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Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

Mr. Vijay Sane , Project Director, LIFE REPUBLIC,

27th Sep 2013

2Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

Agenda

• Company & Project Brief

• Objective & scope

• Key Challenges for Mega Townships

• Method, Practices & SOPs adopted

• Quantified Results Achieved

• Critical Success factors

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Project Background

• Kolte-Patil Developers Limited is developing a mega township

“LIFE REPUBLIC” near Pune

• Land size of 384 acres of which 1st phase of 147 acres, almost

3.5 million square feet of construction within 30 months.

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Objective & Scope

• To implement globally recognized Project Management processes

• Determine project life cycle for diversified Product mix (Township).

• Focus on the Enterprise Environmental Factors which enhance or

constraint organizational goal

• Develop project team with required skill ,tools & techniques and

team environment

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Challenges

• First of its kind of a mega township of Project for the Company

• Complex scheduling – multiple activities and dependencies

• Control cost to maintain baselines & accurate cash flow projections

for fund management

• Communication challenges - Multiple agencies & Stakeholders.

• Identification of Uncertainties & Risks – Internal & External

factors

• Utilisation & coordination of Corporate Knowledge Base

• Align the team for Business Plan & strategic goals set for the Project

• Strengthen the Project Management Process & Managment

information system

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Management decided to use

Project Management Institute’s

guidelines PMBOK to address the

challenges

Presentation Title

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Methodology Followed

• Involvement of PMI associates

– Appointed Big Bang Consultancy who are associated with PMI

• Assessment study

– As Is study of existing processes

• Training need identified to enhance skill & knowledge

– Project management training to all team members

• Identification of Project Management techniques e.g.

– Process enhancement (Input - Tool & techniques – Out put)

– Organization structure align to Process

• Implementation of SOP’s with identified techniques

– Implementation of techniques on pilot project through handholding

– Review process & performance

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Methodology Roadmap

1

ProjectCharter

2

Assessment Study

3 Recommend

Tools&

Techniques

4

Apply

Techniques

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Sustenance

1. Deciding project mission

2. Decide broad scope, timeline, budget, etc.

1. Study existing processes, documents

2. Identify gaps, pain areas, wish list

1. Propose project management techniques

2. Propose IT tools

1. Implement tools and techniques

2. Implement IT solutions

1. Create Standard Operating Procedures

2. Formation of Project Management Office (PMO)

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Tools & Techniques

As Recommended By

PMI

Presentation Title

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Tools and Techniques - Implemented

• Setting-up Project Management office (PMO)

• Changes in Organization Structure

• Communication Plan

• Responsibility Matrix – RACI

• Risk Register

• Business Workflow

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Setting PMO & Function Flow - Sample

•Scheduling•Estimation•ERP team

•PMO•Site PM•Procurement•D&D•Services•HR & Finance

•Site PM•Site team

PMOPlanning Committee

ExecutionProcurement

D&D

Sales

HR

Finance

ERP

ApprovedSchedule & Budget

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Techniques Used - Communication Plan Sample

Stakeholders Purpose of communication Medium of communication

Frequency of communication

Scheduling team/DGM Construction/Estimation team/Procurement team/D&D team/Finance team/MIS team

1) To discuss and get approval from VP-OPERATIONS for prove quarterly/monthly plan - schedule and budget 2) To declare expected hurdles in achieving the plan i.e. risks 3) to announce backup plan to counter risks

1) Face-to-face Meetings 2) to announce Minutes Of Meeting

Every week on Wednesday at 2.30 pm

Scheduling team and Estimation team

To decide cashflow per work period 1) Face-to-face Meetings 2) to announce Minutes Of Meeting

Every week on Friday at…….

Scheduling team/ D&D team/Estimation team/Procurement team

1) To understand if there are any issues in getting necessary drawings or specification and adjusting schedule as per the position 2) To review material specifications, availability of material in the market, price position 3) Finalize BOQ

1) Face-to-face Meetings 2) to announce Minutes Of Meeting

Every week on Friday at…….

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Communication Management –Techniques used

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

• Communication Plan- Inter phase & intra phase communication

• Use of ERP /IT system for instant communication

• Defined Templates for Risk , schedule net works ,Cash flow ,

Budget (CBS), WBS , Contracts, KPI etc,

• Process flow charts are prepared showing process dependency

• Communication flow is monitored & controlled by PMO

• Developed Dash boards & performance indicator linked through

ERP

• Defined communication channels- RFI, Transmittals/Submittals,

site instructions, drawing issue registers, NCR, change/Variation

requests etc.

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Techniques Used – RACI Sample

Major Activities Responsible Accountable Consult InformTo ensure monthly plan target achievement - cash flow

DGM Construction

DGM-PMO VP-OPERATIONS Project Director

Getting all drawings from D&D as per schedule

D&D - respective owner

DGM-PMO VP-OPERATIONS Project Director

Preparing monthly/ quarterly schedule

Planning Manager DGM-PMO VP-OPERATIONS DGM- Construction

Preparing quarterly estimation and cash flow

Estimation Manager

DGM-PMO VP-OPERATIONS DGM- Construction

Giving intimation of procurement plan

Planning Manager DGM-PMO VP-OPERATIONS DGM- Construction

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Business Process Workflow – Scope Change Control

Scope ChangesFromD&D

Scope ChangesFrom

Consultant

Scope ChangesFrom

Project Manager

Project Management

Office

ConsultWith Senior

Management

MajorChanges?

YES

No

TakeDecision

ScopeChangeRequest

Acceptedor

Rejected

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Techniques Used – Change Management Sample

MONTHLY CHANGE NOTE TRACKER -MAY 13

SECTOR CHANGE DUE TO AMOUNTAPPROVAL

STATUS REMARKS

R2

Due to change in Drg & Labor Rate Escalation

1,113,827.70

APPROVED

Budget utilized from contingency for design change &

Escalation for increase in

rates

Due to Site Condition3,844,381.

20Due to Site Condition and Escalation of Labor Rate

1,015,005.00

R4As per Site Condition 107,542.00

APPROVED

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Techniques Used – Risk Register Sample

Last Updated: 30th June 2011Print Date:

Raised By Date Raised DescriptionImpact Description

Risk OwnerManagement/ Mitigation measures

Likelihood

1(low) -5(high)

Impact

1(low) -5(high)

Total risk rating

Resolution required by date

Status Update

(D&D) 3rd May 2013 Delay in issue of final working drawings for R2 sector

Time/Cost SDS Issue has been raised in CRM.SDS to release schedule of drawings & log every week

5 5 10 30-May-11

PendingStatutory 15th May 2013 Delay in getting building

approval plan for R2Time/Cost SDS Excavation & PCC work is in

progress to minimize delay.R2 sector amenities and landscape area work shall be started.

5 5 10 15-Jul-11

OpenProcurement 15th May 2013 Finalization of RMC supplier

vendorTime/Cost Procurement LOI to issued on urgent basis to

M/s Ashtech Pvt. Ltd5 5 10 Urgent

Closed Construction 3rd May 2013 Delay in construction of

Labour camp & steel yardTime/Cost Construction Contractor shall be awarded

immediately or work shall be executed by civil work contractor at R2 sector

4 4 8 Urgent

IN progressThe likelihood scale can be defined as :- 1 Remote, 2 Low, 3 Moderate, 4 High & 5 Very High.The impact scale can be defined as :- 1 Negligible, 2 Low, 3 Moderate, 4 High & 5 Extreme.Total Score 3-5 Monitoring and mitigation only required, action to be taken if risk develops to as higher level.Total Score 6-9 Moderate risk - to be avoided if reasonably practicable. Mitigation measures to be implemented. Monitoring essential and action to be taken where possible.Total Score 10-15 Extreme risk - Must be addressed at high level and contingency plan implemented

Risk & Issue Register

Kolte-Patil I-VEN Townships (Pune) Pvt. Ltd

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Risk Management

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

• Formation of Risk Committee- Representative from various

department – Design, Execution, Planning etc.

• Risk identification – Identifying risks and preparing risk register

• Plan Risk Response– Deciding risk response action plan

• Risk meetings – Monitor risk response plan, identify new risks

• Risk Register – Continuously updating risk register by adding new

risks

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Organizational Knowledge – OPA - Lesson Learned Document

Date lesson ID CategoryWhat went

Right?What went

Wrong?Root Cause

3rd Sept 2012

EXE002 Execution Aluform material landed late and hence delayed R7 sector work

Delay in material clearance from custom

3rd Sept 2012

DAD001 D&D Construction schedule was ready well in advanced which helped in getting GFC’s

Received plan well in advance

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Results

Presentation Title

21Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

Benefits – Reduced Cost Variance – After Implementation of PMI Techniques

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Benefits – Reduced Schedule Variance – After Implementation of PMI Techniques

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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• Improved Cash-flow Projections & achieving the Cost target

• Improved Cost Control

• Improved Communication due to set frequency of meetings.

• Reduction in schedule variance from 35% to 15%

• Reduction in decision making time due to timely availability of

information.

• Enhanced Data Quality & accuracy due to improved report formats

& MIS.

• Improvement in Team Moral & Development of Human Resources

Quantifiable Result – Cost & Schedule Variance Bar Diagram

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

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Critical Success Factors

Presentation Title

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Critical Success Factors

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune

Stakeholder influence, risk, and uncertainty

Cost of changes

Project Time

High

Low

• Enhanced OPA• RISK Plan • Approval at each stage• Front end Design• Controlled thresholds for

Change or Variations

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Critical Success Factors

• Project supported and driven by Senior Management

• Use of PMI techniques based on PMBOK® Guide

• Project Management training to team members

• Improved team communication

• Clearly defined roles, responsibility and authority e.g. RACI

• Modification of Organization Structure

– Higher authority to Project Manager

– Formation of centralized Project Management Office

• Customization of ERP, enhanced usage of MS Project

• Implementation of Project & process Audit for continual

improvement.

Use of PMI guidelines to establish method, process & practices at LIFE Republic, Pune