Human resource management on construction site by using lean and six sigma me

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Human resource management on construction site by using lean and six sigma me

  1. 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 131 HUMAN RESOURCE MANAGEMENT ON CONSTRUCTION SITE BY USING LEAN AND SIX SIGMA METHODOLOGY Sunil V. Desale * and Dr. S. V. Deodhar ** *Department of Civil Engineering, SSVPS B S Deore College of Engineering, Dhule , India. **Department of Civil Engineering, SVITS Indore (M.P),India ABSTRACT The competiveness and profit margin of organization over the other organizational depend on proper utilization of resources such as financial, physical facilities, technology, human… these factors are intimate relationship and influence to each other together, in which Human Resources is the most potential determinant. Last planner system is especially appropeate for design production control because of the value generating nature of design which renders ineffective traditional techniques such as detailed front end planning and control, which save indirect cost of the project due to additional labour/ persons accompany with security guard on site. The aim of this case study is to analysis indirect cost formation due to additional person accompany with security guard on site and gives suitable suggestion to construction professional for minimization cost burden on project cash flow. Keywords: Last planner, traditional planning, Weekly work plan, work environment. INTRODUCTION Construction industry is deemed to operate by diversify workforce, hence managing human resource issue deems to be a challenging task. However, as the role of Human factors in the process of business and productive activities, Human Resource Management is the key factor which has the immediate impact to the organizational structure, especially in the Construction Industry, so Human Resources are the most valuable source of Capital. Realizing the importance of the enormous direct impact of Human Resources Management to the organization, the theme of “Human Resource Management in Construction project” has been chosen for this case study. This study is to examine the implementation of Planning and Development of Human Resource Management on Construction site. Particularly for watchman or security guard appointed at construction site .The core of the study is to optimize the specific area of Organizational planning about human resource management. The problem is that we always neglect indirect costing through idle or unnecessary manpower on construction site in this study the efficient and effective use of watchman or security guard employed at site has been made. Case study results also indicate the INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 4, July-August (2013), pp. 131-140 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2013): 6.9071 (Calculated by GISI) www.jifactor.com IJM © I A E M E
  2. 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 132 unnecessary burden on cash reserve of organization improve through the efficient use of Human Resource in Construction Project, Human Resource Management will contribute a significant positive impact towards the cost saving in Construction. Methodology In this study project 30 sites at various places were studied .All the 30 sites construction of bungalow at different places in Dhule District The details of site location, plot area ,construction area and construction duration of all are given in table 1. At all these sites watchman was appointed. The no of family members male, female, children of each family is given in table no 2. In this case study a study was carried of 30 site surveys for primary collection data but we are able to collect data from various 25 numbers of site in that gathered information relating family members, electric consumption, water requirement etc. for calculating indirect cost burden on cash flow of site. For analysis we are represent gathered data in following table format and done a suitable calculation for achieving a result. A case study of construction of 30 bungalows was made. The details of there are given in Table 1. Sr. No Survey No. OR Gat No. Plot No. Area of Plot in M2 (Sq.ft) Area of Construction in M2 (Sq.ft) Construction Duration in months 1 GAT. NO 8/1 & 9 Morane 33 235 (2528.60) 185.87 (2000) 21 2 2 584 (6283.84) 381.00 (4100) 27 3 3 536 (5767.36) 343.87 (3700) 25 4 4 576 (6197.76) 354.92 (3819) 26 5 5 580 (6240.80) 384.39 (4136) 28 6 6 491 (5283.16) 322.02 (3465) 24 7 7 502 (5401.52) 334.57 (3600) 25 8 8 459 (4938.84) 294.42 (3168) Not Available 9 32 202 (2173.52) 137.36 (1478) 16 10 Survey NO 475/1 + 475/2 9 163 (1753.88) 115.89 (1247) 14 11 10 157 (1689.32) 124.72 (1342) 15 12 23B 150 (1614.00) 126.02 (1356) 15 13 23A 150 (1614.00) 120.63 (1298) 14 14 47B 150 (1614.00) 110.04 (1184) Not Available 15 47A 146 (1570.96) 101.21 (1089) 13 16 46B 146 (1570.96) 102.23 (1100) 13 17 46A 146 (1570.96) 104.37 (1123) 14 18 27B 149 (1603.24) 115.98 (1248) 14 19 48A 150 (1614.00) 114.87 (1236) Not Available 20 24A 148 (1592.48) 108.55 (1168) 13 21 33B 146 (1570.96) 110.31 (1187) 13 22 33A 146 (1570.96) 97.12 (1045) 13 23 i)GAT NO.37/5 & 37/6 ii)GAT NO.37/1A & 37/1B-2.2, MORANE 8A 144 (1549.44) 114.40 (1231) Not Available 24 8B 144 (1549.44) 108.46 (1167) 14 25 39 150 (1614.00) 114.59 (1233) 15 26 15 155 (1667.80) 126.58 (1362) 15 27 16 166 (1786.16) 129.46 (1393) Not Available 28 24 157 (1689.32) 118.77 (1278) 14 29 26 199 (2141.24) 137.82 (1483) 15 30 35B 146 (1570.96) 106.27 (1143) 13 Average Value 171.56 (1845.95) 18 Table:1 Data: Site Information
  3. 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 133 Sr. No Survey No. OR GAT No. Plot No. Male Female Boy’s Girl’s Total Family Members 1 GAT. NO 8/1 & 9 Morane 33 1 1 2 1 5 2 2 2 1 1 3 7 3 3 1 1 3 - 5 4 4 1 1 2 2 6 5 5 1 1 1 2 5 6 6 1 1 3 1 6 7 7 - 2 1 2 5 8 8 1 1 1 1 4 9 32 1 1 2 3 7 10 Survey NO 475/1 + 475/2 9 1 1 2 2 6 11 10 1 1 2 3 7 12 23B 1 1 2 2 6 13 23A 1 1 1 1 4 14 47B 1 1 4 2 8 15 47A 1 - - - 1 16 46B - 1 - 2 3 17 46A 1 1 - - 2 18 27B 1 1 2 - 4 19 48A 1 1 1 4 7 20 24A - 1 1 2 4 21 33B 1 1 2 2 6 22 33A 1 1 2 1 5 23 i)GAT NO.37/5 & 37/6 ii)GAT NO.37/1A & 37/1B- 2.2, MORANE 8A 1 1 1 1 4 24 8B - 1 - - 1 25 39 1 - - - 1 26 15 1 1 3 1 6 27 16 1 1 2 3 7 28 24 1 1 1 1 4 29 26 1 2 1 3 7 30 35B 1 1 1 1 4 Table 2: Watchmen’s Family Information Requirement of Resources Following figures are taken for calculation after surveying all 30 sites and average value is considered for other calculation The requirement of electricity is calculated on the basis of 1 Bulb of 40Watts, 1Fan, 8 hours per day, 1 TV unit, 3/ 4 hours per day. Fan =70 W for 8 hours = 560 W 1 Bulb =40 W for 8 hours = 320 W TV for 3 hours= 210W=210W Misc.= Total 1200W that is 1.2 units per day
  4. 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 134 i) Electricity Requirement = 7 Unit/Person/Month The requirement of Water /Person/Day is calculated as per the requirement of Watchman & his consumption- For Making fresh in the morning 2 Ltrs., for WC 5 l Ltrs., for tacking Bath 15 Ltrs.., After & Before Lunch 2 Ltrs.., Evening after Dinner 2 Ltrs., For Cleaning Vassels/Pots 20 Ltrs.(Morning –Evening). For Washing Cloths 50 Ltrs. Total 96 Ltrs. Say 100 Ltrs. For calculation purpose. ii) Water Requirement = 100 liters/Person/Day The Electricity Consumption and Water Requirement of family of watchman for all the 30 cases is shown in table no 3, this table also shows consumption of power in units per month and water requirement in litre/day Sr. No Survey No. OR GAT No. Plot No. No. Person Electricity Consumption in unit/month Water Requirement in Lit/day Remark 1 GAT. NO 8/1 & 9 Morane 33 5 35 500 2 2 7 49 700 3 3 5 35 500 4 4 6 42 600 5 5 5 35 500 6 6 6 42 600 7 7 5 35 500 8 8 4 28 400 9 32 7 49 700 10 Survey NO 475/1 + 475/2 9 6 42 600 11 10 7 49 700 12 23B 6 42 600 13 23A 4 28 400 14 47B 8 56 800 15 47A 1 07 100 16 46B 3 21 300 17 46A 2 14 200 18 27B 4 28 400 19 48A 7 49 700 20 24A 4 28 400 21 33B 6 42 600 22 33A 5 35 500 23 i)GAT NO.37/5 & 37/6 ii)GAT NO.37/1A & 37/1B-2.2, MORANE 8A 4 28 400 24 8B 1 07 100 25 39 1 07 100 26 15 6 42 600 27 16 7 49 700 28 24 4 28 400 29 26 7 49 700 30 35B 4 28 400 Average Value 4.8 33.6 unit 480 lit.
  5. 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 135 Analysis and Discussion: Assume: Cost of one electrical unit: Rs. 6/-Unit Cost of water: In Rs.250/- get 5000 lit. water means cost of one lit. is Rs. 0.05/- One month salary: Rs.3500/- + free housing Consideration of statics by using avability of data through survey: a) Average area of construction : 1846 Sq. Ft (Say 1850 Sq. Ft.) b) Average electrical consumption : 33.6 units / month c) Average water consumption : 480 lit./day d) Average payment : Rs. 3500/- per month e) Average construction duration : 18 Months. As per above available data and assumption for the average expenditure per site is; i) Average electrical expenditure : 33.6 X 6 = Rs. 201.6/- per month ii) Average Water Consumption : 480 X 0.05 = Rs. 24/- : 24X 30 = Rs. 720/- per month iii) Average Payment = Rs.3500/- per month So; average expenditure as per each site = Rs. 4421.6/- per month (Indirect Cost) Average expenditure per sq.ft= 4421.6/ 1846 = Rs. 2.39 per sq. Ft./ month Overall cost add up to completion of project = Rs. 43.02 per sq. Ft./ Project----------- (a) By analysis of above data it come to know that each contractor paid indirect cost through deploying watchmen on site up to completion of a project is Rs. 43.02 per sq. which is quite substantial and higher than rate of other finishing item such as plaster, POP and colouring etc. Improvement or suggestion in conventional method to reduce this expenditure Suggestion 1: If only one person is appointed as watchman and not allowing him to have his family at the site. The likely expenditure shall be detail. The salary paid to watchman on most of the sites can observed is Rs.3000 to 4000 per as such an average & Rs. 3500 taken into consideration. In India in general the cost of electricity power consumption is Rs.6/-- unit of a water tanker of a capacity of approx 5000 liter cost Rs.200 to 500/- per tanker varying from place to place. In this study we have taken at as Rs.250/-. Consideration of statics by using avability of data through survey: 1) Average area of construction : 1846 Sq. ft 2) Average electrical consumption : 7 units/ month 3) Average water consumption : 100 lit/person/day 4) Average payment : Rs. 3500/- 5) Average construction duration : 18 Months.
  6. 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 136 As per above available data average expenditure per site is; i) Average electrical expenditure : 7 X 6 = Rs. 42/- ii) Average Water Consumption : 100 X0.05 = Rs. 5/- = Rs. 150/- per month iii) Average Payment = Rs.3500/- So; average expenditure as per each site = Rs. 3692/- per month Average expenditure per sq.ft = 3692/ 1846 = Rs. 2.00 per sq. Ft. / month Overall cost add up to completion of project = Rs. 36.00 per sq. Ft. / Project -------- (b) By applying this simple solution we will save = (a) – (b) (By Applying this simple solution of providing = 43.02-36.00 only one watchman on site) = Rs. 7.02 per sq. Ft./ project In our case study average area of construction per project is 1846 Sq.ft that’s mean we will save near about Rs. 12,958.92 per project. (Say Rs. 13000/- per project) As such it can be seen that by adopting these technique there is a net salary of Rs.12624 per or each every site. Thereby reducing cost of project by app 2% to 3 % which is always a good amount. Following step is proposed to solve the indirect cost problem by compressing a project execution time through utilization of last planner system for compressing bar chart diagram and design realistic base plan to measure a performance and reducing an indirect cost burden. Implementation Strategy This case study proposes a way of implementing lean and six sigma methodology construction on complex and make building as a fast track projects for reducing indirect cost burden. The first step is to stabilize the work environment by defending direct construction of each component function from upstream variation and uncertainty management has not been able to prevent. Once that shield is installed, it becomes possible to move upstream in front of the shield to reduce inflow variation, and to move downstream behind the shield to improve performance Traditional Planning The construction industry devotes tremendous efforts and resources to planning projects and developing the schedules, budgets and other requirements that collectively tell project personnel what they SHOULD do. Project management thereafter monitors and enforces conformance of DID to SHOULD. Planning at the beginning of the project is replaced by control during project Execution. Everything works fine until some activity not get executed as per time schedule, then a chain reaction takes place. A vendor fails to supply a specified material at time, causing non availability of material on site, leading to a delay in construction, and late completion of a project Or, it will increase a indirect cost burden in budgeted finance such as watchmen payment, electricity charges, some hire equipment, inflated material cost, loss of rent, interest amount on raise finance etc. As slack disappears from the schedule, more and more pressure is put on everyone in the chain to produce more, faster. This usually makes things worse rather than better. Working hand to mouth
  7. 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 137 and betting on the come results in ever more non-productive time, demoralizes supervision, and directs energy and attention toward getting stuff to work with rather than how to do work as per standard and specifications If this traditional approach to planning worked perfectly, DID would always match SHOULD. Indeed, a major contractor’s project management policy includes the following statement: "The project management team is responsible for finding methods of meeting the control budgets and schedule rather than justifications for not meeting them." This tells project management that there are no legitimate reasons for failing to meet control budgets and schedule. The result is failure to identify and act on reasons why planned work does not get done, and failure to learn and improve. It is assumed that all work and resources can be coordinated by schedules, and those inabilities to perform to schedule are rare or evidence of lack of commitment. Measuring Match of "Did" with "Should" Actual measurement reveals that what actually gets done differs from what is supposed to be done roughly 1/3 of the time. The data shown in bar chart diagram are from one of many studies. On construction projects, scheduled activities amounted near about 700 during the study period, of which 252 activities were not completed as scheduled. The percentage of planned activities completed was 64%; i.e. the percentage of planned activities not completed was 36%. This kind of data suggests that the lack of fit between what we SHOULD do and what we CAN do is substantial and systemic, and that we must learn how to manage in such conditions. Returning to the chart, note that almost 80% of the misses were due to lack of materials and drawings; i.e. resources provided to the construction phase by design or suppliers. Relying on schedules to coordinate work flow through the process does not have a good track record. Measuring System and Improving Performance The second level to be added to the planning system is devoted to adjusting SHOULD to better match CAN and WILL. As explained earlier, we focus measurement on results and compare actual to desired results to see if we are on track to achieve project objectives. This results-oriented control is intended to disclose problems so they can be solved, thus keeping the project on track. In fact, this approach to control is too abstract to identify what needs to be changed in order to improve. To determine where to get involved, it is necessary to focus measurement and control on system components or levels. In the case of planning systems, that means measuring the match between output and directives at each level and understanding the root causes of mismatches. The match of WILL and DID is measured by Percent Plan Complete. The match of ADJUSTED SHOULD and WILL can also be measured and improved, as can the match of SHOULD and ADJUSTED SHOULD. Quality Characteristics of Weekly Work Plans In practical assignments, there are two other primary quality characteristics of the commitment level of planning, which will expressed here as "weekly work plans" the right sequence of work is to be selected; i.e. work in the sequence that best moves the project towards its objectives and complete a project within stipulated time and cost. Sequencing decisions can also be made by last planners based on working.
  8. 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 138 Benefits of Stabilizing the Work Environment An indication of the benefits to be achieved by stabilizing work flow is shown on bar chart diagram no 1. Due to implementation of last planner we are able to reduced construction time from 76 week to 51 week which is shown on bar chart no 2. It leads to decrease indirect cost burden on site. This is shown below through the calculation. Measuring System and Improving Performance The second level to be added to the planning system is devoted to adjusting SHOULD to better match CAN and WILL. As explained earlier, we focus measurement on results and compare actual to desired results to see if we are on track to achieve project objectives. This results-oriented control is intended to disclose problems so they can be solved, thus keeping the project on track. In fact, this approach to control is too abstract to identify what needs to be changed in order to improve. To determine where to get involved, it is necessary to focus measurement and control on system components or levels. In the case of planning systems, that means measuring the match between output and directives at each level and understanding the root causes of mismatches. The match of WILL and DID is measured by Percent Plan Complete. The match of ADJUSTED SHOULD and WILL can also be measured and improved, as can the match of SHOULD and ADJUSTED SHOULD. Suggestion 2: With reference compressed activity bar chart and suggestion one. We considered that one watchman deploys on each site and project should be complete in 12 months. Consideration of statics by using avability of data through survey: a) Average area of construction : 1846 Sq. Ft. (Say 1850 Sq. Ft.) b) Average electrical consumption : 7 units / month c) Average water consumption : 100 lit./day/person d) Average payment : Rs. 3500/- per month e) Average construction duration : 12 Months. (According bar chart no.1 & 2 after implementation of modified last planner system) As per above available data average expenditure per site is; i) Average electrical expenditure : 7 X 6 = Rs. 42/- ii) Average Water Consumption : 100 X 0.05 = Rs. 5/- = Rs. 150 / month iii) Average Payment = Rs.3500/- So; average expenditure as per each site = Rs. 3697/- per month (Indirect Cost) Average expenditure per sq.ft = 3728/ 1846 = Rs. 2.00 per sq.ft. / month Overall cost add up to completion of project = Rs 24.00 per sq.Ft. / Project According to equation a) our total saving is = 43.02 - 24.00 = Rs 19.02 per sq. Ft./ Project Total saving in project = 1846 X 18.9 = Rs 35,110.92/- Say 35,111/-
  9. 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 139 CONCLUSION This case study shows that watchmen/security guard appointment at construction site which reduces cost burden on project cost flow, by implementing lean and six sigma philosophy principles through last planner system. Client can save substantial amount and execute a project within stipulated cost if one watchmen/security guard appointment at construction site and the duration for execute a project if reduced from 18 months to 12 months. Learning Learning for future projects includes: • Incorporate production control requirements into all team members for reducing the cost burden on cash flow • Involve owner, architect and engineer in cost control process • Use team planning technique for reducing planning schedule to actual schedule • Incorporate reason identification analysis and corrective action into weekly planning
  10. 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013) 140 REFERENCES 1. Thomas H.R. and Sanvido, V.E.2000.”The role of the fabricator in labor productivity “J.constr.Eng.Manage.126(5),358-365 2. Thomas H.R. and Sanvido, V.Eand sanders S.R. (1989).”Impact of material management on productivity—A case study”J.constr.Eng.Manage.115 (3), 370-384. 3. Thomas H.R. Horman M.D.,de Souza U,and Zaviki,I (2002b) “Reducing variability to improve performance as a lean construction principle” J.constr.Eng.Manage.128(2),144-154 4. Thomas H.R.,Riley D.R.and JohnMessener (2005)”fundamental principle of site material management”ASCE Vol. 131(7) July 2005-808-815. 5. Dr Z Mallick, Mr Shahzad Ahmad and Lalit Singh Bisht, “Barriers and Enablers in Implementation of Lean Six Sigma in Indian Manufacturing Industries”, International Journal of Advanced Research in Management (IJARM), Volume 3, Issue 1, 2012, pp. 11 – 19, ISSN Print: 0976 – 6324, ISSN Online: 0976 – 6332. 6. B.P. Mahesh, Dr. M.S. Prabhuswamy and Mamatha. M, “Improvement of Quality Awareness using Six Sigma Methodology for Achieving Higher CMMI Level”, International Journal of Advanced Research in Management (IJARM), Volume 1, Issue 1, 2010, pp. 20 - 41, ISSN Print: 0976 – 6324, ISSN Online: 0976 – 6332.

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