Project Cost Control and Performance of Bugarama Rice Project in Rwanda

Authors

  • Alex Bwankarikari Mount Kenya University, Kigali, Rwanda
  • Eugenia Nkechi Irechukwu Mount Kenya University, Kigali, Rwanda

DOI:

https://doi.org/10.53819/81018102t2066

Abstract

The purpose of this research was to examine the effect of project cost control on the performance of rice project in Rwanda by taking Bugarama Rice Project. The descriptive case study research based on qualitative and quantitative approaches were used in order to get a better insight of the study. The population of the study was 74 and sample of 57 respondents, sampling technique used pick all the 57 respondents as the sample size of the population. The researcher used SPSS software application in order to process the data. Mean standard deviation and percentages were used for data analysis. The relationship between the variables was established by use of Pearson correlations. The results showed that that majority of the respondents agreed that a project develop accurate cost estimates and realistic project budget that leads to project to minimum cost while minority disagree with the statement. For instance, from the ANOVA results showed that p-value is 0.000 which is less than the 0.05, set as standard significance levels. This means that null hypothesis stated that there is no relationship between keeping a track of project costs and project performance in Bugarama Rice Project, was rejected and goes by the alternative hypothesis, which states that the independent variable influences project performance in Bugarama Rice Project. The results also showed that that majority of the respondents agreed that labor cost of the project is a challenge to project cost control hence poor performance and majority of respondents disagree with statement. This implied that there was a challenge for labor cost in the project. The ANOVA results showed a p-value is 0.000, which is less than the 0.05, set as standard significance levels. This signified that reject null hypothesis and accept the alternative hypothesis. Therefore, there was statistical significant relationship between planning the project budget for project and project performance thus planning the project budget in Bugarama Rice Project was done by top management has an influence on project performance. The research results showed that majority of the respondents agreed that project manager ensure compliance with the budget for continually compare the actual expenses incurred with the predicted ones throughout the project’s life cycle and minority of the respondents disagreed with statement. The ANOVA results show p-value is 0.000 which is less than the 0.05, set as standard significance levels with fit level of 444.340. This meant that null hypothesis states that there was no relationship between managing project expenses and project performance in Bugarama Rice Project was rejected and goes by the alternative hypothesis, which stated that the independent variable influences project performance in Bugarama Rice Project. Basing on the results the management should emphasize on cost of the project office results in relation to efficiency of project budget cost in the managing project in order to prevent future challenges. Management should have a provision of project financial reports during of project process that minimizes challenges of the project cost control during project completion.

Keywords: Project Cost Control, Performance of Rice Project, Rwanda

Author Biographies

Alex Bwankarikari, Mount Kenya University, Kigali, Rwanda

School of Business and Economics, Master of Business Administration (MBA), Project Management, Mount Kenya University, Kigali, Rwanda

Eugenia Nkechi Irechukwu, Mount Kenya University, Kigali, Rwanda

Mount Kenya University, Kigali, Rwanda

References

Aaltonen, K. (2011). Project stakeholder analysis as an environmental interpretation process. International Journal of Project Management, 29(2), 165-183. https://doi.org/10.1016/j.ijproman.2010.02.001

Anthony, R.N. and Govindarajan, V. (2014), “Management Control Systems of Project “New York, NY

Allan Ashworth HMI, MSc, (2004): Cost Studies of Buildings Pearson/Prentice Hall, New engineering Proceedings of the 6th International Conference on Predictive Models in Software Engineering

Archibald. D., (2012), Managing high-Technology Programmes and Projects, 2nd Ed, John Wiley and Sons, U.S.A.

Boddy.D and Buchanan. A., (2002), Take the project lead. Prentice-Hall, London.

Brigham.E, and Daves. P., (2011), Intermediate Financial Management in projects, 7th Ed, South-western, U.S.A.

Curwin.J, and Slater. R., (2012), Quantitative Methods for Business and Project Decisions, Thomson learning, U.K.

Chipon, C., (2013), Project Managing risks and Decisions in Major projects, (Chapman& Hall, Londod)

Colin Drury (2014). Management and Cost Accounting. Sixth Edition.

Dew R. & Gee K. (1973). Management Project Control Information.2nd edition MacMillan London.

Darden, T., Riggs, W., Torell, R., and Myer, G. (2010). Cow-Calf Costs and Returns for Elko County, Nevada Northeastern Nevada Production Area, 600 Cow Operation. Extension, Fact Sheet FS-01-19.

Doye, D and Sahs, R. (2015). Using Enterprise Budgets in Farm Financial Planning. Extension. Hinman,

Herbert (2012). Understanding and Using WSU Enterprise Budgets. Washington State University Cooperative Extension

Herath, S. K. and Indrani, M. W. (2014),” Project Budgeting as a Competitive Advantage: Evidence from Sri Lanka” Journal of American Academy of Business.11, Issue 1, pp.79-91.

Frazer, M., (2012), Understanding Financial Statement, Englewood Cliffs, NJ, U.S.A. Hirschey.

Gathithi; E. 2010.A study of budget implementation in public institutions. A case study of the UON. MBA thesis university of Nairobi, school of business.

Harrison, L., (1992), Advanced project Management, 3rd Ed, Aldershot; U.K.

Horngren C. T. (2010). Project Cost Accounting, A Managerial Emphasis. 4thedition, Prentice Hall India, New Delhi

Kakui S. (2011). Relationship between budget use and managerial performance in the hotel sector in Nairobi. MBA thesis, University of Nairobi School of business

Kavoi D. M (2011). Factors that project budget influence on performance, the achievement of budget targets in the University of Nairobi.

Kald, M., Nilson, F. and Birger, R. (2010), “on project strategy and management control: the importance of classifying the strategy of the business”, British journal of management, vol. 11, pp. 197-212.

Lau; Chong M, Christem (2010). Budget Emphasis, Task Difficulty and performance. The effect of diversity within culture. Accounting and Business Research, 31: 37-55.

Lyne, S. R. (2012). “The Role of the Budgeting Medium and Large UK Companies and the Relationship with Budget Pressure and Participation” Accounting and Business Research, 18(71): 195-208

Marian Jureczko, Lech Madeyski, (2014) Advanced computational methods for knowledge, Oxford University Press. Ny, U.S.A.

Marilla D. Svinicki (2010) A Guidebook on Conceptual Frameworks for Research in Engineering Education (University of Texas).

James, P., (2016), Managerial Economics, the Dryden Press, NJ, U.S.A.

Muiruri, M.W (2011).A survey on the roles of Budgeting in promoting corporate governance on Consistency. Development funds allocation in Nairobi.

MelekEker (2017). The impact of budget participation on managerial performance via organizational commitment. PHD Thesis Akdeniz University Faculty of Economics.

Nader. A and Tushman, M., (1997), Competing by Design, Oxford University Press. Ny, U.S.A.

Pilcher, 1994, “Project cost control in construction” London: Collins: Distributed in the United States of America by Sheridan House, 1985Zealand, and visiting Professor, Liverpool John Moores University

Rosenberg, M. B. (2013). Nonviolent communication: A language of life. Encinitas, CA: Puddle Dancer Press.

Stephen. R, and David. D; (2011), Fundamentals of Management, 3rd Ed, Prentice- Hall, NJ,U.S.A.

Gerrit Sarens, Mohammad J. Abdol mohammadi, Rainer Lenz, (2012),"Factors associated with the internal audit function's role in corporate governance", Journal of Applied Accounting Research, Vol. 13 Iss: 2 pp. 191 - 20

Wheelen.T, and Hunger. J., (2010), Strategic Management Business Policy, 7th Ed, Prentice- Hall, NJ. U.S.A.

GR Norman, HG Schmidt - Medical education, (2010), Effectiveness of problem‐based learning curricula: Journal of clinical epidemiology 50 (8), 869-879

Stedry, A.C. and Kay, E. (2011), “The effects of goal difficulty on performance of project”, Behavioural Science, November, pp. 459-70

Wilhelmi, M. and Kleiner, Brian H. (2015), “New developments in project budgeting”, Management Research News, Vol. 18, Issue 3-5; pp.78, 10 pages

Downloads

Published

2022-05-07

How to Cite

Bwankarikari, A., & Irechukwu, E. N. (2022). Project Cost Control and Performance of Bugarama Rice Project in Rwanda. Journal of Entrepreneurship & Project Management, 6(2), 60–81. https://doi.org/10.53819/81018102t2066

Issue

Section

Articles

Most read articles by the same author(s)

1 2 3 > >>