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Development of the logistics plans in building construction

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 Development of the Logistics Plans in Building Construction
S. M. B. Serra
Professor Doctoress of Civil Engineering Department of São Carlos Federal University, São Carlos, SP,
Brazil
O. J. Oliveira
Doctor Student of Civil Construction Program of São Paulo University, Professor of São Judas University,
São Paulo, SP, Brazil

ABSTRACT: The main objective is to present a tool for the development and implementation of logistics
plans in building construction. Firstly it shows a review of related concepts. These are followed by a study of
the relationship of the logistic plan with the elements that conditions its success. These are considered as main
requirements for correct plan formulation, such as: simultaneity among external logistics (control of
suppliers) and internal logistics (construction site management). In conclusion, this paper present the
guidelines for formulation and implantation of logistics plans that will aid in the operational planning of the
work, programming of the deliveries of materials and improvement in the conditions of the work. Application
of the logistics guidelines cited is directly dependent on a change in the culture and structure of construction
companies, which must perforce begin to use lean thinking to guide decisions and to execute activities in
every organizational level, with special emphasis on top management.

1 INTRODUCTION the implementation of new technical and managerial

tools.
The new production philosophy (lean production)
According to Vrijhoef; Koskela (1999), the
sees the productive system as a group of
supply chain has been defined as the network of
interconnected and interdependent conversions and
organizations that are involved, through upstream
flow activities that should, ideally, encompass
and downstream linkages, in the different processes
broader concerns than a mere analysis of the
and activities that produce value in the form of
productive process alone. The growing awareness of
products and services in the hands of the ultimate
the importance of improving the flow of materials
customer. The traditional way of managing is
and information has given rise to the emergence of a
essentially based on a conversion view (or
new production paradigm that is generating
transformation view) on production, whereas supply
auspicious results.
chain management (SCM) is based on a flow view
Seen from the standpoint of lean production,
of production. Koskela (1998) mentions that the
innumerable criticisms can be made of the
conversion view suggests that each stage of
traditional production model, which, by focusing
production is controlled independently, whereas the
solely on conversions, neglects the physical flow
flow view focuses the control of the total flow of the
occurring between them, that is, the activities of
production.
transportation, storage and inspection. Because they
Thus, the optimal construction site management
add no value to the final product and are consumed
requires the identification of all the agents present
time and expensive, these activities should be
on the site. Each phase of the construction involves a
eliminated or reduced to a minimum.
variety of suppliers and subcontractors who
Now that the concept of lean production has
contribute to the production with a multiplicity of
matured and it was implemented by the
materials and services. Other agents in the
manufacturing industry, it has finally begun to
productive chain also participate in the construction
arouse the interest of civil construction managers,
process. Edum-Fotwe et al. (2001) presents
originating what can be dubbed lean construction.
examples of different actors that participate in some
Nonetheless, the application of this philosophy in
of the phases of the supply chain. During the
the construction sector still requires experimentation
construction the most important agents are: main
and research aimed at adapting it to the sector’s
contractor, subcontractors, project manager, material
particularities, which are usually factors that hinder
suppliers, equipment suppliers, designers, financial
institution, insurance agency and regulatory bodies.
2 LOGISTICS IN THE BUILDING
CONSTRUCTION
Construction logistics is a multidisciplinary process
applied to a given construction to ensure the supply,
storage, processing and availability of material
resources on the construction site, to dimension the
production teams and to manage the physical flows
of production. Silva & Cardoso (1998) state that the
main support of this process, which occurs through
planning, organization, management and control
activities, is the flow of information prior to and
during the productive process.
Cardoso (1996) presents a subdivision for
logistics applicable to construction companies,
classifying it, in terms of scope, as supply logistics
(external) and on-site logistics (internal). This
subdivision allows for a clearer identification of the
main activities associated with construction site
logistics.
2.1 Supply Logistics
Supply logistics involves provision of the material
and human resources required for the building
supplier
75%
21%
9% 16%
Transportation Storage Loading Unloading
by forklift by crane
Figure 1 – Division of the logistics costs in the plasterboard deliveries (Wegelius-Lehtonen, 2001)
According to Wegelius-Lehtonen (2001), the
standard materials, like timber, mortar and
plasterboard, have the biggest logistics costs of
material flows as percentage of the purchasing price,
because the logistics chain of standard materials
consist of many movements and warehousing. The
accuracy and delivery time analysis is most useful in
the development of customized material deliveries,
like windows, concrete elements and kitchen
cabinets. With the accuracy and delivery time
analysis, the improvement potential in information
flows and co-ordination can be identified.
2.2 On-Site Logistics
On-site logistics involves the management of the
physical flows and information flows associated
with on-site activities, the most important activities
production. Among the most important activities are
planning and processing of purchased items, supplier
management, transportation of resources to the site,
and maintenance of the material resources foreseen
in the planning.
Wegelius-Lehtonen (2001) presents two tools
developed to measure the improvement potential of
deliveries process. The tools measure costs and time
of delivery chains. The first step is to identify all the
activities from the supplier’s production line to the
final assembly of product on construction site. The
second step is to calculate costs of each activity and
finally to present the results in an informative way.
The detailed division of logistics costs both on
the construction site and at the supplier’s is present
in Figure 1. The example illustrates how the activity
and cost analysis results can be used on specific
material supplier level as a basis for improvement.
In this case example, construction firm and
plasterboard supplier wanted to develop their
material deliveries together.
construction site
43%
21%
10%
5%
Storage Transportati Transportati Transportation
on by crane on by hand by wheelbarrow
are: management of the physical flows involved in
the execution (detailed planning of the service flow
and its control mechanisms), interface management
between agents interacting in the construction
process (information and interposition among the
services), and physical management of the
construction site (establishment of the site, internal
movements, storage and prefabrication areas, and
work safety requirements).
3 THE LOGISTICS APPROACH DURING THE
DESIGN PHASE
Novaes (1998) highlights two design concepts:
static – which refers to the design as a product
constituted of graphic and descriptive elements,
ordered and elaborated according to an appropriate
language and with main objective to reach the
requirements of the production phase, and dynamic
– which gives the design a sense of process through
which solutions are identified and adapted, assuming
a technological and managerial character
(production design). This latter concept (dynamic
design) is the focus of our attention here, owing to
its direct relation with the logistics activity in the
construction site. From the beginning the concept of
the design should include the building production
with the integrated operation of all its constituents.
3.1 Production Design
During the phase of construction work, the design’s
performance is largely dependent of the production
team’s interpretation and of the communication level
used. A design that foresees good constructive
techniques is useless if those techniques are not
conveniently intelligibly by the work team
(Nascimento & Formoso, 1998).
The detailed operational planning should be carried
out simultaneously with the product conception. In
this stage it is very important the agents'
participation that more influence, direct or
indirectly, the production phase: designers and
building companies.
In the words of Melhado (1994), production
design is “a set of design elements drawn up
concurrently with the detailing of the execution
design, for use within the scope of on-site production
activities, containing the definitions of disposition
and sequence of on-site activities and work teams,
the use of equipments, and the arrangement and
evolution of on-site work, among other resources
connected with the construction company’s
characteristics and resources”.
According to Ferreira (1998) the production
design should proceed the four great stages of the
production planning : strategic production planning
of the enterprise, production tactical planning,
production operational planning and production
operational planning detail.
3.2 Construction Site Design
The design of the construction site is possibly the
design whose concept most strongly influences
logistics. Several elements and areas must be
considered, such as areas for the storage of
materials, living areas for the workers,
administrative areas and production areas.
To meet legal regulations and to reach the
requirements of a highly demanding and competitive
market, the companies have to design construction
sites according to the current legislation and still
allow improvements in the safety conditions on the
on-site work, rendering the edifice’s production
system more efficient.
The “on-site design is an integral part of the
construction process, responsible for defining the
size, shape and location of both permanent and
temporary work areas and the circulation routes
needed to develop the operations of support and
execution during each phase of construction work,
in an integrated and evolutive manner and in line
with the enterprise’s production design, offering
specific conditions for the workers’ safety, health
and motivation, and for the rational execution of the
services” (Ferreira, 1998).
The Systematic Layout Planning method (SLP)
is a systematization tool for physical arrangement
designs. According to Muther & Wheeler (2000),
layout planning involves three essential conditions:
the relations between the different functions or
activities in the environment, the amount and type of
space for each activity, and the adjustment of these
two factors within the layout itself. The logistics
approach and the development of management tools
are important strategies for the success of the
construction site design.
3.3 Influence of Production Design and Site Design
on Construction Logistics
Oliveira (2001) states that production design and site
design are the instruments that enable the
constructor to plan and develop on-site logistics
efficiently. The information they contain support the
planning, operation and monitoring of the logistic
activities of construction work (supply, storage,
processing and availability of material resources),
indicating when, where and how the production
activities are to be performed and the amount of
materials to be used in each phase, allowing for
labor planning and aiding in the performance of the
information system. These characteristics facilitate
the development of supply logistics activities,
allowing for the early identification of material and
labor requirements, facilitating the planning and
processing of purchased materials and optimizing
the management of transportation to the site.
With regard to on-site logistics, multiple benefits
accrue from the use of these designs, including
visibly improved mapping and, hence, improved
management of the physical flows relating to the
execution of the work, smoothing out of the
problems that usually appear at the interfaces
between the different agents during the productive
process, and a substantial reduction of wastage
resulting from a well organized and signalized
construction site. Finally, a schedule of the activities
and another of materials movements are of
inestimable value for the control of on-site logistic.
A well-implemented and managed logistic
system, based on reliable information supplied by
production and site designs, is expected to result in
reduced rehandling, material shifting and losses,
transforming the site into a creditable calling card,
reducing the risk of accidents, creating greater
worker motivation and providing a substantial
increase in competitiveness.
4 CONSTITUENTS OF THE LOGISTICS PLAN
IN BUILDING CONSTRUCTION
4.1 Logistics Model of Civil Construction
In a study on logistics in construction, Agapiou et al.
(1998) propose a logistics model developed to
improve the aspects of the design and construction
process. The project team identified several criteria
for consideration, including:
 planning of site activities;
 deliveries of material to site;
 number of changes to the detailed design;
 re-work during the construction stages; and
 site work conditions.
According Agapiou et al. (1998), the basic
components of the logistics model consisted of a
number of management’s tools, as it can be seen in
the Table 1.
Because of the repetitiveness of this process and
in order to reduce the managerial efforts of those
responsible for it, it is important to develop tools to
aid in the administration and control of information
transference. The examples proposed are: a schedule
of the materials and components requirements, and a
schedule of materials deliveries to the site. The latter
is based on the logistics concept, knowledge of the
conditions at the site, such as storage space,
production pace and reduction of transportation
flows. In addition to the need of distribution of
efforts among the professionals or workers on the
site, it is advisable that the delivery processes be
well distributed. Figure 2 illustrates a schedule of
materials deliveries to the site.

Table 1 – Components of logistics management model (Agapiou et al., 1998)

Logistics management Description

tools
Materials coordinator Responsible for managing the logistics model during the construction
process
Supply plan Supply plan indicates the proposed delivery dates of units for the whole
project. This plan is specified by the materials coordination in cooperation with
each supplier / subcontractor
Request schedule A detailed version of the supply plan covering a three week period. The
schedule is draw up by the coordinator in cooperation with each subcontractor.
Unloading plans These plans indicated where daily supplies (units) would be delivered on
site
Unit specification A unit is a package of materials required for one working operations within
one craft at one location on the construction site. The whole project is divided
into units. The content of each unit was specified by individual subcontractors.
A unit plan is specified by the materials supplier in conjunction with the
materials coordinator.

ACTIVITIES Delivery Week

material Strategy 16 17 18 19 20 21 22 23
STRUCTURE
steel (ton) month 5000
concrete (m3) week 25 25 25 25
MASONRY
block (unit) two week 10000 10000 10000
cement (bag 50Kg) month 146 525
whitewash (bag 20Kg) month 548 1971
sand (m3) week 30 30 30

Figure 2 - Gantt chart of deliveries of materials to the site


In addition, charts can also be developed to
facilitate comparisons between proposed quotations,
drafts in consonance with the negotiation phase, and
to draw up guidelines for on-site materials storage.
The following guidelines seek to take into
account the importance of the topics discussed here.
4.2 Logistics Plan Guidelines
The logistics approach should be considered
throughout the development of the production cycle
of the enterprise, this is, from its conception to its
execution. All the agents participating in the
enterprise should be integrated so that the logistics
(supply and site) tools and instruments can be
utilized systematically, aiming for synergic gains.
Table 2 presents guidelines and tools for the
preparation and application of logistics plans in
building construction.

Table 2 – Logistics Production Plan Guidelines

Production cycle Guidelines and tools

Design  Logistics guidelines for the conception
 Analysis of technological alternatives
 Definition of the plan of attack for on-site work
 Production design
 Site design
 As-built design
Planning  Gantt physical chart
 Gantt materials consumption chart
 Gantt equipment chart
 Histogram of own labor
 Gantt subcontractor chart
 Gantt chart of implementation of work safety-related preventive measures
Supplies  Materials specifications
 Plans for materials deliveries to the site
 Gantt chart of the startup of the purchasing process (quotations)
 Materials/supplies purchasing rules
 Materials and services supplier qualification
 Guidelines for equipment purchasing or leasing
 Use of indices of material losses and wastage
Execution  Plan for the execution of work on the floors
 Documentation, implementation and maintenance of the information system
 Use of labor and equipment productivity indices
 Work safety and health rules

These tools should be prepared based on the
principles for optimization of construction site
efficiency through objective programming on the
operational level of execution. It is important that
feedback of the process be provided through critical
analyses and reprogramming of the schedules and
logistics plan, according to need. Experiences and
information should be recorded and reused so as to
ensure the continuous improvement of the
construction site management process.
The logistics plans development and implantation
request technical specialization and profissional's
managerial training. It is advisable to assure the
logistics manager's qualifications for not overloading
him with other functions. Moreover, the
organization must have adequate computational
tools for communication and information
processing.
5 CONCLUSIONS
This paper, within its limitations, made an brief
review of the main concepts directly related with the
logistics in the construction. Based on these
concepts, it was made a reflection on its importance
and basic guidelines were proposed for the first steps
on the logistics plans implementation and its
utilization in the building construction
Based on the precepts of the new production
philosophy (lean production), the construction
companies have been showing increasing interest in
the implementation of integrated management tools
of production, and are beginning to realize the
importance of identifying and managing the
different agents that participate in the enterprise.
The adoption of logistics plans may render these
companies more competitive, enabling them to
reduce activities that add no value to the product,
such as stocks, inspections, movement of materials,
etc.
The proposed subdivision between supply
logistics (external) and on-site logistics (internal)
allows for unequivocal identification of the main
logistics-related activities in the building
construction, thus permitting more detailed planning,
in which the anticipation and adoption of modern
instruments for control should be basic premises.
Also highlighted was the need for concern
regarding logistic management starting in the design
phase, including a discussion of the dynamic design
concept and its constituents – production design and
site design. These constituents supply a large part of
the information required to carry out of the logistic
plan and are therefore fundamental elements in the
planning and implementation of such plans.
Application of the logistics guidelines and
instruments cited in this text is directly dependent on
a profound change in the culture and structure of
construction companies, which must perforce begin
to use the lean thinking to guide decisions and to
execute activities at every organizational level, with
special emphasis on top management.
Finally, the development and implementation of
the logistics techniques and instruments in a simple
and direct way are not enough for the logistics plans
success.
Above all, it is necessary the development of a
conscience and real commitment with the lean
thinking on the part of all company's employees.
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flow control process. Construction Management and
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