Showing papers in "Journal of Management in Engineering in 2003"

Labor Productivity Drivers and Opportunities in the Construction Industry

Abstract: The study of labor productivity in the construction industry is gaining increasing attention as the industry faces multiple problems related to its workforce. This paper presents the results of a survey instrument applied to determine the relative level of relevance of construction labor productivity drivers and opportunities. Owners, general contractors, electrical contractors, mechanical contractors, consultants, and others participated in this survey. Management skills and manpower issues were identified as the two areas with the greatest potential to affect productivity according to survey respondents. Surprisingly, external factors, which are often cited as a major cause for reduced productivity in the construction industry, were considered to be one of the least relevant productivity drivers. These results suggest that respondents consider the improvement of labor productivity within their reach and control rather than determined by external conditions.

Partnering in construction: Critical study of problems for implementation

Abstract: Over the years, the implementation of a construction project from planning to completion is full of potential claims and intractable disputes. As an innovative procurement method in the constructio...

Risk Allocation and Risk Handling of Highway Projects in Taiwan

Abstract: Risks always exist in construction projects and often cause schedule delay or cost overrun. Risk management is a key issue in project management. The first step of risk management is risk identific...

Virtual Teams: Guide to Successful Implementation

Abstract: The successful initiation and execution of a virtual team is gaining increasing attention in the design and construction community. From opportunities to integrate international and multidisciplinary teams to the opportunity to leverage the best resources in an organization on a given project, virtual teams can transform the concept of project planning and execution. However, potential barriers exist in several areas to the successful implementation of virtual teams. The needs of increased management emphasis, social and cultural understanding, and emphasis on common goals are only a few of the nontechnical factors that can turn successful virtual teaming into virtual frustration. When combined with traditional technical challenges including compatibility of systems, security, and the selection of appropriate technologies, the line between leveraging virtual technologies for enhanced solutions and introducing additional complications into the project process is one that can be easily crossed. This paper presents the findings of research that addresses the opportunities and potential barriers to successful virtual teams in the engineering, procurement, and construction industry. Combining results from current research, industry practices, and early results from nonconstruction industries, the research findings provide an initial path to successful virtual team implementation.

Benchmarking, benchaction, and benchlearning: rework mitigation in projects

Abstract: The Australian government has issued several calls to improve the performance of the construction industry. A lack of available benchmark metrics has made it difficult, if not impossible, for organizations to identify areas to target for process improvement. A significant factor that has been found to contribute to poor organizational and project performance is rework. Using the results of a questionnaire survey, the paper presents and discusses a series of benchmark metrics for the causes and costs of rework for 161 construction projects. A generic framework for benchmarking rework at the interfaces of a project’s life cycle is proposed, and unstructured interviews are used to subject the proposed framework to validation by industry practitioners.

Strategic Management: Consideration of Paradoxes, Processes, and Associated Concepts as Applied to Construction

Abstract: This paper reviews recent literature on the strategic management process and considers several paradoxes viewed from a construction perspective. Many of the key issues surrounding the strategic management process have been discussed, and recommendations have been provided as to how construction organizations should respond. The main paradoxes considered were logical (rational) versus creative (generative) strategies; intended (deliberate) versus realized (emergent) strategies; revolutionary versus transformational strategies; strategic fit versus strategic stretch; and strategy versus organizational effectiveness. Each of these paradoxes was found to have considerable relevance to construction, and examples of how they have been applied to construction have been provided. For many construction organizations the key to success depends upon developing strategies that have an optimal balance within these paradoxes. This optimal balance will vary from one organization to another.

Conflicts between Owner and Contractors: Proposed Intervention Process

Abstract: The parties of a construction contract, the owner and contractor, are a society with a complex set of interrelated relationships requiring cooperation and collaboration to coordinate time, resources, and communication. The main goal of the parties involved in a project’s construction is to have a successful project constructed in accordance with the plans and specifications, within the time and cost originally anticipated. The success of a project depends on a number of variables, not the least of which is how the organizations approach problems and conflicts. However, the adversarial atmosphere that infects the industry can prevent the parties from reaching their goal. This paper proposes an intervention process, a combination of partnership and mediation, to prevent and resolve dispute prior to contract close-out.

ISO 9000 and the U.S. Construction Industry

Abstract: ISO 9000, the series of quality management standards issued by the International Organization for Standardization, is being used by organizations involved in construction all over the world. The construction industry in the United States has generally lagged behind other industries and other countries in the acceptance and implementation of ISO 9000 standards. Differing opinions surround the issue of ISO 9000 in the U.S. construction industry; it has received either the support or the criticism of experts, who weigh the effects of ISO 9000 as a matter of real improvements in quality against competitiveness and specific requirements at a domestic and international level. This paper attempts to determine the applicability and effectiveness of ISO 9000 in U.S. construction firms and the barriers that hinder its acceptance. The methodology used consists of a literature review and a survey distributed to a sample of firms that have or have not received ISO 9000 certification. After analyzing the gathered data, it was concluded that ISO 9000 is an appropriate and effective tool for construction firms in the United States, although several obstacles affect its implementation and acceptance among construction organizations.

ISO 14000 and the construction industry: survey in China

Abstract: The rapid growth of the Chinese economy sparked off a great volume of construction activities, but the damage caused by construction activities to the environment is indisputable and has alerted some large Chinese construction firms to seek effective environmental management. The ISO 14000 series offers a framework for managing construction operations to improve environmental performance. To discover the conditions of implementation of ISO 14000 in the construction industry, a structured questionnaire survey was conducted whose results show that the major motivation for implementing the system was to seek entry to the international construction market. Other motivations include standardization of the environmental management procedures for internal operations, obtaining social recognition, gaining confidence from clients and a better corporate image, enhancing the environmental awareness of subcontractors, and cleaner sites as a result of better housekeeping. However, some obstacles remain along the path, such as the financial burden, poor rates of return for most firms, low environmental awareness, and inadequate legal enforcement. Based on the analysis and discussion, the paper concludes that the government should take the lead in encouraging training, providing financial support, and improving the legal framework to promote ISO 14000 for the Chinese construction industry.

Financial Viability of Fiber-Reinforced Polymer (FRP) Bridges

Abstract: The application of fiber-reinforced polymer ~FRP! technology to bridges can provide performance enhancements at a time when there is a large and growing need to replace aging bridges in the United States. However, construction costs are significantly higher than with traditional methods, and it is not clear if this technology can become competitive in the standard short-span bridge market. This study investigates current and future costs to determine how cost competitive this technology is likely to become, taking into account the expected improvements in manufacturing, transport, and installation, as well as life-cycle differences. Based on two demonstration FRP bridges and the learning curve approach, the results show that anticipated improvements would not be sufficient to compete on cost with reinforced-concrete bridges. Unless significant improvement also occurs in the cost of component material, this technology will not be cost competitive for the standard short-span bridge, and the application of FRP technology will be limited to other segments of the market, such as bridge deck construction and bridge repair.

Achieving Client Satisfaction for Engineering Consulting Firms

Abstract: Client satisfaction, as a very important total quality management philosophy, lately has been incorporated in the 2000 edition of the ISO 9000 quality management system. Senior construction professionals in Hong Kong were interviewed in a two-stage survey to identify a comprehensive list of factors (and their indicators) for measuring client satisfaction in the context of engineering consulting services. From the survey data, the clients’ level of satisfaction with those factors and the indicators were prioritized. The resulting list of priorities showed the collective opinion of 47 senior and experienced professionals working in the field on what services provided by consulting firms were the most or least satisfactory in Hong Kong. The data obtained from the 47 professionals were further employed to establish a client satisfaction function using multiple linear regression for deriving strategies for consultants to achieve client satisfaction. The approach of this research is useful to engineering consul...

Differentiation, Conformity, and Construction Firm Performance

Abstract: Competitive strategy and neo-institutional scholars offer different views for studying a firms relationship with its environment. Competitive strategy scholars propose that a firms environment host...

Strategic Perspective of Turkish Construction Companies

Abstract: Whether extensively planned or not, all companies have a strategic perspective which is analogous to the personality of an individual. However, a clear strategic perspective is a must to achieve strategic integration that further leads to competitive advantage. In order to define a strategic perspective, four determinants should be put together: objectives, strategies; competencies; and competitive rules. There are two way linkages among objectives, strategies, and competencies that are affected from competitive forces acting on the market and these interrelations change with respect to company characteristics like size, age, major client, etc. The objective of this paper is to propose a conceptual framework for the analysis of a strategic perspective and present results of a questionnaire carried out to explore the strategic perspectives of Turkish contractors. Objectives, strategies, and competencies of Turkish contractors are analyzed together with competitive rules prevailing in the Turkish construction industry. The determinants of strategic perspective can further be used as a guide for setting a strategic agenda for construction companies with different characteristics and operating in different submarkets.

Baseline Determination in Construction Labor Productivity-Loss Claims

Abstract: Various ways of quantifying damages have been applied to productivity loss claims in construction. All of the ways attempt to be as objective as possible based on the extent of information available in a particular case. The measured mile, a widely accepted method, is employed when an unimpacted baseline period of production can be identified. Although that approach is considered to be the most objective method available in such cases, the method is limited and does not directly account for variation in individual productivity values about a normal or natural level of productivity. A gap exists between the use of existing methods and the availability of an appropriate methodology that specifically addresses variation in productivity. The key lies in the way baseline productivity is measured, which is inherently statistical, yet no truly statistical methods are used to establish such a baseline. Using the measured mile as a backdrop, this article provides an objective, measurement-based approach that can b...

Project Management Actions to Improve Design Phase Cost Performance

Abstract: Over 270 engineering design projects are analyzed to assess the impact of the use of project management processes on design phase cost performance. Frequency of design team meetings and frequency of reporting of design phase progress were found to reduce design phase costs. Project manager training and the use of a project management based organizational structure were found not to create statistically significant lower design costs. Calculation of regression lines for the meeting and reporting frequency variables against design costs is shown to be a method to quantify the potential savings to be obtained by application of each process.

Lessons learned from rigid conflict resolution in an organization: Construction conflict case study

Abstract: Success in construction projects mainly depends on how well project managers handle conflicts. There are in general five conflict resolution approaches: withdrawal, compromise, forcing, smoothing, and problem solving. Conflict results are very relevant to the interaction of the approaches. Improperly managed, the interaction often generates psychological residue such as anger that ruins the project. The main objective of this research is, through a case study, to enhance the comprehension of the approaches, their interactions, and the psychological changeovers involved. Although conflict resolution among the contractual parties with privity has been studied widely, the conflicts among the parties either in an owner or in a contractor organization have been rarely researched, although they frequently cause destructive claims to the contractual parties. This research identifies a real construction conflict as the case study that occurred between two functional entities of a local Korean government. The case illustrates that a badly managed conflict in an owner organization causes undesirable claims between contractual parties. Based on the previous research regarding the five approaches and psychological transitions in a conflict resolution process, the case is analyzed to recognize the approaches and psychological changeovers absorbed. Useful lessons from the case are identified through a graduate class discussion.

Role of Workforce Management in Bridge Superstructure Labor Productivity

Abstract: There have been many studies on different aspects of the construction process in regard to how they each impact construction productivity. In reviewing the documentation of this research, very few ...

Forecasting Construction Staffing for Transportation Agencies

Abstract: When the volume of construction projects let to contract increases significantly, state departments of transportation must critically examine internal construction project management staffing capabilities and accurately forecast the manpower required to execute future projects. This paper describes the development of a model or process to forecast manpower requirements as a function of project type and cost for selected employee classifications. Using data from 130 recently completed highway construction projects and over 11,000 employee payroll entries, regression analysis plots were generated to predict overall manpower requirements for projects of a given type and cost. These overall requirements were then adjusted to predict manpower requirements for individual employee classifications using typical task allocation percentages obtained from questionnaire data. The output from the model serves as input into commercially available critical path method scheduling software to facilitate manpower planning and resource leveling.

Lean Management of Environmental Consulting

Abstract: Lean management has traditionally been adopted by manufacturing industries to improve operations through the identification and elimination of all forms of waste Encouraged by the successful integration of lean principles in service industries, this article provides an investigation into the applicability of lean management principles to improve business operations in an environmental consulting company An organized approach of applying the five fundamental concepts of lean management (specify value, identify the value stream, flow, pull, and perfection) is presented in a manner that environmental managers may use as a model to achieve specific operational goals Examples are presented to illustrate how lean concepts were applied at two environmental consulting firms

Workforce Demographics among Project Engineering Professionals—Crisis Ahead?

Abstract: The age and experience profile of project engineering professionals employed by both owners and contractors has recently become a concern due to downsizing, retirements, and lack of hiring during the 1990s. Data were gathered from U.S. Census panels and from 27 owner firms and 23 contractor firms within the Construction Industry Institute to investigate the extent of this issue. In particular, the study examined changes in industry staffing levels, projected industry staffing levels, the current age and experience profile of project engineering staffs, current and projected hiring practices, and retention levels. The results of the data analyses indicate that, while substantial downsizing occurred among project engineering professionals during the early 1990s, the era of downsizing appears to be at an end. However, the high proportion of engineering professionals nearing retirement suggests that the transfer of knowledge from more to less experienced employees is an area of critical importance for both owners and contractors. Data showing demographic breakdowns using these analyses will be given, conclusions drawn, and policy implications outlined.

Comparative evaluation of analytical and intuitive decision making

Abstract: This paper examines a technique for evaluating the differences in value among rank-ordered alternatives using both analytical and intuitive decision making. This technique was applied to the ranking of alternative disinfection methods for both a water and wastewater plant. The paper further provides a framework for analyzing and reconciling the differences between analytical and intuitive decision models. Neither exists in a strictly mathematical closed form, so it is important to investigate both to understand where the differences in alternative recommendations reside. A framework such as the one presented here is key to unlocking the subjectivity inherent in and the difficulty surrounding value structure articulation.

Strategic Characterization of Water System Infrastructure and Management

Abstract: The capital needs of America’s water systems have received substantial, recent attention within engineering and public policy circles. Various groups contend that national water systems face a multibillion dollar annual funding gap and advocate for a considerable federal role in supplying the necessary capital to fulfill anticipated requirements. Opposition groups contest these assertions, arguing that federal subsidies will reduce the incentive for the industry to develop lasting solutions. The industry’s path forward remains unsettled as this debate continues. Missing from these discussions, however, is objective evidence concerning the state of the industry. Accordingly, this paper presents a rational methodology to characterize community water systems to provide a basis for (1) understanding the state of systems within the national portfolio; and (2) guiding strategic assessment and policy development. Common indicators are deployed that rely upon widely available operating and financial data and make...

Role of the engineer in rural municipalities

Abstract: Due to the intrinsic characteristics of the profession and the diverse nature of the position, engineers employed by small rural municipalities may require talents different from those required of engineers employed by large organizations. However, from one municipal position to the next, the training, experience, and qualifications required are similar. The purpose of this paper is to provide an overview of the issues facing engineers in rural municipalities (cities and counties). This paper also highlights other aspects of these positions, including the qualifications, responsibilities, authority, and liability of the engineer in rural municipalities.