1. Analyzing of Japanese Construction Industry from the Viewpoint of International Desk of Construction Professor. Dr.-Eng. Shizhao DING Research Institute of Project Administration and Management Tongji University, Shanghai Aug. 27 1999, Kochi

2. 1. Introduction 2. The Change of International Construction Industry 3. Reviewing of Japanese Construction Industry System 4. Suggestions to Add Value to Japanese Construction Production Process

3. 1.Introduction 1.1 Background of the Reviewing 1.2 General Impression to Japanese Construction Industry

4. 1.1 Background of the Reviewing Project information of Japanese contractors in China As guest professor in Nagoya University from July 1998 to January 1999 Investigation and interviews (government body and firms ) in Tokyo in January 1999 As member of delegation of Chinese Ministry of Construction visited Japanese Ministry and contractors in June 1999

5. 1.2 General Impression to Japanese Construction Industry the role in the international market Japanese manufacturing industry Japanese manufacturing industry Construction industry Construction industry big difference

6. TECHNOLOGY MANAGEMENT Conservative in management field Active in technical field General Impression (2) TECHNOLOGY MANAGEMENT

7. exchange with another countries in the field of construction management TOO FEW General Impression (3)

8. Prefer keeping traditional instrument and procedure Do not pay enough attention to international innovation in construction industry General Impression (4)

9. 2. The Change of International Construction Industry 2.1 Globalization of Construction Industry. 2.2 Tomorrow‘s Company in a World of Hyper Competition 2.3 Private Finance Initiatives for Property and Construction Investment around the World 2.4 The Forefront of Change - Client’s Change 2.5 Innovation of Technology and Management 2.6 Managing in a Wired World 2.7 The Management of Change in an Organization and the Role of Technology 2.8 The Value Adds Services - Management of Process/Pre- Construction Services

10. What are the ‘ hot issues’ affecting construction around the globe ? Taking the pulse of the global construction industry, will it survive in its present form?

11. ADDING VALUE TO DESIGN AND CONSTRUCTION more change in 5 years than in previous 50 years Organizer : The Reading Construction Forum The University of Reading Oxford, Pembroke College 24-25 September,1997 Participants : 30, come from UK, USA, China, Australia, South Africa, Sweden. 7 counties

12. 2.1 Globalization of Construction Industry. INTERNATIONAL CONSTRUCTION MARKET INVESTMENT REGULATIONS DESIGN CONSTRUCTION MANAGEMNT CONSULTANT SUPPLIER

13. 2.2 Tomorrow‘s Company in a World of Hyper Competition (1)What is happening in the world to property and construction? (2)What are the drivers of change and how the leading companies embracing change in the market place? (3)Where are the growing construction market in the world? (4)Taking the pulse of the global construction industry, will it survive in its present form?

14. 2.3 Private Finance Initiatives for Property and Construction Investment around the World P F I reduces public sector borrowing promotes efficiency reduces bureaucracy PFI project : Infrastructure, hospital

15. 2.4 The Forefront of Change- Client’s Change Transparent production process Providing end product, like manufacturing industry New project delivery : CM, Partnering, Integrated Management Good quality Low cost Short duration Everybody wants the construction industry to change and client have been at the forefront of change

16. 2.5 Innovation of Technology and Management keep on leading edge Train, retrain, train again Continuous improvement program Europe IT-project control system New product, new services Technology development strategy Turnkey, partnering, DDC(develop+design+construction)... Document Management System in construction company

17. 2.6 Managing in a Wired World What are the new business opportunities being created by information technology and computers? The way in which information is managed in an organization is fast becoming new tools of competition What is the progress of the construction industry in the world? Is there hope for the digitally deprived and the digital homeless?

18. 2.7 The Management of Change in an Organization and the Role of Technology What are the key drivers of change? How can the construction industry adapt to change? What is the strategy for managing change?

19. 2.8 The Value Adds Services - Management of Process/Pre- Construction Services Providing service not only for management of construction process, but also for management of production process Providing service not only for management of implementation phase, but also for management of pre construction phase

20. 3. Reviewing of Japanese Construction Industry System 3.1 The perspective and Principle of Reviewing 3.2 Reviewing of the Organization System of Japanese Construction Industry 3.3 Reviewing of the Mechanism of Japanese Construction Market 3.4.Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry

21. 3.1 The perspective and Principle of Reviewing (1) Japanese Construction IndustryOrganization System Law System Mechanism TechnologyManagementEconomics Design Construction Supply INTERNATIONAL DESK OF CONSTRUCTION

22. The perspective and Principle of Reviewing (2) System of Japanese Construction Industry System of Japanese Construction Industry ? Benefit to designer and contractor Owner is satisfied Benefit to development of national economy Benefit continual development of construction industry

23. 3.2 Reviewing of the Organization System of Japanese Construction Industry (1) Construction Industry Government Bodies Professional institute Research institute University Designer Management consultant Contractor Supplier

24. Reviewing of the Organization System of Japanese Construction Industry (2) University Few/no BS course for Construction Management Technique Management Pay attention for the lecture of Project Management and Construction Economics Practical experience for project management of academic staffs

25. Reviewing of the Organization System of Japanese Construction Industry (3) Professional institute Professional institute The qualification of professional management of construction is very important In UK - CIOB In USA - AIC In Australia - AIOB International association - IAPMC In Japan

26. Reviewing of the Organization System of Japanese Construction Industry (4) Designer Scope of work : providing management service in project implementation phase ?

27. Reviewing of the Organization System of Japanese Construction Industry (5) Contractor Providing Full service : Program Management D+D+B+FM Management service of process, not only of civil job New contract forms : CM Partnering

28. 3.3 Reviewing of the Mechanism of Japanese Construction Market (1) Mechanism of construction market Forms of tenderTypes of contract Supply of professional management consultant

29. Reviewing of the Mechanism of Japanese Construction Market (2) Forms of tender/bid government project Open bid in western countries not identicall Limited competition

30. Reviewing of the Mechanism of Japanese Construction Market (3) Types of contract General contract Familiar with Lump SumUnit Price Turnkey - design and buildNot base on functional description In European Lump SumUnit Price In Germany: since 1971 functional description CM in Japan is not identical with CM in USA Familiar with the innovation of project delivery

31. Reviewing of the Mechanism of Japanese Construction Market (4) Supply of professional management consultant Government bodies Private sector Oversee market Low

32. 3.4.Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry (1) Asia Construction Market Japanese Construction Industry Design(+ Civil Eng.) Construction(+ Civil Eng.) Management Material Personal cost (-)Finance (+) Facility(+)

33. Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry (2) Advantage Finance Technology Design and construction for large scare and complicated project Construction Machine and tools PFI Project

34. Reviewing of the Opportunity Placing on the Asia Construction Market for Japanese Construction Industry (3) Management technique Comparison with American and European countries Few chance Design and construction of building Personal cost Influence on the opportunity to get job of design, construction and management consultant Problem/disadvantage

35. 4. Suggestions to Add Value to Japanese Construction Production Process 4.1 Look at the Innovation’s Tendency of International Construction Production Process 4.2 Promote Integrated Construction Production 4.3 Promote of Integrated Management for Construction Production 4.4 Promote Management Consulting Service

36. 4.1 Look at the Innovation’s Tendency of International Construction Production Process INTERNATIONAL DESK OF CONSTRUCTION

37. Look at the Innovation’s Tendency of International Construction Production Process (2) Virtual construction Change of Scope of work of construction firms Organization of information communication Virtual organization

38. Look at the Innovation’s Tendency of International Construction Production Process (3) Project Controlling Program Management Integrated Management

39. Look at the Innovation’s Tendency of International Construction Production Process (4) P F I

40. Look at the Innovation’s Tendency of International Construction Production Process (5) I T I C

41. 4.2 Promote Integrated Construction Production DESIGN + BUILD DEVELOPMENT MANAGEMENT + DESIGN + BUILD DESIGN + BUILD + FACILITY MANAGEMENT FINANCE + DEVELOPMENT + DESIGN + BUILD + FACILITY MANAGEMENT DEVELOPMENT MANAGEMENT + DESIGN + BUILD + FM

42. D + B DM FM F

43. DEVELOPMENT MANAGEMENT + PROJECT MANAGEMENT 4.3 Promote of Integrated Management for Construction Production + FACILITY MANAGEMENT Lifecycle management

44. 4.4 Promote Management Consulting Service Management Consulting Service Investor Developer Designer Contractor Supplier Adding Value to Design and construction