Urban Transportation System in India - Essay Example

1 Introduction Projects are undertaken at all levels in an organization or by a nation. Any project usually involves thousands of people and has several stakeholders. A project differs from operations because projects are temporary in nature and are primarily unique. They are unique because every project has some distinguishing characteristics from all similar or different projects. The characteristic temporary implies that every project has a definite beginning and a definite end. The end is achieved when the objectives of the project have been achieved. To successfully end or complete a project requires control over various functions and at different levels. This is known as managing a project or project management. Project management has been defined as “the application of knowledge skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from the project” (Duncan, 1996). In order to meet or exceed the stakeholder needs and expectations, project management balancing competing demands among, scope, time, costs and quality. Urban transportation system in most countries poses a challenge with the pace at which nations are developing. This is more prominent in the developing countries where the pace of growth is more rapid than the developed countries. Many developing nations have undertaken ambitious projects of constructing the metro rail or the underground railway system as the surface has become crowded with different types of transportation system. Such projects typically have cost and time overruns and are surrounded by litigations and objections from various stakeholders. In additions, the developing nations have numerous pressures from the political and economic set-up for additions and deletions of the proposed route. Factors like these lead to litigation and which are not usually provided in the project planning stage. These factors in turn are responsible for cost and time overruns. India has registered phenomenal growth in the last two decades but the urban transport system continues to pose challenges. Bangalore is one of the major metro cities in India which has been undergoing severe urban traffic congestion problem and urgent measures were adopted. Bangalore has been experiencing a combination of population, economic and spatial growth that has placed tremendous stress on the public infrastructure and services. Economic growth has led to rise in incomes and consequently more demand for road space as people opt for personalized motor vehicles. To reduce congestion, to address the issue of environmental degradation and to cater to the transport needs of people from all strata of the society, a metro or underground railway was recommended in Bangalore as early as 1982 but no final decision was taken until 2003. It is expected that the metro in Bangalore would finally be operations by the end of the year. 1.2 Rationale for research It has always been of interest to understand and study how a project evolves from the conception or the initiation stage and progress towards meeting its objectives. The metro rail project of Bangalore is particularly interesting because the idea has been conceived as early as 1982 and is yet to be operational. This implies that for the past 25 years the Bangalore metro has been a part of the urban transport strategy but it did not move ahead. In the meantime metros in Kolkata, Delhi and Chennai have become operational in India. Thus the objective of the research is: 1. To understand the Scope, Time, Cost, Quality, Human Resource, Procurement, Risk and Communication aspects of the Project. 2. To study the obstacles that hampered the progress of the project. 3. To study the changes that had to be incorporated over the years after the project was finally accepted for implementation. 1.3 Research Aim: The aim of the research is to gain insight into the management of a project, an attempt to provide an overview of how a Project Management Plan for a metro works. 1.4 Organization of the study 1.4.1 Introduction This chapter discusses the context of the study and states the aims and objectives of the research. 1.4.2 Research Method This chapter discusses how the research would be conducted and the justification for the methodology would be discussed. 1.4.3 Literature Review For this research no primary data will be collected. The entire research is based on the review of the literature related to project management, the theoretical aspects as well as the practical aspects of the project of the Bangalore metro rail. 1.4.4 Findings and discussion In the chapter the findings would be related to the theory reviewed from the Project Management Body of Knowledge (PMBOK). This would also help to understand to what extent the theories have been applied. 1.4.5 Conclusion This chapter contains a summary of the process and the findings. Recommendations based on the findings would suffice. 2.1 Research Philosophy Any theory is formulated based on a body of knowledge and this body of knowledge is found through research. Research process would depend upon the subject of study, the sample size, the context of the study and other factors. As such there are no predefined methods for research and hence no generalizations can be formed. 2.2. Research strategy The theory of PMBOK too has been based on some previous research. Based on these theories the current research would be conducted primarily through the existing literature and information available. Since the objective is to gain insight into how a project functions, it has not been considered necessary to collect primary data through interview or questionnaires. This research does not provide a full-fledged account of the various activities and functions but aims to highlight the principles of project management. 2.3 Research design While literature from some journal has been attempted for the theoretical framework and on Bangalore in particular, most of the literature on the metro rail project has been obtained by searching through Google and Yahoo. Attempts have been made to refer to data from the conception stage to get an overview of how the project evolved. 2.3 Justification for literature review Literature review itself is an integrative form of research that requires a great deal of skills and insight. Literature review helps to understand the context in which in was written or the period of study. Literature review also clarifies the contradictions if any, the changed trends and how the changes can be incorporated. Even in a project changes can ad do occur over a period if time which is not possible to be revealed by any single research. A critical review brings out the discrepancies, differences, deficiencies and omissions in the literature. According to Toracco (2005) critical analysis of the literature is a step towards increasing the knowledge base. Literature review further helps the researcher to understand the strengths and weakness of the existing studies. Thus the first stream of literature would deal with the features and characteristics of project management highlighting the importance of project management along with the team characteristics. The second stream of literature would give details of Bangalore city and its requirements of enhanced transport infrastructure. The third stream of literature would be the information search on the metro rail project concerned with the Scope, Time, Cost, Quality, Human Resource, Procurement, Risk and Communication aspects. Each of these would be related to the theory based on PMBOK. Most of the information gathered on the Bangalore metro rail project is based on the findings from the different search engines. The sources are reliable as the information has been collected from reputed dailies or journal. 2.4 Significance of the study Since the objective of the study is to have an overview of the project of metro rail, it is expected that the findings would help future projects to take into account areas which tend to be overlooked in the initial stages of a project. 3.1 Project Management Body Of Knowledge (PMBOK) 3.1.1 Background The PMBOK is an essential tool for the success of any project. It helps one to organize and optimize results in the shortest time. It involves five steps and each step is dependent upon the results of the previous step. These steps are generally applicable to most projects. The first step involves initiating the project itself – recognizing the need to start or commit oneself to the project. The core process includes sequencing the activities, resource planning and budgeting, apart from various other functions (Duncan, 1996). Sequencing activities involves planning again so that no step suffers because of incompletion of the previous step. The project life cycle consists of a number of key activities – defining the project objectives, formulation of the project plan, leading and monitoring plans for implementation, and project completion. Effective control and communication is another essential for the success of a project. Clear lines of authority should be defined so that conflicting priorities do not occur. This enables specific competencies to be developed and transfer of information across departments is easier. Each project has to pass through four phases – initiation, planning, execution and closure. Each phase has a number of activities to be completed. At the initiation stage the output and the critical success factors are defined. The approach to deliver the desired output is specified. The feasibility report is prepared and the project office is set up. The project manager is selected who selects his team based on the required skills and experience. Initiation stage is followed by the planning phase when the project is broken down into number of tasks. The different tasks include the project plan, the financial plan, the resource plan, quality plan, risk plan, acceptance plan, communications and procurement plan (Method123, 2003). This requires excellent interpersonal communication, and team motivation. The suppliers are identified and the tender profess is defined, the tender is issued and the supplier contract defined. The governance process is defined and the stakeholders identified. The reporting frequency and the channels are agreed upon. The most important activity in the project is to ensure the project is well executed and controlled. The planned solution is implemented to solve the problem specified in the project’s requirement. Design resulting is a specific set of product requirements is created. These are measured by the help of prototypes, testing and reviews. Groups across the organization become more deeply involved in the execution process and plan for the final planning, testing and support. In the closure stage the project manager has to ensure that the project is brought to proper completion. This phase is characterized by a written formal project review report containing a formal acceptance of the final product by the client, weighted critical measurements, rewarding the team members, learning outcomes, releasing of resources, and a notification of closure to the management. As Weinstein (2006) says, successful projects are the result of concentrated effort to control all the variables. Last-minute changes may occur but adaptability to change should be practiced. This involves realigning with project objectives and requirements with client’s satisfaction. The success of a project also depends on remaining within the budgets specified. Success is not just the efficiency of the project manager but requires dedicated teamwork. Communication is very important; it is not enough to give instructions of change; it is equally important to communicate why change is essential and how the change should be incorporated. 3.1.2 Characteristics of a team in a project A team has been defined as “an energetic group of people who are committed to achieving common objectives, who work well together and enjoy doing so, and who produce high-quality results” (Arthur, Wall & Halligan, 2003). In a team each individual contributes their knowledge or expertise to solving a jointly owned problem which no individual can solve on his own (McGreevy, 2006). In the highly competitive global marketplace project teams are formed to enable multiple perspectives, a variety of experiences and a broad skill set which has a bearing on the project (Hacker, 2000). Project teams are similar to teams where a set of people get together and have high degree of interdependence, aiming for a goal or completion of a task. Such teams are time limited and disband after the project is completed. Project teams are temporary and they collate individuals who contribute to a common goal. It is a unique group of individuals who work together in a controlled environment towards a common goal (Atkins & Gilbert, 2003). Project planning is the process of establishing the course of action within the prevailing environment to attain the predetermined objectives. A successful project is one that achieves the expected results (Hayes, 2000). A project team’s performance depends on timely performance within the budget, a concern for quality and technical issues (Bubshait & Farooq, 1999). A project team consists of multidisciplinary groups and misunderstandings are likely to arise from the inner workings of such groups. Barriers like different outlooks, priorities and interests, role conflicts, power struggles, and improper communication skills can undermine the team process and delay the task (Bubshait & Farooq, 1999). In providing service to clients, Atkins and Gilbert (2003) observe ill-prepared scope of works, inadequate communication, and complacency by both project teams and project managers. Such barriers and shortcomings can result in a false sense of security and confidence perceived by the client. This can be the consequence of lack of induction and training programs of the project team members. 3.1.3 Role of a project Manager (PM) The project manager (PM) should strategically formulate a plan for the project and he should be aware of the different planning techniques. Front-end planning has to be strong (Billows, 2004). Adaptability to change is another vital responsibility and the PM should be prepared should the project’s scope and budget change mid-way. The PM should invest time to develop quantified data about the 4 corners of the project – measured business value (MOS), budget, duration, and risk (Billows). While assigning tasks, it is also essential to discuss their expectations regarding meeting project deadlines. The objectives have to be clarified when specific tasks are assigned. Most projects can have unexpected situations. Hence planning and communication with teammates is essential (Schneider, 2001). Projects can move ahead on schedule for 80 percent of the work and then overconfidence steps and the project goes haywire. As the members try to rush through for completion, low quality output may result. Minute details should be built in the schedule right from the outset of the project so that the project runs smoothly. The group can then be realistic about what can or cannot be accomplished. In the turbulent environment things never go as per plan and hence it is essential to be flexible. The team members in a project should be geared to recognized and change direction when necessary. A PM’s leadership role would ensure commitment, which is vital to the success of any venture. The right environment has to be created for this (DeCarlo, 2005). A good PM would be able to establish good relationships and working arrangements with key stakeholders. He would be able to influence and lead without an authoritative attitude. He would also be required to negotiate for people, funds, and time. To derive the best from the team members, he would need to turn a disparate group into a functioning unit. The working environment that he creates should empower the team, which is motivating for the team members (DeCarlo). Communication is the essence of leadership and a PM should not only be able to effectively communicate with the team members, he should also be in a position to resolve interpersonal conflicts. Timely recognition of the team members urges them to put in their best. At the same time, goals for the team members should be reasonable and challenging. As Weinstein (2006) says, successful projects are the result of concentrated effort to control all the variables. As the project leader, communication is very important. It is not enough to give instructions of change; it is equally important to communicate why change is essential and how the change should be incorporated. Brown et al., (1964) quote from a Harvard Business Study that says that a successful team leader is one who “is able to communicate, make sound decisions, and to get things done with and through people” (cited by Barrett, 2006). Team participation would ensure commitment from people and individual scheduling conflicts can be easily resolved (Martin, 2001). It is the responsibility of the PM to ensure that each member in the project understands the consequences and risks of each action. This serves as a great motivational factor and the focus is on the outcome or success of the project. Organizations never analyze to determine how successful they have been relative to their objectives. Monitoring projects help to effectively manage and evaluate their performance. Project control is carried out poorly due to various reasons. 3.2 Bangalore Urban transport system Bangalore had 4.1 million people and 930,000 households on an area of 224 square km. another million people visit the area on a daily basis (World Bank, 2005). The population growth in India has been the highest in Bangalore for two reasons – high fertility and massive in-migration. Bangalore has become the center of India’s electronics and information technology, engineering, defense, higher education, consumer goods, and silk weaving. Migrants comprise of high skilled workers from different parts of India and abroad and in addition there are also job-seekers from the rural areas and the neighboring states. It was forecast that by 2011 Bangalore would have a population of 10 million people. While Bangalore has a mix of income groups living through out the area, there is some clustering of the low income groups at west, south-west and north-east peri-urban areas. During the growth boom as land prices rose, the low-income group people were pushed to outer locations. Urban transport in Bangalore is essentially road-based and comprises of motorized 2-wheelers and 3-wheel rickshaws. Conventional public transport services are provided by Bangalore Metropolitan Corporation (BMTC). BMTC operates buses in mixed traffic and the network is diffuse, trying to connect the maximum number of origins and destinations. The road system in Bangalore is underdeveloped and was laid out in the 1940s when the population was less than a million. The primary roads apart from the outer ring road are merely 25m wide. Seeing the dismal condition of the roads, traffic and road fatalities, combined with the growth in urban traffic, various studies were conducted to improve the urban transport system in Bangalore without much success. In 2003, a feasibility study was conducted by the Delhi Metro Rail Corporation at the request of the Government of Karnataka. The study suggested a 2-line metro, 18 km and 15 km in length, cross shaped, with station spacing of 1km on an average. Total costs at that time were forecast at Rs. 39.7 billion (US$0.83 billion) and with escalation and interest the total outlay estimated at Rs. 49.9 billion (US$ 1.04 billion) in 2003. When the system opened in 2008, it was expected to carry 820,000 passengers per day and by 2011 it would carry 1.02 million per day. Even the fares were chalked out at that time including the return on investment. The fare revenue was expected to cover more than the direct operating costs. 3.3 Bangalore Metro Rail Project 3.3.1 Scope and planning of the project This planning is laid out on a project charter, which apart from including a brief summary and history of the project also includes assumptions (Hayes, 2000). Assumptions are those conditions that are considered true, certain or real for planning process. The major assumptions have to be documented because they can have an impact on planning and estimating. It ensures that all members of the team understand the assumptions involved in project planning. Assumptions imply a degree of risk and planning for risk is an important part of the project planning. As per the PMBOK scope refers to the work that must be done in order to deliver a product with the specific features and functions. The scope of the Bangalore Metro Rail project detailed the corridors for the tracks, which was approved by the Government of India (GOI). The scope also included the total cost, taking into account the escalation factors and the financing of the project. The detail of the project that was approved by the GOI is as given below: Bangalore Metro rail Corporation Limited, then a wholly owned company of the Government of Karnataka (GOK) was made into a joint venture company of GOK and GoI by enhancing its authorized capital. The financing pattern was laid out and the two promoters were allotted equity shares in the new venture. The new Board had ten directors with each promoter nominating five directors. The Chairman of the Board is the Secretary, Ministry of Urban Development, GOI, the Managing Director was left to the discretion of the GOK but to be approved by the GOI. The details of the corridors that were approved by the GOI are as given below: Source: Bangalore-Metro (2006). In order to take care of obstacles and problems in connection with land acquisition, diversion of utilities, shifting of structures, rehabilitation of the project affected persons, a High Power Committee was appointed under the Chairmanship of Chief Secretary, GOK. Other members of the committee would include Secretaries of the concerned departments of the State Government, heads of civic bodies. 3.3.2 Time The timeline of activities to be followed is defined by the project schedule. The project schedule specifies the process and the timeline for delivering the project on schedule. The key objective of this schedule is to avoid slippage (WBDG, 2006). A comprehensive project schedule identifies the different stages of the project, all the phases and the activities assigned to each member of the team. It is then mapped to a timeline that measures key milestones (dates) essential to keep track of the work progress. Schedule management directly keeps track of the costs, timelines, and scope of the project and quality management. The team member roles and activities are defined, coordinated and continuously monitored. Any changes in the time line can adversely affect the costs. Even the fixed costs or one time costs increase with time like cost of rented equipments. The project’s cost effectiveness has to be evaluated taking into consideration the first cost, the cost-benefit and the lifecycle cost (WBDG). To control costs, continual systematic cost management has to be applied. This starts with the establishment of budgets that align with scope and quality requirements. It further goes on to milestone estimates, value engineering, procurement strategies, change order management, claim avoidance and negotiations. Very often changes in the project affect the costs, timelines and create schedule pressure. These changes increase the project cost. As corporate budgets tighten, the project mangers are asked to work within the original budgets sanctioned (Frederickson & Lasecke, 1994). The project managers thus need to identify in the planning stage itself the factors that can increase the cost of the project, evaluate the chances of these problems arising, and adapt the work plan accordingly. They must be able to anticipate the problems outside their control. This requires preparing an estimate based on historical project data and identifying factors leading to cost increases. The potential problems should be evaluated and if necessary, the estimates should be adjusted to plan for the problems. To keep within timelines of project and to keep schedules under control, a system should be developed which can automatically compile and capture real-time operating data and business forecasting data, measure progress against targets and key performance indicators. The preparation time for funding, resourcing and project-set up are included in the timelines for the project. There should be an automated system which would inform all stakeholders about changes and associated impacts, facilitate collaborative decisions for problem resolutions and deliver all supportive information to the right people. Prompt action should be taken to report variance and trends to project management (FIATECH, 2005). Most projects today are time critical if one has to remain ahead of competition. Projects require increased resources and have shorter schedules. Even though software tools are available, project control remains dependent on a leadership style that is outcome focused and not problem focused (Barber & Warn, 2006). In projects problems will always arise and deviation will occur but the firefighter approach has to be adopted – tackle the immediate problem. 3.3.3 Cost Project costs have to be measured and analyzed right from the planning and designing stage to bidding, construction, and turnover and beyond. Project costs can be direct or indirect. Direct costs include labor, material and equipment costs while the indirect costs are those that are necessary for the project but not direct (CMGT, n.d.). These include supervision cost, access roads, site office and overheads. Costs can be variable – related to time and quantity. Time related costs are directly proportional to time, usually linearly increasing with time. Cost of rented equipments, certain labor costs and site and overhead expenses keep increasing as the time of completion of project increases. There are also costs which are directly proportional to quantity as quantity increases costs increase. These include material costs and the equipment operation costs. Fixed costs are usually one time costs and include temporary fences, temporary access roads, which are indirect costs but this could also include direct costs like erection and dismantling of production equipment. The total project cost would include the direct, indirect, the fixed and the variable costs. Cost and time over runs are very common even if projects are completed. Inadequate strategic planning is often the reason. Before the project work begins, it has to be properly understood and agreed to by the project sponsors and the stakeholders. Lack of upfront planning with different stakeholders results in poor project control (Mochal, 2003a). If the major characteristics of the project are not defined properly there are bound to be differences in expectations. Projects start off with inadequate resources and time and control over project is lost as projects overshoot their budget and deadlines. The scope of the project has to be defined properly at the outset. A project cost estimate is prepared based on elements like the amount of work to be done, tasks to be completed and the number of review cycles. The actual costs of previous projects can be used as a guide to prepare estimates. After the preliminary estimate has been prepared, the circumstances of the project have to be reviewed and the facts identified that could lead to escalation of costs (Frederickson & Lasecke, 1994). If it is within control, plans should be altered accordingly but if it is beyond the control of the organization, then it is essential to analyze how the problem will affect the project. Project cost management according to PMBOK includes resource planning, cost estimating, budgeting and control. These processes interact with each other and may involve effort from one or more individuals based on the needs of the project. The table below gives the detailed cost structure of the Bangalore Metro rail project: Source: Bangalore-Metro (2006). 3.3.4 Quality 3.3.5 Human Resource 3.3.6 Procurement 3.3.6 Risk Projects have become complex and even the most efficient project manager overlooks unforeseen circumstances. Such oversight results in crisis. Unexpected events disrupt schedules and the project goes out of control of the project manager. A reactive manager would use all the software tools available to track and monitor progress but still risk planning has not been done. Managers do not give importance to risk management. They only perform a superficial examination to issues related to risk. Risk in projects is outside their control. Risks occur in projects due to lack of top management commitment to the project, failure to gain user commitment, misunderstanding the requirements, and failure to manage end user expectations (Cervone, 2006). 3.3.7 Communication Bad communication between relevant parties is a major cause of poor project control. Inadequate coordination of resources, lack of planning of scheduling, resources and activities, no quality control, mismanagement of progress, lack of project leadership, supplier skills stretched or not identified as per requirements lead to major upheavals in the project (Cortex, n.d.). The project manager loses control over the project especially if he has not involved the team right from the inception stage. Merely giving instructions is not enough. Management of progress may not be adequate and the right tools and techniques may not have been applied. All these factors cause poor control over the project. Read More