INTERGRATING SCM WITH FEM & LEAN CONSTRUCTION

1. helpdesk@construction-productivity.co.uk
htt://www.construction-productivity.co.uk

3. Supply chain management (SCM)
is a concept that has originated
from the supply system.
Toyota adopted the system to
coordinate its supplies, and
manage its suppliers.

4.  It also describes the connection between
companies that change basic materials,
products or services into a finished
product for the client.
 The client, main contractor, designer,
surveyor, sub-contractor are all part of the
supply chain.

5.  Modern procurement methods, unlike
the old procurement methods,
suggest and encourages all
participants to adopt Supply Chain
Management policy.
 As a result the emergence of PPC
2000, TPC2005,..

6.  All participants in the supply chain have a
long-term objective to work together to
deliver a product free from defect,
completed on time with minimum cost.
 This close working relationships will
improve the construction industries’
productivity both nationally and
internationally.

8. The benefits for all participants in the
supply chain management can be
summarised as:
 Costs reduction
 No cost overrun
 Waste minimization
 High quality product

9.  Defect free product
 Full end user’s satisfaction
 User friendly products
 Continuous improvement
 Higher reliability between supply
chain

10. The front-end of a project is defined as:
 The period from an idea is conceived to the final
decision to finance the project is made.
 Front-end Planning is an important process in the
building project life cycle.
Known in architecture terms as;
 programming
 schematic design
 design development

11. The purpose of front-end management is
to:
 produce a complete and reliable project
concepts for evaluation before a final
decision is made by the client to proceed
with the project.
 After final decision to finance the project is
made.
 It is followed by the detailed planning
phase.

12.  Most companies admit that they do not carry out
front -end planning.
 Often small companies do not know about front-
end Planning.
 It is required for every building project.
 Research has shown that efforts in the detailed
planning phase pay back in the implementation
phase of projects.
 The largest financial gains are represented by
activities in the front-end phase.

13.  Efforts made in the detailed planning
phase would save:
 labour
 machinery
 materials in the implementation
phase of projects.
 It puts the company in a better and
stronger position in today’s
competitive market.

14.  The uncertainty is at its highest and the
cost of changes at its lowest in the front-
end phase.
 Uncertainty affecting a project start to
fade during construction phase.
 Once the client and management team
have committed themselves to the project,

15. Challenges in Front-End Management
of
Projects
 Any decision made during concept
phase are the ones with greatest
impact on the final project results.
 All the project conditions are set up in
the concept phase.

16. Key Issues in Front-End Management of
Projects
1. A front-end assessment always starts
gathering of relevant information.
2. The knowledge gained from earlier projects
are valuable.
3. Often this knowledge is not stored in a right
place.
4. The method of communication to collect the
information is also very important.

18.  Lean construction main objective is
to maximizes value and reduces
waste.
 It applies specific techniques in an
innovative project delivery approach.
 including:
1. supply chain management,
2. Just-In-Time techniques.

20.  As well as the open sharing of
information between all the parties
involved in the production process.
 Lean manufacturing is an outgrowth
of the Toyota Production system.
 Developed by Taichii Ohno in Toyota
in the 1950s.

21.  It is based on lean manufacturing,
of the Toyota Production system.
 developed by Taichii Ohno in the 1950s.
 Ohno learnt from mass production at Ford
Motor manufacturing facilities in the U.S.
and witnessed high level of waste during
production.

22. Ohno identified several wastes
in mass production systems
in car industry such as:
1. overproducing
2. waiting time
3. transporting

23. also, in other areas such as:
1. processing methods;
2. unnecessary stock on hand;
3. unnecessary motion;
4. defective goods;
5. failure to meet customers’ needs;
6. high waste through out the process.

24.  Womack and Jones (1996) suggested that there
are five key principles that need to be monitored
when lean construction systems are applied in
construction. Those are:
 Value-clarifying the customer’s needs;
 the supply chain involvement in all stages, from
inception to completion;
 By clarifying activities or products
that signify value.

25. Value stream: By mapping the
whole value stream
 establishing cooperation between all
parties involved;
 identifying and eliminating waste;
 From taking such steps the
construction process can be
improved.

26. Flow:
 Business flow includes project information
such as:
1. specifications
2. contracts
3. plans, etc.
 Job site flow involves the activities and the
way they have to be carried out.
 Supply flow refers to the materials used in
a project.

27. Pull:
 The efforts of all participants provides
smooth pulls during the construction
process.
Perfection:
 Use of best methods of work instructions
and best procedures.
 Introduction of best quality control
methods.