Operations Management for Construction Businesses (Core and Sustainable Construction)

Forecasting

The process of estimating future resources and their costs in business operations.

Balance Sheet

A snapshot of a business's assets, liabilities, and equity at a specific point in time.

Income Statement

A financial statement that summarizes the revenues and expenses over a period, indicating profit or loss.

Cash Flow Statement

A statement that tracks the cash movements in and out of a business.

Demand Forecasting

The practice of estimating future sales volume based on historical data and market analysis.

Current Ratio

A liquidity ratio that indicates a company's ability to pay short-term obligations, calculated as Current Assets divided by Current Liabilities.

Quick Ratio

A measure of liquidity that indicates a company's ability to meet short-term obligations without relying on inventory.

Gross Margin

A financial metric that shows the percentage of revenue remaining after deducting the cost of goods sold (COGS).

Debt-to-Equity Ratio

A financial ratio that compares a company's total liabilities to its total equity, indicating leverage.

Resource Plan

A detailed plan that translates sales forecasts into required labor hours, materials, and equipment.

Labor (in resource selection)

Considerations include skills, certifications, availability, and safety behavior.

Preventive Maintenance

Scheduled maintenance tasks aimed at preventing equipment failures and prolonging asset life.

JIT (Just-in-Time)

A purchasing method that aligns raw-material orders from suppliers directly with production schedules.

LEAN

A management philosophy aimed at maximizing value by minimizing waste and improving flow.

Inventory Carrying Cost

The total cost associated with holding inventory, including capital, storage, handling, risk, and quality loss.

Capital Cost (in carrying cost)

The opportunity cost of capital that is tied up in inventory.

Post-Project Review

A review conducted after project completion to capture lessons learned and improve future processes.

Key Performance Indicators (KPIs)

Measures used to evaluate the success of an organization in achieving its objectives.

Feedback Loop

A process of collecting information and making adjustments based on results to improve future performance.

Sustainability in Construction

The practice of meeting construction needs without compromising the ability of future generations to meet theirs.

Inventory Reorder Point

The predetermined stock level that triggers a new purchase order.

Contingency Budget

An allowance for unexpected costs in a financial plan.

Environmental Management System (EMS)

A framework for managing the environmental impacts of a business's activities.

Corrective Maintenance

Reactive maintenance that occurs after a failure has taken place.

Predictive Maintenance

Maintenance that uses data to predict when equipment will fail so that maintenance can be performed just in time.

Near-Miss Reporting

A safety management practice that involves documenting incidents that almost resulted in injury or damage.

Warehouse Issuing Practice

The method used to select and distribute inventory from storage to ensure proper usage and minimize waste.