The predating chapter discussed the research methodological analysis of this survey and here the chapter is concentrating on develop a theoretical account to foretell avoid the hold in material bringing in BOI approved undertakings in Sri Lanka. This chapter discusses the relationship between the building stuff hold and other variables, informations analysis method. Further it has been described the dependability of the theoretical account and how it vary from practical state of affairs.
5.2 Data aggregation
The study has been conducted utilizing the structured questionnaires and two types of selected samples. The samples of Client in the building industry were selected from ongoing undertaking and finished undertaking fundamentally falls under two types. And I take structured interview with client contractor adviser provider and BOI. The respondents of 10 each from ongoing and Finished Project in client organisations were responded. Following table 5.1 expresses the figure of questionnaires of each type of samples in the questionnaire study.
Undertaking
Ongoing Undertaking
Finished Undertaking
Samples
10 respond out of 12
10 respond out of 12
Table: 5. : Number of respondents in questionnaire Survey
5.3 Contractors buying section engagement and client outlook
Client was asked to rate how frequently the contractor ‘s buying section is involved and client ‘s outlook on contractor ‘s buying section ‘s engagement in following 10 different phases of a purchase. How frequently was graded on five measure graduated table ; ne’er, non frequently, reasonably frequently, frequently and really frequently.
A
A
Contractor performanceA
Client NeedA
A
Factor
RII %
Rank
RII %
Rank
1
Budget citation
76
5
72
7
2
Design of the proficient specification
41
10
59
10
3
Find suited provider
81
2
69
9
4
Evaluate suited providers
80
4
73
6
5
Sent petition for citations
70
8
72
7
6
Evaluation of citations
66
9
77
4
7
Concluding choice of provider
72
6
81
2
8
Concluding dialogue
72
6
77
4
9
Ordering
86
1
81
2
10
Delivery follow up
81
2
82
1
Table: 5. : Contractors buying section engagement and client outlook
Here, RII was conducted to place important factors from client ‘s point of position that how frequently the contractor ‘s buying section is involved and client ‘s outlook on contractor ‘s buying section ‘s engagement in following 10 different phases of a purchase and rank both set of factor are rank separately.
Harmonizing to the above tabular array client want to give importance to these factors from contractor side, there are bringing follow up, telling, concluding choice of provider, rating of citations and concluding dialogue. And contractor shall gave importance to these factors, there are bringing follow up, budget citation, telling, measure suited providers and happen suited provider.
Both parties, contractor and client do n’t wish to let hold in bringing of stuffs. But contractor attempt to cut down the cost of stuff and seek to increase his net income. Harmonizing to the above construct, client feels that contractor gives importance to the above reference factor. But client attempt to increase the quality of stuff and attempt to bring forth quality end product. Due to this ground client attempt to give importance to above mentioned factors.
Client demand of budget citation go back in the rank instead than what contractor has done in that undertaking. Most of my informations come from belongings developers. Main intents of those undertakings are built and sale, due to this ground client like to anticipate the high quality instead than worrying about cost of stuff.
Harmonizing to the above tabular array both parties of the undertaking mentioned bringing flow up come to look in the order of the rank. Harmonizing to above tabular array, we can come up to a decision that client attempt to cut down the hold in the stuff.
Other thing, both parties give importance to stuff ordination, because in BOI approved undertaking, client has to give proper attendings for stuff odering, otherwise, we cant acquire revenue enhancement duduction from custum in the port.
Contractor give proper attending to measure suited providers for stuff buying to avoid the hold of the stuff and acquire best award for citation, but client do non give importance to that factor but client give importance to Final choice of provider and Final dialogue of the provider instead than contractor.
Analyze client do non seek to let take determination to contractor for Design of the proficient specification, due to my informations of analysis for cause on BOI approved constructing undertaking such as belongings Development. Most of the undertakings in this sector in step and pay procumbent method, because contractor does non take duty to design of the proficient specification for that undertaking
5.4 Management factors set uping detaining bringing of stuffs
Factors which are discussed below are really of import factors in the building industry to avoid hold bringing of stuffs in the building industry.The building industry professional must see to keep as “ Very Effective ” degree. As a consequence of these activities, I found some direction factors which are consequence of hold in bringing of stuff that was identified through pilot study. They are as follows.
During this analysis the factors which have been obtained a RII mark of more than 80 % are recognized as the Very Effective, 60 % – 80 % are selected as Moderate Effective, 40 % – 60 % are selected as Somewhat Effective and less than 40 % are selected as non effectual in the building existent site. Harmonizing to the Questionnaire study, I got the information from the client that, how to experience those losing factors which consequence hold bringing of stuffs in BOI Approved undertakings
Factor
RII
Rank
Effectiveness
1
Proper entry of the papers of the BOI
90
1
Very Effective
2
Using project direction techniques
89
2
Very Effective
3
Coordination with BOI office people
88
3
Very Effective
4
Planing and coordination
88
3
Very Effective
5
certification system by client
84
5
Very Effective
6
Identify jobs and institute necessary, timely design and scheduling alterations
82
6
Very Effective
7
Communication among contractor, adviser, and the client
81
7
Very Effective
8
Contractor ‘s studies and certification
79
8
Moderate Effective
9
Undertaking be aftering to material buying planning
79
8
Moderate Effective
10
Centralized determination devising
75
10
Moderate Effective
11
Contractor ‘s material bringing agendas
75
10
Moderate Effective
12
Master plan accurate and complete
73
12
Moderate Effective
13
Proper readying of the Purchasing order
72
13
Moderate Effective
4
Storage installation on site
66
14
Moderate Effective
Table: 5. Management factors set uping detaining bringing of stuffs
Here, RII was conducted to place important factors from client ‘s point of position what factor are set uping in hold of bringing stuffs in BOI approved undertakings and how each factor is impact on building hold and cost in Sri Lanka.
My questionnaire informations focal point based on BOI undertaking under building industry. When we go through the BOI process it is defer from other undertaking. Due to important factors of BOI undertaking are different from other undertaking. Under BOI undertakings ‘ important factors are “ proper entry of the papers of the BOI ” , “ utilizing project direction techniques ” , “ coordination with BOI office people ” , “ planning and coordination ” , “ certification system by client ” , ” place jobs and timely design and scheduling alterations ” and “ Communication among contractor, adviser, and the client ” . Those factors are more important than other factors. But if we take this undertaking as normal undertaking so reply may be somewhat different. Some other factors may be become higher rank, such as “ proper readying of the buying order ” , “ maestro plan accurate and complete ” , “ contractor ‘s material bringing agendas ” , “ centralised determination devising and undertaking planning to material buying planning ” . These factors are really effectual factors in this undertaking besides.
5.4.1 Proper entry of BOI papers
Harmonizing to above rank, if it is the BOI blessing undertaking, the Proper entry of the papers of the BOI is really of import in these undertakings. Harmonizing semi construction interview, if client fail to subject the proper papers to BOI, client ca n’t acquire blessing from the BOI, so it leads to detain of the stuff and increase the cost. When we submit the papers to BOI, We must guarantee the truth of entire measure of material measurement sheet with suited pulling which are equal or less than BOQ measures. If the stuff measure may increase above the BOQ Quantity, BOI approved client must be submit proper Documentation to BOI and must acquire blessing.
5.4-2 Using undertaking direction techniques
Using proper undertaking direction techniques will prefer the BOI approved company to minimise the building costs. Cardinal factors are needed to be taken into consideration, which will include choosing an appropriate undertaking director. The undertaking director should be an experient professional who can pull off the undertaking expeditiously. Understanding the functions of each squad member every bit good as pull offing them is critical facets of the undertaking director. Further pull offing the resources such as fiscal, natural stuffs etc will be the cardinal undertakings of the undertaking director. A well planned undertaking will assist the building company in footings of low cost operation. Because of the abovementioned grounds proper undertaking direction techniques has been selected as the 2nd penchant.
5.4.3 Coordination with BOI office people
Harmonizing to superior process, organizing with BOI office people is take topographic point 3rd rank in this agenda. There are multiple parties in engagement including contractor, client, adviser and authorities governments such as BOI, in Construction industry. It is the BOI approved undertaking which gets duty free from the BOI. So maintain proper Coordination between BOI and those client organisation thrusts to cut down the cost and hold of the material bringing.
5.4.4 Planning and coordination
Harmonizing to the common cognition, BOI approved company ca n’t avoid to cut down the cost and hold of the stuff buying without proper planning and coordination. In this survey, the 4th important factor is be aftering and coordination. Undertaking director has a responsibility to move in a mode which makes a proper planning in site and develop coordination inside of the company. He/ She have to look after each and every activity to keep proper cost controlling and he/she has to pull off them good.
In Construction industry squad work is indispensable. Therefore if does n’t hold proper coordination among the staff, He/she ca n’t guarantee success of the undertaking. First responsibility of the undertaking director is making good coordination among the staff. Undertaking director has to take most appropriate determination, sing all subsidiary ‘s sentiment
5.4.5 Documentation system by client
Increase the effectual certification system by client is the 1 of of import factor which is indispensable for BOI approved company to minimise the building costs and hold. Because contractor ever seek acquire more and more net income from the client. So if client fails to keep the information of the site, client ca n’t reason with contractor and ca n’t cut down the cost of undertaking. And it is the BOI approved undertaking, here client is to the full responsible for stuff buying through the BOI responsibility free BASIC. Client fails to keep the proper record maintaining about BOI ; He/she may lose some point to import responsibility free BASIC.
5.4.6 Identify jobs institute necessary and programming alterations
Other chief of import factor is placing jobs and timely designing and altering plan which increase the cost effectivity and avoid the hold of the material bringing. If any fluctuation is found out in the design or at existent site, proper individual gives to instruction to responsibility individual to work out that job instantly. It helps to avoid increase the cost and hold of the undertaking. Other thing, in the BOI approved undertaking, consequence of alteration in design and plan may make fluctuation from BOQ measure which are submitted to BOI when clip of blessing. So, client ca n’t import responsibility free BASIC for extra measure from the BOQ without permission to BOI which is increasing the cost of stuff. Due to this ground clients go through the glade processes which increase the clip of bringing of stuff.
Harmonizing with BOI individual unstructured interview when we import the stuff, amendss may be happen. On that clip we can claims from the insurance company and we inform to BOI who come and inspect and allow purchasing under Duty free BASIC. So here we must keep the proper certification of the client and place jobs solve instantly
5.4.7 Communication among contractor, adviser, and the client
Harmonizing to superior process, Communication among contractor, adviser, and the client takes topographic point in-between rank in this agenda. In Construction industry we have to work every bit squad including members such as client contractor adviser and etc. Keep the proper communicating among those parties and seek to work out twenty-four hours to twenty-four hours jobs instantly and acquire optimal solution are indispensable undertakings in building industry.
5.4.8 Contractor ‘s studies and certification
Harmonizing to the Questionnaire study, Contractor ‘s studies and certification besides catch in-between rank of this agenda. If contractor fail to keep the past information of the site, he/she ca n’t work out the job when it is happened.
5.4.9 Undertaking planning to material buying planning
Harmonizing to Questionnaire study, “ Undertaking planning to material buying be aftering ” takes topographic point in-between rank in this agenda. Undertaking be aftering to material buying planning is really importance factor in the building industry. Contractor gives of import to this besides. But client focal point based on BOI undertaking in the building industry due to this factor take topographic point in-between degree. If the professionals maintain proper stuff buying planning, it will be performed to better the cost effectual and avoid the hold of the stuff. Harmonizing to semi construction interview, Sri Lankan building industry did non give that much of of import to fix the stuff buying planning. Because the entire cost of undertaking is lesser than foreign state undertaking.
5.4.11 Centralized determination devising
Even though Centralized Decision Making is in the underside of the superior order, it is a really of import factor in the building industry. In Sri Lanka the Construction Companies did n’t present a proper communicating system with-in the organisation. It is really clear with the informations I ‘ve selected to carry-out the study in Colombo. Since they have non given importance to Centralized Decision Making it has taken 10th rank. The advantage of Centralized Decision Making is taking proper determinations, on clip. Equally good educated professionals are taking portion in determination devising ; the truth of the determination will be high. But on the other manus if the squad affecting taking determinations with disregards the current local status, the determinations will be less accurate.
If contractor professional used proper Centralized determination devising, he can cut down the cost and clip hold. So centralize individual should be selected as really effectual individual and contractor can set up the topographic point in Colombo. But if contractor working in a rural country he ca n’t pull off all buying in that topographic point, so if the contractor maintain the Centralized determination devising, he can acquire high quality stuff with less monetary value. And other thing contractor caput office people are making material purchase for other site besides. So if the contractor caput office individual buys stuff for two sites under him, he can acquire price reduction besides. So I like to gave of import to when the theoretical account readying.
5.4.12 Contractor ‘s material bringing agendas
Contractor ‘s material bringing agenda is other really of import factor in the building industry. But harmonizing to the Questionnaire study, client focal point based on BOI undertaking for material bringing agenda. Due to this ground, it has gone back in the superior order. Keep the proper stuff bringing agenda is aid to keep material bringing on clip and contractor can acquire to cognize what are the stuff available at site and what are material privation to import from foreign state. Harmonizing to that contractor can pull off the site in cost effectual mode and avoid the hold besides.
5.4.13 Master plan accurate and complete
“ Maestro plan accurate and complete ” is really of import factor to avoid the delaying bringing of stuff in building industry. But harmonizing to the Questionnaire study, client focal point based on BOI undertaking for Master plan accurate and complete. Due to this ground, it has gone back in the superior order. Prepare and keep the accurate Master plan aid to pull off the site to accurate manner and keep swimmingly. Here client must look into the advancement of the undertaking. If the contractor girl to keep the maestro plan of the undertaking, it leads to clip infest and be overproduction of the undertaking due to that ground, contractor will lose net income, due to this ground contractor attempt to cut down the Quality of work and acquire more money. It is aid to complete the undertaking before the due day of the month of the undertaking bringing. If the contractors fail to bringing of the undertaking on clip, client lost his money besides.
5.4.14 Proper readying of the buying order
Proper readying of the Purchasing order is really of import factor in the building industry. But harmonizing to the Questionnaire study, client focal point based on BOI undertaking for Proper readying of the Purchasing order. Due to this ground, it has gone back in the superior order. But in Sri Lanka contractor did n’t fix in proper manner, due to the ground of entire cost of undertaking is lesser than foreign state undertaking.
5.4.15 Storage installation on site
Storage installation on site depends on country of the site. Other think most of my informations base on Colombo and land value is high in Colombo country. So it is the ground for limited country for material storage. Contractor must see the stuff storage and bringing the stuff when that undertaking really wants. Due to that ground contractor must keep proper stuff bringing agenda without hold.
5.5 Model for bringing of stuffs
Harmonizing to above Table: 5. analyze, client ‘s point of position some direction factor are set uping really effectual in hold of bringing stuffs in BOI approved undertakings and how each factor is impact on building hold and cost in Sri Lanka. There are some factor, “ proper entry of the papers of the BOI ” , “ utilizing project direction techniques ” , “ coordination with BOI office people ” , “ planning and coordination ” , “ certification system by client ” , ” place jobs and timely design and scheduling alterations ” and “ Communication among contractor, adviser, and the client ” . Construction industry professional must develop these direction factors really effectual ways specifically for BOI undertaking.
Under BOI blessing undertaking, fixed reorder point and fixed order measure and Cyclical or fixed order interval system are non possible for building industry because, when we get the blessing from the BOI, they do n’t let for big measure instead than the needed measure under this theoretical account. We are unable to acquire merely for required measure and unable to alter the order measure under this theoretical account besides.
Factor
( MRP ) systems
just-in-time ( JIT )
Build smart
Proper entry of the papers of the BOI
possible
possible
Possible
Using project direction techniques
possible
possible
possible
Coordination with BOI office people
Not possible
Not possible
Possible
Planing and coordination
possible
possible
possible
certification system by client
Not possible
Not possible
possible
Identify jobs and timely design and scheduling alterations
possible
possible
possible
Communication among contractor, adviser, and the client
Not possible
Not possible
possible
Contractor ‘s studies and certification
possible
Not possible
possible
Undertaking be aftering to material buying planning
possible
possible
possible
Centralized determination devising
possible
Not possible
possible
Contractor ‘s material bringing agendas
possible
possible
possible
Master plan accurate and complete
possible
possible
possible
Proper readying of the Purchasing order
possible
possible
possible
Storage installation on site
possible
possible
Not possible
Table: 5. : Model for bringing of stuff
Harmonizing to above theoretical account, I like gave of import Communication among contractor, adviser, and the client, Coordination with BOI office people and certification system by client.
Construction industry have major job of communicating among contractor, adviser, and the client under one networking. Harmonizing to the literature position study, it is possible to work out this job to suggest the theoretical account as Build smart instead than other. Because build smart is networking soft ware integrated with Candy Estimating besides. So building industry professional can utilize for this theoretical account for gauging intent and other characteristic of this theoretical account is Valuation Cost Ledger, General Ledger, Creditors, Debtors, Subcontractors, Plant & A ; Equipment Management, Stock Management, Fixed Asset Management, Cash Book, Bank Reconciliations, Creditor/Sub Contractor Cheques, Remittance Advices, Debtor Invoices, Plant Hire Invoices, Build Smart Business Intelligence, Document Management, Costing Reports and General Ledger Reports.
And other factor “ proper entry of the papers of the BOI ” , “ utilizing project direction techniques ” , “ planning and coordination ” , and ” place jobs and timely design and scheduling alterations ” possible to work out all three theoretical account besides.
Harmonizing to above analyze building industry professional used in build smart is best solution for BOI undertaking.
5.6 The conceptual theoretical account for effectual bringing of stuffs
Harmonizing to the literature study findings and unstructured interview findings the relationship between stuff holds in material bringing in BOI approved undertaking and other variables can be explained through a conceptual theoretical account. There are some independent variables which have correlativity among them. It has been interpreted through this conceptual chart.
Delay Factors
Mean ( in hebdomads )
Percentage of hold ( % )
df1
Delay in Preparation of measurement sheet.
11.5
4.85
df2
Delay in 3rd party approved. ( Without client and contractor )
12.75
5.38
df3
Delaies in BOI Engineer section approve.
16.2
6.83
df4
Unanticipated event from the provider state
36.15
15.25
df5
Transporting Delay
37.1
15.65
df6
provider Manu cabal hold
20.1
8.48
df7
Delaies in Clearing procedure
15.15
6.39
df8
Letter of recognition cogency period coating before the stuff achieve at site
18
7.59
df9
Delay with unfastened Letter of recognition ( Reason of client )
14.75
6.22
df10
Reason from the Customers ( Reject some stuff ) and Quotation Calling
17.25
7.28
df11
Fiscal job from the client
38.15
16.09
Table: 5. factor impacting effectual bringing of stuffs
Harmonizing to above tabular array 5.3, I calculated the mean hold of stuff buying for each undertaking from my questionnaire informations and I interpreted the average value of those factor harmonizing my information which was collected by me and calculated the per centum of those values. Finally I transferred that values to the below tabular array.
Harmonizing to the tabular array 5.3, the factors “ Shipping Delay ” , “ Fiscal job from the client ” and “ Unanticipated event from the provider state ” have the most effectual factors in hold. Those factors consist of 16 % , 16 % and 15 % severally of the entire delay.The sum anticipating undertaking continuance theoretical account when considered hold will be generated as follows
Preparation of measurement sheet
Consultation blessing
Citations naming and client
Supplier Manu cabal
Letter of recognition gap
Get BOI blessing for those stuffs
Transporting
Uncluttering Procedure
[ 1+4.85 % *15.75 % ]
[ 1+5.38 % *15.75 % ]
[ 1+7.28 % *15.75 % ]
[ 1+8.48 % *15.75 % ]
[ 1+6.39 % *15.75 % ]
[ 1+6.83 % *15.75 % ]
[ 1+15.65 % *15.75 % ]
[ 1+6.39 % *15.75 % ]
Weeks/Days
Weeks/Days
Weeks/Days
Weeks/Days
Weeks/Days
Weeks/Days
Weeks/Days
Weeks/Days
Required Duration
Calculation
Duration with hold
Entire Duration for Material Delivery without any outlook
Weeks/Days
Figure: 5. The conceptual theoretical account for effectual bringing of stuffs
From the above Figure 5.1, client is able to cipher the entire continuance with minimal hold. From the questionnaire study which I did, I calculate the norm of each undertaking when they are buying material clip over run under BOI approved undertaking. Then I interpret the average values of those undertakings and happen the stuff buying over tally.
Other thing is, required continuance alterations from individual to individual. So client have to happen needed continuance harmonizing to the past informations and leaden of those plants. After the informations aggregation we can happen the entire continuance of the stuff buying and client able to happen the single activity continuance besides. Then client has ability to give due day of the month harmonizing to what the existent continuance are. When the client maintains the existent continuance, if any hold happened through the activities in buying stuffs, client can pull off material buying without any hold. But if any purchases are done without any hold in single activity, client able to acquire the goods before the due day of the month. But above analyze, I used the average value of the stuff buying over tally. This value is 15.75. So material can accomplish to the site before the 15.75 % of the entire continuance. So it will non be a large consequence in buying activity and besides conclude that buying is non possible to go on without any hold harmonizing to the past life of the building industry under BOI buying.
Do you hold any fiscal job from the client?
Expect Duration
[ 1+16.09 % *15.75 % ]
Duration with hold
Is it possible to Letter of recognition cogency period coating before the stuff achieved at site?
Expect Duration
[ 1+7.60 % *15.75 % ]
Duration with hold
Is it possible to unanticipated event from the provider state?
Expect Duration
[ 1+15.25 % *15.75 % ]
Duration with hold
Entire Duration for Material Delivery with outlook
Weeks/Days
Figure: 5. Extra theoretical accounts for effectual bringing of stuff
Other thing is some factor consequence in the material hold but that is non ever go oning. But if client knows is it possible to go on so client can include that besides. There are some factors such as Letter of recognition cogency period coating before the stuff arrives to the site and fiscal job from the client and unanticipated event from the provider state which are included by me under above tabular array. So we can take both continuance and hold and can cipher the entire continuance for Material Delivery with nowadays of these factors. Harmonizing to above Figure 5.3calculation client able to give due day of the month for all activity.
5.7 Drumhead
Client was asked to distinguish between the Contractor public presentation and client demand for material bringing 10 activities. Harmonizing to that I find the consequence of contractor and client attempt to cut down the hold in stuffs bringing. Harmonizing to the direction factor analysis, Under BOI undertakings ‘ important factors are “ proper entry of the papers of the BOI ” , “ utilizing project direction techniques ” , “ coordination with BOI office people ” , “ planning and coordination ” , “ certification system by client ” , ” place jobs and timely design and scheduling alterations ” and “ Communication among contractor, adviser, and the client ” . Harmonizing to that I proposed the theoretical account as build smart. Geting the average value each Delay factor and develop the conceptual theoretical account for effectual bringing of stuffs.