2-Effectiveness of Software Applications in Construction Project Management
2-Effectiveness of Software Applications in Construction Project Management
University of Moratuwa
April 2013
EFECTIVENESS OF SOFTWARE APPLICATIONS
IN CONSTRUCTION PROJECT MANAGEMENT
BY
Supervised by
Dr.Rangika Halwathura
i
DECLARATION
I hereby certify that this dissertation does not incorporate any material without
acknowledgement and material previously submitted for a degree or diploma in any
university to the best of my knowledge and I believe it does not contain any material
previously published, written or orally communicated by another person except where
due reference is made in the text.
……………………………………
(09/8870)
…………………………………..
Research Supervisor
Dr.Rangika Halwatura
Date : …………………………..
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ABSTRACT
Over 80% of firms are using MS Project as project management software & usage
was limited only for initial basic facilities provided by software and very less usage in
cost & resource related activities. Providing easy administration of works, integration
& approach to repetitive tasks, Force due to competitors & consultants are most
important factors highlighted as reasons for usage. Non availability of trained staff &
lack of interest among top management are significant difficulties faced. Only 35% of
firms have a plan to develop their software systems.
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ACKNOWLEDGEMENT
Finally, I wish to express my gratitude to my wife & son, for their support, dedication
to allow me to complete this research successfully & also my parents, for their
encouragement and inspiration given me to pursue my higher studies.
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CONTENTS
Content Page no
2.1 General 11
2.2 Project Management Software 11
2.3 Separating Planning & Scheduling 13
2.4 Critical Path 14
2.5 Why Critical Path Method is so important 16
2.6 Resource Histograms for resource planning 18
2.7 Non Uniform resource requirement 18
2.8 Leveling of Resources 18
2.9 Calendars 19
2.10 Scheduling 20
2.11 Progress Monitoring & Control 22
2.12 Cost Control 23
2.13 Enterprise project management 26
2.14 Web-based Project Management System 27
2.15 Project Management System-ASP 28
2.16 Summary 33
3. Chapter 3 - Methodology
3.1 General 34
v
3.4 Formulation of Interview Questionnaire 36
3.5 Pilot Study 38
3.6 Identification of Target Group 39
3.7 Data Collection 40
3.8 Summary 40
4.1 General 41
4.2 Analysis and Discussion of Results 41
4.3 Planning 45
4.4 Scale used for analysis 50
4.5 Scheduling 57
4.6 Monitoring & Controlling 62
4.7 User Satisfaction of PM Software Features 67
4.8 Difficulties faced by companies 69
4.9 Benefits gained using project management software 70
4.10 Future Development 71
4.11 Summary 73
5.1 Conclusions 75
5.2 Recommendations 77
5.3 Recommendations for Future Research 78
6. References 79
7. Appendixes 80
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LIST OF FIGURES
Chapter 02
1. Figure 2.1: Microsoft Project-sample Gantt chart 12
2. Figure 2.2: Project Management Process 15
3. Figure 2.3: Gantt Chart 22
4. Figure 2.4: Functional Scheme of WPMS 28
Chapter 03
5. Figure 3.1- Target Group of the Study 39
6. Figure 3.2- Selected Sample for the Study 39
Chapter 04
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LIST OF FIGURES
viii
LIST OF TABLES
ix
ABBREVIATIONS AND ACRONYMS
PM - Project Management
IT - Information Technology
PC - Personal Computer
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CHAPTER 1
1. INTRODUCTION
1.1 Introduction
1
has aggravated this problem. Frequent interruption of works has been noticed due to
this reason. (ICTAD, 2008)
A construction program involves a wide range of aspects such as site
investigation; feasibility studies; project reports; planning for the works including
method of construction and the requirement of men, materials, equipment, and
finances; monitoring of work during construction; providing necessary controls from
planning to the completion of the work and its maintenance when required. For the
contractor it also mean his own investigation and market survey; bidding for works;
planning and execution of works, settlement of contractual disputes and the
realization of outstanding dues in good time. The entire process involves most
complex and sensitive issues, particularly for contracting organization, which has to
start with offering of the construction proposal for the work and includes the factor
that carry weight in determining whether bid with adequate caution or with the
acceptance of some risks which appear unavoidable because of the nature of industry
in which it is placed.
Hence completing a construction project without time and cost overrun is a
great challenge. This means, there are a lot of data to be handled in a short period of
time; a lot of people involved; a need to be able to store data for later use; a lot of data
needing manipulation using simple and repetitive calculations and most importantly a
need for timely and accurate information.
How this can be achieved cost effectively and successfully? One possible
mean is with the use of IT, emphasizing on computers as a tool. Here it is critical to
understand what an effective information system requires. An effective information
system where computer capability plays an important role has the following general
conditions; (Jeyaweerasingham, 1996).
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The availability of timely and accurate information to achieve business
goals.
The construction Industry in Sri Lanka is in a very backward state compared to other
developed & South Asian countries. Many factors contribute to the poor performance
of the construction industry of which one is the scares use of IT. Other sectors in
economy such as banks, share market and financial institutions are using IT in a day
to day operation. (Premasiri,2000).
Above condition prevails same in the Sri Lankan construction industry, even after 12
years, after the above comment was made, & the situation related to usage of project
management software for planning & control aspects in management of constructing
companies involved in building construction were taken in to consideration of this
research.
1.2 Background
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information technology since early nineties is reflected in the construction industry
especially in communication & the management areas where it is used for planning &
control.
The construction industry is fragmented due to the many stakeholders and phases
involved in a construction project. This fragmentation has led to well documented
problems with communication and information processing and has contributed to the
proliferation of adversarial relationships between the parties to a project. This
fragmentation is also often seen as one of the major contributors to low productivity
in construction.
In Sri Lanka, managing small and medium construction projects by local contractors
is still being done in a very traditional manner. Progress reports including cost
control; labour; material and equipment reports are prepared in monthly intervals.
Progress monitoring is not carried out throughout the project. Everywhere we are told
that we are in the age of optimization of planning, scheduling and controlling
construction projects, yet increasingly many of our project are out of control, cost are
exceeding estimates; completion times are exceeding schedules and owners are
becoming increasingly dissatisfied with the status of the projects (Jeyaweerasingham,
1996)
4
There is no any significant change experience in the Sri Lankan construction industry
relating to the aforesaid quote, where still most of projects result out of control
behaviour, specially of time & cost aspects, caused due to several reasons, where one
of the objective of this research is to identify to what extent the usage or non usage of
project management software available has affected to this environment.
Ever developing construction industry is becoming more and more complicated due to
the following factors, (Zoysa, 2002)
All the above listed factors reinforce the fact that even though we have invented new
construction materials, methods, equipment and various modern technologies
considerably, completing a project within the set time and cost has become extremely
difficult unless a good project management approach with regard to planning,
scheduling, monitoring and controlling is adopted.
Since the objectives of a construction firm are to maximize their profits and/or the
survival among tight competition, it follows that computer software will be one of the
most important tools required in managing of construction projects.
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The latest software available for project management provide facilities / services in
widely spread area relating to construction industry and dedicated software are now
available, depending upon the requirement of organisation and its scales of needs to
manage projects effectively and efficiently, despite of the size or scale of the project.
Usage of these available facilities will depends on the price of the software,
configuration requirement of systems, availability of trained personnel, awareness of
the facilities provide in software systems, alternatives available etc in the construction
industry.
In Sri Lanka, managing small and medium construction projects by local contractors
is still being done in a very traditional manner. Progress reports including cost
control; labour; material and equipment reports are prepared monthly intervals.
Progress monitoring is not carried out throughout the project & even though the
tracking, monitoring was carried out, the efficiency & effectiveness was not to the
required levels. Though the industry as a whole in a stage of optimization of planning,
scheduling and controlling construction project, yet increasingly many of our project
are out of control, cost are exceeding estimates; completion times are exceeding
schedules and owners are becoming increasingly dissatisfied with the status of the
projects. This has indicated that Sri Lankan construction agencies are very often
labelled as being inefficient performers, when measured against the success/ failure
criteria of cost, time and quality. It is important that the construction industry make
full use of the computer technology, an ideal which has not always been achieved in
the past. (G.P.Jeyaweerasingham, 1996)
1.4 Objectives
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What are the key areas of Project Management where software application is
needed to enhance productivity? Under this, attempt will be made to find the
areas where achievements by firms show significant lags than expected, while
studying the involvement of software to improve outcome.
1.5 Methodology
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Areas where software can be used effectively in Construction Project Planning &
Control
The key areas of Project Management where software application is needed to
enhance productivity.
Difficulties faced & benefits gained by construction companies of using project
management software
e) The building construction firms are using project management software for
their projects mainly since the facility provide easy administration of works,
integration & approach to repetitive tasks. One important finding of this study
was the contractor firms have mentioned that, force due to competitors,
project teams & consultants as the second most important factor for usage of
project management software.
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f) Non availability of trained staff has become the most significant reason,
appeared as difficulty faced by the construction firms of usage of dedicated
project management software. Lack of interest among top management of
utilizing latest project management software within their companies has
become the second most responded reason, as the difficulties faced.
g) Only around 35% of construction firms in the industry have a plan to develop
their software systems in future to facilitate the project management activities.
The rest, 65% does not have any plan of improving their systems.
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study, how the target groups were identified and how the data
collection was carried out.
1.8 Summary
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CHAPTER 2
2. LITERATURE REVIEW
2.1 General
In chapter 2, an abstract from the literature reference made throughout the study to
publications, journals, research reports, similar studies etc were included which
provide the basic information of existing condition of the Sri Lankan construction
industry, project management tools & techniques and its applications related to
construction, available software facilities to assist various activities of construction
project management.
Project management software has a capacity to help plan, organize, and manage
resource pools and develop resource estimates. Depending the sophistication of the
software, resource including estimation and planning, scheduling, cost control and
budget management, resource allocation, collaboration software, communication,
decision-making, quality management and documentation or administration systems.
Today, numerous PC-based project management software packages exist, and they are
finding their way into almost every type of business. In the early days, however,
project management software ran on big mainframe computers and was used only in
the large projects. These early system were limited in their capabilities and, by today's
standards, were hard to use. Some of the widely use project management software by
the construction industry have been discussed below.
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Microsoft Project was the company's third Microsoft Windows-based application, and
within a couple of years of its introduction it became the dominant PC-based project
management software.
Project creates budgets based on assignment work and resource rates. As resources
are assigned to tasks and assignment work estimated, the program calculates the cost,
equal to the work times the rate, which rolls up to the task level and then to any
summary tasks and finally to the project level. Resource definitions (people,
equipment and materials) can be shared between projects using a shared resource
pool. Each resource can have its own calendar, which defines what days and shifts a
resource is available. Resource rates are used to calculate resource assignment costs
which are rolled up and summarized at the resource level. Each resource can be
assigned to multiple tasks in multiple plans and each task can be assigned multiple
resources, and the application schedules task work based on the resource availability
as defined in the resource calendars. All resources can be defined in label without
limit. Therefore it cannot determine how many finished products can be produced
with a given amount of raw materials. This makes Microsoft Project unsuitable for
solving problems of available materials constrained production. Additional software is
necessary to manage a complex facility that produces physical goods.
The application creates critical path schedules, and critical chain and event chain
methodology third-party add-ons also are available. Schedules can be resource
leveled, and chains are visualized in a Gantt chart. Additionally, Microsoft Project can
recognize different classes of users. These different classes of users can have differing
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access levels to projects, views, and other data. Custom objects such as calendars,
views, tables, filters, and fields are stored in an enterprise global which is shared by
all users.
The planner who draws a bar chart is trying to do two things at the same time. One is
planning, that is, analyzing the project into individual jobs and showing the logical
relationships between them. The other is scheduling, which imposes a set of times
upon the plan. (Battersby, 1964)
2.3.1 Planning
Planning is the process of thinking about and organizing the activities required to
achieve a desired goal.
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combines forecasting of developments with the preparation of scenarios of how to
react to them.
An important, albeit often ignored aspect of planning, is the relationship it holds with
forecasting. Forecasting can be described as predicting what the future will look like,
whereas planning predicts what the future should look like.
2.3.2 Scheduling
One of the most common project management software tool types is scheduling tools.
Scheduling tools are used to sequence project activities and assign dates and resources
to them. The detail and sophistication of a schedule produced by a scheduling tool can
vary considerably with the features provided and the scheduling methods supported.
Scheduling tools may include support for:
A critical path is the series of tasks that will push out the project’s end date if the tasks
are delayed. The work critical has nothing to do with how important these tasks are to
the overall project. It refers only to how their scheduling will affect the project’s
finish date. However, the project finish date is of great importance in most projects. If
you want to shorten the duration of a project to bring in the finish date, you must
begin by shortening (also referred to as “crashing”) the critical path. (Johnson, 2007)
Before discussing the project management tools, it is worthy to understand how the
project management process i.e. planning, scheduling, monitoring & controlling with
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corrective actions are carried out. The main objectives of project are to complete a
prescribed amount of work within a fixed duration at a previously estimated cost to
the required quality. To achieve these objectives project planning, scheduling,
monitoring & controlling are necessarily required. (Zoysa, 2002)
Project Field
docs Input
Activity List
Basic Resource Time – Cost Basic Resource
Assignment Assignment Assignment
There are various project management techniques and tools, which can be used for
each of these phases depending upon the type and the size of the project. In case of
planning, there are a considerable number of techniques such as Critical Path Method
(CPM), Bar charts, Programme Evaluation & Review Technique (PERT), Linear
Scheduling Method (LSM), Line of Balance (LOB), Work Study Technique and
operation techniques. (Jayawardana, 1995)
Even though techniques such as CPM, LOB and Linear Scheduling can be used in
construction project management activities, the Critical Method with its associated
tools for all three phases, planning, scheduling, monitoring and controlling is the most
popular, effective and the efficient technique which is vastly used in project
management activities especially in construction works (Jayawardana, 1995)
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2.4.1 Critical Path Method (CPM)
CPM is a planning technique in which a network is prepared and a sequence of
network activities is defined such that if the completion of any one of them is delayed,
the completion of the project will also be delayed. This sequence of critical activities
is called the critical path. (Westney, 1985)
The Critical Path Method is a powerful tool for planning and management of all type
of projects. It provides a precise mathematical approach for planning, scheduling and
control and allows ready evaluation and comparison of alternative work programmes,
construction methods and types of equipment by changing individual activity
durations, resources or relationships between activities (Jayawardana, 1995)
Further, network and its associated tools provided by the CPM help the project
manager with precise information on the effect of each variation or delay in the
adopted plan thus allowing identification of operations which needs remedial actions.
The use of CPM is well established in variety of industries and is very much
established in the construction industry as stated above.
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Therefore, CPM is a very important and effective technique in the project
management activities and hence should necessarily be incorporated in the project
management software packages available for project management activities. There are
various project management tools based in critical path method. They are required at
various stages of a project.
The first task, which has to be carried out in CPM, is to identify (Lock, 1996)
Once these tasks are finalized any project management software should be capable of
accepting this information so that the project manager can effectively use for project
management techniques which will be discussed below.
2.5.1 Networks
As we all are aware, network is a representation of the project plan by a schematic
diagram that depicts the sequence and interrelationship of all the activities of the
project. A fully developed network is a logical and mathematical model of the project
based on single activity duration. This can be used to quickly establish the earliest
start time, latest start time, earliest finish time, latest finish time, floats, critical path
and the project duration of a project. (Clough/ Sean, 1991)
1. Activity on Arrow Network
2. Activity on Node (Precedence) Network
As the name imply, in the activity on Arrow Network, Arrows represent the activities,
where as the activity on Node Network, the activities are represented by Nodes.
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Highlight the need for other management techniques (work study) and indicate
where such techniques are mostly applicable.
Represent the inter-relationships of all the activities.
As we well aware, a project requires several resources such as skilled and non skilled
labourers, other personnel who are engaged in construction activities as required,
plant and any other things as may be required. The problem that project managers or
planners encounter is to find out when they need different type of resource during the
project period, how many of each category is required at different times and whether
available resource are sufficient. However, if they are not sufficient what actions can
be taken to overcome the problems could be easily thought off.
The resource requirement for each category of resources can be clearly seen in a
resource histogram. Hence, any software package intended to be used for project
management should have the facility to produce this type of resources histograms.
Generally, when resources are assigned to an activity, it assumes that the resource
usage starts when the activity commences and continues until the activity finishes.
However, there are situations where a particular resource is not required until the
activity has been underway for a few days. It is also possible that the resource is not
consumed at an event rate through the allocated period.
If the resource histogram indicates a lot of peaks and troughs or exceeds the resource
ceiling, the non-critical activities should be moved within their floats using defined
priority criteria to smooth the resources below the ceiling. If it is still impossible, the
logic of the network will have to be re-arranged to accommodate resource demand.
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This is in fact a very tedious process if carried out manually. So, any software
package intended to be used for project management activities, should have the
facilities to level resources according to a priority order against the availability to stay
within the resource limit. Normally, resource levelling does not change the activity
duration or resource requirement s but it delays the scheduled dates. In this situation,
two approaches can be made. The first is to move activities within floats or even
delaying outside the floats to accommodate the demand of resources with the
availability and checking the schedule to see whether it is acceptable. The second is to
assign more resources during the peak periods (Jayawardana, 1995)
There for, any software package intended to be used for project management activities
should necessarily have the facility to experiment by using deferent levels of
availability or modify the Network logic and then re-schedule to see the impact of
alternative approaches. (Jayawardana, 1995)
When using specially designed project software, levelling typically means resolving
conflicts or over allocations in the project plan by allowing the software to calculate
delays and update tasks automatically. Project management software levelling
requires delaying tasks until resources are available. In more complex environments,
resources could be allocated across multiple, concurrent projects thus requiring the
process of resource levelling to be performed at company level.
2.9 Calendars
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2.10 Scheduling
Once the project is planned using the critical path method including the resources, the
planned dates must be communicated in a schedule for execution. The schedules can
be prepared in the form of a bar chart, histogram, table or a report. Therefore, any
project management software package should have the facility to produce required
schedules based on project management tolls as herein described.
Given below are some of the common schedules, which are considered as paramount
important for project management activities (Jayawardana, 1995).
Bar chats “Gantt Chart” is perhaps the most extensively used tool for scheduling. Its
versatility arises from the simplicity of its preparation; its use and its capacity to
accommodate various forms for effective communications.
A Gantt chart is a type of bar chart, developed by Henry Gantt in the 1910s, that
illustrates a project schedule. Gantt charts illustrate the start and finish dates of the
terminal elements and summary elements of a project. Terminal elements and
summary elements comprise the work breakdown structure of the project. Some Gantt
charts also show the dependency (i.e., precedence network) relationships between
activities. Gantt charts can be used to show current schedule status using percent-
complete shadings and a vertical "TODAY" line.
Gantt charts have become a common technique for representing the phases and
activities of a project work breakdown structure (WBS), so they can be understood by
a wide audience all over the world.
A common error made by those who equate Gantt chart design with project design is
that they attempt to define the project work breakdown structure at the same time that
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they define schedule activities. This practice makes it very difficult to follow the
100% Rule. Instead the WBS should be fully defined to follow the 100% Rule, then
the project schedule can be designed.
Although a Gantt chart is useful and valuable for small projects that fit on a single
sheet or screen, they can become quite unwieldy for projects with more than about 30
activities. Larger Gantt charts may not be suitable for most computer displays. A
related criticism is that Gantt charts communicate relatively little information per unit
area of display. That is, projects are often considerably more complex than can be
communicated effectively with a Gantt chart.
Gantt charts only represent part of the triple constraints (cost, time and scope) on
projects, because they focus primarily on schedule management. Moreover, Gantt
charts do not represent the size of a project or the relative size of work elements,
therefore the magnitude of a behind-schedule condition is easily mis-communicated.
If two projects are the same number of days behind schedule, the larger project has a
larger effect on resource utilization, yet the Gantt does not represent this difference.
Because the horizontal bars of a Gantt chart have a fixed height, they can
misrepresent the time-phased workload (resource requirements) of a project, which
may cause confusion especially in large projects. A related criticism is that all
activities of a Gantt chart show planned workload as constant. In practice, many
activities (especially summary elements) have front-loaded or back-loaded work
plans, so a Gantt chart with percent-complete shading may actually mis-communicate
the true schedule performance status.
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Figure 2.3: Gantt Chart
2.10.2 Reports
Producing various reports indicating detailed information of a project such as early
start date, early finish date, late start date, late finish date, float and other information,
which gives an immediate picture of which alternatives are most important in getting
the project completed on time, is extremely important. Hence the project management
software packages, which are intended to be used for project management activities
specially, should be equipped with these tools to provide those reports whenever
required.
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Therefore, it is important for any project management software packages to
give this kind of information in a report.
The areas covered by most of these so-called project management software packages
are as follows. (Jayawardana & De Mel, 1994)
Project Planning & Scheduling
Resource Management
Progress Monitoring & Control
Cost Control & cash flow forecasting
Presentation of information through various reports
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or out of the project, considering the timing and the amount of the transactions. Cash
flow forecasting means estimating of the cash, position of the project by considering
the net effect of cash inflow and cash out flow, and timing of transactions. Net cash
flow of a project during a period is the difference between cash in and cash out during
that period. Therefore, cumulative cash flow is the net cash flows of all the preceding
periods. (Gunasekara, 1994)
The cash flow forecasting provides an early warning system to predict, possible
insolvency. Accordingly, the contractor will have time to plan and make preventive
actions as appropriate. Some of the advantages of cash flow forecasting are;
To adjust the work schedules of existing contracts so that minimum capital will be
locked-up.
To negotiate the credit facilities with suppliers.
To negotiate payment terms with clients
Facilitate to make decisions whether to invest in fixed assets such as
construction plant, building etc
To negotiate overdraft limits with bankers.
Some of the tools, which the project management software packages, should be
facilitates for are as follows,
(1) Actual Vs Target cost histograms
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(2) Earn Value Analysis
The performance can be determined using earned value, which calculates the
value of work satisfactorily completed, based on a completed tart=get plan,
Measuring performance involves three key indicators. Budgeted Cost for
Work Scheduled (BCWS), Budgeted Cost for Work Performed (BCWP), and
Actual Cost for Work Performed (ACWP). BCWS is the planned budget to
date, BCWP is the budgeted value of work done to date and ACWP is the
actual amount spent to date for the work performed.
The difference between the BCWS and BCWP is the schedule variance. The
difference between the ACWP and the earned value (BCWP) is the cost
variance.
Projected cost histograms with cumulative cost curves indicate the cash
pattern in the future. This will no doubt help the project manager in his
decision making so as to make sure that the project will be completed within
the targets.
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In recent years, with general adoption of (IT) governance practices, Enterprise Project
Management has become more specific: whereas in the 1990s focus was generally on
the management of the single project, in the subsequent decade the focus lay more on
the fact that a project is likely to not be the only one in the enterprise. The project co-
exists with many other projects in the enterprise, or may be part of one or more
programs. It may utilize (human) resources that are shared among other projects.
An even more recent evolution in Enterprise Project Management is to not only plan
and track the existing set of projects, but to create a portfolio (per budget size, per
calendar year, per budget year, per business line, etcetera) of existing and future
(demand) projects. This is called Project Portfolio Management. Just like with a
portfolio of shares, Project Portfolio Management is the activity of selecting which
projects to keep in portfolio (because of their anticipated value) and which ones to
discard (because of their obsoleteness or because they will not yield the value that was
initially calculated). Project Portfolio Management includes the creation of various
scenarios to decide which is the most optimal portfolio (for a certain year, business,
budget, etcetera). Once the contents of the portfolio are agreed upon, it is key to
constantly scrutinize how the individual projects are evolving in terms of quality, cost
and schedule.
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From an IT management perspective, Enterprise Management essentially means
enterprise-wide network administration, which is becoming increasingly complex.
The corporate network environment is no longer tied to a single vendor, let alone a
single platform. More and more, corporate intranets are multidomain, multiprotocol,
multiplatform systems. They contain hardware and operating systems from a number
of different, competing vendors. This situation creates administrative overhead that
can easily make the cost of owning such networks prohibitive for all but the largest
and most profitable organizations.
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Figure 2.4: Functional scheme of WPMS (Scacchi, 2007)
28
allows team members to manage, track, and organize these files in a central
location.
b. Project workflow
This feature allows team members to collaborate electronically using Request for
information, change orders, field notes, correspondence, submittals, punch lists, daily
logs, and standard or customized forms.
c. Project directory
This feature stores general information (phone number, address, and e-mail) of project
team members in a central directory. Therefore, specific information for each project
participant can be easily retrieved when needed.
This feature allows team members to track who accessed files or down loaded a
particular document, as well as when the file was edited and uploaded to the system.
It also includes the use of digital signatures to identify and verify an individual before
entering the data or transmitting information.
e. Advanced searching
This feature allows team members to find documents or specific details within
documents through the entire log. This is the key feature that enables users to locate
documents more easily, compared with situations where file s are located in different
offices, on different server s, or scattered about on local computers.
This feature allows team members to share applications and documents concurrently
using the virtual whiteboard and to apply comments online. Theoretically, a
whiteboard and notes could also be saved and attached to other workflow forms such
as Request for information.
g. Online threaded discussion
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This feature is a communication tool similar to a newsgroup an d e-mail that allows a
‘‘threaded’’ discussion to take place online. It provides an open forum that displays a
sequential record of messages and responses about a particular topic. Team members
post questions, responses, and comments and have a permanent record of t he
discussions and decision process surrounding an issue. For a sensitive topic, it can
also be protected by a secured password.
The calendar feature allows team members to coordinate project events or meetings in
a centralized agenda. Team members can then copy events or meetings to their
standard software, such as Microsoft R Outlook and Eudora R . The schedule feature
allows team members to create project schedules on line or to convert project
schedules created by standard scheduling tools, i.e., Microsoft R Project, Primavera
P3e/c k, and Sure Trak to an online working schedule. A view of the bar char t and the
capability of modifying information a n d assigning resources can also be done using
the schedule feature. Alerts with direct links to the task in question are provided to
team members having overdue items. The schedule feature can also be integrated with
the calendar feature to quickly view milestones at a glance.
Project camera
This feature allows a project team to monitor const ruction sites remotely using web-
based cameras and transfer live photos of the job sites directly to their computers.
These photos can then be used to share progress, resolve issues and questions, and
minimize site visits.
i. File conversion
j. Wireless integration
This feature allows team members to use wireless devices such as pagers, mobile
phones, and smart phones to access the project information database. It may also
allow team members to input or edit project information via wireless devices and
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transfer this information back to the centralized servers. This feature is very well
suited for onsite personnel.
This feature allows a project team to copy the entire project database to a set of
compact discs after the completion of a construction project, creating a
comprehensive record of the entire project website with its associated databases and
transaction logs. A project team thus can have all project records necessary for any
disputes and the future operation and maintenance of the facility.
l. Financial service
It is normal in a construction project that a project team must secure financing before
the project starts. This feature provides lenders the ability to collaborate with
borrowers and suppliers in the sourcing, under- writing, closing servicing, analyzing,
and securing of project loans.
Bidding and procurement processes typically involve issuing RFQ s and responding
to RFI s. This feature streamlines bidding and procurement processes associated with
the purchases of equipment, specialized material s, and services. Team members can
issue RFQs, track all new and pending transactions, review and compare bids received
from material or service suppliers, and conduct e-procurement on line. It may also
facilitate transactions that require an exchange of information, such as design
documents, drawings, and specifications.
2.15.2 Potential benefits of PM-ASPs
PM-ASPs offer construction firms numerous advantages over the current inter
organizational information infrastructure by providing access to project data and
communication that is platform and application independent. All that is required is
Internet access and a We b browser. PM-A SPs are also location independent since
the systems can be accessed wherever there is Internet access and a Web browser.
Communication can be either synchronous or asynchronous, and individuals can
access project database anytime or multiple team members can collaborate in real-
31
time. In addition to enhancing communication and access to project information, PM-
ASPs also provide several potential advantages over in-ho use WPMS. Following are
some of the advantages repeatedly cited in literature.
a. Cost advantage
PM-ASP uses numerous centralized application servers and data warehouses instead
of concentrating power in the desktop computer as is currently done. In this case,
what is left on the user’s desktop is a stripped- down network computer that
communicates with applications and data servers via the network. Experts predict that
individuals and corporations will own very minimal software and will rent most of
what they need from Service Providers and other network operators. Therefore, PM-
ASPs potentially provide savings in time and resources compared to in-house
solutions, which can be costly, time consuming, and maintenance-intensive, and many
require a high degree of expertise by the system administrator and user to implement.
Although it is possible to develop in-house WPMS that would have almost the same
functionality as PM-ASPs, there are many arguments against it. McFarlan presented a
model that helps firms understand when it is advantageous to outsource IT service s,
linking the IT outsourcing decision to the strategic impact of the existing information
systems and the portfolio of applications the firm has underdevelopment. In highly
competitive, transaction intensive, knowledge based industries like banking and
insurance, both the information systems and the development portfolio play what
McFarlan categorizes as a strategic role. Outsourcing such a core process can lead to
loss of critical competitive skills and of control of important proprietary information.
On the other hand, in industries like large-scale process manufacturing or, in this case,
the construction industry, IT plays only a support role. It is much more of a
commodity and hence, although necessary, it is not central to the firm’s competitive
position. By this reasoning, many computing functions in the construction industry
are good candidates for outsourcing.
32
the majority of the construction industry, are able to take advantage of sophisticated
communications and computing software that they would otherwise be unable to
afford. Even larger firms in the construction industry may have difficulty justifying
the relatively high investment required to develop the functionality of WPMS. A
number of currently available PM-ASPs are actually spin-offs from design and
construction firms that saw an opportunity to take their in-house computing systems
to scale.
2.15 Summary
Two popular software available for PM functions in the industry, MS Project &
Primavera systems were introduced at the beginning of this chapter. The difference
between planning and scheduling were clearly described & the processes of planning,
scheduling, monitoring & controlling of project management process were explained.
The concepts of critical path, the importance of critical path analysis were discussed
along with the other techniques such as PERT chats, Network diagrams, Gantt charts
etc available for PM practices, describing advantages of some of them. Resource
histograms, assignment, resource leveling, non uniform resource requirements of a
project were taken in to consideration in the following section & usage of different
type of calendars were also taken in to consideration. Under the section Monitoring &
Controlling, cash flow forecasting, cost controlling, techniques such as Earn Value
analysis, Cash Flow histogram and Project Cost Curves (S-curves), cost histograms
etc were explained, in addition to the monitoring techniques such as bar chart
comparisons, progress reports etc.
Enterprise project management & its usage were summarized in the next section of
the report & introduction of Web-based project management systems, Project
Management System-Application Service Provider software were there to understand
the latest developments of the software industry for PM practices.
33
CHAPTER 3
3. METHODOLOGY OF STUDY
3.1 General
This chapter will contain detailed descriptions of methods followed to achieve the
main objectives of this research study. Methods followed for literature survey,
limitations of the study & narrow down of scope, identification of target group to
collect data, formulation of questionnaire format, details of pilot survey & the steps to
be followed for data collection were explained under this chapter 3.
3.2 Methodology
Literature Survey
The prevailing literature in the area of study was deeply analyzed at the beginning of
the study. Information available in past research papers, publications of software
facilities for project management, project reports etc were considered for reference. A
research undertaken on the same area by previous researches and a study conducted in
the area of information technology usage in construction industry by R.W.R Premasiri
in year 2000 were taken as references of this particular research.
Research reports, articles, publications, journals were also referred to collect the basic
information & data reference related to particular area. Internet & encyclopaedias
were also provided considerable contribution for this study. Interviews and
discussions with experts & experienced engineers in the construction industry at
initiation stage provided a sound understand & valuable collection of information, not
only in the area of study itself, but usage of software facility in the construction
industry in Sri Lanka as a whole, its usage, problems facing, expected developments
of software facility usage etc.
34
A questionnaire was formulated through the knowledge & information gained from
literature study & was used as the source of collecting particular information for the
study from selected organizations in the industry.
Filling questionnaire through interviews and discussions with various personnel,
especially the senior managers with civil engineering background in the construction
organisations were selected as the best method for this type of study for the following
reasons.
a) Interviews and discussions give greater control over the respondents and
provide opportunity to direct questions to obtain detailed explanations and
justifications for various opinion and decisions.
In addition, literature survey was carried out continuously for understanding the
background and to collect necessary information for the research.
Since the usage of information technology in construction industry covers a vast area,
the study was limited to the software which provides dedicated project management
facilities to the construction firms. The knowledge & exposure gained by author
during academic studies for master’s degree in construction project management &
the experience harnessed from the industry, working as an engineer in consultancy
firms for more than seven years, made the basis to limit the study for dedicated
project management software usage. The basic facilities provided by those software
for planning, scheduling, monitoring & controlling were taken in to account in this
study.
Construction projects can vary from simple house construction to mega projects such
as dams and other monsters; it was wise to limit the study to one category of
structures, namely the buildings to give the results a statistical value. Building
industry was selected considering the following,
35
c) Tough competition among local contractors, which leads to adopting of
improved management techniques.
Since the number of contractors registered in ICTAD was more than 275 firms &
considering the difficulty of reaching all the firms for this study, it was limited to take
100% of C1 firms & 50% of C2, C3 & C4 firms as the sample.
4. User Satisfaction
5. Difficulties faced
6. Benefits gained
36
The questionnaire used in the interviews consisted of four pages of questions, out of
that half page of instruction and information. The questions have to be answered in
the following ways,
1 1 1 1 1
37
Two similar sections were introduced for scheduling and for monitoring & control.
Section 04
User satisfaction of particular project management software uses by the
organizations, in the areas of time, cost & resource management were taken
into consideration in this section. A scale was introduced to indicate the level
of satisfaction & the factors affected for satisfaction or dissatisfaction were
also collected through separate questions.
Section 05
Difficulties faced by construction companies in using of project management
software were considered in section 05. The reasons identified through the
literature reviews, discussions & interviews were summarized & presented in
a one question, where ticking on alternative type question was included with
provision to answer in priority order, if there were more than one reason.
Section 06 & 07
Benefits gained through software usage for project management & future
development expectations were considered in these two chapters. The
knowledge gathered through literature reviews, discussions & interviews were
summarized & presented in a one question, where ticking on alternative type
questions were included with provision to answer in priority order, if there
were more than one reason.
In order to make sure that sufficient and necessary data is collected through
questionnaire survey, to fulfil the objectives of the study, a pilot survey was carried
out after discussions with some leading contractors & also with engineering
consultancy firms. A data collection using questionnaire & discussions with four
building contractors and two experts who are using computers for project
management, working in engineering consultancy firms were carried out prior to set
the questionnaire. The data collected through this pilot survey was made necessary
changes and improvements in the interview questionnaire before final launch.
38
3.6 Identification of Target Group
Only the companies registered under ICTAD in grades, C1, C2, C3 and C4 were
selected who engaged especially in building constructions in year 2010 as the target
group for the study & distribution was as follows;
24 C1
108 45 C2
C3
70 C4
Selected Sample
24 C1
23 C2
75
C3
35 C4
39
3.7 Data Collection
Interviews were held with the senior management staff members, project planners in
the construction firms to gather data & to fill up the questionnaire where, it was held
as face to face at the beginning of data collection & later reached the relevant
companies through emails & internet, after providing the background of the research
& the direction to fill the questionnaire, since reaching particular people in the
organizations were extremely difficult due to their busy schedules.
The questionnaire was formulated & conducted the interview with the concept of
putting the interviewee into a friendly discussion in order to get the genuine answers
without any distortions, as much as possible.
3.8 Summary
The processes starting from literature survey, limitation of the study were explained in
detail, in first two sections of this chapter. The study area was limited to dedicated
software usage for project management functions by building contractor firms in Sri
Lanka who has registered in ICTAD as grade C1, C2, C3 & C4. Developing the
questionnaire for data collection were explained with the considerations made while
formulating the format, the way of reaching target group, measures of getting the
accurate & correct answers/feedback from interviewee were, along with supporting
data & information. Selection of a sample to collect data, conducting pilot study as
guidance to the whole of the study were described in next two sections & finally the
process of collecting data for the study through literature & questionnaire were
described in chapter 3.
40
CHAPTER 4
4.1 General
The data collected through questionnaire survey conducted among the selected
building construction firms were analysed within the framework designed at the
beginning of the research. The data were analysed basically as raw & processed data
and the outcomes are presented in graphical, tabular & in descriptive formats.
Separate analysis of data & presentation has been done for each planning, scheduling
and monitoring & controlling activities in this chapter.
The analysis was basically executed in two distinct areas, where first part was to
present the raw data, which were collected through questionnaire survey, for all the
contracting firms & later was processed data where comparison of results between
the status of answers for specific questions within same organization & between the
different type of organizations.
Throughout the questionnaire survey, it was impliedly proved that all the construction
firms, under category C1, C2, C3, C4 are using software for its operation works &
managing projects, at least in any means, in Sri Lanka.
A summary of the sample selected for data collection & the achievement at the end
was tabulated & presented in the below table.
41
Registered Sample
Achievem
Collected
Contractor Grade in ICTAD
Target
#
Data
(ICTAD) in year
ent
%
2010
1 C1 24 24 13 54%
2 C2 45 23 11 48%
3 C3 70 35 13 37%
4 C4 148 75 14 19%
Table 4.1: Sample details of the study (building contractor firms)
The study & analysis was based on the assumption that the sample which have been
collected the required information will provide a general overview of the category of
construction companies it contains.
The one of very first questions asked from all the contractors was reasons of why they
use software for project management activities, in the organization. Most of the
respondents (68%) included the reasons in a priority order where rest were mentioned
only one reason. Considering the reason at its 1st priority position, the following table
was generated, where general overview of why the companies tends to use project
management software.
ICTAD Grading
Reason
C1 C2 C3 C4
Easy Administration works, Integration &
50% 54% 12% 49%
approach to repetitive tasks
Standardizing company formats 6% 9% 17%
Forced due to competitors, Project teams,
32% 9% 52% 17%
Consultants
To reduce cost 12% 24%
Desire to keep up to date with
18% 12% 17%
development
Table 4.2: Reasons for using software for Project Management
The majority of the companies have indicated that, easy administration works,
Integration & approach to repetitive tasks as the main reason of using software
systems for their project management activities. For C1 companies, the percentage
was 50, where for C2, C3 & C4 the percentages were as 54, 12, 49 respectively.
Between the figures found out, a clear difference has been appeared in C3 & rest of
42
the categories where for C3, they felt less regarding usage of software for project
management in easy administration, and considered a completely different view as
reason for usage which was Forced due to competitors, Project teams, Consultants.
One of the main reasons where these dedicated project management software have
been introduced was to make it easy of the complex administrative works of a project
and its content, as well as to address the repetitive processors / systems in an effective
way.
A clear reason, which will fall in the 2nd position of the list, is forced due to
competitors, project teams and consultants. Only the C3 companies responded with
52% rate that the reason for usage of software as mentioned above. C1 category
indicated this as the 2nd reason & even the C3 shows similar status, from the figures
obtained. The result here reflect one aspect of the Sri Lankan construction industry
which as the contractors, they do not use, or do not want to use the software facility
available for planning, control & monitoring works, where consultants & other
leading bodies already get use of those facilities and expect the same from the
contractors. Another cause is that the competitor’s usage of these facilities will affect
& challenge the status of a particular company, where they tent to use such a facility
or more advance facility to compete with rivals.
Reducing cost by using software was another reason indicated in the responds, which
will fall to third place of the list. Addressing to repetitive works in efficient way,
effective administration and some data base management will provide the basis for
cost reduction of organizations.
Next finding was the type of software mostly uses by the construction companies in
the industry, which was Microsoft Project for their planning, scheduling, monitor and
controlling works. 100% of C1 & C3 companies, 91% of C2 & 86% of C4 companies
43
indicated the usage of Microsoft Project as their main software for project
management.
Type of Software
Contractor Category MS Project
MS Project Primavera Any Other
Server
C1 92% 15%
C2 91% 9%
C3 100%
C4 86% 7% 14%
From the general perspectives of the dedicated software usage in the building
construction field in Sri Lanka, exploring the extent of usage of particular features of
these software, were taken in to account & the section start from this point will
present findings related to most common & main features relate to project
management software. Planning, scheduling, monitoring & controlling areas were
taken in to consideration in this study as the selected aspects of project management
activities. For each & every activity, whether the feature is being used within the
organization, the efficiency level of particular activity in term of satisfaction were
measures through the questionnaire survey & the results are summarizes as follows;
44
4.3 Planning
100%
90%
80%
70%
60%
50%
40%
30%
20%
10% C1- Software Usage
0% Trendline C1
For creation of work breaks down structures, OBS, to finding start, finish & durations,
filter of critical path of a project, these software are being used 100% by C1
contracting firms. Finding critical activities, floats of activities lies above 75% limit of
responses. When it comes to cash flow & its forecasting, the usage of project
management dedicated software were approximately 78% of rate of responds, in C1
category.
Assign baseline for the plan, which is an important feature of proper monitoring &
controlling of the progress, was done by 60% of the firms where balance 40%, follow
the plans during construction, without a baseline.
All the C1 category firms marked that they do more than one project, at a particular
time considered, but only 40% of firm use the facility available in software for
planning & managing multiple projects, effectively. Planning & maintaining resource
45
pool, allocating resources, checking of alternative methods & techniques were at a
level of below 40% of the respondents.
100%
90%
80%
70%
60%
50%
40%
30%
C1- Software Usage
20%
C2- software Usage
10%
Trendline C1
0%
Trendline C2
Figure 4.2 shows a comparison of usage of software for project management activities
between C1 & C2 firms. Apart from some difference in the areas of finding floating of
activities & resource planning/ allocation, other activity usage of C2 firms show a
similar pattern as in C1, with little descend than the percentage values of C1. Some
improved behaviour in resource planning & allocation of C2 firms than C1 is a
significant factor of the above outcomes.
Collectively, both C1 & C2 indicated that they hardly use the facilities for resource
planning, allocation, resource pools, and multiple project management available in
dedicated software packages, for their day to day project management aspects. These
results give a implied picture that most of the leading construction firms in the
industry use the initial features like, WBS, timing activities (start, duration, finish),
46
critical path etc of a software, but less likely to use of more detailed features like
resource activities, multiple project handing, resource pools etc.
100%
90%
80%
70%
60%
50%
The pattern of usage of software features in C3 category firms are almost similar to
C2 category except few places, one is there are no any use of Enterprise resource
pool, Assigning responsibilities. Initial features of creating work break down
structure, critical path analysis, calculation of dates, durations are commonly use in
C3 construction firms.
47
100%
90%
80%
70%
60%
50%
40%
30%
C1- Software Usage
20%
10% C4 software usage
0% Trendline C1
Trendline C4
C4 category software usage is comparatively lower than the rest of the firms subjected
to this study & considerable extent of project management work are undertaken by
manual or using ordinary software, for example MS office etc. Calculations of
durations / finish dates, creating work break downs are at the high percentage level
where as the figures are 100%, 79% respectively. Some firms use the facility to find
critical path & activities on it where the responded rates were 64% & 50%
respectively.
Resource planning, allocation for tasks were at a lowest level (21% & 14%
respectively) in C4 firms where they used to depend on handling the resource still in
the traditional way, manually & with assistance of ordinary office software. Assigning
base line for the plan was done only by 21% of the firms, subjected to study, where it
will create unfavourable condition for monitoring & controlling the program
throughout the project, using dedicated software.
48
Satisfaction in Planning, Independent of Software Usage:
C1 firms
100%
90%
80%
70%
60%
50%
40%
30%
20% C1- Software Usage
In the graph shown above presents the extent of usage of dedicated project
management software features by C1 construction companies versus the quality of
each activity in terms of their understanding within the organization, independent of
the software usage. Adding further, it explains the satisfaction of management of
particular activities which are executed by project staff for managing projects with or
without using the software facilities. For example, there may be a situation where a
company doing resource planning & allocating resources to different projects/
activities efficiently, using a manual method or just by using MS Xcel format.
C1 companies have responded in the survey that all the firms (100%) use the project
management software to find;
49
Create work breakdown structures
To find critical path
Whereas their satisfaction indicators for the above tasks were, 89%, 80% & 66%
respectively.
Development of scale:
Example: abstract from questionnaire
Activity Description Software Usage Quality of Output
(Not depends on Software usage)
1 1 1 1 1
If the response was 3 , then {(3+2+1)/ (1+2+3+4+5)}* 100 = 40%
1
Analysis of the data for C1 firms, above results provide the basis to facilitate one of
the main objective of the project to find how extent the software are being used & the
how efficient they get use of the facilities available. Even though the company uses
the facility available for above particular activities by 100%, still the management
responded that the outcome is much below than anticipated figures. Finding start,
finish dates & durations has been reach to a level close to 90% where the finding
critical path still lies below 67% line, which should be a higher figure where, this will
lead to success of the project, by managing the critical activities throughout the span,
by identifying the path & activities at initial stage.
Usage of facilities in cash flow forecasting was 77% where level of satisfaction shows
66% which will lead to a good satisfaction rate, as per the scale shown above. Assign
base line for planning technique was used by 62% of the C1 firms & the generated
satisfaction level was 55% in the scale where it will fall close to an “average” level of
50
satisfaction in the organizations. Assigning a base line for the project plan will be one
of the most important steps which should follow at the planning stage of a project,
where it will provide the basis for easy monitoring & controlling of the project versus
the initial plan.
Next, the following activities of planning, where the usage by C1 firms are below
50% level, are taken in to consideration.
To check alternative techniques & methods
Resource allocation for tasks
Resource planning & usage of enterprise resource pool
Assign responsibilities
Planning multiple projects
Even though the usage figures found through survey was below 50% of the above
activities, satisfaction figures were at a average, close the “good” of the scale being
used.
satisfaction
% usage of
Software
PM
# Activity Description
%
1 31% 43%
To check alternative techniques & methods
2 Resource allocation for tasks 38% 62%
3 Resource planning 23% 46%
4 Assign responsibilities 15% 62%
5 usage of enterprise resource pool 31% 52%
6 Planning multiple projects 38% 60%
Table 4.5: % usage of software features Vs level of satisfaction (C1)
This will reflect that there are some activities in project management where the firms
can achieve the targets or part of it, without using dedicated software facilities for
project management. For example, assigning responsibilities shows a 62%
satisfaction, almost the “good” level of satisfaction as per the scale of C1 firms,
without any software usage. They are able to manage the activity through manual
methods efficiently & planning multiple project activity is also providing the similar
behaviour.
51
In Sri Lankan context, depending on the scale of the project undertaken by the C1
firms, only limited features of the facilities are being used for their project
management aspects & rest of the activities are handled through manual or using
office software systems & some data management systems.
However, the possibility of increasing the level of satisfaction through software usage
has to be studied further & the data available up to this point will not support to
answer the question. The reasons why the firms use or not using software facilities in
construction project management will be discussed latter of this report.
C2 firms
100%
90%
80%
70%
60%
50%
40%
30%
C2- software Usage
20%
Level of Satisfaction
10%
Trendline Usage
0%
Trendline Satisfaction
100% usage of software to find start, finish, durations, creating WBS are indicated in
the responses received from C2 firms and usage of find critical path & activities are
also at a level above 70% line. This reflects that these firms got the usage of the
52
software facilities for above mentioned activities & get the benefit of it. Cash flow
forecasting were done more than 50% of firms where level of satisfaction will fall at
64% level in the scale & means “good” satisfaction.
Software usage of resource planning & allocation for tasks are at 36% usage level &
satisfaction of allocation of resources was 65% in the scale, where resource planning
was at 51%.
Usage of software for base lining the plan, checking for alternative methods, assign
responsibilities, enterprise resource pool & planning multiple projects were at a
minimum level where maximum figure goes only up to 18%. The satisfaction levels
for the above items were above 50% for all except the item checking alternative
methods where the level was 47%. These were level of satisfaction falls between
“average” and “good” region of the scale where such achievement was made with
minimum usage of dedicated software for project management.
C3 firms
100%
90%
80%
70%
60%
50%
40%
30%
C3 - Software Usage
20%
Level of satisfaction
10%
Trendline Usage
0%
Trendline Satisfaction
53
Creating work break down structures & finding start, end & duration were at 100%
usage level of C3 category firms as shown in the figure above. The qualities
(satisfaction) of same activities are above 70% which means that the facilities are
used effectively to achieve maximum outputs of particular activities. Finding critical
path & critical activities using software were at a 70% margin, where the satisfaction
level of both items were also in the range “good” with a 68% figure in the scale. Cash
flow forecasting usage was 54% since the level of satisfaction was also a closer value,
57% (good level of satisfaction).
Following activities were hardly implemented through the software by C3 firms
meanwhile the satisfaction levels of each shows a “good” level in the scale used.
Please see the table below;
% usage of PM
% satisfaction
Software
# Activity Description
1
Assign baseline for plan 23% 62%
2 23% 51%
To check alternative techniques & methods
3 31% 65%
Resource allocation for tasks
4 31% 48%
Resource planning
5
Assign responsibilities 0% 55%
6
Usage of enterprise resource pool 0% 52%
7 Planning multiple projects 15% 58%
Table 4.6: % usage of software features Vs level of satisfaction (C3)
54
C4 firms
100%
90%
80%
70%
60%
50%
40%
30%
20% C4 software usage
10%
Level of Satisfaction
0%
Trendline Usage
Tredline Satisfaction
The first parts of the x axis of the graph were at higher usage & satisfaction level, as
in the previous three categories & when more advance facilities were concerned,
usage of software were clearly descending but maintaining the satisfaction level in an
“average” or “good” level.
55
% usage of PM software Level of satisfaction (%)
# Activity Description
C1 C2 C3 C4 C1 C2 C3 C4
To find start/finish/durations 100 100 100 100 89 89 91 87
1 % % % % % % % %
Resource planning 23 36 31 21 46 51 48 63
10 % % % % % % % %
Assign responsibilities 15 18 62 62 55 57
11 % % 0% 0% % % % %
56
4.5 Scheduling
The facilities available in project management software for scheduling tasks were
studied in this section and the extent of usage & the satisfaction of each activity
irrespective of software usage were recorded in the questionnaire.
The results for C1, C2, C3 & C4 firms of extent of project management software
usage for scheduling tasks can be shown graphically as follows;
100%
90%
80%
70%
60%
50%
40% C1- Software Usage
C2- software Usage
30%
C3 - Software Usage
20%
C4 - Software usage
10%
Trendline C1
0%
trendline C2
Trendline C3
Trendline C4
Figure 4.9: Extent of Software usage for scheduling (C1, C2, C3 & C4)
All the firms use basic facility like linking tasks by 100% & gradually decrease with
other facilities, which are the activities; the planners are allowed to schedule their
programs in a detailed & deeply manner. Resource levelling tasks are used mostly by
C1, C2 & C3 firms where the extent of usage is below 50%, as in the above graph.
The feature linking between projects are mostly used by C2 firms where the
percentage of usage was 36% & the usage of C1 firms was 15%.
57
Satisfaction levels
C1 firms
100%
90%
80%
70%
60%
50%
40%
30%
20%
C1- Software Usage
10%
0% level of satisfaction
Trendline Usage
Trendline Satisfaction
All the C1 firms indicated over 50% satisfaction for all scheduling activities within
their organizations, independent of the software usage, i.e. their satisfaction may have
been achieved through usage of project management software or with only manual
systems.
Resource adjustments of critical path & Create calendars activities were managed
using software by C1 firms; the usages were 77% & 92% respectively where
satisfaction level showed 63% & 51%. Though the firms use software in maximum
for above two particular activities, satisfaction figures shows a lower value than
anticipated. This may be due to effects from external factors, beyond the control of
planning stage.
58
Linking between projects, Sharing resources in multiple projects, Adjusting different
working times for resources activities were hardly managed using software by C1
firms, but with over 50% satisfaction of activities. This condition indicate that there
are some activities which can achieve certain level of satisfaction (above 50%) using
manual or traditional methods, without using project management software.
C2afirms
100%
90%
80%
70%
60%
50%
40%
30%
20% C2- software Usage
10%
0% Level of Satisfaction
Trendline Usage
Trendline Satisfaction
59
C3 firms
100%
90%
80%
70%
60%
50%
40%
30%
20% C3 - Software Usage
10%
Level of satisfaction
0%
Trendline C3
Trendline Satisfaction
60
C4 firms
100%
90%
80%
70%
60%
50%
40%
30%
20% C4 software usage
10% Level of Satisfaction
0%
Trendline C4
Trendline Satisfaction
Only the activities linking tasks and resource adjustment of critical path showed a
usage above 50% & all other activities were below 50% for C4 firms. Very less usage
of software for sharing resources in multiple projects, linking between projects,
adjusting different working times for resources activities by C4 firms, but with nearly
50% satisfaction level of each activity.
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4.6 Monitoring & Controlling
C1 and C2 firms
100%
90%
80%
70%
60%
50%
40%
30%
20%
C1- Software Usage
10%
0% C2- software Usage
Trendline C1
Trendline C2
Figure 4.14: Extent of Software usage for Monitoring & Controlling (C1 & C2)
All the C1 & C2 firms used to get the progress figures of their projects through
entering the percentage values of work items completed for their monitoring &
controlling process. More accurate version to get the extent of completion, 46% of C1
& 27% of C2 companies use entering quantity of work done to the program to get
overall completion of the project. One of the most important activities to track the
project throughout its entire execution, tracking using base lines, that is assigning a
baseline during planning stage & take it as reference to monitor the progress, was
only applied by 54% of C1 & 64% of C2 firms.
Usage of software for cash flow monitoring & controlling, measuring performance
using S-curve were below 38% for C1 firms & below 27% for C2 firms. Usage of
earn value techniques to measure performance were 31% for C1 firms & 18% for C2
firms. This was comparatively a lower usage, as the C1 & C2 are the leading
categories in the industry.
62
The generating reports through project management software were as follows for both
firms;
C3& C4 firms
100%
90%
80%
70%
60%
50%
40%
30%
20% C3 - Software Usage
10% C4 software usage
0%
Trendline C3
Trendline C4
Figure 4.15: Extent of Software usage for Monitoring & Controlling (C3 & C4)
The usage figures of C3 & C4 firms were at a minimum level as shown in the above
graph. Except the item monitor progress using percentate complete, all the activities
were below 50% level & most of them were even below 25% usage level.
The usage & satisfaction figures calculated through this research for all four
categories of firms are tabulated below:
63
% usage of PM software Level of satisfaction (%)
# Activity Description
C1 C2 C3 C4 C1 C2 C3 C4
Monitor Progress: using % 100 100 100 100 62 71 71 70
1 complete % % % % % % % %
Monitor Progress: using qty 46 27 23 57 51 54 46
2 of work completed % % % 7% % % % %
54 64 46 29 63 67 65 51
Tracking using base lines
3 % % % % % % % %
15 38 33 23 27
Delay Analysis
4 % 0% 8% 0% % % % %
Measure performance using 31 18 23 62 35 58 37
5 Earn Value (EV) % % % 7% % % % %
Measuring performance 31 27 15 60 35 49 26
6 using S-curve % % % 0% % % % %
Cash flow monitoring & 38 27 23 65 60 57 54
7 controlling % % % 0% % % % %
Cost Histograms 31 49 33 31 23
8 % 9% 8% 0% % % % %
46 36 15 63 53 48 26
Resource Re-scheduling
9 % % % 0% % % % %
31 36 15 52 44 46 43
Generating reports on cost
10 % % % 0% % % % %
54 27 23 21 63 62 55 61
Generating reports of time
11 % % % % % % % %
Generating reports on 23 42 40 31 23
12 resources % 9% 0% 0% % % % %
Sharing project data with 26 27 20 20
13 other applications 8% 0% 0% 0% % % % %
Importing & exporting 28 20 22 20
14 information 8% 0% 0% 0% % % % %
64
100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0%
100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0%
C2 firms
C1 firms
65
Generating reports of time Generating reports of time
Generating reports on… Generating reports on…
Sharing project data… Sharing project data with…
Importing & exporting… Importing & exporting…
Trendline Usage
Trendline Usage
level of satisfaction
Level of Satisfaction
Trendline Satisfaction
Trendline Satisfaction
Figure 4.16: Extent of Software usage for Monitoring & Controlling Vs level of
Figure 4.17: Extent of Software usage for Monitoring & Controlling Vs level of
100%
100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0%
0%
C4 firms
C3 firms
66
Generating reports on… Generating reports of time
Sharing project data with… Generating reports on…
Importing & exporting…
Sharing project data with…
Importing & exporting…
satisfaction)
Usage)
Linear (level of
satisfaction)
C4 software usage
level of satisfaction
Linear (Level of
Level of satisfaction
C3 - Software Usage
Figure 4.19: Extent of Software usage for Monitoring and Controlling Vs level of
4.7 User Satisfaction of Project Management Software Features
Time Management:
C1 92% 8%
C2 82% 18%
C3 92% 8%
C4 86% 14%
Table 4.9: Satisfaction with time management facilities
Further, the reasons for the satisfaction or non- satisfaction were taken in to
consideration. Following the information & experienced gained in pilot survey &
literature review, a list of reasons were included in the questionnaire, where a
provision was also made to add if any other reason existed in firms, apart from the
reasons mentioned.
The reasons mentioned for satisfaction of time management facilities are shown
below;
No of respondents
Contribution factor %
C1 C2 C3 C4
67
100%
90%
80%
70%
60% C1
50%
C2
40%
30% C3
20% C4
10%
0%
Straight forward Easy & Quick Technical support Flexibility to various
application execution available requirments
When consider all the construction firms subjected to this study, 57% (refer table
4.10) of sample has selected Easy and Quick execution as the 1st reason for
satisfaction of time management facilities available. Straight forward application has
been selected as 2nd most common reason for satisfaction, with 27% overall respond
rate. C1, C2 & C3 firm’s behaviour was also the same as described above. Technical
support available & straight forward applications were the main reasons for their
satisfaction on time management facilities of dedicated project management software.
One of the C2 firms had mentioned that, flexibility to various requirements of the
organization in time management aspects of a project as the main reason for their
satisfaction & mentioned it at the provision made to specify any other reasons than the
options available in the questionnaire.
Among the firms, responded as they do not satisfy with the time management
facilities available in software, 83% of firms indicated that, lack of experienced
people with particular software as the main reason for their non-satisfaction. The rest
of the firm’s position was, the return from software usage was comparatively low &
as a percentage, number of companies was 17% of non-satisfied firms.
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All the C1, C2 and C3 firms and one C4 firm indicated the lack of experienced people
as main reason while only one C4 firm said that comparably low return from software
usage as their cause for non- satisfaction.
Some specific reasons were included in the questionnaire, which were abstracted &
summarized from literature review, where it provided the interviewee to answer easily
regarding the difficulties faced by their organization in using project management
software. The responses are summarised in below table which include the number of
responses by each category & overall percentage of each factor, considering all the
firms subjected to this study. In addition, a graphical view presents the individual
percentages of all four firms separately, of their difficulties faced, while using
software.
No of companies responded
Contribution factor %
C1 C2 C3 C4
High cost 2 2 2 1 14%
Non availability of trained staff 6 5 5 7 45%
Lack of interest among top
management 3 2 6 5 31%
Lack of interest among the staff
involving in PM activities 1 1 0 1 6%
Fear of change to new systems
from staff of long tenure 1 1 0 0 4%
Table 4.11: Responses for difficulties faced by contractor firms
Considering all the firms subjected to this study, 39% of firms had mentioned non
availability of trained staff as the main difficulty faced while using software for
project management. Lack of interest among top management had become as the 2nd
most influencing factor for contracting firms.
69
100%
90%
80%
70%
60%
50% C1
40% C2
C3
30%
C4
20%
10%
0%
High cost Non availability Lack of interest Lack of interest Fear of change
of trained staff among top among the to new systems
management staff involving from staff of
in PM activities long tenure
Non availability of trained staff was marked as the difficulty faced by C1 firms to 1st
place & lack of interest among top management has become the 2nd reason. Lack of
interest among the staff involving in project management activities & higher cost
were the next most influencing factor for C1 firms. A similar responses have been
made by C2 & C4 firms as C1 and only C3 firms has mentioned lack of interest
among top management as the most critical factor in their software usage.
The results obtained through questionnaire survey were summarised & shown in the
below table & graph. The table presents the number of responses & percentage figure
for each reason, considering all the firms subjected to the study, irrespective of type of
firm. The graph presents the individual respond rates of each type of firm, for the
reasons mentioned as benefits gained through project management software usage.
70
No of companies responded
Contribution factor %
C1 C2 C3 C4
Easy for management &
9 9 6 10 67%
administration works
Increase of profit margins 1 0 2 0 6%
100%
90%
80%
70%
60%
50% C1
40% C2
30%
C3
20%
C4
10%
0%
Easy for Increase of profit Generating Quality Increase company
management & margins reports reputation (image)
administration
works
All the firms have responded that easy for management & administration works at
first place in benefits gained list, with overall percentage of 67%. This condition was
similar for each individual firm as shown in the above graph. Generating quality
reports has become to 2nd place in the list with 22% respond rate.
In section 07 of the questionnaire, it was asked by all firms whether they have any
plan of improving the project management software usage in the organization in
future. The responses received are tabulated below. Only 33% of firms replied that
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they have a plan for future improvement where rest of firms (67%) did not have any
plan for future development in software usage for project management activities.
Majority of firms have responded that they will trained their staff to make them
capable of handling the software, to meet their business requirements in project
management activities & it was 65% as a percentage. Introducing latest versions has
become the 2nd most responded action as the future plan for development and as a
figure, 28%.
No of companies responded
Method to be adopted %
C1 C2 C3 C4
Introducing latest versions 1 1 1 2.75 28%
Introducing new software
packages 1 0 0 0 5%
Recruiting trained people 0 0 0 0.5 2%
Training relevant staff 3.5 4 4 2 65%
Introducing company policies 0 0 0 0 0%
Table 4.14: Future development in software usage for project management: methods
72
100%
90%
80%
70%
60%
50% C1
40% C2
30% C3
20%
C4
10%
0%
Introducing Introducing Recruiting Training Introducing
latest versions new software trained people relevant staff company
packages policies
4.11 Summary
The building contractor firms use the initial planning techniques, such as creating
work breakdown structure, find start, finish dates & durations etc of a project & use
approximately by all firms, as per the results obtained through questionnaire survey.
The usage of software to find critical path, critical activities, assigning base line for
planning were not fully used & the usage was around 50% of the firms, subjected to
study. Construction firms subjected to study have shown very less concern for
monitoring & controlling functions available in the project management software.
Only the firms C1 & C2 showed considerable usage of software facility for report
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generation, cash flow monitoring & controlling, measuring performance using S curve
etc, rest of firms are with less usage of facilities available in software.
Non availability of trained staff has become the most significant reason, appeared as
difficulty faced by the construction firms of usage of dedicated project management
software. Only around 35% of construction firms in the industry have a plan to
develop their software systems in future to facilitate the project management
requirements. The rest, 65% does not have any plan of improving their systems. Easy
management & administration activities and generating quality reports through the
software within short period of time has become most attractive reasons under
benefits gained through software usage by contractor firms.
The graphical views in each stage show a pattern of decreasing the usage of software
facilities by firms, along with the complexity of management activities.
74
CHAPTER 5
5.2 Conclusions
a) The first objective of the research was to find out to what extent the project
management software are being used in the construction industry for their
planning, scheduling and monitoring / controlling activities. The building
contractor firms use the initial planning techniques, such as creating work
breakdown structure, to find start, finish dates & durations etc of a project &
use approximately by all firms, as per the results obtained through
questionnaire survey. The usage of software to find critical path, critical
activities, assigning base line for planning were not fully used & the usage was
around 50% of the firms, subjected to study. Usage for cash forecasting,
resource planning & allocation, planning multiple projects were at a minimum
level, of the industry. Only fractions, approximately less than half of the
facilities available in PM software for planning activities were utilized by
construction companies in their planning of projects.
b) Scheduling activities were also used by firms fully in the area of linking tasks,
but gradually decreases with the density of the activities. Creating calendars
for project, resource calendars were used average 70% by C1 & C2 firms, but
very less use by other type of firms in the industry. Utilization of software for
resource levelling, sharing resources in multiple projects, adjusting different
working times for resources was below 50% for all firms in the construction
industry & even below 20% for C3 & C4 category firms. Even though most of
the firms handling several projects simultaneously, the facility linking between
projects were hardly used by the construction firms & limited only to C1 & C2
category.
c) Construction firms subjected to study have shown very less concern for
monitoring & controlling functions available in the project management
software. Only the firms C1 & C2 showed considerable usage of software
facility for report generation, cash flow monitoring & controlling, measuring
performance using S curve etc, rest of firms are with less usage of facilities
available in software. Still some traditional methods, using ordinary software
75
are being used in the industry to manage such monitoring & controlling tasks.
One of the reason for less usage of these monitor & control facilities is since
the construction firms do only the basic activities in planning & scheduling
stages & avoid utilizing middle & more detailed parts of the software features
where it will lead to lack of information available in latter stages for a proper
monitoring & controlling mechanism.
d) Through the satisfaction indicators, a pattern can be identified that, high level
of satisfaction has been reached by all firms when the software usage for that
particular area was high. Even without software, medium level (around 60%
satisfaction in the scale used) can be achieved for most of the activities, but
possibility is there to increase the efficiency of activities through software
usage & as a result, to gain an increase in profit.
e) The usage of software for cash forecasting/ controlling, resource planning &
controlling are poor in Sri Lankan building construction industry. Lack of
experienced staff & less interest from higher management may be the reasons
for this situation, but this will lead to unnecessary losses in both financial &
other resources, especially of a construction project due to this matter.
f) The building construction firms are using project management software for
their projects mainly since the facility provide easy administration of works,
integration & approach to repetitive tasks. One important finding of this study
was the contractor firms have mentioned that, force due to competitors,
project teams & consultants as the second most important factor for usage of
project management software.
g) Non availability of trained staff has become the most significant reason,
appeared as difficulty faced by the construction firms of usage of dedicated
project management software. Though most of their staff has some basic
knowledge over the software, going deeper & handling latest facilities are not
possible. Lack of interest among top management of utilizing latest project
management software within their companies has become the second most
responded reason, as the difficulties faced.
76
reasons under benefits gained through software usage by contractor firms.
There were very few responds to the increase profit margins & increase
company reputation through the usage of dedicated software for project
management.
i) Only around 35% of construction firms in the industry have a plan to develop
their software systems in future to facilitate the project management activities.
The rest, 65% does not have any plan of improving their systems. Among the
firms who have a plan to develop the usage of project management software,
getting trained the staff has become the 1 st place activity, mentioned by firms
as future development area. As a percentage, it was 65% of the companies
who have a future plan to develop their software usage. A 28% of firms in a
place to introduce latest/ newer versions of software to their firms, to enhance
the productivity & efficiency.
5.3 Recommendations
The following recommendations are based on the results obtained through the study
conducted among building contractors in the industry:
a) The contractor firms should conduct a self study to identify the areas where
they can increase the usage of software & take measures to utilize the software
more than what they do at the moment.
b) Since the “lack of interest among top management” has became the second
most responded reason for difficulties faced by firms, of using PM software an
awareness programs can be arranged to senior staff of firms where the higher
management of firms have the opportunity to understand the importance of
usage of dedicated software for project management, what are the benefits
they can gain, how the loses can be minimized through managing activities
using software.
77
relevant engineering institutions where they also have certain responsibilities
to train the people to cover up this gap in the industry.
d) The contractor firms should concern more to utilize the software facilities
available over the cash & resource management areas while managing
projects. Currently the attitude of firms is to use only the basic features of
software, just to initiate the plans & schedules, but not to create a plan which
will enable proper monitoring & controlling base in the execution stage. The
recommendations made in previous section (C) will provide the basis to
initiate the expanding since the relevant staff will get training.
a) A general overview of the concern objectives were resulted from the study
since it was spread among large number of contractor firms, several areas of
PM activities in planning, scheduling and monitoring & controlling.
Conducting a study in future with case study basis will provide the researcher
to study the results obtained from this research further & investigate in depth
and with meticulous attention to each and every fact.
b) Narrow down the study area only to Cost & Resource aspects of project
management will facilitate future researcher to investigate further on the usage
& areas of usage to be improved in construction industry since one of the
conclude of this study was that the usage of PM software for cost & resource
managing in the industry is comparatively low.
c) Similar study conduct among engineering consultancy firms will provide the
basis to compare where the consultants & contractors in the industry stands in
dedicated project management software usage & can seek a solution to fill the
industry shortage of trained staff through the involvement of experts in
consultancy firms (conducting training/ workshops etc).
78
REFERENCES
Clarke, A. (1999). A Practical use of key success factors to improve the effectiveness
of Project management. International Journal of Project Management , Vol.17 (No.3),
139-145.
ICTAD. (2008). Sri Lanka Country Report-Asia Construct Conference, Tokyo, Japan.
Johnson, C. C. (2007). Microsoft Office Project 2007 Step by Step. New Delhi: PHI
Lerning Private Limited.
79
APPENDIXES
QUESTIONNAIRE
(Survey to find out how effective the usage of Project Management Software in Sri Lankan
Building Construction Industry)
Notes:
1. It will take only avg. 20 minutes time to fill up this questionnaire.
2. The questionnaire have to be answered in the following ways,
(1) Yes / No (ticking or underline)
(2) Ticking on alternatives
(3) Word answers
(4) Answers to be marked on a scale
3. Please add remarks where useful to expand answers.
4. Information obtained in this questionnaire will be used collectively with other responds.
5. This questionnaire is consisting of mainly seven sections, 18 nos questions to be answered.
Section 01
General Organizational Information
Name of Organization (not compulsory) :
1) ICTAD grading:
Section 02
Software Usage for Project Management: General (PM software, office packages, data
bases etc...)
5) How long the company has been using software for Project management?
80
0-5 years 6-10 years 11-15 years 16-20 years 20<
years
6) Reasons for using software for Project Management (if more than one, put them in
priority order)
Section 03
7) Usage of Dedicated Project Management Software
MS Project
MS Project Server
Primavera Project Planner
Other (PM software, database,
Office packages etc)
Scale to be used:
1 : none 2 : poor 3 : average 4 : good 5:
Excellent
1 1 1 1 1
10) Monitoring & Controlling
Monitor progress: using % complete Yes / No 1 2 3 4 5
Monitor progress: using qty of
1 1 1 1 1
work completed Yes / No 1 2 3 4 5
1 1 1 1 1
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Section 4
User Satisfaction
11) Satisfaction level for Time management facility available in Project Management
software:
Scale: 1 2 3 4 5
13) If Not satisfied, Contributing factors (if more than one, put them in priority order)
Comparably low return from software usage
Available software does not fulfil the needs
Insufficient time for planning
Lack of experienced people with software
Other (please specify)
14) Satisfaction level for Cost management facility available in Project Management
software:
Scale: 1 2 3 4 5
1 1 1 1 1
Section 05
Difficulties faced
16) What are the difficulties faced by Organization of using PM Software? (if more than
one, put them in priority order)
High cost
Non availability of trained staff
Lack of interest among top management
Lack of interest among the staff involving in PM activities
Fear of change to new systems from staff of long tenure
83
Section 06
Benefits gained
17) What are the benefits gained using PM software? (if more than one, put them in
priority order)
Section 07
Future Development
18) Any plan of expanding Project Management Software usage within the organization?
Yes No
19) If yes, how? (If more than one, put them in priority order)
84