￼Table of Contents
Executive Summary 3 Company Background 3
Part A – Analysis of Current Supply Chains
Critical Actors and Nodes 4 Procurement Approach 4 Subcontractor and Supplier Relationships 4 Current Supply Chain Map (Table 01) 5 Client Relationships 6 Part B – Recommendations
Redesigning the supply chain X Proposed Supply Chain Map (Table XX) X Part C - Conclusions
Value of changes to the supply chain X
Part D - References
￼Report Prepared by XX
Summary of this report and its key findings.
Table to show key areas requiring improvement and recommendations. Company Background
This report focuses on the identification of the key areas requiring improvement and proposes a number of changes for implementation to improve the overall performance and productivity of MP Constructions. ￼￼Report Prepared by XX
￼Part A - Existing Supply Chain Analysis
A simplified version of Max Profit Constructions existing supply chain map is illustrated in Figure 01, showing the various flows of materials, capital and information. Critical Actors and Nodes
There are a number of critical actors involved in MP Constructions’ supply chain as follows: Architects and Consultants – The Architect is engaged by the client to complete the design work and to appoint consultants i.e. structural engineers. These actors exchange information in order to complete the design and project specifications, although there are no contractual links between both parties. Max Profit Constructions – Head Contractor engaged to complete construction works by the Client Sub-contractors – MP Constructions engages subcontractors to complete work packages i.e. Carpentry, Electrical works etc. based off design works completed by the Architect and Consultants, although there is no direct link between these parties. Material and Equipment Suppliers – Sub-contractors attain materials and equipment to complete their works from relevant suppliers. Manual Labour – Sub-contractors must have labourers to complete the construction of their particular work package. Manufacturing – Manufacturing of raw materials to create building products required by sub-contractors. Raw materials – Raw materials extracted and processed ready for manufacturing. Due to the fragmentation of the pre-construction and construction phases, there is little to no relationship or communication between MP Constructions and the consultants. Procurement Approach
MP Constructions uses a traditional procurement approach, whereby the client appoints the design team to complete documentation prior to the tendering process. While common in the construction industry, there are a number of issues with this procurement approach. ￼Report Prepared by XX
￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼ARCHITECT MP CONSTRUCTIONS
￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼SUB-CONTRACTORS i.e Carpenters, Concreters, Bricklayers, Electricians etc MATERIAL SUPPLIER
￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼CONSULTANTS i.e. Structural Engineer, Geotechnical engineer etc. MANUAL LABOUR
￼￼￼￼￼￼￼FLOW OF INFORMATION FLOW OF MATERIALS FLOW OF CAPITAL Figure 01 - Max Profit Constructions Current Supply Chain
• Procurement approach is sequential no opportunity for overlapping of phases, results in time wastage.
• Tendering required finding the “lowest cost” sub-contractors and suppliers, takes an unnecessary amount of time to locate potential bidders.
• Long lead times for materials
• Incorrect estimation processes leading to ordering of excess material and resulting in wastage on site.
• Traditional construction methods are becoming outdated i.e. timber framing construction Report Prepared by XX
￼Part B - Recommendations
• MP Constructions would benefit from early involvement in the design phase providing greater input and ideas for innovation.
• MP Constructions could consider having an...
References: Cox, A., Ireland, P. & Townsend, M. (2006) Managing in Construction Supply Chains and Markets. Thomas Telford
Cox A. & Ireland, P. (2002) ‘Managing construction supply chains: The common sense approach’ Engineering, Construction and Architectural Management 2002, 9, 409-416
Cox, A. & Townsend, M. (1998) Strategic Procurement in Construction, Thomas Telford Publishing.
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