Decision-making framework for selecting ICT-based construction logistics systems

Abstract

Purpose – The purpose of this paper is to discuss an integrated decision analysis framework for the investment justification of implementing alternative information and communication technology (ICT)-based logistics systems in the construction industry so as to enhance the decision-making process in selecting the best alternative. Design/methodology/approach – An integrated framework is proposed that is composed of a set of interrelated evaluation and analysis techniques that allow the identification and quantification of costs, benefits and risks involved in implementing ICT systems to mitigate problems that hinder the efficient operation of construction logistics. Such techniques include decision trees and multi-attribute decision-making under uncertainty that can be applied to the logistics planning of any new build construction project. Findings – The probabilities of providing benefits vary among the alternatives, and the probabilities will replace the uncertainties surrounding the impacts of the alternative ICT systems in addressing the identified construction logistics problems with chance events so as to estimate the expected cost of each alternative with respect to each selection attribute. Practical implications – This paper shows that it is almost certain that the analysed alternative ICT system will provide benefit because its probability of benefit is almost equal to 1. Originality/value – The framework captures the existing problems of logistics in construction process, potential solution that can address the problems through the implementation of ICT systems and the decision-making process in the selection of appropriate ICT solution. The output of the framework will help to make knowledge-based decision in selecting the best ICT system for addressing construction logistics problems.