This is a map showing where various businesses are located throughout Wolverhampton. This map only shows a few of the businesses in Wolverhampton and there are many more.
Here are a few businesses that I have picked out to give an idea on the types of competition S Parton construction has
Hindley Contractors
“Hindley Contractors Ltd is a building company based in Essington in the West Midlands. We can offer you all the necessary building services in order to make your house a home. Since our business began, we have developed a reputation for quality and value. Customer service and satisfaction are our top priorities, and we would be delighted to talk to you about your building plans...” (Source: sitebuilder.yell.com). It is 5.87 miles away from the city centre
Dino’s building Limited
“4 partners providing the expertise needed in the diverse industry of building. We are specialists in extension and refurbishments and offer the complete service from concept design, to the interior and exterior fittings and fixtures. Our own craftsmen ensure quality workmanship is undertaken providing a high standard of finish on all projects.” (Source: Sitebuilder.yell.com) It is 4.4km away from the city centre
James Wilkes Ltd
‘At the turn of the century, this evolution was stamped with a new company name, James Wilkes Limited Building Contractors, which completed the modernisation and re-established the company for the new century. James Wilkes Limited is managed by an enthusiastic and well qualified team who have a common goal - to offer the best in all aspects of building construction and the enduring values upon which the company was originally founded.’ (Source: www.jameswilkes.co.uk)
It is 2 miles away from the city centre.
Services
These are the different services that the three businesses offer.
Legal Constraints
There are many legal constraints involved in the construction industry and S Parton has to be aware of them. Generally, S Parton does one off jobs which could involve different things such as extensions or heating etc. The job that S Parton does has to be of an acceptable standard so that ‘buildings are properly designed and constructed so as to ensure the health, safety, welfare and convenience of people using them.’ (Source: www.wolverhampton.gov.uk). As a result building regulations have been introduced to ensure these standards are met.
Building Regulations
- Structural stability - will the building safely carry anticipated loadings or will it fall down?
- Fire precautions - both controlling the materials used according to the degree of risk and making sure that buildings could be evacuated without loss of life in the event of a fire.
- The prevention of dampness and condensation in buildings.
- Sound resistance of walls and floors between dwellings.
- Ventilation of habitable rooms and unheated voids.
- Hygiene, sanitary appliances and drainage.
- Heating appliances including the safe discharge of flue gasses.
- Stairways, ramps and vehicle barriers.
- Conservation of fuel and power. Is the building properly insulated etc.
- Access to buildings and facilities for disabled people.
- The safe positioning of glazing in windows and doors etc.
(Source: www.wolverhampton.gov.uk).
When on a job S Parton is aware that if he is employing a Sub contractor (See appendix 1), then the sub contractor is usually responsible for the building to meet the regulations. However, the owner of the building (who will be the customer) will be ‘served with an enforcement notice if the work does not comply with the regulations.’ (Source: www.direct.gov.uk).
To be able to achieve compliance with the regulations S Parton will have to be obliged to use either Wolverhampton City Council’s building control (See appendix 11) where he will be charged for the service.
Health and safety
Health and safety (See Appendix 12 for Health and safety Laws) is an important factor which affects S Parton’s business. As an employer he is responsible for making sure health and safety is insured on all of his construction sites. ‘They are also responsible for any visitors to their premises such as customers, suppliers and the general public.’ (Source: Direct.gov.uk). He also has a legal obligation to report any accidents, incidents and to enforce sick pay if a worker has to go off work due to an accident.
S Parton also has to make sure that when hiring someone to carry out work on gas appliances and fittings is only done by a registered Corgi installer. This is also the same with an electrician who needs the right certification such as a BRE Certification to be able to carry out electrical work.
Planning Permission
Before S Parton beings an extension to a building he needs to be able to get planning permission from Wolverhampton City Council. (See appendix 13) If he builds something without planning permission he will have to go back and out things right which can be time consuming and costly. To make a Planning application Mr Parton would have to fill in a planning permission form. The form must be accompanied by a plan of the site and a copy of the drawings showing the work he proposes to carry out. From there the council will make a decision on whether to accept the application within 8 weeks. If the council decides to reject the application Mr Parton has the chance to appeal however if the decision goes against him and he still refuses to comply then he may be prosecuted. Neighbours and design are also factors.
Neighbours may be unhappy with work that may be being carried out on a house because it may affect them. It is important that neighbours are told before a planning permission is made. Before work is done the design of the building has to be of a high standard since no one wants to look at a badly made building. A good design may also lead to the valuation of the building increasing.
Minimum Wage
The minimum wage is an important aspect of the workplace and has a factor on the lowest wage the S Parton can pay to his employees. It applies to nearly all the workers and sets hourly rates which pay must not fall.
National minimum wage rates per hour: April 1999-October 2006
As you can see from the table the minimum wage varies from different ages. In 2006 the minimum wage increases the older the employee is. This is why S Parton may choose to employ an inexperienced worker purely because he/she will be cheaper to employ.
However, since S Parton prides himself on giving the best value for money rather than the cheapest he would rather have an experienced, skilled worker who could to a high standard job. This means the wage bill may be higher and he would have to pass the costs down to the customer.
Working hours
This graph shows the average working hours in the United Kingdom. Law states that workers should not have to work more than 48 hours a week unless they have agreed to with their employers. When working overtime the rate of pay must not fall below the National minimum wage. S Parton can has to also be aware that if a job is not complete in time he cannot force his workers to do overtime if they do not want to. If S Parton needs a job to be complete on a certain day and work has to be done on a bank holiday then he can decide how much to pay on that day. Again though this cannot be below the Minimum wage.
Dangerous Materials
Handling dangerous materials is a hazardous factor which requires laws and regulations. The Control of Substances Hazardous to Health (COSHH) is a set of regulations regarding the handling of dangerous chemicals. When dealing with dangerous tools there are set guidelines in how workers should use them safely. Should Mr Parton use flammable materials then COSHH has guidelines on what should be done when handling them.
Research and Development
S Parton Construction Ltd is a small local business which does not generate a large profit therefore cannot afford to invest large amounts of money in research and development. In my interview with Mr Parton he stated that he had various sources to keep up with new materials in the market such as the internet.
He did not tell me however that he looked at magazines to find information on new materials coming on the market. This could be a useful source of information since the magazines write reviews and give price comparisons. (See appendix 7)
He also told me that new materials and parts weren’t being created from scratch but rather improved with add-ons. When he researches new materials on the market he mainly looks for materials which do the same job but are cheaper. This is a good method since if Mr Parton can obtain products which do the same job which are cheaper then he can pass these savings down to the customer which would make his business more competitive. He also said that if he needed a specialist item then he would need to have it imported from abroad which would be expensive.
Research and Development is a costly process but if Mr Parton were to spend time in research and development then it would give him an advantage over his competitors because they will be his products. Copyright would also be a factor since he would not want his competitors copying his product and then selling them as their own. There are ways that would protect Mr Parton from doing this including:
- Mr Parton could patent his products in a bid to gain the sole right of the benefits that the product brings. If another business decides to copy his product then Mr Parton could sue them.
- If Mr Parton goes to the extent that he creates signs or symbols for his Products then trademarks would protect him from other businesses copying him.
Overall research and development is not an important factor in Mr Parton’s business. The main concern for him is being able to buy the best products which do the best job at an affordable price. S Parton Construction Ltd is a local business which doesn’t produce raw materials but buys them to make a product. Therefore researching and developing products is not an aspect which will determine whether the business is a success or not.
Production
The products/Services offered
S Parton does various jobs which broadens his marketability and therefore can gain more jobs. The products and services that S Parton offers include:
- School extensions,
- Domestic extensions
- Grant aided work for disabled people
He also does work on listed buildings such as:
- Buildings
- Office work
- Insurance works
- Fire damage works
(See appendix 1)
Scale of Production
Production is an important aspect of Mr Parton’s business. Since he is in the construction industry he is mainly producing products from scratch. Each job he normally does is jobbing production because each type of work that he does for a customer will be different. The benefits of this form of production are:
- Each job is different so they will be to the customer’s exact needs. As a result the customer is more likely to be satisfied with the end product. For example if Mr Parton is doing a job on an extension he will need to find the exact measurements of the extension with the help of an architect. This means once he has completed the job the product will not be too small or too large because it has been built to fit the requirements.
- During the production of the job the customer can change what he/she needs. This means Mr Parton will have to be flexible unless the customer has signed a contract meaning he/she cannot change their minds about the product after production has started.
The are also some potential drawbacks to job production
-
It can be resource intensive meaning a large number of parts and equipment are needed to be able to do the job. This can be costly therefore S Parton hires equipment to save on costly bills such as insurance (see appendix 1).
-
Each job requires a large amount of work and effort to be input. Each job requires a large amount of planning including a drawing from the architect (see appendix 5).
Method of Production
There is a certain method of production which Mr Parton goes through when he does a job. The route of jobs is:
- The initial phone call
- A time is arranged for him to come and view the site.
-
If he is happy with the work he then gives a quotation. (See appendix 6)
- If the customer accepts the quote he starts work on the job
- Once the job has been completed he takes the payment from the customer.
(See appendix 1 for more information)
Sub contractors are part of S Parton’s business. They have been working with him for over 25 years and they are around for specialised jobs such as gas fitting and electrical work. He expects the work done by the Subcontractors to be done properly and pays them as soon as he can to gain their trust. This is because if he needs them at another job he will have more chance of getting them because they re confident that he will pay them. He also makes sure that the people he employs to do gas and electrical work are certified because by law these are recognised as dangerous jobs and must only be done by qualified people. (See appendix 1)
Materials are a key part of the job process. In my interview with S Parton he stated that he never lets his Sub Contractors have no work. In the unthinkable event when there may not be any materials for the Sub Contractors to work with, Mr Parton orders them and has them delivered as soon as possible as to not lose a large amount of money and time. If at the end of a job he has materials left over then he will send them back to the supplier. Materials are ordered within days of them being needed and when they are arrive, they are put into a safe, dry environment.
The time when work starts is also a factor. If work is to be done during winter Mr Parton makes sure that it is feasible to since materials and equipment may be damaged due to the bad weather. In my interview with Mr Parton he stated that he lost one day in the winter due to bad weather whereas 20-25 years ago he would have lost a lot more. This shows how far technology has developed for the construction industry because now they have equipment and materials which are capable of doing work in the bad weather conditions.
At the moment he does all his finances via computer with the help of his Wife. He also keeps reminders in his phone to organise his day since he is normally working on 8 jobs at a time. He tries to visit these as at least once a day. Keeping reminders on his phone to help him organise his day is a dangerous method because he does not have back up plan if he loses his phone. I think using some sort of project management software would be the ideal solution to this.
Economies of scale
S Parton Construction Ltd is not a large company. It is a small business which buys materials in small amounts. This is why they do not benefit from economies of scale. In my interview with Mr Parton he stated that he may need to pay more money for a small amount of materials however, he tries to a good relationship with his suppliers so that if a specialist item is required he does not have to pay large amounts of money.
Method of Production
The products/Services offered
S Parton does various jobs which broadens his marketability and therefore can gain more jobs. The products and services that S Parton offers include:
- School extensions,
- Domestic extensions
-
Grant aided work for disabled people (see appendix 10)
- Alterations
- Refurbishments
- Bathrooms
- Kitchens
- Listed Buildings
- Insurance works
- Fire damage works
(See appendix 1)
Scale of Production
Production is an important aspect of Mr Parton’s business. Since he is in the construction industry he is mainly producing products from scratch. Each job he normally does is jobbing production because each type of work that he does for a customer will be different. The benefits of this form of production are:
- Each job is different so they will be to the customer’s exact needs. As a result the customer is more likely to be satisfied with the end product. For example if Mr Parton is doing a job on an extension he will need to find the exact measurements of the extension with the help of an architect. This means once he has completed the job the product will not be too small or too large because it has been built to fit the requirements.
- During the production of the job the customer can change what he/she needs. This means Mr Parton will have to be flexible unless the customer has signed a contract meaning he/she cannot change their minds about the product after production has started.
The are also some potential drawbacks to job production
-
It can be resource intensive meaning a large number of parts and equipment are needed to be able to do the job. This can be costly therefore S Parton hires equipment to save on costly bills such as insurance (see appendix 1).
-
Each job requires a large amount of work and effort to be input. Each job requires a large amount of planning including a drawing from the architect (see appendix 5).
Information gained from Mr Parton at the interview – A typical job
There is a certain method of production which Mr Parton goes through when he does a job. The route of jobs is:
- The initial phone call
- A time is arranged for him to come and view the site.
-
If he is happy with the work he then gives a quotation. (See appendix 6)
- If the customer accepts the quote he starts work on the job
- Once the job has been completed he takes the payment from the customer.
(See appendix 1 for more information)
Sub contractors are part of S Parton’s business. They have been working with him for over 25 years and they are around for specialised jobs such as gas fitting and electrical work. He expects the work done by the Subcontractors to be done properly and pays them as soon as he can to gain their trust. This is because if he needs them at another job he will have more chance of getting them because they re confident that he will pay them. He also makes sure that the people he employs to do gas and electrical work are certified because by law these are recognised as dangerous jobs and must only be done by qualified people. (See appendix 1)
Materials are a key part of the job process. In my interview with S Parton he stated that he never lets his Sub Contractors have no work. In the unthinkable event when there may not be any materials for the Sub Contractors to work with, Mr Parton orders them and has them delivered as soon as possible as to not lose a large amount of money and time. If at the end of a job he has materials left over then he will send them back to the supplier. Materials are ordered within days of them being needed and when they are arrive, they are put into a safe, dry environment.
The time when work starts is also a factor. If work is to be done during winter Mr Parton makes sure that it is feasible to since materials and equipment may be damaged due to the bad weather. In my interview with Mr Parton he stated that he lost one day in the winter due to bad weather whereas 20-25 years ago he would have lost a lot more. This shows how far technology has developed for the construction industry because now they have equipment and materials which are capable of doing work in the bad weather conditions.
How Mr Parton plans his jobs
At the moment he does all his finances via computer with the help of his Wife. He also keeps reminders in his phone to organise his day since he is normally working on 8 jobs at a time. He tries to visit these as at least once a day. Keeping reminders on his phone to help him organise his day is a dangerous method because he does not have back up plan if he loses his phone. He also tries to plan his jobs by remembering key events such as meetings to be held with customers or dates of when raw materials are being delivered. I think using some sort of project management software would be the ideal solution to this.
Managing production
Quality
A key part of S Parton’s business is the way he manages production. This includes Quality Control. Since S Parton is in the construction industry there are many dangerous jobs which may have to be monitored for quality such as structural work. There is a special organisation within Wolverhampton which monitors the quality of the work done by S Parton called Building Control (See Appendix 11). This is managed by Wolverhampton City council and is used to make sure building regulations have been met along with Health and Safety.
When Mr Parton starts a new job he calls Building control to let them know about the site. Overall they visit the site 8 times during the construction of the job.
(See appendix 1). It is also financially costly for Mr Parton to use building control. To do an extension he will have to pay between £70 - £400 for the service.
At the end of a job a certificate would be handed by building control to the customer and S Parton stating that the job meets all the building regulations and passes the Health and Safety laws.
There are two teams which make up building control. These are known as the north and South teams.
This form of Quality Control is reliable since inspectors are coming to visit the site regularly. This means they can spot problems with the quality of the work before the end of the project. As a result if the finished job (such as an extension) gets handed over to the customer it has been thoroughly checked and there is minimal risk for problems developing in the future. It is much better to find defects in the Quality as the site is being developed so something can be done about it easily rather than finding them at the end where it will be much more difficult to solve.
Employees are also encouraged to make sure that they check the quality of the work. To do this they make check each others and try to find any defects which may be around. Employees checking work is a good way for them to try and bond together and work as a team. They may be able to use combine their skills to try and help each other out to improve the quality of a product.
Stock Control
Any business needs to be able to manage its stocks effectively. This is the same with S Parton. He needs to make sure that he orders the right amount of materials at the right time. Having too many materials is costly since after a job has been completed and there are stocks left over then he may be stuck with them if he cannot send them back to his supplier. Having too few materials means is also costly and can be time consuming. If his sub contractors are left with no materials then they cannot do any work meaning that they are being paid to do nothing. This factor is vital to avoid and rarely does Mr Parton leave his sub contractors with no materials to work with. To help him decide how many materials he needs to be able to complete a job he uses an architects drawing. On this drawing the completed site is drawn to scale with the relevant information such as how many square meters of slabs is required for a patio.
In my interview with Mr Parton he talked about equipment. He told me that while he used to buy equipment years ago he has decided to hire them instead. The reasons for this include storage and insurance as well as the relevant certificates to be able to use them.
Storage is a factor that Mr Parton considers when ordering stock. There are many factors he thinks about when ordering stock and what to do with them if at the end there are some left over with no way of him being able to send them back. These include:
- Materials need to be looked after so that they do not get damaged or wear out over a long period. An example of this is concrete. Mr Parton needs to be able to make sure that the concrete is kept indoors as to avoid damage.
- If Mr Parton spends money on storage so he can keep materials safe then he will be losing out on potential revenue from bank interest rates. If he were to keep the money in a bank with the current interest rate at around 5.75% he could raise more money.
- To be able to store materials Mr Parton may need to employ someone to look after them. Since the materials may be stored away from the construction sites transport will also be a factor because they will have to be delivered.
The demand from customers may also be a factor. There may be a seasonal trend in which there are more customers wanting work to begin at a certain time than at other times. If demand is high then Mr Parton would have to order more materials and if demand is lower then Mr Parton would have to order smaller quantities of materials.
Overall Mr Parton makes sure that there are enough quantities of materials available to do a job although he also ensures that he doesn’t buy more than what is needed because this leads to storage costs.
Just in Time Production (JIT)
Mr Parton’s way of ordering stock can be related to Just in Time production. He orders materials when he needs them to do a job. This is mainly down to the industry that he is in. Working in the Construction industry means that he may not have a huge amount of work on at certain periods so therefore he doesn’t order materials. However a point may come when he gets lots of orders and materials are needed straight away. This is an example of a Pull system of Production. This also eliminates any costs of storage because materials are being used by the workers as soon as they are delivered.
To be able to benefit from Just In time production good relationships with Suppliers may be needed. In my Interview with Mr Parton he stated that he does try to get good relationships with his suppliers so that he may be able to buy materials cheaper and get them delivered quicker. Also, the fact that his brother also owns a building business means Mr Parton may be able to get materials from him cheaper.
There are many potential benefits JIT can offer to Mr Parton. This includes the reduction of operating costs meaning the business is more competitive. The system can also reduce time scales meaning jobs are completed quicker and as a result more jobs can be taken on throughout the year.
There are also some drawbacks to Just in Time production. Firstly, great planning is needed to know when materials will be needed and how much will be needed although as I said earlier this is done through the architects drawing. Another and more critical drawback is the supply of materials. If Mr Parton fails to get his suppliers to deliver materials at a certain time then that is costly because there will be no work to complete.
My proposal
From my assessment of Mr Parton’s business I can make a proposal which would help him improve the competitiveness and efficiency of his business. This can be done through:
Project Management software and Critical Path Analysis
Using critical Path analysis means Mr Parton can plan and organise jobs in a more efficient and easier way. If he uses this method then he can take on more jobs due to the fact that he can plan them 4-5 weeks ahead. As a result the productivity increases as well as the competitiveness of the business. To be able to use critical Path Analysis Mr Parton would need project management software (see appendix 8) meaning he would need a computer. Another benefit of him using critical path analysis is the fact that it saves time which leads to saving costs because if the business does not complete a job on schedule then it will incur costs such as skilled labour for the period of time it takes until it is completed.
It can also help Mr Parton by calculating when specialist workers are needed at a certain time. For example if Mr Parton was constructing an extension he could use critical path analysis to help him decide at what stage he needs to bring in the plasterers or bricklayers and how many of them are required. CPA also helps to manage unforeseen delays. If a delay occurs then Mr Parton would be able to use the network to show the impact on other subsequent delays and therefore reschedule the other activities to make sure the delay is at a minimum. It also allows Mr Parton to tell his customers about the length of the delay and when the new finish time is improving efficiency. (See appendix 9 for an example of critical path analysis)
My proposal - Improving efficiency
Mr Parton can develop a method of improving the efficiency of his business by using Critical Path Analysis. Mr Parton hires equipment rather purchases them due to the cost of keeping it but even still, hiring machinery and equipment can prove expensive if hired for too long. At the moment Mr Parton would just have to make an estimate of how long he needs to hire equipment. He needs to make sure that he does not hire the machinery/equipment for too long. He would want to avoid that completely because hiring machinery and equipment longer than is needed would result in him having to store it somewhere for the rest of the hiring period. Similarly, if Mr Parton does not hire the machinery in time then the job in question cannot progress leaving his workers with nothing to do. Critical Path Analysis would help Mr Parton decide when he needs to hire equipment, how long for and for which job. He could have a situation where there may be two jobs which need the same machinery at the same time. Mr Parton can hire the machinery for a specific length of time and he could therefore share the machinery between the two jobs. This would dramatically improve the efficiency of the business because it could use the same machinery for two jobs and only have to pay for the length that is needed rather than having to order it for one job and then re-ordering it for the other.
CPA can help Mr Parton decide how many workers he needs for his jobs. There is a fine balance which Mr Parton needs to take into consideration when deciding the number of workers he needs. Hiring too many workers would mean he would be paying more labour expenses that is needed however hiring too few workers would mean the job in question will not be finished in time. CPA can Mr Parton to analyse organise his jobs in such a way that he can split them into events. He can plan when these events take place. From this Mr Parton can make an intelligent guess on how many workers he needs for each event. If Mr Parton has more than one job running than any given time then he can use CPA to organise these jobs and split them into different events. From this he can make it so workers working on a particular job one day can transfer half way through and work on a different job on the same day. For example 5 workers go to work on building a kitchen extension from 9:00 to 12:00. Once they have finished the allotted time they can go to another job and start working on a garage extension for the rest of the day. This way Mr Parton is doing two jobs on the same day and making the most of his workers thus improving making them more efficient.
My Proposal - Managing production
A key part of S Parton’s business is the way he manages production. CPA would allow Mr Parton to take on more jobs and expand the business. He can use CPA to manage:
- The start for each job
- The individual events of each job
- The completion date for each job.
If Mr Parton decided that he wanted to take on more jobs and expand the business then he would find it increasingly difficult to juggle the jobs around without some sort of planning tool. CPA would mean Mr Parton can organise his jobs into specific events where he can decide when they occur. It can also show him when he has time where no jobs are taking place so he can go out and look for more work and place this into the extra time. Mr Parton would want to get the most out of his resources and would want to get as many jobs as possible without getting tangled up and CPA is the perfect tool.
Since S Parton is in the construction industry there are many dangerous jobs which may have to be monitored for quality such as structural work. CPA would allow Mr Parton to weave in any quality checks which are needed to be carried out into his plans. It would also allow him to remember when they are and if the software features, can allow him to confirm that the checks have been carried out. At the moment he may forget the checks having been carried out and may call in the monitors for a second time to check something which has already been checked. This would halt the progression of a job which will cost time and money such as labour costs and the hiring of equipment.
Any business needs to be able to manage its stocks effectively. This is the same with S Parton. He needs to make sure that he orders the right amount of materials at the right time. Having too many materials is costly since after a job has been completed and there are stocks left over then he may be stuck with them if he cannot send them back to his supplier. If his sub contractors are left with no materials then they cannot do any work meaning that they are being paid to do nothing. This factor is vital to avoid and rarely does Mr Parton leave his sub contractors with no materials to work with. To help him decide how many materials he needs to be able to complete a job he uses an architects drawing. On this drawing the completed site is drawn to scale with the relevant information such as how many square meters of slabs is required for a patio.
Managing stock control would be much easier with the help of Critical Path Analysis. Using this method would allow his to plan different stages of a project and therefore would allow him to decide when and how much materials he needs at certain dates.
With the help of CPA, Mr Parton’s way of ordering stock can be related to Just in Time production. He would be able to order materials when he needs them to do a job. Ordering materials would be made easier since the software tool would tell Mr Parton when and where stocks are needed. This is an example of a Pull system of Production. This also eliminates any costs of storage because materials are being used by the workers as soon as they are delivered The number of jobs Mr Parton does at one time is not fixed, there could be a period where he has 1 job and another where he as so many jobs he needs to be able to employ new workers when he gets lots of orders. CPA would allow Mr Parton to take on more jobs and can plan them stage by stage. Once the system is running Mr Parton could employ someone to plan the jobs for him while he goes out and tries to get the jobs. Using Just In time with critical path analysis means Mr Parton would be more time and cost efficient when he is doing a job.
Just in time is probably more labour and capital intensive for Mr Parton since most capital will be going towards raw materials for every new job. Time management is also vital and continuous improvement focuses on substantially improving all aspects of Mr Parton’s business which is also known as the Japanese method known as Kaizen.
My Proposal – Planning Production
My Proposal is aimed at improving the production efficiency of S Parton Construction Ltd. Since their type of production is job production it can be difficult for Mr Parton to organise everything especially when relying on remembering the information and using his mobile phone as reminders. If Mr Parton found another way of organising and planning his work he would be able to save costs such as labour and materials and gain more work.
Using Project Management Software (See appendix 8) Mr Parton can take advantage of a planning tool called Critical Path Analysis (CPA). Using critical Path Analysis (See appendix 9) would allow Mr Parton to plan new projects which means he will be able to decide when new projects start and finish. It would also help him make decisions on various factors including the amount of workers he needs for a specific job. Time is an important resource for Mr Parton’s business and Critical Path Analysis is an effective time management facility. Another benefit to using Critical Path is the fact that Mr Parton can plan projects ahead meaning he will be able to take on more jobs at one time because the computer will store all the information instead of him having to remember times and dates.
Each job Mr Parton does is individual in its own right. Different jobs require different materials and different numbers of workers. At the moment Mr Parton has to plan his jobs by remembering key events. A major flaw with this method is the fact that he may forget an important aspect of an individual job such ordering materials. An example would be one where he is doing an extension and the following week his workers need the bricks to start laying. Mr Parton may decide that he can remember to order the bricks and deliver them to the location of the job, but what if he forgets? Should Mr Parton forget, the bricks will not be ordered and the workers will not have any work to do for that week although, Mr Parton would still have to pay his labour costs which will cost him a great amount. Another flaw with this method is the fact that Mr Parton could remember to order the bricks but he sends them to the wrong job. This will also cost money since the job which was supposed to have the bricks delivered will not progress. This results in a delay which leads to the job finishing later and the dissatisfaction of the customer. CPA would eliminate the risks of these flaws occurring because Mr Parton would not have to remember what needs to be ordered, when and where because the Critical Path Analysis will tell him exactly which materials are needed, when they are needed and which job requires them.
Mr Parton also uses his mobile phone to set reminders. A major flaw with this method is that his mobile phone may be turned off the battery is dead. An example of where this may occur would be Mr Parton having to go a meet customer to discuss what the progression of a particular job and what needs to be done. If he has a reminder on his phone and his phone battery is dead he may forget that he needs to meet the customer. Mr Parton may miss the meeting and therefore has a very dissatisfied customer. If Mr Parton uses CPA he can plan that meeting in the job events and therefore at the end of the week he can look at the CPA and find that he has the meeting the following week.
Evaluating the Proposal
S Parton Construction Limited is a small building company located in Wolverhampton. It cannot afford to take on more jobs than it is currently doing unless it increases the number of contractors it employs. During my analysis of the business I found Mr Parton planned and managed his jobs using very simple methods such as storing reminders on his mobile phones and remembering key facts about his jobs. These methods are substantially flawed due to the risks posed when using them. I have come up with a proposal with the purpose of improving three key aspects of the business. These are managing production, planning production and improving efficiency. My Proposal was for Mr Parton to incorporate Project Management software with the ability to use critical path analysis.
He uses simplistic methods to plan and manage his jobs. Realistically these methods are not what I would call viable for his business to expand. Project management software is a viable option for Mr Parton should he choose to use it. It would allow him to take on more jobs and plan ahead meaning he could expand the business and make it more efficient and competitive. If Mr Parton wants to retain control of an enlarged business he would need to knowledge of how to use project management software and computers which can also take time to set up. There is a means of getting past this restriction which is to employ someone who is skilled in using the software for him. Obviously the downside to that would be labour costs although Mr Parton does have a wife who may be willing to use the software for him. This is important because my proposal is that should Mr Parton employ someone to use the software and plan the jobs, he can then concentrate on improving the business such as obtaining more jobs therefore expanding the business.
In order to use CPA effectively Mr Parton would need good estimates of the durations of each of the activities for each job. The more and more Mr Parton uses CPA the more and more experienced he becomes and his estimates will become more and more accurate in future jobs. Mr Parton can use the architects drawing as a guide to help him make estimates (see appendix 5 for example of an architects drawing). This is important because if these estimates are incorrect, the whole network is limited to what it can contribute. There is a more sophisticated method of project management software called the program evolution and review technique’ (PERT). PERT overcomes this problem by implementing probabilities to the estimations of the durations of the activities.
Time is an important resource for Mr Parton. CPA would help Mr Parton to complete jobs on schedule. By completing more than one activity at the same time, jobs can be completed quickly and efficiently i.e saving labour costs and raw materials costs. This is important because if Mr Parton’s business does not complete its jobs on schedule it will incur extra costs since it is using valuable resources such as skilled labour for longer periods of time. Doing work on listed buildings or service buildings may pose more of a risk since there may be contracts stating a job must be completed by a given date. If they are not completed on time the business may incur penalties.
Project management software also has its limitations. Highly complicated jobs may have so many activities that it becomes too difficult to manage the CPA network even when using a computer and skilled labour. Conversely, due to the recent advances in software it now means the latest CPA technology would allow Mr Parton to focus on small parts of a job at a time, such as working out when the bricks are going to be laid for a new conservatory, while keeping an overview of the bigger picture, such as analysing exactly how far the job has come to completing the conservatory and making quality checks.
Critical Path analysis can help save costs and make improvements in efficiency. This is important because the improved efficient management of resources can also aid Mr Parton in terms of managing working capital. Purchasing resources such as raw materials and labour exactly when they are needed (in other words implementing just in time production) means insufficient cash is not interwoven in redundant resources and assets such as unused labour or unused machinery and equipment.
The process of constructing a network is only part of project management. Things do not always go to plan and plans can become skewed. Planning jobs does not mean the job has been properly managed. Mr Parton would need to manage the job throughout its construction until it has been declared finished and the payment has been made. There will often be unforeseen delays and the network will need updating to reflect the actual real life situation. Mr Parton would also need to guard against complacency otherwise delays could become a reality.
When a delay occurs on an activity, such as a delivery of raw materials not arriving, it will affect all the other subsequent activities. Critical Path Analysis would show the implications of this delay to Mr Parton and he can therefore reschedule the following activities to ensure the overall delay to the job is minimal. It will allow Mr Parton to tell customers about the details of the delay and the new completion date of the job which will improve customer service. CPA is a very useful tool for anyone who is managing a project. It allows the project manager (in this case it would be Mr Parton) to organise and plan his jobs efficiently and effectively. However, in my interview with Marianne Douglas (see appendix 14) she made the point that there is a risk where Mr Parton may get too involved with the method and the software thus losing focus on the jobs he has to do.
Mr Parton feels he should run his company by himself however two people are always better than one. It would help him and his business if employed someone to plan the jobs for him while he tries to obtain the jobs therefore, he will have more time which will benefit him since he does not have as much work to do. In the first year on the implementation of CPA, the profit margin of the business may be low due to the lack of experience both Mr Parton and his employee have, not to mention the employee wages. As they both become more skilled at their duties the business will be able to gain and plan more jobs which should mean higher profit margins in the following years. This would be the payback period and should Mr Parton decide he does not want to use Project management software by himself then I recommend hiring an employee as a contingency plan.
The payback period of project management software will be high since Mr Parton’s business is so small in capital and labour. The investment into this proposal along with the possibility of employing someone would mean a minimum of 20% extra work since Mr Parton’s new role will be to obtain the jobs for the business while the new employee plans the work. The effect on the financial accounts of the year means sales revenue increases with the only expense going on the employee wages and this would improve once the employee becomes more highly skilled and Mr Parton gets more and more jobs.
In conclusion the implementation of my proposal (Project management software with critical path analysis) would grow the business and can therefore take advantage of economies of scale and as a result will make the business more efficient. There will be no risk of him forgetting to plan and manage key areas of the jobs he does and this will improve the efficiency and competitiveness of his business. The execution of critical path analysis will add a whole new dimension to Mr Parton’s business which will allow it to expand at an increasing rate year on year.
Appendix 1 – Interview Notes
I have had an interview with S Parton about his business to find out what affects it and what it actually does. These are the points that he made about various items.
- Information about the business
- The average turnover of the business was 750,000 per annum. At the time I thought this was good however, he made the point that this was small compared to other building standards.
- The business started in the year 2000
- Advertisements are not a point where the business prides itself on. It is mainly done by mouth and through the yellow pages.
- The kind of work that the business does includes school extensions, domestic extensions and grant aided work for disabled people
- He also does listed works including buildings, office works, insurance works and fire damage works
- He has also decided that he wants to stay in Wolverhampton because moving away would mean he has to start from scratch including advertising
- Last year he lost one day of work due to bad weather and he also said that 20-25 years ago he would have lost a lot more due to winter
Route for jobs
- The first thing that happens is the initial phone call
- Here, they find out where the job is because if it is not economically viable (over 20 miles away from Wolverhampton) then they often do not take the job
- What the job is such as extensions or refurbishments
- The distance depends on the type of job
- Specialist contractors (including electricians and plumbers) are taken to the site
- They then look over the work and suggest any possible improvements which could be made to the project
- An architects drawing may be required to take all the necessary information to come up with a thumb – nail sketch.
- He prefers to give quotes because they are legally binding rather than estimates
- He prices to get the work however he does not give the lowest price but the best value for money.
- Around 70% of quote become a live job
- That is better than other companies where the figure could be between 25-30%
- The leading time is 6-10 weeks to do extensions
- They look at the middle of winter and decide if the weather is good enough for them to be able to carry out the job
- He then agrees to start at a certain time then he calls Building Control (Council) a week before to let them know. Overall building control visit the site around 8 times.
- Health and safety is the next item that S Parton has to deal with
- Once this is all done he then sets up the site
- He uses scale drawings from the architect to work out the amount of materials that are needed
- He then digs the trenches for an extension and rings the council to come and inspect it
- Once he council are happy steel work and drainage would then go into the footings
- He again rings up the council to inspect who come on the same day
- Law states that the council have to come within 24hrs of being asked to
- Next the bricks are laid and the council again come to inspect. This is followed by insulation which goes below the concrete and as usual the council come to inspect it.
- The roof is then added to the structure and the council come to assess it again
- Once this is done the rest of the extension can be complete including the electrics, heating and ventilation.
- The end of the job is known as the second fix. This is finishing (E.G. Doors, skirting, Windows) and the council come for the final completion
- The customer is invoiced at different stages of the construction. After the first 2 weeks 30% of the contract figure is asked for.
- Between 4 – 6 weeks the customer is then invoiced again, this time 50% of the contract figure
- When it gets to the stage know as ‘Practical Completion’ 20% of the balance is required
- If he was working for the council they would deduct 2.5% for any possible defects that may occur between 6-12 months. If no defects were found he would get back the 2.5% and everyone is satisfied with the quality of the work.
Subcontractors
- Sub contractors are a key part of the S Parton’s Business.
- They have worked for him for over 25 years
- Some contractors may become too expensive therefore he may have to change to a different contractor
- He stated that he may have to delay a job if he cant get a sub contractor in time
- When they invoice him he pays on the day so he can gain their trust
- He also expects the job to be done properly and the comply with the building regulations
- Certificates also need to be supplied for electricians and gas fitters since the are specialist and dangerous jobs
Materials
The next item we talked about was how he kept up with new materials on the market.
- He said the internet was a great resource
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He was also involved in the Federation of metier builders
- Here they knew all about cutting edge new developments
- He also stated that generally new materials weren’t being made from scratch, but they were being improved with add – ons
- He looks for new materials which do the same job as others but are cheaper and he also said that if a specialist item is required then it would have to be imported from abroad.
- He has identified that he sometimes may need to pay more money for a small amount of materials and if there is any left over materials they are sent back
- His good relationship with suppliers means silly amounts of money for specialist items aren’t charged.
- Materials are put in a safe, dry environment and they are ordered within days of them being needed
His job
- He has a buy lifestyle with running his business. These are a few things which he told me:
- He tries to do 8 jobs at one time and does his best to get to each of them at least once a day
- 20 – 30 workers are employed on a daily basis
- He likes to know exactly what is happening
- He also uses his phone to set reminders and used to keep a written day
- It is up to him to make sure materials are always ready for his workers to use and they are never left waiting for work
- He also evaluates what he is going to do on the next day everyday.
- He tries to work on the West of Wolverhampton such as Codsall and Pattingham to avoid traffic problems
Equipment
- He used to buy his own equipment however certificates are now required so he hires them
- He has also found that storage and insurance for buying equipment are a problem so they’re not worth buying
Finance
- He stated that the business has an annual turnover of £750,000 and of that 22% goes to the government as cooperation tax
- Therefore he pushes the tax into the next financial year
- Every 2 weeks he looks at the health of the company
- He looks at the work he has at the moment and what money he owes in that particular time
- He works on averages and if he finds that the performance of the company is below average he looks for reasons why
Appendix 2
.
This table shows figures for the number of different household types in Wolverhampton, West Midlands and the rest of England.
What this table shows
As you can see from the table there are 81,458 houses and/or bungalows in Wolverhampton. Of this 16,528 of them are detached, 46,338 of them are semi-detached and 18,592 of them are terraced. Compare this to the figures for the West Midlands and the rest of the UK and Wolverhampton is a large area with plenty of properties and buildings which need work.
The information is relevant to the business because the more houses there are the more chance of customers who would need to have work done to their houses. People who live in flats may still have work done however the type of work available is restricted.
Appendix 3
This graph shows the amount of work done (£) on the construction industry.
What this table shows
This table shows that the total amount of work in the construction industry had been increasing steadily between 1995 and 2004 however; there has been a slight decrease since. Repair and maintenance seems to be the more popular type of work rather than brand new work. This means that there is more chance of S Parton doing repair and maintenance rather than doing new work.
Appendix 4
Average price history for all properties in Wolverhampton
This graph compares the average house prices from the years 2002 to 2007 in Wolverhampton and the rest of England. As you can see house prices have been steadily increasing over the past 4 years both in Wolverhampton and nationally. This also shows that the average house price in Wolverhampton is lower than the national average. This means that Wolverhampton is not as developed as other cities and is not as prosperous.
This can have an impact on S Parton because the graph is saying that since property prices are cheaper compared to properties elsewhere in England then this may template people to move house rather than have an extension or any other building work.
Appendix 5 – Architects drawing
The photocopy of the architects drawing is an actual example of the kind of information Mr Parton uses when starting a job. In this case the drawing shows the extension of a house. It has information on:
- What materials are needed and the length of them
- What the new building will look like
Appendix 7
Screenshots of Online magazines
- This is a website which gives information on new building regulations and innovations.
- Site: www.buildingproducts.co.uk
- Gives information on new building products and materials as well as information for architects
- This website gives information on materials on all sorts of building areas including flooring and insulation.
Appendix 8 - Examples of Project Management software
Microsoft Project
- Organize tasks, people and budgeting for large projects
- Easily track progress, troubleshoot processes and play out what-if scenarios
- Control project finances with Top-Down Budgeting
- Quickly master the project management process with the step-by-step Project Guide
- Add visual highlights like shading or colour with Background Cell Highlighting
Asta Easyplan
- Ease of use
- Planning and Progress reporting
- High quality print-outs
- Track project costs
- Share project plans
MinuteMan
- Great for managing simple projects
- Management of small or large projects, up to 1000 tasks
- Organise work and track progress using (Gantt) charts and a unique “work outline”
- Track cost of labour and expenditures
- Export charts, reports and timelines
Project Kickstart
- Easy-to-use project management program
- Project planning wizard gets project details organized quickly.
- Faster, more efficient, projects using our drag and drop libraries.
- See project schedules and tracking in Gantt chart.
Price - £79.23
DOVICO Timesheet
- Increase project profitability
- Compare budget vs actual time & costs
- Forecast cost estimates accurately
- Reduce project & resource costs
- Lower the cost of compliancy
- Increase overall productivity
Price - £72.00
iS*Project
- Effortless Task Management
- Highly customizable notifications
- Essential Task Details
- Project Management Reports
- Open Communication
Appendix 9 – Critical Path analysis
This diagram is an example of a critical path analysis diagram for a simple job which Mr Parton may undertake. The circles are called notes and they contain details of the earliest start times (which is located in the top right part of the node) and the latest finish times (which is located in the bottom right part of the node). The lines and letters indicate what methods are currently taking place. More than one job can be undertaken at the same time. For example if you look at nodes 7-8 you can see that there are three activities taking place, G, G1 and G2. By looking at the key you can see what jobs are taking place at that time.
Critical Path analysis would allow Mr Parton to determine how quickly the job will be completed without any slack times or delays.
Appendix 10 – Grants Aided work
Disability facility grant for a private property
Who can apply for the grant?
You can apply for a grant if you are:
- a tenant or owner of a property
- a landlord on behalf of a disabled tenant.
The person who applies for the grant does not have to be the disabled person who needs the alterations. We will ask the person applying for the grant to produce a certificate stating that the disabled person will live in the house for at least five years.
We require anyone who applies for the grant to produce a certificate of ownership or tenancy.
What type of work is eligible?
Disabled Facility Grants are awarded for essential adaptations to give a disabled person better freedom of movement around the house. This includes:
- Widening doors or installing ramps
- Providing a specially adapted room in which it is safe to leave a disabled person unattended
- Installing a stair lift so there is better access to a bathroom, kitchen or bedroom
- Installing a downstairs bathroom
- Improving or installing a heating system which is suitable for the disabled person.
Does the council have to give me the grant?
The council will have to ensure that the work is:
- Necessary
- Appropriate
- Reasonable
- Practicable
- Feasible.
Appendix 11 – Building Control
Role of building control
The Building Control system exists to make sure that buildings are properly designed and constructed so as to ensure the health, safety, welfare and convenience of people using them.
Building Control is the responsibility of the Building Consultancy section of the Planning function at Wolverhampton City Council
Stages of building control
Building control generally operates as a two-stage process, referred to as the Full Plans application.
The first stage (known as the plan stage) involves the applicant submitting detailed plans for approval. These plans are very carefully checked by a Building Control Officer to ensure that all necessary information is shown, and that it complies fully with the Building Regulations. Wherever possible, applicants are given the opportunity to make amendments (if required) before either an approval, conditional approval or rejection is given.
The second stage (inspection stage) starts when work commences on site after which a series of site visits are made to check that the work proceeds in accordance with the plan, and hence complies with the regulations.
For more simple works an alternative, called the Building Notice application, is also available together with more specialised application types to meet specific needs.
Building control in Wolverhampton
It comprises of two teams of surveyors and a technical support team. One team of surveyors is responsible for the North of the Wolverhampton and the City Centre. The other team is responsible for the South of the City.
It should be noted that where building work is to be carried out it may require either a Building Regulation or Planning Application, or both.
Appendix 12 – Health and Safety
The employer's duty of care in practice
All employers, whatever the size of the business, must:
- Make the workplace safe
- Prevent risks to health
- Ensure that plant and machinery is safe to use, and that safe working practices are set up and followed
- Make sure that all materials are handled, stored and used safely
- Provide adequate first aid facilities
- Tell you about any potential hazards from the work you do, chemicals and other substances used by the firm, and give you information, instructions, training and supervision as needed
- Set up emergency plans
- Make sure that ventilation, temperature, lighting, and toilet, washing and rest facilities all meet health, safety and welfare requirements
- Check that the right work equipment is provided and is properly used and regularly maintained
- Prevent or control exposure to substances that may damage your health
- Take precautions against the risks caused by flammable or explosive hazards, electrical equipment, noise and radiation
- Avoid potentially dangerous work involving manual handling (and if it can't be avoided, take precautions to reduce the risk of injury)
- Provide health supervision as needed
- Provide protective clothing or equipment free of charge (if risks can't be removed or adequately controlled by any other means)
- Ensure that the right warning signs are provided and looked after
- Report certain accidents, injuries, diseases and dangerous occurrences to either the Health and Safety Executive (HSE) or the local authority, depending on the type of business
(Source: www.direct.gov.uk)
Appendix 13 – Planning Permission
When you need to apply
Here are some common examples where you would need to apply for planning permission:
- Adding or extending a flat or maisonette, including those converted from houses
- Dividing off part of your house for use as a separate home (for example, a self-contained flat or bed-sit)
- Using a building or caravan in your garden as a separate residence for someone else
- Building a separate house in your garden
- Dividing off part of your home for business or commercial use (for example, a workshop) or building a parking place for a commercial vehicle
- Building something which goes against the terms of the original planning permission for your house (for example, a planning condition may have been imposed to stop you putting up a fence in the front garden because the house is on an ''open plan'' estate)
- Work you want to do might obstruct the view of road users
- Work would involve a new or wider access to a trunk or classified road
When you don't need to apply
You can make certain types of minor changes to your home without needing to apply for planning permission. These are called your ' permitted development rights'.
Planning permission is generally not required for:
- Changes to the inside of buildings
- Small alterations to the outside, such as the installation of telephone connections and alarm boxes
- Other small changes, for example putting up walls and fences below a certain height
(Source: www.direct.gov.uk)
Appendix 14
Interview with Marianne Douglas from Wolverhampton city council
I have conducted an interview with Marianne Douglas (Project management trainer) to find out about Project Management and how this could help Mr Parton and his business.
The main Project Overview
- There is a sequence of tasks
- There are different resources
- There is a limited time span
- The project manager’s responsibility is to make sure the projects objectives are met
- There are also risks and issues
Projects fail because:
- Poor planning
- Communicating with the wrong people
- Inaccurate estimating of the time and effort required
- There are a lack of skills of resources
Projects succeed because:
- Clear organisation structure
- Good communication between manager and team workers
- Time spent planning and re-planning
The project lifecycle
- Project proposal is drawn up and maybe rejected or accepted
- Putting together the outline of the project
- Doing what has been planned
- This stage occurs when all the business objectives have been achieved
She stated that although project management software such as Microsoft Project were good tools to have, they would often distract the users therefore they would lose focus on the project since they are becoming too bogged down with the IT.
