Project Management in Construction

Section A: Objective Type & Short Questions (30 Marks)

Part One:

Multiple Choices:

1. It included manpower, material and machinery that is necessary to perform the work:

• Scope
• Quality
• Resources
• Completion time

2. In this analysis a project is formulated and appraised based on the estimates generated from past data, experience & analysis.

• Risk analysis
• Sensitivity analysis
• Probability analysis
• Economic analysis

3. It is a verbal written or on-line document that shows the up-to-date performance status of a task that has been entrusted to a responsibility/accounting centre.

• Trends forecasting
• Reporting performance
• Performance variance analysis
• Recording performance

4. In this contract, the architectural and engineering design and drawings are provided by the employer/client to the contractor at the time of tendering as a part of the contract documents:

• Build-only contracts
• Build-own transfer contracts
• Engineering procurement
• Construction contract

5. These arise where no ground exists either in the contract or in common law:

• Contractual claims
• Extra contractual claims
• Ex-gratia claims
• None of the above

6. In this case, both the parties willingly discuss the dispute and arrive at a settlement without the intervention of any third party:

• Conciliation through negotiations
• Conciliation through mediation
• Conciliation by setting up „Dispute Review Board‟ (DRB)
• Conciliation through others

7. The claim which is registered by giving a notice is known as           

• Registering claims
• Establishing claims
• Presentation claims
• None of the above

8. This term covers the entire electronic and electro-mechanical equipment used in the computerized data processing system:

• Hardware
• Software
• Operators
• Procedure

9. This enables the electronic transfer of a complete file from one computer to another:

• Internet
• Intranets
• telnet
• File transfer protocol (FTP)

10. It is an assurance to the owner that selected the contractor will actually proceed with the contract at the bid price:

• Performance bonds
• Bid bonds
• Claim bonds
• Contract bonds

Part Two:

1. What are the main causes of a project failure?

2. What is „Responsibility assignment Matrix‟ (RAM) chart?

3. Define professional construction management (PCM) approach.

4. Differentiate between „Project Management‟ & „General Management‟.

Section B: Caselets (40 Marks)

Caselet 1

Huge Electronics Company (HEC) is a designer and manufacturer of electronics equipment that is sold primarily to government/military customers. Located in the Western United States, HEC grew rapidly in the 1970s to become one of the nation‟s largest government contractors with employees in excess of 50,000. Partly because of HEC‟s rapid growth, the company organization chart was constantly in a state of flux. Despite the changes, the engineering divisions remained fairly stable in a classic project management structure. The manufacturing division was structured in a matrix organization because of the large investments in manufacturing equipment necessary. Duplicating these equipment purchases for every project would not be cost effective.

Naturally, the project managers in the engineering division‟s wieded a great deal of power to set policy and make decisions. The manufacturing project managers did not possess the total authority shared by their engineering counterparts; they did, however, have a strong say in controlling the destiny of their projects, if not the operating policy of the division. Due to of the matrix structure, functional and project managers coexisted at the same level in the management hierarchy, both reporting directly to the division manager. While the power in the division was spread evenly between functional and project management, when push came to shove, the project mangers‟ possessed up what through the project structure I led to the influential edge that seemed to exist.

Make Versus Buy Decisions

As a result of the fast growth experienced by HEC, production capacity could not keep pace with demand in many cases. Some of the company‟s product designs had to be off loaded either completely or partially for the production phase of a contract. The question of who should/would make the decision whether to manufacture in-house or off-load a particular product was always a point of contention. At least three parties influenced the decision: (1) the manufacturing project manager (MPM) (2) the manufacturing functional managers, and (3) the engineering project manager. Initially a manufacturing project plan is published by the MPM. The engineering project manager can influence make-buy decisions by the way the products are specified on the drawings to be used for manufacturing facility is incapable of producing, the MPM has no alternative but to have the product fabricated by a firm with the necessary capability.

Project tiger and the Cable Shop

The decision faced by the Tiger MPM regarding the selection of a production location for the Tiger electronic cables is a dramatic example of the make-buy decisions faced by HEC managers. Below is a description of the cast of characters who attempt to influence the Tiger MPM‟s decisions.

Final Assembly Project Engineer: Wally Carr has 25 years experience with the company, worked his way up through the ranks, and has an inherent distrust for the wire and cable shop because of bad past experiences. His advice to the MPM is: „We should set up our own shop over in the new Tiger final assembly building. This can have control over our own destiny. That‟s what we did on the old Stingray project and it worked great. Those cable guys never meet their schedules.”

Cable Project Engineer: Charlene Rain has five years experience in the firm and was previously in sales for a small electronics distributor. It known to anyone at the time, she has purchased an interest in a local wire and cable subcontractor that specializes in doing overflow work from large prime contractors. Her advice to the MPM is: “We should off-load these cables to a local vendor. They are a simple design and we need to concentrate our manufacturing engineering efforts on the more complicated designs.”

Wire and cable department Manager: Richard Treese, who recently took over the wire department, has already shown signs of improving a department that definitely needed some improvement. He is also the direct manager of the wire project engineer who is in favour of off-loading. His advice to the MPM is: “I know the department is near capacity right now, but some months from now when the Tiger project comes down the pike, we will be ready to handle it. We will deliver quality cables to meet your schedules.

Questions:

1. You are the project manager: you know how important project is for, both, the company and your career.

2. Should you go with a department that has been chronically delaying when the contract has a large incentive/penalty clause for on-time delivery?

3. Can you risk sending out a design to a supplier when the design is to be proved?

Caselet 2

In mid-1998, the personal products divisions of HLL launched campaign called „Project Bharat‟ to be carried out by the end of 1999. „Project Bharat‟ was a direct marketing exercise undertaking to address the issues of awareness, attitudes and habits of rural consumers and increase the penetration level of HLL products. It was the first and the largest rural home-to-home operation to have ever been taken up by any company carried out its direct marketing operations in the high potential districts of the country to attract first-time users.

Under „Project Bharat,‟ HLL vans villages and sold small packs consisting of low-unit-price pack each of its detergent, toothpaste, face cream and talcum powder for Rs. 15. During the sales, company representatives also explained to the people how to use these products with the help of a video show. The villagers were also educated about the superior benefits of using the company‟s products as compared to their current habits. This was very helpful for HLL, as it created awareness of its product categories and the availability of the affordable packs.

However, the company sensed that the sampling campaign was not enough to attract first time users. Therefore, it rolled out a follow-up program called the „Integrated Rural Promotion Van‟ (IRPV), which further enhanced the awareness about LL‟s products in village with an population above 2000.

Another program targeted at villages with a population of less than 2000 was simultaneously launched. Under this program, the company provided self-employment opportunities to villagers through Self-Help Groups (SHG). SGHs operated like direct-to home distributors wherein groups of 15-20 villagers who are the poverty line (those people whose monthly income was less than Rs. 750 per month) were provided with an opportunity to take micro-credit from banks. Using this money, villagers could buy HLL‟s products and sell them to consumers, thereby, generating income as well as employment for themselves. This activity also helped the company increase the reach of its products.

Questions:

1. What are the significant features of HLL‟s ad campaign „Project Bharat‟?

2. How has HLL identified itself with India‟s „Economic Development‟?

Section C: Applied Theory (30 Marks)

1. Who is a “Project Manager”? Describe the role of a project manager.

2. What is “PMIS” report? Explain the benefits of establishing “PMIS”.