Assignment on

Operations
Management
principles
Local Construction
Company
S o u t h Ya r r a
Melbourne

Victoria

The traditionally owned construction companies are

considered as the close corporation or a privately held
company. This type of organizations is mainly owned by a
small local contractor. . Such organizations are mainly
established by a family member in order to make the
organization as the biggest enterprise.

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Introduction
The construction industry is considered as a part of national economy which is mainly engaged in formation of
construction and land, modifications and renovation of different structures, buildings and another real property. There are
various fields of construction industry that can be utilized by an individual for developing and providing

efforts in

construction field. The report will discuss about traditionally owned construction companies which are owned and
operated by two sphere activities and rarely beyond various generation. The report will also describe about organizational
structures and strategies in an existing construction company. Further, it will be providing the reasons of how local
contractor owned their business, structure and carry out their field of operations.

Structure and fields of operation in Construction

Company
The traditionally owned construction companies are considered as the close corporation or a privately held
company. This type of organizations is mainly owned by a small local contractor. . Such organizations are mainly
established by a family member in order to make the organization as the biggest enterprise. These construction
companies are mainly holed privately as the business has small number of shareholders. The family members are also
considered as the part of the business and they essentially provide their efforts in the business (Ball, 2014). Construction
work needs a strong chain of command to build responsible project management and for carrying out safety at the
workplace.
The construction company includes construction of different public infrastructure and buildings for improvement of
various industries and cities. Construction is considered as an important aspect of any countrys economic

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development as it is considered as an emerging business. Even there is appropriate formation of structure for carrying
out the activities within construction industry. Under, this sector company requires skilled and talented architects and
engineers to improve the design of construction project. This is considered as both on-site and off-site projects. The
construction organizations have followed the hierarchy structure in order to manage and control construction projects in a
smooth and effective way (Fisk and Reynolds, 2011). The hierarchy structure of construction organization has been
distributed mainly into various job profiles such as civil engineer, construction manager, project manager, site engineer
and architect engineer and they all are organized in a proper and organized way of hierarchy. Under them there are
workers who are seen to be semi-skilled or unskilled who participate in carrying out the working in a significant manner.
This hierarchy provides a proper framework that can be adopted by local contractor for carrying out their construction in a
smother manner.
There are various field operations in construction project and operational employees of civil construction
project are more closely to associate with everyday development of the projects, observing the production and
performance of the employees and also planning, cooperating, scheduling and controlling another field worker
(Zavadskas.et.al, 2010). The field workers are responsible to carry out field operations and also take part in every day
operations of the construction field. They are responsible to perform their operations in proper way and successfully
accomplish the projects. The different operations which are accomplished by labors in the construction activities includes
material management, prepare structure of construction project, formation of different materials and their utilization in the
project etc. The field operations that are carried out by the labors provides a better structure for carrying out construction
of the project (Gadde and Dubois, 2010). The system of material requirement is also considered as an essential part of
field operations in which various records are accumulated about the materials and purchasing needs of construction
material.

Reasons for above answer

The construction company is privately owned as family member establishes the company by their own. Even
privately owned construction companies are considered as One Person Company. The construction company is privately
held as they provide various benefits to the owner of the company and also improves the business in the market. In the
present scenario, there is a family which privately owns there company from generations (KarimiAzari.et.al, 2011). The
privately owned construction company is established by the oldest family members and it is continuously developing by
the generations of the family which own this company.
The privately owned company uses hierarchical structure of organization. This structure is considered as the
fundamental structure of a company. This organizational structure helpful for the business of construction organization
as the business has vertical levels to leading top company which is owned privately (Knippers and Speck, 2012). The
owner of the organization is responsible to provide clear defined roles and responsibilities to the employees who are
belonging to the structure of company. The hierarchical organization structure mainly follows the structure of pyramid.
This structure involves several entities which descend on the basis of staff level employees. The hierarchical structure of
construction industry provides various benefits to the organization and to their employees (Nieto-Morote and Ruz-Vila,
2011). The employees of privately held organization are able to understand various levels of leadership in the
construction company and the authority of the organization is responsible to provide understanding of clear and obvious

goals to the staff members. The employees are able to provide more benefits to the construction business as they clearly
understand the goals and objectives of the organization.
The operational field of Construction Company is very essential as it responsible to make an appropriate structure
of construction project. The labors are considered as the main part of the construction project because they are making
the proper framework along with the builders and architects of the company. The construction manager is mainly
responsible to manage the project in a proper and sustainable manner (Ball, 2014). The traditional construction company
has its reliable civil engineering team i.e. labors and employees which make the project proper and without any problem.
Furthermore, nowadays there are various systems and software which makes the construction project easy and
manages all the activities and operations of the project in an enhanced way.

Focus on how they would tackle moving into different fields of

endeavor in their immediate locality or distant regions
The local contractor construction company could enhance their business by adopting some new techniques and
technologies for carrying out their operations. For example, if the construction business wants to adopt construction
management system then the company has to carry out a market research which provides essential information about
the expected adoption product or services (Zavadskas.et.al, 2010). Construction management is considered as the
fundamental approach in major building projects and it provides professional expertise in the area of system analysis,
evaluation of cost, value engineering and to review the constructability of designed project and construction activities.
Company should conduct a market research which is used to encourage planning, budgeting and proper process of
decision making about the new changes in the organization (Walker, 2015). The company should use different strategies
and methods of market communication which helps to develop their understanding about the proposed change in the
company along with the innovation in the organization.
The construction company expected various changes by adopting the new system in the company and expects to
attain further advantages in the industry. Organization uses various types of research on construction projects and collect
information from different sources (Eadie.et.al, 2013). The new change in the organization leads to different aims and
objectives of the enterprise for achieving competitive position in the market.

Models of operations management

Operation management is central and important process for effective running of company. Operation management can
be diversified in different types of businesses. There are included different activities and models of operation
management like supply chain management, value chain additions, inventory management and control management.
Operation management and its effectiveness treated as key issue for successful organisation (Valencia 2010).
By effective operations management we can analyse requirements of customers and can generate option to fulfil
customers and market demand and help in developing competitive advantage in organisation. With increased demand
and requirement of customers a company should plan to provide customer oriented services by way of customisation of
services and provide additional features and improve by way of improved operational management. This essay is an
overview of role and importance of effective operational management in organisation is elaborated by discussing a case
study.

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In a manufacturing company there is used manufacturing operational management model or process which is liable for
execution of production process in efficient manner. Management and balance between the inputs and outputs is
evaluated and monitored by operation management which can be done by using effective tools and models (operations
management 2016). These models are selected by organisations after strategic analyses of different options with
consideration of organisational needs. There can be adopted different operational management process for organisation
in expention, growth and transformation position. In situation of the Hawkesbury, Company was effectively satisfying its
customer and this leads to increase in the customers in different countries with different demands and requirements for
their kitchen cabinets. Company is producing its products from single manufacturing unit and also providing standardised
products to its customers. But with this increased demand of companies products in different countries company have
analyse requirement of customised products to fulfil specified needs of customers to satisfy them and for this reason
company has introduced a new builders kitchen which is helping in managing both line of production in company
(Bhattacharya, et.al 2016). Strategic planning and management of company is providing standardisation and
customisation on different geographic places after analysing the requirement and demand of customers. Company is still
providing standardised products on low cost to maintain market position of company. Operation management model and
process is defined as main and central function of any organisation which is important to execute agenda of company.
Hawkesbury is a manufacturing company and using transformational process for doing its operations and manage them
(Brennan, 2011).
Transformation process can be defined as to transform inputs into outputs by adding value to them and make them
productive by using different transformational process. In this transformation process there are inputs like raw materials,
resources and transformation process are to add value in them by developing and moulding them and providing outputs
to customers and clients and satisfying them effectively. Transformation process changes and alters physical
characteristics of inputs and materials. Location and ownership is also changed and transferred in this process.
Accommodation and storage is also altered of products and there are changed psychology of customers and clients.
Currently in Hawkesbury there are using manufacturing transformation model of process for producing kitchen cabinets
by using different inputs like raw material, resources and providing outputs to clients after transformation process.
Company is using quality inputs and materials which is helping in providing quality products to clients and also there are
effective management of equipment and tools as in they kept separate and manufacturing is done by same craftsman in
both standardisation and customisation production process (Collier, et. Al 2014).
Operational management provides accessibility to manage all the issues which are emerging due to any advancement
and changes in companys activities and process. Founders of company Fung and Mie Chen has overviewed and
analysed effects of this new addition in companys production process on organisational growth (Coughlan, 2014). In the
process to change and enhance model of operation management there can emerge some issues in a company like
management issues, financial issues and resistance to change.
This new addition can lead to increase in companys turnover due to increased demand and supply of products. This is
also helping in developing competitive advantage of company to compete in global market. This new addition in
manufacturing and technical advancement is leading to increase in production cost and prices are also increasing due to
this. Profitability ratio is also decreasing because of increased cost of production and product prices ( Roy, et. Al 2012).
Company is producing to its highest capacity and also producing standardised products with low cost to manage its

position and covering the market. This leads to lack of space and storage and there comes requirement to take rented
place to store finished products and this is also a reason to the increased cost of production and decreased profitability
ratio (Dickinson, 2015). Management of company is emerging as effectively adopting these changes and making efforts
to satisfying customers demands to manage the new addition in the manufacturing process. Customisation is providing
priority by company and this is leading to increased idle time in production process and increasing delivery period of
products and this can be emerge a serious problem for company (Hill, et. Al 2012).
Financial and Cost management is important to be adopted in operations of company. There should be effective financial
planning in the process of operation management of company. Effective financial and capital structure should be
managed in company and activities should be in the direction to effectively adopt changes in transformation process
without affecting financial structure of company (Chen, 2011). There can be emerge problems like ineffective financial
planning and application of capital which can lead to inefficiency of cash flow and low performance of company.
Hawkesbury is a manufacturing company executing its operations on the basis of transformation process by using
contemporary approach. Company is collecting and managing requirements of capital and funds by its own by issuing
share capital and debentures to general public. By the new addition of in manufacturing process company has adopted
supply chain management to manage different activities in its operational management (Meredith JR, et. Al 2013).
There emerges problem of effective and strategic financial management in company as in there is a huge part is invested
in purchasing raw material and capital is blocked which is affecting financial structure of company. Producing builders
kitchen is making impact on manufacturing operation model using by company which was standardised and now it is
customised and this is increasing turnover of company by increasing supply of companys products (Nenni, et. Al 2014).
Cost management is also affected by this new production process as in company is also manufacturing standardised
products for low cost to maintain its market position and this is leading companys highest limits and rented place is taken
to keep and store finished goods. This is increasing cost of production and increasing prices of products. Due to this
profitability ratio is decreased of company.
Operation management is central process or its activities like supply chain management, project management,
manufacturing operation management, quality and control management are essential for success of any organisation.
This essay is a detailed study of operational management and its importance and different models and their applicability
with reference of case study of Hawkesbury Cabinets which is introducing new builders kitchen in its activities and
providing customized products with the standardisation. We have studied about the operation management model and
process using by company with the impacts of the new additional manufacturing process on it. Different impacts on
financial and operational structures are overviewed by management of company by this report.

Conclusion
The operations management principles assignment report has identified that the traditionally owned construction
companies are considered as the close corporation or a privately held company. The construction company includes
construction of different infrastructure and buildings for improvement of various industries and cities. Construction is
considered as an important aspect of any countrys economic development as it is considered as an emerging business.
The report also identified that there are various field operations in construction project and operational employees of

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construction project are more closely associated with everyday development of the projects, observing the production
and performance of the employees and also planning, cooperating, scheduling and controlling another field worker.
Moreover, it has been analyzed that the hierarchical organization structure mainly follows the structure of pyramid. This
structure involves several entities which descend in the basis of staff level employees.

References
Books and Journals

Ball, M., 2014. Rebuilding Construction (Routledge Revivals): Economic Change in the British Construction
Industry. Routledge.

Eadie, R., Browne, M., Odeyinka, H., McKeown, C. and McNiff, S., 2013. BIM implementation throughout the UK
construction project lifecycle: An analysis. Automation in Construction, 36, pp.145-151.

Fisk, E.R. and Reynolds, W.D., 2011. Construction project administration. Pearson Higher Ed.

Gadde, L.E. and Dubois, A., 2010. Partnering in the construction industryProblems and opportunities. Journal
of Purchasing and Supply Management,16(4), pp.254-263.

KarimiAzari, A., Mousavi, N., Mousavi, S.F. and Hosseini, S., 2011. Risk assessment model selection in
construction industry. Expert Systems with Applications, 38(8), pp.9105-9111.

Knippers, J. and Speck, T., 2012. Design and construction principles in nature and architecture. Bioinspiration &
biomimetics, 7(1), p.015002.

Bhattacharya, A., Cheffi, W., & Dey, P. K. (2016). Recent advances in manufacturing operations management.
Journal of Manufacturing Technology Management, 27(1) doi:10.1108/JMTM-12-2015-0109

Brennan, L. L. (2011). McGraw-hill 36-hour course, operations management. New York: McGraw-Hill.

Chen, J., & Wang, W. (2011). target-operation cost management model. Paper presented at the , 204-210 10221025. doi:10.4028/www.scientific.net/AMR.204-210.1022

Collier, D. A., & Evans, J. R. (2014). OM: Operations management (5th ; student 5. ed.). South Melbourne, Vic:
Cengage Learning Australia.

Coughlan, P. (2014). Operations management

Dickinson, K. (2015). Financial markets operations management (1st ed.). Hoboken: Wiley.

Hill, A., & Hill, T. (2012). Operations management (3rd ed.). New York;Houndmills, Basingstoke, Hampshire;:
Palgrave Macmillan.

IncubateMass operation and management costs. (2014, ). Mena Report

Johnston, R., Clark, G., & Shulver, M. (2012). Service operations management: Improving service delivery (4th
ed.). Harlow, England: Pearson Education.

Meredith JR, & Shafer SM (2013). Operations Management for MBAs (5th). Hoboken, NJ, USA: Wiley. ISBN: 13
9781118369975.

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