Construction Supply Chain Management
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The introduction gives a brief outline of research in the field of CSCM and its current status. This is followed by a review of literature focused on supply chain performance for process-based industry, project-based industry and project-based construction industry to highlight critical questions that elude managers of CSCM for representing, analysing and configuring supply chains. The research methodology adopted in this study is applying qualitative approach of triangulation involving foundational research and Soft Systems Methodology for validating a system of complex CSC. The study explores important phases of CSC, major problems, complexities and linkages. The concurrent viewpoints about various dimensions of CSCM have been put forth in this study in terms of several characteristics in order to provide a constitutional definition. The basic argument is to evolve a balanced normative theory that can deal explicitly both with the contents and contexts of the system and can reorient professionals towards dealing with the system more effectively to attain the socio-economic goals of the emerging era of competition and collaboration.
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Construction Supply Chain Management
- 1. By: Fayssal Al-Kilani MSc Engineering Management Construction Supply Chain Management “if you can not describe what you are doing as a process, you do not know what you are doing”
- 2. Presentation Outline • Preface • Review of Literature • Results and discussions • Application of CSCM • Conclusion • References 1
- 3. Preface CSCM is an embryonic rapid growing discipline, due to high globalization of economics, it is appropriate to understand the current practice of CSCM. Most experienced construction managers have preferred ways of managing CSCs which they have developed over many construction projects; however, they lack systematic understanding which is underpinned in this study. This study portrays a knowledge base and may be helpful in improving the managerial effectiveness in attaining construction project goals for strategic value creation. 2
- 4. Review of Literature Supply Chain performance of process-based industry Process Modeling Performance Measurement Supply Chain performance of project-based industry Supply Chain performance of project based construction industry 3
- 5. Supply Chain performance of process- based industry 1. Process Modeling developed by the Supply Chain Operations Reference (SCOR) model maintained by the Supply Chain Council (SCC) SCOR Represent Standardize the terminology SCOR Process Plan Scope Content of the model Operations strategies Management Practices Aspects Source Scope Content of the model Operations strategies Management Practices Aspects Make Scope Content of the model Operations strategies Management Practices Aspects Deliver Scope Content of the model Operations strategies Management Practices Aspects Return Scope Content of the model Operations strategies Management Practices Aspects Analyze 4
- 6. Supply Chain performance of process- based industry 2. Process Modeling developed by the Global Supply Chain Forum (GSCF) 5
- 7. Supply Chain performance of process- based industry Performance Measurement Purpose Informing Steering Controlling Balance Scorecard(BSC) Perspective The Learning & Growth Perspective The Business Process Perspective The Customer Perspective The Financial Perspective Balance Scorecard, Kaplan and Norton, 1996 6
- 8. Supply Chain performance of project- based industry Not practiced Uncertainty in timing and specifications of the project Real time supply chain visibility Lack of coordination Not following the PMP principles High inventory 7
- 9. Supply Chain performance of project- based construction industry Designers Engineers Main Contractors Specialty Subcontractors Material Suppliers Slow Learning The main characteristic for CSCM is the pricing supply Chain, that is repeating itself at any project “LOW BID WINS” except for engineers and Construction professionals. Concept • Feasibility • Finance • Design • Consultancy Engineering • Full Design • Material Take off • Material Specification Procurement • Order • Deliver • Storage • Manufacture Installation • Construction • Commissioning 8
- 10. Supply Chain performance of project- based construction industry Six Sigma and Lean Management (DMAIC) Quality Philosophy and way of improving performance by identifying the following: Where are we? Why we are here? Where we could be? Methodology to improve a company’s performance, practices and systems Define • Punctuality • Overrun Cost • Client's expectations Measure • Key Personnel Performance • S/Cs Performance • Project’s Performance • Profit Margin Analyze • Self-evaluation with static tools • Use process-based to justify Improve • DMAIC Conformance • Lessons Learnt • Personnel restructure Control • Control the performance and performance information • Minimizing the risk of non- conformance with the client 9
- 11. Supply Chain performance of project- based construction industry The Egan Report, 1998 Cause Low profitability Clients dissatisfaction with overall performance Construction time Corrective Actions Product Development Project Implementation Partnering the supply chain Production of components 10
- 12. Supply Chain performance of project- based construction industry The fruitful SCM in process-based industry does not readily translate to a construction environment given the transit of nature of production in construction projects, “O’Brien, 1999” Chronologically Studies intends exclusive review to cover the gap in literature, in light of change in business scenarios for a sustainable and need in modification. 20 Conferences has been held under the name of CSC to have a good evaluation and vision to improve the gap in the CSC. 11
- 13. Supply Chain performance of project- based construction industry A. Definition of CSCM B. Reviewing prior literature C. Phases in a construction project D. Major problems in a construction project for CSCM E. Complexities involved in a construction project for CSCM F. Linkages of a construction project for CSCM G. Characteristics of CSC H. Business models of a CSC I. Successful practices of CSC in real life J. Application of Soft Systems Methodology (SSM) for management of CSCM. 12
- 14. Critical unanswered questions in the project-based construction ind. What are the important phases in a construction project? What are the major problems in a construction project? What are the complexities involved in a construction project? What are the linkages of a construction project? What are the characteristics of ‘CSC ’? What are different business models of a CSC? What are the successful practices of CSC in real life? How can CSCM be defined and improved innovatively with ever-changing flux of interacting events in construction business? 13
- 15. What are the important phases in a construction project? 14
- 16. What are the major problems in a construction project? End user/client interface Client/design interface Design/procurement interface Main contractor/subcontractors interface Main contractor/indirect suppliers interface Production/organizing interface Organizing/handing- over interface 15
- 17. What are the complexities involved in a construction project? Project Management Scope (WBS) Schedule Budget Liquidated Damages(LDs) Identifying the Critical path of the project Execution within Safety and Quality Standards Pricing Lump Sum or Cost Plus Accurate estimation for the required manhours to complete the work with the budget Overtime and incentives Heavy Equipment estimation Tools and consumables Coordination and communication between different disciplines Compliance with the end-user and project’s specific requirement 16
- 18. What are the linkages of a construction project? 17
- 19. What are the characteristics of ‘CSC’? • Final Product influence • Physical aspects Customer Influence • Many subcontractors • Different and incompatible business purposes Fragmentation • Multiple organization • Fund flow between all Number and type of stakeholders • Conflict and mistrust • Tender price for bid evaluation Buyer-Supplier relationship • Short-term thinking • Personal interests Temporary multiple organization • Need of change within the organizationChange inertia • Changes in design and specification • Lose the trust with the vendor Make-to-Order supply chain • Inter-organizational innovation needs exploration of collaborative opportunitiesCollaborative opportunities • Since the product is not transportableCyclical demand To avoid the above with a successful output, the project must be well planned 18
- 20. What are different business models of a CSC? CSCM Models Heavy Construction (Horizontal) • Bridges • Highways • Airports • Power Plants • Refineries Light Construction (Vertical) • Apartment Buildings • Schools • Stores • Universities • Hospitals Characteristics: • Heavy Construction • High level of engineering • Publicly funded • Owned by government agencies • Sustainable engineering expertise • Light Construction • Private Projects • Commercial Banks funded • Non-governmental • Construction Managers are its key supply chain 19
- 21. What are the successful practices of CSC in real life? Investors and governors best practice are not appreciating the understanding of lessons learnt from major construction hubs in the world. i.e. US, UK, UAE, KSA, China, Japan… etc. The lesson learnt information must flow as per this process Investors / governors Client Main Contractor(s) Chief Operations Officers (COO) Projects Manager Construction Managers Site Engineers Site Supervisors Site Foremen Site Group Leaders Technicians Helpers Lesson Learnt flow process (Information) 20
- 22. How can CSCM be defined and improved innovatively with ever- changing flux of interacting events in construction business? (SSM) Soft Systems Methodology (SSM) process: 1. Enter situation considered problematical 2. Express the problem situation 3. Formulate root definitions of relevant systems of purposeful activity 4. Build conceptual models of the systems named in the root definitions 5. Comparing models with real world situations 6. Define possible changes which are both possible and feasible 7. Take action to improve the problem situation 21
- 23. Applying ‘SSM’ for improving innovatively ever- changing ‘CSCM’ say, of a coal-based thermal power project CoalFiredPowerPlant(MegaProject) Contract (tender) Project Management Engineering Procurement Construction TURNKEY PROJECT 22
- 24. SSM Stage 1: Finding out situation considered problematic Large-scale project involves multi-objective management perspective for simultaneous performance of all sub-projects of different times at different places requiring the use of scarce resources in different quantities. The mutual interest of management is in the simultaneous solution of the problems relating to timely completion on one hand and effective utilization of available resources on the other hand for the sake of effective partnering. 23
- 25. SSM Stage 2: Express the problem situation Power Ministry and Client Site Management Designers Consultant Main Contractor Subcontractors Suppliers Control and Monitor Central Electricity Authority Control and Monitor Company Managing Director Control and Monitor Project Manager Distribution Transmission Generation A Successful CSCM is with the good Interaction and Coordination 24
- 26. SSM Stage 3: Formulate root definitions The root definition is by the identification of the key transformations in order to ensure that appropriate elements of the system are captured in root definition (CATWE): Customer: The Client Actors: Power Ministry, EPC Contractor, Subcontractors, Suppliers, Consultant, site management Transformation: Previous experience and lessons learnt from other projects to implement in this project Weltanschauung (Worldview): The client to have overall picture on all ongoing and future issues without losing any Owner: Supply Chain Manager of the Construction Company Environment: Critical issues related to schedule, procurement and contracts management 25
- 27. SSM Stage 3: Formulate root definitions 26
- 28. SSM Stage 4: Building conceptual models 27 CSCM Phases Key Stakeholders: - Power Ministry - Implementing Agency - End User - Client - Architects and Consultants - Main Contractor - Direct Suppliers and S/Cs - Indirect Suppliers Jobs at Power Highway: - Generation - Transmission - Distribution Issues: - Integrations - Coordination - Collaboration - Health and Safety - Risk - Environment Performance: - Improve Productivity - Increase staff - Allow overtime - Reduce the work - Subcontract
- 29. SSM Stage 4: Building conceptual models Suggestive measure for managing CSCM System for the power plant construction: Concept • Feasible Definition of what is wanted from owner and suppliers • Proper communications with the parties involved for financing • Compete drawings and details to be available for tendering • Mobilization of resources Procurement • Identification of needed materials for each system • Estimation of quantities and MTO Production • Classification of the material that need to be prefabricated • Identifying the local and imported material for requesting proposals • Request for quotations (3) • Preparation of project's estimates based on best prices Installation • Scheduling material per each item that needed to be available • Finding out the delivery location for each item • Verifying materials received against the quantity ordered • Inspecting the delivered material to ensure that it is within specs Winding Up • Storing the additional material to use in other projects • Returning back extra material with/without penalty • Selling the extra material • Scraping the extra material 28
- 30. SSM Stage 5: Comparing models with the real world The developed conceptual model is to be compared with some other real- world problem from knowledge areas of construction project management, than scheduling, procurement and contract effecting the management of CSC which may impact each phase of CSCM and different stakeholders of the power plant project on a typical construction job with respect to important issues such as: Integration Coordination Collaboration Health and Safety Risk and sustainable environment 29
- 31. SSM Stage 6: Identifying Changes This has to be checked regularly, whether the currently applied models of the supply chain and the currently applied planning models are still up to date, by checking the following reporting parameters for each phase of CSCM: Comparing quotations and obtaining approval of higher up of placing order Periodically review of ordered materials and circulation of status report. Periodically monitoring the vendor’ s performance report. Addition and deletion of vendors as per their performance under management guidelines. Periodically monitoring the contract terms performance report. Addition and deletion of contract terms for delivery performance under management guidelines. 30
- 32. SSM Stage 7: Take action to improve the problem situation This stage involves putting into practice the most appropriate changes identified in the previous stage (if applicable) while integrating technology with human. Many enterprises have experienced spectacular project failures due to a number of reasons, surprisingly few of which have to do with the technology involved. Reasons that show up consistently include: The user expectations were not met The cost to implement was much greater than expected The time to implement was much longer than expected The community expectations were not met 31
- 33. Few Failure Examples and lessons learnt Nation Contribution Implementation focus Lessons learnt UK Latham (1994) Committed leadership; Focus on the customer; Integrated processes and teams; Quality driven agenda; Commitment to people; Partnering the supply chain Reducing cost and time; Quantifying the scope for improving construction efficiency; Reducing in the number of reportable accidents Egan (1998) Akintoye, McIntosh, and Fitzgerald (2000) Wolstenhome (2009) USA Cheng et al. (2010) Communication and negotiation for procurement with external companies; Shortening lead time to manufacture costly major equipment Rising material costs as a major portion of total costs in projects; Neither the major equipment supplier nor the client keeps the buffer inventory for the project; Suppliers and main contractors separately use time buffers Minchin et al. (2012) Turkey Tavakoli and Tulumen (1990) Competitive regulatory environment; New procurement systems; New management techniques; Adoption of Information and Communication Technologies; Reinforce Research and Development Tedious bureaucratic procedures; Expected attributes and requirements are not clearly defined; Uncertainties in roles and responsibilities lead to disputes between contracting parties causing delays, and sometimes project termination; Wasteful expenditure Kazaz, Manisali, and Ulubeyli (2008) 32
- 34. Implications The construction industry is being transformed to meet the new demands of the twenty-first century owing to changes in project delivery concepts, group efforts, ethical lapses, growing shortage of skilled workers and experienced managers, technological advances, and the supply chain. Managers of tomorrow have to become more astute and selective in defining their CSCs in the face of stiffer competition, where general contractors are to be looking for specialization in a niche domain to narrow competition. This study has presented an understanding on CSCM to develop vital judgments to control over work process with regard to the construction of a coal-based thermal power plant. This study on understanding CSCM is meant for inducing successful start, which is always demanded by successful construction project completion for the implementation of conceptual model 33
- 35. Conclusion As a summary of this presentation, the introduction gives a brief outline of research in the field of CSCM and its current status. This is followed by a review of literature focused on supply chain performance for process-based industry, project-based industry and project- based construction industry to highlight critical questions that elude managers of CSCM for representing, analyzing and configuring supply chains. The research methodology adopted in this study is applying qualitative approach of triangulation involving foundational research and Soft Systems Methodology for validating a system of complex CSC. The study explores important phases of CSC, major problems, complexities and linkages. The concurrent viewpoints about various dimensions of CSCM have been put forth in this study in terms of several characteristics in order to provide a constitutional definition. The basic argument is to evolve a balanced normative theory that can deal explicitly both with the contents and contexts of the system and can reorient professionals towards dealing with the system more effectively to attain the socio-economic goals of the emerging era of competition and collaboration. 34
- 36. References The Egan Report, 1998 Six Sigma and Lean Innovation Balance Scorecard, Kaplan and Norton, 1996 The PMB Book, Project Management Global Supply Chain Forum Supply Chain Operations Reference Roles of Supply Chain Management in Construction, Vrijhoef and Koskela, 2000 Construction Supply-Chain Management: A Vision for Advanced Coordination, Costing, and Control, Dr. William J. O’Brien, 1999 Construction Supply Chain Management by Stephen Pryke, Published on Sept, 2009 35
Editor's Notes
- Hello Gentlemen, I am Fayssal Kilani, MSc Engineering Management Student in the Industrial Engineering Department. I have prepared a presentation related to Supply Chain Management focused on Construction and Mainly Construction Industires. The purpose of this presentation is to explore together a wide range of conceptual issues based on researches and my personal experience in construction industries.
- Based on different sources “Construction Supply Chain Management by Stephen Pryke, Published on Sept, 2009” This book provides a unique appraisal of supply chain management (SCM) concepts alongside lessons from industry, observation and analysis gathered during the first decade of supply chain management strategies in the UK construction industry. It is briefly stipulating that any discussion of construction supply chain management is usually informed by a wide range of definitions. Construction Managers own definitions It is based on elements and the way we are linking each to the other. I have listed for you some of the key elements for a project to have a successful supply chain management process; definitely under each of the elements, we must have a sub-supply chain management. There are two major key Elements in the construction supply chain which are the client and the main contractor or EPC contractor. My focus will be on the main contractor supply chain which will cover All steps related to the topic Construction Supply Chain The link or interface between all these elements is the Construction Supply Chain Management is as follows
- Literally speaking, for analyzing the performance of supply chain. It caters several purposes and it is more a continuous task than one-time effort for Process-based modelling and this must also be for project-based modeling.
- SCOR does not provide methodology for optimization. Although the SCOR model includes all customer interactions, physical material and service transactions, and market interactions; it however does not address functional silos
- Although the importance of each of these processes may vary between different supply chains, these eight processes make up an integral part of the business to be analyzed. As the GSCF framework has defined functional silos, for example, as marketing, research and development, finance, production, purchasing, and logistics with processes intersecting them, the result can be an efficient and effective supply chain given existence of proper integration, coordination and collaboration. Each process is furthermore broken down into a series of strategic subprocesses, thus providing the blueprint for implementation of the framework. Obviously the SCOR is easier to implement as it only involves business functions of sourcing, manufacturing and logistics. The importance of GSCF model is applying the cross-functional process that promote a cross-organizational collaboration.
- The BSC was introduced by Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996). The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives: The Learning & Growth Perspective This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. The Business Process Perspective Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission). The Customer Perspective Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. The Financial Perspective Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it.
- Most of the companies are having standards related to the project management but only few of them have the supply chain management standards, which is closing the chain of as successful project management spirit Projects are mostly focused in timing and contract’s specification, usually in project’s everybody is aiming only to finish without criteria. This gives lack of sense to the procurement as in process based modeling. Project based usually they work on daily basis, even though the schedule is available, unfortunately, nobody looks at it. It is daily work. This will be certainly delay of the project implementation as well as lower the revenue. Lack of coordination in the execution of the project, by not following the specific schedule and the link between the activities which will result in drastically delays and dissatisfaction of the client The PMP Principles and standards, I don’t know if any of you know about the PMP Books. Project management is accomplished through the appropriate application and integration of logically grouped project management processes, which is mainly linking all together (Scope, Schedule, Budget, Needs, Procurement, Coordination) in other words applying standards and the right process. This will result very high inventory which increases the working capital requirement. However, most of the companies are selling all its inventories with ½ prices during the demobilization period as an example. In my previous project, the inventory was 2 Millions of dollars, we sold it by only 900,000 USD.
- Unfortunately most of the construction firms have a very slow learning curve which is deriving the lack of education at the low level and lack of communication between all relevant parties. Progressively firms are now implementing six sigma and lean management initiatives to drive efficiencies for their project operations. This transition has generated the CSCM revolution.
- Define, Measure, Analyze, Improve, Control
- Sir John Egan was the Chairman of the Construction force in UK in 1998, submitted a report the Prime Minister John Prescott under the name of rethinking construction. Product Development is by generating a new products and informing the clients about it Project Implementation is translating the generated product into a specific project on a specific site to a specific client Partnering the supply chain by: Acquisition of new suppliers through value-based sourcing. • Organisation and management of the supply chain to maximize innovation, learning and efficiency. • Supplier development and measurement of suppliers’ performance. • Managing workload to match capacity and to incentivize suppliers to improve performance. • Capturing suppliers’ innovations in components and systems Production of components by planning, manage and sustain improvement of the production to avoid waste.
- Unfortunately. The knowledge about CSCM is still to be considered basic, and therefore, many inadequately answered questions arise in ignorance and perplexity for fully understanding
- Research started based on CSC figures, different opinions varies by many different parties during the whole process. A methodology was risen in 2003 by Golfshani during one of the conferences and again risen by Bechara and Van De Ven in 2011 by advocating the use of triangulation methodology by applying it on the construction of a coal fired power plant.
- Now you can clearly see the right process of the construction supply chain management; as you can see clearly it is all dependent from the other with a certain interface. If we go more into details, we can see that there are even links between each element and all dependent on the other. In other word, construction supply chain management from the contractor perspective is usually divided into 5 Major Phases that are strictly dependent: Concept phase which has to do mainly with the end user Engineering Phase which has to do with the Engineering Deliverable list and based on the conceptual design Procurement phase that has to do with the material and vendor deliverable Production phase is practically under material management supply chain Installation Phase that is consisting on Construction and Commissioning
- 7 different major interfaces that connects all the dots of the major problems in a construction project. Basically, the main argument is the variety of opinions of the different parties in different phases and different logic. As you know, the client/end user wants to pay less with the best quality and minimum time and the main contractor wants to decrease the cost to have a good benefit. Each interface involves flows that produce a response and generate a succession of multi-directional flows until a particular function is satisfied and relevent issues are resolved. End user/client interface Compliance with client’s/end user wishes with long procedures, and satisfy the changes financing and tendering Client/design interface Client wishes, long procedures and even change in wishes and procedure to make sure the transitional phase between the concept design and full design is fully competent for both parties Design/procurement interface Design approval, Change in design, duplication of orders, delivery time, negotiating the prices with different vendors, getting many quotations for any single material to pick the lowest, quality control. Main contractor/subcontractors interface Noncompliance and nonconformance, barging over the contract and schedule, no full information Main contractor/indirect suppliers interface Delay in delivery, defected material, long time storage, warehouses compliance with the storage procedures Production/organizing interface Inaccurate data, noncompliance with the schedule, low quality, wrong deliveries (not according to the design), defected material Organizing/handing- over interface Late handing over, open punch lists items, trading and exchanging (between the client and main contractor), low quality, different opinions Mainly these problems arise when there are bad relationship between the client and the main contractor, in other words the client is waiting for any mistake that the contractor does, to point to him and make problems, in which I personally faced during my last project.
- One of the most important interface to control the complexities at any project is to have an efficient project management team, that is able to manage the famous project management triangle that consists of scope, schedule and budget. And at the end avoid the big LDs. For the scope it is important for a project manager to identify the scope of work with a clear WBS work breakdown structure that clarify each and every single step of the project. In other words, manage the link between the scope and the Level 3 or 4 schedule, to have a clear picture of the project’s status on any periodic basis, where we are, why we are here, where are going and when we will finish. After identifying these, the schedule must be charged with the manhours of each activity that is going to take place, usually gives 25% buffer to obtain the target considering the budget. Knowing the daily LDs that is going to be charged to the main contractor in case of delays. One of the most important thing in a construction project, is to identify the critical path of the project. Critical path means, the activities that will take the longest time, the biggest number of manhours and the heart of the project. In power plants usually and critical industrial projects, the critical path is the piping works and instrumentation and control. Knowing your critical path, will allow you to know how to manage your teams and the predecessor activities that leads to complete the critical works on time. Safety comes first, execution must be safe for the employees and the work quality must be within standards. In construction projects, sometimes you need to neglect minor parts of safety and quality to go ahead with the work without delays. Here is the role of the client’s consultant that will closely monitor the safety and the quality of work in order to issue nonconformance to charge the main contractor at the end of the project. This all depends on the relation between the main contractor and the client. Pricing is part of the schedule and budget discussed above, the most important is to estimate accurately and based on previous experience to avoid overrun cost. Due to criticality of the project and usually the daily delays, the main contractor will start giving overtime or incentivized tasks for the employees to achieve milestones. Evaluating these is very hard, mainly to be fair. Usually the overtime hour is 1.5 times the normal working hours. Heavy equipment estimation is also complicated, as it is needed to have most efficient utilization of the equipment and less quantity. Coordination between different discipline, is a major complex usually managed by the construction managers to avoid confrontations and problems.
- Based on the economy and the market we can see different type of links between the projects and firms.
- Soft Systems Methodology: The methodology was developed from earlier systems engineering approaches, primarily by Peter Checkland and colleagues such as Brian Wilson . The primary use of SSM is in the analysis of complex situations where there are divergent views about the definition of the problem — "soft problems" (e.g. How to improve health services delivery; How to manage disaster planning; When should mentally disordered offenders be diverted from custody? What to do about homelessness amongst young people?)
- Major construction companies that takes large scale projects in addition to many other projects in different areas with different clients, usually they undertakes the contract as EPC (Engineering Procurement Construction) – such projects are called TURNKEY PROJECTS. In which the project management is responsible of the final design, procuring the material as well as executing the work up to winding up. Such projects requires expertise engineers with good background and knowledge. Megaprojects must be divided into smaller projects or sub-project as per SSM to have a successful outcome, however, most of the companies does not apply this method for some old school mentality. In the example given, it is partially been used. In my previous project, I have applied this method and it was partially successful since it was the 1st time for my company to apply it. I will show you later how I applied it.
- As you can see in this slide. The Power Ministry and Client is the heart of the project. In other meaning, all parties are looking for the satisfaction of the ministry mainly to guarantee future projects. As per SSM, the major interactions and the problems occur are at the lower level, means, site management, designers, consultant, main contractor, subcontractors and suppliers which the close the chain of the project. On the other hand, these packages must be closely monitored by the CEA, the EPC Contractor MD and the Project Manager. This will lead to a successful generation, transmission and distribution project.
- A system owned by the supply chain head of the coal fired thermal power plant construction company, who seek data, information, knowledge, skills and experience from previous projects to prepare realistic preliminary estimates on understanding of scheduling especially for managing procurement and contract of the project for use of power ministry, implementing agency, architects and consultants, main contractor, direct suppliers and subcontractors, and indirect suppliers in generation, transmission and distribution of power. Scheduling is the fundamental for planning, control and monitoring the construction activities at many locations which involves thousands of activities where each of these activities must be analyzed based on the critical path activities by identifying the early and late start/finish and the floats with the constraints of limitation on requirement of resources.
- These measures are not limited to, the management could use its experience to agree on it (add/remove)