Project name: Construction of a 3000 m2 warehouse
(a) Overview of major tasks in this project
Warehouse construction is a complex process which involves work from various areas such as:
In order to complete this warehouse construction project, it is required to complete each of these activities in a proper sequence. In this context, a detailed overview of activities have been provided that need to be completed for completing this project.
Mobilize on Site
In order to complete this activity, following sub-activities need to be competed:
Site Grading and Utilities
In order to complete this activity, following sub-activities need to be competed:
Foundations
In order to complete this activity, following sub-activities need to be competed:
Steel Erection
In order to complete this activity, following sub-activities need to be competed:
Form and Pour Concrete – Floors
In order to complete this activity, following sub-activities need to be competed:
Carpentry Work
In order to complete this activity, following sub-activities need to be competed:
Masonry Work
In order to complete this activity, following sub-activities need to be competed:
Roofing
In order to complete this activity, following sub-activities need to be competed:
Window wall and store front closures
In order to complete this activity, following sub-activities need to be competed:
Building Finishes
In order to complete this activity, following sub-activities need to be competed:
Electrical
In order to complete this activity, following sub-activities need to be competed:
Mechanical work (Heating and Ventilating – AC)
In order to complete this activity, following sub-activities need to be competed:
Final Clean-up and Occupancy
In order to complete this activity, following sub-activities need to be competed:
Successful completion of this project would involve shared responsibilities to complete work requiring various skills and expertise. Therefore, it is extremely important for team members to identify their roles, associated responsibilities and tasks that they are responsible for execution. It is expected that each team member will lend their full support for completing these activities and make this project a success.
|
Role |
Responsibilities |
Person responsible |
|
Project sponsor |
· To coordinate with client and identify their requirements · To establish coordination between project team and client · To review change requirements and provide necessary support and resources for implementing changes · To review project progress and share feedback as per requirements |
< Please enter name > |
|
Project coordinator |
· To review and document project progress · To work in close coordination with project manager for completing project activities on time · To report issues and risks within project to project manager · To implement changes within project as required |
< Please enter name > |
|
Project procurement manager |
· to identify project procurement requirements and obtain resources · to work in close coordination with suppliers, identify their concerns and resolve accordingly |
< Please enter name > |
|
project financial manager |
· To estimate project cost requirements and create project budget · To provide financial resources for completing project · To review project cost performance and resolve issues accordingly |
< Please enter name > |
|
Project manager |
· To review and document project progress · To work in close coordination with project coordinator, share necessary feedback and input as per requirement · To implement required strategies for completing project activities on time and within budget · To implement proper strategies for resolving issues and risks within project to project manager · To implement changes within project as required and obtain necessary support and resources following approval from project sponsor |
< Please enter name > |
|
site manager |
· To review and manage day to day work on construction site · To manage workers on site and provide required resources and support for completing site works · To review safety issues on site and implement necessary safety measures as per requirements to ensure safe work · To report any delays and variations in work to project manager and implement strategies as per requirements |
< Please enter name > |
In order to complete this warehouse construction project, various resources will be required. Therefore, it is important to have a proper estimate for required cost for this project. In this context, an estimate for this project has been provided, which is as follow:
Costs of resources
|
Resource Name |
Type |
Max. Units |
Std. Rate |
Cost |
|
General Management |
Work |
100% |
$60.00/hr |
$1,934.40 |
|
Project Management |
Work |
100% |
$60.00/hr |
$7,838.40 |
|
Procurement |
Work |
100% |
$50.00/hr |
$2,800.00 |
|
Scheduler |
Work |
100% |
$50.00/hr |
$800.00 |
|
Accounting |
Work |
100% |
$50.00/hr |
$132.00 |
|
Superintendent |
Work |
100% |
$50.00/hr |
$2,420.00 |
|
Survey Crew |
Work |
100% |
$50.00/hr |
$3,200.00 |
|
Rough Carpenter Crew |
Work |
100% |
$30.00/hr |
$2,160.00 |
|
Labor Crew |
Work |
100% |
$30.00/hr |
$2,433.60 |
|
Concrete Crew |
Work |
100% |
$30.00/hr |
$0.00 |
|
Carpenter Crew |
Work |
100% |
$30.00/hr |
$6,000.00 |
|
Site Grading Contractor |
Work |
100% |
$30.00/hr |
$8,880.00 |
|
Plumbing Contractor |
Work |
100% |
$30.00/hr |
$9,600.00 |
|
Plumbing Contractor Management |
Work |
100% |
$60.00/hr |
$4,800.00 |
|
Electric Contractor |
Work |
100% |
$50.00/hr |
$14,800.00 |
|
Electric Contractor Management |
Work |
100% |
$50.00/hr |
$4,000.00 |
|
HVAC Contractor |
Work |
100% |
$30.00/hr |
$14,400.00 |
|
HVAC Contractor Management |
Work |
100% |
$50.00/hr |
$4,000.00 |
|
Elevator Contractor |
Work |
100% |
$30.00/hr |
$0.00 |
|
Elevator Contractor Management |
Work |
100% |
$50.00/hr |
$0.00 |
|
Steel Erection Contractor |
Work |
100% |
$50.00/hr |
$18,400.00 |
|
Steel Erection Contractor Management |
Work |
100% |
$30.00/hr |
$9,600.00 |
|
Drywall Contractor |
Work |
100% |
$30.00/hr |
$9,732.00 |
|
Masonry Contractor |
Work |
100% |
$30.00/hr |
$12,000.00 |
|
Tile Contractor |
Work |
100% |
$30.00/hr |
$0.00 |
|
Roofing Contractor |
Work |
100% |
$30.00/hr |
$1,200.00 |
|
Roofing Contractor Management |
Work |
100% |
$50.00/hr |
$4,000.00 |
|
Window Contractor |
Work |
100% |
$30.00/hr |
$9,600.00 |
|
Carpet Contractor |
Work |
100% |
$30.00/hr |
$1,200.00 |
|
Landscape Contractor |
Work |
100% |
$30.00/hr |
$0.00 |
|
Paving Contractor |
Work |
100% |
$30.00/hr |
$1,200.00 |
|
Painting Contractor |
Work |
100% |
$30.00/hr |
$6,000.00 |
Detailed cost estimation for human resources for project
|
Task Name |
Duration |
Cost |
|
Warehouse construction |
195 days |
$163,130.40 |
|
General Conditions |
24 days |
$10,896.00 |
|
Project Procurement |
110 days |
$38,400.00 |
|
Mobilize on Site |
12 days |
$4,280.00 |
|
Site Grading and Utilities |
35 days |
$11,600.00 |
|
Foundations |
193 days |
$2,904.00 |
|
Steel Erection |
142 days |
$6,400.00 |
|
Form and Pour Concrete – Floors |
145 days |
$3,597.60 |
|
Carpentry Work |
15 days |
$3,600.00 |
|
Masonry Work |
72 days |
$16,800.00 |
|
Roofing |
20 days |
$3,600.00 |
|
Window wall and store front closures |
60 days |
$18,000.00 |
|
Building Finishes |
35 days |
$8,400.00 |
|
Electrical |
25 days |
$10,800.00 |
|
Mechanical work (Heating and Ventilating – AC) |
45 days |
$10,800.00 |
|
Final Clean-up and Occupancy |
5 days |
$1,360.00 |
|
Complete Final Inspections |
3 days |
$1,320.00 |
|
Complete all inspections |
1 wk |
$8,484.00 |
|
Obtain certificate of occupancy |
2 days |
$960.00 |
|
Issue final completion documents including warranties |
1 day |
$480.00 |
|
Issue final request for payment |
1 day |
$448.80 |
In order to estimate completion time of this warehouse construction project, bottom up estimation technique has been considered. In this estimation technique, first the overall project has been divided into smaller activities and each of these smaller activities are then again divided into sub activities. First, these sub activities are estimated in terms of number of days or weeks required and then accordingly higher level activities have been estimated. Following this estimation, project completion time is estimated to be 127 days. An estimation of project high level activities is as follow:
|
Task Name |
Duration |
|
Warehouse construction |
195 days |
|
General Conditions |
24 days |
|
Project Procurement |
110 days |
|
Mobilize on Site |
12 days |
|
Site Grading and Utilities |
35 days |
|
Foundations |
193 days |
|
Steel Erection |
142 days |
|
Form and Pour Concrete – Floors |
145 days |
|
Carpentry Work |
15 days |
|
Masonry Work |
72 days |
|
Roofing |
20 days |
|
Window wall and store front closures |
60 days |
|
Building Finishes |
35 days |
|
Electrical |
25 days |
|
Mechanical work (Heating and Ventilating – AC) |
45 days |
|
Final Clean-up and Occupancy |
5 days |
|
Complete Final Inspections |
3 days |
|
Complete all inspections |
1 week |
|
Obtain certificate of occupancy |
2 days |
|
Issue final completion documents including warranties |
1 day |
|
Issue final request for payment |
1 day |
Estimation of project duration
|
Expected Project Completion Time |
|
|
Deadline |
195 |
|
Risk |
25% |
|
Std. dev |
4.449754 |
For 90% confidence interval, z = 1.645
From Monte Carlo simulation:
Mean = 192.1
Standard deviation = 4.3096
Therefore, estimated project completion time = 192.1±1.645*4.3096 = 185.01 or 199.18 days.
Estimation of project cost
|
Expected Project Completion Cost |
|
|
Cost |
163130 |
|
Risk |
53% |
|
Mean |
163135.8 |
|
Std. dev |
93.8804661 |
For 90% confidence interval, z = 1.645
From Monte Carlo simulation:
Mean = 163135.8
Standard deviation = 93.8804661
Therefore, estimated project completion cost = 163135.8 ± 1.645* 93.8804661 = $ 162981.36 or $ 163290.23.
|
Risk ID |
Risk |
Description |
Probability |
Impact |
Mitigation strategy |
|
1 |
Fire |
As warehouse has large space and consists of items that are tightly packed, a slight fire can have a devastating impact and this is an important and significant risk that needs to be considered from operational perspective. |
Medium |
High |
Although fire is an important risk for operating warehouse, this risk can be mitigated to a significant extent following some effective measures: · It is required to install systems for extinguishing fire and some important fire suppression systems that should be considered include sprinklers, fire doors, and fire extinguishers. · Installing and regularly inspecting fire detection systems, such as smoke alarms. · Ensure standard building codes are followed for maximizing safety. · Train employees so that they are capable of identifying fire hazards and implementing safety measures as per requirements. |
|
2 |
Flood |
Another important and significant risk that needs to be considered from operational perspective is risk of flooding which may lead to damage of goods. |
Medium |
High |
Although flooding is a natural disaster and not within human control, but its impact can be reduced to a significant extent following some simple yet effective measures: · Pay close attention if there is any flood warnings in the area. · Conduct risk assessments on a regular basis for identifying any flood related risk and inspect areas or goods which could be affected by flood to avoid goods being damaged if there is any flood. · Keep stock above floor level. Items such as paper records or goods which are easily damaged in flood should be kept at highest level possible in waterproof containers to minimize chances of damage in flood. Similarly, it is recommended to move machinery and equipment from ground level while there are high chances of flooding. · Ensure external and internal drains are cleaned on a regular basis · Install permanent or removable barriers for sealing floors, doors, windows, and other openings which will help in preventing water from entering into warehouse · Electrical sockets and wiring should be kept above ground level to avoid contact between flood water and electric wires · Provide training to employees as this will help them in identifying and reporting flooding hazards. · Important backup systems such as water pumps should be made available in the warehouse · Following any flood, conduct an inspection by professional inspection for determining extent and level of damage within warehouse · It is recommended to clean and dry entire warehouse properly before resuming operations for maximizing safety within warehouse |
|
3 |
Security risk |
As warehouse has large volume of inventory, there is a high risk of theft. If inventory consists of expensive items, this risk become even more significant from operational perspective |
Medium |
High |
· Protect warehouse by installing a fence around exterior yard to restrict people from illegally entering into warehouse. · Install security alarms and keep them activated when warehouse is closed · Install CCTV camera and ensure they are operating properly without any issue · Keep sign-in registers for visitors for documenting entry and exits of visitors for maximizing safety of warehouse · Employ security guards to protect warehouse from thefts and increasing overall safety of warehouse |
|
4 |
Injury to workers |
While working within warehouse and loading and unloading goods, workers may got injured. Risk is increased significantly in case of hazardous items |
Medium |
High |
· Implement safety measures and provide workers protective gears as per requirements · Train employees on safety issues and how to follow safety standards while working · Install safety guidelines throughout warehouse for easier access to safety standards as per requirements |
To negotiate with seller, first seller will be encouraged to make an offer. To ensure that seller is offering an appropriate price for property, market research will be conducted and then estimated budget will be obtained for purchasing land in particular area of interest where land will be purchased. Although the idea is to obtain the best deal, but this is not the only factor that will be considered for negotiation. Since this is a commercial warehouse construction project, factors such connectivity, economic opportunities within that area, ease of business are some major considerations that will be analysed. Once seller quotes a price, a counter offer will be given to seller based on market research and estimated budget available for purchasing that land. Seller will be also provided reasons and factors based on which counter offer is made. The whole idea of this negotiation is not to bargain too much if location in which land is to be purchased has certain facilities favorable for operating warehouse and quote from seller seems reasonable.
To negotiate with local municipalities, benefits of project will be shared and along with this, local authorities will also be made aware of how this project will bring economic development and business opportunities within that area. Negotiation will be based on benefits that this project will provide against incentives being offered as this will be essential for convincing local authorities and obtain best incentives for purchasing land for this project.
Therefore, as per decision tree analysis, land B should be chosen as it will require lowest total cost and therefore, is recommended in this context.
(i) Project shared folder for file access
Analysis of DMAIC for improving process
Define
In this phase of DMAIC, the problem and process to be improved is described in detail to allow for measurement and analysis of problem to be solved for improving chosen process. Following is a description of problem and process to be improved by applying DMAIC tool:
|
Project Background |
Customer manager, bank tellers, and clients have complained about long waiting time for obtaining financial services. |
|
Problem Describe |
It has been identified that waiting time for some general customers have exceeded acceptable time and has affected customer satisfaction. |
|
Target |
To minimize waiting time for customers and ensure that waiting time for customers is properly controlled to make it consistent with customer acceptable range. |
|
Range |
Normal work day 8 hours |
|
Benefit |
This will help in reducing customer waiting time, improve service quality, and enhance customer satisfaction, which is required for increasing customer loyalty. Therefore, improving this process will provide various benefits to this organization. |
Measurement
Fig 1: Waiting Time of customers
From the Figure 6, it is identified that for 47.1% customer, acceptable waiting time is 8 minutes, for 26.9% customers, acceptable waiting time is 15 minutes, for 16.3% customers, acceptable waiting time is 20 minutes, for 6.7% customers, acceptable waiting time is 30 minutes, and for 2.9% customers, acceptable waiting time is more than 30 minutes. Therefore, the best value for service waiting time for customers is 8 minutes as obtained from data analysis.
Figure 2: Flow Chart of General financial business process
Figure 3: Supply Input Process Output Customer (SIPOC) Chart
Following problems have been identified from measurement and requires further analysis for resolving these issues accordingly:
To analyse issues as described, following parameters will be analysed:
Table 3: Waiting Time Data
Scenario 1: C=2 (No. of channels open)
n: No. of customers
Ti: Customer arrive time (min)
si: Customer receive service time (min)
ti: Customer arrive interval time (min)
wi: Customer waiting time in queue (min)
After calculations, following results have been obtained:
λ= 0.475 person / min
μ= 0.25 arrive person/ service min
Therefore, if number of service windows kept open is 2, on an average, approx.17 people will be waiting in queue line average approximate and amount of waiting time is 37 minutes, therefore, this is an issue from customer service perspective.
Scenario 4: When C = 3
Po=0.1278
Lq= 0.6618 person
Ls=2.5618 person
Tq=1.3933 min
Ts=5.3933 min
Scenario 5: When C = 4
Po=0.1453
Lq= 0.136 person
Ls=2.036 person
Tq=0.2863 min
Ts=4.2863 min
Therefore, it is required to keep 3 or 4 channels open as identified from this analysis to resolve customer queue issue. However, considering economic and budgetary issue, opening 3 service channels is recommended for the organization.
It is possible to adjust number of bank service windows kept open depending on time period. However, keeping only two service channel open irrespective of number of customers waiting to avail services will not work as described in this context. Following are two important ideas for improving service time and quality:
This is the last step of DMAIC and as part of this process, it is recommend to keep higher service quality, employ required measures and process improvement strategies, review performance and ensure problems are not recurring, which is the main purpose of control in DMAIC tool.
References
Brook, M., 2016. Estimating and tendering for construction work. Routledge.
Furterer, S.L., 2016. Lean Six Sigma in service: applications and case studies. CRC press.
Gijo, E.V. and Antony, J., 2019. Application of Lean Six Sigma in IT support services–a case study. The TQM Journal.
Mubarak, S.A., 2015. Construction project scheduling and control. John Wiley & Sons.
Reddy, G., Smyth, E. and Steyn, M., 2017. Land access and resettlement: a guide to best practice. Routledge.
Sears, S.K., Sears, G.A., Clough, R.H., Rounds, J.L. and Segner, R.O., 2015. Construction project management. John Wiley & Sons.
Srinivasan, K., Muthu, S., Devadasan, S.R. and Sugumaran, C., 2016. Six Sigma through DMAIC phases: a literature review. International Journal of Productivity and Quality Management, 17(2), pp.236-257.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
Zhong, Y., 2016, August. The analysis of cases based on decision tree. In 2016 7th IEEE international conference on software engineering and service science (ICSESS) (pp. 142-147). IEEE.
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