Value stream analysis of a re-engineered construction supply chain

A case study is presented that documents the most common configuration of the supply chain for pipe supports used in power plants in the USA. This supply chain, like many others in construction, has numerous inefficiencies, many of which occur at the interfaces between processes, disciplines or organizations. Recognizing and understanding such inefficiencies, their causes and potential remedies provides a basis for process re-engineering. The study describes how today's industry practices are changing to yield shorter supply chain lead times. To model the mechanisms that drive those changes, data are presented from industry practice in the form of value stream maps that span organizational disciplines and company boundaries. Metrics commonly used in lean construction are introduced to gauge system performance. A current state map documents how work flows throughout the design, procurement and fabrication phases of pipe supports. Analysis of this current state map highlights value-added and non-value-added times and lead times. A future state map then illustrates process improvements that can be obtained by applying various supply chain management tactics. The methodology applied in this case study could be applied to other construction supply chains equally well.