Project success 101- IPCS – The supply chain

In this blog, I’ll break down a crucial aspect of the integrated production control system: managing the supply chain and ensuring resources get to the project site effectively. When I mention “integrated production control system,” think of it as a comprehensive method that involves the whole team, focuses on creating production plans (not just schedules), and operates as a cohesive system. In this blog, you’ll discover the difference between procurement and supply chain management, and how to ensure materials arrive at just the right time to maintain project flow. Let’s dive in.

What Really Matters in a Construction Project

First things first: If you can get the materials to the site, you can build—it’s as simple as that. Even if you’re working with a flawed schedule, like a garbage CPM (Critical Path Method), you’ll typically be able to push through if resources are in place.

 Sure, there may be inefficiencies and waste, but you’ll still move forward. However, when materials aren’t available, you’re looking at a major roadblock. To avoid this, aligning your supply chain with a Takt production system or flow schedules on a rhythm is key. These schedules become your production plans.

Key Elements of the Integrated Production Control System

Procurement is simply the act of securing labor, services, and resources for your project. But we don’t stop at procurement; we must also manage the supply chain. I always anchor back to the importance of foremen and workers on-site. 

The integrated production control system is designed to ensure that foremen and workers have the materials, plans, and support they need to execute their tasks efficiently. When we manage the supply chain properly, we can keep crews on rhythm, avoid delays, and maintain consistent progress.

Importance of Managing the Supply Chain Properly

Picture this: the supply chain stretches all the way back to the design phase, through fabrication, delivery, and ultimately the installation of materials on-site. Every step of this chain must be carefully managed. 

Instead of leaving a trade partner to figure things out on their own, the general contractor must be actively involved in every stage, from scope preparation to supply chain management. This ongoing involvement is the key to ensuring that materials are delivered to the right place at the right time.

How to Visualize the Overall System

Visualizing the overall system helps ensure everything runs smoothly. Start by designing the project in a way that accommodates its phases and zones. A solid buyout process is essential; it ensures the right contractor is selected to carry out the work. The contractor isn’t chosen based on the lowest bid; they’re selected because they’re the right fit for the job and can work within the production system.

Once the contractor is on board, you must ensure all compliance items, including insurance, are in place. The procurement efforts begin long before materials arrive at the site, so everything must be optimized and tracked throughout the process.

How to Manage Deliveries to the Project Site

When the materials are ready for delivery, it’s crucial to have a detailed logistics plan. You need to know exactly where deliveries will arrive on-site, and make sure operators (crane, forklift, etc.) know where materials should go—so they end up in the right place the first time. This reduces unnecessary movement and inefficiencies on the job site.

How to Bring Out Materials Just in Time

A key concept in supply chain management is “just in time” delivery. This means you should only bring materials to the site when they are needed, not earlier. You can either deliver materials directly to the work area from the vendor or send them to a staging yard first. The key is to have the right-sized inventory buffers to ensure that you have enough materials on hand without overcrowding the site.

Managing Delays and Supply Chain Buffers

Delays happen, but you can mitigate them by building buffers into your production plan. These buffers help account for risks, such as late deliveries. By integrating buffers both in the production plan and the supply chain, you ensure there’s room to absorb delays without halting work on-site.

Key to Successful Supply Chain Management

In summary, successful supply chain management hinges on having a strong buyout system, a well-managed procurement system, and effective on-site logistics and delivery processes. Add prefabrication into the mix, and you’ve got a winning formula. With all of these elements in place, your foremen and workers will have the resources they need to stay on track and get the job done.