Académique Documents
Professionnel Documents
Culture Documents
Page 1 of 38
Help
Forum
Blog
Contact
Live chat
Su
My account
UK Essays
Our Services
Instant Price
Order Now
Guarantees
You are here: UK Essays Dissertations Project Management Avoiding Project Failure
Our Services:
Essay Writing Service Dissertation Writing Services Coursework Help Writing Service Assignment Writing Service Marking and Proofreading Service More Services
Search
United Kingdom Essay
Shar e 0 0
130
UK Essays:
About UK Essays The UK Essays Team Our Essay Writers
O rder N ow
Shar e
Contact UK Essays Prices - Free Quote FAQs How This Works Buy Essay Help
Resources:
Essay Help Free Essays Essay Examples Dissertation Help Dissertation examples
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 2 of 38
Help
Forum
Projects make a vital contribution to industrialisation and hence the growth of Blog Contact Live chat a nation's economy. The importance of projects in the development of any nation cannot be overemphasized. This is demonstrated in various literatures explaining the success and failure of projects. Although projects are said to be important, its implementation can be an uphill task. Various researchers have discussed project management as a technique to help prevent against failure in projects. Others have established checklists to help prevent failure. Despite the increased project management awareness and these checklists, some projects still fail, Atkinson (1999). All projects are constrained by inherent risks; knowledge of these risks will play an important role in achieving success and avoiding failure. Usually projects consist of three stages consisting of the approval, execution and evaluation stages. If any of these stages is not managed properly it may result to the failure of the entire project. Failure or Success in projects is a multi-dimensional issue and may be influenced by so many factors. Some projects may have failed in project management practices including cost overrun, scope creep, delay in schedule etc, and other projects may fail in procurement practices. Despite these failures in the following areas the project may still be perceived as successful by the end users. An example is Wembley Stadium; despite all the issues associated with the project in terms of project management and procurement practices, it is still perceived to be successful and a state of the art stadium by the end users. This may result from the fact that it has hosted world class sporting events. Usually, projects are designed to meet stakeholder's objective. These objectives define the criteria for success of that project, and projects not satisfying these objectives are deem to fail. Effective communication and clarity in the stakeholder's objective is vital to the project manager. This thesis examines the causes of project failure and how these can be prevented, managed or controlled. It discusses project failure and success with the help of case studies in order to identify the critical success factors and reduce failure in the implementation of projects. This research is done with the anticipation of not only adding information to the body of knowledge already in existence, but also in defining the criteria for project success and identifying the variables involved. This will help organisations effectively manage projects.
Su
My account
1. 2 Ai m
The aim of this research is to carry out appraisal on the causes of project failure and the appropriate methods of avoiding project failure. This aim is intended to be achieved with the following objectives.
1. 3 O bj ect i ves
To provide a review of project management To analyze success criteria for projects To explore factors that causes project failure or success To examine methods of avoiding project failure
1. 4 Scope
This research is based on construction projects executed in the United Kingdom over the last two decades.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 3 of 38
Help
Forum
Chapter One, Introduction this introduces the research; topic highlighting the Blog Contact Live chat aim, objectives and scope of the research. Chapter Two, Literature review critically reviews the existing Literature regarding the subject. It establishes the definition of project success and the success and failure criteria / factors. Chapter Three, Methodology describes the methodology used to undertake this research. It demonstrates the fact that secondary data was mostly used in undertaking this research. Chapter Four, Case Studies - Case studies on projects from the UK construction Industry were discussed in this Chapter. These case studies were analysed and linked to the literature review chapter. Chapter Five consists of the analysis of the discussion and findings. This is derived from critically analysing the Wembley, Heathrow terminal five (T5) and Holyrood case studies. Chapter Six, Conclusion and Recommendation: This chapter concludes the research and suggests directions for further research.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 4 of 38
Help
Forum
goods and services. For example the work of an organisation may be to Blog Contact Live chat manufacture a vehicle on a continual basis, therefore the work is considered functional as the organisation creates the same products or services overand -over again and people hold their roles on a semi permanent basis. A project can be defined as having constraints (usually centred around time and resources, but also including all aspect of the process and the outcome); projects are processes that in many circumstances are core business for organisation. The diagram below show different levels in project management.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 5 of 38
Help
Forum
have developed and adopted, changes to the success criteria have been Blog Contact Live chat suggested but remain unchanged. In 2008, a survey undertaken by Booz Allen Hamilton (project management consultant) which comprises of 20 companies in engineering, procurement and construction; shows that 40 percent of all projects executed where faced with cost overruns and behind schedule. These overrun in cost and schedule has led to client's dissatisfaction on project performance; this view also agree with the research of M J Lang (1990). Therefore effective project management is very vital in such a volatile business environment.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 6 of 38
Help
Forum
Blog Contact chat manager, who is assigned to the * No one is in control, not even Live the project project but not given the free hand to manage the project. This is most problem encounters in matrix organisation * Project lacks structure caused by things such as critical tasks being under rated * Inaccurate estimates. A top- down plan causes constraints on the prediction of the cost of the project * Poor risk management. The project initiation stage is not properly planned * Insufficient non-resources are not allocated to the project; for instance, it is not possible for a project to succeed if the right resources are made available for that project * Incompetent project management skill * Project changes from its original objective and goals. This can occur due to additional requirement from the client Pinto and mantel (1990) argue that the major causes of project failure are changes in the project environment, as it goes out of hands of the management.
Su
My account
2. 7 D ef i ni ng Proj ectSuccess
Lewis (2005) states that project success can be defined as meeting the required expectation of the stakeholders and achieving its intended purpose. This can be attained by understanding what the end result would be, and then stating the deliverables of the project. Shenhar et al. (2001) state the opposite: that project success is commonly judged by time and budget goals criteria, whereas in some cases this does not apply to some projects. Thiry (2006) argues that project success can only be defined if executives are able to consider the contribution of benefits and if the project is able to achieve these measures in relation to resources, competencies and complexity within the project parameters.
2. 8 Key Perf orm ance I ndi cat ors ( KPI s)as a M easurem entf or Proj ectSuccess
The purpose of the KPIs is to enable measurement of project and organisational performance throughout the construction industry (The KPI Working Group 2000). Collins (2000) advocates that the process of developing KPIs involves the consideration of the following factors: * KPIs are general indicators of performance that focus on critical aspects of output or outcomes * Only a limited, management number of KPIs is maintainable for regular use. Having too many (complex) KPIs can be time-and resource-consuming * The systematic use of KPIs is essential as the value of KPIs is almost completely derived from their consistent use over a number of projects * Data collection must be made as simple as possible. * A large sample size is required to reduce the impact of project specific variables. Therefore, KPis should be designed to use on every building project. * For performance measurement to be effective, the measures must be acceptable, understood and owned across the organisation * KPIs will need to evolve and it is likely that a set of KPIs will be subject to change and refinement
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 7 of 38
Help
Forum
Blog Live * Graphic delays Contact of KPIs need to bechat simple in design, easy to update and accessible. Key Performance indicators for measuring project success can be illustrated with the help of the diagram below (Albert & Ada, 2004). They identified the following as the measurement of project success: Cost, time, quality, commercial profitable/value, environmental performance, user expectation/ satisfaction, health and safety and participants' satisfaction. This will help in explaining what the project success might mean to different stakeholders.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 8 of 38
Help
Forum
This is quite a different approach, because the focus moves from the present Blog Contact Live chat success criteria to the future, in a way that a project can be unsuccessful during execution if it is judged by criteria like cost and quality, but in the long term it can turn to be a thriving story. A good example of this hypothesis is hosting the Olympic Games in Athens, Greece, which received mass criticism both during the planning period, due to delays in construction time, and when it was finished, due to huge cost. But the benefits that Greece will gain from the Olympic Games can be fully understood after 5 or maybe 10 years from the hosting year (Athens2004.com). All the above success criteria "should be simple and attainable and, once defined, they should also be ranked according to priority" (Right Track Associates, 2003). Straightforward criteria are easy to understand by everyone involved in the project and therefore commitment is guaranteed. Unrealistic criteria can put a failure' label on many projects because of the unreachable standards, can generate low team esteem and team performance in future projects and finally generate unfair disappointment among stakeholders. As for priority issues, it is inevitable that things will go wrong and the project manager will be in a tough situation where he must make the right decision having in mind that he has to sacrifice the least important success criterion. Also Shenhar et al (1997) are of view that project success can be seen from the four area: Project efficiency, impact of the project to the customer, business success and finally what the project holds for the future. This was further explain in the diagram in 3.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 9 of 38
Help
Forum
A classic example of different perspective of successful project is the Sydney Blog Contact Live chat Opera House project (Thomsett, 2002), which went 16 times over budget and took 4 times more to finish than originally planned. But the final impact that the Opera House created was so big that no one remembers the original missed goals. The project was a big success for the people and at the same time a big failure from the project management perspective. On the other hand, the Millennium Dome in London was a project on time and on budget but in the eyes of the British people was considered a failure because it didn't deliver the awe and glamour that it was supposed to generate (Cammack, 2005). "In the same way that quality requires both conformance to the specifications and fitness for use, project success requires a combination of product success (service, result, or outcome) and project management success" (Duncan, 2004). The difference between criteria and factors is fuzzy for many people. The Cambridge Advanced Learner's Dictionary describes a criterion as "a standard by which you judge, decide about or deal with something" while a factor is explained as "a fact or situation which influences the result of something". Lim & Mohamed applied those definitions to project success and illustrated the difference. It is clear now that critical factors can lead to a series of events which ultimately meet the overall success criteria of the project, so they should not be used as synonymous terms. Project success can be seen from two different perceptive, the micro and macro viewpoint (Lim & Mohamed, 1999). This can help in better understanding of what project success means to different people.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 10 of 38
Help
Forum
groups. The identified factor groups are: factor related to project manager, Blog Contact Live chat factor related to project team members, factor related to the project itself, the organisation handling the project and the factor related to the external environment in which the project takes place. The diagram below shows this in more detail.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 11 of 38
Help
Forum
It is vital to have a good project team to work with, with core skills that can Blog Contact Live chat be evolved to core competences and capabilities for the whole organisation. All members of the project team must be committed to the success of the project and the overall mission of the company. Apart from their skills and commitment, project team members should have clear communication channels to access "both the functional manager and the project manager within a matrix organization. Effective management of this dual reporting is often a critical success factor for the project" (PMBOK Guide, 2004, p215).
Su
My account
2. 9. 4 Sum m ary
It is critical for a project manager to understand what the stakeholders consider as a successful project. In order to avoid any surprises at the end of the project, there is an urgent need to identify the different perspectives of what success means before the project goes live. It is also vital to remember that success criteria are the standards by which a project will be judged, while success factors are the facts that shape the result of projects.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 12 of 38
Help
Forum
Success criteria have changed considerably through time and moved from Blog Contact Live chat the classic iron triangle's view of time, cost and quality to a broader framework which includes benefits for the organisation and user satisfaction. An additional framework to capture success criteria depending on time was also described. As for success factors, they were grouped into five distinct sets and the literature views were find to contradict on the issue of how critical a project manager is to the final success of the project. A common factor mentioned by many authors is senior management support for the project and it is recognized as one of the most important factors of all. In conclusion, early definition of success criteria can ensure an undisputed view of how the project will be judged and early detection of success factors will guarantee a safe path to deliver success.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 13 of 38
Help
Forum
Su
My account
3. 4. 1 D eskt op St udy
The researcher analysed the work of various authors and authority on the subject matter. Information regarding project failure was obtained through the following including journals, published books, databases and Government websites.
3. 4. 2 Journal s
In this study, the following journals were reviewed and analysed because they are well referenced. They are the work carried out by professional in the field with varied years of experiences over years. They help in clarifying the subject of this research; the journal include European Journal of Innovative Management
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 14 of 38
Help
Forum
Blog Contact chat International Journal of Project Live Management Project Management Journal Advanced Management Journal Journal of Marketing Research Journal of Operation Management International Journal of Production Research Strategic Management Journal International Journal of Operation and Production Management
Su
My account
3. 4. 3 D at abases
Databases contain very vital information and in this research I sought for information that relates to project management in different industries. ABI Inform Emerald JSTOR Proquest Science Direct Scopus Web of Knowledge Wiley Interscience Google Scholar Joule Library, The University of Manchester Computer World EBSCOhost
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 15 of 38
Help
Forum
any quantitative study is formed. For instance when an existing knowledge is Blog Contact Live chat carefully considered, key variables and relationships are uncovered. Because no research project exists as an island, previous studies must constitute part of the process of discovery. According to Ghauri and Gronhaug (2005:52), a literature review is principally intended to: * Frame the problem being studied * Identify relevant concepts, methods/ techniques and facts; and * Position the study in terms of its intended contribution to knowledge
Su
My account
3. 4. 6 Case St udi es
Case studies provide an opportunity for a problem to be studied in depth (Bell 2005) Yin (2003) explains that case study approach facilitates the use of multiple sources of evidence. Ghauri and Gronhaug (2005:114) stressed that case studies are especially useful when the phenomena being investigated cannot practically be studied outside its natural environment and / or when variables being studied are not easy to quantify. The researcher has used some construction case studies to highlight failure and success. These case studies include : Heathrow BAA terminal 5 Wembley Stadium Holyrood Parliament building These case studies were used by the researcher because they cut the application of project management, their sizes, complexity and financial implications involved in the development of such projects. These projects also reflected the various processes which could result to failure or success if managed appropriately. Such processes include effective project management practices, procurement practices, management of stakeholders etc. Several factors and lessons learned were identified and highlighted by the researcher to ensure best practice in the execution of projects.
3. 5 Li mi t at i ons
Due to the time constraint in this research, the researcher based his case studies on the construction industry. Other industries should have been researched to establish the similarities and challenges involved in avoiding project failure. Case studies of projects in developing nations should have also been discussed, to establish if Government policies, geographical locations and etc also impact projects. Secondly, the literature review does not give a wider scope, covering project success and failure in all industrial sectors. Moreover data does not look at more than one company over a period of time to gain valuable and reliable data. Finally there are insufficient data on one definition of project success and failure; many authors work would have been reviewed before arriving at a conclusion.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 16 of 38
Help
Forum
common ones in the construction industry and in terms of applications of Blog Contact Live chat project management. They are transferable to construction projects in any other geographical location in the world, though every project has its uniqueness. They are The Holyrood (Scottish Parliamentary Building project) These various case studies will be reviewed in detail to see examine which factors contributed to success or failure of these project.
Su
My account
4. 1. 1 Proj ectScope
Design and building of a stadium for staging football, rugby league and music events, also could be adapted to stage major athletic competitions with a removable platform, rather than a permanent running track. Incorporated in the project are hotel, office accommodation and a visitor centre. Cost of Wembley Stadium project: Budgeted cost for this project was about 751M but due to design changes and unrealistic cost estimate the project cost more than budgeted. Parties involved: Wembley National Stadium Limited (WNSL) is the client while Multiplex an Australian construction company is the major contractor with many subcontractors. Purpose of the Project: To design and build a stadium for staging football, rugby league and music events.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 17 of 38
Help
Forum
4. 2. 1 R eason f or Choosi ng Thi s Case Blog Contact Live chat ( H EATH R O W TER M I N AL 5)
I chose this case because it is a project that cut across the project management best practice. Also it show how important it is for every project participant to be up and committed in ensuring that a project is delivered as agreed. This project is intended to revolutionize United Kingdom construction project management practice, leading Brady et al. (2008) to classify the development as a megaproject'.
Su
My account
4. 2. 3 T5 Cont ract
The main objective of the Agreement was to create a unique contract under which BAA retained all the risk relating to the project. Additionally, the contract needed to be flexible as BAA appreciated that their requirements would change during the course of the contract The contract is generally considered to be a balanced agreement, which facilitates appropriate relationships and behaviours. Drafted in a nonadversarial style, the negative and potentially confrontational aspects of traditional construction contracts were replaced by a commercial model and policy that created commercial tension without erecting commercial barriers. While not explicitly derived from the NEC form, the two contacts have aspects of partnering and integrated working in common. The contract was designed to enable all participants to concentrate on: The root cause of problems and not their effects
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 18 of 38
Help
Forum
Blog within integrated Contact teams Live chat success in an uncertain Working to deliver environment The proactive management of risk rather than the avoidance of litigation Note: The T5 agreement was supported by BAA's novel risk insurance policy. Each first-tier supplier was responsible for appointing, developing and managing their own supply chain (second' and lower' tier suppliers/subcontractors). BAA expected the contractual arrangements within the supply chain to conform to the principles of the T5 agreement, for example, to avoid risks being transferred down the chain to those least able to carry them and to promote cooperative working methods. To this, BAA recommended the use of modified version of the NEC Engineering and Construction Contract (ECC) to appoint second tier suppliers.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 19 of 38
Help
Forum
Blog of risk Contact Transfer Remain Flexible Price in advance Integrated teams Profit at risk BAA manages the risk Penalties Active risk management Defined scope Reimburse properly incurred Employer's team Profit levels pre agreed Skill and Care Emerging pre-planned scope Compliance/remedies driven Single integrated team values Silos Exceptional performance
Live chat
Su
My account
Performance are not exceptional Goals/Targets Goals/target sometimes are not well defined Liability Conventional principle do not accept liability BAA (T5) clearly went for relationship management. They understood that they were building a mega project which would have been difficult to transfer the risks involved to a contractors considering the potential changes in the project. They made the decision that they are better placed to manage the risks. Also, they had studied similar projects around the world and the outcome was not pleasing to them to follow the conventional way of doing a project. It seems that all the projects they examine both in the UK and abroad had cost overrun and delayed completion. So they took the decision to manage the project themselves. It was a good decision but there were always elements of what if . BAA concluded that without the adoption of a fundamentally different delivery methodology, the T5 project would have exceeded budget by more than 1 bn.
4. 3 The H ol yrood Proj ect The Procurem entR out e and Const ruct i on M anager:
The decision to adopt construction management as the procurement vehicle for the construction of Holyrood building was found to be one of the most significant, if not the most significant decision taken during the course of the project. Construction management is one of the relatively new fast track' methods of construction procurement, developed in 1980s.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 20 of 38
Help
Forum
Under this arrangement, (construction management design) tendering and Blog Contact Live chat construction overlap. The client employs a designer and, separately, a construction manager who is engaged as a fee earning consultant to programme and co-ordinate the design and construction activities. The actual construction activities are divided into three packages which are sequentially put out to tender and are undertaken by trade contractors who are contracted to the client. Construction management offers the advantage of speed but with the disadvantage of price uncertainty until the last package contract has been leased.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 21 of 38
Help
Forum
increase in cost originally budgeted for the project; dispute between the main Blog Contact Live chat contractor Multiplex and the subcontractors over payment and other issues. But at the end the project received several awards and at the same time termed as a successful project by the stakeholders. Project success can be seen from the following point of view:
Su
My account
5. 2. 2I m pacton t he cust om er
* Fulfilling customer needs * Solving major organisational problems * Actually used by the customer * Level of customer satisfaction
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 22 of 38
Help
Forum
Some organisations may use additional measures of efficiency. For Blog Contact Live chat example, the number of design changes before the final design release, cost of material and tooling, efficiency and yield of production ramp (WheelWright & Clark, 1992). Other measures may involve efficiency of reliability, safety etc. However one must realize that all of these measures relate to successful implementation of project execution, and does not mean total success.
Su
My account
5. 4 Success-Ti m e D ependent
Project success, therefore should be considered as an integrated concept in which both short-term and long-term implication are considered. The relative importance of each of these dimensions is more important at different times with respect to the moment of completion. The project efficiency dimension is the most important. In fact it is used for measuring deviation from plans and looking at various efficiency measures may be the best way for monitoring the project progress and control its course. Once the project is
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 23 of 38
Help
Forum
completed, however the importance of this dimension gradually declines. As Blog Contact Live chat times goes by, it matters less if the project has met the resource constraints; in most cases after about a year, it is completely irrelevant. In contrast, after project completion the second dimension, impact on the customer and customer satisfaction, becomes more relevant. The third dimension, business and direct success can be determined later. It takes time before a new product or delivered project starts bringing profit or establish market share. Preparing for the future can only be recognised and assessed much later. The long-term benefits of projects will affect the organisation after say three to five years. These can be illustrated using the diagram below. In contrast, after project completion the second dimension, impact on the customer and customer satisfaction, becomes more relevant. The third dimension, business and direct success can be determined later. It takes time before a new product or delivered project starts bringing profit or establish market share. Preparing for the future can only be recognised and assessed much later. The long-term benefits of projects will affect the organisation after say three to five years. These can be illustrated using the diagram below.
Su
My account
5. 5 Earned Val ue M anagem entas a M et hod ofM easuri ng Proj ectSuccess or Fai l ure
Earned value (EV) is a management tool for tracking and communicating a project status. Earned value management (EVM) will let you know the actual state of the project by comparing the current project performance against plan. Knowing the project's performance will help in taking action needed to ensure that the project is completed on time and within budget. From project magazine, earned value management is defined as, A methodology used to measured and communicate the real physical progress of a project taking into account the work completed, time taken and the cost incurred to complete the work, whereas field operative defines it as, the physical work accomplished plus the authorized budget for this work. The sum of the approved cost estimates, (which may include overhead allocation) for activities, (or portions of activities), completed during a given period, usually project-to-date. Therefore earned value differs from the usual budget verses actual cost incurred model, in that it requires the cost of work in progress to be quantified. The project manager needs to agree the project scope, create a work breakdown structure (WBS) and assign budget to each work package, the lowest level of the WBS, then create a schedule showing the calendar time it will take to complete the work. The overall plan is baseline (plan value) and used to measure performance throughout the project. As each work package is completed (earned), it is compared with planned value showing the work achieved against plan. A variance to plan is recorded as a time or schedule deviation. It is necessary to obtain the actual the actual costs incurred for the project from the organisation's accounting system. The cost is compared with the earned value to show an overrun or under run situation. Earned value provides the project manager with an objective way of measuring performance and predicting future outcomes. This can also help in reporting progress with greater confidence and highlight any overrun earlier. It also enables the management team to make cost and time allocation decisions earlier.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 24 of 38
Help
Forum
5. 6 Val ue t he Cl i ent or U ser D eri ved From a Blog Contact Live chat Com pl et ed Proj ectas a M easure ofProj ect Success/Fai l ure
Value management in its broadest sense, is the benefit to the client. That is, the project is worth doing and can be quantified in business terms not necessarily in financial terms for example, creating a better working environment. Value means ensuring that the right choices are made about obtaining the optimum balance of benefit in relation to cost and risk. Therefore value management provides a structural approach to the assessment and development of a project to increase the likelihood of achieving these requirements at optimum whole life value for money. The principles centre on the identification of the requirements that will add value in meeting the business need. Workshops led by value management facilitators are often used to identify value to the business. These workshops should involve stakeholders and members of the integrated project team. Value management aims to maximise project value within time, cost and quality constraints. However it should be recognised that improving whole life project value sometimes requires extra initial capital expenditure. The key difference between value management and cost reduction are that value management are: Positive, focused on value rather than cost, seeking to achieve an optimum balance between quality, whole-life cost and time. Value management structured, auditable and accountable Multidisciplinary, seeking to maximise the creative potential of all project participants working together All projects are likely to include some unnecessary cost, however, cutting cost without proper analysis is likely to lessen value; therefore only unnecessary cost should be removed where wasteful processes and /or practices contribute to cost. There most be no loss of functionality or quality, otherwise value is diminished or reduced. For instance, the construction of Tunstall Western Bypass, a high-risk 12M project is completed 10weeks ahead of schedule, within budget and to the agreed high quality. The final cost of the project was reduced by 800,000 through joint value management and value engineering.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 25 of 38
Help
Forum
Blog
Contact
Live chat
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 26 of 38
Help
Forum
terms of ROI, more often user experience improvements are an ongoing and Blog Contact Live chat iterative process. For instance after completion of the Wembley stadium project, it received prestigious award owing to the fact that the stakeholders were satisfied with the project ; though the general public criticised the stadium due to cost over run and lots of delays the project encountered but the client and user were seeing the long tern return on investment.
Su
My account
5. 8 Di scussi on on Causes ofProj ectFai l ure and appropri at e M et hods ofAvoi di ng Such Fai l ure 5. 8. 1 Com pressed or U nreal i st i c Ti m el i nes
This was seen in Wembley Stadium project; there was a tight schedule associated with this project owing to the fact that the client wanted to stage FA cup final. In this kind of project (innovative), adequate time need to be exercise to enable proper planning. So compressed or unrealistic deadline can cause reduction in project scope, or even lead to extension of time from the contractor. Also this can cause conflict between the contractors and the subcontractors (Wembley National Project). Unrealistic timelines are often the source of project failure. Compression of schedule can be cause by delays but the deadline are not also pushed back to accommodate the lapses caused by the delay. Instead, activities at the end are done more quickly and with les care and attention.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 27 of 38
Help
Forum
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 28 of 38
Help
Forum
spending plans as well as to proactively track spending and respond Blog Contact Live chat immediately to potential issues in order to prevent failure. A good example of a poorly develop budget WNSL. The contractors Multiplex did not carry out the estimate to know the budget, and this is one of the issues that contributed to delays and cost overrun in that project.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 29 of 38
Help
Forum
Blog managers Contact chatstakeholders in establishing and Project should work Live with key prioritizing project requirements as well as reviewing budgets and schedules. Additionally, all people involved in the project should have periodic joint sessions, to ensure that same communications on project expectations are received by everyone.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 30 of 38
Help
Forum
others. This meeting serve to introduce the project team and formalize the Blog Contact Live chat project management aspects of the overall project. Secondly, it provides an opportunity for the project team to receive a more detailed briefing from the project team and to finalise user and stakeholder involvement.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 31 of 38
Help
Forum
* Allocating responsibility for managing each risk with the party best able to Blog Contact Live chat do it There are two stages in the process of project risk management; risk assessment and risk control. Risk assessment can take place at any time during the project. However, risk control cannot be effective without a previous risk assessment. Similarly most project managers think that having performed a risk assessment they have done all that is needed. For too many projects spend a great deal of effort on risk assessment and ignore risk control completely.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 32 of 38
Help
Forum
Blog
Contact
Live chat
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 33 of 38
Help
Forum
along the way, such as some reduction in scope, additional time and/ or Blog Contact Live chat additional cost, but with good project planning and timely intervention where required, these can be minimized. A project manager needs to be trained in these techniques not only to recover a falling project, but more importantly, reduce the chances of creating one himself in the future. In conclusion, failure or success in projects is a multi-dimensional issue and may be influenced by so many factors. Some projects have failed in many areas for instance in management and procurement (Wembley) but still perceived as successful projects by its stakeholders. In essence projects are designed to meet stakeholder's objective; and it is these objectives that defines the criteria for success of that project. Any project not satisfying these objectives are deemed to fail. Also it has been noted that project success does not come easily and failure in project can also be attributed to lack of facilities, training and management by organisations to bring projects to successful completion. With many definitions by different practitioners concerning project management, the criteria for success lies on cost, quality and time mainly. From the literature of this research study, it was noted that definition of project success is difficult in the sense that success has different meanings for different people. It was also identified in the literature that cost overrun contributed to about 40% of failures in projects. Therefore for a project to be successful, the methodology employed for the execution is very important and this depends on the size of the project.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 34 of 38
Help
Forum
within the integrated project team, who should fully understand the risks for Blog Contact Live chat which they are responsible. Client should not make any financial commitment to a project or a major change, unless the integrated project team has identified and assessed the risk, allocated them and ensured that management action is in place. The risk should be managed actively throughout the life of the project in accordance with the risk management plan; the plan should deal with all risk, whether retained by the client or transferred to others in the integrated project team. The business case should include a time element and the risks of that changing should be kept constantly under review.
Su
My account
APPEN D I X APPEN D I CE A
Heathrow Terminal 5 http://www.arnewde.com/architecture-design/architecture-building-of-scottish -parliament-in-holyrood-edinburgh/ REFERENCES A Guide to Project Management Body of Knowledge, 2004, 3rd Edition, Project Management Institute, USA Anonymous (2006) Avoiding Failure, Best's Review Jul; 107, 3; ABI/INFORM Global, p.70 Atkinson, A.R. (1999) The role of human error in construction defects, Structural Survey, Volume 17. Number 2. pp. 231-236. Atkinson, R. ( 1999) Project management: cost, time and quality, two best guesses and a phenomenon, it's time to accept other success criteria, International Journal of Project Management Vol. 17, No. 6, pp 337-342, [Electronic]. Association for Project Management (2006) APM Body of Knowledge (5th Edition) Association for Project managers, High Wycombe, UK Baguley, 1995, Managing Successful Projects: A guide for every manager, Pitman Publishing, London UK, p8 Baker, B.N., Murphy, D.C, & Fisher, D. (1988). Factors affecting project success. Barnes N.M.L and Wearne, S.H. (1993) The future for major project management, handbook, Van Nostrand, New York. Barnes N.M.L. and Wearne, S.H. (1993) The future for major project management, Project Management Group, Vol. 11, No.3 Belassi & Tukel, 1996, A new framework for determining critical Bell, J (2005) Doing your Research Project. 4th ed, open university press England Belout, A. (1998) Effects of human resources management on project effectiveness and success: toward a new conceptual frame, Long Range Planning, Vol 34, 2001: 723-724 Bienkowski, D. (1989) Ten Causes of Project Busts, Computerworld, Feb.13; 23, 6; ABI/INFORM Global, p.99 Bignell V., Fortune J., 1984. Understanding systems failures. Manchester: University of Manchester Press.
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 35 of 38
Help
Forum
Bowers A.J; YU A.G., Flett, P.D. (2005) Developing a value- centred Blog Contact Live chat proposal for assessing project success, International Journal of Project Management 23 (2005) 428-436 Booz Allen Hamilton (2006) Capital Project Execution in the oil and gas industry, New York: Allen and Booz Inc. Bryman, A. and Bell, E. (2003) Business research methods, oxford: oxford university press Cambridge University, The Principles of Project Management - 1st session, MSc in Project Management, Lancaster University Checkland P.B., 1981. Systems thinking, systems practice. Chichester: Wiley and Sons. Cleland & Ireland, 2002, p210, Project Management: Strategic Design and implementation, McGraw-Hill Professional, USA Cleland & Ireland, 2004, Project Manager's Portable Handbook, 2nd Edition, McGraw-Hill, USA, page 210 Cooke-Davies, The "real" success factors on projects, International Journal of Project Management vol.20, pp. 185-190, [Electronic] Cleland, D.I. (1986). Measuring success: The owner's viewpoint Proceedings of the 18th Annual Seminar/ Symposium (Montreal, Canada), 6 -12. Upper Darby, PA: Project Management Institute. de Wit, A. (1986). Measuring Project Success: An illusion Proceedings of the 18th Annual Seminar/ Symposium (Montreal, Canada), 13-21. Upper Darby, PA: Project Management Institute. Dvir D., Raz T., Shenhar A.J. (2003) Empirical analysis of the relationship between project planning and project success, International Journal of Project Management, Vol.21,pp.89-95 Duncan, 2004, Defining and Measuring Project Success, Project Management Partners, [Online],Available:http://www.pmpartners.com/resources/defmeas_success.html, [2005, Nov.4] Duncan, William R., ed., (1996) A Guide to the Project Management Body of Knowledge, Project Management Institute, Upper Derby, PA. Evans, 2005, Overdue and over budget, over and over again, The Economist Jun 9th 2005, [Electronic] Fisher (2004) Researching and writing a dissertation for business students, England: Pearson Education Ltd Fortune, J., White, D., 2006. Framing of project critical success factors by a systems model. International Journal of Project Management, [Online]. 24 (2006), pp. 53-65 Available at: www.elseiver.com/locate/ijproman [Accessed 10 May 2009] Fretty, P., 2006. Why do projects really fail? PM Network, [Online] 20(3), pp. 44-49 Available at http://proquest.umi.com [Accessed 13 October 2009] Freeman, M., & Beale, P. (1992). Measuring project success. Project Management Journal, 23(1), 8-17. Ghauri, P.and Gronhaug, K. (2005) Research methods in Business studies, 3rd ed., London: FT.Prentice Hall Goldratt, Eliyahu M., (1997) Critical Chain, North River Press, Great Barrington, MA. Goldratt, Eliyahu M., (1994) It's Not Luck, North River Press, Great Barrington, MA.
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 36 of 38
Help
Forum
Gray C.F., Larson E.W., 2006. Project Management: The Managerial Blog Contact Live chat Process. International Edition New York: McGraw Hill Hammer, M., & Champy, J. (1993). Reengineering the corporation. New York: Harper Business. Hesse-Biber, S.N and Leavy, P. (2006) The practise of quality research USA: Sage Publications Jacob, Dee, (1998), Instruction to Project Management the TOC way- A Workshop, The A.Y. Goldratt Institute, New Heaven , CT. Kerzner, H. (2006) Project Management- A system approach to planning, scheduling and controlling, John Willy, USA Kerzner, H., 2006. Project Management: a systems approach to planning, scheduling, and controlling. 9th ed. New Jersey: John Wiley and Sons. Kerzner, 2001, Project Management - A Systems Approach to Planning, Scheduling and Controlling, 7th Edition, John Wiley & Sons, New York Kerzner, 2001, Strategic planning for project management using a project management maturity model, Wiley & Sons, New York, page 158 Kerzner, H. (1994), Project Management: A system approach to planning, scheduling, and controlling, 4th edition. New York: Van Nostrand Reinhold Lang, M. (1990) Project Management in the oil and gas industry Vol. 8 No 3 PP. 159-162: Butterworth- Heinemann Lim & Mohamed, 1999, Criteria of project success: an exploratory reexamination, International Journal of Project Management Vol. 17, No. 4, pp. 243-248, [Electronic] Maxwell, A.J. 1996. Qualitative Research Design: An interactive approach. London: Sage Publications Maylor, 2005, Project Management, Third Edition with CD Microsoft Project, Prentice Hall, UK, p288 Muller, R. and Turner, R. (2007), The Influence of Project Managers on Project Success Criteria and Project Success and type of Project, European Management Journal, Vol. 25, No. 4, pp. 298-308 Munns, A.K. and Bjeirmi, B.F. (1996) The role of project management in achieving project success, International Journal of Project Management, Vol. 14, No. 2, pp.88-87 Office of Government Commerce, 2005. Common Causes of Project Failure. [Online] London: Office of Government and Commerce. Available at http://www.ogc.gov.uk/documents [Accessed 16 November 2008] Patrick, Frances S., (1999a) Getting out from Between Parkinson's Rock and Murphy's Hard place, PM Network, 13(4), 57-62 Patrick, Frances S., (1991b) Programme Management-Turning Many Projects Penguin English Dictionary (1992) Pinto, J.K., & Mantel, S.J. (1990). The causes of Project failure. IEEE Transaction on Engineering Management, 37(4), 269-276. Pinto, and Slevin, D. (1988) Critical Success Factors across the Project, Project Management Journal, 19(3): 67-75 PMI. Guide to the project management body of knowledge. 3rd ed. Newton Square (PA): Project Management Institute; 2004. Project Management Institute (2004) A Guide to the Body of Knowledge (3rd edition), Project Management Institute Pennsylvania, USA
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 37 of 38
Help
Forum
Rad & Levin, 2002, The Advanced Project Management Office, St.Lucie Blog Contact Live chat Press, USA, page 18 Right Track Associates, 2003, Defining project success, [Online], Available: http://www.ittoolkit.com/cgi-bin/itmember/itmember.cgi? file=assess_pmsuccess.htm, [2005, Nov.5] Shenhar et al. (2001) Project Success: A Multidimensional Strategic Concept, www.irpjournal.com Saunders, M. Lewis. And Thornhill, A. (2003) Research Methods for Business Student, Essex: Ft Prentice Hall The Holyrood inquiry, p78 Auditor General for Scotland Report of September 2000, Para 3.20 as cited in the Holyrood inquiry, p85 The official website of the Athens 2004 Olympic Games, [Online], Available: http://www.athens2004.com/en/Legacy, [2005, Nov.6] The Standish Group International, 2001, Extreme CHAOS: The Standish Group International, [Electronic] Thiry, M. (2006) The definition of Success, PM Network, Dec, Vol. 20 Issue 12, pp21-22 Thomsett, 2002, Radical Project Management, Prentice Hall, USA, page 16 Tinnirello, 2002, New Directions in Project Management, Auerbach, USA, page 14 Torp, Austeng & Mengesha, 2004, Critical Success factors for project performance: a study from from-end assessments of large public projects in Norway Tukel & Rom, 1998, Analysis of the Characteristics of Projects in diverse industries, Journal of Operations Management, Vol 16, pp43-61 Turner & Muller, 2005, The project manager's leadership style as a success factor on projects, Project Management Institute, Vol. 36, No. 1, pp 49-61 Turner JR. The management of large projects and programmes for web delivery. Aldershot; Gower; 2004. Turner JR. The handbook of project based management. 2nd Ed. London: Mc Graw-Hill; 1999. Wheel-Wright, S.C., & Clark, K.B. (1992). Revolutionizing Product development. New York: The Free Press Wideman, 1996, Improving PM: Linking Success Criteria to Project Type, paper presented to the Southern Alberta Chapter, Project Management Institute, Calgary Symposium Yin, R. (2003) Case study research: Desing and methods, 3rd ed., London: Sage Publication
Su
My account
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013
Page 38 of 38
Help
Forum
Blog
Contact
Live chat
Su
Order a custom dissertation proposal - 50% off
My account
G ood
N eut ral
Poor
SIGN UP
Find us on Facebook
Follow us on Twitter
Copyright 2003 - 2013 - UK Essays is a trading name of All Answers Ltd. All Answers Ltd is a company registered in England and Wales Company Registration No: 4964706. VAT Registration No: 842417633. Licensed under the Consumer Credit Act under Licence No: 0612201. Registered Data Controller No: Z1821391. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Fair Use Policy Terms & Conditions Privacy Policy Cookie Info Complaints Policy Get Verified Fraud Writer Jobs Corporate Client Services Sitemap
http://www.ukessays.com/dissertations/project-management/avoiding-project-failure.php
1/18/2013