Product Failure, the Causes, and Effects on the Nigerian Economy
Chapter One
Objectives of the Study
The objectives of the study were:
- To establish the extent to which product financing causes product failure in the building sector.
- To investigate the extent to which product planning causes product failure in the building sector.
- Tofind out the extent to which manager’s experience influences product failure in the building sector.
- To establish the effects of product failure on the community, the managers and the economy.
CHAPTER TWO
LITERATURE REVIEW
Project Management
Time, cost and quality
Project Management is the application of a collection of tools and techniques (such as the CPM and matrix organization) to direct the use of diverse resources toward the accomplishment of a unique, complex, one-time task within time, cost and quality constraints. Each task requires a particular mix of these tools and techniques structured to the task environment and life cycle (from conception to completion) of the task (Atkinson, 1999). According to Nwachukwu, Echeme and Okoli (2010), achieving successful completion in the building development process is the major function of project management. The answer to project success, failure, abandonment, and collapse of building construction lies in efficient project management. Building products must be made to succeed because its execution often involves substantial funds. The loss through failure or abandonment has a crippling effect on the capabilities of the investors, the financiers and for the fact that scarce resources are tied down for a long time as opportunity cost for its alternative uses. The project may also be the only future hope of the client and therefore expect nothing but success.
Nwachukwu et al (2010), termed a project to be successfully complete if it passed four success test criteria i.e. the time criterion – completed on time; the cost or money criterion – completed within budget; the effectiveness criterion – completed in accordance with the original set performance and quality standards; and client’s satisfaction criterion – accepted by the intended users or clients whether the client is internal or from outside the organization. The above success criteria call for successful project implementation by the utilization of proven management techniques of planning, organizing, directing and control. The issues on life cycle management, time management, conflict resolution and management, networking, contracts management, project choice and project quality are the key factors that contribute to project success.
Efficient project management is very important. The strategies for successful completion in any building project are implemented in the management of the Project Time, Cost, Quality and Material management using project life cycle concept. Project management is believed to be justified as a means of avoiding the ills inherent in the construction and production sectors of the economy and for which reasons most projects fail and or abandoned. The project managers role arises from the need for a technical expert to take charge, control of events on the project implementation process, someone who understands the intricacies of co-ordinating, controlling, organizing and directing the efforts and activities of the professional team and the managers as well as dealing with the physical problems of the implementation process with the needs in the decision making process. The success of any project implementation process in the construction industry in the public and private sectors depend largely on the project manager’s concept on staff appointments and control, strict monitoring of time, cost, material, quality and environmental constraints.
The Project Life Cycle
The Project Life Cycle consists of four distinct phases: conceptualization, planning, execution/implementation and termination phases. Each of these phases should be carried out in sequence. The conceptualization phase has to do with choosing a project from among alternatives. The planning phase has to do with the setting of benchmarks with reference to time, cost and quality. The general rule of thumb is the more time you spend in the planning stage, the less time you spend in the implementation stage. Schwalbe (2009), looks at time planning management as that process that leads to the generation of a milestone list, a network diagram, the activity resource requirements, the activity duration estimates and a project schedule. The critical path analysis is an invaluable project management tool that determines the shortest time in which a project can be completed. The critical task items are tasks that must be completed and it is by focusing on the completion of these tasks that time can be managed. Cost management has to do with ensuring that a project is completed within an approved budget.
The implementation has to do with the controlling of a project. According to Cleland and Ireland (2007), control is the process of monitoring, evaluating and comparing results with actual results to determine the progress toward project cost, schedule and technical performance objectives. Regularly scheduled and conducted project reviews are held throughout the project implementation. Monitoring and feedback refer to building project control system or processes by which at each stage of the implementation, key personnel receive feedback on how the project is comparing or conforming to initial projections in time management, cost, quality and materials. If necessary corrective action is effected. It may take the form of replanning, reallocation of resources or changing the manner in which the project is organized or managed.
According to Vasilescu (2009), products are complex human endeavours that entail extensive planning and tight control if they are to be successful. In any industry and in any country of the Globe, they have always posed difficult challenges to the project teams and project stakeholders, challenges such as: costs overrun, delays in project delivery, quality control and profitability. Overriding costs are especially risky since they can trigger a whole array of new problems, such as delays in project delivery, the impossibility of attracting supplementary financial support, quality concerns and finally, project failure. As a result, project planning and monitoring are the most important stages in the project development cycle. Nwachukwu (2011) pointed out the need for adequate communication channels are extremely important in creating an atmosphere for successful implementation of a building project.
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
This study employed a descriptive and correlative research design. For the intent of seeking new knowledge, it was an explorative design (Olatunji, 2010). It was also correlative because it sought to establish a relationship between independent variables and the dependent variable. Their implication for cause and effect were also investigated. Further the study didn’t in any way intent to alter the theses and the phenomena but merely discover and explain the relationship. It was descriptive for it aimed its result of data analysis the description of the relationship between the dependent and independent variables. The descriptive research involves gathering data and systematically treating it to present a comprehensive and intelligible inference (Orodho & Kombo, 2002). The authors further describe the entire process as including organization of data, presentation, analysis and interpreting it after collection. A descriptive design sought to give a causal relationship between delay of projects in the construction industry which is the dependent variable and the independent variables being Projects Financing, Project Planning, Managers Experience and Supervision.
Target Population
Target population as described by Borg and Grall (2009) is a universal set of study of all members of real or hypothetical set of people, events or objects to which an investigator wishes to generalize the result. The target population of this study was building managers in Egboma while the study population was government representatives from the Ministry of Works with major emphasis to Julius Berger employees, Managers, Consultants, Engineers from Edo state and technical auditors participating in building products in Edo state.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Introduction
The data collected was keyed and analyzed by simple descriptive analysis using Statistical Package for Social Scientists (SPSS) version 20.0 software. The data was then presented through frequency tables and narrative analysis. The chapter presents data in different sub-sections that are in relationship with the objectives and the items asked in the questionnaire. Data was then analyzed using the Chi-Square.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This chapter presents the summary of the study findings, discussions, conclusions and recommendation of the research. The chapter also contains suggestions of related studies that may be carried out in the future.
Summary of Findings
The aim of this study was to establish the determinants of projects delay in the construction industry in Nigeria. From an analysis and review of the research data and additional data gathered through interviews and questionnaires filled, issues that follow become evident.
The first objective sought to establish the extent to which product financing causes product failure in the building sector and from the responses, 5 respondents agreed with the idea that the building projects have been allocated enough finances, 45 went for no while those who were not sure made 7.4% of the responses, bringing the total to 4 respondents. When asked to give reasons for the above answers, the respondents argued that the budgets allocated to the buildings products took long procedures and the money was always slashed to the point that the activities they are intended to perform are compromised. Others argued that the management that is centrally operating from Edo has been misallocating the funds and at times embezzling them.
In relation to the second objective that sought investigate the extent to which product planning causes product failure in the building sector, the following responses became apparent. 3 respondents strongly disagreed with the idea that Pre-Planning of the buildings projects is very poor, 3 disagreed, 15 weekly agreed, 14 agreed, while the rest 19 strongly agreed with the factor. On the factor that focused on project schedule planning has not been achieved due to poor coordination attracted, 2 respondents who strongly disagreed, 5 disagreed, 28 weekly agreed, 14 agreed, while the remaining 5 strongly agreed with the factor. On the final factors that read, Julius Berger has compromised plans due to external interferences had the responses as follows: 0 respondents who strongly disagreed, 13disagreed, 21 weekly agreed, 10 agreed, while the remaining 10 strongly agreed with the statement.
Conclusion
This study has shown factors which contribute to the causes of product failure, especially the various activities of the parties within the construction industry which include withdrawal/late honouring of certificates of payment, breach of contracts, indiscrimination award of contracts and corruption on the part of the public clients and also, the failure of the client to make fund available.
Furthermore, the study also reveals the role of consultants in abandoned projects, which include; producing drawings, assessing client’s financial capacity, specifications and modification. These tends to pose a great task if relevant safety measures are not put in place and creating problems for the managers to cope with, which may eventually lead to product failure.
Also, the role of managers in product failure is also reveal, which are lack of proper coordination of submanagers and other specialist firms, lack of schedule of plants, equipments and materials, poor management skills, improper supervision of structural works, technical deficiency and lack of good incentive scheme. All these must be checked to reduce product failure.
Recommendations
Based on the findings of the study that has come from the respondents in the field and the literature review, the researcher recommends that the national government should increase the budgetary allocation to Julius Berger, make it uniform across the country and should review the budget regularly in relation to the inflation rates.
The study also recommends that Julius Berger should undergo proper and checked planning at all levels including the EIA planning so as to achieve timely deliveries. The planning can be done by both national engineers and the county buildings board so as to have the process of implementing these projects being fastened.
Another recommendation is that, the experience of the managers should be scrutinized, their track records be well understood and proper procedures of testing these manager’s experience be checked. This can be done by experts from other parts that have had success in the rate at which projects success has been in these regions. The contracting of experienced contactors also should be intertwined with the fact of the technology they integrate.
Finally, the researcher recommends that supervision should be continuous and in fact it should be made a daily activity to the buildings sites. Absentee supervisors shouldn’t be even allowed to take part in any building construction in the country. Continuous monitoring and evaluation should be done in order to ensure that all the steps of the project cycle are achieved.
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