Configuring Web Based Configuring Web Based SCM Systems for SCM Systems for Construction ProjectsConstruction Projects

Prof. Hans Bjornsson

Prof. Kincho Law

Jack Cheng

CIFECenter for Integrated Facility Engineering

AgendaAgenda Supply Chain ManagementSupply Chain Management

Construction Supply Chain Lean Construction Information Sharing

SC Collaborator – Web-based platform for SC Collaborator – Web-based platform for construction supply chainconstruction supply chain Web Services Interfaces and System Architecture

System Demonstration and DiscussionSystem Demonstration and Discussion GC-Subcontractor-Supplier Collaboration Module Functionalities

SummarySummary

Construction Supply ChainConstruction Supply Chain

ExpeditingReport

ExpeditingReport

ExpeditingReport

PM Purchasing SubcontractorAccountPayable

DeliveryTicket

DeliveryTicket

Invoice Invoice Invoice

D

BidPackage

BidPackage

Bid Bid

ScheduleSpec

CostDistribution

JobLedger

Estimating ControlGeneral

Accounting

Workitemcosts

Workitemcosts

Workitemcosts

Jobledger

Jobledger

Jobestimate

Jobestimate

Generalledger

A

Document

Comparison for control

Permanent file of doc.

Suppliers Carrier

MaterialPurchase

Order

MaterialPurchase

Order

SubcontractPurchase

Order

SubcontractPurchase

Order

MaterialPurchase

Order

MaterialPurchase

Order

B/L(Bill of Lading)

B/L(Bill of Lading)

B/L(Bill of Lading)

ExpeditingReport

ExpeditingReport

ExpeditingLog

D

PurchaseOrder

Invoice

ReceivingReport

RecevingLog

D

ShippingNotice

ShippingNotice

Modified from Min, J.U. (2004) Supply Chain Visualization through Web Services Integration, PhD Thesis, Stanford University, USA

Information Flow Procurement Process

Information and Material Flow Expediting Process

Information andFinancial Flow Transaction Process

Challenges of Construction SCChallenges of Construction SC

Construction is a multi-disciplinarymulti-disciplinary, multi-multi-participantparticipant industry

Highly fragmentedfragmented supply chain Large number of stakeholders Conflicting goals and objectives Different locations Short-term, project-basedproject-based relationship

Room for Improvement in ConstructionRoom for Improvement in Construction

Current Current ManufacturingManufacturing

Value Value AddedAdded

62%62%

SupportSupportActivityActivity

12%12%

WasteWaste26%26%

Current Current ConstructionConstruction

Value Value AddedAdded

10%10%

SupportSupportActivityActivity

33% 33%

WasteWaste57%57%

Source: FIATECH, 2004

Lean ConstructionLean Construction Based on concepts of lean manufacturing

GOAL: MaximizeMaximize the valuevalue delivered to the customer while MinimizingMinimizing wastewaste (not value-adding)

Basic Principles Identify valuesvalues in customer’s terms Eliminate inefficientinefficient practicespractices (waste) Make the work flowflow DecentralizeDecentralize decision making Increase communication Let the customers pullpull

Results: improved quality and profit margins

Information Sharing is not Easy…Information Sharing is not Easy…

CivilEngineer

ConstructionManager

StructuralEngineer

BuildingOwner

Architect

CostEstimator

MEPEngineer

HVACEngineer

We Need Information StandardsWe Need Information Standards

CivilEngineer

ConstructionManager

StructuralEngineer

BuildingOwner

Architect

CostEstimator

MEPEngineer

HVACEngineer

SharedProject Data

Model

Industry Foundation Classes (IFC)Industry Foundation Classes (IFC) Most commonly used data model in AEC

industry Developed by International Alliance for International Alliance for

Interoperability (IAI)Interoperability (IAI) Mission: To enable software interoperabilitysoftware interoperability in

AEC/FM industry In STEPSTEP format

IAI

Versions:IFC 1.0 [1997] IFC 1.5 IFC 1.5.1 IFC 2.0 IFC 2x IFC 2x2 IFC 2x3 [June 2007]IFC 2x3 [June 2007]

From 2D Model to BIMFrom 2D Model to BIM 2D Drafting2D Drafting

Individual paper-based 2D drawings

No consistency check No project info

3D Modeling3D Modeling Computer-based 2D/3D

models Consistency check – geometry No project info

Building Information Model Building Information Model (BIM)(BIM) Computer-based 3D models Consistency check – geometry Project info, e.g. cost,

schedule, lighting and thermal analysis, structural analysis

Alternative Approaches in SCMAlternative Approaches in SCMApproachApproach PrinciplePrinciple Applicability in Applicability in

constructionconstruction

Long-term relationshipsLong-term relationships

(Buzzell et al. 1995)(Buzzell et al. 1995)

Develop strong and long-term relationships with supply chain members to improve products, reduce costs, and develop more efficient processes and procedures.

It can be applied to negotiated jobs. Difficult in case of competitive bid jobs.

Working with fewer Working with fewer supplierssuppliers

(Davis 1994)(Davis 1994)

Dealing with fewer suppliers and carriers to encourage closer working relationships and allow greater use of supplier and carrier expertise.

Construction by itself requires supplier’s expertise

Inv. and cycle time Inv. and cycle time management with suppliersmanagement with suppliers (Inger et al. 1995)(Inger et al. 1995)

Working with supply chain members to reduce channel-wide inventory levels and cycle times, so as to reduce overall costs.

It requires interactive communication and collaboration

Strong commitmentStrong commitment (Christopher 1994)(Christopher 1994)

Building commitment at all levels of the organization to encourage implementation and continued use of SCM techniques.

It depends on managerial decision

Internet-based Internet-based Information sharingInformation sharing (Lee 2000, Rosenbaum 2001)(Lee 2000, Rosenbaum 2001)

Regularly sharing information Regularly sharing information with supply chain members, with supply chain members, allowing quicker response to allowing quicker response to changes and better short-term changes and better short-term and long-term planning.and long-term planning.

Technology driven Technology driven approach.approach.It fits well into the It fits well into the requirements of requirements of construction SCM.construction SCM.

Commercial SCM ApplicationsCommercial SCM Applications

Features IBS i2 Manhattan EXE SAP Mchugh IMI Descartes NxTrend HK

Decision support / Event

managemento o o o o o

Inventory management o o o o o o o o o

Order management o o o o o o o o o o

Production scheduling o o

Demand planning / forecasting o o o o

Supply planning o o oDistribution

planning o o o o o o

Transportation management o o o o o o o

Warehouse management o o o o o o o

Commercial SCM ApplicationsCommercial SCM Applications

Features IBS i2 Manhattan EXE SAP Mchugh IMI Descartes NxTrend HK

Decision support / Event

managemento o o o o o

Inventory management o o o o o o o o o

Order management o o o o o o o o o o

Production scheduling o o

Demand planning / forecasting o o o o

Supply planning o o oDistribution

planning o o o o o o

Transportation management o o o o o o o

Warehouse management o o o o o o o

Manufacturing SCM Manufacturing SCM applicationsapplications

Characteristics of Characteristics of AEC IndustryAEC Industry

Targeted at large trading partners

Medium to small firms

Configuration takes long

Quick configuration is critical in a project

Stable supply chains Project-based temporary supply chains

Web ServicesWeb Services

““Web services are Web services are encapsulated,encapsulated, loosely coupledloosely coupled contractedcontracted functions offered via standard functions offered via standard protocols.protocols.””

(Source: Webservices.org)

““Web services are a new breed of Web application. They Web services are a new breed of Web application. They are are self-contained, self-describing, modularself-contained, self-describing, modular applications that can be applications that can be published, located, and published, located, and invokedinvoked across the Web. Once a Web service is across the Web. Once a Web service is deployed, other applications (and other Web services) deployed, other applications (and other Web services) can discover and invoke the deployed service.”can discover and invoke the deployed service.”

(Source: IBM)

Web Service StandardsWeb Service Standards

InternetInternet

SOAPSOAP

WSDLWSDL

UDDIUDDI

BPELBPEL

Ubiquitous Ubiquitous CommunicationsCommunications

Service MessagingService Messaging

Formal Service Formal Service DescriptionsDescriptions

Publish, Discover Publish, Discover ServicesServices

Service AggregationService Aggregation

XM

L,

DTD

, X

ML,

DTD

, S

ch

em

aS

ch

em

a

Un

ivers

al D

ata

U

niv

ers

al D

ata

Fo

rmat

Form

at

Why Web Services?Why Web Services?

Benefits: Process automation Agility / Modularity Increased functionality 7-day, 24-hour Plug-and-play Dynamic

Challenges Loosely coupled,

distributed web services Trusted and transparent

environment is needed Interoperability issue

Service-Oriented ArchitectureService-Oriented Architecture

3 Types of Web applications:

Static Web Site(HTTP/HTML) Dynamic Web Site

(Java/J2EE)Connected Applications

(SOA)

SOA: Interconnected web of Web services (business, engineering, etc.)

Integration by Web Portal (iGoogle)Integration by Web Portal (iGoogle)

Tools

News

Entertainment

Information

Personal

Portlets

Guest Home PageGuest Home Page

SingleAuthentication

Project Information

Local Weather

22 Languages Supported

Timeout Capability (after 1 min…)Timeout Capability (after 1 min…)

Warning! Due to inactivity, your session has expired

Liferay PlatformLiferay Platform SC CollaboratorSC Collaborator is built on top of an open source

software, Liferay PortalLiferay Portal

Compatible to various Servlet containersServlet containers (e.g. Apache Tomcat, Jetty) Application serversApplication servers – commercial (e.g. OracleAS, IBM

Websphere, Weblogic) and open source (e.g. JBoss, JFox) DatabasesDatabases – commercial (e.g. Oracle, IBM DB2) and open

source (e.g. MySQL, PostgreSQL, InterBase)

Two installation options: Liferay Portal, Professional EditionProfessional Edition

Bundled with servlet container Liferay Portal, Enterprise EditionEnterprise Edition

Bundled with app. server and servlet container

N-tier deployment: separate web server, business implementation server, and database server

Used because of lightweight deployment and effciency

System Architecture – SC CollaboratorSystem Architecture – SC Collaborator

WML

WebServices

HTMLStruts Servlet

Axis Servlet

ClientsClients ServersServers

Web Server(HTTP and HTTPS)

and Servlet Container(e.g. Apache TomcatApache Tomcat,

Jetty, Resin)

Business Tier(connectivity, life-cycle mgt,

data access, transaction mgt, remote mgt, etc.)

Relational Database

(e.g. MySQLMySQL, Oracle)

HTTP

WAP

SOAP,WSDL

POJO: Plain Old Java ObjectWML: Wireless Markup Lang.WAP: Wirelsss Application Protocol

Session EJBContainer

Session EJBContainer

SpringFramework

POJO Implementation

(contains all business logic)

Javaclasses

JDBC

Liferay Built-inLiferay Built-in

Hiberna

te

Other apps or WS

Why Open Source?Why Open Source?

SC Collaborator SC Collaborator is built on top of Liferay Portal, Liferay Portal, Apache TomcatApache Tomcat and MySQLMySQL, all of which are open sourceopen source software

Open Source Success Stories: Apache Web Server – runs approx. 60% of websites Mozilla Web Browser – approx. 11% worldwide web

browser market share MySQL – used by Google, Orbitz, Department of

Homeland Security

SC CollaboratorSC Collaborator

Service-Oriented Architecture (SOA) Integration by web portal platform Open Source no license cost, low

maintenance cost Plug-and-use Extensible and scalable User-friendly

AgendaAgenda Supply Chain ManagementSupply Chain Management

Construction Supply Chain Lean Construction Information Sharing

SC Collaborator – Web-based platform for SC Collaborator – Web-based platform for construction supply chainconstruction supply chain Web Services Interfaces and System Architecture

System Demonstration and DiscussionSystem Demonstration and Discussion GC-Subcontractor-Supplier Collaboration Module Functionalities

SummarySummary

Project Floor PlanProject Floor Plan

Project ScheduleProject Schedule

Project Organization ChartProject Organization Chart

Jack Cheng[GC]

Jack Cheng[GC]

Scott. Co.[Foundation]

Scott. Co.[Foundation]

Suma Concrete[Concrete Walls]Suma Concrete

[Concrete Walls]

Carmel MEP[Mechanical, Electrical,

Plumbing]

Carmel MEP[Mechanical, Electrical,

Plumbing]

Minton Door[Mechanical]Minton Door[Mechanical]

Sasco Electrics[Electrical]

Sasco Electrics[Electrical]

SubcontractorsSubcontractors

GeneralGeneralContractorContractor

Initial ProcurementInitial Procurement

Web Service Gateway

Deployed Suppliers Web Services

Further Process

Order &Invoice

Suppliers

Architectural Design

Online catalog

ProcurementOffice

Managers

Inventory Management

Material Summary

Delay in Material DeliveryDelay in Material DeliverySend notificationSend notification

Reviewing the details of Purchase Order

GC and Subcontractor NotifiedGC and Subcontractor Notified

Subcontractor Reviewing ScheduleSubcontractor Reviewing Schedule

Availability Check for AlternativesAvailability Check for Alternatives

SC Collaborator for ExpeditingSC Collaborator for Expediting

Getting Quotes from other suppliers

New column with choices of suppliersNew column with choices of suppliers

Request for Schedule DelayRequest for Schedule Delay

Message Notification to SubcontractorsMessage Notification to Subcontractors

Project Transparency Project Transparency

Dates changed

Separated into ModulesSeparated into Modules

Current moduleCurrent module

Alternative modulesAlternative modulesSelected moduleSelected module

Project Module – Content ManagementProject Module – Content Management

Project Module – Supporting ToolsProject Module – Supporting Tools

Support Module – Module ConfigurationSupport Module – Module Configuration

Build page hierarchy

Manage page order

Manage child page

Support Module – Portal PropertiesSupport Module – Portal Properties

Support Module – User ManagementSupport Module – User Management

AgendaAgenda Supply Chain ManagementSupply Chain Management

Construction Supply Chain Lean Construction Information Sharing

SC Collaborator – Web-based platform for SC Collaborator – Web-based platform for construction supply chainconstruction supply chain Web Services Interfaces and System Architecture

System Demonstration and DiscussionSystem Demonstration and Discussion GC-Subcontractor-Supplier Collaboration Module Functionalities

SummarySummary

SummarySummary Construction SC is multi-participant, multi-disciplinary

Coordination and Transparency

Lean construction – max. value and min. waste

Information sharing – IFC and BIM

Integration of web contents by web services, SOA and web portal

Open source software for construction management

Summary (cont’d)Summary (cont’d)

SC CollaboratorSC Collaborator (web portal system)

Features: SOA, open source, integration of web applications by web

portal, plug-and-use, extensible and scalable, user-friendly

Functionalities: Module and portlet configuration, system mgt, user mgt, content

mgt, project mgt

GC-Subcontractor-Supplier scenario