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Applications of blockchain for construction project procurement

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

Incentive-based coordination for scheduled delivery in prefab construction

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

Allocating Safety Cost using in Construction Site

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

Blockchain-Enabled Supply Chain Coordination for Off-Site Construction Using Bayesian Theory for Plan Reliability

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

The Impact of Empowering Front-Line Managers on Planning Reliability and Project Schedule Performance

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

Management Thinking in the Earned Value Method System and the Last Planner System

Kim, Yong-Woo; Ballard, Glenn. (2010). Management Thinking in the Earned Value Method System and the Last Planner System. Journal Of Management In Engineering, 26(4), 223 – 228.

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Abstract

Management theory has been neglected in the construction industry, which has rather focused on best practices. This paper investigates the theories implicit in two prevalent project control systems: the earned value method (EVM) and the last planner system (LPS). The study introduces two fundamental and competing conceptualizations of management: managing by means (MBM) and managing by results (MBR). The EVM is found to be based on MBR. However, project control based on MBR is argued to be inappropriate for managing at the operational level where tasks are highly interdependent. The LPS is found to be based on the MBM view. The empirical evidence from literature and case study suggested that the MBM view is more appropriate to manage works when it is applied to the operation level where each task is highly interdependent.

Keywords

Last Planner System (lps); Management Thinking; Performance Measures; Project Control

Dynamic Production Scheduling Model Under Due Date Uncertainty in Precast Concrete Construction

Kim, Taehoon; Kim, Yong-Woo; Cho, Hunhee. (2020). Dynamic Production Scheduling Model Under Due Date Uncertainty in Precast Concrete Construction. Journal Of Cleaner Production, 257.

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Abstract

Precast concrete structures (PCs) are widely used in the construction industry to reduce project delivery times and improve quality. On-time delivery of PCs is critical for successful project completion because the processes involving precast concrete are the critical paths in most cases. However, existing models for scheduling PC production are not adequate for use in dynamic environments where construction projects have uncertain construction schedules because of various reasons such as poor labor productivity, inadequate equipment, and poor weather. This research proposes a dynamic model for PC production scheduling by adopting a discrete-time simulation method to respond to due date changes in real time and by using a new dispatching rule that considers the uncertainty of the due dates to minimize tardiness. The model is validated by simulation experiments based on various scenarios with different levels of tightness and due date uncertainty. The results of this research will contribute to construction project productivity with a reliable and economic precast concrete supply chain. (C) 2020 Elsevier Ltd. All rights reserved.

Keywords

Multiple Production; Demand Variability; Supply Chain; Shop; Management; Minimize; Lines; Precast Concrete Production; Dynamic Simulation; Uncertainty; Production Scheduling; Dispatching Rule

A Case Study of Activity-Based Costing in Allocating Rebar Fabrication Costs to Projects

Kim, Yong-Woo; Han, Seungheon; Shin, Sungwon; Choi, Kunhee. (2011). A Case Study of Activity-Based Costing in Allocating Rebar Fabrication Costs to Projects. Construction Management And Economics, 29(5), 449 – 461.

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Abstract

How to improve cost allocation for reinforced steel bar (rebar) is an ongoing topic of debate among construction manufacturers and contractors. Traditionally, many fabrication shops have used a single overhead-cost pool accounting system. However, a new costing method, activity-based costing (ABC), may provide more advantages than the traditional system. In this case study, a single overhead-cost pool system is compared with the ABC method to demonstrate how ABC improves cost allocation and provides other benefits. The case study findings indicate that ABC provides such benefits as (1) accurate manufacturing costs; (2) cost information on processes; and (3) information on cost drivers. This paper also bridges the construction and cost accounting literature. Our study contributes to the construction management literature by offering a different cost allocation method to refine fabrication costs assigned to projects. The findings are expected to serve as a reference for industry professionals who recognize the shortcomings of a traditional single overheadcost pool system and are in need of a more accurate costing system. © 2011 Taylor & Francis.

Keywords

Bridges; Costs; Fabrication; Lakes; Project Management; Rebar; Accounting System; Activity Based Costing; Construction Management; Fabrication Shops; Industry Professionals; Manufacturing Cost; Overhead Costs; Traditional Systems

The Impact of Empowering Front-Line Managers on Planning Reliability and Project Schedule Performance

Kim, Yong-Woo; 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).

View Publication

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

Psychological Empowerment; Work; Model; Variables; System; Job; Planning Reliability; Production Planning; Scheduling Performance; Structural Empowerment; Structural Equation Modeling

Comparative Assessment of Life Cycle Impacts of Curtain Wall Mullions

Azari-N, Rahman; Kim, Yong-woo. (2012). Comparative Assessment of Life Cycle Impacts of Curtain Wall Mullions. Building And Environment, 48(1), 135 – 145.

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Abstract

Glass curtain wall (Cw) systems have been inevitable elements of commercial buildings for over a century. The systems mainly consist of mullion materials and glazing units that are selected and designed to achieve the desired structural, thermal and daylighting performances as well as to meet cost and aesthetic concerns. The health and environmental life cycle impacts of CW systems, however, are not usually considered in design. The main objective of this paper is to study how change of mullion materials would affect the health and environmental impacts associated with a typical CW system over its life cycle. The mullion materials studied for the purpose of this paper include extruded aluminum, carbon steel and glulam timber. Also, the health and environmental impact categories of interest include global warming, acidification, eutrophication and human toxicity. To achieve the objective, a process-based cradle-to-gate attributional Life Cycle Assessment (LCA) method was applied. Results indicate that CW system with glulam timber mullions causes the least and CW system with extruded aluminum mullions causes the most damage to the environment and human health over their life cycle. A CW system with carbon steel mullions falls in-between. (C) 2011 Elsevier Ltd. All rights reserved.

Keywords

Commercial Building; Comparative Assessment; Curtain Walls; Environmental Life Cycle; Glass Curtain Walls; Inventory Analysis; Life Cycle Assessment (lca); Life Cycle Impacts; Aluminum Coated Steel; Ecodesign; Eutrophication; Global Warming; Health; Life Cycle; Office Buildings; Timber; Walls (structural Partitions); Energy; Wood; Products; Life Cycle Assessment; Environmental Impact; Curtain Wall; Mullion Material; Acidification; Aluminum; Attributional Life Cycle Assessment; Buildings; Carbon; Environmental Health; Glass; Glulam; Human Health; Humans; Materials Life Cycle; Steel; Toxicity