Generally, infrastructure engineers and planners encounter problems when they engage in planning for operations in both long term and short term projects. In order to make a successful decision, it is the most important concern to apply efficient and effective process of how different objectives, facilities and functions are evaluated. In addition, they need to think properly how measures of value or worth are placed on the various alternatives (Li and Sinha, 2004). The main objective of a decision-making process is to maximize the benefits as well as minimize the cost. As highway management system includes various facilities, objectives and functions having different measurement scales, the benefits under different dimensions are measured into different units that make the decision-making process more complex. To diminish this complexity, all the units of benefits are needed to convert into a non-dimensional uniform unit so that decision-making action can be implemented under same platform (Li and Sinha, 2004).
At present, infrastructure maintenance and rehabilitation decision-making for both network and project level is based on current measured and future predicted facilities conditions (Madanat et al., 1997). However decision-making in highway management is a complex process due to limited budget constraint and multiple criteria of influencing factors. In Thailand, there are still some decision-making processes of highway management. It needs to evaluate the performance and effectiveness of those processes whether all objectives are fulfilled or some objectives are violated. Although, highway management system consists of several operational functions, maintenance is the most important function for highway management system where necessary infrastructures have already been constructed. In addition, highway management system includes various objectives such as service, condition, cost, safety, socioeconomic factors, energy etc. So, it is required to know the amount of their influences in decision-making. For this reason, weighting factors of all objectives should be identified so that they can be easily used in any calculation of decision-making. Moreover, objectives are influenced by some performance indicators such as ADT, lane width, shoulder width, travel speed, skid resistance for safety, IRI for condition, population for socioeconomic demand etc. Therefore, to develop the utility function, those performance indicators and their influences are required to know.
If utility function and weighting factor of each individual are identified, function would give a non-dimensional unit. After accumulating all the utility functions, it might be easy to rank them for making a decision. If a decision-making process concerns all the criteria, it would be efficient and effective for any management system. So, all countries including Thailand should have an effective multi-criteria decision-making process for highway management system.
Mr. Mohammad Mamunur Rashid, made a study which tried to develop and introduce utility functions for various objectives and their performance indicators of highway management system. In addition to this utility function, weighting factors of individual objectives in different facilities provides a non-dimensional output so that planners or decision makers can use those functions for decision-making about a suitable action in highway management system.
The main objective of his study was to develop a multi-criteria decision-making process for highway management system. The basis of decision-making is to maximize the overall benefits as well as to minimize the cost within available resources. In order to achieve the main objective in a systematic and sequential manner, secondary objectives were to : (1) overview the existing decision-making process and accumulating factors; (2) determine the facilities of highway management system and their objectives and factors which influence decision and their performance indicators as well as their weighting factors; (3) develop the utility functions of different performance indicators, objectives and facilities in highway management system; and (4) develop an overall decision-making process for the highway management system.
Conclusion
1. Overview of Existing Process
At the beginning of this study, some existing decision-making processes for the highway facilities maintenance operations were reviewed and it was found that the optimum treatment matrix of TPMS budgeting module is commonly used in Thailand for the pavement maintenance. For the other facilities such as bridge, roadside element and traffic control device, there is no specific decision-making process for the maintenance operation. According to the treatment matrix, maintenance decisions are made by using roughness index (IRI), major deterioration, minor deterioration and traffic volume (AADT). In addition to that there are several important factors such as structural capacity, noise level, cost, skid resistance etc. which are absence in this process. Therefore, it would be a better idea to have such a decision-making process that accumulates as many factors as possible.
2. Determination of Objectives, Performance Indicators and Weighting Factors
At the introductory stage of the questionnaire survey, this study deals in only the identification of objectives and their respective performance indicators that would be necessary for having a maintenance decision and planning. For all facilities, objectives are almost similar such as condition, service, safety, cost, socio-economic factors, energy etc. but those objectives have different performance indicators for different facilities.
Preliminary questionnaire survey was carried out in this study in order to achieve the goal for the identification of all the indicators. Questionnaire included some objectives and their performance indicators of four different facilities such as pavement, bridge, roadside elements and traffic control devices found from previous research and experts were allowed to select all possible necessary objectives and indicators in addition to add new factors that would be important. All the selected objectives and their indicators found from the preliminary questionnaire survey were enlisted as necessary factors and used for developing the final questionnaire.
Final questionnaire survey carried out in this study deals in two objectives such as the determination of the different weights of different objectives and performance indicators and development of utility function for every individual performance indicator. On the basis of the identified factors in the preliminary survey and having some brief interview of experts helped to develop the final questionnaire. In this study, the objective of the determination of relative weighting factors is to differentiate the influences of different objectives and their performance indicators in terms of numeric percentage value so that those can be used to make a decision.
3. Development of Utility Functions
Development of utility functions of different indicators that was the most important part of this study was finally achieved by the final questionnaire survey in two steps. Experts were asked to put relative utility values for different units of one performance indicators. Regression analysis that is one of the most reputed processes was used to have the best fitted equation accumulating the opinions of all experts for every different performance indicator.
The second step of the final questionnaire survey was carried out in the point of non-consistency. Sometimes, expert opinions were contradictory and to diminish this problem, they were asked only on that non-consistent issue. Finally, all the data were in the same trend and used for regression analysis.
4. Development of Overall Decision-making Process
Final decision for the prioritization in maintenance operation would be made accumulating all the weighting factors and utility functions of the performance indicators and objectives of respective facilities. The existing condition data and future predicted data after maintenance should be listed for every alternative. Total utility value of each alternative would be determined by the multiplication of utility values of performance indicators and their overall relative weighting factors. The summation of all multiplication provides the total utility value for each alternative. In another way, utility values found for every performance indicators of one alternative would be multiplied by the weights of the performance indicator in their respective objectives and the weights of the objectives. In this case, summation of all multiplication would provide the same value of total utility value. The main purpose of dividing the performance indicators into different objectives is to provide a breakdown structure so that the limitations can easily be identified and have some correction works effectively. Finally, accumulating all the total utility values, alternative having higher utility value should have the higher priority for the maintenance operations.
His thesis abstract is copied and posted.
ABSTRACT
An effective highway management system includes multi-dimensional features such as several numbers of facilities, operations and objectives. Therefore, the decision-making process in a highway management system is very complex interrelated with multiple dimensions. Moreover, measurement with non-commensurable units makes the process more difficult and complicated. Although having complexity in its decision-making process, it is present demand and very useful for an effective highway management system so that all objectives and dimensions can be fulfilled as closely as possible.
In general, pavements, bridges, roadside elements and traffic control devices are the facilities of highway management system that also includes various objectives such as service, condition, cost, safety, socioeconomic factors, energy etc. In addition, it includes several operations like planning, design, construction, condition evaluation, maintenance, improvement and data management. This study tries to develop a decision-making process for the maintenance operation only that would accumulate all the necessary objectives and their performance indicators in order to have an effective maintenance decision. As the measurement unit of different factors are different and it is very difficult to convert all the units into monitory terms, utility functions of various objectives and their performance indicators are developed that provide a non-dimensional output. Moreover, the influences of different factors are not equal for the maintenance operation. Therefore, weighting factors of all the objectives and their performance indicators are determined so that they can be easily used according to their influences in any decision-making. Finally, the decision-making process that accumulate all the weighting factors and utility functions would help the planners for getting an effective decision for appropriate maintenance operation of different facilities of highway management such as pavement, bridge, roadside elements and traffic control devices.
Tuesday, 23 March 2010
Monday, 22 March 2010
Assessing Safety Management Practices In The Bhutanese Construction Industry
The construction field is one of the most hazardous industrial fields. Construction accidents caused many human tragedies, de-motivate workers, disrupt site activities, delay project progress and adversely affect the overall cost, productivity and reputation of the construction industry (Mohamed, 1999). Constructions in developing countries have following important characteristics (Datta, undated):
- Engineering integrity and design flares in response to constrained availability of materials.
- Flexible industry in response to funding constraints.
- Labour force is willing and adaptable to difficult working conditions.
Construction industry in a developing country is also a major stakeholder of the economy. It is a source of employment at various levels of skills from manual labour to semiskilled, skilled and specialist workforce. As such, accidents which result in loss of lives and injuries can have devastating economic effect apart from the human cost of suffering an accident (Sawacha et al., 1999). The accident and fatality rate due to occupation is still high especially in developing countries, despite some progress made in tackling the traditional occupational safety and health problems (Basri, undated). It is estimated that the risk of accident in developing countries is 10-20 times higher than the industrialized countries.
Safety is considered a critical problem both in developed and developing countries (Enshassi, 1997) because safety on the job site is an important aspect of the overall safety in construction (Assaf and Jannadi, 1998). However, in most developing countries, including Bhutan, safety consideration in construction project delivery is not given a priority and employment of safety measures during construction is considered a burden (Mbuya and Lema, undated).
The construction industry in Bhutan is one of the fastest growing and largest employing industries. It is also one of the highest contributing sectors to the national GDP (about 12% at the end of 8FYP) next only to agriculture. However, the occupational safety and health in the construction industry in Bhutan is at the very basic level. It lacks in all the three fronts of Engineering, Education and Enforcement (“Three E’s of Safety”) of occupational safety and health. Safety concerns have been raised, of late, and earnest efforts are being made to promote safety and health in the Bhutanese construction industry. The industry, as such, needs information to assess the safety situation and accordingly plan and implement safe construction in Bhutan. Currently there is a genuine lack of data on safety on construction sites in Bhutan. Apparently, there are no systematic and organized studies conducted specifically on the safety aspects of the construction industry in Bhutan. Therefore, there is an urgent need to carry out studies/researches in order to assess the prevalent site safety management practices and procedures, and thereby help propose viable measures for reducing accidents and consequential damage in the Bhutanese construction industry.
Mr. Kin Dorji made a research study which assessed the existing safety management practices and perceptions in the Bhutanese construction industry. The outcome of the study established a baseline data of the safety aspects of the construction industry in Bhutan. The overall scenario of safety situations reflected in the study could also serve to facilitate the policy makers in formulating rules and regulations and safety programs appropriate to the construction industry in Bhutan.
His research are to: (1) evaluate the prevalent safety management practices and procedures in the construction industry in Bhutan; (2) identify safety problem factors in the Bhutanese construction industry and determine how the contractors and government perceive their importance; (3) develop a database on the safety management practices of the Bhutanese Contractors; and (4) propose a recommendation for the Bhutanese construction industry for improving the site safety management.
Conclusions
1. Prevalent site safety management practices and procedures in the construction industry in Bhutan.
The five key elements of a construction safety and health management system have been found to be practiced in varying degrees by the construction companies in Bhutan. Some of the major shortcomings and problems confronting the current site safety management practices in the Bhutanese construction industry have been highlighted below:
a. Policy
- Lack of safety regulations and standards
- Low priority of safety
b. Organizing
- Lack of competent manpower
c. Planning and Implementing
- Lack of safety and health training
- Lack of safety promotion
d. Measuring performances
- Lack of data on safety on construction sites
e. Reviewing performances
- Lack of documented and organized safety management system
2. Perceptions of site safety management problems in the construction industry in Bhutan.
The study has revealed that the contractors and the relevant government organizations in Bhutan generally agree on the ranking order of the factors attributable to site safety management problems in the Bhutanese construction industry based on their importance. It means that the perceptions of the site safety management problems in the Bhutanese construction industry between the contractors and the relevant government organizations are the same. They have a common understanding of the safety problems which is very crucial for successful implementation of any safety measures in the Bhutanese construction industry. With this common understanding of the safety problems, the government would be in a position to understand the gaps and priority needs in the safety management practices of the contractors and accordingly adopt measures that would be appropriate and effective to contractors.
3. Database development on the site safety management practices of the construction companies in Bhutan.
A sample database has been developed using Microsoft Access software based on the data collected for the study. As a part of this study, it is a modest contribution to the Royal government of Bhutan. The database is targeted for use by the relevant government regulatory agencies concerned with occupational health and safety administration in the Bhutanese construction industry. It is a useful utility for storing and retrieving information on the safety management practices of the construction companies in Bhutan. However, the sample database is seriously handicapped due to lack of information on safety on construction sites in Bhutan. The database system consists of the following information: i) General information of the construction companies in Bhutan; ii) Safety organizing like safety policy, provision of safety budget, safety representatives and committees, etc. iii) Safety planning and implementing like safety meetings, inspections, and trainings, etc. and iv) accident information like number and type of accidents, and their costs.
Recommendations for safe construction in Bhutan
1. Safety legislations and corresponding regulations: Health and safety legislation supported by a regulating body is non existent in Bhutan. As such, there is ever growing need for realistic safety legislative standards to enforce safety in construction. Therefore, the establishment of a safety body or institution supporting the safety legislations would go a long way in improving the safety situation in the Bhutanese construction industry.
2. Safety awareness: The level of safety awareness among the construction industry personnel is very poor in Bhutan. Improved safety awareness can be created by promoting and communicating safety to the people in the construction industry through safety and health trainings, workshops and seminars, incentive programs, and safety campaigns through public media. Such education and training needs could be addressed by introducing safety chapters in the academic engineering institutions as well as the construction training institutes and centres in the country. Special safety literatures and training materials could also be published by the concerned agencies in the government.
3. Safety incentives: Safety will not improve unless there is a demand or incentive provided to the contractors (Larchar and Sohail, 1999). So, where the main concern of a contractor is how to save money and reduce costs (Kartam et al., 2000), the initiative for improved safety must come from the client. The clients should insist on having safety measures at the construction sites by incorporating the specific terms and conditions for safety provisions in the project contract documents.
Apart from this client oriented safety improvement measures the national Insurance companies in Bhutan could also play a vital role in improving safety in construction by varying the current fixed system of insurance premium payment for the contractors as per their record of safety performances. Such a step would encourage contractors to implement safety practices at their work sites.
4· Safety records: Currently there are no official sources for any information on safety on construction sites in Bhutan. There are no accident statistics and profiles, and safety reports available on the Bhutanese construction industry. As such, there is an immediate need to have an effective accident data collection system in place. The proposed safety department under the Ministry of Labor and Human Resources in Bhutan as discussed above could collect and compile data on safety on construction sites by distributing standardized data collection forms and formats to the construction companies.
5· Safety management practices: The current safety management practices of the contractors in Bhutan need to be drastically improved in terms of documentation and its effective implementations. It has to be manifested clearly in safety manuals and procedures. Standard forms and formats have to be used for safety inspections, accident investigations, accident reporting, and safety meetings, etc. for proper recordkeeping and follow-up actions. Above all top management’s awareness and support is vital for the successful implementation of the safety management system at the work sites.
His thesis abstract is copied and posted.
ABSTRACT
The construction field is considered one of the most hazardous industrial fields wherein the construction workers are more prone to accidents resulting in loss of lives and injuries. Studies have shown that these accidents in turn can have devastating effect on the construction industry both financially and in terms of humanitarian aspects. To this effect especially in the developed regions like UK and USA there are stricter legal enforcements to regulate safety and health in construction, and also implementation of safety management systems designed to minimize or eliminate accidents at work places. On the contrary, the occupational safety and health in construction is very poor in the developing regions like Bhutan where construction industry has a major share in the national economy.
This study evaluates the prevalent safety management practices and safety regulations, identifies factors affecting them, and also develops a sample database on the safety management practices in the construction industry in Bhutan. The study has been conducted on 40 sample construction companies and 14 officials in the government regulatory organizations relevant to construction industry in Bhutan by way of questionnaire surveys, interviews and discussions. There are many problems confronting the occupational safety and health in the construction industry in Bhutan. It was observed that some of the major gaps were: i) lack of safety regulations and standards, ii) low priority of safety, iii) lack of data on safety on construction sites, iv) lack of competent manpower, v) lack of safety and health training, vi) lack of safety promotion, and vii) lack of documented and organized safety management systems. Furthermore, the study also proposes some recommendations for safe construction in Bhutan.
- Engineering integrity and design flares in response to constrained availability of materials.
- Flexible industry in response to funding constraints.
- Labour force is willing and adaptable to difficult working conditions.
Construction industry in a developing country is also a major stakeholder of the economy. It is a source of employment at various levels of skills from manual labour to semiskilled, skilled and specialist workforce. As such, accidents which result in loss of lives and injuries can have devastating economic effect apart from the human cost of suffering an accident (Sawacha et al., 1999). The accident and fatality rate due to occupation is still high especially in developing countries, despite some progress made in tackling the traditional occupational safety and health problems (Basri, undated). It is estimated that the risk of accident in developing countries is 10-20 times higher than the industrialized countries.
Safety is considered a critical problem both in developed and developing countries (Enshassi, 1997) because safety on the job site is an important aspect of the overall safety in construction (Assaf and Jannadi, 1998). However, in most developing countries, including Bhutan, safety consideration in construction project delivery is not given a priority and employment of safety measures during construction is considered a burden (Mbuya and Lema, undated).
The construction industry in Bhutan is one of the fastest growing and largest employing industries. It is also one of the highest contributing sectors to the national GDP (about 12% at the end of 8FYP) next only to agriculture. However, the occupational safety and health in the construction industry in Bhutan is at the very basic level. It lacks in all the three fronts of Engineering, Education and Enforcement (“Three E’s of Safety”) of occupational safety and health. Safety concerns have been raised, of late, and earnest efforts are being made to promote safety and health in the Bhutanese construction industry. The industry, as such, needs information to assess the safety situation and accordingly plan and implement safe construction in Bhutan. Currently there is a genuine lack of data on safety on construction sites in Bhutan. Apparently, there are no systematic and organized studies conducted specifically on the safety aspects of the construction industry in Bhutan. Therefore, there is an urgent need to carry out studies/researches in order to assess the prevalent site safety management practices and procedures, and thereby help propose viable measures for reducing accidents and consequential damage in the Bhutanese construction industry.
Mr. Kin Dorji made a research study which assessed the existing safety management practices and perceptions in the Bhutanese construction industry. The outcome of the study established a baseline data of the safety aspects of the construction industry in Bhutan. The overall scenario of safety situations reflected in the study could also serve to facilitate the policy makers in formulating rules and regulations and safety programs appropriate to the construction industry in Bhutan.
His research are to: (1) evaluate the prevalent safety management practices and procedures in the construction industry in Bhutan; (2) identify safety problem factors in the Bhutanese construction industry and determine how the contractors and government perceive their importance; (3) develop a database on the safety management practices of the Bhutanese Contractors; and (4) propose a recommendation for the Bhutanese construction industry for improving the site safety management.
Conclusions
1. Prevalent site safety management practices and procedures in the construction industry in Bhutan.
The five key elements of a construction safety and health management system have been found to be practiced in varying degrees by the construction companies in Bhutan. Some of the major shortcomings and problems confronting the current site safety management practices in the Bhutanese construction industry have been highlighted below:
a. Policy
- Lack of safety regulations and standards
- Low priority of safety
b. Organizing
- Lack of competent manpower
c. Planning and Implementing
- Lack of safety and health training
- Lack of safety promotion
d. Measuring performances
- Lack of data on safety on construction sites
e. Reviewing performances
- Lack of documented and organized safety management system
2. Perceptions of site safety management problems in the construction industry in Bhutan.
The study has revealed that the contractors and the relevant government organizations in Bhutan generally agree on the ranking order of the factors attributable to site safety management problems in the Bhutanese construction industry based on their importance. It means that the perceptions of the site safety management problems in the Bhutanese construction industry between the contractors and the relevant government organizations are the same. They have a common understanding of the safety problems which is very crucial for successful implementation of any safety measures in the Bhutanese construction industry. With this common understanding of the safety problems, the government would be in a position to understand the gaps and priority needs in the safety management practices of the contractors and accordingly adopt measures that would be appropriate and effective to contractors.
3. Database development on the site safety management practices of the construction companies in Bhutan.
A sample database has been developed using Microsoft Access software based on the data collected for the study. As a part of this study, it is a modest contribution to the Royal government of Bhutan. The database is targeted for use by the relevant government regulatory agencies concerned with occupational health and safety administration in the Bhutanese construction industry. It is a useful utility for storing and retrieving information on the safety management practices of the construction companies in Bhutan. However, the sample database is seriously handicapped due to lack of information on safety on construction sites in Bhutan. The database system consists of the following information: i) General information of the construction companies in Bhutan; ii) Safety organizing like safety policy, provision of safety budget, safety representatives and committees, etc. iii) Safety planning and implementing like safety meetings, inspections, and trainings, etc. and iv) accident information like number and type of accidents, and their costs.
Recommendations for safe construction in Bhutan
1. Safety legislations and corresponding regulations: Health and safety legislation supported by a regulating body is non existent in Bhutan. As such, there is ever growing need for realistic safety legislative standards to enforce safety in construction. Therefore, the establishment of a safety body or institution supporting the safety legislations would go a long way in improving the safety situation in the Bhutanese construction industry.
2. Safety awareness: The level of safety awareness among the construction industry personnel is very poor in Bhutan. Improved safety awareness can be created by promoting and communicating safety to the people in the construction industry through safety and health trainings, workshops and seminars, incentive programs, and safety campaigns through public media. Such education and training needs could be addressed by introducing safety chapters in the academic engineering institutions as well as the construction training institutes and centres in the country. Special safety literatures and training materials could also be published by the concerned agencies in the government.
3. Safety incentives: Safety will not improve unless there is a demand or incentive provided to the contractors (Larchar and Sohail, 1999). So, where the main concern of a contractor is how to save money and reduce costs (Kartam et al., 2000), the initiative for improved safety must come from the client. The clients should insist on having safety measures at the construction sites by incorporating the specific terms and conditions for safety provisions in the project contract documents.
Apart from this client oriented safety improvement measures the national Insurance companies in Bhutan could also play a vital role in improving safety in construction by varying the current fixed system of insurance premium payment for the contractors as per their record of safety performances. Such a step would encourage contractors to implement safety practices at their work sites.
4· Safety records: Currently there are no official sources for any information on safety on construction sites in Bhutan. There are no accident statistics and profiles, and safety reports available on the Bhutanese construction industry. As such, there is an immediate need to have an effective accident data collection system in place. The proposed safety department under the Ministry of Labor and Human Resources in Bhutan as discussed above could collect and compile data on safety on construction sites by distributing standardized data collection forms and formats to the construction companies.
5· Safety management practices: The current safety management practices of the contractors in Bhutan need to be drastically improved in terms of documentation and its effective implementations. It has to be manifested clearly in safety manuals and procedures. Standard forms and formats have to be used for safety inspections, accident investigations, accident reporting, and safety meetings, etc. for proper recordkeeping and follow-up actions. Above all top management’s awareness and support is vital for the successful implementation of the safety management system at the work sites.
His thesis abstract is copied and posted.
ABSTRACT
The construction field is considered one of the most hazardous industrial fields wherein the construction workers are more prone to accidents resulting in loss of lives and injuries. Studies have shown that these accidents in turn can have devastating effect on the construction industry both financially and in terms of humanitarian aspects. To this effect especially in the developed regions like UK and USA there are stricter legal enforcements to regulate safety and health in construction, and also implementation of safety management systems designed to minimize or eliminate accidents at work places. On the contrary, the occupational safety and health in construction is very poor in the developing regions like Bhutan where construction industry has a major share in the national economy.
This study evaluates the prevalent safety management practices and safety regulations, identifies factors affecting them, and also develops a sample database on the safety management practices in the construction industry in Bhutan. The study has been conducted on 40 sample construction companies and 14 officials in the government regulatory organizations relevant to construction industry in Bhutan by way of questionnaire surveys, interviews and discussions. There are many problems confronting the occupational safety and health in the construction industry in Bhutan. It was observed that some of the major gaps were: i) lack of safety regulations and standards, ii) low priority of safety, iii) lack of data on safety on construction sites, iv) lack of competent manpower, v) lack of safety and health training, vi) lack of safety promotion, and vii) lack of documented and organized safety management systems. Furthermore, the study also proposes some recommendations for safe construction in Bhutan.
Wednesday, 17 March 2010
Owner’s Risk Management for Civil Construction Projects in Vietnam
Construction is one of the riskiest industries compared to others. Risk in construction often causes time and cost overrun. As a result, the projects were delayed or exceeded the estimated budget, behind the schedule. Moreover, risk can affect productivity, performance, quality and the budget of a project.
Nowadays, risk management is considered as one of the most important factors of decision making of every business as well as the construction industry. As construction projects are becoming more and more complex, dynamic, they are bared to more risks and uncertainties. Hence, effective risk management has become one of the key problems that deal with the industry.
Vietnam is now on its way of modernization, industrialization and trying to integrate with the world economy. Industries are faced many kinds of risks due to the continuous changes in social and economic condition. Therefore, construction industry is not only provided many opportunities, many chances but also many risks, uncertainties and threats.
In construction projects, many parties are involved such as owner, consultant, contractor, sub-contractor, and supplier etc. Each party has its own risks. There are some researches about the contractors’ risk in Vietnam’s construction industry. Consequently, it is significant to have a research about the risks that owners have to face in their financial investment in construction projects and the way they managed their risks as well as how to control construction risks smoothly because they are one of the most important parties that are involved in the projects from the beginning until completion and afterwards.
Based on the necessity for improving and escalating the owner’s risk management in construction projects mentioned in the statement of the problems, Mr. Nguyen Thanh Huy made a study intended to achieve the following objectives:
1. To determine, rank, classify risks facing owners in civil construction projects in Vietnam from the view of frequency of occurrence and degree of impact.
2. To determine the difficulties in applying risk management in civil construction projects.
3. To investigate how risk management is practiced by project owners in civil construction projects in Vietnam.
4. To give recommendations for improving risk management in practice.
General conclusions
This study focuses on the risks and risk management in the owner’s perspective in civil construction projects in Vietnam. It seems to be beneficial to owners in civil construction projects. In this research, the survey questionnaires were used to get the ideas of respondents about the listed risks in terms of frequency of occurrence and degree of impact. Moreover, a case study was conducted in two subjective chosen public entities in order to determine the level of risk management in practice by owners.
Major risk factors affected owners in civil construction projects in Vietnam
The mean values are carried out to determine and rank the risks in terms of frequency of occurrence and degree of impact. The top twenty risks in terms of frequency of occurrence and degree of impact are determined.
The top twenty risks which have high frequency of occurrence are: (1) Long procedure for approval and permits; (2) Unable to finish work on time; (3) Contractor takes jobs in several projects; (4) Design changes; (5) Corruptible government officials; (6) Late internal approval process from the owner; (7) Frequent changes in law; (8) Incomplete design scope; (9) Improper project feasibility study; (10) Increase of resettlement cost; (11) Improper project planning and budgeting; (12) Ineffectiveness and lack of supervision of consultants; (13) Inadequate or ambiguous specifications; (14) Lack of funds to proceed with work; (15) Delays in approval; (16) Inadequate tendering price; (17) Lack of knowledge and experience on construction; (18) Increase of material cost; (19) Impractical planning and scheduling; (20) Communication and coordination problems.
The top twenty risks which have high degree of impact are: (1) Inefficient and poor performance of contractors; (2) Lack of knowledge and experience on construction; (3) Long procedure for approval and permits; (4) Improper project planning and budgeting; (5) Ambiguous clauses of contract; (6) Shortage of experienced and skillful workmanship; (7) Poor design; (8) Poor quality of procured materials; (9) Unable to finish work on time; (10) Inadequate or ambiguous specifications; (11) Lack of funds to proceed with work; (12) Design changes; (13) Impractical planning and scheduling; (14) Inadequate tendering price; (15) Improper project feasibility study; (16) Ineffectiveness and lack of supervision of consultants; (17) Low quality of work; (18) Dispute with residents around site; (19) Incompetence of project team; (20) Late internal approval process from the owner.
The four risks which have high ranks in both frequency of occurrence and degree of impact are: “Long procedure for approval and permits”, “Unable to finish work on time”, “Design changes” and “Contractor takes jobs in several projects”
Moreover, factor analysis is used to test the interrelations among top twenty highly ranked risk events in terms of degree of occurrence. These risks could be grouped into five factors with most significance. They are: (1) Incompetent consultant/designer/project owner, (2) Social issues, (3) Contractor issues, (4) Approval issues, and (5) Improper feasibility study.
Hypothesis testing also pointed out that perceptions towards risk events were not dependent upon the level of experience and the size of public entities. One of the reasons explains these results: within 5-7 years until now, project management is considered one of the most important parts in project. Therefore, people are more and more interested in this. Many young engineers have the conditions to be trained their knowledge of project management as well as risk management. As a matter of fact, even without having much work experience yet, they still can have nearly the same perceptions towards risk events as those experienced ones. Moreover, even there is a difference in size of organization, but both of large and small entities are state-owned corporations and use the government budget, have the same policy about budget usage. Therefore, it is not surprising that both of them have the same awareness about risk events.
Major difficulties during risk management implementation
Risk management is relatively a new area in project management in Vietnam. Hence, the people who carry it out in projects face many difficulties. During this research, some difficulties that owners face when they apply risk management in their projects were determined. They are: (1) Lack of qualified experts, (2) Lack of historical data, (3) Poor communication among responsible people and (4) Unfamiliarity with tools and techniques. These finding difficulties seem to be important because it provide useful experiences for other companies who intend to apply risk management in their business.
The practice of risk management by owners in civil construction projects in Vietnam
By interviewing respondents in both the two public entities (large public entity and small public entity), risk management in practice by owners are investigated. There are some main points about risk management in practice in the two public entities.
- Regarding to risk management planning, there are some remarkable points to ponder. Risk management planning is considered most important and significant step in risk management. However, there is no policy, procedure, specific department or people assigned to manage risk in both public entities. Experience is considered the important factor to face risks. In the LPE, project documents, project budget, project size and project scope are most frequently used while in the SPE, project documents and project budget are most popularly used for risk management planning.
- Related to risk identification: The Risk identification in the LPE is better than in the SPE. Project management team, board of directors, contractors, consultants and external experts are involved in risk identification in LPE while in SPE, management team, board of director and consultant are involved. The approval project profiles, project budget, time schedule, project output, some government policies towards those projects, policies of lenders or law, experience from past projects, all information related to projects are inputs for risk identification in both entities. In terms of tools used, project document review, risk checklist, brainstorming are most frequently used techniques while fish-bone diagram and influence diagram are seldom employed. In general, risk identification is quite well performed.
- Risk analysis: Qualitative and quantitative risk analysis is used simultaneously by interviewees in both entities. In terms of qualitative analysis, ‘external consultations’ is the most frequently used method by both entities. Moreover, in terms of quantitative analysis, ‘interviewing’ and ‘expected monetary value’ are most frequently used tools by most interviewees. In contrast, ‘simulation’ and ‘sensitivity analysis’ are least frequently used tools. Nevertheless, there is no specific risk management software used by both entities.
- ‘Sharing based on agreement’ can be considered the most frequently used strategy by owners to allocate risks between them and contractors in risk response. In both entities, all five strategies to cope with risks are used frequently. Furthermore, ‘risk transfer’ is most frequently used and most effective strategy. While ‘risk retention’ is the least frequently used and effective strategy. Noticeably, contract management is well done in both entities.
- Risk monitoring and control, ‘Technical performance measurement’ is the most frequently used and effective procedure in the LPE and second most frequently used and effective procedure in the SPE. ‘Additional risk response planning’ is also the second most utilized tool in the LPE but it is least frequently used in the SPE. However, most respondents agreed that risk monitoring and control in their entities is not effective.
Generally, ‘risk management planning’ and ‘risk identification’ are best carried out while ‘risk analysis’ and ‘risk response’ are poorly done in SPE. But in LPE, ‘risk management planning’ and ‘risk identification’ are best carried out in their entities while other processes are poorly done. Most respondents evaluated the current risk management in their entity also in the medium level. In addition, it is noticeable that in both entities there is no formalized framework, procedure and system for risk management. Moreover, there is also no person or department assigned to manage risks. The practitioners depend on their experiences from past projects to handle risks.
Recommendation
Risk management is considered a new field applied in project management in Vietnam. Therefore, it is still not paid much attention. Based on the case study about the practice of risk management in Vietnam, risk management is poorly applied in projects. Moreover, most entities don’t have the policy, procedure or systematic risk management. Furthermore, they do not assign professionals or department for managing risks. Hence, as compared to other developing or developed countries, in Vietnam, risk management is simply carried out and doesn’t have much effect. Consequently, the author would like to suggest some recommendations in order to improve the current situation. They are as follows:
First, corporation should set up framework, policy or system for risk management. It is essential to apply risk management in every type or scale of projects in corporation.
Second, it is necessary for corporations to assign risk experts or department to take care of risk management in projects.
Third, corporation had better have periodic risk training program for its employees and purchase some software for risk management. Therefore, they can recognize the benefits of risk management and also know how to handle risk management in their projects.
Fourth, it is required to have top management commitment or support in risk management. It is better to allocate some budget or contingency for risk management.
Last but not the least, the government should set up standard, policy or framework for project management that include risk management. Relatively, the government also needs to enforce risk management as a requirement in each project (prior to approving project).
His thesis abstract is copied and posted.
Abstract
Risk and uncertainty are inherent in all construction works irrespective of size, complexity, location, or even the speed of construction. For years the construction industry has had a very poor reputation for coping with risk, with many major projects failing to meet deadlines and cost targets. Both clients and contractors have suffered as a result of this. Nevertheless, like many other developing countries, Vietnam has encountered many problems that caused negative impacts on many construction projects. One of them is the lack of systematic risk management. Consequently, an assessment of present risk management practiced in civil construction projects may be useful to those involved as well as to improve this system in the future.
This research focuses on the identification of major risk factors that owners often face in civil construction projects. A questionnaire survey involving sixty seven engineers from owner organization was designed and executed. The perceptions about the influence of experience and companies’ size levels towards risk events are tested. Moreover, the research identified major difficulties that owners often face when they apply risk management on projects. In addition, in this research, the case study about the application of risk management in practice was conducted by interviewing the respondents in two chosen public entities (one large public entity and one small public entity). The above main points are useful because they can serve as lessons learned for the companies which are going to implement or improve risk management.
The key risk factors identified are: (1) Incompetent consultant/designer/project owner, (2) Social issues, (3) Contractor issues, (4) Approval issues, and (5) Improper feasibility study. Major difficulties that owners faced with when they applied risk management in practice are: (1) Lack of qualified experts, this is the main obstacle thoroughly appearing in many main processes in risk management cycle, (2) Lack of historical data, (3) Poor communication among responsible people and (4) Unfamiliarity with tools and techniques. Hypothesis testing also pointed out that perceptions towards risk events were not dependent upon the level of experience and the size of companies. Furthermore, by conducting the case study, the application of risk management in practice was only evaluated at the medium level. Additionally, it is noticeable that in both entities there is no formalized framework, procedure and system for risk management. Moreover, there is also no person or department assigned to manage risks. The practitioners depend on their experiences from past projects to handle risks.
Nowadays, risk management is considered as one of the most important factors of decision making of every business as well as the construction industry. As construction projects are becoming more and more complex, dynamic, they are bared to more risks and uncertainties. Hence, effective risk management has become one of the key problems that deal with the industry.
Vietnam is now on its way of modernization, industrialization and trying to integrate with the world economy. Industries are faced many kinds of risks due to the continuous changes in social and economic condition. Therefore, construction industry is not only provided many opportunities, many chances but also many risks, uncertainties and threats.
In construction projects, many parties are involved such as owner, consultant, contractor, sub-contractor, and supplier etc. Each party has its own risks. There are some researches about the contractors’ risk in Vietnam’s construction industry. Consequently, it is significant to have a research about the risks that owners have to face in their financial investment in construction projects and the way they managed their risks as well as how to control construction risks smoothly because they are one of the most important parties that are involved in the projects from the beginning until completion and afterwards.
Based on the necessity for improving and escalating the owner’s risk management in construction projects mentioned in the statement of the problems, Mr. Nguyen Thanh Huy made a study intended to achieve the following objectives:
1. To determine, rank, classify risks facing owners in civil construction projects in Vietnam from the view of frequency of occurrence and degree of impact.
2. To determine the difficulties in applying risk management in civil construction projects.
3. To investigate how risk management is practiced by project owners in civil construction projects in Vietnam.
4. To give recommendations for improving risk management in practice.
General conclusions
This study focuses on the risks and risk management in the owner’s perspective in civil construction projects in Vietnam. It seems to be beneficial to owners in civil construction projects. In this research, the survey questionnaires were used to get the ideas of respondents about the listed risks in terms of frequency of occurrence and degree of impact. Moreover, a case study was conducted in two subjective chosen public entities in order to determine the level of risk management in practice by owners.
Major risk factors affected owners in civil construction projects in Vietnam
The mean values are carried out to determine and rank the risks in terms of frequency of occurrence and degree of impact. The top twenty risks in terms of frequency of occurrence and degree of impact are determined.
The top twenty risks which have high frequency of occurrence are: (1) Long procedure for approval and permits; (2) Unable to finish work on time; (3) Contractor takes jobs in several projects; (4) Design changes; (5) Corruptible government officials; (6) Late internal approval process from the owner; (7) Frequent changes in law; (8) Incomplete design scope; (9) Improper project feasibility study; (10) Increase of resettlement cost; (11) Improper project planning and budgeting; (12) Ineffectiveness and lack of supervision of consultants; (13) Inadequate or ambiguous specifications; (14) Lack of funds to proceed with work; (15) Delays in approval; (16) Inadequate tendering price; (17) Lack of knowledge and experience on construction; (18) Increase of material cost; (19) Impractical planning and scheduling; (20) Communication and coordination problems.
The top twenty risks which have high degree of impact are: (1) Inefficient and poor performance of contractors; (2) Lack of knowledge and experience on construction; (3) Long procedure for approval and permits; (4) Improper project planning and budgeting; (5) Ambiguous clauses of contract; (6) Shortage of experienced and skillful workmanship; (7) Poor design; (8) Poor quality of procured materials; (9) Unable to finish work on time; (10) Inadequate or ambiguous specifications; (11) Lack of funds to proceed with work; (12) Design changes; (13) Impractical planning and scheduling; (14) Inadequate tendering price; (15) Improper project feasibility study; (16) Ineffectiveness and lack of supervision of consultants; (17) Low quality of work; (18) Dispute with residents around site; (19) Incompetence of project team; (20) Late internal approval process from the owner.
The four risks which have high ranks in both frequency of occurrence and degree of impact are: “Long procedure for approval and permits”, “Unable to finish work on time”, “Design changes” and “Contractor takes jobs in several projects”
Moreover, factor analysis is used to test the interrelations among top twenty highly ranked risk events in terms of degree of occurrence. These risks could be grouped into five factors with most significance. They are: (1) Incompetent consultant/designer/project owner, (2) Social issues, (3) Contractor issues, (4) Approval issues, and (5) Improper feasibility study.
Hypothesis testing also pointed out that perceptions towards risk events were not dependent upon the level of experience and the size of public entities. One of the reasons explains these results: within 5-7 years until now, project management is considered one of the most important parts in project. Therefore, people are more and more interested in this. Many young engineers have the conditions to be trained their knowledge of project management as well as risk management. As a matter of fact, even without having much work experience yet, they still can have nearly the same perceptions towards risk events as those experienced ones. Moreover, even there is a difference in size of organization, but both of large and small entities are state-owned corporations and use the government budget, have the same policy about budget usage. Therefore, it is not surprising that both of them have the same awareness about risk events.
Major difficulties during risk management implementation
Risk management is relatively a new area in project management in Vietnam. Hence, the people who carry it out in projects face many difficulties. During this research, some difficulties that owners face when they apply risk management in their projects were determined. They are: (1) Lack of qualified experts, (2) Lack of historical data, (3) Poor communication among responsible people and (4) Unfamiliarity with tools and techniques. These finding difficulties seem to be important because it provide useful experiences for other companies who intend to apply risk management in their business.
The practice of risk management by owners in civil construction projects in Vietnam
By interviewing respondents in both the two public entities (large public entity and small public entity), risk management in practice by owners are investigated. There are some main points about risk management in practice in the two public entities.
- Regarding to risk management planning, there are some remarkable points to ponder. Risk management planning is considered most important and significant step in risk management. However, there is no policy, procedure, specific department or people assigned to manage risk in both public entities. Experience is considered the important factor to face risks. In the LPE, project documents, project budget, project size and project scope are most frequently used while in the SPE, project documents and project budget are most popularly used for risk management planning.
- Related to risk identification: The Risk identification in the LPE is better than in the SPE. Project management team, board of directors, contractors, consultants and external experts are involved in risk identification in LPE while in SPE, management team, board of director and consultant are involved. The approval project profiles, project budget, time schedule, project output, some government policies towards those projects, policies of lenders or law, experience from past projects, all information related to projects are inputs for risk identification in both entities. In terms of tools used, project document review, risk checklist, brainstorming are most frequently used techniques while fish-bone diagram and influence diagram are seldom employed. In general, risk identification is quite well performed.
- Risk analysis: Qualitative and quantitative risk analysis is used simultaneously by interviewees in both entities. In terms of qualitative analysis, ‘external consultations’ is the most frequently used method by both entities. Moreover, in terms of quantitative analysis, ‘interviewing’ and ‘expected monetary value’ are most frequently used tools by most interviewees. In contrast, ‘simulation’ and ‘sensitivity analysis’ are least frequently used tools. Nevertheless, there is no specific risk management software used by both entities.
- ‘Sharing based on agreement’ can be considered the most frequently used strategy by owners to allocate risks between them and contractors in risk response. In both entities, all five strategies to cope with risks are used frequently. Furthermore, ‘risk transfer’ is most frequently used and most effective strategy. While ‘risk retention’ is the least frequently used and effective strategy. Noticeably, contract management is well done in both entities.
- Risk monitoring and control, ‘Technical performance measurement’ is the most frequently used and effective procedure in the LPE and second most frequently used and effective procedure in the SPE. ‘Additional risk response planning’ is also the second most utilized tool in the LPE but it is least frequently used in the SPE. However, most respondents agreed that risk monitoring and control in their entities is not effective.
Generally, ‘risk management planning’ and ‘risk identification’ are best carried out while ‘risk analysis’ and ‘risk response’ are poorly done in SPE. But in LPE, ‘risk management planning’ and ‘risk identification’ are best carried out in their entities while other processes are poorly done. Most respondents evaluated the current risk management in their entity also in the medium level. In addition, it is noticeable that in both entities there is no formalized framework, procedure and system for risk management. Moreover, there is also no person or department assigned to manage risks. The practitioners depend on their experiences from past projects to handle risks.
Recommendation
Risk management is considered a new field applied in project management in Vietnam. Therefore, it is still not paid much attention. Based on the case study about the practice of risk management in Vietnam, risk management is poorly applied in projects. Moreover, most entities don’t have the policy, procedure or systematic risk management. Furthermore, they do not assign professionals or department for managing risks. Hence, as compared to other developing or developed countries, in Vietnam, risk management is simply carried out and doesn’t have much effect. Consequently, the author would like to suggest some recommendations in order to improve the current situation. They are as follows:
First, corporation should set up framework, policy or system for risk management. It is essential to apply risk management in every type or scale of projects in corporation.
Second, it is necessary for corporations to assign risk experts or department to take care of risk management in projects.
Third, corporation had better have periodic risk training program for its employees and purchase some software for risk management. Therefore, they can recognize the benefits of risk management and also know how to handle risk management in their projects.
Fourth, it is required to have top management commitment or support in risk management. It is better to allocate some budget or contingency for risk management.
Last but not the least, the government should set up standard, policy or framework for project management that include risk management. Relatively, the government also needs to enforce risk management as a requirement in each project (prior to approving project).
His thesis abstract is copied and posted.
Abstract
Risk and uncertainty are inherent in all construction works irrespective of size, complexity, location, or even the speed of construction. For years the construction industry has had a very poor reputation for coping with risk, with many major projects failing to meet deadlines and cost targets. Both clients and contractors have suffered as a result of this. Nevertheless, like many other developing countries, Vietnam has encountered many problems that caused negative impacts on many construction projects. One of them is the lack of systematic risk management. Consequently, an assessment of present risk management practiced in civil construction projects may be useful to those involved as well as to improve this system in the future.
This research focuses on the identification of major risk factors that owners often face in civil construction projects. A questionnaire survey involving sixty seven engineers from owner organization was designed and executed. The perceptions about the influence of experience and companies’ size levels towards risk events are tested. Moreover, the research identified major difficulties that owners often face when they apply risk management on projects. In addition, in this research, the case study about the application of risk management in practice was conducted by interviewing the respondents in two chosen public entities (one large public entity and one small public entity). The above main points are useful because they can serve as lessons learned for the companies which are going to implement or improve risk management.
The key risk factors identified are: (1) Incompetent consultant/designer/project owner, (2) Social issues, (3) Contractor issues, (4) Approval issues, and (5) Improper feasibility study. Major difficulties that owners faced with when they applied risk management in practice are: (1) Lack of qualified experts, this is the main obstacle thoroughly appearing in many main processes in risk management cycle, (2) Lack of historical data, (3) Poor communication among responsible people and (4) Unfamiliarity with tools and techniques. Hypothesis testing also pointed out that perceptions towards risk events were not dependent upon the level of experience and the size of companies. Furthermore, by conducting the case study, the application of risk management in practice was only evaluated at the medium level. Additionally, it is noticeable that in both entities there is no formalized framework, procedure and system for risk management. Moreover, there is also no person or department assigned to manage risks. The practitioners depend on their experiences from past projects to handle risks.
Tuesday, 16 March 2010
Testing Of Herzberg’s Motivation Theory In The Construction Industry
Among the motivation theories, Herzberg’s two-factor theory (Herzberg et al., 1959) has been popular over the past 30 years. It has been widely studied and few managers are unfamiliar with its practical factors and recommendations (Steers, et al., 1996; Robbins, 2000). Since the construction industry has many unique characteristics, e.g. cost and schedule strictness, plentiful conflicts, labor-based, on-site working and short-term employment (Nave, 1968; Schrader, 1972; Laufer and Jenkins; 1982). Mr. Rathavoot Ruthankoon made a research to discover the answers in the following problems:
Problem I: Herzberg’s two-factor theory may not be valid for construction professionals. The theory should be tested.
Problem II: Herzberg’s theory may lack methodological validity. Therefore, the theory should be tested using different research instruments in the same environment.
Problems III: Relationship between job satisfaction and performance in factor classification would strengthen the theory.
Problem IV: Herzberg’ theory can be expanded to group-based work. The conclusion of the theory on project performance may be different from those stated in the original research by Herzberg.
The four research objectives were derived to answer the four research problems above. Each objective is broken down into sub-objectives providing narrow scope under main objective.
Objective I: To test Herzberg’s motivation theory in the construction industry by replicating Herbzerg’s methodology (critical incident interview). This objective is split into four parts; interview and count factors, group factors concerning effect on job satisfaction, group factors concerning effect of different positions, and compare results with Herzberg’s original study. This process is exactly the same as in Herzberg’s study to facilitate comparison
Objective II: To test the validity of Herzberg’s methodology by using another research instrument and to compare the results with the interview result. The second objective is broken down into four parts. First, Objective 2.1 is to design questionnaire using results from the interview in Objective 1. Concept of Objective 2.2 and 2.3 are the same as Objective 1.2 and 1.3 that group factors concerning effect on job satisfaction and effect of different positions. Objective 2.4 is to compare the result between interview and questionnaire to find out the differences between the two research methods.
Objective III: To group factors in the theory using job satisfaction and performance. Effects on commitment, attendance, turnover, and absenteeism are considered in Objective 3.1. Objective 3.2 is to compare the result with grouping without consideration for performance.
Objective IV: Analyze the data on performance at the project level using a construction project as the unit of analysis. Objective 4.1 is to group factors concerning effect on project performance (time, cost, and quality). Objective 4.2 is to compare the result between factors grouping with project performance and Herzberg's original result.
Conclusion
Objective 1
The result of a replication of Herzberg’s critical incident interview on construction staff shows some differences from the result of Herzberg’s study (1959). This result shows a strong evidence that the theory does not have situational validity in the Thai construction industry. In addition, some differences were found among samples of project engineers, site engineers, senior foremen, and junior foremen. It is concluded that the theory is not stable across positions.
Objective 2
The result shows that some factors from the questionnaire did not appear the same as in the results from the interview. Lack of methodological validity of Herzberg’s theory is confirmed. In addition, some differences are found among samples of project engineers, site engineers, senior foremen, and junior foremen in the questionnaire result. This also confirms that differences in position have effect on the theory.
Objective 3
The result of the third objective shows that the effect of level of satisfaction on overall job satisfaction is not necessarily the same as its effects on performance, organizational commitment, and attendance. For example, a motivation factor that leads to increase in job satisfaction may not lead to increase in performance but may lead to increase in organizational commitment. Absenteeism and tardiness are found to have no significant relationship with any factor.
Objective 4
The effects of satisfaction level on project performance are different from the result at the individual level and also different from Herzberg's result. Motivation factors are not always the same for project performance.
Her thesis abstract is copied and posted.
ABSTRACT
Four objectives are accomplished in this dissertation. The first objective is to test Herzberg's theory using a replication of Herzberg’s methodology in the construction industry. The second objective is to test methodological validity of the theory by comparing results from the replication interview with the results from a questionnaire survey designed specially for theory testing. The third objective is to use effects of factors satisfaction on employees' performance into factors grouping process. The fourth objective is to find the relationship between factor satisfaction by project team members with project performance in terms of time, cost, and quality.
The target population of this study is engineers and foremen in construction sites in the Bangkok area. A sample of 125 site staffs from 40 construction sites participated in critical incident interviews for objective 1. Results from the interviews were used for the questionnaire design for objectives 2, 3, and 4. A sample of 344 site staffs from 42 construction sites in the Bangkok area returned valid questionnaires.
The result of a replication of Herzberg’s critical incident interview on construction professionals shows some differences from the result of Herzberg’s study (1959). This result shows strong evidence that the theory does not have situational validity in the Thai construction industry. The result of second objective shows that some factors from the questionnaire did not appear the same as in the results from the interview. In addition, some differences are found among samples of project engineers, site engineers, senior foremen, and junior foremen in the questionnaire result. The result of the third objective shows that the effect of level of satisfaction on overall job satisfaction is not necessarily the same as its effects on performance, organizational commitment, and attendance. On the fourth objective, the effects of satisfaction level on project performance are different from the result at the individual level and also different from Herzberg's result. Based on the result of this study, motivation and hygiene factors are regrouped into 4 groups namely, performance-related, technical-related, position-related, and feeling-related factors according to their characteristics.
Problem I: Herzberg’s two-factor theory may not be valid for construction professionals. The theory should be tested.
Problem II: Herzberg’s theory may lack methodological validity. Therefore, the theory should be tested using different research instruments in the same environment.
Problems III: Relationship between job satisfaction and performance in factor classification would strengthen the theory.
Problem IV: Herzberg’ theory can be expanded to group-based work. The conclusion of the theory on project performance may be different from those stated in the original research by Herzberg.
The four research objectives were derived to answer the four research problems above. Each objective is broken down into sub-objectives providing narrow scope under main objective.
Objective I: To test Herzberg’s motivation theory in the construction industry by replicating Herbzerg’s methodology (critical incident interview). This objective is split into four parts; interview and count factors, group factors concerning effect on job satisfaction, group factors concerning effect of different positions, and compare results with Herzberg’s original study. This process is exactly the same as in Herzberg’s study to facilitate comparison
Objective II: To test the validity of Herzberg’s methodology by using another research instrument and to compare the results with the interview result. The second objective is broken down into four parts. First, Objective 2.1 is to design questionnaire using results from the interview in Objective 1. Concept of Objective 2.2 and 2.3 are the same as Objective 1.2 and 1.3 that group factors concerning effect on job satisfaction and effect of different positions. Objective 2.4 is to compare the result between interview and questionnaire to find out the differences between the two research methods.
Objective III: To group factors in the theory using job satisfaction and performance. Effects on commitment, attendance, turnover, and absenteeism are considered in Objective 3.1. Objective 3.2 is to compare the result with grouping without consideration for performance.
Objective IV: Analyze the data on performance at the project level using a construction project as the unit of analysis. Objective 4.1 is to group factors concerning effect on project performance (time, cost, and quality). Objective 4.2 is to compare the result between factors grouping with project performance and Herzberg's original result.
Conclusion
Objective 1
The result of a replication of Herzberg’s critical incident interview on construction staff shows some differences from the result of Herzberg’s study (1959). This result shows a strong evidence that the theory does not have situational validity in the Thai construction industry. In addition, some differences were found among samples of project engineers, site engineers, senior foremen, and junior foremen. It is concluded that the theory is not stable across positions.
Objective 2
The result shows that some factors from the questionnaire did not appear the same as in the results from the interview. Lack of methodological validity of Herzberg’s theory is confirmed. In addition, some differences are found among samples of project engineers, site engineers, senior foremen, and junior foremen in the questionnaire result. This also confirms that differences in position have effect on the theory.
Objective 3
The result of the third objective shows that the effect of level of satisfaction on overall job satisfaction is not necessarily the same as its effects on performance, organizational commitment, and attendance. For example, a motivation factor that leads to increase in job satisfaction may not lead to increase in performance but may lead to increase in organizational commitment. Absenteeism and tardiness are found to have no significant relationship with any factor.
Objective 4
The effects of satisfaction level on project performance are different from the result at the individual level and also different from Herzberg's result. Motivation factors are not always the same for project performance.
Her thesis abstract is copied and posted.
ABSTRACT
Four objectives are accomplished in this dissertation. The first objective is to test Herzberg's theory using a replication of Herzberg’s methodology in the construction industry. The second objective is to test methodological validity of the theory by comparing results from the replication interview with the results from a questionnaire survey designed specially for theory testing. The third objective is to use effects of factors satisfaction on employees' performance into factors grouping process. The fourth objective is to find the relationship between factor satisfaction by project team members with project performance in terms of time, cost, and quality.
The target population of this study is engineers and foremen in construction sites in the Bangkok area. A sample of 125 site staffs from 40 construction sites participated in critical incident interviews for objective 1. Results from the interviews were used for the questionnaire design for objectives 2, 3, and 4. A sample of 344 site staffs from 42 construction sites in the Bangkok area returned valid questionnaires.
The result of a replication of Herzberg’s critical incident interview on construction professionals shows some differences from the result of Herzberg’s study (1959). This result shows strong evidence that the theory does not have situational validity in the Thai construction industry. The result of second objective shows that some factors from the questionnaire did not appear the same as in the results from the interview. In addition, some differences are found among samples of project engineers, site engineers, senior foremen, and junior foremen in the questionnaire result. The result of the third objective shows that the effect of level of satisfaction on overall job satisfaction is not necessarily the same as its effects on performance, organizational commitment, and attendance. On the fourth objective, the effects of satisfaction level on project performance are different from the result at the individual level and also different from Herzberg's result. Based on the result of this study, motivation and hygiene factors are regrouped into 4 groups namely, performance-related, technical-related, position-related, and feeling-related factors according to their characteristics.
Monday, 15 March 2010
Management in Strategic Assets for Competitiveness of Construction Organizations
Globalization presents formidable challenges to developing countries as they struggle to compete in the world market. In Thailand, after the Asian economic crisis in 1997, a few construction firms which had survived through the crisis, needed to thoroughly re-examine the opportunities for previously overlooked cost-cutting and operational improvement. A construction firm often dangles between success and failure due to the fragile makeup of its capital structure, which generally consists of high debt financing rather than the equity. This situation is a result of the limited equity capital and results in high risk, and therefore, a high cost of debt to finance the large amount of money required to facilitate construction operations. To compete successfully, the construction organization has to skillfully and cautiously evaluate the investment in assets in order to obtain the most efficient use of the total available capital. Given that construction organizations generate their main income through contracted projects, managers have put a priority on allocating resources towards construction project needs. However, this practice in resource allocation does not optimize the utilization of organization’s resources as a whole. For sustainable competitiveness of construction organizations, the budget must be allocated with comprehensive strategic considerations. The aim is to continuously cultivate resources and capabilities to cover all the organization’s vital organs. It is hoped that through this approach, the organization’s core competencies can be strengthened.
During the previous decade, the Thai Government has continuously invested in large infrastructure projects such as the Bangkok Sky Train lines, Underground Train lines, Cable-stayed Bridge, as well as the renowned Suvarnabhumi International Airport. These projects require high technological capabilities which can not be fulfilled solely by local contractors. As a result, a number of international engineering and construction firms from Europe, United States, Japan, and China entered the region to undertake these sophisticated projects. Furthermore, following the Free Trade Agreement which Thailand has with many countries, an alarming number of foreign investors invested in large capital projects. Their targets included power plants, manufacturing plants, luxurious hotels and residential projects throughout the country. Local contractors who wish to survive in this new circumstance or enter into emerging regional market need to craft effective strategies and rapidly develop the required resources and capabilities to seize opportunities.
Ms. Piyanut Vorasubin made a research which purpose was to investigate the strategic assets and their mechanism in providing sustainable competitiveness for construction firms. The following research questions are addressed in her study:
1) What are the strategic assets underlying core capabilities of Thai construction firms?
2) How should construction organizations develop strategic assets in order to achieve the sustainable competitiveness of the organization?
The main focus of her study is to provide answers to the question stated above in the following areas:
1) To identify the strategic assets underlying core capabilities of construction firms in the Thai construction industry.
2) To explore how strategic assets drive performance of Thai construction firms.
3) To propose a methodology which guides construction firms to effectively manage strategic assets for the competitiveness of their organizations.
Research Findings
Strategic Assets underlying Capabilities of Construction Firms
Factor analysis with Varimax rotation was used to identify strategic assets underlying the six capabilities of construction firm. The six strategic assets found underlying the three direct capabilities are: 1) reputation development; 2) client relations; 3) networkability; 4) bargaining power; 5) project management; and 6) construction technology. The eight strategic assets found underlying the three support capabilities are: 1) financial stability; 2) risk and investment management; 3) strategic management; 4) organizational culture; 5) human resources management; 6) information technology; 7) learning organization; and 8) development and innovation.
Mechanism of Strategic Assets in Driving Firm’s Competitiveness
Strategic management was found driving all direct strategic assets and also closely correlated with most of the support strategic assets, especially risk and investment management and learning organization. Outstanding human resources management was found to negatively impact networkability and construction technology. However, it was found strongly correlated with other support strategic assets including organizational culture, strategic management, learning organization and information technology. This indicates the indirect effect of human resources on other support strategic assets. Without a firm’s long-term direction and appropriate culture, competent staff could harm the performance of the construction firm. Construction technology, which is a fundamental direct strategic asset required for long-term competitiveness of construction firms, was driven by learning organization and development and innovation.
Most construction firms in Thailand focus on direct strategic assets with the exception of construction technology. Among the eight support strategic assets, development and innovation is rated the lowest. Strategic management is not emphasized as it should be, in fact given an 8th ranking. These three strategic assets are important to long-term success of a construction business. The lack of these three assets would make construction firm vulnerable to changes in the market environment.
An Improvement Mechanism of Strategic Asset Management
Four parts are required to attain sustainable competitiveness in construction firms. Firstly, construction firm must develop organizational motivation in order to motivate and align the firm’s human resources as well as allocate other tangible and intangible resources beyond project level towards the existence of the firm. A construction firm needs to develop strategic management together with effective risk and investment management in order to drive the organization toward its long-term goals. Secondly, a construction firm should strengthen its operational foundation to guarantee continual flow of projects matched to the firm’s construction capacity. This is so that financial stability can be achieved. Three relational assets, specifically bargaining power with suppliers and subcontractors, client relations, and networkability, drive project procurement and marketing capabilities are necessary for the construction business. Professional project management must be developed to ensure the quality of construction services delivered. The quality of previous work will accumulate and result in an excellent reputation which is the strategic asset providing competitive advantage in the construction industry. However, to sustain financial stability, effective risk and investment management in line with the firm’s strategy must be developed too.
Thirdly, management must create an encouraging working environment so synergy among the firm’s human resources necessary for long-term development of organization can occur. Three strategic assets are required to create such a working environment namely excellent human resources management, positive organization culture and efficient information technology. Construction technology which is difficult or impossible to imitate by competitors is very critical to the long-term competitive edge of a construction business.
Nonetheless, the development of the three parts previously described cannot alone give the firm a technologically leading edge. The last part necessary for sustainable competitiveness of construction firm is development of technological excellence. This requires learning organization and continuous development and innovation to be in place. Not only great effort and time but a significant amount of long-term capital is necessary for such investment. Thus, financial stability, as discussed earlier during the development of strong operational foundation, is the prerequisite to build technological excellence. Sustainable competitiveness can be secured if long-term financial stability together with continuous development of efficient construction technology is successfully developed.
Recommendation for managers in Managing Strategic Asset
The improvement mechanism for strategic assets management, recommendations are made to assist managers of Thai construction firms in securing long-term competitiveness are detailed as follows.
1) Create organization motivation
• Set up an effective firm performance evaluation system to be able to assess firm’s strengths and weaknesses.
• Establish long-range planning extending beyond 3 years by setting long-term goals and identifying firm’s target clientele
• Develop cash together with investment policy and procedure in order to achieve long-term goals including retain earnings during profitable years and upgrade quality of cash flow forecast.
• Keep utmost discipline in matching source and utilization of funding.
2) Develop strong operational foundation
• Create relationship with investors and international construction firms.
• Develop informative client and potential client database.
• Establish procedure for suppliers/subcontractors evaluation and selection in order to develop long-term contractual relationship.
• Establish systematic project cost database for all completed projects.
• Set up periodical meeting to review firm’s cost structure. •Form project team with clear authority and responsibility.
3) Create encouraging working environment
- Develop excellent business philosophy to promote good ethics, team environment, creativity, and adaptability of staffs.
- Enhance staff participation by gathering staff’s feedbacks in development of business plan and policy.
- Establish career development path and fair staff promotion policy.
- Integrate accounting information system with the project tracking system in order to provide effective decision support.
4) Develop technological excellence
• Establish periodical cross-project and cross-department meeting as formal channel to exchange knowledge and experiences for creative problem-solving.
• Develop business operation manual in order to accumulate firm’s knowledge.
• Find opportunities to send staffs to external training, seminar, and continuing education valuable to firm’s long-term goals.
• Constantly monitor best practice from construction as well as other industries.
• Find potential partner for valuable technology transfer.
Her thesis abstract is copied and posted.
ABSTRACT
This study focuses on the management of strategic assets by construction firms in order to achieve competitiveness with the following three objectives: 1) to identify the strategic assets underlying core capabilities of construction firms in the Thai construction industry; 2) to explore how strategic assets drive the performance of Thai construction firms; 3) to propose a methodology which guides the construction firms to effectively manage strategic assets for the competitiveness of their organizations.
The pre-survey consisted of four case studies and in-depth interviews with industry experts. From pre-survey results and previous literature, a preliminary list of 106 resources and competencies valuable to construction firms was developed. The questionnaire was then designed using these 106 items, categorized under six organizational capabilities: marketing, procurement, construction, financial, business management, and learning and innovation. Questionnaires assessing the level of importance given to these resources and competencies were sent to 1,027 Thai construction firms, out of which 258 sets were returned.
Using the factor analysis technique, these 106 items were reduced to 14, termed as the strategic assets. To identify how these assets drive the firms’ performances, they were classified into direct and support strategic assets. The direct strategic assets were those directly related to the firms’ products and services, including excellent reputation, exceptional client relations, strong networking, strong bargaining power, efficient construction technology, and professional project management. The eight support strategic assets, which were indirectly related to the firms’ products and services, included financial stability, effective risk and investment management, explicit strategic management, positive organization culture, efficient information technology, excellent human resources management, effective learning organization, and continuous development and innovation. Multiple regression analysis was used to explain how each support strategic asset affects each direct strategic asset.
The framework in managing these assets was developed by stressing the important role of developing explicit strategic management together with excellent human resources management and positive organization culture. These three strategic assets are the key drivers in generating and upholding effective learning organization and continuous development and innovation which are required for sustainable competitiveness of construction firms. Based on the 14 strategic assets found, recommendations were made for managers of construction firms as follow:1) create organizational motivation; 2) develop strong operational foundation; 3) create encouraging working environment; and 4) develop technological excellence.
During the previous decade, the Thai Government has continuously invested in large infrastructure projects such as the Bangkok Sky Train lines, Underground Train lines, Cable-stayed Bridge, as well as the renowned Suvarnabhumi International Airport. These projects require high technological capabilities which can not be fulfilled solely by local contractors. As a result, a number of international engineering and construction firms from Europe, United States, Japan, and China entered the region to undertake these sophisticated projects. Furthermore, following the Free Trade Agreement which Thailand has with many countries, an alarming number of foreign investors invested in large capital projects. Their targets included power plants, manufacturing plants, luxurious hotels and residential projects throughout the country. Local contractors who wish to survive in this new circumstance or enter into emerging regional market need to craft effective strategies and rapidly develop the required resources and capabilities to seize opportunities.
Ms. Piyanut Vorasubin made a research which purpose was to investigate the strategic assets and their mechanism in providing sustainable competitiveness for construction firms. The following research questions are addressed in her study:
1) What are the strategic assets underlying core capabilities of Thai construction firms?
2) How should construction organizations develop strategic assets in order to achieve the sustainable competitiveness of the organization?
The main focus of her study is to provide answers to the question stated above in the following areas:
1) To identify the strategic assets underlying core capabilities of construction firms in the Thai construction industry.
2) To explore how strategic assets drive performance of Thai construction firms.
3) To propose a methodology which guides construction firms to effectively manage strategic assets for the competitiveness of their organizations.
Research Findings
Strategic Assets underlying Capabilities of Construction Firms
Factor analysis with Varimax rotation was used to identify strategic assets underlying the six capabilities of construction firm. The six strategic assets found underlying the three direct capabilities are: 1) reputation development; 2) client relations; 3) networkability; 4) bargaining power; 5) project management; and 6) construction technology. The eight strategic assets found underlying the three support capabilities are: 1) financial stability; 2) risk and investment management; 3) strategic management; 4) organizational culture; 5) human resources management; 6) information technology; 7) learning organization; and 8) development and innovation.
Mechanism of Strategic Assets in Driving Firm’s Competitiveness
Strategic management was found driving all direct strategic assets and also closely correlated with most of the support strategic assets, especially risk and investment management and learning organization. Outstanding human resources management was found to negatively impact networkability and construction technology. However, it was found strongly correlated with other support strategic assets including organizational culture, strategic management, learning organization and information technology. This indicates the indirect effect of human resources on other support strategic assets. Without a firm’s long-term direction and appropriate culture, competent staff could harm the performance of the construction firm. Construction technology, which is a fundamental direct strategic asset required for long-term competitiveness of construction firms, was driven by learning organization and development and innovation.
Most construction firms in Thailand focus on direct strategic assets with the exception of construction technology. Among the eight support strategic assets, development and innovation is rated the lowest. Strategic management is not emphasized as it should be, in fact given an 8th ranking. These three strategic assets are important to long-term success of a construction business. The lack of these three assets would make construction firm vulnerable to changes in the market environment.
An Improvement Mechanism of Strategic Asset Management
Four parts are required to attain sustainable competitiveness in construction firms. Firstly, construction firm must develop organizational motivation in order to motivate and align the firm’s human resources as well as allocate other tangible and intangible resources beyond project level towards the existence of the firm. A construction firm needs to develop strategic management together with effective risk and investment management in order to drive the organization toward its long-term goals. Secondly, a construction firm should strengthen its operational foundation to guarantee continual flow of projects matched to the firm’s construction capacity. This is so that financial stability can be achieved. Three relational assets, specifically bargaining power with suppliers and subcontractors, client relations, and networkability, drive project procurement and marketing capabilities are necessary for the construction business. Professional project management must be developed to ensure the quality of construction services delivered. The quality of previous work will accumulate and result in an excellent reputation which is the strategic asset providing competitive advantage in the construction industry. However, to sustain financial stability, effective risk and investment management in line with the firm’s strategy must be developed too.
Thirdly, management must create an encouraging working environment so synergy among the firm’s human resources necessary for long-term development of organization can occur. Three strategic assets are required to create such a working environment namely excellent human resources management, positive organization culture and efficient information technology. Construction technology which is difficult or impossible to imitate by competitors is very critical to the long-term competitive edge of a construction business.
Nonetheless, the development of the three parts previously described cannot alone give the firm a technologically leading edge. The last part necessary for sustainable competitiveness of construction firm is development of technological excellence. This requires learning organization and continuous development and innovation to be in place. Not only great effort and time but a significant amount of long-term capital is necessary for such investment. Thus, financial stability, as discussed earlier during the development of strong operational foundation, is the prerequisite to build technological excellence. Sustainable competitiveness can be secured if long-term financial stability together with continuous development of efficient construction technology is successfully developed.
Recommendation for managers in Managing Strategic Asset
The improvement mechanism for strategic assets management, recommendations are made to assist managers of Thai construction firms in securing long-term competitiveness are detailed as follows.
1) Create organization motivation
• Set up an effective firm performance evaluation system to be able to assess firm’s strengths and weaknesses.
• Establish long-range planning extending beyond 3 years by setting long-term goals and identifying firm’s target clientele
• Develop cash together with investment policy and procedure in order to achieve long-term goals including retain earnings during profitable years and upgrade quality of cash flow forecast.
• Keep utmost discipline in matching source and utilization of funding.
2) Develop strong operational foundation
• Create relationship with investors and international construction firms.
• Develop informative client and potential client database.
• Establish procedure for suppliers/subcontractors evaluation and selection in order to develop long-term contractual relationship.
• Establish systematic project cost database for all completed projects.
• Set up periodical meeting to review firm’s cost structure. •Form project team with clear authority and responsibility.
3) Create encouraging working environment
- Develop excellent business philosophy to promote good ethics, team environment, creativity, and adaptability of staffs.
- Enhance staff participation by gathering staff’s feedbacks in development of business plan and policy.
- Establish career development path and fair staff promotion policy.
- Integrate accounting information system with the project tracking system in order to provide effective decision support.
4) Develop technological excellence
• Establish periodical cross-project and cross-department meeting as formal channel to exchange knowledge and experiences for creative problem-solving.
• Develop business operation manual in order to accumulate firm’s knowledge.
• Find opportunities to send staffs to external training, seminar, and continuing education valuable to firm’s long-term goals.
• Constantly monitor best practice from construction as well as other industries.
• Find potential partner for valuable technology transfer.
Her thesis abstract is copied and posted.
ABSTRACT
This study focuses on the management of strategic assets by construction firms in order to achieve competitiveness with the following three objectives: 1) to identify the strategic assets underlying core capabilities of construction firms in the Thai construction industry; 2) to explore how strategic assets drive the performance of Thai construction firms; 3) to propose a methodology which guides the construction firms to effectively manage strategic assets for the competitiveness of their organizations.
The pre-survey consisted of four case studies and in-depth interviews with industry experts. From pre-survey results and previous literature, a preliminary list of 106 resources and competencies valuable to construction firms was developed. The questionnaire was then designed using these 106 items, categorized under six organizational capabilities: marketing, procurement, construction, financial, business management, and learning and innovation. Questionnaires assessing the level of importance given to these resources and competencies were sent to 1,027 Thai construction firms, out of which 258 sets were returned.
Using the factor analysis technique, these 106 items were reduced to 14, termed as the strategic assets. To identify how these assets drive the firms’ performances, they were classified into direct and support strategic assets. The direct strategic assets were those directly related to the firms’ products and services, including excellent reputation, exceptional client relations, strong networking, strong bargaining power, efficient construction technology, and professional project management. The eight support strategic assets, which were indirectly related to the firms’ products and services, included financial stability, effective risk and investment management, explicit strategic management, positive organization culture, efficient information technology, excellent human resources management, effective learning organization, and continuous development and innovation. Multiple regression analysis was used to explain how each support strategic asset affects each direct strategic asset.
The framework in managing these assets was developed by stressing the important role of developing explicit strategic management together with excellent human resources management and positive organization culture. These three strategic assets are the key drivers in generating and upholding effective learning organization and continuous development and innovation which are required for sustainable competitiveness of construction firms. Based on the 14 strategic assets found, recommendations were made for managers of construction firms as follow:1) create organizational motivation; 2) develop strong operational foundation; 3) create encouraging working environment; and 4) develop technological excellence.
Wednesday, 10 March 2010
Delay Causations In Water Supply Projects In Dong Nai Province, Vietnam: A Lesson Learned From Nhon Trach Water Supply Project
In recently years, Vietnam has been remarkably successful in expanding infrastructure construction project. After the planned economy changed to market economy, Vietnam economic development has increased considerably. The key economic zone of the South of Viet Nam is the one which has developed with the fastest speed in the whole country, including triangle of strategic economic: Ho Chi Minh City, Dong Nai Province and Ba Ria–Vung Tau Province, of which Dong Nai province plays an important role in the development of this zone.
During the execution of construction project, timely construction of a project was commonly considered the key of project success. Project time can be evaluated as the vital factor in project management view of point because it affects directly on the profit of project if project time delay happens.
The perception of project time management in construction industry has been applied in Viet Nam for recent years. As at that point Vietnam carried out the open-door policy to attract the investment from FDI (Foreign direct investment) projects. For this reason, it is essential to collaborate with oversea business and knowledge for Vietnam’s construction industry. However, many problems have been revealed due to the deficiency of the proficiencies in project management, such as:
- Project delays take place usually in the development projects due to deficient transmission among other parties, weather condition, social policy or other factors. It is surmised that more than 80% of projects in Dongnai Province have the problems with time project delays.
- Even projects were finished on time; there are still many claims during the execution project.
Besides, the implementation of project time management in construction industry in Viet Nam and Dongnai province does not still achieve the effectiveness. Several projects delayed for a short time while some projects have been gone on for many years. Annually, the result of water supply project delays causes the huge loss of total investment. Because clean water is indispensable for the local citizens, the delay of water supply construction projects emerges as one of the most vital problems in urban management.
Normally, the success of a project is admitted if it was completed punctually, with the reasonable cost and quality. It is proved that the finish of every construction project will be on time and under budget only if it has been managed efficiently and effectively. Particularly, several previous researchers demonstrated that at least a half of project delay causations can be avoided by a proficient policy in project management.
Mr. Vo Hoang Phuong made a case study which two objectives were to: (1) identify delay causations in water supply projects in Dongnai Province, Vietnam; and (2) develop a framework to control and prevent delays in future water supply projects.
CONCLUSION
Delay causations in water supply projects in Dongnai Province, Vietnam.
Evidently, it is found that there are several delays causation seriously affecting on time extension and cost. The impact of delays on time can be realized by the comparison between project schedule and the real situation. Throughout the research, the Nhon Trach water supply project can be considered a case study to illustrate the success in control and prevent delays causation. Figure below shows the attempt to control and prevent delays during the construction of Nhon Trach water supply project. In the initial contract, the project is expected to complete within 26 months and it has been maintained 26 months.
A framework to control and prevent delays in future water supply construction projects
In order to significantly prevent and control delays in water supply construction project, five guidelines having the most potential were considered. The result from the real situations showed that delays can be prevented and controlled by carrying out several important strategies during the implementation construction project, including accuracy design in survey and investigation site condition, communication system improvement; qualify subcontractors, the overall standardization and price escalation management strategy.
The following is the guideline to control and prevent delays in water supply construction project:
His thesis abstract is copied and posted.
ABSTRACT
In general, completion project with destined time, cost, and quality is the basic target of construction project management. Regrettably, most water supply projects cannot be finished within intended time, budget and resources. A large amount of projects frequently performed time overruns.
Normally, time delay always happened in water supply construction project. With the purpose to solve problems, it was found that several approaches have been affected project time completion. There are many factors found as the major source leading to manage project time completion affectively.
This report summarized the delay causation factors involved in water supply construction project in Dongnai Province, Viet Nam. This research will be conducted by using qualitative research. Through a case study in water supply construction project in Dongnai Province, the data will be collected to analyze the facing problems. It was discovered from this study that there were many factors causing project time delays in water supply construction project. From the case study, effective solutions for controlling the delays will be investigated. Finally, a framework for controlling and preventing delays in future water supply construction projects is proposed.
Tuesday, 9 March 2010
Assessment and Improvement of a Safety Management System: A Case Study of a Diving Contractor in Vietnam
Offshore diving is reputed a dangerous and risky job because of its working conditions: high pressure and caisson disease, working alone in dark and deep water, using many types of equipment supporting from surface so safety requirements in diving operations are very high and strict.
In tendering for an offshore construction project, diving contractors are required to submit their safety management system to client to demonstrate that their businesses are managed efficiently and responsibly, and that they can provide a reliable service without excessive downtime caused by work-related accidents and incidents.
While offshore diving in some areas is heavily regulated, there are other areas where there may be little or no outside control of diving activities. In such areas the diving contractors themselves are left to establish their own internal controls by means of their company manuals and procedures. (IMCA D014)
To establish and implement or assess OHS MS of a diving contractor, beside applications international standards, national laws and regulations, and diving specific requirements should be considered and complied.
Mr. Dao Manh Tuong made a study which aim is to review requirements for safety management system of a diving organization, assess safety management system for diving services of PetroVietnam Manpower Training College (PVMTC) to identify non-conformances of the safety management system. From result of the assessment, some recommendations are suggested to improve the system. PVMTC is selected for his case study because they are the biggest diving contractor supplying diving services in oil and gas industry in Vietnam. To achieve the main objective, the sub-objectives are defined to: (1) review requirements for safety management system of a diving organization; (2) assess the existing safety management system of a Vietnamese diving contractor – PVMTC and identify the gap and non-conformances of the safety management system; (3) draw some recommendations for improving the current safety management system of the diving contractor.
Conclusions
OHS MS requirements of a diving organization
OHSAS 18001:2007 standard defines a model with elements of an effective OH&S management system for an organization and specifies requirements for the elements of the system. OHSAS 18001:2007 standard can be applied to any type and size of organizations (OHSAS 18001:2007).
The Regulations No. 41/1999/QD-TTg requires organizations operating in petroleum industry to have establish and develop effective safety management system but it does not specify a model of safety management system which organizations have to follow. In IMCA D014 – “IMCA International Code of Practice for Offshore Diving”, it does not require diving organizations to establish and maintain a safety management system for their organization. It requires diving organizations to establish a management system and prepare some documents to manage a specific diving project.
A comparison of requirements shows that there are correspondences between OHSAS 18001:2007, Regulations No. 41/1999/QD-TTg and IMCA D014. Documents of a safety management system comply with OHSAS 18001:2007 standard is also fulfilled requirements of Regulations No. 41/1999/QD-TTg. These documents could be reviewed and revised periodically or when necessary as defined by organizations. Documents required by IMCA are more detailed and extended for OHSAS requirements to control operations of a diving organization. Documents required by IMCA have to be reviewed and revised for each diving project.
Assessment of PVMTC’s OHS MS for diving services
The documentations of OHS MS in PVMTC are in general compliance with the Vietnam legal requirements. There are only two documents need to be prepared as required by regulations. Those are lists of relevant regulatory requirements and lists of specific requirements that fulfill the regulatory requirements in the area of safety and working environment.
The review of documentation and records of diving systems and of diving projects in Technical Services Department has shown that documentation; procedures and guidelines, and records for routine activities of diving system are prepared and performed very good and fulfill IMCA requirements. However, documentation required by IMCA to manage a diving project is not prepared adequately and regularly. They are prepared only when clients request. For example:
Diving project plan
Safety management system interface documents
Risk management process matrix
Risk assessment
Management of change procedure
Procedure for site-specific risk assessments
Procedures for control assessed hazards and risks
Recommendation to Improve the Existing OHS MS of PVMTC
From findings of the assessment some recommendations are suggested to improve the existing OHS MS of PVMTC to desired safety management system which complies with OHSAS 18001:2007 and fulfills specific requirements to which the organization subscribes.
1. Adapt the existing OHS MS to conform to OHSAS 18001:2007 and integrate with quality management system.
Improve organization structure focus on project management structure.
3. Identify and assess applicable legal requirements and other requirements.
4. Perform risk & hazard assessment for all activities of a diving project.
5. Standardize and document procedures for some routine activities and processes of a diving project.
6. Implement and maintain OHS programs and procedures
His thesis abstract is copied and posted.
ABSTRACT
Offshore diving is reputed a dangerous and risky job. Safety requirements in diving operations are very high and strict. A commercial diving contractor has to conform to various regulations, standards, codes and guidelines from local governments, the clients, and the insurers of the diving contractor or other outside organizations, societies, advisory committees and associations. To establish, implement or assess OHS MS of a diving contractor, beside applications international standards, national laws and regulations and diving specific requirements should be considered.
The aim of this thesis is to review requirements for safety management system of a diving organization, assess safety management system for diving services of PetroVietnam Manpower Training College (PVMTC) to identify non-conformances of the safety management system. From result of the assessment, some recommendations are suggested to improve the system.
The OSH MS assessment was conducted using checklists based on reviewing of requirements of OSHAS 18001:2007, Vietnamese applicable laws and regulations, and of diving specific requirements of IMCA. The assessment consisted of review of written documentation and performance of the existing OHS MS. No formal interviews or walk-through inspections of operations and work areas was done.
Finally, conclusions and recommendations for improving the existing system of PVMTC are drawn from findings of the assessment.
In tendering for an offshore construction project, diving contractors are required to submit their safety management system to client to demonstrate that their businesses are managed efficiently and responsibly, and that they can provide a reliable service without excessive downtime caused by work-related accidents and incidents.
While offshore diving in some areas is heavily regulated, there are other areas where there may be little or no outside control of diving activities. In such areas the diving contractors themselves are left to establish their own internal controls by means of their company manuals and procedures. (IMCA D014)
To establish and implement or assess OHS MS of a diving contractor, beside applications international standards, national laws and regulations, and diving specific requirements should be considered and complied.
Mr. Dao Manh Tuong made a study which aim is to review requirements for safety management system of a diving organization, assess safety management system for diving services of PetroVietnam Manpower Training College (PVMTC) to identify non-conformances of the safety management system. From result of the assessment, some recommendations are suggested to improve the system. PVMTC is selected for his case study because they are the biggest diving contractor supplying diving services in oil and gas industry in Vietnam. To achieve the main objective, the sub-objectives are defined to: (1) review requirements for safety management system of a diving organization; (2) assess the existing safety management system of a Vietnamese diving contractor – PVMTC and identify the gap and non-conformances of the safety management system; (3) draw some recommendations for improving the current safety management system of the diving contractor.
Conclusions
OHS MS requirements of a diving organization
OHSAS 18001:2007 standard defines a model with elements of an effective OH&S management system for an organization and specifies requirements for the elements of the system. OHSAS 18001:2007 standard can be applied to any type and size of organizations (OHSAS 18001:2007).
The Regulations No. 41/1999/QD-TTg requires organizations operating in petroleum industry to have establish and develop effective safety management system but it does not specify a model of safety management system which organizations have to follow. In IMCA D014 – “IMCA International Code of Practice for Offshore Diving”, it does not require diving organizations to establish and maintain a safety management system for their organization. It requires diving organizations to establish a management system and prepare some documents to manage a specific diving project.
A comparison of requirements shows that there are correspondences between OHSAS 18001:2007, Regulations No. 41/1999/QD-TTg and IMCA D014. Documents of a safety management system comply with OHSAS 18001:2007 standard is also fulfilled requirements of Regulations No. 41/1999/QD-TTg. These documents could be reviewed and revised periodically or when necessary as defined by organizations. Documents required by IMCA are more detailed and extended for OHSAS requirements to control operations of a diving organization. Documents required by IMCA have to be reviewed and revised for each diving project.
Assessment of PVMTC’s OHS MS for diving services
The documentations of OHS MS in PVMTC are in general compliance with the Vietnam legal requirements. There are only two documents need to be prepared as required by regulations. Those are lists of relevant regulatory requirements and lists of specific requirements that fulfill the regulatory requirements in the area of safety and working environment.
The review of documentation and records of diving systems and of diving projects in Technical Services Department has shown that documentation; procedures and guidelines, and records for routine activities of diving system are prepared and performed very good and fulfill IMCA requirements. However, documentation required by IMCA to manage a diving project is not prepared adequately and regularly. They are prepared only when clients request. For example:
Diving project plan
Safety management system interface documents
Risk management process matrix
Risk assessment
Management of change procedure
Procedure for site-specific risk assessments
Procedures for control assessed hazards and risks
Recommendation to Improve the Existing OHS MS of PVMTC
From findings of the assessment some recommendations are suggested to improve the existing OHS MS of PVMTC to desired safety management system which complies with OHSAS 18001:2007 and fulfills specific requirements to which the organization subscribes.
1. Adapt the existing OHS MS to conform to OHSAS 18001:2007 and integrate with quality management system.
Improve organization structure focus on project management structure.
3. Identify and assess applicable legal requirements and other requirements.
4. Perform risk & hazard assessment for all activities of a diving project.
5. Standardize and document procedures for some routine activities and processes of a diving project.
6. Implement and maintain OHS programs and procedures
His thesis abstract is copied and posted.
ABSTRACT
Offshore diving is reputed a dangerous and risky job. Safety requirements in diving operations are very high and strict. A commercial diving contractor has to conform to various regulations, standards, codes and guidelines from local governments, the clients, and the insurers of the diving contractor or other outside organizations, societies, advisory committees and associations. To establish, implement or assess OHS MS of a diving contractor, beside applications international standards, national laws and regulations and diving specific requirements should be considered.
The aim of this thesis is to review requirements for safety management system of a diving organization, assess safety management system for diving services of PetroVietnam Manpower Training College (PVMTC) to identify non-conformances of the safety management system. From result of the assessment, some recommendations are suggested to improve the system.
The OSH MS assessment was conducted using checklists based on reviewing of requirements of OSHAS 18001:2007, Vietnamese applicable laws and regulations, and of diving specific requirements of IMCA. The assessment consisted of review of written documentation and performance of the existing OHS MS. No formal interviews or walk-through inspections of operations and work areas was done.
Finally, conclusions and recommendations for improving the existing system of PVMTC are drawn from findings of the assessment.
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