Lean Theory-Based Construction Supply Chain Management System

With the theory of Supply Chain Management(SCM) successfully being used inmultiple industries, the construction industry begins to implement the model of SCMin China. But the construction industry has some characteristics, for exampletraditional. So SCM still has many difficult problems in China. It seriously impacts onthe efficiency of construction project management. And it also impacts on economicbenefits of China’s construction enterprises. Lean Thinking is combined with thetheory of SCM in the paper. And the paper is used to the construction industry. And ituses Lean Thinking to solve many problems in SCM. In other words, by implementingLean Supply Chain Management(LSCM) to minimize and eliminate waste of supplychain. In order to reduce supply chain costs, and promote the structural optimization ofthe construction supply chain. Thus improving overall competitiveness of theconstruction supply chain and building the company’s core competitive advantage inChina.This article is divided into five major sections. The first part describes the basictheory of Lean Thinking and Supply Chain, and analyses the main problems in thecurrent Construction Supply Chain Management(CSCM) in China, and combines withthe characteristics of the construction supply chain. Thus proposing the necessity ofLean Thinking which is used to the CSCM, and the applicability of Lean Thinking inCSCM from the quality, schedule, cost of project management. The second partfocuses on building SCM framework of Lean Thinking. It contains five aspects. Theyare lean initiatives, lean design, lean procurement and supply, lean construction, leanmarketing. And it introduces many techniques and measures which can be taken ineach stage. Such as, Last Planner System, the CM Design, JIT Feed and so on. Thethird part details the specific implementation of the LSCM from four aspects which arestrategic management, network building, organizational management and informationmanagement. The fourth part builds the performance evaluation index system ofCSCM. And through using the analytic hierarchy process to set the weight of eachindex. After comprehensive analysing many kinds of performance evaluation methods.The paper selects benchmark, which is a simple, convenient, more targeted ofevaluation results, to evaluate the LSCM. The fifth part combines with TH Industrial Group to instance demonstrated.