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The Precast Concrete Industry

A proposal for the adoption of advanced Information Technologies

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Introduction1. Existing processes and business environment.

2. Available and suitable information technologies.

3. A framework target plan, including assessment of potential benefits.

4. Assess the expected costs of achieving the plan.

5. Analysis of the readiness for implementation of the framework plan.

6. A detailed plan for the next incremental step.

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Part 1: Environment - Scope

What is Precast Concrete Construction ? • Construction of buildings and other

facilities using precast concrete elements;

• Precast concrete elements are reinforced concrete elements produced in a dedicated plant. They are transported and erected after curing.

• For examples - Precast Concrete Institute

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Part 1: Environment - Scope

What sub-sectors are there ? • Architectural Precast generally includes the

production and erection of precast panels for facades of buildings.

• Structural Precast generally includes production and erection of structural systems (assemblies of precast elements), and in certain instances of complete buildings.

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Part 1: Environment - Scope

An economic review

• approximately 380 plants in Canada, the US and Mexico, operated by some 160 producer companies.

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Part 1: Environment - Scope

Units $ '000 000 Precast Total New Construction Share

Public and Commercial Buildings 3,346$ 143,297$ 2.3%

Hotels, Motels and Housing 352$ 38,356$ 0.9%

Bridges 640$ 10,209$ 6.3%

Other 443$ 46,063$ 1.0%

Single Family Houses 13$ 175,296$ 0.0%

Total 4,794$ 413,221$ 1.2%

w/o houses 4,781$ 237,925$ 2.0%

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Part 1: Environment - Scope

28%26%

20%18%

13%

6%

1%

56%

0%

10%

20%

30%

40%

50%

60%

Finland Germany UK Spain France Italy USA Turkey

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Part 1: Environment - Scope

Who is involved ?

• Owners/Clients• Architects• Structural Engineers• Precast Concrete Producers and Erectors• General Contractors• Material Suppliers• Designers and providers of other building systems

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Part 1: Environment - ProcessWhat activities are there ?

• Win contract and acquire project• Assembly design• Detailed design• Planning and Scheduling• Production• Handling - Storage and Shipping• Erection

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Part 1: Environment - Process

What are the information dependencies ?

• Building design (geometry & systems)• Product design• Materials Procurement• Plan, Schedule and Production• Erection• Company Management information

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A High Level Process Model

Top-level External Activity

Top-level Internal Activity

complete project

abandon project

Acquire Project Do Detail Design Fabricate

Check Quality Assurance

Prepare Molds Check Quality No.2

Move to Yard

Schedule Engr. Staff

Material Cost Database

Labor Cost Database

Plant Scheduling

Prepare Project Schedule

Billing for Project

Deliver to Site Erect Structure

Yard Layout Planning

Prepare Reinf. & Hardware

Prepare/track bill of Material

Prepare Batch Instructions

LEGEND

Static Info Source

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Part 2: Information Technologies

What is in use ?

• CAD – 2-D drafting e.g. Precast Drawings

• Structural Design applications e.g. LEAP

• ERP software (production planning, materials management, human resources, accounting, etc.)

• Scheduling software

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Part 2: Computerization for Design

Use of CAD in Precast Concrete Companies

AutoCAD81%

Outsource4%

Other CAD15%

92% 8%

(PCI/CPCI Survey 2001) (Arditi et al. 2000, ASCE Journal of Architectural Engineering)

59%

41%

41% of producersreported encountering

problems in production due to ambiguities in

design “often” or “very often”.

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Part 2: Information Technologies

What is the effectiveness of IT use ?

• Errors are commonplace.

• No integration – data is re-entered for each application.

• Examples…

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Office Building

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Parking Deck 1

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Parking Deck 2

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Parking Deck 2

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Prison Complex

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Arena

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Part 2: Information Technologies

What else is available ?

• CAD: 3-D Modeling

• Rendering, Animation and Virtual Reality,

• CAM and Robotics,

• B2B, collaboration portals,

• Product Model based integration,

• Automated data collection and monitoring

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Part 3: A Framework Target Plan

• What are the long-term IT goals ?

• What are the short-term IT goals ?

• Potential local benefits – activities and cost-centers

• Potential system benefits in the supply chain

• A future process model

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Integration

Process planningapplication

Design application

Analysis application

Shop drawingApplication

IntegratedPrecast/

PrestressedData model

Rebar bending application

Design Stage

Architect or contractor

Mold design application

Production Stage

Robotics applications

Logistics and production app.

Scheduling and workflow app.

Materials order/ tracking app.

EnterpriseApplications

Material suppliers

“B2B”exchanges

Formwork fabricator

Outside

Exchanges

Internal

Exchanges

(Eastman & Augenbroe, 2000, presentation to PCI)

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3-D Modeling

Process planningapplication

Design application

Analysis application

Shop drawingApplication

3D Modeling

of Precast

Buildings

Rebar bending application

Design Stage

Mold design application

Production Stage

Robotics applications

Logistics and production app.

Scheduling and workflow app.

Materials order/ tracking app.

EnterpriseApplications

Internal

Exchanges

(Eastman & Augenbroe, 2000, presentation to PCI)

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Part 3: Local benefits

• Reduced drafting hours/salaries

• Reduced drafting and production errors

• Shortened sales response time

• Shortened time to erection

• Improved management information flows

All of the above = Increased Market Share.

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Part 3: Supply chain benefits

• Improved coordination with and support for project architects and engineers.

• Shorter activity times for GC.

• Lower overall cost for Owner.

• Shorter overall duration – benefits all.

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Part 3: A future process model

Precast Process Model

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Part 4: Expected Costs

• What are the ‘hard’ costs ?– Initial investment in hardware and software– Annual maintenance fees– Training fees and salaries– Equipment

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Part 4: Expected Costs

What are the ‘soft’ costs ?– Business re-organization and adaptation– Decreased productivity during ‘learning-curve’

period.– Management time (salaries)– Opportunity cost

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Part 5: Industry Readiness

• What are the conditions that must exist ?

• Which conditions are presently satisfied ?

• Which conditions can be satisfied in the short-term?

• Which conditions can be satisfied in the long-term?

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Part 5: What conditions must exist ?

1) Significant value-added portion

2) Perceived economic benefits

3) Available production automation technology

4) Computerization in the business environment

5) IT integration in external environment

6) Modeling software

7) Product model integration

Preconditions

Conditions

Necessary Developments

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Part 5: Industry Readiness• Which conditions are currently satisfied ?1) Significant value-added portion

2) Perceived economic benefits

3) Available production automation technology

4) Computerization in the business environment

5) IT integration in external environment6) Modeling software7) Product model integration

Materials are 15-20% of product cost

Yes; especially schedule, error reduction and market share

Yes; rebar, mold, casting and finish automation is available

Yes; enterprise management systems are common

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Part 5: Industry Readiness• Which conditions can be satisfied in the

short-term?1) Significant value-added portion

2) Perceived economic benefits3) Available production automation technology4) Computerization in the business environment5) IT integration in external environment

6) Modeling software

7) Product model integration

Yes; development is now under way by Tekla. For example…

Yes; development is now under way by Georgia Tech

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Part 5: Industry Readiness• Which conditions can be satisfied in the

long-term?1) Significant value-added portion

2) Perceived economic benefits3) Available production automation technology4) Computerization in the business environment

5) IT integration in external environment

6) Modeling software7) Product model integration

Through the IAI ?

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Part 6: The Next Step• What technologies and resources are

required ?– 3-D Modeling Software and Product Model– software and model development teams– industry technical working teams– financing

• What short term benefits are expected ?– reduced errors,– reduced lead times,– reduced engineering costs.

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Summary

1. Existing processes and business environment.

2. Available and suitable information technologies.

3. A framework target plan, including assessment of potential benefits.

4. Assess the expected costs of achieving the plan.

5. Analysis of the readiness for implementation of the framework plan.

6. A detailed plan for the next incremental step.

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Precast Concrete Industry - Role 1

Welcome.

As you listen to this presentation, try to consider the issues from the point of view of an imaginary interested party. Try to protect your interests by asking questions and asserting your views ! To help you prepare, here is a description of your role:

You are the CEO and president of a medium sized precast concrete production company. The company specializes