Civil Engineering Reference
In-Depth Information
process is part of the PMO's responsibilities and ensures consistency in
all forms of reporting and communication.
Performance improvement through Purchase and
Supplier Engineering
In many sectors of the economy, including construction, innovation
takes place inside individual fi rms. These innovations are then seen and
taken up by competitors in an adapted form. In construction, where the
production processes are fragmented to a great extent, large programmes
provide a particular opportunity for the industry to innovate. Major
complex programmes, such as the BAA London Heathrow Terminal 5,
London 2012 Games and the extremely complex Crossrail programme,
can act as catalysts for change in construction, affecting both markets
and suppliers.
One of the key outcomes of effective performance management is the
early identifi cation of trends and areas for improvement. It may be
achieved with the help of clear, concise and relevant management infor-
mation, which relates directly to the client's objectives for a programme
or for their business. This applies particularly to the early identifi cation
of areas of the supply chain that need to be improved, and equally to
areas of the supply chain that may be performing above expectation.
By measuring performance using simple, industry-accepted standards
and indicators, such as the existing standard KPIs, the client can easily
compare and benchmark performance against industry best practice.
This in turn allows the implementation and dissemination of best prac-
tice throughout the supply chain.
To improve effi ciency in organisations requires frequent measure-
ment of various aspects of the production and organisational processes.
As improvement implies change, there is a need to measure the current
state of performance and compare it at some point in the future. A key
part of the management of a culture of continuous improvement are the
measures that show how the organisation and the process are progress-
ing towards key productivity or quality gains.
However, measuring change alone is not suffi cient to improve per-
formance. Weighing a pig will not make it fatter! As the concept of
Purchase and Supplier Engineering implies, a number of other factors
need to be taken into account in the pursuit of innovation in construc-
tion. When agreeing the performance measures, the PMO needs to
