Every Activity at Construction site need to be systematically mapped and reviewed for effective and efficient working and better results.
In past, I was executing a 2x600 MW thermal power project in West
Bengal for Central Government. I was representing a EPC contractor, a blue chip
company.
I was Head of Electrical and was inducted from HQ, mid-stream
of the project.
Erection activities were on peak and testing had started. I
got stuck-up on some issues with a leading electrical package provider (a MNC).
They were not sending the testing & rectification support at site. I had
taken up the issue with their project manager at Bangalore who apprised me that
Payments have not been released for more than one and half years. He had
submitted the whole list of pending bills.
I had taken stock of the pending bills with Accounts
department and found some outstanding amount in books. I had taken up the
matter with higher ups and ensured that such payments are in priority list and
were released.
Some more bills were already cleared by Electrical department
in past and were pending for a long period for SAP posting after careful
scrutiny by Accounts department. When the issue was raised, Bills were cleared by
them after constant chase and persuasion. Again I ensured that such payments
are in priority list of top management and were released.
Then, I asked the project manager at MNCs Bangalore office
for providing field support. Satisfied with some flow of funds from my end, he
had arranged the visit of testing engineers to site and I achieved some work in
progress. Some systems were commissioned.
But, in such big projects, issues keep on arising. Again, I
approached the project manager at MNCs Bangalore office and this time he
informed me that he will support when all the pending payments are released.
I observed that a supply bill was pending for the last 3
years and was not traceable in accounts department. We were presuming that its
pending for posting on SAP somewhere in pile of bills in accounts department.
Contrary to that, I traced the material in Store’s receipt section
at site and found that material is lying in their shelf for the last 3 years
and papers either not prepared or not cleared. That’s why material was not sent
to stores and was not being reflected in their ledger even.
This material was also required for completion of erection of
one the electrical equipment but at a later date.
Immediately, store’s material receipt section had prepared the
documents. Material was inspected and cleared and in few days accounts clearance,
SAP posting and disbursement were arranged.
MNC had supported the field testing and rectification works,
there on and equipment and systems were commissioned.
This small episode, reflects the lack of MIS of different
departments/sections and its day to day chase by Project Management team /
Construction Management team especially at construction site.
People are mostly busy in identifying bigger issues and
their resolve.
Construction support activities are not properly mapped and
most of the construction site work is done on manual mode.
Its possible that Construction schedules may change time to
time with different paths and approach, but support functions like accounts,
material receipt, stores etc., shall be digitized for each and every activity
and must be updated on day to day basis with MIS of even pending issues.
Some MNCs have their effective system in force but they also
bulged at the peak of site activities. However, Indian companies need a lot of
improvement in their working.
Organizations need to strengthen their Organogram and
implement them religiously. Especially peak time manpower resources shall be there
in place well before the time. Just in time (JIT) concepts are not workable / productive,
most of the time, in construction field.
There must be three tier reviews of MIS so that most of the routine type issues are sorted out at tier#1 level and then some at Tier#2 level which may be resolved with senior management level intervention and typical issues are reflected at Tier#3 at top management level.
#casestudy #constructionmanagement #projectmanagement
