INFLUENCE OF SCOPE MANAGEMENT IN CONSTRUCTION INDUSTRY PROJECTS INFLUENCIA DE LA GESTIÓN DEL ALCANCE EN LOS PROYECTOS DEL SECTOR DE LA CONSTRUCCIÓN

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INFLUENCE OF SCOPE MANAGEMENT IN CONSTRUCTION INDUSTRY Alberto Cerezo-Narváez, Manuel Otero-Mateo, Andrés Pastor-Fernández Universidad de Cádiz. Escuela Superior de Ingeniería. Departamento de Ingeniería

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INFLUENCE OF SCOPE MANAGEMENT IN CONSTRUCTION INDUSTRY Alberto Cerezo-Narváez, Manuel Otero-Mateo, Andrés Pastor-Fernández Universidad de Cádiz. Escuela Superior de Ingeniería. Departamento de Ingeniería Mecánica y Diseño Industrial. Avenida de la Universidad de Cádiz, Puerto Real, Cádiz. Teléfono: Received: 21/jan/ Accepted: 22/jun/ DOI: INFLUENCIA DE LA GESTIÓN DEL ALCANCE EN LOS PROYECTOS DEL SECTOR DE LA CONSTRUCCIÓN ABSTRACT: In the period , Spanish construction industry falls into a deep crisis, that loses two-thirds of its companies, drastically reduces its production, misses the majority of its workers, and decreases its contribution to Spanish gross domestic product to less than half. At the same time, in 2015 less than a third of projects in the worldwide construction industry end without overruns and only a quarter do so on time. Both circumstances invite to research about how to acquire competencies in project management for involved agents in the construction processes, in order to improve their performance, avoiding their failure. Project scope is the first of success dimensions, due to its globalizing nature and predictive significance, as well as for its tactical importance against changes. In this context, ISO standard meets the ideal conditions to be used as reference to model a system for project scope management that improves the construction projects performance, by adopting measures to prevent scope creep, in any of variants. Through analysis and critique of literature, those characteristics related to scope management and those related to success that generate the greatest agreement are collected. Among pre-selected features, those considered by literature as critical success factors are compiled. Then, based on a questionnaire given to construction industry professionals in Spain, the degree of importance of each factor is calculated and, finally, a structural equation model is proposed, in which it is confirmed that projects scope management decisively influences organizations sustained success. Keywords: stakeholders, scope management, critical success factors, project success, construction industry RESUMEN: En el periodo comprendido entre 2008 y 2015, la industria de la construcción en España cae en una profunda crisis, que hace desaparecer dos terceras partes de sus empresas, reducir drásticamente su producción, perder la gran mayoría de sus trabajadores y ver disminuida su contribución al producto interior bruto hasta menos de la mitad. Asimismo, en 2015 y a nivel mundial, menos de un tercio de los proyectos del sector de la construcción, finalizan sin sobrecostes y sólo la cuarta parte, lo hacen a tiempo. Ambas circunstancias invitan a investigar en la adquisición de competencias en dirección de proyectos para los agentes intervinientes en los procesos constructivos, con el objeto de mejorar su rendimiento, evitando su fracaso. La gestión del alcance de los proyectos, se presenta como la primera de las dimensiones de éxito, por su naturaleza globalizadora y significancia predictiva, así como por su importancia táctica frente a los cambios. En este contexto, el estándar ISO reúne las condiciones ideales para servir de referencia para modelizar un sistema de gestión del alcance que mejore las prestaciones de los proyectos, adoptando medidas que eviten su corrupción, en cualquiera de sus variantes. Mediante análisis y crítica de la literatura, se recopilan aquellas características relacionadas con la gestión del alcance y aquellos criterios relacionados con el éxito que mayor consenso generan. De entre las características y criterios preseleccionados, se recopilan aquellos considerados por la literatura como factores críticos de éxito. Seguidamente, a partir de una encuesta realizada a profesionales del sector de la construcción en España, se barema el grado de importancia otorgado a cada uno de los factores y, finalmente, se plantea un modelo de ecuaciones estructurales, en el que se confirma que la gestión del alcance de los proyectos influye decisivamente en el éxito sostenido de las organizaciones. Palabras clave: partes interesadas, gestión del alcance, factor crítico de éxito, éxito del proyecto, industria de la construcción 1.- INTRODUCTION The construction industry shows in Spain, during the period , a state of crisis that forces organizations to rethink their strategies for their current survival and future development of their activities. At a macroeconomic level, there are many indicators that reflect the severity of this situation: Pag. 1 / 15 - Production falls by 79,66% [1] - Number of workers decreases by 65,59% [2] - Trade turnover descends by 68,23% [2] - Contribution to Spanish GDP reduces by 52,22%, from 10,61% to 5,07% [3] Also concerning projects completion [4], in 2015 worldwide: - 31% of construction projects are completed below 110% of planned budget - 25% of construction projects are completed below 110% of planned schedule In this context of deep economic crisis, high failure rate in undertaken projects and increasing technical and socioeconomic complexity of construction processes [5], construction organizations need to establish a competitive advantage [6], by expanding market shares and/or creating new business areas; emerging project management as a solution, thanks to participate effectively in the interests and needs of clients and other stakeholders, ensuring the achievement of involved organizations [7] SCOPE MANAGEMENT The first step in the implementation and control of a project management standardized methodology in the construction industry organizations, as a framework for the establishment of policies on projects, consists of managing their scope [8], establishing objectives, setting limits, specifying deliverables and ensuring the understanding of roles in the construction processes and of derived actions from agents responsibilities [9]. From the point of view of the construction industry organizations that develop projects, scope management defines them, providing, with the stakeholders analysis, the necessary especifications to describe the contract; agreeing requirements, restrictions, exclusions and potential solutions [10]; according the work to complete them [11]; planning, executing and controlling [12]; and, once completed, being validated and verifying deliverables [13]. management considers what can be done in projects, why it must be done and how it can be done. Likewise, projects scope has a strong relationship with major restrictions, such as time, cost, quality, risks and resources [7]; being established as a precursor variable of technical performance and generated business, playing a key role in results definition and representing the strategic mission of organizations that manage them [13]. Given the diversity of guides, bodies of knowledge, bases for competence, good practices and recommendations that are being offered by associations in project management, such as the International Project Association (IPMA) or the Project Institute (PMI), the international standard ISO [14] combines the guidelines set by them [15]: - Provide a common language - Get organized as a model that follows the lifecycle of projects - Be carried out by processes - Use concepts and needed skills to impact on performance - Be compatible with British standards BS6079 and PRINCE2, German standard DIN69901, US standard ANSI BSR / PMI , Japanese standard PMAJ P2M, Australian standard AS4915 and international standards IPMA ICB and PMI PMBOK, among others Based on ISO 21500, as Figure 01 shows, a system for scope management is presented, including the considerations of the two most prestigious organizations in this field; PMI, with its research programs and development opportunities, and IPMA, with its humanistic vision. For its modelization, it s adopted a competences-based approach from IPMA ICB4 [16], to acquire the necessary professional competencies; and a processes-based approach from PMI PMBOK 5 [17], to provide the framework in which to apply the system processes, that are grouped into these three stages: Pag. 2 / 15 - During project planning: - design, involving the project manager with key stakeholders, which consists of the processes of requirements agreement and scope definition - development, involving the project manager and the management team, which consists of the process of work structuration - During project execution and control: - supervision, involving the project manager and the management team with project implementation team, which consists of the processes of scope control and changes integration COMPETENCES-BASED APPROACH Requirements and Objetives Project Deliverables Structure Project IPMA ICB Work Packages Establish Configuration Plan and 5.2 Collect Requirements Create WBS PMI PMBOK Activities Perform Integrated Changes ISO Project Constraints Create WBS Activities Changes PROCESSES-BASED APPROACH PLANNING CONTROL Design (VSM03) Development (VSM04) Supervision (VSM07) Agree Requirements (VSM01) (VSM02) Structure Work (VSM04) (VSM05) Integrate Changes (VSM06) Key Stakeholders Team Execution Team Project Manager Figure 01. Development of a scope management system based on the most important international standards Pag. 3 / 15 Design scope stage analyzes and converts stakeholders needs and expectations into requirements, in order to meet project objetives, for what to try [16, 17]: - both work and deliverables - Analyze requirements providers - Study agreed requirements impact - Examine assumptions and constraints - Include both intermediate and final deliverables characteristics, specifications and acceptance criteria, preliminary cost estimates and schedule milestones Development scope stage organizes and defines the work to be performed, for what to consider [16, 17]: - Communicate what to do and how to deliver the results - Identify both activities and results - Consolidate requirements - Facilitate the assignment of roles and responsibilities - Avoid the omission of tasks and their duplicity - Guide the realization of both budget and schedule - Facilitate impact analysis and communication - Integrate changes control - Reference improvement processes - Document learned lessons Supervision scope stage ensures objectives compliance and expected goals achievement, for what to attempt [16, 17]: - Measure performance - Identify variations - Take both preventive and corrective actions - Influence factors that cause scope changes - Analyze requested changes impact, studying its conditions and traceability - Ensure agreed changes are properly processed - Review deliverables - Get a formal acceptance ORGANIZATIONS SUSTAINED SUCCESS The investigation of critical success factors in the construction industry is a general strategy of organizations to address their challenges [18] and improve the efficiency of their processes [19], in order to maintain and increase their competitiveness [20]; ensuring that stakeholders expectations are adequately satisfied and that their future demands are properly treated [21]. management is critical to the successful implementation of projects [22], as well as to satisfy the organization, business, customers and other stakeholders [10]. However, projects success is influenced by a wide range of additional factors, which, if neglected, damage their results [23]. Furthermore, integral success criteria must reflect the diverse interests and perspectives of stakeholders [24], leading to a multidimensional approach [25]. Principal dimensions to judge the resulting total success [26], are: - Project, including its main constraints (scope, cost, time, quality, risk and resources) - Customers, including their satisfaction and real use of project results - Organization, including its market positioning and generating profits In relation to the success of the project, consisting of the achievement of the agreed objectives [20], completing the defined scope and generating the committed deliverables [8], with the participation of stakeholders [27], two components are identified [10]: Pag. 4 / 15 - Project management success, focusing on processes and how the project is implemented - Results success, based on the effects of the resulting project products and/or services: - Compliance with strategic objectives (added value, project goals) - Satisfaction of stakeholders needs (efficiency, processes quality) Project management is a complex undertaking, in which is necessary to attend many variables and be alert to early signs of problems, using tools for monitoring, allowing a proactive response [28]. In this regard, activities to ensure that project management practices are effective and efficient, are directly related to project management functions [29]: - Anticipate potential conflicts arising from stakeholders needs and expectations - Understand the root cause of previous problems, to prevent their recurrence - Provide all necessary resources, including those for improvement, innovation and learning - Monitor, measure and analyze - Keep stakeholders informed, getting them their commitment - Develop, update and meet objectives, including setting deadlines to achieve them - Review management system and its processes, updating them if necessary - Ensure that results are consistent with strategy Organizational project management maturity lies in its capacity to success consistently. According to this base, as ISO 9004 determines [30], organizations sustained success is achieved thanks to its ability to meet stakeholders needs and expectations, including customers, in the long term and in a balanced way, through learning, efficient management and enviroment awareness. 2.- METHODOLOGY Investigation aims to demonstrate the influence of project scope management on the success of the project itself, in generated business and in the organization that undertakes it. To do this, project scope management defines and controls what is included and excluded from it, checks the full completion of work and prevents aggregation of work not agreed, through changes management, from identifying stakeholders, determining needs to cover, defining objectives and gathering requirements. Used methodology is the observation by questionnaire. For the collection and subsequent statistical processing of data, the free platform Google Forms is used. Based on the analysis of the received responses, through their discrete and individual quantification, knowledge under study is characterized and the relationships among interest variables are statistically contrasted. For the study, a Likert specific scale of five items 1-5 is adopted, which allows to measure attitudes and determine the degree of compliance with the proposed respondents claims, helping professionals in motivating their opinions, to capture their intensity towards those statements. In the selection of questions, a structured two-step process is followed: 1. As primary sources, from literature, an extract is performed: - Characteristics of projects scope management - Criteria (set of principles or standards used to judge a series of events) for organizations sustained success 2. As secondary sources, from literature, an extract is performed: - Critical success factors (characteristics, issues or variables that cause an essential and direct impact) in projects scope management - Critical success factors in projects, business and organizations After the analysis of the sources of information for the questionnaire preparation, in Tables 01a-01b, are summarized the resulting issues, in which respondents are asked, in the context of the construction industry, about the degree of importance given to each of items that are exposed: Pag. 5 / 15 Codes Questionnaire items Characteristics and criteria Factors Questions about project scope design: SM01 Getting information from stakeholders and achieving their involvement [16, 17] [10, 13] SM02 Studying stakeholders needs and expectations and legal provisions [16, 17] [11, 13] SM03 Collecting and processing requirements into technical and functional specifications [16, 17] [5, 31] SM04 Analyzing requirements potential impact and prioritization [16, 17] [5, 11] SM05 Getting customer participation, commitment and acceptance [16, 17] [5, 13] SM06 Defining project limits and description of work to be done [16, 17] [5, 13] SM07 Analyzing constraints and considering assumptions [16, 17] [10, 13] SM08 Agreeing definition of deliverables and milestones [16, 17] [13, 31] Questions about project scope development: SM09 Sizing the project and organizing its planning [32, 33] [5, 13] SM10 Dividing work in a structured way [32, 33] [5, 12] SM11 Coordinating project activities in a effective way [7, 8] [12, 13] SM12 Checking the reliability and integrity of project planning [7, 8] [12, 13] Questions about project scope supervision: SM13 Using a project scope control system [14, 17] [11, 13] SM14 Involving the client during project implementation [16, 17] [5, 13] SM15 Establishing metrics for calculating project performance indicators [16, 17] [13, 31] SM16 Evaluating project scope regularly and making contingency plans [8, 16] [5, 13] SM17 Getting performance according to available capacities [8, 16] [5, 31] SM18 Validating and verifying the deliverables quality [14, 17] [11, 13] SM19 Implementing a project changes integrated control system [17, 34] [5, 35] SM20 Eliminating the resistance to change [16, 34] [13, 35] Table 01a. Critical success factors for projects scope management Codes Questions about project success: TS01 Fulfilling agreed requirements with project results [23, 24] [10, 11] TS02 Prospering customer thanks to project benefits [18, 24] [13, 19] TS03 ling the integrity of project baselines [23, 24] [10, 11] TS04 Guaranteeing project profitability and productivity [18, 24] [13, 19] Questions about context success: TS05 Satisfying the organization [24, 27] [5, 20] TS06 Satisfying the project manager and the management team [18, 24] [5, 20] TS07 Satisfying the project execution team [18, 24] [5, 10] TS08 Satisfying other stakeholders [18, 27] [5, 20] TS09 Satisfying the customer [24, 27] [10, 13] TS10 Satisfying final users [18, 27] [13, 20] TS11 Contributing to new projects [18, 24] [20, 26] TS12 Ensuring business continuity [18, 24] [20, 26] Table 01b. Critical success factors for organizations sustained success Then, once the questionnaire is full defined, it is distributed by the following media: - Firstly, to working groups, through social network LinkedIn: - AECMA Asociación Española de Construction - AEGC Asociación Española de la Gestión de la Construcción - AEPDP Asociación Española de Profesionales en Dirección de Proyectos - CCPM Construction Certified Project Managers PMP - CMAS Construction Association of Spain - DIP Dirección Integrada de Proyectos - DP Directivos y Profesionales de Proyectos de Edificios e Infraestructuras - ISO Project - SEARCH&DRIVE Profesionales de la Arquitectura y la Ingeniería - TL Técnicos de la Arquitectura, Construcción e Ingeniería Pag. 6 / 15 - Secondly, through public lists of Spanish official colleges of professionals with legal attributions in the construction industry: - Higher Council of the Colleges of Architects of Spain - General Council of Technical Architecture of Spain - College of Road, Canal and Port Engineers of Spain - College of Public Works Technical Engineers and Civil Engineers of Spain - Higher Council of Colleges of Industrial Engineers of Spain - General Council of Technical Industrial Engineering of Spain - Thirdly, thanks to professional associations: - AEIPRO Spanish Project and Engineering Association - PMA Project Managers Association of Andalusia - PMI Spanish Chapters (Balearic Islands, Barcelona, Madrid and Valencia) 3.- RESULTS Once the exhibition period of the questionnaire is ended, 380 responses are received, of which 25 are rejected for not presenting respondents a demon
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