My students use ideas from my class to develop a business model for "print a house." just as complex parts can be fabricated using 3D printers, many aspects of a home came be constructed using a large 3D printing machine that dispenses concrete any other materials. These slides describe a business model for thus a technology, focusing on the value proposition (faster construction), customer selection (largely Chinese residential), and method of value capture.
1. Print-A-House, Inc.
Final Presentation for MT4002
Technology Management Strategy
6th November 2012
By:
Vincent Jayalie (U094718J)
Lee Jin Yuan (U094655L)
Vincent (U096043R)
Clovis Chew Xuan Hao (A0067193Y)
Beatrix Tan (U094727U)
Print Our House. Print Our Future.
2. Presentation Content
Introduction
History and Prospect of Contour Crafting
Contour Crafting – “Additive Manufacturing” Technology in Construction
Milestones of Contour Crafting Technology
Corporate Profile: Print-A-House, Inc.
Corporate Vision, Mission and Strategic Positioning
Value Proposition: How is it applicable to our target market?
Value Capture
Scope of Activities
Strategic Control of Technology
Impact Analysis
Conclusion: How Print-A-House can influence the future of the construction
industry
Q &A
Print Our House. Print Our Future.
4. Conventional Construction
Traditional brick-laying methods
Pre-fabrication processes : Parts/Modules manufactured off-
site, then assembled together on the construction site
Labor-intensive with high degree of repetition
Print Our House. Print Our Future.
5. Imagine the possibility of…
Building a house using a printer?
Click Here!
Print Our House. Print Our Future.
6. Made Possible With
Contour Crafting Technology
Print Our House. Print Our Future.
7. Background of Contour Crafting
Contour Crafting - 3D printing technology in Construction
Invented in 2006 By Dr. Beshrokh Khoshnevis
Developed a Successful Concrete laying Prototype
Prototype able to “Print” 6 Foot Concrete Walls
Received Funding from Caterpillar Inc. In 2008
Supported By NASA
Dr Beshrokh Khoshnevis
Print Our House. Print Our Future.
8. Common Misconceptions
Contour Crafting printer can only be used once at one
particular location (not portable).
It can be disassembled and reused in other locations.
Contour Crafting is an all-in machine, covering all aspects from
landscaping, foundation laying, all the way to construction
and finishing processes.
It specializes in construction and finishing
Contour Crafting is cheaper due to the economies of scale in
mass producing houses.
Contour Crafting is cheaper due to the cost-savings reaped for
minimal manual labor and high degree of process automation.
Print Our House. Print Our Future.
9. Contour Crafting
Uses the Idea from one form of 3D Printing Technology
“Additive Manufacturing”
Building layer by layer till 3D Model is Complete
Able to do Automated Plumbing, Electrical networking.
Raw Materials
Eg. Concrete Prefabricated Parts Additional Finishes
Input Design
CAD Design Contour “Prints” the House A “Newly”
Crafting Using the Design Constructed
Of Building Machine input House
Setting Up of Area
Print Our House. Print Our Future.
10. Lets See How It Works!
Print Our House. Print Our Future.
11. Current Milestones of Contour Crafting
Technology
Current Technology is still in its Infancy stages
What Contour Crafting Technology has achieved
Able to Build a 6 Feet Tall Custom Made Concrete Wall
Design of Contour Crafter Machine Completed
Amid Testing and Commercialization
Building a Complete House (In the Works)
Some Limitations
Height Limit: 1-3 Stories Buildings
Require Tow Vehicle
Requires Area for Movable, Retractable Rails
Cannot Print all Materials (eg Glasses)
Print Our House. Print Our Future.
12. Imagine if We are the Ones Commercializing
this Technology?
PRINT-A-HOUSE Inc.
Our Corporate Profile
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13. Print A House Company Profile
Vision: “Print Our House, Print Our Future”
Mission:
“We aspire to print safe, affordable housing for the future.”
Strategic Positioning:
To be the market leader in the Chinese residential construction
industry in 2020.
Website: www.PrintAHouse.spreadthelovesg.com
Print Our House. Print Our Future.
14. PRINT-A-HOUSE, INC.
Value Propositions
“8 Key Aspects”
Speed Work Safety Labour Monetary
Cost
Strength &
Environment Flexibility Accessibility
Safety
Print Our House. Print Our Future.
15. Speed of Construction
* Assuming 2500 square foot house:
Conventional Conventional Conventional Contour
Crafting
Type Stick-Built Modular / Log Homes Printing
Prefab
Time Needed 6 Months 8-10 weeks 7 Months Projected
20 hours
Print Our House. Print Our Future.
16. Speed of Construction
Automate Repetitive Manual Labor
Brick Laying
Cementing
Laying of Support Structures (Steel Rods, etc)
Logistics
Less Materials and Machines to be Transported
Streamlined On-site Processes
24 hour Continuous Operation
Print Our House. Print Our Future.
21. Work Safety during Construction
Contour Crafting
Less Injuries in Construction and Transportation-Related
Activities
Less Worker Skin Contact with Hazardous Substances
Less exposure to Airborne Substances such as Dust and
Chemicals
Less Noise Exposure
Easier to Establish Procedures for Hazard and Failure Analysis
during Construction
Print Our House. Print Our Future.
22. Labor (Manpower)
Type Conventional Contour Crafting
Type of • Labor • Mostly Machinery
Resources Used • Construction industry in UK • Printer (Movable
employs 3 million people Gantry)
• >60% are low-skilled laborers • Concrete Mixer
• Excavator
• Machineries • Bulldozer
• Concrete Mixer • Caterpillar
• Excavator
• Bulldozer
• Crane
• Caterpillar
Print Our House. Print Our Future.
23. Monetary Cost
Portion of Segment Conventional Contour Crafting
Cost Responsible
20-25% Financing • Long Construction • Streamlined
Process Construction
Process (Cost
Reduction)
25-30% Materials • Large Amount of Waste • Minimal Waste
Generated • Wasteless Process
(Cost Reduction)
45-55% Labor • Labor Intensive • Mainly
Machineries (Cost
Reduction)
Print Our House. Print Our Future.
24. Monetary Cost
Major Portion of Cost: Labor
Efficiency of Human Labor < Efficiency of Machinery
Human Errors > Machine Errors
Streamlined Process Shorter Construction Time Man
Hours Saved
Not all processes can be replaced by machineries
Print Our House. Print Our Future.
25. Environment
Type Traditional Contour Crafting
Construction • Transportation of Materials • Minimal Construction Waste
Waste • Damaged materials need to • Optimal Allocation of
be replaced Resources
• Delivery of large quantities of • Optimal Use of Raw
materials require temporary Materials
storage, which adds on to the
waste generated
• CIRIA reported an estimated 72
million tonnes of construction
waste produced annually.
• Nature of Materials
• May not be easy to be
recycled or reused
• Plastic
• Plaster Board
• Asbestos
26. Environment
Type Traditional Contour Crafting
Water Pollution • Poisoning of Groundwater • Clean Construction
• Pollutants such as diesel, oil and pant • Materials are input into the 3D
can soak into the groundwater, a printer
source of human drinking water • Concrete is being printed out in a
• Much more difficult to treat than systematic and clean manner
surface water • Minimal silt and soil being produced
• Murky waterways or utilized
• Silt and soil runs into natural • Pollutants are minimized as
waterways construction is done cleanly,
• Restricts sunlight filtration reducing the need to wash the
• Destroys aquatic life structure after building it.
Air Pollution • Reduction of Air Quality • Air Quality Maintained or Improved
• Dust Particles • Clean Building
• Concrete, Cement, Wood, • Minimal Dust Particles
Stone, Silica • Reduced Use of Diesel Tractors and
• Health Problems Trucks
• Respiratory Illness • Minimal Health Problems
• Asthma • Improved Air Quality
• Bronchitis • Minimal Carbon Footprint
• Sources • Reduced Use of Diesel Tractors and
• Diesel engine exhausts of vehicles & Trucks
heavy equipment
28. Strength & Safety of Structure
Normal structure: 3000-6000 psi (pounds per square inch)
Contour structure: up to 10000 psi
Hollow walls
Does not compromise structural strength
Save materials
Good heat conduction characteristics
Materials: Mix of composite fibres, concrete and other
materials not disclosed
Print Our House. Print Our Future.
29. Flexibility in Designing
Allows mass market production for faster and cheaper construction
Also, allow customizations of design: just need to make changes in the
computer programming & CAD
Able to build various type of building with different configurations
Print Our House. Print Our Future.
30. Accessibility to Masses
Can execute intricate architectural features without compromising on
safety
Current linear support building: weak in strength
Eg: Adobe structure in Iran: less known and need expertise known by few people
• Able to mimic pattern
• Accessible to mass public instead of select few
Print Our House. Print Our Future.
36. Specific Target Market Segment
PRINT-A-HOUSE, INC.
Which Construction Submarket in
China?
Commercial Residential Industrial
Low Rise Sub-Urban
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37. Why Low Rise Sub-Urban Residential Market?
Migration of Rural Population to Sub Urban Towns
New suburban development in Shenyang, China
Print Our House. Print Our Future.
38. Why Low Rise Sub-Urban Residential Market?
Rising China Middle Class
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39. Why Low Rise Sub-Urban Residential Market?
Increase In Earning & Spending Power of China’s Middle Class
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40. Low Rise Sub–Urban Market
Low Rise (1-3 Stories) Buildings Due to Limitation of Current
Contour Crafting Technology
Sub-Urban Huge Potential Growth for the Next 10 Years
Strong Demand from Rapidly Growing Middle Class
Growing Developer Presence in Sub- Urban Market
Larger Land Areas for Low Density Building Developments
Print Our House. Print Our Future.
42. Problem With Quality
With Rapid Construction
Article (13th Sept 2012):
Hutchison Whampoa boss Li Ka-shing
“Quality problems afflict Hutchison Whampoa's Guangzhou
apartments”
Housing project Yicuiwan built by Hutchison Whampoa in the
Guangdong provincial capital was plagued by quality problems.
A result of lax construction and substandard materials
In 2005, the Beijing Yicuiyuan project also suffered Similar
problems.
Persistent problem that still plague china’s construction sector all
over china
Print Our House. Print Our Future.
44. Value Capture
• Direct Sales
• Fee Based Machine Rental
Construction • Fee Services (Consultation &
Firms (Main) Maintenance)
• Fee Based Machine Rental
Households/DIY • Fee Services (Consultation &
Maintenance)
(Alternative)
Print Our House. Print Our Future.
45. Cross Subsidization Opportunity
• Cheaper Printer
• Charge for Maintenance &
Construction Servicing
Firms (Main) • Supplier of Raw Materials
Required
• Cheaper Printer Rental
Households/DIY • Charge for Consultation/Design
Cost
(Alternative) • Supplier of Raw Materials
Required
Print Our House. Print Our Future.
46. Our Customers
Mass Market, Upscale Residential Construction Companies
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47. Competition Analysis
First Mover in On Site Automated Construction Technologies
Main Competitors:
Construction equipment manufacturing company
Limited Extend
Concrete Blocks Manufacturing Providers
Direct competition
Construction equipment Concrete Block Manufacturing
manufacturing companies Providers
Print Our House. Print Our Future.
48. Difficulties for Market
Penetration
Resistance to Change (High Switching Cost)
For construction companies already investing in those
equipment (high sunk cost)
Skeptical about New Technologies
Consumers tend to be Less receptive about new, untested Products
Complex Nature of China’s Construction Industry
Relies on Good Network/Relationships
High Corruption
Print Our House. Print Our Future.
50. Scope of Activities (Design)
Vertical Disintegration
Design Process: Traditionally, part of construction company
Lower barrier of entry for individual/aspiring freelancers
Opportunities:
Designing of Dream Houses Operations
Online Platform for House designs
Masses
Construction
Company
Design Engineering
Print Our House. Print Our Future.
51. Scope of Activities (Supply Chain)
Change of Focus of Activities
Focus of Supply Chain Management
Managing Raw Materials instead of Human Resources
Opportunities:
Direct Control over Raw Materials
Putting Human Capital Resources to Efficient Use
Discontinuity Switching Flow
Off Site Construction of Prefabricated Walls
Mismatch of Prefabricated Parts
Multiply Sub Contractors
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53. Strategic Control Analysis
Opportunities Threats
• Complex technology • Ignorance about existing techs +
- Possible discontinuity of conventional Resistance to new/unproven tech
manufacturing methods
- Lower costs (mainly labor) for construction • Cannot replace mass production at the
firms moment
- Enables small businesses and consumers
- Green • Emerging big shark competitors in
market (hostile takeover)
• Services - Better branding
- Combines design, social sharing, web - R&D funding
services, and physical products - Integral industry architecture
- Complementary assets
• Intellectual property protection e.g. patents, Possible “shakeout”
copyright against imitation
• New entrants with similar technology
• CAD software strategy (standard)
• Government collaboration
• Disruptive technology • Protection of Chinese residential
• Revolutionize suburban residential market construction industry against
through streamlined of construction process foreign invasion
• Labor-intensive to knowledge-intensive
54. Appropriability Regime
Protect first entrant advantage
IP protection
Copyright: DMCA 1998 on design
Patent: Contour Crafting technology
Standard CAD software
Licensed (China-specific)
Regulations in China
Scale effects (spread of intricate CAD designs)
Better control of complementary assets (the whole package) and
integral industry architecture
Vertical integration
Print Our House. Print Our Future.
56. Impact Analysis
Socio-political Impact:
High level of Retrenchment in construction labor market
BUT:
Create jobs in a more knowledge-intensive workforce (designers, computer
programmers, engineers, etc.)
Reduce corruption
Economic Impact
Rapid infrastructure development to support the fast growing economy
Optimal utilization of raw materials, hence lower the costs for the
construction firms
Environmental Impact
Less pollution
Less wastage: conservation of resources
Print Our House. Print Our Future.
58. Conclusions
Outlook:
Industry-wide use in 5-8 years time
Few hundred thousand dollars per machine
How Print-A-House can influence the future of construction
industry
Shift from labor-intensive towards a more knowledge-intensive
construction industry
A safer, cheaper, faster construction process
Revolutionary advancement in the current construction
technology in our target market
Though still hindered with limitation it has Huge Potential
Print Our House. Print Our Future.