building industry game b.i.g. - building oror building/heavy associated schools
TRANSCRIPT
Building Industry Game
B.I.G.http://cmweb.caed.calpoly.edu/big41 - Building or http://cmweb.caed.calpoly.edu/big51- Building/Heavy
AssociatedSchools ofConstruction
COnstruction INdustry Simulation
COINS
Faculty of Civil EngineeringDepartment of Economics and
Management
CZECH TECHNICAL UNIVERSITY IN PRAGUE
COnstruction INdustry Simulation
(COINS)
Past Company Sponsors
2003
2004
2005
Under Construction
2006
2009 - 20112008
• A computer based construction
management game.• Participants play the role of contractors.• Players compete in a market with
variable demand for construction work. • Both bid and negotiated work is available
to the companies.• This is not a cost estimating exercise..
Overview
If not an estimating game what is it?
• A bid strategy simulation• A project management simulation• A construction company simulation• A construction accounting simulation• A company strategy simulation• All of above and more
Overview
Where & What is the learning?
Overview
The learning happen as the students begin runningtheir companies, having success and equally makingmistakes along the way.
The Instructor fills in the gaps. All programs in ConstructionManagement have areas that are stronger than otherareas, also in a capstone setting this is the only instrumentthat shows the connection between all of the elements.
Instructor Parameter:
The instructor can change just about all the basic defaults to satisfy the instructors own ideasof how the game should be played.
Types of Projects available• Private Apartments• Public Apartments• Private Schools• Public Schools• Private Hospitals• Public Hospitals• Private Offices• Public Offices• Private Industrial• Public Industrial
Game Detail
The Market Place Has both:Building and Heavy Construction Projects.
Also Projects fall into two catagories.
• Negotiated Projects– Non-bonded
Private
• Bid Projects– Bonded Public– Non-bonded
Private
Game Details
Each Project is made up of:
• Nine Activities• Each project has it’s own schedule• The cost and overall schedule is
determined by the methods picked for each activity.
• Each activity has 5 different methods to pick from.
Game Details
All Building Projects have the Activities names:Each job will have nine activities:
Game Details
– Excavation– Foundation– Basement– Framing– Closure
– Roof– Siding– Finishing– Mechanical and
Electrical
All Heavy Projects have the Activities names:
• Every activity has five different methods.• Each method has a different cost & labor
productivity (faster productivity methods
usually have higher costs). • Companies must select a method for each
activity, applying some kind of overall
strategy.
Activity Methods
Game Details
Game Play
• Form multiple student teams.
• Each team plays the role of a construction firm.
• Each team is given a certain amount of capital at the start of the game.
Formation of Teams:
• Time is represented as "periods," each
period being two months of real-time.• The period is advanced once or twice
per week.
Game Play
• Between one and ? new jobs are
available for bid each period.• Teams are given quantities, expected
production, and costs for each activity on
every job available for bid.
Game Play
• Companies must decide which jobs to bid
on, select a method for each activity,
determine their direct cost, then settle on a
bid price by adding mark-ups and desired
profit.• Internally simulated contractors also bid on
every job to keep the players prices within
reason.
Game Play
Process of Bidding
Game Play• As the period
advances, the computer evaluates bids on every job and announces the winners.
• Players evaluate the results and attempt to interpret their competitors strategies as the game progresses.
Game PlayThe lowest bid does not necessarily win.
Factors taken into account:• Bids are rejected if
below a minimum amount (calculated by the computer).
• Firm must have cash-on-hand at least 5% of the bid amount.
• Company may not be overloaded with too many other jobs.
• All companies have a bonding limit that may not be exceeded.
• At the end of every period, each team
receives a:1. Progress Report
2. Complete Dynamic Financial Reports
• Gives a complete analysis of the work
accomplished and the financial result to
date.
Game Play
• The production rate for the work
packages selected on each activity.• Uncertainty factors:
1. Weather conditions
2. Labor availability
3. Fluctuating cost of materials
Game Play
The amount of work completed
during a period depends on:
• Direct construction costs.• Bidding costs.• Consulting services.• Liquidated damages.• Interest on borrowed money.
Game Play
The end-of-period financial reports
show expenses incurred for:
Game Play
• Players must monitor their financial position as work progresses, and bill for their progress payments.
• Also, teams must create strategies to improve their bonding limits.
• A record of successful projects creates an opportunity to obtain negotiated work.
Game Play
Changes in company ratios are also logged along with changes to the company’s appraisal metrics:
• Financial liquidity• Financial success• Responsibility• Pace• Ethics• Name recognition
• Pay a consulting fee to receive information
on weather forecasts, material prices, labor
and material availability, and market
projections for future periods.• Apply for loans.• Make a change and specify a different
method for the following periods.• Use overtime to speed up certain activities
(greatly increasing the labor costs).
Game PlayAs the game progresses, teams have the following options:
• At the conclusion of the game, the
instructor can either:• have the simulation forecasts the expected
results of any on-going projects or• use the actual results at that time.• a financial report shows the final total worth
of the firm in either case.
• Maximization of profit & strong financial
condition are main objectives but:• additional emphasis can be placed on the
company metrics.
End of Play
Checkmateand
The End
AssociatedSchools ofConstruction