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
