Information systems in construction and property industries PDF

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Table of Contents Information Systems in Manufacturing Industry ....................................................... 2 Reasons for difference in adoption of Information Systems between Manufacturing Industry and Construction & Property Industries ..................... 4 Information Systems in...

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Information systems in construction and property industries Anatoli Zhyzhneuski

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Information Systems in Manufacturing Industry ....................................................... 2 Reasons for difference in adoption of Information Systems between Manufacturing Industry and Construction & Property Industries ..................... 4 Information Systems in Construction and Property Industries ..................................... 5 Conclusion ........................................................................................................... 8 References ............................................................................................................. 9

INFORMATION SYSTEMS IN MANUFACTURING INDUSTRY Turban et al. (1994, p.7) stated, that “Information System (IS) is a collection of components, that collects, processes, stores, analyzes and disseminates information for specific purpose”. At present, the majority of existing ISs are Computer-Based ISs (CBISs). CBIS may include the following components: 1. 2. 3. 4. 5. 6. 7. 8.

People Database Documents Procedures Hardware Software Purpose Social context

It is not necessary, that each CBIS includes all of these eight components. A few different Information Systems can exist in one organization, they can be either independent, or connected, what means supporting each other or even integrated in larger IS. Integration of ISs is getting more popular, it creates a new strategic approach to total manufacturing information management (Lee, 2006). Information Systems can perform a lot of functions in manufacturing industry. They can be grouped in five major groups by functionality, namely: 1) 2) 3) 4) 5)

Manufacturing Marketing Accounting Finance Human Resource Management

Figure 1. Major Types of Information Systems (Source: Laudon & Laudon, 2003)

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Here are a few examples of manufacturing function ISs used within manufacturing industry:        

Production scheduling and planning Materials requirements Just-in-time inventory management Supply chain management Resource planning Computer-aided design and manufacturing Automation and Robotics Computer-integrated manufacturing

Information systems may be classified according to their primary function. Seven major systems under this classification in accordance with Turban et al. (1994, p. 39) are: TPS (Transaction Processing System) – supports basic operational tasks in each functional area MIS (Management Information System) – supports functional managers OAS (Office Automation System) – supports office workers GSS (Group Support System) – supports people working in groups ISS (Intelligent Support System) or KWS (Knowledge Works System) or KBS (Knowledge Based System) – supports knowledge workers, using ES (expert systems) and ANN (artificial neutral network) 6. DSS (Decision Support System) – supports managers and analysts 7. EIS (Executive Information System) or ESS (Executive Support System) – supports executives

1. 2. 3. 4. 5.

Figure 2. Pyramid of Information Systems Fewings (2008), Nicholas & Steyn (2011) stated, that ISs can be used alongside any project regardless specific industry for support of project management. In this case they may be treated as PMIS (Project Management Information Systems). According to Nicholas & Steyn (2011), PMIS can be used for the following functions during project:     

Scheduling and Network Planning Resource Management Budgeting Cost Control and Performance Analysis Reporting, Graphics and Communication

At present, computer-based PMIS can be involved in each stage of project, throughout all phases of the project life cycle, from Conception through Definition and Execution to Phase Out.

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REASONS FOR DIFFERENCE IN ADOPTION OF INFORMATION SYSTEMS BETWEEN MANUFACTURING AND CONSTRUCTION & PROPERTY INDUSTRIES In general construction and property industries (CPI) can hardly be compared with manufacturing industry in regards to adoption of information systems. Some major reasons for such situation in construction are mentioned below. These reasons are associated with property industry as well in less or similar degree. 1. Nature of construction. Every construction project is unique. Construction projects have a high level of risks and uncertainties. Construction is also known as an industry with low profitability. 2. Traditionalism of construction. The industry is also known for a high level of local and national protectionism and a strong trade union influence. Strong trade unions influence and resistance of personnel to adoption of new techniques and technologies, as a result of this, the growth of productivity in construction industry has no significant positive growth in comparison with other industries. The statistics of U.S. Bureau of Labour Statistics (Figure 3) showed that production of construction has no positive growth for half of a century, and has been even falling during the past several years. This statistic shows that productivity in US construction has been declining over the last 40 years with average rate – 0.6%. At the same time, despite declining in productivity, construction industry still has better payment conditions than the average payment conditions in manufacturing industry (Teicholz, 2004).

Figure 3. Comparison of productivity index in construction industry and all non-farm labour industries from 1964 through 2003 (Sources: U.S. Department of Commerce, and The Bureau of Labour Statistics) 3. Low level of investments into Research and Development (R&D) within construction industry. Construction traditionally spends not too much on R&D. Leading Japan companies have different attitude to investments in R&D. Historically Japan businesses have been very strong in development and implementation of robots and automated production systems. The six biggest Japanese contractors – Kajima, Taisei, Takanaka, Shimizu, Kumagai-Gumi and Obayashi had annually contributed 1% of their turnover to research and development, what is significantly higher than usual R & D spending across AEC industry. (Taylor et al, 2003). This approach gives good results, and Japan construction companies took a leading position in robotics and automation of construction processes. Changeable industrial world is pushing construction to new horizons. One of the most traditional industries is exploring innovative solutions already used in other industries and tries to adopt them for needs of construction industry stakeholders. The industries such as an aerospace and an automobile have reached a great deal of success in adopting the automated systems for their work. Page 4 of 10

INFORMATION SYSTEMS IN CONSTRUCTION AND PROPERTY INDUSTRIES Fewings (2008) highlighted major areas where Information Systems can be successfully used in construction projects. DSS may be used for human resources planning during critical periods of project. KBS may be useful to support estimating and integrated systems connected with CAD, as well as to support costing and planning systems. IES may be used to summarize project information for director and client level. These ISs may be helpful in monitoring of a business plan and project goals, providing data analysis (e.g. cash flow, production targets) and comparison between projects. Information has to be presented in the format most suitable for users’ level, particularly graphs and colours must be used. Major types of Information Systems got a different level of implementation in construction and property industries. Examples of various IS used in both industries are described below. 1) TPS, those are designed to process routine transactions efficiently and accurately. In property, TPS can support a wide range of functions, such as:  purchase & sale processing  account processing  payroll calculation & payment  time management, including property viewing booking  property online catalogue, including communication  energy (usage) information system for property Regarding property industries, these ISs are very well spread, and it is difficult to image modern property industry without support of TPS. TPS is getting well used for both property sale and property maintenance purposes. In construction, TPS are often used for performing the following functions:  account processing  payroll calculation & payment  materials & stock management  human recourse management  time management, including working time collection on construction sites Some companies in CPI adopted account and finance ISs. CPI has a big potential for implementation of such ISs as eInvoicing and Time Management (TM). eInvoicing and TM can give quick return in investments and immediate financial and operational improvements. eInvoicing is seriously supported by EU authorities as one of possible approaches, that can improve economic situation within the EU countries. TM systems also have several advantages either operational or financial. Time Management system can be based on different tools, e.g. a wireless time clock, GPS mobile clock, mobile devices (e.g. JobClock and PocketClock www.etaktime.com/cc, Ace Project www.aceproject.com, Data Maxx www.data-maxx.com). 2) OAS support staff working in the offices, and 3) GSS support workers working in the groups and are getting more popular in CPI. Calendars, web-based collaborative tools, document processing and sharing tools are being better known in CPI. 4) MIS, those produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s underlying transaction processing systems to middle and operational level managers to identify and inform structured and semi-structured decision problems (Wikipedia). MIS in CPI may support the following functions:  communication & collaboration  project and portfolio management  control, monitoring & tracking of construction activity  control and monitoring cash flow, purchase, account  time monitoring system  facility/buildings management information  land & property sales information database & registry systems

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Here are some examples of MIS used in CPI:  Collaborative PM (e.g. Vico, Synchro) Vico Construction is a multifunctional application which allows collaboration, design, estimation, planning and control of construction projects. Synchro is another example of construction specific applications.  Building Information Facility Management applications (BIM and BIFM)  Project Management applications, such as Microsoft Project and PRINCE2  eMobile on-site systems (e.g. SmartBuilder1 www.smartbuilder1.com )  Management of portfolios or projects (Futcher & Rowlinson, 1996, 1998) Stakeholders of CPI have a different pace in adoption of mentioned MIS systems. Some of these systems have already well spread (PM applications), others are getting popular very quickly (Collabotarive PM, BIM) and some of them, such as eMobile and BIFM systems, which emerged recently are being used within CPI and got positive feedbacks from stakeholders. Energy Information Systems are fairly well spread in CPI and getting more popular (Simonian & Goodell, 2011). 5) KWS or KBS, are used in case of concept of Knowledge Management is adopted by stakeholders of CPI. It is fairly new, but is already often used approach. Informal and formal solutions for KM are used within CPI organizations. Web-based KM is getting more popular and being used, especially in design offices. It is not limited by design offices, because it can create a significant improvement in any type of activity associated with CPI (quantity surveying practices, etc.) 6) DSS are used for decision making on senior managers level. There are functions, which can be supported by DSS within CPI:  bedding & tendering  monitoring prices & quotation  design options selection  on-site management decision system  construction materials selection  building energy efficiency Here are a few practical examples:         

Design systems, based on applications, such as BIM (e.g. Vico, Revit) On-site eMobile management systems, such as SmartBuilder1 www.smartbuilder1.com Energy Efficiency applications, such as DEAP, SBEM www.bre.co.uk , DesignBuilder www.designbuilder.co.uk, ECAT www.ecat.co.uk Life Cycle Assessment, such as BEES http://www.nist.gov/el/economics/BEESSoftware , SimaPro www.simapro.co.uk and Loh et al., 2010 (Figure 4) Construction tendering process system (Mohemad et al., 2010) Construction materials selection (Pearce et al., 1995; Jadid & Badrah, 2012) Technology selection (Abraham et al., 2007) Site selection (Ahmad et al., 2004) Optimisation of construction site layouts (Khalafallan & El-Rayes, 2006)

Figure 4. Tools available to support design process (Source: Loh et al., 2010) Page 6 of 10

7) EIS or ESS, which support the high ranking executives, being slowly adopted in CPI. These IS are mostly used for a long-term planning and forecasting. Because of nature of CPI, dynamic technical and business environment in which, CPI stakeholders are operating and strong dependence of CPI on a social, economic and political situation, it is not easy to receive good results from adoption of EIS/ESS within CPI. However, these systems are already used in CPI, especially for human resource management (Raiden et al, 2001), programme/portfolio management (Hyundai PMIS, Figure 5) and construction contract bidding decisions (Couzens et al, 1993). As it is known, TPS is the most basic type of information systems. Outputs of TPS usually used as inputs for other types of systems (MIS, DSS, etc). Information systems can be either built for one single task (e.g. preparing payslips), or they may be integrated to facilitate several functions (e.g. time management, time control & reporting, payroll/payment processing, monitoring & control). ECL www.eclsoftware.com and Hyundai developed integrated multifunctional information system (business management system) for construction project management. Such system supports a lot of functions across on different department of construction organization covering tasks performed within entire business organization hierarchy (from bottom workers’ level up to top executive level).

Figure 5. Project Management Information System (Source: Hyundai)

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CONCLUSION In general, manufacturing industry in adoption of Information Systems is followed by CPI. Differences in nature of industries and their business environments give manufacturing industry advantages above CPI. However, situation is getting better for CPI stakeholders over the past two decades. Having seen advantages, which manufacturing industry had got from adoption of Information Systems, CPI stakeholders, including private companies as well as state, semistate, professional and academic organizations are trying to improve situation with adoption of Information Systems within CPI. Examples mentioned in the previous chapter confirmed that Information Systems are getting better known in Construction and Property industries. Some of those systems, which are used for accounting, finance, human resource, PM (Lee & Yu, 2012; Jung et al., 2012), KM are fairly well implemented within CPI. For example, according to survey performed amongst 100 leading medium-large size construction companies in the UK in 2001, Human Resource ISs (HRISs) were used by more than a half (60%) of responders (Raiden et al., 2001). This survey provided important statistics on how long such ISs were used by responding companies (Figure 6) and for which functions they were used (Figure 7).

Figure 6. Length of time HRIS in place (Source: Rainden et al., 2011)

Figure 7. Main uses of HRISs in leading construction companies in the UK (Source: Rainden et al., 2011)

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REFERENCES

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