Construction Management .pptx

CONSTRUCTION MANAGEMENT AND
ENTREPRENEURSHIP (18CV 61)
MODULE 01
MANAGEMENT

Course Outcomes
At the end of the course, the student will be able
to;
• Understand the Construction Management
Process.
• Understand and solve variety of issues that are
encountered by very professional in
discharging professional duties.
• Fulfill the professional obligations effectively
with global outlook.

MODULE 1
• Management: Characteristics of management,
functions of management, importance and purpose of
planning process, types of plans
• Construction Project Formulation: Introduction to
construction management, project organization,
management functions, management styles
• Construction Planning and Scheduling: Introduction,
types of project plans, work breakdown structure, Grant
Chart, preparation of network diagram- event and
activity based and its critical path-critical path method,
concept of activity on arrow and activity on node.

MANAGEMENT AS SCIENCE
The essential elements of science,
 Systematized body of knowledge
 Continuous observation, inquiry, experimentation and
research.
 PERT, CPM, & MBO

• Science
a) Is a systematized body of Knowledge
b) Relates to an event or phenomena
c) Contains general truth
d) Offer explanations pertaining to past
situations from which conclusions are drawn
and which forms the basis of future planning.

MANAGEMENT AS AN ART
• Individual or group of people can be
organized.
• It requires a vast knowledge and certain
innovating, initiating, implementing and
integrating skills in relations to goal, resource,
techniques and results.

MANAGEMENT AS AN ART
The main elements of an art are,
 Personal Skills
 Application of knowledge
 Creativity
 Constant practice aimed at perfection

CHARACTERISTICS
 Management is Universal Application
 Management is dynamic
 Management is group of managers
 Management is goal oriented
 Management is a social process
 Management is a continuous process
 Management is intangible

FUNCTIONS OF MANAGEMENT
 Planning
 Organizing
 Staffing
 Directing
 Controlling

FUNCTIONS OF MANAGEMENT
Planning •Defining Organization Vision & Mission
•Setting Goals & Objectives Strategizing
•Plan of Action to Achieve Goals.
Organizing •Formulate Organizational Structure Resource Allocation
•Job Design
Staffing •Man power planning, Recruitment, selection and placement,
Training and development, Remuneration, Promotion and
transfer
Leading/ Directing •Leadership & Direction
•Motivation
•Coordination & Communication
Controlling •Process & Standards
•Review & Evaluation
•Corrective Action

IMPORTANCE
 Achievement of group goals
 Optimum utilization of resources
 Fulfillment of social obligations
 Economic growth
 Stability
 Human development
 Meets the challenge of change

PLANNING
• Planning is a function that determines in advance
WHAT should be done.

PLANNING
• The beginning process of management is Planning.
• Process of accomplishment.

IMPORTANCE OF PLANNING
Without planning, business decisions would become difficult.
planning is the beginning of all other functions of management.
1. It overcomes uncertainity and change and minimizes risk.
2. It facilitates effective control.
3. It focuses attention and concentration only on the objectives
of enterprise.
4. It makes economic operation and leads to success.
5. It forms the bridge between the present and the future.

PURPOSE OF PLANNING
Planning is the beginning of all other functions of management.
So main purpose of planning is:
1. To select from many available alternatives so as to achieve
the objectives of the enterprise , economically, effectively
and efficiently.
2. To direct all other functions of management.
3. To set up the goals of an enterprise in perspective , within
the environment.
4. To help planned goals of an enterprise to break-up into more
easily handlable additive-segmented goals.
5. To form the basis for budget .

6. To forecast the future to avoid uncertainity and change.
7. To provide effective control.
8. To search for alternatives and adopt the best way of
accomplishing the work and
9. To focus the vision on the objectives and goals.

PROCESS OF PLANNING
The steps involved in planning are as follows:
BEING AWARE OF OPPORTUNITIES: This is very first step
and starting point for planning. Once we are aware of
opportunities, we can think of setting realistic objectives.
ESTABLISHING OBJECTIVES: It is very important to
establish objectives for the entire enterprise and the objectives for
each subordinate work units. That is the major objectives are
broken into departmental and individual objectives. It is a very
crucial step in planning.
DEVELOPING PLANNING PREMISES: The third step in
planning is to establish planning premises.

•It is the process of creating assumptions about the future on the
basis of which the plan will be ultimately formulated.
•Planning premises are important as they reveal facts and
information regarding to the future such as:
1. Economic conditions,
2. production costs competition,
3. Availability of material
4. Resources and capital
5. Government policies
6. Population trends etc.
There are three types of planning premises:
Internal and external premises
Tangible and intangible premises
Controllable and uncontrollable premises

Internal premises are premises within the organization. Some of
the examples are policies, forecasts,investment,availability of
equipment,capabality of work force, funds flow etc.
External premises are premises outside the organization which
includes government policies, technological changes, business
environment, economic conditions, population, buying power,
political stability,sociological factors, demand etc.
Tangible premises are the measureable premises such as
population, investment, demand etc.
Intangible premises are those which cannot be quantitatively
measureable such as business environment, economic conditions,
technological change etc.

Some of the premises are controllable like, technical man power,
input technology, machinery, financial investment etc.
Some other premises like, strikes, non-availability of raw
material ,change in government
Policies,socio-economic changes ,phase-shift in technology, wars
etc., are uncontrollable by the organization .
Determination of alternative course: Next step is to search and
identify some alternative courses of action. It is very rare that for
a plan there will be no alternatives. In this step alternatives are
listed.

Evaluating the alternatives and selecting the course of action:
once the alternatives are found, then the next is to evaluate them
with respect to the premises and goals a desired and best suitable
alternative is selected by comparative analysis with reference to
cost, risk, and gain etc., keeping in mind the goals and objectives.
Formulating derivative plan:
In order to complete the task, the selected plan must be translated
into programs, working plans and financial requirements in the
sub-units. These sub-derived plans from main plan are termed as
derived plans from main plan are termed as derivative plans.

Monitoring and controlling the plan:
This is the last step in planning. Each activity of plan is
monitored on a continuous basis and if any deviation or shortfall
is noticed, then the manager will initiate suitable corrective
action.

TYPES OF PLANS
Based on Nature of Planning, the planning is
classified as
1. Strategic Planning ( Long range Planning)
2. Tactical Planning ( Short range Planning)

TYPES OF PLANS
Strategic Planning Tactical Planning
1. It is long term 1. It is Short term
2. Done at management 2. Done at lower levels of management.
3.It consists of major goals and policies of
an organization and resources and
facilities to accomplish the goals.
3. It consists of use of facilities and
resources.
4. It is less detailed, focuses only on long
term goals.
4.It is more detailed since it caters to day
to day operations and activities of the
organization.
5. It is based on long term goals and is
more uncertain.
5. It is based on performance and less
uncertain.

TYPES OF PLANS
Standing plans help an enterprise in the following ways:
• (i) Standing plans help in achieving co-ordination in
the enterprise. These plans bring consistency,
uniformity and unity in efforts.
• (ii) Senior executives are able to delegate their work
to subordinates since procedures, rules, regulations
etc. have been laid down for taking necessary
decisions.
• (iii) These plans help in achieving goals even if these
are vague, complex or multi-dimensional. The
policies, methods, rules, procedures etc. provide
ready frames of reference whenever some difficulty
arises in taking decisions.

• (iv) Standing plans are formed after a lot of thinking,
discussions and arguments. Whenever decisions are
needed to be taken, these plans help in quick decision
making. These plans are great labour saving devices
as they provide frames of references for tackling
recurring situations.
• (v) These plans help in better administrative control.
They provide rational bases for evaluating the results
of various efforts put by different persons working at
various levels of the enterprise.

Single-Use Plans:
• These plans are made for handling non-recurring
problems. Single-use plans are also referred to as
‘specific plans’ since these are meant to solve a
particular problem.
• These plans are formulated to handle non-repetitive
and unique problem. These plans cannot be used
again and again; these become obsolete after
achieving their purpose.
• The examples of these plans are: projects, budgets,
programmes.

CONSTRUCTION PROJECT
FORMULATION
Introduction to construction management(CM)
Construction management is application of knowledge, skills,
tools and techniques to project activities requirements.
Management of a construction project includes:
1. Identification of requirements.
2. Updating of needs, concerns, expectation of the stake holders.
3. Setting and maintaining active communication with stake
holders.
4. Balancing of project activities/ inputs such as Scope , quality,
Time schedule, Budget, Resources and associated risks.

In any construction Project the two basic
ingredients needed are
1. Material Resources
2. Man power resources

 Construction Management is both an art and a science, and is
something that is usually quite hard to do. It is hard because
one has to look at a broad range of variables, and try and guess
what effect each variable will have on a construction project.
For example, a construction manager in the middle of a project
will have to take into account the following:
 the weather,
 the availability of construction workers who may be sick or
may not feel like showing up for work,
 the fact that some materials are out of stock just when they are
needed,

 the availability or non-availability of key equipment like
cranes,
 changes made to the existing design by architects and clients
the previous evening,
 juggling the work of 20 or more different trades at the same
time,
 surprise discoveries of electrical cables below the ground that
no-one knew about,
 inspections and permitting delays by government authorities
It is these difficulties that make it both extremely challenging, as
well as extremely rewarding if done right.

 Construction management is best done by people with a
detailed knowledge of building construction, such as civil
engineers or architects.
 However some aspects of this work, such as financial planning
or procurement, can be done by people who do not have a
construction background.
 With enough training and experience, a layman can gain
enough expertise to work as a construction project manager.
 Construction management can be performed by different
agencies in a project.

 It can be done by the contractors working on the project, by
the owners of the project, by independent consultants hired by
the owners, by the designers of the project, or by the investors
in a project.
The main aspects of construction management are:
1. construction scheduling
2. quality control
3. contract management
4. procurement management
5. construction finance management

Project management functions
Four core functions of project management are:
1. Scope
2. Time
3. Cost
4. Quality
1. Scope which defines the boundaries of the project and what is
outside those boundaries. The boundaries are typically
defined in terms objectives, deliverables and resources ( e.g.,
time, personnel, money)
2. Time which involves establishing a timeline for completion
of the project including deadlines, benchmarks and
milestones.

3. Cost which is the amount of money that will be required to
complete the project successfully.
4. Quality which refers to the ability of a process or product to
satisfy both stated and implied needs, with those needs being
defined by the stakeholders.

Management styles
What is Management Style ?
• Every leader has a unique style of handling the employees
(Juniors/Team). The various ways of dealing with the
subordinates at the workplace is called as management style.
• The superiors must decide on the future course of action as per
the existing culture and conditions at the workplace. The
nature of employees and their mindsets also affect the
management style of working.
Different Management Styles
1. Autocratic Style of Working
 In such a style of working, the superiors do not take into
consideration the ideas and suggestions of the subordinates.

 The managers, leaders and superiors have the sole
responsibility of taking decisions without bothering much
about the subordinates.
 The employees are totally dependent on their bosses and do
not have the liberty to take decisions on their own.
 The subordinates in such a style of working simply adhere to
the guidelines and policies formulated by their bosses. They do
not have a say in management’s decisions.
 Whatever the superiors feel is right for the organization
eventually becomes the company’s policies.
 Employees lack motivation in autocratic style of working.

2. Paternalistic Style of Working
 In paternalistic style of working, the leaders decide what is
best for the employees as well as the organization.
 Policies are devised to benefit the employees and the
organization.
 The suggestions and feedback of the subordinates are taken
into consideration before deciding something.
 In such a style of working, employees feel attached and loyal
towards their organization.
 Employees stay motivated and enjoy their work rather than
treating it as a burden.

3. Democratic Style of Working
 In such a style of working, superiors welcome the feedback of
the subordinates.
 Employees are invited on an open forum to discuss the pros
and cons of plans and ideas.
 Democratic style of working ensures effective and healthy
communication between the management and the employees.
 The superiors listen to what the employees have to say before
finalizing on something.

4. Laissez-Faire Style of Working
 In such a style of working, managers are employed just for the
sake of it and do not contribute much to the organization.
 The employees take decisions and manage work on their own.
 Individuals who have the dream of making it big in the
organization and desire to do something innovative every time
outshine others who attend office for fun.
 Employees are not dependent on the managers and know what
is right or wrong for them.

5. Management by Walking Around Style of Working
 In the above style of working, managers treat themselves as an
essential part of the team and are efficient listeners.
 The superiors interact with the employees more often to find
out their concerns and suggestions.
 In such a style of working, the leader is more of a mentor to its
employees and guides them whenever needed.
 The managers don’t lock themselves in cabins; instead walk
around to find out what is happening around them.

Project formulation
 Project formulation is the systematic development of a project
idea for the eventual purpose of arriving at an investment
decision.
 It involves step-by-step investigation and development of a
project.
 It is a process involving the joint efforts of a team of experts.
 Each member of the team must be fully familiar with the broad
strategies, objectives and other aspects of the project.
A general set of information given in project reports is listed
below:
 General information
 Project description

 Market potential
 Capital costs and sources of finance
 Assessment of working capital requirement
 Other financial aspects
 Economic and social variables
 Project implementation

Project organization
 A project is organized to achieve its mission by pre-determined
objectives. Project organization is made during the project
initiation stage and it comes into existence prior to start of the
planning stage.
 Organization enables a group of people working together with
divided tasks and responsibilities, to co-ordinate their activities
in a proper manner in order to achieve goals.
 The fast changing technology demands for cheaper, better and
faster delivery of new products, have led to new thinking
towards restructuring and empowerment of the organizations.

 Organization is a team or group of people who work together
for a particular purpose, such as a government department,
business or project.
 The Organization Structure is a framework to define the roles
and responsibilities, work flow, reporting system, and decision
making.
Purpose of organization
 Establishes the pattern of relationship by giving duties and
responsibilities to an individual or group
 Demarcates the authority, responsibility and duties of each
individual or group
 It tells each manager where his accountability lies and who are
in his sphere of command

 Provides adequate communication
 It controls the activities of individuals or groups to achieve
common objectives.
Principles of organization
1) Objectives: should be clearly defined
2) Specialization: the activities should be assigned according to
their specialization
3) Span of control: number of persons supervised by one boss
should be minimum
4) Exception: only exceptional problems should be brought to
the notice of the higher authority.
5) Scalar principle: known as chain of command. The line of
authority from chief at top to line supervisor at bottom should
be clearly defined.

6) Unity of command
7) Delegation
8) Responsibility
9) Authority
10) Efficiency
11) Simplicity
12) Flexibility
13) Balance
14) Unity of direction
15) Personal ability.

 Project based organization use various organization forms in
project. Depending upon the nature of the project and the
corporate policy we have three forms of organization
 Functional organization
 Projectised organization
 Matrix organization
 Functional Organization is the most commonly used of
organization structure in the production industry.
 The Functional Organization structure is divided into separated
roles and functions by division or department, such as project
management, engineering, procurement, construction, and
project controls.

 The Functional Organization is normally applied for a small
size of project.
 An advantage of the Functional Organization will be a
specialization, efficiency and productivity, but disadvantage
will be a lack of teamwork and difficult management control.
 Pure projectised or product form is a division of the
corporate organization, but it operates independent of the
parent organization.
 A product organization is maintained by a director or manager,
who maintains complete line authority over the product.
 The main advantages of this form are:-
 One person is accountable for achieving the organizational
goals
 There are strong communication channel

 Coordination is easy
 Encourages innovation and creativity
The main limitations are that it is temporary.
 In projectized organizations, the majority of the organization’s
resources are involved in project work and the project work is
generally completed for the benefit of an external customer.
 The project manager has increased independence and authority
and is a full-time member of a project organization and has
project resources available to them, such as project
coordinators, project schedulers, business analysts, and plan
administrators.

 The matrix organization structure is a combination of two or
more types of organizational structures, such as the projectized
organization structure and the functional organization
structure.
 The matrix organization structure takes the characteristics of
both types of organization structures. The matrix structure is a
composite of the projectized organization structure and the
functional organization structure.
 Here, the knowledge, skill, or talent of an employee is shared
between the functional department and project management
team.
 In a matrix structure, some employees usually work under
more than one boss (usually two). The first boss will be their
functional manager and the other often is a project manager.

 The authority of a functional manager flows vertically
downwards, and the authority of the project manager flows
sideways.
 Since these authorities flow downward and sideways, this
structure is called a matrix organization structure.
 In a matrix organization structure, employees may report to
many managers. Some from one section may report to one
boss while the rest report to a different boss.

 For example, let us say you are a mechanical engineer working
in a functional department. Your organization gets a project
and they need a mechanical engineer to assist the project
manager on certain tasks.
 In this case, you may be assigned to the project for a short
time, or they may transfer you there while your services are
required. If you’re assigned there for a short time, you may
have to report to two bosses.
 Working in a matrix organization can be challenging because
you have a confusing role while reporting to two bosses. To
avoid confusion and work efficiently in a matrix organization,
you must be clear on your role, responsibilities, and the work
priorities.

The matrix organization structure usually exists in large and multi-
project organizations, where they can relocate employees whenever and
wherever their services are needed.
The advantage of this organization is that it is highly flexible,
motivation can be effectively applied and it makes room for training
and development of people, it ensures effective utilization of available
resources and it adopts itself to external changes.
 The main disadvantage is this organization does not follow scalar
chain of command which leads to confusion.
 Since too many supervisors controlling an activity, work may be
delayed.
 Sometimes resources may not be available owing to other priority
projects.
.

Scheduling
• Construction scheduling is a graphical
representation which shows the phasing rate of
construction activities with the starting and
completion dates and the sequential
relationship among the various activities or
operations in a project so that work can carried
out in orderly and effective manner.

Preparation of Construction Schedule
• Project is divided into number of operations.
• The quantity of work involved has to be
calculated.
• Time must be calculated.

Uses
• It gives the quantity of work involved in each
operation.
• The actual progress of the work can be
checked.
• The project can be carried out in a systematic
manner.

Advantages of Scheduling
• Best alternative methods can be choose.
• Give clear idea regarding the required men,
materials and equipment at different stages of
work.
• Starting time of each work is known, proper
arrangements and requirements can be done
prior to the starting of the work.
• Resource utilisation is optimised.
• Actual progress of the work is monitored with
the actual plan

Advantages of Scheduling
• If there is a delay, proper remedial measures
can be taken.
• Inter-relationship of various activities at
different stages are known
• Total duration of project is known.

Gantt chart( Bar chart)
 Gantt Chart (Bar Chart) is a useful and essential tool for
planning and scheduling construction projects.
 This is a common technique used by project managers or
quantity surveyor for scheduling construction activities.
 Gantt Chart is a type of bar chart used to illustrate a project
schedule, including start and finish dates of activities and a
summary of activities of a project.

Gantt chart( Bar chart)
• A bar chart consists of two coordinate axes- one representing
the jobs or activities to be performed and other representing
the time elapsed.
• Each bar represents one specific job or activity of the project.
• The beginning and end of each bar represents the time of start
and time of finish of that activity
• Length of the bar represents the time required for completion
of that job or activity.

Steps for Preparing Bar Chart
• Divide the project into many activities.
• List out the Activities.
• Find the inter relationship among these
activities.
• Arrange the activities in a systematic way.
• Calculate the quantity of work and time
required.
• Draw it according to scale.

Work breakdown structure
 A Work Breakdown Structure (WBS) is a chart where the
project’s tasks are illustrated to reflect their relations to each
other and to the project in general. This term was created in the
USA in 1993.
 A Work Breakdown Structure WBS proposes graphical nature
that helps project managers predict results based on various
scenarios. It is often described as a result-oriented tree that
covers all project’s procedures in an organized way.
 But WBS can also be displayed as a tabular list of tasks and
elements in Work Breakdown structure Gantt Charts.

 Managers use WBS to break down their projects into easily
manageable components. It’s easy to do it, using Gantt Chart
template. These components are further decomposed until a
required person from the team can be assigned.

5 reasons to create a Work Breakdown Structure:
 It helps with correct project organization.
 Assists in describing the project scope to stakeholders.
 Helps to distribute responsibilities.
 Shows the project’s milestones and all the points to control.
 Allows estimating costs, risks and time correctly.
What is the purpose of the work breakdown structure?
The main purpose of a WBS is to reduce complicated activities to
a collection of tasks. This is important for the project manager
because she can oversee the tasks more effectively than the
complex activities. Tasks must be measurable and independent,
with clearly defined limits.

Let’s say, your task is to organize and manage a corporate outing
or team building. Using WBS, you can describe and divide tasks
as follows:
Planning: supervision, budget planning, approvement and
reconciliation, coordination issues.
Catering: menu, shopping, cooking, serving.
Area and activities: area tables and chairs, utensils, decorations
and equipment.
Participants/guests: invitations, guest list special needs.
Staff: drivers, cooks, servers, hosts, cleanup.
Entertainer: invitation, logistic issues, playlist coordination.

Types of project plans
 Planning the entire project from its inception to completion
requires a vast coverage, varied skills and different types of
plans.
 The nature of plans encountered in a typical construction
project are listed below:-
Development stage Nature of plan
Inception stage project feasibility plan
Engineering stage project preliminary plan
Implementation stage project construction plan

Project feasibility plan :-
 Planning by the client begins as soon as he gets the idea to
develop a facility to fulfill certain motives.
 Client thoughts conceptualize the cost, time and benefit
implications of the project.
 The feasibility study team examines the needs of the client and
ways to fulfill them.
 It defines the overall scope of work and breaks it down into
various task groups.

Project preliminary plan:-
 Its main aim is to provide direction to the client managers and
staff employed during the development phase of project.
The preliminary plan may include:-
 A project time schedule and the network to highlight work
dependencies and expected project completion time.
 The project defines and drawings preparation schedule.
 Resource procurement system.
 A resources preliminary forecast indicating the requirement of
men, important materials, plant and machinery.
 Forecasting of funds requirement
 Project organization and staffing requirement.

Project construction plan
 The client entrusts the construction of project facilities to the
project management team headed by project manager.
 This plan includes the contracted works plans , commissioning
plan, as applicable.
 The work programmes are derived from the targets set out in
the project plan.
Time plan:-
It depicts the schedule of project activities for completion of the
project within the specified time.

Resources plan:-
It forecasts the required input resources of men, materials,
machinery and money for achieving the project completion time
target and cost objectives.
Plan for controlling project:-
It derives the design of control system, monitoring system,
codification system and computerized information system.

Construction Management .pptx

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Construction Management .pptx

Ähnlich wie Construction Management .pptx (20)

Mehr von surekha1287

Mehr von surekha1287 (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Construction Management .pptx