Critical factors influencing inventory and procurement system of infrastructure projects
Abstract
The performance of any construction project is highly influenced by the efficient planning of materials among construction supply chain players. The improper planning for the construction project has been discussed recently in the literature, with a special focus on the logistic and material aspects. Completing a construction project within time and cost constraints is highly affected by the inventory management system. Such evidence proves the big impact of the inventory management system on construction performance. Derived from these arguments, the critical impact of the inventory and procurement system used at the construction site is definite. This research aims to examine the main factors that need to be considered when developing an inventory and procurement management system and classify the most influential and impactful factors. This research adopted a two-steps methodology, which started with an interview with construction experts then followed by a questionnaire survey targeting project managers and engineers from MRT Line 2 Tunneling infrastructure project in Malaysia. Exploratory Factor Analysis (EFA) was used for data analysis as well as the scatter plot of the mean and standard deviation analysis. The most critical factors affecting the inventory and procurement handling are related to the operation and management aspects. The top five impactful factors are communication between labor and management, information sharing, software usage on material tracking, purchasing plan, and construction progress. The research outcomes can be used to develop further mitigation plans in the early stages of infrastructure projects.
Keyword : inventory management, procurement management, logistics, planning, project operation and management, supply chain material
How to Cite
Al-Aidrous, A.-H. M. H., Hern, N. J., Rahmawati, Y., Jahja, M., Yusof, K. W., Zawawi, N. A. W. A., Utomo, C., & Raflis. (2022). Critical factors influencing inventory and procurement system of infrastructure projects. Journal of Civil Engineering and Management, 28(8), 634–645. https://doi.org/10.3846/jcem.2022.16681
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Jiang, L., Li, Z., Li, L., & Gao, Y. (2018). Constraints on the promotion of prefabricated construction in China. Sustainability, 10(7), 2516. https://doi.org/10.3390/su10072516
Josephson, P.-E., Larsson, B., & Li, H. (2002). Illustrative benchmarking rework and rework costs in Swedish construction industry. Journal of Management in Engineering, 18(2), 76–83. https://doi.org/10.1061/(ASCE)0742-597X(2002)18:2(76)
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Liu, B., Xue, B., Huo, T., Shen, G., & Fu, M. (2019). Project external environmental factors affecting project delivery systems selection. Journal of Civil Engineering and Management, 25(3), 276–286. https://doi.org/https://doi.org/10.3846/jcem.2019.7460
Lu, H., Wang, H., Xie, Y., & Wang, X. (2018). Study on construction material allocation policies: A simulation optimization method. Automation in Construction, 90, 201–212. https://doi.org/10.1016/j.autcon.2018.02.012
Mohammadi, A., Igwe, C., Amador-Jimenez, L., & Nasiri, F. (2020). Applying lean construction principles in road maintenance planning and scheduling. International Journal of Construction Management. https://doi.org/10.1080/15623599.2020.1788758
Olanrewaju, A. L., & Idrus, A. (2019). What is determining affordable housing shortages in the Greater Kuala Lumpur, Malaysia?. Property Management, 38(1), 52–81. https://doi.org/10.1108/PM-05-2019-0025
Osypchuk, O., & Iwan, S. (2019). Construction site deliveries in urban areas, based on the example of Szczecin. Transportation Research Procedia, 39, 389–397. https://doi.org/10.1016/j.trpro.2019.06.041
Pan, N. H., Lee, M. L., & Chen, S. Q. (2011). Construction material supply chain process analysis and optimization. Journal of Civil Engineering and Management, 17(3), 357–370. https://doi.org/10.3846/13923730.2011.594221
Polat, G., & Arditi, D. (2005). The JIT materials management system in developing countries. Construction Management and Economics, 23(7), 697–712. https://doi.org/10.1080/01446190500041388
Rahmawati, Y., Utomo, C., Muhamad Sukri, N. S., Yasinta, R. B., & Al-Aidrous, A.-H. M. H. (2020). Environmental enhancement through high-rise building refurbishment. Sustainability, 12(22), 9350. https://doi.org/10.3390/su12229350
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Sari, K. (2007). Exploring the benefits of vendor managed inventory. International Journal of Physical Distribution and Logistics Management, 37(7), 529–545. https://doi.org/10.1108/09600030710776464
Shen, Q., & Liu, G. (2003). Critical success factors for value management studies in construction. Journal of Construction Engineering and Management, 129(5), 485–491. https://doi.org/10.1061/(ASCE)0733-9364(2003)129:5(485)
Subramani, T., Nair, V. B., David, A., Ghouse, B. M., & Kumar, N. S. (2017). A study of inventory management system in construction industry. International Journal of Application or Innovation in Engineering & Management (IJAIEM), 6(5), 304–311.
Tanskanen, K., Holmström, J., Elfving, J., & Talvitie, U. (2009). Vendor-managed-inventory (VMI) in construction. International Journal of Productivity and Performance Management, 58(1), 29–40. https://doi.org/10.1108/17410400910921065
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Vrijhoef, R., & Koskela, L. (2000). The four roles of supply chain management in construction. European Journal of Purchasing and Supply Management, 6(3–4), 169–178. https://doi.org/10.1016/S0969-7012(00)00013-7
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Wu, C.-L., Fang, D.-P., Liao, P.-C., Xue, J.-W., Li, Y., & Wang, T. (2015). Perception of corporate social responsibility: The case of Chinese international contractors. Journal of Cleaner Production, 107, 185–194. https://doi.org/10.1016/j.jclepro.2015.04.143
Wu, P., Jin, R., Xu, Y., Lin, F., Dong, Y., & Pan, Z. (2021). The analysis of barriers to BIM implementation for industrialized building construction: A China study. Journal of Civil Engineering and Management, 27(1), 1–13. https://doi.org/10.3846/jcem.2021.14105
Xian, B. W. X., Rahmawati, Y., Al-Aidrous, A.-H. M. H., Utomo, C., Wan Abdullah Zawawi, N. A., & Raflis. (2021). Value-based decision to redevelop transportation facilities: A case study of an abandoned airport. Sustainability, 13(9), 4959. https://doi.org/10.3390/su13094959
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Ajayi, S. O., Oyedele, L. O., Bilal, M., Akinade, O. O., Alaka, H. A., & Owolabi, H. A. (2017). Critical management practices influencing on-site waste minimization in construction projects. Waste Management, 59, 330–339. https://doi.org/10.1016/j.wasman.2016.10.040
Al-Aidrous, A.-H. M. H., Rahmawati, Y., Yusof, K. W., Baarimah, A. O., & Alawag, A. M. (2021). Review of industrialized buildings experience in Malaysia: An example of a developing country. IOP Conference Series: Earth and Environmental Science, 682(1), 012003. https://doi.org/10.1088/1755-1315/682/1/012003
Al-Ashmori, Y. Y., Othman, I., Rahmawati, Y., Amran, Y. H. M., Sabah, S. H. A., Rafindadi, A. D., & Mikić, M. (2020). BIM benefits and its influence on the BIM implementation in Malaysia. Ain Shams Engineering Journal, 11(4), 1013–1019. https://doi.org/10.1016/j.asej.2020.02.002
Al-Atesh, E. A., Rahmawati, Y., Zawawi, N. A. W. A., & Utomo, C. (2021). A decision-making model for supporting selection of green building materials. International Journal of Construction Management. https://doi.org/10.1080/15623599.2021.1944548
Aziz, R. F., & Hafez, S. M. (2013). Applying lean thinking in construction and performance improvement. Alexandria Engineering Journal, 52(4), 679–695. https://doi.org/10.1016/j.aej.2013.04.008
Chen, Q., Hall, D. M., Adey, B. T., & Haas, C. T. (2020). Identifying enablers for coordination across construction supply chain processes: a systematic literature review. Engineering, Construction and Architectural Management. https://doi.org/10.1108/ECAM-05-2020-0299
Chen, Q., García de Soto, B., & Adey, B. T. (2021). Supplier-contractor coordination approach to managing demand fluctuations of ready-mix concrete. Automation in Construction, 121, 103423. https://doi.org/10.1016/j.autcon.2020.103423
Chong, H. Y., Lopez, R., Wang, J., Wang, X., & Zhao, Z. (2016). Comparative analysis on the adoption and use of BIM in road infrastructure projects. Journal of Management in Engineering, 32(6), 05016021. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000460
Centralized Information Management System. (2021). Registered contractor. https://cims.cidb.gov.my/smis/regcontractor/reglocalsearchcontractor.vbhtml
Díaz-Madroñero, M., Peidro, D., & Mula, J. (2015). A review of tactical optimization models for integrated production and transport routing planning decisions. Computers & Industrial Engineering, 88, 518–535. https://doi.org/10.1016/j.cie.2015.06.010
Gharouni Jafari, K., & Noorzai, E. (2021). Selecting the most appropriate project manager to improve the performance of the occupational groups in road construction projects in warm regions. Journal of Construction Engineering and Management, 147(10), 04021131. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002151
Hadidi, L., Assaf, S., & Alkhiami, A. (2017). A systematic approach for ERP implementation in the construction industry. Journal of Civil Engineering and Management, 23(5), 594–603. https://doi.org/10.3846/13923730.2016.1215348
Hsu, P. Y., Angeloudis, P., & Aurisicchio, M. (2018). Optimal logistics planning for modular construction using two-stage stochastic programming. Automation in Construction, 94, 47–61. https://doi.org/10.1016/j.autcon.2018.05.029
Hsu, P. Y., Aurisicchio, M., Angeloudis, P., & Whyte, J. (2020). Understanding and visualizing schedule deviations in construction projects using fault tree analysis. Engineering, Construction and Architectural Management, 27(9), 2501–2522. https://doi.org/10.1108/ECAM-01-2020-0058
Hwang, B.-G., Li, Y.-S., Shan, M., & Chua, J.-E. (2020). Prioritizing critical management strategies to improving construction productivity: Empirical Research in Singapore. Sustainability, 12(22), 9349. https://doi.org/10.3390/su12229349
Ismail, F., Yusuwan, N. M., & Baharuddin, H. E. A. (2012). Management factors for successful IBS projects implementation. Procedia - Social and Behavioral Sciences, 68, 99–107. https://doi.org/10.1016/j.sbspro.2012.12.210
Jaśkowski, P., Sobotka, A., & Czarnigowska, A. (2018). Decision model for planning material supply channels in construction. Automation in Construction, 90, 235–242. https://doi.org/10.1016/j.autcon.2018.02.026
Jiang, L., Li, Z., Li, L., & Gao, Y. (2018). Constraints on the promotion of prefabricated construction in China. Sustainability, 10(7), 2516. https://doi.org/10.3390/su10072516
Josephson, P.-E., Larsson, B., & Li, H. (2002). Illustrative benchmarking rework and rework costs in Swedish construction industry. Journal of Management in Engineering, 18(2), 76–83. https://doi.org/10.1061/(ASCE)0742-597X(2002)18:2(76)
Kaiser, H. F. (1970). A second generation little jiffy. Psychometrika, 35(4), 401–415. https://doi.org/10.1007/BF02291817
Karji, A., Namian, M., & Tafazzoli, M. (2020). Identifying the key barriers to promote sustainable construction in the United States: A principal component analysis. Sustainability, 12(12), 5088. https://doi.org/10.3390/su12125088
Lin, L., Chang, C., & Lin, Y. (2011). Structure development and performance evaluation of construction knowledge management system. Journal of Civil Engineering and Management, 17(2), 184–196. https://doi.org/10.3846/13923730.2011.576833
Liu, B., Xue, B., Huo, T., Shen, G., & Fu, M. (2019). Project external environmental factors affecting project delivery systems selection. Journal of Civil Engineering and Management, 25(3), 276–286. https://doi.org/https://doi.org/10.3846/jcem.2019.7460
Lu, H., Wang, H., Xie, Y., & Wang, X. (2018). Study on construction material allocation policies: A simulation optimization method. Automation in Construction, 90, 201–212. https://doi.org/10.1016/j.autcon.2018.02.012
Mohammadi, A., Igwe, C., Amador-Jimenez, L., & Nasiri, F. (2020). Applying lean construction principles in road maintenance planning and scheduling. International Journal of Construction Management. https://doi.org/10.1080/15623599.2020.1788758
Olanrewaju, A. L., & Idrus, A. (2019). What is determining affordable housing shortages in the Greater Kuala Lumpur, Malaysia?. Property Management, 38(1), 52–81. https://doi.org/10.1108/PM-05-2019-0025
Osypchuk, O., & Iwan, S. (2019). Construction site deliveries in urban areas, based on the example of Szczecin. Transportation Research Procedia, 39, 389–397. https://doi.org/10.1016/j.trpro.2019.06.041
Pan, N. H., Lee, M. L., & Chen, S. Q. (2011). Construction material supply chain process analysis and optimization. Journal of Civil Engineering and Management, 17(3), 357–370. https://doi.org/10.3846/13923730.2011.594221
Polat, G., & Arditi, D. (2005). The JIT materials management system in developing countries. Construction Management and Economics, 23(7), 697–712. https://doi.org/10.1080/01446190500041388
Rahmawati, Y., Utomo, C., Muhamad Sukri, N. S., Yasinta, R. B., & Al-Aidrous, A.-H. M. H. (2020). Environmental enhancement through high-rise building refurbishment. Sustainability, 12(22), 9350. https://doi.org/10.3390/su12229350
Rzepecki, L. (2019). Optimization of inventory costs management in the construction enterprise. IOP Conference Series: Materials Science and Engineering, 603(3), 032046. https://doi.org/10.1088/1757-899X/603/3/032046
Sari, K. (2007). Exploring the benefits of vendor managed inventory. International Journal of Physical Distribution and Logistics Management, 37(7), 529–545. https://doi.org/10.1108/09600030710776464
Shen, Q., & Liu, G. (2003). Critical success factors for value management studies in construction. Journal of Construction Engineering and Management, 129(5), 485–491. https://doi.org/10.1061/(ASCE)0733-9364(2003)129:5(485)
Subramani, T., Nair, V. B., David, A., Ghouse, B. M., & Kumar, N. S. (2017). A study of inventory management system in construction industry. International Journal of Application or Innovation in Engineering & Management (IJAIEM), 6(5), 304–311.
Tanskanen, K., Holmström, J., Elfving, J., & Talvitie, U. (2009). Vendor-managed-inventory (VMI) in construction. International Journal of Productivity and Performance Management, 58(1), 29–40. https://doi.org/10.1108/17410400910921065
Vidalakis, C., Tookey, J. E., & Sommerville, J. (2011a). The logistics of construction supply chains: the builders’ merchant perspective. Engineering, Construction and Architectural Management, 18(1), 66–81. https://doi.org/10.1108/09699981111098694
Vidalakis, C., Tookey, J. E., & Sommerville, J. (2011b). Logistics simulation modelling across construction supply chains. Construction Innovation, 11(2), 212–228. https://doi.org/10.1108/14714171111124176
Vrijhoef, R., & Koskela, L. (2000). The four roles of supply chain management in construction. European Journal of Purchasing and Supply Management, 6(3–4), 169–178. https://doi.org/10.1016/S0969-7012(00)00013-7
Vyas, G. S., & Jha, K. N. (2016). Identification of green building attributes for the development of an assessment tool: A case study in India. Civil Engineering and Environmental Systems, 33(4), 313–334. https://doi.org/10.1080/10286608.2016.1247832
Wu, C.-L., Fang, D.-P., Liao, P.-C., Xue, J.-W., Li, Y., & Wang, T. (2015). Perception of corporate social responsibility: The case of Chinese international contractors. Journal of Cleaner Production, 107, 185–194. https://doi.org/10.1016/j.jclepro.2015.04.143
Wu, P., Jin, R., Xu, Y., Lin, F., Dong, Y., & Pan, Z. (2021). The analysis of barriers to BIM implementation for industrialized building construction: A China study. Journal of Civil Engineering and Management, 27(1), 1–13. https://doi.org/10.3846/jcem.2021.14105
Xian, B. W. X., Rahmawati, Y., Al-Aidrous, A.-H. M. H., Utomo, C., Wan Abdullah Zawawi, N. A., & Raflis. (2021). Value-based decision to redevelop transportation facilities: A case study of an abandoned airport. Sustainability, 13(9), 4959. https://doi.org/10.3390/su13094959
Yong, A. G., & Pearce, S. (2013). A beginner’s guide to factor analysis: Focusing on exploratory factor analysis. Tutorials in Quantitative Methods for Psychology, 9(2), 79–94. https://doi.org/10.20982/tqmp.09.2.p079
Zhu, W., Zeng, R., Li, X., Zhu, Y., & Zhang, Z. (2017). Managerial drivers of Chinese labour loyalty in international construction projects. Journal of Civil Engineering and Management, 23(8), 1109–1122. https://doi.org/10.3846/13923730.2017.1381644
Zou, P. X. W., Lun, P., Cipolla, D., & Mohamed, S. (2017). Cloud-based safety information and communication system in infrastructure construction. Safety Science, 98, 50–69. https://doi.org/10.1016/j.ssci.2017.05.006