CASE STUDY :APPLICATION OF PROJECT SCHEDULING

SYSTEM FOR CONSTRUCTION

SUPPLY CHAIN MANAGEMENT

Presented by Yulhendri Saputra & Marcel Bernadi

Introduction

Problem Issues

Environmental Scanning

Alternatives Course of Actions

Key Success Factors

Selection of Best Alternatives

Recommendation

INTRODUCTIONThe paper will discuss the AEC industry : AEC (Architecture, Engineering, Construction) Inefficiencies in the AEC industry lead to unreliable project due dates, inability to

meet project budgets, and low customer satisfaction levels

Case Study : Large retailer involved in the house reconstruction market. The retailer is attempting to change its bussines process, manage their supply chain,

and manage their orders that have products and services as projects. The case will describe the difficulties involved in changing the business process and

data collection and provide insight into issues involved in implementing the objectives of the retailer.

PROBLEM ISSUES

Multiple attempts by contractors to schedule services with customers Job charges from vendor to retailer is higher than it has to be to account for wasted

resource utilization Project due dates are difficult to quote to customer Lack of proactive communication with customers and vendors in case of delays,

leading to dissatisfied customers and vendors.

ENVIRONMENTAL SCANNING In their current business, the retailer is involved in selling thousands of home

improvement products. Starting from a simple carpet installation to a whole house redesign including kitchen, bath, and flooring remodeling, the retailer historically is in the business of selling products.

Selling value added services on top of that has been done through contractual relationships with relevant trade contractors or service vendors.

They have existing relationships with contractors that provide measure, deliver, and installation services.

But all collaboration is through phone or fax. There are dedicated employees that handle the collaboration in the case of complex projects acting as project superintendents

ALTERNATIVE COURSE OF ACTION Customer orders product and system gives customer measure schedule date based on

measurer capacity Measurer does measure and updates order with results Store closes sale and places order for product Product vendor responds with promise dates Product arrival triggers installer notification and scheduling of the install job. Installer completes job and that triggers order to be complete

ALTERNATIVE COURSE OF ACTION

ALTERNATIVE COURSE OF ACTION

ALTERNATIVE COURSE OF ACTION Vendor and contractor partnershipsThis is a formal business relationship that is established to facilitate the mutual pursuit and achievement of common business objectives. The partnership relationship is used for vendors and contractors having frequent and close business alignment with the relevant organization. The vendor or contractor is often an active and visible participant on the project team and has a vested interest in achieving overall project objectives.

Vendor and contractor affiliationsThis is a formal business relationship that is established to enable prequalified vendors and contractors to be identified and positioned for use on projects as their products and services are required. This type of relationship is used to prepare for anticipated vendor and contractor needs across multiple projects.

ALTERNATIVE COURSE OF ACTION Project-specific relationshipsThis is a formal business relationship that is established to obtain vendor and contractor participation in one or more specific projects. It represents the need to solicit and qualify vendors and contractors for selection, and then to prepare a separate contract or agreement for their participation in each project.Service provider relationshipsThis is a business relationship that may be formally or informally established but it does not necessarily warrant a formal contract or agreement. Instead, it represents some level of prequalification and selection of service providers, perhaps by establishing a recognized business account with each provider.Supplier relationships : This is a business relationship similar to that of the service provider but it deals with prequalification and selection of sources of products, supplies, and equipment needed to accomplish the project effort.

ALTERNATIVE COURSE OF ACTION Verify vendor or contractor contract booking Organize vendor/contractor contract files Establish procedures for contract claims and dispute resolution Establish procedures to solve issues and problems Establish communication guidance Monitor vendor and contractor performance Manage vendor and contractor relations Conduct meetings with vendor and contractor representatives Manage vendor and contractor contract changes Monitor vendor and contractor contract compliance Manage acceptance of vendor and contractor deliverables Manage vendor and contractor payments Review and close out vendor or contractor contract Manage vendor and contractor resource departures Prepare a post-project vendor or contractor performance report

KEY SUCCESS FACTOR Manage Vendor and Contractor Information Prescribe Vendor and Contractor Participation Prepare Vendor and Contractor Contracts Solicit Vendor and Contractor Proposals Identify and Qualify Vendors and Contractors

SELECTION OF BEST ALTERNATIVES Establish communication guidance : Fulfillment of qualifications for vendor or contractor technical, team members Development and presentation of required technical plans, designs, and solutions for

timely review

Manage vendor and contractor relations : Vendor/contractor collaboration — needs, requirements, and Technical specifications Vendor and contractor project planning and technical solution Development

Prepare a post-project vendor or contractor performance report

Monitor vendor and contractor contract compliance

RECOMMENDATIONCONCLUSION For service vendors, payment is aligned with job completion and since system tracks job status to trigger payment, workflow is more streamlined;No wasted trips to customer site since system ensures coordination;No wasted trips by installer to store to see if product has been arrived;Better utilization of resources, higher efficiency for all parties;For customers, painless experience, easier to follow status of order/project;For retailer, better accountability, more satisfied customers, more business for the retailer.

RECOMMENDEDManages in supply chain to streamline information flow and managing capacity of contract labor to remove inefficiency requires changes in business process and sharing information across enterprises. From the case the solution come more efficient and less of the supply chain process. Retailer, even vendors can get a clear process and data from work flow.

THANK YOU

Question :

1. If we consider fast indonesian speed train project, please consider the use of PERT CPM ? What will be the best time schedule to finish it ?

2. If we agree with the goverment project on sustainability (nasional ketahanan pangan) national food sustainability program, please use the strategic analysis combine with project management, know how and come out with suggestion to successful implementation ? Please disccuss it with group