Improving the delivery of affordable housing through reduction of rework in the supply chain

By : Mehdi Shahparvari ,

Professor Herbert Robinson

Professor Daniel Fong

London South Bank University (LSBU)

September 2019

Introduction

Context and rationale

Literature Review & key issues

Methodology and Preliminary findings

Conceptual Framework

s

Reduction of production cost and

quality improvement of

housing

Home Builders Federation survey in 2015, resulted 93% of homeowners

experienced defects/rework within their new-build houses

£1.3 TrillionOf additional value addedCould be created throughElimination of rework

s

Philosophy of Lean Thinking

Housing supply chain characteristics

Temporary OrganisationHeterogeneous nature One of a kind production Intricate activities Length of production cycle

Housing supply chain characteristics

Main Contractor

Sub2 Sub3 Sub4 Sub5 Sub6 Sub7 Sub8 Sub9 Sub70

Sub1

Rework

Classification of Rework

Change

ErrorOmission

Damage

A direct action altering the established requirement

Human related activities Any part of system that has left out

May cause by subcontractors, Employees, adverse weather

condition

Cost of Rework

• Direct cost – such as labour poor performance, extra material usage, cost overrun

• Indirect cost – client dissatisfaction, lose of future contract , poor moral,

12 % of contract value –which could well range up to 25 %

Cost of Rework

Tendency of 22% time

overrun

Root causes of rework Factors contribute to higher level of defects• Contractual pressure in terms of

cost and time

• Lack of supply chain co-ordination

• Delay in decision making by clients

Root causes of Rework

Information flow among supply chain participants

Causes which occur outside the production process –beyond contractors control, e.g. unilateral client change

85% From Former

15% From Latter

ReworKFrom Former

From Latter

Root causes of rework

• Design and poor reviews• Personnel capabilities • Lack of communication• Poor management

Contributors

• Fragmentation • Unrealistic scheduling • Frequency of variations • Lack of skilled labour • Unclear instruction to workers• Untimely supply of material• Poor workmanship

Root causation

Current barriers & practices

Cultural differences and resistance to change

Shortage of skilled labour

Existing aging labours

Workflow of process

Poor performance of labours

Lack of competency among supervisors

Lack of training and workshops

Industrialised Housing and automation

Preliminary findings

Lack of collaboration among supply chain Lack of transparency and trust – Adversarial relationship Poor workmanship Lack of innovative approaches

Thank you for your attention