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CHAPTER-01

Introduction1.1 Preamble

PurposeThis manual has been compiled to standardize proceduresand have their summaries readily available for use in thecompanys construction business. It covers activities fromthe time a construction job is awarded to the company,planning and mobilization stages, scheduling execution andmonitoring of activities, interaction with the client, work

completion stage, demobilization and finally incorporation offeedback from projects as they are completed.

1.1.2 ObjectiveProject Planning & Execution Manual has the followingobjectives: - Standardize work practices and establish benchmarks forperformance measurement. Develop capability to operate internationally with a multi-national task force.1.1.3 Scope

This manual covers the planning, execution and progressmonitoring activitiesof construction projects. Plant Services and EPC projects arenot covered inthis manual. Details related to Contract Administration andFinance arecovered under separate manuals.1.2 Overall Scheme

Each construction project has a defined scope of work,defined start and finish dates, some working constraints anda specified budget. All of the personnel who are going to beassigned to the project may not have worked together. It ison account of these challenges that project managementbecomes difficult and complex. Therefore it is necessary to

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have well defined procedures and clearly spelled outresponsibilities thatare understood by all the persons assigned to the project. Aproperly designed project

Management system enables timely response toproblems, delays, changes, and

obstacles that arise during the course of execution. It alsoindicates opportunities that might arise enabling savings incosts. Without proper project management it is quite likelythat excessive resources shall be utilized to meet the projectschedule resulting in cost overruns and depletion ofexpected margins. The planning part of the project involves

deciding what is to be done, when, by whom and with whatresources. It is just as important to have a properly designedsystem to maintain close observation of activities once theconstruction gets underway. Constant vigilance is requiredto find out what has actually been accomplished, whatremains to be done and whether resources are available todo it in time. A properly designed project managementsystem is meant to organize the working and to identifypotential problems so that they can be communicated in

time to management. This enables proper corrective actionsto be taken.Although this manual is only meant to cover the aspects ofplanning,execution and monitoring of progress a review of thebroader overall picturehas been included. Accordingly the overall sequence ofevents and the flow of information from the time ofidentification of opportunity, submission of the bid, winningof the contract, planning, controlling the execution, tillcompletion is depicted in a flow chart.

The table 1-2 on the following page explains the actions tobe taken by theindividuals designated at each of the key assignments in theoverall scheme.

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The number in the extreme left column of the table identifiesthe referred boxon the flow chart. Major activities that are tobe performed by the individuals designated to theassignments are identified in the central column while the

salient outputs from one functionary to another are listed inthe right hand column. This table and the accompanyingflow diagrams are provided here to give the reader anoverview of the overall scheme. Individual activities and therelevant form of the outputs are described and defined inthe corresponding chapters. Detailed responsibilities of theindividuals are included in the Job Descriptions that areprovided in Chapter 6 on Organization. The typical siteorganization chart is included in that chapter as

Serial#

Department / Section / Process Output

1 Business DevelopmentIdentify opportunities Evaluateprospective customers Get pre-qualifiedGet included in invitation to bidEvaluate competition

ProposalITBCustomer andCompetitorsdataEnquiry

Synopsis2 ProposalUnderstand scope of workEvaluate ITBGet clarificationsVisit Site if possible to evaluateconditionsPrepare and submit proposalDecide winning strategy, get approvalsSubmit Technical and Commercial

Proposal

Business AreaAs submittedbid.ITB Level 3 planMapping of BOQand CCTRs.CCTR wisesummaryof Man-hours

andQuantities,WBS, OBSMobilizationPlan and Demobplan. Budget

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Rev 0,Cash FlowwINBid reportsCorrespondence

with customerDraft contractdocumentapplicableQuotationreceived

3 Head Business AreaNegotiate (if required)Win and sign contractSelect Site Manager

Form project team

Head BusinessArea Negotiate(if required)Win and sign

contractSelect SiteManagerForm projectteamProject TeamSigned ContractDocumentsAll documentsreceived from

proposals,guidelineson strategy to beadopted

4 Project TeamUnderstand scope of work; identify keypoints inContract to protect Companys interest,Understand DESCON and customer

responsibility.Analyze proposal workingCompare final contract document withProposalDetermine impact of any changes in theabove on

Business AreaHeadSubcontractingstrategyRevised level 3

planProposal forbudgetrevision ifrequired.4.1 Revise WBS

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the project,Resource loading on level 3 planRevise level 3 plan if requiredMP histograms at Supervisor level

and OBS ifrequiredReview ofbudget R

Prepare MRPmaterial andconsumablesPrepare premobilization andmobilizationplanAssignmobilizationincharge

Prepare projectspecificdocumentationviz. HSEplan, PQP, WPSand get itapproved fromcustomer.Get PQR done to

finalize WPS andweldingconsumables.ConfigureProjectMonitoringSystems.Arrangeinspection ofE&P and toolsand getthese certifiedas requiredunder theprocedure.

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Discipline Incharge3 month and 4 week look ahead plans Targets Progressanalysis and comparison with plans Bottlenecksummary Efficiency reports

7.1b Planning EngineerGenerate revised rolling 3 month and 4 week lookahead plans Identifies resource requirement for 3monthlook ahead and 4 week look ahead plansMonitor and analyze discipline wise progress, Updatelevel 3 plan

7.2 Planning and FEDC ManagerKeeps track of extra work Ensures that all extra work isidentified and billed.

Communicates with client regarding changes in scopeand gets approvalsKeeps contracts engineer updated on progress andchanges of scopeSupports contracts engineer in invoice generation

CustomerIntimation about extra work Technical queries

7.3 FEDC EngineerEnsure that document control system is installed and

working properlyEnsures allocation of drawings to WBS/OBS Ensure thatBOQ/BM is taken off correctly and entered into PCSMarking of Standard man-hours, CCTR and Supervisorscodes on drawings Prepare drawings forabrication/erection. Prepares sketches for executionwhen ever necessary and issue to execution team aftergetting it approved. Facilitates Construction Manager inpreparation of rigging studies.Discipline InchargesDrawings for Fabrication and erection Drawing wiseBOM, BOQ and Resource requirement Allocation ofmaterial for drawings

7.4 Planning and FEDC ManagerSupports site manager in revision of budget and cashflow Receive data from Financial Controller for weekly

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report Compile weekly Project Performance reportMonitoring of progress and comparison with contractualcommitments.

Site Manager

Bottleneck summary Efficiency reports Progressanalysis and comparison with plans Weekly ProjectPerformance report

7.5 FEDC EngineerReceive Technical Clarification requests. If possibleprovide clarifications from data and availablespecifications. Otherwise consults site manager beforesending to Customer for clarification and communicatesresponse to all concerned. Facilitates in preparation of

project specific method statements. Customer Technical Clarification requests

CM/Discipline In-chargeDiscuss and distribute weekly plans to DisciplineEngineers Assignment of drawings to supervisorsReview and optimize resource utilization GuideDiscipline Engineers in breaking up 4 week look aheadplan Prepare project specific method statementsEnsure that extra work is identified and reported for

invoicingDiscipline Engineer

Check work front availability on 04 week basis. Ensurequality of work and minimization of wastage Monitorefficiency and provide guidance to bringit up to 1 Ensure that all relevant procedures areavailable and followedIdentify extra work from contractual work scope Ensureaccurate reporting of work and correct posting of man-hours into DSTSDiscipline Engineers

Weekly and Daily Targets Guidance on splitting 4 weeklook aheadArea Scheduler Weekly and Daily Targets

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9 Area Scheduler

Prepares daily work plans from 4 week look ahead,after confirming the work front for the week / day.

Interact with Discipline/Area Supervisors to plan futurework Plan daily jobs at supervisor level, viz. level 4planning Print and distribute DSTSMonitor daily progress Enter progress into DPMSmodule Ensures booking of resources to correct CCTRPrint daily supervisor efficiency reportsIdentify and report extra work Roll up area wise planson weekly basisDiscipline Supervisor Daily Schedule and Time SheetInformation about material availability for drawings

Planning and FEDC ManagerProgress entered into DPMS Efficiency reports available

in system

Discipline SupervisorAchieve progress targets with optimum resource useBooking of resources to correct CCTR Quality workArea Scheduler

Filled out DSTS showing progress achievedI/C PP&AFilled out DSTS showing man-hours utilization on CCTRSIC PP & AEnsure entry of CCTR wise man-hours from DSTS intoGDMS Compare DSTS hours with time card man-hoursof direct staff Correct time entries in time cardsRationalize man-hours based on lower of the two

Prepare Payroll

Financial ControllerArea Scheduler Corrected CCTR wise man-hoursavailable in the systemContracts EngineerReceive progress figures from Planning & FEDCManager and compare with contractual ommitments

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Estimating costs and revenue from extra workEstimating cost to complete Preparation of invoices asper progress Preparation of invoices for extra workCompilation of data for claims Negotiate and award

subcontracts Handling of subcontractsFinancial ControllerCost and financial forecasts Site Manager Invoices forsubmission to customer

13 IC ProcurementFloating enquires for site procurement Evaluation ofquotes issuance of purchase orders, and entry intosystem Follow up of POs, internal inspection of materialand shipment after proper crating. Ensure vendorinvoices are received and adjusted. Return of vendor

guarantees, if any.SuppliersEnquiriesPurchase OrdersI/C StoresPurchase Order Copies

14 IC StoresUsing ACCPAC Icon module for raising of indents as perMRP and all other requirements Entry of POs into

system Receiving material and entry into systemArrange inspection of incoming material. Issuance ofmaterialProcessing of material returns Ensuring accuracy ofinventory tracking customer supplied free issuematerial in MMS module Inspection of free issuematerial and generate a report as required. Receipt andissuance of free issue material Reconciliation of allmaterials in consultation with Central MaterialControllerFinancial Controller

Availability of updated figures in system for thefollowing Cost of purchase orders issued Cost ofmaterial in inventory Cost of materials issued

15 Financial ControllerPreparation of project analytical study Compilation of

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figures for Weekly Project Performance report.Recognizing the accruals. Track advances andguarantees. Preparation of proposals for Budgetrevisions Monitoring of cash flow Correct and timely

booking of incurred costs and revenue.Amortization of expenses as per company policy.Planning and FEDC Managerfigures for Weekly Project Performance reportSite ManagerCost analysis and revenue forecastsBusiness Area HeadCost analysis and revenue forecasts

16 Site ManagerReview of Progress and Efficiency Corrective actions

Observations on Weekly Project Performance. Responseto clarificationsSet next week target Set targets for next three monthsand organizeResources Submission of progress reports to customerinagreed format Contractual correspondence with clientBusiness Area Head Progress reportsHead PMS Clarifications of observations

Customer Progress reports Invoices17 Site Manager

Submission of invoices to client ContractualcorrespondenceApproval of progress reports in client formatCustomer Invoices Progress reports

18 CustomerArrangement for timely delivery of Drawings andSpecificationsIntimation of supply of free issue materials

Planning and FEDC ManagerDrawings and Specifications Response to Technical

Clarifications18.1 CustomerAuthorization of extra workArranges payment against invoices

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Make access available as per planSite ManagerPayment against invoices19 Head PMS

Analysis of all ongoing projects and compilation ofreports for reviewRequest clarifications from Site Managers whererequiredAnalysis of project performance and preparation offeedback to proposal on overall project estimationnormsCEO and CFOProjects Performance summary reportsBusiness Area Head

Observations on Projects PerformanceProposal DepartmentFeedback for revision of estimation norms

CHAPTER-02

Project Planning

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Project planning involves breaking down the entire projectinto smallermanageable activities, determining the durations,interrelationship, and

resource requirements of each activity. Once this has beencompleted then theapplication of resources is scheduled in a planned manner.Arrangements aremade to monitor progress and costs. When work has startedprogress andresource utilization are monitored closely. Corrective actionsare takenwherever required in order to be able to meet the agreedobjectives for the

project.This chapter covers the following topics: Planning techniques Work break down structure Organization breakdown structure Mapping of Work and Organization Break Down Structures Cost Centres and Mapping of Cost Centres with Bill ofQuantities Levels of plan

Planning terms2.1 Planning Techniques2.1.1 Work Break down structure (WBS)

This is a convenient way of breaking down a long andcomplex package intowork packages of smaller duration and complexity so thatthe project becomescost effectively manageable and executable. A properlyplanned WBS deliversthe following benefits The project can be planned systematically Resources can be effectively scheduled Work teams can be assigned responsibilities Costs and budget elements can be comparedWhile preparing the WBS clients specified Scope of workand BOQ are

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analyzed keeping in view applicable constraints. Theconstraints could be inthe form of a fixed time schedule availability of staffing. Theprojects

deliverables are then broken down over measurable andverifiable tasks. Dataof the type of WBS used on earlier similar projects and theacceptance andperformance criteria for the project are all considered incoming up with arecommendation. It must be borne in mind that the items inthe WBS shouldbe such that they can be individually scheduled, budgetedand assigned to an

organizational unit.The output of the WBS preparation process is a deliverablesoriented groupingof project elements. It enables progress and cost data to besummarized atdifferent levels of detail. The structure can be graphicallyportrayed and isbased on hierarchy of work to be accomplished beginningwith the end

product at the top and subdividing in successive levels downto individualactivities at the bottom.In construction projects the division of the overallconstruction work can starton the basis of discipline and then proceed down into areas,zones. TypicalWBS in DESCON environment is as follows:1. Project1.1 Construction1.1.1 Discipline1.1.1.1 Zone/Area1.1.1.1.1 Cost Center/Activity

The WBS for the construction part can be graphicallyrepresented as underPlant Construction

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Discipline A Discipline B Discipline CArea XArea YArea Z

Activities P Q R S2.1.2 Organization Breakdown StructureOBS represents a project organization structure thatmatches with WBS togive effective control over the project. Typical OBS inDESCON environmentis as follows:1. Site Manager1.1 Construction Manager1.1.1 Discipline In-charge

1.1.1.1 Discipline Engineer1.1.1.1.1 Discipline SupervisorPlease refer to Attachment 6.1- for a typical SiteOrganization Chart.2.1.3 Mapping of WBS on OBSMapping of WBS on OBS is a process of forming WorkPackages for eachchain of command in an organization for the successfulachievement of goals.

At Descon projects WBS are mapped with OBS as follows:WBS OBSProject Site ManagerConstruction Construction ManagerDiscipline Discipline In-chargeZone/Area Discipline EngineerCost Center/Activity Discipline SupervisorPlease refer toAttachment 2.1 for an example of mappingof WBS and OBS2.1.4 Cost Center (CCTR) & Mapping of CCTR and BOQA Cost Center (CCTR) is the smallest measurable unit ofwork / activity towhich costs can be booked. In Descon, standardized costcenters have beenidentified and listed for most of the construction activities.

These are used at

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the estimation stage and the same cost centers are usedduring scheduling and monitoring of progress and forassimilation of costs. Some examples are given hereCCTR Description CCTR

Clearing, Grubbing & Excavation 21120Backfilling & Compaction 21130Stationary Equipment Installation 22210CS Pipe Fabrication 23120Cable Laying Works 25510Field Instruments Installation 25620During proposal stage the quantity of each BOQ item isdistributed overstandard cost centers. This facilitates preparing a CCTR wisesummary for

quantities and man-hours. It may however be noted thatthere could be morethan one cost center in one BOQ item e.g. the customer BOQdescriptionEarth Works may be covered in cost centers 21120 and21130. In this casethe BOQ item quantity shall have to be split over number ofDesconsstandard cost centers. Similarly some of the Descon cost

centers may bedistributed over a number of customer BOQ items.Proposal department provides the Cost Centers used on theproject along with the estimated quantities and man-hoursagainst each cost center. (SeeAttachment 2.2). These are subsequently referred to asBudgeted Quantities and Planned Man-hoursrespectively.

2.2 Developing the master plan2.2.1 Identifying / Defining ActivitiesDuring the process of preparing the work break downstructure the overallscope has been broken down into individual activities.Activities are of many types but the main type is a task,which has the following characteristics.

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Consumes time Consumes resources Has a definite start and finish Is assignable

Is measurableOther types of activities are milestones which represent anevent or a phase.2.2.2 Allocating Duration

The next phase of the overall scheduling process isallocation of duration toeach activity. Duration may be allocated on the basis ofnature/quantum ofwork, availability of resources and the past experience.Duration of activities

may be in hours, days, weeks or months depending upon thenature of theactivities and the overall duration of the entire project.Adequate provisionsshould be kept for contingencies and the unforeseen thatmay delay theactivity.2.2.3 Assigning Relationships

The activities should be linked together in a logical way as

these are supposed to be executed. These relationships areto be decided by the Planning Team.The four possiblerelationships may be as follows Finish-to-Start relationship i.e. the successor activity(dependent activity)can only start after the predecessor activity (independentactivity) iscompleted. Start-to-Start relationship i.e. the successor activity(dependent activity)can only start when the predecessor activity (independentactivity) hasstarted. Finish-to-Finish relationship i.e. the successor activity(dependentactivity) can only finish when the predecessor activity

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(independentactivity) has finished. Start-to-Finish relationship i.e. the successor activity(dependent activity)

can only finish when the predecessor activity (independentactivity) isstarted.2.2.4 SchedulingScheduled start and finish dates for each activity andultimately the entireproject are calculated based on the estimated duration ofthe activities, therelationships between the activities and any applicableconstraint. This process is done in two steps. In the first step

called Forward Pass early start and finish dates of eachactivity are calculated starting from the project start date. Inthe next step late start and finish dates of each activity arecalculated starting from the project finish date. Thedifference between early start and late start or early finishand late finish is known as Float of that activity. Its themargin of delay for an activity without delaying its successoractivity.If the completion date of the project goes beyond the

contractual hand-overdate then the whole schedule needs to be re-visited.Squeezing the schedule may require one or all of thefollowing techniques Reducing duration of activities by deploying extraresources or workingextended hours where possible physically and logically. Redefining relationships between activities. Look forrelationships that canbe converted from Finish-to Start to Start-to-Start with somelag. Drag back activities that can practically be started earlier. Locate activities that can be performed in parallel to otheractivities.Scheduling is an iterative process. It requires a lot ofbrainstorming. Various

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options are prepared and discussed among the Projectplanning team and thebest option is selected.2.2.5 Determining Critical Path

Critical path is the continuous chain of activities with thelongest accumulative duration and nil Total Float. Itdetermines the project duration.

The activities on the critical path should be re-checkedcritically whether these are genuinely critical or havebecome critical due to some error in logical relationships ofthese activities with others.Extra care should be given to activities that fall on criticalpath, as delay in any of these will result in delay of thewhole project. Forward planning should be done to make

sure nothing hinders critical activities. Resource requirementfor critical activities should be met on priority.For a graphical representation of critical path2.2.6 Resource LoadingUsually resources must be consumed to complete anactivity. The resourcesrequired may include manpower, tools and plants, cranesand heavymachinery, direct materials, consumables, special jigs and

fixtures etc.Resource loading is to be carried out by the proposalsdepartment using theirestimation software Win Bid. In Win Bid each BOQ item isassigned a costcenter and required resources are also assigned. The data isthen exported toPrimavera or P3 from Win Bid on any of the following basis:i. Area as activitiesii. BOQ items as activitiesiii. Area / CCTR as activities(Usually the basis used is Area / CCTR as activities.)Following resource data can also be exported to P3 from WinBid:i. Direct man-hoursii. Craft wise man-hour breakup

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iii. Direct materialiv. Direct Consumablesv. Equipment (from Packages)After importation of data from Win Bid an overall

requirement of resourcesover the entire duration of the project is determined. If thisrequirement is not possible to be met with availableresources then the schedule needs to be revisited.One or allof the following may help in this situation Look for activities that are not critical but require moreresources.Increasing duration of such activities will result in decreasein resourcerequirement.

Look for activities with large free floats (margins for delay).Delayingsuch activities will not disturb end date of the project but willreduceresource requirements. Look for alternative cheaper resources. Chain blocks maybe used in placeof crane in certain cases. Concrete mixers may be used inplace of

Batching Plant or Concrete hoists may be used in place ofconcrete pumpsfor small concrete pouring. Look for the possibilities of getting resources arrangedfrom externalsources.2.2.7 Consolidated Resource RequirementAfter resources allocation to each activity is finalized, a timebasedrequirement of each resource is generated for the entireproject life span. This gives the consolidated requirement ofeach resource for each time interval. Abrupt peaks followedby a trough in the histogram may be observed. That meansadditional hiring of that resource for the peak period andlaying-off during the lean period and re-hiring when the nextpeak is reached which is not practicable. The manpower

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resource requirement should be balanced to the possibleextent such that there should be a gradual build up ofmanpower till the peak is reached. This manpower should bemaintained during the peak period. Gradual reduction of

manpower should be done as the project proceeds for itsclosure.2.2.8 Smoothening of Resource RequirementIdeally, resource requirement should be a smooth curve, i.e.gradual increasetill it reaches its peak, maintains peak for required periodand then graduallydecreases till project is complete.

There are ways and means to smoothen resourcerequirement to the possible

extent. The activities should be rescheduled, keeping thelogic intact, so thatpeaks should be trimmed off and more resource requirementis generated tofill up the troughs. Employing the following techniques canhelp a lot in doing this2.2.9 Trimming off a peak Look for activities that fall in that period especially the onestarting in the

peak period or the one finishing in that period. Among these activities, concentrate more on the activitieswith largerequirement for that resource and with bigger free floats. Try to drag such activities, keeping the logic intact, out ofthe peak regionand into the trough region either by delaying the start, suchthat the activitystarts after the peak or finish before that period. It isgenerally easier totake such activities out of the peak requirement periodwithout upsettingthe schedule. Increase the duration of activities with large requirementof that resourceand with large free float lying in the peak period.

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By assigning suitable Resource Distribution Curve to thatactivity. It ishowever important that all resources assigned to thatactivity should have

the same Resource Distribution Curve. Also this can only beuseful foractivities with duration long enough to cover at least onepeak and onetrough.2.2.10 Filling up a trough Look for the activities that are either finishing immediatelybefore thetrough period or starting immediately after that period. Among these activities, concentrate more on the activities

with largerequirement for that resource and with bigger free floats. Try to drag such activities, keeping the logic intact, intothe trough periodeither by delaying its finish date or by starting it early. Look for the activities that have large resourcerequirement and eitherfinish immediately before the trough period or startimmediately after that

period. It is generally easier to take such activities into thetrough periodwithout much disturbing the schedule. By assigning suitable Resource Distribution Curve to thatactivity. But allresources assigned to that activity should have the sameResourceDistribution Curve. Also this can only be useful for activitieswith durationlong enough to cover at least one peak and one trough.Important Note: It is practically very difficult to smooth outall the resourcesas smoothening of one resource may disturb some otherresource. So it isrecommended that first priority during smoothening processshould be given

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to critical resources like cranes, special crafts etc. andsecond priority shouldbe given to less critical resources like most of materials andconsumables.

2.2.11 Assigning ResponsibilityDetermining responsibility for each activity is critical to anyscheduling effort,since any construction project involvesbringing together many crafts,subcontractors, suppliers and others to attain projectcompletion. Activitiesshould be defined so that the responsibility for activitycompletion is clear and assignable to a single party. If theactivity is to be completed by thecontractor's own force then it should be assigned to a proper

supervisor. If the activity is to be completed by thesubcontractor or the vendor, responsibility should beassigned accordingly.2.3 Levels of Plan

There are various levels of planning depending upon theextent to which theactivities have been broken down and the details providedtherein.In DESCON generally four levels of plans are prepared.

Level - 1 PlanThis is the basic contractual plan that defines start and enddates for each ofthe major activities like design, procurement andconstruction.Level - 2 PlanIn this level, the discipline-wise schedule for each of theabove majoractivities is prepared. For example the schedule for civil,mechanical and E&I construction activities is definedseparately.Level - 3 PlanIn this level, the level 2 plan is broken down into variousZones/Areas. The activities of Level 2 plan are furtherdivided into smaller activities (up-to Cost Centers level) andschedule for each Cost center is provided. For

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example Mechanical discipline is further broken down torotary equipment,stationary equipment, CS piping fabrication etc.Level - 4 Plan

This plan is prepared at site. In this plan the activities of thelevel 3 plan are broken down to Drawing/Isometric level. InDescon working this exercise is done at supervisor level.2.4 Planning termsFor the purpose of explanation the terms used in planningare arranged here in their logical sequence rather thanalphabetically.

Activity or TaskThe tasks that have to be accomplished in order to complete

the project.Predecessor Activity

The activity that effects start or finish dates of otheractivities (Successoractivities).Successor Activity

The activity for which start or finish dates are dependent onother activities(Predecessor activities).

LagLag staggers or delays the relationship of one activity(predecessor) to another(successor).ConstraintsConstraints are ground realities that overrule the logicalstart and finish time of the activity. For example, a certainpiece of equipment will be received on, say, 25th of March.

That equipments erection activity cannot be startedBefore 26th of March irrespective of the fact that thefoundation will be ready by 15th of March.So we will simply put a constraint to this activity that itcannot start before26th of March. Similarly concreting work cannot be easilydone in wintermonths in regions where temperature goes below freezingduring winter.

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Various types of constraints can be used but most commonlyused are asfollows Start No Earlier Than - This type of constraint is applied to

restrict thatactivity to start before a certain date. Start No Later Than - This type of constraint is applied torestrict thatactivity from starting beyond a certain date. Finish No Earlier Than - This type of constraint is applied torestrict thatactivity to finish before a certain date. Finish No Later Than - This type of constraint is applied torestrict that

activity to finish beyond a certain date. Start On - To impose a compulsory start date to thatactivity. Finish On - To impose a compulsory finish date to thatactivity.Early Start

The earliest possible time at which the activity can bestarted.Late Start

The latest possible time an activity can be started withoutdelaying the enddate of the project.Early Finish

The earliest possible time at which an activity can befinished.Late Finish

The latest possible time at which an activity can be finishedwithout delayingthe end date of the project.Free floatIts the margin of delay for an activity without delaying itssuccessor activity.Total FloatIts the margin of delay for an activity or a chain of activitywithout delaying

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the project.Scheduling

The process of calculating start and end dates of theactivities.

Forward PassThe process of calculating start and finish dates of eachactivity starting from the project start date. This processgenerates early start and early finish dates for each activity.Backward Pass

The process of calculating start and finish dates of eachactivity starting from the project finish date. This processgenerates late start and late finish dates for each activity.Data date

The point in time that separates actual (historical) data from

future (scheduled) data.Man-hoursIt is yardstick for measurement of effort. For example, 4Man-hour will mean any of the following: 1 man working for 4 hours 4 men working for 1 hourStandard Man-hoursEstimated effort per unit required to perform a job in termsof man-hours.

Earned Man-hoursIt is amount of work executed in terms of standard man-hours.Project / Budgeted Man-hours

Total number of man-hours required to execute a project.Actual Man-hoursIt is the amount of man-hours actually utilized to executework.Latest Forecast PlanRevised plan showing expected dates for balance activitiesat certain point intime during project life span.Original (Base) PlanA plan showing all activities as foreseen at start of theproject.Efficiency

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It is the ratio of earned man-hours to actual man-hours.ProductivityIt is number of work units produced per man-hour spent.Cost at Completion

The expected total cost at completion of an activity or aproject.Budgeted Cost

Total estimated cost approved for execution of a project.ResourceAnything that is required to perform an activity is called aresource. Aresource can be manpower, equipment or material.Critical ActivityAn activity that has potential of delaying a project is called a

critical activity.Critical PathChain of critical activities that has potential of delaying aproject is calledCritical Path. Such activities determine project duration.Critical path Method (CPM)A network analysis technique used to predict projectduration, by analyzingwhich sequence of activities (which path) has the least

amount of schedulingflexibility (the least amount of float).Progress Evaluation and Review Technique (PERT)An event oriented network analysis technique used toestimate project durationwhen there is a higher degree of uncertainty with theindividual activityduration estimates. PERT applies the Critical path method toa weightedaverage duration estimates.Gantt ChartA graphic display of schedule-related information listingproject elements onleft side of the chart, dates across the top and activitydurations are shown asdate-placed horizontal bars. It is also known as Bar Chart.

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Work Break down structure (WBS)WBS represents how total job is broken down into subactivities likedisciplines and cost centers.

Organization Breakdown StructureOBS represents project organization that matches with WBSto give effective control over the project.

Cost CenterA Cost Center is the lowest identifiable/measurable activityto which costsincurred can be booked.Direct CostCosts that can be clearly attributed to the activity

performed. These costs aredependent on quantity of the work performed.Indirect CostCosts that cannot be clearly attributed to specific activity.

These costs areincurred irrespective of the quantity of the work performed.1) Mapping of OBS and WBS Attachment 2.12) List of CCTR with quantities Attachment 2.23) Activity Relationship Attachment 2.3a

4) Activity Relationship Attachment 2.3b5) Activity Relationship Attachment 2.3c6) Activity Relationship Attachment 2.3d

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CHAPTER-03

Project Management Systems used in

Descon

3.1 Primavera Project Planner (P3)Primavera Project Planner is an Off-the-Shelf package meantfor planning and monitoring purposes on small, medium andlarge-scale projects.In Descon it is used for developing and monitoring projectschedule. Thisschedule (Generally known as Level-III plan includes

Discipline, Zone, Areaand Cost Centers (as activities), craftwise resources, directmaterials andconsumables, definition of Work Break Down Structure,Organizational Break down Structure and their relationships.It is used right from the proposal stage in developing thelevel 1, 2 and 3 plans. Then it is used for scheduling ofactivities by importing data into it from The WINBIDestimation software. In the pre-mobilization stage it is usedfor revising the level 3 plan and for drawing up the 3 monthand 4 week look ahead plans. The allocation of resourcesand their smoothing is carried out in P3. The software isused for printing of manpower histograms. It allows the userto view the network in either bar chart form or as a PERTdiagram. During the project execution phase it is used forupdating the project master schedule and for generating the

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3 month and 4 week look ahead plans.For further details please refer to the Primavera Planningand Control Guide.

3.2 PCSProject Control System or PCS is in-house developedsoftware designed tomonitor progress and efficiencies during the projectexecution phase. Itconsists of the following modules: DCS - Document Control System DPMS - Descon Project Monitoring Systems MMS - Materials Management System ITS - Inspection and Test Solutions

Bottlenecks Test Packs3.2.1 DCS (Document Control System)DCS is an important part of PCS. As the name suggests, DCSis aimed atexercising effective document control at project sites. Thetarget users of thesystem are document controllers. Main features of DCS areefficient receipt,

issuance, retrieval, status and revision management ofdocuments. DCS isprimarily meant for external documents, i.e. from client orconsultant, but can also be easily extended to cater forinternal documents using intelligent coding structure. Incontrast to routine document control, this DCS module formsa very important part of an integrated project managementenvironment. The information available in the DCS module isshared by other modules of PCS DPMS, ITS, & MMS.However this information sharing is one way only: DCS doesnot use information of the other systems. The usual mode ofinputting information in the system is manual entry, but insome cases information can be electronically input in thesystem. The rich reporting capabilities of DCS helpdocument controller keep track of different informationrelated to drawings. Reports that can be generated through

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DCS are: Transmittal wise receipt/issuance: It lists all receipts andissues, and thesecan be filtered for transmittal number, duration, received,

issued, or both.They can be further filtered for Area in charge, supervisor,location, andtest pack. The report can also filter for superseded or latest.

The report alsoincludes MCN (Material Control Number) and Test Packnumbers thathave been entered in different modules. Drawing wise ledger: This report shows receiving andissuance record.

Drawings to be issued: Indicates when new revisions ofearlier issueddrawings are received. Drawings status: It gives a full summary and can show ifdifferent versionsof a drawing are in use in different modules, QS analysis: It indicates assignment of drawings to eachQS3.2.2 DPMS (Descon Progress Monitoring System)

DPMS holds a central position in Descons integrated projectmanagementEnvironment, and is used to schedule the work and tomonitor projects on daily basis. The target audience of theDPMS is planning and FEDC managers, constructionmanagers, discipline incharges, discipline engineers,planning engineers, area schedulers and quantity surveyors.

The main features of DPMS are drawing and cost center wiseBOQ entry, level 4 planning, generation of DSTSs, andsubsequent progress entry at supervisor level. Original andlatest forecast plans of a project, and actual man-hours fromGDMS are imported into DPMS. They form the basis ofprogress and efficiency monitoring in DPMS. Other inputs ofthe system comprise documents registered in DCS,materials received in MMS, material consumption in ACCPACIC and inspection classes as defined in ITS. DPMS compares

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actual progress for a period with corresponding plannedvalues as per the plans, and provides many useful reportsthat show the status of the project team on different projectperformance parameters. The most sought after and

frequently used reports are project top sheet, man-houranalysis reports and material and consumable analysisreport which are to be submitted to B. A. and H.O. on weeklybasis by the project site team. Apart from these reports,DPMS provides outputs to other systems, these systemsinclude ITS, P3 and ACCPAC.Reports that can be generatedfrom DPMS are: Work front availability status: The summary report showsstatus of drawing wise material availability and issuance.Detailed report shows the total quantity available under

client issued and also the quantity under site issued DSTS: This is the Daily Schedule and Time Sheet for eachsupervisor. Drawing wise progress summary: It shows earned quantityagainst individual steps and total for the CCTR. Incharge/supervisor wise efficiency. Consumable/material analysis. Report to update Primavera project. Man-hour analysis: It provides discipline wise comparison

of original and latest figures of quantities and budgetedman-hours. It shows comparison of planned and earnedquantities as well as planned, earned and actual man-hoursand calculates man-hours per unit efficiency. Project top sheet: It compares progress in terms ofplanned original, latest forecast and actual percentages. Thereport also shows comparison of original budgeted, latestforecast and actual man-hours with earned man-hours.

These tabulations are available discipline wise as well asoverall with efficiency calculation and S curve. Client stock availability.3.2.3 Materials Management System (MMS)

The main purpose of MMS is to handle all transactionsrelated to client/free issue material. The intended users ofMMS are storekeepers in the Client Material Warehouse. Themajor input of the system is the entry of BOM for

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Each drawing entered into DCS. Activities that require use ofclient-suppliedMaterials are planned in DPMS according to the entry of BOMstatus in the

MMS module.Reports that can be produced from MMS are: Drawing material status: It shows quantity required, issuedand reserved, Isometric/drawing wise stock: It shows quantity requiredalong with receipts and issues, Item wise receipts/issue: It shows quantity required andreceipts and issues for this item. Item wise stock: It shows quantity required, received,issued, returned and present stock.

Item wise ledger: It shows record of all transactionsindicating stock after each receipt and issuance. Shipment detail. Over issuance. Shipment wise work front detail: It indicates required,issued, reserved,short, expected date of arrival and shipment quantityreserved. Drawing wise quantity and issues.

3.2.4 ITS (Inspection and Test Solutions)Inspection and Test Solution is primarily designed to controlthe activities inWhich inspection and testing is involved. The target users ofthe system areQuality control inspectors. The features of the system areinspection progress and monitoring; inspection activitiesscheduling and performance control. ITS is promptedautomatically when the progress entered in DPMS reaches astage where inspection requirement have been specified.Like wise when test is complete and it is entered in ITS,DPMS is prompted. The main output of ITS are StatisticalAnalysis, Production reports, and Comparison reports.Reports that can be produced from ITS are: Welders Progress Detail: This report shows the weldersperformance.

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Overall progress is shown in term of dia inches and isverified by QA/QC department. Welders Progress Summary: The objective of this report isto view welders efficiency during a specified period of time.

Efficiency is calculated as diameter inch welded per day.Report shows diameter inches earned, number of workingdays and diameter inch welded per day. Welders Qualification: This report is produced to visuallycheck the qualification of all the welders on a process for aspecific year. Mobilization and Demobilization dates are alsolisted in this report. Outstanding Repairs: This report is produced to know thestatus of pending repair work. Supervisor, drawing, welder,report number and repair detailed information is also listed

with each repair. Pending RT Status: This report is produced to view balanceRT work of NDE Contractor as requested by QA/QC. Welder Wise Statistical Analysis: This report shows thework done by a welder or a pair of welders with repairinformation under an inspection extent for a specific periodof time. Drawing Wise Statistical Analysis: This report shows thework done under a drawing with information of the

inspection extent for a specific period of time. Generation of Check advice for inspections. Production Report - Radiographic Test Status: The object ofthis report is to view the detailed information of executedradiography test(s) and results. Production Report - Inspection Activity Wise ProgressReport: The primary purpose of this report is to check theInspection Activity progress status. This report covers all thedisciplines. Welding Production Supervisor Wise: This report monitorsthe supervisor performance in term of diameter incheswelded during specific period of time. Welder Repair % age based on RT: The primary purpose ofthis report is to view the %age repair on joints and %age offilm on repair performed by welder(s) during a specificperiod of time.

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Inspection Summary: The primary purpose of this report isto view the entire inspection information at a glance. In thereport criteria you can also have the option to report onentire test pack in a single selection.

RT Films Status: This report gives the status of RT Filmusage during a specific period of time. This report is alsoused to compute the payment of NDE contractor. Project Joint Efficiency: This report shows the overallpicture of inspection and their results in the project. Repair Type Wise Comparison: The primary purpose of thisreport is to view the occurrence of all types of repairs in theproject. This report also distinguishes the mostly occurredrepair. Welder Wise Repair %age: This report shows percentage of

repair type of welder against each month.3.2.5 Bottlenecks

This system enables its users to book major bottlenecks in aproject. When a bottleneck is observed it is entered in thesystem, and it is used to keep track of the factorsresponsible for the bottleneck, incharges and clientscomments thereupon, remedial actions taken, effects of thebottleneck, etc. The report that is produced from this systemis

Bottlenecks Summary: This reports shows the informationfor a reported problem. It includes the name of the CCTRand phylum at which the problem has occurred, thecomments of the in charges if any, any action taken on theproblem, identification that the problem is due to Client or isdue to DESCON, if there are any clients comments on theproblem and in which category this problem lies.3.2.6 Test packs

Test pack is used to divide large network of interconnectedpipes into small manageable parts to facilitate testing of theparts. Test packs are made necessarily for a process systemhaving common operating and testing parameters. TestPacks are prepared as early as possible containing a numberof drawings related to a system or for part of the systemboundary keeping in view its handling during testing or asrequired by the commissioning team.

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This module helps in tracking the progress status ofinspection within a Test Pack on the drawings. It also tracksthe movement of test packs. This module is connected withthe ITS module and the Inspection Summary report contains

a filter for Test Pack which enables a user to view theInspection Status with in a Test Pack. Following reports areavailable in the Test Pack module Test Pack Summary: This report shows the test packmovement control summary. Test Pack Status Report: This report shows the status ofthe activities that are to be conducted for the Test Packs. Itshows the completion dates of the activities that have beenfinished.3.3 Gainful Deployment of Manpower System (GDMS)

Gainful deployment of manpower system is basicallydesigned to ensure that manpower is being efficientlydeployed. The system does not arrange deployment by itselfbut helps in monitoring the efficiency of its utilization. It isoperated by the timekeeper at the site. Particulars of all thesite-based staff are fed into GDMS. This includes their termsand conditions from the point of view of salaryadministration. Daily staff attendance from DSTS showingcost center wise allocation of man-hours is fed into it. The

daily time card entries for the staff are also keyed in andcompared with the DSTS attendance to come to a figure ofthe actual hours to be paid to the individual. The systemprovides electronic output to DSTS in terms of man-hoursbooked to each CCTR. These values are then compared inDSTS with the earned man-hours achieved to determine theefficiency of utilization of manpower with each supervisor.For the purpose of Payroll it provides complete figures foreach direct employee deployed at site. The reports that canbe generated from the system are listed below: Man-hour reports Category wise Man-hour summary Craft & CCTR wise Man-hour summary Payroll related reports Journal voucher for salary Social security Contribution report

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GDMS Flow Chart is attachedFor details of system operation refer to the GDMS Manual3.4 Gainful Deployment of Equipment System (GDES)GDES is designed to control equipment cost and productivity

by gainful deployment of equipment. Logbooks aremaintained for each piece of equipment. The number ofhours the equipment worked on various Cost Centers isnoted in the log book. This data is then fed into GDES ondaily basis. The system compiles data and generates CostCenter wise equipment cost booking reports. These reportshelp site management team to control equipmentdeployment. Salient reports produced from this system are Monthly equipment deployment and POL consumption Equipment deployment plan

Equipment maintenance schedule Equipment Utilization CCTR wise Equipment efficiency report Equipment wise maintenance cost Equipment rent charging report CCTR wise equipment utilization hours ratio3.5 SMART (System for Material Acquisition RetrievalandTransfer)

SMART is an in-house developed software used forProcurement and MaterialManagement of Descon Supplied Material and Consumables.

This software consists of four modules ITEM CODING, MRP orINDENT,PROCURMENT MANAGEMENT SYSTEM (PMS) and INVENTORYCONTROL (ICON). The last module is not being used. BriefIntroduction of these modules is given below.3.5.1 Item Coding:

The Item coding module is used for maintaining a data baseof complete descriptions of all material to be used on theproject. Its significant capabilities are. Flexible coding structure. Scheme Association at any group level. Defining attributes catalog. Accommodating up to 40 characters numeric code.

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SM-System Manager for System Administration and errortracking These modules are described in detail in theFinancial manual.3.7 System integration

For most of the systems, to integrate them with each other,Electronic Import and Export routines are used. For example,the Actual Man hours entered inGDMS are exported from GDMS as a text file. The same textfile is imported in Process. Likewise Process is integratedwith P3 using the same technique and the Level-III plan areimported into Process as a text file.Process is also capable of importing BOQ, BOM, and FieldChangeRequirements in the BOM, Client Stock, and Consumable

data fromACCPAC-IC.1) DCS Flow Chart Attachment 3.12) DPMS Flow Chart Attachment 3.23) MMS Flow Chart Attachment 3.34) ITS Flow Chart Attachment 3.4

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CHAPTER-04

Pre-mobilization Planning

For a project to progress satisfactorily in its earlier phases itis necessary to start the planning activities as early aspossible. It is desirable to have a period of three to fourmonths for the initial planning before actual mobilization tosite. This period of pre-mobilization starts from the timewhen assessment of interaction with the client indicates thatthere is a strong likelihood of the contract being awarded toDescon. The individual pre mobilization activities aredescribed in the following paragraphs. Please refer to

Attachment 4.1 flow chart for pre-mobilization planning

4.1 Contract AwardAfter evaluation of bids it is usual for the client to shortlistthe contractor for awarding the job and to issue a Letter ofAcceptance (LOA) or Letter of Intent (LOI) to the contractor.

This letter is advance intimation to the selected contractor ofthe customers intention to award the project as per theConditions of the Contract. It may be addressed to theProposal Manager,

Head Business Development or the Head of the relevantBusiness Area. The recipient acknowledges receipt ofLOI/LOA. Most projects are to be carried out against tighttime schedules and this practice of issuing the LOI givesadvance notice to the contractor to start preliminaryplanning in order to reduce the reaction time that would be

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required after award of the contract. It enables thecontractor to start early mobilization of resources that wouldbe required to carry out the project.After issuance of the letter of intent or award of the work

and before signing of the contract, the Proposal Managerensures that any variations between the contract and thetender requirements are resolved and documented. TheContract Document is thoroughly reviewed by the ProposalManager before it is signed. After the review, ProposalManager or any other person nominated by the ExecutiveManagement signs the contract on behalf of the Company.Contract agreement normally includes Letter of Acceptance and Letter of Intent (whicheverapplicable)

The Tender Conditions of Contract Specifications Drawings Bill of Quantities Minutes of Pre-award meeting with client Project Master Schedule Other such documents that are intended to form thecontract.

4.2 Selection of Site Manager and Core TeamAlthough it is desirable that the Proposal Manager besubsequently assigned as the Site Manager / ProjectManager / Project Sponsor for the project, this may notalways be possible on account of other requirements withinthe company. In case the Proposal Manager is notnominated as the Site Manager, he hands over a copy of thecontract, together with all the relevant documents to theBusiness Area Head or the person authorized by the BAHead to receive them. Please refer Attachment 4.2 list ofdocuments to be provided byProposal to BA.

The Business Area head in consultation with Head HRD andother BA Heads decide the person who is to be assigned asthe Site Manager for the project.

The person selected for this assignment has to be

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technically capable for understanding the project and ofleading the project team in achieving the project objectivesin a safe manner, within the agreed budget. He also has tobe familiar with the companys procedures and project

management systems. Once the Site Manager has beenselected, the Head BA in consultation with him select theother members of the Core Team for the project. Thesewould be the Planning and FEDC Manager, ConstructionManager and/or the mainDiscipline In-charges. These individuals could be selectedfrom the resources available within the company or fromoutside.4.3 Gather Core team and start trainingAs mobilization to site takes time, the available facilities

within the companys offices are utilized and members of thecore team are located there to start their familiarization withthe project. During this phase the head PMS departmentprovides stewardship to the core team in pre-mobilizationactivities. The Site Manager and Head HRD select individualsfor assignments as Planning Engineer, FEDC Engineer, I/CQC, I/C P&A, I/C E&P, I/C Stores, and Financial Controller.

They are included in the team as soon as they becomeavailable. In case some individuals are inducted from outside

the company or are going to be assigned to functions thatthey have not performed before, then they are given thenecessary training. PMS arranges this training with thesupport of the relevant BSD.4.4 Understand scope of work,

The members of the core team start review of the completeset of documents that have been received from BA head.During this review they get a thorough understanding of theoverall scope of work. Descon and Client responsibilities arealso identified and clearly understood. If any clarificationsare required in this regard the Proposal Department iscontacted and if the issue is not resolved then the Client iscontacted. Assumptions made about the clients work permitprocedures at the site are re-confirmed after clarificationshave been obtained. The finally understanding isdocumented and provided to all members of the team.

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4.5 Comparison of Bid and ContractAfter having understood the scope of work the team startscomparison of the Bid and Final Contract documents. Insome case the client may have included some provisions in

the final contract that are different from the basis used forpreparation of the bid. At this stage a list of items should bedrawn which could be cost adder and must be under closevigilance by all concerned or there may be some items toearn more revenue.4.6 Determine impact on costsAt times some last minute discounts may have been madefor which the financial implications have not been fullyanalyzed and incorporated. The objective of this review is tounderstand all these differences and determine how they

are to be tackled.Once the differences in the Final Contract and the Bid havebeen identified some members of the team with a financialbackground are assigned the task of evaluating their impacton costs. The impact on the budget and cash flow of theproject is studied and analyzed. In case the impact issignificant then the original correspondence is reviewed tosee if there was some exception claimed while submittingthe proposal on account of which the client can be asked to

revise the terms of the contract.4.7 Revisit Execution Strategy

Members of the core team review the execution philosophyto see how costs can be reduced. The following are some ofthe items reviewed. Procurement of Descon supplied material from moreeconomic sources Sub contracting work packages Execution methodology keeping in view the efficientdeployment of E&P. Adoption of mechanization where it can reduce costs Hiring or purchasing of equipment and plant Mechanism of setting up the site camping facility and the

Temporary site facilities Enquires are floated to get morerealistic price estimates for the procurement of material andits delivery at the site. Similarly quotations are obtained

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from other possible vendors for equipment required at thesite. Methodology of performing major jobs is reviewed tosee how costs can be reduced. Efforts are made to moreextensively utilize Descon owned equipment that may now

be available in time for the project needs. E&P department iscontacted to confirm availability of Descon owned resourcesplanned to be utilized at the project and to see if additionalDescon owned equipment could now be used in place ofhired equipment. Alternate options are considered andevaluated for subcontracting out additional portions of thework. The following advantages can be expected from subcontracting Lower direct and indirect costs Improvements in project schedule

Sparing companys resources for other more productiveutilizationAvenues for obtaining manpower at cheaper rates thanconsidered in the proposal are explored. After havinganalyzed the contract the individual members then come upwith their recommendations on how the project executionstrategy should be changed so that costs can be optimized.Once all the proposals have been reviewed, the team leaderdraws up the overall execution strategy for the project.

4.8 Review and revision of WBS and OBSKeeping in view the formulated execution strategy membersof the core team review the original WBS and OBS. Somechanges shall be necessary for revisions that may have beenmade in the subcontracting strategy. It is also likely thatsome changes shall be required keeping in view thecapability of the individuals available for deployment to theproject.4.9 Revise budget and cash flow forecasts

The financial impact of any changes in the executionstrategy such as revision in the subcontracting criteria iscombined with any differences found in comparing the finalcontract and the bid. The overall impact of these changes isthen used by the Planning and FEDC Manager to prepareRev 1 of the budget. The cash flow forecast is also revisedaccordingly. These are then reviewed by the Site Manager

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and sent to the BA head for approval.4.10 Revision of Level 3 PlanKeeping in view the additional information now available thelevel 3 plan is reviewed in detail to see if any changes are

required. It is possible that some adjustments have to bemade to allow for some delayed deliveries. Once thesechanges have been incorporated a revised level 3 plan isprepared. In case the changes are likely to have a costimpact or in the worst case an impact on the overall projectschedule these are discussed with the Head of the BA. Someclients require that all revisions on the level 3 plan arecommunicated to them.

Their approval of plan revisions is obtained if required.4.11 Revise Manpower Histograms

Some revisions in the execution strategy and the Level 3plan might have an effect on the manpower histograms.

These are re evaluated and new histograms printed tocorrectly assess the overall and craft-wise manpowerrequirements.4.12 Prepare 3-month look aheadIn order to carry out more detailed planning the procedureadopted is to take the first three months of the project andreview the requirements of materials equipment and

manpower for the activities planned in it. This 3-month lookahead plan is prepared on Primavera by the PlanningEngineer and is reviewed by the Planning and FEDC Managerand the Financial Controller. It is then jointly reviewed withthe Discipline In-charges, Construction Managers and SiteManager and finalized. Preparation of this look ahead planenables accurate estimation of resource requirementsduring this period and allows ample time for theirarrangement.4.13 Mobilization PlanAt this stage detailed plans are made for the mobilizationactivities that shall be carried out at the site. This plan is tohave the time schedule for building up of the site facilities,arrangement of manpower and equipment. Although theMobilization plan shall vary from project to project the timingand duration of the following salient activities is addressed

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in most of them. Kick of meeting, both internal and with client Mobilization of key personnel Procedure for visa and security passes

Deployment of indirect staff Deployment of direct staff Hiring of technicians Preparation of documentation for WPS/PQR and WQT Welder qualification testing Preparation of subcontracting packages and floating ofenquires HSE manual submission and approval Project Quality Plan submission and approval Tools and tackle procurement and certification

Equipment and plant deployment Possession of camp Setting up of camp facilities Provision of utilities at camp Possession of site Survey and trial excavation Fencing of site and grading of area Setting up of offices Setting up of workshops

Setting up of lay-down area Setting up of Client Material Store and Descon Warehouse Provision of utilities, toilets, sewerage system, powergeneration and distribution4.14 Appoint Mobilization InchargeOne of the members of the core team is now appointed asthe mobilizationincharge. This function is covered under the title of InchargeSite set up in the job descriptions. He will normally be thefirst individual who will move to the project site.4.15 Configure Project Management SystemsAs most of the members of the site team are now availablein the remobilization office the Project Management Systemis now set up there and configured to give the individualshands on experience of using the system. The Business Areaarranges hardware required for this purpose. Data available

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for the project is populated into the system. Data from the P3 plans is imported into the DPMS module of PCS. Similarlythe GDMS and GDES systems are also loaded. SMART andACCPAC are also configured by the respective users. The

Planning and FEDC Engineers try out the DSTS and DCSmodules while the I/C QC tries out the ITS module. The I/Cstores check out the MMS module and ACCPAC Icon whilethe Financial Controller checks out the other ACCPACmodules. I/C P & A & I/C E&P check put the GDMS and GDESsystems.

This exercise has many benefits. Gives the individuals confidence in the capabilities of thehardware and the systems selected In case there are some bugs in the system they can be

identified and rectified Makes all the members familiar with the work of thisproject Allow the team members to interact and develop as ateam Saves time in setting up the system after it is located tosite.4.16 Prepare MRP

The Planning engineer and the FEDC engineer now look at

the scope of work and prepare the outlines of the overallmaterial requirements. The schedule for the delivery of theitems identified is worked out keeping in view thecustomers approval time. It should also be kept in mind thatun necessary funds should not be blocked in inventory whileat the same time ensuring that material shall be ailablewhen it is required. The Planning & FEDC Manager makesthe material requirement plan with assistance of PlanningEngineer and FEDC department using SMART.4.17 Prepare HSE Plan

The HSE plan is prepared by blending the companiesstandard practices with the site related conditions and clientrequirements. The table of contents of a typical HSE plan isavailable at Attachment 4.6. During the pre-mobilizationphase resource requirements are identified, arrangementsmade for their timely delivery, and Risk Assessment studies

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dependent on the in time delivery of drawings, specificationsand client supplied materials. For this reasons it is essentialto discuss the schedule for the receipt of all client suppliedmaterial and drawings and then come to a written

understanding on this. This can then be referred to andfollowed up. In case drawings delivery is delayed the clientcan be asked for suitable compensation or relaxations.4.22 Summary

The total inputs required for proper pre-mobilizationplanning from Proposal and Business Area have beentabulated overleaf. The actions taken in this phase and theresponsibly for carrying them out are summarized in thecentral box The outputs for use of the Site Management arelisted in the box on the right.

Pre Mobilization PlanningInput form Process Responsibility. Output formProposal/Business Area Project Team to Site ManagerAs submitted bid. Tech & Commercial doc Understand scopeof work, PLFEM Evaluation of proposal working reportITB Complete doc Understand Descon and clientresponsibility PLFEM Revised level 3 plan P3 Level 3 plan,with Manpower loaded P3 Analyze proposal working PLFEMMobilization plan P3

Mapping of BOQ and CCTRs. excel Compare final contractdocument with Proposal PLFEM MRP for material andconsumables SMARTCCTR wise Manhours and Quantities, excel Determineimpact of any changes in the above on the project, PLFEMConfigured Project Monitoring Systems PCS WBS, excelResource loading on level 3 plan, Material & ConsumablesPlng. Proposal for budget Rev 1 excel Organization chartexcel Revise level 3 plan if required Plng. Organization chartexcel Mobilization Plan. P3 Prepare MP histograms atSupervisor level Plng. Project specific documents docDeployment Plan Direct MP doc. Revise WBS and OBS ifrequired Plng. Method Statements doc Deployment PlanIndirect MP doc. Review of budget R 0 PLFEM Schedule ofClient deliverables excel Deployment Plan Equipment &Plant doc. Prepare MRP for material and consumables Fedc

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Direct Materials and Consumables doc. Prepare detailedmobilization plan PLFEM TSF details doc. Appointmobilization incharge SM Budget Rev 0, excel Prepareproject specific.

CHAPTER-05MobilizationA lot of resources and efforts are required to start a newproject in a timely and cost effective manner. Mobilizationmeans, to move and muster all the resources required forthe project and gear up for performing the job. The periodbetween award of the project and its starting date, as givenin contract, is called the Mobilization Period. It varies from

project to project depending upon the size of project, thecontract conditions and total duration of the project.5.1 Site clearance

The first activity to start at the site after taking it over is toclear it up for eventual setting up of the project and thetemporary site facilities. It is planned in advance, as all otheractivities at the site are dependent on it. Owing to the largeareas of most sites the clearance is arranged in a sequentialmanner so that the area where the temporary site facilities

are to be set up becomes available while work on the otherareas continues.5.2 Arrangement of site facilitiesOnce the site clearance has progressed satisfactorily, workof setting up the Site Facilities is started. This includes thefollowing: Residential Facilities Project Site Facilities Workshops and Yards Stores / Warehouses

Lay down / Storage Area LAN Architecture and Communication Infrastructure QC Laboratory E&P Workshop and Generator Rooms Concrete Production and Testing Facilities Establishment of Communication Mode

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Generally site facilities are constructed through local sub-contractors. Standard drawings and specifications areavailable that can be modified as per requirement. Standardsub-contracting procedure (as described in detail in the

Contracting Manual) is adopted for pre-qualification of sub-contractors and job is awarded after inviting and receivingan appropriate number of quotations and reviewing them.I/C Site Set up is responsible for looking after all activitiesrelated to establishment of site facilities. Incharge Site Setup carries out final inspection of the facilities before theseare handed over to the site.5.2.1 Residential FacilitiesResidential facilities comprise Dormitories, Barracks, Mess,and Kitchen for Direct and Indirect staff at the project. These

are built on the land arranged for the purpose. For designand typical BOQ detail for residential facilities please refer tothe Project Site Facilities Manual and PP&A/SOP/02 Section5.2.2 Project Site OfficeProject Site Offices are the main offices where the SiteManager and other key persons are placed. These can belocated together or at respective work locations / site. Fortypical design and related information please refer to theProject Site Facilities Manual.

5.2.3 Workshops and YardsWorkshops and yards are established depending upon thescope of work at the project. For typical design and relatedinformation please refer to the Project Site Facilities Manual.5.2.4 Stores / WarehousesStores and Warehouses may be built in temporary structuresor by using porta cabins. This shall depend upon nature ofproject and the quantity of material to be stored. For typicaldesign and relevant information please refer to the ProjectSite Facilities Manual.5.2.5 Laydown / Storage AreaRequirement of Laydown/Storage Area depends on thequantity of material to be handled. The area is generallyselected close to the Store / Warehouse / or Fabrication shopso that there is minimum handling of material. For typicaldesign and other relevant information please refer to the

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Project Site Facilities Manual.5.2.6 LAN Architecture and CommunicationInfrastructurePP&A at site establishes communication infrastructure by

providing telephone, fax and e-mail facilities for fastcommunication.Local Area Network (LAN) is required to share data amongstvarious project management systems in order to avoidduplication of data entry and to make systems operateefficiently and intelligently. In order to establish LAN facilityat project site, System Administrator studies variousnetworking options for example peer-to-peer, server basedetc. depending upon extent of network required, totalnumber of computers to be connected, site layout, budget

provision etc. System Administrator prepares cost estimatesfor different options and seeks approval from the Planningand FEDC Manager & Site Manager. Upon approval SystemAdministrator department establishes LAN.5.2.7 QC LaboratoryA Quality Control laboratory is established at site to facilitateQuality Control inspections and tests. QC laboratory isequipped with all required equipments and apparatus. Thelayout of QC lab depends upon the nature of tests to be

performed. I/C PSF is responsible for establishment of QC labin accordance with the approved design and specifications.5.2.8 E&P Workshop and Generator RoomsLayout of E&P Workshop and Generator Rooms dependsupon number of equipment to be deployed at site. Details ofthese are available in the proposal working. I/C PSF isresponsible for construction of these facilities at site as perapproved design.5.2.9 Concrete Production UnitFor civil projects concrete production unit or Batching Plantis required for preparation of bulk concrete. Drawings forfoundation and other facilities related to Batching Plant areavailable with E&P department. These facilities aredeveloped at beginning of the mobilization phase so thatBatching plant is commissioned before start of concreteworks. Alternatively if an alternate source is available for

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supply of premixed concrete then it may be utilized if anoverall saving can be achieved.5.2.10 Security ArrangementProperty and Personal Security is ensured by installing

security gates, fences, security posts, lighting arrangementetc. Contacts with local law enforcing agencies aremaintained to avoid security risks. For further details pleaserefer to PPA/SOP-02 Section B.5.2.11 UtilitiesElectrical network, Water and sanitation arrangements,Camp market,Recreation halls, Indoor and outdoor Sports facilities areprovided to maintain healthy and comfortable living for thedirect and indirect staff to be stationed at the site. In some

contracts the Client also desires to have the contractor setup facilities for their use at the site. Details of the facilitiesrequired are available in the proposal working.5.3 Commission Security arrangementsIncharge Personnel and Administration is responsible toprovide foolproof security to the company employees andproperty at the project site. The following steps are taken inthis regard:1. Security personnel are deployed at the gates of the camp

and at other sensitive areas. The security staff at projectsites consists of: Security Supervisor 01 Head Guard (Shift Incharge) 02 (Day / Night) Security Gate Clerk 02 (Day / Night) Security Guard As per requirement.2. Access to the project site is allowed only through the maingate. Only the persons who display the Company IdentityCard, Visitor Entry Card or show the Temporary SecurityCard will be allowed to access the project area.In addition to the above security measures Gate Passes willbe issued to control the incoming and outgoing machinery,tools, plants, equipment and material. For further detailsplease refer to PPA/SOP-02 Section B.

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5.4 Set up Stores for Descon material and ClientMaterialWarehouseOnce the basic physical facilities have been built the Client

Material Store andDescon Warehouse are prepared for operation and receipt ofmaterial. Some of the Staff for these functions is alsomobilized early so that they are ready to take material andissue them as required. It is desirable to have the projectmonitoring systems operative as early as possible for theentry of the Bill ofMaterial into the MMS module and the preparation of theMRP for the project. Similarly the ICON module of ACCPACshall be used for the Descon Store and it should also be set

up. In case there is some delay in commissioning of thesesystems then alternate manual records have to bemaintained for the interim period but these mustsubsequently be entered into the systems as soon as theybecome available.5.5 Arrange indirect manpower deployment

The estimation of indirect manpower is based on the directmanpower requirement. This estimation is also done duringthe bidding stage and is accordingly included in the budget

of the project. Sourcing of manpower is also consideredwhile preparing the bid keeping local conditions andavailability in view. These assumptions are rechecked in thepre-mobilization stage considering latest information andrevised if deemed appropriate. As soon as the project isawarded, a mobilization schedule is prepared for the indirectstaff and the personnel are mobilized as per the schedule.

The Site Manager works with the Business Area Head orthrough his designated representative, to ensure timelyallocation of human resources. The requirement is conveyedto HRD through form HRD/FRM-03 the requirement of theindirect manpower is arranged by any or combination of thefollowing means.1. Transfer of manpower from the DESCON Head Office or anoversea BA to the project site.2. Transfer of manpower from other project sites where the

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requirement of personnel has decreased3. If the required manpower is not available from the abovetwo sources, the same may be met through freshrecruitment. HRD advertises the job vacancy in newspapers.

A selected panel, appointed by the Site Manager, interviewsthe candidates and suitable persons are selected.5.6 Arrange direct manpower deploymentDirect Manpower is estimated at the bidding stage. Thisestimate is based on the scope of work and the effortrequired to perform that job and is in the form of month-wisemanpower histogram for each craft. Like indirect manpowerthe sourcing of direct manpower is also considered at thebidding stage and certain assumptions are made to optimizecosts. These are re-evaluated and revised if some new

factors have come up.Direct manpower is hired by PP&A Department both at HeadOffice and at job site. But in case, sufficient craftsmen arenot available from local area, some craftsmen are hired fromother areas or hired and transferred from the head office.5.7 RecruitmentFour different types of recruitment is done in the company Permanent Management Cadre Contract Management Cadre

Permanent Non-management Cadre Temporary Non-management Cadre

The permanent and contract employees are employedthrough HRD at Head Office. Hiring of Management Cadreemployees is done as defined in the Hiring Policy of theCompany HRD Policy- 02.

Temporary employment is done at the project site by therespective InchargePersonnel and Administration (I/C P&A), and is authorized bythe Site Manager. In case manpower is required in theManagement Cadre, the concerned person initiates theManpower Request Form HRD/FRM-03 and gets itapproved from Site Manager. This is then sent to HRDthrough Head BA.In case of requirement of non managementtemporary staff PP&A FRM 17 is filled out and given to I/CPP&A.

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I/C P&A Site ensures that temporary employment is doneaccording to the provisions in the approved budget. Theselection can be from any of the following Manpower Data Bank

Staff available from other Project sites Applications against advertisementSelection is based on past experience and performancewhile fresh candidates are interviewed either at the site or inthe head office.Appointment letters are issued to the newly inductedtemporary employees, by I/C Site P&A. Personal files for alltemporary employees are maintained by the Incharge SitePersonnel & Administration.Appointment Letters are not required for workers employed

on day-to-day basis. Payment to such workers is made onthe basis of their time sheets payroll etc. as the case maybe. Every temporary employee is entered inGDMS / Establishment Register and Employee Number isissued accordingly.If the services of temporary employees are required beyondthe period as mentioned in his temporary employmentletter, an extension letter is issued by Incharge SitePersonnel & Administration as per requirement of project.

For detailed procedure of temporary appointment, refer toHiring Policy(Temporary) PP&A/SOP-075.8 Manpower Induction. OrientationManpower reporting at site is briefed about the companysprocedures and any site specific policies. They are givendetailed instructions about the safety requirements forworking at the site and the rules to be followed in the usingthe camp and other facilities.5.9 Set up staff attendance control facilitiesAll employees at project sites, punch their cards through

Time Recorder / barCoding Machine or mark their arrival and departure time inthe attendance register, as the case may be.Up-to-date record of attendance is maintained at everyproject site for all the employees, in order to ensure that all

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employees remain punctual and regular.Besides the deduction of salary / wages of unauthorized longabsentees / latecomers, disciplinary action may also betaken as per rules. The Incharge Personnel and

Administration forwards the attendance reports for allpermanent and contract employees to the InchargeAdministration at the Head Office by 22nd day of eachmonth. For further detail please refer toPP&A/SOP-05Leave record for all permanent employees is to bemaintained by InchargeAdministration at the Head Office and that of all contractand temporary staff by Incharge Site Personnel &Administration. For further detail please

HRD/Policy-09GDMSGDMS (Gainful Deployment of Manpower System) shall beset up at Project Sites to monitor cost center wise actualman-hours consumed. It shall also be used to recordemployee attendance and generate the payroll.

The Incharge Personnel and Administration Site prepareGDMS reports and the daily input of actual man-hours is sentto Planning & FEDC manager to calculate efficiency. Also,

monthly GDMS reports are generated at site and forwardedto the Project Manager and I/C PP&A Head Office.Daily Attendance

The daily working hours of all direct employees are enteredinto the DSTS sheets by the supervisors to keep record ofthe working hours and book costs in respective cost centers.DSTS is filled by Supervisor of the discipline and is approvedby Discipline Engineers. In case of Special Overtime, theDSTS is also approved by the DisciplineIncharge/Construction Manager. Time office keeps therelevant record after entering it into GDMS. For details onDSTS5.10 Arrange Equipment and Plant Deployment

The deployment of equipment and plant is arranged asplanned in the Equipment and Plant Deployment Schedule.

The equipment is arranged by following means:

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a) Equipment available within the company is transferred tothe new job site after proper maintenance. Incharge E&P atsite is responsible to coordinate with BA to arrange therequired equipment as per schedule.

b) If the equipment required for the site is not availablewithin the Company, the BA initiates CIR procedure topurchase fresh equipment. A buy vs. rent evaluation iscarried out and presented to the senior management forapproval in accordance with the limits of authority.c) In case equipment required cannot be released from othersites, or is not available within the Company, it is hired fromany suitable supplier by theBA and mobilized at site.MD grants the approval for fresh purchase. A capital

investment request is raised, which is approved by theExecutive Committee. The required equipment is thenarranged by Head E&P and dispatched to site.Please refer toAttachment 4.4 Equipment MobilizationPlan. Also Read for further details: Equipment PlanningE&P SOP-02, Fresh Purchase ofEquipment and Plant E&P SOP 03, Hiring of RentalEquipment andTransport E&P-MS-01.

5.11 Procurement of First Lot of direct MaterialsInformation furnished from Bid documents on DirectMaterials is utilized for procurement at Mobilization stage ofthe project. Additional detailed information that is nowavailable on material requirement is used for drawing up theMaterial Requirement Plan. This is then used for deciding thedelivery schedules. I/C Warehouse arranges to raise indentsand Site Manager communicates material requirement toHead BA to procure and supply first lot of materials to Site.In case the procurement function has been set up at the sitethen site shall arrange procurement directly.

5.12 Negotiate and award Sub Contracts

Quotations received for work to be subcontracted are

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