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The Principles and Applications of Lean Construction in Singapore

This document summarizes a research paper on lean construction principles and applications in Singapore. The paper examines prerequisites and barriers to implementing lean construction locally. Through interviews with construction managers, the study found that only some lean features have been adopted in Singapore. The biggest barrier is cultural resistance to change. Lean construction aims to simultaneously consider product and process development to better meet client needs and improve the construction process and outcomes. Key lean principles include specifying value, identifying and mapping the value stream, and allowing work to flow without interruptions.

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0% found this document useful (0 votes)
106 views

The Principles and Applications of Lean Construction in Singapore

This document summarizes a research paper on lean construction principles and applications in Singapore. The paper examines prerequisites and barriers to implementing lean construction locally. Through interviews with construction managers, the study found that only some lean features have been adopted in Singapore. The biggest barrier is cultural resistance to change. Lean construction aims to simultaneously consider product and process development to better meet client needs and improve the construction process and outcomes. Key lean principles include specifying value, identifying and mapping the value stream, and allowing work to flow without interruptions.

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rmdarisa
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The principles and applications of lean construction in Singapore

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THE PRINCIPLES AND APPLICATIONS OF LEAN CONSTRUCTION IN
SINGAPORE
Mohammed Fadhil Dulaimi1 and Caroline Tanamas2

ABSTRACT
Lean construction is a new way to design and build capital facilities. It advocates the
simultaneous consideration of product and process development using simultaneous
engineering. This philosophy has challenged the belief that there is always a trade off
between cost, time and quality. This study examines the pre-requisites and barriers for the
possible implementation of lean construction in the local industry. Interviews are done with
the managing directors and construction managers from selected Singapore ISO 9000
certified construction firms. From the research findings, it is found that only certain features
of lean construction have been implemented locally. The biggest barrier is the cultural
resistance to change.

Key Words: Lean construction, Quality, Barriers, Singapore, Value, Waste.

INTRODUCTION

The chronic problems of construction are well known: low productivity, insufficient quality,
poor co-ordination, high costs etc. (Eaton, 1994). A number of solutions have been proposed
to address parts of these problems. However, these tend to be versions of procedures adopted
by the manufacturing sector and modified to suit the conditions of the construction industry
(Koskela, 1992a). For example, Quality Assurance (QA) has been advocated as a remedy for
poor quality (BSI, 1987). Further suggestions included a computerised integration of design
and procurement as a remedy for low productivity (Betts, et al., 1994) and electronic data
interchange for poor co-ordination (Dym & Levitt, 1991).
The Construction 21 (C21) report (1999) reviewed the state of the construction
industry and Singapore and criticised its performance. One of the reports recommendations
to improve the efficiency of the construction industry is for the industry to adopt lean
construction (LC) as one of the emerging global trends and recommends its implementation
to ensure the competitiveness and relevance of the Singapore construction industry
Presently, Lean Production (LP), which stresses on the important theories and principles
related to production processes, is being developed and implemented in manufacturing
(Shingo, 1992; Schonberger, 1990; Plossl, 1991) to rectify the present situation.
Koskela (1993) reviewed the concepts, principles and methods of LP and analysed their
applicability in construction. He also found that 6 to 10% of the total project costs in Sweden

1
Assistant Professor, Department of Building, School of Design and Environment, 4 Architecture Drive,
National University of Singapore, tel: 0065-8746501, fax: 0065-7755502, [email protected].
2
Building Batchelor Student, Department of Building, School of Design and Environment, 4 Architecture
Drive, National University of Singapore.

1
and the USA to be waste. Melles (1994) found the instruments of LP to be in existence in
construction; however, it enforces a real change in attitude to utilise them in order to be lean.
Koskela, (1992b) criticised conventional construction for being pre-occupied with
managing only tasks and flows are neglected. This is seen the main reason that construction
is characterised by a high share of non value-adding activities. One case study taken in USA
in 1998 shows remarkable benefits of implementing LC (Garnett, et al., 1998):
• Office construction times reduces by 25% within 18 months
• Schematic design reduces from 11 weeks to 2 weeks
• Turnover increases of 15-20% (Pacific Contracting)
• Satisfied clients looking to place repeat orders
• Reduction of project costs

THE CONCEPTS OF LEAN CONSTRUCTION

Lean Production (LP) was developed by Toyota production system in the 1950s led by
Engineer Ohno who was committed to eliminating waste (Howell, 1999). The term "lean"
was coined by the research team working on international auto production to contrast it with
craft and mass forms of production (Womack, et al., 1991).
The core concept behind LP is to enable the flow of value creating work steps while
eliminating non-value steps i.e. waste by focusing on fast cycle times. When waste is
removed from the production process, cycle times drop until physical limits are reached.
Value-adding activities are however, first improved through internal continuous
improvement and fine-tuning of existing machinery. Only after these improvement potentials
are realised, major involvements in new technology are considered. The primary goal of LP
in Japanese is Muda, that is, to avoid waste of time, money, equipment etc (Shingo, 1992).
Lean construction (LC) accepts Ohno's production system design criteria as a standard of
perfection (Howell, 1999). Waste is defined by the performance criteria for the production
system. Failure to meet client’s unique requirements is waste. The evidence of waste in
Ohno's terms is overwhelming (Koskela 1992a). Waste in construction and manufacturing
arises from the same activity-centred thinking. Howell (1999) argues that there is a need to
maintain pressure on every activity to ensure continuous improvement through the reduction
of cost and duration of each activity.
Lean theory, principles and techniques, taken together, provide the foundation for a
new form of project management. From roots in production management, LC has produced
significant improvements particularly on complex, uncertain, and quick projects. LC is a new
way to design and build capital facilities. The objective of LC is to better meet client’s
demands and dramatically improves the Architectural/Engineering/Construction (AEC)
process as well as product. LC advocates the simultaneous consideration of product and
process development.
Managing construction under lean is different from typical contemporary practice
(Howell, 1999) because it:
• Has a clear set of objectives for the delivery process
• Is aimed at maximising the performance for the customer at the project level

2
• Designs concurrently product and process
• Applies production control throughout the life of the project

PRINCIPLES OF LEAN CONSTRUCTION

Womack and Jones (1996) describe the business environment within which they see lean
techniques being successful. Five key principles emerge:

Specify Value
Value is defined by the ultimate customer’s needs through tools such as value management,
quality function deployment and simulation. These will define attributes which are
characteristics that deliver client’s satisfaction (Garnett, et al., 1998) and are created by the
MCs. Construction needs to adopt product focus that enables a long-term dialogue to be
started concerning the nature of value and how the product delivers it. The client requires a
building to suit his purpose and provides value for money. The vision that this product and
customer focus suggests is not new. Aspects of it have been alluded to it in many previous
reports (Atkin and Pothecary, 1994; Bennett, et al., 1988, 1989, 1996, 1998; Gray, 1996) but
the ideas have not been developed by the industry. In construction, specifying value comes
before design (Ballard and Howell, 1998).

Identify And Map The Value Stream


The value stream identifies all those steps required to make a product. Identifying value
stream, the way value is realised, establishes when and how decisions are to be made. The
key technique behind value stream is process mapping for a very specific reason: that of
understanding how value is built into the building product from client’s point of view. Value
stream maps can be understood as processes flow charts that identify what action releases
work to the next operation. Mapping brings choices to the surface and raises the possibility
of maximising performance during construction. Normally, maps are prepared at the project
level and then decomposed to better understand how the design of planning, logistics and
operation systems work together to support customer value.
At a strategic level, it offers a perspective on defining what is to be done. By taking
this top down approach, the idea of identifying value streams such as the structure and the
building envelope and considering how these systems are to be designed, supplied and
constructed, offers a different way of organising for construction.
At a more tactical level, the value stream map can identify where waste lies in a particular
process and this process analysis shows how value stream can be achieved more effectively.
A set of all the specific actions required bringing a specific product through:
• Problem solving task running from concept through detailed design and engineering
to production launch.
• Information management task running from order taking through detailed
scheduling to delivery.
• Physical transformation task proceeding from raw materials to finished products in
the hands of the customer.

3
Flows
Flows are characterised by time, cost and value. Resources (labour, material and construction
equipment) and information flows are the basic units of analysis in LC. There are
controllable and uncontrollable flows. Controllable flows such as materials or instructions
from the warehouse or management respectively. Uncontrollable flows such as suppliers’
provisions of resources and design information.
Strategically, flow is concerned with achieving a holistic route through the means by
which a product is developed. It attacks the fragmentation that is inherent in the industry
today by revealing it to be highly wasteful. Many have recognised this wastefulness (Latham,
1994) and the leading solution is seen to be partnering. Bennett (1998) points out that early
stages of partnering are necessary pre-requisites for improving construction. However,
partnering remains only a partial solution.
Lean works to eliminate places where value-adding work on material or information
is interrupted. In construction, this may mean repackaging work so that parts of the project
can proceed without completion of others and/or assure that resources are delivered in the
order required and transported directly to the installation location (Howell and Ballard, 1998)
to prevent double handling.
Construction problems are caused by negligence of flows. The construction process is
seen as a set of activities, each is controlled and improved as such. Conventional managerial
methods like Critical Path Method (CPM) deteriorate flows by violating principle of flow
process, design and improvement. They concentrate on conversion activities. The resultant
problem in construction tends to compound and self perpetuate.
Under lean thinking, improvement is possible by reducing uncertainties in workflow.
Redesigning the planning system at the assignment level is the key to assuring reliable
workflow and this step has to be implemented early.

Pull
At a strategic level, pull identifies the real need to deliver the product to the customer as soon
as he needs it. The traditional construction process pushes the client into an often-protracted
development process where risk and uncertainties are prevalent. The principle of pull
suggests a decision where the ability to define quickly what the client needs from a building
in relation to his business and subsequently customising and deliver them more predictably
when the client requires them.
Three types of inventories need to be minimised:
• Material and design.
• Labour and its tools.
• Intermediate work product that has not been exploited.

Perfection
This is a key strategic level because what it defines is the need for this way of working and
organising construction products to become a way of life with an inherent culture. To achieve
perfection means constantly considering what is being done; how it is being done and
harnessing the expertise and knowledge of all those involved in the processes to improve and

4
change it. With continuous improvement (Japanese: Kaizen) done and with waste eliminated
along the flow process, perfection is the ultimate sweet reward that companies can achieve.
In essence, LC is a project delivery system founded on the reliability and speedy delivery of
value. Tools and techniques such as kaizen, simultaneous engineering and strategic alliances
with the suppliers are in essence the result of applying these five main principles to what is
already being done at a tactical level. The essential elements of LC can be examined
separately but the benefits can only be achieved by the holistic approach of all the elements.

ISO CERTIFICATION – BUILDING BLOCK OF LC

The challenge that Kaizen is originated and employed solely for use in the Japanese culture
(Green, 1999) is taken up when the Western version of Kaizen is developed. This modified
version is part of Total Quality Management (TQM) based on certification according to
International Organisation for Standardisation (ISO) 9000. TQM includes Quality Assurance
(QA) and Quality Management (QM), which coincide with ISO roles.

Relevant ISO 9000 clauses for Lean Construction

The research has examined the relevance and compatibility of ISO 9000 core and supportive
processes (figure 1) to lean construction.

Quality System Elements: ISO 9001

Core Processes: Supportive Processes:


• Contract Review (4.3) • Management Responsibilities
• Design Control (4.4) (4.1)
• Purchasing (4.6) • Quality Systems (4.2)
• Purchaser supplied Product (4.7) • Document Control (4.5)
• Process control (4.9) • Product Identification (4.8)
• Inspection/Testing (4.10) • Inspection/Test Equipment (4.11)
• Non-Conformance control (4.13) • Inspection/Test Status (4.12)
• Corrective Action (4.14) • Quality Records (4.16)
• Handling, Storage, Packaging and • Internal Audits (4.17)
Delivery (4.15) • Training (4.19)
• Servicing (4.19) • Statistical Methods (4.20)

Figure 1 ISO9000 clauses and its comparative LC principle

5
CORE PROCESSES
1. Design Control
Companies need to have design verification and validation procedures with adequate controls
to assure an acceptable design (Peach, 1997) and ensure the client’s requirements are
confirmed thus reducing the incidents of rework. The principle of value specification through
the instrument of customer orientation coincides with this clause. This is particularly crucial
for contractors undertaking D&B projects where they are expected to design most parts of the
building. Internal reviews are to be carried out at different stages of the design process since
the estimated cost of executing a change due to design error is five times more at the site than
at the drawing board (Lam, et al., 1994).
2. Purchasing
Under this clause, the performance of the SCs and the suppliers are assessed, recorded and
reviewed on an annual basis (Lam, et al., 1994; Yeoh & Lee, 1996) thus selection can be
based on these assessments. LC’s principle of making the value flow (section 2.5.3) through
strategic alliance with the suppliers (section 3.2.5) corresponds with this clause. In addition,
it also overlaps with the principle of pull (section 2.5.4) since erratic and slow delivery can
be minimised on the suppliers’ part as it is founded on strong relationship.
3. Process Control
Controlling construction processes involves the identification, planning, monitoring and
controlling of operations. A process chart has to be drawn, indicating the whole construction
process from reception of invitation to tender, to the construction and maintenance stages
(Lam, et al., 1994; Yeoh & Lee, 1996). This is similar to LC’s principle of mapping the value
stream, identifying the steps where value can be realised, and eradicating waste in the
process. Good communication and process structures ensure that any foreseeable problems
are openly discussed and the updated information disseminated downstream smoothly.
4. Inspection/Testing
The material controller is to inspect the quality of the delivered material by reviewing the
Delivery Order and the Purchase Order. Any non-conforming material is to be reported to the
Project Manager (PM). This requires the employee to work as a team within the principle of
making the value flow since any defective material transfers down the construction process
has become part of the building structure and it entails more cost to rectify the error.
5. Corrective Action
Peach (1997) contends that this clause ensures an organised method for continuous
improvement while Lam, et al., (1994) feels that this helps the firm in monitoring their
failure costs in any project following the control of non-conformances. Kaizen principle is
involved since the ultimate goal is in satisfying the client’s needs. Flow principle is included
as there is a need to remove obstacles that can hinder the smooth transition of the materials
physical transformation.
6. Servicing
During the Defects Liability Period (DLP), the MCs are still responsible for any defects in
the building works that arise during this time. When defects are related to the MC’s works,
the PM appoints the site engineer to rectify them. The same applies to the nominated SCs.
Such follow up action tallies with the mentality of customer orientation.

6
SUPPORTIVE PROCESSES
1. Management Responsibility
This requirement involves developing leadership policies and project plans directed towards
quality in construction. It is vital to delegate responsibilities and authority to perform
required functions contributing to quality within the organisation (Battikha & Russell, 1998).
Communication throughout the organisation is enhanced with the implementation of this
requirement (Peach, 1997). It is noted that close management involvement signals a
commitment to quality and quality management systems must be initiated ‘top-down’ for it
to be effective.
This clause is actually the very starting point in which LC can be initialised since only
top management is empowered to implement new systems with the aim of being better in
identifying the changing needs of the clients.
2. Quality Systems
A quality manual has to be written in order to ensure that the client’s requirements are met
(Peach, 1997; Yeoh & Lee, 1996). Together with this manual are the work instructions,
project quality plan and inspection records. With quality system in place, there is consistency
in the way in which construction is done. This would provide a basis upon which
improvement can be documented so that such valuable lessons learnt could be applied for the
next project.
3. Product Identification
Johnson (1993) notes that this clause refers to three types of identification systems that a
facility may use. Firstly, there must be means of tracing input from the source to the output.
Secondly, the contractor must be able to identify specific operations upon the output. Finally,
the ultimate destination of the output must be identified. In the construction industry, this can
be used to trace defective materials or equipment to its source. It also assists the MC in his
evaluation of SCs and suppliers.
This clause overlaps with the principle of making the value flow since the relationship of
the suppliers with the MCs is at stake. This can act as an impetus for all involved to be more
committed in their work and to co-operate as a team.
4. Training
The skills and knowledge of workers are vital to a construction project that aims to have few
defects and low re-working costs. Effective training programmes can result from feedback
programmes that identify areas for improvement (Johnson, 1993). Either in-house teams or
external trainers like the Construction Industry Training Institute (CITI) run by the Building
Construction Authority (BCA) can conduct the training programmes. This is appropriate as
the actions of participants affect the quality of the project. In addition, such courses
encourage the pursuit of perfection by harnessing the expertise of others and as a result, staffs
are more equipped to identify beyond the articulated needs of the clients

EVALUATION OF THE ISO 9000 SYSTEM


In measuring the effectiveness of the ISO 9000 systems, it must be linked with objective
measures to ensure that the constructed product has met the required quality (Al-Nakeeb, et
al., 1998; Low, et al., 1998; Hoyle, 1998). One such measure in Singapore is the
Construction Quality Assessment Scheme (CONQUAS). Keivani, et al., (1999) on a study of

7
the UK construction firm, highlights that the effectiveness of ISO 9000 registration depends
on correct implementation, formulation and interpretation of ISO procedures according to the
specific requirements of the firms.
In conclusion TQM is an integral concept of all units integrator of instruments in LC,
which results in a real change in attitude of employees. This can only be discovered 3 to 4
years after the commencement of the programme. TQM based on ISO 9000 is essential to
create an environment in which other instruments of LC can be worked on. Commencement
with other instruments only has very temporary nature. Though not all ISO clauses support
the concept of LC, it aids in shaping the attitude of the employees and provides the
groundwork for LC implementation.

THE RESEARCH
The study has carried out a series of interviews with local contracting firms. The main
objective was to assess the local construction industry’s receptiveness and readiness in
implementing LC. A total of 21 firms were approached and only 6 firms agreed to take part
in the exercise. Five firms are G8 registered firms meaning they can tender for projects in
excess of S$50 million and only one firm is G7 which means they can bid for projects worth
up to S$50 million. All the firms have attained their ISO certification and are associate
members of Singapore Contractors’ Association Limited (SCAL). Managing directors are
targeted as they are most familiar with the operation of their quality management systems
and they are in the position to implement new concepts such as LC.

RESULTS AND DISCUSSION


The following are the issues that have been identified as being barriers for implementing
certain aspects of LC.

Heavy Reliance On Poorly Skilled Foreign Workers


The construction industry has all along been cast as being in a hazardous and hot working
environment. Due to the poor image the local construction industry portrays, it is unable to
attract high calibre personnel to enter the workforce. This leads to the heavy reliance on
poorly skilled foreign workers to perform the bulk of the works. With the infiltration of the
latter in the workforce, the image that is cast to the society is not very positive, thus most do
not take pride in their work and the vicious cycle of it being a challenging task to employ
quality staff starts all over again. Although these workers are unskilled and perform most of
the works, the companies are unwilling and find it infeasible to train these ones more than the
necessary legislation requirement. The reasons are:
1. Government legislation
The short time period of work permit extension may not allow the firms to reap the full
returns on training the workers. The same contractor remarks, ‘ . . . permit is only maximum
four years, how many can you train? ’

8
2. Work background
The workers generally have agricultural background thus they do not have any experience in
construction. Even if they have construction related skills, there is a vast difference in the
home country’s standards from those practised locally.
This issue seems to have influenced the extent to which LC principles and instruments
have been implemented. One such aspect is supervision where contractors have to provide
extensive support and directions to such workers. This is considered to be waste in LC since
all the workers should be entrusted and empowered to achieve high quality works
independently to ensure flow is not disrupted through multi-functional groups. All the
respondents feel this is an indispensable feature to ensure quality work is produced unless
there is a drastic change in the nature of the workforce.
3. Language and education barrier
Not having received much education, the workers are unable to even read the drawings, thus
their supervisors and project managers play the crucial role of giving specific work
instruction. The problem is aggravated, as the speaking of different tongues does not allow
effective transfer of skills to the workers. One contractor explains, “we even have to use
gesture and body language to communicate to them what they have to do! They can’t even
read a simple drawing.”
All the companies also find that it is impossible to have multi-functional groups, an
instrument for LC due to the following reasons:
• The great number of diversified works and specialised technicalities involved in
construction.
• The tremendous amount of wet trades involve is simply too time consuming that there
is little time left to train the workers so that they can form a flexible multi-functional
task group that can accommodate to unforeseeable changes quickly.
Due to the foreign workers limited education level and lack of skills; they are also not
well equipped in identifying the value and mapping the value stream.
Massive use of the four design characteristics of Buildable Design, standardisation,
prefabrication, precast and repetitive building components, is suggested to suit the needs of
the locals where the team can be multi-functional in the same area of the work i.e. aligning,
propping, installation of precast items such as beams, columns, slabs etc. This is also one of
the ways in which supervision can be reduced since in repetitive works, the workers’
experience can be tapped.

The Extensive Use of Subcontractors


The fragmented and highly volatile nature of the construction industry is extremely sensitive
to economic changes. To keep low overhead cost MCs subcontract the bulk of the work.
Most however, still try to keep their core pool of quality staff at the headquarters during
economic downturns. One contractor remarked, “all except the preliminary items are done in
house… good planning can ensure control is achieved”.
This unique feature of the industry contributes to increased specialisation on the part
of the SCs since they are most informed of the latest technology and method of construction
in their scope of trade. ISO required the MCs to call up at least three SCs during quotation
for competitive comparison under the Purchasing section. Usually the SCs, who have gained

9
expertise with various projects for the same trade upon analysing the drawings, are able to
propose to the MCs alternative or novel construction techniques, enabling the MCs to obtain
more attractive pricing even with improved quality.
To ensure they can secure future jobs with the MCs, the SCs are willing to share this
information with them. In this way, the MCs feel they are released of the responsibility to
innovate since they can be kept abreast of the latest materials and technology without having
to invest in any research and development (R&D). One contractor even relates and elaborates
this point, saying,
“ Especially for Design and Build (D&B) projects, months prior to the
commencement of the project, we even include the precasters and the specialist
subcontractors to sit in the discussions...foreseeable problems are brought up and
thrashed out even before the actual construction!.…in one of the projects we have
handled, there is this special cantilever slab that has to have a higher working load
since it has to carry more weight and this requires a mould that is just going to be
used once! Moulds are expensive you know! So the precaster actually suggest that we
modify the design a little such that the mould s that are used for the other floors that
have even higher working load can be used for this additional slab...that was certainly
cost saving for us… ”

Lack Of Long Term Commitment To Change And Innovation


The industry does not have stringent requirements, thus even small, family-based
construction companies are allowed to enter the industry. Such firms are seen to be
shortsighted, emphasising primarily on profitability. Therefore, the culture of R&D for new
methods of construction is lacking, as it demands a long-term investment.
This short termism seems to be evident in the research sample. One of the contractors
explained “even with the grants from the government to innovate, this is still insufficient and
we still need to fork out a large sum of money … if the present system still brings in the
desired profits, why should we invest the money elsewhere?”
Thus all but one of the companies does not put aside monies to invest in this area of
development. LC’s principle of Kaizen and continuous improvement through R&D on top of
making the value flow are not facilitated here.
All the companies allow their employees to attend training courses/seminars that are
organised and is mandatory by the Building and Construction Authority (BCA) and
Construction Industry Training Institute (CITI). Only one company however, takes the
initiative to organise trips to the main foreign contractors that are based in Singapore, to learn
more about the latter’s specialised construction techniques.
In accordance with ISO clause 4.19, which specifies training, the firms do conduct on
the job training on site and mainly focus on the foreign workers. The senior management
staffs continue to upgrade themselves with the latest construction techniques through reading
of international construction journals and overseas visits. They will then employ or
disseminate the relevant useful information to the lower management.
It is found that the nature of the companies shapes the organisational structure and
this affects the dissemination of information. Family-based companies are usually not as
transparent in comparison with the corporations. ISO aids in setting up the basic feedback

10
system under clause 4.9 of Process Control (section 4.2.3). A contractor said, “We have
group discussion and weekly meeting with the foreman and supervisors…The Project
Manager is the main co-ordinator. He will act as the judge and choose to adopt the better
system and changes.”

Price-Oriented Tendering System


The current open tendering system where the lowest tenderer wins the project does not
promote the use of new construction techniques due to the costs they entail. One contractor
expressed dissatisfaction, saying, “I was ready to make a loss of $500,000 on paper for my
last project just to ensure continuity of works”.
Clients play a crucial role for MCs to initialise new systems or concepts to the
projects since most of the MCs are unwilling to bear the additional costs. If the contract
clearly states that LC project delivery system is be practised, then MCs are obliged to
experiment with it. One contractor said, “Based on past experience, our company believes in
the efficiency of precast works to speed up the construction process although it costs more
than traditional wet trades. And when we proposed to use that method, they agreed – on the
condition that we bear the additional costs! How many do you expect to be like us? ”

Long-Term Relationship With Suppliers Exists For Most Companies


The definition of suppliers here includes the SCs over and above the material providers. Four
of the companies practise long-term supplier relationship, which is a vital instrument and
principle in LC. They agree that with this alliance, better work quality can be achieved. The
two firms that disagree states the setting in of complacency to be the main fear since they are
assured of the jobs based on this relationship. Quality declines as time passes. One contractor
adds, “There is no such thing as X provides the best price and service all the time … it is just
a matter time when human tendency to slack on the job will surface ... especially so when
they think they can always get the jobs from you ... you cannot depend on just one guy ...
this makes business sense . . . ”
Although this worry seems to be nipped in the ISO framework under clause 4.6 and
suppliers are taken off the company’s approved list of SCs when their services or quality fall
behind the competitors, it has not proved to pacify and reassure the two firms. Append on the
fact that the industry is so price-oriented, these two firms have not experienced what the four
companies have, that the suppliers are usually willing to trade off higher pricing and match
the competitors’ quotations to secure the projects based on these alliances.
To reinforce the importance of communication and maintaining cordial relationships
even with the suppliers, one firm even goes the extra mile of creating opportunities for the
employee to meet up with the alliances. This firm’s representative explains, “ Our company
holds an annual open house and the suppliers and subcontractors that are in the approved list
even new ones that have just joined us in projects are invited.. . receive feedback from them
as well as to update them with the latest corporate development . . . this is also a good
opportunity for both parties to meet up and get to know one another better”.

11
Efficient Use of ISO
All the firms benefit from the certification. The first contractor remarks that “ISO ensures
client’s satisfaction ... market practice to set up mock up samples and only upon client’s
approval then we proceed with the assembly ... corrective actions ensure that the client’s
satisfaction is fulfilled even during Defect Liability Period”. One contractor points out,
“ISO aids my company in monitoring the subcontractors’ work progress . . . and check
whether they maintain their standards since there is assessment done yearly.” A contractor
expounds on how his company’s mindset changes because of the implementation of ISO,
saying, “This system forces the old timers in my company to make changes who are
sometimes quite a challenge as they tend to go about doing their work based on their
experiences which are not properly documented . . . With ISO, quality work is achieved as
tasks are done with consistency, in accordance with the quality manual.”

CONCLUSION OF THE STUDY


All firms have performed parts of the instruments and employ some of the LC’s principles
into their activities but with variations. Some of the principles and instruments are applied
more frequently than others. The ISO framework has indeed prove to be of an “unspoken”
driving force to motivate the MCs to improve. This is clearly seen from the responses above.
Though they might not have seen the benefits they can reap with the certification, they are
gradually harvesting the fruitage now. The MCs generally are open to LC’s principles and
instruments being incorporated but express reservations to the whole implementation of LC
into the local context due to the unique features of our industry. They do acknowledge
however that with full implementation, it expedites the rate in the realisation of the vision of
being a “World Class Builder in the Knowledge Age”.

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