Sathya Kondapalli and Deepak K Sharma UMD Project Management Symposium May 4-5, 2017 Slide 1 http://pmsymposium.umd.edu/pm2017/ http://pmsymposium.umd.edu/pm2017/ Sathya Sheel Kondapalli Deepak Sharma 2017 Project Management Symposium APPLICATION OF KANO ANALYSIS FOR IDENTIFYING END USERS’ EXPECTATIONS FROM PUBLIC PRIVATE PARTNERSHIPS
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Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 1
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Sathya Sheel Kondapalli
Deepak Sharma
2017 Project Management Symposium
APPLICATION OF KANO ANALYSIS FOR IDENTIFYING END USERS’ EXPECTATIONS FROM PUBLIC PRIVATE PARTNERSHIPS
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 2
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• Introduction to PPPs
• Research Motivation
• What is Kano Analysis
• Application of Kano Analysis to PPPs
• Results and Conclusion
Outline of the Presentation
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 3
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• A Public Private Partnership (PPP) is project delivery method that allows increase participation of private sector in public projects.
What is a PPP?
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 4
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• DB: Design-Build
• DBM: Design-Build-Maintain
• DBO: Design-Build-Operate
• DBOM: Design-Build-Operate-Maintain
• DBFOM: Design-Build-Finance-Operate-Maintain
• BOT: Build-Operate-Transfer
• BOO: Build-Own-Operate
Types of PPPs
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 5
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 6
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• As per World Bank, $69.9 B was invested on transportation PPP projects throughout the world (Kasper and Saha, 2015).
– This is a 53% increase from the past 5-year average and 86% above the past 10 year average.
• PPPs have enabled the public agencies to complete several projects that would not have completed without higher levels of private sector involvement
Importance of PPP
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 7
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• In the U.S., 33 states have passed PPP enabling legislation and few more are planning for it or are already in the process (Papajohn et al., 2011; Cui & Lindly, 2010)
• We need PPPs
– Current US infrastructure assessment resulted in a D+ grade and the roads and highways got a further lower grade of D (ASCE 2017).
Importance of PPP
We need PPPs and can’t afford to see them fail!
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 8
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• In the past some PPP projects failed to attract sufficient end-users – Only partial achievement of goals.
• One of the probable reasons for PPP failures is the difference between public sector and end-users’ expectations from PPP projects.
Motivation for Research
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 9
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• Understanding end-users’ requirement is necessary for a successful PPP project
• Review by Neto et al. (2016) and Tang et al. (2010) indicate relatively less attention is given to understand stakeholders’ concerns.
Motivation for Research
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 10
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• Government agencies have attempted to understand public perception about PPPs (NCHRP Report)
– primary mode of analysis being basic descriptive statistical analysis
Current Practices
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 11
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 41
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• Enhanced customer satisfaction
= (A + O) / (A+O+M+I)
• This is the increase in customer satisfaction if the situation in functional question becomes reality.
Customer Satisfaction and Dissatisfaction
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 42
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• Reduced customer satisfaction
= (O + M) / (A+O+M+I)
• This is the decrease in customer satisfaction if the situation in dysfunctional question becomes reality
Customer Satisfaction and Dissatisfaction
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 43
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Concern Question Type Customer satisfaction
Toll Payment Acceptance
How would you feel if you don’t require paying tolls even if it results in increased traffic?
F 0.42
How would you feel about paying money for faster travel? D -0.78
Social Equality How would you feel if the tolls are reasonably priced so that most of the people can afford it?
F 0.84
How do you feel when toll roads are offering faster travel to only those who can afford it?
D -0.77
Private Sector Collecting Tolls
How would you feel if government agencies are required to collects tolls?
F 0.36
How would you feel if a private agency collects tolls? D -0.83
Who Operates and Maintains
How would you feel if Government agencies must maintain & operate roads?
F 0.10
How would you feel if a private company maintains & operates the roads?
D -0.10
Higher level of private sector Participation
How would you feel if government agencies allow higher involvement of private companies to enable faster completion of projects?
F 0.52
How would you feel if Government agencies must retain majority of responsibilities (financing, operating, maintaining, designing) of a project?
D -0.05
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 44
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Graphical representation
Toll culture
Equality
Public agency collecting tollsO & M
Higher responsibilities
to private sector
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0 0.2 0.4 0.6 0.8 1
En
ha
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d u
se
r sa
tisfa
ctio
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Reduced user satisfaction
End User satisfaction
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 45
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• Easy to use and adopt
• Classification of responses provides useful information
• Ambiguity reduced– Questionable responses can be removed
– Erroneous questions can be identified
– The survey options are more meaningful for respondents
Advantages of Kano Analysis
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 46
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• Can lead to a lengthy questionnaire.
• Preparing a KA questionnaire requires more effort than a traditional questionnaire because several additional restrictions apply in KA method.
Limitations of Kano Analysis
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 47
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• This research puts forward a method that can extract valuable information from surveys.
• The information obtained from KA can help agencies to
– Develop outreach program and
– Modify the PPPs to match with the end-users’ requirements
Conclusion
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 48
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• Berger C. (1993) “Kano Methods for Understanding Customer Defined Quality”, Center for Quality of Management Journal, Vol. 2 (4), Pp 3-28
• Kano N., “Attractive Quality and Must be Quality”, The Journal of Japanese Society for Quality Control. Pp 39-48
• NCHRP (2010) “Effective Public Involvement Using Limited Resources”. Synthesis 407, Report published by Transportation Research Board of the National Academies, Washington DC
• Papajohn, D., Cui Q., and Bayraktar M. E. (2011). Public-Private Partnerships in U.S. Transportation: Research Overview and a Path Forward. Journal of Management in Engineering, Vol. 27(3), pp. 126-135
• Cui Q., Sharma D. K., Farajian M., Perez M, and Lindly J (2010). “Feasibility Study Guideline for Public Private Partnership Projects”. Report No. 930-722R, ALDOT.
• Ke, Y., Wang, S. Q., Chan, A., and Cheung, E. (2009). Research Trend of Public-Private Partnership In Construction Journals. Journal of Construction Engineering and Management, 135(10).
• Kasper H. and Saha D. (2015) “2015 Global PPI Update” – A note by Public-Private Partnership Group of the World Bank, and the Private Participation in Infrastructure Database (PPI Database)
• ASCE (2017) “Infrastructure Report Card - Roads”, American Society for Civil Engineers.• Neto D. C. S., Cruz C. O., Rodrigues F., and Silva P. (2016). Bibliometric Analysis of PPP and PFI
Literature: Overview of 25 Years of Research. Journal of Construction Engineering and Management, Vol. 142(10).
References
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 49
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Corresponding AuthorDeepak Sharma, PhDAssistant ProfessorDepartment of Civil and Environmental EngineeringCalifornia State University, FullertonPhone: 657-278-3450 (O)Email: [email protected], [email protected]