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Supply chain management (SCM) is a concept that has originated from the supply system.

Toyota adopted the system to coordinate its supplies, and manage its suppliers.

It also describes the connection between companies that change basic materials, products or services into a finished product for the client.

The client, main contractor, designer, surveyor, sub-contractor are all part of the supply chain.

Modern procurement methods, unlike the old procurement methods, suggest and encourages all participants to adopt Supply Chain Management policy.

As a result the emergence of PPC 2000, TPC2005,..

All participants in the supply chain have a long-term objective to work together to deliver a product free from defect, completed on time with minimum cost.

This close working relationships will improve the construction industries’ productivity both nationally and internationally.

The benefits for all participants in thesupply chain management can besummarised as: Costs reduction No cost overrun Waste minimization High quality product

Defect free productFull end user’s satisfactionUser friendly productsContinuous improvementHigher reliability between supply chain

The front-end of a project is defined as: The period from an idea is conceived to the final

decision to finance the project is made. Front-end Planning is an important process in the

building project life cycle. Known in architecture terms as; programming schematic design design development

The purpose of front-end management is to:

produce a complete and reliable project concepts for evaluation before a final decision is made by the client to proceed with the project.

After final decision to finance the project is made.

It is followed by the detailed planning phase.

Most companies admit that they do not carry out front -end planning.

Often small companies do not know about front-end Planning.

It is required for every building project. Research has shown that efforts in the

detailed planning phase pay back in the implementation phase of projects.

The largest financial gains are represented by activities in the front-end phase.

Efforts made in the detailed planning phase would save:

labourmachinerymaterials in the implementation phase of projects.

It puts the company in a better and stronger position in today’s competitive market.

The uncertainty is at its highest and the cost of changes at its lowest in the front-end phase.

Uncertainty affecting a project start to fade during construction phase.

Once the client and management team have committed themselves to the project,

Challenges in Front-End Management of

ProjectsAny decision made during concept phase are the ones with greatest impact on the final project results.

All the project conditions are set up in the concept phase.

Key Issues in Front-End Management ofProjects1. A front-end assessment always starts

gathering of relevant information.2. The knowledge gained from earlier

projects are valuable.3. Often this knowledge is not stored in a

right place.4. The method of communication to collect

the information is also very important.

FRONT-ENDPLANNING

Decisionmaking

projectconcepts

Step 2

Financethe project

Step 3

Detailedplanningphase.

Motivatedworkforce

Labour productivityMachineryHigh efficiency

Materialminimum

waste

Quantitativedecisionmaking

QuantitativeDecisionMaking

DECISIONMAKING

UNDER RISK(DMUR)

DECISIONMAKINGUNDER

CERTAINTY(DMUC)

DECISIONMAKINGUNDER

UNCERTAINTY

ValueManagement

Lean construction main objective is to maximizes value and reduces waste.

It applies specific techniques in an innovative project delivery approach.

including:1. supply chain management, 2. Just-In-Time techniques.

Just-In-Time(JIT)

Supply ChainManagement

(SCM)

LeanConstruction

maximizes valuereduceswaste

Based on LeanManufacturing, of the Toyota

Production system

High productivity

LAST PLANNERSYSTEM

As well as the open sharing of information between all the parties involved in the production process.

Lean manufacturing is an outgrowth of the Toyota Production system.

Developed by Taichii Ohno in Toyota in the 1950s.

It is based on lean manufacturing, of the Toyota Production system. developed by Taichii Ohno in the 1950s.

Ohno learnt from mass production at Ford Motor manufacturing facilities in the U.S. and witnessed high level of waste during production.

Ohno identified several wastes in mass production systems in car industry such as:

1. overproducing2. waiting time 3. transporting

also, in other areas such as:1. processing methods; 2. unnecessary stock on hand; 3. unnecessary motion;4. defective goods; 5. failure to meet customers’ needs;6. high waste through out the

process.

Womack and Jones (1996) suggested that there are five key principles that need to be monitored when lean construction systems are applied in construction. Those are:

Value-clarifying the customer’s needs; the supply chain involvement in all stages,

from inception to completion; By clarifying activities or products that signify value.

Value stream: By mapping thewhole value streamestablishing cooperation between all parties involved;

identifying and eliminating waste; From taking such steps the construction process can be improved.

Flow: Business flow includes project

information such as:1. specifications 2. contracts 3. plans, etc. Job site flow involves the activities and

the way they have to be carried out. Supply flow refers to the materials

used in a project.

Pull: The efforts of all participants provides smooth pulls during the construction process.

Perfection: Use of best methods of work instructions and best procedures.

Introduction of best quality control methods.

Just-In-Time(JIT)

Supply ChainManagement

(SCM)

Business FlowPull

Perfection

LeanConstruction

maximizes valuereduceswaste

Based on LeanManufacturing, of the Toyota

Production system

JIT onlyconsiders the

Resourcesrequired

Construction LeanImprovement Programme

(CLIP),(Supply chain)

High quality product with minimallead-time

Eliminating delays and disruptions

Just-In-Time(JIT)

Supply ChainManagement

(SCM)

LeanConstruction

maximizes valuereduceswaste

Based on LeanManufacturing, of the Toyota

Production system

High productivity

LAST PLANNERSYSTEM

FRONT-ENDPLANNING

Decisionmaking

projectconcepts

Step 2

Financethe project

Step 3

Detailedplanningphase.

Motivatedworkforce

Labour productivityMachineryHigh efficiency

Materialminimum

waste

Quantitativedecisionmaking

QuantitativeDecisionMaking

DECISIONMAKING

UNDER RISK(DMUR)

DECISIONMAKINGUNDER

CERTAINTY(DMUC)

DECISIONMAKINGUNDER

UNCERTAINTY

ValueManagement