A

Presentation on

CONSTRUCTION
MANAGEMENT&
ENTREPRENEURSHIP(BCV501)

by
Dr. Yashwanth. M. K
Associate Professor
Department of Civil Engineering
Maharaja Institute of Technology Mysore
Mandya-571 477
MODULE 1- PLANNING
AND SCHEDULING
PROJECT
“A project is a temporary endeavor undertaken to create a
unique product or service”.
▪ Each and every project has its own start date and a specific
end date. So it is called as temporary. It is unique because
the product or the service it is providing will be different in
some or the other way when compared to other products.
▪ Temporary means each project will be having its own
beginning and a definite end.
▪ The word temporary doesn’t mean that duration of project is
very small. Some projects get over in short periods/duration
and some last for several years.
▪ The end is said to be achieved when the purpose of the
project is served or the objective of the project has been
achieved.
▪ Durations of the project need not be same for all the
projects. It will be different for different projects. Even similar
projects durations get varied.
MANAGEMENT
1. Management is the science and art of planning, organizing, leading
and controlling the work of organization members and using all
available organization resources to reach stated organizational goals.

2. Management is a process of planning, decision making, organizing,

leading, motivation and controlling the human resources, financial,
physical, and information resources of an organization to reach its
goals efficiently and effectively.

Management has the following 3 characteristics

❑ It is a process or series of continuing and related activities.
❑ It involves and concentrates on reaching organizational goals.
❑ It reaches these goals by working with and through people and other
CHARACTERISCTICS OF MANAGEMENT
1. Management is goal oriented process
• Management always aims at achieving the organizational
objectives.
• The functions and activities of manager lead to the achievement of
organizational objectives.
• Example, if the objective of a company is to sell 1000 computers
then manager will plan the course of action, motivate all the
employees and organize all the resources keeping in mind the main
target of selling 1000 computers.
CHARACTERISCTICS OF MANAGEMENT
2. Management is Pervasive
• Management is a universal phenomenon.
• The use of management is not restricted to business firms only it is
applicable in profit-making, non-profit-making, business or non-
business organizations; even a hospital, school, club and house has
to be managed properly.
• Concept of management is used in the whole world whether it is
USA, UK or India.
CHARACTERISCTICS OF MANAGEMENT
3. Management is Multidimensional
Management does not mean one single activity but it includes three
main activities.
a) Management of work
• All organizations are set up to perform some task or goal.
• Management activities aim at achieving goals or tasks to be
accomplished.
• The task or work depends upon the nature of Business for example,
work to be accomplished in a school is providing education, in
hospital is to treat patient, in industry to manufacture some
product.
• Management makes sure that work is accomplished effectively and
efficiently.
CHARACTERISCTICS OF MANAGEMENT
3. Management is Multidimensional
b) Management of people
• People refer to Human resources and Human resources
are the most important assets of an organization.
• An organization can win over competitor with efficient
employees only because two organizations can have same
physical, technological and financial resources but not
human resources.
• Management has to get task accomplished through people only.
c) Management of operations
• Operations refer to activities of production cycle such as
buying inputs, converting them into semi- finished goods,
finished goods.
• Management of operations concentrates on mixing
management of work with management of people, i.e.,
deciding what work has to be done, how it has to be done
and who will do it.
CHARACTERISCTICS OF MANAGEMENT
4. Management is a continuous process
❑ Management is a continuous or never ending function.

❑ All the functions of management are performed continuously..

❑ Example planning, organizing, staffing, directing and controlling

are performed by all the managers all the time. Sometimes, they
are doing planning, then staffing or organizing etc.
❑ Managers perform ongoing series of functions continuously in the

organization.
5. Management is a group activity
❑ Management always refers to a group of people involved in

managerial activities.
❑ The management functions cannot be performed in isolation.

❑ Each individual performs his/her role at his/her status and

department, and then only management function can be executed.

❑ Even the result of management affects every individual and every

department of the organization so it always refers to a group effort

CHARACTERISCTICS OF MANAGEMENT
6. Management is a dynamic function
❑ Management has to make changes in goal, objectives and other
activities according to changes taking place in the environment.
❑ The external environment such as social, economic, technical and
political environment has great influence over the management.
7. Intangible
❑ Management function cannot be physically seen but its presence

can be felt.
❑ The presence of management can be felt by seeing the orderliness

and coordination in the working environment.

❑ It is easier to feel the presence of mismanagement as it leads to

chaos and confusion in the organization.

FUNCTIONS OF MANAGEMENT
There are five functions of management and leadership. These
functions separate the management process from other business
functions such as marketing, accounting and finance.
1. Planning
❑ The planning function of management controls all the planning
that allows the organization to run smoothly.
❑ Planning involves defining a goal and determining the most
effective course of action needed to reach that goal.
❑ Typically, planning involves flexibility, as the planner must
coordinate with all levels of management and leadership in the
organization.
❑ Planning also involves knowledge of the company’s resources
and the future objectives of the business.
FUNCTIONS OF MANAGEMENT
2. Organizing
❑ The organizing function of leadership controls the overall
structure of the company.
❑ The organizational structure is the foundation of a company;
without this structure, the day-to-day operation of the business
becomes difficult and unsuccessful.
❑ Organizing involves designating tasks and responsibilities to
employees with the specific skill sets needed to complete the
tasks.
❑ Organizing also involves developing the organizational structure
and chain of command within the company.
FUNCTIONS OF MANAGEMENT
3. Staffing
❑ The staffing function of management controls all recruitment and
personnel needs of the organization.
❑ The main purpose of staffing is to hire the right people for the
right jobs to achieve the objectives of the organization.
❑ Staffing involves more than just recruitment; staffing also
encompasses training and development, performance appraisals,
promotions and transfers.
❑ Without the staffing function, the business would fail because the
business would not be properly staffed to meet its goals.
FUNCTIONS OF MANAGEMENT
4. Coordinating
❑ The coordinating function of leadership controls all the
organizing, planning and staffing activities of the company and
ensures all activities function together for the good of the
organization.
❑ Coordinating typically takes place in meetings and other planning
sessions with the department heads of the company to ensure all
departments are on the same page in terms of objectives and
goals.
❑ Coordinating involves communication, supervision and direction
by management.
FUNCTIONS OF MANAGEMENT
5. Controlling
❑ The controlling function of management is useful for ensuring all
other functions of the organization are in place and are operating
successfully.
❑ Controlling involves establishing performance standards and
monitoring the output of employees to ensure each employee’s
performance meets those standards.
❑ The controlling process often leads to the identification of
situations and problems that need to be addressed by creating new
performance standards.
❑ The level of performance affects the success of all aspects of the
organization.
CONSTRUCTION MANAGEMENT
Construction management involves planning, budgeting,
coordinating, and supervising construction projects from start to
finish.

Construction management deals with economical consumption of the

resources available in the least possible time for successful
completion of construction project. ‘Men’, ‘materials’, ‘machinery’
and ‘money’ are termed as resources in construction Management

Construction management is a professional service that provides a

project’s owner(s) with effective management of the project's
schedule, cost, quality, safety, scope, and function.
CONSTRUCTION MANAGEMENT
Objectives of Construction Management
The main objectives of construction management are
1. Completing the work within estimated budget and specified time.
2. Maintaining a reputation for high quality workmanship.
3. Taking sound decisions and delegation of authority.
4. Developing an organization that works as a team.
CONSTRUCTION MANAGEMENT
Characteristics of Construction Management
➢ A project exists for a fix duration of time
➢ A project cycle consists of project preparation, implementation, and operation
phase.
➢ Construction projects generally employ high value and huge resources of men,
materials, and machines.
➢ Each project has a definite finish or completion, i.e. time bound.
➢ The project team is constituted of members belonging to different disciplines.
➢ A project is dynamic in nature and is subjected to many changes during its life
span.
➢ Each a project has a fix set of objectives. Once the objectives has been achieved,
the project ceases to exist.
➢ Each project is comprised of series of intermediate activities consuming
resources and time.
➢ Every project has many constraints in terms of availability of resources and
completion of time.
➢ The project work is normally entrusted to a project manager who coordinates the
work of various persons working on the project.
CONSTRUCTION MANAGEMENT
Importance of Construction Management
➢ Construction management provides necessary leadership, motivates
employees to complete the difficult tasks well in time and extracts
potential talent of its employees.
➢ Construction management provides importance for optimum utilization
of resources.
➢ Construction management is beneficial as the effective and efficient
management of construction project will avoid, escalation of cost, time
over-run, wastage of resources, unlawful exploitation of labor and
pollution of environment.
➢ It improves the quality and speed of work by using modern equipment
and machinery on construction.
➢ It arranges the completion of the work in the minimum possible time.
➢ It affects the cost of construction economy by adopting new techniques
of construction and supervision, etc.
➢ It checks the wastage of materials and labor.
CONSTRUCTION MANAGEMENT
Functions of Construction Management
1. Planning in Construction Management
It is the process of selecting a particular method and the order of work to be
adopted for a project from all the possible ways and sequences in which it
could be done. It essentially covers the aspects of ‘What to do’ and ‘How to
do it’.

Importance of construction project planning:

(a) Planning helps to minimize the cost by optimum utilization of available resources.
(b) Planning reduces irrational approaches, duplication of works and inter departmental
conflicts.
(c) Planning encourages innovation and creativity among the construction managers.
(d) Planning imparts competitive strength to the enterprise.
CONSTRUCTION MANAGEMENT
Importance of Construction Management
2. Scheduling in Construction Management
Scheduling is the fitting of the final work plan to a time scale.
It shows the duration and order of various construction
activities. It deals with the aspect of ‘when to do it’.
3. Organizing
Organizing is concerned with decision of the total construction
work into manageable departments/sections and systematically
managing various operations by delegating specific tasks to
individuals.
4. Staffing
Staffing is the provision of right people to each section /
department created for successful completion of a construction
project.
CONSTRUCTION MANAGEMENT
Importance of Construction Management
5. Directing
It is concerned with training sub ordinates to carryout assigned tasks,
supervising their work and guiding their efforts. It also involves
motivating staff to achieve desired results.
6. Controlling
It involves a constant review of the work plan to check on actual
achievements and to discover and rectify deviation through
appropriate corrective measures.
7. Co-ordinating.
It involves bringing together and coordinating the work of various
departments and sections so as to have good communication. It is
necessary for each section to aware of its role and the assistance to be
expected from others.
CONSTRUCTION MANAGEMENT
Types of Planning in Management

Strategic Tactical
Planning Planning
Planning

Operational Contingency
Planning Planning
CONSTRUCTION MANAGEMENT
Types of Planning in Management
1. Strategic Planning
Features
Long-term Focus: Strategic planning deals with the long-term
goals and objectives that an organization wants to set out to
achieve on its vision and mission.
Advantages:
• Clarity and Direction: Helps communicate direction of the
organization and how this is going to be realized, hence
facilitating organizational cohesiveness.
• Resource Allocation: Facilitates in identification of special
resources to focus on for financial, human and other resource
needs to support strategic initiatives.
• Competitive Advantage: Allows an organization to know the
business strengths to build on while having an insight of the
weaknesses to counter in the market.
CONSTRUCTION MANAGEMENT
Types of Planning in Management
1. Strategic Planning
Disadvantages
• Time-consuming: Thus, strategic planning may take a
considerable amount of time because of the need to collect,
shift through, and synthesize large amounts of information, as
well as to negotiate among the numerous interested parties.
• Resistance to Change: Success of strategic plans to be
implemented may be an issue of concern in an organization
since it may be met with little or lot of resistance depending
on the changes that are involved.
CONSTRUCTION MANAGEMENT
Types of Planning in Management
2. Tactical Planning
▪ Tactical planning focuses on the formulation of short-term
to the medium-term goals that help in the attainment of the
strategic goals of an organization.
▪ In operation, It turns strategic goals into tangible activities
and projects on the ground.
▪ Usually it is done at the departmental or at the functional
level in a given organization.
Advantages
• Alignment with Strategy: common employee ensures that
all daily operations and decisions made by the organization
corresponds to the organizations’ strategic plan.
• Enhanced Efficiency: Summaries the plan that needs to be
implemented alongside achievable targets and the time that is
required to complete them.
CONSTRUCTION MANAGEMENT
Types of Planning in Management
2. Tactical Planning
Advantages
• Coordination: It helps in organizing the functioning between
one department or a team and another department or a team
with a view to achieve goals that are common or mutual.
• Quick Response: Allows the organization to respond to new
opportunities or threats in the market environment as and
when they arise.
Disadvantages
• Narrow Focus: May be more short term oriented and thus
may not fully appreciated strategic consequences of short
term decisions.
• Risk of Inflexibility: The strong-form means that some
certain plans may close off chances for responding to change
or shift of market.
• Dependency on Strategic Alignment: Consequently, the
CONSTRUCTION MANAGEMENT
Types of Planning in Management
3. Operational Planning
❑ This type of planning looks at the daily, weekly and the
actual activities necessary for organizational effectiveness in
the achievement of the specific operations goals.
❑ It is developed for certain organizational activities or a
certain division of the organization like production, sales or
customer service.
❑ They are also drawn from the tactical plans and play a
central role of ensuring the strategy formulated is
implemented.
Advantages
• Enhanced Efficiency: Cuts costs of operation since it organizes the
executing processes and properly allocates the resources that are
available.
• Clear Direction: Major organizational advantage – organisational
objectives and expectations are clearly stated and communicated to all
employees, thus everyone is aware of what is expected of him/her.
CONSTRUCTION MANAGEMENT
Types of Planning in Management
3. Operational Planning
Advantages
• Resource Optimization: Economical in the control of resources
be it human resources, materials and other equipments.
• Continuous Improvement: This enables constant assessment
and optimization of the organizational procedures for higher
efficiency and effectiveness.
Disadvantages
• Potential Rigidity: May be set in concrete and do not take
alterations even if new information or conditions are introduced in
the organization.
• Limited Strategic Focus: Tends to concentrate more on the
technical activities where it may be blind to the strategic
consequences.
• Time and Resource Intensive: Preparation of operational strategies
is also quite exhaustive in terms of time and other resources that are
required to prepare them
CONSTRUCTION MANAGEMENT
Types of Planning in Management
4. Contingency Planning
Features
❑ Preparation for Uncertainty: Contingency planning mostly refers
to identifying and coming up with a plan to deal with an
eventuality that is likely to cause disturbance to the normal
proceeding.
❑ Risk Assessment: It encompasses recognition of risk and
opportunities that are likely to threaten the organization.
❑ Alternative Strategies: Aims at creating new methods of action
and a backup plan for coping with interruptions.
❑ Cross-functional Collaboration: Usual it is a teamwork that aims
to cover all the aspects of preparation.
Advantages
• Enhanced Resilience: Enhances the extent to which the
organisation can quickly control for incidents that occur and prevent
negativity arising out of such events from having a disruptive effect
CONSTRUCTION MANAGEMENT
Types of Planning in Management
4. Contingency Planning
Advantages
• Risk Mitigation: Prevents adversity situations from emerging,
and has a positive impact on the company’s financial and
organizational losses.
• Maintains Reputation: It is an important tool in protecting the
organization’s reputation through showing that the
organization constantly actively work on crisis management
and continuity plans.
Disadvantages
• Resource Intensive: It is not rare to hear that carrying out and
preserving detailed contingency plans may be time-consuming
and costly, as well as needing considerable staff effort.
• Complexity: Making and updating contingency management
for different contingencies can prove to be difficult and needs
constant check up and changes.
CONSTRUCTION MANAGEMENT
PROJECT
As per Clause 4.1.1 A project is generally a non-recurring task having
a definable beginning and end, with a definite mission and has a set
of objectives and achievements.
PROJECT MANAGEMENT
As per Clause 4.1.1 Project management is application of knowledge,
skills, tools and techniques to achieve the objectives of a defined
project with the aim to ensure that a project is completed within the
scheduled time, authorized cost and to the requirement of quality
standards.
CONSTRUCTION PROJECT MANAGEMENT
Construction project management refers to such project
management when applied to construction of built facility.
Project objectives depend on the requirements of the built facility.
From the point of view of construction project management, project
objectives may be defined in terms of scope, time, cost and quality.
CONSTRUCTION PROJECT LIFE-CYCLE
❑ Construction project life cycle consists of project
formulation and appraisal, project development,
planning for construction, tender action, construction,
and commissioning and handing over, as main stages.
❑ These stages involve defined decisions, deliverables and
completion of mile-stones for control of project,
ensuring that the adverse impact of uncertainties is
overcome at each stage in the progress.
CONSTRUCTION PROJECT LIFE-CYCLE
CONSTRUCTION PROJECT STAGES
CONSTRUCTION PROJECT STAGES
(A)Construction Project Formulation (IS 16416:2016)
❑ It is systematic development of an idea, a need or an
opportunity into a project proposal, outlining the project
scope and objectives of the proposed project to be
completed within the requirements of time, cost, quality,
safety, etc.
❑ Construction project formulation deals with assessing scope
and requirements of the project meeting the client’s needs
while meeting with environmental impact assessment (EIA),
and sustainability aspects.
CONSTRUCTION PROJECT STAGES
(A)Construction Project Formulation (IS 16416:2016)

Flow chart for Construction Project

Formulation
CONSTRUCTION PROJECT STAGES
(A)Construction Project Formulation
❑ Project formulation is necessary to frame the outline of the
proposed project including the scope of the work involved,
its duration, the preliminary costs involved, quality
assurance as well as its viability so as to achieve the
objectives of the owner/client.
❑ For successful management of construction projects, the
earlier stages when the construction project is conceived,
formulated and its feasibility assessed, leading to decision to
implement the project, are equally important.
CONSTRUCTION PROJECT STAGES
(A)Construction Project Formulation
Factors Affecting
a) Relevance to the objectives of the owner/ client;
b) Technical soundness,
c) Environmental impact,
d) Economic requirements; aspects and funding.
e) Project financing.
f) Cost-effectiveness
g) Sustainability of the project;
h) Scope for future expansion;
i) Social and political aspects;
j) Legal aspects; and k) Ethics.
CONSTRUCTION PROJECT DELIVERY MODELS
❑ Project delivery model determines the manner in which
the project is planned, designed, executed and contract
administration carried out.
❑ It also determines the contractual relationships between
the owner/client, design consultants and construction
agency.
❑ The delivery model shall define the span of control and
role and responsibilities of each of the above parties.
❑ The main types of project delivery models that are in
vogue in construction projects are: (a) Traditional
design-bid-build, (b) Design-build with variants, (c) Turn-
key and (d) Build, operate and transfer and its variants.
CONSTRUCTION PROJECT ORGANIZATION STRUCTURE/TEAM
❑ Organizational structure depends on the project delivery
model.
❑ For any given project delivery model, an appropriate
organizational structure shall be selected so as to
facilitate constitution of teams across various agencies
involved.
CONSTRUCTION PROJECT ORGANIZATION STRUCTURE/TEAM
❑As an example, a typical organization chart for Design-
Bid-Build model is shown in figure
FUNCTIONS OF CONSTRUCTION PROJECT MANAGEMENT
a) Scope management.
b) Procurement management.
c) Time management.
d) Cost management.
e) Quality management.
f) Risk management.
g) Communication management.
h) Human resources management.
j) Health and safety management.
k) Sustainability management.
m) Integration management and
n) Other management processes.
FUNCTIONS OF CONSTRUCTION PROJECT MANAGEMENT
Scope Management
❑ Scope management includes the processes of scope
planning, scope definition, scope verification, scope
monitoring, and change control.
❑ Scope planning, scope definition and scope verification are
associated with the preconstruction phase of the project.
Scope monitoring and change control are critical to the
construction/installation stage in order to control time and
cost over-runs.
❑ The work break down structure of the project shall be the
basic tool for defining the scope baseline.
FUNCTIONS OF CONSTRUCTION PROJECT MANAGEMENT
Scope Management
❑ Scope control should aim to identify factors influencing
scope change, determine the impact of scope changes and
establish the system for scope change approval and revision
of scope baseline.
❑ Accordingly, a detailed scope management plan should be
drawn to lay down all the necessary practices including
technical and organizational interfaces.
❑ It should be ensured that project concept, details and
functions which are established and recorded during the
finalization stage, remain same except minor changes
and/or authorized variations.
FUNCTIONS OF CONSTRUCTION PROJECT MANAGEMENT
Scope Management
Benefits
a) Larger support in planning and controlling the project;
b) All stakeholders arrive at a common understanding about
what is to be done in the project and what is not to be
done;
c) Plays a vital role in listing out the expected deliverables;
d) Avoids uncontrolled scope variation and hence associated
time/cost over-runs, contractual disputes, etc.
CONSTRUCTION MANAGEMENT V/S PROJECT MANAGEMENT
 STATUTORY AND REGULATORY
REQUIREMENTS IN CONSTRUCTION
1. LAYOUT AND BUILDING PLAN APPROVAL

• Building Plans: Before starting any construction, it is

necessary to submit detailed architectural and structural
drawings to local municipal authorities or urban
development bodies for approval.
• Compliance: The plans should conform to zoning
regulations, land-use rules, floor-area ratio (FAR), and other
applicable laws.
• Authorities Involved: Municipal Corporations, Urban
Development Authorities, and in some cases, the Department
of Town and Country Planning
2. CONTRACTUAL REQUIREMENTS
• Construction Contract : Contracts between the client
(property owner) and contractor must comply with national
and local laws, including labor laws and tax regulations.
• Terms and Conditions : Contracts should clearly define the
scope of work, payment terms, timelines, and dispute
resolution mechanisms.
• Compliance with Industry Standards : All parties should
ensure that construction practices comply with standard codes
like the National Building Code (NBC) or Bureau of Indian
Standards (BIS).
3. FIRE & SAFETY REGULATIONS
• Fire Safety: Ensure that the building design and
construction meet fire safety standards. This includes having
adequate fire exits, fire suppression systems (sprinklers),
alarms, and fire-resistant materials.
• Regulatory Approval: In India, fire safety approvals are
usually given by the local Fire Department or Chief Fire
Officer. Regular inspections may be required to ensure
ongoing compliance
3. FIRE & SAFETY REGULATIONS
4. QUALITY CONTROL
• Construction Quality: Adherence to structural safety codes
and standards is critical for ensuring building longevity and
occupant safety.
• Third-Party Testing: For large projects, third-party quality
assurance teams or consultants may conduct material tests
(cement, concrete, steel), structural audits, and other checks
during construction.
• Certificates: The building should receive a Quality
Completion Certificate from the concerned authority upon
successful construction.
5. ENVIRONMENTAL REGULATIONS
• Environmental Impact Assessment (EIA): For larger
projects, an EIA may be required. This process evaluates the
potential environmental effects of the construction project,
including waste management, water, and air quality concerns.
• Green Building Compliance: For sustainability, developers
may choose to comply with voluntary certifications such as
LEED (Leadership in Energy and Environmental Design) or
IGBC (Indian Green Building Council).
• Regulatory Body: The Ministry of Environment, Forest, and
Climate Change (MOEFCC) or State Environmental Authorities
usually oversee environmental clearances.
6. COMMENCEMENT CERTIFICATE
• Commencement Certificate (CC): Issued by local
authorities, this certificate allows construction to start after
the building plans have been approved. It ensures that
construction is taking place as per approved designs and local
laws.
• Stages of Approval: The CC is typically issued in stages,
after verification that construction aligns with the previously
approved plans.
7. LEGAL & PUBLIC POLICIES
• Legal Compliance: Ensure adherence to real estate laws like
RERA (Real Estate (Regulation and Development) Act, 2016),
which mandates that developers register projects with the
regulatory authority.
• Land Title Clearance: The land on which construction is to
take place must have a clear title. This ensures there are no
disputes or pending litigation regarding ownership.
• Labor Laws and Safety: Construction companies must
comply with labor laws, ensuring safe working conditions, fair
wages, and insurance for workers under Building and Other
Construction Workers (BOCW) Act.
CERTICATE AGENCIES

1. Land Title and Zoning Clearance from the municipal

authority.
2. Building Plan Approval from the local body
(Municipality/Corporation/Development Authority).
3. Environmental Clearance if applicable.
4. Fire Safety Approval from the Fire Department.
5. Commencement Certificate from the urban local body.
6. Occupancy Certificate after project completion, verifying
safety and compliance
SCHEDULE MANAGEMENT
❑ Scheduling is the process of arranging, controlling and
optimizing work and workloads in a production process or
manufacturing process.
❑ A schedule or a timetable, as a basic time-management tool,
consists of a list of times at which possible tasks, events, or
actions are intended to take place, or a sequence of events
in the chronological order in which such things are intended
to take place.
❑ The process of creating a schedule - deciding how to order these
tasks and how to commit resources between the varieties of
possible tasks - is called scheduling, and a person responsible for
making a particular schedule may be called a scheduler.
❑ In project management, a schedule is a listing of a project's
milestones, activities, and deliverables, usually with intended
start and finish dates.
❑ Time planning or scheduling is conducted to calculate the
realistic or workable time schedule of the project considering
the project characteristics, complexities and quantum of
work to be executed.
Figure : TYPICAL TIME PLANNING/SCHEDULING
PROCESS
SCHEDULING TECHNIQUES/TOOLS

Work Break
Down
Structure
(WBS)
Critical Path
Gantt Method
Charts
(CPM)
Program
Evaluation
Review
Technique(PERT)
WORK BREAKDOWN STRUCTURE
❑A Work Breakdown Structure (WBS) is a project
management tool that decomposes a project into smaller,
more manageable components.
❑ A work breakdown structure (WBS) is a project management
tool that helps organize and plan construction projects by
breaking them down into smaller, more manageable tasks.
❑A WBS in project management is a hierarchical
decomposition of a project into smaller components.
❑ A work breakdown structure (WBS) is a visual, hierarchical
and deliverable-oriented deconstruction of a project.
WORK BREAKDOWN STRUCTURE
❑ The Project Management Institute (PMI) Project
Management Book of Knowledge (PMBOK) defines the
Work Breakdown Structure as a “deliverable oriented
hierarchical decomposition of the work to be executed by the
project team.”
❑ There are two types of WBS: 1) Deliverable-Based and
2) Phase-Based. The most common and preferred approach
is the Deliverable-Based approach.
 WORK BREAKDOWN STRUCTURE
1. Deliverable-Based Work Breakdown Structure

A Deliverable-Based Work Breakdown Structure clearly

demonstrates the relationship between the project
deliverables (i.e., products, services or results) and the scope
(i.e., work to be executed).
 WORK BREAKDOWN STRUCTURE
1. Deliverable-Based Work Breakdown Structure
Figure shows an example of a Deliverable-Based WBS for building a
house.

In the above Figure, the Level 1 Elements are summary deliverable

descriptions. The Level 2 Elements in each Leg of the WBS are all
the unique deliverables required to create the respective Level 1
deliverable.
WORK BREAKDOWN STRUCTURE
2. Phase-Based Work Breakdown Structure
❑ A Phase-Based WBS, the Level 1 has five Elements.
❑ Each of these Elements are typical phases of a project.
❑ The Level 2 Elements are the unique deliverables in each
phase.
❑ Regardless of the type of WBS, the lower Level Elements are
all deliverables.
❑ A Phase-Based WBS requires work associated with multiple
elements be divided into the work unique to each Level 1
Element.
WORK BREAKDOWN STRUCTURE
2. Phase-Based Work Breakdown Structure
WORK BREAKDOWN STRUCTURE
Typical Example of Work Breakdown Structure
WORK BREAKDOWN STRUCTURE
Working of Work Breakdown Structure
A good Work Breakdown Structure is created using an iterative
process by following these steps and meeting these guidelines:
WORK BREAKDOWN STRUCTURE
Working of Work Breakdown Structure
BAR CHART(GANTT CHART)
❑ It is one of the oldest and the simplest methods in planning
and programming construction projects.
❑ This chart is named after Henry Gantt, who popularized this
type of visual scheduling at the start of the 20th century.
❑ Gantt Chart in very simple terms, is a bar chart that is used
to illustrate a variety of details about any construction project,
such as when is should be started and completed, and what
activities are included as part of it.
❑ Its strength lies in its ability to display the start and finish
dates of different components of a project in a simple,
horizontal bar chart format.
 BAR CHART(GANTT CHART)

❑ On the left of the chart is a list of the activities and along

the top is a suitable time scale.
❑ Each activity is represented by a bar; the position and
length of the bar reflects the start date, duration and end
date of the activity.
BAR CHART(GANTT CHART)
DURATION OF AN ACTIVITY
The duration of the activity may be calculated by knowing the
amount of activity (size or area of activity) and knowing the
productivity of the team.
BAR CHART(GANTT CHART)
BENEFITS
❑ Clarity: Gantt chart has the ability to show and clarify
multiple tasks and timelines.
❑ Communication: It is a visual method to help project team
members understand task progress.
❑ Motivation: Gantt charts offer project teams the ability to
focus work at the front of, or at the tail end of a task
timeline.
❑ Who is working on each task and When tasks start and
finish.
BAR CHART(GANTT CHART)
DISADVANTAGES/LIMITATIONS
❑ The length of the bar does not indicate the amount of work.
❑ They all the time need to be updated.
❑ Difficult to see on one sheet of paper.
❑ The Critical path (C.P) cannot be clearly indicated.
❑ The creation and management of the Gantt chart is a tough
process.
❑ A regular update of the Gantt chart is a complex process.
BAR CHART(GANTT CHART)
CREATING BAR CHART
BAR CHART(GANTT CHART)
CREATING BAR CHART
BAR CHART(GANTT CHART)
CREATING BAR CHART
SEQUENCING IN CONSTRUCTION
❑ Construction sequencing is the process in which a
construction project is done in phases.
❑ Sequencing considers several factors, such as available
resources, spatial constraints, the engineering order, and
project activities.
SEQUENCING IN CONSTRUCTION
Sequences of Work in Building Construction
1. Paper Work.
2. Centre-line Marking.
3. Excavation.
4. Foundation – PCC, Footing Reinforcement, Shuttering
Footing Concrete.
5. Column Casting or Size stone Masonry work.
6. Damp Proof Course.
7. Plinth Beam.
8. Construction of walls.
9. Construction of Lintels.
10. Roof slab.
11. Plastering.
12. Fixing of Doors and Windows.
13. Electrical and Plumbing Works.
14. Flooring.
15. Painting.
DEPENDENCY IN CONSTRUCTION
❑ A dependency in project management refers to a series of
tasks that are interrelated.
❑ Dependencies are the interrelations that exist between
project activities.
❑ These dependencies determine the order in which project
tasks must be executed.
DEPENDENCY IN CONSTRUCTION
Types of Task Dependencies
These are the four types of task dependencies you might
encounter when scheduling your projects.
1.Finish-to-start (FS): This is the most common type of task
dependency. A finish-to-start task dependency means a task
can’t start until its preceding task is finished. This occurs in
most projects where work needs to be executed sequentially.
2.Finish-to-finish (FF): A finish-to-finish task dependency
happens when a task can’t finish until its preceding task is
completed as well. This is common in projects where tasks can
be executed simultaneously, but must be finished in
sequence.
DEPENDENCY IN CONSTRUCTION
Types of Task Dependencies
3. Start-to-start (SS): A start-to-start task dependency
indicates that there’s a task that can’t start unless its preceding
task starts. Once the first task starts, then the second can start
and they can both be executed simultaneously.
4. Start-to-finish (SF): This isn’t a common task dependency,
as it only occurs under specific circumstances. The start-to-
finish task dependency occurs whenever a task needs its
preceding task to start before it can finish.
DEPENDENCY IN CONSTRUCTION
Types of Task Dependencies
1. Finish-to-Start (FS): In a Finish-to-Start dependency, Task A
must be completed before Task B can start.
2. Finish-to-Finish (FF): In a Finish-to-Finish dependency, Task
A must be completed before Task B can be completed.
3. Start-to-Finish (SF): In a Start-to-Finish dependency, Task
B cannot be completed before Task A has started.
4. Start-to-Start (SS): In a Start-to-Start dependency, Task B
cannot start before Task B has started.
ACTIVITY
An activity is the actual performance of the task and requires
time and resources for its completion. It is the work required
to complete a specific task. The resources may be
Manpower, Materials, Space, and Facilities etc.

Examples:
Excavate Trench: is an activity
Mix Concrete: is an activity
Lathe Installed: is not an activity
Design Completed: is not an activity
ACTIVITY
A project may consist of number of Activities. Depending
upon the Interdependency, we can categorize activities as
1. Parallel Activities: Activities which can be performed
simultaneously and independently to each other are known as
Parallel Activities.
2. Serial Activities: Activities which are to be performed one
after the other in succession are called Serial Activities. These
activities cannot be performed independently to each other.
3. Predecessor Activities: Activity which has to be
performed before another activity can begin are called
Predecessors Activities to that activity.
4. Successor Activities: Activities that can be performed
after the performance of other activity are known as
Successor Activities to that Activity.
EVENT
An event is a specific instant of time, which makes the
start or end of an activity. Event consumes neither time
nor resources.
Examples:
Design Completed: is an event
Excavation completed: is an event
Excavate Foundation: is not an event
An event has 3 basic properties.
1. An event is either the start or completion of an activity.
2. An event represent a noteworthy, significant and
recognizable point in the project.
3. An event is an accomplishment occurring at an
instantaneous point of time, but requiring no time or
resource itself.
EVENT
Representation of Event
In a network diagram, events are represented by Nodes.
The shape of the nodes may be
EVENT
Specifying the Event
A particular event out of various events on the network
diagram may be specified as:
1. Tail Event: it is the one which marks the beginning of an
Activity. If a particular tail event represents the
commencement of the project, it is known as the Initial Event.
2. Head Event: All activities have an ending i.e. again a
specific point of time and is marked by an event. Such an
event is known as Head Event. If the particular event marks
the completion of the project it is known as Final Event or
End Event.
3. Dual Role Event: these events are head event to some
activity and tail event to other activity. All events except
initial and final events are Dual Role Events.
CRITICAL PATH METHOD(CPM)
“The Critical Path Method is the sequence of scheduled
activities that determines the project's duration.”
“The Critical Path is the longest-duration path through the
network”.
“It is a sequence of critical tasks/activities and is the
largest path in the project network”.
CRITICAL PATH METHOD(CPM)
❑ It gives us the minimum time which is required to complete
the entire project.
❑ The activities in the critical path are known as critical
activities and if these activities are delayed then the
completion of the entire project is also delayed.
❑ These scheduled activities must be performed if the project
is to be considered a success. Moreover, they must be
completed in a specific order.
❑ The significance of the Critical Path is that the Activities that
lie on it cannot be delayed without delaying the Project.
Because of its impact on the entire project, Critical Path
analysis is an important aspect of project planning
CRITICAL PATH METHOD(CPM)
How to find the critical path in a project
• Step 1: Identify all tasks required to complete the project
(WBS).
• Step 2: Determine the sequence of tasks.
• Step 3: Draw a network diagram showing each task.
• Step 4 : Step 3: Estimate the duration of each task.
• Step 5: Determine the Earliest Start time, Earliest Finish time,
Latest Finish time and Latest Start time. These times give you a
date range (or float time) in which you can start each activity
and get it finished before the next activity has to begin.
• Step 5: Identify the critical path.
• Step 7: Monitor the critical path.
CRITICAL PATH METHOD(CPM)
EXAMPLES OF CPM
1.
CRITICAL PATH METHOD(CPM)
SOLUTION

NETWORK DIAGRAM
CRITICAL PATH METHOD(CPM)
SOLUTION

DURATION ALONG WITH PATH

CRITICAL PATH METHOD(CPM)
SOLUTION

CALCULATION OF EARLY START

TIME(EST) & LATE FINISH TIME(LFT)
CRITICAL PATH METHOD(CPM)
SOLUTION

CALCULATION OF EARLY FINISH TIME(EFT),

LATE START TIME(LST) & TOTAL FLOAT
CRITICAL PATH METHOD(CPM)
SOLUTION

CALCULATION OF FREE FLOAT

CRITICAL PATH METHOD(CPM)
SOLUTION

CALCULATION OF INDEPENDENT FLOAT

CRITICAL PATH METHOD(CPM)
EXAMPLES OF CPM
2.
CRITICAL PATH METHOD(CPM)
EXAMPLES OF CPM
Solution
Since the project manager's goal is to complete the project as quickly
as possible (without compromising on quality), we'll try to find the
earliest finish time for each activity.
To do this, organize all tasks into a flowchart and note their durations
next to the task ID. The arrows indicate the sequence of activities.
We'll mark the Earliest Start (ES) time to the left of the activity and
the Earliest Finish (EF) time to the right.
CRITICAL PATH METHOD(CPM)
EXAMPLES OF CPM
Solution
Mark the Start Time (S) to the left and right of the first activity. Usually, this
would be 0.
Now mark the Earliest Start (ES) time of each activity. This is given by the
largest number to the right of the activity's immediate predecessor (i.e. its
Earliest Finish time, or EF).
If the activity has two predecessors, the one with the later EF time would
give you the ES of the activity.
CRITICAL PATH METHOD(CPM)
EXAMPLES OF CPM
Solution
The EF of an activity is given by its Earliest Start time (ES) and its
duration (t), i.e. ES + t.
Thus, if an activity's ES is 20 and lasts 10 days, its EF will be 30.
Mark all these figures in the flowchart.

The longest path will be the “critical path”.

The final figure to the right of the last task in the sequence
shows the minimum time the project will take to finish.
CRITICAL PATH METHOD(CPM)
EXAMPLES OF CPM
3.
ACTIVITY PRECEDENCE DURATION
A - 5
B - 4
C A 8
D B 8
E B 8
F B 5
G C, D 8
H E, I 22
I F 2
J F 12
CRITICAL PATH METHOD(CPM)
FLOAT OR SLACK IN PROJECT MANAGEMENT
A concept related to and crucial for using the Critical Path
Method is float or slack.
In project management, “float” defines the amount of time a
task can be delayed without causing a delay in:
1. Any subsequent, dependent tasks are called “free float.”
2. Any delay in the overall project is called “total float.”
Any activity or task on the critical path has zero float. That is,
you can’t delay it without causing a delay in the project or
dependent tasks.
However, plenty of other activities in the project can be
delayed. The quantification of this delay is called the “float.”
CRITICAL PATH METHOD(CPM)
BENEFITS
❑ It shows the graphical view of the project.
❑ It discovers and makes dependencies visible.
❑ It helps in project planning, scheduling, and controlling.
❑ It helps in contingency planning.
❑ It shows the critical path, and identifies critical activities
requiring special attention.
❑ It helps you assign the float to activities and flexibility to float
activities.
❑ It shows you where you need to take action to bring project
back on track. Although the critical path is very useful tool
in project planning, it also has some limitations and
drawbacks.
CRITICAL PATH METHOD(CPM)
LIMITATIONS/DRAWBACKS
❑ The critical path method is an optimal planning tool,
which always assumes that all resources are available
for the project at all time.
❑ It does not consider resource dependencies.
❑ There are chances of mis-using float or slack.
❑ Less attention on non-critical activities, though sometimes
they may also become critical activities.
❑ Projects based on the critical path often fail to be completed
within the approved time duration.
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
❑ Program Evaluation Review Technique (PERT) is a project
management planning tool used to calculate the amount
of time it will take to realistically finish a project.
❑ Project Evaluation and Review Technique (PERT) is a
procedure through which activities of a project are
represented in its appropriate sequence and timing.
❑ PERT charts are used to plan tasks within a project —
making it easier to schedule deliverables and coordinate
with team members.
❑ The PERT chart is used to schedule, organize and co-
ordinate tasks within the project.
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
❑ The objective of PERT chart is to determine the critical path,
which comprises critical activities that should be completed
on schedule.
What does a PERT chart contain?
PERT is similar to critical path in that they are both used to
visualize the timeline and the work that must be done for a
project. However with PERT, you create three different time
estimates for the project:
•The shortest possible amount of time each task will take
•The most probable amount of time
•The longest amount of time tasks might take if things don't go
as planned
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
❑ The objective of PERT chart is to determine the critical path,
which comprises critical activities that should be completed
on schedule.
What does a PERT chart contain?
PERT is similar to critical path in that they are both used to
visualize the timeline and the work that must be done for a
project. However with PERT, you create three different time
estimates for the project:
•The shortest possible amount of time each task will take
•The most probable amount of time
•The longest amount of time tasks might take if things don't go
as planned
PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
How to Conduct a Program Evaluation and Review
Technique (PERT)

There are two main steps when determining the PERT Estimate.
These two steps are:
• Step 1: Determine optimistic, pessimistic, and most likely
estimates
• Step 2: Calculate PERT Estimate using the PERT Formula
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
How to Conduct a Program Evaluation and Review
Technique (PERT)
Step 1: Determine optimistic, pessimistic, and most likely
estimates
To conduct PERT Analysis, three-time estimates are obtained
for every activity along the Critical Path.
• Optimistic Time (O): The minimum possible time required to
accomplish a task, assuming everything proceeds better than
is normally expected.
• Pessimistic Time (P): The maximum possible time required
to accomplish a task, assuming everything goes wrong
(excluding major catastrophes).
• Most likely Time (M): the best estimate of the time required
to accomplish a task, assuming everything proceeds as normal.
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
How to Conduct a Program Evaluation and Review
Technique (PERT)

Step 2: Calculate PERT Estimate

After completing Step 1, use the (optimistic, pessimistic, and
most likely) estimates in the formula below to calculate the
PERT estimate for the project.
Formula: (P+4M+O)/6
Example: (8 + 4(14)+20)/6 = 14 Weeks
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
EXAMPLE
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
SOLUTION
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
SOLUTION
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
SOLUTION
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
SOLUTION
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
SOLUTION
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
SOLUTION
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
Characteristics of PERT
1. It serves as a base for obtaining the important facts for
implementing the decision-making.
2. It forms the basis for all the planning activities.
3. PERT helps management in deciding the best possible
resource utilization method.
4. PERT take advantage by using time network analysis
technique.
5. PERT presents the structure for reporting information.
6. It helps the management in identifying the essential
elements for the completion of the project within time.
7. It specifies the activities that from the critical path.
8. It describes the probability of completion of project before
the specified date.
9. It describes the dependencies of one or more tasks on each
other.
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
ADVANTAGES
1. Estimation of completion time of project is given by the
PERT.
2. It supports the identification of the activities with slack time.
3. The start and dates of the activities of a specific project is
determined.
4. It helps project manager in identifying the critical path
activities.
5. PERT makes well organized diagram for the representation
of large amount of data.
 PROGRAM EVALUATION REVIEW
TECHNIQUE (PERT)
DISADVANTAGES
1. The complexity of PERT is more which leads to the problem
in implementation.
2. The estimation of activity time are subjective in PERT which
is a major disadvantage.
3. Maintenance of PERT is also expensive and complex.
4. The actual distribution of may be different from the PERT
beta distribution which causes wrong assumptions.
DIFFERENCE B/W CPM AND PERT
Cost management is the process of estimating, allocating, and
controlling project costs.
Cost management is the process of estimating, budgeting,
and controlling project costs.
❑ The cost management process begins during the planning
phase and continues throughout the duration of the project
as managers continuously review, monitor, and adjust
expenditures to ensure the project doesn't go over the
approved budget.
❑ The cost management process allows a business to predict
future expenses to reduce the chances of budget overrun.
COST MANAGEMENT – CREATE SCHEDULING
• Define Work Breakdown Structure (WBS): Break down the
project into smaller tasks, which allows for easier planning and
tracking.
• Task Sequencing and Dependencies: Identify dependencies
between tasks and the order in which they need to be
completed.
• Estimate Time Durations: Each task's duration should be
estimated based on available resources and historical data.
• Develop the Project Schedule: Use project management
software (e.g., MS Project, Primavera) to create a visual schedule
that includes start and finish dates for each task. Consider using
Gantt charts or other scheduling tools
COST MANAGEMENT – RESOURCE PLANNING
Resource planning is the process of forecasting future
resource requirements for a business, project or scope of
work. To create a resource plan, start defining the project
scope, a document that details the project activities that will be
done.
Once the project activities have been defined, project
managers usually rely on historical data, expert opinions, and
resource planning tools such as a resource breakdown
structure (RBS) to estimate the resources that will be needed.
The resource planning of a project can be divided into the
following steps.
• Estimate Project Resource Requirements: Determine the
type, quality and quantity of resources needed for a project to
be successful.
COST MANAGEMENT – RESOURCE PLANNING
• Assess Resource Capacity: Evaluate the organization’s
resource capacity and determine how many resources are
required to complete a project by considering the skills,
availability and working hours of team members.
• Purchase Project Resources: Buy or rent products, goods
and services by paying a desired amount of money. This
procurement involves requesting, ordering and obtaining
resources.
• Make a Resource Schedule: Assigning resources to projects
and tasks within a specific time frame to ensure that all
resources are not over or under-allocated at any point in the
project.
• Establish a Resource Tracking System: Software that
monitors the work on a project, collecting data on resource
utilization, availability, performance and reporting to identify
areas of inefficiency or overuse.
COST MANAGEMENT – COST ESTIMATION
❑ Project cost estimating consists of assigning costs to the
resources you need to execute tasks.
❑ Making a project estimate is one of the most important
steps in the cost management process because it lays the
base for your project budget.
COST MANAGEMENT – COST ESTIMATION
• Implement Cost Estimation Techniques: There are
several project cost estimating techniques you can use
depending on the characteristics of your project including
analogous, parametric, bottom-up and three-point estimation.
• Use a Cost Breakdown Structure: It estimates costs by
breaking down the project into tasks and estimating how much
each task will cost to complete.
• Make a Project Estimate: Forecast direct and indirect costs,
such as labor, materials, equipment, overhead and vendor fees.
• Establish a Cost Baseline: A cost baseline is the total cost of
a project’s activities and resources plus any known risks. It’s
calculated by adding the project’s cost to a contingency
reserve.
COST MANAGEMENT – COST ESTIMATION
1. Analogous Estimating
Seek the help of experts who have experience in similar
projects, or use your own historical data. If you have access to
relevant historical data, try analogous estimating, which can
show precedents that help define what your future costs will
be in the early stages of the project.
2. Parametric Estimating
There’s statistical modeling or parametric estimating, another
cost estimation method that also uses historical data of key
cost drivers and then calculates what those costs would be if
the duration or another of the project is changed.
3. Bottom-Up Estimating
A more granular approach is bottom-up estimating, which
uses estimates of individual tasks and then adds those up to
determine the overall cost of the project. This cost-estimating
method is even more detailed than parametric estimating and
is used in complex projects with many variables such as
COST MANAGEMENT – COST EVALUATION
Cost evaluation is a crucial aspect of project planning and
control, as it helps organizations make informed decisions
regarding resource allocation and budgeting.

COST EVALUATION TECHNIQUES

COST MANAGEMENT – COST EVALUATION
1. Cost-Benefit Analysis: commonly used technique, which
involves comparing the costs of implementing a project with
the expected benefits it will generate. This technique helps
decision-makers assess the financial viability of a project and
determine whether the benefits outweigh the costs.
COST MANAGEMENT – COST EVALUATION
2. Earned Value Management (EVM): EVM is a technique that
integrates cost, schedule, and performance measurements to
provide a comprehensive view of project progress.
It allows project managers to track the actual costs incurred
against the planned costs and assess the project's performance
in terms of schedule adherence and budget utilization.
By comparing the earned value (the value of work completed)
with the planned value (the value of work scheduled), project
managers can identify cost overruns or savings and take
corrective actions accordingly.
COST MANAGEMENT – COST EVALUATION
3. LIFE CYCLE COSTING: life cycle costing involves
evaluating the total cost of a project over its entire
life cycle, including the initial investment, operational costs,
maintenance expenses, and disposal costs. This technique
helps organizations make informed decisions by considering
the long-term financial implications of a project.
COST MANAGEMENT – OPTIMIZATION & TRACKING
Optimization Strategies

1. Budgeting
1. Develop a detailed budget based on historical data and
future forecasts.
2. Use zero-based budgeting to justify every expense.
2. Cost-Benefit Analysis
1. Evaluate potential projects by comparing the expected
benefits to the costs.
2. Prioritize projects with the highest return on investment
(ROI).
3. Lean Management
1. Implement lean principles to eliminate waste and
streamline processes.
2. Focus on value-added activities.
COST MANAGEMENT – OPTIMIZATION & TRACKING
4. Supplier Negotiation
1. Regularly review and negotiate contracts with suppliers.
2. Consider bulk purchasing or long-term agreements for
better rates.
5. Automation
1. Invest in technology to automate repetitive tasks.
2. Use software solutions for budgeting and financial
tracking.
6. Employee Training
1. Train staff on cost management practices.
2. Encourage a culture of cost awareness and efficiency.
COST MANAGEMENT – OPTIMIZATION & TRACKING
Tracking Strategies

1. Regular Reporting:
1. Establish a routine for financial reporting (monthly,
quarterly).
2. Use dashboards to visualize key metrics.
2. Variance Analysis:
1. Compare actual spending against the budget and
analyze variances.
2. Investigate the reasons for discrepancies and adjust
accordingly.
3. Key Performance Indicators (KPIs):
1. Define KPIs related to costs, such as cost per unit or
operational expenses.
2. Monitor these KPIs to gauge performance.
COST MANAGEMENT – OPTIMIZATION & TRACKING
Tracking Strategies
4. Project Tracking.
• Use project management tools to track costs associated with
specific projects.
• Ensure that any overruns are addressed in real-time.
5. Regular Audits.
• Conduct internal audits to assess compliance with financial
policies.
• Identify areas for improvement and implement corrective
actions.
6. Feedback Loop:
• Create a feedback mechanism for stakeholders to share
insights on cost management.
• Use this information to refine processes continually.