OPTIMISATION AND PRODUCTIVITY WITHIN BYGGEFABRIKEN CASE: Enemærke & Petersen a/s
Assessing potential at Byggefabrikken reveals major optimisation possibilities, and saves a million kroner Enemærke & Pedersen have an ambition to be the industry’s most productive construction company, before we reach the year 2020. With 4IMPROVE Consulting Group’s assistance, this nationwide construction company wishes to challenge existing beliefs and implement industry disciplines in the construction sector. Enemærke & Pedersen has 40 years’ experience as a head and turnkey contractor, and is a market leader within the social housing renovation sector. In addition to this, the company has extensive experience in renovating schools, hospitals, day institutions, as well as cooperatives and housing associations. E&P employs ca. 700 employees, separated into four locations: Ringsted, Glostrup, Aarhus and Aalborg. CHALLENGES TO PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Similarly to the rest of the building and construction industry, E&P has also encountered challenges with productivity. In industrial companies, productivity has reached 50 %, whereas it is only at 30 % in construction companies. When E&P contacted 4IMPROVE Consulting Group, the project was therefore very much about how the construction industry could gain inspiration from the toolbox that industrial companies used, and thus increase productivity.
THE CHALLENGE: THE SOLUTION: THE RESULT:
The cooperation between E&P and 4IMPROVE started with an assessment of potential of E&P’s construction factory in Glostrup. Byggefabrikken is home to a semi-industrialised renovation concept, that produces ready-made building components, such as facades, bay windows, roof cassettes, etc. which limits on-site assembly operations. Byggefabrikken was chosen to be a pilot project, as pre-fabrication here is part of E&P’s production that is most similar to industrial companies. Production Support Manager, Jan Buur Frederiksen, explains: “Over the last many years, E&P has worked continuously on productivity and optimisation. 4IMPROVE could do something that we couldn’t do ourselves. They came with an industrial and practical approach to the construction industry, and a really good business case. The consultants walked around production and spoke to our builders. They were good at learning, and installing changes, so the factory could run itself.”
The building and construction industry has been challenged by a 30% stagnation in productivity. Historical analyses show that time used in this sector is comprised of: 1/3 productivity, 1/3 preparation, 1/3 waiting time. Assessment of potential, inspired by industrial companies, new roles and improved cooperation between professional groups. The collective savings potential of more than 20% is equivalent to an expected potential of 3.6 million kroner in 2019. Optimisation potential of 20+ projects with an annual impact of 2.6 million kroner. In the project period alone, 1 million kroner was realised. Increased productivity, efficiency, and job satisfaction among employees.
NEW FACTORY ROUTINES Assessment of potential took place physically in the factory and included dialogue with employees. Processes and the machines’ productivity were evaluated, and a decision was made to film Byggefabrikken’s large production machine over the course of an ordinary day. The film revealed that most of the time, the machine was sedentary. Together with employees, 4IMPROVE analysed the film and acknowledged that the machine’s downtime was largely because of inefficient division of roles between the operator and the truck driver. The operator had to collect materials from the warehouse himself, pack them, and then transport them to the machine, all whilst the machine was sedentary. By amending the order of roles, it is now the truck driver who collects the materials, while the operator works uninterrupted at the machine. The result is that Byggefabrikken has been able to maximise usage of the production machine, and therefore increase productivity.
MAJOR POTENTIAL FOR OPTIMISATION The pilot project facilitated a major rationalisation of processes, planning and production at Byggefabrikken. Assessment of potential also included in-depth analyses of factory production in its entirety, procurement, management, and customers. The result was the sale of surplus material, terminated leases, and the reorganisation of the daily job – e.g. by introducing daily briefings, where expectations are discussed, and the day’s tasks are efficiently coordinated. What emerged was an optimisation potential of 20+ projects, with an annual impact of 2.6 million kroner. During the project period alone, 1 million kroner was realised. Process Manager, Søren Christensen says: ”We have increased our productivity, saved over a million kroner through the project, and achieved a better cooperation between different departments at the factory. Now we are in the process of investigating how we can optimise operations on our building sites.”
4IMPROVE’s industrial and practical approach to the building industry gave us something tangible and new to work with. Everyone was heard and challenged. They were with us all the way through – held dialogues with our employees, and ensured that changes were firmly installed in the company.” Søren Christensen Process Manager at Enemærke & Petersen.
4IMPROVE meets people on eye-level, they speak builders’ language, and challenge the idea that ‘that’s how the building branch is’ in a really cool way. At the same time, they have an understanding of our business, of the industry, and the process of change. They are aware that they need to have the boys on the production floor on board!” Jan Buur Frederiksen, Production Support Manager at Enemærke & Petersen.
THE FUNDAMENTAL IDEA:
Significant optimisation potential and savings via an industrial-inspired assessment of competences, and by challenging existing beliefs connected to the building and construction industry.
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