Developing a framework for supply chain planning in construction

Supply chain management (SCM) has been stressed as a remedy to many of the underlying issues in the construction industry. However, the positive examples where SCM has been successfully utilised and diminished the lingering issues in construction is scarce. The question is why. Previous studies have stressed the importance of planning both the construction project as such but also the supply chain and the logistics. As an important part of SCM, supply chain planning (SCP) focuses on planning different aspects of the supply chain through involving different members of the supply chain in the planning process. SCP in construction is scarce as the planning of the logistics in general. Failing to plan the supply chain, involving supply chain members in the planning, and integrating the processes of planning the supply chains and the construction project can be one reason for the low numbers of successful SCM adoption in construction. In improving the SCP in construction, this thesis develops a SCP framework for construction that involves the main contractor, subcontractors, and suppliers. The aim is to improve SCP, collaboration, and eliminate many of the common problems in construction through a SCM and SCP perspective. The developed framework is based on an existing planning framework for sales and operations planning. This framework is generic and synthesises planning in general. It consists of identifying/developing: outcomes, input, organisation, process, key performance measurements, and IT-tools. It is thus necessary to investigate what these aspects means in a construction context. Four research objects will be fulfilled:Objective 1. Identify common logistical problems and linkages between themObjective 2. Develop a SCP processObjective 3. Develop a SCP organisationObjective 4. Identify performance measurementsThe first objective will aid in focusing the work with developing the framework as one aim of the framework is to aid in eliminating common logistical problems. In doing so it is needed to identify what problems exist and how the SCP framework can aid in overcoming them. The second and third objective focus on developing the framework in terms of developing a planning process (procedure) and an organisation for developing the plans. These two also includes identifying outcomes of SCP and important inputs. The final objective focus on suggesting important performance measurements for aiding in the planning process. Several different studies have aid in fulfilling the objectives and the purpose. A case study, literature review, and a series of interviews aided in fulfilling objective 1. The interview series and focus groups were used for fulfilling objectives 2 and 3. Objective 4 used the results from the case study. Through logical reasoning and compiling the previous works made it possible to finalise and develop the framework. Findings indicate that common logistical problems can be categorised as: material flow issues, internal company communication, project communication, and complexity. The first one contains problems with e. g. delivery reliability, material flows, and inventories. Company communication regards problems with e. g. sharing information internally, not updating plans, and not understanding the construction process. Project communication is similar but concerns the issues with e. g. sharing and updating plans with subcontractors and suppliers. The final one regards different type of problems that all concerns the complex nature of projects like: late changes, site layout, and lack of standard processes. These problems are often inter-linked and locate in different planning levels. This means that different managers should work with different problems and the site manager should not be responsible for all of them. The framework consists of the two processes, one pre-construction process and one on-site process. The first one focuses on developing a material delivery schedule (an important outcome) through involving the main contractor, subcontractors, and suppliers early in the project. The latt r one focuses on updating the plan both in short-terms but also on a longer horizon on-site. Four meetings are identified as necessary, two in the pre-construction phase (Pre-construction subcontractor meeting and Purchase meetings) and two in the on-site phase (Weekly update meetings and Supplier start-up meetings). The main contribution of the thesis is the framework as such with a process and organisation for developing a material delivery schedule. Due to the fact that in involves members of the supply chain and activities early in the project improves the integration of the supply and construction process. The thesis also aids in providing information on how SCP can address common logistical problems in construction and how trust can be improved. The thesis also gives rise formulating propositions to be tested in future studies.