Assessment of Project Quality Management Practices:

In The Case of Awash, Dashen and United Bank

By: Michael Eshete

A Research Paper Submitted to St. Mary‘s University School of

Graduate studies Presented in Partial Fulfillment of the Requirement for
Masters of Arts Degree in Project Management

Advisor: Muluadam Alemu (Ph.D)

St. Mary‘s University

Addis Ababa, Ethiopia
July 2021

i
 St. Mary‘s University
School of Graduate studies

Assessment of Project Quality Management Practices:

In The Case of Awash, Dashen and United Bank

By: Michael Eshete

Thesis Approval Sheet

Approved by Board of Examiners

_______________ ____________________ _______________

Dean Signature Date

Muluadam Alemu (Ph.D) July 22, 2021

Advisor Signature Date

_______________ ____________________ _______________

Internal Examiner Signature Date

_______________ ____________________ _______________

External Examiner Signature Date

ii
 Declaration

I, Michael Eshete Kassaye, hereby declare that this work entitled—Assessment of Project
Quality Management Practices: In The Case of Awash, Dashen and United Bank, is my own
original work which is the outcome of my own effort and study that all sources of materials
used for the study have been duly acknowledged. I have produced it independently except for
the guidance and suggestion of the research advisor. This study has not previously in its
entirety or in part submitted at any university for a degree.

Declared by:

Name: Michael Eshete

Signature: ____________________

Date: ________________________

iii
 St. Mary’s University

School of Graduate Studies

This is to Certify that the thesis prepared by Michael Eshete, entitled: Assessment of Project
Quality Management Practices: In The Case of Awash, Dashen and United Bank submitted
in partial fulfillment of the requirements for the degree of Master of Arts Degree in Project
Management complies with the regulations of the University and meets the accepted
standards with respect to originality and quality.

June 18, 2021

Advisor: Muluadam Alemu (PH.D) Signature & Date

iv
 Abstract

The banking industry is one of the largest investments in Ethiopia. Almost all the services in
the banking sectors are implemented as a project. Hence, project quality management has
undeniable importance to those banking sectors to deliver their service with the desired
quality. Since the services delivered by those banking sectors are almost similar quality is the
key to with their competitors by increasing customer satisfaction. The main objective of the
research is to explore the project quality management practice in selected private banks, find
the potential gaps and put possible recommendations for those gaps. The empirical data were
obtained from qualitative research methods and thematic analysis is used to analyze the raw
data and generate a meaningful conclusion. Reliability and validity have also been taken into
consideration. The result of this study indicates that those private banks do not have separate
project quality management process which includes Plan Quality Management, Manage
Quality, and Control Quality. They perform it implicitly by integrating with other tasks. The
study also reveals other gaps in their project quality management process, which are lack of
commitment, awareness and skill in different stakeholders and poor communication between
them. For better and improved project quality management practices in those banks the
researcher mainly recommends that there should be a separate and independent process of
project quality management processes. This will make the banks to give it appropriate
attention and manage it well.

Keywords: Project quality management, Plan Quality Management, Manage Quality,

Control Quality

v
 Acknowledgement

First I would like to thank Almighty GOD who strengthens me. Next, I would like to thank
all my friends who give me their continuous support and comment. There is my advisor Dr.
Muluadam Alemu who makes this research real with his all priceless effort and advice to
follow up me in all journeys in this project work. I would like to thank all the selected banks
and their staffs for all hospitality and a great help. For their unlimited and unconditional love
and support, I would like to pass my deepest gratitude to my family even though it is way
less than what they are meant to me. Last but not least, I would like to thank my girlfriend,
what is a king without a queen?

vi
Contents
Declaration…………………………………………………………………………………………….. III
Abstract………………………………………………………………………………………………… V
Acknowledgement……………………………………………………………………………………… VI
Acronyms and Abbreviations…………………………………………………………………….. IX
CHAPTER ONE………………………………………………………………………….…………. 1
Introduction
1.1 Background of the study…………………………………………………………………………... 1
1.2 Background of the organization…………………………………………………………………... 3
1.3 Statement of the problem………………………………………………………………………….. 3
1.4 Research Questions………………………………………………………………………………... 6
1.5 Research Objectives……………………………………………………………………………….. 6
1.5.1 General Objective…………………………………………………………………………….. 6
1.5.2 Specific Objectives……………………………………………………………………………. 7
1.6 Significance of the study…………………………………………………………………………... 7
1.7 Scope of the study………………………………………………………………………………….. 7
1.8 Limitation of the study…………………………………………………………………………….. 8
1.9 Organization of the study…………………………………………………………………………. 8
CHAPTER TWO…………………………………………………………………………………..... 9
Literature Review
2.1 Theoretical Literature Review……………………………………………………………………. 9
2.1.1 Project and project management…………………………………………………………….. 9
2.1.1.1 Project……………………………………………………………………………………… 9
2.1.1.2 Project management……………………………………………………………………… 10
2.1.2 Project management body of knowledge……………………………………………………….. 11
2.1.3 Quality……………………………………………………………………………………………. 12
2.1.4 Project Quality…………………………………………………………………………………... 12
2.1.5 Project Quality Management……………………………………………………….…………... 13
2.1.5.1 Planning Quality Management……………………………………………………………... 15
2.1.5.2 Managing Quality………………………………………………………………………….… 16
2.1.5.3 Controlling Quality……………………………………….…………………………………. 17
2.1.6 Benefits of quality………………………………………………………………………………... 18
2.1.7 Roles of top management in Project quality management……………………………………. 18
2.2 Empirical Literature Review……………………………………………………………………… 19
2.2.1 Quality………………………………………………………………………………………….. 19
2.2.2 Quality in Financial Institution……………………………………………………………….. 20
2.2.3 Project quality management…………………………………………………………………... 21
CHAPTER THREE………………………………………………………………………………… 23
Research Design and Methodology
3.1 Research Design…………………………………………………………………………………… 23
3.2 Research Approach……………………………………………………………………………….. 23
3.3 Total Population and the Sampling Size…………………………………………………………. 24
3.3.1 Population……………………………………………………………………………………... 24
3.3.2 Sampling Technique………………………………………………………………………….. 24
3.4 Data Collection Methods and Instruments………………………………………………………. 25

vii
 3.4.1 Interview………………………………………………………………………………………... 25
3.4.2 Document Analysis…………………………………………………………………………….. 25
3.4.3 Observation……………………………………………………………………………………. 25
3.5 Methods of Data Analysis…………………………………………………………………………. 26
3.6 Reliability and validity…………………………………………………………………………….. 26
3.7 Ethical Considerations…………………………………………………………………………….. 27
CHAPTER FOUR…………………………………………………………………………………... 28
Results and Discussion
4.1 General information about the participants……………………………………………………... 28
4.2 The project management process practiced by the study Banks ……………………………… 29
4.3 Selection of project managers and availability of dedicated project offices ………………... 32
4.4 Quality management plan, standard and quality management process communication …. 32
4.5 Turn a key project management and the role of the top management………………………. 33
4.6 Discussion of Results ……………………………………………………………………………. 35
CHAPTER FIVE……………………………………………………………………………………. 37
Summary and Conclusion
5.1 Introduction………………………………………………………………………………………... 37
5.2 Summary and Conclusion…………………………………………………………………………. 37
5.3 Recommendations……...…………………………………………………………………………... 38
5.4 Future Area of Research…………………………………………………………………………... 39
REFERENCES …………………………………..……………………………………………………. 40
APPENDIX…………………………………..……………………………………………………...…. 45

viii
 Acronyms and Abbreviations
PMI Project Management Institute

PMBOK Project Management Body of Knowledge

ISHOPA Imperial Saving and Home Ownership Association

EPRDF Ethiopian People's Revolutionary Democratic Front

EQA Ethiopian Quality Award

PBS Product Breakdown Structure

PMO Project Management Office

RMO Result Management Office

RFP Request for Proposal

TOR Term of Reference

OIB Oromia International Bank

CEO Chief Executive Officer

IT Information Technology

ix
 CHAPTER ONE

INTRODUCTION
1.1 Background of the study
According to (PMI, 2017), a project is a temporary endeavor undertaken to create a unique
product, service, or result. Projects are undertaken to fulfill objectives by producing
deliverables. Fulfillment of project objectives produces one or more of the following
deliverables: a unique product, a unique service or a capability to perform a service, a unique
result and a unique combination of one or more products, services, or results.

Projects grow out of problems or opportunities. Banks create a lot of opportunities from the
competition they are in, and also from problems which arise during the delivery of their
existing services. Because of that, banks highly rely on projects. Nowadays banks turn their
main focus to their customers and craft customer-based service delivery strategies. Hence,
banks work hard to attract many customers. Since almost all the services given by those
organizations are similar, the quality of those services will be serving as a jackpot to win the
completion among them and lets them attract more customers. Since financial services,
particularly banks, compete in the marketplace with generally undifferentiated products,
service quality becomes a primary competitive weapon (Stafford, 1996).

Banks should deliver services with quality that meets, even exceeds beyond, their customer‘s
expectation. Quality is of a product or service free of deficiencies or the characteristics of a
product or service that satisfies customer needs (Asim & Zaki, 2012). Mikiyas (2018),
concludes that project execution does influence the quality performance of projects by
showing the relationship between project execution and quality performance, which is a high
correlation coefficient of 0.81. So that project should be managed well before their closure to
produce quality products or services from them. ―The customer, or the recipient of the
project‘s deliverables, expects a certain level of functionality and quality from the project‖

1
Robert (2003). To deliver products or services with a quality of customer‘s expectation, there
should be a proper and continuous project quality management throughout all the phases of
the project life cycle. According to Gartner (2017), Project Life cycle has four phases named
as initiating, planning, execution and closing.

FREZEWD (2016) also states that ―In the case of our country, lots of different projects are
undertaking. It is also common to observe these projects achieving their objective or else see
those facing difficulty in the meeting schedule, cost and quality set at the beginning.‖

According to PMI (2017), Project Quality Management includes the processes for
incorporating the organization‘s quality policy regarding planning, managing, and
controlling project and product quality requirements in order to meet stakeholder‘s objective.
Project Quality management also supports continuous process improvement activities as
undertaken on behalf of the performing organization. The project quality management
processes are: plan quality management, manage quality, and control quality.

Almost all the services in financial sectors like banks are implemented as a project, and if
appropriate quality management process is not applied to those projects it will be very
difficult, even impossible, to produce services with the desired quality from those projects.
―A sound quality management program with processes in place that monitor the work in a
project is a good investment. Not only does it contribute to client satisfaction, but it helps
organizations use their resources more effectively and efficiently by reducing waste and
revisions. Quality management is one area that should not be compromised. Since project
quality management will plays a great role, the purpose of this study is to assess the project
Quality Management Culture in selected private banks of Ethiopia.

2
1.2 Background of the organization
Monetary and Banking proclamation of 1994 established the national bank of Ethiopia as a
judicial entity, separated from the government and outlined its main function. Monetary and
Banking Proclamation No.83/1994 and the Licensing and Supervision of Banking Business
No.84/1994 laid down the legal basis for investment in the banking sector. Currently, private
commercial banks in Ethiopia reached to sixteen. Among them Awash, Dashen and United
banks are well known and giant private banks in Ethiopia. Awash Bank was established by
486 founding shareholders with a paid-up capital of birr 24.2 million and started operation on
Feb 13, 1995. Dashen Bank was founded by eleven visionary shareholders with a paid up
capital of birr 14.9 million in Sep. 1995 and opened its door for services on Jan. 1, 1996 and
United Bank was incorporated as a share company on Sep. 10, 1998.

1.3 Statement of the problem

In the world of competition, service quality is the most important parameter that needs
critical attention for an organization to exceed its competitors. Banks in Ethiopia are in tough
competition more than ever before. In winning this competition, those banks have to increase
the number of services given and undertake projects to implement those services. Services
given by those sectors should be increased not only by their numbers but also their quality as
well. ―Higher product quality is required for a company to become more competitive, both
locally and in international trade improved quality at the enterprise level lowers its cost of
operations and increases its productivity. The firm‘s ability to produce better products at a
reduced (or even the same) price boosts its market share‖ (Daniel & Fasika, 2003). Daniel &
Fasika (2003) also state that quality is the extent to which the customer or users believe the
product or service surpasses their needs and expectations.

Increasing the number and quality of service they are giving let banks not only to retain their
existing customers but also lets them attract new ones. Montes, el al. (2003) state that
customers now look for financial institutions that best meet their expectations. Few barriers
prevent mobility between financial institutions, so customers may easily change from one to

3
another, should these institutions not provide competitive services. Financial institutions
offer new products in order to satisfy these expectations in a different way from their
competitors, with greater service quality and attempts to increase loyalty amongst their
customers. Customer satisfaction depends on the product or service supplied by an
organization which meets customer expectation. By measuring service quality and customer
satisfaction organizations can determine how successful they are in terms of the services to
their customers (Netsanet, 2017).

Service quality is particularly essential in the banking services context because it provides a
high level of customer satisfaction, and hence it becomes a key to competitive advantage
(Almossawi, 2001). Unsatisfactory customer service leads to a drop in customer satisfaction
and willingness to recommend the service to a friend (Levesque & McDougall, 1996).
Therefore, banks should give special attention to increasing the quality of their services to
increase their customer satisfaction and take competitive advantage on their competitors.

Quality must be recognized, from the point of importance, at the same level as the scope of
the project, time and costs. If the stakeholders are not satisfied with the quality of project
management or the results of the project, the project team should commit scope change, time
extensions and additional cost to satisfy the stakeholders‘ need and expectation (Rahel,
2017). Proper project management needs to balance all the three project constraints: time,
budget and quality. It is easier to measure and manage budget and time but quality. Poor
quality management is the main cause of the failure of many projects. Stojcetovic, et al.,
(2014) state that there are many examples in practice that projects were delivered on time
and within budget but failed to meet the expectations of end-users.

Though service quality has a great role in winning the competition between banks, banks
have seen to fail to deliver their services with the quality that satisfies their customers. For
instance, Asrat (2017) checks the significant difference between customer‘s expectation and
perception of service quality dimensions (Reliability, Responsiveness, Security, Empathy,
and Tangibility) of United Bank S.C. Asrat (2017) states that the bank has failed to meet its

4
customer‘s expectation in all the service quality dimensions. In other words, the customer‘s
expectation of Online Banking service quality has exceeded their perceived service quality
(Asrat, 2017). And Girma (2015) also concludes in his research that, since the bank service
quality measurement showed negative disconfirmation in all of the service quality
dimensions, one can conclude that Oromia International Bank is not providing quality
services to its clients.

In Ethiopia, there is poor quality management practice and it is one of the areas that need
greater attention. ―Through analyses of the EQA self-assessment report evaluation, generally,
quality management practice in Ethiopia was found to be low in all the tenets including
leadership, policy and strategy, resources management, process management, customer
satisfaction, business performance and impact on society‖ (Birhanu & Daniel, 2013). Since
service is difficult to control and measure so is its quality. Birhanu and Daniel (2013) also
state that quality management practice in service industries is weaker when it is compared to
manufacturing industries.

Daniel and Fasika (2003), Haben (2008), Netsanet (2008), Mesafint (2008), Birhan (2008),
Tessema (2008), Dagne (2009), Yitagesu (2009), Amanuale (2009), Asrat (2011) Negalign
(2011), Wondifrawu (2010) and some other researches have done researches on quality
management practice in manufacturing industries, and some researches like Rahel (2017),
Samson (2008), Alenewu (2010) are also have done researches on the quality management of
construction projects. All those researchers are focused only on the quality of service which
is after the project completion. But, it is obvious that proper quality management is necessary
before the completion of the project and it is implemented to start giving service to the
customer. ―Quality on projects should start at the establishment phase, by establishing the
correct project brief and scope and it flows through all phases of the project up to project
approval and project closeout. Quality management is not an event it is a process, a
consistently high quality product or service cannot be produced by a detective process.
Quality management is a repetitive cycle of measuring quality, updating quality until the
desired quality is achieved. Investing and adapting to new technologies is the major concern

5
for the banks, due to this fact, there is no much strict rule and regulation regarding project
quality. As long as the project output is what the banks demands the projects are tolerated in
some level of quality. As per the preliminary assessment, there is a gap in project quality
management in private banks of Ethiopia. So, this research will fill the gap by studying the
project quality management culture in selected private banks of Ethiopia. It also will try to
find problems related to that area and put possible recommendations for those problems.

1.4 Research Questions

The study was conducted with the main aim of assessing the Project Quality Management
Culture in selected private banks of Ethiopia. The study has attempted to answer the
following questions:
 How do project quality management practices look like in these three selected private
banks?
 To what extent do those private bank project management offices practices project
quality management principles?
 What documented quality standards, control and assurance system involved in their
quality management system?
 What were the sources of quality problem?

1.5 Research Objectives

1.5.1 General Objective
The general objective of the study is to assess the quality management practice in selected
private banks of Ethiopia by exploring the practices and processes which is performed and to
provide direction and action items as a recommendation for the gaps which is found in those
practices.

6
1.5.2 Specific Objectives
To meet the general objective, the following specific objectives are set:
 To assess the general practices of project quality management in those selected
private banks.
 To investigate project quality management principles are applied in their quality
management system.
 To assess policy and procedure to govern the project quality management system.
 To identify sources of quality problems in those private banks.

1.6 Significance of the study

This research plays a great role by filling the knowledge gap around the Project Quality
management culture of private banks. It is believed to provide insight and knowledge about
Project Management Culture, especially Project Quality Management. In general, this study
has the following significance:
 Assess the project quality management practice in private banks of Ethiopia.
 Indicate higher officials about gaps in their project quality management practice to
take corrective action.
 Create awareness on project quality management practice in private banks and make
them give appropriate attention to it.

1.7 Scope of the study

Due to time and budget constraints the study was limited to the extent of assessing project
quality management cultures in only three bank out of sixteen private banks in Ethiopia. This
study clearly explained the project quality management culture in those private banks and list
out possible problems around their project quality management culture with their possible
recommendations.

7
1.8 Limitations of the study
The main limitations or challenge of this research is on availability of adequate past project
documents, project manager decision and meeting minutes that are related to project quality.
In addition analyzing the project quality performance of projects in high employee turnover
environment creates unavailability of project team members for interviews and discussion.

1.9 Organization of the study

The thesis is organized with five chapters. Chapter one introduces the background of the
study which describes what Project Quality Management is from general and banking
industry. This chapter also presents the statement of the problem, and the objective and
questions of the study. Chapter two introduces the part where literature related to the topic
are reviewed and presented for further description of the research area to understand the
study clearly. Chapter three presents research design and methodology which includes
general insight on the existing research methods, what research method was employed in this
thesis and why? Data collection techniques and data analysis methods are stated clearly in
this chapter. Chapter four of the study is a part where data (collected through questionnaire,
interview, and document analysis) are analyzed and presented. And the findings from the
analysis are discussed and interpreted then summarization is made as related to the research
problems statement. The fifth and the final chapter summarize the study and makes
conclusion based on the findings. The recommendation of the study and areas for further
research are also presented. At the end of the research report, references used are listed and
appendices are also attached.

8
 CHAPTER TWO

LITERATURE REVIEW
This chapter is to create a concrete knowledge in the research area. It has two sections
theoretical and Empirical. Theoretical review tries to explain those theoretical knowledge‘s
and the empirical literature review explains the area from actual research papers.

2.1 Theoretical Literature Review

The aim of the literature review is to demonstrate primary and secondary research skills; to
show that the researcher understands the research subject; has studied existing works in
relation to the research objectives, design and methodology (Hart, 1998).

2.1.1 Project and project management

2.1.1.1 Project
A project is a temporary endeavor undertaken to create a unique product, service, or result.
According to PMI Guide (2017), the fulfillment of project objectives may produce a unique
product that can be either a component of another item, an enhancement or correction to an
item, or a new end item in itself, unique service or a capability to perform a service, a unique
result, such as an outcome or document, a unique combination of one or more products,
services, or results.

A project is a one-time task constrained by time, cost, and quality, and its success depends on
how well these constraints are balanced Stojčetović, et al. (2014).

9
2.1.1.2 Project management
Project management is defined by different authors through time. Breyfogle, (2003) stated
that Project management is the management, allocation and timely use of resources for the
purpose of achieving a specific goal. PMI (2017) Project management is a discipline which is
concerned on maximizing project quality within its defined budget and schedule. Project
management is the application of knowledge, skills, tools, and techniques to project activities
to meet the project requirements. PMI (2017) also states that project management enables
organizations to execute projects effectively and efficiently. Poorly managed projects or the
absence of project management may result in missed deadlines, cost overruns, poor quality,
rework, uncontrolled expansion of the project, loss of reputation for the organization,
unsatisfied stakeholders, and failure in achieving the objectives for which the project was
undertaken. A Project Management Process Group is a logical grouping of project
management processes to achieve specific project objectives. Process Groups are
independent of project phases. Project management processes are grouped into five Project
Management Process Groups: Initiating Process Group, Planning Process Group, Executing
Process Group, Monitoring and Controlling Process Group, Closing Process Group.
Initiating Process Group: Those processes performed to define a new project or a new
phase of an existing project by obtaining authorization to start the project or phase.
Planning Process Group: Those processes required to establish the scope of the project,
refine the objectives, and define the course of action required to attain the objectives that the
project was undertaken to achieve.
Executing Process Group: Those processes performed to complete the work defined in the
project management plan to satisfy the project requirements.
Monitoring and Controlling Process Group: Those processes required to track, review,
and regulate the progress and performance of the project; identify any areas in which changes
to the plan are required, and initiate the corresponding changes.
Closing Process Group: Those processes performed to formally complete or close the
project, phase, or contract.

10
2.1.2 Project management body of knowledge
Project management is regulated by professional bodies. One such body is the PMI. The PMI
has published a knowledge guide known as the PMBOK Guide. PMI (2017) defines a
knowledge area as an identified area of project management defined by its knowledge
requirements and described in terms of its component processes, practices, inputs, outputs,
tools, and techniques. Although the Knowledge Areas are interrelated, they are defined
separately from the project management perspective. The ten Knowledge Areas identified in
PMI (2017) and described as below:
Project Integration Management: Includes the processes and activities to identify, define,
combine, unify, and coordinate the various processes and project management activities
within the Project Management Process Groups.
Project Scope Management: Includes the processes required to ensure the project includes
all the work required, and only the work required, to complete the project successfully.
Project Schedule Management: Includes the processes required to manage the timely
completion of the project.
Project Cost Management: Includes the processes involved in planning, estimating,
budgeting, financing, funding, managing, and controlling costs so the project can be
completed within the approved budget.
Project Quality Management: Includes the processes for incorporating the organization‘s
quality policy regarding planning, managing, and controlling project and product quality
requirements, in order to meet stakeholders‘ expectations.
Project Resource Management: Includes the processes to identify, acquire, and manage the
resources needed for the successful completion of the project.
Project Communications Management: Includes the processes required to ensure timely
and appropriate planning, collection, creation, distribution, storage, retrieval, management,
control, monitoring, and ultimate disposition of project information.
Project Risk Management: Includes the processes of conducting risk management
planning, identification, analysis, response planning, response implementation, and
monitoring risk on a project.

11
Project Procurement Management: Includes the processes necessary to purchase or
acquire products, services, or results needed from outside the project team.
Project Stakeholder Management: Includes the processes required to identify the people,
groups, or organizations that could impact or be impacted by the project, to analyze
stakeholder expectations and their impact on the project, and to develop appropriate
management strategies for effectively engaging stakeholders in project decisions and
execution.

2.1.3 Quality
The ISO 9000 definition for quality is ―the totality of feature and characteristics of a product
or service that bears on its ability to satisfy stated or implied needs.‖ Kerzner (2009) states
that terms such as fitness for use, customer satisfaction, and zero defects are goals rather than
definitions. Most organizations view quality more as a process than a product. To be more
specific, it is a continuously improving process where lessons learned are used to enhance
future products and services in order to: retain existing customers, win back lost customers,
win new customers.

Meri (2008) states that quality is not only the quality of the finished product but also the
approach. This means proper quality control should be applied in the production phase before
the products/services are finished and join the market.
2.1.4 Project Quality
Turner (2009) states that it is popular to say a project is successful if it is finished on time, to
cost, and to quality. We all understand how we measure cost and time, but very few people
understand what they mean by the good quality in the context of a project. According to
Turner (2009), the project is said to be good quality if the project‘s output, the new asset
• Meets the specification

• Is fit for purpose

• Meets the customer‘s requirements

• Satisfies the customer

12
Meets the Specification: The facility is produced in accordance with the written
requirements laid down for it. The requirements can be specified on several levels, mapping
onto levels of product breakdown structure (PBS): customer, functional, system, and detail
requirements.
Is Fit for Purpose: The facility, when commissioned, produces a product which solves the
problem, or exploits the opportunity intended, or better. It works for the purpose for which it
was intended and produces the desired outcome.
Meets the Customer’s Requirements: The facility meets the requirements the customer had
of it. Here we mean what the customer thinks they require, the thoughts they had, not the
way they vocalized their thoughts as words, and not the way those words got written down as
a customer requirements specification.
Satisfies the Customer: Customer satisfaction is a measure of how products and services
supplied by a company meet or surpass customer expectation. The facility and the product it
produces to make the customer feel satisfied. Now there is also a difference between
satisfying the customer, ―that‘s alright then,‖ and delighting the customer, ―that‘s
wonderful.‖ Satisfaction is the consumer‘s fulfilment response. It is a judgment that a
product or service feature, or the product or service itself, provided (or is providing) a
pleasurable level of consumption-related fulfilment, including levels of under or over-
fulfilment (Oliver 2010). Zeithaml and Bitner (2000) defined customer satisfaction as the
customers‟ evaluation of a product or service in terms of whether that product or service has
met their needs and expectations.

2.1.5 PROJECT QUALITY MANAGEMENT

Quality is one of the constraints that define project success. The project manager has the
ultimate responsibility for quality management on the project. Quality management has equal
priority with cost and schedule management Kerzner (2009). Very often project managers try
to maximize project quality within a given deadline and budget (Stojčetović, et al. 2014).
Rose (2014) explains that the quality of the project itself highly affects the quality of the
product/process from that project. He also mentions that project managers routinely make

13
trade-offs among other constraints: time, cost and scope to meet project objective, but a
project manager should never, never, ever trade-off quality during project implementation.

Project Quality Management addresses the management of the project and the deliverables of
the project. It applies to all projects, regardless of the nature of their deliverables. Quality
measures and techniques are specific to the type of deliverables being produced by the
project PMBOK Guide (PMI, 2017).

According to ―five-element model for managing quality on projects‖ of Turner (2009), there
are two elements represent what we must manage the quality of (the product and the
management processes), Two represent how we manage their quality (through quality
assurance and quality control), and the fifth represents the attitudes of the people involved.

Quality of the product: is the ultimate goal. It is the product which satisfies all the criteria
and which influences attitudes years after the project is finished.

Quality of the management processes: is also a significant contributor to the quality of the
project‘s product. Following well-defined, previously proven successful ways of doing things
increase the chance of success. Designing new project management processes at the start of
every project increases the chance of failure. We shall see below, that this means developing
procedures for the organization to be used as flexible guidelines, not rigid rules.

Quality assurance: is preventative medicine, steps taken to increase the likelihood of

obtaining a good-quality product and management processes. It is about trying to get it ―right
first time”.
Quality control: is curative medicine, which recognizes human fallibility and takes steps to
ensure that any (hopefully small) variations from the standard which do occur are eliminated.
This is about trying to get it right every time, with zero defects.

14
Good attitude: is essential to successful project management. The commitment to quality
must be at all levels of the organization; it cannot be delegated downwards or pushed
upwards.
Project Quality Management includes the processes for incorporating the organization‘s
quality policy regarding planning, managing, and controlling project and product quality
requirements in order to meet stakeholders‘ objectives. Project Quality Management also
supports continuous process improvement activities as undertaken on behalf of the
performing organization (PMI, 2017). PMI (2017) also explains the Project Quality
Management processes as below:
• Plan Quality Management: The process of identifying quality requirements and/or
standards for the project and its deliverables, and documenting how the project will
demonstrate compliance with quality requirements and/ or standards.

• Manage Quality: The process of translating the quality management plan into executable
quality activities that incorporate the organization‘s quality policies into the project.
• Control Quality: The process of monitoring and recording the results of executing the
quality management activities to assess performance and ensure the project outputs are
complete, correct, and meet customer expectations.

2.1.5.1 Plan Quality Management

Plan Quality Management is the process of identifying quality requirements and/or standards
for the project and its deliverables, and documenting how the project will demonstrate
compliance with quality requirements and/or standards. The key benefit of this process is that
it provides guidance and direction on how quality will be managed and verified throughout
the project. This process is performed once or at predefined points in the project (PMI,
2017).

PMI (2017) also states that Quality planning should be performed in parallel with the other
planning processes. For example, changes proposed in the deliverables in order to meet

15
identified quality standards may require cost or schedule adjustments and detailed risk
analysis of the impact of plans.

Project quality planning begins with a determination of customer satisfaction standards and
tradeoff values. If the project sponsor, manager, and core team fully understand these two
customer desires, the chances of completing a high-quality project are much greater
(Kloppenborg & Petrick, 2002).

Project quality planning is a structured process for developing products that ensure customer
needs are met with the final result. The tools and methods of quality planning are
incorporated along with the technological tools for the particular product being developed
and delivered (Juran, 1999)

2.1.5.2 Managing Quality

Manage Quality is the process of translating the quality management plan into executable
quality activities that incorporate the organization‘s quality policies into the project. The key
benefits of this process are that it increases the probability of meeting the quality objectives
as well as identifying ineffective processes and causes of poor quality. Manage Quality uses
the data and results from the control quality process to reflect the overall quality status of the
project to the stakeholders. This process is performed throughout the project (PMI, 2017).

Manage Quality is sometimes called quality assurance, although Manage Quality has a
broader definition than quality assurance as it is used in non-project work. In project
management, the focus of quality assurance is on the processes used in the project. Quality
assurance is about using project processes effectively. It involves following and meeting
standards to assure stakeholders that the final product will meet their needs, expectations,
and requirements. Manage Quality includes all the quality assurance activities and is also
concerned with the product design aspects and process improvements (PMI, 2017).

16
Project quality assurance includes improving the management of external and internal
customer satisfaction expectations. These are ongoing activities that occur throughout the
entire project quality assurance stage of the project. Improving the satisfaction of external
customers contributes to bottom-line profitability by generating repeat business and positive
referrals. Improving the satisfaction of internal customers increases operational efficiency,
accelerates the pace of organizational learning, and supports meaningful teamwork
(Kloppenborg & Petrick, 2002).

2.1.5.3 Controlling Quality

Control Quality is the process of monitoring and recording results of executing the quality
management activities in order to assess performance and ensure the project outputs are
complete, correct, and meet customer expectations. The key benefit of this process is
verifying those project deliverables and work meet the requirements specified by key
stakeholders for final acceptance. The Control Quality process determines if the project
outputs do what they were intended to do. Those outputs need to comply with all applicable
standards, requirements, regulations, and specifications. This process is performed
throughout the project (PMI, 2017).

The Control Quality process is performed to measure the completeness, compliance, and
fitness for use of a product or service prior to user acceptance and final delivery. This is done
by measuring all steps, attributes, and variables used to verify conformance or compliance to
the specifications stated during the planning stage. Quality control should be performed
throughout the project to formally demonstrate, with reliable data, that the sponsor‘s and/or
customer‘s acceptance criteria have been met (PMI, 2017).

The range of quality control includes both product results, such as deliverables, and project
management results, such as budgeted cost and schedule deadlines. To ensure customer
satisfaction, the project quality control stage entails prevention, inspection, and testing at
three points: at the receipt of incoming project resources, during the project creating/delivery
process, upon completion of project production (Kloppenborg & Petrick, 2002).
17
Quality control as defined by Juran (1999) is a universal managerial process for conducting
operations to provide stability – to prevent adverse change and to ―maintain the status quo.‖
To maintain stability, the quality control process evaluates actual performance, compares
actual performance to goals, and act on the difference. Quality control is one of the three
basic managerial processes through which quality can be managed (Juran, 1999).

2.1.6 Benefits of quality

As Rose (2014) explains, the benefits of quality in project performance are many. First, a
quality project and product will yield customer satisfaction. This will benefit both the
contractor and the client. The client will be benefited from the quality service he gets. And
the contractor itself will be benefited by building his reputation which lets him get another
project form the client and also attract other clients. Reduced cost is the other benefit. The
quality process can eliminate rework, reduce waste, improve efficiency, and improve
supplies; all those might make the project cost less than planned. Finally, better products,
better project performance, and lower costs translate directly into increased competitiveness
in an ever-more-global marketplace.

2.1.7 Roles of top management in Project quality management

Juran(1999) states that it is difficult to attain quality leadership without the top manager
carrying out the following non-delegable roles.
 Serve on the quality council: this will help to get more attention and priorities to the
rest of the organization.
 Acquire training in managing for quality: Top managers risk losing credibility if they
try to lead while lacking training in managing for quality.
 Approve the quality vision and policies
 Approve the major quality goals: The quality goals that enter the business plan must
be deployed to lower levels to identify the deeds to be done and the resources needed.
The upper managers become essential parties to the deployment process.

18
  Establish the infrastructure.
 Provide resources: Availing necessary recourses with proper time and quality have a
great impact on project quality. The top management has a greater role in this process.
 Review progress: A major shortcoming in personal participation by upper managers
has been the failure to maintain a regular review of progress in making quality
improvements. Without regular and proper progress review form top management
project quality management will be very difficult.
 Give recognition: Recognition usually involves ceremonial events that offer highly
visible opportunities for upper managers to show their support for quality
improvement. This recognition giving process will make all the project teams to
motivate and increase motivation in their work.
 Revise the reward system.
 Serve on project teams: when top managements serve on the project team they will
give more attention to the project and their understanding of the project will be
increased.
 Face up to employee apprehensions.

2.2 Empirical Literature Review

Here in this part, related original research papers, articles and journals which are based on
experience and observation, rather than on systematic logic will be discussed.
2.2.1 Quality
According to Juran (1999), qualities are those features of products which meet customer
needs and thereby provide customer satisfaction. The purpose of such higher quality is to
provide greater customer satisfaction. However, providing more or better quality features
usually depends on the quality management process of projects which are performed to
deploy those services. Product manufacturers can adjust their machinery and inputs until
everything is perfect, but it is a different story when it is for service. Service quality will
always vary depending on the interaction between employees and customers (Kotler &
Armstrong, 2012).

19
The word quality is not used in absolute terms. It is a relative term which differs from person
to person, country to country, and time to time. With such variations, it is difficult to provide
good or excellent quality at all times, and for everyone. The life span of an organization in
the open market is usually proportional to the time in which it can maintain the quality of its
products and as services a good or excellent (Asim & Zaki, 2012). Asim and Zaki also state
that Quality is of a product or service free of deficiencies or the characteristics of a product
or service that satisfies customer needs. Quality products usually possess three
characteristics: reliability, serviceability and durability. Quality service means reliability,
tangibles, responsiveness, assurance, and empathy.

2.2.2 Quality in Financial Institution

Customers now look for the financial institutions that best meet their expectations. Few
barriers prevent mobility between financial institutions, so customers may easily change
from one to another, should these institutions not provide competitive services. Financial
institutions offer new products in order to satisfy these expectations in a different way from
their competitors, with greater service quality and attempt to increase loyalty amongst their
customers (Montes el al. 2003). Financial institutions are highly dependent on their
customer. Therefore, they should give great attention to manage them. In doing so, those
institutions categorize in many parameters and work on different attributes of their
customers. One of those attributes is the loyalty of those customers. Customer loyalty needs
hard work and serious management since it needs a long term experience of satisfaction and
confidence of the customer. Service quality is an important antecedent of customer
satisfaction, (Zeithaml & Bitner, 2003; Andaleeb & Conway, 2006). Hackl and Westlund
(2000) stated that customer satisfaction is a key element for customer retention and loyalty
and assist and accelerates the organization performance. Service quality, therefore, has a
great impact on customer loyalty since it highly affects customer satisfaction. The quality of
services offered by a company determines customer satisfaction and long term loyalty (Naik,
et al. 2010).

20
Finical Institutions should manage their service quality properly. Service quality is critical
particularly for the growth and development of service sector business enterprises (Juran,
1999). Service delivering institutions deliver almost the same kind of services. For instance,
most of the services in all the banks are all the same. Parameters of those services will play
the winning role for those banks. One of those parameters is quality. The deliverance of
quality services to customers is the competitive advantages of any service giving companies,
Parasuraman, et al. (1985). Zerihun (2017) states that project quality management enhances
competitiveness with other parameters by showing that there is a significant positive
correlation between competitive advantage and project quality management with 0.391.

2.2.3 Project quality management

Lack of project management and lack of quality management are major causes of software
projects fail, states Mullualem (2014). Projects can be successfully completed only with
focused attention on goals by the project team members, projects act as a means for
consolidating the experience and expertise of the organizational members effectively, create
a learning environment, encourage-team spirit and help to achieve organizational objectives.
Based on these characteristics, it would seem that project management, if introduced
properly, would fill a natural need in the developing countries for a better and more
economical way of managing their ever-growing number of projects (Asare & Adams, 2017).

According to Stuckenbruck (1981), Project management has the following advantages: It is a

way of effectively identifying the most critical and urgent needs and for applying the best
priorities. It is also a way of getting people to work effectively together. Efficiently using
scarce resources, and for effectively allocating them where they are most urgently needed.
Effective utilization of scarce skilled personnel, as well as raw materials and expensive
equipment, is extremely important in all developing countries. It is results-oriented and
discourages the possibility of projects becoming a part of their bureaucratic institution.
Project management lets you to obtain results faster and more efficiently (usually cheaper). It
increases the probability of completing the project on time and within budget. It is a way of
increasing the efficiency and effectiveness of government bureaucracies. It can cause some

21
agencies to learn some lessons from the implementation of the projects, and possibly
incorporate some of the techniques into their system. Completing the projects on time and
within budget (fulfilling the promises) will give people more trust and confidence in their
government, and will encourage the system to be more responsive to public needs and
expectations.

According to Kousouris (2009) quality management, quality concepts and maturity models
are keys to understanding and managing quality projects and producing quality projects
outcomes. The financial services industry ought to follow quality processes in order to satisfy
customers.

22
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

This part discusses the research design, sampling technique, sources, tools and procedures of
data collection and method of data analysis for the study.
3.1 Research Design
According to Saunders, Lewis and Thornhill (2009) research design is the general plan of
how the researcher will go about answering the research questions. It contains clear
objectives, derived from the research question(s), specifies the sources from which the
researcher intends to collect data, and consider the constraints that will inevitably have as
well as discussing ethical issues.

In light of the objectives, this study preferred and employed the research design which is
exploratory. This is because it is flexible enough to provide an opportunity for considering
all aspects of the problem in their project management culture and defines the problem
correctly. Qualitative research approach, which can be set aside with exploratory research
design, is used. Data collection methods and instruments are selected that are appropriate for
exploratory research design. Population and sampling are performed in accordance with the
data collection instruments. Data from those data collection instruments analyzed with the
methods appropriate for those instruments. After analysis, the result is summarized;
concluded and possible recommendations are made qualitatively.

3.2 Research Approach

The study has used qualitative research approach which is suitable for its exploratory nature.
This enables the researcher to provide rich description and depth understanding about gaps in
their quality management system and build larger knowledge claims about the culture.

23
3.3 Total Population and the Sampling Technique
3.3.1 Population
Castillo (2009) defines target population as, referring to the entire group of individuals or
objects to which researchers are interested in generalizing the conclusions. For this research,
the target populations are projects that are implemented under project management office in
those selected private banks. To get information regarding their project quality management
practices, project management office staffs that were participated in two or more completed
projects are considered as population. According to their offices, the number of staffs who
were working in these three banks project management Offices in the past five years reached
around six hundred fort-nine. Many of these staffs transferred to the functional unit with the
project they were working. Some of them are assigned to other projects and continue
working in the offices. Currently the numbers of staffs who are working under these offices
are fifty two.

3.3.2 Sampling Technique

From all those private banks only three are selected by convenience or opportunistic
sampling. In convenience or opportunistic sampling, samples are selected because they are
convenient, easy, and relatively inexpensive to access. These three banks have a well-
organized dedicated project management office with readily available participants and the
researcher believe that the data gathered from those banks fit the parameters of the project‘s
research questions, goals, and purpose.

Purposive sampling technique is employed to select staffs for an interview since the
interviewees were selected based on their specialized insight or special perspective,
experience, characteristic, or condition when there is something the researcher wishes to get
and understand. And participants were project managers, team leaders and project team
members who have more than three years of experience in the project management office
and who have completed more than two projects and they are seven in numbers. Four of the

24
selected interviewees are project managers of dedicated project management office, the other
two are team leaders and the remaining interviewee is RMO manager.

3.4 Data Collection Methods and Instruments

Generally, two types of instruments namely: Interview and Document Analysis were used for
the data collection. The primary data was collected through interview and document analysis
was used as secondary data collection instrument. In addition to those instruments, the
researcher has used his observation to fill the gap and strengthen the assessment.

3.4.1 Interview
It is important to interview right people who have rich knowledge about the studied
phenomenon; otherwise, there is a risk that the interviews not fulfill the purpose of the thesis.
In-depth interviews with project managers, team leaders and person related to project
management are made. The interview was aimed to get the interviews perception and deep
understanding about practices on their quality management system and it was made using
Semi-structured open ended questions.

3.4.2 Document Analysis

Document analyses are made to get secondary data. Both company documents and external
documents are analyzed. Company documents such as project charter, quality reports and
inspection certificates and other related documents gave empirical data about the facts in
their quality system and the external document which is written in the area helps to get
subject matter knowledge.

3.4.3 Observation
Observation helps to learn about behaviors in the natural setting and also to learn about
cultural aspects of settings or contexts. The researcher also observes related issued in the
company such as the companies project quality management culture, the quality of service
given by the company, customer satisfaction and the like.

25
3.5 Methods of Data Analysis
The analysis anchored to the statement of the problem, research objective and research
questions. In order to analyze and interpret the collected data, the qualitative analysis method
is employed. Data gather using the above instruments are coded after that analytic and axial
or hierarchical coding performed to the coded data. Synthesizing and making meaning from
codes was done in the last step. MS EXCEL software has been used to facilitate the data
analysis process and generate meaning. Finally, analyzed data has been summarized
qualitatively using sentences, phrases and words.

3.6 Reliability and validity

In qualitative study frequently the researcher himself is the data-gathering instrument. Thus
questions of researcher bias and researcher competency, if unchecked, may influence the
trustworthiness of data considerably. Even the validity of the data provided by the subject
can be affected by the very presence of the researcher. Due to the presence of the researcher
participants may distort certain information. In order to minimize this problem, the
researcher has to create social behavior in others that would normally not have occurred.
After her extensive fieldwork, Leininger holds that researchers need to be trusted before they
will be able to obtain any accurate reliable or credible data (Leininger 1991:92). Since it is
difficult to take training as a researcher or interviewer, the researcher will go through
extensive readings to prepare the interview questions for qualitative studies which help to
decrease the possibilities of introducing bias at various points of the research process.

In order to increase reliability and validity by decreasing biases from a different point in the
research process, the researcher has used the following approaches or techniques:
Triangulation, taking of repetitive data, checking for representativeness.

26
3.7 Ethical Considerations
The purpose of the study is to assess project quality management practice and agreement was
secured before data collection is launched. All the required confidentiality was maintained.
Participants have been also cleared about the intention of the data collected and the
information obtained from them would not be disclosed to any party without their
willingness. Participants have been also informed that the data collected is used only for
academic purpose. To ensure that privacy of the respondent, all identifying information like
their name was not used in the study. Participants were asked to take part willingly and
responded on their own accord.

27
 CHAPTER FOUR

RESULTS AND DISCUSSION

Chapter three was described and discussed the research design and methodology for which is
used for this study. Interview and observation were used as a qualitative data collection
method. The researcher reviewed different templates and validated the process of project
quality management practice in the company in order to crosscheck and validate the findings
by using multiple sources and from the literature review. The interview conducted was in-
depth and could enable the researcher to raise different issues for triangulating and
crosschecking the validity of the collected data.
The objective of this chapter is to provide the findings and results from the interview and
observation conducted by analyzing and interpreting the collected data, which achieved the
research objective which is to understand and present the project quality management
practice of selected private banks of Ethiopia.
4.1 General information about the participants
As mentioned in chapter three, in order to keep confidentiality, all the identifying
information of the participants is not mentioned. The researcher has used anonymous
identifiers P1, P2, P3, P4, P5, P6 and P7 for the interviews selected from Awash, Dashen and
United Banks. Since the sampling was purposive sampling all the project managers and
persons related to project management in the selected banks are interviewed. Three persons
were interviewed from one bank and two persons were interviewed from each of the
remaining two banks. Four of the selected interviewees are project managers of dedicated
project management office, the other two are team leaders acts as project manager of
currently executing project and they have more than 5 years of experience in the company
and in those years each of them leads more than 2 projects, and the remaining interviewee is
RMO manager, which controls the project management office in one bank.

28
All the interviews had been recorded and the answers from those interviews were carefully
grouped into the questions and summarized and presented separately for each question. The
main points related to each question are highlighted and special attention has been given to
ideas that were repeated by different respondents. First, the analysis has begun with grouping
related questions as one and then the analysis concentrates on the seven main questions that
were asked for all the project participants. Grouping related questions facilitate comparisons
between the contrasting points of views.

4.2 The project management process practiced by the study Banks

All of the respondents from the three banks have mentioned that they don‘t have a formal
project management process. Projects are managed in a traditional way by using their
managerial skill which is developed from their experience. Since the financial industry is
highly dependent on Information Technology, all the respondents mention that more than
80% of the projects in their company are IT projects.

P1 from United Bank explains that projects are managed by RMO which is the direct owner
of the projects. First, a business case will be crafted which explains why the project is
necessary. Strategy office will validate its alignment with the company grand strategy after it
is approved by the top management. Now RMO will take the responsibility to perform all the
pre-project activities. The team will be selected by RMO to perform RFP preparation by
requirement gathering and requirement definition. Once the RFP document is approved by
the top management the next step is to perform a bid as per the RFP. The team will be
formed by purchasing committee number one to evaluate the bid and select the winner by
performing a technical and financial evaluation. RMO then make the project on-board with
the bid winner. Now RFP is prepared, the vendor is selected and a proposal is submitted
therefore it is time to RMO to establish the project team. After project team formation RMO
assigns the respective functional unit to manage the project by providing project charter and
project plan. Those functional units will continue to control the project team and monitor

29
activities as per the agreed plan. They also report their status in scheduled time. There are
two committees named as a steering committee and portfolio committee which evaluate the
project team performance in terms of time, budget and scope.

P2 Dashen Bank explains that project management starts after once it is selected as a project
comes to Enterprise Project office. A task can be done by the respective business unit or by
Project office. The criteria to decide that and recognize a task as a project are a budget and
variety in the area of expertise it requires. Projects are handled by the dedicated and separate
office which is called Enterprise Program Management Office. The office has two wings
named project management and change management. The change management wing is
responsible to assess and monitor if the project is going in accordance with its plan. The
main focus of this wing is the changes in the project. The project management aspect is
handled by project management wing. As mentioned before, once the task fulfills the criteria
and identified as a project it will be done through an enterprise program office. Vendor
selection is the same as P1 and performed by an ad-hoc team which is formed temporarily.
PMO will participate as part of that team. Once the vendor is selected the project office will
take the response project charter will be prepared. The team will be selected and established
by PMO which includes the necessary specialists. Next requirement definition will be
performed by the team. Business owners (i.e. client of the project) will approve the
requirement document in order to confirm if it includes all the requirements and fulfills their
need completely. The vendor now will be provided with the requirement document and start
to execute the project as per the requirement document. Training will be provided to the team
during the project execution period. When the vendor performs project execution, PMO will
provide any necessary resource and facilitate the process. They also evaluate deliverables if
they meet the requirement which has been sat in the beginning. If the deliverables do not
meet the requirement the vendor will be requested to modify them as per the requirement
document, but if the deliverables meet the required project will be finalized and closure will
take place. Respondent also states that high-level project schedule is included in the charter,
and scope is prepared according to the requirement document.

30
P3 from Awash Bank has got a chances working with two private banks and he states that, as
far as my knowledge, project management practice in private banks is poor and it is difficult
to say that they follow the appropriate formal procedures to manage their project. Though the
banks form some ad-hoc project teams which are accounted for CEO when there are bigger
projects in the bank which needs special attention. Those project dedicated teams are under
the respective business units or departments. The lifetime of those teams will be until the task
is completed. Moreover the key informant states that even though there is a continuous flow
of projects in the bank, due to a shortage in the human resource we perform projects in
parallel with no dedicated team or project office. Project team members participate in the
project while they are in their daily operational task (job). Recently, as the bank is getting
bigger, the trend is also getting changed. By leaving the old trend, projects are managed by a
separate project office with the dedicated project team. But still the project office is formed
temporarily for one specific project and the lifetime of the office will be until the completion
of that project.

P3 from Awash Bank confirmed that the current trend of Project management in the bank
starts with the preparation of TOR. This TOR will include what the implementation of the
project looks like? What is the role of the project office, executive management, Board of
directors and different stakeholders of the project? It also includes a high-level schedule and
budget for the project. Then the TOR will be sent to the CEO for approval. CEO will discuss
it in executive management level and there will also be discussions with managers and
directors for confirmation. Once the discussion is done the TOR will be approved by CEO
and the project will be started. There is continuous evaluation of the project by the project
manager and status reports will be sent to top management including the CEO and board of
directors in scheduled time.

31
4.3 The process of selection of project managers and availability of dedicated
project management offices.

During the key infant interview it was learned that In Awash Bank there is dedicated PMO
for IT and construction projects. In Dashen Bank there is a dedicated Enterprise Program
management office, which acts as Project management office. In United Bank there is RMO
which is responsible to manage projects. Moreover they state that even though the trend is
changed by leaving the old and managed projects by a separate project office with dedicated
project teams still projects are managed by creating ad-hoc teams which are active only until
the completion of that specific project. Members for those ad-hoc teams are selected from
concerned functional units which have expertise in the business area. Once that specific
project is completed the team will be disseminated and join their previous functional unit. In
all three banks, project managers are selected regardless of their Project Knowledge formal
certification just based on their area expertise and management experience, especially in the
project area.

4.4 Project quality management plan, standards and quality management

process communication in the three Banks

All respondents say that there is no separate and formal quality management plan, procedure
or standard. They manage their quality as per the required criteria in the project plan or
project charter. Even for those projects that are implemented by dedicated Project
Management Office.
In United and Dashen banks more or less have well-structured and more formalized
communication mechanism between the project team and project manager and the project
manager and the top management as well. But in Awash Bank there is a weak and less
formal communication culture.
During the key infant interview it was learned that in United bank organize regular meetings
with the top management, steering committee to discuss about the implementation of

32
projects. A progress report is presented to the top management there and if there are any
questions from the top management will be asked. A progress report is also sent to the top
management via E-mail before the meeting. This progress report also includes quality
management status report. If there is any quality deviation it will be presented to the top
management and justify the reason for the deviation. All the resources which are required to
solve the problem are presented to the top management and the top management avails those
needed resources. There is also similar approach in Dashen bank except the project manager
has a weekly meeting with his project team. Status report from each of the team members
presented to him on that meeting, and the team members also raised if they have faced any
difficulties.

Key informants were also asked to describe if there are policies and procedures that govern
the quality management process. Accordingly, the result confirmed that there is no separate
and specific policy and procedure for quality management in all the three banks. As
mentioned above in question number three projects quality is managed based on the project
charter and the agreement which is made at the beginning of the project.

4.5 Turn a key project management and the role of the top management
With regard to managing customer expectation, all the three banks perform field assessment
via interview and questionnaires and they also have continuous communication with their
clients to assess and understand their customers.

Regarding the role of top management in project quality management process, all the three
banks mention that even though top management plays a great role in the project quality
management as well as the general project management processes, they don‘t give the
appropriate attention and commitment to projects. They don‘t review status reports on time
and they also not give feedbacks for those reports on time. They also miss meetings and that
affect the project quality management process and even the overall project management
process, which affects the final output of the project.

33
With respect to quality of turn a key project management, all three banks do not participate
in the quality management process of the project until the project is finished. All the project
quality management process is handled by the external contractor. They assure the quality of
the project when the contractor finishes the project and hands over it to them.

In the three banks the process is the same a counter team from a respective department is
established to validate the delivery of the project. Most of the time the projects are not a turn
a key type if there is one, it will not be a pure turn a key project, since most of the projects
are IT projects they need deep knowledge of the bank‘s environment. In that case, our team
will participate in the project with that contractor.

Regarding the presence of quality matrix in project management, the result revealed that,
there is no quality matrix in all three banks. The only criteria of their quality assurance are
the functional and non-functional requirements of the projects.
Since they have not a formal and separate project quality management process, the researcher
cannot find separate and independent document for the quality management plan and quality
metrics, due to the limitation of time the researcher reviewed project charter and project plan
of one randomly selected project from all three banks. Their project charters are formal and
complete it describes the objective, goal; requirement, business objectives, stakeholders,
constraints, assumption, security requirements etc. and they use as a reference throughout the
project to ensure the work is meeting stated objectives and resolve project issues. Were as the
project plans contains final list of tasks and define how projects activities coordinated,
monitored and how the team control their activities but they are not complete it ignores
determination of quality policies, setting quality objectives and specifying necessary
operational processes and related resources to fulfill the quality objectives.

The researcher observes verified deliverables for the selected projects. As mentioned in the
above sections, most of the projects perfumed in those banks are IT related projects and the
researcher observes three IT-related projects and one project which is not related to IT. The

34
researcher observes one project per each bank due to time and labor constraint. And the
result of this observation is discussed as follow.

4.6 Discussion of Results

The findings of the study can be categorized into five major categories, Commitment,
Awareness, Skill, Communication, and Process.

As per the respondents, since they are busy with other financial related tasks, top
managements don‘t give enough attention and they are not committed well to projects. To
improve project quality management process there should be strong leadership and
participation of top management in the quality management process should be increased
(Keng, & Hamzah, 2011). This is called ―non-delegable role of managers in quality
management‖ by Juran (Juran, 1999). In addition to the top management, there is also a gap
in the commitment of project teams because there are not dedicated staffs for the project and
most of the time project teams are selected to participate in the project while they are
performing their main tasks which are given by the bank.

All the respondents underlined that there is not enough awareness of project management in
the bank. As mentioned in chapter two, quality is difficult to measure and it makes the
project quality management process even more difficult when the awareness of stakeholders
is weaker. All the respondents have mentioned that they don‘t have enough skill and they
have not taken any formal education or training on project management. They are managing
those project offices based on their management skills and personal readings. As the study of
Massoud and Sayd investigated employee empowerment, training and supplier quality
management critical success factors for implementing total quality management. In that case
employee training and education contribute have a greater role in quality management
process (Massoud & sayd, 2013). The study by Ephantus, Hellen and Joseph conclude that
training an employee is a critical factor of quality management. The study further concludes
that training has a positive influence on the quality management process. From the above

35
statement, one can understand that training can enhance the Project Quality Management
Process (Ephantus, Hellen & Joseph, 2015).

The result of a study by Teena shows that communication is one of the key factors of the
quality management process and the absence of appropriate communication between
different stakeholders can affect the quality (Teena, 2014). Similarly, the result of the current
study confirmed that adequate and timely feedback from the top management is not given for
the reports from the project management.

Project Quality Management also supports continuous process improvement activities as

undertaken on behalf of the performing organization (PMI, 2017). PMI also states that
project quality management comprises the three project quality management processes, Plan
quality management, Manage quality, Control quality. All the respondents mentioned that
there is not separate and independent management process for project quality. All the three
banks do not have a formal procedure, guideline or standard for their quality management
process.

36
 CHAPTER FIVE

SUMMARY AND CONCLUSIONS

5.1 Introduction
This is the last chapter of the research and in this chapter; the researcher gives summary and
conclusions of the study‘s findings of the project quality management practice in selected
private banks. In the summary and conclusions, the researcher shows gaps of the studied
banks in their project quality management practice. Recommendations which improve
project quality management practice are also stated.

5.2 Summary and Conclusion

As per the interview‘s findings, there is less top management commitment to projects and
that makes difficult to accomplish projects with the intended quality. Those top
managements in the three selected banks give more attention to the other business-related
tasks. They will participate more on the quality control, which is assuring/approving whether
the intended project quality is achieved or not. Communication between different
stakeholders of the project is good especially between the top management and project
manager and the project manager and project team. Having a dedicated Project management
Office has a greater effect on project quality management process. There is not a well-
established dedicated Project Management Office, especially for those non-IT projects.
Formal project management qualification is not considered during project manager selection.
Project managers are just selected based on their management skill and area of expertise in
the respective area of the project. There is not enough training in on project management;
even it becomes none when it is specifically on project quality management. The last but not
least there is not a separate Project Quality Management process. It is performed implicitly
by embedding it in different tasks of the project which makes the project quality management
process difficult to perform and cannot get separate attention.

37
5.3 Recommendation
The researcher recommends the following points for better and improved project quality
management practice in private banks of Ethiopia, which also leads those banks to success
and make them a better competitor in the local and international market with quality products
and services which are produced from those projects which are passed through the better
quality management process.

Enough training about project management and specifically on project quality management
should be given to all project stakeholders, especially to the top management and the project
manager. In that way, it will be possible to create better awareness about project management
around them and make them give attention to project quality management.

Top management should give special attention and have a greater commitment to project
management process since it has a greater role in it. As mentioned in chapter two top
management commitments plays a great role in project quality management process. Hence,
there should be a great commitment and participation of top management in project quality
management process.

From chapter two‘s discussion, quality is one of the major constraints in the iron triangle and
it is also difficult to manage, because of that, there should be a separate and independent
process of project quality management which comprises the three project quality
management processes mentioned in PMBOK, Plan quality management, Manage quality,
Control quality. This will make the banks to give it appropriate attention and manage it well.
Having a dedicated PMO with its own Separate and permanent project team enables the bank
to give appropriate attention to projects. It also helps the banks to have a better lesson learnt
mechanism from previous projects. The team members will be only engaged in the project
tasks and they will give their best since they don‘t have any additional tasks in their working
office.

38
Communication is one of the key factors to have a good project quality management process.
Banks should have a well-established communication system between different project
stakeholders. This will allow the top management and the project manager to know the
current status of the project and make any corrective actions when it is necessary. Regarding
this especially, awash bank advise to establish well communication system between different
project stakeholders. All the project activities should be documented and kept for future
reference.

5.4 Future Area of Research

Future research can be carried out in two areas. The first is determine the possible caused for
the mentioned gaps in Project quality management practice of private banks of Ethiopia and
the second one is to assess the project quality management practice of governmental banks of
Ethiopian.

39
 References
Alemnew, A. (2010). Assuring Construction Industries‘ Development of Ethiopia Through
Quality Management: The Case of Expansion of Rural Road Access in Ethiopia. Addis
Ababa University. Addis Ababa Ethiopia.

Almossawi, M., 2001, Bank selection criteria employed by college students in Bahrain: An
empirical analysis. International Journal of Bank Marketing 19 (3), 115-125.

Amanuale, T. (2009). Cost of Quality Case Study in Zuqualla Steel Rolling Enterprise. Addis
Ababa University. Addis Ababa Ethiopia.

Andaleeb, S. S., and Conway, C. (2006). Customer satisfaction in the restaurant industry: An
examination of the transaction-specific model, Journal of Services Marketing, 20(1), 3-11

Asare, Adams Bediako (2017). Project Management for Developing Countries: Back to Basics.
Dama International Journal of Researchers (DIJR) 2 (4):05-09.

Asrat Arega. (2017). Assessing Online Banking Service Quality on Customers Satisfaction: The case
of United Bank S.C.

Asrat, M. (2011). Uses and Applications of Quality Engineering: The Case of Ethiopian Plastic Share
Company. Addis Ababa University. Addis Ababa, Ethiopia.

Birhan, G. (2008). Opportunity and challenges on implementing ISO 9001:2000 Quality

Management System in Ethiopian Enterprise. Addis Ababa University. Addis Ababa,
Ethiopia.

Birhanu Beshah and Daniel Kitawu. (2013). Quality Management Practice in Ethiopia. African
Journal of Business Management 8 (17): 689-699.

Chris Hart. (1998). Doiong a Literature Review. First Edition. New Delhi, India

40
Chin Keng, Tan & Abdul-Rahman, Hamzah. (2011). Study of Quality Management in Construction
Projects. Chinese Business Review. 10. 542-552.

Dagne, B. (2008). Quality Engineering in Ethiopian Pulp and Paper S.C. Addis Ababa University.
Addis Ababa Ethiopia.

Daniel Kitawu and Fasika Bete, (2003). Quality Management: Efforts and Problems in Ethiopian
Manugacturing Industries, department of Engineering, Addis Ababa University, Journal of
EEA.

Dr. Muhammad Asim, Dr. A. R. Zaki, (2012). Assessing the Viability of Quality Management in
Organizations - A Retrospective and Prospective Overview with Reference to Pakistan,
IOSR Journal of Business and Management (IOSR-JBM).

Eng. Ephantus Ndirangu, Dr. Hellen Mberia & Joseph Oduor, (2015), European Journal of Business
and Social Sciences, Vol. 4, No. 03, page 14-28

Eisner, E. W. (1991). The enlightened eye: Qualitative inquiry and the enhancement of educational
practice. Toronto: Collier Macmillan Canada.

FASIL ALEMAYEHU AND MERHATBEB TEKLEMEDHIN. (2012) The Birth and Development
of Banking Services in Ethiopia. Available at: https://www.abyssinialaw.com (accessed 14
April 2021).

Forrest W. Breyfogle III, John Wiley & Sons Inc. (2003) Implementing Six Sigma: Smarter
Solutions Using Statistical Methods, Second Edition, Austin, Texas

Francisco Javier Llorens Montes, M.Mar Fuentes-Fuentes and Luis Miguel Molina. (2003) Quality
management in banking services: an approach to employee and customer perception.

FREZEWD ALEMU. 2016 PRACTICE OF PROJECT RISK MANAGEMENT IN BATU AND

DUKEM TOWN WATER SUPPLY PROJECT.

41
Gartner (2017). Product life cycle management. Available at: https://www.gartner.com (accessed 18
April 2021).

GIRMA BERSISA. 2015. Assessment of Service Quality and Its Influence on Customer Satisfaction:
The Case of Oromia International Bank SC.

Haben B (2008). ―Quality Award and ISO Quality Management Systems to Promot quality in
Ethiopia Manufacturing Industies‖, Unpublished M.Sc. Project, Addis Ababa University,
Addis Ababa Ethiopia.
Hackl, P. &Westlund, A.H. (2000). ―On structural equation modeling for customer satisfaction
measurement, Total Quality Management, 11(4/5/6), pp. S820-S825‖.

Juran, J. M., ed. (1999), Juran‘s Quality Handbook, McGraw-Hill, New York.

Kenneth H. Rose. 2014. Project Quality Management Why, What and How, Second Edition.

Kerzner, H. (2009). Project management: a systems approach to planning, scheduling, and

controlling. 10th ed. Hoboken, N.J.: John Wiley & Sons.

Konstantinos St.Kousouris. (2009) Project Quality Management Application in the Financial Service
Industry. CityUniversity of Seattle.

Kotler, P. and Armstrong, G. (2012) Principles of Marketing. 14th Edition, Pearson Education
Limited, Essex, England.

Leininger, M. 1991. Culture care, diversity and universality: A theory of nursing. New York: N.L.N.

Levesque, T. and McDougall, G.H.G. (1996) Determinants of Customer Satisfaction in Retail

Banking. International Journal of Bank Marketing, 14, 12-20.
Massoud M. Arshida & Sayed Omar (2013), Critical success factors for Total Quality Management
Implementation with in the Libyan Iron and Steel Co, Proceedings on International
conference on Information and Social Sciences Nagoya Japan, September 24-26
Meri Williams. 2008. The principles of project management, First Edition.
42
Mesafint, A. (2008). Quality Management System in Addis Ababa Private Hospitals. Addis Ababa
University, Addis Ababa Ethiopia.
Mesay Sata Shanka Bank Service Quality, Customer Satisfaction and Loyalty in Ethiopian Banking
Sector Journal of Business Administration and Management Sciences Research Vol. 1(1), pp.
001-009, December, 2012

Mikiyas Feyissa. (2018). THE ROLE OF PROJECT LIFE CYCLE MANAGEMENT ON PROJECT
SUCCESS – THE CASE OF TOTAL ETHIOPIA S.C.

Mullualem, T. (2014). Assessment of Major factors that leads to software project failure: A case
study of Addis Ababa. Thesis submitted for partial fulfillment of master‘s degree in
information science. Addis Ababa University.

Naik, C.N.K., Gantasala, S.B., Prabhakar, G.V. (2010) Service Quality (SERVQUAL) and its Effect
on Customer Satisfaction in Retailing, European Journal of Social Sciences. 16(2). 231-243

Negalign, A. (2011). Quality Management Practices: The Case of Harar Brewery Share Company.
Addis Ababa University. Addis Ababa Ethiopia.

NETSANET BIRHANU. 2017. AN ASSESSMENT OF SERVICE QUALITY AND CUSTOMER

SATISFACTION: THE CASE OF DASHEN BANK S.C

Parasuraman, A. Berry, L. and Zeithaml, V.A. (1985), A Conceptual Model of Service Quality and
its Implication for Future Research, Journal of Marketing, 49(4), 41-50.

Rahel Dinku. (2017). Assessment of Project Quality Management Practice: Case Study of Ethiopian
Construction Design and Supervision Work Corporation (Ecdswco.)

Saunders, M., Lewis, P. and Thornhill, A. (2009) Research Methods for Business Students Pearson,
New York.

Stafford, M.R. (1996) Demographic Discriminators of Service Quality in the Banking Industry,
Journal of Services Marketing, 10, 6-22.
43
Stojcetovic, B. Lazarevic, D. Prilincevic, B. (2014) ‗PROJECT MANAGEMENT : COST , TIME
AND QUALITY‘, pp. 345–350.

Tamara Gvozdenovic, Mirjana Miljanovic, Aleksandar Jegdic, Zeljko Crnogorcic. Bodies Of

Knowledge In Project Management And Project Quality Management, International Journal
for Quality research

Teena Joy (2014), A Study on Factor Influencing Quality of Constraction Projects, International
Journal of Innovative Research, Vol 3, Issue 5, page 384-387

Tessema, B. (2008). Quality Related problems in large Ethiopian manufacturing firms: Implications
for Competency. South African Journal of Industrial Engineering, South Africa.

Tracy, S. J. (2013). Qualitative research methods: Collecting evidence, crafting analysis,

communicating impact. Hoboken, NJ: Wiley-Blackwell.

Turner, J.R., 2009. The Handbook of Project-based Management, third ed. McGraw-Hill Publishing,
Glasgow.

Wondifrawu, B. (2010). Management System and Industrial Development the Case of Ethiopia.
Addis Ababa University. Addis Ababa, Ethiopia.

Yegidis, B. L., & Weinbach, R. W. (1996). Research Methods for Social Workers, 2nd Edition,
Allyn and Bacon, Boston, Massachusetts.

Yitagesu, Y. (2009). Statistical Quality Control and Its Discontents. Addis Ababa University. Addis
Ababa Ethiopia.

Zeithaml V.A. and Berry L.L. (1985). Problems and Strategies in Services Marketing, Journal of
Marketing, 49, 33-46

Zerihun Moges. (2017). Assessing the relationship between Project Management Maturity and
Competitiveness: The Case of Commercial Bank of Ethiopia. Addis Ababa
44
 APPENDIXS

Appendix I: Semi-structured interview Questions

Good morning/ afternoon/ evening Sir/ Madam

My name is Michael Eshete. I am a graduating student from St.Marry‘s University, school of

graduate studies department of project management. Currently, I am conducting research
titled ―Assessment of Project Quality Management Practice: In The Case of Awash, Dashen
and United Bank‖ as a partial fulfillment senior essay required for MA degree.
Therefore, the researcher would like to express his deepest gratitude for your cooperation in
answering the following interview questions. The very purpose of this research is to assess
the practices of project quality management in Awash, Dashen, and United Bank. Targeting
to review and evaluate planning, managing and controlling process of the project quality,
assessing any gaps and put possible recommendations for them. In addition, the project
successfulness will be verified and appraised. This being said, it should be noted that the
research mainly depends on the accuracy of your answer. Lastly, the researcher would like to
assure you that the data being collected from you will be presented anonymously and kept
under strict confidentiality.
1. How the project management process practiced in your company?

2. Is there a dedicated Project Management Office?

3. How are Project Managers selected?

4. Do you have a quality management plan, procedure or standard?

5. How do you communicate your quality management process with different bodies?

6. Is there and policy and procedure to govern the project quality management process?

7. How do you manage your customer expectation?

8. What is the top management role in project quality management process?

9. How do the quality of turn a key projects managed?

10. Is there any quality matrix? What are the criteria for your quality assurance?

45
11. What are the internal and external stakeholders participate in the project quality
management process?

12. Do you have any quality audit process or procedure?

13. Is there any training related to project management, especially on project quality
management?

14. What general problems do you face related to Project Quality Management process?

46