The handbook of supply chain management (C546)

This handbook has been developed by The Tavistock Institute to present the generic lessons from the 'Building Down Barriers' approach to supply chain management. Building Down Barriers (BDB) has been piloted on construction projects for Defence Estates on behalf of the Ministry of Defence. Project leadership from the MoD, close and active support from the DETR, encouragement and endorsement from HM Treasury and the enthusiastic involvement of two major construction contractors, AMEC and Laing, have resulted in this unique publication. BDB is a systematic and managed approach to procurement and maintenance of buildings based on a pre-assembled supply chain, delivered to the client through a single point of responsibility known as the prime contractor. A statement from the Office of Government Commerce of 22nd May 2000 specifies that, as part of the Achieving Excellence programme for public procurement launched by the Chief Secretary of the Treasury in 1999, 'From 1st June 2000 all Central Government clients should … limit their procurement strategies for the delivery of new building to PFI, Design and Build and Prime Contracting.' It is based on seven underlying principles covering competition through value, understanding clients’ real needs, developing long-term supplier relationships, integrating project activities into clusters, using target costing, implementing continuous improvement and developing human resources.

The pilot projects have shown significant benefits for the client (operating both as budget-holder and end-user of the facility) and for the supply chain. These benefits have been in terms of faster delivery on site, improved productivity of the site workforce, improved profitability for the supply chain, reduced through-life cost for the budget holder and improved functionality of the building for the users. This publication provides a constructive toolset which the construction industry can take up to deliver the radical reforms demanded by the Deputy Prime Minister. In pilot projects, it has delivered productivity and quality improvements and proved beyond doubt that the BDB toolset provides the industry with a viable route map for radical change. The Foreword has been written by Nick Raynsford, Construction Minister at the DETR; Lewis Moonie, Under Secretary of State at the Ministry of Defence and Andrew Smith, Chief Secretary at HM Treasury.

Key words: project management, procurement, supply chain management.

ISBN: 978-0-86017-546-9

Author: R Holti, D Nicolini and M Smalley

Number of pages: 95 (paperback)

Publisher: CIRIA

Date of Publication: September 2000