mba viva slides (scm009432) (1)

Student: Ang Tze Wei (SCM-009432)

Supervisor: Dr David Goh

May 2014

MBA(GM) Viva

Topic: “Challenges and Success Factors of

Project Management (PM) Services

in Malaysia Construction Industry”

Contents

1) Chapter 1: Introduction & Background of Research

2) Chapter 2: Literature Review

3) Chapter 3: Research Methodology

4) Chapter 4: Data Analysis

5) Chapter 5: Conclusions and Recommendations

List of References

1) Introduction & Background

In the past, there are number of construction projects in Malaysia which is

not completed in time, not up to industry standard and have quality issues

due to poor workmanship (Chan, 2002).

Example of project using PM services and failed is Middle Ring Road with

more than 7000 cracks and other quality issues, multiple delays, cost over run and

safety issues (The Star, 2008).

As such, effective Project Management (PM) services is crucial in delivering

solution to client and achieving the objectives of quality, scope, time, cost,

sustainability and safety.

1) Introduction & Background

Research Problem:

What are the challenges and success factors of Project Management

Services in Malaysia construction industry?

Research Objectives:

1) To identify the roles and responsibilities of PM companies.

2) To determine and analyse the challenges or problems faced by PM

Services provided.

3) To identify the success factors of PM services in the construction industry.

2) Literature Review

Malaysia Construction Industry:

Snapshot of Malaysia Economy and Construction Sector GDP

Construction Sector 15 to 22% of GDP


Market Analysis - Malaysia Construction Industry:

Trends and Value of Projects in Malaysia Construction Industry

Constructions Projects valued at RM 75 to 95 Billion from 2007 to 2011


Construction Industry- Moving Forward

(Economic Transformation Plan- ETP):

Estimated Total GDV of more than 230 Billion

Source: Adapted from The Star (2012, 2013)

2) Literature ReviewJustification of the Research:


Project Management Theories / Models

1) Project management is the art of directing and coordinating material and human

resources throughout the project life span by utilizing various management methods

and techniques to achieve effectively predetermined goal of scope, quality, time,

cost and participation satisfaction (Dhillon 2002).


- 42 Project

Management

Processes

- 9 Knowledge Areas

- 5 Process Groups

Project Management

Processes


Comparison Analysis -General Management and Project Management


Roles & Responsibilities of PM


Benefits of having PM Services:

1) Ensures cost efficiency from overall project implementation to completion

2) Saves cost by implementing value management and re-engineering

3) Ensures project are completed on-time or ahead of project schedule

4) Ensures project are completed without compromising quality and safety

5) Ensures projects are implemented in a sustainable nature


PM Services Globally:

PM companies and Project Management Consultancy (PMC) services have

been widely used in other countries such as US, UK and Australia for more

than 30 years (Sugata and Daryl, 2002).

Lend Lease which is founded in 1973 based in Australia with more than 30

years establishment has the core business in property management

services, project management, consultancy and construction (Lend Lease

2011).

In China, PM services or CS (Construction Supervision) was introduced to

improve project quality, minimize cost overruns and time delays (Ministry of

Construction, 1996).

PM Services Malaysia:

Lend Lease has completed more than 100 projects in Malaysia. Major

references are the development of the 88-storey twin towers, one of the

world’s tallest buildings when completed in 1996 (Lend Lease, 2011).


Challenges of Construction Industry in Malaysia:

1) Construction Industry are fragmented- Different activities by different parties

undertaken in isolation. No single party with expertise, skills and capabilities

2) Labor Intensive and dependency on foreign workers- No automated process

3) Industry Image- Tarnished due to non-performing contractors

4) Payment Issues- Slow payments and under payments to contractors

5) Client Expectations and Demands- Higher quality, cheaper prices and on-

time delivery.


Challenges of PM Services in Malaysia:

1) Lack of commitment from clients

2) Lack of knowledge in PM techniques, risk management and financial skills

3) Lack of clear mission of the project

4) Frequent project scope changes

5) Conflicting project objectives

6) Financial Constraints

7) Lack of coordination between team members

8) Lack of relevant and appropriate training

9) Lack of effective way to measure project success and benefits

10) Lack of PM companies resources

Source: Adapted from Zayyana Shehu and Akintola Akintoye (2009)


Success Factors of PM Services:

Five criteria that can be used to measure project success and the criteria are

completed in time, within budget, completed at the desired level of quality,

accepted by the customer and resulted in customers allowing the contractor to

use them as a reference (Kerzner 1998).

Critical factors that may affect the success of PM projects (Young and Jinjoo

1998):

3) Research Methodology

Mixed Research Method chosen

A combination of qualitative or inductive and quantitative or deductive

approaches can build on the strengths and minimise the weaknesses of

both (Steckler, 1992).


Interviews

-Semi structured, involved 2 experts involved with more than 10 years experience in

managing construction projects.

Data Collection -Qualitative

Sample

Interview

Guide


Questionnaire survey

- 35 participants involved in this self administered survey. 5 point Likert Scale are

used for measurement.

- Roscoe (1975) suggests that sample size should be larger than 30 and less than

500.

- Questionnaires are distributed to professional institutions – CIDB, PAM, MIE and

REHDA.

Data Collection - Quantitative

Sample

Questionnaire

Survey


- Triangulation are used to improve the quality of this research.

- Triangulation means looking at something from multiple points of view in order to

improve accuracy (Neuman, 2006).

- The convergence of data enhanced the quality of the study (Yin, 2003)

Ensuring Quality of Research

Triangulation to Improve Accuracy


Research Limitations:

1) Findings, literature review and interviews / interviews are conducted in late

2013 and early 2014.

2) Questionnaire survey are conducted in Klang Valley areas only, due to time

and resources constraint

3) Scope of Research :PM services in Malaysia construction industry only

4) Some respondents (especially professional institutions) withdrawn from

participation due to the information are regarded as confidential. Voluntary

participation is conducted, and ethical considerations are complied.

4) Data Analysis

Interview Analysis with 2 experts

-Body of knowledge gained are also used as basis to develop questionnaire survey.

Opinions, advise and findings of the 2 experts are summarized as below:

Role of PM Companies

Expert 1- To control and coordinate various parties of different expertise such

as Architects, Consultants, Contractor and Clients.

Expert 2- To manage multiple team of contractors, consultant and work together to

resolve issues constructively.

Challenges of PM Services

Expert 1- Difficulty in getting precise input and requirement from client.

Expert 2- No commitment or full support given by the client or related party.

Success Factor of PM Services

Expert 1- PM’s skills, competent and experience.

Expert 2- PM’s experience and skills in coordinating parties involved.

4) Data AnalysisQuestionnaire Survey

- Frequency Analysis & Comparison of Mean Response (SPSS v19)

Section A: Demographics

Majority Respondents are Consultant

Firm (40%) that used PM services in 5

to 10 of their projects (46%).

4) Data Analysis

Section A: Demographics

Majority Respondents have 5 to 10

years working experience (43%) and

having title of Project Engineer (51%).

Questionnaire Survey

- Frequency Analysis & Comparison of Mean Response

4) Data AnalysisQuestionnaire Survey


Section B: Role of PM Companies

4) Data Analysis

Section B: Role of PM Companies

Two ‘Very Important Role”

- Controlling overall

project performance

- Monitor project major

activities and ensures

the required target are

met



4) Data Analysis

Section C: Challenges of PM Services



4) Data Analysis

Section C: Challenges of PM Services

‘Significant Challenges”

- Lack of qualified, skilled

and experienced PM

practitioners in the industry

- Lack of commitment from

client

‘Moderately Significant

Challenges”

- High cost of adapting PM

companies



4) Data Analysis

Section D: Success Factor of PM Services



4) Data Analysis

Section D: Success Factor of PM Services

‘Very Important Success

Factor”

- PM companies’

competence and

experience



5) Conclusion

From the research and findings, the objectives are met and it is concluded

that:

1) Most important Role of PM Companies is to monitor project major

activities and ensures the required target are met.

2) Most significant Challenges of PM services is lack of qualified, skills

and experienced PM practitioners in the industry.

3) Most important Success Factors of PM Services is PM companies’

competency and experience.

In order to ensure PM Services are delivered effectively, continuous

training, education and awareness program to be conducted locally or

abroad.

5) Recommendations

Significance of this Research:

1) Serve as framework and impact on PM practices of Regulatory Bodies

such as PAM and CIDB in Malaysia construction industry

2) Framework and guide for PM companies to improve and gained strategic

advantage over competitors.

3) Guideline to improve corporate governance in PM Companies and

stakeholders of Project Team members

4) Impact on policies to ensure that construction projects are managed,

completed on time, within budget, quality and sustainable.

Future Research:

The findings of this study will be more accurate if conducted with a larger

sample and to cover larger areas in Malaysia to generalize the findings.

List of Reference

Chan, I.P.C., Scott, D., Lam, E.W.M., 2002. Framework of success criteria for design/ build

projects. Journal of Management in Engineering 18, 120-128.

CIDB, 2012. Construction industry development board Malaysia. Construction Statistics, Kuala

Lumpur, Malaysia.

Charted Institute of Building (CIOB) (1988). "Project Management in Building." United Kingdom

(UK), CIOB.

Dahlan, A.N. (2009). The Critical Success Factors for Effective Performance of Malaysian

Government Linked Companies. Graduate College of Management, Southern Cross University

Australia: Unpublished Doctorate Thesis.

Dhillon, B.S (2002). “Engineering and Technology Management Tools and Applications.”

Boston, London, Artech House.

Kerzner H (2009), Project Management: A System Approach to Planning, Scheduling, and

Controlling (10th ed), New York.

Lend Lease 2011. Available at <http://www.lendlease.com>

Neuman, WL 2006, Social Research Methods: Qualitative and Quantitative Approaches,

Pearson, Allyn and Bacon.

Project Management Institute, PMI (2008). “A Guide to the Project Management Body of

Knowledge.” Newton Square, USA, Project Management Institute.

List of Reference

Roscoe, JT 1975, Fundamental Research Statistics for the Behavioural Sciences, New York:

Holt, Rinehart and Winston Inc.

Sugata, Biswas and Daryl, Twitchell (2002). "Management Consulting, a complete guide to the

industry." 2nd Edition, New York, John Wiley & Sons, Inc.

Steckler, A, Mcleroy, KR, Goodman, RM, Bird, ST & McCormick, L 1992, 'Toward Integrating

Qualitative and Quantitative Methods: An Introduction', Health Education Quarterly, vol. 19, no.

1, pp. 1-8.

The Star

4 August 2008

15 January 2012

23 December 2013

Yin, RK 2003, Case Study Research: Design and Methods, Sage, Thousand Oaks.

Young Jang and Jinjoo Lee (1998). "Factor influencing the success of management consulting

projects." International Journal of Project Management, Vol. 16, No. 2, pp. 67-72, Great Britain.

Zayyana Shehu, Akintola Akintoye (2009), Major challenges to the successful implementation

and practice of programme management in the construction environment: A critical analysis,

International Journal of Project Management, Vol. 28, pp. 26-39, Great Britain.

Q & A

Thank You

mba viva slides (scm009432) (1)

Documents

project schedule

example of project

value management

literature reviewpm

literature reviewbenefits

literature reviewjustification

success factors of pm

literature review chapter