chapter 5 status quo of current construction …status quo of current construction practices 5.1...

Chapter 5

STATUS QUO OF CURRENT CONSTRUCTION

PRACTICES

5.1 Introduction

This chapter presents the outcomes of an investigation into the status quo of the current

construction practices for the purpose of generating scenarios of the future construction

supply chain management (CSCM). The investigation involved finding out the magnitude

of which technology is being used in construction sites and the industry’s readiness to

adopt new technology through a researcher-administered questionnaire survey. Case

studies were conducted to investigate into the current construction logistics practices,

problems encountered, utilisation of ICT tools and the possibility of using digital

technologies such as Wi-Fi tags and Personal Digital Assistant (PDA) for managing

construction project activities. The need for a context-aware system for logistics services

management was also investigated.

Eight construction practitioners participated in both the survey and case studies involving

questionnaire and in-depth face-to-face semi-structured interviews. The results of these are

presented in the following sections. For case studies, the cases are first presented

individually and then comparisons made between them. Finally, the conceptual model of

the proposed context-aware system is presented based on the current logistics practices

discovered from interviews.

5.2 Survey

A survey was carried out among construction practitioners to learn the extent to which ICT

is being used in construction sites and to investigate the construction industry’s readiness

to adopt new technology. By learning these will give early indications as to how the

Context-Aware Services Delivery in the Construction Supply Chain

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proposed context-aware application for construction supply chain will be accepted by

construction practitioners.

5.2.1 Survey Objective

The objectives of the survey were to:

To analyse the level of IT facilities in the management of site logistics

To investigate the level of acceptance of using wireless communication and sensor

technology among construction practitioners

5.2.2 Questionnaire

To achieve the above objectives, a questionnaire was designed objectively to investigate

the level of acceptance of using wireless communication network technology in improving

logistics services within the construction supply chain network as a whole and the

magnitude of which technology was being used at construction sites. Relevant questions

relating to the use of communication and information tools, construction logistics services

and digital technologies were developed. This questionnaire utilised both closed and open-

ended questions. Respondents were asked to give ratings based on five-point Lickert scale

(e.g. 1 – unnecessary, 2 – somewhat unnecessary, 3 – neutral, 4 – recommended and 5 –

strongly recommended) for all listed items.

The questionnaire was divided into three parts, i.e. Q1, Q2 and Q3. Q1 dealt with the

general communication and information tools used/practiced on site. Respondents were

asked to tick the items if they observed it at their organisation and gave rating of their

recommendation of their usage/practice at site. They were also asked to indicate if there

were issues or problems encountered relating from or relating to the communication and

information tool. Q2 dealt with the logistics services at construction site and Q3 dealt with

the use of digital technologies. A copy of the questionnaire is provided in Appendix A.

5.2.3 Respondents

Eight respondents knowledgeable in construction as well as in dealing with logistics as

their main scope of works, therefore, deemed as experts, were selected. Among them were

a construction manager for a multi-storey building project in a busy traffic area, a logistics


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project manager for an airport project (high security area), a logistics technical director for

a project on a university campus and a project manager for a museum in a city centre.

Other respondents included a senior project manager, project manager, facilities manager

and contracts manager of various construction projects of various sizes in different

locations. Size of projects is not defined as it is not in the scope of this research.

5.2.4 Survey Process

During the early stage, the selected respondents were contacted and notified through email

and telephone to request their participation and co-operation in the research by supplying

the information needed. They were told that their personal information would be kept

confidential to ensure fidelity of the data. Appointments were made and the questionnaire

was e-mailed to them prior to the meeting. They were asked to peruse the questionnaire in

their free time so that they knew what was expected of them during the appointed meeting.

The researcher-administered questionnaire survey was conducted in each of the

respondent’s respective site office. They were all briefed on the overall questionnaire

before starting to fill in their answers. This had been done in order to ensure the validity

and reliability of the survey data. In addition, their answers were discussed for clarification

and/or to collect additional information, hence eliminate misunderstandings. This

questionnaire provided a basis for the ensuing face-to-face in-depth interview for each case

study.

5.3 Survey Results

The survey data were analysed based on the eight responses gathered by counting the

number of respondents (frequency) who had observed certain issues/tools at their

organisations and calculating the average score (out of 5) for their level of

recommendation for each issue/tool. The results from the questionnaire are presented in the

following sub-sections.

5.3.1 General Communication and Information Tools

This part of the questionnaire addressed the communication and information tools that

were observed to have been used by the construction organisation in their daily works or


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activities. This question was designed to identify the most common and least used tools for

communication and for conveying information in daily works. Table 5-1 shows the number

of observations and average scores for the level of recommendations from the respondents

on communication and information tools. The survey results show that all the respondents

had observed the following tools being practiced and used at their organisations: face-to-

face meeting, e-mail, telephone, plans and drawings, design specifications, scope of works

and Gantt chart. Consequently, they also rated these tools with high scores, i.e. either ‘5’

for ‘strongly recommended’ or ‘4’ for ‘recommended’. Not surprisingly, plans and drawing

received the rating ‘5’ from all the respondents. On the other hand, items or tools that were

seldom or never observed at their organisations, especially on construction sites, like video

conferencing, text messaging, multimedia messaging and facsimile were given low ratings,

i.e. either ‘1’ for unnecessary or ‘2’ for somewhat unnecessary’. On some items that they

were unsure or had no opinion of, some respondents gave the rating ‘3’ for ‘neutral’.

Table 5-1: Observation and Recommendation for Communication and Information Tools

General communication and information tools Number of

Observation Level of

Recommendation

Meetings (face-to-face) 8 4.75

Video conferencing 1 2.25

E-mail 8 4.63

Text messaging (SMS) 2 2.13

Multimedia Messaging (MMS) 0 2.13

Telephone 8 4.88

Facsimile 2 2.50

Plans and Drawings 8 5.00

Design specifications 8 4.50

Scope of works 8 4.75

Scheduling (Gantt chart) 8 4.75

In the same category of the questionnaire, the question asked about the issues/problem

encountered at the respondents’ organisations related to the use of communication and

information tools identified above. In this analysis, the column chart was selected to study

the pattern of the survey data. From the survey data shown in Fig. 5-1, it shows that

problems such as information not readily available, slow retrieval and limited sharing

stood out as the main concern. The others gave a cause for concern too. There was a mix of


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opinions for problems of documents being lost and culture/attitude problem when using the

existing communication and information tools.

Fig. 5-1: Problems encountered using existing communication and information tools

Other issues arising from communication and information tools were inaccurate as-built

drawings and the fact that some companies did not keep up with technology. Limited e-

mail size storage used to be a problem, but with the implementation of VPN (Virtual

Private Network), this was no longer the case. It had been remarked that video

conferencing was unusual at construction sites, while opportunities for SMS and MMS

were not explored therefore underutilised and it was unnecessary for information to travel

in real-time.

Recommendations for improvement include:

Implementation of appropriate communication system and procedures, e.g. web

management system for managing drawings, RFI and schedules and to ensure that

contractors and designers are competent to use them.

Use of smartphone, PalmPC or PDA with good software.

Issue mobile phones to workers.

‘Real’ collaborative working.

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5.3.2 Logistics Services at Construction Site

The second part of the questionnaire addressed the work planning, work implementation

and tracking and monitoring system practiced or used by construction organisations in their

work related activities. This question was designed to identify the most common and least

used tools for logistics services in their daily work. Table 5-2 shows the number of

observations and average scores for the level of recommendations from the respondents on

the work planning. From the survey result, it can be observed that material flow, materials

order and delivery, material handling and traffic flow were the main activities being

seriously looked into by the logistics personnel or construction management during the

planning and design stages. The planning of storage, machinery and equipment and

manpower supply were also frequently observed. Information flow and modes of

communication also received high scores.

Table 5-2: Observation and Recommendation for Work Planning

Work Planning Number of


Recommendation

Material orders and delivery 8 4.38

Material flow 8 4.88

Material handling 8 4.75

Information flow 6 4.00

Modes of communication 6 4.13

Storage 7 4.63

Traffic flow 8 4.75

Machinery and equipment 7 4.38

Manpower supply 7 4.63

In terms of work implementation at site, Table 5-3 shows that material delivery was

observed to be given the highest priority compared to other items but the importance of

work safety and health rules were observed equally. Construction activities and efficient

use of labour and equipment were mostly observed to be as planned. Similar to previous

cases, the level of recommendation closely follow the trend of the observation.


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Table 5-3: Observation and Recommendation for Work Implementation

Work Implementation Number of


Recommendation

Material delivery as scheduled 8 4.88

Minimization of material handling 6 4.63

Work safety and health rules 8 4.38

Construction activities as planned 7 4.75

Efficient use of labour and equipment 7 4.75

Relationship with supplier 5 4.38

For the use of tracking and monitoring system in logistics services, responses indicated that

monitoring or tracking of materials delivery, manpower, equipment and assets rarely

occurred and could be said to be mostly unnecessary on construction site as shown in

Table 5-4.

Table 5-4: Observation and Recommendation for Tracking and Monitoring System

Tracking and monitoring system Number of


Recommendation

Material delivery and handling 5 3.88

Mobile worker / manpower 3 3.63

Machinery, equipment and tools 4 3.75

Assets and inventory 4 3.75

Problems encountered in logistics services include information not readily available, not

aware of material delivery schedule, material delivery not according to schedule, delays,

resupply, double handling of materials, material damage, storage, transparency, security

and culture. From Fig. 5-2, it can be observed that the listed problems in logistics services

were mostly agreed with by all respondents. Site accessibility, material being misplaced,

tracking material and information inaccuracy were rated close second. However, for the

problems of tracking of mobile workers and plants, the respondents had divided opinions

regarding these occurring.

Some of the other logistics management tools named by the respondents were waste

management plan, procurement system, physical and manned security, fire safety and

patrols, manual handling assessment, BREEAM for local suppliers and materials

return/delivery sheet. It has been remarked that it was essential for contractors to organise


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and plan all logistics activities effectively and have contingency plan in place in case of

something unexpected. Ability to adapt to unplanned construction activities/events was

considered vital. Needless to say that it was also essential to understand construction

activities in order to plan for site logistics.

Fig. 5-2: Problems encountered in logistics services

There was a concern that some sites did not hire enough gatemen or security guards in

order to cut cost, also information about delivery schedule not being communicated to

these gatemen effectively.

Recommendations for improvement of logistics management include:

Employ reliable known contractors

Build up a relationship with regular suppliers

Encourage major material suppliers to see construction site

Understand and plan for material flow and material handling

Raise awareness of the benefits of ‘managed logistics’ throughout the industry

Raise awareness that logistics is not just for very large projects.

5.3.3 Digital Technologies at Construction Site

Tables 5-5 to 5-9 show the results of the third part of the questionnaire. This part dealt with

the digital technologies at construction site which include communication technology,

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communication device, tracking/monitoring technology and project management software.

The questions were designed to address the IT and wireless technology system that have

the potential of being used for logistics services. Respondents were asked to indicate

whether they observed the use of such technology at site, and to rate it with ‘1’ for ‘not

effective at all’ to ‘5’ for ‘very effective’. From Table 5-5 it can be observed that the use of

internet was observed by all the respondents, and it was also seen as the most effective way

of communicating compared with other wireless system network.

Table 5-5: Observation and Recommendation for Communication Technology

Communication technology Number of


Effectiveness

Internet 8 4.25

Wireless Wide Area Network (WWAN) 1 2.63

Wireless Local Area Network (WLAN/Wi-Fi) 2 3.63

Wireless Personal Area Network (WPAN/ Bluetooth) 0 2.50

Global Positioning System (GPS) 0 3.25

Personal computer (PC) was the most preferred communication device tool compared to

smartphone, PDA, notebook, tablet PC or walkie-talkie as shown in Table 5-6. This is

rather surprising particularly in relation to smartphone and tablet PC because they are

widely used. PC received the highest average rating for effectiveness but, interestingly, for

the other devices the ratings do not correspond to the number of observations.

Table 5-6: Observation and Recommendation for Communication Device

Communication device Number of


Effectiveness

Smartphone 6 3.13

Personal Digital Assistant (PDA) 4 3.88

Tablet PC 4 3.25

Notebook (laptop computer) 6 4.50

Personal Computer (PC) 8 4.75

Walkie-Talkie 5 4.00

For tracking of material flow, equipment location and personnel activities, all the proposed

sensor technology such barcode, RFID, Wi-Fi tags, CCTV and webcam were classified as


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not effective tools as shown in Table 5-7. These were not observed to be used much for

tracking or monitoring materials and assets at construction sites.

Table 5-7: Observation and Recommendation for Tracking/Monitoring Technology

Tracking/monitoring technology Number of


Effectiveness

Bar codes 3 2.75

Radio Frequency Identification (RFID) 3 2.38

Wi-Fi Tags 0 2.50

CCTV 3 3.75

Webcam 4 3.75

Table 5-8 shows that the most observed and preferred management software was Microsoft

Project (MSP) compared to other less popular and perhaps expensive ones. Primavera

Project Planner came close second. Web-based project management software was

categorised as not effective for the logistics services application as indicated by table 5-9.

The reason for the low number of observation and low rating of effectiveness was because

different organisations used different project management software and the respondent

from each organisation only found the software that they were familiar with to be effective,

hence giving low scores to the others.

Table 5-8: Observation and Recommendation for Desktop Project Management Software

Desktop Project Management Software Number of


Effectiveness

Microsoft Project (MSP) 4 4.00

Micro Planner X-Pert (X-Pert) 1 2.38

Primavera Project Planner 3 3.00

Table 5-9: Observation and Recommendation for Web-based Project Management Software

Web-based Project Management Software Number of


Effectiveness

Microsoft Office Project Server 1 2.88

eGroupWare 1 2.13

Project.net 1 2.13

Oracle Applications 1 2.25

Enterprise Resource Planning (ERP) 1 2.88


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From Fig. 5-3, it can be observed that there were two main problems encountered in the

application of digital technologies: cost-effectiveness and training. Maintenance and

services came second, followed by issues of poor coverage, licensing, communication flow

overload, different technology, time consuming and cultural. Opinions were divided

regarding interoperability and security and privacy. Lack of automation and robustness

were not seen as a problem.

Fig. 5-3: Problems Encountered Using IT Technologies

It was remarked that bar coding of key construction elements from factory could assist and

speed-up construction as key members of staff could easily locate important structure

elements. If ‘fit-out’ items (e.g. light fitting) were bar coded and registered on database,

critical path items like air-conditioning would never become a reason why a building could

not be handed-over. The general workforce would prefer a technology that provides a

simple ‘hit-button’ – when it is pressed things happen. They need to see substantial

benefits in adopting such technology and the management would need to see the proof of

its cost-effectiveness.

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Recommendations for improvement include:

Application needs to suit the site requirement, e.g. limited site access, limited time

for delivery (working in city centre – London), security check-up (working with

Ministry of Defence).

Application needs to be operated and managed by a logistics company/

subcontractor.

Training and continuity of software including upgrades.

5.4 Key Findings from Survey

It can be observed that the face-to-face meeting and communication through phone were

highly recommended and dominated the communication and information delivery in

construction organisations. The planning of logistics activities were highly observed and

recommended, however during work implementation the recommendations remained high

but the number of observations became less. For tracking and monitoring of logistics

activities, these became even less. The internet and PC were the only communication

technology and device that all respondents were happy with. None of the tracking and

monitoring technologies were believed to be effective and the most popular project

management software was Microsoft Project. The fact that some companies did not keep

up with technology was the main concern about communication and information tools.

Also, respondents felt that it was unnecessary for information to travel in real-time.

Recommendations to improve logistics management included employing reliable known

contractors, building up a relationship with regular suppliers and understanding and

planning for material flow and material handling. Raising awareness throughout the

industry of the benefits of ‘managed logistics’ and that logistics is not just for very large

projects were the other recommendations.

Implementing and adopting a new technology would be a challenge because the general

workforce prefers a technology that is simple and easy to use, while the management is

concerned with its cost-effectiveness. On the whole, it is clear that only the basic and low

level IT facilities are currently available and being utilised at construction sites and

construction practitioners are not ready to use digital and wireless technologies in their

day-to-day work.


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5.5 Case Studies

Case studies of construction projects were carried out to investigate the current logistics

practices in the construction industry for the purpose of generating construction supply

chain scenarios which are discussed in the next chapter. As previously revealed in Chapter

2, logistics as the back bone of the construction supply chain processes plays a great role in

optimising the flow of materials, equipment and people from the point of supply to the

point of use. Logistics creates value within the supply chain through managing customer

service, orders, inventory, transportation, storage, handling, packaging, information,

forecasting, production planning, purchasing, cross docking, repackaging, preassembly,

facility location and distribution (Hamzeh et al., 2007). Materials handling, transportation

and warehousing are known to be the critical services that serve the logistics operation

processes by optimising the movement of raw materials, optimising the transportation

mode, locating and designing facilities.

Six construction projects were investigated to learn the running of their daily logistics

activities in building their projects. These involved in-depth semi-structured interviews

with those responsible for materials management and site logistics of the chosen

construction projects. The current situations with regard to logistics services management

were identified based on the problems encountered in managing site logistics, the

approaches taken to address the problems, the utilisation of information and

communication tools (as listed in Table 5-1), the possibility of using digital technologies

(as listed in Tables 5-5 to 5-7) for improving the current construction project activities and

the current methods used by the site managers to track materials and assets.

5.5.1 Objectives of the Case Studies

The aim of the case studies was to learn the running of the day-to-day logistics activities at

construction project sites. The main objectives of the case studies undertaken were as

follows:

To investigate the current practices and problems of logistics services management

in construction projects.

To identify the approaches to address site logistics problems.

To examine the implementation of ICT in logistics services management processes.


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To explore the potential of digital technologies (such as Wi-Fi tags and PDA) in

logistics services management on construction projects.

5.5.2 Choice of Case Studies

Case study research was selected to acquire more insight into the current construction

logistics practices, problems encountered, information and communication tools and the

potential use of digital technologies. The case studies were undertaken to discover the site

logistics management practices on six construction projects (Case A - Case F). The data

collected were based on semi-structured interviews with the managers responsible for site

logistics services which include the management of materials. The semi-structured

interview questions were designed in three parts. The first part was aimed at capturing the

general information about the site managers and the project they were in charge of. The

second part examined the current practices and the information and communication tools

used in the logistics services management. The third part of the semi-structured interview

was intended to investigate the potential use of digital technologies such as Wi-Fi tags and

PDA for material, asset and personnel monitoring and the needs for a context-aware

system for logistics services management.

For the purpose of this research, the ‘unit of analysis’ was geared towards achieving the

study objective, which was to investigate the potential of implementing digital

technologies for improving on-site logistics services management on construction projects.

The ‘unit of analysis’ for this study was based on the six construction projects and with six

‘embedded unit of analysis’ as follows:

Site logistics services problem: This explored the most significant problems that

occurred in the site logistics management practices

Approaches to addressing problems: This aimed to identify strategies used by site

managers to solve site logistics management problems on the construction site

Information and communication tools: This sought to identify the use of

information and communication tools at construction site.

Use of digital technologies: This investigated the potential of the digital

technologies to facilitate site logistics management practices.

Logistics information and services system: This sought to identify the current

methods used by site managers to facilitate materials, personnel and asset tracking


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on construction sites.

ICT implementation issues: This investigated the issues that arose from the

implementation of ICT at site.

Data analysis involved both single case and cross-case analyses as shown in Fig. 5-4.

Single case analysis was conducted to produce individual case reports in order to obtain the

information on the current site logistics management practices, problems encountered on

site and the utilisation of information and technology tools. Amaratunga and Baldry (2001)

Case A

EUA 1

EUA 6 EUA 5

EUA 4 EUA 3

EUA 2

Case B

EUA 1

EUA 6 EUA 5

EUA 4 EUA 3

EUA 2

Case C

EUA 1

EUA 6 EUA 5

EUA 4 EUA 3

EUA 2

Case D

EUA 1

EUA 6 EUA 5

EUA 4 EUA 3

EUA 2

Case E

EUA 1

EUA 6 EUA 5

EUA 4 EUA 3

EUA 2

Case F

EUA 1

EUA 6 EUA 5

EUA 4 EUA 3

EUA 2

Key Cross-Case Analysis

EUAI Embedded Unit of Analysis 1: Site Logistics Services Problem

EUA2 Embedded Unit of Analysis 2: Approaches to Addressing Problems

EUA3 Embedded Unit of Analysis 3: Information and Communication Tools

EUA4 Embedded Unit of Analysis 4: Use of Digital Technologies

EUA5 Embedded Unit of Analysis 5: Logistics Information and Services System

EUA6 Embedded Unit of Analysis 6: ICT Implementation Issues

Fig. 5-4: Single Case and Cross Case Analysis (reproduced from Yin (2003))


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suggested that this allows the unique patterns of each case to emerge before pushing

towards generalised patterns across cases. Cross-case analysis was used to make a

comparison of the embedded unit of analysis across the various case studies (Yin, 2003).

This involved the examination of the six ‘embedded unit of analysis’ between each case

study to provide the key findings from an argumentative interpretation.

The details of the case studies undertaken and a summary of the key findings, which are

grouped according to the six main ‘embedded unit of analysis’, are discussed in the

following section.

5.6 Case Study Projects

Case studies involving six construction projects were undertaken to explore the current

practices. Problems faced in the logistics services management and the information and

communication tools to facilitate the logistics services management processes were also

investigated. The case studies were also used to obtain information relating to materials

and asset stracking and the potential use of digital technologies such as Wi-Fi tags and

other wireless technologies and to observe the differences and similarity of logistics

services management issues within different projects.

The selection of construction organisations (cases) was based on the adequate access to

explore the relevant logistics management issues to be investigated and the willingness of

the individuals within the organisations to participate and share their experience in

managing their construction sites. The same construction practitioners who participated in

the previous questionnaire survey were interviewed in these case studies. Two of them

were not included in this study because they were not directly involved in managing a

project. One of them was a facilities manager for a client and the other was a third party

logistics director hired by the same client to plan and oversee the multiple projects owned

by the client. The interviewees under study were all experienced construction professionals

with at least ten years experience on the construction site while the cost of projects varied

from £11.8 million to £750 million. The background information on the six construction

projects involved in the case studies are presented in Table 5-10.


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Table 5-10: List of Case Studies

Case Type of Project Person Interviewed Cost (£)

A Academic Building Extension

Project Project Manager 22 million

B Academic Building Refurbishment

Project Project Manager 11.8 million

C New Commercial Office

Development Project Construction Manager 46 million

D Museum Extension Project Contracts Manager 61 million

E New Airport Terminal Project Logistics Project Manager 750 million

F Students Residential Halls Project Senior Project Manager 49 million

The construction organisations were visited and in-depth semi-structured interviews took

place with the project/site manager or other personnel involved in the logistics

management on construction projects. The interviews were conducted in each of the

manager’s site office. The following sub-sections present the outcomes of the interviews.

5.6.1 Case A: Academic Building Extension Project

Project A involved the construction of a large lecture theatre, three smaller theatres,

numerous offices, seminar rooms and administration and study areas for an academic

building with a total cost of £22 million. The design of the building had a number of novel

features that involved suppliers and specialist subcontractors from overseas. The site

location was fairly tight due to its position at the very front of a university campus. The

project manager of the main contractor for this project was interviewed in order to

understand the current site logistics services practice and the related problems.

(a) Site Logistics Services Problems

Generally, there were several site logistics services problems faced by the project manager

responsible for this project:

Material supply, storage and handling: From time to time, there was a shortage of

materials due to inadequate stock and late delivery. Sometimes, there was a need


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for resupply of material due to incorrect delivery where materials did not comply

with standard requirements, not in good condition or of poor quality. At other

times, delivery was incomplete due to insufficient or damaged materials during

delivery. Materials delivered were often placed or stored temporarily at a

designated area before being transported to their point of use causing double

handling of materials. There were also site storage constraints where the

compound space was insufficient and lacked security.

Logistics problem: The site’s vicinity to the main campus road meant that there

were limited loading and unloading areas.

Project location challenge: The project was located on a university campus having

site access constraints. All delivery transport had to undergo security checks and

required entry permit to enter the campus. There were problems of congestion

when many vehicles were entering the campus during peak hours. Material

delivery transport caused disruption to traffic flow and posed hazards to students

or pedestrians passing by. Limited parking space was also a problem.

(b) Approaches to Addressing Problems

Site logistics activities mainly involved the delivery and handling of materials. Materials

logistics problems were often affected by the activities of transportation of materials to the

construction site due to limited access and loading area and traffic congestion. There were

several approaches initiated by the organisation to try and address some of the

aforementioned problems.

Material delivery system: Project A had implemented a material delivery booking

system to ensure that suppliers did not make deliveries at the same time hence

avoiding unnecessary queue and traffic congestion. It was a manual booking

system, i.e. logbook, implemented by the main contractor. All subcontractors were

required to book a time slot for their suppliers to deliver and unload materials. The

site had no actual logistics management and subcontractors had to organise their

own material handling equipment. Having very limited unloading areas and very

tight turning space, the implementation of these time slots had to be quite rigid.

Suppliers arriving late and not able to unload within the time slot were turned away


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and the subcontractors were asked to book another time slot so as not to disrupt the

material delivery schedule of the day.

Storage: Being located on a fairly tight site, subcontractors were allocated limited

site storage for their materials on site. Therefore, they were encouraged to adopt the

JIT concept whenever possible. JIT material delivery was especially crucial when

involving specialised materials/components from overseas specialist suppliers who

needed to install their materials/components themselves. It made sense for the

materials/components to be delivered only at the time when they were required for

the project. Furthermore, due to the unsafe and unprotected storage area, the

subcontractors had to make sure that no materials were left on site for long periods

for fear of theft.

Site access: Parking spaces on the university campus were very limited, therefore

access to the campus was restricted to permit holders only. Having implemented a

manual material delivery booking system, the main contractor’s gatekeeper had to

inform the client’s security guard about daily material delivery schedule. Suppliers’

transports were only allowed on the campus and the construction site after getting

clearance from the security guard. Any suppliers arriving too early or not as per

schedule would be turned away by the security guard. This had to be done because

there were no waiting areas anywhere on campus and queuing would only cause

traffic congestion on the already busy main and access roads. To address the

problem of parking spaces, workers had to park their vehicles outside the campus.

Safety: Considerations for traffic flow and pedestrians’ safety were given when

allocating time slots, for example, there were no material deliveries during peak

hours to avoid congestion on the already busy traffic on the main and campus

roads.

Waste management: Skips were provided on site for the subcontractors to manage

their waste and surplus materials. A specialised subcontractor was hired to empty

the skips on a daily basis.

Security: From observation it was discovered that the owner of the project installed

CCTV and webcam on nearby buildings to monitor the project progress and to

reduce theft at site.


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(c) Information and Communication tools

Generally, this project utilised all the basic information and communication tools that were

highly observed and recommended in the previous survey (Table 5-1). Apart from

drawings which were managed using the client’s web management system, all other

communications were done manually. The site used notice boards and toolbox talks to

brief workers about safety issues and activities for the day to ensure all workers knew their

own tasks and were aware of others’ tasks. Face-to-face meetings, telephone and e-mail

system were the most common and preferred type of communicating tools between all

parties involved in the construction project.

(d) Use of Digital Technologies

The project did not employ any digital technologies such as wireless-system to support

materials, personnel and asset tracking on the construction site. However, digital

technologies were used for general communication purposes. The communication

technology and devices that the project employed were the internet, WLAN, notebook, PC

and walkie-talkie.

(e) Logistics Information and Services System

Manual practices were used in this project for managing the logistics services. For tracking

and checking material delivery and stock inventory, no specific tools or techniques were

used to aid the handling of materials on site. However, the interviewee was aware of the

use of tagging technologies such as bar-coding, Radio Frequency Identification (RFID) and

the potential use of Wi-Fi tagging for tracking materials and assets.

(f) ICT implementation issues

The implementation of ICT at site had brought up several issues that needed to be

addressed such as the requirements for training, time consuming (due to lack of training or

long training period) and maintenance and services. There were concerns that many

workers were not bothered to use or learn using new technology due to traditional work

culture. Problems regarding information flow were mostly regarding information being

inaccurate, limited information sharing facilities and slow to retrieve information/data

because not everyone checked e-mail regularly.


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5.6.2 Case B: Academic Building Refurbishment Project

Project B involved the fit-out and refurbishment works for an existing purpose-built

academic building with a total cost of about £11.8 million. The project included

remodelling existing lecture theatres, building an additional café and fit out work for air

conditioning, electrical services, decorations, carpet, suspended ceilings, demountable

partitioning and furniture. This project was technically complex because it involved many

suppliers. Located on the same university campus as Project A meant this project also

encountered similar problems to Project A. The project manager of the main contractor for

this project was interviewed in order to understand the current site logistics services

practice and the related problems.


In managing this site, the project manager identified several problems relating to logistics

services management as follows:

Material supply, storage and handling: This project also experienced similar

problems as Project A. In addition, improper handling of materials was sometimes

a problem when material handling equipments were not available during materials

delivery causing other available equipment to be used instead.

Logistics problem: The site’s vicinity to other blocks meant that there were limited

loading and unloading areas. Furthermore, an existing parking lot was used as the

loading and unloading area on this site meaning the parking spaces had been

reduced and became limited.

Project location challenge: This project also experienced similar problems as

Project A due to its location.


There were several approaches used to address the site logistics services problems in this

project.

Material procurement system: The project implemented a procurement system and

ensured that all subcontractors knew about it. All communications were also done

electronically using the main contractor’s own system. Ordering of materials was


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done via e-mail system by filling in the standard ordering form. The project

employed reliable known (quality checked) contractors by building up a good

relationship with regular suppliers. All suppliers were required to book

electronically a time slot for delivering and unloading materials. Implementation of

these time slots were also rigid as suppliers that did not book a time slot were not

allowed entry to the site. The reason for this rigid implementation was because the

building was in use and preparation for material handling equipment took some

careful planning.

Site Access: Similar to project A, access to the campus was restricted to permit

holders only. To address the problem of parking spaces, a grass field on the campus

area was temporarily converted into a contractors’ parking lot.

Safety: The existing parking lot was used as a material unloading area and the

existing building was in use, therefore considerations for students’ safety were

always given priority when unloading materials.


Apart from drawings which were managed using the client’s web management system, all

other communications were done electronically. Having the same client as Project A, the

site also conducted toolbox talks to brief workers about safety issues and activities for the

day to ensure all workers knew their own tasks and aware of others’ tasks. Telephone and

e-mail system were the most common and preferred type of communicating tools between

all parties involved in the construction project. Face-to-face meeting occurred on a weekly

basis.


As in Project A, the project did not employ any digital technologies to support materials,

personnel and asset tracking on the construction site. Digital technologies were used for

general communication purposes only. The communication technology and devices that

the project employed included the internet, notebook, PC and walkie-talkie.


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and checking materials delivery and stock inventory, the project used bar-coding of key

construction elements and fit-out items. The interviewee was also aware of the use of other

tagging technology such Radio Frequency Identification (RFID) and the potential use of

Wi-Fi tagging for tracking materials and assets.



addressed, such as subcontractors and suppliers did not use the same technology, and

information received was often not in the format required. Some workers did not bother to

use or learn new technology. Problems regarding information flow were mostly regarding

information being inaccurate, limited information sharing facilities and slow to retrieve

information/data because not everyone checked e-mail regularly.

5.6.3 Case C: New Commercial Office Development Project

Project C involved the construction of a 12-storey steel structure supported by a concrete

core commercial office building. It consisted of ten floors of open plan office

accommodation and two levels of basement car parking costing about £46 million. This

was a major and complex project involving numerous work tasks and many subcontractors.

The high specification office building which incorporated renewable energy systems was

built to a highly distinctive and sustainable design. Works also included diversion works to

live water main and extensive external works. The construction manager of the main

contractor who was responsible for first phase of this project was interviewed.


In managing the construction site, the construction manager interviewed identified several

problems relating to logistics services management as follows:

Material supply, storage and handling: Occasionally, double handling of materials

occurred due to logistics problem where materials delivered were placed

temporarily on the site before being transported to their point of use. There was


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also material handling equipment distribution problem. The high degree of demand

for tower crane operations made it difficult to move materials that required lifting

by crane. There were also site storage constraints where the compound space was

insufficient.

Project location challenge: This project faced project location problems due to the

project being situated in a city centre which affected the activities of materials

delivery at the construction site. The site was immediately adjacent to a main rail

line and major roads. Parking space on site was non-existence.

Logistics Problems: The project had logistics problems as the construction site was

surrounded by public infrastructure such as rail station, railways and main roads. It

was therefore especially difficult to transport large materials and concrete into the

construction site. There was also limited loading and unloading areas.

Site access constraints: The single site access point led to traffic congestion

especially during peak hours.

Regulation consideration: The contractor had to seek permission from the local

authority to deal with materials delivery into the construction site.


In managing the construction site, the construction manager interviewed identified several

problems relating to logistics services management as follows:

Material delivery system: In order to overcome the logistics and distribution of

tower crane problems, regular discussions and coordination meetings with all

subcontractors were undertaken. There was also provision for a proper schedule of

the tower crane activities to record all the operations within the construction site.

JIT technique was implemented in this project to deal with double handling,

inadequate site storage space and the small loading area for the delivery of

materials to the construction site.

Security: Security guards were employed on the project to deal with the single

access problems and to manage the flow of traffic into and out of the construction

site. The security guards were also responsible for ensuring the safety of materials,

equipment and many valuable things at the construction site. CCTV and webcam

were used to monitor the site security and progress of the project.


138


Basically, this project utilised all the basic information and communication tools. Face-to-

face meetings, telephone and e-mail system were the most common and preferred type of

communicating tools between all parties involved in the construction project.


The project did not employ any digital technologies to support materials, personnel and

asset tracking on the construction site. They were used for general communication

purposes only. The communication technology and devices that the project employed

included the internet, WLAN, notebook, tablet PC, PC and walkie-talkie.



and checking materials delivery and stock inventory, the project used RFID for key

construction elements. The interviewee was also aware of the potential use of Wi-Fi

tagging for tracking materials and assets.



addressed, such as: high capital investment cost, training, maintenance and services,

licensing (including software licensing), interoperability, security and privacy concerns

and communication flow overload. Problems regarding information flow were mostly

regarding information not being retrieved from e-mail regularly.

5.6.4 Case D: Museum Extension Project

Project D involved an extension to an existing museum situated in a city centre. It was part

of the redevelopment work carried out for the museum establishment. The new building

comprised of five floors with level access throughout, housing 39 new galleries including

four temporary exhibition galleries, a new education centre, state-of-the-art conservation

studios and a rooftop restaurant. The total cost of redevelopment was £61 million. The

construction site was fully enclosed by other buildings. The new building was as close as


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25 millimetres on two sides to other buildings. The only access to the site was through

making use of a four-metre-wide lane to the public street. The problem was that they had

to cross a busy walkway which many hundreds of pedestrian passed everyday. Material

deliveries were completely impossible during an annual festival. During those days, the

construction site could only be accessed on foot.


The most significant challenges faced by the project were as follows:

Material supply, storage and handling: Insufficient space was given for use as a

storage area for materials at the construction site. Delivery of materials into the

construction site was affected by delays due to city traffic congestion.


project being situated in a city centre which affected the activity of materials

delivery at the construction site. It was almost impossible to deliver materials on

time during peak hours due to traffic congestion. Parking space on site was non-

existence.

Logistics Problems: The project had logistics problems as the construction site was

surrounded by other buildings and main roads. It was therefore especially difficult

to transport large materials and concrete into the construction site and equally

difficult to unload due to inadequate unloading area.

Site access constraints: The single site access point led to traffic congestion

especially during peak hours.


There were several approaches to dealing with all the problems mentioned above.

Communication system: The consultant of the project implemented a web-based

communication system where all parties involved in the project were required to

use. This system allowed drawings and other project documents to be downloaded

from the server and enabled information sharing with the design team and

subcontractors.


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Material delivery system: Subcontractors were given full responsibility to order and

handle their own materials. Considerations to pedestrians and traffic flow were

given when planning for materials delivery.

Waste management: Waste management plan was also in place to get rid of the

surplus materials and rubbish.


Generally, this project utilised the basic information and communication tools that were

commonly observed and recommended in the previous survey. Face-to-face meetings,

telephone and e-mail system were the most common and preferred type of communicating

tools between all parties involved in the construction project.


Digital technologies were used for general communication purposes but not to support the

tracking of materials, personnel and assets on the construction site. The communication

technology and devices that the project employed were the internet, PDA, tablet PC,

notebook, PC and walkie-talkie.


Manual practices were used in this project for managing the logistics services but the

interviewee was aware of the use of tagging technology like bar-coding, RFID and the

potential use of Wi-Fi tags for tracking materials and assets.



addressed such as training, communication flow overload and subcontractors and/or

suppliers not using the same technology.

5.6.5 Case E: New Airport Terminal Project

Project E involved the construction of a new airport terminal with a total construction cost

of about £750 million. This project consisted of 16 major projects and over 147 sub-

projects on a 260 hectare site. It encompassed a vast and hugely complex programme of


141

work. This involved extensive civil engineering works such as excavation, substructure

concrete, paving concrete, reinforcement, curtain walling, roofing and tunnelling. Other

works included a network of new roads, car parking, waste management and retail and

airport facilities.


In managing this project, the main problems faced by the logistics project manager were as

follows:

Material supply, storage and handling: This project had difficulty with delays in

supplying materials into the construction site due to the huge amount of materials

and dealing with various suppliers. These delays also included suppliers from

outside the country which required more time for materials delivery. Problems with

materials not complying with specific standard requirements which needed to be

returned back to suppliers affected the processes of materials delivery into the

construction site. There was also inadequate storage area for materials on the

construction site.

Regulation consideration: The activities of supplying materials into the

construction site had to obtain entry permission due to project being in high

security area.

Supply chain challenge: The variety and vast amount of suppliers and materials

created challenges with the commitment of suppliers and contractors to do the job.

Project size challenge: The scale/size of the project posed a challenge.

Logistics Problems: Physical access was a problem due to traffic overflow and

surrounding local roads near the construction site.


In managing the construction site, the interviewee identified several problems relating to

logistics services management as follows:

Material delivery system: Being a large and established organisation, the client of

this project had a well-established web-based booking system and a logistics centre

(LC). All construction material deliveries must be booked onto this material


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delivery booking system. Having done so, suppliers were allocated a time slot at

which to arrive at the LC. To be able to access the system, suppliers must first

register and could only gain access after approval. Implementation of these time

slots were very rigid and suppliers had to ensure that they arrived in plenty of time,

taking into consideration the queuing time required to pass several gates and

security checks before arriving at the LC. The queues were normally long. The

client employed a third party (3PL) company to take care of the site logistics.

Storage: LC was implemented to facilitate the huge amount of materials involved

in this project. The LC provided a temporary storage compound as one stop centre

for materials delivery. The practice of JIT concept ensured that the materials were

delivered to the required place when needed. This also overcame late delivery

problems. As in Case A, certain materials were delivered JIT without going through

the LC first. Excellent collaboration was noted between contractors and suppliers in

achieving good management of materials delivery to construction sites. The

combination of LC and JIT had been employed to address the problem of

inadequate site storage for this project.

Site access: Suppliers delivering materials to the LC or construction site had to pass

several gates and security checks before arriving at their designated locations. Once

a supplier had successfully booked a time slot for material delivery, they would

receive a confirmation note. This, together with a copy of purchase order and

delivery order were required to be shown at each check point to obtain entry

clearance. Provided all the authority’s regulations had been complied with and all

the necessary documents were in order, gaining access to the LC was not a

problem.


Generally, this project utilised the basic information and communication tools. Face-to-

face meetings, telephone and e-mail system were the most common and preferred type of

communicating tools between all parties involved in the construction project.


The project did employ digital technologies to support the tracking of materials on the

construction site, but not personnel and assets. These were also used for general


143

communication purposes. The communication technology and devices that the project

employed included the internet, PDA, notebook, PC and walkie-talkie.


For tracking and checking of materials delivery and stock inventory, the project used bar-

codes and RFID. Bar-coding was utilised in the LC operation to facilitate effective

materials management. The process involved the identification and validation of material

delivery in order to know the specific location, time and date. Also bar-coding was used to

aid tracking and controlling of the rebar at the LC during rebar delivery. The

implementation of RFID was for tracking precast column and PDA was used to assist the

checking of construction daily activities. The interviewee was also aware of the potential

use of Wi-Fi tagging for tracking materials and assets.



addressed, such as training, maintenance and services, licensing, interoperability, lacking

in automation and robustness, security and privacy concerns and communication flow

overload. Problems regarding information flow were mostly regarding information not

being retrieved from e-mail regularly.

5.6.6 Case F: Student Residential Halls Development Project

Project F involved the construction of student residential halls with a total cost of £49

million. The redevelopment project consisted of two new buildings, comprising of 563

student bedrooms in a six-storey hall and 402 bedrooms in a four-storey hall. All the

accommodation was arranged in 8 and 10 bed flats connected to shared kitchens. Both

halls contained a resident tutor flat with an adjoining resident tutor office and both halls

had a committee room. The construction technique used was one of prefabricated concrete

panels for the rooms and pre-fabricated pods for the en-suite bathrooms. A new catering

building, a student laundrette and office facilities were also part of the project. The

interviewee was a senior project manager.


144


In managing this project, the interviewee identified several problems relating to materials

management as follows:

Material supply, storage and handling: Incomplete delivery due to insufficient

materials or damage to materials during delivery sometimes occurred. So did the

improper handling of materials because of material handling equipments were

sometimes not available during materials delivery. Site storage was also a problem

due to inadequate storage spaces.


project being situated in a crowded location, surrounded by other buildings and

public infrastructure such as other residential halls, houses and narrow main roads

which affected the activity of materials delivery at the construction site.

Logistics Problems: Because of its location, the project experienced logistics

problems which made it especially difficult to transport large materials and

concrete into the construction site.

Site access constraints: The site only had a single access. It was located near a

housing area, schools and other public buildings. The main road leading to the site

access road was part of a bus route and was always experiencing constant traffic

congestion especially during peak time. The road was not only narrow but double

parked at all times making turning into the access road quite impossible at times.


Material delivery system: The main contractor, having several projects on the same

campus, employed a third party (3PL) company to manage the logistics of their

projects. This 3PL company implemented a web-based booking system for

suppliers to book the material delivery time slots. As with the previous cases,

implementation of this system was adhered to quite rigidly because of the site

location challenge and site access problem. This eliminated the occurrence of many

transport vehicles arriving at any one time causing queues and congestion due to

waiting time to enter the site and unload materials at a specific storage area.

Storage: Having utilised mainly prefabricated materials/components, this project

practiced JIT concept to address the problem of inadequate site storage. Same as


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Case A, subcontractors were allocated limited site storage for their materials on

site.

Site access: Apart from the need to adhere to local authority’s regulations, gaining

access to site was not a major problem because suppliers only needed to obtain

entry permit once at the gate.

Security: The project utilised CCTV and webcam to monitor the progress site and

for security purposes.

Waste management: The organisation had a policy of reducing waste so that only a

very small percentage of waste was sent to landfill, therefore materials were reused

and recycled as much as possible.


Drawings were downloaded from the client’s web management system. The client also

provided unlimited e-mail storage size for information storage and communication

purposes. Face-to-face meetings, telephone and e-mail system were the most common and

preferred type of communicating tools between all parties involved in the construction

project.


Digital technologies were only used for general communication purposes. The

communication technology and devices that the project employed included the internet,

extranet, PDA, tablet PC, notebook and PC.


Manual practices were used in this project for managing the logistics services. No specific

tools or technique was used for tracking and checking materials delivery and stock

inventory on site. The interviewee was also aware of the use of tagging technologies such

as bar-coding, RFID and the potential use of Wi-Fi tagging for tracking materials and

assets.


146



addressed such as high capital investment cost, training, maintenance and services,

licensing, security and privacy concerns and cultural issues.

5.7 Key Findings from Case Studies

On the whole, it can be said that site logistics activities from the case studies mainly

involved the delivery and handling of materials. It was found that the current construction

logistics were being practiced differently according to the size of undertaken project.

5.7.1 Existing Material Delivery System

For most construction sites, there was at least some sort of a booking system for the

contractors to book the time for their suppliers to deliver construction materials. There are

three different types of construction logistics models that can be drawn from the case

studies. These are shown in the following Fig. 5-5 to Fig. 5-7.


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Main Contractor’s Material Delivery Booking System

The material delivery booking system model shown in Fig. 5-5 describes the construction

logistics model for Cases A, B, C and D. The project manager prepared a log book or web-

based system for the contractors to book time slots for their suppliers to deliver materials

and components to site. These projects were relatively small projects, having site access

constraint and limited loading and unloading area. This booking system focused on

materials delivery only. Contractors ordered their own materials, components, equipment

and machinery and booked time slot for their suppliers to deliver them to site.

Gate keeper

Log book or

web-based

system

Owner

Main Contractor

(Project Consultant & Execution)

Project Manager

(On-site Project Coordinator)

Subcontractors

Suppliers

Supply Houses

Construction Site

Fig. 5-5: Material delivery information and communication system for Cases A, B, C and D


148

Client’s Web Based Material Booking System


logistics model for Case E. The client prepared a web-based booking system for the

suppliers to book time slots online to deliver materials and components. Case E was a

mega project and in high security area. Its client established a web-based material delivery

booking system and a logistics centre (LC). Suppliers booked material delivery time slots

via the web-based system and had to arrive at the LC with enough time to unload materials

within the time slots allocated. Suppliers could also deliver material direct to site if JIT

concept was agreed on. The client also employed logistics consultant (3PL) to manage the

materials delivery and other logistics services/activities.

Owner

Project Consultants

(Designing)

Main Contractor

(Project Execution)

Project Manager


Web Based Booking

System

Logistics

Consultant

Subcontractors

Fig. 5-6: Material delivery information and communication system for Case E


149

Third Party Logistics Service


logistics model for Case F. Case F had limited access and was prone to congestion. The

main contractor had multiple projects and employed a logistics consultant (3PL) who

prepared a web-based booking system for the suppliers to book time slots online to deliver

materials and components. The logistics consultant owned the material delivery software

and suppliers booked time slots for material deliveries via the logistics application software.

The logistics consultant also managed other logistics services/activities at all the different

projects.

Owner

Project Consultants Main Contractor

(Project Execution)

Project Manager


Third Party (3PL)

(Logistics Services Coordinator

and Controlling) Subcontractors

Suppliers

Supply Houses

Construction Site

Fig. 5-7: Material delivery information and communication system for Case F


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5.7.2 Case Studies Analysis

The problems identified from the case studies revealed that each case study experienced

similar problems with site access problem, project location challenge and inadequate

storage area at construction site. The problems and approaches to logistics services

management, information and communication tools, use of digital technologies, logistics

information and services system and ICT implementation issues are summarised in Table

5-11 and discussed below. The discussion involves a cross-case analysis between the six

case studies and grouped into six ‘embedded units of analysis’ investigated as follows:

Embedded Unit of Analysis 1: Site Logistics Services Problem

Embedded Unit of Analysis 2: Approaches to Addressing Problems

Embedded Unit of Analysis 3: Information and Communication Tools

Embedded Unit of Analysis 4: Use of Digital Technologies

Embedded Unit of Analysis 5: Logistics Information and Services System

Embedded Unit of Analysis 6: ICT Implementation Issues.


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Table 5-11: Cross-Case Analysis

Element of Analysis Case A Case B Case C Case D Case E Case F

Site logistics services

problems Late delivery

Site storage problems

Logistics problem

Incorrect delivery

Incomplete delivery

Inadequate loading area

Site access problem

Project location

challenge

Limited parking space

Late delivery


Logistics problem

Site access problem

Material damages

Improper handling

Material handling

equipment problem


Supply chain challenge

Project location

challenge

Limited parking space


Logistics problem


Site access problem

Regulation

consideration

Congestion time

Material handling

equipment problem


Project size challenge

Project location

challenge

No parking space

Late delivery


Logistics problem

Incorrect delivery

Incomplete delivery


Site access problem

Congestion time

Project location

challenge

No parking space

Late delivery


Site access problem

Regulation

consideration


Project size challenge

Project location

challenge


Logistics problem

Incomplete delivery

Site access problem

Congestion time

Improper handling

Material handling

equipment problem

Project location

challenge

Regulation

consideration

Approaches to

addressing problems Implementation of

material delivery

system – log book

Consider pedestrians

and traffic flow when

allocating material

delivery time slot

Full responsibility for

the subcontractors to

order and handle their

own materials

Use site notice boards,

toolbox talks to brief

workers about safety

issues and activities for

the day

Waste management

CCTV/webcam to

monitor site

Implement an electronic

communication system

and ensure that

contractors and

suppliers use it

Build up a relationship

with regular suppliers

Use of standard forms

Provide material

handling equipments as

required

Use toolbox talks to

brief workers about

safety issues.

Consider pedestrians and

traffic when unloading

material

Waste management

Understand and plan for

material flow and

material handling

Implementation of

procurement, material

delivery and waste

management systems

Provide material

handling equipments as

required

Information sharing

with design team.

Regular discussions and

meetings

Employ security guards

CCTV/webcam to

monitor site

Provide an web-based

communication system

Information sharing with

design team, and

subcontractors

Provide unlimited e-mail

storage size

Full responsibility for

the subcontractors to

order and handle their

own materials.

Waste management

Implementation of

material delivery system

– web-based

Suppliers to book

material delivery time

slot via web-based

system

Suppliers deliver

materials to construction

site JIT or to Logistics

Centre (LC )


operated and managed

by a third-party logistics

company employed by

client

Subcontractors order

their own materials.


managed by a third-

party logistics (3PL)

company employed by

main contractor

Suppliers book material

delivery time slots via

web-based system

belonging to 3PL.

CCTV/webcam to

monitor site


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Information and

communication tools Meetings

E-mail

Telephone

Plans and Drawings

Design specifications

Scope of works

Scheduling

Meetings

E-mail

Telephone

Plans and Drawings


Scope of works

Scheduling

Meetings

E-mail

Telephone

Plans and Drawings


Scope of works

Scheduling

Meetings

E-mail

Telephone

Plans and Drawings


Scope of works

Scheduling

Meetings

E-mail

Telephone

Plans and Drawings


Scope of works

Scheduling

Meetings

E-mail

Telephone

Plans and Drawings


Scope of works

Scheduling

Use of digital

technologies Internet

W-LAN/Wi-Fi

Notebook

PC

Walkie-Talkie

Internet

Notebook

PC

Walkie-Talkie

Internet

W-LAN/Wi-Fi

Tablet PC

Notebook

PC

Walkie-Talkie

Internet

PDA

Tablet PC

Notebook

PC

Walkie-Talkie

Internet

PDA

Notebook

PC

Walkie-Talkie

Internet

Extranet

PDA

Notebook

Tablet PC

PC

Logistics Information

and Services System Manual

CCTV

Webcam

Manual

Bar codes

Manual

RFID

CCTV

Webcam

Manual

Bar codes

RFID

Manual

CCTV

Webcam

ICT implementation

issues Training

Time consuming

Maintenance and

services

Cultural issues/not

bothered

Information not

accurate

Limited information

sharing facilities

Slow retrieval of

information

Subcontractors and/or

suppliers do not use the

same technology

Cultural issues/not

bothered

Info format - *.dwg file

required, but often large

file sizes, and replaced

with *.pdf file instead.

Information not accurate

Limited information

sharing facilities

Slow retrieval of

information

High capital investment

cost

Training

Maintenance and

services

Licensing (including

software licensing)

Interoperability

Security and privacy

concerns

Communication flow

overloaded

Slow retrieval of

information

Training

Communication flow

overloaded

Subcontractors and/or

suppliers do not use the

same technology

Slow retrieval of

information

Training

Maintenance and

services

Licensing

Interoperability


concerns

Communication flow

overloaded

High capital investment

cost

Training

Maintenance and

services

Licensing


concerns

Cultural issues/not

bothered

Information not accurate

Limited information

sharing facilities

Slow retrieval of

information


153

5.7.3 Site Logistics Services Problem

Generally, the findings from the case studies revealed that the major problems in term of

logistics management activities relate mostly related to materials management. Constraints

on site storage, site logistics with regards to materials handling and distribution, late

delivery of materials to the construction sites and information flow problem were common

(see Table 5-12). It was evident that site storage constraints, site access constraints and

project location challenge were the highest occurring problems. Logistics problem and

congestion time were the second highest occurring problem with five cases (all cases

except Case E). Four cases (Cases A, B, D, E) experienced late delivery problems, another

four (Cases A, B, C, D) experienced inadequate loading area and limited parking space.

Incomplete delivery, improper handling, material handling equipment problem, supply

chain challenge and regulation consideration were also problems for three cases. The cases

were Cases A, D and F for incomplete delivery; Cases C, D and F for both improper

handling and material handling equipment problem; and Cases B, C and E for regulation

consideration. Other issues such as incorrect delivery affected Cases A and D, project size

challenge affected Cases C and E and material damage only affected Case B.

Table 5-12: Site Logistics Services Problem from Case Studies

Site Logistics Services Problem Case A Case B Case C Case D Case E Case F

Late delivery √ √ √ √

Site storage problems √ √ √ √ √ √

Logistics problem √ √ √ √ √

Incorrect delivery √ √

Incomplete delivery √ √ √

Inadequate loading area √ √ √ √

Site access problem √ √ √ √ √ √

Regulation consideration √ √ √

Congestion time √ √ √ √ √

Material damages √

Improper handling √ √ √

Material handling equipment problem √ √ √

Supply chain challenge √ √ √

Project size challenge √ √

Project location challenge √ √ √ √ √ √

Limited parking space √ √ √ √


154

5.7.4 Approaches to Addressing Problems

The lack of adequate site storage to store materials on site was experienced by all projects.

However, this problem affected larger scale projects more due to the variety and large

amount of materials utilisation. Some approaches that had been undertaken to overcome

these problems included the implementation of JIT techniques (Cases A, C and E) and

implementation of LC (Case E). Materials logistics problems were affected by the

activities of transportation of materials to the construction site due to single access,

constraints of public regulations and traffic congestion during peak time. In reducing these

problems there were a few approaches implemented such as JIT (Case A, C and E),

communication system (Cases B and D) and carrying out regular discussions or meetings

(Case C).

The issue of late delivery was experienced from time to time by many construction projects.

There were many approaches to addressing the late delivery problems which differed from

one case to another. Cases A, B, E, and F implemented strict material delivery booking

system. In dealing with these problems, Case B also used quick response to inform

suppliers if any unexpected event happened, whist Case E implemented an LC to provide a

temporary storage compound for material delivery to avoid late delivery problems.

Excellent collaboration was noted as being needed between contractors and suppliers in

order to achieve better management of materials delivery to construction sites.

The JIT technique was implemented to address inadequate loading area and site access

problems (Cases A and C). The logistics centre had been set-up in order to overcome the

inadequate loading area, congestion time, supply chain challenge and project size

challenge for Case E. In order to deal with regulations requirements, these projects

complied with the local authority regulations to overcome site access problems.

5.7.5 Information and Communication Tools

On the whole, all projects utilised the basic information and communication tools such as

face-to-face meetings, e-mail, telephone, plans and drawings, design specifications, scope

of works and scheduling (Gantt chart) which were mostly paper-based. Face-to-face

meetings, telephone and e-mail system were the most common and preferred type of


155

communicating tools between all parties involved in the construction project. Facsimile,

although still available, were hardly used anymore.

5.7.6 Use of Digital Technologies

The projects in most of the case studies did not employ any digital technologies to support

logistics services management such as materials, personnel and assets tracking on the

construction site. Digital technologies were used for general communication purposes. The

popular communication technology and devices among the project were internet, extranet,

PDA, notebook, Tablet PC, PC and Walkie-talkie. The implementation of digital

technologies could help speed up ordering, improve materials and assets tracking, reduce

paper work and facilitate the efficient control and checking of materials and assets.

5.7.7 Logistics Information and Services System

Manual practices were used in almost all of these projects for managing logistics services.

No specific tools or techniques were used for tracking and checking materials delivery and

stock inventory on site. These involved many human errors and excessive paperwork. All

interviewees were aware of the use of tagging technologies like bar-coding, RFID and the

potential use of Wi-Fi tagging for tracking materials and assets. Some of the projects

(Cases A, C and F) utilised CCTV and webcam to monitor the progress site and security

and safety purposes. All the projects in the case studies utilised project management

software to track their work progress.

In Case E, bar-coding was utilised in the logistics centre operation to facilitate effective

materials management. The process involved the identification and validation of materials

delivery in order to know the specific location, time and date. Also bar-coding was used to

aid tracking and controlling of the rebar at the logistics centre during rebar delivery. The

implementation of RFID for Case E was for tracking precast column and PDA was used to

assist the checking of construction daily activities.

5.7.8 ICT Implementation Issues

There are clear business benefits from having one ICT system that can manage the flow of

demand and supply within the CSCM. This is very important because CSC needs to be


156

operated in a precise manner through information sharing and information exchange, i.e. in

enhancing the link between the main contractor and other supply chain partners (consultant,

owner and suppliers). From the case studies, it shows that the issues that had arisen from

the implementation of ICT at site from all the case studies were influenced by financial,

social and technical factors. Implementation of ICT or new technology involves high

capital investment cost. Sometimes, it is not cost-effective due to training, maintenance

and services and licensing (including software licensing) costs. Other issues arising from

the implementation of ICT at site from all the case studies were security and privacy

concerns, communication flow overload and interoperability when subcontractors and/or

suppliers did not use the same technology. Additionally, some companies did not keep up

with technology. This was made worse by general workers not bothered to learn new

technology because training was too time consuming.

The critical aspect in implementing ICT is to tie all the organisations as one network. The

potential benefits from implementing ICT in the CSCM can be seen from various angles

but in the construction practice the main issue is to tackle information and communication

barriers that produce waste at critical level.

5.8 Limitations of Current Practices

All projects from the case studies were affected from limitations of site storage area. Other

constraints include: single access to construction site, surrounding public infrastructure

such as roads and railways, traffic congestion during peak time and regulation

considerations. The implementation of JIT and logistics centre techniques could solve

logistics and storage problems for materials management processes. These techniques

could provide the solution to materials congestion due to inadequate storage space at

construction sites.

Generally, almost all cases used manual methods for the tracking of materials delivery,

identification of materials at storage area and controlling materials from damages. All

these activities involved human errors and massive paperwork. Unfortunately, the

implementation of JIT and LC techniques were unable to overcome human errors such as

double handling and paper-based reports that were used to record and exchange

information related to the materials/components within the CSC. The case studies


157

undertaken only revealed the widespread use of basic ICT tools to assist communication.

There was an inadequate use of modern ICT tools such as PDA, RFID and Wi-Fi tags to

assist with an automatic identification of material and asset tracking which could provide

real-time information of materials usage and equipment utilisation. There was also a lack

of ICT tools that could associate materials, labour and plant in one system with high level

programming and scheduling technology.

5.9 The Need for Context-Aware System

It is important to transform manual practices to automatic to improve the overall

performance of managing assets and materials. In order to be more efficient and effective,

site managers need to be provided with real-time information. Context-aware system

utilising digital technologies has the potential of assisting with the managing of site

logistics, tracking activities to overcome human error in assets, materials identification and

reducing material locating time caused by the constraints of site storage. This computer

based logistics management system has the ability to manage large, complex and multiple

construction projects.

Unfortunately, from the literature review and case studies findings there is a lack of

positive examples of such tools having been used effectively. Site managers experienced

difficulties in managing site logistics which involve assets and materials management in

the current practices. The key findings from case studies include inadequate techniques to

overcome human errors and inadequate use of modern ICT tools to assist assets and

materials tracking. An integrated framework for real-time assets and materials tracking in

the form of a context-aware system is needed in order to provide an intelligent system for

logistics services management on the construction site.

The proposed development of the context-aware system is intended to improve assets and

materials tracking and the overall process of logistics services management on construction

site. The proposed system is described in Chapter 8. In developing the proposed context-

aware system, a conceptual model for logistics management needs to be developed first.

This proposed model is presented in the next section.


158

5.10 The Proposed CSCM Model with Context-Aware System

Based on the material delivery and logistics services models (Fig. 5-5 to Fig. 5-7) drawn

from the case studies, a context-aware services delivery model has been proposed as shown

in Fig. 5-8. The proposed CSCM flow model consists of an information services delivery

system which is to be managed by an IT unit. The implementation of this system will only

be successful if it is initiated by the client and managed by an IT manager, a third party

employed by the main contractor as part of a contractual project requirement. The

deployment of IT unit as the backbone in the overall organisation structure is to ensure that

mobile workers (internal and external supply chain actors) are supported in their daily

tasks with services and awareness within their working environment by providing them

with as-needed information (Anumba and Aziz, 2006; Aziz et al., 2006). The proposed

context-aware system is an ICT application that plays an important role in delivering

information and services by supporting internal supply chain actors’ interaction with the

external ones through the push and synchronisation of personalised real-time information.

For example, in logistics services, the information and services related to materials

delivery such as the responsible project team members, supplier, crane operator, the

method of delivery and handling, material details and delivery schedule have been pre-

programmed in the project planning application and stored in the project planning/database

server. The relevant information or services will be pushed to the right actor at the right

time and the right location.

The logistics practices learned from the case studies, together with the logistics operation

and planning described by Sobotka and Czarnigowska (2005) have provided the basis for

generating scenarios of the future CSCM.


159

5.11 Summary

The survey results revealed that face-to-face meeting and communication through

telephone were the most common forms of communication in construction organisations.

The planning of logistics activities was highly observed but their implementation was

observed less despite being highly recommended. For the tracking and monitoring of

Construction/Building

Project Consultants (Design/Procurement/Project/Scheduling)

Main Contractor

Logistics Manager

(Logistics Services)

Owner

Supply and Delivery

Suppliers

Manufacturers

Raw Materials Suppliers

Project Manager

(Building Services)

IT Manager (Context-Aware Supply Chain

Delivery System)

Subcontractors

Fig. 5-8: Proposed CSCM model with context-aware


160

logistics activities, this became even less. The internet and PC were the only

communication technology and device that all respondents were happy with. The survey

results indicated that construction practitioners were not ready to adopt new technology.

This is based on the fact that only low level ICT facilities were used at construction sites.

None of the tracking and monitoring technology was believed to be effective as confirmed

by the case studies where most of the construction projects used manual method for

tracking and monitoring materials. Overall, the results of the survey confirmed the case

study findings.

Findings from the case study analysis showed that many of the cases had similar problems

with storage constraints. Handling and monitoring activities on site (such as assets and

materials tracking) were facilitated by manual operations in most of the case studies with

the potential for human errors and excessive paperwork. In order to improve the assets and

materials tracking system and the overall process of logistics services management in

construction projects, there were suggestions to have a transformation from current manual

practices to automated tracking, identification and control of assets and materials to reduce

damage and reduction in massive paperwork. It was also suggested to provide ICT tools

which could integrate materials, labour and plant into one system, i.e. context-aware

system.

The scenarios of the future construction practices are discussed in the next chapter and the

description of the proposed system is described in Chapter 8.


161

References

Amaratunga, D. and Baldry, D. (2001): "Case Study Methodology as a Means of Theory

Building: Performance Measurement in Facilities Management Organisations."

Work study 50(3): 95-105.

Anumba, C. and Aziz, Z. (2006): Case Studies of Intelligent Context-Aware Services

Delivery in Aec/Fm. Lecture Notes in Computer Science. I. F. C. Smith.

Berlin/Heidelberg, Springer-Verlag. LNAI 4200: 23-31.

Aziz, Z., Anumba, C. J. and Law, K. (2006): Using Context-Awareness and Web-Services

to Enhance Construction Collaboration. Joint International Conference on

Computing and Decision Making in Civil and Building Engineering. Montreal,

Canada: 3010-3019.

Hamzeh, F. R., Tommelein, I. D., Ballard, G. and Kaminsky, P. M. (2007): "Logistics

Centers to Support Project-Based Production in the Construction Industry."

Proceedings IGLC 15.

Sobotka, A. and Czarnigowska, A. (2005): "Analysis of Supply System Models for

Planning Construction Project Logistics." Journal of Civil Engineering and

Management XI(1): 73-82.

Yin, R. K. (2003): Applications of Case Study Research, SAGE Publications.

chapter 5 status quo of current construction …status quo of current construction practices 5.1...

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