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A Supply Chain Management (SCM) Framework

for Construction Project Delivery in Nigeria: An Analytical Hierarchy Process (AHP) Approach

 

FEATURED PAPER

*1Amade, B., 2Akpan, E. O. P., 3Ukwuoma, F. P. O., 4Ononuju, C. N., and 5Okore, O. L.

*1,4,Department of Project Management Technology
Federal University of Technology, P.M.B. 1526 Owerri, Nigeria

2,Department of Mechanical Engineering
Akwa Ibom State University, Ikot Akpaden, Mkpat Enin, Nigeria

3,National Centre for Technology Management
Obafemi Awolowo University,P.M.B. 012 Ile-Ife, Osun State, Nigeria

5,Physical Planning Department
Auchi Polytechnic, Auchi, Edo State, Nigeria

*Corresponding author email: [email protected]

 



ABSTRACT

This study sought to analyze the results of a survey that aims to develop a SCM framework for the successful delivery of construction projects using the analytical hierarchy process (AHP). The study adopted an exploratory research design with the aid of both quantitative and qualitative methods of research. Purposive and convenient sampling techniques were utilized with the aid of semi-structured interview, case study and questionnaire in selecting respondents from a construction firm in Port-Harcourt, Rivers State, Nigeria. Structured questionnaires were used as instrument for primary data collection after it was pre-tested via a pilot study for purposes of validity and reliability. The data collected were later analyzed using the AHP. Findings from the study shows that the following main factors; trust and long term relationships (TLR=0.283), supply chain finance (SCF=0.189), continuous performance measurement (CPM=0.154), information technology (IFT=0.099), quality (QTY=0.096), supplier management (SMT=0.078), top management’s support (TMS=0.055) and supply chain orientation (SCO=0.046) are key to the successful delivery of construction projects using the SCM approach. The findings indicates that when delivering construction projects via the SCM approach, more emphasis should be skewed towards the eight (8) (critical) factors in the hierarchy as they would drive the critical ingredient to achieving success in the delivery of projects using SCM. In a nutshell, the framework would kick start the drive to ensuring a drastic increase and improvement in the business of construction in Nigeria.

Key words: Analytical hierarchy process, Construction projects, Case study, Framework, Supply chain management

INTRODUCTION

SCM according to Shakerian et al.(2016) has become one of the important features through which the global industry can compete and as such is likely to remain a major element in worldwide competition. Given the current economic crisis engulfing nations and coupled with the competitive nature of most environments, there is the need to optimize supply chain activities of most organizations to help stem the tide of this recent upsurge. The term “supply chain” as stated by Irizarry et al.(2013), entails the delineation of the stages through which construction resources viz materials, equipment, and personnel proceed from supply (source) points to the constructions site

Tamošaitienė et al.(2017) stated that the main objective of SCM is to maximize value in the supply chain (SC) environment. SC in construction is concerned primarily with the planning and directing discrete quantities of materials to the construction site where the proposed project is articulated from incoming (raw) material components. A look at the industry indicates that a large proportion of waste generated ensues as a result of the poor management of the material SC viz; service delivery, inventory, communications.

SCM as opined by Tamošaitienė et al.(2017) was initially used in the 1980s, and is described by Ab Talib and Hamid (2014) as a systematic and strategic means of integrating business functions, from an end user perspective through to the original supplier by adding value to end products, services and information for users and other key stakeholders. A SC consists of all activities, functions, and facilities that are involved in the flow and transformation of goods and services from the material stage (raw state) to the end user (final stage). In this era of globalization and innovation, the delivery of construction projects needs to be achieved with the aid of technical skills and techniques that would contribute to an effective and efficient production of construction project and its sustainability in the nearest future (Mohammad et al., 2014). Hence, there is need for the construction industry to shifts its attention towards addressing the manufacturing of their products/deliverables in relation to keeping abreast with sustainability issues and waste generation within the construction environment. As opined by Albaloushi and Skitmore (2008), SC within the context of the construction industry, consists of all construction processes that starts from the initial demands made by the client/owner, through to the design and construction, to maintenance, replacement and subsequent demolition of projects. It further consists of firms involved in the construction process, viz the client/owner, designer, main contractor, subcontractor, and suppliers. Albaloushi and Skitmore (2008) further stated that, construction SCM is adjudged to be a group of firms, individuals working collaboratively in a network of interrelated processes that is structured in such a way that the end users needs are satisfied while also rewarding the entire constituents of the chain.

According to Aloini et al.(2012), the construction industry differs a great deal from the SCs noticeable within the goods and services sectors per se, largely as a result of the high complexity and uncertainty associated with the production process; the transitory state of its site during construction configuration; the high rate of customer influence on the deliverable; the fragmented state of its operations; and the complex state of its network of stakeholders involving multiple organizations and relationships amongst others. The peculiar nature of the industry alongside other cultural ties is some of the causes of the encumbrances militating against its inability to replicate some of the positive gains being experienced from other industries. From the information acquisition point of view, some of the problems associated with construction projects usually emanate from the aspect of data and information generation from construction sites. The effectiveness and efficiency of information and data flow between the office and the construction site is most time affected generally by the use of written documents, drawings, specifications and shop drawings causing the duplication of data and information, lack of data and information, and subsequent confusion. The means of processing information and data accumulation are not only time-consuming, but rather expensive thus leading to a compromise on project management performance in information acquisition process (Wang et al.,2007). With the advent of technology and culture, a lot of changes have been witnessed in the construction industry in recent time. Studies have shown that the industry is still not effective as a lot of problems bedeviling construction supply chain (CSC) could be identified easily. Majority of these problems to a greater extent are SC related that originate at the interface between the individual actors or stages involved in the CSC activity (Wang & Xue, 2004).

The  broad  objective  of  the  research  reported  in  this  paper,  therefore,  was  to  develop a SCM framework for the successful delivery of construction projects to fruition using the AHP. More specifically, the aim was to obtain an insight into the applicability of SCM practices in construction project delivery in Nigeria, with a view to gaining insights into the business of modern day use of cutting edge technology associated with SCM adoption on project performance and delivery in the Nigerian construction industry.

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About the Author


Benedict Amade, PhD

Federal University of Technology
Owerri, Nigeria

 

 

Benedict Amade is a Project Manager by Profession. He read and obtained a PhD (Doctor of Philosophy) Degree in Project Management Technology from the Federal University of Technology, Owerri, Nigeria. He is a member of the Project Management Institute (PMI) U.S.A. and presently lectures in the Department of Project Management Technology of the Federal University of Technology, Owerri, Nigeria for the past 9 years. His areas of research interest include construction project management, computer based project management and construction supply chain management. He has authored over 20 scientific publications in international refereed journals and is actively involved in other consultancy works. He can be reached on [email protected] or [email protected]

 


Edem Okon Peter Akpan, PhD

Akwa Ibom State University
Ikot Akpaden, Nigeria

 



Akpan, Edem Okon Peter
is a distinguished figure in the field of Project Management, Industrial Engineering and Information Technology. He is currently the Dean of the Faculty of Engineering and a Professor in the Department of Mechanical Engineering, Akwa Ibom State University. Ikot Akpaden, Nigeria. He read and obtained a B.Sc in Management and Engineering Production from the University of Wales, Institute of Science and Technology, Cardiff and an M.Sc and a Ph.D in Aston, Birmingham and Bradford respectively. He has published widely both in the local and international journals and in recognition of this feat has since been honoured to join the editorial boards of International Journal of Production Planning and Control of Taylor and Francis London and the Journal of Construction Engineering and Management of the American Society of Civil Engineers (ASCE). He is a registered Engineer (COREN), Member Nigerian Institute of Production Engineers, Member Nigerian Institute of Industrial Engineers as well as a consultant to many organizations. Professor Akpan can be reached on [email protected]

 


Festus Prince Okechukwu Ukwuoma, PhD

Obafemi Awolowo University
Ile-Ife, Osun State, Nigeria

 

 

Ukwuoma, Festus Prince Okechukwu is a Professor of Project Management and Chemical Engineering and currently the Director General of the National Centre for Technology Management (NACETEM), a Parastatal of the Federal Ministry of Science and Technology, Obafemi Awolowo University, Ile-Ife, Osun State. He was a former Head of Department of Project Management Technology and also a Former Associate Dean of the School of Management Technology, Federal University of Technology, Owerri. He is also one of the founding Lecturers of the Department of Chemical Engineering, Enugu University of Science and Technology (ESUT). His research interests are in the areas of Environmental Management, Project Risk and Safety, Process Design. He received a B.Sc. in Chemical Engineering, University of Ife, Ile-Ife. M.Sc. in Chemical Engineering, University of Ife, Ph.D.  Chemical Engineering/Project Management, Enugu State University of Science and Technology.  He is a Fellow of the following bodies; Nigerian Society of Engineers, Nigerian Society of Chemical Engineers, American Academy of Project Management, Renewable and Alternative Energy Society of Nigeria amongst other awards.  He can be reached on [email protected]

 


Charles Nnamdi Nonuju, PhD

Federal University of Technology,
Owerri, Nigeria

 

 

Ononuju, Charles Nnamdi is a Senior Lecturer in the Department of Project Management Technology, Federal University of Technology, Owerri, Nigeria. He was the former Director of FUTO Water Limited at the Federal University of Technology, Owerri, Nigeria. His research interests are in the areas of Construction Project Management, Contract Law and Arbitration. He received his B.Eng. in Civil Engineering, Federal University of Technology, Owerri, Nigeria, as well as an M.Sc. and PhD in Project Management Technology both at the Federal University of Technology, Owerri, Nigeria. Dr. Ononuju has also worked with Private Construction Firms as a Consulting Civil Engineer in the past before joining the Federal University of Technology, Owerri. He is a COREN Registered Engineer and a Member of the Nigerian Society of Engineers (NSE). He can be reached on [email protected]

 


Ogaga Linus Okore

Auchi Polytechnic
Auchi, Edo State, Nigeria

 



Okore, Ogaga Linus 
obtained a B.Sc – Building from Ambrose Alli University, Ekpoma. Thereafter, he acquired an M.Sc – Project Management Technology from the Federal University of Technology, Owerri, Nigeria. Presently, he is currently undergoing a doctorate degree program in Construction Management at the Ahmadu Bello University, Zaira. He works with the Auchi Polytechnic Auchi as a Building Officer in the Physical Planning Department. He can be reached on [email protected]