Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering Hisham Said, Ph.D. Assistant Professor Santa Clara University Santa Clara, CA ELECTRI Council Meeting July 22 – 23, 2013

2 Introduction Research Objectives Research Plan Industry Benefits Construction Industrialization The hope to improve the productivity of the construction industry as a whole and the electrical contracting industry. How to industrialize the Business? through the extensive use of off-site customized prefabricated components/modules and mechanized continuous work processes of manufacturing, handling, logistics and installation. Revised version of CABA 2009

3 Introduction Research Objectives Research Plan Industry Benefits Industrialization of Electrical Contracting For over a decade now, Electrical Contractors have started down the path of industrialization (prefab, off-site) Current Major Challenge: Adopt to and manage the industrialized supply chain. Material Contractual Information Owner Construction Site Architect/ Engineer General Contractor Electrical Contractor Distributer /vendor Components Manufacturers Traditional Construction Supply Chain

4 Research Goal and Objectives Overarching Goal: study the impact of industrialization on the electrical contracting community in terms of the adoption of new supply chain practices and the implementation of novel logistics management systems. Introduction Research Objectives Research Plan Industry Benefits Research Objectives: 1)Analyze contractual and logistics arrangements with electrical vendors to incorporate their industrialization processes. 2)Investigate electrical manufacturers & distributors role in industrialized supply chain and logistics. 3)Study the design modularization requirements for industrialized electrical construction.

5 Research Plan Task 1) Analyze contractual and logistics arrangements with electrical vendors Survey (questionnaires and interviews) a sample of electrical contractors to document and analyze their contractual arrangements with their vendors and the resulting logistical arrangements: Introduction Research Objectives Research Plan Industry Benefits Sample will be drawn from: o Northern California (Silicon Valley) o Midwest (Chicago, Indianapolis) o Companies participated in previous ELECTRI studies

6 Research Plan (cont.) Task 2) Investigate electrical manufacturers and distributors role in industrialized supply chain Survey major electrical manufacturers to identify their role and reaction to construction industrialization in terms of change in products standardization. Learn from manufacturers what they have done to improve logistics and leverage the supply chain. Initial list of manufacturers & distributors include: Introduction Research Objectives Research Plan Industry Benefits

7 Research Plan (cont.) Task 3) Study design modularization requirements for industrialized electrical construction Investigate the impact of modularization on design practices and constraints by analyzing available case studies obtained from electrical contractors, architects, and designers. Example of modularization issues include: Introduction Research Objectives Research Plan Industry Benefits 1)Reduced complexity (plug-and-play). 2)Standardization (reproduction of component and joint details). 3)Reduced onsite work (less joints and connections). 4)Interface with other building systems (plumping, mechanical, etc.). 5)Transportation weight limitation.

8 Research Plan (cont.) Task 4) Develop Best Practices of Electrical Construction Industrialization Perform second set of interviews to confirm and propose best practices of electrical construction industrialization. Outcomes documented as: Introduction Research Objectives Research Plan Industry Benefits a) Study Final Report: which includes: o List of standardized products to facilitate industrialized production o Recommended contractual and partnership arrangements o Logistics planning framework for material and products flow b) Instruction Material: provide the following to NECA members: o Short course in NECA Management Education Institute. o Seminar in NECAs local and national meeting.

9 Research Plan (cont.) Work Plan Study will be mainly performed by the PI with the support of SCU graduate student and research assistants. Introduction Research Objectives Research Plan Industry Benefits Research Task ) Analyze contractual and logistics arrangements with vendors 2) Investigate electrical manufacturers role in industrialized supply chain 3) Study design modularization requirements 4) Develop Best Practices of Electrical Construction Industrialization

10 Benefits to the E Industry! Industrialization has more potential to benefit electrical contractors than any other specialty contractors: o Electrical systems are almost standardized! o Highly-trained workforce. o Record of successful cases of prefabrication and off-site production Introduction Research Objectives Research Plan Industry Benefits This study will facilitate the sharing of industrialization knowledge gained in the NECA community and propose additional practices: o Contractual and partnership arrangements with vendors. o Manufacturers & distributors involvement and innovation. o Design modularization and production planning

Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering Thank you! Questions and Comments?