Electronic Construction Procurement System
1. Project Background &
Rationales
chapter is an overview on the
procurement system, the rational and objectives behind the project and the whole
endeavor. Project manager also displays the roles and responsibilities in
addition with planning description for electronic construction procurement
system. In order to increase the success over the system objectives, the must
be a well-organized and comprehensive documentation planning as following.
.1 Project Background
.1.1 Manager Challenges in
Construction Development Project
Construction management is a set of
guidelines and standards can be define through the combination of four major
mixture of activities in separate phases of initiation, execution, monitoring
and closure with the objectives of reduce the effort and time required for a
quality unique product.a construction project is a challenge of management over
nine knowledge areas and balancing the expectation of external and internal
stockholders. Besides, manager must be aware of the changes and their impacts
and necessary updates for other aspects of a running project.is one of the most
successful industries using project management standards and approach with a
relatively a high success rate in the number of projects and achievement. In
procurement process, manager should be responsible to execute and monitor
entire stages in procurement and sourcing a project. This can be start by gathering
supplier information and external sources to evaluate and eventually select the
most cost effective and quality set of suppliers according to project
specification and requirements.huge construction developments, procurement
manager should provide all raw materials and supply entire project, while in
limited scope projects this process may undertake by independent individual and
hence, project manager monitor progress through timely fashion reports (PMBOK®,
2008).
.1.2 Construction in
technological age
Construction is a 3.9 trillion USD
annually globally with accelerated growth; increase the industry size for a
large number of markets including plumbers, transportation wood and many other
industries (Barbara J. Jackson, 2010).to a higher level of complexity in
construction projects, main competitive advantage in current market situation
may be to reach higher degrees of effectiveness and timeliness over projects in
compare with competitors. Now days with all technological advancement,
construction managers is able to work on a web based platform and take the
advantages of tight control over all aspects of the project.
1.2 Problem Statement
in software development labor and
expertise dominate a significant part of the project and product development,
in construction projects, procurement is the main major portion of budget
allocation for overall project budgeting. Therefore, cost effectiveness
achievement in construction developments would result in a great saving and can
be translated as a competitive advantage in the whole industry.factor
encourages and justify for developers to be attracted in any tools and
techniques which can result in such huge cost effectiveness over projects.
Besides, development managers would like to have an effective direct communication
to suppliers and make it feasible to take raw materials with a fair price
through negotiation and buying techniques. Therefore, any system with major
marketing objectives can assist manager reduce the material price, increase the
quality over inbound and achieve a large amount of time cutting which can be
describe as total project cost reduction (Harold Kerzner, 2009).
“Electronic Construction Procurement
System” is a Web based commerce tools with effective marketing objectives and
aims to create value to target market in development industry.
1.3 Project Objectives
Electronic Construction Procurement
System like any other project, the main objective would be to stay on the time,
resource and quality of the major deliverables. As an individual project,
researcher is limited to information sources and a year time constraints
defined for a final year project. In higher degrees of achievements, project
can be maintainable and sustainable for further improvements and enhanced
future functions.
.3.1 General Project Objective
Basically, in this project lack of
direct communication between construction manager and construction industry
suppliers is the major concern. System would be capable of access to a wide
range of suppliers and their products with sufficient information and details
required for procurement managers in sourcing project. This is expected from
the project to deliver a new business model capable of handling business
processes in a higher level of effectiveness and efficiency. As a B2C digitalized
commerce tool this is expected that organization reaches a higher amount of
sales which can be translated to higher profit.Electronic Construction
Procurement System like any other project, the main objective would be to stay
on the time, resource and quality of the major deliverables. As an individual
project, researcher is limited to information sources and a year time
constraints defined for a final year project. In higher degrees of
achievements, project can be maintainable and sustainable for further
improvements and enhanced future functions.will create value through a
well-designed accessible platform contain all required information related to
products and functionalities required to create and support a sustainable
source of development supplier in construction sector. This is expected from
the project to deliver a new business model capable of handling business
processes in a higher level of effectiveness and efficiency. As a B2C
digitalized commerce tool this is expected that organization reaches a higher
amount of sales which can be translated to higher profit. Besides, ease of
management and higher level of integration would also apply to the company
after digitalization of the procurement.all advantages of efficiency and
effectiveness of direct communication and commerce in construction industry,
system attempts to provide a great range of functionalities through an
interactive platform for both managers and suppliers in an electronic selling
channel.
.3.2 Specific Project Objective
In addition with the objectives
above, system would be an effort to increase quality over projects through
evaluative tools of procurement items as the main sourcing project platform.
Specifically suppliers would have access to value provided reports which can indicate
industry trends and use as an input for strategy driven effort.
1.4 Scope of the Project
major objective is to facilitating
commerce of construction suppliers and gives the raise in services and offering
to developers and project managers. Therefore transaction validation and other
bidding issues would not be covered through existing purposed system and may be
an effort for system futuristic.
1.5 Study Limitation
.5.1 Project Constraints
According to nature of an individual
project and limited amount of resources, project and study was successful to
figure the relevant but not best set of requirements. Review on available
literatures and updated materials were limited to time constraints as the
nature of project.
1.6 Focus of the study
to domain topics and major
objectives of the system, researcher focused on the level of interaction in
electronic B2C platform and requirements of construction procurements in the
center of supplier manager relationship.
2. Project Plan
planning stage, manager should take
in consideration of setting a realistic and clear set of activities in a
comprehensive documentation according to project objectives. However, planning
should be always a subject to change and periodically review in every
construction project. From this point, project manager should be a powerful
change manager in result of any internal or external trend or changes in
project scope and specifications.
.1 Risks
explained in the PSF, manager should
get ready to face a certain level of risk in any project. Risk management
should be according to the likelihood and impact of the risk to the project and
output a risk registry well documented plan.to other projects, manager must
predict and prepare to reduce the risk and its impact indeed. Project risk can
arrive through various changes, improvements or external factors. Manager
should plan to identify and resolve higher likelihood events quick and
efficient.
2.2 Development methodology
methodology in procurement system
can prevent developer to face multiple expensive reviews over development
stages. A good methodology also gives a better alignment of project with
defined objectives and increases the level of outcome quality over
deliverables.are a number of methodologies can be used for this project
according to requirements and specifications. However, according to time
constrains and resource limitation in a final year project, Waterfall
methodology gives a better outcome and meet key targets with a complete
objective coverage over each phase of the development.is a clear approach for
system development and software implementation projects. Since a lot of
Websites developed as online software and applications, there is no wonder if
SDLC used in Web Development (Margaret S. Wu and Shih-Yen Wu, 1994).requires a
higher degree of support and maintains and SDLC would be a quality approach for
maintain based products. A part of support after system delivery would be a
comprehensive documentation with enough detailed explanation over deliverable
product.
.3 Schedule planning
management enables manager to check
progress over all phases of project and update as necessary to meet the time
deadline and resource availabilities. In this project, Microsoft project
management is the main tool gives visually of time and task from beginning to
the last stages of the project.
3. Company Background &
Structure
the market, “Akitechnique” interior
design products is a growing set of architecture sourcing of construction,
which provide a comprehensive set of services and additional advantages to
developers in Malaysia.recent years, company tends its focus through providing
a wide assortment of products and sourcing national based development in
Malaysia.
3.1 Company Mission and Vision
near one decade existing in the
industry, company mission is focusing on customer needs not only through
quality concern in product and varieties in size and range of items but also to
increase the level of services, delivery time, shipping and quantity required
for national developers. Company transfers its experience to all national based
projects and assesses the level of customer satisfaction providing consistent
support and consultant through best quality product and considering all ethic
issues in this relationship. Company aims to become a world player in
construction industry, in both private and public sector projects without
communication and geographically constraints. Organization aims to reach a
percentage of Asia industry market share and expand to one third of countries
to cover all opportunities with quality solutions.
.2 Organizational of Staff and
Company Structure
“Akitechnique” is a relatively small
organization with a manufacturer sector as the main operational segment.
Structure of company is simple as a top manager over operation, marketing,
R&D and sales department. General tasks such as recruitment and HRM would
be handling through executive director and top manager control the results.
. 3.1 - Functional
organizational structure
3.3 Departments
departments as it shown in table
above, uses a simple hierarchy structure through a functional organizational
structure. Since, company established one decade ago, still the scope of
internal resources are completely limited.
.4 Products and Services
mainly divided in two groups of
custom furniture and interior products. Custom furniture sector includes custom
cabinet, kitchen and wardrobe, kitchen appliances and fitting, office furniture
and products. Interior products include floor finishes, wall covering and soft
furnishing, light fixtures and sir purifiers.
.5 Sustainable Development
improvement and sustainable product
development considers a key strategically factor for the organization. As a key
market player and according to company mission and vision, keeping in mind that
“Akitechnique” cares to customer requirements and ethical and environmental
business factors. Therefore, no wonder that organization has a significant
contribution in building hospitals and other “quality sensitive” projects.of
the invested effort areas could be mention as minimization of wastage and
material consumption through flexibility of products according to orders.
Besides, company uses environmental friendly material to produce well
engineered minimum environmental impact items.
.6 Distribution Channel
physical channel is the only and
major selling channel for “Akitechnique”. However there is a low level of
technological and electronic engagement through an informative purpose website
which cannot support any commerce and marketing activity. Website has a
relatively low degree of interaction and minimum of functionalities without any
CRM tool or interaction enhancement.
4. Literature Review
.1 Industry Snapshot
following section describes trends
over construction industry through analysis of major financial elements and
industry key factors. These key factors include major industry contribution in
global GDP, spending geographical deviation and key success factors for
construction developments and projects.
.1.1 Construction development
industry
In 2010, the whole industry
experienced 1.6 percent growth and value of 6,077.6 million (Report Linker,
2011). This makes construction as a high level valuable industry comparing to
the other trade markets. The value is not only in the construction itself, the
industry give the raise to the other industries through direct and indirect
values and communication. For example in a homebuilding project which does not
carry a lot of complexity, there is hundreds of business which should get the
effect of the project. Plumbers, steel industry, transportation and even
government tax would be included in a simple construction project. According to
accelerated growth of population and economic rate in recent years, industry
faced to a rapid growth especially in Asia pacific nations like China and
Singapore.to global construction spending figure by Davis Langdon China and USA
have over 700 billion US dollar which indicates the increasing level of
development (Davis Langdon, 2011). Considering spending growth in global scope,
there is a shift of the rate from developed countries towards developing
countries.are varies of majors in construction industry which architecture and
civil engineering has its own definition of construction. Here, this process
may include making and assemble of any type of infrastructure. Beyond only a
single task, large projects in this industry can be consider as multitasking
and this endeavor should be manage by the project manager. Besides that,
supervision of construction manager is also vital for project success. Planning
considers a key activity for undertaking a project. Therefore, a successful
project must have an effective planning and accuracy of execution.project is
not only control through planning and execution and furthermore; manager should
know and balance the external and internal environmental factors and also
stockholder’s expectation. Resource allocation and supplement should be in a
convenience form in a project and don’t allow budgeting and scheduling
negatively get affected.term construction in general may refer to different
types of projects which could be divided to building and industrial project
types which are different from the way of planning, team working and
execution.projects can be renovation or innovation of the existing or new
project. The large percentage of the projects is those only aim to renovate an
existing one. Interestingly, the owner may act in different projects rules such
as planner, painter and designer due to the small scope of the project. Some
types of activities are the same for all construction projects indeed. Commercial
projects can be done through players in public or private developers and with
utilization of different approaches. According to the risk associated with the
projects, developers with more experience and skills may detail the entire
projects variable which controls the risk and impact of any new change for the
normal project process.must take the authorization for construction project in
legal form and also ensure that materials are easy to acquire in the site area.
Normally manager may calculate cost per meter for construction of project to
gets a more accurate estimation of the project budgeting. This number could be
completely different from area to area and based on the material quality and
the construction type according to customized order projects.project in an up
to dated form of definition can be the conversion of a design to the form of
reality through a well-organized planning and execution. A design team would be
assigned to plan and integrate planning team together in a project. The outcome
for design team would be drawing and may include the required attributes of
civil, mechanical engineers or other expert groups. Basically in a private
project, all human resources acquire by the project owner. This also can have
the form of bidding in which the most cost efficient developer team would take
the award from the owner. Now a days, a construction firm may have experts in
varies of fields and this gives a raise and higher degrees of competitiveness
to such organizations attempt undertaking different types of projects.
According to the higher complexity of the construction projects in today’s
infrastructure and market needs, building engineering provides a certain levels
of training for different project phases along the technical team and manager
task to increase integration and awareness over complexity hidden in the
project.
.1.2 Development spending
growth
Spending in different nations for a
constructive project is a key factor assist researcher to analyses the level of
national contribution and industry development. Below figure is a clear
description of 13 main and major developed and developing countries in
construction.
Figure
4.1 - Share of Construction Spending Growth
There are 3 types of trends in
construction spending which researcher categorized countries according to them.
First group had intensive growth over construction spending in projects align
with national basis objectives. China and India will locate among above ten
percent growth nations in 2011. Some countries like UK and Korea didn’t face
significant amount of growth and some other like Italy just had a relatively
smooth decline in their spending. However a country like Spain according to its
social factors had around ten percent decrease for the value of construction
spending.attributes and elements in a development project should be considered
by project manager. A large number of such factors are related to procurement
and its significant share of budget allocation for construction developments.
Poor planning, forecasting and estimation of cost and resource are other major
factors with huge impact on construction project.projects become larger and
more complex, the level of integration should be increase for managers.
Otherwise, there would be increasing backlogs and the risk of over budget or
overtime delivery executive.other key factor for industry analysis and overview
is the share and its transformation from developed to developing countries.
Figure
4.2 - Share of Construction Spending by Development Status
it is indicated through above figure
developing countries like China and India and also Middle Eastern region
countries are transforming their share in construction industry from around 28
percent to more than 50 percent. The reason is because developed countries have
already required established infrastructure and they don’t need to spend on new
development. Therefore, government may focus to spend in the other parts and
areas which might be more beneficial for the national economic growth.
4.1.3 Procurement market trends
Based on the unstable condition of global
market and industry due to economic and political factors, risk of price
fluctuation is crucial concern for each project. However, managers would cover
additional cost through marketing in a higher selling price.
.1.4 Construction and
Globalization
Current development trends in the
Asian countries may lead us to get some new fact in construction industry. Now
days there are more powered and stronger finance in construction projects
belong to private sector. These types of companies are focusing the effectiveness
and efficiency through right and high level of integration especially in
vertical type. The advantages of such integration may obtain through integrated
supply chain management and other sourcing system or management information
system facilitators. Result of the technological and theoretical improvement of
construction industry makes it more practical for foreign players and their
effects in domestic market.countries like Japan brought the technological
advancement to entire global construction process. Hence, most of the
developing countries took the benefits and increase the competitiveness for
their running projects.to unlimited capabilities of technological enhancement
industries are not limited to geographical scope. Suppliers obtained a greater
chance of exporting material to different countries and through facilities of
communication and additional online information for potential customers. On the
other hand, projects also are not limited to team and location limitation. For
instance, there are a lot of projects which should be done through resource and
effort in separate and independent geographical location.in the worldwide
economy, HR, ICT and management happened in construction industry growth and
global management of the projects pushes industry to form globalizes indeed
(Stephen O., Chotchai C., Pannapa H. and B. H. W. Hadikusumo, 2004).the last
decade, globalization have affected the firms expansion and
internationalization of the industry of construction and real estate and varies
of project processes are dealing with no limitation in geographical
constraints. Especially in sourcing the project, it becomes a norm to diverse
over cost effective and more reliable set of procurement from different firms
in the world.are several elements such as technological advancement (online
project planner toolls e.g.) and transportation development wich cause such a
trend give value to construction industry. Easy trading and taxation,
facilitate rules in commerce and legel attraction laws gives this opportunity
to local firms going beyond existing expansion and serve multi location
projects across the world.globalization shold be cconsider and measure through
appropriate measurement factors. In each industry globalization has 3 diffrenet
task and phase. First type is the international trade for items and procurement
which is provided by different manufacturers. Second type refers to cross-
border investment for all products and services and distribution channels with
elements of supply chain in construction industry. The third one is the
portfolio of capital invested in the market to avoid any risk and negative
circumstances.are also some issues in the industry globalization which a number
of researches have been done about them. Raftery et a!' (1998) have analyzed
over trends in current market and had the main focus in some specific region in
China and Japan which had result to some important findings. There are stronger
and larger players are roling the infrastructure in the national basis.integration
in the cosntruction sourcing specially the phase of procurement and forms of
packaging and transportation have been formed.Besides, there is a growing trend
of foreign players in the market and industry comparing with the recent decade
which increase the level of competiton with the existing local players.
Therefore, and according to the analyzed research there is a tendecy to
deregulation of construction industry which can be a sign of globalization and
significant descrepency with traditional businesas approach. This trend cause
the financial and technological efficiency of the market raise and give the
raise to other aspects of the business effectiveness.considering technology in
developing countries and construction projects, there is a transfer of technology
and enhancement in result of advancement and knowledge gained in other fields
of scince. Industry should have concentration over improvement in other areas
as well such as procurement, management and approach, methodologies and etc in
both public and private sectors.to the merger and acquization growing
strategies, many industries now have a trend with the tendency to become major
player in the field and compete in a more sustainable position relying on
larger scope resource and company capabilities. Construction industry have the
same growth strategy for those who are looking to gain a better market and
benefits and increase their interest in a wider scope and focuse., for many
firms like Private Finance Initiative (PFI) projects in the UK the strategy was
based on increase the size and gain the larger number of projects according to
their larger capability and for example PFI had stronger financial indices in
compere with the past. Biggest players in international market belong to US and
Europe. Table below indicates recent rank of construction contractors according
to global revenue.
Rank
|
Country
|
Company
|
International
Contractor project value
|
1
|
USA
|
Bechtel Group Inc
|
7.442
|
2
|
UK
|
Kvaerner PLC Group
|
6.54
|
3
|
Sweden
|
Skanska AB
|
5.984
|
4
|
France
|
Bouygues
|
5.007
|
5
|
USA
|
Kellog Brown & Root
|
4.721
|
6
|
USA
|
Fluor Corp
|
4.669
|
7
|
Germany
|
Hochtief AG
|
4.402
|
8
|
UK
|
Bovis Lend Lease
|
4.113
|
9
|
France
|
Vinci, France
|
3.6
|
10
|
Netherlands
|
Hollandsche Beton Groep NY
|
3.407
|
11
|
France
|
Groupe GTM
|
3.162
|
12
|
Germany
|
Bilfinger + Berger
|
2.514
|
13
|
France
|
TECHNIP
|
2.503
|
14
|
USA
|
oster Wheeler Corp.
|
2.24
|
15
|
Germany
|
Philipp Holzmann AG
|
2.1
|
16
|
UK
|
AMEC
|
1.958
|
17
|
Sweden
|
NCC
|
1.76
|
18
|
Japan
|
JGC Corp.
|
1.729
|
19
|
Korea
|
Hyundai Eng. and Const. Co.
|
1.633
|
20
|
China
|
China State Const. Eng. Corp.
|
1.545
|
it shown in the table a large number
of biggest international contractors in construction industry are those
American and Europe nations which mainly enlarge their capability and resources
through merging, acquisition and other growth strategies which make them get
ready to undertake very large scope projects in the global scope.the conclusion
construction is a growing fast paced industry towards deregulation and
competitive strategically actions in the global financial and economic system.
Although industry have a big trend, since construction cannot be traded across
borders, the impacts of this shift and transformation of industry toward
globalization is mainly obvious in the international contracts and
communication related to industry.methods in development companiesare two
different models of sourcing a construction project according to the type of
required item and customization level for each item. Centralized units are in
source or outsourced centers, departments or organizations which would be responsible
to find source of suppliers, evaluate and purchase required material for
project (Alberto De Marco, 2011).This is required more effort to get more
efficiency and cost effectiveness. Therefore, this is a more suitable approach
for bulk material purchase since there should be a level of communication and
negotiation to save project procurement cost. A centralized unit can feed
numbers of projects at the same time.
Figure
4.3 - Centralized Procurement Unit
, some items should be customized or
purchase in lower numbers. This would not be cost effective if management
directs time and effort to this project. For this type, managers should
directly connect to local sources of procurement and cover additional cost with
increase last price according to the level of customization.
Figure
4.4 - Decentralized Procurement
bulk items there is a significant
time and cost required to get the efficiency for a significant part of budget.
Instead, local purchase in decentralized system is not efficient. Besides,
centralized approach is required to inventory area and management and could be
happen with higher speed than decentralized approach. In fact, centralized unit
is a suitable model which can be enhanced through using technological and
digital advancement.combination modelit was explained, for each type of
procurement unit, there are a set of advantages according to required item and
level of efficiency for purchase amount. If a company wants to reach benefits
of all models, this system should be capable of flexible purchase according to
purchase amount.new model delivery time is the main factor which is tightly
related and dependent to the overall efficiency in construction project. New
system can handle both customized and bulk items to get maximum efficiency
required through just in time order and item delivery.
Figure
4.5 - Combination of Centralized and Decentralized Procurement
Procurement stages and stepsof
procurement process is like purchase behavior process in single B2B
relationship and simple pre-transaction set of behavior. First stage developer
should send request of purchase to get as much as possible invoices related to
required fields. In next step, there should be an investigation stage to find
related potential suppliers. This is the time that procurement manager should
send the bidding request to encourage competition among all available
suppliers. After recieveing all bids and offers, manager should select the
suppliers and update database if supplier is new to our database (Fisk ER,
2003).general information flow of the procurement stage
Figure
4.6 - General Information Flow of Procurement Stage
agreement should be include of all
required bidding details with the most clear perspective including shipping,
delivery, warranty and other required confirmed details of transaction. This
agreement would be then a part of important procurement documentation which should
be deliver to financial department and also cost control related areas in the
organization.
4.1.5 Procurement Processes and
Tools
Procurement considers one of the
main parts in a construction project. In this phase, project manager have a
primary outline of what should be sourced into the project. Next stage for
project manager is to clarify from which source information should get
obtained. Varies of records would be then utilized for selection of the best
choice and combination of suppliers in which project management or recruited
agent get ready for negotiation or bidding.to main objects of the project in
timeliness and being cost effective, management should provide a list in which
approved set of suppliers are available for all current and future project. Of
course the entire list would always be a subject to change. Means that in the
case a supplier increase its level of delivery or improve contribution to
project cost effectiveness could be used in future development projects by
manager.has been an option for construction developers to digitalize the ASL
and remove redundancy over suppliers. This gives them also better chance of
sorting and evaluation of existing vendors.
.1.6 Cost control for
developments
Company should be concern of the
elements and factors which can negatively affect the overall; budget and time
required for the project. For instance in the first stage of establishment a
construction project, lack of reliable estimation and resource management,
resource allocation and prioritization of entire WBS activities can easily harm
the project outcomes. Management should avoid some popular paradigm in cost
cutting. For example, reduce required budget may decrease the cost of
activities in the first glance, however the effect might be on the quality and
time of deliveries and outcomes.the execution phase in construction projects,
manager takes some activities as control over cost including procurement
variance analysis through consideration of discrepancy between planned cost and
actual spending for raw materials. This is crucial to make judgment according
to analyze the cause of the difference and take the best solution to minimize
these negative trends.all above could be ended in consideration of internal and
external influencing factors in addition to figuring out the most appropriate
strategy. Analysis and comparison must be undertaken without any delay. In
transaction negotiation stage management should keep in mind to clarify all
aspect of the bidding with entire required details. Vague specification may
take into the advantage for some suppliers as they could deny benefits of
developer from transaction.are two different strategies for controlling cost of
procurement in a project. Corporate procurement strategy is the dependency of procurement
activities to organization and its objectives. Project procurement strategy
would be more concern to the relation of procurement activities (such as gather
information, evaluation, selection and bidding) and internal environment of a
project (Harold Kerzner, 2009).
.1.7 Purchase process and
evaluation
Negotiation is a personal skill
which is required for all procurement managers and agents as a major key factor
in efficient outcome. There are different objectives for negotiation beyond
just to reduce the cost of purchase to minimum and take the advantages of a
better pricing. Negotiators are looking to transfer the risk of transaction to
the other party as much as possible.other objective could be to receive more
and higher reliable set of services beside the required items. Warranties and
transportation are very important for managers and a portion of effort in
bidding must be spent to clarify these factors.
Figure
4.7 - Negotiation Processes
includes some stages as the
following figure, which outcome the agreement as a major documentation in
project delivery documentation. These activities starts through an introduction
for finding and agreeing on a basis common interest and should be end by
details documented in the final agreement.factors of evaluationof the major
factors in evaluation is to clarify all responsibilities and roles of both
parties contribution in bidding. This is also required for procurement manager
to set methodologies and standards of sourcing project and agree on the exact
price for major raw materials in each purchase or bidding (Ferraro, Gary P.,
2002).
.1.8 Applications in sourcing a
project
Application in sourcing of
construction project facilitate for manager to have a consistent and borderless
access to procurement products and their suppliers from site office or any
other area. In addition manager can have a fast and efficient access to updated
details such as price as well as communication or transaction itself when
approved.procurement system is also capable of generating some value
information in the form of decision support reports for managers and supplier
industry players itself. Financial procurement control provides a tight
monitoring atmosphere for analysis of discrepancy of estimated procurement cost
with actual spending for each specific (George J. Ritz, 1994).
.2 Construction Project
Management
over construction projects includes
all divisions of pre project activities and in addition with required set of
execution and closure activities. There should be also more concern to external
factors in logistic, legal and other industry attributes.
Figure
4.8 - Organizational Chart-Pre Construction Phase
is the major reason which makes
manager support the other levels and provide enough credibility to empower team
working and reaching key targets. Project engineer should be aware of
estimation and timeliness required for all activities. He should also be master
in change management and impact analysis required as the result of improvements
and external factors.
.2.1 Project Management and
Procurement
Project Procurement Manager Rolesit
was figured through analysis and revision in procurement approach, this is
crucial to categorize project according to scope, size and major specification
before selection of the right procurement method.
Figure 4.9 -
Project Procurement Manager
Procurement manager could be agents,
in home or outsource departments which are responsible to undertake the data
gathering, evaluation and selection of the best sources in the market and
industry.large scope construction development, there is normally a center of
procurement cost and quality control called QS (quantity survivor) which
attempts to reach higher degrees of overall project performance.cost controlin
construction consists of purchasing process for products and services with two
basically objectives. First is to create new construction including the site
and entire associated sub processes. Second objective have focus on the phase
of maintains required for the execution phase of the project.management to get
the best performance and result from services in the market, the best approach
is full involvement of the client in entire stages of the business. A
successful project is meeting the objectives in time, cost and quality as it
was defined and agreed between the firm and client. In procurement stage, there
are a lot of task and attributes which may have a huge impact on these 3
success factors in the construction project.in a construction project is mainly
dominated through the elements of procurement and human resource required for
the project. Not similar to software project which have dominated budget with
human resource, construction projects have the main budget allocation to
sourcing and required items. This made the cost control topic one of the main
concerns for managers to reach a higher level of competitiveness and
effectiveness.challenges of cost control in a construction project for
management of the procurement department would be to reach a reliable and
accurate estimation and best evaluation, selection and bidding over required
material in a project. As it discussed in the previous sections, negotiation
process for procurement would be successful when the result form an agreement
which represent a win-win situation.of the time manager should overlook the
resource selection and allocation to ensure the project is cost effective in
compare to similar specification developments. Sometimes, this would be a tight
control over cost associated for each single resource which might affect the project
outcomes negatively.in procurement cost is a very effective way in project cost
reduction since a large portion of budget is dominated by sourcing
construction. Regarding this factor, delivery time is an important point to be
noticed when manager select and evaluate supplier in bidding process.also
considers an effective way to reduce cost or improve quality. Basically manager
should spend more time and skill to get effectiveness in bulk items such as
concrete, metal and frequently using items in construction buildings.
4.3 Business to Customer
Relationship
decades have more focus on the level
of relationship strength rather than short term sales objective. Now a day’s
business should care to sustainability factors and increase the level of
reputation among the competitors to remain safe and successful in such
competitive and effective business market relationship.cyber age in the
beginning of the 21st century, B2C relationship becomes an applied topic to
major industries. The B2C relation considers a powerful tool to create and
achieve a better relation and effectiveness for exactly what is needed between
two business parties.to the concentration of today’s management on the
utilization of technological tools and up to date approaches, there are several
trends and transformation for construction industry which form a competitive
methodology and increase the sustainability in current market. Centralization
of customer data and increase the power of information generation over existing
form of decentralized data gathering can assist business to reach information
which should be involve in the selection of strategically offensive or
defensive movement in front of competitors. Segmentation of customers and
target groping of potential unreached market is also a crucial way of saving
cost and effort over communication required in the business. This clustering
approach make the communication reach maximum of effectiveness and responding
action. Therefore, after segmentation the service focus must be on the highest
value customers and try to make them retain in firms share. The clustering
approach gives the firm opportunity to lowering the cost of relationship and
spends the rest of money to find more customers and increase its customer
base.wonder industries faced to a higher level of adoptability, revenue and
profit. Tools enable firms to communicate in a more effective way and without
geographical barriers and time constraints. The effort required for such
relation was less than traditional approach and quality increased for major
industry rivals. System empowers firms to communicate and link old suppliers in
a better and efficient ways in addition with lowering the cost and hence, for
large firms this kind of saving, may reach to millions of dollars (Anon., 2006).
.4 E-Commerce and Industry
Tools
Electronic network raise the
business opportunity to ignore constraints of traditional commerce in today’s
market. In a perfect commerce platform, tasks and activities would be reviewed
and presents through a fully integrated commerce system and therefore, there
are some key features to fulfill this commerce set of objectives.
Figure
4.10 - Marketing and Industry Tools
4.4.1 E-commerce and
procurement
Digital Procurement Modelof
procurement system on business cost and time consumption is a justified
argument for today’s business in competitive industries. Especially in large
items this type of cost saving considers to be more a necessity rather than
being a choice. Table below explained the advantages and value elements of
procurement system to a normal scope project in construction sector.
Sytem value features
|
The advantage area
|
Record keeping
|
Time and cost saving
|
Supplier evaluation
|
Efficiency
|
Selection of best vendors
|
Standardization
|
Linkage and negotiation
|
Best relation and result
|
Support documentation
|
Accuracy
|
Timliness
|
Prevent overtime outcome
|
5. Research Methods
.1 Research Organization
well-organized data gathering tool
selection should have the outcome including sufficient and reliable set of
relevant and required data. Then in analysis stage, business requirement
analysis should be conduct to reach the most close customer satisfaction for
the final output.are several phases for researcher in data gathering need to be
undertaken carefully as following.
Figure
5.1 - General Steps of Research Organization
each stage, manager should monitor
and control over accuracy and relevancy of the key target achieved. This is
crucial for manager to ensure the selected tools are completely justified. This
means that there must be a set of requirements in system and projects which is
better fit to one or more methodologies. Manager should also consider the
effect of external factor to the results of research. Some factors may cause
bias and change or mislead the result of the approach.
5.2 Choosing suitable method
varies of available data gathering
approach, not any method is appropriate for construction system. Each technique
has a set of advantage and disadvantage which make the project reach different
degrees of requirement. Therefore manager must find the best mixture of tools
and techniques which response the specification and uniqueness of the endeavor.
Interview for instance is a good method according to it higher degrees of
reliability. On the other hand questionnaire would be a cheap, quick and easy
data gathering tool which has better and faster analysis. According to time and
resource constraints in student projects, researcher needs simple planning and
quick techniques (Jimme A. Keizer and Piet M.Kempen, 2006).this project, there
would be one interview with development project manager to derive the system
requirement in terms of functionalities of a B2B business. The rest of the
requirements would be gathered through the design and implementation of
interactive interface according to user preferences.
5.2.1 Collecting primary data:
Interview
Interview is a very high reliable
qualitative tool appropriate for explanatory projects and detailed
requirements. Procurement system requires a set of narrative data about the
difference between the standards of sourcing a project and what is practicable
in the current market.can take the opportunity of describe business model and
market without any involvement in writing. Besides, interviewer should ask for
more details regarding the vogue answers to make all findings as clear as
required.objectivesquestions have been set according to the objectives and
requirements of the procurement system. Major objective of the interview for
this project is to find out required details of current business model in
sourcing construction projects. Therefore manager were asked about the gap
between planned and actual time and budgeting of the procurement and key
challenges of project sourcing.out the objective division for procurement
manager interview, the objectives can be divided into the areas such as Level
of engagement of the process in electronic enhancements and tools, required
purchase details, Risk management, Customization, Time constraints and Entire
planning activities in procurement.
.3 Research limitation
to the nature of an individual final
year project, and based on the time and resource constraints of the effort, the
outcome may not be close enough to the real set of user expectations.on the
time, budget and resource constraints of the project, manager would not be able
to gather primary information from all relevant users and developers in
construction industry. Keeping in mind that managers and industry players in
construction industry are not easy to interview. They are busy and their time
has real value in working hours. However, according to higher reliability of
interview in compare with other tools, gathered information would be sufficient
to fulfill entire academic propose.
6. Analysis and design
.1 Procurement Manager
Interview
.1.1 Respondent Interview Impression
Respondent had the feeling and
willing of taking apart for exploring the details of interview. There is a
great opportunity for procurement manager to describe key challenges and risks
of sourcing a construction project. He also aims to enhance the process of
procurement according to the practical experiences and current gaps in the
whole set of activities.
.2 Interview Questions
Question
|
Objective Area
|
Please explain in details how much is your
planned and actual procurement costs are aligning together?
|
Estimation Process
|
How much project procurement engaged
digitalization?
|
Level of engagement
|
What are steps in the procurement processes
you are currently using for project sourcing?
|
Process
|
In a common procurement process what are the
required activities should be done?
|
Steps
|
Do you think that electronic and digital
supply system can change the balance of transaction risk?
|
Risk Management
|
How can you control the price of customized
items?
|
Cost control
|
A summarized management challenges over
development
|
Major Challenges
|
6.3 Primary Feedback
Requiremnets
|
Description
|
Organization name
|
Akitechnique
|
Respondent
|
Mr.Rashid bin omar
|
Respondent position
|
Procurement manager
|
Interview Method
|
Direct Face to Face
|
Date and time of interview
|
01/28/2012 at 2:00 pm
|
Please explain in detail show much
is your planned and actual procurement costs are aligning together?, for every
project in construction field, this is almost not possible to reach the time
and cost key targets for more than 90% projects. There are a lot of variables
in procurement and project sourcing which affect the result of project
outcomes. Material price fluctuation and delivery time considers as the most
important and influential among them., in planning stage there is always a
percentage allocated to these trends of time and budget. This is what we call
variation order (VO) which could be set around 5 percent of the overall
budget.much project procurement engaged digitalization?only electronic platform
have been used in the organization is the informative website which does not
carry any functionalities. Therefore, the single channel for selling procurement
and communication is still the physical one. We have transaction with internet
and our own agent to increase the sales and profit. But we still work with a
traditional business model.are steps in the procurement processes you are
currently using for project sourcing?are following the direct seller
communication. According to what BQ department figure about the level of
procurement quality, items would be selected and communication should be form
with the other party. Here the participants are seller and buyer which may
include middle men for shipping item when the delivery time is tight and under
management consideration.emergency items or highly customized requirements,
trading company may send an individual to provide through the local market. This
cannot happen for bulk items and there are some restrictions of such type of
purchase. Normally the permission should be given through the senior
management.each project we are supposed to deal with hundreds or more suppliers
and when we want to order something we will make a call to related specific
supplier. There is no tight controlling on raw material price when a project
needs to deliver output in the constraints over delivery time. However,
materials in most of the areas have specific and standard prices.the market
most of the developers have a contract to deal with supplier centralized units
which are mainly concentrating on the project sourcing and procurement.
Sometimes these companies should undertake to maintain the quality in a certain
and specific degree.a common procurement process what are the required
activities should be done?are some important attributes in the sourcing process
such as standards of the material, delivery time and pricing. Major services
such as warranty should be also considers as an important purchase factor.
Besides, the quantity also considers an attribute with a lot of effect on the
price and level of services. Obviously, larger scope purchase would be more
cost effective and service oriented purchase.you think that electronic and
digital supply system can change the balance of transaction risk?amount of risk
in the transaction is tightly depend if what is the purchased item so when you
buy material from China for instance, manager should be more carefully due to
lack of quality in most of their production. Actually China is following the
worst standard in the world. Their products are quiet worthless and low
quality.what we should do in transaction is to share the risk of purchase
between seller and buyer. This is the equal risk acceptance from both
parties.can you control the price of customized items?main policy is not to go
for customized products. For example we are trying to make construction
according to popular market products and don’t take the risk of customization.
These types of products are very expensive and besides, there is no substitute
if something happens for these products. For example most of them just produce
for a relatively short time in manufacturers. Items have eventually a short
lifecycle.summarized management challenges over developmentdevelopers have a
complexity and levels of barriers due to pressure of project supplement. There
is always required to purchase hundreds of items and not all of them would be
on time and meet the deadline of project millstones.company we are not allowed
to purchase without following the governed rules and restriction over
procurement and thus, this would take a lot of time for organization to reach a
certain level of progress and buy entire required items.are able to provide
very cheap material with the lower degrees of services. Therefore, we don’t
take the risk and contract with a centralized unit to ensure all services
provided are quality and in time. Because we should maintain the quality in a
certain level and sustain in the market.
7. Analysis & Design
.1 Interview Report
is a high rate of 90% unsuccessful
project in terms of staying on the defined budget. Means that major of
construction companies would almost always over budget and the main reason is
related to the attributes of procurement such as price, delivery time and
quality.other procurement risk such as price fluctuation and logistic are also
contributing as the failure factors in construction developments. For this
purpose, variation order must be apply for procurement items which are normally
by the rate of 5% of budget defined.headquarter of development companies, they
use internet channels to reach some informative propose and unlike selling
channel this would be according to major marketing objectives for long term
growth.must deal with the centralized units which are responsible for providing
procurement and required items. Developers try to make the quality consistent
through the quality department in such centralized units. Besides, they would
take the responsibilities of all purchased items.control in procurement is a
part of BQ (Bills of Quantities) department which is the only center which
tracks the attributes of ordered items. This is where suppliers would be
evaluated according to the price, quality, service and delivery they have
offered. These elements can be considered a kind of standard applied to the
industry., urgent and customized items should be acquired through local
shopping. Therefore, centralized unit is playing a major role in procurement of
multi projects because number of suppliers and specification of items are
important when make complexity high.to interview, Certification, cost, quantity
and quality are major factors which should be provided for developers in
private and public sectors. Delivery time based on the impacts on the project
outcome, considers the main factor in this area and hence, manager have the
special attention to timely suppliers.terms of customized products, and
according to market demand, developers try to design the popular products to
avoid customization. Project manager have high range of complexity to deal with
the procurement and this might affect the quality and services which could
increase organization competitiveness.
7.2 Analysis Summary
to discussed challenges in
development and supplier challenges in construction, efficiency of supplier
business in relation with their customer is tightly dependent on the level of
effectiveness and tools or techniques for their communication. Physical channel
obeys the traditional rule which does not carry any competitive advantage in
today’s market. Therefore, an interactive usable cyber platform with the
objectives above only informative activities and awareness could empower the
existing communication which then can be translated as reaching higher degrees
of success and becoming a major industry player.
8. Environmental analysis
.1 Dealing with competition
(Porter’s five forces)
this research, the whole
construction industry has been analyzed through porter’s five forces as an
effective external industry analyses tool. Porter has divided the industry
trends to five major forces which are included buyer and seller power and
industry rivalry and competition forces.this analyze, two major players in the
industry are suppliers and project managers which can be private developers,
homebuilder companies and government programs and projects. This relationship
determines the balance of power and industry trends which currently forms the
whole aspects of businesses.
planning company mission
market
8.1.1 Supplier Power
There are different factors in
developer-supplier relationship which affect the balance of power towards
increase or decrease of supplier power in construction industry. In this
market, construction sources get the power through become more integrated and
union, when the number of sales item and amount of each is more significant for
customer, differentiate items and create enough hooking power and switching
cost for the existing customers and new comers.there are only few good
suppliers in the industry and there is growing demand over procurement
material, and also there is a high switching cost for existing customers, then
suppliers would have a greater power and can reach their short and long term
financial objective and increase their customer base easier. Especially when a
supplier has a tight control and effect in the market price, its flexibility
for making market trends would be more and more.everywhere, industry of
procurement in construction is completely fragmented and this is not usual for
them to become a powerful union. Therefore they would try to compete and cut
the price as much as possible to sustain in the market. This would be a barrier
for them and the opportunity for developers to go for cheapest and service
guaranties in each particular material.of the main concerns for management and
market key trend is the purchase volume. According to the nature of projects
which is mostly high scope for construction material purchase, developers usually
are required to buy in bulk for those necessary required items. High purchase
would be negatively affection factor for suppliers which may force them to
providing more varieties of services in the industry. Customers in this market
have more information and are required to spend enough time and investigation
before purchase and its evaluation.land, homebuilders are required to purchase
varies of materials defined at the beginning of project. According to the
standard market for some of these items, the price may not be negotiable for
managers. For example oil and gasoline are those required standard price
materials which can be assume as the project fix cost. However, there are
certain materials which the price have been set through suppliers and can be changed
out of government and public policy. Some regular cost cutting ways for home
builders include gaining better bids when buying in bulk, acquisition of
cheapest labor and more expensive managers and expand the geographical access
to overseas market to take better price and services.which consider as industry
suppliers have a relatively low profit margin. For them, this is crucial to
have an accurate and reliable estimation for all resource required for a task
or a project. In the case of neglecting of right estimation, they may face to
project failure and loss profit or their own investment. This case sensitive
situation make them to get weak in front of industry customers and their power
is low for their customers in public and private sector.significant part of
budget allocation would be set and estimated to human and expertise resources
in a construction project. Those with high skill and capacity which are
involved in a project are relatively expensive for managers to hire. According
to the rapid growth of construction and increase the demand for skill in this
industry, in some countries, industry faced to the shortage of human resource.
This powerful force in industry may increase the labor cost for human resource
and expertise required.
8.1.2 Buyer Power
Currently in almost any country,
there are banking packages and finance facilitators for home and real estate
market. This makes average people to get into purchase more easily and demand
for new developments would increase. Those customers are looking to buy large
development projects and also have low switching cost to go for competitors,
have a higher power over developers, especially when market is fragmented and
saturated by development side.market is also fragmented in this industry, means
that each family would be looking for the cheapest price. In private group of
customers, this is not routine for customers to become a union for purchase a
larger part of the product and get more power over suppliers. Because they are
looking for more personalized and customized factors in the development.have
constraints of access to vary of geographical locations and their huge
switching cost. For example families have to be near children school and their
own workplace. Therefore, this makes them remain limited to the certain region
market and products. Although the switching cost for buyers is relatively high,
there is still the opportunity to rent an apartment or home in any required or
selected location. But as real estate considers an investment with a relatively
large scope, there would be so much switching cost for owners of the
apartments., according to the growth of population and economic in recent
decades, an intensive growth in market demand in addition with immigration
makes market to have greater and more reliable potential for serving customers
with new and customized products in each economic and social segment.
8.1.3 Barriers to Entry (Threat
of Potential Entry)
Any new comer in an existing
industry aims to get a high amount of market share to sustain in the industry.
Since demand for product is not affected positively through number of suppliers
and industry players, this would be a fact for existing players which they lose
their share to new comers in result of this movement.to discussion above, new
comers are a big threat to an industry without significant rate of growth.
Industry entry barriers makes industry secure of facing intensive competition
and also may prevent new businesses which aims to get share in a short time.
Some factors including the economics of scale, the level of differentiation in
products, start up and switching cost and also entire restriction over industry
governed by public sector would significantly affect the construction market.
These forces change the balance toward or against developers within industry
and its players., construction projects are required a significant rate of
investment and this can be a natural barrier for those who attempt taking
industry share. This amount of required money sometimes for huge projects may
reach to billions of dollars and not an average company can deal with such huge
barrier. However a lot of people may be able to invest in smaller project and/
or take the partnership benefits in collaboration and team working with smaller
development companies.with the required capital, a certain level of knowledge
and expertise is also required for those wishing to enter construction market.
This phase of requirement also would be expensive enough to consider as a
barrier for those new comers. For such projects, manager should supply the
initiation with a large enough appropriate legal land with acceptable condition
for development. All these requirements increase pressure over new developers
and may keep market away from rapid saturation and new comers.addition with all
mentioned factors above, government rules and restriction may control new
comers and filter market for constructive projects. For example zoning rules
and difference must be considered before through government and developers to
get align with pre-defined objectives of urban infrastructure.
8.1.4 Threat of Substitutes
Thereat for substitute products
refers to the switching cost associated with customers and customer attitude
and selection over products features. There is always alternative for customers
to rent an apartment to get rid of purchase risk and difficulties. However,
majority of customers prefers to have this type of investment and buy their
customized apartment and get stability they need in their life.government rules
and restriction for loan services related to those developed and developing
countries almost make majority of people to have ease of purchase and even the
right to go for best development through banking facilitates. Especially these
types of services are available for first time buyers which enable them to own
the apartment and home and pay through installation. Therefore, there is less
intention for people to get the risk of rental and live without required
stability. Beside all facilitators provided through government, demand is also
positively affected through and in the results of population growth and
immigration in most of the countries. With the minimum of interest rate
associated to loan services, there is no significant gap between average
purchase powers for buying a premium priced apartment.
8.1.5 Degree of Competitive
Rivalry
In different parts of the world,
construction is a fragmented market and according to population growth and
other immigration factors which cause a higher degree of demand in the market,
the level of competition would be in a highly rank in comparison to other
industries. These are motivating factors which attract a large portion of
business industries to engage construction market. However, there are also some
barriers for industry which makes it difficult for average person to start the
development of a project. Industry requires a huge capital for a project and
also there are always zoning factors which might limit industry to get involve
with flexibility.elements don’t allow a large number of developers to exist in
construction market. Hence, the likelihood of market saturation would not be
very high since not everyone can be in the business. This works especially in
the larger scope projects and developments.
.1.6 Conclusion
For further analysis by researcher,
a set of reliable marketing research tools would be essential and helpful to
get a more accurate set of clues about the existing opportunities and threats
refers to the industry and its players.to the conference of construction in the
Harvard Business School at 1989 and the statements of Michael Porter, “There
have always been lots of companies in the industry and so there has always been
an active situation of rivalry. But again there was plenty of room.”
Sources powers
|
Factor level
|
Industry power
|
Bargaining power of Suppliers
|
Unity of sellers
|
Weak
|
Weak
|
|
Differentiation of product
|
Weak
|
Weak
|
|
Saturation of suppliers
|
Strong
|
Weak
|
|
Employee
|
Weak
|
Strong
|
|
Buyer group size
|
Strong
|
Strong
|
Customer power
|
Factor level
|
Buyer power
|
Bargaining power of Buyers
|
Purchase volume
|
Weak
|
Weak
|
|
Demand size
|
Strong
|
Weak
|
|
Cost of Switching
|
Strong
|
Weak
|
|
Differentiation of product
|
Strong
|
Strong
|
|
Saturation of Buyer
|
Strong
|
Weak
|
Barriers of new entrances
|
Factor level
|
Effect on developer
|
Threat of new entrance
|
Construction Industry growth
|
Strong
|
Weak
|
|
Sales volume
|
Strong
|
Weak
|
|
Capital required
|
Strong
|
Weak
|
|
Cost of Switching
|
Weak
|
Weak
|
|
Government policy changes
|
Strong
|
Weak
|
Substitutes in the market
|
Factor level
|
Impact on developer
|
Substitute
|
Availability of alternatives
|
Weak
|
Weak
|
|
Differentiation of alternatives
|
Strong
|
Weak
|
Rivalry effects
|
Factor level
|
Impact on developer
|
Rivalry
|
Developer group size
|
Weak
|
Weak
|
|
Construction Industry growth
|
Strong
|
Weak
|
|
Unity of market
|
Strong
|
|
Barriers to Exit
|
Weak
|
Weak
|
|
Similarity of existing products
|
Strong
|
Strong
|
|
Construction market growth
|
Strong
|
Weak
|
8.2 SWOT Analysis
this part of the research, the whole
construction industry has been analyzed through SWOT as an effective internal
and external industry analyses tool. SWOT has divided the industry trends to
four major forces which are included strengths, weakness, opportunities and
threats.
it shows in the figure above,
company has a well management and expert staff for team working and project
execution. Based on the growing market, there are benefits of economic of scale
and company can gain the benefits of cost effectiveness associated with that.
However, a single online informative channel with no functionality, broadness
and interactivity beside market tradition and lack of improvement technology
can be a decline factors for the firm. Manager should consider government
policy and trends of industry made by offensive or defensive competitor’s
action.
8.3 Competitor Analyze
analysis assist the overall industry
analysis to position organization in the right place of the market with in
depth overview of external and internal factors for home builders and its major
competitors. This analysis is essential to get the best set of user requirement
at the last stage. The objectives of competitor analysis will assist system
functionalities in two ways. This analysis would take the best package of
system attributes and tries to improve the existing functions with some value
provided differentiation.this stage, researcher would determine what are the
internal strengths and external weakness of the system in compare with its
competitors according to a benchmark.
Figure
8.1 - Online Project Plan Processes
According to the limitation of the
resource and scheduling for this project, researcher conducted an analysis over
GUI attributes, design principles and system functionalities in 4 same sized
competitors to undertake it according to measures and metrics in a reliable
manner.
Key elements
|
Liquid Planner
|
Project Management
|
Tom’s Planner
|
Ganttzilla
|
|
Principles of Design
|
|
Visibility
|
Perfect
|
Perfect
|
Acceptable
|
Perfect
|
Feedback
|
Perfect
|
Perfect
|
Perfect
|
Perfect
|
Constraints
|
Acceptable
|
Acceptable
|
Perfect
|
Acceptable
|
Affordance
|
Perfect
|
Perfect
|
Acceptable
|
Perfect
|
Mapping and Placement
|
Acceptable
|
Perfect
|
Acceptable
|
Acceptable
|
Consistency and Harmony
|
Perfect
|
Perfect
|
Perfect
|
Perfect
|
Design Factors
|
|
Space
|
Acceptable
|
Perfect
|
Perfect
|
Poor
|
Texture
|
Acceptable
|
Perfect
|
Acceptable
|
Poor
|
Form
|
Acceptable
|
Acceptable
|
Acceptable
|
Perfect
|
Color
|
Acceptable
|
Perfect
|
Acceptable
|
Acceptable
|
Navigation
|
Acceptable
|
Perfect
|
Acceptable
|
Perfect
|
Innovation
|
Poor
|
Perfect
|
Poor
|
Poor
|
Functionalities of Planning
|
|
Schedule
|
Perfect
|
Perfect
|
Perfect
|
Perfect
|
Resource
|
Perfect
|
Perfect
|
Perfect
|
Perfect
|
Budget
|
Poor
|
Poor
|
Poor
|
Poor
|
Communication
|
Acceptable
|
Acceptable
|
Acceptable
|
Acceptable
|
Risk
|
Poor
|
Perfect
|
Poor
|
Poor
|
Quality
|
Poor
|
Perfect
|
Poor
|
Poor
|
Document
|
Poor
|
Perfect
|
Poor
|
Acceptable
|
Reports
|
Acceptable
|
Perfect
|
Poor
|
Acceptable
|
package of positive attributes and
factors like usability, higher degree of performance and options can be
motivation for those developers and managers of buildings to get their
personalized platform through this interactive system of project management. Researcher
objective is to design the system as close as possible to the real user
requirements and cover required functions which can provide additional values
in construction industry.analysis in this market includes the evaluation for
some predefined metrics which gives strength or weakness and makes players
different in obtaining market share. According to the websites and online
informative or selling channels, they have different hooking power for
potential visitors and customers.
9. Analyze of Proposed System
.1 Market Introduction Planning
start to design and implement of the
system, and according to the predefined goals and key targets of the project, a
planning over product and its introduction to the market should be a part of
the project not only to clarify the future path for product but also to ensure
the capability of the project itself in gaining market share. This planning
mostly focuses on the monitory requirements of the product management and
marketing plans according to the following sub targets;should be promoted to
more than 80% of online potential customers.expertise team should be hired for
implementation.and marketing through the internet should be followed
accordingly.
9.1.1 Procurement System Target
Market
New purposed system attempts to
increase the level of effectiveness and efficiency for both developers and
project managers through a reliable and accessible platform in which raw
materials and related information would be presented in an interactive way. For
developers this system brings more accessible and updated set of information
and also connection with direct selling source which can be translated to
saving both time and money. Manufacturers also can be assisting through having
such usable platform which gives them opportunity to present their products and
services with maximum effectiveness and efficiency. Therefore, for system
design and development, researcher must identify and analyze over target market
for both sectors in industry.a part of construction market players supply chain
is a crucial necessity for system which would be considered in design and
development. Suppliers of construction industry are those who manufacture
distribute, sell and resell all required items for homebuilding. This amount of
interaction would assist our future database for system adoption and
improvement.would be a communication tool for project managers, team members
and other contributors of construction development sector which gains
effectiveness through a clear and controlled path to all industry suppliers
bypassing geographical limitation of physical channel.
9.1.2 Target Market
Accessibility and Communication
For marketing propose, there are a
wide range of marketing tools which project manager should get the best of
them, after an in depth analysis over benefits or disadvantages associated with
each of them. Measurement should be based on essential factors mentioned in the
table which could be a base for selection of tools and techniques of
marketing.there are different tools and techniques capable for conducting a
marketing plan, researcher have been selected a number of effective approaches
for this propose as the following.
Marketing planning of the product
|
Search engine optimization
|
Awareness campaigns and seminars
|
presentations
|
Training
|
Factors
|
Development Companies
|
3 months
|
Monthly
|
Monthly
|
Monthly
|
Frequency
|
|
1400$
|
7700$
|
8200$
|
6600$
|
Cost
|
|
Strong
|
Limited
|
Limited
|
Limited
|
Scope
|
Private Developers
|
Monthly
|
-
|
-
|
|
Frequency
|
|
500$
|
-
|
-
|
|
Cost
|
|
Med
|
-
|
-
|
|
Scope
|
Sub Contractors
|
Monthly
|
yearly
|
3 months
|
3 months
|
Frequency
|
|
500$
|
12000$
|
11000$
|
7000$
|
Cost
|
|
Med
|
Limited
|
Limited
|
Limited
|
Scope
|
Total periodic cost
|
0$
|
12,000$
|
0$
|
0$
|
Total yearly
|
|
5,600$
|
0$
|
44,000$
|
28,000$
|
Total Seasonally
|
|
12,000$
|
92,400$
|
98,400$
|
79,200$
|
Total Monthly
|
Total marketing cost
|
282,000$ monthly + 77,600$ seasonally+12,000$
yearly = 471,200$ per year
|
9.1.3 Developing SEO and
Keyword Strategy
As a new product in electronic
network and unrecognized set of functionalities, SEO is a great tool for system
and awareness of capabilities. SEO make it feasible for system address link to
get presentation in right search engine. For this matter, this is a crucial
topic for marketer to find the appropriate set of keywords which bring user to
the direct link.
.1.4 Training
Based on the new functionalities of
the system and for achieving the right levels of awareness, this system should
be presented through a right training sessions and in addition with the right
tools to spread the required information for system users. With enough
information, usage of system would be easier and product would be introduced to
the market shorter. Therefore, with an appropriate training program, system
would be market in a more cost effective way and user would acquire a higher
level of understanding and this might lock user through system hooking power.
9.2 Web Development
Methodologies
design and development quality is
tightly dependant on the methodology chosen by the designer. Considering the
limitation of a final year project, right method would be a factor for project
success and the degree in which the quality of outcomes would be. For example,
using spiral methods would have focus on improvement over analysis of user
requirements and design of new system while SDLC would be more powered to
producing a comprehensive and strong documentation.are a large number of
methodologies capable of delivering quality websites or software applications
which can be use for propose of the project. However, not all of them are
appropriate for the nature of final year project with the topic of a system for
improvement over construction supply market. For evaluation and selection of
the best methodology, this is a crucial factor for manager to align the
attributes of the project with the capabilities of each method.
.2.1 Key factors of methodology
comparison
From varieties of methods, each one
would be evaluated through key factors which have significant impact to project
and project management. Researcher have been conducted an in depth evaluation
through analysis over the following factors.achievement in design and
development through using methodologies with iteration.in a comprehensive and
strong documentation.effective change management.for projects in different
sizes and specification.area which would be more strong in deliverables.
Methodology name
|
Methodology Iteration
|
Methodology Documentation
|
Methodology Flexibility
|
Project size
|
Focus
|
Waterfall
|
Phase by phase
|
Powerful
|
Low
|
Big
|
Each phase Key Targets
|
SSADM
|
Analysis and Design phase
|
Medium
|
Medium
|
Big
|
Analyze and Design phase
|
Prototyping
|
Design phase
|
Low
|
Powerful
|
Small
|
Interaction
|
RAD
|
Design phase
|
Low
|
Strong
|
Big
|
Rapid
|
Incremental Prototyping
|
Design phase
|
Low
|
Strong
|
Big
|
Functionalities
|
WSDM
|
Phase by phase
|
Low
|
Medium
|
Big
|
User Specifications
|
Agile
|
All Phases
|
Low
|
Powerful
|
Big
|
Quality of Delivery
|
is more suitable when developer
needs more support for the product through strong documentation and the size of
project is relatively big. SSADM based on the information presented above, is
more advanced version which has iteration on the analysis and design phase.
Prototyping is a useful method when system requires achieving a higher level of
interaction, touch and feeling for user groups. In the time limitation, rapid
methods assist developers to finish a product in a shorter time and achieve an
acceptable quality of outcomes. Incremental prototypes is continues improvement
over a hi-fi or lo-fi prototype which would be more suitable when system should
be examined in different ways. Agile has a tight focus of quality achieving
through iteration in the design phase.
9.2.2 Define Methodology
According to the clear set of
project specification and user requirement for electronic supply channel in
construction industry, SDLC seems to be more suitable and appropriate
technology which outcome a comprehensive and strong documentation based on the
deliverable importance of a final year project.on the clear set of key targets
at the end of each stage of the methodology, developer would be assure that the
quality of the system and documents is relatively high and there are higher
level of maintains available for system future lifecycle.
Figure
9.1 - Waterfall methodology
9.2.3 SDLC phases in Website
development
Based on the materials available,
there is not a unique order and number for SDLC phases. Different analyzers
have different argument of SDLC phases. However, the flow would be started in
data gathering and will continue by analysis, logical and physical design. This
would be continued by the testing and the required level of maintains.
9.2
9.3 Data Flow Diagram
.3.1 Context Diagram
In this part, the general
information flow has been described through a context diagram. There are two
entities as user group of customer and admin which send and receive general
member details to/from the system.
9.3
9.3.2 Level 0
System has seven processes which are
in communication for generating new member and identification of old members,
record and report the products and CRUD (create, record, update and delete) for
all entities and form in the platform. There are also two databases for data
repository which are holding information of members and products in separate
data stores.
9.4
.3.3 Level 1
If more in depth of process number
one, to create membership and sub processes, there are two smaller processes
which create and check ID of members to avoid duplication and register with
unique Identity.
9.5
9.3.4 Process Description
There are nine processes in EEPS
data flow diagram which describes the system through process oriented
presentation. Following table have a detailed description on each process and
associated functions.
Process No.
|
Process Name
|
Process description
|
# 1
|
Add New Member
|
This process makes system capable of receiving
information of new members.
|
# 2
|
Check Customer Id
|
For this part, system compares new input with
historical ID database.
|
# 3
|
Provide Product Record
|
This process allows user to add new product
record for system presentation.
|
# 4
|
Update Product Info
|
Enable system to update or modify product
records.
|
# 5
|
Produce Product Info
|
Generation of product information from data
and records of database.
|
# 6
|
Provide Customer Report
|
Allows manager to access reports of customers
and members of the system according to the required information
specification.
|
# 7
|
Provide Product Report
|
Allows manager to access reports of products
of the system according to the required information specification.
|
9.4 Logical Entity Relationship
Diagram for EPPS
on the system functionalities
designed in the logical stage, there are three entities of users, products and
rating in the system. Product to user, user to rate and rate to product have
one to many relationship presented in the diagram. Each entity has its own
required attributes which make related record of the entity.
9.6
9.5 Data Dictionary
this section, a detailed description
of each pieces of data have been provided through the data dictionary. This
reference of data describes the type, size and other properties for each single
attribute of the each entity. This table describes product entity divided into
all attributes with required details of each single set of data.
Electronic Construction Procurement System
|
|
|
|
|
Printed On:
|
05/24/2012
|
18:07
|
|
|
|
|
Product Table
|
Item procurements are available for customers
are informed from new products with details information and Prices.
|
Data Member Name
|
Description
|
Type
|
Additional Type Information
|
Default Value
|
Mandatory
|
Unique
|
P_key
|
The unique identifier of the number of product
|
nchar
|
Length (min:1, max:100)
|
Not Null
|
Yes
|
Yes
|
type
|
Several types of products such as windows
& Doors
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
name
|
Name of products
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
size
|
Different size of windows & doors
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
Different color of windows & doors
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
material
|
Different material of windows & doors
|
nchar
|
Length (min:1, max:50)
|
Null
|
Yes
|
No
|
price
|
Sales price & promotion price of each
product
|
Int
|
-
|
Null
|
Yes
|
No
|
quantity
|
Different quantity of windows & doors
|
nchar
|
Length (min:1, max:50)
|
Null
|
Yes
|
No
|
advice
|
The user leaving comments
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
Email
|
User Email Addresses
|
nchar
|
Length (min:1, max:50)
|
Null
|
No
|
No
|
|
|
|
|
|
|
|
|
|
|
|
|
|
table describes user entity divided
into all attributes with required details of each single set of data.
Electronic Construction Procurement System
|
|
|
|
|
Printed On:
|
05/24/2012
|
18:15
|
|
|
|
|
Users Table
|
Detailed information about system users.
|
Data Member Name
|
Description
|
Type
|
Additional Type Information
|
Default Value
|
Mandatory
|
Unique
|
Email
|
The unique identifier of the users Email
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
Yes
|
Username
|
Used for login to system
|
nchar
|
Length (min:1, max:10)
|
Not Null
|
Yes
|
No
|
Password
|
Used for login to system
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
Confirm_Pass
|
Onfirm the user password
|
nchar
|
Length (min:1, max:10)
|
Not Null
|
Yes
|
No
|
First_name
|
Customer First name
|
nchar
|
Length (min:1, max:10)
|
Not Null
|
Yes
|
No
|
Last_name
|
Customer Last name
|
nchar
|
Length (min:1, max:10)
|
Not Null
|
Yes
|
No
|
Gender
|
Customer Gender
|
nchar
|
Length (min:1, max:10)
|
Not Null
|
Yes
|
No
|
Birth
|
Customer birth of day
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
City
|
Customer living city
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
Country
|
Customer living country
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
ZipCode
|
Customer zipcoad
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
|
|
|
|
|
|
|
|
|
|
|
|
table describes comment entity
divided into all attributes with required details of each single set of data.
Electronic Construction Procurement System
|
|
|
|
|
Printed On:
|
05/24/2012
|
20:09
|
|
|
|
|
Comment Table
|
An item in the product, forum and media pages
that is available for customers to write their opinion about the clothing
promotions.
|
|
Data Member Name
|
Description
|
Type
|
Additional Type Information
|
Default Value
|
Mandatory
|
Unique
|
|
Username
|
Unique identifier
|
nchar
|
Length (min:1, max:10)
|
Not Null
|
Yes
|
Yes
|
|
P_key
|
F_key from product table
|
nchar
|
Length (min:1, max:100)
|
Not Null
|
Yes
|
No
|
|
Email
|
F_key from user table
|
nchar
|
Length (min:1, max:50)
|
Not Null
|
Yes
|
No
|
|
rate1
|
Low rate for each product
|
nchar
|
Length (min:1, max:10)
|
Null
|
Yes
|
No
|
|
Rate2
|
Low rate for each product
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
|
Rate3
|
Medium rate for each product
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
|
Rate4
|
High rate for each product
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
|
Rate5
|
High rate for each product
|
nchar
|
Length (min:1, max:10)
|
Null
|
No
|
No
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.6 Story Board Scratch Design
board assist designer to avoid
multiple costly revision of changes before the implementation stage. This
approach doesn’t have touch and feel because this type of paper prototyping is
only for designing the scratch. Instead this type of lo fidelity prototyping is
very easy and cheap to conduct.
9.7 Interface Design Principles
.7.1 System Interaction and
Hooking Power
In a B2C system, one of the major
concerns in design and implementation is to reach a high level of
instructiveness and create power of locking user into the platform. For
designing the procurement system, manager decided to focus on the interaction
specially for presentation of the product and associated information.
9.7.2 Usability Goal Setting
According to what stated by Nielsen
regarding the usability and engineering of the system interaction, in designing
system, designer should provide additional interactive tools and functions in
addition with the old functionalities (Nielsen J., 1993).
.7.3 Usability Attributes
Learnability: in terms of learn
ability of the system, it is considered in the design which procurement system
should simplify the process and make a simple front end for users.: System
provides accurate outcomes for records, presentations and reports. Functions
are designed and tested to ensure system has enough level of efficiency.:
System has been designed based on the current framework of construction
material websites and platforms.: Based on the feedback provided for each
button, this is expected that system face to minimum user errors and
confusion.satisfaction: easy to use, new design and light and pretty patterns
in the system make user become satisfy of the interaction.
.7.4 Usability Design
Principles
Required level of usability depends
on the requirements, type of users, objectives of system and so many other
internal and external variables. In a procurement system accuracy of information,
interaction and presentation of information is major designer focus.
10. Implementation of
procurement system
.1 EPPS Physical Database
Design
physical design including three
entities was conducted through using SQL which is a flexible and powerful
database tools for management of the database.
10.1
10.2 Interface Design and user
guide
10.2
10.3
Figure 10.4
Figure 10.5
Figure 10.6
11. Testing
system is physically implemented,
this does not mean that the project is finished. Manager should ensure that the
results would meet the user requirements in real world conditions. Besides
there should be some levels of support for system since future might have
different specification required for the system.
11.1 Objectives of Testing
main objectives of testing for
electronic construction channel are to ensure that project meets the requirements
of all user groups. For example, if different users have been chosen to work
with different browsers, would the system be a compatible one to support all
required function. In addition test manager should verify that system levels of
interaction are enough to create hooking power and developers wish to use it
for the procurement process.objective is to create a guideline and measurement
for system evaluation and make sure that potential users are able to reach the
system a high level of availability and functionality. This guideline would be
used to show the criteria in which project is a successful achievement.
Researcher must make sure testing environment is similar to the real working
environment. According to Bryan, John and Brett in 2008, to setting up a method
of viewing a Website offline so to make minor changes and preview them (Bryan,
John and Brett, 2008). User also should be able to use different types of
browsers and present system with different resolutions.
11.2 Scope of Testing
this phase of the project, this was
required for manager to simulate the real environment through using some
assumed data making sure that system limitation would not affect the
functionality required in real practical environment.
11.3 Types of Tests
this section there are several
testing types which test manager have been selected and conducted to ensure the
quality of the product and its compatibility with the network’s
environment.testing: this type of testing refers to the website presentation
and functionalities while using varies of browsers by users. In a successful
compatibility testing, manager should get the result of functional and well
presented system with all available browsers.testing: this type of testing
refers to the website functionalities which have been designed to do some
specific actions or behaviors. In a successful functional testing project
manager would figure out that website is usable.and user acceptance testing:
this type of testing refers to the website usability and HCI concepts or principles
of the design. In a successful design testing project manager would determine
that system is interactive and has enough hooking power.Evaluationon what has
been stated by Jakob Nielson and Rolf Molich, Heuristic evaluation is a cheap
and quick method to structure the critique of a system using a set of
relatively simple and general heuristics (Dix A. et al, 1998).is expected for
this type of testing to generate and determine a set of problem which system
can be improving its usability by solving them. This is like system criticism
and problem finding which has emphasizes on the principles of design and
interaction tools.evaluationtesting measures the effect of Website on the users
through analyse the output of the product (Bhola, H. S. 1990). In a successful
summative testing, project manager or test manager would Figure out if the
functionality of the project works properly.
.4 People Who Tested
a system testing there must be
different people in different roles each have a significant contribution for
the testing objectives. groups can include users, project manager, developers,
data entry team etc. test manager should be aware of external factors and their
effect on the results of the endeavor. , test manager should be in a tight
understandable communication and manager the integration required after
testing.
.5 Design Testing Environments
important testing manager concern is
how to simulate the testing environment become so similar to the real world
atmosphere. concern would increase the reliability of the testing outcome and
make the outcomes accurate.
11.6 Results of Testing
.6.1 Compatibility testing
|
Google Chrome 13
|
|
|
|
|
Internet Explorer 8
|
|
|
|
|
Mozilla Firefox 8.0.1
|
|
|
|
|
Opera 11.52
|
|
|
|
|
Safari 5.1.1
|
|
|
|
|
|
|
|
|
11.6.2 Functional testing
Page
|
Function
|
Expected result
|
Actual result
|
Home
|
Presentation of info
|
Well organized
|
pass
|
|
Navigations of pages
|
Correct navigation
|
pass
|
About us
|
Presentation of info
|
Well organized
|
Pass
|
Contact us
|
Presentation of info
|
Contact and communication
|
Pass
|
admin
|
Create
|
Add new topic
|
Pass
|
|
Update
|
Edition
|
Pass
|
|
Record
|
Generate records
|
Pass
|
|
Delete
|
Delete records
|
Pass
|
Login
|
User authentication
|
Recognize all user groups
|
Pass
|
11.6.3 Formative testing
no
|
Area
|
Description
|
1
|
System Visibility
|
Controls are in a highly visible place.
|
2
|
system controls and the real world
|
Metaphors in the system
|
3
|
control and monitor
|
Control all system functions
|
4
|
System Consistency
|
Similar patterns and layout
|
5
|
Error and error management
|
validates
|
6
|
Recognition instead of recall
|
Utilization of the combo boxes.
|
7
|
Flexibility in the system
|
Match exceptions
|
8
|
Help and assists
|
Tooltips
|
9
|
Design
|
Best selection of the pattern, design and
color
|
10
|
Documentation of the system
|
User manual documented
|
11.6.4 Summative testing
Figure
11.1 - Summative Testing
11.7 Testing Errors
on the compatibility testing table,
the results indicate that website is still well presented and functional no
matter which browser is the user going to use. A formative testing result
indicates that HCI concepts, elements and principle of design have been
utilized in a proper way. Based on the summative testing, the level of
interaction has been determined in a right degree and developer can ensure the
amount of required hooking power is in the designed product.
12. User manual
manual is a part of maintains guide
and would be an effective support tool for users, developers and other target
groups to independently learn how to use system. Such directory would assist new
users to get system concept in a relatively short time. User manual is also an
effective advertising tool for indicating the functionalities of the system and
its uniqueness.
.1 Introduction
this part, according to the system
instruction and guideline, functionalities and commends of using system have
been described in details.
12.2 To Register
the login button, user would be able
to generate its record and access to the system functionalities as a genuine
member.
12.3 Logging as an admin
is the one from internal environment
of the organization which controls the record and information provided through
the website. Therefore, admin in the website is responsible to organize the
information so that provide an updated set of product package details to the
normal users.
13. Critical project appraisal
fact, evaluation of the digital
procurement system is dependent on the discrepancy of the pre defined
objectives of the system with the achieved set of targets. Besides, as an
accomplished product, this is very important for developer to mention added
value of the project in the form of knowledge, experience and skill in each
phase of the topic.addition to all above, this is crucial for researcher to get
to know what can be improved for next experiences and what was learned from the
whole initiative.
13.1 Accomplished Phases
each phase, project manager must
determine if he or she got the reliable set of expected deliverables. System
was designed through using the SDLC methodology which has clear and separate
phases. In this methodology each stage should deliver a set of key targets.
According to set of project and methodology phases, researcher has conducted
the following evaluation over desirable key targets.
.1.1 Project planning
In the planning stage, this was
expected to reach a comprehensive planning which has covered entire project
dimensions in terms of risk, time, cost and other project knowledge areas.
These dimensions of the project have been outlined in the project planning
properly.
13.1.2 Project research and
literature review
In the phase of research, manager
has been provided the industry information and document updated set of trends
in the market. manager provided an overview on the market suppliers and key
challenges in the raw material industry which affect the developers and
development.
.1.3 Analysis and setting out
the requirements
In a final year project, and as the
part of solution, this is very important for project manager to reach an
accurate set of requirements balanced with the user expectations and
requirements. Project outcomes must meet what user actually wants and needs.
For this system, design and
development starts from a logical engineering and followed by the physical
implementation which had an intensive focus on the instructiveness and
functionality for meet the specification of analysis.
13.1.5 Testing and maintenance
In testing the achievement, there
were three types of testing handled by test manager as below.testing with
different browsers.testing to determine the level of functionality.and user
acceptance testing for determine the degree of usability.
13.2 System Benefits to end
user
would create a value atmosphere with
a lot of benefit for both suppliers and customers in construction industry as
following. According to discovered problem, Electronic Construction Procurement
System should be able to create major business values for the organization as
following;benefits:marketing procurement cost through providing borderless
geographical access.cost of manual and paper work procurement process.a faster
approach to find and evaluate market sources.benefits:required time and
investigation effort to market productsmarket accessibility and increase
organization competitivenesscommunication for suppliers company and customerthe
quality of the services and push organization to position in a higher level of
CRMthe competition among industry suppliersthe level of commerce
integrationrequired procurement recognition and memorization of products
13.3 Challenged faced
specification of the system was
derived through investigation and data gathering from supplier market and
project managers. This was the main emphasize for managers to get the most
reliable set of user requirements in the whole project lifecycle.
.4 System limitation
are also some areas that system
would not be able to support;payment and bids legalizationvaliditydata formats
13.5 Learning experience
Construction Procurement System need
researcher to get master in below requirements;interface cosmetic
toolsalgorithms and coding
.6 Value of learning experience
nature of project management for a
student final year project would bring a lot of experiences and learning for
different phases of endeavor and researcher and investigation required for
different parts of the project.
.7 Degree of success
the following, project manager
conducted an analysis over success degree for both project and the product to
measure how the pre defined objectives and in what degree are achieved.
.7.1 Electronic procurement
system
System evaluation requires comparing
functionality package and interaction level with the expected designed
solution. As project outcome includes a comprehensive documentation and a fully
functional website, it seems that the key targets of the project have been met.
System will create value through a well-designed accessible platform contain
all required information related to products and functionalities required to
create and support a sustainable source of development supplier in construction
sector. This is expected from the project to deliver a new business model
capable of handling business processes in a higher level of effectiveness and
efficiency. As a B2C digitalized commerce tool this is expected that
organization reaches a higher amount of sales which can be translated to higher
profit. Besides, ease of management and higher level of integration would also
apply to the company after digitalization of the
procurement.functionalitiesprocurement management and external supplier levels
of accessibilities.suitable information format of procurement items.marketing
and commerce of supplier organization through a well-designed platform.functions.keeping.immediate
and reversible action and effective system navigation.features.support
procurement reports for organization management and strategic movements.
13.7.2 Electronic procurement
project
In Electronic Construction
Procurement System like any other project, the main objective would be to stay
on the time, resource and quality of the major deliverables. As an individual
project, researcher is limited to information sources and a year time
constraints defined for a final year project. In higher degrees of
achievements, project can be maintainable and sustainable for further
improvements and enhanced future functions.
13.8 Possible Future
enhancement
can be enhanced in future through
mobile applications which broaden the scope of access and coverage for
organizational information.
13.9 Improvements for same
project in future
developer has the second chance to
implement the system, there were several areas which were under higher level of
emphasizing. First, to investigate the updated material developer intends to
get more literature and interview more people and players in construction
industry. Second area of focus is the development and tool or techniques used
in the application. There are a lot of functionalities which can be added to
the system through using more updated tools and techniques.
14. Discussion Recommendations
and Conclusion
.1 System Discussion
effectiveness of the project depends
on the amount of vendor information available to evaluation and selection by
project manager. Although the scope of the project and eventually the required
procurement are clearly defined in project procurement planning, the system
with effective marketing objectives can help the manager to reduce the material
price and increase the quality of inputs with a significant time cutting which
can be translated as the overall reduction in project cost (Harold Kerzner,
2006). With such significant value in project procurement, supplier firms
should apply technological tools and enhancements to create a better
communication channel with a larger amount of available information for
customers.of the procurement process in Development Company applies an
important competitive advantage to the organization. The ability to shift the
global market for supply is another advantage for a project to increase the
competitiveness (George Ritz, 1993).
.2 Future Recommendations
can acquire a wide range of
functionalities according to the user requirements in future. Based on the
industry trends and new customer needs and wants, system can reach a great set
of achievements to perform beyond an informative website. In addition with
product description, system can handle transaction and become a one step
procurement solution in the market.
14.3 Conclusion
procurement system can increase
firm’s revenue through using information and advantages of digital channel in
addition with the maximum efficiency results of technological advancement.
Procurement has a significant contribution in development overall budget in
construction projects. All procurement strategies are frameworks by which an
organisation attains its objectives (Harold Kerzner, 2006). Electronic
Construction Procurement System makes it feasible for developers to gain an
effective evaluation area and negotiation communication tool. Homebuilders may
obtain the benefits of this Web-based system to increase the level of control
over project with a large amount of raw material information.
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.2 Website
Langdon, 2011, World Construction
2011 [online] Available at: <#"663922.files/image040.gif">