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Chapter 23: Application of DMAIC Approach to Improve the Centralized Procurement Process in Construction Logistics Enterprises

    https://doi.org/10.1142/9789813272491_0023Cited by:1 (Source: Crossref)
    Abstract:

    Due to the advantages of the centralized procurement of materials in the AEC industry, the number of emerging logistics enterprises has been on a rise in recent years in China. According to the manner of payments in construction projects, such logistics enterprises play the role of purchasing the construction materials for projects under construction by advancing funds. However, redundant processes in construction logistics enterprises result in massive funds being piled up and lower efficiency, which usually weakens the advantages of the centralized procurement. Therefore, this chapter presents a case study on the process improvement to identify the appropriate method to eliminate the valueless process in centralized procurement and improve the productivity in the construction logistics enterprise. Six Sigma is an advanced self-control process that aims to produce or deliver near-perfect products and services, which is implemented in this chapter by integrating DMAIC approach and flow chart. Taking account of the distinct properties between the AEC industry and the manufacturing industry, this chapter first constructs the configuration of construction logistics under centralized procurement, which facilitates the process differently from that existing in most previous researches. The current process in a construction logistics enterprise is represented in the flow chart format. Then according to the flow chart in practice, the process improvement is achieved by using DMAIC approach containing five basic steps. Finally, a case study is used to verify the performance of the improved process by comparing it with the existing process. The entire process time and the actual work time have been reduced by 52% and 53%, respectively, in this case.