Professional Project Organisational Innovations

Identifying and exploring future profession

Discuss about the Professional Project Organisational Innovations.

In the coming year, I am curious to become a chief financing officer who shall handle all the matters related to finance within an organisation, as the ultimate decision-making shall lie with me. It is his responsibility to outshine with strategies that are out of the box and for organisation good.

In the present environment, it is notified that there is an evolution of market development wherein the financial officer is required to undergo varied challenges and also gain benefits at different levels of organisation and individual. The organization is striving to prove its existence across the world. Herein the financial officer plays a crucial role in addressing the production and sales department for all those products that are being made by the organisation.  In order to survive in this competitive course of the market, the organization is required to implement several strategies and processes for smoother operations for its organisation further meeting the demands as well as the supply chain requirements (Winch, 2010). It is seen that some organisation holds their grip in the market while some possibly lose it. Herein is where the financial officer steps in as a saviour by minimising the production cost and undertaking decisions related to the financial issue.

It can be stated that a finance officer is similar to a treasurer position or “light” treasurer who is given roles and responsibilities of an investigator that include assistance from the administrator department for conducting a variety of operational activities. It is seen that in any perception the finance officer is looking forward to undertaking the responsibility. In such a case the back officer holds the onus of undertaking the responsibility to maximising the profitability grade while reducing the overall exposure, ensuring that an effective control framework is established to trade and endeavour assets (Booch, 2006). To expedite funding supervisor participates in money associated examination wherein its responsibility varies from the gauge, planning, ascertaining cost minimization investigation and working towards the operation execution. This position is considered to be higher in senior perspective than the other monetary investigators.

Finance department holds the prime responsibility towards allocating funds, planning for profit distribution, mounting of funds and indulging in the capital sector. This position needs to be capable of identifying from where and in what way is the flow of fund needs to be organised.

Both finances as well as the accountant department needs to work parallel to reap the benefits for organisational good. Accounts department holds the responsibility for calculation and bookkeeping for ascertaining the value of stock and monetary assets. While the financial officer must be supportive in the implementation of strategy such as “Just in Time” inventory system of management.  The “Just in Time” phrase implies towards the material delivery on sites suggesting that material shall be delivered only when it is required. This indicates that there will be no stock holding. JIT strategy turns out to be superior from other forms of strategy as it helps in reducing the cost and enhancing the overall productivity (Yang, Burns & Backhouse, 2005). In the case where a situation occurs during construction process and process is intruded as a result of material shortage it shall induce the costing causing it to be higher than the shortage rate, which is often employed in the inventory management system.

Critical review on being a chief financial officer

Therefore, the financial officer is required to consider all factors before applying any strategy within the inventory management system.

Title of project

The title for my project is “Effects of Just In Time in inventory management in the construction business”.

Introduction

 “The Impact of JUST IN TIME in Inventory Management in Construction Business”

This report is intended for developing a quick and proactive process in the development domain that is effectual for a nation’s economic growth. Just in Time refers to an inventory management system, which is employed by companies to augment their efficiency, effectiveness and minimise waste coupled with a reduction in time consumed to receive material as they are received only when the production process requires them (Dubois & Gadde, 2002). The management ought to predict the demand for raw materials very precisely. The project helps in understanding how the inventory management system is impacting the construction business and how the companies are benefitting from it. The present paper will discuss the “what if and what if not” this mechanism is executed by the companies.

Construction business follows a standard segment in every state in bringing changes to a country’s infrastructure. New structures continue to be fabricated every day. However, these changes appear to be happening very swiftly. The world expects display area in the financial management of the nation. The Construction business carries its individual skin surface, which must be understood on the off likelihood, that it requires performing effectively and viably. 

The JIT system toward material management seems to be advanced in comparison to a Just In Case system in the context of mitigating cost and augmenting efficiency under the majority of the situations faced by developed nations (Satoglu & Sahin, 2013).

The construction sector is not exactly properly understood in various countries. People are bugged irrespective of whether it is a sector or a component, and there is usually a belief among the public regarding such themes. The application of this approach in the construction sector varies considerably from its application in the manufacturing sector because both these sectors have distinct production types and the construction industry has higher uncertainty and complexity. Moreover, it is even more overwhelming in making nations a replacement than in one that has been created. There are several reviews that have investigated to be completed that clarifies the enhancements, improvements and general implementations of this region; on the contrary, the circumstances are presently not all that acceptable (Yang, Burns & Backhouse, 2005).

Project Proposal

The construction sector is driven by schedule. Provided a well-planned schedule, if everyone follows the schedule, the work gets done conveniently, and maximum efficiency is attained. Nonetheless, it is rare that construction projects perform exactly as per their planned schedule. Business conditions keep on changing, delivering gets skipped, a design demands correction and so on. If a schedule has enough slack in the affected activities, transitions might not affect end dates (Isatto & et.al., 2002). At times there is a bonus in finishing a project before the schedule. However, more often it is not needed. In such cases, the most justified approach is JIT construction which offers a considerable augmentation in project time and cost management.

The main purpose of this project is to comprehend the challenges encountered because of mediocre management of construction sector and its different division in when this assignment will concentrate on inventory management technique of Just-in-Time.

A vital role is played by the Inventory management in an organisation. A lot of assets are bought by spending billions in order to improve the industry, and this also means that a lot of money is also being wasted in order to buy materials that are required for the improvement of the industry. Worthy loss can be marked in relation to construction resulting in mishaps due to the disorganisation of materials. At the time there shall be an inadequacy in materials, and at times there will be over the availability of materials these both are equally affecting the monetary aspect. A similar form of the problem relating to inventory management is being identified in Norway (Wang, Dulaimi & Aguria, 2004). Herein the study proclaims that this cement factory was encountering maritime inventory issues. A heterogeneous fleet, which was a bulk transport, shipping multiple unaltered cemented products from the production factory to regional silo station situated at the coast of the country. The inventory issues were present at both the silo station as well as the factory. The capacity of ship fleet was limited, and in certain cases, demand was higher than the overall capacity. To overcome the issue a systematic algorithm frame is established.

In the construction industry, the material management is taken as the utmost qualified employment. Its role is to calculate the every singular aspect; setting in the request for the correct sum at the correct time and with that right amount is a major aspect of testing (Harris & McCaffer, 2013). Along with this, choosing of merchants, acceptance of merchandise, total capacities are all significant components to be considered for an effective operation to be conducted.

Problem Statement

As per Material to a great extent adds to the overall cost of development. The material is now and then demanded for weeks or even during the months in the case of necessity, which is prompted due to the uneconomical stock for the development of distribution or local centre (Egbu, 2004).  The building material stock address cost to store, cost to get as well as the certification cost to get ready for theft and cost created when the stock gets the chance to be unmistakably old.

It is observed in the construction industry that the development times of materials rely upon the pace of work movement. Regardless, there periodically concede of the things at a requisite time, which may cause additional stock within the Industry. In context to the difference in material causing leading impact to the money related measures in the overall assignments. The reason behind this paper is to create acknowledgement about the exchanging draw control and push control, for interest related development delay. A layout of the JIT creation structure is presented and realised. JIT ensure that suppliers pass on directly to the site to finish either a reduction of stock or zero inventories as by this way a reduction is caused by the progress cost (Kopetz, 2011). The obstruction of change of anything, in this term improvement of building method due to parts and material starvation impel costs which may be more noticeable than inadequacy cost, as normally used as a piece of stock models. In this situation, it is basic to comprehend the Push and draw control strategy of the business so that, the affiliation will be shielded from gigantic loss of cash (Ball, 2014). In this manner to get some answers concerning the Inventory association in Construction Industry, it will help the fresh period to comprehend about the effect of honest to goodness Inventory association on general meander and besides on the economy of the nation.

The aim of conducting this report is to vividly clear all the critical problems within the inventory management associated with the construction business, its usage, it’s crucial points, harms if any identified, furthermore the overall review dealings with a request associated with gushing appeal:

• In what manner does the inventory management have an influence on the construction business?
• What possibly are the likely consequences to be faced by the industry as a result of the poor inventory system of management?
• What does the inventory manager do to undertake an action in the particular circumstances?
• What are the likely grounds for improper Inventory Management framework?
• What variables can be used to promote inventory management in the construction market?

            The report critically analyses the part of the issue, which shall be reflected in the paper and also how the construction industry shall promote a relevant strategy for the coming time in context to inventory management.

The “Just in time” is a stock framework wherein the materials are quite recently asked for and got, as and when they are required in the overall generation technique. The target of this technique is to diminish the expenses by saving money on overhead stock expenses (Chiasson & Davidson, 2005). The association must have the ability to decisively figure enthusiasm for items and endeavours for the moment to spend another way, which is reasonable. It won’t build structures that will have the imperative expert sufficiently to make the last possible second for future events, as it doesn’t oversee future events. JIT stock control has a couple of central focuses over customary models. Overall the generation run remains short that means the assembling can move ahead with one write to another effectively. The organisation can use the procedure to reduce the cost by eradicating the stockroom stockpiling needs. Furthermore, it altogether spends less amount of money on the crude resources as they acquire purchase appropriately to construct the item and nothing else (Yiu & et.al., (2006). Nonetheless, the system is highly significant and often used in the developing countries. It is also seen that in developing countries the contractor is compelled to preserve an overstock of inventories in certain cases wherein it is difficult managing the uncertainties in the entire construction process and supply chain. This condition being as it is, the additional merits resulting this investigation propositions are:

• It shall update the situation to deliver an effective task performance within the organisation (Zadeh & et.al., 2008).
• This proposition is assistive for directors to accentuate the errors occurring within a task.
• This report shall be advantageous for those that are novel in the construction site.
• The losses can be investigated y the leader through the help of this report in an effectual manner (Crawford, 2005).

For an effective analysis of project the below-specified methodology was employed:

Literature Review:

Journals and books are explored thoroughly to guide us in this report. Different articles and Google books recording the relevance of the specified topics and belonging to varied source were constantly focused and information was broken down to generate valuable results for the stock organisation in the construction industry (Fellows & Liu, 2015). It is imperative for doing the written work overview before concluding about the task, ensure clear vision, comprehending on what needs to be done with certainty and what shall be our specified results. Whatever be the case it difficult to conclude results yet it is possible predicts a possible result as it shall be better to face execution within the field than to wander.

Data Collection Method:

The collection of information for this topic was discrete. There are two types of methods to collect data one is Quantitative, and another one is a Qualitative method (Pennington & et.al., 2004). The Quantitative methods are used to figure out the value in specified number or the overall quantity in fixed value form. While in the case of Qualitative method use of figures, bar, mathematical calculations, pie chart, graph, etc.

The monetary oriented professionals are required to focus on the:

• The volume of stock
• Mobility of stock (Pulignano, 2002)
• Frequent valuation of stock

So in the starting initial stage, a written evaluation shall be made with a complete accuracy of information in written, and the results are measured in the light of a distinctive class.

GANTT CHART

To complete the project following timeline is conducted.

Task	Initial date	Finish date	Duration (in days)
Initiation Project proposal	3/12/2016	23/12/2016	20
Completion Literature review	24/12/2016	5/1/2017	12
Total Data collection & analysis	6/1/2017	18/1/2017	12
Submission of Project report	19/1/2017	10/2/2017	22

Reference

Balaguer, C. & et.al., (2013). Flexible field factory for the construction industry. Assembly Automation, 33(2), 175-183.

Ball, M. (2014). Rebuilding Construction (Routledge Revivals): Economic Change in the British Construction Industry. Routledge.

Booch, G. (2006). Object oriented analysis & design with the application. Pearson Education India.

Burgess, J., Sullivan, A., & Strachan, G. (2002). Long service leaves in Australia: rationale, application and policy issues. Labour & Industry: a journal of the social and economic relations of work, 13(1), 21-38.

Chiasson, M. W., & Davidson, E. (2005). Taking industry seriously in information systems research. Mis Quarterly, 591-605.

Crawford, L. (2005). Senior management perceptions of project management competence. International journal of project management, 23(1), 7-16.

Dubois, A., & Gadde, L. E. (2012). The construction industry as a loosely coupled system: implications for productivity and innovation. Construction Management & Economics, 20(7), 621-631.

Egbu, C. O. (2004). Managing knowledge and intellectual capital for improved organisational innovations in the construction industry: an examination of critical success factors. Engineering, Construction and Architectural Management, 11(5), 301-315.

Fellows, R. F., & Liu, A. M. (2015). Research methods for construction. John Wiley & Sons.

Harris, F., & McCaffer, R. (2013). Modern construction management. John Wiley & Sons.

Isatto, E. L. & et.al., (2002). Material waste in building industry: main causes and prevention. Journal of construction engineering and management, 128(4), 316-325.

Kopetz, H. (2011). Real-time systems: design principles for distributed embedded applications. Springer Science & Business Media.

Pennington, D. W. & et.al., (2004). Life cycle assessment: Part 1: Framework, goal and scope definition, inventory analysis, and applications. Environment international, 30(5), 701-720.