Application of lean principles on supply chain management in construction through system dynamic modeling

Supply Chain Management (SCM) is a concept which originates initially in manufacturing industry. 'Supply' refers to the ordering, expediting, and delivering of key project equipment, labor, information and materials. 'Chains' represents the idea of links within and between factors (people and organizations, and processes). Supply Chain Management (SCM) is considered as the management of all activities required to transform a raw material into a final product in the most time-effective and cost-effective way possible. SCM starts with acquiring raw material and is carried on through the production and distribution of the product to the final customer. The supply process in construction often has a large quantity of delays and cost overruns related to inadequate management tools and methods. SCM can be used as a management methodology to improve the construction industry performance. This study aims to present a system dynamic (SD) model for supply chain process in construction. Furthermore, Lean Principles will be applied on the SD model to improve the efficiency and eliminate the wastes and buffers.