Information Technology Integration in the Construction Industry - Assignment Example

Table of Contents 0 INTRODUCTION 1 ment of purpose 2 Importance of IT in the Construction Industry 2.0 MAIN BODY 2.1. INTRODUCTION TO WEB-BASED SYSTEMS 2.2 WEB BASED IT APPLICATIONS IN THE CONSTRUCTION INDUSTRY 2.2.1 Web-Based Project Management Systems 2.2.2 Enterprise Resource Planning (ERP) Systems 2.2.3 Computer Aided Design and Visualization   2.2.4 Building Engineering Applications   2.2.5 Computer Aided Cost Estimation   2.2.6 Planning, Scheduling and Site Management   3.0 CONCLUSION 3.1 Challenges for Adoption of IT in Construction 3.2 Suggestions for the Future 3.3 Conclusion 4.0 REFERENCES ABSTRACT: The utilization of IT across industries has been escalating swiftly; however, this does not seem to be the case with the construction industry which has been rather slower in integrating IT within its system. With the growth of the construction industry, there have been some rapid developments in the use of IT. This paper aims to study the web based management systems that are structured on XML and XML/EDL Model. A brief reference is given to the XML/EDL Model technology and a major portion of the paper studies the various applications of web based management system in construction like web based project management systems, Enterprise resource planning systems, planning and scheduling management, CAD and Building engineering applications. Further the paper provides the challenges faced by the construction industry in implementing IT freely. The high cost and time lag that follows the actual implementation of web based programs is the main challenge discussed, which is followed by suggestion to overcome the challenges. This is followed by the conclusion at the end of the paper. Keywords: information technology, construction industry, management, web based systems, challenges. 1.0 INTRODUCTION The advent of Information Technology has brought with it many revolutionary changes in the way human activity is carried on. The lightning speed of Internet communication has made it possible to compress time span required for collection, aggregation and transfer of data from one end of the world to any other end. Information sharing, via the snail mail and Telegraph or telephone has yielded place to Internet based sharing. Most businesses have switched over to IT enabled communication and sharing of Information and taken advantage of the new software available through IT for managing their work. Relatively, the Construction Industry had been lagging behind others in adopting these innovations in management. However the industry is making up for its late entry by accelerating the rate of adoption of IT in their work. 1.1 Statement of purpose This paper aims at exploring of importance of IT in the construction industry, and for this purpose, the significant applications of IT utilized by the construction industry are reviewed. Further, the challenges posed by the adoption of these IT technologies are studied in brief followed by suggestions for the future. 1.2 Importance of IT in the Construction Industry The association between design and construction in the industry is of significant interest to the study. Design and Construction personnel’s in an integrated team rely heavily on real time and rapid exchange of information during the execution phase. Also, the project construction team available on-site faces many challenges with regards to proper information management, like documentation and record keeping. Many I.T. innovations have become available which facilitate such rapid exchange of information. These technologies can: Provide current updated drawings and related documents to every member of the team, thus reducing the chances of errors and eliminating the need for re-working. Reduce the time involved in the consultation and approval process through real time transmission of drawings and documents Facilitate communication of changes on real-time basis during design and construction phases of the Project. Maintain all past and current drawings and files in chronological order, with back ups. So as to eliminate the chances of loss of records. Facilitate tracking by maintaining a complete logoff all communications. 2.0 MAIN BODY Today Architecture, Engineering, Construction and Facilities Management are heavily dependent upon I.T. for their mutual interaction as well as for own functions. Innovations in technology that helps sharing and transmitting data has brought about major changes in the industry through research and development in the areas of linking and sharing of information, (Pena-Mora, Vadhavkar, Perkins, and Weber, 1999). Interoperability is defined as the capacity for making the information flow from one point to other. Development and use of standardized information structure forms the foundation on which Interoperability is based. For a highly fragmented industry like Construction (AEC/FM), the emerging inter-operability will hinge on web-based collaboration. The following section presents a study on the topic of web based systems and their utility in the industry. 2.1. INTRODUCTION TO WEB-BASED SYSTEMS Most of the evolution of Electronic Data Interchange had emerged from internal needs of organizations. Naturally the software posed problems and lacked effectiveness when applied to inter—organizational exchange needs of the Construction Projects. The advances in Web-based exchange of information, currently applied to the Industry, facilitates exchange of documents as also the sharing of construction data among participants. Its versatility allows documents to be created, dispatched and received, stored and removed through the medium of the Web. Web based systems offer the use and application of XML for documentation requirements. Normally, the Construction field documents are of various types, (Alshawi and Ingirige, 2002). The documents may be related to architecture, resource, safety, environment, public service, management, monitoring of progress, sub-contract, techniques, quality, etc. The use of XML offers standard document form which is appropriate and efficient for use in the Construction industry. It enables search, retrieval and abstraction of information, besides being compatible in all areas. Moreover, the use of XML does not require any hardware / software. For example, a Sub-Contractor, who does not posses any hardware to receive XML documents, he can view it on the internet when converted into HTML format. The application of XML is extended to design and procurement queries. Another web based XML/EDL Model uses a central data base for managing all documents. This database is able to manage and distribute files, execute automatic formatting of documents, and control a varied set of documents through version control is highly useful in the case of construction industry which has been often criticized for its lack of communication and documentation / record keeping, (Alshawi and Ingirige, 2002). These two types of web based management system form the backbone of every application that has been employed in the construction industry. The following section studies these various IT applications. 2.2 WEB BASED IT APPLICATIONS IN THE CONSTRUCTION INDUSTRY Globally, several industries use the Internet as the preferred medium for effective communication and for exchange of information. The Construction Industry, with its diverse participants in projects could make use of the internet for quick and effective exchange of information among participants and project teams globally. The growing usage of the Internet, for exchange of data and documents, coupled with its ready availability, has ushered in vast improvements in the construction industry in terms of quality and competitiveness, besides enhancing profitability. It has also improved relationship between clients and suppliers and the project teams. The manner in which the Web based applications and other organizational systems are employed by the construction industry to achieve these advantages is discussed here. The benefits gained in this process as also the lessons learned too are discussed. 2.2.1 Web-Based Project Management Systems The realization that the Internet and associated technologies could be used effectively in the Management of Construction Projects led to the initial development of web Based Project Management System (WPMS). WPMS is an electronic project-management system operated through the internet. The system serves the needs of sharing, exchanging and managing the Project data and documents among all participants, at any time in the Project cycle. It speeds up the communication/exchange of information among the participants in the Project Construction, (Nitithamyong, and Skibniewski, 2004). This allows the design team to communicate with the construction team using online maps, mark the areas needing to be altered etc. These features permit the combined working of all in an atmosphere of concurrent consultation and corrective action, via the Web. In Construction industry, the teams have been able to draw benefits from the Web based Project Management System(WPMS) particularly with the ability to have concurrent picture of the Project as it evolved through the process of consultations, modifications and approvals, and the ability to have a track record of all these processes on time relevant record basis. Project Managers benefited from improved ability to manage the records and human resource. Clients got the advantage of being in the know of the actual progress of the Project and of any factors that affected it. They were further enabled to facilitate the timely completion of the projects within the approved Budget. Contractors derived the advantage of bettering their over-all performance in construction through the accumulated experience of managing the work through the consultative process, (Nitithamyong, and Skibniewski, 2004). Secondly, the organizational side benefited greatly from the WPMS. Small and Medium AEC firms could confidently manage their diverse operations with the help of the WPMS from an ASP. This helped in drastically reducing initial costs while maintaining the technological advantage. Thus it is proved that the WPMS is very suitable for this level of firms, who can hardly afford the massive investment required for setting up in-house IT infrastructure., together with the connectivity to the Net, (Nitithamyong, and Skibniewski, 2004). 2.2.2 Enterprise Resource Planning (ERP) Systems ERP systems are a solution to the small firms’ inability to afford elaborate Infrastructure to process data for planning and administering new businesses. The software integrates the various business processes like Procurement, Distribution, Accounting, Finance, H.R, etc. Better connectivity with clients and customers, is an added advantage. ERP facilitates computerization and provides easy access to all project information (at one place) for every department of the project. Further, the versatility of the system to integrate changes easily and also standardize the process if required, (Connor and Dodd, 2000). These changes can be made into the system by project management executives of the project from any part of the world. However, the high cost and long time span for implementing the system is a disadvantage. Cost of installing the system, training period and time span for implementation takes up a long time for benefits to realize in real terms. The highly fragmented nature of the Construction industry makes it necessary for the different segments to be in continuous interaction with allied actors in the scheme of things. The contractor may need to be in touch with the client, the sub contractors, suppliers of raw materials and vendors, Architects /Design Team etc, and so on for each segment, (Peter, 2001). The special features of ERPS facilitate the Companies to use the System to: Faster client response and feedbacks Reinforce strong Supply chain relationships Enhance management ability Faster decision making Eliminate delays in completion, and Reduce Costs of the Project In spite of the advantages, the rate of adoption of this system by construction companies has been very low. The situation is attributable to the high cost of implementation and the long time lag in doing it, (Ferratt, Ahire, and De, 2006). Thus, even though convinced of the benefits from ERPS, the potential users are still looking up to the developers of the System to make modifications with cost that will meet their unique needs in the Construction industry. It is up to the Vendors to address this need and make the ERPs specifically appropriate to the needs of the industry. 2.2.3 Computer Aided Design and Visualization   Design Professionals make wide use of the computerized design software. AutoCAD was once dominating the CAD market. This software has effectively replaced the traditional Drawing Board in the design Office. The function of CAD is to help in creating the Drawings with the help of a series of lines and shapes and text inputs added. CAD facilitates quick editing of drawings once they are made and reviewed and replaced quickly by another set in terms of new inputs, (Macomber, 2003). Thus replication, miniaturization, rotation of the angle of view or scaling up and alteration of the drawings become the most profitable uses of the CAD Software. Storing copies of the drawings at each stage of their evolution, together with the text record of how and why modifications were made from time to time, make the use of CAD eminently valuable as a record creating system as well. Such use aids in later reviews of the Project. Once geometrical parameters of a Building are stored in the CAD software, creation of any number of versions of the drawings from various aspects or points of view becomes possible. 2.2.4 Building Engineering Applications   With the advances in technology, several methods for assessing thermal efficiency, lighting efficiency, acoustic parameters and structural aspects of any given building have been developed. These did not emerge as a continuum or a synergized collection. Therefore these could not be integrated into Project planning software in the early days, (Toole, and Const, 1998). After the advent of Computers, it has now become possible to give all the necessary input into the computer and assess the over all impact of the technology used in Construction or proposed for such use. Applications now in use include Energy Analysis, HVAC design, etc besides Structural analysis and, lighting simulation. This has helped pre-construction evaluation of different alternative models of design for each of the above parameters, before actual construction, and thus arrive at the most appropriate choice of design. ATEAN from Carrier and CARGASW from CLIMASOFT are examples of such software currently in use. These facilitate Climate Impact analysis and appropriate design. CALCULUX for analysis of Lighting design and Building Services design, CYPE INGENIEROS SA for Structural design, COSMOS for finite Elements analysis and DUCTSIZE for Electricity and Water Net designs are other prominent software in use, (Macomber, 2003). 2.2.5 Computer Aided Cost Estimation   A major requirement in Construction Project Planning and Management is the control over costs. To be able to do this, the Contractors and sub-contractors must estimate the costs accurately. Thereafter the actual incidence of costs should be scrupulously controlled through a real time reporting of costs during implementation, (Heng, 2000). There are a number of software used for the purpose like Esti-Mate, and FBS Estimator ARQ. These Cost Estimation Software help make accurate estimates and also to compare actual costs against the estimates. There are other software that assist in estimating quantities of material required and specifications. Such estimates can be integrated with already existing data base on costs for labor, materials and equipment, (Connor, and Dodd, 2000). The benefit derived from this is the elimination of the need to re-enter the data referred to above every time estimates are to be made. In turn, this helps avoiding errors and ensuring clarity in estimates. Data generated through these software are stored in the Central Database and helps in quick decision making. 2.2.6 Planning, Scheduling and Site Management   Skillful management of Human and material resources, following careful planning constitute the basics of success in Construction Industry. Advance planning and evaluation of available options are facilitated by Computer assisted planning and monitoring of execution. There are software that log internal processes and provide a track record for control purpose, (Kong, Heng, Daniel, and Skibniewski, 2004). More advanced software provide features like simulation of actual site level operations and thus avoid possible error of judgment at the planning stag itself. 3.0 CONCLUSION 3.1 Challenges for Adoption of IT in Construction There is very little financial incentive for most players in the Construction industry, to try and implement the use of I.T. The cost involved is high. Relatively low margins in the industry act as deterrent to the wish of those who want to try this approach. Many of them are well conversant with the advantage that can accrue from it. Add to this the fragmented nature of the industry which is also a hurdle. Also, I.T is perceived as a tool that is useful for the contractors only rather than as a tool for sharing of information among all stakeholders in a Project. This acts as a sub-conscious resistance. Thus, the early adoption of I.T .in Construction industry will depend on the realization among all segments of the industry about the advantages to each of them, (Bjork 1999). 3.2 Suggestions for the Future Here are two potential solutions from me for the problem of resistance or reluctance o the adoption of I.T. in this industry: Develop new innovative models of delivery of the service to induce all stake holders to invest in I.T. based solutions. The motivation should primarily be financial. Performance oriented construction contracts could possibly be a solution. Savings in costs derived from better construction management may be shared with the contractor as a direct incentive. Incentive for timely completion of projects can be another option. Such an innovative model of contract. Yet another incentive could be priority in allotting work to those who complete projects on schedule or save time as a work culture. Multi-Project alliance and shared investments can go a long way in hastening the adoption of I.T .based Construction management solutions in this industry. Secondly, there is a need for the industry to integrate across all the segments. Rather than compete among themselves, the existing players should share their relevant expertise with others in the field and thus contribute to the efficient implementation of Projects as value in the industry. I.T can play an important role in bringing about such a change in the work culture. 3.3 Conclusion Despite the existence of a plethora of I.T. enabled services in the Construction industry, there is very low degree of acceptance of these, due to the lack of a perceived advantage to the respective stake-holders, particularly the contractors. Investment in I.T. based solutions to the problems faced by the Construction industry is understood as avoidable or low priority expenditure. The integration of the industry must receive priority. There must be a collective effort to draw benefits from the advantage offered by the I.T revolution, for the best benefit of the industry in the new decade. 4.0 REFERENCES 1. Web-Based Project Management, M. Alshawi and B. Ingirige. A report on web-enabled project management, University of Salford, UK, Available at www.construct-it.org.uk/.../Web%20Enabled%20Project%20Management.pdf, 2002 2. Achieving integration on capital Projects with enterprise Resource Planning Systems, J. Connor and S. C. Dodd, Automation in Construction, Vol 9, issues 5-6 pp 5515-524, 2000 3. IT Strategy For Construction Companies, A Pragmatists Vision, John D. Macomber, Leadership and Management in Engineering, Vol. 3, No. 2, pp. 94-99, 2003 4. Uncertainty and homebuilders adoption of technological innovations, T. M. Toole, J.Const. Energy And Mmgt, 125(4), 1998 5. The AEC Dilemma-Exploring the Barriers To Change, Peter Beck, Leadership and Management in Engineering, p31-36, April, 2001 6. Nitithamyong, P. and Skibniewski, M. J. (2004), Web-based Construction Project Management Systems: How to Make Them Successful? ,Automation in Construction, 13(2), 491-506 7. Kong, C. W., Li, Heng, Hung, P. L., Shi, W. Z., Daniel, C. L., and Skibniewski, Mirosaw (2004), Enabling Information Sharing Between E-Commerce Systems for Construction Material Procurement, Automation in Construction, 15(1), 84-97 8. Connor, J., and Dodd, S.C. (2000). “Achieving integration on capital Projects with enterprise Resource Planning Systems” Automation in Construction, Vol 9, issues 5-6 pp 5515-524 9. Ferratt, T. W., Ahire, S., and De, P. (2006). "Achieving Success in Large Projects: Implications from a Study of ERP Implementations." Interfaces, INFORMS, 36(5), 458-469. 10. Pena-Mora, F. Vadhavkar, S. Perkins, E. and Weber, T. (1999). Information technology planning framework forlarge-scale projects. Journal of Computing in civil Engineering, October, 226-237 11. Heng Li (2000). The IT performance Evaluation in the Construction Industry. Proceedings of the 33rd Hawaii International Conference on System Sciences-2000, IEEE, 1-9 12. B Bjork B-C. (1999). Information Technology in Construction: domain definition and research issues . International Journal of Computer Integrated Design and Construction, SETO, London, 1999(5), 3-16 Read More