Project-based Industries Research Articles

Lean project planning – Bridging last planner system and earned value management

Earned Value Management (EVM) has become a de facto standard for project planning after decades of applications worldwide, and most industry contracts that require some of the reporting features of EVM. However, EVM has shortcomings such as too early release of work and no process perspective to facilitate improvements. The Last Planner System (LPS) was developed to overcome the shortcomings of EVM utilizing insights from lean manufacturing. Unfortunately, LPS has not reached the same level of acceptance as EVM. A new approach, Lean Project Planning (LPP), is developed to take advantage of the strengths of both approaches. In this paper, LPS and EVM are compared to each other, and the resulting LPP is presented. The paper discusses a LPP implementation across the project portfolio at a Norwegian pressure vessel fabrication company. The results show that LPP provided accurate Estimate At Completion (EAC) for both costs and delivery times despite taking on many major Variation Orders. The approach is arguably a step forward for turning plans into planning in project-based industries such as shipbuilding and fabrication of pressure vessels. The complexity of pressure vessel fabrication stress-tested the LPP, and some improvements were identified for future work.

Decentralized project delivery on the crypto commons: Conceptualization, governance mechanisms, and future research directions

This paper presents a first conceptualization for decentralized project delivery through the combination of blockchain technology and common pool resource governance theory, also known as the ”crypto commons”. While previous literature on project delivery models identifies the use of decentralized governance, there is not yet a holistic conceptualization nor a specific overview of governance applications that can be applied. To develop the concept, we use a literature review to synthesize fourteen blockchain governance mechanisms useful for managing the crypto-commons. Subsequently, we use systematic combining to identify twenty-two specific applications for decentralized project delivery in the construction industry, one of the largest project-based industries. Each application is briefly reviewed, and examples of their relevance to realize decentralized project delivery models are provided. We discuss the potential for novel forms of project delivery, but also the need for future research on the applications, as well as on the system level implications, the system design challenges, and the implementation barriers in the specific context of the construction industry. Overall, the concepts and mechanisms presented provide a theoretical foundation upon which future researchers can use to design novel decentralized project delivery models.

A novel cost of quality simulation to better select bidders in public private partnerships projects

Bidder selection is a complex procurement decision that often surfaces in most project-based industries. The widely preferred institutional logic of low-cost bidder causes quality-related issues and poor revenue generation in the operations and maintenance phase. Therefore, the present research aims to evaluate bidder selection using the cost of quality principles. The research framework based on the cost of quality is formulated, and the risk of bidder selection associated with the cost of quality and revenue generation is assessed using @risk simulation software. The revenue generation of the facility is simulated with bid price and cost quality and subsequently validated using a case of a public-private partnership water supply project of Latur City in India. The research contribution entails that bidder selection based on price can be undertaken, provided the bidder has demonstrated evidence of the investment in the cost of quality. The research has demonstrated that the bidders possessing the larger water augmentation capacity and lower cost of quality expenditure are more likely to generate higher revenue than the competing bidders. Therefore, the bidder selection based on price alone will not yield adequate revenue generation during water operations and maintenance phases of water supply projects.

Influence of Human Resources Management Practices on Organisational Performance of Construction Firms in Lagos State –Nigeria

The success of any organisation depends on the effective and efficient utilisation of its human resources. In every project-based industry, such as the construction industry, project performance is tied to the effectiveness of its human resources. Labour turnover in the Nigerian construction industry and the poor performance of the Nigerian construction industry in terms of project delay, cost uncertainty, and quality deficiency is caused by inadequate utilisation of human resources management practices. The study aimed to assess the influence of human resources management practices on the organisational performance of construction firms in Lagos State in order to improve their competitive edge. A quantitative research method was adopted involving administration of 140 well-structured questionnaires to registered construction firms. The results revealed that human resources management practices (selection, training, development and reward) have a positive and statistically significant influence on organisational performance, with a p-value of <.001, <.003, <.003 and <.002 respectively. While the other practices (recruitment and compensation) did not significantly influence organisational performance. This indicates that human resources management practices are important to the success of organisations. Therefore, in order to overcome the challenges of labour dissatisfaction at work resulting from organisational instability, poor working conditions, lack of training, and reducing the low performance of the employees in the construction industry, appropriate and adequate human resources management strategies, policies, and action plan provisions should be put in place in order to improve organisational performance and to maintain competitive advantages.

Gender Inequality in Vertical Career Progression in Project-based Industry

Gender Inequality in Vertical Career Progression in Project-based Industry

Flow like Water: Reallocation of Human Capital Resource in the Project-based Industry

Flow like Water: Reallocation of Human Capital Resource in the Project-based Industry

Selection framework of disruption analysis methods for megaprojects: an integrated fuzzy multi-criteria decision-making approach

PurposeThe purpose of this paper is to propose a decision support framework that can be used by decision-makers to identify the most convenient disruption analysis (DA) methods for megaprojects and their stakeholders.Design/methodology/approachThe framework was initially developed by conducting a comprehensive literature review to obtain extensive knowledge about disruption management and megaprojects. Focus group discussion (FGD) sessions with the participation of the construction practitioners were then organized to validate and strengthen the findings of the literature review. Consequently, 17 selection factors were identified and categorized as requirement, ability and outcome. Lastly, the most convenient DA methods for megaprojects were identified by performing integrated fuzzy analytical hierarchy process (AHP) and fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) analysis. Additionally, consistency analysis was also conducted to verify the reliability of the results.FindingsThe results revealed that the measured mile method is the most appropriate DA method for megaprojects. In case the measured mile method cannot be adopted due to various technical and contractual reasons, the decision-makers are proposed to consider program analysis, work or trade sampling, earned value analysis and control chart method, respectively. Second, the selection factors such as “Comprehensible analysis procedure,” “Existing knowledge and experience about a particular DA method,” “Ability to resolve greater number of disruption events,” “Ability to resolve complex disruption events,” “Ability to exclude factors that are not under the owner's responsibility” and “General acceptance by practitioners, courts, and arbitration, etc.” were given the top priority by the experts, highlighting the critical aspects of the DA methods.Originality/valueDisruption claims in megaprojects are very critical for the contractors to compensate for the losses stemming from disruption events. Although the effective use of DA methods maximizes the accuracy and reliability of disruption claims, decision-makers can barely implement these methods adequately since past studies neglect to present extensive knowledge about the most convenient DA methods for megaprojects. Thus, developing a decision support framework for the selection of DA methods, this study is the earliest attempt that examines the mechanisms and inherent differences of DA methods. Additionally, owing to the robustness and versatility of this research approach, the research approach could be replicated also for future studies focusing on other project-based industries since disruption is also a challenging issue for many other industries.

A Decision Support System for Project Portfolio Management in Construction Companies

Project portfolio management requires a systematic process that comprises assessment of portfolio risk and expected profitability, as well as strategic fit of individual projects with company objectives. After a needs analysis based on literature findings and surveys with experts, in this study, a process model and a tool, COPPMAN (COnstruction Project Portfolio MANagement), were developed to support project portfolio decisions in construction companies. COPPMAN was developed in collaboration with construction professionals. Different from previous studies, it incorporates a portfolio risk and strategic fit assessment model considering project dependencies and integrates knowledge of previous, on-going and potential projects to estimate value of alternative project portfolios. COPPMAN was implemented in a construction company and evaluated as a useful tool due to its features such as knowledge integration, forecasting of portfolio profitability and recommendation of strategies as well as its visualization features. Research design and findings can be used for development of similar tools in other project-based industries.

RISK CAUSATION MODEL TO CAPTURE AND TRANSFER KNOWLEDGE IN INTERNATIONAL CONSTRUCTION PROJECTS

International construction projects are facing various severe risks from country, partner, company, and project. Global contractors have suffered heavy losses. Previous researches have proved that an available organizational risk repository is a reliable knowledge source that can be used to introduce experience-based solutions of how specific risks can be managed in international construction projects. The construction of the organizational risk repository calls for an effective feedback mechanism that dispels the organizational culture of unwillingness to disclose management failure and encourages proactive creation and retention of data and information on historical projects and risk-related knowledge. Hence, this paper proposes a risk causation model for international construction projects (RCM_ICP) to support such a mechanism. RCM_ICP links response measures to the chain of risks to identify management failures and conduct modifications, thereby promoting thinking on the part of the management and capturing key risk management experiences. It includes a category component for the efficient retrieval of relevant knowledge based on country-related factors. Besides, this paper proposes the risk review procedures as the instruction of RCM_ICP. Hence, this research breaks the barriers of sharing information between project and organization levels in a project-based industry.

Gaining lead firm position in an emerging industry: A global production networks analysis of two Scandinavian energy firms in offshore wind power

Global production networks (GPN) research has given limited attention to lead firms’ competitive strategies in emerging project-based industries (PBIs). Informed by the industry life cycle approach, the authors develop a process-sensitive approach that unpacks the black-boxed notion of lead firms’ competitive capabilities development processes to address this gap. The approach is operationalized in the analysis of the evolutionary trajectories of Ørsted (Denmark) and Equinor (Norway) in the emerging offshore wind power industry. Analytically, the authors differentiate between lead firms’ pre-entry, entry, and post-entry scope-related and scale-related competitive capabilities development processes. They demonstrate how these processes are shaped by industry characteristics and co-evolve with broader industry developments and extra-firm dynamics. Through this novel perspective, the paper extends conventional wisdom on the role GPNs as facilitators of knowledge transfer and of local and regional capability formation and development. The authors argue that GPNs can also facilitate both knowledge transfer to and competitive capability formation by (lead) firms.

The risks and opportunities of social procurement in construction projects: a cross-sector collaboration perspective

PurposeThis research addresses the lack of project management research into social procurement by exploring the risks and opportunities of social procurement from a cross-sector collaboration perspective.Design/methodology/approachA content analysis of five focus groups conducted with thirty-five stakeholders involved in the implementation of a unique social procurement initiative on a major Australian construction project is reported.FindingsResults show little collective understanding among project stakeholders for what social procurement policies can achieve, a focus on downside risk rather than upside opportunity and perceptions of distributive injustice about the way new social procurement risks are being managed. Also highlighted is the tension between the collaborative intent of social procurement requirements and the dynamic, fragmented and temporary project-based construction industry into which they are being introduced. Ironically, this can lead to opportunistic behaviours to the detriment of the vulnerable people these policies are meant to help.Practical implicationsThe paper concludes by presenting a new conceptual framework of project risk and opportunity management from a social procurement perspective. Deficiencies in the Project Management Body of Knowledge (PMBOK) are also highlighted around an expanded project management role in meeting these new project management requirements.Originality/valueSocial procurement is becoming increasingly popular in many countries as a collaborative mechanism to ensure construction and infrastructure projects contribute positively to the communities in which they are built. This research addresses the lack of project management research into social procurement by exploring the risks and opportunities of social procurement from a cross-sector collaboration perspective.

Influence of Organisational Culture on Total Quality Management Implementation in the Australian Construction Industry

This study explores the relationship between organisational culture and total quality management (TQM) implementation in Australia, with the purpose of identifying the particular culture that dominants the Australian construction industry, and distinguishing which cultures determine the successful implementation of TQM. Although the application of the competing values framework (CVF) for evaluating organisational culture (OC) in the construction industry has been studied by some scholars, research into OC and its impact on TQM procedures in connection to the CVF in project-based industries such as construction has received less attention. Thus, this research intends to determine the relationship between OC and TQM regarding the CVF in the Australian construction industry. The research methodology used the validated organisational culture assessment instrument (OCAI) CVF to frame OC, and TQM practices identified from the literature review. An online questionnaire was distributed through Qualtrics, whereby 42 valid responses representing various construction organisations in Australia were analysed through IBM SPSS Statistics 26 through endorsing k-means cluster analysis, and analysis of variance. The findings support that Australian construction organisations are dominated by the market and external focused cultures according to the CVF of organisational classification. Furthermore, the findings acknowledge that organisations that are dominated by hierarchical cultural characterises could provide an unfavourable environment for the successful implementation of TQM. Whilst an organisation that obtains a mix of cultures, specifically with the adhocracy and market cultures dominating could provide a favourable environment for the successful implementation of TQM.

A typology of social procurement champions in the construction and engineering industry

Social procurement is re-emerging as an innovative collaborative policy tool for governments around the world to leverage their construction supply chains to help them address intransigent social problems such as long-term unemployment. Such policies challenge deeply rooted institutional norms and structures in the construction industry and research shows that they are being championed by a small and largely undefined group of social procurement professionals who suffer significant role conflict and ambiguity. Contributing new insights to this nascent research, this paper traces etymological definitions of champion roles, merging them with organisational theory to present a new typology of social procurement champions in the construction industry. Drawing on a thematic analysis of snowballed interviews with fifteen recognised champions of social procurement in the Australian construction industry, findings highlight four distinct types of social procurement champion: champions of organisations; champions of the concept; champions of people; and champions of a solution. It is found that there is no one pure type of social procurement champion. Rather, champions have to adapt their social procurement roles to the highly dynamic and varied organisation contexts in which they operate. These findings advance the emerging social procurement debate within and outside construction by highlighting the many different roles which are needed to implement social innovations like social procurement into a project-based industry like construction. It is concluded that organisations which see this as one person’s responsibility are likely to fail in implementing these new policy reforms.

Project Management for Corporate Events: A Set of Tools to Manage Risk and Increase Quality Outcomes

The events industry is a project-based industry where sustainable development has been of ever-increasing interest over the last decade. In this regard, the importance of managing risks and delivering quality outcomes in corporate events and the events industry in general cannot be overstated. This paper aims to contribute to the enhancement of project management processes and quality of corporate events, with a focus on risk management. For this purpose, a set of semi-structured interviews with event managers was conducted and thematic analysis was used to qualitatively analyse the research data gathered. Data analysis resulted in the development of a set of tools and methods that have the potential to assist corporate event managers in the project risk management process. This set comprises of a work breakdown structure (WBS) template, a risk breakdown structure (RBS), and a set of risk treatment and mitigation strategies for corporate events. These tools are innovative in the sense that they are based on and correspond to the phases of the event life-cycle rather than individual management domains, have not been developed in unison before, and can be utilized collectively for greater benefits realization.

An analytic network process model for risk quantification of mega construction projects

Risk, complexity, and uncertainty are inherent components of megaprojects due to their unique features. However, existing project management practices lack a structured synthesis of these concepts, which leads to unrealistic risk assessments, ineffective management strategies, and poor project performance. In order to fill this gap, this research aims to develop a holistic risk quantification approach incorporating risk-related concepts. For this purpose, a conceptual risk assessment process developed for mega construction projects was operationalized with an Analytic Network Process (ANP) model. The weights of the risk sources in the ANP model were determined by the domain experts through a two-round Delphi study. With the purpose of improving the efficiency and reliability of the knowledge elicitation process, the Delphi study was supported by an interactive data collection tool capable of ANP calculations. The resulting model helped to prioritize the risk sources in mega construction projects. The validity of the findings was tested through the data of 11 mega construction projects. Validation studies revealed the potential of the ANP-based model in quantifying the project risks. Hence, the novel approach proposed in this study is expected to contribute both to the literature by unveiling the interactions between risk-related concepts and to the practitioners by assisting them in assessing the project risks more realistically. Although the risk quantification model has been developed for mega construction projects, it can also be implemented in other project-based industries with minor modifications.

Collaborative Interorganizational Relationships in a Project-Based Industry

The project-based construction industry finds itself in a paradoxical situation: while it weighs heavily in the world economy, it does have a history of low productivity. One important issue that plagues the industry is related to the challenges that stem from collaborative efforts (or lack thereof) between actors. The objective of this paper is to explore how actors of the construction industry organize their inter-firm relationships while examining the characteristics of such interactions and the elements affecting them (drivers, barriers, facilitators, outcomes). These interactions and elements were uncovered using a systematic literature review. A qualitative content analysis was carried out to categorize these elements and to generate dimensions describing the forms. The 139 articles retrieved depicted 12 relational forms established between construction companies (in descending order of citation): partnering, alliancing, project delivery methods, supply chain integration, joint ventures, integrated project delivery, joint risk management, collaborative design, contingent collaboration, quasi-fixed network, resource sharing, and collaborative planning. A multitude of drivers, barriers, facilitators, and outcomes were found. An analysis of the results led to the conceptualization of a multidimensional profile, which allows for a practical and flexible identification of the relationship form potential partners in the construction sector intend to establish. To provide guidelines for the implementation of this profile, a three-step framework was developed.

Sustainable Public Procurement in Large Infrastructure Projects—Policy Implementation for Carbon Emission Reductions

The infrastructure construction sector is a significant source of carbon emissions, and more stringent procurement requirements are central to meeting reduction targets in this demand-led and project-based industry. This paper aims to analyze the implementation of international policies for reducing carbon emissions in infrastructure construction, focusing on the interaction between policy ambitions and procurement practices. Based on case studies of large projects and their contexts in five countries worldwide: Australia, the Netherlands, Sweden, the UK, and the US, a cross-country comparison is performed of how policies and practices for carbon reduction develop across multiple implementation levels. Three levels are included in the analysis: policy, industry, and project level. We identify the projects as either drivers of policy goals, frontrunners in industry-level development processes, or translators of national policy. These roles, and the associated pathways for carbon emission reduction, are context-specific and depend on the policy ambitions at the national or regional level, the maturity of the supplier market, and, often, on the strategies of individual champions at the project level. Long-term learning processes, both within and between the various levels, are essential for advancing carbon reduction.

A project-based purchasing portfolio matrix applied to the Australian construction industry

For a project to be delivered on-time and to an agreed cost in accordance with the specification, it is important to have an appropriate purchasing strategy. A project succeeds due to many factors, one of which is cost alongside timely delivery and quality. Formal purchasing strategies for different purchasing categories are common in the manufacturing industry, but less so in a project-based industry such as construction. The paper argues that purchasing strategies suited to the project-based nature of construction would improve project delivery and other success factors. The purpose of this study is to determine if a matrix could assist companies in the project-based industry to formulating their purchasing strategies. Case studies of five Australian construction companies’ purchasing practises were undertaken to support this work. There is evidence that, to remain competitive, it is necessary for companies to develop a network of well-established relationships with suppliers and subcontractors. Purchasing strategies need to be adapted to each purchasing situation as projects are rarely, if ever, the same. It is necessary, therefore, to adopt an approach that combines the best commercial deal and most effective collaboration.

How does open innovation enhance productivity? An exploration in the construction ecosystem

The innovation literature on operations-based organisations describes the positive effect of Open Innovation (OI) on productivity. However, a systemic overview of how OI directly and indirectly impacts productivity is missing, particularly for project-based organisations. Hence, the article aims to fill this gap by providing a systemic representation of how OI enhances project-based organisations' productivity. The article focuses on the construction ecosystem since construction is an exemplary project-based industry and is known for its widespread and longstanding poor productivity. In particular, we investigated how OI is adopted and how OI can enhance productivity in the construction ecosystem. We conducted twenty semi-structured interviews with experts involved in OI construction projects in the UK. This paper makes three academic contributions. First, it provides an account of the most relevant causes for poor productivity in construction. Second, it consolidates primary and secondary data in a novel cognitive map providing a systemic representation of how OI enhances productivity in construction. The validity of the map goes beyond the boundaries of the construction ecosystem, being supported by several cross-sectorial references. Third, the paper offers six strategies that leverage OI to address the specific causes of low productivity in construction.

A knowledge-based risk management tool for construction projects using case-based reasoning

Construction projects are often deemed as complex and high-risk endeavours, mostly because of their vulnerability to external conditions as well as project-related uncertainties. Risk management (RM) is a critical success factor for companies operating in the construction industry. RM is a knowledge-intensive process that requires effective management of risk-related knowledge. Although some research has already been conducted to develop tools to support knowledge-based RM processes, most of these tools ignore some critical features, such as live knowledge capture, web-based platform for knowledge sharing and effective case retrieval for learning from past projects. Moreover, several RM phases, such as risk identification, analysis, response and monitoring are not usually integrated. Thus, this study aims to bridge these gaps by developing a knowledge-based RM tool (namely, CBRisk) via case-based reasoning (CBR). CBRisk has been developed as a web-based tool that supports the cyclic RM process and utilises an effective case retrieval method considering a comprehensive list of project similarity features in the form of fuzzy linguistic variables. Finally, the developed tool was evaluated and validated by conducting black-box testing and expert review meeting. Results demonstrated that CBRisk has a considerable potential to enhance the effectiveness of RM in construction projects and may be used in other project-based industries with minimal modifications.