Global Consulting Group
Since 1989, Global Consulting Group has been providing engineering, infrastructure development, and consultancy services, across the world. In 2007, the group bought an educational consultancy in India to help strengthen its core market sectors in the country.

Today, the Indian chapter of the business spans across eight offices in the metropolitan cities of India and employs more than 130 professionals. The Global Consulting Group in India provides expert advice in diverse fields ranging from conceptualizing, infrastructure set-up, brand building, and start-up operations,

Recently the group bagged a contract to establish six universities in different parts of the country from a China based firm, Xhianshi Corporation. The first project will come up at Manesar, in the National Capital Region. Spread over 60 acres, the Manesar project will have twelve blocks of eight floors each. The total built-up area would be approximately6 million square feet.

Global Consulting Group has to complete the project by May 2011. The group has appointed Mr. Rajiv Sood, their best Project Manager for the Manesar project. Rajiv is an IIT graduate with an MBA from a reputed B-school. Prior to the Global Consulting Group, he has worked for City Infra having expertise in the field of infrastructure projects. Rajiv took this as a challenge and aggressively met deadlines for the civil construction. He delivered seven blocks with four floors each, by May 2009.

On one afternoon, Hemant, his ex-colleague form City Infra, visited Rajiv. Hemant found Rajiv in midst of thoughts. Rajiv told Hemant that he is stuck with a problem. He had to take a decision on Electrical Conduit to be used in this project. He has to purchase around 3000 km of electrical conduits, along with necessary accessories, for the Manesar project. Until yesterday, he was to take a decision between two alternatives i.e. Metal Conduit and PVC Conduit. Rajiv told Hemant that he has been just visited by an executive of India Pipes, manufacturers of High Density Poly Ethylene Pipes (HDPE). He has to decide among three alternative conduits - Metal Conduit, Poly-vinyl chloride pipe, vis-à-vis HDPE pipes. He also clarified with Hemant that the electrical conduits go in to ceiling at the time of casting and in the walls before plastering. The decision needs to be taken today, as he is going out of country for one month and the project may suffer. Hemant suggested that Rajiv do a comparative study. Rajiv prepared the study as below:

 
 

Metal Conduit

PVC Conduit

HDPE Conduit

Standard Lengths

3 m

3 m

100 m or as required

Eco-friendly
Yes

Emits harmful Carcinogenic element

Yes

Corrosion Resistant
Though galvanized but prone to corrosion

Yes

Yes

Transportation and Handling

Heavy so handling is tough and transportation is costly.

Light in weight so easier to handle and
will be cheaper to transport than the metal conduits
Comes in coils, so is cheaper to transport
Accessories (Joining Coupler, Long Bend ,
Junction Box, Deep Junction Box etc.)

Required

Required

Less number of accessories required as it comes in longer lengths

Wastage

Approx. 8% wastage

Approx. 8% wastage

Approx. 1% wastage
Designed Life
10-20 years 10-15 years 50 years
Strength
Most sturdy Less than the metal conduit Same as PVC conduit
Installer Friendly
Tough to install, More labour and time required to install. Grounding is also required. Easier than the metal conduit Fast installation as less no. of accessories to be installed
Rajiv further said that the chance of seepage is more in case of PVC conduit as the number of loose joints is more. Rajiv also told that 1% of PVC conduit is always found blocked because of the seepage from joints hence could not be used.
Rajiv has a budget constraint too. He has to optimize the financial resources available to him and deliver the very best option. To do so, he also did a cost analysis to improve his decision-making. (See the chart below)
 
 

Metal Conduit

PVC Conduit

HDPE Conduit

Conduit cost
( Rs./m) for 25mm

56

11

20

Accessories Cost
( Rs./m)
20

2

0.25

Installation Cost
(Rs./m)
20

10

6

Wastage Cost
(Rs./m)

4.48

0.88 0.20
Cost of Acquisition (Rs./m)

100.48

23.88

26.45

Rajiv has kept aside Rs.100/m for this item and he wants to save as much as he can, as there are cost pressures on other items. Rajiv is still in dilemma. Evaluate all options and help Rajiv take the right decision on the conduit he should use at the project and aptly justify your choice.
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