Documente Academic
Documente Profesional
Documente Cultură
CONSTRUCTION INDUSTRY
Successful project management involves efficient management of project
resources such as materials and labors. Material management is focusing
on material handling and delivery.
This study looks into vendor-managed inventory as a potential solution for
reducing inventory problems at site. There is potential of successful
application of VMI in India but it will depend on the response of the
industrial players.
Vendor-managed Inventory is an inventory control system that shifts the
responsibility of taking care inventory at site to contractors. The first signs
of VMI were perceptible in manufacturer that used to reduce the cost of
holding inventory.
The objectives of this project are to study the inventory and its problem in
undertaken construction project and analyzing the potential of VMI in local
construction industry. Other objective is to investigate the extent of
expected barriers and benefits from the viewpoint of construction
personnel. Based on the survey, there are two major problem faced by
construction personnel including inaccurate measurement that lead to
wastage problem and site inventory records (spreadsheet application)
which tends to be flawed due to manual process. The survey shows that
there are few more steps for local construction industry to reach the
concept of VMI.
Finally the thesis reveals that lack of cooperative culture and increased
repeat business with the key suppliers or contractors has identified as
major expected barrier and benefit from viewpoint of construction
personnel.
A lot of survey and research have been done on application of VMI and
benefits on manufacturer industry. The scarce survey and research
conducted on application of VMI system on construction field. Why VMI
system still less applicative on construction industry? To answer this
question,
one
must
look
at
the
perspective
from
the
logistics
sizes, ground and subsoil conditions, access to site, and the proposed
project. The scarce literature conducted about logistics and supply chain
management in construction has mostly related to this challenge.
Meanwhile, managing the horizontal dimension is challenging because of
the large number of suppliers and sub-contractors in each project,
constantly
changing
production
locations,
characteristically
high
uncertainty and variability, and high freedom of each site to decide about
its own practices. Horizontal integration is an issue that is discussed more
in context of production strategies of multinational companies and less in
supply chain management context (Turkulainen and Ketokivi, 2006).
The lack of horizontal integration in construction companies can be
considered an important reason why the eforts to apply advanced logistic
and supply chain management practices in construction have often been
not achieved great success. Many successful pilots never been turned into
company-wide established practice because the horizontal integration has
been weak at the outset.
So far, there is not much research done to explore the applicable of VMI in
construction industry. One of the studied of application of VMI in
construction following is a must discussion section. This is because the
data gain from the case study is very important to convince that the VMI
suitable in construction industry. Let us proceed to the mentioned case
study below.
involved
in
local
construction
site
for
those
small
companies
which
unable
to
get
As
mentioned
above,
the
information
sharing
is
an
expected benefits, and the level of confident toward the potential partner
for implementing the system.
The above discussion is focusing on the expected obstacles and benefits
gain from application of VMI in local construction industry. This is the third
objective in this project that investigates the expected obstacles and
benefits from construction personnel perspective. The brief summary
comes next to end this chapter.
Summary
As a conclusion, the VMI system has been proved that helps to reduce the
holding of inventory at site. However, only the small items (bolts and
nuts) have been studied in detail. And the result show that the workability
of VMI system. But there is no study conducted on the feasibility of
VMI system towards the construction material (cements, formworks, and
steel bars).
Therefore, further study and research should focus on the feasibility of
VMI program on construction materials. This is because the implementing
of VMI system have been proved that can gain benefits in term of
reduce holding inventory and avoid unnecessary cost of managing
excessive inventory at site.