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Transforming Construction?

8.0 Conclusion

One of the key objectives in adopting the Production Management approach, based on BIM or otherwise, is as far as possible in this specific area, to replace human intuition and guesswork with systematic data collection, calculation and aggregation. People are simply not very good at some tasks. By reducing dependence on them, these tasks can be carried out more accurately and more reliably and the people can be freed up to perform more valuable work. Our general argument is that production status information on the project should just emerge, as continuous feed-back, a pure stream of raw data from the workface; a natural by-product of the project's production processes.

Before EPOS, retailers knew startlingly little about the state of operations in their stores. Full stock takes were carried out typically only every six or twelve months, generally as part of the accounting reporting process. Response to changing circumstances like weather conditions or fashion trends was hopelessly sluggish. Profitability could be calculated only at the overall store level. Above all, stock level planning and pricing schemes depended entirely on the personal observation, hunches and guesstimates of individual floor and departmental managers.

Managing a large construction project today is like trying to manage a large supermarket without an EPOS system. Everything depends on the individual experience, the quality of judgement and intuition of people like estimators, planners, gangers, section managers and site managers. Estimates and plans are based on private "black books" and rules of thumb. Progress assessments and forecasts are based on similarly subjective methods and are prone to a variety of errors. The overall approach to goal setting and progress reporting tends to be unmethodical, unsystematic and ultimately unverifiable. From this perspective, the amazing thing about construction projects is not that so many of them fail. The really amazing thing is how many of them succeed as well as they do.

The imperative for the retailer is to manage stock levels as accurately as possible. By knowing absolutely accurately his stock levels, at this atomic level of detail, product by product, hour by hour, the retailer can forecast absolutely accurately the profitability of his store overall and product by product, at any point in time.

The imperative for the constructor is to manage production levels as accurately as possible. For him production is dealt with in terms of individual installed components: individual steel beams, concrete columns, pipe spools, door sets and so on. By knowing accurately his production levels, component by component, day by day, the constructor can control his operations and those of his supply chain with unprecedented accuracy. He can also forecast accurately the man-hours required to complete his project, thus the end date, as well as the associated cost at completion.

EPOS was not developed by IT companies or product manufacturers; it was created by a group of big retailers, in the mid-1970's. Their aim was exactly as we've described here for Production Management: to replace operations level human intuition and guesswork with facts and calculation.

They envisaged the EPOS system as being an information model of the store and its supply chain. In this model, precisely specified date entities are used to represent the things that exist and the actions that can be performed on them at the fundamental, operations level of the business. The checkout tills and bar code readers are the interface between the EPOS model and the real store. Model and store are fully integrated. Every time something happens in the store, the model is updated with a new piece of data. And by setting specific parameters, the model can be used to control events in the store, such as stock levels, sale price and suchlike. Crucially though, the EPOS model acts like a huge vacuum, sucking up thousands of bits of data every day as customers flow through the store and goods flow in and out, building the picture, providing the knowledge the company's managers need for analysis and informed decision making.

BIM models, Building Information Models, can be used in an exactly analogous way in construction, to model, not just the physical buildings, but also the processes of their construction. The value of BIM as a visualisation and simulation tool have been touched on earlier. The truly transformational effect of this technology will come from its use in Production Management and project control.

EPOS information now drives the entire retail industry: sales forecasting, stock control, supply chain management, quality control and most other operational functions. The result is an industry that has been transformed over the past thirty years: massively improved customer satisfaction, wider product ranges, higher quality products, cheaper; more profitable businesses, growing and developing, providing greatly improved career opportunities for more young people.

BIM-based Production Management will do very much the same for construction: predictable projects, satisfied clients, increased volumes of business, higher margins, sustainable profits, increased investment, all leading to a truly high technology, high value industry - a great industry to do business with and a great place in which to make a career.

 

Canary Wharf