Question

Question 6

a. Using the example of brick laying in a construction site clearly explain the following:

i. Push or Building-to-stock

ii. Pull or Building-to-order

iii. Push-Pull Point

b. Define Supply Chain Management (SCM). List and explain some of the key benefits and challenges in SCM especially within the context of a Construction Manager.

c. What is Just-in-time (JIT) approach and where did it originate from? How does it help in the reduction/elimination of waste especially in the context of a construction project?

Answer 1

a)

i.) Push or Building-to-stock

• Push Process assumes the supply chain is proactive and built upon predicted demand. Products are ordered (or manufactured) prior to the actual orders and order volumes are based on forecast demand for an item.
• push processes are initiated and performed in anticipation of customer order.

ii.) Pull or Building-to-order

• Pull Process assumes that supply chain is reactive and based on actual demand. Products are ordered (or manufactured) only after the order comes from the customer and volumes are based on the real demand for the particular item.
• Pull processes are initiated on arrival of customer orders. So pull processes are executed when customer demands is known with certainty.

iii.) Push-Pull Point

In inventory management, the point where Push and Pull processes meet each other is called Push-Pull point.

b) Supply Chain Management (SCM)

SCM is a total systems approach to managing the entire flow of information, materials and services from raw material suppliers through factories, distribution centers and ware houses to the customer.

Advantages of SCM

Consistent Quality Assurance

Profitable growth

Working-capital reductions

Cost minimization

Improve Inventory

More Efficient

Improve Customer Service

Automate Processes

Challenges of SCM

Uncertainty

Demand forecasting and life-cycle management

Cost and performance management

Inventory and cash flow management

Peak management

Omni-channel

ICT implementation

Cyber-security

c) Just-in-time (JIT)

• JIT is a is an inventory control methodology that includes delivery of materials just when it is required and where it is required for the provision of the production processes.
• It is a pull system concept & a part of lean method.
• It minimizes inventory and increases efficiency.
• This method requires contractors to forecast demand accurately.

It originated in Toyota Manufacturing System (Japan) and widespread since 1960s .

In construction processes, inventory waste is generally the result of unnecessary stockpiling of materials due to over-estimating and over-ordering. But it can also include and lead to the unnecessary use of said materials, thus translating to a whole host of wasted effort, time, and material. JIT plays an important role in reducing/ eliminating waste associated with construction project by proper scheduling and receiving materials only when it is required. In this way it avoids unnecessary stockpiling and hence low chance of waste at the time of material handling. It also minimizes material damage and theft.