Dynamics model of the flow management of

construction projects: study of caseSandra Cano and Oscar Rubiano

Introduction

This research reviews the issues associated with the obstruction of the workflow in the management of infrastructure construction projects in a public university in Colombia.

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Case study

The case study is about the production process of construction projects planned for a year in a public university• The university plans investment in infrastructure for each fiscal year according to

a strategic plan.

• Financing for these projects is from the collection of a specific tax of Regional Government (RG) order, and it's transferred monthly to the university.

• The contracting of the construction is carried out when the financial resource has been transferred, and it has been confirmed the construction project has the highest level of constructability possible.

• After contracting, the construction of the project is carried out.

• Construction production process originate relations and flows into functional areas in the organization

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Case study: Problem map

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Planned Change in Cost

VCP = CF / CPI

Evaluation of Policies in the

Management of Construction

Projects

Defining Parameters Scenarios

System Performance

Indicators

Total Time IP Projects

TE = TR / TP

Efficiency Implementation

EP = PE / PI

Finished Projects on Annuity

PP = TRA / PI

Maturation of Construction Projects

Administrative Processes

Availability of Investment

Resources in IP

System Dynamics

• The fundamental objective of Systems Dynamics is to understand the structural causes that cause the behavior of the system.

• Understanding the structural causes implies increasing knowledge about each element of the system's role, and seeing how different actions, carried out on parts of the system, accentuate or attenuate the behavioral trends implicit in it.

• System Dynamics finds its main applications in these complex and poorly defined environments, where human decisions are usually guided by logic intervene.

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Lean principles and the mapping of the value streamThe five lean principles described by Jones and Womack (2002) in the improvement of the efficiency in value flows, they are:

1. To specify the value of the client from the point of view,

2. To identify the flow of value, including the activities that add value or do not add value for the client,

3. Allow that the project flows quickly without problems and through all the sub-processes,

4. To synchronize sub-processes capacity and demand, so that the work is realized in agreement with the scheme of pull production,

5. Reach perfection through continuous value flow improvement.

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Lean principles and the mapping of the value stream

“To identify the flow of value, including the activities that add value or do not add value for the client,”

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Value Stream Mapping

• It is a graphical tool that integrates material and information flows used for the standardized icons in a graph, showing a “Mapping Big Picture” of the value flow.

• Jones and Womack (2002) define the VSM as the process of the map the flow of materials and information.

• This map is used to present the current processed state and after a map of the future state is proposed.

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Mapping with SIPOC Z

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Currrentstate map

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Bank projects IP

4

Review Designs

15 days

5 Profesionals

Maturation

45 days

8 Tecnical and profesional

Contract and legalization

60 days

4 Coordination

Construction

120 days

5 Profesionals

Construction Rededigns

60 days

5 Profesionals

works delivery

15 days

5 Profesionals

correction works

30 days

3 Profesionals

Customer Delivery

5 days

Customers

QC designs

Institutional Planning

Management Construction

General Bank Projects

15 days 45 days

35 days

65 days

10 days

120 days

30 days

30 days

45 days

30 days

15 days

15 days

5 days

30 days

5 days 30 days

TCT 505 days / 5 days/week = 101 weeeks

TCT = 355 days / 5 days/week = 71 weeks

Fisical Planning

Administrative Coordination

Contracting Dicisión

Legal División

Fnancial División

General Secretary

President

Directive Board

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Maturation

30 days

Controlls (Interventoria)

Maintenance Area

5 days

5 days

Causal diagram

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Proyectos

Maduros para

Ejecutar.Proyectos del Plan

Maduros

Tasa de Proyectos

Maduros en el Plan

Proyectos del Plan

Madurados.

Recaudo

Disponible

Recudo de Estampilla

para Infraestructura

Tasa de

Recaudo

Recaudo total

Tiempo de

Maduración

Periodo de

Autorización

Periodo de

Autorización.

Proyectos Maduros

Autorizados

Recaudo Autorizado

para Ejecutar

Total Proyectos

Maduros

Tasa de Proyectos No

Maduros del Plan

AutorizaciónAsignación del

Recaudo

Proyectos Listos

para Contratar

Tiempo Medio de

Ejecución de Obra

Tiempo Medio deContratación yLegalización

Contratación y

Legalización

Proyectos en

Espera de

Ejecución

Proyectos en

ejecución

Proyectos

Terminados

Plan de Inversiones

<Plan de

Inversiones>

Discrepancia enProyectos Pendientes por

ejecutar

Proyectos

Conformes para

Contratar

Proyectos En

Ejecución que

deben ser

Ajustados

Tasa de Proyectos enEjecución que Requieren ser

Ajustados

Tasa de Proyectos sin

Requerimientos de Ajustes

Proyecto Ajustado

en Ejecución

Tiempo Medio de

Ajuste de

MaduraciónTiempo Medio

Ejecución de Ajustes

Proyectos

Ajustados

Total Proyectos

Contratados

Proyectos con

Adición

AprobadaAprobación de

Adición

Tiempo de Aprobación

de Adición

Efectividad

del

Recaudo Total de Recaudo

FaltanteRecaudo No

Ingresado

<Plan de

Inversiones>

<Efectividad del

Recaudo>

<Plan de

Inversiones>

<Efectividad del

Recaudo>

Descuento por

Oferta

Autorización

Financiera

<Time>

Autorización

Semanal

Autorización

Semanal 2

Forrester diagram

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Mature Projects

for AutorizationMature Projects

Rate Mature

Projects

Projects in

Maturation

Money Available

Collection Tax

Collection Rate

Total Money

Maturity Time

Authorization

Time.

Authorization

Period

Autorization Mature

Projects

Money for

Autorization

Total Mature Projects

Rate of immature

Projects

Authorization of Use

of Money

Projects to Contract

Average Time for

Construction

Average Time inContract andLegalization

Contract and

Legalization

Projects in

Waiting for

ConstructionProjects

under

Construction

Completed

Projects

Investment Plan

<Investment Plan>

Projects Pending

by Hiring

Projects Ready to

Contract

Projects underConstruction in Maturity

process

Rate of Construction

Projects to Adjust

Rate of Construction

Projects Without

Adjust

Adjusted

Construction

Projects

Average Time in

Matury Average Time

Maturation

Correct

Projects

Total Projects

Contracted

Total Executed:

Initial Project +

AdditionsTotal finished

with additions

average cost

overrun

Projects

Approved

AddingApproval ofAdditional

Money

Time for Approvalof Additional

MoneyEffectiveness of

CollectionTotal Collection

not AchievedCollection not

Achieved

Projects that are not

buildProjects

without

Money

<Effectiveness of

Collection>

<Money for

Autorization>

<Total Mature

Projects>

<Autorization

Mature Projects>

Waiting Money Next

Year

Projects are

postponed

Waiting Money

Posponed

Rate Postponed

Rate for Projects in

waiting

<Investment Plan>

<Effectiveness of

Collection>

<Investment Plan>

<Effectiveness of

Collection>

Savings in Offer

Completion time All

Projects Investment Plan

TRaccount timeTE

Final Financial

Approval

<Total Money>

<Savings in Offer>

accumulated savings

construction project

balances

balance adjustment

balance

adjustment 2

balance

adjustment 3

<Contract and

Legalization>

<Projects under

Construction>

<Adjusted

Construction Projects>

Overruns Added

Overruns

<Projects under

Construction>

<Total finished with

additions>

<Adjusted

Construction Projects>

Funding to external

sources

Difference between

saving and cost overrun

<Completed

Projects>

Plan Time TP

EP

PP

<Time>

<Investment

Plan>

VCP

<Effectiveness of

Collection> <Investment

Plan>

VCC

<Savings in

Offer>

Weekly

Authorization

Weekly

Autorization 2

Weekly

Autorization 3

Reality Check: Nocollection no Construction

Projects

<Total Money> <Completed

Projects>

<Effectiveness of

Collection>

Current state

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101 Weeks

The simulated improve contains

As you can see in the next table

Factor A: Approval of Investment earlier. The transfer of the collected resources faster.

Factor C: Improve Administrative Processes

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Behavioral of indicators from analysis scenarios

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SCENARIO FACTOR 1/TE PP/0.9120 1/VCPGlobalIndex

LocalImprov

Current Current 0.52 0.12 0.98 0.530 Reference

1 A 0.89 0.78 0.98 0.937 82.5%

2 B 0.54 0.17 1.04 0.610 15.1%

3 C 0.57 0.42 0.98 0.659 24.3%

4 A,B 0.95 0.83 1.04 0.996 87.9%

5 A,C 1.00 1.00 0.98 1.047 97.5%

6 B,C 0.57 0.42 0.98 0.659 24.3%

7 A,B,C 1.04 1.00 1.04 1.084 104.5%

Future state

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52 Weeks

Future state map

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Bank projects IP

2 Profesionals

Contract and legalization

45 days

1 Profesional

Construction

120 days

1 Profesional

Construction Redesigns

5 days

1 Profesional

works delivery

5 days

1 Profesional

Customer Delivery

5 days

Customers

Institutional Planning

Management Construction

General Bank Projects

65 days

10 days

120 days

5 days

5 days

5 days

5 days

5 days

5 days

5 days

1 day

5 days

TCT 236 days / 5 days/week =47.2 weeeks

TCT = 206 days / 5 days/week = 41.2 weeks

Fisical Planning

cell office work

President

Directive Board

1 Profesional

Maturation

5 days

Controlls (Interventoria)

Maintenance Area

Conclusions

The application of Lean tools, for this case, contributes to achieving the economical use of personnel involved in the management process, such as an increase in value-added for customers.

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Conclusions

It validates that the symptoms of problems seen in a value flow should be analyzed with a systematic approach to understanding the root of the problems and their consequences, as well as the effectiveness of improvement actions.

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Conclusions

Lean Thinking has been developed by the manufacturers years with good results, especially when a business culture is consolidated around this thought in institutions like the study, parallel to the intervention of the factors you should build this culture removal waste as a common mission to help streamline the flow in this and other business processes.

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Conclusions

Mapping the value stream is essential to identify underlying structures in the value flow, in addition to activities that add no value, to propose formulating structural measures to expedite the flow of the mainstream, and projects to can fulfill planned targets.

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And that’s all for now I hope you have enjoyed this presentation as I did. If you want to contact me, my email is

sandra.cano@correounivalle.edu.co

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