Skills development on small micro medium enterprises (SMMEs) that disregard the use of risk management on civil engineering projects in South Africa.
Mathelele, Mpho
Mathelele, Mpho
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Abstract
Organisation such as Small Business Development and economic developed countries have programmes that support SMMEs. South Africa is slowly growing and becoming an essential part aimed at promoting stronger and more inclusive SMMEs that tend to be poorly equipped to deal with problems arising from project risk management. In developing countries, it is difficult for small, medium, and micro enterprises to develop a decisive plan for project risk management and promote to stable growth. Project scheduling and cost estimation are particularly difficult in SMMEs running engineering projects and often lead to notably large cost overruns that can be explained by a wide range of uncertainties and the uniqueness of the project. The literature review assesses previous research on SMMEs conducted on a civil engineering project and the extent to which the information on using Monte Carlo simulation for project plans on risk schedule and cost. The data that were analysed were extracted from other studies, reports, and published articles as well as data drawn from project records and documents. The project assessed the implication of disregarding project risk management and its outcome. A project utilising historical data was methodically analysed for project risk
management from its inception to closeout. The analysis was conducted using Monte Carlo simulation to show how schedule management and cost risk assessment can be improved and, if not, how cost overrun is ascertained. Quantitative research was selected for this study due to its focus on objectivity. The qualitative method was not selected because it is subjective and focuses only on observation phenomena of individual feelings, opinions, or preferences. This research was discovering correlations between independent and dependent variables of project implementation actions that resulted in the quantitative analysis's financial, technical, or human influence on the project. The analytical framework is used to connect the SMME to the conceptual model. The results show that the selected project for analysis using the Monte Carlo simulation could have performed satisfactorily in terms of correlations between the true schedule and cost forecast. The examination of statistical models that can explain the link between cause and effect, as well as other relationships on schedule and cost overruns, constituted the final stage of the research process.
Description
Submitted in partial fulfilment of the requirements for the degree, Master of Engineering in Engineering Management in the Department of Industrial Engineering in the Faculty of Engineering and the Built Environment at the Tshwane University of Technology.
Date
2024-08-01
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Tshwane University of Technology
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Keywords
SMMEs(Small Micro Medium Enterprises), Risk management, Civil engineering projects