PowerPoint Presentation

wbs_floating-logo. Masters Programmes Group Work Assignment Cover Sheet.

Operations Management. Group 15 Company selected: JLL pvt. Ltd. (Real estate consultancy) Process: Upgradation of old buildings to achieve sustainability objectives.

Contents. Introduction Methodology of analysis Topic selection brief 4 Vs and Operational Priorities Process Mapping Identification and analysis of Operational Challenges Recommendations.

ill. Introduction.

[Audio] The organization that we selected for our analysis is JLL- Jones lang Lasalle pvt ltd. It is a real estate consultancy and investment management firm. A firm which has been featuring in Fortune 500 for a decade now. JLL as one of the top International property consultant provides consultancy services all along an assest life cycle, right from leasing , capital investment, Advisory on workplace strategy, valuation , Project and development services and property management. The sustainability objective of this firm is to achieve net zero emissions by 2040 through the elimination of carbon emissions across its operations. Project & Development Services and Facility / Property Management services are most instrumental functions of the organization to achieve its sustainability goals, as they make the core operation of the company and hence are chosen for the analysis..

[Audio] When it comes to achieving net zero emission across all the building where JLL operates, this not only includes new building but also the upgradation of old existing buildings. In our analysis we are considering the Mumbai Indian market. Mumbai posses 42% of the upgradation potential of buildings, which means if these buildings are modified to more sustainable buildings the carbon foot print can reach huge reductions. In Mumbai, the upgradation of buildings has two major functions involved: Project and development services and property asset management. The process snapshot captures the synergies of these two functions, with interconnections of role & responsibilities, when upgrading a building. Due to this interlinkages of the delivery model, we are considering both functions in our analysis..

[Audio] To provide a better understanding of what we mean with upgrading a building, we are providing here a few examples. For instance, improving light fittings and lifecycle of lightbulbs to reduce electricity consumption; improving ventilation and air conditioning; using sensor to detect functional or structural anomalies; implementing a waste management strategy for recycling..

[Audio] The methodology adopted for this presentation is –* explain the slide briefly.

Analysis.

[Audio] We start our analysis with the 4Vs framework. In this project this is helpful to understand the workings of an upgradation process in its operating context. Volume of activity is high, very capital intensive. ...that per-se adds on the volume of activities. Variety in the offering is relatively low, as the upgradation follows pre-defined processes with standardized regulations and procedures put in place Variation in demand is also low and fairly predictable. This is because JLL is one of the major players in the market and has large databases containing extensive market analyses on real estate, giving the company a vantage point to understand market dynamics. Visibility is very high. Timelines for upgradations are communicated to clients at the onset of the project. Indeed, clients decide the level of intervention needed and they are constantly informed about each step of the upgradation process..

[Audio] In conjunction with 4 Vs analysis, we examined Operational priorities for JLL as they directly affect customer satisfaction and market positioning. The current operational priorities for JLL are Cost which is high- since it is a cost-intensive and budget-driven process. Speed is intermediate as the schedule is defined and agreed at the beginning and has to be adhered to and contracts ensure this adherence. The quality specification is also high – industry standards, regulatory guidelines, and the degree of sustainability, define specifications. Quality conformance is intermediate as it is believed the delivery modal ensures it in the current system. Dependability is high- another priority that is taken seriously through contractual liabilities. Flexibility in delivery is low, and ad hoc changes are difficult to adjust once the planning phase is over. This analysis reveals the cost or profitability to JLL is highly dependent on resources and speed to completion. also indicates an imperative need to shift from low to high flexibility and scope of enhancement in quality conformance. Hence process mapping seems like a nature next step to further investigate into these parameters at each phase of overall process..

[Audio] Here we explain the process and modality currently used by JLL in India. We assumed a 1 lac sqft building under upgradation in Mumbai to quantify work and time. It will be helpful to pause and read to absorb the content and nuances of the process more comprehensively. To scrutinize issues more granularly, we have explicitly noted the resources deployment of involved teams and tentative timelines and activities in each phase. Broadly describing, the process is divided into 7 phases. Out of which initial 5 phases are steered predominantly by Project management team and last 2 phases are steered by property management team. •Once the project is won- In Initiation phase objectives are understood , relevant data is gathered and preliminary feasibility analysis or due diligence is conducted. Second phase is planning ,here the data and information are more intently synthesized , foreseeable risks are identified, strategic plans and mitigations plans are devised. Under ideal scenario, prop management team should be involved in Initiation and planning as they serve as the main groundwork to develop the charter and dictate design, execution and maintenance. Design phase translates and combines the plans into a more tangible, multidimensional world. Then comes the procurement, followed by the construction and close phase. There onwards transition from projects to operations take place. Operation and maintenance mark the advent of go-live or occupied space. Planning, design, operation, & maintenance directly impact sustainability objectives; the remaining phases are ancillary..

Maze. Challenges.

[Audio] The process mapping helped us identified the bottlenecks these are classified under- delays or inefficient time scheduling, over burdening , process rigidity and quality and adverse impact on sustai PMT is responsible for all the stakeholders, robust documentation and internal alignment this causes over burdening of one team ,uneven accountability and responsibility distribution. Too much reliance on existing data which could either be outdated or inaccurate. Non preemptive risk identification - A lot of discrepancies are identified later stage not reflecting in the existing data. the project management team lacks tools to evaluate gaps between current construction and relevant archival data. As a result, many issues are discovered the during construction, this adversely affect the design time and quality, since they require a fair amount of rework or worse, may affect the original plan Rework of design can dilute quality and sustainability aims. Ambiguous allocation between Capex and Opex due to a lot of overlapping scope in terms of procurement and execution. Threat on overall project from changes in Regulations and guidelines, especially if this occur during or after construction. In the transition phase PMT and Prop are equally responsible however accountability is assigned on PMT. This creates power and process imbalance. Similarly if sustainability objectives associated with operations and maintenance are not considered in the planning and design ,meaning appropriate infastructure is not provided for operation and maintenece phase. Prop management team resorts for stop gap arrangements. This dilutes the quality and objectives both..

[Audio] This slide discusses the operational challenges that were observed by us or expressed by the resources we interviewed, which could not be mapped on process flow. First, the delivery model is largely sequential and lacks effective time scheduling. another one subject matter expertise on sustainability is confined to one department, and the resources are only partially utilized and since the revenue steams are separated, it is preferred so to reduce the profit sharing. Such a structure increases the coordination burden on the project management team and compromises quality specifications and conformance. third the project management team struggles to collect archival data and the authenticity of the documents.. Lastly, Inadequate construction waste management or debris management during construction has direct impact on sustainability goals..

[Audio] Our analysis of the operational challenges summarized in the previous slide led us to use the performance/ importance matrix to gain a deeper understanding of how these challenges would impact the operational performance objectives. This detail inquiry revealed four objectives that require improvement. 1) Quality conformance; though quality specifications are dictated by design and planning and are finalized during initial phases itself; conformance spreads all through the building life cycle to ensure the specifications are met and maintained 2) Speed -that gets impacted by reworking, which is often the result of gaps appearing during construction and sequential delivery; and 3) Cost and flexibility are defined based on quantum of work , scope delineation, unforeseeable changes like statutory regulations or client's demand. This serves as the foundation of our recommendations..

Many question marks on black background. Recommendations.

[Audio] We recommend technology intervention for tackling time, resource , and quality criticalities. Smart technologies, cloud-based infrastructure, building scanners, sensors, and predictive IOT platforms and AI etc to name a few will help accelerate the process, identify gaps and risk more prudently, and optimize solution design . We recommend a product-plus-services approach another words mix of standardization and customization For example, a menu of services can be created for clients to choose from, such as layouts, look and feel templates, ergonomic furniture, type of sensors, etc. This will expedite the timeline by initiating some procurement prior to design completion and impart flexbility. A quantitative man-hour matrix based on each team's required accountability and responsibility be made and implemented to tackle resource overburdening. Key performance indicators must be defined to motivate resources and infuse healthy competition. To fill the immediate need for expertise Hiring new SMEs from outside can be a reasonable solution in the short term but. In the long run, training in-house resources and upskilling them would prove more valuable. Debris management should be approached systematically, utilizing circular economy concepts like repurposing and recycling waste. Appointment of SME throughout the process, using internal and competitive benchmarks will ensure better quality specifications and conformance. We would like to conclude here by acknowledging the limitation few of the recommendations have like technology intervention and hiring SMEs can prove to be costlier in the short run. Training people is an organic time consuming process. The rest of the recommendations are easy to implement. With this we wrap our presentation here. Thank you..

References. Armistead, C., and Machin, S. (1997), “Implications of business process management for operations management”, International Journal of Operations & Production Management , Vol. 17 No. 9, pp. 886-898. Bateman, N., and David, A. (2002), “Process improvement programmes: a model for assessing sustainability”, International Journal of Operations & Production Management , Vol. 22 No. 5, pp. 515-526. JLL research report -Futureproofing 2.0 -Upgrading commercial assets to create lasting value Dated March 2020. JLL Article -7 Ways to retrofit buildings for energy efficiency. Love, P.,E., Smith, J., Ackerman, F., Irani, Z., and Teo, P. (2018), “The costs of rework: insights from construction and opportunities for learning”, Production Planning & Control , Vol.29, No.3. Ponsignon , F., Smart, P., A., and Maull, R., S. (2011), “Service delivery system design: characteristics and contingencies”, International Journal of Operations & Production Management , Vol. 31 No. 3, pp. 324-349. Silvestro, R. (1999), “ Positioning services along the volume‐variety diagonal: The contingencies of service design, control and improvement”, International Journal of Operations & Production Management , Vol. 19 No. 4, pp. 399-421..

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