061 logistics and productivity

MAIN SOURCE :IMPROVING CONSTRUCTION LOGISTICS
Report of the Strategic Forum for Construction Logistics Group
August 2005
LOGISTICS &
PRODUCTIVITY
PART 2

Construction Productivity-Logistics
What is preventing the industry from
addressing Logistics?
There are a number of factors such as:
 There is no real incentive to tackle this
because it is difficult to identify who
benefits.
 Those who may be required to do things
differently do not necessarily benefit it.

 Every construction job is seen as a ‘one-
off’.
 with a team built up for a short period of
time;
 then disbanded afterwards;
 it is harder to manage the system to
optimise logistics in construction;
 easier for manufacturing or retail;

 the fragmented nature of the construction
industry;
 contractual arrangements that get in the
way of logistics;
 lack of direct employment also hinders
logistics;
 Those variables list above makes logistic
on construction site more difficult.

 Advance planning and design of
projects is generally inadequate, as are
lead times.
 There is a lack of transparency in costs
throughout the construction process.
 Decisions are often based on cash flow.

 The way costs are recorded does not
help identify the potential savings
from improved logistics.
 Unlike other industries, the
information provided in construction is
generally an ‘estimate’ rather than an
exact science.

 There is a general lack of understanding of the
constraints of the supply chain.
 There is also a lack of trust and confidence that
the supply and chain will actually deliver when
required.
 Can projects rely on a ‘just in time’ delivery of
products?
 Clients (and others) believe that project cost
already allows for appropriate resources to be
committed to logistics on the project.

Off – site manufacture and Modern Methods
of Construction
One of the reasons why logistics is so important
in construction can be described as:
 the fragmented nature of the industry;
 wide range of products;
 unpredictable outside environment needs a
well planned logistics;

Good steps toward a better logistics
 innovative methods of construction;
 advance machinery;
 robotics;
 off site components;
 advance management softwares;
 Also, less products that need to be delivered to
and assembled on site all good step towards a
better logistics.

Programme for improving logistics
 No one part of the construction industry can
deliver improved logistics on its own.
 The benefits will come from the different parts of
the industry.
Inter-acting in a different way such as:
 planning together
 sharing information
 exposing the real cost of activities in a way that
is currently not typical.

Clients and logistics
 Clients have every reason to expect the
supply side to deliver their projects efficiently.
 To ensure that proper attention is given to
logistics so that the benefits referred to earlier
are delivered.
 Clients can help in this by making sure that
there is a Logistics Plan at an early stage in
their projects.

 Client should make sure that all the key
players in the supply chain have signed up
to this Plan.
 There should be a Logistics Plan prepared
at an early stage in every project.
 A Best Practice Guide prepared to help
clients understand what they can expect
from the supply side on logistics.

Design Professionals
 Design Professionals involvement in
good logistics.
 Particularly at the scheme design stage.
Logistics will be greatly helped if:
 The design professionals should draw
up a Process Map at an early stage in
the design.

 Including a Bill of Materials.
This should look at:
1. The flow of materials needed on a
project
2. Ways of minimising stockholding

Which of the professional members of the
supply chain should be responsible for this?
 This needs to be discussed among
managers.
 The quantity surveyors with their
background might have the appropriate
skills for this.

 Alternatively, it could require the
input of logistics specialists.
 Manufacturers, suppliers and
distributors clearly need to make
an input to this Plan.

 The various professional bodies
responsible for the design professions
in the construction industry –
 RIBA
 ICE
 IStruct E
 CIBSE on design issues

 RICS on measurement and costing.
 They are in the best position to
highlight the importance of logistics.
 As well as in the training of those
seeking to join the profession.

In the short term:
 This can be achieved through awareness
guidance as part of continuing professional
development.
In the medium term:
 The importance of logistics needs to feature
in the initial education and training of
University students and new members.

 The professional team needs to
prepare a Bill of Materials as part of the
Logistics Plan.
 The professional institutions consider
ways in which the role of their
profession in project logistics can be
incorporated in initial education and
training.

Main Contractors/specialist contractors
 Many see the construction manager as the key
player in co-ordinating the logistics on a
construction project.
 This is not a function that is being carried out as
effectively as it should be across the
construction industry.
 In some major projects logistics specialists are
being employed.

 The responsibility for project logistics
must rest with the main contractors.
 it is essential they drew up a Logistics
Plan in consultation with the rest of
the supply chain at the outset of a
project.

 The Bill of Materials will be an important
input to this.
 The specialist contractors should each
prepare that sub-set of the Logistics Plan
relevant to their specialist input.
 They must decide on how they will be
making optimum use of the skilled labour
on site.

 Those responsible for the logistics on a
project must have the right skills to perform
the function.
 CITB Construction Skills is asked to
recommend how logistics skills can be
developed in the industry.
Therefore:
 Main contractors most prepare a Logistics
Plan in consultation.
 The rest of the Supply Chain at the outset of
each project must be involved.

 This Plan should include the input to the
project from the specialist contractors.
 Also, the key manufacturers and
suppliers.
 CITB Construction Skills review the
need for logistics skills in the industry.
 CITB to recommend what needs to be
done to address this.

Manufacturers/Suppliers/ Distributors
Key objective:
 ensure that the products and materials
arrive on site at the time;
 In the quantities that are required;
 This does not just depend on the
efficiency of the supply network.

 it also relies on the pre-planning of those on
the construction site.
Effective communication amongst:
 those planning the project;
 those supplying the products;
 those supplying materials.
 Manufacturers and suppliers can make a
significant contribution to the efficiency.

Manufactures involvement:
 It will help if they are involved early enough in
the process.
 If they can make an input to the Logistics
Plan through the preparation of the Bill of
Materials.
On the transport side:
 There may be an opportunity to look at ways
of developing best practice.

Learning from other industries:
 through the Department for
Transport’s Sustainable Distribution
programme;
 This has not been given any attention
yet.
 Greater transparency of cost in the
construction process.

Therefore:
 The Department for Transport’s
Sustainable Distribution programme
include work on transport in the
construction industry.
 Key manufacturers
 Suppliers

 Distributors input to the Bill of
Materials being prepared as part of
the Logistics Plan for each project.
 Distributors reflect the cost of
distribution in their pricing policies.

 distributors work with contractors
 See how lessons from the
Consolidation Centre approach
might be transferred to other
significant construction projects
and programmes.

Information Technology
 The use of electronic communications as
effectively as other industries.
 This will to help in improve logistics
throughout the supply chain.
 The industry IS not utilising bar coding for
product ordering.
 E-tagging for tracing products throughout
the process.
 To the extent that seemed appropriate.

061 logistics and productivity

061 logistics and productivity

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