EFFECT OF EARNED VALUE MANAGEMENT AND CRITICAL CHAIN FACTORS ON SUCCESSFUL PROJECT IMPLEMENTATION IN CONSTRUCTION COMPANIES IN SOUTH EASTERN NIGERIA

ABSTRACT

This study focuses on effect of earned value management (EVM) and critical chain (CC) on successful project implementation in construction companies in South Eastern Nigeria. Here 7 objectives was explored to undertake this study and the hypotheses structured in line with these 7 objectives. A sample size of 759 was determined from the population of 14868 drawn from the employees of 12 selected construction companies in South East Nigeria using a combination of the Godden (2004) sample formula, and the sample estimation technique of Unyimadu (2005), Nwanna (1922) and Israel (1922). The major instruments used for primary data collection was the questionnaire and oral interview. The questionnaire was structured using 5-point Likert scale in line with the 7 objectives of the study. Cronbach Alpha was objectively used in testing the validity and the reliability of the research instrument. The result was above 0.70 in all, indicating a high degree of relationship. The tests of hypotheses 2 and 3 were carried out using the multiple regression analysis and hypotheses1, 4, 5, 6 and 7were tested with t-test. The findings showed that there is significant perception of EVM and CC on successful project implementation in construction companies in South Eastern, Nigeria. The study disclosed that the issues relating to these techniques for project performance measurement are significant on successful project roimplementation in construction companies in South Eastern, Nigeria. It was also revealed from the study that CC factor in implement EVM process and CC as a performance indicator for effective measurement significantly ensures successful project implementation in construction companies in South Eastern Nigeria. The study identified inadequate budgeting and schedule/ work-breakdown structure (WBS) integration as the key challenges of EVM and CC on successful project implementation in construction companies in South Eastern, Nigeria. Furthermore, the study discovered that EVM and CC make significant and positive contribution to improved project management practice on construction companies in South Eastern Nigeria. The study also revealed that there are positive implications of EVM and CC in management control, cost performance index on success of project execution. Finally, that there are significant correlation between the use of EVM and CC with each phase of the project life cycle and success in construction companies in South Eastern, Nigeria. The study concludes that the effective practice of EVM and CC shall lead to a number of benefits to the organization as in maximizing performance, enabling time and cost management and synergistically driving project performance measurement strategies to a fruitful end. The study recommended that, the construction companies should adopt the use of EVM and CC thereby focusing on the key criteria of well defined project spectrum, goals, parameter, and project control mechanism in order to enhance successful project implementation, also that the construction companies should embrace well formulated procedures for performing work, integrate planning and teamwork in order to monitor and control their daily task to attain successful end.