Journal of Management in Engineering

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April 2012

Volume 28, Issue 2, pp. 81-230

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Editor’s Note

Makarand Hastak

J. Manage. Eng. 28, 81 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000120 (1 page)

Online Publication Date: 15 March 2012

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Critical Analysis of Partnering Research Trend in Construction Journals

Yuming Hong, Daniel W. M. Chan, M.ASCE, Albert P. C. Chan, and John F. Y. Yeung

J. Manage. Eng. 28, 82 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000084 (14 pages)

Online Publication Date: 20 August 2011

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Over the past two decades, significant literature has been dedicated to research studies on construction partnering and related issues, and a plethora of underlying theories and industrial practices on partnering application have been reported. This paper aims to explore, analyze, and summarize the research trend of partnering related studies in construction using desktop search method from several leading construction-related journals. On the basis of an extensive and rigorous literature review, a series of partnering related journal articles published from 1989 to 2009 were analyzed in terms of the annual number of partnering related publications, the level of contributions made by various institutions and regions, and the research focus on their studies. A critical analysis of the reported literature revealed that, in general, the number of partnering related publications in these journals has been increasing from 1989 to just before 2007 when the number of publications the peaked. The findings might imply that partnering is becoming more and more important to the construction industry at large. This study also indicated that researchers from the United States published the largest number of partnering related papers on a regional basis, followed by those from the United Kingdom, Hong Kong (China), Sweden, Australia, Mainland China, and Korea. Research topics published in these journals tend to focus on partnering conceptual models, reviews of partnering development and application, potential benefits of and barriers to implementation, critical success factors, and partnering performance measurement and evaluation together with use of partnering across the construction supply chain, while the quantitative research techniques applied to this field of study involve primarily regression analysis, analytic hierarchy process (AHP), analytic network process (ANP), fuzzy set theory, and balanced scorecard method.

Insurance Pricing for Windstorm-Susceptible Developments: Bootstrapping Approach

Islam H. El-adaway

J. Manage. Eng. 28, 96 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000088 (8 pages)

Online Publication Date: 15 September 2011

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Natural disasters have resulted in record losses for the last 50 years. Decision makers are rightly concerned about the vulnerability of their economies for which they have to make, under uncertainty, complex investment and policy choices. The challenge with estimating losses of extreme weather events (e.g., windstorms) is that it may take thousands of years to capture statistically meaningful events. Thus, stochastic simulation is usually incorporated in insurance pricing models. This paper proposes a risk management model to price insurance premiums for windstorm-susceptible developments. The model is applied within the regional context of Mississippi where the total windstorm events recorded between June 30, 1950 and June 30, 2010 was 1,988 and resulted in $1.875 billion losses. Mississippi was divided into three regions pursuant to the wind speed contours developed by the International Building Code. The historic data set was bootstrapped through imposing correlation to generate a data set of 5,000 events in each division. The simulated data set was modeled by using a Monte Carlo simulation on the basis of the options theory to price the fair-valued premium for windstorm insurance. A $250,000 home can be insured at 100% coverage for an annual premium of $8,200, $4,350, and $2,975 at the predesignated three divisions. The robustness of the model is such that, even with limited historic information, it can provide meaningful and dependable insurance premiums. The model has been extended to provide detailed regional vulnerability analysis. This should increase the societal financial resilience to the negative consequences of windstorm risks.

Optimization of Bid-Winning Potential and Capital Structure for Build-Operate-Transfer Road Projects in India

K. C. Iyer and Mohammed Sagheer

J. Manage. Eng. 28, 104 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000071 (10 pages)

Online Publication Date: 5 May 2011

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Build/Operate/Transfer (BOT) arrangement has gained wide acceptance across the world for providing public infrastructure. Such arrangements, which reallocate risks and rewards between public and private sectors, present complex issues for the prospective concessionaires. During the bidding stage, the prime concerns of the private investors are the bid-winning probability and financial profitability of the project. In Indian BOT highway projects, the grant sought from the government is the sole bid variable that determines the successful concessionaire. A higher grant, although ensuring increased chances of winning the concession, would also lead to significant cash outflows adversely affecting the profitability of the project. The profitability of the project is also a function of debt-equity structure, which is determined by using financial engineering techniques. Hence, from the private investors’ point of view, a systematic model for optimizing the bid-winning potential and capital structure is needed, which would assist the project sponsors in bidding and financing decisions. Prior researches in this area have considered these optimization issues in a fragmented manner. This paper presents a genetic-algorithm (GA)-based model that yields a set of optimal solutions for the key decision variables: grant, debt, and equity. The proposed model, demonstrated through a real life BOT highway project, can aid the private investors in fast and efficient decision-making.

Evaluating Public-Private Partnership Organizational Alternatives for Existing Toll Roads

Christopher J. Ahmadjian, M.ASCE and John Collura, M.ASCE

J. Manage. Eng. 28, 114 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000086 (6 pages)

Online Publication Date: 15 March 2012

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Public-private partnership (P3) agreements on existing toll roads in the United States have raised critical questions pertaining to the true costs and benefits associated with these agreements for all stakeholders. Of particular concern is an apparent reliance on monetary calculations alone to determine toll road lump-sum value. This primary focus on monetary considerations appears to neglect a number of nonmonetary variables associated with potential benefits and costs. The objective of this paper is to present a four-step process that uses two analytical methods to assess the benefits, costs, and other impacts associated with P3 organizational alternatives. The first analytical method uses cash-flow diagrams to calculate the net present value (NPV) for each P3 alternative. The second method weighs the relative importance of quantitative and qualitative (nonmonetizable) variables. Four distinct groups of variables form the basis of the two analytical methods: monetary, monetizable, quantitative, and qualitative. The last two groups represent variables that are nonmonetizable. It is these variables that can reflect the much larger stewardship role that government plays in society. The primary user of these analytical methods is identified as the public sector decision maker who has been asked to make recommendations regarding different organizational alternatives for toll road operation.

Measuring Bridge Construction Efficiency Using the Wireless Real-Time Video Monitoring System

Yong Bai, F.ASCE, Jun Huan, and Seonghoon Kim

J. Manage. Eng. 28, 120 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000061 (7 pages)

Online Publication Date: 11 July 2011

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To enhance the efficiency of bridge construction, the wireless real-time video monitoring system (WRITE) was developed. Utilizing the advanced technologies of computer vision and artificial neural networks, the developed system first wirelessly acquired a sequence of images of work-face operations. Then human pose analyzing algorithms processed these images in real time to generate human poses associated with construction workers who performed the operations. Next, a portion of the human poses were manually classified into three categories as effective work, contributory work, and ineffective work and were used to train the built-in artificial neural networks (ANN). Finally, the trained neural networks were employed to decide the ongoing laborers’ working status by comparing the in coming images to the developed human poses. The developed system was tested for accuracy on a bridge construction project. Results of the test showed that efficiency measurements by the system were reasonably accurate when compared to the measurements produced by the manual method. Thus, the success of this research indicates promise for enabling project managers to quickly identify work-face operation problems and to take actions immediately to address these problems.

Web-Based Project Management Framework for Dredging Projects

Mirosław J. Skibniewski, M.ASCE and Gustavo A. Vecino

J. Manage. Eng. 28, 127 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000070 (13 pages)

Online Publication Date: 2 May 2011

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This paper describes a project management framework for dredging projects (PMFD) developed to facilitate the performance of dredging projects. The framework uses established project management techniques, a Web-based project management system (WPMS) environment, the Project Management Institute’s project management body of knowledge project life-cycle concept, and a project delivery system commonly used to procure dredging projects to analyze and optimize project management processes in dredging operations. These processes are intended to be aligned with the project contracting organization’s business rules to create a practical framework to manage the project. The presented framework addresses WPMS limitations reported in previous research. The paper describes the principles of applying the PMFD to the management of dredging projects. Finally, the paper presents a case study describing a specific project scenario to illustrate the application of the principles and provides a cost-benefit analysis for the implementation of the WPMS. This presented framework can be adapted to manage other types of construction projects, and it may be implemented by a project owner who supervises and controls an entire project life cycle.

Proposed System for Measuring Project Performance Using Process-Based Key Performance Indicators

Tatsiana Haponava and Saad Al-Jibouri

J. Manage. Eng. 28, 140 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000078 (10 pages)

Online Publication Date: 29 June 2011

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Despite some evidence of its usefulness, performance measurement by using Key Performance Indicators (KPIs) in the construction industry also has its critics. Among the shortcomings attributed to existing KPIs is the fact that almost all of them are product oriented. This means that the indicators are mostly used for review purposes after a project is completed and do not provide the opportunity to control the work whilst the project is still in progress. Many researchers have agreed on the need for a new approach that considers the construction process and allows active control. This paper describes the design of a proposed generic system for measuring process performance. As a basis for measuring process performance, the proposed measurement system relies on a series of questions related to both process completeness and process quality. The structure of the measurement system is on the basis of the findings of an earlier stage of the research that had resulted in the development of a number of process-based KPIs and the key issues they encompass. The appropriateness of the proposed measurement system has been tested on two on-going projects. The testing has shown that the proposed system produces relatively accurate indications of actual performance of construction projects. In this research, it was not possible to test the validity or the effectiveness of the proposed measurement system for control in practice. This is because of the long timescales involved in real-life projects and because of the possible influence of control actions taken by project management between the various processes.

Ant Colony Optimization for Multimode Resource-Constrained Project Scheduling

Hong Zhang

J. Manage. Eng. 28, 150 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000089 (10 pages)

Online Publication Date: 24 August 2011

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An ant colony optimization (ACO)-based methodology for solving a multimode resource-constrained project scheduling problem (MRCPSP) with the objective of minimizing project duration is presented. With regards to the need to determine sequence and mode selection of activities for the MRCPSP, two levels of pheromones for each ant are proposed to guide the search course in the ACO algorithm. The corresponding heuristics and probabilities for each type of the pheromone are considered, and their calculation algorithms are presented. The flowchart of the proposed ACO algorithm is described, where a serial schedule generation scheme is adopted to transform an ACO solution into a feasible schedule. The effectiveness and efficiency of the proposed ACO methodology are justified through a series of computational analyses. The study is expected to provide a more effective alternative methodology for solving the MRCPSP by utilizing the ACO theory.

IOP Tool: Assessing the Benefits and Hindrances of Information Integration Implementation Opportunities

Youngcheol Kang, M.ASCE, William J. O’Brien, M.ASCE, and James T. O’Connor, M.ASCE

J. Manage. Eng. 28, 160 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000066 (10 pages)

Online Publication Date: 27 August 2011

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This paper presents a tool assessing the benefits and hindrances of specific information integration opportunities (IOP) identified by firms for potential implementation. Firms face numerous choices about which of many potential information integration opportunities to pursue. However, they lack guidance in selecting opportunities and preparing for successful implementation. In addition, there are many nontechnical factors that need to be considered for successful implementation of information integration. The tool, developed by an industry research team consisting of 15 members from leading contractors, construction clients, and academia in the U.S., uses 37 benefit driver and 34 implementation hindrance questions that are scored to provide an assessment of a specific integration opportunity. The questions in the tool take market/legal, organizational and process, and people-related issues pertinent to the implementation of information integration into account. The tool has been applied to 16 test cases and is shown to adequately address key benefits and challenges, helping guide implementation choices.

Information Management in UK-Based Architecture and Engineering Organizations: Drivers, Constraining Factors, and Barriers

Abdullahi Sheriff, Dino Bouchlaghem, Ashraf El-Hamalawi, M.ASCE, and Steven Yeomans

J. Manage. Eng. 28, 170 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000085 (11 pages)

Online Publication Date: 20 August 2011

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The need to improve collaborative working, knowledge sharing, and operational effectiveness has made effective Information Management a growing priority for Architecture and Engineering (A & E) organizations in the UK construction industry. While significant research has been carried out in the construction industry on project Information Management, limited work has been carried out to understand Information Management from an organisational paradigm. This paper presents the findings of an investigation into the nature of Information Management within A & E organizations in the UK construction industry. Interviews were conducted with experts across nine large architectural and multidisciplinary consultancies, the outputs of which were analysed using thematic analysis. From this, 26 themes across three core categories classed as drivers, constraining factors, and barriers which shape Information Management practices in construction organizations emerged. The findings show that Information Management is indeed of strategic significance to organizations and an organizational dimension is necessary to better align information needs with an organisation’s operational processes. They also show that context-dependent factors exist which shape the nature of Information Management in line with the specific needs of each organizations. Therefore, the effectiveness of an organisation’s Information Management practices is not absolute, but rather relative to its level of alignment to the organisation’s chosen mode of operation. The findings provide a much needed practical view of the complexities of Information Management, highlighting that particularly within multidisciplinary organizations; a unifying approach is much more practical and appropriate than a single approach to managing information.

Fuzzy Set Theory Approach for Measuring the Performance of Relationship-Based Construction Projects in Australia

John F. Y. Yeung, Albert P. C. Chan, and Daniel W. M. Chan, M.ASCE

J. Manage. Eng. 28, 181 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000083 (12 pages)

Online Publication Date: 1 August 2011

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Research into performance measures for relationship-based construction projects becomes crucial because of an increasing trend of client organizations to adopt a relationship-based (or relational contracting) approach to their construction projects worldwide over the last decade. However, few, if any, comprehensive and systematic research studies focus on developing a comprehensive, objective, reliable, and practical performance evaluation model for relationship-based construction projects. A performance index (PI), which comprises eight weighted key performance indicators (KPIs) and a set of corresponding quantitative indicators (QIs) for measuring the performance of relationship-based construction projects have been developed in Australia. The PI and QIs can assist in developing a benchmark for measuring the performance of relationship-based construction projects. However, the establishment of a set of QIs cannot fully solve the subjectivity of performance evaluation. To remedy this deficiency, the aim of this paper is to adopt a fuzzy set theory (FST) approach to establish a well-defined range of quantitative requirements (QRs) for each QI within each of the five performance levels. By using the modified horizontal approach, fuzzy membership functions (FMFs) have been constructed through three various methods, namely constrained regression line with the vertical error method (VEM), the horizontal error method (HEM), and the bisector error method (BEM). It was shown that the results derived from the three methods were similar, and it seems that the BEM is the best technique to construct the FMFs because it considers both the errors created by the residual sum of squares by both vertical and horizontal distances. The newly developed performance evaluation model is not only innovative in nature, but it can also improve the objectiveness, reliability, and practicality in evaluating the performance of relationship-based construction projects.

Motivating Knowledge Sharing in Engineering and Construction Organizations: Power of Social Motivations

Amy Javernick-Will, A.M.ASCE

J. Manage. Eng. 28, 193 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000076 (10 pages)

Online Publication Date: 10 June 2011

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Knowledge management initiatives have proliferated in recent years because of the desire to have employees share their knowledge throughout the organization. However, in practice, many of these initiatives fail to achieve their initial goals. Because knowledge fundamentally resides with people, knowledge management research and initiatives must move from a focus on macrolevel variables at the organizational level to include an understanding of microlevel variables at the individual level of why employees engage in these knowledge management initiatives. This research aims to understand participation in organizational knowledge sharing by identifying and exploring the reasons why employees share their knowledge. This is done through qualitative case studies with 48 employees in 13 multinational engineering, construction, and real estate development firms. Using an embedded unit of analysis of knowledge sharing motivations of employees, a qualitative analysis revealed four primary factors related to knowledge sharing: resources, intrinsic motivations, global incentives, and social motivations. The overwhelming majority of responses pertained to social motivations, including reciprocity, conformity to corporate culture, mimicking the behavior of leaders, peer recognition, honoring knowledge sharing commitments, and perceptions of the value of organizational knowledge. These results add to existing literature by identifying microlevel variables of employees’ motivations for knowledge sharing and moving from a focus on barriers to knowledge sharing to a focus on the factors that facilitate knowledge sharing. The results also suggest organizational strategies that may help to address employee motivations and increase knowledge sharing within organizations.

Safety-Knowledge Management in American Construction Organizations

Matthew R. Hallowell, A.M.ASCE

J. Manage. Eng. 28, 203 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000067 (9 pages)

Online Publication Date: 25 April 2011

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Despite improvements in safety performance over the past 30 years, the construction industry still accounts for an injury-and-illness rate that is approximately five times greater than the all-industry average. This disproportionate injury-and-illness rate has been attributed, in part, to the complex, dynamic, and transient nature of construction projects. To address these challenges, construction organizations must be able to adapt to change by effectively identifying, capturing, storing, and transferring safety knowledge. To investigate how safety-knowledge management strategies are employed in the construction industry, 11 case studies were conducted with a geographically dispersed sample of American general contractors. The sample was stratified by experience modification rate (EMR), a relative measure of safety performance. The results of the case studies indicate that construction organizations tend to acquire safety knowledge from a variety of internal and external sources, but have ineffective knowledge storage and transfer systems, which impede the ability of the workforce to obtain critical knowledge to solve urgent safety-related problems. High-performing organizations were distinguished by their ability to manage tacit safety knowledge with formal processes such as data-entry systems that capture reactions to safety situations from experienced workers and safety mentoring. Other innovative strategies include acquiring tacit safety knowledge during safety stand-downs through interviews with workers and storing safety knowledge in proprietary training videos.

Market Structure and Organizational Performance of Construction Organizations

Hyung-Jin Kim, A.M.ASCE and Kenneth F. Reinschmidt, M.ASCE

J. Manage. Eng. 28, 212 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000082 (9 pages)

Online Publication Date: 3 August 2011

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The structure of a market can be described by how the market is composed of firms of different sizes and how these firms are diversified into different subsectors. In construction, few empirical studies exist on organizational performance at the industry level considering market structure. This paper presents a study investigating the market structure of the construction industry and the organizational performance of large contractors and design firms, focusing on size, growth rate, business stability, and market diversification. The study performs an empirical analysis using publicly available U.S. construction industry data. Four hypotheses were tested to determine relationships among strategic management issues and organizational performance. The study identifies particular patterns and similarities and differences in market structure between contractors and design firms and provides a new finding on market diversification—the existence of certain thresholds at which a firm’s diversification level significantly changes as the firm grows. An analysis on organizational performance concludes that firm growth is independent of firm size, whereas market diversification contributes to a firm’s business stability but not significantly to firm growth.
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Lean Techniques in the Management of the Design of an Industrial Project

Abhijeet S. Deshpande, Ph.D., A.M.ASCE, Larry E. Filson, Ossama M. Salem, M.ASCE, P.E., and Richard A. Miller, P.E.

J. Manage. Eng. 28, 221 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000065 (3 pages)

Online Publication Date: 12 April 2011

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Lean production techniques developed by Toyota Motor Corporation have been widely applied in the manufacturing sector to reduce waste, ensure just-in-time delivery, create effective value streams, and ensure continuous improvement. Over the last two decades, significant efforts have been made to develop the theoretical foundation and practical tools to implement these techniques in the construction process. The construction process is similar to production, in that it involves the assembly of raw materials into a product. The design process, on the other hand, involves conversion of the client’s requirements into manufacturing instructions using creativity and technical knowledge. This makes it challenging to implement the principles of lean production directly to design. This technical note presents the techniques used by a midsize industrial construction contractor: purpose built facility, making decisions at the last responsible moment, lean audits, and 5S in the design of industrial projects to encapsulate and implement techniques of lean production in the management of design.

Evaluating Award-Winning BIM Projects Using the National Building Information Model Standard Capability Maturity Model

Tamera L. McCuen, Patrick C. Suermann, Ph.D., and Matthew J. Krogulecki

J. Manage. Eng. 28, 224 (2012); http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000062 (7 pages)

Online Publication Date: 23 March 2011

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The National Building Information Model Standard (NBIMS) Capability Maturity Model (CMM) is a tool useful for the strategic management in the implementation of building information modeling (BIM) for an organization. This article paper presents the CMM application and evaluations of case studies from 2008 award-winning BIM projects in the United States. The research assessed the 2008 American Institute of Architects Technology in Architectural Practice (AIA-TAP) BIM Award winners according to the National BIM Standard Interactive Capability Maturity Model (I-CMM) tool. Findings from the evaluations indicated that the winning submittals continued historical success in the area of visualization, whereas opportunities for virtual analysis and other critical areas still remain relatively unexplored, even in the “best BIMs in the world.”
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