Delhi Metro Rail Project Management PDF

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Section A To be completed by the student Student Full Name SHAIKH AAMIR ALI Student ID Number EAU-0815463 Lecturer Name Mr. Paul Rouse Module Name and Code ECM28EKM - Project Management Assignment Due date 12th November, 2015 Assignment Title Management Of The Delhi Metro Rail Project SHAIKH AAMIR A...

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Delhi Metro Rail Project Management Aamir Ali

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Section A To be completed by the student Student Full Name SHAIKH AAMIR ALI Student ID Number

EAU-0815463

Lecturer Name

Mr. Paul Rouse

Module Name and Code

ECM28EKM - Project Management

Assignment Due date

12th November, 2015

Assignment Title

Management Of The Delhi Metro Rail Project

SHAIKH AAMIR ALI

MANAGEMENT OF THE DELHI METRO RAIL PROJECT PROJECT MANAGEMENT ASSIGNMENT BY SHAIKH AAMIR ALI EAU ID-0815463

WORD COUNT- 3090 WORDS

LIST OF TABLES

1. Work Breakdown Structures and Task Time Estimates for Delhi Metro Project

6

2. Risk Management Plan and Risk Register for Delhi Metro Rail Project

8

3. Estimates and Final Budgets for Delhi Metro Phases

9

4. Estimates of Costs and Revenues of Delhi Metro

10

LIST OF ABBREVIATIONS

1. DMRC - Delhi Metro Rail Corporation 2. GoI - Government of India 3. GNCTD - Government of National Capital Territory of Delhi 4. CPCC - Central Pollution Control Board 5. MoE&F - Ministry of Environment & Forests, Govt. of India 6. ASI - Archaeological Survey of India 7. JBIC - Japan Bank for International Corporation 8. INR- Indian Rupees

CONTENTS 1. Executive Summary

1

2. Introduction

2

3. Brief Background on the project

3

4. Management of Delhi Metro Rail Project

4

I.

The Project Life Cycle

4

Planning and Scope of the Delhi Metro Rail Project

4

III.

Stakeholder Management of the Delhi Metro Rail Project

6

IV.

Risk Management for the Delhi Metro Rail Project

7

V.

Budgets and Costing of the Delhi Metro Rail Project

9

VI.

Project Teams and Conflict

10

Project Review and Evaluation

10

II.

VII.

5. Conclusion

11

6. Recommendations

12

7. List of References

13

8. Appendix-I

14-16

1

EXECUTIVE SUMMARY The report summarizes the project management techniques initiated and applied during the execution of the Delhi Metro Rail Project by the assigned organizations. This report gives a brief explanation on the initiation, planning and covering the costs of the budget for the execution of the project. The report also describes what roles have been played by the organizations’ involved in the implementation of the project with their outcomes and conclusions. The Delhi Metro Rail Project has proved to be a great success in the recent times as it turned out to be a boon for the people of Delhi city.

2

INTRODUCTION Since 1991, The Indian economy has witnessed a rapid expansion and growth with the advent of economic liberalization in India. This led to the initiation of major infrastructure projects in India. With this, cities began to grow at a brisk pace as they provided a major share to the economy with people migrating from remote villages and towns in India looking for employment. Similarly, the city of Delhi also witnessed the same economic growth. With this, the population of Delhi also started increasing at an exponential rate. The increase in population of Delhi significantly led to the increase in number of vehicles running on the streets. The traffic movement witnessed slow pace due to increased number of vehicles leading to mass congestion. This congestion has resulted into people leaving their homes nearly 3 to 4 hours prior to the reporting time at their respective places in order to reach on time. The availability of public transport services like buses, taxis and auto-rickshaws have not matched to the ever-increasing levels of demands of the general public for their convenience in travelling to their workplaces. The traffic on the roads of Delhi sees a heterogeneous mix of auto-rickshaws, private cars, buses, motorcycles, scooters, etc. pushing against each other and has resulted into a very chaotic situation of the roads leading to increase in accidents which sometimes prove to be fatal, wastage of fuel by stop-start progression of vehicles and even in environmental pollution that has caused deterioration in quality of air in Delhi (Singh 2013: 8). In view of these ever-increasing demands for transportation facilities by the people of Delhi, The Government of India (GoI) and the Government of National Capital Territory of Delhi (GNCTD) set-up a joint-venture with equal partnership named as Delhi Metro Corporation Ltd., (DMRC) in order to initiate and execute a potential world-class, passenger-friendly and eco-friendly Mass-Rapid-Transit System known as the Delhi Metro Rail Project. (Singh 2013: 9). The Delhi Metro Rail Project is the first of the mass rapid transit systems to be initiated and executed in India with modern-day technology and world-class features. It is designed to be a potential self-sufficient transport system and more importantly an alternative means of transport for the people of Delhi in order to reduce traffic congestion on the streets.

3

BACKGROUND ON DELHI METRO RAIL PROJECT The increasing number of vehicles on the streets of Delhi has led to long-term traffic jams causing slow movement of traffic. So the concept of mass rapid transit system was initiated to address and solve the woes of urban traffic on the streets of Delhi known as Delhi Metro Rail Project. The Delhi Metro Rail Project is one of the world-class Mass Rapid Transit (MRT) systems in modern times. The Delhi Metro Rail Project is one of the busiest mass rapid transit systems in the recent times matching to the standards of busy mass rapid transit systems set by the New York “Subway”, the London “Tube”, etc. The Delhi Metro Rail Corporation Ltd, (DMRC) was the organization that was assigned for the planning, implementation and delivery of the project. It was set up as a joint venture between Government of India (GoI) and Government of National Capital Territory of Delhi (GNCTD) (Singh 2013: 9). DMRC did a background study in order to address the woes of Delhi’s urban traffic and examined the viability of various mass rapid transit systems around the world in order to execute the project (Singh 2013: 10). Under the competent leadership of E. Sreedharan, M.D., DMRC, the construction of the metro began in 1998 and within a span of four years, the construction of the first route of Delhi Metro got completed in record time and the operations had commenced by the end of 2002. The Delhi Metro Rail Project is planned to be built in phases not only covering the city of Delhi but also connecting nearby cities of Gurgaon, Noida, Ghaziabad and Faridabad with metro trains within a span of 20 years with each phase was projected to be completed in 5 years. The completion of one phase was designed to be set as a benchmark for the commencement of targeting the next phase (Singh 2013: 10).

4

MANAGEMENT OF DELHI METRO RAIL PROJECT Project activities are performed and enacted by an organization order to achieve its planned objectives. Projects have a definite beginning start and finish time periods which makes it different from operations which are repetitive. Projects are defined as activities with a predefined start and end time in order to deliver a distinctive outcome (Project Management Institute 2000: 3). Project management involves a results-focused management style depending upon building strategic partnerships among heterogeneous mix of people (Larson and Gray 2011 5th Edn: 3).

I.

The Project Life Cycle

Since the Delhi Metro Rail Project was a construction-based project, the project life-cycle is represented by the following (Project Management Institute 2000: 14)i.

Feasibility- project formulation, feasibility studies, and strategy design and approval. A go or nogo decision is made at the end of this phase.

ii.

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.

iii.

Construction- manufacturing, delivery, civil works, installation, and testing. The facility is substantially complete at the end of this phase.

iv.

Turnover and Start-up- final testing and maintenance. The facility is in full operation at the end of this phase.

II.

Planning and Scope of the Delhi Metro Rail Project

No project starts without a definite plan. Planning the project is a vital part in project management as it sets a benchmark for setting up the executional methods for the project. It points out the objectives of what the project will achieve when accomplished and how the project will be completed. Planning process is a mandatory process in project management as poorly planned projects leads to catastrophic outcomes such as projects getting stalled for longer periods of time, projects getting officially cancelled midway after initiation, etc. There are four basic reasons for project planning which as follows (Kerzner 2009 10th Edn: 414):i.

To eliminate or reduce uncertainty.

ii.

To improve efficiency of the operation.

iii.

To obtain a better understanding of the objectives.

iv.

To provide a basis for monitoring and controlling work.

Many projects in India are put on hold or remain stalled for years due to corrupt political influence, nepotistic and obsequious work culture within the organization, mismanagement of resources and exaggerated costs due to high level embezzlement at various stages of project management leading to scandalous outcomes (Prasad and Govind 2006 : 6). Similarly, to execute a state-of-the-art mass rapid transit system in the city of Delhi, extensive planning was required by the DMRC keeping in view to deny any chance of corruption or misallocation of funds to prosper at any stage of project management. The DMRC had their objectives well set-out to address the issues regarding the implementation of the project.

The DMRC planned the Delhi Metro Rail Project in order to meet the following objectives:i.

To deliver a state-of-the-art mass rapid transit system in the city of Delhi for easy commuting to places which are inaccessible while travelling by roads.

ii.

Reduction in number of usage of vehicles for short trips.

iii.

Convenience in movement of traffic on busy streets.

The work breakdown structures and task time estimates for the Delhi Metro Rail Project are described by the following table (Refer next page)-

6

i.

ii.

Task Name Preparation of feasibility report by DMRC and approval of project from the government. Bidding and election of companies for construction of the metro routes.

Start Date 05-Jun-1989

Finish Date 08-Jul-1995

Duration 2224 days

20-Aug-1995

12-Oct-1996

419 days

iii.

Bidding and nomination of companies for supply of rolling stock.

13-Dec-1996

15-Feb-1997

64 days

iv.

Bidding of funding agencies and budgetset-up with allocation of resources.

10-Mar-1997

25-Apr-1998

411 days

v.

Construction and opening of metro routes of Phase I Testing and inspection of trains and stations along the metro routes of Phase I

17-Aug-1998

19-May-2005

2467 days

24-Sep-2001

16-Jan-2005

1210 days

Hiring and training of staff for Phase I metro routes Construction and opening of metro routes of Phase II Testing and inspection of trains and stations along the metro routes of Phase II Hiring and training of staff for Phase II metro routes Construction and opening of metro routes of Phase III & Phase IV. Testing and inspection of trains and stations along the metro routes of Phase III & IV.

18-Jul-2000

14-Sep-2004

1519 days

22-Aug-2002

30-Dec-2009

2687 days

30-Jan-2006

20-Jun-2009

1237 days

15-Mar-2004

27-Oct-2008

1687 days

21-Aug-2007

29-Nov-2021

5214 days

19-May-2012

22-July-2021

3351 days

5-Oct-2008

8-Apr-2020

4203 days

vi.

vii.

viii.

ix.

x.

xi.

xii.

xiii.

Hiring and training of staff for Phase III& IV metro routes.

Table 1 - Work Breakdown Structures and Task Time Estimates for Delhi Metro Project

III.

Stakeholder Management of the Delhi Metro Rail Project

The people who influence and collaborate into the activity of project management are known as

7

Stakeholders. The process of classifying, analyzing and managing the influences of the stakeholders is known as stakeholder management. In the case of Delhi Metro Rail Project, there were many stakeholders that were to be addressed by the DMRC. The stakeholders were the construction companies who collaborated as contractors, funding agencies, governments and the general public. On consultations the contractors, the DMRC ensured that the problems at the project-affected roads would be solved by construction of new roads and widening of existing roads so that there would be smooth movement of traffic during construction. The DMRC also ensured that the mandatory clearances and permits required from the concerned organizations and bodies would be received without any hassles and through effective communication so that it does not face any legal issues by them. DMRC set a high safety standards so that the extent of damages would prove less fatal in case of accidents. Engineering projects might bring a large-scale impact on various environmental components like air, water, land, ecology, etc. (Smith et al. 2002 2nd Edn: 59). In view of that the project execution does not hamper the environment of Delhi, the DMRC assessed the impacts of construction with updated soil tests, plantation of trees near to the metro stations, reducing noise, air and water pollution levels and they submitted timely reports to the Central Pollution Control Board (CPCC) and the Ministry of Environment & Forests (MoE&F), Govt. of India. The DMRC also gave assurance to the Archaeological Survey of India (ASI) that the construction work through the heritage monuments of Delhi like the India Gate, Qutub Minar, etc. would not be affected. Since the Delhi Metro Rail Project was constructed with the funds allocated by the Japan Bank for International Corporation (JBIC) since it was the main funding agency. The DMRC maintained a good collaborative partnership with the officials of JBIC as they invited them for inaugurating various metro sections as a friendly gesture (Prasad and Govind 2006: 11). The project was completed within the budget with effective management of resources.

IV.

Risk Management for the Delhi Metro Rail Project

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. Managing risks is of utmost importance as occurrence of risks hamper the implementation of the project and thereby leads to cancellation or failure of projects. The DMRC processed the following Risk Management Plan and Risk Register for assessing and overcoming the imminent risks with indicative colors Red as High Level Risk, Yellow as Medium Level Risk and Green as Low Level Risk (Refer Next Page)-

8

Risk

Likelihood of Risk

Consequen ce of Risk

1) Delay in approval of project report.

Low

High

High

2) Conflict with the foreign infrastructure companies. 3) Disputes during Land Acquisition.

Low

High

High

High

High

High

4) Disasters like floods, earthquake, etc.

Low

High

High

5) Delay in allocation of funds.

Low

High

High

6) Technical snag during operations.

Low

Medium

Medium

7) Unforeseen circumstances such as accidents during construction, labour agitation, heavy rains or terror attacks.

Low

High

High

Medium

High

High

8) Environmental Hazards during construction.

Risk Level

Risk Mitigation Measures Need To be Undertaken

Likelihood of Risk After Mitigation

Consequence of Risk After Mitigation

1) To make the officials of Government of India understand and review the project report carefully. 1) Assuring the companies that their investment is secure. 1) Paying the concerned organizations for using the land on lease. 2) Paying the government the revenues for the land. 1) Studying the seismic and flood occurrence reports and taking preventive steps. 1) Timely paying the shares and interests of the concerned organizations. 1) Periodic inspection of trains, electronic equipment, overhead wires and tracks. 1) Stalling construction work during heavy rains. 2) Negotiating with the labour demands 3) Having insurance cover for paying up for damages by accidents. 4) Deploying toplevel security personnel at metrorelated places 1) Publishing and review of the environmental impact assessment reports and taking environmentfriendly steps

Low

Low

Low

Low

Low

Low

Low

Medium

Medium

Low

Medium

Medium

Low

Medium

Medium

Low

Low

Low

Low

Low

Low

Low

Medium

Medium

Table 2 - Risk Management Plan and Risk Register for Delhi Metro Rail Project

Risk Level

9

V.

Budgets and Costing of the Delhi Metro Rail Project

Financing is the prerequisite for the projects without which projects do not proceed further. The nature and the amount of finance required varies significantly throughout different stages of projects (Smith et al. 2002 2nd Edn: 89). Since the Delhi Metro Rail Project is a joint-venture, it was financed by the following means:i.

32% cost of the project were financed by the Government of India (GoI) and Government of National Capital Territory of Delhi (GNCTD).

ii.

54% cost of the project were financed through the loans from Japan Bank f...