The Case for Industrialization of the Construction Industry

By Akio

This post is an excerpt from the paper, “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and  Dr. Heather Moore of  MCA Inc.

Like many other industries the construction industry is under constant pressure to improve productivity, reduce cost, and minimize waste in the operation.

While the productivity in the manufacturing industry has improved by four hundred percent (400%) over the last century, the construction industry’s productivity has, in the best case, stayed flat or turned negative.

Tweet: Problem: Over the last 100 yrs productivity in the #AEC industry has, in best case, stayed flat. Solution: http://ctt.ec/mf0SU+ @3DSAECClick to tweet: “Problem: over the 100 yrs productivity in the #AEC
industry has, in the best case, stayed flat. Solution: industrialization”

One main reason for the improvement of the manufacturing and other industries’ productivity is the “Industrialization” of those industries. Industrialization of any industry will rely on the following five factors:

  1. Management of Labor
  2. Management of work
  3. Lean Operations
  4. Modeling and Simulation
  5. Feedback from the source

The driver for establishing and applying industrialization in manufacturing was the American Society of Mechanical Engineers (ASME) in the late 1800s and early 1900s. Currently no known association is leading this mission in the construction industry.

A marked result of the advancement in productivity of the manufacturing industry is the relative price of an automobile.  Whilst the cost of an automobile has gone from 140% in 1910 of the average national per capita income in the United States down to 33% in 2012, the cost of an average dwelling has gone up from 333% to 619% of per capita income during the same period.

Tweet: Since 1910 automobile production cost decreased 75%. The cost of a dwelling has doubled. Time to industrialize @3DSAEC http://ctt.ec/Urcfa+Click to tweet: “Since 1910 automobile production cost decreased
75%. Production cost of a dwelling has doubled. Time to industrialize”

This post is an excerpt from the white paper, “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and Dr. Heather Moore. Commissioned by Dassault Systemes and prepared by MCA Inc., this whitepaper focuses on industrialization of construction industry. It maps out the construction industry challenges, relates the history of industrialization in the manufacturing industry, and summarizes five critical aspects and approaches.

Download the whitepaper and start accelerating the “Industrialization of the Construction Industry” through lessons learned from manufacturing and other industries.

Tweet: The Case for Industrialization of the #Construction Industry @3DSAEC @Dassault3DS #AEC #BIM http://ctt.ec/Uz_OK+Click to tweet this article

 

Akio MoriwakiAkio Moriwaki
Dassault Systèmes’ head of global marketing for the Architecture, Engineering and Construction industry, Mr. Moriwaki led the launch of the groundbreaking Lean Construction Solution Experience and is a member of buildingSMART

Related resources:

Lean Construction Industry Solution Experience

Download Lean Construction Solution Brief

White Paper: Industrialization of the Construction Industry

MCA® Website

Who Will Lead the Prefabrication Movement?

By Patrick

 

This post is part of a series of articles found in “Prefabrication and Industrialized Construction,” a Dassault Systèmes whitepaper.

 

The shift toward prefabrication means embracing a new project delivery method. While the use of prefabrication offers clear advantages on many project types, the construction industry is notoriously slow to adapt to new business models.

Tweet: The shift toward #prefab means embracing a new project delivery method. @Dassault3DS @3DSAEC #BIM #AEC http://ctt.ec/eNHY2+

Click to tweet: “The shift toward #prefab
means embracing a new project delivery method.”

Widespread adoption of prefabrication is being seen from two drivers in particular: Building Product Manufacturers and Subcontractors.

Building Product Manufacturers

During the latest construction downturn, a handful of building product manufacturers flourished by consolidating with and/or acquiring a range of related building product companies.

Workers build a floor on a chassis at a factory. ©iStock.com/EdStock

The result is a handful of suppliers that are now able to deliver multiple building systems to a single project. This delivery system promotes a move toward prefabricated systems since it allows the supplier to move more product.

Take for example United Technologies, which manufactures both elevators and air conditioners. Such suppliers are more motivated to sell a complete system directly to the building owner, avoiding the battle to get each individual component specified by the designer or selected by the general contractor.

Subcontractors

For some time, subcontractors seeking to secure bigger contracts have looked to become a resource to architect in the design phase. These design-build partners are able to advise architects on product selection, and consequently lock in their preferred products and services.

However, many of these companies are focusing on a new advantage of selling directly to the building owner. With today’s focus on sustainability, more building owners are taking a long-term view of new construction; the future operation of systems is now a greater part of design considerations.

Tweet: Sustainability means the future operations of systems is now a greater part of design. @Dassault3DS @3DSAEC #AEC #BIM http://ctt.ec/dsdSa+Click to tweet: “Sustainability means the future
operations of systems is now a greater part of design.”

The emergence of design-build-operate-maintain contracts means subcontractors earn not only installation work but also a contract to provide maintenance work over the life cycle of their system.

Take again the case of United Technologies: while the supplier may only earn a small profit margin for installing its elevators, its labor force can earn as much as three times that by managing the operation of that elevator for the duration of its existence.

That movement toward life cycle maintenance is a major motivator for installers to be part of the early specification process — although building owners win as well with a more efficiently delivered product.

Next Steps

Forward-thinking suppliers and subcontractors already are promoting this new method of project delivery. As more building owners buy into the benefits of prefabrication, more members of the construction industry may find themselves adapting to this new reality.

Tweet: Who Will Lead the #Prefabrication Movement? @Dassault3DS @3DSAEC #AEC #BIM http://ctt.ec/Y2g1a+Click to tweet this article.

 

Patrick_Mays

Patrick Mays, AIA
With over 30 years of AEC experience, Mr. Mays is part of the core team driving the AEC industry strategy at Dassault Systèmes. He was  General Manager for North America at Graphisoft, and served as CIO at NBBJ Architects, where he led the firm’s transition to BIM in the 1990s.

 


Related Resources

Lean Construction Industry Solution Experience from Dassault Systèmes

Download the full whitepaper: Prefabrication and Industrialized Construction

Prefab and Industrialized Construction whitepaper

Enabling Flow: Knowledge Based Construction

By Akio

 

This post is an excerpt of the white paper “Lean Construction ‐ Advanced Project Delivery for the AEC Industry” from Dassault Systèmes’ Value Solution Business Partner CornerCube.

As organizations begin to understand the power of adopting an LPD approach to their programs and projects, they realize that a change process is underway and recognize that the production system is highly complex and dynamic.  Every project has a lifecycle beginning with the business case and defining requirements to final installation and beneficial use.

During the progression of the project’s lifecycle, the opportunity to influence or optimize the project’s development and eventual outcome lessens dramatically.

Tweet: As an #AEC project progresses, opportunity to optimize the outcome lessens dramatically @Dassault3DS @3DSAEC #BIM http://ctt.ec/Rqnpc+Click to tweet: “As an #AEC project progresses,
opportunity to optimize the outcome lessens dramatically”

Project Production Transformation process and opportunity to influence

Project Production Transformation process and opportunity to influence

Easily recognizable is the single line flow of delivery regardless of delivery method depicting the transformation process, buffers created (time, inventory, and capacity).  The simple flow can be as depicted below:

CornerCube White Paper Basic Production Flow

Basic Production Flow

What is not acknowledged is this same sequence of events is played out countless times on a project at the macro and micro level.  Every component, assembly, or action must undergo this same transformation to achieve a desired and successful outcome.

The production system looks more like the image depicted below where every work stream is affected, and managing buffers and the four knowledge flows (Information, Design, Supply Chain / Logistics, and Site Assembly) are critical.

CornerCube White Paper Production System Knowledge Flow

Production System Knowledge Flow

Achieving Optimal Production

Achieving an optimal production system often includes:

  • innovative operating agreements to attain integrated governance that  optimize  the  performance  of  the  collective  enterprise;
  • enabling technology  platforms  that efficiently manage the immense amounts of critical data in order to optimize the knowledge and physical flows that drive value creation; and,
  • effective processes that support continuous improvement and creative solutions that optimizes how work is planned, controlled and executed to drive out waste and deliver value (integrated governance, value management, delivery management).

Having the vision and desire to improve outcomes, and launching an LPD program without hesitation but with clear purpose, is often necessary to deliver beneficial change.

Tweet: The desire to improve outcomes & an LPD program w/ clear purpose is necessary to deliver change @3DSAEC #BIM #AEC http://ctt.ec/P3nc5+Click to tweet: “The desire to improve outcomes & an LPD
program w/ clear purpose is necessary to deliver change”

Industry Example

As  an  example,  Pat  Henderson,  president  of Hardstone Construction Company in Las Vegas, Nevada, sensed the potential risk on his large Tivoli Village at Queensridge Project  was  larger  than  any  one  organization  could  identify,  let  alone  manage.  To assist in identifying this risk, increase owner value, and reduce waste, he embraced several lean principles by creating an integrated virtual design and construction (iVDC) team.

Using Dassault Systèmes’ CATIA solution, the team not only  created  a  clash‐free  3D  model,  but  more  importantly,  by  leveraging  CATIA’s  knowledge  management capabilities, the team was able to drive better solutions to address extensive design changes, optimize system configurations, and support real‐time operations.  The risk Pat believed they would discover materialized as he predicted.  His preparation in assembling an iVDC team that developed production‐based solutions enabled Pat to better manage and mitigate that risk, and ensured the better outcomes he experienced.

Knowledge Flow-Based Construction

This type of knowledge flow‐based construction will dominate the conversation over the next decade. Enterprise 2.0 methodologies will drive digitally connected and highly integrated project communities where:

  • 3D will become a universal language for effective communication
  • Experiences and knowledge will be shared openly in a 24/7 project ecosystem to increase the speed, quality, and throughput of delivery solution
  • Emerging social  software  platforms  designed  for  the  construction  industry  will  become  the  digital environments which contributions and interactions will be globally visible and persistent over time
Fernando Espana, Founder and President of CornerCube Inc.

Fernando Espana, Founder and President of CornerCube Inc.

To learn more, read the full white paper “Lean Construction ‐ Advanced Project Delivery for the AEC Industry” from Dassault Systèmes’ Value Solution Business Partner CornerCube.

CornerCube is a Dassault Systèmes partner located in the San Francisco Bay area, offering Lean construction solutions, 3D technology solutions, and related technical services to the AEC industry.

 

Tweet: Enabling Flow: Knowledge Based Construction @3DSAEC @Dassault3DS #AEC #BIM  http://ctt.ec/s9A28+Click to tweet this article

 


Related resources:

Lean Construction Industry Solution Experience

Lean Construction – Advanced project Delivery for the AEC Industry White Paper

 



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