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17 DECEMBER 2008 TOWARDS EFFICIENCY – THE UEM BUILDERS’ EXPERIENCE Dr. Michael KING Sr. 17 DECEMBER 2008 TOWARDS EFFICIENCY – THE UEM BUILDERS’ EXPERIENCE Dr. Michael KING Sr. GM – Technical & Engineering Support UEM BUILDERS BHD

UEM BUILDERS BHD An Introduction to Expressways Engineering Services & Construction Manufacturing & Logistics UEM BUILDERS BHD An Introduction to Expressways Engineering Services & Construction Manufacturing & Logistics Healthcare Environment Property ICT

UEM BUILDERS BHD UEM GROUP BERHAD UEM BUILDERS BHD UEM GROUP BERHAD

UEM BUILDERS BHD UEM WORLD BERHAD UEM BUILDERS BHD UEM WORLD BERHAD

UEM BUILDERS BERHAD Operating Business Units Investment 33% Costain Group PLC Toll Operation Engineering UEM BUILDERS BERHAD Operating Business Units Investment 33% Costain Group PLC Toll Operation Engineering & Construction 100% UEM BUILDERS BHD 100% PATI Sdn Bhd 100% Intria Bina Sdn Bhd UEM Construction Sdn Bhd Penang Bridge Sdn Bhd 100% UE Development India Pvt Ltd Infrastructure Maintenance PROPEL Berhad 100% Soil Centralab Sdn Bhd

EFFICIENCY • EFFICIENCY • "Efficiency is doing better what is already being done. " – Peter F. Drucker UEM BUILDERS BHD • Efficiency ↑ = Productivity ↑ • 3 Phases of Project Delivery: – Pre-Contract – Project Execution – Post-Contract

PROJECT DELIVERY UEM BUILDERS BHD 1 PRE-CONTRACT METHODS COMMUNICATIONS APPROVALS 2 DURING PROCESSES CONSTRUCTION PROJECT DELIVERY UEM BUILDERS BHD 1 PRE-CONTRACT METHODS COMMUNICATIONS APPROVALS 2 DURING PROCESSES CONSTRUCTION BAROMETER BENCHMARKING 3 POST-MORTEM CONTRACT KNOWLEDGE SHARING ARCHIVING / KM RESEARCH & DEVELOPMENT PHASE

UEM BUILDERS BHD ATTENTION PLEASE Kindly ensure that your mobile phones are switched “OFF” UEM BUILDERS BHD ATTENTION PLEASE Kindly ensure that your mobile phones are switched “OFF” or set on “SILENT” mode. THANK YOU

UEM BUILDERS BHD COMMUNICATION – ATC • ATC (Any Time Communication) • Web-based SMS UEM BUILDERS BHD COMMUNICATION – ATC • ATC (Any Time Communication) • Web-based SMS system for speedy communications within and outside company • All announcements & info dissemination through SMS system • Messages are automatically recorded • System is usable by all registered staff and includes part of our supplier/contractor at various projects

UEM BUILDERS BHD COMMUNICATION ACROSS TIME-ZONES BLACKBERRY vs SMS UEM BUILDERS BHD COMMUNICATION ACROSS TIME-ZONES BLACKBERRY vs SMS

ADVANTAGES OF ATC SYSTEM UEM BUILDERS BHD • 93. 9% of Malaysians own a ADVANTAGES OF ATC SYSTEM UEM BUILDERS BHD • 93. 9% of Malaysians own a handphone (vs Blackberry, PDA) • It is close to you (vs laptop/PC) • SMS platform can be accessed anywhere (vs International roaming data access) • Forced to make immediate decisions • Reduce time-loss (vs paper-based systems)

COMMUNICATION – ATC • Areas where Efficiency is enhanced: UEM BUILDERS BHD – Approvals COMMUNICATION – ATC • Areas where Efficiency is enhanced: UEM BUILDERS BHD – Approvals – Communication – Broadcast information – Retrieval of information – Polling & Advertisement – Cost reduction – Paper usage & Storage space • 1 single SMS to broadcast to various Groups, e. g. , MY for MALAYSIA, HOD for Heads of Depts, etc.

UEM BUILDERS BHD ATC SYSTEM ARCHITECTURE UEM BUILDERS BHD ATC SYSTEM ARCHITECTURE

KEY FEATURES OF ATC@UEMBB Send SMS via ATC UEM BUILDERS BHD Send SMS from KEY FEATURES OF [email protected] Send SMS via ATC UEM BUILDERS BHD Send SMS from mobile phone to mobile phone. Send SMS from web interface to mobile phone. Send SMS to multiple groups.

UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC

KEY FEATURES OF ATC@UEMBB Email Push UEM BUILDERS BHD Push email to mobile phones. KEY FEATURES OF [email protected] Email Push UEM BUILDERS BHD Push email to mobile phones. E-mail filtering to reduce messaging, e. g. , filter only emails from BOSS & Secretary

KEY FEATURES OF ATC@UEMBB Meetings, Appointments, To Do List UEM BUILDERS BHD Receive request KEY FEATURES OF [email protected] Meetings, Appointments, To Do List UEM BUILDERS BHD Receive request for meeting confirmation. Reminders via SMS (15 mins notice)

UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC

KEY FEATURES OF ATC@UEMBB Retrieving Info UEM BUILDERS BHD Check balance of leave entitlement KEY FEATURES OF [email protected] Retrieving Info UEM BUILDERS BHD Check balance of leave entitlement Check balance of medical benefit entitlement

KEY FEATURES OF ATC@UEMBB Contacts Search Send SMS with email-ID to get the mobile KEY FEATURES OF [email protected] Contacts Search Send SMS with email-ID to get the mobile number. UEM BUILDERS BHD ATC will response within seconds.

UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC

KEY FEATURES OF ATC@UEMBB Calendar Updates Send SMS to know the schedule of the KEY FEATURES OF [email protected] Calendar Updates Send SMS to know the schedule of the day. UEM BUILDERS BHD ATC will response within seconds.

KEY FEATURES OF ATC@UEMBB Polling / Survey UEM BUILDERS BHD Send survey to staff KEY FEATURES OF [email protected] Polling / Survey UEM BUILDERS BHD Send survey to staff with preformat response. Staff have an option to reply and result will be generated automatically.

Send SMS from mobile phone To: 0192610741 From: 0163300401 Bakar Please attend meeting at Send SMS from mobile phone To: 0192610741 From: 0163300401 Bakar Please attend meeting at IJN today, 2 pm. TQ. ATC FR: Ismail TO: Bakar MSG: Please attend meeting at IJN today, 2 pm. TQ. Bakar Please attend meeting at IJN today, 2 pm. TQ. Composing | Replying to a Message Sender email-ID: Ismail ATC FR: Ismail TO: Bakar MSG: Please attend meeting at IJN today, 2 pm. TQ. Receiving Message Receiver email-ID: Bakar

Send SMS from mobile phone (continued…) To: 0122812474 Johan, Chong Submit your weekly report Send SMS from mobile phone (continued…) To: 0122812474 Johan, Chong Submit your weekly report ASAP. TQ. PM Please submit weekly report ASAP. TQ From: 0192610741 NO MEMO Composing | Replying to a Message Sender email-ID: Mazlan ATC FR: Mazlan TO: Johan, Chong MSG: Submit your weekly report ASAP. TQ. ATC FR: Mazlan TO: PM MSG: Please submit weekly report ASAP. TQ Receiving Message Receiver email-ID: PM (All Project Managers)

Send SMS from mobile phone (continued…) To: 0122812474 Johan, Chong Submit your weekly report Send SMS from mobile phone (continued…) To: 0122812474 Johan, Chong Submit your weekly report ASAP. TQ. Ali Need to purchase replacement tires for truck RM 250 cos punctured on hiway Composing a Message Sender email-ID: John NO PAPER RECORD S To: 0122812474 ATC FR: Mazlan TO: Johan, Chong MSG: Submit your weekly report ASAP. TQ. John Purchase of tires at RM 250 approved Replying to Message Receiver email-ID: Ali (Superior)

UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC

UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC

AIR TRAVEL REQUISITION (ATR) - 1 1) Call travel agent for flight details Inform AIR TRAVEL REQUISITION (ATR) - 1 1) Call travel agent for flight details Inform Secretary UEM BUILDERS BHD Decides to fly to Sabah 2) Send ATC to superior for Approval ATR abas michael 2108 2308 Sabah To atd mtg on kunak hsptl with jkr & moh System generates Case-ID

AIR TRAVEL REQUISITION (ATR) - 2 ATR Q 716 OK ATR Q 716 No AIR TRAVEL REQUISITION (ATR) - 2 ATR Q 716 OK ATR Q 716 No UEM BUILDERS BHD For overseas travel, 2 nd Tier Approval from MD Flies to Sabah! Travel agent issues e. Ticket (No P. O. ) System 1) Send ATC to Secretary 2) Copy to Superior/HR for record Fills up online form to Travel Agent cc HR

UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC UEM BUILDERS BHD ANYTIME COMMUNICATION – ATC

UEM BUILDERS BHD UEM BUILDERS BHD

UEM BUILDERS BHD UEM BUILDERS BHD

UEM BUILDERS BHD COMMUNICATION • Online Traffic Information Management System • Facility for Road-Users UEM BUILDERS BHD COMMUNICATION • Online Traffic Information Management System • Facility for Road-Users by PBSB • 2 -pronged approach – user & jams as plan travel Alert Reduce user will

COMMUNICATION UEM BUILDERS BHD • • • CELCOM 013 -3883131 DIGI 016 -3390999 MAXIS COMMUNICATION UEM BUILDERS BHD • • • CELCOM 013 -3883131 DIGI 016 -3390999 MAXIS 012 -3446900 Format “OTIM code” code for Penang Island bound: topen or kepen • code for Mainland Prai bound: toprai or keprai

SAMPLE REPLY FROM OTIM UEM BUILDERS BHD OTIM CODE: topen DEST: To Penang Island SAMPLE REPLY FROM OTIM UEM BUILDERS BHD OTIM CODE: topen DEST: To Penang Island INFO: Seberang Jaya=Clear; Juru=Clear; Toll Plaza=Clear; Udini=Clear; Bayan Baru=Clear [Estimated time travel on the bridge : 15 minutes] PBSB OTIM CODE: keprai DEST: Ke Seberang Prai INFO: Bayan Baru=Lancar; Udini=Lancar; Main Span=Amat sesakkemalangan; Juru=Lancar; Seberang Jaya=Lancar [Anggaran masa perjalanan di atas jambatan : 40 minit] PBSB

UEM BUILDERS BHD APPROVAL PROCESS – PAPERLESS • 2 major initiatives – Paperless & UEM BUILDERS BHD APPROVAL PROCESS – PAPERLESS • 2 major initiatives – Paperless & ATC • Paperless – The process of filling forms and passing it around, keeping photocopies is now being simplified thru web-based application • Superior/Approver will be prompted via e-mail notifications • Transaction is stored electronically

APPROVAL PROCESS – ATC UEM BUILDERS BHD • ATC (Any Time Communication) • SMS APPROVAL PROCESS – ATC UEM BUILDERS BHD • ATC (Any Time Communication) • SMS based system where the messages/ approvals are automatically recorded • Approval/Rejection from Superior will be immediate, thus saving time • When approved, documentation/justification can be filed later for record

UEM BUILDERS BHD PAPERLESS / ATC FROM Paper-Based Slow Decisions Office Hours only Workplace UEM BUILDERS BHD PAPERLESS / ATC FROM Paper-Based Slow Decisions Office Hours only Workplace only TO Electronic-Based Instant Decisions Anytime Anywhere (+Overseas)

UEM BUILDERS BHD CONSTRUCTION PROCESS • Project Barometer has been established to monitor physical UEM BUILDERS BHD CONSTRUCTION PROCESS • Project Barometer has been established to monitor physical & financial performance of projects • Basically goes down to utilization of: – Manpower, – Materials, – Machine. • Productivity tracked and reported to Management • Managing sub-con Tracking project performance in detail

Labor Materials Machineries Project Cost Elements UEM BUILDERS BHD Profit Over Head Cost Labor Materials Machineries Project Cost Elements UEM BUILDERS BHD Profit Over Head Cost

HOW DO WE MANAGE/OPTIMIZE 1. Materials Wastages control 2. BQ under / over provided HOW DO WE MANAGE/OPTIMIZE 1. Materials Wastages control 2. BQ under / over provided 3. Price Materials Fluctuation 4. Materials over / under supply UEM BUILDERS BHD 5. Direct Source – advantage of cheaper prices.

BAROMETERS: Consists of following info in graphical form : 1. Cumulative Material available on BAROMETERS: Consists of following info in graphical form : 1. Cumulative Material available on site – Materials quantity scurve 2. Materials Efficiencies – Daily Materials Availability Analysis 3. Wastages Management Ratio (Actual Qty / BQ Qty) 4. Manpower vs Materials utilization 5. Machineries vs Materials utilization UEM BUILDERS BHD 6. Materials Expenditure vs Budgeting 7. Materials cost per unit value

UEM BUILDERS BHD UEM BUILDERS BHD

UEM BUILDERS BHD UEM BUILDERS BHD

UEM BUILDERS BHD OVERALL PRODUCTIVITY UEM BUILDERS BHD OVERALL PRODUCTIVITY

UEM BUILDERS BHD MATERIAL QUANTITY S-CURVE UEM BUILDERS BHD MATERIAL QUANTITY S-CURVE

UEM BUILDERS BHD DAILY PRODUCTIVITY UEM BUILDERS BHD DAILY PRODUCTIVITY

UEM BUILDERS BHD MANPOWER PRODUCTIVITY UEM BUILDERS BHD MANPOWER PRODUCTIVITY

UEM BUILDERS BHD MACHINERY PRODUCTIVITY UEM BUILDERS BHD MACHINERY PRODUCTIVITY

UEM BUILDERS BHD DAILY RM TURNOVER UEM BUILDERS BHD DAILY RM TURNOVER

UEM BUILDERS BHD PRODUCTIVITY HIT RATIO UEM BUILDERS BHD PRODUCTIVITY HIT RATIO

UEM BUILDERS BHD DAILY UPDATING OF PRODUCTIVITY INFO • Supervisor/Engineer to provide info of UEM BUILDERS BHD DAILY UPDATING OF PRODUCTIVITY INFO • Supervisor/Engineer to provide info of productivity achieved to Planner/Scheduler on daily basis • Gradually Trial system using ATC to feed info • System will send SMS to Supervisor at 6 pm to prompt/remind • Supervisor will SMS productivity achieved for the day • Planner will retrieve info from system

UPDATING OF INFO Supervises earthwork at Zone A Supervisor A UEM BUILDERS BHD Sends UPDATING OF INFO Supervises earthwork at Zone A Supervisor A UEM BUILDERS BHD Sends ATC at 6. 30 pm : BARO TLW 5 A EW 120 m 3 System sends ATC at 6 pm : BARO TLW 5 A EW xxxm 3 Planner retrieves info Reconciles data with Supervisor on weekly basis DATA stored on system

BENCHMARKING UEM BUILDERS BHD • Benchmarking through productivity rates/ project barometers • Best productivity BENCHMARKING UEM BUILDERS BHD • Benchmarking through productivity rates/ project barometers • Best productivity rates / barometers are set as benchmark • Incentive given to match or out perform the given benchmarks • Merit Points are awarded on Quarterly Basis if productivity above set benchmark

INCENTIVE SCHEME – MERIT PLUS UEM BUILDERS BHD • Merit Plus • Points are INCENTIVE SCHEME – MERIT PLUS UEM BUILDERS BHD • Merit Plus • Points are collected similar to Bonus Link Card! • Use the carrot, spare the stick! • Rewards will be given at end of year based on points collected Monetary value of Merit Points vary according to Company performance

UEM BUILDERS BHD REWARDS POINTS UEM BUILDERS BHD REWARDS POINTS

UEM BUILDERS BHD NEW IDEAS – ESS • Employee Suggestion Scheme (ESS) • Proactive UEM BUILDERS BHD NEW IDEAS – ESS • Employee Suggestion Scheme (ESS) • Proactive approach in sourcing for ideas • Quarterly evaluation of suggestion by Management • Best suggestions are rewarded with Merit Points • Committee evaluates and recommends suggestion for implementation

INTERNAL PROCESSES – COMMITTEES UEM BUILDERS BHD • Committees are formed based on needs INTERNAL PROCESSES – COMMITTEES UEM BUILDERS BHD • Committees are formed based on needs • Either mooted by Management or Staff • Any staff can form a committee if there is an area of potential improvement is identified • Membership of committee on voluntary basis • Committees are rewarded with Merit Points • Committees operate on low tech basis – Brain storming, data collection, etc. Not QCC, Six Sigma, etc.

UEM BUILDERS BHD NEW IDEAS – COMMITTEES • New ideas are also sourced through UEM BUILDERS BHD NEW IDEAS – COMMITTEES • New ideas are also sourced through formation of committees • These committees are tasked with coming out with possible ideas only • Actual implementation will be by different teams/committees • Ideas are not forthcoming if need to be implemented by the one with bright ideas!

KNOWLEDGE MANAGEMENT UEM BUILDERS BHD HARNESSING KNOWLEDGE & EXPERIENCE KNOWLEDGE MANAGEMENT UEM BUILDERS BHD HARNESSING KNOWLEDGE & EXPERIENCE

UEM BUILDERS BHD POST-MORTEM • Post-Mortem process to identify strengths & weaknesses in project UEM BUILDERS BHD POST-MORTEM • Post-Mortem process to identify strengths & weaknesses in project delivery • 3 -Day off-site session with Project Team / HQ Support / Management • Outcomes are documented and tabled to Management • Changes made to Systems / Processes / Procedures • Benchmarks are updated • Knowledge/Experience shared through Knowledge Sharing Program

KNOWLEDGE SHARING - KSP UEM BUILDERS BHD • Knowledge Sharing Program (KSP) • In-House KNOWLEDGE SHARING - KSP UEM BUILDERS BHD • Knowledge Sharing Program (KSP) • In-House Program to encourage knowledge sharing • Facilitators are internal staff • Currently, supplier/contractor/ consultant are being invited to share their knowledge • Merit points awarded to participants

UEM BUILDERS BHD KSP PROGRAM – SAMPLE UEM BUILDERS BHD KSP PROGRAM – SAMPLE

ARCHIVING (KNOWLEDGE MANAGEMENT) UEM BUILDERS BHD • Technical Database/Library • Physical & Electronic database ARCHIVING (KNOWLEDGE MANAGEMENT) UEM BUILDERS BHD • Technical Database/Library • Physical & Electronic database of technical info / method statements / specifications / journals to support project teams “Private knowledge is knowledge lost”

THANK YOU UEM BUILDERS BHD E-Mail: michael@uembuilders. uemnet. com THANK YOU UEM BUILDERS BHD E-Mail: [email protected] uemnet. com