Validation of project management information systems for industrial construction projects
Validation of project management information systems for industrial construction projects
Validation of project management information systems for industrial construction projects
To cite this article: Jaehyun Choi & Minhui Ha (2022) Validation of project management
information systems for industrial construction projects, Journal of Asian Architecture and
Building Engineering, 21:5, 2046-2057, DOI: 10.1080/13467581.2021.1941999
CONSTRUCTION MANAGEMENT
1. Introduction
The objective of this study is to define the essential
1.1. Research objective
functions that PMIS must perform based on global
Project Management Information Systems (PMIS) have project management standards and also to develop
been widely used for effective and efficient construc evaluation criteria for existing PMIS. The researchers
tion project management, especially for EPC presented a methodology to verify and validate the
(Engineering, Procurement, and Construction) pro composition and functions of PMIS to ensure it con
jects. With the help of information technology, PMIS forms to the standards of global project management
serves as an essential tool to save, share, and provide practice. By using the evaluation criteria, PMIS devel
key information required for decision making. As the opment tasks for most EPC projects become more
scale and complexity of EPC projects have increased in sustainable.
the global market, effective application of PMIS
throughout the whole project execution process
1.2. Research methodology
becomes more important. The advantage of PMIS is
to generate project information during the project’s In order to evaluate the validity of PMIS, the research
execution process and provide the information to var ers developed evaluation criteria by identifying the
ious project participants who require different infor core management processes (CMP) and sub-
mation to support their management decisions. An management processes (SMP) from the project man
effective PMIS application saves significant amounts agement process group. The CMP include schedule,
of time and effort, making project management tasks cost, and risk management process even though pro
more sustainable. Thus, development and utilization of ject management process groups include other man
PMIS is perceived as an essential tool to project suc agement processes such as integration,
cess. However, most EPC firms develop and use PMIS communication, quality, etc. The global project man
without verifying and validating the system’s compli agement standards include the standard of practice
ance with global project management standards. As from Construction Management Association of
PMIS application increases, it is very important to eval America (CMAA), Project Management Body of
uate validity of PMIS functions developed for the glo Knowledge (PMBOK) from Project Management
bal EPC projects. The PMIS developed and utilized on Institute, International Standard Organization (ISO),
a project basis needs to be compliant with the global and International Federation of Consulting Engineers
project management standards. (FIDIC).
CONTACT Minhui Ha [email protected] School of Architectural Engineering, Korea University of Technology and Education (Koreatech),
Engineering Building II, Chonan, Chungnam 31253, Korea
© 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group on behalf of the Architectural Institute of Japan, Architectural Institute of Korea and
Architectural Society of China.
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JOURNAL OF ASIAN ARCHITECTURE AND BUILDING ENGINEERING 2047
From these standards, the researchers developed 2.2. Global project management standards
a proposed global practice (PGP) for each SMP. Each
A standard is a formal document that describes estab
PGP represents specific tasks that the PMIS functions
lished norms, methods, processes, and practices. As
carry out to ensure the PMIS used for the EPC projects
with other professions, the knowledge contained in
conform to the global project management standards.
this standard has evolved from the recognized good
This study was conducted using the following
practices of project management practitioners who
procedures.
have contributed to the development of the standard.
The purpose and function of PMIS were defined
Global project management standards incorporated
through the existing literature review.
into this research include PMBOK, Standard of
The CMP and SMP by project execution phase
Practice from CMAA, ISO 21500, and FIDIC book even
was defined from global project management
though PRINCE 2 (PRojects IN Controlled
standards.
Environments) and the Standard by IPMA
Required capability levels per SMP were defined.
(International Project Management Association) are
PGP was developed by using process mapping
also generally accepted.
diagrams.
Evaluation Criteria were developed to evaluate
whether PMIS is performing in accordance with the 2.2.1. PMBOK
PGP workflow. A guide to the PMBOK provides guidelines for mana
A sample PMIS was selected to evaluate validity ging individual projects and defines project manage
according to the evaluation criteria. ment related concepts (Lee, Lee, and Yu 2010). It
defines 10 important project management knowledge
areas, including integration, scope, schedule, cost,
2. Literature review quality, resource, communications, risk, procurement,
and stakeholder management. It also describes the
2.1. PMIS project management life cycle and related processes.
The PMIS provides access to management tools, The PMBOK Guide contains the globally recognized
such as cost, schedule, documents, work authoriza standard and guide for the project management
tion, configuration, information collection and dis profession.
tribution, or interfaces to other systems (Lee, Lee,
and Yu 2010). Automated gathering and reporting 2.2.2. CMAA standard of practice
on key performance indicators can be part of PMIS. CMAA’s standard contract (CMAA document A-2), the
PMIS refers to new means of project and construc general terms (CMAA document A-3), and the standard
tion management for efficient management in contract form between the owner and the contractor
order to optimize construction duration and cost are presented as a standard contract form (CMAA
expenditure by supporting prompt and accurate 2015). The content consists of relationships with the
decision-making (PMI 2013). It collects and shares parties, project definitions, basic services, additional
various information related to construction man services, duration of construction manager (CM) ser
agement practice for the purpose of successful vice, basic services and compensation of construction
project execution. Research on PMIS has been con manager (CM), responsibility of owner (operator), com
ducted in various ways. Taherkhani (2018) identi pensation for CM services and payments, insurance
fied key success factors of PMIS by performing and mutual compensation issues, termination and sus
hypothetical tests and concluded PMIS influenced pension of contract, dispute settlement, and additional
the performance of projects. Required functions for provisions.
PMIS were pointed out by analyzing contract and
cost payment method of construction projects 2.2.3. FIDIC Silver Book
(Kang et al. 2015). PMIS for construction claims Established in 1913 by the Association of Consulting
was studied to manage project information dedi Engineers, FIDIC is an organization that operates in
cated to claim issues (Wang, Park, and Choi 2018). three European countries and regularly announces the
Tulupov (2020) pointed out the problems of PMIS terms of standard contracts applicable to international
from the aspects of business and IT and developed construction contracts (Choi 2002). Currently, FIDIC con
a methodology to integrate PMIS with enterprise tract terms are the most widely used international stan
resource planning solutions. These research com dard worldwide. Most of the public development
monly analyze construction project management projects, such as the West Bank for Reconstruction
tasks and develop work processes to derive func and Development (IBRD) and the Asian Development
tional requirements. In order to develop an effec Bank, are referenced by many international construc
tive PMIS, the functions built into PMIS needs to tion contracts, even if they are not directly used. The
be structured and standardized (Yu and Lee 2004). official name of the FIDIC Silver Book is “Condition of
2048 J. CHOI AND M. HA
Contract for EPC/Turnkey Projects” (Yoo et al. 2011). It is the system meets the goals and requirements to vali
used as an international standard contract that applies date that the product desired by the user has been
to EPC projects that are both responsible for engineer developed. Previous research indicated successful
ing, procurement, and construction (FIDIC 2017). application of PMIS’s heavy reliance on the factors of
user intentions and user satisfaction (Sung et al. 2012).
2.2.4. ISO 21500 Thus, most PMIS developers significantly improved
ISO 21500 is an international standard that provides system architecture and user interface. This approach
project management guidance (ISO 21500 2013). This is limited to the users’ perspective regardless of
international standard describes the concepts and pro addressing global project management standards.
cesses considered best practices in project manage
ment. This international standard provides guidance 3. Development of evaluation criteria for
on project management and is applicable to any type PMIS
of organization, including government, public institu
tions, enterprises, non-profit institutions. It has the char 3.1. Defining a project phase
acteristics to be applicable to all projects regardless of General phases to execute EPC projects are “Bidding”,
project complexity, scale and duration. ISO 21500 “Planning”, “Engineering”, “Procurement”,
describes 11 important project management areas, “Construction” and “Start-up”. In PMBOK, the phases
including project management, organizational strategy, of the project are comprised of “Initiating”, “Planning”,
project environment, project operation, and life cycle of “Execution”, “Control” and “Closing”. Each includes
project. It also consists of five process groups for project tasks from the planning of the EPC project to the start-
management, including initiation, planning, implemen up phase. In CMAA SOP, the project’s phases consist of
tation, control, and termination, as well as ten subject “pre-design”, ‘design ‘, “procurement”, “construction”
groups: stakeholders, scope, resources, cost, time, risk, and “post-construction”. In this study, the phases of
quality, procurement, communication, and information. the project were organized into “Bidding”, “Execution”,
and “Closing” phases from the perspective of EPC pro
ject contractors, and the “Execution” phase was further
2.3. Software validation method divided into “Planning” and “Progress Control” phases.
Software testing includes a verification and validation The definitions for each phase are shown in Table 1.
process (Eom et al. 2004). Verification is the process of
determining whether the input of each process con
3.2. Defining management processes and
forms to the output of the previous process during
required capability levels
the software development phase (DeLone and
McLean 2003). It enables users to be confident that From the three CMP (time, cost, and risk management),
the software is designed and implemented as SMPs and required capability levels are defined in
intended. More specifically, such a process verifies accordance with global project management stan
that the software is developed as desired by the dards. SMP means the mandatory tasks required for
user and that the system operates according to user managing EPC projects. For example, time manage
requirements described in the requirements specifica ment as a CMP includes SMP’s “Contract schedule pre
tion. Verification is performed at the design, imple paration”, “Evaluating project duration”, “Scheduling
mentation, and testing stages, and the system is management planning”, “Progress tracking”, and
examined as to whether or not the results of each “Performance trending”, and “Schedule record man
previous step of system development are correctly agement”. Capability levels are defined based on the
reflected and consistent with the specifications set CMAA guidelines and examples of EPC projects, mean
forth in the previous step. ing the capability required to perform each SMP.
Validation involves whether or not the results of the
requirement specification reflects the needs of users 3.2.1. Project time management
and the developed software product meets specifica Project Time Management includes all the tasks to
tions (DeLone and McLean 2003). This process ensures complete the project scope, including planning,
Table 2. Sub-management process and required capability levels of project time management.
Project
phase SMP Required capability levels
Bidding Contract schedule Capability to prepare a schedule according to the contract requirements provided by the owner
preparation
Evaluating project Capability to provide information for decision-making by analyzing the construction duration for the contract
duration schedule
Planning Scheduling management Capability to define activity using critical path method (CPM) based on work breakdown structure (WBS) as
planning defined in scope management. Establishes a master and baseline schedule by calculating the activity logic,
resources, and duration
Progress Progress tracking Capability to monitor performance against plan during execution, monitor progress status, and analyze project
control delays
Performance trending Capability to determine necessity of schedule revision for issues such as schedule delay, and provide
information for alternatives when necessary
Closing Schedule record Capability to systematically store and reuse productivity, resource utilization information used to execute
management projects
progress tracking, and reporting of progress from the 3.3. Proposed Global Practices (PGP) and work
bidding to the closing phases. The Sub-management process development
processes for each stage of the project and required
Once SMPs and required capability levels were
capability levels are shown in Table 2.
defined, Proposed Global Practices (PGP) were devel
oped for the CMP’s (Time, Cost, and Risk manage
3.2.2. Project cost management ment) as seen in Tables 5–7. Global project
Project cost management requires capabilities, from management standards and the corresponding con
home office and site-level cost management to projects tents were also identified for each PGP. For example,
executed by integrated process management. It includes “Contract schedule preparation”, one of the SMPs for
the capability to analyze the feasibility of the cost plan, Time management, and PGP were defined as “PGP-
budgeting, and cash flow from the bidding phase to the SH-01, Proposal schedule” based on CMAA, PMBOK,
project execution, and manage project cost in conjunc and ISO 21500. Furthermore, the work process for
tion with the enterprise resource planning (ERP) as the each PGP was developed using process diagrams.
project progresses. Project cost management includes Among the work process diagrams that the research
the function of monitoring cost progress based on con ers developed, three samples were displayed as seen
tact agreement with the owner and sub-contractors and in Figures 1–3.
reporting of the progress. The SMPs for each phase of the
project and required capability level are shown in Table 3.
3.3.1. PGP’s and work process for time
management
3.2.3. Project risk management PGPs for time management consist of nine work
Project risk management includes identifying risks in the processes from “PGP-TIME-01, Proposal schedule”
bidding phase and maintaining risks registered through to “PGP-TIME-09, Extension of Time analysis”, as
out the project execution and closing phases. A response seen in Table 5. Once a project schedule was pro
plan for identified risks means avoiding, transferring, posed (TIME-01) and agreed upon by the project
accepting, and reducing risks and requires the capability owner in the form of a baseline schedule (TIME-04),
of management to make the optimal decision based on the progress in every phase of execution is mon
evaluation. The SMPs for each phase of the project and itored (TIME-06) to prepare a comprehensive pro
required capability level are shown in Table 4. gress report. When variation increases between
planned and actual progresses, and if it is deemed “PGP-COST-07, Final Cost report/Project closeout”, as
necessary to establish recovery plans from the pro seen in Table 6. The purpose of establishing a cost
gress delay, the recovery plans are established. management plan is to complete the project within
the target budget. Project budgets are determined
3.3.2. PGP’s and work process for cost based on the contract information and the budgetary
management criteria. It is important to review contract terms in the
PGPs for cost management consist of seven work pro contract documents so that the entire project scope is
cesses from “PGP-COST-01, Contract Cost Analysis” to evaluated and captured when developing project
JOURNAL OF ASIAN ARCHITECTURE AND BUILDING ENGINEERING 2051
budgets. Table 6 shows PGPs developed for SMPs of analyzed by comparing them with previous similar
cost management. projects and their historical data. Development of
Evaluation Criteria
3.3.3. PGP’s and work process for risk management Through the defined Sub-management process and
The purpose of the project is to establish procedures Proposal Global Practice, PMIS evaluation criteria were
and standards for the types of tasks so that appropriate developed as shown in Table 8. The evaluation criteria
risk management tasks can be carried out during the ensure a PMIS complies with management functional
project. requirements by the global project management
standards.
PGPs for risk management consist of five work
The time management clearly defines the organiza
processes from “PGP-RISK-01, Plan risk
tional structure. It assesses whether the project pro
Management” to “PGP-RISK-05, Risk Monitoring”, as
gress management is managed by a regular reporting
seen in Table 7. Prior to risk identification, the
system and whether a response plan, such as addi
project is investigated through each aspect of
tional resource inputs and resource reassignment, is
strengths and weaknesses to expand the scope of
established to respond if the progress of the project
risk. The project risk team gathers ideas and infor
differs from the plan. Furthermore, it determines if the
mation to identify risk items. Once the items are
task is planned to facilitate revision or track when
identified, they are grouped by Risk Breakdown
changes occur.
Structure (RBS). The items are reviewed and
Cost management evaluates whether a cost execu Risk management establishes risk management
tion plan has been established and whether guidelines during project execution and evaluates
a management plan has been established to regularly whether they are planned to be identified, analyzed,
understand the current status of the execution costs by and managed periodically. Therefore, the assessment
predicting the total cost of the project. of whether PMIS includes PGP’s work or conforms to
the standards of international project work is
JOURNAL OF ASIAN ARCHITECTURE AND BUILDING ENGINEERING 2053
Table 8. (Continued).
CMP SMP PGP Evaluation criteria
Risk management Risk management plan PGP-RISK-01
Plan risk management
● Do you systemati
cally and continu
ously manage risks
by establishing
a risk management
plan throughout
project execution?
● Do you define the
standard method
of performing risk
management?
Risk identification PGP-RISK-02 ● Do you compare and manage the relative impact of risk factors by applying risk
Identify risks management plan?
Risk analysis PGP-RISK-03 ● Do you define the level of probability and impact for the identified risks and
Risk analysis categorize them by risk types (qualitative analysis)?
● Do you analyze and evaluate the impact of a project risk by quantifying the
individual impact on the project (quantitative analysis)?
Risk response plan PGP-RISK-04 ● Do you respond to risks by establishing risk response procedures?
Establishing a risk
response plan
Implementing risk PGP-RISK-05 ● Do you respond to risks through implementation procedures?
response plans Implementing risk
response plans
Risk Control PGP-RISK-06 Risk ● Do you systemati
Monitoring cally monitor risks
according to the
risk management
plan?
● Do you revise the
plan for potential
risks related to pro
ject execution?
evaluated through the 5-point scale evaluation rating 4.1. Time management
system in Table 9.
Time management module (level 1) consists of func
tions for Baseline Schedule, Plan Schedule, Control
Schedule, Master Schedule, S-Curve, Primavera I/F
4. Validation of evaluation criteria
(level 2). Level 2 functions include detailed functions
The researchers selected a PMIS for implementing and (level 3), including activity details, crew and resource
validating the evaluation criteria. The PMIS consists of lists, as well as a milestone schedule, progress track,
seven modules, including contract, time, cost, risk, S-curve, and data log. Planning and progress tracking
document, quality, and project administration. Each in addition to a performance trending function were
module provides the user with the required manage integrated with cost management modules.
ment functions. In order to validate developed evalua
tion criteria, three modules (time, cost, and risk
management) were selected. Figures 4–6 are the 4.2. Cost management
screenshots of each management module. The cost management module is designed to monitor
cost expenditure progress execution from the project
budget. It includes functions such as a bill of quantity, 4.4. System evaluation results
cost breakdown (CBS) list, unit cost list, overall cost
The sample PMIS was evaluated in conjunction with
progress, actual cost, EVMS, and cash flow projection.
the PGP’s of the evaluation criteria developed. The
result is seen in Figure 7. PGP rating scores for time,
cost, and risk management appeared over average. For
4.3. Risk management
time management, PGP-02_Construction duration
The risk management module is designed to import adequacy analysis, PGP-06_Progress control, and
the risk information from the resource breakdown sys PGP-08_Schedule recovery plan scored the highest,
tem (RBS) to the risk management system. It includes while PGP-05_Details progress schedule and PGP-
functions of the RBS list, risk identification, risk evalua 09_Claims review scored the lowest. Construction
tion, monitoring, and tracking. duration is one of the most critical contractual
obligations. In order to complete the construction budget amount. Because the actual cost was
duration, progress tracking and recovery planning tracked from the ERP system, the ERP integration
become core tasks. was an important function in the sample PMIS.
For cost management, PGP-03_Estimate costs For risk management, PGP-02_Identify risk and
and PGP-06_ERP integration scored the highest PGP-03_Risk analysis scored the highest, while
while PGP-01_Bill of quantity and PGP- PGP-06_Risk monitoring scored the lowest. The
04_Determine budget scored the lowest. Cost esti function of PGP-02 discovers specific risk factors
mation is the critical task of coming up with the that may affect the scope, quality, schedule, and