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DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON

CONSTRUCTION PROJECT AT ISOLATED AREA

BITS ZC424T: Project Work


By
KUMBHAR MANGESH RAMDAS
(2014118TS083)
Project Work carried at
LARSEN AND TOUBRO LIMITED, CONSTRUCTION, HEAVY CIVIL
INFRASTRUCTURE IC, PORTBLAIR

Submitted in partial fulfillment of B.Tech. Engineering


Technology Degree Programme

Under the Supervision of

ANUKRITI SINGH (ASSISTANT CONSTRUCTION MANAGER-CIVIL)


L&T CONSTRUCTION, HEAVY CIVIL INFRASTRUCTURE IC,
PORT BLAIR

BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE


PILANI (RAJASTHAN)
Nov 2017

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
Page 1
DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON
CONSTRUCTION PROJECT AT ISOLATED AREA

BITS ZC424T: Project Work


By
KUMBHAR MANGESH RAMDAS
(2014118TS083)
Project Work carried out at
LARSEN AND TOUBRO LIMITED, CONSTRUCTION, HEAVY CIVIL
INFRASTRUCTURE IC, PORTBLAIR

Submitted in partial fulfillment of B.Tech. Engineering


Technology Degree Programme

Under the Supervision of

ANUKRITI SINGH (ASSISTANT CONSTRUCTION MANAGER-CIVIL)


L&T CONSTRUCTION, HEAVY CIVIL INFRASTRUCTURE IC,
PORT BLAIR

Signature of Student Signature of Supervisor Signature of Additional


Examiner

Mangesh Kumbhar Anukriti Singh Rajarathinam R.

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
Page 2
BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE
PILANI (RAJASTHAN)

CERTIFICATE

This is to certify that the Project work entitled, “DEVELOPING STRATEGIES FOR COST
AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA ’’
submitted by KUMBHAR MANGESH RAMDAS (2014 18 TS 083) in the partial
fulfillment of the requirements of B.Tech Engineering Technology degree of BITS embodies the
bonafide work done by him under my supervision.

___________________

Signature of the Supervisor


Anukriti Singh
Place: Port Blair_____________ A.C.M. (Civil Dept.)
L&T CONSTRUCTION
Date: 29/11/2017_______________ Port Blair Project, A&N

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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ABSTRACT

Dissertation Title : DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON


CONSTRUCTION PROJECT AT ISOLATED AREA
Supervisor : Anukriti Singh

Name of Student : Kumbhar Mangesh Ramdas

Semester : Six

ID No : 2014 18 TS 083

Time and cost performance is the fundamental criteria for success of any
project. As a consequence most of the project face huge amount of time and
cost overrun. This study assessed the time and cost performance of
construction projects in isolated area.
Timely delivery of the material controls 80 % of the project schedule. As the
project is in remote location it shall be operate with extra effort for timely
completion of project within estimated cost.
Micro level plan is necessary with respect to complete material list,
identification of material source well in advance, tentative commencement of
purchase, identification of procedures and other requirements with highest
level safety and security, Assuring the timely availability of material at site
,study of climatic conditions of location.

Signature of Student Signature of the supervisor

Kumbhar Mangesh Anukriti Singh


Date: - 29/11/2017 L&T CONSTRUCTION

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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ACKNOWLEDGEMENT

The satisfaction and the happiness that accompanies the successful


completion of only task would be incomplete without expression of appreciation
and gratitude to the people who made it possible.

Indeed I consider it as a pleasant duty, though equally difficult to acknowledge


the motivating efforts of several people who have helped me in bringing this
dissertation Project to find its delight.

1.1 I take this opportunity to express my profound gratitude and deep regards
to my guide Ms. Anukruti singh (Assistant construction Manager -
Civil) and Mr.Rajarathinam R (Asst.Manager – Civil) - L&T
CONSTRUCTION, INFRASTRICTIRE IC, Port Blair Project, for his
exemplary guidance, monitoring and constant encouragement throughout
the course of this thesis work. The blessing, help and guidance given by
them time to time shall carry me a long way in journey of life on which I
am about to embark.

Finally, I owe my gratitude to my beloved parents and my dear most friends


who have always stood by me and have been my moral support with sheer zeal
and enthusiasm at the worry and I dedicate my work to them

Lastly I also thank all the instructors those helped directly or indirectly for
completion my project.

Mangesh Kumbhar
DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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Table of Contents

1. ORGANIZATION PROFILE

1.1 About the Overview of the Company……….……………………….8

1.2 Organization Structure……………………………………………….9

1. 3About Project Location – Port Blair………………………… … …10

1.4 Limitations and Challenges In this project………………………….10

1.5 About Construction industry – General…………………………….10

2. LITERATURE REVIEW

2.1 General…………………………………………………………… 12

2.2 Concepts and Definitions……………………………………………12

2.2.1 Logistics Management……………………………………..12

2.2.2 Supply Chain Management…………………………………12

2.2.3 Material Logistics Planning……………………………….12

2.2.4 Logistics Techniques………………………………………13

2.3 Third Part Logistics………………………………………………….14

3. Planning & Scheduling for Saving Time and Cost

1 .0 Project Schedule……………………………..……………………15

1.1 Construction Schedule……………………….…………………….15

1.2 Invoice Schedule……………………………….…………………..18

1.3 Schedule of Milestone…………………………………………......19


DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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1.4 Schedule of Plant and Machinery …………………………………19

1.5 Schedule of Staff………………………………………………….21

1.6 Schedule of Manpower Requirement ……………………………..21

1.7 Schedule of material requirement …………………………………23

1.8 Schedule of direct cost……………………………………………..23

1.9 Schedule of indirect cost……………………………………………23

4. Identification of source of material require for project ………………..24

5. Logistic plan and route survey…………………………………………..28

6. COST ANALYSIS

6.1 Cost analysis for project ……………………………………………..30

6.2 Strategies for cost implication ……………………………………….30

7. Implementation of logistic system ………………………………………….31

8. CONCLUSION ……………………………………………………………...32

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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CHAPETR I
ORGANISATION PROFILE
1.1 About the Overview of the Company

Larsen & Toubro Limited is a USD 14 Billion Technology, Engineering,


Construction, Manufacturing and Financial services conglomerate, with global
operations. Its products and systems are marketed in over 30 countries
worldwide. A strong, customer-focused approach and constant quest for top-
class quality have enabled L&T to attain and sustain leadership in its major
lines of business over seven decades. L&T divided into various segments like
Infrastructure, Heavy Engineering, Electrical and Automation, Machinery and
Industrial products, integrated engineering services, shipbuilding and Property
development business.

Major revenue generates under Infrastructure segment which is called as


Larsen & Toubro – Construction. It is equipped with the requisite expertise and
wide –ranging experience to undertake Engineering Procurement and
Construction (EPC) projects with single source responsibility. Contracts are
executed using state of the art design tools and project management techniques
from concept of commissioning.

To allow more in-depth technology and business development as well as focus


attention on domestic and international project execution L&T –Construction
organized into Six Independent companies.

 Heavy civil Infrastructure


 Buildings & Factories
 Transportation Infrastructure
 Power Transmission & Distribution Projects
DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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 Metallurgical & Material Handling Projects
 Power Transmission & Distribution
 L&T Geo structure
 Smart world and communication
 Water & Renewable Energy

1.2 Organisation Structure

The Heavy Civil Infrastructure Independent Company undertakes construction


of heavy civil projects meeting international standards of quality. To focus in
depth this Independent company further divided into following business units.

 Road, Runways and Elevated Corridors


 Metros, Ports and Special Bridges
 Defence
 Railway Construction
 Hydel Power Projects
 Nuclear Construction

Some of Critical Projects which is executed by L&T – Infrastructure company as


follows.

 1020 MW Tala Hydro Electric Project – Bhutan.


 Underground Metro Rail Corridor for DMRC, Delhi.
 Chennai – Tada Roda Project.
 Baroda Bharuch Road Project.
 Mumbai Monorail Project.
 Second Vivekananda Bridge – Kolkata.
 Panipat Elevated Expressway Project.
 2 x 540 Mwe Tarapur Atomic Power Project
 2 x 220 Mwe Kaiga Atomic Power Project

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1.3 About Project Location PortBlair

This Site is located in Port Blair of Andaman and Nicobar Island. The average
temperature varies a little bit ranging from 20°C to 30°C with the heavy or
light rainfall almost throughout the year. Port Blair receives about 3176mm of
rainfall and the average monthly rainfall is around 265mm except the coolest
month of January, February and March, almost all other months receives heavy
precipitation. Port Blair falls in Zone V of the seismic zone map of India. The
capital of the union territory, Port Blair, is located 1,255 km from Kolkata,
1,200 km from Visakhapatnam and 1,190 km from Chennai. Shipping is the
main mode of transportation for passenger and cargo between the Islands.

1.4 Limitations and Challenges in this project

Limitations:

 No previous experience to handle such type of project.


 Row material quality is not upto the marked as per the requirement.
 Limited no of options available.
 Multiple mode of transport (land as well as sea) involved.
 More no of supply points across all over India.
Challenges:

 Scattered islands.
 Distance from main land (1200 Kms).
 Construction material –Transportation from main land only.
 Limited working season- 4-5 months (heavy rain)
 Disinclination of labor and staff to work in Remote Island.

1.5 About Construction industry – General

The construction industry is the second largest industry of the country after
agriculture accounting for 11 percent of India’s GDP and also most complex
DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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industries. It makes a significant contribution to the national economy and
provides employment for all the citizens of India. The use of various new
technologies and deployment of project management strategies, Supply chain
Management has made it possible to undertake projects in mega scale to build
developed India. The Construction process consists of several activities where
many different participants are involved in each activity. Its is project based
Industry, where each construction project site could be considered as a
temporary organization. As well other industries, construction industry also
interested in high production efficiency while keeping the overall cost as low
as possible to increase the profitability.

Most construction projects are affected by several factors that have high impact
on the efficiency of the resource by reducing their overall productivity. This
affects quality, cost and schedule of the project. The main reason behind that is
poor management of materials, machineries and tools/ tackles. Proper
management of these important components could increase productivity
significantly. These components should be well managed through supply chain
management, in order to be successful.

The construction industry is one of the most challenging to work, in nature.


Flow of information is very complex compare to other industries, due to this
process will be affected. One of these factors is logistics which is defined as
the management of the smooth flow of materials, equipments, tools and tackles
from the point of release to the point of use. As the construction industry is
constantly developing, production costs are rising steadily. But the production
efficiency and the way of working is not developed much.

Improving Logistics and supply chain by reducing activities that do not add
value to the final product could be one possible solution to lower production
cost. Timely delivery controls 80% of the project schedule and transportation
cost of construction materials to 30% of the total construction costs.

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CHAPTER 2

LITERATURE REVIEW
2.1General

The Literature review is required in order to identify and study what has been
done earlier within the field of Logistics and Supply chain Management.
Exploration of domestic and International books and articles will create the
scientific background of work with the project.

2.2Concepts and Definitions

2.2.1 Logistics Management

As logistics is the main issue of this paper it is worth to give clear definition
of the specific concept. Hence, Logistics management (LM) is the part of supply
chain management that plans, implements and controls the efficient, effective,
forward and reverse flow and storage of goods, services and related information
between the point of origin and the point of consumption in order to meet projects
requirements.

2.2.2 Supply Chain Management

Supply chain management (SCM) has been defined as the "design, planning,
execution, control, and monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure, leveraging worldwide
logistics, synchronizing supply with demand and measuring performance globally
Supply chain management is an important concept which is closely related to the
main topic of this paper.

2.2.3 Material Logistics Planning

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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Material Logistics Planning (MLP) is defined as a practice that has been designed
to support construction projects in order to achieve planned certainty and cost
predictability. This is highly appropriate for large and complex building projects.
Material Logistics Planning deals with the proactive management of the varieties
and quantities of materials that are used. This includes supply routes, storage, use,
reuse and handling of excess materials. Supply chains and planning controls
become more complex as projects get larger. That makes logistics much more
important.

2.2.4 Logistics Techniques

As background some logistics techniques are presented in order to get better


understanding of the logistics topic. There are different logistics techniques used
by different companies in different countries. Some of these have been published
and described by WRAP (Waste & Resources Action Programme) in the report
Material logistics plan good practice guidance. These techniques follow below,

Construction Consolidation Centers


Construction Consolidation Centers (CCC) are centers that are used to supply and
distribute materials to several construction projects. These centers provide safe and
efficient material flows from supplier to the construction site which makes it an
effective supply chain management solution. The initial idea with the concept was
to supply construction projects in challenging environments such as overloaded
urban areas. Construction Consolidation Centers distribute materials in a right
time, to the right place and in the required quantity.

Just-In-Time Delivery

Just-In Time (JIT) delivery relates to frequent deliveries in work packages or loads
delivered in time for usage. That helps to perform the next task without suffering
from any delay. The best way of doing that is through a Construction
Consolidation Centers or by suppliers themselves. Advantages with Just-In-Time
deliveries are that it reduces on-site storage of materials, reduces the risk of
damage of materials kept on site and even reduces risk for safety incidents.

Demand Smoothing

Demand smoothing (DS) is a way of looking on the project activity plan as the
whole and identifying how those activities could be balanced in order to reduce the
DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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amount of resources needed for transport, materials and labor to manage the actual
task.

2.3 Third Part Logistics

On site construction logistics is an important and often underestimated topic within


the construction industry. Third part logistics (3PL) companies were the first who
realized possibilities for financial benefits by focusing on logistics issues earlier in
planning stage. The main point with third part logistics services is to create a safe,
clean and effective workplace where contractors and subcontractors do not need to
transport their materials.

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CHAPTER 3

PLANNING AND SCHEDULING FOR SAVING TIME


AND COST

1. PROJECT SCHEDULE –

To achive the project within the time and cost we have prepared the following
schedule and started monitoring base on it.

The schedules are as below from S-0 to S-9

1.1. CONSTRUCTION SCHEDULE (S-0)


Base on the project duration and milestone dates given by client we
have prepared the following project schedule for this project.

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DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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1.2. INVOICE SCHEDULE (S-1)

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1.3. SCHEDULE OF MILESTONE (S-2)

1.4. SCHEDULE OF PLANT AND MACHINERY (S-3)


Construction equipment is indispensable in the execution of modern high
cost, time – bound massive construction projects. It saves manpower, which is
becoming ever more costly and demanding. It improves productivity and
quality. Equipment planning for a project aims at identifying the construction
tasks to be undertaken by mechanical equipment.

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DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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1.5. SCHEULE OF STAFF (S-4)

1.6. SCHEDULE OF MANPOWER REQUIREMENT (S-5)

The project manpower planning primarily focuses on determining the size of


the project workforce, its structuring into functional groups and worker’s team
and scheduling the manpower. To determine the number of workers needed to
perform a given job in the specified time, data- wise forecasting of the workers
requirements for accomplishing the project work, and finally, organizing the
planned work.

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DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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1.7. SCHEDULE OF MATERIAL REQUIREMENT (S-6)

Materials management is an important element in project planning and control.


Materials represent a major expense in construction, so
minimizing procurement or purchase costs presents important opportunities for
reducing costs. Poor materials management can also result in large and
avoidable costs during construction. First, if materials are purchased early,
capital may be tied up and interest charges incurred on the excess inventory of
materials. Even worse, materials may deteriorate during storage or be stolen
unless special care is taken. For example, electrical equipment often must be
stored in waterproof locations. Second, delays and extra expenses may be
incurred if materials required for particular activities are not available.
Accordingly, insuring a timely flow of material is an important concern of
project managers.

1.8. SCHEDULE OF DIRECT COST (S-8)

Base on the working direct cost other than overheads and which is require for
execute the boq items derived first for base price.

1.9. SCHEDULE OF INDIRECT COST (S-9)

Indirect cost includes the overhead cost and fixed cost for the project.

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CHAPTER 4

IDENTIFICATION OF SOURCE OF MATERIAL


REQUIRE FOR PROJECT
Base on the material plan and schedule following are the major material require for
the project.

Since the maximum material is not available in Potblair, we have planned to


procured and transport the material from Mainland as per the following source and
make.

Enabling work
1 GI sheet Tata/Everest
2 ERW pipe Jindal/Tata/SAIL
3 Bore well pump KSB/Crompton
4 PVC pipe Supreme/AGR/Ashirwad/Astral
5 Drain channel GMGR/Chilly/Neer
Civil Work
Ultratech/Ambuja/JK/
1 Cement
/ACC/Vikram/Birla
2 White cement Birla/JK
3 TMT bar Fe500 D SAIL/Tata Tiscon/RINL
4 Form Work Paschal/Doka
Chloropyriphos emulsifying
5 concentrate (Anti termite Pyramid, Searle, Montari, Bayer
chemical)
6 Admixture Fosroc/Cico/ As per design mix.
7 RE 500 chemical Hilti
Flooring Work
1 Epoxy Floor/wall Fosroc, Sika, Ciba-Geigy
2 Ceramic Tiles (Wall/Floor) Johnson/ Kajaria/ Somany
3 Vitrified tile flooring Johnson/ Kajaria/ Somany
Mero-TSK Germany/ Linder-
4 False Floor
Group / Unitile
5 Marble Stone Makrana White Marble
Cerabond/ Balgrout/MYK
6 Tile adhesive
Laticrete/Pidilite
LG/Armstrong/Premier
7 PVC flooring Polyfilm/Krishna
Vinyl
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8 Concrete hardener Sika/Fosroc
9 Joint filler Sika/Fosroc
Structural Steel
1 Structural Steel TATA/SAIL/Jindal/RINL
2 Synthetic Enamel paint Berger/Asian
Door
1 Steel Fire Proof Door Ahlada/Shakti Hormann
Alucobond/EURO Bond
2 Aluminium Composite Panels
industries/Alstone
Thormarine/ Hellbergs/
3 Water Tight Doors
Tempesta SRL
Water Proofing Sika/BASF/Renolit
Water Supply
1 GI Pipe Jindal Hissar/Tata /Prakash
Zoloto, Unik/RR Brand or
2 GI Fitting
equivalent.
3 CI Pipe Nicco/RIF/A-1
Chilly‟s/GMGR/Marvel or
4 SS Anti Cockroach Floor Trap
equivalent.
Chilly‟s/GMGR/Marvel or
5 SS Jali
equivalent.
Chilly‟s/GMGR/Marvel or
6 SS Shower Chanel
equivalent.
Sanitary Work
1 European type W.C. pan Parryware, Cera & Hindware
2 Urinal/ Wash Basin Parry ware, Cera & Hindware
3 Marble partition Raj Nagar or equivalent
4 SS sink Jayna, Nirali, Kingston
Sink single bowl single drain
5 Jayna, Nirali, Kingston
board
6 Health Faucet Jaquar/Parko/Hindware
Modi guard glass/Saint gobain/
7 Mirror
Atul Safe
8 Wall mounted Hand drier Jaquar/Xlerator/Euronics
SS 304 grade of water storage
9 Jindal
tank 7.5klt capacity
Water Cooler &
RO System
Others Items
1 FRP Door & Frame Sintex/Rajshri
2 Flush Doors/Panel Door Kitply,Century,Green,
3 Aluminum Sections Hindalco, Acme , Jindal
4 Aluminum Hardware fittings Argent, Classic (ISI marked)
5 Polysulphide sealant Pidilite, Choksey, Fosroc
Asian Paints, Jenson&
6 Paints/OBD Nicholson, Nerolac,
Berger, ICI (1st Quality)

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Asian Paints, Jenson&
7 Acrylic Smooth Exterior Paints
Nicholson, Nerolac,
Snowcem India Ltd, Berger,
8 Water Proof cement paint Jenson&
Nicholson, Asian Paints
9 Epoxy paint(External) Sikka/Fosroc/Ciba-Geigy
CICO, Impremo, Pidilite, Fosroc ,
10 Water proofing compound
STP
11 Bitumen impregnated board Shalitex or equivalent
Commander, Aggrawal with
12 PVC WC seat covers ISImarked.
(White only)
13 CP Brass fittings Parko, Jacquar, Hindware
14 Gun Metal/ Brass valves Leader, Sant ISI Marked, Zoloto
15 Pressure regulating valve Zoloto, Audco, Advance
16 MS Pipe Prakash, Tata, Jindal, SAIL
17 Sand cast iron pipes RIF or ISI marked AVON, Nicco
18 UPVC Rain water pipe Jindal/Supreme/AGR
19 Insulation for pipe Asian paints/Pidilite/Fosroc
Perfect , Anand with ISI marked
20 SWG pipes & gully trap or
equivalent
21 Floor Trap Chilly cockroach trap/GMGR
22 CI Manhole covers & Gratings RIF or ISI marked / Nicco
FRANK/Flexseal/Nextgen steel &
24 Puddle Flange Alloys or
equivalent
Racold, Usha Lexus, Crompton
25 Geysers (5 star BEE Rating)
Greaves.
26 PVC storage water tank Sintex, Unitank
27 SS Pipe Jindal Stainless/Salem
28 Foot rest ISI Marked

Accordingly following are the major Quantities require for the project.

No. Material Quantity UOM


1 Cement 21000 MT
2 Aggregate 70000 MT
3 Sand 45000 MT
4 Reinforcement 6000 MT
142000 MT
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It has been decided that the material which has to procure from Main land is to be
finalized by central material procurement department of Larsen and toubro.

The requirement is to be given by site planning team within the require time frame

Since its huge material to be transported from Main land to the island ,The timely
completion of project scope is 80% depend upon the material transportation.

Also there are some machinery’s which also need to transport from main land due
to non-availability of such equipment’s at isolated island.

Plant and machinery to be deploy from company assets.

For major materials source has been finalized by assuring the quantitative and
qualitative requirements.

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CHAPTER 5

LOGISTIC PLAN AND ROUTE SURVEY

Since the project is located at a remote location, the transportation of materials to


site location is one of the key drivers for the success of the project. Hence the plan
was divided into two stages:-

1. Identification of agency
2. logistics activities.

Transportation of Major Material.

 Cement and Steel- Shipment of cement from Chennai to Portblair upto site
delivery by TCI Seaway-
o Local collection from Ultratech/J.K. to yard
o Unloading/ Loading at port.
o Sea freight from Chennai port to port blair port.
o From Port Blair port to site delivery.
 Aggregate-
o Source Location- SIVA agencies, Tuticorin, Tamilanadu
o Vessel Details- Allcargo shipment services. Vessel name- Allcargo
Susheela.(transportation from crusher to tuticorin port to carried out
by SIVA Agencies.
o Delivery from port Blair Port to site –faremax transport services.
 Sand-
o Source-Rushikulya river, Gopalpur, Odisha.
o Transportation from Odisha to Kolkata port by road.
o Vessel details from Kolkata port-Allcargo Shipment Services. Vessel
name- Allcargo Lakshmi

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
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ll the procurement activities such as given below, are routine activities of any
procurement procedure, but main point which was suggested to have a more
emphasis on back to back arrangement on delivery front so as to optimize the
material flow, looking at the long duration of the project, because generally in
siemens, considering the seller’s market in power related equipments, PO ‘s are
placed for total qty and material is lifted in one lot.

a) Vendor selection
b) Vendor approval
c) Quotation approval
d) Approval for technical parameter
e) Final negotiation and order placement.

All the logistics related activities are to be divided into following parts, such as

a) Logistics strategy formation,


b) Finalization of scope of activities,
c) Finalization of monitoring mechanism
d) Implementation of logistic methodology.

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CHAPTER 6

COST ANALYSIS

Most of the projects are facing the problem of cost overrun.

The various cost components of the project are given below

Specialize Agencies, Cement, 6%


5%
Sand & Aggregate,
Overheads, 9%
6%

Steel, 10%

Labour , 17%

Plant & Machinery,


14%

Transportation of Other material, 22%


Material and others,
12%

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CHAPTER -7
IMPLEMENTATION OF LOGISTIC SYSTEM
For effective implementation of logistics arrangement for our project, we have
adopted the standard operating procedures .

We have set the separate team at Mainland as well as in island for monitoring and
keeping the follow-up. This system help us to expedite the procedure and timely
availability of material at site.

The main issue was to how to implement the logistics arrangement. For this
following steps were suggested

1. detailed discussion with all the partners,


2. formulation of sop’s and authority matrix.

Based on these suggestions, a detailed discussion was conducted with both the
representatives of TCI as well as TCI seaways about the smooth functioning of
total logistic arrangement.
SOP’s (standard operating procedures) were formalized covering all the activities
related to material movement and responsibilities of each channel partner were
indicated including the responsible person.

Main features of these SOP’S were.


1. After material is ready at supplier’s end, inspection call will be raised.
3. L&T will issue a dispatch instruction to the supplier with a copy to TCI
for dispatching the material to Chennai.
4. L&T will advice the TCI about the complete weight and vol along with the
type of vehicle to be placed.
5. TCI ltd will take the material to Chennai and will hand over to TCI seaways.
6. TCI seaways will move the material from Chennai to portblair and will hand
over the material at the stores.
7. All type of loading / unloading of material after getting the material from
supplier, will be responsibility of the TCI and TCI seaways.
8. TCI Seaways will load the material in Chennai in the first available ship and
accordingly intimate the L&T about the date of sailing.
9. The average speed of truck/trailer will be considered as 250 kms per day and for
shipping time from Chennai to port Blair max time will be four days
DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
Page 31
CHAPTER-8
CONCLUSION

Due to intricate planning, and well before time ordering of materials the activities
of excavation and soil stabilization has been completed 100% as on today. This
was only possible due to proper material procurement planning, choosing logistic
option wisely and maintaining optimum stock (minimum two month stock) at all
times at the location. Being a remote area with limited access these factors are
major drivers in ensuring that the project is completed well within time.

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
Page 32
This checklist is to be duly completed, verified and signed by the student.

1. Is the final report neatly formatted with all the elements required Yes / No
for a technical Report?

2. Is the Cover page in proper format as given in Annexure A? Yes / No

3. Is the Title page (Inner cover page) in proper format? Yes / No

4. (a) Is the Certificate from the Supervisor in proper format? Yes / No

(b) Has it been signed by the Supervisor? Yes / No

5. Is the Abstract included in the report properly written within one page? Have Yes / No
the technical keywords been specified properly?

Yes / No

6. Is the title of your report appropriate? The title should be adequately Yes / No
descriptive, precise and must reflect scope of the actual work done.
Uncommon abbreviations / Acronyms should not be used in the title

7. Have you included the List of abbreviations / Acronyms? Yes / No

8. Does the Report contain a summary of the literature survey? Yes / No

9. Does the Table of Contents include page numbers? Yes / No

(i). Are the Pages numbered properly? (Ch. 1 should start on Page # 1) Yes / No
(ii). Are the Figures numbered properly? (Figure Numbers and Figure
Titles should be at the bottom of the figures)
(iii). Are the Tables numbered properly? (Table Numbers and Table Titles Yes / No
should be at the top of the tables)
(iv). Are the Captions for the Figures and Tables proper?
(v). Are the Appendices numbered properly? Are their titles appropriate
Yes / No

Yes / No

Yes / No

10. Is the conclusion of the Report based on discussion of the work? Yes / No

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
Page 33
11. Are References or Bibliography given at the end of the Report? Yes / No

Have the References been cited properly inside the text of the Report?

Yes / No
Are all the references cited in the body of the report

Yes / No

12. Is the report format and content according to the guidelines? The report Yes / No
should not be a mere printout of a Power Point Presentation, or a user
manual. Source code of software need not be included in the report.

Declaration by Student:

I certify that I have properly verified all the items in this checklist and ensure that the report
is in proper format as specified in the course handout.

________________________________

Place: Port Blair________________ Signature of the Student

Date: _29/11/2017_____________ Name: Kumbhar Mangesh Ramdas

ID No.: 201418TS083

DEVELOPING STRATEGIES FOR COST AND TIME IMPLICATION ON CONSTRUCTION PROJECT AT ISOLATED AREA
Page 34

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