About a week ago, I got a copy of Project Implementation Scheduling and Project Engineering from my boss. Since I thought this copy might be very important, I decided to learn and write that on this blog.
Before we learn how to make implementation schedule, we’d better understand the scope of project implementation. The project implementation phase embraces the period from start of commercial production. It includes a number of stages, including negotiation and contracting, project design, construction and start-up. If not planned properly, this phase may extend over enough time to endanger the potential profitability of the project. Implementation scheduling is primarily aimed to determine the financial implications of the implementation phase with a view to securing sufficient finance to float the project until and beyond the start of production.
Data and Activities
In arranging project implementation schedule, there are several factors that need to be taken into account:
- Establishment of project implementation management
- Arrangement for technology supply
- Detailed engineering of equipment, tendering, evaluation of bids, awards of contracts
- Detailed planning of civil works, tendering, evaluation of bids, awards of contracts
- Construction period (including purchase of land and supervision, coordination, testing and take over of equipment and civil works)
- Build up of administration, recruitment, and training of staff and labor
- Arrangements for supplies
- Arrangements for marketing
- Establishment of contacts with public authorities for timely approved of licences, contracts, etc
- Preliminary and capital issue expenses
Selection of Project Implementation Program and Time Schedule
- Select and describe in detail the optimum implementation program and time schedule, list activities, and show their sequence in bar diagrams (such as Gantt chart)
- State reason for selection
Cost Estimate of Project Implementation
Investment (land, technology, civil works, plant, and equipment) and production costs (material and labor inputs and overhead costs) are explained and estimated.
Notes on Project Implementation Scheduling
A realistic schedule should be drawn up for the various stages of the investment phase of project implementation. This is an essential part of the feasibility study and the implementation of every project must be related to a time-scale. Such a schedule should initially define the various implementation stages, such as negotiation and contracting, project formulation, and actual construction and running-in, in terms of time required for each stage. This comprehensive schedule should cover the entire investment phase, including the period between the investment decision and the end of the start-up stage.
Project implementation scheduling normally only covers the construction stage. Emphasis is, however, put on the fact that a considerable amount of time may elapse between the moment when the investment decision is taken and the actual start of construction. This period comprises tendering, opening of bids, evaluation of bids, final negotiation of technology, and award of contracts, and may take up to 12 months. In some rare cases, due to unforeseen delays, this period may be so long that the cost data given in the feasibility study become outdated and need to be reviewed. If a construction period of two or three years follows, the cost data taken for investment decision may be several years old by the time of the start-up. Thus continuous cost control both by way of projections and of gathering actual data, is required.