OM in the News: The 3-D Printed House

The printer can print walls with a maximum height of 8½ feet and a width of up to 28 feet, with no limits on length.

A Texas startup says it will be able to use a 3-D printer to churn out a concrete house within days by year-end, a technology that has the potential to help solve housing shortages, writes The Wall Street Journal (March 12, 2019). The firm, Icon,  says the printer can produce bungalows of up to 2,000 square feet, nearly as large as the typical 2,400-square-foot American home. A year ago, Icon built a 350-square-foot home in Austin using the new technology.

Still, home builders are likely to face skepticism about the look of the new houses, which are poured one layer at a time, producing walls that resemble the folds of a shar pei dog. The technology faces other practical hurdles. Scaling up the production and shipment of expensive and heavy machinery is formidable. Building homes in windy, rainy, hot or cold conditions presents another test.

The new 3-D printer is operated by a tablet and requires only a few people to run and supervise it. The 3,800-pound machine squeezes out a stream of concrete as though it is icing a cake. The machine replaces workers who frame a home and install sheet rock, insulation and exterior finishes. It also produces less waste than a traditional construction site, where a third of materials end up in the trash.

Icon said it costs about $20,000 and takes several days to 3-D print a 2,000-square-foot house. After factoring in the cost of land and other construction such as plumbing and finishes, it works out to a reduction of about 30% in total costs. In Austin, where the average home is roughly $400,000, Icon said it could make a home $120,000 cheaper. A 3-D-printed home could address real problems facing the industry. Construction costs have skyrocketed due to shortages of workers and rising material prices.

Classroom discussion questions:

  1. Why is the industry skeptical about 3-D printing’s widespread use?
  2. What are the advantages of the approach from an OM perspective?

OM in the News: Robots May Build Your Next House

An electrician checks her blueprint at Baltimore’s Blueprints Robotics factory.

“The future of U.S. homebuilding may depend on robots,” writes Businessweek (April 24-30, 2017). With construction workers in short supply and demand rising, builders are turning to “fast factories” that can build houses like cars on an assembly line, using robots to fire 1,000s of nails into studs each day without missing. Other machines cut, sand, drill, and insulate. The plants enable developers to fill the labor gap by having houses and apartment buildings manufactured off-site, for less money and in a fraction of the time. Even Marriott Hotels is increasingly turning to modular construction.

Builders hire the factories to manufacture homes in sections, which are transported on trucks, then laid down on foundations by cranes, like giant Legos. Sometimes the modules are fully framed rooms, complete with tile showers and gourmet kitchens. The house is 60% complete when it arrives. The idea of transporting homes in prefabricated sections has roots in the early 1900s, when homesteaders could buy kits from a Sears Roebuck catalog for assembly on their newly acquired plots of land. In the 1980s and 1990s, it became increasingly popular to build lower-cost homes in factories.

Today’s plants are capable of producing bigger buildings with more elaborate designs. The Blueprint Robotics factory in Baltimore is one of the first in the U.S. to use robots. Taller multifamily buildings, dorms and hotels are increasingly being manufactured indoors. And so are mansions that sell for millions. Having an indoor facility means weather delays are rarely a factor. Each worker is given a narrow concentration, like tiling floors or sanding drywall, which increases production speed. People without any background in construction can become skilled laborers in 2 weeks.

Classroom discussion questions:

  1. Provide 2 other examples of fixed position layout (see Chapter 9).
  2. What are the disadvantages of this automated, modular approach?