Communication Improvement for Integrated Construction Supply Chain Management Systems HU Wenfa 1, HE Xinhua 2 1. School of Economics and Management, Tongji University, P.R.China, 200092 2. School of Economics Management, Shanghai Maritime University, P.R.China, 100135 wenfahu@mail.tongji.edu.cn Abstract:Construction in general is characterized with project-based production. The construction supply chain is relatively fragmented, and the construction productivity is low and construction time and cost often overrun. Supply chain system is deemed an innovative and integrated management mode for resolving many problems from systems perspective in construction industry, and communication is the core issue to improve construction performance. This paper presents a systematic model of construction supply chain management integration enabling construction parties to improve communication performance. Construction project information is specified and illustrated for supply chain management, and then construction supply chain integration is modeled. Internet-based communication management and communication flow optimization for construction supply chain is suggested for improving construction performance and to accelerate the innovations in the construction industry. Keywords:construction project, construction supply chain, improvement, communication, system engineering 1 Introduction Construction in general is characterized with project-based production. The construction supply chain is relatively fragmented, and the construction productivity is low and construction time and cost often overrun. These characteristics also are major causes of performance-related problems facing the construction industry [1]. Supply chain management is adopted broadly in recent years to increase management performance and productivity. The construction supply chain management is an integrated approach for construction industry to resolve many problems and deficiencies existing in construction [2]. But there are many restrictions of integration in construction because of the temporary and complex nature of construction [3]. An efficient management methodology is to view a construction supply chain as an integrated system, and to apply system engineering techniques to increase coherence of the supply system. The modern information technology fosters the integration of construction project information processes by facilitating the construction information flows, and communication for construction participants. The traditional construction supply chain could not be well controlled or administrated since there are abundant barriers such as conflicting attitudes among clients, general contractors, and subcontractors. Modern information technology, for example the internet technology, has thoroughly changed the traditional construction industry and has brought a revolution in transaction practices. The communication based on internet technology is making information flow simple, fast, accessible, and accurate, and is changing the traditional construction industry [4]. This paper presents an overview of applying a system engineering approach to build a model for supply chain integration in construction. In particular the paper focuses on the communication improvement in the integrated construction supply chain so that construction productivity and performance could be improved. 2 Construction supply chain integration 2.1 Supply chain and communication The organizations may increase their resources and capabilities by coordinating their strategies, 10
resources and competencies in network-like structures. These networks depend on achieving mutually beneficial relationships, which embrace dimensions of trust, relationship stability, relationship longevity, and shared inter-organizational purpose. Supply chain is such a network that it is used to define the process that involves complex links among interconnected supply entities. A supply chain can be viewed as a dynamic network of interdependent organizations that can collaborate more efficiently to satisfy specific needs of a given customer. Therefore, the fundamental benefit of a supply chain would be the cooperation and collaboration among project partners. A supply chain is generally associated with inter-organizational communications which is leading to reduction of all time delays in services and information flows. Efficient information flows provide the potentials to reduce production and delivery time and errors, and to enhance customer service. A core issue in a supply chain is the effective management of information, both in the form of information flows that permit quick inter-organizational transactions between partners, and in the form of information accumulated in an organization. If the information is available to any party in the chain, alignment problems can be effectively faced. Therefore, planning and logistical integration throughout the supply chain requires centralized coordination of key data (drawings, specifications, instructions, order forecasts, production plans and delivery schedules). Performance improvements in the supply chain are central to making timely and cost effective investments in civil infrastructure. Projects must become less expensive, faster, and, just as important, more predictable in their schedule and scope. A conceptual model of a project supply chain is shown in Figure 1. Several subcontractors work on a project, and each subcontractor is served by one or more suppliers. s in turn can be served by one or more sub-suppliers, and so on. While supply chain composition will vary from project to project, any given project may have hundreds of firms involved in the supply chain. Subcontractor Subcontractor Project Activity Precedence Network Figure 1: Conceptual representation of the construction supply chain 2.2 Construction supply chain Construction is a comprehensive and integrated process which involves multi organizations such as clients, architects/engineers, general contractors, subcontractors, suppliers, consultants, and etc. Construction is also a multi phase process which can be divided into project decision and concept phase, design phase, construction and implementation phase, maintenance phase, and demolishment phase. Construction participants are also called construction teams or organizations those are unique entities, created through a complex integration of abilities, with interdisciplinary information and knowledge, responsibilities, and objectives. Communication is crucial in construction management since information share among construction participants will lead to minimize errors, reduce time delays and reworks. Collaboration will facilitate more effective procurement of construction materials and services than those traditional project delivery systems, and working relationships between and within construction organizations are well known. Construction supply chain consists of the construction lifecycle processes and all construction participants, the construction lifecycle processes are from the decision and concept phase, design phase, construction/implementation phase to transfer phase, maintenance phase, and demolishment of the 11
engineering, and all construction participants are those organizations which are involved in the construction lifecycle processes, such as the clients/owners, architects/engineers, general contractors, subcontractors, suppliers, and consultants. Construction supply chain is a network of multi organizations whose performances are depend on the comprehensive information flow among clients, architects/engineers, general contractors, subcontractors, suppliers, and consultants, and the solid material flow of materials, services and products. Construction supply chain with project participants is shown in Figure 2. Clients Architects /Engineers Construction Supervisors General Property Managers s Sub Manufacturers Figure 2 Construction supply chain with project participants 2.3 Construction supply chain management Supply chain management is originated from the manufacture industries and it is relevant to recent innovation such as just-in time (JIT), total quality management (TQM), and lean manufacture. Supply chain management can be defined as a comprehensive philosophy to manage the integrated flows of the entire operation process, and cooperative and systematic management strategy is the core philosophy of supply chain management. Construction supply chain management can be defined as an integrated system of construction processes which covers the construction lifecycle phases from the project decision, design, implementation, to transfer and maintenance, and involves the whole project participants including client, architects/engineers, general contractors, subcontractors, suppliers and consultants. Construction supply chain management focuses on how to utilize the construction project management processes, technology and capability to improve management performances. It is a management philosophy that integrates individual activities from the systematic view by bringing every partner together with the project ultimate goal which is optimized and efficient. 3 Construction information and communication 3.1 Construction project information Construction project information is usually considered as the processed data, and it is the data that enables effective action. Project information exchange among clients, architects/engineers and contractors has been mainly based on paper documents traditionally. These construction documents come in the form of drawings, specifications, bills of quantities, and materials. It was revealed that that nearly two-thirds of the construction problems were caused by inadequate exchange of information, and inefficient communication. Modern information technology and communication technology are regarded as the most important topic in the future in the construction industry. Until the very recent past, it would have been inconceivable to control and direct information flow electronically in construction. Documents can be produced and transmitted instantaneously by digital transmission at fractions of their previous costs. Electronic internet-based construction data permits computers and information systems to communicate directly with other computers, strengthening collaborative operations among organizations. The effectiveness of information technology in a construction project is obstructed by the inability to share electronic data between construction participants. Because of the massive numbers of documents involved in a construction project, it is necessary to adopt supply chain management 12
integration in construction along with partnering and total quality management. Construction project partners should develop an enabling structure and an efficient communication system for effective relationship management as part of project management. An integrated communication system for construction supply chain management is shown in Figure 3. Architects Material s A Equipment s B Structure Engineers Electric Engineers Other Engineers Design Firms General Contractor Client Deputies/ Consultants Specialisitc Civil Subcontractors Equipment Subcontractors Other Subcontractors Labor s I Material s II Equipment s III Figure 3 An integrated communication model for construction supply chain 3.2 Information flow involving drawings Transmittal of drawings is a critical task for construction activities. Construction information flow involving drawings is usually from designer to user. It is the most important for construction partners to get the right information in the form of drawings on time. Internet-based information and document system facilitates information flow among all construction project participants. The availability of a Internet-based system has provided participants with a readily accessible transmission medium for drawings and they have used it considerably. One of the cost advantages of a Internet-based information management system is the minimization of the costs of printing and transmitting drawings. Costs of drawing production and transmittal are a substantial identifiable cost item in any construction cost budget. These costs are well recognized as tending to increase dramatically as the number of project participants increases. Besides savings in standard operating costs, time requirements of transferring design information were significantly decreased. Construction drawings as well as construction information are so important for construction management that drawings should be transmitted efficiently among all participants in construction supply chain. Since construction information is very special in flow management, architects and contractors can use 3D or 4D CAD models to optimize information flow and communication. Construction participants could develop visual models detailed enough to be used by any other project participants (cost planners, structural engineers and façade contractors) to estimate cost accurately, resolve design issues and generate cutting templates, thus reducing significant amount of time by avoiding intensive rework. 3.3 Internet-based Construction communication With the help of the Internet-Based Construction Collaboration Model, construction projects are being managed far more efficiently in regards to time and expense than ever before. Construction participants can recoup the cost of the service in most cases rather quickly. The internet-based construction communication model has made an indelible mark on the way owners, architects and contractors work in partnership to complete projects on time and within budget. There are many internet-based construction communication tools, and one of them is Autodesk Buzzsaw. Buzzsaw incorporates a number of sophisticated reporting, task assignment and project 13
tracking features for active, real-time project management, and all participants can be assigned different permissions when they communicate with each other in the project, an example is shown in Figure 4. Construction project participants can track project status on the basis of individual team members and generate customized reports that leverage critical information to deliver valuable insight into construction projects. These features help all partners promote precise communication and more efficient project management, regardless of location. Design Firms Installers Owners Business Process Automation Administrators Team Communication Buzzsaw Online Collaboration Cost Engineer Document Management Labors s Civil Supervising Engineer Sub Figure 4 Internet- based Communication by Buzzsaw in construction supply chain Buzzsaw provides enhanced control over construction processes and improved collaboration for all participants during design, bidding, procurement, and construction. All of project documents, including design drawings, bid documents, construction RFIs, submittals, and meeting minutes, are centralized for easy access at any time only if the web servers are maintained well. All construction participants get the right information at the right time. Having the entire construction participants working on Buzzsaw enables consistency across the board, saves printing and distribution costs, reduces the need for travel, and lowers the incidence of planning and construction errors attributable to outdated information. 4 Conclusion This paper has presented a communication improvement model of internet-based technology in supporting project-based construction supply chain. Construction information which are the most important for construction management has been analyzed systematically, and it is emphasized that traditional construction drawings in the form of papers should be changed into the electronic form. Tangible and intangible benefits from construction supply chain that were achieved have been presented. The internet-based information system needs to be viewed in the context of its wider impact in construction processes, and communication implementation through supporting applications is carried out in internet collaboration tools. The paper demonstrates that electronic construction information flow could fundamentally change the nature of inter-organizational relationships by improving communication in the integrated construction supply chain system. Improved communication is a key organizational requirement for better performance of each participant in the construction supply chain integration and construction process management to achieve a win-win outcome. References [1] Ci Anumba. Integrated systems for construction: challenges for the millennium, Proceedings of the International Conference on Construction In formation Technology, Hong Kong, 2000:78-92. [2] G. Aouad, and M. Alshawi. Priority topics for construction information technology, Journal of Construction In formation Technology, 1996, 4(2): 45-66. [3] A. Cox, and I. Thompson. Fit for purpose contractual relations: determining a theoretical framework 14
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