Open Journal Systems

DECISION SUPPORT MODEL USING ANP TO ALIGN LEAGILE STRATEGIES TO OFF-SITE MANUFACTURING IN AUSTRALIA

Sherif Mostafa, Tariq Abdelhamid, Nicholas Chileshe, Jantanee Dumrak

Abstract


The Australian housing supply has not been adequate to meet the constantly growing demand. Four main factors driving this undersupply in Australian housing are: (1) house completion time; (2) cost of finished house; (3) customer preferences and (4) level of skilled labor. Offsite manufacturing (OSM) could become a key innovation for the future of Australian house building as it provides capacity in meeting the growing housing demand, green construction and lesser requirements for a labor force. OSM is a modern construction method in which house building components are produced in offsite factories and then transported to the construction site to be assembled. The supply responsiveness of OSM can be enhanced by employing lean and agile concepts. In this study, four Leagile strategies are suggested to facilitate house builders decision making based on different combinations of housing supply factors. This paper matches these four strategies with the four studied factors in Australian house building using the Analytical Network Process (ANP). The data employed for the ANP model was derived from the actual specifications of 258 houses built in five Australian states by five major house builders. The results from the ANP model show the suitability in applying each strategy under different degrees influenced by the factors tested.


Keywords


Off-site manufacturing; Australian housing supply; Leagile strategies; ANP

Full Text:

PDF

References


Abdelhamid, T. (2004). The self-destruction and renewal of lean construction theory: a prediction from Boyd’s Theory. Paper presented at the Proceedings of 12th Annual Conference of the International Group for Lean Construction, Copenhagen, Denmark.

ABS. (2012). 2012 Year Book Australia. Canberra, ACT: Australian Bureau of Statistics.

ABS. (2014). Average dwelling completion times. In A. B. o. Statistics (Ed.), Building Activity, Australia. Canberra: ABS.

Agarwal, A., Shankar, R., & Tiwari, M. K. (2006). Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach. European Journal of Operational Research, 173(1), 211-225. doi: 10.1016/j.ejor.2004.12.005

Agarwal, A., Shankar, R., & Tiwari, M. K. (2007). Modeling agility of supply chain. Industrial Marketing Management, 36(4), 443-457. doi: 10.1016/j.indmarman.2005.12.004

Arif, M., & Pannell, I. (2013). Delivering New Homes – The Offsite Way. Salford UK: Buildoffsite.

Armacost, R. L., Componation, P. J., Mullens, M. A., & Swart, W. W. (1994). An AHP framework for prioritizing customer requirements in QFD: an industrialized housing. IIE Transactions, 26(4), 72-79. doi: 10.1080/07408179408966620

Barlow, J., Childerhouse, P., Gann, D., Hong-Minh, S., Naim, M., & Ozaki, R. (2003). Choice and delivery in housebuilding: lessons from Japan for UK housebuilders. Building Research & Information, 31(2), 134-145. doi: 10.1080/09613210302003

Barlow, J., & Ozaki, R. (2005). Building mass customised housing through innovation in the production system: lessons from Japan. Environment and Planning A, 37(1), 9-20. doi: 10.1068/a3579

Bertelsen, S. (2002). Bridging the gap–towards a comprehensive understanding of lean construction. Paper presented at the Proceedings of the 10th Annual Conference of the IGLC, Gramado, Brazil.

Bijan, Y., Keramati, A., & Salehi, M. (2014). Comparison of user satisfaction of ecommerce websites by the Analytic Network Process. International Journal of the Analytic Hierarchy Process, 5(2), 223-251. doi: http://dx.doi.org/10.13033/ijahp.v5i2.180

Bildsten, L., Björnfot, A., & Sandberg, E. (2011). Value-driven purchasing of kitchen cabinets in industrialised housing. Journal of Financial Management of Property and Construction, 16(1), 73-83. doi: 10.1108/13664381111116106

Blismas, N. (2007). Off-site manufacture in Australia: Current state and future directions. Brisbane, QLD: Cooperative Research Centre for Construction Innovation.

Blismas, N., & Wakefield, R. (2009). Drivers, constraints and the future of offsite manufacture in Australia. Construction Innovation: Information, Process, Management, 9(1), 72-83. doi: 10.1108/14714170910931552

Chandler, D. (2014). A case for an Australian Construction Strategy, Commonwealth Government Productivity and Industry discussion paper (Discussion Paper). Retrieved 20 October 2014, from ConstructionEdge http://constructionedge.com.au/a-case-for-an-australian-construction-strategy/

Chang, A. S., & Lee, K. P. (2004). Nature of construction technology. Paper presented at the Proceedings of the 12th Annual Conference of the IGLC, Elsinore , Denmark.

Childerhouse, P., Hong-Minh, S. M., & Naim, M. M. (2000). House building supply chain strategies: selecting the right strategy to meet customer requirements. Paper presented at the Proceedings of the 8th Annual conference of the IGLC, Brighton, UK.

Christopher, M., & Towill, D. (2001). An integrated model for the design of agile supply chains. International Journal of Physical Distribution & Logistics Management, 31(4), 235-246. doi: 10.1108/09600030110394914

Christopher, M., & Towill, D. R. (2000). Supply chain migration from lean and functional to agile and customised. Supply Chain Management: An International Journal, 5(4), 206-213.

COAG. (2012). Housing Supply and Affordability Reform. Canberra ACT, Australia: Council of Australian Governements.

Dalton, T., Hurley, J., Gharaie, E., Wakefield, R., & Horne, R. (2013). Australian suburban house building: industry organisation, practices and constraints (A. H. a. U. R. Institute, Trans.). Melbourne, Australia: Australian Housing and Urban Research Institute.

Dalton, T., Wakefield, R., & Horne, R. (2011). Australian suburban house building: industry organisation, practices and constraints Australian Housing and Urban Research Institute Positioning Paper Series, 1-56.

Daly, G. (2009). Prefabricated housing Australia: skill deficiencies and workplace practice. Melbourne: International Specialised Skills Institute.

Daneshgari, P. (2010). Agile construction for the electrical contractor. Sudbury, MA: Jones & Bartlett Learning.

DEEWR. (2012). Skill Shortages in Construction Trades 2012 (E. a. W. R. Department of Education, Trans.). Canberra: Department of Education, Employment and Workplace Relations.

DeVor, R., Graves, R., & Mills, J. J. (1997). Agile manufacturing research: accomplishments and opportunities. IIE Transactions, 29(10), 813-823. doi: 10.1080/07408179708966404

Dowling, R. (2005). Residential building in Australia, 1993–2003. Urban Policy and Research, 23(4), 447-464.

Forbes, L. H., & Ahmed, S. M. (2011). Modern construction : lean project delivery and integrated practices. Boca Raton, FL: CRC Press.

Gann, D. M. (1996). Construction as a manufacturing process? Similarities and differences between industrialized housing and car production in Japan. Construction Management and Economics, 14(5), 437-450. doi: 10.1080/014461996373304

Gibb, A., & Isack, F. (2003). Re-engineering through pre-assembly: client expectations and drivers. Building Research & Information, 31(2), 146-160. doi: 10.1080/09613210302000

Goulding, J., Nadim, W., Petridis, P., & Alshawi, M. (2012). Construction industry offsite production: A virtual reality interactive training environment prototype. Advanced Engineering Informatics, 26(1), 103-116. doi: http://dx.doi.org/10.1016/j.aei.2011.09.004

Gunasekaran, A., Tirtiroglu, E., & Wolstencroft, V. (2002). An investigation into the application of agile manufacturing in an aerospace company. Technovation, 22(7), 405-415. doi: http://dx.doi.org/10.1016/S0166-4972(01)00039-6

Hampson, K. D., & Brandon, P. (2004). Construction 2020-A vision for Australia's property and construction industry. Brisbane, QLD: CRC Construction Innovation.

Hamzeh, F., Ballard, G., & Tommelein, I. (2012). Rethinking lookahead planning to optimize construction workflow. Lean Construction Journal, 15-34.

HIA. (2014). Housing 100 : Australia's Largest Homebuilders and Residential Developers 2013/2014. In H. E. Group (Ed.), Housing 100. Campbell ACT: Housing Industry Association.

Höök, M., & Stehn, L. (2008). Applicability of lean principles and practices in industrialized housing production. Construction Management and Economics, 26(10), 1091-1100. doi: 10.1080/01446190802422179

Johnsson, H., & Meiling, J. H. (2009). Defects in offsite construction: timber module prefabrication. Construction Management and Economics, 27(7), 667-681. doi: 10.1080/01446190903002797

Kenley, R. (2014). Productivity improvement in the construction process. Construction Management and Economics, 32(6), 489-494. doi: 10.1080/01446193.2014.930500

Khalfan, M. M. A., & Maqsood, T. (2014). Current atate of off-site manufacturing in Australian and Chinese residential construction. Journal of Construction Engineering, 2014, 1-5. doi: http://dx.doi.org/10.1155/2014/164863

Koskela, L. (1992a). Application of the new production philosophy to construction CIFE Technical Report (Stanford University), 72, 81.

Koskela, L. (1992b). Application of the new production philosophy to construction (D. o. C. E. Center for Integrated Facility Engineering, Trans.). Stanford University, CA.

Lee, S. (2003). Agile Report: The Agile Peformance Improvement Databse: A tool to improve construction performance. Bath, UK: School of Management, University of Bath.

Lessing, J. (2006). Industrialised house-building - concept and processes. (Licentiate Thesis), Lund, Sweden: Lund University.

Liu, J., & London, K. (2011). Analysing the relationship between new housing supply and residential construction costs with regional heterogeneities. Australasian Journal of Construction Economics and Building, 11(3), 58-67. doi: 10.5130/ajceb.v11i3.2174

Lu, N. (2009). The current use of offsite construction techniques in the United States construction Industry. Proceedings of the Construction Research Congress 2009, 946-955. doi: 10.1061/41020(339)96

Lu, N., & Liska, R. W. (2008). Designers' and general contractors' perceptions of offsite construction techniques in the United State construction industry. International Journal of Construction Education and Research, 4(3), 177-188. doi: 10.1080/15578770802494565

Manley, K., Mckell, S., & Rose, T. (2009). Innovative practices in the Australian built environment sector: An information resource for industry (C. R. C. f. C. Innovation, Trans.) Brisbane, QLD: Built Environment Industry Innovation Council.

Mason-Jones, R., Naylor, B., & Towill, D. R. (2000). Lean, agile or leagile? Matching your supply chain to the marketplace. International Journal of Production Research, 38(17), 4061-4070. doi: 10.1080/00207540050204920

Mason-Jones, R., & Towill, D. R. (1999). Total cycle time compression and the agile supply chain. International Journal of Production Economics, 62(1), 61-73. doi: http://dx.doi.org/10.1016/S0925-5273(98)00221-7

McGrath-Champ, S., & Rosewarne, S. (2009). Organizational change in Australian building and construction: rethinking a unilinear ‘leaning’discourse. Construction Management and Economics, 27(11), 1111-1128.

MHRA. (2003). Technology roadmap for manufactured housing (U. S. D. o. H. a. U. Development, Trans.). New York: Partenrship for Advanced Technology in Housing.

Mossman, A. (2009). Why isn’t the UK construction industry going lean with gusto? Lean Construction Journal, 5(1), 24-36.

Mostafa, S., Dumrak, J., & Soltan, H. (2013). A framework for lean manufacturing implementation. Production & Manufacturing Research, 1(1), 44-64. doi: 10.1080/21693277.2013.862159

Nadim, W., & Goulding, J. S. (2011). Offsite production: a model for building down barriers: A European construction industry perspective. Engineering, Construction and Architectural Management, 18(1), 82-101. doi: 10.1108/09699981111098702

Naim, M., & Barlow, J. (2003). An innovative supply chain strategy for customized housing. Construction Management and Economics, 21(6), 593-602. doi: 10.1080/0144619032000134129

Naim, M., Naylor, J., & Barlow, J. (1999). Developing lean and agile supply chains in the UK housebuilding industry. Paper presented at the Proceedings of the 7th Annual Conference of the IGLC, Berkeley.

Naylor, B. J., Naim, M. M., & Berry, D. (1999). Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain. International Journal of Production Economics, 62(1–2), 107-118. doi: 10.1016/s0925-5273(98)00223-0

NHSC. (2013). Housing supply and affordability issues 2012-13. Canberra: National Housing Supply Council.

Olhager, J. (2013). Evolution of operations planning and control: from production to supply chains. International Journal of Production Research, 1-8. doi: 10.1080/00207543.2012.761363

Ozdemir, M. S. (2005). The unknown in decision making: The case of a network. Paper presented at the The Proceedings of the 8th International Symposium on the Analytic Hierarchy Process: Multi-criteria Decision Making, Honolulu, Hawaii, USA.

Pan, W., & Goodier, C. (2012). House-building business models and off-site construction take-up. Journal of Architectural Engineering, 18(2), 84-93. doi: doi:10.1061/(ASCE)AE.1943-5568.0000058

Pasquire, C. (2012a). The 8th flow - common understanding. Paper presented at the Proceedings of the 20th Annual Conference of the International Group for Lean Construction, San Diego State University, USA.

Pasquire, C. (2012b). Positioning Lean within an exploration of engineering construction. Construction Management and Economics, 30(8), 673-685. doi: 10.1080/01446193.2012.689431

PATH. (2002). Technology roadmap: whole house and building process redesign, one year progress report. In Prepared for US Department of Housing and Urban Development (Ed.), Partenership for Advanced Technology in Housing. Washington DC, USA: Office of Policy Development and Research.

Purvis, L., Gosling, J., & Naim, M. M. (2014). The development of a lean, agile and leagile supply network taxonomy based on differing types of flexibility. International Journal of Production Economics, 151, 100-111. doi: http://dx.doi.org/10.1016/j.ijpe.2014.02.002

Saaty, T. L. (1980). The Analytic Hierarchy Process : planning, priority setting, resource allocation. London: McGraw-Hill International Book Co.

Saaty, T. L., & Shang, J. S. (2007). Group decision-making: Head-count versus intensity of preference. Socio-Economic Planning Sciences, 41(1), 22-37. doi: http://dx.doi.org/10.1016/j.seps.2005.10.001

Saaty, T. L., & Sodenkamp, M. (2008). Making decisions in hierarchic and network systems. International Journal of Applied Decision Sciences, 1(1), 24-79. doi: 10.1504/IJADS.2008.017952

Sarkis, J. (2003). Quantitative models for performance measurement systems—alternate considerations. International Journal of Production Economics, 86(1), 81-90. doi: http://dx.doi.org/10.1016/S0925-5273(03)00055-0

Sertyesilisik, B. (2014). Lean and agile construction project management: As a way of reducing environmental footprint of the construction industry. In H. Xu & X. Wang (Eds.), Optimization and Control Methods in Industrial Engineering and Construction (pp. 179-196). Netherlands:Springer.

Shah, R., Chandrasekaran, A., & Linderman, K. (2008). In pursuit of implementation patterns: the context of Lean and Six Sigma. International Journal of Production Research, 46(23), 6679-6699. doi: 10.1080/00207540802230504

Shah, R., & Ward, P. (2003). Lean manufacturing: context, practice bundles, and performance. Journal of Operations Management, 21(2), 129-149. doi: 10.1016/s0272-6963(02)00108-0

Sharifi, H., & Zhang, Z. (1999). A methodology for achieving agility in manufacturing organisations: An introduction. International Journal of Production Economics, 62(1), 7-22.

Sharp, J. M., Irani, Z., & Desai, S. (1999). Working towards agile manufacturing in the UK industry. International Journal of Production Economics, 62(1–2), 155-169. doi: http://dx.doi.org/10.1016/S0925-5273(98)00228-X

State Government of Victoria. (2014). Group self build, housing and community building. Housing & Community Building: Finance & Business Services. Retrieved 29/04/2014, 2014, from http://www.dhs.vic.gov.au/for-individuals/housing-and-accommodation/home-owner-support/group-self-build

Towill, D., & Christopher, M. (2002). The supply chain strategy conundrum: To be lean or sgile or to be lean snd sgile? International Journal of Logistics Research and Applications, 5(3), 299-309. doi: 10.1080/1367556021000026736

Vidalakis, C., Tookey, J. E., & Sommerville, J. (2013). Demand uncertainty in construction supply chains: a discrete event simulation study. Journal of the Operational Research Society, 64(8), 1194-1204. doi: doi.org/10.1057/jors.2012.156

Womack, J., & Jones, D. (2003). Lean thinking: banish waste and create wealth in your corporation. London: Free Press.

Yusuf, Y. Y., Sarhadi, M., & Gunasekaran, A. (1999). Agile manufacturing: The drivers, concepts and attributes. International Journal of Production Economics, 62(1–2), 33-43. doi: http://dx.doi.org/10.1016/S0925-5273(98)00219-9

Zhang, D., & Sharifi, H. (2007). Towards theory building in sgile manufacturing dtrategy-A taxonomical spproach. IEEE Transactions on Engineering Management, 54(2), 351-370. doi: 10.1109/TEM.2007.893989




DOI: http://dx.doi.org/10.13033/ijahp.v7i3.340