Vous êtes sur la page 1sur 82

Procurement and Integration

Thursday, 26 November 2009


Procurement and Integration

Welcomes

Arrangements

Introductions

Thursday, 26 November 2009


Procurement and Integration

Introductions

Rethinking Construction

Principles of Collaborative Working

Understanding Customer Requirements

Supplier Relationships

Integrated Management

Managing Costs and Programme Collaboratively

Collaborative Improvement

Supplier and People Development

Bringing it all together

Construction Commitments - Endorsements

Thursday, 26 November 2009


Martin Brown

martin brown

fairsnape

email: fairsnape@gmail.com
twitter: @fairsnape
mob: 07776234702
skype: fairsnape

Thursday, 26 November 2009


References and Downloads

http://ciaps-fs.posterous.com/

Thursday, 26 November 2009


Thursday, 26 November 2009
From Egan to present day ….

Thursday, 26 November 2009


Drivers
•Committed leadership
•Focus on the customer
•Product team integration
•Quality driven agenda
•Commitment to people

Project Process Improvement


•Product development
•Product implementation
•Partnering the supply chain
•Production of component

Targets for Improvement


•Capital cost
•Construction time
•Predictability
•Defects
•Accidents
•Productivity
•Turnover and profits

Thursday, 26 November 2009


new
thinking
required

Our industry:

Historical (‘pre Egan’)

Now (‘Egan compliant’)

Forward looking…

Thursday, 26 November 2009


Principles of Collaborative Working

Focus on
Customers
Values

Leadership Establish
People Relationships
Development

Delivering
Superior
Value

Develop +
Continuous Integrated
Improvement Processes

Manage
Costs / Time
Collaboratively

Developed from: Building Down Barriers


Prime Contracting Handbook

Thursday, 26 November 2009


Customer Requirements

Understanding

Business not Buildings

Early Involvement

Value Management and Engineering

Thursday, 26 November 2009


Understanding Your Customers

• Who are they?


• What is their business?
• What motivates/drives them?
• Who are their customers?
• What are their strengths and weaknesses?
• What are their risks and threats?
• What are there aspirations?

Thursday, 26 November 2009


Understanding Your Customers
think business not building

• Who are they?


• What is their business?
• What motivates/drives them?
• Who are their customers?
• What are their strengths and weaknesses?
• What are their risks and threats?
• What are there aspirations?

Thursday, 26 November 2009


Opportunity Cost
Opportunity v Cost

Brief Design Construct In Use

Project Life

Thursday, 26 November 2009


Principles of Collaborative Working

Focus on
Customers
Values

Leadership Establish
People Relationships
Development

Delivering
Superior
Value

Develop +
Continuous Integrated
Improvement Processes

Manage
Costs / Time
Collaboratively

Developed from: Building Down Barriers


Prime Contracting Handbook

Thursday, 26 November 2009


Supplier Relationship

Selection

Procurement

Fit

Thursday, 26 November 2009


Procurement Basics

Finance

Technical

Ability (soft issues)

Performance Experience

Thursday, 26 November 2009


Ability (soft issues)

Quality

Safety

Sustainability

People

Thursday, 26 November 2009


Procurement Models

Historic Need Develop Procure Implement

Develop
Tranistional Need Procure
Implement

Develop
Asiprational Procure Need
Implement

Thursday, 26 November 2009


http://bit.ly/77M2EB

Thursday, 26 November 2009


High
Customer Attractiveness

Attractiveness of Account

Strategic Strategic
Development Critical

Nuisance Exploitable

Low Income High

Thursday, 26 November 2009


High
Customer Attractiveness

Attractiveness of Account

Strategic Strategic
Development Critical

Nuisance Account

•Low income
Nuisance
•No customer risk Exploitable
•Pay low attention
•Lose without pain!!!!!

Low Income High

Thursday, 26 November 2009


High
Customer Attractiveness

Strategic Development
Attractiveness of Account

•Pay close attention


Strategic Strategic
•Nurture account
Development
•Develop relationship Critical
•Seek further
opportunities

Nuisance Account

•Low income
Nuisance
•No customer risk Exploitable
•Pay low attention
•Lose without pain!!!!!

Low Income High

Thursday, 26 November 2009


High
Customer Attractiveness

Strategic Development
Attractiveness of Account

•Pay close attention


Strategic Strategic
•Nurture account
Development
•Develop relationship Critical
•Seek further
opportunities

Exploitable Account
•Short term gain
Nuisance Account •Adversarial client
•Maximise variations
•Low income •Seek shortcuts
Nuisance
•No customer risk •Pay Exploitable
late
•Pay low attention •Pass risks to
•Lose without pain!!!!! contractor
•Drive lowest deal with
contractor

Low Income High

Thursday, 26 November 2009


High
Customer Attractiveness

Strategic Critical
Strategic Development •Long term alliance
•Business certainty
Attractiveness of Account

•Pay close attention


Strategic •Sustainable profits
Strategic
•Nurture account •Better understanding of
Development
•Develop relationship clientsCritical
needs
•Seek further •Develop Win-win
opportunities •Value management
•Continuous review and
improvement
Exploitable Account
•Short term gain
Nuisance Account •Adversarial client
•Maximise variations
•Low income •Seek shortcuts
Nuisance
•No customer risk •Pay Exploitable
late
•Pay low attention •Pass risks to
•Lose without pain!!!!! contractor
•Drive lowest deal with
contractor

Low Income High

Thursday, 26 November 2009


Customers Procurement Strategies
High

Strategic Security
Strategic Critical
•Sensitive to supply
•Business/customer
•Low flexibility on spec
critical
•Insensitive to cost
Strategic Strategic
•Very sensitive to supply
•Customer/Business
Security
Critical
•DevelopCritical
Win-win
•Long term alliance
•Consider aggregating
Risk

•Share risk
demand
•Continuous review and
•Evergreen contracts
improvement

Tactical Acquisition Tactical Profit


•Minimal supply risk
•Minimal customer risk
•No supply risk
Tactical •Prescriptive spec
Tactical
•No customer risk
•Selection based on cost
•HighAcquisition
flexibility on spec Profit
•Short-term renewable
•Process costs more
contracts
•Eliminate the Process
•Reverse Auctioneering
•Procurement Cards
•Spot Deals

Low Expenditure High


Thursday, 26 November 2009
Sustainable Relationship
Strategic Critical
High

•Strategic Alliance Customers


•Long Term
Strategic Relationships
Security •Inter-dependability
Risk

Tactical
Tactical Profit
Acquisition Strategic Critical

High
Low High •Strategic Alliance
•Long Term
Spend (£)
Relationships
Strategic

Attractiveness
•Inter-dependability

of Account
Development

Suppliers
Nuisance Exploitable

Low High
Income (£)

Thursday, 26 November 2009


Sustainable Relationship

Strategic Critical

High •Strategic Alliance


•Long Term
Relationships
•Inter-dependability

Low High

Thursday, 26 November 2009


Express the following as
percentages %

•Sometimes

•May be
Common
•Always
Understanding •Often

•Possible

•Unlikely

•Never

•50/50

•Likely

•Impossible

Thursday, 26 November 2009


Principles of Collaborative Working

Focus on
Customers
Values

Leadership Establish
People Relationships
Development

Delivering
Superior
Value

Develop +
Continuous Integrated
Improvement Processes

Manage
Costs / Time
Collaboratively

Developed from: Building Down Barriers


Prime Contracting Handbook

Thursday, 26 November 2009


Integrated Management

Common Processes

Integrated Project Team

Clustering

Communication and Information

Thursday, 26 November 2009


Understanding Your Suppliers

• Who are they?


• What is their business?
• What motivates/drives them?
• Who are their other customers?
• What are their strengths and weaknesses?
• What are their risks and threats?
• What are there aspirations?

Thursday, 26 November 2009


Thursday, 26 November 2009
Horizontal:
Clusters formed across suppliers and subcontractors, often to increase
range and scope of services, across a number of contracts for a number of
clients

Vertical Clusters:
formed down through supply chain, often led by a main contractor or
client based on a particular building type, eg housing

Specialist Clusters:
formed around a specialist, either technical or building specialism, eg
AMEC airport pavement team

Ready to Go:
Clusters can emerge and be formed from existing relationships where
proven working togtehr success has been demonstrated and put on hold
pending the correct contract or opportunity to activate.

Thursday, 26 November 2009


• “Construction is information-intensive”
– “information overload”
– paper-intensive

Thursday, 26 November 2009


Communication and Information
‘Technologies’ evolving to support collaboration
• Video- and tele-conferencing
• Face-to-face • Extranets
• Written word
• Web-conferencing applications
• Hand drawings
• File-sharing (P2P)
• Telephone
• Telegram • Instant messaging
• Telex • Discussion forums
• Fax • VOIP Skype
• CAD … BIM • Home pages (iGoogle)
• Email • Wikis
• Groupware (eg: Lotus Notes) • Blogs
• File transfer protocol (FTP) • RSS
• Websites • Social networking
• Intranets, enterprise portals • Social search, tagging, sharing
• Mashups: Mapping, time-lines, etc
• Virtual worlds

Thursday, 26 November 2009


‘examples and demos’

RSS feeds to igoogle


Collaborative project blogs
Networks and forums (be2camp and AEC Network)
Woobius
Supply chain / Project Mashup (visualisation on googlemaps)
Earth Exchange
Project timelines
Sharing with twitter and facebook
Googlewave collaboration with project + supply chain
Second Life

Thursday, 26 November 2009


Building Information Modelling

Thursday, 26 November 2009


Thursday, 26 November 2009
Thursday, 26 November 2009
Principles of Collaborative Working

Focus on
Customers
Values

Leadership Establish
People Relationships
Development

Delivering
Superior
Value

Develop +
Continuous Integrated
Improvement Processes

Manage
Costs / Time
Collaboratively

Developed from: Building Down Barriers


Prime Contracting Handbook

Thursday, 26 November 2009


Collaborative Costs

Price v Cost

Open Book

Cost Certainty

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Labour
Plant
Material

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Labour
Plant
Material

Waste

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Overheads
Labour
Plant
Material

Waste

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Profit
Overheads
Labour
Plant
Material

Waste

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Profit
Overheads
Labour
Plant
Material

Tender price
Waste

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Claims
Profit = extra cost +
profit
Overheads
Labour
Plant
Material

Tender price
Waste

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Claims
Profit = extra cost +
profit
Overheads
Labour
Plant
Material
Labour
Tender price Plant
Waste
Material

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Claims
Profit = extra cost +
profit
Overheads
Labour
Plant
Overheads
Material
Labour
Tender price Plant
Waste
Material

Thursday, 26 November 2009


Understanding ‘price’
Old New
Price Thinking Thinking

Claims
Profit = extra cost +
profit
Overheads
Labour
Profit
Plant
Overheads
Material
Labour
Tender price Plant
Waste
Material

Thursday, 26 November 2009


Collaborative Programme

Time Certainty

Lean Construction

Last Planner

Thursday, 26 November 2009


Thursday, 26 November 2009
projectfootprint
100%
1200

90%
1000

80%
800

70%
600

400 60%

200 50%

0 40%

-200 30%

-400 20%

-600 10%

-800 0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 31 32 33 34 35 36 37 38 39 40 41 42
Summary
Non-Productive Productive Productive Support Statutory

Thursday, 26 November 2009


lean…

Lean Management

Lean construction can


Lean Construction reduce programmes by
30% !
Last Planner

CICLOPS –
Construction Industry Collaborative Planning System

Thursday, 26 November 2009


Thursday, 26 November 2009
Thursday, 26 November 2009
Thursday, 26 November 2009
Principles of Collaborative Working

Focus on
Customers
Values

Leadership Establish
People Relationships
Development

Delivering
Superior
Value

Develop +
Continuous Integrated
Improvement Processes

Manage
Costs / Time
Collaboratively

Developed from: Building Down Barriers


Prime Contracting Handbook

Thursday, 26 November 2009


Improving

Plan Do Check Act

KPI’s

Process Improvement

Improvement Plans

Thursday, 26 November 2009


Constructing Excellence KPI’s

Thursday, 26 November 2009


Thursday, 26 November 2009
Thursday, 26 November 2009
Principles of Collaborative Working

Focus on
Customers
Values

Leadership Establish
People Relationships
Development

Delivering
Superior
Value

Develop +
Continuous Integrated
Improvement Processes

Manage
Costs / Time
Collaboratively

Developed from: Building Down Barriers


Prime Contracting Handbook

Thursday, 26 November 2009


Development

Supplier Development

People Development

Thursday, 26 November 2009


Fit Organisations

Thursday, 26 November 2009


Fit Organisations
Competitive strengths

Hardness to
Copy
Thursday, 26 November 2009
Fit Organisations
Competitive strengths

Products and
Services

Hardness to
Copy
Thursday, 26 November 2009
Fit Organisations
Competitive strengths

Processes

Products and
Services

Hardness to
Copy
Thursday, 26 November 2009
Fit Organisations
Competitive strengths

Organisational
structure

Processes

Products and
Services

Hardness to
Copy
Thursday, 26 November 2009
Fit Organisations
Competitive strengths

Suppliers and
Customers

Organisational
structure

Processes

Products and
Services

Hardness to
Copy
Thursday, 26 November 2009
Fit Organisations
Competitive strengths

People

Suppliers and
Customers

Organisational
structure

Processes

Products and
Services

Hardness to
Copy
Thursday, 26 November 2009
Fit Organisations

Values
Competitive strengths

People

Suppliers and
Customers

Organisational
structure

Processes

Products and
Services

Hardness to
Copy
Thursday, 26 November 2009
Construction Commitments

Company Responsibilities

Business

Integrated Team Activity

Risk

Performance

Thursday, 26 November 2009


Construction Commitments

Company Responsibilities

PI.01
Does the company apply an integrated procurement policy?

PI.02
Do you apply evaluation criteria in a transparent way to your contribution to the framework
decision process?

PI.03
Do you involve your supply chain partners, where appropriate, in the design and planning
stages of the framework decision process?

PI.04
Where appropriate do you seek specialist advice to assist in your contribution to the
framework decision process?

PI.05
In what framework process areas do you currently seek specialist advice and what is the
source of this advice? of

Thursday, 26 November 2009


Construction Commitments

PI.06
Do you identify your supply chain partners at an early stage of a framework contract?

PI.07
Does the company assess sub-contractors before they participate in its supply chain?

PI.08
Does the company monitor the performance of members of its existing supply chains?

PI.09
What are the procedures adopted by your company to assess the competency of existing and
potential supply chain partners?

PI.10
What is the average timespan of the established relationships with your key suppliers?

Thursday, 26 November 2009


Construction Commitments
Integrated Team Activities

PI.11
What are the criteria does a supplier or subcontractor need to meet to to sustain a long term
relationship with your company?

PI.12
Does the company liaise/meet with its supply chain partners on a regular basis to maintain an
effective business to business relationship?

PI.13
Are ‘action plans’ communicated to all relevant supply chain members' staff?

PI.14
Does the company liaise/meet with its supply chain partners to assess specific project-related
performance?

PI.15
Does the company involve its supply chain in the design and planning stages of construction
projects?

Thursday, 26 November 2009


Construction Commitments
Business Practices

PI.16
Does the company award supply chain contracts based on open book cost/ transparency of
cost basis?

PI.17
What percentage of the company's supply chain contracts in 2009 were awarded contracts
on open book cost/ transparency of cost basis?

PI.18
Does the company's supply chain members abide by the provisions of the Fair Payment
Charter e.g. 30 day payment periods?

PI.19
Do you check the financial standing of individual members of your supply chain at regular
intervals?

PI.20
Does your company allocate financially qualified risk to its framework partners?

PI.21
Do you and your integrated team partners align cash flow and year end reporting?r e

Thursday, 26 November 2009


Construction Commitments
Risk Management

PI.22 Does the company clearly identify and financially quantify the risks arising from
participation in a framework process?

PI.23 On what basis do you cost financial risks?

PI.24 What procedures does your company have in place to check that your framework
partners are adequately resourced to cover their financial obligations throughout the
framework agreement?

PI.25 How is the workload exposure managed to account for the collective behaviour of
the team and the consequential risk?

PI.26 Do you have procedures in place validate the financial resources of your
downstream supply chain partners?

PI.27 What are your company's requirements in evaluating tender submissions from
your supply chain partners?

PI.28 Does the company liaise/meet with its supply chain partners regularly to assess
specific project related risks?

PI.29 Do your supply chain members measure and report your performance back to
you?

Thursday, 26 November 2009


Construction Commitments
Performance Measurement

PI.30 How many innovation improvements have been developed by the company's
supply chains over the last 3 years?

PI.31 Does the company use KPIs to measure the effectiveness and efficiency of its
supply chain during/after the construction phase of construction projects?

PI.32 Does the company use supplier performance defect values to compare
performance against its peer group and/or other industry benchmarks?

PI.33 "Does the company use any financial indicators (other than ""profit"") to monitor its
business performance?”

PI.34 What actions has the company taken in the last three years to improve its business
performance indicators?

PI.35 Does the company use staff indicators to monitor this area of its business?

Thursday, 26 November 2009


Construction Commitments
Performance Measurement

PI.36 What actions has the company taken in the last three years to improve staff
performance?

PI.37 Does the company have development plans specifically for the staff responsible for
managing its supply chains?

PI.38 How does the company monitor the implementation of staff development plans within its
supply chains?

PI.39 Does the company have a procedure that ensures clients’ needs and requirements are
delivered before, during and after project completion? last three contacts

PI.40 How many projects did the company complete last year?

PI.41 How many of last year’s projects were completed on time?

PI.42 How many of last year’s projects were completed within budget?

PI.43 How many companies are in the company's immediate supply chain pool?

PI.44 How many companies have been in the company's immediate supply chain for more
than 5 years

Thursday, 26 November 2009