Improvement of business processes management in a construction holding company

Peculiarities of business processes in construction sector

Construction sector is a separate and independent area of economy which is used for putting into operation new construction facilities as well as enhancement, reconstruction and technical re-equipment of existing production and non-production facilities.

This sphere of economy has several peculiarities not depending on types of facilities which are under construction. They are:

  • Variability, temporary and diverse nature of construction production and the type of final products;
  • Technological interconnection of all procedures included in construction process;
  • Irregularity of correlation between construction works according to their complexity and their types during a month;
  • Participation of various organizations in production;
  • The role of a climate and local conditions in construction;

These factors can lead to:

  • Low labor productivity
  • A high degree of wear of basic funds
  • Imperfection of organizational management
  • Significant number of contracting organizations leading to difficulties in construction works coordination

Analysis of business processes in companies of construction sector

The structure of interior business processes of a company is defined by the most important kinds of its functioning in order to achieve aims of customers and investors. This kind of companies has a number of standard business processes with a quite unified scheme of their realization. A typical business process of a company can include the following business processes:

  • Pre-production
  • Basic production
  • Auxiliary production
  • Inventory and logistics management
  • Marketing
  • Sales and maintenance service
  • Finances
  • Accounting
  • Human resource provision
  • Transportation provision
  • Energy provision
  • Maintenance provision
  • Metrological provision
  • Construction
  • Social provision
  • General business activity
  • Information provision
  • Management

Business process optimization methodology

Business process optimization of integrated holding structures consists of five steps.

Business processes which need to be improved are detected according the following criteria:

  • Business process importance
  • Existence of problems in a business process
  • Possibility and costs of business process optimization
  • Cyclicality of business processes at all levels of business

Construction sector is one of the most important sectors of national economy. The methodology of business process optimization described above has a positive effect on the development of key structures of the sector.

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