Scm Delays Essays

Scm Delays Essays Scm Delays Essay Scm Delays Essay Delays during material purchase and supply are widespread in most projects around the world. Some of the delay happens at the time of purchasing of material for the project that is the period which is before the start of project as well as during actual execution of project is under way. Project schedules are consistently dynamic and uncertain. Several controllable and uncontrollable factors can adversely affect the project schedule and cause delays. These delays definitely create negative impacts on project performance.Schedule delay in the completion of a Construction projects may be a major difficulty for contractors leading to costly disputes and adverse relationships between project participants. The challenge is to measure the net impact of Supply chain delays accurately.. The method of schedule delay analysis technique should be acceptable to all participants through the project. Delays in the completion of projects are often unavoidable. The project schedule which is planned at the beginning of the project is prone to being changed for many times and unfortunately causes delays.As a result, schedule delays may be a major problem for contractors as well as the owners, resulting in costly disputes, controversial issues and adverse relationships between all the 3project participants. Therefore, the identification, quantification and analysis of delays become essential. Contractors are prone to see most of the delays in the responsibility of the owner, while owners usually want to put the blame on the contractor or third parties.Consequently, it is necessary to analyze schedule delays and research the most significant causes of delay in projects to avoid or minimize their adverse impacts on the project and project participants. These delays in purchasing and supply chain management may be due to various factors some of which are internal organizations and some are outside of organization. Internal factors such as delays from other departments, delays from c lient, delays in approvals, external factors include suppliers delays, transportation delays, and other factors may also affect such as act of god, government intervention etc.Analysis of these delays and the detail analysis of reason has to be done to measure the impact of each delays on the project. Delays Different type of delays that can be arise during actual procurement of material are stated as below 1. Import / Export duties clearances 2. Natural disaster. E. g. Cyclones, earthquakes, tsunami etc. 3. Manmade disaster. E. g. War, pirates etc. 4. Strike –Includes mainly labor disputes with management. 5. Quality –Poor quality of delivered materials a. By supplier. b. Damage to vital components during transportation. 6. Inaccurate forecast. a. Due to long lead time. b. Inflexibility at suppliers end. . Procurement of material from single source. 8. Receivable risk – Possibility of being unable to collect on receivables. 9. Inventory risk –Excessive i nventory hurts the financial performances. 10. Information infrastructure breakdown.. 11. Unexpected shutdown of key plant of supplier for certain period. 12. Government strike. 13. Change of design from client. 14. Design approval delays 15. Approval delays 16. Negotiation delays 17. Delays in issuance of transportation papers 18. Delays in submission of documents on site/ vendor. 19. Inspection delays 20. Delays in order follow up. 21. Delays in payment of supplier.