CONSTRUCTION MANAGEMENT AND ADMINISTRATION

UNIT-II

Unit II: list of topics

1. Large scale production

2. Economies of large scale production

3. Stages of Construction planning and scheduling

4. Work Breakdown Structure

5. Bar charts, limitations of bar charts

6. Network techniques in construction management

7. CPM and PERT

8. Network Problems

What was the price of a simple mobile phone 10years back?

What is the current market price of a Desktop?

What was the price of a desktop 10years back?

What is the current market price of a simple Mobile phone?

What could be the reason for reduction in price of these products?

Scale of production The scale of production indicates to

– The aspects/resources used – The quantities of commodities produced and – The techniques of production adopted

Production may be carried on a small scale or on a large scale

Small scale production: When a concern functions by using less capital and small quantities of other aspects of production, the scale of production is said to be small

Large scale Production: A firm using more capital and larger quantities of other aspects is said to be operating on a large scale

A. Internal Economies 1. Technical economies2. Managerial economies 3. Marketing economies4. Financial economies5. Risk bearing economies6. Economies of research7. Economies of welfare

B. External Economies1. Economies of concentration2. Economies of information3. Economies of welfare4. Economies of specialization

Economies of large scale production

Economies of large scale production

A. Internal Economies

1. Technical Economies –– Improve production by Employing good equipments and techniques – Reduce the per unit cost of production

2. Marketing Economies – – Raw materials procurement in lump sum can dictate constructive terms

with suppliers in the form of better quality inputs, prompt delivery, transport concessions etc.

A. Internal Economies

3. Managerial Economies – A huge concern can afford to employ experts to oversee and control a variety of

departments– There may be a separate head for manufacturing, assembling, packing, marketing

and general administration etc. This directs to functional specialisation which increases the productive efficiency of the concern

4. Financial Economies – A huge firm can acquire cheap and timely finance both from banks and the market

since it possesses huge assets and goodwill– It can also bring in additional capital by issuing shares and debentures in the capital

market.

5. Risk Bearing Economies – A huge firm is in a better position in spreading its risk– It can make various articles and sell them in diverse regions– Huge concern is proficient in handling risks by counter balancing the loss of one

product by the gain of the other.

6. Economies of Research – A huge concern holds larger resources than a small concern and can

institute its own research laboratory and employ trained research workers

– When they invent new production techniques or progression the latter become the property of the firm which utilises them for increasing its output and reducing costs

7. Economies of Welfare– A large concern with its large resources can provide better working

conditions in and outside the factory– Though the expenses on such facilities are very heavy yet they tend to

increase the productive competence of the workers which helps in improving production and reducing costs

A. Internal Economies

B. External Economies1. Economies of Concentration – When an industry is focused in a specified

region all the member concern harvest some widespread economies. Skilled workers are available to all firms. Modes of transport and communications are considerably improved. The industry may ask the railway authorities for additional facilities for more wagons, loading and unloading etc.

2. Economies of Information – The fruits of research in the form of novel innovations are passed on to the concerns through a scientific journal

3. Economies of Welfare – Relating to a huge concern an industry is in a more advantageous status to give welfare facilities to the labourers. It may get land at concession rates and acquire facilities from the municipal corporations for setting up housing colonies for the labourers, public health and amusement facilities

4. Economies of Specialisation – When an industry enlarges in size, concerns begin specialising various processes and industry benefits as a whole.

Advantages of Large scale production1. Efficient use of capital equipment: There is large scope for use of machinery,

which results in lower costs. A Large producer can install an up-to- date and expensive machinery. He can also have own repairing unit. Specialized in machinery can be employed for each job. The result is that production is very economical. large Producer can work it continuously and reap resulting economies

2. Using of specialized labor: Specialized labor produce a large output and of better quality. It is only in a large business organization that every person can be put on the job that he can best perform.

3. Better utilization of special in management: The use of capable manager's time in an enlarged scale production. His assistance and specialized may be used in a large-scale production where his ability is more fruitful.

4. Economies of buying and selling: While purchasing raw material and other accessories, a big business can secure especially favourable term on account of its large custom. He can attract customer by offering a greater variety and by ensuring prompt execution of the orders, placed with it when he is selling a product.

5. Economy in rent: If a factory made to produce large Quantity of goods, the same amount of rent is divided over a large output

6. Experiment and research: A large concern can afford to spend liberally on research and experiments. Successful research may lead to the discovery of cheaper process

7. Advertisement and salesman ship: A big concern can spend large amount of money on advertisement and salesmanship. Money spent on advertisement per unit comes to a low figure when production is on large scale

8. Utilization of by-products: A big producer will not have to throw away any of it's by products or waste products. It will be able to make an economical use of them

9. Meeting adversity: A big business can show better resistance in times of adversity. It has much better recourses. Losses can easily bear.

10. Cheap credit: A large business can secure credit facilities at cheap rate. Its credit in the money market is high and banks are willing to give advance. Low cost of credit reduces cost of production.

Advantages of Large scale production

What are the Functions of Construction Management?

The function of construction management are1. Planning and scheduling2. Organizing3. Staffing4. Directing 5. Controlling 6. Co-ordinating

Stages of Construction planning

Planning for CONSTRUCTION may be done in the following two stages

1. Pre-tender planning

2. Post-tender or Contract planning

Pre-tender planning

Pre-tender planning includes the following steps

1. Examining drawings and specifications

2. Site investigation and market survey

3. Identify alternate methods select best method

4. Estimation of quantities and duration

5. Preparation of tentative construction schedule

6. Deciding the overheads, margin and finalizing the tender price

Post-tender planning or Contract planning

Contract planning involves the following steps

1. Establishing a good communication system

2. Evaluating alternative construction methods identified during pre-

tender stage

3. Studying inter-relationships of various items of work and

finalisation of proper sequence of operation

4. Calculating the phased requirement of construction materials

5. Determining the phased requirement of plant and machinery

6. Preparing details of man power requirement

Scheduling

1. Construction schedule

2. Labor schedule

3. Material schedule

4. Equipment schedule

5. Finance schedule

Construction schedule

Project Name:Location:Approved Cost Estimate (ACE):

 

S.No. Item of Work

Total Quantit

yUnits

Month-1 Month-2 Month-3Week

1 Week2 Week3 Week4E A E A E A E A

 1 Excavation   100000  cu.m                

 2 Foundation concrete  25000  cu.m                

34

E:Estimated ProgressA:Actual Progress

Labor schedule

Project Name:Location:

 

S.No. Class of LaborTotal

Quantity

Month-1 Month-2 Month-3

Week1 Week2Week3 Week4

E A E A E A E A1 Foreman 50                2 Mason 400                3 Welder 20                4 Barbenders 50                5 Unskilled labor 1000                6 Electrician 30                7 Carpenter 120                

E:EstimatedA:Actual

Prepared By_____________

Material scheduleProject Name:

Location:

 

S.No. Material Total Quantity Units

Month-1 Month2 Month3

Week1 Week2 Week3 Week4

E A E A E A E A1 Cement                    

2 Bricks                    

3 Aggregate                    

4 Steel                    

5 Bitumen                    

6 Lime                    

7 Sand                    

E:Estimated

A:Actual

Prepared By_____________

Equipment schedule

Project Name:Location:

 

S.No. Equipment Total Quantity, No.s Capacity

Month-1

Week1 Week2 Week3 Week4E A E A E A E A

1 Concrete plant                   

2 Vibrators                    3 Welding set                    4 Truck                    5 Transit mixer                    6 Boom placer                    7 Loader                    

E:EstimatedA:Actual

Prepared By_____________

Finance schedule

S.No Month Expenditure (E) Receipts (R) Working capital (E-R)

Work Breakdown Structure (WBS)

• A technique to determine functional elements of a project and their inter-relationship

• Used to establish the hierarchical order• It breaks the project into recognizable and manageable

systems, sub-systems, discrete activities– System into no.of sub-systems– Sub-systems into no.of discrete activities /tasks

• It identifies discrete activities/tasks that can be planned, estimated, scheduled, executed and controlled

WBS for compound wall construction

Compound wall construction

Excavation

Lean concrete in foundation

Masonry in foundation

Damp Proof Course

Masonry in super structure

Pointing

Coping

Work Breakdown

Guidelines for work breakdownIf the duration of an activity< project duration/1000 then

level of detail is too greatIf the duration of an activity> project duration/10 then level

of detail is too shallowThe division into activities should take into account the

complexity of job (eg. Concreting), men & machine involvement

If the network is intended to be presented to top management keep minimum details, for supervisory personnel full detail network should be presented

Bill of quantities for the work gives a fair idea of the activities to be considered

Typical WBS for a building work

Building

Site clearance and excavation

Site clearance

Excavation

Anti-termite treatment

Foundation and DPC

Lean concrete in foundation

Masonry in foundation

DPC

Super structure including roofing

Plinth beams

Columns

Beams and slabs

Sanitary and water supply

service

Electrical services Finishes

Interiors

Plastering

Flooring

Painting

Exteriors Roof treatment

Approach road and compound

wall

Bar chart / Gantt chart

Henry Gantt developed this technique around 1900 Conventional method of scheduling used in construction industry Bar chart consists of two coordinate axes Time is denoted on X-axis and on y-axis jobs/activities to be

performed Each job is depicted in the form of a horizontal line or bar and the

length of a bar indicates duration of the job/activity Some jobs may be taken up Concurrently thus bars for the same may

run parallel to each other The level of detail of the activities and the unit of time is determined

by the intended use (eg. management meeting or executives meeting)

Example of preparing bar chart for equipment foundation

S.No. Activities Time (days)1 Layout and excavation for foundation 52 Placing lean concrete (mud mat) 13 Fabricate shuttering 34 Cutting and bending of reinforcement 45 Reinforcement fixing 26 Shuttering 17 Concrete pouring 1

Bar chart 1 in MS Project

Limitations of bar charts

1. Interdependencies of activities– Bar chart does not show clearly the interdependencies among the

various activities2. Project progress

– A conventional bar chart does not show the progress of work, it can be made useful by modifying with coloring/hatching to show progress

3. Quantities of items of work– The bar chart depicts the time schedule for various activities but it

does not indicate the quantities. It may be improved by showing quantities of work against individual items

4. Critical activities– Bar chart does not indicate critical activities requiring careful attention

Bar chart 2 in MS Project

Pickup the incorrect statementA. Various functions under each activity are shown by one bar on Bar chartsB. Bar chart establishes the interdependency of one event on anotherC. Only approximate percentage of the completed work is reportedD. None of the above

Bar charts are suitable for A. Minor worksB. Major worksC. Large projectsD. All the above

Henry Gantt developed Bar charts for planning and scheduling the projects inA. 1880B. 1900C. 1920D. 1940