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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

TQM mobilises all resources by developing a culture of continuous improvement.

It is a system, which enables construction companies to fully identify the extent of their operational activities.

By focusing their activities on satisfying their customer.

Successful application of TQM in construction industry has increased its recognition as an effective method to improve quality and productivity.

TQM has two principal objectives:(1) Customer satisfaction(2) Continuous improvement

TQM is considered to establish standards, such as:

The International Organization for Standardization's ISO 9000 series.

TQM can be applied to any type of organization.

It originated in the manufacturing sector and has since been adapted for use in almost every type of organization such as:

Schools, Highway maintenance, Hotel management Churches

A principal focus of TQM is for each supplier of services to identify and satisfy or exceed their customer's needs in terms of:

cost qualityTime

The search for methods of completing a task more efficiently.

Measurement of cost effectiveness may also be used to increase corporate awareness and commitment.

This by showing the financial benefits accrued as a result of the TQM process.

TQM is an approach for improving values such as:

the competitiveness effectiveness flexibility of the whole organization

TQM is an approach to improve: way of planning; Organizing; understanding each activity that depends on each other.

TOTALQUALITY

MANAGEMENT(TQM)

IMPLEMENTATION

TOPPRIORITIES

1-TIME2-COST

3-QUALITY4-SITE SAFETY

Standardization'sISO 9000 series

PLANNINGPROCESS

PROCESS MANAGEMENTOR

MANAGEMENT SYSTEMPLANNING-COMMUNICATION

CONTROLLING -COORDINATING-TRAININGMONITORING

TOPPRIORITIES

1-CUSTOMER SATISFACTION/CUSTOMERFOCUS

&2-CONTINUOUS IMPROVEMENT

3-COMPETITIVENESS4-EFFECTIVENESS

5-TEAM WORK6-EFFECTIVE COMMUNICATION

ORGANIZATIONS

SCHOOLS

HIGH WAYMAINTENANCE

HOTELS

CHURCHES

ETC.

TOPMANAGEMENT

APPROVAL AND COMMITMENTTO

TQM

TOP CHARACTERISTICEXPERIENCE AND CAPABILITY

LEADERSHIP STYLEAUTHORITYINFLUENCE

GOAL COMMITMENTINVOLVEMENT

FORM TEAMS FOR TQMINTERNAL/EXTERNAL

ALLOCATED RESOURCES

PLANNINGPROCESS

PROCESS MANAGEMENTOR

MANAGEMENT SYSTEMPLANNING-COMMUNICATION

CONTROLLING -COORDINATING-TRAININGMONITORING

Job Satisfaction

3

Effort

P R O D U C T I V I T Y

Motivating Factors Hygiene Factors

1

Rewards 4

COMMENCETQM

2

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:

labour machinery materials 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 ofProjects Any 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

SCM

EstablishStandards

ContinuousImprovement

CustomerSatisfaction

TQM

OrganizationPlanning

Key PerformanceIndicators

(KPIs)

Flexibility

Competitiveness

Effectiveness

Front EndManagement

ProjectConcepts

DecisionMaking

High performanceLabour

MaterialsMachinery

etc

HighlyMotivatedworkforce

Financeproject

CommunicationInternal

CommunicationExternal

Front-endplanning

Politicalprocesses

CommunicationprocessOpenness Willingness

Projectmanager

ArchitectEngineers Quantity survey or

QS teamsEngineeringteams

Downward

Horizontal

Lateral Upward

Communication flowsSited-Smith and Cronji (2002)

1-downward2-upward3-lateral4-horizontal

Go to communication PPT

see Power Point164

for fulldetail

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