L & T CONSTRUCTION

MMH - IC Delhi Cluster

What is Planning
Why is it required

Planning process
Resource schedules Planning Frame work Schedules for Planning & Monitoring

A process to answer basic questions like

Why?
What?

When?
Who? Where? How?

To systematically plan events

within certain time frame with limited resources in most economical manner , and with total safety and quality in place

At tendering stage On award of contract at macro and micro level While executing
Monthly planning Weekly planning at sectional level Day to day planning at individual level

It helps to monitor

Deployment of various resources Effective utilization of various resources Progress of works w.r.t plan

Monitor Project Cost

Enables to take corrective action in time

TENDERING SYSTEM

MPCS in L&T

SCHEDULING SYSTEM MONITORING SYSTEM

MANAGEMENT INFORMATION SYSTEM

 For preparation of Tenders

Identical to Scheduling system

Not used for monitoring directly. Why ? Execution In-charge not involved. So no commitment available

Resource commitments might be different at scheduling

stage Worked out details may not be sufficient for monitoring

Main objective is
To assist in proper estimation of unit rates & Pricing of tender To provide a framework for scheduling

T-0 Construction Programme T-1 Schedule of Invoicing T-2 Schedule of Milestone events T-3 Schedule of P&M T-4 Schedule of Staff T-5 Schedule of Labour T-6 Schedule of Bulk material T-7 Schedule of Specialized agencies T-8 Schedule of Direct Costs T-9 Schedule of Over heads T-10 Cash gap statement

To be done jointly by Regional Planning Office Site In charge Site Planning In-charge

To be completed before 30 days

Updated every month Unit costs & financial commitments shall not be modified during execution Performance to be evaluated against the parameters accepted

S0 : CONSTRUCTION PROGRAM S1 : SCHEDULE OF INVOICING

S2 : SCHEDULE OF MILESTONE
S3 : SCHEDULE OF P & M S4 : SCHEDULE OF STAFF S5 : SCHEDULE OF LABOUR
CONTD

S6 : SCHEDULE OF MATERIALS S7 : SCHEDULE OF SPECIALISED AGENCY

S8 : SCHEDULE OF DIRECT COST

S9 : SCHEDULE OF INDIRECT COST S10 : SCHEDULE OF LIQUIDITY FORECAST

Most important schedule Runs through the execution process of the project Provides inputs for all other schedules Forms the basis for micro planning at site To be updated every month to reflect the progress achieved & corrective actions

Study Scope of work

Decide sequence of construction and method Prepare WBS for the Project Study time schedule as per Contract Agreement Prepare bar chart assuming Most likely time period

SL NO Description

2008

2009 May

Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar April 1 2 3 4 5 6 7 8 9 10

Design & Drg Appr. Supply of MS Pipes Coating Works Pipe laying & Testing

Bridge at River Crossing

Intake-well construction Sump & Pump House at IPS Sump at BPT Supply of Electrical items Surge Vessel Commissioning

11

Projects month wise invoicing amount

Used as basis for monitoring progress invoicing

For Lump-sum contracts, amount to be arrived based on stage payment terms of contract Amounts to include projected escalation also Small value items can be clubbed into single item

SCHEDULE OF INVOICING
Schedule : S1 Client: Contractual Date of completion:
Item description Sales Rate Month 1 Qty Value Month 2 Qty Value Month .. Qty Value

Job No: Job Description: ( All Figs in Rs. 000's)

Month .. Qty Value Month 12 Qty Value

Sl NO

Unit Scope

Other Items Total FTM CUM

Indicates important contractual milestones To include important events requiring external

agency interface
Helps in understanding & monitoring the project progress at a glance

SCHEDULE OF MILESTONE ENENTS

Schedule :S0 Client: Contractual Date of completion: Job No: Job Description: Date:

Description of SL NO Milestone Events

Estimated Date of Completion

Projected Slippage in event of completion

Description & impact of Problems

Action to be taken

Latest Person estimated Responsible completion date

Projected Slippages ( in weeks)

1 2 3 4 5 6 7

To ensure mobilization of right P&M at right time Compiled S-3 schedule at cluster helps management in deciding
Inter-site mobilization External hiring New procurement

Forms the basis for de-mobilization plan

To be updated fortnightly during mobilization / de-

mobilization & monthly afterwards

SCHEDULE OF PLANT & MACINERY

Schedule :S3 Job No:

Client:
Contractual Date of completion: Sl no.

Job Description:
Date: Requirement Exp. Released Recd date Release Remarks date date From To

Asset A/R/S Description of item code

Total Qty Required

Helps in timely mobilization of required staff

Compiled S-4 schedule at Cluster helps management in

deciding
Inter-site transfers Short term recruitment (Incase it is required) Permanent recruitment

Forms the basis for de-mobilization plan To be updated fortnightly during mobilization / demobilization & monthly afterwards

SCHEDULE OF STAFF
SCHEDULE : S4 CLIENT : CONTRACTUAL DATE OF COMPLETION:
SL. P.S. NO. NO. A/R/ DIS. CADRE S

JOB NO : JOB DESCRIPTION : DATE :

REQUIRED REPORTING EXP REL DATE DATE DATE ACT RELEASE DATE ACTUAL REMARKS RELEASE

NAME

FUNCTION

 Not received in time Not adhering to schedule dates All details not filled Requirement exaggerated Model & capacity not described properly Different formats used

Send every month in time Analyse & inform in advance any change in dates in unavoidable cases Fill in all details Give actual requirement Check the details before sending to Cluster Use standard formats

Helps in stage wise mobilization of labour

To ensure that there are no abnormally high peaks /

troughs in the requirement

To plan the housing & temp. infrastructure

For large projects, category wise histogram may be

required
Can be updated quarterly

SCHEDULE OF LABOUR REQUIREMENT

SCHEDULE : S5 CLIENT : CONTRACTUAL DATE OF COMPLETION: SL. NO. JOB NO : JOB DESCRIPTION : DATE :

DESCRIPTION

TOTAL 1st 2nd 3RD 4th 5th 6th 7th MANMONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH

REMARKS

To ensure availability of essential materials to suit S-0

Shall include all A & B category materials in ABC

analysis To include critical items like imported / specially manufactured items Best possible rates & terms from right source Surplus materials from other sites

Optimum stock levels Separate list for Formwork, Structural steel for giving item wise break-up Factors like monsoon, union budget and other local factors shall be considered Separate list for Client supply Qty. to include wastage, rolling margin etc.. Can be updated quarterly

SCHEDULE OF MATERIALS REQUIREMENT

SCHEDULE : S6 CLIENT : CONTRACTUAL DATE OF COMPLETION: SL. DESCRIPTION UOM QTY NO. 1st MONTH JOB NO : JOB DESCRIPTION : DATE : 2nd 3RD 4th 5th 6th 7th REMARKS MONTH MONTH MONTH MONTH MONTH MONTH

This schedule lists the activities which are to be carried out by specialist agencies. Specialist work includes water proofing, insulation, false ceiling, testing works etc. Helps in Mobilisation of special agencies on time Finalisation of specifications, scope etc. in time

SCHEDULE OF SPECIALISED AGENCIES

JOB NO : SCHEDULE : S7 CLIENT : CONTRACTUAL DATE OF COMPLETION: SL. NO. DESCRIPTION UOM QTY DATE OF START JOB DESCRIPTION : DATE : DATE OF COMPLETION REMARKS

Projects the total cost of project at the scheduling stage Break-up of Accepted Cost Estimate

Temporary / Enabling structure cost can be deferred in

proportion to invoicing

Cost of items shall include projected escalation based on

past / expected trends

On client supply materials no escalation to be considered

Cost of P&M used specifically for particular item of work

to be considered in direct cost & not in overheads

S-8 & S-9 is the basis for original estimates column in JCR

SCHEDULE OF DIRECT COST

Schedule : S8 Client: Contractual Date of completion:
Item description Unit Rate Month 1 Qty Cost Month 2 Qty Cost Month .. Qty Cost

Job No: Job Description: ( All Figs in Rs. 000's)

Month .. Qty Cost Month 12 Qty Cost

Sl NO

Uom Scope

Other Items Total FTM CUM

SCHEDULE OF OVERHEADS
Schedule : S9 Client: Contractual Date of completion: Job No: Job Description: ( All Figs in Rs. 000's)

Sl. NO

Description

Total Amount

Month 1

Month 2

Month ..

Month ..

Month 12

Other Items Total FTM CUM

Aids in analyzing the cash flow / Working capital

requirements
Outflow should include payments made at HQ / Cluster also Can be updated quarterly

MONTHS

DESCRIPTION
MTH1 MTH2 MTH3 MTH4 MTH5 MTH6 MTH7 MTH8 MTH9 MTH10 MTH11 MTH12

I.INVOICING

10

20

20

15

10

DIRECT COST

10

10

INDIRECT COST

0.5

0.5

0.5

0.5

II. TOTAL COST

5.5

5.5

12

12

10

10

4.5

3.5

CASH FLOW ( I II)

(5.5)

(0.5)

(3)

1.5

(0.5)

Objectives Monitor projects progress in terms of Cost

Physical progress
Contribution against targets

Initiate corrective action when required

To provide data for MIS

To be prepared every month

Cluster to review & give feedback

Weekly review meeting at site

Quarterly review meeting at Cluster

MONTHLY PROGRESS REPORT

JOB COST REPORT

MONTHLY REPORTS

PERFORMANCE REPORT

ANNEXURE V-A

RECONCILIATION

Highlights of progress of works achieved during the month and cumulative. The report includes Monthly Highlights Physical Progress Financial Progress

Progress Photographs
Safety & Quality Statistics Constraints

JOB COST REPORT

 Cost incurred till date for various project activities

Estimated cost for the balance works Revised overall cost estimate for the project

Revised Profit Margin from the Project

Variance of cost w.r.t ACE

 Its a tool to monitor financial performance of the job and highlights the areas of concern. Timely implementation of remedial measures on area of concern. Its a Mid course correction : Initiate necessary proactive steps

It Identifies items which are making loss / profit

Its a Reference document for Tendering / Contracts / Operations

JCR FORMAT
NAME OF THE JOB :
SITE CODE JOB NO. MONTH

JOB COST REPORT

Contractual Date of Commencement Actual Date of Commencement Contractual Date of Completion Expected Date of Completion

Original Contract Value Revised Contract Value ORIGINAL ESTIMATE FOR REVISED QTY

JOB STATUS TO DATE ESTIMATE TO COMPLETE

RECON CODE DESCRIPTION UNIT UNITS ACTUAL UNIT COST UNITS COST COST UNIT COST

REVISED ESTIMATE

VARIANCE REVISED REMARKS COST SALES

UNITS

COST UNIT COST

UNIT

COST

UNIT COST

TOTAL COST FOR WORKS OVERHEADS

TOTAL COST OF PROJECT

Estimated Site Contribution on Completion (Rev. Cont. Value Rev. Cost. Estimate ) Gross Margin Gross Margin in % Rs.

PLANNING MANAGER

SITE

ACCOUNTANT

PROJECT MANAGER

A ) Revised Estimate ( revised qty) Cost Incurred + Cost estimate for balance qty B) Original Estimate ( revised qty) Revised Qty X ACE Unit Rate C) Variance ( B-A) Original Estimate Revised Estimate D) Profit = RCV Revised Estimate

Information provided by this statement includes Monthly & Cumulative Invoicing ( Budget Vs. Act)

Work in Progress
Collection Age wise outstanding Break-up

Funds Requirement by Site

Working Capital Details Monthly and Cumulative Cost details Staff & workmen Strength Staff Productivity Financial Parameters

Information provided by this statement includes Month wise billing details Cumulative Billing Deductions break-up Payment Collected Net Receivables TDS Certificate Age wise outstanding detail

ANNEXURE VA
JOB NO:

PROJECT : Invoice Amount (Rs.)

SL NO Month Invoice No / Date SUB. CER. MOB ADV + Int. RET Recoveries

DATE:
Certificate receipt

IT

WCT

OTH TOT

Net Payment Net Amount Received Receivable Remarks Payable (Rs.) (Rs.) (Rs.)

IT

WCT

TOTAL

Consumption of materials is checked with respect to

Norms or Design
Ensures that desired quantity of material is consumed

into the product to get required quality

Control on wastages ,excess consumption and theft

Rolling Margin to be accounted in case of Steel.

Reconciles the work done quantity paid to various agencies w.r.t quantities certified by Client or w.r.t

approved drawings.

Assists in taking corrective action for any variations.

REMEMBER
Prepare look ahead plan w.r.t front availability Anticipate resource requirement in advance Study Drawing Workout material requirement

Make redirection and catch-up plan

Concentrate of Productivity

SCOPE
It defines total work content of the project
It ensures that the work undertaken is desired and necessary

All undesired and unnecessary work is eliminated.

Scope management It ensures that only the optimum amount of work is undertaken in order to deliver the project successfully.

MPCS

OPTIMISTIC TIME

The minimum time for completion of an activity

PESSIMISTIC TIME

The maximum time for completion of an activity

MOST LIKELY TIME

The probable time for completion of an activity that Would most reasonable be expected to occur.
MPCS

WORK BREAK DOWN SCHEDULE

WBS represents systematic and logical breakdown of Project WBS is a task oriented family tree Lowest level of WBS is Work Package. At this level work is assigned ; time duration & cost is estimated

WBS reflects true Project Completion Status

WBS: STRUCTURE
Level 1 The top-most level of WBS is single task which is the project Level 2 This depends on the type of the project Number of WBS Levels Too many levels make the control and execution of project difficult Too few levels will not allow proper assignments and control. Decompose the task upto Work Package level
MPCS

WBS ILLUSTRATION
WATER TREATMENT PLANT

100

AREATOR

FLASH MIXER

CLARIFLOCULATOR

FILTER HOUSE

SUMP & PH

10

10

25

25

30

DESIGN & DRG

10

CIVIL WORKS
50

MECHANICAL WORKS
30

E&I WORKS
10

ACTIVITY 1
25

ACTIVITY 2
40

ACTIVITY 3
35

LEVEL 2

LEVEL 1

LEVEL 4

LEVEL3

DESCRIPTION WTP

LEVEL 1
WTG ACH

LEVEL 2
WTG ACH

LEVEL 3
WTG ACH

LEVEL 4
WTG ACH

A A1.0

100

5
10

AREATOR

A2.0
A3.0 A3.1 A3.2 A3.1. 1 A3.1. 2 A3.1. 3 A3.3 A3.4 A4.0

FLASH MIXER
CLARIFLOCULATOR
Design & Drawing Civil works

10
25 5 10 50 20 25

Activity 1

Activity 2
Activity 3

40
35

40

Sub-Total A3.2
Mechanical Works E&I Works

100
30 10 100 25 20

40

Sub-total A3.0 FILTER HOUSE

A5.0

SUMP & PH

30
100 5

TOTAL A

JCR INPUTS
Recon Code wise activity details

Cost Statement
Quantities paid to Sub-contractors MIB Details ETC Quantity and unit rate ACE Details

ACE : Accepted Cost Estimate

Its a detailed estimate of the expected cost to be spent for successful completion of a project Its a yard stick for measuring the profitability of a project. Consists of two parts: Direct Cost & Indirect Cost It enables site management to monitor the profitability of the project by comparing it with JCR. ACE has to be prepared within 1 month from the date of receipt of LOI / Work Order from the Client

SITE

ENGINEER'S

REPORT

TO

THE

OFFICE:

Sub: High Priority Sir,

"Steel roof and column already erected at site, kindly send us the foundation drawings urgently."

Regards, Site Engineer