Offsite / Modular Homes
Modular Housing – End to End Business Improvement
Modular Housing – End to End Business Improvement
With plans to become a major player in this emerging sector, the client requested our support to help improve quality, capacity and build times to meet growing demand.
Our client is a relative newcomer to the modular housing sector, supported by investors with significant growth plans. They have their own factory producing timber framed modular homes for both third party customers as well as their own housing developments.
Results
- Elimination of all point of use shortages to the manufacturing processes and 98% + on time in full delivery of materials across the value chain (including on site materials).
- Comprehensive site installation diagnostic provided a detailed improvement plan to drive a 50% reduction in site activity accelerating Practical Completion whilst also defining methods to manage future projects.
- Fully detailed analysis and a costed business strategy developed, including various sector growth scenarios linked to a number of manufacturing development opportunities.
- Further productivity improvements were identified and a road map developed to deliver them.
Observations
Develop Consulting were engaged to support the client across their business from supply chain to installation and practical completion (PC) with particular emphasis on increasing factory productivity and improving finished product quality (right first time).
Objectives
To ensure the necessary level of focus and drive the programme of support was divided into four key workstreams:
1. Manufacturing Process Improvement – delivery of a 200% increase in modules per shift, increasing RFT across all processes and ensuring effective resource management.
2. Supply Chain and Logistics Process Improvement – elimination of all point of use material shortages and improving on time in full deliveries across the whole value chain.
3. Site installation and Practical Completion Improvement – detailed diagnostic of all on site activities and completion of a target-based improvement plan.
4. Business and Manufacturing Strategy – development of the client’s two-to-five-year detailed business strategy with manufacturing options to support sector growth.
Actions
Manufacturing process improvement:
• Adopting a zone by zone approach every process across the manufacturing facility was timed and reviewed to produce a balanced process with a defined skills-based resource plan capable of producing 3 modules per shift.
Supply Chain and Logistics process improvement:
• Analysis of shortage data and process observation led to a revised shortage management process being implemented based on a three-day production plan look ahead supported by clear service level agreements and defined ownership.
• Introduction of BOM based picking lists and kitting by zone and by process in alignment to the production plan.
Site installation and Practical Completion Improvement:
• Detailed study and analysis of all activities carried out on site by management, trades and specialist service providers particularly focusing on activity durations, quality and site co-ordination.
• Collaborative approach with the creation of model sequence to reduce total cost whilst increasing quality of houses.
Business and Manufacturing strategy:
• Analysis if current manufacturing capability and review of potential options to deliver the five-year business strategy.
• Comprehensive range of scenarios identifying investment and expected product costs with route maps to deliver them.
