scholarly journals A project-based purchasing portfolio matrix applied to the Australian construction industry

2021 ◽  
Vol 1 (10) ◽  
Author(s):  
Louise Bildsten

AbstractFor a project to be delivered on-time and to an agreed cost in accordance with the specification, it is important to have an appropriate purchasing strategy. A project succeeds due to many factors, one of which is cost alongside timely delivery and quality. Formal purchasing strategies for different purchasing categories are common in the manufacturing industry, but less so in a project-based industry such as construction. The paper argues that purchasing strategies suited to the project-based nature of construction would improve project delivery and other success factors. The purpose of this study is to determine if a matrix could assist companies in the project-based industry to formulating their purchasing strategies. Case studies of five Australian construction companies’ purchasing practises were undertaken to support this work. There is evidence that, to remain competitive, it is necessary for companies to develop a network of well-established relationships with suppliers and subcontractors. Purchasing strategies need to be adapted to each purchasing situation as projects are rarely, if ever, the same. It is necessary, therefore, to adopt an approach that combines the best commercial deal and most effective collaboration.

This study investigated the use of e-Procurement in selected construction firms in Oyo state, Nigeria. The data were derived using a well-structured questionnaire survey involving 104 respondents. Descriptive statistical and correlation analyses were used to analyze the data. Findings show that the use of electronic procurement in the selected construction firms for carrying out procurement function is high with majority of the professionals affirming the use of the system, the four categories of e-Procurement used were e-mail, static websites, web.2.0 technologies and portals that have capabilities of supporting the execution of functions limited to intra and inter firm communication and exchange of project information and data. Consequently, between 84 percent and 76 percent of the respondents used these e-Procurement technologies for communication of information, exchange of bill of quantities, project reports, CAD drawings and project specifications. Consequently, factors with the highest positive impacts on the use of these technologies in the firms were the speed of transactions, lower transaction cost and ease of use. The study implies that the selected construction firms in Oyo state Nigeria predominantly use e-mails and websites to support the execution of pre-award phase of construction procurement. Finding also shows that there is positive relationship between e-Procurement (e-Notifying, e-Exchange, and e-Submission of bid) and Project delivery. The study suggests that to accelerate the rate of uptake of e-Procurement and maximize its benefits in the Nigerian construction industry, there is a need to improve the quality and quantity of ICT infrastructure across the country; and to embark on aggressive enlightenment campaigns, training and skill development programs in the use of e-Procurement in the construction industry in this country.


This chapter begins by describing the common problems associated with implementing IT business strategy that are faced by companies and other organizations, resulting in business planning that is not directly aligned with IT planning and IT investments not clearly supporting business strategies. It is stressed that all organizations should pursue strategic alignment practices to improve organizational performance when using IT-based resources. Case studies specific to the construction industry are presented to illustrate practical problems that companies face. With this background, the critical success factors of implementing IT business strategy are discussed. They mainly center around the goal of enabling businesses to reduce costs while at the same time improve IT’s contribution to their overall performance in terms of overall profit or net earnings. In the discussion, research finding of organizational success in strategic IT and business alignment are used to elaborate on the factors involved, both internal and external to the organization. Overall, the essential traits of successfully aligned organizations are mentioned. This is followed by describing a proposed model that is able to successfully address the alignment of business and IT by adopting a process-driven architecture that focuses on information management. Moving on, there are several aspects of preparing an organization for successful IT business strategy implementation. The next part describes some major steps of implementation like defining the goals and linking them to the performance criterion, focusing on the strategic intentions, adopting an effective plan, quantifying the cost and benefits of IT, measuring and tracking the results, and, last but not least, managing culture. Specifically on the construction industry, the chapter covers the main advantages and disadvantages of adopting IT to increase strategic competitiveness of construction companies. The illustrations from past research focus on links that are established between competitive advantage or project success and the use of technology. As background to proposing a set of recommendations on how IT business strategies can be implemented in design and construction firms, the case of IT adoption in the construction industry of Singapore is presented to serve as an overview of developments in this area. Based on the performance criteria established for these two types of firms in Singapore, appropriate enablers of implementation are suggested, including the kind of business strategy applicable to different firm types, through a process framework. The chapter concludes with a summary of the main points covered on the implementation of IT business strategy in the construction industry.


Author(s):  
Omayma Motaleb ◽  
Mohammed Kishk

The growing rate of delays in project delivery is considered a major criticism of the construction companies in the United Arab Emirates (UAE). This paper aims to investigate the causes and effects behind the delays pertaining to delivery of construction projects in the UAE. The study is exploratory in nature, and incorporates a pilot questionnaire survey and interviews. An extensive literature review indicates potential factors that have possible effects on construction completion delay. The questionnaire forms were sent to 50 construction companies. Thirty-five (70%) completed responses were received. Analysis of the survey data has revealed that about 42 potential causes and effects of delay relate to various groups of stakeholders. The results show the top fifteen factors relate to clients, project managers and finance aspects. It was found that cost and time overruns are the most significant effects. These results are in partial agreement with previous studies. The paper argues that the key determinant in ensuring project control is on-time project delivery. The results of the study can provide moderate support for a suggested hypothesis, through a framework of project success factors. It should be of high concern to knowledge managers in various roles and decision-makers.


Author(s):  
Mohamed Saad Bajjou ◽  
Anas Chafi ◽  
Abdelali En-Nadi

The growing context of globalization permanently increases pressure on the construction companies to improve their performances in order to resist to the constraints of competitiveness in the international market. It has become ineluctable to look for introducing a new alternative capable of bringing creative improvement to the traditional production system. This paper will relate mainly to the most relevant management techniques in the construction industry, and more specifically, the lean construction concept. Initially, we will determine the main characteristics of the construction industry compared to the manufacturing industry according to three levels: on-site production, one of a kind projects, and complexity. Subsequently, we will focus our attention on the main sources of waste in the construction industry. Finally, a rigorous comparative study will be carried out to show the contribution of the lean construction tools in the promotion of traditional construction especially at the level of the following factors: Creating value and eliminating waste; Planning and mutual coordination; Site organization. Lean construction as Last Planner System (LPS), Value Stream Mapping (VSM), Just-in-Time philosophy, Visual management (VM) and 5S have shown a great ability to improve the traditional production system through waste reduction, encouraging people involvement, ensuring a pull flow production, and promotion of a continuous improvement philosophy.


Buildings ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 502
Author(s):  
Ahmed Khouja ◽  
Nadia Lehoux ◽  
Yan Cimon ◽  
Caroline Cloutier

The project-based construction industry finds itself in a paradoxical situation: while it weighs heavily in the world economy, it does have a history of low productivity. One important issue that plagues the industry is related to the challenges that stem from collaborative efforts (or lack thereof) between actors. The objective of this paper is to explore how actors of the construction industry organize their inter-firm relationships while examining the characteristics of such interactions and the elements affecting them (drivers, barriers, facilitators, outcomes). These interactions and elements were uncovered using a systematic literature review. A qualitative content analysis was carried out to categorize these elements and to generate dimensions describing the forms. The 139 articles retrieved depicted 12 relational forms established between construction companies (in descending order of citation): partnering, alliancing, project delivery methods, supply chain integration, joint ventures, integrated project delivery, joint risk management, collaborative design, contingent collaboration, quasi-fixed network, resource sharing, and collaborative planning. A multitude of drivers, barriers, facilitators, and outcomes were found. An analysis of the results led to the conceptualization of a multidimensional profile, which allows for a practical and flexible identification of the relationship form potential partners in the construction sector intend to establish. To provide guidelines for the implementation of this profile, a three-step framework was developed.


Author(s):  
Kim Jensen ◽  
◽  
Kjeld Nielson ◽  
Thomas Brunoe ◽  
Jesper Larsen ◽  
...  

Research demonstrate that productivity in the Danish building and construction industry has only doubled over the last fifty years, whereas the manufacturing industry has increased six times. Utilisation of mass customization as a strategy has achieved results in the manufacturing industry in terms of increasing productivity and competitiveness, so the strategy might have potentials in the building and construction industry as well. However, mass customization as a strategy for improving the productivity of the building and construction industry has not been explored as much as in the manufacturing industry. The purpose of this paper is to analysethe assumptions and possibilities for applying the principles of masscustomisation related to establishing an adaptable integrated system of entities in the value chain of the building and construction industry.The outset of the paper is a literature review concerning the utilisation of mass customization as a strategy in terms of increasing productivity within the building and construction industry. An essential part of the paper is a case study of 11 building and construction companies and an analysis of the conditions for cooperation between the entities in the value chain of the building and construction industry. The paper induces to which extent it makes sense to talk about utilisation of mass customisation by applying the Industry Foundation Classes (IFC) and standardisation initiatives of the construction industry provided by buildingSMART, and at the same time harvesting the benefits of the mass customization.


2017 ◽  
Author(s):  
Behnam Neyestani ◽  
Joseph Berlin P.

Total quality management (TQM) is a management philosophy that emphasizes on non-stop quality improvement within all aspects of the organizations. Its main aims are to satisfy customers and survive in the market. Thus, it is very vital to specify the factors that cause implementing TQM successfully. Specially, the identification of the TQM critical success factors (CSFs) is more important in the construction firms than other industries, because the majority of construction organizations are confusing related to TQM CSFs, and often they do not develop a proper framework with right and essential factors for TQM implementation. Numerous studies showed construction companies usually fail to implement TQM and achieve performance excellence at project and enterprise levels. The main purpose of this study is to determine these factors as critical success factors of TQM implementation in construction industry. For this aim, the study carried out an extensive literature review to specify the most frequently used CSFs from TQM frameworks of 37 empirical studies in different industries, in order to propose a set of appropriate TQM CSFs. So, Pareto analysis was employed to analyze comprehensively the 37 TQM frameworks. Finally, the findings of this study revealed the seven CSFs, which are as most vital elements in developing an effective model for successful TQM implementation in construction industry.


2021 ◽  
Vol 21 (2) ◽  
pp. 218-243
Author(s):  
Manuel Alexander Silverio-Fernández ◽  
Suresh Renukappa ◽  
Subashini Suresh

Purpose The decentralisation of information and high rate of mobile content access in the construction industry provide an ideal scenario for improvement of processes via the implementation of the paradigm of the Internet of Things (IoT). Smart devices are considered as the objects interconnected in the IoT; therefore, they play a fundamental role in the digital transformation of the construction industry. Currently, there is a lack of guidelines regarding the implementation of smart devices for digitalisation in the construction industry. Consequently, this paper aims to provide a set of guidelines for implementing smart devices in the construction industry. Design/methodology/approach An empirical study was performed in the UK and the Dominican Republic (DR). Following a systematic approach, qualitative data collection and analysis was performed based on semi-structured interviews involving professionals from construction companies in the UK and the DR. Interviews were recorded and subsequently transcribed using Microsoft Word and exported to the software NVivo, where the software was used to find common thematic nodes across all interviews. Findings The findings encompass drivers, challenges and critical success factors (CSFs) for implementing smart devices in construction project. For both countries, the top five CSFs were leadership, staff training, culture, technology awareness and cost of implementation. These findings were used to develop a strategic framework for implementing smart devices in construction companies. The framework establishes the actors, elements and actions to be considered by construction companies when implementing smart devices. Originality/value This paper provides a richer insight into the understanding and awareness of implementing smart devices. A strategic framework for implementing smart devices in the construction industry and providing guidelines for adopting smart devices in construction projects was developed and validated. This study provides a better understanding of the key factors to be considered by construction companies when embedding smart devices into their projects.


2020 ◽  
Vol 10 (1) ◽  
pp. 1-10
Author(s):  
Amjad Pirotti ◽  
Abolfazl Keshavarzsaleh ◽  
F. A. Mohd Rahim ◽  
Norhanim Zakaria

AbstractAlthough success is a word that encapsulates a general and wide idea and it is challenging to provide a definite and a consensus definition from all individuals concerned, for many years, there has been a growing interest in identification of the success factors and the relationship with project success. In this research, the main objective investigates the relationship between top management, project mission, personnel, communication and Schedule/Plan and project success in construction industry in Malaysia. A survey was conducted among Managers and Employees of construction companies registered with Construction Industry Development Board (CIDB) of Malaysia and the correlation and regression analysis was carried out in order to test the hypotheses of the study. Key areas are now offered that practitioners and academics should further explore to contribute to the knowledge body on project success and to explore in more details which factors affect project success in construction industry in Malaysia.


2019 ◽  
Vol 9 (1) ◽  
pp. 2-11
Author(s):  
Zahra Kahvandi ◽  
Ehsan Saghatforoush ◽  
Mohammad Mahoud ◽  
Christopher Preece

Abstract The right selection of implementation system for projects in the construction industry is critical to achieve success. Integrated Project Delivery (IPD), is a comprehensive implementation system which has in recent years been seen to play an effective role in projects improved efficiency. Implementing an IPD system to resolve various problems of traditional systems is very important; however there are several barriers to its implementation. In addition, rooting and classifying the barriers is very significant in being able to resolve them. The aim of this study is the identification of barriers to IPD basically extracted from existing case studies. In this research, the meta-synthesis qualitative method is used for identifying and classifying the IPD barriers. The results are presented in a comprehensive table, and then are illustrated as a pattern by using macro concepts. This pattern is useful for presenting barriers to IPD. Identifying the barriers and resolving them are as important as identifying the benefits of IPD in creating motivation for construction industry owners. They also serve to provide the context for required predictions in implementing this approach in the construction industry.


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