The construction techniques used today in HUD-code and modular housing have changed very little in the past 50 years. This report discusses ways for factory home-building plants to improve efficiency, increase capacity without additional plant or equipment, and reduce costs by using "lean production" techniques. These techniques have helped to catapult production efficiencies in other industrial sectors, notably automobiles.

The first section presents findings from a study of 141 plants about plant performance. Using key benchmarking measurements, such as average absenteeism, use of plant capacity and average labor turnover, the study concludes that the industry has "ample room for improvement" in its quality and performance.

The second section, a case study of the Capsys Corporation modular housing plant, identifies specific opportunities to improve the efficiency and productivity of product design and manufacturing operations. Capsys managers and a team of engineers found that little capital investment but significant cultural and operational change among the management could significantly improve production labor efficiency, increase capacity, and reduce costs.

[IMAGE: Exterior gypsum board sheets were staged two stations upstream from their point of use on the line.]

To replenish their cart, operators had to walk to this staging area. If gypsum board were staged closer to the point of use, carts could be eliminated, thus eliminating double handling.

Recommendation

Costs

1. Expedite electrical process

Low

2. Spread line activity by moving work upstream

Low-medium

3. Rationalize material staging and replenishment

Low

4. Purchase right-sized materials

Low-medium

5. Use the right tool for the job

Low

6. Create sub-assembly cells

Low-medium

7. Use positioning guides and jigs

Low-medium

8. Reduce welding

Medium

9. Re-engineer roof slope

Medium

10. Order the workplace

Medium

For an explanation of this table, see page 35.