Cost estimation accuracy in supply chain design

2018 ◽  
Vol 48 (10) ◽  
pp. 995-1019
Author(s):  
Jesper Normann Asmussen ◽  
Jesper Kristensen ◽  
Brian Vejrum Wæhrens
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Cost Estimation ◽  
Supply Chain Design ◽  
Estimation Accuracy ◽  
Estimation Errors ◽  
Content Type ◽  
Longitudinal Data Collection ◽  
Embedded Case Study

PurposeThe purpose of this paper is to investigate how management attention and supply chain complexity affect the decision-making process and cost estimation accuracy of supply chain design (SCD) decisions.Design/methodology/approachThe research follows an embedded case study design. Through the lens of the behavioural theory of the firm, the SCD decision process and realised outcomes are investigated through longitudinal data collection across ten embedded cases with varying degrees of supply chain decision-making complexity and management attention.FindingsThe findings suggest that as supply chain decision-making complexity increases, cost estimation accuracy decreases. The extent to which supply chain decision-making complexity is readily recognised influences the selection of strategies for information search and analysis and, thus, impacts resulting cost estimation errors. The paper further shows the importance of management attention for cost estimation accuracy, especially management attention based on conflicting goals induce behaviours that improve estimation ability.Research limitations/implicationsA framework proposing a balance between supply chain decision-making complexity and management attention in SCD decisions is proposed. However, as an embedded case study the research would benefit from replication to externally validate results.Originality/valueThe method used in this study can identify how supply chain complexity is related to cost estimation errors and how management attention is associated with behaviours that improve cost estimation accuracy, indicating the importance of management attention in complex supply chain decision-making.

scholarly journals Exploring future cityscapes through urban logistics prototyping: a technical viewpoint

2015 ◽  
Vol 20 (3) ◽  
pp. 341-352 ◽  
Author(s):  
Gary Graham ◽  
Rashid Mehmood ◽  
Eve Coles
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Mixed Method ◽  
City Planning ◽  
Supply Chain Design ◽  
Theory Building ◽  
Content Type ◽  
Method Approach ◽  
Unique Individual

Purpose – The purpose of this technical viewpoint is to provide a commentary of how we went about using logistics prototyping as a method to engage citizens, science fiction (SF) writers and small- to medium- sized enterprises (SME’s). Six urban logistic prototypes built on the themes of future cities, community resilience and urban supply chain management (SCM) are summarized, together with details of the data collection procedure and the methodological challenges encountered. Our investigation aimed to explore the potential of logistics prototyping to develop “user-driven” and “SME” approaches to future city design and urban supply chain decision-making. Design/methodology/approach – This Boston field experiment was a case study investigation conducted between May and August 2013. Qualitative data was collected using a “mixed-method” approach combining together focus groups (MIT faculty), scenarios, prototyping workshops, interviews and document analysis. These story-creators could use the prototype method as a way of testing their hypotheses, theories and constrained speculations with regard to specified future city and urban supply chain scenarios. Findings – This viewpoint suggests that the prototyping method allows for unique individual perspectives on future city planning and urban supply chain design. This work also attempts to demonstrate that prototyping can create sufficiently cogent environments for future city and urban SCM theories to be both detected and analysed therein. Although this is an experimental field of the SCM theory building, more conventional theories could also be “tested” in the same manner. Research limitations/implications – By embedding logistics prototyping within a mixed method approach, we might be criticized as constraining its capability to map out the future – that its potential to be flexible and imaginative are held back by the equal weighting given to the more conventional component. In basing our case study within one city then this might be seen as limiting the complexity of the empirical context – however, the situation within different cities is inherently complex. Case studies also attract criticism on the grounds of not being representative; in this situation, they might be criticized as imperfect indicators of what transpires in other situations. However, this technical viewpoint suggests that in spite of its limitations, prototyping facilitates an imaginative and creative approach to theory generation and concept building. Practical implications – The methodology allows everyday citizens and SME’s to develop user-driven foresight and planning scenarios with city strategists’ and urban logistic designers. It facilitates much broader stakeholder involvement in city and urban supply chain policymaking, than current “quantitative” approaches. Social implications – Logistics fiction prototyping provides a democratic approach to future city planning and urban supply chain design. It involves collectively imagining socio-technical futures and second-order sociological effects through the writing of SF narratives or building “design fictions”. Originality/value – Decision-making in future cities and urban SCM is often a notable challenge, balancing the varying needs and claims of multiple stakeholders, while negotiating an acceptable trade-off between their competing claims. Engagement with stakeholders and active encouragement of stakeholder participation in the supply chain aspects of future cities is increasingly a feature of twenty-first century social decision-making. This viewpoint suggests that the prototyping method allows for unique individual perspectives on future city planning and urban supply chain design. This work also attempts to demonstrate that prototyping can create sufficiently cogent environments for future city and the urban SCM theories to be both detected and analysed therein. Although this is an experimental field of SCM theory building, more conventional theories could also be “tested” in the same manner.

Digitizing the field: designing ERP systems for Triple-A humanitarian supply chains

2020 ◽  
Vol 10 (2) ◽  
pp. 231-260
Author(s):  
Ioanna Falagara Sigala ◽  
William J. Kettinger ◽  
Tina Wakolbinger
Keyword(s):  
Supply Chain ◽  
Level Structure ◽  
Resource Planning ◽  
Design Principles ◽  
Erp Systems ◽  
Content Type ◽  
Humanitarian Operations ◽  
Humanitarian Organizations ◽  
Embedded Case Study

PurposeThe purpose of this study is to explore what design principles need to be considered in Enterprise Resource Planning (ERP) systems for humanitarian organizations (HOs) to enable agile, adaptive and aligned (Triple-A) humanitarian supply chain capabilities and digitize humanitarian operations.Design/methodology/approachThis study follows an embedded case study approach with a humanitarian medical relief organization, Médecins Sans Frontières (MSF), which engaged in a multiyear ERP design at its humanitarian field missions.FindingsThis research shows that ERP systems for humanitarian organizations should be designed as unique systems addressing humanitarian organizations' challenges and unique missions, their value generation processes, and resource base in an effort to improve organizational performance. This study presents 12 general design principles that are unique for humanitarian organizations. These design principles provide a high-level structure of guidance under which specific requirements can be further defined and engineered to achieve success.Research limitations/implicationsThe results of this study are based on a single case study limiting generalizability. However, the case study was analyzed and presented as an embedded case study with five autonomous subunits using different business processes and following different adoption and implementation approaches. Therefore, the findings are derived based on considerable variance reflective of humanitarian organizations beyond MSF.Practical implicationsThis study recognizes that HOs have unique routines that standard commercial ERP packages do not address easily at the field level. The primary contribution of this research is a set of design principles that consider these unique routines and guide ERP development in practice. National and international HOs that are planning to implement information systems, private companies that are trading partners of HOs as well as vendors of ERP systems that are looking for new opportunities would all benefit from this research.Originality/valueThis study fills the gap in the humanitarian literature regarding the design of ERP systems for humanitarian organizations that enable Triple–A supply chain capabilities and it advances the knowledge of the challenges of ERP design by HOs in the context of humanitarian operations.

scholarly journals Collaborative and sustainable supply chain practices: a case study

2019 ◽  
Vol 14 (1) ◽  
pp. 3-21
Author(s):  
Rubén Medina-Serrano ◽  
Reyes Gonzalez ◽  
Jose Gasco ◽  
Juan Llopis
Keyword(s):  
Supply Chain ◽  
Dynamic Capabilities ◽  
Supply Chain Design ◽  
Sustainable Supply Chain ◽  
Content Type ◽  
Sustainable Procurement ◽  
Consistent Manner ◽  
Management Approaches ◽  
Corporate Social

Purpose The purpose of this paper is to explore sustainability and collaboration in supply chain (SC) management designs and to develop a sustainable supply chain design (SCD) model. Design/methodology/approach First, a literature review of the principal theories and SC management approaches is discussed. Second, the development of a sustainable SCD model is described and explained. Third, the results and the operationalization of the model, which incorporates sustainable procurement elements based on the results of interviews from a case study, are outlined. Findings A framework is proposed to provide managers, practitioners and academics with a practical solution to make sustainable SC decisions in a more structured and consistent manner. Originality/value The paper presents a currently discussed problem about the design of differentiated supply chains to avoid or offset the effects of allocation issues in the electronic marketplace. Although past literature reviews provide valuable results, they were based upon the assessment of supply chain decisions failing to consider the sustainable corporate social responsibility and the interaction criteria. The findings from this study highlight the importance of addressing supply chain decisions in a structured manner and prioritize the development of dynamic capabilities to improve the firm’s ability to reconfigure internal and external competences to address rapidly changing environments and reinforce a collaborative SC management system with third parties.

scholarly journals In pursuit of supply chain fit

2019 ◽  
Vol 30 (3) ◽  
pp. 821-844 ◽  
Author(s):  
Yasmine Sabri
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Firm Performance ◽  
Conceptual Framework ◽  
Organisational Structure ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Corporate Groups ◽  
The Relationship

Purpose The purpose of this paper is to develop exploratory propositions and a conceptual framework on the interaction between organisational structure (decision-making centralisation and internal coordination) and the relationship between supply chain fit and firm performance. Design/methodology/approach Through a case study, two corporate groups with distinctive organisational structures were examined; both are undergoing a critical moment of changes to their top management and are reshaping their corporate and supply chain strategies. Data on decision-making centralisation, internal coordination mechanisms, supply, demand and innovation uncertainties, and supply chain strategies were collected from key respondents. Findings The analysis conducted suggests the need to consider the joint interaction between organisational structure and supply chain fit in offsetting the implications of a potential misfit on firm performance. Furthermore, the context sensitivity of a supply chain is often overlooked, hence simply modifying supply chain strategy does not necessarily lead to a variation in firm performance. Practical implications This research is of particular importance to most organisations in the testing times of uncertainty in the global landscape. It guides supply chain practitioners to better understand which elements of the organisational structure interact with the uncertainty of supply, demand and innovation. Originality/value This paper is one of the first to investigate the interaction between elements of organisational structure and supply chain fit and identify decision-making centralisation and coordination as the internal uncertainty factors that are most relevant to supply chain fit research. A conceptual framework has been built for future testing, in which the organisational structure moderates the relationship between supply chain fit and firm performance.

Digitalization opportunities for the procurement function: pathways to maturity

2020 ◽  
Vol 40 (11) ◽  
pp. 1685-1693
Author(s):  
Zahra Seyedghorban ◽  
Danny Samson ◽  
Hossein Tahernejad
Keyword(s):  
Supply Chain ◽  
Well Being ◽  
Supply Chain Design ◽  
Strategic Partner ◽  
Content Type ◽  
Study Approach ◽  
Modern Technologies ◽  
Initial Research

PurposeThis research aims at investigating the common practical problem of how procurement can be transformed from tactical and administrative to becoming an organizational strategic partner and indeed a competitive weapon, using modern technologies in particular. We investigated how procurement can be reinvented, from being digitized to digitalized to digitally integrated, ultimately contributing in business terms beyond supply chain effectiveness but also to profit generation.Design/methodology/approachA case study approach was designed to investigate three firms, each at very different stages of digital maturity in procurement. Interviews with managers, investigation of processes and documentary materials and in-depth follow-up discussions were conducted.FindingsThe iterative digitalization transformation discovered encompasses complexities rooted in organizational structure, supply chain design and the management of the technology for employees' uptake. There are both operations and strategy implications as a result. This initial research phase led to mapping a model of digital maturity as well as identifying its underlying constructs.Originality/valueThis research discovered that the implementation of digital technologies can lead the procurement function of the supply chain to completely grow out of its administrative and clerical shell into a strategic, consultative, value-adding and potentially revenue-generating function, thereby contributing to the well-being of not only the supply chain but also the entire organization.

Estimation of construction project building cost by back-propagation neural network

2019 ◽  
Vol 18 (3) ◽  
pp. 601-609
Author(s):  
Qinghua Jiang
Keyword(s):  
Neural Network ◽  
Decision Making ◽  
Bp Neural Network ◽  
Cost Estimation ◽  
Back Propagation ◽  
Estimation Accuracy ◽  
Average Error ◽  
Estimation Model ◽  
Content Type ◽  
Building Cost

Purpose Building cost is an important part of construction projects, and its correct estimation has important guiding significance for the follow-up decision-making of construction units. Design/methodology/approach This study focused on the application of back-propagation (BP) neural network in the estimation of building cost. First, the influencing factors of building cost were analyzed. Six factors were selected as input of the estimation model. Then, a BP neural network estimation model was established and trained by ten samples. Findings According to the experimental results, it was found that the estimation model converged at about 85 times; compared with radial basis function (RBF), the estimation accuracy of the model was higher, and the average error was 5.54 per cent, showing a good reliability in cost estimation. Originality/value The results of this study provide a reliable basis for investment decision-making in the construction industry and also contribute to the further application of BP neural network in cost estimation.

scholarly journals Co-innovation toolbox for demand-supply chain synchronisation

2019 ◽  
Vol 39 (4) ◽  
pp. 573-593 ◽  
Author(s):  
Erno Salmela ◽  
Janne Huiskonen
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Abductive Reasoning ◽  
Demand And Supply ◽  
Content Type ◽  
Uncertain Environment ◽  
Starting Point ◽  
Common Understanding ◽  
Supply Information

Purpose The purpose of this paper is to promote decision-making structures between the customer and the supplier in a highly uncertain environment. This phenomenon of demand-supply chain synchronisation includes sharing of high-quality and timely demand and supply information in order to improve the quality and speed of decision-making. Design/methodology/approach The study was carried out as an abductive case study, which started from empirical observations that did not match the prior theoretical framework. Through abductive reasoning and empirical experiments, the prior framework was extended to a new synchronisation model and tools that better accommodate the observed need. Findings A new co-innovation toolbox was developed to create common understanding of demand-supply chain synchronisation between the customer and the supplier. The toolbox includes Demand Visibility Point-Demand Penetration Point, Supply Visibility Point–Supply Penetration Point and Integrative Synchronisation tools. Research limitations/implications The study extends the current models and tools of demand-supply chain synchronisation. With the new toolbox, the development needs of decision-making structures can be identified more comprehensively than with the current tools. Practical implications The developed visual toolbox helps partners create a common understanding of problems and development possibilities in demand-supply chain synchronisation in a highly uncertain environment. Common understanding is a starting point for changing decision-making structures to improve the overall performance of a demand-supply chain. Originality/value The new toolbox is both more comprehensive and more detailed than the previous tools.

A case study for predicting the success possibility of supply chain practices implementation using AHP approach

2016 ◽  
Vol 31 (2) ◽  
pp. 137-151 ◽  
Author(s):  
Shrikant Gorane ◽  
Ravi Kant
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Large Scale ◽  
Methodological Approach ◽  
Essential Elements ◽  
Future Research ◽  
Decision Making Process ◽  
Content Type ◽  
Priority Weights

Purpose – The purpose of this paper is to predict the success possibility of supply chain practices (SCPs) implementation based on ten selected SCPs using the analytic hierarchy process (AHP). Design/methodology/approach – A case study was conducted, and for the same, data were collected from two organizations. The data collected from both the organizations were analyzed using AHP. The pair-wise comparisons of SCPs (usually, alternatives and attributes) are established using a scale indicating the strength with which one SCP dominates another with respect to higher-level SCPs. This scaling process then translated into priority weights. Once the priority weights of the elements/determinants of the module have been calculated, the presence of the corresponding element in the organization was evaluated. An evaluation rating of these elements multiplied by the established priority weights have determined the prediction weight for each SCP. Findings – The application of this procedure is described for the institutionalization module and can be similarly extended to the other SCPs/SCM implementation modules. By establishing the prediction weight for each module, the organizations will be able to evaluate the strength of the corresponding factors present before embarking on the SCPs. The organization can identify and create awareness of the essential elements in the SCPs implementation process and identify the actions necessary before implementing SCPs. The AHP can be a useful guide in the decision-making process of SCPs implementation, especially for medium- and large-scale organizations. Research limitations/implications – The priority weights are subjective and assigned as per the judgment of SCM managers from both the organizations. Further, the priority weights can be obtained from more industry experts through a questionnaire. Second, in this model, only ten practices are taken into consideration for successful SCPs implementation; more practices may be included in future research. Practical implications – The methodological approach presented can be a useful guide in the decision-making process of SCPs implementation in an organization. The outcome will aid practitioners to know the SCPs and benchmark the organizations on the basis of the methodological research conducted. Again, this model can simply act as a possible research model and the data can act as an example that can be utilized for other studies. Originality/value – This is the first kind of study which identified ten SCPs and further deployed AHP approach to see the success possibility of combined SCPs that influence the SCM implementation in an organization.

Factors-driven comparison between BIM-based and traditional 2D quantity takeoff in construction cost estimation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdul Wahab ◽  
Jun Wang
Keyword(s):  
Decision Making ◽  
Cost Estimation ◽  
Content Type ◽  
Team Members ◽  
Study Results ◽  
Level Of Details ◽  
Significant Comparison ◽  
The Difference ◽  
Better Than

PurposeQuantity Takeoff (QTO) is an integral part of the decision-making process. Currently, QTO is mostly done using manual or 2D method, and practitioners are considering the use of BIM quantity takeoff as an effective alternative to the traditional 2D software takeoff. However, the existing literature does not have adequate studies to confirm that the use of BIM-based QTO is better than the 2D method. Therefore, this paper aims to expand and improve the existing literature into a more detailed analysis of each element to investigate that BIM is indeed a better option of the two QTO methods.Design/methodology/approachA total of 19 factors in four broad categories, i.e. timely decision making, accuracy, collaboration, and level of details were identified to draw a significant comparison between the two procedures, i.e. BIM-based quantity takeoff and traditional 2D takeoff. Surveys and case study are used to collect data for analysis to achieve the research goals.FindingsThe questionnaire survey showed that using BIM for the QTO process has significant benefits in achieving higher productivity on takeoff, accuracy, clarity and collaboration among the team members. The case study results also showed improvement in BIM-based QTO by achieving higher accuracy and productivity.Originality/valueUnderstanding the difference between the two QTO processes is a challenging task; therefore, this paper contributes to drawing a comparison line between the two processes by introducing the factors that affect the QTO process.

Blockchain in Supply Chain: Case Study of Lottemart Ciputat

2019 ◽  
Vol 5 (1) ◽  
pp. 38-49 ◽  
Author(s):  
B. K. Handoyo ◽  
M. R. Mashudi ◽  
H. P. Ipung
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Information Asymmetry ◽  
New Technology ◽  
Business Case ◽  
Analysis Method ◽  
Chain Management ◽  
Production Processes

Current supply chain methods are having difficulties in resolving problems arising from the lack of trust in supply chains. The root reason lies in two challenges brought to the traditional mechanism: self-interests of supply chain members and information asymmetry in production processes. Blockchain is a promising technology to address these problems. The key objective of this paper is to present qualitative analysis for blockchain in supply chain as the decision-making framework to implement this new technology. The analysis method used Val IT business case framework, validated by the expert judgements. The further study needs to be elaborated by either the existing organization that use blockchain or assessment by the organization that will use blockchain to improve their supply chain management.

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