Major Factors that Affect Project Completion Time
For proper planning and good project management, the following three important factors have to be considered: time, cost and quality. Hughes and Williams (1991), considering these three factors just to reach the client’s aim of going into the project, these factors are the three point of a triangle interrelated failing to include one of these factor consequently have influence on the other two factors.
To affirm this Lansley (1993) agreed powerfully that the study of the behavioral part of management in project in attempting to solve the problems facing the construction industry, focusing on the issue of the ‘human factor’ involved in construction projects that requires quick attention.Rwelamila& Hall (1995) also agreed that these alighted factors ‘time, cost and quality’ affect project success were they are adequately used in managing quality and human activities in project site.
Time
In today’s competitive business world, time management is a key factor to success. The organizations are required to reduce the time they spend responding to customers and developing new products. “Less time means faster response to customers ‘and market conditions changes Hilton et al., (2008) i.e. feasibility of operational efficiency.
Paying attention to the three dimensions of time including time of new product and service development, time of response to customer and time of product delivery may cause activities to have timely measurable goals and it may improve responses and determine and remove reasons for poor quality There is a close relationship between time of response to customers and product delivery and customers ‘satisfaction. It is generally realized that when project duration is compressed, the project will call for an increase in labor and more productive equipment and require more demanding procurement and construction management and then the cost will increase”.
“To solve the problems of optimizing investment projects, one should consider delivery time to customer that is the result of time of doing each level of project in turn. On the one hand, very short time may have negative effect on the quality and cost and on the other hand, very long time may also have negative effect on the cost and often doesn’t have much impact on quality. However, both cases, especially long time, may increase the risk of project. In the initial assessment of the project time is supposed to be the most important the present value and other time and any changes in the time may turn the investment project into a non-economic one. During various stages of project implementation, time is considered based on shift work. In the case used in this study, each shift work is known as a day. If a day is consisted of a morning and a night shift, the work time as two days, but if there is only one morning shift, time is regarded as one day; or if there is only one night shift, the time is also known as one day”.
Cost
Cost is traditionally known as price of or doing the services by which cost various approaches and in new paradigm; management accounting deploys knowledge of cost management. “There is a direct relationship between cost and organization efficiency. From this perspective efficiency means the ability to convert input to the output with the lowest cost (Hilton etal., 2008) .Cost management is an approach used to realize decisions made for planning controlling and developing competitive strategies and it is noteworthy to say that making balance between this factor and other dimensions of competition such as quality and time is required to apply management on it aiming to help maximize the profits and value creation of the organization in current activities and future (Rahnamayroodposhti, 2008).
Project costs include direct and indirect (overhead) costs of project. After revenue, cost is one of the main characteristics of any business. All organizations keeping and improving their quality, are seeking to reduce their cost to finally be able to optimize wealth of shareholders and to create value”
The cost of a given project is usually computed by enumerating its features. You can’t reduce the cost without sacrificing features or deadlines. You can’t increase features without incurring extra costs. Everyone likes to control the cost factor because it is the easiest one to see the effect on bottom-line profitability.
“Cost management is found to be a major tool to achieve strategic goals. Cost is the result of resource consumption and actually is regarded as those resources made sacrifice to gain value. To save resources and costs in the course of this process, it is necessary to remove those activities without value added and to strengthen and combine parallel activities seeking to create value. It should also be noted that those activities required to improve and complete the quality of services must beaded to the organization activities. In this study, the concept of cost is considered as both direct and indirect costs”.
Quality
“Improving quality is considered by many to be the best way to enhance customer satisfaction, to reduce manufacturing costs and to increase productivity. Any serious attempt to improve quality must take into account the costs associated with achieving quality, since nowadays it does not suffice to meet customer requirements, it must be done at the lowest possible cost as well. This can only happen by reducing the costs needed to achieve quality and the reduction of these costs is only possible if they are identified and measured (Schiffauerova & Thomson, 2006). Quality is said to be an ambiguous term understood differently by different people.
It is sometimes defined as activities designed to improve organization and its services and also known as achieving pre-defined standards. It is also believed that quality is the characteristics of a product or service that beacon its ability to affect customers’ buying decisions and satisfaction which is a determining factor influencing activities of entities (Rahnamayroodposhti & Fraydoon , 2008). It identifies four divisions of quality costs:
- prevention;
- Appraisal;
- Internal failure;
- External failure.
These divisions have been well known in the quality and accounting professions and have been included in worldwide.“However, in many industries quality costs are not evaluated explicitly but are simply calculated with over heads. In order to increase quality of any company account must be taken concerning cost influencing quality since the aim of uninterrupted improvement schedule is not just to attain client needs/customer requirement, but also to achieve it at a low cost. There is no general agreement on a single broad definition of quality costs. Cost of quality is usually understood as the sum of conformance plus non-conformance costs, where cost of conformance is the price paid for prevention of poor quality”.
“Quality is the degree of excellence or superiority is a combination of attributes, properties, or characteristics that give each commodity value in terms of its intended use or may mean beauty, function and performance. If a product fulfills the customer’s expectations, the customer will be pleased and consider that the product is of acceptable or even high quality. If his or her expectations are not fulfilled, the customer will consider that the product is of low quality. This means that the quality of a product may be defined as “its ability to fulfill the customer’s needs and expectations”. Quality needs to be defined firstly in terms of parameters or characteristics, which vary from product to product. For example, for a mechanical or electronic product these are performance, reliability, safety and appearance. For pharmaceutical products, parameters such as physical and chemical characteristics, medicinal effect, toxicity, taste and shelf life may be important. For a food product they will include taste, nutritional properties, texture and shelf life and UNIDOU (2006), and for investment plans and construction projects it should be defined”.
Customers seek for maximum quality and if they able to pay its price then it would tell that quality is free. Because of tradeoff between cost and quality to maximize the profit, this theory is not true everlasting (Hilton et al., 2008) “Sometimes quality is more important even though it costs more and takes more time. It was mentioned that the Project Quality Management includes the processes to ensure that the project will satisfy the needs for which it was undertaken (Refaatet al., 2010).
To solve the problems of optimizing investment projects, one should consider delivery time to customer that is the result of time of doing each level of project intern. On the one hand, very short time may have negative effect on the quality and cost and on the other hand, very long time may also have negative effect on the cost and often doesn’t have much impact on quality”.
“However, both cases, especially long time, may increase the risk of project. In the initial assessment of the project, time is supposed to be the most important factor calculating the present value and other time-based indicators and any changes in the time may turn the investment project into a non-economic one. During various stages of project implementation, time is considered based on shift work. In the case used in this study, each shift work is known as a day.”
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