GIẢI PHÁP NÂNG CAO HIỆU QUẢ THỰC HIỆN dự án tại CÔNG TY TNHH một THÀNH VIÊN TRƯỜNG THÀNHE

SOLUTION TO IMPROVING THE EFFECTIVENESS OF
PROJECT IMPLEMENTATION AT TRUONG THANH
ONE MEMBER LIMITED LIABILITY COMPANY

Table of Contents
ACKNOWLEDGEMENT.........................................................................................................................3
LIST OF TABLES & FIGURES...............................................................................................................5
INTRODUCTION......................................................................................................................................1
CHAPTER 1: BACKGROUND OF PROJECT’S EFFECTIVENESS IN BUSINESS........................7
1.1.

Project management, project progress and project’s effectiveness.................................................7

1.1.1.

Definitions, features related to Project and Project Management...........................................7

1.1.2.

Project’s procedure and effectiveness....................................................................................12

1.2.

Criteria to evaluate the effectiveness of project execution in a company.....................................14

1.2.1.

Profit – cost of a project (P/C)................................................................................................14

1.2.2.

Effectiveness of work and productivity.................................................................................17

1.2.3.

Evaluation of project quality..................................................................................................19

1.2.4.

Evaluation of project implementation progress.....................................................................20

1.3.

Methods of evaluating the effectiveness of a project.....................................................................22

1.3.1.

Evaluating the effectiveness of a project by quantitative methodology................................22

1.3.2.

Evaluating the effectiveness of a project by qualitative method...........................................23

CHAPTER 2: CURRENT SITUATION OF EFFECTIVENESS IN PROJECT IMPLEMENTING
AT TRUONG THANH ONE MEMBER LIMITED LIABILITY COMPANY...................................27
2.1.

Overview about Truong Thanh Company.................................................................................27

1

2.1.1.

General introduction about the company..........................................................................27

2.1.2.

Establishment history of the company:..................................................................................27

2.1.3.

Organization chart of company:.............................................................................................29

2.1.4.

Capacity and experience to implement construction project.................................................30

2.1.5.

Particular projects of Truong Thanh Company...............................................................31

2.2.1.

Results of deployed projects................................................................................................32

2.2.2.

Analyze quality of the project................................................................................................36

2.2.3.

Analyze the result of project implementation progress.........................................................37

2.2.4.
Current situation about effectiveness of project implementation via making survey with
experts and employees............................................................................................................................38
2.3.
Conclusion about effectiveness of project implementation in Truong Thanh One member
Limited Liability Company.....................................................................................................................40
2.3.1.

The strengths.........................................................................................................................40

2.3.2.

The restrictions and weaknesses.........................................................................................41

2.3.3.

Reasons for the restrictions and weaknesses.....................................................................41

CHAPTER 3: SOLUTION FOR IMPROVING THE EFFECTIVENESS OF PROJECT
EXECUTION AT TRUONG THANH COMPANY...............................................................................43
3.1.

Reform the organizing procedure and controlling the project’s progress.....................................43

3.1.1.

Diagram:.................................................................................................................................43

3.1.2.

Explanation of the diagram....................................................................................................45

3.1.3.

Changes comparing to the current procedure........................................................................47

3.2.

Enhancing the human resources management and increase the productivity...............................48

3.3.

Improve the cost controlling effectiveness.....................................................................................52

3.3.1.

Control the material cost.........................................................................................................52

3.3.2.

Table of allocating the material cost of project......................................................................54

3.4.

Complete the project’s quality management..................................................................................57

CONCLUSION.........................................................................................................................................60

REFERENCES............................................................................................................................................i
APPENDIX................................................................................................................................................iii

2


LIST OF TABLES & FIGURES
No.
1) 1
2) 2
3) 3

Names
Table 1.1
Table 1.2
Table 1.3

4) 4

Table 2.1

5) 5
6) 6
7) 7

Table 2.2
Table 2.3
Table 2.4

8) 8

Table 2.5

9) 9

Table 2.6

10

Table 3.1

11

Table 3.2

12

Table 3.3

13
14
15
16
17
18
19
20
21

Table 3.4

Table 3.5
Table 3.6
Table 3.7
Figure 1
Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4

Content
List of construction cost and controlling method
Table of quality evaluation summary
List of Experts interviewing
Experience year to implement construction project – Truong Thanh
Company
Qualification statistics of employees – Truong Thanh Company
Table of Regression analysis
Table of Completed Regression Analysis (shortened)
Table of collecting and evaluating quality of project –
Project of embanking Uong River
Collected result of questionnaire about project management
Suggestion of performance evaluation model - KPI of Planning
Division
Suggestion of performance evaluation model - KPI of Labor and
Salary Division
Suggestion of performance evaluation model - KPI of Technical
Division
Table of material pricing
Proposal of Table of Project’s cost monitoring - Material
Proposal of Table of Total project’s cost managing

Proposal of Table of Project’s quality evaluation
Thesis researching procedure
Project management function
Project’s procedure
Example of Gantt construction project
Example of method of setting up PERT chart in project management

3


22
23
24

Figure 2.1
Figure 2.2
Figure 3.1

Organization chart of Truong Thanh company
Progress of project implementation – Truong Thanh Company
Procedure of quality management of construction work

4


INTRODUCTION
1.
IMPERATIVENESS OF THE TOPIC
Preparing and implementing construction projects is currently the main activity of Truong
Thanh One Member Limited Liability Company. In particular, the management of

construction project plays a critical role in ensuring the success and effectiveness of
construction projects. Therefore, in order to achieve effectiveness in business activities, it
is necessary to focus on enhancing project management which is meaningful for Truong
Thanh Company development.
Being the main person in charge of project management for construction works of Truong
Thanh Company, spending the past years to learn and practice, I realize that besides the
achieving results, the project management of the Company still remains the restrictions
and weaknesses. Although these weaknesses have affected on performance of the
Company’s construction works especially in economic recession period, no method is
applied to solve out the issues. As a result, with the responsibility of manager and by
learning from course at PSGM, I has made a decision to choose the topic: “SOLUTION
TO IMPROVE EFFECTIVENESS IN PROJECT EXECUTION AT TRUONG THANH
ONE MEMBER LIMITED LIABILITY COMPANY”, which is not only for my thesis,
but also for Truong Thanh Company to eliminate the existing restrictions and weaknesses
in order to improve the effectiveness in implementing the construction project in the
future.
2.
RESEARCH OBJECTIVES
The paper will aim at the following objectives:
Systematize the theories about project management, management procedure and
-

effectiveness of implementing investment project of construction.
Set up system for evaluating the effectiveness of the construction project.
Analyze and evaluate the current situation of the construction project in Truong
Thanh One Member Limited Liability Company, leading to weaknesses and

-

shortcomings to find out the solution.

Propose the solution to enhance effectiveness of project implementation in Truong

3.

Thanh One Member Limited Liability Company.
RESEARCH’S OBJECT AND SCOPE

1


3.1. Research’s object
The thesis focuses on making research the effectiveness of project implementation in
Truong Thanh One Member Limited Liability Company in the following fields: Human
resource management and labor productivity, cost management and cost savings,
management of project progress.
3.2. Research method
The thesis refers to the projects within pass five years and proposes the solutions for the
upcoming project in next 5 years in Truong Thanh Company.
4.
RESEARCH METHODOLOGY
4.1. Process of research (Look at Figure 1)

Figure 1: Process of thesis research
Source: Suggested by author
Procedure interpretation: This thesis uses the method of applying theory to practice. This
paper will mention the project management procedure and the method of modern

2

management. Based on theory, by studying via direct observation and applying
econometric models to imply to achievements in order to promote the strengths and find
out the causes to fix and limit the weaknesses in current project management. As a result,
the practical solutions will be produced to enhance effectiveness of project
implementation in Truong Thanh Company.
4.2. Data collecting method
4.2.1. Secondary data: this is available data including:
Data, textbooks about project management
Available data of the industry
Company’s data includes: process of current project implementation, summarized
and detailed data, reports about completed project of the company, financial
statement, etc.
4.2.2. Primary data: this is data collected by the author by the following methods:
4.2.2.1.
Interview: interview the experts, direct executives.
Interview’s purpose: Find out the opinion of direct executives to evaluate the
current project implementation of the Company.
Interview’s content:
o
Current implementation process: achievements and weaknesses
o
Personnel organization, labor productivity and the factors effecting on labor
o
o

productivity.
Project process, situation of late progress and the methods to improve.
Management of project cost and unofficial cost, the factors effecting on project

costs.

o
Proposals to enhance the effectiveness of project implementation.
List of interviewees:
o
Project leaders
o
Project designers
o
Managers of some departments
4.2.2.2. Survey: using questionnaires to choose major opinions
o
Scope of survey: over all company members
o
Survey’s objects: Manager and direct executives in project management.
o
Survey’s objectives: Choose major opinion about current project implementation.
o
Questionnaire making method:
 Number of expected questions: 10 questions, including:

3


 09 questions encoded the data in form of options (06 options for each question in
which 05 options with available questions, the answerer tick the suitable one, the

o

rest for other opinion).
 01 opening question for individual opinion.

Delivery and collection method of questionnaire: deliver and collect directly
questionnaire. Contact point to deliver and collect questionnaire is project manager

4.3.
4.3.1.
4.3.2.
-

or head/ vice head of each department.
Data analysis method
Qualitative method
Personal evaluation about situation of project implementation in the Company
Based on survey’s result, collecting the opinion of employees
Comparing with personal opinion to make conclusion
Quantitative method
Collecting the survey’s result to make conclusion
Statistic and analyze the index of completed project, use regression model to

analyze the objectives and factors effecting on this objectives.
- Comparing the results with each other to make conclusion
4.3.3. Combining 02 methods: Based on results of 02 methods, referring the critical notes
for the analysis process.
5.
5.1.

CONTRIBUTION OF THE TOPIC
Theoretical basis: systemize the general issues of project management in the

construction company at present.
5.2. Factual basis: analyze and evaluate the situation of project management in Truong

Thanh Company at present. Based on applying scientific theories, the thesis will provide
the oriented and direct solutions for Truong Thanh Company in order to improve the
project management.
6.
STRUCTURE OF THESIS
The thesis includes:
Introduction
Chapter 1: Theoretical background of project’s effectiveness in business.
Chapter 2: Current situation of effectiveness in project implementing at Truong Thanh
One Member Limited Liability Company.
Chapter 3: Solution for improving the effectiveness of project execution at Truong
ThanhOne Member Limited Liability Company.

4


Conclusion

CHAPTER 1: BACKGROUND OF PROJECT’S EFFECTIVENESS IN BUSINESS

1.1.

Project management, project progress and project’s effectiveness

1.1.1. Definitions, features related to Project and Project Management
The definition of “project” and “project management” has been defined by many of both
international and domestic scholars, which are usually emphasized on a specific feature
on purpose. Abstractly it is “image of a situation or status which we want to achieve”. For

5

example, today we are visiting a blank area of land, in next five years we want to have a
building with thousands of families living on that place. It is a project of an apartment that
we want to execute. More specifically, project is “a specialized activity or a unique
mission which is implemented by special method, resource and schedule to create a new
entity”. By that many projects has been and being implemented. These projects are
distinguished by their method, mission or resource used. For example: the activity of
transferring the teachers to mountain region teaching the children of elementary ages is
called project of “The anti-illiteracy campaign for the minorities”. Another example is the
activity of purchasing the technical machine and training workers to operate to produce
the goods or services; or building up the public infrastructures such as bridge, drainage,
land road, railway; river and sea port, dyke, dam, lake, irrigational channel system …in
which there are work such as factory, equipment…placed on land surface built at specific
address is called the project of buildings construction investment. It is type of project
which Truong Thanh Company has been mainly focused on, and is different from other
types of project which are without of construction activity or the works attached to land
surface such as the project of buying auto, plane, and ship.
From the above mentioned facts, the definition of project should be:
Project: a series of related activities which are implemented in the limited time with
restricted human resources; especially budget in order to achieve a specific and clear
target, which satisfy the demand of targeted object. In other words, Project is a total
combination of policies, activities and costs which is designed in order to achieve a goal
in limited time.
Accordingly a project is including the following common features:
First, objective:
-

A project is always having one or some clear objectives.
The directional objectives are consistent during the project period.

The final outcome is always compared with the initial objective in order to evaluate the
suitability or success of project.
It is mentioned above as “status which we want to achieve” or “a specific mission needs
to be executed”.

6


Second, limited period of time:
-

Progress schedule is planned precisely
Clear starting and ending date
Each time mark is monitored and evaluated.
There is no project without specific date of implementation or completion. And a clear
target of a project always requires a clear date of achieving.
Third, limitation

-

Resources limit
Finance limit
Time limit
To execute a project needs human force and source of finance. Those two factors are
limited leads to the limit of resources for project executing.
To achieve the goal on time or before the deadline in accordance with the initial planning
and with quality assurance, human force needs to act exactly following to project
schedule. At project completion stage, result will be evaluated by comparing with initial
plan and criteria such as: objective, cost, method and progress. A successful project is to
reach a correct goal, to use the resource effectively at the least cost in the shortest length

of time. To give the answer for those issues, the methodology of project management and
implementation has been introduced which are formed Project Management science.
To sum up, Project Management: is a science which carries out the research of how to
plan, organize and control, monitor the development of project in order to assure the on
time completion within the approved budget but still keep quality assurance in order to
achieve specific purposes and targets.
How important is the role of project management?
Increasing demand for goods and services which is produced by complex procedure, high
technology; customer is more demanding; and knowledge of human kind is richer…
which are factor the strong development of Project Management science. Some great
works of mankind like Great Wall of China, the Pyramid of Egypt are still a secret
without the logic explanation relating to method of management and technology used,
because without these factors these wonders has never ever been completed.

7


In early of 19th century, science of project management has been formed by Henry Gantt
with invention of Gantt diagram as project managing tool; and by Henri Fayol with
finding of 05 managing functions which are basic for forming core theories of project and
program management. Frederick Winslow Taylor, furthermore, is a scientist who followed
the scientific project management methodology with modern project managing tool,
including the structure of work and resource assigning. During the research, those
scientists have been focused on the following issues: how to complete the project on
time? How to make up a correct plan? How to allocate the resources and to use the tool
correctly… The limitedness of cost, resources and time requires the correct and exact in
applying managing method. Overall it is approving how important the project
management is.
Generally project management includes 03 functions along with 03 main periods of a
project:

First, planning function: This period is focused on choosing the target, defining the
essential works, selecting the resources and preparing the action plan which can be
displayed as a systematic diagram.
Second, organizing, leading and coordinating function: this is the process of allocating the
resources including: budget, labor, equipment and time management – the most important
factor. This period is to set detail time of completion for each work part and for the whole
project (starting date and ending date).
Third, monitoring function: This is the process of observing, checking the project
progress, analyzing the completion status, settling related issues and reporting.
Functions of project management, however, are not separate parts, and they build up a
closed procedure. This content is approved during the re-establishment of project plan due
to outside factors which changes the initial plan remarkably (Figure 1.1 – Project
management functions).

8


Figure 1.1: Project management function
Source: Prof-Dr. Tu Quang Lam (2010), Project establishment and management textbook,
University of Agriculture and Forestry, Thai Nguyen University, Chapter I
Drawbacks of project management
Project implementation is a closed procedure. The reason of plan re-establishment is due
to drawbacks incurred during the project execution which leads to change of the initial
plan as a must. The normal issues are as follow:
In forming a project:
-

The project plan is not fitted with the plan of the investor
Controlling process is not prepared
The priority order is not announced to all related parties

No overview

In making plan:
-

Too many complex tools used
Creativeness is not appreciated
Resources assumption is not realistic

9


In organizing and executing:
-

Lack of internal cooperation
Business culture is different and lack of information sharing
Resources is not available whenever needed
Hardly check whether the local authority’s ability is meeting the requirement for

-

project implementing
The responsibility is not confirmed or clear.

In controlling:
-

Do not understanding the purpose of controlling
Do not monitor the schedule

Evaluation withdrawn from each meeting is not effective
Responsibilities is not fitted with the power of executive

The planning and organizing function is reduced the potential drawbacks incurred at the
very first stage of a project, and monitoring function helps to improvise when drawbacks
rises. To achieve the project’s goal requires the ability of orientation, leadership and
controlling of the manager in order to overcome the drawbacks and restructure the action
plan. Therefore, project management is strictly and thoroughly during a project
implementing period.
1.1.2. Project’s procedure and effectiveness
Project’s procedure
Project’s procedure is a combination of stages which the project spends, starting from
stage of investing decision in project to the time of project’s completion, and move to
new project (Figure 1.2: Project’s procedure)

10


Figure 1.2: Project’s procedure
Source: Lecture by Dr. Pham Hong Luan (2007) – University of Ho Chi Minh City – Chapter II slide 2

As can be seen from Figure 2, the project’s procedure has 03 stages: Preparing,
Implementing and Finishing. In this paper, the author wants to emphasize the stage II and
period 4 of project’s procedure: construction. At this period, project has been invested and
started to be executed until completing. It is, also, the main business of Truong Thanh
Company.
Project’s implementation and effectiveness
Project’s implementation is series of activities and work to convert the investment’s idea
into specific result in order to achieve the planning objectives. Process of implementing is
to carry out the function of project including mentioned above stage (Figure 2 – Project’s

Procedure): planning, organizing and collaborating, controlling and the person who does
these works is called project manager.
For construction project, the implementation’s procedure includes:
-

Preparing the construction plan and resources;

11


-

Designing and estimating cost;
Procuring, negotiating and signing the contract;
Constructing and installing, purchasing the equipment;
Testing, accepting and taking into operation.

The project’s manager has to collaborate and control these activities tightly and strictly
follow up the plan. At this period, the project’s manager needs to consider the following
issues:
-

Control the profits and costs;
Control the progress (in time manner);
Control the quality.

In addition, the manager has to take care of other related issues including increasing the
productivity of employees, controlling of operating risks and reacting flexibly to
uncertainties. If these issues are well controlled, the action plan will be conducted
properly and result in good outcomes.

To sum up, within this paper, the author is doing research on the Construction Period of
an investment project from planning stage to executing and accepting and taking into
operation. Besides, the important issues which the author focuses on are to control the
profit and cost, time and quality of a project.
1.2.

Criteria to evaluate the effectiveness of project execution in a company

Basic objective of a project is performed through result that each work’s part is conducted
effectively, completed as initial required, assured the quality, within the approved budget
and time of completion. The project’s execution is considered ineffectiveness if the
budget is break through, the quality is under standard, the progress jumps over the
deadline. Overall each criterion is tightly correlated and affects the final results. In
mathematical point of views, the effectiveness of a project is considered a function with
variables of Cost, Performance, Time and Quality.
H = f (C, P, T, Q)
Including:
-

H: Project effectiveness
f: function

12


-

C: cost
P: performance of work
T: time to complete

Q: quality of project

1.2.1. Profit – cost of a project (P/C)
Pursuant to Prof. Thayer Watkins – University of San Jose State –the analysis of cost –
benefit (CBA) is an evaluation and estimation of total value between benefits and cost of
a project to conclude whether the project is worth investing or effective. CBA is related,
but different from the effectiveness of cost analysis. By that, with CBA, benefit and cost
is under cash, and be adjusted to time value of money, which the flow of benefit and flow
of cost in time manner (has tendency to happen at different point of time) are displayed in
the same definition “net current value”.
The projects of Truong Thanh Company are gained via bidding. Therefore, the project
value is pre-estimated. Then the each work’s part is assigned to each executive team. By
that, to control the profit of a project is to control the cost. Based on the scope of this
paper to evaluate the effectiveness of Truong Thanh Company’s projects, author will
emphasize on cost controlling process. The cost portfolio is set up based on Circular
about Guidance to set up and control the investment cost of construction project no.
05/2007/TT-BXD, including:
Total investment of construction project (hereafter called total investment) is total
estimated cost investing for constructing written in investment decision and is basis for
investors to set up plan and manage the fund during implementing. Total investment is
calculated and estimated at the project planning stage suitable with content of project and
basic designation, in case only report of economics – technology, total investment is
estimated suitable with design of construction drawing.
Total investment includes: construction cost; equipment cost; compensation for land
acquisition cost, re-settlement; operating cost construction consultancy cost; other costs
and contingencies costs. (Details at Appendix 1: Portfolio of project’s management costs
– Truong Thanh Company).

13

For Truong Thanh Company, controlling the cost is core to gain profit from a project. The
contract price is not changed, and:
Profit = Contract price – Construction cost
As can be concluded from the formula, the less construction cost is, the more profit gains.
However the deduction of cost must not be against the quality of work. Therefore, to
effectively control cost is to spend reasonably, exactly and avoid unreasonable costs
incurred. List of Truong Thanh Company’s costs can be classified as follow (table 1.1):

Table 1.1: List of construction cost and controlling method
No.
1)

Types of
cost
Planning
cost

Form of cost

Factors affected

Salary,
Scale
and
allowance for complexity
Planning
project
Department

2)

Design cost

Salary for
designer
External
hiring cost
External
purchase

Scale and the
complexity of
project

3)

Material
cost

4)

Employee

Salary
for Construction
employee
length of time
Scale of project

5)

Constructio
n machine

Depreciation Scale of project
of machine, Construction

the Set up a group of experts with
of high qualification to do
project planning in the
shortest time with the highest
correctness
Utilize the internal designer
instead of hiring external
force to reduce the cost

Price of material
Work’s designation

14

Cost savings method

Make a comparing table of
price and quality of material
of each item; select the best
one suitable with the design.
Separate the work to control
the costs.

Control construction length of
time
Control the productivity of
employee
Reasonably
allocate
the
machine,
equipment,


equipment,
instrument
and tool
External
purchase

length of time

instrument,
tool,
strictly
control the operating and
using status
6)
Temporary
Scale of project
Build the temporary work
Number of human suitable with scale and
cost

force
number of human force of
project
7)
General cost External
Strictly
comply
with
purchase
regulation of saving in
transportation,
fuel,
electricity, water, stationery
used…
Source: Recommend by the author.
As a result, the scale, time of completion, quality of personnel, etc. play an important role
in effecting on the project cost. Each type of cost has its own controlling and saving
method. Amongst the general controlling methods is to use Table of monitoring project
cost (new table model suggested in chapter 3). Table of monitoring project’s cost can be
applied to a single type of cost and then, combined to overall control the progress of
whole project’s cost. Comparing to the planning, the project manager can control the cost
level and cost speed of each work’s part. Cost of a work’s part which is controlled
effectively has a reasonable spending speed and within the budget. Cost which exceeds
the budget at warning level can be settled in time.
1.2.2. Effectiveness of work and productivity
Evaluating an employee’s performance is a sensitive work because the conclusion will
affect the benefit of each person related to salary’s increasing, reward and discipline
considering, firing, training, promoting. If an employee is evaluated properly, the
personnel structuring will be more accurate, and this employee can perform their best.
Besides this employee also feels satisfied for being appreciated. He is more passionate for

the job which helps to reduce the cost and increase the productivity. The important thing

15


is that company must establish the criteria clearly, suitably with the real situation and has
a good tool to control the evaluation.
For evaluation of project effectiveness of Truong Thanh Company, it is essential work. Up
to now, the Company has been building up the internal quality evaluating procedure and
employee’s evaluation plays as an important role. However, the procedure has been not
completed. In the scope of this paper, author will only apply theory of work and
productivity evaluating methodology via table of targeted KPI.
KPI (Key Performance Indicators) is used to evaluate the work performance. Normally
each work’s title has a job description or monthly working plan. The manager will apply
the indicators to evaluate the effectiveness of this position. Based on the rate of KPI
completion, company will give the reward or punishment to each person.
In process of forming KPI, the managers usually quantify the wanted objective into
numbers. The specific numbers help the manager more easily in evaluating the work of
each employee by comparing the actual outcomes with the planning one. The difference
can be displayed by number or percentage completion. On the other hand, to usually
monitor the KPI helps the manager see the change of productivity of each employee who
is increasing or decreasing, so that the manager can motivate the employee in time. The
criteria for managing KPI are summarized as SMART:
-

Specific
Measurable
Achievable
Realistic
Time bound

Strong points of evaluation the employee’s performance based on KPIs are:
-

Evaluating the capacity and the completion of work scientifically. To apply KPIs in
company helps to increase the competitiveness by encouraging the employee show
off their best, and create a tight link between the different departments. To clearly
point out the direction and objective of company helps departments, divisions and
each individual develop consistently with company’s strategy at each moment.

16


-

Helping the company set the measurable criteria (quantification) and more flexibility

-

in setting up objective for each division or individual.
Evaluating the employee based on KPIs method will provide an overview of business
activities of a company. If evaluating properly, the employee will work harder, leads
to more productivity, and decrease the cost. In addition, this system can find out the
good employees to appreciate which let the increasing loyalty. To increase the

-

productivity of employee is to increase the effectiveness of Company.
Helping the company in planning the human resource accurately, and also help to set

-

up the salary system more reasonably, make decision on human issues fairly.
Helping the company control the target and business strategy to produce good

-

outcomes
Analyzing the company more accurate
Based on the performance and potentiality of employee which the manager has found
out, the employee can be trained further or introduced to join other projects to
improve their skills. It is very important and useful in developing career path for an
employee at company’s key position.

Normally KPIs provides the marking methodology based on quantifying each objective
into same measuring unit. In this paper, author will recommend the Table of Work
evaluation based on KPIs (suggestion of KPIs models in chapter 3). The quantification of
each work’s part and employees rating is more accurate and objective.
1.2.3. Evaluation of project quality
A project is considered to achieve the quality condition when meeting the criteria of costs
and construction time spent and also gained the technical requirements in accordance with
bidding profile.
Each work’s part will be evaluated follows the acceptance minutes of the company
(Appendix 4). Up to now each work’s parts has been evaluated separately, so author
suggests use the Table of Quality Evaluation Summary (Examples in table 1.2 – Quality
Evaluation Summary):
Table 1.2: Table of quality evaluation summary

17

No.

Criteria

Standard

1

Construction
cost
Construction
time
Material quality
Sand

2
3

Ballast
Wet volume
Dryness of
material

Variables

Allowed
variables

Conclusion

1000

Real
outcom
e
1145

145

200

Within the limit

700

850

150

90

Late

TCVN
7570-2006
TCVN
7570-2006
1900
1988

1850
1824

Pass
Pass
88
-26

+100
+20

Pass
High humidity,
need additional
drying method

….
Source: Suggested by author

The above table is work’s quality evaluation summary. Based on this table, the manager
has a overview of works for evaluating the quality of work and make the improvement to
maintain the quality standard.
1.2.4. Evaluation of project implementation progress
With a construction company, the length of time of implementation is very important and
received the concern from all parties. While the controlling of cost and evaluation of
effectiveness is majorly internal activity, the completion process of a project refers to
investor, subcontractors... A unique feature of a project is the limit of execution time.
Therefore with construction project, the construction schedule is one of the first factors in
the plan.
We use Gantt chart to make up the project progress. The horizontal Gantt chart, or also

called Gantt graph or Gantt diagram, is the oldest chart of project progress, which

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invented in 1910 by Henry Gantt. See the example Figure 1.3 – example of Gantt chart in
construction project:

Figure 1.3: Example of Gantt construction project
Source: />Despite the classic factors, due to the simplicity nowadays horizontal Gantt chart is
popularly used in project management, and even improved to apply in modern software
such as Microsoft Project to display a complex form of progress like network chart (of
project). With technical or construction project with many parts, Gantt chart is applied
and developed to advances charts like Critical Part Method or Arrow Diagram Method.
Besides, for work without the specific completion length of time, we use PERT (program
evaluation and review technique), which shows the order of work and the finishing date,
and points out the work’s part must completed on time in order to avoid the slowdown for
the whole project, or transfer the resource from not critical task to critical one without
affective the completion length of time. For example Figure 1.4 – Example of method of
setting up PERT chart in project management.

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Figure 1.4: Example of method of setting up PERT chart in project management
Source: />At present we usually combine all methods to make up the project progress. Each method
has its own advantages and the combination of them can produce the perfect outcomes.
1.3.

Methods of evaluating the effectiveness of a project

1.3.1. Evaluating the effectiveness of a project by quantitative methodology
1.3.1.1.

Analyze the data of completed project

Analyze the data by the variables method
It is the simplest, however, the most effective and suitable analyzing method for Truong
Thanh Company. As being said above, projects of Truong Thanh Company are assigned
under lump-sum contract to the subsidiaries. The method of variables evaluation will
point out the difference between actual outcomes and planning target, help the managers
see clearly the strong and weak points to focus on. In addition, it shows the decreasing or
increasing situation of items in different moment. If the variables in cost items is low, it is
a strong point and need to maintain in controlling the costs, and in contrast, an cost item is
always surpass the budget leads to the decrease of profit, we need to consider this item

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and make the improvement. The variables method is also used to evaluate the project
completion process and effectiveness of employees.
Regression function method
This is method of using the statistics regression function to find out the relationship
between a variable to others. This method is often used in improvement or enhancement
activities of a project. And this method is applied only when key factors are known. The
regression function is as follow:
Y = 0 + 1X1 + 2X2 +…+ nXn + 
X1,i, X2,i,…,X,I are independent variables along with observe I; β are arguments of
regression. By analyzing the regression function, the manager can easily point out the
effect of variables X to Y, which gives clues to make the best decision. In other words, it

shows how to select which variable to increase or decrease to achieve the targeted value
of Y.
This method provides the accuracy at high level, however, in order to apply we need to
collect the right data and define the independent variables. Generally this method is
applied to quantify the objective such as cost items and project completion progress. If
this method is used to evaluate the employee’s performance, the objective must be
quantified accurately.
1.3.1.2.

The strong and weak points of project execution by analyzing real data

After summarizing all above researches, author will point out the strong and weak points
of Truong Thanh Company and suggest the method to enhance the strength, to limit the
weakness in order to upgrade the effectiveness of investment project.
1.3.2. Evaluating the effectiveness of a project by qualitative method
1.3.2.1.

Generalize and analyze result of experts interviewing

Interview is researching method which is emphasized more on an individual in
comparison with table of questions. In personal interview, the interviewer faces directly
with the interviewee. Different from the questionnaire sent via email, the interviewer has
chance to ask the next and next questions. An interview method is applied in this paper as
follow:

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