PSZ 19:16 (Pind. 1/07)

NOTES : * If the thesis is CONFIDENTAL or RESTRICTED, please attach with the letter from the organization with period and reasons for confidentiality or restriction.

DECLARATION OF THESIS / UNDERGRADUATE PROJECT PAPER AND COPYRIGHT

Author’s full name : Date of birth :

Title :

Academic Session :

I declare that this thesis is classified as : I acknowledged that Universiti Teknologi Malaysia reserves the right as follows :

1. The thesis is the property of Universiti Teknologi Malaysia. 2. The Library of Universiti Teknologi Malaysia has the right to make copies for the

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Certified by :

SIGNATURE SIGNATURE OF SUPERVISOR (NEW IC NO. /PASSPORT NO.) NAME OF SUPERVISOR

Date : Date :

PROF. MADYA DR. ABDUL KADIR MARSONO 41312

OPEN ACCESS I agree that my thesis to be published as online open access (full text)

RESTRICTED (Contains restricted information as specified by the organization where research was done)*

√

2007 / 2008

CONSTRUCTION: CASE STUDY

LOGISTICS FOR SEMI-PRE CAST CONCRETE

SIMULATION OF ALLOCATION ACTIVITIES OF

28-03-1979

WISAM MOHAMAD S. MASOD

CONFIDENTIAL (Contains confidential information under the Official Secret Act 1972)*

November 2007 November 2007

UNIVERSITI TEKNOLOGI MALAYSIA

Status Declaration Letter

Date: November, 2007

Librarian Perpustakaan Sultanah Zanariah UTM, Skudai Johor

Sir,

CLASSIFICATION OF THESIS AS RESTRICTED

SIMULATION OF ALLOCATION ACTIVITIES OF LOGISTICS FOR SEMI-

PRECAST CONCRETE CONSTRUCTION: CASE STUDY WISAM MOHAMAD S. MASOD

Please be informed that the above mentioned thesis entitled “SIMULATION OF ALLOCATION ACTIVITIES OF LOGISTICS FOR SEMI-PRECAST CONCRETE CONSTRUCTION: CASE STUDY” be classified as RESTRICTED for a period of three (3) years from the date of this letter. The reasons for this classification are

(i) COMMERCIALIZATION OF RESEARCH PRODUCT (ii) NEGOTIATION STAGE WITH UTSB SDN. BHD. AS BUSINESS

CONSULTANT (iii) NICHE IBS PRODUCT COMPONENTS ARE WAITING TO BE

MANUFACTURED

Thank you.

Sincerely yours,

“We hereby declare that I have read this project and in my opinion this project is

sufficient in terms of scope and quality for the award of the degree of Master of

Science (Construction Management) by taught course.”

Signature : …………………………………….

Name of Supervisor I : ASSOC. PROF. DR. ABDUL KADIR

MARSONO

Date : November 2007

Signature : ………………………………………

Name of Supervisor II : DR. MASINE MD TAP

Date : November 2007

i

SIMULATION OF ALLOCATION ACTIVITIES OF LOGISTICS FOR SEMI-

PRECAST CONCRETE CONSTRUCTION: CASE STUDY

WISAM MOHAMAD S. MASOD

A project report submitted in partial fulfillment of the

requirements for the award of the Degree of

Master of Science (Construction Management)

Faculty of Civil Engineering

Universiti Teknologi Malaysia

November 2007

ii

I declare that this thesis entitled “Simulation of Allocation Activities of Logistics for

Semi-Precast Concrete Construction: Case Study” is the result of my own research

except as cited in the references. The thesis has not been accepted for any degree and

is not currently submitted in candidature of any other degree.

Signature : ………………………………

Name : WISAM MOHAMAD S. MASOD

Date : 23 November 2007

iii

Especially to my beloved family

iv

ACKNOWLEDGEMENT

The author wishes to express his sincere appreciation to all who have helped

directly or indirectly in his Masters Project research work. The first gratitude is to

Allah for his prosperity and guidance. A big thank is to my main thesis supervisor,

Associate Professor Dr. Abdul Kadir Bin Marsono, for his passionate assistance, and

concern. With his invaluable advices and superb directions, the author has

successfully completed his Masters Project. It is indeed a true honor and privilege for

being able to work under the supervision of such a dedicated and enthusiastic

lecturer.

Special thankful is due to my co-supervisor Associate Professor Dr. Masine

Md Tap for her close guidance and assistance throughout the process of carrying out

the research work. Besides, the author would like to thank all the participants of

Taman Ehsan Jaya project for their helpful and concern. A particular grateful are due

to project manager Calvin K. C. Kok and site supervisor Nor Yazid Bin A. Manan

for their unlimited helpful, support, and assistance.

Last but not least, the author would like to express his heartfelt gratitude to

his family members and friends for their utmost support and motivation throughout

this research work. Thanks to all of them.

v

ABSTRACT

The thesis presents a 100 units multi-storey case study endeavor to simulation

logistic allocation of activity modeling. It also reviews, assess, and improve the

current construction practices in Malaysia. First, building the implementation process

diagram for a model of simulation is presented for determining a good and better

allocation of activity. Secondly, alternative models for implementation processes and

for monitor and control the logistic processes are presented with three missions of

government regulation process, site management process, and improvement of IBS

process. Finally, a real case study is presented on semi-precast concrete project, on

the time completion for each activity that needed to finish the overall project. It will

cover financial status, project management consultant, consultant and contractors,

local authority, civil engineering works, manufacturing of components, transportation

of components, assembly of components and finishing. For the case study, the data

were obtained in two stages: (i) during the construction period and (ii) during the

interview with participants. During the construction period, data were collected in

collaboration with quantity surveyor, site engineer, and site supervisor. During the

interview with participants, the interview was conducted with project manager walk-

in interviews. The importance of construction logistic in a developing country was

clarified as time-based analysis, in which the completion time of semi-precast

concrete project in the overall duration to client were calculated separately by using

Witness (2001) software, as was an optimization to activity by simulation of the

processes .

vi

ABSTRAK

Tesis ini adalah berkaitan penggunaan simulasi model aktiviti logistik

dijalankan ke atas satu kajian kes pembinaan 100 unit bangunan bertingkat bagi

tujuan semakan, penilaian dan penambahbaikan amalan pembinaan di Malaysia.

Pertama, carta proses pelaksanaan satu model simulasi dibangunkan untuk

menentukan kebaikan sesuatu aktiviti. Kedua, model alternatif untuk proses

pelaksanaan dan pemantauan serta penyeliaan proses logistik ditunjukkan untuk

proses peraturan kerajaan, proses pengurusan tapak dan proses pembaikan IBS.

Akhir sekali, kajian kes sebenar dibuat untuk projek konkrit separa pra-tuang, ke atas

masa siap bagi sesuatu aktiviti sehingga meniapkan keseluruhan projek.termasuk

status kwangan, perunding pengurusan projek, perunding dan pemborong, pihak

berkuasa tempatan, kerja-kerja kejuruteraan awam, pembuatan komponen,

pengangkutan komponen, pemasangan komponen dan kemasan. Bagi kajian kes ini,

data diperolehi dalam 2 peringkat iaitu (i) semasa jangka waktu pembinaan dan (ii)

semasa sesi temuduga. Semasa jangka waktu pembinaan, data dikumpulkan dengan

kerjasama juruukur bahan, jurutera tapak dan penyelia tapak semntara sesi temuduga

pula dijalankan bersama dengan pengurus projek di tapak pembinaan. Kepentingan

logistik pembinaan bagi negara membangun telah dikenal pasti berdasaran analisis

time based di mana masa siap projek separa pra-tuang konkrit dalam jangka masa

keseluruhan kepada pengguna dihitung berasingan menggunakan perisian (Witness

2001) untuk mengoptima aktiviti melalui proses simulasi.

vii

TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE

TITLE i

DECLARATION ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABTRACT v

ABSTRAK vi

CHAPTER 1 INTRODUCTION 1 1.1 Introduction 1

1.2 Problem Statement 4

1.3 Aim and Objectives of Study 5

1.4 Scope of Study 6

1.5 Significance of Study 8

CHAPTER 2 LITERATURE REVIEW 9

6.1 Introduction 9

6.2 History of IBS Construction 10

viii

6.3 Industrialized Building System (IBS) 11

2.3.1 Introduction of IBS in Malaysia 11

2.3.2 Why IBS in Malaysia 13

2.3.3 Towards Global Competitiveness 14

2.3.4 Common Types of IBS Systems 15

2.3.5 Classification of Industrialized Building

Methods 16

2.3.6 Principles of IBS Systems 19

2.3.7 Benefits of IBS 19

6.4 Supply Chain Management 20

2.4.1 Introduction 20

2.4.2 Supply Chain Management in

Manufacturing 21

2.4.3 Supply Chain Management in

Construction 22

2.4.4 Analysis Of The Supply Chain

Management 23

2.4.5 Logistics and Supply Chains in

Construction 24

6.5 Introducing IBS 26

2.5.1 Background of IBS Construction

Logistics 26

2.5.2 Points to Logistics being poor in the

Construction Industry 27

2.5.3 Consequences of poor Logistics 28

2.5.4 Potential benefits by improving

Logistics 29

2.5.5 Preventing the Industry by Addressing

Logistics 30

6.6 The Functions of Logistics 31

6.7 Programme for Introducing Logistics 32

2.7.1 Local Authority 32

2.7.2 Financial Status 33

2.7.3 Project Management Consultant 34

ix

2.7.4 Manufacturing of Components 35

2.7.5 Transportation of Components 35

2.7.6 Civil Engineering Works 36

2.7.7 Contractors\Consultants 36

2.7.8 Assembly of Components 37

6.8 Case Study 38

6.9 Learning from other industries 39

6.10 Simulation 39

2.10.1 Definition of Simulation 39

2.10.2 Simulation Advantages 40

2.10.3 Simulation Disadvantages 44

6.11 Witness 2001 Software 45

2.11.1 Steps for Simulation Model Study in

Witness 2001 45

CHAPTER 3 METHODOLOGY 50

3.1 Introduction 50

3.2 Literature Review 52

3.3 Selecting Attributes of Logistics Process 52

3.4 Forming Systematic Workflow Processes 54

3.5 Data Collection 54

3.6 Modeling and Simulation 55

3.7 Data Analysis and Discussion 55

x

CHAPTER 4 DATA COLLECTION 56

4.1 Introduction 56

4.2 Data Collection 57

4.3 Case Study 58

4.4 Semi-Pre Cast Concrete Construction Project 59

4.4.1 Financial Status Activity 60

4.4.2 Project Management Consultant Activity 60

4.4.3 Consultants and Contractors Activity 61

4.4.4 Local Authority Activity 62

4.4.5 Civil Engineering Works Activity 62

4.4.6 Manufacturing of Components Activity 64

4.4.7 Transport of Components Activity 65

4.4.8 Assembly of Components Activity 67

4.4.9 Finishes Activity 68

4.5 Logistic Process 71

4.5.1 Simulation Framework 71

4.5.2 Alternative Processes Framework 72

4.6 Witness 2001 Software 74

4.6.1 Using Witness Software Data 75

4.6.2 Benefits of Simulation 76

CHAPTER 5 RESULTS AND DISCUSSION 77

5.1 Introduction 77

5.2 Simulation Models For the Process of the Project 78

5.2.1 Simulation Model For Government

Normal Step Process 78

5.2.2 Simulation Model For Site

Management Process 80

5.2.3 Simulation Model For An Improvement

IBS Process 81

xi

5.3 82Analyzing Period Of Activities

overnment Process Period

Analyzing Site Management Process

t

HAPTER 6 CONCLUSION AND RECOMMENDATIONS 103

s 105

REFERE

APPENDIXES

Appendix A 112

Appendix B

5.3.1 Analyzing G 83

5.3.2

Period 88

5.3.3 Analyzing Improvement IBS Projec

Process Period 94

C

6.1 Conclusion 103

6.2 Recommendation

NCES 107

112

113

xii

LIST OF TABLES

TABLE NO. TITLE PAGE

4.1 Financial status period 60

4.2 Project management consultant period 61

4.3 Consultants and contractors period 61

4.4 Local authority period 62

4.5 Civil engineering works period 63

4.6 Manufacturing of components period 64

4.7 Transportation of components period 65

4.8 Assembly of components period 67

4.9 Finishing period 69

4.10 The overall time activities period 70

5.1 Models outputs for project completion 82

5.2 Reducing financial status time at first process 83

5.3 Reducing project management consultants time at first

process 84

5.4 Reducing consultants and contractors time at first process 85

xiii

5.5 Reducing civil engineering works time at first process 86

5.6 Reducing manufacturing of components at first process 87

5.7 Reducing financial status time at second process 89

5.8 Reducing project management consultants time at second

process 89

5.9 Reducing consultants and contractors time at second

process 90

5.10 Reducing civil engineering works time at second process 91 5.11 Reducing manufacturing of components time at second

process 92

5.12 Reducing transportation of components time at second

process 93

5.13 Reducing financial status time at third process 94

5.14 Reducing project management consultants time at third

process 95

5.15 Reducing consultants and contractors time at third process 96

5.16 Reducing civil engineering works time at third process 97

5.17 Reducing manufacturing of components time at third

process 98

5.18 Reducing transportation of components time at third

process 99

5.19 Reducing assembly of components time at third process 100

xiv

LIST OF FIGURES

FIGURE NO. TITLE PAGE

1.1 Main area of the research project 5

1.2 Research flow 8

2.1 Percentage of completed projects using IBS (1998-2002) 12

2.2 Generic configuration of a supply chain in manufacturing. 21

2.3 Generic configuration of a traditional supply chain in

residential building 22

2.4 Construction logistics tasks 31

2.5 Steps in a simulation study 46

3.1 Methodology flowchart 51

3.2 Organization of logistic process for (Witness 2001)

simulation diagram. 53

3.3 Implementation (Witness 2001) diagram 54

4.1 Model for semi-pre cast concrete houses 59

4.2 Civil engineering work procedure 63

4.3 Manufacturing of components procedure 65

xv

4.4 Steps of transportation of components 66

4.5 Steps of assembly of components 68

4.6 Finishing procedure 69

4.7 Final implementation (Witness 2001) diagram 72

4.8 Serial simulations for normal working process

(Government regulation) 73

4.9 Serial simulations for site management process 73

4.10 Serial simulations for improvement IBS process 73

4.11 The start up windows interface of Witness 2001software 74

4.12 Elements used to build the models 75

5.1 Government regulations (normal working process) 79

5.2 Site management process 80

5.3 Improvement IBS project process 81

5.4 Financial status for first process 84

5.5 Project management consultants for first process 85

5.6 Consultants and contractors for first process 86

5.7 Civil engineering works for first process 87

5.8 Manufacturing of components for first process 88

5.9 Financial status for second process 89

5.10 Project management consultants for second process 90

5.11 Consultants and contractors for second process 91

xvi

5.12 Civil engineering works for second process 92

5.13 Manufacturing of components for second process 93

5.14 Transportation of components for second process 94 5.15 Financial status for third process 95

5.16 Project management consultants for third process 96

5.17 Consultants and contractors for third process 97

5.18 Civil engineering works for third process 98

5.19 Manufacturing of components for third process 99

5.20 Transportation of component for third process 100

5.21 Assemblies of components for third process 101

xvii

LIST OF APPENDIXES

APPENDIX TITLE PAGE

A Progress report of the actual project 112

B Construction draws of the actual project 113

1

CHAPTER 1

INTRODUCTION

1.1 Introduction

All organisations move materials. Manufacturers build factories that collect raw

materials from suppliers and deliver finished goods to customers; retail shops have

regular deliveries from wholesalers; a television news service collects reports from

around the world and delivers them to viewers; most of us live in towns and cities and

eat food brought in from the country; when you order a book or DVD from a website, a

courier delivers it to your door. Every time you buy, rent, lease, hire, or borrow anything

at all, someone has to make sure that all the parts are brought together and delivered to

your door. Logistics is the function that is responsible for this movement. It is

responsible for the transport and storage of materials on their journey between suppliers

and customers (Donald Waters, 2003).

Materials supply is an important element of operation of construction enterprises

and thus a factor affecting the quality of construction projects. The level of materials

costs reaches up to 70% of total construction cost estimations, therefore any actions

towards rationalization of size, structure and organization of material consumption,

delivery, and planning are important in terms of project efficiency and require proper

management.

2

Many industries attempt to integrate logistic process into logistic chains of

suppliers and customers, starting with obtaining raw material, through manufacturing,

distribution and final sale and service to the end users. Logistic processes, being crucial

for successful completion of the project but in fact auxiliary, are often entrusted external

professionals specialized in logistic services, and this tendency is also observed in

construction (Baumgartner, 1998).

In the field of construction, supply (ordering, transport and storage) and

production dominate the logistic processes (Serra, 2003). Supply and production are

often difficult to separate due not only to organisational but also technological reasons

(considering as erection of in-situ concrete structures and ready-mixed concrete

deliveries). Traditionally, contractors taking part in a project were responsible for their

individual supply chains to provide materials and services required within their scope of

works. At the present time of well-developed market for building materials and

services, centralising and outsourcing the project supply logistics is considered to be a

more efficient solution facilitating the project control.

A variety of systems and strategies of logistics are used by enterprises. The

choice of a logistic model implemented in a project should be based on careful analysis

of the supplier's market limitations, structure of material consumption, accuracy of

consumption planning and logistic cost minimisation. Also the scope and complexity of

the project and its procurement system have a considerable impact on the logistic

arrangements. The construction procurement systems evolve and "traditional" systems

such as general contracting are often replaced by project manager systems, where the

manager acting on behalf of the employer decides on designers, contractors, and

supplier's selection (Tenah, 2003). Along with procurement system development, the

constellation of decision-makers is changes. For example, the choice of materials, their

manufacturers, or even suppliers belongs no longer to the designer or the contractor,

3

but to the employer or his consultants or project managers. The latter decide also on the

logistic system on the building site.

Deciding on project logistics requires a wide knowledge of the building materials

market, financing, managing contractors' approaches to supply, and a deep under-

standing of the logistics impact on the project efficiency in terms of cost, quality, and

time. It is of great importance to be aware of logistic costs and their relationship to the

model of logistics and assumed decision variables such as batch size, place, and time of

the delivery. These depend on current market conditions such as cost of capital, material

and transport prices, storage costs and possibilities, safety and environment protection

law (Sobotka, 2000).

The study discusses a number of aspects of logistics with regard to a

construction process as an organisation and as a participant in a construction project. It

is based on the results of recent research on patterns of development of logistic

systems in Polish construction enterprises. The enclosed calculations of logistics

expenses present the impact of logistic system on costs. Two problems have been

analysed: the first consists in the method of introduce logistic process from the total

time of a project execution and in determining or estimating their best time according

to the deployment logistic model. The second problem is the choice of supply system

for all parts such as local authority, financial statue, project management consultant,

manufacturing of component, civil engineering, transportation of component,

contractor/consultant, and assembly of component. Conclusions of the analysis of the

above problems allow substantiating the integration of logistic tasks under a logistics

management unit within the project organisation structure in the form of an internal or

external logistic organisation. The responsibility of this organisation would be planning

and co-ordination of resources supply processes at each part of the project, from the

initial planning and design to execution and commissioning. The scope of

responsibility of such an organisation may be wider and include management of flows

of resources other than materials (equipment, staff and workforce, finance,

information), and not only supply but also production.

4

Actually, the applications of simulation in construction logistics and

industrialized building system are increasing rapidly. Consequently, simulation is a

unique ability to accurately predict the performance of complex processes at the IBS

projects which makes it ideally suited for systems planning. In addition, simulation is

emerging as an important developed tool to enhance the logistic process performance of

IBS. In overall, a highly processing planning and an accurate logistic of IBS construction

process are required to enrich the logistic activities of industrialized building system

component.

1.2 Problem Statement

The supply chain of Industrialized Building System at the concrete construction

involves many processes. One of the most important processes of IBS is the logistic

process, especially if we talk about the logistics management, supply chain management,

small limited availability of component, standardization for IBS construction such as

(sizing, project management, policy and regulation) and forms on logistic deployment

management. In fact, this process is considered as one of the critical effecting factors in

term of time, resource, and operation.

Strategic forum for construction (SFFC) in September 2002 highlighted that a

considerable amount of waste is incurred in the industry as a result of poor logistics. The

requirements of providing the appropriate logistic process for every project enforced

multiple efforts to cover that information flow and to enhance once again the workability

of IBS projects. It is essential to reduce time, plan the resources and the activities of the

whole processes.

5

The need to adopt an optimized model solution is essential to enhance the

optimization, reduces the time, and eliminates the complex routine involved in the

process. So there is a lot of opportunity for change. Construction has been slower than

other industries to realise the benefits that the application of good logistics can provide.

1.3 Aim and Objectives of Study

An overall goal of this study is to meet the demand for Industrialised building

construction component by ensuring a good balance between quality, economic and time

needs. As a result of the mentioned background the capabilities of precast concrete

component with construction building system for logistic process will be explained. The

study concerns three main areas, illustrated in Figure1.1, where prefabricated precast

concrete component, logistics supply chain management as a managerial tool and

simulation software (Witness2001). However, in this study project these subjects have

been put together in order to find a common denominator of the three subjects. The

research focus is to find and simulate the potential both for this building system and the

supply chain management tool in order to introduce the construction process for on

order, demand, and delivery. One way of doing this is to use the Witness2001 process in

combination with the industrialized building system.

6

Case Study on Semi-Precast

Concrete Project

Simulation Software

(Witness 2000)

Logistics Process

Figure 1.1 Main area of the research project

The industrialized building construction industry has for many years maintained

the time-tested but labour intensive traditional approach in construction and investing

little in research and development. So the new technological advances shall play a major

role in changing the competitive work environment in the construction industry.

Concurrently the demand for production and quality increases, the industrialized

construction industry must focus itself in innovation and be supportive of new

technological techniques in construction.

The objectives of this study by using simulation model (Witness 2001) are as

follows:

7

• To develop an action plan that highlights the steps that needs to be undertaken by

the different parts of the industry.

• To identify the key issues that needs to be addressed to improve logistics in the

construction industry.

• To simulate and optimize deployment model for industrialized building system

house of 100 unit houses project for certain month’s completion time.

• To determine catalogue of strategies for activity deployment of IBS house.

1.4 Scope of Study

The scope of this study is focused to selecting and forming the systematic logistic

workflow process in overall construction project process in IBS projects. The purpose of

this study is to determine whether the ways in which logistics management can provide

value for construction process better, faster, and cheaper. The study will also seek

criterion for a good logistics vision statement is that it should provide the road map for

how these two goals are to be achieved especially in reducing the overall construction

period as the follow:

• Examine the logistic process in the IBS construction projects that may play a role

in good time achieving at construction projects.

• Explore the problems that are encountered in the simulation design, production,

and erection processes in IBS system.

• To introduce the logistics model with influence of time factor on simulation.

• Analyze the deployment process among the parties involved in project

simulation.

In general, this study was done in three stages, namely:

8

• Literary study on IBS and strategic forum for construction logistics.

• Modeling and simulation for achieving a good overall IBS project period as well

as the attributes of process, time needed and Alternative models for organization

process.

• Data analysis of the results and conclusions.

Making references to relevant books, journals and other sources, as well as

conducting literature study on logistics of IBS concrete construction and its applications

were performed in the first stage of the research. The second stage involved a modeling

and simulation using the (Witness, 2001) technology. The implementation like this

technology allows the users to monitor and reduction on time and cost for IBS

construction. The third stage of the study was the analysis of the results. The final stage

ends with the writing of findings and conclusions, Figure 1.2.

Literary study on IBS project

Study in logistic process to be used Selecting attributes

of process

Forming systematic workflow processes

Data collection

Simulation & Optimisation

Data analysis by Witness 2001

Result and discussion

Write technical paper and report.

Figure 1.2 Research flow

9

1.5 Significance of Study

• Proposed simulation model in this study can be applied in the planning of IBS

projects especially the logistic process of organization work flow and the

execution at the IBS construction projects.

• Propose scheme production of catalog system for IBS such as (specification and

standardization).

• Propose alternative models for organization and to monitor and control the

process.

• Optimum work flow process in achieving a good overall IBS project period can

be calculated from the proposed model.