CTRL: Managing the Materials Chain

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CTRL Managing the Materials Chain
Mike de Silva Six Sigma Yellow Belt Presentation
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The Problem
Problem Statement Traditionally there is at
least 15 over ordering of materials in the
construction industry. Materials that are
purchased and not used are paid for at
procurement, and again at the end of the job in
divestiture to third parties or as waste. In
examining the materials management chain there
are opportunities to effect considerable cost
savings. Objective Reduce the cost of materials
management by 20 over the remaining duration of
CTRL Section 2 contracts with consequent cost
savings

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Objectives

• Presentation Objectives -
• Describe the current process
• Identify the critical Xs
• Discuss the data collected
• Propose root causes
• Monitor and control for improvement
• Vision

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Current Process Map
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SIPOC For Waste Management
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Root Causes
Work Processes
People
Lack of design integration/commonality
Inexperience
Operator Discipline
Units of Availability
Incorrect Allocation of responsibilities
Apathy
Poor Method of take off
Poor
Purchasing Limitations
Time Constraints
Lack of awareness-cost/Environment
Poor Planning
Unclear Drawings
Management Pressure
Short Cuts
Margins added on in series
Guess/bad knowledge
Volume of materials classified as waste are
too high
Unclear Processes
Ineffective Lessons Learnt
Preconceived ideas

Poor Sequencing/Interrupted processes
Poor Material Storage
Abuse of Materials
Lack of detail in Method Statement
No consideration of Quality
Work Instructions not available
Lack of Priority to Environment
Inappropriate use/size of plant
Design of Temporary Works
Time Constraints/Late IFC
Poor Planning
No consideration of Re-use
Short Cuts
Policy
Methods of Work/Construction
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Analysis of Xs

• 30 Xs identified
• 10 identified as Noise
• 20 identified as Controllable

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DCOM MODEL
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Behaviour Fluency

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Proposed Process Map
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Recommendations

• Training/tool box talks on Materials Management
• Increasing Waste Manager remit to Materials
  Manager
• More interactive process between Buyer, Engineer
  and Materials Manager at purchase requisition
• Consideration of incentives
• Centralised site asset database
• Incorporation of feedback loops in materials
  management process
• Create metrics which allow us to monitor
  performance and control the process

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Monitoring/Control

• Purchasing order to be supplemented internally
  with Materials Manager sign off
• Materials Manager to co-ordinate with store to
  ensure appropriate storage conditions
• Materials Manager to co-ordinate with Foreman to
  ensure that appropriate storage conditions and
  appropriate segregation facilities are provided
• Foreman to undertake reconciliation of materials
  ordered with materials in permanent and temporary
  works and that going into skips
• Materials Manager to reconcile materials ordered
  with materials in permanent works and temporary
  works with that going off-site for reuse.
• Materials Manager to monitor costs/volumes of
  disposal
• Environment Manager to determine KPIs on this
  basis

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Vision

• Taking 6-sigma beyond purely cost saving
• Better materials management is not just a Bottom
  Line saving, it contributes to the Triple Bottom
  Line
• Marriage of 6-sigma initiative and process
  improvements with sustainability in construction
• Immediate opportunities on CTRL
• Opportunities on future projects
• Better positioning of promotor in the market
  place through demonstrated commitment to resource
  management