Module -1

Management, Construction
Project Formulation and

.IN
Construction Planning and

C
N
Scheduling
SY
U
VT

Studied smart, not hard — thanks to [Link]

 Construction Project Formulation

.IN
C
N
SY
U
Construction Project Life Cycle
VT

a) Formulation stage b) Mobilization stage (c) Construction stage

• Project idea conception • Project preliminary • Planning and controlling
• Feasibility studies plan execution
• Investment appraisal • Designs and drawings • Inducting resources
• Project definition • Specifications and • Construction and commissioning
contract finalization • Final handing over to the client
2

Studied smart, not hard — thanks to [Link]

a) The Construction Formulation stage involves:
• Project Idea Conception: The initial brainstorming of a project concept,
aligning with the client’s vision and objectives.
• Feasibility Studies: Assessing whether the project is viable technically,

.IN
financially, and environmentally.
• Investment Appraisal: To determine project worthiness, & evaluate the

C
financial implications, including cost estimates & potential returns.

N
• Project Definition: Clearly defining the project scope, objectives, and

SY
requirements, forming a solid foundation for design and execution.
U
VT

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

Risks and Probability of Project Completion

The probability of successfully completing the project is minimal at the start
of the project and the risk is the highest. The probability of successful
completion (balance works) gradually increases and the risks reduce as the
work progresses. The implication of design changes in the scope of work is
lowest at the start of the project but increase exponentially as the work
progresses. 4

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
The ability of the Stakeholders to Influence the Scope of Work of a
VT

Project within Budgeted Cost

The ability of the stakeholders to influence the scope of work

of a project within a budgeted cost is the highest at the start
and progressively lowers as the project continues.

Studied smart, not hard — thanks to [Link]

Definition
Mary Parker Follett:-
Management is a art of getting thing done through people.

Nature and Characteristics of Management

.IN
It should be stable

C
It should be applicable to all kinds of organization

N
It is transparent
SY
Its approaches are to be clear and goal oriented
It should be simple yet effective
U
It should be responsible to the external elements like
VT

economic, technological, social, political etc.

It should have good planning, organizing, staffing,
directing and controlling functions
It should provide conductive atmosphere of work.
6

Studied smart, not hard — thanks to [Link]

 Scope of management
1. Production/operations management – It is nothing but the
management of all production activities in an industry. The
term operation management is now used to indicate both

.IN
production as well as service organizations. Operations
Management includes work analysis, planning, scheduling,

C
routing, quality control, inventory control, and work-study.

N
2. Financial Management: Financial Management deals with

SY
how an organization obtains funds and how it uses them to run
the organization. In other words, financial management refers
to the application of skills in the manipulation and control of
U
funds. It includes economic forecasting, cost accounting,
VT

budgeting, insurance, and financial statistics.

3. Human Resources Development: Personnel management is a
very important and growing field of management which takes
care of recruitment, placement, training, transfer, promotion,
safety, health, welfare services etc., of the employees.
7

Studied smart, not hard — thanks to [Link]

4. Marketing Management: A marketing manager once said,
"Any fool can make a product, but it takes wisdom to sell it!"
This highlights the importance of marketing, which involves
directing goods from producer to consumer by ensuring the right

.IN
product is available at the right place, quantity, price, and time.
5. Maintenance Management: Maintenance involves actions to

C
replace, repair, and service components in a manufacturing plant

N
to ensure continued operation. Maintenance management focuses

SY
on organizing resources to keep buildings, equipment, and
facilities in working condition.
U
6. Materials Management and Purchasing: In manufacturing,
VT

Men, Machines, and Materials (the 3 M's) are key inputs. While
investments in Men and Machines are mostly fixed, material
handling greatly impacts profitability. Materials typically
account for 50-85% of production costs, making them a major
budget item across industries.
8

Studied smart, not hard — thanks to [Link]

7. Transport Management: Transportation costs often exceed production and
raw material costs, especially for construction materials like sand, stone, and
bricks. In a large country like India, efficient transport management of raw
materials and finished goods is crucial for competitiveness. This includes
transportation by rail, road, air, water, along with packing and warehousing.
8. Systems Management: There is a global demand for Systems Managers who

.IN
oversee software projects from start to finish, breaking them into modules,
delegating tasks, monitoring progress, communicating with clients,

C
integrating, testing, and ensuring timely completion.

N
9. Rural Management: Over two-thirds of Indians live in villages, and
agriculture still dominates the economy despite industrialization. Managing

SY
rural resources poses a challenge for leaders in rural development, involving
water, forests, crops, cattle, manpower, transportation, cooperatives, etc.
U
10. Office management: Office management involves organizing and
overseeing office activities to ensure smooth operations. It includes managing
VT

staff, resources, communication, and finances while maintaining records and

ensuring compliance with policies. Effective office management boosts
productivity, streamlines workflows, and creates a well-coordinated work
environment for achieving organizational goals.

Studied smart, not hard — thanks to [Link]

 Types of plans
A. Based on nature of planning

.IN
Strategic planning: Tactical planning:
These plans are done at Top level management These plans are done at lower level of
and are generally long term plans management and generally short term in nature.

C
Strategic Planning

N
Tactical Planning
1. It is long term It is short term
2. Done at top management
SY Done at lower levels of management
U
3. It consists of major goals and policies It consists of use of facilities and
of an organisation and resources and resources.
VT

facilities to accomplish the goals.

5. It is less detailed, focuses only on It is more detailed, focuses on day to day
long term goals. operations and activities of the
organisation
6. Define goals Define how the goals can be achieved.

10

Studied smart, not hard — thanks to [Link]

B. Based on user plans are classified.
1. Single use plan.
• The single use plans are developed to achieve a

.IN
specific end. After reaching that target, that plan
becomes useless.

C
• Example- Cricket world cup, which is onetime

N
event in respective country
SY
Number of plans under single use plans.
U
i. Programmes
VT

It is compressive plan which includes a complex set

of goals, procedures, rules and resource for putting
a plan into action.
Example- Marriage programme.
11

Studied smart, not hard — thanks to [Link]

ii. Budgets-
Budgets are plans for using resources. It is a plan for a given
period of time in future and expressed in financial units. Thus
it is a quantitative expression of a plan. Budgets serves as good
purpose, as a tools for planning and controlling. Budgets are
prepared for a definite future periods and they aim at achieving

.IN
objectives. Budgetary estimations can be made for all
resources like manpower requirement, machines and tools

C
requirement, money required, time etc. budget are prepared for

N
sales, purchase, materials, labour, various expresses etc.

SY
iii. Projects
Projects are parts of large programmes, which can be
U
identified as a clear group of activities with definite objectives
and time frame for completion and which requires specialized
VT

abilities. Project have definite objective like new product

development, manufacturing of new machine, construction of
a building, installation of a plant etc. and they definite starting
and ending points of completion time. Project cannot be
extended behand their completion time as it may result
escalation in costs significantly that results in huge loss. 12

Studied smart, not hard — thanks to [Link]

iv. Schedules:
A schedule is a time table of work, it specified the date and
time when a task is begin & when it is to be completed.
Schedules are to be flexible as realistic time estimation with

.IN
accuracy is difficult and hence the flexibility by giving

C
maximum and minimum time period for complex activities
where estimation is difficult. Schedules also help mangers

N
in planning for materials and manpower resources for each
SY
task, when they are needed, in how much quantity and how
they need to be sequenced.
U
VT

v. Methods
These are sub-units of procedure and explain how a
particular step of procedures is to be performed. They are
several methods for accomplishing each phase of work
within a procedure.
13

Studied smart, not hard — thanks to [Link]

2. Multi use plans
These plans are used to handle events that occurs frequently. They save
time for managers since they take decisions based on standing plans in
each similar situation.
i. Objectives

.IN
The specified targets to be achieved in the organisation. All the
management functions are directed towards attainment of goals.

C
ii. Strategies

N
Strategic plans are the plans that apply to the entire organisation. Strategies
establish overall objectives of the organisation and they are based on

SY
compressive analysis of various internal and external environmental
factors that may have influence on the organization. It helps the
U
organisation in making right decision at right time.
iii. Policies
VT

It is a board statement formulated to provide guidance in decision making.

Koontz defined policy as a general statement of understanding which
guides the thinking and action of managers in decision making. They
provide a framework within which decisions are made.
Example- HRM policies like recruitment policy, promotion policy,
increment policy, transfer policy etc.
14

Studied smart, not hard — thanks to [Link]

iv. Procedure
A procedure is systematic way of handling regular events
or respective tasks. Policies are subdivided and stated in

.IN
terms of procedures.

C
Procedure are used in all functional areas of management.

N
v. Rules

SY
A rules is a plan which prescribes the course of action that
explicitly defines what is to be done under a given
U
circumstance. Rules must be followed precise and adhered
VT

strictly. They describe what should be done or what

should not be done in a given situation.
Example – No smoking, entry restricted etc.

15

Studied smart, not hard — thanks to [Link]

 Work breakdown structure
• These are incremental and hierarchical decomposition
of the project phases. It is a tree like structure and it

.IN
shows the description of the jobs for completion of
the project. It is also called as Top-Down diagram.

C
• The main jobs are broken down into number of small

N
manageable units. Depending upon size, time and
SY
effects required for completion.
• WBS represent task oriented family tree it can be
U
used for planning, scheduling, cost estimation,
VT

monitoring and controlling.

• It progresses down ward it means the work flow from
general to specific which is called as whole to part.

16

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

17

Studied smart, not hard — thanks to [Link]

Break down in to following stages-
• Project

.IN
• Subproject

C
• Task

N
• Subtask
• Work package
SY
U
VT

18

Studied smart, not hard — thanks to [Link]

Techniques used in project planning and scheduling.
1. Bar charts/Gantt charts
2. Histogram
3. Mile stole chart
4. Line of balance chart

.IN
5. Network techniques
1. Gantt chart

C
• It was first introduce by Henry Gantt in 1910. Bar charts represent pictorial presentation of
activities and time. The length of each bar represents activity completion duration in a

N
construction project.

SY
• The beginning of bar represent start time of activities, whereas finishing (end) represents
finishing time of activity.
• The width of bar has no significance.
U
VT

19

Studied smart, not hard — thanks to [Link]

 Preparation of network diagram - event and
activity based
 It is improvement over milestone cart and in this techniques all the limitations of bar

.IN
charts can be eliminated.
 Network is a pictorial representation of activities in which activity inter-relationship

C
is maintained during parallel and serial activities and if required, dummy’s may

N
introduced.
There are two types of network diagram

SY
1. Activity on arrow diagram (A-O-A network)
2. Activity on node diagram (A-O-N network)
U
 There is no use of dummy on A-O-N system.
VT

 Using network diagram, project duration, critical path and floats/slack, can be
computed either using PERT or CPM analysis.
 PERT uses only A-O-A network, whereas CPM may use A-O-N or A-O-A.

20

Studied smart, not hard — thanks to [Link]

 1. Events-
An event is either start or completion stage of activity. It is an instantaneous stage which
occurs either in the beginning or at the finishing of the activity.
Event does not require any time or resource for occurrence.
Example- 1. Class completed.

.IN
A
2. Slab casted
3. Excavation completed. i j
4. Class started

C
N
i- Tail event/ start event for activity A
j- Head event/finish event for activity A

SY
Event may be represented by circle, square, oval, rectangular.
U
1. Activity -
VT

Activity is the actual performance of work, and is required time and resource both for
completion. It is the work under progress.
In A-O-A network, activity is represented by arrow, where as in A-O-N network, activity is
represented be node.
Example – 1. Excavation being carried out.
2. Building construction going on
3. Cricket match is being played etc.

21

Studied smart, not hard — thanks to [Link]

Types of activities
1. Pre-deccessor activity
A B C

.IN
A is predecer to B and is predesor to C
2. Successor activity:- B is successor to A and C is successor to B

C
3. Dual role activity

N
2

SY
B is predecessor for C but successor for A, hence has dual role. A
F
Note- There can be more than one start activities D G
U
B
(Ex- A, B & C) & there can be more than 1 1 4 5
VT

finish activities (Ex – F, G & H)

E
Note that, there can be only one start event C H
& only one finish event (5). 3

22

Studied smart, not hard — thanks to [Link]

 1. Dummy activity
Dummy is used in A-O-A network but not in A-O-N network, there are two user of dummy
Logical purpose Grammatical purpose
Dummy is used to establish interrelationship between specific According to network
objectives. rules, more than one
Ex- if activity F depends on upon completion of activity A in activity cannot have

.IN
the diagram shown below then dummy is introduce between A common starting and
and F. finishing nodes. v
Dummy does not required ay resources or any time for

C
completion. It is just relation. A
Activity A preceeds activity C & restrains the occurrence of F.

N
Activity F succeeds activity D but is restrained by occurrence B
of activity A. 2

SY
1
C
5
2
A
U
E
VT

Dummy
2
1 6
Dummy

F 3
B 3 4 1
D

23

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

24

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

25

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

26

Studied smart, not hard — thanks to [Link]

 Removal of redundant dummy:
If a dummy serves neither logical nor grammatical purpose then it should be removed such
dummier are called redundant (repetition of same sense in different word) dummies.
Guidelines for removal of dummies:-

.IN
1. If dummy is the only arrow outgoing from an event than it should be removed, after
removal of dummy, diagram remains logically and grammatically correct.

C
N
SY
U
VT

27

Studied smart, not hard — thanks to [Link]

2. If dummy is the only incoming arrow at an event then it can be
removed, provided diagram remains logically and grammatically
correct.

.IN
C
N
SY
3. If logical and grammatical purpose are already stabilised by
activities then dummy can be removed.
U
VT

28

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

29

Studied smart, not hard — thanks to [Link]

 Project Scheduling & Management

INTRODUCTION

.IN
Basically, CPM (Critical Path Method) and PERT (Programme
Evaluation Review Technique) are project management

C
techniques, which have been created out of the need of Western

N
industrial and military establishments to plan, schedule and
SY
control complex projects.
U
VT

30

Studied smart, not hard — thanks to [Link]

 Brief History of CPM/PERT
• CPM/PERT or Network Analysis as the technique is sometimes
called, developed along two parallel streams, one industrial and the
other military.

.IN
• CPM was the discovery of [Link] of [Link] Pont de Nemours &
Co. and [Link] of Remington Rand, circa 1957. The computation

C
was designed for the UNIVAC-I computer. The first test was made in

N
1958, when CPM was applied to the construction of a new chemical

SY
plant. In March 1959, the method was applied to a maintenance shut-
down at the Du Pont works in Louisville, Kentucky. Unproductive
time was reduced from 125 to 93 hours.
U
VT

• PERT was devised in 1958 for the POLARIS missile program by the
Program Evaluation Branch of the Special Projects office of the U.S.
Navy, helped by the Lockheed Missile Systems division and the
Consultant firm of Booz-Allen & Hamilton. The calculations were so
arranged so that they could be carried out on the IBM Naval
Ordinance Research Computer (NORC) at Dahlgren, Virginia.
31

Studied smart, not hard — thanks to [Link]

 DEFINITION OF TERMS IN A NETWORK
 Activity : Any portions of project (tasks) which required
by project, uses up resource and consumes time – may
involve labor, paper work, contractual negotiations,

.IN
machinery operations Activity on Arrow (AOA) showed
as arrow, AON – Activity on Node

C
 Event : Beginning or ending points of one or more

N
activities, instantaneous point in time, also called ‘nodes’
SY
 Network : Combination of all project activities and the
events
U
VT

PRECEEDING SUCCESSOR
ACTIVITY

EVENT

32

Studied smart, not hard — thanks to [Link]

Computation of activity relation

EST EFT
h i
tij j k

TEi LST LFT TEj

TLi TLj

.IN
1. Earliest start time(EST)
It is the earliest possible start time for an activity. It is equal to earliest
occurrence time of tail event of that activity.

C
EST = TEi
2. Earliest finish time (EFT)

N
It is the earliest possible finish time for an activity. For EFT, an activity should
start at EST is equal to

SY
EFT = EST + Activity duration
EFT = TEi + tij
EST & EFT are computed using forward path
U
3. Latest finish time (LFT)
VT

It is that time in which an activity may be allow to finish as late as possible

with respect to delaying the scheduled duration of project.
For an activity, LFT = Latest occurrence time of head event
LFT = TLj
4. Latest start time (LST)
For latest start, an activity should be finished as late as possible.
LST = LFT – activity duration
LST = TLj - tij
LFT & LST are computed using backward path
33

Studied smart, not hard — thanks to [Link]

5. Float
Float is associated with an activity and its significance is similar to that
of slack in events.

.IN
Float denotes the range within which starting or finishing of an activity
may vary with respect to affecting total project duration.

C
It is the maximum time which either starting or completion of an

N
activity may be delayed concerning the scheduled project duration.

SY
When FT is computed for an activity, preceding activity completes as
early as possible and the succeeding starts as late as possible.
U
FT = LFT – EFT
VT

FT = LST – EST
Total float of an activity affects preceding and succeeding activities
both

34

Studied smart, not hard — thanks to [Link]

Critical path method (CPM)
The path which connects activity with zero total float is called
critical path. It is time-wise longest path.
In critical path, all activities are critical (FT = 0)

.IN
If FT= 0, Then activity is critical and resources for such
activity are just adequate. If critical activities are delayed, then

C
total project duration will get delayed.

N
If FT > 0 (+ve), then activity is called non-critical activity or
SY
sub-critical, such activities have excess resources and if there
are delayed within the total float, then total project duration will
U
not be affected.
VT

If FT < 0 (-ve), then such activities are called super critical

which are already behand the schedule. Hence total project
duration will be delayed. In these activities resources are
inadequate.
35

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

36

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

37

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

38

Studied smart, not hard — thanks to [Link]

 Scheduling with activity time
Activity Immediate Completion
predecessors Time (week)

.IN
A - 5
B - 6

C
C A 4
D A 3

N
E A 1

SY
F E 4
G D,F 14
H B,C 12
U
I G,H 2
VT

Total …… 51

This information indicates that the total time required to complete

activities is 51 weeks. However, we can see from the network that several
of the activities can be conducted simultaneously (A and B, for example).

39

Studied smart, not hard — thanks to [Link]

 Network with ES & EF time
D[5,8] 5
2 3

.IN
7

C
4

N
1 6
SY
U
3
VT

Earliest start time rule:

The earliest start time for an activity leaving a particular node is equal to
the largest of the earliest finish times for all activities entering the node.

40

Studied smart, not hard — thanks to [Link]

 Network with LS & LF time

D[5,8] 5
2 3[7,10]

.IN
7

C
4

N
1 6

SY
U
3
VT

Latest finish time rule:

The latest finish time for an activity entering a particular node is equal to
the smallest of the latest start times for all activities leaving the node.

41

Studied smart, not hard — thanks to [Link]

 Activity schedule for our example
Activity Earliest Latest Earliest Latest Slack Critical
start (ES) start (LS) finish (EF) finish (LF) (LS-ES) path

A 0 0 5 5 0 Yes

.IN
B 0 6 6 12 6

C
C 5 8 9 12 3

N
D 5 7 8 10 2
E 5 5 SY 6 6 0 Yes
U
F 6 6 10 10 0 Yes
VT

G 10 10 24 24 0 Yes
H 9 12 21 24 3
I 24 24 26 26 0 Yes
42

Studied smart, not hard — thanks to [Link]

 IMPORTANT QUESTIONS
• What is the total time to complete the project?
– 26 weeks if the individual activities are completed on schedule.

.IN
• What are the scheduled start and completion times for each activity?

C
– ES, EF, LS, LF are given for each activity.

N
•
keep the project on time? SY
What activities are critical and must be completed as scheduled in order to
U
– Critical path activities: A, E, F, G, and I.
VT

• How long can non-critical activities be delayed before they cause a delay in
the project’s completion time
– Slack time available for all activities are given.

43

Studied smart, not hard — thanks to [Link]

 PERT Analysis (Programme evaluation and
review technique)
It is based on three time estimate for each activity.
1. Most Likely Estimate (Tm)

.IN
This is the time duration where there is a high probability of completing the task
within the given time duration.
2. Optimistic Estimate (To)

C
In this scenario, the estimate is determined considering all favorable conditions; i.e. it
is a best-case scenario. In other words, you can say that is the shortest time in which

N
you may complete the task.

SY
3. Pessimistic Estimate (Tp)
Here, estimate is determined considering all unfavourable conditions; i.e. worst case
scenario. In other words, this is the longest time the activity might require to
U
complete itself.
On the basis of three estimates, mean expected time (Te) of completion of activity is
VT

computed by taking weighted average.

𝐓𝐨 𝟒𝐓𝐦 𝐓𝐩
4. Mean expected time Te =
𝟔
𝐓𝐩 – 𝐓𝐨
5. Variance Ϭ2
𝟔
𝐓𝐩 – 𝐓𝐨
6. Standard deviation Ϭ =
𝟔

44

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

45

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

46

Studied smart, not hard — thanks to [Link]

 Precedences And Project Activity Times
Immediate Optimistic Most Likely Pessimistic EXP Var [Link]
Activity Predecessor Time Time Time TE V 

.IN
a - 10 22 22 20 4 2

C
b - 20 20 20 20 0 0

N
c - 4 10 16 10 4 2

SY
d a 2 14 32 15 25 5
e b,c 8 8 20 10 4 2
U
f b,c 8 14 20 14 4 2
VT

g b,c 4 4 4 4 0 0
h c 2 12 16 11 5.4 2.32
I g,h 6 16 38 18 28.4 5.33
j d,e 2 8 14 8 4 2

47

Studied smart, not hard — thanks to [Link]

 The complete network

.IN
2 6
(15,25)
j
(8,4)

C
a
(20,4)

N
e
(10,4)

SY
1 3 f 7
b (14,4)
(20,0)
U
g
c
VT

(4,0)
(10,4) i
(18,28.4)
4 h 5
(11,5.4)

48

Studied smart, not hard — thanks to [Link]

 Figure 8-13 The complete Network

EF=20 35
d 6

.IN
2
a (15,25) j
(20,4) (8,4)
e

C
b 43
20 (10,4)
(20,0)

N
f CRIT. TIME = 43
1 3 7
(14,4)

c
(10,4)
SY
g
(4,0)
i
U
(18,28.4)
h 5
VT

4
(11,5.4)
10 24

49

Studied smart, not hard — thanks to [Link]

 Critical Path Analysis (PERT)
Activity LS ES Slacks Critical ?

.IN
a 0 0 0 Yes

b 1 0 1

C
c 4 0 4

N
d 20 20 0 Yes

e 25
SY 20 5
U
f 29 20 9
VT

g 21 20 1

h 14 10 4

i 25 24 1

j 35 35 0 Yes

50

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

51

Studied smart, not hard — thanks to [Link]

 .IN
C
N
SY
U
VT

52

Studied smart, not hard — thanks to [Link]

 BASIS FOR
PERT CPM
COMPARISON
Meaning PERT is a project management technique, CPM is a statistical technique of
used to manage uncertain activities of a project management that manages
project. well defined activities of a project.
What is it? A technique of planning & control of A method to control cost and time.

.IN
time.
Orientation Event-oriented Activity-oriented

C
Evolution Evolved as Research & Development Evolved as Construction project

N
project

SY
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
U
Estimates Three time estimates One time estimate
Appropriate for High precision time estimate Reasonable time estimate
VT

Management of Unpredictable Activities Predictable activities

Nature of jobs Non-repetitive nature Repetitive nature
Suitable for Research and Development Project Non-research projects like civil
construction, ship building etc.
Crashing concept Not Applicable Applicable

53

Studied smart, not hard — thanks to [Link]