Improving construction supply chain management with integrated application of RFID technology and...

8th RIRL September 29, 30 and October 1st 2010 BEM-Bordeaux Management School

Improving Construction Supply Chain Management with Integrated Application of RFID Technology and Portal System

Javad Majrouhi Sardroud PhD researcher, School of Civil Engineering & Construction, Kingston University, UK

[email protected]

Mukesh Limbachiya Professor and head of School of Civil Engineering & Construction, Kingston University, UK

[email protected]

Abstract

Construction projects are extremely complex and generally take place in uncontrolled

environments owing to the involvement of various participants where each project comprises

several phases’. Obtaining real-time information and information sharing among the

involved participants of the construction projects are vital to link the supply chain well and

completing projects comply with project budget and deadlines. This paper investigates the

applications of integrated RFID technology and portal system as promising information and

communication technology support facility in construction e-logistics to overcome the supply

chain complexity, to improve supply chain efficiency and practical communication and

control among participants in construction industry.

Key words: Construction supply chain, RFID, Portal

1: INTRODUCTION

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010

Supply chain with Radio Frequency Identification (RFID) technology is a global network of

integration hubs of suppliers and clients that create, track, and deliver RFID-tagged finished

products manufactured from raw materials and semi-finished parts to multiple destinations

from multiple supply sources (Myerson, 2007). Supply Chain Management is the integration

of all activities associated with the flow and transfer of goods from the raw materials stage

through to the end user, as well as the associated information flows by improved supply chain

relationship, to achieve a sustainable competitive advantage and focuses on minimizing the

time taken to perform each activity, eliminating waste and optimizing response by

maximizing value (Handfield & Nichols, 1999). Supply chain control is an integral aspect of

supply chain management (Wang et al., 2007). Logistics creates value within the supply chain

through managing customer service, orders, inventory, transportation, storage, handling,

packaging, information, forecasting, production planning, purchasing, cross docking,

repackaging, preassembly, facility location and distribution (Bowersox et al., 2007, Gourdin,

2006). Originating as a management method to optimize internal costs and productivities,

SCM has evolved, through the application of e-Logistics technologies, into a powerful

strategic function capable of engendering radically new customer value propositions through

the architecting of external, Internet-enabled collaborative channel partnerships (Ross, 2003).

The construction industry is extremely complex because its products are unique and

individual projects generally involve several participants therefore, designing a formalized

SCM system for the construction industry is extremely difficult. However, information

technology enables effective supply chain control (Simchi-Levi et al., 2000). Supply chain

control in construction generally comprises a group of companies and individuals working

collaboratively in a supply network of interrelated processes or activities designed to

effectively satisfy end-customer needs while rewarding all members of the supply chain

(Arbulu & Tommelein, 2002). Construction supply chains and logistics includes the process

of planning, ordering, shipping, receiving and storing, physical distribution, and related

information from the point of origin to point of utilization for the reason of meeting the

requirements. Information sharing is the key to supply chain success since it enables project

participants to make decisions (Chopra & Meindl, 2001).

Construction materials and components represent a major expense in construction and may

account for 50–60% of the total cost of a typical project (Kini, 1999). In construction sites in

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 spatially-constrained urban areas, planning and managing the logistics of the materials is

crucial, as it directly affect the construction schedule and the cost; for example if a problem

breaks out, it would then trigger cascading problems in other parts in the project which would

result in production delays and cost overrun as discussed by (Cho et al., 2011). Crew foremen

are required to verify the availability of materials and other resource requirement during the

planning process of installation of materials (Choo et al., 1999).

Basic principle of materials management is effective management mechanism and supervision

for planning and controlling all of the efforts required to guarantee the proper quantity of the

right materials at a reasonable cost when they are needed for installation (Song et al., 2006).

It is concerned with the purchasing, shipping, receiving, storage, inventory control, handling,

installation, and eventually disposes of the surplus of materials at the end of project. Thus, it

plays an essential role in the construction projects when the projects need to be completed

within defined budget and time.

During construction, the materials have to pass through various phases such as design,

fabrication, interim processing, delivery, and storage prior to scheduled installation (Choo et

al., 1999). Identifying complete resource requirements for each task and verifying the

availability of those resources can be done via information, collected during construction.

Data which, were collected accurately and comprehensively on a construction site and then

transferred timely to a site office is vital for correct assessment of job conditions that are used

in managerial tasks (e.g. materials management) (de la Garza and Howitt, 1998). Previous

observations on construction sites observed 30–50% of the field supervisory personnel’s time

was spent on recording and analysing field data (McCullouch, 1997) and 2% of the work on

construction sites was devoted to manual tracking and recording of progress the data (Cheok

et al., 2000). In those manual processes, the accuracy and process time often rely on the

judgments and writing skills of the personnel collecting the data (Liu, 1995). In addition,

since most data items are not captured digitally, data transfer from a site to a field office

requires additional time.

This paper investigates an RFID-based mobile, pervasive, ubiquitous system integrated with

other system to improve construction supply chain management by the help of e-logistics.

This approach involves the use of RFID and technology to obtain real-time information and


information sharing among the involved participants of the construction supply chain, such as

materials manufacturers, suppliers, contractors, and construction site offices.

2: BACKGROUND REVIEW

Past several decades, many researchers have demonstrated that any interruption to the normal

flow of materials results in causing serious problems. For example, a report published by the

Business Roundtable (1982) estimated that more than 6% of all construction labour costs

could be saved if materials and equipment had been available at the job site when needed.

This report claimed that materials management is a distinct system that can contribute to

increase the cost effectiveness of a construction project (Jang and Skibniewski, 2009).

According to Bell and Stukhart (1986), an effective materials management system involves

integrated coordination of such materials-related functions as quantity takeoff, vendor

evaluation, purchasing, expediting, shipping, receiving, warehousing, and distribution. They

concluded that when these functions are not managed properly, it can extend procurement

lead time, increase construction lost time, enlarge materials surpluses, and generate problems

with materials availability. Bell and Stukhart (1987) conducted further research to quantify

the costs and benefits of materials management systems and concluded that an effective

materials management system could reduce typical surpluses of bulk materials from a range

of 5 to 10% down to about 1 to 3% of the bulk materials purchased.

Thomas et al. (1989) investigated the impact of materials management on labour productivity.

Their findings of a case study on medium sized commercial construction projects showed a

benefit/cost ratio of 5.7 for effective materials management, thus supporting greater attention

to materials management. According to their findings, the lack of effective materials

management has resulted in an estimated work hour overruns of 18% due to items required

for installation were not always ready at the moment they were needed, thus forcing

installation crews to remain non-productive or idle while waiting for the materials.

Inefficient materials management could lead to an increase in field labour hours of 50% or

more (Thomas and Sanvido, 2000). Therefore, it is essential to implement efficient materials

management and control system as this could potentially increase productivity by 8% as

observed by Akintoye (1995). Choo et al. (1999) found that the biggest problem faced by the

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 field workers is dealing with discrepancies between the anticipated, actually needed and

available resources, which include materials. Research has also showed that a reduction in

cost of materials is possible due to the reduction in waste otherwise caused by manual and

inefficient materials management and control. Waste of materials represents a large

percentage of production costs (Formoso et al., 2002; Li et al., 2005). It has been repeatedly

observed that up to a third of craft workers’ time is lost in searching for components that they

cannot find or in waiting idle to make use of those items while others search for them (Caldas,

Torrent and Haas, 2006).

In order to provide the effective materials management many researchers investigated the use

of Automated Data Collection (ADC) technologies (e.g. RFID) for automating the task of

construction materials management.

In earlier research, Jaselskis et al. (1995) have summarised RFID technology and surveyed its

potential applications in the construction industry including concrete processing and handling

and cost coding of labour and equipment. Automated tracking of structural steel members

with the aid of RFID technology at the construction job site studied by Furlani (2000). In a

study implemented by Jaselskis and El-Misalami (2003) RFID technology has been used to

receive and keep tracking of pipe spool and hangers in a power plant project and a refinery

project. Navon and Berkovich (2005) studied the use of RFID application in collecting data

related to material arrivals and dispatches without information about tracking the status of

goods on transit.

In another study, Caldas et al. (2006) investigated the use of GPS to track the position of

fabricated pipe spools on lay down yards of an industrial construction project in order to

improve the process and reduce the number of lost items. Song et al. developed an RFID

based method to automate the task of tracking, delivery, and receipt of fabricated pipe spools

in lay down yards and under shipping portals (Song et al., 2006a, Song et al., 2006b). Ergen et

al. (2007) conceptualised and applied the use of RFID and GPS combined with GIS

technology in order to locate precast concrete components with minimal worker input in the

storage yard, the position of a gantry crane was tracked by a GPS receiver while GPS data

were written into RFID tags attached on the precast units being lifted. Kaneko et al. (2007)

have developed a construction logistics system using RFID technology for finely controlling


several construction sites in order to improve the transportation and handling of construction

materials. Jang and Skibniewski (2007) developed an Automated Material Tracking system

based on ZigBee localisation technology with two different types of query and response

pulses. Song et al. (2007) developed a system that can identify logistics flow and location of

construction materials with better performance by using RFID and wireless sensor networks

such as ZigBee technologies. Although, the aforesaid research has clearly proven the value

and potential of using new technologies, except for the GPS-based tracking application all

others are either dependent on pre-installed infrastructure (e.g. routers) or controlled

environmental conditions. In addition, majority of research focused only on one process in

one phase, and mostly related to certain segments of the entire process. Therefore, the results

of the tests cannot be generalised for other processes and studies focusing on detailed

application of infrastructure-free in construction materials management are still scarce.

3: CHALLENGES FACING THE CONSTRUCTION INDUSTRY

There are numerous important challenges facing today’s construction industry that are

motivating the adoption of new technologies such as RFID and sensors technology. Some are

new to the industry, and some are centuries old. Many of these challenges are a direct result

of construction operations, while others a result of indirect, peripheral activities. In addition

to these challenges, the construction industry is highly competitive, and firms must

continually improve their productivity to remain competitive. At present, a chronic problem

in the construction industry that requires urgent attention is construction supply chain. The

construction supply chain network can be classified as a big and complex organisation that is

difficult to manage. This is because the operations or activities involved in the construction

network consist of multidiscipline groups and tasks. The concept of supply chain management

is about managing information and material flows, plant operations, and logistics through a

common set of principles, strategies, policies and performance metrics throughout its

developmental life cycle. As part of the back bone for the supply chain processes, the logistics

play a critical role in optimizing the flow of materials, equipment and people. If materials

which are needed in construction project do not supply in right place on time, it can make

problems such as delaying schedule, increasing the cost of construction and reducing

productivity (Song et al., 2007). Thus, the identification of material, identifying materials

moving flow in logistics and tracking materials location are needed for successful project

management in construction.


A report ‘Improving Construction Logistics’ published by the Strategic Forum for

Construction in August 2005 revealed that quite a considerable amount of waste produced in

the construction is caused by poor management of materials delivery services (e.g. from

supply logistics to site logistics), inventory, communications and human resources. The

consequences of poor construction-logistics are the following setback; about 30% of losses in

overall construction cost, contributing to the bad image of the industry, poor quality of

product, increased project duration and added risks to workers’ health and safety

(Radosavljevic & Dan-Asabe, 2007). A wrong delivery arrangement of materials causes’

general disorder on construction sites is suggested on this report. This disorder is often

accompanied by a need for unplanned facilities and/or activities such as additional site

storage, work interruption, extra handling, breakage, and loss. The report suggests that 50%

of skilled craftsmen time is spent on unskilled tasks, time that they could have otherwise

devoted to supervising workers. Rebolj et al. (2008) also suggested that a great deal of

improving the construction-logistics must be focused on the materials and information

delivery in order to achieve better productivity, avoiding delays and reducing waste. In

contrast to manufacturing industries, which profit from long-lasting partnership with suppliers

and customers, construction-logistics supply chains are considerably more difficult to manage

and optimize due to various factors such as diversification of projects (i.e. various materials,

methods, project location) and technical complexity of a project (Omar & Ballal, 2009).

Communication technology, materials handling, transportation and warehousing are known as

the critical services that serve the logistics operation processes. These include services in

facilitating Just-In- Time (JIT) operation, optimising the movement of raw materials, work in-

process and finished goods, optimising the transportation mode and locating and designing

facilities to meet customer service levels respectively.

Lack of materials when needed, poor identification of materials, re-handling and inadequate

storage are causes of delay or unnecessary work, which lead to lose in workforce productivity

and increase overall project costs. Poor materials management can also result in large and

avoidable costs during construction. For example, if the materials are delivered too early, the

contractor’s money is tied up in the material inventory, space on the jobsite has to be

allocated for storage and these materials could be subjected to pilferage, breakage, or spoilage

(Bennett, 2003). On the other hand, if they were delivered too late, negative impacts on the


programme will occur. In this sense, achieving a balance between too early and too late is

always a challenge. Some projects rely on just in time (JIT) deliveries, in which the material

arrives on the jobsite at the moment its installation is begins, thus avoiding the extra expenses

and storage space required. Therefore, insuring a timely flow of material is an important

concern of project managers (Hendrickson, 2008).

Adverse materials management conditions were identified which include: extensive multiple

handling of materials, materials improperly sorted or marked, trash and debris obscuring

access route and movement of materials, running out of materials, crew slowdowns in

anticipation of material shortages, and rework when materials arrive.

4: A KEY NOTE OF E-LOGISTICS

Having the right product at the right time in the right place (at the right quantities) while

minimizing costs could be defined as a main aim of SCM and the logistics function is at the

heart of SCM which is responsible for managing the acquisition, movement and storage of

materials, part and finished goods inventory with the related information flows through an

organization. An effective logistics system can be configured to provide a wide range of

functions such as: storage, transport, distribution, assembly, direct shipment, sorting, break-

bulk, vehicle routing, package tracking, e-commerce services, etc. Logistics involves the

integration of information, transportation, inventory, warehouse, material handling, and

packaging. E-Logistics is a subset of e-SCM and leverages the power of the internet and other

technologies (such as wireless) to provide robust information to supply chain participants and

offer unique levels of visibility across the entire supply chain. Typical e-Logistics processes

consist of three parts namely; Request For Quotes (RFQ), Shipping, and Tracking. Automated

data collection technologies have advanced supply chain integration and coordination at a

cost-effective way. Real-time, accurate logistics information that can be shared by supply

chain players to allow for more intelligent logistics decision-making and timely responses to

planned and unplanned events in the supply chain.

5: CONSTRUCTION MATERIALS MANAGEMENT

Construction is considered as a management process, which involves a large number of key

players (e.g. owners, contractors, consultants, and manufacturers) and many activities.

Successful project management in construction requires the efficient utilisation of all

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 resources where the management of the three inter-related factors of quality, cost, and time

are essential, which underpinned by safety. Halpin and Woodhead (1998), in their

introduction to construction management, stated that ‘construction management addresses

how the resources available to the manager can best be applied’. They suggested that the four

primary resources to be managed are the ‘four Ms’ of manpower, machines, materials, and

money. Materials management that includes fabrication, shipping, receiving, handling,

storing, and installation, is considered as a means to achieve better productivity, which

requires special attention for cost reduction. Depending on materials fabrication and their

handling condition on construction site, construction materials can be classified into three

broad categories bulk (e.g. pipes), engineered (e.g. precast concrete components), and

fabricated materials (e.g. steel beams), which require different approaches during the planning

and construction phase (Stukhart, 1995). The different categories of materials vary in cost,

supply lead time, and inter-changeability.

The aim of materials management is to get the right quality of materials with the right

quantity of supplies, at the right time, in the right place, and for the right cost, which includes

the major functions of identifying needs, acquiring, distributing, and disposing of materials on

a construction site. The main benefits from efficient Materials management and Control

System are:

- Increased productivity and avoidance of delays. Estimates of increased productivity vary

from 8% (Akintoye, 1995) up to 12% (Bell and Stukhart, 1987). This is mainly due to the

availability of the right materials prior to work commencement and the ability to plan the

work activities according to the availability of materials.

- Reduction in man hours needed for materials management. Research showed that on

projects where there is a lack or absence of a materials management system, craft foremen

spend up to 20% of their time searching for materials and another 10% tracking purchase

orders and expediting (Bell and Stukhart, 1987).

- Reduction in the cost of materials. This is due to reduction in waste caused by manual and

inefficient materials management and control (Formoso et al., 2002).


6: IMPORTANCE OF MATERIALS MANAGEMENT

Construction materials and components may constitute for more than 50% of total project

costs and timely availability of them are essential element of planning and controls in

construction. Research projects conducted during the last decade have concluded that

materials management is a critical factor in construction project performance and plays an

essential role in successful managing of the construction projects where projects need to be

completed within a defined budget and deadline.

Materials management recognised as the most significant and common factor affecting

construction productivity and problems related to the management of flow of materials can

influence productivity, in which unavailability of them when needed may greatly pressure the

project schedule and increase the project overall cost. Formoso et al. (2002) highlighted the

importance of monitoring the flow of materials and their related information. Navon and

Berkovich (2005) identified lack of up-to-date relevant information as main problem.

Continuity of supply, minimum lead time and transportation cost, less duplication of efforts,

and lower prices material and equipment are some of the importance of materials

management. Some of the major problems which concern construction materials management

explained below:

- Materials required but not purchased ;

- Materials purchased but not received;

- Materials arriving to the site at the wrong time;

- Materials arriving to the site in the wrong quantity;

- Materials whose specifications do not match the ones in the purchase order;

- Unavailability of information regarding the status of the orders;

- Lack of complete and up-to-date information regarding arrival of materials to the site;

- Lack of up-to-date information regarding on site stocks;

- Extensive multiple-handing of improperly sorted materials in search of required pieces;

- Missing or surplus of materials;

- Lack of storage space for materials on site;

- Waste of man hours searching for materials and tracking them; and

- Materials that are issued to crafts and are then not used or installed.

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 7: A BRIEF REVIEW OF TECHNOLOGY

Automated Data Collection technologies is important in successfully controlling and

managing construction projects and will meet the needs of main objectives such as scope,

quality, cost and time. Advancements in field data capture technologies, such as RFID enable

collecting, storing and reusing field data accurately (i.e., without inaccurate recording of

manual process), completely (i.e., without missing data), and timely (i.e., whenever needed).

Some application of advanced tracking and data storage technologies in construction industry

have been investigated previously e.g., (Akinci et al., 2006) and (Behzadan et al., 2008).

7.1: RFID technology

An early, if not the first, work of exploring RFID is the landmark paper by Harry Stockman,

"Communication by Means of Reflected Power" (Landt, 2005). A RIFD system consists of

tags (transponder) with an antenna, a reader (transceiver) with an antenna, and a host

terminal. The RFID reader acts as a transmitter and receiver and transmits an electromagnetic

field that ‘‘wakes-up’’ the tag and provides the power required for the tag to operate (Wang,

Lin and Lin, 2007).

An RFID tag is a portable memory device located on a chip that is encapsulated in a

protective shell and can be embedded in any object which stores dynamic information about

the object. Tags consist of a small integrated circuit chip coupled with an antenna to enable

them to receive and respond to radio frequency queries from a reader. Tags can be categorised

as read-only (RO), write once, read many (WORM), and read-write (RW) in which the

volume capacity of their built-in memories varies from a few bits to thousands of bits. RFID

tags can be classified into active tags (battery powered) and passive tags, which powered

solely by the magnetic field emanated from the reader and hence have an unlimited lifetime.

Reading and writing ranges are depend on the operation frequency (low, high, ultra high, and

microwave). Low frequency systems generally operate at 124 KHz, 125 KHz or 135 KHz.

High frequency systems operates at 13.56 MHz and ultra high frequency (UHF) and use a

band anywhere from 400 MHz to 960 MHz (Erabuild, 2006).

Tags operating at ultra high frequency (UHF) typically have longer reading ranges than tags

operating at other frequencies. Similarly, active tags have typically longer reading ranges than

passive tags. Tags also vary by the amount of information they can hold, life expectancy,


recycle ability, attachment method, usability, and cost. Communication distance between

RFID tags and readers may decrease significantly due to interferences by steel objects and

moisture in the vicinity, which is commonplace in a construction site. Active tags have

internal battery source and therefore have shorter lifetime of approximately three to ten years

(Jaselskis and El-Misalami, 2003).

The reader, combined with an external antenna, reads and writes data from or to a tag via

radio frequency and transfers data to a host computer. According to Lahiri (2005) the reader

can be configured either as a handheld or a fixed mount device. The host and software system

is an all-encompassing term for the hardware and software component that is separate from

the RFID hardware (i.e., reader and tag); the system is composed of the following four main

components: Edge interface or system, Middleware, Enterprise back-end interface, and

Enterprise back end (Jaselskis et al., 1995). Figure 1 shows how RFID works, step by step.

Fig. 1 RFID works, step by step

7.2: Comparison between Barcode and RFID Systems

Without a doubt, conceptually RFID and barcode systems are relatively similar, where both

are proposed to present capability of quick and reliable technologies in item identification and

tracking. However, the two technologies have different methods for reading and writing data.

With RFID system, the reader interrogates or scans, the tag using Radio Frequency (RF)

signals and does not need a direct line of sight between the reader and the tag. On the other

hand, in the Barcode technology laser beam is used by the reader to scan a printed label and

do require a direct line of sight between the optical scanner and the barcode labels. Barcode

uses Universal Product Code (UPC) whereas RFID uses Electronic Product Code (EPC). The

advantages and disadvantages of barcode technology and RFID system are summarised in

Table 1.


Table 1: Advantages and disadvantages of barcode technology and RFID system

Advantages Disadvantages

Barcode Affordable

Easy to use

Mature and proven technology

Established quality standards

Reliable and accurate

Optical line-of-sight scanning

Limited visibility

Restricted traceability

Incapable of item level tracking

Labour intensive

Susceptible to environmental

damage

Prone to human error

Limited memory

RFID Non-line-of-sight scanning

Simultaneous automatic reading

Labour reduction

Enhanced visibility and

forecasting

Item level tracking

Traceable warrantees

Reliable and accurate

Information rich

Enhance security

Robust and durable

Cost of tags and new

infrastructure

Lack of training and limited

knowledge

Immature technology

Concern of return on investment

Lack of ratified standards

In summary, there are some principal advantages that RFID has over barcode. These are:

- Having a unique code, RFID tags are able to identify every item individually.

- RFID systems are capable to read multiple tags simultaneously and instantaneously where

can cope with harsh and dirty environment.

- RFID tags can hold greater amount of data and data on tags can be read or updated without

line of sight.

- Tagged item can be automatically tracked without worker input, eliminating human errors.


- RFID tags are more durable and suitable for a construction site environment and they are

not damaged as easily as barcode.

7.3: Advantage of RFID technology

The significant advantage of all types of RFID systems is the noncontact, non-line-of-sight

nature of the technology. Unlike a bar code, a large number of RFID tags can be read almost

instantaneously through other materials and they can be read through plastic, cardboard, wood

and etc. Theoretically, this means that you could take a pallet of mixed products, all of which

contain individual RFID tags, and have an RFID reader read all the tags within the palletized

load without having to physically move any of the materials or open any cases. The RFID

tags can store data and can also be read in challenging circumstances at remarkable speeds, in

most cases responding in less than 100 milliseconds. In interactive applications such as work-

in-process or maintenance tracking, the read/write capability of an active RFID system is also

a significant advantage. RFID equipment damage occurs much less frequently than is the case

with magnetic strips or barcodes. RFID tags are less susceptible to damage and can be read

through a variety of substances such as ice, snow, paint, fog, crusted grime, and other visually

and environmentally challenging conditions, where barcodes or other optically read

technologies would be useless.

If the implementation provides a significant method to improve business processes, the total

cost of ownership should go down over the years and provide a good Return on investment

(ROI). Supply chain management forms the major part of retail business and RFID systems

play a key role by managing updates of stocks, transportation and logistics of the product. The

aim is to reduce administrative error, labor costs associated with scanning bar codes, internal

theft, errors in shipping goods and overall inventory levels.

The combination of all above mentioned advantages will provide quick access to a wealth of

information, eliminate human errors, and reduce labour which lead to reduce project activity

times and to save project costs.

7.4: Disadvantage of RFID technology

Cost is the biggest hurdle to RFID tags replacing bar codes for item-level tracking of low-cost

products. RFID systems are typically more expensive than alternatives such as barcode

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 systems. In addition, software and support personnel needed to install and operate the RFID

reading systems may be more costly to employ. Liquid and metal surfaces tend to reflect the

radio waves, which makes the tags unreadable so, RFID tags cannot be read well when placed

on metal or liquid objects or when these objects are between the reader and the tag. The tags

have to be placed in various alignments and angles for taking proper reading. This is a tedious

task when the work involves big firms. Tag and reader collision are common problems with

RFID. Tag collision occurs when numerous tags are present in a confined area. The RFID tag

reader energizes multiple tags simultaneously, all of which reflect their signals back to the

reader. This result in tag collision, and the RFID reader fails to differentiate between

incoming data. RFID reader collision results when the coverage area managed by one RFID

reader overlaps with the coverage area of another reader. This causes signal interference and

multiple reads of the same tag. RFID standards are still being developed.

With more research, the flaws and limitations of this technology can be removed. This will

make RFID technology very useful for diverse sectors like retail, and transport.

Developments in RFID technology continue to yield larger memory capacities, wider reading

ranges, and faster processing. RFID will continue to grow in its established niches where

barcode or other optical technologies are not effective.

8: RFID APPLICATIONS

This innovative technology has already been extensively applied in various industries such as

manufacturing; food; defence; pharmaceutical; transport; retail and healthcare are just some

of the sectors where RFID has already been extensively applied (Ngai et al., 2008).

Pharmaceutical companies are exploring RFID's potential in many areas, including improving

supply-chain efficiencies, complying with government information-collection requirements,

reducing counterfeiting, creating electronic pedigrees and ensuring public safety by making

sure only legitimate drugs enter the supply chain.

Many hospitals are now tracking patients to ensure the right patient is given the proper care.

These systems have proven to reduce the data-entry workload of nurses hence allowing them

to spend more time caring for patients. RFID technology is also used in automating the billing

process. In addition, hospitals are using this technology to track high-value assets, including

gurneys, wheel chairs, oxygen pumps and defibrillators. These systems has reduced the time


spend on looking for assets, thus improving asset utilisation and enhancing hospitals ability to

perform scheduled maintenance.

Paramount Farms, which is one of the world's largest suppliers of pistachios, uses RFID to

manage its harvest more efficiently. NYK Logistics uses RFID to improve the throughput of

containers at its busy Long Beach distribution centre.

Honda-UK Manufacturing Ltd (HUM) for instance has initiated what could be one of the

largest Ultra-High-Frequency (UHF) RFID installations in the automotive industry

(Bacheldor, 2006). The company used the technology to track components as they traverse

HUM’s supply chain, moving from suppliers throughout Europe to HUM’s manufacturing

plant in England.

Domdouzis (2007) cited some of the applications of this technology in medicine, oil industry,

automotive industry, and retail industry. In medicine, RFID tagging is used in blood

transfusion and analysis. An RFID tag can be attached on a wristband which contains

information about a specific patient. An RFID reader scans the tags which are attached to

blood bags and finds the appropriate blood bag for the specific patient.

An important element in the construction and maintenance of oil facilities is the correct

assembly of the pipe work systems with the correct gasket, bolts and to the correct torque. An

incorrect assembly would create leaks which can affect safety in an oil refinery. RFID tags

have used in order to identify individual pipe-work joints. In this case, a database could be

created which would include information about each joint.

In the automotive industry, RFID technology is used in the assembly of new cars.

Specifically, RFID tags can be attached to parts of a car and track them during the assembly

process. In this case, the correct placement of the components of the car can be checked. In

the retail industry, RFID tags are used to identify and track products along the retail supply

chain. The tags can be attached to physical items, such as pens or toothpastes, and transmit an

identification signal allowing them to communicate with RFID readers or with each other.

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 RFID technology is being successfully used for applications in the construction industry as

described in previous chapters. Some of the applications of the RFID technology which can

benefit the construction industry are:

- Facilities management, improving rental equipment delivery performance

- Asset management, location for assets at construction site or elsewhere

- Access control, entrance and whereabouts at construction sites

- Scheduling efficiency, planning logistics as Just-In-Time (JIT)

- Theft deterrence

- Employee tracking

- Jobsite safety and security control

- Job-site logistics

- Equipment usage (working hours registration)

- Inventory management Control, on-site inspections

- Tracking of tools and equipment

- Materials management

- Electronic QA/QC

- Document control

9: MATERIALS MANAGEMENT CATEGORIES FOR IMPLEMENTING RFID

Late deliveries, misplacement, re-handling of materials, and other problems innate in the

traditional manual methods are some of the materials management problems. Materials

management has been identified by a recent construction technology needs assessment as one

of the areas with the greatest potential for improvement and the greatest positive development

impact on engineering construction work processes (Song, Haas and Caldas, 2006). In fact,

materials must be physically found in the lay down yard before being issued to crew workers

who request them for installation. Thus, the basic functionality of the materials management

is the capability to track materials accurately and timely to assure distributing of the right

material to the right location at the right time with the right price.

In the context of a materials management process, accurate and effectively tracking of the

precise location of materials can assist real-time measurement of project performance

indicators (e.g. schedule progress and labour productivity) (McCullouch, 1997) and is able to

potentially facilitate significant increases in productivity and quality through efficiencies in


management and allocation of resources, which lead to a cost-effective impact at the project

level (Kini, 1999; Jaselskis and El-Misalami, 2003; Peyret and Tasky, 2002).

Information needs on the construction projects have been grouped into some categories from

a generic construction project perspective and materials management is one of the major

categories of them (de la Garza and Howitt, 1998; Chen and Kamara, 2007). The most

effective way for construction people to collect and exchange information regarding the

proper control of the flow of materials throughout construction is to retrieve or capture

information at any given moment and at the point where they occurred. However, this

situation has remained almost unexamined until recently and can’t be applied with traditional

information management methods, relying mostly on paper-based documents.

In addition, all computer-based management systems will fail if the information entered and

taken out is not accurate. The data input from all processes including receiving, and shipping

which affect the inventory balance must be automated so that errors become a minor issue.

Research efforts in materials management have identified cost effectiveness and information

needs that are required to implement Automated Data Collection (ADC) technologies to

control the materials management functions. Using these matured technologies, tracking the

location of materials on construction projects has become both technically and economically

feasible and viable, which can have a significant positive effect on the materials control

problem and can lead to successfully moving towards achieving project objectives.

Among the ADC technologies, RFID have matured and become a more feasible and viable.

RFID is a wireless sensor technology that is based on the detection of electromagnetic signals

and radio frequencies are used to capture and transmit data from and to a tag. In other words,

RFID is a method of remotely storing and retrieving data by utilising radio frequency in

identifying, tracking, and detecting various objects that streamlines data acquisition and

identification and can help improve the effectiveness and convenience of information flow in

construction materials management.

Construction Industry Institute (CII) RFID workshop identified some general materials

management categories, where RFID could be beneficial are as follows:

RIRL 2010- Bordeaux 30 septembre, 1er octobre 2010 - Material takeoff,

- Material requisition,

- Awarding material contracts,

- Material inspections,

- Material shipment and export,

- Receipt of materials,

- Material storage,

- In-storage maintenance of materials,

- Issuance of materials to contractors,

- Material installation,

- Material return,

- Equipment start-up, and

- Project turnover.

10: INFORMATION SHARING AMONG THE PARTICIPANTS

Collective information need to be sent automatically to the project database using General

Packet Radio Systems (GPRS). This means that all the information is available in one place

so that construction players can access in a cost�effective way and almost instantly. Thus, an

electronic exchange of information is created in this research, which provides real-time

information and wireless communication among all players such as upstream parties (e.g.

material suppliers) and downstream parties (e.g. contractors) to support project managers of

each partner in monitoring and controlling progress in construction (Figure 2).

Collected data can be used through portal system, Geographic Information System (GIS), or

any other application, where an adequate data structure needed to be identified in order to

store, share, and manage large amounts of collected data and to integrate the collected

information with project management tools. For example, the central station can obtain

current location of materials and estimate the travel time before it arrives at a predetermined

construction site by using GIS system. Furthermore the software can also be pre-programmed

to act as an automated alerts system (e.g. shipping notification sent to contractor by

manufacturer). In summary, most important, innate benefit of using the proposed system is

the efficiency of information acquisition and information communication.


Figure 2: Information sharing among the construction participants

11: CONCLUSIONS

This research is development of e-logistics in construction supply chain integrated with RFID

and portal technologies in order to obtaining real-time information and information sharing

among the involved participants of the construction supply chain such as materials

manufacturers, suppliers, contractors, and construction site offices. In this research

application server and database server based on e-logistics and portal system are server side

or central office that enables logistics information to be shared among the involved

participants of the construction supply chain via the Internet. Approached system can provide

low-cost, timely, and faster information flow with greater accuracy by using RFID technology

and portal system which lead to reduce communication frequency and improve

communication efficiency and satisfaction among the all participants of the construction

supply chain. It is clear that using intelligent system such MPU system will help to keep costs

and time under control in construction supply chain by improving inventory accuracy and

resource visibility and reducing or eliminating lost materials or equipments.

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