A decision support model for construction cash flow management

The excessive level of construction business failures and their association with financial difficulties has placed financial management in the forefront of many business imperatives. This has highlighted the importance of cash flow forecasting and management that has given rise to the development of several forecasting models. The traditional approach to the use of project financial models has been largely a project-oriented perspective. However, the dominating role of “project economics” in shaping “corporate economics” tends to place the corporate strategy at the mercy of the projects. This article approaches the concept of cash flow forecasting and management from a fresh perspective. Here, the use of forecasting models is extended beyond their traditional role as a guideline for monitoring and control of progress. They are regarded as tools for driving the project in the direction of corporate goals. The work is based on the premise that the main parties could negotiate the terms and attempt to complement their priorities. As part of this approach, a model is proposed for forecasting and management of project cash flow. The mathematical component of the model integrates three modules: an exponential and two fourth-degree polynomials. The model generates a forecast by potentially combining the outcome of data analysis with the experience and knowledge of the forecaster/organization. In light of corporate objectives, the generated forecast is then manipulated and replaced by a range of favorable but realistic cash flow profiles. Finally, through a negotiation with other parties, a compromised favorable cash flow is achieved. This article will describe the novel way the model is used as a decision support tool. Although the structure of the model and its mathematical components are described in detail, the data processing and analysis parts are briefly described and referenced accordingly. The viability of the model and the approach are demonstrated by means of a scenario

Enhanced project brief: Structured approach to client-designer interface

© Emerald Group Publishing Limited. Purpose - The focus of this work is on the client-designer interface where decisions have significant impact over the lifecycle of the project. Therefore, the briefing stage is examined in the context of clients needs which is divided into project-based strategy and broader clients strategy. The purpose of this paper is to address the pitfalls in the briefing process which has been attributed to the shortcomings in the client-designer communication interfaces. This will be achieved by developing an automated brief generation framework. The research examines the efficiency of standard approaches to modelling and design, and the benefits that these methodologies have offered to the computer industry. The work reviews the similarities between the two industries and argues in support of the potential benefits in adopting a standard methodology in the construction industry. The structure upon which the framework is developed is based on system analysis and design methodology (SSADM) which has proven to be an effective platform used within the software development industry. Design/methodology/approach - SSADM is an established methodology within the software development industry. The paper will demonstrate that due to fundamental similarities between the construction and software development industries, SSADM is likely to offer a viable platform upon which an automated enhanced brief generation model is developed for use in the construction industry. The construction design and construction process will be mapped on SSADM high-level definition before focusing and honing on the design phase. The methodology for the development of the framework will be based on the rationalist approach of generating knowledge through reasoning leading to model-building. Findings - A model that is based on SSADM is proposed for the design development phase of construction projects. In order to shape the project strategy, the model considers the combined role of clients requirements with organisation strategy and environmental factors. The paper has shown that it is feasible to increase the automation of the briefing process and enhanced the briefing output. The model here does not diminish the importance of direct communication between the client and the design team. It provides a more structured way of doing so, while taking advantage of vast array of data and technology in order to improve the brief outcome. Research limitations/implications - From practical perspective, the proposed framework is in its formative stage, thus requiring incremental refinement through several case studies. This is particularly true about the AI components of the system which typically rely on extensive data representing the real-case scenarios. Therefore, the work invites further research into the examination of various parts as well as the overall system. Practical implications - There are several ways by which construction projects are procured. There may be fluctuation in their rate of usage, but while there is no indication of any procurement option fading, new ones such as PPP and PFI are periodically introduced. The existence of this diversity is indicative of the fact that the industry tends to respond to problems rather than attempting to instigate a measured solution supported by theoretical underpinning. Subsequently, there have been suggestions of a communication and information discourse between actors and within processes involved in project lifecycle. This project is aimed at addressing the gap in the client-designer communication. The automated approach to brief generation will lead to better briefs while reducing ambiguities as well as the overhead associated with brief generation. Social implications - The quality of project brief has a significant impact on decisions at the design stage. In turn, these decisions will influence all phases of construction project lifecycle. The briefing session and requirement analysis of a construction project can be very difficult for inexperienced clients particularly for complex projects. Therefore, there is potential for the process of client-requirement-analysis to be optimised. The work promises to improve the quality of the briefing process, thus helping clients to realise their intended objectives and minimise resource waste. Originality/value - The work builds on the commonalities of the construction and software development industries and takes advantage of the advancements in the latter. In doing so, project quality is defined quantitatively which is used to develop project strategy in a three-dimensional space. The development of the model was also contingent upon enhancement of artificial neural network structure

Towards developing an industry led educational framework using LEAN approach

The poor performance and inefficient manner in which the construction industry operates has been recognised through a variety of combined government and industry initiatives over the years. A major challenge towards improvement is recognised as lying with education and industry stakeholders actively creating closer and more effective relationships to facilitate a greater mutual understanding. The application of Information Technology (IT) systems can well enhance ‘Lean’ initiatives through improving process flow, reduction of the non-added value activities, better meet customers’ requirements and adding value which will increase the performance of the industry. This paper presents a project that is focused on developing an industry led framework for educational training programmes. The outcomes of two workshops organised with the industry that have resulted in a Continued Professional Development (CPD) training framework comprising of three distinct levels in terms of strategic, operational and technology aspects of that particular key area are discussed. The essence of this work is based on adopting the ‘Lean’ approach and adding value by identifying the IT skills gaps recognised ‘by the industry’ ‘for the industry’ and addressing them in developing training programmes

How to Form the Knowledge that Marketers Need? An Approach for Marketers to SMEs

International audienceTraditionally, the formula for knowledge consists of belief and truth. The key challenge behind this is to understand how a marketer can benefit from this knowledge. Like the traditional Chinese saying, the reason a ship floats or sinks is the same, it is because of water. Similarly, the success or failure of a marketing campaign depends on knowledge. For a marketer, useful knowledge is the combination between the truth and the customer " s belief

Optimization of wall components for encapsulation of Nigella sativa seed oil by freeze-drying

The aim of the present study was to determine the proper concentrations of whey protein isolate (WPI), Arabic gum (AG), and Zedo gum (ZG) for the encapsulation of Nigella sativa seed oil (NSO). WPI, AG, and ZG were used as wall materials for the encapsulation of NSO by mixture design and then the optimum sample with minimum Z-average, PDI, and a* and maximum zeta potential, conductivity, encapsulation efficiency, and b* was selected for examining FT-IR and SEM. The findings demonstrated that lower particle size and particle dispersion index were obtained at higher amounts of AG and WPI with the least a*. Desirability function results indicate that the mixture of 39.05% WPI, 16.758% AG, and 4.192% ZG led to the production of the optimum sample. Microencapsulation of Nigella sativa seed oil using the optimum wall composition was recognized to be useful to preserve bioactive compounds and provide flavor stability, enabling the use of microcapsules in food formulations