KSCE Journal of Civil Engineering

, Volume 21, Issue 3, pp 603–615 | Cite as

Quantifying combination effects of project management practices on cost performance

  • Sung Joon Suk
  • Seokho Chi
  • Stephen P. Mulva
  • Carlos H. Caldas
  • Sung-Hoon An
Construction Management
First Online:
Received:
Accepted:

Abstract

This paper presents an analysis method that quantifies the relationship between project management practices and the cost performance of construction projects. The analysis method includes a series of analysis procedures and methods: data measurement and transformation, contingency table analysis, logistic regression, and a composite index. Step-by-step analysis procedures and methods are described along with the data obtained from 143 owner projects to examine the effect of nineteen project management practices on cost performance. The analysis method uncovers the minimum implementation levels of project management practices for better cost performance, and quantifies the combined effects of project management practices on cost performance varied by their implementation levels. The analysis results generate specific and quantitative information used in implementing project management practices for better cost performance. This information will help practitioners achieve improved cost performance in the most effective and efficient way. The analysis method designed with a series of statistical methods makes it possible to produce useful quantitative information for the implementation of project management practices.

Keywords

quantitative analysis project management practices best practices implementation of project management practices project performance measurement 
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ahuja, V., Yang, J., and Shankar, R. (2010). “Benchmarking framework to measure extent of ICT adoption for building project management.” Journal of Construction Engineering and Management, Vol. 136, No. 5, pp. 538–545, DOI: 10.1061/(ASCE)CO.1943–7862.0000155.CrossRefGoogle Scholar
  2. Anderson, K. and McAdam, R. (2004). “A critique of benchmarking and performance measurement: lead or lag?.” Benchmarking: An International Journal, Vol. 11, No. 5, pp. 465–483, DOI: 10.1108/14635770410557708.CrossRefGoogle Scholar
  3. Anvuur, A. and Kumaraswamy, M. (2007). “Conceptual Model of Partnering and Alliancing.” Journal of Construction Engineering and Management, Vol. 133, No. 3, pp. 225–234. DOI: 10.1061/(ASCE)0733–9364(2007)133:3(225).CrossRefGoogle Scholar
  4. APM (2012). “APM Body of Knowledge 6th edition.” APM Publication. DOI: https://wwwapmorguk/BOK6.Google Scholar
  5. Aubry, M. and Hobbs, B. (2010). “A fresh look at the contribution of project management to organizational performance.” Project Management Journal, Vol. 42, No. 1, pp. 3–16. DOI: 10.1002/pmj.20213.CrossRefGoogle Scholar
  6. Bassioni, H. A., Price, A. D. F., and Hassan, T. M. (2005). “Building a conceptual framework for measuring business performance in construction: an empirical evaluation.” Construction Management and Economics, Vol. 23, No. 5, pp. 495–507, DOI: 10.1080/0144619042000301401.CrossRefGoogle Scholar
  7. Besner, C. and Hobbs, J. B. (2004). “An empirical investigation of project management attribute: In reality, which tools do practitioners use and value?.” Project Management Institute (PMI) Research Conference Proceedings. http://marketplacepmiorg/Pages/ProductDetailaspx? GMProduct=00100068401.Google Scholar
  8. Besner, C. and Hobbs, B. (2006). “The perceived value and potential contribution of project management practices to project success.” Project Management Journal, Vol. 37, No. 3, pp. 37–48, http://marketplacepmiorg/Pages/ProductDetailaspx?GMProduct=00100942600.Google Scholar
  9. Besner, C. and Hobbs, B. (2013). “Contextualized project management practice: a cluster analysis of practices and best practices.” Project Management Journal, Vol. 44, No. 1, pp. 17–34, DOI: 10.1002/ pmj.21291.CrossRefGoogle Scholar
  10. Carvalho, M., Patah, L., and Bido, D. (2015). “Project management and its effects on project success: Cross-country and cross-industry comparisons.” International Journal of Project Management, Vol. 33, No. 7, pp. 1509–1522, DOI: 10.1016/jijproman.2015.04.004.CrossRefGoogle Scholar
  11. Cha, H. and Kim, J. (2013). “Quantification model for applying construction management practices in consideration of project characteristic factors.” KICEM Journal of Construction Engineering and Project Management, DOII: 10.6106/JCEPM.2013.3.1.035, pp. 35–38, Online publication date: 1-Mar-2013.Google Scholar
  12. Chou, J. S. and Yang, J. G. (2012). “Project management knowledge and effects on construction project outcomes: an empirical study.” Project Management Journal, Vol. 43, No. 5, pp. 47–67, DOI: 10.1002/ pmj.21293.CrossRefGoogle Scholar
  13. Chou, J., Irawan, N., and Pham, A. (2013). “Project management knowledge of construction professionals: Cross-country study of effects on project success.” Journal of Construction Engineering and Management, Vol. 139, No. 11, DOI: 10.1061/(ASCE)CO.1943–7862.0000766, 04013015.Google Scholar
  14. CII (2003). “Benchmarking and metrics value of best practices report.” Benchmarking & Metrics 2003–4. https://wwwconstruction-institute. org/scriptcontent/more/bmm2003_4_morecfm.Google Scholar
  15. CII (2004). “Benchmarking & metrics implementation toolkit, Implementation Resource, Benchmarking & Metrics-2.” CII Publication. https://wwwconstruction-instituteorg/scriptcontent/more/ir-bmm_2_ morecfmGoogle Scholar
  16. CII (2010). “CII value of best practices report.” BMM 2010–4. https:// wwwconstruction-instituteorg/scriptcontent/more/bmm2010_4_more. cfm.Google Scholar
  17. CII (2012). “Benchmarking & metrics project level survey, Version 11, Large project questionnaire” CII Publication. https://wwwconstructioninstitute. org/nextgen/publications/pas/general/Large_Project_Version11_ Issued_092012pdf.Google Scholar
  18. CII (2014). https://wwwconstruction-instituteorg/. (August 18, 2014).Google Scholar
  19. Cooke-Davies, T. J. and Arzymanow, A. (2003). “The maturity of project management in different industries: An investigation into variations between project management models.” International Journal of Project Management, Vol. 21, No. 6, pp. 471–478, DOI: 10.1016/ S0263–7863(02)00084–4.CrossRefGoogle Scholar
  20. Costa, D. B., Formoso, C. T., Kagioglou, M., Alarcon, L. F., and Caldas, C. H. (2006). “Benchmarking initiatives in the construction industry: lessons learned and improvement opportunities.” Journal of Management in Engineering, Vol. 22, No. 4, pp. 158–167, DOI: 10.1061/(ASCE)0742–597X(2006)22:4(158).CrossRefGoogle Scholar
  21. Din, S., Abd-Hamid, Z., and Bryde, D. J. (2011). “ISO 9000 certification and construction project performance: the Malaysian experience.” International Journal of Project Management, Vol. 29, No. 8, pp. 1044–1056, DOI: 10.1016/jijproman.2010.11.001.CrossRefGoogle Scholar
  22. El-Mashaleh, M. S., Minchin Jr, R. E., and O’Briien, W. J. (2007). “Management of construction firm performance using benchmarking.” Journal of Management in Engineering, Vol. 23, No. 1, pp. 10–17, DOI: 10.1061/(ASCE)0742–597X(2007)23:1(10).CrossRefGoogle Scholar
  23. Everitt, B. S. (1992). “The analysis of contingency tables, 2nd ed.” Chapman and Hall/CRC Google Scholar
  24. Feng, Y., Teo, E., Ling, F., and Low, S. (2014). “Exploring the interactive effects of safety investments, safety culture and project hazard on safety performance: An empirical analysis.” International Journal of Project Management, Vol. 32, No. 6, pp. 932–943. DOI:10.1016/ jijproman.2013.10.016.CrossRefGoogle Scholar
  25. Fisher, D., Anderson, S., and Rahman, S. (2000). “Integrating constructability tools into constructability review process.” Journal of Construction Engineering and Management, Vol. 132, No. 4, pp. 89–96, DOI: 10.1061/(ASCE)0733–9364(2000)126:2(89).CrossRefGoogle Scholar
  26. Gibson, G., Jr., Wang, Y., Cho, C., and Pappas, M. (2006). “What is preproject planning, anyway?.” Journal of Management in Engineering, Vol. 22, No. 1, pp. 35–42, DOI: 10.1061/(ASCE)0742–597X(2006) 22:1(35).CrossRefGoogle Scholar
  27. Golini, R., Kalchschmidt, M., and Landoni, P. (2015). “Adoption of project management practices: The impact on international development projects of non-governmental organizations.” International Journal of Project Management, Vol. 33, No. 3, pp. 650–663, DOI: DOI: 10.1016/jijproman.2014.09.006.CrossRefGoogle Scholar
  28. Golob, K., Bastiè, M., and Pšunder, I. (2013). “Influence of project and marketing management on delays, penalties, and project quality in slovene organizations in the construction industry.” Journal of Management in Engineering, Vol. 29, No. 4, pp. 495–502, DOI: 10.1061/(ASCE)ME.1943–5479.0000146,495–502.CrossRefGoogle Scholar
  29. Hanna, A. S. and Brusoe, J. K. (1997). “Study of performance evaluations in electrical construction industry.” Journal of Management in Engineering, Vol. 13, No. 6, pp. 66–74, DOI: 10.1061/(ASCE)0742–597X(1997)13:6(66).CrossRefGoogle Scholar
  30. Hill, T. and Lewicki, P. (2005). “Statistics: Methods and applications.” StatSoft, Inc.Google Scholar
  31. Hinton, M., Francis, G., and Holloway, J. (2000). “Best practice benchmarking in the UK.” Benchmarking: An International Journal, Vol. 7, No. 1, pp. 52–61, DOI: 10.1108/14635770010314954.CrossRefGoogle Scholar
  32. Ibbs, C. W. and Kwak, Y. H. (2000). “Assessing project management maturity.” Project Management Journal, Vol. 31, No. 1, pp. 32–43, http://wwwpmiorg/learning/assessing-project-management-maturity-1988.Google Scholar
  33. IPMA (2006). “ICB -IPMA Competence Baseline.” Version 3.0. http:// wwwipmaworld/resources/ipma-publications/ipma-competencebaseline.Google Scholar
  34. Johnson, T., Feng, P., Sitzabee, W., and Jernigan, M. (2013). “Federal Acquisition Regulation Applied to Alliancing Contract Practices.” Journal of Construction Engineering and Management, Vol. 139, No. 5, pp. 480–487, DOI: 10.1061/(ASCE)CO.1943–7862.0000592,480–487.CrossRefGoogle Scholar
  35. Kagioglou, M., Cooper, R., and Aouad, G. (2001). “Performance management in construction: a conceptual framework.” Construction Management & Economics, Vol. 19, No. 1, pp. 85–95, DOI: 10.1080/01446190010003425.CrossRefGoogle Scholar
  36. Kang, Y., O’Brien, W., Dai, J., Mulva, S., Thomas, S., Chapman, R., and Butry, D. (2013). “Interaction effects of information technologies and best practices on construction project performance.” Journal of Construction Engineering and Management, Vol. 139, No. 4, pp. 361–371, DOI: 10.1061/(ASCE)CO.1943–7862.0000627.CrossRefGoogle Scholar
  37. Kaplan, R. S. and Norton, D. P. (1992). “The balanced scorecard: Measures that drive performance.” Harvard Business Review, Vol. 70, No. 1, pp. 70–79, DOI: 10.1225/92105.Google Scholar
  38. Lee, S. H., Thomas, S. R., Macken, C. L., Chapman, R. E., Tucker, R. L., and Kim, I. (2005). “Economic value of combined best attribute use.” Journal of Management in Engineering, Vol. 21, No. 3, pp. 118–124, DOI: 10.1061/(ASCE)0742–597X(2005)21:3(118).CrossRefGoogle Scholar
  39. Lee, S. H., Thomas, S. R., and Tucker, R. L. (2005). “Web-based benchmarking system for the construction industry.” Journal of Construction Engineering and Management, Vol. 131, No. 7, pp. 790–798, DOI: 10.1061/(ASCE)0733–9364(2005)131:7(790).CrossRefGoogle Scholar
  40. Lin, G. and Shen, Q. (2007). “Measuring the performance of value management studies in construction: Critical review.” Journal of Management in Engineering, Vol. 23, No. 1, pp. 2–9, DOI: 10.1061/(ASCE)0742–597X(2007)23:1(2).CrossRefGoogle Scholar
  41. Ling, F. Y., Low, S. P., Wang, S. Q., and Lim, H. H. (2009). “Key project management attributes affecting singaporean firms’ project performance in China.” International Journal of Project Management, Vol. 27, No. 1, pp. 59–71, DOI: 10.1016/jijproman.2007.10.004.CrossRefGoogle Scholar
  42. Liu, J., Love, P., Davis, P., Smith, J., and Regan, M. (2014). “Conceptual framework for the performance measurement of public-private partnerships.” Journal of Infrastructure Systems, DOI: 10.1061/(ASCE)IS.1943–555X.0000210,04014023.Google Scholar
  43. Luu, T., Kim, S., Cao, H., and Park, Y. (2008). “Performance measurement of construction firms in developing countries.” Construction Management and Economics, Vol. 26, No. 4, pp. 373–386, DOI: 10.1080/01446190801918706.CrossRefGoogle Scholar
  44. Meybodi, M. (2008). “Integrated benchmarking performance measure.” Advances in Competitiveness Research, Vol. 16, No. 1/2, pp. 62–73, http://wwweberlyiupedu/ASCWeb/journals_acrhtml.Google Scholar
  45. Milosevic, D. Z. (2003). “Project management toolbox: Tools and techniques for the practicing project manager.” John Wiley & Sons Inc.Google Scholar
  46. Mir, F. and Pinnington, A. (2014). “Exploring the value of project management: Linking Project Management Performance and Project Success.” International Journal of Project Management, Vol. 32, No. 2, pp. 202–217, DOI: 10.1016/jijproman.2013.05.012.CrossRefGoogle Scholar
  47. Meng, X. (2012). “The effect of relationship management on project performance in construction.” International Journal of Project Management, Vol. 30, No. 2, pp. 188–198. DOI: 10.1016/jijproman.2011.04.002.CrossRefGoogle Scholar
  48. Nassar, N. and AbouRizk, S. (2014). “Practical application for integrated performance measurement of construction projects.” Journal of Management in Engineering, Vol. 30, No. 6, DOI: 10.1061/(ASCE)ME.1943–5479.0000287,04014027.Google Scholar
  49. O’Connor, J., O’Brien, W., and Ouk Choi, J. (2015). “Industrial project execution planning: Modularization versus stick-built.” Practice Periodical on Structural Design and Construction, Vol. 21, No. 1, DOI: 10.1061/(ASCE)SC.1943–5576.0000270,04015014.Google Scholar
  50. Patanakul, P., Iewwongcharoen, B., and Milosevic, D. (2010). “An empirical study on the use of project management tools and techniques across project life-cycle and their impact on project success.” Journal of General Management, Vol. 35, No. 3, pp. 41–65, http://wwwbraybrookecouk/tabid/99/Defaultaspx?articleId=190.Google Scholar
  51. Pocock, J., Kuennen, S., Gambatese, J., and Rauschkolb, J. (2006). “Constructability state of practice report.” Journal of Construction Engineering and Management, Vol. 132, No. 4, pp. 373–383, DOI: 10.1061/(ASCE)0733–9364(2006)132:4(373).CrossRefGoogle Scholar
  52. Ramirez, R. R., Alarcon, L. F., and Knights, P. (2004). “Benchmarking system for evaluating management attributes in the construction industry.” Journal of Management in Engineering, Vol. 20, No. 3, pp. 110–117, DOI: 10.1061/(ASCE)0742–597X(2004)20:3(110).CrossRefGoogle Scholar
  53. Ranyer, J. W. and Best, D. J. (2000). “A contingency table approach to nonparametric testing.” Chapman and Hall/CRC.CrossRefGoogle Scholar
  54. Raz, T. and Michael, E. (2001). “Use and benefits of tools for project risk management.” International Journal of Project Management, Vol. 19, No. 1, pp. 9–17, DOI: 10.1016/S0263–7863(99)00036–8.CrossRefGoogle Scholar
  55. Reich, B. H., Gemino, A., and Sauer, C. (2014). “How knowledge management impacts performance in projects: An empirical study.” International Journal of Project Management, Vol. 32, No. 2, pp. 590–602, DOI: 10.1016/jijproman.2013.09.004.CrossRefGoogle Scholar
  56. Ritson, G., Johansen, E., and Osborne, A. (2012). “Successful programs wanted: Exploring the impact of alignment.” Project Management Journal, Vol. 43, No. 1, pp. 21–36. DOI: 10.1002/pmj.20273.CrossRefGoogle Scholar
  57. Rudas, T. (1997). “Odds ratios in the analysis of contingency tables.” Sage Publications, Inc.Google Scholar
  58. Suk, S. (2012). “Analysis of project management attributes for the successful delivery of capital facility projects.” Ph.D. Dissertation, The University of Texas at Austin, http://hdlhandlenet/2152/19465.Google Scholar
  59. Suk, S., Hwang, B., Dai, J., Caldas, C., and Mulva, S. (2012). “Performance dashboard for a pharmaceutical project benchmarking program.” Journal of Construction Engineering and Management, Vol. 138, No. 7, pp. 864–876, DOI: 10.1061/(ASCE)CO.1943–7862.0000503.CrossRefGoogle Scholar
  60. Thamhain, H. J. (1999). “Emerging project management techniques: a managerial assessment.” Portland International Conference on Management of Engineering and Technology, Vol. 2, pp. 363–368. DOI: 10.1109/PICMET.1999.787828.CrossRefGoogle Scholar
  61. Thomas, J. and Mullaly, M. (2007). “Understanding the value of project management: first steps on an international investigation in search of value.” Project Management Journal, Vol. 38, No. 3, pp. 74–89, DOI: 10.1002/pmj.20007.CrossRefGoogle Scholar
  62. Welch, S. and Mann, R. (2001). “The development of a benchmarking and performance improvement resource.” Benchmarking: An International Journal, Vol. 8, No. 5, pp. 431–452, DOI: 10.1108/EUM0000000006387.CrossRefGoogle Scholar
  63. White, D. and Fortune, J. (2002). “Current attribute in project management -an empirical study.” International Journal of Project Management, Vol. 20, No. 1, pp. 1–11, DOI: 10.1016/S0263–7863(00)00029–6.CrossRefGoogle Scholar
  64. Yang, L., Chen, J., and Wang, X. (2015). “Assessing the effect of requirement definition and management on performance outcomes: Role of interpersonal conflict, product advantage and project type.” International Journal of Project Management, Vol. 33, No. 1, pp. 67–80, DOI: 10.1016//jijproman.2014.02.012.CrossRefGoogle Scholar
  65. Yang, L. R., O’Connor, J. T., and Wang, C. C. (2006). “Technology utilization on different sizes of projects and associated impacts on composite project success.” International Journal of Project Management, Vol. 24, No. 2, pp. 96–105, DOI: 10.1016/jijproman.2005.06.008.CrossRefGoogle Scholar
  66. Yasin, M. M., Czuchry, A. J., and Alavi, J. (2002). “Project management attributes: Then and now.” Thunderbird International Business Review, Vol. 44, No. 2, pp. 253–262, DOI: 10.1002/tie.10013.CrossRefGoogle Scholar
  67. Yitmen, I. (2013). “Organizational cultural intelligence: A competitive capability for strategic alliances in the international construction industry.” Project Management Journal, Vol. 44, No. 4, pp. 5–25, DOI: 10.1002/pmj.21356.CrossRefGoogle Scholar
  68. Yu, I., Kim, K., Jung, Y., and Chin, S. (2007). “Comparable performance measurement system for construction companies.” Journal of Management in Engineering, Vol. 23, No. 3, pp. 131–139, DOI: 10.1061/(ASCE)0742–597X(2007)23:3(131).CrossRefGoogle Scholar
  69. Zwikael, O. (2009). “The relative importance of the PMBOK® Guide’s nine knowledge areas during project planning.” Project Management Journal, Vol. 40, No. 4, pp. 94–103, DOI: 10.1002/pmj.20116.CrossRefGoogle Scholar

Copyright information

© Korean Society of Civil Engineers and Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  • Sung Joon Suk
    • 1
  • Seokho Chi
    • 2
    • 3
  • Stephen P. Mulva
    • 4
  • Carlos H. Caldas
    • 5
  • Sung-Hoon An
    • 6
  1. 1.Dept. of Construction ManagementWestern Carolina UniversityCullowheeUSA
  2. 2.Dept. of Civil and Environmental EngineeringSeoul National UniversitySeoulKorea
  3. 3.the Institute of Construction and Environmental Engineering (ICEE)Seoul National UniversitySeoulKorea
  4. 4.Construction Industry Institute, Benchmarking & MetricsThe Univ. of Texas at AustinAustinUSA
  5. 5.Dept. of Civil, Architectural and Environmental EngineeringThe University of Texas at AustinAustinUSA
  6. 6.Department of Architectural EngineeringDaegu UniversityGyeongsanKorea

Personalised recommendations