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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 [email protected] ELECTRI Council Meeting July 22 – 23, 2013

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Page 1: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

Industrialization of Electrical Contracting

Supply Chain and Logistics Management

Santa Clara UniversitySchool of EngineeringDepartment of Civil Engineering

Hisham Said, Ph.D.

Assistant ProfessorSanta Clara University

Santa Clara, [email protected]

ELECTRI Council MeetingJuly 22 – 23, 2013

Page 2: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

2

Introduction

Introduction Research Objectives

Research Plan

Industry Benefits

Construction IndustrializationThe 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.Closed System

Open System

Manu-facturing

Craft Production

Car Industry

Modular Construction

Off-Site Prefabrication

On-Site Assembly & Fabrication

Stick-Built Construction

Open Building Manufacturing

Revised version

of CABA 2009

Page 3: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

3

Introduction

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

Page 4: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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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.

Page 5: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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

Page 6: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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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

Page 7: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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. www.portafab.com

Page 8: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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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 NECA’s local and national meeting.

Page 9: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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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 Task2013 2014

8 9 10 11 12 1 2 3 4 5 6 7

1) 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

Page 10: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

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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

Page 11: Industrialization of Electrical Contracting Supply Chain and Logistics Management Santa Clara University School of Engineering Department of Civil Engineering

Industrialization of Electrical Contracting

Supply Chain and Logistics Management

Santa Clara UniversitySchool of EngineeringDepartment of Civil Engineering

Thank you!

Questions and

Comments?