SLIDE 1
Content
- The Construction Industry in Sweden
- The Problem Area
- The Product
- Industrial House Building
- Product and Process Matrix
- Supply Chain
- Customer Order Decupling Point
- Planning System
- Manufacturing Strategy
- Conclusions and Outlook
The Shift from Construction Site to Prefabrication in the - - PowerPoint PPT Presentation
The Shift from Construction Site to Prefabrication in the - - PowerPoint PPT Presentation
The Shift from Construction Site to Prefabrication in the Construction Industry: A Case Study By Fredrik Persson and Stefan Engevall Linkpings universitet Department of Science and Technology Campus Norrkping APMS 2008 Espoo, Finland
SLIDE 2
SLIDE 3
Construction Industry in Sweden
- Construction Industry (2007)
- 68.000 companies
- € 50.000 million turnover
- 450.000 employees
- Construction Companies (2007)
- 24.000 companies
- € 24.000 million turnover
- 270.000 employees
- Peab and SBE (Skandinaviska Byggelement)
- € 3.500 million turnover
- 12.000 employees
SLIDE 4
Problem Area
- Problem
- Houses are expensive to build – the price becomes high
- Customers like low prices
- Customers like low costs of living
- Solution
- Lower cost house production
- Modularized concepts and prefabrication to lower production costs
- Trend
- Higher degree of modularization and prefabrication in house
production
- Purpose
- Describe the shift from construction site to prefabrication
SLIDE 5
The Product
Traditional house building Modularized / Prefabricated house building On-site Built from raw materials On-site Built from modules In factory Built from raw materials
SLIDE 6
Industrial House Building
- Product and Process Matrix
- Hayes and Wheelwright, 1979
- Supply Chain
- Fisher, 1997
- Customer Order Decupling Point
- Wikner and Rudberg, 2005
- Planning System
- Berry and Hill, 1992 and Olhager et al., 2001
- Manufacturing Strategy
- Hill, 2000 and Hayes and Wheelwright, 1984
SLIDE 7
Product and Process Matrix
- I. Low volume,
low standardisation,
- ne of a kind
- II. Multiple
products, low volume
- III. Few major
products, higher volume
- IV. High
volume, high standardisation, commodities
- I. Firm position
- II. Jumbled flow
(job shop)
- III. Disconnected
line flow (batch)
- IV. Connected
line flow (assembly line)
- V. Continuous
flow
Product structure & Product life cycle stages Process structure & Process life cycle stages
1. 2. 3.
Source: Hayes and Wheelwright, 1979
Mismatch
Implications: Lower flexibility with higher efficiency
SLIDE 8
The Right Supply Chain
Match Functional Innovative Product charateristics Supply Chain charateristics Match Efficient Market responsive
Source: Fisher, 1997
Implications: Lower cost supply chain
SLIDE 9
Customer Order Decupling Point
Source: Wikner and Rudberg, 2005
Supplier Construction Company Site CODP CODP
Implications: Postponement of customer allocations
SLIDE 10
The Planning System
Product Characteristics: Type of product Standard → Special Range of products Narrow → Broad Production volume per period High → Low Levels of planning: Sales and operations planning (a) Level Chase Master production scheduling MTS ATO MTO Materials planning Rate based Time phased Production activity control Pull / JIT Push / MRP
Source: Berry and Hill, 1992 and Olhager et al., 2001
Implications: Utilize Lean production initiatives to reduce cost
SLIDE 11
Manufacturing Strategy
Source: Hill, 2000 and Hayes and Wheelwright, 1984
Order Winner Order Qualifier Acceptable Level Better Characteristics Perceived Customer Value
Price Felxibility
Implications: New ways to compete on the market are necessary
Price
SLIDE 12
Traditional House Building
Supplier Raw material Site CODP MTO/ETO Supply chain configuration: Responsive Planning system: Time phased Production process: Project
SLIDE 13
Modularised / Prefabricated
Supplier Raw material WIP Elements Site CODP MTS MTO/ETO Supply chain configuration: Efficient Responsive Planning system: Rate based Time phased Production process: Production line Project
SLIDE 14
Conclusions and Outlook
- Traditional House Building
- Construction Company: Peab
- On site, time phased, responsive
- High cost, long lead time
- Modularized / Prefabricated House Building
- Construction Company: SBE
- In factory, rate based, efficient, postponement
- Low cost, short lead time
- Outlook
- Supply Chain Structures (Sourcing)
- Drivers for Industrial House Building (Production and Distribution)
- Case Studies (Inwall)
SLIDE 15