Benefits and challenges of automated materials technology in industrial construction projects

Abstract

The widespread adoption of automated materials locating and tracking technologies (AMLTTs) in the construction supply chain can positively impact productivity in industrial construction projects. Prior academic studies have identified the need, recommended the use and demonstrated the potential of AMLTTs using field trials and experiments. These studies have also identified the potential benefits and challenges of AMLTT implementation. Very few studies have empirically examined the on-site application of AMLTTs in projects and reported the actual benefits and challenges. This paper examines the commercial implementation of AMLTT in seven industrial projects to examine the benefits and challenges. Based on the empirical studies, four propositions are presented on the benefits and challenges of AMLTT use. First, improved operational efficiency due to AMLTT allows project/firm personnel to focus more on business-critical activities. Second, AMLTT use improves the transactional visibility of materials through information sharing in the supply-chain network. Third, AMLTT use requires a thorough data management plan. Finally, in order to achieve strategic benefits, AMLTT use requires addressing the organisational aspects of technology adoption. The enhanced understanding of the benefits and challenges of AMLTT implementation is the contribution to the industrial construction body of knowledge.

Defining Supply Chain Visibility for Industrial Construction Projects

“…Similar technology combinations have also been used to improve the visibility of prefabricated materials in the storage sites at offsite fabrication yards (Ergen and Akinci, 2008). The information that is exchanged in electronic format includes information about "shipments, packing lists, inspections, purchase orders, fabrication progress, material receipts, material storage and location, material withdrawal requests, material pick and issue lists" (Dharmapalan and O'Brien, 2018).…”

“…The SCV of materials in industrial construction projects is reported to be low (Dharmapalan and O'Brien, 2018). These projects involve multiple supply chain participants who participate in varying capacities during the project's different phases (Caldas and Gupta, 2017).…”

Assessment of visibility in industrial construction projects: a viewpoint from supply chain stakeholders

“…The visibility of materials in the supply chain of industrial construction projects is reported to be low (Dharmapalan and O'Brien, 2018;Young et al, 2011). Two principal characteristics limit the effective exchange of information among supply chain stakeholders and thus inhibit visibility.…”

“…The offsite supply chain locations studied include the manufacturing plant and offsite storage yards. Recently, Dharmapalan and O'Brien (2018) empirically investigated the commercial implementation of AMLTT in industrial projects. The application of AMLTT on the investigated projects was at onsite project laydown yard and both onsite and offsite laydown yards of fabricators.…”

“…In addition to the three groups, the panel suggested including vendor-supplied "ship-loose" items. "Ship-loose" components in construction are the "items that need to be shipped separately from vendor-supplied skids in the case of prefabricated items or engineered equipment" (Dharmapalan and O'Brien, 2018). The two survey questions on location and material type were kept independent of each other because all the material types do not traverse the nine supply chain locations.…”