Assignment 2

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TABLE OF CONTENTS

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1.0 INTRODUCTION

This research looks at the service delivery operation of a Mechanical & Electrical (M&E)
Consultant company. A study is conducted on the roles and responsibilities of the company, and
the specific needs of clients for services in terms of the five performance objectives that consist
of Quality, Speed, Dependability, Flexibility and Cost.

The research is conducted at Noble Existence Sdn. Bhd. (NE), a Malaysian company, which
have an office in Malaysia whereby daily operations are conducted. The company has about 12
workers that comprise of the Bosses, Engineers, Designers, Drafters, Financialist and
Receptionist. There are two bosses, one Electrical base, and the other, mechanical base whose
jobs includes jobs lobbying to acquire projects from clients, management and supervision on all
projects and looking after the company’s welfare as a whole. Engineers comprise of senior
engineers and junior engineers (fresh graduates) that will be assigned projects to be handled,
monitored and report directly to the bosses. The Designers will produce an overall design of
M&E services drawings based on the input and calculations from the engineers while the drafters
will complete the drawings. The financialist handles and monitors all company expenditures,
services collection and keeps the bosses informed on the company’s financial situation at all
times. The Receptionist as the name implies handles all matters of reception in the office and
odds and ends that is needed to be done. The company’s hierarchy is shown in Figure 1:
Company Hierarchy.

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Figure 1: Company Hierarchy

In Noble Existence, all operations are guided with the company’s Standard Operating Procedure
(SOP)(refer to Appendix 1), this is to ensure that all things are done accordingly to avoid
overlooking or bypassing of procedures that will affect the overall outcome of a project. The
standard operating procedure will be revised from time to time to cater for the new requirements
by the local authority. Since the company is operated on project basis, it is applied to all projects

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2.0 Standard Operating Procedures of Noble Existence

The purpose of this study is to examine the operating procedures of the company in detailed and
to understand it clearly so alteration can be implemented to further improve it in terms of the five
performances objectives. The study take place in the project implementation area, after careful
analysis it is summarize into 8 stages or events that demands activities from parties involved
(Refer to Appendix 1)

2.1 Stage 1: Land Use - Conversion, Subdivision, Amalgamation

At the beginning, the Land Surveyor has the primary responsibility for all land matters in
accordance with the National Land Code (NLC). The duration of this event is quite subjective
and unknown to Noble Existence since most of the time they are invited into discussion after the
fact. NE has no deliverables on this matter but will not be able to proceed to the next stage if the
land issue is not sorted out.

In terms of the performance objectives, the speed criteria play a major part in this process. The
land surveyor will need to get legal issues pertaining to the land use organized and sorted out as
their actions might delay the project from starting off.

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2.2 Stage 2: Layout Plan Approval or Development Order

At Stage 2, NE will be involved in determining the employer’s requirements and assisting the
Layout Planner in finalizing the layout before submission for to the local authorities for
approval. NE is required to provide Preliminary Engineering Brief that covers the Load
assessment, Communication assessment, Substation requirements, Tenaga National Berhad
(TNB) reserves and Exchange requirements. The process here is tedious as NE has to liaise with
the local authorities such as Electricity service provider TNB, Telephone service provider
Telekom Malaysia Berhad (TMB), Fire Fighting Authority BOMBA, and Water services
provider SYABAS for the latest requirement. The confirmatory notes of all discussions and
meetings with authorities and utility providers will then be recorded, leading to the issuance of
technical support letters from local authorities and the state planner.

In terms of the performance objectives, the Quality factor is often demanded by the client. As a
M&E consultant, it is NE’s job to provide correct calculations and design with no oblivious
errors in this preliminary stage. This will reflect in the core competencies of NE, doing a good
job here will leave a good impression for the clients who in turn provide greater opportunities to
acquire jobs in the future. The flexibility criteria are also vital here as the initial phase of design
is subject to comments and approval of the local authorities. It is important to provide at least
two or more alternatives if the first submission is rejected to avoid complications. NE is also
advised to be proactive in this matter to solve the problem as soon as possible as it will show on
the Dependability factor. Deadlines promised to the client must be fulfilled without delaying
whenever is possible. Ineffective use of time here will result into more unwanted cost; clients
want their delivery exactly as planned. In the consultancy business, there are no second chances
if the said consultant failed to perform his duties on time.

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By using the American Society of Mechanical Engineers (ASME) flow process symbols, the
Flow Process Chart for this stage is shown in Figure 2: Stage 2 Flow Process Chart.

Figure 2: Stage 2 Flow Process Chart

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2.3 Stage 3: Infrastructure Plan Approval

At Stage 3, discussions and meetings are carried out with the infrastructure engineers with the
intention to acquire the Infrastructure Plan approval. NE’s roles here are to design Street
Lighting and Telephone service infrastructure and Electrical Reticulation for the project. The
whole phase starting from the initial design stage to the Tender Documentation stage are
monitored, under constant review and discussed with the client/developer to keep them informed
on the availability of power supply and telephone lines for development. Preparation of all
submission drawings, engineering calculations, cost plan, tender drawings and specifications are
done here and the final product is a detailed Infra Tender Document. This process will take
around 2-3 months depending on the cooperation from the local authorities and the demands
from the developer themselves.

In terms of the performance objectives, Speed is more important here as the client will request
the authorities’ submission to be pushed in as soon as possible to prevent delays. It is a known
fact that the most local authorities tend to take their own sweet time in commenting and
approving drawings submitted by consultants. Frequent follow-up by the consultants to acquire
the technical approval is advised. The Quality criteria must too be fulfilled here since any
mistake done by the consultant will result in rejection by the local authorities. However, the
quality issue here often subject to the local authorities perspectives. For good or ill, the local
authority will often impose new requirements that incur additional cost. Most people will just
comply with the new requirements without objection but the cost implication is not favored by
the client. In this matter, it is the consultant’s responsibility to justify his design and explained to
the local authorities or seeks proper clarification from them before submitting to the required
change. The quality of a consultant is also dependent on his ability to question, analyze and make
good decisions..

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The stage 3 flow process chart is shown in Figure 3.

Figure 3: Stage 3 Flow Process Chart

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2.4 Stage 4: Building Plan Approval

At Stage 4, both the Architects and Engineers have the primary responsibility to submit to all
technical departments required for Building Plan (BP) approval and to follow up for approval.
Similar to Stage 3, the process includes all the necessary engineering calculations to support
submission and calculations of submission fees and early notification to the Employer for
payment.

In terms of the performance objectives, it emphasize on both the Speed and Quality criteria
similar to those mentioned in stage 3. The issue at hand is exactly the same with the addition of
request payment from the client. Printing charges, documents preparation and couriers requires
reimbursement from the client. Most of the time, this cost will be overlooked and the client will
conveniently forget about such matter. It is a consultant’s role to submit an early notification to
the employer to remind them to pay for NE’s services.

The stage 4 flow process chart is shown in Figure 4.

Figure 4: Stage 4 Flow Process Chart

2.5 Stage 5: Building/Infrastructure – M&E Design

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In this stage, NE is required to give an M&E Design Brief complete with report on all M&E
concept and detailed design. Client & Consultant Meeting (CCM) among Architects and
Engineers are held together with the Client in a weekly basis for design coordination, budgetary
costing (value engineering), buidability issue, quality assurance that is subject to client and end
user judgement and sharing of experience to solve problems. Drawings are issued for review and
approval to all relevant parties, most importantly to obtain the employer’s signoff. By now, all
M&E drawings shall be finalize and to be submitted to authorities for approval. The full tender
document for both infrastructure and building plan shall be prepared and carry on to the next
project stage.

In terms of the performance objectives, Cost is often been criticized here with the universal
perception of “Cheap and Good” which is always the attractive objective to the client. In the
M&E consultant industry, it is known as minimal budgetary costing also known as “Value
Engineering”. The term “Value Engineering” is often subject to discussion even among
engineers as the Quality criteria are also within its boundary of influence. Different engineers
will have different designs and different ways of looking at things; some will imply that cheap
design will offer lower quality products compared to a higher invested project, provided with
sufficient analysis and reports. However, some engineers will come out with a different design
using similar cost to produce supposedly better quality products to convince the client. In this
case, the safety factor comes into play. In all engineering design, safety can never be
compromised, as a rule of thumb safety is the most important criteria on top of both quality and
cost. If the design incurs lower Cost with average Quality and is technically sound, it is the job of
the consultant to convince the client to accept his work. High Quality in this stage will produce
fewer mistakes made by the processes in the operation, this in turn minimize cost and time to
correct mistakes and will have less irritation and confusion in the later stages.

The stage 5 flow process chart is shown in Figure 5.

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Figure 5: Stage 5 Flow Process Chart

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2.6 Stage 6: Tender

In Stage 6 the tender stage, NE will be assigned to call tender for infrastructure works as contract
administrator. NE is also required to assist the Architect or Quantity Surveyor (QS) to call tender
for building parcels. This consist of inviting eligible and pre-qualified tenderers and giving them
instructions and details complete with tender drawings and specifications for their reference and
perusal. The tenderers will provide all necessary documents required for NE to prepare an
overall evaluation report for the client. Sessions of Tender openings with the Architect or QS and
Tender Clarification with the tenderers are held to shortlist the competitive ones. Before
awarding the project contract to the successful tenderer whereby Letter of Acceptance (LA) is
given, the tendered rates are rationalized.

In terms of the performance objectives, Speed and Flexibility is preferred by the client here. The
shorter elapsed time between the client requesting tender evaluation report and then receive them
from the consultant the better. On top of that, given the fast evaluation report prepared by the
consultant, the services will be accepted easier, thus strengthening Flexibility.

The Flow Process Chart for this stage is shown in Figure 6: Stage 6 Flow Process Chart.

Figure 6: Stage 6 Flow Process Chart

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2.7 Stage 7: Construction

In Stage 7, NE will issue construction drawings to the relevant parties for construction at site.
Site meetings will be attended by NE’s representatives for coordination and discussion of site
issues. Periodic checks will be organized to ensure quality of workmanship and materials as per
specifications and contract requirements. Any site issue will be rectified by the inspection of
engineers and issuance of engineering instructions. Monthly interim claims will be certified by
the engineer in charged until the final claim. The process will go on until Post Construction. The
duration for this stage is range between 12 months to 36 months depending on the size of the
project.

In terms of the performance objectives, Flexibility here will support Cost and maintain
Dependability. During the construction period at a project site, changes to the design will be
made quickly if faced with site issues after exhausting other alternatives. This requires the
consultant to be able to adapt into a changing environment and circumstances quickly and
without disrupting the rest of the operation. For example:

The manhole installed at the site entrance has caused water seeping through the ground that
impede access to the site, the engineer in charged should rectify the problem quickly by issuing
an Engineering Instruction to remove the manhole and thus solving the water leakage problem.

A delayed response by the engineer will ultimately cause disruption at the site and will incur
unnecessary damages. The ability to change over between tasks quickly and without wasting
time and capacity helps in keeping the operation on schedule when unexpected events disrupt the
main operation’s plans.

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The Flow Process Chart for during the event of issuance of engineering instructions is shown in
Figure 7: Flow Process Chart for Engineering Instructions.

Figure 7: Flow Process Chart for Engineering Instructions

2.8 Stage 8: Post Construction

In the last stage, the project is completed with all necessary documents issued to all parties.
However the contractor is still subject to breach of legal duty with liability for damages if any.
Throughout the whole process, a post-contract review is implemented to identify lessons to be
learnt and mistakes to be avoided in future projects.

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 3.0 Recommendations

There are many stages of operating process provided by the Standard Operating Procedures
provided by NE. In this case, most problems occur during the construction stage when sudden
changes to the design are required at short notice. The ability to act fast and effective to solve the
issue at hand will reduce damages caused and reduced overall time delay for the project. Each
project has a fixed amount of time duration as agreed upon awarding of the contract. By the end
of that duration, the completed job site will then be handed over to the purchasers and there are a
lot of parties involved when come to proper documentations. Failing to handover the completed
project site on time will cause a lot of legal issues and both the client and contractor will be
subjected huge fines. So, it is also the responsibility of the consultant engineer in charge of the
project to not cause any delay and ensure the smooth progress of his project site. For NE, the
most likely issue that will occur is the late issuance of Engineering Instruction (EI) that might
cause delay and unwanted cost to the project site. For Example: Figure 8: Detailed Flow Process
Chart for Engineering Instructions when there is a problem at site located far away.

½ hour

1 hour

2 hours

½ hour

3 hour

1 hour

½ hour

3½
hour

Time required to issue EI = 12

Hours

Figure 8: Detailed Flow Process Chart for Engineering Instructions

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 By studying Figure 8, it takes at least 12 hours for the Engineer to issue an official Engineering
Instruction to solve the problem at hand. This is the fastest time providing there are no external
factors that will influence the process such as heavy rain, miscommunication, engineer on duty is
busy at the moment whereby site inspection is postponed to another day and other factors. The
monthly expenditure to monitor the project site is estimated at RM 2,000 (includes Hotel stay,
travelling allowances, etc). Reference to past projects of NE, there are late issuance of EI of up to
a month because the engineer was unable to visit the site due to the fact that the project site is too
far and miscommunication with the contractors. This has cause major delays to the site and the
client is not content with the situation. To prevent such incident from happening again, the
following alteration to NE’s SOP is recommended as shown in Figure 9.

½ hour

1 hour

2 hours

½ hour

1 hour

½ hour

Time required to issue EI =

5½ Hours

Figure 9: Recommended Flow Process Chart for Engineering Instructions

Based on the above recommendation, a site Resident Engineer is hired to be stationed at site for
close supervision and monitoring purposes. The overall operating processes have been reduced
by two and it only takes at 5½ hours for the Engineer to issue an official Engineering Instruction
to solve the problem at hand. The monthly expenditure to monitor the project site is omitted and
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can be used to hire the Resident Engineer. Furthermore, any other site issues can be solved right
away by the engineer stationed there. In terms of the key performance objectives, the Speed
criteria have been fulfilled since the action time has reduced from 12 hours to 5½ hours. This
speedier process improves the Dependability of the consultant by solving the problem on time
for the contractor. The Cost constraint is kept at a minimal since the damages are rectified in
time. Overall, the recommended changes will bring more benefit than the existing operating
process.

4.0 Conclusion

The research was successful in terms of assessing and further analyzing on how an M&E
consultancy company operates. Given this opportunity to study the internal affairs of Noble
Existence Sdn Bhd with the assistant of both my bosses, I was enlighten in the possibilities of
Operations Management can do to a company. To understand a company’s standard operating
procedures and improved it requires vast knowledge in operations management. At this stage, I
found out that there are still a great number of things for me to learn and only through practice
by implementation of such knowledge will further improve me. Analyzing my own company
serves as a stepping stone for me to achieve greater heights. I believe that there are more
alterations can be made to my company’s SOP to further enhance its efficiency, it is only a
matter of time.

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