supply chain management in construction: a triumph of …
TRANSCRIPT
SUPPLY CHAIN MANAGEMENT
in CONSTRUCTION:
a triumph of spin over substance?
Dr. Stuart Tennant
Monday 6th. August 2012 CIOB West of Scotland
Glasgow Caledonian University
Introduction
Supply Chain Management in Construction:
a triumph of spin over substance?
Supply Chain Management in Construction:
a triumph of spin over substance?
Overview of the Research Three years: 2009 -2012, EPSRC Funded
What are Construction Supply Chains?
What is learning? and how do chains learn?
What Practices Provide Advantage?
Supply Chain Management: The Theory
Origins?
Multiple Definitions (suppliers’ supplier to customers’ customer)
Functional School of Thought (logistics, procurement, prod)
Philosophical School of Thought (‘way of working’)
Council for Supply Chain Management Professionals
Enhanced Performance
Supply Chain Management in Construction:
a triumph of spin over substance?
1. Organizational Theory (Governance)
2. Economics (Supply & Demand)
3. Sociology (Confrontational / Trust)
4. Management (Culture / Routines / History)
5. Other Sectors….
Influence from other Disciplines
Supply Chain Management in Construction:
a triumph of spin over substance?
Supply Chain Management Is Not
Simply Lean Construction
Simply Business Process Re-Engineering
Simply Strategic Alliances
Simply Collaboration or
Alternatively Partnering….
Supply Chain Management in Construction:
a triumph of spin over substance?
Organizational Governance in SCM Governance
Market
Buy
Network Clan Hierarchy
Make
Economic Price Orientated
Commercially Orientated
Socially Orientated
Authority Orientated
Social Asocial (Low-Trust)
Functional (Low-trust)
Embedded (High-Trust)
Over-Embedded (High-Trust)
Culture Arms-Length (Opportunistic)
Co-operative (Operational)
Community (Solidarity)
Bureaucratic (Administrative)
(Neither Market nor Hierarchy)
Supply Chain Management in Construction:
a triumph of spin over substance?
MAKE BUY
Traditional Partnering Frameworks
Timescale
Workload
Relations
Structure
Technology
Competition
S.C. Learning
S.C. Market
Management
MARKET NETWORK CLAN HIERARCHY
Procurement
Permanent
Continuous
Shared
Bureaucratic
Industrialised
Low
High
Buoyant
Strategic
Long-Term
Repetitive
Collaborative
Community
Manufacture
Restricted
High
Optimistic
Business
Medium-Term
Repeat
Cooperative
Cordial
Prefabricated
Selected
Moderate
Positive
Operational
Short-Term
One-Off
Adversarial
Arm’s Length
Craft
High
Low
Recession
Opportunistic
Governance
In-House
Bridging Theory with Construction (Model)
Supply Chain Management in Construction:
a triumph of spin over substance?
Bridging Theory with Construction Practice
1. Operational Interface
Supply Chain Construction Site
Supply Chain Management in Construction:
a triumph of spin over substance?
Bridging Theory with Construction Practice
2. Operational Capacity Upstream
Supply Chain Construction Site
Supply Chain Management in Construction:
a triumph of spin over substance?
Bridging Theory with Construction Practice
3. Transferring Onsite Activity, Offsite
Supply Chain Construction Site
Supply Chain Management in Construction:
a triumph of spin over substance?
Bridging Theory with Construction Practice
4. Integrated and Extended SCM
Construction Site Supply Chain
Supply Chain Management in Construction:
a triumph of spin over substance?
Bridging Theory with Construction Practice
5. Role of the Construction Client
Supply Chain Construction Site Client
Supply Chain Management in Construction:
a triumph of spin over substance?
Supply Chain Construction Site Client
Client-Led Supply Chain Contractor-Led Supply Chain
Supply Chain Management in Construction
Bridging Theory with Construction Practice
Market / Network / Clan / Hierarchy
Supply Chain Management in Construction:
a triumph of spin over substance?
Supply Chain Management in Construction:
a triumph of spin over substance?
Supply Chain Management: Best Practice
Supply Chain Management: Client-Led
The Language:
Principal Supply Chain Partner / Member
Supply Chain Management in Construction:
a triumph of spin over substance?
The Construction Client:
Client-Led SCM (The Project) Supply Chain
The Ground Rules:
Collaboration / Learning / Sharing / Exclusivity
Client-Led SCM
Client A
Consultant
Contractor
Client A
Member
Member
Member
Member
Contractor
Member
Exclusivity
Contractor Contractor
Exclusivity
Exclusivity
Member
Restricted Restricted Unrestricted
Limited
Org. SCM
Growing levels of Tri-Lateral Dependency, e.g. BIM
The Main Construction Contractor
Contractor-Led (The Organizational) Supply Chain
Supply Chain Management: Contractor-Led
Supply Chain Management in Construction:
a triumph of spin over substance?
Developing Certification Programmes
Pre-Qualification Questionnaires (PQQ)
Category Management
Tier Suppliers According to Capability / Track Record
Contractor-Led SCM
Contractor A
Supplier
Sub-Con.
Contractor B
Contractor C
Contractor D
Category 2
Category 3
Approved
Pre-Approved
Partner
Probationary
Provisional
Commodities Suppliers
Sub Sub-Con
Commodities
mutual unlimited
Category 1 Preferred restricted
Growing levels of Integration and Mutual Dependency
Organizational Learning in Supply Chains
Theory & Practice
The Main Construction Contractor
Contractor-Led (The Organizational) Supply Chain
Supply Chain Management in Construction
The Construction Client
Client-Led SCM (The Project) Supply Chain
Supply Chain Management in Construction:
a triumph of spin over substance?
Learn Led by Management
Evolution of Learning
Process
Learning Environment
Managerial Developmental
Learn by Discovery
Refine practice via repetition /
continuous production:
The Learning Curve
Economic
Action
Example
School
Training / interventions sponsored by
the organization
Structured educational programme:
learning syllabus
Organizational mechanisms
for information acquisition,
dissemination and utilization
Lessons Learned
Safety / Legal / Contracts
S.C. Development
ICT / BIM / 360o’s
Regular / Reactive
Routine/ Reactive
Rare Emergent / Pro-active ?
Supply Chain Management in Construction:
a triumph of spin over substance?
Organizational Learning in Supply Chains
SC Forums
Workshops
Learning
NEC3
Euro-Codes
H & S
ICT
BIM
KPI’s
CLAN
Integrated
NETWORK
Defined
MARKET
Progress
2012
Future?
Architecture
Language SCM
Supply Chain Management in Construction
Language SCM
SFT ‘Open Architecture’
Summary: Enduring Barriers
Enduring Impediments - Three
Partnering ‘Baggage’ & Previous Initiatives
Enduring Impediments - Two
Repeated Assimilation with Manufacturing (Binary in Nature)
Enduring Impediments - One
No Continuous Work Stream / Fragmentation / Culture
Supply Chain Management in Construction:
a triumph of spin over substance?
Summary: Continuous Improvements
Supply Chain Management ‘Creep’ - Three
Contractor-Led SCM: PQQ’s / Category Management
Supply Chain Management ‘Creep’ – Two
Governance / Client-Led Clans: Framework Agreements
Supply Chain Management ‘Creep’ – One
Language / Uniform & Sophisticated
Supply Chain Management in Construction:
a triumph of spin over substance?
Question:
The Long Answer:
Is far more complex and positive (The UK Construction Industry is exceptional at ‘Purchasing’ Management)
The Short Answer:
Very Often (in the context of suppliers’ supplier to customers’ customer)
So, is supply chain management in a construction
context a triumph of spin over substance?
Supply Chain Management in Construction:
a triumph of spin over substance?
Other Research Outputs:
Org. Learning in Construction SC
The Emergence of Construction Clans
The Commercial Currency of FA
Supply Chain Management in Construction:
a triumph of spin over substance?
Transferring on-site activity, off-site
Closing Thought:
Is the term ‘Supply Chain Management in
Construction’ misleading?
Supply Chain Management in Construction:
a triumph of spin over substance?
Thank You
SUPPLY CHAIN MANAGEMENT
in CONSTRUCTION:
a triumph of spin over substance?
Questions