An investigation of project success factors in the South African petrochemical industry
Master Thesis
2014
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University of Cape Town
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Abstract
This study will investigate project success factors in the South African petrochemical industry. The availability of capital for projects was reduced by the 2008-2009 global economic recession. This resulted in additional strain on project performance, since the potential implications of cost and schedule overruns for clients, project teams and project managers became harsher. For project failure, the implications may be even worse. Possible implications include career damage; unemployment; financial loss; or liquidation of companies. Projects in the South African petrochemical industry are faced with many challenges such as unfavourable legislation; lack of competent and experienced project human resources; low quality of work; low productivity; and remoteness of the region and industry. These challenges pose a risk to project success. When projects are completed successfully, it can hold major advantages for clients as well as for project team members. These potential advantages include corporate growth; improved job security; career advancement; and financial gain. There are certain factors which need to be managed effectively on projects to improve the probability of project success. These are referred to as success factors. The research question for this study is: What are the most critical factors that project managers need to manage effectively in the South African petrochemical industry to improve project success? This question will be answered by first considering theoretical data, as well as empirical data collected from project professionals with relevant experience by means of interviews and a survey. Purposive sampling was used to obtain inputs from 61 project professionals with over 1,000 years combined project experience in this region and industry. The sample includes participants from project engineering consultants, client organisations, as well as project professionals working for owner project management companies. From the empirical data, challenges unique or dominant in the region or the industry were identified. Using qualitative content analysis, challenges were coded, which resulted in 30 challenge categories. The 10 highest priority challenge categories were consolidated to form 5 general challenges. These are an unfavourable environment; low competence and experience levels; poor availability of project resources; low quality of work; and low productivity. These challenges are a hindrance to project success.
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Includes bibliographical references.
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Grobbelaar, G. 2014. An investigation of project success factors in the South African petrochemical industry. University of Cape Town.