Supply Chain Management Assignment Help
Supply Chain Management is responsible for developing partnerships and relations that are reliable between the stakeholders and the suppliers of the organisation. It can be said that Supply Chain Management (SCM) is responsible for improving the visibility and velocity of inventory in relation to advancement in the construction projects (Jap, 2001, pp.10). With appropriate application of methods of SCM, organisations are able to achieve benefits both in the short and long terms. A number of studies have proved that the correct tools of application of SCM are responsible for providing 10% enhancement in the annual turnover of an organisation (Jap, 2001, pp.19).
Research Background
SCM has flourished in the realms of manufacturing having its origin from production that is just in time as well as logistics. In current times, SCM is the representative of a concept of autonomous management though logistics still holds dominance (Akintoye et al., 2000). The issues are perceived and sorted in the perspective of Supply Chain with the consideration of the interdependence that is existent in Supply Chain. SCM today has been an accepted phenomenon that is widely applied across all industries starting from various industrial manufacturing sectors, to retail and even software industry. Construction industry is one such industry which has picked up this practice a little late .However, construction happens to be one of the most booming sectors in UAE and some of the most astonishing buildings and man made wonders like the Burj Dubai, the underwater luxury resort of Hydropolis, various man made islands, indoor ski resorts and breathtakingly large malls are found here. But the SCM practices were not known and applied in this country even in the late 1990’s. So it becomes an extremely important research topic how UAE metamorphosed itself into one of the most prominent building and engineering nations in such a short period of time and what exactly is the scenario of SCM practices in the construction sector in this country.
Typically, SCM for construction based projects includes architects, engineers, primary and sub contractors, supplier of materials who get together to build a single project for the client. The complex concept of Supply Chain has been characterised by means of short term relations that are adversarial and driven by a bidding process that is competitive. Construction based SCM extends focus upon the strategies related to lean construction that include evaluation of suppliers, purchase that is just in time, selection of sub contractors and their relationship management, acquisition of equipments, sharing of information and management of project quality.
The construction industry in the United Arab Emirates initially adhered to the traditional method. With the huge development that took place in the last few years, the industry was successful in implementing newer concepts along with inclusion of newer technologies. There has, however, been inadequate research in the application of SCM in the construction industry of the United Arab Emirates (Fernie and Thorpe, 2007). In order to fill this gap and also have knowledge regarding the implementation barriers. In the United Arab Emirates, awareness is required for implementation of SCM related practices. Such effective and appropriate implementation requires the identification of the practical benefits as well as the barriers in the industry (Titus and Brochner, 2005, pp.71).
SCM refers to the classification of processes and flows that are taken into account for meeting all the requirements specified by the client. A number of stages are taken into consideration for the process of decision making and subsequent implementation of the processes (Saad et al., 2002). In general terms, Supply Chain encompasses the producers and suppliers; however, there is dependence on the retailers, consumers, logistic operations and so on. So it can be summed that stakeholders are also included in the process of Supply Chain.
The method of competitive tendering is the core of the construction industry. SCM was initiated and then developed successfully in the industry of manufacturing. The primary reason for implementation of SCM was for the purpose of regulation of materials. The most important decisions related to SCM can be categorised as the supply chain related business process, the supply chain related management component and the supply chain related network structure. For successfully meeting the requirement of SCM, the construction industry of the United Arab Emirates needs to implement a number of steps with the effective SCM integration to the already existent systems (Davis, 2008). It is not always easy to implement SCM in any industry unless a proper structure prevails in the organisations. SCM may face hindrance in the form of opinion, raw or obsolete information and details pertaining to the process of SCM which lead to disparity in understanding the client specification (Jap, 2001, pp.19).
The robust nature of the Chain of supply was identified with the design of a Building Management System that is sophisticated with numerous points of monitor and control. In recent times, the bigger establishments offer continuity in the realm of construction with more interest in building relations that are beyond the suppliers in the first tier (Tah and Carr, 2001). Integrated teams of supply are applied in the description of an integrated total supply chain that involves project delivery. This encompasses the primary contractor, sub contractor, designers, facility managers, suppliers and others.
Research Aims and Objectives
The overall aim of the undertaken study is to effectively and efficiently understand domain of good Supply Chain Management practices pertaining to the construction industry in general and the papers that are relevant to the study on the application of SCM in the construction industry of the United Arab Emirates which has helped in shaping the country into one of the most prominent of nations in the world with significant construction achievements in the recent years to compete with the best structures in the world .
The objectives pertaining to the research has close association with the problem statement and need to be summarised which can be achieved by means of the study undertaken. The objectives of the undertaken study are specific in nature which will effectively break down the parts in general and analyse the different research problem aspects. The objectives are also instrumental in clearly specifying the intend of each stage that would be followed in the following study.
The objectives of the study include the following:
- To review the significance of SCM in modern times.
- To identify the significance of SCM in the construction industry with special emphasis on the United Arab Emirates
- To review evidence that would be beneficial to provide direction to the construction industry pertaining to waste management and green construction practices.
- To make appropriate recommendation for practice and research in order to understand the effectiveness of SCM in the construction sector of the United Arab Emirates so that in the future more economic, environmentally sustainable and faster construction procedures are followed.
- To inform regarding policies and practices that are pertinent for SCM in The UAE and thereby understand the current gaps or lacking which may be improved by definite legislative measures by the government
The undertaken study will make a systematic review of relevant literature which relates to the application of SCM in the construction industry of the United Arab Emirates. In general terms, SCM refers to the management related to the goods flow. This includes storage and movement of raw materials, the inventory that is included in work in progress and the final products right from the origin point to the consumption point (Vrijhoef and Koskela, 2000). There exist a number of networks, business nodes and channels that are inter connected and are involved in providing services and products that are required by the ultimate consumers on the process of Supply Chain.
SCM refers to the designing, planning, executing, controlling and also monitoring of the activities related to supply chain having the objective which involve net value creation, building of an infrastructure that is competitive, leverage of global logistics and synchronisation of demand and supply with performance measurement on a world wide scale (Cooper and Lambert, 1997).
SCM draws immensely from areas involving operations management, procurement, logistics, and information technology and so on with the inclusion of an approach that is integrated. Supply Chain is applied in the description of the interconnected hierarchy existent in supply related contracts that is required for sourcing the components that are included in the process of construction (Wandahl and Bejder, 2003). SCM involves proper understanding of the segmentation and tracing of the services and products, people, organisations, activities, logistics, resources and information that are effective in transforming raw materials into products that are complete and fit to serve the purpose.
Also the various systems of procurement place the different elements related to SCM with diversified organisations and disciplines. Performance and responsibility gets cascaded down the chain of supply to the different suppliers who are otherwise not known to the management belonging to the higher strata of the chain.
A significant problem of the industry pertaining to construction states that the first two tiers of the chain of supply include agreements that are fairly onerous as there is development in the chain which results in the decrease of the contractual liabilities till the suppliers at the other end of the chain do not lock in (Wong, 1999). Unlike the industry of automotives, there exists a peculiar difficulty in the construction industry which states that each building is unique. The industry effectively contracts and expands which acts as a significant regulator of the economy widely (Wang et al., 2007). The key pertaining to the chain is provision of a strategy that is aligned with the program of the project. This is initiated in the stage of design and scopes the work in packages. Evaluation is done early reliant on feedback from the chain result in huge benefits in terms of value and cost (Xue et al., 2007). Capacity and capacity related to production in the market that has control by demand and supply has significance in order to avoid the bottlenecks of the program. For example, shortage of materials like steel ideally should encourage the designers to take into consideration a frame made of concrete. There are many new age construction materials and techniques which are being used by the architecture and engineers to bend a way across a wall of difficulties and limitations to improve upon the construction practices and challenge the forces of nature like gravity ,earthquake ,wind and erosion
Study 1: The four roles of SCM in construction; Vrijhoef and Koskela (2000)
It is believed that due to the peculiarities associated with construction, SCM plays specific types of role in the domain. The two pressing issues that are related to supply chain in construction include the increased weight economically of supply chain and the lag in development of productivity. The increase in productivity in relation to construction of building has been relatively slow though it cannot be considered adequate for compensation for the average level rise in the cost of labour. Relatively, primary contractors are involved in the purchase of higher material and labour. This constitutes 75% approximately of the turnover of such contractors. As a result of this, such contractors have increased dependence on the other elements in the supply chain of construction such as the sub contractors and suppliers.
It can be said that the study contributes towards knowledge the facts such as the explicit relation of generic methodology of SCM to the different initiatives that are existent in terms of development of construction supply chain, the empirical assessment of the current construction status in terms of supply chain, reliant on the new generic theories and empirical understanding of SCM, the role limitations and so on. The construction logistics and material handling should also be kept in mind. Another factor which affects the supply chain is the variance in the capacity of supply and ever changing on site demands. It can easily be taken into account that the knowledge related generic body that has been accrued in terms of the SCM framework tends towards better understanding of the problems of the construction SCM and guides towards the required direction that needs to be taken. It is required to implement the SCM practical methods for taking into account the specific construction situation and its related characteristics.
Study 2: Risk assessment model selection in construction industry; KarimiAzari et al. (2011)
A project is considered to be people who form an organisation being dedicated towards the deployment of a resource set having specific objective or purpose. Project management includes resource plan, directing, control for the achievement of objectives or goals that are specific related to the project on hand. There are a number of uncertainties in the industry of construction and such issues include the fluctuation in the profit margin of the organisation, the process of competitive bidding, alterations in the weather, productivity observed at site, political scenario of the nation, contract related rights, inflation, existing competition in the market and so on. Thus the number of risks in the construction industry is higher than the other industries. With the industry becoming more advanced, the uncertainties witness an increase also. It is required that the construction companies overcome such uncertainties for accurate assessment of the effect such sources have to determine the risks associated with each project and tackle them efficiently. A primary step in construction risk management is identification and assessment of the risks that are potential.
Though it is significant in the success of construction related project management, management of risks has not always got adequate importance as the other processes of the realm such as scheduling and scope. Risk management related process ideally includes identification of risk, assessment o risk and mitigation of risk. The method that has been proposed will be successfully able to discriminate among the methods of risk assessment with adequate clarity. The proposed method is the way of solving the TOPSIS of the risk assessment model under a fuzzy environment where there a number of decision makers and a committee to assess the minimum risk model The effective identification and subsequent assessment of project related risk formulate the crucial procedures that result in success. A number of techniques for the risk assessment related to construction project have been adhered to by the construction industry though adequate attention has not been given in the selection of a model that would be suitable for risk assessment.
Study 3: SCM in the United Arab Emirates Construction Industry; Albaloushi and Skitmore (2008)
SCM is considered to be for improvement of processes that helps in saving cost and enhances the revenue in terms of business strategy. Supply chain in terms of construction encompasses the processes of construction commencing from the primary demands of the client or the owner, then designing, constructing, maintaining, replacing and finally demolition. The different organisations who are part of the process of construction are also included such as the owner, the client, the designer, the general contractor, the supplier, the sub contractor and so on. Construction related SCM is considered to be the practice followed by the company groups as well as individuals who work within the network of processes that are inter related for satisfying the ultimate needs of the customers in a collaborative way while providing rewards to the chain members. SCM is most beneficial in the enterprise level involving a number of companies. SCM in construction does not refer to only the chain of businesses in construction with relations that are business to business but also refers to the network that includes a number of organisations and relations including information flow, material flow, products and services, fund flow that occurs between the designer, owner, general contractor, sub contractor and also the suppliers.
In United Arab Emirates construction companies involve foreign companies where each of them are associated with a minimum of one local company counterpart. Both the companies agree on the significance of SCM though the implementation is different for both. The approach is contrasting in terms of coordination and knowledge sharing. More awareness of the significance of these factors leads to the success in implementing of SCM later on. The Supply chain is not only related to single construction business but it is a multiple business and institution relationship where the entire UAE construction business is affected as they are interlinked to each other The difference in SCM of the two parties affects the supply chain implementation in the nation making it different from the other countries that are developed. This is mainly as the approaches are situation based different.
Study 4: A hierarchical framework of barriers to green SCM in the construction sector; Balasubramanian (2012)
The sector of construction is accountable for almost 40% of the total emission of carbon in the world as per the United Nations Environmental Program which is significantly higher in United Arab Emirates where the swift growth of the construction sector resulted in the rise of energy being used and subsequent greenhouse gas type emission. In the scope of framework development towards a model and adequate assessment of the barriers faced by GSCM in the construction sector of United Arab Emirates, there exists a gap in the knowledge which is significant to a nation like United Arab Emirates where the concept of GSCM is relatively new. The state government and the federal government require a framework for encouraging and regulating organisations in the adoption of a GSCM that can be termed as sustainable. Hence if an efficient framework is lacking in the evaluation and modelling of the barriers it may lead to the lacking of a green initiative amongst the stakeholders of the construction industry. In order to determine the gap, the queries that need to be catered to include knowledge about the barriers that are critical for the adoption of an effective GSCM in the construction sector of United Arab Emirates, the contextual relation between the barriers, methods of developing a framework that would effectively and easily display the complicated interdependence of the barriers and the classification of the barriers depending on their importance and criticality. The interpretive structural modelling (ISM) is put to effective use for the purpose of modelling and subsequent analysing of the complicated influence of the different criterions and also for the purpose of creating a framework of hierarchical structure amongst such criteria. The demands pertaining to complexity science is thus met and a systematic structure is displayed. The Driving and Dependence Power Analysis (DDPA) is also applied. .These form the crucial barriers in the GSCM adoption in the construction sector of the United Arab Emirates. The internal barriers are reliant on the external ones. Policies are required by the government to attract right resources.
Study 5: SCM in Construction: A literature Survey; Tiwari et al., (2014)
Huge projects of infrastructure construction execution include issues that are complex in terms of the attributes such as geography, atmosphere, topography and other constraints. In modern times, such work are mostly mechanised with the optimum use of machinery for desired output in order to achieve work quality of international standards specially for the work that are considered to be challenging. Basic techniques of SCM have witnessed extensive application in the construction industry. The approach included in mechanised construction of projects that involve large infrastructure demonstrate immense scope and successful implementation of the techniques all over the world have been achieved by a number of companies involved in construction. The concept application in the construction sector require the managers of supply chain to get out of the traditional mould pertaining to the manufacturing industry and make the idea of supply chain more centric towards the project than the organisation. This is required since the requirements of the construction project are immensely customised and supply chain need to adapt and duly redesign to match the priorities of the clients. The SCM provides the scope for constant improvement, better coordination at each level and a sense of coherent bonding in the whole process of supply chain. The various aspects of SCM includes the reduction in the onsite costing which can be done by ensuring a smooth flow of labour and work between the labours and contractors
The general requirements of the construction project clients include timely execution of the project with all work being completed as per the contract defined scope, standard quality in terms of execution in accordance to the terms of the contract, doing away with cost overruns and execution cost being within the project cost and the aim of the supply chain to fulfil the requirements of the client with a systematic approach to the
This chapter identifies and presents the five major case studies that have been taken for this research which will help to understand the research in the best possible way. The studies are varied and have approached the research from various angles in order to eliminate the possibility of missing out on something. All the studies are very recent and thus are intrinsically linked to the research and will help to contribute positive findings. This chapter also lays down the methodology followed for this research and how and why the particular studies have been selected with all the inclusion and exclusion criteria as well as details such as ethics and rationale behind the approach of the research
Result and Discussion
The study undertaken has brought together relevant findings from a number of research related articles having diversified methodologies which carves the pathway of the review study having a diversified characteristic. It has also been indicated by the research study that the strategies that work well for the application of SCM in the construction industry of the United Arab Emirates are effective for the nature of work included.
SCM (SCM) is the basic framework for the proper running and coordination in any construction business. The integration of SCM and the onsite activities in any construction site is an important aspect for the success of the venture and smooth transfer of products through the supply chain to the onsite location is required. But lack of conceptual deficiency and proper objectives the total supply chain is hampered, especially so in the United Arab Emirates where the availability of SCM is significantly inadequate. A strong understanding between the management related to the supply chain and the on site management and labour is necessary to manage with whatever resources are available and to put them to effective use. Improved, construction logistics and material handling leads to an effective SCM process. Prefabrication and industrialisation are the ways to remove the onsite activities from the production chain. Mainly three case studies have been formulated to analyze the ways of improving the SCM. The case studies deals with the lag in the supply chain with the construction onsite which is also called the time lag. The various logistical problems faced by the workers, negotiations of the products being delivered onsite. Risk assessment is another important concept in the SCM. Proper communication between the various parties involved both offsite and on site, the contractors and subcontractors who does not share a common and similar work ethic. Thus a collaborative team work is required for the success of a project and minimizes the risk associated with it. Though project management is dealt with much importance in any project risk assessment is often neglected. TOPSIS provides a good method of identification and assessment of risk and is more appropriate than other models like MCDM.
The risk factor involved in a project includes three parts-risk identification, assessment and mitigation. The method that has been inducted is an effective way to deduce the risk assessment model with proper accuracy. To solve the TOPSIS of risk assessment model under a fuzzy condition where there are a number of decision makers to deduce the minimum risk model and work upon that model which would guarantee that minimum risk is involved. Another model is the matrix method of risk assessment. That basic difference of the risk assessment model and the proposed method is the method of choosing a fuzzy TOPSIS over normal TOPSIS which deals in precise number. The fuzzy TOPSIS way of risk assessment is more flexible and accurate. But in spite of all these there is no optimum and full proof model that can be followed and the risk involved in each model varies. The SCM in UAE is different from that of other countries and the risk involved is drastic and no well formulated model is followed there. UAE being the largest construction site in the world with over 16,000 contractors and 34000 employees involved it is the largest business sector of UAE. SCM in UAE is not only limited to a single project but with the collaboration of different multinational enterprises and contractors failure in the implementation of a smooth SCM affects the total industry as each of them are interlinked. Improvement on site conditions and skilled management will help the supply chain. In UAE the current trend is the partnership between a foreign company and local contractors. As a result conflicting interest and difference in work ethics is prominent. So working towards a common goal with well defined guidelines will help in the improvement of SCM.
In the hierarchical framework there are certain barriers to implement the Green Supply Chain Management(GSCM) in the construction sites of UAE. These includes on one hand the failure of proper policy making by the government on the other hand lack of skilled professionals and lack of public awareness are also some of the reasons. The general public should be given the opportunity to choose from a range of sustainable options and for that the government has to take the initiative in encouraging them. GSCM policies are very much important as it reduces the carbon emission and helps in building the social responsibility image of the company following these guidelines .But in UAE the lack of proper governance has so far limited the implementation the green initiatives among different enterprises and stake holders of that enterprises. There are further scopes for the improvement of SCM process by ensuring a smooth flow of labour between the suppliers and contractors which would eventually decrease the onsite duration of the project and thus reduce the total cost of the project. But on based on the literary survey it can be concluded further improvement in SCM is required as many aspects of SCM are still unknown and unexplored. While the construction industry of the United Arab Emirates display to the world supreme infrastructural projects that are unprecedented and picturesque, the inability to implement an effective system of SCM has in a number of ways hindered the projects which would with the existence of a streamlined method of supply chain been facilitated notably.
The four roles of SCM in construction
As put forth by Vrijhoef and Koskela (2000), in traditional terms, it is not sufficient to have a control over the supply chain of construction but what is required is a shift in the methods for the management of such supply chain. There have been a number of initiatives related to SCM in the construction industry which were either partial or scattered. The roles that SCM plays include improvement of the interface present between supply chain and the site related activities, improvement of the supply chain, transfer of the activities to supply chain from site and lastly, integration of supply chain and site.
Reliant on the generic body and empirical analyses of the SCM related knowledge, there are objective and subjective limitations in the roles pertaining to SCM. The limitations that are subjective are because of the conceptual deficiency and the objective limitations are because of the environmental characteristics in terms of the addressed problem or construction peculiarities. It may be said that such limitations have hindered progress in the development of the construction related supply chain.
The fact that costs have been stressed in logistic initiatives is a limitation that is subjective. This resulted in the failure of addressing the impact of variability related to supply chain on the site assembly. The objective limitation includes the lesser focus on the role for improving the interface among supply chain and site activities in terms of the entire supply chain. In relation to the role of supply chain improvement, the objective limitation is caused due to the undisciplined and wayward nature of the activities of the customers. Both sides of the process of delivery have problems. Initially the definition of product is not complete and towards closure the date of delivery often is altered with chaotic conditions of installation. With regard to the role of activity transfer from site to supply chain, objective limitations are yielded. Pertaining to the role of integrating supply chain and site, a number of initiatives have objective limitations that are related to the characteristics of the constructed objects. A number of existent initiatives have logic that is based upon the idea that the effectiveness of SCM is more with such chains that are stable having products that are standardised. This role has certain subjective limitations as well. All the four roles of SCM are implemented to improve and for the betterment of the entire supply chain. The real estate owners should maintain a cordial relationship with the management of the SCM so that the flow of the materials is smooth and well oiled. The various initiatives that can be taken by the management are the coordination between the management on site and the suppliers that are involved which the interface between the supply chain and the on site management. The construction logistics and material handling should also be kept in mind. Another factor which affects the supply chain is the variance in the capacity of supply and ever changing on site demands. With the improvement of these two factors the improvement in SCM is possible. Prefabrication and industrialisation are the means of removing of removing the onsite activities from the production chain as a whole. To maintain the integration between the site and supply chain open building and step by step procedure which gives the users the opportunity to choose whether to postpone the construction of the interiors of the building or not. The SCM of pre engineered buildings are more stable as they have to choose from a limited set of options. The status of present construction chains have been observed in three case studies conducted in Netherlands and Holland. The first of the case study deals with the time required for the delivery and production in a housing project where the time buffer played an important role. The price negotiation, engineering, onsite installation was the major factors of the second case study which as a whole is known as the controllability problems. The issue of site logistics was the point of case study three where it dealt with the extra costs of logistics of building material in the site, bargaining and price calculations.
Thus as found in the literature review section SCM involves the primary and speciality contractors and subcontractors, engineers, architects, suppliers of materials who get together for building a project for specific owners. Now most of them belong to different set of organisations that ultimately the project manager has to handle in order to implement all the pieces of the jigsaw together in order to complete the project without any difficulty. The study basically emphasizes the fact that the basic framework of the SCM remains same as identified within the broad scope of the literature review with adjustments for the peculiar nature of the construction industry and taking the various environmental concerns into account.
As explained by Karimi Azari et al. (2011), construction related project would ideally require effective interaction between owners, contract based parties that are integrated, contractors, designers, suppliers, sub contractors, and so on who are not similar in nature. Hence collaborative team work is required where a common goal is shared for the completion of the project successfully. Aligned to the environment of group decision in terms of the problem, an effective yet simple mechanism is provided by the approach for making absolute judgements that are comparative in nature conventionally, which may discriminate methods of risk assessments with clarity.
Inspite of having significance in the realm of project management, risk management is not approached with as much rigor as the other processes of project management which include scheduling, scope and so on. The risk management process is inclusive of identification of risk, assessment of risk and mitigation of risk. The project related risk identification and assessment are considered to be procedures that are critical for the success of the project undertaken. A number of techniques of risk assessment pertaining to construction project are applicable in the industry of construction though the attention paid is insufficient in terms of a model that can be termed as suitable for the purpose of risk assessment. In order to suitably address this problem related to decisions, certain approaches of fuzzy TOPSIS have been developed including an algorithm that is effective for the improvement of effectiveness as well as quality pertaining to decision making. Good evaluation has been provided by TOPSIS and is considered to have more appropriateness than other models of MCDM. The project of construction requires interaction to take place otherwise dissimilar but integrated by contractual element parties such as designers, owners, suppliers, contractors, sub contractors, manufacturers and so on. For such reason, construction is known to be a process of collaborative teamwork having parties who have diversified functions, interests and objectives ye they share a goal that is common – the successful completion of the undertaken project. Aligned with the problem of the environment of group decision, the approach undertaken is effective in providing a mechanism that would be simple as well as efficient for making judgements that are absolute and comparative conventionally. The method that has been proposed will be successfully able to discriminate among the methods of risk assessment with adequate clarity. The proposed method is the way of solving the TOPSIS of the risk assessment model under a fuzzy environment where there a number of decision makers and a committee to assess the minimum risk model. Once the best model is chosen, the group of members make decision on which model to follow which would eventually minimize the risk and uncertainty element from the certain venture. Fuzzy set theory is one of the commonly practised methods which a fuzzy number A is defined. It is a subset of real line R and its member function f(a) represents the uncertainty related to a particular transaction of a process in a business. The normalised matrix method is another famous method of valuating the risk management aspect to the business and is commonly used. The MCDM ( multi-criteria decision making) problem have been proposed and improved upon by a number of scientists and researchers over the year but an ultimate and full proof algorithm has not been formulated yet and it varies from one company to another depending upon the dynamics and culture followed by them . The main difference between the risk assessment model and the proposed method is the method of choosing fuzzy TOPSIS over TOPSIS which deals in precise numbers. Fuzzy TOPSIS is more flexible in nature and more acceptable to the scientists.
The degree of satisfaction in each model is different though it deals with the basic three needs of risk management that is-risk identification, assessment and mitigation. The risk assessment is the initial step, followed by the assessment of the uncertainty followed by the mitigation of the risk by eliminating the risks involved through various proposed models and efficiency of the management. So the risk management of the uncertainty faced by them are completely different and indigenous to that institution itself.
This study is a special research of the collaborative risk at play in case of construction projects which inherently and evidently has a lot of risks and variables at play. Eliminating all the potential threats or chalking of a model which would minimize and mitigate the risks to an acceptable value is thus of imperative importance. This study thus has been successful in incorporating a certain aspect associated with SCM which did not form a part of the literature review studies. Like for example, the global recession of 2009 affected the growing industries in Dubai severely (Fellows, 2011).But incorporating this model helps to account for such unforeseen circumstances and helps to minimize the losses. So, this model is a much needed one which will provide a great support and fall back mechanism for the construction industry.
As opined by Albaloushi and Skitmore (2008), primary supply chain involves material delivery that is incorporated into the final products of construction, support chain including provision of materials and equipments for facilitating construction and the supply chain related to human resources that includes labour supply. Construction SCM is also known to be the coordination that takes place in the decision making of inter organisations as well as the integration of the primary business processes of construction.
A number of industries have used management and collaboration of supply chain in order to obtain competitive benefit. The adoption of SCM as compared to other industries has been slower in the construction industry as an effective management strategy. The opinion of the contractors has been taken into account since they play a significant role in the supply chain of construction. This exercise is considered to be timely in terms of the energy and interest that has been devoted for the debate on newer forms of procurement. SCM is aimed towards the improvement of trust as well as collaboration between the partners of supply chain which results in the improvement of visibility of inventory and improved velocity of inventory. In terms of mainstream management, ideas of construction management pertaining to supply chain have undergone evolution with influences that have corresponding influence from the theories related to production, strategic procurement and distribution. The extent of the awareness in the industry pertaining to the integration of supply chain and the related methods are yet to be established specially in countries like the United Arab Emirates. The factors that contribute towards the success of SCM include adhering to the procedures of the organisation while dealing with SCM, approaches of customer needs, technical background of supply chain, distributors, support received from the higher management, proper understanding of the environment of SCM and support extended towards the objectives of the system of production. More awareness of the significance of these factors lead to the success in implementing of SCM later on. The Supply chain is not only related to single construction business but it is a multiple business and institution relationship where the entire UAE construction business is affected as they are interlinked to each other. The main features of CSC are the converging supply chain where all the materials are brought to the site from different locations and the final product is assembled on site. Other than this a temporary supply chain of a specified make order chain can also be formulated on specific and rare occasions. Depending on the stated characteristics few features of SCM in UAE can be deduced depending upon the priority given to the supply chain or on site construction. Firstly the management should be well aware of the supply chain a smooth flow of labour and on site activities should take place. Secondly there should be a well coordinated relationship between the suppliers and constructors which would directly affect in reducing the cost and time. The business objective all the all the ongoing construction projects in UAE are not the same and so the supply chain has been difficult to manage. The UAE construction business has about 16,000 contractors and 340,000 workers employed making it the single largest business sector in UAE. The current trend in the construction business in UAE is partnership between a foreign and a local construction company. Though both the parties agree on the importance of SCM in the success of their particular project the way they perceive the role of SCM is different and so because of this conflicting interest of both the parties the role of SCM in UAE is unlike from the other developed countries.
This case study highlights the salient points that have been discussed in the literature review section of the research like the State of SCM practices in UAE together with a particular focus in the construction industry. In order to understand the current state of affairs of the practices of construction industry this case study plays a pivotal role describing the total number of personnel and primary stakeholders whose livelihood is intricately linked with this industry. The practices of SCM although have been long neglected by the practitioners of this industry have started to infiltrate the industry especially since UAE has been the house of some extremely high profile and risky projects which demands the best and all methods that can be applied to speed the process up, ensure flow of materials and yet stay within the budgetary constraints evaluated at the beginning of the study amidst rising costs all over.
As suggested by Balasubramanian (2012), a noteworthy strategy for taking up the challenge of reduction of carbon emission would be Green SCM (GSCM) and the subsequent enhanced sustainability due to the potential of improvement of organisational environmental performance. There have been attempts for measuring the practices related to GSCM such as implementation, advantages, performance and so on.
The highlights of the hierarchical framework of barriers to green SCM in the construction sector include the extensive identification of the barriers that are existent among the aspects of economy, environment, technology, society and culture for the adoption of an effective system of GSCM in the construction sector of the United Arab Emirates. Secondly, a hierarchical modelling that is scientific of the barriers in order to understand their significance in the process of decision making. Thirdly, the extent of potential of the adopted framework with regard to other countries of GCC that include Qatar and Oman who share similar Gross Domestic Product, e – readiness index and human development index.
There exist certain limitations which are mainly because of the inherent subjectivity of the approach of ISM. The opinion put forth by the experts in the realm may be considered to be biased without effective reflection of the setting in the real world. There also is a dearth of numerical validation of the results thus obtained. The structural equation model which is a quantitative approach may be applied to evaluate the validity of the ISM model that has been developed with numerical measurement of the association strength of the barriers. Balasubramaniam through his research has identified the factors that are eternal to the establishment which include lack of professionals who are skilled and sustainable, lack of developers and green suppliers, inadequacy of government support, inadequacy of awareness of the public as well as demand and uncertainty prevalent in the market. These form the crucial barriers in the GSCM adoption in the construction sector of the United Arab Emirates. The internal barriers are reliant on the external ones. Policies are required by the government to attract right resources. A quantitative based approach such as the Structural Equation Modelling (SEM) can be handy to test the validity of ISM models. The measurement of association between the internal and exterior barrier can also be made with this approach. Future prospects involve amalgamation the ISM and SEM models to form a country wide integrated framework. Lack of public awareness and appropriate planning by the UAE government are some of the major problems in implementing the GSCM model successfully. The external barriers should be overcome by the management itself to clear the path for the public to embrace this model. The government should device methods and polices to attract skilled professionals and the general public as a whole. The people should be given the choice to make sustainable choices and for that the government has to take proper steps for the planning and execution of the GSCM policies. The GSCM policies are really important for the construction sector as it reduces carbon emission which results in the betterment of the environmental result of the construction company. The lacks of green initiative among the stakeholders of the construction companies are a direct result of the failure of the government to construct and formulate a proper framework for the smooth running and implementation of the GSCM policies.
Environmental sustainability has been a point of discussion since the 1980’s and today it is one of the most important considerations in the world over. Using construction materials such that they can be reused recycled or iteratively used in some way or the other has been the goal of enginners, architects and project managers all over. Many countries have specific site waste management plans that has to be submitted prior to the inception of the project, after which the project gets a go ahead .So green initiatives have to be taken considering the long time future of the environment of the country. So implementation of GSCM is a possible solution to the problems posed by environmental issues. The idea is to close all possible angles when it comes to the environmental issue from foods, to cars, to carry bags and even construction materials and supply.
As explained by Tiwari et al., (2014), supply chain is applied in the construction sector for the purpose of better coordination and costing. A number of models related to decision making have been formulated with regard to specific areas of the supply chain in construction that include risk management and trade off between times – cost. The flow of information, material and fund is significant in the construction project supply chain hence it is required to explore the areas of information flow as well as material flow. The feasibility in terms of SCM application has also been duly worked upon particularly in geographical application in countries like United Arab Emirates, United Kingdom, New Zealand, Indonesia and so on. It has, however, been found that there is not too much evidence regarding a complete solution for the application of construction based SCM. The models that had been developed extend focus on areas that are specific which do not offer a solution that is comprehensive.
The advantages of SCM in the realm of construction and the related barriers in terms of its implementation have been looked into. The advantages include the fact that the enterprise is considered to be a single unit. It is said that SCM has the visibility and permits due development of a consistent plan pertaining to demand and supply from customers to suppliers. Thus for somebody involved in planning, will be able to devise a total plan of any movement via the chain in terms of specific products. This may occur between the different functional groups or between a number of independent companies in the channel of distribution. This is turn provides services that are considered to be better with inventory reduction, paperwork reduction, consolidation of distribution centres and transportation cost reduction. The barriers include inadequate guidance in alliance creation with the partners of supply chain, failure to formulate alliance monitoring measures, inability of broadening the vision of supply chain beyond product procurement or distribution for encompassing bigger processes of the business, inability of integrating internal procedures of the company, inadequate trust inside as well as outside the company, resistance on the organisational level to the given concept, inadequate system of integrated information and firm linking electronic commerce and inadequate set up on the organisational level that may be considered suitable. The SCM provides the scope for constant improvement, better coordination at each level and a sense of coherent bonding in the whole process of supply chain. The various aspects of SCM includes the reduction in the onsite costing which can be done by ensuring a smooth flow of labour and work between the labours and contractors. The trade off between time and cost is another important factor. The orderly management of the supply chain will ensure that the onsite working flow is fast which would eventually reduce the duration of the project resulting in cost saving. In case of the UK aerospace industry the SCM is well established unlike construction based companies where exists a chaos between the supply chain and the production sector. One of the main reasons to incorporate SCM is to maintain and establish a well oiled integrated system in the supply chain. A sense of bonding and well tuned understanding is required between the SCM and the onsite contractors for the smooth running of a project. Various numerical models of SCM have also been formulated but the optimality of the methods is debatable and it varies for each company or institution. Another important aspect is the smooth flow of material which is directly related to SCM is a deciding factor in a project's success.
But on a whole based on the literary survey it can be concluded that the documentation and extensive research that is required in SCM is still not enough and there is further scope of improvement because many of the sectors are still untouched and there are many unchartered territories to be explored.
Chapter 5 – Conclusion and Recommendation
While conducting the above review, the studies that were not published or those that were not published in the English language as first language were not included as part of the study. There is a possibility that this may have an effect on the review result outcomes since a significant study may have to be excluded due to the reason given above. The restrictions from the academic point of view may pose to be limitations for the reviewer in the selection 0of studies without any external aid. There were also scopes of selection based bias as the selection made by the reviewer would have the influence of his subjective view. The process of recommendation selection of study and procedure of extracting data to be with minimised errors need to be done by at least two individuals in order to minimise selection bias which had not been adhered to. The selected studies were pertaining to the United Arab Emirates construction sector, hence availability of data was much less as compared to other nations such as the United Kingdom. Thus the study has been restricted to a limited information source as details pertaining to other countries were considered to be invalid.
The following recommendations were made by the reviewer after extensive consideration of the entire study undertaken:
For researchers and academics in the field of construction and supply chain management
- There is a serious requirement to educate people regarding what exactly is SCM and its appropriate application in the construction industry of the United Arab Emirates. Such educational initiatives will help in the exact application of the concept and the required procedures of SCM. It is believed by the reviewer that if SCM is not appropriately applied in any sector including construction sector, the entire processes get hindered and might take the wrong direction or get delayed. More in depth research would be beneficial to know about the pros and cons of the application of SCM in the construction industry with emphasis on the market in the United Arab Emirates. Adequate scope and funds need to be allocated for such research for further studies that would take place on the similar topic.
- SCM has a number of benefits which are befitting for a number of industries, which among such advantages would be appropriate for the construction industry need to be judged and adequately evaluated. The data available on this aspect pertaining to the United Arab Emirates is limited. Hence more exploration and studies in this realm is required.
For practitioners /researchers in field/construction industry/.
For practitioners and project managers
- Experts need to be involved in the application of SCM to ensure that the construction sector of the United Arab Emirates receives adequate benefit from such application. People who are involved in the different processes that are encompassed in SCM should have adequate knowledge about its function. The parties involved in such management should work in collaboration to each other so that their input in the techniques and procedure add to the benefit drawn from the application of supply chain.
- Even if the process of SCM is adhered to, there are a number of factors that may act as an obstacle in its effective application. Those need to be done away with to enhance the output of the construction industry. Constant out of the box thinking benefits to alter the situation without involving too much drawbacks.
- SCM is a process that has been developed upon over the years. It is essential to be always updated on the latest application and effectively apply it to the construction industry in order to achieve the best possible results. Every new concept, idea or technique initially faces resistance as people are wary of change and take time to accept and apply it. With supply chain involving such huge number of parties from contractors to designers to clients to suppliers, the evolution of the concept may take some time to sink it. This does not necessarily mean that the industry will give up on its application. Once the benefits and application advantages are viewed and acknowledged by the parties, they too would want it to be appropriately used as it benefits the entire working of the sector. Though the industry processes are time pressed, this much time has to be spared for the acceptance of an effective system of supply chain which would be beneficial for the organisations and the industry on the whole in the long run.
- Result Conclusion
The undertaken study was successful in completing all the aims that were taken into consideration by providing the review result and making effective recommendation that would provide more light to the topic and benefit the entire study in the future. The primary effects of SCM in the construction industry of the United Arab Emirates were successfully detected. The recommendations made pertaining to the current study extends focus clearly on the areas that require immediate attention and adequate action to tackle any issues that may arise. The implementation of the recommendations made will definitely add to the studies of the future. Education is a primary element in the study undertaken and with building awareness the study may be improved upon. It can thus be effectively concluded that though the construction industry of the United Arab Emirates has enhanced with leaps and bounds, the support facility of an efficient system of SCM is yet to be termed adequate in the nation. The industry is growing notably and with an efficient SCM method being incorporated, the sector would be highly facilitated, which has not been the case so far.
A research related dissemination is such a step that is carefully sought and thought while seeking surety regarding the research related findings and their appropriate provision to such individuals who need to be aware of the results for future application and practice. It is the wish of the reviewer to share his experiences and view points and also the findings of his study in order to build more awareness regarding the topic and aid future research work.
The outcomes obtained from this particular study will be shared so that more information on the topic is made available. The work will also be made available on the internet to be used as study material by people seeking knowledge in the effect of SCM in the construction industry of the United Arab Emirates. A copy of the research would also be made available in the institute library for helping students obtain knowledge in the area. Sharing the research as a publication and social networking sites would also be a thought that would be taken into consideration.
Conducting research and writing a dissertation based on the information obtained might seem like a simple task, but in reality it can be quite challenging. A huge amount of brain storming and out of the box thinking is required along with linking of information. At the very initial stage of my course, I had already determined to do adequate research while doing my dissertation as this would reflect on my curriculum vitae for the rest of my life. Research work of this stature is not something that is done every day and it required a huge lot of hard work and immense dedication, not to mention time, energy and sleep deprivation. While doing this study, my knowledge regarding research methodologies got a boost. The toughest part of the entire dissertation according to me was to discuss and criticize review studies that had already been established. There were a number of occasions where I thought I am going nowhere where a little pep talk from my peers and a slight moral boost from my supervisor did miracles and got me back on track. I tried to maintain a superior quality of the research to the best of my ability. I personally am glad that while doing the literature review of the studies that are existent, I was able to bring forth the view points of different authors meaningfully with regard to the selected topic. A major setback for me was to not find too many studies on the selected topic in the regular search engines. Though there were adequate studies on more popular countries that had global priority, United Arab Emirates known for its infrastructural supremacy was one nation on which too much information was not available. Time crunch is something every student faces all through their life. Though there was a pre set plan to do adequate research, how time flew by and how I had to work on my dissertation along with the ongoing course is something I know. There were frustrating moments when the search engine was as blank as me but the sense of achievement that one relevant study being displayed on screen is something that is beyond description. The dissertation surely made be better in using search engines with different permutation and combination of terms. The completion of the study gave me a sense of achievement and I hope I live up to the expectation of the people who had faith in my ability. Also, I would be very happy if the study conducted by me has enough relevance not only in terms of grades I get, but to provide to future researchers adequate information on the topic.
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