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10 – 13 March 2019 Jeddah Centre for Forums & Events

Wael Darkazanli PMO Manager | MSc, PMP DK Designers Engineering Consultants

How to Save Time & Cost During Construction - Movement Waste Perspective


Table of Content

Title

Pg

Introduction ………………………………………………………………………………………………… CASE STUDY (1): Shortage in Office Support ……………………………………………. CASE STUDY (2): Shortage in Service Facilities ………………………………………….

3 4 8

Project Case Study ………………………………………………………………………………………. Examples – Real Cases of Unforeseen Delays ………………………………………….. Lean Concept – MUDA Model ……………………………………………………………….....

12 14 15

Tip …………………………………………………………………………………………………………….....

16


Introduction

Most of companies reduce their direct cost of services and logistic support towards their staff either in offices or construction sites, keeping each one using his personal support to support his daily needs during the work, which are considered as extra costs and must be reduced to the minimum! But, no one has calculated what the cost shall be in case of this shortage of support, where a lot of indirect expenses are caused due to this negligence by management and direct supervisors.

Pg.3/17


CASE STUDY (1): Shortage in Office Support

A Technical Office with the following staff: • 3 Managers/Sr. Engineers • 10 Engineers • 20 Draftsmen No. of available Tea Boys: 1

Pg.4/17


CASE STUDY (1): Shortage in Office Support Average Monthly Salary for Each as it follows: Staff Average Monthly Salary SAR Manager 18,000 Engineer 10,000 Draftsman 4,000

The Salary Rate of each per 1 Min: Staff Monthly Rate SAR No. of Days No. of Hours Rate/Min SAR Manager 18,000 30 8 1.25 Engineer 10,000 30 8 0.69 Draftsman 4,000 30 8 0.28

Pg.5/17


CASE STUDY (1): Shortage in Office Support The Total Salary of each per 1 Min: Staff No. Salary/Min SAR Total Salary/Min SAR Manager 3 1.25 3.75 Engineer 10 0.69 6.94 Draftsman 20 0.28 5.56 Total 16.25

Cost caused during coffee/tea preparation: Salary/Min SAR 16.25 16.25 16.25

No. Time Min Cost/Day SAR No. Days Cost/Month SAR 1 10 162.50 26 4,225.00 2 10 325.00 26 8,450.00 3 10 487.50 26 12,675.00

Pg.6/17


CASE STUDY (1): Shortage in Office Support Average Loss during coffee/tea preparation: Ave. Cost SAR Monthly Loss Annual Loss

Total Cost SAR 8,450 101,400

Average Cost Saving when extra tea boys are available: Ave. Cost/Month SAR No. of Office Boys Salary of Office Boy Total Salary SAR 8,450 2 1,500 3,000 Monthly Saving SAR 5,450 Annual Saving SAR 65,400 Pg.7/17


CASE STUDY (2): Shortage in Service Facilities

A Construction Site with the following Staff: • 4 Engineers • 4 Foremen • 100 Labors Approximate construction area is 7,000 m2 Available service area is 1

Pg.8/17


CASE STUDY (2): Shortage in Service Facilities Average Monthly Salary for Each as it follows: Staff Average Monthly Salary SAR Engineer 10,000 Foreman 5,000 Labor 1,500

The Salary Rate of each per 1 Min: Staff Monthly Rate SAR No. of Days No. of Hours Rate/Min SAR Engineer 10,000 30 8 0.69 Foreman 5,000 30 8 0.35 Labor 1,500 30 8 0.10 Pg.9/17


CASE STUDY (2): Shortage in Service Facilities The Total Salary of each per 1 Min: Staff Engineer Foreman Labor Total

No. Salary/Min SAR Total Salary/Min SAR 4 0.69 2.78 4 0.35 1.39 100 0.10 10.42 14.58

Cost caused during moving throughout the site: Salary/Min SAR 14.58 14.58 14.58

No. Time Min Cost/Day SAR No. Days Cost/Month SAR 1 10 145.83 26 3,791.67 2 10 291.67 26 7,583.33 3 10 437.50 26 11,375.00

Pg.10/17


CASE STUDY (2): Shortage in Service Facilities Cost caused during moving throughout the site:

Average Loss during moving throughout the site: Ave. Cost SAR Total Cost SAR Monthly Loss 7,583 Annual Loss 91,000 Project Loss (24 M) 182,000

Ave. Cost/Month Duration (Months) Cost/Year 7,583.33 12 91,000.00 7,583.33 24 182,000.00 7,583.33 36 273,000.00

Average Cost Saving when additional service areas provided:

Ave. No. of Add. Total Cost of Cost of Cost/Year Service Service Area Service Area SAR Areas SAR 91,000 3 20,000 60,000 Annual Saving SAR 31,000 Project Saving (2 Years) 62,000 Pg.11/17


Project Case Study

The same of previous Case Studies 1 &2 where the construction site is the same, and the technical office is working for 4 projects at the same time, therefore it contributes approx. 25% if its capacity towards this project.

Pg.12/17


PROJECT CASE STUDY

Average Loss & Profit due to both previous cases as discussed earlier:

Case

Effect

Annual Loss (SAR)

1 2

Technical Office (25%) Site Staff

25,350 91,000

Project Loss (24M) Annual Profit (SAR) (SAR) 50,700.00 182,000.00 232,700.00

16,350 31,000

Project Profit (24M) (SAR) 32,700.00 62,000.00 94,700.00

Pg.13/17


Examples – Real Cases of Unforeseen Delays

Not providing efficient computers for technical engineers Shortage in document controllers which cause a personal follow-up by technical engineers

One center/location for distributing PPE equipment to labors prior to work start Hiring unqualified staff due to the policy of “hire the lowest salary” Pg.14/17


Lean Concept – MUDA Model

Hidden reasons of how we lose time, have extra cost, and have delays in our production and projects.

OverProduction Transportation

Useless Processes

Useless Motion

Waiting Inventory, OverStocking

Defects, Rework & Scrap Pg.15/17


Tip

The actual cost of applying any change or support is not the direct cost of this support, but the cost of not applying it. Be with your STAFF! Pg.16/17


Thank you for attending!

Olaya, Al-Mousa Center, Tower#3, 3rd Floor, Office#335 P.O.B: 7720 - Riyadh 12212 - Riyadh, Saudi Arabia T: (966) 11 279 0078 | F: (966) 11 279 0078 | M: (966) 59 727 0678 E: wael@dkdesigners-group.com | W: http://www.dkdesigners-group.com

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Speaking at The Big 5 Saudi 2019  

How to Save Time & Cost During Construction - Movement Waste Perspective

Speaking at The Big 5 Saudi 2019  

How to Save Time & Cost During Construction - Movement Waste Perspective

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