Riza Yosia receives a PhD scholarship from UNSW. He will join on 19 July 2009.
Congratulations! and Good luck with your PhD study.
Posted by
Hadikusumo
Tuesday, 30 June 2009
EPC PROJECTS MANAGEMENT AND PROBLEMS: CASE STUDY OF INTERNATIONAL AND LOCAL EPC CONTRACTORS OF OIL/GAS AND PETROCHEMICAL PROJECTS IN VIETNAM
Now with a stable political and social economic status, Vietnam becomes a destination of the foreign investors from developed countries. The foreign investors always perceived to be beneficial to the host countries. In the side of host counties, foreign investment business structures are predicted to bring back the foreign capital, advanced technologies, management know-how and better quality products for re-export or for domestic market distribution. The quest for technology is more essential for the host countries when the requirement of foreign investors’ capital is obvious and great.
Since the start of the opening market economy, hundred investors have transferred their money to Vietnam and found out the business, almost strong and famous chaebol or enterprises invested to Vietnam have concentrated in investment to Oil and Gas industry. With the Joint Venture Agreements selection, they became shareholders with Vietnamese State Owned Companies and have been starting their businesses successfully.
In recent years, Vietnam Oil and Gas Group (PVN) have been carrying out a lot of mega projects. Some have been done and others are progressing like Vietnam-Soviet Union JV (VSP) oil exploration and developing projects.
In order to ensure that most projects will be executed with the aiming cost, quality and time targets, Vietnamese Government and PVN particularly have to invite engineering and technical resources from developing or developed countries by bidding for the International EPC Contractors, International PMC, Certificate Agents, Insurance companies etc
With the Joint Venture Agreements selection, these companies became shareholders with Vietnamese State Owned Companies and have been starting their businesses successfully.
Even though most of EPC Contractors who were selected for PVN’s projects are well experienced and well-known in their particular categories, it does not mean that all the EPC Contractors were successful in reaching clients’ satisfactions. The common problems during the implementation the projects were schedule delay, contingencies, variation orders and unqualified accomplishment
Mr. Nguyen Khoa conducted a case study on “EPC Projects Management and Problems: Case Study of International and Local EPC Contractors of Oil/Gas and Petrochemical Projects in Vietnam” to (1) explore some reasons why some EPC contractors getting troubles in carrying out the project, also their problems in EPC Project Management; and (2) explore the better practices in EPC project management.
His research study focused on how the EPC contractors control and manage the EPC projects in Vietnam including procurement, cost, scheduling management. Three Petrochemical construction projects were selected base on specific criteria such as:
· Medium to large projects
· Executed by International EPC contractors and Local EPC Contractor this have dealing experiences in Vietnamese construction market.
· Mentioned projects were accomplished and now under operation.
The case study projects are Phumy Fertilizer Project, Phumy PVC Project and Thivai Terminal and LPG Pipeline Project since these three have similar things in common:
Belonging to PetroVietnam.
Projects were built in Southern of Vietnam, in 02 adjacent Industrial Zones.
The Execution time of these 03 projects was happened in 1997 to 2005.
The Type of contract is EPC Contract; 02 EPC Contractors were assigned and the other one was selected by bidding.
The 02 Projects were carried out by International EPC Contractors were successful in project execution. The other one was executed by the Local EPC Contractor was the failure one (in time, cost and quality management.)
Based on the result of the study, among hundred projects belonged to PetroVietnam, the Phumy Fertilizer Project was the first and only project that was accomplished on time and under the estimated budget. The reasons for this project’s success were due to the competence of the Consortium, support and direction from the Nation Leaders, and scare of fertilizer in current situation. But, in the point of view of a member who joined this project, the hard working spirit of the Project Management Board in both sides (Client and Consortium) is the only primary reason.
Phumy Plastic Plant was also one of the accomplished projects of PetroVietnam within Joint Venture field. The project itself was started, executed and finished on time and within the approved budget. Most of the site activities were the equipment erection and installation works; the civil and construction works occupied a small part of whole project without any special solution need to be applied. The procurement activities were done by the EPC Contractor with the fixed configuration from the Licensor and PETRONAS (shareholders), so it was not sophisticatedly ordered and contracted to the International Vendors.
Thivai LPG Terminal and Pipeline Project was a small project without any high techniques or sophisticated configuration. It is about 12 ha in total and 20 ha for extension consideration in the future following the International Codes and Standards in engineering design and project management. It was still considered a failure due to the incompetencies of the EPC Contractor. Without historical experiences in role as the EPC Contractor, PVECC did not know how to solve and manage the project.
Mr. Khoa concluded that the main cause in the projects’s failure was depending on the competency of the EPC Contractor. Lack of experiences in the similar works, bad in planning and scheduling, bad financing plan, fragile in contracts negotiation, low reputation, lack of world wide relationships, unskillful in project management, shortcoming of human resources etc. are the constraints that the Local EPC Contractors have to overcome to improve and affirm themselves for getting the reputation from the clients in current competition market.
His thesis abstract is copied and posted.
ABSTRACT
Vietnam social-economic is booming in recent years, with attracting investment policies, the Vietnamese Government have been successful in luring many foreign investors starting their businesses in Vietnam, especially in Oil and Gas Industry.
Known as a country has rich natural fossil resources, Vietnam has large capacity of crude oil and natural gas in his off-shore East Sea areas. But with the restriction of engineering and updated technologies, the Vietnamese Government / PetroVietnam have been exerted themselves to attract as more bilateral relationships from developed countries (US, Russian, England, France, Norway, Japan...) as possible to expand their advantages in exploration and own their fossil energy resources.
Most of the projects that related to Oil and Gas Industry which have been carried out in Vietnam following the EPC type of contract. In the point of view of PetroVietnam, Oil and Gas projects should be implemented effectively, and that is the reason why the international EPC Contractors are the most feasible selection, cause of the lack of experiences in mega projects executing of Local EPC Contractors.
In order to manage and control the project to reach the demands from the Client / Owners, normally are cost, time and quality, the International EPC Contractors should have very efficiency project management methods which could help the International EPC Contractors in order to avoid any problems and adverse factors related to cost overrun, delay and inadequate productivities.
In the contain of this thesis, the author would like to focus on the research of International EPC Contractors Project Management, in Oil and Gas Industry Projects. The three selected case study projects are the Phumy Fertilizer Project, the Phumy PVC Project and the last one is the Thivai LPG Pipeline and Terminal Project. Those mentioned projects will be draft informed as below:
1. Phumy Fertilizer Project:
Petrochemical Industry, that included the Urea (Fertilizer) production, is one of foundation industries, it’s really important for the national economic developing. The shape and growing of this industry will become a force to develop the agriculture and other related industries.
In economic developing strategies of the Government, execution the Fertilizer or Urea Plant, not only to ensure the stability and initiative in supplying the fertilizer with reputedly as the strategic production for national developing, but also to bring back the other effective outcomes aspects such as economic, social, political and also distribute to impulse the industrialize and modernize processing that taken initiative by Vietnamese Communist Party.
In years ago, Vietnamese Government did have the mission the develop the fertilizer industry, but it was impossible due to some objective existences. There have been only some small size plants of Urea and Phosphates were operating in Vietnam in current time, with the supplying capacity approximately only 7% of the national demand, and the remain requires should depend on the importing resources and be paid with valuable foreign currencies.
On the April of 2000, the Prime Minister delegated to PetroVietnam (PVN) incorporated with Vietnam General Chemical Companies (VinaChem) and Vietnam Agriculture Company (Vigecam) to establish the Feasibility Study Report (FS) of Fertilizer Plant with the feedstock from associated (nature) gas resources.
Followed the order of the Prime Minister (correspondence No. 58/TB-VPCP dated 30th April, 2000 referred to Developing the Gas – Power – Fertilizer Program), PVN urgently drafted and submitted to the Government for approval the Feasibility Study Report of Fertilizer Project. This project was invested by Vietnamese Government / PVN, and the selected location of the project is in Phumy 1 Industrial Zone in Baria – Vungtau Province.
This is the first Fertilizer Plant in Vietnam could use the feedstock from the associated nature gas, this Plant supplies the production to the domestic market, concentration to the Mekong Delta provinces and the other areas in the South of Vietnam. Until now, most of Urea used in Vietnam must be imported from regional countries. As forecasting, the 2000 – 2005 Urea demand increased around 4,8%. The predict urea demand in 2000 was 1,975 millions tons, it was 2,07 millions ton on 2001, 2,169 millions ton in 2002, 2,224 millions ton in 2003, 2,29 millions ton on 2004 and 2,37 millions ton in 2005. The demand speed of grow in 2005 – 2010 period is 4,1% and total urea demand in 2010 will be 2,9 millions ton. In case the Plant will operate full design capacity (740.000 ton – 800.000 ton /year) in the initiate stage, it only satisfies 35% of domestic demand (Phumy Fertilizer Project – The Feasibility Study Report). Consequently, the project will have advantages in competition compare to the other imported resources.
The Fertilizer Plant uses the feedstock from the associated gas resources from CuuLong and Nam ConSon gas basins, and the predict output capacity around 740.000 ton / year of urea (2.200 tons of urea / day and 1.350 tons of ammonia / day). The flexible in using the feedstock (gas) will warranty the high efficiency of economic and necessary security for the Plant in case of the fluctuation of cost and supplying resources in the market.
2. The Phumy PVC Plant:
This project was a Joint Venture project between 04 shareholders: PetroVietnam, Petronas - Malaysia, Marubeni - Japan and TMS - Thailand. This project located nearby the Thivai LPG Pipeline and Terminal, in the Caimep Industrial Zone, Baria – Vungtau Province, with total square around 07 ha.
The outputs of this plant is Polyvinyl Chloride with capacity is 100,000 MTPA. Total investment of this project is USD70 millions and via the License of European Chloride, UK. The project has Amended Joint Venture Contract signed on 12th April 2000. Amended Investment License 1305/GPDC3 issued on 6th May 2000. EPCC (Engineering – Procurement – Construction – Commissioning) Contract awarded to Samsung Engineering and site handover on 15th May 2000. Site preparation and soil improvement works essentially completed and Piling scheduled to start end June 2001. The plant on stream by October 2002.
The PVC plant uses the LPG and Natural gas as the feedstock to their inputs. In the project management perspective, this project could be a success. But in operation phase, due to Joint Venture Terms and References, this plant has to face with a lot of difficulties in production and selling their products. But it is a difference aspect of The Phumy PVC Plant. In this scope of research, the author only focus on the EPCC Contractor Project Management side and will present the detail in the Chapter 4.
3. The Thivai LPG Terminal and Pipeline Project:
This project is a complex of the 03 x 06 inches pipelines system connecting the DinhCo Gas Distribution Plant to the Thi Vai LPG Terminal with the distance of on-shore underground pipeline around 48 km. The production was transported via the pipelines system and separated into three kinds of products such as Condensate, Butane-Propane gas and LPG. Products were terminated in separate storages and exported to the customers via barges or lorries.
The processing system of this project is including: 01 Pig Launcher Skid, 01 Pig Receiver Skid, 03 Line Block Valve Skids, 33 x 463m3 horizontal pressure vessels (bullets) for LPG, 02 x 6500m3 floating roof tanks for Condensate. 02 Loading Arm systems for product export, 02 LPG Compressors, Online Bu-Pro Mixing system, the Flare with burning capacity in 7503/h and the Close Drain System, Nitrogen Compressor, Diesel Generators, Fire Fighting System. 02 Product export Berths and function Buildings .etc. This project had the total budget cost was around USD 58 million and scheduled to construct in 02 years, from 1997 to 1999. But actually, this project had delay 02 years more and had a lot of contingencies that raised the budget into USD 71 millions. Finally the project had have finished and handed over to the End-User, the company named PetroVietnam Gas Co. (PV Gas.) on the end of 2001 with 02 years delay.
The EPC Contractor of this project was one of PetroVietnam Subsidiaries – PetroVietnam Engineering and Construction Company (PVECC). It was the biggest construction company of PVN and had construction experiences in most of mega projects which had been invested by PVN in Vietnam. This Company had about 20 Construction Enterprises underneath and they were the subcontractors for PVECC to carry out this project at that time.
This project received a lot of supports from the PetroVietnam, but could not be a success project in cost, time, and quality management aspects. In this case study, the author would like to present some of main reasons that led this project still will be a nightmare of everyone who used to be involved in, and the information of this project will be detail in the Chapter 4.
Since the start of the opening market economy, hundred investors have transferred their money to Vietnam and found out the business, almost strong and famous chaebol or enterprises invested to Vietnam have concentrated in investment to Oil and Gas industry. With the Joint Venture Agreements selection, they became shareholders with Vietnamese State Owned Companies and have been starting their businesses successfully.
In recent years, Vietnam Oil and Gas Group (PVN) have been carrying out a lot of mega projects. Some have been done and others are progressing like Vietnam-Soviet Union JV (VSP) oil exploration and developing projects.
In order to ensure that most projects will be executed with the aiming cost, quality and time targets, Vietnamese Government and PVN particularly have to invite engineering and technical resources from developing or developed countries by bidding for the International EPC Contractors, International PMC, Certificate Agents, Insurance companies etc
With the Joint Venture Agreements selection, these companies became shareholders with Vietnamese State Owned Companies and have been starting their businesses successfully.
Even though most of EPC Contractors who were selected for PVN’s projects are well experienced and well-known in their particular categories, it does not mean that all the EPC Contractors were successful in reaching clients’ satisfactions. The common problems during the implementation the projects were schedule delay, contingencies, variation orders and unqualified accomplishment
Mr. Nguyen Khoa conducted a case study on “EPC Projects Management and Problems: Case Study of International and Local EPC Contractors of Oil/Gas and Petrochemical Projects in Vietnam” to (1) explore some reasons why some EPC contractors getting troubles in carrying out the project, also their problems in EPC Project Management; and (2) explore the better practices in EPC project management.
His research study focused on how the EPC contractors control and manage the EPC projects in Vietnam including procurement, cost, scheduling management. Three Petrochemical construction projects were selected base on specific criteria such as:
· Medium to large projects
· Executed by International EPC contractors and Local EPC Contractor this have dealing experiences in Vietnamese construction market.
· Mentioned projects were accomplished and now under operation.
The case study projects are Phumy Fertilizer Project, Phumy PVC Project and Thivai Terminal and LPG Pipeline Project since these three have similar things in common:
Belonging to PetroVietnam.
Projects were built in Southern of Vietnam, in 02 adjacent Industrial Zones.
The Execution time of these 03 projects was happened in 1997 to 2005.
The Type of contract is EPC Contract; 02 EPC Contractors were assigned and the other one was selected by bidding.
The 02 Projects were carried out by International EPC Contractors were successful in project execution. The other one was executed by the Local EPC Contractor was the failure one (in time, cost and quality management.)
Based on the result of the study, among hundred projects belonged to PetroVietnam, the Phumy Fertilizer Project was the first and only project that was accomplished on time and under the estimated budget. The reasons for this project’s success were due to the competence of the Consortium, support and direction from the Nation Leaders, and scare of fertilizer in current situation. But, in the point of view of a member who joined this project, the hard working spirit of the Project Management Board in both sides (Client and Consortium) is the only primary reason.
Phumy Plastic Plant was also one of the accomplished projects of PetroVietnam within Joint Venture field. The project itself was started, executed and finished on time and within the approved budget. Most of the site activities were the equipment erection and installation works; the civil and construction works occupied a small part of whole project without any special solution need to be applied. The procurement activities were done by the EPC Contractor with the fixed configuration from the Licensor and PETRONAS (shareholders), so it was not sophisticatedly ordered and contracted to the International Vendors.
Thivai LPG Terminal and Pipeline Project was a small project without any high techniques or sophisticated configuration. It is about 12 ha in total and 20 ha for extension consideration in the future following the International Codes and Standards in engineering design and project management. It was still considered a failure due to the incompetencies of the EPC Contractor. Without historical experiences in role as the EPC Contractor, PVECC did not know how to solve and manage the project.
Mr. Khoa concluded that the main cause in the projects’s failure was depending on the competency of the EPC Contractor. Lack of experiences in the similar works, bad in planning and scheduling, bad financing plan, fragile in contracts negotiation, low reputation, lack of world wide relationships, unskillful in project management, shortcoming of human resources etc. are the constraints that the Local EPC Contractors have to overcome to improve and affirm themselves for getting the reputation from the clients in current competition market.
His thesis abstract is copied and posted.
ABSTRACT
Vietnam social-economic is booming in recent years, with attracting investment policies, the Vietnamese Government have been successful in luring many foreign investors starting their businesses in Vietnam, especially in Oil and Gas Industry.
Known as a country has rich natural fossil resources, Vietnam has large capacity of crude oil and natural gas in his off-shore East Sea areas. But with the restriction of engineering and updated technologies, the Vietnamese Government / PetroVietnam have been exerted themselves to attract as more bilateral relationships from developed countries (US, Russian, England, France, Norway, Japan...) as possible to expand their advantages in exploration and own their fossil energy resources.
Most of the projects that related to Oil and Gas Industry which have been carried out in Vietnam following the EPC type of contract. In the point of view of PetroVietnam, Oil and Gas projects should be implemented effectively, and that is the reason why the international EPC Contractors are the most feasible selection, cause of the lack of experiences in mega projects executing of Local EPC Contractors.
In order to manage and control the project to reach the demands from the Client / Owners, normally are cost, time and quality, the International EPC Contractors should have very efficiency project management methods which could help the International EPC Contractors in order to avoid any problems and adverse factors related to cost overrun, delay and inadequate productivities.
In the contain of this thesis, the author would like to focus on the research of International EPC Contractors Project Management, in Oil and Gas Industry Projects. The three selected case study projects are the Phumy Fertilizer Project, the Phumy PVC Project and the last one is the Thivai LPG Pipeline and Terminal Project. Those mentioned projects will be draft informed as below:
1. Phumy Fertilizer Project:
Petrochemical Industry, that included the Urea (Fertilizer) production, is one of foundation industries, it’s really important for the national economic developing. The shape and growing of this industry will become a force to develop the agriculture and other related industries.
In economic developing strategies of the Government, execution the Fertilizer or Urea Plant, not only to ensure the stability and initiative in supplying the fertilizer with reputedly as the strategic production for national developing, but also to bring back the other effective outcomes aspects such as economic, social, political and also distribute to impulse the industrialize and modernize processing that taken initiative by Vietnamese Communist Party.
In years ago, Vietnamese Government did have the mission the develop the fertilizer industry, but it was impossible due to some objective existences. There have been only some small size plants of Urea and Phosphates were operating in Vietnam in current time, with the supplying capacity approximately only 7% of the national demand, and the remain requires should depend on the importing resources and be paid with valuable foreign currencies.
On the April of 2000, the Prime Minister delegated to PetroVietnam (PVN) incorporated with Vietnam General Chemical Companies (VinaChem) and Vietnam Agriculture Company (Vigecam) to establish the Feasibility Study Report (FS) of Fertilizer Plant with the feedstock from associated (nature) gas resources.
Followed the order of the Prime Minister (correspondence No. 58/TB-VPCP dated 30th April, 2000 referred to Developing the Gas – Power – Fertilizer Program), PVN urgently drafted and submitted to the Government for approval the Feasibility Study Report of Fertilizer Project. This project was invested by Vietnamese Government / PVN, and the selected location of the project is in Phumy 1 Industrial Zone in Baria – Vungtau Province.
This is the first Fertilizer Plant in Vietnam could use the feedstock from the associated nature gas, this Plant supplies the production to the domestic market, concentration to the Mekong Delta provinces and the other areas in the South of Vietnam. Until now, most of Urea used in Vietnam must be imported from regional countries. As forecasting, the 2000 – 2005 Urea demand increased around 4,8%. The predict urea demand in 2000 was 1,975 millions tons, it was 2,07 millions ton on 2001, 2,169 millions ton in 2002, 2,224 millions ton in 2003, 2,29 millions ton on 2004 and 2,37 millions ton in 2005. The demand speed of grow in 2005 – 2010 period is 4,1% and total urea demand in 2010 will be 2,9 millions ton. In case the Plant will operate full design capacity (740.000 ton – 800.000 ton /year) in the initiate stage, it only satisfies 35% of domestic demand (Phumy Fertilizer Project – The Feasibility Study Report). Consequently, the project will have advantages in competition compare to the other imported resources.
The Fertilizer Plant uses the feedstock from the associated gas resources from CuuLong and Nam ConSon gas basins, and the predict output capacity around 740.000 ton / year of urea (2.200 tons of urea / day and 1.350 tons of ammonia / day). The flexible in using the feedstock (gas) will warranty the high efficiency of economic and necessary security for the Plant in case of the fluctuation of cost and supplying resources in the market.
2. The Phumy PVC Plant:
This project was a Joint Venture project between 04 shareholders: PetroVietnam, Petronas - Malaysia, Marubeni - Japan and TMS - Thailand. This project located nearby the Thivai LPG Pipeline and Terminal, in the Caimep Industrial Zone, Baria – Vungtau Province, with total square around 07 ha.
The outputs of this plant is Polyvinyl Chloride with capacity is 100,000 MTPA. Total investment of this project is USD70 millions and via the License of European Chloride, UK. The project has Amended Joint Venture Contract signed on 12th April 2000. Amended Investment License 1305/GPDC3 issued on 6th May 2000. EPCC (Engineering – Procurement – Construction – Commissioning) Contract awarded to Samsung Engineering and site handover on 15th May 2000. Site preparation and soil improvement works essentially completed and Piling scheduled to start end June 2001. The plant on stream by October 2002.
The PVC plant uses the LPG and Natural gas as the feedstock to their inputs. In the project management perspective, this project could be a success. But in operation phase, due to Joint Venture Terms and References, this plant has to face with a lot of difficulties in production and selling their products. But it is a difference aspect of The Phumy PVC Plant. In this scope of research, the author only focus on the EPCC Contractor Project Management side and will present the detail in the Chapter 4.
3. The Thivai LPG Terminal and Pipeline Project:
This project is a complex of the 03 x 06 inches pipelines system connecting the DinhCo Gas Distribution Plant to the Thi Vai LPG Terminal with the distance of on-shore underground pipeline around 48 km. The production was transported via the pipelines system and separated into three kinds of products such as Condensate, Butane-Propane gas and LPG. Products were terminated in separate storages and exported to the customers via barges or lorries.
The processing system of this project is including: 01 Pig Launcher Skid, 01 Pig Receiver Skid, 03 Line Block Valve Skids, 33 x 463m3 horizontal pressure vessels (bullets) for LPG, 02 x 6500m3 floating roof tanks for Condensate. 02 Loading Arm systems for product export, 02 LPG Compressors, Online Bu-Pro Mixing system, the Flare with burning capacity in 7503/h and the Close Drain System, Nitrogen Compressor, Diesel Generators, Fire Fighting System. 02 Product export Berths and function Buildings .etc. This project had the total budget cost was around USD 58 million and scheduled to construct in 02 years, from 1997 to 1999. But actually, this project had delay 02 years more and had a lot of contingencies that raised the budget into USD 71 millions. Finally the project had have finished and handed over to the End-User, the company named PetroVietnam Gas Co. (PV Gas.) on the end of 2001 with 02 years delay.
The EPC Contractor of this project was one of PetroVietnam Subsidiaries – PetroVietnam Engineering and Construction Company (PVECC). It was the biggest construction company of PVN and had construction experiences in most of mega projects which had been invested by PVN in Vietnam. This Company had about 20 Construction Enterprises underneath and they were the subcontractors for PVECC to carry out this project at that time.
This project received a lot of supports from the PetroVietnam, but could not be a success project in cost, time, and quality management aspects. In this case study, the author would like to present some of main reasons that led this project still will be a nightmare of everyone who used to be involved in, and the information of this project will be detail in the Chapter 4.
Monday, 29 June 2009
CONSTRUCTION MANAGEMENT PRACTICES UNDER CONSTRUCTION MATERIAL PRICE FLUCTUATION
Project cost management is defined as one of the nine knowledge areas which are applicable knowledge and practices to most projects. Construction materials generally consume about 40 percent to 60 percent of total budget of the project.
In 2002, the result of break-up construction costs by Construction Industry Development Council Survey in India explained that construction material roughly consume at range from 41 percent to 60 percent of total construction costs. Hence, it is very important to closely pay attention on the material cost then build a good material cost management.
In cost management, one of the favorite indicators is the cost index. It is the ratio of cost or price for a given commodity or service or set of commodities or services at a given time and place compared to the cost or price at a base or standard time and place (Humphreys, 2005). Likewise, it is necessary to learn the cost index because one of many factors influencing construction costs is time due to changes in demand, economic conditions, and prices. Cost indexes convert costs which was applicable at a past date to equivalent costs now or in the future (William, 1994).
However, the use of cost indexes has several limitations. For example, cost indexes are based on average values so in specific cases, the actual value may be different from the average. Humphreys (2005) mentioned that at this time, the technology is changed so the method by which any given index is complied may periodically be changed by the complier. In such cases, the index values at different times should not be compared directly. Figure 1.1 is an example of construction material price indexes by Ministry of Commerce Thailand that based year to compare for these indexes is year 2000.
Figure 1.2 revealed that the construction price indexes in Thailand are very uncertain from year 2000 to 2008. A trend of uncertainty at recent years is increasing. To apply escalation in construction project, it should be considered in two levels which are historic and future (Squire, 2008). From historic escalation are such bid results, price indexes, price comparisons and cost record. For future escalation data, it can be found from assessed forecast which attempts to anticipate cost. Hence, it is important to find the way to handle with uncertain material prices in construction.
Squire (2008) stated that in construction, the price fluctuation comprises material, labor, equipment, overhead costs and fees. Cost management on projects becomes a particular challenge in a location where the economic climate is uncertain. In this circumstance, one of the significant consequences is uncertain construction price which can lead to many problems. Gallagher and Riggs (2006) stated that ripple effect of this price escalation has included numerous other impacts. For example, the first impact is putting project on hold while supplemental funding is sought. Second, the alternative of canceling the project if additional money is not available is chosen. Third, scale-down the project scope is attempting to be proceeded. Therefore, the price fluctuation can create enormous difficulty in the construction industry.
Ms. Piyachat Thaveelert made a survey on Construction Management Practices under Material Price Fluctuation to (1) investigate the situation of material price fluctuation and its effects on the practice of construction contractors during each stage namely estimating, bidding and construction stage; (2) identify the existing practices of how contractor strategically do to the situation and indicate interrelationships among practices; and (3) propose recommendation on how to handle the situation of construction price fluctuation.
Ms. Thaveelert found out that construction industry in Thailand usually confronts with the situation of material price fluctuation. Since the materials normally cost at the highest proportion of total cost, the situation of material price fluctuation becomes severe for construction industry. At this point, the appropriate management under material price fluctuation should be found out and investigated in order to be able to handle with the situation.
Her thesis abstract is copied and posted.
ABSTRACT
A construction management is very important for a construction project. To be a successful project, it requires an appropriate management from contractors to cope with especially the situation in construction industry that is unaccustomed. According to the recent record, it has been found that construction industry faced with the situation of material price fluctuation. Due to the material cost usually consumes the highest proportion in the construction cost, it is very significant for contractors to know how to handle with the situation. This research aims to investigate the existing of construction management practices under the construction material price fluctuation and propose the recommendation to respond to the situation.
The study uses a questionnaire as a research instrument to explore the existing practices of contractors. Two statistic methods were mainly used to analyze data from questionnaire surveys. The first analysis was descriptive analysis which used means and rankings to analyze. Second, the hypothesis testing was used to compare practices of the Bill of Quantity making and, procurement and employment among three groups of respondents. Those respondents are contractors focusing on private owners, public owners and both owners. In addition, another hypothesis testing was to compare practices relating to contract conditions between private owners and public owners through contractors’ perceptions. At his point, the correlation between groups of contractors was also tested through the hypothesis testing of correlation. Finally, the factor analysis was carried out to find out the interrelationship among practices by grouping the variables.
Result were found that for the Bill of Quantity making process, contractors prefer to find out the price trend by discussing the price trend with their suppliers with the highest mean. For the procurement and employment of contractors, contractors need to pay more attention on supplier selection process with the highest mean. For practices on contract conditions, it showed that the practice of the Specifying contract condition relating to furnishing materials clearly has the highest level of practice in private owners. In public owners, the Reasonable advance payment has the highest level of practice. The correlation between these two groups is also high positive correlation for practices on contract conditions. Last, the result of factor analysis showed that interrelationships of practices and it could be categorized into eight groups: Negotiating with Owners, Subcontractor Pricing Agreement, Government Pricing Index, Material Price Risk, Proactive Cost Control, Contractors’ Historical Data, Contractor Procurement Strategy and Estimate Pricing.
In 2002, the result of break-up construction costs by Construction Industry Development Council Survey in India explained that construction material roughly consume at range from 41 percent to 60 percent of total construction costs. Hence, it is very important to closely pay attention on the material cost then build a good material cost management.
In cost management, one of the favorite indicators is the cost index. It is the ratio of cost or price for a given commodity or service or set of commodities or services at a given time and place compared to the cost or price at a base or standard time and place (Humphreys, 2005). Likewise, it is necessary to learn the cost index because one of many factors influencing construction costs is time due to changes in demand, economic conditions, and prices. Cost indexes convert costs which was applicable at a past date to equivalent costs now or in the future (William, 1994).
However, the use of cost indexes has several limitations. For example, cost indexes are based on average values so in specific cases, the actual value may be different from the average. Humphreys (2005) mentioned that at this time, the technology is changed so the method by which any given index is complied may periodically be changed by the complier. In such cases, the index values at different times should not be compared directly. Figure 1.1 is an example of construction material price indexes by Ministry of Commerce Thailand that based year to compare for these indexes is year 2000.
Figure 1.2 revealed that the construction price indexes in Thailand are very uncertain from year 2000 to 2008. A trend of uncertainty at recent years is increasing. To apply escalation in construction project, it should be considered in two levels which are historic and future (Squire, 2008). From historic escalation are such bid results, price indexes, price comparisons and cost record. For future escalation data, it can be found from assessed forecast which attempts to anticipate cost. Hence, it is important to find the way to handle with uncertain material prices in construction.
Squire (2008) stated that in construction, the price fluctuation comprises material, labor, equipment, overhead costs and fees. Cost management on projects becomes a particular challenge in a location where the economic climate is uncertain. In this circumstance, one of the significant consequences is uncertain construction price which can lead to many problems. Gallagher and Riggs (2006) stated that ripple effect of this price escalation has included numerous other impacts. For example, the first impact is putting project on hold while supplemental funding is sought. Second, the alternative of canceling the project if additional money is not available is chosen. Third, scale-down the project scope is attempting to be proceeded. Therefore, the price fluctuation can create enormous difficulty in the construction industry.
Ms. Piyachat Thaveelert made a survey on Construction Management Practices under Material Price Fluctuation to (1) investigate the situation of material price fluctuation and its effects on the practice of construction contractors during each stage namely estimating, bidding and construction stage; (2) identify the existing practices of how contractor strategically do to the situation and indicate interrelationships among practices; and (3) propose recommendation on how to handle the situation of construction price fluctuation.
Ms. Thaveelert found out that construction industry in Thailand usually confronts with the situation of material price fluctuation. Since the materials normally cost at the highest proportion of total cost, the situation of material price fluctuation becomes severe for construction industry. At this point, the appropriate management under material price fluctuation should be found out and investigated in order to be able to handle with the situation.
Her thesis abstract is copied and posted.
ABSTRACT
A construction management is very important for a construction project. To be a successful project, it requires an appropriate management from contractors to cope with especially the situation in construction industry that is unaccustomed. According to the recent record, it has been found that construction industry faced with the situation of material price fluctuation. Due to the material cost usually consumes the highest proportion in the construction cost, it is very significant for contractors to know how to handle with the situation. This research aims to investigate the existing of construction management practices under the construction material price fluctuation and propose the recommendation to respond to the situation.
The study uses a questionnaire as a research instrument to explore the existing practices of contractors. Two statistic methods were mainly used to analyze data from questionnaire surveys. The first analysis was descriptive analysis which used means and rankings to analyze. Second, the hypothesis testing was used to compare practices of the Bill of Quantity making and, procurement and employment among three groups of respondents. Those respondents are contractors focusing on private owners, public owners and both owners. In addition, another hypothesis testing was to compare practices relating to contract conditions between private owners and public owners through contractors’ perceptions. At his point, the correlation between groups of contractors was also tested through the hypothesis testing of correlation. Finally, the factor analysis was carried out to find out the interrelationship among practices by grouping the variables.
Result were found that for the Bill of Quantity making process, contractors prefer to find out the price trend by discussing the price trend with their suppliers with the highest mean. For the procurement and employment of contractors, contractors need to pay more attention on supplier selection process with the highest mean. For practices on contract conditions, it showed that the practice of the Specifying contract condition relating to furnishing materials clearly has the highest level of practice in private owners. In public owners, the Reasonable advance payment has the highest level of practice. The correlation between these two groups is also high positive correlation for practices on contract conditions. Last, the result of factor analysis showed that interrelationships of practices and it could be categorized into eight groups: Negotiating with Owners, Subcontractor Pricing Agreement, Government Pricing Index, Material Price Risk, Proactive Cost Control, Contractors’ Historical Data, Contractor Procurement Strategy and Estimate Pricing.
Thursday, 25 June 2009
Ms. Htet Htet Shein Joined Ch. Kranchang
Ms. Htet Htet Shein (CEIM 2009 from Myanmar) has joined Ch. Kranchang Contractor.
Congratulations!
Hadikusumo
Congratulations!
Hadikusumo
Ms. Piyachart Thaveelert Joined Foster Wheeler
Dear All,
Ms. Piyachart Thaveelert (CEIM 2009) informed me that she is now joining Foster Wheeler, oil and gas construction company in Rayong.
Congratulations!
Hadikusumo
Ms. Piyachart Thaveelert (CEIM 2009) informed me that she is now joining Foster Wheeler, oil and gas construction company in Rayong.
Congratulations!
Hadikusumo
Mr. Surapong Panja and Ms. Rahongsree Prayongrut Joined TEAM Consulting
Dear All
Mr. Surapong Panja and Ms. Rahongsree Prayongrut(CEIM 2009) have joined TEAM Consulting. They were recruited two months before they graduated from CEIM program.
Congratulations!
Hadikusumo
Mr. Surapong Panja and Ms. Rahongsree Prayongrut(CEIM 2009) have joined TEAM Consulting. They were recruited two months before they graduated from CEIM program.
Congratulations!
Hadikusumo
Mr. Andreas Adihartanto Joined Pakuwon Property Developer
Dear All
I received a phone call from Mr Andreas from Indonesia (CEIM'2008) that he joinned Pakuwon Property Developer in Jakarta.
Congratulations!
Hadikusumo
I received a phone call from Mr Andreas from Indonesia (CEIM'2008) that he joinned Pakuwon Property Developer in Jakarta.
Congratulations!
Hadikusumo
Mr. Raman Awale Joins SINOTHAI Contractor
I received an email from Mr Raman Awale (Nepalese, CEIM'2009). He will join with SINOTHAI starting July 2009.
Congratulation to Mr Raman Awale!
And many thanks to Mr Niraj Baidya (CEIM' 2005) who has been very active in recruiting our AIT alumni.
Regards
Hadikusumo
Congratulation to Mr Raman Awale!
And many thanks to Mr Niraj Baidya (CEIM' 2005) who has been very active in recruiting our AIT alumni.
Regards
Hadikusumo
Seminar in Can Tho Vietnam 22 June 2009 part 2
Posted by
Hadikusumo
Seminar in Can Tho Vietnam 22 June 2009 part 1
Participants attending our seminar
Dr. Hadikusumo and Ms Bich Hoa (AITVN)
Mr Pham Hong Linh - General Director of SouthWest Gas Pipeline 700 Km
I made a presentation about the roles of project management for project performance and organization. Then, I continued with explaining how to build project management competency in an organization.
In the seminar, Mr Pham Hong Linh - the General Director of SouthWest Pipeline 700 km, also attended the meeting and shared his experience on why project management is very important in large construction projects.
The seminar was attended by construction professionals from Cantho city and neighbouring area.
Posted by
Hadikusumo
Wednesday, 24 June 2009
RISK FACTORS INFLUENCING INTERNATIONAL CONSTRUCTION PROJECTS IN PAKISTAN
Construction is the second largest sector in Pakistan’s economy after agriculture. Roughly 30-35% of employment is directly or indirectly attached with the construction industry. In contrast to the prospective share of Pakistani construction in the local and global economic market, the development of the sector has not been at par with the market demands. Pakistan’s construction industry is still characterized as pressured and adversarial. Further, construction projects in Pakistan generally run over time and over budget; do not necessarily meet user expectations; and often require remedial works due to construction defects, with many conflicting issues, leading to project disputes and litigation.
Mr. Ahsem Maqsoom (M. Eng’g in CEIM) made a research to (1) understand the basic concepts involved in international construction business and their limitations; (2) study the reasons and characteristics for internationalization of firm; (3) study the problems and risks associated with international construction projects; (4) study the entry modes and formulation of healthy strategies for international construction business; (5) identify the risk factors influencing international construction projects in Pakistan
He found out that new opportunities are constantly growing as a result of globalization in construction sector. Construction firms want to have projects at international level. In every construction project, risks are present. Risks in international construction projects are more critical as compared to domestic projects especially when developing countries are involved. That’s why it is desirable for international construction firms who want to do construction projects in foreign country, to identify the risks as early as possible, so that suitable strategies can be made for the penetration in to the foreign construction market and to manage these risks before the actual execution of projects on international level.
Risk consequences in construction projects may reach an undesirable level because of inadequate resources and lack of advancements in technologies, therefore a thorough awareness and identification of risks is essential to prepare suitable strategies.
Mr. Maqsoom’s abstract is copied and posted.
Abstract
Globally construction companies are entering in an era of internationalization. This brings a need of developing and defining strategies to cope with the international demands of quality, risk and profit. Different models related to the international construction have been studied in context with the following issues.
• Globalization and construction industry development
• Characteristics of internationalization
• Risks or Obstacles associated with international Construction business
• Competitive advantage and strategies for international construction business
International construction projects have many risks involved due to the nature of their structure. There are more parties involved and more phases are present in international construction projects than a conventional construction project. Each party has its different objectives. This difference in the objectives of parties leads to conflict of interest which is a root cause of risks in international construction projects. An international construction adaption model has been developed in this research. This model had been applied on Pakistan construction industry to know the practical example of internationalization. The risks factors which influence the international construction business in Pakistan have been identified and then classified on country, construction industry and project bases. Some critical problems related to international construction projects have been indicated from these identified risks. Some recommendations have also been suggested to manage the critical risk for the success of international projects and development of international construction industry of Pakistan.
Mr. Ahsem Maqsoom (M. Eng’g in CEIM) made a research to (1) understand the basic concepts involved in international construction business and their limitations; (2) study the reasons and characteristics for internationalization of firm; (3) study the problems and risks associated with international construction projects; (4) study the entry modes and formulation of healthy strategies for international construction business; (5) identify the risk factors influencing international construction projects in Pakistan
He found out that new opportunities are constantly growing as a result of globalization in construction sector. Construction firms want to have projects at international level. In every construction project, risks are present. Risks in international construction projects are more critical as compared to domestic projects especially when developing countries are involved. That’s why it is desirable for international construction firms who want to do construction projects in foreign country, to identify the risks as early as possible, so that suitable strategies can be made for the penetration in to the foreign construction market and to manage these risks before the actual execution of projects on international level.
Risk consequences in construction projects may reach an undesirable level because of inadequate resources and lack of advancements in technologies, therefore a thorough awareness and identification of risks is essential to prepare suitable strategies.
Mr. Maqsoom’s abstract is copied and posted.
Abstract
Globally construction companies are entering in an era of internationalization. This brings a need of developing and defining strategies to cope with the international demands of quality, risk and profit. Different models related to the international construction have been studied in context with the following issues.
• Globalization and construction industry development
• Characteristics of internationalization
• Risks or Obstacles associated with international Construction business
• Competitive advantage and strategies for international construction business
International construction projects have many risks involved due to the nature of their structure. There are more parties involved and more phases are present in international construction projects than a conventional construction project. Each party has its different objectives. This difference in the objectives of parties leads to conflict of interest which is a root cause of risks in international construction projects. An international construction adaption model has been developed in this research. This model had been applied on Pakistan construction industry to know the practical example of internationalization. The risks factors which influence the international construction business in Pakistan have been identified and then classified on country, construction industry and project bases. Some critical problems related to international construction projects have been indicated from these identified risks. Some recommendations have also been suggested to manage the critical risk for the success of international projects and development of international construction industry of Pakistan.
Tuesday, 23 June 2009
Quantitative Risk Assessment for Offshore Platform Process System
Oil and gas industry is one of sectors that have high risks. It can range from minor to major events. For instance: oil leaks, gas leaks resulting to catastrophes like explosions, fires and oil spread. These disasters might cause fatality, injury, pollution, economic loss and even disruption of business. How can these accidents be prevented? How can the level of risk be assessed? And how can these things be handled or managed?
Mr. Nguyen Van Thanh made a case study on “Quantitative Risk Assessment for the Process System on an Offshore Platform: A Case Study Of QRA For Process System Of Platfrom RP-3 Of J.V. Vietsovpetro”. This project is a partial requirement for his Professional Masters degree in Construction Engineering and Infrastructure Management.
He concluded that:
(1) to evaluate and calculate the level of risk of a project, a factory or an offshore platform, the general formula that can be used is: R = F x C (where : R = Risk ; F = Frequency and C = Consequence). Based on the formula of risk, reduction of the consequence and reduction of the frequency are the two ways to reduce the risk.
(2) to reduce the consequence or frequency of risk, mitigation measures will be proposed if the risk value is higher compared with the risk criteria. The process system should be divided into the segments based on the properties, functions and working place.
(3) to assess the risk, the process system of platform RP-3 (Vietsovpetro Joint Venture) was divided into 8 segments based on their function, working condition and location. Comparing to the risk acceptance, the calculated risk in the process system of platform RP-3 is lower. Therefore, the risks are acceptable.
Mr. Nguyen Van Thanh’s abstract is copied and posted.
ABSTRACT
Quantitative Risk Assessment is a mean of objectively measuring the risks from hazardous activities of a facility or operation. The risks are qualified in terms of their probability and consequences. By comparison with a suitable risk criterion, the results can be used to help decide whether the facility is unacceptable or whether the improvements are necessary
This thesis attempts to explore the existing approaches of Quantitative Risk Assessment and apply this technique to offshore oil and gas industry, a very high risk sector, by proposing a frame work to conduct quantitative risk assessment for process system of offshore platforms.
Based on the given frame work, a case study will be performed to understand the effectiveness of “Quantitative risk assessment for process system of PR-3 offshore platform in Dragon oil field of Vietsovpetro J.V”
Mr. Nguyen Van Thanh made a case study on “Quantitative Risk Assessment for the Process System on an Offshore Platform: A Case Study Of QRA For Process System Of Platfrom RP-3 Of J.V. Vietsovpetro”. This project is a partial requirement for his Professional Masters degree in Construction Engineering and Infrastructure Management.
He concluded that:
(1) to evaluate and calculate the level of risk of a project, a factory or an offshore platform, the general formula that can be used is: R = F x C (where : R = Risk ; F = Frequency and C = Consequence). Based on the formula of risk, reduction of the consequence and reduction of the frequency are the two ways to reduce the risk.
(2) to reduce the consequence or frequency of risk, mitigation measures will be proposed if the risk value is higher compared with the risk criteria. The process system should be divided into the segments based on the properties, functions and working place.
(3) to assess the risk, the process system of platform RP-3 (Vietsovpetro Joint Venture) was divided into 8 segments based on their function, working condition and location. Comparing to the risk acceptance, the calculated risk in the process system of platform RP-3 is lower. Therefore, the risks are acceptable.
Mr. Nguyen Van Thanh’s abstract is copied and posted.
ABSTRACT
Quantitative Risk Assessment is a mean of objectively measuring the risks from hazardous activities of a facility or operation. The risks are qualified in terms of their probability and consequences. By comparison with a suitable risk criterion, the results can be used to help decide whether the facility is unacceptable or whether the improvements are necessary
This thesis attempts to explore the existing approaches of Quantitative Risk Assessment and apply this technique to offshore oil and gas industry, a very high risk sector, by proposing a frame work to conduct quantitative risk assessment for process system of offshore platforms.
Based on the given frame work, a case study will be performed to understand the effectiveness of “Quantitative risk assessment for process system of PR-3 offshore platform in Dragon oil field of Vietsovpetro J.V”
Monday, 22 June 2009
Transformational Style: The Highly Effective Leadership Style in Thai Construction Industry
In Thailand, the construction industry grown quickly especially in the infrastructure sector since the demand of the population on infrastructure is increasing. Construction is a project based industry and its success depends on several factors including the manager’s personality traits, competencies or necessary skills, and leadership styles which are appropriate for dealing with construction work have high impact on project outcomes.
Ms. Kedsuda Limsila conducted a case study on “Effective Leadership In The Construction Industry In Thailand“. This was focused mainly on the influence of project managers’ leadership styles on outcomes and was conducted in order to identify the most appropriate leadership style in the Thai construction industry.
She found out that:(1) in general, project managers in Thai construction projects apply a variety of leadership styles, most often adopted is the transformational style, followed by the transactional style and the laissez-faire style; (2) the entire range of behaviors of transformational project managers and contingent reward behavior from the transactional style are capable of generating leadership effectiveness, subordinate satisfaction and extra effort while the other leadership behaviors cannot; (3) in Thai construction projects, subordinates with extroversion personality tend to produce greater work effectiveness and exert extra effort whereas subordinates with conscientiousness and/or openness to experience personality tend to be satisfied with and exert extra effort into their work; (4) several independent factors affect the decision making of project managers in the process of selecting the leadership styles to apply to their subordinates. The more the factors with positive relationships appear, the higher the likelihood that project managers will select those related leadership behaviors whereas the other factors with negative relationships have the opposite effect; (5) several factors that positively affect leadership outcomes (effectiveness, satisfaction, extra effort, and commitment). Some factors have association with only one outcome whereas other factors have associations with several outcomes. The higher the level of the relevant factors present, the higher the degree to which leadership outcomes will occur.
Her results pointed out that leadership style mostly adopted in Thai construction projects is the transformational style since this is the most effective leadership style to apply with Thai subordinates.
Her Ph.D. dissertation abstract is copied and posted.
ABSTRACT
The success of a construction project depends on several important factors, one of which is the competence of its project manager. There are several issues regarding the project manager have impacts on project outcomes. Examples include the project manager’s leadership behaviours, personal attributes, and competencies or necessary skills which are appropriate for dealing with construction work. Consequently, there are many questions need answers regarding the competence of project managers and issues of effective project management. For instance, what is the most applied leadership style at the current time and what are the different outcomes from applying different leadership styles? What is the most appropriate leadership style? What are the necessary competencies of an effective project manager?
Consequently, this study was conducted to investigate the actual leadership behaviours and personal competencies of project managers. It also explored the key personality traits of subordinates in Thai construction projects. Specifically, this study examined how leadership behaviours, leader personal competencies and subordinate personality traits influence leadership outcomes (effectiveness; satisfaction; extra effort; commitment) and subordinates’ work performance (work quality; work quantity; problem solving creativity; teamwork and work discipline).
Leadership behaviors and outcomes were measured using Bass and Avolio’s (2004) Multifactor Leadership Questionnaire (MLQ), subordinates’ personalities were measured following the Five Factor Model whereas project manager’s personal competencies were measured following the Project Manager Competency Development (PMCD) defined by Project Management Institute (2002). During the data collecting process, data regarding the actual leadership behaviours, leadership outcomes and personal competencies of project managers in Thai construction projects were gathered from subordinate group whereas project managers provided the data on their subordinates’ key personalities and work performance level based on their opinion.
The findings of this study answer several questions on the top of this page that leadership style mostly adopted in Thai construction projects is the transformational leadership style. It further clarifies that this style is suitable for application with Thai people since it created leadership outcomes superior to the other styles (transactional style and laissez-faire style). In addition, transformational leadership supports subordinates to produce better work quality and work quantity. Moreover, the subordinates also tend to have high creativity in problem solving when working with transformational leaders.
Besides, the association between PMCD personal competencies and MLQ leadership behaviours revealed that the entire personal competencies defined by Project Management Institute have significant positive relationship with every factor in the transformational style but they have significant positive relationship with only contingent reward factor in the transactional style whilst having negative relationship with the laissez-faire style. It implies that project managers who apply transformational behaviours are likely to possess the necessary personal competencies required for competent project managers also.
Ms. Kedsuda Limsila conducted a case study on “Effective Leadership In The Construction Industry In Thailand“. This was focused mainly on the influence of project managers’ leadership styles on outcomes and was conducted in order to identify the most appropriate leadership style in the Thai construction industry.
She found out that:(1) in general, project managers in Thai construction projects apply a variety of leadership styles, most often adopted is the transformational style, followed by the transactional style and the laissez-faire style; (2) the entire range of behaviors of transformational project managers and contingent reward behavior from the transactional style are capable of generating leadership effectiveness, subordinate satisfaction and extra effort while the other leadership behaviors cannot; (3) in Thai construction projects, subordinates with extroversion personality tend to produce greater work effectiveness and exert extra effort whereas subordinates with conscientiousness and/or openness to experience personality tend to be satisfied with and exert extra effort into their work; (4) several independent factors affect the decision making of project managers in the process of selecting the leadership styles to apply to their subordinates. The more the factors with positive relationships appear, the higher the likelihood that project managers will select those related leadership behaviors whereas the other factors with negative relationships have the opposite effect; (5) several factors that positively affect leadership outcomes (effectiveness, satisfaction, extra effort, and commitment). Some factors have association with only one outcome whereas other factors have associations with several outcomes. The higher the level of the relevant factors present, the higher the degree to which leadership outcomes will occur.
Her results pointed out that leadership style mostly adopted in Thai construction projects is the transformational style since this is the most effective leadership style to apply with Thai subordinates.
Her Ph.D. dissertation abstract is copied and posted.
ABSTRACT
The success of a construction project depends on several important factors, one of which is the competence of its project manager. There are several issues regarding the project manager have impacts on project outcomes. Examples include the project manager’s leadership behaviours, personal attributes, and competencies or necessary skills which are appropriate for dealing with construction work. Consequently, there are many questions need answers regarding the competence of project managers and issues of effective project management. For instance, what is the most applied leadership style at the current time and what are the different outcomes from applying different leadership styles? What is the most appropriate leadership style? What are the necessary competencies of an effective project manager?
Consequently, this study was conducted to investigate the actual leadership behaviours and personal competencies of project managers. It also explored the key personality traits of subordinates in Thai construction projects. Specifically, this study examined how leadership behaviours, leader personal competencies and subordinate personality traits influence leadership outcomes (effectiveness; satisfaction; extra effort; commitment) and subordinates’ work performance (work quality; work quantity; problem solving creativity; teamwork and work discipline).
Leadership behaviors and outcomes were measured using Bass and Avolio’s (2004) Multifactor Leadership Questionnaire (MLQ), subordinates’ personalities were measured following the Five Factor Model whereas project manager’s personal competencies were measured following the Project Manager Competency Development (PMCD) defined by Project Management Institute (2002). During the data collecting process, data regarding the actual leadership behaviours, leadership outcomes and personal competencies of project managers in Thai construction projects were gathered from subordinate group whereas project managers provided the data on their subordinates’ key personalities and work performance level based on their opinion.
The findings of this study answer several questions on the top of this page that leadership style mostly adopted in Thai construction projects is the transformational leadership style. It further clarifies that this style is suitable for application with Thai people since it created leadership outcomes superior to the other styles (transactional style and laissez-faire style). In addition, transformational leadership supports subordinates to produce better work quality and work quantity. Moreover, the subordinates also tend to have high creativity in problem solving when working with transformational leaders.
Besides, the association between PMCD personal competencies and MLQ leadership behaviours revealed that the entire personal competencies defined by Project Management Institute have significant positive relationship with every factor in the transformational style but they have significant positive relationship with only contingent reward factor in the transactional style whilst having negative relationship with the laissez-faire style. It implies that project managers who apply transformational behaviours are likely to possess the necessary personal competencies required for competent project managers also.
Friday, 19 June 2009
MPM and CEIM Photo in AIT Main Campus Thailand
Hi all, i am attaching a photo taken in April 2009 in AIT Main Campus Thailand.
Professional Master in Project Management in Construction and CEIM students took photo at the NEW landmark of AIT in front of our administration building.
Dean Prof. Worsak, Dr. Hadikusumo, Dr Therathorn (Adjunct Faculty from Perfect Property), Mr Mike Woodward (Adjunct Faculty from Foster Wheeler) were participating in the photo.
This is a photo to remember our Green Campus in AIT Thailand.
Posted by
Hadikusumo
Thursday, 18 June 2009
NEGOTIATION ISSUES, STYLES AND OUTCOMES IN BUIDING CONSTRUCTION PROJECTS IN THAILAND
In construction industry, conflicts are inevitable in any construction projects.
Construction projects require that every parties are related in term of negotiation such project managers, safety managers, clients, suppliers, designers, site engineers, and consultants. Negotiation is one potential consequence to succeed projects when comparing with other factors. Many negotiators need to understand their personal characteristics for bargaining.
For any given issues, problem or conflict encountered, the participant has a negotiating position. Different construction projects have different conflict styles and different departments try to work together.
Mr. Surapong Panja made a case study on “Negotiation Issues, Styles, And Outcomes: A Study of Building Construction Projects in Thailand”. He learned that construction industry always has conflicts that can be attributes to more factors such as change order, variation work, job safety, price adjustment (inflation or deflation), and time extension. These factors can produce many conflicts itself and may contribute germination and manifestation. Dispute is always negotiated by project participants, and the process of negotiation is the first task before considering other resolution methods. The project manager of contractor tends to use avoiding style. It is suggested that it is more important for negotiation outcome to understand the proper negotiation style on each negotiation outcome in order to make beyond benefit to negotiation outcome with satisfaction.
His abstract is copied and posted here.
ABSTRACT
Negotiation is one potential process to make construction projects to succeed or fail. The negotiation between project participants is the first step to do businesses even construction industry, and it can take place all stages of construction projects. In negotiation process, the characters of project participants can affect to their behavior which can lead to resolve conflicts and outcome with satisfaction. Thus, the ability of project participants for negotiating effectively is a one essential success or failure. Weakness of negotiation can also affect to a sizable loss not only negotiator’s needs but also affect to other sides involve. Notwithstanding, understanding both the behavior of negotiation style, negotiation issues, and outcomes are valuable for practices and academics.
This study also emphasized on five aspects: (1) to study negotiation styles regarding with the project manager of consultant and contractor in the way they use negotiation styles. (2) To study what are important negotiation issues between the project manager of consultant and contractor those are important to both parties (contractors and consultants) and issues that are possible for value exchange in bidding and construction stage. (3) To find out the relationship between negotiation styles and negotiation outcomes. The questionnaire survey involved in thirty high-rises building projects.
Based on the results, the finding can suggest that different negotiation styles will affect to different negotiation outcomes, and what the negotiation style are appropriate with each negotiation outcome. The suitable negotiation style on negotiation outcome may be helpful to increase negotiation outcome. The understanding the strongest negotiation style can provide more beneficial as well as weakness styles can also provide drawback. Furthermore, the significant responsibility of project manager is to identify the important issues for one’s side, and another side may be less important issues which can apply to possible value exchange concept.
Construction projects require that every parties are related in term of negotiation such project managers, safety managers, clients, suppliers, designers, site engineers, and consultants. Negotiation is one potential consequence to succeed projects when comparing with other factors. Many negotiators need to understand their personal characteristics for bargaining.
For any given issues, problem or conflict encountered, the participant has a negotiating position. Different construction projects have different conflict styles and different departments try to work together.
Mr. Surapong Panja made a case study on “Negotiation Issues, Styles, And Outcomes: A Study of Building Construction Projects in Thailand”. He learned that construction industry always has conflicts that can be attributes to more factors such as change order, variation work, job safety, price adjustment (inflation or deflation), and time extension. These factors can produce many conflicts itself and may contribute germination and manifestation. Dispute is always negotiated by project participants, and the process of negotiation is the first task before considering other resolution methods. The project manager of contractor tends to use avoiding style. It is suggested that it is more important for negotiation outcome to understand the proper negotiation style on each negotiation outcome in order to make beyond benefit to negotiation outcome with satisfaction.
His abstract is copied and posted here.
ABSTRACT
Negotiation is one potential process to make construction projects to succeed or fail. The negotiation between project participants is the first step to do businesses even construction industry, and it can take place all stages of construction projects. In negotiation process, the characters of project participants can affect to their behavior which can lead to resolve conflicts and outcome with satisfaction. Thus, the ability of project participants for negotiating effectively is a one essential success or failure. Weakness of negotiation can also affect to a sizable loss not only negotiator’s needs but also affect to other sides involve. Notwithstanding, understanding both the behavior of negotiation style, negotiation issues, and outcomes are valuable for practices and academics.
This study also emphasized on five aspects: (1) to study negotiation styles regarding with the project manager of consultant and contractor in the way they use negotiation styles. (2) To study what are important negotiation issues between the project manager of consultant and contractor those are important to both parties (contractors and consultants) and issues that are possible for value exchange in bidding and construction stage. (3) To find out the relationship between negotiation styles and negotiation outcomes. The questionnaire survey involved in thirty high-rises building projects.
Based on the results, the finding can suggest that different negotiation styles will affect to different negotiation outcomes, and what the negotiation style are appropriate with each negotiation outcome. The suitable negotiation style on negotiation outcome may be helpful to increase negotiation outcome. The understanding the strongest negotiation style can provide more beneficial as well as weakness styles can also provide drawback. Furthermore, the significant responsibility of project manager is to identify the important issues for one’s side, and another side may be less important issues which can apply to possible value exchange concept.
Wednesday, 17 June 2009
CORRELATION BETWEEN PERSONALITY AND JOB PERFORMANCE
People are now considered as one of the factors that sustain advantage in an increasing globally work oriented competition among organizations. Human Resources (HR) are appreciated as an asset to corporate success, among other factors because its functions cover a wide range of activities which are required for different skills.
Construction compared with other organizations has the highest degree of applying HR for all hierarchical levels and one of the largest global employment sectors, providing work for a significant proportion of the labor market and accounting for a significant share of the world gross domestic product.
Human Resources in a labor construction have many varieties; from top to bottom; comes from different backgrounds; and have various skills and diverse aptitudes that make difficulty in controlling them. Therefore, construction companies must have appropriate Human Resources Planning (HRP).
Ms. Swe Zin Myint conducted a case study in “The Relationships Between Personality and Job Performance in Myanmar Construction Projects”. The analysis result of his study shows that there are correlations between personality and job performance of respondents who work in construction sites. He found out that (1) conscientiousness and integrity play crucial role in managers’ personality trait because it is related with most of managers’ job performance categories by positive correlation. Therefore, in recruiting for manager’s position, the employers must check the applicants’ personality traits especially in conscientiousness (2) Organizational factors influence more than the personality factors level to job performance. Therefore, employers better manage HR in an effective way to get high performance from them. The employers can recruit employees by testing their personality required for the job and if the personality is not fit with the HR job position or job performance, employers can exert effort to increase it by providing organizational factors.
His thesis abstract is copied and posted.
ABSTRACT
In order to achieve the success, every organization has to metain their competitive strategy by modifying it according to rapidly growth of technology. There are many strategies to overwhelm competitors but all of them are based on human resources (HR). Consequently, one of the important factors to have proper human resource management is their personality traits. This study intends to investigate the relationship between personality and job performance of HR in construction to manage HR effectively by achieving high performance. A survey for the study was conducted in Yangon, the previous capital city of Myanmar and target on manager, site engineer and site supervisor of ongoing construction projects. The study indicated that not only correlation of personality and job performance but also fundamental personality traits for manager especially for human resource management. Moreover, it also compared the influential level of personality traits and organizational factors on job performance.
Construction compared with other organizations has the highest degree of applying HR for all hierarchical levels and one of the largest global employment sectors, providing work for a significant proportion of the labor market and accounting for a significant share of the world gross domestic product.
Human Resources in a labor construction have many varieties; from top to bottom; comes from different backgrounds; and have various skills and diverse aptitudes that make difficulty in controlling them. Therefore, construction companies must have appropriate Human Resources Planning (HRP).
Ms. Swe Zin Myint conducted a case study in “The Relationships Between Personality and Job Performance in Myanmar Construction Projects”. The analysis result of his study shows that there are correlations between personality and job performance of respondents who work in construction sites. He found out that (1) conscientiousness and integrity play crucial role in managers’ personality trait because it is related with most of managers’ job performance categories by positive correlation. Therefore, in recruiting for manager’s position, the employers must check the applicants’ personality traits especially in conscientiousness (2) Organizational factors influence more than the personality factors level to job performance. Therefore, employers better manage HR in an effective way to get high performance from them. The employers can recruit employees by testing their personality required for the job and if the personality is not fit with the HR job position or job performance, employers can exert effort to increase it by providing organizational factors.
His thesis abstract is copied and posted.
ABSTRACT
In order to achieve the success, every organization has to metain their competitive strategy by modifying it according to rapidly growth of technology. There are many strategies to overwhelm competitors but all of them are based on human resources (HR). Consequently, one of the important factors to have proper human resource management is their personality traits. This study intends to investigate the relationship between personality and job performance of HR in construction to manage HR effectively by achieving high performance. A survey for the study was conducted in Yangon, the previous capital city of Myanmar and target on manager, site engineer and site supervisor of ongoing construction projects. The study indicated that not only correlation of personality and job performance but also fundamental personality traits for manager especially for human resource management. Moreover, it also compared the influential level of personality traits and organizational factors on job performance.
Congratulation for Mr Nguyen Van Diep, CEIM/MPM Vung Tau
Dear Mr Nguyen Van Diep (CEIM/MPM 08)
We would like to congratulate you with your new promotion as the Deputy of General Director of PTSC-OS (Petrovietnam Technical Service Offshore Servive - Tong cong ty dich vu ky thuat dau khi- Cong ty Dich vu khai thac bien) ( ma tren TT chung khoan- PVS).
We wish you successfull with your new position.
We are proud of your achievement.
Regards
Hadikusumo
We would like to congratulate you with your new promotion as the Deputy of General Director of PTSC-OS (Petrovietnam Technical Service Offshore Servive - Tong cong ty dich vu ky thuat dau khi- Cong ty Dich vu khai thac bien) ( ma tren TT chung khoan- PVS).
We wish you successfull with your new position.
We are proud of your achievement.
Regards
Hadikusumo
Congratulation for Mr Nguyen Khoa, CEIM/MPM Vung Tau
Dear Mr Khoa (CEIM/MPM 2008)
CEIM family would like to congratulate you with your new position as the Deputy of General Director of PVC-IC (Petro Vietnam Construction - Industrial Construction Tong cong ty thiet ke va xay lap dau khi-Cong ty IC)
We are proud of you, Mr Khoa.
We wish you successfull with your new position.
Regards
Hadikusumo
CEIM family would like to congratulate you with your new position as the Deputy of General Director of PVC-IC (Petro Vietnam Construction - Industrial Construction Tong cong ty thiet ke va xay lap dau khi-Cong ty IC)
We are proud of you, Mr Khoa.
We wish you successfull with your new position.
Regards
Hadikusumo
PROBLEMS AND PRACTICES IN EPC PROJECT MANAGEMENT
EPC projects face many challenges to stay in the competitive world despite of the efforts made towards compressing activities by phase overlapping, in order to reduce time scale and to obtain better EPC projects. These project challenges lead to cost overrun and schedule delay.
But what are the specific factors and problems in EPC Projects; and the effective Project Management (PM) practices especially on petrochemical and oil and gas EPC projects in Thailand?
Mr. Raman Awale made a case study on “Problems and Practices in EPC Project Management: A Case Study on Petrochemical, Oil and Gas EPC Projects in Thailand”. His study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment; lack of EPC contractor’s experience, lack or poor coordination and communication between Client, contractor and suppliers resulting to late approvals; poor planning and controlling; lack of top management commitment and unrealistic project scheduling.
His full abstract is copied and posted here.
ABSTRACT
EPC (Engineering, Procurement and Construction) projects are highly schedule driven where phases are overlapped to complete the project as early as possible. Moreover, these EPC projects are massive, utilize high skill and well train employee, acquires complex and complicated methodology/technology, needs fast information flow between different phases and close collaboration of multidiscipline as well. EPC projects are facing serious problems like crew idleness, rework and management dilemma which lead to cost overrun and schedule delay. Hence, this study aims to explore effective project management practices and problems faced in EPC projects especially on petrochemical and oil and gas EPC projects in Thailand, such that necessary proactive planning can be performed before to conduct such project effectively.
Methodology consists of three steps - pilot survey, interview approach and case study approach. Interview Approach (adjusted Grounded Theory Approach) is purposed to find out the significant delay and success factors together with effective management practices from various factors collected from literature review and pilot survey. Later, case study approach is used to validate the information gathered previously and to understand the relation and consequences of each factor in real situation. The respondent and interviewee were chief civil engineer, deputy chief engineer, director, project managers, construction manager, project engineers, process engineer, vice presidents, (Professional Experts) etc from 15 different EPC companies (9 Client companies and 6 Contractor companies).
The study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment such as material shortage, procurement delay, or late delivery on site. Besides, delay in placing purchase order, design changes, lack of EPC contractor’s experience, late approvals, vendor information coming in late and further most due to the lack of coordination between Client, contractor and suppliers regarding exchange of information are other factors contributing cost overrun and schedule delay.
In addition, poor planning and controlling, lack of top management commitment, unrealistic project scheduling and poor coordination and communication are poor project management practices explored. However, subcontractor management and control mechanism, lesson learnt practice, involvement of construction and operational personnel during conceptual phase are success project management practice found. Furthermore, interface management and control, integrated team management, real time reaction, dispute management, risk management, stakeholder management, continuous and dynamic detail planning and monitoring during execution and being proactive to issues, carrots and sticks approach (incentive criteria), clear roles and responsibilities, etc are also the big concerns in terms of project management practice regarding controlling cost overrun and schedule delay.
The findings from this study can be helpful to EPC contractors, owners, investors, project managers, construction managers, engineers and other construction stakeholders to understand the major factors, causes and problems related to phase overlapping of EPC process. This will guide them in developing and adopting necessary effective and efficient project management practice to conduct EPC projects on cost, on schedule with good quality providing clients satisfaction and safety measures. This research can be viewed as a lesson learned approach.
Keywords: EPC Projects, Phase Overlap, Delay and Success Factors, Project Management Practice, Long Lead Items, Scope Changes, Lesson Learned
But what are the specific factors and problems in EPC Projects; and the effective Project Management (PM) practices especially on petrochemical and oil and gas EPC projects in Thailand?
Mr. Raman Awale made a case study on “Problems and Practices in EPC Project Management: A Case Study on Petrochemical, Oil and Gas EPC Projects in Thailand”. His study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment; lack of EPC contractor’s experience, lack or poor coordination and communication between Client, contractor and suppliers resulting to late approvals; poor planning and controlling; lack of top management commitment and unrealistic project scheduling.
His full abstract is copied and posted here.
ABSTRACT
EPC (Engineering, Procurement and Construction) projects are highly schedule driven where phases are overlapped to complete the project as early as possible. Moreover, these EPC projects are massive, utilize high skill and well train employee, acquires complex and complicated methodology/technology, needs fast information flow between different phases and close collaboration of multidiscipline as well. EPC projects are facing serious problems like crew idleness, rework and management dilemma which lead to cost overrun and schedule delay. Hence, this study aims to explore effective project management practices and problems faced in EPC projects especially on petrochemical and oil and gas EPC projects in Thailand, such that necessary proactive planning can be performed before to conduct such project effectively.
Methodology consists of three steps - pilot survey, interview approach and case study approach. Interview Approach (adjusted Grounded Theory Approach) is purposed to find out the significant delay and success factors together with effective management practices from various factors collected from literature review and pilot survey. Later, case study approach is used to validate the information gathered previously and to understand the relation and consequences of each factor in real situation. The respondent and interviewee were chief civil engineer, deputy chief engineer, director, project managers, construction manager, project engineers, process engineer, vice presidents, (Professional Experts) etc from 15 different EPC companies (9 Client companies and 6 Contractor companies).
The study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment such as material shortage, procurement delay, or late delivery on site. Besides, delay in placing purchase order, design changes, lack of EPC contractor’s experience, late approvals, vendor information coming in late and further most due to the lack of coordination between Client, contractor and suppliers regarding exchange of information are other factors contributing cost overrun and schedule delay.
In addition, poor planning and controlling, lack of top management commitment, unrealistic project scheduling and poor coordination and communication are poor project management practices explored. However, subcontractor management and control mechanism, lesson learnt practice, involvement of construction and operational personnel during conceptual phase are success project management practice found. Furthermore, interface management and control, integrated team management, real time reaction, dispute management, risk management, stakeholder management, continuous and dynamic detail planning and monitoring during execution and being proactive to issues, carrots and sticks approach (incentive criteria), clear roles and responsibilities, etc are also the big concerns in terms of project management practice regarding controlling cost overrun and schedule delay.
The findings from this study can be helpful to EPC contractors, owners, investors, project managers, construction managers, engineers and other construction stakeholders to understand the major factors, causes and problems related to phase overlapping of EPC process. This will guide them in developing and adopting necessary effective and efficient project management practice to conduct EPC projects on cost, on schedule with good quality providing clients satisfaction and safety measures. This research can be viewed as a lesson learned approach.
Keywords: EPC Projects, Phase Overlap, Delay and Success Factors, Project Management Practice, Long Lead Items, Scope Changes, Lesson Learned
Saturday, 13 June 2009
“How does infrastructure relate to national development?”
Global infrastructure development clearly represents the world synchronization and globalization. Infrastructures play a major role to facilitate country’s logistic, communication and accesses to energy as an important part of national development.
Based on the IMD World Competitiveness Yearbook (2008) report, Thailand has climbed-up the global competitiveness ranking from thirty-third to twenty-seventh at the end of 2007. Thailand’s infrastructure ranking supported the fact that the development of infrastructure directly affect to national competitiveness and that the origin of each fast growing country is rooted from its well-managed infrastructure.
Mr. Kantanat Chaipermsak had just defended his case study on “Megaproject Development Relationships Among Stakeholders”. He concluded that infrastructures made their contributions to economic growth and poverty reduction. It is also vital to national development and affect to the national competitiveness. It has been proven that the mechanism of each fast growing country was running by the well-managed infrastructure since it supports country’s logistic, communication and accesses to energy.
This is his abstract.
ABSTRACT
Availability and efficiency of infrastructure contribute to economic growth and poverty reduction while the absence of adequate infrastructure services is one of the main problems that hinder the effort of development. In most developing countries, the demand of service infrastructures rising while existing infrastructures ranges of services are still far too scant. The problem might come from their readiness on such a big investment on infrastructure development. The potential megaproject development mechanism should be created in order to get people prepared and react firmly when the opportunity is coming. This research aims to find out how the megaproject development mechanism works.
The research has been conducted under the unique single-case study basis. The research began with factors identification in order to develop the megaproject development model. After the model has completed, Thai Landbridge megaproject has been selected to be analyzed. Data collection was performed by a data observing process in one of the Landbridge conceptual meeting. Data analysis has been conducted by using explanation building method in which all the observed information and important evidences have been revealed and explained.
Four key stakeholders’ activities have been analyzed. It was found that, most of the time, government and infrastructure investor always play key roles on the Landbridge project development mechanism while the business investors’ activities are mostly based on the key trade-related or commercial activities. By voluntarily involved in some part of the megaproject mechanism process, the communities had received their huge benefits as well.
Based on the IMD World Competitiveness Yearbook (2008) report, Thailand has climbed-up the global competitiveness ranking from thirty-third to twenty-seventh at the end of 2007. Thailand’s infrastructure ranking supported the fact that the development of infrastructure directly affect to national competitiveness and that the origin of each fast growing country is rooted from its well-managed infrastructure.
Mr. Kantanat Chaipermsak had just defended his case study on “Megaproject Development Relationships Among Stakeholders”. He concluded that infrastructures made their contributions to economic growth and poverty reduction. It is also vital to national development and affect to the national competitiveness. It has been proven that the mechanism of each fast growing country was running by the well-managed infrastructure since it supports country’s logistic, communication and accesses to energy.
This is his abstract.
ABSTRACT
Availability and efficiency of infrastructure contribute to economic growth and poverty reduction while the absence of adequate infrastructure services is one of the main problems that hinder the effort of development. In most developing countries, the demand of service infrastructures rising while existing infrastructures ranges of services are still far too scant. The problem might come from their readiness on such a big investment on infrastructure development. The potential megaproject development mechanism should be created in order to get people prepared and react firmly when the opportunity is coming. This research aims to find out how the megaproject development mechanism works.
The research has been conducted under the unique single-case study basis. The research began with factors identification in order to develop the megaproject development model. After the model has completed, Thai Landbridge megaproject has been selected to be analyzed. Data collection was performed by a data observing process in one of the Landbridge conceptual meeting. Data analysis has been conducted by using explanation building method in which all the observed information and important evidences have been revealed and explained.
Four key stakeholders’ activities have been analyzed. It was found that, most of the time, government and infrastructure investor always play key roles on the Landbridge project development mechanism while the business investors’ activities are mostly based on the key trade-related or commercial activities. By voluntarily involved in some part of the megaproject mechanism process, the communities had received their huge benefits as well.
Friday, 12 June 2009
How to Manage the Thailand’s Best Oil Refinery? Find out from Mr. Chalermchai Udomranu
Mr. Chalermchai Udomranu is a Vice President for Refining Project of the Bangchak Petroleum Public Company Limited in Thailand. He has more than 20 years experience in Bangchak’s oil refinery and accomplished a lot of projects.
To have knowledge of some techniques, around forty (40) students under the Professional Program Management program will be participating in his lecture in “Applied Project Management in Oil Refinery Project” which is scheduled from 24-26 July 2009 at Vung Tau City.
Mr. Chalermchai Udomranu’s Concise Background
Education
- Masters in Business Administration - Thammasat University, Bangkok (1993)
- Bachelor in Engineering (Electrical Engineering) - Chulalongkorn University, Bangkok (1982)
- Successfully enrolled in the following Refinery Improvement Projects,
- Plant 3 Restructuring Project
- Plant 2 Modification Project
- Gas Oil Hydrotreating Project
- Reformer Modification Project
- Sulfur Plant Project
Work Experience
- Vice President – Refining Project (Product Quality Improvement Project, PQIP) (2005-present)
- Senior Manager – Refining Project (2003-2004)
- Senior Manager – Technical Service Division (2002)
- Senior Manager – Maintenance Division (2001)
- Maintenance Division Manager (1997-2000)
- Engineering Division Manager (1994-1996)
- Electrical and Instrument Section Head (1993)
- Senior Project Engineer (1990-1992)
- Project Engineer (1985-1989)
To have knowledge of some techniques, around forty (40) students under the Professional Program Management program will be participating in his lecture in “Applied Project Management in Oil Refinery Project” which is scheduled from 24-26 July 2009 at Vung Tau City.
Mr. Chalermchai Udomranu’s Concise Background
Education
- Masters in Business Administration - Thammasat University, Bangkok (1993)
- Bachelor in Engineering (Electrical Engineering) - Chulalongkorn University, Bangkok (1982)
- Successfully enrolled in the following Refinery Improvement Projects,
- Plant 3 Restructuring Project
- Plant 2 Modification Project
- Gas Oil Hydrotreating Project
- Reformer Modification Project
- Sulfur Plant Project
Work Experience
- Vice President – Refining Project (Product Quality Improvement Project, PQIP) (2005-present)
- Senior Manager – Refining Project (2003-2004)
- Senior Manager – Technical Service Division (2002)
- Senior Manager – Maintenance Division (2001)
- Maintenance Division Manager (1997-2000)
- Engineering Division Manager (1994-1996)
- Electrical and Instrument Section Head (1993)
- Senior Project Engineer (1990-1992)
- Project Engineer (1985-1989)
Prof. Chritian Brockmann, CIB Helsinki Awardee, will give Lecture at Professional Masters in Project Management Program in Ho Chi Minh City, Vietnam
Prof. Dr. Christian Brockmann, who is an awardee, academician and researcher, will give a 3-day lecture (in practical aspect) in “Applied Project Management in Highway Project” from 26-28 June 2009 at Ho Chi Minh City.
Prof. Dr. Brockmann at present is a Professor in the University of Applied Sciences - Bremen, Germany and Stanford University. He teaches following courses:
- Introduction to Project Management
- Estimating / Accounting in Construction
- Organization in Construction
- Project Planning
- Construction Technology
- Construction Economics
- Introduction to Ecological Economics; and
- Research Methodology
Before he joined the universities, he was one of the top highway project managers. He is involved in many highway project including the Bangna Trad Expressway.
Christian will teach Professional Masters in Project Management (MPM) students in HCM. He will share his years of experience with MPM students.
Prof. Dr. Brockmann at present is a Professor in the University of Applied Sciences - Bremen, Germany and Stanford University. He teaches following courses:
- Introduction to Project Management
- Estimating / Accounting in Construction
- Organization in Construction
- Project Planning
- Construction Technology
- Construction Economics
- Introduction to Ecological Economics; and
- Research Methodology
Before he joined the universities, he was one of the top highway project managers. He is involved in many highway project including the Bangna Trad Expressway.
Christian will teach Professional Masters in Project Management (MPM) students in HCM. He will share his years of experience with MPM students.
Thursday, 11 June 2009
Benchmarking for Track Mechanized Maintenance System
Due to high fuel costs, commuters now a days prefer the railway mode of transit - in bringing them to work place and back to their homes.
But how these railway systems, which are usually owned and operated by the government, manage and maintain to provide the society and industry a dependable form of transportation?
Mr. Werayutdh Chuenchan prepared a case study which is entitled “Benchmarking for Track Mechanized Maintenance System: A case study of the State Railway of Thailand”.
This study is focused on the on-track mechanized maintenance in the SRT; identifying the advantages and disadvantages of general characteristics of railway contexts; the factors that affecting to time, cost, quality, and safety management of the on-track mechanized maintenance in the SRT; and applying the benchmarking concept to SRT track mechanized maintenance management.
He concluded that, in order to achieve the stated objectives, the understanding of general characteristics of railway contexts, on-track mechanized maintenance system and maintenance management concept are required. Then the principal of benchmarking is applied in finding the best practice of on-track maintenance management among the sections.
This is his abstract.
ABSTRACT
Presently, the State Railway of Thailand (SRT) faces a vast competition from the other transportation mode. If it is to survive as a viable mode it must considerably improve service quality and economic efficiency. The effectiveness and efficiency of railway maintenance system directly affects to railway service and its economy. To maintain a good performance of railway maintenance, the good management of track mechanized maintenance is required.
To apply the benchmarking methodology in order to find out the best practice of track mechanized maintenance, is a very effective tool that can assist the management in their pursuits of continuous improvement of their operations. Planning and executing consideration of track mechanized maintenance chief is one of measurement. Besides, working process management and working performance are also considered.
The results from the study show that quality consideration is the most significant for planning. Then safety, time, and cost are considered respectively. Once it executes the plan, the safety of their work is the most important. During working process, the supporting and cooperation from outside colleagues are required. The factors that affect to the cost performance of track mechanized maintenance section are labors cost, fuel cost, materials cost, and parts cost. The most affected factor is labor cost. The one, who has good performance in cost and time management, also gives high significant to time and cost planning. In other word, it is difficult to compare the working performance in term of quality if who is the best. Because of there are external factors that need to be considered such as the general characteristics of the railway contexts and collaboration of external colleagues.
Keywords; best practice, benchmarking, railway maintenance, track mechanized maintenance, working process, working performance
But how these railway systems, which are usually owned and operated by the government, manage and maintain to provide the society and industry a dependable form of transportation?
Mr. Werayutdh Chuenchan prepared a case study which is entitled “Benchmarking for Track Mechanized Maintenance System: A case study of the State Railway of Thailand”.
This study is focused on the on-track mechanized maintenance in the SRT; identifying the advantages and disadvantages of general characteristics of railway contexts; the factors that affecting to time, cost, quality, and safety management of the on-track mechanized maintenance in the SRT; and applying the benchmarking concept to SRT track mechanized maintenance management.
He concluded that, in order to achieve the stated objectives, the understanding of general characteristics of railway contexts, on-track mechanized maintenance system and maintenance management concept are required. Then the principal of benchmarking is applied in finding the best practice of on-track maintenance management among the sections.
This is his abstract.
ABSTRACT
Presently, the State Railway of Thailand (SRT) faces a vast competition from the other transportation mode. If it is to survive as a viable mode it must considerably improve service quality and economic efficiency. The effectiveness and efficiency of railway maintenance system directly affects to railway service and its economy. To maintain a good performance of railway maintenance, the good management of track mechanized maintenance is required.
To apply the benchmarking methodology in order to find out the best practice of track mechanized maintenance, is a very effective tool that can assist the management in their pursuits of continuous improvement of their operations. Planning and executing consideration of track mechanized maintenance chief is one of measurement. Besides, working process management and working performance are also considered.
The results from the study show that quality consideration is the most significant for planning. Then safety, time, and cost are considered respectively. Once it executes the plan, the safety of their work is the most important. During working process, the supporting and cooperation from outside colleagues are required. The factors that affect to the cost performance of track mechanized maintenance section are labors cost, fuel cost, materials cost, and parts cost. The most affected factor is labor cost. The one, who has good performance in cost and time management, also gives high significant to time and cost planning. In other word, it is difficult to compare the working performance in term of quality if who is the best. Because of there are external factors that need to be considered such as the general characteristics of the railway contexts and collaboration of external colleagues.
Keywords; best practice, benchmarking, railway maintenance, track mechanized maintenance, working process, working performance
Tuesday, 9 June 2009
List of New Graduates (May 2009)
Construction, Engineering and Infrastructure Management
No. * Name * Country * Degree
1 . Kedsuda Limsila , Thailand - D. Eng'g
2 . Raman Awale , Nepal - M. Eng'g
3 . Pichaya Bhanubhak , Thailand - M. Eng'g
4 . Dam Thanh Binh , Vietnam - M. Eng'g
5 . Kantanat Chaipermsak , Thailand - M. Eng'g
6 . Werayutdh Chuenchana , Thailand - M. Eng'g
7 . Tran Viet Dung , Vietnam - M. Eng'g
8 . Aung Myo Hein , Myanmar - M. Eng'g
9 . Panwimon Jornjaran , Thailand - M. Eng'g
10 . Kriangsak Kiatkittikorn , Thailand - M. Eng'g
11 . Ahsen Maqsoom , Pakistan - M. Eng'g
12 . Swe Zin Myint , Myanmar - M. Eng'g
13 . Nguyen Viet Nhan , Vietnam - M. Eng'g
14 . Tran Duc Nhat , Vietnam - M. Eng'g
15 . Surapong Panja , Thailand - M. Eng'g
16 . Rahongsree Prayongrut , Thailand - M. Eng'g
17 . Thotsaphol Rattananapalai, Thailand - M. Eng'g
18 . Htet Htet Shein , Myanmar - M. Eng'g
19 . Korakade Thamphongsri , Thailand - M. Eng'g
20 . Piyada Thanarojsakul , Thailand - M. Eng'g
21 . Piyachat Thaveelert , Thailand - M. Eng'g
22 . Pham Vuong Trung , Vietnam - M. Eng'g
23 . Le Quang Tuan , Vietnam - M. Eng'g
Project Management in Construction
1 . Ngo Duc Binh , Vietnam - Professional Master
No. * Name * Country * Degree
1 . Kedsuda Limsila , Thailand - D. Eng'g
2 . Raman Awale , Nepal - M. Eng'g
3 . Pichaya Bhanubhak , Thailand - M. Eng'g
4 . Dam Thanh Binh , Vietnam - M. Eng'g
5 . Kantanat Chaipermsak , Thailand - M. Eng'g
6 . Werayutdh Chuenchana , Thailand - M. Eng'g
7 . Tran Viet Dung , Vietnam - M. Eng'g
8 . Aung Myo Hein , Myanmar - M. Eng'g
9 . Panwimon Jornjaran , Thailand - M. Eng'g
10 . Kriangsak Kiatkittikorn , Thailand - M. Eng'g
11 . Ahsen Maqsoom , Pakistan - M. Eng'g
12 . Swe Zin Myint , Myanmar - M. Eng'g
13 . Nguyen Viet Nhan , Vietnam - M. Eng'g
14 . Tran Duc Nhat , Vietnam - M. Eng'g
15 . Surapong Panja , Thailand - M. Eng'g
16 . Rahongsree Prayongrut , Thailand - M. Eng'g
17 . Thotsaphol Rattananapalai, Thailand - M. Eng'g
18 . Htet Htet Shein , Myanmar - M. Eng'g
19 . Korakade Thamphongsri , Thailand - M. Eng'g
20 . Piyada Thanarojsakul , Thailand - M. Eng'g
21 . Piyachat Thaveelert , Thailand - M. Eng'g
22 . Pham Vuong Trung , Vietnam - M. Eng'g
23 . Le Quang Tuan , Vietnam - M. Eng'g
Project Management in Construction
1 . Ngo Duc Binh , Vietnam - Professional Master
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