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Can the use of a multi-dimensional WBS

help salvage your IT project?

 

FEATURED PAPER

By Gabin Vallet

SKEMA Business School

Lille, France

 


 

ABSTRACT

This paper aims at finding a way to increase the success rate of IT projects in companies. Indeed, the failure rate of such projects remains rather high and can have disastrous consequences in terms of cost and time lost.

To solve this issue, we will consider the different alternatives possible, alongside with the best attributes to evaluate the value of these alternatives. The next step will be to use Multi-Attribute Decision Making (MADM) methods, so that we can find the fittest solution to the problem at hand. At the end of the study, we will prove that the best solution is the extensive use of multi-dimensional Work Breakdown Structures (WBS), thanks to a Pareto analysis.

Keywords:       Work Breakdown Structure, Software, Failure, Information Technology, Standardization, Globalization, Communication, Technical jobs

INTRODUCTION

The Information Technology, or IT, industry, despite being a rather new industry, has quickly become one of the strongest, since the beginning of the 21st century, spending over 4.5 trillion dollars in 2017. According to expectations and scientific researches, it was expected to “eclipse the $4.8 trillion mark” in 2018[1]. It is acknowledged as one of the fields which contributes the most to the GDP of developed countries. Not only has it become an incredibly resilient industry in a few years, but it also enables all the other industries to be way more efficient than they used to be, with the implementation of brand new software and the spreading of revolutionary ways of communicating. Thus, it can be described as a “key driver of global economic growth”[2]. As far as the workforce involved in the industry is concerned, it has become one of the industries with the highest number of employees, employing about 6.1 million workers in the US in 2017, according to estimates, representing an increase from almost 1.5 million in comparison with the previous year, which makes it “the largest and fastest growing category of tech jobs”[3].

Another strength of the IT industry is that it requires people with various skills, be it soft or hard skills. Thus, the tech industry does not only require technical positions, with great software development skills, but it also includes salesmen, HR and even marketing[4]. Even the technical field is rather broad, with numerous jobs such as systems architecture, database development, maintenance and security services.

But although everything seems bright at first sight, the situation is in fact way more complicated than it primarily seems. Indeed, having access to state-of-the-art technology is no longer an advantage over the competition, but a requirement to remain competitive in an ever more globalized world, where distance and dematerialization have become the trend. The Blue Fox Group Blog mentions “7 Reasons Why Every Company Needs IT Support”[5]. These reasons are economic, managerial ones, as well as putting a strong emphasis on the time gained thanks to the use of such technologies.

But before going further, I should highlight the fact that IT projects share the same kind of complexity than other kinds of IT projects and are consistent with the Guild’s definitions:

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Editor’s note: This paper was prepared for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Vallet, G. (2019). Can the use of a multi-dimensional WBS help salvage your IT project? PM World Journal, Vol. VIII, Issue VII, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Vallet-can-multi-dimensional-wbs-help-salvage-your-IT-project.pdf

 


 

About the Author


Gabin Vallet

Lille, France

 

 

Gabin Vallet is an IT student, born in 1996 in Paris, France. After two years of Prepa CPGE (Classe Préparatoire aux Grandes Ecoles) in Mathematics and Physics, he integrated the Ecole Centrale de Lille, in September 2016. After 2 years of general engineering studies, he started specializing in IT, most precisely in Web Development, in Centrale Lille. He recently started a double degree at Skema Business School, called MSc PPMBD (Project and Programme Management & Business Development), being tutored by Dr Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragaha, to attain Guild of Project Controls certification. His recent professional experience includes an internship at BNP Paribas in Paris, and more recently as a computer engineer at SKF Marine GMBH, in Hamburg, Germany. His travels throughout the world have brought him to numerous countries, including Thailand, the USA and Argentina.

Gabin lives in Lille, France and can be contacted at gabin.vallet@skema.edu .

 

[1] Comptia (website – January 2018) – IT Industry Outlook 2018. Retrieved from: https://www.comptia.org/resources/it-industry-trends-analysis

[2] Economywatch (June 2010) – IT Industry, Information Technology Industry. Retrieved from: http://www.economywatch.com/business-and-economy/information-technology-industry.html

[3] Cyberstates (a product by Comptia) – Importance of the tech industry on US soil, and its current trend. Retrieved from: https://www.cyberstates.org/pdf/CompTIA_Cyberstates_2018.pdf

[4] Comptia (website – January 2018) – IT Industry Outlook 2018. Retrieved from: https://www.comptia.org/resources/it-industry-trends-analysis

[5] The Blue Fox Blog (September 2017) – 7 Reasons Why Every Company Needs IT Support. Retrieved from: https://www.bluefoxgroup.com/blog/7-reasons-every-company-needs-support

 

 

Comparing the Effects of ABC and BIM

in Construction Projects and Choose the Best Solution to Minimise the Delay and Cost Overrun Using MADMA

 

FEATURED PAPER

By Justin Johnson

SKEMA Business School

Lille, France

 


 

ABSTRACT

The importance of construction projects is increasing day by day, but the efficiency of the projects is not up to the level considering the statistics of delay and cost overrun in projects. “31% of projects came within +/-10% of budgets meaning a whopping 69% exceeded their budgets by more than 10% and as only 25% of the projects finished on time, means that 75% finished late”[1]. This paper aims to identify and analyse the problems causing delay and cost overrun in construction projects and alternative solutions for the problem. In this paper, we analyse the 5 alternative solutions with 14 attributes. For the analysis we use Multi-Attribute Decision Making analysis and with the additive weighting technique to determine the most suitable alternative solution. Based on the analysis, implementing Activity Based Costing with Building Information Modelling in projects improves efficiency and can minimize delay and cost overrun in constructions projects.

Keywords:       Building Information Modelling, Cost Estimation, Delay and Cost overrun, Construction, Activity Based Costing

INTRODUCTION

The world economy is growing in very fast rate “The world economy could more than double in size by 2050”[2]. Projects have a major role to play in this booming situation. Projects involve a set of specific complex tasks with a particular scope and limited time in allocated budget. “Accurate cost estimate and effective cost monitoring and control are essential elements to construction project success”[3].  Unfortunately, the current project management is not efficient “The average cost overrun of all projects is 27%”[4] this is a major problem in projects and will increase if not properly managed. The examples cost overrun projects are international space station (68bn$ over budget) and Sochi Olympics (32 bn $ over budget)[5].

“Pre-construction and design services contribute 15% of the budget of that can successfully identify potential issues before construction actually begins. This percentage is very less compared to the money saved on the project construction phase”[6]. Preconstruction planning and estimation have a major role in deciding the project success. “The factors that were studied make it difficult to control cost overruns during the construction stage alone. Instead, there should be sufficient planning of the project at the inception stage. Drawings and other tender documents should be well detailed before going out to tender”[7]. Efficient planning and estimation can prevent delay and cost overrun in construction projects. Current cost estimation system is not accurate as activity-based cost estimation system.

“Activity-Based Costing traces indirect costs or known as overhead to products and services identifying resource and their costs, the consumption of these resources by activities and performance of activities to produce output” [8]. This efficient cost estimation system improves the performance of cost estimation and it results in the performance of project management. The challenge for ABC is huge and complex data input is needed. “BIM (Building Information Modeling) is an intelligent 3D model-based process that gives architecture, engineering, and construction (AEC) professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure”[9]. BIM can provide adequate data for ABC the combined utilization of both activity-based costing and building information modeling will significantly minimize the problems in projects. “although delay and cost overrun may seem very inherent in most projects, the good news is that it can be reduced or totally eliminated using a proper project performance monitoring and control system that will integrate all the key activities of each phase of the project”[10].

The primary causes of delay and cost overrun in the project are analyzed through the fishbone diagram. The primary category can be divided into 4 namely project category, human category, environment category, and management category.

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Editor’s note: This paper was prepared for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Johnson, J. (2019). Comparing the Effects of ABC and BIM in Construction Projects and Choose the Best Solution to Minimise the Delay and Cost Overrun Using MADMA, PM World Journal, Vol. VIII, Issue VII, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Johnson-comparing-abc-and-bim-in-construction-projects.pdf

 


 

About the Author


Justin Johnson

India and France

 

 

Justin Johnson is an Engineer with 4+ years of experience in Oil and Gas Projects, Construction management and Occupational health and safety. Born in UAE, raised in India and recently relocated to France. He holds a bachelor’s degree in Electronics and Communication Engineering from Calicut university, India and MBA Project management from Bharathiar University, India. He certified in Occupational Health and Safety by NEBOSH(UK). He has experience in LNG and LPG Gas plants construction in India and Middle east as Project Engineer and Health and Safety professional. Currently student of Skema Business School, France for MSc Project & Programme Management and Business Development. He speaks fluent English, Hindi, Malayalam, Tamil and basic French.

Justin lives in Lille, France and can be contacted at justin.johnson@skema.edu or

LinkedIn: www.linkedin.com/in/justin-johnson-36360556

 

[1] GUILD OF PROJECT CONTROLS COMPENDIUM and REFERENCE (CaR) | Project Controls – planning, scheduling, cost management and forensic analysis (Planning Planet). (n.d.). Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-cost-estimating-budgeting

[2] IPMA. (2017, February 17). The World in 2050 – and some implications for project management – IPMA International Project Management Association. Retrieved from https://www.ipma.world/world-2050-implications-project-management/

[3] Elbeltagi, E., Dawood, M., Hosny, O., & Elhakeem, A. (2014, August). BIM-Based Cost    Estimation/ Monitoring For Building Construction. Retrieved from https://www.researchgate.net/publication/264195542_Cost_Estimation_in_Building_Information_Model

[4] Seven Shocking Project Management Statistics. (2018, November 16). Retrieved from https://www.teamgantt.com/blog/seven-shocking-project-management-statistics-and-lessons-we-should-learn

[5] McCarthy, N. (2014, December 10). Major International Construction Projects That Went Billions Over-Budget [Infographic]. Retrieved from https://www.forbes.com/sites/niallmccarthy/2014/12/10/major-international-construction-projects-that-went-billions-over-budget-infographic/#1bcd927d376a

[6] 5 Common Causes of Cost Overruns in Construction Projects – PlanGrid Construction Productivity Blog. (2018, June 4). Retrieved from https://blog.plangrid.com/2017/11/5-common-causes-of-cost-overruns-in-construction-projects/

[7] Ramabodu, M. S., & Verster, J. P. (n.d.). Factors Contributing to Cost Overruns of Construction Projects. Retrieved from https://www.irbnet.de/daten/iconda/CIB_DC22746.pdf

[8] Implementing Activity-Based Costing | IMA – The association of accountants and financial professionals working in the business. (n.d.). Retrieved from https://www.imanet.org/insights-and-trends/strategic-cost-management/implementing-activity-based-costing?ssopc=1

[9] What Is BIM | Building Information Modeling | Autodesk. (n.d.). Retrieved from https://www.autodesk.com/solutions/bim

[10] Buys, F. (2015, September). FIVE CAUSES OF PROJECT DELAY AND COST OVERRUN, AND THEIR MITIGATION MEASURES. Retrieved from https://www.linkedin.com/pulse/five-causes-project-delay-cost-overrun-mitigation-measures-buys/

 

 

The best alternative for solving uncertainties

in complex IT project planning, risk management, and change management

 

FEATURED PAPER

By Hao Sun

SKEMA Business School

Paris, France and China

 


 

ABSTRACT

In spite of the continuous growth of investments and investigations for project management, yet there have been none apparent improvements of the total success rate of projects since the 21st  century, which is a paradox in the project management fields.

This article aims to manage complex IT projects by using new theories and methods. One of the essential features of a failure complex IT project is the high degree of uncertainty, which is the subject of this crucial point. Individually, the high uncertainty leads to high risks result that need to be handled by particular methods and processes of risk management.

The purpose of investigating complex IT projects is not only to summarize the best practices/methods of this approach but also to improve management activities and the practice of various projects to address low success rates. Therefore, this paper help to solve some of the problems in the field of IT project management, and finally gives some valuable advice on general IT projects.

Keywords: complex IT projects, Agile, project planning, project risk management, project change management, Line of Balance, Critical Chain, ITIL.

INTRODUCTION

In 2016, Standish Group, tracked the implementation of IT projects in the United States from 2011 to 2015 and published a series of reports entitled Chaos. According to the series of reports, “about 50% of IT projects exceeded the budget between 2011 and 2015, although this figure has improved a lot since 2000, but it is still high”[1]. The main reason for this improvement is the improvement of project management.

Chaos report follows:Figure 1. Chaos Report Data[2]

Remark:

Project Success (Green): The project is completed on time and on budget.

Project Challenged (Yellow): The project is completed over-time or over-budget.

Project Impaired (Red): The project is canceled at some point during the development cycle.

According to the survey report, it is clear that there are many problems in IT project control. We can understand project control through the guild:

Figure 2. Standards of Practice (SoP) [3]

These problems can be summarized as:

“Business involvement is inconsistent or results in confusion,

Fuzzy business objectives,

Requirements definition processes do not reflect business need,

Lack of complete agreement when projects are done.”[4]But behind these appearances, in my view, the deeper reason is that the complexity of IT projects is increasing, the IT project managers lack the awareness of complexity, and the high uncertainty and high risk of IT projects lead to this chaotic situation.

So, what is complex project management? Recognizing the complexity of the project, first of all, is to recognize the complexity of the project, and then put forward the concept of complex projects, which have complex project management. However, recent results from some project management studies have shown that “project complexity is common to almost all projects, but not all projects can be classified as complex projects. Complex projects have the following characteristics: Uncertainty, ambiguity, dynamic interfaces, and significant political or external influences; Usually run over a period which exceeds the technology cycle time of the technologies involved; Can be defined by effect, but not by a solution.”[5] The original intention of the complex project as a concept is to solve the problem that the compliance rate of the project targets in the global scope is still low after entering the 21st century. For this reason, some experts have proposed to introduce new theories to support project management.

The following table is a standard for project management complexity rating from GAPPS:

More…

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Editor’s note: This paper was prepared for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Sun, H. (2019). The best alternative for solving uncertainties in complex IT project planning, risk management, and change management, PM World Journal, Vol. VIII, Issue VII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Sun-solving-uncertainties-in-complex-IT-project-planning.pdf

 


 

About the Author


Hao Sun

Anhui, China

 

 

 

 

Hao Sun is a joint student of the University of Science and Technology of China and the SKEMA Double Master Program. He studied software engineering at the University of Science and Technology of China and project management at SKEMA. He was born in Anhui Province, China, and has a high degree in network engineering from Anhui University and is a certified database engineer in China. At the same time, he passed the certification of AgilePM and Prince2 in December 2018. He completed his final assignment in the first semester of SKEMA and completed his thesis under the guidance of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Consultant by studying International Contract. Hao Sun currently lives in Paris, France, and can be reached at hao.sun@skema.edu.

 

[1] Standish Group (2016) CHAOS Report. Retrieved November 2018, from https://www.standishgroup.com/store/services/10-chaos-report-decision-latency-theory-2018-package.html

[2] Standish Group (2016) CHAOS Report. Retrieved November 2018, from https://www.standishgroup.com/store/services/10-chaos-report-decision-latency-theory-2018-package.html

[3] Definition of SoP by Guild of Project Controls Retrieved November 2018, from http://www.planningplanet.com/guild/gpc

[4] Aleksandar, R. (2017) Why do so many it projects fail? Retrieved November 2018, from https://www.oshyn.com/blogs/2017/january/why-do-so-many-it-projects-fail

[5] Naomi, C. (2016) How to Manage a Complex Project? Retrieved November 2018, from https://www.projectmanager.com/blog/manage-a-complex-project

 

 

Best Methods of Alternate Dispute Resolution

to tackle Conflicts in the IT Industry: A tactical approach to future IT contracts

 

FEATURED PAPER

By Neethu Anna Sam

SKEMA Business School

Paris, France and India

 


 

ABSTRACT

Information technology is one of the common industries which faces disputes often, and conflicts has been there from the beginning of time. Mostly conflicts arise due to disagreements and then contract breach which leads to fighting for the rights for years, causing huge loss and eventually closing down their business. In this era, there are many ways to deal with an issue. Finding the right source of impact and executing effective methods of dispute resolution can be the smarter move. This paper deals with analyzing several alternate dispute resolution methods using the multi-attribute decision making process. This paper gives evidence on the use of Prevention as the best method of alternate dispute resolution to be applied in early stages of a contract to scale down the issue from escalating to Litigation and the possible clauses to be included in written contract.

Keywords:      Alternate Dispute Resolution, Conflicts, Information Technology (IT), Failure, Contract, Project Management, Tech Industry, Litigation,

INTRODUCTION

Information technology is a rapidly evolving field and has several technological aspects which change regularly and demands competence. They have a broad scope and seeks to integrate more of their information functions. It can be a challenge to cope with such a transforming environment. Our capacity to understand and learn about the developing IT initiatives can be a challenge because of its proliferating cost, complexity and the impacts on business processes. For years, IT projects continue to fail at an alarming rate, and there are numerous reasons why the sector continues to face failures often. The cloud portfolio management of Innotas by Planview conducted a survey in 2013 that revealed 50% had experienced a failure in IT projects in 2012. After three years, the Innotas annual project 2016 and portfolio management reported 55% failure which was polled by 126 IT professionals between January and march of 2015. So, we can conclude that the numbers had increased in the following years[1].

According to the study of 600 IT and business executive by a software development firm, Geneca, “75% confess that the lack of confidence in the success of the project causes failure in projects, 80% reveals that they waste their time on rework, 78% sense that the stakeholders have inconsistent involvement and project is less synced which eventually results in confusion. Only 55% understands the business case and the requirements for projects. Less than 20% only develops an appropriate requirement process by the business case. And at the end of a project, hardly 23% agrees to it”[2]. Similarly, a project management survey in 2017 by KPMG states that “leading change and effective communication are among the top skills lacking for most of the project management professionals.” “Only 29% of projects are delivering to budget, and only a fifth of projects are consistently delivering on their planned benefits. While most projects have active and engaged sponsors, only 10% are seen as providing extremely effective governance activities.

Finally, only one-third of projects are delivering the desired outcomes”[3]. From all these statistics, we can observe that failure of IT projects can be attributed more to poor project management than technological issues. Therefore, for root cause analysis, there are four main areas to be focused, they are project management, change in scope, different stakeholder interest and refuted change request. It is necessary to analyze how these factors affect a project and what resolutions can be determined for one of the most critical factors in a project, i.e., project management style.

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Editor’s note: This paper was prepared for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Sam, N.A. (2019). Best Methods of Alternate Dispute Resolution to tackle Conflicts in the IT Industry: A tactical approach to future IT contracts, PM World Journal, Vol. VIII, Issue VII, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Sam-alternate-dispute-resolution-in-IT-industry.pdf

 


 

About the Author


Neethu Anna Sam

SKEMA Business School
Paris, France and India

 

 

Neethu Anna Sam is an engineer who graduated in Electronics and Communication Engineering in India. Born in Kerala, a southern state in India, she is currently settled in Paris to pursue her masters degree. She worked in Wipro, a multinational company in India as a Project Engineer for 2.5 years. In Wipro, she worked for Microsoft Account to test the compatibility of Apps on OS. She worked as a critical resource to test the OS at the time of WIN 10 release. She acquired knowledge on information technology through her experience and decided to take a level up through Masters. Currently, she is pursuing her master’s degree in Project, Programme Management and Business Development at Skema Business School. She is PRINCE2 and AgilePM certified. With her international and technical background and as an open-minded person, she is an efficient problem solver and loves taking new challenges.

Neethu lives in Paris and can be contacted at samneethuanna@gmail.com or www.linkedin.com/in/neethu-anna-sam-49904064

 

[1] Florentine, S. (2017, February 27). IT project success rates finally improving. Retrieved from https://www.cio.com/article/3174516/project-management/it-project-success-rates-finally-improving.html

[2] Geneca. (2017, January 25). Why up to 75% of Software Projects Will Fail ⋆ Geneca. Retrieved from https://www.geneca.com/why-up-to-75-of-software-projects-will-fail/

[3] Barlow, G., Tubb, A., & Riley, G. (2017). Driving Business Performance. Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/July/projectmanagementsurvey-kpmg-nz.pdf

 

 

Alternative Solutions for Improved Cost Estimation Process

in IT Projects using MADMA

 

FEATURED PAPER

By Vinith Rajan

SKEMA Business School

Lille, France and India

 


 

ABSTRACT

The Calculation and the maintenance of Cost estimation/Cost management in the IT projects are becoming difficult day by day due to the increased complexity of the projects. The cost estimation is previously done by a standard format. Which give the idea to the estimator a rough estimate of the project which is no longer valid for the uncertainty projects. The main purpose of the cost estimation is “The maker can decide whether the undertaking or item is practical to producer before the assembling procedure”[1]. In this paper, we have used the Multi-Attribute Decision Making analysis and with that the additive weighing technique to determine the alternative solution from the better solution to the least solutions that should be integrated into the project cost estimation. Based on the analysis the project cost estimator should know more about the cost estimation techniques and the better estimation technique and the model to use for the cost estimation. Since the better-improved process of the cost estimation/cost management in the IT projects will govern the project officials to finish the project in time, with the scope and the defined cost.

Keywords: Cost estimating, Cost management, Project budget, Resource planning, Cost estimating methods.

INTRODUCTION

Cost management/Cost estimating in an IT project is concerned mostly with the process, methods followed and the phases of the project. All the projects irrespective of a large or medium or small needs to be processed under certain constraints. Cost is one of the mainly focused constraints that need to be controlled while managing the project. The Cost management includes “the process required to ensure that the project is completed within the cost estimation done prior to the project”[2]. The Cost estimating is the practice of “forecasting the cost of completing a project with a defined scope it is used to authorize a project’s budget and manage its Cost”[3]. Cost estimating may seem like a painful process, but this is a crucial one because it is important in defining the parameters of a project. Cost management takes place throughout the lifecycle of the project from the initial phase to the closure phase, it is directly related to the project management which includes the “activities like Planning, estimating, budgeting, Financing, funding, managing, and controlling costs so the project can be completed within cost constraints”[4]. The goal of the Resource Estimating is to “have a resource for each activity” in the project[5].The High performing organizations successfully finished the projects by 89% where the low performing organization completes only 36% which uses 12 times more resources than High- performing firms because of poor cost management and estimation. Organizations lose about $109 million every year for every $1 billion invested in projects which gives us a huge loss margin[6].

According to the KPMG Canada Survey (1997) focused on the IT projects in Canada’s leading 1450 public and private sector organizations has given the result as “61% of the projects undertaken in IT is a failure and more than 30% of the projects have blown up on their cost to complete the project”. Another survey report, The Chaos Report (1995), revealed that “31.1% of projects have been canceled before they have been completed due to poor cost estimation and management”[7]. Further results indicate 52.7% of projects will cost over 189% of their initial estimate which showcases the serious problem of lack of cost estimating and cost management technique and the process followed in it. PRINCE 2 is the very least used methodology amount the project managers and 44% of the project managers use no software for estimating their projects[8]. As a result of IT CORTEX, the IT project cost management is highly unsuccessful than successful, about one out of five IT projects gets the satisfaction of successful completion6. “The larger the project becomes the more likely the failure”.

The FIVE WHY’S starting with a problem and ask “why” it is occurring and continues until you reach the root cause of the problem. (i)Omit problem scope from the estimate, which would be the leading cause of every wrong estimation and the cost overruns. (ii)Omit possible risks from the analysis, both internally and externally. (iii)The unrealistic and optimistic assumption made by the estimators leads to the cause of overruns, these three reasons contribute to the 74% of cost growths according to the RAND STUDY. (iv)Use historical low escalation projections, are the cause for 11.2% of cost growths. (v)Estimation not done by a bona fide estimator is the root cause of these problems[9]. For these kinds of complex nature projects, it is essential to have a standard methodology and process for cost estimation and cost management so that the causes for this misinterpretation will be minimized.

Based on the Glenn Butts analysis on how we underestimate the cost. The five why’s analysis is made to find out the root cause of the problem by asking the why statements for every cause, shown in figure 1.0

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To read entire paper, click here

 

Editor’s note: This paper was prepared for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Rajan, V. (2019). Alternative Solutions for Improved Cost Estimation Process in IT Projects using MADMA, PM World Journal, Vol. VIII, Issue VII, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Rajan-alternatives-for-improved-IT-project-cost-estimation.pdf

 


 

About the Author


Vinith Rajan

France and Republic of India

 

 

 

VINITH RAJAN, MSC in “Project and Programme Management and Business Development” at SKEMA Business School, Lille Campus. As a part of a key module “The International Contract Management” qualification requirement under the direct supervision of Professor. Paul D Giammalvo, PhD, CDT, CCP, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, the course director and the professor Paul Gardiner, the program Director, this student paper has been produced with the purpose of getting it published with The PM World Journal. He graduated from the Hindusthan Institute of Technology, Coimbatore, Tamil Nadu, India and holds a bachelor’s degree in Computer Science Engineering. He has worked at Consensus Technology Private limited as a Business Associate Intern in the year 2017 and also worked at Cable Partners as a Customer Service Associate in the year 2017. He has a background in Software/Information Technology. He speaks fluent English, Tamil, Malayalam and Conversational level French.

Vinith can be contacted at vinith.rajan@skema.edu or LinkedIn: https://www.linkedin.com/in/vinith-rajan-65151a158/

 

[1] (Blog- MIE solutions, David Ferguson), February 8, 2011- Purpose of cost estimating. https://blog.mie-solutions.com/2011/02/08/purpose-of-cost-estimating/

[2] (Blog- cost engineering), 28th December: The role of cost estimating in project management http://www.costengineering.eu/blog-article/the-role-of-cost-estimating-in-project-management

[3] (Blog- smart sheet): The ultimate guide of project costing, An overview of cost estimation. https://www.smartsheet.com/ultimate-guide-project-cost-estimating

[4] (Blog- cost management), 23rd February : Cost management explained in four steps http://www.costmanagement.eu/blog-article/198-cost-management-explained-in-4-steps

[5] Bpayne and Adrienne Watt, Chapter 11 resource planning project management https://opentextbc.ca/projectmanagement/chapter/chapter-11-resource-planning-project-management/

[6] Guest Contributor, October 14, 2015: Project Failure statistics: the shocking truth http://www.projectmanagementworks.co.uk/project-failure-statistics/

[7] (KPMG survey 1997, Chaos report 1995): Failure rate statistics over IT projects failure rate, http://www.it-cortex.com/Stat_Failure_Rate.htm

[8] Rachel Burger, (September 26th,2016): 20 surprising project management statistics           https://blog.capterra.com/surprising-project-management-statistics/

[9] Glenn Butts, February – 2010, Megaprojects estimates a history of denial- http://www.build-project-management-competency.com/wp-content/uploads/2010/09/Glenn.Butts-Mega-Projects-Estimates.pdf

 

 

Critical Review of Factors

Inhibiting the Adoption of Green Building Design in Nigeria

 

FEATURED PAPER

By aSunday Ajiboye Babarinde[1], a,bOludolapo Ibrahim Olanrewaju, bOluwatobi Nurudeen Oyefusi and bModupeoluwa Olajumoke Adeyemo

aDollahills Research Lab, Dollasoft Technologies
bArbico Plc.

Lagos, Nigeria

 


 

ABSTRACT

Green Building (GB) is one of the recent developments used to improve the energy efficiency and environmental impacts of buildings. It has been widely embraced in other parts of the world but little can be said in the case of Nigeria. Hence, this study aims to conduct an extensive literature review on its level of adoption and incorporation into the Nigerian building system. The study discusses the factors that necessitated the development of the building concept. It also discussed briefly on the available ratings in different countries and projects in which the green building initiative was adopted in Nigeria. The study came to a discovery of some major factors which is inhibiting the adoption of green building design in Nigeria and also proffered viable solutions.

Keywords:  Greenhouse gases; Green building; Sustainability

INTRODUCTION

Green building became an object of mention due to the deteriorating effect of greenhouse gases on human lives and the atmosphere, and these gases are being emitted into the atmosphere on daily basis. These greenhouse gases and Ozone layer depletion are currently a household word following the summit in Rio, 1992 (Sood et al., 2001). The green building initiative was conceived to help cushion the effect of the gas emissions and to help prevent further increase in the greenhouse gases and ozone layer depletion, notwithstanding providing an environmentally friendly building (Brian-Theordor, 2016). As nearly 40% of Green House Gases emissions are attributed to the design, construction, and operation of buildings (US Green Building Council, 2010) also, Yan et al. (2010) corroborated that the construction of buildings has a very important impact on the environment, and the process of manufacturing and transporting of building materials, installing and constructing of buildings consumes great energy and emits large quantity of greenhouse gas (GHG). As the majority of Green House Gas emissions are from fossil fuel use, reversing climate change requires the reduction of building energy use and transition to renewable energy sources (Brian-Theordor, 2016).

Therefore, the saying “No man is an Island”, this statement asserts that we all share a common humanity and a universe which we all should deliberately and consciously protect to ensure our continuous human survival. In today’s increasingly complex and interrelated world, not only is no man an island but, similarly, no building stands alone. Every building exists within an environmental context upon which it not only acts but which also has an impact upon the building. Because of today’s increased complexity and interrelatedness, no building can be constructed as a microcosm. Every building has its own consequential effect on the environment, so professionals in the construction industry should be increasingly informed about the consequences each project will have on the environment, thereby arousing the need for Proper Environmental Impact Assessment to be carried before project commencement and at various stages of the building lifecycle (Zolfagharian et al., 2012). “Going Green” is also a section of call towards sustainable but not limited to Green Buildings only but in all spheres of human activity which in one way or another constitutes a challenge to human sustainability.

Sustainability is also an issue that comes to mind when discussing green building. Sustainability is collection of policies and strategies employed by companies to minimize their environmental impact on future generations. It involves using the environment in such a way to ensure its continual usability and availability for use by generations yet unborn. Environmental Sustainability was defined by Morelli (2011), as the maintenance of natural capital. Sustainability concept encapsulates varying concepts from sustainable building, design and operations.

Green building and reduction in gases emission is aimed at ensuring human and environmental sustainability. Sustainability is a social concept in that it considers the needs of the unborn. It is an environmental concept in that it addresses the effect of pollution and resource management (or lack thereof) on Earth’s ecological systems. Further, it is an economic concept in that it seeks to quantify the tolerable limits for consumption such that we can live on Earth’s interest instead of depleting the principal, further, it is a perspective which focuses on systems and relationships instead of objects.

According to Kolawole and Anigbogu (2005), the friendliest way to handle the environment is not to build. However, without construction, life can be miserable and threatened. For shelter is needed, among other things, for protection against the inclement weather and for healthy living. Hence, this study seeks to carryout critical review on factors inhibiting the adoption of green buildings in Nigeria.

More…

To read entire paper, click here

 

How to cite this paper: Babarinde, S.Al, Olanrewaju, O.I., Oyefusi, O.N., Adeyemo, M.O. (2019). Critical Review of Factors Inhibiting the Adoption of Green Building Design in Nigeria; PM World Journal, Vol. VIII, Issue VII, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Factors-Inhibiting-Green-Building-in-Nigeria-1.pdf

 


 

About the Authors


Sunday Ajiboye Babarinde

Federal University of Technology,
Minna, Niger State, Nigeria.

 

 

Sunday Ajiboye Babarinde is a resourceful Quantity surveyor and researcher. He attended Federal University of Technology, Minna where he studied Bachelor of Technology in Quantity surveying and graduated in 2017. He possess certifications in Project Management and Facility Management from Global Institute of Project Management and also a certification in Quality Control and Assurance. He has great passion for the implementation of innovative technology towards advancing the Nigerian and African Construction Industry with a view at fostering quality and cost-efficient construction. He works with Brainsworth Nigeria Ltd. in the capacity of a quantity surveyor. His research interests are on building information modelling, risk management, lean construction, and IT applications to construction. Sunday can be contacted on spenpe196@gmail.com.

 


Oludolapo Ibrahim Olanrewaju

University of Benin Ugbowo, Edo State, Nigeria.
Dollahills Research Consult, Lagos, Nigeria.
Dollasoft Technologies, Lagos, Nigeria.

 

 

Oludolapo Ibrahim Olanrewaju is a young multitalented Quantity surveyor, researcher and programmer. He attended Federal University of Technology, Minna where he studied Bachelor of Technology in Quantity surveying and graduated in 2017. He graduated with a First Class and emerged the best graduating student in department of Quantity surveying for 2017 set.  Oludolapo has a strong passion for ICT and he has been involved in series of software projects like DOLLAQUESS (Quantity surveying software he designed), decision support systems, inventory manager and others. He works with Dollasoft Technologies as a Freelance Software Developer, Data analyst and Researcher and Arbico Plc as a Graduate Trainee (Estimator). His research interests are on environmental health, building information modelling, construction informatics, construction health and safety (H&S), construction management, construction emissions, green construction, etc. Oludolapo can be contacted on oludolapoolanrewaju2012@gmail.com.

 


Oluwatobi Nurudeen Oyefusi

Arbico Plc

 

 

Oluwatobi Nurudeen Oyefusi is a highly skilled Quantity surveyor. He attended Federal University of Technology, Akure where he studied Bachelor of Technology in Quantity surveying and graduated with a First Class in 2016.  He currently works with Arbico Plc. as a Junior Estimator. His research interests are on building information modelling and sustainability. Oluwatobi can be contacted on oyefusitobi@yahoo.com.

 


Modupeoluwa Olajumoke Adeyemo

Arbico Plc

 

 

Modupeoluwa Olajumoke Adeyemo is a Proactive, analytical and research-oriented graduate of Quantity surveying from the prestigious Federal University of Technology Akure. Her devotion to excellence and never-ending self-improvement is a testament to her graduating with first class honours from the 2017/2018 Academic set of FUTA. Her strong and unwavering dedication to academic excellence is exemplary in the varied scholarship she has being awarded across board. She is strongly passionate about BIM in construction, CSR in construction and sustainable building solutions to the challenges confronting the Nigerian construction Industry. She is currently serving her Father’s land as a Quantity surveyor with Arbico Plc where she contributes her immense wealth of experience in construction management and administration. Her research interests are diverse but majorly based on disruptive innovation, CSR in construction, Internet of things (IOT), BIM in construction and sustainable construction. Modupeoluwa can be contacted on adeyemodupe123@gmail.com.

[1] Corresponding author: spenpe196@gmail.com

 

 

Effects of Motivation on Workers’ Performance

of Selected Firms in Abia State, Nigeria

 

FEATURED PAPER

By Dr. Uzoma F. Amaeshi

Department of Project Management Technology
Federal University of Technology, Owerri

Nigeria

 


 

ABSTRACT

Using selected manufacturing firms in Aba, Abia State, we investigated the effects of motivation on workers’ performance in Nigeria. The objective of the study is to compare our primary research findings with the findings in the extant literature for the purpose of identifying common patterns as well as, controversies within the secondary data directly related to the research area thereby validating the theories of motivation through this work. Adopting a survey design with well-structured questionnaire, we collected quantitative data and analyzed same using descriptive and inferential statistics. In the attempt to answer the research questions, we used the multiple regression models on four selected motivational variables of Reward System, Motivational Factors, Employee Motivation, and Good Management Practices. The results of our study showed that there is a statistically significant relationship between the Motivational variables (Motivational factors and Management Practices) and Workers’ Performance. All the motivational factors considered in this study with their positive coefficients met the a priori expectation. Our conclusion reinforces existing knowledge that motivational variables are important in encouraging better performance among employees in the work place.

Key words:     Reward system, motivational factors, employee motivation, good management practices, and worker performance

 

INTRODUCTION

1.1. Background of the Study.

“Performance management is a process by which organizations align their resources, systems and employees to strategic objectives and priorities” (Davies, 2005). To achieve these objectives, “the human resource management functions in organizations are designed to maximize employee performance towards employers’ strategic objectives. Human resource (HR) is primarily concerned with the management of people within organizations focusing on policies and on systems” (Helepota, 2005).

According to Collings, D. G. & Wood, G. T. (2009), Human Resources departments and units in organizations typically undertake a number of activities, including “employee benefits design, recruitment, training and development, performance appraisal and rewarding” (Davies, 2005). The job-related activities expected of a worker and how well those activities were executed is employee performance.

Helepota, (2005) says that “an individual’s effectiveness mainly is determined by several motives such as performance assessments, individual inspirations and satisfaction, compensation, training and enhancement, job security, performance, organizational philosophy and environment”. Managers should assess employee performance on an annual or quarterly basis in order to help them identify suggested areas for their improvement.

In Nigeria, this managerial function appears nonexistent. Researchers opine that “Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal is motivation” (Davies, 2005; Helepota, (2005)). Motivated employees actually become more enthusiastic as they work towards achieving desired organizational objectives”. The business culture in Nigeria 1980 “put a considerable emphasis on personal reward on the basis that highly motivated individual could transform organizations and societies”(Usman, 2010).

Collings & Wood, (2009) however say that “the 90’s have seen companies traumatized and bankrupted by the inappropriate use of remuneration as a motivator”. Researchers believe that “employees are the significant base for improving organizational profitability” hence the current effort towards finding new avenues where an organization can improve its performance through employee motivation (Antomioni, (1999), Appleby (2002); Amana, (2005); Basset-Jones, & Lloyd, (2005); Burton, & Tharkar, (2005). This study therefore aims at determining the extent to which motivation can enhance employee performance in Nigeria.

It is worthy of academic discourse because managers have conducted performance appraisals for the purpose of punishing non-performing worker. Again, it is common knowledge that performance appraisal activities in Nigeria are done mostly for the sake of performing such functions, not for contributing directly to the preferred results of the organization. This situation calls for more focus on effectiveness such that systems and processes in the organization could be applied in the right way to the right things in order to achieve results. It is then that the organization and its various parts would be really performing.

“Managers see motivation as an essential part of the performance equation at all levels, while organizational researchers see it as a fundamental building block in the development of useful theories of effective management practice” (Antomioni, (1999), Appleby (2002); Amana, (2005)). Generally, there is always the confusion between the two areas of motivation which are “motivation to be on the job” and “motivation to perform” on the job. Previous research efforts concentrated purely on individual motivation, ignoring organizational performance. Therefore, the nature of this study has a great impact on the performance of both employees and their organizations. Performance of an organization, configuration of an employee which develops occupational exceptionality for some definite purpose is remarkably accepted. Organizational performance is a theoretical concept of how an organization accomplishes outcomes and goals” (Abedi et al., 2011).

In this study, we assert that performance issues should always be based on behaviors that were actually seen, not on characteristics that employer or someone else senses or intuits about the employee’s personality. We anchor this study on Herzberg’s (2003) “two –factor theory of motivation” at the workplace which describes the differentiation between the two areas of motivation. The two-factor theory distinguishes “satisfiers which are the main causes of high or low performance in the workplace from dissatisfiers which are absented or perceived as inadequate”. “These will be the main causes for job dissatisfaction that de-motivate the workers to remain on a job”. “Empowerment, recognition, rewarding, responsibility and the work itself are examples of motivating factors. Dissatisfiers are all about working conditions, salaries, relationship with colleagues, administrative supervision, etc.” [Herzberg, 2003].

The study is limited to the intrinsic and extrinsic motivational factors that impact on worker performance focusing on selected firms in Nigeria. Intrinsic motivation derives from internal factors that drives performance and addresses individual needs such as growth, social approval, security, recognition, learning opportunity, challenging work, responsibility, career advancement and work itself. Extrinsic motivation, on the hand, refers to outside source of influence that tends to control the performance of work. They include basic pay, performance pay, other allowances, awards, working conditions, status, company policies, supervision etc.

1.2. Aim and Objectives of the study

Our aim in this study is to compare our primary research findings with the findings in the extant literature for the purpose of identifying common patterns as well as controversies within the secondary data directly related to the research area thereby validating the theories of motivation through this work.

To achieve this aim, the following objectives were set:

  1. To determine how employees reward system can promote organizational performance in Nigeria.
  2. To ascertain the extent motivational factors can lead to high performance of employees of Nigerian organizations.
  3. To establish the relationship between motivation of employees and performance in Nigerian organizations.
  4. To find out how Human Resource Management practices in Nigeria can enhance motivation of employees towards high performance.

More…

To read entire paper, click here

 

How to cite this paper: Amaeshi, U. F. (2019). Effects of Motivation on Workers’ Performance of Selected Firms in Abia State, Nigeria; PM World Journal, Vol. VIII, Issue VII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Amaeshi-effects-of-motivation-on-workers-performance.pdf

 


 

About the Author


Dr. Uzoma Francis Amaeshi

Federal University of Technology
Owerri, Imo State, Nigeria

 

 

Dr. Uzoma Francis Amaeshi is a senior lecturer in the department of Project Management Technology, Federal University of Technology, Owerri, Imo State, Nigeria. His doctoral work is in Management with areas of research interest that include: Human Resources Management; Organizational Development and Entrepreneurship development.

Dr. Amaeshi can be contacted at uzor1958@gmail.com.

 

 

In-depth View on the Construction Contracts

 

FEATURED PAPER

By Prof Dr. Mostafa H. Kotb, Dr. Mohamed Abo Al Anwar, Eng. Haytham Baraka

Cairo, Egypt

 


 

  1. Abstract

Construction contracts are one of the most important tools in the construction sector and vital to any project in order to be successfully delivered. This paper provides an overall view on contracts in the construction industry.

Keywords: Contract, Management, construction, standard contract, Traditional contract, choice of contract.

  1. Introduction to contracts

Construction contracts are one of the most important tools in the construction sector and vital to any project in order to be successfully delivered. The contract represents the most important document in the construction industry, and it gains this level of importance as it represents the most powerful tool to enforce any decision. It determines the authority and the obligations of each involved party. Simply, a contract represents a formalized tool of communication between at least two parties. We will not exaggerate if we said that the contact is the gate for all project management processes. Contracts define the various aspects, obligations and relations between each party that are necessary to reach a common planned goal.

 (Institution of Civil Engineers, 2016) Contracts should also establish:

  1. Who is responsible for design, construction and supporting work
  2. How risks are shared between promoter and contractor.
  3. Entitlement and any formalities relating to the use of sub-contractors.
  4. Programs of work and dates for completion, together with provisions for any agreed extensions of time if the contract specifies an expected completion date, regardless of whether or not there is a requirement for the payment of liquidated damages.
  5. Insurance arrangements.
  6. Terms of payment.
  7. Variations to the works to be carried out.
  8. Grounds for termination of the contract itself and possibly for the termination of the employment of the contractor (in which case, the contract itself will continue, with the promoter being entitled to appoint a replacement contractor to complete the works and contra-charge the original contractor for any additional costs).
  9. The settlement of disputes.

 

  1. Definition of contract

Construction contracts are normally written and not verbal. The contract is an agreement between two or more parties or persons stating the rights, duties and obligations which are enforceable by law. The contract definition has been discussed by many authors and organizations as following:

(William R. Anson, 1939) has defined the contract as ‘a legally binding agreement made between two or more parties, by which rights are acquired by one or more to acts or forbearances on the part of the other or others’. The essential elements of this definition are as follows:

More…

To read entire paper, click here

 

How to cite this paper: Kotb, M.H.; Al Anwar, M.A., Baraka, H. (2019). In-depth View on the Construction Contracts; PM World Journal, Vol. VIII, Issue VI, August.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Kotb-Al-Anwar-Baraka-in-depth-view-on-construction-contracts.pdf

 


 

About the Authors


Prof. Dr. Mostafa H. Kotb

Cairo, Egypt

 

 

Prof. Dr. Mostafa H. Kotb is Professor of Structural Engineering in the Faculty of Engineering at AZHAR University in Egypt, since 2006. Fields of interest include behavior of design of steel structures, strengthening and repair of reinforced concrete elements for structure interactions, and rehabilitation of civil infrastructure,  He was Vice-dean from 2011 through 2015, Assistant chair of Al-AZHAR International Engineering Conference from 2000 till 2014.  For more information, visit https://www.linkedin.com/in/dr-mostafa-kotb-85ab353a/?ppe=1.  He can be contacted at Dr_mostafakotb55@yahoo.com

 


Dr. Mohamed Abo Al Anwar

Egypt

 

 

Dr. Mohamed Abo Al Anwar has a Ph.D of Structural Engineering in the Faculty of Engineering at AZHAR University in Egypt. He can be contacted at aboal.anwar@yahoo.com

 


Haytham Baraka

Cairo, Egypt

 

 

 

Eng. Haytham Baraka, B.Sc., PMP, CCP, PMI-SP, PMI-RMP, graduated from Zagazig University as a Civil Engineer, and his graduation project was construction management for the Cairo metro project. He worked in several roles of Civil Engineering (Site Engineer, Technical Office Engineer, Planning Engineer, Project Controls Manager). He is active in professional project management associations and is a certified Project Management Professional (PMP), Certified Cost Professional (CCP), Scheduling Management Professional (PMI-SP), and Risk Management Professional (PMI-RMP). For more information, visit https://www.linkedin.com/in/haytham-baraka-pmp-ccp-sp-rmp-apc-rics-candidate-765a9b28/

Mr. Baraka can be contacted at: h_baraka14@yahoo.com or  Haytham@built.com.sa

 

 

Artificial Intelligence Ethics

In the Project Management and Civil Engineering Domains

 

FEATURED PAPER

By Bob Prieto

Chairman & CEO
Strategic Program Management LLC

Florida, USA

 


Artificial Intelligence (AI) enabled systems, machines and algorithms undertaking cognitive tasks raise a myriad of ethical issues. These range from ensuring that the AI enablement does not lead to direct or indirect harm to humans or the broader environment which we are part of. Broader ethical questions also arise with respect to the moral status of AI and creating AI more intelligent than humans. These later items are not addressed in this paper.

The primary perspectives in this paper are twofold. First, the management of large complex projects and the issues associated with use of the predictive capability of AI, primarily machine learning. Second, a civil engineering perspective, where AI may be employed in design and other optimizations.

A recurring question should arise as we consider the use of AI by both project managers and engineers. Should we require AI ethics just as we require engineering ethics for engineers?

This question and other related ones are being debated today around projects, taking place under the auspices of the IEEE Standards Association and their Global Initiative on Ethics of Autonomous and Intelligent Systems that aim to address ethical issues relating to the creation of autonomous and intelligent systems. Their good work is not repeated here.

In this paper we look at some broad categories of ethical concerns and questions which arise as we consider the use of AI in both the design of civil engineering projects and broadly in the management of large complex projects.

The broad categories we will consider include:

  • Completeness of AI ethical considerations
  • Quality and limits of training data
  • Hidden biases
  • Confirmation of appropriateness of use for selected AI
  • Diagnosis vs. design
  • Accountability for AI impacts
  • Validation and verification
  • User data rights

Completeness of AI ethical considerations

While the broader field of AI is placing greater attention on AI ethics, these considerations are receiving inadequate attention in the areas of project management as well as in the civil engineering design space.

The challenges posed by ethical considerations arise in project management as predictive analytics moves beyond prediction towards optimization of execution and recovery plans. Do the optimization algorithms AI enables take sufficient account of various areas of social responsibility? Is optimization merely around first cost and schedule or is around life cycle performance in cost, environmental and social dimensions?

Similarly, does AI enabled design optimization sufficiently consider safety during construction as well as operation and even eventual facility decommissioning? Does it consider a broad range of operating scenarios or environments or is its intended use case narrower than what we may perceive?

Operating systems such as water and wastewater treatment systems optimized by AI must understand the potential wide range of implications for public health and safety as well as environmental impact from operating environments outside both the training data and optimization scenario selected.

We have begun to think about some of these ethical consideration with respect to autonomous vehicles, but they grow in importance as our roads become more intelligent in their own right and active, system level participants in autonomous transportation.

More…

To read entire paper, click here

 

How to cite this paper: Prieto, R. (2019). Artificial Intelligence Ethics in the Project Management and Civil Engineering Domains; PM World Journal, Vol. VIII, Issue VII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Prieto-artificial-intelligence-ethics-in-project-management-and-civil-engineering.pdf


 

About the Author


Bob Prieto

Chairman & CEO
Strategic Program Management LLC
Jupiter, Florida, USA

 

 

Bob Prieto is a senior executive effective in shaping and executing business strategy and a recognized leader within the infrastructure, engineering and construction industries. Currently Bob heads his own management consulting practice, Strategic Program Management LLC.  He previously served as a senior vice president of Fluor, one of the largest engineering and construction companies in the world. He focuses on the development and delivery of large, complex projects worldwide and consults with owners across all market sectors in the development of programmatic delivery strategies. He is author of nine books including “Strategic Program Management”, “The Giga Factor: Program Management in the Engineering and Construction Industry”, “Application of Life Cycle Analysis in the Capital Assets Industry”, “Capital Efficiency: Pull All the Levers” and, most recently, “Theory of Management of Large Complex Projects” published by the Construction Management Association of America (CMAA) as well as over 600 other papers and presentations.

Bob is an Independent Member of the Shareholder Committee of Mott MacDonald. He is a member of the ASCE Industry Leaders Council, National Academy of Construction, a Fellow of the Construction Management Association of America and member of several university departmental and campus advisory boards. Bob served until 2006 as a U.S. presidential appointee to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC), working with U.S. and Asia-Pacific business leaders to shape the framework for trade and economic growth.  He had previously served as both as Chairman of the Engineering and Construction Governors of the World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. Previously, he served as Chairman at Parsons Brinckerhoff (PB) and a non-executive director of Cardn0 (ASX)

Bob can be contacted at rpstrategic@comcast.net.

 

Interview with Harold Kerzner

 

Project Management Education Is a Life-long Quest

Interview with Harold Kerzner, PhD

Author, Professor, Director
International Institute for Learning

Interviewed by Yu Yanjuan
Journalist, Project Management Review: PMR (China)

Introduction to the interviewee

Harold Kerzner, PhD, Professor, author, is now Executive Director for Project Management at the International Institute for Learning (IIL). Having worked in the field of Project Management for more than 5 decades, he is definitely a witness of PM development.

He has written many books with the 60th one, Innovation Project Management, to be published later this year; he also lectures across the globe. His tremendous achievements have won a lot of recognition. Northeast Ohio Chapter of the Project Management Institute in the United States gives out the Kerzner Award once a year to one project manager in Northeast Ohio that has demonstrated excellence in project management. The Project Management Institute (International Organization) in cooperation with IIL has initiated the Kerzner International Project Manager of the Year Award given to one project manager yearly anywhere in the world that has demonstrated excellence in project management. The Project Management Institute also gives out four scholarships each year in Dr. Kerzner’s name for graduate studies in project management.

He gains satisfaction from what he has been doing. He keeps in contact with practitioners and insists on learning. As he said, expanding the latest PM thinking is where his passion lies.


 

Interview

Project Management Is Satisfying and Rewarding

Q1.      How would you like to describe the profession of Project Management?

Harold Kerzner (Kerzner):    There are very few professions in the world that provide workers with the satisfaction they can receive from project management. Most employees in a company, including project team members, may see and work on only a small component of the end result. They perform their job, perhaps in the earlier stages of a project, and may never see how their efforts contributed to the final result. The PM sees an idea drawn on a piece of paper being developed into a final product. The PM sees the entire picture and how everything must come together. Seeing the achievements of one’s work and knowing that you may have been responsible for this, is highly rewarding.

Q2.      What would you like to say to the newcomers in this profession?

Kerzner:        Project management is probably one of the best career choices you can make. In my view, it provides life-long satisfaction. Take advantage of every educational opportunity in project management. You will never be sorry.

 

Project Management Is “Leadership without Authority”

Q3.   What have you learned from early experience of working as a project manager? What’s your advice for future PMs?

Kerzner:        One of the first projects I managed had about 340 team members, of which I had some degree of control or authority over only about nine of them. Many of the team members were several pay grades higher than me, and yet I found myself in a position of having to provide them with some form of project leadership. What I learned very quickly was that project management is “leadership without authority.” PMs may have little or no direct authority over their team, may have no input into the team’s wage and salary performance reviews, may have no control over whom the functional managers assign to the project, may not be able to remove team members that are performing poorly without the participation of their functional managers, and cannot force team members assigned to multiple projects to work on their project in a timely manner. PMs of the future must learn that they will not always have the authority they expect or the ability to control worker performance through the wage and salary performance review process.

 

Project Management Was My Deliberate Choice

Q4.      You’ve been in this profession for more than 5 decades. Is project management an accidental or deliberate choice for you? What are the milestones in your career? In your eyes, what changes have happened in the field of project management?

More…

To read entire interview, click here

 

Editor’s note: This interview was first published in PMR, Project Management Review magazine, China.  It is republished here with the permission of PMR. The PM World Journal maintains a cooperative relationship with PMR, periodically republishing works from each other’s publications. To see the original interview with Chinese introduction, visit PMR at http://www.pmreview.com.cn/english/

How to cite this interview: PMR (2019). Project Management Education Is a Life-long Quest: Interview with Harold Kerzner; Project Management Review; republished in the PM World Journal, Vol. VIII, Issue VII, August. Online at https://pmworldlibrary.net/wp-content/uploads/2019/08/pmwj84-Aug2019-Yanjuan-Interview-with-Harold-Kerzner.pdf


 

About the Interviewer


Yu Yanjuan

Beijing, China

 

 

 

Yu Yanjuan (English name: Spring), Bachelor’s Degree, graduated from the English Department of Beijing International Studies University (BISU) in China. She is now an English-language journalist and editor working for Project Management Review Magazine and website. She has interviewed over forty top experts in the field of project management. In the past, she has worked as a journalist and editor for other media platforms in China. She has also worked part-time as an English teacher in various training centers in Beijing. For work contact, she can be

reached via email yuyanjuan2005@163.com  or LinkedIn https://www.linkedin.com/in/yanjuanyu-76b280151/.

 

 

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