Financial Success and Time-Management Factors in a Chemical Environment: A Case Study

Abstract

Time management and the need for management to relinquish control to the technical team members are important complements of the project management process. However, how do firmstrackthe time spentbytheir project team members on the different tasks and assignments? In addition, how do these project characteristics associated with innovative product development impact the firm's financial success factors in the manufacturing process? An empirically based study of project managers of NOVA Chemicals, located in Pittsburgh, Pennsylvania, USA, was executed to determine which selected project characteristics positively impacted the firm's ability to enhance its financial success of its various manufacturing projects. Exploratory research via principal components and factor analyses resulted in four major independent factor score constructs of time management, cross-functional teams, management relinquishing authority, and co-location of project team members, with the varimax rotation method and eigenvalue greater than one criterion. The factor scores were used to test the hypothesis that proper management of these constructs would result in greater financial success of the manufacturing projects. The overall relationship was found to be statistically significant at the 0.05 levels of a one-tailed test (F = 3.508, p = 0.029). More importantly, the factor scores of time management and cross-functional teams, few manufacturing problems were found as the most important constructs to positively impact financial success of innovative product development projects.

Keywords

empirical case study factor analysis financial success product development product innovation project management manufacturing management strategy

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