Construction Equipment Industry Research Articles

Connecting the users and providers in the construction equipment industry: A framework motivated by the ride sharing industry

Connecting the users and providers in the construction equipment industry: A framework motivated by the ride sharing industry

A Proposed Knowledge Management System to Improve the Business Growth At PT. Multi Guna Equipment

The construction equipment industry in Indonesia, in which the lifting equipment is a part of, is showing promising growth with an estimated value of 4.5 billion US dollars in 2028, growing at a compound annual growth rate (CAGR) of 6.79% during the period of 2021-2028. PT. Multi Guna Equipment (PT. MGE) is one of the authorized distributors of lifting equipment specializing in reach stackers and harbour mobile cranes from Konecranes – a company based in Finland. In recent years, PT. MGE has experienced stagnant business growth, despite the enormous potential demand for lifting equipment in Indonesia due to the numerous construction projects that are a priority for the Government. The obstacles that contribute to the stagnant business growth of PT. MGE are related to the absence of a system to manage knowledge in the company. In light of these circumstances, the company needs a structured and effective system for managing knowledge, which is through the implementation of a Knowledge Management (KM) system. In doing this, the research is based on two research questions. The first is how can a knowledge management system be proposed to improve the business growth of PT. MGE, and the second is what is the implementation plan for the proposed knowledge management system. These two research questions will be answered using theories related to knowledge, knowledge management, and two knowledge management frameworks, namely People, Process, Technology (PPT) and Socialization, Externalization, Combination, Internalization (SECI). Because a qualitative method is used in this research, data is collected through interviews and observations, which are then analyzed using thematic analysis. The results of data collection show that there are several issues related to the PPT and SECI frameworks. These issues range from the limited sales knowledge and sales skills possessed by salespeople, the lack of knowledge sharing processes within and between teams, the lack of proper knowledge transfer, difficulty in accessing knowledge and information due to manual access, and others. Through the utilization of PPT and SECI frameworks, the author was able to design a knowledge management system by formulating several tools, for example, Coaching, Training, Knowledge café, Lesson-learned documents, K-based exit interview, repository, and e-learning. With a total of 13 (thirteen) knowledge management tools or techniques, the company now has the ability to identify the knowledge needed, capture the knowledge, store the knowledge, share the knowledge, and effectively utilize knowledge and information which can improve the organization’s performance, enhance decision-making processes, and foster innovation and collaboration, thereby gaining a competitive advantage in the lifting equipment industry which ultimately contributes greatly to the growth of the company. For the knowledge management system implementation process, it will be divided into 4 (four) stages: Pre-Adaptation, Adaptation, Implementation, and Evaluation to ensure that the knowledge management system is implemented effectively, its impact can be measured, and areas for improvement can be identified to make necessary changes. Implementation will begin on the second half of 2023, to be specific in August 2023, and there will be a dedicated Person In Charge (PIC) for all knowledge management initiatives to monitor the progress and ensure the sustainability of this system.

A VALUE-DRIVEN DESIGN APPROACH FOR THE VIRTUAL VERIFICATION AND VALIDATION OF AUTONOMOUS VEHICLE SOLUTIONS

AbstractAutonomous vehicle solutions (AVS) are regarded as a major enabling technology to support the realization of 'total site solutions' in the construction equipment industry. Their full-scale deployment is hindered today by the need to test autonomous driving capabilities against the varying conditions an AVS is expected to be exposed to during its lifetime. Therefore, using virtual simulation environments is common to overcome the cost and time limitations of physical testing. A caveat in this virtual verification and validation (V&V) work is how to trade off the ‘realism’ of the V&V output (using high-fidelity models across many scenarios) against computational time. This research investigates expectations and needs for value-driven decision support in the virtual V&V process, proposing an approach and a tool to raise awareness among decision-makers about the value associated with using selected simulation models/components in the virtual verification and validation task for AVS. Verification activities performed on the initial prototype show that its main benefit lies in facilitating cross-domain negotiations and knowledge sharing when negotiating the desired features of the virtual simulation environment.

A joint modeling and exploratory framework for intra-firm collaboration within construction and mining equipment industry

PurposeIn this research, collaboration attributes related to the firm's intrinsic and extrinsic facets at pertinent levels (i.e. enterprise, strategic, operational, and tactical levels) for construction equipment OEMs (original equipment manufacturers) operating in India have been quantified and modeled.Design/methodology/approachFor modeling the intra-firm collaboration at respective organizational levels, relevant attributes have been populated employing literature review followed by subsequent validation from pertinent focus groups. The focus groups comprising professionals working in the construction and mining equipment industry in India aided us in estimating the extent of interdependencies and influences within/amongst collaboration attributes. The collaboration attributes and respective interdependencies/influences are modeled employing the concept of graph theory wherein the individual attributes are represented using vertices and influences/interdependencies are represented using edges. The collaboration indices resulting from the variable permanent matrix have been derived as well.FindingsScenario and subsequent sensitivity analysis are performed. This research discusses the significance and aspects related to various collaborative attributes and the interrelations amongst them. Further, the research also evolves quantitative measures of collaboration indices at enterprise, strategic, tactical and operational levels by employing a graph-theoretic approach (GTA). The authors have also extricated and discussed a number of meaningful implications from both the perspectives of interorganizational relationships (IORs) and the normative theory of organizations using a cross-case analysis of five firms having operations in India.Originality/valueThe research would aid organizations (particularly those belonging to the construction equipment sector) measure the efficacy of collaboration in respective value-chains at strategic, tactical and operational levels. From the theoretical perspective, the integration of the IORs and normative theory of organizations enables looking at the intra-firm collaboration problem from a multi-dimensional standpoint involving activities, performance measures, action initiation, communication, shades of top management, level of activity, etc.

Pushing Digital Automation of Configure-to-Order Services in Small and Medium Enterprises of the Construction Equipment Industry: A Design Science Research Approach

In order to efficiently transform business processes (such as product design, product engineering, production, logistics, sales, deliveries, etc.) into digitally automated processes, new concepts have been introduced in both the manufacturing and construction industries. Under the term Industry 4.0, promising possibilities for high-performance production processes are emerging based on e.g., digital twins and cyber-physical systems. However, the construction industry lags behind in adapting these ideas, and is still facing severe productivity deficits. This paper addresses these deficits by assessing the hypothesis of Building Information Modeling—as the digital twinning methodology in construction—representing a key driver for digital automation and thus enabling more productive processes. To this end, we apply a design science research approach to develop artefacts using computational methods for the automation of business processes in a configure-to-order industry partner. The evaluation is done in the context of a pilot project together with this industry partner. The findings obtained in the pilot project revealed time savings in the phases of bid estimation and work preparation. Based on the findings, the applicability and utility of the suggested approach are discussed and allow for the conclusion that Building Information Model data can usefully streamline and automate many processes at the interface between design and production, if structured and preprocessed purposefully.

Economic Nationalism in All Its Variety: The Case of China’s Construction- and Railway Equipment Industry

ABSTRACTThis article shows how China became a global competitor in the railway- and construction equipment industry by using a combination of defensive and offensive mercantilist policy tools. While many scholars in IPE have recognized that economic state intervention is still commonplace, the literature focusing on economic nationalism has failed to grasp its multifaceted feature. By confusing economic nationalism with protectionism, the possibility of outward-looking measures within a mercantile strategy has been neglected. The research that does recognize the ability of states to combine global economic integration and continued market intervention, demonstrates an empirical bias towards strategic emerging industries and state-owned enterprises. This article includes the role of offensive economic policy measures as well as less strategic sectors and private- owned enterprises in China’s mercantile strategies.

Iterative value models generation in the engineering design process

Value models are increasingly discussed today as a means to frontload conceptual design activities in engineering design, with the final goal of reducing cost and rework associated with sub-optimal decisions made from a system perspective. However, there is no shared agreement in the research community about what a value model exactly is, how many types of value models are there, their input–output relationships and their usage along the engineering design process timeline. Emerging from five case studies conducted in the aerospace and in the construction equipment industry, this paper describes how to tailor the development of value models in the engineering design process. The initial descriptive study findings are summarized in the form of seven lessons learned that shall be taken into account when designing value models for design decision support. From these lessons, the paper proposes a six-step framework that considers the need to update the nature and definition of value models as far as new information becomes available, moving from initial estimations based on expert judgment to detailed quantitative analysis.

Effective management of performance-based contracts for sustainment dominant systems

Performance-based contracting (PBC) is becoming the favoured procurement strategy among suppliers and customers of sustainment dominant systems (SDS) such as aircraft, weapon systems, mining equipment, etc. Under a PBC, supplier profit is linked to how well the SDS meets customer expectations in terms of relevant performance metrics. System availability is a common, contractually agreed upon performance metric that measures customer expectations. In this paper, we analyse performance contracts from the perspective of the supplier, where system availability serves as the performance metric. We develop single-period and multi-period supplier performance models and demonstrate how these models are used to maximise a supplier's profit in the context of a PBC. We provide empirical evidence from a mining and construction equipment industry and demonstrate how PBC overcomes the information asymmetry and moral hazard that is common in SDS principal agent models. Practically, our models can be used to increase the likelihood of success for both the supplier and the customer when they embrace PBC. Our main contributions include establishing the optimal availability that an original equipment manufacturer (OEM) can provide by considering their own probability of loss; analysing the properties of an OEM's future net profit function using first order autoregressive moving average (ARMA) process; and performing marginal analysis and providing bounds for the net profit function for linear and non-linear revenue functions. We derive a relationship between macro-level availability and micro-level parameters such as failure rate, fleet size and base stock levels.

Unity is strength: A study of supplier relationship management integration

Researches on the supply chain management within the last decade demonstrate that business processes integration can increase the performance effectiveness and efficiency across the chain. This study intends to investigate the integration of the supplier relationship management (SRM) process between the manufacturer and its first upstream tier of suppliers within the construction equipment industry. This research also strives to identify the potential obstacles to the SRM integration and provides solution suggestions to overcome these barriers. In this regard, the review of the literature and subsequent analyses of the empirical findings from European construction equipment manufacturers illustrate that the SRM process integration can take place through the integration of its several sub-processes into strategic and operational characteristics. In this context, the lack of goal congruence, commitment, and trust between the manufacturer and its supplier are the major potential barriers to the SRM integration.

A Theoretical and Practical Approach to Geometrical Part Assurance

Metrology is the science of measurements; production engineering metrology is the science of applied metrology in production and in product realization. In this paper the automotive, construction equipment and aerospace industry are particularly addressed. One theoretical and practical approach to geometrical part quality assurance focusing on manufacturing processes and systematic work and use of objective, value adding production engineering metrology is proposed. This paper aims to describe a practical approach on how to carry out geometrical assurance of parts produced in manufacturing processes using traditional production methods. One example using machining, i.e. turning, of a part is used to explain this approach.

現場志向に基づいた顧客価値創造のためのビジネスモデル

In this paper, we discuss manufacturers' value creation through innovation. In the current situation, where representation of the value added in the value chain by smile shaped curve advances in manufacturing industry, it has become important providing services and solutions with higher customer value to the customers, in addition to basing on the highly competitive, specific-function-featured products. In order to achieve it, while we define the specific-function-featured products as the 0th area, we propose to improve the customer value creation in the business models of the two regions, the first area: services, the second area: solutions, in the value chain downstream. Through examples in construction and mining equipment industry, telematics of construction equipment and autonomous haulage system in mining, it is shown that it is also possible in the value chain downstream to create the customer value and to expand business areas. In order to realize this business model, it is important to reveal the underlying customer needs and problems and to solve the technical problems well-balancing own technology and open innovation.

A comparative study of organisational integration and NPD process proficiency in the heavy construction equipment industry: past and present

This study investigates new product market success in the heavy construction equipment industry over the past 20 years in the USA. This research examines the relationships between new product market success and (1) the proficiency with which new products are developed and (2) the degree of organisational integration among various groups of people. This study addresses three major research questions regarding the relationships among these three primary variables and whether Time Period (1993 and 2013) moderated the relationships between new product market success and (1) new product development (NPD) process proficiency and (2) organisational integration. It was found that NPD process proficiency significantly impacts new product market success in both the 2013 and the 1993 time periods. However, no moderating effects were found regarding the individual time periods but a direct effect was found regarding the lapse of time between 1993 and 2013. Study implications and recommendations are provided for NPD managers.

A MODERATION STUDY OF ORGANISATIONAL INTEGRATION AND NPD PROCESS PROFICIENCY IN THE U.S. AND KOREAN HEAVY CONSTRUCTION EQUIPMENT INDUSTRIES

This study explores the potential differences between the relationships relating the market success of new products, the proficiency with which new product development (NPD) activities are executed during NPD processes, and the degree of organisational integration among various groups during NPD processes in the (U.S.) and Korea. This research addresses three major research questions: (1) Does NPD process proficiency impact new product market success in U.S. and Korean firms? (2) Does organisational integration impact new product market success in U.S. and Korean firms? and (3) Does country moderate the relationships between NPD process proficiency and new product market success, and between organisational integration and new product market success? This study is based on NPD data related to new product projects from the heavy construction equipment industries in the U.S. and Korea. Based on our combined model, it was found that NPD process development proficiency significantly impacts new product market success but organisational integration does not impact new product market success. Additionally, it was found that country moderates the NPD process proficiency-NPD market success and NPD organisational integration-NPD market success relationships. Study implications and recommendations are provided for NPD managers based on this research.

Issues associated with welding and surfacing of large mobile mining equipment for use in oil sands applications

Welding for large mobile mining equipment commonly used in the oil sands mining industry represents a unique aspect of the construction and mining heavy equipment industries. Low volume, high production capacity dominates, differing from the high volume, low production typical of the on-highway cartage automotive industry. The use of robotic welders is increasing but remains predominantly avoided due to the high cost associated with fixturing and positioning of large structural components, compounded by tolerance concerns. The main issues facing weld performance are fatigue and wear. A large portion of the ultraclass large mobile mining equipment industry focuses on fast field repair techniques, dominated by shielded metal arc welding, while in shop repairs, gas metal arc welding remains the preference.

An application of European Customer Satisfaction Index (ECSI) in business to business (B2B) context

Purpose – This paper aims to examine the most important antecedents of customer loyalty in business-to-business (B2B) context using European Customer Satisfaction Index (ECSI) model. Design/methodology/approach – A questionnaire is designed consisting of measures of customer loyalty gathered mainly from previous related studies. A survey of business customers in construction and mining equipment industry in Iran is conducted, and a total of 90 responses are obtained. The collected data are analyzed according to the structural equation modeling technique using partial least square path modeling software. Findings – The ECSI model shows sufficient explanatory power in explaining loyalty in the B2B context. Adding trust to the original model leads to a better explanation of loyalty in the proposed model. In this model, corporate image is the main route to predict loyalty, while satisfaction, complaint handling and trust also are important. Although there is no direct effect of perceived quality, perceived value and expectation on loyalty, their total impact is considerable which is mediated through satisfaction. Research limitations/implications – The research should be expanded to other B2B sectors to validate its findings in different industries. Future research can also assess the impact of moderating variables. Originality/value – Most previous customer loyalty models concern business-to-consumer (B2C) rather than the B2B context. Moreover, research examining the suitability of the ECSI model in B2B is scarce. This paper addresses these shortcomings by examining a holistic customer loyalty model which incorporates some overlooked constructs as corporate image, expectation and complaint handling from the ECSI model. The proposed model, also adds trust which is not incorporated in national indices despite its importance in predicting loyalty.

Product feature and functionality driven integrated framework for product commercialization in presence of qualitative consumer reviews

The purpose of this research is to aid manufacturers operating in multiple market segments (characterised by a number of product variants) to formulate and synchronise their product commercialisation strategy. Product commercialisation is primarily characterised by upgrading/launching product features aimed at meeting customer’s preferences, while at the same time, enabling the enterprise to achieve its major commercial objectives. Firstly, by employing the semi-automated crowd sourcing-based approach and considering qualitative customer evaluations, customer-preferred product features have been identified and their relative weights determined. Thereafter, a detailed mixed integer quadratic programming formulation has been evolved taking into account pertinent commercial objectives of the enterprise and engineering-level constraints of the product. The developed formulation has been solved using the Branch and Cut method of commercial solver, LINGO. Detailed sensitivity analysis has been carried out, followed by populating key managerial insights. The proposed framework has been illustrated using a real-life case example of operator cabin used in heavy construction equipment industry. Our focus has been on development and illustration of devised framework; hence, the superiority of results has not been claimed. Better results may be obtained using other heuristics/algorithms.

굴삭기 제조 공정의 환경성 평가를 위한 LCA 적용

The purpose of this study is to evaluate environmental impacts from the manufacturing process of excavators by using LCA, and improve design and manufacturing process. This study was analyzed by each process through characterization and normalization. The result shows that assembly and fabrication process has the highest environmental impact on Abiotic Resource Depletion, Global Warming, Photochemical Oxidant Creation, while painting and finishing process has the highest environmental impact on Ozone depletion, Eutrophication, and Acidification. This shows that environmental impact of manufacturing excavators came from using much steel and energies in accordance with the usage. Therefore, recycle of steel and development of new material is important for sustainable construction equipment industry.

Study of Energy Recycling in Electro-Hydraulic System

Environmental and energy issues demand the construction equipment industry to develop more efficient and energy saving machines as they have done to the automotive industry in the last decade. This energy of traditional excavator is lost in the form of heat energy. Heavy earth moving equipments such as excavators, loaders and forklift trucks have unique power train mechanism, thus the focus on important issues like efficiency improvement or energy savings holds great value. Hence, the need of the hour is to develop machinery which can match the necessities and challenges of the ever evolving industry in terms of energy saving management. In this context, hybrid excavators have been ushered in currently. Here system translates the arm/boom/buck’s potential energy into electrical energy and then the electrical energy is stored in a storage device. It develops a set of energy management strategy to make the recoverable energy usage efficiently. The advancements in the field of heavy machineries holds key in future of hybrid excavators. Keywords-hybrid excavator; potential energy recovery; arm; energy saving

SMISMO 밸브 구조를 채용한 유압식 굴삭기의 평탄화 작업을 위한 휴리스틱 접근

SMISMO valve configuration is now starting to draw attention of the researchers of the construction equipment industry to increase the fuel efficiency of their equipment like excavators and wheel-loaders. An open-loop control strategy for grading operation of hydraulic excavator systems using SMISMO valve configuration is investigated in this paper. Tabor`s algorithm for 1 d.o.f. SMISMO system under the assumption of quasi-static operation is revealed as not adequate for multi d.o.f. system with large moment of inertia even though the motion of the system is slow. New parameters are proposed in this paper. It modifies Tabor`s open-loop control strategy for the grading operation of hydraulic excavators using SMISMO valve configuration. A simulation-based parameter tuning method is also proposed. It uses GA (Genetic Algorithm) to find the best parameter values. Simulation study for a practical hydraulic excavator shows the validity of the proposed open-loop control strategy.

How large Chinese companies establish international competitiveness in other BRICS: The case of Brazil

Based on an abductive approach, a case study is performed on two Chinese multinational corporations (MNCs) operating in the construction equipment industry. These firms do not yet compete directly with major global firms. The reason for this is that Chinese firms have mainly built up international competitive strength in the low-price segment. A major result is a theory on the initial internationalisation strategy of Chinese firms. The main strategic counter-move by European MNC and other major incumbents seems to be to enter the low-price segment in emerging markets, for example, by acquiring local Chinese brands.