Luận Văn Ineffective Project Scheduling And Time Control In Sun Viet.doc

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
NGUYEN ANH KHOA
INEFFECTIVE PROJECT
SCHEDULING AND TIME
CONTROL IN SUN VIET JSC
MASTER OF BUSINESS ADMINISTRATION
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
NGUYEN ANH KHOA
INEFFECTIVE PROJECT
SCHEDULING AND TIME
CONTROL IN SUN VIET JSC
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: Dr. NGUYEN PHONG NGUYEN
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CONTENTS
1. Problem identification .............................................................................................. 6
1.1. Company background ........................................................................................ 6
1.2. Symptom and evidence ...................................................................................... 7
1.3. Qualitative research ........................................................................................... 9
1.4. Initial causes-effect map .................................................................................. 10
1.5. Updated causes-effect map .............................................................................. 14
1.6. Potential central problem ................................................................................. 17
2. Problem justification .............................................................................................. 19
2.1. Problem definition ........................................................................................... 19
2.2. Problem existence ............................................................................................ 21
2.3. Problem consequences ..................................................................................... 22
3. Causes validation .................................................................................................... 24
3.1. List of real causes ............................................................................................ 24
3.2. Final causes-effect map ................................................................................... 27
3.3. Causes evaluation ............................................................................................ 28
4. Alternative solution ................................................................................................ 29
5. Action plan ............................................................................................................. 33
6. Supporting information .......................................................................................... 37
6.1. Interview guide (first interview) ...................................................................... 37
6.2. Summary of finding from qualitative research (first interview) ..................... 38
6.3. Group of causes and variable base on result of interview (first interview) ..... 47
6.4. Analysis the number of time overrun projects in 2017 by factors .................. 48
6.5. Result of SVTECH’s control system measurement ........................................ 48
6.6. Transcript of problem discussion (third interview) ......................................... 50
6.7. Result of causes evaluation ............................................................................. 53
REFERENCES ............................................................................................................ 55
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List of figures
Figure 1. Initial Causes-effect map (source: in-depth interview) ................................ 10
Figure 2. Updated causes-effect map (source: in-depth interview and the above
literatures)..................................................................................................................... 14
Figure 3. Finial causes-effect map (source: in-depth interview and the above literatures)
27
List of table
Table 1. KPI of Company in 2017 (source: SVTECH’s data)....................................... 7
Table 2. Relationship between factors and variables in causes-effect maps (interview
and above literatures) ................................................................................................... 15
Table 3. Result of adding interview (source: second interview).................................. 16
Table 4. Y (time) of project in 2017 (source: SVTECH’s data).................................. 21
Table 5. Y (time) in three year 2015-2017 (source: SVTECH’s data) ........................ 22
Table 6. Percentage of over time cost to revenue in 2015-2017 (source: SVTECH’s data)
24
Table 7. Group of causes (source: literature review)................................................... 25
Table 8. Summarizing of causes evaluation................................................................. 28
Table 9. Summary of finding in first in-depth interview (source: first in-depth interview)
39
Table 10. Group of causes and variable (source: first in-depth interview).................. 47
Table 11. Number of time overrun project summarized by main factors (source:
SVTECH’s data) .......................................................................................................... 48
Table 12. Time in plan and actual time to finish project in 2017 (source: SVTECH’s
data).............................................................................................................................. 48
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EXECUTIVE SUMMARY
SVTECH had problem in deploying project in 2017. The proportion of time overrun
projects and number of delayed day rose significantly. They leaded to complaints from
customers, probability to face with liquidated damages penalty and increase cost because
of overtime cost. More seriously, SVTECH could be lost customers for competitors if the
time overrun project do not be solved. By making interview, literature review and
analyzing the data in 2017, ineffective time control system was found that the central
problem caused to the time overrun project. In order to solve this problem, deeper
interview and study research was done. The result of research and interview defined 7
causes of ineffective time control system, which are classified in 3 groups. These causes
has been validated and evaluated to define the level of important to company. Based on
these causes, alternative solution has been suggested and discussed to find the suitable one
for SVTECH. To make clear for the solution, an action plan was made. This action plan is
expected to help SVTECH improve the time control system and decrease the percentage
of time overrun projects and number of delayed day.
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1. Problem identification
1.1. Company background
- Sun Viet Technology Development JSC (SVTECH) was established in 2001 as
a distributor of Sun Microsystems, which is one of the biggest technological
equipment producers on the world. After 17 years of growth, from 17
employees in 2001 to nearly 200 employees currently, SVTECH has now been
acknowledge as one the three leading System Integration companies with large
scale and complex projects at both national and regional level.
- There are some significant milestone in 17 years of growth of SVTECH:
+ In 2001, Head office in Ho Chi Minh City was established
+ In 2004, be selected as Sun Chanel partner and Hanoi representative office
was opened.
+ In 2006, become partner of Oracle and Celltick.
+ In 2008, Switched to SV technologies JSC and be selected as partner of
Juniper and IBM. In this year, SVTECH also get Honorable Achievement
Award for the best storage server provider in South Asia by Sun Micro system,
+ In 2010, become partner of Hitachi Data System (HDS).
+ In 2012, launched new business categories in Telecom Services and
Integration (TSI) and Managed Service Provider (MSP). SVTECH also become
partner of Symamtec in 2012.
+ In 2013, be partner of Vmware
+ In 2014, be partner of Intel security, Harmonic and achieve Award for the
best Technical Vitality Business partner by 2014.
+ In 2015, achieve Aware for Asean Partner of the year by Juniper, Aware for
Top Big Data nad Analytics by IBM and become partner of HPE.
+ In 2016, honored as the best security and risk management by the Asian
Banker and become partner of NetApp.
- Be partner of the largest technology corporations, SVTECH provide
technological services and solutions to optimize the IT system and enhance
management system performance. SVTECH’s services and solution can be
classified in three main group:
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+ System Integrator, included network infrastructure, security, data, business
analytics, digital enterprise solution…
+ Information and Communication Technologies (ICT), include television, IP
networking, managed services…
+ Cloud computing solution.
+ Besides, to prepare for 4.0 revolution, SVTECH also provides advanced
technologies such as Internet of Thing (IoT) solution, Virtualization,
Geographic information system (GIS) solution.
- SVTECH provide services and solution to local and abroad organizations.
SVTECH customer was divide in to 6 main group:
+ Telecom corporations include: Mobifone, Vinaphone- VNPT, Viettel.
+ Government organizations such as Ministry of Finance, Ministry of
information technology, EVN, Sawaco, etc.
+ Financial and Stock Institution was representative by OCB, MB, ACB,
BIDV, Vietinbank, Sacombank, Prudential, Viet Capital, FE Credit, ect.
+ Oil and Gas Company include PV oil, PVEP, PV trans. Vietso Petro,
Petronas, etc.
+ Education and health organizations such as Can Tho University, RMIT,
National University, Binh Dan Hospita, University of Medicine and Pharmacy
Hospital, ect.
+ Enterprises such as Vinamilk, Vingroup, HTV, SCTV, Big C, Mega Market,
etc.
1.2. Symptom and evidence
- SVTECH built KPI base on Balance Score Card, which includes 4 main
categories: Financial, Customer, Process and Learning and growth, to control the
performance of company. In 2017, there were 4 KPIs was not achieved objective.
They are presented in the below table:
Table 1. KPI of Company in 2017 (source: SVTECH’s data)
KPI Department Target Result Evaluating
Percentage of projects completed on Project
>80% 75% Not achieved
time management
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Percentage of contracts delivered on Logistic-
>80% 72% Not achieved
time Purchase
Percentage of human response HR 100% 83% Not achieved
Percentage of human responded on
HR >70% 68% Not achieved
time
- The KPIs was responsible by HR department was not achieved because of leave
maternity in recruitment team. She came back in March 2018 so the problem
has been solved.
- Two others unachieved KPIs has relationship and they involve to schedule project
control. The result of KPIs show that project schedule was not controlled well,
which was effected by late delivery. For instance, project of X company (company
name has been changed because of SVTECH’s confidential rules) in March 2018
was postponed for 10 days because of late delivery. X is a fastidious customer,
who always strict on time of project. They always set some penalties in contract to
force suppliers comply with time. In order to finish project on time and avoid
punishing from X, engineers in technical department had to work overtime. This
project has finished on time but cost increased significantly.
- Another case, Y company make an order of storage equipment to replace old
system. They have built a plan to postpone working at all branches for system
changing but their products was late delivery so they have to cancel plan and
set a new plan. They had poor complain about SVTECH’s service because it
make their waste a lot of time. They are considering about finding new
suppliers instead of SVTECH for next projects.
- These are only 2 typical cases of 27 time overrun projects and late delivery
orders in 2018. They lead to cost of project in rise significantly in compare with
budget. The amount of cost increase came from paying overtime bonus for
engineers, punishing from contract. The time overrun projects and late delivery
orders also dissatisfy customer and destroy future opportunity. Therefore, the
time overrun project and late delivery should be analyzed and prevented. This
paper will focus on finding the potential problem and root causes which lead to
these consequences and offer an alternative solution and action plan to reduce
the proportion of time overrun projects to total projects.
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1.3. Qualitative research
- Initially, in order to define the potential problem which lead to the late delivery
and time overrun project, a qualitative research has been conducted. In-depth
interview is used to collect depth information about causes of time overrun
project and late delivery from the involve people and the interview was taken
place in meeting room to ensure the private environment. Because one to one
interview method will help respondents felt comfortable and easy to provide
accuracy information.
- Logistic- Purchase department is main responsibility for this KPIs so Logistic-
Purchase Manager was interviewed initially. Besides, Project Management
Department is responsible for connecting other departments and Sales Department
is responsible to contact with customers, so Project Management and Sales
Managers is also need to be interviewed. The in-depth interview was only taken
place with managers because they had enough information about their employees
and they could provide the most fulfill and reliable information. Besides, time of
research is not enough to interview more people, so this paper consider
information from managers is representative for their departments.
- In order to get useful information, an interview guide which provide key
questions to interview has been prepared (see section 6.1) and the interview has
been employed base on this guide. The result of interview was transcript in
section 6.2 and summarized by group of causes and variables in section 6.3.
- After summarizing the interview result, five potential problems, which caused
to time overrun project, has been identified. They were indicated by follow
initial causes- effect map (Figure 1).
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1.4. Initial causes-effect map
Figure 1. Initial Causes-effect map (source: in-depth interview)
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- By summary the interview of Logistic-Purchase manager and Project
Management and Sales manager, there are four main groups of causes lead to
time overrun project:
+ Late product delivery
+ Sale require urgent time which lower than standardization of response time
+ Incident in project
+ Customer delay project
- Firstly, late product delivery is direct causes lead to time overrun project
because engineer could not work without products and equipment. More
specifically, late product delivery was caused by three issues:
+ Logistic-Purchase is overload working, they required to recruit new
employee to reduce workload but HR department could not find suitable
candidate on time because requirements of candidate is high. However, new
employee has been recruited when the research took place and late product
delivery has not been solved. Therefore, it was not the main problem.
+ Sometimes, projects provide new technologies required new products, which
has not been imported before. Therefore, it took time to prepare product
certificates. Requirement of new products could not predicted so Logistic-
Purchase department cannot require a backup time, so it lead to late product
delivery. However, this case was rarely happen and it did not cause to time
overrun project because customers always understand for these cases.
+ Finally, late product delivery happened recently because of complicated orders.
Deploying project need an enormous number of products and equipment, and they
was usually provided by many different suppliers from many different areas on the
world. Therefore, Logistic-Purchase department could receive hundreds of order
for one project. Additionally, these orders was separate by different time and
different contract. While doing A huge number of paper work and too much steps
to complete, Logistic-Purchase department also make many report and updated
schedule of product importing to sale every days so their work was interrupted lead
to low productivity. This problem is defined as main problem with cause to late
product delivery and lead to time overrun project.
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- Secondly, incident in project such as products and system are incompatible, error
in system or software, etc. is also causes of time overrun project. Incident usually
happen with project provide new technologies, and this case was always
understand by customers. However, incidents also caused by delivering wrong
products which was usually lead to time overrun project and was usually complain
from customers. There are some causes lead to delivering wrong product: Sales
misunderstood customer’s requirement, which caused by Sales have not
understood products. Besides, project provide new technologies usually use new
products also a challenge for sales and Purchase- Logistic department and import
wrong product also happen sometimes. Finally, complicated document and
workflow also lead to delivery wrong product because there are too much
document have to check but there was not effective tool to support.
- Thirdly, urgent time requirement from Sales department was one of causes lead
to time overrun project. Sales usually send requirement in urgent case to
engineer and Logistic-Purchase department to satisfy customer. Deadline to
complete project is to urgent so Technology department could not arrange
enough engineer and Logistic-Purchase department also could not import
product on time. There are standardizations about response time for purchasing
and supporting from engineer, but sometimes, Sales tried to persuade
Technology department and Logistic-Purchase department to admit their
requirements because they are pressure by KPIs of revenue so they have to
accept urgent requirement from customers. Another reason is urgent
requirement come from large and important customers, if companies do not
accept their requirements, companies will lose them and future profit. On the
other hand, some sale senior could negotiate with customer about schedule very
well but it’s harder for inexperience sales. Therefore, some Sales whose weak
negotiating skill is the main problem cause to urgent time requirement and lead
to late product delivery and time overrun project.
- Finally, time overrun project is also caused by schedule changing from customer,
which come from customer’s internal problem so they did not complete
infrastructure and delay project start day or they did not pay deposit on time, was
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could not controlled and it also did not cause to drawback to company.
Therefore, research will not focus on this causes.
- By analyzing information from interview and discussion with respondents,
there are four potential problems lead to time overrun project:
+ Complicated document and workflow
+ Sales had weak negotiating skill
+ Project provide new technologies
+ Customer delay project.
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1.5. Updated causes-effect map
Figure 2. Updated causes-effect map (source: in-depth interview and the above literatures)
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- There is almost none study about delay in technology deploying project, but
there are huge number of studies about causes of delay in construction industry.
On the other hand, the process of deploying technology project and
construction project is similar, which include three stages: planning or design,
implementing or building and management (1) and SVTECH’s project also
involve to infrastructure construction. Therefore, the literature about delay in
construction project could be referenced for delay in technology projects to
solve SVTECH’s problem involve to time overrun projects.
- There are many causes lead to time overrun project and they are different between
industries and countries (2), (3), (4). In Ghana, five critical factors lead to time
overrun construction project are: delay in government approvals/permits, delay in
preparation and approval in variation orders, client induced additional work
beyond the original scope, changed engineering conditions from the contract
document and decreased labor productivity due to extreme climatic conditions (5).
While, in Malaysia, main causes of time overrun project defined was: from
contractors; the contractor delay, causes from client, bad consultant, and
environment effects (3). Renuka et al. (2) has studied and summarized the factors
of delay project and dived them into 10 categories: manpower related, material
related, scheduling & control related, environment related, change order, client
related, consultant related, contract related, financial related, external factors.
These factors will be discussed in problem definition section.
- In above factors, manpower, material, scheduling and control, client related
factors was appeared in initial causes-effect maps. They are illustrated by
variables:
Table 2. Relationship between factors and variables in causes-effect maps (interview
and above literatures)
Factors Variable
manpower work overload
material late product delivery
scheduling and control complicated documented and workflow
client related customer delay
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- An adding interview has been performed with Logistic-Purchase manager and
Sale and Project Management manager to define if these factors were existence
in SVTECH or not. Two managers was asked two questions for each factors
environment, consultant, contract, financial and external related:
+ Did SVTECH’s project delay because of X factor?
+ If X factors has caused to time overrun project, how frequently did it happen?
- The result of interview is summarized in below table:
Table 3. Result of adding interview (source: second interview)
Factors
Logistic-Purchase Sale and Project
manager Management manager
environment - Have not happened - Have not happened
related - SVTECH’s project not be -Areawheredeployed
effected by environment. technology is not effected by
environment condition.
consultant Have not been occurred Not related to SVTECH
related
contract - Have not happened - Rarely happened
related - Did not happened in 2017
financial Have never happened Have never happened
related
external - Used to be happened once - Happened sometimes
factors in July 2018 - Change law
- Change law lead to delay - Change technology
products importing and
project
- After adding interview, only external factors were define that involve to
SVTECH’s time overrun project. Two external factors lead to delay project are
change law and change technology. Change technology has been presented by
project provided new technology variable in causes-effect map, so one new
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variable was added to causes-effect maps is change law. Law change required
company to register certificate for new some kind of imported products so it lead
to time of preparing product certificate longer and cause to late product delivery.
- Besides, ineffective scheduling and control project variable also adding to
make clear the reason of late delivery which caused by complicated document
and workflow and lead to time overrun project (1), (6), (7).
- On the other hand, Chitongo (8) found that client project time schedule control
could cause to time overrun project because client require meeting and report
lead to low productivity of project. This point was proved by contract with X
company which is one of SVTECH’s fastidious customers, who always strict
on time of project and always set some penalties in contract to force suppliers
comply with time. Therefore, “to many report” variable is added to causes-
effect maps which lead to complicated document and workflow.
- Totally, there was 3 variables was added to updated causes-effect maps. They
was based on literature and has been confirmed by two managers are:
+ Change law
+ Ineffective scheduling and control
+ Client project time schedule control
1.6. Potential central problem
- After updating causes-effect maps with literature and reconfirmed by 2
managers, there are 3 new variables is added, but only change law and
ineffective scheduling and control are potential problems. Besides, complicated
document and workflow was adjust to be causes. Therefore, there are total 5
potential problems which lead to time overrun project was defined:
+ Ineffective scheduling and control
+ Sales had weak negotiating skill
+ Project provide new technologies
+ Customer delay project
+ Change law
- As discussion in the phase of creating initial causes-effect maps, project delay by
customer requirement do not lead to lost for company because they accept for
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delay project. On the other hands, SVTECH cannot control customer’s internal
activities, if SVTECH try to push customer to complete project on schedule,
SVTECH may be lost customer. Therefore, it is infeasible and unnecessary to
control this causes.
- Base on second data about time overrun project in 2017 (see data at section
6.4), project provide new technologies and change law are rarely happen. There
are only 3 projects which was delayed because of incident when deploying new
technology project and there is only 1 project was delayed because of change
law in the present of 3 years). Besides, these two factors are both external
factors which could not to control so SVTECH have built a risk management
plan to reduce lost in case of change law or provide new technology. For
example, when providing new technology, sales have to ask engineer for time
of project before negotiating with customer. Moreover, engineer have to list
risks may be happened when providing new technology and create at least 2
contingency plans. In processing phase of project, QA Department will
monitors the cost, resource and schedule and remind project members about
deadline. On the other hands, SVTECH added change law to contract as a force
majeure clause from incident of late delivery causes by change law in July
2018. Provide new technologies and change law are being controlled, the
effectiveness of the controlled method will be considered at the end of
December 2018 before creating new plan to control. Therefore, this paper will
not focus on these two problems.
- The lack of skill of Sales team has been recognize in the 2017 Year-end review
meeting and a training plan has been build. The training plan is not only focus
on Sale team but expand to all members in company to improve the employee’s
skills and build up company’s competence from human resource. This causes
are being correcting so this paper will not focus on it.
- In the interview with Purchase-Logistic manger and Sale and Project
Management manager, both two managers claimed that late delivery is the
main causes of time overrun project and complicated document and workflow
is potential problem which lead to late delivery (see section 6.2. Summary of
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finding in first in-depth interview). Truly, about 67% of time overrun projects
in 2017 cause by complicated document and workflow (see section 6.4).
Currently, there is not any effective solution to solving this problem. Purchase-
Logistic, Sale and Project Management Department have suggested to eliminate
some reports and delete some step in their working process. However,
shortening the working process make Board of Directors hard to monitor and
control result of work and create more risk for organization because workflow
are not record to review and evaluate. By these disadvantage, the suggestion
was not approved, so the report and work flow is not changed. By referring
from (2) (3) (4), complicated document and workflow is result of ineffective
scheduling and control. Time, cost, and quality is correlated, an effective
scheduling and control will control these factors to ensure achieved project’s
objective. Therefore, if SVTECH can improve the effectiveness of project
scheduling and control method, they can reduce not only number of time
overrun project but also reduce cost while ensure quality of project.
Consequences, this paper will focus on finding the solution to increase the
effectiveness of scheduling and control method at SVTECH.
2. Problem justification
2.1. Problem definition
- Scheduling and control, which also be called time control system, is one of
three perspective of control system. Control system is responsible for project
management team, they have to monitor process, measure project‘s cost, time
and quality frequently, then report, evaluate actual and planed cost/time (9) and
apply corrective actions to ensure the project complete on time, achieve the
budget and quality requirement (10).
- The effectiveness of control system is based on difference between actual and
plan because the accuracy of planning effect to result of project (10). The
control system is used to measure cost, time and quality, so in order to evaluate
the effectiveness of control system, different between actual and plan of cost,
time and quality should be measured (9). There is a formula which is used
widely to calculate the effectiveness of control system (1), (2), (6), (9):
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( ) = | − |
( ) = | − |
( ) = | − |
- The value of Y (time), Y (cost), Y (quality) is nearer 0, the control system is
better. Which Y value is higher, the control system is more ineffective at that
perspective. However, the acceptance of Y value is different between different
industries and areas (10). For example, acceptance of Y (time) in construction
industry in Western area will be lower than Asian area because Asian country is
fluctuated by government law (3) and change of mind from clients (8). On the
other hand, acceptance of Y (cost) in construction industry will be higher than
technology industry because material of construction industry fluctuated
frequently. Therefore, there is not any standard rate to evaluate the
effectiveness of control system, it depend on characteristic of industry and area.
- Above formula is used to evaluate the effectiveness of control system of each
project. In order to evaluate the effectiveness of control system of a company in
a period, average of Y value and the standard deviation of Y in a period should
be calculated and compared to organization’s standardization (10), (11).
- There is not any statistical data about acceptance or average of Y value in
technology industry in Vietnam. However, by implementing risk management
system, SVTECH has estimated and set the standardization of Y (time) is 5% and
standardization of Y (cost) is 3%. It is hard to measure the level of quality in
technology project, so SVTECH do not set the standardization for Y (quality), the
quality of project will be evaluate base on customer’s requirement. This paper only
focus on measuring the effectiveness of time control system because the main
objective of this paper is solve the time overrun project in SVTECH, cost and
quality control system is out of this paper scope. Besides, it’s hard to collect data
and evaluate the effectiveness of cost and quality control system because data
about project cost is confidential information which only Financial Department
and Board of Directors have permission to access, while measuring
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quality control system need technical basement knowledge and take time to
build and test measurement method. Because above limited permission and
resource, this paper will only focus on time control system.
2.2. Problem existence
- In order to evaluate the effectiveness of time control system of SVTECH, data
about planning time and actual time to finish project has been collected from
Project Management Department (section 6.5). These project’s Y (time) has
been analyzed and indicated in follow table.
Table 4. Y (time) of project in 2017 (source: SVTECH’s data)
Y (time) Number of projects Accumulation Percentage
0% 74 68%
Upper 0%-3% 11 78%
Upper 3%-10% 12 89%
Upper 10%-20% 6 94%
Upper 20% 6 100%
Total 109
Average of Y (time) 3.6%
Standard deviation 8.38%
- Table 4 revealed that only 68% of project has the same planed time and actual
time to finish. In comparison to SVTECH’s standardization of Y (time), there
are only 78% of project has achieved objective while 22% of project had Y
(time) over 3%.
- On the other hand, the average of Y (time) is 3.6%, which is 0.6% higher than
company’s standardization. Besides, the standard deviation of Y (time) is
8.38%, which is twofold the average of Y (time). This number reveals that the
control system is not stable caused by the ability to control time is weak and
cannot control project time.
- Table 5 illustrates Y (time) of project at SVTECH in the period of 3 years from
2015 to 2017. Below table indicates the trend of increase of Y (time) every year,
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but it rose slightly from 1.9% in 2015 to 2.1% in 2016 and they are below the
standardization of Y (time). In 2017, the value of Y (time) increased
significantly to 3.6%, which is 0.8% higher than 2016.
Table 5. Y (time) in three year 2015-2017 (source: SVTECH’s data)
2015 2016 2017
Expected Y (time) 3% 3% 3%
Actual Average of
2.6.% 2.8% 3.6%
Y (time)
Total delayed days 103 days 121 days 466 days
- Data in the period of 2015-2017 in table 5 also demonstrates that total number
of delayed days also rose annually. It increased nearly 20% from 103 days in
2015 to 121 days in 2016 then rocketed to 466 days in 2017. The number of
delays days in 2017 is approximately fourfold in 2016 and over double the total
number of delayed days in 2 year 2015 and 2016.These number reveals that
company’s control system are ineffective in time control.
- After collecting data from project management team, an interview with project
management manager was deployed to confirm about the existence of problem.
The interview was only deployed with project management manager because the
problem is project control system, which involve directly to project management
team, so other team or department will not have trustable information. Besides,
time of research is limited and project management manager will have enough
information from other team members so he was chosen to be interviewed. The
content of interview transcript was showed in section 6.6.
- In third interview, project management manager agreed that control system is
ineffective working and they lead to time overrun project. His team has been cut
down bonus last year because KPIs was not achieved. Therefore, project control
system is confirmed that is working effectively and should be controlled.
2.3. Problem consequences
- Infective project control system lead to time overrun project and force company
to liquidated damages penalty from customer (8). When liquidated damages
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penalty happen, project cost was increase because of amount of money will
spend for penalty. Besides cost, company also lose the trust of customer, which
make customer make more rule to boost the time such as requirement of more
report, meeting (8). In more serious case, customer will cancel the business
relationship with company and choose another partner (10). This is huge lost
for any company when they lose customer for competitors.
- On the other perspective, project control system is responsible for connecting
departments in company (8), (10), (11), so if project control system work
ineffectively, information communicating in company will be effected. As the
result, the internal conflict also happened because unclear information and
responsibly (10). As consequences, company resource such as human resource
and finance is wasted or use inefficiently.
- Summarizing, there are 4 main consequences of ineffective project control
system is defined through above studies:
+ Financial affect: increase cost and lose profit
+ Development affect: decrease customer’s satisfaction or lose customer
+ Company culture affect: create conflict between departments
+ Operating affect: waste resource or use resource inefficiently.
- In above four consequences, financial and development affect are occurred and
proved in section 1.2 and first interview. In contract with customer X, there
wasn’t any liquidated damages penalty was happen but the cost of project
increase 10% because of paying for overtime working. This was also one of ten
biggest projects in 2017, so the profit of company was decrease sharply in
comparison to planning. On the other case, customer Y’s complain is proved
for above second consequence. They also intent to find new partner if we are
overtime in next project which deployed in 2018. There are also other
customer’s complain and increase of project cost for 29 time overrun project, X
and Y customers was 2 typical case because they are two of company’s strategy
customers.
- The conflict between departments has not been happened at SVTECH but
ineffective time control system leaded to waste resource and use resource
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inefficiently. The evidence was the increase of over time cost in below table.
The percentage rose 1% from 1.5% to 2.5% in 2017. The reason caused by
ineffective time control system, engineer had to work over time to catch the
deadline while they were free on previous days.
Table 6. Percentage of overtime cost to revenue in 2015-2017 (source:
SVTECH’s data)
2015 2016 2017
Percentage of overtime cost to revenue 1.5% 1.5% 2.5%
3. Causes validation
3.1. List of real causes
- Time control system is critical factor effect to life cycle of the project (2), so it
is key factor to achieve project objectives (12). In order to evaluate the
effectiveness of time control system, two aspects should be considered are the
capability for assigning personnel and the deviation occurs in projects scope
(2). If firm is not willing to pay for highly skilled staff, project could be delay
because of following reason (2): lack of management personnel, lack of
training personnel, improper estimating skills. On the other hands, change of
project scope effect to Scheduling and control through following factors (2):
change orders and reworks, lack of conceptual stage, management support to
model, operation, monitoring of projects, change of contractors and
subcontractors, preparation of scheduling networks, revisions by client.
- In another study, (7) researched about the factor effect to delay of project and
they defined that ineffective scheduling and control, which is one of the most
important factor effect on time plan of project, is caused by 4 reason: lacking
experience of project management team, lacking detail of plan, don’t updating
plan frequently, change requirement of clients.
- On the other perspective, (8) considered the effect of project management team
behavior on the project control system. Because project management team is
center department, who communicate to connect related departments and
customer, so their behavior and communication will lead to result of project.
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Focus on information communication, (10) suggest that inefficient information
record and analysis lead to lack of or delay access to information about project
progress and this is main reason for ineffective control system.
- (9) summarized the causes lead to ineffective control system are knowledge,
skill and experience of project management team, statistical measurement
method, risk identify ability. Another factor was added by (12): poor
communication, lack of effective leadership and project team behaviors.
- Summarizing from above studies, there are three groups of causes lead to
ineffective time control system was listed in below table:
Table 7. Group of causes (source: literature review)
Group of causes Detail of causes
1. Qualification of 1.1 Lack of control system knowledge
project management 1.2 Weak skill to negotiate with customer and control
team time of suppliers.
1.3 Lack of experience to solve the changing in
project and incurred problems
1.4. Weakness at risk identify and control
2. Project document 2.1. Not define clearly project scope, responsibility of
project members.
2.2. Not accuracy and detail time plan
2.3. Don’t record project progress and update project
plan frequently
3. Inefficient control 3.1. Ineffective information measurement and
method analysis
3.2. Ineffective information communication
- In order to define which above causes impact on time control system at
SVTECH, the interview was deployed with project management manager (see
transcripts at section 6.6). The causes he recognized involve to lack of control
system knowledge, weak skill to negotiate with customer and control time of
suppliers and ineffective information communication. From interview’s clue, he
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confirm about weakness at risk identify and control of project management team,
not clearly project scope, responsibility of project members and not accuracy and
detail time plan, and ineffective information measurement and analysis.
- Finally, there are 7 causes lead to ineffective time control system at SVTECH,
which is classified in 3 groups below:
+ Causes in qualification of project management team:
 Lack of control system knowledge

 Weak skill to negotiate with customer and control time of suppliers

 Weak ability to identify and control risk of project

+ Causes in project document record:
 Define project scope and responsibility of project member is not clear

 Estimate the time line is not accuracy and detail

+ Causes in control method:
 Ineffective information measurement and analysis

 Ineffective information communication

- Base on problem consequences in section 2.3 and above real causes, final
causes-effect map was created in next section.
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3.2. Final causes-effect map
Figure 3. Finial causes-effect map (source: in-depth interview and the above
literatures)
- Above causes-effect map described the results of research about the time overrun
project at SVTECH Company. Through literature review and in-depth interview
related persons, ineffective scheduling and time control is the central problem lead
to late product delivery and time overrun project. The validated consequences of
ineffective scheduling and time control and time overrun project are increase
project cost and lost company’s profit, they also make customer reduce satisfaction
and may lead to lose these customers for competitors. Beside, ineffective
scheduling and time control also impact on internal operating which make hard for
arrange human resource and waste company’s resource.
- In order to solve this central problem, caused has been studied from literature
and confirmed. There are 7 causes and they are classified in 3 groups. First
group involve to project management team, they are lack of knowledge and
skill to adapt to work, they also are not responsible for risk identify, which is
one of important responsibility of project management team. Secondly, project
document is not recording clearly such as scope and responsibility. Besides, the
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plan is not accuracy and detail. Finally, measurement and analysis method and
communication method is not efficient.
3.3. Causes evaluation
- In order to choose suitable solution to solve the central problem, 7 causes was
evaluated base on 3 criteria:
+ Ability to control
+ Ability to measure improving
+ Benefit when causes is solve.
- A survey was deployed to evaluate 7 causes based on above criteria, respondents
are Sale and Project Management manager, Purchase-logistic manger, HR
manager, Quality Assurance manager and Chief of Operating. Sale and Project
Management manager, Purchase-logistic manger is responsibility for this central
problem so their evaluation about the causes should be survey. Besides, Human
resource manager, Quality Assurance manager and Chief Operating Officer was
also survey because they involve to causes. For example, causes in project
management team is related to employee competency so HR manager’s view is
necessary, while causes in project document and project control method is a part of
process management and it is charged by Quality Assurance manager. Finally,
Chief Operating Officer‘s evaluation is necessary because she have the general
view and give the best comparison between the causes.
- Each causes was evaluated by 5 point likert-scale, with 1 is very hard to
control/ measure and very low benefit and 5 is very easy to control/ measure
and very high benefit (based on 3 criteria). The result was showed in section
6.7, the summarize of survey was indicated in below table:
Table 8. Summarizing of causes evaluation
Causes
Average point
Control Measure Benefit
Lack of control system knowledge 4 3.6 3
Weak skill to negotiate with customer and control
time of suppliers
3.4 2.4 3.4
Weak ability to identify and control risk of project 2.6 3 4.8
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Define project scope and responsibility of project
member is not clear
3.2 3.8 2.2
Estimate the time line is not accuracy and detail 3.2 4.4 4
Ineffective information measurement and analysis 3.4 3 4.8
Ineffective information communication 2.6 2.2 3
- By evaluating causes, improving information measurement and analysis and
ability to identify and control risk of project are expected to bring highest
benefit for company. However, these causes is not easy to measure the result of
improving. Additionally, information measurement and analysis is considered
that easier to control than identify and control risk of project. As the result,
these two causes would be considered to solve first.
- Besides, making the time line of project become more accuracy and detail is
also expected to get high benefit while the result of this solution is easier to
measure. This cause also should be considered to solve.
- Remain causes was evaluated that was low benefit in case of improving and the
result is not easy to measure.
4. Alternative solution
- In order to improve the performance of project control system, the most important
factor is project management team (12). Project management members must have
ability to monitor and control project activities in both planning and operating
phases (9), (12). They must estimate and setting out a project plan with risk
forecasting, monitoring the project progress, measuring the time, cost and quality
through the process deploying. If there is incorrect, delayed, or occurred issues,
they need to make corrective action to adjust on time (10) (12). Therefore, project
management members must be always ready with knowledge, skill and method to
control project efficiently. However, project management members at SVTECH
was not enough essential knowledge, skill, so the solution is focus on fulfill the
knowledge, skill and new project management method for project management
team to enhance their ability in project control.
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- However, the number of projects is increase every year, so they must keep on
their business while attending to training course. If company support for project
management team to attend to project management course, they will not be
effective because they usually have business trip and cannot attend class
frequently. Additionally, the knowledge and skill in project management course
may not suitable with working at SVTECH. After courses, the benefit from
useful knowledge is less than the cost of class, which is proved by project
management members who attend these kind of class.
- Therefore, in order to help project management team enhance their knowledge
but don’t delayed their work, company will hire an expert of project
management in role of temporary deputy project management manager in 6
months. He will work with project management team. He will be responsibility
to hold training course for project management team to update new knowledge
about project management system and useful skill to project control. Besides,
he also approach the company’s project control method to evaluate and suggest
the new method or tool to improve project measurement and analysis method.
- There are some benefit of hiring consultant about project management. Firstly,
he can arrange time to hold training course to project team member depend on
work schedule. He also companion with project management team to help with
their problem, skill and experience of project management members will be
improved day by day. Secondly, he join in project work flow so he can
recognize the potential weakness or issues and help project team to improve. It
is really more realistic and effective than knowledge from out site training
courses. This solution can solve the causes in project manage team, project
document also and one causes in control method. Finally, cost for a consultant
is equal to cost for all members of project management team attend out site
course but the benefit is lower. On the other hand, the cost for hire consultant in
6 month will be lower than recruit a new deputy project management manage
while the responsibilities is the same. Moreover, if the capacity of project
management team enhance, they can control project well and deputy project
management manage position is not necessary.
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- Beside above benefit, hire temporary deputy project management manager also
have some potential issues. Firstly, he only work for 6 months to training
project management team and provide method to improve measuring and
analysis, but he could access to the company’s information system which are
confidential and so important to company. If company’s information lost, it
will effect on activities and customer’s trust. Company could control
consultant’s access right and also require him to sign agreement to keep secret
about confidential information. However, the confidential information lost or
published is a risk should be considered. Besides, the consultant will hold the
training course and suggest for improving measuring and analysis, so the
consultant’s qualification is critical factor which effect on the project
management member’s knowledge and skill and the efficiency of new control
system. If company hire incapable or incompatible consultant, the improving
plan will be defeated. Therefore, finding consultant is the most important step.
- Another solution is use technology for working. Company will apply
technology management system, such as ERP, CRM, ECM, BPM, to help
project management team can make plan more accuracy and detail, update
project information easily and the management system will measure and
analysis the information automatically based on input data. Therefore, project
management team will cut down the paper work and they only focus on control
the project activities. In order to enhance project management team‘s
qualification, company will hire out-site trainer to hold the project management
course in company location. The course will update project management
knowledge, train essential skill and especially provide risk control method for
project management. Additionally, company should study and implement ISO
31000, which is international standard about risk management in organization,
to increase the effectiveness of current risk management system.
- The second solution have more and longer benefit. Firstly, it can prevent the risk
of lost and publishing confidential information because there is not any external
people access to company’s information system. Secondly, project management
team could work more efficiently with support from technology system. They do
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not have to measure, analysis and report, so they spend their time for project
control and risk control more effectively. As the result, by second solution,
company could solve all the causes lead to the ineffective time control system.
- Although technology management system has many benefit, there also some
disadvantage if implementing this solution. This solution change the method of
working in company so it could be make some confusing for unadaptable
employees. However, this is only the initial phase. Other company are
implementing technology in their business, SVTECH is a technological company
so all employees should be changed for new things and project management team
will be the first department approach to technology management system. On the
other hand, cost for this solution is much higher than cost for hire consultant.
While contract for consultant in 6 month cost about 1 billion VND, the cost of
technology management system is about 5 billion VND. However, cost is valuable
for a change. Technology management system change the method of document
and information storage, it save money for hard copy and filing cabinets. They also
help employees cut down paper work and increase efficient of working. By
technology management system, manager is easy to view the work progress and
forecast risk more accuracy. Totally, technology management system could help to
reduce cost for document and information storage, cut down risk cost, and increase
competency. Therefore, the second solution is more benefit and should be
considered.
- The budget of the second solution was indicated in below table:
Description Budget (unit: VND)
3 courses about project management for 5 150,000,000
members of project management team
Imply ISO 31000 and auditing to get ISO 100,000,000
31000 certificate
Imply technical management system to 5,000,000,000
project management (ERP, ECM or BPM)
Total 5,250,000,000
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- When SVTECH imply second solution, Y (time) is expected to decrease to
1.5%, which mean different between planning time and actual time will fell to
1.5%. Therefore, SVTECH do not need to recruit new employee for project
management team and will cut down VND 240,000,000 every year in next 3-
year for new member. Total cost will be cut down is VND 720,000,000.
- Additionally, percentage of overtime cost to revenue is expected to drop from
2.5% to 1.5% because project management team can arrange project schedule
more effective. SVTECH’s average revenue on next 3-years is forecasted about
VND 3,5000 billion, so overtime cost will be saved is about VND 35 billion
every year. The total overtime cost will be saved is VND 105 billion.
- To sum up, by cost of VND 5.25 billion for second solution, SVTECH could
save total VND 105.72 billion for employee and overtime cost.
5. Action plan
- The action plan was made base on the second solution. There are three
objectives which this plan need to achieve:
+ Project management team have knowledge about modern project management
+ Project management team can use risk management method in project
management.
+ Technology management system is implemented to Project management team
- Time to deploy: from 01/01/2019 to 30/09/2019
- Responsibility:
+ Lead of action: Quality Assurance department
+ Training function: Human Resource department
+ Technical function: Technical department
+ Testing and Evaluation function: Project Management department.
- Report to board of director: end of each phase
- Detail action plan is reveal in below table:
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No Actions Time Responsibilities
Objective 1: Project management team have knowledge about modern project management
1.1
Choose essential knowledge and skill will be trained for
01/01/2019-15/01/2019
Project management manager
project management team Human resource
1.2 Find trainer and make training plan, estimated cost 01/02/2019-01/03/2019 Human resource department
1.3
Send training plan and estimated cost to Board of
01/03/2019-07/03/2019 Human resource manager
Director for approving
1.4
Revise the training plan and estimated cost base on
07/03/2019-15/03/2019 Human resource department
feedback from Board of Director
1.5
Arrange training courses for project management team
15/03/2019-31/08/2019
Human resource department
base on their schedule Project management team
1.6
Evaluate the improving of project management team by
01 month after each course Human resource department
examination or result of work
1.7 Report the result of evaluating to Board of Director 01/10/2019-15/10/2019 Human resource manager
Objective 2: Project management team can use risk management method in project management
2.1 Study about ISO 31000 01/01/2019-31/01/2019 Quality Assurance department
2.2
Make plan to implement ISO 31000 to project
01/02/2019-15/02/2019 Quality Assurance manager
management
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2.3
Send implementing plan to Board of Director for
approving
2.4
Revise the training plan and estimated cost base on
feedback from Board of Director
2.5 Write document guide and form to manage risk 01/03/2019-30/04/2019 Quality Assurance department
2.6
Arrange train knowledge about ISO 31000 and method
01/05/2019-31/05/2019
Quality Assurance department
to manage risk Project management team
2.7
Internal audit for effectiveness of implementing ISO
01/06/2019-15/06/2019
Quality Assurance department
31000 Project management team
2.8 Report the result of Internal audit to Board of Director 15/06/2019-30/06/2019 Quality Assurance manager
2.9 Correct the non-conformity event from internal audit 15/06/2019-15/08/2019 Project management team
Find external audit organization and sign contract to
2.10 audit and certificate about risk management satisfy the 01/07/2019-15/07/2019 Project management team
ISO 31000
2.11
External audit to certificate implementing ISO 31000
01/08/2019-15/08/2019
External audit organization
Project management team
2.12 Correct the non-conformity event from external audit 15/08/2019-15/09/2019 Project management team
2.13 Certificate implementing ISO 31000 15/09/2019-30/09/2019 External audit organization
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Objective 3: Technology management system is implemented to Project management team
3.1 Find supplier to deploy Project management team 01/01/2018-31/01/2018 Technical department
3.2 Make evaluation of suppliers 01/02/2019-15/02/2019 Technical department
3.3 Send evaluation to Board of Direct for approving 15/02/2019-22/02/2019 Technical department
3.4 Sign contract with suppliers 22/02/2019-28/02/2019 Technical department
3.5
Design and revise technology management system
28/02/2019-30/06/2019
Supplier
Project management team
Train project management team how to use the Supplier
3.6 technology management system and train technical 01/07/2019-15/07/2019 Project management team
department how to manage the system Technical department
3.7 Practice and test with technology management system 15/07/2019-15/08/2019 Project management team
3.8 Revise technology management system and fix error 15/08/2019-15/09/2019 Supplier
3.9 Input project data into technology management system 15/09/2019-30/09/2019 Technical department
3.10
Evaluate the effectiveness of technology management
01/10/2019-15/10/2019 Project management manager
system on project control system
3.11 Report the result for Board of director 15/10/2019-30/10/2019 Project management manager
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- After finish, solution and action plan was sent to Sale and Project Management
manager, Purchase-logistic manger, and Chief of Operating for evaluation.
Their feedback was transcript in below table:
Feedback on solution Feedback on action plan
Sale and Project This solution is feasibility. It Action plan is clear, but
Management could solve our current schedule need more time for all
manager problem in Project department could adopt with
management team. I think new system
sale team also need to attend
some course to improve their
skills.
Purchase-logistic Wonderful solution. If we Action plan is good, but I think
manger can imply technical purchase-logistic department
management system, not also need to attend project
only project management management course to control
team but purchase-logistic purchasing time more
department also cut down accuracy
many paper-work steps and
increase productivity
Chief of Operating This solution could be We need a project team to
for evaluation considered. Financial imply this solution. Team
department will make a leader will review the action
report about cost and benefit plan and choose suitable
of this solution before we member for project team.
imply this solution
6. Supporting information
6.1. Interview guide (first interview)
- Respondents: members of Logistic-Purchase Department, Sale Department and
Project Management Department.
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- Sample of question interview:
Hello, I’m Khoa. I’m doing research aim to find the causes and solve the problem
about time overrun project in our company, information from interview will be
confidential.
Q0: Could you introduce about yourself? (Such as: name, position, responsibilities)
Q1: Do you know that KPIs about “percentage of projects completed on time” is
not achieve in 2 years? By your experience in work, do you think what causes of
time overrun projects are?
Q2: Why do you think so? Could you tell me an example?
Q3: What are causes of the issue you told?
Q4: Who is responsible for this issue? Why?
Q5: Are there any other causes for this?
Thank you for your useful information.
6.2. Summary of finding from qualitative research (first interview)
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Table 9. Summary of finding in first in-depth interview (source: first in-depth interview)
Transcript Key answer Group of causes
Logistic-Purchase manager
Q0: Could you introduce about yourself? (Such as: name, position, + Logistic-Purchase
responsibilities) manager
- Hi, Khoa. I’m Quang. I’m Logistic-Purchase manager. I monitor all the + Monitor all the orders
orders from Sales department and support for complicated or urgent + Support complicated or
orders. urgent orders
Q1: Do you know that KPIs about “percentage of projects completed on time” + Project completed Late product
is not achieve in 2 years? By your experience in work, do you think what overdue is depended on delivery
causes of time overrun projects are? delivering product late
- Yes, I know. Because another related KPIs which is “Percentage of
contracts delivered on time” is my department’s responsibility.
- I think project completed overdue is depended on delivering product
late.
Q2: Could you tell me more clearly? Why delivering product late? + Receive hundreds of Late product
- You can see that, we receive hundreds of order every day, from many order every day delivery
different contracts, our work are overload. + From many different
contracts
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+ Our work are overload
Q3: As I know, Logistic-Purchase Department have 2 new members, aren’t + Required to recruit new Late product
they? employees from last year delivery
- That’s right. I have required to recruit new employees from last year, + Last 2 months, HR
but until last 2 months, HR department found the suitable candidate. department found the
suitable candidate
Q4: Is there any problem? Recruitment requirement has not been late until 5 + Require a little high Late product
months before. quality delivery
- It may be because I require a little high quality. I hope to find employee
who has experience in purchasing but also have knowledge in
technologies and be good at English. We are too busy so we do not have
enough time to train new employee. He have to adopt to new job
quickly.
Q5: Are two new employees satisfy with your requirement? Do your workload + Adapt quickly Late product
reduce? + Still overload delivery
- Truly, two new employees are good, they adapt quickly. But our work + Working process is too
is still overload. I think our working process is too complicated and we complicated
+ Unnecessary document
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have to make too many unnecessary document. It waste our time but + Waste our time
do not have any benefit.
Q6: Why do you think document is unnecessary and workflow is complicated? + Hundreds of order for a Late product
- In ordering phase, sale can make hundreds of order for a contract, but contract Incident in project
they do not send one time, it depend on the project process. It’s worse + Do not send one time
when products imported from different areas. On the other hands, there + Products imported from
are many project is process took place at the same time so sometime, different areas
we miss order of different contract lead to delivery wrong products and + Miss order of different
we have to change other products. It took time to change products. contract
Another problems was that we have to collect all order of an contract, + Delivery wrong
which was receive in different time, may from 1-2 years, to make products
acceptant with customers. Before, the number of contract is not many, + Took time to change
so there isn’t problem. However, 2 current years, the number of products
contract rose quickly, so the order we receive every day rocketed, the + Collect all order of an
document is much and become complicated. contract
Q7: Is there any causes lead to time overrun project or late product delivery? + Sales require urgent Urgent time
time requirement
+ Warning
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- Sometimes, Sales require urgent time to delivery product or complete, + Still accept
we warning that we could delivery on time but they still accept to
customer.
- This month, there was a project overdue because they require new
product have not been imported before. We have to prepare product
certificate in 2 weeks so the process of project is delay. However, this
case is rarely, because only project provided new technologies require
new product, but not all new technologies project need new products.
Q8: Is there anything else? + Sales misunderstood Incident in project
- Sometime, delivery wrong product caused by sales mistake. They customer’s requirement
misunderstood customer’s requirement so they make order is not
suitable with customer. I think that’s all.
Sale and Project Management manager
Q0: Could you introduce about yourself? (Such as: name, position, + Sale manager and plural
responsibilities) Project Management
- Hi, Khoa. I’m Viet. I’m Sale manager and plural Project Management. + Manage sale team
I ‘m responsible for revenue of sale in Ho Chi Minh City, I manage sale + Promote
team and promote them to achieve KPIs of revenue. I also work with
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my customer to make revenue for company. In Project Management + Work with my
manager, I monitor progress of all project and support Project customer
Management Department to solve overdue project. + Monitor progress of all
project
+ Support to solve
overdue project
Q1: Do you know that KPIs about “percentage of projects completed on time” + Late product delivery is Late product
is not achieve in 2 years? By your experience in work, do you think what main causes delivery
causes of time overrun projects are?
- Yes. This KPI is responsibility of Project Management Department. It’s
also problem that we have not solve effectively.
- I think late product delivery is main causes to overdue project.
Percentage of contract which is late product delivery is also high.
Q2: Do you think why product delivery late? + Complicated document Late product
- I think complicated document and workflow is main reason. I also and workflow delivery
confuse with approved a lot of order every day, while an order is long + Order is long and many
and many different products. Truly, some time, I get mistake with a list different products
of products and equipment in order.
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+ Get mistake with a list
of products and
equipment
Q3: Do you think is there any other reason lead to time overrun project? + Incident in project also Late product
- I think incident in project also causes to overdue. This‘s usually happen causes to overdue delivery
for new technology project because our engineer don’t have experience + Happen for new Incident in project
on it. However, customer is understand with over because of new technology project
technologies. I don’t think this is a problem for our company. By + Customer is understand
contrast, new technologies project is opportunity for engineer to + Incident also causes by
develop their competency. On the other hand, incident also causes by delivery wrong product
delivery wrong product. This case will effect to company’s reputation. + Effect to company’s
reputation
Q4: Do you think what cause to delivery wrong product? + Mistake when delivery Late product
- It can be mistake from Logistic-Purchase department when delivery or + Because of wrong order delivery
causes by Sale department because of wrong order. Incident in project
Q5: Can you explain more clearly? + Delivery for hundreds Late product
of order delivery
Incident in project
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- Logistic-Purchase department delivery for hundreds of order, so + Misunderstand of sale
mistake happen is possible. This has been happen with contract of about customer’s
VNPT and VTC. requirement
- About wrong order, it caused by misunderstand of sale about
customer’s requirement. Sales competence is not the same, some works
effectively and careful, some usually had mistake such as
misunderstood customer’s requirement.
Q6: Do you think is there any other causes lead to overdue project? I hear that + Sales forgot to send Urgent time
sometimes sale require urgent time so logistic-purchase department could not orders requirement
respond. + Customer’s
- Yes. Sometimes, Sales forgot to send order, they make an order and requirement
save on laptop but forgot to send. However, most of the case is
customer’s requirement.
Q7: Why do Sale accept customer’s requirement although it couldn’t respond? + Pressure from KPIs of Urgent time
- Every members in Sale Department have pressure from KPIs of revenue requirement
revenue. I think they don’t want to waste opportunity to have revenue. + Important customer Customer delay
In other case, some our important customer with high revenue so they + Lose a large profit and project
require urgent time to save their cost. If we don’t accept, we will lose a future opportunity
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large profit and future opportunity. In some case, customer require to + Customer require to
delay project because they have not completed infrastructure or they delay project
have problem with finance and delay payment for company. Because + Have not completed
customer require to delay, we do not have responsibility. But it also infrastructure
reason for time overrun project. + Have problem with
finance
+ Delay payment
Q8: Focus on customer’s urgent time requirement, What happen if we accept + Experience Sale could Urgent time
requirement but we could not respond? Do customer complain about delay? negotiate well requirement
- Truly, experience Sale could negotiate well in this case. They could + Sales have weak
persuade customer to get more extension day, there only one or two negotiating skill
new Sales have weak negotiating skill could not persuade customer. I
suggest new sale to attend negotiating skill to improve their skill.
Q9: Do you think any else causes lead to time overrun project?
- I think that’s all.
Page 46 of 56

6.3. Group of causes and variable base on result of interview (first interview)
Table 10. Group of causes and variable (source: first in-depth interview)
Group of causes Variables
Late product  Work overload (Our work are overload)
delivery  Lack of human resource (Required to recruit new
employees from last year)
 Late of human response (until last 2 months, HR
department found the suitable candidate)

 Required high quality of candidate (Require a little high
quality)

 Preparing product certificate (have to prepare product
certificate)

 Project provide new technologies (project provided new
technologies require new product)

 Complicated document and workflow (Working process
is too complicated, Unnecessary document).

 Large and various orders (Hundreds of order for a
contract, do not send one time, Order is long and many
different products)

 Products in an order imported from different areas
(Products imported from different areas)

 Urgent time requirement (Sales require urgent time)
Incident in project Delivery wrong product (Miss order of different
contracts, Mistake when delivery)
 Sales misunderstood customer’s requirement
 Project provided new technologies (Happen for new
technology project)
Urgent time  Sales forgot to send orders
requirement  Sale accept customer’s impossible requirement
(Warning, Still accept)
Page 47 of 56

 Pressure from KPIs of revenue
 Afraid of dissatisfying important customer (Important
customer, lose a large profit and future opportunity).
 Sales had weak negotiating skill (Experience Sale, new
Sales).
Customer delay  Infrastructure was not ready (Have not completed
project infrastructure)
 Customer delay payment (Have problem with finance,
Delay payment)
6.4. Analysis the number of time overrun projects in 2017 by factors
Table 11. Number of time overrun project summarized by main factors (source:
SVTECH’s data)
Factors
Number of time
Note
overrun projects
Ineffective scheduling and control 18
Sales had weak negotiating skill 6
Project provide new technologies 3
Customer delay project 5
Change law 0 Happened on July 2018
Number of time overrun projects 27
Number of time overrun projects is less than total of time overrun projects causes by
each factor because there are some time overrun projects was caused by more than 1
factors.
6.5. Result of SVTECH’s control system measurement
Table 12. Time in plan and actual time to finish project in 2017 (source: SVTECH’s
data)
Unit: Day
Plan Actual Number of Plan Actual Number of
delayed day delayed day
450 402 (48) 76 76 -
Page 48 of 56

30 27 (3) 69 69 -
360 340 (20) 53 53 -
285 270 (15) 62 62 -
210 199 (11) 83 83 -
150 145 (5) 38 38 -
135 131 (4) 65 65 -
175 173 (2) 40 40 -
60 60 - 64 64 -
75 75 - 58 58 -
90 90 - 89 89 -
15 15 - 37 37 -
30 30 - 81 81 -
45 45 - 46 46 -
37 37 - 31 31 -
41 41 - 71 71 -
23 23 - 48 48 -
14 14 - 50 50 -
43 43 - 78 78 -
52 52 - 76 76 -
46 46 - 82 82 -
60 60 - 60 60 -
75 75 - 40 40 -
69 69 - 67 67 -
43 43 - 74 74 -
57 57 - 68 68 -
33 33 - 84 84 -
75 75 - 210 213 3
90 90 - 180 183 3
54 54 - 165 168 3
35 35 - 330 337 7
54 54 - 315 322 7
47 47 - 255 262 7
60 60 - 270 279 9
180 180 - 345 357 12
43 43 - 255 264 9
59 59 - 360 374 14
Page 49 of 56

65 65 - 270 283 13
40 40 - 105 112 7
56 56 - 180 193 13
48 48 - 210 227 17
69 69 - 255 279 24
39 39 - 195 214 19
75 75 - 90 101 11
39 39 - 105 119 14
47 47 - 165 188 23
57 57 - 210 241 31
36 36 - 330 386 56
84 84 - 105 130 25
35 35 - 105 135 30
51 51 - 135 175 40
34 34 - 15 20 5
65 65 - 135 184 49
45 45 - 30 45 15
38 38 -
Average delayed days 3.3
Deviation of delay days 11.8
6.6. Transcript of problem discussion (third interview)
Interviewer: Hello, Mr Viet. I has received data about time of project from 2015 to
2017 from Ms Nguyen. I took a view and saw that number of time overrun project and
average percentage of overtime increased sharply. Especially, the number of delayed
days rose nearly fourfold last year. What do you think about these numbers?
Respondent: We are stress because of time control. Project management team has
been cut down the bonus last year because we do not achieve the KPIs in time project
control. In company perspective, increasing of delayed time also decrease customer’s
satisfaction and we spent amount of money for contract punishment because of
overtime.
Interviewer: What was happened with time control in 2017?
Respondent: As you know, we have more project in 2017 than previous year. The
number of project in 2017 increased about 20% or 30% in 2016, but we could not
recruit more employee lead to project team work ineffectively.
Interviewer: Do you mean that our project control system is working ineffectively?
Page 50 of 56

Respondent: Yes. That I want to say. There are many reason for time overrun project,
it caused by customer change their requirement, by supplier delivery late, but the main
responsibility was project management team when we could not estimate the time to
project and could not control project follow the plan. Sometimes, we missed some of
task and leaded to delay starting day of project.
Interviewer: So what is reason lead to ineffective time control?
Respondent: I think the first reason is lack of human resource. The number of project
increased and amount of work also rose but the number of project management team
was not changed. Therefore, each member’s work was increased and they could not
work well.
Interviewer: Why do board of directors was not approved to recruit more employees
for project management team?
Respondent: They explained that project management team is work ineffective so
they need more time to operate control system. Board of directors expect project
management team should be improve their skill to arrange work more effectively, and
we could improve company’s human competence instead of increase the number of
employees.
Interviewer: What do you think about this decision from Board of Directors?
Respondent: First time, I disagreed and argued with Board of Directors to protect our
team. However, when I seriously review project management team performance, I
recognized that Board of Director was correct. Project management team work
inefficiently, their control method is complicated so when amount of work increase,
they got hard and work ineffectively. Therefore, I agree with Board of Directors that
we will hold some project management training course for project management team
to improve their ability to control project.
Interviewer: What do you think project management team should be improved? For
example: knowledge, skill, experience or others.
Respondent: I think their experience is good enough because they have worked for
upper 3 years in project management team. I don’t worry about their experience.
However, knowledge and skill is their problem. Because they are graduate from
different major, such as MBA, marketing, technology, so they have not been trained
about project management fully, they just attended some in-house course about project
management and on-job training. I am considering to suggest them to attend some
project management. Skill is not the same between team members, some members has
good skill to negotiate with customer, suppliers while the others couldn’t. Therefore, I
think I also suggest them to attend soft skill course.
Interviewer: What do you think about risk identify and control ability of project
management team?
Page 51 of 56

Respondent: To be honest, currently, risk of project was predicted by Sale-team,
project management team also follow and control, so they are passive and sometime
don’t understand clearly about risk.
Interviewer: Thanks for your sharing, Mr Viet. Is there any other reasons cause to
ineffective control system?
Respondent: Another problem is communication system. They are only communicate
by phone or directly but don’t record clearly. It is not problem when everyone control
4 or 5 projects, but in 2017, the number of project increase so each project
management member have to control at least 20 projects in the same time. Therefore,
they sometime forget the information and list to delay or make confused for others
department. I have told them record all the information and report to me. But everyone
record by their style and it is make the information become complicated.
Interviewer: Have they reported clearly about project scope, responsibility of project
members and time line to deploy.
Respondent: Most of report is clear, but there still some project was not clear. I
reminded them to make clear this, but then they finish, the project has been started.
Interviewer: So do they updated project frequently?
Respondent: In 2017 is not, they only updated when customer or I required because
they need time to focus on work. However, because of bad result of KPIs in 2017, I
required them to report to me weekly. But sometime, the information is still not clear
and I have to ask them to revise.
Interviewer: Do you think they are record and report information accuracy and clearly?
And do they analyze the information about project progress?
Respondent: No. I don’t think so. If it is clear, I have not to ask them to revise. Their
report is as a list of time line and task in plan and actual. I give me an idea, I will ask
them to analysis the information instead of tell me what happened in a week.
Interviewer: I think it will be good to your team. So do you think is there any else
reason?
Respondent: Truly, I don’t have any more idea.
Interviewer: Thank Mr. Viet. I got a lot of information today. I will summarize and
give you some idea to improve time control system of project management team.
Respondent: I’m hearing to recevie your advice.
Page 52 of 56

6.7. Result of causes evaluation
Sale and Project Management manager
Causes Control Measure Benefit
Lack of control system knowledge 4 4 3
time of suppliers
3 2 3
Weak ability to identify and control risk of project 2 3 5
member is not clear
2 4 2
Estimate the time line is not accuracy and detail 3 5 4
Ineffective information measurement and analysis 4 3 5
Ineffective information communication 3 3 3
Purchase-Logistic manager
time of suppliers
3 3 3
member is not clear
2 3 3
Human Resource manager
time of suppliers
3 3 4
Page 53 of 56

member is not clear
4 4 2
Quality Assurance management manager
time of suppliers
4 2 3
member is not clear
4 4 2
Chief Operating Officer
time of suppliers
4 2 4
member is not clear
4 4 2
Page 54 of 56

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OVERRUN RISK IN CONSTRUCTION PROJECTS. Theoretical and Empirical
Researches in Urban Management. 2017 May; 12(2).
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completion time for Malaysian construction projects. Built Environment Project
and Asset Management. 2015; 5(1).
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Ovrerun Risk Factors in Kuwait's Construction Projects. Journal of Economic and
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construction of private residential projects in Kuwait. Construction Management
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7. Ogunlana SO, Promkuntong K, Jearkjirm V. Construction delays in a fast-
growing economy: Comparing Thailand with other economies. International
Journal of Project Management. 1996 Feb; 14(1).
8. Chitongo , Pretorius L. CLIENT PROJECT TIME SCHEDULE CONTROLS —
AN EMPIRICALLY-BASED SYSTEM DYNAMICS CONCEPTUAL MODEL.
South African Journal of Industrial Engineering. 2018 May; 29(1).
9. Florence Yean Yng Ling , Ang WT. Using control systems to improve
construction project outcomes. Engineering, Construction and Architectural
Management. 2013; 20(6).
10. Grau, David , Abbaszadegan, Amin. IMPACT OF REAL-TIME PROJECT
CONTROL ON CAPITAL PROJECT COST AND SCHEDULE
PERFORMANCE. Organization, Technology & Management in Construction.
2015; 7(2).
11. Wit Ad. Measurement of project success. Butterworth & Co. 1998 August; 6(3).
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12. Nasseri A, Hammad , Aulin R. Understanding Management Roles and
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Projects in Oman. Journal of Construction in Developing Countries. 2016; 21(1).
Page 56 of 56

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