Business Procurement and Contractual Practice L&T Sample
Executive Summary
With the help of Asset Insights, the Bangalore International Airport (BIAL) project is mapping equipment in order to optimize turnaround times and speed up the flow of people and machines.
The employment of autonomous machines in motor graders and excavators has boosted the speed and accuracy of BIAL’s equipment, while the invention of the mulching machine in-house has reduced the time and costs involved with equipment acquisition. Despite operating in difficult conditions, the Karodi Aurangabad Expressway project has regularly produced more than 900 cubic metres of transit mixer every month, despite the fact that it is under construction.
In India, a mix of grid and solar power (PNG) is being used to satisfy plant and camp power requirements for projects like as the Helwan Karad Road Project, the Dholera Smart City, and the Delhi International Airport, to name a few examples.
Case Study
In a study of business training, the need of balancing owned and leased equipment, equipment life-cycle management, skill upgradation, and profitable fleet management in combination with project objectives is highlighted as a crucial point of emphasis. According to the paper, “a unified approach to construction quality and P&M efficiency improvement in a market congested with new competitors is leading to higher construction productivity and corporate competitiveness (Callens,2022).”
Beyond fostering business acumen in team members, this strategy has facilitated a culture transformation that is supporting RREC in optimising solutions, improving team engagement and cutting expenses to levels never seen before, as well as creating important differentiators via value creation.
As Jain,(2019)puts it, “pace and time determine contemporary construction,” and “P&M involves integrating solutions with stated objectives to create operational excellence” in order to meet these demands, according to Rajan.
A company’s capacity to decrease expenses and negotiate rate agreements is critical to its long-term survival and profitability.
As part of their attempts to enhance the bottom line, they have implemented the following measures: “In order to cut expenses,” DKS and his colleagues have organised task teams and ordered SCM to renegotiate all key current contracts, as indicated by DKS.
For fiscal year 2020, the anticipated annual expenditure base was INR 618 crores, and the re-negotiation began with an internal aim of reducing the cost by INR 30 crores by the third quarter of fiscal year 2020 via reverse auctions and item rate contracts on vital infrastructure.
“This strategy did not include the incorporation of offshore subcontracts, despite the fact that project managers and project directors were also engaged,” he explains.
Before they were accepted, all work and purchase orders for all projects were subjected to a thorough review and assessment process. Additionally, aggregate and concrete transportation were included in the work orders, in addition to pre-stressing, pre-stressing, quarrying and crushing, and equipment rental. According to the list of criteria, two of the materials that were required to be bought were mixture and fly ash, respectively (Lv,2019).
According to Sumit, “a big accomplishment will be locked in at INR 51 Crores by March 2020 as a consequence of E&Y’s proactive execution of our efforts,” but “it is a continuing process and we cannot afford to rest on our laurels.”
THE HOUSEHOLD’S COMMUNICATION
When it comes to maximising value, it is important to blend owned and leased equipment in a way that is governed by productivity requirements, while also increasing energy efficiency and responsiveness to digital technologies. P&M is integrating solutions with the goal of operating at the highest possible level in order to meet the objectives of the present construction project.”
Nonetheless, after the presentation of the plan to management, the subject was sent to E&Y, and the board of directors unanimously agreed on a revised objective of INR 100 crores for the company.
“Tough targets necessitate tough strategies and equally tough actions in order to achieve them,” says Sumit Bardhan, TI IC’s Head of Supply Chain Management. “As a result, we carefully evolved our strategy by examining major spend areas such as earthwork, transportation, aggregate procurement, and production that were already in operation.” The vast bulk of our effort was devoted examining subcontracts with a total value more than INR 10 billion. LD and the Retention Deposit both had a major influence on pricing for certain subcontracts, however a partial relaxation that was suitable with our risk profile allowed them to pass through one-time cost savings to us.”
The competitiveness of recruiting contracts may be improved by reorganising them at the regional and local levels.
B&F has been able to increase operational efficiency by reducing rework, reducing repetitive labour, and saving expenditures in order to increase production levels. This has been done via the use of value engineering techniques and the adoption of best practises. When precast engineering is widely used, a number of benefits accrue, including faster construction time, greater standardisation, less reliance on in-situ construction, and higher quality. Precast engineering has a number of advantages over other construction methods, including faster construction time and increased quality. The stadiums at Al Rayyan and Motera are also excellent examples of this kind of construction. Project duration and costs are lowered by 30-40 percent when using industrial prefabricated building technology, for example, while the efficiency of manufacturing staff is boosted by 40-50 percent.
According to the firm, the Gallow ACS system was developed and used for the first time in the history of Indian construction at the ICC Towers Project in Mumbai, where a large amount of the company’s work is carried out at tremendous heights. As a consequence of using this strategy, we were able to reduce the amount of resources necessary and reduce the cycle time to only six days. Prestige Smart City and Prestige Jindal City, both of which are located in Bengaluru, have benefited from the usage of aluminium slab formwork for the non-tower components of their development.
Because of the growth of digital technology, achieving operational effectiveness has become much more straightforward in our quest for efficiency.
Conclusion
The use of the Internet of Things (IoT) to gather and analyse data from P&M strategic assets has enabled us to save a significant amount of money in the P&M Life Cycle Management process, which has already resulted in significant cost savings for the company. Using the Internet of Things (IoT) to gather and analyse data from P&M strategic assets has enabled us to save a substantial amount of money in the P&M Life Cycle Management process, which has already resulted in significant cost savings for the The reduction in the quantity of rubbish created on-site has also been a focus of recent efforts. It has been possible to reduce waste by using BBS automation technologies to minimise and optimise offcuts. Waste reduction has also been accomplished via the use of computerised concrete requisitions, which are now widely available. There has been widespread agreement on the need of increasing the productivity of construction workers. When using digital programmes such as WISA and Procube, it is now possible to measure workers’ biometrics in real time, making it possible to keep track of where they are in a project and boost their output.
References
Callens, C., Verhoest, K. and Boon, J., 2022. Combined effects of procurement and collaboration on innovation in public-private-partnerships: a qualitative comparative analysis of 24 infrastructure projects. Public Management Review, pp.1-22.
Jain, A. and Ponde, S., 2020. RECRUITMENT OF IT PROFESSIONALS IN MALAYSIA: CHALLENGES FACED BY L&T INFOTECH LIMITED, MUMBAI. Prestige International Journal of Management and Research, 11(3), pp.99-104.
Li, J., Greenwood, D. and Kassem, M., 2019. Blockchain in the built environment and construction industry: A systematic review, conceptual models and practical use cases. Automation in construction, 102, pp.288-307.
Lv, F., Xiao, L., Xu, M. and Guan, X., 2019. Quantity-payment versus two-part tariff contracts in an assembly system with asymmetric cost information. Transportation Research Part E: Logistics and Transportation Review, 129, pp.60-80.
Naval, F., India In.
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