TY - JOUR
T1 - A new blockchain system design to improve the supply chain of engineering, procurement and construction (EPC) companies – a case study in the oil and gas sector
AU - Amiri Ara, Rashid
AU - Paardenkooper, Klara
AU - van Duin, Ron
N1 - Accepted Author Manuscript
PY - 2021
Y1 - 2021
N2 - Purpose: This paper aims to propose a new blockchain system design to improve engineering, procurement and construction (EPC) companies’ supply chain for constructing oil and gas infrastructure, by mitigating cost and time inefficiencies. Design/methodology/approach: A case study analyses the supply chain of a sample EPC company. First, a literature review is conducted to explore the subject in academic literature. Second, information flows are mapped using responsible, accountable, consulted and informed analysis and cross-functional process mapping. Third, inefficiencies are identified. Fourth, the root causes of the inefficiencies are pinpointed using fishbone and five-times-why analysis. Fifth, a comparison is made between the linear and the blockchain information system via force-field analysis. Sixth, a specific blockchain system design is identified based on three external expert interviews. Finally, the new system is designed and a cost-benefit analysis is conducted. Findings: Major cost and time inefficiencies in oil and gas infrastructure developments are caused by a poor information flow in the supply chain. The new blockchain system design is a feasible solution, reducing cost inefficiencies by 12.4% and operation lead-times by 36.5%. Research limitations/implications: The confidentiality of the sample EPC company’s information represents a limitation. Originality/value: The research introduces a new blockchain system design, reducing cost and time inefficiencies in the project-development supply chain, including implementation processes.
AB - Purpose: This paper aims to propose a new blockchain system design to improve engineering, procurement and construction (EPC) companies’ supply chain for constructing oil and gas infrastructure, by mitigating cost and time inefficiencies. Design/methodology/approach: A case study analyses the supply chain of a sample EPC company. First, a literature review is conducted to explore the subject in academic literature. Second, information flows are mapped using responsible, accountable, consulted and informed analysis and cross-functional process mapping. Third, inefficiencies are identified. Fourth, the root causes of the inefficiencies are pinpointed using fishbone and five-times-why analysis. Fifth, a comparison is made between the linear and the blockchain information system via force-field analysis. Sixth, a specific blockchain system design is identified based on three external expert interviews. Finally, the new system is designed and a cost-benefit analysis is conducted. Findings: Major cost and time inefficiencies in oil and gas infrastructure developments are caused by a poor information flow in the supply chain. The new blockchain system design is a feasible solution, reducing cost inefficiencies by 12.4% and operation lead-times by 36.5%. Research limitations/implications: The confidentiality of the sample EPC company’s information represents a limitation. Originality/value: The research introduces a new blockchain system design, reducing cost and time inefficiencies in the project-development supply chain, including implementation processes.
KW - Blockchain
KW - EPC company
KW - IoT
KW - Oil and gas
KW - Smart contract
KW - System design
UR - http://www.scopus.com/inward/record.url?scp=85116711127&partnerID=8YFLogxK
U2 - 10.1108/JEDT-01-2021-0047
DO - 10.1108/JEDT-01-2021-0047
M3 - Article
AN - SCOPUS:85116711127
SN - 1726-0531
VL - 20
SP - 887
EP - 913
JO - Journal of Engineering, Design and Technology
JF - Journal of Engineering, Design and Technology
IS - 4
ER -