Why we build the way we do, and what we can do about it!
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The document discusses challenges in construction project management and production. It notes the tension between order-based production, which values efficiency, and chaos/creativity. It also discusses the development of construction practices from an emphasis on standardized, mass production approaches to more unique, customized approaches. Off-site production is presented as a potential strategy to achieve benefits of both standardized and unique approaches through mass customization.
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Why we build the way we do, and what we can do about it!
- 1. Industrialization and off-site production in construction? Why we build the way we do… and what we can do about it? Christian Thuesen chth@dtu.dk dk.linkedin.com/in/matute
- 2. Challenges of Project based Production Order Disciplinary Hierarchy Standardized Efficiency Linear Bureaucratic Codifying Chaos Interdisciplinary Network Unique Creativity Iterative Dynamic Experimenting Repetition Class Degeneration Innovative Individual Stress 2 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 3. Agenda □The development of construction □Societal development □Production practices in construction □Off-site production in construction □Is off-site production the right strategy? 3 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 4. Innovative learning Enter the site: http://m.socrative.com And join room LC2013 4 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 5. Socrative Question What characterizes a building? Is it standardized or unique? Standardized --------------------------------------- Unique 5 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 6. "If men define situations as real, they are real in their consequences“ William Isaac Thomas
- 7. The structuring myths of construction “…a space of representation which bears no relation of continuity with the dominant 'structural objectivity'. Myth is thus a principle of reading of a given situation, whose terms are external to what is representable in the objective spatiality constituted by the given structure.” (Laclau 1990: 61) Myth Reality Standardized Modern construction (products and practices) 7 Unique Postmodern construction (products and practices) DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen et al 2009/2013)
- 8. Modern Construction Standardized 8 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 10. Gellerup
- 11. Herlev sygehus
- 12. Timeschedule
- 13. Production
- 14. Postmodern Construction Unique 14 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 16. Bispebjerg bakke
- 18. Timeschedule
- 19. Collaboration
- 20. Agenda □The development of construction □Societal development □Production practices in construction □Off-site production in construction □Is off-site production the right strategy? 20 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 21. Socrative Question Are you similar or unique? Similar ----------------------------------------- Unique 21 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 22. We are all unique… but also similar Biologically Cultural we are all, regardless of race, genetically 99.9% the same 22 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 23. How unique are we? 23 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: Samsung
- 25. Generation Me The book argues that those born after 1970 are more selfcentered, more disrespectful of authority and more depressed than ever before… both as consumers and employees. 25 DTU Management Engineering, The Technical University of Danmark Some interesting quotes: • "In the early 1950s, only 12% of teens aged 14 to 16 agreed with the statement 'I am an important person'. By the late 1980s, an incredible 80%, almost seven times as many, claimed they were important“ • " 81,384 high school and college students ... completed questionnaires measuring what psychologists call 'agency': a personality trait involving assertiveness, dominance, independence, and self-promotion ... the average 1990s college student scored higher than 75% of college boomers from the 1970s“ • "Seventy percent of late-1990s high school students expected to work in professional jobs, compared to 42% in the 1960s ... In 1999, teens predicted they would be earning, on average, $75,000 by the age of thirty. The average income of a thirty-year-old that year? $27,000." • Furthermore Twenge shows, high self-esteem is _not_ correlated (or maybe it's negatively correlated) with achievement in school or at work. It is correlated with criminality, narcissism, and bad relationships, though PM@DTU
- 27. Market development 27 DTU Management Engineering, The Technical University of Danmark Source: Stanley M. Davis, Future PM@DTU Perfect
- 28. The long tail …a consequence of a more individualized society Mass production Mass customization 28 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 29. The long tail and “production” paradigms Ford Model T Ford Model T 1908 – 1927 1908 – 192715,000,000 Sale more than Sale more than 15,000,000 Number of variations : 1 Number of variations : 1 Mercedes E-Class: Mercedes E-Class: Introduced in 1993; currently on offer Introduced in 1993; currently on offer Sale more around 4,500,000 so far Sale more around 4,500,000 so far Number of variations: 3,347,807,348,000,000,000,000,000 Number of variations: 3,347,807,348,000,000,000,000,000 Mercedes E-Class Mass production Mass customization Aston Martin V8 1969 -1989 Sales number 4,021 Number of variations: hand crafted Aston martin Individual customization Individual customization Developed based on Anderson (2006) 29 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen et al 2009/2013)
- 30. Construction in1960-1970 The long tail and construction Traditional construction today Mass production 30 Mass customization DTU Management Engineering, The Technical University of Danmark Individual customization PM@DTU Source: (Thuesen et al 2009/2013)
- 31. Agenda □The development of construction □Societal development □Production practices in construction □Off-site production in construction □Is off-site production the right strategy? 31 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 32. Socrative Question Is the management of construction significantly different from management of other project activities? YES 32 YES&no DTU Management Engineering, The Technical University of Danmark yes&no yes&NO NO PM@DTU
- 33. Construction in the light of myths Standardized Societal frame Timeframe Driver of identity Unique Modern ► Postmodern 1900 – 1970 ► 1980 ->? Classes ► Individualism Architectural credo Form follows function ► Form follows fiction Characteristic of the building process Complex - but known ► Chaotic Production paradigm Value chain Vehicle for realization Management paradigm Productivity Implementation of Lean 33 DTU Management Engineering, The Technical University of Danmark Mass Production ► Individual Customization Integrated ► Fragmented Prefabrication ► In-situ Scientific Management ► Project management High ► Low Long term planning Short term planning ► (Line of Balance) (Last Planer System) PM@DTU Source: (Thuesen et al 2009/2013)
- 34. Are we better of with unique buildings? 34 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: wulffmorgenthaler.com
- 35. … are buildings unique? Ørestaden 35 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 36. Do we need to view them as beeing unique? "If men define situations as real, they are real in their consequences“ 36 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 37. What if we view buildings as both standardized and unique? “Mass Customization = producing goods and services to meet individual customer's needs with near mass production efficiency". Tseng and Jiao (2001, p. 685) 37 DTU Management Engineering, The Technical University of Danmark Source: (Tseng and Jiao 2001, PM@DTU p. 685)
- 38. Agenda □The development of construction □Societal development □Production practices in construction □Off-site production in construction □Is off-site production the right strategy? 38 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 39. The rationality behind Mass Customization Costs / willingness to pay Mass production Margin 39 Mass customization Individual customization Customer value ? Unit cost Diversity in range of products DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen et al 2009/2013)
- 40. Order decoupling points… and the long tail Mass production Mass customization MTO Standard Configuration of buildings CTO Standard products 40 Standard parts and modules DTU Management Engineering, The Technical University of Danmark Configuration of building parts ITO Standard parts and modules Engineering of product ETO Norms and standards Customized Select variant Individual customization PM@DTU Source: (Thuesen et al 2013)
- 41. Top-down vs bottom-up Building concepts (top-down) • Think in terms of holistic architectural and system solutions and develop reusable solutions which can be re-used • Address the market and not just the individual building project Off site production network On site assembly Transformation Transformation Transformation Transformation System products (bottom-up) • Producers of building materials develop (sub)systems which are intended to be a part of a building • Specify interfaces and design rules, so as to achieve configuration rather than engineering 41 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Hvam 2013)
- 42. Installation shafts 42 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Hvam 2013)
- 43. Komplett vs. the German platform NCC Komplett The German Platform Mass production Mass customization NCC Komplett Individual customization The German platform 90% Fabrication High fixed costs, unable to control costs Low fixed costs but still 30% cost reduction Couldn’t compete with traditional construction practices 43 90 % Insitu Established a new market – high quality and low cost DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Jonsson 2009)
- 44. Berlin Hamburg The German platform Frankfurt/M. 44 DTU Management Engineering, The Technical University of Danmark Munich PM@DTU
- 45. Different markets – the same platform Apartments 60% Row houses 100% Holiday immobiles 90% The technical platform 45 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Hvam 2011)
- 46. The platform – a platform for growth Apartments Single family houses Holiday immobiles High end product Midrange product Low end product Row houses 46 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Hvam 2011)
- 47. Platform development through incremental innovation 47 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Hvam 2011)
- 48. Experinces • Working with platforms is no rocket science, substantial benefits can be achieved by using existing construction practices and tools • No fancy IT-systems are needed for the implementation of platforms. The platform can be situated within a combination well defined skills and organizational culture. • Implementation of platforms requires a strong commitment and loyalty from the whole organization • Important to have a specific customer focus (target costing) • Platforms require incremental and systematic innovation with a clear separation between the continuous development of and the production based on the platform. 48 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Thuesen & Hvam 2011)
- 49. Agenda □The development of construction □Societal development □Production practices in construction □Off-site production in construction □Is off-site production the right strategy? 49 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 51. Exercise: How many figures can you build using 6, 2x4 blocks of the same color? 915.103.765 51 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: http://www.math.ku.dk/~eilers/lego.html
- 52. What is modularization? The anatomy of modularity •Modularity is an attribute of a complex system that advocates designing structures based on – Minimizing interdependence between modules and – Maximizing interdependence within them that can be mixed and matched in order to obtain new configurations without loss of the system’s functionality or performance (Baldwin and Clark 1997; Langlois 1992). •Each module communicates and interacts with the others via standardized interfaces that allow modules’ decoupling 52 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: (Campagnolo & Camuffo 2010)
- 53. Types of modularity Product modularity Organizational modularity 53 DTU Management Engineering, The Technical University of Danmark Process modularity PM@DTU Source: (Campagnolo & Camuffo 2010 & Thuesen 2012)
- 54. Aktører: Virksomheder: Arkitekter, Rådgivere, Entreprenører, Håndværkere Interesse Org: DB, FRI, Danske Ark, Tehniq, Muro… Markeder: Nybyg, renovering Boliger, sygehuse, Erhverv Anlæg… Projekt Aktører: Virksomheder: (producenter af byggematerialer, grossister,) Interesse Org.: DI Byg, DB Byggematerialer, Markeder: Byggematerialer (beton, Vinduer, isolering,…) Distribution (Grossister, transport…) Forretningsmodel: Mass produktion, Høje faste omkostninger Regulering: Obligatorisk: BR (krav om styrke, brandsikkerhed og sundheden), DS (normer), MK, VA, ETA, CE mærkning Frivillig: Betonvare Kontrollen, Dansk Murstenskontrol… FSC, svanemærkning Regulering: Byggeloven, Bygningsreglementet Energimærkning Forretningsmodel: Licitation baseret, Engineer to order, Høje variable omkostninger Markeder: Service (FM) Vand Varme EL Aktører: Energiselskaber (Gas, EL og Varme) Vandværker Renovation Regulering: Krav om CO2 reduktion for energiselskaber Forretningsmodel: Service, abonnement Høje variable/faste omkostninger Source: Thuesen (forthcomming)
- 55. Projekt BIM, LC, Partnering, OPP DGNB, LEED, BREAM BOT Systemleverancer ESCO DBO C2C FM Automation LCA PSS 55 DTU Management Engineering, The Technical University of Danmark PM@DTU Source: Thuesen (forthcomming)
- 56. 56 DTU Management Engineering, The Technical University of Danmark PM@DTU
- 57. Central references Baldwin, C.Y. and Clark, K.B. (1997). Managing in an age of modularity. Harvard Business Review, 75, pp. 84–93. Campagnolo, D. & Camuffo, A. (2010) The Concept of Modularity in Management Studies: A Literature Review, International Journal of Management Reviews, Blackwell Publishing Ltd and British Academy of Management, pp. 259-283 Thuesen, C. (2012) Understanding Project Based Production through Socio-technical Modularity, The Academy of Management 2012 Annual Meeting, Boston, MA,US Thuesen, C., Jensen, J. S., and Gottlieb, S. C. (2009), “Making the long tail work—Reflections on the development of the construction industry the past 25 years.” Proc., 25th Annual ARCOM Conf., Association of Researchers in Construction Management, Nottingham, U.K., pp.1111–1120 Thuesen, C., Jensen, J. S., and Gottlieb, S. C. (2013), Enabling Mass Customization in Construction : Making the long tail work, In Piroozfar, P.A.E. & Piller, F. T. (eds.) Mass Customisation and Personalisation in Architecture and Construction, Routledge Thuesen, C. & Jonsson, C. C. (2009) The Long Tail and innovation of new construction practices - Learning points from two case studies. In A.S. Kazi, M. Hanus and S. Boujabeur, (eds.) "Open Building Manufacturing: Key Technologies, Applications, and Industrial Cases", Manubuild Thuesen, C. & Hvam, L. (2011) Efficient on-site construction: learning points from a German platform for housing, Efficient on-site construction: learning points from a German platform for housing", Construction Innovation: Information, Process, Management, Vol. 11 Iss: 3, pp.338 – 355 Thuesen, C. & Hvam, L (2013) “Rethinking the Business Model in Construction by the Use of Off-Site System Deliverance: Shaft Project” Journal of Architectural Engineering, Vol. 19, No. 4, December 1, 2013. Tseng, M. M., and Jiao, J. (2001). “Mass customization.” Handbook of industrial engineering: Technology and operationmanagement, 3rdEd., G. Salvendy, ed., Wiley, New York. 57 DTU Management Engineering, The Technical University of Danmark PM@DTU