MANAGEMENT CONTROL OF PROJECTS

 

What is a project A PROJECT IS A

• COMPLEX

• NON-ROUTINE

• ONE-TIME EFFORT

IT IS LIMITED BY

• TIME

• BUDGET

• RESOURCES

• PERFORMANCE SPECIFICATIONS

MAJOR CHARACTERISTICS OF PROJECTS ARE

• DEFINED OBJECTIVES

• LIFE SPAN WITH BEGINNING AND END

• INVOLVES SEVERAL DEPARTMENTS AND PROFESSIONALS

• IT HAVEN’T BEEN DONE BEFORE

• HAS SPECIFIC TIME, COST AND PERFORMANCE REQUIREMENTS

MANAGEMENT CONTROL OF PROJECTS

PROJECTS – A SET OF ACTIVITIES, WHICH ARE CARRIED OUT WITH A DESIRED END RESULT.

PROJECT GOES THROUGH PHASES OF

PLANNING

IMPLEMENTING

EVALUATION

IT FOLLOWS A SET OF BUDGETED ACTIVITIES WHICH ARE SCHEMATICALLY SCHEDULED.

MANAGEMENT CONTROL OF PROJECTS

AN UNCONTROLLED PROJECT WOULD RESULT IN LOSS OF RESOURCES BOTH IN TERMS OF TIME AND MONEY

COSTS INCREASE EXPONENTIALLY WITH A LINEAR INCREASE IN THE DEGREE OF CONTROL.

KEY ISSUES IN CONTROL OF A PROJECT ARE

TIME, COST AND QUALITY OF WORK

MANAGEMENT CONTROL OF PROJECTS

OPTIMIUM TIME OF A PROJECT – IT SHOULD ENSURE

THAT THE BEST POSSIBLE WORK IS CARRIED OUT IN

THE SPECIFIED TIME.

THE WAY CONTROL IS EXERCISED SHOULD GENERATE,

POSITIVE PARTICIPATION

GOAL SEEKING

PROCESS CONTROL IN PROJECTS

CONTROL OF PHYSICAL ASSETS – INVOLVES THE SCHEDULING,

MAINTENANCE AND REAPIR OF PHYSICAL ASSETS (BOTH PREVENTIVE

AND CORRECTIVE CONTROL).

CONTROL OF HUMAN RESOURCES – HUMAN RESOURCE ACCOUNTING.

CONTROL OF FINANCIAL RESOURCES – INVOLVES

WORKING CAPITAL MANAGEMENT

BUDGETING

CAPITAL INVESTMENT DECISIONS AND CONTROLS

PHASES OF PROJECT CONTROL

PROJECT PLANNING – THE PROCESS OF DEVELOPING THE BASIS OF

MANAGING THE PROJECT INCLUDING THE PLANNING OBJECTIVES,

PROCEDURES, ORGANISATION, ROUTINES, FINANCE AND OTHER ACTIVITIES.

TECHNICAL LEVEL

OPERATIONAL LEVEL

THE FINAL PLAN – CONSISTS OF,

SCOPE

SCHEDULE

COST (TEC+OPC)

CPM – REDUCES PROJECT DURATION AT AN INCREASED COST.

PERT – PROBLEM OF UNCERTAIN ACTIVITY TIMES.

PHASES OF PROJECT CONTROL

PROJECT EXECUTION

TROUBLE REPORTS – EMPHASISE THE PROBLEMS THAT HAVE ALREADY

OCCURRED OR ANTICIPATED TO OCCUR. CRITICAL PROBLEMS ARE IDENTIFIED

AND HIGHLIGHTED.

PROGRESS REPORTS – INVOLVES THE COMPARISON OF ACTUAL AND

PLANNED SCHEDULES AND COSTS FOR THE WORK CARRIED OUT, ALSO

CONTAIN OVERHEAD ACTIVITIES THAT ARE NOT DIRECTLY RELATED TO

WORK.

FINANCIAL REPORTS – IT PROJECTS COST ACCURATELY WHERE COST

REIMBURSEMENTS ARE MADE, IT GIVES A CLEAR PICTURE OF HOW THE

FINANCIAL RESOURCES ARE BEING SPENT.

Diversification of GMR group Ferro-alloy manufacturing (1991-92)

Sugar production (1995)

Breweries (1998)

A 200-megawatt (MW) power project in Chennai (mid-1990s)

A barge-mounted power plant, the world’s first and largest, in Mangalore in late 2001.

Highways and Urban Infrastructure.

Airports

Manufacturing (agri-business, mainly sugar)

Net revenue of INR 45.67 billion in 2009-10 as compared to INR10.62 billion in 2005-06

Growth rate (CAGR) of 44 per cent.

Company’s assets were valued at INR149.34 billion in 2010.

BUSINESS PROFILE:

GMR Holdings Pvt. Ltd. Is the holding company with 2 subsidiary companies- GMR

Infrastructure Ltd. & GMR Industries (Airports) Ltd

Ownership structures has remained consistent with equity proposed to be distributed

equally among Rao, his sons and his son-in-law.

Decision making Council – Rao, Raju, Kiran, S.B & 2 independent non-family

executives.

Due to the rapid expansion of the group, Rao in 2006 hired strategy consultants

Mckinsey & Company, so as to assign roles and responsibilities to each family member.