ZEMCH 2015 - International Conference Proceedings | Page 508

Regarding the management of production systems, Pine II (1999) argues that the development of
just-in-time production, lean manufacturing, time-based competition and other advantages that
come along with the lean production philosophy, were the main enablers of increased product
variety at relatively low costs. Flexible production systems allow companies to explore what has
been named as economy of scope. This means that the same system is able to produce a wide
variety of products, in a production line that is easy to be reconfigured while still exploring the
economy of scale (Szwarcfiter and Dalcol, 1997).

Mass customization in the construction industry
In the construction sector, mass customization has been adopted mostly for industrialized housing production. Factory built homes can be delivered within short time frames and at relatively
low costs, while maintaining product’s quality (Noguchi, 2005). In that context, the customization
process happens in three stages (Noguchi, 2005). Firstly, the company offers a catalogue with
different types of house design for their clients. Options vary from different styles, technology
and constructive elements. Such elements can be structural, defining the housing spatial characteristics, external, defining the housing appearance and internal, defining functionality and interior appearance. In addition to that, it is also offered air conditioning, security systems and other
accessories. Clients can combine those components in different ways, and a virtual image shows
the final result with an estimated price.
According to Barlow et al. (2002), Japanese companies adopt different practical approaches for
mass customization, which depends on how the supply chain is organized. Some companies customize through Additional work through simple and complementary production process close to
the delivery point. Others involve their costumers in the assembly process, customizing through
the Combination of standard components, while there are still some that have a Custom-tailored
approach, involving costumers in the design phase and letting them request changes on modules. Thus, the Japanese industry can efficiently deliver mass customized homes by pulling production, using standard and pre-fabricated components and managing the supply chain.
However, in places where traditional construction techniques are widely used, it is more difficult
to achieve such efficiency (Barlow and Ozaki, 2003). Hence, these authors suggest a transformation from a predominantly sequential, manual and fragmented process into the use of modular
design, pre-fabrication and assembly of components, as well as an integrated process of design
and production supported by efficient communication and coordination. In addition to the difficulties related to technical issues, Barlow et al. (2002) highlights the limitations imposed by urban
policies; the long development cycles, which makes it more difficult to introduce customization;
the constructors conservative attitudes towards innovative projects; as well as the attitude to
consider only construction related activities, not considering the quality of supporting services
to customers.

Research method
Case study was the research strategy used in this investigation. Two case studies were carried out
in existing low-income housing programs in Brazil: the Associative Credit Program (CCA) and the
Residential Leasing Program (PAR). In both cases, houses are acquired through low-interest loans
from the government. The former aims at low-income families earning up to 10 minimum wage
salaries, while the later is focused on families earning up to 6 minimum wage salaries. Those programs were chosen for being representative on the government efforts for delivering low-income

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ZEMCH 2015 | International Conference | Bari - Lecce, Italy