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Mba viva slides (scm009432) (1)


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Mba viva slides (scm009432) (1)

  1. 1. Student: Ang Tze Wei (SCM-009432) Supervisor: Dr David Goh May 2014 MBA(GM) Viva Topic: “Challenges and Success Factors of Project Management (PM) Services in Malaysia Construction Industry”
  2. 2. Contents 1) Chapter 1: Introduction & Background of Research 2) Chapter 2: Literature Review 3) Chapter 3: Research Methodology 4) Chapter 4: Data Analysis 5) Chapter 5: Conclusions and Recommendations List of References
  3. 3. 1) Introduction & Background  In the past, there are number of construction projects in Malaysia which is not completed in time, not up to industry standard and have quality issues due to poor workmanship (Chan, 2002).  Example of project using PM services and failed is Middle Ring Road with more than 7000 cracks and other quality issues, multiple delays, cost over run and safety issues (The Star, 2008).  As such, effective Project Management (PM) services is crucial in delivering solution to client and achieving the objectives of quality, scope, time, cost, sustainability and safety.
  4. 4. 1) Introduction & Background Research Problem:  What are the challenges and success factors of Project Management Services in Malaysia construction industry? Research Objectives: 1) To identify the roles and responsibilities of PM companies. 2) To determine and analyse the challenges or problems faced by PM Services provided. 3) To identify the success factors of PM services in the construction industry.
  5. 5. 2) Literature Review Malaysia Construction Industry: Snapshot of Malaysia Economy and Construction Sector GDP Construction Sector 15 to 22% of GDP
  6. 6. 2) Literature Review Market Analysis - Malaysia Construction Industry:  Trends and Value of Projects in Malaysia Construction Industry Constructions Projects valued at RM 75 to 95 Billion from 2007 to 2011
  7. 7. 2) Literature Review Construction Industry- Moving Forward (Economic Transformation Plan- ETP): Estimated Total GDV of more than 230 Billion Source: Adapted from The Star (2012, 2013)
  8. 8. 2) Literature Review Justification of the Research:
  9. 9. 2) Literature Review Project Management Theories / Models 1) Project management is the art of directing and coordinating material and human resources throughout the project life span by utilizing various management methods and techniques to achieve effectively predetermined goal of scope, quality, time, cost and participation satisfaction (Dhillon 2002).
  10. 10. 2) Literature Review - 42 Project Management Processes - 9 Knowledge Areas - 5 Process Groups Project Management Processes
  11. 11. 2) Literature Review Comparison Analysis -General Management and Project Management
  12. 12. 2) Literature Review Roles & Responsibilities of PM
  13. 13. 2) Literature Review Benefits of having PM Services: 1) Ensures cost efficiency from overall project implementation to completion 2) Saves cost by implementing value management and re-engineering 3) Ensures project are completed on-time or ahead of project schedule 4) Ensures project are completed without compromising quality and safety 5) Ensures projects are implemented in a sustainable nature
  14. 14. 2) Literature Review PM Services Globally:  PM companies and Project Management Consultancy (PMC) services have been widely used in other countries such as US, UK and Australia for more than 30 years (Sugata and Daryl, 2002).  Lend Lease which is founded in 1973 based in Australia with more than 30 years establishment has the core business in property management services, project management, consultancy and construction (Lend Lease 2011).  In China, PM services or CS (Construction Supervision) was introduced to improve project quality, minimize cost overruns and time delays (Ministry of Construction, 1996). PM Services Malaysia:  Lend Lease has completed more than 100 projects in Malaysia. Major references are the development of the 88-storey twin towers, one of the world’s tallest buildings when completed in 1996 (Lend Lease, 2011).
  15. 15. 2) Literature Review Challenges of Construction Industry in Malaysia: 1) Construction Industry are fragmented- Different activities by different parties undertaken in isolation. No single party with expertise, skills and capabilities 2) Labor Intensive and dependency on foreign workers- No automated process 3) Industry Image- Tarnished due to non-performing contractors 4) Payment Issues- Slow payments and under payments to contractors 5) Client Expectations and Demands- Higher quality, cheaper prices and on- time delivery.
  16. 16. 2) Literature Review Challenges of PM Services in Malaysia: 1) Lack of commitment from clients 2) Lack of knowledge in PM techniques, risk management and financial skills 3) Lack of clear mission of the project 4) Frequent project scope changes 5) Conflicting project objectives 6) Financial Constraints 7) Lack of coordination between team members 8) Lack of relevant and appropriate training 9) Lack of effective way to measure project success and benefits 10) Lack of PM companies resources Source: Adapted from Zayyana Shehu and Akintola Akintoye (2009)
  17. 17. 2) Literature Review Success Factors of PM Services:  Five criteria that can be used to measure project success and the criteria are completed in time, within budget, completed at the desired level of quality, accepted by the customer and resulted in customers allowing the contractor to use them as a reference (Kerzner 1998).  Critical factors that may affect the success of PM projects (Young and Jinjoo 1998):
  18. 18. 3) Research Methodology  Mixed Research Method chosen  A combination of qualitative or inductive and quantitative or deductive approaches can build on the strengths and minimise the weaknesses of both (Steckler, 1992).
  19. 19. 3) Research Methodology  Interviews -Semi structured, involved 2 experts involved with more than 10 years experience in managing construction projects. Data Collection -Qualitative Sample Interview Guide
  20. 20. 3) Research Methodology  Questionnaire survey - 35 participants involved in this self administered survey. 5 point Likert Scale are used for measurement. - Roscoe (1975) suggests that sample size should be larger than 30 and less than 500. - Questionnaires are distributed to professional institutions – CIDB, PAM, MIE and REHDA. Data Collection - Quantitative Sample Questionnaire Survey
  21. 21. 3) Research Methodology - Triangulation are used to improve the quality of this research. - Triangulation means looking at something from multiple points of view in order to improve accuracy (Neuman, 2006). - The convergence of data enhanced the quality of the study (Yin, 2003) Ensuring Quality of Research Triangulation to Improve Accuracy
  22. 22. 3) Research Methodology Research Limitations: 1) Findings, literature review and interviews / interviews are conducted in late 2013 and early 2014. 2) Questionnaire survey are conducted in Klang Valley areas only, due to time and resources constraint 3) Scope of Research :PM services in Malaysia construction industry only 4) Some respondents (especially professional institutions) withdrawn from participation due to the information are regarded as confidential. Voluntary participation is conducted, and ethical considerations are complied.
  23. 23. 4) Data Analysis Interview Analysis with 2 experts -Body of knowledge gained are also used as basis to develop questionnaire survey. Opinions, advise and findings of the 2 experts are summarized as below:  Role of PM Companies Expert 1- To control and coordinate various parties of different expertise such as Architects, Consultants, Contractor and Clients. Expert 2- To manage multiple team of contractors, consultant and work together to resolve issues constructively.  Challenges of PM Services Expert 1- Difficulty in getting precise input and requirement from client. Expert 2- No commitment or full support given by the client or related party.  Success Factor of PM Services Expert 1- PM’s skills, competent and experience. Expert 2- PM’s experience and skills in coordinating parties involved.
  24. 24. 4) Data Analysis Questionnaire Survey - Frequency Analysis & Comparison of Mean Response (SPSS v19) Section A: Demographics Majority Respondents are Consultant Firm (40%) that used PM services in 5 to 10 of their projects (46%).
  25. 25. 4) Data Analysis Section A: Demographics Majority Respondents have 5 to 10 years working experience (43%) and having title of Project Engineer (51%). Questionnaire Survey - Frequency Analysis & Comparison of Mean Response
  26. 26. 4) Data Analysis Questionnaire Survey - Frequency Analysis & Comparison of Mean Response Section B: Role of PM Companies
  27. 27. 4) Data Analysis Section B: Role of PM Companies Two ‘Very Important Role” - Controlling overall project performance - Monitor project major activities and ensures the required target are met Questionnaire Survey - Frequency Analysis & Comparison of Mean Response
  28. 28. 4) Data Analysis Section C: Challenges of PM Services Questionnaire Survey - Frequency Analysis & Comparison of Mean Response
  29. 29. 4) Data Analysis Section C: Challenges of PM Services ‘Significant Challenges” - Lack of qualified, skilled and experienced PM practitioners in the industry - Lack of commitment from client ‘Moderately Significant Challenges” - High cost of adapting PM companies Questionnaire Survey - Frequency Analysis & Comparison of Mean Response
  30. 30. 4) Data Analysis Section D: Success Factor of PM Services Questionnaire Survey - Frequency Analysis & Comparison of Mean Response
  31. 31. 4) Data Analysis Section D: Success Factor of PM Services ‘Very Important Success Factor” - PM companies’ competence and experience Questionnaire Survey - Frequency Analysis & Comparison of Mean Response
  32. 32. 5) Conclusion From the research and findings, the objectives are met and it is concluded that: 1) Most important Role of PM Companies is to monitor project major activities and ensures the required target are met. 2) Most significant Challenges of PM services is lack of qualified, skills and experienced PM practitioners in the industry. 3) Most important Success Factors of PM Services is PM companies’ competency and experience. In order to ensure PM Services are delivered effectively, continuous training, education and awareness program to be conducted locally or abroad.
  33. 33. 5) Recommendations Significance of this Research: 1) Serve as framework and impact on PM practices of Regulatory Bodies such as PAM and CIDB in Malaysia construction industry 2) Framework and guide for PM companies to improve and gained strategic advantage over competitors. 3) Guideline to improve corporate governance in PM Companies and stakeholders of Project Team members 4) Impact on policies to ensure that construction projects are managed, completed on time, within budget, quality and sustainable. Future Research:  The findings of this study will be more accurate if conducted with a larger sample and to cover larger areas in Malaysia to generalize the findings.
  34. 34. List of Reference Chan, I.P.C., Scott, D., Lam, E.W.M., 2002. Framework of success criteria for design/ build projects. Journal of Management in Engineering 18, 120-128. CIDB, 2012. Construction industry development board Malaysia. Construction Statistics, Kuala Lumpur, Malaysia. Charted Institute of Building (CIOB) (1988). "Project Management in Building." United Kingdom (UK), CIOB. Dahlan, A.N. (2009). The Critical Success Factors for Effective Performance of Malaysian Government Linked Companies. Graduate College of Management, Southern Cross University Australia: Unpublished Doctorate Thesis. Dhillon, B.S (2002). “Engineering and Technology Management Tools and Applications.” Boston, London, Artech House. Kerzner H (2009), Project Management: A System Approach to Planning, Scheduling, and Controlling (10th ed), New York. Lend Lease 2011. Available at <> Neuman, WL 2006, Social Research Methods: Qualitative and Quantitative Approaches, Pearson, Allyn and Bacon. Project Management Institute, PMI (2008). “A Guide to the Project Management Body of Knowledge.” Newton Square, USA, Project Management Institute.
  35. 35. List of Reference Roscoe, JT 1975, Fundamental Research Statistics for the Behavioural Sciences, New York: Holt, Rinehart and Winston Inc. Sugata, Biswas and Daryl, Twitchell (2002). "Management Consulting, a complete guide to the industry." 2nd Edition, New York, John Wiley & Sons, Inc. Steckler, A, Mcleroy, KR, Goodman, RM, Bird, ST & McCormick, L 1992, 'Toward Integrating Qualitative and Quantitative Methods: An Introduction', Health Education Quarterly, vol. 19, no. 1, pp. 1-8. The Star 4 August 2008 15 January 2012 23 December 2013 Yin, RK 2003, Case Study Research: Design and Methods, Sage, Thousand Oaks. Young Jang and Jinjoo Lee (1998). "Factor influencing the success of management consulting projects." International Journal of Project Management, Vol. 16, No. 2, pp. 67-72, Great Britain. Zayyana Shehu, Akintola Akintoye (2009), Major challenges to the successful implementation and practice of programme management in the construction environment: A critical analysis, International Journal of Project Management, Vol. 28, pp. 26-39, Great Britain.
  36. 36. Q & A Thank You