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CAUSE-EFFECT METHOD IN IDENTIFICATION OF CAUSES WHICH DUE TO DELAYS IN IMPLEMENTING THE PROJECTS WITH NON-REFUND FINANCING

O. Mocanu, E. Rusu, C. Gasparotti
Thursday 11 October 2018 by Libadmin2018

ABSTRACT

The present work aims to present how to identify the causes and sub-cases that lead to delays in the implementation of the projects with non-reimbursable financing using the cause-effect diagram (Ishikawa), as well as how to combat the main causes. The importance of timely identification of the major issues and the concentration of the management teams in solving them can reduce the risk of losing the grant, avoiding the decommissioning of the European funds, while helping to increase their absorption. Projects with non-reimbursable financing are implemented mainly in the Member States of the European Union, being financed under the Structural Instruments and targeting interventions in various fields such as: social, education, health, road infrastructure, tourism, and in the private environment, stimulating investments in order to develop business. During the implementation of the projects with non-reimbursable financing, the beneficiaries encounter a series of problems that negatively influence the performance of the activities carried out, which leads to delays in the first phase, after which there is the risk of losing the financing and, implicitly, abandoning the development project.
The applied method by graphically depicting of the observed negative effect and the associated potential causes allows the determination of the underlying causes, giving an overview of the problem to be analyzed by the project management team. The information resulted in the identification of the main causes allow the determination of the causes with significant influence in producing the unwanted effect, causing the management team to focus on solving the root causes, avoiding the waste of time and resources in solving the problem without justifying the effort.
Among the causes with significant influence in generating the delays in the implementation of the projects with non-reimbursable financing, the following may be considered: the long term for the project acquisitions, the inability of the beneficiaries to ensure the co-financing of the projects, the difficult procedures for granting credit to the commercial banks, the project management teams are also involved in the current activities of the institution they are part of, stopping the execution of the works carried out during the projects during the cold season, etc.
The cause-effect diagram, as a management method, assures the improvement of the implementation process of non-reimbursable projects and allows the implementation team to focus on the specific problem to be solved in a systematic and structured manner.

Keywords: financing, project management, non-reimbursable funds, cause-effect method, implementation process


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