DSpace Institution

DSpace Repository http://dspace.org

Logistics and Supply Chain Mangement Thesis

2020-09

The Influence of Fleet Management

Practices on Construction Performance:
The Case of Awwce

Manale Mekonen Bayable

http://hdl.handle.net/123456789/11137
Downloaded from DSpace Repository, DSpace Institution's institutional repository
 INFLUENCE OF FLEET MANAGEMENT PRACTICE

ON CONSTRUCTION PERFORMANCE: THE

CASE OF AMHARA WATERWORKS

CONSTRUCTION ENTERPRISE

BY

MANALE MEKONEN BAYABLE (BDU 1021429)

ADVISOR

BELAYNEW ASRIE (ASS.PROFESSOR)

A THESIS SUBMITTED TO BAHIR DAR UNIVERSITY COLLEGE OF

BUSINESS AND ECONOMICS DEPARTMENT OF LOGISTICS AND
SUPPLY CHAIN MANAGEMENT IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTERS OF ARTS IN
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
August, 2020

Bahir Dar, Ethiopia

 DECLARATION
I, Manale Mekonen, hereby declare that this study entitled ‶THE INFLUENCE OF FLEET MANAGEMENT
PRACTICES ON CONSTRUCTION PERFORMANCE″: THE CASE OF AMHARA WATER WORKS
CONSTRUCTION ENTERPRISE” is for the partial fulfillment of the requirements for Masters of Arts in
Logistics and Supply chain management in Bahir Dar University. All information in this study has been
obtained and presented by academic rules and ethical conduct. This is my original work and has not been
presented for any academic requirement in this or any other academic institution and I have made it
independently with the close advice and guidance of my advisor.

Declared by: Manale Mekonen Bayable

Signature: _________

Date: July 2020

This thesis has been submitted for examination by my approval as a thesis advisor.

Name: Belaynew Asrie/Ass.Professor/

Signature: __________

Date: August,2020

i
 THE INFLUENCE OF FLEET MANAGEMENT PRACTICES
ON CONSTRUCTION PERFORMANCE:
THE CASE OF AWWCE
BY

MANALE MEKONEN BAYABLE

APPROVAL BY BOARD OF EXAMINERS

Belaynew Asrie (Asst. Prof.) ____________________ ____________________

Advisor Signature Date

Taffere Worku Ayal (Asst.Prof.) _____________________ ------------------------

Internal Examiner Signature Date
Bogale Alemu (Doctor) -------------------------------- ---------------------------------
External Examiner Signature Date

_____________________ ___________________ _________________

Chairman of the Graduate Committee Signature Date

ii
 Acknowledgment
No one is like God, I started with this word because without the wonderful support from our heavenly father not
only the paper but also every step of my life will and be meaningless. I ones again would like to thank and
glorify his name ‶ Jesus is Lord ‶ who is the honor of my academic career. Next, I would like to thank my
advisor Belaynew Asrie (Ass.Professor). I sincerely thank him for everything his politeness, for his continuous
follow-ups, encouragement, professional advice, and constructive comments from the inception to the end of
this study. I would also like to extend my special thanks to my wife Yalemtsehay Shiferaw and to all my family
members, whose love, understanding and encouragement have allowed me to achieve my goal. Finally, but
important, I would also extend my gratitude to Fiker shiferaw and Alemayehu mulugeta for their
encouragement and support, to all AWWCE members especially the Equipment administration and
Maintenance department.

iii
List of acronyms

 AWWCE-Amhara water work construction enterprise

 BDM-breakdown maintenance
 CANBUS- Controller Area Network
 CEO-chief executive officer
 CM-corrective maintenance
 DCEO-Deputy chief executive officer
 EDI- Electronic Data Interchange
 FORS -Fleet Operator Recognition Scheme
 GPS-Global positioning system
 GSM -Global system for mobile communication
 LGV-large goods vehicle
 MPG- Miles per Gallon
 ODO -odometer reading
 OECD- Organization for Economic Co-operation and Development
 OEE- Overall Equipment Efficiency
 PM-preventive maintenance
 RPM- revolutions per minute
 UNHCR- United Nations High Commissioner for Refugees

iv
Contents
CHAPTER ONE .................................................................................................1
PROBLEMS AND ITS APPROACH ................................................................1
1.1. Back Ground of the Study........................................................................................................................ 1
1.2. Statement of the Problem ............................................................................................................................. 2
1.3. Objectives of the Study ................................................................................................................................ 5
1.3.1. General Objective of the study ................................................................................................................. 5
1.3.2. Specific Objective ..................................................................................................................................... 5
1.3.3. Research Hypothesis ................................................................................................................................. 5
1.4. Significance of the study.............................................................................................................................. 6
1.5. Delimitation of the Study ............................................................................................................................. 6
1.6. Definition of Terms...................................................................................................................................... 6
1.7. Organization of the Study ............................................................................................................................ 7
CHAPTER TWO ................................................................................................8
REVIEW OF RELATED LITERATURE ..........................................................8
2.1. Practices of Fleet Management .................................................................................................................... 8
2.1.1. Fleet Equipment Management .................................................................................................................. 8
2.1.2. Vehicle Repair and Maintenance Management ........................................................................................ 9
2.1.2.1 Types of Maintenance ........................................................................................................................... 10
2.1.3. Fuel management .................................................................................................................................... 12
2.1.4. Driver training and management ............................................................................................................ 14
2.1.5. Vehicle fleet tracking and scheduling ..................................................................................................... 15
2.1.6. Vehicle replacement and disposal management ..................................................................................... 16
2.1.7. Construction Equipment and down Time Factors .................................................................................. 17
2.1.8. Construction Equipment and cost-related Factors .................................................................................. 18
2.2. Performance ............................................................................................................................................... 19
2.3. Empirical Review....................................................................................................................................... 20
2.3.1 Fleet management practice worldwide .................................................................................................... 20
2.3.2. Fleet management practice in Africa ...................................................................................................... 20
2.3.3 Fleet management practice in Ethiopia .................................................................................................... 21
2.3.3 Fleet management practice in AWWCE .................................................................................................. 21
2.4 Conceptual Framework ............................................................................................................................... 23
2.5. Gaps in Literature ...................................................................................................................................... 23
CHAPTER THREE ..........................................................................................24
RESEARCH METHODOLOGY .....................................................................24
3.1. Introduction ................................................................................................................................................ 24
3.2. Research paradigm ..................................................................................................................................... 24
3.3. Research approach ..................................................................................................................................... 24
3.4. Research design ......................................................................................................................................... 25
3.5. Population and sampling ............................................................................................................................ 25
3.6. Instrument and Data Collection Techniques .............................................................................................. 27
3.7. Reliability and Validity of Instruments...................................................................................................... 27
3.7.1 Validity of the study................................................................................................................................. 27
3.7.2 Reliability of the study ............................................................................................................................. 27
3.8. Research Ethics .......................................................................................................................................... 28
3.9. Methods of Data Analysis and Interpretation ............................................................................................ 28
CHAPTER FOUR .............................................................................................30
v
 4. DATA ANALYSIS, RESULTS AND DISCUSSION.................................30
4.1. Introduction ................................................................................................................................................ 30
4.2. Response rate ............................................................................................................................................. 30
4.3. Descriptive Analysis .................................................................................................................................. 31
4.3.1. Repair and maintenance management practice ....................................................................................... 32
4.3.2. Fuel management practice ...................................................................................................................... 33
4.3.4 Driver training and management practice ................................................................................................ 35
4.3.5 Vehicle disposal and replacement practice .............................................................................................. 36
4.4. AWWCE Construction Time and Cost performance................................................................................. 37
4.5. Correlation Analysis .................................................................................................................................. 38
4.6. Regression analysis .................................................................................................................................... 40
4.6.1. Model Summary...................................................................................................................................... 44
4.6.2. ANOVA Model Fit ................................................................................................................................. 44
4.6.4 Hypothesis testing .................................................................................................................................... 47
4.6.4.1 The influence of RM management practice on CP of AWWCE .......................................................... 47
4.6.4.2 The influence of FM practice on construction performance ................................................................. 47
4.6.4.3 The influence of VT management on construction performance ......................................................... 48
4.6.4.4 The influence of DM on construction performance .............................................................................. 48
4.6.4.5 The influence of vehicle VD management on Construction performance ........................................... 49
4.7. Discussion .................................................................................................................................................. 49
CHAPTER FIVE ..............................................................................................52
5. CONCLUSIONS AND RECOMMENDATIONS .......................................52
5.1. Conclusions ................................................................................................................................................ 52
5.2. Recommendations ...................................................................................................................................... 53
5.3. Limitation and Suggestion for Future Researchers .................................................................................... 54
REFERENCES..................................................................................................55
Appendix A: ......................................................................................................58
Questionnaire ....................................................................................................58
Appendix B .......................................................................................................64

vi
 List of Figures

Figure 1.Downtime and its consequences ............................................................................................................................. 18

Figure2.Conceptual Framework ............................................................................................................................................ 23
Figure 3: Construction performance ...................................................................................................................................... 37
Figure 4: Histogram............................................................................................................................................................... 42
Figur 5. P-P Plot .................................................................................................................................................................... 43

vii
 List of Tables Page

Table 1: Sample size from each department.......................................................................................................................... 26

Table 2: reliability test........................................................................................................................................................... 28
Table 3: Demographic Profile of the Respondents................................................................................................................ 30
Table 4: Vehicles repair and maintaining practice ................................................................................................................ 32
Table 5: Fuel management practice....................................................................................................................................... 33
Table 6: vehicle tracking practice.......................................................................................................................................... 34
Table 7: driver training and management practice ................................................................................................................ 35
Table 8: Vehicle disposal and replacement practice ............................................................................................................. 36
Table 9: construction Time and Cost performance ............................................................................................................... 37
Table 10: Correlation coefficients between dependent and independent variables ............................................................... 39
Table 11: Multi collinearity test ............................................................................................................................................ 41
Table 12: Regression analysis model summary .................................................................................................................... 44
Table 13: Anova test ............................................................................................................................................................. 45
Table 14: coefficients ............................................................................................................................................................ 45

viii
 Abstract
Fleet management embraces all activities required to sustain and function equipment all over its life since the
starting phase of equipment acquirement to the last phases of asset disposal. Such activities comprise
maintenance and repair, inventory control, training, and safety issues. Managing a fleet can be a challenging
job unless special tools to help control performance. These performance procedures are made possible by the
improvement and implementation of computer-aided fleet management systems. Performance techniques give
business devices to screen, control, and improve each day′s task and work concerning strategic goals. The main
purpose of this study was to investigate the influence of fleet management practice on construction performance
(Time and Cost) in the case of Amhara Waterworks Construction Enterprise. The study employed a cross-
sectional explanatory and descriptive type of research design and mainly quantitative data analysis techniques.
Descriptive statistics such as mean, percentage, and frequency tables were used to describe the data. From the
total targeted population, 137 samples purposefully drawn by using Purposive quota sampling techniques.
Inferential statistics multiple regressions were employed to answers the basic question and test the hypothesis
respectively. Furthermore, the data were encoded, processed, and analyzed using SPSS.V20.Moreover, the
results of the study suggest that the construction performance of AWWCE is Low. The study also found a
positive correlation among the five variables (repair and maintenance management, fuel management, vehicle
tracking management , drivers training and management, and vehicle disposal and replacement management)
of Fleet management practices. Regarding the correlation, it is possible to conclude that there is a strong
(Repair and maintenance, Driver training and Management) and moderate (Fuel management, Vehicle tracking
and Vehicle disposal and replacement management) positive and significant relationship between the five
variables with construction performance. The result of the study also confirmed that, among five independent
variables two of the variables Repair and maintenance and Driver training and management practices are
statistically significant and positively influence the construction performance of the Enterprise. Hence, in order
to improve the construction performance of Amhara Water Works Construction Enterprise, the repair, and
maintenance garage should complete the service and maintenance of vehicles and equipment on time, avoid
maintenance rework with a quality inspection and check up to avoid frequent technical failure after service and
maintenance. Likewise the organization should implement Driver/operators behavior and communication
management system for easy coordination and integration of job assignments, development and learning program
in the organization in succeeding the aim of driver training and management system. In addition to this, in order
to avoid aged and inefficient fleets, the enterprise should establish and implement short and long term strategy
to vehicle and equipment replacement policy and practice.
Keyword:-Fleet management, Repair and maintenance management, Fuel management, Vehicle tracking
management, Driver training and management, Vehicle disposal and replacement management.

ix
 CHAPTER ONE
PROBLEMS AND ITS APPROACH

1.1. Back Ground of the Study

Transport is a basic element for continuous growth. The main part that transportation plays in the
life of each individual, as a public and a country never be overlooked. The request for
merchandise and well-organized transportation means has stayed vital throughout the years. In
reality, it has grown into un debatable to state that deprived of transportation and the effective
use of its helpful organization and ability, the present overall level of progress can be seen as
very uncertain (Badejo, 2013). The aim of transportation in enterprise′s business strategy figures
clearly in the firm′s attention of the target customer’s requirements. If a company′s business
strategy aims a customer who expects a very high level of sensitivity, and that customer is ready
to pay for this responsiveness, then a firm can use transportation as one driver for making the
supply chain more reactive. The opposite holds as well. If a company’s business strategy aims
customers whose main choice is a price, the company can use transportation to a lessor the cost
of the product at the cost of responsiveness. Since a company may use both inventory and
transportation to increase reaction or efficiency, the best decision for the business often means
finding the right equilibrium between the two (Meindl, 2007).
The accomplishment of the companies in the market is progressively indicated by high output
and competence of used the transport assets, Excellence of service, low effective costs, and the
ability to continuously and quickly adapt to changing environments. Organizations that advance
efficiency come to this in dissimilar ways, occasionally using very different achievements. This
is because of the unpredictable and difficulty of the current logistics market (Stajniak, 2016).
Administration of transportation processes consists of all kinds and ways, including tracing and
handling every aspect of vehicle repairs, fuel estimation, routing and mapping, warehousing,
communications, EDI applications, cargo management, transporter selection, and supervision
and even accounting. The expenses and encounters for those who run transport operations remain
to rise. The skill to operate a transport operation competently and successfully can no longer be
left carelessly (Asuncion, 2014).

1
Fleet management embraces a variety of roles such as truck maintenance, automobile tracking,
operator, and fuel management. Appropriate fleet management permits enterprises that trust on
huge fleets to shape and harmonize their fleets to increase productivity, and also to decrease their
transportation expenditures (UNHCR, 2018). But, a study carried out in the University of
Education Winneba, Ghana, revealed that; the transport Unit of the University is confronted by
recurrent car breakdowns, accidents as well as poor vehicle planning. It was, therefore, suggested
that the University should oblige all members to act in line with the fleet management rules of
the University and punishments be attached to members who go contrary to the rules (Ampiah,
2018).
The main reason for this study is, Amhara Water Works Construction Enterprise has more than
1000 fleets comprising light vehicles, different types of trucks, construction machinery, and
equipment for the use of construction projects operation (AWWCE, 2017).And these huge
number of fleets need special attention/management, in a way to support the progress of
construction process in order to complete projects successfully. For instance, the 2018 year of
main office report showed that 43,310 and 38,442 hours down and idle time respectively for light
vehicles and machinery due to maintenance downtime, mismanagement of equipment
administration, and construction departments. However, even if there were idle machinery in
projects, on the contrary, the construction department suffers in need of machinery. So, the
department rented more than 300 additional different types of construction equipment for its
operation and it incurred an extra 36,344,332.80 Birr (AWWCE, 2018).
Since, the Enterprise carried out its operation using these fleets and is a profit-oriented
governmental organization, to carry out construction operations efficiently, to achieve project
performance successfully, with lower cost and create customer satisfaction; it needs technology-
aided, well organized and established fleet management practice. The intent of this research lays
on these themes.

1.2. Statement of the Problem

Fleet management embraces all activities required to sustain and function equipment all over its
life since the starting phase of equipment acquirement to the last phases of asset disposal. Such
activities comprise maintenance and repair, inventory control, training, and safety issues.
Managing a fleet can be a challenging job unless special tools to help control performance.

2
These performance procedures are made possible by the improvement and implementation of
computer-aided fleet management systems. Performance techniques give business devices to
screen, control, and improve each day′s task and work concerning strategic goals. Furthermore,
performance measures provide a foundation for in-house investigation and contrast among fleets
by tracing and observing resources (inputs) and job (outputs) and measuring the degree of
productivity and success of the operation. The productivity measures are applied to relate inputs
(costs) with outputs, where success indicates the degree to which organizational goals are being
met. With measures in place, benchmarking can then be used to compare performance against
leading fleet organizations (Storhaug, 2003).

Moreover, another study concerning about factors which affect fleet management practice
showed that; Based on an initial assessment carried with the current UN certain organization in
Ethiopia, the following problems seem like unqualified manpower, misuse of resources and
operator addiction, biased driver employment and selection; inadequate vehicle maintenance and
repair plan, absence of consistent preventive and daily maintenance; incapability to inspect
vehicles & unable to go with recent technology like GPS and poor management and scheduling
of vehicle task (Abebe, 2018). Appropriately managed and repaired vehicle capable of 20-30 %
or additional cost savings on administration Costs alone. Enhanced efficiency of the users can
result in even more savings. Better acquisition, Management, and disposal of vehicles could save
12-17 percent (between US$120 million and $170 million a year) of an estimated $1 billion
annual spend (Gitahi et.al 2014). However, the above studies mainly focus on influence and
assessment of fleet management practice on service delivery of some selected agencies, which
most of the fleets are light land cruiser field vehicles mostly used for transporting aid staff only.
But in this research, why preferred is, Amhara water work construction enterprise performs
construction operations like irrigation, water supply, road, and building by deploying a variety of
fleets, such as light and heavy-duty trucks, light, and heavy construction equipment and
machinery. Since the Enterprise builds medium and large scale water projects, it uses huge and
variety of fleets in performing project construction operations in different sizes and difficult
conditions. Even though the enterprise had more than 1000 fleets and has fleet administration
and maintenance departments, due to the in-efficiency of construction equipment, frequent break
down of machinery, and mismanagement of fleets its performance is not as required. For
instance, AWWCE west Amhara regional office construction operation department 2017 budget

3
year annual impact analysis report shows that 316,369,571.49 birr loss due external (client,
consultant) and internal factors (procurement department, electro-mechanical department,
equipment or fleet administration, and maintenance department). And out of this figure around
25% (79,000,000 birrs) is share of fleet management and maintenance, which arises from
inefficient capacity and frequent machinery break down. In addition to this, the same year annual
report of equipment management process revealed that 3,263.4 liters of fuel over-usage due to
light vehicles, heavy trucks, and machinery deterioration and fuel mismanagement (AWWCE,
2017). These witnesses that even though the enterprise has enormous and varieties of fleets, it
has no fleet replacement and disposal management policy and practice. Because of this, most are
old and inefficient. The fact behind this is the enterprise′s fleet management system is not up to
date (technology-assisted). Of course, on a pilot project base, the enterprise has planned and
implemented modern technology to monitor a fleet management system and installed GPS on 69
trucks. So, the enterprise should apply this technology in all vehicles and equipment to manage
and access real-time information. In 2018 year of AWWCE main office report disclosed that,
43,310 and 38,442 hours registered down and idle time respectively for light vehicles and
machinery. The reason why is because of the maintenance downtime, mismanagement of
equipment administration, and construction departments. However, even if there were idle
machinery in projects, on the other hand, the construction department suffers in need of
machinery. So, the department rented more than 300 additional different types of construction
equipment for its immediate operation and it incurred extra cost 36,344,332.80 million Birr. But
to carry out construction operations efficiently, perform projects successfully and complete in a
timely fashion well established, organized, and technology-assisted fleet management is needed,
and the result brings financial performance (profit) and customer satisfaction. Hence, the
consequence of poor fleet management practice influences on the performance of projects. This
is why the motive behind to study “the influence of fleet management practice on construction
performance.”

4
1.3. Objectives of the Study
1.3.1. General Objective of the study
 The general objective of the study is to investigate the influence of fleet management
practice on construction performance, the case of Amhara water work construction
enterprise.

1.3.2. Specific Objective

 To scrutinize the influence of repair and maintenance management on construction
performance of AWWCE.
 To see the influence of fuel management on construction performance of AWWCE
 To examine the influence of driver training and management on construction
performance at AWWCE
 To investigate the influence of vehicle tracking management on construction performance
at AWWCE.
 To observe how vehicle disposal and replacement management influences AWWCE
construction performance

1.3.3. Research Hypothesis

HO: Fleet management Practices has no significant influence on construction performance

Ho1: Vehicles repair and maintenance management has no significant influence on

Construction performance

Ho2: Fuel management has no significant influence on construction performance

Ho3: Vehicles tracking management has no significant influence on construction performance

Ho4: Driver training and management has no significant influence on construction performance

Ho5: Vehicle disposal and replacement management has no significant influences on

Construction performance

5
1.4. Significance of the study
Construction performance of the Enterprise (AWWCE) is affected by several factors; fleet
management practice is among one of them. Since the enterprise project activity is carried out
using these varieties of vehicles and construction equipment, handling these fleets in a way to
boost the construction operation is indisputable. Besides, there are few studies in the area; it
gives a comprehensive starting point for further research on construction Fleet management
practice. Furthermore, Organizations get ideas to improve existing practices and fill gaps for
their respective company. Public organizations, like AWWCE, get insight into the overall fleet
management and maintenance practice, and able to measure its effectiveness.

1.5. Delimitation of the Study

Since the enterprises organizational structure is more of centralized, and its activities are
managed and controlled at the head office Bahir Dar. This research is delimited to main office
only. Hence, regional offices and projects are not considered in this study. In addition, in order to
get valuable information on the influence of fleet management practices on construction
performance the scope of the study is delimited on 3 departments (Equipment administration and
maintenance Dpt., Construction operation and contract administration Dpt. and purchasing,
finance and property administration Dpt.).

1.6. Definition of Terms

Fleet management:- The proper handling and close supervision of all varieties of fleets such as
light vehicles, trucks, light and heavy machinery, and plants that are suitable for transporting
construction materials and equipment engaged in the construction operation to accomplish
projects. It includes daily check-ups and periodic services depending on working hours and
kilometers mileage to upkeep fleets and gets better efficiency.

Repair and maintenance management: part of fleet management activity which incorporates
planned and unplanned maintenance actions, including daily inspection, periodic inspections,
servicing, adjusting, and overhauling. Repair and maintenance management is also responsible
for preparing the necessary inspection items/parts depending on manufacturer manual to upkeep
the vehicles and equipment in good condition and retain its performance.

6
Driver/operator training and management: the necessary education/lesson given including
conceptual and practical skills, to refresh and upgrade the drivers/operator ability in properly
handling their vehicle/trucks/machine, for smooth operating of equipment/trucks in variety road
/working conditions. It also includes motivational schemes.
Fuel Management: fuel management encompasses accurately collecting data on how a fleet
uses fuel and then using this information to better control consumption, reduce cost, and
eliminate theft and waste.
Fleet tracking/telematics: is a multidisciplinary area of study that embraces communications,
vehicle technologies, road transport and care, electrical engineering (sensors, dashboard, remote,
communications, etc.), and computer science. Simply, Telematics is a mechanism /tool used for
tracking vehicles and assets (UNHCR, 2016 et.al).
Vehicle disposal management: the process /policy followed by organizations to dispose of
/replace vehicles, equipment when it reaches specified service kilometer/ hour/life or when it’s
operating cost is greater than its benefits. Disposal of fleets can be also implemented when
vehicle performance degrades and are not capable of performing its intended job.
Civil/Water construction Performance: The accomplishment of given water supply, irrigation,
and road building construction projects against the contractual agreement (cost, time, and
quality) standards.

1.7. Organization of the Study

The research is organized under five chapters. Chapter one contains the background of the
study, statement of the problem, research question, the objective of the study, the significance of
the study, delimitation, and definition of terms. Chapter two describes a literature review part of
the research. It includes both theories as well as empirical evidence related to the study topic.
Chapter three describes the research methodology part of the research, It describes the type and
design of the research, concepts brought from previous studies, detail description of
participants/sample/ of the study, data sources, data collection tools and procedures, methods of
data analysis. Chapter four presents data analysis, results and their discussions. The findings of
the study summarized and interpreted as well as discussion with the use of related literature
review. Finally, Chapter five presents a summary of the finding, conclusion, and
recommendation part.

7
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. Practices of Fleet Management

2.1.1. Fleet Equipment Management

Most enterprises don't logically move toward fleet management, the reason is the objectives of
fleet management practices are not known. The objectives of any fleet management are to suit
resources that are Suitable, Available, Reliable, Safe, Economical, and Sustainable. Various
partners may see the significance of these objectives uniquely in contrast to each other. Various
firms don't move toward fleet management in logical procedure; because there is inadequate
energy about the difficulty of fleet manager’s activities. Fleet managers are confused, about the
reality that allocating with fleet management includes the preparation of two particulars, yet
related, sorts of activities, asset management, and Enterprise activities. Playing out these
activities needs various kinds of information and talents and various people who are gifted in one
area are not gifted in the other. Responsibility concerning playing out these workouts, for the
most part, is separated, with various representatives as well as/ordered units answerable for ″ bits
of the riddle ‶. Several risk movements are organized and focused to deal with an entire
responsibility; not only a fleet, attempt inclusive objectives and linked management methods and
approaches are not equivalent to requests of practical fleet management (Yankovich, 2017).
Fleet management comprehends a series of roles such as vehicle repairs, vehicle tracking,
driver, and fuel management. Appropriate fleet management permits enterprises that depend on
enormous fleets to bring together and harmonize their construction equipment, trucks, and light
vehicles to increase performance, and also to reduce their operational costs (UNHCR, 2018).
Managing a Fleet can be well-defined by three main parts: Equipment task and optimization,
Construction operation supervision, and Location and material observing. Equipment task and
optimization is the main purpose several construction firms prefer to undertake fleet management
structures in the primary place. By allowing the preparation and allocation of all kinds of
equipment from numerous constructors as well as shift change management from the main office

8
location. The second key element, Construction operation supervision, is the capacity to review
data on machine cycle time, payload, loading performance, and other key operational parameters.
Fleet management delivers visibility in the actual period to this type of data which can be traced
by a single machine or operator, clusters of machinery, particular sites, or an entire fleet enabling
workers to make suitable changes to increase loading efficiency and increase payload
probability. Location and material observing is the third key component. At its most basic level,
fleet management is about monitoring equipment site for an entire fleet but beyond that, it also
helps to confirm that machinery is in the correct location and that the volume and kind of
material they are moving are right (Dandwate, 2015 ).

2.1.2. Vehicle Repair and Maintenance Management

The market needs in global fleet business; regarding transportation, logistics, and heavy-duty
construction, are continuously demanding high-performance levels from production and
equipment maintenance. Trucks, buses, and large-sized machinery have grown in power
specifications, higher pressure, and lower tolerance conditions, requiring all parts to work in
nearly perfect synchrony. However, the continuous wear of moving components can lead to
severe failures and loss of parts, causing not only productivity loss but also accidents (Bronte,
2016). Appropriately protected and maintained machines are less likely to suffer premature
component failure or damage, and give operators the confidence and assurance they need to
carry out their work (Caterpillar, 1998).
Maintenance can be explained as all actions needed to repair equipment to, or retain it in a
condition in which it can accomplish its intended jobs. This meaning closely makes clear that
two categories of maintenance activities can be differentiated. Maintenance can be accomplished
when a failure or break and is then called corrective or reactive maintenance. Another kind of
maintenance is called preventive maintenance and is made when equipment is still operating. It
wishes to avoid or extend failures. For the reason that likely consequences of failures contain
safety issues, machine breakdown, quality concerns, unpredicted machine absence, lengthy
repair periods, and unintentional maintenance activities, it is often chosen to execute
maintenance actions proactively. Though, because carrying out preventive maintenance too
frequently is also unfavorable and expensive; equilibrium among the preventive maintenance
occurrence and the risk of breakdowns has to be established (de Jonge, 2017). One approach to
evaluating the maintenance views in your institute is to study the maintenance works that have

9
happened over the previous two to three years. Care should be taken to the guides that determine
management beliefs. One of the best keys to the management approach and the proficiency of the
maintenance role is the number of construction disruptions affected by repairs-linked difficulties.
If construction interruptions indicate more than 30% of total construction hours, responsive or
failure response is the leading management approach. To be competent in this day’s market,
breaks initiated by repair-associated damages should denote less than 1% of the total
construction hours (Mobley, 2004). In planning the maintenance structure there are significant
issues that should be taken into account. The elements comprise the capability of maintenance,
centralism vs delegation, and internal maintenance vs subcontracting. Lots of criteria can be
applied to plan the maintenance structure. The standards comprise clear roles and duties, the
actual scope of control, enabling good observation and effective writing, and lowering of costs.
Maintenance supervisors must ensure the experiences to arrange a division of labor for
maintenance responsibilities to be executed and then synchronize outcomes to attain a corporate
goal. Resolving efficiency difficulties and exploiting chances might be achieved through the
choice of the correct persons, with the proper skills, reinforced by constant coaching and good
motivation systems, to attain business achievement in terms of performance success and
competence (Ait-Kadi, 2009).

2.1.2.1 Types of Maintenance

As written by Operations and Maintenance (O&M) Best Practices Guide as follows: there are 4
types of maintenance these are Reactive or break down maintenance, Preventive Maintenance,
Predictive Maintenance, and Reliability centered maintenance.
Reactive/break down maintenance is fundamentally the "run it till it breaks" upkeep mode. No
changes or events are made to keep up the equipment as the planner initially expected to
guarantee assembly life is come to. Focuses as later as the winter of 2000 demonstrates this is as
yet the devastating method of maintenance in the United States. The referenced examination
separates the normal upkeep program as pursues: if it is >55% Reactive, on the off chance that it
is 31% Preventive if it is 12% Predictive and on the off chance that it is 2% other. Note that over
55% of upkeep assets and exercises of a normal office are as yet reactive. Points of interest of
reactive maintenance are Low cost and less staff requesting however the drawbacks receptive
support is expanded expense because of unplanned personal time of equipment, expanded work
cost particularly if additional time is required, the cost associated with fix or substitution of

10
equipment, conceivable optional equipment or procedure harm from equipment failure and
wasteful utilization of staff assets.
Preventive Maintenance actions executed on a period or machine-run-based plan that notice,
prevent, or lessen worn-out of parts or system to satisfy or prolong its valuable life by
monitoring tear and wear to a tolerable phase. Advantages of preventive maintenance are
economical in several investment rigorous practices, adaptability permits for the modification of
repairs suitability, improved system, horsepower reserved, lessened equipment or process failure,
it saves cost about 12% to 18% than reactive maintenance program. And the disadvantage is
catastrophic failures still probable to happen, manpower extensive, contains efficiency of extra
maintenance and exposed for related damage to components due to unnecessary repairs.
Predictive Maintenance is inspections that identify the start of a degradation device, thereby
permitting unplanned stressors to be removed or controlled before to any major wear in the part
physical state. Effects show existing and upcoming useful abilities. Essentially, predictive
maintenance varies from preventive maintenance by founding repairs need on the real state of the
equipment instead of on some fixed plan. Advantages are better component operating
life/accessibility, permits for preventive remedial activities, reduction in equipment or process
interruption, lessening in expenses for components and effort, improved goods quality, enhanced
employee and ecological care, enhanced employee morale, horsepower reserves, estimated 8% to
12% cost reserves over predictive maintenance program. And the Disadvantages are as follows:
amplified stock in pinpointing tools, bigger investment staff preparing and promptly observed by
the executives.
Reliability Centered Maintenance (RCM) magazine gives the accompanying meaning of
RCM: "a procedure used to decide the support prerequisites of any physical resource in its
working setting." the RCM approach manages some key issues not managed by other upkeep
programs. It perceives that all equipment in the system isn't of equivalent significance to either
the procedure or facility wellbeing. It perceives that equipment plan and activity contrasts and
that diverse equipment will have a higher likelihood to experience failures from various
degradation instruments than others. Points of interest are is the most proficient upkeep program,
lower costs by disposing of superfluous support or upgrades, Minimize recurrence of redesigns,
the diminished likelihood of unexpected equipment failure, ready to concentrate support
exercises on basic segments, expanded part dependability and joins underlying driver

11
examination. What's more, the weaknesses are can have huge startup costs, preparing, tools, and
so forth and Savings potential not promptly observed by the executives (Sullivan, 2002).

2.1.3. Fuel management

Fuel accounts for 20-30 percent to a vehicle’s entire life expenditures. This is not a permanent
overhead that has to be acknowledged, it is a manageable cost that fluctuates concerning vehicle
category, driving style, truck maintenance, and distance (www.fors-online.org.uk). An effective
fuel managing method can save about 10 percent of fuel budgets. To ensure any confidence in
monitoring fuel expenses, the three elements of fuel efficiency must be caught on a fixed basis –
covered kilometer/miles, amount of fuel used, and the charge of that fuel. Through this
information, it is possible to compare the effectiveness of your vehicles with that of others
(Transport for London, 2006). Fuel usage in heavy construction operations is one of the critical
problems in considering the cost. Construction trucks and machinery overall has more fuel usage
because of its huge mass and its full loads of construction raw materials. Additionally, the
driving situation on construction sites frequently has uneven geography settings and the driving
routes regularly face recurrent steep gradients, which lead to high fuel usage and at the same
time the trucks, have to travel at low speed. Machinery manufacturer effort continually on
upgrading the fuel efficiency of the construction equipment parallel from the vehicle design
point of view and expectation of the road condition, subsequently a decline of a little portion
points in fuel usage can affect considerable cost savings (FU, 2017).
Controlling fuel costs – one of the main operational costs for several trucks and equipment is a
discouraging duty. It includes numerous aspects and circumstances and needs rearranging of fuel
usage reports, lots of receipts, and pages of the dispatch note. Inefficient fuel administration is
expensive; adversely affect a fleet’s bottom line. Principally, fuel administration involves
precisely gathering information on how a fleet consumes fuel and then using this evidence better
to review consumption, decrease cost, and reject theft and waste. There are several approaches
and classifications for achieving. The widely used method comprises manual information
gathering and worksheets. Such methods trust on the dependability of operators recording their
daily kilometer/hour record and fuel acquisitions, as well as the precision of the information
entered being and the commitment of the supervisor to make sense of all the evidence and
conclude how to practice it, (says Jack Lee, president and CEO of 4Refuel Canada, a company
specializing in total fuel management solutions). Such a guidebook and incomplete systems are

12
vulnerable to fake receipts, an unnoticed facsimile, incorrect registers, and data entry mistakes,
he describes. Besides, it doesn’t support the supervisor to create any value. Fuel managing
methods, on the other hand, systematize the gathering of fuel records and quantity the many
actions associated with refilling, doing away with a human mistake, and assisting the supervisor
realize the facts (Kolman, 2010). Besides these, FORS Fuel managing document describes in its
pamphlet concerning fuel storing, controlling and computing fuel usage as follows:-
Storage -If you have the capacity to stock fuel at your reservoir, purchasing fuel in large
amounts can save your working capital. There are different ways that store man should follow
earlier reserving fuel. These consist of: tank Storing place, type of depot, the volume of fuel to be
stocked, which of two the fuel will be deposited over ground or below ground and hazard to the
environment.
Connecting to the vehicle CAN Bus/ GPS technology- all recent automobiles practice a CAN
Bus to transfer data among automated vehicle systems. This message web permits various series
of data comprising odometer reading (ODO), fuel usage (MPG), revolutions per minute (RPM),
engine temperature, engine load/torque, fuel levels, and throttle position to be checked. And it
allows telematics to link straight into CAN Bus system to permit this information to be stored
and consequently analyzed. However, when telematics methods are not compatible with the
CAN bus, it uses GPS data instead to monitor the vehicle. This kind of arrangement can store an
in-depth data on engine condition and faults, truck speed, and operator activities such as rough
handling of machines. Hence, to make the system effective operator feedback/opinion is very
essential.
Driver/ operator feedback- applying the operator's comment relative to truck/equipment
telematics is very significant. Deprived of this, the operator is not aware of their efficiency and is
consequently doubtful to adjust their actions to make developments. There are two main types of
driver/operator feedback; the first one is Post-trip feedback, in this approach, where figures
supplied by the telematics system are conveyed back to operators to notify them of their
efficiency and if any ranges of their operating need fixing. This can be done by the fleet manager
or immediately by the system. The second one is, in-cab feedback approach, in this approach,
where immediate response is delivered, awake the operator to adjust their operating technique in
real-time. This permits the operator to identify the characteristics of their way of handling that
activate the warnings and recover them as they operate (www.fors-online.org.uk et.al)

13
2.1.4. Driver training and management
Why should we invest in driver management?

Managing your drivers/operators successfully is the correct mechanism to do. It is important to

approach driver selection and management in an informed way to ensure employees and the
public alike are not at risk. Driving has both physical and mental impressions of drivers. They
are expected to be working overtime with poor access to roadside services or nutritive meals, and
this has possible health effects. Drivers are also needed to take attention for long days.
Habitually they have little communication with other people and are affected by issues outside
their control such as road traffic and climate conditions. Drivers need the support of their firms
to confirm they are well trained and managed so that they and other road users are not put at risk.
Concerned business owners are progressively recognizing their moral obligation to manage their
workforces successfully, not least because of the current lack of trained drivers and applicants
desiring to train to become professional drivers (Transport for London T. c., 2017).

Driver Training- Q Fleet described drivers training, workplace health, and safety as follows: -
A driver instruction and preparing project should be a portion of an enterprise working
environment welfare and security technique. It should reveal a certified and continuing promise
for improving driving security. Driver instruction and preparation must be remembered for the
enterprise arranging forms, so, the essential subsidizing and different assets are caused accessible
to empower drivers to get too promising and proper training and preparation. The enterprise will
profit by driver instruction and preparing that urges drivers to improve their behaviors and
conduct toward more secure driving. While the individual has an obligation regarding applying
what is found out, the duty to give instruction, and preparing openings and screen the outcomes
rests with the business enterprise (QFleet, 2016). The initial step in defining the most suitable
education and training is to assess training needs study. It should be an organized procedure,
carried out by teaching or human resource expert, with minimum a basic understanding of
current road welfare concerns. Training to shape driver approaches and activities comprises
approximately 95 percent of all street crashes arises from improper driver characters and wrong
driver practices. Driver instruction and preparation have to be organized to address these two key
issues. Some Typical Examples of crash causes linked to driver attitude and behavior are driver
carelessness and interruption, speeding, driver anger, neglecting to comply with the street rules,

14
following too firmly, driving while affected by liquor, or potentially prescription/drugs, driving
while tired. Drivers need periodical preparation announced by the UK Commission for
Employment and Skills expressed as follows: LGV (large goods vehicle) drivers are required to
cover 35 hours of continuing preparing in each multiyear cycle as a component of the Driver
CPC (Certificate of Professional Competence) performing. Each course should stay seven hours,
be set at level 2 standards, and be confirmed by the Joint Approvals Unit for Periodic Training
(UKCES, 2014).

Equipment can be not being predicted, and breakdown occurs. People create errors, parts get old,
and sometimes preventive maintenance is just the one thing too many in an already busy day.
But by confirming adequate operator training, running preventive or condition-based
maintenance at the right time, and working to a better general belief, you’ll have a much better
shot at keeping your equipment running in very good condition. Operators detailed training on
appropriate operating techniques, basic troubleshooting, and best practices for safe equipment
use related to the machines they are assigned are mandatory. Unless the operators are not well-
trained on Equipment which they are supposed to work operational errors will happen and this
leads to rework, loss of production, and premature failure of machinery. Consequently, the
efficiency of the work process will be degraded.

Performance management and driver development

Performance management targets to develop the performance of employees and the organization
constantly. The organization must take attention to the performance review process. Also, if a
driver needs further training or support, then the timing for this should be deliberated as essential
as driving time. Ensuring the correct respectful discussions at the right time will ensure that your
drivers/operators sense they are respected members of the organization. Direct meetings with
drivers, giving them a comment and acknowledging them for their efforts, will increase their
motivation and efficiency and increase retention (Transport for London et al. 2017)

2.1.5. Vehicle fleet tracking and scheduling

Fleet activities are progressively going to vehicle telematics frameworks to support productivity,
profitability, and operational efficiencies. The vehicle telematics otherwise called a GPS fleets
the board framework or GPS vehicle following framework consolidates a GPS recipient and an

15
electronic GSM device introduced in every vehicle, which at that point imparts with the client
and electronic programming which gives observing of the vehicle area, developments, and status
of a vehicle or fleet of vehicles. Proof of organizations lessening expenses, wiping out wasteful
aspects, and finding lost equipment is making telematics an attractive scheme for transport
entrepreneurs (Waiyaki, 2015).
Telematics is a multidisciplinary area of study that embraces communications, vehicle
technologies, road transport and care, electrical engineering (sensors, dashboard, remote,
communications, etc.), and computer science. Simply, Telematics is a mechanism /tool used for
tracking vehicles and assets (GPSINSIGHT, 2016). Fleet telematics intends to completely
control equipment groups through the area following, maintenance control, and profitability
checking of individual hardware dependent on continuous area and status conveyed to fleet
control focus from the equipment. Coordination industries, vehicle industry, just as
transportation (land, ocean, and air) industry are effectively applying fleet telematics to
efficiently and securely work numerous gatherings of equipment. Earthwork, a fundamental
activity for development, depends strongly on equipment. The profitability and wellbeing of
earthwork equipment are chosen by effective administration of the equipment. Along these lines,
fleet telematics can improve earthwork activity too (Lee, 2018).

2.1.6. Vehicle replacement and disposal management

The favorable substitution of vehicles and equipment is a procedure that requires the capacity to
predict resource lifecycles dependent on costing data, usage, and resource age. Subsidizing
necessities are additionally an issue, because numerous associations, particularly government,
buy vehicles with money. The unprepared nature and usual low financing levels with money
have placed numerous activities in an aging fleet. This absence of adequate capital for
replacement can likewise bring about higher support costs because of old vehicles (Badejo,
2013). As specified by the approved fleet council policy clause 7.11 allows vehicles to be
considered as obsolete to be disposed under the following circumstances:
-Vehicles will be replaced every 5-7 years or 200,000 KM of the vehicle
-Small auto vehicles to be replaced every 4 years or 120,000 KMs
-Light Vehicles to be replaced every 5 years of 160,000 KMs
-Heavy commercial to be replaced every 7 years or 500,000 KMs.

16
Attention for disposal will also be subjected to the general circumstance of the vehicle and the
whole restoration and upkeep costs. Therefore, the disposal of vehicles considering its
km/working hours and history of repair and maintenance costs are vital issues. Unless and
otherwise running old vehicles increase operating costs, lengthy downtime, and decrease quality
of service by interrupting operations in the frequent breakdown (A1593, 2017).
Besides, a research study by (Mathewos, 2017).which is prepared and organized by different
researchers, revealed that about best practices of construction equipment disposal includes:
Dispose or replace equipment based on intuition and rules of thumb, equipment economic
analysis, when it becomes technologically outdated, unproductive, before major restoration with
high repair cost, decide equipment useful life based on asset value, downtime cost, obsolescence
cost, tax benefit, depreciation cost, upkeep, and restoration cost and profit collected from use

2.1.7. Construction Equipment and down Time Factors

Construction equipment is a major resource in the building process for a construction project.
When equipment is owned by a contractor, it forms a substantial share of his assets demanding
proper management practices. Noble project management in construction must strongly follow
the efficient use of labor, material, and equipment. The use of new equipment and advanced
techniques has made promising comprehensive changes in construction knowledge in recent
periods. The choice of the right type and size of construction equipment frequently affects the
essential amount of time and effort and thus the site efficiency of a project. It is thus vital for site
managers and construction engineers to be familiar with the features of the major types of
equipment most frequently used in construction (Sakthivel, 2016).
Studies on construction Machinery Downtime is scarce. Besides, the research conducted
currently is of little worth in demonstrating the reasons and impacts of Downtime. Also, it is of
limited application in defining the impact of Downtime on any given project. After all, they
cannot address difficulties involved with equipment management aspects in the context of a
developing country where contractors face numerous problems connected to equipment. The
below model has identified generic factors and processes related to downtime and represented
graphically how they may act together to cause Downtime and its consequences (Garza, 1990).
Addressing the impact of Downtime is important and how managerial actions at the company or
project level can eliminate, reduce, or intensify the influences of Downtime. The difference in
Downtime and its effect on different projects reflect the condition of the equipment, the quality

17
Of the equipment, the quality of maintenance and the company’s operating policies, the location
of the projects, and the nature of the work. Here in below figure 1 shows down time and its
consequences.

Figure 1.Downtime and its consequences

Site-related factors- Equipment-related Force majeure

Poor working condition& factors
-Accident
location of site Age of Equipment &Type
of equipment -Floods

Project- related Site management

factors. Downtime and its actions
-Availability of spare parts consequences
-Get substitute equipment
&resources -Idleness of
equipment &crews
Project-related factors Crew-level factors

-Schedule maintenance & Skill level of mechanics&

Inventory management operators

Source: (Vorster & De La Garza, 1990)

2.1.8. Construction Equipment and cost-related Factors

Managing creative and cost-effective site material management is very important. Research has
shown that construction materials and equipment may constitute greater than 70% of the total
cost for a representative construction project. As a result, the appropriate management of this
particular major component can increase the output and cost-efficiency of a project and help
ensure its timely completion. One of the most important factors in postponing construction
projects is inefficient resources and equipment management (Patel, 2011).

18
2.2. Performance
Performance is measuring the ability and competence of activities. This evaluation can be
communicated both subjectively and quantitatively. As indicated by the meaning of Neely and
different authors, Performance is firmly identified with productivity and sustainability (maria,
2016). Different scholars defined performance in different perspectives, but according to Ghalem
a summarized definition of performance stated as follows; “An organization that is performing
well is one that is successfully attaining its objectives” ( Otley 1999). This meaning has the basic
words to explain performance, which is primarily the word ‘successfully’ for it expresses all
aspects of performance: effectively, efficiently, economically, with quality, etc., and second the
word objectives, for attaining the objectives is the main aspect of performance (Ghalem, 2016).
In construction firms, performance is a vital issue, because it deploys huge resources to run the
operation effectively and timely in completing projects depending on contractual agreement
successfully. But practically, most organizations lack using this scares resources wisely due to
various reasons, and consequently, it leads to bankruptcy. However, the magnitude of the
problem is substantial in Africa including Ethiopia, especially about time and cost performance.
Studies confirmed this in the following articles:-
Cost and time overrun are one of the difficulties challenging construction firms in the
developing countries, during the construction process, the advancement of the project is usually
the importance of experts and the construction parties, therefore clients are always strong about
effective monitoring of construction process. However, cost and time overrun on a project is
common as a result of the dealings of different causes and differs from one place to the other.
Some of the factors have varying influence subject to the nature of the project. Some factors
have a greater effect than the other while factors disturbing others may not, and so, it is always
essential to detect the source of incidence of the factors to regulate their severity (Joshua, 2017).
In addition to this, a study conducted in asphalt road projects in Ethiopia found that the Overall
equipment effectiveness record indicated that, every one of the machines viable has 55 – 68%
Productivity issue in their performance and Out of the three essential part paces of OEE, the
accessibility rates are moderately week (84%-90%). Notwithstanding this the Performance rates
for every one of the machines were poor (68-75%), as the consequence of this, the misfortune in
the profitability of the development equipment influences the organization to bring about an

19
extra expense from 1 - 2% of the all-out month to month running expense distributed for the
equipment (Dagne, 2014).

2.3. Empirical Review

2.3.1 Fleet management practice worldwide
Investigations have revealed that building resources and equipment may establish greater than
70% of the overall budget for an average construction project. Consequently, the appropriate
administration of this particular leading factor can increase the performance of a project and
possibly safeguard its timely accomplishment. The major challenges in interrupting construction
projects are careless materials handling and equipment management (Vyas, 2011 ). Usually
speaking handling plants and equipment properly in the construction business in Iran was
advantageous for various portions of a building project and mainly it had substantial encouraging
effects on reducing the period and budget of the projects and also improving the quality of the
project. Furthermore, most of the members rely on that as construction plants and equipment
demand adequate knowledge, skill and lack of awareness can affect their performance in the
construction projects adversely (Aadal, 2014).

2.3.2. Fleet management practice in Africa

To enhance the performance of the entire supply chain system, the administration of textile
companies in the Nairobi Region has taken measures to put in place satisfactory mechanisms to
address the transportation of supplies and goods. And also, to attain improved performance
textile firms adopted vehicle scheduling, route planning, fleet management, and vehicle tracking
(Musau, 2017). Another study forwarded in transportation and Sugar companies of Kenya
assures that, there exists a straight association between vehicle finance and maintenance and
operational performance of companies, this suggests that better vehicle finance and maintenance
practice would lead to a high level of performance. Moreover, it also emphasizes that the
management of fleets and training of employees should be top importance on best operations to
avoid excessive expenditure and adverse damage with the system (Ali, 2018). Workforces must
participate and regularly educated on how to handle recent tools and machinery, to increase the
timeliness and reliability of operations. Satisfactory fleet and contemporary tracking systems
must be applied to support the planning of fleet management operations.

20
As a result fork forces will be trained on best practices, elimination of wastage, and fleet
management system would be improved (Wanyoike, 2015).

2.3.3 Fleet management practice in Ethiopia

A study carried out in Ethiopia on the objective to increase understanding of risk’s influence on
civil work construction/project performance (in terms of cost, time and quality) on title ‶The
Impact of Risk in Ethiopian Construction Project Performance″, revealed that very high risks are
ranking based on the investigation in construction project performance in respect to time and
cost, are equipment/material failure, the labor poor efficiency and equipment, and material
absence respectively. Moreover, equipment/material also has a high risk of construction project
performance in terms of quality and their risk level was more than 50% (Mitikie, 2017).
And also another study conducted in WHO Ethiopia 2018 revealed that the absence of inspecting
ways on original spare parts used, certified fleet manager and maintenance supervisors, frequent
breakdown post service, and preventive maintenance are serious problems that are ignored by the
WHO. Furthermore searching potential fuel suppliers, driver training, and management including
motivation and reward are overlooked by the organization (Begashaw, 2018). Furthermore, a
study conducted in Ethiopian Ministry of National Defense Logistics Main Department exposed
that, Underutilization of vehicles in the transport department, unsatisfactory performances and
less efficiency in this respect, lack of adequate knowledge on how to implement the principal
ways of good capacity building in improving the effectiveness of the transport services, the
control mechanism of truck transport management system in National Defense is very
traditional, and lack of availability of timely spare parts are among the major findings (Kidane,
2016 ).

2.3.3 Fleet management practice in AWWCE

The effective management of fleets in Amhara waterworks construction enterprise is not only an
issue of achieving its intended goals. But which helps to boost its overall construction
performance, that is, it enhances its operational performance (time), profitability (cost reduction),
and success of the organization (customer satisfaction). And this in turn creates satisfaction of
stockholders, (clients, consultants, and community) and at the same time in fostering the region
water sector development and competitiveness of the organization. Since AWWCE is a
governmental level one contractor in the water sector, is owned and mobilize huge capital
(machinery, materials, and human resources) in performing water supply, irrigation, road, and

21
building construction activities within and outside the region to accomplish its mission. So, the
enterprise has 1000 fleets of equipment, 479 are heavy trucks, machineries and the rest 521 are
light construction equipment which comprises light vehicles including buses, different types of
trucks (dump trucks, shower trucks, crane trucks, truck mixers, low bed trucks, and high beds
trucks), and different types of machinery (loaders, dozers, excavators, graders, compactors,
wagon drills, forklifts, crushers, batching plant, concrete mixers ,generators and so on) engaged
in the operations of construction projects (AWWCE, Annual report, 2019). But without proper
management of these numbers of fleets, it is impossible to accomplish projects timely and
efficiently. Even if the enterprise has these amounts of machinery, most of it served 5-10 years
and above. And due to frequent breakdown and inefficiency, they are not serving in its full
capacity. So, the enterprise forced to use rental machinery to fulfill the construction operation
demand to carry out construction projects within contractual time. For instance, three successive
years finance department report shows that 104,476,360.38; 36,187,492.30; 14,849,005.32
million birr payments for rental machineries respectively. And on the contrary the enterprises
2018 (2010Eth.c) year main office report showed that 43,310 and 38,442 hours of down and idle
time for light vehicles and machinery due to maintenance and mismanagement of equipment
administration departments respectively. Besides, in the 2017 (2009Eth.c) budget year report
revealed that about fuel mismanagement the enterprise lost 3263.4 litters of fuel or 65,260 birrs
arising from fuel abuse and over standard usage. And also 2019 (2011 Eth.c) budget year report
revealed that, related to fleet preventive and breakdown maintenance activities the enterprise
incurred a cost of 32,840,768.55 birr expenditure for spare parts, lubricants, repair, and
maintenance for its old and inefficient fleets engaged in the construction operation. But the
enterprise is still carrying these unproductive fleets. Furthermore, Equipment administration
2019 (2011eth.c) budget year report revealed that, 78 accidents of which 95% are drivers fault
and it is assumed that the number of accidents would be more than these. As a result, the projects
/construction progress delayed, additional costs for rented machinery and criticism from
unsatisfied customers (AWWCE, Annual report, 2017-2019) This shows that fleet management
practices (repair and maintenance management, fuel management, vehicles tracking, driver
training and management and vehicle disposal and replacement management) of the enterprise
are not well-organized in supporting projects activity and influencing the performance of the

22
construction. That is why the motive behind to study the influence of fleet management practice
on construction performance of AWWCE.

2.4 Conceptual Framework

Fleet management practices
Repair and Maintenance
management practice

Fuel management
practice
Construction Performance

Vehicle tracking -Construction Time

management practice
-Construction Cost

Driver Training &

management practice

Vehicle Disposal
&Replacement
management practice

Independent Variables Dependent Variable

Figure2.Conceptual Framework

2.5. Gaps in Literature

Even if there are literature and articles concerning transportation and fleet management roles
related to service delivery, but there is little literature concerning fleet management practice
related to its influence on the performance of construction and manufacturing sectors. However,
as far as the researcher investigated the study topic no research is carried out in Ethiopia directly
related to the influence of fleet management practice on construction performance. So, this study
aims to fill the gaps of construction enterprise′s fleet management practice and pave ways for
researchers to further investigate with fleet management practice on construction performance
which is not yet discussed and explored well in Ethiopia.

23
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Introduction
The methodology Considerations are the source of the data, study approach, sampling
techniques, data collection method, and data preparation and analysis. And also it provides an
overview of the methodological approach and the research design selected for the study. Also, it
includes the data, their sources, and an outline of the analyses.

3.2. Research paradigm

This quantitative research paper lay on the principles that cause and effect relationships. The
belief is that Post positivists embrace a deterministic philosophy in which causes probably
determine effects or outcomes. Thus, the problems studied by post positivists reflect the need to
identify and assess the causes that influence outcomes, such as found in experiments. It is also
reductionist in that the intent is to reduce the ideas into a small, discrete set of ideas to test, such
as the variables that comprise hypotheses and research questions. The knowledge that develops
through a post-positivist lens is based on careful observation and measurement of the objective
reality that exists “out there” in the world. Thus, developing numeric measures of observations
and studying the behavior of individuals becomes paramount for a post-positivist (Creswell,
2009).

3.3. Research approach

In this research paper, the researcher used a quantitative research approach; Quantitative research
is based on the measurement of quantity or amount. It applies to phenomena that can be
expressed in terms of quantity. It involves the generation of data in a quantitative form which can
be subjected to rigorous quantitative analysis formally and rigidly. This approach can be further
sub-classified into inferential, experimental, and simulation approaches to research. The purpose
of the inferential approach to research is to form a database from which to infer characteristics or
relationships of population. This usually means survey research where a sample of the population
is studied (questioned or observed) to determine its characteristics, and it is then inferred that the
population has the same characteristics (Kothari, 2004).

24
3.4. Research design
Research design is the plan for satisfying research purposes and responding to research inquiries.
In other words, it is a master plan identifying the approaches and events for gathering and
analyzing the required data. It confirms that the research paper is related to the question and that
it used meaningful procedures (W.Creswell, 2009 ). To discuss and scrutinize, to answer how
and what questions, to aware and clearly define problems related to the influence of fleet
management practice on construction performance, the case of Amhara Water Works
Construction Enterprise, the researcher used a cross-sectional explanatory and descriptive type of
research design. The focal point of explanatory research is to determine any cause and effect
relationship between the influences or variables that relate to the research problem. Causal
studies may serve as an influential role in terms of classifying motives behind an extensive
procedure, as well as, measuring the influences of changes on current standards, processes, etc.
This kind of research is related to improved levels of internal legitimacy due to the efficient
choice of themes. And also why descriptive research was used in this study, are those research
studies which concerned with describing the characteristics of a particular individual or of a
group (Kothari, 2004). Similarly the research is descriptive, descriptive data were collected
through questionnaire from employees of AWWCE and used in the descriptive analysis using
various descriptive means. Finally, the researcher employed both an explanatory and descriptive
type of research design to observe the causal relation between the influence of fleet management
practice and construction performance of Amhara Water works Construction Enterprise.

3.5. Population and sampling

In this research paper, a non-probability purposive quota sampling technique was used. Here the
researcher selects sample members based on key traits assumed to characterize the research
population. Sampling is done to fill set quotas for these traits assumed to characterize the
research population. Sampling is done to fill set quotas for these traits (Ruane, 2005).

This type of sampling is somehow related to Stratified sampling. Make sure that the sample
represents each group or stratum of the population. Unlike the stratified sampling, the researcher
in quota sampling method selects the subjects available immediately fulfilling the criteria
(Showkat, 2017).

25
In aiming to gain key information relevant to fleet management practice the researcher included
3 departments only (Construction operation and contract administration, Equipment
administration and maintenance, Purchasing, property, and finance administration departments).

According (Green, 1991) , a minimum sample size recommended as rule of thumb by the
following formula:-

o N > 50+8m, ,Where m =no. of independent variables, N= sample size

 N > 50+8*5 = 50+40=90
 N > 90 samples

Therefore, the selected departments have a day to day interaction with the enterprise fleet
management system, from the whole 744 total population (fleet officers and maintenance
coordinators, process owners, fleet managers, maintenance technicians, drivers/operators,
purchasers, store clerks property administration officers, coordinators, water, civil engineers and
construction supervisors) 137 samples are selected to gain valuable information about fleet
management practice. In doing this, Equipment administration and maintenance dpt. operators
subgroup is homogeneous, which comprises 47.58% (354) of the total population. So, 15
samples are included in department’s quota deliberately, rather than taking extra samples. Hence,
by using minimum 18% quotas from each department 137 representative samples were drawn as
follows on the next table.

Table 1: Sample size from each department

Total Target sample

No. Department Drawn Sample
Population proportion(quota)
*15-operators/drivers
* 16-fleet officers and managers
Equipment * 65-fleet mechanics and
1 administration and 521 18.42%*521 mechanic Foreman’s ,planners,
maintenance insurance workers, data
encoders
* Total= 96
Construction operation
*Construction civil, water
2 and contract 129 18.60%*129
Engineers and supervisors = 24
administration
Purchasing, property *officers, store mans,
3 and finance 94 18.08%*94 coordinators and managers
administration ,total =17
Total 744 18.41% 137
Source: Own survey (2020)

26
3.6. Instrument and Data Collection Techniques
Primary data for this study collected using questionnaires; respondents asked to rate their level of
agreement to each statement by using a five-point Likert scaled questionnaire ranging from
Strongly Disagree (1) to Strongly Agree (5). Questionnaires were distributed personally by
researcher visiting all quotas (stratum). To maintain the validity of the constructs and scale used
in this research, most of the questionnaires were adopted from previous researcher Begashaw
(2018) with modifications. In addition, some of the questionnaires were developed based on
careful review of literatures. Secondary data collected from AWWCE annual reports, published
books, journals, articles, and other printed media to get information on fleet management
practices (independent variable) and to be familiar with overall fleet management activity
influences on construction performance (dependent variable) and to forward possible
recommendations to fill the gaps and have new insights.

3.7. Reliability and Validity of Instruments

3.7.1 Validity of the study
Validity is the strength of our conclusions, inferences or propositions. It involves the degree to
which you are measuring what you are supposed to, more simply, the accuracy of your
measurement (John Adams, 2007). In this research questionnaires were checked using a pretest
during data collection, using a small sample of respondents before a full-scale study, which
helped the researcher to identify the problems in data collecting instruments /tools. In addition
questionnaires are translated to Amharic for most respondents’ (drivers/operators) who cannot
understand English language easily. Also before discharging questionnaires to respondents it was
commented by experts.

3.7.2 Reliability of the study

Reliability is the degree to which the measure of a construct is consistent or dependable, and also
that reliability implies consistency but not accuracy (Bhattacherjee, 2012). Cronbach alpha
measure of reliability was used. Cronbach’s alpha is a reliability coefficient that indicates how
well the items in a set are positively correlated to one another. Cronbach‘s alpha is computed in

27
terms of the average inter-correlations among the items measuring the concept. The closer
Cronbach‘s alpha is to 1, the higher the internal consistency reliability (Uma Sekaran, 2003).

Table 2: reliability test

Cronbach's
Variables N of Items
Alpha
Repair and maintenance 0.767 8
Fuel management 0.693 7
Vehicle tracking 0.691 7
Driver management 0.833 8
Vehicle disposal 0.912 3
Construction
0.734 6
performance
Total reliability 0.80 39
Source: SPSS result (2020)

3.8. Research Ethics

First, the research respondents were informed about the purpose and intention of the study and
well communicated; and their consent was obtained for better participation in the study.
Participants were also informed of their right not to participate in the study at any time.
Participants were informed of the benefit of the research and thus research has no risk.
Participants had the right to ask the question for clarification and refuse to give information at
any time in the research process. The data and information collected by the researchers were
secured confidentially, and the researcher is liable for problems arising from data and
information abuse.

3.9. Methods of Data Analysis and Interpretation

The research paper applied quantitative data analysis techniques for the questionnaires used; first
collected data cleaned, coded, and analyzed using administration instruments. To summarize and
analyze data the researcher used descriptive statistics (frequency, mean, and standard deviation).
And then inferential statistics such as multiple linear regression (Y = a + b1X1 + b2X2+

28
b3X3+b4X4+ b5X5) are used to observe the relations between variables and analyze data with the
help of Statistical Package for Social Sciences (SPSS.V20). Where Y is the dependent variable,
X1, X2 X3 X4, and X5 are five independent variables, and a, b1, b2, b3, b4, and b5 are
coefficients. Comparisons are made on outcome variables. Next drawing conclusions
representing it in tables, figures, and pictures to summarize it, and after conclusions,
interpretation follows in line with specific objectives.

29
 CHAPTER FOUR
4. DATA ANALYSIS, RESULTS AND DISCUSSION
4.1. Introduction
This chapter deals with data presentation, interpretation, and analysis of the study. It has two main parts:
the first part is the demography of the respondents; the second part consists of data collected from the
respondents through questionnaires. To address the research questions, 137 questionnaires were prepared
and distributed to AWWCE employees, out of these questionnaires 110 were filled and returned, the rest
27 questionnaires were unreturned, and no questionnaires were discarded due to missing data.

4.2. Response rate

A total of 110 responses out of the 137 questionnaires sent out were received, achieving an
acceptable response rate of 80.3%. All the questionnaires were edited and checked for
completeness and used in the data analysis.

Table 3: Demographic Profile of the Respondents

Frequency Percent
Male 103 93.6
Gender
Female 7 6.4
20-30 21 19.1
31-40 56 50.9
Age (in years) 41-50 19 17.3
Above 50 14 12.7
Total 110 100
Secondary school 11 10
Level of education college diploma 19 17.3
BA/BSC 58 52.7
Master’s degree 22 20
Total 110 100
Less than 3 years 6 5.5
3-5 years 24 21.8
6-10 years 52 47.3
Service Year
11-15 years 20 18.2
16 and above 8 7.3
Total 110 100

30
 Equipment management &maintenance 78 70.9
Construction operation &contract
Department 14 12.72
administration
Purchasing, property &finance administration 19 17.27
Source: SPSS result (2020)

Based on the above results in table 3, most of the respondents hold a Bachelor's degree (first
degree) with 58 (52.7%) respondents, while 22 (20%) respondents hold a Master's Degree. The
least academic qualification is a secondary school with 11 respondents (10 %). This shows that
most of the respondents have good academic qualifications to understand the concepts of the
variables and answer the research questionnaire which has a positive effect on the quality of data
collected.
Table.3 also shows that there were five categories of work experience; less than 3, 3 to 5, 6 to 10,
11 to 15, 16, and above 16 years. Accordingly, the first category accounts for 5.5% of the
respondents; the second group who had 3 to 5 years of experience was 21.8% of the respondents,
the third group majority of respondents account for 47.3%; the fourth group was 18.2%. The rest
7.3% had 16 and greater than 16 years of work experience.
From the demographic characteristics of respondents, the biggest share is taken by (96.3%) was
male and the remaining (3.7%) were female respondents. Besides, the large number of
respondents who participated in the study was from the department of fleet management. About
their qualification level, the respondents had 52.7 % of the respondents were master’s degree
holders, 20% of them were degree holders, and the rest 17.3% and 10.0% of them were college
diplomas and high school certificates respectively. Moreover, the service year of the respondents
indicates that 47.3% of the respondents had 6 to 10 work experience which indicates they had
adequate exposure to the work area and had the potential of bringing change to the organization.

4.3. Descriptive Analysis

The brief descriptive coefficient compiling a data set that is either a representation of the entire
population or a sample is called Descriptive Statistics. The main purpose is to provide a
summary of the samples and measures done on a study. Descriptive Statistics form a major
component of all quantitative data analysis when coupled with several graphics’ analysis.

31
Descriptive Statistics is quite different from Inferential Statistics, as it is more about describing
what data is being shown (Sharma, 2019). All of the variables were measured using a five-point
Likert scale where 1 denotes Strongly Disagree and 5 indicate Strongly Agree. Therefore, in this
research the interpretation made using the mean of each variable, the mean falls between the two
ranges, thus, if the mean approaches to 1 the interpretation would be the respondents didn’t agree
on the raised issue or variable and if it approaches 5 the opposite would be true.
However, in this research paper for the convenience of mean score interpretation as quoted by
Begashaw (2018) from Mesfin (2016) applied a kind of rule of thumb to create equal intervals
for a range of five points Likert scale (that ranges from strongly disagree to strongly agree in the
survey questionnaire). That is, by using 0.8 as a boundary for each element of the measurement
in the questionnaire. So, the calculated mean value that ranges from 1 to 1.80 implies strong
disagreement, a mean range from 1.81 to 2.6 (disagreement), from 2.61 to 3.40(neutral), from
3.41 to 4.20(agreement) and from 4.21 to 5.00 (strong agreement) represented respondents’
perceptions respectively.

4.3.1. Repair and maintenance management practice

Table 4: Vehicles repair and maintaining practice
Std.
N Mean
Deviation
The enterprise has a successful vehicle repair and maintenance control system. 110 3.06 0.998
The enterprise has regular Vehicle servicing Hour/Km schedule 110 3.62 0.919
The enterprise has a well-organized control mechanism for the genuine spare part
110 3.02 0.938
and lubricants used for vehicle/machinery service and maintenance.

The enterprise has a professional fleet manager and maintenance supervisor 110 3.28 0.959
The repair and maintenance garage complete the service and maintenance on time 110 2.54 0.915
The vehicles/machinery of the enterprise don’t have frequent technical failure
110 2.69 1.029
after service and maintenance
Drivers of the enterprise give proper feedback for the fleet department about
110 3.35 0.933
service and maintenance of the assigned vehicle
The fleet department of the enterprise handles complaint regarding service and
110 3.08 1.015
maintenance appropriately
Total 110 3.08 0.96325
Source: Spss result

32
Above table 4.showed that most of the respondents were somewhat signifying vehicles repair
and maintaining system disagrees with those challenges that the researcher used to determine the
challenges of practices. The first challenge which the respondents gave higher mean score was
the question state that, the organization has regular vehicle servicing time (mileage) schedule
which is the mean score of 3.62, drivers of the organization gives proper feedback for fleet
department which is the mean score of 3.35 , also the question rose about the enterprise has
professional fleet manager and maintenance supervisor which is the mean score of 3.28, The
enterprise has successful vehicles repair and maintenance control system which is the mean score
of 3.06, and The enterprise has well organized control mechanism for genuine spare part and
lubricants used for vehicle/machinery service and maintenance which is the mean score of 3.02,
and the fleet department handles complaint regarding service maintenance which is the mean
score of 3.08 and also, respondents disagreed with questions arise about repair and maintenance
garage complete the service and maintenance on time with mean scores of 2.54, the
vehicles/machineries of the enterprise don’t have frequent technical failure after service and
maintenance with mean of 2.58 and the vehicles of the organization have frequent technical
failure after service & maintenance with mean of 2. 85 and the average mean for repair and
maintenance had a means score of 3.08, which is almost the score of this variable falls between
the two extremes at neutral level. Accordingly, the analysis shows that repair and maintenance
had a means score of 3.08, in which almost the score of this variable falls between the two
extremes at a neutral level. Therefore, repair and maintenance were some of the anticipated
variables that are assumed to influence construction performance.

4.3.2. Fuel management practice

Table 5: Fuel management practice
Std.
N Mean
Deviation
The enterprise is successful in an overall fuel management system 110 3.04 1.004
The enterprise has set a standard on fuel consumption rate per vehicle 110 3.91 0.841
The enterprise provides sufficient fuel supply for field works 110 3.65 0.841
The enterprise has an independent fuel controller 110 3.11 0.971
0.958

There is a timely follow up for fuel consumption 110 3.38

33
 0.893
The enterprise has potential fuel sources (Suppliers) all over the regions 110 3.19

0.871
The enterprise allocate sufficient budget for fuel cost 110 3.58
Fuel management 110 3.4 0.91
Source: Spss result

Table 5 showed that, fuel management were one of the expected variables that are expected to
have an influence on construction performance, the first challenge which the respondents gave
higher mean scores was the question supposed that, the enterprise has set a standard on fuel
consumption rate per vehicle which is the mean score of 3.91, and the second higher score
registered also for the question supposed that ,the enterprise provides sufficient fuel supply for
field works which is the mean score of 3.65,and for the question the enterprise allocate sufficient
budget for fuel cost which is the mean score of 3.58 , also for the question rose about there is a
timely follow up for fuel consumption which is the mean score 3.38, , and the enterprise has
potential fuel sources (Suppliers) all over the regions which is the mean score of 3.19, and for
question the organization has an independent fuel controller which is the mean score of 3.11
and also, respondents replied on the question the enterprise is successful in overall fuel
management system is the mean score of 3.04 which is neutral. And the average mean fuel
management had a means score of 3.40, indicates the score of this variable, is near, neutral level.

4.3.3 Vehicle tracking management practice

Table 6: vehicle tracking practice

Std.
Vehicle tracking management practices N Mean
Deviation
The enterprise is using the vehicle tracking system for fleet management 110 3.44 0.894
The enterprise has modern technology of GPS for vehicle tracking system 110 3.61 0.93
The enterprise has installed vehicle tracking system on all AWWCE vehicles 110 2.74 0.925
The enterprise assigned a person to monitor and manage the GPS tracking system 110 3.45 0.935
The enterprise supervises speed limit by GPS tracking system 110 2.76 1.022

The enterprise provides an immediate solution for problems encounter in vehicle tracking 110 2.81 0.893
The enterprise used the Tracking system to manage fuel consumption and maintenance
110 3.22 0.913
scheduling
Source: Spss result

34
Table 6 indicates vehicle tracking was one of the proposed variables that are hypothesized to
influence construction performance. The first challenge which the respondents gave higher score
was the enterprise has modern technology of GPS for vehicle tracking system which is the mean
score of 3.61, the second question which achieved higher score is about the enterprise has
modern technology of GPS for vehicle tracking system which is the mean score of 3.45, also the
issue states about the enterprise is using the vehicle tracking system for a fleet management
system which is the higher mean score of 3.44, the enterprise used the Tracking system to
manage fuel consumption and maintenance schedule which is the mean score 3.22. But questions
related to the enterprise provide an immediate solution for problems encounter in vehicle
tracking which attained lower mean score of 2.81, and also the enterprise supervises speed limit
by GPS tracking system got lower mean score of 2.76, and the enterprise has installed vehicle
tracking system on all AWWCE vehicles which scored lowest mean 2.74, also the average mean
for vehicle tracking system had a means a score of 3.14, Accordingly, the analysis shows that
vehicle tracking had a mean score of which is the neutral score of this variable and it indicates
overall neutral level.

4.3.4 Driver training and management practice

Table 7: driver training and management practice

Std.
N Mean
Deviation
The enterprise has a well-organized supervision method on drivers/operators 3 0.929
The enterprise has well-organized drivers/operator mission or job assignment
3.18 0.979
system
The enterprise has Driver/operators behavior and communication management
2.81 0.963
system
There is a habit to motivate/reward an exemplary driver/operator 2.84 0.944
The organization has a successful performance evaluation system for drivers 2.83 1.039
There is Driver’s/operator’s Development and learning program in the
2.71 1.026
organization
Drivers are responsible for the safe, neat, care and proper handling and operation
3.12 1.002
of the assigned vehicle/machinery
Drivers always fill and properly maintain vehicle/machinery logbook for all the
3.58 0.892
distance traveled/hours worked
Total 3 0.97
Source: SPSS result

35
Above table7, reveals that driver management exists as one of the possible variables that are
presumed to influence construction performance, that most of the respondents were somewhat
signifying driver management disagreement to those encounters that the researcher used to
determine the challenges of practices. The first challenge which the respondents gave higher
mean score was the question supposed that drivers always fill &properly maintain a vehicle
logbook for all the distance traveled which is the mean score of 3.58, the organization has well-
organized drivers mission assignment system which is the mean score of 3.18, drivers are
responsible for the safe, neat and careful operation of the assigned vehicle which is the mean
score of 3.12, The enterprise has well-organized supervision method on drivers/operators which
is the mean score of 3.0. But respondents disagreed with the questions stated that there is a habit
to motivate/reward an exemplary driver, the organization has a successful performance
evaluation system for drivers, and there is a driver’s development and learning program in the
organization with a lower mean score of 2.84,2.83 and 2.71respectively. And the average mean
for driver management had a means score of 3.0. Accordingly, the analysis shows that driver
management had a means score of 3.0, in which almost the score of this variable falls at a neutral
level. As a result, the analysis shows that driver training and management was one of the
anticipated variables that were expected affecting construction performance.

4.3.5 Vehicle disposal and replacement practice

Table 8: Vehicle disposal and replacement practice

Vehicle disposal and replacement practice N Mean Std. Deviation

The enterprise has vehicle/machinery and equipment life cycle management system 110 2.62 1.049
The enterprise has vehicle/machinery and equipment Vehicle disposal management 110 2.58 1.07

The enterprise has vehicle/machinery and equipment replacement policy and practice 110 2.52 1.09

Total 110 2.57 1.069

Source:Spss result
As stated in Table 8, vehicle disposal and replacement management is one of the variables that is
expected to influence construction performance, most of the respondents suggested their
disagreement to those encounters that the researcher used to determine the challenges of vehicle
disposal and replacement management practices. Accordingly for the question, the enterprise has

36
vehicle/machinery and equipment life cycle management system with a low mean score of 2.62,
for question the enterprise has vehicle/machinery and equipment Vehicle disposal management
system with a lower mean score of 2.58, and the enterprise has vehicle/machinery and equipment
replacement policy and practices with lowest mean score 2.52, and the average mean score for
vehicle disposal and replacement management system is 2.57 which disagrees level. So, the
analysis shows that vehicle disposal and replacement management system was one of the
anticipated variables that were expected affecting construction performance.

4.4. AWWCE Construction Time and Cost performance

Table 9: construction Time and Cost performance

Std.
N Mean
Deviation
The enterprises timely Complete projects before the agreed
110 2.08 1.006
contract time.
The enterprise Complete projects without time extension 110 2.12 0.926
The enterprise complete Projects with agreed contractual cost 110 2.48 0.974
The enterprise complete Projects with agreed contractual quality 110 3.22 1.044
The enterprise projects performance progress goes in line with
110 2.7 0.914
agreed contract cost, time and client satisfaction
Total 110 2.6 0.987
Source: Spss result

Figure 3: Construction performance

Source:Spss result

37
As shown above page table 9 and in the bar graph figure 3, the overall mean value of the five
measures of construction performance is 2.6 with a standard deviation of 0.987, which indicate
that there is disagree level, this shows that, as there is low construction performance. The
average mean value of construction performance measures is between 2.08 and 3.22 with a
standard deviation between and 0.914 -1.044. As shown in the table above there is a relatively
moderate construction performance regarding project quality measure with a mean value of 3.22,
but projects progress regarding completion on contract time, cost and client satisfaction with a
mean value of 2.12, 2.48 and 2.70 respectively, which is relatively low construction
performance. And the overall average mean is 2.6 (disagree level), which indicates low
construction performance measure.

4.5. Correlation Analysis

Many studies use correlation analysis to explore the degree of association between study
variables. Especially in social science research, linear correlation analysis is a tool for
representing the closeness of one related variable to another. The linear correlation coefficient
(r or R) is such a measure providing information to the extent to which two variables have a very
close association. Though, correlation analysis can be linear and/or non-linear. The purpose of
carrying out correlation analysis is almost the same in every study and mostly, a correlation
analysis becomes useful to discover the associative (degree) relationship between independent
and dependent variables. The correlation coefficient is the measure to quantify such a degree of
relationship between the variables. Fundamentally, the coefficient of correlation R will range
between -1 and +1, i.e., -1≤R≤+1 (Senthilnathan, 2019). There is no specific way of interpreting
the correlation coefficient. So, a commonly used interpretation shows as follows:
1. Very Weak or Negligible Correlation -0.20 ≥ R ≤ +0.20, Weak Correlation,
2. To be considered (weak) -0.20 > R >-0.35 or +0.20 < R < +0.35,
3. Strongly considerable high correlation -0.50 ≥ R >-0.70 or +0.50 ≤ R < +0.70
4. Very strongly considerable correlation -0.70 ≥ R >-1.00 or +0.70 ≤ R < +1.00
Pearson correlation coefficients were determined with the objective to obtain information about
the relationships between the dependent and independent variables as presented in next page
below table 10.

38
 Table 10: Correlation coefficients between dependent and independent variables

Vehicle
Repair Fuel Vehicle Driver Construction
Disposal
&Maintenance Management Tracking Management Performance
&replacement
Pearson
1
Repair & Correlation
Maintenance Sig. (2-tailed)
N 110
Pearson
.355** 1
Fuel Correlation
Management Sig. (2-tailed) 0
N 110 110
Pearson
.379** .432** 1
Vehicle Correlation
Tracking Sig. (2-tailed) 0 0
N 110 110 110
Pearson
.508** .404** .593** 1
Driver Correlation
Management Sig. (2-tailed) 0 0 0
N 110 110 110 110
Pearson
.368** .190* .302** .520** 1
Vehicle Correlation
Disposal Sig. (2-tailed) 0 0.047 0.001 0
N 110 110 110 110 110
Pearson
.510** .345** .370** .607** .384** 1
Construction Correlation
Performance Sig. (2-tailed) 0 0 0 0 0
N 110 110 110 110 110 110
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Source; Spss result, 2020

As can be seen in the above table there is a positive and significant correlation between repair
and maintenance practice and construction performance (r=0.510, p<0.01). According to
Senthilnathan (2019) magnitude of the correlation, the relationship between the two variables is

39
strong. Besides, the result indicated that fuel management practice is positively and significantly
correlated with construction performance (r=0.345, p<0.01), the relationship is weak.
Consequently, as the value shows the relationship between the two variables for RM is strong
and for FM is weak.
The table result also showed that vehicle tracking management practice is positively and
significantly correlated with construction performance (r=0.370, p<0.01) which indicates a
moderate relationship between the two variables. Further, the result indicated that driver training
and management practice has a strong relationship with construction performance which has a
positive and significant correlation at (r=0.607, p<0.01). Also, the result indicated that vehicle
disposal and replacement management practice are positively and significantly correlated with
construction performance at (r=0.384, p<0.01) which is moderate.
Generally, the correlation analysis showed that there is a positive and statistically significant
relationship between fleet management practices and the construction performance of AWWCE.
These findings are consistent with the findings of Begashaw (2018), Abebe (2018), and Ayoma
(2013) who conclude that transportation/ fleet management practices influence the
performance/efficiency of organizations incurring additional costs.

4.6. Regression analysis

Before carrying out multiple regression analysis, the researcher has checked the required
assumptions that the data must meet to make the analysis reliable and valid. The following
assumptions of multiple linear regressions were tested using SPSS.

A. Linearity test
Linear regression needs the relationship between the independent and dependent variables to be
linear. It is also important to check for outliers since linear regression is sensitive to outlier
effects. One way to test the linearity assumption can be through the examination of scatter plots
(Gregory, 2018).
The scatter plot on Appendix B-1 shows there is a linear relationship between construction
performance (CP) and the independent variables (RM, FM, VT, DM & VD)

40
 B. Multi collinearity Test
Multi collinearity can mainly be detected with the help of tolerance and it is reciprocal, called a
variance inflation factor (VIF). The tolerance is the percentage of the variance in a given
predictor that cannot be explained by the other predictors. By definition tolerance of any specific
explanatory variable is, Tolerance = 1-R2
Where, R2 is the coefficient of determination for the regression of that explanatory variable on
all remaining independent variables.
Tolerance close to 1 indicates that there is little multi collinearity, whereas a value close to zero
suggests that multi collinearity may be a threat. There is no formal cutoff value to use with
tolerance for determining the presence of multi collinearity. A tolerance value below 0.1
indicates a serious collinearity problem and that a tolerance value less than 0.2 indicates a
potential collinearity problem. As a rule of thumb, a tolerance of 0.1 or less is a cause for
concern (Senaviratana, 2019).
The variance inflation factor (or VIF) of a linear regression gives us an idea of how much the
variance of the regression estimates has been increased because of multicollinearity. This is
easily calculated in SPSS as part of the model outputs. As a rule of thumb, if the VIF values are
greater than 10, then multicollinearity may be a problem (Pampaka, 2020). Therefore, as the
value is shown below table 11, the predictors are not correlated and it is not the problem of the
study.
Table 11: Multi collinearity test

Unstandardized Standardized Collinearity

Coefficients Coefficients Statistics
Model T Sig.
Std.
B Beta Tolerance
Error
(Constant) 0.175 0.361 0.484 0.629
RM 0.278 0.096 0.255 2.885 0.005 0.7
FM 0.092 0.102 0.077 0.902 0.369 0.748
1
VT -0.046 0.112 -0.04 -0.415 0.679 0.601
DM 0.435 0.106 0.443 4.12 0.000 0.471
VD 0.038 0.058 0.057 0.656 0.513 0.711
a. Dependent Variable: CP
Source: Spss result

41
 C. Normality test
Most of the parametric tests require that the assumption of normality be met. Normality means
that the distribution of the test is normally distributed (or bell-shaped) with 0 means, with 1
standard deviation and a symmetric bell-shaped curve (Gregory, 2018).
Also, multiple regressions assume that variables have normal distributions. This means that
errors are normally distributed and that a plot of the values of the residuals will approximate a
normal curve. Two common methods to check normality assumptions include using a histogram
and a Normal P-P Plot. It can be concluded that normality is guaranteed as the histogram
generated is normally distributed and the P-P plot follows the diagonal reference line as shown in
below figures 4 and 5 Histogram graph and normal p-p plot graph consecutively. Hence, in this
research as can be observed below, the test is normal.

Figure 4: Histogram

(Source: Spss result)

42
Figur 5. P-P Plot

(Source: Spss result)

D. Homoscedasticity
Homoscedasticity means that the variance of errors is the same across all levels of the IV. When
the variance of errors differs at different values of the IV, heteroscedasticity is indicated (Waters,
2002). The scatterplot of the residuals in Appendix B-3 looks like a shot it out of a shotgun, it
does not have an obvious pattern, there are points equally distributed above and below zero on
the X-axis, and to the left and right of zero on the Y-axis. Hence the figure portrayed that
residuals are equally distributed.

43
4.6.1. Model Summary

Table 12: Regression analysis model summary

Model Summary

Change Statistics
Adjusted R Std. Error of the
Model R R Square
Square Estimate R Square
F Change df1 df2
Change
1 .654a 0.428 0.40 0.50123 0.428 15.564 5 104
a. Predictors: (Constant), VD, FM, RM, VT, DM
b. Dependent Variable: CP
Source: SPSS result
As indicated in the above model summary table 12, The "R" column represents the value of R,
the multiple correlation coefficients. The R-value of 0.654 indicates a strong correlation between
construction performance and the five independent variables which shows a good level of
prediction. The adjusted R square of the multiple regression measures how much of the
variability in the outcome is accounted for by the predictors. Here the value is 0.40 implies that
40% of the variance in construction performance is due to the predictor variables repair and
maintenance management, fuel management, vehicle tracking management, driver training and
management, and vehicle disposal and replacement management while other factors not studied
in this research contributed 60% of the construction performance on Amhara Water Works
Construction Enterprise.

4.6.2. ANOVA Model Fit

In below table13, Anova test we have the F-value of 15.86 which is significant with p < 0.001.
This informs us that independent variables are taken together as a set are significantly related to
the dependent variable. Hence, the multiple regression models are overall statistically significant.
The assumption tests showed that the regression used was fit for the study.

44
 Table 13: Anova test

Mean
Model Sum of Squares df F Sig.
Square
Regression 19.783 5 3.957 15.86 0.000
1 Residual 25.945 104 0.249
Total 45.728 109
a. Dependent Variable: CP
b. Predictors: (Constant), VD, FM, RM, VT, DM
Source: Spss result
4.6.3. Regression Coefficients

Table 14: coefficients

Unstandardized Standardized 95.0% Confidence

Coefficients Coefficients Interval for B
Model t Sig.
Std. Lower Upper
B Beta
Error Bound Bound
(Constant) 0.175 0.361 0.484 0.629 -0.541 0.89
Repair &Maintenance 0.278 0.096 0.255 2.885 0.005 0.087 0.468
Fuel Management 0.092 0.102 0.077 0.902 0.369 -0.11 0.294
-
1 Vehicle Tracking -0.046 0.112 -0.04 0.679 -0.268 0.175
0.415
Driver and training Management 0.435 0.106 0.443 4.12 0.000 0.226 0.644

Vehicle Disposal and Replacement 0.038 0.058 0.057 0.656 0.513 -0.076 0.152

a. Dependent Variable: CP
Source: Spss result

In the above Regression Model, the un-standardized coefficients (b) of Repair &Maintenance
management, Fuel Management, Vehicle Tracking, Driver training and Management, and
Vehicle Disposal and Replacement management shows the relative influence on construction
performance of Amhara Water Works Construction Enterprise. Driver training and Management
(β=0.435) has the most positive effect on construction performance, followed by Repair
&Maintenance (β=0.278), Fuel Management (β=0.092), Vehicle Disposal and Replacement
management (β=0.038) and Vehicle Tracking management (β= -0.046) respectively.

45
From the previous page (46), table14, regression model of the study can be generated as:-
Y = 0.175+0.278X1 + 0.092X2 + (- 0.046X3) +0.435X4+.038X5
Where; Y = construction performance
X1 = Repair and maintenance practices, X2 = Fuel management practices, X3 = Vehicle
tracking management practices, X4 = Driver training and management practices, and
X5 = Vehicle disposal and replacement management practices.
The result indicates that setting all independent variables at zero, then a unit increase in repair
and maintenance Management, leads to 0.278 increases in construction performance, whereas a
unit increase in fuel Management leads to 0.092 increases in construction performance. Besides
this, a unit increase in vehicle tracking Management leads to a - 0.046 decreases in construction
performance. And also At the same zero value, a unit increase in driver training and
Management and vehicle disposal Management results to 0.435 and 0.038 increases in
construction performance respectively. This reveals that driver training and management
practices have the largest influences on construction performance with a value of 0.435, and next
repair and maintenance have larger influences on construction performance value of 0.278.
So, at 5% level of significance, repair and maintenance management, and driver training and
Management practices are significant in determining the relationship between fleet management
practices and construction performance, since their respective p-values are less than 0.05. This
implies that the null hypotheses are false and are to be rejected, but the alternatives are accepted.
At the same level of significance, fuel management, vehicle tracking, and vehicle disposal
management are not significant in explaining the relationship between fleet management
practices and construction performance. So, the null hypothesis was not rejected (fail to reject).
In the following sub-sections, the hypothesis for each fleet management practices was tested and
discussed.

46
4.6.4 Hypothesis testing

4.6.4.1 The influence of RM management practice on CP of AWWCE

H0.1 Repair and maintenance management have no direct influence on the construction
performance of AWWCE (α≤ 0.05).
Table 13 shows that there is a positive direct influence of repair and maintenance on construction
performance, since (Beta= 0.255, t=2.885, sig. 0.000, p<0.05). Therefore, the null hypothesis is
rejected, which indicates that repair and maintenance has a direct influence on the construction
performance of AWWCE at (α≤0.05). Thus, repair and maintenance have a direct influence on
construction performance of AWWCE that goes in line with previous researches for instance
(Siefu,2016),confirmed in his study "Assessment of fleet management practices of
pharmaceuticals fund and supply agency of Ethiopia" and concluded that for the efficient supply
of pharmaceutical equipment and supplies fleet repair and maintenance practices affect
transportation efficiency of the agency. Another study was also revealed by Gitahi (2014)
revealed that vehicle repair and maintenance influence service delivery/performance to refugees
in UNHCR Kenya program to a very great extent. Hence, Alternative hypothesis 1 is
accepted.

4.6.4.2 The influence of FM practice on construction performance

H0.2 Fuel management has no direct influence on the construction performance of AWWCE
( α ≤ 0.05).
Table 13 shows that there is no positive direct influence of fuel management on construction
performance, since ( sig. 0.369, p>0.05). Therefore, it fails to reject the null hypothesis, which
indicates that Fuel management has no direct influence on the construction performance of
AWWCE because the p-value is greater than 0.05. But, the result contradicts with most studies
that recommend and concludes that Fuel management has a direct effect on construction
performance. For instance, Begashaw (2018) concluded that fuel management affects the fleet
efficiency of WHO Ethiopia, which contradicts this study. Hence, it fails to reject the null
hypothesis 2

47
4.6.4.3 The influence of VT management on construction performance

H0.3 Vehicle tracking management has no direct influence on the construction performance of
AWWCE (α ≤ 0.05).
Table 13 shows that there is no relation between the influence of Vehicle tracking management
and construction performance, since ( sig. 0.679, p>0.05). Therefore, it fails to reject the null
hypothesis, which indicates that Vehicle tracking management has no direct influence on the
construction performance of AWWCE because the p-value is greater than 0.05 which is
insignificant. But, Vehicle tracking management has no direct effect on construction
performance of AWWCE that contradicts with most studies that recommend and concludes that
Vehicle tracking management has a direct effect on construction performance. For instance,
Abebe (2018), concluded that vehicles tracking management affects the efficiency of UN
selected agencies in Ethiopia, which contradicts this study. So, it fails to reject the null
hypothesis 3.

4.6.4.4 The influence of DM on construction performance

H0.4 Driver training and management have no direct influence on the construction performance
of AWWCE (α ≤ 0.05).
Table 13 shows that there is a positive direct influence of Driver training and management on
construction performance, since (Beta= 0.443, t=4.120, sig. 0.000, p<0.05). Therefore, the null
hypothesis is rejected, which indicates that Driver training and management have a direct
influence on the construction performance of AWWCE at (α≤0.05). Thus, Driver's training and
management have a direct influence on the construction performance of AWWCE that goes in
line with previous researches for example (Abebe, Begashaw 2018), indicated that poor Driver
training and management results in unsatisfactory performance and loss of organization
resources. Hence, the Alternative hypothesis 4 is accepted.

48
4.6.4.5 The influence of vehicle VD management on Construction performance

H0.5 vehicle disposal and replacement management have no direct influence on the construction
performance of AWWCE (α≤ 0.05).
Table 13 shows that there is no relation between the influence of vehicle disposal and
replacement management and construction performance, since ( sig. 0.513, p>0.05). Therefore, it
fail to reject the null hypothesis, which indicates that vehicle disposal and replacement
management have no direct influence on the construction performance of AWWCE, because the
p-value is greater than 0.05 which is insignificant.
But, vehicle disposal and replacement management have no direct influence on the construction
performance of AWWCE that contradicts most studies that recommend and conclude that
vehicle disposal and replacement management have a direct influence on performance. For
instance (Ampiah O., 2018) concluded that to increase the service transport efficiency of the
organization, Over-aged vehicles should be withdrawn from the transport pool and be replaced
with new ones to reduce frequent breakdowns, high maintenance costs, and high fuel
consumption. So, it fails to reject the null hypothesis 5.

4.7. Discussion
The purpose of this study was to examine the influence of Fleet management practice on
Construction performance in the case of Amhara Water Works Construction Enterprise. In this
study, five variables were identified to measure fleet management practices. These are repair and
maintenance management, driver training and management, Fuel management, Vehicle tracking,
and disposal management. On the other hand, enterprise performance was measured in terms of
construction cost and construction time. Appropriate research design and methodology was used
for the study, and then research instrument was developed. The research instrument was pre-
tested before distributing to the study population to check the internal consistency of the
constructs. Different studies have been undertaken on the subject area but most of them were
focused on service industries. This research differs from the other is that, it covers influence of
fleet management practice of construction Enterprise (AWWCE) .The study intended to achieve

49
five specific objectives and based on these specific objectives, research questionnaires were
developed and distributed to the Equipment management and maintenance department,
Construction and contract administration department and purchasing, finance, and property
administration department under study. Then the data obtained were analyzed in quantitative
approach and by using regression analysis with help of SPSS version 20, finally the results
obtained are as follows below.
This research discovered that, the five fleet management practices (RM, FM, VT, DM and VD)
have a positive and significant relationship with the construction performance of Amhara
Waterworks Construction Enterprise. And also concerning hypothesis:-

Influence of Repair and Maintenance Management on construction

Performance
 The findings of the study revealed that the construction performance of Amhara
Waterworks Construction Enterprise has been positively and significantly influenced by
repair and maintenance management practices.
 The result of the analysis also indicates that there is statistically significant relationship
between repair and maintenance management and construction performance; Beta = 0.278,
P < 0.05 (P =0.005). Therefore, repair and maintenance management significantly
predicts the performance of the construction projects. Furthermore, previous research had
provided some empirical support that repair and maintenance breakdowns were
recognized to be the major challenge to fleet management in the study. For instance,
Mathews (2017), indicated that idle time, downtime, poor equipment maintenance
practices, equipment breakdown, and over maintenance of equipment were found to be
the major problems that affect construction equipment planning and management on
Addis Abeba City Road Authority projects.
Influence of Driver training and Management on construction Performance
 The result of this study displayed that, driver training and management positively and
significantly affects the construction performance of Amhara Waterworks Construction
Enterprise. Likewise the result of Siefu (2016), and Kidane (2016), also witness that,
driver training and management influences on transport efficiency of firms.

50
 The result of the analysis again confirmed that, there is a statistically significant
relationship between driver training and management and construction performance;
Beta =0.435, p < .05 (p =0.000). And the result go in line with Begashaw (2018), driver
training and management had significant effect on fleet efficiency of WHO Ethiopia.
Consequently, driver training and management significantly predicts the performance of
the construction projects of AWWCE.

51
 CHAPTER FIVE
5. CONCLUSIONS AND RECOMMENDATIONS

5.1. Conclusions
Relying on the results of the study and the summary of findings, the study concludes that there is
a significantly positive relationship between Fleet management practices and construction
performance. Besides this, repair and maintenance and driver training and management practices
are statistically significant and positively influence the construction performance of AWWCE.
And more over, in other word repair and maintenance and driver training and management
practices had predicting power on construction performance of AWWCE. Hence, the enterprise is
expected to enhance its fleet management practices to gain better construction performance.
The analysis result of the study again represents that the mean score values for fleet management
practices were 3.0, above the average mean value showing that fleet management practices of
AWWCE are moderate. And also the study revealed that the average construction performance
means value of AWWCE is 2.6 (disagree level) which indicates low construction performance.
Hence, based on the findings presented in the previous section the following conclusions are
drawn as follows:

Repair and maintenance practice and construction performance are positively and
significantly related, and also it has significant influence on construction performance.
Questions related to the repair and maintenance garage complete the service and
maintenance on time, and frequent technical failure after service and maintenance
practices are serious issues that are ignored by the Enterprise.
The fuel management practice of the Enterprise is in moderate condition.
In-Vehicle tracking management practice, questions concerning enterprise has installed
vehicle tracking system on all AWWCE vehicles, the enterprise supervises speed limit by
GPS tracking system, and the enterprise provides an immediate solution for problems
encounter in vehicle tracking are issues neglected by the Enterprise and needs special
attention

52
 Driver training and Management practice and construction performance are positively
and significantly related, and also it has significant influence on construction
performance.
Questions concerning Driver’s/operator’s Development and learning program in the
organization, the enterprise has Driver/operators behavior and communication
management system, the organization has a successful performance evaluation system for
drivers and there is a habit to motivate/reward an exemplary driver/operator are serious
cases which are overlooked by the Enterprise.
Vehicle disposal and replacement management practice has the lowest average means
with a value of 2.57, which indicates that the enterprise was not practicing life cycle
management system. In addition, Vehicle disposal and replacement management
practices are dis regarded by the enterprise.

5.2. Recommendations
By confirming the study results, the researcher recommends the following points as sound
recommendations to the problem as follows.
 To improve the construction performance of AWWCE, the repair, and maintenance
garage should complete the service and maintenance of vehicles and equipment on time.
 The Enterprise garage must avoid maintenance rework with a quality inspection and
check up to avoid frequent technical failure after service and maintenance.
 The enterprise should install a vehicle tracking system on all AWWCE vehicles and
equipment to catch real-time information to monitor fleets.
 An immediate solution for problems encounter in vehicle tracking must be fixed quickly,
to work the fleet management effectively.
 The enterprise should control and supervise speed limit by a GPS tracking system, to
protect drivers and decrease road accidents.
 To motivate and enhance the efficiency of Driver/ operators, the organization should set
and implement development and learning programs deliberately.
 The enterprise has to implement Driver/operators behavior and communication
management system for easy coordination and integration of job assignments

53
  For improvement and inspiration of drivers and operators the enterprise should have
successful performance evaluation system
 The organization should set a system and develop a habit to motivate/reward an
exemplary driver/operator, in succeeding the aim of driver training and management
system.
 The enterprise should frame policy for vehicle/machinery and equipment life cycle
management system.
 The enterprise should practice vehicle/machinery and equipment Vehicle disposal
management, so as to dispose old and poor performance fleets.
 The enterprise should establish short and long term strategy to vehicle/machinery and
equipment replacement policy and practice.

5.3. Limitation and Suggestion for Future Researchers

Even though this research paper was subjected to different literatures and data analysis tools, it
has its own limitations and should be mentioned in order to pave the way for further studies. The
first limitation of this study is generalizations of findings, since the study was limited to single
construction Enterprise, the finding of the study may not be applicable to other non-construction
sectors. The second limitation is because of time and resource constraint this study is limited on
influence of fleet management practice on construction cost and time performance only. Another
limitation is that enterprise construction performance might be affected not only by fleet
management practice, but also by various other variables not considered in this study. In carrying
out this study significant constraint was the number of samples, inadequate literatures or
secondary source accessibility on construction equipment fleet management practices. Finally,
this study may need further testing because this study was restricted to one Enterprise only
(AWWCE head office).

54
 REFERENCES
Aadal (2014), Impact of Plants and equipment management in construction industry of Iran

A1593 (2017),disposal of municipal fleet asst

Ali, Abdallah Mohamed (2018), intelligent fleet management system, information communication
technology, and operational performance of transport companies in Mombasa County, Kenya

Anol Bhattacherjee (2012), Social science research: principle, methods, and practices

AWWCE (2017-2019), annual report

Begashaw (2018), the effect of fleet management on fleet efficiency from the perspective of the
employee

Caterpillar Performance Handbook, (1998), Edition 29

David Kolman, (October 2010), Vehicle Fuel Management, fleet maintenance best practice for
maintenance management

Deanna Schreiber-Gregory (2018), Logistic and Linear Regression Assumptions

Enock Gideon Musau, Professor. Gregory Namusonge, Dr. Elizabeth Nambuswa Makokha, and
Dr. John Ngeno (2017), the Effect of Transport Management on Organizational Performance
among Textile Manufacturing Firms in Kenya, International Journal of Academic Research in
Business and Social Sciences

Garza (1990), Down time model development for construction equipment

G. P. Sullivan, R. Pugh, A. P. Melendez and W. D. Hunt, (2002), Operations & Maintenance

Best Practices, A Guide to Achieving Operational Efficiency

Jiali fu (2017), evaluating and improving the transport efficiency of logistics operations

Otto Ampia (2018), challenges of vehicle fleet management and control in the University of
Education, Winneba, Ghana

John W. Creswell (2009), Research design: Qualitative, quantitative, and mixed methods
approach.3rd Ed.

Joshua (2017), cost and time performance information of building projects in developing
economy

Kidane(2016), Assessment on Truck Transport Management practices in Ethiopian Ministry of

National Defense Logistics Main Department

55
Khyomesh V. Patel and Prof. Chetna M. Vyas (2011), Construction Materials Management on
Projects Sites, National Conference on Recent Trends in Engineering & Technology

Kothari (2004), Research methodology methods and techniques

Mathewos (2018), a Study on Construction Equipment Planning and Management Problems in

Road Construction Project (A Case Study: The Addis Ababa City Roads Authority)

Maria (2016), organizational performance, a concept that self seeks to find itself

Mekdim Mathewos (2017), a Study on Construction Equipment Planning and Management

Problems in Road Construction Project (A Case Study: The Addis Ababa City Roads Authority)

Mitikie, B.B., Lee, J. and Lee, T.S. (2017), the Impact of Risk in Ethiopian Construction Project
Performance, Open Access Library Journal

Pampaka (2020), Multiple Linear Regression (2nd Edition)

Professor Bamidele Badejo (2013), fleet operations and maintenance imperatives

Q Fleet driver safety fact sheet (2016), Driver training and education

R. Keith Mobley (2004), Maintenance Fundamentals, Second Edition

Roscoe, J. T. (1975). Fundamental research statistics for the behavioral Sciences (2nd Ed.). New
York: Holt, Rinehart, and Winston.

Schreiber-Gregory (2018), Logistic and Linear Regression Assumptions

Seung Soo Lee (2018), Utilization analysis methodology for fleet telematics of heavy earthwork
equipment, Automation in Construction

Sekaran (2003), research methods for business

Senaviratana (2019), Diagnosing multicollinearity of the logistics regression model

Senthilnathan (2019), Usefulness of Correlation Analysis

Sharma (2019), Descriptive Statistics, Horizons University, Paris

Siefu (2016),Assesment of fleet management practices of Pharmaceutical Fund and Supply

Agency of Ethiopia

Solomon Abebe (2018), assessment of fleet management practices in the case of United Nations
selected agencies

56
Stajniak, M.(2016). Transport Management in Enterprises,Institute of Logistics and
Warehousing

Storhaug (2003), Benchmarking Fleet Management

Sujay Dandwate (2015), Construction Equipment Fleet management IJMER, India

Sunil Chopra and Peter Meindl (2007).Supply Chain Management, Strategy, Planning, and
Operation

Thapa (2004), a study on the purposive sampling method in research

Transport for London (2006), Fuel and fleet management guide

Tony Yankovich (2017), Fleet management 101, an introduction to key principles

UKCS (2014), Understanding Skills and Performance Challenges in the Logistics Sector

UNHCR (2016), Fleet management technology report

Waiyaki (2015), Leveraging telematics for optimal fleet performance

Wanyoike (2015), an assessment of the effect of logistics management Practices on operational

efficiency at Mumias sugar company limited, Kenya

Waters (2002), Four Assumptions of Multiple Regressions that Researcher Should Always Test

www.awwce.gov.et

www.fors-online.org.uk

57
 Appendix A:
Questionnaire
BAHIR DAR UNIVERSITY COLLEGE OF BUSINESS
AND ECONOMICS GRADUATE STUDIES
DEPARTMENT OF LOGISTICS AND
SUPPLY CHAIN MANAGEMENT

Dear respondents:
The intent of this questionnaire is gathering information to a thesis to be conducted about the
influence of fleet management practice on construction performance of AWWCE, in partial
fulfillment of the requirements for the Master of Logistics and Supply Chain Management
Degree and; to be submitted to Bahir Dar University School of Graduate Studies College of
Business and Economics to Logistics and Supply Chain Department. Therefore, I respectfully
request you to consider your participation in responding to the questionnaire in high importance,
to give the researcher a great deal of clarity about the issue. Also, I can assure you that the
information to be collected from you are solely for academic purpose and will be treated with
strict confidentiality. Once again, I request your valuable support in filling the questionnaire as
patiently and frankly as possible.
Thank you for your time and consideration!
 Contact address +251918707115

Instruction: Please, put a tick (√) mark in which you want to select
Part I: Questions related with background information of respondents

1. Gender? Male □ Female □

2. Age ______ years

3. Marital status? 1. Single □ 2.Married □ □ 4.others □

3.Divorced

4. Highest formal education attended? 4.1. Attained Primary School □

4.2 Secondary School □4.3.diploma □4.4.BA/BSC □4.5.Master’s degree □4.6. PhD □

58
 5. Field of Study_________________________________

6. Salary _____________________________________ birr

7. Year of service in AWWCE ___________________ years

8. Service in your last position? _________________ Years

Part II Question Directly Related to the Study

The following statements are concerned about the fact that influences of fleet management practices on
AWWCE construction performance. Please indicate the extent of your agreement or disagreement with each
statement by ticking (√) a number from 1 to 5.
Note: Select only one among the options given below
1=strongly disagree, 2=Dis Agree,3= Neutral, 4= agree, 5=strongly agree

Influence of fleet management practice and construction performance

(adopted and modified from Begashaw (2018) )
Description 1 2 3 4 5
No Vehicles Repair and Maintaining Practice
The enterprise has successful vehicles repair and maintenance
1
control system.
The enterprise has regular Vehicle servicing Hour/Km schedule
2
(preventive maintenance)
The enterprise has well organized control mechanism for genuine
3 spare part and lubricants used for vehicle/machinery service and
maintenance.
The enterprise has professional fleet manager and maintenance
4
supervisor
The repair and maintenance garage complete the service and
5
maintenance on time.
The vehicles/machineries of the enterprise don’t have frequent
6
technical failure after service and maintenance
Drivers of the enterprise gives proper feedback for fleet department
7
about service and maintenance of the assigned vehicle

59
 The fleet department of the enterprise handles complaint regarding
8
service and maintenance appropriately

FMS Fuel Management System

1 The enterprise is successful in overall fuel management system
The enterprise has set a standard on fuel consumption rate per
2
vehicle
3 The enterprise provides sufficient fuel supply for field works
4 The enterprise has an independent fuel controller
5 There is a timely follow up for fuel consumption
The enterprise has potential fuel sources (Suppliers) all over the
6
regions

The enterprise assigned a person to monitor and manage the GPS

4
tracking system

5 The enterprise supervises speed limit by GPS tracking system

The enterprise provide immediate solution for problems encounter in
6
vehicle tracking
The enterprise used the Tracking system to manage fuel
7
consumption and maintenance scheduling

DM Driver Management

The enterprise has well-organized supervision method on

1
drivers/operators
The enterprise has well-organized drivers/operator mission or job
2
assignment system
The enterprise has Driver/operators behavior and communication
3
management system
4 There is a habit to motivate/reward an exemplary driver/operator
VDR Vehicles Disposal and Replacement
The enterprise has vehicle/machinery and equipment life cycle
1
management system
The enterprise has vehicle/machinery and equipment Vehicle
2
disposal management
The enterprise has vehicle/machinery and equipment replacement
3
policy and practice

CP Construction performance

60
 The enterprises timely Complete projects before the agreed contract
1
time.
2 The enterprise Complete projects without a time extension
3 The enterprise complete Projects with agreed contractual cost

4 The enterprise complete Projects with agreed contractual quality

The enterprise uses a daily cost-benefit analysis tool (DCBA) to

5
evaluate each project's performance successfully.
The enterprise projects performance progress goes in line with
6
agreed contract cost, time and client satisfaction

THANK YOU FOR YOUR CO-OPERATION!!

የመሳሪያወች አስተዳደርና ጥገና ተግባር በኮንስትራክሥን አፈፃፀም ላይ ያለዉ ተፅእኖ

ዝርዝር ተግባር 1 2 3 4 5
No የተሽከርካሪወች /መሳሪያወች እንክብካቤና ጥገና ተግባር
1 .ድርጅቱ ዉጤታማ የሆነ የመሳሪያወች ጥገናና ቁጥጥር አሰራር ስርአት አለዉ
ድርጅቱ ተሽከርካሪወችንና መሳሪያወችን በሰሩት ሰዐት/በተጓዙት ከ.ሜ ሰርቪስ ጥገና
2
(የመከላከል ጥገና) የሚያደርግበት አሰራር አለዉ
ድርጅቱ ለተሽከርካሪወችንና መሳሪያወች ሰርቨስና ጥገና ጥቅም ላይ የሚዉሉ
3 የኦርጅናል መለዋወጫ፤ ጥራት ያለዉ ዘይትና ቅባት የተደራጀ የቁጥጥር አሰራር ስርዓት
አለዉ፡፡
ድርጅቱ በሙያቸዉ የሰለጠኑናልምድ ያላቸዉ የጥገና ባለሙያወችና ተቆጣጣሪወች
4
አሉት
5 የድርጅቱ የጥገና ጋራጅ የተሽከርካሪወችን የሰርቪስና የጥገና ስራ በሰዓቱ ያጠናቅቃል
የድርጅቱ ተሸከርካሪዎችና ማሽነሪወች ሰርቪስና ጥገና ከተሰራላቸዉ በኋላ ተደጋጋሚ
6
ብልሽት አያጋጥማቸዉም
የድርጅቱ ኦፕሬተሮች ስለያዙት ተሸከርካሪ/ማሽነሪ ሰርቪስንና ጥገናን በተመለከተ
7
ተገቢዉን መረጃ ለስራ ክፍላቸዉና ለጥገና በአግባቡ ያቀርባሉ

የድርጅቱ መሳሪያወችና ጥገና ክፍል ተሸከርካሪወችንና ማሽነሪወችን ሰርቪስና ጥገናን

8
በተመለከተ የሚቀርቡ ቅሬታወችን በአግባቡ ይዞ ይፈታል

FMS የነዳጅ አስተዳደር እና አሰራር

1 ድርጅቱ ዉጤታማ የሆነ የነዳጅ አሰራር ስርአት አለዉ
ድርጅቱ ለሚጠቀምባቸዉ ለሁሉም ተሸከርካሪወችና ማሽነሪወች የስራቸዉን ባህሪ
2
ያገናዘበ የነዳጅ ስታንዳርድ አዘጋጅቷል
ድርጅቱ ለሚያሰማራቸዉ ተሸከርካሪወችና ማሽነሪወች ለመስክ ስራ አገልግሎት
3
የሚዉል በቂ የነዳጅ አቅርቦት አለዉ
4 ድርጅቱ ነዳጅን አጠቃቀምን በተመለከተ ራሱን የቻለ ባለሙያ መድቦ ይቆጣጠራል
5 መሳሪያ አስተዳደር ጊዜዉን የጠበቀ የነዳጅ አጠቃቀም ክትትል አለዉ

61
 6 ድርጅቱ በሚሰራባቸዉ አካባቢወች ሁሉ ለመሳሪያወች የነዳጅ አቅርቦት አለዉ
7 ድርጅቱ ለነዳጅ አቅርቦት ተገቢዉን በቂ በጀት ይመድባል
VT በጂፒኤስ የተሸከርካሪወች /ማሽነሪወች ክትትል

ድርጅቱ የጂፒኤስ ቴክኖሎጅን ለመሳሪያወች አስተዳደር ቁጥጥር እና ጥገና አገልግሎት

1
ይጠቀማል
ድርጅቱ ለተሸከርካሪወችና ማሽነሪወች ክትትል ዘመናዊ የሆነ የጂፒኤስ ቴክኖሎጅን
2
ይጠቀማል
3 ድርጅቱ በሁሉም ተሸከርካሪወችና ማሽነሪወች ላይ የጂፒኤስ ቴክኖሎጅን ገጥሞላቸዋል
4 ድርጅቱ የጂፒኤስ ቴክኖሎጅን የሚከታተልና የሚቆጣጠር ባለሙያ መድቧል
ድርጅቱ የጂፒኤስ ቴክኖሎጅን ተጠቅሞ የተሸከርካሪዎችን ፍጥነት ይከታተላል
5
የቆጣጠራል
ድርጅቱ ከጂፒኤስ ቴክኖሎጅ ጋር የተያያዙ ችግሮች በሚያጋጥምበት ጊዜ ፈጣን ምላሽ
6
ይሰጣል
ድርጅቱ የጂፒኤስ ቴክኖሎጅን ለነዳጅ አጠቃቀም እና ለጥገና ክትትልና ቁጥጥር
7
አገልግሎት እየተጠቀመበት ይገኛል
DM አሽከርካሪወች/ኦፕሬተሮች አስተዳደር
ድርጅቱ በአሽከርካሪወችና /ኦፕሬተሮች ላይ በአግባቡ የተደራጀ የክትትልና ቁጥጥር
1
ስርዓት አለዉ
ድርጅቱ በአግባቡ የተደራጀ የአሽከርካሪወችና ኦፕሬተሮች የስራ ስምሪት አሰጣጥ
2
ስርአት አለዉ
ድርጅቱ የአሽከርካሪወችና ኦፕሬተሮች የስራ ግንኙነት ባህሪይና የሚከታተልበትና
3
የሚቆጣጠርበት አሰራር አለዉ
ድርጅቱ ሞዴል የሚሆኑ አሽከርካሪወችና ኦፕሬተሮችን የሚያበረታታበትና
4
የሚሸልምበት አሰራር አለዉ
ድርጅቱ ስኬታማ የሆነ የአሽከርካሪዎችና ኦፕሬተሮች አፈፃፀም የሚለካበት አሰራር
5
አለዉ
ድርጅቱ አሽከርካሪዎችና ኦፕሬተሮች አቅም ለማሳደግ የሚያስተምርበት፡
6
የሚያሰለጥንበትናየሚያሳድግበት አሰራር ስርዓት አለዉ
አሽከርካሪወችና ኦፕሬተሮች የተመደቡበት ተሸከርካሪና ማሽን በንፅህና፤በጥንቃቄ እና
7
በአግባቡ ተገቢዉን እንክብካቤ በማድረግ ይይዛሉ

አሽከርካሪወችና ኦፕሬተሮችየተጓዙበትኪ.ሜ/የሰሩበትን ሰዓት በአግባቡ በወቅቱ

8
በሎግቡክ ላይ ያሰፍራሉ

VDR የተሸከርካሪወችና ማሽነሪወች የአወጋገድ እና የመተካትና ስርዓት

ድርጅቱ ተሸከርካሪወችና ማሽነሪወች ተገዝተዉ ሲገቡ ጀምሮ እስከሚወገድበትድረስ
1
የሚከታተልበት አሰራር ስርዓት አለዉ
ድርጅቱ ያገለገሉና የብቃት ችግር ያለባቸዉን ተሸከርካሪወችና ማሽነሪወች
2
የሚያስወግድበት አሰራር ስርዓት አለዉ
3 ድርጅቱ ተሸከርካሪወችናማሽነሪወችን የሚተካበት ፖሊሲና አሰራር ስርዓት አለዉ
CP የኮንስትራክሽን አፈፃፀም
1 ድርጅቱ ፕሮጀክቶችን በዉል ላይ ከተቀመጠዉ ጊዜ በፊት ሰርቶ ያጠናቅቃል.
2 ድርጅቱ ፕሮጀክቶችን የዉል ማራዘሚያ ሳይጠይቅ በጊዜዉ ሰርቶ ያጠናቅቃል

62
3 ድርጅቱ ፕሮጀክቶችን በዉል ላይ በተቀመጠዉ ወጭ ሰርቶ ያጠናቅቃል
4 ድርጅቱ ፕሮጀክቶችን በዉል ላይ በተቀመጠዉ ጥራት ሰርቶ ያጠናቅቃል
ድርጅቱ በየዕለቱ ትርፍና ኪሳራ በመመዝገብና በመተንተን(DCBA) የፕሮጀክቶችን
5
አፈፃፀም የሚለካበት አሰራር ስርዓት አለዉ
የድርጅቱ ፕሮጀክቶች አፈፃፀም ደረጃ ከኮንትራት ጊዜ፡ወጭ ና የደምበኞች እርካታን
6
ባገናዘበ ሁኔታ እየሄደ ይገኛል

63
 Appendix B
1. Linearity test

64
 2. Multicollinearity test
Condition Variance Proportions
Model Dimension Eigenvalue
Index (Constant) RM FM VT DM VD
1 5.863 1 0.00 0.00 .00 .00 0.00 .00
2 0.055 10.355 0.02 0.00 0.1 0.02 0.00 0.72
3 0.025 15.381 0.00 0.65 0.42 0.01 0.01 0.11
1
4 0.025 15.451 0.09 0.09 0.16 0.26 0.32 0.09
5 0.020 17.106 0.55 0.12 0.31 0.12 0.12 0.00
6 0.013 20.972 0.34 0.13 0.00 0.6 0.55 0.08

3. Homoscedasticity Test

65