Central Gas

Planning Methodology

A properly planned site does require minimum monitoring & a properly monitored site fetches good productivity and enhanced output

total information system

The total information system is centered on micro level estimation of cost at the elemental level, translating the contract amount to minute elemental level costs for costing and budgeting which would be later on used as the control measure


To facilitate such detailed costing necessary data has to be built up over the years on various types of job, various location, various environment etc

control mechanism

the control mechanism is built on a 2- tire system for the site itself via, work break down structures(WBS) which are controlled by operation manager (as they may be called)and work package( WP) which form part and parcel of WBC(EQ)In a site different systems, which could be separately traced and distinctly identified, would be called as different WBS .For each WBS there would be one man in charge(operation manager )and he would be held responsible for the cost of pertaining to the WBS. The system is through up feedback information regarding a particular type of work incidentally.

work packages

When it comes to work packages, a group of packages would form a WBS. Work package would comprise of work relating to a homogeneous group

activities of a WBS and hence would also helping the process of proper estimation for future job


The estimation is done for the following, categories of cost, which would be called as sub head of expenditure Direct labor

  • Support staff/ supervisory man power(called as contractors staff)
  • Construction equipment /aids
  • Temporary facilities (such as site office)
  • Temporary materials(wooden plank ,piping etc)
  • Erection tools
  • Consumables
  • Mobilization and de mobilization(travel &transport for men &machinery)
  • Insurance
  • Ancillary
  • Material handling
  • Commissioning assistance
  • Any other supply


After completing estimation in great detail, as listed in previous paragraphs, the senior manager person does the budgeting. Budget is broken into three levels via estimators, managers and corporate level budget. The corporate budget is the stripped down version of the overall estimation. The manager budget is a sub-set of the corporate budget without the head office over head inclusive of contingency. The estimators budget forms part of the managers budget but is devoid of any provisions of contingency. After the budgeting process costing is done .while the estimation and the budget are according to the heads of expenditures given in the paragraph on estimation, the costing is based on WBS, W.P and heads the expenditure (sub codes). This means that for each WBS, cost with respect to every head of expenditure is arrived at. Such an exercise is done for every single WBS. The total cost of all WBS would be equivalent to the total budgeted amount. The total budgeted amount could also be broken into different heads of expenditure by adding the values of different WBS. Thus there would be a total picture of cost looking at it from either the WBS angle or from the head of expenditure angle. Work packages are very small and are nothing but miniature of WBS in concept


The various activities in the project are fitted into the overall time schedule in terms of different months. The requirement of manpower for each of the categories is estimated on the basis of assumptions made at the estimation stage in terms of manpower and the time frame as decided. The manpower schedule is drawn in terms of each category of manpower on the frame. The charging of manpower is done to the respective WBS.

The starting point is the overall schedules, which is given by the client, and this is split up into weekly fortnightly and monthly schedules.


The direct labor, which generally has more percentage contribution, requires close monitoring. This shall be monitored for each WBS and WP. Also the information forms basis to compute:

  • Efficiency of manpower
  • Composition of trades
  • Costing of future projects


One method of progress measurement is based on billing value. Billing is done based on agreed milestones. The primary input for billing is only the total man hours deployed.
Projects are divided into two categories- labor oriented and equipment oriented. For the purpose of such a categorization ,the total cost as estimated and budgeted for labor and rest of the components is compared and if labor outweighs the other components, it is termed as labor oriented and vice versa. The ratio of this comparison is used as a weighing factor for estimating the progress.

There can be other methods of progress measurement also depending upon clients agreement.


Inventory control is exercised at the level of WBS, based on monthly reports .based o value and life, an item is categorized either asset or inventories .control is exercised on inventory items and charged 100% to the project. Ac regards assets 100% value is charged the project but the salvage value is also taken into account at the end of the project depending on whether it is sent to another project or disposed off etc

Control on certain categories of consumables like the electrode requires systematic analysis of theoretical requirements and comparison with actual requirements.


Knowledge of contract is essential for everyone. However there should be a designated engineer of contract who is authorized to study and point out deviations of jobs in site


All construction aids / equipment are analyzed with respect to there utilization and this utilization factor is recorded as measurement of the extent to which the equipment is utilized in comparison to the total hours for which it has been made available at site also the fuel used is recorded for proper monitoring which forms as basis for future project estimation.


The permanent materials should be segregated based on WBS and WP and also should be stored in yard accordingly. This will eliminate double handling of material thus saving manpower and machine hours.


The drawings used should be approved for construction drawing. This depends on the method of drawing issue by client segregation of drawings based on WBS, WP and also relevant materials in advance based on master drawings list has to be done.

This will enable to project the problem areas while monitoring whether it is material or drawing related problem.


Day-to-day recording of weather is also carried out and reported on monthly basis. This information is used primarily to analyze shortfalls in productivity and progress. Also it is used for time extension against liquidated damage.