Project Monitoring

Project Monitoring Project monitoring is an integral part of the project management. It provides understanding of the progress of the project so that appropriate corrective actions can be taken when the performance deviates significantly from the planned path. It consists of regular systematic collection and analysis of information to track the progress of the project implementation against pre-set targets and objectives. It is an important management tool which, if used properly, provides continuous feedback on the project implementation progress as well assists in the identification of potential successes and constraints to facilitate timely decisions. Effective monitoring of the project is a critical element of good project management. It supports informed and timely decision making by the management and provides accountability for achieving results. It is a key part of project cycle management. It is to be built into the project at the planning stage. It is not an ‘add on’ tool which can be used during mid-way of the project implementation. On the other hand, it is to be woven throughout the project. Project monitoring clarifies project objectives, links activities and their resources to objectives, translates objectives into performance indicators and sets targets, routinely collects data on these indicators, compares actual results with targets, and reports progress to the management and alerts the management about the problems which frequently gets cropped up during the implementation of the project. It provides information to the management whether the project is proceeding as per schedule relative to the targets or there is time over run in the project implementation. It also focuses, in particular, on the efficiency and the use of resources during the project implementation. It provides support to the management in its efforts to complete the project in time and within the budget. Project monitoring...

Structural Steel – Preferred Material for Construction...

Structural Steel – Preferred Material for Construction Structural steel is not just a material which has only the technical competence. It has many other qualities that make it the preferred material for architects, designers and engineers. It is economical and provides great mechanical functionality; it permits the design of structures which are graceful, light and airy; it streamlines construction site processes; and it offers rapid execution. A major advantage, however, is the infinite freedom for creation which it provides to the architects, designers and engineers. The combination of structural steel with different materials lends themselves to rich and varied types of construction. When combined with glass, structural steel makes fabulous use of light and space. Structural steel is the material ‘par excellence’ when it comes to inventing new structures and forms. All solutions are possible, from the very simplest to the most challenging. Structural steel can be used for small buildings as well as large structures, for routine construction projects, and those subject to complex urban constraints. No other material is used to make structures which are so thin, light and airy. Forms can be created using different structural effects and envelopes with pure or finely sculpted curves. Architects, designers and engineers can give free reign to their imagination and creativity with structural steels. Structural steel is a standard construction material made from specific steel grades and is available in standard cross sectional shapes. This steel exhibits desirable physical properties such as strength, uniformity of properties, light weight and ease of use etc. This makes it one of the most versatile structural materials in use. Major applications for this steel is in high rise and tall multi-storey buildings, industrial buildings, towers, tunnels, bridges, road barriers, and industrial structures etc. Within the overall architectural concept,...

Purchase Management

Purchase Management  Materials today are lifeblood of industry. They must be available at the proper time, in the proper quantity , at the proper place, and at the proper price. Purchasing is the function of buying materials and services from external sources in an organization. It is one of  the most critical functions as it provides the input materials to the organization for converting it into output products. Purchase management is the management of the purchase and procurement process and related aspects in the organization. Purchase department buys raw materials, equipment, spare parts, consumables, and services etc. as required by the organization and hence purchase department has a very important role in the functioning of the organization. Purchase activity is one of the most crucial activity in the organization and needs an effective management. It is the main activity in the area of material management. Often procurement and purchasing are used as synonym to each other. Procurement is used to define one of several supply functions involved in logistics activities. In the broadest sense procurement includes the entire process by which all classes of resources (people, materials, facilities and services) for the organization are obtained. Since purchasing is a unique function, it differs a bit from procurement in the sense that while procurement, with the same objective has a wider domain , purchasing with the same objective is included in it. In a manufacturing  organization, purchase is the first element which affects the product cost and hence has a big impact on the organizational profit. The organization needs an efficient and economic purchasing and procurement of its various supplies of materials from the suppliers. The purchase department which performs the function of purchasing and procurement of the materials is to function very efficiently. Purchasing is no doubt a vast and complex...

The Process of Annual Budget Preparation...

The Process of Annual Budget Preparation  Annual budget for an organization is prepared for a year and is a comprehensive plan, a coordinated set of detailed financial statement of operating plans and schedule. It is the organization’s formal plan of action for the budgeted period. Annual budget is the best document for understanding the micro economics of the organization for the forthcoming budgeted period. Departmental budgets are the basis for the organization’s annual budget since it incorporates all the department’s budgets. It finally takes the shape of projected profit and loss statement and the balance sheet at the end of the budget period. It incorporates all the operating and the financial decisions. In the budgeting process, the annual budget provides a single map explaining how the organization intends to earn profits and positive cash flow for the coming period. It also helps different departments of the organization to coordinate their activities so that together they can meet the overall goals and objectives of the organization in the budgeted period. In an organization preparation of an annual budget is a daunting yet extremely important task. By definition, preparing the budget entails hard choices. These can be made, at a cost, or avoided, at a far greater cost. It is important that the necessary trade-offs be made explicitly when formulating the budget. This will permit a smooth implementation of priority programs, and avoid disrupting program management during budget execution. The annual budget is a comprehensive planning document that incorporates several other individual budgets. The annual budget is usually classified into two individual budgets namely the operational budget and the financial budget. The annual budget formulation process has the following four major dimensions. To set up of the fiscal targets and level of expenditures compatible with targets....

Steel industry and cost control...

  Steel industry and cost control  The cost control process in a steel plant is a multivariate system which is subjected to a large number of inter- influencing variables affecting the cost performance of the steel plant. It is necessary to isolate the inter influence of the variables to understand the role played by the each variable on the cost performance of the steel plant. Major variables affecting the cost performance of a steel plant are discussed below. Productivity – It is the specific rate of production. Higher is the productivity of the units of a steel plant, lower will be the cost of production. Higher productivity results in better utilization of plant and machinery. Production – Production is the physical output from a unit. For good cost control, it is necessary that each unit of the steel plant should run to its maximum capacity. When production from a unit is lower than its capacity then there is an increase in the specific consumption levels. Also when any unit is underutilized then it will result into higher fixed cost (over heads, depreciation, interest etc.) per unit output. Further It is needed that the capacity of each succeeding unit should match with the preceding unit so that there is no under utilization of any unit. Raw materials – In the present day scenario, raw materials contribute to major cost of production. Hence specific consumption of the raw material should not be more than what is required by the technology employed. Any wastage of raw materials and their deterioration during storage should be totally avoided. Further raw material quality plays very important role in cost control. Lower quality raw materials though cheaper per ton results into higher consumption of not only of its own but also of other raw...