Improved Performance in the Construction Supply Chain
Submitting Institution
University of the West of England, BristolUnit of Assessment
Architecture, Built Environment and PlanningSummary Impact Type
TechnologicalResearch Subject Area(s)
Built Environment and Design: Building
Commerce, Management, Tourism and Services: Business and Management
Summary of the impact
The Construction and Property Research Centre (CPRC) has
had an impact on supply chain collaboration, process improvement, and
technology integration in the construction industry, primarily in the
South West of England, but also nationally and internationally. Its impact
has been enhanced by its leading role in four major regional knowledge
exchange initiatives (Construction Knowledge Exchange, Future Foundations,
Constructing Excellence and the Environmental iNet). Through these
initiatives, CPRC's research has contributed to the
change in culture of the construction industry from `adversarial' to more
collaborative. This has increased capacity and improved performance of
public and private construction clients, construction companies,
specialist subcontractors, SMEs and individual professionals. By
delivering training and on-line materials, and supporting the sector
through numerous business consultancies and `best practice clubs' it has
directly influenced over 700 companies and 1700 professionals leading to
streamlined construction processes, costs savings, reduced errors, and
increases in efficiency, productivity and profitability.
Underpinning research
CPRC's underpinning research was developed in line with the
key improvement areas identified in the `Egan Report' (Egan, J [1988] Rethinking
Construction: Report of the Construction Industry Taskforce, London,
HMSO). The Centre undertook research to understand and promote best
practice approaches in dealing with the endemic challenges facing the
industry, through supply chain collaboration, process improvement and
technology integration. Its research has been carried out in a continually
evolving (and mutually reinforcing) series of fundamental research
projects and action research partnerships (with industry stakeholders). CPRC
has worked with construction practitioners to identify problems, develop
theory, and produce and test practical solutions and tools. The research
was started by Martyn Jones, then led by Prof Ming Sun and
is now headed by Prof Paul Olomolaiye. Three other CPRC
academics were centrally involved in this research from the early 2000s
(see dates below), along with a number of external collaborators (as named
on publications).
A key focus of CPRC's research since 1998 was fragmentation
and adversarial attitudes within the industry (i.e. problems in supply
chain relationships and operations), identified in the `Egan
Report' as the source of the majority of the problems facing the
sector. Jones conducted some of the first studies analysing
partnering, and assessing progress towards the adoption of a collaborative
culture in the construction industry (R1,2). Based on surveys of
construction practitioners, he found they have some knowledge of supply
chain management, but require a better conceptual understanding and more
systematic approaches to change an essentially adversarial culture to a
more collaborative one. His research on the delivery of social housing
(funded by The Housing Corporation) resulted in a seven step model for
developing new supply chain relationships, and guidance on how best to
manage their sustainability (R2). In numerous publications, Jones
focused on encouraging clients and main contractors to rethink their
procurement strategies and adopt a best practice partnering approach. Jones'
research has been widely used to advance knowledge and/or good practice in
partnering (e.g. R1 has 161 citations, in academic and industry
publications from the UK, Hong Kong, Sweden, Australia and elsewhere).
Meng's and Vidalakis' research (supported by a UWE PhD
bursary and HEFCE) also studied problems in construction sector supply
chains. Vidalakis focused on the applicability of logistics
management in construction, and provided new understandings by studying
the logistical functions of builders' merchants (R3). Meng's
research on the development of supply chain relationships (with Sun
and others) resulted in assessment procedures to help construction
organisations to evaluate their existing associations and to identify key
areas for further relationship improvement (R4). Both Meng and Vidalakis
concluded with arguments for the adoption of more collaborative
approaches. In 2009, Olomolaiye joined CPRC, with a
track record of research and industry engagement in construction best
practice, undertaking research on the role of fostering deeper engagement
between industry and higher education in the construction sector, and on
sustainable assessment criteria for building materials (R5).
CPRC also focused on Egan's other prime concern:
process improvement and technology integration in construction.
Sun's EPSRC-funded research on managing change and dependency in
construction projects provided new knowledge on task dependencies, and the
strategies practitioners deploy to deal with uncertainty and change. A
follow on study (a PhD undertaken by Olawale, supervised by Sun)
included a survey of 250 companies that indentified key factors that
inhibit time and cost control during construction projects, including
design changes, risks/uncertainties and non performance of sub-contractors
(R6). Olawale and Sun identified 90 mitigating measures
that can be used as a checklist to help project managers improve the
effectiveness of their projects, which will help to reduce delays, costs,
quality defects, client dissatisfaction and damage to the reputation of
the industry. Taking this knowledge further, Sun (again, funded by
EPSRC) developed a change-management toolkit which helps teams to
anticipate changes that may affect cost, time and quality, and to evaluate
their impacts on a project before implementation (R7). The toolkit can
minimize the negative impacts of necessary changes, and avoid unnecessary
ones. Based on this knowledge, Sun and others also worked on two
Knowledge Transfer Partnerships (KTPs). One, in collaboration with Waycon
Precast Ltd (a company that produces pre-case concrete lift shafts),
looked at process reengineering in the production of its precast concrete
elements in order to reduce waste and achieve efficiencies in the
production phase. The second, with Management Process Systems (MPS) Ltd (a
Cambridge- based company that delivers best practice, information and
knowledge management services to the construction industry through IT
services via the internet), incorporated CPRC's research to
develop an innovative cost/value measurement methodology for its online
contract change management system, to improve contract management and
sustainable design.
Key staff: Martyn Jones, Principal lecturer, 01-01-77 - 31/07/12;
Dr Christos Vidalakis, RA/RF, 12/11/07 - 12/08/12; Dr
Xiannai Meng, PhD student, 1/10/05 - 19/06/08;, Prof Ming Sun,
01/09/02 - 31/03/12; Prof Paul Olomolaiye, 01/11/09 — date; Dr
Yakubu Olawale, PhD student 01/10/05-13/07/10.
References to the research
R1. Saad M, Jones M, James P (2002) A review of the progress towards the
adoption of supply chain management (SCM) relationships in construction. European
Journal of Purchasing and Supply Management, 8(3), pp. 173-183. http://dx.doi.org/10.1016/S0969-7012(02)00007-2
R3. Vidalakis C, Tookey JE and Sommerville, J (2011) The logistics of
construction supply chains: the builders' merchant perspective. Engineering,
Construction and Architectural Management, 10(1), pp. 66-80. http://dx.doi.org/10.1108/09699981111098694
R5. Akadiri P and Olomolaiye P (2012) Development of sustainable
assessment criteria for building materials selection. Engineering,
Construction and Architectural Management, 19(6) pp. 666-687. http://dx.doi.org/10.1108/09699981211277568
R6. Olawale Y and Sun M (2010) Cost and time control of construction
projects: inhibiting factors and mitigating measures in practice. Construction
Management and Economics, 28(5), pp. 509-526. http://dx.doi.org/10.1080/01446191003674519
Key grants
• Managing Change and Dependency in Construction Projects, EPSRC
(System Integration Initiative), £205k, 2001-04, GR/R31874/01, Sun
PI.
• Concept to Completion Design Tools for Sustainable Buildings,
Technology Strategy Board (TSB), £259k, 2010-12, Sun PI.
• IT in Support of Business Process Reengineering, TSB and Waycon
Precast Ltd, £117k, 2006-08, Sun PI.
• Contract Change Management Software, TSB and MPS Ltd, £101k,
2006-08, Sun PI.
Details of the impact
CPRC has had an impact on supply chain collaboration,
process improvement, and technology integration in the construction
industry, primarily in the South West of England, but also nationally and
internationally. It has achieved significant changes in the construction
industry's culture by disseminating its research through numerous means:
at a `macro' scale, through major knowledge exchange activities and at a
`micro' level through working with individual businesses and engaging in
KTPs. It is worth briefly describing the formal KE vehicles for the
Centre's research, to demonstrate the scale and intensity of activity.
On the strength of CPRC's research track record and
reputation it was, in 2004, invited to act as the regional hub for the two
initiatives designed to bring about the required changes in the
construction industry: Construction Knowledge Exchange (CKE) and Constructing
Excellence South West (CESW). CKE was funded by the Higher
Education Funding Council for England (£383k, to 2009); CESW was
funded by the South West Regional Development Agency and Department for
Trade and Industry (£1.1M, to 2012). In 2009, CPRC also
began to champion Future Foundations, a partnership of regional
and sub-regional stakeholders to promote sustainable construction. In
2010, UWE secured the Environmental iNet (note: Olomolaiye
is CPRC lead, and was instrumental in the development of
West Midlands Centre for Constructing Excellence) funded by the South West
of England Regional Development Agency and the European Regional
Development Fund (£1.07M to 2013), with an ERDF-funded extension to 2015
(£350k). The iNet is an initiative to support environmental goods
and services businesses in the Region, and has already assisted over 100
SMEs in the construction industry.
The remit of these KE initiatives is wider than that of CPRC's
research (including, for example health and safety issues). However, the
key foci are improving collaboration and streamlining processes, which has
meant that CPRC has influenced the overall message and
culture of these programmes and disseminated its research to considerable
effect.
At international and national levels CPRC, through
its various initiatives, has channelled the combined voice of the sector
in the region, acting as the `melting pot' for best practice (S1, p.3,
1.7) and industry champion for `Rethinking Construction'. It has had an
impact through its participation in the National Board of Constructing
Excellence, affecting policy formulation and implementation through its
advice to the international Sustainable Construction and Innovation
through Procurement (SCI)-Network. In addition, Jones' work on
collaboration partnerships was the basis of recommendations to the
`Construction Reform Movement' and led to the development of `Construction
Best Practice Clubs' (CBPCs — comprised practitioners) across the UK.
These clubs became one of the main KE vehicles for `Constructing
Excellence'. Meng's and Vidalakis' findings were also
built into the Constructing Excellence National Demonstration Programme.
At the regional scale, Meng, Vidalakis, Sun and Olomolaiye's
research findings were fed into local networks, training initiatives,
business assists, films, online information portals and other means of
communication appropriate for industry (e.g. S2). Through CESW and CKE CPRC
delivered workshops and provided training to 1700 individuals and
supported 778 businesses. It carried out specific assistance to 400
construction related businesses, in the form of consultancies and in-depth
organisational assists, which are largely productivity and
effectiveness reviews. Approximately 20% of these companies have national
and international projects, so have a reach wider than the South West. The
Centre has also led a network of seven CBPCs, helping over 30 local
companies to adopt best practice and enabling the development of a `same
team' culture amongst stakeholders.
An independent review of the CPRC-hosted CESW initiative,
based on a survey of participants (large firms, sub contractors,
professional service firms and public sector organisations), (S1) found
that it had led to:
-
increased levels of confidence in the Region's prospects for growth
by supporting the development of a stronger and more professional
industry through strengthening supply chains, improving its image and
developing local networks (S1, p.6);
-
a positive impact on the behaviour and processes employed within
construction firms: 75% of respondents reported better working
practices and processes (S1, p.6);
-
improved awareness and understanding, and practical experience of
supply chain integration: 62% of respondents (S1, p.43);
-
improved awareness and understanding, and practical experience of
collaboration with other firms/organisations: 71% of respondents
(S1, p.43);
-
modernised working practices and processes: 67% of respondents
(S1, p.49); and
-
increased profitability: 51% of respondents (S1, p.49).
Since this review, these impacts have continued, with partners reporting
that the CRPC/CESW collaboration has: `achieved remarkable
levels of supply chain integration and collaboration'; and `up-skilled our
supply chain and provided essential support to SMEs' (S3). Bristol City
Council reports that the collaboration resulted in its award of `Client of
the Year' at the South West Built Environment Awards, 2011 (S3). CESW's
Director testifies that CPRC's input was `substantial and
critical in supporting us to achieve better supply chain integration (and)
improved project and management performance.... Allowing the industry to
access best practice and innovative approaches to construction
procurement' (S4). The iNet has subsequently provided a similar
platform for companies in the region: 100 construction SMEs have
benefitted from 1700 hours of support in workshops or bespoke engagement.
Partners have reported the development of `a collaborative culture with
businesses and local authorities', and have benefited from `access to, and
use of, quality research undertaken by the University' (S5).
At the micro scale, CPRC has improved construction
processes and helped firms integrate IT solutions. The Centre's KTP
with Waycon Precast Ltd. on the reduction of waste in the production of
precast concrete elements led to: savings on outside contractors [text
removed for publication]; increased efficiency [text removed for
publication]; reduction in errors [text removed for publication]; and
capacity to expand in new business areas [text removed for publication]
(S6). Similarly, the KTP with MPS Ltd. produced a means of quantifying the
tangible and intangible benefits of the contract change management system.
The Director of MPS testified that the KTP provided `...MPS with a toolkit
and a methodology to demonstrate the business benefits of using
collaborative IT systems to support contract change management. Our
customers can now measure the return on their investment' (S7).
Overall, through the development of new knowledge, and sustained
engagement with the construction sector, CPRC has helped
develop a more collaborative industry culture with improved systems and
processes, ultimately leading to increased performance and profitability.
Sources to corroborate the impact
S1. Adroit Economics Ltd (2009) Evaluation of Constructing Excellence
South West, Adroit Economics, Cheshire, Link.
— Available through UWE.
S2. Best Practice films from CKE and Future Foundations http://www.buildsw.org.uk/clientsdvds
S3. Procurement Officer, Bristol City Council, Testimonial on the impact
of CPRC's role in CESW. — Available through UWE. [1
on REF Portal]
S4. Regional Director, Constructing Excellence South West, Testimonial on
the impact of CPRC's role in CESW. — Available through
UWE. [2]
S5. Team Manager, Economy and Enterprise, Bristol City Council,
Testimonial on the impact of the Environmental iNet, available from UWE.
— Available through UWE. [3]
S6. IT in Support of Business Re-engineering: Exemplars of Industry-HEI
engagement (Case Study), Construction Knowledge Exchange. — Available
through UWE.
S7. Management Process Systems Ltd: Quantifying the Business Benefits of
Contract Change Software (Report, 0870). — Available through UWE.