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CE267F – High-Tech Building and Industrial Construction

Iris D. Tommelein, Professor

www.ce.berkeley.edu/~tommelein215-A McLaughlin Hall

tommelein@ce.berkeley.edu

L1&2 - Fall 2001

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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

www.ce.berkeley.edu/~tommelein/CE267FF01HO1.htm

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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

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Characteristics

• One-off Projects• Complex Owner• Capital Intensive

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Industry Sectors

Residential 30-35% of market

Building 35-40%

Heavy Civil 20-25%

Industrial Construction 5-10%

Public 25% Private 75%

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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

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Objectives

faster – better – cheaperproductivity – quality – reliability

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Facility Need for Organizational Function

Architectural Charette to

Define Need

Proposal for Construction

Plan for Construction

Architectural Suppliers

Engineering Suppliers

Subcontractors

On-Site Construction

Financing Suppliers

Project Management

Supplier

Commodities, Contols and Bulk

Materials

Plan for Equiping Plant Equipment

Suppliers

Engineered Material Module

Suppliers

Plan for Use

Start-up of Use

Human Resources Suppliers

Regulation Compliance

Suppliers

Full Use to Meet Need

Equiping Plant

Construction Worker Suppliers

Material Suppliers

CONSTRUCTION BUSINESS

MODEL

Government Agency Suppliers

Construction Equipment Suppliers

Location Suppliers

James C. Hershauer

April 17, 2000

Facility, Utility, & Maintenance

Suppliers

Logistics Suppliers

Transportation Suppliers

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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.

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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’

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Transactional

Contracts For

Delivery

Faster Better CheaperProjects are becoming increasingly

challenging

Production Task

System

Organization

Stodgy- Simple- Slow- Certain

Dynamic- Complex- Quick- Uncertain

Relational Contracts

For Behavior

Lean Construction Institute 1998

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The SituationCustomers 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

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“So complex that you have to be highly intelligent and well

informed just to be undecided about them.”

Laurence J. Peter

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Construction Management

Technical Issues Product Process

Contracting and Legal Issues Economical Issues Organizational Issues

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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, …

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Process Focus

Few problems are simple enough to allow for closed-form analytical solutionsHumans in the loopPlanning and Simulation Process Models with Resource Interactions Organizational Modeling Product Models

Object-oriented Databases 4 D CAD Animation

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Challenges

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

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Systems-level Theory

We have no explicit theory in the Architecture-Engineering-Construction (AEC) industry

Production Management Theory

is VERY Promising!

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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

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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

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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?

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California Energy Crisis

Deregulation Alert levels Stage 3 alert: power reserves fall

below 1.5% of demand

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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

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Light Bulbs

Incandescent light bulb Compact fluorescent lamp

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Compact Fluorescent Bulb

From www.bulbs.com visited 8/24/01