1. PROJECT MANAGEMENT
CAPTIVE
POWER
PLANT
PROJECT
Presentation by
Mahesh V. Kulkarni
Vth Term - Operations
Manipal University
 A Power plant

2. PROJECT – Turnkey in Nature
 2 x 2.5 MW Captive Power Plant spread over 4 acres of
land (free field)
 2 x G3612, 11 KV, 1500 RPM Natural Gas Gensets
 Customer: Southern Energy Development Corporation
Ltd. (SEDCO) – a Carborandum Universal Group
 Location: Nallur, Mannargudi (near Tanjavur), Tamilnadu
 Consultant: Aquatherm Consulting Engineers, Chennai
 Guarantees-
 Fuel Consumption,
 Lube oil Consumption,
 Genset output power

3. NEED FOR PROJECT MGMT.- WHY DID OUR COMPANY
FORM A PROJECT MGT. DEPARTMENT?
• Too many projects running
over time and over
budget
 Project scope creep
 Project management
responsibility not clear
 Too much emphasis on outputs
rather than
outcomes
 Insufficient emphasis on risks
Saves company TIME….MONEY
 Triple constraint
Quality
Scope
Time
Cost

4. Project department - Sandwich
Takeover from
Sales
Handover to Service
department
Sales Service
P
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o
j
e
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5. Five Phases of Project Management
 Phases
Developing the
Plan
Scoping the
Project
Launching the
Plan
Monitoring &
Controlling
Closing Out the
Project

6. Scoping the project- Primarily it is the definition and
control of what IS & IS NOT included in the project
Project Scoping Form
Project Name –
SEDCO
Project Manager –
Mahesh Kulkarni
Team Members –
05 nos.
Opportunity (Why do this project?): To earn profit
Project Goal: Smooth execution
Objectives: Timely completion within a allotted costs
Success Criteria (Outcomes): Effective commissioning of all
equipment by suppliers
Assumptions, Risks, Obstacles: Technological,Environmental,
Interpersonal, Cultural, Political

7. SCOPE
 Imported supply from USA – Value USD 1.5 Mn
 Indigenous supply (Balance of plant) – INR 2.62 Crores
 Erection of all supplied items
 Time frame – 6 months
 Imported scope by Letter of Credit
 Indigenous supply payment terms – 50 % advance, 30 % against supply
and 20 % after commissioning.
 33 KV Substation supply and erection by Bharat Bijlee
 Govt. approvals from 1. TNEB, 2. GAIL, 3. CEIG, 4. Pollution control board
 Total vendors in the project – 11 nos. (EPC Contractor – mechanical &
electrical, manufacturers of air compressors, air receivers, Radiator, NGR
Panel, Circuit breaker panel, MCC panel, main and auxiliary transformer,
LAVT panel, Control & Relay panel, etc.)

8. Developing The Plan
Construct/Analyze
Project Network
Prepare the
Project Proposal
Identify Project
Tasks (WBS)
Estimate Task
Duration
Determine Resource
Requirements

9. Project Planning Activity
• Create a work break
down structure (WBS)
for the project you
identified in the
scoping document.
Identify and sequence
tasks.

10. WBS - A WBS is the functional decomposition of a system, it breaks the
project into chunks of work at a level of detail that meets planning and
scheduling needs
WBS:
SEDCO PROJECT
3. CONSTRUCTION2. PROCUREMENT1. DESIGN & ENGINEERING
1.1 Sizing of
equipment
1.1.1 Foundation
1.1.2 Piping
layout
1.2 Drawings
1.3 Consultant
approvals
2.1 Order placement
2.1.1 Long
delivery items
2.1.2 Short
delivery items
2.2 Inspection
2.3 Clearance &
Transportation to
site
3.1 Unloading at site
& Erection
3.1.1 Erection of
equipment on foundation
3.1.2 Piping and cabling
3.2 Pre-commissioning
checks
3.3 Plant trial run
and handover
Advance

11. Project Planning: Resources
 1. People - skills and value
 2. Facilities – Office, AutoCAD,
computers and softwares, Vehicles,
etc.
 3. Equipment – like Crane –
hired
General Manager
…
DRAFTSMAN
…..
ELECTRICAL ENGR.
…….
Manager Projects
……..
SITE MANAGER
…….
Manager Projects
(S. Sridhar)
Project Manager
……
Commissioning Engr.
…..
Finance Manager
….
Principal …..
Suppliers for
indigenous supplies
(11 vendors)
Service Manager
(Singuttuvan)
Customer - SEDCO
(Project Mgr.)
Consultant–Aquatherm
….
4. Time – Six months
starting 1st
March

12. Role of a Project Manager
 Role:
Process
Responsibilities
People
Responsibilities
• Project issues
• Disseminating project information
• Mitigating project risk
• Quality
• Managing scope
• Metrics
• Managing the overall work plan
• Implementing standard processes
• Establishing leadership skills
• Setting expectations
• Team building
• Communicator skills

13. Duties & Responsibilities of PM
I. PLANNING:
 Breaking down Project into independent
activities or events with the help of Bar
Chart.
 Providing progress reporting at regular
intervals to the Customer, Consultant and
Caterpillar with a copy to Service
department.
 Reallocation / rearranging
money/resources to improve schedule.
III. INSPECTIONS & DESPATCHES:
 Witnessing the equipment inspection at
suppliers place.
 coordinating with Customer for allotting safe
equipment unloading and storage area at site.
IV. SITE CO-ORDINATION :
 Visiting site for checking Civil developments.
 Guiding mechanical contractor and Customer at
site for flushing of piping, welding & surface
preparation, pre-commissioning checks to suit
Caterpillar standards.
II. TECHNICAL ACTIVITIES:
 Preparation of Specification of material for
mechanical bought out items like Pipes,
Elbows, Valves, Flexible hoses required for
Cooling system, Starting air system.
 Preparation of Material specification for
fabricated items like Chimney, Exhaust &
Intake duct, etc.
 Preparation of Mechanical Drawings – As
built P & I drawings and Isometric
drawings for Natural Gas system, Air start
system, Cooling Water system, etc
V. COMMERCIAL:
 Evaluation of the offers from vendors techno–
commercially.
 Negotiating with suppliers effectively to avoid
cost over run & make maximum profit margins.
 Planning cash flow (in & out) with the help of
Finance department for smooth project
operation.
 Coordinating with Finance Department for
releasing the payment to suppliers after
checking proper attached documents.
 Collecting payment for additional supply of
material other than Purchase order.
 Calculating the profit earned in the project

14. Gantt Chart (Microsoft Office Project Professional
2003)
 Visual scheduling tool
 Graphical representation
of information in WBS
 Show dependencies
between tasks,
personnel, and other
resources allocations
 Track progress towards
completion

15. Gantt Chart – Example
Estimated time to complete a task
Tasks
Bars indicate time
requirement
Arrows indicate
task dependencies:
Predecessor task
Successor task

16. Look Out for the Creepers!
 Scope Creep - Change is constant – must be
accommodated (Comes from the customer)
 Civil design – due to change in civil structure by
Customer
 Power plant logic - Frequent changes in the electrical
logic by Customer’s site manager
Accommodated and completed the project on time

17. Project communication - Absolutely critical to the
success of projects!
 Project meetings with suppliers - Meets weekly to resolve short-term
conflicts, look ahead to the remaining development cycle. Attended by project
manager, project engineers, projects manager (if required).
 Planning meetings – Inter-organizational - review progress on goals,
resolution of cross division functional conflicts, perform mid-course corrections,
review cash flow, etc. Attended by division heads, project manager, GM (if reqd.)
 Fortnight coordination meetings with Customer and Consultants –
Meets for reviewing the progress, approvals, set milestones for future weeks,
commissioning schedule, etc. Attended by project manager, project engineers,
projects manager (if required).

18. Quality Management
 Quality Management is the process that
insure the project will meet the needs via:
 Quality Planning, Quality Assurance, and Quality
Control. Quality is ensured by
 Clearly Defined Quality Performance Standards
 Stage inspection of equipment to verify
conformity / adherence to specifications,
 Testing and Quality Assurance Processes will
ensure standards are satisfied
 Continuous ongoing quality control

19. Project Financial Management
 Divide and conquer
 To make a better estimate, divided the
project into individual subsystems.
 Then divided each subsystem further
into the activities that will be required to
develop it.
 Next, made a series of detailed
estimates for each individual activity.
 And sum the results to arrive at the
grand total estimate for the project.
 Tight control of costs by supervising any
changes in the scope.
 Preparation of cash inflow and outflow
statement
Budget

20. SUCCESSES
Customer Requirements
satisfied
Completed within
allocated time frame + 2
extra months with prior
notification (out of 2
months, 1 month recorded
as Force majeure)
Completed within
allocated budget
Accepted by the customer

21. Difficulties and Risks in Project Management
 Road Transport strike lasted for 2 weeks,
 Difficulty in transporting the heavy equipment to the rural area due
to lots of curves,
 Communist area – additional amount to Comrades for each truck,
 Language barrier – interior people speaks Tamil only,
 Slowing of erection activities due to heavy Monsoon,
 Erection contractor – Inexperienced junior engr. appointed at site,
 Delays due to short fall of material at site,
 Finance Manager transferring the project funds to other projects or
emergency without the consent of project manager. Thereby, delay
the payment to the Suppliers
 Food at site

22. LESSONS
 Planning and Engineering – most important,
 Contingency in Time need to be considered,
 PESTEL Analysis (Environment scanning) shall be done,
 Project management Training to the individuals,
 Getting the scale of the project management in proportion to
the size and impact of the project,
 Better monitoring of milestones (and remedial action
when milestones are not being met)
 Project team shall be micro-managing

23. Rewards – Direct & Indirect
 SEDCO admired our team efforts and gifted
a Silver Peacock Monument in a ceremony
 Our company announced a bonus of INR
30,000 to project team,
 Recognition in the company,
 New doors of opportunities opened.