Delhi Metro A Project Management Bench Mark

1
Delhi Metro A Project Management Bench Mark

• Presentation
• By
• Kumar Keshav
• Director (Project Planning), DMRC
• 23rd June, 2011

2
Delhi Metro Rail Corporation (DMRC)

• Set up in May95 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.

3
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)

4

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.

5
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.

6
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.

7
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 DMRCs revenue is from Non-operational
  sources mainly real estate development and
  advertisements.

8
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.

9
Challenges

• The sensitivities of the city to be respected
  during construction No hardship or
  inconvenience to the public Calcutta
  Experience.
• Each days 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).

10
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

11
How Challenges have been met
12
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.

13
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

14
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

15
Project Monitoring at all Stages
16
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.

17
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.

18
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.

19
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.

20
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

21
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.

22
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.

23
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.

24
DMRC An organisation with a difference..
25
Thanks
DMRC Ltd. Metro Bhawan, Fire Brigade
Lane, Barakhamba Road, New Delhi - 110 001.
26
(No Transcript)