The Economic Theory of Production Conceals Opportunities for Sustainability Improvement

In analyses of action options regarding sustainability, the economic theory of production is often used as a conceptual starting point. We contend that this theory is deficient, even counterproductive. Especially, we argue that effective options exist for sustainability improvement that are not visible in this theory, and thus will not be taken into consideration when comparing alternative options based on it. We argue that the fundamental problem of the economic theory of production is that it cannot explain the formation of either cost or value in an adequate way. This situation seems to have been caused by the foci and assumptions of the “marginalist turn” of economics, starting from 1870, especially the denial to consider any internal organization of production other than that caused by prices and costs, the assumption of optimal efficiency, and the assumption of ends as given. The shortcomings of the economic theory of production are demonstrated through a case study on plasterboard (also known as drywall) installation. We show how practices for installation of these products, as advocated in lean construction, would not have been suggested or visible in a “sustainability” analysis based on economic theory

Using modularity to reduce complexity of industrialized building systems for mass customization

It is widely known that industrialized building systems can positively impact construction projects in terms of efficiency, duration, safety, and quality. Although the use of industrialized building systems can potentially simplify the production process on-site, the complexity of the overall delivery system tends to be high, especially in engineered-to-order (ETO) environments, due to factors such as uncertainty related to goals and methods, conflicts between different trades on-site, and interdependence between supply chain members. This paper explores the concept of modularity, which has proven to be useful in different industries as a way of dealing with complex systems. The aim of this paper is to illustrate how modularity can reduce the complexity of ETO industrialized building systems, in companies that adopt a mass customization strategy. This investigation is based on two descriptive case studies on the development of modular structural steel systems for buildings that have adopted innovative beam-to-column connections. The main contribution of this research is demonstrating the need to adopt an integrated product and process-oriented conceptualization of modularity in industrialized building systems. Moreover, the comparison between the two case studies pointed out that the management of tolerances plays a key role in achieving high productivity and short lead times in structural steel building systems. This investigation also illustrates how the adoption of a limited set of modular components can be used to decouple design decisions, and standardize different types of processes

REDUCING REWORK IN DESIGN BY COMPARING STRUCTURAL COMPLEXITY USING A MULTI DOMAIN MATRIX

ABSTRACT Complexity in design causes iteration which can be value-adding or wasteful. Wasteful iteration, called rework, may stem from inefficient information flow in design. This paper focuses on the structural complexity of information flow, and on the identification of root causes of the resulting rework. We propose that one can identify root causes for rework in the design phase of a project by (1) making actual information flow transparent and by (2) comparing actual information flow to planned information flow. After identifying misalignments between actual-and planned information flow, one can find their root causes, and then address those causes in order to reduce rework in design. We use a Multi Domain Matrix to deduce actual ('As is') and planned ('Should') information flow and then apply the Delta-Design Structure Matrix to compare the structures of the 'Should-' with the 'As is' perspective. The proposed hypotheses, "Comparing structural complexity between the 'Should-' and the 'As is' perspective helps to identify misalignments" and "Reduction of misalignments between actualand planned information flow reduces rework in design" were tested during the detailed design phase of a project. The Multi Domain Matrix and Design Structure Matrix were successfully applied: comparison of structural complexity aided in making actual information flow transparent and in reducing rework

SOCIAL NETWORK ANALYSIS OF INFORMATION FLOW IN AN IPD-PROJECT DESIGN ORGANIZATION

ABSTRACT Lean Construction recommends concurrent development of product and process by bringing Last Planners into the design phase. While this approach offers opportunities to reduce downstream waste and improve value generation, it increases coordination complexity during design due to the increased number of participants in the design team. In large projects, this increased number of participants can demand a multiteam structure with roles and mechanisms to coordinate the work between teams. In a case study we document the coordination mechanisms of a design organization on a large-scale construction project, being delivered under an Integrated Project Delivery (IPD) type contract, the Integrated Form of Agreement (IFOA). We conduct a Social Network Analysis (SNA) of information flow between people on the project, who work in a big-room environment. Analysis of this IPD-based social network with indices of degree centrality, betweenness centrality, and clustering, yields the following results: (1) the Chief Engineer and leaders of cross-functional teams play key roles in the coordination between teams, (2) people take on coordination jobs, even if it is not part of their formal role, and (3) IPD projects foster cross-functional collaboration. We conclude the paper with managerial recommendations for the efficient and effective coordination of IPD-based design project organizations and ideas for future research

IS THE LAST PLANNER SYSTEM APPLICABLE TO DESIGN? A CASE STUDY

ABSTRACT The Last Planner TM system has been successfully implemented in construction to increase the reliability of planning, improve production performance, and create a predictable workflow. However, some practitioners question the function of the Last Planner TM system during design especially that design processes involve iterations and circular chains of interaction between different parties. The purpose of this paper is to report on research comprising the application of Last Planner TM system in design. The paper describes the developments and adjustments introduced to the Last Planner TM system to better suit design processes on a health care project in North America. Novel standardized planning practices used on the project are reported and analyzed. The study findings suggest that the Last Planner TM system principles account for both deliberative and situated action models. On one hand, deliberative planning 4 takes place at the master and phase scheduling level where a premeditated rigid course of action is undertaken in setting milestones and identifying handoffs. On the other hand, situated planning is performed at the lookahead planning and weekly work planning stages where planning takes into account changes in the environment and the uncertainty affecting inputs, processes, and outputs of design activities. KEY WORDS Lean design, last planner tm system, lookahead planning, production control, lean construction

Target-Setting Practice for Loans for Commercial Energy-Retrofit Projects

Overcoming the financial barriers to energy-efficiency (EE) investments requires efforts to explicitly evaluate energy-related risks during the commercial loan underwriting. To support such efforts, the objective of this paper is to suggest a novel target-setting practice that borrowers and lenders collaboratively can use during the early stages of an energy-retrofit project. The practice uses a simulation called Energy Retrofit Loan Analysis Model (ERLAM) to determine the target-building performance and the allowable cost for design and construction. Using a case study of an energy-retrofit project, this paper demonstrates use of ERLAM by evaluating the impact of two identified energy-related uncertainties (project-cost risk and operational-practice risk) on the financial performance of the investment. This target-setting practice can help project parties gain greater understanding and early confidence in the feasible size- and terms of a loan before moving to design development. As a result, the practice can support commercial underwriting by helping to overcome financial barriers to energy-retrofit projects.Keywords: Risk management, Energy efficiency, Simulation, Commercial buildings, Lean construction, Financing, Case studie

Using Controlled Experiments to Calibrate Computer Models: The Airplane Game as a Lean Simulation Exercise

Simulation games may be used to introduce lean principles to those who are considering implementing them. However, they can also function as controlled experiments against which to calibrate a computer model and they can even be adapted to serve as the gold standard of scientific experimentation, the randomized-controlled trial. Results generated from a live playing of the Airplane Game validate an EZStrobe computer-based simulation model representing one part of the game. Close alignment of results suggests that the computer model will likely be able to accurately predict outcomes from similarly structured, real life activities, such as those encountered in a design office or on a construction site

DePlan: a tool for integrated design management

The iterative and information-intensive nature of the design process during detail design phases makes it hard to plan and schedule design work using computer tools for conventional project management. The success of design projects depends on the quality of the available information. Having the right information at the right time is crucial. This paper proposes DePlan as a method for integrated design management, i.e. for planning, scheduling, and controlling design activities during the detail design phase. DePlan integrates two techniques, namely ADePT (Analytical Design Planning Technique) andExtended WorkPlan Last Planner, each involving a software tool.. ADePT implements the dependency structure matrix (DSM) analysis method and helps identify the iterative processes and the planning strategy for managing them. Last Planner is a production management philosophy that focuses on scheduling and controlling design activities. Combined as DePlan, these techniques help planners generate quality plans, i.e., plans that express what is ready for execution by sequencing activities in the right order, identifying informational and resource requirements ahead of design execution, and by scheduling only activities that have met these requirements. This collaborative research has successfully developed the DePlan approach and associated computer software and tested them on a typical office building

Integrating design planning, schedule and control with Deplan

The planning and management of building design has historically been focused upon traditional methods of planning such as Critical Path Method (CPM). Little effort is made to understand the complexities of the design process; instead design managers focus on allocating work packages where the planned output is a set of deliverables. All too often there is no attempt to understand and control the flow of information that gives rise to these deliverables. This paper proposes the combined use of the Analytical Design Planning Technique (ADePT) and Last Planner methodology as a tool called DesPlan to improve the planning, scheduling and control of design. ADePT is applied during the early planning stages to provide the design team with an improved design programme that takes into account the complex relationships that exist between designers, and the information flows that flows between them. Then the Last Planner methodology is employed, through a program called ProPlan, to schedule and control the design environment