1. Save USD 25 bbiilllliioonn ppeerr aannnnuumm!!PPRROOJJEECCTT MMAANNAAGGEEMMEENNTT PPRRAACCTTIICCEESSffoorr PPoowweerr//CCoonnssttrruuccttiioonn MMaannaaggeemmeennttpprrooffeessssiioonnaallss wwiitthh eexxaammpplleess//pphhoottooss!!bbyy PPrrooff.. SSaannjjeeeevv BBaahhaadduurrPPrrooggrraamm DDiirreeccttoorrIInnssttiittuuttee ooff AAddvvaanncceedd MMaannaaggeemmeenntt aanndd RReesseeaarrcchhAApppprroovveedd bbyy AAIICCTTEE,, MMiinniissttrryy ooff HHRRDD,, GGoovvtt.. ooff IInnddiiaa..

2. Project MMaannaaggeemmeenntt ffoorr PPoowweerrSSeeccttoorrPPrreesseennttaattiioonn ddiissccuusssseess::SSccooppee ooff PPrroojjeecctt MMaannaaggeemmeennttIInnddiiaann PPoowweerr SSeeccttoorr pprroojjeeccttssMMoonneeyy lloosstt oonn TTiimmee//CCoosstt oovveerrrruunnss 3. Scope of Project ManagementThe topics proposed to be covered in this Project ManagementProgram are:Introduction /Overview/ImportanceProject ManagementConcepts & StandardsProject Formulation andAppraisal / Approval ProcessesEnvironment ImpactAssessment (EIA)Human Resources: Issues,Challenges and SolutionsStrategic Project FinancialManagementTips and Techniques for CostEstimation in ProjectManagementAnalyzing Risks in ProjectManagementEPC: Engineering,Procurement, ConstructionProcurement Managementand e-procurementQuality Assurance andInnovationMicrosoft ProjectDemonstration(CPM/PERT/GANTT Charts)Productivity, Efficiency andTime ManagementLive Case Study anddiscussionsReferences 4. Project Delays Cost Rs 1,24,000 CrConsequences of Time Delays Total projects delays cost Rs 1,24,000 Crores., informsSh M.S Gill MoS, Ministry of Statistics & ProgramImplementation. Out of 567 projects costing more than Rs 150 croreseach, 375 projects reported delays from 1 month to72 months. Causes are Land acquisition, getting Environmentclearances, protest by Local people, incomplete LandRecords, lack of coordination between differentagencies. Cost of delay is one third of India Plan Budget 2011-12 Sectors reviewed are Coal, Steel, Power, Petroleum,Railways, Road transport/Highways, Telecommunications Original cost of these projects was Rs 5,92,535 crores.(Source :Hindustan Times, 04 April 2011) 5. Objectives of Project Management Definition, Meaning and examples of Projects What does Project Management involve? What are the qualities of a Project Manager ? Reasons for Time and Cost overruns (Govt. of Indiaagencies studies) Solutions for cutting Time/Cost Overruns Role of Consultants/Engg. Contractors in Tendering Brief overview of the Program (incl. PERT/CPM) Research on the Power /Infrastructure Sector Focus on NTPC, Tata Power, Reliance Infrastructure(Ratio Analysis) References 6. Project Definition (ANSI/PMI 99-001-2004) Project is a temporary endeavour undertaken to create aunique product or service or result. ISO 10006 defines project as unique process, comprisingof a set of controlled and coordinated activities with startand finish dates, undertaken to achieve an objectiveconforming to specific project requirements includingconstraints of resources, cost and time. Project refers to a high value, time bound, mission ofcreating a product/facility with predeterminedperformance objectives in terms of quality specifications,completion time, resource constraints and budgetedcost. 7. Project ManagementProject Management is the discipline of planning.organizing, securing and managing resources to bringabout successful completion of specific project goals andobjectives.A project is a short term undertaking/endeavor, havinga defined beginning and end (usually constrained bydate, or by funding or deliverables), undertaken to meetunique goals and objectives usually to bring aboutbeneficial change or value addition.The temporary nature of projects stands in contrast toregular operations, which are repetitive, permanent orsemi-permanent functional work to produce products orservices. In practice, the management of these twosystems is found to be different, and requiresdevelopment of unique technical skills and the adoptionof separate management practices. 8. Project Management (Meaning) To understand project management, one mustunderstand what a project really is. Different types of Projects are cement projects,power projects, refinery projects, fertilizer projectsetc. In each case, the project is for setting up amanufacturing plant, but as soon as the plant isoperational, the project is deemed to have beencompleted. A project, is not a physical objective, nor is it theend-result. 9. Project Performance Objectives SCOPE defines the deliverables QUALITY of Product stated in terms of design,drawings and specifications RESOURCES includes manpower, materials andmachinery required to perform the work. COMPLETION TIME is the speed with which projectis executed. COST is the budgeted expenditure. 10. Examples of Complex Projectsinvolving Technology Reliance Industries Ltd., Jamnagar Tata Chemicals Ltd., Babrala NTPC Super Thermal Power Station Tata Motors Ltd., Pune Delhi Metro Rail Corporation India Habitat Centre NTPC Solar Power Project. 11. Reliance Industries Ltd. Refinery, Jamnagar, Gujarat 12. TATA Chemicals Ltd. Fertilizer Plant, Babrala,U.P 13. NTPC Super Thermal Power Station, Singrauli 14. Thermal Power Plant Lay out : 15. Thermal Power Plant Lay out : 16. TATA Motors Ltd. , Pune, Maharashtra 17. Delhi Metro Rail Corporation (DMRC) 18. DMRC 19. India Habitat Center- Lodhi Road, New Delhi 20. India Habitat Center, Lodhi Road, New Delhi 21. NTPC Solar Power Plant 15 Mw 22. What does a Project Involve 1 A Competent/Decisive and Experienced Team with Integrity. Identify Right Project Manager/GM (Project) with proven track record ofsuccessful execution of Projects Clear Focused Goals (Cost of generation of one Unit should be theLowest) Create clear Mission, Vision, Quality Policy and Organization Chart. Benchmark/Research the Project with worlds best 3 similar/betterexecuted projects (Ratio Analysis). Identify how much time and cost went into those projects (eg RelianceRefinery) Reduce it by 20% on the cost of manpower ,cost of RawMaterials, Cost of marketing, cost of manufacturing etc Estimate the targeted project cost and time required after benchmarkingby appointing proven Consultants such as MECON , EIL,TCE,PDIL etc. Get project funding sanction/approval/disbursement. BenchmarkInterest rates with International Rates to reduce cost of capital. Responsibility, authority, resources, team, time and processes arerequired for successful execution of Project. Identify proper project site location considering the right seismic zone,Road/Highway/Rail/Airport, connectivity, Alternative Fuel/Rawmaterial supplies (eg Tata Chemicals Babrala), clean water, 24*7electricity, sewage, internet, medical facilities, availability ofEngineers/Managers/skilled/unskilled manpower, Tax benefits. 23. What does a Project Involve- 2 Dealing/Negotiation with Suppliers/contracts, Contractors, Architects,Facility providers, District officials Local Politicians, Press, Insurance,Consultants, Service Providers , CAs, Cost Accountants, IT specialists,bankers, Environmentalists, Accountants, Taxation specialists, EnergyEconomists, Security , Maintenance Specialists,Horticulturists etc Defining the scope of various tenders, deadlines of execution,terms/conditions, penalty for late execution, inspection, testing andcommissioning criteria. Use of Computers/Telecom, PERT/CPM , CAD/CAM tools , SAP,DBMS,MISfor Monitoring and Control. Use correct tools, equipment, Govt. approvals, people and managementprocesses to execute the project both in targeted time and cost. Maintain quality of project execution. Maintain high levels of Productivity, Efficiency and TransparentMonitoring. Identify Critical Success Factors and Causes for Delays. Success of the Project depends on proven technology, Control of Provensources for delays and Factor all of them in your estimated time and costof your project. Target your project finishing time to be less by 30% E procurement can reduce purchasing costs and time. List all activities, people responsible and classify them into A/B/C inorder of importance/cost Plan an Incentive scheme for actual achievers who achieve targeted orbetter the Time/cost parameters planned and desired, 24. Project Life Cycle Phases 25. Project Clearance Cycle (Process) 26. NTPC Organization Chart (Top Mgmt.) 27. Why Projects Succeed or Fail ? Projects succeed because of people, processand structure. Projects fail because of inexperienced people,poor processes and structure. Introduce your project team to the criteria forproject success and failure, and make surethey know the difference! 28. Project Appraisal Project appraisal is a generic term that refersto the process of assessing, in a structuredway, the case for proceeding with a project orproposal. Project appraisal is the effort ofcalculating a project's viability. It often involvescomparing various options, using economicappraisal or some other decision analysistechnique. 29. Project FormulationPoints to be considered: The type and level of industrial activity. To match financial resources available withrequired amount. Prepare a sensible project report. 30. Broad Heads of Project Report General Information Project Description Market potential Capital Costs and Sources of Finance Assessment of Working Capital Other Financial Aspects Economic and Social Variables 31. India Infrastructure Projects In the last decade or so, development of IndiaInfrastructure Projects have been propelled specially intransport sector with adequate intervention of Central andState Governments aided by a host of private investmentsfrom within and outside the country. From independence, India Infrastructure Projects beartestimony of the inability of policymakers to transformambitious plans into action. The issues responsible forthis were: Counter guarantees State level issues Delay in financial closure Ability and willingness of the end customers to pay Need to develop independent regulators who can monitorand guide development of the sectorSource : India Business Directory 32. Cost Overrun A cost overrun, known as a cost increase or budgetoverrun, is an unexpected cost incurred in excess of abudgeted amount due to an under-estimation of theactual cost during budgeting. Cost overrun should bedistinguished from cost escalation, which is used toexpress an anticipated growth in a budgeted cost dueto factors such as inflation. Cost overrun is common in infrastructure, building,and technology projects. A comprehensive study of cost overrun published inthe Journal of the American Planning Association in2002 found that 9 out of ten construction projectshad underestimated costs. Overruns of 50 to onehundred percent were common. 33. Time/Cost overrunTable1 Sector-wise comparison of project implementation dataSource : NCAER, Govt. of India 34. Summary of NCAER Findings Infrastructure projects are hugely complex, due tomultiplicity of direct stake holders; intense marketand non-market interface; development in a settingwhere there are shortages of critical inputs; and weakgovernance. There has been an enormous increase in the scale ofoperations. While many things can be outsourced, thebasic initiating, regulatory, supervisory andgovernance functions are within the government, socapacity becomes a constraint. The evolving nature of policy is unavoidable but leadsto uncertainty and may slowdown the process ofinvestment. 35. Summary of NCAER Findings (Cont.) Opening up the sectors for private investment andoperation can speed up the process of executiononce the policy framework is in place. However, theneed for government intervention at differentstages would require equal capacity for decisionswithin the government. There is a need for prioritizing building up capacity.For example, building regulatory capacity forindividual sectors and across states is not easy. The experience in project execution has variedacross sectors and across states as well as betweenprivate and public sector project. Some high profileprojects have met the target levels of performancemetrics while the others have not. The Chinese experience highlights the need forstrong accountability mechanisms. 36. Time and cost overruns in infraprojects declining: Govt In a move that could encourage many biginvestments in the sector, the government hasstated that time and cost overruns in theinfrastructure projects has improved significantlyin 2010 compared to 1991. The overall cost overrun in projects (worth Rs 150crore or more) has come down from 61.6 per centin March 1991 to astonishing 21.10 per cent inSeptember 2010, a review by Ministry of Statisticsand Programme Implementation said. This became possible due to tightening ofprocedures and monitoring and feedback to theministries and departments implementing theprojects, it said. 37. Project Roles and ResponsibilitiesThere are many groups of people involved in both the projectand project management lifecycles. The Project Team is the group responsible for planning andexecuting the project. It consists of a Project Manager and avariable number of Project Team members, who are brought todeliver their tasks according to the project schedule. Project Manager/GM (Projects) is the person responsible forensuring that the Project Team completes the project. TheProject Manager/GM (Projects) develops the Project Plan with theteam and manages the teams performance of project tasks. It isthe responsibility of the GM/Project Manager to secureacceptance and approval of deliverables from the Project Ownersand Stakeholders. The Project Manager is responsible forcommunication, including status reporting, risk management,escalation of issues that cannot be resolved within the team,ensuring the project is delivered in budget, on schedule andwithin scope. 38. Role of a GM-Projects /Project Manager Leadership Role Monitoring Role Resource allocation Role Negotiation Role Liaisoning Role Disturbance handling Role Legal Representative Role Entrepreneurial Activity Communication dissemination Role Decision making Role 39. Essential Soft Skills for ProjectManagers12 essential skills required for good Project Managers are: Effective Communication and Consultation Conflict and Crisis Management Flexibility, Adaptability and Creativity Selfless Leadership Efficient Teamwork Good Negotiation /Techno- commercial skills Organizational Effectiveness Problem Solving and Prompt Decision Making Professionalism and Ethics Trustworthiness Self-control Learning and Development 40. Critical Success Factors (1 of 2 ) Based on Review of 187 Centre Funded Projects-Planning Commission states causes of delays to beavoided for Success of the Projects, are: Poor Project Formulation Changes in Design or Scope Midway Inability of Project Mgmt to take Quick decisions Mgmt Problems such as Personnel, Labour -Contractor disputes, Mismatch of Eqpt. Specifications Poor Monitoring (Ideal - Weekly monitoring) According to Sh N Vittal, former CVC, Corruptionincreases project costs 41. Critical Success Factors (2 of 2 ) Inadequate/Untimely Release of Funds unforseenfactors/ Natural Calamities. Some cost overruns due to Inflation Due to Contracts incompleteness, some Delays/costoverruns are inevitable Percentage cost overruns also escalate with length ofImplementation Bigger projects lead to much higher Cost overruns Defective Planning leads to Time/Cost Overruns Southern States have marginally shorter delays/ lesserCost escalation. Changes in Duty structure/Exchange Rates duringproject execution.Delhi School of Economics (DSE) 42. Contracts and Projects RiskManagement One of the critical outcomes of contract and project management isto ensure that risks to owners and contractor are identified andcontrolled in a proactive way so that both parties are satisfied withthe project outcome. While world class project and contractmanagement cannot, of itself, make risk go away, it can, andshould, identify the risks and opportunities, determine who isresponsible for managing each individual risk, and for theconsequences should the risk occur. Knowledge to move contracts and project management from thetactical/reactive to the more important proactive/strategic focus. Critical understanding of the risk minimization process. How to examine both the threats and opportunities facing contractsand projects from both a top-down and bottom-up perspective. Skills in allocating contract and procurement risk. Ability to identify the warning signs of cost overruns, scheduledelays, and poor quality, as early as possible in the project tominimize or mitigate the likely impact. 43. 10 Golden Rules ofProject Risk Management Rule 1: Make Risk Management Part of Your Project Rule 2: Identify Risks Early in Your Project Rule 3: Communicate About Risks Rule 4: Consider Both Threats and Opportunities Rule 5: Clarify Ownership Issues Rule 6: Prioritize Risks Rule 7: Analyze Risks Rule 8: Plan and Implement Risk Responses Rule 9: Register Project Risks Rule 10: Track Risks and Associated TasksBy Bart Jutte 44. Cutting Time/Cost Overruns (1 of 2) Wherever possible, Fixed price rather than unit price EPCcontracts be used. Suitable changes in Standard Organization Structurerequired to minimize established causes of delays. Contract Management during Construction phase isimportant Both contracts and weekly progress monitoring may bedone transparently thru webserver with Passwords. Increased Competition can bring down Project costs by5-7% Standard capacities and Proven technologies can reduceProject Costs by 5-10%. Arbitration instead of Litigationcan reduce Time delays E-Procurement can cut costs by 5-10% (eg. SAIL CMO) 45. Cutting Time/Cost Overruns ( 2 of 2) Penalties for delayed delivery/commissioning/poor Qualityof workmanship should be incorporated in the Rs 100 crplus B2B Contracts with suppliers. Organizational failures are statistical cause of delays/costoverruns Change in ownership cannot mitigate problems Last 10% should be released after integrated plant/ Projectshows production. Payment thru L/C on measurable Milestones basis/ againstsecurity/BG can reduce Project Costs and reduce timedelays. An Incentive scheme to be given to project team/membersfor timely installation/commissioning can also cut delays. Good administration of Infra facilities improves executionof project. 46. Project CoordinationIt is very important at all levels viz. Engineering,Procurement, Construction, and start-up period some otherimportant aspects of project management are as follows 47. Broad Costing of 3X660 MW- TPP 48. Cost Estimates for 3X660 MW Thermal Power Plant 49. Percentage Break Up of Costs 50. TCE/EIL/PDIL/MECON as ConsultantsCompetent services in diverse roles The services provided by TCE for thermal power projects are wideranging. TCE meets the diverse requirements of different participatingagencies- the Utility, the Independent Power Producer (IPP), theEPC contractor and the lending institutions. TCE's comprehensive range of services for power projects include : Site selection Techno-economic feasibility studies Financial analysis Power system studies Site surveys Site specific studies Environmental impact assessment IPP bid solicitation and selection EPC bid solicitation and selection Pre-tender support to EPC bidders Owners Engineer services to utilities and IPPs O & M contractor bid solicitation and selection Concept-to-commissioning A-E services to utilities and IPPs Post-award detailed engineering services to EPC contractors Technical due diligence 51. TCE as Consultant 52. Thermal Power Station (TPS)A Thermal Power Station is a power plant in which theprime mover is steam driven. Water is heated, turnsinto steam and spins a steam turbine which drives anelectrical generator. After it passes through the turbine,the steam is condensed in a condenser and recycled towhere it was heated; this is known as a Rankine cycle.The greatest variation in the design of thermal powerstations is due to the different fuel sources. Someprefer to use the term energy center because suchfacilities convert forms of heat energy into electricalenergy. Some thermal power plants also deliver heatenergy for industrial purposes, for district heating, orfor desalination of water as well as delivering electricalpower. A large proportion of CO2 is produced by theworlds fossil fired thermal power plants; efforts toreduce these outputs are various and widespread.Source : Wikipedia 53. L&T Power Project DevelopmentL&T develops grid-linked independent Power Plant and Cogeneration andCaptive Power Plants on Build-Own Operate (BOO), Build-Own-Operate-Transfer (BOOT), Build-Lease-Operate (BLO). build-Lease-Operate (BLO).Build -Own-Operate-Maintain (BOOM) basis.Activities: Identification of new opportunities for grid-connected & captive powerplants. Evaluation of risks and strategies for mitigation of these risks. Ensuring various clearances. Evaluation of various financing structures. Arranging the requisite financial package for investment. Establishing partnering relationship with existing power plants to set upjoint ventures with equity participation - with or without reconstruction.Projects Executed: 116 naphtha -fire combined cycle cogeneration power plant, on BOO basis,to generate 116 MW of power and 480 TPH of process steam, for HaldiaPetrochemicals Limited, Haldia. 90 MW naphtha/natural-gas-fired cogeneration power plant, on BLO basis,to deliver 90 MW of power and 240 TPH of process steam, for IndianPetrochemicals Corporation Limited, Gandhar. 54. Power production statisticsSource- CEA Jan 2011 55. Plant Load Factor (CEA) 56. CEA Data (As on 31/01/2011) 57. CEA Website Data80070060050040030020010002002-032003-042004-052005-062006-072007-082008-09353025201510502002-032003-042004-052005-062006-072007-082008-09Compare Indian T&D Losses of 25% with Koreas 4%. 58. Coal Consumption & Cost of Power4003503002502001501005002001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 59. Special CAD/CAM Toolsfor Power SectorGeo-facilities Management Systemfor Electric Industry Based on Intergraphs G/Technology, G/Electric is amultidimensional solution that provides powerful tools tosupport the facilities/asset management needs of electrictransmission and distribution companies. It was created specifically for the electric industry andincorporates input from clients and industry partners,combined with Intergraphs extensive projectimplementation experience. G/Electric fits into the comprehensive informationtechnology (IT) environment we call Geospatial ResourceManagement (GRM). 60. Special CAD/CAM Toolsfor InfrastructureWater Infrastructure Management Water infrastructure management (WIM) is anIntergraph software solution that supports all the detailsof a municipal or private water and wastewaterdistribution system. With it, you can plan, conduct engineering analysis,design work orders, and manage mapping, asset, andmaintenance records. The fundamental feature of WIM isa geospatial network asset database of the distributionassets of the system, such as water mains and sewers,storage reservoirs, pumps, pipelines, valves, andmeters. 61. Save 5-10 % Using E-procurement ! E-procurement (electronic procurement, sometimes alsoknown as supplier exchange) is the business-to-business orbusiness-to-consumer or Business-to-government purchaseand sale of supplies, Work and services through the Internet aswell as other information and networking systems, such asElectronic Data Interchange and Enterprise Resource Planning. E-procurement Web sites allow qualified and registered usersto look for buyers or sellers of goods and services. Dependingon the approach, buyers or sellers may specify costs or invitebids. Transactions can be initiated and completed. Ongoingpurchases may qualify customers for volume discounts orspecial offers. E-procurement software may make it possible toautomate some buying and selling. Companies participatingexpect to be able to control parts inventories more effectively,reduce purchasing agent overhead, and improve Supply ChainManagement. 62. HR-Issues, Challenges, Solutions To visualize skilled/unskilled manpower planning afterbenchmarking with similar/better executed projects To prepare organization chart Identify the key project staff with their job descriptions andexperience requirements To organize Recruitment and selection of talented staff withproven track record. To prepare detailed HR policies/promotion guidelines To comply with Ministry of Labour guidelines To create Performance Appraisal system on Objective criteria To create comprehensive database of current staff To use SAP as tool for organization wide working To plan for Safety/quality monitoring/Disaster Management/EnergyAudit To improve productivity, efficiency of the system as a whole thruIncentives/rewards/punishment of delibrate violation of HR policies To keep manpower costs competitive. 63. Gantt Chart A Gantt chart is a type of bar chart thatillustrates a project schedule. Gantt chartsillustrate the start and finish dates of theterminal elements and summary elements of aproject. Terminal elements and summaryelements comprise the work breakdownstructure of the project. Some Gantt chartsalso show the dependency (i.e., precedencenetwork) relationships between activities 64. PERT and CPMPERT= Project Evaluation Review TechniqueCPM = Critical Path Method A PERT chart is a project management tool used toschedule, organize, and coordinate tasks within aproject. PERT is a methodology developed by the U.S.Navy in the 1950s to manage the Polaris submarinemissile program. A similar methodology, the CPM was developed forproject management in the private sector at about thesame time. 65. Why PERT/CPM? Prediction of deliverables Planning resource requirements Controlling resource allocation Internal program review External program review Performance evaluation Uniform wide acceptance 66. Critical Path Method (CPM) The critical path method (CPM) is an algorithm forscheduling a set of project activities. It is an importanttool for effective project management.PERT chart for a project withfive milestones (10 through 50)and six activities (A through F).The project has two critical paths:activities B and C, or A, D, and F giving a minimum project timeof 7 months with fast tracking.Activity E is sub-critical,and has a float of 2 months. 67. Determine Critical Path All Tasks with zero Total Float are Critical. Any delay in these Tasks will delay Project Completion. Darken these Tasks to finish CPM Diagram. If a task seems too complex or involved to easilydetermine primary properties . . .Break the task up into simpler tasks . . .Or create a CPM sub-project. 68. The CPM Diagram Tasks are Arrows Critical Tasks areThick Arrows Events are Circles Dummy Tasks areDashed Arrows(depict precedence relation fornext activity) 69. Innovation Innovation is creativity plus productivity Business Innovation is Creativity plusCommercialization Innovation is Idea selection, Developmentand commercialization Requires Competencies and knowledge of ateam Different competencies,structure,processes, resources and time scales are required 70. Innovative Organizations(Traits) Drive to stay ahead Acceptance of risks. Growth Orientation Commitment to Technology Vigilance Diverse range of skills Adaptability Enthusiasm for knowledge Receptivity 71. Energy Audit -Innovation(Reliance Energy Limited) Thermal power consist of various sub cycles / systemslike air & flue gas cycle, main steam, feed water &condensate cycle , fuel & ash cycle, Equipment coolingwater (ECW), auxiliary cooling water (ACW) system,Compressed air system, Electrical auxiliary power &lighting system, HVAC system etc.. There istremendous scope of energy saving potential in eachsystem/cycle which is given below. Thermal power plant is designated sector as per ECAct 2001. Most thermal power plant uses 30-40% ofenergy value of primary fuels. The remaining 60-70% is lost during generation, is inthe form of heat. Transmission and distribution also add to major loss. 72. Energy Audit Innovation (1 of 4)1. Air & flue gas cycle:-a. Optimizing excess air ratio: - It reduces FD fan & ID fan loading.b. Replacement of oversize FD and PA fan: - Many thermal power plantshave oversize fan causing huge difference between design & operating pointleads to lower efficiency. Hence fan efficiency can be improved by replacingcorrect size of fan. If replacement is not possible, Use of HT VFD for PA & IDfan can be the solution.c. Attending the air & flue gas leakages: - Leakages in air & flue gas pathincreases fan loading. Use of Thermo vision monitoring can be adopted toidentify leakages in flue gas path. Air preheater performance is one crucialfactor in leakage contribution. If APH leakage exceeds design value then itrequires corrective action.2. Steam, Feed water and condensate cycle:-a. BFP scoop operation in three element mode instead of DP mode: - Inthree element mode throttling losses across FRS valve reduces leads toreduction in BFP power.b. Optimization of level set point in LP & HP heater: - Heater drip levelaffects TTD & DCA of heater which finally affect feed water O/L temp. Henceit requires setting of drip level set point correctly.c. Charging of APRDS from CRH line instead of MS line: -APRDS chargingfrom cold reheat (CRH) is always more beneficial than from MS linecharging.Contd .. 2 of 4 73. Energy Audit Innovation (2 of 4)2. Steam, Feed water and condensate cycle (contd.):-d. Isolation of steam line which is not in use: - It is not advisable to keepsteam line unnecessary charge if steam is not utilized since there energy lossoccurred due to radiation. For example deareator extraction can be chargedfrom turbine Extraction/CRH or from APRDS. In normal running APRDSExtraction is not used so same can be kept isolated.e. Replacement of BFP cartridge: - BFP draws more current If Cartridge iswore out, causing short circuit of feed water Flow inside the pump. It affectspump performance. Hence cartridge replacement is necessary.f. Attending passing recirculation valve of BFP: - BFP Power consumptionIncreases due to passing of R/C valve. It requires corrective action.g. Installation of HT VFD for CEP: - CEP capacity is underutilized and alsothere is pressure loss occurs across Deareator level control valve. There islarge scope of energy saving which can be accomplished by use of HT VFD forCEP or impeller trimming.3. Fuel & ash Cycle:-a. Optimized ball loading in Ball tube mill: - Excessive ball loading increasesmill power. Hence ball loading is to be Optimized depending upon coalfineness report.b. Use of Wash Coal or Blending with A- grade coal: - F-grade coal hashigh ash content. Overall performance can be improved by using Wash coal orblending of F-grade coal with A- grade coal instead of only using F- gradecoal.c. Avoiding idle running of conveyors & crusher in CHPContd .. 3 of 4 74. Energy Audit Innovation (3 of 4)3. Fuel & ash Cycle:- (contd.)d. Use of Dry ash Evacuation instead of WET deashing System: - Drydeashing system consumes less power & also minimizes waste reduction.e. Optimize mill maintenance:-Mill corrective/preventive maintenance is tobe optimized depending parameter like- running hrs, mill fineness, bottomash unburnt particle, degree of reject pipe chocking etc.4. Electrical & lighting system:-a. Optimizing Voltage level of distribution transformer: - It is foundthat Operating voltage level is on higher side than required causing morelosses. It is required to reduce the voltage level by tap changing.b. Use of Auto star/delta/star converter for under loaded motorLighting: - Use of electronic chock instead of conventional use copperChock, Use of CFL, Replacement of mercury vapor lamp by metal Halidelamp. Use of timer for area lighting is the methods can be used. Lightinghas tremendous potential of saving.5. ECW & ACW system:-a. Isolating ECW supply of standby auxiliaries: - Many times standbycoolers are kept charged from ECW side. Also Standby equipmentsauxiliaries like Lube oil system kept running for reliability. We can isolateStandby cooler from ECW system & switching of standby auxiliaries, doingtrade off between return & reliability.b. Application of special coating on CW pump impeller: - It improvespump impeller profile condition, increasing pump performance.Contd .. 4 of 4 75. Energy Audit Innovation (4 of 4)5. ECW & ACW system:-c. Improving condenser performance by condenser tube cleaning &use of highly efficient debris filter: - Tube cleaning by bullet shotmethod increases condenser performance, condenser tube cleaning isnecessary which is to be carried out in overhaul. Also highly advanceddebris filter contribute condenser performance.6. Compressed air system:-a. Optimizing discharge air pressure by tuning loading/ unloadingcycle: - It helpful to reduce sp. Power consumption.b. Use of heat of compression air dryer instead of electrically heatedair dryer: - Heat of compression air dryer use heat generated incompression cycle, thus reduces sp. Power consumption.c. Use of screw compressor instead reciprocating compressor: - Sp.Power consumption of screw compressor is less than reciprocating aircompressor leads to reduce aux. power consumption.7. HVAC systema. Cooling tower performance improvementb. Installing absorption refrigeration system instead of vaporcompression systemc. Use of wind turbo ventilators instead of conventional motor drivenexhauster 76. CONTROL & DIAGNOSTIC FEATURESOF 500 MW TURBO GENERATORS (BHEL)With the increase in the power rating of generating sets,the issue of availability has become very important. Theoutage of even one large capacity machine from the gridcauses a significant shortfall in power generation. Highavailability and reliability are therefore fundamentalrequirements of power generating units. To achieve this,the health of machines needs to be monitoredcontinuously. Over and above this, we also requiretechniques for forecasting imminent problems.Diagnostic tools are therefore gaining increasingimportance by the day. This paper gives details of thecontrol and diagnostic tools used in 500 MW generatorsmanufactured by BHEL.(Refer BHEL Journal) 77. Government Clearances Required (1/4) Advance action / clearance for feasibility report Investment approval Funds Domestic funds / loans / bonds / debentures / equity Raising money in the foreign market Foreign direct investment Foreign collaboration Engaging foreign consultants Global tenders Foreign assistance 78. Government Clearances Required (2/4) Location Pollution Control Environment Forest Telecommunication Port angle Mining lease Mines safety Commissioning boiler Steam and condensatepiping Fire protection system Labour laws Inspection certificationof electrical system Statutory clearance forpower projects Techno-economic clearancefor power projects/captivepower plants Chimney/tall buildings nearairport Defense angle / proximity todefense installations Railway siding construction /operation Safety against explosion Fire protection system Equipment lay-out underFactory Act / approval beforecommissioning 79. Government Clearances Required (3/4) Tenders specifications Tender Approval Shipment arrangements Letter of Intent Industrial license Coal linkage Oil / Gas linkage Power linkage Water Appointing foreign technicians / engineers 80. Government Clearances Required (4/4) Building plans/no objection Land acquisition Right of way clearance Formation of company Appointment of Managing Director/ Director(s) Sales tax/VAT/GST (when applicable) registration Discounts in insurance rates Registration under Excise Act Approval under Service /Sales Act. Registration under Shop & Establishment Act Movement of over-dimensional equipment on roads Movement of over-dimensional equipment on barges etc. Income tax registration / income tax clearance regardingforeign technicians 81. INDIAN STANDARDS ONEARTHQUAKE ENGINEERING Bureau of Indian standards, the National Standard Body ofIndia, is a Statutory Organization under the Bureau ofIndian Standards Act 1986. One of the activity isformulation of Indian Standards on different subjects ofEngineering through various Division Councils. The Civil Engineering Division Council is responsible forstandardization in the field of Civil Engineering includingStructural Engineering, Building materials andcomponents, Planning Design, Construction andMaintenance of Civil Engineering Structures, ConstructionPractices, Safety in Building etc. These standards are evolved based on consensus principlethrough a net work of technical committee comprisingrepresentatives from Research and DevelopmentOrganizations, Consumers, Industry, Testing Labs andGovt. Organizations etc. 82. Environmental Impact Assessment An environmental impact assessment is anassessment of the possible positive or negative impactthat a proposed project may have on theenvironment, together consisting of the natural, socialand economic aspects. The purpose of the assessment is to ensure thatdecision makers consider the ensuing environmentalimpacts while deciding whether to proceed with aproject. The International Association for ImpactAssessment (IAIA) defines an environmental impactassessment as "the process of identifying, predicting,evaluating and mitigating the biophysical, social, andother relevant effects of development proposals priorto major decisions being taken and commitmentsmade." 83. NTPC Ratio Analysis (Last 5 Years) 1 of 2Mar 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06PER SHARE RATIOSAdjusted E P S (Rs.) 9.82 8.72 8.93 8.02 6.01Adjusted Cash EPS (Rs.) 13.04 11.59 11.53 10.55 8.5Reported EPS (Rs.) 10.59 9.95 8.99 8.33 7.06Reported Cash EPS (Rs.) 13.8 12.82 11.59 10.85 9.54Dividend Per Share 3.8 3.6 3.5 3.2 2.8Operating Profit Per Share (Rs.) 15.09 12.79 13.98 12.32 9Book Value (Excl Rev Res) Per Share (Rs.) 77.28 71.55 65.81 58.94 54.53Book Value (Incl Rev Res) Per Share (Rs.) 77.28 71.55 65.81 58.94 54.53Net Operating Income Per Share (Rs.) 56.25 50.91 44.98 39.58 31.71Free Reserves Per Share (Rs.) 62.75 56.25 52.34 47.38 43.24PROFITABILITY RATIOSOperating Margin (%) 26.81 25.11 31.07 31.13 28.4Gross Profit Margin (%) 21.1 19.48 25.31 24.77 20.56Net Profit Margin (%) 17.72 18.11 18.51 19.39 20.2Adjusted Cash Margin (%) 21.83 21.1 23.74 24.58 24.31Adjusted Return On Net Worth (%) 12.7 12.18 13.57 13.61 11.02Reported Return On Net Worth (%) 13.69 13.9 13.66 14.12 12.94Return On long Term Funds (%) 12.45 12.27 15.15 14.69 12.26 84. NTPC Ratio Analysis (Last 5 Years) 2 of 2 85. Tata Power Ratio Analysis (Last 5 Years) 1/2Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06PER SHARE RATIOSAdjusted E P S (Rs.) 37.62 21.71 21.36 24.19 22.22Adjusted Cash EPS (Rs.) 57.76 36.78 34.75 39.44 36.78Reported EPS (Rs.) 39.93 41.65 39.42 35.21 30.85Reported Cash EPS (Rs.) 60.07 56.72 52.81 50.46 45.41Dividend Per Share 12 11.5 10.5 9.5 8.5Operating Profit Per Share (Rs.) 78.37 50.79 41.67 35.46 42.48Book Value (Excl Rev Res) Per Share (Rs.) 443.83 390.36 362.04 302.42 277.84Book Value (Incl Rev Res) Per Share (Rs.) 443.83 390.36 362.04 302.42 277.84Net Operating Income Per Share (Rs.) 299.37 327.74 267.77 248.54 230.08Free Reserves Per Share (Rs.) 372.15 308.95 278.2 215.63 192.52PROFITABILITY RATIOSOperating Margin (%) 26.17 15.49 15.56 14.26 18.46Gross Profit Margin (%) 19.44 10.96 10.64 8.33 12.34Net Profit Margin (%) 12.88 12.32 14.35 13.26 12.92Adjusted Cash Margin (%) 18.63 10.88 12.65 14.85 15.4Adjusted Return On Net Worth (%) 8.47 5.56 5.9 7.99 7.99Reported Return On Net Worth (%) 8.99 10.66 10.88 11.64 11.1Return On long Term Funds (%) 9.94 7.67 7.18 7.62 8.72 86. Tata Power Ratio Analysis (Last 5 Years) 2/2LEVERAGE RATIOSLong Term Debt / Equity 0.55 0.52 0.34 0.6 0.49Total Debt/Equity 0.56 0.6 0.38 0.61 0.5Owners fund as % of total Source 63.84 62.22 72.15 61.97 66.34Fixed Assets Turnover Ratio 0.7 0.8 0.91 0.78 0.76LIQUIDITY RATIOSCurrent Ratio 2.45 2.1 2.04 2.25 2.22Current Ratio (Inc. ST Loans) 2.39 1.64 1.78 2.22 2.18Quick Ratio 2.17 1.77 1.75 2 1.85Inventory Turnover Ratio 18.98 15.49 18.7 6,072.41 498.76PAYOUT RATIOSDividend payout Ratio (Net Profit) 34.08 31.2 30.84 31.6 31.41Dividend payout Ratio (Cash Profit) 22.65 22.9 23.02 22.05 21.34Earning Retention Ratio 63.82 40.16 43.09 54.01 56.37Cash Earnings Retention Ratio 76.44 64.68 65.02 71.79 73.65COVERAGE RATIOSAdjusted Cash Flow Time Total Debt 4.35 6.44 4.02 4.71 3.84Financial Charges Coverage Ratio 5.02 4.15 6.23 5.55 6.63Fin. Charges Cov.Ratio (Post Tax) 4.39 4.86 7.78 6.34 6.89COMPONENT RATIOSMaterial Cost Component(% earnings) 61.28 73.86 72.76 70.1 70.43Selling Cost Component 0.74 0.67 0.59 5.19 1.19Exports as percent of Total Sales 0.78 4.47 0.31 2.12 1.82Import Comp. in Raw Mat. Consumed 0 0 0 0 0Long term assets / Total Assets 0.68 0.7 0.69 0.64 0.68Bonus Component In Equity Capital (%) 0.47 0.51 0.51 0.57 0.57 87. Reliance Power Ratio Analysis (Last 5 Years) 1/2Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06PER SHARE RATIOSAdjusted E P S (Rs.) 0.45 0.79 0.33 0.01 -25.57Adjusted Cash EPS (Rs.) 0.45 0.79 0.33 0.01 -25.57Reported EPS (Rs.) 1.14 1.04 0.41 0.01 -25.57Reported Cash EPS (Rs.) 1.14 1.04 0.41 0.01 -25.57Dividend Per Share 0 0 0 0 0Operating Profit Per Share (Rs.) -0.4 -0.3 -0.11 0.06 -22.27Book Value (Excl Rev Res) Per Share (Rs.) 58.69 57.55 59.92 10 -19.22Book Value (Incl Rev Res) Per Share (Rs.) 58.69 57.55 59.92 10 -19.22Net Operating Income Per Share (Rs.) 0 0 0 0.11 0Free Reserves Per Share (Rs.) 48.69 47.55 49.92 0 -29.22PROFITABILITY RATIOSOperating Margin (%) 0 0 77.44 60.98 0Gross Profit Margin (%) 0 0 77.44 60.98 0Net Profit Margin (%) 122.09 90.9 83.9 7.19 0Adjusted Cash Margin (%) 48.92 69.75 66.89 7.68 0 88. Reliance Power Ratio Analysis (Last 5 Years) 2/2Adjusted Return On Net Worth (%) 0.77 1.38 0.55 0.08 0Reported Return On Net Worth (%) 1.94 1.8 0.69 0.08 0Return On long Term Funds (%) 0.89 1.45 0.64 0.68 0LEVERAGE RATIOSLong Term Debt / Equity 0 0 0 0 0Total Debt/Equity 0 0 0 0 0Owners fund as % of total Source 100 100 100 100 0Fixed Assets Turnover Ratio 0 0 0 0.03 0LIQUIDITY RATIOSCurrent Ratio 189.31 167.36 12.6 9.16 1.72Current Ratio (Inc. ST Loans) 189.31 167.36 12.6 9.16 1.72Quick Ratio 189.31 167.36 12.6 9.16 1.72PAYOUT RATIOSEarning Retention Ratio 100 100 100 100 0Cash Earnings Retention Ratio 100 100 100 100 0COVERAGE RATIOSFinancial Charges Coverage Ratio 74.91 113.42 15.27 1.67 0Fin. Charges Cov.Ratio (Post Tax) 162.62 142.03 17.54 1.2 0COMPONENT RATIOSSelling Cost Component 0 0 1.31 0.57 0Long term assets / Total Assets 0.52 0.46 0.61 0.78 0.99Bonus Component In Equity Capital (%) 5.7 5.7 0 0 0 89. Reliance Infra. Ratio Analysis (Last 5 Years) 1/2Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06PER SHARE RATIOSAdjusted E P S (Rs.) 40 31.11 24.69 25.37 31.04Adjusted Cash EPS (Rs.) 53.06 41.95 34.12 35.88 50.72Reported EPS (Rs.) 47.03 50.39 45.86 35.07 30.63Reported Cash EPS (Rs.) 60.09 61.22 55.28 45.57 50.31Dividend Per Share 7.1 7 6.3 5.3 5Operating Profit Per Share (Rs.) 35.74 19.22 22.73 21.75 35.99Book Value (Excl Rev Res) Per Share (Rs.) 574.81 466.07 433.76 378.13 331.24Book Value (Incl Rev Res) Per Share (Rs.) 596.69 492.16 460.98 408.67 366.66Net Operating Income Per Share (Rs.) 400.52 426.51 267.68 251.72 186.7Free Reserves Per Share (Rs.) 478.82 396.63 369.71 339.74 292.31PROFITABILITY RATIOSOperating Margin (%) 8.92 4.5 8.49 8.64 19.27Gross Profit Margin (%) 5.66 1.96 4.96 4.46 8.73Net Profit Margin (%) 10.69 10.73 15.34 12.43 14.39Adjusted Cash Margin (%) 12.06 8.93 11.41 12.71 23.83Adjusted Return On Net Worth (%) 6.95 6.67 5.69 6.71 9.37Reported Return On Net Worth (%) 8.18 10.81 10.57 9.27 9.24Return On long Term Funds (%) 9.74 9.66 9.67 9.45 9.04 90. Reliance Infra. Ratio Analysis (Last 5 Years) 2/2LEVERAGE RATIOSLong Term Debt / Equity 0.1 0.14 0.06 0.16 0.41Total Debt/Equity 0.29 0.69 0.48 0.67 0.6Owners fund as % of total Source 77.37 58.96 67.19 59.59 62.23Fixed Assets Turnover Ratio 1.33 1.4 0.99 0.97 0.72LIQUIDITY RATIOSCurrent Ratio 1.73 1.55 2.47 3.93 4.25Current Ratio (Inc. ST Loans) 1.26 0.74 1.06 1.51 2.09Quick Ratio 1.66 1.45 2.37 3.82 4.07Inventory Turnover Ratio 59.45 55.96 40.26 32.87 19.6PAYOUT RATIOSDividend payout Ratio (Net Profit) 15.94 16.19 15.93 17.68 18.37Dividend payout Ratio (Cash Profit) 12.47 13.33 13.21 13.6 11.18Earning Retention Ratio 81.25 73.77 70.41 75.57 81.88Cash Earnings Retention Ratio 85.87 80.55 78.59 82.72 88.91COVERAGE RATIOSAdjusted Cash Flow Time Total Debt 3.17 7.73 6.21 7.14 3.96Financial Charges Coverage Ratio 6.28 4.25 4.13 4.76 6.88Fin. Charges Cov.Ratio (Post Tax) 6.04 5.19 5.23 5.16 6.57COMPONENT RATIOSMaterial Cost Component(% earnings) 34.17 44.32 39.5 26.96 27.67Selling Cost Component 1.82 1.79 2.36 2.32 0.21Exports as percent of Total Sales 0.43 0.96 0.01 0 0Long term assets / Total Assets 0.52 0.63 0.53 0.27 0.23Bonus Component In Equity Capital (%) 3.3 3.57 3.43 3.53 3.8 91. References Planning Commission, Govt. ofIndia Ministry of Statistics andProgramme Implementation Ministry of Power ,Govt. of India NCAER , Govt. of India Central Electricity Authority, Govt.of India Delhi School of Economics, DelhiUniversity National Thermal PowerCorporation (PSU) Mckensie Report Tata Consulting Engineers/TataPower EIL/PDIL/Mecon/MN Dastur Reliance Industries Ltd India Habitat Center Tata Chemicals Ltd Delhi Metro Rail CorporationTotal Project Management P K Joy,McMillan publishersProject Management by Rory Burke,WileyProject Management by Jack RMeredith/Samuel J Mantel ,WileyEnergy Audit: Reliance Energy LtdBHEL InnovationsMinistry of Environment & Forest,Government of IndiaInnovation Management Dr R Lalitha,Himalaya PublishingLarsen and Toubro (L&T)Ministry of Labour ,Govt. of IndiaDion Global Solutions Limited,Insight (Research Data Base)TERI, New DelhiWikipediaHindustan Times / Indian ExpressVijayant Consultants, Ahemadabad 92. Acknowledgement The Author / Presenter thankfully acknowledges thecontribution of the following IAMR Staff members inthe creation of this Power Point Presentation onInnovative Project Management Practices forworking professionals.1. Mr. Rajendra Yadav2. Mr. Avadesh Mishra3. Mr. Mayur Sharma Mr. Rakesh Bhatia, with his rich experience of 25years in execution & marketing of EPC Projects, hasbeen a great help in validating and correlating theinputs & streamlining the flow. 93. Thank you all the participants for patientlistening, your valuable contribution by makingthe session interactive and value added .It was a great experience sharing platform tocut time & cost overruns in major projects in thepower, infrastructure, construction sectors.