Systems Approach to EPC Material Procurement Strategy
The criticality of procurement and logistics to the success of Engineering Procurement Construction (EPC) projects cannot be over emphasized, as it has been a large area of opportunities that should be adequately exploited to enhance the overall performance of construction projects. EPC firms, which act as a catalyst for a nation’s economy growth, still suffer from work backlog, and this further hinders them from functioning at their optimum level. The work backlog often arises from delay caused by the stakeholders of the complex EPC system. Furthermore, the delay may arise from design or management decisions. Therefore, there is a need to study the effect of decisions taken by stakeholders to know the behaviour of the material procurement system with a focus on the timely delivery of construction materials to construction sites to ensure a smooth running of the construction process and prevent the work backlog due to shortage of materials on sites, which eventually leads to schedule and cost overrun. The purpose of this study is to develop a novel Systems Dynamics (SD) decision support model to improve the construction material supply chain performance. The model emphasizes the essence of information sharing, collaboration, and trust among stakeholders; as such, the model may help EPC managers take effective decisions in an EPC material procurement system. The context of EPC, which this study is focused is to bulk construction materials. This model will be a particularly useful tool to assist decision makers in evaluating the impact of material shortage and time delay by observing the simulated scenarios accordingly and in developing various effective policies.
Systems dynamics, EPC firm-supplier relationship, Project performance, Construction materials supply chain, Decision support system.
Master of Science (M.Sc.)