Lean Production Opportunities for a Steel Frame Modular Manufacturer
Executive Summary:
In collaboration with the Manufactured Housing Research Alliance (MHRA) and with funding from U.S. HUD and NYSERDA, researchers took the first steps in developing the lean production techniques that will shape the homebuilding factory of the future. Goals include: 1) increase design and production flexibility expanding the range and type of building solutions offered by modular and HUD-code home producers while cost effectively increasing production efficiency, 2) produce and install homes with zero defects, and 3) eliminate waste in all forms, including cycle times, building materials, and labor utilization. Research efforts began by benchmarking the production performance of factory homebuilding plants nationwide. Using survey results from over 140 HUD-code and modular plants, the benchmarking study compared and contrasted their performance over a broad range of production indicators describing quality, efficiency, employee satisfaction and safety. To compare plants within similar markets, the survey population was divided into seven groups based on product type and geographical region.One plant, a steel frame modular home manufacturer located in Brooklyn, NY, was selected as a case study for the development of lean production techniques. Production metrics for the case study plant were compared to industry benchmarks. A concurrent engineering process was employed to identify production, energy efficiency and structural engineering improvements to the plant and its products. The research team included architects, a structural engineer and UCF industrial engineering researchers. The team identified a comprehensive set of improvements and determined that there was an opportunity to substantially improve production labor efficiency, dramatically increase capacity - without additional plant or equipment, and reduce rework and service cost. To achieve these goals would require little capital investment, but would require time and dedication from management and substantial cultural and operating change. The effort concluded with a 2-day kaizen rapid process improvement event to demonstrate and initiate the lean improvement process.
Technical Reports & Papers:
Manufactured Housing Research Alliance, Develop Innovations in Manufacturing Processes through Lean Production Methods, U.S. Department of Housing and Urban Development, Affordable Housing Research and Technology Division, Washington, D.C., October 2005. [download report]
