Laxmi Construction: Project Design Changes Rock Procurement Management
Sameer Gujar and Aradhana Gandhi
Symbiosis Institute of Business Management, Symbiosis International (Deemed University), Pune, India
Volume 16: 2022, pp. 77-94; ABSTRACT
The performance objective of operations management is to achieve high quality, with low cost, while delivering the products on time with more flexibility. This is particularly true in the execution of infrastructure projects, where design changes are inevitable within an allowable budget. The trade-off needs to be achieved between the flexibility and on time delivery. There are many factors which affect the on-time delivery, particularly when the design changes happen during the execution of an infrastructure project. These include the hierarchical structure of the organization, planning and procurement of raw materials, and risks involved in the design changes. This case narrates a situation where a client makes frequent design changes to the specifications approved during the tendering process for an infrastructure project which resulted in project delays and cost overruns. How can a company anticipate these challenges and act accordingly to ensure that the project runs smoothly?
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