The construction industry needs to adopt some best practices from the manufacturing industry (i.e. Toyota Way Principles) where Just-In-Time is being practiced for inventory management says Sharique Khan, Project Manager, Turner India.

What will be the new state of affair after 2020 for the construction and infrastructure sector?
For 2021, the construction and infrastructure sector looks promising and is expected to perform better than 2020 as several government funded projects are in the pipeline while some are ongoing. The third quarter of 2020 has shown good sign of improvement as well since several infrastructure and construction projects have started. As the government has plans to double the investment in infrastructure sector to about Rs 100 lakh crores over the next five years, the construction companies are likely to witness significant opportunities in key segment including highways, railways, ports, urban infrastructure, etc. During the pandemic, we have seen the emergence of many opportunities; there is a significant demand for healthcare facilities and internet usage, which has opened up avenues for the developers and investors to start constructing data centers and healthcare infrastructure facilities.

Given the financial constraints, what will be an appropriate partnership model for delivery and funding of infrastructure projects?
Infrastructure plays a very important role in a country’s economic development and growth, but it involves high costs and large investments. Amid this pandemic situation, the infrastructure projects will be financed through infrastructure bonds, public private partnerships and international investors. We have seen that the BOT (Build –operate – transfer) model has been successful in the transport sector having boosted our economic growth in last decade. This model has reduced financial burden on the government and in return helped in the development of infrastructure projects; similar initiatives will be required in other infrastructure sectors in the future.

What kind of infrastructure upgrade initiatives should the government focus on to ensure the construction sector remains in robust health?
To have sustainable development in the country, the government should make significant investments in the infrastructure sector primarily the highways, urban transport and renewable energy. Construction industry seeks immediate release of pending payments; the government and lenders can help provide the much needed liquidity to the cash-starved entities failing which the performance of the companies can come under pressure in the near future. The most anticipated aid from the government for the construction industry is that of increase in cash-flow and liquid capital along with other financial support initiatives and subsidies. This is very closely followed by the demand for ‘trains and other transportation facilities’ to enable ease of movement for the workforce, and reduction in GST and other applicable taxes and duties.

How will the pandemic catalyse the adoption of VR/AR tools, remote monitoring, data analytics to have a realtime view of ongoing projects?
The construction industry needs effective processes and tools to reinvigorate construction methodologies and productivity. The industry has been practicing decade old processes and practices. This pandemic has shown the industry a path towards process development, remote working, remote progress monitoring, lean practices and VR/AR etc.

Rework is the most commonly known waste on construction projects. We spend several man hours in rectification/ correction works due to poor design coordination. Use of BIM and AR/VR enables us to visualize our work prior to starting it and this helps us in early clash detection. Use of AI and Data analytics can establish real time view of ongoing projects through application of software and tools.

We have been implementing lean practices in our projects and these help us to plan and monitor construction activities on our projects. Slowly but surely, the industry is realizing the benefits of lean and its effectiveness in increasing production/efficiency. Lean practices help us in reducing wastes from processes. The most commonly used lean practices are last planner system, 5s, 8 wastes, Kanban, Gemba walks etc.

What kind of digital roadmap should be designed to help in overcoming operational challenges while also delivering competitive advantage?
The industry might have been slow to realize the impact of digital technology but digital transformation is the need of the hour to improve performance, quality and efficiency. However, the digital transformation needs a top down approach as it entails a significant cost. Presently, several tools, software, and apps are available for the construction industry which have proven to be very helpful in design review/ coordination, AI/VR/inspections, installations, commissioning, document management, PMCS, BIM, progress monitoring, 3D printing etc.

Industry leaders must adopt the change that digital technology brings for a better present and future. Professionals must select a process and do value stream mapping, find non-value added tasks and analyze improvement opportunities for digitalization, select right tool to implement, do periodic PDCA to observe improvement and do adjustments, and thereafter, slowly increase implementations.

What kind of transformation do you expect to see in the pattern of procurement in the post Covid era for equipment and structure solutions for projects?
Post Covid, the customers’ expectations are going to change pertaining to project timeline, project monitoring/ control, construction methodologies and procurement strategies. To meet post-Covid customers’ expectations, we need to be equipped with right tools and capabilities. Right construction equipment will play an important role in increasing productivity, efficiency and reduction of wastes (non-value added tasks.). Due to the revised and more stringent timelines from customers, we have been observing an increase in the use of PEB structures and modular construction methodology which can help us in building large and multilevel construction projects within reduced timelines. The modular construction also involves a lot of pre-fabrication works at workshops/factories which helps us in Just-In-Time (JIT) manufacturing and delivery on the projects.

We need to change the pattern of procurement and reduce on-site inventory; most of the construction companies deliver and store materials for years at the site which reduces the equipment’s life, warranty, guarantees etc. Due to this, sometimes the construction companies have to provide AMC on their own to cover equipment’s life during defect liability period etc.

The construction industry needs to adopt some best practices from the manufacturing industry (i.e. Toyota Way Principles) where Just-In-Time is being practiced for inventory management. Similar practice is being followed in the western world for the construction sector where materials are being delivered at site when it is required and placed/installed immediately at its designated place.