Construction is a Manufacturing Process - Part 2

Most of us (reading this post) work in the construction industry, or the AEC (Architecture, Engineering, and Construction) to put it more broadly.  Whether you are a designer or builder, the goal is generally always to construct (let’s ignore academic architects for the time being).  And in construction, the ideal process includes the procurement, delivery, and installation of materials in a non-disruptive sequential order, per the design specifications, that together create a functional system satisfying the design intent (that’s a mouthful).  In short, we want to get the right material on-site at the right time so that it can be installed by the contractor without screwing up work performed simultaneously by other contractors – get in and out as quickly as possible.  “Getting in” is easy, it’s the “getting out” part that is a challenge.  “Getting out” isn’t just turning on power and walking away, it’s the successful integration of all components whether its envelope layering or boiler feedwater controls.  It is this 10% of a contract requirement that can be the most stubborn and costly for owners and contractors.  Does the end product meet or exceed the design intent?  Is the owner satisfied?  Here’s how thinking like a manufacturer can help.

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As mentioned in the prior post, construction is a project type manufacturing process with the end product a building, facility, or structure. Traditional manufacturing, out of necessity, has become more and more efficient at delivering the same product at a higher quality for less. They have taken the deep dive down the lean rabbit hole and are not looking back…

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Here are a few ways we can continue to align construction with traditional manufacturing and shatter efficiency targets:

  1. Expand the use of 3D CAD.

    1. Collaborative designing and BIM accelerate the design process, expediting iterations and avoiding major material conflicts.

  2. Incorporate testing requirement expectations.

    1. Commissioning has become more common, but still not every contractor expects it. Embed it in the contract and specifications before issuing to bid.

  3. Make clear ALL expectations.

    1. Relieve some of the contractor errors or coordination complications by clearly communicating every expectation and watch costs come down. If everyone is making money, the market will weed out the greedy.

  4. Start tracking costs better.

    1. Knowing at a granular level that the chiller cost on job Y was 2x the cost on job X, or the labor to drywall 1000 SF was 1/3 the cost on job W is very powerful. Eliminate the mystery behind estimating to achieve optimal value.

  5. Prefab more components.

    1. With BIM, many field fabricated components can be shifted to a shop environment where quality control is heightened.

  6. Build modular blocks in controlled environments.

    1. Take prefab one step further by building self-supported rooms or spaces offsite, rigging into place at site, constructing the superstructure and finishes simultaneously.

  7. Introduce more industry standardization.

    1. Both on the material side and the technology side (how many different construction management softwares do we need to learn?)

  8. Utilize Integrated Project Delivery (IPD) or other multi-party contracts.

    1. These are the best mechanisms for changing how things get built.

  9. Accept the truth behind all meetings and re-evaluate.

    1. When you realize most meetings are held to inform 1-2 people, you realize there is a better way to approach the problem of communication.

  10. Lastly, teach architects that it’s OK not to be different all the time!

    1. Seriously, not in all cases, but if architects had a better understanding of the implications of their decisions, I bet our built environment would look very different.

Construction is a Manufacturing Process - Part 1

Image courtesy of Guerdon Modular Buildings

Image courtesy of Guerdon Modular Buildings

In the manufacturing sector, “process selection” per Jacobs and Chase, authors of Operations and Supply Chain Management, refers to the “strategic decision of selecting which kind of production processes to use to produce a product or provide a service.”  The process is generally selected based on production volume which is a function of customization.  If you produce high margin, low volume product, manual assembly may be a good fit.  If you produce low margin, high volume product, a continuous assembly line is probably best.

Manufacturing process can be placed on a spectrum in order of production volume and customization:

  1. Continuous Process.  Highest yield, typically a commodity.

    1. Ex. Petroleum refinery, chemical processing, etc.

  2. Assembly line.  Work processes are arranged according to the progressive steps which the product is made.

    1. Ex.  High volume items where specialized process cannot be justified.

  3. Manufacturing cell.  Dedicated area where products that are similar in processing requirements are produced.

    1. Ex.  Metal fabrication, computer chip manufacturing, small assembly work.

  4. Workcenter/Job Shop.  Similar equipment and functions are grouped together.

    1. Ex. Small part quantity toy where stamping, sewing, and painting are performed separate from assembly.

  5. Project.  Lowest yield, mostly all custom product.   Manufacturing equipment is moved to the product rather than vice versa.

    1. Ex. Home, plant, building, bridge construction; movie shooting lots

When was the last time you thought of a construction project as a manufacturing process?  Probably never.  Why do we think that is the case?  And is it not right to think that way (why does it matter)?

Courtesy of GettyImages

Courtesy of GettyImages

I’ve been thinking a lot about these questions over the past year as I’ve floated in and out of multiple construction projects.  As a consulting engineer I perform project work.  We are hired for a defined task or tasks, we execute on that task, and we then move on.  And when I’m a team member of these projects, I’m party to the confusion, headaches, and wastefulness that so often accompanies construction.  So as a value-oriented individual, I can’t help but notice as a manufacturing process, we’re so far removed from typical manufacturing culture including all of the efficiencies they offer.

Think about what a “project” manufacturing process might qualify as – a standalone, custom/unique assembly of high quantities of components in a complex sequence – which is basically a building or facility.  If our “product” is a house or lab or office, the process to “assemble” (build) is no different than the process to “assemble” (produce) an automobile or can of soup or a gallon of gasoline.

I believe it, and so do some forward-thinking individuals at the Lean Construction Institute, but construction has been dogged by hardened behaviors resistant to change.  Anyone from the lowest level laborer to the project executive can point to areas of gross wastefulness in construction.  When we think about construction like Ford thinks about SUVs, Pepsi about soda, or Johnson & Johnson thinks about shampoo, you start to realize why WE SHOULD think this way (and why it matters)! Per LCI, “Construction labor efficiency and productivity has decreased, while all other non-farming labor efficiency has doubled or more since the 1960s. Currently, 70% of projects are over budget and delivered late. The industry still sees about 800 deaths and thousands of injuries per year. The industry is broken.”