Implementation of Production System Design in House Building Projects: a Lean Journey in Chile - Karina Barth - Ph.D. Candidate Marcus Sterzi ...

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Implementation of Production System Design in
House Building Projects: a Lean Journey in Chile
                 Karina Barth - Ph.D. Candidate
                      Marcus Sterzi - MSc
                     Carlos Formoso - PhD
                  Juan Ignácio Alliende - Eng
                      Daniela Bertín - Eng
                      Jorge Del Rio - Eng
Agents involved
                        • Largest real estate group in Chile.
                        • Both development and construction.
                        • High degree of repetitiveness in its
                          residential building projects.
                        • More than a 100 projects in progress and
                          sells more than 3,000 units per year.
                        • The company is promoting a major Lean
• Research center in      transformation process.
  the University.
• Co-Responsible                   • Lean consultancy company
  for the Lean                     • Responsible for the Lean
  Implementation                     Implementation Program
  Program.

                                                                2
Production System Design (PSD) in Construction

 • PSD translates the production strategy into a set of decisions, which establishes a structure
   to manage different activities, and creates conditions for control and improvement (Ballard et al.
   2001a; Schramm et al. 2006).

 • PSD consists of developing operation and process design in alignment with (Ballard et al. 2007):
     • product design,                         • the allocation of resources, and
     • the structure of supply chains,         • design-for-assembly efforts.

 • PSD involves a set of interconnected decisions, considering the need to improve the
   production system as a whole (Schramm et al. 2004).

 • PSD can potentialize the benefits of the LPS, allowing the early identification of a larger range
   of problems (Frandson et al. 2015).
                                                                                                        3
Aim of the study
• This paper reports the experience of a construction company that has implemented PSD
  and the LPS over 3 years, as part of an ongoing Lean implementation program.

• Contributions of this paper:

    • the definition of the scope and potential benefits of PSD
    • the proposition of a set of practices that can be used along the PSD stages, with
      emphasis on location-based planning and control

                                                                                          4
Implementation Process and Results
                     PHASE       01                              PHASE      02                              PHASE      03
Assessment of existing situation             Development and initial testing           Implementation of PSD and
– 2017                                       of the Production Management              LPS – 2018/19
                                             System – 2017/18
2 PROJECTS                                   3 PILOT PROJECTS                          5 IMPLEMENTATION PROJECTS

- Construction sites visits for assessing
                                             - Training course on Lean Construction    - Implementation of LPS
  planning and control system:
  Evaluation protocol                        - Implementation of PSD (emphasis on      - Implementation of PSD model
- Participation in planning sessions,          location-based planning and control)    - Evaluation of results, refinement
  interviews and analysis of the             - Implementation of LPS                     and standardization
  company’s                                 Lean Supporting Group: consultants and
Company   did system
              not haveforaplanning andand
                          systematic         - Evaluation  of the benefits of the      - Evaluation of the benefits of PSD
  control                                              company    members.             Workshop   organized by the LSGroup to
              explicit PSD.                    implementation and proposition of         through indicators: LPS metrics,
                                               New   decision category included to     identify and disseminate
                                                                                         batch adherence   control,the benefits
                                                                                                                    rhythm
Lack of understanding of Lean concepts.        PSD model
                                            emphasize layout and logistics planning.            of implementing
                                                                                         deviation, and cycle timePSD.
                                                                                                                    variance
 Large amount of WIP (based on Batch
                                             Standardized control tools: cycle time,      Proposition of a PSD Guidebook.
  Completeness Index and Heatmaps).
                                              takt time, WIP and synchronization.
                                                                                                                             5
PSD Company Model

                                                               4. Definition of      5. Layout and
 1. Analysis and     2. Definition of                          the execution            logistics
                                         3. Definition                                               7. Identification
   definition of     resources and                                strategy              planning
                                         of workflows                                                 and design of
  construction        estimation of
                                                                                                          critical
    sequence       production capacity                                   6. Definition of               processes
                                                                            workflows
                                                                         (whole project)
Base-unit

                                                         8. PSD review

                                                                                                                     6
PSD Company Model: Decision Categories
1. Analysis and definition of construction sequence (base-unit)

                                                                                                                      2. Definition of resources and estimation of
                                                                                                                                   production capacity (base-unit)
                                         03. Masonry
01. Foundations        02. Structure                        04. Roof Structure   05. Roof       06. Facade Cladding
                                        and Plumbing

   07. Drywall / Electric                                                                           12. Bath and
                                 08. Windows    09. Doors       10. Flooring     11. Painting
         Systems                                                                                  Kitchen Artefacts

                                                                                                                                                                7
PSD Company Model

                                                               4. Definition of      5. Layout and
 1. Analysis and     2. Definition of                          the execution            logistics
                                         3. Definition                                               7. Identification
   definition of     resources and                                strategy              planning
                                         of workflows                                                 and design of
  construction        estimation of
                                                                                                          critical
    sequence       production capacity                                   6. Definition of               processes
                                                                            workflows
                                                                         (whole project)
Base-unit

                                                         8. PSD review

                                                                                                                     8
PSD Company Model

                                                               4. Definition of      5. Layout and
 1. Analysis and     2. Definition of                          the execution            logistics
                                         3. Definition                                               7. Identification
   definition of     resources and                                strategy              planning
                                         of workflows                                                 and design of
  construction        estimation of
                                                                                                          critical
    sequence       production capacity                                   6. Definition of               processes
                                                                            workflows
                                                                         (whole project)
Base-unit

                                                         8. PSD review

                                                                                                                     9
PSD Company Model: Decision Categories
   4. Definition of the execution strategy

                                                            3rd stage    2nd stage   1st stage
                                             4th stage
Execution path of critical processes not
                                             Work areas ("small projects”) and
included in BU: Facades                                                                          10
                                             execution path of BU processes
PSD Company Model: Decision Categories
 5. Layout and logistics planning

                                         11
PSD Company Model: Decision Categories
 6. Definition of workflows (whole project)                                                                                                                                                                                                                                      LOB PATAGUAS V PRELIMINAR 17.06.2020
                                          ago-2020                           set-2020                           out-2020   nov-2020    dez-2020   jan-2021 fev-2021    mar-2021     abr-2021    mai-2021      jun-2021      jul-2021   ago-2021     set-2021    out-2021
                       PISO
                                              1                                  2                                  3          4           5          6        7          8             9          10            11             12        13            14         15

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Line of Balance
                   SEMAN                1   2   3  4                       5  6    7  8                       9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60                                                                                                                                                                                                                                                                                                                                                             LEYENDA
                                        3/8   10/8           17/8   24/8   31/8   7/9           14/9   21/9   28/9   5/10        12/10        19/10        26/10        2/11           9/11        16/11    23/11    30/11         7/12    14/12    21/12   28/12     4/1   11/1     18/1     25/1   1/2    8/2     15/2    22/2    1/3    8/3   15/3           22/3    29/3   5/4   12/4           19/4   26/4   3/5   10/5     17/5     24/5   31/5   7/6   14/6           21/6   28/6   5/7   12/7           19/7   26/7   2/8   9/8           16/8   23/8   30/8   6/9           13/9   20/9

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       CADA UNA DE LAS ACTIVIDADES DE
                            2I                                                                                                                                                                                                                                                                                        1°       2°                                                                                                                                                                                                                                                                      LOS LOCALES COMERCIALES INICIA
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  RADIER

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   with Wagon
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       TERMINANDO LOS PAREOS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       CORRESPONDIENTES
                          2H                                                                                                                                                                                                                                                                                1°        2°                                                                                                                                                                                                                                                                                                                          MACHONES

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   System
                           2G                                                                                                                                                                                                                                                                         1°      2°                                                                                                                                                                                                                                                                                                                                CORONACIÓN

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    ESTRUCTURA TECHUMBRE

                           2F                                                                                                                                                                                                                                                                  1°      2°                                                                                                                                                                                                                                                                                                                                          CUBIERTA

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           ESTUCO EXTERIOR

                           2E                                                                                                                                                                                                                                                        1°        2°                                                                                                                                                                                                                                                                                                                                          ALERO Y FRONTON

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             YESO 1° Y 2° PISO

                          2D                                                                                                                                                                                                                                                1°       2°                                                                                                                                                                                                                                                                                                                                                         INST. ESCALA

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  CIELO FALSO

                           2C                                                                                                                                                                                                                                        1°      2°                                                                                                                                                                                                                                                                                                                                                                      TABIQUE

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  IMPERMEABILIZACIÓN/TINA

                           2B                                                                                                                                                                                                                               1°        2°                                                                                                                                                                                                                                                                                                                                                                           VENTANAS

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       INSTALACION PUERTAS

                           2A                                                                                                                                                                                                                       1°        2°                                                                                                                                                                                                                                                                                                                                                                                   CERAMICA

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 CARPITERÍA DE TERMINACIÓN

                            1I                                                                                                                                                                                                            1°        2°                                                                                                                                                                                                                                                                                                                                                                                      REMATE DE YESO

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     APAREJO

                          1H                                                                                                                                                                                                  1°           2°
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Post delivery                                                                                          PINTURA 1 MANO

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   MUEBLES COCINA Y CLOSET

                           1G                                                                                                                                                                                        1°            2°

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       activities                                                                                      ARTEFACTO SANITARIO

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               QUINCALLERIA

                           1F                                                                                                                                                                              1°        2°                                                                                                                                                                                                                                                                                                                                                                                                                     GRANO EXTERIOR

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  ALFOMBRA

        1                  1E                                                                                                                                                                 1°           2°                                                                                                                                                                                                                                                                                                                                                                                                                 REJA METALICA Y BAJADAS DE ALL

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     EMPAREJAMENTO PATIO FINO/ PASTELONES

                          1D                                                                                                                                                   1°              2°                                                                                                                                                                                                                                                                                                                                                                                                                                          ENTREGA INTERNA

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ENTREGA INMOBILIARIA (2° MANO PINTURA EXTERIOR - 2° MANO
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   PINTURA INTERIOR - ACCESORIOS - GRIFERIA)

                           1C                                                                                                                                      1°             2°

                           1B                                                                                                                         1°            2°
                                                                                                                                                                                                                                                                                                                                                                        ENTREGA                                                                     ENTREGA
                                                                                                                                                                                                                                                                                                                                                                        CARPETA                                                                     CARPETA
                                                                                                                                                                                                                                                                                                                                                                       BLOQUE N° 1                                                                 BLOQUE N° 2
                           1A                                                                                                            1°            2°

                                                                                                                                                                                                                                                                                                                                             1st delivery                                                                       2nd delivery
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 12
                          SEMANA        1      2              3      4      5     6              7      8      9     10             11        12           13           14             15          16           17    18           19          20   21       22       23     24      25       26     27     28      29       30     31     32    33             34      35     36    37             38     39     40    41       42       43     44     45    46             47     48     49    50             51     52     53    54            55     56     57     58            59     60
                      DIA INICIO

                             MES
                                        3/8   10/8

                                                     Buffer = 1 week
                                              ago-2020
                                                      1
                                                             17/8   24/8   31/8   7/9

                                                                                         2
                                                                                  set-2020
                                                                                                14/9   21/9   28/9   5/10

                                                                                                                     out-2020
                                                                                                                             3
                                                                                                                                 12/10        19/10        26/10        2/11

                                                                                                                                                                        nov-2020
                                                                                                                                                                                4
                                                                                                                                                                                       9/11        16/11

                                                                                                                                                                                                           Buffer = 1 week
                                                                                                                                                                                                            23/11    30/11

                                                                                                                                                                                                                             5
                                                                                                                                                                                                                      dez-2020
                                                                                                                                                                                                                                   7/12    14/12    21/12   28/12

                                                                                                                                                                                                                                                         jan-2021
                                                                                                                                                                                                                                                                 6
                                                                                                                                                                                                                                                                      4/1   11/1     18/1

                                                                                                                                                                                                                                                                                      7
                                                                                                                                                                                                                                                                                   fev-2021
                                                                                                                                                                                                                                                                                              25/1   31/1   7/2     14/2

                                                                                                                                                                                                                                                                                                                     8
                                                                                                                                                                                                                                                                                                                  mar-2021
                                                                                                                                                                                                                                                                                                                            21/2    28/2   7/3   14/3

                                                                                                                                                                                                                                                                                                                                                 abr-2021
                                                                                                                                                                                                                                                                                                                                                         9
                                                                                                                                                                                                                                                                                                                                                                21/3    28/3   4/4   11/4

                                                                                                                                                                                                                                                                                                                                                                                            10
                                                                                                                                                                                                                                                                                                                                                                                     mai-2021
                                                                                                                                                                                                                                                                                                                                                                                                    18/4   25/4   2/5   9/5      16/5

                                                                                                                                                                                                                                                                                                                                                                                                                                  11
                                                                                                                                                                                                                                                                                                                                                                                                                               jun-2021
                                                                                                                                                                                                                                                                                                                                                                                                                                          23/5   30/5   6/6   13/6

                                                                                                                                                                                                                                                                                                                                                                                                                                                                     12
                                                                                                                                                                                                                                                                                                                                                                                                                                                              jul-2021
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             20/6   27/6   5/7   12/7

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        13
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 ago-2021
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                19/7   26/7   2/8   9/8

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          14
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    set-2021
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  16/8   23/8   30/8   6/9

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             15
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       out-2021
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     13/9   20/9

            Total dias de actividades                199,0                              193,0                               273,0                                              345,0                                       446,0                             418,0                   474,0                          855,0
                                                                                                                                                                                                                                                                                                                                                 stage  705,0                               659,0
                                                                                                                                                                                                                                                                                                                                                                                                                                   stage
                                                                                                                                                                                                                                                                                                                                                                                                                                 732,0                               495,0                              399,0                             406,0                              117,0
PSD Company Model

                                                               4. Definition of      5. Layout and
 1. Analysis and     2. Definition of                          the execution            logistics
                                         3. Definition                                               7. Identification
   definition of     resources and                                strategy              planning
                                         of workflows                                                 and design of
  construction        estimation of
                                                                                                          critical
    sequence       production capacity                                   6. Definition of               processes
                                                                            workflows
                                                                         (whole project)
Base-unit

                                                         8. PSD review

                                                                                                                  13
PSD Company Model

                                                               4. Definition of      5. Layout and
 1. Analysis and     2. Definition of                          the execution            logistics
                                         3. Definition                                               7. Identification
   definition of     resources and                                strategy              planning
                                         of workflows                                                 and design of
  construction        estimation of
                                                                                                          critical
    sequence       production capacity                                   6. Definition of               processes
                                                                            workflows
                                                                         (whole project)
Base-unit

                                                         8. PSD review

                                                                                                                  14
Benefits of Implementing PSD
• Formalizing and making explicit
  planning decisions:
 Key decisions on the design of the
 production system were made with the
 participation of main stakeholders
• Reduction in uncertainty:
  PSD helps identifying production
  system limitations and critical
  processes.                            Examples of PSD meetings

                                                                   15
Benefits of Implementing PSD
• Improving planning accuracy: considering multiple alternatives of construction systems and subsystems
• Facilitating the adoption of cycle time and takt time control: provides information in a systematic way

                                                                                                 Planed
                                                                                                 Executed

                                         Planed
                                         Executed
Benefits of Implementing PSD
• Increasing engagement of stakeholders
• Improving production stability

Evolution of PPC

                                          Sequence and
                                            WIP control
Conclusions
Proposed PSD model X Previous studies:
• It was tested and implemented on several residential projects in a systematic way
• Provides more emphasis on location-based planning and control, layout and
  logistics studies during pre-construction stages
• Advances in terms of cycle time, takt time, WIP and synchronization analysis before
  construction
• Generates information concerning the production system as a whole
• Produces a set of standardized tools to be used to monitor the implementation of PSD
Data have been collected by the research team and, in the near future, the main results
achieved will be systematically reported.
                                                                                          18
THANK YOU!
Karina Barth – karina@ldconsulting.com.br
Marcus Sterzi - marcus@ldconsulting.com.br
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