Assignment 2 by Mike 18.06.10 (Final)

8/8/2019 Assignment 2 by Mike 18.06.10 (Final)

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Assignment 2

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1.0 INTRODUCTION

This research looks at the service delivery operation of a Mechanical & Electrical (M&E)

Consultant company. A study is conducted on the roles and responsibilities of the company, and

the specific needs of clients for services in terms of the five performance objectives that consist

of Quality, Speed, Dependability, Flexibility and Cost.

The research is conducted at Noble Existence Sdn. Bhd. (NE), a Malaysian company, which

have an office in Malaysia whereby daily operations are conducted. The company has about 12

workers that comprise of the Bosses, Engineers, Designers, Drafters, Financialist and

Receptionist. There are two bosses, one Electrical base, and the other, mechanical base whose

jobs includes jobs lobbying to acquire projects from clients, management and supervision on all

projects and looking after the companys welfare as a whole. Engineers comprise of senior

engineers and junior engineers (fresh graduates) that will be assigned projects to be handled,

monitored and report directly to the bosses. The Designers will produce an overall design of

M&E services drawings based on the input and calculations from the engineers while the drafters

will complete the drawings. The financialist handles and monitors all company expenditures,

services collection and keeps the bosses informed on the companys financial situation at all

times. The Receptionist as the name implies handles all matters of reception in the office and

odds and ends that is needed to be done. The companys hierarchy is shown in Figure 1:

Company Hierarchy.

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Figure 1: Company Hierarchy

In Noble Existence, all operations are guided with the companys Standard Operating Procedure

(SOP)(refer to Appendix 1), this is to ensure that all things are done accordingly to avoid

overlooking or bypassing of procedures that will affect the overall outcome of a project. The

standard operating procedure will be revised from time to time to cater for the new requirements

by the local authority. Since the company is operated on project basis, it is applied to all projects

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2.0 Standard Operating Procedures of Noble Existence

The purpose of this study is to examine the operating procedures of the company in detailed and

to understand it clearly so alteration can be implemented to further improve it in terms of the five

performances objectives. The study take place in the project implementation area, after careful

analysis it is summarize into 8 stages or events that demands activities from parties involved

(Refer to Appendix 1)

2.1 Stage 1: Land Use - Conversion, Subdivision, Amalgamation

At the beginning, the Land Surveyor has the primary responsibility for all land matters in

accordance with the National Land Code (NLC). The duration of this event is quite subjective

and unknown to Noble Existence since most of the time they are invited into discussion after the

fact. NE has no deliverables on this matter but will not be able to proceed to the next stage if the

land issue is not sorted out.

In terms of the performance objectives, the speed criteria play a major part in this process. Theland surveyor will need to get legal issues pertaining to the land use organized and sorted out as

their actions might delay the project from starting off.

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2.2 Stage 2: Layout Plan Approval or Development Order

At Stage 2, NE will be involved in determining the employers requirements and assisting the

Layout Planner in finalizing the layout before submission for to the local authorities for

approval. NE is required to provide Preliminary Engineering Brief that covers the Load

assessment, Communication assessment, Substation requirements, Tenaga National Berhad

(TNB) reserves and Exchange requirements. The process here is tedious as NE has to liaise with

the local authorities such as Electricity service provider TNB, Telephone service provider

Telekom Malaysia Berhad (TMB), Fire Fighting Authority BOMBA, and Water services

provider SYABAS for the latest requirement. The confirmatory notes of all discussions and

meetings with authorities and utility providers will then be recorded, leading to the issuance oftechnical support letters from local authorities and the state planner.

In terms of the performance objectives, the Quality factor is often demanded by the client. As a

M&E consultant, it is NEs job to provide correct calculations and design with no oblivious

errors in this preliminary stage. This will reflect in the core competencies of NE, doing a good

job here will leave a good impression for the clients who in turn provide greater opportunities to

acquire jobs in the future. The flexibility criteria are also vital here as the initial phase of design

is subject to comments and approval of the local authorities. It is important to provide at least

two or more alternatives if the first submission is rejected to avoid complications. NE is also

advised to be proactive in this matter to solve the problem as soon as possible as it will show on

the Dependability factor. Deadlines promised to the client must be fulfilled without delaying

whenever is possible. Ineffective use of time here will result into more unwanted cost; clients

want their delivery exactly as planned. In the consultancy business, there are no second chances

if the said consultant failed to perform his duties on time.

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By using the American Society of Mechanical Engineers (ASME) flow process symbols, the

Flow Process Chart for this stage is shown in Figure 2: Stage 2 Flow Process Chart.

Figure 2: Stage 2 Flow Process Chart

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2.3 Stage 3: Infrastructure Plan Approval

At Stage 3, discussions and meetings are carried out with the infrastructure engineers with the

intention to acquire the Infrastructure Plan approval. NEs roles here are to design Street

Lighting and Telephone service infrastructure and Electrical Reticulation for the project. The

whole phase starting from the initial design stage to the Tender Documentation stage are

monitored, under constant review and discussed with the client/developer to keep them informed

on the availability of power supply and telephone lines for development. Preparation of all

submission drawings, engineering calculations, cost plan, tender drawings and specifications are

done here and the final product is a detailed Infra Tender Document. This process will take

around 2-3 months depending on the cooperation from the local authorities and the demands

from the developer themselves.

In terms of the performance objectives, Speed is more important here as the client will request

the authorities submission to be pushed in as soon as possible to prevent delays. It is a known

fact that the most local authorities tend to take their own sweet time in commenting and

approving drawings submitted by consultants. Frequent follow-up by the consultants to acquire

the technical approval is advised. The Quality criteria must too be fulfilled here since any

mistake done by the consultant will result in rejection by the local authorities. However, the

quality issue here often subject to the local authorities perspectives. For good or ill, the local

authority will often impose new requirements that incur additional cost. Most people will just

comply with the new requirements without objection but the cost implication is not favored by

the client. In this matter, it is the consultants responsibility to justify his design and explained to

the local authorities or seeks proper clarification from them before submitting to the required

change. The quality of a consultant is also dependent on his ability to question, analyze and make

good decisions..

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The stage 3 flow process chart is shown in Figure 3.


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2.4 Stage 4: Building Plan Approval

At Stage 4, both the Architects and Engineers have the primary responsibility to submit to all

technical departments required for Building Plan (BP) approval and to follow up for approval.

Similar to Stage 3, the process includes all the necessary engineering calculations to support

submission and calculations of submission fees and early notification to the Employer for

payment.

In terms of the performance objectives, it emphasize on both the Speed and Quality criteria

similar to those mentioned in stage 3. The issue at hand is exactly the same with the addition of

request payment from the client. Printing charges, documents preparation and couriers requires

reimbursement from the client. Most of the time, this cost will be overlooked and the client will

conveniently forget about such matter. It is a consultants role to submit an early notification to

the employer to remind them to pay for NEs services.



2.5 Stage 5: Building/Infrastructure M&E Design

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In this stage, NE is required to give an M&E Design Brief complete with report on all M&E

concept and detailed design. Client & Consultant Meeting (CCM) among Architects and

Engineers are held together with the Client in a weekly basis for design coordination, budgetary

costing (value engineering), buidability issue, quality assurance that is subject to client and end

user judgement and sharing of experience to solve problems. Drawings are issued for review and

approval to all relevant parties, most importantly to obtain the employers signoff. By now, all

M&E drawings shall be finalize and to be submitted to authorities for approval. The full tender

document for both infrastructure and building plan shall be prepared and carry on to the next

project stage.

In terms of the performance objectives, Cost is often been criticized here with the universal

perception of Cheap and Good which is always the attractive objective to the client. In the

M&E consultant industry, it is known as minimal budgetary costing also known as Value

Engineering. The term Value Engineering is often subject to discussion even among

engineers as the Quality criteria are also within its boundary of influence. Different engineers

will have different designs and different ways of looking at things; some will imply that cheap

design will offer lower quality products compared to a higher invested project, provided with

sufficient analysis and reports. However, some engineers will come out with a different design

using similar cost to produce supposedly better quality products to convince the client. In this

case, the safety factor comes into play. In all engineering design, safety can never be

compromised, as a rule of thumb safety is the most important criteria on top of both quality and

cost. If the design incurs lower Cost with average Quality and is technically sound, it is the job of

the consultant to convince the client to accept his work. High Quality in this stage will produce

fewer mistakes made by the processes in the operation, this in turn minimize cost and time to

correct mistakes and will have less irritation and confusion in the later stages.


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2.6 Stage 6: Tender

In Stage 6 the tender stage, NE will be assigned to call tender for infrastructure works as contract

administrator. NE is also required to assist the Architect or Quantity Surveyor (QS) to call tender

for building parcels. This consist of inviting eligible and pre-qualified tenderers and giving them

instructions and details complete with tender drawings and specifications for their reference and

perusal. The tenderers will provide all necessary documents required for NE to prepare an

overall evaluation report for the client. Sessions of Tender openings with the Architect or QS and

Tender Clarification with the tenderers are held to shortlist the competitive ones. Before

awarding the project contract to the successful tenderer whereby Letter of Acceptance (LA) is

given, the tendered rates are rationalized.

In terms of the performance objectives, Speed and Flexibility is preferred by the client here. The

shorter elapsed time between the client requesting tender evaluation report and then receive them

from the consultant the better. On top of that, given the fast evaluation report prepared by the

consultant, the services will be accepted easier, thus strengthening Flexibility.

The Flow Process Chart for this stage is shown in Figure 6: Stage 6 Flow Process Chart.


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2.7 Stage 7: Construction

In Stage 7, NE will issue construction drawings to the relevant parties for construction at site.

Site meetings will be attended by NEs representatives for coordination and discussion of site

issues. Periodic checks will be organized to ensure quality of workmanship and materials as per

specifications and contract requirements. Any site issue will be rectified by the inspection of

engineers and issuance of engineering instructions. Monthly interim claims will be certified by

the engineer in charged until the final claim. The process will go on until Post Construction. The

duration for this stage is range between 12 months to 36 months depending on the size of the

project.

In terms of the performance objectives, Flexibility here will support Cost and maintain

Dependability. During the construction period at a project site, changes to the design will be

made quickly if faced with site issues after exhausting other alternatives. This requires the

consultant to be able to adapt into a changing environment and circumstances quickly and

without disrupting the rest of the operation. For example:

The manhole installed at the site entrance has caused water seeping through the ground that

impede access to the site, the engineer in charged should rectify the problem quickly by issuing

an Engineering Instruction to remove the manhole and thus solving the water leakage problem.

A delayed response by the engineer will ultimately cause disruption at the site and will incur

unnecessary damages. The ability to change over between tasks quickly and without wasting

time and capacity helps in keeping the operation on schedule when unexpected events disrupt the

main operations plans.

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The Flow Process Chart for during the event of issuance of engineering instructions is shown in

Figure 7: Flow Process Chart for Engineering Instructions.

Figure 7: Flow Process Chart for Engineering Instructions

2.8 Stage 8: Post Construction

In the last stage, the project is completed with all necessary documents issued to all parties.

However the contractor is still subject to breach of legal duty with liability for damages if any.

Throughout the whole process, a post-contract review is implemented to identify lessons to be

learnt and mistakes to be avoided in future projects.

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3.0 Recommendations

There are many stages of operating process provided by the Standard Operating Procedures

provided by NE. In this case, most problems occur during the construction stage when sudden

changes to the design are required at short notice. The ability to act fast and effective to solve the

issue at hand will reduce damages caused and reduced overall time delay for the project. Each

project has a fixed amount of time duration as agreed upon awarding of the contract. By the end

of that duration, the completed job site will then be handed over to the purchasers and there are a

lot of parties involved when come to proper documentations. Failing to handover the completed

project site on time will cause a lot of legal issues and both the client and contractor will be

subjected huge fines. So, it is also the responsibility of the consultant engineer in charge of the

project to not cause any delay and ensure the smooth progress of his project site. For NE, the

most likely issue that will occur is the late issuance of Engineering Instruction (EI) that might

cause delay and unwanted cost to the project site. For Example: Figure 8: Detailed Flow Process

Chart for Engineering Instructions when there is a problem at site located far away.

Figure 8: Detailed Flow Process Chart for Engineering Instructions

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hour

3 hour

2 hours

1 hour

1 hour

hour

hour

3

hour

Time required to issue EI = 12

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By studying Figure 8, it takes at least 12 hours for the Engineer to issue an official Engineering

Instruction to solve the problem at hand. This is the fastest time providing there are no external

factors that will influence the process such as heavy rain, miscommunication, engineer on duty is

busy at the moment whereby site inspection is postponed to another day and other factors. The

monthly expenditure to monitor the project site is estimated at RM 2,000 (includes Hotel stay,

travelling allowances, etc). Reference to past projects of NE, there are late issuance of EI of up to

a month because the engineer was unable to visit the site due to the fact that the project site is too

far and miscommunication with the contractors. This has cause major delays to the site and the

client is not content with the situation. To prevent such incident from happening again, the

following alteration to NEs SOP is recommended as shown in Figure 9.

Figure 9: Recommended Flow Process Chart for Engineering Instructions

Based on the above recommendation, a site Resident Engineer is hired to be stationed at site for

close supervision and monitoring purposes. The overall operating processes have been reduced

by two and it only takes at 5 hours for the Engineer to issue an official Engineering Instruction

to solve the problem at hand. The monthly expenditure to monitor the project site is omitted and

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hour

1 hour

2 hours

1 hour

hour

hour

Time required to issue EI =

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can be used to hire the Resident Engineer. Furthermore, any other site issues can be solved right

away by the engineer stationed there. In terms of the key performance objectives, the Speed

criteria have been fulfilled since the action time has reduced from 12 hours to 5 hours. This

speedier process improves the Dependability of the consultant by solving the problem on time

for the contractor. The Cost constraint is kept at a minimal since the damages are rectified in

time. Overall, the recommended changes will bring more benefit than the existing operating

process.

4.0 Conclusion

The research was successful in terms of assessing and further analyzing on how an M&E

consultancy company operates. Given this opportunity to study the internal affairs of Noble

Existence Sdn Bhd with the assistant of both my bosses, I was enlighten in the possibilities of

Operations Management can do to a company. To understand a companys standard operating

procedures and improved it requires vast knowledge in operations management. At this stage, I

found out that there are still a great number of things for me to learn and only through practice

by implementation of such knowledge will further improve me. Analyzing my own company

serves as a stepping stone for me to achieve greater heights. I believe that there are more

alterations can be made to my companys SOP to further enhance its efficiency, it is only a

matter of time.

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Assignment 2 by Mike 18.06.10 (Final)

Documents

Transcript of Assignment 2 by Mike 18.06.10 (Final)