061 Logistics & Productivity PART 2

MAIN SOURCE :IMPROVING CONSTRUCTION LOGISTICS Report of the Strategic Forum for Construction Logistics Group August 2005

LOGISTICS & PRODUCTIVITYPART 2

Construction Productivity-LogisticsWhat is preventing the industry fromaddressing Logistics?

There are a number of factors such as: There is no real incentive to tackle this

because it is difficult to identify who benefits.

Those who may be required to do things differently do not necessarily benefit it.

Construction Productivity-Logistics

Every construction job is seen as a ‘one-off’.

with a team built up for a short period of time;

then disbanded afterwards; it is harder to manage the system to

optimise logistics in construction; easier for manufacturing or retail;


the fragmented nature of the construction industry;

contractual arrangements that get in the way of logistics;

lack of direct employment also hinders logistics;

Those variables list above makes logistic on construction site more difficult.


Advance planning and design of projects is generally inadequate, as are lead times.

There is a lack of transparency in costs throughout the construction process.

Decisions are often based on cash flow.


The way costs are recorded does not help identify the potential savings from improved logistics.

Unlike other industries, the information provided in construction is generally an ‘estimate’ rather than an exact science.


There is a general lack of understanding of the constraints of the supply chain.

There is also a lack of trust and confidence that the supply and chain will actually deliver when required.

Can projects rely on a ‘just in time’ delivery of products?

Clients (and others) believe that project cost already allows for appropriate resources to be committed to logistics on the project.


Off – site manufacture and Modern Methods

of Construction

One of the reasons why logistics is so important

in construction can be described as: the fragmented nature of the industry; wide range of products; unpredictable outside environment needs a

well planned logistics;


Good steps toward a better logistics innovative methods of construction; advance machinery; robotics; off site components; advance management softwares; Also, less products that need to be delivered to

and assembled on site all good step towards a better logistics.

Construction Productivity-LogisticsProgramme for improving logistics No one part of the construction industry can

deliver improved logistics on its own. The benefits will come from the different parts of

the industry.

Inter-acting in a different way such as: planning together sharing information exposing the real cost of activities in a way that

is currently not typical.


Clients and logistics Clients have every reason to expect the

supply side to deliver their projects efficiently. To ensure that proper attention is given to

logistics so that the benefits referred to earlier are delivered.

Clients can help in this by making sure that there is a Logistics Plan at an early stage in their projects.

Construction Productivity-Logistics Client should make sure that all the key

players in the supply chain have signed up to this Plan.

There should be a Logistics Plan prepared at an early stage in every project.

A Best Practice Guide prepared to help clients understand what they can expect from the supply side on logistics.

Construction Productivity-LogisticsDesign Professionals Design Professionals involvement in

good logistics. Particularly at the scheme design stage. Logistics will be greatly helped if: The design professionals should draw

up a Process Map at an early stage in the design.


Including a Bill of Materials. This should look at:1. The flow of materials needed on a

project2. Ways of minimising stockholding


Which of the professional members of the

supply chain should be responsible for this? This needs to be discussed among

managers. The quantity surveyors with their

background might have the appropriate skills for this.


Alternatively, it could require the input of logistics specialists.

Manufacturers, suppliers and distributors clearly need to make an input to this Plan.


The various professional bodies responsible for the design professions in the construction industry –

RIBA ICE IStruct E CIBSE on design issues


RICS on measurement and costing. They are in the best position to

highlight the importance of logistics. As well as in the training of those

seeking to join the profession.


In the short term: This can be achieved through awareness

guidance as part of continuing professional development.

In the medium term: The importance of logistics needs to feature

in the initial education and training of University students and new members.


The professional team needs to prepare a Bill of Materials as part of the Logistics Plan.

The professional institutions consider ways in which the role of their profession in project logistics can be incorporated in initial education and training.


Main Contractors/specialist contractors Many see the construction manager as the key

player in co-ordinating the logistics on a construction project.

This is not a function that is being carried out as effectively as it should be across the construction industry.

In some major projects logistics specialists are being employed.


The responsibility for project logistics must rest with the main contractors.

it is essential they drew up a Logistics Plan in consultation with the rest of the supply chain at the outset of a project.


The Bill of Materials will be an important input to this.

The specialist contractors should each prepare that sub-set of the Logistics Plan relevant to their specialist input.

They must decide on how they will be making optimum use of the skilled labour on site.

Construction Productivity-Logistics Those responsible for the logistics on a

project must have the right skills to perform the function.

CITB Construction Skills is asked to recommend how logistics skills can be developed in the industry.

Therefore: Main contractors most prepare a Logistics

Plan in consultation. The rest of the Supply Chain at the outset of

each project must be involved.


This Plan should include the input to the project from the specialist contractors.

Also, the key manufacturers and suppliers.

CITB Construction Skills review the need for logistics skills in the industry.

CITB to recommend what needs to be done to address this.


Manufacturers/Suppliers/ Distributors

Key objective: ensure that the products and materials

arrive on site at the time; In the quantities that are required; This does not just depend on the

efficiency of the supply network.


it also relies on the pre-planning of those on the construction site.

Effective communication amongst: those planning the project; those supplying the products; those supplying materials. Manufacturers and suppliers can make a

significant contribution to the efficiency.


Manufactures involvement: It will help if they are involved early enough in

the process. If they can make an input to the Logistics

Plan through the preparation of the Bill of Materials.

On the transport side: There may be an opportunity to look at ways

of developing best practice.


Learning from other industries: through the Department for

Transport’s Sustainable Distribution programme;

This has not been given any attention yet.

Greater transparency of cost in the construction process.


Therefore: The Department for Transport’s

Sustainable Distribution programme include work on transport in the construction industry.

Key manufacturers Suppliers


Distributors input to the Bill of Materials being prepared as part of the Logistics Plan for each project.

Distributors reflect the cost of distribution in their pricing policies.

Construction Productivity-Logistics distributors work with contractors See how lessons from the

Consolidation Centre approach might be transferred to other significant construction projects and programmes.

Construction Productivity-LogisticsInformation Technology The use of electronic communications as

effectively as other industries. This will to help in improve logistics

throughout the supply chain. The industry IS not utilising bar coding for

product ordering. E-tagging for tracing products throughout

the process. To the extent that seemed appropriate.

Engineering

061 Logistics & Productivity PART 2