Construction Technology and Management

Permanent URI for this collection

http://etd.aau.edu.et/handle/12345678/134

Browse

Browsing Construction Technology and Management by Subject "Activity defi-nition"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Project Construction Operation Planning and Controlling of Building Projects A Case Study on Crafts Construction PLC
    (Addis Ababa University, 2015-10) Arsema Hagos; Abebe Dinku
    Almost every study finds that failures are caused primarily by poor project man-agement, especially the failure to plan properly, (P. Lewis, 2007) My research focuses, how we can prepare detailed good, realistic & applicable good plan. Once the detailed plan is developed the next step is how we can control resource productivity, cost & time by identifying the cause for resource productivi-ty variance, direct cost variance and time variance. Finally applying corrective measures to minimize the wastage of input resource and improve the performance by applying planning and controlling which are the management processes with case study on crafts construction plc. The research findings indicated that financial progress report of the organization shows to date work executed of the projects is below 50%of the contract amount until the completion time is elapsed. The result more over indicates that most of the projects are unable to finish the project on its completion time. According to the result of the research, most of the surveyed projects of the organ-ization are an able to obtain the profit they anticipate from their project plans. The anticipated planned profit from the surveyed project is 60% without considering the overheads of the project & head office, where as the actual profit is 30%. The major contributing factors, in order of their influence are in adequate planning, lack of cost controlling systems, in accuracy of quantity estimation, in accuracy of duration estimation , in accuracy of resource estimation during planning stage and unable to revise the plan . Lack of recorded daily productivity output of past experience of the organization and the absence of summarized, revised, of standard of these daily productivity output are the major errors in estimating physical resources (labour, material equipment & time) and their direct costs. The result revealed the organization cost controlling process is not integrated with the budget prepared for the project budgetary control is not popular. The process focuses mainly on revealing the amount of profit and fails to indicate identify ac-tivities or operations. In addition to this the organization uses MS-project software only for scheduling of activities without resource assignment in each activity. The organization does not use software‘s for planning and controlling. During direct cost controlling, the organization identifies the direct cost variance of (labour, material & equipment), however it does not go deep through the cause of the direct cost variances like for Labour (productivity variance & rate variance), for material (usage variance and price variance) and for equipment (rent/ pur-chase price variance and productivity variance). If you have no plan, by definition, you have no control, because it is your plan that tells you where you are supposed to be in the first place. Furthermore, if you don‘t know where you are you can‘t have control. This knowledge comes from your in-formation system, (P. Lewis, 2011).