Book highlighted in the book is that even

Book
Introduction

The major story of this book revolves around three
young engineers and a professor who is Mr. Silver. The three engineers are
assigned a task of reducing a modem’s manufacturing time. They then go on to
join an executive MBA course. Rick Silver is an excellent professor but is in
need of tenure and his major area of expertise is project management and he
wants to make a major difference in this field.

A major problem highlighted in the book is that even
though the principles of project management are applied on various sets of
projects such as manufacturing, construction etc. but still the projects are
getting delayed. There are lots of budget and time overruns. In order to
overcome these challenges quality is being compromised. There are various other
reasons for project delays such as unforeseeable conditions and bad weather.

Then a typical corporate life has been explained by
just a simple sentence which says that the lower the level of the person in an
organization, more fingers tend to point out at him internally rather than
externally.

Then another story has been explained in which three
people Bernard, BJ van broun and Alistair are concerned with the quickly
changing education system as all of them have large business schools. They
focus on various other courses rather than MBA because according to their
analysis supply is much more than the demand. For an efficient business school
there should be more focus on reputation because according to them ‘ REPUTATION
IS MUST’.

Core
idea of the book

Basic Chain is a business level by Dr. Eliyahu M.
Goldratt written in a conversational way. This book portrays writer’s thoughts
regarding venture administration as a story. It is a book in regards to Project
Management for venture directors, operation administrators and pioneers. This
book can increase the value of the ability of undertaking administrators who
are endeavoring to do right things in their task. This book likewise exhibits
weaknesses of current instruction framework and damages it is doing to a man.
This book clarifies the advantages of instilling intelligent sessions amongst
mentor and understudies as a superior educating philosophy.
This book
essentially demonstrates advantages and utilization of ‘Hypothesis of
Constraints’ in streams patterns of industry

The
Story

Daniel Pullman is the chairman and CEO of Genenmodem,
he want to develop the new product and release the product into market with new
strategies for that he appointed three of his young employees and asked them to
work on it at any cost. They three employees are joined in executive MBA course
to learn project management skill and use them for progress of the project. The
business school founder Bernerd and BJ the president of the business school are
working different strategies for enrolment of student in the MBA course to
safeguard the there business. Professor Rick and Jim are working on the
business school, they want publish the good article on project management to
get the there Ph.D done. In class every student where given different assignment
because every one there are worked on different project, so that they can get
to know every problems on the project and they discussed about the issues in
the class and tried to solve the problem by discussing among themselves. The
course gone through topics on critical chain method, resource buffer, feeding
buffer, project buffer, student syndrome, vendor management, pert and gantt
chart techniques there advantages and disadvantages.

 

Review of Critical Chain by Eliyahu Goldratt

Again it is composed as a business novel, this
elaborates  from the viewpoint of a
teacher at a small college whose activity is in danger since MBA courses are
not conveying the functional aptitudes required by business. I think Goldratt was
making an intriguing point there. The saint is offered an opportunity to
instruct on course on the official MBA program and it’s one he doesn’t know
much about so he needs to learn as he runs and conflicts with customary venture
administration thoughts.

I am delighted in perusing Basic Chain and I’d rather
rate it as superior to anything. It’s Not Good fortune (substantially less
befuddling) but rather not as convincing as the work of art.

On the off chance that you’ve done any extend
administration, you’ll know about the basic way – the longest arrangement of
ward exercises which must be improved in the situation the venture to be
finished. The basic chain takes the basic way and furthermore expects that one
asset will be the limitation or bottleneck and exercises by this asset are
probably going to be postponed.

Scarcely any individuals will not confess to evaluates
however likely will admit to a high level of trust in completing the
undertaking before their gauge. Sadly few undertakings get completed early on
the grounds that there’s dependably some additional you can improve. Utilizing
the thoughts of the typical circulation bend, you can demonstrate the rationale
that time must be cushioned far from the middle half likely time.

I had a couple of moments of realization as was going
through it and longed that I’d thought about a portion of the thoughts when I
was overseeing extensive activities. Basic Chain will challenge the way you
customarily consider and design ventures. My one concern is that the book is
fiction so it’s anything but difficult to have an account of task bedlam
without basic chain considering, and serene rational soundness utilizing the
thoughts of the basic chain.

In case you’re engaged with overseeing or supporting
activities in your business or as a specialist, I suggest you read Basic Chain
by Eliyahu Goldratt. It may not change all that you do but rather I’m certain
it will impact a portion of the things you do. That is an awesome
accomplishment for a book.

 

 

Demand
and Supply Problem:

In infrastructure projects there is huge unbalance in
demand and supply of qualified construction professional, it lead to long term
issue in making projects more expensive and risky that results to compromise on
quality.

In the construction of power plant project there is
huge gap in demand and supply of shortage of 
good equipment suppliers to the contractor. For example one of the
largest power generation company is involved in several project with equipment
supply order, due to poor management of supply process he unable to supply the
equipment on time which lead to project delay and cost overrun.

In India there is shortage of good engineering
procurement and construction contractors who are capable of executing complex
infrastructure project. Now in Indian government proposing many infrastructure
project but there are no EPC constructor to take complex project. 

Cost
overruns and overdue of schedule:

There are many reasons for project overdue here are
some of them are listed below

1.      Lack
of skilled project manager leads to project delays and cost overruns project
lifecycle.

2.      Change
of scope of the project.

3.      Frequent
changes in designs.

4.      Weak
procurement planning.

5.      Delays
in land acquisition process for schedule overruns in pre execution phase.

6.      Relationship
with different projects lead to schedule overrun in project.

7.      Coordination
with stakeholder in the project team.

8.      Awareness
in using modern technology is lacked behind.

9.      Improper
project monitoring

10.  Availability
of resources at right time, right place, right way of using it necessary.

Reasons for project cost overruns

1.      Scope
creep in pre execution phase

2.      Due
to insufficient DPRs

3.      Environmental
safeguard has high probability that affects the project cost.

4.      Material
price escalation.

5.      Where
infrastructure projects are located in remote locations the transportation
facility are poor, to maintain proper logistics it adds to the project cost.

To overcome from this problems of project schedule
overruns following methods are done for effective work progress.

·        
Proper monitoring of project change management
are done periodically.

·        
Implementing proper application of tools
and techniques.

·        
Proper supply chain management are to be
done.

·        
Selecting good skilled resources for work
to be performed.

·        
Developing efficient transportation and
logistics system to the project.

To overcome problems of project cost overruns
following are some solutions to it.

·        
Proper contract management process

·        
Proper selection of contractor and vendor
for supply of service

·        
Risk management techniques

·        
Long time relationship with vendors.

·        
Good procurement strategies

·        
Good organizational structures

Apart from this there are some external factors which
effects project delivery are politics of local governing body and
organizational structures of the company. Here are some of the political issues
that influences the project.

·        
Polices of the governments

·        
Rules and regulations of the government

·        
Taxes of that particular area where
project is located.

·        
Labour laws and employees laws of the
country.

·        
Environmental factors.

·        
Local bye laws.

·        
Industrial relations and law problems of
local area.

·        
Regulatory approvals for the project.

·        
Government polices changes.

·        
Government bodies changes.

This are some of the political issue that involves in
delay of project delivery, to overcome this proper background check has to be
done before project starts.