Can the offsite Industry better embrace and foster a culture of ideas and knowledge sharing through improved Supply Chain integration? A recent roundtable event hosted by VOLUMETRIC explored how.

When we utilise the knowledge and skills of others, we find opportunities to enhance the R&D process and maximise lean manufacturing opportunities and as often discussed – early supply chain engagement can bring new ideas, improved products and better solutions. Early integration and collaboration offer up a wealth of opportunities, tapping into the experience and skills available throughout the supply chain to create better synergy to deliver products more valuable than the sum of individual parts.

Early collaboration also leads to greater efficiency, improved productivity and cost savings. In a survey of over 100 organisations in multiple industries conducted by global consulting firm McKinsey, companies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers. Yet consensus amongst supply-chain experts is that these opportunities are not being used to their full advantage. So, what is stopping the industry from adopting a more co-operative R&D strategy – and how can we implement a more collaborative culture?

Challenges & opportunities

Trevor Richards, Operations Director at VOLUMETRIC thinks that when it comes to development, the answer lies in moving from individualism to a more universal approach to standardisation. “I think the problem – especially with modular – is that everybody is protective of their intellectual property (IP). Nothing is interoperable. Companies see each other as pure competitors and do not see the benefit of interoperability between systems. That is where I see a significant barrier to collaborative R&D.”

“It feels very individualistic. Nobody wants to come together and say this is the standard – that is a standard wall system that meets the industry criteria and is compliant,” adds Ian Quinton, Managing Director for RCM/Benx who would like to see better engagement when it comes to product testing, and better access to test facilities for product collaborators. “There are more and more manufacturers, and they are all doing testing individually rather than bringing it all together.”

One of the key benefits of early engagement and collaboration is the opportunity to prototype new products and work cohesively to explore product range options. Clients, developers and architects want the flexibility to create unique designs and structures. However, what is desirable and what is realistically achievable, whilst being compliant and meeting required standards, may not be the same. This is where getting people around the table, working together to design, test and iron out any complexities as soon as possible, can make all the difference. Adopting a culture of collaboration allows the supply chain to work out what is possible.

Simon Buckmaster, Technical and Sales Service Manager for Fermacell/ James Hardie explained how their approach helps to find opportunities and reduce risk, adopting a mindset of early engagement to pinpoint and solve potential production challenges. “Early engagement gets everyone around the table, talking and finding out what is needed,” says Simon. “What is the end goal and how can we maximise our products to meet those requirements? It also gets people thinking about potential obstructions and production delays. The problem is that it is easy to sit around a table with a piece of paper and sketch things out. But when you have a whole production line stopped and everyone screaming at you suddenly it becomes a more tense situation. Having these conversations at the start is going to flag any problems before they start gaining momentum and affecting the upward chain.”

Following a year of major changes to building regulations, and with compliance and safety becoming ever more prevalent in construction conversations, Ian Pearson, Project Sales Manager for Hansgrohe – a global leader in bathroom and kitchen component manufacturing – sees better collaboration as a way to improve not only standardisation but compliance too. “I think there needs to be more collaboration between the whole supply chain regarding compliance and conformity,” says Ian. “That’s going to help ensure everyone is meeting the quality standards required. We need to look at how compliance is policed and ensure everyone is on the same page about safety, standards and performance – creating a more cohesive way to get everyone to a place where any product that comes into your business meets those requirements right from the outset.”

Approach to customisation When it comes to production, sudden unanticipated changes to requirements or a lack of first-phase communication are often responsible for delayed delivery or manufacturing bottlenecks. Repetitive ‘back and forth’ between manufacturers, suppliers and clients means increased lead times and higher costs, particularly when products are being adapted to fit a particular project. Collaborative R&D accelerates the product development cycle. Early collaboration leads to customisation of products that work on every level, achieving maximum results from performance, design and delivery.

Martin Rowlands, Managing Director of Pipekit, has extensive experience in the pipe manufacturing sector and has seen great success working with supply partners and clients to improve their product offerings to meet specific sector needs. “Collaboration is a two-way street,” says Martin. “A prime example is the utility cupboards with the Heat Interface Units (HIU). We are working with another manufacturer with a different approach. We are looking at how they can better suit the modular sector because the HIU has a first-fix bracket with all the connections the M&E contractor puts in. Then the second fix comes along, sticks it on the wall and connects it to the rest of the utility cupboard. But if you can have a one-piece unit that just screws to the wall, you’re improving efficiency even further. It is getting the manufacturer to buy into the idea that we can make these changes.”

Paul Millington, Key Account Manager for Morland, explained how this type of collaboration around product development has worked for the fire door industry. “We carry standard product ranges. We have customers buying a lot of doorsets every week, but then we can take that product and change it slightly for a lower quantity but increase the margins, so we have a nice mix of high-volume low-margin products and vice versa. Everything we are talking about – standardisation, for example – we have done for years in the leisure industry. A prefinished product, cut to size and delivered to line with returnable stillages – it is a collaborative process end to end.”

Communication is key

Getting buy-in from the rest of the industry is key to effective Supply Chain Integration and frequent communication from the start is vital. One thing that all parties at the roundtable discussion agreed on was that the information and resources needed to foster an environment of collaboration already exist. The industry holds a wealth of experience and knowledge – but there needs to be more of an outward-looking approach to using that information. The challenge is not whether the resources exist but how to ensure people know where to find them. Jason Bennett is a National Business Development Manager for Zehnder Group, which provides indoor climate solutions for commercial and residential spaces. He has seen the benefits of improved communications and information sharing – particularly in helping clients find the balance between meeting regulations and retaining design flexibility. “We see it all the time,” says Jason. “There is difficulty in co-ordination between an architect and a consultant because they want a building to look unique, but you have restrictions because of compliance or requirements.”

“If we go back a decade, ventilation systems were almost an afterthought. Builds are tighter now, so indoor air quality is more of a priority. The ventilation system is at the core of the design. I was recently asked by a client if it was possible to use a cooling system off a ventilation system with a standard unit they currently use. The answer is no, so if we had not looked at that detail at the concept stage, the design of the utility cupboard would have been wrong. That initial conversation let us share our understanding and knowledge, so the client knows what is feasible and what isn’t. We used to come in at RIBA stage 4. Now we are seeing a difference in the market, we are coming in at RIBA stage 2 or 3.”

Information sharing helps to establish trust and well-balanced supplier/ manufacturer relationships. Also, when it comes to data and product information, a certain degree of transparency is something Andrew Fawcett, Materials Manager at VOLUMETRIC wants to encourage. “There needs to be commercial knowledge that is equitable. The problem is there needs to be a high level of trust for that. There is information that would be useful for us to know. If we look at one product – but you are moving 100 more of a similar product – are you informing us of that? Is there a parallel product that we should be adopting? It is also helpful to know – and this is a more delicate issue – what the feedback and quality issues from other customers are. What has got the highest feedback and what has got the lowest? Quality improvement is a two-way thing, but we don’t tend to focus on that. We need to get it all on the table in a collaborative way.”

Delivering a common goal

As the traditional construction industry faces a shortage of skilled workers, supply chain collaboration and engagement are also key to developing the future of the offsite industry and bringing more MMC into the mainstream.

Michael Rowell, Engineering Manager for Fusion, believes skills and knowledge sharing between the industry and educational facilities could help bridge gaps in awareness and understanding of offsite technology. “If you look at the universities, the architects and engineers spend three to five years learning traditional construction methods – steel, concrete, timber, etc. There is no focused element on MMC. The only way we will get that is through the Engineering Council or RIBA because they set the standards for qualifying degrees. If we could say there is a requirement that MMC should be taught, that is when you start educating people. Then you start changing the industry – not for now but for ten or twenty years in the future.”

It is clear that everyone working in the offsite industry share one common goal – creating market growth and increasing the uptake of offsite technology and manufacturing. Bringing together the skills and knowledge available to make this happen benefits all those working in the industry. Whether it is globally established organisations such as James Hardie/Fermacell and Hansgrohe – who can offer unparalleled market experience – or in specific products and niches such as Morland. Or even new businesses bringing innovation and fresh ideas, everyone has something to offer in achieving collective common objectives.

But high-level collaboration should mean more than sitting around a table and talking. There is a lot to learn from getting out there and visiting manufacturers, seeing how different processes work and taking lessons from what others – both in and outside the offsite industry – are doing.

Learning curve

Simon Buckmaster is keen to encourage in-person site visits to demonstrate more effective ways of working. “You can sometimes have situations where people are doing something and when you get down to the manufacturing or assembly facility and see how they are processing or assembling the products – that you realise the different ways you could adopt to improve your own systems and make things safer or more efficient for your business.”

“We need to make more effort to get out there and look at what people do and how they do it. We need to come and see how the product is produced, cut or whatever it ends up being, because that then enables us to ask better questions rather than making assumptions. Part of collaboration around the R&D is making the effort to have a look, not just at the design stage but for the guys doing the real nuts and bolts bits. It comes down to creating value through shared experience.”

Trevor Richards from host company VOLUMETRIC agrees with this, citing the importance of building the supplier/manufacturer relationship and improving retention. “What makes a supplier arrangement work is the service and the relationship,” says Trevor. “It is about building partnerships – and that means having those in-person interactions where possible. You want to reduce any potential changes because the risk you take when you change your supply chain is that you get worse customer service. When we have a problem, we need to know it will be responded to. Let’s have a conversation and see what we can do. This is where it all starts.”

RCM/Benx’s Managing Director, Ian Quinton, also agrees on having an honest conversation, saying: “What would be ideal is a forum for the offsite manufacturers to connect with developers and architects, for example, to show how offsite technology can be applied to projects. The information and knowledge are there. But it is about ensuring people use the right products and interfaces and understand how they work. I think expectations of what can be delivered and what is realistic are often different – those complexities slow delivery when not addressed at the first stages. It is all about changing the mindset and developing that culture.”

While there is a desire for improved collaboration from many within the industry, the offsite sector has work to do in developing a culture that sees this sort of R&D activity as ‘the norm’. However, as identified by those in attendance at the roundtable, the path is laden with opportunities that will lead to better products, stronger business relationships and a more cohesive industry. Perhaps it is time for a new approach and to ask, how can we better work together?

The idea of a dedicated Supply Chain Innovation Group or forum is something that VOLUMETRIC is keen to pursue. Plans are currently being put in place to engage with the sector through regular meetings and roundtable events as well as via dedicated online knowledge sharing spaces.

LESSONS & OUTCOMES
Expanding Knowledge – we need to foster a better understanding of offsite methods and technologies through information sharing with suppliers, designers, architects and students/trainees entering the industry.

Growing Relationships – building collaborative relationships with suppliers and manufacturers offers exciting prospects for product development, best practise and innovation.

Evolving Culture – the general mindset of the industry needs to evolve when it comes to sharing data, conducting testing collaboratively and finding solutions to obstacles.

Setting Expectations – expectations and limitations need to be identified and communicated earlier through collaborative R&D to improve delivery and negate delays to production.

VOLUMETRIC encourages anyone who is interested in hosting or attending a supply chain innovation event to get in touch to discuss opportunities. If you would like to learn more or would like to participate in a supply chain innovation forum, please contact VOLUMETRIC on: [email protected]

Many thanks to VOLUMETRIC for hosting the roundtable event and thanks to all participants for their time and contributions to the lively discussion.

For more information on VOLUMETRIC visit: www.volumetric.co.uk

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