1. Roles of Supply Chain Management in Construction
Scott J. Mason, Ph.D.
Fluor Endowed Chair in Supply Chain Optimization and Logistics
Professor of Industrial Engineering

2. Practical SCM solutions must be developed in practice
Overview
Construction supply chains full of waste and problems caused by myopic control
Due to interdependency largely interrelated with other stages of the supply chain
Practical SCM solutions must be developed in practice
Theory alone won’t cut it
Need to take into account specific characteristics and local conditions
Interesting that both authors are academics!
Scott J. Mason,

3. Motivation
Dutch construction industry statistics indicate main contractors purchasing more labor and materials than before
24% turnover
Follows that remaining 76% turnover due to suppliers and subcontractors
High reliance on parties with high turnover motivates a renewed focus on supply chain management principles
Scott J. Mason,

4. Traditional Management vs. SCM
Scott J. Mason,

5. These three studies were meant to examine interdependency effects
European Case Studies
Analyzed time buffers for concrete wall elements in a residential building (quantitative)
Identify and locate controllability problems in façade elements in a residential building (qualitative)
Assess cost impact of a main contractor’s trading methods for purchasing materials
These three studies were meant to examine interdependency effects
Only first two are actually discussed in detail
Scott J. Mason,

6. Residential Building Supply Chain
Scott J. Mason,

7. Case Study 1 Overview
Time measurement to detect and analyze time buffers in a part of a supply chain process of concrete wall elements
Excavation and delivery of sand
Fabrication and delivery of elements
Site installation of elements
Objective: Analysis of the time used along the process in order to get insight in the time buildup, and the magnitude and location of time buffers
Scott J. Mason,

8. Case Study 1 Methodology
Decomposition of the process in sub-processes and activities
Time measurement of the activities
Categorizing time use per activity
Wasted, non-value-adding, value-adding
Locating and quantifying time buffers
Composing the process time buildup
Scott J. Mason,

9. Time Buffers in Practice
Scott J. Mason,

10. Underlying problems of the time buffers included separate planning
Case Study 1 Results
It appeared that at the beginning and the end of the sub-processes remarkable time buffers occurred
Due to inventory and delays
The share of the time buffers compared to the total lead-time was quite large (70-80%)
Underlying problems of the time buffers included separate planning
Problems referred to various root causes including inter-organizational barriers
Scott J. Mason,

11. Case Study 2 Overview
Involves problem analysis to identify and locate controllability problems in part of a supply chain process of composite façade elements
Job preparation
Price bargaining
Engineering
Assembly
Site installation of the elements
Objective: Analysis of the controllability problems along the process in order to get insight in the occurrence and causality among the problems and their causes
Scott J. Mason,

12. Case Study 2 Methodology
Decomposing the process in sub-processes
Uncovering the controllability problems per sub-process
Identifying and locating the causes
Finding connections between the problems and causes
Mason’s Take: Sounds like an effective Capstone strategy 
Scott J. Mason,

13. Any Experience with This?
Scott J. Mason,

14. Numerous controllability problems Root causes included
Case Study 2 Results
Numerous controllability problems
Root causes included
Non-collaborative working relations between parties
Adversarial bargaining
Most problems that were encountered on an operational and managerial level were caused by strategic and cultural issues
Lacking common targets
Reluctance
Opportunism
Scott J. Mason,

15. Main Conclusions
Even in normal situations much waste and problems exist in the construction supply chain
In the supply chain, most players appear to be managing just their own parts, securing their own businesses
Most of the waste and problems are caused in another (i.e. earlier) stage of the construction supply chain other than where they are found
Root causes of the waste and problems were rarely found in the activity where they were encountered
Often found in a previous activity executed by a prior actor, often operating on a higher organizational level
Mason’s Take: Passing the buck?
Scott J. Mason,

16. Main Conclusions (2)
Waste and problems are largely caused by myopic control of the construction supply chain
Many actors in the chain seem to be not able or interested to see the impact of their behavior on other (i.e. later) activities in the chain
In most cases, players optimize their own part of the chain, not taking into account other activities and actors in the supply chain
Scott J. Mason,

17. Potential Areas of Focus?
Scott J. Mason,

18. SCM is a continuous process, not just a one time thing
Your Takeaways
SCM is a continuous process, not just a one time thing
Local decisions can have positive and/or negative cascading impacts up and down the supply chain
Analysis based on averages vs. studies that explore/characterize variability concerns
Effective construction SCM requires a number of soft skills
Leadership
Teamwork
Communication
Collaboration
Scott J. Mason,