Kim, M., & Kim, Y.-W. (2024). Applications of blockchain for construction project procurement. Automation in Construction, 165, 105550-. https://doi.org/10.1016/j.autcon.2024.105550
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Abstract
Blockchain technology has shown potential in enhancing project performance by instilling trust in data sharing among stakeholders, thereby encouraging the stakeholders to ensure a strategic acquisition and resource management through procurement activities. However, despite the recent research efforts on blockchain in the construction sector, there is a lack of knowledge of the status quo in that barely any research investigated the synergy of blockchain and procurement by recognizing the inextricable linkage between procurement management and project delivery system. This paper conducts a systematic review of 54 articles to assess blockchain's potential in addressing issues inherent in the current organizational structures and collaborative efforts. Findings offer profound insight into the current landscape of procurement-specific blockchain research, highlighting areas needing attention. This paper identified opportunities in construction procurement by investigating the extent to which the technology is integrated into the current project management context emphasizing integration and collaboration.
Keywords
Blockchain; Procurement; Construction industry; Procurement process; Project delivery system; Literature review
Kim, Y.-W., & Rhee, B.-D. (2024). Incentive-based coordination for scheduled delivery in prefab construction. Construction Management and Economics, 1–16. https://doi.org/10.1080/01446193.2024.2305763.
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Abstract
An increasing number of projects are adopting prefabrication to economize on time, labor, and materials in fixed-position layout operations, such as construction, ship building, and aircraft manufacturing. In such contexts, independent contractor and fabricator make interdependent decisions, which calls for prudent supply chain management because performance relies on coordination between their decisions. Many studies have developed integrated systems and propose various algorithms for scheduling efficiency and reliability. Nevertheless, they pay scant attention to conflicting interests amongst independent partners, which may result in subpar performance not only for the supplier but for the contractor as well. Coordination of conflicting interests has been extensively studied in economics and supply chain management; yet, those studies focus on order-quantity decisions under demand uncertainty for profit maximization, while managers in fixed-position operations are more concerned about delivery decisions under scheduling uncertainty for cost minimization. We consider the case of construction and explore a contractual scheme that aligns the agents' decisions for coordination in a construction supply chain. Specifically, we propose a supplier rebate for coordination: the supplier grants a rebate if the contractor accepts the shipment in accordance with the delivery schedule that the contractor initially chose. We show that the optimal rebate fully coordinates the supply chain to minimize the joint supply chain costs. Thus, both the contractor and supplier benefit from the coordination by negotiating a mutually acceptable way to allocate the savings in joint costs between them. We further show that the rebate motivates the contractor to enhance its work scheduling.
Keywords
Construction supply chain; coordination; delivery schedule reliability; prefabrication; rebate for scheduled delivery
Kim, S., & Kim, Y. (2023). Allocating Safety Cost using in Construction Site. Tehnički Glasnik, 17(4), 594–597. https://doi.org/10.31803/tg-20230104151203
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Abstract
Environments, Health, and Safety (EHS) activities are strongly linked to the concept of sustainability in the current construction industry and consequently absorb more financial and managerial attention. One of major obstacles in EHS costing is that most EHS costs are buried in general overhead costs. Therefore, EHS costs lacks transparency, making it hard to allocate EHS costs to relevant construction projects. This paper present a recent study in which a method of activity-based costing (ABC) has been applied to safety costs at a contractor's home office. The list of safety activities, their cost drivers as well as their cost information on one of Korean general contractor is provided. The authors expect that the application of ABC will improve transparency in costing EHS costs as well as allocating EHS costs to projects.
Keywords
budget; safety accident; safety management; safety law
Kim, M., Zhao, X., Kim, Y.-W., & Rhee, B.-D. (2023). Blockchain-enabled supply chain coordination for off-site construction using Bayesian theory for plan reliability. Automation in Construction, 155, 105061–. https://doi.org/10.1016/j.autcon.2023.105061
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Abstract
The potential of blockchain is being widely explored within the construction industry, particularly for transparent communication and information sharing. However, only limited research has focused on implementing blockchain to address the challenge of aligning conflicting interests among independent agents, specifically, supply chain coordination. This paper develops a blockchain-enabled supply chain coordination system that facilitates the alignment of diverse decisions made by stakeholders in an off-site construction supply chain. To achieve this goal, Bayesian updating is employed to estimate the probabilistic distribution of plan reliability, enabling the calculation of a supplier rebate that incentivizes the contractor to schedule deliveries aimed at minimizing joint supply chain costs. Additionally, the paper describes a blockchain-enabled system that allows practitioners to measure plan reliability. The research findings demonstrate that the blockchain-enabled supply chain coordination system fosters shared common knowledge among project stakeholders and facilitates real-time updates of changes in the contractor's plan reliability, aligning the interests of both the supplier and contractor.
Keywords
Supply chain coordination; Bayesian updating; Plan reliability; Rebate pricing; Blockchain; Smart contracts; Off-site construction
Kim, Yong-Woo, and Rhee, Byong-Duk. (2020). The Impact of Empowering Front-Line Managers on Planning Reliability and Project Schedule Performance. Journal of Management in Engineering, 36(3).
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Abstract
This study applies empowerment theory to production planning at the level of frontline managers in a construction project. Using structural equation modeling, we investigate how empowering frontline managers impacts their planning performance. In contrast to prior studies, we find that although psychological empowerment of frontline managers has no direct effect on their production planning reliability or scheduling performance, it has an indirect effect on planning reliability and scheduling performance, as long as the organization supports the empowerment structurally during production planning. This implies that a project manager should provide frontline managers at the operational level with proper formal and informal authority over workflow development, shielding, and resource allocation when planning production in order to enhance job performance through psychological empowerment. This study contributes to the body of knowledge on construction management by exploring the impact of psychological and structural empowerment of frontline managers on their performance of production planning reliability and scheduling performance.
Keywords
Organizations, Managers, Structural models, Scheduling, Structural reliability, Construction management, Human and behavioral factors, Resource allocation
Kim, Taehoon; Kim, Yong-woo; Cho, Hunhee. (2016). Customer Earned Value: Performance Indicator from Flow and Value Generation View. Journal Of Management In Engineering, 32(1).
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Abstract
The earned value method (EVM) is considered an advanced project control technique that provides a quantitative measure of work performance. However, the EVM is effective only under the assumption that every activity is independent. Literature shows that the EVM lacks the value generation view even working against the reliability of workflow. The goal of this research is to propose a project metric system to supplement the EVM in terms of the workflow and value generation. The researchers suggest a new metric of customer earned value (CEV), which is defined as the budgeted amount of work completed and is used by the successors on a network. Through a hypothetical case study, this research investigates how the work-in-process between trades and schedule performance in each trade behave under different uncertainties. The result suggests that the proposed metrics can provide project managers with more relevant managerial information on project progress as well as on the level of collaboration. The proposed system with the EVM would facilitate collaboration on project planning and control where variability and interdependency are involved. (C) 2015 American Society of Civil Engineers.
Keywords
Budgeting; Customer Services; Organisational Aspects; Planning; Project Management; Customer Earned Value; Project Planning; Project Managers; Trade-schedule Performance; Work-in-process; Budgeted Amount; Project Metric System; Advanced Project Control Technique; Earned Value Method; Performance Indicator; Value Generation View; Management; Project Control Metric; Collaboration
Park, Hyoungbae; Kim, Kyeongseok; Kim, Yong-woo; Kim, Hyoungkwan. (2017). Stakeholder Management in Long-Term Complex Megaconstruction Projects: The Saemangeum Project. Journal Of Management In Engineering, 33(4).
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Abstract
This paper identifies 31 critical success factors (CSFs) and suggests a framework for effective stakeholder management in long-term complex megaconstruction (LCM) projects that require more than 10 years for multipurpose development. The results of a survey on the prioritization of these 31 CSFs reveal that LCM projects involve more stakeholders than do general construction projects and require a correspondingly wider range of changes during each project. To identify more systematic and strategic approaches to stakeholder management in LCM projects, a framework was developed through factor analysis and focus-group interviews with project management experts. The framework is composed of the following five agendas: clear understanding of stakeholders, clear definition of the project, effective communication, responding to environmental changes, and social cooperation. The analysis results show that LCM projects require a stronger emphasis on responding to environmental changes and social cooperation. These results, along with the CSF priorities, reveal the necessity of taking customized approaches to LCM projects. The results of this analysis are expected to help LCM project managers effectively manage stakeholders. (C) 2017 American Society of Civil Engineers.
Keywords
Construction; Environmental Management; Project Management; Strategic Planning; Social Cooperation; Environmental Changes; Strategic Approaches; Construction Projects; Saemangeum Project; Long-term Complex Megaconstruction Projects; Stakeholder Management; Critical Success Factors (csfs); Long-term Complex Megaconstruction (lcm) Projects
Shakouri, Mahmoud; Lee, Hyun Woo; Kim, Yong-woo. (2017). A Probabilistic Portfolio-Based Model for Financial Valuation of Community Solar. Applied Energy, 191, 709 – 726.
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Abstract
Community solar has emerged in recent years as an alternative to overcome the limitations of individual rooftop photovoltaic (PV) systems. However, there is no existing model available to support probabilistic valuation and design of community solar based on the uncertain nature of system performance over time. In response, the present study applies the Mean-Variance Portfolio Theory to develop a probabilistic model that can be used to increase electricity generation or reduce volatility in community solar. The study objectives include identifying the sources of uncertainties in PV valuation, developing a probabilistic model that incorporates the identified uncertainties into portfolios, and providing potential investors in community solar with realistic financial indicators. This study focuses on physical, environmental, and financial uncertainties to construct a set of optimized portfolios. Monte Carlo simulation is then performed to calculate the return on investment (ROI) and the payback period of each portfolio. Lastly, inclusion vs. exclusion of generation and export tariffs are compared for each financial indicator. The results show that the portfolio with the maximum output offers the highest ROI and shortest payback period while the portfolio with the minimum risk indicates the lowest ROI and longest payback period. This study also reveals that inclusion of tariffs can significantly influence the financial indicators, even more than the other identified uncertainties. (C) 2017 Elsevier Ltd. All rights reserved.
Keywords
Solar Energy; Photovoltaic Power Systems; Monte Carlo Method; Market Volatility; Energy Economics; Community Solar; Monte Carlo Simulation; Photovoltaic Systems; Portfolio Theory; Uncertainty; Environmental Uncertainties; Financial Indicator; Financial Uncertainties; Physical Uncertainties; Identified Uncertainties; Probabilistic Model; Mean-variance Portfolio Theory; Probabilistic Valuation; Individual Rooftop Photovoltaic Systems; Financial Valuation; Probabilistic Portfolio-based Model; Investment; Monte Carlo Methods; Photovoltaic Cells; Risk Analysis; Tariffs; Resolution Lidar Data; Electricity Consumption; Pv Systems; Autoregressive Models; Potential Assessment; Generation Systems; Neural-networks; Energy; Buildings; Economic Theory; Electricity; Exports; Probabilistic Models; Risk
Yi, June-seong; Kim, Yong-woo; Lim, Ji Youn; Lee, Jeehee. (2017). Activity-Based Life Cycle Analysis of a Curtain Wall Supply for Reducing Its Environmental Impact. Energy And Buildings, 138, 69 – 79.
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Abstract
Life-Cycle Assessment has been used extensively in the construction industry to assess the environmental impacts of building materials. Attributional LCA considers processes in a supply chain which allows users to identify a process to improve to minimize the environmental impacts. However, the level of detail adopted in traditional attributional LCA is aggregate, not appropriate for process improvement efforts in the construction project context which is characterized as a complex system. This paper proposes Activity-based LCA (ABLCA) which adopts the methodology of the activity-based costing system to carry out the assessment and analysis of environmental impacts for the life cycle. The research carried out a case study on the curtain wall supply chain. The outcome of inventory analysis for each activity and environmental impact assessment showed the curtain wall supply chain process made an impact on five environmental impact categories: global warming air, acidification air, HH criteria air; eutrophication air, and photochemical smog air. With comparison to the outcome of environmental impact assessment from existing LCA, the proposed management system to investigate environmental impacts was addressed. The proposed ABLCA enables management to develop an environmental-impacts-reduction plan focusing on critical activities. (C) 2016 Elsevier B.V. All rights reserved.
Keywords
Construction Industry & The Environment; Energy Conservation In Construction Industry; Building Materials & The Environment; Complexity (philosophy); Global Warming & The Environment; Activity-based Management; Attributional Lca (life-cycle Assessment); Curtain Wall; Environmental Impacts; Activity-based Life Cycle Analysis; Ablca; Construction Industry; Building Materials; Inventory Analysis; Life-cycle Assessment; Environmental Impact Categories; Curtain Wall Supply Chain Process; Environmental Impact Assessment; Environmental-impacts-reduction Plan; Environmental Factors; Inventory Management; Life Cycle Costing; Product Life Cycle Management; Supply Chain Management; Walls; United-states; Performance; Buildings; Energy; Trends; Lca; Environmental Impact; Supply Chains; Environmental Assessment; Construction Materials; Life Cycle Engineering; Eutrophication; Life Cycle Analysis; Construction; Climate Change; Global Warming; Smog; Life Cycle Assessment; Case Studies; Cost Analysis; Acidification; Photochemical Smog; Environmental Management; Life Cycles
Kim, Yong-Woo. (2019). The Impact of Make-Ready Process on Project Cost Performance in Heavy Civil Construction Projects. Production Planning & Control. The Management Of Operations, 30(13), 1064 – 1071.
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Abstract
The research investigates the relationship between the production plan reliability and the project cost performance using project data in the heavy civil construction sector. The research also investigates the attributes of a make-ready process using the statistical analysis. This study shows that production planning reliability (i.e. Per cent Constraint Removal (PCR) and Per cent Plan Complete (PPC)) and project cost performance (CPI) are significantly correlated in the heavy construction projects. The findings show that there is a more significant correlation between production planning reliability and project cost performance in project-scaled data than in monthly scaled data. They suggest that there is a time-lag between when the variance of workflow occurs and when the workflow variance impacts on the project cost performance. The result of the analysis also shows that the measure of make-ready process, PCR, has a more significant correlation with the project cost performance than the measure of weekly plan reliability, PPC.
Keywords
Construction Equipment; Construction Industry; Production Planning; Statistical Analysis; Heavy Construction Projects; Production Planning Reliability; Project Data; Production Plan Reliability; Civil Construction Projects; Make-ready Process; Project Cost Performance; Project-scaled Data; Construction Planning; Ppc (per Cent Plan Complete); Pcr (per Cent Constraints Removal)