Identification of delay factors in ready mixed concrete operation at the south of vietnam

OPEN UNIVERSIZY MASTER THESIS: IDENTIFICATION OF CRITICAL DELAY FACTORS IN READY-MIXED CONCRETE PLANT OPERATION AT THE SOUTH OF VIETNAM 1P.UM TRƯỜNG ĐẠI HỘC tổ i THƯ VIỆN Submitted in partial fulfillment of the requirement for the - VU THIEU TUAN November 2011 Master in Industrial Business Management Project Supervisor: Prof JACQUES MARTIN TO EUROMED ĐÃ Bode MANAEEMENT bi EUROMED TOULON.— HCMC MIBM-01 '° Acknowledgement OU > x5 $ Vu Thieu Tuan : ỷ I would like to thank all people who have helped and inspired me during my study Firstly, I would like to express my sincere gratitude to my supervisor Professor Dr Jacques Martin for the continuous support of my Doctoral research, for his ” patience, motivation, enthusiasm, and immense knowledge His guidance helped me in all the time of research and writing of this thesis Secondly, staff of Hochiminh city open university, particularly Ms Nguyen Thi Viet Ha, deserves special thanks for their support and coordination during MIMB-1 program Thirdly, I am grateful to academic staff of Toulon University, especially Dr.Hillary Collins as program director who shared useful knowledge and experience in research methodology courses Fourthly, my sincere thanks also go to all survey respondents for providing me with essential information and data for my research - Last but not least, my deepest gratitude goes to my parents for giving birth to me at the first place and supporting me spiritually throughout my life Vu Thieu Tuan ” eB ED | | MANAGEMENT TOULON — HCMC MIBM-O1 Vu Thieu Tuan OU 'Á „ở Abstract Due to the development of construction in Vietnam, Demand of Ready-mixed concrete products T#NN ApQ Đen" EUROMED are booming up Ready-mixed concrete (RMC) industry is low margin business Thus, operating cost is a competitive advantage However, there are many factors lead to delay in the ready-mix concrete plant operation which reduce productivity and increase operating cost This study focuses on identify on delay factors in the ready-mixed concrete operation then suggest recommendation to minimize their effect 16 delay factors have been detected from literature review Data on opinion about these delay factors were collected from people involving readymixed concrete industry at the South of Vietnam to discovery the delay factors Descriptive statistic, factor analysis and reliability test have been used to point out the most critical delay factors Results show that delays due to “management problems” and “unexpected problems” have the highest rank These finding help manager focus the most critical delay factors to improve their ready-mixed concrete plant operation Recommendations are proposed to minimize the effect of delay factors Author also suggests a further research for assessing influence of delay factors on production, efficiency, time, and cost Word count: 13038 Key word: Ready-mixed concrete, plant operation, delay, delay factors il * EUROMED TOULON —- HCMC OU MIBM-01 a “HA GIỆP Vu Thieu Tuan | Table of Contents Acknowledgment Abstract ii Contents iil List of table vii List of figure ix Abbreviation Chapter 1: Introduction 1.1-Context of the research (reason for choosing it) 1.1.1-Increase of demand for Ready-mix concrete 1.1.2-Competitive advantages in ready-mixed concrete industry 1.1.3-A need for identification of delay in plant operation 1.2-Purpose and objectives 1.2.1-Project Objectives 1.2.2-Personal Objectives 1.3-Researh Hypothesis or Question 1.4-Scope of study 1.5-Structure of the thesis Chapter 2: Literature Review 2.1-Nature of ready-mix concrete 2.2-What is a ready-mix concrete plant 2.3-The flow of the ready-mixed concrete supply 2.4-The ready-mixed concrete operation 2.4.1-Material produetion - 2.4.2-Product loading 2.4.3-Truck transport 2.4.4-Ready-mixed coricrete placement ~2.4.5-Truck-return 2.5-Ready-mixed concrete batching plant operation’s issues iil , EUROMED TOULON — HCMC EE MANAGEMENT 2.5.1-Nature of Demand OU Vụ Thieu Tuan MIBM-O1 Silat FfNiauw 2.5.2-Location 2.5.3-Environnement impact 10 2.5.4-Traffic 11 2.5.5-Policy and Legislation 12 2.5.6-Technological change 12 2.5.6.1-computerized and automated batching systems 12 2.5.6.2-Increase in production and delivery capacity 12 2.5.6.3-Expansion of admixtures 13 2.5.6.4-improvements in logistical coordination 13 2.5.6.5-The appearances of Concrete pumps 2.6-Potential sources of delay factors 14 Chapter 3: Research Methodology 18 3.1-Research procedure 18 3.2-Literature review 19 3.3-Data collection 19 3.3.1-Questionnaires design 19 3.3.2-Pilot testing 20 3.3.3-Sampling 21 3.3.4-Questionnaires distribution 21 3.3.5-Survey Target 21 3.3.6-Study limitations 22 3.3.7-Difficulty in data collection 22 3.4-Data statistical methods and analysis methods 22 3.4.1-Data coding and entering 22 3.4.2-Descriptive statistic 22 3.4.2.1-Frequecy analysis 23 3.4.2.2-Descriptive analysis 23 4.3-Factor analysis 23 TOULON a MANAGEMENT EUROMED TOULON _ HCMC MIBM-O1 Vu Thieu Tuan OU Co 3.4.3.1-Overview 23 3.4.3.2-Statistics Associated with Factor Analysis 24 3.4.4-Reliability Analysis 25 3.4.4:1-Overview 25 “ h m ¿t 26 3.4.4.2-Cronbach’s alpha Chapter 4: Data Analysis 27 4.1-Characteristics of respondents 27 27 4.1.1-Overview 4.1.2Age , 27 4.1.3Number of years working in ready-mixed concrete industry 27 4.1.4-Gender 28 4.1.5-Summary on characteristics of respondents 28 4.2-Descriptive analysis 28 4.3-Factor analysis 29 4.3.1- Kaiser-Meyer-Olkin and Bartlett's test 29 4,3.2-Factor analysis 30 4.4-Reliability analysis 32 4.4.1-Component 32 4.4.2-Component 32 4.4.3-Component 33 4.4.4-Component 34 4.4.5-Component 34 4.4.6-Component 34 4.4.7-Reliability summary 35 4.5-Components Summary 35 Chapter 5: Findings Discussion 37 5.1-Placing problems 37 5.2-Management problems 37 Vu Thieu Tuan des OU „ TOULON - HCMC MIBM-O1 38 5.4-Unexpected problems 38 5.5-Demand conditions 39 5.6-Equipment problems 39 2HLOẠI EUROMED 't Chapter 6: Conclusion and Recommendations 40 6.1-Conclusions 40 6.2- Contribution of study 40 6.3- Recommendations 40 6.4-Suggestion for further research 41 + References 42 Appendix 44 Appendix A: Questionnaires 44 Appendix B: Descriptive analysis 47 Appendix C: Factor analysis 48 Appendix D: Reliability analysis 53 Appendix E: Statistics on characteristics of respondents vi 56 List of Tables J> Vu Thieu Tuan MIBM-O1 OU foe TOULON — HCMC Table 2.1: Summary of delay factors in ready-mixed concrete 16 Table 3.1: Finally variables for questionnaires 20 Table 4:1: Results of return 27 Table 4.2: Statistics on Age of respondents 21 Table 4.3: Statistics on number of years working in ready-mixed concrete industry 28 Table 4.4: Statistics on gender of respondents 28- Table 4.5: Descriptive Statistics on delay factors 29 Table 4.6: KMO and Bartlett's Test 29 Table 4.7: Total Variance Explained Sige HÀ Han EUROMED # 30 , Table 4.8: Communalities 30- Table 4.9: Rotated Component Matrix (a) 31 Table 4.10: Reliability statistics of Component 32 | Table 4.11: Reliability statistics of Component 33 Table 4.12: Reliability statistics of Component 33 Table 4.13: Reliability statistics of Component 34 Table 4.14: Reliability statistics of Component 34 Table 4.15: Reliability statistics of Component 34 Table 4.16: Summary of Components 35 | Table Al: Delay factors questionnaires 45 Table B1: Descriptive Statistics of delay factors (SPSS) 47 Table C1: KMO and Bartlett's Test (SPSS) 48 Table C2: Total Variance Explained (SPSS) 48 Table C3: Component Matrix (SPSS) 49 Table C4: Component Transformation Matrix (SPSS) 50 Table C5: Component Score Coefficient Matrix (SPSS) 51 Table D1: Reliability Statistics of Placing problems (SPSS) 53 Table D2: Item-Total Statistics of placing problems (SPSS) 53 Table D3: Reliability Statistics of management problems (SPSS) Table D4: Item-Total Statistics of management problems (SPSS) Table D5: Reliability Statistics of Material delivery problems (SPSS) Table D6: Item-Total Statistics of Material delivery problems (SPSS) Table D7: Reliability Statistics of Unexpected problems (SPSS) Vil - 53 53 54 54 54 EUROMED ae TOULON — HCMC Vu Thieu Tuan OU £ số — MIBM-01 Table D8: Item-Total Statistics of Unexpected problems (SPSS) 54 Table D9: Reliability Statistics of Demand problems (SPSS) 54 Table D10: Item-Total Statistics of Demand problems (SPSS) 55 Table D11: Reliability Statistics of Equipment problems (SPSS) 55 Table D12: Item-Total Statistics of Equipment problems (SPSS) 55: Table El: Ages of respondents (SPSS) - 56 Table E2: Number of years working in ready-mixed concrete industry (SPSS) 56 Table E3: Gender of respondents (SPSS) 57 vill ì | “ m TOULON EEUROMED TOULON — HCMC hel MANAGEMENT List of Figures MIBM-01 OU Vu Thieu Tuan | Fig 1.1: RMC consumption per Micro market at the South of Vietnam Fig 2.1: Flow diagram for ready-mixed concrete plant and mixer cycles: Fig 3.1: Research procedure 18 Fig C1: Scree Plot of Eigenvalue (SPSS) 48 Fig C2: Component plot in Rotated space (SPSS) 51 Fig El: Age of respondents (SPSS) 46 Fig E2: Number of years working in ready-mixed concrete industry (SPSS) 58 Fig E3: Percentage gender of respondents (SPSS) , 1X ... After finishing the spreading operation, placing crew finishes the ready- mixed concrete surface ~ 2.4 -Ready- mixed concrete operation The ready- mixed concrete operation can be divided into five... with the ready- mixed concrete plant operation to reduce the delay in ready- mixed concrete plant operation This research contributes to knowledge on management of ready- mixed concrete plant operation. .. on delay factors in the ready- mixed concrete operation then suggest recommendation to minimize their effect 16 delay factors have been detected from literature review Data on opinion about these