Construction customers want more complex facilities delivered faster and at a lower cost. Transaction costs account for a significant proportion of each new or refurbished facility (a 2017 report from the Infrastructure Client Group in the UK suggests as high as 50%), yet they contribute no value to the customer. Blockchain is being suggested as a way to reduce transaction costs by eliminating the need for intermediaries to build trust as a prerequisite for successfully executed agreements. This study first describes the thinking that underpins blockchain technology, outlining how it works, and the potential limitations of the technology. Second, using a case study, reviews the potential cost savings from the use of blockchain for a real estate company. The results reveal a potential cost savings from blockchain deployment at 8.3% of the total cost of residential construction, with a standard deviation of 1.26%. Third, we explore the implications, risks and applications of blockchain technology for improving flow in the end-to-end design and construction process and we identify opportunities for future research on blockchain applications in construction.
There is no agreed definition of lean construction. This is a problem for some and not for others in the lean construction community and beyond.Answers to the question "what is lean construction?" from a simple survey reported here, on the web and in the formal and informal literature reveal a diversity of views. The purpose of the survey was to get a sense of the definitions-in-use in the lean construction community.Some of the implications for the community are outlined and suggestions made for further study.
Tasks most likely get done right when the performers' criteria match the criteria of those who receive the completed task (the customers). Knowledge in construction is mostly tacit. Making the tacit explicit is challenging and has to be conversational. Everyday learning and the structured planning conversations in the Last Planner ® System (LPS) can help make tacit knowledge explicit. This conceptual paper explores the connections between learning, understandings of criteria and rework in project-based production to understand, how can we reduce rework on projects that arise from performers' misunderstanding of customer criteria for each task?The preliminary findings are a) Less rework will be required when performers can develop a shared understanding of the criteria for each work task with their customers; b) Shared understanding is most likely when the criteria are explicit; c) Everyday learning will enable the process of making tacit information more explicit.This paper has implications for practitioners as everyday learning and shared understanding will help workers at all levels to continuously share and learn while feeling psychologically safe enough to make mistakes and learn from them. It also suggests further multi-disciplinary research in the area of shared understanding and rework.
The aim of this study is to explore how offsite fabrication (OSF) can be tightly coupled with production and assembly on-site. Prefabrication is a production method that has potential to yield significant productivity and sustainability improvements in the construction industry. Failure to synchronise production in the factory with on-site production can lead to financial losses for the client/owner, main contractor and subcontractors as well as to delays in the construction schedule. The study draws on two case-studies and the authors’ experiences in the context of a critical review of literature on the concepts of flow and Just-in-time (JIT) construction delivery. The findings show the value of a buffer between suppliers, fabricators and the site as a way to help the whole supply team create production flow and more environmentally friendly results. A buffer can help while the team is learning to use collaborative short-term planning to create predictable production. The paper recommends ways to synchronise OSF with on-site production. The paper provides practitioners with ideas to reduce both work waiting for workers (or robots) and workers (or robots) waiting for work – and it contributes to theory by raising more questions for further research.
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