Industrialization of Electrical Contracting · Industrialization of Electrical Contracting Supply...

Industrialization of Electrical Contracting

Supply Chain and Logistics Management

Final Report Presentation

Santa Clara University School of Engineering Department of Civil Engineering

Hisham Said, Ph.D.

Assistant Professor

Santa Clara University

Santa Clara, CA

[email protected]

ELECTRI Council Meeting

San Diego, CA, January 22, 2015

mailto:[email protected]

Background

Background Research Objectives

Data Collection

Best Practices

Raw Material

Electrical

Contractor

Distributer

/Vendor

Components

Manufacturer

Supply House

(Retail)Prefabrication

Electrical

Fabricator

In-house

Prefabrication

Electrical Contracting Supply Chain Industry

Economic

Factors

Electricians

Union Relations

General

Contractor

Architect /

Engineer

Project

Owner

Construction

Information

How to “industrialize” the Electrical Contracting Business?

Recipe = Prefabrication + Industrialized Supply Chain

Prefabrication is not a one solution that fits all!

Prefabrication Determinants

2 Future Research

Improvement Opportunities

Research Objectives and Methodology

Data Collection

Interviews - Site Visits

Case Studies – Questionnaire

– Economic Data

Industrialization Practices

and Opportunities

1) Best Practices

2) Opportunities for

Improvement

Analysis of Prefabrication

Determinants

1) Variables Processing and

Selection

2) Logistics Regression Model

Development/Validation

Objective (1)

Industrialization

Best Practices

Objective (3)

Identify

Industry-related

Determinants

Objective (2)

Identify

Firm-related

Determinants

Investigate the best practices and

determinants of electrical

contracting industrialization.

Prefabrication can be used

as a measureable indicator of

the industrialization level of

electrical construction firms.

3 Background Research Objectives

Data Collection

Best Practices


Future Research


4

Data Collection

1) Semi-Structured Interviews (phone and in-person)

o 7 electrical contractors

o 1 vendor

o 3 manufacturers

o 1 NECA Regional Director

2) Site Visits

o 2 prefabrication facilities

o 1 vendor distribution facility

3) Case Studies

o Vendor partnerships,

o Specification sheets of electrical assemblies/components

o Construction Projects


Data Collection

Best Practices


Future Research


5

Data Collection

4) Online Questionnaire

o 78 responses.

o 32 states

a) Geographic Distribution of

Respondents

<$5M(30%)

$5M –$10M(16%)

$10 M–$50M(22%)

$50M –$100M(14%)

$100M –$200M(12%)

>$200M(6%)

b) Work Volumes of

Respondents

c) Prefabrication volumes

of Respondents

N/A(46%)

< 5%(23%)

5% - 10%(18%)

10% -20%(8%)

20% -40%(2%)

> 40%(3%)


Data Collection

Best Practices


Future Research


6

Data Collection

4) Online Questionnaire

o 78 responses.

o 32 states

a) Geographic Distribution of

Respondents

Representative

Sample!


Data Collection

Best Practices


Future Research


7

Data Collection

5) Industry Metropolitan Economic Data

o Unemployment rate

o EC’s annual payroll

o Number of EC companies

o Average number of employees per EC

o Number of Electricians

o Average hourly wage of electricians

EC = Electrical Contractor


Data Collection

Best Practices


Future Research


8

Best Practices

Operational and Design

Requirements

1) Building Information Modeling (BIM)

2) Labeling and Packaging

3) Modularization & Standardization

4) Prefabrication Scope Identification

5) Integrated Project Delivery

6) Capacity Startup & Expansion

Vendor Role

1) Vendor Partnership

2) Material Management

3) Kitting and Packaging

Manufacturer Role

1) New Products Training

2) Customized Cataloged

Prefab Assemblies


Data Collection

Best Practices


Future Research


9

BP – BIM

EC Vendor Manuf


Data Collection

Best Practices


Future Research


20%

54% 55%63%

75%

0%

20%

40%

60%

80%

100%

Never Sometimes Frequent VeryFrequent

Mostprojects

% o

f re

po

nd

en

ts w

ith

B

IM

Frequency of Vendor's Early Involvement in Projects

39%

56%

80% 80%

0%

20%

40%

60%

80%

100%

0 1 2 3% o

f re

po

nd

en

ts w

ith

B

IM

Number of Prefab Assemblies from Manufacturers

(a)

(b)

0%

20%

40%

60%

80%

100%

% o

f re

po

nd

en

ts

Annual Volume of Work

BIM

Prefab

Breakdown of EC firms with BIM

capability

In-house

Engineering

(86%)

No In-house

Engineering

(14%)

EC Work Volume Requirement

for BIM and Prefab

(b)

(a)

Increased Supply Chain

Collaborations

Increased Prefabrication

Volumes

10

BP – Labeling/Packaging

EC Vendor Manuf


Data Collection

Best Practices


Future Research


Room-based

Packaging

Package Label

Getting the “LEGO” pieces together!

A lot of potential for automation!

11

BP – Modularization/Standardization

EC Vendor Manuf


Data Collection

Best Practices


Future Research


MC Slip-style

couplings

Snap-on-

stud

support for

MC and

BoxesDevice

Box

MC

Cable

Stud

Wall

Snap

MC-box

connector

Telescoping

Box

Mounting

Bracket

Box with

Adjustable

Depth Mud

Rings

12

BP – Prefab Scope Identification

EC Vendor Manuf


Data Collection

Best Practices


Future Research


Projects with more

Prefabrication

Flexibility

1) Offices (3.73)

2) Commercial (3.72)

3) Education (3.33)

4) Healthcare (3.2)

5) Residential (2.46)

13

BP – Integrated Project Delivery

EC Vendor Manuf


Data Collection

Best Practices


Future Research


Design-Bid-Build

(22%)

Design-Build(37%)

CM-at-Risk(1%)

No difference, all PDS's

are the same(40%)

Respondents’ Evaluation of the “Most

Prefabrication-Friendly Project

Delivery Systems”

(a)

5%

18%

0%

27%

50%

0%

10%

20%

30%

40%

50%

60%

Veryinflexible

Inflexible Noeffect

Flexible Veryflexible

% o

f R

esp

on

den

ts

Specs Writers Flexibility to Prefabrication(b)

Integrated Project Delivery Can Help,

but Not a Must!

Code & Specs flexibility to

prefabrication

14

BP – Capacity Startup & Expansion

EC Vendor Manuf


Data Collection

Best Practices


Future Research


Phase Strategies

Experimenting

1) Subcontracting Assemblies to External Electrical Fabricators 2) Outsourcing Preassembly Tasks to Vendors 3) Buying Cataloged Preassemblies from Manufacturers

Setup

1) Invest in a small prefabrication space that is in central location to the main office and project locations.

2) Invest in basic prefabrication tools and machines (Tables, Wire cutting/stripping machine, Wire spool rack, Hand Tools, Small Material stacking)

3) Increase the vendor’s involvement

Expansion

1) Invest in a large prefabrication space 2) Invest in advanced prefabrication machines and tools (Cable pulling

tables, Wire spooling machine, Conduit benders, Threading machine, Welding shop, Large storage systems)

3) Attain in-house BIM services 4) Implement Lean principles 5) Increase the level of supply chain collaborations with vendors and

manufacturers

15


EC Vendor Manuf


Data Collection

Best Practices


Future Research


Assembly WorkbenchesCourtesy of ERMCO E.

Small Storage BinsCourtesy of Sprig E.

Wire Spool RacksCourtesy of Delucchi E.

Hand ToolsCourtesy of ERMCO E.

Wire Cutting and

Stripping MachineCourtesy of ERMCO E.

16


EC Vendor Manuf


Data Collection

Best Practices


Future Research


Pipe/Conduit Bending MachineCourtesy of Delucchi E.

Pipe

Threading

MachineCourtesy of

Delucchi E.

Welding

ShopCourtesy of

ERMCO E.

Large Storage SystemsCourtesy of Sprig E.

150+ ft Worktable for

Data Cables PullingCourtesy of Sprig E.

Wire

Spooling

MachineCourtesy of

Sprig E.

17

BP – Vendor Partnership

EC Vendor Manuf


Data Collection

Best Practices


Future Research


31%

39%

54%

0%

10%

20%

30%

40%

50%

60%

Local (1state)

Regional(4 states)

National(10 states)

% o

f re

po

nd

en

ts w

ith

Ve

nd

or

Pa

rtn

ers

hip

Vendor Size(a)

0%

20%

40%

60%

80%

100%

% o

f re

po

nd

en

tsAnnual Volume of Work

Vendor Partnership Prefab

(b)

Partnership can happen with

either small OR big vendors

Vendor Partnership can

help to manage high

prefabrication volumes

18

BP – Material Management Agreements

EC Vendor Manuf


Data Collection

Best Practices


Future Research


Assign material logistics management

responsibilities to a distributor.

Agreement items:

1) Furnishing a warehouse to store the material close to the

congested jobsite.

2) Receiving and logging deliveries from all vendors.

3) Distributing material pallets to designated floors and

rooms from the warehouse.

4) Pulling material returns and maintaining the organization

of both the warehouse and workspace.

19

BP – Kitting and Packaging

EC Vendor Manuf


Data Collection

Best Practices


Future Research


Kitting preassemblies and area-based

packaging

Out of the questionnaire respondents:

o 45% use the area-based packaging service

o 14% use the preassemblies kitting service

20

BP – Training & Advocacy

EC Vendor Manuf


Data Collection

Best Practices


Future Research


21

BP – Customized Cataloged Prefab

EC Vendor Manuf


Data Collection

Best Practices


Future Research


20% of the questionnaire respondents procure one or more

prefabricated assemblies directly from manufacturers.

Online Configurators

22



Data Collection

Best Practices


Future Research


Union and Contractors Win-Win Industrialized Relations

EC’s positive attitude

toward prefabrication v.s.

IBEW Resistance of

Prefab & Outsourcing

23



Data Collection

Best Practices


Future Research


Increasing the “Lean-ness” of Prefab Operations

24



Data Collection

Best Practices


Future Research


Industry-Related Variables

1 Metropolitan Unemployment

2 Annual Payroll of Electrical

Contracting Firms

3 Number of Electrical Contracting

Firms

4 Average Number of Employees

per Firm

5 Electricians Employment

6 Electricians Average Hourly Wage

7 Union Acceptance of

Prefabrication

8 Union Acceptance of Outsourcing

Firm-Related Variables

1 Volume of Firms Annual Work

2 Business Territory Coverage

Distance

3 Engineering/Design Services

4 BIM capabilities

5 Level of Lean Operations

6 Vendor Partnership Existence

7 Strength of Vendor Relationship

8 Existence of Material Blanket Prices

9 Vendor Size

10 Vendor Early Involvement

11 Strength of Manufacturer Relation

12 Flexibility of Electrical Specifications

25



Data Collection

Best Practices


Future Research


Category Determinant Significance

Level

Industry-

related

Economic Growth (Unemployment Rate) Medium

Industry Competition (EC’s avg. size in the

metropolitan area)

Medium

Labor Cost Rate Medium

Union Acceptance to prefab outsourcing. Strong

Firm-

related

BIM (also used as firm-size indicator) Very Strong

Vendor Relation and Partnership Strong

Logistic Regression Model – can help is assessing

the feasibility of Prefabrication Operations for EC’s

26

Suggested Future Research Priorities


Data Collection

Best Practices


Future Research


IBEW-EC Prefab

Arrangements

Prefabrication

Feasibility Map

27

Thanks to the Taskforce!

Andrew Lawler

Lutron

Brad Weir

Kelso-Burnett

Buck Ross

Chapel Electric

Clinton Beall

B&D Industries

Don Campbell

NECA Northern CA

Greg Gossett

ERMCO, Inc.

James Feeney

Thomas & Betts

John Wright

Alterman

Mike Jurewicz

Sprig Electric

Steve Killius

Legrand

Tony Mann

E-J Electric

Industrialization of Electrical Contracting

Supply Chain and Logistics Management

Final Report Presentation

Santa Clara University School of Engineering Department of Civil Engineering

Hisham Said, Ph.D.

Assistant Professor

Santa Clara University

Santa Clara, CA

[email protected]

ELECTRI Council Meeting

San Diego, CA, January 22, 2015

mailto:[email protected]

Industrialization of Electrical Contracting · Industrialization of Electrical Contracting Supply...

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