Decision-making framework for selecting ICT-based construction logistics systems

Abstract

Purpose – The purpose of this paper is to discuss an integrated decision analysis framework for the investment justification of implementing alternative information and communication technology (ICT)-based logistics systems in the construction industry so as to enhance the decision-making process in selecting the best alternative. Design/methodology/approach – An integrated framework is proposed that is composed of a set of interrelated evaluation and analysis techniques that allow the identification and quantification of costs, benefits and risks involved in implementing ICT systems to mitigate problems that hinder the efficient operation of construction logistics. Such techniques include decision trees and multi-attribute decision-making under uncertainty that can be applied to the logistics planning of any new build construction project. Findings – The probabilities of providing benefits vary among the alternatives, and the probabilities will replace the uncertainties surrounding the impacts of the alternative ICT systems in addressing the identified construction logistics problems with chance events so as to estimate the expected cost of each alternative with respect to each selection attribute. Practical implications – This paper shows that it is almost certain that the analysed alternative ICT system will provide benefit because its probability of benefit is almost equal to 1. Originality/value – The framework captures the existing problems of logistics in construction process, potential solution that can address the problems through the implementation of ICT systems and the decision-making process in the selection of appropriate ICT solution. The output of the framework will help to make knowledge-based decision in selecting the best ICT system for addressing construction logistics problems.

Organising logistics and transport activities in construction

“…In line with the fourth role, Fadiya et al (2015) point to the fact that linking supply logistics (including activities such as specifications, acquisition, transport and delivery of materials to the construction site) and site logistics (including physical flow planning and logistics organising on the construction site) is key to accomplish integration in construction supply chains. Similarly, Ying et al (2014, p. 262) argue that the efficiency and effectiveness of a construction project "heavily depend on coordination of the on-site and external logistics".…”

Kitting Logistics Solution for Improving On-Site Work Performance in Construction Projects

“…The success of a logistics activity depends on making resources available to the next user in the supply chain on time, for which information and resources are essential (Sullivan et al 2011). Most companies have not yet realized the benefits of logistics practices and supply-chain management (Fadiya et al 2015); however, timely project delivery and high work performance require material deliveries to be appropriately planned and controlled, which is usually problematic due to the large variety of materials needed in a project and the decentralization of responsibilities among multiple subcontractors who procure, order, and handle the materials themselves. Therefore, kitting centrally procured materials can be a solution for improving construction logistics.…”

Construction Logistics Solutions in Urban Areas

“…Agapiou, et al (1998a) highlight that the focus of any construction logistics setup must be to improve coordination and communication between project stakeholders, and that the solution must be designed from a holistic view to create the best possible material flows to and from site. A construction logistics solution can range from just a small change in working practices (Aguirre, et al, 2010;Gajendran, et al, 2013;Perttula, et al, 2006;Tanskanen, et al, 2015), implementing planning systems and ICT tools (Fadiya, et al, 2015;Hadaya and Pellerin, 2010;Titus and Bröchner, 2005), to largescale terminal networks structures (Lundesjo, 2011;Transport for London, 2013) or justin-time solutions (Ekeskär and Rudberg, 2016;Sundquist, et al, 2017;Transport for London, 2013). Lately, the construction industry has started to look at how urban goods transport in general is managed (cf.…”