Asset Management in Public and Public Private Partnership (PPP) Hydropower Stations in Nepal

The need of infrastructure assets is increasing day by day. People around the globe are facing the infrastructure deficit each day. Generally government focuses on the new development of the infrastructure without keeping view of management of the infrastructure assets. Negligence to maintain asset to its designed performance level well in time will cost huge investment later on to recover (Hudson et al., 1997). In the past, decisions on investment and maintenance of infrastructure were made as per the political considerations, personal experiences, intuition and resource availability. Instead of considering strategic asset management, controlling backlogs as a short term solution was a common practice to measure success in asset management (Too et al., 2006). The conventional approach of asset management focused much on operation and functionality while failed to prove infrastructure asset as an economic resource where investment could be financially feasible, and socially and environmentally sustainable.

Hydropower, an electricity generation from kinetic energy of water, is a type of infrastructure. Electricity generation in Nepal is inadequate, unreliable and expensive (Asian Development Bank, 2009). For the past five year, public hydropower stations are able to generate only 73% of the designed average annual generation. In the year 2009, NEA has suffered a loss of 4.68 billion with cumulative loss of 12.33 billion (NEA Annual Report, 2009). Furthermore, Nepalese people are suffering from load shedding ranging from 2 hours to 16 hours a day for years. A part of these consequences can be attributed to asset management of hydropower stations. In this connection, it is worthwhile to investigate the asset management in hydropower stations of Nepal.

The contribution of asset management towards the overall performance of the asset is very high. However, the asset management is seldom practiced in a structured approach. Mr. Raj Kumar Lakhe made a study which main objective was to compare asset management practices in public and PPP hydropower stations in Nepal applying the investigation criteria developed in this study. To achieve this main objective, these sub-objectives were required:
1. To explore hydropower asset management factors and then develop criteria to investigate asset management practices in hydropower stations in Nepal.

2. To investigate the existing asset management practices in public and PPP hydropower stations of Nepal and conduct comparative study on distinct features which can affect the operation and maintenance sustainability.

3. To propose and recommend for improving the asset management in hydropower stations in Nepal

Conclusions

Investigation Criteria for Asset Management of Hydropower Stations

The investigation criteria for the asset management practices in hydropower stations along with the identified factors are validated by face-to face interview with the professionals in this sector. The verified criteria under seven factors are: 1) Local people as stakeholder, issues from them and attempts to address those issues from the management 2)Organizational development in terms of capacity development, motivation and training to the plant staff 3)Inventory management system in keeping records of operation and maintenance and balance of the spare parts and tools 4) Generation with respect to annul average designed generation and major outages & breakdowns as key performance indicators at the station level 5) Maintenance approaches adopted by the management 6) Provision of project documents as well as maintaining asset database and 7) Existing conditions of structures and equipment assessment process of the hydropower stations. The criteria are applied in each of two public and PPP power stations in this study. The investigation criteria can be used to other hydropower stations to know the internal strengths and weakness of the power station in managing their hydropower assets for operation and maintenance sustainability.

Public and PPP Practices in Hydropower Asset Management

Hydropower stations in Nepal both public and PPP are weak in managing hydropower assets. The cross case synthesis implied that within public and PPP power stations, there are significant differences in asset management practices. The size of the project basically governs the structure of asset management, the larger the power station, the better the asset management practices. However, lower cost of financing, operation and maintenance cost within the estimated amount and maintaining minimum balance of spare parts are observed in public practices. PPP power stations have shown better structured asset management in terms of project implementation, stakeholder relationship, organizational development, maintaining asset database, monitoring asset condition and carrying preventive maintenance for high reliability. The research findings on distinct features in asset management of public and PPP hydropower projects are summarized in the figure 1 below.



The procurement guidelines set by the donors with specified consultant, contractors and equipment supply are the main causes for the high initial investment cost of public projects. The decision making process is highly bureaucratic and centralized in public sector that is why all issues from local people are dealt at corporate level. Lack of determination and sense of belongings are the results of frequent transfer of staff. Lack of core technical personnel is apparent everywhere in public stations. Less attention to maintenance of existing plants and annual maintenance budget based on history without any initiation in schedule maintenance have made breakdown maintenance as the rule of work. The end result is, huge investment required to bring back the plant in operation, forced outages and hence low plant utilization, low productivity and higher generation cost. The researcher finds difficulties associated with operations of intake gate, trash rack, and other civil and hydro mechanical parts are caused due to lack of attention which do not require the especial expertise in the field.

Different financing structure is practiced but a joint venture with the vendors, contractors and power purchaser is in common practice in PPP projects. A proper mix-up of national and international design and construction team either through competitive bidding or direct negotiations have helped to lower the initial project cost in the context of PPP projects. A direct negotiation with the vendors establishing long term relationship in operation and maintenance are also in practice. A partially decentralized system is there for the operation and maintenance team and most of local peoples’ demands are assessed and addressed by the station management. PPP power stations are effective in retaining staff by implementing motivation schemes and developing sense of belongings of the individual to the company. The structures are intact and schedule maintenance is the maintenance approach carried out incorporating the hydrological cycle of the plant so as to optimize the generation. Higher plant utilization and higher productivity is the end result of the structured asset management practice in the PPP hydropower stations in Nepal.
Recommendations for the Improvements

Instead of taking into account long term structured asset management, tactical asset management is a common practice and measuring the success in terms of overcoming backlogs are the main pitfalls in the asset management of public hydropower power stations. While PPP better know the investment in strategic asset management of hydropower station is financially feasible and economically viable. Following recommendations for the improvements with intended objectives in asset management practices of hydropower stations in Nepal are summarized in the Table 1.

His thesis abstract is copied and posted

Abstract

The hydropower organizations in Nepal are constantly striving to ascertain the value addition to its stakeholders. Traditional delivery system alone has not been able to fulfill and sustain hydropower development. To overcome this limitation, public private partnership (PPP) has been introduced as an innovative public policy tool for the need of dynamism in traditional delivery approach. Despite the abundant hydropower potential in the country, the electricity generation is inadequate, unreliable and expensive. A part of these consequences can be attributed to hydropower asset management. In this connection, this study attempts to investigate the existing asset management practices in public and PPP hydropower stations in Nepal.

Based on the verified investigation criteria, each of two public and PPP hydropower stations are investigated through direct interview with station managers and site observations. The results are analyzed using explanation building as the specific analytic approach in the case study. The distinct features of asset management in public and PPP practices are identified, analyzed and highlighted.

The research findings reflect that both public and PPP practices are weak in managing hydropower assets in Nepal. The cross case synthesis implies that within public and PPP power stations, there are significant differences in asset management practices. However reduced cost of financing, though initial investment is higher by 35% than in PPP, maintaining minimum balance of spare parts and lower operation and maintenance cost are identified in the public practices. While, PPP practices have revealed better structured asset management in terms of project implementation, stakeholder relationship, organizational development, maintaining asset database, monitoring asset condition and carrying preventive maintenance for high reliability which has resulted maximum plant utilization and higher productivity.

Cultural Dimensions Of Construction Engineers In Thailand Related To On-Site Management

Each individual have their own national culture which is inherent to their life when they live in their home country. Hofstede (1980) argued that people carry “mental programs” that are developed and reinforced through their experience, and these “mental programs” contain a component of national culture.

Cultural aspect in construction industry is also important. Hofstede (2005) stated that culture is more often a source of conflict than of synergy and cultural are a nuisance at best and often a disaster. People in management level know that culture has impact on their work but they do not think that culture can cause huge problems. However, many conflicts and problems are caused by national culture.

Construction industries are multidimensional and complex. It involves not only technical and financial aspect but also social aspect. All social behavior is related to culturally-based. Mishandling and mismanaging in culture different can cause risks. Construction company that would like to complete or manage construction projects must understand culture clearly (Pheng et.al, 2000). It is important for the engineer to understand about national culture that has effects on construction operation. It is necessary to understand national culture which may lead to conflict among organization and is related to project performance and achievement. The researcher tried to investigate the effect of cultural dimensions on behaviors, base on national culture dimensions, in construction organization in Thailand.

Mr. Adithep Roobleak made a study which objectives were to: (1) identify national cultural dimensions of the construction engineers; (20 investigate the practical behavior base on the cultural dimensions of the engineers at construction sites; and (3) propose appropriate recommendations to improve the behavior of construction engineers concerning effective management of construction sites.

Conclusions

The conclusions were brought out based on data analysis to corroborate the objectives of this study. The first objective was achieved by distributing questionnaire to identify culture dimension of the construction engineer. Mean calculating was used for test the culture dimension different between Thai people and the construction engineer. The second objective was done by interviewing the construction engineer and site observation. The researcher investigates behavior of the construction engineer affected by Hofstede cultural dimensions. The third objective was achieved after interview the construction engineer.

The culture dimensions on the construction engineer

Power distance overall score on the construction engineer is 2.62 (52.4 out of hundred). The score is not different from Thai national index (64.0) by statistical testing. The construction engineers tend to not accepting the feedback from their subordinate. They always give the order to their subordinates by using command and by passing the boss command is insubordination. However, the decision making for them should be done by group more than taking the boss decision. This means that the construction engineers keep distance between them and their subordinates. According to the survey, the construction engineers who have higher age tend to have more power distance also.

Uncertainty avoidance overall score on the construction engineers is 3.34 (66.8 out of hundred). The score is not different from Thai national index (65.0) by statistical testing. The construction engineers always go to observe work progress because they do not want to eliminate all the risk that may happen. They do not delegate that much work to their subordinates because they do not want to take responsibility after their subordinates fail. They using the new innovation for construction sometime only because they think that it may not work in their projects.

However, they do not give much punishment to their subordinates who fail to do the work because they want to keep their relationship. This can indicate that the construction engineers have a bit on high uncertainty avoidance.

Collectivism overall score on the construction engineers is 3.97 (79.4 out of hundred). The score is not different from Thai national index (80.0) by statistical testing. The construction engineers extremely want to work in team. They do not want to work individually and they prefer to get group training. They think that the reward should be given to everybody not to personally. They feel that group meeting is very important for them. This can point out that the construction engineers have high collectivism.

Masculinity overall score on the construction engineers is 1.54 (30.8 out of hundred). The score is not different from Thai national index (34.0) by statistical testing. The construction engineers are not emphasizing on project’s achievement rather than maintain relationship among others. It is more important for them to have better connection. They give same treatment to different gender in the project and they are not assertive leader. There are not large amounts of challenging work that they give to their subordinates. These indicators reveal the construction engineers to be more on femininity.

Long term orientation overall score on the construction engineers is 2.03 (40.6 out of hundred). The score is different from Thai national index (56.0) by statistical testing. The engineers have little commitment when they do the work and they do not want to stay with the company for long time. Actually Thai are long term oriented but most of the respondents are young so they believe that they can go for new company. The respondent company at that time was not in stable condition. This is the main reason that leads them to be short term oriented.

Recommendation to improve On-site management

For achieving the final objective of this study, the last research objective is completed by proposing the recommendation for improving on site culture management that appropriate Thai construction.

Employing the new construction is affected by high uncertainty avoidance. Working in group and taking group decision can reduce uncertainty avoidance in person. Thus, the company should set committee for taking decision about the new technique together. It is not only engineer from site operation who takes decision. High power distance also effect to using the new technique. Power distance can be reduced by having social activity between engineer and worker. Every construction site should arrange trips for everybody. This method reduces distance between engineer and worker.

Monitoring work progress is affected by high power distance. The workers do not want to tell real progress which is delay to engineers who has high distance between them. Thus, high power distance should be reduced. It can be reduced by having social activity like previous topic also. Uncertainty avoidance affects monitoring also. It has positive impact. The construction engineer has high uncertainty avoidance which makes them always check and monitor work progress.

Instructing can be affected by high power distance. Engineers who have high power distance give order by command. They do not persuade their worker. Even though some worker get use to with being told to do the work. It is still better to give orders by persuade the worker. The best way to motivate worker is giving their need according to Maslow theory. However, good relationship is also important. The construction engineers are feminism so they concern about relationship. This is positive factor for on-site construction management.

High power distance has negative impact to site safety. Thus, safety training should be done in group. The engineer and worker should be together in safety training. This makes reduction the distance between them. Collectivism is positive factor for safety because the engineer working together can identify more hazards. The worker also when working in group can communicate more about safety issues.

Feminism also takes positive impact for safety. Either engineer or worker who are feminism when face with unsafe behaviors or condition, they tend to stop working rather than continue the work. They do not concern only getting the job done. However, Feminism makes the engineers or workers do not report to safety officers about unsafe behaviors that their friend did during the work. It is because they do not want to lose relationship. It is common in Thailand for giving punishment or blame to the person who did unsafe behaviors. Thus, safety officer themselves should not look for the person who did it for giving punishment. They should find solution of it.

His thesis abstract is copied and posted.

ABSTRACT

Many studies have shown that national culture varies with different management practice, such as strategic decision making, leadership style and human resource management. The differences between management practices and national culture would affect performance at the workplace. This study tried to investigate the effect of different cultures dimensions, based on national culture dimensions, on behaviors of construction engineers in Thailand and tried to propose appropriate recommendations for effective management of construction sites.

The study used questionnaire as a research instrument. The questionnaire explores the national culture in each dimension of construction engineers. Interviewing and site observation was conducted to gain more understanding about the construction engineers. Data analysis is conducted by using explanation which all important evidences were describe and statistic methods were used to analyze data from questionnaire surveys.

The result from the study showed that every dimension of national cultures have an impact on the construction engineers. High power distance of the engineer mainly causes many negative impacts for managing construction projects. Uncertainty avoidance, Femininity and individualism also take both negative and positive impact to the projects. Long term orientations of the engineers are different from national score. The engineers are shore term oriented which cause them to have short term carrier and low commitment with company. The culture dimensions cause the engineer do things different from others who have different score in the culture dimensions. Those behaviors have an impact on site operation. Employing new technique, planning and monitoring, Instructing and site safety are affected by those behaviors. Thus, on site operation are effected by national culture. Adjusting the national culture dimension either increase or decrease lead to effective on-site management.

Relationship Marketing In Thai SME Contractors: A Case Study Of Bangkok And Khonkaen SME Contractors

Nowadays, clients are more knowledgeable, more informed, more aware of, and more expecting about anything that is surrounding the construction environment. Clients have more choices because of more contractors are competing in the market as oppose to less clients’ investment in the projects. The client wants the best possible value from contractors to satisfactorily accomplish their project. The satisfaction that a client was provided by a contractor in terms of construction product and construction services was directly influencing the client’s willingness to select that contractor in forthcoming projects.

In Thailand, after the crisis, contractors also faced this situation similar to other countries. There are more players in the market compared with the decreasing of construction’s investment volume. Contractors must form themselves to outstanding among their competitors to maintain and gain their clients and market share. Moreover, the construction industry will be a key engine of economic stimulus as the Thai Government aims to use construction of large scale infrastructure projects to stir investment and create jobs, thus stimulating the economy in the short-term. These will be an optimal opportunity for contractors to catch up the clients as much as possible. Relationship marketing therefore became a tool for attracting clients who desired personalized service. Thus, using marketing as a source to identify clients’ need is becoming an important process and priority for success in Thai construction industry.

As describe previously, contractors have to be effectively evolved to handle a dynamic condition in this present market environment. Rather than aligning the organizations through the long-terms direction, contractors must aware of sensitive changes that will generate affects among their stakeholder; especially to clients whom control the volume of investments. Therefore, relationship marketing tends to be an organization’s capability to complete a missing puzzle that a few organizations point out as an important factor.

Mr. Amnarch Pirmsinthavee made a study which objectives were to investigate and identify relationship marketing activities of contractors that occur in Thai construction industry. The detailed objectives were to: (1) investigate the relationship marketing activities of SME contractors in Thai construction industry; (2) explore a perception and understanding of contractor’s relationship marketing and the significant key marketing activities those are driven by Thai SME contractors, Bangkok and Khonkaen organizations; and (3) propose a recommendation that guides the contractors to effectively implement marketing activities for competitiveness of the organization.

Results

In order to achieve the objectives of study, the analysis framework consists of 4 processes. In the first process, the researcher identifies the definition of factors influencing the Relationship Marketing (RM) that contribute to SME contractors in Thailand by reviewing the literature and interviewing the representative of construction companies. The researcher acquires 25 activities that influence the relationship marketing in Thai SME contractors from literature review and interviewing the representative of the organizations.

The first objective was achieved by implementing two statistical methods, Descriptive Analysis and Mann-Whitney U Test. The descriptive analysis is to classify the importance level of marketing activities into a mean and ranking. The hypothesis testing (Mann-Whitney U Test) is to test the perception difference between SME contractors located in Bangkok (BKK) and SME contractors located in Khonkaen (KK) by proving the hypothesis as following:

H0: There is no difference between the perception of SME contractors located in Bangkok and perception of SME contractors located in Khonkaen on marketing activities influencing the relationship marketing.

H1: There is a difference between the perception of SME contractors located in Bangkok and perception of SME contractors located in Khonkaen on marketing activities influencing the relationship marketing.

The descriptive analysis is shown in below, the marketing activities (the first top 10th) influencing the relationship marketing that affects the SME contractors located in Thailand are Adjusting the difficulty in working period, Network, Weekly meeting within the organization, Organization’s evaluating, Improving through the result of evaluating, Relationship with consultant, Commitment in working performance, Relationship with client after bidding period, Relationship with a client’s employee, Low price bidding, Relationship with competitors, and Hiring new employees.

Table: Analysis of Marketing Activities Influencing Relationship Marketing that affects SME contractors located in Thailand



All these top 10th activities are classified as a high importance level for influencing the relationship marketing. There are 5 activities from Performance Satisfaction, 4 activities from Cooperation and each 1 activity from Commitment, Trust and Mutual Goals. The groups of each category are shown below:
- Performance Satisfaction
- Commitment in working performance
- Low price bidding
- Organization’s evaluating
- Improving through the result of evaluating
- Hiring new employees

Cooperation
- Relationship with consultant
- Adjusting the difficulty in working period
- Weekly meeting within the organization
- Relationship with a client’s employee

Commitment
- Relationship with client after bidding period

Trust
- Network

Mutual goals (relational partnering)

- Relationship with competitors

To achieve the second and the third objective of this study, the researcher has to clarify the perception difference between SME contractors located in Bangkok (BKK) and SME contractors located in Khonkaen (KK) of Thailand. After that, the researcher attempt to propose the recommendations and strategic guideline that appropriate for SME contractors on each key activity that influencing the relationship marketing. Then, the result was explained and summarized in each category.

Recommendations for Improvement

In order to achieve the last objective of this study, the researcher proposes that Thai SME organizations should more concern on the relationship marketing activities regarding to the result. Because they could perform the organizations the competitive advantage beyond others. The major consequences of implementing the marketing activities are increasing the opportunities in repetitative purchasing the service and entrancing of new clients, and also gaining the client’s loyalty. According to the economic crisis during this day, the researcher believes that these activities could help the organization in increasing the volume of dealt projects. Anyway, the recommendations and benefits of the first top 10th activities are presented in table below.



His thesis abstract is copied and posted.

Abstract

Nowadays, a contractor has to survive in the severely competitive construction industry in Thailand. Unfortunately, many Thai SME contractors were bankrupted during an economic crisis. Survived contractors have to remain themselves by implementing many strategies. Marketing strategy is also being a competitive strategy that many SME contractors are neglected. Therefore, this study aims to investigate key activities that influencing the relationship marketing in Thai SME contractor and propose the recommendation that effectively implement to be a competitive advantage in the SME construction industry.

The researcher considered to use a quantitative research by implementing survey design. There are 2 statistical methodologies were implemented to analyze the data from questionnaire surveys: Descriptive Analysis and Mann-Whitney U Test. The descriptive analysis is to classify the importance level of marketing activities into a mean and ranking. The hypothesis testing (Mann-Whitney U Test) is to test the perception difference between SME contractors located in Bangkok (BKK) and SME contractors located in Khonkaen (KK).

The result were found that there are 10 key activities that influencing the relationship marketing as the high influence including of: Adjusting the difficulty in working period, Network, Weekly meeting within the organization, Organization’s evaluating, Improving through the result of evaluating, Relationship with consultant, Commitment in working performance, Relationship with client after bidding period, Relationship with a client’s employee, Low price bidding, Relationship with competitors, and Hiring new employees. The benefits and recommendations for improving the relationship marketing strategy of the first top 10th keys activities were discussed in this study.

Application Of Project Management Functions In Small Construction Companies: Case Study Of Small Contractors In Hochiminh City

The organization of Small and Medium Enterprises in construction in Viet Nam is very simple, with a maximum of 10 office personnel including administrator, engineer, accountant or human resources. Some functions have no people to do it while some people have to do many jobs at the same time. The fact is that, SME could not hire good employees with low salary.

The boss of SME usually is engineer or foreman, they are very good in their job but they didn’t have enough knowledge about business. They do the project base on their experience and learn from their fault. They have no project management process or the process is not useful. After one project, there are no people collecting data for the improvement of the next project. Some of management concepts like quality concept are not documented and analyzed.

The small construction companies have limited resources, such as capital, labor, technical, experiences, etc, so they cannot run many projects at the same time or they cannot get big project.

Le Hoai Viet made a study which objectives were to: (1) develop the checklist to identify the project management in practice of small construction enterprise; (2) use the checklist to investigate the selected companies in order to analyze the strengths and the weaknesses of the management in practice; and (3) propose recommendation for project management improvement.

Conclusions:

The tables 1-3 below indicate the strengths and weaknesses of the three companies in project management.





Recommendation

Study suggests measures to improve the management process of the case study companies. Note that the proposal cannot be applied to other companies.

Proposed organizational structure: All three companies should apply matrix organizational chart as shown in Figure below.



Proposed costs management using WBS to divide and control costs. The company should focus to investment objectives to reduce indirect costs.

Proposed time management: using Gantt charts. The company should determine the cause of delay to take measures to resolve and avoid repeating mistakes. Doing closeout process when project finish that is the basis for the next projects.

Proposed quality management: to understand the definition of quality. Identify management is the key of quality control. Complete process of quality management and a commitment to comprehensive quality. Training for employees is the encourage solution.

Procurement management: improve management of procurement processes, which emphasizes factors response time, quality and price. Company should use retail stores and philosophy “just in time”.

In general, the management of construction projects not being narrow in scope of this study. Management of construction projects has many functions and to perform regularly throughout the life cycle of the project. A matrix project management proposes in the following detailed description below. Major difficulty is the small construction companies have too little labor, so one must do many things at once. This study gives a general picture of project management, it is as a target for the boss strives to achieve.



His thesis abstract is copied and posted.

ABSTRACT

Subject of this study is to apply project management process to small and medium construction business. These enterprises are construction contractors established in about 5 to 7 years. They all stay in Ho Chi Minh City. The bosses are those who have long experience in the construction industry. Important part of this study is to develop a checklist to identify the process of project management of small businesses in practice. Research method is to use a checklist to interview business owners directly. The results obtained in the interview can indicate the strengths and weaknesses in project management of the business. The main function is interested in schedule management, cost management, quality management and procurement management. Process of project management of enterprises have more advantages can be developed for the better. Process can apply to other companies or vice versa. For the project management process is not effective, the study recommended improvements and changes and can be replaced with a more complete process.

Customer-Driven Strategy and KPIs Using CRM Approach: A Case Study of Construction Enterprises in Vietnam

Marketing in general and Customer Relationship Management (CRM) have been developed for centuries. In most industries, marketing has been an important part of business. It spent a large part of the enterprises’ budget. It decides the design, function, and cost of the product, turnover, and profit of the enterprises.

In construction, due to its characteristics, the application of CRM needs the special adjustment and development.

Vietnam construction enterprises seem to be far behind other industries in application of marketing strategy, customer study and enterprises business strategy adaptation. Due to the limited number and the importance of customer, the CRM should be highly developed in construction. But a clear strategy is rarely defined and developed.

In fact, every bank, insurers, software manufacturer or electronics retailer develop the CRM in their business. But none of construction companies in Vietnam have developed up to now. They have no CRM strategy, no data warehouse, and no CRM assessment.

Construction industry should be the one that apply CRM the most. The value of a project is always very big; the number of projects and customer is very limited in comparison to any other industry. And because of the uniqueness and rarity, any customer is different from any other. They require special, customized care and service. So, throughout understanding each customer is critical to construction project marketing.

Besides, CRM in construction is different from CRM in other industries due to the characteristic of construction industry.

The most important and different characteristic of construction industry from other industries is project-based production. Any projects are unique. Construction projects are always executed on site which much influenced by many factors such as weather, technologies, culture, social, politic, etc conditions, much more than any kind of production in the factory. Projects are always constrained by resources available, time for completion and quality required by Client.

The characteristic of customers is also much different. The number of customer is very limited. And the demand of the customer is much different from consumer product customers. Those characteristics make the marketing in construction different from other industries, especially CRM.

Those conditions make the construction industry marketing different from others. So it requires changes and adaptation in application of marketing strategy and technique.

Mr. Tran Dang Manh made a study which took a deeper look into the CRM marketing technique and application in construction industry. He tried to answer the following questions:
 What is Customer relationship management?
 What is the characteristic of project-based construction industry?
 How to adapt and apply CRM in construction industry, especially in Vietnam?
 Based on real case of a construction enterprise in Vietnam, explore the actual conditions and level of CRM application. Identify any vacancy and adjustment applicable in CRM development to propose.

Conclusions:

CRM is new to Vietnam construction enterprises. But CRM is a must for the enterprises development.

CRM helps enterprises understanding its customer and its own performance, classifying its customers, satisfying its targeted customer, and creating values to its share holders by creating values to both its targeted customer and its own.

CRM requires the commitment of the whole organization- from top leaders to every employee, and all of its related supplier chain. Only with the commitment of the whole production chain, the final product and customer service shall be achieved.

CRM requires the construction of information system capable of gathering customer information from any sources, media, and channel, analyze to give instructions to the production and management system, and store all information.

CRM requires its KPIs definition and application to give feedback to CRM system, continually improve itself and the whole organization.

Besides common strategy for general business, project-based industry has special characteristics: Uniqueness, non-standard working conditions, limited number of customers. It makes the CRM in project-based industry different from others.

In construction, the values that are critical to both customer and enterprises are time, cost, quality, and safety. To be competitive, each enterprise needs a unique strategy to ensure the value to themselves and customer. For all of that, CRM shall be able to find all necessary information, analyze, and evaluate the performance.

Vietnam construction enterprises are applying CRM in a very preliminary level. They do not have strategic approach to develop. Their management system also does not incorporate CRM. They need to change from its business ideology, its organization and business culture, its management system, and its employees’ behavior.

The primary values in construction- time, cost, quality, and safety- are still far from requirement in Vietnam. The CRM also has not been written and developed as an official strategy for the enterprises.

Vietnam construction enterprises need to assess its own performance to decide its targeted customer segments, apply appropriate customer policy, media, and channel, information system to manage CRM system. The assessment shall be based on clear and quantifiable KPIs set at the start of the development of CRM system. The KPIs to be used should be at least three categories:
 Enterprises general performance: profitability, operational criteria such as rate of inventory, liquidity ratio.
 Project performance: time, cost, quality, safety, and number of customer claims
 CRM performance: rate of customer retention, rate of referral.

CRM is a cross-functional activity. In order to develop CRM, enterprises need to change business ideology, organization and business culture, management system, and employees’ behavior. The improvement of CRM is part of an overall corporate restructuring

Only with the customized application of CRM, enterprises may understand their customer more, continually improvement of performance, and ensure its future development.

His thesis abstract is copied and posted.
ABSTRACT

Customer relationship management (CRM) has been developed for centuries. It decides the design, function, and cost of the product, turnover, and profit of the enterprises.

CRM is a cross-functional activity. In order to develop CRM, enterprises need to change business ideology, organization and business culture, management system, and employees’ behavior. The improvement of CRM is part of an overall corporate restructuring.

But it seems not to be in Vietnam construction enterprises. Construction industry should be the one that apply CRM the most. Throughout understanding each customer is critical to construction project marketing.

By this study, I would like to study Customer-driven strategy and KPIs using CRM approach- a case study of construction enterprises in Vietnam so that I can propose a framework for the application and development of CRM in Vietnam construction enterprises.

Integration of Gas Gathering System in Oil Field Development Project - A Solution For Oil Field Early Development

In recent decades, petroleum operations have been continuously developed in Vietnam continental and offshore with the exploration, exploitation and discovery of several crude oil and natural gas fields with commercial reserve in Cuu Long, Nam Con Son and Malay - Tho Chu basins. Petroleum operations demand advanced scientific technology and huge investment capital. This operation may bring high profits, but involves huge risks and in some cases, leads to loses. Because of the high commercial value and profits from crude oil, contractors still accept risks when entering this operation. In some cases, contractors face risk of loses due to misestimating of field development economic efficiency model, high investment costs but the economic efficiency rate is lower than expected. Thus, the commencement of the operation may be prolonged by contractors. One of the solutions to solve this problem is to reduce the investment costs as much as possible by applying old technology and reduce equipment costs.

Environmental issue in oil and gas exploration and production operations in recent years also became a big problem. Regulations for environment protection, usage of natural resources have been closely amended. Vietnam Parliamentary ratified a Law on Petroleum, a provision which prohibited gas flaring. This result in the increase of investment and it may become an obstacle in the contractors’ field development execution.

Environment protection is not only contractors’ responsibility but also Vietnamese government’s state owned enterprise, PetroVietnam. Furthermore, PetroVietnam should find the right way to speed up the execution of the field development.

The right way to settle the prolongation of field development in such case is the participation of owner’s enterprise in the construction of the gas gathering pipeline system by method of cost sharing, integrating the gas gathering pipeline system project with the oil field development project.

Mr. Pham Minh Nga made a case study on the gas gathering system for block 16-1 Te Giac Trang & block 15-2/1 Hai Su Trang – Hai Su Den field development which objectives focused on these subjects: (1) description of Oil Field Development process and its issues; (2) integration necessity of gas gathering system in oil field development project; and (3) solution chosen to execute the integration.

Conclusion

The petroleum operation is very complex and requires advanced scientific technology marvels with high investment costs, especially the offshore oil exploration and production activities. This operation brings huge economic profit from the high oil commercial value to the operator. However, the economic efficiency of this activities depend much on the field development planning relating to the execution of interactive activities in all stages, from exploration, drilling and production operations, reservoir engineering and well logging, and enhanced oil recovery. An Oil Field Development Plan should be formed and appraised based on these objectives: acceptable technical technology, economic efficiency, appliance to international practices in enhanced oil recovery optimism, conformity with Regulations of Law on environmental protection, and preservation of natural petroleum resources.

Nowadays, Regulations of Laws on petroleum operation have been amended and supplemented to conform to the realistic requirements for environment, resources preservation, technology application, enhanced oil recovery optimism, those which, both the owners’ body and contractors must be followed. Besides, the owners should have responsibility to instruct contractors in the execution and find method to resolve problems with the purpose of encouraging contractor in promoting the oil field development. The participation of the enterprise owners in coordination with contractors in the execution of FDP is an important factor to contribute to the success of the FDP.

With the example of this case study: Integrating Gas Gathering Facility Project in Oil Field Development Project, it has been realized that this is a reasonable solution for speeding up the Offshore Oil Field Development which is similar to HST-HSD and TGS Oil Field Development Projects in Bach Ho Basin.

It is of a realistic proof that the alternative is the best solution for Projects in the area which have like circumstances and condition, but it may be defect and in-economic if it is applied in various projects without careful consideration. Therefore, finding out an acceptable solution for resolving any issue or problem, it should be decided based on the reality and overall analysis and evaluation.

His thesis abstract is copied and posted.

Abstract

In many decades, crud oil and natural gas have become essential energy resources in the industrial development of all countries in the world. It has been enormously forcing the development of petroleum operations. The life cycle of petroleum operations includes exploration and development, production, refining, marketing, transportation distribution to the end-user, and final utilization. New scientific technologies have been increasingly applied in all life cycle of petroleum operations.

Even though petroleum operations have been based on solid scientific excellence and engineering marvels, only recently has it been discovered that many of the practices are not environmentally sustainable. Practically all life-cycle activities of hydrocarbon operations are accompanied by undesirable discharges of liquid, solid, and gaseous wastes, CO2 emission by gas flaring which have an enormous impact on the environment. For example, during drilling, water-based drilling muds and cuttings are discharged overboard, whereas during production, the major discharge is produced water. The ecological impacts of these discharges, including habitat destruction and fragmentation in both terrestrial and aquatic environments, are now recognized as major concerns associated with petroleum and natural gas developments. Consequently, reducing environmental impact is the most pressing issue today and many environmentalist groups are calling for curtailing petroleum operations altogether. By developing new technologies that guarantee sustainability in hydrocarbon operations, these problems have been solved in environmentally acceptable, economically profitable, and socially responsible manner.

Besides, petroleum operations must be commenced in conformity with the Law and Regulations relating to the economical usage of all natural resources. Thus, either enterprises or contractors involved in petroleum operations have great responsibility for the planning, appraisal, approval or commencement of oil field development project in compliance with the regulations of environment, technology, preservation and economical use of petroleum.

With this study, an acceptable solution for the integrating the Gas Gathering Pipeline System with Block 16-1 Te Giac Trang and Block 15–2/1 Hai Su Trang - Hai Su Den Offshore Vietnam Field Development Project have been chosen to undertake with the purpose of encouraging the early development of such offshore Oil Fields and commencing the economical use of associated gases.

Delay Causes In Sub-Projects Of The Ho Chi Minh National Highway Construction Project

In recently years, Vietnam has been remarkably successful in expanding infrastructure construction project. After the planned economy was changed to the market economy, Vietnam economic development has increased considerably. Transport infrastructure reform and improvement is the most priority of Vietnamese government because this is basic to improve the economic development. During the execution of Highway construction project, the construction time, cost and quality of a project were commonly considered as key factors of project success. The project time can be evaluated as the very important factor in the project management work because it affects directly on the profit and investment effect of project. The project investment effect will be reduced significantly if project time delay happens.

The procedures of the project management in general and the time management in particular in Highway construction project has been improved to apply in Viet Nam for recent years as at that point Vietnam carried out the open-door policy to attract FDI (Foreign direct investment) projects. 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 Poor planning and controlling; poor Finance Competence of the contractors; unfair contract conditions included unfair and non strictness treatment of contract delay; poor competence of supervision consultant; deficient transmission among other parties, weather condition, resettlement policy or other factors. It is found out that more than 70% of the Ho Chi Minh highway construction sub-projects have the problems with project time delays.

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. Nguyen Dinh Duong made a case study which main objectives were to: (1) identify the delay causes in the Ho Chi Minh highway construction sub-projects which were completed up to now or under construction; and (2) develop a framework to control and prevent delays in the remaining or under construction sub-projects of the Ho Chi Minh highway construction project.

Conclusion

Time delays in construction projects are a global phenomenon. The time delays have being commonly occurred in most of construction projects and the highway construction projects are not exception.

A case study (the studying sub-project) has been conducted to investigate the delaying factors, causes and solutions for controlling and preventing the delay of the Ho Chi Minh highway construction sub-project. The analyzing results of this study pointed out that there are nine delaying factors and numerous delaying causes in the studying sub-project.

A framework with solutions is proposed for controlling and preventing the delay of the studying sub-project. The result implemented on the studying sub-project proved that the solutions proposed for controlling and preventing the time delay during the construction are implemented successfully. Effect of applying the solutions to control and prevent delays during the construction of the studying sub-project resulting in the rate of the work progress of the studying sub-project has been improved quickly and at the end, completion period of the studying sub-project has been maintained between 15 months as the original plan.

Effect of controlling and preventing the project delay will come more effectively if solutions proposed are applied since the project preparation, detail design and contractor selection phases etc.

Framework for controlling and preventing the delay causes in the remaining HCM NH construction sub-projects is shown in the figures below.





His thesis abstract is copied and posted.

ABSTRACT

In general, project completed with destined time, cost, and quality is the basic target of construction project management. The Ho Chi Minh National highway (HCM NH) construction project is a great and very important highway construction project in Viet Nam. HCM NH project is around 2667 kilometers long, does not include the West branch with the length of 500 kilometers from Khe Gat – Quang Binh province to Thach My – Quang Nam province. Cost estimated of the first phase is around 2.3 billions USD by Vietnamese Government for the two carriageway lanes standard. The first phase was started in 2000 and planned to complete in 2010. After that, from 2010 to 2020, the HCM NH will be improved step by step to standard of the high-speedway with the cost estimated of this phase is about 15 billions USD. For the purpose of performance arrangement, this project is divided into the HCM NH construction sub-projects. Regrettably, up to now, most the HCM NH construction sub-projects cannot be finished within intended time, budget and resources.

Normally, time delay always happened in Ho Chi Minh NH construction sub-projects. This report summarized the delay causes factors involved in the Ho Chi Minh NH construction sub-projects. This report will be conducted by using qualitative early researches. Through a case study on the road construction sub-project connecting the HCM NH to the Lan Ong commemorative area, 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 the studying sub-project. From the case study, effective solutions for controlling the delays will be investigated. Finally, a framework for controlling and preventing delays in Ho Chi Minh NH construction sub-projects in the future is proposed.