Mostly Client Side

Have you done anything to your business to make it organized and easy to manage not only for yourself but for others who help you with it? Or are you still struggling to keep things in order and giving your employees a hard time to keep up with you. If the answers to these questions are yes then it is high time to get yourself a project management tool. If you have already heard of this tool and feel that they might be too expensive or too complex for you or your staff to manage, rest assured, it is not as expensive as it used be and also it is very simple and easy to use. You most certainly will grab it if you know the profitability that it is likely to bring to your business. The shear power of this tool has started bringing drastic changes not only on the business front but on the whole approach to life. People have started settling and accepting it as a way of life even to the extent of being impatient when they do not get faster results.

Now the project management tools are available so widely that it has become more complicated to choose the company who can give you the best. The tool should be just right and what you need for your business. Unless you have personal recommendations for this product it would be wise to do some comparison shopping both for features and cost before you decide what is good for you. The criteria I believe should be efficiency and simplicity of use and good customer service. Though it sounds to be a simple tool to use, the functions it is capable of performing is far complex and enormous.

The features you are most likely to find with these tools are; project management, resource management, task management, statistics and report, calendar, time management, work schedule, security, messaging, recording files, data, task reminder etc. just to name a few. You will get to learn more on that once you start your own research and you can also expect most companies to give you customizable tool for your needs. The competition is high in this industry so it would be a good idea to look for companies with experience in your area of business.

I hope now you can understand what a simple project management tool is capable of doing to your business. The fact that it can perform multiple tasks added to the fact that they make it possible to do it more efficiently than manual work force should be a deciding factor. Just equate cost of the tool with all that you are spending on you workforce. This simple equation should let you decide whether you need a project management tool or not. It is said that once you install this software it will pay for itself and the annual profit turnover is likely to be increased by many folds.

It is certain that these software tools are capable of giving faster and better results with more efficiency…

A highly recommended Project Management Tool.
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While Six Sigma is becoming more popular, a lot of companies still rely upon the conventional Project Management Body of Knowledge (PMBoK). This discipline is used throughout all sectors and has been one of the most pivotal managerial tools for many years. In truth, there are many similarities between the two methodologies. For example, both include identifying problem areas, managing resources, and conducting cost analysis as high priorities. However, while there are parallel goals, there are also distinct differences.

In this article, I’ll provide an overview of the differences between a Six Sigma initiative and one that is guided by the Project Management Body of Knowledge. We’ll explore how data contributes to both, the role of management and the problems they face, and one of the key areas in which the two standards deviate from each other.

The Value Of Data

Both Six Sigma and project management initiatives are deployed in order to improve existing processes. However, PMBoK assignments often have an inherent weakness: in many cases, they lack a reliable method to measure the results of the process-related changes that are made. In short, there’s often no way to quantify the results. Because of this, a PMBoK team may consider their efforts successful, but they lack the data to validate their claim.

By contrast, Six Sigma is a methodology that is primarily driven by data. Processes are analyzed and data is collected. Problems are identified, creative solutions are designed and deployed, and more data is collected. It is only through analyzing the collected data that success or failure of the initiative can be determined.

Problems Facing Management

PMBoK project managers cope with a number of problems for which Six Sigma is designed to resolve. For example, when managers approach a work process problem, they first need to gain an understanding of the issues. Then, they need to design and implement tracking mechanisms through which they can quantify selected variables. Next, they need to collect data and analyze it in order to identify inefficiencies within the process that can be addressed with available resources.

While a professional project management initiative can help managers accomplish those tasks, it is limited in its scope. This is partly due to the methodology’s focus upon broad-scale processes using a centralized project office. By contrast, a Six Sigma initiative is more flexible; it provides managers the tools they need in order to do their job within a smaller, decentralized unit.

Ongoing Prevention Vs. Piecemeal Selection

This is one of the main areas in which the two methodologies have very different approaches. Professional project management examines processes on a piecemeal basis. The central project office considers each initiative individually; as one assignment is completed, another is initiated. Neither assignment has any bearing on the other.

Six Sigma takes the opposite approach. Assignments are designed to uncover the root cause of a process-related problem. Once a solution has been implemented and determined to be successful, the goal is to prevent the original failure from recurring over time.

Each Methodology Has A Place

What I’ve described above is not to suggest that the PMBoK is outdated or irrelevant. In fact, it continues to be a valuable methodology. However, its value is most evident in strategic applications where broad-scale processes are analyzed. On the other hand, Six Sigma is perfectly-designed for assignments that support ongoing review and improvement. The data from each initiative is used to establish benchmarks by which future performance is measured. In short, both methodologies have their place in different circumstances. One does not replace the other. When deployed simultaneously, they can work together for an organization’s continual improvement.

BMGI, a leading education and consulting firm in the innovation education field regularly posts information on six sigma at http://www.bmgi.com
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What do you think? Please comment below to tell me.

When a construction business is growing, more transactions are dealt with, volumes of documents are processed and schedules on different projects are set with the corresponding estimate on the budget and the number of workers for the job. These are the common tasks that must be organized by the contractor in order to pursue the plan. The use of spreadsheets and large piles of documents placed in boxes are the traditional methods of managing a construction industry. However, with the dawn of the computer age, companies have adopted the use of Construction Project Management Software.

You might ask and wonder what the benefits of construction project management services are. The answer is on the name itself. It helps you manage your construction projects and transactions. It generally helps you organize your documents and files so that you will conveniently know where to look at once you need it. It is very easy to make some updates. Moreover, it gives you control over the whole budget plans and anything that relates to the money that goes in and out of your funds.

The use of project management scheduling software helps you create a standard to all your construction projects. This aids your varied employees to look at the same updates, the same files, have similar documents and the like. Naturally it creates a unanimous guideline that the workers can look at anytime. This eliminates misunderstanding among contractors and workers on the project already set and planned. This also increases your value as a company by using a professional, effective and reliable system in dealing with a construction project.

Another benefit of Construction Project Management Software is the control of all your documents and files. If you would follow the traditional way of using spreadsheets and different kinds of programs, all your files will be scattered and it may not pass your knowledge that other files are already lost. You would not want this to happen to you especially that a construction work requires evident documents that can be visibly and conveniently used by workers if they want to. Having only one software and source for all your files keeps them monitored and organized.

Lastly, take control of the whole issue when it comes to money matters of the construction project with the aid of the construction project management services. Using a single and standard software help you track down all the expenses that you made on the whole project. This alerts you to take several measures when there is a need to change some plans due to any problems on the cost. You can also use the accounting plans for future projects if it went well with the previous ones.

The Construction Project Management Softwares indeed a useful tool for all the companies involved in the construction industry. Having your own standard tool gives you the confidence that you can take control of your files and project costs. Moreover, you can manage and organize your plans on the whole project and provide employees with common information with the use of the software.

helen mae quinn is a simple woman that loves to explore and share things through writing. She loves to share her knowledge to the users who care to understand everything about Construction Project Management Software. Go and visit Construction Project Management Software free website to get plenty of more information. Come and visit us at:http://construction-project-management-software.org/
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There is often a misunderstanding, and hence a mixed and overlapping use of terms, when it comes to program management. Sometimes a program is called a project. Sometimes a project is called a program. In addition, sometimes project portfolio and program are mistakenly used interchangeably. This article is intended to clarify the main differences and to distinguish the unique aspects of project portfolios, programs, and projects.

A great way to start to think about these is to think in terms of a pyramid hierarchy. At the top of the pyramid is portfolio management, which contains all of the projects and programs that are prioritized by business objectives. Below that is program management, which contains numerous projects that are interrelated, since they support a particular business objective. Programs consist of multiple projects, but projects can be independent and simply part of the portfolio. Projects differ from programs in that they are strictly tactical in nature.

Here is a more detailed look at each:

Portfolio Management
One of the key distinguishing features about Project Portfolio Management is that it is a process that is clearly characterized by business leadership alignment. Priorities are set through an appropriate value optimization process for the organization. Risk and reward are considered and balanced, and programs are selected based on their alignment with organizational strategy. Feedback is provided from program and project implementation so that portfolio adjustment can occur, if necessary. Strategic changes can also require portfolio adjustments.

Program Management
A key distinguishing feature of Program Management is business sponsorship. Almost by definition, based on decisions made at the Portfolio Management level, programs are sponsored by business needs. The Program takes on the ownership of benefits and is measured primarily based upon achievement of those benefits. Programs can also sometimes have “benefits streams”, or sets of interrelated benefits, such as increased R & D capabilities combined with increased market penetration, that cut across functions in the organization. Because programs, naturally consisting of multiple projects, span functions within an organization, they have all elements of a business system, and hence are general management oriented.

Project Management
Project Management is most concerned with delivery of capabilities, typically as defined within a program. Projects need to be strategy-driven, but do not own the strategic initiative as does a program. Rather, the project takes inputs and develops and implements a tactical plan. Monitoring along the way and final measurement of success is typically based more on the tactical considerations such as budget and schedule than upon achievement of a strategic business objective.

Now, with the basic distinctions among Project Portfolio Management, Program Management, and Project Management defined, each organization must “personalize” its implementation of these 3 processes within the organization. Some key factors and how they affect choices made about implementing each are as follows:

Industry – Industry provides insights into the stability and consistency of operations. Some industries, like pharmaceuticals, are be very driven by product lifecycles, albeit fairly long ones that include a major regulatory process. Consumer electronics companies are driven by much shorter project lifecycles and rapidly evolving technology, with little regulation. Construction firms are highly porjectized and deal with very stable technologies and products.

Organization size – Generally, greater size requires more formal organization. Without structure, the relationships between strategy, portfolio management, programs, and projects can become blurred and disjointed. The 2 points of focus here are to have well-considered organizational frameworks for each of portfolio, program, and project management, and then to pay special attention to building strong ties among them for communication, collaboration, and information flow.

Operational Breadth – A more narrowly defined operational capability, such as found in a sales-focused or production focused organization, will tend to require less formality, and information will flow more freely among portfolio, program, and project management processes. In organizations that are well-integrated horizontally, containing well-developed core competencies in R&D, marketing, production, distribution, and the like, there will be natural separations that need to be managed. This will make program management especially challenging, since it is likely to cross those boundaries.

Strategy – Like the various operational considerations, the strategy will effect organization of portfolio, program, and project management based on how complex it is. One key consideration not mentioned above is strategic alliances, which can greatly effect how tightly managed and how structured these processes need to be.

Standards for Portfolio, Program, and Project Management
Standards for Project Portfolio Management, Program Management, and Project Management do exist, and clear definitions can be found within. The worldwide Project Management Institute (PMI, www.pmi.org)) has developed and published the following standards (free for members):

The Standard for Portfolio Management
The Standard for Program Management
A Guide to the Project Management Body of Knowledge (PMBOK® Guide)Third Edition
John Reiling, PMP, has experienced portfolio, program, and project management in organizations of all sizes. John’s web site Project Management Training Online provides numerous courses on these topics for PDUs, PMP Prep, and PgMP Prep. See John’s related article on Program Management , with a nice graphic on the topic, at John’s blog, PMcrunch.com.
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A SYSTEMS APPROACH IN ANALYSING MATERIAL CONSTRAINING FACTORS TO CONSTRUCTION PROJECT MANAGEMENT SUCCESS IN  NIGERIAN.

By; Dr. C.C Nwachukwu ANIVS, FCRMI, Lecturer, Project Management Technology Department, Federal University of Technology Owerri, Imo State, Nigeria, West Africa. GSM; 08033289740, E-Mail; nedumchisma@yahoo.com

ABSTRACT

The study analyzed materials as an integral part of the direct and indirect factors that constrain project management success of public and private sector construction in Nigeria using systems approach. This study is very relevant as any constrain to the success in the construction sector has a significant effect on the overall economic growth of the nation. Data analyses were computed based on the subjective data on the factors Relative Relevance Indices of Attributes. Factor analysis was used to collapse the factors to fewer but interrelated variables. The result of the analysis of material factors will lead to the development of a computer model and advanced project management software that will include materials as an efficient instrument in tracking projects alongside with Time and Cost variables.

KEYWORDS

Material Constraining Factors, Systems Relative Relevance Attributes, Public and Private Sector Construction.

INTRODUCTION

Construction industry could been ranked among the top four out of about twenty economic sectors in terms of inter-sector linkages. The importance of this sector as an agent of development is enhanced by its ability to provide gainful employment for the teeming population of the nation. To this end therefore, the strategic importance of the construction industry in a growing economy like Nigeria cannot be over-emphasized as we have seen that the industry account for a significant percentage of the nation’s Gross Domestic Product and employs a substantial fraction of the labor force. Construction industry is a major index as a factor in the social and political integration of the society and ranks as one of the major budgetary areas of developing economies. The construction industry is proven to be the corner stone and bedrock of rapid economic growth of any nation (Bhavesh, 2006). This is underscored by the fact that capital projects in Nigerian budget mostly represent over 40% of the total projected expenditure in both Federal and state governments annual budgets and also in the nations various development and rolling plans. The product of construction industry is desired not for the services  they create as commerce and industry have a structural base. According to Eric, 2003, “the industry is likely to remain a major area of development activity as the need for the provision and replacement of infrastructure become more relevant  in the years ahead”.

This study is limited to material factors constraining construction project management success in Nigeria. Project success constrains as a system are inter-related and have significant effect individually and collectively on both public and private sectors of the economy.

OBJECTIVE OF THE STUDY

The study is aimed at identifying and analyzing material constraining factors to project management success of both private and public sector construction in Nigeria. The analysis will reflect the strength of each factor and the rate at which it influences failure, abandonment and collapse of construction  projects in Nigeria. The result of the findings if implemented is expected to reduce the rate at which projects fail in Nigeria if not eliminating them.

METHODOLOGY

Data for the analysis was through direct and indirect sources. A five point-Likert scale format was used in the questionnaire design. Factor analysis was used to collapse the variables to fewer but interrelated variables. The ANOVA was used to confirm the differences in the level of relevance of these factors constraining project success. The analysis focused on cost related constrains  in the construction of Ten building structures housing Imo State secretariat Owerri by Ten different construction firms, the construction of Owerri Onitsha road that is still ongoing and the construction of Oceanic bank building along Douglas road Owerri, all in Eastern Nigeria, West African Sub-Region. The analytical formula is RRId = ?ci/CI x 100.

HISTORICAL BACKGROUND OF THE STUDY

The modern concept in the history of construction industry increased the responsibilities of human resource management especially in materials procurement which is evidenced in increased contractor’s managerial role. The Latham Report in 1994,  the Egan Report in 1998, and the result of the Rethinking Construction  helped in galvanizing the pace of change in materials substitution in the construction industry. The report called for a ‘radical change to the processes of specifying material requirements in  construction project design, procurement process, storage and instalation. The four ‘key elements’ of product development, project implementation, partnering the supply chain and the production of components should be subject, it said, to innovations resulting in integrated project processes. Most importantly, the report urged the development of a culture of performance measurement in material handling so that the efficacy of such innovations could be evaluated and continuous improvement promoted. Seven targets were set relating to improvements in cost, time, predictability, defects, accidents, productivity in material management.

The evolution of sophisticated construction materials and the effect of communication in enhancing marketing strategies is a possitive index in its avialability. However, the available construction materials to choose from are many; some of the materials are new and have not been tested. Stringent rules are now being required, for example to meet environmental protection law prescriptions. Methods of construction have changed over the years from mere lying of bricks and blocks to sophisticated complex concrete and steel constructions both in-situ and fabricated. These methods require different management systems approach than the conventional methods could cope with.

THE IDENTIFIED MATERIAL RELATED FACTORS CONSTRAINING PROJECT MANAGEMENT SUCCESS IN PUBLIC AND PRIVATE SECTOR CONSTRUCTION IN NIGERIA ARE:

*Incomplete detailed information on material installations and functional life of  the materials.

* Delays in material procurement caused by the client, project team, and or contractors and its implications on construction cost and time.

*Lack of detailed information on weather effects of some construction materials and their implication as regards installation, duration, maintenance capabilities especially foreign procured materials.

* Effective and efficient management of procured materials on site, Inadequate or incomplete specification on design and documentation.

* Initial cost estimating errors on materials type, quantity and quality.

*Attitude of project team and client towards material control and monitoring on site during construction.

* Forecasting the inflation effect on materials at the conception and planning stages.

* High cost of basic building materials and their effect in causing construction projects delays and abandonment.

* Bribery and corruption as they affect cost of materials procurement.

*Inadequate established and systematic materials Cost control procedure for the project design and construction.

* Computers rarely employed for measuring the weight and quality of materials. *Critical and crucial issues like personnel motivation that will affect materials design, procurement and storage are not usually considered and clearly specified. *Lack of adequate information on health implications of some materials on end users and handling process during installations.

* Minimising specialist work, promoting Prime cost on provisional sums for some materials.

* Specialist work on some material installation are not well defined early in the project.

* Clarity of design brief and minimum design gap on materials.

THE RESEARCH MODEL

The model in figure 1 consists of direct and indirect variables developed as a holistic approach to solving the problem of project management success constrains in the construction industry in Nigeria. This study is based on the analysis of only material factors as a subsystem of the general presented system. The arrows in the model show how the variables interrelated and are intra-dependent. To this end, it shows that any factor that affects a subsystem variable will invariably affect every other factor from that system and also from other subsystems.

TIME SUBSYSTEM

SUBSYSTEM

CLIENT SUBSYSTEM

SSSSUBSUBSYSTEM

PROJECT MANAGEMENT SUBSYSTEM

SUBSYSTEM

ENVIRONMENTAL SUBSYSTEM

CONSTRUCTION

SUBSYSTEM

DESIGN  SUBSYSTEM

SUBSYSTEM

QUALITY SUBSYSTEM

SUBSYSTEM

Figure 1 THE CONSTRUCTION PROJECT MANAGEMENT SUCCESS INTERACTIVE MODEL composed by the researcher

Principal Factor Loadings of Public and Private Sector in the Materials Subsystem Variables and there RRIA.

Table 1 Factor loadings

Common variables

Public

Private

Factor 1

Fluctuation in the cost of materials

Inadequate storage facilities, ambiguous material specification during design.

Initial material cost estimating errors

Attitude of project team towards material wastage.

Forecasting the cost effect of a decision before implementation on material substitution

Inadequate established and systematic  material cost control procedure

Critical and crucial issues affecting materials not considered

Inadequate planning on alternative materials

Minimizing specialist work prompting provisional and prime cost sums on materials

Clarity of design brief and minimum design gap

0.51628

0.66515

0.54089

0.61521

0.60849

0.66303

0.64086

0.65712

0.61150

0.49967

0.50220

0.69005

0.55518

0.5782

0.64619

0.66445

0.63301

0.67830

0.54593

0.48571

Unforeseen circumstances

High interest rates on loan facilities for material procurement

Bribery and corruption

Minimizing claims through thorough understanding of contract conditions

Ability of design to achieve economy on materials

Frequent change orders/variations with financial implications

Construction delays

Cost control during design stage

0.58869(4)

0.47275(3)

0.37300(5)

0.50749(3)

0.54449(2)

0.54988(2)

0.52056(2)

0.46890(2)

0.56538(2)

0.54608(1)

0.61019(1)

0.50174(1)

0.69529(1)

0.585509(1)

0.595144(1)

0.54362(2)

0.55482(2)

0.51020(2)

Source: Computer Analysis of the study

ANALYSIS OF THE VARIABLES

In the material subsystem, three principal factors having eigenvalues greater than 1.0 were obtained in both  public and private sector projects For the purpose of extraction of relevant factors for computation, only those factors greater than 0.400 were considered. In addition, the various factors were given descriptive names on the basis of their most basic variables that is, variables with the highest loadings. It will also be noticed that a number of variables load higher than one. For the purposes of loading extracted factors, variables were grouped with factors where they have the highest wieght.

Table 2 Eigenvalues greater than 1.0, percentage variance and cumulative percentage

A – PUBLIC

B – PRIVATE

Factors

Eigenvalues

Percentage variance

%

Cumulative percentage variance

Eigenvalues

Percentage variance

%

Cumulative percentage variance

%

1.

2.

3.

4.21470

3.42151

2.36102

17.7

10.1

8.3

17.7

29.4

51.1

3.61363

3.16195

1.45613

23.1

14.1

5.8

23.1

54.4

61.3

Source: Computer Analysis of the study

Table 3 (A,B) Variable groupings into dimensions using principal factors

A – Public sector construction

Factors                  Extracted variables and their loadings                       No of variable L/D                   Factor Name

Per factor

1     M2         M5          M6       M7         M8       M11         M13       M14         10                     Thorough detailed scope definition,

0.51628 0.66515 0.54089 0.61521 0.60849 0.66303 0.64085 0.65712                               adequate planning & attitude

M15         M16                                                                                                            towards material management

0.61150  0.49967

2           M1         M3           M17           M1          M198                                        5         Effects of material procurement and

0.52056   0.46898   -0.54449   0.54988   -0.56538                                                    storage, delays & uneconomic use.

3        M9               M12                                                                               2                   Fluctuations on the cost of materials

0.47275     0.50749                                                                                                     and variance in quality.

4       M4                                                                                                     1                   unforeseen circumstances

0.58869

M10                                                                                                1           Bribery and corruption in procurement processes

0.37380

Sources  Computer analysis of the study

B – Private sector construction

M2            M4          M5         M6         M7      M8      M9      M10            16                Detailed scope definition & planning 0.50228  0.54608  0.69005 0.55518 0.65782 0.4619 0.61019 0.50174                            material procurement and storage

M11      M12          M13       M14       M15        M16   M17        M18

0.66445 0.69529  0.63301 0.67830  0.54593 0.48571 0.58509 0.59594 M1             M3         M19                                                                 3     Cost implications of variation in material variations -0.54362  -0.55482   0.51020

3      -               -               -               -               -               -        -               -                   -

Source: Computer Analysis of the study

RESULTS OF FACTOR ANALYSIS OF PUBLIC MATERIAL VARIABLES

It is interesting to see that 4 of the 6 attributes defining this dimension are related exclusively to the early definition stage of the project, while only two relate to the other stages. These are “Fluctuations in materials cost” and “Attitude of project team towards material management”. The second attribute is also very important in the definition stage since the attitude of the client and the project team towards material management at the early stage has marked effect on the achievement of the project goal. Attitudes of the client and project team towards material management are very important. Fluctuation in materials cost is another variable that load in the first sector. Materials could be bulk purchased, payment and procedure for fluctuation payment or non-payment incorporated early in planning at conceptual stage. The second factor identified as “cost effects of materials variation, delays and uneconomic  material specification in design” is defined by 5 variables, 2 of which load positive while 3 load negative on the factor, 4 variables have factor loadings exceeding 0.5000 while 1 variable loaded less than 0.5000. These variables include; frequent change orders, delays, claims minimisation, design economy and design stage cost control. This factor accounts for 12.1% variance explanation with Eigen value of 2.24. Frequent change orders and variations in materials procurement loaded fourth.Factor 2 variation have direct and indirect effect on material wastage. Direct, in that quality of materials, labour and plant are affected or altered indirectly, it has also a disruptive effects on the schedule which further affect cost. This variable, endemic in the Nigeria public sector construction, has its root in the inadequate scope definition during the conceptual stage and therefore, relate to the factors as described above.

Extracted Variables and their loadings

No of variables L/D per factor

Factor Name

1.

M15 0.64065

MC16

0.58676

M17

0.76118

M18

0.73077

M 19

0.68088

5

Detailed specification of material requirement & early supply planning.

2.

M1

0.62969

M2

0.76537

M3

0.59939

M5

0.59243

M13

0.51608

M14

0.68307

6

variations on quality specifications of materials

3.

M6

0.76067

M7

0.53492

M8

0.60394

M9

0.67423

4

Interest  rates on loan for material supply & efficient control on use.

4.

M11

0.57173

M12

0.76432

2

Initial material cost estimating errors

5.

M4

0.61636

M10

0.57842

2

Unforeseen circumstances & bribery & corruption

Table 4 A – Public Sector factor Analysis

Source: Computer Analysis of the study

Results of Private Sector material subsystem factor analysis

In the private sector materials subsystem, 5 factors accounted for 62% of the variance explanations in the total data input extracted.  For details of their factor loadings, Eigenvalue of proportion of variance explanation per factor,  greater proportion of variance is therefore accounted for by the factors in the private sector than that in the public sector construct5ion.

The Dominant factor, one, explains 33% of the variance as against 27.7% in the public sector. But unlike the public sector, which has 10 variables, this factor has 16 variables loaded on it out of the 19 variables. The public and private sectors have 10 common variables loaded on the dominant factors. Material planning during design stage loading higher in the private sector shows the importance of this variable in this sector. Effective material planning at an early stage is a pre requisite to staying within budget once all the factors affecting cost during execution stage will be taken into account and provisions made for them. There is however, tendency of project team members to deliberately underestimate the material content of a project in order to get a go ahead approval from the authorities as a quotation strategy. From the private sector factor analysis, the second factor has three variables loading on it, 2 negatively and one positively. The negatively loading variables are “frequent change orders/variations of materials with its financial implications” and “construction delays” based on unavailability of ordered materials. The positively loading variable is “material planning and control during design stage”.

Table 4B– Private Sector Factor Analysis

Factors

Extracted variables and their loadings

No of variables L/D per factor

Factor Name

1.

M6

0.79724

M7

0.57957

M8

0.56280

M10

0.62932

M11

0.53132

M12

0.56207

6

Systematic materials procurement and control procedure

2.

M15

0.69186

M17

0.71451

M18

0.57367

M19

0.77705

4

Detailed scope definition of material requirements & early design cost planning for material shortage

3.

M1

0.68853

M2

0.83431

M3

0.80075

MC9

0.52054

4

Cost effects of fluctuations, delays and variations in the use of materials

4.

M5

0.55708

MC13

0.75255

M14

0.53159

3

Poor material inventory control

5.

M4

0.57955

M16

0.66652

2

Weather effect on materials

Source: Computer Analysis of the study

The first part of table shows the comparison between the public construction sectors in the terms of the principal loadings of various variables. The 10 variables common to both sectors are loadings on factor 1, which show that the loadings are generally similar in 14 out of 19 variables. The second factor is defined by 6 variables, one loading very high and the other 5 moderately high. The variables that load highest are fluctuations in materials labour and plant costs (inflation). The variable is a very significant factor causing materials constrains in the public sector construction. The next highly loading variable is inadequate planning followed by frequent change orders and variations with their financial implications. Construction delays and inadequate or incomplete design have approximately equal loading 0.59939 and 0.59243 respectively. The variable that is least loaded on this factor is the critical and crucial issues that will affect materials supply and use. Factor 2 is therefore termed “inflation, variations and poor planning”. Comparing this with corresponding factor 2 (principal factors), 5 variables are common to both factors. Factor 3 has four variables loading on it against 2 variables loading on factor 3 using principal factors. The four variables include initial material cost estimating errors, attitude towards material wastage by project personnel, ambiguous materials specifications during design and interest rates on loan for materials procurement. The variable common to the two factors is high interest rates. This factor is therefore termed “interest rates, attitude, and efficient cost control “The fourth factor is defined by only 2 variables, inadequate established cost control procedure on material procurement. The corresponding factor 4 using principal factors has only one variable loading on it (unforeseen circumstances) thus; there is no common variable between the two factors. The fifth factor is also defined by 2 variables, unforeseen circumstances-likelihood of unexpected events in the employers risk area and bribery and corruption. It is interesting to note that the corresponding factor 5 using principal factors, has bribery and corruption as the only variable loading on it.

CONCLUSION

Material s, I suggest should not be regarded as having been taking care of by cost. The four direct factors of Time, Cost, Quality and Materials management are interwoven, interrelated and should be checked as critical factors that constrain success in any construction project management irrespective of the magnitude of the construction work. We know as project stakeholders that delay in material procurement, inventory practices etc could prevent the commencement of a critical activity and invariably affect cost in all its ramifications. In a long run, health implications of a construction material may affect the value of a constructed property like the use of asbestos material in roofing and ceiling. Also, the inability of analyzing weather implications of some local and imported materials will definitely affect the maintenance of the constructed structure. Some materials expire during the implementation process of the construction project and the replacement will definitely affect construction time, cost and quality of work.

RECOMENDATIONS

Materials specification and analysis should be seen as a significant index in appraising project proposals. There should be no ambiguity in material specification in project design especially for complex prosals. Project stakeholders should see  material factors as part of direct factors that must be watched carefully for project implementation to succed. The result of this analysis of materials factors will lead to the development of   a computer model and an advanced construction project management soft ware that will include material handling and substitution as an efficient instrument in tracking projects alongside with time and cost

Computer based project management techniques should be used in analysing cost schedules, tracking and smoothing of activities during project executions.

A project manager should be appointed early enough in the project life cycle to handle the management from inception to completion. This project manager, in conjunction with the design team members should define the scope of the works in detail in terms of material alternatives.

REFERENCES

Ashley, D.B and Lurie, L.S. (2004) Determination of Construction Project

Success, Project Management Journal, Vol. XVII No. 2. PP146

Baker, M .L (2002) Materials Management  Systems Analysis and

Project Management, Vol 4. No 8.PP  45.

Bhavesh, .M. P (2006) Project Management Strategy Financial Planning,

Evaluation and Control, New Delhi, PTV Ltd.

Cleland, D.I. and King, W.R.  (1988) Project Stakeholders Management, Project

Management Journal, Vol. 17, No.4. PP 36

CLELAND, D.I (1986) Project management Handbook, Second Edition, New

York, U.S.A Van Nostrand Reinhold, PP 964

Dugun, S.L. and Barry, B.U. (2006), Construction Planning Effects. Journal of

Construction Engineering and Management. Vo. 115 No. 1 PP 70.

Eric, C.E., (2003) Facility Design and Management Hand book, London,

McGraw-Hill, PP 531

Harold, K. R (2004) Project Management A Systems Approach to Planning,

Scheduling and Controlling, New Delhi, India. S.K Jain Publishers,pp68

Macomber, E.A (2008) “Reforming Project Management”

http:///weblog.halmacomber.com// 5/4/2006

Milosevic, D.Z. (2007) Systems Approach to Strategic Project Management.

International Journal of Project Management. Vol.7 No.3. PP57

Ninos, G.E. and Wearne, S.H (2005) “Control of Projects During Construction”.

Proceedings of Institute of Civil Engineers, Part 1, 8th August 80

Engineering Management Groups:PP 913.

Nwachukwu, CC (2008) Analysis of Factors that Constrain Project

Management Success of Public and Private Sector Construction in

Nigeria, An unpublished Ph.D Thesis, Federal University of

Technology Owerri.

Roy, P.D. (2005) the Construction Project Manager and Human Group Theories Cost Engineering, vol. 31 No. 7PP10

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Risk management, as the term implies, focuses on managing the risk. While the approach deals with all kinds and levels of risk, specific attention is logically devoted towards management and mitigation of risk arising from uncertainty embedded in the project. This is accomplished via a host of established strategies, deployed in a sequential manner. Risk management is an overall term, which is often sub-divided by various organisations and departments to ensure respective suitability. Examples could be a financial risk or say a legal risk. However, the term has a wider perspective and while it is not practical to cover it all here, this article follows a controlled approach and thus highlights upon the nitty-gritty of project risk management.

The Process of Project Risk Management

Risk management and thus project risk management is a comprehensive process aimed at risk identification, planning stages post risk identification, defining the essential activities to be undertaken, and therefore lessening of the recognised risks. While relating particularly to the project risk management perspective, activities begin by planning the risk aspect in relevance to the project under consideration. The plan is comprehensively defined to include even the most basic of tasks, essential for project completion. The idea is to plan risk management for the project. The next stage focuses on project risk identification.

Risk identification is a task responsible for recognising the potential risks and naming them. A risk manager could be appointed at this stage, who would be responsible for identification, input compilation and appropriate documentation for further stages. While identifying the project risks, risks can be divided into two categories: generic risks, which are almost universally applicable; other risks, which are the specific project risks. The other crucial tasks, which ought to be conferred due attention at this stage, relate to narrowing down to the precise cause of identified risks, and working out the possible impact the defined risks would pose.

What follows in the process of project risk management is the requirement to quantify the risks and the associated impact. Tools like probability, sampling and other statistical methodologies can be deployed to get precise results. Risks with these techniques can be classified in various categories, for example: impact, those requiring immediate attention, unavoidable, etc. The course to follow would vary with the categorisation.

Once the risks have been identified and quantified, it is now about working out the response. Project risk management aims at deriving reasonable solutions, which could be reworking the subtasks confronted with risk and thus avoiding the risk or perhaps eliminating the risk cause. Accepting and thus providing scope for the risk is also an option.

Controlling Risk

A proactive approach would be to control the risk element. This is enabled by closely understanding the requirements of the project. If the requirements are well understood, chances of incorrect objective statement and related threats can be suitably controlled. To ensure specific understanding it is essential to make room for the customer’s requirements as well. The requirements of the project ought to be quantifiable and realistically defined. Also they must be in line with the company’s overall purpose of existence. And then of course, the most important aspect is to be ready with an alternate course in case of severe threats.

Conclusion

Risk management and therefore project risk management is a continuous process, which begins with the project and continues throughout. It takes a careful examination of understanding whether there has been enough precaution or if more needs to be done to prevent harm occurring. All companies should have a project risk management program in place to prepare them for all eventualities.

Kelly Bendall wrote the article ‘The Specifics Of Project Risk Management’ and recommends you visit http://www.afaprojects.com for more information on Management of Risk courses.
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What are your thoughts on the subject?

You will often hear about the Project Risk Log and how important it is to the successful delivery of a project. Apparently this one document contains all the risks surrounding the project and enables them to be mitigated to ensure they don’t impact the delivery should they occur. Well that’s the theory anyway. The practice is of course very different.

You soon realise this as a Project Manager when attending your first Risk Workshop. Loads of people attend, few of whom you know, and all are frantically typing down any and everything imaginable. It is when the Workshop starts going through everything detailed that you feel your heart sinking as you discover the only risk known to mankind not listed is the one involving the possibility of a meteorite hitting earth and wiping out all the programmers!

Before you know it you have four hundred project risks listed and no way of reducing them. Worse still, all of these will have to be regularly maintained and updated. It basically becomes a major work overhead which you could easily do without.

And yet the obsession with risk continues. It has almost become something of a way for workstreams to make excuses upfront for their lack of delivery, because instead of forcing them to get their tasks done, it offers them a way out. So for example if there are potential resourcing issues, you want your workstream leads to find a way to resolve this rather than writing it down as a problem and washing their hands of it.

Despite this, an entire cottage industry appears to have grown up around this whole project area, very little of it devoted to ensuring the correct information is documented and mitigated. I know this from first hand experience. In a recent project I managed over three hundred were raised. They ranged from the valid to the most mind boggling. Despite this when the project was cancelled not one risk had been written down which covered the reason; that the credit crunch might force household incomes down and hence make it a bad time to increase product prices.

From my perspective there is definitely a key role to play in a project with regard to risk documentation, management and mitigation. The problem is that this has to be done correctly and in an effective way. If not then maintaining a log becomes an overwhelming task and ends up with the Project Manager forgetting about the actual delivery of the project. This soon leads to scope creep, budget overspends and eventually project failure.

my-project-management-expert.com details what the vital project risks are which you must raise and also how managing project risk will help you deliver a successful project.
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When I tell people that I’m a Project Manager, I often get an initial “Oh….neat!” response which is usually followed by a comment that is something along the lines of “So….what exactly do you do?” Occasionally if I’m speaking with a Software Developer I may get a mild snarl, a clear sign they’ve had experience working with a poor project manager; a topic I will address in future articles.

What this tells me is that not only is there a ways to go before the practice of Project Management is understood; but even further to go before it is valued more widely than it is now. For how can something be properly valued if it isn’t truly understood?

This is of course not to say that the practice of Project Management isn’t widely appreciated in many organizations. Indeed, a large number of companies have implemented Project Management Offices, the Project Management Institute is exploding in popularity, and it certainly seems that the number of Project Management openings out-numbers the supply of Project Managers. However, it is often times larger organizations that have adopted this practice, and in an economy where just under half of the work-force is employed by small businesses there are a significant number of organizations that have never used Project Managers, and even more employees that have never worked with a Project Manager. Ironically, it is small businesses that could quickly and painlessly reap the benefits of Project Management.

So what exactly is Project Management an what does a Project Manager do? According to the Project Management Institute (PMI) “a project is a unique temporary endeavor, with a set beginning and end.” and that “More formally, PMI defines project management as ‘the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project.’” This second part may not tell you much without diving further into the subject; but let’s focus on the former for now. In order to understand Project Management, it is critically important to understand that a project is a unique, temporary endeavor with a specific objective. Project Management is not Operations. And while a specific operational objective may be a project, and a project upon completion may be handed over to operations, the two are distinctly different.

Now that we’re clear on what a Project is, we can move onto the more formal definition quoted above. Essentially, this is saying that Project Management is the methodology used to achieve the objective of a project. Therefore, a Project Manager is someone that has the necessary “knowledge, skills, tools, and techniques” to manage a unique endeavor and ensure that it meets it’s objectives.

Even knowing all this, it still may not be clear to you what exactly a Project Manager does. A project manager is a little like the manager of a baseball team. They make sure that the objective is clear, that it is understood by everyone on the team, that all parties (stakeholders) have had input into the project, that all the required work is understood, that each team member knows what they are responsible for, ensures that risks are identified and contingency plans have been created, verifies that all work is being completed on schedule, etc, etc, etc. The list of course goes on and on. The reason I like using the analogy of the baseball manager though is because when some people hear what a Project Manager does, they feel they shouldn’t even need a project manager. They initially think that if everyone on their team did their job the project would be successfully completed even in the absence of a Project Manager. This can only be true however in the same way that a baseball team doesn’t need a manager to play a baseball game. It could be done, and they might even win some games, but they won’t win the World Series. The same is true with projects. In the absence of a Project Manager there are certainly some items that will be accomplished; it is certain however that there will be delays, cost overruns, quality will suffer, and that the end result may be quite different than what the project called for. Ultimately, Project Management matters for the same reason management matters in baseball; because whether it’s a baseball game or introducing a new product or service, winning matters.

Andrew Wicklander, PMP, is the CEO of Ideal Project Group. Ideal Project Group offers professional project management services for companies ranging from small software development firms to large international enterprises. www.idealprojectgroup.com
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What do you think? Please comment below to tell me.

A Guide to the Project Management Body of Knowledge (PMBOK Guide) is universally recognized as the standard for project management methodologies and practices. Project managers routinely use the PMBOK® as a reference for accepted tools, knowledge, and processes in order to ensure the successful completion of a wide range of projects. The PMBOK is also the industry standard which candidates must study and possess a functional knowledge of when preparing for Project Management Professional (PMP) and Certified Associate in Project Management (CAPM) certifications. Since its creation the PMBOK has undergone several revisions the most recent of which is the 4th edition. Although much of the content is the same as in the 3rd edition, there are some significant changes regarding clarity and improvement.
 
The 4th edition of the PMBOK reflects a focused effort to provide more clarity in various aspects of project management practices while reducing ambiguity and redundancy. There are several areas where this is evident. First, in order to remain consistent, all processes are now annotated in a verb-noun format (i.e. Define Activities, Develop Schedule, Plan Quality, Verify Scope, etc). In such a dynamic discipline as project management it is imperative to maintain as high a level of consistency and simplicity as possible. Adding to its simplicity, the 4th edition has also grouped corrective action, preventive action, defect repair, and requested changes under the heading “change request”. The purpose of this is to provide visibility of these change requests while allowing an easier understanding of the project management processes.

It is important for a project manager to have a comprehensive understanding of the processes involved with successful project management. In order to help with this the 4th edition of the PMBOK has focused more on clarifying process interactions. By more clearly explaining process inputs and outputs with aid from the PMBOK’s new data flow diagrams-which replaced process flow diagrams-and the relationships between these processes, the project manager will have a better understanding of how to use these tools to his or her benefit.

Another important clarification is the distinction between the project management plan and the various project documents the project manager may utilize in helping manage the project. An example of this is that previously a change log may have been mistakenly grouped into a project management plan. The PMBOK® now makes it clear that while change management is an important part of a project management plan, a change log is a project document and should not be included in a formal project plan.

Additional clarification was made to the PMBOK® by more clearly differentiating what contents of the project charter and scope statement are required. Previously, these documents may have shared some commonalities as there was no clear distinction between required content. As projects progressively elaborate-or become more defined as they move forward-what is annotated in the charter will evolve and become evident in the project scope statement. This progressive elaboration is an important part of project management and the PMBOK has done well by making this consideration while defining more clear boundaries between these two documents.

Perhaps the most significant difference between the 3rd and 4th editions of the PMBOK is the addition, consolidation, and removal of several processes. The processes of Develop Preliminary Scope Statement (Project Integration Management Knowledge Area) and Plan Scope (Project Scope Management Knowledge Area) were removed in the 4th edition. Processes which were added include Collect Requirements (Project Scope Management Knowledge Area) and Identify Stakeholders (Project Communications Management Knowledge Area). Within the Project Procurement Management Knowledge Area the six processes were consolidated into four. These process revisions represent bold changes between the 3rd and 4th editions of the PMBOK. However, by renaming the processes in verb-noun format, removing those which were redundant or unnecessary, adding where needed, and consolidating others, the 4th edition of the PMBOK represents a significant improvement and another step in the right direction for project management.

Another improvement added to the 4th edition of the PMBOK is Appendix G which contains a list and discussion of interpersonal skills needed to successfully manage projects. While it is arguable whether or not these skills can be learned through training and practice or whether one is born more adept at these soft skills, it is clear that they are necessary in effectively managing projects and project teams. Their inclusion in the PMBOK is an improvement because they indicate areas in which project managers must maintain their focus while interacting with their project teams and stakeholders.

While the release of the 4th edition of the PMBOK was a step in the right direction for project management it was also part of a larger picture and not the only book of standards PMI released. Concurrently with the PMBOK fourth edition PMI released The Standard for Program Management 2nd Edition; The Standard for Portfolio Management 2nd Edition; and Organizational Project Management Maturity Model (OPM3) 2nd Edition. The release of these four standards represents an effort to relate methodologies between and among these various levels of project and program management in a clear, consistent, and comprehensive manner. These standards of basic project management, program and portfolio management, and organizational project management, along with consistent language, terminology, and practices provide an umbrella under which practitioners of the project management profession can operate with awareness, clarity, and confidence.

In addition to the professional content contained within the PMBOK there are some other characteristics of the book worthy of discussion. First, the book maintains its quality of being easy to read and understand. The fonts and graphics used in the book are clearly visible and the reader will find them easy to follow. Additionally, the data flow diagrams at the beginning of each knowledge area chapter are much easier to follow and understand than the 3rd edition’s process flow diagrams.

Another nice characteristic is the ability of the reader to take notes in the margins which provide very adequate space. One characteristic that should be improved is the soft cover of the PMBOK. With the cost of the book at $65.95 through PMI (or $49.50 for PMI members), a soft cover is hardly adequate to protect such an investment and valuable reference tool. Some simple internet research also found that the book can be purchased for $41.55 through Amazon.com with free shipping. This is certainly the most affordable price found online though, perhaps, it can be purchased secondhand or from a used book store for less.

One reason for the explosive growth of the project management profession is the degree to which the practices and methodologies have evolved. The revisions in the 4th edition of the PMBOK® represent the efforts made by its governing body, PMI, to remain proactive in a cycle of continuous development and improvement. The utility of effective project management has been realized throughout every industry and market segment. By including feedback from its practitioners in this improvement cycle the project management industry will continue to effectively evolve through its refinement of standards, tools, and practices.

About the Author
Mark Piscopo is the founder of ProjectManagementDocs.com, a website dedicated to advancing project management through the distribution of free project management tools, templates and educational material. Visit www.ProjectManagementDocs.com to download free PMBOK based project management templates, tools and educational articles.
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On March 5, 2008, the Maine Land Use Regulation Commission (LURC) unanimously voted to approve the zoning change and preliminary development plan sought by TransCanada for its Kibby Wind Power Project.  When operational in 2009/2010, the Kibby Wind Power Project, located in Kibby and Skinner Townships in the Boundary Mountains in Franklin County, will produce approximately 132 megawatts of electricity, making it the largest wind power generating facility in New England.  The electricity generated from the Project will serve the electricity needs of approximately 50,000 Maine homes.  The LURC rezoning signifies a major regulatory step towards the Project’s success.

In January, the LURC Commissioners voted to direct its staff to draft the approval document.  During its January deliberations, LURC Commissioners complimented TransCanada on its application, with one Commissioner stating that TransCanada had “set the standard” for successful completion of a wind power project application in Maine.

Because the transmission line passes through several jurisdictions, it has required the approval of multiple local and state permitting authorities.  On October 12, 2007, the Department of Environmental Protection issued a Site Location of Development Law (Site Law) and Natural Resources Protection Act (NRPA) permit for the transmission line sections located within the organized towns of Eustis and Carrabassett Valley.  On February 28, TransCanada received approval from the Town of Carrabassett Valley for a portion of the transmission line located in that town.

The permitting process is still underway.  In April, TransCanada submitted its final development plan to LURC and anticipates that the Commission will complete its review this summer.  Approval of the final development plan would constitute the final step in the LURC permitting process.  TransCanada has also submitted an application to the U.S. Army Corps of Engineers, which is reviewing the project’s impacts to wetlands under Section 404 of the Clean Water Act, and is in the process of obtaining other local permits.

The Kibby Wind Power Project will support Maine’s twin goals of energy independence and greenhouse gas reduction, while helping to stabilize regional electricity costs.  These State goals were highlighted in the recently released Governor’s Wind Power Task Force report, which called for at least 3,000 MW of wind to be constructed by 2020.  Construction of the Kibby Wind Power Project is expected to begin later this year once all permit approvals have been obtained.

Verrill Dana’s permitting team on the Kibby Wind Power Project is led by Juliet Browne, Chair of the Firm’s Environmental Law Practice Group.

About Verrill Dana:

Verrill Dana, LLP is a full-service law firm with more than 100 attorneys conducting a nationwide practice from offices in Portland, and Augusta, Maine; Boston; Hartford; and Washington, D.C. To learn more, visit our website at www.verrilldana.com.

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