Amiri Ara, R; Paardenkooper, K and van Duin, R (2022) A new blockchain system design to improve the supply chain of engineering, procurement and construction (EPC) companies: a case study in the oil and gas sector. Journal of Engineering, Design and Technology, 20(4), pp. 887-913. ISSN 1726-0531
Abstract
Purpose: This paper aims to propose a new blockchain system design to improve engineering, procurement and construction (EPC) companies' supply chain for constructing oil and gas infrastructure, by mitigating cost and time inefficiencies. Design/methodology/approach: A case study analyses the supply chain of a sample EPC company. First, a literature review is conducted to explore the subject in academic literature. Second, information flows are mapped using responsible, accountable, consulted and informed analysis and cross-functional process mapping. Third, inefficiencies are identified. Fourth, the root causes of the inefficiencies are pinpointed using fishbone and five-times-why analysis. Fifth, a comparison is made between the linear and the blockchain information system via force-field analysis. Sixth, a specific blockchain system design is identified based on three external expert interviews. Finally, the new system is designed and a cost-benefit analysis is conducted. Findings: Major cost and time inefficiencies in oil and gas infrastructure developments are caused by a poor information flow in the supply chain. The new blockchain system design is a feasible solution, reducing cost inefficiencies by 12.4% and operation lead-times by 36.5%. Research limitations/implications: The confidentiality of the sample EPC company’s information represents a limitation. Originality/value: The research introduces a new blockchain system design, reducing cost and time inefficiencies in the project-development supply chain, including implementation processes.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | blockchain; epc company; iot; oil and gas; smart contract; system design |
| Index terms: | mapping, methodology, confidentiality, information system, interview, literature review, information flow, infrastructure development, oil and gas, implementation, smart contract, blockchain, case study |
| Subjects: | information systems, industry analysis, professional ethics, spatial and geospatial analysis, research methods, infrastructure engineering, digital technology, contractual arrangements, data analysis and analytics, data collection methods, computing systems |
| Topics: | Digital Applications, Legal Issues, Procurement, Engineering Principles, Research Practice |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here