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Simulating the impact of supply chain management practice on the performance of medium-sized building projects

Lookup NU author(s): Jati Hatmoko, Dr Stephen Scott


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Construction supply chains encompass the flows of materials, labour, information, plant, equipment and temporary works that originate from a variety of different parties. The impact of various supply chain management practices on project performance has been measured, through a combination of a survey and the development of simulation models. Preliminary investigations were carried out by visiting two medium-sized building projects regularly over a period of six months to gain an understanding of the ways in which delays on supply chains impact on project performance. This was followed by the main survey which was designed to collect data required for developing the simulation models. These models were developed using Pertmaster Risk Expert™ software and incorporated supply chain delays applied to a CPM network of a typical medium-sized building project of 300 days' duration. The results of the simulation showed that the project's median delay was 67 days (22% of the project duration). The use of subcontractors in the project reduced this delay by approximately 45%. It was also learned that delays in material flow caused the biggest impact on the project, followed by labour flow, information flow and 'plant, equipment and temporary work' flow. These findings are an important measure of how much supply chain delays impact on project performance. © 2010 Taylor & Francis.

Publication metadata

Author(s): Hatmoko J, Scott S

Publication type: Article

Publication status: Published

Journal: Construction Management and Economics

Year: 2010

Volume: 28

Issue: 1

Pages: 35-49

Print publication date: 01/01/2010

ISSN (print): 0144-6193

ISSN (electronic): 1466-433X

Publisher: Routledge


DOI: 10.1080/01446190903365632


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