UNIVERSITY OF MANCHESTER INSTITUTE OF SCIENCE AND TECHNOLOGY MANCHESTER CENTRE FOR CIVIL AND CONSTRUCTION ENGINEERING INTEGRATING SPECIALIST CONTRACTORS IN EARLY PROJECT DESIGN STAGE A dissertation submitted to the University of Manchester Institute of Science and Technology for the degree of MSc. Management of Projects By Amer Abu-Zeineh Manchester, United Kingdom September 2004
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UNIVERSITY OF MANCHESTER INSTITUTE OF SCIENCE AND TECHNOLOGY
MANCHESTER CENTRE FOR CIVIL AND CONSTRUCTION ENGINEERING
INTEGRATING SPECIALIST CONTRACTORS
IN EARLY PROJECT DESIGN STAGE
A dissertation submitted to the University of Manchester
Institute of Science and Technology for the degree of MSc. Management of Projects
By
Amer Abu-Zeineh
Manchester, United Kingdom
September 2004
To
My Beloved Parents
MSc Dissertation Declaration
A. Abu-Zeineh i
DECLARATION
I declare that no portion of the work referred to in the dissertation has been submitted in support of an application for another degree or qualification of this or any other university or other institution of learning.
MSc Dissertation Acknowledgments
A. Abu-Zeineh ii
ACKNOWLEDGMENTS
This research owes its existence to a number of people. First of all, I would like
to thank my supervisor Dr. Nuno Gil whose conscientious guidance throughout
this dissertation made it a success.
In addition, my appreciation and acknowledgements are expressed to Mr.
Eric Dean, the Managing Director of Modular, Mr. Terry Pye, Modular Design
Manager, Mr. Nick Gunn, the RBS Architect and Mr. Graeme Macmillan, the
RBS Project Manager, who spent their precious time with me sharing their
knowledge and providing me with valuable information for my research.
The best of my acknowledgments is given to my family and all those who
supported me in order to complete the present research.
MSc Dissertation Abstract
A. Abu-Zeineh iii
ABSTRACT
INTEGRATING SPECIALIST CONTRACTORS IN EARLY PROJECT DESIGN STAGE
BY
Amer Abu-Zeineh
Supervised By
Dr. Nuno Gil
Master of Science in Engineering Project Management
As the complexity of construction projects increases, the role of specialist contractors is evolving from one of builder to one of partner in creating the design solution. Their early involvement in the project design phase addresses designers’ needs to integrate more operational knowledge when they conceptualize their design solutions. Specialist contractors (SCs) may offer knowledge regarding their own products, work capabilities, and production constraints. They can also help to develop creative solutions. Nevertheless, problems and obstacles may hamper this early involvement process and negatively influence the outcome.
This research investigates how SCs can be effectively integrated in the
early project design stages in construction projects. The research is based on the assumption that SCs’ role is largely equivalent to that of suppliers in manufacturing. Therefore, early supplier involvement in new product development projects has been investigated to learn lessons how SCs early integration can be successfully accomplished. The main research objectives are threefold: identify the advantages and disadvantages of the early SCs integration in design; address the main impediments that hinder such integration; and identify types of knowledge that SCs can contribute to the early project design phase. This study is based on field research on a real world case study for the world headquarters construction project of the Royal Bank of Scotland in Edinburgh.
The findings of this research indicate that early SCs involvement in design
allows for reducing projects cost, time, and quality uncertainty. It can also help to provide better control over onsite management. SCs can help to investigate design alternatives to reduce the overall project cost and lead-time. However, designers expect SCs to act as consultants rather than mere constructors if they are to participate in the early project design stage. A cultural change is therefore needed within SCs’ firms. Additionally, although face-to-face interaction has been found the healthiest way to leverage SCs’ knowledge during design, Information and Communication Technologies (ICTs) such as project extranets can offer opportunities to support this effort. This work identifies some other key factors behind the success of the early integration process: client support, mutual trust between designers and SCs, and long term relationships.
MSc Dissertation Table of Contents
A. Abu-Zeineh iv
TABLE OF CONTENTS
DECLARATION ...................................................................................................... i ACKNOWLEDGMENTS ....................................................................................... ii ABSTRACT ........................................................................................................... iii TABLE OF CONTENTS ....................................................................................... iv LIST OF TABLES ................................................................................................. vi LIST OF FIGURES ............................................................................................... vii LIST OF ABBREVIATIONS ................................................................................ viii CHAPTER ONE INTRODUCTION ............................................................ 1
1.1 Background ............................................................................................... 1 1.2 Problem Statement ................................................................................... 2 1.3 Buyer-Supplier relationship in Manufacturing .......................................... 3 1.4 Research Assumption ............................................................................... 3 1.5 Contribution to knowledge ........................................................................ 4 1.6 Research Purpose and Objectives ........................................................... 4 1.7 Conceptual Context ................................................................................... 4 1.8 Research Questions .................................................................................. 5 1.9 Research Methodology ............................................................................. 5 1.10 Research Scope ........................................................................................ 6
CHAPTER TWO EARLY SUPLLIER INVOLVEMENT IN NEW PRODUCT DEVELOPMENT PROJECTS .................... 7
2.1 Introduction ................................................................................................ 7 2.2 New Product Development (NPD) ............................................................ 7
2.2.1 Product Development and Construction Projects ......................... 8 2.2.2 Effective Product Development ...................................................... 9
2.3 Why Suppliers are Critical in NPD Projects ........................................... 10 2.4 Change in Buyer-Supplier Relationship ................................................. 10 2.5 Early Suppliers Involvement (ESI) in NPD ............................................. 11
2.5.1 The Extent of ESI in NPD Design Stage ..................................... 12 2.5.2 Supplier Design Responsibility ..................................................... 13
2.6 Advantages and Disadvantages of ESI in NPD ..................................... 14 2.7 Knowledge Exchange ............................................................................. 16 2.8 Barriers to Effective ESI .......................................................................... 16
CHAPTER THREE SPECIALIST CNTRACTORS IN CONSTRUCTION PROJECTS ..................................... 18
3.4.1 The Role of SCs in Construction .................................................. 21
MSc Dissertation Table of Contents
A. Abu-Zeineh v
3.4.2 Coordinating SCs’ Knowledge ..................................................... 22 3.5 Contractual Agreements ......................................................................... 24 3.6 Communication Systems ........................................................................ 25 3.7 Incentives to Promote SCs Early Involvement ....................................... 26 3.8 Involving SCs at Early Design Stage: Benefits and Obstacles .............. 27
CHAPTER FOUR THE CASE STUDY ANALYSIS AND FINDINGS ........ 27 4.1 The Case Study ....................................................................................... 28
4.1.1 The RBS Project ........................................................................... 29 4.1.2 Companies’ Profiles of the Case Study ....................................... 30 4.1.3 Why Modular? ............................................................................... 33
4.2 Modular System ...................................................................................... 33 4.2.1 Modular Design Process .............................................................. 34 4.2.2 Modular Manufacture Process ..................................................... 35 4.2.3 Modular Assembly Process .......................................................... 37
4.3 Types of SCs in RBS .............................................................................. 38 4.4 The Mechanism of Involving Modular in RBS ........................................ 38
4.4.1 The Contractual Agreements ....................................................... 39 4.5 The Objectives of the Early SCs Involvement ........................................ 40 4.6 Knowledge Exchanged and Communication Systems .......................... 42
4.6.1 Communication Systems .............................................................. 42 4.6.2 Types of SCs’ Knowledge ............................................................ 44
4.7 Impediments to Effective Early SCs Involvement .................................. 46 4.7.1 Two-stage Contract Problems ...................................................... 46 4.7.2 Cultural Problems ......................................................................... 47 4.7.3 Communication Problems ............................................................ 49 4.7.4 Other Problems ............................................................................. 50
4.8 Pros and Cons of Early SCs Involvement in Design .............................. 51 4.8.1 The Advantages of Early SCs Involvement ................................. 51 4.8.2 The Disadvantages of Early SCs involvement ............................ 54
CHAPTER FIVE CONCLUSION ................................................................ 53
5.1 Conclusion ............................................................................................... 56 5.2 Implications for Further Research .......................................................... 59
the package manager’s role includes procuring, managing and delivering
specific elements within his package. Mace is also responsible for the overall
coordination of the activities of the trade contractors but is not liable for any
failings on their part.
Michael Laird Architects and RHWL Architects (AJV)
Michael Laird Architects is one of Scotland’s leading architectural practices
based in Edinburgh. They entered into Joint Venture agreement with RHWL
Architects in London to carry out the RBS project design. They developed the
scheme design according to the client requirements and conducted a full scale
investigation about base manufacturers, suppliers that could carry out on-site
works. They worked under a direct management from Mace to fulfill their duties.
The architect actively collaborates with SCs who were involved during the
design stage as he believes that they have significant design inputs.
Modular Ltd.
Intelligent Modular Solutions Ltd. has recently been re-branded from Oakland to
Modular to reflect the continuing change in the core business of the company
from a fitting-out and specialist joinery contractor to a design-led high tech
manufacture-based organization. Modular is now specializing in computer
aided manufacturing and engineering bespoke interior design of prefabricated
products.
Because the construction industry is moving towards off-site and
prefabricated products, Modular has developed a new system for designing and
prefabricating toilets blocks. In addition Modular is currently developing a wall
system where large-scale walls up to 6m high can be produced. The system is
highly mechanized and has a lot of advantages over the traditional on-site
construction methods including: (1) Precise dimensions, the system takes out
human error elements of on-site construction, as it replaces the traditional
sequence fit out activities (e.g., building the wall, plumbing system, tile fixing),
with finished product; (2) Very high standard of quality control, Modular’s
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33
products is factory-based which makes it easier to get higher quality than site-
based construction elements; (3) Reduce lead times, it cuts down the time
needed to get the final product assembled on-site by approximately 40-50%
depending on the site condition and job complexity. However, the cost of the
product is 5-10% higher than the traditional approach.
Prefabrication is regarded as a solution to provide better controlled
environments over construction sites. Usage of Modular’s prefabrication
technology has resulted in substantial savings in both construction and
operating costs because of the system’s superior quality and efficiency.
4.1.3 Why Modular?
Effective collaboration exists between Modular and clients’ consultants in all
construction projects that Modular involved in. Their unique product places a
new dimension in their work strategy, as they are currently acting as a specialist
contractor. Designers have perceived the necessity to integrate Modular at
early design stage because it has the ability to develop creative solutions and
has better knowledge about their products and installation processes.
Moreover, Modular has experienced design manager and director who are
responsible for interacting with and influencing clients’ consultants as well as
facilitating the collaboration with them during the early design stage. They
attempt to seek a mutually consolidated design suitable for both Modular and
clients.
I personally involved in preparing a research about Modular processes. I
realized then that their current successful collaboration with the RBS design
team forms a fertile sphere to investigate the phenomenon of early
collaboration between SCs and designers during design.
4.2 Modular System
Modular has the following main processes: in-house design; manufacture and
assembly. The prerequisites of the processes are reliant on effective supply
chain management. Moreover, inventory management of raw materials and
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other auxiliary components is extremely important. Modular process maps are
shown in Appendix (B).
The major raw materials are prefabricated cement-particle boards, natural
and artificial stones for wall cladding and steel connector bars. Modular
apportions the provision of materials to multiple upstream suppliers to achieve
better prices and quality and maintain continuous flow in the supply chain.
4.2.1 Modular Design Process
The prime objectives of Modular are to assemble the toilets on the construction
sites with minimum additional reworks and timescale. Therefore, high accuracy
is crucial in design as well as in manufacturing. The design team is responsible
for designing the right elements of the toilets with accurate dimensions.
Incorrect designs can lead to erroneous production which may incur extra cost
of retrofitting the defected components. Also, the client’s consultants need to
provide precise design information and accurate fitting positions to Modular
design team (MDT) for better and comprehensive design development.
However in general practice, the clients are unable to provide accurate design
information in the conception stage of projects due to uncertainties associated
with the project specifications. Effective early collaboration between the clients’
designers and MDT at design stage of a project can reduce these uncertainties.
MDT develops design manual for every toilet. It consists of two main parts:
Part 1 consists of six pages report that is sent to the client’s consultants. This
report contains the toilet plans, elevations, and sections on a large drawing
scale. The second part consists of very detailed drawings for every panel. This
part is mainly utilized during manufacturing and assembly processes.
The followings are the main steps that are followed by MDT in toilets design:
On-site survey: Draftsmen carry out on-site survey to collect accurate
dimensions for the toilets elements as well as the fittings’ positions and
cuts. Precise drawings provided by clients’ architects can significantly
help in this stage.
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Agree the Final Design: After getting approval on the final design, MDT
produces their initial detailed drawings (Part 1). The drawings are
discussed with the client’s consultants and the final shapes, details and
specifications are approved. There is a flow of information between
Modular and the client’s architects to get their approval on part (1).
Detailed Drawings: Having obtained the approval for the design, MDT
starts working on Part 2 of the manual. During the design process, the
client may seek requests for information (RFI’s) which may result in
further discussions with the client side. The designs are subject to
changes due to uncertainties inherited in the construction and the client
needs. MDT uses AUTOCAD, INTELL (Smart) software in the design.
Design Amendment: As per new changes, MDT amends both parts of
the design manual and resends (Part 1) to the client to acquire the final
approval.
Joinery Drawings and Design Finalization: The designers provide a set
of detailed drawings of the joinery works for the toilets. The drawings
form a part of the design manual. The drawings are sent to the client
for approval. The stage of obtaining the final approval is called Status B
which implies that the client has approved the whole design. MDT
finalizes the design as per project plan.
Cutting List: MDT prepares a cutting list which includes the panels’
detailed dimensions to be used in the manufacturing phase. The
cutting list consists of detailed tables which contain the boards and
stones dimensions, shapes, cut sizes, grooves’ dimensions and other
information required by manufacturing.
4.2.2 Modular Manufacture Process
The manufacture system comprises of a series of processes which are
implemented to produce desired quality panels as per given design
specifications. This includes:
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Cutting of Cement Particle Board: The basic raw material required to
initiate the manufacturing is high quality 16 mm thick Cement Particle
Board known as VIROC. The cutting list (CAD information) is
transferred from MDT to manufacturers, where the respective cutting
information is written down on the respective boards. The Beam Saw
machine is used to cut the boards to the desired sizes.
Bonding & Sealing: Three cement particle boards of equal dimensions
are bonded together with glue and are passed through a Press to
ascertain firm sticking between the panels. After Bonding, the thickness
of the bonded panel would be 48mm for wall panels and 32mm for floor
panels of the bathrooms. The bonded boards are sealed together with
a sealant which establishes a balance in the boards and also
eliminates the environmental moisture out of the Board panels.
CNC operation—VIROC: The CNC operation at this stage drives the
entire manufacturing. Double bedded CNC is programmed to generate
holes, groves and cuts in the bonded boards for connecting systems of
the toilets such as pipe fittings, plumbing and joinery.
Stoning: At this station, cutting list of the stone is prepared according to
the precise dimensions of boards upon which the stone is to be
bonded. A 12 mm stone is cut on Beam Saw as per cutting list and is
sent for bonding onto the VIROC.
CNC final operation: After Bonding of stone onto the VIROCs, the
complete toilet panel is operated through a CNC, which precisely aligns
the edges of stones with the edges of VIROCs. (see Figure 4.2).
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Figure (4.2) - Stone Panels Bonded to VIROCs
4.2.3 Modular Assembly Process
Assembly is the final stage in Modular factory before dispatching the toilet kits
to construction sites. It comprises of:
Pre-assembly in Modular workshop: Pre-assembly in the factory is the
first step in the assembly system. The finished panels in manufacturing
floor will be directly sent to assembly shop for pre-assembly. Steel bars
are screwed up firmly on the vertical sides of each panel to connect
them together. The panels are erected and fixed together to build a
temporary toilet so as to test whether the total quality of assembled
toilet meets the requirements of the client.
Disassembly, packaging and dispatching: The temporary assembled
toilets are disassembled into panels for packaging. The panels then are
packaged and made ready for dispatching.
Assembly on construction sites: On arrival at construction sites, the
panels are unpacked in sequence according to their part numbers, and
then on-site assembling starts using a multipurpose vacuum machine.
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4.3 Types of SCs in RBS
Mace and the architect classify the RBS’s key specialist contractors, according
to their products nature and degree of competition, in two categories:
System suppliers - these are manufacturing system suppliers provide
assembled systems rather than individual construction components.
Their products are almost unique. Few competitors often exist to
compete against each other. For instance, Modular belongs to this type
of suppliers.
Part suppliers - these are typical specialist contractors who are
responsible for constructing and assembling specific parts and
components on-site, such as steel, HVAC, and roofing contractors.
Many part suppliers are often available to compete against each other.
The difference between system and part suppliers is that the latter produce a
composition of parts taken together on-site according to the design
specification while the former produce fully integrated prefabricated systems.
4.4 The Mechanism of Involving Modular in RBS
Mace has identified Modular as the most likely supplier for the toilet package in
RBS project since they provide high quality product with more cost and time
certainty. The client invited Modular to gain more information about its new
system and the accompanied advantages and disadvantages before taking the
decision to proceed in integrating Modular during the scheme development
phase. Modular was involved in RBS 18 months prior the start of the toilet fit-
out. They developed the design layout of the toilet blocks in conjunction with the
architect, the cost manger, and the project manager. There was a systematic
process of informing the designers and getting approval for every specific detail
in the toilets design.
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4.4.1 The Contractual Agreements
Mace has identified four different procurement routes in RBS: (1) single-stage
competitive tender; (2) two-stage competitive tender; (3) single-stage single
source tender; and (4) two-stage single source tender. Two-stage tenders are
the predominant route to involve specialist contractors during design. Mr. Nick
Gunn mentions some factors that influenced the procurement route selection
process. These are: type of contractors, contractors’ capabilities, reliability, and
job complexity. He believes that single source two-stage agreement is
appropriate when the job is unique and few specialist contractors can do the
same.
Mace has based their procurement routes selection process on the type of
specialist contractors as following:
System suppliers - Competitive tenders are rarely used to procure
systems since few competitors are available. Single source two-stage
tender was the predominant route to procure such kind of works.
Part suppliers - Competitive two-stage tenders are commonly used to
procure such parts as many contractors offer the same products.
During the first tender stage most design problems are sorted out and a final
design is developed. The architect employs various design inputs from the SCs,
the cost consultants, and the project managers to develop the base design. A
design agreement or consultancy agreement is signed for stage one. The
agreement covers SCs for any cost incurred during this stage. Further, it lays
responsibility on SCs to share their knowledge with the designers to develop
the final design.
Modular produced a mockup to get approval to proceed in their design after
the design agreement had been signed. At the end of phase one, the design,
cost, schedule and the implementation method were identified. The second
stage is the implementation phase where a traditional trade contract is signed
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for manufacturing and on-site assembling. Two-stage contracts enable the
clients’ consultants to integrate SCs’ design knowledge in their solutions.
4.5 The Objectives of the Early SCs Involvement
The objectives of early SCs involvement in RBS design phase vary between
project participants. Surprisingly, every party has its own objectives that are
different from others although some common objectives are observed. Mr.
Terry Pye considers that the early integration is imperative for Modular success
for the following reasons:
Eliminate competition – He believes that Modular early involvement
enables them to eliminate competitions because they designed their
product in a way that no other suppliers can compete against them.
Influence the design – Modular seeks to standardize its product as much
as possible to make it more economic. Their main objective is to develop
a robust design that can be used in more than one version of toilet
blocks and thus redesign is only needed for specific small parts.
Eliminate on-site construction problems – Because Modular’s product is
factory-based, all design problems, such as plumbing, electrical
equipments, and tiles fixing can be sorted out during design and prior to
manufacturing.
Avoid design rework - Modular is encouraged to share the early design
efforts to guarantee that the developed design is a final version and
reworks will not be encountered after manufacturing starts.
Early knowledge about the project – Being a part of the development
team from the design inception has helped modular to gain detailed
knowledge about RBS and the personnel involved. Mr. Terry believes
that more effective communication occurs when having early information
about the project and the people involved.
Building strategic relationship with the client and the design team – This
can be classified as a strategic objective. Mr. Terry Pye believes that
their early involvement opens the opportunity to work with the same
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design team members in future projects. In addition, he states that being
responsive during the early design process helps to develop strategic
relationships with clients, architects and project managers.
Moreover, providing the designers with valuable information during the design
phase may enhance the competitive positions of SCs and raise their level of
involvement at early design stage. This is further reinforced by a comment from
Mr. Eric Dean:
“Our involvement in the design phase becomes imperative. I expect the extent
of our involvement in the design process to increase because we possess
valuable information.”
Excerpt from Interview with Modular Design Manager
On the contrary, the project manager and the architect state that the main drive
behind involving SCs in the design phase is to acquire as much as possible of
cost, time and quality certainty. Mr. Graeme Macmillan believes that involving
production companies in the design phase helps to achieve 100% design
before switching to the implementation phase:
“…it is all about achieving cost, quality and program certainty as much as
possible. The objective is to have 100% design before the works start on-site. It
is not to achieve 75% design, which normally happens in construction projects,
and then start construction.”
Excerpt from Interview with the Project Manager
Moreover, the architect believes that having specialists’ knowledge in the
design eliminates a lot of design and construction risk before moving to the
implementation phase. He stated that architects are not specialists in toilets’
design and other specialized building parts. It is difficult for them to develop
design for such elements without having design inputs from SCs.
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4.6 Knowledge Exchanged and Communication Systems
Interviewees were questioned on the types of information exchanged in RBS
and types of communication links used.
4.6.1 Communication Systems
The first issue dealt with was the type of communication systems used between
RBS and Modular. The interviewees agreed that efficient collaborative design
requires more communication between team members. Mr. Nick Gunn believes
that communication is essential between the architects and the SCs during the
design phase. He stated that the process is about leveraging SCs knowledge
early on which needs channels to be swapped.
The project management was very keen to develop a high collaborative
design team whose members are tied together. The design team is based on-
site where a space was offered for every member. Modular design manager
has spent six months onsite working with the architect and Mace to develop the
final design. The project management offered Modular the whole facilities such
as private computer machine, access to project printers, and personal e-mail.
Admittedly, being collocated during the development stage facilitates face
to face contact which is the richest communication medium. Face to face
communication keeps communication cycles extremely short and provides
many cues and verbal modalities, such as facial expression, direction of gaze,
and body language or posture. Mace attributes the success of the integration
process to being on the same place and having direct interaction between the
design team members. Mr. Nick Gunn stated:
“…it is an advantage having everybody based in the same building on-site.
Being in the same place has helped us to know each other well, tackle design
problem in more efficient way and get instant feedback for any problem we
encountered.”
Excerpt from Interview with the Architect
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In addition, frequent visits between design team members are essential to
enhance the communication. For example, RBS design team visited modular to
approve the prototype which was developed at early design stage while
Modular manager and other personnel visited RBS project on weekly basis to
attend meetings.
Beside meetings and visits, current Information and Communication
Technologies (ICTs) offer more and more possibilities to support
communication. Interviews revealed that various communication systems have
been used in RBS such as Electronic Data Interchange (EDI) and Project
Extranet.
Extranet usage is the most prevalent tool used in communication between
RBS project participants. BIW project extranet system has been used by
Modular and the design team. It endows them the opportunity to share, modify,
store, organize, and create a range of documents including Request for
Information RFI, change request, maps, photos, scheduling, and drawings.
Modular’s engineers upload their drawings for the toilets blocks on the main
server which can be accessed by the design team members. Physical drawings
are rarely issued. Interviewees agreed that there are major advantages of using
project extranet in RBS. The following list summarizes these advantages:
Lower capital cost as access to the internet is all what is required.
Provides up-to-date information.
User-friendly interface.
Quick system.
Information security.
Easy to capture changes and know who is responsible for these
changes.
Post elimination and less papers.
Enhance the collaboration between project participants.
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The architect states that the key advantage of using extranet is that every party
can look at others’ works and adapt their work according to the new uploaded
information. Comments or new information can be placed on the main server
and then it can be easily integrated in the design. However, he stated that
although the usage of extranet was prevalent, there were always usage of other
systems such as faxes, e-mails, and telephones because they are easier, faster
and offer instant information and feedback.
4.6.2 Types of SCs’ Knowledge
Interviewees believe that the main drive behind SCs early involvement is to
leverage their knowledge at the early design stage. Generally, there are two
kinds of knowledge: tacit and explicit knowledge. Tacit knowledge is embedded
in individual experiences and involves intangible factors, such as personal
beliefs; it is hard to articulate with formal language and is commonly captured in
the term “know-how” (Nonaka 1991). In contrast, explicit knowledge can be
articulated into formal language, including grammatical statements,
mathematical expressions, specifications, and manuals; it can be processed by
a computer, transmitted electronically, or stored in databases.
Both SCs’ explicit and tacit knowledge are important during the design
phase. While explicit knowledge can be easily shared between people, tacit
knowledge is not easy to be transferred unless it is converted to explicit.
Information exchanges between Modular and the architect varies between
explicit and tacit. I asked the interviewees about the types of knowledge that
Modular contributes during the design phase. Interestingly, some types of
knowledge are observed to be important for one party but less important for
others. For example, getting the information regarding cost and time from the
SCs is high on the priority list of the project managers whereas types of
materials and technical knowledge were found more significant for the architect.
I spell out the types of knowledge that SCs can contribute to the early
design stage. I give examples about Modular for illustration.
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Materials specifications: It includes information about the
appropriateness of the materials and their capabilities and problems. For
example, Modular has not recommended marble-based tiles for toilets
floors as urine stains can easily change the color of some types of
marbles.
Methods statement: It is about informing the project manager and the
architect how the product will be put in. For example, Modular has given
information about their lifting methods and space needed for the product
and the machine used in assembling.
Cost and time: Modular provides the design team with the cost of their
product. They also inform designers about the product lead-time and
production cycle time.
Technical suggestions: Modular has provided designers with information
about space design required to allow construction to proceed efficiently.
They also provide them with their knowledge about plumbing, ventilation,
and electrics (e.g., types of urinals, washbasins, and lighting types).
Interviews revealed that the architect has little information about these
issues. For example, Modular asked the architect to move some walls
for a specified distance so they could use one large panel instead of two
panels. One panel makes it more economic for Modular to produce and
gives the wall more stability from an engineering point of view.
Process capabilities: Modular gave designers information about their
new system and its capabilities and adaptability to fit various interior
design purposes.
Product constraints: these include the constraints in manufacture,
assembling, getting raw materials from suppliers, transportation, and
labor availability.
Market information: This includes information about the latest
technologies in construction and new methods of implementations.
Maintenance & Serviceability: Information about how to maintain and
service the product is often given to the design team. For example,
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Modular informed the RBS designer how to service and maintain the
toilets including type of cleaning materials to be used, methods of
replacing specific plumbing and electrical defect parts.
Interviews revealed that the amount of information given by SCs to designers
varies in function of: (1) Level of competition: SCs are less willing to exchange
knowledge during the design phase when other potential contractors compete
against them during the implementation phase. (2) Job complexity:
prefabricated products require that detailed information to be shared with the
architects. (3) Commercial value: SCs are more willing to share their knowledge
during the design phase if the commercial value promises a relatively high
profit. (4) Relationship with designers: long-term relationship and trust
encourage SCs to offer more knowledge to the design. (5) Operation or
maintenance contract: The RBS project manager believes that SCs have more
enthusiasm to share knowledge with designers when they are promised to
maintain or operate the product during the operation and maintenance period.
4.7 Impediments to Effective Early SCs Involvement
The interviews revealed a number of barriers in involving SCs early on in
design.
4.7.1 Two-stage Contract Problems
Contractual arrangements influence the extent to which SCs participate in
design. The case study revealed the use of two-stage contracts to enable SCs’
early involvement. However, some risks and problems are hard to cover in such
type of contracts. The separation between design and implementation
agreements has caused many problems in RBS. These problems can be
illustrated as follows:
Extent and accuracy of SCs’ information. When SCs are involved in first
stage they have to share knowledge with designers. However, the
information they tell is less when the probability of winning the stage-two
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tender is low. One example given by the project manager is about the
cost accuracy. He stated that a SC involved early in RBS shared his
design cost with the design team. His cost was extremely competitive
and gave him the chance to win the implementation stage. Later, it was
discovered that the cost given during the design was unreasonable.
Risk of SCs failure. The SCs may perform effectively during the design
phase but fail to fulfill their on-site tasks during implementation due to
lack of experience, material, and budget. Bringing another new SC
would also be risky because he may fail to understand the design
developed by the former SC. Admittedly, depending on one contractor
for both stages exposes the project to same risk. The project manager
stated that looking for new SC and making him aware about the on-site
processes may take months, while the architect added that the design
may be reworked to fit the new SC’ capabilities.
Risk from client side: SCs who are selected during the design phase
may not have many incentives to share all their knowledge unless they
guarantee that they will be awarded the implementation stage. They are
afraid of losing their competitive knowledge for other SCs who work in
the same field if the client chose other SCs for implementation. The RBS
project manager stated that some SCs refused to provide the design
team with information about their onsite installation processes and raw
material sources. They claimed that these issues are private and do not
benefit the design development. They started, however, to give
designers this information when they guaranteed the second stage
tender.
4.7.2 Cultural Problems
Every company has its own culture that comprises a set of norms, values,
assumptions, tangible signs, members’ behavior, structures, processes, and
ways of doing works. Basically, organizational culture is the personality of the
organization (McKenna 2000). The early SCs involvement in the design phase
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places some challenges in the organizational culture. As people from different
companies and with different cultural attitudes have to work together, problems
on the individual and company levels may be encountered. On the individual
level, functional differences between collaborating employees may lead to
problems:
“I do not know much about Modular... they shared their knowledge and
suggested us to modify specific parts of our design. I was reluctant to change
anything in the design. They had their own opinion from a production point of
view and we had our own opinion from architectural point of view.”
Excerpt from Interview with the Architect
In addition, differences in technicality and construction processes may also
cause problems.
“There is a thinking difference. The design team and people on-site had little
knowledge about our system [Modular]. Designers saw new construction
process on-site; it is quit different from the traditional construction process.
Some problems have been encountered with the project manager and the
architect on methods of implementation and types of material used. They had
to adapt to our new system.”
Excerpt from Interview with Modular Design Manager
On the company level, cultural differences exist in the nature of companies’
work. The integration of contractors in the design phase requires them to
perform as design consultants as well. Otherwise, problems can arise.
“During the design phase, we expect SCs to act as consultants more than
contractors. Many of them still face tremendous problem to switch between the
two roles and find it difficult. Their main focus is how to make profits. This
happens because most of today’s SCs worked as pure contractors. They used
to receive the design and execute it on-site.”
Excerpt from Interview with the Architect
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All interviewees stressed that mutual trust in each other’s knowledge, skills, and
professionalism, as well as open communication, understanding the design and
implementation processes, and willingness to build long-term relationships can
help solving these cultural problems.
4.7.3 Communication Problems
Opportunities to support communication can be fostered through personal
visits, working in the same office, and using current ICTs. Interviewees
identified a number of communication problems that might hamper the early
collaboration process. Specifically, significant communication problems may
result from the use of ICTs. Although a project extranet has many advantages,
interviews revealed some problems in using it. For example, Mr. Terry Pye
stated that the huge number of project drawings places complexity in the
numbering and the uploading systems. If the system finds a problem, such as
numbering problems, it rejects the drawings and it is difficult then to understand
why they were rejected. Additionally, the extranet takes out human involvement
and face-to-face interaction.
RBS design team members believe that ICTs can not completely replace
face-to-face communication, but they extend the possibilities to exchange
information. They insist that face-to-face interactions and sitting around one
table to discuss the design issues is more efficient for knowledge exchange and
early collaboration.
Moreover, interviewees mentioned other communication problems. The first
problem mentioned is caused by inexperience of managers and engineers with
the possibilities of extranet. A second problem is that parties are reluctant to
exchange information on a subject that is still uncertain. A third problem is that
SCs may work for more than one client. Each may have a different
communication system. The SCs have to adapt to every client’s system which
make it often difficult for them.
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4.7.4 Other Problems
The lack of competition
This problem emerged in RBS when the project management relied on a single
source to procure specialized component. Sourcing products from a single
supplier is often used when there are no competitors able to provide the same
or better products. Monopoly and opportunism are the main problems that have
faced RBS when they depended on one SC during the design phase. This can
be illustrated by the following statements:
“…you need to have at least two SCs tendering for the same package.
Otherwise, a lot of obstacles will emerge in terms of achieving best value for
money. The main reasons behind the problems are monopoly and
opportunism… a single SC can apply changes without reasonable reason
because he knows that everybody relies on him and he is in a strong position”
Excerpt from Interview with the Architect
“Modular got the job without bidding since Modular was the only bidder for
phase two. This was because the design in phase one has been developed in a
way that took the whole competition out. Modular put itself in a situation that
they [RBS designer] cannot choose anybody else.”
Excerpt from Interview with Modular Design Manager
Lack of client support
Although the RBS project management was the initiator of the early SCs
involvement process, the client plays significant role in supporting and
approving the process. The lack of client support for the process may cause
problems. The Client must be informed regularly about the integration process
and the problems encountered. This can facilitate getting the client’s support
and resolve conflicts rapidly:
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“Bringing contactors early on during design to act as consultants is quite new.
Clients support for the process is crucial for its success. They have to
understand the integration process and its advantages. By doing so, it is easy
to convince the client to make changes if any problem emerges in the process
because he knows everything from the beginning.”
Excerpt from Interview with the Architect
Adversarial relationships
Having inconsistent team whose members have adversarial relationships may
hinder the integration and communication process. Design personnel may not
welcome the level of involvement of contractors in design because of the
perpetual contradicting relationships between designers and contractors.
Generally, the architect believes that the adversarial relationship may still exist
in construction projects; however, he added that the relationships with most
SCs do not fall under this type of relationship.
4.8 Pros and Cons of Early SCs Involvement in Design
Early SCs involvement in the design phase entails many advantages and
disadvantages. However, Interviewees believe that the integration process
encompasses more advantages.
4.8.1 The Advantages of Early SCs Involvement
Reduce cost, time and quality uncertainty
Reduce cost and time uncertainty is one of the main drives behind involving
SCs in the design phase. Traditionally, the design is developed by architects
and engineers without having reliable design inputs from contractors in terms of
cost and time needed for implementation. Thus, the cost escalates and a delay
hits the project when construction progresses. Winch (2002) defines uncertainty
as the lack of information required at a given time. It has two main sources:
complexity and predictability. Past experience is a reliable guide to reduce
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uncertainty. Cost and time uncertainty is very high during design. Thus,
leveraging SCs’ knowledge and past experience during the design may result in
reducing cost and time certainty:
“More schedule and cost certainty have been achieved as we worked hand in
hand together during design. We were 100% confident about our cost and
program before construction starts. Modular provided us with the precise cost
and time needed to get their product ready on-site.”
Excerpt from Interview with the Project Manager
In addition, involving production personnel in the design phase grants
opportunities to discuss the design comprehensively to reduce cost, time, and
increase quality. The architect stated that having SCs’ knowledge and
discerning their capabilities during the design phase helps designers to develop
better solutions. He gave an example that Modular has provided the designers
with high quality marble that fit the toilet usage better than that he proposed
initially.
Better control over on-site activities
SCs can provide clients and project managers with valuable information about
their potential on-site activities. For example, Modular provided Mace with
information about their field activities such as the number of on-site labor,
machines, stock area needed for their products, and time required for on-site
assembling. The project manager stated that such information from Modular
and other SCs has helped him to develop an early understanding about on-site
activities, develop smooth project program, maintain on-site workflow without
interruption, and achieve better site coordination.
Improve design efficiency and effectiveness
Interviewees stressed that the traditional approach of having only the designers
work on the entire physical layout without involving production people is simply
no longer viable. Designs are becoming complex and it is impossible for single
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designer to produce an optimum design unless having inputs from the SCs.
Design team which involves SCs is considered as a viable alternative. SCs’
design inputs provide engineers and designers with the efficiencies needed to
produce cutting-edge designs with less design reworks during the project life
cycle:
“Modular involvement in design resulted in a toilet design that can be easily
executed because it is developed by collaborative efforts… we had no design
reworks during construction.”
Excerpt from Interview with the Architect
Shift detailed designs to SCs
Adopting early SCs involvement may shift design tasks and responsibilities
from designers to SCs because the latter know more about their products. SCs
are able to produce better detailed drawings for their products especially those
who produce factory-based elements. During the design phase, designers can
transfer detailing of design to SCs who know better how to do it. This has a
major advantage as early detailed drawings can replace the detailed shop
drawings that contractors often produce during the implementation phase. For
example, the architect stated:
“The burden of preparing detailed drawings for the toilets has been shifted to
Modular. Their early prepared design manuals have saved the project time as
they replaced the shop drawings.”
Excerpt from Interview with the Architect
Getting better SCs’ prices and lead-time
SCs, during design, may have long time prior construction to investigate other
sources of raw materials, new suppliers, and methods of implementation.
Further, when a SC involved in more than one project, raw materials can be
ordered in bulk quantities and early during the projects design. For example,
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Modular had time to investigate other sources for the steel bars during their
involvement in the RBS design phase. They have got better prices from a new
supplier outside United Kingdom. Modular also benefits from their early
involvement in major construction projects in organizing their raw materials
orders. They attempted to prepare bulk orders to reduce the cost and the lead-
time of their products.
4.8.2 The Disadvantages of Early SCs involvement
Eased accessibility for competitors to copy or acquire key technologies
Many contractors may be involved during design, their knowledge and
experience is exposed to each other. This makes SCs less willing to share their
key knowledge with designers because the fear of losing their competitive
advantages for the competitors. Mr. Terry Pye mentioned that he is reluctant to
speak about Modular production processes when other contractors attend the
weekly meetings. He prefers private discussions with designers.
Clients pay a lot of money upfront
Clients often pay architects and engineers for developing design solutions.
However, they need also to pay the SCs when they are early involved. The
project manager stated that RBS paid a lot of money for Modular and other SCs
for their early involvement in design. He considered this as a disadvantage
because a large amount of money has been spent prior construction. He added
that clients often prefer to see their expenses result in physical buildings rather
than mere drawings.
Longer design lead-time
The time required by the designers to develop the entire design layout without
involving SCs is often short. The architect believes that the design lead-time is
longer when SCs are involved because designers have to deal with many
design inputs from various SCs:
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“SCs coordination consumes time and efforts which are not otherwise spent if
we [designers] develop the design unilaterally.”
Excerpt from Interview with the Architect
Despite these disadvantages, early SCs involvement during design phase is
regarded as an added value tool. Interviews showed an enthusiasm to push
such integration forward in future projects.
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C h a p t e r 5
CONCLUSION
5.1 Conclusion
The findings from the case study show that early SCs involvement in design
offers many advantages for clients, designers, and SCs. The research reveals
that leveraging SCs’ knowledge during design is the main drive behind adopting
the early integration process. SCs’ knowledge can help clients, designers, and
project managers to reap substantial benefits regarding projects’ cost,
schedule, and quality. It reduces the level of uncertainty associated with the
design. It also offers information that can help to improve site coordination and
reinforce the project management. Additionally, SCs may benefit from their
early involvement in investigating design alternatives, and in influencing the
design to meet the capabilities of their products. This can help them to eliminate
the competition and enhance their competitive positions.
Nevertheless, it has been observed that there are few disadvantages and
obstacles that may impede the integration process and influence its
effectiveness. The main problem addressed is the difference in objectives
between SCs and design team members. SCs still regard their early
involvement as a process to achieve private objectives rather than help to
deliver projects according to the common objectives. Aligning SCs’ objectives
according to the client desire is crucial to achieve the optimum benefit of the
integration process.
Additionally, the integration process places cultural challenges on both SCs
and designers. SCs need to collaborate early with designers to develop a single
design solution. This requires them to shift their role from one of contractor to
one of design consultant. SCs still face problems to adapt to work with the
designers. Changes in organizational culture should occur at the company and
Chapter Five Conclusion
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the individual levels. Training, allocation of appropriate resources can help to
push the process to success.
Moreover the contractual arrangements have been found problematic.
Particularly, two-stage contracts still need improvements to solicit knowledge
exchange between designers and SCs. The separation between the design
and the implementation phase may hamper the integration process to meet its
optimal aims. SCs are less willing to share their competitive knowledge with
designers when they are not confident about getting the implementation stage
contract. Additionally, they still have the fear of losing their competitive
knowledge for competitors during design. This may influence the extent and the
accuracy of their information.
Further, it has been found that vigorous communication is crucial for the
integration success. The research reveals that face-to-face communication is
the richest medium to exchange knowledge early on. ICTs still may not offer the
same advantages that can be offered by direct interactions. Although their
utilization is cheaper, they do not offer instant feedback and group discussion
between the design team members. In addition, although the usage of project
extranet in communication is growing, it still may need improvements to provide
a more congenial environment like that offered by face-to face interaction to
support the early communication between SCs and designers.
This research has also explored types of knowledge that SCs contribute to
design. They include knowledge of materials specifications, methods of
implementation, cost and time, technical suggestions, process capabilities,
product constraints, market information and maintenance and serviceability
information. Designers must be aware about the opportunity that SCs’
knowledge offers to improve their design. Current practices in the construction
industry should benefit from SCs experience and skills to improve projects’
efficiency.
Moreover, the research illustrates that SCs are increasingly involved in
projects’ design phase. Specifically their level of involvement has been raised
because of the increasing of their products’ complexity. Like suppliers in
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manufacturing, many SCs’ have become systems suppliers because of the
industry needs for finished products and prefabricated systems. However, the
challenge is to improve the early involvement process to enable SCs and
designers to collaborate effectively and align their incentives to meet the project
objectives. Top management support and building trust between project
participants may help to alleviate some problems and perhaps can induce SCs
to share more knowledge. Further, building long term relationship with clients,
designers and project managers may enhance the process efficiency and help
to overcome many obstacles and impediments.
Chapter Five Conclusion
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59
5.2 Implications for Further Research
Early SCs involvement in the design phase has not yet been widely
investigated. This study will hopefully add new ideas to the project
management body.
It is shown through out this study that the early SCs integration in design
has advantages and limitations. The process is still immature and does not
meet its optimum targets because of the lack of process understanding among
project participants and the limited incentives. Research into four main areas is
recommended:
Study the cultural differences between SCs and designers in order to
improve their relationships.
Aligning SCs’ desires with the overall project objectives.
Investigating the incentives needed to better leverage SCs’ knowledge
during design.
Improving the ICTs to provide more social atmosphere to facilitate the
early communication between SCs and designers.
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APPENDIX (A)
Interviews Guidelines
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Case Study Interview Guidelines for Modular
1. Can you give me brief information about the RBS project?
2. Can you describe briefly your company’s role in the RBS Project and your role in Modular?
3. Who was responsible for integrating MODULAR in the RBS design phase? Who approached Modular from the client side?
4. Can you describe how the integration process has been accomplished? Can you describe the nature of the contractual arrangement between MODULAR and RBS?
5. Do you think that RBS-MODULAR contractual arrangement is appropriate? If no, please give reasons.
6. When did MODULAR sign the contract? (After/Before the integration)
7. Did Modular help the Design consultants before signing the contract?
8. If yes, what were the incentives for MODULAR to get involved before signing a contract? Are the unpaid efforts rewarded?
9. What are MODULAR’s objectives from getting involved at early design stage?
10. Can you clarify who are the personnel involved in the integration process from both RBS and MODULAR sides?
11. Can you describe how the communications between the designers and MODULAR happen? Are the ICTs used in the communication?
12. Do you think that MODULAR has provided the consultants with valuable information / knowledge in the design phase? If yes, please give examples.
13. Specifically, what was the MODULAR’s responsibility in the RBS design?
14. What are the advantages and disadvantages of integrating MODULAR in the RBS design phase? Please give examples.
15. Do you think that the early involvement has helped MODULAR to reduce its product lead-time?
16. Do you think that MODULAR influenced the design? If yes, please give examples.
17. What do you think about the effects of the integration on the RBS project’s schedule, cost and Quality?
18. Do you think the cultural, thinking and context differences between the designer firm and MODULAR have caused problems?
19. What do you think the impact of such integration on the future projects? Do you think that it will enhance the competitive position of MODULAR in the market and affect the relationship with the designers and client for future business?
20. What do you think about integrating Modular in the early design phase and what are your recommendations for future projects?
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Case Study Interviews Guidelines for RBS Design Team
1. Describe briefly your company’s role in the RBS Project and your role?
2. What was your role in integrating MODULAR in the RBS design phase?
3. When have you been involved in the integration process?
4. Can you tell me what was the client’s role in the integration process?
5. Can you describe how the integration process has been accomplished and managed?
6. Do you think that RBS-MODULAR contractual arrangement is appropriate? If no, please give reasons.
7. Do you think that other procurement routes can fit such integration?
8. Modular has helped the Design consultants before signing the contract (stage 1), were there any incentives offered for MODULAR to get involved before signing a contract?
9. What are the client objectives from involving Modular at early design stage?
10. Can you clarify who are the personnel involved in the integration process from the RBS project team?
11. Can you evaluate the communications efficiency between the RBS team and MODULAR? What is your opinion about the ICTs used in the communication? (Specifically, the usage of the extranet)
12. Do you think that MODULAR has provided the consultants with valuable information / knowledge in the design phase? If yes, please give examples.
13. Specifically, what was the MODULAR’s responsibility in the RBS design? How much authority has been given in the design?
14. Do you think that MODULAR influenced the design? If yes, please give me examples.
15. What are the advantages and disadvantages of integrating MODULAR in the RBS design phase? Please give examples.
16. Do you think that the early involvement has helped RBS to reduce the project schedule and provide more control environment?
17. What do you think about the effects of the integration on the RBS overall cost and Quality?
18. Do you think the cultural, thinking and context differences between the RBS team and MODULAR have caused problems? What other obstacles, if any, faced the integration process?
19. What do you think the impact of such integration on the future projects? Do you think that it will affect the relationship with the designers and client for future business?
20. According to your role in the RBS project, what do you think about integrating Specialists contractors in general at the early design phase? What are your recommendations for future collaboration?
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APPENDIX (B)
Modular Design, Manufacture and Assembly Process Maps
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Modular Design Process
Initial on-site survey
Prepare Design Manual – Part 1
Disapproval Discuss design &
Get Client’s Approval
Prepare Design Manual – Part 2
Approval
Check changes and drawings with client’s consultants
Amendment
Needed
Yes
No
Prepare Joinery Drawings
Issue the final Manual
Issue the Cutting list (C.L.)
Send copy of C.L. to the Manufacturing floor
Note: Survey visits are carried
out more than one time during the
process to make sure that any changes on-site are
integrated in the manual
drawings.
Place copy in the
archive
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Modular Manufacture Process
Cutting of VIROC
Bonding & Sealing (VIROC)
CNC Operation-VIROC
Panels without Stoning
CNC Cutting Operation Bonded Panels
VIROC Panels For stoning
Cutting of stones (Beam Saw)
Stone Panels Bonding with VIROC Panels
ASSEMBLY SHOP (Assembly of Panels)
Raw Material VIROC
Raw Material Stones
C.L. (From Design)
Note: Quality is embedded in all process activities.
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Modular Assembly Process
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Finished panels from
manufacturing
Connector bars from suppliers
Installation of connector bars on the panels
Panels with
connector
Preassembly in Modular workshop
Disassembly
Packaging
Transport to construction site
Assembly on construction sites
Design Manual Replacement from
manufacturing
No
Defected panels
Defected panels
Note: the qualified finished panels are the products from manufacturing. QC represents Quality Control Process. Design Manual will verify the numbering of each panel in assembly.