Factors affecting the fluctuation of labour productivity in the construction projects

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Bui Trung Kien FACTORS AFFECTING THE FLUCTUATION OF LABOUR PRODUCTIVITY IN THE CONSTRUCTION PROJECTS MASTER OF BUSINESS (Honours) Ho Chi Minh City - 2012 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Bui Trung Kien FACTORS AFFECTING THE FLUCTUATION OF LABOUR PRODUCTIVITY IN THE CONSTRUCTION PROJECTS ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr CAO HAO THI Ho Chi Minh City - 2012 i ACKNOWLEDGMETS Firstly, I would like to express my deepest appreciation to my supervisor Dr Cao Hao Thi for his professional guidance, valuable advice, continuous encouragement, and motivated support that made this thesis possible I would like to extend deep senses of gratitude to Prof Nguyen Dinh Tho and lecturers who have taught and transferred me valuable knowledge and experience during the period of Master of Business course at International School of Business Special thanks, to all of my dear friends in MBUS 2010 class, who gave me useful material, response and experience to conducting this study I would like to express my grateful thanks to my friends and all the construction company in Vietnam who participated in filling the questionnaires and provided the valuable information for this study Personally, I wish to express my deep gratitude to my parents, my wife, sister and brother for their spiritual support and encouragement during the time of study Ho Chi Minh City, Vietnam, 12 Dec 12 Bui Trung Kien ii ABSTRACT Productivity has an important role to help construction companies to be competitive, achieve set goals, meet stakeholder and value propositions The objectives of this research are to identify the factors affect to the Labor Productivity Fluctuation in construction project in Vietnam, to access the impact strength of influenced factors on the fluctuation of labor productivity and to suggest recommendations to reduce the fluctuation of labor productivity The objective of this study have been achieved through study 233 questionnaires and the results of analysis of 46 variables considered in questionnaire show that, there are five main factors positively affect to Labor Productivity Fluctuation in construction project They are Supervision factor, Motivation factor, Workforce factor, Material/Equipment factor and Schedule factor After conducting Multiple Linear Regression and ANOVA analysis, the model of study have been indentified which could explains 68.7 % of the total variance in Labor Productivity Fluctuation and ANOVA testing result also shows that there are significant different among project characteristic group on LPF The results of this study recommend that construction companies have to conduct labour productivity study in their project to reduce Labour Productivity Fluctuation It is important to have training program to increase labour skill, improve labor commitment and the relationship among worker by increasing labor benefit and team building program It also suggested that the planning software should be used in the project to have a good planning work to reduce the frequency of working overtime and make the labor more productivity iii TABLE OF CONTENT ACKNOWLEDGMETS i ABSTRACT ii TABLE OF CONTENT iii LIST OF FIGURES vii LIST OF TABLES viii LIST OF ABBREVIATIONS x CHAPTER 1: INTRODUCTION .1 1.1 Statement of the problem 1.2 Objective of the study 1.3 Scope of the study 1.4 Research contribution 1.5 Research Structure CHAPTER 2: LITERATURE REVIEW 2.1 Definition related to project and project management 2.1.1 Project 2.1.2 Project Management 2.2 Definitions related to productivity 2.2.1 Productivity 2.2.2 Labor Productivity 2.2.3 Total Productivity iv 2.2.4 The formulation for the fluctuation of labor productivity 2.2.5 Construction productivity 10 2.3 Factors affecting construction productivity 10 2.4 Factor and indicators affect to labour productivity fluctuation 17 2.4.1 Factor related to workforce 17 2.4.2 Factor related to management team 18 2.4.3 Factor related to motivation 18 2.4.4 Factor related to schedule compression 19 2.4.5 Factor related to material/equipment 20 2.4.6 Factor related to supervision 22 2.4.7 Factor related to safety 23 2.5 Project characteristics 24 2.6 Conceptual framework 25 CHAPTER 3: METHODOLOGY 27 3.1 Research process 27 3.2 Sampling design 28 3.2.1Population 28 3.2.2 Sample size 28 3.3 Measurement scales 29 3.4 Questionnaire design 29 3.5 Pilot survey 30 v 3.6 Data collection 31 3.7 Descriptive statistics 31 3.8 Reliability analysis 31 3.9 Exploratory analysis 32 3.10 Multiple regression analysis 32 3.11 ANOVA analysis 32 CHAPTER 4: DATA ANALYSIS 33 4.1 Sample descriptive statistics 33 4.2 Reliability analysis 36 4.3 Exploratory factor analysis 39 4.4 Revised the research model 43 4.5 Multiple regression analysis 44 4.5.1 Correlation testing 44 4.5.2 Multiple linear regression analysis 45 4.5.2.1 Theory model 45 4.5.2.2 Result on the linear regression analysis 45 4.5.3 Hypothesis testing 47 4.5.4 One-Way ANOVA Analysis in project characteristic 49 4.5.4.1 One-Way ANOVA testing in type of project 49 4.5.4.2 One-Way ANOVA testing in project ownership 51 4.5.4.3 One-Way ANOVA testing in project budget 53 vi 4.5.5 Results of ANOVA testing on project characteristics 53 4.6 Summary of data analysis result 53 CHAPTER 5: RECOMMENDATION AND CONCLUSION 55 5.1 Research finding 55 5.2 Managerial implications 56 5.3 Limitations and future research 57 APPENDICES 61 Appendix A: Questionnaire (English Version) 63 Appendix B: Questionnaire (Vietnamese Version) 69 Appendix C: First time running- Eigenvalues 76 Appendix D: First Time Running – Factor Loadings 77 Appendix E: Charts of Multiple Regression Analysis 79 vii LIST OF FIGURES Figure 2.1: Factor model of construction labor productivity 11 Figure 2.2: Factors that are statistical significant 12 Figure 2.3: External affects to construction on-site productivity 13 Figure 2.4: Internal affects to construction on-site productivity 13 Figure 2.5: Workforce factor and LPF 19 Figure 2.6: Management team factor and LPF 19 Figure 2.7: Motivation factor and LPF 20 Figure 2.8: Schedule compression factor and LPF 21 Figure 2.9: Material/Equipment factor and LPF 22 Figure 2.10: Supervision factor and LPF 23 Figure 2.11: Safety factor and LPF 24 Figure 2.12: Conceptual framework 25 Figure 3.1: Research process 27 Figure 4.1: Revised conceptual model 43 Figure 4.2: Final research model 53 viii LIST OF TABLES Table 2.1: Factor affecting on construction workforce productivity 14 Table 2.2: Factor affecting on labor productivity 16 Table 4.1: Mode of data collection 33 Table 4.2: Distribution of respondents’ position 34 Table 4.3: Type of project 34 Table 4.4: Ownership of project 35 Table 4.5: Total budget of project 35 Table 4.6: Rejected variables 36 Table 4.7: Reliability analysis result 37 Table 4.8: KMO and Bartlett's Test 40 Table 4.9: Total variance explain of factor analysis 40 Table 4.10: Factor analysis results 41 Table 4.11: Correlation analysis result 44 Table 4.12: Model summary of multiple linear regression analysis 46 Table 4.13: ANOVA of multiple linear regression analysis 46 Table 4.14: Coefficient of multiple linear regression analysis 47 Table 4.15: Hypothesis summary 49 Table 4.16: Descriptive for type of project group 50 Table 4.17: ANOVA for type of project group 50 Table 4.18: Descriptive for project ownership group 51 66 I Workforce factor Strongly Strongly (Low productivity because of variable below) disagree agree Lack of skill and experience of the 7 workers Lack of empowerment (training and resourcing) High workforce absenteeism High workforce turnover Low labour morales/commitment Increase of labourer age 7 Poor health of the workers Poor relations among workers II Management Team (Low productivity because of variable below) Bad leadership skill Strongly Strongly disagree agree 7 11 Lack of labor surveillance 12 Lack of periodic meeting with labor 10 Poor relations between labor and superintendents III Motivation (Low productivity because of variable below) Strongly Strongly disagree agree 13 Late payment 14 Low amount of pay 15 Little or no welfare 16 Little or no financial rewards 67 17 Lack of labor recognition program 18 Poor condition of camping 19 Lack of place for eating and relaxation IV Schedule Compression (Low productivity because of variable below) 20 Working days per week without taking Strongly Strongly disagree agree 21 Frequency of working overtime 22 Shift work 23 Poor work planning a holiday 24 Overcrowding V Material/equipment (Low productivity because of variable below) Strongly Strongly disagree agree 25 Material shortages 26 Low quality of raw material 27 Unsuitable material storage location 28 Lost time to find material because of 29 Equipment and tools shortages 30 Poor condition of equipment and tools poor arrangement VI Supervision (Low productivity because of variable below) Strongly Strongly disagree agree 31 Poor or no supervision method 32 Incompetent supervisors 33 Changing of foreman 34 Changing order 35 Incomplete/revise drawing 68 36 Inspection delay 37 Rework 38 Supervisors’ absenteeism VII Safety (Low productivity because of variable below) Strongly Strongly disagree agree 39 Ignore safety precaution 40 Accident 41 Inadequate lighting 42 No have safety engineer on site 43 Noise 44 Unsafe working conditions 45 Inadequate safety plan 46 Lack of labor safety C RESPONDENTS INFORMATION Please write down some personal information (if possible) Name: ………………………………… Date of birth: ………………… Phone: ………………………………… Email: ……………………………… Company: …………………………………………………………………… Jobtitle: …………………………………………………………………………… Do you want to have the research result? Thanks you for your kind cooperation! Bui Trung Kien 69 Appendix B: Questionnaire (Vietnamese Version) Th Ng Th a Ơng /Bà, Tơi tên Bùi Trung Kiên, hi n h c viên cao h c ngành Qu n Tr Kinh Doanh khóa 2010 c a Vi n hi n T o Qu c T - Tr tài nghiên c u v Các y u t ng nh h d án xây d ng Ph m vi nghiên c u i H c Kinh T Tp HCM Tôi ang th c ng n s bi n ng n ng su t lao ng c gi i h n cho nh ng d án xây d ng Vi t Nam Chúng r t mong c s h tr c a quý Ông/Bà b ng vi c tr l i nh ng câu h i c ính kèm T t c d li u thu th p thuy t nghiên c u c t Chúng t qu nghiên c u s ch a quý Ông/Bà s c s ch dùng cho vi c ki m tra nh ng gi m b o v i Ơng/Bà r ng thơng tin trình bày d ng th ng kê t t c thông tin cá nhân ho c c quan c l u gi bí m t t qu nghiên c u c a tài s c g i cho b t c q Ơng/Bà quan tâm thơng qua email ho c cách khác thu n ti n nh t cho quý v Trân tr ng kính chào Chân thành c m n quý Ông/Bà ã dành th i gian n câu h i, cho phép Bùi Trung Kiên Tel: 0906 609977 Email: tkvl02@yahoo.com tr l i c g i l i chúc s c kho , thành công h nh phúc 70 ng d n : tr l i nh ng câu h i d i ây, Ông/Bà liên t ng n m t d án c th ã hoàn thành mà Ông/Bà ã tham gia kho ng th i gian 10 n m g n ây Vui lòng tr l i câu h i b ng cách ánh d u (X) vào ( ) mà Ơng/Bà ch n ho c n vào câu tr l i vào n i thích h p A THƠNG TIN T NG QT V D ÁN 1.Ơng bà vui lịng cho bi t tên d án: ……………………………… ……………………………………………………………………………………… V trí c a ông bà d án ã tham gia ? Giám sát c a Ch Giám ut c/ Phó Giám Ch huy tr c d án ng Giám sát i tr ng thi cơng Khác (Vui lịng ghi rõ):………………………………………………………… Lo i hình d án? Xây d ng dân d ng công nghi p Xây d ng c u ng Xây d ng c ng cơng trình th y Xây l p Khác (Vui lòng ghi rõ):………………………………………………………… Hình th c ch u t d án Doanh nghi p nhà n Công ty liên doanh c 71 Doanh nghi p n c ngồi Cơng ty t nhân Khác (Vui lòng ghi rõ):………………………………………………………… a m c a d án (Vui lòng ghi rõ) :………………………………………… ……………………………………………………………………………………… T ng ngân sách cho d án T 500.000 USD t i tri u USD T tri u USD T 10 tri u USD n 10 tri u dollas n 20 tri u USD L n h n 20 tri u USD u Ông/Bà qu n lý tồn b d án ho c có vai cao c p d án Ơng/Bà vui lịng tr l i câu h i s 7 T ng s gi công lao ng th c t c a d án t ng s gi công lao ng ho ch a d án ng s gi công lao ng th c t c a d án: ………………………………… gi ng s gi công lao ng Trong tr ho ch c a d án: …………… …………… gi ng h p Ông/Bà khơng nh c t ng s gi cơng lao Ơng/Bà có th cho bi t ph n tr m l ch gi a T ng s gi công lao án T ng s gi công lao ng c a d án ng th c t c a d ng k ho ch c a d án ……………………% u Ông/Bà ph trách ho c giám sát m t gói th u ho c gói cơng vi c d án ơng bà vui lịng tr l i câu h i s 8 T ng s gi công lao công lao ng ng th c t c a gói th u ho c gói cơng vi c T ng s gi ho ch c a gói th u ho c gói cơng vi c d án ng s gi công lao ng th c t c a gói th u ho c gói cơng vi c ….……… gi 72 ng s gi công lao Trong tr ng ho ch c a gói th u ho c gói cơng vi c .…… gi ng h p Ơng/Bà không nh c T ng s gi công lao ng c a gói th u ho c gói cơng vi c Ơng/Bà có th cho bi t ph n tr m l ch gi a T ng s gi cơng lao ng ng th c t c a gói th u ho c gói cơng vi c T ng s gi cơng lao ho ch c a gói th u ho c gói cơng vi c mà ơng bà tham gia …………………… % B THÔNG TIN V NG SU T LAO Có y u t tác kê b ng d NH H NG N S BI N NG NG ng i NH NG NHÂN n s bi n a vào m t d ng n ng su t lao ng g m 46 bi n s án ho c gói cơng vi c c th Ơng/Bà vui lòng cho bi t m c ng ý c a Ông/Bà c li t ã hoàn thành, i v i phát bi u sau ây ng cách ánh d u (X) vào ( ) thích h p nh t ng ý c a Ông/Bà c o b ng thang o m t Hoàn toàn ph n i n ng ý Hồn tồn khơng I L c l ng ý ng lao Không ng ý i không Trung dung ng ng ý t ng ý ý ng d án/gói cơng vi c Hồn tồn Khơng thi u k n ng kinh nghi m c a ng lao i ng ý mà ông bà ã tham gia i R t ng ý ng ý 7 ng Thi u công tác t o ng Ng i lao i lao ng v ng m t nhi u ng t 73 l lao ng ngh vi c cao Ng i lao ng thi u tinh th n trách nhi m Tu i c a ng i lao ng t ng cao c kho c a ng i lao ng i quan h gi a ng II i ng qu n lý d i lao ng Thi u k n ng lãnh 10 i quan h gi a ng 7 7 án/gói cơng vi c Hồn tồn mà Ơng/Bà ã tham gia Không o R t ng ý ng ý i lao ng giám sát i lao ng 7 không t t 11 Thi u s giám sát ng 12 Thi u cu c h p III Y u t v nh k v i ng i lao ng l c làm vi c c a ng ng i lao Hồn tồn ng d án/gói cơng vi c mà ông bà ã Không R t ng ý ng ý tham gia 13 Thanh toán l 7 15 Phúc l i xã h i th p ho c khơng có 16 Th 7 7 14 ng tr ng th p ng th p ho c khơng có th 17 Thi u ch ng 18 i lao ng trình ghi nh n thành tích c a ng u ki n n i công tr 19 Thi u ch tr ng ng n u ng ngh tr a công ng IV Y u t v Áp l c ti n c a d án/ gói cơng Hồn tồn vi c mà ông bà ã tham gia 20 Làm vi c ngày m t tu n mà khơng có ngày Khơng R t ng ý ng ý 7 ngh 21 Hay làm thêm gi 74 22 Làm vi c theo ca nhi u 23 7 ho ch làm vi c 24 Tình tr ng q ơng ng tr i lao ng công ng V Y u t v V t t /thi t b d án/gói Hồn tồn cơng vi c mà ơng bà ã tham gia Không R t ng ý ng ý 25 Thi u v t t 26 Ch t l ng v t t 27 Kho ch a v t t v trí khơng phù h p 28 tìm v t t s p x p v t t 7 n th i gian không phù h p 29 Thi u máy móc ho c thi t b 30 thi công u ki n c a máy móc thi t b `VI Cơng tác Giám Sát d án/gói cơng Hồn tồn vi c mà ơng bà ã tham gia 31 Khơng có ph Khơng ng ý ng ý i giám sát ng thi công 7 36 Vi c ki m tra b trì hỗn nhi u 37 7 ph ng pháp giám sát ho c R t ng pháp giám sát không t t 32 thi u n ng l c c a ng 33 Th ng thay i 34 Th ng thay i th t công vi c 35 i tr n v khơng hồn ch nh ho c s a ib nv nhi u a ch a, làm l i nhi u 38 Giám sát th ng xuyên v ng m t VII Y u t An Toàn d án/gói cơng vi c Hồn tồn mà ơng bà ã tham gia 39 Không 40 Tai n n th ý n c nh báo an tồn lao ng xun Khơng ng R t ng ý ng ý 7 75 41 Thi u ánh sáng n i thi cơng 42 Khơng có k s an tồn cơng tr 43 Cơng tr ng ng có nhi u ti ng n 7 44 u ki n làm vi c khơng an tồn 45 ho ch an tồn khơng phù h p 7 46 Thi u trang b b o h lao ng C THÔNG TIN CÁ NHÂN Ông/Bà xin vui lịng tr l i cá thơng tin sau (N u có th ) nghiên c u n q Ơng/Bà n u ti n cho vi c g i k t qu c yêu c u tên : ………………………………………… N m sinh : …………………… n Tho i : …………………………………… Email : ……………………… n v công tác :……………………………… ………………………………… Ch c v hi n t i :………………………………………………………………… Ơng bà có mu n g i l i k t qu nghiên c u hay khơng (Có/khơng)……………… Trân tr ng cám n s giúp Bùi Trung Kiên c a quý Ông/Bà ! 76 Appendix C: First time running- Eigenvalues Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Cumulative Variance % Total % of Cumulative Variance % Total % of Cumulative Variance % 11.206 28.014 28.014 11.206 28.014 28.014 4.930 12.324 12.324 3.963 9.907 37.922 3.963 9.907 37.922 4.624 11.561 23.885 2.823 7.059 44.980 2.823 7.059 44.980 3.766 9.414 33.299 2.520 6.301 51.281 2.520 6.301 51.281 3.676 9.191 42.490 2.237 5.592 56.874 2.237 5.592 56.874 3.550 8.875 51.365 1.743 4.358 61.232 1.743 4.358 61.232 3.547 8.869 60.233 1.063 2.659 63.891 1.063 2.659 63.891 1.463 3.657 63.891 990 2.475 66.365 980 2.450 68.815 10 940 2.349 71.164 11 892 2.230 73.394 12 790 1.975 75.369 13 717 1.792 77.161 14 691 1.729 78.889 15 671 1.678 80.567 16 653 1.632 82.199 17 590 1.476 83.675 … … … … 29 267 669 95.455 30 237 593 96.048 31 227 567 96.615 32 205 513 97.127 33 195 488 97.616 34 184 460 98.076 35 182 455 98.531 36 152 380 98.911 37 138 346 99.257 38 113 283 99.540 39 108 270 99.811 40 076 189 100.000 Extraction Method: Principal Component Analysis 77 Appendix D: First Time Running – Factor Loadings Component V.2.3 788 V.6.4 766 V.6.6 747 V.6.2 688 V.6.5 687 V.6.7 679 V.2.4 587 V.6.1 504 V.7.8 770 V.7.6 722 V.7.5 716 V.7.7 710 V.7.4 644 V.7.2 628 V.7.1 V.3.3 762 V.3.6 752 V.3.5 741 V.3.4 733 V.3.2 716 V.3.1 619 V.1.5 744 V.1.1 734 V.1.4 730 V.1.8 706 V.1.2 642 V.2.1 522 V.4.5 820 V.4.1 819 V.4.3 792 V.4.2 780 V.4.4 748 V.5.3 842 V.5.4 751 V.5.5 635 V.5.6 619 V.5.2 612 78 V.5.1 584 V.1.7 V.7.3 784 536 562 79 Appendix E: Charts of Multiple Regression Analysis Figure E1: Histogram of Labor Productivity Fluctuation Figure E2: Normal P-P Plot of Labor Productivity Fluctuation 80 Figure E3: Scatterplot of Labor Productivity Fluctuation ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Bui Trung Kien FACTORS AFFECTING THE FLUCTUATION OF LABOUR PRODUCTIVITY IN THE CONSTRUCTION PROJECTS ID:... identify factors affecting to the fluctuation between real and planed labor productivity of construction projects - To assess the impact strength of these factors on the fluctuation of labor productivity. .. necessary to conduct the topic Factors Affecting the Fluctuation of Labor Productivity in the Construction Projects 1.2 Objective of the study This study is conducted to achieve the following objectives