Page | 1

Contents

Page number Project Planning and Control

3-4 4-6 Work Breakdown Structure Programme Monitoring and Control

Operations Improvement
7 7-8 8-10 11 12 Key Performance Indicators (KPIs) Benchmarking Lean Construction
Total Quality Management and ISO 9000

References

Page | 2

Project Planning and Control Before construction activities can commence the responsibility of the construction management discipline is to carry out a detailed plan of the various construction activities undertaken to enable the successful realisation of the intended facility. Cooke and Williams, (2009) state that: Without planning it is difficult to envisage the successful conclusion of any project or the effective control of time, money or resources . The above statement is quite valid for any project oriented undertaking. As such, the realisation of a major construction undertaking is a highly complex and process-intensive enterprise and therefore requires each activity to be identified, sequenced and implemented in the most productive and efficient manner possible. This will contribute towards efficiency in operations i.e. minimisation of waste, and reduce investment, maximise profits, successful management of time, administer appropriate quality, and ultimately allow the facility to be delivered to the satisfaction of the client. Work Breakdown Structure (WBS) The Association of Project Management (APM) Body of Knowledge (BoK) (2006) suggests that a WBS is: "A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables." Prior to the commencement of construction works and therefore, at the production planning stage, the construction planner may use the Work Breakdown Structure (WBS) to allow sub-division of the major project into smaller manageable sub-projects. Slack, (2007) states that most projects are too complex to be planned and controlled effectively unless they are first broken down into manageable portions. The WBS is decomposed down to the work package level. A work package is the lowest level in the WBS, and is the point at which the cost and schedule for the work can be reliably estimated (Miller, 2002). The detail of the sub-division of the works is determined by the complexity of the work task and the required level of detail required for successfully identifying the tasks of the particular project. However, when deciding how specific to making the work package it is important not to get too detailed otherwise it will lead to micromanagement, which will make it impossible to manage the job as a whole. The following hierarchical tree chart shows an outlined sub-division of construction activities that can be identified by a work breakdown structure (WBS).

Page | 3

Programme Monitoring and Control Once the tasks have been identified and broken down into components, the need then arises to construct a programme of works incorporating each individual work package to determine the sequence of operations, completion time for those tasks, and resource requirements. The programme also allows the construction manager to monitor and measure the existing status of works against set targets and therefore allows for modifications and remedial actions as appropriate. Griffith et al (2000) state that senior management require outline details of the programme, middle management may require a more detailed breakdown of work, whilst operational management will require details of activities on a weekly or day to day basis. However, Frank Harris and Ronald McCaffer (2001) state that a section engineer may require a considerably more detailed breakdown of the general activity and may use day or half day programming time. Construction projects are a risky enterprise. Therefore, one of the methods for reducing risk and uncertainty is to plan construction activities thoroughly. For this reason it becomes paramount that a programme is devised to identify and sequence time and resource requirements for the project and therefore, construction managers may utilise project management tools using deterministic programming solutions such as bar charts and network analysis; particularly the precedence method (activity on the node) (Cooke and Williams 2009). On complex projects, planners may also make use of probabilistic computations such as the Monte Carlo simulation to identify input data for network analysis systems, to determine worst case and a best case duration times for any particular activity (Winch, 2008). Bar charts (Gantt) are the easiest to understand and the most commonly used planning tool and is the default programme for visually presenting the schedule of work where more sophisticated Page | 4

techniques such as critical path analysis are used. The Gantt chart represents a list of activities with the start, duration and finish of each activity shown as a bar plotted to a time scale. The Gantt chart also allows labour and cost details to be monitored and controlled. However, Frank Harris & Ronald McCaffer (2001) identify that the Gantt chart has three signification limitations. Firstly, the sequencing and inter-relationships are not shown, therefore they do not represent a network of activities. Secondly, the Gantt chart cannot show the results of either an early or a late start in the activities. It does not reflect true project status because elements behind schedule do not mean that the project is behind schedule. Finally the Gantt chart does not show the uncertainty involved in performing the activity, therefore questions concerning the minimum or maximum duration of the activity are not represented.

Courtesy of productionplanningandscheduling.blogspot.com Those limitations are addressed using sophisticated scheduling techniques such as the critical path method (CPM) combined with statistical data using the Monte Carlo simulation. The critical path method addresses those deficiencies outlined above and have been used successfully on many complex project situations since its development in the 1950s by DuPont and the US Navy (Winch, 2008). As the case maybe with the Gantt chart, the CPM method also has its limitations. Firstly, CPM is not suitable for first time projects which cannot be broken down into smaller activities with known completion times. Secondly, frustration can set in because it requires too much time to identify all activities and inter-relate them to get multiple paths. Thirdly, the CPM plan can be disrupted in situations where users are relocated across projects and activities (Winch 2008). However the benefits of CPM are that it allows maximum efficiency in the use of time, reduces cost by allowing maximum utilisation of resources, and is beneficial to cash flow.

Page | 5

Courtesy of Bized.co.uk

Page | 6

Operations Improvement In order for operations improvement to be effective, an initial concern of operations management is to identify how well existing operations meet the requirements of delivering the product or service to the satisfaction of the organisation and the customer. Slack (2007) describes how Performance Measurement should be used to measure the performance of the operation in terms of how well operations fulfil the five performance objectives. These objectives are outlined as Speed, Cost, Dependability, Quality, and flexibility. Cooke and Williams (2009) indicate that in order to measure performance, key performance indicators (KPI s) are an effective means to set standards at the start of a project, monitor performance as the project progresses and form a basis for improvement targets for future projects. The government, through its Constructing Excellence program has developed several KPI s to assist project delivery, which have been identified as: Client Satisfaction Defects Safety Time and cost predictability Productivity Profitability

Pilcher (1992) identified that by using KPIs, companies can measure project performance both internally and externally, and thereby establish benchmarks to help organisations achieve best practice standards. Another useful method of measuring operational performance is to compare the operations of the organisation with industry best and/or best practices from other industries. This process is known as Benchmarking. Management identifies the best organisations in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied to one's own results and processes (Boxwell, 1995). Staplehurst (2009) states that the chances are that if someone is able to do what you are doing better, faster and/or cheaper, they have different practices than you have. Discovering what those practices are, adapting them to your situation and adopting them is very likely to improve your performance .

Page | 7

A typical Benchmarking methodology may consist of the following example: 1. Identify your problem areas

2. Identify other industries that have similar processes 3. Identify organisations that are leaders in these areas 4. Survey companies for measures and practices 5. Visit the Best Practice companies to identify leading edge practices 6. Implement new and improved business practice Boxwell (1995) Lean Construction The emphasis of the Lean production philosophy accompanied with just-in-time (JIT) is that its focus is on improving productivity by the elimination of waste and the delivery of products and services only when they are needed. Voss (1987) defines the philosophy as: It provides for the cost effective production and delivery of only the necessary parts at the right quality, at the right time and place, while using a minimum amount of facilities, equipment, materials and human resources. JIT is dependent on the balance between the supplier s flexibility and the user s flexibility. It is accomplished through the application of elements which require total employee involvement and teamwork. A key philosophy of JIT is simplification . Although success has been observed in the manufacturing industry, the philosophy is slightly more difficult to implement without modification to the original concept and would need significant adaptation to suit construction projects. This can be achieved by increasing the use of standardised components, prefabrication, modular systems, and rigorous attention to resource procurement in supply chain networks where best practices are identified and incorporated (Harris and McCaffer 2001). The philosophy can only be implemented successful to a production system if it is supported and followed meticulously by management, employees, and receives cooperation from the supply chain. Materials handling and storage is another issue where lean and JIT can enable significant reductions in waste and contribute towards improving quality. For example, using ready mixed concrete instead of producing on-site can contribute towards reducing waste by freeing up site space that would otherwise be used for the storage of raw material, concrete processing plant and also eliminate the need for carrying out quality control inspection on site and also eliminate the labour required for

Page | 8

production. By using a ready mixed solution, the method could be contributed towards applying JIT principles by ordering supply as and when required. The lean philosophy emphasises that continuous improvements in performance (CIP) or Kaizen in Japanese (Womack et al 1990) need to be considered to contribute towards eliminating waste. CIP is an approach, which assumes small and incremental steps in maintaining improvements in operations (Slack 2007). The development of a continuous improvement process is also a central theme within the TQM philosophy; implemented in line with the ISO 9000 standards. Improvements can be identified and implemented with the use of problem-finding and solving cycles such as the PDCA cycle (Sokovic et al 2010).

http://en.wikipedia.org/wiki/PDCA The PDCA (Plan-Do-Check-Act) cycle examines the existing process and seeks to improve its performance. If after examination the existing process is unsatisfactory then alternative solutions are assessed, implemented and checked to see if improvements have been achieved. Sokovic et al (2010) identified that the PDCA cycle is both effective in doing a job and managing a programme and can enable two types of corrective action: 1) Temporary, 2) Permanent. The table on the following page shows a detailed description of a typical PDCA cycle.

Page | 9

Act Managing Nonconformity Improvement ISO 9001 Certification Cultural and Organizational Aspects Total Quality Management Environmental Management Systems Management System Integration Check An Introduction to Statistics Control Charts Inspection Functional Testing Inspection and Measurement Equipment Metrology Quality Audits and Reviews Quality- and Safety-related Cost Benchmarking

Plan The Quality Concept and Objectives Statutory Considerations Product Liability and Product Safety Training for Quality The Control of Design

Do Procurement Just-in-Time Supplies Process Capability Product Reliability Materials Handling Servicing Service Quality Documentations and Records Controlling Changes Standards, Standardization, Conformity and Compatibility Sokovic (2010)

Whilst the PDCA cycle implies that continuous improvements become a part of every person within the operations framework, it does not take into account the human side of change, resistance and motivation and that many individuals may not be sufficiently competent or the necessary training to contribute towards improvements. However, appropriate training could address this limitation, but contribute towards additional cost.

Page | 10

Total Quality Management (TQM) & ISO 9000 The eight key principles of Total Quality Management (TQM) y y y y Customer Focus Leadership Involvement of people Process approach y y y y Systems approach to management Continuous improvement Factual approach to decision making Mutually beneficial supplier relationship

Quality Management Principles (2001) TQM is a customer focused philosophy, which is the development of a quality system within an organisation that seeks to deliver goods and services by taking a view from the customer s perspective by creating an environment which integrates the entire organisation towards a total approach towards managing and delivering quality (Slack 2007), and therefore its aim is to meeting the expectations of the customer, both internal and external to the organisation (Rumane 2011). TQM requires full cooperation, participation and operational participation of staff and management to implement a suitable strategy for delivering the desired quality expected by the receiving customer. This is where third party assessments using the ISO 9000 Standards have facilitated organisations adopting the total approach towards managing quality by providing a guideline to the way quality should be implemented and continuously improved. However, validation is only effective if the organisation has a clear understanding that significant work is required towards making cultural changes towards achieving and maintaining those standards for the TQM philosophy to be truly effective (March 2009), and must be initiated and supported by upper management to demonstrate a commitment towards the quality management strategy being implemented (Harris and McCaffer 2001) Lam (1997) identified through his study that the most important factors towards achieving success using the ISO 9000 standards in quality management on construction projects were implementation, training, customer focus, communication and alignment of organisational systems . However, Kwok (1997) identified that the implementation of the ISO 9000 standard is time consuming and costly. Particularly in terms of training, employee turnover and updating

documentation , and therefore, may discourage smaller firms from adopting the standard. This view is also supported by (Slack, 2007. p663)

Page | 11

References Association of Project Management (APM) Body of Knowledge (BoK) (2006) Boxwell, R.J. Benchmarking for Competitive Advantage. Robert J Boxwell Jr, New York: McGraw-Hill. (1994) Cooke, P. and Williams, P. Construction Planning, Programming and Control, 3rd edition, WileyBlackwell (2009) Harris, F. and McCaffer, R. Modern Construction Management, 5th edition, Blackwell Science (2001) Kwok, W.I. (1997) A critical evaluation on the implementation of ISO 9000 in the building industry in Hong Kong, MBA Dissertation, The University of Hong Kong, Hong Kong. Lam, L.W.I. (1997) A study of quality practices of ISO 9000 certified companies in Hong Kong and Guang Dong Province, MBA Dissertation, The University of Hong Kong, Hong Kong. March, C. Operations Management for Construction, Taylor & Francis (2009) Miller, D.P. Visual Project Planning & Scheduling, Second Edition (2002) Pilcher, R. Principles of Construction Management, 3rd edition. McGraw Hill (1992) Rumane, A. R. Quality Management in Construction Projects, Taylor & Francis (2011)

Sokovic, M. et al. Quality management - Seminar, Educational material, Faculty of Mechanical Engineering, Ljubljana, Slovenia, 2005 ( Slovenia). Slack, N. et al. Operations Management, fifth edition, Pearson Education Ltd, (2007)
Voss, C.A in Voss, C.A. (edn) Just in time manufacture, IFS/Springer-Verlag. (1987) Winch, G.M. Managing Construction Projects, Blackwell Science (2002) http://en.wikipedia.org/wiki/PDCA

Page | 12