A value stream mapping approach to the identification of lean management opportunities
for off-site construction production: A case of reinforced concrete slabs
Zhe Chen*
The University of Hong Kong, Hong Kong SAR, China. E-mail: cz77@connect.hku.hk
Corresponding author.
Zhengting Guo
China State Construction Hailong Technology Company Limited, Shenzhen, China. E-mail:
guozt@cohl.com
Fan Xue
The University of Hong Kong, Hong Kong SAR, China. E-mail: xuef@hku.hk
This is the preprint version of the conference paper:
Chen, Z., Guo, Z., Xue, F. (2023). A value stream mapping approach to the identification
of lean management opportunities for off-site construction production: A case of
reinforced concrete slabs. Proceedings of the 23rd International Conference on
Construction Applications of Virtual Reality. Florence, Italy: University of Florence
Press, 392-401.
This file is shared for personal and academic use only, under the license CC
BY-NC 4.0 (Non-Commercial and with an Attributed citation when you use).

The final published version of this paper can be found at: [LINK_TO_DOI].

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ABSTRACT: Off-site construction (OSC), including prefabrication and Modular-integrated
Construction (MiC), is gaining popularity as a school of sustainable construction methods that
can improve productivity, quality, and waste reduction. However, OSC projects face challenges
related to technical integration, collaboration among stakeholders, and dynamic uncertainties.
As a result, high-quality standards throughout the manufacturing process of OSC products are
difficult to ensure, leading to costly rework, delays, and safety issues. This paper applies a value
stream mapping (VSM) approach based on lean principles to OSC production for identifying
lean management opportunities for off-site construction production. The case studied in this
paper is reinforced concrete slabs. First, we employed a combination of field investigations and
interviews to formalize the flow of materials and information for the case. Then, VSM processed
the flow for the current state map, which highlights twelve opportunities to prioritize for slab
production, e.g., the adoption of digital technology (VR, BIM) in information flows. The findings
in value-added activities improvement of the opportunities demonstrate the potential of lean
management in the slab production case. Furthermore, the VSM approach in this paper can
identify the ‘wastes’ in lean theory, which are the control points of OSC production, for
enhancing quality, efficiency, and resource utilization. The findings contribute to the existing
body of knowledge by providing empirical evidence of the VSM approach to the identification
of lean management opportunities for OSC production.
KEYWORDS: Off-site construction, Prefabricated products, Lean management, Value stream
mapping, Quality assurance, Construction industrialization, Lean construction
1. Introduction
Off-site construction (OSC) generally involves standardizing design, manufacturing

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components in the factories and assembling during construction (Hosseini et al., 2018). With
the upgrades of industrialization (Mitolo et al., 2021), examples of OSC are Bricks, 2D slabs,
3D volumetric, and Modular-integrated Construction (MiC). OSC is recognized as a promising
school of sustainable construction methods that integrates design, production, and construction
to save energy, eliminate environmental wastes and maximize the value of the whole life cycle
of construction products (Li et al., 2021). In the literature, OSC is confirmed capable of
improving labour productivity and product quality, enhancing energy conservation and
emission reduction, thus solving prominent problems such as strengthened resource constraints
and labour shortages. On the other hand, OSC also faces challenges, such as complex technical
integration, collaboration of multiple stakeholders, and dynamic uncertainties (Zhao et al.,
2023). Thus, OSC requires the coordination and integrated application of a wide range of
multidisciplinary and inter-organizational skills.
OSC production refers to manufacturing precast construction elements in the factory, which is
the most important stage for the quality assurance of products, as the construction site could be
responsible for limited rework and repairs (Wu et al., 2019). Unlike traditional manufacturing
factories, OSC production is a complex system involving different stakeholders and various
information interactions (Khalili & Chua, 2014). Therefore, the complexity also leads to quality
risks frequently occurring throughout the entire OSC products production processes, including
production planning, engineering design, mould production, components manufacturing,
quality inspection, storage, and loading for logistics (Lee et al., 2016). Furthermore, the
connections between the stages may amplify the risks from one stage to another, e.g.,
deformation occurs in the moulds at the beginning of the production will lead to defective
components, but components may meet inspection requirements in the following product stage,
and such mistakes can not be identified until the inspection of the finished products (Heravi &
Firoozi, 2016). Therefore, systematic quality management is vital to OSC production.
Current approaches adopted in OSC production management are limited (Lu et al., 2018). For
example, in the inspection process, the inspectors conducted manual spot inspection and made
subjective decisions stemming from their prior knowledge in identifying products’ flaws early
in the production process, which inevitably suffers from labour-intensive consumption and
subjectivity of opinions rather than precisely matching the substantial conditions (Xue et al.,
2018). Consequently, defects are not perceived until the later stage of logistics or even the onsite installation stage (Park et al., 2013). Defects that arise during the production stage are costly
for owners, contractors, and prospective clients because they are nearly impossible to chain
significantly during the assembly stage.
Lean management concepts have the potential to increase quality, efficiency, and resource
utilization for OSC production (Sacks et al., 2010). In lean principles, value is created by a
sequence of value-adding activities. A value stream is the sequence of activities by which a
company provides a product or service that delivers a specific product or service to a specific
customer (Koskela, 1993). Value Stream Mapping (VSM) is an approach for illustrating the
flow of materials and information in a lean manufacturing system (Ko & Kuo, 2015). It utilizes
the tools and techniques of lean manufacturing to help organizations identify where waste is
and, in turn, streamline the flow of production. The purpose of value stream mapping is to
identify and reduce waste in the production process (Rahani & Al-Ashraf, 2012). Waste in this
context is defined as any activity that does not provide added value to the end product and is
often used to illustrate the total amount of waste reduced in the production process. Managers,
engineers, process planners, suppliers, workers in the manufacturing industry, and customers
can all benefit from value stream mapping by identifying waste and determining where to start
looking for its main causes. In this way, value process mapping can also be a communication

tool in linking with stakeholders of the factories (Chen et al., 2008). In general, the adoption of
VSM based on lean concepts can enable the effective utilization of resources, e.g., in the
automotive industry, supply chain analysis, and manufacturing industries (Rahani & Al-Ashraf,
2012).
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This paper aims to apply the VSM approach based on the identification of lean management
opportunities in OSC production. The objectives of the paper are: 1) To map the OSC production
process; 2) To apply VSM to the map for locating the ‘wastes’ in the existing process; 3) To
identify corresponding management opportunities for OSC production.
2. Lean principles and value stream mapping

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Lean manufacturing principles have been used for a long time in the manufacturing sector to
boost output, productivity, remove waste, and deliver value (Sacks et al., 2020). The term "lean
principle" describes the ongoing process of raising the value of a product by removing waste
without sacrificing output, productivity, or quality (Koskela, 1993). Reducing non-value-added
activities and achieving value-added delivery in the construction domains are the major areas
of concentration for OSC. To address resource difficulties, lean principles' practices pledge to
offer solutions that are lasting. Once the lean techniques were applied to the project scenarios,
it became clear that significant amounts of materials were saved.
VSM is the whole of the actions—both value-added and non-value-added—currently required
to move a product through the primary flows that are fundamental to every product. It is the
production flow, from the raw material to the end customer, as well as the design flow, from
conception to realization (Grewal, 2008). Firstly, it is a tool to identify waste and problems. It
reviews operations and processes from a macro perspective, from the input-output process, and
allows managers to easily identify sources of waste (excess inventory, heavy work, time
wastage, handling, inspection, etc.), thus providing a scientific basis for continuous, systematic
improvement. Secondly, it provides a common language. Value streams can be used as a
common language for process and process improvement, making it easy to communicate
between different departments. It is a method of determining and differentiating priorities for
improvement, avoiding "picking the easy ones" for improvement and maximizing the return on
investment. The VSM is the basis for the preparation of improvement plans and their
implementation.
The integration of lean principles and OSC has been beneficial in optimizing its production
processes and has recognized great potential in effectively tackling resource waste and
unsatisfactory quality. As a result, numerous researchers have used VSM in conjunction with
lean concepts to increase productivity and efficiency in the OSC manufacturing process as well
as other areas. According to Wu and Pheng (2011), value stream mapping of precast
manufacturing is essential to achieving sustainability goals. In the case of Yu et al. (2009), by
applying the value streaming on a consistent work/product flow rather than on individual tasks,
the delay brought on by a conflict between the predetermined schedule and the actual schedule
of the complicated process of building a house can be decreased. To identify waste during the
construction of concrete slabs in residential constructions, Fontanini et al. (2013) employed
value spectrum mapping with lean concepts, increasing efficiency and effectiveness. However,
lean principles have their roots in the manufacturing sector, where they have a mature
theoretical and research base (Grewal, 2008). There is a lack of an organized framework that
can be used to promote the implementation of lean manufacturing principles in the production
of OSC products.
In summary, VSM indicates the key operating procedures that adds value to the targeted product.

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Instead of depending solely on the currently established conventional working hours, the use of
VSM is combined with field study, information gathering, and interviews, capturing the flow
of material and information. Cycle times, line change times, operator counts, size of batches,
and quantities of semi-finished products in a process are a few of the forms of data that are
capable of being exploited to analyse the lead time and added value time of the entire process.
So, in addition to the VSM approach, both field research and interviews are employed in this
paper.
3. Research methods

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3.1

The case selected in this paper is the reinforced concrete (RC) slab in the prefabricated
construction. The selection was based on the product family matrix defined in the VSM
approach (Fontanini et al., 2013). Usually, RC slab production accounts for >80% in both
prefabricated construction and RC MiC (Loss et al., 2016), which fulfil the requirements of the
product family matrix. The case factory is in Shenzhen, which has major products including
various types of precast elements such as facades, partition walls, floor slabs, staircases,
columns, integrated kitchens and washrooms. The involved projects include residential,
commercial buildings, roads, and tunnels.
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Case selection

Production process mapping

The scope of activities includes added-value activities at each level, from the raw materials to
the finished products, which includes conceptual design, product design, and process designs
(Sacks et al., 2020). In OSC production, it is the in-factory value stream, i.e., the manufacturing
stream from design to ready-to-transport stage.
In the site investigation, observations were made regarding the plant layout, the machinery used,
the sequence of activities and the time taken for each activity by visiting the site and also
interacting with the staff working there. The typical activities are (A) mould assembly and
preparation, (B) fixing of rebars, (C) concreting and curing, (D) de-moulding and (E)
transferring for storage.
Mould assembly and preparation. Casting begins with the assembling of the mould. The
front-work used to pour and cast concrete is called a mould. Using overhead cranes, the mould
plates are removed from the inventory area and set down on the fixed table. Using bolt and weld
connections, mould assembly and preparation entails assembling the mould plates. Based on
the shop drawings that the design team produced, the assembly is carried out. The timeline of
the activities taking place at the mould assembly is shown in Fig.1.

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Fixing of rebars. The rebars are then fixed into the mould as the following step. Cutting,
bending, and forming the reinforced cage in accordance with shop drawings are all steps in the
fabrication of the rebar cage. A separate reinforcing cage is created, and then it is added to the
mould. The Fig. 2 is the order of activities that take place as the rebar cage is transferred to the
mould.

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Concreting and curing. Concreting is the following step. Before the concreting process begins,
the raw materials are fed into the mixer. Both the mixing and transporting of concrete are
automated and simple to use. The system of the flying bucket is employed. The Fig. 3 is a listing
of activities that take place during concreting and curing.
Demoulding and transferring to storage yard. Demoulding is followed by moving the precast

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concrete component with a crane to the storage location. At the storage location, curing is
carried out using a sprinkler system that operates for three days. The storage location keeps the
finished components for further transportation. Before delivering the components to the
construction site for assembly, it is important to (i) inspect the physical state of the final product,
(ii) verify the important parameters, (iii) apply the proper identification markings to the
elements that indicate position, individual category, weight, size, and placement in accordance
with the shop drawing, and (iv) check whether the components have reached 75% of their design
strength in concrete.

Fig. 1: Mould assembly and preparation of a prefabricated RC slab.

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Fig. 2: Fixing of rebars of a prefabricated RC slab.

Fig. 3: Concreting and curing of a prefabricated RC slab.
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Non-value-added activities located using VSM

This step aims to apply VSM to locate the non-value-added activities. Non-value-added
activities, referred to as waste, are activities that do not directly contribute to the product's value
or the customer's perception of value. These activities consume resources (time, materials,
labour) but do not enhance the product or service in any meaningful way. As a result, by
identifying the non-value-added activities and location of waste, the potential improvement
could be a promising action. The categories and identification of non-value-added activities are
listed below (table 1).
Categories of nonvalue-added activities

Identification

Transportation

Unnecessary movement or transportation of materials or products
between different process steps, leading to delays, damage, and
increased lead times.

Inventory

Excess inventory or work in progress that is waiting to be
processed, increasing capital and space without providing
immediate value.

Waiting

Idle time for products, materials, or employees waiting for the
next step in the process, reducing efficiency

Over-production

Producing more than what is currently needed, which leads to
excess inventory and waste.

Over-processing

Performing more work than necessary, such as using highprecision processes for tasks that don't require it.

Defects

Activities required to fix mistakes, rework, or correct defects,
increasing costs and schedule delays.

Table 1: Categories and identification of non-value-added activities.
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Identification of corresponding management opportunities

The goal of this step is to adopt VSM analysis to identify opportunities for improvement. The
identifying process is based on two basic processes: the information flow and the material flow.
The information flow is the process that starts when the marketing department receives an order

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or has already forecasted the customer's needs and makes it into a purchasing plan and a
production plan. The material flow refers to the physical process, i.e., the process that starts
with the supply of raw materials into the warehouse from the supplier, followed by the outbound
manufacturing, the finished products into the warehouse, until the product reaches the customer.
In addition, the material flow includes the inspection and storage of products. Furthermore,
there are eight waste principles on which judgement is based, including waste of repair, waste
of over-processing, waste of movement, waste of handling, waste of inventory, waste of making
too many/too early actions, waste of waiting and waste of management. Therefore, in the
analysis of this paper, any part of a product that exceeds the minimum amount of resources
necessary to add value to the product is considered waste – a waste is not only an activity by
definition that does not add value but also a process that overuses resources.
4. Results

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Fig. 4 shows the results of process mapping, the adoption of the VSM analysis for locating
wastes in the current process map, and the current state map with information flow, material
flow and lead time ladder. The information flow depicts the communication between the
management team, the production team, the supplier, and the client. The material flow displays
the movement of materials through different steps from supplier to finished product. Cycle time
denotes the duration of each step, whereas lead time indicates the length of time it takes to
produce precast components from an order to their completion. While cycle time solely includes
time for value-added activities, lead time contains time for both value-added and non-valueadded activities. The sequence of activities is named from A to E. Evidences of the current waste
locating. 1) Waiting. A curing period of 12 hours is required when employing the water pond
method, thereby extending the waiting duration for subsequent procedures. 2) Defects. Damage
to mold plates occurred when the welded connection was disrupted during the demolding
process. 3) Overprocessing. Remediation of damaged finished components was carried out
through epoxy injection, thereby elongating the lead time. 4) Motion. The Reinforcement cage
production area is situated 200 meters away from the molding table, resulting in an increased
travel time for the crane during the transfer to the table platform. 5) Transport. The storage area
for mold assembly parts is situated at a distance of 400 meters, leading to an extended travel
time for the EOT crane during the transfer to the table platform.

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Fig. 4: VSM of the RC slab production. (Note: Process A- Mould assembly and Preparation,
Process B- Fixing of Rebars, Process C- Concreting and curing, Process D- De-moulding and
Process E- Transfer to storage)

Fig. 5: 12 opportunities for potential improvement
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Twelve opportunities are highlighted, as shown in Fig. 5, in information flows and material
flows based on the VSM of the RC slab production. In the information flows, eight opportunities
are concluded. Opportunity 1: real-time progress tracking, such as the adoption of Virtual
Reality (VR) (Rahimian & Ibrahim, 2011) and Building Information Modeling (BIM) (Xue et
al., 2021), enables the off-site production team to monitor every step of the production process
as it happens. This visibility facilitates quick identification of bottlenecks, inefficiencies, or
delays. With the assistance of a real-time view of progress, the stakeholders can take proactive
measures to optimize workflow, allocate resources more effectively, and prevent unnecessary
downtime. Opportunity 2: implementing a standardized feedback loop creates a systematic
process for collecting insights and suggestions from various stakeholders involved in the factory.
The information loop contributes to continuous improvement, as the feedback is used to identify
areas for refinement and innovation. By incorporating valuable input from workers, the
production process becomes more streamlined, and waste is reduced through collaborative
problem-solving and optimized processes. Opportunity 3: a resilient daily scheduling approach
acknowledges the dynamic nature of off-site construction and prepares for potential disruptions.
By building flexibility into the schedule, the stakeholders can better adapt to unexpected
changes without causing significant interruptions. Opportunity 4: timely quality assurance data
uploads play a crucial role in maintaining high-quality production standards. By promptly
uploading quality assurance data, any deviations or defects are identified early in the process,
allowing for timely corrective actions. This reduces rework, minimizes waste associated with
defects, and ensures that the final product meets or exceeds quality expectations. Opportunity
5: adopting a just-in-time task delivery approach optimizes the timing of task completion to
match actual production needs, preventing the accumulation of excess inventory or work in
progress. Opportunity 6: emphasizing the reduction of learning curves through proper training
and skill development enhances the expertise and efficiency of the production workforce.
Skilled workers are less likely to make errors or require additional time to complete tasks.
Opportunity 7: establishing clear and well-documented standard operating procedures (SOPs)
provides a structured framework for the entire off-site production team to follow. These SOPs
guide consistent and standardized practices, reducing variations that can lead to errors or
inefficiencies. Clarity in procedures minimizes waste associated with defects,
misunderstandings, and unnecessary deviations from the optimal workflow. Opportunity 8:
access to accurate and timely information forms the foundation of effective decision-making in
off-site production execution. The reliable data leads to quicker and more confident decisions,
aligning with lean principles by reducing delays and uncertainties that can lead to waste.
Four opportunities are summarized in the material flows. Opportunity 9: effective coordination
between the production scheduler, materials supply, and inventory management is vital for lean
management in off-site construction. By synchronizing production schedules with the
availability of materials and maintaining an optimized inventory level, the production process
could embrace increased efficiency. Opportunity 10: optimizing the layout of the factory is a
strategic improvement opportunity that can significantly enhance lean management. By
arranging workstations, storage areas, and production lines logically and efficiently, material
flow is streamlined. This optimization reduces unnecessary movement, transportation, and
waiting times, leading to improved overall efficiency and resource utilization. A well-organized
layout also supports just-in-time delivery and minimizes the chances of defects or errors.
Opportunity 11: increasing the visibility of waiting times is crucial for waste reduction and
process improvement. By close monitoring and making waiting times transparent to all
stakeholders, bottlenecks and delays are quickly identified. This visibility prompts immediate

action to address issues, prevent idle time, and maintain a consistent production flow.
Opportunity 12: the practice of reworking, reusing, and recycling defective items is a
sustainable and lean-approach. Efforts are made to salvage and repurpose them where possible,
leading production management to the more resource-efficient and environmentally responsible.
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5. Discussion and conclusion
The OSC production is that the dynamic nature of the production requires a rapid response.
However, OSC production, unlike a generic manufacturing facility, has long order lead times,
relies on several tiers of subcontractors and casual labours, and requires close coordination. This
paper maps OSC production processes in the factory and applies the VSM approach from lean
manufacturing to lean OSC management opportunities. The findings from the RC slab case
demonstrate the identification of the existing wastes, non-value-adding activities, and potential
lean management opportunities. Examples of the opportunities include eight opportunities in
information flows and 4 opportunities in material flows.
The contribution of this paper mainly lies in advancing lean management practices in the field
of off-site construction. By offering practical, and customized solutions, it is promising to drive
positive changes, optimize production processes, and foster continuous improvement within the
OSC production.
There are several limitations in this paper as well. First, this paper involves one typical case of
RC slab without detailed analysis on the generalizability to other products. Further, VSM is a
dynamic tool, and the process should be revisited periodically to ensure ongoing improvements.
Future research could focus on how to apply a more scientific and rational approach to further
improve the quality and management efficiency of OSC products in the identified management
phases.
Acknowledgement

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The work presented in this paper was supported by the Shenzhen Science, Technology and
Innovation Commission (SZSTI) (No. SGDX20201103093600002).
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