National Highway Project Management and its Leadership Performance Evaluation - The Case Study of China

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1 National Highway Project Management and its Leadership Performance Evaluation - The Case Study of China HE Jian-Long 1,Hui-Sheng 2,Genglin Wang 3, Chen-Yan 4 (1. * School of Automation,Northwestern Polytechnical University,Xi an, China,710072; emba@mail.nwpu.edu.cn. 2. School of Management,Yu lin University, Yu lin city, China, Changan University, Xi an, Chian, Xi an Transportation department,xi an, China.) Abstract - In this paper, the author takes one under construction large-scale highway projects as an example, systematically analyzes problems existing in national construction and management of large highway projects, and gives a specific solution combined with principles of management performance evaluation. Under leader Performance Evaluation index selection principle, combined with of highway construction of WH tenders for instance, the author establishes the assessment standards from three different dimensions for functional departments and many teams on operating level in a project manager Department. The corresponding index system consists of three first grade indexes and 39 secondary indexes. construction units and local governments, the worsening relationship between public and government. Leaders of large Chinese construction enterprises are constrained by the government performance evaluation. The assessment-oriented influence is even greater than that of profit, and this is a special phenomenon in current construction enterprises in China. Because of this, it is a difficult issue for Department of Highway Project Manager to scientifically evaluate its functions departments and operator stakes. The registered capital of Second Highway Engineering Bureau Co., Ltd of China Transportations is 857 million Yuan, with total assets of more than 10 billion Yuan, and management and technical backbone of about In 2009 its I Introduction operating income is billion Yuan; the total profit China's highway construction projects usually have a long construction period for 3 to 5 years. Due to the infection of domestic and international construction markets and public policy, when construction material prices increase exceeds the capacity of the contractor, it will have a negative impact on engineering performance of the contract, which leads to severe unilateral breach of contract, schedule delays, and even the fight between is 432 million Yuan, and the whole labor productivity is million Yuan / person. The new contract in mid-2010 exceeds 20 billion Yuan; the annual operating income is 16.8 billion, and total profit is 300 million Yuan. This company constructed a number of representative overseas projects, which are distributed in six countries. The company has more than 200 construction projects, which are distributed in 29 cities

2 in China. The Second Highway Engineering Bureau is of great management innovation and technology capability in China, and has 20 utility models on road and highway construction industry, the long-span suspension bridge, and cable-stayed bridge, 5 national level construction methods, and 57 new records in China. This article takes the highway project construction of the Second Highway Engineering Bureau as an example (Figure 1 a Cross River Bridge). This article focuses on highway project cost from the perspective of project management performance evaluation, and focuses on the micro-level of technical analysis. Cost plan is a periodic plan made by the project manager Department about the cost of functions department and operating teams and machine consumption. This study researches the internal functions Department and operator teams in manager Department; the corresponding project cost plan is an inner management method for project manager Department. In practice, the experience of construction company constantly turns into theory [1]; in theorists, highway project management mentions traffic control centralized [2]-[15], project management, performance evaluation [16]-[20] and engineering technology; However, there are few research literatures that can be used for the inner evaluation of project manager Department. Figure 1 Crossing-River Highway Bridge II leader Performance Evaluation index selection principle Due to the Specific conditions in China, the large construction companies are controlled strictly by the government, therefore, government performance evaluation directly affects the business leaders construction orient. In current, local government includes state-owned enterprises in its area in the annual assessment. In this paper the local governments performance evaluation indexes are divided into 3 function modules by strategic human resource management structures: the organization strategies, the higher assessment and internal management (i.e. use of personnel selection tools for effective management). In this article, each functional module and their specific indexes are set in accordance with different nature of different public sectors in actual work. First the organizational strategy and objectives should be defined and then down to every level of assessment indexes, based on which the specific indexes are designed. See

3 Figure 2 for indexes selection. Figure 2 evaluation indexes selection Note: Qualitative; Quantitative; Party-sector; Government departments; County government; Organizational strategy; Higher assessment; Internal management; Basic principles; indexes selection; Contingency factors; Index system; Organizational strategy index; Higher evaluation index; Internal management index. There are two different types of indexes in the performance examination : qualitative indexes and quantitative indexes. Different types of indexes have different evaluation criteria and treatment methods. Therefore, in the indexes designing, a certain dimension of qualitative indexes and quantitative indexes should be added to provide the basis for assessment computing. See Figure 3 for performance evaluation indexes levels. Figure 3 evaluation indexes levels Note: Organizational strategy; Organizational target; evaluation indexes; Party-sector index; Government departments index; County government index;index1. Construction business leaders are directly affected by local government or the central evaluation function departments. In cooperation with the Government, enterprises can avoid some of the risks, but also in the same time needs to accept the assessment of the Local government, which is the fundamental one of the bases for the internal assessment of each unit of the enterprises. III Highway projects assessment criteria under the principle of criteria selection principle A. Assessment for the cost plan of highway project The highway project cost can be predicted through fixed method, measurement method (physical volume analysis), and empirical estimates, at the same time, it

4 can also be calculated through the actual cost values of the last analysis. If the highway cost plan is set, the corresponding cut margin objectives can be identified (Figure 4). process Project cost planning process includes analysis of bided budget, determination of stage cost targets and preparation of project cost plan. The content of the On-site provision The cost plan project Direct costs Labor costs Other direct costs Materials Machinery costs Figure 4 the cost of the project cost Therefore, the highway cost plan is to refine and support the project stage cost goals, which is more operational than bided budget and stage cost control objectives. It is the cost control index for the assessment of all functional departments in project manager Department. Project cost consists of direct costs, construction ancillary costs, and on-site provision, as well as labor, machinery, material and related costs. Labor costs include: general workers pay, maintenance workers pay and other various subsidies; machinery costs include: machinery rental fees, depreciation, maintenance (overhaul as amended), machine drive salaries; materials cost include: the main material and the construction auxiliary materials. See Annex 1 for detailed project cost of a highway the cost of composition. B. Assessment on Highway project cost planning evaluation on operational level is to evaluate the adequacy of its contents, whether it has the corresponding workflow in accordance with the Project Manager Department, and workflow optimization itself. Analysis of bided budget focuses on assessment of the higher authorities on project manager department in order to execute the office (company) strategy well. Bided budget is a comprehensive document the Bureau (the company) issued to the Project Management Department. Its purpose is to clear the Department's target cost and various economic indexes to be completed, which is based primarily for the Bureau (Company) to sign an operation contract with the project Manager Department, and also an evaluation criteria on the outcome of the Department of Management. Determination of cost targets is based on periodic forecasts and data analysis. First the overall objective of the project needs to be determined, and then whether the project is multi-year needs to be determined. The annual cost targets need to be set for multi-year project, or else the quarter cost needs to be set. The preparation of stage project cost includes project cost management Element refinement and project cost

5 plan calculation and preparation, project cost planning continuous improvement, problems re-feedback adjustment until the final completion of the cost plan (Annex 2 project cost planning process). C. Assessment of the main project cost plan The evaluation on highway main project cost plan is that if the project name is complete, if the price difference is reasonable, as well as risk assessment and 3cm), etc.. The main part of the cost of the project plan summary table shows the difference current main project is the biggest thickness projects thick, profit margins reached between the sealing layer, however, pass the bridge or at the office and the cement concrete pavement, etc. Item price difference is almost zero (Figure 5 Comparison of the project spread). so on. Taking main project of Wuhan highway as an example, the project name includes: road-bed renovation, under the cement stabilized crushed stone sub-base thickness 200mm, buried plate of cement stabilized gravel sub-base, thick 200mm, buried plate of thickness of 150mm, cement stabilized gravel, thick 180mm, thickness 200mm, thickness 250mm, glass fiber grid crack, bridge or out through office, sticky layer, SBS modified asphalt emulsion adhesive layer (for the asphalt surface layer), SBS modified emulsion Asphalt adhesive layer (for cement concrete bridge deck), seal coat, asphalt emulsion seal coat under, Asphalt Concrete (AC-25I), thickness 80mm, surface layer of asphalt concrete mixture (AC-20I), thickness 50mm, thickness of 60mm, thickness 70mm, the top layer of asphalt concrete mixture (AK-13A), thickness 40mm, cement concrete pavement, thickness 260mm, cement concrete buried plate, steel mesh cement concrete pavement, asphalt surface treatment (thick Figure 5 Comparison of the project spread D. Evaluation Index System of the Project Manager department This paper gives the main points and criteria of the evaluation form three different dimensions: designed project cost, the workflow and the cost of the main project. The ultimately established index system includes three first-level indexes and 39 secondary indexes. Three first-level indicators include: cost plans, work processes and the main project. 39 secondary indicators include: direct costs, management fees, temporary facilities, fees, construction auxiliary fees; standard after the budget analysis, determination of

6 periodic cost targets, preparation of project cost; thickness of 80mm, thickness 40mm, thickness 60mm, thickness of 200mm-1 thickness of 200mm-2, thick 200mm-3, thickness 50mm, SBS modified asphalt emulsion adhesive layer (for the asphalt surface layer), under the seal of emulsified asphalt layer thickness 180mm, thickness 70mm, thick 150mm, SBS modified asphalt emulsion adhesive layer (for cement concrete bridge deck), thickness 260mm, thickness 250mm, road-bed renovated, reinforced cement concrete road network, buried plate of cement concrete buried plate, asphalt surface treatment (thick 3cm), buried plate of, sealing layer cement concrete pavement, cement stabilized gravel sub-base, cement stabilized gravel, Asphalt Concrete (AC-25I), the top layer of asphalt concrete mixture (AK-13A), surface layer of asphalt concrete mixture (AC- 20I), glass fiber grid crack, sticky layer of gravel under the cement stabilized base course. 40mm thick 60mm thick 200mm thick 200mm thick 200mm thick 50mm thick SBS modified asphalt emulsion adhesive layer (for the asphalt surface layer) Emulsified Asphalt Seal Coat 180mm thick 70mm thick 150mm thick SBS modified asphalt emulsion adhesive layer (for cement concrete bridge deck) 260mm thick 250mm thick Road-bed renovation Reinforced Cement Concrete Buried plate Pavement Network Cement Concrete buried plate First grade index Cost plan Workflow The main project Secondary index Direct costs Management Fee Management facility fee Construction of ancillary costs Bided budget analysis Determination of periodic cost targets Preparation of project cost plan 80mm thick Asphalt surface treatment (thick Buried plate 3cm) Seal Coat Ming-tong bridge or Office Cement Concrete Pavement Cement stabilized gravel sub-base Cement Stabilized Crushed Stone Asphalt Concrete (AC-25I) Base The top layer of asphalt concrete Surface layer of asphalt concrete mixture (AK-13A) mixture (AC-20I)

7 Glass fiber grid crack Adhesive layer Cement stabilized gravel base course IV Conclusion under This paper summarizes successful experience in highway construction of a large state-owned enterprises in Wuhan City, three different layer dimensions of evaluation on functions and operations department of highway project manager department is given in this paper, including three first-level indicators: cost plans, work processes and the main project, and 39 secondary indexes: direct costs, management fees, temporary facilities, fees, construction auxiliary fees; standard after the budget analysis, determination of periodic cost targets, preparation of project cost; thickness of 80mm, thickness 40mm, thickness 60mm, thickness of 200mm-1, 200mm thick -2, thickness of 200mm-3, thickness 50mm, SBS modified asphalt emulsion adhesive layer (for the asphalt surface layer), under the seal of emulsified asphalt layer thickness 180mm, thickness 70mm, thickness of 150mm, SBS modified asphalt emulsion adhesive layer ( for cement concrete bridge deck), thickness 260mm, thickness 250mm, road-bed renovated, reinforced cement concrete road network, buried plate of cement concrete buried plate, asphalt surface treatment (thick 3cm), buried board office, seal, cement concrete pavement, cement Asphalt Concrete (AC-25I), the top layer of asphalt concrete mixture (AK-13A), surface layer of asphalt concrete mixture (AC-20I), Glass fiber grid crack, sticky layer of gravel under the cement stabilized base course. The assessment indexes suit for construction enterprises in China. The proposing of Evaluation index selection principle relates the assessment on operational and management layer (construction team) of the company to that of local government, which effectively mitigates conflicts between large state-owned construction enterprises in China and the local government. References [1] Chaojun Guo Highway Project Cost Management and Control [J]. Traffic Technology, [2] Chang E C. Fuzzy set applications for freeway incident detection. IEEE Int elligent Vehicles Symposium, 1993: [3] Krause B. Intelligent highway by fuzzy logic: congestion detection and traff ic control on multi-lane roads with variable road signs. Proc. of the 5th IEEE International Conf. on Fuzzy Systems, 1996, Part 3: [4] Patel M I. An intelligent system architecture for urban traffic control appl ications. Proc. of the 8th IEEE Symp. on Parallel and Distributed Processing, 1996:10-17 [5] Xu H. Real - time adaptive on - line traffic incident detection. Proc. of the IEEE International Symp. on Intelligent Control, 1996: [6] Ritchie G. Simulation of freeway incident detection using artificial neural networks. Transpn. Res.-C, 1993, 1(3): [7] Yogoda H N. The dynamic control of automotive traffic at a freeway entrance ramp. Automatica, 1970, 6(2): [8] Berger C R. Diversion control of freeway traffic. IFAC 6th Trien World Congr ess, Boston, 1973, Part III, 4.3: 1-10 [9] Maarserveen. A martingale approach to estimation and control of traffic flow on motorway. Proc. 4th IFAC/IFIP/IFORS Conf. on Control in Transpn Systems, Ger many, 1983: [10] Smulder S A. Application of stochastic control concepts to freeway traffic c ontrol problem. Proc.6th IFAC/IFIP/IFORS Conf. on Control, Computers and Communi cation in Transpn Syst., Paris, 1989: [11] Prigogine I, Herman R. Kinetic theory of vehicular traffic. New York: American Elservier, 1971 stabilized gravel sub-base, cement stabilized gravel,

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