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Content
1. INTRODUCTION 1
2. DESCIPTION OF THE COMPANY 1
2.1. Background Information 1
2.2. Business Strategy 2
2.3. Environmental Factors Affecting the Company 3
3. INDENTIFICATION AND DISCUSSION OF CURRENT MANAGEMENT PRACTICES AND ISSUES: 5
3.1. Management Practices 5
3.2. Management issues 7
4. ANALYSIS AND ACCESSMENT 8
4.1. Positive sides in MTH management approaches: 8
4.2. Negative sides in MTH management approaches 9
5. RECOMMENDATIONS 10
6. REFENRENCES 11
 
 



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Management issues in mth vietnam – bac giang drainage and sanitation project
Content
INDIVIDUAL ASSIGNMENT
Student: Nguyen Thi Phuong Thao
Class: EMBA7C
Bac Giang drainage and sanitation project in - MTHojgaard Vietnam company
1. INTRODUCTION
- Selected company: MTHoigaard Vietnam – Bac Giang Drainage and sanitation Project. MTH is one of the biggest construction company in Scandinavian countries
- Name of the manager interviewed: Søren Rib VaalakldjfCer Carlsen
- Title: Project Manager; South East Asia Manager
- Purpose of the assignment: By analyzing management issues of a real company, this assignment is to Giúp the students and readers:
To get to know about the functional processes of management
To understand the environmental factors that affect the implementation of the project and how to deal with those factors in order to improve the efficiency of studied project.
To apply the lesson learnt from the assignment to real cases
Description of the Company
2. DESCIPTION OF THE COMPANY
2.1. Background Information
MT Højgaard (MTH) is an Denmark building and construction company, which was established in 1918. This company has left its mark on a multitude of building projects in Denmark and abroad.
Bac Giang Drainage and sanitation Project has the building period of 2007-2009 with the investment capital of 22 million USD.
This project is to carry out a wastewater treatment plant and a drainage system in Bac Giang city. The existing drainage system is to be renovated and extended to service seven wards in the city.
Number of Employees in Bac Giang Project: 42 staffs (excluding the workers of Sub-contractors)
2.2. Business Strategy
Vision MTH aims to be Denmark’s leading building and construction company. The company maintains and develops this position by being the best in key areas. This applies to its professional competences and its development of existing and new forms of collaboration – both those that are directly targeted to its clients and those regarding optimization of its building processes.
Mission
MTH creates space for people’s activities and achieve building and construction visions by systematizing and combining knowledge and craftsmanship. The company acts according to its six values: Customer-minded; Value-adding; Innovative; Trustworthy; Good employer and Sound financial base.
Objectives of the Project
Refurbishing and expanding the sewer system; building a new purification treatment plant in the scheduled time with highest quality at provided capital.
Solving the existing flooding problem and the increasing environmental pollution caused by both domestic and industrial wastewater for better health and better opportunities for economic growth
Creating jobs for local engineers and construction workers
Strengthening the diplomatic relationship between Denmark and Vietnam
2.3. Environmental Factors Affecting the Company
Social factors
In the project, a total of 40 km of pipes with dimensions varying from 300 mm to 2000 mm are to be laid within Bac Giang city. Most of the pipes go through areas that people are living, working and doing business. Before laying the pipes, workers must dig and excavate the pavement in front of inhabitants’ houses or shops, which cause difficulties for them to travel or to sell the goods. Some people prevent MTH staff from continuing the project and MTH representative have to explain the huge benefit for the city after the project is finished. When the citizens understand clearly about the purpose, they are willing to create good conditions for the company to carry out the construction. In this case, it is obvious that the management of relationship to the outsider play an important role in the success of the project.
Legal factors
MTH is a foreign contractor and Bac Giang is the very first project that this company carries out in Vietnam. The company has not understood deeply about Vietnamese construction law and the habit of doing business of Vietnamese subcontractors. Moreover, there are also differences between Vietnamese and international law in related issues. Therefore, sometimes, MTH face problems in applying the law to manage the project, which lead to difficulties in inspection and arrange payment among main contractor and subcontractor.
Economics
MTH implement drainage and sanitary project over the period that the international and Vietnamese economy is facing with finance crisis. The effect of this chaos is:
- Firstly, materials price increase remarkably in comparison with the time when the contract was signed and cost estimation was generated. The company has to re-calculate the expenses and make some corrective items in order to prevent the project from the loss.
- Secondly, it is more difficult to mobilize and transfer more capital for the project because parent company in Denmark also has to deal with the shortage of capital to overcome the hard time in crisis.
Due to this fact, MTH Vietnam has to tighten the expenditure and re-allocate some costs as well as to cut down a few unnecessary items.
Political:
By implementing this project sponsored by loan from Danish government, the relationship between Vietnam and Denmark is strengthened. Leaders of Bac Giang People Committee promise to make the most convenient conditions for the company to finish the project on time. They Giúp to persuade citizens to follow the contractor’s instructions and plan.
However, there are quite many parts participate in to the project:
- Vietnamese side includes Project Management Unit (representing Investor), Consultant (responsible for supervising the project) and sub contractors (responsible for carrying out each construction item)
- Danish side: MTH
In some case, this fact may make the procedure slow down. Subcontractors are working under a number of supervisors. Decision making process going through multi-level system will be less effective.
Technical:
The advantage for MTH Vietnam in the project is that it can acquire the advanced technology in wastewater treatment and building water drainage system. Fifty percent of the pipes are High Density Polyethylene (HDPE) and the other fifty percent is concrete pipes, which are very durable and long-lasting. The company also applies really new methods in building the wastewater treatment plant.
In short, there are 5 main environmental factors which have both positive and negative effects on the project. The company should recognize all of those factors and find out the right approaches to deal with problems it faces.
3. INDENTIFICATION AND DISCUSSION OF CURRENT MANAGEMENT PRACTICES AND ISSUES:
3.1. Management Practices
In general, the organizational structure of MTH company is not much different from a normal organization. Leading the project is the Project manager – Mr Søren Rib VaalakldjfCer Carlsen, who is supported by a Deputy manager – Mr Micheal Kolbe. The company is divided into some functional Departments:
+ Sewer Department
+ Pipe-line department
+ Wastewater pumping stations & Wastewater treatment Plants
+ Quality Assurance
+ Admin and Coordinators
Each department has a manager who reports to project manager or deputy project manger.
The management of the company including the 4 issues: planning, organizing, leading and controlling is as followed:
Planning
The contractor makes the plan and submits to Project management Unit of Bac Giang city who are the representatives of the Client or Investor) to get approval. The plan is generated based on analyzing existing resources such as: financial resource, human resource, technical resource… Each item of the project is a part of completed and consistent system. In the plan, the building of all the parts such as pipe-line system, wastewater pumping stations, flooding water pumping stations & waste water treatment plant… has the connection to each other and can be executed at the same time if possible in order to save time and work scientifically.
Organizing
Based on the general plan, a detail project schedule is made in which each item is given to each Department. The schedule is even detailed to every week/month/quarter. The capital is also allocated for each item in this schedule. On executing the project, when the company comes up with some problems, occasionally makes the project to be in “freeze mode” for several days (eg. Difficulties in land clearance, bad weather…), the manager must be very flexible and quick-minded in taking the corrective actions to rush up with project schedule.
Leading
Mr. Søren sets up a number of measurements to access the performance of his staff, most important of which is fulfilling the task (the construction item) not later than the time in schedule at quality requested. Moreover, the company offers rather high salary to staff, not only for Danish e...
 

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