Elsevier

Automation in Construction

Volume 24, July 2012, Pages 120-129
Automation in Construction

Analyzing the benefits of RFID technology for cost sharing in construction supply chains: A case study on prefabricated precast components

https://doi.org/10.1016/j.autcon.2012.02.005Get rights and content

Abstract

The problems encountered in the current manual material tracking methods result in late deliveries, missing components and incorrect installations. Automated data collection technologies, such as Radio Frequency Identification (RFID), are promising technologies that can be used to efficiently track components in construction supply chains. However, it is still not clear how the cost of technology investment should be shared among supply chain members. This study proposes the use of a cost sharing ratio, which is calculated for each party based on the benefits received. A case study was conducted at a prefabricated exterior concrete wall panel supply chain, and a simulation‐based decision-support tool was used to model the current manual phase and automated phases. The simulation results were used to determine and analyze the benefits and related cost savings of RFID for each party, and a cost sharing ratio was calculated for distributing the technology investment cost among parties.

Highlights

► The study investigates pre-fabricated exterior concrete wall panel supply chain. ► Three simulation models are developed for representing manual and RFID-based cases. ► The benefits and cost savings of RFID integration were analyzed for a supply chain. ► A cost sharing ratio is calculated for each party in the supply chain. ► The cost sharing ratio is used to distribute the technology investment cost.

Introduction

It is a challenging task to efficiently identify, track and locate components through a construction supply chain as it is usually performed manually by using paper-based methods. The problems encountered in the current manual material tracking methods result in late deliveries, missing components and incorrect installations, which lead to additional labor and material costs. Previous studies show that automated data collection technologies (ADCTs) (i.e., radio frequency identification (RFID), laser scanner, global positioning systems (GPS), wireless sensors, high-resolution cameras, ultra wideband) can be used to improve the efficiency of identification and track activities in the construction industry [1], [2], [3], [4], [5], [6], [7], [8], [9]. However, it is still difficult for construction practitioners to make an investment decision since it is not clear how the cost of an ADCT investment will be shared among different parties.

The study explained in this paper proposes to calculate a cost sharing ratio for distributing the cost of ADCT in a construction supply chain based on the benefits received by each supply chain member. Some previous studies identified the benefits of ADCT by focusing on certain tasks and quantifying the benefits of ADCT for performing specific activities, such as identification, locating, delivery and receipt of construction components [2], [6], [10], [11]. In other studies, the advantages of ADCT were determined through simulation models by comparing current processes with automated processes [1], [12], [13]. In these studies, the identified benefits of ADCT for the construction industry were limited to certain activities, which are usually observed in one phase.

This paper presents a case study and a simulation-based decision-support tool which was developed: (1) to assess the benefits of ADCT utilization for different parties in a supply chain; and (2) to identify how the investment cost will be distributed among these parties. In the case study, a supply chain of prefabricated concrete wall panels was investigated. Simulation models were developed to quantify the benefits of each party for the base case and ADCT cases. Basic production, transfer and installation activities were modeled focusing on operational activities, such as related identification and locating tasks in the prefabrication and the construction phases. The analysis of the simulation results shows the benefits (i.e., time savings) observed by using two ADCT based approaches (e.g., semi-automated RFID and automated RFID). Related cost savings were determined and a cost sharing ratio was calculated for the supply chain members based on the cost savings of each member.

Section snippets

Background research

In the current material tracking approach, paper based methods are used when transferring, locating, shipping and receiving prefabricated concrete wall panels in construction supply chains. Previous research studies highlight that the manual material tracking approach is time consuming and results in late deliveries, mislocated components and incorrect installations [2], [4]. To improve the current process, the utilization of ADCT for material tracking was proposed and the technical feasibility

Case study and data collection

This paper investigates a supply chain of prefabricated concrete exterior wall panels. Fig. 1 presents an overview of the production area in the plant. The dimensions of a prefabricated panel are 3 m by 5 m (Fig. 1). 3500 pieces of prefabricated concrete panels were produced for the investigated project: a 126,000 m2 residential building project. At the production plant, it takes 24 h to produce a panel; therefore, they operate in multiple-shifts. At one time, approximately 500 pieces of panel are

Simulation models

In this research study, three different simulation models were developed: one for the base case and two for the SA and FA RFID cases. The goal was to determine the benefits of using RFID technology and also to compare the benefits for the SA and FA cases. A discrete event simulation approach was followed to represent activities performed across the supply chain of prefabricated wall panels. A discrete event simulation technique was selected since it has been accepted as an appropriate method

Sensitivity analysis

The purpose of the sensitivity analysis was: (1) to determine whether the simulation will yield similar results if the input values that are entered in the model have some uncertainties and differ from the actual values; and (2) to understand whether the simulation model works as designed. To identify the sensitivity of the simulation results, changes in the probability of finding the panel in the extended search is examined, since this critical parameter can vary based on the worker's

Conclusions

In this study a simulation-based tool was used to model the exterior concrete panel supply chain and to identify the benefits and related cost savings for calculating a cost sharing ratio among different parties (i.e., manufacturer and contractor) in a supply chain. The supply chain was modeled as a two-echelon supply chain, including the prefabrication and construction phases. Three simulation models were developed to compare the current manual approach (i.e., base case) with RFID integrated

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