scholarly journals INDONESIAN CONSTRUCTION SUPPLY CHAINS COST STRUCTURE AND FACTORS: A CASE STUDY OF TWO PROJECTS / SĄNAUDŲ STRUKTŪRA IR VEIKSNIAI INDONEZIJOS STATYBŲ TIEKIMO GRANDINĖSE: DVIEJŲ PROJEKTŲ ATVEJO TYRIMAS

2012 ◽  
Vol 18 (2) ◽  
pp. 209-216 ◽  
Author(s):  
Muhamad Abduh ◽  
Biemo W. Soemardi ◽  
Reini D. Wirahadikusumah
Keyword(s):  
Supply Chains ◽  
Construction Projects ◽  
Early Stage ◽  
Selection Process ◽  
Cost Structure ◽  
Construction Company ◽  
Construction Companies ◽  
Material Requirement ◽  
Reducing Costs ◽  
The Cost

Studies of Indonesian construction supply chains have been in the early stage. Previous studies have described very well the structures of construction project supply chains. Moreover, one of strategies that have been considered by construction companies for gaining a competitive advantage is to reduce the cost of their supply chains. The research's objective is to identify the cost structure of construction supply chains in Indonesia and factors that could influence it. By knowing these factors, construction companies are expected to be able to determine strategic efforts needed for reducing cost of their construction supply chains. Two construction projects operated by a large construction company were explored as case-studies. Rebar material was chosen for this supply chains study. It was found that the cost of purchasing was very significant. Meanwhile, costs of transportation and inventory were insignificant. It can be concluded that efforts to reduce supply chains cost by reducing costs of inventory and transportation would not be effective. Therefore, factors that could influence the cost of supply chains are related to management of supply chains, such as procurement policy, material requirement planning, supplier qualification, selection process, contract, and supplier development. Santrauka Ankstesniuose Indonezijos statybų tiekimo grandinių tyrimuose labai gerai apibūdintos statybos projektų tiekimo grandinių struktūros. Be to, viena iš strategijų, kurias statybų įmonės nagrinėjo kaip galimybę įgyti konkurencinį pranašumą, buvo išlaidų mažinimas tiekimo grandinėms. Šiuo tyrimu siekiama nustatyti Indonezijos statybų tiekimo grandinių išlaidų struktūrą ir jai įtaką galinčius daryti veiksnius. Žinodamos tokius veiksnius, statybų įmonės turėtų sugebėti nustatyti, kokios strategijos leistų sumažinti išlaidas statybų tiekimo grandinėms. Atvejui tirti pasirinkti du statybų projektai, kuriuos vykdė stambi statybos įmonė. Šiam tiekimo grandinių tyrimui pasirinkta armatūra. Nustatyta, kad pirkimo kaina buvo labai svarbi, o pristatymo ir inventorizacijos išlaidos svarbiomis nelaikytos. Galima daryti išvadą, kad bandymas apriboti išlaidas tiekimo grandinėms, mažinant inventorizacijos ir pristatymo išlaidas, nebūtų veiksmingas. Taigi išlaidoms, kurios skiriamos tiekimo grandinėms, įtaką galintys daryti veiksniai yra susiję su tiekimo grandinių valdymu: pirkimo politika, medžiagų poreikio planavimu, tiekėjų kvalifikacija, atrankos procesu, sutarties sudarymu ir tiekėjų tobulinimo programa.

scholarly journals Classification of project cost overruns in the construction industry

2019 ◽  
Vol 11 (5) ◽  
Author(s):  
Vitali Chulkov ◽  
Sergey Sinenko ◽  
Mukhammet Fakhratov ◽  
Mohammad Akbari
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Potential Cost ◽  
Management Tools ◽  
Cost Overruns ◽  
Construction Company ◽  
Construction Companies ◽  
Potential Factor ◽  
Potential Factors ◽  
The Cost

Cost overruns vary evidently almost in every construction project, but their magnitude from project to project. The cost overruns have hit down the economy and the reputation of many Construction Company and hit down the economy and the reputation of many construction companies around the world. Many project management tools are designed to manage the project's budget. However, cost management is still considered poor, as there are many cost overruns in the construction industry. Thus, this work is aimed at identifying and clustering potential factors of the excess cost of construction projects in accordance with their original groups using a thematic approach. Basically, through a literature review, all the potential factors that could cause cost overruns were carefully analyzed before they were grouped into seven (7) groups of underlying factors, namely: project, contract, client, contractor consultant, workforce and external. Each potential factor was clearly explained with some examples based on Malaysian case studies to illustrate the cost overruns scenario. These findings may help in the future to focus on how to mitigate critical potential cost-overs to reduce or overcome its impact on all involved stakeholders.

scholarly journals Method of Assessing the Risk of Implementing Railway Investments in Terms of the Cost of Their Implementation

2021 ◽  
Vol 13 (23) ◽  
pp. 13085
Author(s):  
Jan Kowalski ◽  
Mieczysław Połoński ◽  
Marzena Lendo-Siwicka ◽  
Roman Trach ◽  
Grzegorz Wrzesiński
Keyword(s):  
Construction Projects ◽  
Original Method ◽  
Project Managers ◽  
Simple Method ◽  
Construction Companies ◽  
Risk Forecasting ◽  
Specific Object ◽  
Effective Cost ◽  
The Cost ◽  
The Impact

Exceeding the approved budget is often an integral part of the implementation of construction projects, especially those where unforeseen threats may occur. Therefore, each construction investment should contain elements of risk forecasting, mainly in terms of the cost of its implementation. Only a small number of institutions apply effective cost control methods, taking into account the specifics of a given industry. Especially small construction companies that participate in the structure of the implementation of large construction projects as subcontractors. The article presents a method by which it is possible to determine, with certain probability, the final cost of railway construction investments carried out in Poland. The method was based on a reliable database of risk factors published in sources. In this article, the main presumptions of the original method are presented, which take into account the impact of potential, previously recognized, risks specific to railway investments, and enable project managers to relate them to the conditions where the implementation of a specific object is planned. The authors assumed that such a relatively simple method, supported by a suitable computational program, would encourage teams that plan to implement railway projects to use it and increase the credibility of their schedules.

scholarly journals An Effective Approach to Input Variable Selection for Preliminary Cost Estimation of Construction Projects

2019 ◽  
Vol 2019 ◽  
pp. 1-14 ◽  
Author(s):  
Meseret Getnet Meharie ◽  
Zachary C. Abiero Gariy ◽  
Raphael Ngumbau Ndisya Mutuku ◽  
Wubshet Jekale Mengesha
Keyword(s):  
Factor Analysis ◽  
Variable Selection ◽  
Cost Estimation ◽  
Construction Projects ◽  
Early Stage ◽  
Selection Process ◽  
Fuzzy Ahp ◽  
Geometric Mean ◽  
Limited Information ◽  
Input Variables

Accurate cost estimates are vital to the effective realisation of construction projects. Extended knowledge, wide-ranging information, substantial expertise, and continuous improvement are required to attain accurate cost estimation. Cost estimation at the preliminary phase of the project is always a challenge as only limited information is available. Hence, rational selection of input variables for preliminary cost estimation could be imperative. A systematic input variable selection approach for preliminary estimating using an integrated methodology of factor analysis and fuzzy AHP is presented in this paper. First, the factor analysis is used to classify and reduce the input variables and their variable coefficients are determined. Second, fuzzy AHP based on the geometric mean method is employed to determine the weights of input variables in a fuzzy environment where the subjectivity and vagueness are handled with natural language expressions parameterized by triangular fuzzy numbers. Then, the input variables are suggested to be selected starting with those having high coefficient and high importance weight. A set of three variables, one from each group, can be added to the estimating model at a time so that the problem of collinearity can vanish and good accuracy of the estimate can be ensured. The proposed approach enables cost estimators to better understand the complete input variable selection process at the early stage of project development and provide a more accurate, rational, and systematic decision support tool.

A study on how to improve the throughput time of Lean Six Sigma projects in a construction company

2014 ◽  
Vol 5 (2) ◽  
pp. 212-226 ◽  
Author(s):  
Aat van den Bos ◽  
Benjamin Kemper ◽  
Vincent de Waal
Keyword(s):  
Six Sigma ◽  
Selection Process ◽  
Lean Six Sigma ◽  
Throughput Time ◽  
Content Type ◽  
Construction Company ◽  
Construction Companies ◽  
Project Completion ◽  
Depth Analysis ◽  
Improvement Programs

Purpose – The purpose of this paper is to study the use of the Lean Six Sigma (LSS) methodology in a construction company. Design/methodology/approach – In our study we analyze 62 LSS improvement projects carried out within a Dutch company. In our analysis we focus on both speed, in terms of throughput time (THT), and impact, in terms of project completion, of each project. Findings – From the analysis we conclude that the current THT of a project is about a year and we identify important factors that cause large project's THTs These factors are then translated into recommendations for an efficient execution of LSS improvement projects. Research limitations/implications – The analysis is based on a sample from one company of the Dutch construction industry. The scope should be broadened as more companies adopt quality and process improvement programs, such as LSS. Originality/value – The narrowed scope, only one company and focused mostly on the speed of projects, helped to do an in-depth analysis. Therefore, we are able to present concrete and useful recommendations that relate to practical issues in the execution of improvement projects. These recommendations offer a checklist for construction companies in the project selection process, in situations of starting or improving an LSS program

scholarly journals Estimation of cost overrun in construction projects using Fuzzy Logic

2021 ◽  
Vol 23 (05) ◽  
pp. 797-805
Author(s):  
Neelakash Haloi ◽  
◽  
Tapas Goyal ◽  
Faizan Zahoor ◽  
Harsh Jain ◽  
...  
Keyword(s):  
Fuzzy Logic ◽  
Construction Projects ◽  
Cost Overrun ◽  
Time Data ◽  
Construction Companies ◽  
Five Factors ◽  
Spss Software ◽  
The Cost ◽  
The Impact ◽  
Published Research

In recent years, the impact of the construction industry on the economy of India is increasing. However, there are a number of problems that are being faced by the construction companies or contractors or other relevant stakeholders, in the completion of a construction project. One of the major problems being faced is time and cost overrun. Thus, it is important to find ways of mitigating this critical problem. One of the solutions that is being used is the prediction of the amount and time that a project might overrun beforehand i.e. estimating the overrun during the design phase itself. This prediction can be done using a number of different techniques, the important one of which used in this paper is through the use of Fuzzy Logic. It also provides a brief description about the factors that are responsible for causing this cost overrun. The factors are identified by conducting a questionnaire survey and gathering responses from the relevant stakeholders which include contractors, project engineers, architects and consultants. The responses collected are further processed and analysed using SPSS software. The top 5 factors have been selected after the analysis and further used in preparation of the fuzzy logic model in the fuzzy toolbox of MATLAB. Further, the validation of this model has been done with real-time data of projects from various published research papers. Thus, the model developed provided prediction of the percentage of the cost overrun based on the percentage input of the top five factors.

Cost Effects of Modular Product Family Structures: Methods and Quantification of Impacts to Support Decision Making

2017 ◽  
Vol 139 (2) ◽  
Author(s):  
Sebastian Ripperda ◽  
Dieter Krause
Keyword(s):  
Decision Making ◽  
Early Stage ◽  
Management Strategies ◽  
Product Family ◽  
Product Variety ◽  
Family Structures ◽  
New Approach ◽  
Modular Product ◽  
Reducing Costs ◽  
The Cost

Customer demands and global markets prompt companies to offer increasing product variety. The use of modular product structures is a possible strategy for providing the necessary external variety to the market and reducing costs by lowering internal variety within the company. Current research provides several approaches for developing modular product family structures. As modularity is a gradual property, these methods generate different product structure concepts and companies have to decide at an early stage and without detailed information which concepts to implement. Most existing modularization methods offer only little or no support for decision making, particularly in terms of cost effects. This article illustrates the cost effects of variety and modular product family structures, the various cost impacts of variety management strategies and modularization methods in a literature review. A new approach to quantify these cost effects to support concept selection during modular product family design is introduced.

Addressing the knowledge management “nightmare” for construction companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paulo Vaz-Serra ◽  
Peter Edwards
Keyword(s):  
Knowledge Management ◽  
Construction Projects ◽  
Information And Communications Technology ◽  
Content Type ◽  
Construction Company ◽  
Construction Companies ◽  
Management Consultants ◽  
Knowledge Requirements ◽  
Internal Procedures ◽  
Aec Industry

Purpose Knowledge management presents a problem for the architecture, engineering and construction (AEC) industry, largely because of the industry’s fragmented structure and project-driven nature. Construction companies may be involved in a variety of projects in different locations, each having its own knowledge requirements. Companies are also expected to be competitive, flexible and innovative, but introducing new knowledge management systems (KMSs) may represent a change that is beyond the organisation’s capacity to undergo successfully, and thus becomes a “nightmare”. The purpose of this paper is to propose and test a KMS solution that can help to facilitate the capture and application of important knowledge without introducing unnecessary changes in internal procedures for the organisation. Design/methodology/approach Following a review of existing systems, and an interview survey of 22 managers in the Portuguese AEC industry (contractors, design consultants and project management consultants) a new IT-based construction KMS called ConstruKnowledge was developed. The KMS was tested, verified and validated in two Portuguese construction projects and assessed by 12 managers in the construction company undertaking those projects. Findings The results of two pilot tests using ConstruKnowledge in two Portuguese construction projects demonstrate that its use can raise the levels of confidence in decision-making, and retaining knowledge; and that it serves to add value to the company. Practical implications The Construknowledge KMS is an innovative contribution to the greater acceptance of KMSs in the construction industry. The system facilitates the effective and efficient development of an organisational KMS using basic Information and Communications Technology (ICT)-based collaboration tools. While undertaken in the context of the Portuguese industry, the KMS has a wider global potential for implementation and further development. Originality/value The originality and value of this research are that it demonstrates how a KMS can be developed and then used in a construction company to capture and share knowledge without introducing additional constraints.

scholarly journals APPLICATION OF AHP FOR SUPPLIER SELECTION IN CONSTRUCTION COMPANIES

2020 ◽  
Vol 1 (6) ◽  
pp. 921-933
Author(s):  
Rosalendro Eddy Nugroho ◽  
Maria Sherly Iskandar
Keyword(s):  
Supplier Selection ◽  
Selection Process ◽  
Careful Analysis ◽  
Procurement Process ◽  
Construction Company ◽  
Construction Companies ◽  
Decision Alternative ◽  
The Many ◽  
Hierarchy Process ◽  
Selection Of

The procurement process is an important process in supply chain management as it is the spearhead of the entire process. In carrying out the procurement process, there are often problems with the supplier selection activities. This is because the supplier selection process spends a lot of time and resources collecting data and conducting careful analysis that will affect the entire decision alternative. In making decisions relating to the many criteria and the number of alternative suppliers, it requires an effective and uncomplex assessment technique, but it provides accurate results. A mapping and determination of supplier selection criteria is required as a basis for valuation to obtain a qualified supplier. This study focused on PT. XYZ is a construction company in South Tangerang. Analytical Hierarchy Process (AHP) is used to determine the best supplier, there are 4 variables that are reference in conducting the selection of suppliers, such as: cost, quality, delivery, and service. The result in the selection of the supplier company is cost with a weight of 0.268, quality with a weight of 0.290, delivery with a weighting of 0.248, and the service with a weight of 0.194 where conclusions obtained from the analysis of the selection of the best suppliers and in accordance with the criteria, namely PT. CBL for iron suppliers, PT.SAS for cement suppliers, and PT. Citra BSD for suppliers of natural materials

scholarly journals BIM EXECUTION PROCESS OF CONSTRUCTION COMPANIES FOR BUILDING PROJECTS

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Bilge Gercek ◽  
Onur Behzat Tokdemir ◽  
Mustafa Emre Ilal ◽  
Husnu Murat Gunaydin
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Information Modeling ◽  
Building Projects ◽  
Construction Company ◽  
Construction Companies ◽  
Building Information ◽  
Minimum Requirements ◽  
Implementation Plans ◽  
Aec Industry

Building Information Modeling (BIM) has been an emerging concept in architecture, engineering and construction (AEC) industry with a vast amount of promising benefits to construction projects. Implementation of BIM, however, requires comprehensive research and strategic planning. Industry-wide and organizational implementation guidelines and standards have been published around the world either to encourage organizations to adopt BIM or to present the minimum requirements to be followed where BIM implementation is a statutory obligation. In contrast, governments or organizations in several countries such as Turkey have not mandated BIM implementation and provide no guidance. Organizations in these countries which plan to adopt BIM processes are forced to develop their own implementation plans. The purpose of this study is to provide guidance in BIM implementation for construction companies in countries where BIM implementation has not been mandated particularly during the construction phase of the building projects. 23 BIM standards and guidelines covering the BIM execution process have been reviewed. Topics that need to be addressed by BIM implementation plans have been identified and categorized under four headings. A case study of BIM implementation at a large construction company that focuses on conducting quantity takeoff and cost estimation is presented, and unique challenges of BIM implementation in Turkish AEC industry are discussed.

scholarly journals Automated identification of construction works and structural elements at an early stage of investment and construction projects’ implementation

2021 ◽  
Vol 263 ◽  
pp. 03008
Author(s):  
Alexander Ginzburg ◽  
Ilya Tyurin
Keyword(s):  
Construction Projects ◽  
Early Stage ◽  
Subsequent Development ◽  
Data Bank ◽  
Building Structures ◽  
Structural Elements ◽  
Automated Identification ◽  
Design Solutions ◽  
The Cost ◽  
The Impact

The article discusses the issues of construction objects pricing in terms of the formation of certain types of costs and an analysis of their interrelationships based on the generated data bank of design and estimate documentation of implemented state investment construction projects. Special attention is paid to the research of the impact of changes in design solutions on the cost of construction. Approaches to the reorganization of the established design technology are proposed. These approaches use automated identification of construction work and structural elements based on the method for assigning criteria for the selection of building structures that are supposed to be erected around the technological space specified by the customer. The selection criteria established in this way assist designers in finding optimal design solutions for the subsequent development of working documentation.

Sign in / Sign up

Export Citation Format

Share Document