Mba viva slides (scm009432) (1)

Student: Ang Tze Wei (SCM-009432)
Supervisor: Dr David Goh
May 2014
MBA(GM) Viva
Topic: “Challenges and Success Factors of
Project Management (PM) Services
in Malaysia Construction Industry”

Contents
1) Chapter 1: Introduction & Background of Research
2) Chapter 2: Literature Review
3) Chapter 3: Research Methodology
4) Chapter 4: Data Analysis
5) Chapter 5: Conclusions and Recommendations
List of References

1) Introduction & Background
 In the past, there are number of construction projects in Malaysia which is
not completed in time, not up to industry standard and have quality issues
due to poor workmanship (Chan, 2002).
 Example of project using PM services and failed is Middle Ring Road with
more than 7000 cracks and other quality issues, multiple delays, cost over run and
safety issues (The Star, 2008).
 As such, effective Project Management (PM) services is crucial in delivering
solution to client and achieving the objectives of quality, scope, time, cost,
sustainability and safety.

1) Introduction & Background
Research Problem:
 What are the challenges and success factors of Project Management
Services in Malaysia construction industry?
Research Objectives:
1) To identify the roles and responsibilities of PM companies.
2) To determine and analyse the challenges or problems faced by PM
Services provided.
3) To identify the success factors of PM services in the construction industry.

2) Literature Review
Malaysia Construction Industry:
Snapshot of Malaysia Economy and Construction Sector GDP
Construction Sector 15 to 22% of GDP

Market Analysis - Malaysia Construction Industry:
 Trends and Value of Projects in Malaysia Construction Industry
Constructions Projects valued at RM 75 to 95 Billion from 2007 to 2011

Construction Industry- Moving Forward
(Economic Transformation Plan- ETP):
Estimated Total GDV of more than 230 Billion
Source: Adapted from The Star (2012, 2013)

Justification of the Research:

Project Management Theories / Models
1) Project management is the art of directing and coordinating material and human
resources throughout the project life span by utilizing various management methods
and techniques to achieve effectively predetermined goal of scope, quality, time,
cost and participation satisfaction (Dhillon 2002).

- 42 Project
Management
Processes
- 9 Knowledge Areas
- 5 Process Groups
Project Management
Processes

Comparison Analysis -General Management and Project Management

Roles & Responsibilities of PM

Benefits of having PM Services:
1) Ensures cost efficiency from overall project implementation to completion
2) Saves cost by implementing value management and re-engineering
3) Ensures project are completed on-time or ahead of project schedule
4) Ensures project are completed without compromising quality and safety
5) Ensures projects are implemented in a sustainable nature

PM Services Globally:
 PM companies and Project Management Consultancy (PMC) services have
been widely used in other countries such as US, UK and Australia for more
than 30 years (Sugata and Daryl, 2002).
 Lend Lease which is founded in 1973 based in Australia with more than 30
years establishment has the core business in property management
services, project management, consultancy and construction (Lend Lease
2011).
 In China, PM services or CS (Construction Supervision) was introduced to
improve project quality, minimize cost overruns and time delays (Ministry of
Construction, 1996).
PM Services Malaysia:
 Lend Lease has completed more than 100 projects in Malaysia. Major
references are the development of the 88-storey twin towers, one of the
world’s tallest buildings when completed in 1996 (Lend Lease, 2011).

Challenges of Construction Industry in Malaysia:
1) Construction Industry are fragmented- Different activities by different parties
undertaken in isolation. No single party with expertise, skills and capabilities
2) Labor Intensive and dependency on foreign workers- No automated process
3) Industry Image- Tarnished due to non-performing contractors
4) Payment Issues- Slow payments and under payments to contractors
5) Client Expectations and Demands- Higher quality, cheaper prices and on-
time delivery.

Challenges of PM Services in Malaysia:
1) Lack of commitment from clients
2) Lack of knowledge in PM techniques, risk management and financial skills
3) Lack of clear mission of the project
4) Frequent project scope changes
5) Conflicting project objectives
6) Financial Constraints
7) Lack of coordination between team members
8) Lack of relevant and appropriate training
9) Lack of effective way to measure project success and benefits
10) Lack of PM companies resources
Source: Adapted from Zayyana Shehu and Akintola Akintoye (2009)

Success Factors of PM Services:
 Five criteria that can be used to measure project success and the criteria are
completed in time, within budget, completed at the desired level of quality,
accepted by the customer and resulted in customers allowing the contractor to
use them as a reference (Kerzner 1998).
 Critical factors that may affect the success of PM projects (Young and Jinjoo
1998):

3) Research Methodology
 Mixed Research Method chosen
 A combination of qualitative or inductive and quantitative or deductive
approaches can build on the strengths and minimise the weaknesses of
both (Steckler, 1992).

 Interviews
-Semi structured, involved 2 experts involved with more than 10 years experience in
managing construction projects.
Data Collection -Qualitative
Sample
Interview
Guide

 Questionnaire survey
- 35 participants involved in this self administered survey. 5 point Likert Scale are
used for measurement.
- Roscoe (1975) suggests that sample size should be larger than 30 and less than
500.
- Questionnaires are distributed to professional institutions – CIDB, PAM, MIE and
REHDA.
Data Collection - Quantitative
Sample
Questionnaire
Survey

- Triangulation are used to improve the quality of this research.
- Triangulation means looking at something from multiple points of view in order to
improve accuracy (Neuman, 2006).
- The convergence of data enhanced the quality of the study (Yin, 2003)
Ensuring Quality of Research
Triangulation to Improve Accuracy

Research Limitations:
1) Findings, literature review and interviews / interviews are conducted in late
2013 and early 2014.
2) Questionnaire survey are conducted in Klang Valley areas only, due to time
and resources constraint
3) Scope of Research :PM services in Malaysia construction industry only
4) Some respondents (especially professional institutions) withdrawn from
participation due to the information are regarded as confidential. Voluntary
participation is conducted, and ethical considerations are complied.

4) Data Analysis
Interview Analysis with 2 experts
-Body of knowledge gained are also used as basis to develop questionnaire survey.
Opinions, advise and findings of the 2 experts are summarized as below:
 Role of PM Companies
Expert 1- To control and coordinate various parties of different expertise such
as Architects, Consultants, Contractor and Clients.
Expert 2- To manage multiple team of contractors, consultant and work together to
resolve issues constructively.
 Challenges of PM Services
Expert 1- Difficulty in getting precise input and requirement from client.
Expert 2- No commitment or full support given by the client or related party.
 Success Factor of PM Services
Expert 1- PM’s skills, competent and experience.
Expert 2- PM’s experience and skills in coordinating parties involved.

4) Data Analysis
Questionnaire Survey
- Frequency Analysis & Comparison of Mean Response (SPSS v19)
Section A: Demographics
Majority Respondents are Consultant
Firm (40%) that used PM services in 5
to 10 of their projects (46%).

4) Data Analysis
Section A: Demographics
Majority Respondents have 5 to 10
years working experience (43%) and
having title of Project Engineer (51%).
- Frequency Analysis & Comparison of Mean Response

4) Data Analysis
Section B: Role of PM Companies

4) Data Analysis
Section B: Role of PM Companies
Two ‘Very Important Role”
- Controlling overall
project performance
- Monitor project major
activities and ensures
the required target are
met

4) Data Analysis
Section C: Challenges of PM Services

4) Data Analysis
Section C: Challenges of PM Services
‘Significant Challenges”
- Lack of qualified, skilled
and experienced PM
practitioners in the industry
- Lack of commitment from
client
‘Moderately Significant
Challenges”
- High cost of adapting PM
companies

4) Data Analysis
Section D: Success Factor of PM Services

4) Data Analysis
Section D: Success Factor of PM Services
‘Very Important Success
Factor”
- PM companies’
competence and
experience

5) Conclusion
From the research and findings, the objectives are met and it is concluded
that:
1) Most important Role of PM Companies is to monitor project major
activities and ensures the required target are met.
2) Most significant Challenges of PM services is lack of qualified, skills
and experienced PM practitioners in the industry.
3) Most important Success Factors of PM Services is PM companies’
competency and experience.
In order to ensure PM Services are delivered effectively, continuous
training, education and awareness program to be conducted locally or
abroad.

5) Recommendations
Significance of this Research:
1) Serve as framework and impact on PM practices of Regulatory Bodies
such as PAM and CIDB in Malaysia construction industry
2) Framework and guide for PM companies to improve and gained strategic
advantage over competitors.
3) Guideline to improve corporate governance in PM Companies and
stakeholders of Project Team members
4) Impact on policies to ensure that construction projects are managed,
completed on time, within budget, quality and sustainable.
Future Research:
 The findings of this study will be more accurate if conducted with a larger
sample and to cover larger areas in Malaysia to generalize the findings.

List of Reference
Chan, I.P.C., Scott, D., Lam, E.W.M., 2002. Framework of success criteria for design/ build
projects. Journal of Management in Engineering 18, 120-128.
CIDB, 2012. Construction industry development board Malaysia. Construction Statistics, Kuala
Lumpur, Malaysia.
Charted Institute of Building (CIOB) (1988). "Project Management in Building." United Kingdom
(UK), CIOB.
Dahlan, A.N. (2009). The Critical Success Factors for Effective Performance of Malaysian
Government Linked Companies. Graduate College of Management, Southern Cross University
Australia: Unpublished Doctorate Thesis.
Dhillon, B.S (2002). “Engineering and Technology Management Tools and Applications.”
Boston, London, Artech House.
Kerzner H (2009), Project Management: A System Approach to Planning, Scheduling, and
Controlling (10th ed), New York.
Lend Lease 2011. Available at <http://www.lendlease.com>
Neuman, WL 2006, Social Research Methods: Qualitative and Quantitative Approaches,
Pearson, Allyn and Bacon.
Project Management Institute, PMI (2008). “A Guide to the Project Management Body of
Knowledge.” Newton Square, USA, Project Management Institute.

List of Reference
Roscoe, JT 1975, Fundamental Research Statistics for the Behavioural Sciences, New York:
Holt, Rinehart and Winston Inc.
Sugata, Biswas and Daryl, Twitchell (2002). "Management Consulting, a complete guide to the
industry." 2nd Edition, New York, John Wiley & Sons, Inc.
Steckler, A, Mcleroy, KR, Goodman, RM, Bird, ST & McCormick, L 1992, 'Toward Integrating
Qualitative and Quantitative Methods: An Introduction', Health Education Quarterly, vol. 19, no.
1, pp. 1-8.
The Star
4 August 2008
15 January 2012
23 December 2013
Yin, RK 2003, Case Study Research: Design and Methods, Sage, Thousand Oaks.
Young Jang and Jinjoo Lee (1998). "Factor influencing the success of management consulting
projects." International Journal of Project Management, Vol. 16, No. 2, pp. 67-72, Great Britain.
Zayyana Shehu, Akintola Akintoye (2009), Major challenges to the successful implementation
and practice of programme management in the construction environment: A critical analysis,
International Journal of Project Management, Vol. 28, pp. 26-39, Great Britain.

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