Transcript Project Management – DMRC Experience

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.
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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)
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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.
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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
Development.
by
DMRC
through
Property
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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%.
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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.
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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
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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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DELHI GATE
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