Thursday 25 June 2009

Mr. Raman Awale Joins SINOTHAI Contractor

I received an email from Mr Raman Awale (Nepalese, CEIM'2009). He will join with SINOTHAI starting July 2009.

Congratulation to Mr Raman Awale!

And many thanks to Mr Niraj Baidya (CEIM' 2005) who has been very active in recruiting our AIT alumni.

Regards
Hadikusumo

Seminar in Can Tho Vietnam 22 June 2009 part 2



In the seminar, I explained how to build project management competency in an organization. I pointed out important fact that the success of project management will affect the stock price of a company. In this open information era, the market knows very well the performance of a project whether it is delayed or cost overrun. If a project is profitable, the stock price of the company will be appreciated by the market. For example, during january to may 2009, Bangchak Oil Refinery was in the commissioning of the new plants. Due to the success of the projects, the stock price of bangchak went up very high. You can see the comparison between Bangchak stock price (Left Chart) and SET index (Right Chart). Bangchak stock price has rallied up higher than SET index.

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Hadikusumo

Seminar in Can Tho Vietnam 22 June 2009 part 1

Participants attending our seminar


Dr. Hadikusumo and Ms Bich Hoa (AITVN)


Mr Pham Hong Linh - General Director of SouthWest Gas Pipeline 700 Km


Dr Hadikusumo and Ms Bich Hoa made a presentation in Cantho.

I made a presentation about the roles of project management for project performance and organization. Then, I continued with explaining how to build project management competency in an organization.

In the seminar, Mr Pham Hong Linh - the General Director of SouthWest Pipeline 700 km, also attended the meeting and shared his experience on why project management is very important in large construction projects.

The seminar was attended by construction professionals from Cantho city and neighbouring area.

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Hadikusumo

Wednesday 24 June 2009

RISK FACTORS INFLUENCING INTERNATIONAL CONSTRUCTION PROJECTS IN PAKISTAN

Construction is the second largest sector in Pakistan’s economy after agriculture. Roughly 30-35% of employment is directly or indirectly attached with the construction industry. In contrast to the prospective share of Pakistani construction in the local and global economic market, the development of the sector has not been at par with the market demands. Pakistan’s construction industry is still characterized as pressured and adversarial. Further, construction projects in Pakistan generally run over time and over budget; do not necessarily meet user expectations; and often require remedial works due to construction defects, with many conflicting issues, leading to project disputes and litigation.

Mr. Ahsem Maqsoom (M. Eng’g in CEIM) made a research to (1) understand the basic concepts involved in international construction business and their limitations; (2) study the reasons and characteristics for internationalization of firm; (3) study the problems and risks associated with international construction projects; (4) study the entry modes and formulation of healthy strategies for international construction business; (5) identify the risk factors influencing international construction projects in Pakistan

He found out that new opportunities are constantly growing as a result of globalization in construction sector. Construction firms want to have projects at international level. In every construction project, risks are present. Risks in international construction projects are more critical as compared to domestic projects especially when developing countries are involved. That’s why it is desirable for international construction firms who want to do construction projects in foreign country, to identify the risks as early as possible, so that suitable strategies can be made for the penetration in to the foreign construction market and to manage these risks before the actual execution of projects on international level.

Risk consequences in construction projects may reach an undesirable level because of inadequate resources and lack of advancements in technologies, therefore a thorough awareness and identification of risks is essential to prepare suitable strategies.

Mr. Maqsoom’s abstract is copied and posted.

Abstract

Globally construction companies are entering in an era of internationalization. This brings a need of developing and defining strategies to cope with the international demands of quality, risk and profit. Different models related to the international construction have been studied in context with the following issues.
• Globalization and construction industry development
• Characteristics of internationalization
• Risks or Obstacles associated with international Construction business
• Competitive advantage and strategies for international construction business

International construction projects have many risks involved due to the nature of their structure. There are more parties involved and more phases are present in international construction projects than a conventional construction project. Each party has its different objectives. This difference in the objectives of parties leads to conflict of interest which is a root cause of risks in international construction projects. An international construction adaption model has been developed in this research. This model had been applied on Pakistan construction industry to know the practical example of internationalization. The risks factors which influence the international construction business in Pakistan have been identified and then classified on country, construction industry and project bases. Some critical problems related to international construction projects have been indicated from these identified risks. Some recommendations have also been suggested to manage the critical risk for the success of international projects and development of international construction industry of Pakistan.

Tuesday 23 June 2009

Quantitative Risk Assessment for Offshore Platform Process System

Oil and gas industry is one of sectors that have high risks. It can range from minor to major events. For instance: oil leaks, gas leaks resulting to catastrophes like explosions, fires and oil spread. These disasters might cause fatality, injury, pollution, economic loss and even disruption of business. How can these accidents be prevented? How can the level of risk be assessed? And how can these things be handled or managed?

Mr. Nguyen Van Thanh made a case study on “Quantitative Risk Assessment for the Process System on an Offshore Platform: A Case Study Of QRA For Process System Of Platfrom RP-3 Of J.V. Vietsovpetro”. This project is a partial requirement for his Professional Masters degree in Construction Engineering and Infrastructure Management.

He concluded that:
(1) to evaluate and calculate the level of risk of a project, a factory or an offshore platform, the general formula that can be used is: R = F x C (where : R = Risk ; F = Frequency and C = Consequence). Based on the formula of risk, reduction of the consequence and reduction of the frequency are the two ways to reduce the risk.

(2) to reduce the consequence or frequency of risk, mitigation measures will be proposed if the risk value is higher compared with the risk criteria. The process system should be divided into the segments based on the properties, functions and working place.

(3) to assess the risk, the process system of platform RP-3 (Vietsovpetro Joint Venture) was divided into 8 segments based on their function, working condition and location. Comparing to the risk acceptance, the calculated risk in the process system of platform RP-3 is lower. Therefore, the risks are acceptable.

Mr. Nguyen Van Thanh’s abstract is copied and posted.


ABSTRACT

Quantitative Risk Assessment is a mean of objectively measuring the risks from hazardous activities of a facility or operation. The risks are qualified in terms of their probability and consequences. By comparison with a suitable risk criterion, the results can be used to help decide whether the facility is unacceptable or whether the improvements are necessary
This thesis attempts to explore the existing approaches of Quantitative Risk Assessment and apply this technique to offshore oil and gas industry, a very high risk sector, by proposing a frame work to conduct quantitative risk assessment for process system of offshore platforms.
Based on the given frame work, a case study will be performed to understand the effectiveness of “Quantitative risk assessment for process system of PR-3 offshore platform in Dragon oil field of Vietsovpetro J.V”

Monday 22 June 2009

Transformational Style: The Highly Effective Leadership Style in Thai Construction Industry

In Thailand, the construction industry grown quickly especially in the infrastructure sector since the demand of the population on infrastructure is increasing. Construction is a project based industry and its success depends on several factors including the manager’s personality traits, competencies or necessary skills, and leadership styles which are appropriate for dealing with construction work have high impact on project outcomes.

Ms. Kedsuda Limsila conducted a case study on “Effective Leadership In The Construction Industry In Thailand“. This was focused mainly on the influence of project managers’ leadership styles on outcomes and was conducted in order to identify the most appropriate leadership style in the Thai construction industry.

She found out that:(1) in general, project managers in Thai construction projects apply a variety of leadership styles, most often adopted is the transformational style, followed by the transactional style and the laissez-faire style; (2) the entire range of behaviors of transformational project managers and contingent reward behavior from the transactional style are capable of generating leadership effectiveness, subordinate satisfaction and extra effort while the other leadership behaviors cannot; (3) in Thai construction projects, subordinates with extroversion personality tend to produce greater work effectiveness and exert extra effort whereas subordinates with conscientiousness and/or openness to experience personality tend to be satisfied with and exert extra effort into their work; (4) several independent factors affect the decision making of project managers in the process of selecting the leadership styles to apply to their subordinates. The more the factors with positive relationships appear, the higher the likelihood that project managers will select those related leadership behaviors whereas the other factors with negative relationships have the opposite effect; (5) several factors that positively affect leadership outcomes (effectiveness, satisfaction, extra effort, and commitment). Some factors have association with only one outcome whereas other factors have associations with several outcomes. The higher the level of the relevant factors present, the higher the degree to which leadership outcomes will occur.

Her results pointed out that leadership style mostly adopted in Thai construction projects is the transformational style since this is the most effective leadership style to apply with Thai subordinates.

Her Ph.D. dissertation abstract is copied and posted.

ABSTRACT

The success of a construction project depends on several important factors, one of which is the competence of its project manager. There are several issues regarding the project manager have impacts on project outcomes. Examples include the project manager’s leadership behaviours, personal attributes, and competencies or necessary skills which are appropriate for dealing with construction work. Consequently, there are many questions need answers regarding the competence of project managers and issues of effective project management. For instance, what is the most applied leadership style at the current time and what are the different outcomes from applying different leadership styles? What is the most appropriate leadership style? What are the necessary competencies of an effective project manager?

Consequently, this study was conducted to investigate the actual leadership behaviours and personal competencies of project managers. It also explored the key personality traits of subordinates in Thai construction projects. Specifically, this study examined how leadership behaviours, leader personal competencies and subordinate personality traits influence leadership outcomes (effectiveness; satisfaction; extra effort; commitment) and subordinates’ work performance (work quality; work quantity; problem solving creativity; teamwork and work discipline).

Leadership behaviors and outcomes were measured using Bass and Avolio’s (2004) Multifactor Leadership Questionnaire (MLQ), subordinates’ personalities were measured following the Five Factor Model whereas project manager’s personal competencies were measured following the Project Manager Competency Development (PMCD) defined by Project Management Institute (2002). During the data collecting process, data regarding the actual leadership behaviours, leadership outcomes and personal competencies of project managers in Thai construction projects were gathered from subordinate group whereas project managers provided the data on their subordinates’ key personalities and work performance level based on their opinion.

The findings of this study answer several questions on the top of this page that leadership style mostly adopted in Thai construction projects is the transformational leadership style. It further clarifies that this style is suitable for application with Thai people since it created leadership outcomes superior to the other styles (transactional style and laissez-faire style). In addition, transformational leadership supports subordinates to produce better work quality and work quantity. Moreover, the subordinates also tend to have high creativity in problem solving when working with transformational leaders.

Besides, the association between PMCD personal competencies and MLQ leadership behaviours revealed that the entire personal competencies defined by Project Management Institute have significant positive relationship with every factor in the transformational style but they have significant positive relationship with only contingent reward factor in the transactional style whilst having negative relationship with the laissez-faire style. It implies that project managers who apply transformational behaviours are likely to possess the necessary personal competencies required for competent project managers also.

Friday 19 June 2009

MPM and CEIM Photo in AIT Main Campus Thailand


Hi all, i am attaching a photo taken in April 2009 in AIT Main Campus Thailand.

Professional Master in Project Management in Construction and CEIM students took photo at the NEW landmark of AIT in front of our administration building.

Dean Prof. Worsak, Dr. Hadikusumo, Dr Therathorn (Adjunct Faculty from Perfect Property), Mr Mike Woodward (Adjunct Faculty from Foster Wheeler) were participating in the photo.

This is a photo to remember our Green Campus in AIT Thailand.

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Hadikusumo