Post on 16-Oct-2021
Review of the Model-Based Supply
Chain Management Research in the
Construction Industry
Aspasia Koutsokosta Civil Engineer, MSc, PhD student at Democritus University of Thrace
Stefanos Katsavounis Assistant Professor at Democritus University of Thrace,
Department of Production Engineering and Management
1
World Academy of Science, Engineering and Technology
ICIEOM 2015: 17th International Conference on Industrial Engineering and Operations
Management, Athens, 20-21 July 2015
Athens, 20 July 2015
Aspasia Koutsokosta Civil Engineer, MSc, PhD student at Democritus University of Thrace
Dept. of Production Engineering and Management
Stefanos Katsavounis Assistant Professor at Democritus University of Thrace,
Dept. of Production Engineering and Management
Goals
• Provide a broad knowledge of models for Supply Chain Management in the
construction sector: modeling approaches, contextual factors, applicability,
common tools for modeling and problem solving
• Foster understanding of an emergent, multi-disciplinary and multi-faceted
research field which merges construction management, supply chain
management, logistics, decision-making and modeling
• Interpret, rationalize and compile the available body of knowledge which spans
qualitative and quantitative model-based research
• Highlight the role of modeling in improving the performance of the
construction sector
• Facilitate the implementation of Supply Chain Management in construction
through structured methods and Operations Research tools
2 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Contents
• Construction Supply Chain Management terminology
• Peculiarities and performance problems of the construction industry
• Construction Supply Chain Management as a remedy
• The role of modeling in Construction Supply Chain Management
• Conceptual models
• Optimization models
• Simulation models
• Assessment of the model-based literature
• Conclusions and future research
3 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Construction Supply Chain (CSC)
Construction Supply Chain Management (CSCM)
• CSC: network of organizations and
relationships (client/owner, designers,
contractor, subcontractors and
suppliers) including information flows,
capital flows and material flows
• CSCM: management of the total flows
and integration of key construction
business processes, from the demands
of client, design to construction
• SCM originated in the manufacturing
industry during 1980’s encompassing
logistics, Just-in-time principles, total
quality management, etc.
• Benefits: cost and time reduction,
performance improvement, added
value
4 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Source: Pryke (2009)
Construction peculiarities and problems
• Criticism for high fragmentation, large quantity of waste, low productivity,
cost overruns, schedule delays, economic uncertainty, opportunism,
temporary and adversarial relationships
• Problems stem from CSC interfaces and can be ascribed to:
inadequate conventional management practices
peculiarities of the construction industry
• Fragmented and temporal nature of CSCs, traditional project-based approach
of construction management instead of supply-based
• Features of construction: uniqueness, the immobility and size of construction
projects, the decentralized and discontinuous production which is confined to
shifting sites, the creation of temporal multi-organization networks, etc.
5 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
The role of modeling in CSCM
• Modeling reduces a complex real-life problem to a more understandable and
manageable problem which can answer the same questions imposed to the
initial problem
• Modeling the SCs is a prerequisite for effective SCM and integration
• Modeling offers valuable analysis tools that help construction managers to
realize opportunities, eliminate bottlenecks and make informed decisions by:
describing and understanding complex CSC systems
structuring and solving decision problems in the CSCM context
6 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Conceptual models for CSCM (1/4)
Author Title Scope Building blocks/key elements
Cheng et al.
(2001)
An e-business model to
support supply chain
activities in construction
Improving communication, coordination and information management
• E-business infrastructure • Network CSC structure
Lin & Tserng (2001)
A Model of Supply Chain Management for Construction Using Information Technology
Achieving real-time
information and efficient
communication
• Information technology, such as
Internet, intranet, extranet,
mobile devices, bar coding,
scanning and XML
Love et al. (2004)
A seamless supply chain
management model for
construction
Achieving inter-organizational
collaboration and integration
of design and production
within a construction project
• Horizontal organization project structure
• Cohesive project team with shared responsibilities and joint planning
Fengyu &
Shengyue
(2006)
The Research on the
Application of Supply
Chain Management in
Construction
Solving problems of stock
management, procurement
and information interchanging
in the Chinese construction
industry
• Strategic partnering relationships
• Internet-based information management platform
• Third-party logistics
7
Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Conceptual models for CSCM (2/4)
Author Title Scope Building blocks/key elements
Du
(2006)
A 3D communication
model for the
construction supply
chain - a route to
construction industry
integration
Restructuring the CSC with
respect to its
communication network
to achieve real integration
and communication
• Information and communication hub as a 3rd party connecting directly with every CSC member
• communication network relatively
independent of the CSC
Vaidyanathan
& Howell
(2007)
Construction Supply
Chain Maturity Model –
Conceptual Framework
Providing a roadmap to
realize the benefits of
CSCM and presenting the
current status quo of a
firm as well as possible
improvement steps
• Four maturity levels of CSCM
against assessments of process,
technology, strategy and value
• Maturity along functional, multi-
project and multi-firm integration
London
(2008)
Industrial organization
object-oriented project
model of the facade
supply chain cluster
Describing structural and
behavioral characteristics
of supply chain
procurement
• procurement modeling across CSC
• object-oriented modeling
• industrial organization economic
theory in order to model
8 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Conceptual models for CSCM (3/4)
Author Title Scope Building blocks/key elements
Meng et al.
(2011)
Maturity Model for
Supply Chain
Relationships in
Construction
Measuring and improving
the relationships between
the key partners of CSC
• Four maturity levels: price competition, quality competition, project partnering and alliance
• Assessment criteria of procurement, objectives, trust, collaboration, risk allocation, problem solving, etc
Khalfan et al.
(2011)
Supply Chain Capital
in Construction
Industry: A
Conceptual Model
Creating a learning supply
chain that manages
knowledge in CSC on long
term basis and achieving
an integrated CSC
• Knowledge management • Supply chain capital resulting from
many years of collaboration, knowledge and experience
• Trust, commitment, collaboration
Yan &
Zhangong
(2012)
Study on the
Information
Technology-Based
Lean Construction
Supply Chain
Management Model
Solving problems of high
procurement and
inventory costs and
ineffective information
exchange in CSC
• Lean thinking adoption
• Information Management Platform
with several sub-platforms based on
internet/ intranet
• Good quality inter-company
relationships among CSC parties
9 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Conceptual models for CSCM (3/4)
Author Title Scope Building blocks/key elements
Aloini et al.
(2012)
A conceptual model for
construction supply chain
management
implementation
Facilitating the
implementation of SCM to
construction and foster
understanding
• Building elements characterizing the adoption and implementation of CSCM: antecedents, approaches, benefits and contextual factors
Thunberg &
Persson
(2013)
A logistics framework for
improving construction
supply chain performance
Reducing costs and increasing productivity by mapping material and information flows between CSC members
• Builder´s SCOR model: adaptation of Supply Chain Operations Reference Model
• CSC performance measurement
Koçtaş & Tek
(2013)
Construction Supply Chains:
A proposal to develop a
new conceptual model
Adapting SCM concept to construction with focus on the information flows between CSC actors
• Principles of lean thinking • Information sharing • open information channels
Dike &
Kapogiannis
(2014)
A conceptual model for
improving construction
supply chain performance
Improving information exchange and collaborative working practices in CSC
• Building Information Modelling (BIM)
• Collaboration principles
10 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Remarks on qualitative models
• 57% (8 models) focus explicitly on information flows and aim to improve the
communication and coordination between CSC members
• 14% (2 models) refer to the progression of SCM adoption in construction in a
maturity scale
• Other issues addressed: structural and behavioral aspects, knowledge
management, mapping of flows
• Descriptive and not specific enough to be tested by means of case studies
and pilot projects neither can be easily expressed from a quantitative point
of view
• Conceptual frameworks that contribute adequately to theory building in
CSCM rather than soft OR approaches for practical decision problems
11 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Simulation models for CSCM (1/3)
Author Title Performance metrics and alternative scenarios
Simulation approach or software
Hong-Minh
and
Strohhecker
(2002)
A system dynamics model
for the UK private house
building supply chain
Impact of re-engineering policies on demand amplification
System dynamics based on Inventory and Order Based Production Control System models
Walsh et al.
(2004)
Strategic Positioning of
Inventory to Match Demand
in a Capital Projects Supply
Chain
Impact of inventory
management and positioning
scenarios on the delivery time
SIMPHONY
Sobotka and
Czarnigowska
(2005)
Analysis of supply system
models for planning
construction project logistics
Impact of outsourcing logistics
on material acquisition costs
not defined
Xue et al.
(2005)
An agent-based framework
for supply chain
coordination in construction
Impact of interactions among agents on several quantitative and qualitative attributes for supply chain coordination
multi-agent simulation and multi-attribute negotiation protocol and utility theory, ZEUS agent building toolkit
12 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Simulation models for CSCM (2/3)
Author Title Performance metrics and alternative scenarios
Simulation approach or software
• Vidalakis
and Tookey
(2006)
• Vidalakis et
al. (2011)
• Conceptual functions of a
simulation model for
construction logistics
• Logistics simulation
modelling across
construction supply chains
Impact of demand levels and vehicle fleet size on logistics costs (inventory and transportation costs)
discrete-event simulation modeling, Simul8
Hamzeh et al.
(2007)
Logistics Centers to Support
Project-based Production in
the Construction Industry
Impact of logistics centers and decentralized supply systems on material management costs
not defined
Voigtmann and
Bargstädt
(2010)
Construction Logistics
Planning by Simulation
Impact of alternative outfitting processes, such as diversified equipment, on logistic time and construction time
Tecnomatix Plant Simulation framework, Simulation Toolkit Shipbuilding
13 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Simulation models for CSCM (3/3)
Author Title Performance metrics and alternative scenarios
Simulation approach or software
• Cheng et al.
(2010a)
• Cheng et al.
(2010b)
• A service oriented
framework for construction
supply chain integration
• Modeling and monitoring
of construction supply
chains
Impact of information sharing and system integration factors on supply chain integration and collaboration
service-oriented framework (open standards, open source software and SCOR modeling framework), named SC Collaborator
• Ebrahimy
et al.
(2011a)
• Ebrahimy
et al.
(2011b)
• Simphony Supply Chain
Simulator: a simulation
toolkit to model the supply
chain of construction
projects
• Simulation modeling and
sensitivity analysis of a
tunneling construction
project's supply chain
Impact of several scenarios for production, storage, and quality control on the bullwhip effect and the duration of a tunneling project
SIMPHONY
14 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Optimization models for CSCM (1/3)
Author Title Objective and variables Analytical approach and method/ software
Xue et al. (2007)
A Two-Level Programming
Method for Collaborative
Scheduling in Construction
Supply Chain Management
• Maximization of profits • Indicative variables:
construction duration and materials lead time
• two-level nonlinear integer programming model
• simulated annealing and discrete search algorithm
Jian-hua and
Wan (2010)
Time-cost trade-off problem
in construction supply chain:
A bi-level programming
decision model
• Maximization of the
expected profit
• incentive intensity (money
unit/ per unit time) and
project’s duration
• two-level programming
model
• problem-specific
heuristics
15 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Optimization models for CSCM (2/3)
Author Title Objective and variables Analytical approach and method/ software
• Xu et al. (2011)
• Xu et al. (2012)
• Integrating Safety-Stock
and Crashing Decisions
for Recurrent Projects
• Project-driven supply
chains: integrating safety-
stock and crashing
decisions for recurrent
projects
• minimization of safety-stock and project crashing/delay cost per unit of time for recurrent projects subject to random material delays
• safety-stock decisions in material supply chains and crashing decisions in projects
stochastic multi-stage optimization model
16 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Optimization models for CSCM (3/3)
Author Title Objective and variables Analytical approach and method/ software
• Said and El-Rayes (2010)
• Said and El-Rayes (2012)
• Optimizing Material
Logistics Planning in
Construction Projects
• Optimal Material
Logistics Planning in
Congested
Construction Sites
• minimization of site logistics costs and minimizing of project criticality (by shifting noncritical activities to exploit interior space for material storage)
• material supply, interior storage plan, exterior layout, shifting of non-critical activities within float
• multi-objective optimization model
• genetic algorithms
Xu and Wei (2013)
Production-distribution
planning of construction
supply chain
management under
fuzzy random
environment for large-
scale construction
projects
• minimization of production and transportation costs and minimization of storage, transportation, and inventory penalty costs
• material quantities supplied from production sites to warehouses and from warehouses to concrete mixing plants
• two-level fuzzy optimization model
• artificial bee colony algorithm based on a fuzzy random simulation/ MATLAB
17 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Remarks on quantitative models
• 64% (9 models) are simulation models:
Main approaches: discrete-event simulation modeling, multi-agent
simulation or system dynamics
Main goals: investigate the impact of several factors on time and cost of CSC
• 36% (5 models) are optimization models:
Main approaches: mostly metaheuristics (simulation-based optimization) or
mathematical programming
main goal: profits maximization or minimization of costs along the CSC
18 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Assessment of the model-based literature
• Limited reference to multiple projects, multiple products and flows, predefined CSC
structures, limited reusability
• Optimization models are single-period or do not incorporate a time dimension and
simulation models describe only parts or individual relationships of the entire CSC
• Quantitative models do not easily go beyond the definition of the model (numerical
examples, interpretation of results, validation, sensitivity analysis, exhibition of
modeling techniques, justification of the algorithm used and the software selection)
• No explicit indication of the entity/ individual who manages and mobilizes the CSC,
nor of the final product of the CSC (entire project or only a construction material)
• Quantitative models fall under the hard Operations Research (OR) domain, but
qualitative models do not easily relate with soft OR approaches
19 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
Conclusions and future research
• Need to manage CSCs end-to-end from a multi-dimensional, system-wide and
multi-project perspective with long-term implications
• Need to combine the supply demands of several projects, exploit project
similarities and use structured pools of subcontractors and suppliers in future
models
• Need to develop models that either are reusable or integrate flows of
construction processes across several projects and periods of time
• Focus on robust optimization models with dynamic nature
• Careful adaptation of SCM models from other industries with focus on ad-hoc
analytical models capturing the intrinsic construction features
20 Review of the Model-Based Supply Chain Management Research in the Construction Industry
17th International Conference on Industrial Engineering and Operations Management
21