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MANAGEMENT MATURITY
A PROJECT REPORT PHASE - 1
Submitted by
PALANISAMY.V
13CMR006
MASTER OF ENGINEERING
in
DECEMBER 2014
SUPERVISOR
Date:
Submitted for the end semester viva voce examination held on ...
INTERNAL EXAMINER
EXTERNAL EXAMINER
SIGNATURE
(Mr., K.Vishnivarshan. M.E)
Date:
ABSTRACT
Construction plays a major role in both economic and social development.
The assessment of the Project Management Maturity (PMM) level shows the
company how good it is at managing projects. Project management is of high
significance for companies nowadays. This is of special interest for those
organizations which operate in the multi-project environment. For them, it is
crucial to find out how good they are at managing projects. To that end, the project
management maturity assessment concept was developed. However, getting a
picture of the organization is only the first step. The second should be to analyze
the results and, based on them, undertake appropriate activities in order to increase
efficiency in project management. This measurement can be performed in different
domains of expertise.
The assessment was done using PMM model which measured maturity in 10
areas; Scope, Time, Cost, Finance, quality, Human Resource, Risk, Procurement,
Material, Equipment, Safety. The study was mostly focused on the construction
industry as there is a dearth of research on project management topics in this
branch of the economy. The increase in maturity in project management relates to
a companys activities and processes which are undertaken to enhance the
continuous progress in the planning and execution of projects. The result of the
assessment of project management maturity (PMM) shows how good the company
is at managing projects.
ACKNOWLEDGEMENT
First I would like to thank the almighty god and my parents for their wonderful
presence with me in selecting this project.
I wish to express my profound gratitude to Thiru. V.K MUTHUSAMY B.A,
B.L, Correspondent of Kongu College of engineering for providing this grateful opportunity to
take up this project.
I am here by hearty indebted to our honorable Principal
Prof. S. KUPPUSWAMI BE., M.Sc. (Engg). Dr.Ing (France) for the facilities made available
for the progress and completion of the project.
I extend my sincere thanks to our Dean Dr. K. Krishnamurthy, PhD. for his
encouragement to me for the successful completion of the project.
I
wish
to
express
my
heartfelt
and
sincere
thanks
to,
Dr. S. KRISHNAMOORTHI, Head of the Department, Department of civil engineering who
extended his helping hands and effective guidance for completing the project.
This is great pleasure to express our deep gratitude and thanks to our guide
Mr. VISHNUVARDHAN. K M.E., for his ideas, effective support and continue
encouragement which enabled for successful completion of this project,
I thank all the teaching and non teaching staff of Department of Civil
Engineering, Kongu Engineering College, for their extended Co-operation during my project
work.
I express my gratitude to my family members and friends for being my moral
support throughout the project work.
TABLE OF CONTENTS
CHAPTER
NO.
1.
TITLE
PAGE
NO.
Abstract
(iv)
Acknowledgement
(v)
List of Tables
(vii)
INTRODUCTION
1.1 GENERAL:
1.2 DEFINITIONS AND THEORY
1.3 RESEARCH OBJECTIVES
1.4 RESEARCH MOTIVATION
1.5 RESEARCH SCOPE
1.6 RESEARCH SIGNIFICANCE
2.
LITERATURE REVIEW
3.
RESEARCH METHODOLOGY
3.1 METHODOLOGY ADOPTED
3.2 METHODOLOGY CHART
4.
5.
QUESTIONNAIRE DESIGN
6.
WORK DONE
6.1 WORKS DONE IN PHASE I
6.2 WORKS TO BEDONE IN PHASE - II
LIST OF TABLES:
SL.NO
1
TITLE
QUESTIONNAIRE FOR PROJECT MANAGEMENT
PAGE NO:
project teams need to decide which processes to employ, and the degree of rigor that will be
applied to the execution of those processes. (Project Management Institute (PMI), 2004). In
addition to the above nine knowledge areas, there are other industry specific additional
knowledge areas that the project manager should consider in managing projects. For example,
the construction extension to PMBOK includes four additional knowledge areas of financial,
safety, environment and claim management.
1.2.2 PROJECT MANAGEMENT VS. GENERAL MANAGEMENT
The fundamental difference between project management and general management stem
from the difference in the type of work they manage. Project management deals with
management of projects (which are temporary and unique) whereas, general management deal
with management of operations (which are ongoing and repetitive). Generally project
organization changes continually as the project progresses through its various phases and
terminate when the mission is accomplished; whereas the ongoing organizations that manage
operations sustain at least over a period of time and continue assuming a broader outlook
[ (Project Management Institute (PMI), 2004),(Hendrickson), (Carmichael, 2004)].
Despite the existence of fundamental difference between project management and
general management; both general management and project management share many things in
common. Both share the same basic philosophies, both make and implement decisions, allocate
resources, manage organizational interfaces, and provide leadership for the people who are
involved in performing the work. Generally, in addition to knowledge of project management,
successful management of project demands knowledge of general management and working
knowledge of application areas ( for example for a construction project knowledge of
construction )[ (Cleland & Ireland, 2002), (Project Management Institute (PMI), 2004),
(Hendrickson)].
1.2.3 PROJECT MANAGEMENT APPLICATIONS
Generally, Project management is used extensively in some form within many
organizations. There has been no identified profession or industry where project management
practices will not work (Cleland& Ireland, 2002).Using project management generally helps: to
clarify goals and identify problem areas and risk; to isolates activities and easily monitor
outcomes. (Project Management Institute (PMI)). Further, using PM enhances accountability as
works can be isolated and responsibilities can be assigned; moreover, it helps focus attention on
few specific and important tasks. Generally, According to (Cleland & Ireland, 2002) and others,
Project management can best be applied when:
Resources are to be shared among many units.
Special attention or focus is to be given to important undertakings (example to
focus attention on specific customers in specific market).
Integration of systems and subsystems is sought within independent units.
Dealing with ad hoc, complex, unfamiliar, unique, or rare; activities, problems
and opportunities.
Dealing with tasks that require pooling of many resources and capacities from
diverse sources (example providing emergency response during disasters).
What is common in most of the above definitions is the idea of consistent and repeated
practice, measurement and improvement or advancement. According to (Paulk et-al, 1993) ,as an
organization matures, the predictability, effectiveness, and control of an organizations processes
are expected to improve. Maturity in project management is a never-ending journey, with a
never-ending cycle of bench- marking and continuous improvement (Kerzner, 2001). As an
organization gains in (project management) process maturity, it institutionalizes its project
management process via policies, standards, and organizational structures. Institutionalization
(demands) building infrastructure and a corporate culture that supports the methods, practices,
and procedures of the organization so that they endure after those who originally defined them
have gone (Paulk etal,1993).The more mature an organizations practices are, the more likely
the organization meets its project goals successfully. (PM Solutions, 2008).
According to (Chrissis, Konrad, & Shrum, 2003) , a matured process is well understood
throughout a mature organization; usually through documentation and training, and the process
is continually being monitored and improved by its users. The capability of a mature process is
known. Process maturity implies that the productivity and quality resulting from an
organization's use of the process can be improved over time through consistent gains in the
discipline achieved by using its process .A mature organization has an organization-wide ability
for managing initiatives based on standardized and defined management processes. In such
organizations, activities are carried out according to defined processes and plans. Roles and
responsibilities are well defined and understood. Such organizations have also an objective way
of measuring performance and quality.
Necessary information and database for doing that [ (Office of Government Commerce
(OGC)) (Supic, 2005)]. In general, in a matured organization, a disciplined process is
consistently followed because all of the participants understand the value of doing so, and the
necessary infrastructure exists to support the process (Sarshar, et al., 2000).
An immature organization on the other hand is an organization that does not have or use
consistent and defined processes in management of its projects (Sarshar, et al., 2000). An
organization that is immature in project management may occasionally deliver individual
(projects) that produce excellent results. However, in such cases managers are more likely to be
working reactively, focusing on solving immediate issues, rather than proactively acting. In
addition, schedules and budgets are likely to be exceeded and if deadlines are imposed, the
quality of deliverables is likely to be compromised in order to meet the schedule. In an immature
organization, repeatable processes and results depend entirely on the availability of specific
individuals with a proven track record. (Office of Government Commerce (OGC)).
Attaining maturity would not necessarily guarantee that a project would be successful.
However, it could increase a project's chances of being successful. It should be noted that the
processes of attaining maturity is not a one-time event that is accomplished by declaring a
methodology and structure, nor it is a quick fix for immediate tactical problems rather, it is a
consciously planned and properly managed continuous improvement effort [ (Supic, 2005),
(Kaya & Iyigun, 2001), (Saiedia & Kuzara, 1995)].
1.3
RESEARCH OBJECTIVE:
1.4
RESEARCH MOTIVATION:
I decided to do this thesis research on such a very broad topic purposely and ambitiously. The
two main reasons that drive me to do so were:
1.
My interest to use the opportunity to help me realize my aspirations in my
professional goal. I was looking for a broad research topic that would enable me
consolidate my PM knowledge, its practice in the context of the construction
industry and developing countries , so that it can help me in the future in research
,teaching and consultancy services in the area.
2.
1.5
RESEARCH SCOPE
1.6
RESEARCH SIGNIFICANCE
3.
It has assessed impact of recent PM development efforts and the impact of ISO
certification in helping contractors PM maturity.
4.
The results of the maturity assessment provided by the CIM3 shows that
Guyanas construction industry is least mature with respect to health and safety
management and most mature with respect to cost management.
The overall maturity of Guyanas construction industry was found and the overall
level of realisation of the combined performance goals of the construction
industry is significantly low.
According to the final conclusion, only a few knowledge areas where given prior
importance and most of the knowledge areas where neglected by the project team.
The maximum possible maturity scores reveal that the overall performance of
Guyanas construction industry is influenced to a greater extent by its quality
management key practices, followed by its cost management key practices, then
by its health and safety management key practices and, finally, by its human
resource management key practices.
The study was exploratory in nature and utilized a questionnaire survey method to
collect data on project management Maturity in Ghanaian organizations.
The findings showed that differences exist in the current project management
maturity levels across each phase of the project life cycle for all organisations.
The study also showed that most of the practitioners expect their respective
organisations to attain higher levels of project management maturity (PMM)
albeit at various levels.
This paper addresses the issue of project management maturity and how it may
be modelled.
This paper reports that the Maturity of project management helps us understand
several things like the competence of the organization with current trends and in
the self assessment of the key factors in the organization.
It suggests that construction contractors are the key persons for the success and
development of the industry.
He also suggests that the project management will continue to evolve and varies
from institution to institution.
This paper describes the problem of project maturity for construction companies
when analyzed by their ability to execute construction investment projects. On
the basis of survey results it was revealed that the success of a company is
connected with the increasing level of project maturity as a condition for a
successful project management.
Which can be done by adopting a five step model for continuous improvement
via,
1.
2.
3.
4.
5.
Planning ability
Project management
Maturity Measurement
Maturity Evaluation
Project maturity
According to the results of the surveys presented in the article, it was revealed
that there is no doubt; construction companies should try to improve their ability
to manage projects.
success:
Project Management Journal, 2010, 35(1), pp 30-45.
A cultural framework,
Inference:
This paper summarizes the results study done to determine the financial and
organizational impacts of Project Management (PM).
Organisational structure;
3.
4.
project
of
fit
management maturity.
and
value.
Project
Inference:
Mullaly, M.E.M. & Thomas J made a study to assess project management
maturity level in Indonesian businesses may bring insight about current business
practices, which is important to speed up country development and business
sustainability.
Mullaly & Thomas point out that there seems to be a relationship between
maturity and performance, but that no statistically significant correlations exist to
prove it.
This indicates that project failures are often the result of organisational aspects
beyond the influence of the project manager; and they claim that a higher level of
organisational maturity enhances project performance.
20th
Annual
Project
Conference,
Inference:
This paper presents the findings of an investigation to evaluate the role of Project
Management Maturity Models (PMMM) in improving practice.
From their study they found that the construction industry has an overall maturity
level or rank of 3.56.
The paper concludes by highlighting the limited empirical evidence that has
linked project maturity and project performance and makes suggestions for
further investigations to fill this gap.
8) Seweryn
This article presents the assessment done using the PMM model, which measured
maturity in four areas: methods and tools, human resources, project environment
and knowledge management.
The major research effort was focused on the machinery industry as this sector of
the economy is not well recognized in empirical research related to project
management. Moreover, the main aim of the study was to compare Polish and
foreign companies via an examination of diverse industries.
The results from this article show that, irrespective of the country of origin of the
company, the lowest maturity levels in the knowledge management area were
noticed in the machinery industry (1.59). Then, the maturity level increases
slightly in construction (2.35) firms.
9) Young
Hoon
Kwak,
and
C.
William
Ibbs,
management
maturity,
PMIS
education
PMIS northern California chapter report, 2011, pp. 234 252.
Assessing
foundation
project
and
Inference:
The principal goal of this study was to determine the financial and organizational
impacts of Project Management (PM).
The PM Maturity assessment for all companies averaged 3.26 on a relative scale
of 1 (lowest) to 5 (highest). Overall the Engineering-Construction (EC) industry
had the highest score, and the Information Systems (IS) application area had the
lowest.
The result is that this study methodology provides a set of tools for organizations
to use in identifying key areas of opportunity for improvement in project
management.
This study showed that we have a start in understanding and forming a theory of
project management, yet there are still many gaps in our knowledge areas.
Literature Study
Identification of
Knowledge Areas
Collection of Data
Questionnaire
Preparation
Questionnaire
Survey
Analysis of
Information
Result and
Discussion
Initiating
Planning
Executing
Monitoring and Controlling
Closing
Processes overlap and interact throughout a project or phase. Processes are described in terms of:
Inputs (documents, plans, designs, etc.)
Tools and Techniques (mechanisms applied to inputs)
Outputs (documents, products, etc.)
The ten knowledge areas are:
Each knowledge area contains some or all of the project management processes.
For example, Project Procurement Management includes:
Plan Procurements
Conduct Procurements
Administer Procurements
Close Procurements
Researcher: V.Palanisamy
E-MAIL:
vishnukaruna@gmail.com
E-Mail: palanisamycivil44@gmail.com
Mobile:
B. No
B. Bachelors
C. Certificate
D. Short-term
4. Your organization is
A. Local private company
C. Foreign company
E. Local Endowment
B.Grade-2 (GC2/BC2/RC2)
C. Grade-3(GC3/BC3/RC3)
8. Approximately, for how long has your organization been in the construction business?
B. Road
B .No
C. I do not know
General Direction:
Answer all the Questions that follow based on your knowledge of practice of Project
Management in the project you are participating or in the organization you are working...
Description
Very
high
High
Avg.
Low
Very
low
Very
high
High
Avg.
Low
Very
low
5.
6.
Sl.no
1.
2.
3.
4.
5.
6.
7.
3.
Sl.no
1.
2.
3.
Very
high
High
Avg.
Low
Very
Low
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Description
1.
2.
3.
4.
5.
6.
Very
high
High
Avg.
Low
Very
Low
Very
high
High
Avg.
Low
Very
Low
7.
8.
9.
10.
11.
12.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
Very
high
High
Avg.
Low
Very
Low
Very
high
High
Avg.
Low
Very
Low
Description
1.
2.
3.
4.
5.
6.
7.
8.
Description
1.
2.
3.
4.
5.
6.
7.
8.
Very
high
High
Avg.
Low
Very
Low
Very
high
High
Avg.
Low
Very
Low
9.
10.
9. Procurement Management
Sl.no
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Description
1.
2.
3.
4.
5.
6.
Frequency of maintenance
7.
8.
9.
10.
Very
high
High
Avg.
Low
Very
low
Very
high
High
Avg.
Low
Very
low
Very
high
High
Avg.
Low
Very
low
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Title selection
Literature study
Methodology framing
Identification of key factors
Questionnaire design
Identification of respondents
6.2 WORKS TO BE DONE IN PHASE II
The following are the works yet to be done in phase II;
Questionnaire survey
Information analysis
Result and Discussion
Thesis writing
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