Purpose The purpose of this study is to investigate the use of on-site factories that combine the strengths of both prefabrication techniques and a traditional work environment to support lean principles and promote industrialized construction for on-site operations. Design/methodology/approach Based on the principles of lean construction and design for manufacturing and assembly (DfMA), discrete-event simulation is used to evaluate different arrangements and configurations of an on-site factory for the prefabrication of structural insulated panels (SIPs). Findings The proposed on-site factory provided a feasible way to promote lean and industrialized construction principles. Also, these types of factories are particularly relevant for projects in remote areas that do not have sufficient infrastructure. Further, it is also a good solution for strengthening the local economy by using local labor and suppliers, hence assisting in the creation of a socially responsible framework. Originality/value This study presents the design of an on-site factory for the prefabrication of SIPs. This type of on-site assembly supports not only lean principles but also promotes social responsibility by capitalizing on local labor. This approach could be particularly interesting for construction companies in developing countries or working in a project with limited infrastructure.
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