EFFECTIVE PLANNING & CONTROL OF MULTIPLE PROJECTS

A CASE STUDY OF GR60 - NOKIA STORES CHAIN IN VIETNAM

By

Nguyen Thai Son

Abstract

             

The report expresses the key issues in Effective Planning & Control of Multiple Projects that known as the popular trends for many projects of those companies who want to develop marketing strategy in Vietnam.

This study, which refers to the theories and the standards system, has expressed the concept of Project Planning and Controlling. The study has briefed the factors that most effect to multiple projects planning and controlling studied from case study reports and the key points to control multiple projects effectively from the design to construction stage. The report has introduced a Planning and controlling process for the purpose of amendment to the existing Multiple projects Planning and Controlling in order to obtain a complete process for better managing multiple projects.

The next part of this report is the case study on the NOKIA GR60 Project that have been implementing by DHC contractor in Vietnam in 2011. Through this case study, the findings on the existing Project Planning and Controlling and the application from the previous part to this existing Project Planning and Controlling for improvement will be the foundation for next coming multiple projects. This is also the objective of this study.

Executive summary

Rationale of research

This research has been conducted to identify multiple project management strategies.

Objectives of study

To investigate multiple project management in terms of planning, organizing, communicating and controlling. And propose strategies to manage multiple projects.

Methodology  

The exploratory research method is used to review the literature and case of GR60 project and applying those theories to the existing project planning and controlling, in order to amend and improve it.

Findings and conclusion

Project goals were set very clear to project employees at all levels. Project scope of work was well defined but not detailed enough, Project manager used Work Breakdown Structure to develop the level of work as well as work relationship. Company organization is defined as a matrix organization structure, so the GR60 project is applied project financing to implement from beginning to ending. It is very easy to control the financing statement of the project.

After a month, Project manager use Object Charts and cost variance to review the schedule, cost of the projects that finished in a month. Then he created an evaluation to see if the project schedule is delayed or cost overrun. He also investigated the problems and proposed solutions to avoid problems that effect on schedule happen again.

For external communication, there were many communication problems happened during projects implementation process such as delay in transfer information, delay in change order approval, contractor could not work directly with Distributors as well as store owners. These problems affected too much on projects schedule. Board of directors and Project manager found some solutions to solve the problem effectively such as organize meeting more often, issue new communication procedure to be suitable with the project style.

Recommendation

·          Multiple projects plan must be defined before starting projects. In terms of scheduling, evaluating, coordinating and controlling.

·         The multiple projects plan must be developed with input from people who will be performing the work, and must be communicated to all participants. The tasks, costs, and schedules of the multiple projects plan establish the benchmarks and check points that are necessary for comparing actual accomplishments to planned accomplishment, so the progress of the multiple projects can be measured, evaluated, and controlled.

·         Identification of Project Goals which are specific, measurable and realistic. There must be agreement about Projects goals.  Multiple projects need time frames for the goals.

·         Identification of suitable organization structure to apply to multiple projects. Matrix structure and Functional structure are recommended to control multiple projects

·         Construction companies should select a simple scheduling technique to plan multiples projects schedule because multiples projects including many small projects that have limited task and short interval time.

·          Internal and external communication procedure also must be considered by construction companies during multiple project planning process. Clear and well-identified communication procedure throughout communication channels will contribute a lot to the successful of multiple projects management.

·         To be effective, construction companies should develop a multiple projects control system which must be simple to administer and easily understood by all participants in a project.

·         Line of Balance (L.O.B), a precursor of the network analysis technique, which relates program to forecast targets to determine how well a project is processing, is recommended to maintain control over multiple projects implementation period.

·         Construction companies should use Objective Chart to review and evaluate work schedule of multiple projects

·         Construction companies also can use Cost variance to review and evaluate the costs of multiple project

THƯ MỜI THAM DỰ

HỘI THẢO

PHỐI HỢP GIỮA AN TOÀN LAO ĐỘNG TRONG XÂY DỰNG VỚI NĂNG SUẤT LAO ĐỘNG VÀ CHIẾN LƯỢC KINH DOANH CỦA DOANH NGHIệP
&
ĐÀO TẠO CAO HỌC AIT VỀ QUẢN LÝ DỰ ÁN XÂY DỰNG - KỸ THUẬT XÂY DỰNG VÀ QUẢN LÝ CƠ SỞ HẠ TẦNG


Viện Công nghệ Châu Á tại Việt Nam (AITVN) xin gửi lời chào trân trọng.

Đa số các nhà quản lý dự án và điều phối các dự án phát triển cơ sở hạ tầng của Việt Nam đều có cơ sở tốt về kỹ thuật như kỹ thuật xây dựng, cơ khí, điện, v.v… Để có thể là nhà quản lý chuyên nghiệp điều hành và tham gia các dự án lớn họ cần được trang bị đầy đủ kiến thức và các kỹ năng cần thiết cho quản lý dự án như quản lý về quy mô, hợp đồng, rủi ro, tài chính và thời gian hoàn thành dự án,... Do đó, nâng cao năng lực về quản lý dự án xây dựng là một trong nhiệm vụ trọng tâm phát triển nhân lực quản lý cao cấp của các tập đoàn xây dựng lớn, các công ty đầu tư xây dựng cũng như các nhà thầu.

Để đáp ứng nhu cầu ngày càng cao đội ngũ cán bộ chất lượng cao về lĩnh vực kỹ thuật và quản lý xây dựng dân dụng của Việt Nam, Viện Công nghệ Châu Á đã triển khai rất thành công các Chương trình đào tạo chuyên gia về Quản lý dự án xây dựng, chuyên gia kỹ thuật xây dựng về quản lý cơ sở hạ tầng từ 2007 đến nay tại Hà Nội, Thành phố Hồ Chí Minh, Vũng Tàu, Cần Thơ,…Trong khuôn khổ Chương trình, AITVN xin trân trọng kính mời Quý vị đại diện tham dự Hội thảo

“Phối hợp giữa an toàn lao động trong xây dựng với năng suất lao động và chiến lược kinh doanh của doanh nghiệp - Integrating construction safety with productivity and corporate business strategy”

được tổ chức lúc
09h00, Chủ nhật ngày 18 tháng 03 năm 2012 tại AITVN, số 45 Đinh Tiên Hoàng, P. Bến Nghé ,Q.1 (đối diện đài Truyền hình HTV), Phòng A1.1.

09h00, Chủ nhật ngày 24 tháng 03 năm 2012 tại AITVN, toà nhà B3, ĐH Giao Thông Vận Tải, P. Láng Thượng , Đống Đa, Hà Nội

AITVN xin mời Quý cơ quan, đại diện phụ trách Nhân sự, cán bộ và đào tạo, các chuyên viên kỹ thuật, các nhà quản lý các dự án đầu tư/xây dựng lớn, các cá nhân quan tâm đến Hội thảo và các chương trình đào tạo của AIT tới tham gia Hội thảo.

(gửi kèm chương trình Hội thảo)

Xin liên hệ địa chỉ sau để đăng ký tham gia:
Chị Lê Tường, Điện thoại: 08-910 7423/7472/7473/số nội bộ 117; 01 285 265 168
Eemail: ngletuong@aitcv.ac.vn

Trân trọng,


Nguyễn Thị Bích Hòa
Quản lý các chương trình SET - AIT tại Việt nam
Viện Công Nghệ Châu Á tại Việt Nam
---------------------------------------------------------------------------
Nội dung chương trình

 8:45 – 9:00 Đăng ký tham dự

 9:00 – 9:15 Khai mạc

Giới thiệu về AIT-AITVN
 9:15 – 10:00 Phối hợp giữa an toàn lao động trong xây dựng với năng suất lao động và chiến lược kinh doanh của doanh nghiệp - Integrating construction safety with productivity and corporate business strategy

 10:00 – 10:15 Giới thiệu về Chương trình Thạc sĩ Chuyên nghiệp của AIT trong Quản lý Dự án xây dựng
• Giới thiệu Chương trình đào tạo – các đặc điểm chính
• Giới thiệu về yêu cầu tuyển sinh
• Học phí và các chi phí liên quan
 10:15 - 10:45 Hỏi – đáp


Trình bày: Tiến sĩ Hadikusumo
Trưởng khoa, Khoa Quản lý Xây dựng, Kỹ thuật và Cơ sở Hạ tầng,
Trường Kỹ thuật và Công nghệ - Viện Công nghệ Châu Á (AIT)

OWNER’S EPC PROJECT MANAGEMENT IN POWER PLANT PROJECT A CASE STUDY OF NHON TRACH 2 POWER PLANT PROJECT (750 MW)

By

Nguyen Nhat Tai

Abstract

             

In recent years, construction industry in Vietnam has been developed dramatically, contributing to national development. Besides civil construction, infrastructure, residential development, there are a large number of Power plant projects are and will be implemented in the next 20 years.

Similar to other types of construction project, power plant project must also deal with risk of quality, time, cost on construction stage. As a large scale project with thousands of activities, power plant project requires a very carefully planning, scheduling and monitoring to avoid these risks.

There is a fact that in reality, implementation of power projects usually goes behind the schedule, causing a huge loss to social economy and obstructs the development of local construction market.

The purpose of this report, by studying a real case in Nhon Trach 2 Power Plant Project, is to analyze EPC management strategies in such power plant projects; from that, to suggest a framework of EPC management strategy for Power Plant Projects in future.

Executive summary

Rationale of research

This research has been conducted to identify project management strategies in EPC contract (Power plant projects).

Objectives of study

To study and propose strategies for EPC power plant project in construction stage for thermal power plant project and develop project management frame work for owner.

Methodology  

The exploratory research method is used to review the literature and journals and understanding phases of power plant projects

Findings and conclusion

Demand of electricity in Vietnam within next 10 years will increase highly, the current Power Plant Projects in Vietnam are meet problems in terms of schedule, cost, quality, and those are results of poor project management in Power Plant Project. The research study summarized and proposed a strategy to manage EPC Power Plant Project in EPC stage by the following activities:

·         Management of Engineering;

·         Management of Procurement;

·         Management of Construction.

The research study showed an overview of a thermal power plant project in terms of characteristics, technology, facilities, contract, process and risks.

Through collecting related documents as well information from interview from experts as well as people participated in Nhon Trach 2 Power Plant Project, problems and risks were anticipated, controlled closely during process of Project.

The problems and risks in terms of quality, schedule and cost did not occurred during process of Project through making a copy of Ca Mau 1 and Ca Mau 2 Projects. However, there was a waste of money in construction by making a copy of Ca Mau 1 and Ca Mau 2 Projects in terms of soil improvement and foundation. Concurrently, according to guideline of Petro Vietnam about proving internal force as well as utilizing manpower of subsidiary, therefore, some unqualified and inexperienced subcontractors were allowed to participate in Project.

Recommendation

·         Optimizing design in Feasibility Study by arranging layout most properly and selecting the most proper technical solution: this stage is one of the most important stages, technology and conceptual design were selected from this stage, then after that, to determine total cost investment as well as EPC Contract price properly;

·         In bidding stage, review/update latest technical specifications and put strict requirement for subcontractors into Bidding document: because Power Plant Project is a complexity project in terms of civil, mechanical and electrical. Therefore, subcontractors assigned to conduct separated packages in scope of EPC package have to have capability as well as experience about construction in Power Plant Project;

·         In engineering stage, conducting value engineering in foundation solution: because the price of EPC Contract is lump sum, therefore, EPC Contractor always wants to conduct engineering according to their standard designs and procedures. However, implementation of value engineering not only avoid waste of money but also reduce schedule of construction;

·         In procurement stage, increasing Owner’s/PMC’s involvement in controlling QA/QC works of procurement: under EPC Contract, volume of electrical and mechanical works makes up more than 60% volume of EPC works, in order to risks in procurement resulting in claim, cost variation, Owner/PMC should participate in inspection of fabrication and manufacture of equipments in foreign.

·         In construction stage, coordinating with EPC Contractor to increase inspection of works conducted by subcontractors and site preparation : suggest EPC Contractor to replace unqualified and non-experience subcontractors if works are delayed and construct temporary drainage system before starting up;

·         In commissioning stage, considering standby alternatives before commissioning: commissioning is one of the most important stage of Power Plant Project, if failure, it will result in delay in completion and handover in order to put into operation.  

OWNERS’ PROJECT QUALITY MANAGEMENT SYSTEM

A CASE STUDY OF IMPERIA AN PHU PROJECT

 IN HO CHI MINH CITY, VIETNAM

By

Nguyen Ngoc Thi

Abstract

             

Construction industry is strongly developed today. Hence, project quality is the main requirement that the Owner has to engage to their customers and the government. Therefore, Owner should take part and closely manage from the beginning stage of the project to ensure project’s quality requirements.

In the past, project quality mostly depends on the Contractors and Supervisors, the main reason is that the Owner did not understand project management and their limitation of professional, staffs. Recently, this is changed. Owner has their own experts and staffs and establishes quality management system to manage the construction activities.

In this study, an Owner’s Quality Management System is introduced. This helps the Owner to establish the Quality Management System, procedures and difficulties facing during the implementation. Moreover, this study also explains the benefits of Total Quality Management in construction, difficult factors need to be solved and framework to apply TQM in construction project

Executive summary

Rationale of research

This research has been conducted to identify quality issues in building construction projects of Vietnam.

Objectives of study

To study owner quality management practices and practices in Imperia an Phu project and discuss the strengths, weakness and provide recommendation.

Develop quality management framework for high rise building construction.

Methodology  

The exploratory research method is used to review the literature owner’s quality management QA/QC process, total quality management.

Investigate data for quality performance of Imperia an Phu project and quality management system of owner.

Findings and conclusion

The Owner‘s Quality Management System should be established and committed by Top Management. The Project Manager organizes the project team which structures with clear responsibilities of members. Construction procurement must be developed in order to choose good contractors or suppliers. The project team must ensure that the implementation must be process in accordance with their programs and plans which are submitted by contractors and approved by Project Management Team. The Quality Management System should review and improve the effective of the system regularly and Total Quality Management is the highest mission that the System should adopt.

In case study, a high-rise building project was chosen, because high-rise buildings are become popular, nowadays. Author has analyzed the Quality Management System of project Owner at the construction stage and show out the strengths and weaknesses of the system. Moreover, from this case study, author has discussed the effort of the existing system to improve quality at project and the efficient of these improvement methods. In order to reduce the quality problems, the project management team decided to increase the efficiency of QA/QC programs, increase the efficiency of supervision work, improve working conditions for workers and record all Non conformance products. Because of some reasons, the improvement activities were not efficient enough. As a result the frequency of quality problems are not completely reduced.

Author has also proposed solutions to improve the efficient of Quality Management System and frameworks which help Owner to solve problems and manage the project in the construction phase. This Quality Management System proposed framework is not only applied in this case study but also is a useful framework for other project owners.

Recommendation

·         The responsibilities of each member should be clearly defined.

·         Company quality manual must be established and committed by Top Management.

·         The Quality Management System should develop and improve the construction procurement which can help them to get the good subcontractors and suppliers.

·         Let the constructors understand that perform the works in accordance with programs, plans is a must.

·         Project communication, information system should be maintained and improved.

·         Keep construction site safely and clean, subcontractors participation are the main keys to achieve Total quality management.

OWNER’S TENDERING STRATEGY TO OBTAIN A QUALIFIED CONTRACTOR

By

Nguyen Duc Huan

 Abstract

             

In this report, I am going to present the tendering processes around the world which I have been learning in the Master class of Project Management at the Asian Institute Technology (AIT). These processes were updated in the tendering documents and in the governmental regulations of Vietnam, and have been applied to the projects in Binh Duong province. An example was the tendering strategy of the government to obtain a qualified contractor for the construction project to build the asphalted road from the intersection of Minh Hoa ĐT. 749b to Dau Tieng lake in Binh Duong province. In the end, the consulting company had chosen a suitable contractor to implement the project for the government who was also the project owner.

Executive summary

Rationale of research

This research has been conducted to identify strategies to obtain a qualified contractor.

Objectives of study

To study

Methodology  

The exploratory research method is used to review the literature and study the tendering process at different stages and case of asphalted road from the intersection of Minh Hòa ĐT 749b to Dầu Tiếng lake in Bình Dương province

Findings and conclusion

The problem is the difficulty to get a qualified contractor and help the contractor implement the project effectively which is expected by the owner in order to complete a project on time within the lowest cost budget with the highest quality and avoidance of risks. In order to choose a good contractor  who meets building infrastructure requirement, the owner has to open bidding to choose one who will build some of the main works or overall the works for the owner. The owner must have a good consultant who holds the tendering process to choose a good contractor.

For consultant,

To achieve the objectives that the owner or the representative of the owner needs, they must hold a bidding to choose a good contractor for the project. Holding a bidding process to choose a contractor is very difficult and spends a big amount of money and time for the owner because the owner has to follow a tendering process and procedures issued by the Government. In this project, holding the tendering process to choose a good contractor for the owner is the responsibility of the consultant.

The consultant holds the tendering process carefully in order to choose a good qualified contractor to implement the project. This contractor is the main contractor who will keep the project under control by the consulting supervisor. The consultant creates an equal opportunity in tendering for most of the contractors.

The tendering process is implemented by the consultant, and the consultant finds a good contractor by using the tendering strategy which includes:

·         Prequalification criteria: The consultant considers the technical ability, financial ability and experience of other contractors carefully. The owner considers the standard price and calculates the value of a contribution.

·         Tendering documents: The consultant checks carefully whether the contractors receive all of the tendering documents as well as the instructions in tendering.

·         Evaluation criteria: The consultant considers evaluation criteria which is appropriate with this project. Especially the consultant must consider the technical ability, financial ability and experience of the contractors closely.

·         Experience criteria: the consultant considers experience of the contractors to implement the project.

Recommendation

The owner expects that the project is not only fulfilled or completed with high quality within the estimated budget but also with some level of safety. In this tendering project, the owner hopes that a good contractor will take advantages over other weaknesses to implement the project with high quality and safety, on schedule, and within the estimated bidding budget.

However, technical ability score of the contractor is eighty-two (score decreased -18), therefore the owner should be more interested in some weaknesses of the contractor during the building process in the project, such as:

-          Construction methods (-3),

-          Quality of the types of supplies (-2),

-          Description of qualified technical solutions and reasons for each item (-2),

-          The level of human resources to meet construction requirements (-2),

-          Safety for surrounding buildings (-2), and

-          Critical path = 270 days (-7).

The most important factor is the critical path. If the contractor makes any mistakes which influence the critical part during the period of project implementation, he would have to complete the project later.

These are the very small weaknesses of the contractor, but the owner needs to take notes carefully so that the contractor could complete the project successfully. 

Invitation
to
Preparation English Training at AITVN
For AIT Postgraduate Programs
School of Engineering and Technology – AIT in Vietnam

Dear Applicants,

I have the pleasure in informing you that the School of Engineering and Technology (SET) – AIT will open 8 week English training for those applicants/candidates who are interested in the following Master programs in Project Management in Construction (MPM)


Training information:

Address: 45 Dinh Tien Hoang str., District 1, Ben Nghe Ward, HCMC (Opposite to HTV)
Duration: 26 March – 19 May 2012
Starting date: 27 March 2012
Tuition fee*: USD 400.00 USD

Tuition fee will be paid at the beginning of the training.

*: The tuition fee will be reimbursed for those candidates who are officially admitted to MPM program in September 2012 intake.

More details of the training objectives and training schedule can be found in the attachment.

Please complete and return the enclosed acceptance form to the AIT in Vietnam (AITVN), 6th floor, FCC building, 45 Dinh Tien Hoang, Ben Nghe Ward, Dist. 1, HCMC (Fax No. 08-39107422), attn: Ms. Nguyen Le Tuong (Tel: 08-39107423/ext.117) no later than 20 March 2012.

With best wishes,

COST ESCALATION MANAGEMENT IN LOW-INCOME APARTMENT PROJECT

By

Ngo Quoc Thai

Abstract

             

Vietnam has become the official member of the World Trade Organization since 2007. This dramatic event unfortunately occurred at the same time with the worldwide financial crisis in 2008 and lasted to the present. Consequently, the real estate and construction markets are affected strongly by the inflation, the cost escalation and the tightly controlled credit strategy of the Government.

In addition, project implementation naturally requires a long time to finish, with a huge investment capital and various participating parties. Moreover, the governmental policies in the real estate market and construction industry usually change and overlap among authorities.

Generally speaking, real estate developers are facing with complicated issues of financial structure -  the cost escalation, the slump status  of business market; the  worst status  of  infrastructure and  the incompetency of management but above all it is the cost overrun  in most  of the projects. As a result, costs of housing industry in Viet Nam can be compared with the neighboring countries.

In order to survive, real estate developers must devote themselves to researching about potential cost escalation factors to find out the suitable strategies to reduce and eliminate their impacts. Developers realized that the risks which must be dealt with everyday require considerable foresight, attention to details and tenacity if problems can add costs or cause ineffective overrun. Therefore, most of the developers want to make the target cost plan is as much tightly controlled as possible.

Executive summary

Rationale of research

This research has been conducted to identify the factors involving cost escalation in Apartment projects.

Objectives of study

To study factors affecting cost escalation and project management activities which can be used to control cost escalation.

Methodology  

The exploratory research method is used to review the literature and study the cost management at different stages of project.

Findings and conclusion

Project value become uncertain by various reasons, and appears in each stage of project processes. Risk of cost escalation cannot be eliminated, but can be minimized, transferred or retained. There are some ways for risk arranging such as transferring, avoiding, reducing the negative effect or absorbing them. Among the risks, risk of cost escalation play the conclusive role and both parties have to endure  with many disputes if that factor are not foreseen and discussed to solution before contract signed.

The active and early identification, analysis and evaluation, with control measures can reduce the impact of cost escalation factors and urgently needed to ensure the feasibility and efficiency of the project. Cost escalation management should be valued and implemented from the first steps of the project and continue to maintain in all project implementation cycle.

The case in this report describes a practical implementation in the underground construction stage of an Apartment project. The project team obviously has revealed high-risk factors can seriously affect the success of the project. All lessons need to be conducted and learnt for experience.

The report just briefly describes the various factors of cost escalation that are normally influence to Vietnam construction industry. It is obvious that most popular factors are widely known in construction participants and investors. A standard mitigation plan of these kinds of risk should be prepared   which cover all of potential sources of cost escalation. This important issue should be discussed widely in project team include Owner‘s staff, consultants, architects, engineers, contractors.

In the process of integrating with the world’s economy, Vietnam has been influenced strongly by positive factors on the cost management, contract administration. There are many researches to control the cost escalation in construction projects. However, the following issues are still present and harmful for the success of a project:

·                     Inflation: This issue almost breaking all attempts to cost controlling.

·                     Government:  Bureaucracy, Fluctuation; Late in corruption defense.

·                      Contractual Risks : Understanding , obedience , respecting  the Law

·                     Lacking of transparency: An unclear environment is the major factor contributing towards cost escalation.

We do believe that engineers who address these escalation factors when assessing future project cost and who seek to mitigate the influence of these factors can improve the accuracy of their plan, their cost estimates and program budget. Author of this study do hope that the future of project management in Vietnam will be better, the cost escalation will be well management; these are also the purpose of our work.

Recommendation

For Project Owner

·         Foreseeing and prepare a contingency plan and preserve a maximum risk premium within budget.

·         Transferring partly through a complete strategy in contract

·         Applying policy of advance payment specified for price escalation to fix the price during construction time.

·         Maximizing profit margin to ensure the risk premium can cover the loss from inflation.

·         Postpone the large project until the financial crisis is over.

·         Put priority in recruitment the competent team. Periodic training to the staff.

·         Review the planning and executing work including selection of project delivery method, development of project documentation and selection of contractors.

·         Transparency must become core value in overall process.  Auditing and checking project management activities