Successful Construction Supply Chain Management Concepts and Case Studies

Provides a unique overview of supply chain management (SCM) concepts, illustrating how the methodology can help enhance construction industry project success

This book provides a unique appraisal of supply chain management (SCM) concepts brought together with lessons from industry and analysis gathered from extensive research on how supply chains are managed in the construction industry. The research from leading international academics has been drawn together with the experience from some of the industry's foremost SCM practitioners to provide both the experienced researcher and the industry practitioner a thorough grounding in its principles, as well as an illustration of SCM as a methodology for enhancing construction industry project success.

The new edition of Successful Construction Supply Chain Management: Concepts and Case Studies incorporate chapters dealing with Building Information Modelling, sustainability, the ‘Demand Chain' in projects, the link between self-organizing networks and supply chains, decision-making, ‘Lean,’ and mega-projects. Other chapters cover risk transfer and allocation, behaviors, innovation, trust, supply chain design, alliances, and knowledge transfer.

• Supply Chain Management techniques have been used successfully in various industries, such as manufacturing and food processing, for decades
• Fully updated with new chapters dealing with key construction industry topics such as BIM, sustainability, the ‘Demand Chain' in projects, ‘Lean,’ mega-projects, and more
• Includes contributions from well established academics and practitioners from Network Rail, mainstream construction, and consultancy
• Illustrates how SCM methodologies can be used to enhance construction industry project success

Successful Construction Supply Chain Management: Concepts and Case Studies is an ideal book for postgraduate students at MSc and PhD level studying the topic and for all construction management practitioners.

STEPHEN PRYKE, FRICS, MSc, PhD, PGCertEd, DipS, MCMI, is Professor of Supply Chain and Project Networks, and Course Director of the MSc Project and Enterprise Management at the Bartlett School of Graduate Studies, University College London. He is also Director of Postgraduate Teaching and Learning at the Bartlett School of Graduate Studies, UCL and Director of the Centre for Organisational Network Analysis (CONA@UCL). Stephen worked closely with the leading exponents of supply chain management worldwide before joining UCL full time. He previously provided project management training and consultancy to a number of major European companies and has been a consultant with Durland Consulting in Chicago. His main research interests involve supply chain management and the application of social network analysis in the study of construction project networks.

List of Contributors xv

Preface xxi

Acknowledgements xxiii

1 Introduction 1
Stephen Pryke

1.1 Overview: Part A 2

1.1.1 IT, Digital, and BIM 2

1.1.2 Self-Organising Networks in Supply Chains 2

1.1.3 Green Issues 3

1.1.4 Demand Chains and Supply Chains 4

1.1.5 Lean 5

1.1.6 Power Structures and Systemic Risk 5

1.1.7 Decision-Making Maturity 6

1.2 Overview: Part B 7

1.2.1 Lessons from Megaprojects 7

1.2.2 Collaboration and Integration 8

1.2.3 Lesson Learned and Findings from Tier 1 Contractors 8

1.2.4 Lean Practices in The Netherlands 9

1.2.5 Knowledge Transfer in Supply Chains 10

1.2.6 The Role of Trust in Managing Supply Chains 10

1.3 Summary 11

References 11

Part I Chapters that Principally, but not Exclusively, Deal with Concepts and the Development of Theory 13

2 The Digital Supply Chain: Mobilising Supply Chain Management Philosophy to Reconceptualise Digital Technologies and Building Information Modelling (BIM) 15
Eleni Papadonikolaki

2.1 Introduction 15

2.2 The Nature of Construction 17

2.2.1 Addressing Existing Complexity and Fragmentation in Construction 17

2.2.2 Advancements from Other Industries Applicable to Construction 17

2.2.3 Potential Synergies Between Supply Chain Management and Digitisation 19

2.3 Origins and Development of Supply Chain Thinking in AEC 20

2.3.1 The Emergence of Supply Chain Thinking from Operations and Logistics Research 20

2.3.2 The Adaptation of Supply Chain Management Concepts in AEC 21

2.4 Pragmatic Impact of Supply Chain Thinking in Construction 22

2.4.1 Supply Chain Thinking Schools 22

2.4.2 Supply Chain Concepts and Varying Interpretations 23

2.5 Origins and Development of Digitisation in the Built Environment 23

2.5.1 Development of Digital Capabilities in the Built Environment 23

2.5.2 From Building Product Models to Building Information Modelling (BIM) 25

2.5.3 Importance of Standards in a Digital Built Environment 25

2.5.4 Pluralism of Digital Artefacts and BIM Maturity Assessment Methods 26

2.6 Pragmatic Impact of Digitisation and BIM 28

2.6.1 BIM and the Enterprise: Bottom-Up Adoption 28

2.6.2 BIM and the Institutional Setting: Top-Down Diffusion 28

2.6.3 Mismatch Between Top-Down and Bottom-Up Strategies 29

2.7 Synthesis of Digital Technologies Construction Supply Chain 30

2.7.1 Potential and Outlook of Digital Technologies to Support Supply Chains 30

2.7.2 Co-Evolution of Supply Chain Management and Digital in AEC 31

2.8 Conclusion 32

References 34

3 At the Interface: When Social Network Analysis and Supply Chain Management Meet 43
Huda Almadhoob

3.1 Introduction 43

3.2 Reconceptualising Supply Chains 44

3.3 Supply Networks as Complex Adaptive Systems 45

3.4 What Is Social Network Analysis? 50

3.5 Rationale for a Network Approach 52

3.6 Key Challenges in Conducting Social Network Analysis 54

3.7 Conclusions and Directions for Future Research 55

3.8 Managerial Implications 56

References 57

4 Green Supply Chain Management in Construction: A Systematic Review 63
Niamh Murtagh and Sulafa Badi

4.1 Introduction 63

4.1.1 Environmental Impact of Construction 64

4.1.2 Definition 65

4.2 Research Methodology 66

4.2.1 Stage 1: Define Eligibility Criteria 66

4.2.2 Stage 2: Define Search Terms 67

4.2.3 Stage 3: Search, Screen, and Compile List of Included Papers 67

4.2.4 Stage 4: Code and Critically Evaluate Included Studies 67

4.2.5 Stage 5: Formulate Synthesis 68

4.3 Analysis 68

4.3.1 Research Interest over Time 68

4.3.2 Source Journals 68

4.3.3 Geographic Spread 69

4.3.4 Methods 69

4.3.5 Tools and Techniques 72

4.3.6 Stakeholders 73

4.3.7 Definitions of Green Supply Chain Management 74

4.4 Discussion 75

4.4.1 Overview 75

4.4.2 Definition 75

4.4.3 Nature of Construction 76

4.4.4 Stakeholder Roles 77

4.4.5 Practical Recommendations 77

4.5 Looking to the Future 78

4.6 Conclusion 80

References 81

5 Connecting the ‘Demand Chain’ with the ‘Supply Chain’: (Re)creating Organisational Routines in Life Cycle Transitions 87
Simon Addyman

5.1 Introduction 87

5.1.1 The Temporal Paradox in Temporary Organising 89

5.2 The Construction Industry – Procurement and Relational Difficulties 90

5.3 Temporary Organisations and the Project Life Cycle 92

5.4 Routines and the Capability of Projects 95

5.5 A Recursive Process Model of Transitioning 98

5.6 Discussion 101

5.7 Summary 103

References 104

6 Construction Supply Chain Management through a Lean Lens 109
Lauri Koskela, Ruben Vrijhoef and Rafaella Dana Broft

6.1 Introduction 109

6.2 Theoretical and Philosophical Grounding of Lean 110

6.2.1 Theoretical and Philosophical Grounding of the Mainstream Approach to Production Management 110

6.2.2 Theoretical and Philosophical Grounding of Lean 111

6.2.2.1 Theory of Production 111

6.2.2.2 Epistemology of the Lean Concept 112

6.2.2.3 Ontology of the Lean Concept 112

6.2.3 Implications for Management and Organising 113

6.3 Theoretical Background and Characterisation of Supply Chain Management 114

6.3.1 Production Perspective 114

6.3.2 Economic Perspective 115

6.3.3 Organisational Perspective 116

6.3.4 Social Perspective 116

6.4 Analysis of Supply Chain Approaches and Conceptualisations through a Lean Versus Mainstream Lens 117

6.5 Contingency of Supply Chain Management in Construction through a Lean Lens 118

6.5.1 Construction from a Production Perspective 119

6.5.2 Construction from an Economic Perspective 119

6.5.3 Construction from an Organisational Perspective 119

6.5.4 Construction from a Social Perspective 121

6.5.5 A Crossover of Supply Chain Management and Lean in the Context of Construction 121

6.6 Discussion 121

6.7 Conclusion 122

References 122

7 Supply Chain Management and Risk Set in Changing Times: Old Wine in New Bottles? 127
Andrew Edkins

7.1 Introduction and Overview 127

7.2 The Collapse of Carillion: Consequences for Consideration – Implications for Construction Supply Chains 129

7.3 Risk, Power Structures, and Supply Chains 132

7.3.1 Commercial Power and the Role of Law and Regulation 133

7.3.2 Technology-Based Power Structures: Cases of Construction Waste and BIM 135

7.4 Conclusions 139

References 140

8 Linkages, Networks, and Interactions: Exploring the Context for Risk Decision Making in Construction Supply Chains 143
Alex Arthur

8.1 Introduction 143

8.2 The Evolution of the UK Construction Industry and Supply Chain Relationships 144

8.3 The Concept of Risk 147

8.3.1 Uncertainty 149

8.3.2 Probability 150

8.3.3 Risk as a Potential Future Event 150

8.3.4 The Impact of a Risk Event on an Objective or Interest 150

8.4 The Construction Risk Management System 150

8.4.1 Risk Identification Subsystem 152

8.4.2 Risk Analysis Subsystem 153

8.4.3 Risk Response Subsystem 153

8.5 Risk Generation in Construction Supply Chain Relationships 154

8.5.1 Project Risk Events Generated through the Project Delivery Processes 154

8.5.2 Project Risk Events Generated through the Network and Interactions within Construction Supply Chain Relationships 155

8.6 Risk Management Decision-Making Systems in Construction Supply Chain Relationships 156

8.7 Conclusion 159

References 161

9 Culture in Supply Chains 167
Richard Fellows and Anita Liu

9.1 Introduction – Context 167

9.2 Culture 170

9.3 Dimensions of Culture 173

9.3.1 National Culture 174

9.3.2 Organisational Culture 176

9.3.3 Fitting with Other Cultures 180

9.3.4 Organisational Climate 182

9.3.5 Project Atmosphere 182

9.3.6 Behaviour Modification 183

9.4 Values and Value 183

9.5 Ethics 185

9.6 Organisational Citizenship Behaviour (OCB) and Corporate Social Responsibility (CSR) 187

9.7 Teams and Teamwork 188

9.8 Sensemaking 189

9.9 Motivated Reasoning 190

9.10 (Strategic) Alliances 192

9.11 Supply Chain Participants and Behaviour 194

9.12 Conclusion 199

References 201

Part II Chapters that Principally, but not Exclusively, Deal with Case Study Material 211

10 Managing Megaproject Supply Chains: Life After Heathrow Terminal 5 213
Dr Juliano Denicol

10.1 Motivation for the Research 213

10.2 Construction Supply Chain Management 214

10.2.1 Temporary vs Permanent Supply Chains (ETO vs MTS) 217

10.3 Why Are Megaprojects So Important? 221

10.4 Megaproject Supply Chain Management 223

10.5 Conclusion 228

References 231

11 Anglian Water @one Alliance: A New Approach to Supply Chain Management 237
Grant Mills, Dale Evans, and Chris Candlish

11.1 Introduction 237

11.2 Supply Chain Management 238

11.3 Alliance Supply Chain Management 239

11.4 Anglian Water Alliance Case Study 240

11.4.1 Strategic Approach to Alliance Supply Chain Management 240

11.4.2 Alliance Supply Chain Work Clusters 241

11.4.3 Alliance Supply Chain Early Involvement and Collaboration 242

11.5 Evaluation of the Value of Alliance Supply Chain Management 244

11.5.1 Strategic Approach to Alliance Supply Chain Management 244

11.5.2 Alliance Supply Chain Management Provides an Effective Environment for the Early Engagement of Specialist Suppliers 244

11.5.3 Alliance Supply Chain Management Can Create a Win-Win-Win Reciprocal Relationship 245

11.5.4 Alliance Supply Chain Management Can Drive Team Innovation and Create New Service Relationships 245

11.5.5 Long-Term Approaches to Alliance Supply Chain Management Can Drive Strategic Business Benefits 246

11.5.6 Alliance Supply Chain Management that Uses Advanced Production Systems Can Deliver Tactical Benefits 246

11.6 Conclusions 246

References 247

12 Understanding Supply Chain Management from a Main Contractor’s Perspective 251
Emmanuel Manu and Andrew Knight

12.1 Introduction 251

12.2 Multilayered Subcontracting in the Construction Industry 252

12.3 Supply Chain Management: Principles and Practices 254

12.4 Supply Chain Management Practices from a Contractor’s Perspective 256

12.5 Case Study of a Large UK Main Contractor 257

12.5.1 Supply Chain Management Goals 258

12.5.2 Supply Chain Management Team 259

12.5.3 Supply Chain Management Classification 260

12.5.4 Supply Chain Management Practices 261

12.5.4.1 Audit Supply Chain Firms 261

12.5.4.2 Use Collaborative ICT Systems 263

12.5.4.3 Measure Performance of Supply Chain Firms 263

12.5.4.4 Engage in Continuous Performance Improvement Activities 264

12.5.4.5 Develop Long-Term Collaborative Relationships 264

12.5.4.6 Motivate and Incentivise the Supply Chain 265

12.6 Conclusion 265

References 267

13 Lean Supply Chain Management in Construction: Implementation at the ‘Lower Tiers’ of the Construction Supply Chain 271
Rafaella Dana Broft

13.1 Supply Chain Management in a Project-Based Environment 271

13.1.1 The Supply Chain Management Concept 271

13.1.2 The Project Focus in Construction 272

13.1.3 The Lower Tiers of the Construction Supply Chain 273

13.1.4 A Main Contractor’s Position and Role in the Construction Supply Chain 274

13.2 The Characteristics of Construction 275

13.2.1 Construction from a Production Perspective 275

13.2.2 Construction: True Peculiarities?! 277

13.3 Lean Supply Chain Management in Construction 279

13.3.1 An Introduction to Lean 279

13.3.2 The Role of Lean in Combination with Supply Chain Management 280

13.3.3 Lean and Supply Chain Management in Construction 281

13.4 Conclusion 283

References 283

14 Knowledge Transfer in Supply Chains 289
Hedley Smyth and Meri Duryan

14.1 Introduction 289

14.1.1 The Supply Chain Issue 290

14.1.2 Learning and Knowledge Transfer 291

14.2 What Is Known – A Summary Review of the Literature 292

14.2.1 The Supply Chain Ecosystem 292

14.2.2 Supply Chain Learning and Knowledge Management 293

14.2.3 Prequalification and Bidding Processes 294

14.3 Methodology and Methods 295

14.4 Findings 296

14.5 Conclusions 301

References 302

15 Understanding Trust in Construction Supply Chain Relationships 307
Jing Xu

15.1 Introduction 307

15.2 Towards an Understanding of Trust in Construction Supply Chains 308

15.2.1 Towards a Service-Dominant Logic View 308

15.2.2 Towards a Process-Based View 311

15.3 Methodology and Methods 314

15.4 Case Study 315

15.4.1 Context 316

15.4.1.1 Assessing the Shadow of the Past 316

15.4.1.2 Organisational Structure and Policy: Forming a Sense of Unfairness 316

15.4.2 Procurement and Preconstruction Stage 318

15.4.2.1 Early Involvement: Forming a Sense of Security and Familiarity 318

15.4.2.2 Two-stage Procurement: Creating a Sense of Equity 318

15.4.2.3 The Value of Trust 319

15.4.3 Execution Stage 320

15.4.3.1 Structuring the Project: Maintaining Security and Familiarity 320

15.4.3.2 Joint Activities: Forming the Interpretations of Trustworthiness 320

15.4.3.3 Using Trust Relations in Resource Coordination: Bounded Solidarity and Economic Reciprocity 321

15.4.3.4 The Value of Trust 322

15.4.4 Completion Stage 323

15.4.4.1 Stabilising the Relationship: Trust as a Rule of Legitimation 323

15.4.4.2 The Shadow of the Future: Social Reciprocity 323

15.4.4.3 The Value of Trust 323

15.5 Discussion 324

15.5.1 The Constitution of Trust 324

15.5.2 The Value of Trust 326

15.5.3 Conditions of Trust: Influences of Ecosystems and Time 326

15.6 Conclusions and Recommendations 328

References 329

16 Summary and Conclusions 335
Stephen Pryke

16.1 Context –What’s the Problem? 335

16.2 A Summary of the Contributions 336

16.2.1 IT, Digital, and BIM 336

16.2.2 Self-Organising Networks in Supply Chains 336

16.2.3 Green Issues 337

16.2.4 Demand Chains and Supply Chains 337

16.2.5 Lean 337

16.2.6 Power Structures and Systemic Risk 337

16.2.7 Decision-Making Maturity 338

16.2.8 Culture 338

16.2.9 Lessons from Megaprojects 338

16.2.10 Collaboration and Integration 339

16.2.11 Lesson Learned and Findings from Tier 1 Contractors 339

16.2.12 Lean Practices in The Netherlands 340

16.2.13 Knowledge Transfer 340

16.2.14 The Role of Trust in Managing Supply Chains 341

16.3 Key Themes and Agendas for Research and Practice 341

16.3.1 Complexity and Interdependence 341

16.3.2 Work Packages 341

16.3.3 Resistance to Change 342

16.3.4 Risk 342

16.3.5 Communications and Integration of Systems and the Green Agenda 343

16.3.6 The Role of the Contractor 343

16.3.7 The Role of the Client 343

16.3.8 Lean Construction 343

16.3.9 Collaborative Behaviour and Quality of Relationships 344

16.4 Final Remarks 344

References 344

Index 347

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