Infra Projects : How to control TIME – COST over-runs
Context :
640 infra projects running behind schedule, some up to 26 years / Business Line / 06 June 2022
Extract :
Delays in land acquisition, eco clearance, tying up of funds key reasons; cost overrun up 23%
A new railway line of 142 kms between Hejjala and Chamarajanagar in Karnataka has been waiting for around 312 months or 26 years to be laid. This is one of 647 projects facing time overrun as on May 1, according to a report prepared by the Infrastructure and Project Management Division (IPMD) under the Statistics Ministry.
The IPMD is tasked with monitoring Central Sector projects costing more than Rs 150 cr in 16 sectors. It is done through the mechanism of Online Computerized Monitoring System
The physical performance is measured in terms of ,
# Milestones , and
# Percentage Physical progress ,
Against
# The Target Dates , and
# Quantities,
Whereas the Financial Performance is measured on a Yearly Basis with respect to the link expenditure on each project
The report has prepared a list of 46 projects for focussed attention. These have,
# Cost Over-runs of 50 % or more , and
# Time overruns of 50 Months and more
These amount for nearly 40 % of the total cost overruns and 20 % of the total Time Overruns
==============================
MY TAKE :
These Infra Projects are turning out to be like a Black Hole, devouring TIME and MONEY
Dear Narendrabhai,
Whereas it is not possible to totally eliminate all TIME-COST overruns , it is certainly possible to bring these overruns down to 5 % or less, provided you insist that PROJECT
PROPOSING MINISTERS / OFFICERS, strictly follow the procedure described in my following earlier e-mail :
Nothing prettier than PERT ! ………………………………………… [ 04 Dec 2015 ]
Extract :
My suggestions :
* When any Ministry submits any Project Proposal for Cabinet approval, it must
be accompanied by a PERT (Program Evaluation and Review Technique ) chart
, clearly showing all the " Activities " lying along the CRITICAL PATH ( earlier
known as the CRITICAL PATH METHOD )
That PERT Chart must accompany a tabulation showing, for each " Activity ",
# " Pessimistic Time "
# " Optimistic Time " , and the
# " Most likely Time "
Since Admiral Rickover , introduced this mandatory requirement for awarding
tender to build the first nuclear submarine, some 50 years ago , all US
government departments follow this procedure for all govt contracts
* Insist that all the government departments / contractors, responsible for
execution of any of these "activities", update the PERT chart status online on
the web site of the Project Monitoring Group
* PERT charts for all the projects should be made visible to the general public
* If there is any " slippage " in any activity lying on the CRITICAL PATH , the
name of the department or contractor responsible , must appear in bold RED
letters , against that activity
This is the only INNOVATION that we need , to ensure that the projects get
completed in time and within budget
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 06 June 2022
Related Readings :
Thank You, Dear Prime Minister ……………………….[ 13 Oct 2021 ]
No More Delayed Projects ? ……………………………….[ 26 Aug 2021 ]
Monitoring Projects in Real-time ? …………………….[ 11 Aug 2020 ]
PERT for Digital Dashboard…………………………………[ 27 Feb 2018 ]
Remembering Admiral Rickover ! ………………………[ 04 June 2017 ]
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