Pre-Manufactured Value– Are We Asking the Right Question?

Constructing Excellence

On Wednesday 6th September, we hosted an online event, exploring PMV and asking the question ‘is it the right solution?‘.

We were thrilled to be joined by Alex Small, Digital Platforms Lead at Tata Steel, who Chaired the discussion as well as some fantastic speakers:

  • Helen Sturdy, Head of Procure23
  • Scott Tacchi, Head of MMC at Sir Robert McAlpine
  • Phil Henry, Market Director, Genuit Group

Speaking from their own experiences and work using PMV, they gave insight into the pros and cons of PMV and how to make the most of it.

Procure 23

Helen Sturdy kicked off the event with insight into P23 and how the NHS as a client, works to drive value. Part of this value delivery stems from the NHS’ consideration of the Construction Playbook, both as a client and within their P23 framework.

The Construction Playbook section on MMC, indicates the importance of considering wider value on projects rather than MMC in isolation. This ensures that MMC is used appropriately to support the delivery of other project outcomes, i.e. Net zero, social value, speed, pace and delivery of the project, rather than using MMC solutions for the sake of delivering higher PMV.

P23’S MMC Toolkit

In order to drive this, P23 have included specific mentions of MMC goals in their business case and explored how to demonstrate this effectively and evaluate the outcomes of MMC use. This led to the creation of their MMC toolkit. Their aim being, to provide a toolkit that:

  • is consistent.
  • drives good practice.
  • is recognisable and easily understood by the assurance team.
  • helps identify what is MMC for the clients.
  • helps to show potential opportunities and what they mean.

The MMC Toolkit is supported by the P23 MMC working group, which helps to ensure the toolkit remains adaptable and up to date, whilst also engaging in knowledge sharing.

Within the toolkit is an executive summary which provides an overview of a project’s MMC results, including PMV percentages.

Is PMV the Right Solution?

While PMV has a part to play, it should not be the sole driver or evaluated method of MMC delivery as there is more to MMC than purely offsite manufacturing.

 

 

 

 

 

 

 

 

 

 

 

 

 

What is MMC?

Our next speaker, Scott Tacchi, identified that one of the difficulties around MMC is that it means different things to different people. Through his work at Sir Robert McAlpine, he offered a definition to encompass the range of innovations that make up MMC:

MMC- a broad term to describe contemporary innovations in construction, including new technologies (such as digital tools and techniques), offsite manufacture and use of efficient processes to deliver productive, sustainable and better outcomes

 

 

 

 

 

 

So What Is PMV?

PMV is the measure of MMC.

Put simply, if you look at a contracting package of work, everything before it gets to the site gate is PMV and everything within the site gate is not.

The problem with PMV is that it is too narrow a view of MMC.

PMV and the NHP/NHSE

Through the NHSE and NHP’s recent work around the reporting of MMC, they have highlighted the need for a focus on a combined MMC value.

This gives a better understanding of the wider MMC opportunities on a project for example, the design stage (category 0) which, if done well, leads to better PMV opportunities further along the project’s life cycle.

Is PMV the Right Solution?

PMV is the 1st step on the journey to a more detailed measurement and understanding of on and off-site productivity.

It also provides a simple tool for comparing projects which enables most people to understand it.

For now, it is useful while we build a more defined view of MMC assessment.

Implementing PMV

Phil Henry, Genuit Group, spoke to the group about how his organisation have adopted greater pre-manufactured opportunities to enable the business to prosper amongst the drivers around PMV, labour crisis and carbon.

Their journey started with a change to their business model to encourage more interaction and engagement with their ultimate clients rather than solely distributors. This has enabled them to bring innovative opportunities directly to the client and discuss their needs from the initial design process.

This early engagement has helped to reduce waste, tackle skills shortages and explore pre-manufactured parts and standardised parts. This standardisation would also reduce costs and carbon, demonstrating how higher PMV can support the delivery of wider targets.

Is PMV the Right Solution?

PMV is a useful measurement in assessing how well pre-manufactured parts are being implemented and is a starting point for measuring the impact on target such as carbon.

 

 

 

 

 

 

 

So, Is PMV the Right Solution?

The general consensus is that, for now, PMV is necessary to measure and compare pre-manufactured opportunities, however, it does not enable full evaluation of MMC as the view is too narrow. It is a starting point for a more defined and comprehensive measurement tool to better assess the use of MMC on projects.

We need to ensure we take a wider view of MMC and combined value to ensure the correct tools and approaches are being selected on projects to deliver value in various ways, rather than for the sake of PMV.

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