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Professor. Dr.-Eng. Shizhao DING

Analyzing of Japanese Construction Industry from the Viewpoint of International Desk of Construction. Professor. Dr.-Eng. Shizhao DING. Research Institute of Project Administration and Management Tongji University, Shanghai Aug. 27 1999, Kochi. 1. Introduction

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Professor. Dr.-Eng. Shizhao DING

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  1. Analyzing of Japanese Construction Industry from the Viewpoint of International Desk of Construction Professor. Dr.-Eng. Shizhao DING Research Institute of Project Administration and Management Tongji University, Shanghai Aug. 27 1999, Kochi

  2. 1. Introduction 2. The Change of International Construction Industry 3. Reviewing of Japanese Construction Industry System 4. Suggestions to Add Value to Japanese Construction Production Process

  3. 1. Introduction 1.1 Background of the Reviewing 1.2 General Impression to Japanese Construction Industry

  4. 1.1 Background of the Reviewing • Project information of Japanese contractors in China • As guest professor in Nagoya University from July 1998 to January 1999 • Investigation and interviews (government body and firms ) in Tokyo in January 1999 • As member of delegation of Chinese Ministry of Construction visited Japanese Ministry and contractors in June 1999

  5. Japanese manufacturing industry Construction industry big difference 1.2 General Impression to Japanese Construction Industry the role in the international market

  6. General Impression (2) MANAGEMENT TECHNOLOGY MANAGEMENT TECHNOLOGY Conservative in management field Active in technical field

  7. General Impression (3) exchange with another countries TOO FEW in the field of construction management

  8. General Impression (4) Prefer keeping traditional instrument and procedure Do not pay enough attention to international innovation in construction industry

  9. 2. The Change of International Construction Industry 2.1 Globalization of Construction Industry. 2.2 Tomorrow‘s Company in a World of Hyper Competition 2.3 Private Finance Initiatives for Property and Construction Investment around the World 2.4 The Forefront of Change - Client’s Change 2.5 Innovation of Technology and Management 2.6 Managing in a Wired World 2.7 The Management of Change in an Organization and the Role of Technology 2.8 The Value Adds Services - Management of Process/Pre- Construction Services

  10. What are the ‘ hot issues’ affecting construction around the globe ? Taking the pulse of the global construction industry , will it survive in its present form?

  11. Organizer : The Reading Construction Forum The University of Reading • Oxford, Pembroke College • 24-25 September,1997 • Participants : 30, come from UK, USA, China, Australia, South Africa, Sweden. 7 counties more change in 5 years than in previous 50 years ADDING VALUE TO DESIGN AND CONSTRUCTION

  12. REGULATIONS INVESTMENT DESIGN CONSTRUCTION MANAGEMNT CONSULTANT SUPPLIER 2.1 Globalization of Construction Industry. INTERNATIONAL CONSTRUCTION MARKET

  13. 2.2 Tomorrow‘s Company in a World of Hyper Competition (1)What is happening in the world to property and construction? (2)What are the drivers of change and how the leading companies embracing change in the market place? (3)Where are the growing construction market in the world? (4)Taking the pulse of the global construction industry , will it survive in its present form?

  14. P F I 2.3 Private Finance Initiatives for Property and Construction Investment around the World reduces public sector borrowing promotes efficiency reduces bureaucracy PFI project : Infrastructure, hospital

  15. Good quality Low cost Short duration Everybody wants the construction industry to change and client have been at the forefront of change 2.4 The Forefront of Change- Client’s Change Providing end product, like manufacturing industry Transparent production process New project delivery : CM, Partnering, Integrated Management

  16. keep on leading edge New product, new services 2.5Innovation of Technology and Management Technology development strategy Europe IT-project control system Continuous improvement program Turnkey, partnering, DDC(develop+design+construction) ... Document Management System in construction company Train, retrain, train again

  17. 2.6 Managing in a Wired World • What are the new business opportunities being created by information technology and computers? • The way in which information is managed in an organization is fast becoming new tools of competition • What is the progress of the construction industry in the world? Is there hope for the digitally deprived and the digital homeless?

  18. 2.7 The Management of Change in an Organization and the Role of Technology • What are the key drivers of change? • How can the construction industry adapt to change? • What is the strategy for managing change?

  19. 2.8 The Value Adds Services - Management of Process/Pre- Construction Services • Providing service not only for management of construction process, but also for management of production process • Providing service not only for management of implementation phase , but also for management of pre construction phase

  20. 3. Reviewing of Japanese Construction Industry System 3.1 The perspectiveand Principle of Reviewing 3.2 Reviewing of the Organization System of Japanese Construction Industry 3.3 Reviewing of the Mechanism of Japanese Construction Market 3.4.Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry

  21. 3.1 The perspectiveand Principle of Reviewing (1) Law System Organization System Mechanism Design Construction Japanese Construction Industry Supply Technology Management Economics INTERNATIONAL DESK OF CONSTRUCTION

  22. System of Japanese Construction Industry The perspectiveand Principle of Reviewing (2) Owner is satisfied Benefit to development of national economy ? Benefit continual development of construction industry Benefit to designer and contractor

  23. 3.2 Reviewing of the Organization System of Japanese Construction Industry (1) Government Bodies Research institute Professional institute University Construction Industry Designer Supplier Management consultant Contractor

  24. Technique Management Pay attention for the lecture of Project Management and Construction Economics Practical experience for project management of academic staffs Reviewing of the Organization System of Japanese Construction Industry (2) Few/no BS course for Construction Management University

  25. In UK - CIOB In USA - AIC In Australia - AIOB International association - IAPMC In Japan Reviewing of the Organization System of Japanese Construction Industry (3) The qualification of professional management of construction is very important Professional institute

  26. Scope of work : providing management service in project implementation phase ? Reviewing of the Organization System of Japanese Construction Industry (4) Designer

  27. Reviewing of the Organization System of Japanese Construction Industry (5) New contract forms : CM Partnering Full service : Program Management D+D+B+FM Providing Management service of process, not only of civil job Contractor

  28. Forms of tender Types of contract Supply of professional management consultant 3.3 Reviewing of the Mechanism of Japanese Construction Market (1) Mechanism of construction market

  29. Open bid in western countries government project not identicall Limited competition Reviewing of the Mechanism of Japanese Construction Market (2) Forms of tender/bid

  30. Types of contract Familiar with General contract Lump Sum Unit Price In European Turnkey - design and build Lump Sum Not base on functional description Unit Price Familiar with the innovation of project delivery Reviewing of the Mechanism of Japanese Construction Market (3) In Germany: since 1971 functional description CM in Japan is not identical with CM in USA

  31. Low Government bodies Private sector Oversee market Reviewing of the Mechanism of Japanese Construction Market (4) Supply of professional management consultant

  32. Finance (+) Facility(+) Asia Construction Market 3.4.Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry (1) Japanese Construction Industry Management Personal cost (-) Design(+ Civil Eng.) Material Construction(+ Civil Eng.)

  33. Finance PFI Project Advantage Design and construction for large scare and complicated project Technology Construction Machine and tools Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry (2)

  34. Problem/disadvantage Comparison with American and European countries Design and construction of building Personal cost Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry (3) Management technique Few chance Influence on the opportunity to get job of design, construction and management consultant

  35. 4. Suggestions to Add Value to Japanese Construction Production Process 4.1 Look at the Innovation’s Tendency of International Construction Production Process 4.2 Promote Integrated Construction Production 4.3 Promote of Integrated Management for Construction Production 4.4 Promote Management Consulting Service

  36. 4.1 Look at the Innovation’s Tendency of International Construction Production Process ORGANIZATION MANAGEMENT ECONOMICS TECHNOLOGY INTERNATIONAL DESK OF CONSTRUCTION Innovation’s Tendency

  37. Virtual organization Virtual construction Change of Scope of work of construction firms Organization of information communication Look at the Innovation’s Tendency of International Construction Production Process (2) ORGANIZATION

  38. Project Controlling Program Management Integrated Management Look at the Innovation’s Tendency of International Construction Production Process (3) MANAGEMENT

  39. Look at the Innovation’s Tendency of International Construction Production Process (4) ECONONICS P F I

  40. I T I C Look at the Innovation’s Tendency of International Construction Production Process (5) TECHNOLOGY

  41. 4.2 Promote Integrated Construction Production DESIGN +BUILD DEVELOPMENT MANAGEMENT + DESIGN + BUILD DESIGN + BUILD + FACILITY MANAGEMENT DEVELOPMENT MANAGEMENT + DESIGN + BUILD + FM FINANCE + DEVELOPMENT + DESIGN + BUILD + FACILITY MANAGEMENT

  42. DM D + B F FM

  43. DEVELOPMENT MANAGEMENT + PROJECT MANAGEMENT + FACILITY MANAGEMENT 4.3 Promote of Integrated Management for Construction Production Lifecycle management

  44. Investor Developer Designer Contractor Supplier Adding Value to Design and construction 4.4 Promote Management Consulting Service Management Consulting Service

  45. Thanks for your attention

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