Towards a Framework for Process Mapping and Performance Measurement in Construction Supply Chains

University dissertation from Linköping : Linköping University Electronic Press

Abstract: The purpose with this study is to develop a framework for process mapping and performance measurement in construction supply chains. This is done as current literature suggest that many of the problems that cause the cost- and time overruns in construction can be mitigated by implementing supply chain management (SCM) principles. For example, temporary organisations, fragmentation, etc. can affect the time and cost as work and information among members easily are delayed and even distorted. It is also recognised by many authors that planning the construction work and logistics often are tainted with synchronisation and coordination problems between supply chain members. It is deemed necessary with a framework for mapping logistic activities and measuring supply chain performance. Up until now, there exists no framework for mapping the whole construction supply chain and measuring its performance, that encompasses the whole chain from raw material to the finished building.As stated above, the purpose with this thesis is to develop such a framework. In order to do so an existing framework is used as a basis, the Supply Chain Operations Reference (SCOR) model. The SCOR model consists of five process groups (Plan, Source, Make, Deliver, and Return) hierarchically structured in three levels and some 500 predefined performance metrics. This framework is proven fruitful in other industries but it is also proven by other authors in the field suitable as a basis for a construction adapted version. Other frameworks do exist, but none of these are as comprehensive as the SCOR model. Resent research also suggests that the SCOR model is possible to adjust to unique industry settings. It is identified in this study that the SCOR model has to be adapted to the characteristics of the construction industry. Therefore, the framework presented in this thesis is developed via adaption of the SCOR model to the characteristics of the construction industry. In doing so, a total of four research objectives corresponding to the process groups in the SCOR model are considered for adapting the SCOR model. The Return process, however, is not included in this thesis.Objective 1. Adapt the SCOR model’s Deliver process to the characteristics of the construction industry.Objective 2. Adapt the SCOR model’s Source processes to the characteristics of the construction industry.Objective 3. Adapt the SCOR model’s Make processes to the characteristics of the construction industry.Objective 4. Adapt the SCOR model’s Plan processes to the characteristics of the construction industry.The main method utilised in the study is case study research. The results are derived from a total of three case studies. The SCOR model is applied to the cases as it is. Through observing how suitable the framework is for the industry the four aforementioned objectives are addressed. Except from direct observations (with time measurements), other data gathering methods utilised are questionnaires and interviews.The adapted version of the SCOR model is entitled the Builder’s SCOR model (BSCOR). Findings from the studies indicate that necessary changes to the SCOR model concerns how the material flow in the processes are separated. The SCOR model suggests separating materials based on type of end product (e.g. Make-to-Stock – MTS, Make-to-Order – MTO, or Engineer-to-Order – ETO character). In the BSCOR model, the flow of materials are separated based on who orders them (the main contractor or any of the subcontractors), rather than type of material. The BSCOR model also suggests how the planning process should be organised in order to overcome coordination issues. Finally, one measurement included in the BSCOR model is to keep track of whether an incoming delivery of construction materials is notified in time. An order is not perfectly delivered if it is not notified in time.One managerial contribution with the study is a framework for mapping supply chain activities and measuring supply chain performance. The framework also offers the ability to measure how the supply chain of a company performs compared to other companies’ supply chains. The study contributes to the academia as it fills the gap of a lack in frameworks suitable for mapping and measuring construction logistics. It also contributes in reporting on the current logistics status in the construction industry.

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