Value Stream Mapping in the residential new home – small
builder segment
Andrew Redding: Chair Construction Systems Workstream
Background
The building process is complex and can involve many individuals and companies in
a single project. This complexity and the number of small firms in the residential
sector, in particular, are often identified as barriers to improving sector performance.
However, there has been little analysis or documentation of industry processes.
To know where and how to intervene to increase construction sector productivity we
need to understand the construction processes involved in the production of different
types of buildings at every stage of their life from their conception, client brief, design,
consenting and construction through to their use, maintenance and demolition. This
includes the design, manufacture and use of different building products
The aim of the Value Stream/Process Mapping Project is to identify areas where
productivity can be improved through a series of segmentation and value stream
mapping processes to:
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Identify the activities and processes in the construction process
Quantify the importance of each activity and process in providing value
(functionality and market value), or otherwise, to the end-user.
Identify processes which can be improved or eliminated.
Review and assess inter-relationships between supply chain partners.
Develop action plans with to achieve the Future State.
Progress to date
To date the Value Stream Mapping project has completed a preliminary phase to
identify areas for Value Stream Mapping. Ian Page at BRANZ was commissioned to
undertake an analysis of industry data to identify the high value segments of the
industry where there is potential for productivity improvement.
Based on the findings from the industry segmentation report the New House/low rise
– small builders segment was selected for Value Stream and Process mapping.
www.buildingvalue.co.nz
Two workshops facilitated by a Value Stream Mapping professional with a range of
industry practitioners representing designers, builders, sub-trades, regulators,
merchants and manufacturers have been held. A Value Stream Map was constructed
for the New House/low rise – small builders segment and from this four areas
identified for further investigation through Process Mapping: the council consent
process; the tender process; information flow and communication among all the
stakeholders; and the building and inspection processes.
At the second workshop process maps were constructed which are currently being
analysed. A final workshop to develop the future state and ideal state will be held in
late September.
Following the completion of the workshops a synthesis report will be produced which
will identify initiatives that will contribute to improving productivity in the building and
construction sector.
Publications
The Construction Industry Segmentation Report has been published as BRANZ
Study Report SR 266 [2012] and can be downloaded here:
Construction Industry Segmentation
Further Information
For further information on the Value Stream Mapping Project you can:
1. Check for updates on the Productivity Partnership website
www.buildingvalue.co.nz
2. Contact Value Stream Mapping team members:
Ruth Berry
Project Manager
[email protected]
Andrew Redding
Project Sponsor
www.buildingvalue.co.nz