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Page 1: Material Delivery Problems in Construction Projects

ARTICLE IN PRESS

0925-5273/$ - se

doi:10.1016/j.ijp

�Correspondifax: +358 9 451

E-mail addr

mikko.karkkain

Int. J. Production Economics ] (]]]]) ]]]–]]]

www.elsevier.com/locate/dsw

Material delivery problems in construction projects:A possible solution

Timo Ala-Risku�, Mikko Karkkainen

Department of Industrial Engineering and Management, Helsinki University of Technology, BIT Research Centre,

P.O. Box 5500, FIN-02015 TKK, Finland

Received 16 April 2004; accepted 21 December 2004

Abstract

Emerging project management methods for construction projects generate new kinds of challenges for the delivery

process of materials. The rationale of such methods is to create short-term schedules, based on a constraint analysis of

resources, for project tasks. This approach has two requirements for material deliveries: transparency of material

availability and short response times in the supply chain. We propose a potential solution for managing the material

logistics of construction projects. The empirically validated solution proposes a shipment tracking-based approach to

provide inventory transparency, and a pro-active delivery approach for efficient material deliveries.

r 2005 Elsevier B.V. All rights reserved.

Keywords: Supply chain management; Logistics; Inventory transparency; Construction; Tracking; Project management

1. Introduction

New project management methods that addressthe shortcomings of traditional methods by addingflexibility to the execution of construction projects,create additional challenges to material deliveryprocesses (e.g. Ballard, 2000; Choo et al., 1999;Chua and Shen, 2001; Koskela and Howell, 2002).The new methods acknowledge the challenge ofcreating an exact schedule beforehand for a large,

e front matter r 2005 Elsevier B.V. All rights reserve

e.2004.12.027

ng author. Tel.: +358 9 451 3694;

3665.

esses: [email protected] (T. Ala-Risku),

[email protected] (M. Karkkainen).

complex project. Instead, such methods use con-tinuous planning on a single construction tasklevel. The basic philosophy underpinning themethods is to create short-term schedules forproject tasks based on a constraint analysis ofproject resources. Such an approach places tworequirements for the material deliveries: theanalysis of material constraints requires transpar-ency of material availability for site inventoriesand other stages of the supply chain, and the shorttime-span of planning demands short responsetimes along the supply chain.The aim of this paper is to present a potential

solution for managing the material logistics ofconstruction projects. The solution consists of a

d.

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T. Ala-Risku, M. Karkkainen / Int. J. Production Economics ] (]]]]) ]]]–]]]2

shipment tracking-based approach to provideinventory transparency, and a pro-active materialdelivery approach for timely material availability.In the first section, we will review literature relatedto the new project management methods and theimplications for material replenishments of con-struction projects. In the second section, wepresent our research problem and discuss ourresearch design. The proposed solution for materi-al replenishments of construction projects ispresented in the third section; with the final sectionproffering concluding remarks and direction forfurther research.

2. Literature review

2.1. Challenges in prevalent project management

practice

The prevalent project management methodshave recently been stated as inadequate forcontrolling the progress of construction projects(e.g. Ballard, 2000; Choo et al., 1999; Chua andShen, 2001; Koskela and Howell, 2002). Some ofthe strongest opinion has been presented byKoskela and Howell (2001, 2002) in their argu-ment that the underlying theory of projectmanagement is obsolete and that no explicitlystated theory exists on project management. Theirmain objection is that planning, execution, andcontrol are not utilised in practice as suggested byPMBOK Guide of Project Management Institute.In a similar vein, Johnston and Brennan (1996)

have argued that an embracing interpretation ofproject management is ‘‘management-as-planning’’,based on a strong causal connection betweengenerating a plan and the resulting operationalactivity. They conclude that such a straightforwardcoupling is not feasible, since no plan can ever bedetailed enough to enable the mere executionwithout feedback from the environment. Koskelaand Howell (2002) note that reliance on a generalplan leads to poor short-term planning. Theseobservations are confirmed, for example, in a studyof six construction projects sited in the UnitedKingdom and Brazil (Santos et al., 2002).Koskela and Howell (2002) recognise that

maintaining a comprehensive up-to-date plan is

problematic. Therefore, due to an out-of-dateplan, the tasks pushed to execution cannot oftenbe performed as they lack either predecessor tasksor other inputs. As Johnston and Brennan (1996,p. 382) state, ‘‘That this approach works at all islargely attributable to tacit knowledge and im-provisation at the operational level’’. From thepoint of view of the supply chain, however, thismanagement approach and last-minute improvisa-tion, leads to inefficient practices to guard againstmaterial shortages. Materials are often orderedeither very late; invariably leaving the supplierwith uncertain demand and high material buffersto guarantee service level; or too early leading tobuffering at the site (Vrijhoef and Koskela, 2000).There has been a clear need for a more

interactive management method, where the sub-sequent steps to be taken in a construction project,are determined from the current status of theproject, not from predefined and outdated sche-dules which are obsolete for controlling practicalactions. To overcome the challenges of traditionalproject management, flexible project managementpractices have been developed (e.g. Ballard, 2000;Chua and Shen, 2001). In the following, we reviewthe Last Planner System of Ballard (2000) as anexample of such approaches. The Last PlannerSystem has been used in the production control ofconstruction projects in the United States (Ballard,2000), Brasilia (Conte, 2002; Soares et al., 2002),Chile (Alarcon et al., 2002), Ecuador (Fiallo andRevelo, 2002), Peru (Ballard and Howell, 2003),the United Kingdom (Townsend et al., 1999),Denmark (Bertelsen and Koskela, 2002), andFinland (Koskela and Koskenvesa, 2003).

2.2. Last Planner—a novel method for managing

projects

The Last Planner System commenced develop-ment in 1992 by Ballard (2000). It is a projectexecution system that uses the overall project planas the general framework, but suggests that theday-to-day activities of the production should bemanaged by a more flexible approach that iscognisant of the actual progress of the project. Theunderlying philosophy is to ensure that all theprerequisites needed for performing a distinct

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construction task are in place before it is assignedto a work group. This is the task of the ‘‘lastplanner’’; and therefore Last Planner has beenused to mean both the system and the personresponsible for the final preparation of tasks(Ballard, 2000).The four main categories for any executable

project task are SHOULD, CAN, WILL, andDID (Fig. 1).

SHOULD: tasks that need to be performed inthe near future according to the overall projectplan,

CAN: tasks that have all their prerequisitesready: e.g. previous project steps are completed,necessary materials are at hand, and work forceis available,

WILL: the tasks that are commenced before thenext planning round,

DID: the tasks that are completed.

From the perspective of the supply chain, themost important feature of the Last Planner Systemis the way that the logic generates a backlog ofviable construction tasks by undertaking a con-straint analysis. Traditionally project tasks arepushed to execution, based on what SHOULD bedone in the near future. However, within the LastPlanner System, the upcoming tasks are evaluatedin greater detail. To create the buffer of tasks thatCAN be done, the last planner places tasks thatSHOULD be done on a near-term schedule and

SHOUL

CANLAST PLAN

PLANNINPROCES

PLANNINGTHE WORK

ProjectObjective

Information

Resourc

Fig. 1. The Last Planner Sy

analyses various constraints for each task (e.g.prerequisite tasks, available workforce, equipmentand materials). If the planner thinks that any ofthe constraints of a specific task cannot beremoved in time, then the task is shifted to a laterdate on the schedule. Only when all constraints areremoved, is the task allowed in to the workablebacklog. The objective is to constantly have abacklog of work that CAN be performed, andbased on the backlog the actual work plan (WILL)is created.The aim of the constraints analysis of Last

Planner is to ensure that all resources are availablefor a given project task at the time of the execution.Therefore, from a material replenishments per-spective, information regarding the availability ofthe relevant material is crucial for the constraintsanalysis to function. Case studies on Last Plannerimplementation show that defective material de-liveries account for 8–25% of the non-completedtasks (Koskela and Koskenvesa, 2003; Fiallo andRevelo, 2002). This indicates that in practice it isdifficult to ensure that all tasks allowed into theCAN backlog have the needed materials.

2.3. Material flow management challenges of the

Last Planner method

There are two distinct material flow manage-ment challenges with the Last Planner methodo-logy that have not previously been addressed indetail. First, the last planner needs to have access

D

WILLNERGS

Productiones DID

stem (Ballard, 2000).

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to comprehensive information on materials avail-ability for individual project tasks; and second, thematerials should be reliably available withoutexcessive inventory build-up at the project site.The challenge in providing the last planner with

materials availability information is due to the siteinventory control methods. Frequently, the mate-rials on site are not registered in any inventorycontrol system, and so need to be visuallycontrolled to ensure that they are available(Halmepuro and Nysten, 2003; ISI Industry Soft-ware, 2003). In some cases, site inventories aremonitored with a spreadsheet application. But theinventory records tend to be flawed due to manualprocesses and inconsistent registering of thematerial movements (Harju-Jeanty and Jantti,2004). This is a serious problem for the constraintanalysis of the Last Planner approach, as itdramatically increases the workload of the plan-ner. More effective means for creating visibility tosite inventories are therefore needed.In an endeavour to reduce the risk of not having

the materials at hand when needed, projectmaterials are often ordered well in advance.However, excessive site inventories create pro-blems for materials handling at the site and there isa risk that materials get lost, broken, or stolen(Alves and Tommelein, 2003; Bertelsen andNielsen, 1997; Karkkainen et al., 2003). Whenusing Last Planner, such issues increase theprobability of faulty material constraint analysesthat rely on inventory records. As a consequence,orders that are raised too early for site use may infact increase the risk of not having the taskmaterials available at the time of executing a task.The challenge with excessive material buffers at

the site can be addressed by shifting the inventoryresponsibility upstream to suppliers and by accu-rate scheduling of material orders when creatingthe initial project plan, as suggested by Bertelsenand Nielsen (1997). However, this approach is notfeasible with the Last Planner approach, and itsflexible near-term project schedule. The timing ofthe deliveries needs to be adaptable to respond tothe inevitable changes in the near-term schedule.Therefore, the suppliers need to stay informed onthe progress of the project, so that they can reactto the actual needs of the construction project and,

proactively, inform the last planner of potentialdisruptions that may lead to material constraintsfor future tasks.However, providing tools for communicating

site inventory levels and updating project sche-dules among the project participants is not withoutproblems. The most significant challenge ofimplementing transparency tools in project supplynetworks, is that the networks are mostly createdfor a single project, and disbanded after the projectis completed (Dainty et al., 2001). This hasresulted in low long-term commitment, which isneeded for most information technology develop-ment projects (Voordijk, 1999). Thus, due to theshort time span of the usability of the solution thatseek to increase inventory transparency in projectsupply chains, they should be speedy and easy totake into use, and not demand significant invest-ment (Cheng et al., 2001). Supply networks ofconstruction projects are also usually characterisedby the inclusion of several small- or medium-sizedenterprises (Dainty et al., 2001), which furtherincreases the need for low-cost, easy to implementtools (Anumba and Ruikar, 2002; Elliman andOrange, 2000).

3. Research problem and solution design

Based on the identified management challengesin material flow, the following research problem isproffered: How to develop an effective materialdelivery model for construction projects with near-term task-level scheduling?The literature identified that specific require-

ments were required for any solution; hence twomore detailed research questions were developed:

(RQ1)

How to gather and convey materialavailability information to projecttask scheduling?

(RQ2)

How to organise efficient materialdeliveries for projects with near-termscheduling?

The methodology used in the research isbased on the ‘‘Innovation Action Research(IAR)’’ approach (Kaplan, 1998). The aim inIAR is to initially document major limitations in

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contemporary practice, identify a new concept toovercome the limitation, and to continually devel-op the concept through publication, teaching andactive intervention in companies. Holmstrom et al.(2004) have recently developed the frameworkwith the aim of providing clearer support forstudying the role of new technology in supplychain management.When working with a group of project supplier

companies, we identified extreme difficulties inbuilding transparency in project supply chains. Thecompanies were not able to inform their customerson the availability of the goods they were supplying.One of the major difficulties was to identify whatgoods had already arrived at the project site, as wellas locating goods at site inventory. During theproject, a simple tool for tracking the goods wasdeveloped by Framling (2002). The tool is freelyavailable at http://dialog.hut.fi/.Later, in another project case study, a supplier

company had problems with the accuracy ofproject materials deliveries. This caused significantdifficulties in the management of the constructionactivities. It was even claimed that materialshortages occurred far too often for successfuloperations to be possible. Consequently, ourresearch group developed a potential solutionmodel to these challenges: namely, to adopt anear-term project scheduling approach that tookinto account the constraints proposed by thematerial delivery problems. To link our proposedsolution to the current body of knowledge, weperformed an extensive literature survey; and thisresulted in identifying the Last Planner projectmanagement approach. Moreover, we recognisedthat our replenishment model was a valuablecomplementing element for the Last PlannerSystem, as our model addressed the transparencyand delivery accuracy requirements posed by thematerial delivery process.In this paper, we present the delivery model and

its linkages to Last Planner type project manage-ment. The tracking-based transparency approachhas been validated in two pilot installations(Karkkainen and Ala-Risku, 2003), as proposedby the IAR framework. As yet we do not haveexperiences of the delivery-scheduling model in areal commercial setting, but the model has been

validated by expert group discussions in onesupplier and one installation company operatingwith construction projects, following the IARguidelines.

4. The proposed material delivery solution

We will present our proposal in two parts. First,we address the transparency needed for determin-ing material constraints. Then we demonstratehow the near-term scheduling of project tasks canbe used to help the supplier to provide timelydeliveries. Finally, we provide an overview of thewhole material delivery solution.

4.1. Visibility to material constraints

An initial challenge of the material deliveryprocess for the task-level project managementapproach, is to provide the task planner withreliable information on material availability. How-ever, as previously discussed, creating transparencyto the materials has proved complex in construc-tion projects, whether the inventory is located atthe site or elsewhere along the supply chain.We addressed this challenge by developing a

tool for creating inventory transparency based onshipment tracking. The tool has been designed forsite inventories and short-term storages that arethe most critical ones for the task-level constraintanalysis of a project, and where traditionalinventory transparency solutions are extremelydifficult to apply. The material inventory informa-tion is established using the tool by tracking theincoming shipments (materials received at the site/warehouse) and outgoing materials (materialsinstalled/sent from the warehouse) (Karkkainenand Ala-Risku, 2003). The tool is also suitable forbuilding transparency to inventories located in anyother section of the supply network (e.g. at thesuppliers or sub-suppliers).Building tracking-based inventory transparency

requires that deliveries are equipped with anidentifying code (e.g. order number or a deliverynumber), which can be used to link the shipmentthat arrived to the materials it contains. Whenpackages arrive at or are taken out of a given

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Project Task_29

2 x ITEM A

T. Ala-Risku, M. Karkkainen / Int. J. Production Economics ] (]]]]) ]]]–]]]6

storage location, these codes are registered with atracking system. The tracking software thenconveys the tracking code, the location of theinventory and the time to a tracking database asillustrated in Fig. 2.Using the inventory information with the

material constraint analysis to determine task-level materials availability requires that there isalso a link between the materials and tasks, i.e. thematerial needs of each task are known. Thematerials needed for a task can be thought of asa bill of materials (BOM) for a task. An exampleBOM for a project task 29 is illustrated in Fig. 3.If the planner is provided with availability

information on all the identified task materials,the material constraints for the project task can bedetermined. The linking of project tasks and therespective material availabilities can be visualisedas illustrated in Fig. 4. When equipped with thematerial availability information, those projecttasks in which materials availability acts as aconstraint can be detected, and rescheduled to alater date where the material needs are satisfied.If the inventory transparency is based on

shipment tracking, the following information canbe interrogated from the tracking database:

ITEM XYZ

– the location of the different goods needed for acertain project task,

5kg ITEM C

materials that are at a given location (e.g. siteinventory or intermediate storage inventory),

the location of a certain shipment, Fig. 3. An example bill of materials for project task 29. – the dwell times of materials in a specific location.

Shipment trackingsystem

IntermediateStorage 1

IntermediateStorage 2

TCIIIII

Fig. 2. Inventory transparency pr

This information is sufficient for checking theavailability of material for the project tasks; and itcan also be used to optimise inventory allocationin the supply chain.If further database tables containing the delivery

dates promised by the suppliers, the ordering date,and shipping date is also connected to the trackingdatabase, then the following performance mea-sures can be generated:

racod

D_2D_6D_1D_5D_1

ovi

the on-time delivery rate of a supplier,

� the lead-time of orders (from ordering toreceiving of the goods),

the lead-time of deliveries (from the dispatch tothe receiving of the delivery),

and, if the packages are traced in severallocations, the de-constructed lead-times can beused for performance analysis of the supplychain (Jahnukainen et al., 1995).

king databasee Location Timestamp364 Intermediate Storage 1 10.11.2003421 Intermediate Storage 2 9.11.2003536 Intermediate Storage 1 9.11.2003423 Site Inventory 3.11.2003416 Site Inventory 10.11.2003

ded with a tracking tool.

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Task_01Task_02Task_06

Task_28Task_16

Task_54Task_17Task_21

Task_78Task_65Task_25

Task_08 Task_29Task_69 Task_07

All materialsavailable at site

Presentday

Day 2 Day 3 Day 4 Day 8 Day 9 Day 1 0 Day 1 1Day 5 Day 6 Day 7

Materials in interimstorage

Detected delay ofsome material(s) Material status

not defined

Task_13

Task_14 Task_24 Task_66Task_56

Task_27

Fig. 4. Illustration of the results of materials constraint analysis.

T. Ala-Risku, M. Karkkainen / Int. J. Production Economics ] (]]]]) ]]]–]]] 7

4.2. Material delivery triggering

An additional challenge for construction projectmanagement with the material delivery process isto guarantee material availability for the projecttasks without the build-up of unnecessary inven-tory. This requires effective communication andscheduling with the suppliers. Hence, we suggestthe use of the near-term schedule from the LastPlanner approach as a means of communicationbetween the project site and material suppliers.With Last Planner, project tasks are allocated

on the near-term schedule and the materialconstraints of each task are removed by ensuringthat the availability of necessary materials beforethe tasks are allowed to move to the workablebacklog (Ballard, 2000). Since the upcoming tasksare positioned on the near-term schedule, they canalso be used to communicate upcoming deliveryneeds to the suppliers. This is the most accuratedemand information available, as the near-termschedule is continuously updated to represent themost likely timing for the project tasks; andtherefore depicts the progress of the project. Ifthe suppliers are given visibility to upcomingmaterial needs, they are able to proactively informthe project of potential delivery problems. Thetask schedule can then be adjusted, taking intoaccount the emerged material constraint.Moreover, as changes in the task sequence are

made, the supplier is informed of delayed (oradvanced) material needs. Thus, the near-termproject schedule can be used for enabling thesuppliers to better cope with the changes in therequired delivery dates of the project material.The efficiency of operations for the planner can

be increased by removing the need for frequentmaterial orders. If the upcoming material require-

ments are conveyed directly to the suppliers (e.g.via www), the suppliers can move to pro-activedeliveries of the goods needed for the project tasks(analogous to Vendor Managed Inventory). Thesuppliers can be given the responsibility to deliverthe goods in time to the project site for each task.For the pro-active delivery, we have added an

extra parameter to the task schedule—the projectbuffer time. The project buffer time is used toensure that the materials arrive early enough forthe tasks that are moving into the workablebacklog. Hence, suppliers are given a materialneeds view, where the needs are advanced by thenumber of buffer days (illustrated in Fig. 5).For example, in Fig. 5, the project planner has

determined that the materials should be availablefor the project tasks that are scheduled for the nextthree days. A supplier with a delivery time of twodays would then have to dispatch the materials fora task five days before the task is commenced. Thematerial requirement of upcoming tasks would beshown as a forecast to ensure that suppliers areprepared to deliver according to the schedule.

4.3. Overview of the proposed material delivery

solution

The entire operating model is summarised inFig. 6. Incoming shipments are tracked to createinventory information for the various storagelocations of the project site. This information,along with information on other relevant con-straints for the project tasks, is used in updatingthe project near-term schedule, which representsthe anticipated sequence of the project tasks. Thetask schedule is then converted to material needsand communicated to the respective suppliers. Thesuppliers either commit to the requested deliveries

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Presentday

Day 2 Day 3 Day 4 Day 8Day 5 Day 6 Day 7

2 x ITEM_A56kg ITEM_C1 x ITEM_XYZ

3 x ITEM_B

1 x ITEM_FZC5 x ITEM_D

5 x ITEM_D1 x ITEM_FZC1 x ITEM_XYZ

3 x ITEM_K

12 x ITEM_L1 x ITEM_FZC1 x ITEM_KYL

9 x ITEM_M

1 x ITEM_FZC5 x ITEM_D

1 x ITEM_FZC5 x ITEM_D12 x ITEM_L

1 x ITEM_FZC1 x ITEM_KYL9 x ITEM_M

To be dispatchedon the present day

Expected call-offs

Project determined buffer time (3 days)

Task_01Task_02Task_06

Task_28Task_16

Task_54Task_17Task_21

Task_78Task_65Task_25

Task_08 Task_29Task_69 Task_07

Presentday

Day 2 Day 3 Day 4 Day 8 Day 9 Day 1 0 Day 1 1Day 5 Day 6 Day 7

Task_13

Task_14 Task_24 Task_66Task_56

Task_27

Fig. 5. Pro-active deliveries for project materials.

T. Ala-Risku, M. Karkkainen / Int. J. Production Economics ] (]]]]) ]]]–]]]8

or notify the project planner of potential delays.Finally, the suppliers deliver the ordered materialsthat are then recorded with the tracking system asbeing available materials in the site inventory.The experiences of the pilot installations of the

tracking-based inventory transparency tool indi-cate that it is a suitable approach for temporarysupply chain structures and for small companies asit is quick-to-implement and does not requiresignificant investment or IT expertise (Karkkainenand Ala-Risku, 2003). Furthermore, if www-pagesare used to communicate the project constructionschedule to suppliers, no additional project-speci-fic investments are required from any participantin a project. We therefore claim that the proposedmaterial delivery solution can be implemented invarious types of construction supply chains.

5. Conclusions and further research

A solution comprising two features was pro-posed for addressing the initial research problemof: How to develop an effective material deliverymodel for construction projects with near-termtask level scheduling?The solution consists of a tracking-based

approach for building inventory transparency forshort-term supply chains, and a pro-active materi-al delivery model for the materials for specificproject tasks. Both of these elements are central

when using the Last Planner approach in produc-tion control.The presented tracking-based method for sol-

ving the difficulties of site and intermediateinventory management and transparency can beconsidered a useful addition to the current body ofliterature. Its practical relevance is emphasised inproject-oriented industries, as it is challenging andoften infeasible to establish traditional inventorymanagement systems to temporary storage loca-tions used during projects.We consider the pro-active delivery model for

construction task materials to be a novel notion.As material delivery control has been a neglectedarea in project management research (Bertelsenand Nielsen, 1997; Olsson, 2000), we argue thatour model is an important step in promoting theimportance of this research focus.There has also been software development based

on the Last Planner approach, thereby making iteasier to apply the production control system (e.g.Choo et al., 1999, Choo and Tommelein, 2001).We believe our suggestions on how to integratematerials suppliers to the near-term schedulingprocess would further improve the utility of suchsoftware for project managers.The case studies on implementation of the Last

Planner identified that, despite its later appraisal,the new planning and control paradigm confrontsremarkable organisational resistance during theinitial implementation stage (e.g. Alarcon et al.,

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InterimStorage*

Project construction scheduleProject construction schedule

Material flow trackingon project task level

PROJECT

SITE

InterimStorage*

Interimstorages

SUPPLIER ASUPPLIER A

Project schedule updated based onmaterial availability and other constraints

Supplier-specific material requirementsschedule communicated to the suppliers

SUPPLIER BSUPPLIER B

Suppliers deliveraccording to the schedule

Deliveries are tracked to creatematerial availability information

Fig. 6. An illustration of the proposed material delivery system.

T. Ala-Risku, M. Karkkainen / Int. J. Production Economics ] (]]]]) ]]]–]]] 9

2002; Fiallo and Revelo, 2002). During the expertpanel discussions on our material delivery trigger-ing approach, we also noted resistance to changerelated to the role of material suppliers and theproject execution. The project management teamswere unwilling to formally articulate that distur-bances in material deliveries were a legitimatereason for re-scheduling project tasks. How-ever, not acknowledging the possibility for materi-al problems in task scheduling may lead toeconomic penalties. The installation subcontrac-tors can make heavy claims for the idle time oftheir installation workers due to lack of mate-rials (Halmepuro and Nysten, 2003). As a result,the interaction between project managementand suppliers needs to be strengthened. Thisis what our material delivery system is designedto do.We suggest two interesting areas for further

research. A case study with a company utilisingthe delivery scheduling procedure for timingmaterial replenishments is needed to examineand develop the practical applicability of theproposed solution. The study should aim todetermine the most critical points of the supplychain where transparency is required (ourexperiences thus far have all pressed the impor-tance of site inventories). Also, the economiceffects of the near-term scheduling model andthe established demand visibility on the mate-rial delivery process need to be comprehensivelystudied.

An additional area for future research is toidentify similarities and differences of materialflow challenges in construction projects of variousindustries to provide further insights on thegeneral relevance of the solution. For example, ifindividual tasks are less interdependent, does itaffect the flexibility requirements for materialsuppliers? This could be studied by comparingprojects establishing communication or powernetworks (e.g. digital television network or anelectric network) with civil engineering projects.

Acknowledgements

This research has been primarily supported byTEKES, the National Technology Agency ofFinland. We also thank the companies who havecontributed to the research results by financing theresearch and by providing empirical validation forour proposed material delivery solution.

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