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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
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Types of PPPs
Image Source https://www.fhwa.dot.gov/policy/2006cpr/images/43h03.jpg
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
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• Her three is not my three
Current Practices
Image Source: https://www.pinterest.com/jasmineayoub03/smart/
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 12
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• Her three is not my three
Current Practices
Three
DBFOMDBF
Time Saving, Less Pollution, etc., etc., etc.
Freeways free of congestion!
ThreeThree
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 13
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Kano Analysis
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 14
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• The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano.
What is Kano Analysis?
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 15
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Taste of food
Any complimentary dishes ?
Noise levels
Speed of service
Friendliness of staff
Cleanliness
Image Source: https://www.restaurantsupply.com/blog/category/restaurant-operations/
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 16
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Questionnaire
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 17
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Taste of food
Any complimentary dishes ?
Noise levels
Speed of service
Friendliness of staff
Cleanliness
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 18
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End-users’ Perception
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 19
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• The user would be happy if it is available but wouldn't be disappointed if it is unavailable.
• Example
Maria: High speed Wi-Fi in a restaurant
Linda: Ambience
Attractive (A)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 20
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• A direct relation exists between user satisfaction and the availability of factor.
• Example
Maria: Taste of the food in a restaurant
Linda: Range of cuisines offered
Jennifer: Ambience
One dimensional (O)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 21
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• These are the basic requirements and cannot be neglected.
• Example
Male 1: Hygiene restrooms in a restaurant
Male 2: Vegan options on the menu
Must be (M)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 22
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• The availability or absence wouldn't make a difference on customer satisfaction.
• Example
Sathya: Noise levels
Sharma: Cleanliness
In-different (I)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 23
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• Elements that reduce customer satisfaction
• Example
He: poor service
She: taste of food
Reverse (R)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 24
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• Conflicting views by the respondent are categorized questionable and are excluded from the analysis
Questionable (Q)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 25
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• The Questionnaire required to perform kano analysis is different when compared to the currently used methods.
• Each concern must be questioned in two ways - Functional and dysfunctional.
Kano Questionnaire
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 26
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Question
A Question asking what the user feels if the
said factor is available
Dysfunctional Question
A Question asking what the user feels if the
said factor is NOTavailable
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 27
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(Q) How do you feel if we offer high speed Wi-Fi to all our customers free of charge?
� I like it that way� It must be that way� I am neutral� I can live with it that way� I don’t like it that way
Functional question
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 28
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(Q) How do you feel if we do not offer high speed Wi-Fi in our restaurant?
� I like it that way� It must be that way� I am neutral� I can live with it that way� I don’t like it that way
Dysfunctional question
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 29
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Table used for classification
Dysfunctional
Functional I like it It must be Neutral I can live with it I dislike it
I like it Q A A A O
It must be R I I I M
Neutral R I I I M
I can live with it R I I I M
I dislike it R R R I Q
Source: Kano, N et al. (1984), Berger C (1993)
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 30
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Applying Kano Analysis to PPPs
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 31
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Functional question:
(Q) How would you feel if only government agenciescollects toll?
� I like it that way� It must be that way� I am neutral� I can live with it that way� I don’t like it that way
Structure of the Questions
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 32
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Functional question:
(Q) How would you feel if only government agenciescollects toll?
� I like it that way� It must be that way
� I am neutral� I can live with it that way� I don’t like it that way
Structure of the Questions
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 33
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Dysfunctional question:
(Q) How would you feel if a private agency collects toll?
� I like it that way� It must be that way� I am neutral� I can live with it that way� I don’t like it that way
Structure of the Questions
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 34
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Dysfunctional question:
(Q) How would you feel if a private agency collects toll?
� I like it that way� It must be that way� I am neutral� I can live with it that way
� I don’t like it that way
Structure of the Questions
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 35
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Example
I : Indifferent
Dysfunctional
Functional I like it It must be Neutral I can live with it I dislike it
I like it Q A A A O
It must be R I I I M
Neutral R I I I M
I can live with it R I I I M
I dislike it R R R I Q
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 36
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Concern Question Type
Toll Payment
Acceptance
How would you feel if you don’t require paying tolls even if it results in increased traffic?
F
How would you feel about paying money for faster travel? D
Social Equality
How would you feel if the tolls are reasonably priced so that most of the people can afford it?
F
How do you feel when toll roads are offering faster travel to only those who can afford it?
D
Private Sector
Collecting Tolls
How would you feel if government agencies are required to collects tolls? F
How would you feel if a private agency collects tolls? D
Who Operates
and Maintains
How would you feel if Government agencies must maintain & operate roads? F
How would you feel if a private company maintains & operates the roads? D
Higher level of private sector
Participatio
How would you feel if government agencies allow higher involvement of private companies to enable faster completion of projects?
F
How would you feel if Government agencies must retain majority of responsibilities (financing, operating, maintaining, designing) of a project?
D
Other Questions
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 37
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• We used Monte Carlo simulation to simulate responses from 10,000 respondents for our questionnaire having 10 questions.
Sampling
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 38
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Distribution of Simulated Respondents
Question # A B C D E Remarks
1 40% 20% 20% 15% 5%About Toll Culture
2 10% 5% 5% 10% 70%
3 80% 5% 5% 5% 5%About Equality
4 10% 10% 5% 5% 70%
5 35% 29% 12% 20% 4%Public agency Collecting Tolls
6 12% 5% 6% 4% 73%7 10% 30% 30% 25% 5%
Who does O&M8 10% 25% 30% 25% 10%
9 50% 10% 10% 10% 20%Higher Private Sector Involvement
10 10% 50% 15% 5% 20%
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 39
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User responsesQuestion # A B C D E
1 3979 2000 1999 1510 512
2 964 466 503 1058 7009
3 8040 475 460 533 492
4 957 1036 480 535 6992
5 3483 2929 1187 1995 406
6 1131 521 611 407 7330
7 1020 2922 3058 2499 501
8 935 2533 3012 2539 981
9 5071 1021 1447 1974 487
10 991 3019 2983 2525 482
Sathya Kondapalli and Deepak K SharmaUMD Project Management SymposiumMay 4-5, 2017Slide 40
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Classification of responses
Attractive
(A)
One
Dimensional
(O)
Must
Be (M)
Indifference
(I)
Reverse
(R)
Questionable
(Q) Total
Toll culture 801 2,798 3,842 1,181 629 749 10,000Conflict of
equality due to
tolls 1,654 5,603 1,043 315 256 1,129 10,000
Public agency
collecting tolls522 2,581 4,458 961 807 671 10,000
O&M 794 116 816 7,006 1,109 159 10,000
Private
Involvement4,311 253 204 3,916 784 532 10,000
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
nce
d u
se
r sa
tisfa
ctio
n
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: dsharma@fullerton.edu, dksharma77@gmail.com
Thank you for your kind attention!
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