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Measuring performance within the supply chain of a large scale project

Measuring performance within the supply chain of a large scale project Purpose – The purpose of this paper is to explore the performance measurement methodology used by a real case company, namely Vanderlande Industries Ltd, for cost and progress capture for in‐house production, resale material and third party supplied material, in an effort to measure performance of the supply chain of a large scale project – the €6bn London Heathrow Airport Terminal 5 construction project. Design/methodology/approach – The case study approach was adopted, which includes ethnography. This research is not about testing a theory; it is about gaining insight to the actual functioning and supply chain performance measuring of a large‐scale project. In that sense, the experiences reported could be shared with those dealing with performance measurement of large‐scale projects. Findings – Eight key areas of concerns are found relating to supply chain performance measurement of a large‐scale project: performance measurement requirements, with forecasting and progress reporting not owned by suppliers; lack of detailed planning causing regular changes to baseline; detailed work breakdown structure causing unnecessary complications to performance analysis; organisational structure; performance measurement tool; data capture; timing of progress and cost capture affecting the analysing process; and scope change and traceability. Originality/value – The paper is targeted at senior and middle managers involved in large cost reimbursable projects. Managers should manage more carefully the eight key areas of concerns identified. Recommended solutions targeting each area of concerns from the lessons learnt in the €6bn London Heathrow Airport Terminal 5 construction project give a basis for improved project management and supply chain performance measurement for large‐scale projects. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Supply Chain Management: An International Journal Emerald Publishing

Measuring performance within the supply chain of a large scale project

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Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
1359-8546
DOI
10.1108/13598540710724338
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to explore the performance measurement methodology used by a real case company, namely Vanderlande Industries Ltd, for cost and progress capture for in‐house production, resale material and third party supplied material, in an effort to measure performance of the supply chain of a large scale project – the €6bn London Heathrow Airport Terminal 5 construction project. Design/methodology/approach – The case study approach was adopted, which includes ethnography. This research is not about testing a theory; it is about gaining insight to the actual functioning and supply chain performance measuring of a large‐scale project. In that sense, the experiences reported could be shared with those dealing with performance measurement of large‐scale projects. Findings – Eight key areas of concerns are found relating to supply chain performance measurement of a large‐scale project: performance measurement requirements, with forecasting and progress reporting not owned by suppliers; lack of detailed planning causing regular changes to baseline; detailed work breakdown structure causing unnecessary complications to performance analysis; organisational structure; performance measurement tool; data capture; timing of progress and cost capture affecting the analysing process; and scope change and traceability. Originality/value – The paper is targeted at senior and middle managers involved in large cost reimbursable projects. Managers should manage more carefully the eight key areas of concerns identified. Recommended solutions targeting each area of concerns from the lessons learnt in the €6bn London Heathrow Airport Terminal 5 construction project give a basis for improved project management and supply chain performance measurement for large‐scale projects.

Journal

Supply Chain Management: An International JournalEmerald Publishing

Published: Jan 30, 2007

Keywords: Supply chain management; Performance measures; Project management

References