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Barriers and Solutions Modern Methods of Construction

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1 Barriers and Solutions Modern Methods of Construction
Responding to Barker 33 Barriers and Solutions to the use of Modern Methods of Construction Ashley Lane, Chairman Barker 33 Cross-Industry Group

2 Barker 33 recommendation
“The HBF, in conjunction with NHBC, Construction Skills and other interested parties, should develop a strategy to address barriers to Modern Methods of Construction (MMC). This strategy should be developed to fit alongside existing initiatives, working closely with Government to identify further measures that can be taken. A range of approaches should be explored, in particular actions by industry, plus changes to policy / practice, as well as representations to Government on areas such as Building Regulations.”

3 In October 2004 a Cross-Industry Group
was established to address the remit The Group prepared 3 reports: 1st interim in November 2004 2nd interim in April 2005 Final Report, December 2005

4 The 1st report identified the following barriers:
Lack of understanding Lack of confidence/ process change Cost perception Lack of positive track record to date Lack of agreement on product and process standards Traditional process management Design bias Supply chain immaturity Lack of skills Turning MMC from a requirement to a 'want'

5 The 2nd report identified action in the following areas:
·        The need to improve understanding of MMC ·        Definition of MMC as wider than product innovation ·        Recognition that MMC was often a process- pull not product-push mechanism for innovation ·        The heightened process discipline required by MMC ·        The need to develop skills and professional training in the context of MMC ·        The enabling of MMC by matching the regulatory environment to the business environment ·        Improvements in the understanding of MMC costs and benefits

6 The Final report considers the business context and definition of MMC and outlines a number of actions to be taken to address the barriers to adoption of MMC

7 Business context The Barker 33 Group saw the business context as being well beyond a product-based system. MMC embraces: Greater business efficiency Enhanced design and quality Improved customer satisfaction Enhanced building performance Increased housing supply meeting the aspirations of the market as a whole (open market, social and affordable) Enhanced environmental performance with reduced impact

8 Definition of MMC Modern Methods of Construction are about better products and processes. They aim to improve business efficiency, quality, customer satisfaction, environmental performance, sustainability and the predictability of delivery timescales. Modern Methods of Construction are, therefore, more broadly based than a particular focus on product. They engage people to seek improvement, through better processes, in the delivery and performance of construction.

9 MMC factory

10 MMC – building homes people want

11 Work of the Barker 33 group and NAO
The Barker 33 Group has coordinated and integrated its work with that of the NAO which has been examining MMC and has recently published its report ‘Using Modern Methods of Construction to build homes more quickly and efficiently’.

12 The NAO study has Examined construction process and process efficiency for a typical small development by an RSL Established generic process maps for a number of systems (including brick and block, frame and volumetric products) Compared labour requirements for on- and off-site process Examined costs for a number of product-based MMC systems in comparison with brick and block Exposed the importance of process and regulation integration necessary to achieve maximum efficiency gains and cost reductions

13 NAO cost comparisons for MMC systems

14 NAO on-site labour comparisons with brick and block

15 Major Barker 33 Group and NAO findings
Recognise that MMC can be cost-competitive Understand that savings in process efficiency can put costs of MMC on a par with traditional construction Appreciate that process and product improvement are the core mechanisms for cost reduction

16 Uptake of MMC in housebuilding
150,000 dwellings built In 2004 17,000 built in MMC Approximately 12% of new build Similar proportion to Germany Approximately 150 UK product suppliers Stimulation from EP and HC Major players include Barratt, Redrow and Persimmon/Westbury More entering the market

17 Business case for MMC Cost: cost competitive Time: % faster Quality: 50% defect reduction Waste: 50% reduction in skips Additional measures could be - environmental performance, delivery certainty and customer satisfaction

18 MMC case study Westbury Partnerships/Persimmon Homes Building on the positive business benefits of MMC Largest UK residential developer Building sustainable communities with MMC 2,500 homes built in 2005 incorporating Space4 Target to increase this over next few years

19 Current position NAO report available (published November 2005) Barker 33 Executive Summary available on websites Barker 33 Executive summary available as printed brochure Barker 33 Final report in editorial process Barker 33 Final report to be available on websites only Legacy body being set up

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