Project Management – DMRC Experience_1_

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					           Delhi Metro
A Project Management Bench Mark
                Presentation
                    By

               Kumar Keshav
    Director (Project &Planning), DMRC

              23rd June, 2011
    Delhi Metro Rail Corporation (DMRC)

• Set up in May’95 under the Indian Companies
  Act.

• A joint   venture    between the Federal
  Government of India and the Provincial
  Government of Delhi State, with equal equity.

• DMRC has the responsibility for construction
  and operation of Delhi Metro.



                                             2
                   Delhi Metro Rail Corporation (DMRC)


• A Master Plan had been drawn up for Delhi Metro
  expansion, consisting of 12 lines, covering 420
  kms. to be completed by 2021 in four Phases.

• Works started on Phase I on 1st October, 1998 and
  completed in December, 2005.

• Phase-I – 65 kms. Cost US $ 2.5 billion. Completed in 7
  years and 3 months (2 years & 9 months ahead of
  schedule)


                                                      3
                            Delhi Metro Rail Corporation (DMRC)


• Phase-II covers 124 kms. This also includes a high
  speed Metro connection from centre of the city to
  the new airport in 18 minutes.


  Phase-II works commenced in January 2006 and
  completed in October, 2010 – 5 months ahead of
  schedule.


• Phase-III will consist of about 104 km at a cost of
  US $ 8.6 billion. The first contract for Phase-III has
  since been awarded.
                                                              4
           Funding of the Metro

– 20% of the cost is borne by the Federal Government.
– 20% of the cost is borne by the State Government.
– About 50 – 60% of the cost through JICA Loan.
– 5% of the cost      by   DMRC    through   Property
  Development.




                                                      5
              Operation Highlights
• 2500 train trips with 200 train sets on 6 lines.
• Each train used to consist of 4 coaches. Trains
  progressively being lengthened to 6 coaches and
  finally to 8 coaches.
• Average daily ridership - About 16.5 lakh
  passengers with average lead of 14 kms.
• Frequency during peak hours – 2 m 30 sec.
• System        fully Barrier Free for Physically
  challenged.
• DMRC has introduced feeder bus short loop services
• Punctuality measured with a least count of 60 Sec.
  and average punctuality percentage is above 99%.
                                                       6
        Financial Success of Delhi Metro
• Fare : From Rs. 8/- (17 cents) to Rs. 30/- (65 cents) -
  fare structure lowest in the world except Kolkata.
• The system making operational profit from Day-1.
• Delhi Metro receives no subsidy from the two
  Governments.
• We are able to meet the operating and maintenance
  expenditure fully.
• In addition we are servicing and repaying the loans
  taken from JICA.
• 20% of DMRC’s revenue is from Non-operational
  sources – mainly real estate development and
  advertisements.

                                                      7
      Challenges in Implementation
• Delhi Metro Project is the biggest urban intervention
  since Independence.
• Project is to be executed in very difficult urban
  environment.
• Being in the capital city all actions under close
  scrutiny of VVIPs.
• Project approved on completion cost.
• The Project implementation period extremely
  compressed and strict completion targets.
• Metro being constructed to world class standards with
  frontline technologies.
                                        Challenges


• The sensitivities of the city to be respected during
  construction – No hardship or inconvenience to
  the public – Calcutta Experience.
• Each day’s delay in completion of project costs
  DMRC Rs. 2.3 Cr (Rs. 1.4 Cr by way of escalation
  and Rs.90 lakh by loss of revenues).
      Constraints in Project Implementation
• Large scale land acquisition in the city

• Tree cutting permission
     - Substantial No. of trees are transplanted.
      - For every tree cut, compulsory afforestation of 10
               trees is undertaken.

• Utility diversions for Telecom, Electrical, Sewerage &
  Water pipe lines

• Special permissions such as for Ridge (Reserve
  Forest) Land, from Archaeological Survey of India ,
  National Monument Authority
How Challenges have been met
Work Culture & Organizational Values of DMRC
1. Punctuality.
2. Integrity – highest premium
3. Professional Competence.
4. Physical Fitness.
5. Quick Decision Making
6. High Discipline and loyalty to the Organization.
7. Prompt response to the needs of the Public
   and Contractors.
 Dynamic Management Style
• Corporate Mission and Corporate Culture
• A slim but effective organization - No ineffective
  layers such as clerks, peons
• Reverse Time clocks.
• Democracy in management – Weekly HOD
  meetings and Monthly Dy. HOD meetings.
• Discourage paper oriented work – replies to
  outsiders within 10 days.
• Predominant use of information systems.
• High premium for integrity in the organisation
                          Dynamic Management Style
•   Ample delegation of powers – accountability with
    delegation
•   Redefined the role of Finance – Finance equally
    accountable with executive.
•   Officers encouraged to take decisions on the spot.
•   The fear of Audit and Vigilance not allowed to cramp
    the style.
•   Leading from the front and not pushing from the rear.
    - Top Management readily available for decisions.

Management based on trust
Project Monitoring at all Stages
           Tendering & Award of work
• General philosophy – success of the project depends
  upon success of the contractors.
• Tenders from Pre-qualified list of bidders
• A unique filtering criterion evolved for prequalification
  covering vital items of technical & financial capabilities
  of the tenderers
• Objective evaluation criteria based on ‘scoring system’
• The tender conditions finalized keeping in view the JBIC
  Procurement guidelines, FIDIC document and Indian
  Contract Act .
• Full powers for dealing with the tenders within organization
• Tenders are decided fast – so that no lobbying is
  possible.
      Monitoring during execution
• Contractors prepare detailed Base – line work
  schedule for execution including duration of
  activities and identification of critical activities/path
• Close monitoring of work schedule, mobilization
  of ‘Manpower’, ‘Machinery & Plant’ and ‘Materials’
• Weakly meetings with Contractors for planning
  the work and solving their problems.
• Practical approach to solve the genuine problems
  of contractors.
• Failing contractors are enabled to perform by
  timely assistance.
• Streamlined prompt payment procedure and
  quick decision-making.
                            Monitoring during execution

• Stringent penalties for failures to deliver.
• Prompt resolution of claims.
• Round the clock supervision guaranteed
• Strict independent quality & safety audit.
• Monthly progress presentations by the
  contractors
• DMRC directly handles works pertaining to other
  Government and Civic Departments to speed up.

Have been able to establish that we are different
than the normal executing agencies and mean
business.
Interface Management
• Interface Management
         - “Access dates” and “Key dates” listed in
             contract document itself.

• The important items which require interface with other
  contractors are clearly identified and indicated in
  contracts.
• Other contractors with whom the contractor has to
  interface are also clearly defined.
Monitoring during Testing & Commissioning

 • Each activity of testing identified and duration of
   all these activities pre-determined

 • Trials conducted as per schedule pre-determined
   jointly by System Contracts

 • Service trial schedules also laid out in advance

 • Sufficient time provided before actual
   commissioning
     Training and motivation of employees
– A rigid screening process for inducting staff and
  officers.
– Training and exposure in the appropriate areas.
– Management objectives and philosophy clearly
  shared with executives and staff.
– Chief Executive and Top Managers themselves set
  an examples.
– Immediate appreciation and reward for good work
  done but no castigation for failures.
– No witch hunting for genuine mistakes.
Officers encouraged to take quick decisions . Tendency to
push decisions to higher levels curbed.
 Public relations initiative
– Works planned and managed with the least
  inconvenience to the public.
– Press regularly briefed on the progress and
  programmes.
– Community interaction at difficult work sites.
– Proper barricading and good house keeping.
– Proper signages, security men to guide traffic.
– Special measures taken to protect the environment.
        • Control on noise levels and vibrations during
          work.
        • Washing tyres of vehicles.
Performance is our best publicity. Have been able
to establish credibility with the public by delivery
on time.
             Benefits of Delhi Metro
• A study by CRRI has brought out benefits of Delhi
  Metro Phase-I and worked out EIRR = 19.96%.

Thus the entire cost of Phase-I recovered by the city
of Delhi in 5yrs by 2010.
DMRC: An organisation with a
difference…..
                       Thanks

DMRC Ltd.
Metro Bhawan,
Fire Brigade Lane,
Barakhamba Road,
New Delhi - 110 001.
                                                   `




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                                                       LAL QUILA




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                                                         DELHI GATE




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