Friday, 16 April 2010

Case Studies of Solid Waste Collection in Karachi, Pakistan

Like in most of the Third world cities, Karachi's development authorities have also not been able to cope with the enormous population growth. For a city with a rapidly expanding population, the existing waste management capacity is far too inadequate and outmoded and needs to be improved; otherwise the problem of inefficient solid waste management services will continue to haunt those living in urban areas.

In order to improve the existing situation of solid waste management in the city of Karachi in Pakistan, there is a need to develop an effective linkage between the community, the informal sector and local government. One major problem is that the local authorities are reluctant to collect garbage from the low-income settlements. In absence of municipal services for solid waste collection and disposal, low income families have been organizing themselves to collect and dispose solid waste.

Mr. Gill M. Rizwan made a study which major objective was to improve the SWM system in Karachi through enhancing the participation of NGO and CBO. The sub- objectives were to: (1) identify the existing situation regarding current SWMS in Karachi and to evaluate the effectiveness of the role of KMC to overcome these challenges; (2) assess the roles of CBOs & NGOs in SWMS in the study areas and identify the main problems they are facing; and (3) propose the potential solutions and specific recommendations to KMC to solve out these problems and effectively improve the SWMS in Karachi.

Conclusions

Conclusion 1
The survey results showed that the average satisfaction level of the users regarding the performance of the different organizations was very low. However, each socio-economic level had different perceptions about the performance of KMC, CBO and their combined performance. The priority consideration of KMC for SWM was found to be varying as per the income level of an area. Higher socio-economic level group portray high community initiatives as well as high consideration by KMC eventually maintaining a well-managed solid waste management system.

Conclusion 2
Regarding the performance ranking by the management team i.e. by KMC, CBO and NGO, each party of management team ranked them as operating at their best but ranked the other two and their combined performance as less satisfactory. This portrays that each of the party is not satisfied with the performance of the other indicating poor co-ordination and communication. However, after the involvement of private sector the performance of individual teams especially KMC was ranked to be significantly improved.

Conclusion 3
Regarding the existing problems in private sector involvement in solid waste management in overall Karachi area, five major types of problematic areas were enlisted to be ranked by each of the management team. Overall, the most problematic area was the management aspect and then financial aspect. However, the perceptions of each management group about the different problematic area vary except for the management aspect since each of the party realized it as being the most problematic area.

Conclusion 4
The underlying factors for each of the problematic aspects were also ranked.
a. Regarding the factors causing, Low community participation, low willingness to pay was the major factor identified in the survey. The other important factors include low willingness to participate in the cleanliness program and low willingness in keeping areas clean.

b. Inefficient Management was mainly caused due to lack of accountability to the community and low willingness to manage. This clearly shows the lack of proper legislative definition of responsibilities and ineffective controlling and monitoring device.

c. Problems in social operations were mainly caused by low salary of operators and low and bad working condition of workers. Unreliable service and space problems were also identified as the major issues which are the most important factors for a sustainable SWM system.

d. Major financial problem was caused by inadequate fee collection causing cost recovery problems.

e. Lack of co-ordination with municipality was mainly due to lack of assistance to be provided by municipality.

Conclusion 5
Solutions as suggested in open answers from each of the management team were grouped for each of the problematic aspects and listed in Table below as per the majority and priority of the respondents.


Recommendations

1. Increasing community participation from households
a. Education and Awareness
b. Provision of appropriate incentives and penalty
c. Develop a control system for periodic clean-up programs

2. Improving Managerial Aspect
a. Define Rights, Responsibilities and performance Control
b. Training and exchange visits for management Committee

3. Suggestions to improve Social operations
a. Consultation with local NGOs and opinion leaders
b. Official Recognition of Operators with additional facilities
c. Relate payment to performance plus division of collection areas and responsibilities
d. Integrate private entrepreneurs into the project

4. Suggestions to overcome Financial Problem
a. Fees based on income level
b. Change system of payment and give collectors more personal benefits
c. Add income generating recycling systems
d. Carry out Socio-economic feasibility study and improve financial control

5. Suggestions for enhancing the co-operation with Municipality
a. Involve local authority from the beginning and the structures facilitation of formal and informal co-operation.b. Extend the services to include secondary

Wednesday, 14 April 2010

Building an Innovation Management System in a Construction Multi-Business Corporation

The world today is changing rapidly and extensively that has been generating a highly competitive and turbulent business environment. Thus, organizations are greatly exposed to failure or bankruptcy unless they are able to innovate in order to cope with new challenging situations. Construction industry is often said that it is not very innovative in comparing with other industries such as aerospace or electronic. Construction multi-business corporations even have to face greater challenges for survival and growth. Since, they are usually relatively complicated entities. Furthermore, in construction multi-business corporations the communication in organization and coordination of activities, between different organizational levels, between different business units or divisions or departments as well as between projects’ sites are extremely complex. This complication generates many difficulties in encouraging, capturing and implementing innovation in each project and in the firm.

In Vietnam, the construction industry has been growing dramatically in recent decades. Under the condition of market economy, the private sector is getting stronger that create more competitive business environment. Moreover, the construction projects in Vietnam have been becoming much more sophisticated that are accompanied with more stringent requirements from the Clients, and fund providers. These sophisticated projects are often demanding technologies that are higher than the capacities of any Vietnamese contractors. Consequently, Vietnam construction industry has been becoming fertile land for foreign construction corporations to exploit. In order to survive in this competitive environment, Vietnamese construction corporations must find the ways to enhance and develop their competencies. Effective innovation development and implementation is considered as an essential method for such improvement. Hence, study innovation in the context of Vietnamese construction industry is completely necessary.

So, with all the challenges and problems that the construction multi-business corporations have to face and solve effectively in order to survive and thrive in present chaotic and unpredictable world, the importance of an innovation management system can not be overlooked. Mr. Nguyen Van Hoai made a study to find answers to the question on how to design an innovation management system that can be applied to promote and implement effectively the innovation in construction multi-business corporations. The main objective of his study is to build an innovation management system that is able to manage and the innovation in construction multi-business corporations so that the innovation is increased, promoted and implemented toward the organizational objectives’ achievement. In order to achieve his main objective, the following sub-objectives were established:

1. Develop and propose the theoretical framework with its critical attributes for Innovation Management System in Construction Multi-business Corporation.

2. Apply the proposed framework for investigating practical innovation in a Construction Multi-business Corporation in order to discover its strengths and weaknesses.

3. Finally, make recommendation to propose an appropriate and effective Innovation management system in Construction Multi-business Corporations.

Conclusions

Practical innovation scenarios in VINACONEX

The framework is used to design the questionnaire, which was applied to investigate the practical innovation scenarios in a construction multi-business corporation. VINACONEX has been selected for the investigation. A hundred of questionnaires have been sent out and 72 useable completed questionnaires have been received. The data analysis has revealed general innovation scenarios of VINACONEX including the strengths and weaknesses of the management control system.

Innovation implementation

It is concluded that VINACONEX has been implementing the product, process and administrative innovations. The product and process innovations were implemented more frequently and exerted greater impacts on the performance and development of the Corporation.

VINACONEX has used variety of information sources for innovation implementations, which are rival companies, government, management, consultants, clients and in-house R&D, research institutions, professional seminars, publications, conferences and meetings, and suppliers. However, the information flow from research institutions, professional seminars, publications, conferences and meetings is blocked in management level and not dispersed to the employees in the Corporation.

The innovation implementations in VINACONEX is usually obstructed by lack of qualified personnel, lack of technical equipment, lack of finance, lack of information about technology, high cost, high risk, and lack of management commitment. The top management in VINACONEX has not concerned and committed sufficiently to incremental innovation in the Corporation.

The innovation drivers in VINACONEX from external business environment include technology, construction market, government law/regulations, and economy at large.

The management system
The management system represented by management and leadership, strategies, structure, resources, culture and climate, and communication and collaboration is not strongly supportive to innovation implementation in the Corporation. Communication and collaboration is the strongest attribute in management system in which there are both strong and weak elements.

The second strong attribute of management system is the innovation strategies. The innovation strategies are included in the corporation strategies for the development of VINACONEX. They links with clear and measurable objectives, have long term focus and thrust.

Leadership is the third strong attributes of management system. The strongest elements of leadership are that the top management are emphasizing strongly on getting work accomplished and has clear vision to drive innovation implementation.

Regarding to resources, the strongest element is effective application of standard criteria for selection and recruitment personnel. The Corporation provides sufficient human resources, necessary tool and equipments for innovation implementation. In addition, the key person such as innovation leader, champion, innovator, gatekeeper and so on always present in the Corporation for innovation implementation. Time used for innovation implementation is also adequately allocated to the personnel doing innovation implementation. However, it is not clear that adequate annual budget is allocated and finance is always made available for innovation implementation in the Corporation. The training is also not provided sufficiently to the personnel of the Corporation.

Structure is the weakest attribute of management system. The Corporation has frequently applied cross-functional team for innovation implementations. The decision making is also decentralized to the lower level of management. Therefore, the structure of VINACONEX is relatively appropriate to facilitate the innovation implementation.

The other relatively weak element of the management system is culture and climate. It contains equally five strong elements and five weak elements. It is good elements for innovation implementation that all employees are encouraged to participate in generating new ideas and high priority is given for learning and experimenting new ideas. In addition, in the Corporation conflicts are handled effectively by resolving the issues openly among involving parties with or without higher level supervisor.

The operational level

At the organizational level, the innovation implementation can be initiated by project size, business plan, project execution difficult conditions, project challenging scopes, project complexity, project types, the desire improvement of project personnel, and availability of new technology. Innovation implementations in VINACONEX are also significantly influenced by the project constraints, which include cost, quality, time, technology, and design. Availability of technology and stringent quality requirements from clients promote the innovation implementation in the construction projects. However, limited time and budget allocated to the project execution will hinder the innovation implementation in the construction project.

Project team is a relative strong attribute of VINACONEX in supporting innovation implementation in construction projects. For innovation implementation in construction project, the Corporation attempts to integrate as early and completely as possible the project parties as a team. In addition, the Corporation always endeavors to integrate the high efforts from project parties in order to achieve the success of innovation implementation.

Regarding to communication and collaboration, a formal procedure of communication and collaboration is always applied for any construction project executed by VINACONEX. Therefore, communication and collaboration are very effective within project team and among the project parties. Nevertheless, multi-directional and informal communication and collaboration are not strongly encouraged in construction project.

Recommendations

Based on the strengths and weakness that has been drawn in earlier sections, the recommendations for improvements are proposed as following.

Regarding scale of innovation, it has been mentioned that radical innovations have much higher impact on the development of the Corporation than incremental innovations. It is recommended that the management level should give sufficient attention and stronger committed to incremental innovations and the employees should involve more significantly to radical innovation implementations.

For the information sources for innovation implementation, it has been indicated that suppliers, education and research institutions, and professional seminars, conferences, publications, and meetings are very imperative information sources for innovation implementation. Since, in practice huge load of innovation information and knowledge flows to the firms from these sources. Hence, the Corporation should create facilities or mechanism for the information from these sources dispersing wider and deeper within the Corporation. This will definitely promote the innovation implementation in the Corporation.

In concerning toward the communication and collaboration in the Corporation, it is identified that innovation strategies are the strategies that promotes the innovation implementations in the Corporation. As a result, it is recommended that the Corporation should apply certain facilities such as brochure, handout and so on or mechanism such as meeting to communicate effectively the innovation strategies and performance measure, which will enhance the innovation implementation in the Corporation. In addition, the necessary information should also be made available and easily accessed by all personnel of the Corporation. This will promote better information flow and knowledge sharing in the Corporation.

On the issues of leadership, it is apparent that lack of adoption of consensus and shared approach of decision making and participative decision making style will block the bottom up flow of creative ideas, which will hinder the innovation implementation in the Corporation. Therefore, the decision makers in VINACONEX should change their decision making approach in order to utilize better the intellectual capabilities of personnel in the Corporation. The managers in VINACONEX should also provide better and more sufficient feedback to the employee so that they can improve their works related to innovation implementation.

Resources are critical for innovation implementation, especially financial resources, which allows the Corporation to purchase innovations, absorb failure, and bear the cost and so on. Trainings are necessary to enhance the capabilities of personnel in organization, which is beneficial to innovation implementation. This is due to the fact that success of innovation implementation relies essentially on the competencies of personnel. Insufficient and unsatisfactory training may inhibit the success of innovation implementation. Therefore, the Corporation should provide better trainings to the personnel.

Regarding to the structure of VINACONEX, it has been indicated that freedom or autonomy and empowerment librates the personnel. As a result, they are able to work more independently, more creatively and innovatively. Therefore, although the VINACONEX’s structure is still considered appropriate for innovation implementation, it should be changed to fit better with the present dynamic environment. The change should be moved toward a more flexible structure that is able to provide the personnel more freedom for creativity and innovation implementations.

Culture and climate has been identified to be crucial in promoting the innovation implementation. The culture and climate in VINACONEX is not strongly supportive to the innovation implementation. Thus, tolerating failure and mistake can generate the culture and climate that personnel are encouraged to experiment the new ideas, to work more creatively and innovatively. The Corporation should also encourage constructive criticism and support better the change initiation that will promote the innovation implementation in the Corporation.

His thesis abstract is copied and posted.

Abstracts

At present, construction multi-business corporations have to face great challenges from highly competitive and dynamic business environment. Innovation is considered as one of the best solutions to overcome those challenges for development and prosperity. Therefore, it is apparent that there is the demand of an appropriate management system, which is able to promote the successful innovation implementation in construction multi-business corporations. This study has been conducted aiming at to satisfy that demand. Firstly, a conceptual framework with its critical attributes has been developed for innovation management system in construction multi-business corporations through extensive literature review. Secondly, the conceptual framework was applied for investigating practical innovation in a selected construction multi-business corporation in Vietnam, which is VINACONEX. Based on the strengths and weaknesses revealed from the investigation, recommendations were made to propose and appropriate innovation management system in construction multi-business corporation.

Monday, 12 April 2010

Reliability-Based Optimal Inspection Interval

Infrastructure management in the past may not used the optimal planning for maintenance and rehabilitation. Many governments developed methods for the maintenance operation and rehabilitation planning. They concerned the three main processes. Those are, how to inspect the performance of the infrastructure, the appropriate frequency of inspection data, and the best way to find the maintenance and rehabilitation technique on the appropriate time.

Most development interest in the performance index such as condition index or roughness index, it is the method to optimize the maintenance and rehabilitation planning, and the optimal inspection time interval. The sample unit management in term of the number of sample unit and inspection interval does not have the optimal technique. This omission made many problems in every country about the inspection tradeoff between time, cost, and accuracy.

Mr. Dolyawich Nongpong made a study which main objective was to optimize the inspection interval for the pavement inspection. The secondary objectives of his study were to (1) develop the reliability functions that are derived from IRI data. This function can help deciding the inspection interval and pavement reliability, (2) show the percentage of inspection sample reduction based on the traffic volume of the pavement; (3) develop the modified model that is derived from the cost data. This function is developed based on the number of inspection sample; and (4) show the percentage difference of the inspection costs between the calculation cost and the actual cost.

Conclusions

The important conclusions for Mr. Nongpong’s research are:
1. The optimal inspection interval is related to the traffic volume and the pavement performance.
2. The current technique to collect IRI data every kilometer is not the optimal sample.
3. The most appropriate reliability function is the lognormal type.
4. The cost model is reliable to estimate the cost for inspection IRI data.
5. The reliability functions in this study are reliable and acceptable.
6. The optimal inspection intervals in this study are reliable and acceptable.
7. The cost model requires the development for more reasonable cost factor in the future work when the cost data is available.

His thesis abstract is copied and posted.

ABSTRACT

Highway agencies spend a large amount of budget in collecting the pavement condition data. Visual inspection is a time-consuming and expensive task. Most agencies sample the inspection areas and use the selected sample size to represent the condition of the entire area. Decreasing the number of sample size can reduce the total inspection cost and time, but it may jeopardize the overall data quality. Reliability can be defined as a probability of a non-failure over the specific time. The reliability of the pavement plays an important role in the life cycle cost analysis. It can be viewed as the subset of the pavement quality that satisfies the users’ requirement and can be used to determine the expected service life of the pavement as well.

This main objective of this research is to apply the reliability theory to determine the optimal pavement inspection intervals and the appropriate sample size for pavement inspection. The relationship between reliability values and the number of sample units is investigated. The analysis used in this study is based on the relationship between the number of sample units and their reliability values. Traffic volumes are grouped to investigate the sensitivity of different parameters on the reliability values. This paper presented the optimal pavement inspection intervals determined based on the developed reliability values and the appropriate inspection sample size for highway agencies to balance between data quality issue and inspection cost control.

Thursday, 8 April 2010

Collaborative Solving Problems Between Consultants and Contractors

During the construction stage, many problems frequently arise especially in large-scale project. Moreover, those problems are extremely needed rapid decision making from the proper authority because the nature of construction projects is dynamic and fast moving. Consultants and contractors that act as center of project communications and collaborations should be able to solve or reduce the negative effects of those problems (Wickham, 1999). For effective and efficient projects, there are several reasons that need proper manners of consultants and contractors for enhancing collaborations especially when contracting problems arise.

In construction project, collaboration is a key for project success, especially when there are contracting problems such as change order, design-related, differing site condition and progress payment. The benefit of timely solving problems is located through all stakeholders. Every party has win-win attitude in for rapidly solved problems that occur during construction stage and lead projects to be effectiveness and efficiency.

Miss Wijittra Mahavarakorn made a study which main objective was to find out treatment methods for collaborative improvement when such problems arise. To achieve the major objectives, four sub-objectives was needed to accomplish such as follows:

1. to identify collaborative attributes related with contracting problems during construction stage;
2. to examine differences in perceptions between consultants and contractors regarding collaborations when contracting problem arise;
3. to investigate collaborative practices to find out between consultants and contractors causing by improper collaborations; and
4. to propose recommendations on how to enhance collaborative problem solving.

Conclusions

According to the collaborative matrix model, this research is logically summarized and divided into two sections that are collaborative perceptions through five collaborative attributes and six contracting problems. For more clarification, findings of consultants and contractors’ perceptions are summarized into the highest and lowest collaborations from collaborative attributes and contracting problems in followings.

Collaborative Perceptions through Collaborative Attributes

In overall, results found that consultants are higher perceptions in collaboration than contractors. Moreover, rationally utilitarian of logical reason in actions and decision making (Rationale) is the highest collaboration by collaborative attributes from consultants and contractors. Moreover, adaptability of consultants and contractors to change themselves in networks and information environment (Adaptability) is the lowest perceptions in collaboration.

a. Rationale: The highest perceptions of rationally utilitarian of logical reason in actions and decision making in contracting problems from consultants and contractors is negotiated price/unit price of varied works. The contracting problem of differing site condition is the lowest perceptions from consultants and contractors.

b. Goal-orientation: The highest perceptions of always concerned a goal in every pursuit in contracting problems from consultants and contractors is error and unclear drawings and specifications. The contracting problem of timely payment is the lowest perceptions from consultants and contractors.

c. Reactivity: The highest perceptions of timely responsive actions in contracting problems from consultants and contractors is differing site condition and timely payment from the owner. The contracting problem of negotiated extra quantities of milestone payment is the lowest perceptions from consultants and contractors.

d. Cooperation: The highest perception of social ability to interact with others in contracting problems from consultants and contractors is negotiated extra quantities of milestone payment. The contracting problem of timely payment is the lowest perceptions from consultants and contractors.

e. Adaptability: The highest perception to change themselves in networks and information environments in contracting problems from consultants and contractors is differing site condition. The contracting problem of timely payment is the lowest perceptions from consultants and contractors.

2. Collaborative Perceptions through Contracting Problems

In overall of contracting problems, results found that consultants are higher perceptions in collaboration than contractors. Moreover, the contracting problem of negotiated price/unit price of varied works is the highest collaboration from consultants and contractors. Moreover, the contracting problem in timely payment from the owner is the lowest perceptions in collaborations of consultants and contractors.

a. Negotiated Price or Unit Price of Varied Works
b. Evaluated Time or Cost Compensations from Change Order Impacts
c. Error and Unclear Drawings and Specifications:
d. Differing Site Condition of under or over Ground
e. Negotiated in Extra Quantities of Milestone Payment between Actual and Contact Document
f. Timely Payment from the Owner

In summary, consultants and contractors’ perceptions are identified into two main perspectives that are collaborations and contracting problems. Results found that rationally utilitarian of logical reason in actions and decision making (Rationale) and ability to change themselves in networks and information environment (Adaptability) are the highest and lowest collaborations from consultants and contractors respectively. For another perspective, the problem in negotiated price/unit price of varied works is the highest collaborations from consultants and contractors. Timely payment from the owner is the lowest collaborations in contracting problems from consultants and contractors. Moreover, consultants perceive in collaboration higher than contractors. There are different perceptions among them in all contracting problems. Therefore, different perceptions are required to treat by consultants and contractors in the proper implications to enhance collaboration among multi-parties.

3. Recommendations for Improvement

For achieving the final objective of this study, the last research objective is completed by proposing treatment methods for consultants and contractors’ improvement through contracting problems as illustrated in figure 1. In the previous section, collaborative manners are provided for both consultants and contractors according with collaborative attributes and contracting problems. In this section, treatment methods are recommended proper collaborations for inter-correlation among consultants and contractors during preplanning and construction stage. Details of treatment methods in six contracting problems for improvement are illustrated in table 1. Benefits of this survey are clearer understanding for consultants and contractors in the existing phenomenon of other perceptions when contracting problems arise. Furthermore, benefits of recommendations utilize for proactive implementations systems of consultants and contractors’ collaborations.
Her thesis abstract is copied and posted below.

ABSTRACT

Due to increasing demand from customers, construction projects are getting more complicated. Therefore, professionals in construction business are forced to enhance their construction skills and competencies in order to effectively deliver projects as customers’ requirements. For that reason, consultants and contractors are a center of collaborations among multi-parties in construction projects for running project smoothly. Therefore, the appropriate collaboration is one of the most essential success factors for project effectiveness. This research is aimed to find out how to enhance collaborations when contracting problems arise.

To achieve the objective of study, collaborative attributes are framed and used to explore existing perceptive practices in contracting problems including rationale, goal orientation, reactivity, cooperation, and adaptability attribute. Contracting problems are focused on change order, design-related, differing site condition, and progress payment. The hypothesis of this research is statistically analyzed by the T-Test method to find out similar or different perceptions among consultants and contractors. Consequently, questionnaire survey was applied from project managers of contractors and consultants’ companies. Additionally, interviews were conducted for in-depth information. The result of collaborative perceptions between contractors and consultants is depicted by Relative Index (R.I.) and the collaborative level.
Results were found that consultants assessed themselves to be more collaboration, when contracting problems arise, than contractors. The hypothesis was statistically tested and demonstrated that there are different perceptions among consultants and contractors in investigated contracting problems. Moreover, findings found that rationale and adaptability are the highest and lowest collaborations respectively. Negotiated price/unit price of varied works is the highest collaborations in contracting perspectives from consultants and contractors. Additionally, the contracting problem of timely payment from the owner is lowest collaborations. Therefore, this research recommends: (1) designing and implementing collaboration management systems for given projects’ environment; and (2) providing clear contracting clauses in contract document for enhancing collaborations for typical contracting problems.

Monday, 5 April 2010

An Application of Asset Valuation for Railroad Tracks

The concept of asset valuation, which is the part of asset management, has been widely accepted from many agencies in both private and public sectors. In Thailand, many public agencies have addressed the concept of asset management and incorporated into their infrastructure management system. The public transportation agencies such as the Department of Highways (DOH) have applied the concept of asset management into its infrastructure management such as Pavement Management System (PMS) and Bridge Management System (BMS). This concept helps DOH manage their infrastructures more effective in allocate maintenance resources and manage the agency maintenance funds.

Valuing the value of asset is one of the important procedures that play an important role in asset management. The value of asset can be incorporated in the financial statement of the company. Moreover, it plays as one of the criterion that the managers use in the decision-making.
Reporting the asset in monetary term can help the managers or politicians understand the value of assets easier than the engineering term and can help them understand the return on benefits when maintenance is applied. Mr. Chinnawit Yamkruan conducted a study in which he applied different valuation techniques to evaluate the value of railroad tracks and analyzes the sensitivity of the track value in order to enhance the knowledge of the decision-makers and to improve the efficiency of the decision-making.

The main objective of his research was to develop the framework for valuing railroad track of the State Railway of Thailand (SRT) in order to assist the maintenance program and to increase the efficiency of the decision-making process. The secondary objectives of his research were to: (1) apply different asset valuation approaches to determine the value of railroad track; and (2) recommend the advantage and disadvantage of each asset valuation techniques.

Conclusion

Railroad track value comparison

1. Cost Approach
According to the results of track values from the cost approach, that track value of the Northern line is higher than track value of the Eastern line. Most of railroad tracks in the Northern line are in a good condition. This study also found out that track value appears to be sensitive to QI value when a change of QI value results a change in the recommended maintenance treatment type of SRT since QI value has a direct relationship with a physical deterioration. Therefore, when the conditions of railroad track decline or QI values increase, it will make the physical deterioration increase and track values decrease or when QI values decrease, track values will increase.
Disadvantages of the cost approaches are: there are many methods to calculate parameters of the cost approach. It might make the asset value of the same asset to be different if the appraisers use different methods.

2. Income Capitalization Approach
Based on the results of track values from the income capitalization approach in, the track value of the Northern line is higher than track value of the Eastern line approximately two times. Because the net operating incomes (NOI) of the Northern line are much higher than the net operating incomes of the Eastern line. This approach estimates track values by interesting only the potential of income generating of both lines. Therefore, it makes a difference of track values of both lines is high.

Disadvantages of the cost approaches are; asset value from the income capitalization approach does not have the relationship to the real condition of the asset.

3. Sensitivity analyses of relevant variables
Test cases of relevant variables are analyzed to investigate their impacts on track values. This study performs the sensitivity analyses in both the relevant variables of the cost approach and the income capitalization approach. The summarized results of the sensitivity analyses of these two approaches are following below:

a. Sensitivity analysis of track values from the cost approach

In the sensitivity analyses of relevant variable of the cost approach, relevant variables are classified into two categories:

1. Monetary variables - defined as a variable that are related to money, e.g. material price, labor cost and maintenance price.

2. Non-monetary variables are defined as variables that do not related to money, which are Track Quality Index (QI), type of rail, type of sleeper and type of construction standard.
The impacts of different variables were investigated and comparison was performed between a base case and test case.

The sensitivity study of the monetary variables can be summarized as a change in material price and labor cost appear causes a change of track value in the same direction but the change of maintenance price causes the change of track value in the reverse direction. In addition, material price has the impacts on the changes of track value more than labor cost and maintenance price do.

The analysis also reveals that track values are sensitive to the changes in QI value, rail type, sleeper type and construction standard with respect to non-monetary variables. According to the sensitivity study of QI values, track value appears to be sensitive to QI value results in a change of the recommended maintenance treatment from SRT.

The results of the sensitivity study of rail type, sleeper type and construction standard show that track value will increase when rail type, sleeper type and construction standard are changed from the exits type to the better type. In addition, it should be noted that the change of the construction standard has very high impact to the changes of track values.

b. Sensitivity analysis of track values from the income capitalization approach
In the sensitivity analysis of track values from the income capitalization approach, relevant variables that are applied in this analysis are revenue, expenditure and discount rate. According to the sensitivity analyses results, it can be summarized that a change in revenue and discount rate appear to cause a change of track value in the same direction but the change of expenditure causes the change of track value in the reverse direction. Moreover, revenue has the impacts on the changes of track value more than discount rate and expenditure do.

His thesis abstract is copied and posted.

ABTRACT
Railroad track maintenance is a part of infrastructure maintenance of the State Railway of Thailand (SRT). In reporting the maintenance programs, results from improving the condition of railroad tracks are reported to the top of organization or the politicians in the form of engineering term. Reporting the maintenance programs in the engineering term is difficult for the top managers or politicians to imagine or understand the benefits or affects when the maintenance program is applied.

This study focuses on an application of the asset valuation approaches in order to develop the framework for valuing railroad tracks and demonstrate reporting the railroad track in monetary term. Railroad tracks of the Northern line and the Eastern line of SRT are used as the case studies in this study. This study applies two valuation approaches, which are cost approach and income capitalization approach, in estimating value of railroad tracks. In addition, sensitivity analyses of relevant variables are performed to investigate their impact on railroad track values.
Results of this study show that railroad track value, which are derived from the cost approach, are different from the track values that are derived from the income capitalization approach. The differences of railroad track values between these two approaches are caused from the different interest in estimating asset value. The results of the sensitivity analyses of relevant variables in both cost approach and income capitalization approach show that different variables have effects on railroad track value at different levels.

Wednesday, 31 March 2010

The Use of Planning and Control Techniques in Construction Projects in Thailand

Many developed planning and control techniques have been applied in the construction industry. With the increasing availability of various management techniques evolved from past, to select an appropriate technique to manage construction projects is becoming a crucial challenge. As the project management objectives are time, cost, and quality, this study will more focused on comparing between planning and control technique of medium-scale and large-scale projects those are operating in Thai construction industry. Analyzing will conduct in term of merely cost and time rather than quality follow to the study of Laufer and Tucker (1987). They further pointed out that between cost and time, formal planning effort of most construction companies has been primarily focused on time planning, and to a lesser extent on resource allocation and its cash-flow implications. However the emphasis in schedule and budget planning and control of a construction project is because of the realization by the contractor and the owner of the severe implications of schedule and budget overruns. In today's fast-paced construction environment, project owners are increasingly placing greater demands on contractors to complete projects in record time and under budget. This is because time and cost is critical for owners in attaining first in the market advantage over competitors. In short, no party would gain from schedule and budget overruns.

Regarding to above-mentioned problems, efficient planning and control techniques are an approach to alleviate and solve the problems. However in large-scale construction projects, there will be numerous, dynamic, and complex interaction among activities and planning/control system comparing with medium-scale one. The uncertain and rapid changing conditions are always happen, the unanticipated problems might be issued anytime. Consequently, the practiced planning and control techniques will be so complex and complicated. The important question is raised that how the construction projects manager could utilize such techniques effectively and efficiently.

Mr. Kriengkai Payapwattanawong made a research which major objective is to find approaches in improving planning and control practice in Thai construction projects. In order to achieve his objective, the following minor objectives need to be accomplished: (1) to identify criteria considered for adopting and installing planning and control techniques covering majority of planning and control techniques available in the market; (2) to apply such criteria to examine the planning and control practiced of both large-scale and medium-scale Thai construction projects and identify the strengths and weaknesses of their planning and control techniques employed; and (3) to recommend appropriate approach for both large-scale and medium-scale Thai construction projects to adopt and install an efficient planning and control techniques that could enhance project planning and control capability.

Conclusions

The needs to more effective and appropriate planning and control technique

The study shows that respondents rank the criticality level of ‘Effective and appropriate planning and control techniques’ as high whereas only medium satisfaction level of ‘their currently used techniques’ is emerging. This reflects that the investigation for improving the currently used techniques is necessary.

The critical criteria considered for adopting and installing planning and control technique

Results showed that both medium and large-scale construction projects primarily give important to requirement of contract/clients, ease for using and understanding, and available of sufficient knowledge and expertise of planner. Moreover, capability in application with computer software and ease of updated are also considered as critical criteria. However, the analysis shows that there are no significant differences between high influence criteria of medium and large-scale construction projects. Even though there are no significant differences in high influence criteria, significant differences are found between low and moderate influence criteria of medium and large-scale construction projects. Complexity of work (activities), Operation cost, Accuracy of technique, Well-known and widely used technique, and Modernization of technique (Development level) are significantly considered more by large-scale project comparing with medium-scale one. This means that large-scale projects require more advanced and high capability of planning and control techniques for cope with more management difficulties. However, these criteria are not appeared in high level of influencing for adopting and installing the techniques.

The currently practiced planning and control techniques in Thai construction projects

The survey result indicated innovative and advanced planning and control techniques are very infrequently used. However, it has trend to be more used of advanced techniques in large-scale construction projects. But not explicitly emerge. They perceive that their used techniques are easy for using and understanding. Large-scale projects primarily accept that the techniques are widely used and familiar for using. On the other hand, medium-scale projects have perceived that their used techniques can facilitate to achieve better understanding objectives and easy to determine critical path. But their used techniques are still difficult to model ‘real world’, failed to predict problems, and inadequate for complex projects. These might be cause of lacking of training and expertise in their projects.

The obstructions of implementing the better or advanced planning and control techniques in Thai construction projects and suggestions for improvement

It was found out that most of large-scale and medium-scale Thai construction projects find advanced planning and control techniques a definite advantage. A key factor in all successful applications is personnel training of familiarization and advanced techniques’ benefits acknowledgement.

The Thai construction projects need to improve some aspects in the planning and control system areas as presented in the table below, and then the efficient and effective construction management would be achieved.



His thesis abstract is copied and posted.

Abstract

Increasing global competition and rapid technological development are pushing many industries to give more attention to improving the planning and control. Construction is one of the largest industries in many countries. However, the industry has been experiencing such problems as cost overrun, delayed completion, disputes and even litigation. Planning and control techniques are identified among the top potential areas needing improvements. Adopting and installing the efficient technique is important for more effective management. However, an efficient technique is difficult to be adopted and installed. This research aims to identify the criteria considered for successful adopting and installing the techniques, as well as pointing out key problems and difficulties faced of both medium and large-scale construction projects. The currently applied techniques, their strengths, and weaknesses are also examined. Structured questionnaires were conducted with project engineers of 31 medium-scale projects and 35 large-scale projects. The t-test and mean ranking as statistics test methods were used to analyze the data and compare the different between study groups. The results show that the techniques using of both parties is not much different. Advanced techniques are infrequently adopted and installed. However, significant differences were found between some criteria of two parties. These criteria are considered for adopting and installing the technique such as knowledge and expertise user requirement. As consequence, the study helps planners of both medium and large-scale projects to recognize and evaluate the effectiveness of their current used techniques. It also provides suggestions to overcome some practical problems and obstructions if the new techniques are applied in their construction projects.

Tuesday, 30 March 2010

Management Of Mega Projects: Case Study Of The Second Bangkok International Airport

Second Bangkok International Airport is one of the large engineering projects in the history of Thailand. Construction work of this project is divided into several packages and each package comprises of several projects which are running parallel to each other. Each project is designed and constructed by a number of intercontinental firms and involves many suppliers from different countries. Literature entitles such mega construction projects as programs. Management of such programs is not only complex but also multifaceted. Studying this mega project which has been declared as ‘national priority’, as a whole and specifically from management point of view would be of vast interest.

Mr. Shamas-ur-Rehman Toor conducted a research study in 2005 to study the aspects of interface management, coordination and communication among numerous partakers of the project. The questions explored in his research were:

1. How do different parties (Clients, Consultants, Designers, and Contractors) communicate and coordinate on this large construction project; what kind of communication and coordination tools are they using in their work? And what problems are they facing in doing it?

2. What are the key leadership traits of successful project leaders on large construction projects, and how are they affected by the involvement of participants from a range of national and cultural backgrounds?

3. What are the Key Performance Indicators (KPIs), Critical Success Factors (CSFs), and most significant problems faced on large construction projects? What special issues arise due to the presence of a range of different cultural elements on such mega projects?

4. To what extent can we generalize, with validity, the findings related to this airport construction project and what further research do the findings indicate we should undertake?

Conclusions

Results have shown that perception of different project participants is similar about the subject of communication and coordination interface management on large project and the case study project. Though satisfaction on current health of communication and coordination interface management has been low, usefulness of information has been rated satisfactory. Low satisfaction has been a result of several barriers which are: language, lack of experience of staff, lack of experience of project manager, lack of experience and knowledge of subcontractor, difference in local construction practices, lack of cooperation of government agencies, lack of foremen’s experience and knowledge and bureaucratic behavior of employer.

In second part of this study, traits and skills of project leaders which make them successful were investigated. Different leadership behaviors were also examined to find which styles were more important for success. As a result, four Rs were devised: revolutionary, resolving, reverent and rewarding. These four characteristics of project leaders are crucial for success on large construction projects. Moreover, it was found that communication, team, personal and interpersonal and management skills were most important for project leaders. Technical skills were rate low on importance scale along with computer and specialty trades’ skills. It was also found that poor communication skills, wrongful use of authority and lack of experience make project leaders incompetent.

In third part, critical success factors, key performance indicators and problems on large construction projects were aimed for investigation. Among the top critical success factors, effective planning and control, sufficient resources and clear and detailed written contract, defined goals and competent project manager were given higher ranking. Among the key performance indicators, the traditional triangle of completion on time, under budget and according to specification was given high rating along with two more indicators which are safety and efficiency. It reveals that project managers are conscious about the traditional iron triangle of project management but they do consider safety and efficiency as important measures of performance on large construction projects.

His thesis abstract is copied and posted.

ABSTRACT

Construction industry due to its complex nature and dynamic environment is considered to be a difficult area to conduct research. Numerous studies have been conducted on various topics of project management. These studies have their own boundary conditions, limitations and constraints. Generalizing the results for the whole construction industry after analyzing few projects in particular area is difficult. Also, every project in construction industry is different from others in many ways even when it is copied from another similar project. That is the reason that case studies have become common in research related to construction industry. The current research is also a case study of a construction project which is situated in Thailand. Suvarnabhumi Airport is considered to be the biggest construction project in the history of Thailand. The project is exceptional in many terms. It comprises of five work packages and forty eight construction contracts. Several experts from all over the world are participating in the project in different capacities. With a budget of approximately four billion USD, the SBIA has been declared as ‘national priority’ by Thai government.

The current research explores several areas of project management in context of large construction projects, especially the Second Bangkok International Airport. The research has been divided in to three parts. In the first part, it explores the tools and techniques used by project participants to develop communication and coordination interface management on large construction projects. It also investigates the problems faced during developing communication and coordination on complex construction projects. Results have shown that perception of different project participants is similar about the subject of communication and coordination interface management on large project and the case study project. Face-to-face meetings, formal letters and memos, telephones and e-mails have been considered to be used the most on project as communication channels. Though satisfaction on current health of communication and coordination interface management has been low, usefulness of information has been rated satisfactory. Low satisfaction has been a result of several barriers which are: language, lack of experience of staff, lack of experience of project manager, lack of experience and knowledge of subcontractor, difference in local construction practices, lack of cooperation of government agencies, lack of foremen’s experience and knowledge and bureaucratic behavior of employer.

Several problems being faced in coordination on project were due to tight schedule, limited budget, getting access to work area, lack of authority with project manager, absence of most of designers from site, sharing of cost conflicts, several design changes and use of huge and unnecessary documentation. Most of the communication and coordination problems were overcome through face-to-face meetings, telephone calls, using personal informal relations, and letters and memos. Also, severity of problems related to communication and coordination interface management was rated higher by the contractors as compared to other groups. Designers were the other extent as they rated the severity of problems lower.

In second part of this study, traits and skills of project leaders which make them successful were investigated. Different leadership behaviors were also examined to find which styles were more important for success. As a result, four Rs were devised: revolutionary, resolving, reverent and rewarding. These four characteristics of project leaders are crucial for success on large construction projects. Moreover, it was found that communication, team, personal and interpersonal and management skills were most important for project leaders. Technical skills were rate low on importance scale along with computer and specialty trades’ skills. It was also found that poor communication skills, wrongful use of authority and lack of experience make project leaders incompetent. In context of organizational factors which make project leaders ineffective, lack of resources, lack of planning and control, lack of synergy b/w organizational strategy and performance and lack of top management commitment were rated the top factors which make project leaders ineffective.

In third part, critical success factors, key performance indicators and problems on large construction projects were aimed for investigation. Among the top critical success factors, effective planning and control, sufficient resources and clear and detailed written contract, defined goals and competent project manager were given higher ranking. Thirty nine CSFs were given to the respondents and factor analysis was conducted on top twenty which produced four critical COMs for success of large construction projects. These COMs are comprehension, competence, commitment and communication. Among the key performance indicators, the traditional triangle of completion on time, under budget and according to specification was given high rating along with two more indicators which are safety and efficiency. It reveals that project managers are conscious about the traditional iron triangle of project management but they do consider safety and efficiency as important measures of performance on large construction projects.

Respondents were also asked about the problems they face on large construction projects. Problems related to several human and system groups were presented to rating. Results have shown that higher rating was given to human related problems in organizations. Also, higher mean scores were given by the contractors as compared to other project participants. Moreover, problems related to client, designers, contractors and project management/consultants have been ranked high. Only few problems related to labor, site and environment, finance, communication and other factors could achieve high ranking.

The current research has explored several areas of project management and gives a very broad view of how success can be achieved on large construction projects. The study explores the problems which are potential for large construction projects, suggests critical success factors as input to project, devices KPIs to measure the performance on intervals, gives an overview of leadership required for execution and tools, techniques and practices to overcoming communication and coordination issues and developing an adequate communication and coordination interface management system. Wisely considering all these areas definitely leads to the success of a large construction project.

Keywords: Interface Management, Communication and Coordination, Project Success, Leadership, Critical Success Factors, Key Performance Indicators, Problems, Large Construction Projects