12 Sep. 2006 BEECON 2006 1

Centre for Infrastructure and Construction Industry Development

The University of Hong Kong

EMPOWERING SMALLER CONSTRUCTION ENTERPRISES

Mohan Kumaraswamy 顧 茂 翰Christopher Miller

Motiar Rahman 莫提亚Thomas Ng 吳 兆 堂

Ekambaram Palaneeswaran Joseph Ugwu

12 Sep. 2006 BEECON 2006 2

Overview• Small & Medium Construction Enterprises (SCEs)

do most of the actual work, but receive least attention.

• SCEs have little time or resources • Most Industry initiatives target LCEs• Paper tells Tale of two Initiatives

(1) Top-down Three-party initiative - for SCEs in Wales

(2) Bottom-up broad-based initiative - for SMCs in Hong Kong (Presentation focuses on this project: called SMILE-SMC)

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SStrategic trategic MManagement with anagement with IInformation nformation LLeveraged everaged EExcellence xcellence (SMILE)(SMILE)

F O R

Small and Medium Contractors (SMCs)

SMILE- SMILE- SMC

SMILE-SMC

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Why SCEs (incldg. SMCs)?

• In UK – SMEs employ 62 % of workforce

• Value of sub-contrcated work can be 90% (even 100 %!)

• So Industry is at the mercy SCEs (and not just vice versa!)

• They contribute significantly to the ‘good, bad and ugly’ in industry!

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Large Nos. of SMCs

Group Employees range

No. of Establishments Cumulative %

A -D 1- 49 23,275 98.60

Also, A+B (1-9 employees) = 88.2%

E + F 50 – 199 280 99.79

G + H 200 – 399 40 99.96

I - W 400 & Above 10 100.00

TOTAL 23,605 100.00

Source: C&SD, HKSAR December 2003

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SMILE-SMC was funded by:SME Development Fund of Trade & Industry Dept.

and Faculties of Engineering & Architecture, HKU

and SUPPORTED by•17 Partner Contractors (PCs)•Other Collaborators & Supporters

– Assns. of ‘bigger’ and ‘smaller’ contractors in HK incldg. E&M assns. – Five overseas Universities/ R&D Centers

in Australia, Singapore and UK

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SMILE-SMC Main Objectives

• Identify information & knowledge gaps, co-ordination barriers, etc.

• Identify, consolidate and develop– good practices, critical success factors, appropriate

benchmarks etc.• Develop

– framework & innovative tools – SMC-friendly web-based ‘strategic information &

knowledge manager’ – to improve performance & increase competitiveness

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What was done

• Conducted relevant Research Investigations:– Pilot Needs Analysis with PCs– Questionnaire Survey in the industry– Workflow Analysis with PCs– Two focused surveys on

• Process Improvement & Information Library• Discussed, consolidated and refined

– Information and ideas– at regular full Team Meetings

• Formulated the SMILE-SMC System and collected feedback from - five Workshops- partners & supporters- overseas advisors- other seminars & fora

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Web-Based Interface

Computer

Clients

Main ContractorsSubcontractors

Others

Trade Contractors

SMILE-SMC Users

Suppliers

Potential Users and Uses of SMILE-SMC System

SMILE-SMC Uses

‘ Wanted’ zone ‘ Available’ zone

Performance improvement

Discussion Forum Information Library

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Some Open-to-All benefits• Search business partners from among SMILE-

SMC members• Browse News & Events

– News Alert, e-Bulletin, etc.• Some Downloads • Self-Learning Package • Search

– within SMILE-SMC and the Internet• Browse Wanted & Available Zones

– to obtain and market resources• Browse Information Library – general parts

– Present and up-coming tenders– Recently awarded contracts– One-stop source of other useful information

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Some Membership benefits (1)

• Publicize company information & track record highlights in Member Zone– to attract potential business partners

• Own up to five user accounts– to access specific services for members

• Advertise/ post messages in Wanted & Available Zones, to obtain and marketResources, and initiate business Partnerships

• Participate in Discussion Forum– to voice out your concerns – exchange/ share views and ideas

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Some Membership benefits (2)

• Access to special information developed by SMILE-SMC Team– SMC-friendly formats on ‘how to apply for excavation permits’ ‘reporting accidents’: Flowcharts, Pointers, etc.– Consolidated information on Demolition, MPF, Noise Permit, Insurance, Contractor Registration, etc.SPECIAL DOWNLOADS - for above and following:

• Valuable services for Performance Improvement–Strategic Knowledge Management–Electronic Information Exchange–Benchmarking

• Target … … ???

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GREATER PRICECOMPETITION

Internalimprovements

mutualimprovements

LESS WORKOPPORTUNITIES

Parent/JV/subsidarycompany

Othercompanies

on sameprojects

Subcontractors Suppliers

mutualimprovements

IMPROVED INFORMATION &KNOWLEDGE MANAGEMENT

DEVELOPMENTAND GROWTH

INTEGRATED DEVELOPMENT THROUGH SMILE-SMC

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Membership & Services: Availability

• SMILE-SMC was launched on 01 March 2006– trial run & free usage for 10 months i.e. to 31 Dec. ‘06– through initial ‘trial membership’

• Initial ‘trial membership’:– FREE and All are welcome– See http://smile.hku.hk/

• Some services will not be available during ‘trial membership’ period– But will be available to ‘full’ members later

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The Welsh Connection• Identifies need for ‘Innovations’ and their diffusion for

SCE improvements• Innovation take-up depends on Supply Chain

relationships between LCEs and SCEs• ‘Technology Transfer Networks’ are best to learn from

each other, exchange experiences & diffuse technology• Recommends to set up an Organisation to be a ‘project

knowledge broker’ to drive innovation through industry• Uni. of Glamorgan – Conceptual Framework for

Innovation Management in Welsh SCEs- (a) Umbrella body with Govt., Research Instns. and Industry (b) Education & Training (c) Fora & Conduits (Networks & ‘Knowledge brokers’) as above

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For more on SMILE-SMC: see http://smile.hku.hk/ or email: smilesmc@hku.hk

Centre for Infrastructure and Construction Industry Development

HKU CIVIL ENGRG. DEPT.

CONCLUSION: Useful to combine the ‘Top-down’ approach in Wales with the ‘Bottom-up’ approaches in Hong Kong

For more info. on the Welsh initiative, email: Dr. Chris Miller at cjmiller@glam.ac.uk