Building Planning Capacity in the Offsite Construction Industry: Introducing the Theory of Constraints for Process Optimization

Abstract

Offsite construction (OSC) is a construction method that integrates two different paradigms, construction and manufacturing, and faces different challenges in production variability and demand synchronization. This study explores the application of the Theory of Constraints (TOC) as a strategic operation management framework to optimize manufacturing processes in the OSC industry. A five-step approach is presented to enhance production flow and reduce inefficiencies during the manufacturing stages. The study proposes a tailored framework incorporating TOC within the OSC environment, supported by metrics like cycle time and work-in-progress to detect and address bottlenecks. By emphasizing real-time data monitoring and continuous improvement, the framework highlights TOC’s ability to streamline production, reduce waste, and adapt dynamically to changing conditions, making it a critical methodology for improving adaptability, resilience, and scalability in offsite and modular construction.