THE CONSTRUCTION INDUSTRY VALUE CHAIN
DBA ASSIGNMENT
PRESENTATION BY HENRY B NJUGUNA, ESAMI
THE CONSTRUCTION INDUSTRY IN KENYA AND
TANZANIA: UNDERSTANDING THE MECHANISMS
THAT PROMOTE GROWTH.
The construction industry is a very important one. Globally the annual value of the construction industry is of the order of 1.5 trillion dollars constituting about 8% of
GDP and about 60% of fixed capital formation. It is one of the most relevant forces of the world economy representing 7% of its total employment. In Kenya and in
Tanzania, the construction industry is a key indicator and driver of economic activity and wealth creation
The construction sector involves the construction of a wide range of public and private sector
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contractors also use them as advisors and in assisting in project management
Client comprise the public sector [government] , the private sector as well as individuals Banks and financial institutions provide financial services and advice to resource manufactures, contractors, consultants and clients
Recourse manufacturers, transporters and contractors all require a variety of equipment and machinery as well as spare-parts. These are provided for by the
Equipment manufacturers and retailers.
Building Construction Value Chain:
Structure
Metal Hardware
(Production/ Import
/Wholesale)
Sand, Earth & Gravel
Cement Industry
Mining
(Limestone,
Gravel stones, Marble)
Forestry
Concrete Pipes
Hollow Blocks
Concrete Tiles
Marble Production
Logging Sawmills
Sanitary Ware
Electricals
Paints&Lacquer
Consultants
General
Contractors
Specialist
Contractors
Retail Trade
Timber
Clients- Govt/Private Sector
Metalworks & Furniture
Furniture
Transport Services, Energy & Water
Equipment & Spare Parts
Banking,Financial & Business Services,
FIGURE 2: THE BUILDING CONSTRUCTION VALUE CHAIN AND THE POSITIONING
OF VARIOUS ACTORS
HENRY B. NJUGUNA enghbnjuguna2@yahoo.com [ESAMI updated Sept. 2008]Page 4
Part 2- THE CONTRIBUTION AND POSITIONING OF THE VARIOUS
PLAYERS WITHIN THE VALUE CHAIN
Labour
15 – 30 %
Financial
Inputs
10 – 15 %
Raw materials 30 – 50 %
SNC’s five paragraph order was delivered meek tone which lacked authority and command presence; SNC appeared aloof and distant throughout the brief. SNC’s Situation paragraph included fabricated information contrary to what the evaluator briefed; these omissions caused the squad to not understand the mission. SNC briefed specific, relevant tasks but failed to brief any coordinating instructions beyond “attack begins immediately after this order.” SNC briefed Admin and Logistics as “unchanged since the last order.” SNC’s brief was punctuated with filler words. SNC departed towards the objective without the ammo cans required to complete the mission. During movement to the objective, dispersion was poor; at most times 5 candidates were
In recent years, the requirements of commercial and industrial operations in the production of services and goods have been subject to vast changes. In the present era of globalization and increasing international competition, a trend away from vertically integrated organizations has become more and more evident. In fact, most companies nowadays tend to solely concentrate on their own core competencies, outsourcing different steps of the production. However, including a great many of other organizational units to the production systems, has lead to rising complexity in terms of the operations management (Plenert, 2012).
CertaSeal Construction Corporation is a full-service roof contracting company that is located in Naperville, Illinois. CertaSeal Construction Corporation serves the Chicago area and the Chicagoland suburbs. The service areas they cover include Schaumburg, Aurora, Naperville, Bolingbrook, Skokie, Palatine, Orland Park, Evanston, Arlington Heights, Wheaton, St. Charles, Hoffman Estates, and Joliet. CertaSeal Construction Corporation also caters the northwest Indiana and southern Wisconsin area. This roof contracting company is a family owned and operated roofing business. CertaSeal Construction Corporation was established in 2008. Their services include commercial roofing, residential roofing, siding, and gutters. CertaSeal Construction Corporation
The basic requirements for operation managements is understanding of the customers’ needs and satisfied them, and use fewer resources to maximise the efficiency and effective of the company’s productivity. Therefore two typical Australia companies have been shown blew. One is the largest Australian supermarket, Woolworths Limited, and another one is the largest airline company in Australia, Qantas Limited.
the capital intensity ratio is high then the lower the self-supporting growth rate will be
A 2013 survey Corruption in the UK Construction Industry conducted by the Charted Institute of Builders (CIOB, 2013), which surveyed 701 construction professionals, the majority of whom described themselves as being of ‘senior management level’, although this survey involved mainly senior management, it is important to note that corruption can occur at any level within an organisation. The results of the survey presented a number of important findings about the state of the industry; first and most significantly that 49% of respondents believed that corruption is common (fairly or extremely) within the UK construction industry, this represents almost half of those surveyed and provides a damning insight into the prevalence of corruption.
My organization has 90+ years of Property and Casualty insurance experience and has survived and profited through many iterations of technological advances while servicing a demanding customer-based market through traditional interactions. These interactions have always been adequate for the customer’s experience, or their expectations have been met by the insurance industry, my company included. With the successes and innovations from companies like Amazon and Google and the experiences created within those customer interactions, the demands and expectations have grown dramatically. The traditional methods within my organization’s value chain must adapt to endure these expectations. In order to compete profitably, a transition into the
Different barriers was occurred when implement the earned value analysis into the project. They are
the largest contributor to the industrial growth of the country. It is a crucial and enduring
The three specific dimensions – human focus, resource focus and management focus are of equal importance for running a successful construction company. Given that management techniques are not universal it is hard to summarise the most adequate approach for the construction sector, due to the huge diversity within it. As many other commentators have noted human focus provides motivation and good work environment. However focusing on a single dimension is atomistic and causes problems For example, senior directors are often misguided in thinking that proper management strategy is the only objective. In the context of the construction sector, targeting the proper allocation of resources as well as concern for the employees’ wellbeing would
Manufacturing, the process responsible for producing any goods manipulated from their raw form, whether transforming steel into an automotive vehicle or grains into cereal, this fundamental component of the value chain plays a central role in the world economy. Born during the industrial revolution, many of the processes remain the same, with executives running the factory, supervisors overseeing operations, shop floor workers creating the product, and maintenance workers ensuring the smooth running of equipment. While these processes have transcended time relatively unchanged, the technology and tools employed by workers to complete these processes has changed, albeit slowly in some cases. Driven by executive pressure to reduce costs and improve margins, factories through the ages have engaged in strategic moves to diminish the expenses of labor. Moving to areas with less stringent regulations and lower labor costs or investing in technologies that automate human tasks, competitive pressures has made the manufacturing sector one of the most technologically evolved.
The emergence of global value chains has been one of the most important paths to economic growth in the age of globalization. A global value chain typically focuses on building efficiencies for business on the inbound and outbound logistics component of the value chain, where the process of producing a good has been divided into multiple components. Any given good is the product of resource extractors, component subcontractors, assembly and logistics, in addition to the design and marketing functions (OECD, 2007).
It contributes for a good part of a country’s G.D.P and is also one of the vital means of income for developing countries of the world.
Developed in 1930s, GDP defined as the value of all the goods and services produced within a country in a given financial year (Heloisa, 2012). GDP is significant as it measures size and performance of an economy. GDP uses growth rate to quantity the economic activity and this assists policy makers to adjust and implement economic policy during recession and depression, as it obliges as a precise indicator of the business climate where it provides all the essential data to government and business so they can adjust and think of ways to survive (Macroeconomics, 2011). Economically it functions as a modest representation for social and economic welfare of a country and this helps economist worldwide to study and compare different countries in terms of life expectancy, wealth, income, education level and many other indicators (Macroeconomics, 2011).
Construction industry plays an important part as a stimulant in Malaysia’s economy. The Construction Industry Development Board (CIDB) was established as a government agency to facilitate and act as a catalyst to the development, is generally representing the construction industry to the government and the public. (Chan, 2009). According to Hiap (2012), the CIDB published a ten year Construction Industry Master Plan (CIMP) towards the end of year 2007, the aim is to refocus the strategic position and charting the future direction of the industry.