1 CE267F – High-Tech Building and Industrial Construction Iris D. Tommelein, Professor A McLaughlin Hall L1&2 - Fall 2001

2 Course Logistics My background Handouts Class time and field trips Student information sheet Guest speakers Individual homework Term project in teams of 2-3 Reading materials Tao and Janis – textbook e-Reader on class website

3 Construction: a Service Industry service = providing advice (knowledge) or support (skilled people) to the customer (as opposed to simply handing over a product) 6% of workforce is employed directly in construction industry (5-6 mio workers) expenditures over $800 billion per year in new construction (65% of work) 7-11% of Gross Domestic Product need to concurrently design the product and the process

4 Characteristics One-off Projects Complex Owner Capital Intensive

5 Industry Sectors Residential 30-35% of market Building 35-40% Heavy Civil 20-25% Industrial Construction 5-10% Public 25% Private 75%

6 Construction? Architecture & Engineering Design 2-10% of Project Cost Materials 40-70% of Project Cost Construction 30-60% of Project Cost MORE than design-construction integration Feasibility & Concept Development Design Procurement Fabrication On-site Construction O&M Decommissioning Turnover & Startup PROJECT

7 Objectives faster – better – cheaper productivity – quality – reliability

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9 Construction Services Concept development and Design Construction labor Operations and maintenance Manufacturing companies move into construction to deliver life-cycle solutions Developers lease and maintain ready-to- use facilities Financing, Legal advising, etc.

10 Challenges Product vs. Process Project vs. Production Centralized vs. Distributed Problem Solving, Decision Making, and Control Even big construction players... are still small Globalization vs. local construction e.g., engineering ‘around the clock’

11 Transactional Contracts For Delivery Faster Better Cheaper Projects are becoming increasingly challenging Production Task System Organization Stodgy - Simple - Slow - Certain Dynamic - Complex - Quick - Uncertain Relational Contracts For Behavior Lean Construction Institute 1998

12 The Situation Customers demand better performance. Projects are complex, uncertain, and quick. Increasing % are brownfield projects (vs. greenfield) Current management tools are appropriate for simple, slow, and certain. Technology is changing rapidly Increasing number of technical systems in all facilities  e.g., wired buildings for communication and environmental and safety controls  e.g., bridge and highway instrumentation Specialty contractors know more Suppliers are moving into design & construction Serious problems - inadequate partial solutions Working on the wrong problem = conceptual failure. after Lean Construction Institute 1998

13 “So complex that you have to be highly intelligent and well informed just to be undecided about them.” Laurence J. Peter

14 Construction Management Technical Issues Product Process Contracting and Legal Issues Economical Issues Organizational Issues

15 Technical Issues (mostly PRODUCT focused) Quantitative Models Numerous Discipline-specific Design Tools Data exchange (integration, detailing, tolerances, …) Qualitative Models Databases Decision Capture and Analysis Tools (KBES, data mining,...) Web-based systems for communication and collaboration, …

16 Process Focus Few problems are simple enough to allow for closed-form analytical solutions Humans in the loop Planning and Simulation Process Models with Resource Interactions Organizational Modeling Product Models  Object-oriented Databases  4 D CAD Animation

17 Challenges Hands-on Experience vs. Learned Theory Engineering vs. Management People

18 Systems-level Theory We have no explicit theory in the Architecture-Engineering-Construction (AEC) industry Production Management Theory is VERY Promising!

19 Theory of Lean Production Lean Production = Build to Order System akin to agile mfg., mass customization, …  Conversion, Flow, and Value  Management of Uncertainties  Throughput, cycle time, buffers (handoffs between stations, time delays), etc.  Concurrent engineering, set-based design, postponed commitment, etc. Extended to product development and delivery Adapted for project-based production = Lean Construction

20 Course Objectives Focus on Specialty Contracting Industry Impart Product Knowledge  Mechanical Systems incl. HVAC  Power generation and Electrical Systems  Plumbing and Piping Systems  Building Controls Systems Introduce Systems-level Engineering Tools Lean Construction Virtual Projects  Simulation and Prototyping  Multiple participants and discipline teaming Collaborative & Concurrent Engineering Supply-chain Management

21 Considerations for making Product-Process Tradeoffs Product Appearance, offering, purchase price, etc. Process Procurement availability, ease of installation, etc. TIC = Total Installed Cost O&M Operating cost (e.g., California Energy Crisis) Replacement labor TCO = Total Cost of Operation Decommissioning Owner values  What are yours?

22 California Energy Crisis Deregulation Alert levels Stage 3 alert: power reserves fall below 1.5% of demand

23 Building Development vs. Technological Innovation  Structural steel  Taller buildings  Elevators  Increased floor plan  Offices further from natural light  Central core has no natural ventilation/cooling  Air conditioning  Additional lighting  More heat  Fluorescent light  Lower heat generation  Lower power consumption

24 Light Bulbs Incandescent light bulb Compact fluorescent lamp

25 Compact Fluorescent Bulb From visited 8/24/01www.bulbs.com