UNIVERSITY OF LAY ADVENTISTS OF KIGALI
(UNILAK)
SCOPE CHANGE MANAGEMENT AS A WAY FOR PROJECT SUCCESS
A case study of Nyarutara Property Developers ltd (NPD Ltd)
2013-2016
Thesis submitted to the coordination of MBA program in partial fulfillment of the requirements for the award of Master’s degree in business administration
Option of project management
By
Aphrodis NTIRENGANYA
REG NO: MBAKG/00226
NOVEMBER 2016
ACCEPTANCE SHEET
This thesis entitled «Scope Change Management as way for Project Success, Case study of Nyarutarama Property Developers ltd , 2013-2015 » written and submitted by Aphrodis NTIRENGANYA in partial fulfillment of requirements for the degree of Master of Business Administration, Option of Project Management is hereby accepted and approved.
Clement BulaBasuayi, PHD
Supe rvisor
______
Date Signed
Dr. Augustine RUTAMU Dr. Zenon MBERA
Examiner Examiner
______
Date Signed Date Signed
Dr. Augustine RUTAMU
Dean of Faculty of Economic Sciences and Management
______
Date Signed
DECLARATION AND COPYRIGHT
I, Aphrodis NTIRENGANYA, hereby declare that this thesis is my own original work to the best of my knowledge, it contains no materials previously published or written by another person nor material which used to a substantial extent has been accepted for the award of any other degree or diploma at the UNILAK or another institutions, except where due acknowledgement is made in the thesis. Any contribution made to the research by others, with whom I have worked at UNILAK or elsewhere is explicitly acknowledged in the thesis.
I also declare that the intellectual content of thesis is the products of my own work except to the extent that assistance from others in the thesis’s design and conceptions or in style, presentation and linguistic expression is acknowledged. No part of this thesis maybe reproduced stored in any retrieval system or transmitted in any form or by any means without prior written permission of author or UNILAK.
Signature: …………………………..
Date……………………………………
ACKNOWLEDGEMENT
Undertaking a Master’s program was life changing for me in many ways and I need to thank the many people who have supported and guided me through this research experience.
First of all, I would like to express my gratitude to my supervisor Clement BulaBasuayi, PhD, without whom I would have not made this endeavor a success. His dedication to excellence and willingness to read through the many drafts, provide constructive criticism and guide me through the various stages of writing this thesis was invaluable. There are many others who have helped me and I am thankful for their input and support, more so to staff members of the Faculty of economics sciences and management of the University of Lay Adventists of Kigali.
Special thank to my lovely Mum Connyhenninger, Lianestaehle, family of GAKWANDI and Clemance, BARAYAVUGA and Marcianne for their encouragement and persevere during my studies. My special thanks go to my classmates with whom we shared valuable academic life, they were a constant source of encouragement through their knowledge exchange throughout our studies and their humorous stories will never be forgotten. Finally, I appreciate the UNILAK academic and technical staff for their paramount role in providing skills to the students.
DEDICATION
This Thesis is dedicated to:
Our almighty God;
My family in Rwanda;
My family in Germany;
Friends and Colleagues.
ABSTRACT
The focus of this study was to assess the scope change management as a way of project success with case study namely Nyarutarama Property Developers (NPD). This company, like other private and public company in Rwanda has undergone and is currently undergoing a series of significant company scope changes management, mainly due to causes/challenges. In order to assess the relationship between scope change and project success in NPD Ltd, Researcher went through these objectives of identifying the level of necessity of scope change at NPD Ltd, to evaluate the level of application of the scope change in NPD Ltd projects, to assess the relationship between scope change and project success in NPD Ltd and to determine and classify causes/challenges associated with changing the project scope in NPD Ltd Projects.
With key findings, thefirst objective showed that at 96, 9% scope change is necessary due to the world of technology which was often bringing changes at the moderate level of 90.6% given by the second objective findings. Through the third objective, findings showed the relationship between scope changes to project success at incremental mean of 1.30 with 95% of confidence interval of the difference from -1.41 to -1.18. The study found out most causes/challenges of scope change for project success at most like new laws and regulations that may be introduced when implementation is ongoing, there are needs from beneficiaries that have to be met or because there is a need to add value to project product quality and technological breakthroughs etc…and the company need to adopt that change for project success.This study showed in four objectives that scope change management is important when needed to project success and researcher suggested that the NPD Ltd should adopt and include Technological breakthroughs in daily basis of scope change and improve the way of negotiations with stakeholders during scope change.
Keywords: scope change, scope change management, project success, NPD ltd, Rwanda,
TABLE OF CONTENTS
ACCEPTANCE SHEET
DECLARATION AND COPYRIGHT
ACKNOWLEDGEMENT
DEDICATION
ABSTRACT
TABLE OF CONTENTS
LIST OF APPENDICES
LIST OF ABBREVIATION AND ACCRONYMS
CHAPTER ONE: GENERAL INTRODUCTION
1.1 Background of the study
1.2. Statement of the problem
1.3. Research questions
1.4. Objectives of the study
1.4.1. General objective
1.4.2. Specific objectives
1.5. Hypotheses of the study
1.6. Justification of the study
1.7. Conceptual framework
1.8. Scope of the study
1.9. Limitations of the study
1.10. Definitions of key concepts
CHAPTER TWO: LITERATURE REVIEW
2.1. Introduction
2.2. Theoretical perspective
2.2.1. Theories on project management
2.2.2. Project planning and implementation
2.2.3. Project requirement
2.2.4. Project scope management
2.2.5. Project scope change management
2.2.6. Factors to project success due to scope management
2.2.7. Project scope change control features
2.2.8. Causes of scope change
2.2.9. Scope Change Process
2.2.10. Determinant of project success
2.2.3. Empirical literature
2.4. Critical review and research gaps
CHAPTER THREE: RESEARCH METHODOLOGY
3.1. Introduction
3.2. Case study profile
3.3. Research design
3.4. Population and sampling technique
3.5. Data collection and Instrument
3.5.1 Data collection
3.5.2 Research instrument
3.6. Statistical Treatment of Data
3.6.1. Editing
3.6.2. Coding
3.6.3. Data analysis procedure
CHAPTER FOUR: PRESENTATION OF FINDINGS, ANALYSIS AND INTERPRETATION
4.1. Introduction
4.2. Profile of respondents and socio-economics
4.2.1 Gender of respondents
4.2.2. Respondents by age group
4.2.3. Respondents level of Education
4.2.4. Respondent’s terms of employment
4.2.5 Respondent experience
4.3 RESULTS ON THE OBJECTIVES
4.3.1. Descriptive analysis of the objectives
4.3.1.3: The assessment of the appreciation to the relationship between scope change management and project success in NPD Ltd
4.3.1.4: To determine and classify causes/challenges associated with changing the project scope in NPD LTD Projects.
4.4. Results per objectives/hypothesis
4.4.1. Identification of the level of necessity of scope change at NPD Ltd
4.4. 2. Identification of the level of applicability of project scope change
4.4.2.1. Level of application of scope change
4.4.3. Assessment of difference in means of project success before and after scope change.
4.4.3.1. Tests of Normality
4.4.3.2. Hypothesis testing
4.4.4. Classification of causes/challenges that may effects the scope change
CHAPTER FIVE: DISCUSSION OF FINDINGS, CONCLUSION AND RECOMENDATIONS
5.1. Introduction
5.2. Discussion of findings
5.2.1. Objective 1: To identify the level of necessity of scope change at NPD Ltd
5.2.2. Objective 2: To identify the level of application of the scope change in NPD Ltd
5.2.3. Objective 3: To analyze the relationship between scope change and project success in NPD Ltd
5.2.4. Objective 4: To find out challenges associated with changing the project scope in NPD Ltd.
5.3. CONCLUSION
5.4. Limitation to the study
5.5. Recommendations
5.6. Scope for further studies
BIBLIOGRAPHY
APPENDICES
LIST OF TABLES
Table 3.1: Cronbach’s Alpha
Table 3.2: Scale of interpretation
Table 3.3: Scale of interpretation with from 1 to 7 scales
Table 3.4: Interpretation of correlation coefficient
Table 4.1: Gender of Respondents…………………………………………………………......
Table 4.2: Respondents Age group
Table 4.3: Respondents level of Education
Table 4.4: Respondent’s terms of employment
Table 4.5: Respondent experience
Table 4.6: Level of necessity of scope change
Table 4.7: Level of application of project scope change management
Table 4.8. The appreciation of project performance and control before and after scope change management
Table 4.9: Causes/challenges that may affect the scope change before and after with the level of importance for each cause.
Table 4.10: Identifying the level of necessity of scope change at NPD Ltd
Table 4.11: Level of application of scope change
Table 4.12: Tests of Normality
Table 4.13: Paired Samples Statistics
Table 4.14: Paired Samples Test
Table 4.16: Causes/challenges that may affect the scope change in this company with the level of importance for each cause before and after scope change
LIST OF FIGURES
Figure 1. Conceptual framework,
Figure 2. Factors to project success due to scope change management,
Figure 3: Determinant of project success
LIST OF APPENDICES
Appendix 1: Research Questions
Appendix 2: Questionnaires
LIST OF ABBREVIATION AND ACCRONYMS
NPD: Nyarutarama Property Developers
SCRB: Scope Change Review Board
CSR: Change System Request
EPSRC: Engineering and Physical Sciences Research Council,
U.K: United Kingdom
USA: United States of America
TQM: Total Quality Management
CSF: Critical Success Factors
SD: Standard Deviation
WBS: Work Breakdown Structure
CPA: Critical Path Analysis
PERT: Program Evaluation Review Techniques
1
CHAPTER ONE: GENERAL INTRODUCTION
There is no doubt that the scope change management remains straightforward way for the project success. Day to day, companies are gaining more competitive knowledge which gives them to adapt different techniques due to updated technology and which leads companies involving in scope change management for their project success to be stay into progress and sustainable to outside competitions.
Change is inevitable during a project, behind that change there are many good reasons why things need to change, there are also few bad reasons but unavoidable Harrington (2006). In this line, it should be questioned that all changes respect the scope change management, the scope change management is inevitable for any project; no project can exist in vacuum. Richman (2006) mentions that the project scope management should be included of scope planning, scope definition, creation of a work break down structure, scope verification, and scope control. However, within the context of Rwanda after the 1994 Rwandan Genocide, are projects being executed followed in the line of scope change management? So far we do know that few studies have been undertaken with regard to the role of scope change management on project success but not in construction area.
Therefore is a need to fill this gap by undertaken this study. The following section of this study presented background , statement of the problem, objectives , research questions, Hypothesis, Justification , Conceptual framework, Scope and Limitations of the study.
1.1 Background of the study
Rwanda country known on nickname,the Land of Thousands Hills for its countryside dotted with mountains, volcanoes and hillocks is in perfect change. In Rwanda like any other countries, project’s scope changes mid-course add costs, resources, time, extended duration and greater risks. Sometimes it is a number of small scope changes that impact the successful completion of a project rather than one large scope change. Suchan (2007) indicates that without change control the project scope becomes a moving target and the project at risk of missing one or more of the project success factors. The ability to manage and control changes, particularly that of project scope which is a key to reach goals and typical performance indicators for a project manager.
Scope change is often inevitable and it should be prepared to deal with it when it happens, several studies on scope change management and project success were been taking place in different countries.
In USA, Boland (2012) study on health sector for scope change management plan used( descriptive analysis on a sample size of 61 respondents from 130 of a population ) find that there were a lack of proper scope change management and timely handling of change system requests (CSRs) and that may introduce risks to the project’s execution and delivery schedule. Change system request scope and change control management approach takes into consideration that in an agile environment, the delineation between progressive elaboration and scope increase, needs to be firmly understood by the sprint teams, including the scrum masters and product owners. Once the baseline requirements are approved, any variations to project scope need to be quickly escalated and addressed via the change control process.
He continued by saying that Scope change and change control management to be successful all Project Stakeholders are responsible for ensuring an understanding of the agreed to project scope, and for documenting and escalating where potential variations exist. As needed, Project Stakeholders will participate in the SCRB (Scope Change Review Board) to assess the level of effort and impacts of a CSR (change system request).
In UK, Weiming Shen (2008) study on construction industry find that Project scope changes (on a sample of 36respondents from 90 populations) find that as adjustments of activities due to the change request are inevitable as they are a fact-of-life at all stages of design and construction. In an EPSRC (Engineering and Physical Sciences Research Council, U.K.) report Sun et al., (2004), it states that “More than a third of major clients are dissatisfied with contractors’ performance in keeping to the quoted price and to time, resolving defects, and delivering a final product of the required quality.” It may be inferred that the clients’ dissatisfaction is likely caused by change orders running through the construction projects. The effort of managing change orders has imposed a huge burden on project scope change management, and it is a nightmare that industry people wished they never have to face.
Classifications of scope changes in general terms apply to changes in construction domain, “Based on time, change could be anticipated or emergent, proactive or reactive, or pre-fixity or post-fixity. Based on need, change could be elective or required, discretionary or nondiscretionary, or preferential or regulatory. Based on effect, change could be beneficial, neutral or disruptive.” However, since the construction industry is project-based, the best classification is to discuss changes in the context of typical stages/phases in a construction project.
In south-Africa, Boikhutso (2013) study on organization system implementation due to scope change, it was find that Scope change management is one of the biggest tasks to deal with when there is a need of changes in which a business stakeholders may be involved in that change, It is a deliberate approach in the bringing major changes for meeting people’s expectations to move the business forward smoothly. When the need for change arisen, organizations and businesses have no option, but to respond or else they will lose their competitiveness in the market. From this research, qualitative research have been used with structured interviews, questionnaire is also used as an add-on to get more views but current research will use both qualitative and quantitative methods referred to construction industry level of a progress in Rwanda. These methods will help to find out the behavior manner and strategies used when changes are requested for and providing at which level is required to change.
Boikhutso (2013) through Clark and Wheelwright, (1992) report that extensive research shows that technology in general, imposes change on many levels in an organization. Burnes(2004) reported that the implementation of information systems brings with it new ways of doing business in organizations. It is clear that information systems will bring about some degree of change in an organization projects scope; and hence, information-system projects should be treated as change projects.
Beck (2013) reported that Project Scope Change management procedures are typically intended to formalize requests for changes during the life of an implementation project including scope, products functionality and products deliverables that may have major effects on the project budget, staffing changes, and schedule adjustments.
The project scope change management process assesses the impact, cost, benefit and risk of proposed changes. Once a change has been requested, the Project Steering Committee will work together to understand the change request and its justification, consider alternative options if possible, and make the decision if the change is required to be submitted to the Sponsors.
Once all deliverable documents have been approved by the Executive Sponsors any major changes must be submitted via this process. A major change is considered to be a change that has a significant impact on the project schedule, budget or has the potential to delay key implementationmilestones. Project Scope Change Management will help to ensure standardized methods, processes and procedures are used for all changes during approval request implementation project, facilitate efficient and prompt handling of all changes, and maintain the proper balance between the need for change and the potential impact of changes on the schedule, resources and budget Beck (2013). Due to Beck findings, this could lead project to success through well scope change management.
In Rwanda, Fabiola (2015) study assessed the project on entrepreneurial sector of AkaziKanoze Company by performing the scope change management as a tool, this study used a purposive sample and it was mainly descriptive approach oriented. The results from this study revealed that changes in project activities provoked the changes in project cost, time and quality of the product/service of the project at 95%. However, sometimes the activities were changed without changing project cost or time and new activities were many, this leaded to the risk of not completing the project on time as well risk of not having enough resources to allocate to those added activities when the project cost is not increased. Despite that the project has to meet its objectives, there were times when implementers have see that meeting the project objectives without making any changes in project activities was impossible.