Improving the efficiency and performance of the supply chain in the construction industry

Abstract

The interconnectedness of the supply chain, project management and leadership are key to an operational model being developed in the supply chain of the construction industry. There are numerous challenges that are said to inhibit the smooth operation of supply chains in construction projects; however, considered through the lens of systems thinking and a soft systems methodology (SSM), the definition or cause of a problematic situation is often not clearly defined. The aim of this study was to apply SSM in relation to the supply chain processes of a construction site in Rosebank, Johannesburg, in the Gauteng province of South Africa critically, in order to determine how to make possible changes for incremental improvement of the efficiency and performance of the supply chain processes. A descriptive research framework was performed, where purposive sampling was used to recruit a sample of managers, subcontractors and workers involved with supply chain tasks on the chosen construction site. To gather the necessary data, open-ended questions were presented through face-to-face interviews with the sample; after which, the data was analysed in two stages: Phase One involved the qualitative thematic analysis of the interview transcripts, and Phase Two required performing SSM on the data. A wide spectrum of themes was deciphered from the study, following the SSM analysis, which confirmed that the definition and cause of a problematic situation is often not clearly defined; and indeed, there is often not even consensus on whether a problem exists to begin with. A key example of the ‘messiness’ of the supply chain of this project was observed in the case of aspects such as handling, scheduling, procurement, storing and safety, where despite the numerous comments describing their strengths in the project’s supply chain, these aspects were also noted by numerous individuals to be problematic in the supply chain as well. In deciphering exactly why the project’s management was failing to overcome the challenges on the project supply chain, this research ascertained how the soft characteristics of the project managers (PMs) had limited the effectiveness of the supply chain on the project. Specifically, it was found that issues with the vision, risk-taking, emotional intelligence, trust, selfawareness, supportiveness, communication and motivation to the subcontractors and workers had limited the effectiveness of the supply chain on the project by causing worker-related problems; manager-specific problems; and reduced project efficiency. The results of this study therefore concurred with the literature that there was a need for the PMs on the site to employ a more worker-centred style of management, to be able draw the most from the workers. It was argued here, though, that while suggestions in the literature call for a PM to be a ‘servant’ of the worker, the priority for this project should instead have been more towards striking a balance between the current principles of client focus, and Servant Leadership. It was also argued here that PMs clearly needed to improve communication skills to enhance the efficiency of the project, or to make future undertakings more efficient and smooth running. Finally, at the culmination of the SSM, a model for change was developed to help cope with the numerous internal and external inhibitory factors surrounding the project site; whereby, changes that were noted that were the most feasible changes, requiring the least effort and producing the most benefit, were for the management to negotiate a later hand-over time for the project; and to have the workers work over-time to strive to complete the project faster. It was also recommended that equipment efficiency should be increased; to recycle the space on the site; for aspects of the site management to become less autonomous; for the management to check work quality and ensure work adherence; to provide earlier communications on delivery; for the management to ensure work understanding across the site; and for the management to perform more forward planning. Indeed, such changes should, theoretically at least, be immediate changes that could be made on this, or any construction project, and would tentatively draw instant tangible results without requiring considerable financial outlay, stakeholder buy-in, or managerial approval. Consequently, SSM has proven to be a powerful means of measuring the supply chain processes of a new office construction project in Rosebank, Johannesburg.