1. Construction Supply Chain Modeling: Issues and Perspectives (Part 1)
Scott J. Mason, Ph.D.
Fluor Endowed Chair in Supply Chain Optimization and Logistics
Professor of Industrial Engineering

2. Supply chain defined (yet again)
Overview
Supply chain defined (yet again)
“an association of customers and suppliers who, working together yet in their own best interests, buy, convert, distribute, and sell goods and services among themselves resulting in the creation of a specific end product.”
SC stages
Raw material suppliers
Component suppliers
Manufacturers
Distributors
Customers
Scott J. Mason,

3. Example Supply Chain Structure
Scott J. Mason,

4. Capital Project Supply Chains
Large capital projects involve sourcing materials, equipment, and subcontracted services from multiple countries
Most projects are driven by some combination of cost and schedule requirements
Execution methodologies vary by industry, sector, and client
Sales
Design
Supplier Collaboration
Material Suppliers
Engineered Equipment
Sub-contractors
Supplier Evaluation and Selection
Logistics
Receiving & Warehousing
Operations & Maintenance
Purchasing
SQS
Expediting
Client Input / Requirements

5. Responsive vs. Efficient
Responsive SCs
Able to deal with wide range of quantities demanded
Can meet short lead times
Can handle large product variety
Meet very high service level requirements
Handle supply uncertainty
So why be anything else?
Cost!
Efficient SCs are cost-effective
Scott J. Mason,

6. Comparing These Two Supply Chains
Scott J. Mason,

7. A Representative Capital Project
Project Location
Critical Equipment Suppliers
Commodity Equipment Suppliers

8. Hierarchical Decision Framework
Strategic
Long term
SC configuration, location, capacities, warehousing
Tactical
Period of time (quarters)
Inventory control, production and distribution coordination, material handling, order/freight consolidation
Operational
Weekly or daily
Workforce scheduling, vehicle routing, scheduling, replenishment, packaging
Scott J. Mason,

9. Construction Supply Chains
Early 1990s
How can manufacturing concepts be transferred to construction context to reduce project costs
“However, construction industry characteristics differ substantially from the manufacturing SCs”
Big Myth, anyone? 
Scott J. Mason,

10. Manufacturing vs. Construction SCs
Scott J. Mason,

11. Manufacturing vs. Construction SCs (2)
Scott J. Mason,

12. Page 2-10, First Full Paragraph
Buffer, variability, and uncertainty are not yet common terms among experienced construction managers
On-site production inefficiency caused by poor production planning
Limited planning concerning the impact of off-site production and delivery variability
Keep large amounts of inventory on job sites to reduce risk of delays on production
Sound familiar? 
Scott J. Mason,

13. A Construction SC Concept
Construction SCs are composed of multiple SCs, each with specific behaviors
Scott J. Mason,