MANAGEMENT PLANNING AND

CONTROL SYSTEM (MPCS)

L & T CONSTRUCTION

MMH - ICDelhi Cluster

OBJECTIVE OF THE SESSION… What is Planning

Why is it required

Planning process

Resource schedules

Planning – Frame work

Schedules for Planning & Monitoring

WHAT IS PLANNING….

A process to answer basic questions like

Why?

What?

When?

Who?

Where?

How?

MANAGEMENT PLANNING

To systematically plan events

within certain time frame

with limited resources

in most economical manner , and

with total safety and quality in place

STAGES OF PLANNING

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

PLANNING – TYPES

Time planning

Material planning

Work planning

Cost planning

SCHEDULES

To manage Resources …. (5M)

Manpower

Machinery

Materials

Money

Minute (Time)

CONTROL SYSTEM

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

MPCS in

L&T

SCHEDULING SYSTEM

TENDERING SYSTEM

MONITORING SYSTEM

MANAGEMENT INFORMATION SYSTEM

TENDERING 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

TENDERING SYSTEM

Main objective is…

To assist in proper estimation of unit

rates & Pricing of tender

To provide a framework for scheduling

TENDERING SYSTEM – SCHEDULES T-0 – Construction Programme T-1 – Schedule of Invoicing T-2 – Schedule of Milestone eventsT-3 – Schedule of P&MT-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 CostsT-9 – Schedule of Over heads T-10 –Cash gap statement

SCHEDULING SYSTEM 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

MPCS SCHEDULES

CONTD……

S1 : SCHEDULE OF INVOICING

S2 : SCHEDULE OF MILESTONE

S3 : SCHEDULE OF P & M

S4 : SCHEDULE OF STAFF

S5 : SCHEDULE OF LABOUR

MPCS SCHEDULES

S6 : SCHEDULE OF MATERIALS

S7 : SCHEDULE OF SPECIALISED AGENCY

S8 : SCHEDULE OF DIRECT COST

S9 : SCHEDULE OF INDIRECT COST

S10 : SCHEDULE OF LIQUIDITY FORECAST

S0 :CONSTRUCTION PROGRAM

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

PROCEDURE STEPS

MASTER SCHEDULE SL NO Description 2008 2009

Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar April May

1 Design & Drg Appr.

2 Supply of MS Pipes

3 Coating Works

4 Pipe laying & Testing

5 Bridge at River Crossing

6 Intake-well construction

7

Sump & Pump House at IPS

8 Sump at BPT

9 Supply of Electrical items

10 Surge Vessel

11 Commissioning

S0: BASED ON MASTER SCHEDULE

S1 : SCHEDULE OF INVOICINGProjects 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 contractAmounts to include projected escalation alsoSmall value items can be clubbed into single item

SCHEDULE OF INVOICING Schedule : S1 Job No:

Client: Job Description:

Contractual Date of completion: ( All Figs in Rs. 000's)

Sl NO Item description Unit Scope Sales

RateMonth 1 Month 2 Month .. Month .. Month 12

Qty Value Qty Value Qty Value Qty Value Qty Value

Other Items

Total FTM

CUM

S2 : SCHEDULE OF MILESTONE EVENTS

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 Job No:

Client: Job Description:

Contractual Date of completion: Date:

SL NO Description of Milestone Events

Estimated Date of Completion

Projected Slippage in event of completion

Description & impact of

Problems

Action to be taken

Person Responsible

Latest estimated

completion date

Projected Slippages ( in weeks)

1

2

3

4

5

6

7

S3 : SCHEDULE OF PLANT & MACHINERIESTo 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: Job Description:

Contractual Date of completion: Date:

Sl no. Asset code A/R/S Description of item Total Qty

Required

RequirementRecd date

Exp. Release

dateReleased

date Remarks From To

S4 : SCHEDULE OF STAFF REQUIREMENTHelps 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 / de-mobilization

& monthly afterwards

SCHEDULE OF STAFF

SCHEDULE : S4 JOB NO : CLIENT : JOB DESCRIPTION :

CONTRACTUAL DATE OF COMPLETION: DATE :

SL. NO.

P.S. NO. NAME A/

R/S DIS. CADRE FUNCTION REQUIRED DATE

REPORTING DATE

EXP REL DATE

ACT RELEASE

DATEACTUAL RELEASE REMARKS

S-3 & S-4 – PROBLEMS FACED 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

S5 : SCHEDULE OF LABOUR

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 JOB NO : CLIENT : JOB DESCRIPTION : CONTRACTUAL DATE OF COMPLETION: DATE :

SL. NO. DESCRIPTION

TOTAL MAN-

MONTH1st

MONTH2nd

MONTH3RD

MONTH4th

MONTH5th

MONTH6th

MONTH7th

MONTH REMARKS

S-6 : SCHEDULE OF BULK MATERIALS

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

S-6 : SCHEDULE OF BULK MATERIALS

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 JOB NO : CLIENT : JOB DESCRIPTION :

CONTRACTUAL DATE OF COMPLETION: DATE :

SL. NO. DESCRIPTION UOM QTY 1st

MONTH2nd

MONTH3RD

MONTH4th

MONTH5th

MONTH6th

MONTH7th

MONTH REMARKS

S7: SCHEDULE OF SPECIALISED AGENCIES

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

SCHEDULE : S7JOB NO :

CLIENT : JOB DESCRIPTION :

CONTRACTUAL DATE OF COMPLETION: DATE :

SL. NO. DESCRIPTION UOM QTY DATE OF START DATE OF COMPLETION REMARKS

S-8 : SCHEDULE OF DIRECT COST & S-9 : SCHEDULE OF OVERHEADS

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

S-8 : SCHEDULE OF DIRECT COST & S-9 : SCHEDULE OF OVERHEADS

SCHEDULE OF DIRECT COST Schedule : S8 Job No:

Client: Job Description:

Contractual Date of completion: ( All Figs in Rs. 000's)

Sl NO Item description Uom Scope Unit

RateMonth 1 Month 2 Month .. Month .. Month 12

Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost

Other Items

Total FTM

CUM

SCHEDULE OF OVERHEADS Schedule : S9 Job No:

Client: Job Description:

Contractual Date of completion: ( All Figs in Rs. 000's)

Sl. NO Description Total Amount Month 1 Month 2 Month .. Month .. Month 12

Other Items

Total FTM

CUM

S-10 : CASH GAP STATEMENT

Aids in analyzing the cash flow / Working capital

requirements

Outflow should include payments made at HQ /

Cluster also

Can be updated quarterly

S10 : SCHEDULE OF LIQUIDITY DESCRIPTION

MONTHS

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

I.INVOICING - 5 5 10 20 20 15 10 8 8 6 3

DIRECT COST

5 5 7 7 10 10 8 8 5 5 4 3

INDIRECT COST

0.5 0.5 1 1 2 2 2 2 1 1 0.5 0.5

II. TOTAL COST

5.5 5.5 8 8 12 12 10 10 6 6 4.5 3.5

CASH FLOW ( I –II)

(5.5) (0.5) (3) 2 8 8 5 0 2 2 1.5 (0.5)

MONITORING SYSTEM

Objectives

Monitor projects progress in terms of

Cost

Physical progress

Contribution against targets

Initiate corrective action when required

To provide data for MIS

MONITORING SYSTEM

To be prepared every month

Cluster to review & give feedback

Weekly review meeting at site

Quarterly review meeting at Cluster

MONTHLYREPORTS

JOB COST REPORT

MONTHLY PROGRESS REPORT

PERFORMANCE REPORT

ANNEXURE V-A

RECONCILIATION

MONTHLY PROGRESS REPORTHighlights 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

What do we Infer from JCR ? 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

PURPOSE OF JCR It’s a tool to monitor financial performance of the job and highlights the areas of concern.

Timely implementation of remedial measures on area of concern.

It’s a Mid course correction : Initiate necessary proactive steps

It Identifies items which are making loss / profit

It’s a Reference document for Tendering / Contracts / Operations

JOB COST REPORT

NAME OF THE JOB :SITE CODE JOB NO. MONTH

Contractual Date of Commencement   Original Contract Value Actual Date of Commencement  

Contractual Date of Completion   Revised Contract Value

Expected Date of Completion  

RECON CODE

DESCRIPTION UNIT

JOB STATUS TO DATE ESTIMATE TO COMPLETE REVISED ESTIMATE ORIGINAL ESTIMATE FOR

REVISED QTYVARIANCE

COSTREVISED SALES

REMARKS

UNITSACTUAL

COSTUNIT COST UNITS COST

UNIT COST

UNITS COSTUNIT 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 )

Rs.

PLANNING MANAGER SITE ACCOUNTANT PROJECT MANAGER

Gross Margin

Gross Margin in %

JCR FORMAT

JCR INTERPRETATION

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

Performance Report 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

Annexure VA- Outstanding StatementInformation 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 :   DATE:  

SL NO MonthInvoice No

/ Date

Invoice Amount (Rs.)

RecoveriesNet

Amount Payable

(Rs.)

Payment Received

(Rs.)

Net Receivable

(Rs.)Remarks

Certificate receipt

SUB. CER.MOB

ADV + Int.

RET IT WCT OTH TOT IT WCT

                                 

                                 

                                 

                                 

                                 

                                 

  TOTAL                           

Bulk Material Reconciliation

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.

Quantity Reconciliation

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

THANK YOU

MPCS

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.

SCOPE

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 thatWould most reasonable be expected to occur.

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

WORK BREAK DOWN SCHEDULE

WBS reflects true Project Completion Status

MPCS

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

WBS: STRUCTURE

WBS ILLUSTRATION

WATER TREATMENT PLANT

CIVIL WORKS

AREATOR FLASH MIXER CLARIFLOCULATOR

MECHANICAL WORKS E&I WORKS

FILTER HOUSE

DESIGN & DRG

SUMP & PH

ACTIVITY 1 ACTIVITY 2 ACTIVITY 3

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

100

10 10 25 25 30

10 50 30 10

25 40 35

LEVEL 1

LEVEL 2

LEVEL3

LEVEL 4

DESCRIPTIONLEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4

WTG ACH WTG ACH WTG ACH WTG ACH

A WTP 100 5            

  A1.0 AREATOR     10          

  A2.0 FLASH MIXER     10          

  A3.0CLARIFLOCULATOR     25 5        

    A3.1 Design & Drawing         10      

    A3.2 Civil works         50 20    

     A3.1.1 Activity 1             25  

     A3.1.2 Activity 2             40 40

     A3.1.3 Activity 3             35  

        Sub-Total A3.2             100 40

    A3.3 Mechanical Works         30      

    A3.4 E&I Works         10      

        Sub-total A3.0         100 20    

  A4.0 FILTER HOUSE     25          

  A5.0 SUMP & PH     30          

    TOTAL A     100 5        

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

It’s a detailed estimate of the expected cost to be spent for successful completion of a project

It’s 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