EU Sustainable Energy Week - How to support innovation to enter the market


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The increasing complexity of the construction industry is driving the evolution of the industrial management mindset toward a new post-industrial, or performance paradigm. More and more it is becoming critical for the construction industry to assess and align its core competitive capabilities with its contextual environment.

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  • For any area that needs improvement, the first step is to replace commodity-based standards with performance-based standards.  “ Performance" here always relates to "total building performance," so that, even though you can talk about the performance of a component part or sub-system, it must be measured in relation to the performance of the total building system.
  • The vision for a highly innovative construction industry is currently focused on energy and the environment (necessity being the mother of invention). Sustainability will continue to be the primary recipient for research money. There remains pent up demand for innovation in areas like advancements in the integration of building automation systems toward smart building systems, which will become part of the overall facilities or asset management systems; systems and compound building assemblies that integrate disciplines an sub-disciplines; lighter and more productive building solutions; and new opportunity for development of construction field automation and related tools and equipment.   Innovation in construction will continue to be severely hampered until the industry makes the performance paradigm shift .
  • Every industry has standards and measures, and every industry organizes itself around its basic units of measure. In the industrial paradigm, the unit is cost of parts and services (which, in the end, is only one aspect of true value, which includes qualities like sustainability, functionality, efficiency, etc.).  As long as buildings are planned and built according to cost units, they will function at the lowest value within a specification. Within the CPR the EOTA organization is developing tools and methodologies to allow performance becoming the fundamental unit of building. Like that all planning and construction will re-organize itself to produce the highest building performance for the lowest cost.       The introduction of CPR is necessary if the industry intends to produce innovative, cost-effective, high performance buildings. This has resulted in the transformation of EOTApproval to EOTAssessment.
  •   Once performance measures and standards are operating, the industry will re-organize itself to meet performance objectives. Like other high-performing industries, construction will integrate and consolidate, and will be able to pursue the  Capacity Development and Application necessary to support premium research and development. The meaning of CE Marking could become a driver.   It's great that our mp3 players and search engines are so innovative, but where we really need innovation is in our foundational industries, like energy and construction. As national concern grows over energy and the environment, there will be increasing demands for innovation and new product and system development in construction. Construction will become the next candidate for government mandates and legislation, which may not be an ideal solution. If, however, performance standards are implemented and the construction community starts researching and developing cost effective, innovative products and systems, then the economy can enjoy all the benefits of a market-driven solution. Political participation could then be more positive with grants and incentives to innovation.
  • The ETA route has to embrace products ranging from minor variants that fall just outside existing hENs to novel products, which the industry has not used before. Much of the debate has focussed on the needs of the manufacturer but it is also important to consider the needs of the ‘deciders’ in the chain. Many of these have the attributes of SMEs and will base their acceptance of a product on:   1. Previous experience with a similar product 2. The existence of design codes into which product performance data fits 3. Their own staffs technical ability to interpret data 4. The existence of additional reassurance on product suitability   The more novel the product the greater the probability that conditions 1, 2 and 3 will not apply and independent reassurance of the conditions under which the product will perform will be sought. Condition 4 has traditionally been served by National Approvals, which not only evaluate performance but also pass expert opinion on the conditions under which a product will perform. As such National Approvals deal with both regulated and non-regulated requirements.   An EOTA survey has shown that the current ETA has assisted in winning acceptance for products albeit that it tends to focus on regulated requirements and thus falls short of National Approvals in dealing with non-regulated needs such as those laid down by insurance bodies. As such the document itself has an important value both within and outside the EU.   The content of the proposed ETA is being debated in detail and appears to be more an evaluation (putting a value to) of the key characteristics. Whilst this brings greater consistency between the CEN and EOTA route to CE marking it could detract from the value of the ETA as a Condition 4 reassurance document in its own right.
  • Performance standards and measures + function-based modeling becomes a fantastically powerful information processing engine that brings measurement and statistical analysis to  all levels and dimensions of a project, from planning, to production to facility operation . This is the engine that replaces the horse, the packet-switching network that replaces circuit-switching, the satellite that replaces the landline, the search engine that replaces the card catalog.   Like all-important transitions, the transition will meet resistance. The necessary collection and organization of performance data will be a pain, but it is a fraction of the pain involved in continuing to labor under the diseased cost-based system. Moreover, the pain of performance data collection will be short -- the break even will be within the first couple pilot projects.   
  • When production and procurement revolve around total building performance (instead of component commodities), all purchases, designs, contracts, etc. are chosen for how well they contribute to the overall performance of the building system.  The benefits of this practice are twofold: (1) over time, exclusive focus on performance leads to increased quality, which leads to increased productivity, value and reduced costs (per Deming: less re-work, better use of the system, etc.), and (2) working within a performance-based specification means that innovative alternatives are encouraged because whatever system or combinations of systems best perform that function wins. In this way, performance-based value embraced by the EAD opens up procurement and production to all sorts of innovations that commodity-based procurement discourages. Moreover, once the EOTA performance data archive is established, building teams and stakeholders will be able to access market performance averages and best practices.   The following chart shows Why (left to right) performance standards and measures lead to reduced costs, and How (right to left) reduced costs, increased value and productivity follow from performance standards and measures. The process for improving quality and innovation resembles Deming's cycle, although much of the "Act" and "Test" stages can be done virtually with today's technology.
  • In a system of innovation the linkages between the various actors in this integrative process, in which different kinds of knowledge are produced, distributed and applied, are critical. Any given product usually goes through several transformations before it is sold to its eventual end-user or consumer. The final "integrators" in the case of the construction industry are design, engineering, and general contracting or assembly firms. When these transitions have been made, then the construction industry can be said to have entered the  performance paradigm . The benefits of such a shift are many, and include high performance "green" buildings produced by a high performance industry ,  as well as the national and global recognition that will attend successful examples of innovation and optimization in such a complex industry in which EOTA is keen and prepared to participate.
  • EU Sustainable Energy Week - How to support innovation to enter the market

    1. 1. EU SUSTAINABLE ENERGY WEEK 24-28 JUNE 2013 Energy Peter D. Schellinck EOTA Secretary General 26 June 2013
    2. 2. 2 How to support innovation to enter the market? Performance Paradigm Shift. Expertise Product manufacture Plant Construction Work Contract Regulations - European - National Stakeholders Certification: Attestation of the conformity of … against a set of defined and stated requirements , according to a defined scheme, and in a well specified context. Assessment of construction process: in a defined context, determining technical recommendations allowing guidance to the stakeholders in their decisions on the reliable construction of a defined work.
    3. 3. 3 How to support innovation to enter the market? • All/each ETA issued on the basis of an EAD (or ETAG as EAD) • ETA is no more a Harmonised Technical Specification (EAD is now the HTS) • EAD developed and adopted by the Organisation of TABs = EOTA • ETA issued by a TAB acting on its own • Use conditioned by change in the product or in the assessment methods + criteria (EAD) • Agreement on characteristics related to the intended use of the product • Focus on the performances + on assessment and verification of constancy of performance European technical assessment: ETA
    4. 4. 4 General assembly (+ 50 member bodies) General assembly (+ 50 member bodies) Executive Board (7 or 8 members, incl. President Yannick Lemoigne) (= old Management Team) Executive Board (7 or 8 members, incl. President Yannick Lemoigne) (= old Management Team) EOTA Secretariat Secretary General: Peter Schellinck Project Manager: Andrea Oel-Brettschneider Secretary: Karina Lens EOTA Secretariat Secretary General: Peter Schellinck Project Manager: Andrea Oel-Brettschneider Secretary: Karina Lens NEW STRUCTURE Technical BoardTechnical Board
    5. 5. 5 New Regulation (CPR) from 1/07/2013? • No longer Directive but Regulation: uniform application in all MSs • Clearer description of responsibilities of all players • Enhanced control on NBs • Enhanced market surveillance • Simplified systems for SMEs • Clarification of meaning of CE marking • CE marking mandatory when hEN exists • CE marking voluntary through ETAG and CUAP replaced by EAD (European Assessment Document) as basis for ETA (European Technical Assessment) • Stricter procedures for making EADs
    6. 6. 6 CPR - Meaning of CE Marking (Art. 8(2)) By affixing or having affixed the CE marking, manufacturers indicate that they take responsibility for the conformity of the construction product with the declared performance as well as the compliance with all applicable requirements laid down in this Regulation and in other relevant Union harmonisation legislation providing for its affixing.
    7. 7. 7 CE Marking will be accepted in 33 countries (from 1/7/2013) Austria (EU) Belgium (EU) Bulgaria (EU) Croatia (from 1/7/2013) Cyprus (EU) Czech Republic (EU) Denmark (EU) Estonia (EU) Finland (EU) France (EU) Germany (EU) Greece (EU) Hungary (EU) Ireland (EU) Italy (EU) Latvia (EU) Lithuania (EU) Luxembourg (EU) Malta (EU) the Netherlands (EU) Poland (EU) Portugal (EU) Rumania (EU) Slovak Republic (EU) Slovenia (EU) Spain (EU) Sweden (EU) United Kingdom (EU) Iceland (EFTA) Liechtenstein (EFTA) Norway (EFTA) Switzerland (MRA) Turkey (EC-Turkey agreement)
    8. 8. 8 ETAREG vs ETADIR • ETADIRECTIVE 89/106/EEC: A European Technical Approval is a favourable technical assessment of the fitness for use of a product for an intended use, based on fulfillment of the essential requirements for building works for which the product is used. • ETAREGULATION 305/2011 : documented assessment of the performance of a construction product, in relation to its essential characteristics, in accordance with the respective European Assessment Document
    9. 9. 9 Legal character: mandatory/voluntary Directive 89/106/EEC + national implementation Regulation Published ETAG → CE+ETADIR mandatory or voluntary, dependent of the Member state where the product is placed on the market ETAREG → voluntary, but if an ETAREG has been issued, CE marking is an obligation Without ETAG (CPD art.9.2) → voluntary, independent of the member state where the product is placed on the market
    10. 10. 10 New ETAs issued (cumulative) (excluding renewals 20/6/2013)
    11. 11. 11 EAD – ETA – DOP process ETA Request Manufacturer’s technical file European Assessment Document (EAD) European Technical Assessment (ETA) ETA Content • Legal bases • Definition of product-type(s) and intended use(s) • Performance of product-type(s) and assessment methods • Assessment and verification of constancy of performance Declaration of Performance Assessment and verification of the constancy of performance (AVCP) CE marking + instructions and safety info
    12. 12. 12 Simplifiedprocedures (Art.36to38) hEN Different ways to EU marketing Market Declaration of Perf. CE marking Regulation (EU) No 305/2011 (of 9 March 2011) Regulation (EC) No 764/2008 (of 9 July 2008) MutualRecognitionof NationalTechnicalDocument ETAssessment
    13. 13. 13 CPR as a Performance Paradigm Shift EOTA Added Value
    14. 14. 14 The world’s first 3D-printed house a performance paradigm shift THANK YOU