CME Module 1 Notes
CME Module 1 Notes
A construction project is complex in nature and has various activities with it. Most of the
activities are interrelated and needs proper coordination.
A. Planning
Planning is the primary and most important function of management.
It is not possible to achieve the objectives of an organization without proper
planning.
Planning mainly relates to defining the standard operating procedures. (S O P)
Planning also includes deciding beforehand.
Different actions to be taken (what)
Time of implementing the actions (when)
Method of executing the actions (How)
B. Organizing
Organizing refers to identification and categorization of different departments.
Organizing plays a very important role for distribution of work.
Organizing also defines the roles and responsibilities of each department.
It is possible to establish a line of command by proper organization.
Organizing has to be done such that coordination is achieved within the group
as well as between different groups.
C. Staffing
Staffing is a process of selection of right personnel for a specific job.
Highly qualified and experienced personnel are required / preferred at higher
levels of organization.
Training the recruited personnel is also an important part of staffing.
Success of an organization mainly depends on staffing process.
D. Directing
After having right personnel for specific activities, it becomes necessary to
perform towards achieving defined objectives.
Directing involves.
Communication.
Leadership
Motivation
Communication helps employees to understand their roles and responsibilities.
Leadership qualities by manages will have an influence on subordinates.
Motivation helps to enhance the efficiency by increasing dedication level of all
employees.
E. Controlling
Controlling is to keep the process and progress in check. (or on track)
Monitoring and Inspections has to be done to make sure all the activities are
carried out as per plan.
Controlling is possible by establishing standards for all the process and quality
of each process / product.
Proper resource allocation is very important for effective control.
F. Innovation
Developing new ideas and incorporating latest technologies enhances
efficiency.
Use of innovations reduces resource consumption.
Innovation also helps to attract clients and hence helps for brand building.
G. Representation
In spite of performing all the above function, it becomes necessary to present it
in front of the world.
Marketing strategies is very important for recognition of any organization.
1.3PLANNING
Planning in general refers to preparation for future. Planning is a continuous process and is the
bridge between present and future.
Planning has to be done very carefully as it has an influence on all the process and the end result.
Following are some of the reasons to illustrate importance of planning.
To start and run an organization, complex decisions are to be taken, which depends
on various factors.
All the decisions involve risks and uncertainties, associated with it.
Planning is helpful in anticipating such risk and prepare contingency plan for it.
Planning helps for proper resources allocation, which helps to focus attention on
objectives.
Planning also helps for better coordination between interdependent activities
hence focus remains on objectives.
C. To facilitate control
A. Operational plan
Operational plan is a detailed plan set and used by managers.
Operational plan maps out the day – to –day activities of any organization.
Operational plan is a short term plan, which is also called work plan.
B. Tactical plan
Tactical plans are prepared at lower level of organization.
Tactical plans are adopted at departmental levels for individual activities.
Tactical planning has to be flexible in nature and market oriented.
C. Strategic plans
Strategic planning begins with the vision and mission of the organization.
Strategic plan is a planning process with long term visions.
Strategic plans are framed by executive level of management and applicable for
the entire organization.
Strategic plans are generally set for five – ten years, depending on type of
organization.
D. Contingency plan
Adequacy and consistency of any plan can not be assured.
There might be changes in circumstances in terms of government policies,
taxation, market demand or other external factors.
In such cases, it becomes necessary to have an alternative plan, as the original
plan cannot be adopted.
Contingency plan is prepared with original plan but used only depending on
requirement.
Construction activities are complex and people involved in construction management must
possess some basic skill sets.
Technical skill
Communication skill
Negotiation skill
Decision making skill
A construction project includes participation of numerous vendors for it’s successful completion.
3. Structural consultant
Structural design in an important aspect of construction.
Number of structural elements, spacing, dimensions, reinforcement, grade of
concrete and all other structural details are to be provided by structural
consultant.
Structural consultant has to closely work with architects, to incorporate the
changes based on requirements.
4. Civil contractor
Execution of work / activities is one of the important aspect of construction.
Project management consultancy is responsible for finalizing the civil contractor.
Contractor has to abide by the drawings provided and the specifications of
materials and construction practice.
The quality of construction depends on contractor and the resources that the
organization has in form of skilled and unskilled labours.
5. Services consultant
For major projects Mechanical, Electrical and Plumbing services (MEP services or
building services) plays a very important role.
Mechanical services mainly includes lifts, fire protection and HVAC (Heating,
Ventilation and Air conditioning)
Services consultant will have to co-ordinate with both architect and structural
consultant for finalizing the layout and design aspects.
6. Finishes constructor (Interior contractor)
In some projects, civil works and interior works are categorized separately and
work is awarded to separate vendors.
Interior works mainly include flooring, partitions (Gypsum), False ceiling, painting
and other activities.
Interior contractor has to co-ordinate with architect as well as services consultant.
All the associated vendors, working as a team, as per the objectives and requirements results
in successful completion of the project, achieving the co – ordination between all the
participants reflects on construction project management.
1.6CONSTRUCTION PLANNING
Construction planning is very important and is the responsibility of owner or owner’s
representatives.
4. Defining procedures
In construction planning, it is important to frame rules.
The standard operating procedure will have to be prepared will have to be prepared
and communicated with all the vendors.
5. Information management
Documentation is one of the key aspects of construction.
Communication, which is exchange of information, has to be systematic.
If the concept is feasible then only the project planning can be carried out
1.7.2 Democratic style: In this style of management, all the employees are directly or indirectly
involved in the process of decision making.
In consultative approach, the opinion of the employees is considered. But still the
decisions are made by higher level of management.
Participative approach gives more liberty compared to consultative. Employees
involve or take part in the decision making process.
When a collective decision is taken, the approach is referred to as collaboration.
1.7.3 Laissez – Faire style: In this style, there is very little or no interference from the higher
level management. This style is also called delegative style of management.
This style is most suitable for well established organizations, with standard
operating procedures.
People working at different levels must have all the skill sets and responsibility to
make decisions.
This approach also has benefits and adverse effects on the performance of
organization.
Organizing may also be defined as, Identification and grouping of activities, framing of
departments, defining relationship between departments and to assign duties and
responsibilities to individuals as well as departments.
Project organization mainly depends on type of establishment and it’s objectives. The term
organizational structure is also used for framing the organization.
1. Line organization
2. Staff organization (Functional organization)
3. Line and staff organization
4. Committee organization
5. Matrix organization
1. Line organization
CEO
Advantages Disadvantages
Structure of organization is very simple Can be adopted only for small enterprises
Delegation of authority is very clear Managers may tend to behave like dictators
2. Staff organization
Organizational structure framed based on functional areas is called staff organization
Care should be taken to assign all the activities to different departments
Also while framing structure, attention should be given to making sure no activity is
assigned to more than one department
Staff organization is also called functional organization
PRESIDENT
Advantages Disadvantages
To overcome the drawbacks of both line organization & staff organization, a combination
of both is used.
It is also referred to as hybrid organization.
The major reason for introducing such structure was increase in complexity of different
industries.
Board of Directors
Advantages Disadvantages
Better decision making can be achieved This type of organizational structure will
result in higher cost because of higher
Organizational structure is flexible in nature salaries
4. Matrix organization
This type is suitable if a company / enterprise has large number of projects (or
operations) and spread over a large geographical area (Across states or spread
nationwide)
In this method, categorization is made on the basis of both Specialization / Department
and Project / Product
President
Director VP VP VP HR
Design Production Finance
Project
Manager - A
Project
Manager - A
Project
Manager - A
Project
Manager - A
Advantages Disadvantages
Further, it is necessary to identify parallel activities and sequential activities to prepare schedule
for activities or a project. It is necessary to prepare the schedule for activities considering all the
practical limitations of activities and project.
Project schedules will have to be based on optimum resources and optimum duration for
activities. Being too optimistic or too pessimistic will not result in appropriate scheduling of
activities and project.
For a construction project, scheduling of activities is very significant. Construction projects will
have its useful life only after the completion of construction. Also the revenue associated with the
project starts only after its completion. Hence for preparing economic and financial feasibility,
project scheduling is very important. But similar to cost estimation, scheduling is also
approximation. The schedule prepared and actual duration for construction should be as close as
possible for the success of the project.
Project scheduling in general or construction project scheduling can be achieved in many ways.
But work breakdown structure serves as the base of preparing schedule. Hence project
scheduling may be defined as “Identification of activities and the interrelationship to assign most
realistic time / duration based on all other resource allocations possible, to meet the objectives of
the project.
Predecessor activity: Predecessor activity is the one, start and finish of which controls the
start and finish of other activity.
the predecessor activity for size stone masonry
Example: Earth work excavation is the
foundation.
Successor activity: Successor activity is the one, start and finish of which depends on start
and finish of other activity.
Example; Painting is successor activity of plastering.
Latest start time: Latest start time is the maximum delayed start for an activity but still
allowing the project to be completed on time.
Latest finish time: Latest finish time of an activity is the maximum delayed completion of it
and still allow the project to be completed on time.
Optimistic time: Minimum possible time required for an activity, considering maximum
resource allocation and assuming over thinking to proceed on expected lines.(to)
Pessimistic time: Maximum or worst time required for an activity, assuming if everything
goes wrong or out of plan.(tp)
Most likely time or Normal time: The optimum time required for completion of an activity
under normal circumstances and practicality. (tm)
Expected time: Calculated time based on optimistic time, pessimistic time and most likely
time of an activity.
TE = (to+4tm+tp)/6
Approaches to scheduling refer to types of project plans based on scheduling. There are three
types of planning process adopted for project scheduling and planning.
1. Forward planning
2. Backward planning
3. Combined planning
1. Forward planning: Forward planning is adopted when there are no specific deadlines set
for the project. Forward planning is also referred to as forward pass. Forward planning is
done based on earliest start and earliest finish time of an activity. Based on this the total
project duration is determined. Since the required start date is unknown, forward
planning starts with time of zero.
3. Combined planning: Knowledge of both earliest and latest times of an activity will help to
allocated resources for an activity in most effective manner. If the planning is done
considering both these times, then it is called combined planning. Transfer of resources is
possible through this plan. Here directly or indirectly combined planning process to be
cost effective.
Work breakdown structure is the decomposition of a project into individual activities. Work
breakdown structure helps to identify the activities based on which project plan may be
prepared.
Work breakdown structure is one of the critical steps of project management, as it forms the
basis for all the following steps.
There is no hard and fast rule for creating a work breakdown structure but generally some
standard tools are used for it.
Work breakdown structure may be represented on a white board or a note pad in its simplest
way. But it is not very effective from communication and control point of view. Hence electronic
format is generally used for this. Bar charts and Gantt charts are generally used to represent
work breakdown structure. These representations can be further exported to Microsoft project
or any other such tool for further precise scheduling.
Gantt chart is a type of bar chart which identifies the project activities and also represents the
dependency/interrelationship between activities. Gantt chart serves the purpose of preparing
the project schedule and also to monitor the present/current status of project.
Gantt chart has a standard format. Individual activities/tasks to be performed is listed in vertical
axis, in its sequential order.
Time intervals or durations of activities are represented on horizontal axis. Gantt chart illustrates
the start and finish dates of individual activities and turn start and finish the dates of the project
as whole.
Network analysis is the technique used for assessment of these network diagrams to understand
best possible resource allocation of various activities of the project.
A. Network elements
Two important technologies are used in network. They are Activity and Event.
1. Activity: Activity is the lowest level of work which is to be performed during the
course of the project, which is associated with time. Fabrication of steel
reinforcement, concreting, curing, and construction of masonry wall are some of the
examples for different activities of a construction project.
B. Representation of network
1. Activity on Arrow: In this system activities are represented as arrows connecting two
nodes. Tail end of the arrow represents the commencement of the activity and Head of the
arrow represents the completion of that activity. Description of the activity
activit is represented
on top of the arrow and its time or duration is represented at the bottom side of arrow.
Length of the arrow never suggests the magnitude of work or the time duration required.
2. Activity on Node: In this system activities are represented as junctions or Nodes. Arrows
connecting two different nodes or activities signifies the relationship between them in
terms of sequence and dependency. Even in this system length of the arrow has no
significance.
1. A network should have only one initial event / Node and only one final event/node.
2. Initial event/Node will have only successor activity or outgoing activities. Final
event/Node will have only predecessor or incoming activities.
3. Time flow is usually shown from left to right.
4. Interdependencies should be properly shown and network logic is to be
maintained.
5. No event can occur twice i.e., network looping is not permitted.
event has occurred and event cannot
6. No activity can start until tail event can occur until all
activities leading are complete.