Exploring the Relationship between Rework Projects and Risk Indicators

Abstract

When projects fail to adequately meet requirements, organizations are forced to either abandon the project or to initiate a new project to address the original project requirements. Because the organization already has experience with and exposure to many project details, it is possible that the second attempt to address the original requirements (a rework project) will create different challenges for the project team. The purpose of this study was to examine risk indicators for rework projects and to determine whether or not risk indicators were the same or different for rework projects. A risk indicator is a factor that has predictive power about the likelihood of a risk occurring in the course of a project's life cycle. The projects studied for this research were undertaken by a large engineering design organization. The results show that there are some important differences in the types of risk indicators experienced by project managers and project teams in rework projects. Specifically, the risks associated with project urgency, quality, and technological changes were more common in rework projects. By understanding and attending to these differences in rework project risks, project managers will be better equipped to successfully guide rework projects to completion.

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“…Even though the overall concept of a rework within a project is thoroughly defined in the literature of project management, the terminology of 'rework projects' is not highly common (Yim et al, 2015). Rogge et al (2001) defined rework in a project as the activities which are to be done twice or more or those activities which intend to remove the work done by the previous attempt in the project.…”

“…A rework project could be defined as redoing an engineering project for a second time because the original project has failed to achieve the goals of the engineering project. The class of rework projects is very costly, highly undesirable, and seen as an unnecessary effort of doing a project for the second time (Yim et al, 2015). Rework is a pervasive problem that adversely impacts the performance of construction projects and has become one of the most common concerns of the industry and academia (Hwang et al, 2019).…”

“…The other option is to re-initiate the project with the intent of achieving the objectives, which were not met in the first attempt. Yim et al (2015) have defined these projects as rework projects. The concept of rework has become a common thing in the engineering projects and several authors, but rework projects were not classified as a different class of project until recently by Yim et al (2015).…”

“…Yim et al (2015) have defined these projects as rework projects. The concept of rework has become a common thing in the engineering projects and several authors, but rework projects were not classified as a different class of project until recently by Yim et al (2015). Hence, there is a limited amount of work done on these rework projects, particularly the unique risks to the rework projects.…”

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“…W badaniu przeprowadzonym przez R. Yim [2015] wykazano, iż projekty innowacyjne po raz pierwszy realizowane przez organizację charakteryzują się najczęstszym występowaniem następujących pięciu czynników mających wpływ na wzrost ryzyka: zmiana wymagań przez użytkownika w trakcie realizacji projektu, potrzeba standaryzacji procedur i wynikająca stąd konieczność wprowadzenia zmian w organizacji, interdyscyplinarność projektu i związana z nią potrzeba komunikacji wielu grup projektowych, występowanie dostawcy oraz nieadekwatna dokumentacja zmiany. W dalszej kolejności zidentyfikowane zostały takie kluczowe czynniki sukcesu projektu innowacyjnego jak rozumienie całokształtu wprowadzanej zmiany, zapewnienie i skuteczność komunikacji ważności zmiany przez wyższą kadrę menedżerską, uwzględnienie wpływu projektu na inne grupy interesariuszy niezaangażowanych bezpośrednio w projekt, ewentualna potrzeba certyfikacji produktu oraz koordynacja zaangażowania członków zespołu z ich kierownictwem funkcjonalnym.…”