Operation Improvement Plan

Making mistakes is unavoidable features of human beings. But what if one mistake is repeated for the second time and it is such an error that cost human lives? Construction company Bogl & Krysl is recently facing this issue. Only few years after the bridge built by this company collapsed in Czech Republic, another one in Slovakia fell down. In both of the cases either workers or by-passers died. Witnessing these tragedies, public started questioning processes and overall operation of the company.

Resulting from the closer look at the company background and procedures it is visible that there are faults that need to be corrected in order to improve company? s future operations and existence. Massive outsourcing and cost elimination together with lack of control and supervision are probably the most crucial issues in the case. In order to improve current situation in Bogl & Krysl several techniques can be used. However, two of them seem most fit and efficient right now. At the beginning proper project management must be transformed and reengineered to improve processes and techniques of the company.

Secondly, it would be beneficial to improve planning and control by usage of the Plan-Do-Check-Act cycle that might help company to eliminate mistakes and increase proficiency in terms of operations. After implementation of these techniques, company can provide quality solutions and well-developed constructions to its customers but also to society. On the other hand, it is also necessary to invest in public relation and admit its previous wrong-doings because with current status, the company loses trust of the public and consequently also investors. Organizational

Description

Bogl & Krysl started its operation in Slovakia in 1993 by merger with international company Max Bogl Bauunternehmung GmbH (Bogl a Krysl, k. s. , n. d. ). Except for Slovakia, the company runs its business in Czech Republic and Poland. Activities of Bogl & Krysl are connected to building industry and engineering, more precisely constructions of roads, highways and bridges. The company also produces modules, steel constructions, digs and exploits stones (Spolecnost Bogl a Krysl, k. s. , 2013). As stated on their website, the company constantly improves its technology, manufacturing process, procedures and methods of control.

This strategy helped Bogl & Krysl to establish stable position in the given industry. Moreover, the company claims to provide the best quality and professional workforce as well as a construction methodology that aims to preserve environment in which it operates (Spolecnost Bogl a Krysl, k. s. , 2013). Problem Definition Despites company? s claims about process innovation and control, the major problem occurred in 2012. Bogl & Krysl won tender announced by Slovak government that dealt with construction of nine kilometer long fragment of highway D1 from Janovce to Jablonov.

The construction was launched in 2011; however, the company decided to outsource its operation and divide the work among more firms. In consortium with Slovak Vahostav, the construction was provided by a sub supplier Semos and Skruze Weise that was in charge of concreting (Prejavila sa nizka cena? Na useku mosta smrti usetrili 37%, 2012). The process seemed to go well until the disaster of November 2nd, 2011 when bridge near the village Kurimany which was a part of above mentioned highway collapsed.

Being still in the process of construction, heavy concrete and steel structure killed 4 people and caused severe injuries to another 14 workers. What is more, this was not the first time the company was responsible for fatalities. In 2008, another bridge being built by Bogl & Krysl in Czech Republic collapsed and killed 8 people and almost hundred others were injured (Spadnuty most na Spisi: Firmu Bogl & Krysl sudia aj z nestastia v Cesku, 2012). Problem Justification Slovak Ministry of transport claimed that Bogl & Krysl was chosen because it was able to compete with a price that was 37% lower than other tender candidates.

Ministry representatives also stated that it is natural to execute construction with help of other companies as suppliers; nevertheless, Bogl & Krysl is responsible for whole project. Although, case investigation is not over, main theories propose that the reason for collapse was wrongly chosen material, human failure, lack of control or combination of those (Prejavila sa nizka cena? Na useku mosta smrti usetrili 37%, 2012). Information available so far claims that the reason for downfall was unstable support construction installed in the bridge.

All the companies involved in the case are trying to get rid of the responsibility and accuse others of neglecting their obligations. As stated by the Slovak Ministry of Transportation, Bogl & Krysl is the company chosen for the tender and therefore, should be responsible for whole process of construction even when using sub suppliers. Experts dealing with the case inform that in similar projects inspection and control should be conducted exclusively by independent third party which was not the case this time as the process was controlled by state company called Narodna Dialnicna spolocnost (Morhacova, 2012).

In terms of the operations, it seems that the massive outsourcing caused the loss of control and revision mechanism over the project. In addition, inventory used in construction was probably underestimated as well as the resource planning mainly in terms of the workforce. Analysis – Solutions, Reasoning and Implementation of Theories One of the possible solutions that could be implemented in order to improve the run of the company and avoid possible construction mistakes and closely related tragedies is to improve project management. The reasonable and careful managing of the project is the key factor of the success.

Therefore, the company should invest time, integrate responsible and experienced employees to manage and fulfill all following steps that are needed to end project without any problems. According to Larson and Grey, the major characteristics of the project management are: “1. An established objective 2. A defined life span with a beginning and an end 3. Usually, the involvement of several departments and professionals 4. Typically, doing something that has never been done before 5. Specific time, cost, and performance requirements” (2011). First of all, company should clearly set and define the project.

This step includes information like the target group, importance of the project, and the level of difficulty. Establishing of objectives is important in order to have an idea of needed financial and other available resources, qualification of employees that will be needed in the process and overall information about the scope. After the objectives are defined and described enough, there is a needed to determine the timeline of the project. In this step, there should be clearly stated how long it takes to complete the project without lowering the quality and all other deadlines connected to the project.

Then, company should follow the third step which is to communication with workforce involved. To be more specific, company should create and manage the teams according to their function. Even though the teams are divided into the groups, they have to be closely connected together and be under the guidance of a project manager. The teams have to be aware and well informed about the project. One part of this step is to deeply cooperate with outsourcing companies if there are some. Next step is related to the flexibility of the project management.

Even though there the steps are determined and require some kind of routine, company has to be flexible, so that it is easy to change or improve whatever might be needed. Finally, one of the most important functions of the project management is constraints like specific time, cost and performance. Company should follow all of the steps to successfully finish the project on time and within the appropriate budget (Larson and Grey, 2011). The reason why improvement of the Project Management would be beneficial for the company is that it is obvious that Bogl & Krysl is doing mistakes in some of the already mentioned steps.

If the company would focus on deep analysis and management of all project parts, they will decrease the amount of failures and mistakes done previously. For example, it would be wise to scheme the impact of usage of various materials and techniques to see its results and predict possible dangers. The analysis based on the project management principles that would be done before the start of the construction will clearly demonstrate that it is not possible to think about cheaper materials or untested techniques in such a construction.

Even though, a project manager may plan to use wrong materials in step 1, in third step which is focusing on discussion among specialists and technologists, this will be strongly refused. Therefore, project management improvement would be very beneficial for company Bogl & Krysl in order to increase construction efficiency and reliability. Another possible solution, for the problem that occurred, can be usage of Deming cycle. Deming cycle consists or 4 different steps, which are plan, do, check and act. If this cycle was used for control and improvement of processes of building bridge, disaster as crushing wouldn’t happen.

Project managers that worked on this project could have used Deming cycle to check and improve the project process, and probably result wouldn’t be the same. They could PLAN all costs and needed time for the project. After careful analysis of time and cost, it is wise to increase the price of the construction offer in order to eliminate risk of unexpected problems and also to cover additional expenses arising during the project. Planning phase also involves creation of construction scenarios with evaluating pros and cons of all possibilities. Just after careful analysis is done, the company can continue with DO.

However, in this phase it is necessary to start with a sample of construction and scenario implementation to see if the plan works according to expectations. As the construction is launched, plans created in phase one need to be understood and followed by all employees. With project of this size third phase which is CHECK should implemented as early as the construction begins. This is very important to detect possible mistakes and correct them sooner than they evolve to major problems or even disasters. When visible that construction sample is successful and all possible problems are eliminated, the last phase which is ACT takes pace.

This means that the company can start project in its full extent because problems are monitored and it is easier to take care of them and proceed effectively. Conclusion References Bogl a Krysl, k. s. (n. d. ). Retrieved February 9, 2013, from http://www. zsps. sk/web/index. php? option=com_content&view=article&id=437:boegl-a-krysl-ks-poboka&catid=106:profily-clenskych-firiem&Itemid=281 Larson, E. W. & Gray, C. F. (2010). Project Management: The Managerial Process (5th ed. ). New York: McGraw-Hill. Morhacova, J. (November 8, 2012). Tragedia pri vystavbe dialnic. [Highway Construction Tragedy]. Trend, November 2012, 8. Prejavila sa nizka cena?

Na useku mosta smrti usetrili 37%. [Low Cost in Charge? 37% Savings at Bridge of the Death Construction]. (November 4, 2012). Retrieved from http://www . cas. sk/clanok/235744/prejavila-sa-nizka-cena-na-useku-mosta-smrti-usetrili-37. html Spadnuty most na Spisi: Firmu Bogl & Krysl sudia aj z nestastia v Cesku. [Bridge Collapse in Spis Region: The Company Bogl & Krysl Accused Also Of Tragedy in Czech Republic] (November 2, 2012). Retrieved February 10, 2013 from http://www. pluska. sk/krimi /domace-krimi/spadnuty-most-spisi-firmu-bogl-krysl-sudia-aj-z-nestastia-cesku. html Spolecnost Bogl a Krysl, k. s. [The company Bogl a Krysl, k. s. ].