Ineffective project scheduling and time control in sun viet jsc

By making interview, literature review and analyzing the data in 2017, ineffective time control system was found that the central problem caused to the time overrun project.. - By summa

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

NGUYEN ANH KHOA

INEFFECTIVE PROJECT SCHEDULING AND TIME CONTROL

IN SUN VIET JSC

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2018

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

NGUYEN ANH KHOA

INEFFECTIVE PROJECT SCHEDULING AND TIME CONTROL

IN SUN VIET JSC

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr NGUYEN PHONG NGUYEN

Ho Chi Minh City – Year 2018

CONTENTS

1 Problem identification 6

1.1 Company background 6

1.2 Symptom and evidence 7

1.3 Qualitative research 9

1.4 Initial causes-effect map 10

1.5 Updated causes-effect map 14

1.6 Potential central problem 17

2 Problem justification 19

2.1 Problem definition 19

2.2 Problem existence 21

2.3 Problem consequences 22

3 Causes validation 24

3.1 List of real causes 24

3.2 Final causes-effect map 27

3.3 Causes evaluation 28

4 Alternative solution 29

5 Action plan 33

6 Supporting information 37

6.1 Interview guide (first interview) 37

6.2 Summary of finding from qualitative research (first interview) 38

6.3 Group of causes and variable base on result of interview (first interview) 47

6.4 Analysis the number of time overrun projects in 2017 by factors 48

6.5 Result of SVTECH’s control system measurement 48

6.6 Transcript of problem discussion (third interview) 50

6.7 Result of causes evaluation 53

REFERENCES 55

List of figures

Figure 1 Initial Causes-effect map (source: in-depth interview) 10

Figure 2 Updated causes-effect map (source: in-depth interview and the above literatures) 14

Figure 3 Finial causes-effect map (source: in-depth interview and the above literatures) 27

List of table Table 1 KPI of Company in 2017 (source: SVTECH’s data) 7

Table 2 Relationship between factors and variables in causes-effect maps (interview and above literatures) 15

Table 3 Result of adding interview (source: second interview) 16

Table 4 Y (time) of project in 2017 (source: SVTECH’s data) 21

Table 5 Y (time) in three year 2015-2017 (source: SVTECH’s data) 22

Table 6 Percentage of over time cost to revenue in 2015-2017 (source: SVTECH’s data) 24

Table 7 Group of causes (source: literature review) 25

Table 8 Summarizing of causes evaluation 28

Table 9 Summary of finding in first in-depth interview (source: first in-depth interview) 39

Table 10 Group of causes and variable (source: first in-depth interview) 47

Table 11 Number of time overrun project summarized by main factors (source: SVTECH’s data) 48

Table 12 Time in plan and actual time to finish project in 2017 (source: SVTECH’s data) 48

EXECUTIVE SUMMARY

SVTECH had problem in deploying project in 2017 The proportion of time overrun projects and number of delayed day rose significantly They leaded to complaints from customers, probability to face with liquidated damages penalty and increase cost because of overtime cost More seriously, SVTECH could be lost customers for competitors if the time overrun project do not be solved By making interview, literature review and analyzing the data in 2017, ineffective time control system was found that the central problem caused to the time overrun project In order to solve this problem, deeper interview and study research was done The result of research and interview defined 7 causes of ineffective time control system, which are classified in 3 groups These causes has been validated and evaluated to define the level of important to company Based on these causes, alternative solution has been suggested and discussed

to find the suitable one for SVTECH To make clear for the solution, an action plan was made This action plan is expected to help SVTECH improve the time control system and decrease the percentage of time overrun projects and number of delayed day

1 Problem identification

1.1 Company background

- Sun Viet Technology Development JSC (SVTECH) was established in 2001 as

a distributor of Sun Microsystems, which is one of the biggest technological equipment producers on the world After 17 years of growth, from 17 employees

in 2001 to nearly 200 employees currently, SVTECH has now been acknowledge

as one the three leading System Integration companies with large scale and complex projects at both national and regional level

- There are some significant milestone in 17 years of growth of SVTECH:

+ In 2001, Head office in Ho Chi Minh City was established

+ In 2004, be selected as Sun Chanel partner and Hanoi representative office was opened

+ In 2006, become partner of Oracle and Celltick

+ In 2008, Switched to SV technologies JSC and be selected as partner of Juniper and IBM In this year, SVTECH also get Honorable Achievement Award for the best storage server provider in South Asia by Sun Micro system,

+ In 2010, become partner of Hitachi Data System (HDS)

+ In 2012, launched new business categories in Telecom Services and Integration (TSI) and Managed Service Provider (MSP) SVTECH also become partner of Symamtec in 2012

+ System Integrator, included network infrastructure, security, data, business analytics, digital enterprise solution…

+ Information and Communication Technologies (ICT), include television, IP networking, managed services…

+ Cloud computing solution

+ Besides, to prepare for 4.0 revolution, SVTECH also provides advanced technologies such as Internet of Thing (IoT) solution, Virtualization, Geographic information system (GIS) solution

- SVTECH provide services and solution to local and abroad organizations SVTECH customer was divide in to 6 main group:

+ Telecom corporations include: Mobifone, Vinaphone- VNPT, Viettel

+ Government organizations such as Ministry of Finance, Ministry of information technology, EVN, Sawaco, etc

+ Financial and Stock Institution was representative by OCB, MB, ACB, BIDV, Vietinbank, Sacombank, Prudential, Viet Capital, FE Credit, ect

+ Oil and Gas Company include PV oil, PVEP, PV trans Vietso Petro, Petronas, etc

+ Education and health organizations such as Can Tho University, RMIT, National University, Binh Dan Hospita, University of Medicine and Pharmacy Hospital, ect

+ Enterprises such as Vinamilk, Vingroup, HTV, SCTV, Big C, Mega Market, etc

1.2 Symptom and evidence

- SVTECH built KPI base on Balance Score Card, which includes 4 main categories: Financial, Customer, Process and Learning and growth, to control the performance of company In 2017, there were 4 KPIs was not achieved objective They are presented in the below table:

Table 1 KPI of Company in 2017 (source: SVTECH’s data)

KPI Department Target Result Evaluating

Percentage of projects completed on

time

Project management >80% 75% Not achieved

Percentage of contracts delivered on

time

Logistic- Purchase >80% 72% Not achieved Percentage of human response HR 100% 83% Not achieved

Percentage of human responded on

- The KPIs was responsible by HR department was not achieved because of leave maternity in recruitment team She came back in March 2018 so the problem has been solved

- Two others unachieved KPIs has relationship and they involve to schedule project control The result of KPIs show that project schedule was not controlled well, which was effected by late delivery For instance, project of X company (company name has been changed because of SVTECH’s confidential rules) in March 2018 was postponed for 10 days because of late delivery X is a fastidious customer, who always strict on time of project They always set some penalties

in contract to force suppliers comply with time In order to finish project on time and avoid punishing from X, engineers in technical department had to work overtime This project has finished on time but cost increased significantly

- Another case, Y company make an order of storage equipment to replace old system They have built a plan to postpone working at all branches for system changing but their products was late delivery so they have to cancel plan and set

a new plan They had poor complain about SVTECH’s service because it make their waste a lot of time They are considering about finding new suppliers instead of SVTECH for next projects

- These are only 2 typical cases of 27 time overrun projects and late delivery orders

in 2018 They lead to cost of project in rise significantly in compare with budget The amount of cost increase came from paying overtime bonus for engineers, punishing from contract The time overrun projects and late delivery orders also dissatisfy customer and destroy future opportunity Therefore, the time overrun project and late delivery should be analyzed and prevented This paper will focus

on finding the potential problem and root causes which lead to these consequences and offer an alternative solution and action plan to reduce the proportion of time overrun projects to total projects

1.3 Qualitative research

- Initially, in order to define the potential problem which lead to the late delivery and time overrun project, a qualitative research has been conducted In-depth interview is used to collect depth information about causes of time overrun project and late delivery from the involve people and the interview was taken place in meeting room to ensure the private environment Because one to one interview method will help respondents felt comfortable and easy to provide accuracy information

- Logistic- Purchase department is main responsibility for this KPIs so Logistic- Purchase Manager was interviewed initially Besides, Project Management Department is responsible for connecting other departments and Sales Department is responsible to contact with customers, so Project Management and Sales Managers is also need to be interviewed The in-depth interview was only taken place with managers because they had enough information about their employees and they could provide the most fulfill and reliable information Besides, time of research is not enough to interview more people, so this paper consider information from managers is representative for their departments

- In order to get useful information, an interview guide which provide key questions to interview has been prepared (see section 6.1) and the interview has been employed base on this guide The result of interview was transcript in section 6.2 and summarized by group of causes and variables in section 6.3

- After summarizing the interview result, five potential problems, which caused to time overrun project, has been identified They were indicated by follow initial causes- effect map (Figure 1)

1.4 Initial causes-effect map

Figure 1 Initial Causes-effect map (source: in-depth interview)

- By summary the interview of Logistic-Purchase manager and Project Management and Sales manager, there are four main groups of causes lead to time overrun project:

+ Late product delivery

+ Sale require urgent time which lower than standardization of response time + Incident in project

+ Customer delay project

- Firstly, late product delivery is direct causes lead to time overrun project because engineer could not work without products and equipment More specifically, late product delivery was caused by three issues:

+ Logistic-Purchase is overload working, they required to recruit new employee

to reduce workload but HR department could not find suitable candidate on time because requirements of candidate is high However, new employee has been recruited when the research took place and late product delivery has not been solved Therefore, it was not the main problem

+ Sometimes, projects provide new technologies required new products, which has not been imported before Therefore, it took time to prepare product certificates Requirement of new products could not predicted so Logistic-Purchase department cannot require a backup time, so it lead to late product delivery However, this case was rarely happen and it did not cause to time overrun project because customers always understand for these cases

+ Finally, late product delivery happened recently because of complicated orders Deploying project need an enormous number of products and equipment, and they was usually provided by many different suppliers from many different areas

on the world Therefore, Logistic-Purchase department could receive hundreds

of order for one project Additionally, these orders was separate by different time and different contract While doing A huge number of paper work and too much steps to complete, Logistic-Purchase department also make many report and updated schedule of product importing to sale every days so their work was interrupted lead to low productivity This problem is defined as main problem with cause to late product delivery and lead to time overrun project

- Secondly, incident in project such as products and system are incompatible, error

in system or software, etc is also causes of time overrun project Incident usually happen with project provide new technologies, and this case was always understand by customers However, incidents also caused by delivering wrong products which was usually lead to time overrun project and was usually complain from customers There are some causes lead to delivering wrong product: Sales misunderstood customer’s requirement, which caused by Sales have not understood products Besides, project provide new technologies usually use new products also a challenge for sales and Purchase- Logistic department and import wrong product also happen sometimes Finally, complicated document and workflow also lead to delivery wrong product because there are too much document have to check but there was not effective tool to support

- Thirdly, urgent time requirement from Sales department was one of causes lead

to time overrun project Sales usually send requirement in urgent case to engineer and Logistic-Purchase department to satisfy customer Deadline to complete project is to urgent so Technology department could not arrange enough engineer and Logistic-Purchase department also could not import product on time There are standardizations about response time for purchasing and supporting from engineer, but sometimes, Sales tried to persuade Technology department and Logistic-Purchase department to admit their requirements because they are pressure by KPIs of revenue so they have to accept urgent requirement from customers Another reason is urgent requirement come from large and important customers, if companies do not accept their requirements, companies will lose them and future profit On the other hand, some sale senior could negotiate with customer about schedule very well but it’s harder for inexperience sales Therefore, some Sales whose weak negotiating skill is the main problem cause

to urgent time requirement and lead to late product delivery and time overrun project

- Finally, time overrun project is also caused by schedule changing from customer, which come from customer’s internal problem so they did not complete infrastructure and delay project start day or they did not pay deposit on time, was

could not controlled and it also did not cause to drawback to company Therefore, research will not focus on this causes

- By analyzing information from interview and discussion with respondents, there are four potential problems lead to time overrun project:

+ Complicated document and workflow

+ Sales had weak negotiating skill

+ Project provide new technologies

+ Customer delay project

1.5 Updated causes-effect map

Figure 2 Updated causes-effect map (source: in-depth interview and the above literatures)

- There is almost none study about delay in technology deploying project, but there are huge number of studies about causes of delay in construction industry On the other hand, the process of deploying technology project and construction project is similar, which include three stages: planning or design, implementing

or building and management (1) and SVTECH’s project also involve to infrastructure construction Therefore, the literature about delay in construction project could be referenced for delay in technology projects to solve SVTECH’s problem involve to time overrun projects

- There are many causes lead to time overrun project and they are different between industries and countries (2), (3), (4) In Ghana, five critical factors lead

to time overrun construction project are: delay in government approvals/permits, delay in preparation and approval in variation orders, client induced additional work beyond the original scope, changed engineering conditions from the contract document and decreased labor productivity due to extreme climatic conditions (5) While, in Malaysia, main causes of time overrun project defined was: from contractors; the contractor delay, causes from client, bad consultant, and environment effects (3) Renuka et al (2) has studied and summarized the factors of delay project and dived them into 10 categories: manpower related, material related, scheduling & control related, environment related, change order, client related, consultant related, contract related, financial related, external factors These factors will be discussed in problem definition section

- In above factors, manpower, material, scheduling and control, client related factors was appeared in initial causes-effect maps They are illustrated by variables:

Table 2 Relationship between factors and variables in causes-effect maps (interview and above literatures)

scheduling and control complicated documented and workflow

- An adding interview has been performed with Logistic-Purchase manager and Sale and Project Management manager to define if these factors were existence

in SVTECH or not Two managers was asked two questions for each factors environment, consultant, contract, financial and external related:

+ Did SVTECH’s project delay because of X factor?

+ If X factors has caused to time overrun project, how frequently did it happen?

- The result of interview is summarized in below table:

Table 3 Result of adding interview (source: second interview)

- Have not happened

- SVTECH’s project not be effected by environment

- Have not happened

- Area where deployed technology is not effected by environment condition

- Have not happened - Rarely happened

- Did not happened in 2017 financial

variable was added to causes-effect maps is change law Law change required company to register certificate for new some kind of imported products so it lead

to time of preparing product certificate longer and cause to late product delivery

- Besides, ineffective scheduling and control project variable also adding to make clear the reason of late delivery which caused by complicated document and workflow and lead to time overrun project (1), (6), (7)

- On the other hand, Chitongo (8) found that client project time schedule control could cause to time overrun project because client require meeting and report lead to low productivity of project This point was proved by contract with X company which is one of SVTECH’s fastidious customers, who always strict on time of project and always set some penalties in contract to force suppliers comply with time Therefore, “to many report” variable is added to causes-effect maps which lead to complicated document and workflow

- Totally, there was 3 variables was added to updated causes-effect maps They was based on literature and has been confirmed by two managers are:

+ Change law

+ Ineffective scheduling and control

+ Client project time schedule control

1.6 Potential central problem

- After updating causes-effect maps with literature and reconfirmed by 2 managers, there are 3 new variables is added, but only change law and ineffective scheduling and control are potential problems Besides, complicated document and workflow was adjust to be causes Therefore, there are total 5 potential problems which lead to time overrun project was defined:

+ Ineffective scheduling and control

+ Sales had weak negotiating skill

+ Project provide new technologies

+ Customer delay project

+ Change law

- As discussion in the phase of creating initial causes-effect maps, project delay

by customer requirement do not lead to lost for company because they accept for

delay project On the other hands, SVTECH cannot control customer’s internal activities, if SVTECH try to push customer to complete project on schedule, SVTECH may be lost customer Therefore, it is infeasible and unnecessary to control this causes

- Base on second data about time overrun project in 2017 (see data at section 6.4), project provide new technologies and change law are rarely happen There are only 3 projects which was delayed because of incident when deploying new technology project and there is only 1 project was delayed because of change law

in the present of 3 years) Besides, these two factors are both external factors which could not to control so SVTECH have built a risk management plan to reduce lost in case of change law or provide new technology For example, when providing new technology, sales have to ask engineer for time of project before negotiating with customer Moreover, engineer have to list risks may be happened when providing new technology and create at least 2 contingency plans In processing phase of project, QA Department will monitors the cost, resource and schedule and remind project members about deadline On the other hands, SVTECH added change law to contract as a force majeure clause from incident of late delivery causes by change law in July 2018 Provide new technologies and change law are being controlled, the effectiveness of the controlled method will be considered at the end of December 2018 before creating new plan to control Therefore, this paper will not focus on these two problems

- The lack of skill of Sales team has been recognize in the 2017 Year-end review meeting and a training plan has been build The training plan is not only focus

on Sale team but expand to all members in company to improve the employee’s skills and build up company’s competence from human resource This causes are being correcting so this paper will not focus on it

- In the interview with Purchase-Logistic manger and Sale and Project Management manager, both two managers claimed that late delivery is the main causes of time overrun project and complicated document and workflow is potential problem which lead to late delivery (see section 6.2 Summary of

finding in first in-depth interview) Truly, about 67% of time overrun projects in

2017 cause by complicated document and workflow (see section 6.4) Currently, there is not any effective solution to solving this problem Purchase-Logistic, Sale and Project Management Department have suggested to eliminate some reports and delete some step in their working process However, shortening the working process make Board of Directors hard to monitor and control result of work and create more risk for organization because workflow are not record to review and evaluate By these disadvantage, the suggestion was not approved, so the report and work flow is not changed By referring from (2) (3) (4), complicated document and workflow is result of ineffective scheduling and control Time, cost, and quality is correlated, an effective scheduling and control will control these factors to ensure achieved project’s objective Therefore, if SVTECH can improve the effectiveness of project scheduling and control method, they can reduce not only number of time overrun project but also reduce cost while ensure quality of project Consequences, this paper will focus on finding the solution to increase the effectiveness of scheduling and control method at SVTECH

2 Problem justification

2.1 Problem definition

- Scheduling and control, which also be called time control system, is one of three perspective of control system Control system is responsible for project management team, they have to monitor process, measure project‘s cost, time and quality frequently, then report, evaluate actual and planed cost/time (9) and apply corrective actions to ensure the project complete on time, achieve the budget and quality requirement (10)

- The effectiveness of control system is based on difference between actual and plan because the accuracy of planning effect to result of project (10) The control system is used to measure cost, time and quality, so in order to evaluate the effectiveness of control system, different between actual and plan of cost, time and quality should be measured (9) There is a formula which is used widely to calculate the effectiveness of control system (1), (2), (6), (9):

of control system, it depend on characteristic of industry and area

- Above formula is used to evaluate the effectiveness of control system of each project In order to evaluate the effectiveness of control system of a company in

a period, average of Y value and the standard deviation of Y in a period should

be calculated and compared to organization’s standardization (10), (11)

- There is not any statistical data about acceptance or average of Y value in technology industry in Vietnam However, by implementing risk management system, SVTECH has estimated and set the standardization of Y (time) is 5% and standardization of Y (cost) is 3% It is hard to measure the level of quality in technology project, so SVTECH do not set the standardization for Y (quality), the quality of project will be evaluate base on customer’s requirement This paper only focus on measuring the effectiveness of time control system because the main objective of this paper is solve the time overrun project in SVTECH, cost and quality control system is out of this paper scope Besides, it’s hard to collect data and evaluate the effectiveness of cost and quality control system because data about project cost is confidential information which only Financial Department and Board of Directors have permission to access, while measuring

quality control system need technical basement knowledge and take time to build and test measurement method Because above limited permission and resource, this paper will only focus on time control system

2.2 Problem existence

- In order to evaluate the effectiveness of time control system of SVTECH, data about planning time and actual time to finish project has been collected from Project Management Department (section 6.5) These project’s Y (time) has been analyzed and indicated in follow table

Table 4 Y (time) of project in 2017 (source: SVTECH’s data)

Y (time) Number of projects Accumulation Percentage

- On the other hand, the average of Y (time) is 3.6%, which is 0.6% higher than company’s standardization Besides, the standard deviation of Y (time) is 8.38%, which is twofold the average of Y (time) This number reveals that the control system is not stable caused by the ability to control time is weak and cannot control project time

- Table 5 illustrates Y (time) of project at SVTECH in the period of 3 years from

2015 to 2017 Below table indicates the trend of increase of Y (time) every year,

but it rose slightly from 1.9% in 2015 to 2.1% in 2016 and they are below the standardization of Y (time) In 2017, the value of Y (time) increased significantly

to 3.6%, which is 0.8% higher than 2016

Table 5 Y (time) in three year 2015-2017 (source: SVTECH’s data)

Actual Average of

- Data in the period of 2015-2017 in table 5 also demonstrates that total number of delayed days also rose annually It increased nearly 20% from 103 days in 2015

to 121 days in 2016 then rocketed to 466 days in 2017 The number of delays days in 2017 is approximately fourfold in 2016 and over double the total number

of delayed days in 2 year 2015 and 2016.These number reveals that company’s control system are ineffective in time control

- After collecting data from project management team, an interview with project management manager was deployed to confirm about the existence of problem The interview was only deployed with project management manager because the problem is project control system, which involve directly to project management team, so other team or department will not have trustable information Besides, time of research is limited and project management manager will have enough information from other team members so he was chosen to be interviewed The content of interview transcript was showed in section 6.6

- In third interview, project management manager agreed that control system is ineffective working and they lead to time overrun project His team has been cut down bonus last year because KPIs was not achieved Therefore, project control system is confirmed that is working effectively and should be controlled

2.3 Problem consequences

- Infective project control system lead to time overrun project and force company

to liquidated damages penalty from customer (8) When liquidated damages

penalty happen, project cost was increase because of amount of money will spend for penalty Besides cost, company also lose the trust of customer, which make customer make more rule to boost the time such as requirement of more report, meeting (8) In more serious case, customer will cancel the business relationship with company and choose another partner (10) This is huge lost for any company when they lose customer for competitors

- On the other perspective, project control system is responsible for connecting departments in company (8), (10), (11), so if project control system work ineffectively, information communicating in company will be effected As the result, the internal conflict also happened because unclear information and responsibly (10) As consequences, company resource such as human resource and finance is wasted or use inefficiently

- Summarizing, there are 4 main consequences of ineffective project control system is defined through above studies:

+ Financial affect: increase cost and lose profit

+ Development affect: decrease customer’s satisfaction or lose customer

+ Company culture affect: create conflict between departments

+ Operating affect: waste resource or use resource inefficiently

- In above four consequences, financial and development affect are occurred and proved in section 1.2 and first interview In contract with customer X, there wasn’t any liquidated damages penalty was happen but the cost of project increase 10% because of paying for overtime working This was also one of ten biggest projects in 2017, so the profit of company was decrease sharply in comparison to planning On the other case, customer Y’s complain is proved for above second consequence They also intent to find new partner if we are overtime in next project which deployed in 2018 There are also other customer’s complain and increase of project cost for 29 time overrun project, X and Y customers was 2 typical case because they are two of company’s strategy customers

- The conflict between departments has not been happened at SVTECH but ineffective time control system leaded to waste resource and use resource

inefficiently The evidence was the increase of over time cost in below table The percentage rose 1% from 1.5% to 2.5% in 2017 The reason caused by ineffective time control system, engineer had to work over time to catch the deadline while they were free on previous days

Table 6 Percentage of overtime cost to revenue in 2015-2017 (source: SVTECH’s data)

3 Causes validation

3.1 List of real causes

- Time control system is critical factor effect to life cycle of the project (2), so it

is key factor to achieve project objectives (12) In order to evaluate the effectiveness of time control system, two aspects should be considered are the capability for assigning personnel and the deviation occurs in projects scope (2)

If firm is not willing to pay for highly skilled staff, project could be delay because

of following reason (2): lack of management personnel, lack of training personnel, improper estimating skills On the other hands, change of project scope effect to Scheduling and control through following factors (2): change orders and reworks, lack of conceptual stage, management support to model, operation, monitoring of projects, change of contractors and subcontractors, preparation of scheduling networks, revisions by client

- In another study, (7) researched about the factor effect to delay of project and they defined that ineffective scheduling and control, which is one of the most important factor effect on time plan of project, is caused by 4 reason: lacking experience of project management team, lacking detail of plan, don’t updating plan frequently, change requirement of clients

- On the other perspective, (8) considered the effect of project management team behavior on the project control system Because project management team is center department, who communicate to connect related departments and customer, so their behavior and communication will lead to result of project

Focus on information communication, (10) suggest that inefficient information record and analysis lead to lack of or delay access to information about project progress and this is main reason for ineffective control system

- (9) summarized the causes lead to ineffective control system are knowledge, skill and experience of project management team, statistical measurement method, risk identify ability Another factor was added by (12): poor communication, lack

of effective leadership and project team behaviors

- Summarizing from above studies, there are three groups of causes lead to ineffective time control system was listed in below table:

Table 7 Group of causes (source: literature review)

Group of causes Detail of causes

1.3 Lack of experience to solve the changing in project and incurred problems

1.4 Weakness at risk identify and control

2 Project document 2.1 Not define clearly project scope, responsibility of

project members

2.2 Not accuracy and detail time plan 2.3 Don’t record project progress and update project plan frequently

3 Inefficient control

method

3.1 Ineffective information measurement and analysis

3.2 Ineffective information communication

- In order to define which above causes impact on time control system at SVTECH, the interview was deployed with project management manager (see transcripts at section 6.6) The causes he recognized involve to lack of control system knowledge, weak skill to negotiate with customer and control time of suppliers and ineffective information communication From interview’s clue, he

confirm about weakness at risk identify and control of project management team, not clearly project scope, responsibility of project members and not accuracy and detail time plan, and ineffective information measurement and analysis

- Finally, there are 7 causes lead to ineffective time control system at SVTECH, which is classified in 3 groups below:

+ Causes in qualification of project management team:

 Lack of control system knowledge

 Weak skill to negotiate with customer and control time of suppliers

 Weak ability to identify and control risk of project

+ Causes in project document record:

 Define project scope and responsibility of project member is not clear

 Estimate the time line is not accuracy and detail

+ Causes in control method:

 Ineffective information measurement and analysis

 Ineffective information communication

- Base on problem consequences in section 2.3 and above real causes, final effect map was created in next section

causes-3.2 Final causes-effect map

literatures)

- Above causes-effect map described the results of research about the time overrun project at SVTECH Company Through literature review and in-depth interview related persons, ineffective scheduling and time control is the central problem lead to late product delivery and time overrun project The validated consequences of ineffective scheduling and time control and time overrun project are increase project cost and lost company’s profit, they also make customer reduce satisfaction and may lead to lose these customers for competitors Beside, ineffective scheduling and time control also impact on internal operating which make hard for arrange human resource and waste company’s resource

- In order to solve this central problem, caused has been studied from literature and confirmed There are 7 causes and they are classified in 3 groups First group involve to project management team, they are lack of knowledge and skill to adapt to work, they also are not responsible for risk identify, which is one of important responsibility of project management team Secondly, project document is not recording clearly such as scope and responsibility Besides, the

plan is not accuracy and detail Finally, measurement and analysis method and communication method is not efficient

3.3 Causes evaluation

- In order to choose suitable solution to solve the central problem, 7 causes was evaluated base on 3 criteria:

+ Ability to control

+ Ability to measure improving

+ Benefit when causes is solve

- A survey was deployed to evaluate 7 causes based on above criteria, respondents are Sale and Project Management manager, Purchase-logistic manger, HR manager, Quality Assurance manager and Chief of Operating Sale and Project Management manager, Purchase-logistic manger is responsibility for this central problem so their evaluation about the causes should be survey Besides, Human resource manager, Quality Assurance manager and Chief Operating Officer was also survey because they involve to causes For example, causes in project management team is related to employee competency so HR manager’s view is necessary, while causes in project document and project control method is a part

of process management and it is charged by Quality Assurance manager Finally, Chief Operating Officer‘s evaluation is necessary because she have the general view and give the best comparison between the causes

- Each causes was evaluated by 5 point likert-scale, with 1 is very hard to control/ measure and very low benefit and 5 is very easy to control/ measure and very high benefit (based on 3 criteria) The result was showed in section 6.7, the summarize of survey was indicated in below table:

Table 8 Summarizing of causes evaluation

Control Measure Benefit

Weak skill to negotiate with customer and control

Weak ability to identify and control risk of project 2.6 3 4.8