PROJECT MANAGEMENT

Delhi Metro Project (Govt. of India)

ABSTRACT

The purpose of this project management report was to conduct a study investigating successful controlling and completing of projects within time and cost. The study was carried out with reference to Delhi Metro Project. Delhi Metro projects built and managed by Delhi Metro Rail Corporation Ltd, which is a joint venture between the Government of India and the Government of Delhi. Currently wholly operational and termed an urban phenomenon, Delhi Metro has established to be a cost-effective way out for the transportation afflictions of country’s emergent metropolises. Its time-cost efficiency model is so successful that urban planners all through India at the present take the Delhi Metro project as a standard for unbeaten public sector transport projects.

The report comes to the conclusion that time and cost comprise two decisive components of the project management. In the case of Delhi Metro Project Delhi Metro Project has had been cited as a leading model of a project management story of success particularly in the public sector. Its time-cost efficiency model is so successful that urban planners all through India at the present take the Delhi Metro project as a standard for unbeaten public sector transport projects. For Delhi Metro Projects, there requires Quality-Cost-Time triangle model considering its expansion across the country and maintaining of the running projects. Further for successful implementing Quality-Cost-Time triangle model, the project managers in Delhi Metro will need to adopt Test and Fix Model, as Generalized Activity Network.

INTRODUCTION

Context for the Report

Potholed project management usually guides to delaying in scheduling, overrunning cost and even superior commotion in locality. Hence successful management of a project is not merely to complete the project, but complete the project timely and within the budgets, i.e. with no delaying in scheduling and overrunning of cost (Olawale and Sun, 2010). This implies that successful management and accomplishment of projects requires project managers to complete the projects within time and budget, where they have various advanced tools and techniques to control the projects. In spite of the accessibility of different control tools and project control software, in many cases construction and transportation projects still do not accomplish their cost and time goals( Olawale and Sun, 2010).There is ample evidences in the research literature as regards the reasons of delaying in scheduling and overrunning cost in managing projects,but when it comes to investigating factors demonstrating the capability and skill of project managers to successfully and efficiently control and complete their projects. In this background this report conducts a study investigating successful controlling and completing of projects within time and cost. The study has been carried out with reference to Delhi Metro Project. This is a public transport project, and is known for managing the projects within time and cost.

Project management is just coped with three balls concurrently as it entails keeping up an excellent poise amid bringing on time, within budget whereas guaranteeing quality. Cases of big and compound projects being brought on time and within cost are many globally. In India, for case in point, construction of the Delhi Metro Rail is found to be one of the more unbeaten projects. Generally, the trouble of time and cost over-runs carries on a general troubling vicinity in both public and private sector projects in India. However, very few studies have investigated the relationship amid use of first-rate project management practices and unbeaten project deliverance, particularly all the way through comparisons all through sectors and areas (FICCI, 2012). Recently, Delhi Metro Project has had been cited as a leading model of a project management story of success particularly in the public sector. The project is specifically known for successfully completing the projects within time and cost, with no probability of delaying in scheduling and overrunning cost. Noticeably, Delhi Metro is a speedy transportation system that connects Indian capital Delhi with its satellite towns. Delhi Metro projects built and managed by Delhi Metro Rail Corporation Ltd, which is a joint venture between the Government of India and the Government of Delhi. Currently wholly operational and termed an urban phenomenon, Delhi Metro has established to be a cost-effective way out for the transportation afflictions of country’s emergent metropolises. Its time-cost efficiency model is so successful that urban planners all through India at the present take the Delhi Metro project as a standard for unbeaten public sector transport projects (Mohapatra, 2011). Hence, it would be worth to conduct a study investigating successful controlling and completing of projects within time and cost, as how Delhi Metro Project successfully and efficiently controls and completes the projects within time and time. The findings of this report will help out the project managers working in both the public and private transport and infrastructure projects.

Purpose of the Report

The purpose of this report is to conduct a study investigating successful controlling and completing of projects within time and cost. The study is conducted with reference to Delhi Metro Project. the report attempts to achieve following objectives:

To conduct theoretical and literature review to develop conceptual framework as regards tolls and techniques relating to successfully completing the project within time and cost

To critically discuss the case of Delhi Metro Project as how projects are successfully and efficiently completed within time and cost

To make recommendations as regards more effective time-cost model of project management

METHODOLOGY

Whilst conducting this report, there was option to put into application two methods in the form of qualitative and quantitative. Further when it comes to research strategy, the option was to apply the strategies such as grounded theory, case study, survey, experimentation etc. So far as data collection is concerned, there was option to collect data both in secondary and primary forms. However, considering the word and time limit, this report has been conducted adopting only qualitative research method, solely based on case study research strategy. Further the data has been collected only in secondary form. Adopting qualitative method and using the tool of documents and reports firstly theories and literature was reviewed based on which conceptual framework was developed. Further, based on the developed conceptual framework the case was discussed. The case study research strategy was applied in this report to investigate how projects of Delhi Metro Project are successfully and efficiently completed within time and cost. For conducting the case study research the published reports relating to project management of Delhi Metro Project in relation to time and cot controlling models. The case study used only data in qualitative form, and not quantitative form. More importantly, the data was collected in this report only in secondary form, where the various sources were used in the forms of books, journals and various published reports online and offline. Since the data was collected qualitatively in this report therefore analysis and discussion of the results were conducted using qualitative method, where the case of Delhi Metro Project as how projects are successfully and efficiently completed within time and cost, was discussed with reference to the conjectures emerged from the conceptual framework.

RESULTS

Conceptual Framework

Time and cost comprise two decisive components of the project management. If project time and costs surpass their planned targets, the project turns out to be disastrous. In that case the financial support profile no longer goes with the budget necessity and additionally slippage in the schedule might result in collapsing the project in many a times (Kaliba, Muya and Mumba, 2009). The point is that time and cost overruns come about because of an extensive range of factors. However, the purpose here is not to go in that detail. The purpose here is to detail and discuss the tools and techniques applied for controlling time and cost overruns in successfully and efficiently completing the projects.

As per the obtainable literature, there are several computer led tools and techniques propping up the project management time-cost efficiently overall. Such tools and techniques in the form of software are described as SAS/OR Project Management, Autotask Pro, Primavera Cost Manager, Quick Gantt, Team Manager, Open Plan, Project Simulation Game, Planets, MS Project, Warterfall, Easy projects, OnTime. These software tools and techniques are used to plan the project arrangement and critical path by means of a network of activities, and assessing the cost of activities in relation to the scale of resources, measuring up to planned project achievement costs to finish, analyze the costs borne by specific sections, allocate activities to individuals with proper skills etc., nevertheless they in fact do not let to work out time-cost optimization intricacies (Vanhoucke, Vereecke and Gemmel, 2005; Diaby, Cruz and Nsakanda, 2011).

As per Time-Cost Trade-off Project model of Anholcer and Gaspars-Wieloch (2011), shown in the Figure, the trade-off takes place flanked by the project completion time (T) and the quantity of non-renewable resources, in the form of money, which make up the project’s total cost. As shown in the Figure, the total cost (TC) comprises direct costs (DC) and indirect costs(IC). The direct costs or DC comprises costs linked straight to the achievement of activities in the forms of pays and perks, travel, raw materials, equipment, and their solidity. Activity durations are enclosed from below (crash duration) and from above (normal du-ration), where the curtailing of a specified assignment necessitating the parting of additional resources. On the other hand, Indirect costs or IC are allocated to the project overall, take account of, amongst other aspects, space for the offices, taxes, insurance, management and costs relating to costs. The project has to bear costs of penalty whilst the project completing time is deferred. As shown in the Figure, whilst the completion time of project time goes up, indirect costs or IC goes up, at the same time as direct costs goes down. Hence, the Time-Cost Tradeoff assists the project manager to hit upon the sweet-spot amid rising costs of explicit activities and reducing general costs of project.

Figure: Project time-cost Curves

Source: Anholcer and Gaspars-Wieloch (2011)

Quality, Cost, and Time has had been described as an Iron Triangle for assessing the success of project. The researchers and practitioners have extensively investigated in relation to Quality-Cost-Time triangle model in a Project Network underneath improbability, predominantly it concentrates on solo stricture (Quality/Cost/Time solitary) or grouping flanked by strictures. Recognizing the likelihood to meet up the targets as regards quality, cost and time is vital, particularly all through the phase of planning in project. Project manager might obtain information insights as regards the level of buoyancy to meet up the goal and probable risk in the upcoming times. Nevertheless, none of the preceding studies has pooled the quality, cost and time in improbability. In this framework, quality is a standard or prerequisite to be met up with disastrous and unbeaten likelihood. Further it has results or effect on added cost and added time for oddness. Further the time and cost have their own correlation and shape of improbability, where planned technique is to assess likelihood of a project whether it met up its Quality-Cost-Time goal in improbability (Saputra and Ladamay, 2011).

The point is that quality, cost and time are found as pointers for assessing success of the project. These three pointers are rightly termed as The Iron Triangle, where an measurement prior to operating and managing the project is vital for assessing competence to meet up the three restraints in the forms of quality, time and cost. In this framework, a set of plans relating to action may well be organized through the management in the planning phase as protective or reaction in relation to the measurement outcome. In the Figure the conceptual model for Quality-Cost-Time relationship is shown. In the model, the time is signified by the baseline time and added time if the Quality-Cost procedure points to malfunction to meet up quality prerequisite. Further, cost is signified by cost utility and supplementary cost if Quality-Cost procedure points towards malfunction to meet up quality prerequisite. Moreover, the quality is signified by a Quality-Cost method with success and failure likelihood and a set of alternatives for remedial actions/results for failure state of affairs.

Figure: Quality-Cost-Time Relationship Model

Source: Saputra and Ladamay (2011)

Furthermore, the issue is that as how we decide on a suitable network of controlling and managing project to contain the reassigning procedure of Quality-Cost-Time from start to the end step in the project. For this project managers necessitate a probabilistic branching from the arch/node. It is in this context that there is recommended to attempt to make use of the Generalized Activity Network proposed by Dawson and Dawson (1995, 1998). They propose a model of looping, where a few activities might be carried out more than one time. Dawson and Dawson (1995, 1998) explicate this sort of activity might take place if either options effort are specific or if the assignment exists in a assignment loop. The likelihood might alter in every looping procedure. The straightforward model that is used in Dawson and Dawson is Test and Fix Model. This model is a category of rework or mending activity, which is an action carried out whilst the test is failed. This is shown in the Figure.

Figure: Test and Fix Looping Model

Source: Saputra and Ladamay (2011)

An additional category of loop model is re-processing, which is if a test is failed, the project ought to recur a few procedures prior to the test with comparable duration and cost evaluation as in the first looping model. This is shown in the Figure.

Figure: Model of Re-processing

Source: Saputra and Ladamay (2011)

The noticeable point is that as how is the significance of all-inclusive assessment on the Iron Triangle of Quality-Cost-Time in a project in improbability state of affairs. In this regard, there is recommended an index termed as Project Reliability. Through forming the quality as a success/failure procedure, Project Reliability develops into an index of measurement to assess the likelihood of completing project within the cost and time and target of cost and surpasses the whole Quality-Cost necessities. However, this is highlighted as so composite and direct the project managers have a modest pedestal on their estimation because of a unclear importance of probability. Recognizing the nature of the entire probabilities and accommodating the risks in choice is significant in project controlling and managing. Hence, in order to successfully compete the project through effective project management and controlling, project managers are recommended to use Test and Fix Model in managing Quality-Cost-Time Iron Triangle. Project managers necessitate a probabilistic branching from the arch/node. It is in this context that there is recommended to attempt to make use of the Generalized Activity Network proposed by Dawson and Dawson. Test and Fix Model is a category of rework or mending activity, which is an action carried out whilst the test is failed. Further loop model is re-processing, which is if a test is failed, the project ought to recur a few procedures prior to the test with comparable duration and cost evaluation as in the first looping model.

THE CASE OF DELHI METRO PROJECT

For putting into action the Delhi Metro Project, the Government of India and Delhi Government established a 50:50 joint venture firm in the form of Delhi Metro Rail Corporation Ltd in 1995. The Delhi Metro Rail Corporation Ltd came out with the completion of Phase I of the project in ten years, by the end of 2005. In India, foremost infrastructure projects have had been generally found stalled due to a lack of finances, political interfering, need of professionalism and liability, assets disputes, corruption, etc. Hence, even prior to the start of the project, the Delhi Metro Rail Corporation Ltd successfully tried to put in place effectual tools and techniques to make certain the flat advancement of the project. As a result, Delhi Metro Rail Corporation Ltd is now recognized for completing the projects within time and cost without delaying the schedule and overrunning the costs (ICMR, 2006). Delhi Metro Project has had been cited as a leading model of a project management story of success particularly in the public sector. The project is specifically known for successfully completing the projects within time and cost, with no probability of delaying in scheduling and overrunning cost. Currently wholly operational and termed an urban phenomenon, Delhi Metro has established to be a cost-effective way out for the transportation afflictions of country’s emergent metropolises. Its time-cost efficiency model is so successful that urban planners all through India at the present take the Delhi Metro project as a standard for unbeaten public sector transport projects (Mohapatra, 2011).

Delhi Metro Projects are completed within time and cost adopting a definite model of project management defined by E. Sreedharan, known for metro man. The project management model is focused on four success factors (Mohapatra, 2011):

Appointing right persons as project managers possessing skills and experiences

Management having sole power to hire people decide on tenders, and managing funds for helping out reducing delays, fix answerability and put up a sagacity of ownership

Detailed project planning comprising funds necessary for the whole project, delineated prior to the start of the project

Methodical recognition of the project plan and alliance of stakeholder’s vision, forming transparency and a collective concentration on outcome.

The point is that project managers in Delhi Metro generally make use of 'time and budget' criteria to make out project success generally overlooking what factors direct to a doing well project. However, considering the more and more handling of projects by Delhi Metro across the cities in the country there requires to be recommended a more effective time-cost model of project management. This is in the light of the conceptual framework developed, where effective models have been described.

DISCUSSION

As per Kaliba, Muya and Mumba (2009), time and cost comprise two decisive components of the project management. If project time and costs surpass their planned targets, the project turns out to be disastrous, where the financial support profile no longer goes with the budget necessity and additionally slippage in the schedule might result in collapsing the project in many a times. In the case of Delhi Metro Project Delhi Metro Project has had been cited as a leading model of a project management story of success particularly in the public sector. The project is specifically known for successfully completing the projects within time and cost, with no probability of delaying in scheduling and overrunning cost. Its time-cost efficiency model is so successful that urban planners all through India at the present take the Delhi Metro project as a standard for unbeaten public sector transport projects. The project has to bear costs of penalty whilst the project completing time is deferred. As shown in the Figure, whilst the completion time of project time goes up, indirect costs or IC goes up, at the same time as direct costs goes down. Hence, the Time-Cost Tradeoff assists the project manager to hit upon the sweet-spot amid rising costs of explicit activities and reducing general costs of project. This is what the case of project management by Delhi Metro.

More importantly Delhi Metro Projects are completed within time and cost adopting a definite model of project management focused on four success factors : appointing right persons as project managers possessing skills and experiences; management having sole power to hire people decide on tenders, and managing funds for helping out reducing delays, fix answerability and put up a sagacity of ownership; detailed project planning comprising funds necessary for the whole project, delineated prior to the start of the project; and methodical recognition of the project plan and alliance of stakeholder’s vision, forming transparency and a collective concentration on outcome. However, for Delhi Metro Projects, there requires Quality-Cost-Time triangle model considering its expansion across the country and maintaining of the running projects. Adopting Quality-Cost-Time triangle model (Saputra and Ladamay, 2011), for project managers in Delhi Metro, the issue will be as how we decide on a suitable network of controlling and managing project to contain the reassigning procedure of Quality-Cost-Time from start to the end step in the project.

Further for successful implementing Quality-Cost-Time triangle model, the project managers in Delhi Metro will need to adopt Test and Fix Model, as Generalized Activity Network proposed by Dawson and Dawson (1995, 1998). This model is a category of rework or mending activity, which is an action carried out whilst the test is failed. Further an additional category of loop model will be for re-processing, which is if a test is failed, the project ought to recur a few procedures prior to the test with comparable duration and cost evaluation as in the first looping model.

CONCLUSION AND RECOMMENDATIONS

Project management is just coped with three balls concurrently as it entails keeping up an excellent poise amid bringing on time, within budget whereas guaranteeing quality. Cases of big and compound projects being brought on time and within cost are many globally. In India, for case in point, construction of the Delhi Metro Rail is found to be one of the more unbeaten projects. Generally, the trouble of time and cost over-runs carries on a general troubling vicinity in both public and private sector projects in India. Time and cost comprise two decisive components of the project management. If project time and costs surpass their planned targets, the project turns out to be disastrous, where the financial support profile no longer goes with the budget necessity and additionally slippage in the schedule might result in collapsing the project in many a times. In the case of Delhi Metro Project Delhi Metro Project has had been cited as a leading model of a project management story of success particularly in the public sector. The project is specifically known for successfully completing the projects within time and cost, with no probability of delaying in scheduling and overrunning cost. Its time-cost efficiency model is so successful that urban planners all through India at the present take the Delhi Metro project as a standard for unbeaten public sector transport projects. For Delhi Metro Projects, there requires Quality-Cost-Time triangle model considering its expansion across the country and maintaining of the running projects. Further for successful implementing Quality-Cost-Time triangle model, the project managers in Delhi Metro will need to adopt Test and Fix Model, as Generalized Activity Network.

REFERENCES

Anholcer, M. and Gaspars-Wieloch, H. (2011), “Efficiency analysis of the Kaufmann and Desba-zeille algorithm for the deadline problem”, Operations Research and Decisions 2011/1, the Publishing House of the Wrocław University of Technology, Wrocław.

Dawson, C. W. and Dawson, C. J., (1995), “Generalised activity-on-the-node networks for managing uncertainty in project,” International Journal of Project Management, 13, 6, pp. 353-362.

Dawson, R. J. and Dawson, C. W. (1998), “Practical proposals for managing uncertainty and risk in project planning,” International Journal of Project Management, 16, 5, pp. 299-310.

Diaby, M., Cruz; J., and Nsakanda, A. (2011), “Project crashing in the presence of general non-linear activity time reduction costs”, International Journal of Operational Research, 12, 3, pp.318–332.

Kaliba, C., Muya, M. and Mumba, K. (2009), “Cost escalation and schedule delays in road construction projects in Zambia”, International Journal of Project Management, 27, pp.522-531.

Olawale, Y., and Sun M. (2010), “Cost and time control of construction projects: Inhibiting factors and mitigating measures in practice.” Construction Management and Economics, 28 (5), pp.509 – 526.

Saputra, Y.A. and Ladamay, O. and Siti A. (2011), “Project Reliability: Probability of a project meets its Quality-Cost-Time Target Under Uncertainty”, International Journal of Electronic Business Management, 9, 3, pp. 220-230.

Vanhoucke, M., Vereecke, A., and Gemmel, P. (2005), “The Project Scheduling Game: Simulat-ing Time/Cost Trade-Offs in Projects”, Project Management Journal, 36, 1, pp.51–59.

Web sources

FICCI (2012), “Project Management in India Insights from Six Key Sectors”, Project Management Institute. [Online] available at http://www.pmi.org.in/downloads/reports/Project.Management.India.Insights.Six.Key.Sectors.pdf [accessed on 11th June., 2015]

ICMR (2006), “The Delhi Metro Project: Effective Project Management in the Indian Public Sector”. [Online] available at http://www.icmrindia.org/casestudies/catalogue/Project%20Management/Delhi%20Metro%20Project [[accessed on 12th June., 2015]

Mohapatra, A. P. (2011), “Building India with Project Management”, Manage India, September, 3, 4. [Online] available at http://pmi.org.in/manageindia/volume3/issue04/manage.india.pdf [accessed on 11th June., 2015]