cover: Successful Construction Supply Chain Management by Pryke

Successful Construction Supply Chain Management

Concepts and Case Studies

Second Edition

Edited by

Stephen Pryke
Bartlett School of Construction and Project Management
University College London

 

 

 

 

 

 

 

 

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List of Contributors

Professor Stephen Pryke is Professor of Supply Chain and Project Networks in the Bartlett School of Construction and Project Management, University College London (UCL). He is founder and Managing Director of CONA – The Centre for Organisational Network Analysis at UCL (CONA@UCL). For many years he has acted as the Programme Leader for the MSc Project and Enterprise Management programme at UCL. Stephen sits on the Infrastructure Supply Chain Management Roundtable for the Royal Institution of Chartered Surveyors (RICS) and has carried out research commissioned by RICS on a number of occasions. Stephen has written five books for Wiley‐Blackwell and his work in the fields of supply chain management, the application of social network analysis to projects, and project management, has been disseminated in a wide range of academic journals.

Dr Simon Addyman has over 30 years' experience in the management of construction projects, predominantly public infrastructure projects, both internationally and in the UK. He specialises in the design of procurement and delivery models, focusing on development of interorganisational project capabilities. Simon was awarded Project Professional of the Year at the UK's Association for Project Management Awards 2013 for his work on London Underground's Bank Station Capacity Upgrade Project. Simon's research explores the (re)creation of organisational routines in temporary organisations, exploring the concept of ‘transitioning’ through project life cycle stages. Simon is a visiting lecturer at University College London and Kings College London, teaching project management and organisational design to postgraduate students.

Huda Almadhoob is a PhD researcher in the Bartlett School of Construction and Project Management at University College London (UCL). Prior to this, she worked as a lecturer in the Architectural department at the University of Bahrain after finishing her MSc degree in Project and Enterprise Management (with distinction) from the Bartlett School of Construction and Project Management at UCL. Currently she is working on her PhD research to establish a new theoretical framework for managing large construction projects, grounded in complexity theory with reference to social network theory and its analytical techniques. Her main research interests involve organisational behaviours, supply chain management, and the application of social network analysis in the study of construction project networks.

Dr Alex Arthur is a senior consultant at a London‐based construction practice, and an assessor for the Royal Institution of Chartered Surveyors. His PhD at University College London focused on the behavioural patterns of intuitive risk management systems. He has published a number of papers on construction risk management systems, intuitive decision making, and planning systems.

Dr Sulafa Badi is Associate Professor of Management and Organizational Behaviour at the British University in Dubai (BUiD) and Honorary Senior Fellow at the Bartlett School of Construction and Project Management, University College London (UCL). She started her career as an Architect before joining academia and holds an MSc in Construction Economics and Management and a PhD in Project Management, both from UCL. Sulafa's research interests include sustainability innovation in public sector procurement, supply chain management, and social networks in project and enterprise organisations. Her research has had both academic and practical impact and involved studies in the United Kingdom, China, India, and the Middle East. She examined a variety of contexts including large infrastructure projects, service ecosystems, small and medium‐sized enterprises (SMEs), and community stakeholders.

Rafaella Dana Broft started her career as Project Engineer to the Pavilion of the Netherlands at the World EXPO 2010 in Shanghai. After the project had finished, she joined University College London for an MSc in Construction Economics and Management and developed an interest in supply chain management (SCM), partly due to her part‐time job as a Procurement Manager at the London 2012 Olympic Site. Rafaella is currently working as an SCM expert for the Dutch construction industry, guiding representatives of both main contractor and subcontractor/supplier organisations on the implementation of Lean and SCM principles with the aim of creating successful construction supply chains. In 2016 she successfully applied for registration to study for a PhD at the Bartlett School of Construction and Project Management, increasing the connection between theory and practice.

Chris Candlish has worked in the water and wastewater treatment industry for nearly 40 years, starting as a process engineer and working as project, contracts, and commercial manager for an international water treatment company, and has been involved in many different types of project using a range of contract forms. He was involved in the bidding and negotiation of several major private finance initiative schemes for treatment works in Scotland. Chris has a degree in chemical engineering and has been responsible for the Supply Chain Business Unit in the @one Alliance which is delivering approximately £1.2 billion of Anglian Water's AMP6 capital delivery programme. He worked for Sweco, one of the @one partners, and was responsible for the ‘@one’ supply chain strategy and managing the procurement of goods and services for the alliance. A key aspect of this role was developing and integrating the supply chain within the @one Alliance into a collaborative ‘one team delivery network’ to contribute to the @one's successful outperformance. Chris had been working with University College London on developing an understanding of supply chain relationships and behaviours using econometric analysis and on developing collaborative relationships and working practices. Chris has also supported certain Infrastructure Client Group initiatives including Project 13.

Dr Juliano Denicol is Assistant Professor in Project Management at the School of Construction and Project Management, the Bartlett Faculty of the Built Environment, UCL. Juliano holds a Ph.D. in Megaproject Management from University College London. He also holds a Bachelor of Architecture and Urbanism (B.Arch.) and a Master of Research (M.Res.) in Industrial Engineering from the Federal University of Rio Grande do Sul (UFRGS). Juliano's research explores the management of interorganisational structures in major and megaprojects. Previous research included several iconic UK megaprojects: High Speed 1, Heathrow Airport Terminal 5, London 2012 Olympics, Crossrail, Thames Tideway Tunnel, and High Speed 2. His work on megaprojects has been regarded of high global impact, receiving research awards from the Project Management Institute (PMI), the Major Projects Association (MPA), and the International Project Management Association (IPMA). Juliano has received the 2019 Global Young Researcher Award from the IPMA and the 2019 Best Reviewer Award from the Project Organising Special Interest Group of the European Academy of Management (EURAM). He is part of Project X, a major research network that aims to improve major project delivery in the UK, established by nine universities in collaboration with the Infrastructure and Projects Authority (IPA), and the Cabinet Office. Juliano has worked as a supply chain management consultant at High Speed 2, the largest infrastructure project in Europe, and advisor to the European Commission on public procurement policies.

Dr Meri Duryan is a Lecturer in Enterprise Management at the Bartlett School of Construction and Project Management, University College London. She also leads optional MSc modules on Knowledge Management in a Project Environment and Change Management in Organisations. Systems thinking, value co‐creation, occupational well‐being, and knowledge and change management are the areas of her research focus. In addition to her academic and publishing background, she has wide‐ranging practitioner experience in delivering change and knowledge projects across different industries including IT, Construction, Healthcare, Transportation and Education. She also provided consultancy services and executive training working with the United Nations, World Bank, and the US International Development Agency.

Professor Andrew Edkins is Director of the Bartlett Real Estate Institute and Professor of the Management of Complex Projects in the Bartlett School of Construction and Project Management, University College London (UCL). Andrew's background is in the built environment and spans real estate, infrastructure, and the project delivery process. Andrew has worked in the industry with experience that ranges from complex commercial refurbishments through being part of the construction management team that built Chelsea and Westminster Hospital, to the delivery of complex private finance initiative (PFI) and public private partnerships projects. As a UCL academic, Andrew's first research projects led to two books on PFI. This success, coupled with experience gained working in the PFI sector, led to an extremely successful project with KPMG using the Knowledge Transfer Partnership scheme. Among many other research interests, a constant and principal research focus has been on projects and their management. This has included looking at typically strategic level issues that have been concentrated on the very earliest ‘front end’ of the project lifecycle as well as more recently in the transition to operations phase of the tail end of the project.

Dale Evans is Managing Director of the @one Alliance, the collaborative organisation formed between client Anglian Water and key supply chain partners. He is responsible for the delivery of a multibillion pound asset management plan (AMP) investment programme to upgrade and enhance water supply and recycling to more than six million domestic customers. Dale is chair of the infrastructure client group (ICG), a collaboration between the Institution of Civil Engineers and Infrastructure and Projects Authority (IPA), which represents over 20 key infrastructure clients. He has significant experience in operational management, programme management, and change management and has provided strategic board level advice on the set up and operation of utilities and construction sector alliances across the world. He was involved in the development of Project 13 which has been reshaping and improving productivity in UK infrastructure delivery. Within the @one Alliance, Dale set stretching targets that have driven industry‐leading improvements in project delivery, performance, health, safety and wellbeing, and in carbon and is a strong advocate for standardisation, offsite manufacture, building information modelling, fair procurement practices, and the stimulation of early supply chain innovation.

Professor Richard Fellows is an Emeritus Professor at Loughborough University and an editor of Construction Management and Economics. Richard has taught at a number of universities in the UK and other countries and was coordinator for research in construction management for the Engineering and Physical Sciences Research Council in the UK. He has obtained many competitive research grants in the UK and Hong Kong and has supervised a large number of postgraduate research degrees. He has been external examiner for various programmes and research degrees in universities and has served on boards and committees of leading professional institutions. His research interests concern economics, contracts and law, and management of people in construction – especially cultural issues. He was a founder and for many years was joint coordinator of the CIB international research group, W112 – ‘Culture in Construction’. Richard has published widely in books, journals, and international conferences and is qualified as a mediator.

Dr Andrew Knight is Dean of the School of Architecture, Design and the Built Environment, Nottingham Trent University. He has previously published a book and several academic papers in the field of construction procurement and supply chain management. He is a Chartered Quantity Surveyor and continues to engage with professional body activities especially in the field of professional ethics.

Professor Lauri Koskela is a Professor of Construction and Project Management at the University of Huddersfield. Previously he worked at the University of Salford as Professor of Lean, Theory Based Project and Production Management. Prior to that he was involved in applied research at VTT Technical Research Centre of Finland. Since 1991, Lauri has been involved in research on lean construction. His research has focused especially on theories of production management as well as project management, underlying lean construction. Lauri is a founding and continuously active member of the International Group for Lean Construction. He is Director and Trustee at Lean Construction Institute, UK.

Dr Anita Liu was Professor at The University of Hong Kong and, previously, at Loughborough University. She has taught at a number of leading universities in Hong Kong, the UK, and China. Anita has obtained many competitive research grants in Hong Kong and has supervised a large number of doctoral degrees. She has been external examiner for various programmes and research degrees in universities around the world and has served on the boards and committees of various professional institutions. Her research interests focus on research methods, and management of people in construction – especially cultural issues. She was a founder and was joint coordinator of the CIB international research group, W112 – ‘Culture in Construction’. Anita has published extensively in international journals and conferences and has authored several books and chapters.

Dr Emmanuel Manu is a Senior Lecturer in Construction and Project Management at the School of Architecture, Design and the Built Environment, Nottingham Trent University. He has researched, taught, and been involved in the management of projects in various capacities. Emmanuel is a reviewer for several leading construction management journals and continues to undertake and publish research in the areas of procurement, supply chain management, and sustainability in the built environment.

Dr Grant Mills is a Senior Lecturer in Enterprise Management in the Bartlett School of Construction and Project Management, University College London. His research is in the integration of the planning, design, construction, and operation supply chains to deliver value. He has undertaken extensive action and translational research and consultancy with world‐leading infrastructure alliances (including health and education social infrastructure). He has collaborated with organisations such as the European Investment Bank, Department of Health, Manchester City Council, Heathrow, Anglian Water, London Underground, Chartered Quality Institute (CQI) and the Environment Agency. He has been coinvestigator on various Engineering and Physical Sciences Research Council (EPSRC) research projects (∼£4.6 M) and knowledge transfer initiatives (∼196 K) and led extensive multisector infrastructure research into: efficient design and production management (e.g. as a design process management consultant to the construction sector); NHS infrastructure productivity (e.g. developing tools for the Department of Health); innovation in new supply and delivery model integration (e.g. as advisor to the Infrastructure Client Group); policy and operational productivity failure (e.g. through action research with leading infrastructure clients such as Heathrow and Department of Health).

Dr Niamh Murtagh is a Senior Research Fellow at the Bartlett School of Construction and Project Management, University College London. She is an environmental psychologist whose research examines sustainable behaviour, including energy, transport, and the built environment. Niamh's focus has been on applying insights from psychological theory to sustainable construction, investigating the psychological underpinnings of pro‐environmental behaviour in construction professionals. She has a particular interest in methods in construction research, including systematic literature reviews. Niamh has published in, and is a regular reviewer for, journals including Journal of Environmental Psychology, Construction Management and Economics, Frontiers, and Environment and Behavior.

Dr Eleni Papadonikolaki is a Lecturer in Building Information Modelling (BIM) and Management in the Bartlett School of Construction and Project Management, University College London (UCL), and a consultant in the area of digital innovation and management. She holds a PhD on the ‘Alignment of Partnering with Construction IT’ from Delft University of Technology, Netherlands, a MSc degree in Digital Technologies, also from Delft University of Technology, and an Engineering Diploma in Architectural Engineering from the NTUA, Greece. Bringing practical experience of working as an architect engineer and design manager on a number of complex and international projects in Europe and the Middle East, Eleni is researching and helping teams manage the interfaces between digital technology and management. She is teaching at undergraduate, postgraduate, doctoral, and executive levels. Currently she is a steering committee member of the UCL Construction Blockchain Consortium (CBC).

Professor Hedley Smyth is Professor of Project Enterprises at the Bartlett School of Construction and Project Management, University College London, where he has been a full‐time staff member since 2001. He has led teaching and research in the School regarding project‐based enterprises – how you manage the firms that manage projects. His research interests are organisational behaviour, especially regarding relationship management, trust, and emotional intelligence. Marketing and knowledge management are two functional areas of research focus. He has published on these topics in journal articles, book chapters, and sole‐authored books.

Dr Ruben Vrijhoef is a senior researcher at the Department of Management in the Built Environment at the Delft University of Technology. In addition he is a Professor at the Utrecht University of Applied Sciences in the field of urban construction. He received his PhD degree from the Delft University of Technology on supply chain integration in construction. His research expertise includes supply chain management and lean construction. In the field of construction supply chain management he has written multiple publications and edited the Construction Supply Chain Management Handbook with CRC Press, an imprint of Taylor & Francis Group.

Jing Xu is currently a PhD candidate at the Bartlett School of Construction and Project Management, University College London. Her PhD topic is about the value of trust in construction supply chains. Her research interests are mainly relationship‐related issues, e.g., trust, relational norms, and social capital, within and between project‐based organisations, particularly in the construction industry.

Preface

This book was prompted initially by a phone call from Madeleine Metcalfe – Senior Commissioning Editor, at that time, at Wiley‐Blackwell. Madeleine raised the issue that the book which I had previously edited, published in 2009 – Construction Supply Chain Management: Concepts and Case Studies – was due for a second edition. I was leading a group looking at supply chains and project networks at University College London at the time and the group discussed next steps for a possible second edition. We quickly came to the conclusion that there were a lot of new ideas and that while some of the content of the original book might benefit from updating, the second book would be mostly new material. Hence the book presented here appears as a new book alongside the original, rather than replacing it simply as a second edition of the original book.

My fascination with the idea of conceptualising construction activity as a supply chain that needs to be actively managed grew out of working alongside Slough Estates plc and British Airports Authority (BAA) in the early ‘noughties’ when both organisations were beacons of effective supply chain management. At that time Slough Estates were building design‐award‐winning buildings in 30% less time than their competitors and at a construction cost of 15–20% less than the current ‘Spons’ price levels. Pre‐Ferovial BAA, in their development of design standardisation and process, were also doing important work in this area. The Ministry of Defence was carrying out some ground‐breaking work in the public sector through its partnership with The Tavistock Institute. That so much of this innovative work was not sustainable through some difficult economic conditions subsequently and a good measure of politics, should not detract from the really important progress made. I am encouraged to hear that some of our major infrastructure client organisations are revisiting Holti, Nicolini and Smalley's (2001) excellent little book – The Handbook of Supply Chain Management.

More recently, I have been involved in the work of St George plc, the property developer. Through this I gained an intimate knowledge of their inspiring work on prefabrication and standardisation developed through their development of the St George Wharf site on the River Thames. I have also recently been taking an interest in the work of IKEA, both as a retailer and more recently as a developer of hotels. IKEA are not reinventing supply chain management (SCM) in construction, they are simply using the knowledge and expertise in SCM that they have gained as the most successful furniture retailer in the world, to produce excellent, high quality, stylish hotels at low cost. Watch this space!!

At its best the UK construction industry is world class and it is a testament to this that that I have been approached by supply chain managers from other sectors (most notably IT and manufacturing recently) who regard construction firms as experts in outsourcing and managing outsourced activities. IT professionals express the same concerns as construction professionals do in terms of dealing with the effective management of risk and lack of information and certainty.

Working on this most recent book on SCM has been a great opportunity to engage with some well‐established academic friends and acquaintances writing in the field of SCM. It has also been a really good opportunity to engage with some of the rising stars of the SCM field.

Whether you are a student of SCM or a ‘thinking practitioner’, I hope that you find something to stimulate thought in the pages of this book. I feel really privileged to have worked with the group of talented academics which came forward to work on this book.

Stephen Pryke

London, April 2019

Acknowledgements

This book has benefitted from the authors' exposure to some really talented supply chain management professionals in industry. The subject has been kept alive and vibrant by the activities of some very talented PhD students at UCL and I am proud to have been working with these capable young individuals, many of whom have contributed chapters to this book.

I would like to thank each of the chapter authors for their hard work and determination in producing chapters of the very highest quality. As always, I want to acknowledge the efforts of Karen Rubin, who encouraged me to complete the book through ill‐health and supported me in editing the book, as well as organising some of the graphics.

I want to acknowledge the support of the Bartlett School of Construction and Project Management, which effectively sponsored this book.

Lastly, thank you dear reader for taking an interest in our contribution to supply chain management knowledge. We hope that you enjoy it!