Nowadays, Thailand logistics development is in the level of Physical Distribution which supports only delivery of the goods to the consumers. This level also covers the activities of the transportation, the stock of goods, material management, and packaging of the products. Thailand logistics transport modes, however, are not integrated. The lack of efficient logistics in multimodal transportation logistics obstructs Thailand to be the good logistic hub. So the Government of Thailand needs to focus in transport infrastructure to link all modes to be multimodal transportation.
Since Thailand developed the strategic planning, the success appropriate level has not reached. One of main reasons is lack of continuity in implementation of plans, each implementation of plan is not developed in the same direction and all plans are not integrated together. In addition, due to limitated budget and resources. In order to optimize resources in the right direction and achieve highest efficiency, Thailand needs the strategic planning which be created by basing on the multimodal transportation to be the guideline and to be indicator to meet the goal. It is obvious that GOT needs to improve implementation plan of strategic planning because of the strategic planning is a vital part in budget allocation process.
Ms. Suphitcha Phoemphoonthanyakit made a research which aimed to improve the strategic planning for multimodal transportation hub development in Thailand. Her 3 specific objectives are to (1) investigate the existing strategic planning of multimodal transport logistics and to get the key multimodal transportation parameters so that the strengths and weaknesses can be identified, (2) find out the appropriate strategic planning for multimodal transportation hub development project; and (3) propose the recommendations for improving strategic planning which appropriates for multimodal transportation hub development project.
Her result showed that in order to develop multimodal transport projects, the key parameters which should be considered are technical development, project demand, project return, laws and regulations, environmental concern, resources availability, and political concern.
From the expert interview, the researcher found out that the root causes of problem come from:
a. The department does not have the same direction to develop their projects.
b. The department proposes the projects by lacking of consider the strategic plan under the ministry.
c. The department proposes the projects by aiming target that they have to get the budget of their project at least same amount of previous year or otherwise more then previous year.
d. The department proposes the projects by sticking on their function of work.
e. The department proposes the projects and conducts the feasibility study by themselves so the bias may occur in order to make the project feasible.
She also found out that the projects which each department propose could not meet the key parameters of multimodal transportation hub. The main factors that causes the case studies could not be the multimodal transportation hub are:
a. The case studies lack of railroad transportation infrastructure development project and have low the opportunities to be the hub due to the demand are not high.
b. The demand forecast of case studies are significant different from the actual demand from interview and site observation.
For budget allocation for multimodal transportation, researcher uses budget allocation process toward the case studies in order to find out the characteristic of budget allocation of case studies. After researcher towards the budget allocation process to the case studies completely, the researcher found that three main problems occurred.
The first problem is the budget allocation for four year implementation plan is not optimization. On the right way, the budget should be allocated to projects that are multimodal transportation instead because they can give more advantages to logistics transportation system. The root cause of this problem comes from, OTP could not develop the case studies by integrating with other projects in order to be multimodal transportation.
The second problem is the budget allocation for yearly implementation plan is not optimization. This problem is similar with the first problem. The difference is the excursion area, the first problem occurred at four year implementation plan but the second problem occurred at yearly implementation plan. The OTP could not develop the case studies by integrating with other projects in order to be multimodal transportation.
The third problem is no budget allocation to case studies. The root cause of this problem comes from:
a. Lack of continuousness in project development due to the political problem.
b. Lack of budget expenditure data of previous yearly during budget requisition forming.
Her thesis abstract is copied and posted.
ABSTRACT
Due to the main national policy of the government to strengthen the position of Thailand as the economic and transport hub of the region, it is necessary to develop the multimodal transportation which can efficiently link all modes of transport, i.e., land transport (highway and railway), waterway transport, and air transport so that it can reduce the national logistics costs and lessen the energy consumption of transport sector. Although Thailand has developed the strategic planning but still it has not reached the success up to the appropriate level as targeted. Moreover, Thailand has limitations in budget and resources. In order to optimize resources in the right direction and achieve highest efficiency, Thailand needs the effective budget allocation system to comply with multimodal transportation logistics plan.
A research has been done based on the two case studies which were conducted on the river port in the north part and deep seaport in the south part of Thailand. A qualitative research technique has been used by taking into account expert’s interviews, site observation, and main data source.
The finding of this study has shown that the strategic multimodal transportation planning of Thailand has some deficiencies and obstacles in project integration. Therefore, the recommendation of strategic multimodal transportation planning which is developed in the study will help the Government of Thailand, the Bureau of the Budget, Ministry of Transportation, and The departments under the Ministry of transportation, and other participants in project integration to follow the same direction and properly allocate the budget for the projects to achieve the multimodal transportation goal.
Monday 31 August 2009
Wednesday 26 August 2009
Workers Participation In Safety Management System In Construction Projects In Thailand
The construction project faces many problems like accident during construction. Many researchers mentioned that maybe because most of the workers were unskilled since they worked before in agriculture but due to seasonal works, they changed their jobs. Moreover, they had their own unsafe habits from previous works especially in agriculture carrier.
In developing country especially in Thailand, to manage the system to provide safety for the workers and others from risks arising out of work activities, it is necessary for every employer’s concerned with construction (client, professional adviser or contractor) to recognize the hazards and manage operations to eliminate them as far as is reasonably possible (Davies and Tomasin, 1996). Hence, the manager level has to provide Safety Management System for the workers. However, the workers especially in Thailand need workers participation to implement as business core function since the company cannot choose better the safety programs whether they fit in best or not for the company. Besides, the accident happening rate in the construction project still remains at improper levels. Furthermore, by having an affective safety programs and the way workers participation can be embedded in organization because it can encourage mutual cooperation between management and workers in the operations of the programs and decisions that effect their safety and health (Aksorn and Hadikusumo, 2007, p.2).
Mr. Alvin Agustinus Gahari made a case study on “Workers Participation in Safety Management System in Construction Projects in Thailand” which primary objectives are to (1) investigate the workers participation in safety programs and (2) investigate methods to encourage the workers participation
Based on his research, below are the conclusions drawn:
1) Skill and knowledge, with clear safety program can encourage workers participation in safety organization.
2) Leadership, trust, open communication, skill and knowledge, incentive and clear safety program can encourage workers participation in risk analysis and method statement.
3) Open communication, incentive and clear safety program can encourage workers participation in safety inspection.
4)Clear safety program can encourage workers participation in safety training.
5) Trust and incentive can encourage workers participation in safety committees.
6) Leadership, trust, open communication and incentive can encourage workers participation in accident investigation and analysis.
7) Leadership, trust, open communication, with skill and knowledge can encourage workers participation in personal protection programme.
8) Leadership, skill and knowledge, with clear safety program can encourage workers participation in in-house safety rules and regulations.
9) Leadership and clear safety program can encourage workers participation in safety orientation.
10) Leadership, trust, open communication, skill and knowledge, incentive, with clear safety program can encourage workers participation in Job Hazard Analysis.
11) Leadership, trust, open communication, skill and knowledge, incentive, with clear safety program can encourage workers participation (overall).
His thesis abstract is copied and posted.
ABSTRACT
Safety in construction projects has greatly risen in current years particularly in Thailand. The relationship between workers participation in safety program and workers participation encouragement was very important in this study. It caused that different construction projects have generated some troubles, one of which is accident during construction. Accidents do not happen naturally but are caused by certain reasons, most of which can be predicted, controlled or avoided.
Prior to works begin can be happened by accidents, and also subsequent to the works have been completed can be happened by them, because of lacking design or construction, causing fatality or wound to those engaged on maintenance work and to members of the public. The success of any business counts on the workers and they are the bottom line as well. Protecting workers from hazards not only constructs good business sense, but also the right thing to do. In addition, manager level was able to erect Safety Management System with workers participation. Thus, it is proposed that this research was able to focus on safety responsibility in safety program, leadership, trust, open communication, skill and knowledge, incentive and clear safety program.
The required data was collected by using questionnaire survey. The objectives were to investigate the workers participation in safety programs and investigate methods to encourage the workers participation in Thailand construction project. The statistical methodology that used for examine the hypotheses was the Pearson’s correlation method. The result indicated that workers participation affects safety program. Some methods to encourage workers participation tended to follow safety programs.
There were 54 respondents returned questionnaires from their projects. All of questionnaires were visited personally and tracked through phone call and more visits were also conducted.
The construction projects that have in-house safety rules and regulations in their construction projects have a tendency to improve safety performance instead of without in-house safety rules and regulations. This safety program was the first rank or else the most important in this study. Furthermore, some methods can encourage workers participation in safety programs.
Further study is supposed to include not only less experience but also more experience especially for the person who has responsibility in safety. Moreover, this study would be better if it includes the estimation value of the construction project so it can be known the construction projects which have a good or bad safety program.
In developing country especially in Thailand, to manage the system to provide safety for the workers and others from risks arising out of work activities, it is necessary for every employer’s concerned with construction (client, professional adviser or contractor) to recognize the hazards and manage operations to eliminate them as far as is reasonably possible (Davies and Tomasin, 1996). Hence, the manager level has to provide Safety Management System for the workers. However, the workers especially in Thailand need workers participation to implement as business core function since the company cannot choose better the safety programs whether they fit in best or not for the company. Besides, the accident happening rate in the construction project still remains at improper levels. Furthermore, by having an affective safety programs and the way workers participation can be embedded in organization because it can encourage mutual cooperation between management and workers in the operations of the programs and decisions that effect their safety and health (Aksorn and Hadikusumo, 2007, p.2).
Mr. Alvin Agustinus Gahari made a case study on “Workers Participation in Safety Management System in Construction Projects in Thailand” which primary objectives are to (1) investigate the workers participation in safety programs and (2) investigate methods to encourage the workers participation
Based on his research, below are the conclusions drawn:
1) Skill and knowledge, with clear safety program can encourage workers participation in safety organization.
2) Leadership, trust, open communication, skill and knowledge, incentive and clear safety program can encourage workers participation in risk analysis and method statement.
3) Open communication, incentive and clear safety program can encourage workers participation in safety inspection.
4)Clear safety program can encourage workers participation in safety training.
5) Trust and incentive can encourage workers participation in safety committees.
6) Leadership, trust, open communication and incentive can encourage workers participation in accident investigation and analysis.
7) Leadership, trust, open communication, with skill and knowledge can encourage workers participation in personal protection programme.
8) Leadership, skill and knowledge, with clear safety program can encourage workers participation in in-house safety rules and regulations.
9) Leadership and clear safety program can encourage workers participation in safety orientation.
10) Leadership, trust, open communication, skill and knowledge, incentive, with clear safety program can encourage workers participation in Job Hazard Analysis.
11) Leadership, trust, open communication, skill and knowledge, incentive, with clear safety program can encourage workers participation (overall).
His thesis abstract is copied and posted.
ABSTRACT
Safety in construction projects has greatly risen in current years particularly in Thailand. The relationship between workers participation in safety program and workers participation encouragement was very important in this study. It caused that different construction projects have generated some troubles, one of which is accident during construction. Accidents do not happen naturally but are caused by certain reasons, most of which can be predicted, controlled or avoided.
Prior to works begin can be happened by accidents, and also subsequent to the works have been completed can be happened by them, because of lacking design or construction, causing fatality or wound to those engaged on maintenance work and to members of the public. The success of any business counts on the workers and they are the bottom line as well. Protecting workers from hazards not only constructs good business sense, but also the right thing to do. In addition, manager level was able to erect Safety Management System with workers participation. Thus, it is proposed that this research was able to focus on safety responsibility in safety program, leadership, trust, open communication, skill and knowledge, incentive and clear safety program.
The required data was collected by using questionnaire survey. The objectives were to investigate the workers participation in safety programs and investigate methods to encourage the workers participation in Thailand construction project. The statistical methodology that used for examine the hypotheses was the Pearson’s correlation method. The result indicated that workers participation affects safety program. Some methods to encourage workers participation tended to follow safety programs.
There were 54 respondents returned questionnaires from their projects. All of questionnaires were visited personally and tracked through phone call and more visits were also conducted.
The construction projects that have in-house safety rules and regulations in their construction projects have a tendency to improve safety performance instead of without in-house safety rules and regulations. This safety program was the first rank or else the most important in this study. Furthermore, some methods can encourage workers participation in safety programs.
Further study is supposed to include not only less experience but also more experience especially for the person who has responsibility in safety. Moreover, this study would be better if it includes the estimation value of the construction project so it can be known the construction projects which have a good or bad safety program.
Tuesday 25 August 2009
Criteria For Infrastructure Project Selection: A Case Study In Cantho City, Vietnam
Vietnam has been successful in expanding access to infrastructure services over the past twenty years. The investment in infrastructure spreads all over the country, supports to growing economy, and expands the basic services to poor rural areas. Entering WTO since October 2006 offers Vietnam, new chances in economic expanding and opens new challenges for infrastructure as well. Dealing with high demand in infrastructure services, the Vietnam’s authority tries to attract capital from many sources of funds in order to expand and invest more infrastructure projects in both central and local government. However, the investments are still spreaded, uncompleted and the maintenance works are also neglected. One of main reasons is weakness and shortcoming in planning, selecting and budget allocating process. Setting project selection between different projects commonly accord with the absence of economic criteria. It will be a wasting of resource to carry out the project that brings the lower socio-ecomomical benefit compared with others. The efficiency and effectiveness of selecting infrastructure projects are hence the main concern of local authority.
Nguyen Thi Xuan Dan made a study to develop infrastructure prioritization criteria for each kind of infrastructure project at local government in Vietnam. His study focused on (1) in-depth understand laws and regulations for transportation project investment then specify shortcoming of regulations existed, (2) investigate and evaluate the current project selection process in Vietnam in term of criteria as well as procedure of so that its strengths and weaknesses can be identified; and (3) develop and propose criteria for each step of infrastructure project selection process in Vietnam.
He found out that there are many laws and regulation related to the infrastructure project investment. It consists of four main laws that are Law on Organization of People’s Councils and People’s Committees, Law on Budget, Law on Construction and Law on Investment affect the making investment project. Relevant laws include Law on land, Environment law, Law of tendering and Technical standards and grad of the project in Vietnam. In addition, there are a large number of Decrees, Circulars, and Guidelines for investing infrastructure project in Vietnam. In the review of laws and regulations and interview information, the three short comings of current regulations were identified: (1) taking long time to recommend, adjust when getting problems in large mechanism of Vietnam government with vertical horizon administration, (2) limitation of updated regulation documents, and (3) and deficient in good coordination of circulars and guidelines.
His study also pointed out some weaknesses that still exist in the current selection process such as (1) there is no establishment of criteria, guidelines and regulations for prioritizing project. Without prioritization, the project selection passes the conceptual and investment elaboration stage difficultly and complicatedly, (2) the setting up of criteria for project selection process is also not paid attention. The selection of project is based on this importance factor and project policy compliance under budget availability.
His thesis abstract is copied and posted
ABSTRACT
In accordance with the fast growing of socio-economic development in Vietnam, the demand for enhancing and expanding the infrastructure structure is very high. However, under budget limitation of developing country, local government should have an adequate selection to possibly pick the most promising project for investment. The objective of this study is to propose the criteria for selection process of infrastructure project of local government. In order to achieve this target, the investigation of existing project selection process was carried out to identify strengths and weaknesses three stages conceptual, investment project elaboration and approval stage of this process. Data collection related to the investigation was collected from legal documents, working report and interview information from Cantho, Vietnam. Using secondary data analysis, the study specifies five factors influencing the project selection. Since, the identification of criteria from these factors for each stage of selection process was eight, eleven, and six criteria should carefully consider in conceptual stage, investment project elaboration stage, and approval stage. Finally, based on the evaluation of developed criteria, recommendations are conducted for improving the criteria of infrastructure project of local government in Vietnam.
Nguyen Thi Xuan Dan made a study to develop infrastructure prioritization criteria for each kind of infrastructure project at local government in Vietnam. His study focused on (1) in-depth understand laws and regulations for transportation project investment then specify shortcoming of regulations existed, (2) investigate and evaluate the current project selection process in Vietnam in term of criteria as well as procedure of so that its strengths and weaknesses can be identified; and (3) develop and propose criteria for each step of infrastructure project selection process in Vietnam.
He found out that there are many laws and regulation related to the infrastructure project investment. It consists of four main laws that are Law on Organization of People’s Councils and People’s Committees, Law on Budget, Law on Construction and Law on Investment affect the making investment project. Relevant laws include Law on land, Environment law, Law of tendering and Technical standards and grad of the project in Vietnam. In addition, there are a large number of Decrees, Circulars, and Guidelines for investing infrastructure project in Vietnam. In the review of laws and regulations and interview information, the three short comings of current regulations were identified: (1) taking long time to recommend, adjust when getting problems in large mechanism of Vietnam government with vertical horizon administration, (2) limitation of updated regulation documents, and (3) and deficient in good coordination of circulars and guidelines.
His study also pointed out some weaknesses that still exist in the current selection process such as (1) there is no establishment of criteria, guidelines and regulations for prioritizing project. Without prioritization, the project selection passes the conceptual and investment elaboration stage difficultly and complicatedly, (2) the setting up of criteria for project selection process is also not paid attention. The selection of project is based on this importance factor and project policy compliance under budget availability.
His thesis abstract is copied and posted
ABSTRACT
In accordance with the fast growing of socio-economic development in Vietnam, the demand for enhancing and expanding the infrastructure structure is very high. However, under budget limitation of developing country, local government should have an adequate selection to possibly pick the most promising project for investment. The objective of this study is to propose the criteria for selection process of infrastructure project of local government. In order to achieve this target, the investigation of existing project selection process was carried out to identify strengths and weaknesses three stages conceptual, investment project elaboration and approval stage of this process. Data collection related to the investigation was collected from legal documents, working report and interview information from Cantho, Vietnam. Using secondary data analysis, the study specifies five factors influencing the project selection. Since, the identification of criteria from these factors for each stage of selection process was eight, eleven, and six criteria should carefully consider in conceptual stage, investment project elaboration stage, and approval stage. Finally, based on the evaluation of developed criteria, recommendations are conducted for improving the criteria of infrastructure project of local government in Vietnam.
Monday 24 August 2009
An Owner’s Project Planning Approach For High Rise Building In Design And Construction: A Case Study Of Petrovietnam Commercial And Financial Centre
In Vietnam, the concept and practice of Owner’s Project Planning (Cost, Scope, Schedule and Quality) have been used in recent years. The purpose of Owner’s Project Planning is to: (a) describe briefly what project planning is and how it is carried out; (b) identify the major obstacles to effective planning and suggest ways of over-coming them (Laufer, 1989).
Mr. Nguyen Hoang Loc made a research to study the owner’s project planning approach for building project in design and construction and to develop a guideline for project owner to develop project plan to ensure the completion of projects.
He found out that the use of Owner’s Project Planning in the construction industry has greatly increased in recent years. Sophisticated technology-based products has required a high degree of design, manufacture, installation, and commissioning skills that have not been readily available to the industry’s Owners. As a result, Owner should outsource to contractors including Cost, Scope, Schedule and Quality, Procurement, Risk and Safety inspection.
However, many of contractor companies do not have the necessary expertise to undertake work satisfactorily and, as a consequence, are unable to give their clients the service they require. Therefore, owners need plan approach for building in design and construction which must be done by the project owner to ensure a successful completion of project, and owners needs to develop a strategy that allow him to manage contractor effectively and efficiently.
He also found out that there are similar owner’s projects planning strategy from local owners. It can be concluded that owner’s project planning strategy in terms of procurement and cost from local owners has been aligned and organized, but in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the owner’s project planning strategy in local owner in order to improve the contractor management performance. In contrast, it can be concluded that owner’s project planning strategy from international owner in case D, has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.
His thesis abstract is copied and posted.
ABSTRACT
In Viet Nam, the concept and practice of Owner’s Project Planning (Cost, Scope, Schedule and Quality) have been used in recent years. Owner’s Project Planning Approach for the High Rise Building in Design and Construction in the Construction Industry Development has been greatly important, especially high rise building projects. Project Planning is the bridge between the ideas and execution. The purpose of Project Planning is to define the exact parameters of a project and ensure that all the pre-requisites for Project Execution and control are in place. Project planning marks the completion of the Project Plan, no work is left uncovered. At the conclusion of Project Planning, the Business Case is revised and re-evaluated based on the completed Planning documents and a decision is again made to either halt the project, or to commit the resources necessary for Project Execution and control.
The Objective of Owner’s Project Planning is effectively and efficiently including Cost, Scope, Scheduling, Quality, Procurement, Risk, Safety, Manage the relationship in terms of partnering, Leadership Style and Communication. Therefore, Owners need to develop a Project Plan that allows him to control of Design and Construction for High Rise Building Project. In order to understand how the Project Planning is being operated together with the strengths and the weaknesses of high rise building in Design and Construction, Owner’s Project Planning Approach for Petrovietnam Commercial and Financial Centre were investigated through documentation, objective, problem, archival, and interview.
The planning of capital investment project is a project process, which processes from feasibility studies, to preliminary planning and lastly to detailed planning. In this thesis, the project has focused on normative techniques of planning and control namely.
Search in the current literature deals mainly with the following types of Owner’s Project Planning Approach for High Rise Building Project in Design and Construction:
- Cost planning.
- Scope planning.
- Schedule planning.
- Quality planning.
- Risk planning.
- Procurement planning.
Project Planning, especially from the Owner point of view, is a relatively new field. After more than a decade of intensive development it is still difficult to point at significant progress in the understanding of planning principles.
A number of key elements are added to the Project Plan, including project-specific items such as change control, acceptance management and issue management, as well as externally-focused items such as organizational change management and project transition. The initial list of project risks is augmented, and detailed mitigation plans are developed.
Mr. Nguyen Hoang Loc made a research to study the owner’s project planning approach for building project in design and construction and to develop a guideline for project owner to develop project plan to ensure the completion of projects.
He found out that the use of Owner’s Project Planning in the construction industry has greatly increased in recent years. Sophisticated technology-based products has required a high degree of design, manufacture, installation, and commissioning skills that have not been readily available to the industry’s Owners. As a result, Owner should outsource to contractors including Cost, Scope, Schedule and Quality, Procurement, Risk and Safety inspection.
However, many of contractor companies do not have the necessary expertise to undertake work satisfactorily and, as a consequence, are unable to give their clients the service they require. Therefore, owners need plan approach for building in design and construction which must be done by the project owner to ensure a successful completion of project, and owners needs to develop a strategy that allow him to manage contractor effectively and efficiently.
He also found out that there are similar owner’s projects planning strategy from local owners. It can be concluded that owner’s project planning strategy in terms of procurement and cost from local owners has been aligned and organized, but in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the owner’s project planning strategy in local owner in order to improve the contractor management performance. In contrast, it can be concluded that owner’s project planning strategy from international owner in case D, has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.
His thesis abstract is copied and posted.
ABSTRACT
In Viet Nam, the concept and practice of Owner’s Project Planning (Cost, Scope, Schedule and Quality) have been used in recent years. Owner’s Project Planning Approach for the High Rise Building in Design and Construction in the Construction Industry Development has been greatly important, especially high rise building projects. Project Planning is the bridge between the ideas and execution. The purpose of Project Planning is to define the exact parameters of a project and ensure that all the pre-requisites for Project Execution and control are in place. Project planning marks the completion of the Project Plan, no work is left uncovered. At the conclusion of Project Planning, the Business Case is revised and re-evaluated based on the completed Planning documents and a decision is again made to either halt the project, or to commit the resources necessary for Project Execution and control.
The Objective of Owner’s Project Planning is effectively and efficiently including Cost, Scope, Scheduling, Quality, Procurement, Risk, Safety, Manage the relationship in terms of partnering, Leadership Style and Communication. Therefore, Owners need to develop a Project Plan that allows him to control of Design and Construction for High Rise Building Project. In order to understand how the Project Planning is being operated together with the strengths and the weaknesses of high rise building in Design and Construction, Owner’s Project Planning Approach for Petrovietnam Commercial and Financial Centre were investigated through documentation, objective, problem, archival, and interview.
The planning of capital investment project is a project process, which processes from feasibility studies, to preliminary planning and lastly to detailed planning. In this thesis, the project has focused on normative techniques of planning and control namely.
Search in the current literature deals mainly with the following types of Owner’s Project Planning Approach for High Rise Building Project in Design and Construction:
- Cost planning.
- Scope planning.
- Schedule planning.
- Quality planning.
- Risk planning.
- Procurement planning.
Project Planning, especially from the Owner point of view, is a relatively new field. After more than a decade of intensive development it is still difficult to point at significant progress in the understanding of planning principles.
A number of key elements are added to the Project Plan, including project-specific items such as change control, acceptance management and issue management, as well as externally-focused items such as organizational change management and project transition. The initial list of project risks is augmented, and detailed mitigation plans are developed.
Wednesday 19 August 2009
Motivation Of Construction Engineers In Ho Chi Minh City, Vietnam
The economy of Vietnam grows rapidly, especially in HCM city which has always reported as have high levels of economic activity, constantly leading in terms of economic growth since entering WTO. Under the strategy for industrial development to 2010 and the vision for 2020, HCM City is expected to become an industrial city by 2015 and play the role as an economic driver of the southern focal economic zone and the whole country. These development policies provide a chance for development of construction industry in the City. On the other hand, the HCM city people’s committee will have new policies to improve the goal of construction industry. One of these is increasing the productivity of construction engineers through motivation of construction engineers.
In industrial construction, one of the issues confronting constructors and owners of construction project is how to improve construction productivity. Stated in another way, how can construction projects be completed cost effectively? It is believed that increasing construction engineer productivity through improved motivation would result in significant savings in construction costs. The behavior of engineers affects project productivity. There fore, the study of engineer motivation is very important.
Mr. Nguyen Duy made a case study to know the wants of the construction engineers in HCM City, Vietnam and how it contributes to effective motivation policies and programs to increase their productivity. His study’s objectives were: (1) to survey construction engineers’ needs and their satisfaction in the Vietnam construction industry; (2) to propose some recommendations to motivate construction engineers working effectively; and (3) to specify the validity of the expectancy theory toward motivation of construction engineers in the Vietnam construction industry.
Mr. Duy’s concluded that the construction engineers’ needs and satisfactions did not meet. Almost all engineers considered a three high need factors such as good orientation and training, good relationship with colleagues and good welfare condition. The company must be properly addressed these factors if it wants to carry out the policy that will motivate the engineers effectively.
The result of his study implies that engineers’ general satisfaction and intrinsic satisfaction are higher than satisfaction on their need factors. This means engineers’ professions are attractive for them, but the outcome of work can not meet their needs successfully.
His study also illustrated that the validity of expectancy theory was not strongly supported. But expectancy theory still provided a conceptual base for understanding the motivation of construction engineers. Analyzing the relationships predicted by expectancy theory implied that job clarify is useful to improve the expectancy of engineers even though the expectancy has no strong relationship with effort and performance.
His thesis abstract is copied and posted.
ABSTRACT
Construction industry is the one that drives virtually ever economy. It is needed to provide the infrastructure, plants, industries and houses for the population. For the industry to serve the economy it needs resources. One of the most important and critical resource in construction is manpower. This resource, unlike other resources, is the only one that free will. As a result, it is important for manager of construction to understand the factors that influence construction engineer performance. To motivate construction engineers, it is necessary to know how they respond to their environment and what they need. A survey was developed base on expectancy theory. This survey was conducted in construction industry in HoChiMinh city, Vietnam. The study was carried out to determine the factors that affect the motivation of engineers, for example, physiological (breathing, food, water, sleep,...), safety (security of body, of employee, of health..), belonging (friendship, family, ..), esteem (confident, respect by others, achievement,..), self-actualization (morality, creativity, acceptance of facts,…). Hence, proposing some recommendations to motivate construction engineers working effectively. Further more, this research also specify the validity of the expectancy theory toward motivation of construction engineers in the Vietnam construction industry.
In industrial construction, one of the issues confronting constructors and owners of construction project is how to improve construction productivity. Stated in another way, how can construction projects be completed cost effectively? It is believed that increasing construction engineer productivity through improved motivation would result in significant savings in construction costs. The behavior of engineers affects project productivity. There fore, the study of engineer motivation is very important.
Mr. Nguyen Duy made a case study to know the wants of the construction engineers in HCM City, Vietnam and how it contributes to effective motivation policies and programs to increase their productivity. His study’s objectives were: (1) to survey construction engineers’ needs and their satisfaction in the Vietnam construction industry; (2) to propose some recommendations to motivate construction engineers working effectively; and (3) to specify the validity of the expectancy theory toward motivation of construction engineers in the Vietnam construction industry.
Mr. Duy’s concluded that the construction engineers’ needs and satisfactions did not meet. Almost all engineers considered a three high need factors such as good orientation and training, good relationship with colleagues and good welfare condition. The company must be properly addressed these factors if it wants to carry out the policy that will motivate the engineers effectively.
The result of his study implies that engineers’ general satisfaction and intrinsic satisfaction are higher than satisfaction on their need factors. This means engineers’ professions are attractive for them, but the outcome of work can not meet their needs successfully.
His study also illustrated that the validity of expectancy theory was not strongly supported. But expectancy theory still provided a conceptual base for understanding the motivation of construction engineers. Analyzing the relationships predicted by expectancy theory implied that job clarify is useful to improve the expectancy of engineers even though the expectancy has no strong relationship with effort and performance.
His thesis abstract is copied and posted.
ABSTRACT
Construction industry is the one that drives virtually ever economy. It is needed to provide the infrastructure, plants, industries and houses for the population. For the industry to serve the economy it needs resources. One of the most important and critical resource in construction is manpower. This resource, unlike other resources, is the only one that free will. As a result, it is important for manager of construction to understand the factors that influence construction engineer performance. To motivate construction engineers, it is necessary to know how they respond to their environment and what they need. A survey was developed base on expectancy theory. This survey was conducted in construction industry in HoChiMinh city, Vietnam. The study was carried out to determine the factors that affect the motivation of engineers, for example, physiological (breathing, food, water, sleep,...), safety (security of body, of employee, of health..), belonging (friendship, family, ..), esteem (confident, respect by others, achievement,..), self-actualization (morality, creativity, acceptance of facts,…). Hence, proposing some recommendations to motivate construction engineers working effectively. Further more, this research also specify the validity of the expectancy theory toward motivation of construction engineers in the Vietnam construction industry.
Tuesday 18 August 2009
Financial Management For Small And Medium-Sized Enterprises In Construction: Case Study In Thailand And Indonesia
Southeast Asia is now developing the small and medium sized enterprise which becomes the backbone of the economy of the particular country. In Thailand and Indonesia, construction industry influences the economic growth. The interesting fact is that in Thailand, construction relies more on small and medium-sized enterprises or “SMEs” which construction plays significant role in influencing the GDP of the country. Indonesia has more or less similar circumstances as that in Thailand where small and medium contractors have an important role in process of growth domestic product. As the major part of construction industry in Indonesia, the development of construction SMEs will be essential.
Ms. Vivi Megawati made a case study to understand how the entrepreneurs manage their construction SMEs and the fundamental system they adopt for the financial management.
Her study mainly aims to investigate and assess operational factors that affecting the financial capability of the Construction Small and Medium-sized Enterprises. Identifying the key operational point will help the construction SMEs to enhance their financial capability. To accomplish her study’s the main objective, she outlined three sub-objectives to (1) identify key operational parameters affecting financial management in construction SMEs; (2) investigate the existing financial management practices affecting the financial outcome of construction SMEs; and (3) propose recommendation for financial management that are appropriate for construction SMEs in handling with the key operational parameters
Her conclusions based on the result of her survey.
1. Financial management in construction SMEs - it is found that construction SMEs is vulnerable to financial crisis due to the misconduct of financial management. Improper management practices have brought some construction SMEs to financial difficulties and even bankruptcy. It is can actually be avoided through appropriate financial management according to the character of construction SMEs itself.
2. Indonesian and Thai SMEs practice in financial management - construction SMEs both in Indonesia and Thailand exhibit the misconduct in financial management. However, some companies involved in the study are seen to have adequate financial management to sustain the business. The size of the firm usually determines the properness of financial management although in some parts, decision maker structure does.
Her recommendations for Thai and Indonesian construction SME owners in managing the financial management in securing long-term competitiveness are the following:
1. Thai SMEs can consider decentralization in purchase authority to expand the business since centralized purchase authority is cumbersome for some extent. Decentralization allows prompt purchasing which can affect the productivity especially when the size of the project is big.
2. Indonesian SMEs can be more professional in financial management. If the company wants to expand the business, Indonesian SMEs can raise long term debt for higher capital to be able to bid higher project.
3. Improve inventory management. The construction SMEs must properly and promptly update and record any changes made in inventory especially in balance sheet. Stock card may become the good instrument to monitor the flow of inventory. Depreciation can be applied to formalize all the inventory purchasing made by the company. For the second-hand equipment which is usually used until it has no salvage value, the depreciation can still be applied to the value of zero.
4. Construction SMEs must have good and competent estimators. Without the owners involvement in the technical operation (as estimator or project manager) it is necessary to have good and competent estimator which is accompanied by project manager or site manager for more accurate estimation.
5. Construction SMEs must consider other ratio analysis. Bank as the loan provider examine the company based on their financial performance shown in their financial ratios. Thus it is necessary for the owners or managers to recognize the important ratio analysis such as liquidity ratio, Debt/Equity ratio and debt service coverage ratio (DSCR) which is produced from reliable and exact financial statement. It will help construction SMEs to get access to loan from formal sources.
Her thesis abstract is copied and posted.
ABSTRACT
Construction SMEs are the backbone of the construction industry both in Indonesia and in Thailand. However, the management is seldom maintained properly to achieve the optimal outcome. The study focused on the financial management of construction SMEs which affect the whole operational and determine the success of the firms. The study aims to investigate the financial factors and the interrelation between each factor which influence the financial outcome and financial capability and recommend the effective operational method for financial management.
The study uses case study as a research design. The processes begin with factor identification which consists of preliminary factor and verification of the factors. It is the continued with the data collection using the abovementioned factors to design the case study question. Data analysis is conducted toward the evidences using explanation building method in which all the important evidences are revealed and explained.
Results from factor identification shows that financial function in construction SMEs can be divided into four major parts namely: 1) money management, 2) accounting, 3) financial controlling and 4) financial advisory. The money management itself is the integration of three sub-parts: financing decision, working capital management, and investment decision. Accounting consists of recording and reporting process. Financial controlling concern both project and organization financial control. Eventually, financial advisory concern the advisory process which base the decision taken within the company regarding financial control system, dividend and retained earnings, income diversification, and tax planning. The framework shows the interrelation between each factor is developed. The causes, consequences, and recommendation for handling with all the factors mentioned above were discussed in this study.
Ms. Vivi Megawati made a case study to understand how the entrepreneurs manage their construction SMEs and the fundamental system they adopt for the financial management.
Her study mainly aims to investigate and assess operational factors that affecting the financial capability of the Construction Small and Medium-sized Enterprises. Identifying the key operational point will help the construction SMEs to enhance their financial capability. To accomplish her study’s the main objective, she outlined three sub-objectives to (1) identify key operational parameters affecting financial management in construction SMEs; (2) investigate the existing financial management practices affecting the financial outcome of construction SMEs; and (3) propose recommendation for financial management that are appropriate for construction SMEs in handling with the key operational parameters
Her conclusions based on the result of her survey.
1. Financial management in construction SMEs - it is found that construction SMEs is vulnerable to financial crisis due to the misconduct of financial management. Improper management practices have brought some construction SMEs to financial difficulties and even bankruptcy. It is can actually be avoided through appropriate financial management according to the character of construction SMEs itself.
2. Indonesian and Thai SMEs practice in financial management - construction SMEs both in Indonesia and Thailand exhibit the misconduct in financial management. However, some companies involved in the study are seen to have adequate financial management to sustain the business. The size of the firm usually determines the properness of financial management although in some parts, decision maker structure does.
Her recommendations for Thai and Indonesian construction SME owners in managing the financial management in securing long-term competitiveness are the following:
1. Thai SMEs can consider decentralization in purchase authority to expand the business since centralized purchase authority is cumbersome for some extent. Decentralization allows prompt purchasing which can affect the productivity especially when the size of the project is big.
2. Indonesian SMEs can be more professional in financial management. If the company wants to expand the business, Indonesian SMEs can raise long term debt for higher capital to be able to bid higher project.
3. Improve inventory management. The construction SMEs must properly and promptly update and record any changes made in inventory especially in balance sheet. Stock card may become the good instrument to monitor the flow of inventory. Depreciation can be applied to formalize all the inventory purchasing made by the company. For the second-hand equipment which is usually used until it has no salvage value, the depreciation can still be applied to the value of zero.
4. Construction SMEs must have good and competent estimators. Without the owners involvement in the technical operation (as estimator or project manager) it is necessary to have good and competent estimator which is accompanied by project manager or site manager for more accurate estimation.
5. Construction SMEs must consider other ratio analysis. Bank as the loan provider examine the company based on their financial performance shown in their financial ratios. Thus it is necessary for the owners or managers to recognize the important ratio analysis such as liquidity ratio, Debt/Equity ratio and debt service coverage ratio (DSCR) which is produced from reliable and exact financial statement. It will help construction SMEs to get access to loan from formal sources.
Her thesis abstract is copied and posted.
ABSTRACT
Construction SMEs are the backbone of the construction industry both in Indonesia and in Thailand. However, the management is seldom maintained properly to achieve the optimal outcome. The study focused on the financial management of construction SMEs which affect the whole operational and determine the success of the firms. The study aims to investigate the financial factors and the interrelation between each factor which influence the financial outcome and financial capability and recommend the effective operational method for financial management.
The study uses case study as a research design. The processes begin with factor identification which consists of preliminary factor and verification of the factors. It is the continued with the data collection using the abovementioned factors to design the case study question. Data analysis is conducted toward the evidences using explanation building method in which all the important evidences are revealed and explained.
Results from factor identification shows that financial function in construction SMEs can be divided into four major parts namely: 1) money management, 2) accounting, 3) financial controlling and 4) financial advisory. The money management itself is the integration of three sub-parts: financing decision, working capital management, and investment decision. Accounting consists of recording and reporting process. Financial controlling concern both project and organization financial control. Eventually, financial advisory concern the advisory process which base the decision taken within the company regarding financial control system, dividend and retained earnings, income diversification, and tax planning. The framework shows the interrelation between each factor is developed. The causes, consequences, and recommendation for handling with all the factors mentioned above were discussed in this study.
Monday 17 August 2009
On Site Cost Control System In Construction Company In Viet Nam: A Case Study Of Three Construction Companies In Ho Chi Minh City
Cost control is conceived to ensure that costs stay in line with the planned needs established by the company to achieve economic targets. Every construction firms needs information about costs in order to plan, evaluate, decide, and budget, among other purposes. The cost control is a process that should be continued through the construction period to ensure that the cost of the building is kept within the agreed cost limits. The cost control can divide into two major areas; the control of cost during design stages and the control of cost by the contractors once the construction of project has started. The main objective of cost control is gaining the maximum profit within the designated period and satisfactory quality of work.
Most of Viet Nam Construction Company have cost control system established by themselves; but the systems are system less and ineffective. Mr. Le Hai Son made a case study on “On Site Cost Control System In Construction Company In Viet Nam: A Case Study Of Three Construction Companies In Ho Chi Minh City” to understand the current practice in their organization and explore what factors are effective or deficient that needs improvement.
His study was carried out to study the cost control method in a construction project, to identify the cost control method frequently used by the contractor during the construction stage and to identify the problem faced in controlling the costs on site. The objectives of his study are (1) to study and understand the current on site cost control system in Vietnamese construction companies; (2) to investigate and identify effectiveness and deficiencies cost control system; the factors caused those effects in relation with measurement identification; and (3) to recommend how to improve the cost control system of company base on the attributes founded.
His study revealed that the common trend in Vietnam Construction Company is that cost control procedure has not been systematized. The organizations have initiated a development plan and only a few of them have successfully established their cost control systems. This shortage, therefore, is a major factor that causes contractors' business failures during the current economic recession period. They used the system designed by themselves and applied for all projects they achieved.
Mr. Le Hai son’s study also revealed that site personnel in the organizations have less participation in cost control. According to the companies' policies, the budget is set and solely approved by head office. Normally, head office doesn't let site personnel know budget and assigned them to control only in term of quantity. As a result, site personnel have no cost-conscious mind and are not motivated to monitor and control cost. For cost analyzing and reporting, the responsibility is taken by accountants who can generate information based on bills and invoices. Certainly, the generated cost information can't reflect the real on-site situation and can't provide great benefits to management to take right and timely corrective actions.
In this case study, most of cost codes system used by the contractor or construction management company is not examined to identify their effectiveness in controlling project costs. Therefore, monitoring of actual expenditures of each work item and monitoring of work progress in comparison with budget and actual cost can't be achieved.
His study found some problems that affect to cost control system of company come from following reasons:
1. Human factors and type of training cost engineers –Viet Nam does not have professional estimators, hence construction management on cost control had not yet assessed appropriately. Training mission to provide engineers and expert in this field had not yet considered important.
2. Estimate norm - Viet Nam has many norm systems, but they are deficient, inadequate and complicated. Many construction works in norm are not appropriate with reality leading cost management, setting up estimate, verifying, approving and executing have difficulties during last period.
3. Material calculation method - it is necessary to have a regulation that stipulate adequate real cost, it can be considered that we can follow the announcement from prestige supplier; therefore we can compare and chose.
4. Labor cost calculation- each province has different comprehension and calculation method about labor cost and caused difficulty in establishing and managing the cost.
5. Treat inflation for construction buildings- the internal and international market price have powerful fluctuation.
6. Reserve expenditures for building construction -With the regulation for reserve cost about fifteen percentages “for feasibility study” for both inflation and quantity are not appropriate. Modification of the project, additional cost and efficiency investment can not avoid and the difficulties with investment project from capital sources will increase.
His thesis abstract is copied and posted.
Abstract
In a recent consulting assignment we realized that there was some lack of understanding of the whole system of project cost control, how it is setup and applied. Consulting engineering companies need an adequate cost control system to improve their profitability and productivity. It is important to keep current on a project's cost by maintaining a reliable cost control system. Most of Viet Nam construction companies do not have an appropriate cost control system that can maintaining a reliable cost control system ;enables a contractor to analyze the productivity of workers, the performance and efficiency of equipment, the cost of materials, and the proper allocation of overhead expenses. The goal of this study is surveying current practice about cost control system in Viet Nam construction company and suggestion factors for improving the system. The study was implemented with case study from three different scale companies. For assessing effectiveness and deficiencies, the system from three companies were evaluated by comparing with measure identification propose by Eknarin Sripraset (2000). The survey indicated that most of systems are self design ; in addition there is no integration between code accounting and cost code. These two main factors contribute to the deficiencies of the system and make the company loss severe benefit.
Most of Viet Nam Construction Company have cost control system established by themselves; but the systems are system less and ineffective. Mr. Le Hai Son made a case study on “On Site Cost Control System In Construction Company In Viet Nam: A Case Study Of Three Construction Companies In Ho Chi Minh City” to understand the current practice in their organization and explore what factors are effective or deficient that needs improvement.
His study was carried out to study the cost control method in a construction project, to identify the cost control method frequently used by the contractor during the construction stage and to identify the problem faced in controlling the costs on site. The objectives of his study are (1) to study and understand the current on site cost control system in Vietnamese construction companies; (2) to investigate and identify effectiveness and deficiencies cost control system; the factors caused those effects in relation with measurement identification; and (3) to recommend how to improve the cost control system of company base on the attributes founded.
His study revealed that the common trend in Vietnam Construction Company is that cost control procedure has not been systematized. The organizations have initiated a development plan and only a few of them have successfully established their cost control systems. This shortage, therefore, is a major factor that causes contractors' business failures during the current economic recession period. They used the system designed by themselves and applied for all projects they achieved.
Mr. Le Hai son’s study also revealed that site personnel in the organizations have less participation in cost control. According to the companies' policies, the budget is set and solely approved by head office. Normally, head office doesn't let site personnel know budget and assigned them to control only in term of quantity. As a result, site personnel have no cost-conscious mind and are not motivated to monitor and control cost. For cost analyzing and reporting, the responsibility is taken by accountants who can generate information based on bills and invoices. Certainly, the generated cost information can't reflect the real on-site situation and can't provide great benefits to management to take right and timely corrective actions.
In this case study, most of cost codes system used by the contractor or construction management company is not examined to identify their effectiveness in controlling project costs. Therefore, monitoring of actual expenditures of each work item and monitoring of work progress in comparison with budget and actual cost can't be achieved.
His study found some problems that affect to cost control system of company come from following reasons:
1. Human factors and type of training cost engineers –Viet Nam does not have professional estimators, hence construction management on cost control had not yet assessed appropriately. Training mission to provide engineers and expert in this field had not yet considered important.
2. Estimate norm - Viet Nam has many norm systems, but they are deficient, inadequate and complicated. Many construction works in norm are not appropriate with reality leading cost management, setting up estimate, verifying, approving and executing have difficulties during last period.
3. Material calculation method - it is necessary to have a regulation that stipulate adequate real cost, it can be considered that we can follow the announcement from prestige supplier; therefore we can compare and chose.
4. Labor cost calculation- each province has different comprehension and calculation method about labor cost and caused difficulty in establishing and managing the cost.
5. Treat inflation for construction buildings- the internal and international market price have powerful fluctuation.
6. Reserve expenditures for building construction -With the regulation for reserve cost about fifteen percentages “for feasibility study” for both inflation and quantity are not appropriate. Modification of the project, additional cost and efficiency investment can not avoid and the difficulties with investment project from capital sources will increase.
His thesis abstract is copied and posted.
Abstract
In a recent consulting assignment we realized that there was some lack of understanding of the whole system of project cost control, how it is setup and applied. Consulting engineering companies need an adequate cost control system to improve their profitability and productivity. It is important to keep current on a project's cost by maintaining a reliable cost control system. Most of Viet Nam construction companies do not have an appropriate cost control system that can maintaining a reliable cost control system ;enables a contractor to analyze the productivity of workers, the performance and efficiency of equipment, the cost of materials, and the proper allocation of overhead expenses. The goal of this study is surveying current practice about cost control system in Viet Nam construction company and suggestion factors for improving the system. The study was implemented with case study from three different scale companies. For assessing effectiveness and deficiencies, the system from three companies were evaluated by comparing with measure identification propose by Eknarin Sripraset (2000). The survey indicated that most of systems are self design ; in addition there is no integration between code accounting and cost code. These two main factors contribute to the deficiencies of the system and make the company loss severe benefit.
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