INTRODUCTION
The architecture, engineering, and construction (AEC) industry is one of the oldest
industries in civilization. For over two hundred years, the industry has operated on the
basis on trust based relationships. The industry is largely separated along trade lines;
trade contractors either form teams or work together to complete a project. Typically
there is a project superintendent to oversee and coordinate construction of the entire
project. For example, in an office or residential building, the architect oversees the work
during the design phase of the project. He sub-contracts design work to the structural
engineer, HVAC engineer, electrical engineer etc. But, during the construction phase of
the project, the GC oversees the work and coordinates work between the various trade
contractors. In a house reconstruction project, a project coordinator or sometimes the
customer coordinates work between the various trade contractors.
In recent years, several project based collaboration tools have been developed for the
AEC industry. But adoption of these tools has been restricted to big projects and among
big institutional players; players in small reconstruction projects still collaborate in the
traditional way: via phone and fax. In small house reconstruction projects, the problems
are different. First, job durations, although small, are difficult to estimate accurately.
Second, poor coordination causes the schedule to be extended. Third, rescheduling and
scope expansion is typical. All of these make it difficult for downstream contractors to
plan their schedule upfront. This causes project schedules to be drawn out longer than
necessary. The whole supply chain is fragile. Traditionally, project durations are padded
with conservative estimates based on experience to reduce the impact of this variability.
All these factors have led to low customer satisfaction levels, high cost associated with
variability, and a risk averse trade contractor community.
In an attempt to change all this and improve customer service, a major retailer is
undertaking a huge challenge. They are attempting to share information from product
vendors and service vendors to increase visibility, better collaborate, and provide future
of home remodeling services. Their aim is to provide a more reliable due date for home
improvement projects when the customer initiates a project in their store using product
shipment information from product vendors and service provider schedule and capacity
availability information from contract service vendors. They are modifying the supply
chain to act as the orchestrator for the entire collaboration. The following paper will
attempt to discuss the retailer’s objective and where they are in their charter to create a
better customer experience. Their primary objectives are the following:
Improve customer satisfaction by providing reliable due dates for project
completion
Streamlining their business to have better accountability, auditing, and
centralized control of good and information flow
Reduce project delivery timelines
Better forecast demand and plan for resource availability
The basic situation of the case
In their current business, the retailer is involved in selling thousands of home
improvement products. Starting from a simple carpet installation to a whole house
redesign including kitchen, bath, and flooring remodeling, the retailer historically is in the
business of selling products. Selling value added services on top of that has been done
through contractual relationships with relevant trade contractors or service vendors.
They have existing relationships with contractors that provide measure, deliver, and
installation services. But all collaboration is through phone or fax. There are dedicated
employees that handle the collaboration in the case of complex projects acting as
project superintendents. The current construction supply chain for the retailer is shown
in figure 1. The supply chain can be described in the context of a carpet installation. A
typical carpet installation has the following process: