PROJECT MANAGEMENT

MINI PROJECT

Submitted by,
Nitheesh B
RA1652001010134
MBA (I sec, 2nd year)
SRM University
 CONTENTS

INTRODUCTION

ADVANTAGES OF METRO SYSTEM

ECONOMIC ANALYSIS

IMPLEMENTATION PLAN

PROJECT TEAM AND CONFLICT

PROJECT LIFE CYCLE

ORGANISATION SET UP OF KMRL

ESTIMATION OF COST

WORK BREAKDOWN STRUCTURE

PRIMAVERA PROJECT PLANNER

GANTT CHART

RISK MANAGEMENT BY KMRL

CONCLUSION

REFERENCES
INTRODUCTION
Public Transport System is an efficient user of space and with reduced level of air
and noise pollution. As the population of a city grows, share of public transport, whether road
or rail-based, should increase. Experience has shown that, in cities like Kochi where roads do
not have adequate width and which cater to mixed traffic conditions comprising slow and fast
moving vehicles, road transport can optimally carry 8,000 persons per hour per direction
(phpdt). When traffic density increases beyond this level average speed of vehicles comes
down, journey time increases, air population goes up and commuters are put to increased level,
of inconvenience. In any case, it is not feasible to operate bus transport beyond 10,000 phpdt
in mixed transport scenario, obtaining on Kochi city roads. With growing population and mega
development plans coming up for this port city, the travel demand is expected to grow steeply.
With inadequate public transport services, passengers will shift to private modes, which is
already evident from the high ownership trends in the region. This will not only aggravate the
congestion on the city roads but will also increase the pollution level. Peak hour traffic demand
on Alwaye-Petta Corridor has been assessed as 13,681 phpdt for the year 2015 and this is likely
to increase 21065 phpdt by the year 2025. Road-based public transport, therefore, cannot meet
this demand. There is an urgent need to introduce a light Metro system in the city to provide
fast, safe, economic, and environment-friendly mode for mass movement of passengers.
Carrying capacity of Light Metro System is up to 25,000 phpdt, which will be adequate to take
care of the traffic problems for Greater Cochin area for the next about 25 years.

ADVANTAGES OF METRO SYSTEM

Requires 1/5th energy per passenger km compared to road-based system.

Causes no air pollution in the city.
Causes lesser noise level.
Occupies no road space if underground and only about 2 metres width of the road if
elevated.
Carries same amount of traffic as 5 lanes of bus traffic or 12 lanes of private motor cars
(either way), if it is a light capacity system.
Is more reliable, comfortable and safer than road based system
Reduces journey time by anything between 50% and 75% depending on road
conditions.
ECONOMIC ANALYSIS

The economic appraisal of Metro Corridor from Alwaye to Petta in Kochi has been
carried out within the broad framework of Social Cost Benefit Analysis Technique. It is based
on the incremental costs and benefits and involves comparison of project costs and benefits in
economic terms under the with and without project scenario. In the analysis, the cost and
benefit streams arising under the above project scenarios have been estimated in terms of
market prices and economic values have been computed by converting the former using
appropriate shadow prices. This has been done to iron out distortions due to externalities and
anomalies arising in real world pricing systems. The annual streams of project costs and benefit
have been compared to estimate the net cost/ benefit and to calculate the economic viability of
the project in terms of EIRR. The Economic Internal Rate of Return (EIRR) for the project has
then been arrived using Discounted Cash Flow technique to the net benefit stream at economic
prices. The cost and benefit streams arising under the above situations have been estimated in
terms of market prices and economic values have been computed by converting the former
using appropriate shadow prices.

The Economic Internal Rate of Return (EIRR) in economic terms works out to
14.2% for Alwaye-Petta Corridor of Kochi Metro. This falls to 13% and 12.9% respectively in
case of increase in cost by 10% or decrease in traffic by 10%. With increase in cost by 10%
together with reduction in traffic by 10%, the EIRR falls to 11.8%.

IMPLEMENTATION PLAN

Kochi Metro Project will be the biggest urban Project undertaken in Kerala state.
The Project has to be implemented through densely populated area along highly congested
routes. In spite of all efforts taken to mitigate inconveniences and hardships to the public,
certain sensitive land acquisitions and certain disruptions in the city are unavoidable. If the
Project has to go through fast, a visible positive support to the Project from the Government,
City Corporation and GCDA should be available. Each days delay in completing this Project
will hike up the cost of the Project by 15 lakhs. If the Project implementation is delayed, the
city will become more and more crowded and it will be practically impossible to carry out
construction activities later on. Therefore, a carefully drawn up strategy is necessary for
implementing this Project. As a first step, Kerala State Government should inform the Central
Government of its plan to go in for Kochi Metro Project through a Concessionaire route and
the support which it would need from the latter. Institutional Arrangement Experience of
implementing Delhi Metro project has shown that a Special Purpose Vehicle (SPV), vested
with adequate powers, is an effective organisational arrangement to implement and
subsequently operate and maintain a metro project. An SPV should, therefore, be set up for
Kochi Metro and registered under the Companies Act, 1956. This SPV should be a PSU of the
State Government and may be named as Kochi Metro Ltd. (KML) as already decided by
Government of Kerala. The Managing Director of KML is already in place and now the need
is to get all the approval of Central Government expeditiously. The Board of Directors (BOD)
are to be vested with full powers to implement the project with adequate delegation of power
to the Managing Director for day to day working. It is also recommended that a High Power
Committee under the chairmanship of Chief Secretary, Kerala should be set up. Other members
of this Committee should be Secretaries of the concerned Departments of the State Government
and Heads of civic bodies who will be connected in one way or the other with the
implementation of the project.

Implementation through SPV

Once the SPV is formed, it has to start action for implementation of the project.
There are two options in this regard; either the SPV implements/operates the project itself with
funds provided by the Government or it entrusts the operation of the project to a Concessionaire
after construction.

S.No Item of Work Completion Date

1 Obtain Central Government Clearance 30.11.2011
2 Finalisation of Major Contracts 29,02.2012
3 Execution of works and procurement of equipments, 01.04.2012 31.12.2015
coaches and installations
4 Testing and Commissioning 01.01.2016 31.03.2016
5 Revenue Operation 31.03.2016

Table 1: Implementation Schedule through SPV

PROJECT TEAM AND CONFLICT

A dedicated project team is being heavily utilized by the engineering firms. In order
to become fully functional, the project teams need to develop a sense of unity, identity and
purpose quite quickly. The success of the project team depends upon its empowering to
undertake its task.

For the Kochi Metro, the KMRL was setup as a dedicated project team. For his
whole- hearted service to the Indian Railways and efficient project management skills, E.
Sreedharan was appointed as the Project Manager. E. Sreedharan was known for delivering
and finishing projects within budgets and on time. The members of the DMRC were recruited
on strict instructions from E. Sreedharan on the basis of their efficiency, competency,
punctuality and integrity. The team-building was done on the basis of we mean strict business
attitude and ensuring there would be an absolute zero tolerance and adherence to complacency,
corruption and nepotism in order to negate chances of conflict to manifest during execution of
project.

PROJECT LIFE CYCLE

Since the KMRL was a construction based project, the project life cycle is
represented in the following;

Feasibility: Project formulation, feasibility studies, and strategic design and approval. A
go or no-go decision is made at the end of this phase.
Planning and Design: base design, cost and schedule, contract terms and conditions, and
detailed planning. Major contracts are let at the end of this phase.
Construction: manufacturing, delivery, civil works, installation and testing. This facility
is substantially complete at the end of this phase.
Turnover and Start up: final testing and maintenance. This facility is in full operation at
the end of this phase.

ORGANISATION SET UP OF KMRL

The KML Organisation, as stated above, should be very lean but effective. It will
consist of a Managing Director with full Executive Powers and three Functional Directors
including Director (Finance). All the three Functional Directors will be full members of the
Management Board. The Directors will be assisted by Heads of Departments in each of the
major disciplines and they in turn will have supporting staff. The organisation should be
basically officer-oriented with only Personal Assistants and Technical Assistants attached to
senior officers by eliminating unproductive layers of staff such as Peons, Clerks, etc. We
strongly recommend that the total organisational strength is limited to 45 to 50 eliminating too
many tiers to enable faster decision-making.

It is necessary for the KML officers to get exposed to the Metro technology and
Metro culture through study tours of some of the selected foreign Metros and Delhi/Calcutta/
Chennai Metros.

Implementing a metro project in a congested metropolis is indeed a challenge. In

sheer size, magnitude and technical complexity there are few parallels to metro projects.
Further, these projects are to be carried out in difficult urban environment without dislocating
city life, while at the same time preserving the environment. The project involves integration
of a number of complex technical systems some of the technologies used in these systems
are new to the country each one of which is a major project by itself. Whereas actual
construction work in the field will be the responsibility of the Concessionaire, its supervision
for quality control and monitoring the construction schedule to achieve the laid down targets
will have to be done by KML. Interfacing various system contracts is a difficult and highly
skilled exercise.

Fig: Organisational Structure of KMRL

 Clearances from the local authorities have to be taken to cut trees. Arrangements
for diversion of utilities, management of road traffic, etc., all of which will call for an efficient
and competent project implementing agency will also be the responsibility of KML.

Metro projects cannot be executed the way Government agencies execute projects
in this country. Timely completion is very important to safeguard their financial viability.
Being a rail-based project, for most of the systems such as rolling stock, signalling,
telecommunication, traction power supply, etc., persons with railway background would be
necessary.

Since KML will not have the required expertise and experienced manpower to
check and monitor the Concessionaires work it may be necessary to engage General
Consultants, from the very start who will do this job on behalf of KML or it should be got
implemented on deposit terms from any agency having the experience of construction of Metro
and also O & M.

ESTIMATION OF COSTS

The project cost comprises capital cost, operation and maintenance cost. Cost
components considered for the purpose of this exercise include:

Capital cost of infrastructure (civil engineering, land, track, power supply, traction system,
signalling and telecommunications, etc.) and rolling stock.
Operating cost of METRO

The given below table summarizes the estimated cost (Rs. in Crores) to economy
for Alwaye-Petta Corridor of Cochin METRO. The construction cost is estimated at Rs.
3733Cr.

SYSTEM COST Rs (In Crores)

METRO Construction Cost 3733

Operating Cost 108.68

Table 3: The Estimated Cost to Economy for Alwaye Petta Corridor of Kochi Metro in
2011
WORK BREAKDOWN STRUCTURE

Kochi metro rail project is the one of the lading project undertaken by Delhi Metro.
It involves construction of station work at various locations across Cochin. Considered one
station work for case study.

Main steps involves in station construction project are

1. Road winding, barricading and temporary street lighting.

2. Piling
3. Pile caps
4. Construction of main column (stage1)
5. Longitudinal and precast beam
6. Construction of main column (stage2)
7. Construction of Transvers Beam
8. RCC work for Track Slab
9. Construction of Outer Column up to Platform Beam
10. Erection of Roof
11. Finishing.

WBS is a hierarchy of work that must be accomplished to complete the project.

Each project has its own hierarchy with top level WBS element begin equal to that EPS nodes
or project. Each WBS element may contain more detailed WBS levels, activities, or both. The
detailed WBS of the above mentioned activities for the work stretch from Edapally-Kaloor
Station is listed below.

S. No Activity Name Original Duration Start Finish

1 Road Widening 35 04.04.16 08.05.16
2 Piling 20 07.05.16 26.05.16
3 Pile Caps 45 27.05.16 10.07.16
4 Construction of Main column 50 27.05.16 10.07.16
5 Backfilling in layers 40 27.05.16 05.07.16
6 Construction of Transverse Beams 52 06.07.16 26.08.16
7 Longitudinal & Precast Beams 34 27.08.16 29.09.16
8 RCC works for concourse slabs 40 30.09.16 08.11.16
 9 Construction of main column 55 09.11.16 02.01.17
10 Construction of Transverse beams 20 03.01.17 22.01.17
11 Longitudinal &b Precast beams 43 23.01.17 06.03.17
12 RCC works for Track slabs 30 07.03.17 05.04.17
13 Construction of outer column 18 06.04.17 23.04.17
14 Erection of precast platform 10 24.04.17 04.05.17
15 Erection of platform slab 40 04.05.17 12.06.17
16 Erection of roof 30 13.06.17 12.07.17

Table 2: WBS of Activities between Edapally-Kaloor stretches (04.04.16 - 12.07.17)

PRIMAVERA PROJECT PLANNER

Primavera Project Planner is specialized in managing all types of projects, small,

medium and large; throughout the world.it has sufficient functions to help the user plan for the
time, resources and cost and then later monitor them. It is used handle very large and complex
projects, especially in the engineering and construction business. This software was widely and
exclusively used in the project for scheduling and resource allocation to various activities. The
activity scheduling done for the above stretch is shown below.

Fig: Scheduling using Primavera

GANTT CHART: WELL KNOWN METHOD OF PROJECT PLANNING

The technique was developed by Henry Gantt and Fredric Tailor and can be
identified as the scientific method of project planning. The method uses horizontal rods
representing time length of a task accomplishment for planning and tasks' names are written
vertically in separate columns. Every rod is place in front of every task and the chart shows the
starting date, accomplishment time length and finishing date of tasks

Advantage of Gantt chart

Gantt charts have gained wide acceptance and popularity mainly because of their
simplicity of and ease of preparation and understanding. No theory or complicated calculations
are involved. Anyone can understand them. Gantt charts particularly appeal to persons who do
not have a technical background. For example, some clients and upper-level managers may
better understand the plan for carrying out a construction project by looking at a bar chart than
by looking at a schematic of logic network. The advent of the critical path method (CPM) and
the evolution of powerful computers, Gantt chart did not perish or lose importance. Instead,
they evolved to a different supporting role that made them more valuable and popular.

Fig: Gantt chart of schedule in EdapallyKaloor stretch

RISK MANAGEMENT OF KMRL

No project goes underway without risk assessment as they are inevitable

procedures in the process of project management. Risk assessment involves identifying the
risk, responding and taking mitigation steps to negate or reduce the likelihood of the risks to
occur again. The KMRL processed the following Risk Management Plan and Risk Register for
assessing and overcoming the imminent risks with indicative colours Red as High Level Risk,
Yellow as Medium Level Risk and Green as Low Level Risk.

Table 4: Risk Management Plan and Risk Register for Kochi Metro Rail Ltd.
CONCLUSION

Kochi is the commercial capital of Kerala as well as a centre for higher education.
Cochin Port has emerged as one of the most important ports in the country. Rapid urbanization
in the recent past has put the citys travel infrastructure to stress. With Vellarpadam Container
Terminal, Goshree Island Development project and industrial activities centred on Cochin
Shipyard, Cochin Refinery, Cochin Fertilizer Plant, etc., traffic in the city is expected to shoot
up. Being thickly populated area and with narrow roads, Kochis traffic needs cannot be met
by any road-based system.

On account of the intense developments, waterways, low-lying areas and heavy

type of constructions, provision of a rail based mass transit system cannot be delayed any
further. Studies have brought out that a Light Metro with carrying capacity of about 25,000
phpdt will be adequate to meet not only the traffic needs for the present but for the rest 30 to
35 years also. A Light Metro System from Alwaye to Petta (25.612 km), at an estimated
completion cost of Rs. 5146 crores (Including Central Taxes but excluding state taxes) to be
made operational by the year 2016 has accordingly been recommended.

In Kochi Metro there is not much scope of property development along the corridor
as land is not available for the same. However, there is scope to permit additional FSI for all
properties falling in the belt of 500 meters on either side of the metro alignment. This additional
FSI will have to be purchased by the land owner/developers at a predetermined premium per
FSI sq. m which can be reviewed periodically.
REFERENCES

Sharma, Dr. L. (2015), Project Management (A Case Study of Delhi Metro Project).
International Journal of Current Research. 7 (1), 11780-11784.

Prasad, N. V. and Govind, S. (2006) The Delhi Metro Project: Effective Project
Management in the Indian Public Sector. Hyderabad: The ICFAI Center for Management
Research.

Delhi Metro Rail Corporation (2011) Detailed Project Report - Kochi Metro Project.

Project Management Institute (2000) A Guide to the Project Management Body of

Knowledge (PMBOK Guide). Newton Square, Pennsylvania USA: Project Management
Institute, Inc.