2.Organization Background. Operation
Max Profit Constructions having branches at Melbourne, Sydney and Brisbane have been dominating the commercial and Residential fields in Australia. The Company follows traditional methods at all stages of work from procurement to on site Construction. Sub contractors and Suppliers are changing from one project to another and would also be hired from different cities. Many a times, due to Substandard workmanship the project has to be re-worked
2.1 Current/Existing Supply Chain
3.0 Assess Company Operations
3.1 Traditional Procurement Method
MP Construction follows a traditional procurement method in which the client initiates a residential or commercial project by hiring an architect to design
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This provides the advantage of flexibility in construction, but also poses various problems causing non-value adding activities and results in project inefficiency.
Over ordering of material and inventory causes wastage and under ordering might lead to delay in schedule. Once the material is delivered, it takes up a lot of storage space, causing stock piling on the site and also needs to be protected from the weather. A notable amount of work force needs to be employed by MP Constructions to transport the inventory to and from the storage area, generating non-value adding activities. Any small mistake or defect in construction could lead to rework and rectification, thus increasing the project cost.
This type of construction involves a lot of wastage in terms of solid waste as well as labor force, which MP Constructions should be concerned about. Also, it is labor intensive and also entertains the risk of schedule delay due to unpredictable weather conditions. (The Self Build Guide, 2016)
3.5
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This is caused due to adversarial relationship between the company and its subcontractors and suppliers, as discussed in earlier sections, and due to lack of proper communication system along the supply chain. This might cause transfer of wrong information or complete absence of important information causing defects and in turn reworks. Supply of wrong drawings or older revisions of drawings to the site leads to wrong construction, and sometimes, subcontracted work might not match the main design. This causes reworks, rectifications and schedule delays. Miscommunication to the suppliers leads to wrongly delivered materials and misfitting components. In such case, particular activities might be put on hold for the wrong stock to go back and the right stock to be delivered. (Cutting-Decelle A-F, 2007) Hence, MP Constructions must pay attention to the information flow along the supply chain to avoid increase in project cost, schedule delays and in turn customer dissatisfaction.
3.6
Economic- • Weather can cause produce not to flourish, which brings the transportation industry to a slow economy. As well as various season, also construction companies can play a big role in keeping the companies in business. However, for Action the only possible problems will be an issue on muddy sites and winds and all these can be found prior to delivery of your modular this will prevent dry run, which are costly.
In addition, on day 105, the reorder quantity was 13,200. This approach was effective as it increased the number of inventory kits available for production. In total, the company used $2,059,000 to increase its inventory levels. The increased inventory levels and the readjustments of reorder points enabled the factory to increase the number of jobs accepted each day as well as to reduce the number of jobs waiting for kits. In addition, there was a high number of kits queued at station one from day 80 which was accompanied by increased utilization of station one. Besides, we were able to reduce the lead time for all the orders and this enabled the company to increase its revenues.
Cause-and-effect diagrams are charts that identify potential causes for particular quality problems. They are often called fishbone diagrams because they look like the bones of a fish. A general cause-and-effect diagram is shown in Figure . The “head” of the fish is the quality problem, such as damaged zippers on a garment or broken valves on a tire. The diagram is drawn so that the “spine” of the fish connects the “head” to the possible cause of the problem. These causes could be related to the machines, workers, measurement, suppliers, materials, and many other aspects of the production process. Each of these possible causes can then have smaller “bones” that address specific issues that relate to each cause.
Quantifying the performance of Integrated Project Delivery System in contrast with Design Build and Construction Management at Risk
（Wu，2005） It makes the construction become efficient and safety if contractor requested change order generally, and also could make construction quality and surrounding friendliness. （Wu，2005） Without demanding extra costs, the project owner most of time that accepted change order requests（Wu，2005）. There are some situations in the original construction process. Such as the underground conditions , this caused by lacking of construction site investigation by the design department, or further requirements of underground developments or improvement of underground monitoring and sensing, and differing underground condition and seepage when construction excavation. Hsieh(2004)agreed that “Underground conditions tend to be more complicated in the depth range of 2–5 m below ground, and all the more complicated in areas that were previously riverbed”. Otherwise, unsuitable construction methods or the other human mistakes could also result in man-made disasters, which mean on-site work of repairing would cause change designs.
One of the many books I have read about running a construction business and how to perform and create successful financial sheets to make sure your business is doing well is through a book I read this semester called, A Simple Guide to Turning a Profit as a Contractor, by Melanie Hodgdon and Leslie Shiner. Some background about the book is about a man who owns a residential construction remodeling business who is not doing financially well as managing and keeping track of the jobs with old school techniques that making him lose money on jobs and not know how his business is doing or the projects. The book provides you as the reader and member in the construction industry a great foundation of how to create and run financial sheets to make sure
To get a better understanding of project management we will look into a few templates and tools. Because construction projects are so common to the average person, I believe this would be a good industry to use to explain how this templates and tools relate to project management. We will take you the five phases of building a house or any other typical construction project. These ...
Most projects, whether big or small, are undertaken either to create a new structure, such as a plant, an airport, an Olympic stadium, a bridge, a new product, etc., or to modify an existing structure, such as a plant expansion, adding a new production line, expanding a highway, etc. In most cases, the late completion of the project, such as finishing the Olympic stadium two weeks after the opening of the Olympics, or having a new airports' opening delayed until after the elections, etc., generally carries with it some significant negative ramifications for the project owner. At the same time, there are many cases where the early completion of the project will provide the project owner with significant positive ramifications, such as the market share gained by preempting the competitions' launching of a new product, or the increase in sales achieved by bringing the plants productive capabilities on-line sooner, etc.
One problem anyone is going to have in just about any industry is the amount of inventory to keep at warehouses. If there is too much inventory, then high costs will become a problem and hurt your bottom line. At the other end, if you try to save too much money by keeping inventories dangerously low, it may create stock-outs. These can infuriate your clients
Vrijhoef, R. and Koskela, L. (2004) ‘The four roles of supply chain management in construction’, European Journal of Purchasing & Supply Management, 6(3-4), pp. 169-178 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 6 February 2010).
... private construction projects. Every project in construction needs to take in consideration the existing property owners that surrounds the area where the construction project will be execute, every business, institutions, and residences owner that are located adjacent to the constructed facility need to be take in consideration while analyzing the stakeholders requirements as they become persons of interest in the project. (Bob Muir, 2009)
As mentioned above, this article deals with the common pitfalls supply chain management deals with in terms of information and operational problems. The first problems we see are based on communication between sites. The pitfalls that communication creates are not having a metrics for the supply chain, insufficient knowledge about the meaning of customer service, incorrect information about the delivery method, and not enough information regarding the databases used among companies.
Cost increases are most often out of the control of the affected firm. These increases are often caused by external factors relating economies and currency exchange changes. This is particularly true concerning fuel. Supplier relationships and negotiations that sour are often caused due to the rush and stress of acquiring materials; this results in rush decisions and brash attitudes that negatively affect the relationship. Pressure from senior management can also put undue rush on negotiations resulting in a less than favourable outcome.
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
...ther or mechanical or even customs delay. Customers were upset of these issues when they were expected to have on-time delivery of their shipments.