Integrating Performance Measurement Systems Into the Global Lean and Sustainable Construction Supply Chain Management: Enhancing Sustainability Performance of the Construction Industry

Integrating Performance Measurement Systems Into the Global Lean and Sustainable Construction Supply Chain Management: Enhancing Sustainability Performance of the Construction Industry

Gamze Tatlici (Istanbul Technical University, Turkey) and Begum Sertyesilisik (Istanbul Technical University, Turkey)
DOI: 10.4018/978-1-5225-8970-9.ch017


The construction industry is one of the industries that have a great impact on the economy. A construction supply chain (CSC) is an important process affecting the circular economy (CE) and sustainability in practice. In order to analyze the efficiency of CE and CSC, a performance measurement system (PMS) is needed. At such a point, adopting a PMS to a supply chain at relatively early stages of a project could lead to sustainable supply chain management (SCM). Collaboration between all parties such as designers and contractors will be advantageous to gain competitiveness in the sector. This chapter aims to determine the need of PMS adaptation to construction supply chain process for sustainable and lean construction supply chain management based on the literature review. This chapter is expected to be beneficial for academics, researchers in the relevant field as well as policy makers and professionals.
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In the industrial ecology practice and literature, the significance of the CE studies has been noted awhile. This discourse was considered for developing the concepts of green and sustainable SCM (Ehrenfeld, 1995). Circular economy (CE) is gaining importance and it is becoming important rising trend in the world. CE can be enabled by the sustainable production process. For this reason, the two concepts (e.g. CE and sustainability) should not be considered separately due to their interactions. Pushing the limits of environmental sustainability, particularly in industries that focus on energy and materials, requires determining methods of merging sustainable supply chain strategies and CE principles and understanding its complete implications related to environment and economy (Nasir et al., 2017). One of the sectors that show the most dramatic results of circular economy and sustainability in practice is the construction sector. The contribution of the construction sector to the CE should not only be considered as the final product, but it needs to be sustainable in the production and supply chain process. In particular, construction SC process and hence construction SC problems form the majority in economy due to its complexity.

Key Terms in this Chapter

Sustainability: Sustainability is the continuations of the activities that will be carried out after the termination of the projects with start and end time.

Supply Chain: The supply chain is the process of starting all products and services from the supplier to the customer at the last stage; it is one of the crucial points of the companies covering all activities, human resources, technology, company structures and resources.

Competitive advantage: The competitive advantage is a strategy of everything that will stand out from your competitors which will provides a unique authority according to competitors: for instance, it may be the quality of company’s product or service, may be a feature that cannot be copied or differentiated from company, or it may be brand reliability, recognition or price.

Green Procurement: Green procurement is a type of procurement management where strategies for producing environmentally responsive products or services are combined.

Performance Measurement Model: Performance measurement is a way of providing information and a method of objectively measuring how tasks are performed in terms of cost, quality and time in a product, service or process.

Construction Supply Chain Management: Construction supply chain management; is to ensure that the internal resources of the construction are integrated effectively with external resources.

Circular Economy: The circular economy is the approach that aims to using natural resources and ecosystems more effectively and also distinguish economic growth from these sources.

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