CONSTRUCTION MANAGEMENT AND ADMINISTRATION

1. CONSTRUCTION MANAGEMENT AND ADMINISTRATION UNIT-II

2. Unit II: list of topics • Large scale production • Economies of large scale production • Stages of Construction planning and scheduling • Work Breakdown Structure • Bar charts, limitations of bar charts • Network techniques in construction management • CPM and PERT • Network Problems

3. 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 was the price of a simple mobile phone 10years back? What could be the reason for reduction in price of these products?

4. 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

5. Economies of large scale production A. Internal Economies B. External Economies Economies of concentration Economies of information Economies of welfare Economies of specialization • Technical economies • Managerial economies • Marketing economies • Financial economies • Risk bearing economies • Economies of research • Economies of welfare

6. Economies of large scale production A. Internal Economies • Technical Economies – • Improve production by Employing good equipments and techniques • Reduce the per unit cost of production • 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.

7. A. Internal Economies • 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 • 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. • 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.

8. A. Internal Economies • 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 • 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

9. B. External Economies •  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. • Economies of Information – The fruits of research in the form of novel innovations are passed on to the concerns through a scientific journal • 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 • Economies of Specialisation – When an industry enlarges in size, concerns begin specialising various processes and industry benefits as a whole.

10. Advantages of Large scale production • 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 • 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. • 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. • 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.

11. Advantages of Large scale production • Economy in rent:  If a factory made to produce large Quantity of goods, the same amount of rent is divided over a large output • 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 • 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 • 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 • Meeting adversity: A big business can show better resistance in times of adversity. It has much better recourses. Losses can easily bear. • 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.

12. What are the Functions of Construction Management? The function of construction management are • Planning and scheduling • Organizing • Staffing • Directing • Controlling • Co-ordinating

13. Stages of Construction planning Planning for CONSTRUCTION may be done in the following two stages • Pre-tender planning • Post-tender or Contract planning

14. Pre-tender planning Pre-tender planning includes the following steps • Examining drawings and specifications • Site investigation and market survey • Identify alternate methods select best method • Estimation of quantities and duration • Preparation of tentative construction schedule • Deciding the overheads, margin and finalizing the tender price

15. Post-tender planning or Contract planning Contract planning involves the following steps • Establishing a good communication system • Evaluating alternative construction methods identified during pre-tender stage • Studying inter-relationships of various items of work and finalisation of proper sequence of operation • Calculating the phased requirement of construction materials • Determining the phased requirement of plant and machinery • Preparing details of man power requirement

16. Scheduling • Construction schedule • Labor schedule • Material schedule • Equipment schedule • Finance schedule

17. Construction schedule

18. Labor schedule

19. Material schedule

20. Equipment schedule

21. Finance schedule

22. 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

23. WBS for compound wall construction

24. Work Breakdown Guidelines for work breakdown • If the duration of an activity< project duration/1000 then level of detail is too great • If the duration of an activity> project duration/10 then level of detail is too shallow • The 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

25. Typical WBS for a building work

26. 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)

27. Example of preparing bar chart for equipment foundation

28. Bar chart 1 in MS Project

29. Limitations of bar charts • Interdependencies of activities • Bar chart does not show clearly the interdependencies among the various activities • 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 • 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 • Critical activities • Bar chart does not indicate critical activities requiring careful attention

30. Bar chart 2 in MS Project

31. Pickup the incorrect statement • Various functions under each activity are shown by one bar on Bar charts • Bar chart establishes the interdependency of one event on another • Only approximate percentage of the completed work is reported • None of the above Bar charts are suitable for • Minor works • Major works • Large projects • All the above Henry Gantt developed Bar charts for planning and scheduling the projects in • 1880 • 1900 • 1920 • 1940