According to Juran, for the average American manufacturer, the costs of not quality in some cases come to represent 30% of the sales price. For the builder or client company, a non compliance of contract causes delays in the delivery date, affecting site operations, these delays can generate additional costs not covered: costs of Labor, equipment and penalties if it affect start up of the project. In Peru, in national projects, 75% of projects had delays of up to 60 days. In this situation, Supplier Management should be an alternative that allows early identification of a delay in delivery date, decline in the quality requirements, the possibility to capture information relevant to decision-making, in order to prevent and mitigate its effects on the project progress.

1. SUPPLIER MANAGEMENT
A TOOL TO PREVENT THE DELAY AND NON-
COMPLIANCE WITH CONTRACTUAL
REQUIREMENTS IN HEAVY & MEDIUM
CONSTRUCTION PROJECT
QUALITY CULTURE SAC
Management to continuous improvement

2. Background
• Capital projects are capitalized investment in time. (T = $)
• Projects with overlapping activities (fast-track), and
construction requirements JIT (Just in Time)
• A delay in the previous activities have a multiplifier effect
in time and project's costs.
Id Nombre de tarea Duración
1 Adquisición de emplazamiento 30 días
2 Obra civil 20 días
3 Instalación 5 días
4 Configuración 2 días
5 Pruebas 2 días
11/04 11/11 11/18 11/25 12/02 12/09 12/16 12/23 12/30 01/06 01/13 01/20 01/27
iembre diciembre enero f

3. Background
• The construction are exposed to no meet the deadline.
These indice reach almost 75%
• 45% of this delay are due to management problems.
• According to Jurans, for american suppliers, the costs of
no Quality reach in some cases 30% of sales price.
• No investigation studies in supply management , in our
country.

4. Problem
• In Project Management is unavoidable to have new
suppliers that allow us to outsource new activities.
• The poor training in management of manufacturing
companies produce 80% of the errors.
• Culture of "don't report errors" within providers.
• Culture of unpunctuality: Little commitment to meeting
deadlines of manufacturing startups.

5. Three Cause - Effect
DELAYS FOR NON-
CUMPLIANCE OF
CONTRACT
REQUIREMENTS
Poor Evaluation of Supplier
Poor Quality Control
Poor Project Management
QMS No implemented
Poor Production Capacity
QMS No Executed
Personal without Competence
Supplier's PM without experience
Derating Capacity by lack of attention
Unknow of Quality Requirements
Desynchronized Administrative
Processes
Poor Finantial Capacity

6. Supplier Management Services seeks to minimize or
better yet avoid the consequences caused by :
• Delays in delivery date or promised date .
• Fail in compliance with contractual requirements, and
• Failure to meet changes or modifications to the
purchase order.
• Additional costs not covered: for claims (MO and
paralyzed Resources & others in site).
• Saving by penalties of opportunity cost for delays of
PROJECT start up.
Objetives

7. Objetives
General Objetive:
Analyze the management of metalworking, electrics, and
civil suppliers, so that would prevent cost overruns by a
delay and compliance with contractual specifications.
Specific Objetives
• Relation of supplier management with the delay or non-
delivery.
• Relation of supplier management with the fulfill of
contractual specifications.

8. IMPORTANCE
8
The benefits of this research are for both companies
Operators and suppliers, since this proposal is made
to increase the competitiveness of both
• For supplier improve the management, quality and
delivery time with consequent savings and economic
benefit, and
• For construction consolidating of its
supply chain and reducing the risks
inherent to sub-contracting or
purchasing equipment.

9. IMPORTANCE
9
The benefits of this research are for both companies
Operators and metalworking suppliers, since this
proposal is made to increase the competitiveness of
both
• Logistic
• Quality, &
• Sub-Contract management

10. Supplier Management
We make available this work Supplier Management that
will allow:
• Contro & Meet real delivery time
• Anticipate the consequences of non-compliance with
contractual requirements and take steps in advance.
• Anticipated construction cost overruns for claims.
• Establish Supplier Management indicators in their
contracts.

11. Supplier Management
We make available this Supplier Management Services which breaks
down into:
• Supplier Evaluation
• Quality Assurance
• Shop Expediting (Activation)
For more information contact us:
Quality & Projects Management
Eng. Jorge Hugo Torres F.
Celular: (+51) 996.796.776
jorge.torres@qualityculture.pe