Transportation project performance management system

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
Volume 4, Issue 6, November - December (2013)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 4, Issue 6, November - December (2013), pp. 84-91
© IAEME: www.iaeme.com/ijm.asp
Journal Impact Factor (2013): 6.9071 (Calculated by GISI)
www.jifactor.com

IJM
©IAEME

TRANSPORTATION PROJECT PERFORMANCE MANAGEMENT
Christine Kowal Chinelli1,

Carlos Alberto Pereira Soares2, Orlando Celso Longo3,
André Bittencourt do Valle4

1, 4

Researcher in the Graduate Program in Civil Engineering,
Niterói, Universidade Federal Fluminense, Brazil.
2, 3
Professor in the Graduate Program in Civil Engineering, Niterói,
Universidade Federal Fluminense, Brazil.

ABSTRACT
This paper deals with the performance management of transportation projects. In this regard, it
proposes a performance management system through which the information and standards arising from
transportation projects undergo a series of steps in which this information is measured, fed back and
assessed, allowing the detection and communication of deviations and the implementation of corrective
and improvement actions.
Keywords: Transportation Project, Performance Management, Project Control.
1. INTRODUCTION
Transportation systems are key factors for increasing wealth and development of a society.
Besides being important production elements, they enable people's access to education, work and
leisure.
Factors such as population growth and economic development boost the demand for transport of
people and cargo, making it necessary to expand the transport infrastructure, which is typically
implemented through projects. Thus, transportation projects are usually related to the expansion and
improvement of transport infrastructure networks.
“Transportation project management, for all modes of transportation, is under extreme
budgetary, political, and community pressure to contain costs and improve efficiency in the delivery of
projects ‘on time and on budget.’ In order to meet these twin goals, transportation agencies must
employ dynamic project management tools. The successful planning, design and implementation of
84


transportation projects needs to meet various performance metrics depending on each stakeholder’s
perspective.” [8]
Transportation project performance management encompasses two major issues: the first is
monitoring and control, aimed at detecting if the project runs according to plan; the second is
improvement, whose goal is to improve the processes performance, regarding primarily efficiency,
efficacy and effectiveness.
“Performance measurement systems are made to trigger corrective actions and hence serve as
early warning systems to generate signals when the desired performance drops below a certain
predefined management threshold”.[16]
Different issues from the monitoring and controlling of projects have been described in
literature ( [6]; [11]; [14]; [15] )
According to [3], project control includes four elements: the performance standards and
plans, the performance-measurement techniques, a comparison of the planned and actual
performances, the corrective action.
Therefore, it is extremely important the continued monitoring of transportation projects,
comparing the actual and planned performances, pointing out deviations, ensuring that the
performance is as close to plan as possible.
“Control is also essential to determine the extent of the results achieved, the efficiency and
productivity obtained implementing programs, and the degree of compliance with orders and
instructions, as well as to minimize waste of manpower, materials, time, other inputs eventually
required, and, therefore, money.” [7]
Also, effective control can provide a quick response as soon as a deviation is detected,
allowing the correction of failures or changes in planning, allocating resources, changing the duration
of the activity, or other actions, in order to achieve the project goals.
However, according to [4] “Project-control systems are adequate for the identification of
deviations from project plans, but not adequate for helping the project managers to diagnose the
cause of the deviation or to devise a suitable corrective strategy. In other words, common projectcontrol systems focus on standards development, performance measurement, and the comparison of
planned and actual performances, and they ignore corrective action.”
In the proposed system the concepts of control and performance improvement are closely
related to the concept of variability.
The processes that characterize transportation projects are full of variations due to factors that
compose them. These variations are basically of two types: those intrinsic to the processes, which are
natural variations, expected to occur as a result of the context in which the factors are used; and those
extrinsic to the processes, which are exceptional variations, of unexpected and random occurrence,
which deviate processes from its natural state of functioning.
Thus, while the primary purpose of control is to detect the occurrence of extrinsic, external
variations in order to correct its causes, the goal of performance improvement is to act primarily on
the intrinsic, innate variations through management actions which allow the evolution of processes
and, consequently, of the enterprise as a whole.
2. TRANSPORTATION PROJECT PERFORMANCE MANAGEMENT SYSTEM
The main goals of the proposed performance management system are the detection of
deviations and implementation of corrective solutions, the review of goals, and performance
improvement.
To this effect, the system consists of five steps: measurement, feedback, assessment,
communication of deviations, and implementation of corrective and improvement actions.
85


Figure1 summarizes the proposed performance management system
Information and Standards arising from
Transportation Projects

Measurement
• What to measure (Scope, Time, Cost, Quality,
Defining the
Scope of
Measurement

Data
Collection

Processing
of Data

•
•

Human Resource, Communications, Risk, Procurement,
Stakeholder, Integration of project actions, …)
How much to measure (function between the cost
and the level of detail of the measurement)
When to measure (during the period of occurrence
or at the end)

• Accuracy level
• Necessary tools
• Measuring team training

Data suitability to the measurement goals

Implementation of Corrective and
Improvement Actions

Communication of
Information

• Corrective Actions
• Improvement Actions

• Destination
• Frequency
• Mechanisms

Communication
of Deviations

Assessment
• Establishment of Standards
• Comparing Information
with Standards

• Destination
• Frequency
• Mechanisms

Correction of Deviations
Review of Goals
Performance Improvement

Figure 1 – Proposed system for performance management
86


2.1. Measurement
Measurement is the basic tool for performance management, as it collects and treats the
necessary information for analysis. It consists of three steps: defining the scope of measurement, data
collection and processing data.
When defining the scope of the measurement, it should be defined what to measure, how
much to measure, and when to measure.
What to measure can be time, cost, quantity, quality, or any other variable, that directs focus
only to the truly important elements for the control and assessment process. Monitored information
usually concern data on Scope, Time, Cost, Quality, Human Resource, Communications, Risk,
Procurement, Stakeholder and Integration of project actions.
How much to measure implies defining the scope of measurement, being a function between
its cost and the level of detail in which the analysis will be performed.
When to measure defines the ideal time for the measurement, which can be during the period
of occurrence or at its end. Measuring during the period of occurrence offers the advantage of being
able to make corrections before the end of the operations. The cost of measurement during
intermediate stages of the process, however, may prove to be more costly than in the final stage,
being the best procedure based on a cost-benefit analysis.
In data collection, three factors should be considered:
• the level of accuracy with which they should be collected according to the type of analysis and the
characteristics of the work process;
• the tools needed to collect the data, including not only the adequacy of the measurement
instruments themselves, but also the collection forms;
• the training of the involved personnel regarding their ability to understand the data collection goal
and system, and to use the tools and fill out the forms properly.
In data processing, the information collected is treated to make them suitable for the goals of
measurement.
2.2. Communication of Information
After properly processed, the data must be sent to where the analysis will be carried out,
which means defining the data destination, the frequency in which it will be sent, and the
mechanisms to be used to communicate it.
Regarding the destination, the information shall be sent to top and middle management,
advisory units, supervision, and assessed personnel.
Regarding frequency, the information must be sent in time intervals that allow the analysis
and maturation of previously sent data. According to Hampton (1973), "the frequency of feedback
imposes a more delicate problem. Despite the general desire to feedback frequently, it is possible to
provide it even more often. Every job or task tends to require the passage of a certain period of time
between its implementation and its results. This period, sometimes called the prudence interval, can
be longer for high-level jobs than for low-level. Feedback tends to lose its validity and credibility if it
reflects a prematurely measured performance."
Regarding mechanisms, they must be agile and in an appropriate language to those who will
use it. We recommend the use of audiovisual reports and devices.
2.3. Assessment
Assessment is essentially a comparison activity. It is by comparing the data obtained from the
previous step, with pre-established standards, that the evaluator gets an insight into the process
variability in order to draw conclusions about it.
The establishment of standards typically begins during the planning of the actions to be
87


performed; so the plans, in addition to containing how the actions should be carried out, should also
indicate the expected standards of performance, which does not prevent, at the performance
management, that other information that may appear relevant to be collected and assessed. The
standards normally considered are those related to the Scope, Time, Cost, Quality, Human Resource,
Communications, Risk, Procurement, Stakeholder and Integration of project actions.
Figure 2 presents the process of establishing standards.

Past experience based
on the record of the
work performed on
similar transportation
projects

Other relevant
information from
feedback of the
transportation project
activities

ESTABLISHMENT
OF STANDARDS

Characteristics of
the work to be
performed and its
results

STANDARDS
Figure 2 - Establishment of standards process
The need for decision making normally occurs at two situations: the first one is where there is
the need for immediate solution for a problem, and the second one is where there is no emergency
that requires immediate action, but rather something that can be improved. Hampton (1983).
In both cases, the core of the problem is the fact that the expected results were not achieved,
i.e., deviations towards the goals were not detected.
Understanding the problem must occur on the basis of the expected results, systemically, in
order to be more in line with reality. Additionally, it is important that the problem is comprehended
by an approach that considers it inserted in the project context, influencing and being influenced, and
not as an isolated case.

88


2.4. Communication of Deviations
When deviations are detected, they should be reported to their origins, so that corrective or
improvement measures can be taken. For the communication of deviations, it should be defined the
destination, frequency and mechanisms with which they will be reported.
It is understood that deviations should have, as far as possible, two primary destinations:
• The first one concerns the levels of the project structure whose hierarchical position allows a
proper understanding of the problem as well as the necessary authority for the implementation of
corrective actions;
• The second one concerns the individuals who originated deviations or are directly responsible for
them. According to HAMPTON (1973), "the arguments in favor of feedback to the measured
individuals themselves include the motivational benefits associated with self-control and the
possibility that individuals are the best judges in deciding what to do with the information. [...]
People will feel more committed in relation to the goals they have set themselves."
Regarding deviation communication frequency, it shall be appropriate to the urgency of
corrective and improvement actions.
Regarding deviation communication mechanisms, as well as for the mechanisms of
communication of information, they must be agile and in an appropriate language to those who will
use it. We recommend the use of audiovisual reports and devices.
2.5. Implementation of Corrective and Improvement Actions
As already seen, corrective and improvement actions are associated with the type of variation
found in the production process, due to inherent factors of the means of production, technology and
environment.
Corrective actions concern the maintenance of quality in the construction projects processes,
through actions aimed at correcting extrinsic variations that are occurring or are likely to occur, in order
to eliminate or at least minimize them, preventing thus decreasing of quality of these processes over
time.
Improvement actions comprise management actions aimed at reducing the intrinsic variations,
thus enabling performance improvements by obtaining progressively higher results.
The meaning of the concepts of correction and improvement are closely associated with the
concepts of inappropriate and appropriate. Thus, correction is an action associated with the removal
of something considered inadequate when compared to pre-established standards, in order to make it
suitable, correct.
Improvement, however, is an action associated with the establishment of new standards. Thus,
although the system works properly (in relation to established standards), improvement actions are developed
in order to make the construction companies more competitive.
Among the corrective actions stand out the actions that act on occasional problems of the
process and on unpredictable behaviors that lead to unexpected results.
Among the improvement actions stand out the actions that act on chronic problems of the process
and actions that lead to new, higher performance standards.
For the implementation of corrective and improvement actions, alternatives should be formulated to
consider the stakeholders, the experience on the subject, and creativity.
In summary, the formulation of alternatives involves the generation of possible solutions according to
pre-established standards, or solutions which are able to handle the situation at a level of performance similar
or superior to that established by these standards. As the alternatives are formulated, their main consequences
should be identified and added to these subjective probabilities of their occurrence when necessary, so the
best solution can be reached.
89


3. CONCLUSIONS
The paper presented the synthesis of a transportation project performance management system,
which helps companies to develop transportation projects, notably infrastructure improvement projects, to
fulfill their task of producing products and services that meet the needs and desires of customers by
improving the efficiency and effectiveness of processes.
The discussed management system focuses on the correction of deviations, the review of goals and
objectives, and performance improvement.
A consistent process of establishment of standards is essential to the proper operation of the system.
In practice, the establishment of standards typically begins during the planning of the actions to be performed;
so the plans, in addition to containing how the actions should be carried out, should also indicate the expected
standards of performance.
The transportation project performance management system must be properly integrated into the
business performance management system of the companies responsible, which is usually designed to
improve management, administrative and operating processes of these companies.
It is also important that, during the implementation of the system, mechanisms are developed that
ensure the system understanding by all involved in performing the activities.
An important factor for the transportation project performance that deserves special attention
is the performance of individuals at work, which should be analyzed under the characteristics of the
work processes and the processes ability to provide the means necessary to perform the services, and
also opportunities offered to workers.
Among the characteristics of the processes that may influence the performance, maybe the
most important is the level of variation, due to the factors that comprise them. These variations are
basically of two types: those intrinsic to the processes, which are natural variations, expected to occur
as a result of the context in which the factors are used; and those extrinsic to the processes, which are
exceptional variations, of unexpected and random occurrence, which deviate processes from its
natural state of functioning.
The performance is also influenced by the ability of the processes to provide the means and
opportunities. In this regard, there are some factors that should be considered:
a) Inherent factors of the job
• Level of diversity: it concerns the amount of fundamental actions that the worker must perform
to obtain the product or service;
• Level of effort: it corresponds to the intensity of physical and / or mental effort needed to
obtain the product or service;
• Level of autonomy: this is the level of freedom, which is given to the employee, on how best to
perform their activities;
• Level of information: it concerns the intensity with which information about the quality and
suitability of the work performed are communicated to the worker.
b) Inherent factors of the means of production, technology and environment
• Adequacy of equipment, technology and work environment to the nature of the work;
• Safe handling and use of the equipment;
• Production capacity;
• Space provided to perform the job;
• Working environment characteristics;
• Ambience and occupational safety;
• Procedures and specifications that allow the workers responsible for carrying out the tasks to
achieve the expected results efficiently and safely.
90


4. REFERENCES
[1]
[2]
[3]
[4]
[5]
[6]

[7]
[8]

[9]

[10]
[11]
[12]
[13]
[14]
[15]
[16]
[17]

[18]

[19]

Amorim, Sérgio Roberto Leusin. Tecnologia, Organização e Produtividade na Construção.
COPPE/UFRJ, Rio de Janeiro, 1995.
Chin, S, Yoon, S, Choi, C, and Cho, C. RFID+4D CAD for progress management of
structural steel works in high-rise buildings. J. Comput. Civ. Eng., 2008, 22(2), 74–89.
Cleland, D I. A strategy for ongoing project evaluation, Project Manager. 1985, 11-17.
Diekmann, J. E. ; Al-Tabtabai, H. Knowledge-based approach to construction project
control. International Journal of Project Management. 1992, 10 (1), 23-30
Hampton, David R. Conceitos de Comportamento na Administração. São Paulo: EPU, 1973.
Kim, S., Park, C., Lee, S., and Son. Integrated cost and schedule control in the Korean
construction industry based on a modified workpackaging model. Can. J. Civ. Eng.. 2008,
35(3), 225–235.
Limmer, Carl Vicente. Planejamento, Orçamentação e Controle de Projetos e Obras. Rio
de Janeiro: Livros Técnicos e Científicos Editora. 1997.
Marshall, K. R., & Rousey, S. Guidance for transportation project management (NCHRP).
Web-Only Document 139). Washington, DC: Transportation Research Board, National
Academies. 2009.
Mello, Cesar Gomes et al. Modelo de Gestão como Fator de Competitividade:
Recomendações para as Empresas Brasileiras. In: Programa de Gestão Avançada: Temas
para Excelência. Rio de Janeiro: Qualitymark, 1994.
Mladenovic et al. Built Environment Project and Asset Management. 2013, 3 (2). 228-249.
Navon, R., and Sacks, R. Assessing research issues in automated project performance
control (APPC). Autom. Constr., 2007, 16(4), 474–484.
Sink, D. Scott. Planejamento e Medição para a Performance. Rio de Janeiro: Qualitymark,
1993.
Soares, Carlos Alberto Pereira. Modelo de Sistema de Gestão Aplicado à Empresas de
Construção Civil. Rio de Janeiro. COPPE/UFRJ. 1997
Song, L., and AbouRizk, S. M. Measuring and modeling labor productivity using historical
data. J. Constr. Eng. Manage., 2008, 134(10), 786–794.
Thomas, H. R., and Sakarcan, A. S. Forecasting labor productivity using factor model. J.
Constr. Eng. Manage., 1994, 120(1), 228–239.
Vanhoucke, M. Measuring the efficiency of project control using fictitious and empirical
project data. International Journal of Project Management. 2012, 30. 252–263.
Dr.L.Vijay and B.Jayachitra, “Effectiveness of Performance Management System”,
International Journal of Advanced Research in Management (IJARM), Volume 1, Issue 1,
2010, pp. 53 – 59. ISSN Print: 0976 – 6324, ISSN Online: 0976 – 6332.
Leandro Torres Di Gregorio and Carlos Alberto Pereira Soares, “Use of the Mix-Based
Costing – Mixbc – to Determine Product Profitability, Level of Attractiveness and Synergy
of the Production Mix”, International Journal of Management (IJM), Volume 3, Issue 2,
2012, pp. 1 - 12, ISSN Print: 0976-6502, ISSN Online: 0976-6510.
Roberiton Luis Oliveira Ribeiro, Andre Bittencourt Do Valle, Carlos Alberto Pereira Soares
and Joao Alberto Neves Dos Santos, “From Idea to Benefit: Project Portfolio Management
using Front End Loading, The Standard for Portfolio Management and Prince2”,
International Journal of Management (IJM), Volume 4, Issue 5, 2013, pp. 60 - 68,
ISSN Print: 0976-6502, ISSN Online: 0976-6510.

91

Transportation project performance management system

Recommended

Recommended

More Related Content

What's hot

What's hot (16)

Viewers also liked

Viewers also liked (7)

Similar to Transportation project performance management system

Similar to Transportation project performance management system (20)

More from IAEME Publication

More from IAEME Publication (20)

Recently uploaded

Recently uploaded (20)

Transportation project performance management system