1

CHAPTER 1
INTRODUCTION

1.1

GENERAL
The construction industry is traditionally divided into three sub-sectors.

They are: 1) the construction of buildings; 2) road, highway, and other

infrastructure construction; and 3) specialty trades. It thus encompasses all the
businesses that build either houses and office buildings or highways and bridges,
as well as those who do the specialized work of electricians, plumbers and
masons, who are typically involved in the construction of all kinds of structures.
Waste is one of the serious problems in construction industry. Waste has direct
impact on the productivity, material loss and completion time of project which
resulting in loss of a significant amount of revenue. The physical waste
contributes a significant part of landfill, and studies show that 13-26% of landfill
is construction waste which emphasis on the need of a systematic and efficient
waste minimization method to control the generation of waste at different level.
The construction industry produces large amount of waste, equal to four times
produce in households and more than 50% deposited in landfill. Therefore, to
avoid the waste generation, need to find out the root cause of the waste. The
causes that contribute to the generation of construction waste are various.
Construction waste consists of unwanted material produced directly or
incidentally by the construction or industries. This includes building materials
such as insulation, nails, electrical wiring, and rebar, as well as waste originating
from site preparation such as dredging materials, tree stumps, and rubble.
Construction waste may contain lead, asbestos, or other hazardous substances.

Much building waste is made up of materials such as bricks, concrete and wood
damaged or unused for various reasons during construction. Observational
research has shown that this can be as high as 10 to 15% of the materials that go
into a building, a much higher percentage than the 2.5-5% usually assumed by
quantity surveyors and the construction industry. Since considerable variability
exists between construction sites, there is much opportunity for reducing this
waste. Certain components of construction waste such as plasterboard are
hazardous once land filled. Plasterboard is broken down in landfill conditions
releasing hydrogen sulfide, a toxic gas. There is the potential to recycle many
elements of construction waste. Often roll-off containers are used to transport the
waste. Rubble can be crushed and reused in construction projects. Waste wood
can also be recovered and recycled. Government or local authorities often make
rules about how much waste should be sorted before it is hauled away to landfills
or other waste treatment facilities. Some hazardous materials may not be moved,
before the authorities have ascertained that safety guidelines and restrictions have
been followed. Among their concerns would be the proper handling and disposal
of such toxic elements as lead, asbestos or radioactive materials.
1.1.1 Construction Waste
Waste is a product or material that is unwanted . Waste is also can be
defined as any materials by product of human and industrial activity that has no
residual value .Construction waste can be clustered into two groups namely the
physical and non physical waste.

1.1.1.1 Physical Waste

Physical construction waste can be defined as a mixture of inert and noninert materials arising from construction, excavation, renovation, demolition,
roadwork and other construction-related activities. Similarly defined by Shen et
al. and Kofoworola and Gheewala , construction and demolition waste is
generally defined as waste which arises from construction, renovation and
demolition activities including land excavation or formation, civil and building
construction, site clearance, demolition activities, roadwork, and building
renovation. But some defined as solid waste and consists of concrete debris,
different types of bricks and blocks, various kinds of tiles, steel reinforcement,
wood, plastic materials and paper, as well as gravel and soil . Research has also
interpreted in physical construction waste as waste origins and can be found in.
1.1.1.2 Non Physical Waste
On the other hands, waste can be defined as non-value adding works. The
term non value-adding activity is used to differentiate between physical
construction waste found on-site and other waste which occurs during the
construction process. This type of waste also mentions by other researcher as
intangible waste, in-directs waste or non-physical waste. Womack and Jones
describe waste as any human activity that absorbs resources but creates no value,
such as mistakes that require rectification, production of items no one wants,
process steps that are not needed, unnecessary movement of employees, and
people waiting for the conclusion of upstream activities. Furthermore, Koskela
also describe waste as any inefficiency that results in the use of equipment,
materials, labour or capital in larger quantities. In other words, waste in
construction is not only focused on the quantity of waste of materials on-site, but
also related to several activities such as overproduction, waiting time, material

handling, processing, inventories and movement of workers. Similarly, researcher

from Indonesia defined waste is not only associated with waste of materials in the
construction process, but also other activities that do not add value such as repair,
waiting time and delays.
1.1.1.3 The seven types of waste readily found in construction:
Defects. Everyone in construction understands this type of waste. It includes
doing the wrong installation, defects in fabrication, and errors in punch lists. Not
meeting the required code is waste. Rework in construction is rarely measured.
Overproduction of goods. This happens when we fabricate material too early or
stockpile material in the warehouse or at the job site. Estimating and bidding jobs
that are not won is a form of this waste. Printing more blueprints or making more
copies of a report than needed is overproduction.
Transportation. This waste occurs when we move material around the shop,
when we load it on the truck or trailer, when we haul it to the job site, when we
unload it, and when we move the material from the lay-down or staging area to
the installation point.
Waiting. Construction is full of this waste, including when a crew waits for
instructions or materials at the job site, when a fabrication machine waits for
material to be loaded, and even when payroll waits for the always-late timesheets.
Over processing. This waste includes over engineering, requiring additional
signatures on a requisition, multiple handling of timesheets, duplicate entries on
forms, and getting double and triple estimates from suppliers.
Motion. These treasure hunts happen when material is stored away from the
job or when workers look for tools, material, or information. This waste also

occurs in the office or job site trailer, when looking for files, reports, reference
books, drawings, contracts, or vendor catalogues.
Inventory. This includes uncut materials, work in process, and finished
fabrications. Some contractors claim that they have no inventory because they
job-cost all material. While this may work for accounting, if the material is not
yet installed and isnt being used by the customer, its waste. This waste includes
spare parts, unused tools, consumables, forms and copies, employee stashes, and
personal stockpiles. One could argue that the unfinished facility is inventory and
is waste until operational. Waste is everywhere in construction and has been for
hundreds of years. This is not a statement of blame, just fact. It is so much a way
of life that most construction managers dont even sees it. They accept waste as
inevitable and unpreventable and add it into the cost of the job. Thus, the
customer pays for it. However, some construction companies dont accept waste
as a necessary part of doing business. They attack it through the application of
lean.
1.1.2 SIGNIFICANT CAUSES
Overproducing: Occurs when a subcontractor wants to maximize his daily
productivity to request more payments not realizing that he has
overstepped on the work of somebody elses. This may lead to partial
demolition and rework to get back on schedule. Example: drywall
contractor installs drywall before electrician has completed circuits.
Idle time: Poor coordination results in lost/idle time in projects. Example:
For a concrete pour for a slab, if poor coordination results in late delivery,
waiting laborers to direct the pour result in wasted labor expense.

Transporting: Excessive transport consumes resources, not add value. A

poor site layout can result in long travel distances to bring materials to the
point of use. Example: Drain pipes stored at a location far from where the
installation is planned for results in added expense to transport cost.
Processing : Research has shown high levels of material waste in
construction. As materials can be 50-60% of projects, there is high cost
overrun potential. Material waste can be due to: 1) Design (poor
anticipation of design impacts; 2) Procurement (wrong material or
suboptimal order quantities).
Inventory: Excessive amounts of inventory (materials and supplies) can
result in: 1) tying up capital and impacting cash flow negatively, 2)
storing excess inventory has carry cost for storage, 3) managing the
storage of materials long term has a risk of spoilage or unexplained loss
of materials.
Wasted operator motion (using unnecessary motion) : Inexperienced
trades may not be familiar with best practices and not be able to reach the
same levels of productivity of experienced workers. Poor job organization
could cause the operator to make additional steps to carry out the job. I.e.
experienced trades use templates or jigs, setup kits, prefabrication,
appropriate tools and fasteners so that each installations can proceed
quickly without risk of error or delay.
Producing defective goods : Construction that does not meet codes may
be rejected by an inspector. It then has to corrected by rework.
Construction errors require correction and inhibit downstream activities
because of the time delays that usually result.
Making do: This is caused when a task is initiated without ensuring
that all needed resources are available (information, equipment, materials

or workers that have a needed skill for the work). Also occurs if resources
become unavailable after the task has started and continuing the task.
Not speaking and not listening: Not listening is caused by the command
and control style of leadership in which those in power are disinclined to
listen to those who are closest to the problem. Not speaking arises as a
conditioned response from overt or implied signals that by saying
something contrary to the prevailing beliefs of management, one will be
labeled as going against the grain, or a complainer or troublemaker.
There are 5 selected significant factors placed the highest ranked or key position
among the other factors and they are;
1.
2.
3.
4.
5.

Poor site management and supervision,

Lack of experience,
Inadequate planning and scheduling,
Mistakes and errors in design,
Mistakes during construction.

1.2 OBJECTIVES
The objectives of the study are:
1. To identify the risks in the construction project.
2. To identify critical waste variables and the associated waste
causes.
3. To quantify different types of waste present in construction sites.
4. To propose ways to minimize them based on lean construction
principles.

5. To minimize the risks using lean construction techniques.

1.3 AN INTRODUCTION TO LEAN CONSTRUCTION
Lean Construction is a combination of operational research and practical
development in design and construction with an adaption of lean manufacturing
principles and practices to the end-to-end design and construction process. Unlike
manufacturing, construction is a project based-production process. Lean
construction is concerned with the alignment and holistic pursuit of concurrent
and continuous improvements in all dimensions of the built and natural
environment: design, construction, activation, maintenance, salvaging, and
recycling (Abdel Hamid 2007, Abdel Hamid et al. 2008). This approach tries to
manage and improve construction processes with minimum cost and maximum
value by considering customer needs (Koskela et al. 2002[1]).
The term "Lean Construction" was coined by the International Group for
Lean Construction in its first meeting in 1993 (Gleeson et al. 2007). The
Construction in "Lean Construction" refers to the entire industry and not the
phase during which construction takes place. Thus, Lean Construction is for
owners, architects, designers, engineering, constructors, suppliers. Lean
construction is a way to design production systems to minimize waste of
materials, time, and effort in order to generate the maximum possible amount of
value," (Koskela et al. 2002). Designing a production system to achieve the stated
ends is only possible through the collaboration of all project participants (Owner,
A/E, contractors, Facility Managers, End-user) at early stages of the project. This
goes beyond the contractual arrangement of design/build or constructability
reviews where contractors, and sometime facility managers, merely react to
designs instead of informing and influencing the design (Abdel Hamid et al.

2008). Lean construction recognizes that desired ends affect the means to achieve
these ends, and that available means will affect realized ends (Lichtig 2004).
Essentially, lean construction aims to embody the benefits of the Master Builder
concept (Abdel Hamid et al. 2008).
Lean construction (LC) is a method of production aimed at reducing costs,
materials, time and effort. Essentially, the methodology is to minimize the bad
and maximize the good. Using the principles of lean-construction, the desired
outcome would be to maximize the value and output of a project while
minimizing wasteful aspects and time delay. This outcome is produced when
standard construction approaches are merged with a clear and concise
understanding of project materials and information and two sets of management
archetypes, planning and control. This may seem complex to understand, but the
essence of this system to use what is necessary without extra. This can only be
done by strategic planning and action by a management group and with the help
and aid of all workers. It should be understood that lean construction is a
philosophy with principles and ideologies, but it is not a concrete plan of action
with set tools and methods. LC principles are the same throughout the many
different schools of thought. The basic principles include: creating a predicable
atmosphere based on planning and data, reducing the overflow of waste from
careful planning and increasing the communication flows between the customer
and the project at hand. Lean is a way of thought based on the notion that less is
more.
"One can think of lean construction in a way similar to mesoeconomics.
Lean construction draws upon the principles of project-level management and
upon the principles that govern production-level management. Lean construction
recognizes that any successful project undertaking will inevitably involve the

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interaction between project and production management." (Abdel Hamid 2007)

Lean construction supplements traditional construction management approaches
with (Abdel Hamid 2007): (1) two critical and necessary dimensions for
successful capital project delivery by requiring the deliberate consideration of
material and information flow and value generation in a production system; and
(2) different project and production management (planning-execution-control)
paradigms. While lean construction is identical to lean production in spirit, it is
different in how it was conceived as well how it is practiced. There is a view that
"adaptation" of Lean Manufacturing/Production forms the basis of Lean
Construction. The view of Lauri Koskela, Greg Howell, and Glenn Ballard is very
different, with the origin of lean construction arising mainly from the need for a
production theory in construction and anomalies that were observed in the
reliability of weekly production planning.
Getting work to flow reliably and predictably on a construction site
requires the impeccable alignment of the entire supply chain responsible for
constructed facilities such that value is maximized and waste is minimized. With
such a broad scope, it is fair to say that tools found in Lean Manufacturing and
Lean Production, as practiced by Toyota and others, have been adapted to be used
in the fulfillment of Lean construction principles. TQM, SPC, six-sigma, have all
found their way into lean construction. Similarly, tools and methods found in
other areas, such as in social science and business, are used where they are
applicable. The tools and methods in construction management, such as CPM and
work breakdown structure, etc., are also utilized in lean construction
implementations. The three unique tools and methods that were specifically
conceived for lean construction are the Last Planner System, Target Value Design,
and the Lean Project Delivery System. If the tool, method, and/or technique will

11

assist in fulfilling the aims of lean construction, it is considered a part of the

toolkit available for use. A sampling of these tools includes: choosing by
advantages (CBA), BIM (Lean Design), A3, process design (Lean Design), offsite
fabrication and JIT (Lean Supply), value chain mapping (Lean Assembly), visual
site (Lean Assembly); 5S (Lean Assembly), daily crew huddles (Lean Assembly).
The common spirit flows from shared principles:
Whole System Optimization through Collaboration and systematic
learning
continual improvement/pursuit of perfection involving everyone in the
system
a focus on delivering the value desired by the owner/client/end-user
allowing value to flow by systematically eliminating obstacles to value
creation and those parts of the process that create no value
creating pull production
The differences in detail flow from a recognition that construction is a project
based production where the product is generally a prototype.
The priority for all construction work is to:
1. Keep work flowing so that the crews are always productive installing
product
2. Reduce inventory of material and tools and

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3. Reduce costs
1.4 HISTORICAL DEVELOPMENT
The first emergence of lean thinking was by Eiji Toyoda and Taichii Ohno,
who recognised inefficiencies within the mass production models developed by
Henry Ford and the Ford Motor Company. Initially, Toyoda and Ohno,
recognised a large quantum of waste within the production models used in the
Ford Motor factory. Toyoda and Ohno recognised seven definable areas of waste
within the Ford production system being:
1. Overproducing.
2. Idle Time Waste.
3. Transporting/conveyance waste.
4. Processing Waste (waste in work itself).
5. Inventory waste (having unnecessary stock on hand).
6. Wasted operator motion (using unnecessary motion).
7. Producing defective goods (waste of rejected production)
These barriers essentially acted as the catalyst for the development of the
Toyota Production model and subsequently lean Production/Organization.
Stemming from these ideals, lean construction draws on similar principles to be
applied to the construction process. Identifiably, the construction process at its
most basic level (physical) is layered with inefficiency (waste) in standard
practice. The seven key barriers to efficiency align with significant recognizable
deficiencies within construction practice (physical) including:
1. Oversupply based on push system.
2. Down-time/delays.
3. Delivery scheduling delays and inadequacies.

13

4. Waste inherent in physical construction (also related to

estimation).
5. Storage on site.
6. Inadequate site planning
7. Re-work and quality
These inadequacies (among others) solely revolve around the construction
phase of a project, which renders the question as to the depth of project
deficiency. This being said, the process of development within a construction
project is highly complex and manipulated by adversarial relationships and
external stakeholders, which consequently could infer that deficiency at a
physical level of a project is merely a symptom of a lack of up-stream
collaboration and management control. This is where lean construction can hold
real value in terms of innovative control strategies and management of workflows
at a project level.
1.5 LEAN CONSTRUCTION TECHNIQUE
1.5.1 Last Planner System
The Lean Construction Institute has developed a tool specifically
for applying lean to project management. It is called the Last Planner
System. The last planner in construction is the field supervisor who
assigns work to the crews. LPS was described as outperforming traditional
project management methods by:
Reducing variability common in construction so that work flows
from one completed task to another

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Completing a look-ahead plani.e., making work ready to be

performed so that crews can finish a task without interruption,
rework, or remobilization
Performing the weekly work plani.e., holding weekly
coordinating meetings where last planners (supervisors) make
commitments to each other in support of the schedule
Managing the project by monitoring the plans completion rate
rather than the progress compared to schedule (effort). This creates
a learning process by investigating plan failures.
The LPS consists of developing and using several key plans along with a
weekly meeting and constraints measurement. The Master Schedule is common to
all major construction projects. The LPS breaks the master schedule into phased
schedules. The team of trades and management, which is responsible for the work
of that phase, develops each phase schedule. The master schedule shows how the
phases of the project come together and when. The master schedule does not
show the way work will be done within each phase; this is the role of a phase
schedule. The phase schedule identifies the major activities and the rules for
release of work to move from one activity to the next. The phase schedule sets the
sequence and timing of activities in finer detail than the master schedule.
Activities developed in the phase schedule drop into the look-ahead plan when
they are six weeks from happening. In look-ahead planning, these activities are
magnified into greater detail (i.e., tasks). Each task is screened using a checklist
to ensure that all requirements are made ready so that the task can be performed.
A typical lookahead plan focuses on when the activity is to be done and leaves the
make-ready work to each supervisor.
The last planner, usually the foreman, develops a weekly work plan by
selecting from the look-ahead plan those tasks that are ready to be done and are

15

critical in the schedule. The key is to plan only work that is ready, regardless of
when it should be performed. This is like pulling the cord on Toyotas assembly
line. In essence, the foreman says, Stop, we will not do the work that is not ready
to be done. Typically, construction work is driven by schedule, not task
readiness; project managers drive the subcontractors to start work that isnt ready.
This usually causes the crew to spend additional time returning later to finish the
task. This wastes time and resources. The weekly work plan is the foremans
commitment plan, and because its made up of tasks ready to be done and
committed to by the foreman, it has a much higher likelihood of being completed
within that week. After each weeks work, the last planner identifies any
constraints that kept him or her from doing the work as planned. These
constraints are analyzed in a weekly coordination meeting, and action is taken to
prevent future occurrences. Part of this weekly learning cycle is measuring the
percentage of work completed. Phased planning takes place several times,
depending on the complexity of the building project. The look-ahead and weekly
work plan, as well as the constraints analysis, are done weekly and represent
current best knowledge of the jobs progress. The LPS provides the necessary
tools for planning and controlling projects. In LPS, planning is what needs to be
done and how it will be done; control is about making it happen. The LPS helps
shield the crews from the variability common to construction and keeps them
focused on installation.
1.5.2 5S
Masaaki Imai says, If one is not doing 5S, one is not doing lean.
In construction, 5S: Sort. Grunau implemented the first S by separating
the material and tools found in the yard into two groups: using and not

16

using. Any material or tool that fell into the second group was disposed of
in the most economical way. The items in the using group were set in
order by identifying a specific home for each item.
Sort- Grunau implemented the first S by separating the material
and tools found
in the yard into two groups: using and not using. Any material or tool that
fell into the second group was disposed of in the most economical way.
Set in order- The items in the using group were set in order by
identifying a specific home for each item. These locations were
visually marked.
Shine- sweep or shine was done to keep the area clean and return
used tools or equipment to the designated locations.
Standardize- Next the team looked at ways to standardize the work
area.
Sustain- The last S is self-discipline (or sustain). Here the team
looked at ways to maintain the gain it had made in the yard. has
been applied in the shop with great success. After applying 5S, one
manager reported, It was like night and day to see the difference.
1.5.3 KANBAN
A basic Kanban (signboard or billboard- is a concept related to
Lean and just-in-time (JIT) production) -approach has been used in
construction, both in the field and shop, to signal the need to refill
consumables. When one bin of bolts or screws is empty, the second bin
replaces it. The empty bin becomes a signal to refill it by placing it in a
designated location. In the bottom of the bin is a card that has the bolt type,
part number, quantity to be ordered, and the suppliers contact information.

17

In the article, Building Quality at Veridian Homes in the October 2006

issue of Quality Progress, author Denis Leonard writes about kaizen
(waste

reduction)

events

that

have

been

used

successfully

in

construction.Veridian Homes, headquartered in Madison, Wisconsin, uses

what it calls kaizen redline events to review all of its home plans. This
helped Veridian develop plans that are more constructible. The company
has 50 different plans, and involving the people who design and build
these models has led to major improvements. In these kaizen redline
events, the team examines every part of the design, looking for ways to
simplify, reduce duplicate efforts, and standardize the installation work.
The event consists of two parts. First, a team of representatives from
design, construction, and customer service reviews a specific plan. This
includes the key subcontractors. Then, the team presents its findings and
concerns regarding that plan to all design, construction, management, and
customer-service people in a 90-minute monthly meeting. Usually three
plans are reviewed per meeting. After each presentation, they discuss key
issues and identify opportunities for improvement (OFI). Other data
regarding customer complaints and defects are also brought to the meeting
for analysis. Many times an issue that surfaced in one plan is identified as
common to all plans. They assign OFI teams to resolve the issues.
According to Leonard, Viridians quality-improvement efforts have
accomplished the following:
Model-homes-sold cycle time reduced from 32 to 15 days
Drafting time per model reduced by more than one hour
Estimating time per home reduced by 32 percent

18

Material variance (i.e., difference between ordered and used, possibly

due to damage on site) reduced by 20 percent for lumber, 24 percent for
siding, and 30 percent for trim
Paperwork processing reduced by 208 hours per year
Person hours reduced by 200 per year through escrow and warranty
process improvements
Reduced inspection (and inspection costs) by 50 percent while reducing
defects by more than 50 percent
1.5.4 VALUE-STREAM MAPPING
Some construction companies are using value-stream mapping
(VSM) to improve how they deliver the design and the project, according
to Peter Dumont, P. E., of Lean Engineering, in a presentation he made to
the Lean Project Delivery Workshop on April 11, 2007. The Boldt Co., a
construction-services contractor headquartered in Appleton, Wisconsin,
used VSM to reduce accounts payable from 87 days to 67 days. Tracer
Industries Canada Ltd., based in Edmonton, Alberta, specializes in
providing turnkey management systems for industrial and commercial
projects. The company applied VSM and decreased total engineering
design time from 20 days to 1.2 days. Direct labor cost per drawing has
decreased and is generating a $1.3 million annual increase in earnings
before interest and taxes.
1.5.5 VISUAL INSPECTION
Visual inspection shows the uneven nature of the construction and
leads to the application of visual tools for material, work and information

19

flow, etc. Identification of materials can accelerate repetitive processes and

diminishes the risk of selecting wrong product. Progress charts and
schedules can implement the dedication to the completion of tasks.
Information and technology can also improve the communication between
decision maker and executer, and can accelerate the process as well.
1.5.7 SIX SIGMA:
Tomkins (1997) defines Six Sigma to be a program aimed at the
near elimination of defects from every product, process and transaction.
Harry (1998) defines Six Sigma to be a strategic initiative to boost
profitability, increase market share and improve customer satisfaction
through statistical tools that can lead to breakthrough quantum gains in
quality. Six Sigma was launched by Motorola in 1987. As a result of
consulting experiences with Six Sigma in Korea, the author (Park et. al.,
1999) believes that Six Sigma is a new strategic paradigm of management
innovation for company survival in this 21st century, which implies three
things: statistical measurement, management strategy and quality culture.
It tells us how good our products, services and processes really are through
statistical measurement of quality level. It is a new management strategy
under leadership of top-level management to create quality innovation and
total customer satisfaction. It is also a quality culture. It provides a means
of doing things right the first time and to work smarter by using data
information. It also provides an atmosphere for solving many CTQ
(critical-to-quality) problems through team efforts. CTQ could be a critical
process/product result characteristic to quality, or a critical reason to
quality characteristic.

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1.6 PRINCIPLE OF LEAN CONSTRUCTION

Customers Value
Value is what the customer wants and only what the customer
wants. This requires a precise understanding of the specific needs of the
customer. It is said that up to 95% of process activities are non - value
adding. This is probably true, depending on your definition of value adding
vs. supporting and waste in a system.
Understanding Value Strea
The value stream are those activities that, when done correctly and
in the right order, produce the product or service that the customer values.
A lean organization traces and manages all the activities in the
organization that deliver value wherever they are and whichever
department they are in. Activities can be:
In whole or part unnecessary and wasteful (and therefore, should be
eliminated).
Supporting the value-adding activities (which should be reduced as far
as possible).
Customer value-adding (which should be continuously improved).
Improvement of Flow
In a lean organization work should flow steadily and without
interruption from one value adding or supporting activity to the next. This
is contrasted with the batching of work where, for instance a week's
expenses claims are collected for a manager to authorize in one go. Where
it is suitable, flow significantly speeds the processing and every effort
should be made to eliminate obstacles and bottlenecks that prevent flow.
Establish Pull
The system should react to customer demand, in other words,
customers pull the work through the system. In non-lean organizations

21

work is pushed though the system at the convenience of the operators and
so you produce outputs that are not required. Most services react to
customer demand and so pull the work through the system.
Seek Perfection
As the first four principles are implemented you should get to
understand the system ever better and from this understanding you should
generate ideas for more improvement. A lean system becomes yet leaner
and faster and waste is ever easier to identify and eliminate. A perfect
process delivers just the right amount of value to the customer.
1.7 APPLYING LEAN CONCEPT TO CONSTRUCTION
The following diagram shows the 4 important spheres of construction, that
is four areas of work in Construction Phase:

Client
Information
Procurement
Site Construction

22

Client

Site
Constructio
n

Informatio
n

Procureme
nt

These are continuous over time and totally different in nature and output
performance. They are also general areas of activity: the actual process varies
widely in practice, which in itself a huge source of confusion and
misunderstanding. The client dominates the first sphere in any project, being both
customers for the final product but also the first source of information about what
the product needs to be. The relationship continues as the project progresses in a
series of exchanges until the client is able to take possession of their building or
engineering structure. How well this is accomplished is critical to the success of
any project. The next sphere is about the generation of Information. It begins with
exchange of information between sides and Clients needs like:
Client- Main Contractor- Engineer-Supplier or vice versa
So these all leads on to the design process, which moves through a number of
repetitions and begins to involve members of the Supply Chain who give their
technical and logistic skill. Parallel to, integrated with and dependent on the
design
processes are the Cost-Estimating and Program-Planning process.

23

Client
Procurement
Site
Construction
Information

Procurement comes next, connecting those people and companies who will
actually supply the materials, components, people and plant to perform the
project. This, like everything else in Construction, is not a straightforward set of
sequential activities. Various suppliers are often required to contribute to the
Technical Design for the structure and will be engaged early on in the project.
The Lean Principles can only be applied fully and effectively in construction by
focusing on improving the whole process. This means all parties have to be
committed, involved and precisely work to overcome obstacles and faults that
may arise from traditional contractual arrangements.
1.8 SOFTWARES USED
Quantum XL
Minitab
SPC XL
SIGMA XL
Data Lyzer spectrum
Quality Window by Busitech
SDI Tools
1.9 BENEFITS
1.

Using fewer materials and having less waste can greatly reduce all around
costs. Although the philosophy of lean construction is focused on overall
reduction, not just for profit, utilizing this methodology has shown to
increase the bottom line.

24

2.

Construction time can greatly be reduced by increased planning and

strategic vision.

3.

Fewer accidents and a higher rate of safety through increased worker focus
and understanding.

4.

Increased schedule reliability and predictability.

5.

Improved overall results due to increased communication and fewer

workers.

6.

Decreased stress for workers and management due to fewer workers.

7.

Increased productivity all around due to a higher rate of planning.

8.

Increased profits and turnovers, with increased customer satisfaction.

9.

Increased worker accountability.

10.

Increased job satisfaction resulting in more performance commitment.

1.10 DRAWBACKS
1. In order for this method of construction to be effective, all areas of
management, along with the workers, have to be in accordance with the
plan. If there is a break in the chain, the lean methodology cannot work.
2. Getting everyone onboard with a new production method isnt easy, and
some people may be ambivalent about change.

25

3. In order for successful implementation, management officials must be able

to guide employees directly and efficiently. In essence, the lean method of
operation is derived by how well a management official can work with his
employees more so than with the standard procedure, and personality
clashes, as well as other issues may arise.
4. Training and educating employees in the lean method takes time and
dedication, and as expressed earlier, some workers may not like or deal
well with change.
5. Staying on course with a new system of operation can be difficult for some
managers, and some may grow frustrated.
6. Cohesive teamwork is essential for lean production. Each worker has to be
well versed in his position or a breakdown will occur as all workers rely on
one another.
7. Training employees with a new system can take some time, and this could
decrease the overall time on a project or design.
8. Management has to be astute to all production issues as a breakdown in the
system can easily occur. Staying alert to the change in operations can be
hard for all employees.
9. Suppliers and distributors have to be notified of the change in production,
and this could cause problems.
10. A temporary decrease in employee morale might be noticed due to the
change in policy.

26

1.11 HOW LEAN CONSTRUCTION IS DIFFERENT FROM OTHER

CONSTRUCTION METHODS
A project managed under the standardized view of construction versus that
managed using the lean philosophy is greatly different. From the beginning of the
project to the end goal, every area is drastically changed. One of the biggest
differences is derived from the strategic planning of the lean philosophy. Lean
construction forces all parties to have a clear set of goals, benchmarks and
objectives for the end process. Using the lean philosophy, the whole idea is to
maximize the performance at every level for the customer. This includes
employees, distributors and all managing parties. All of these groups are forced to
work cohesively together and stresses production control throughout the entire
project. Every unit of the project works together like a well-oiled machine,
meaning that if one piece is loose, everything falls apart. Current construction
models utilize the mass production mindset. Meaning that every job is allocated
to just one group with little or no interaction. The lean focus causes all parties to
work as one, thus maximizing time and allows more efficient planning and
implantation. The lack of predictability is the main problem in standard
construction procedure. Unpredictability results in lost time, waste and stress. The
lean philosophy is centered around predictability and flow, thus eliminating most
negative aspects.

27

CHAPTER 2
LITERATURE REVIEW
1. Implementation of lean construction techniques for minimizing the risks
effect on project construction time
Usama Hamed Issa; Alexandria Engineering Journal (2013) 52, 697704
The construction projects involve various risk factors which have
various impacts on time objective that may lead to time-overrun. This study
suggests and applies a new technique for minimizing risk factors effect on time
using lean construction principles. The lean construction is implemented in this
study using the last planner system through execution of an industrial project in
Egypt. Evaluating the effect of using the new tool is described in terms of two
measurements: Percent Expected Time-overrun (PET) and Percent Plan
Completed (PPC). The most important risk factors are identified and assessed,
while PET is quantified at the project start and during the project execution using
a model for time-overrun quantification. The results showed that total project

28

time is reduced by 15.57% due to decreasing PET values, while PPC values
improved. This is due to minimizing and mitigating the effect of most of the risk
factors in this project due to implementing lean construction techniques. The
results proved that the quantification model is suitable for evaluating the effect of
using lean construction techniques. In addition, the results showed that average
value of PET due to factors affected by lean techniques represents 67% from PET
values due to all minimized risk factors.
2. Site Implementation and Assessment of Lean Construction Techniques
O. Salem, J. Solomon, A. Genaidy, and M. Luegring; Lean Construction
Journal 2005 Vol 2 # 2 October 2005
The goal of this paper is to test the effectiveness of some lean
construction tools, in particular, those tools that can be applied in medium size
construction firms. Due to the success of the lean production system in
manufacturing, the construction industry has adapted lean techniques to eliminate
waste and increase profit. A field study was conducted to evaluate the
effectiveness of some lean construction techniques including last planner,
increased visualization, daily huddle meetings, first run studies, the 5s process,
and fail safe for quality. The data collection methods included direct observations,
interviews, questionnaires, and documentary analysis. The effectiveness of the
lean construction tools was evaluated through the lean implementation
measurement standard and performance criteria. It was found that last planner,
increased visualization, daily huddle meetings, and first run studies achieved
more effective outcomes than expected. However, the results of implementation
of 5s process and fail safe for quality did not meet the expectations of the tool
champions and the research team. It was found that there is need for behavioral
changes and training for effective use of lean tools. Most of the lean construction

29

tools selected for the project are either ready to use, or are recommended with
some modifications.
3. Applying lean thinking in construction and performance improvement
Remon Fayek Aziz, Sherif Mohamed Hafez; Alexandria Engineering Journal
(2013) 52, 679695
The productivity of the construction industry worldwide has been
declining over the past 40 years. One approach for improving the situation is
using lean construction. Lean construction results from the application of a new
form of production management to construction. Essential features of lean
construction include a clear set of objectives for the delivery process, aimed at
maximizing performance for the customer at the project level, concurrent design,
construction, and the application of project control throughout the life cycle of the
project from design to delivery. An increasing number of construction academics
and professionals have been storming the ramparts of conventional construction
management in an effort to deliver better value to owners while making real
profits. As a result, lean-based tools have emerged and have been successfully
applied to simple and complex construction projects. In general, lean construction
projects are easier to manage, safer, completed sooner, and cost less and are of
better quality. Significant research remains to complete the translation to
construction of lean thinking in Egypt. This research will discuss principles,
methods, and implementation phases of lean construction showing the waste in
construction and how it could be minimized. The Last Planner System technique,
which is an important application of the lean construction concepts and
methodologies and is more prevalent, proved that it could enhance the
construction management practices in various aspects. Also, it is intended to

30

develop methodology for process evaluation and define areas for improvement
based on lean approach principles.
4. Lean six sigma principal in construction: a literature review related to
abstract
SUNIL V. DESALE , DR. S. V. DEODHAR Department of Civil Engg,
SSVPS B S Deore College of Engineering, Dhule , India, Department of Civil
Engineering, , SVITS Indore (M.P),India; ISSN: 0975 6744| NOV 12 TO
OCT 13 | Volume 2, Issue 2
The critical objective of construction industries nowadays is to
complete a project within a stipulated time and cost through process
standardization, minimization of waste, and organizational potential and efficient
use of resources by using recent techniques such as Lean six sigma. Lean six
sigma in construction was found to be rigorously studies most of the literature has
focused on the application of Lean six sigma applied in the variety of fields hence
the main aim of this paper is to conduct rigorous review and to identify the
potential aspects of their application in Indian construction management. Most of
the construction companies face poor client satisfaction due to non completion the
work as per the required standard and specification. For the industry to increase
its profit margin and remain competitive in the market, completion of a project as
stipulated is crucial. In this paper efforts are made to establish complete analysis
of 51 papers with data base search from major publishers including Science
Direct, Emerald and Google Scholars. This paper reviews the published literature
related to six sigma or lean six sigma in construction from start to date. The
statistical calculation consist of the response from the year 2003 up to 2012 they
include number of publications in the respective years and after a pilot study a
sample of 51 Papers were considered and statics is done .Six sigma refers to the
minimization of variation through proper work flow maintenance and it leads to

31

performance improvement of contractors in terms of cost and quality. It ensures

that construction processes become leaner and cost competitive. The paper
includes the results from different perspectives such as implementation of Lean
six sigma, Focus Area, Focus Country and Year Wise Publications. The review of
literature Related to Abstract found that six sigma or Lean Six Sigma in
construction industry is mostly implemented in quality and process improvement
area. Research on LSS is on elementary stage. Lean Six sigma framework in
construction organizations is needed. This paper discusses different articles that
have been published in this field and present a literature review Related to
Abstract.
5.Lean procurement: the use of lean construction techniques in project value
enhancement
Ogunbiyi, O., Oladapo, Adebayo Akanbi and Goulding, Jack Steven;
Lean construction is characterised by a set of clear objectives
in project delivery involving the concurrent design of products and processes, and
the application of production control throughout the project life cycle to maximise
value for money to customers. The successful delivery of construction projects
requires the effective use of project management techniques such as risk and
value management to achieve the optimum performance of a constructed facility
over time. However, it has been argued that lean construction came about as a
result of the failure of traditional project management to provide an integrated
project delivery process in which design, construction, operation, and
maintenance are considered as a whole with an understanding of how to enhance
value delivery to clients, stakeholders (including occupants), and society in
general. This paper explores in depth the lean construction techniques that
support environmentally sustainable benefits and value enhancement in the design

32

and construction processes (including supply chain management). It also explains

how the implementation of lean techniques in construction project delivery and
procurement strategy (including partnering relationships between contractors,
consultants and manufacturers) delivers a high level of benefits and value.
6.Impact of six sigma on construction performance
Kashiwagi, D, Chong, N, Costilla, M, McMenimen, F and Egbu, C (2004)
Khosrowshahi, F (Ed.), 20th Annual ARCOM Conference, 1-3 September
2004, Heriot Watt University. Association of Researchers in Construction
Management, Vol. 1, 13-23
This research proposes that to implement a continuous
improvement type process in construction the following requirements must be
met: create a performance based environment which differentiates performance
and value, run a performance based process where the risk is minimized by high
performance contractors instead of the clients professional representative, and
use a non-technical performance information process. Six Sigma is a rigorous
process to minimize risk and deviation. The core of Six Sigma is DMAIC, define,
measure, analyse, improve, and control. The result of Six Sigma will be an
increased efficiency, improvement in performance, and the control of
performance problems (not on time, on budget, and meeting quality expectations).
Efforts in the construction industry to apply concepts of Six Sigma have been
inconsequential due to a price based environment. This paper defines a
performance or value based environment which processes such as Six Sigma can
be implemented successfully. This is currently being tested in the United States
by the Federal Aviation Administrations (FAA). The implementation of Six
Sigma concepts has been difficult due to the institutionalization of technical
management, control, and inspection concepts which are not performance based.

33

7. A review of lean concept and its application to sustainable construction in

the UK
Oyedolapo Ekundayo Ogunbiyi*, Adebayo Akanbi oladapo and Jack Steven
Goulding; International Journal of Sustainable Construction Engineering &
Technology (ISSN: 2180-3242) Vol 4, No 2, 2013
The UK Government has recognised the importance of the
construction industry in achieving the overall goals of sustainable development.
Therefore the Government has put several policies and strategies in place to
achieve a more sustainable construction. Sustainable construction is considered as
the application of sustainable practices and sustainable development principles to
the activities of the construction sector. Lean construction is a new production
philosophy which has the potential of bringing innovative changes in the
construction industry. The Lean principles focus on the minimisation of both
material and process wastes which in turn contribute to sustainable construction
in terms of energy consumption and improvement in health and safety etc. This
study aims at exploring the concept of sustainable construction and examines how
the lean approach can impact on the sustainability practices within the
construction industry. The study uses literature review to achieve the stated aim.
The findings revealed that the application of lean construction principle, tools and
methods have direct contributions to the attainment of sustainable practices
within the construction industry. However, the study postulates that the better
understanding of lean concept, proper implementation and integration of lean and
sustainability concepts are required for lean construction to contribute to
sustainable construction.
8. Sustainability through Lean Construction Approach: A literature review

34

Mohd Arif Marhani, Aini Jaapara, Nor Azmi Ahmad Baria, Mardhiah
Zawawib; Procedia - Social and Behavioral Sciences 101 ( 2013 ) 90 99
Lean construction (LC) is excellent in managing the construction process
and achieving the by eliminating waste. The objectives of this paper are to
provide with fundamental knowledge of LC and highlight the barriers of its
implementation. The literature reviews has been conducted through relevant
databases. It was found that there is a need for more holistic approaches to be
adopted in LC implementation such as health and safety, and six sigma. A
systematic training and research are also found vital to provide good interaction
and collaboration with the stakeholders. LC is also capable to enhance
sustainability in construction thus the quality of life for future Malaysian
construction industry.
9. Lean Construction: From Theory to Implementation
O. Salem, M.ASCE; J. Solomon; A. Genaidy; and I. Minkarah, M.ASCE;
This article compares the techniques developed for lean
construction with those developed for lean manufacturing. Lean manufacturing
and lean construction techniques share many common elements despite the
obvious differences in their assembly environments and processes. Manufacturing
plants and construction sites are different in many ways that might explain why
lean production theories and practices do not fully fit the construction industry.
Though many lean construction tools and elements are still in an embryonic state,
lean construction techniques are gaining popularity because they can affect the
bottom line of projects. Additionally, this paper presents a study of a construction
project in which specific lean construction elements were tested. Each technique
was evaluated in terms of its impact on the performance of the project. Based on

35

the findings of the study, a new lean assessment tool is proposed to quantify the
results of lean implementations. The assessment tool evaluates six lean
construction elements: last planner, increased visualization, huddle meetings,
first-run studies, five Ss, and fail safe for quality. This paper provides a simple
and comprehensive approach that is transferable to any construction project.
10. An Application of Lean and Six Sigma Principle for Constructional
Process Improvement in Indian Organizations
Research Scholar, Department of Civil Engineering, SSVPS B S Deore
College of Engineering, Dhule, India Professor, Dean Civil Engineering
faculty , SVITS Indore, (MP).India; Volume : 3 | Issue : 4 | April 2013 | ISSN
- 2249-555X
Keywords India has seen tremendous growth in construction and
infrastructure sector in last decade. To achieve a double digit growth in
construction sector, a continuous effort should be taken. Such a growth
opportunity can be leveraged for competitiveness by adapting the principals and
various tools of learn and six sigma management for min or zero wastage. Delays
were rampant in construction earlier and now costs are often too high for quality
that is given. With increasing competition from domestic and international
construction forms innovation has raised up for the implementations, adaptation
of Lean Concepts Seems to have higher potential for the construction industry.
This paper highlights the real issues contrasting construction organizations and
explores the potential of Lean and Six Sigma construction concepts in
construction industry in India. Lean Construction and Six Sigma or related
concepts have been successful acceptance in the Automobile sector in many
countries. But still the same has yet to be used in Construction rigorously. This
paper will focus on this emerging concept called Lean Construction based on

36

the basic Principles of management and special tools and techniques to achieve
those desired goals of better productivity and better profit margins.

CHAPTER 3
METHODOLOGY

37

LITERATURE SURVEY
DEFINING THE OBJECTIVES
DATA COLLECTION
IDENTIFICATION OF RISKS
ANALYZING THE RISKS
IMPLEMENTATION OF LEAN CONSTRUCTION TECHNIQUE
MONITORING THE RESULTS
CONCLUSION

3.1 SIX SIGMA

Six sigma is an organization-wide strategy that develops employees and
gives them the tools and capabilities to solve complex problems in a rapid
fashion. Employees now have the capabilities to improve overall performance
through their step-by-step improvements, always from a customer and financial
perspective. Six sigma helps employees use statistical and measurement tools to
deliver breakthrough results throughout the organization. Six sigma requires full
participation, from senior management to the factory floor workers. Each assumes
a specific role in the six sigma process. At the top of the pecking order we find
the Champions. These individuals are responsible for coordinating the business
goals and objectives, which are set towards achieving the six sigma standard

38

within the organization. They are responsible for providing the logistics and
informational resources that will be needed for the successful completion of the
project. They also select the project and identify the scope of the projects to be
worked on. They identify the team that should work on the project, and work to
remove barriers that may block the success of the project. Most companies go on
to use a classification methodology similar to the one created by Motorola to
describe the abilities of their six sigma user. For example, classifications like
Green Belt (part-time user) or Black Belt (full-time user) are common. Each level
requires an improved mastery of the six sigma tools and skill set, as well as the
roles and responsibilities of the individual in the improvement process. The
objective is to create a methodology for defining the skill set of the users. The
Master Black Belt is the guru of the six sigma methodology. This individual
works as a coach, leader, and teacher for the other individuals on the team. The
Black Belt is the change agent for the six sigma process. This individual is a high
performer and has a dedicated position that is responsible for six sigma projects.
The Green Belt is a specially trained member of the team and usually sits on a
function-specific part of the organization. The Green Belt works under the Black
Belt on specific aspects of the six sigma projects. The Yellow Belt represents the
remainder of the organization, which has been trained on some of the basic skills.
These individuals are working their way towards becoming knowledgeable in the
six sigma process. Each of the successful six sigma users have customized the
process to fit their own culture and methodology. In order to accomplish this, it is
important to identify the key business goals and objectives of the organization,
and then to adapt the six sigma methodology and philosophy to fit this goal set.
We need to develop an action plan identifying how we are going to focus the six
sigma tool so as to focus on the big returns and avoid any waste in investment.

39

Hence, it is useful to identify the areas where six sigma performs well. These
include:

Transformation of the level of customer awareness and expectation

throughout all the employees of the organization.

Improved customer-supplier relationship.

Drives operational process improvements with savings in cost,

improvements in service and productivity, and increased returns.

Drives information flow improvements.

Drives a deeper, organization wide understanding of the organization's

operation.

Improved sales force effectiveness.

Introduces all employees to new tools that will enhance performance.

Provides a vehicle for the development of a training program.

3.1.2 METHODS
Six sigma is not an all or nothing venture. Six sigma is a collection of tools
and you pick selectively from those tools in order to gain the desired result. It is
also not an increase in the level of organization bureaucracy. In fact, if use
properly, it will reduce the level of bureaucracy within the organization. Six
Sigma projects follow two methodologies inspired by Demings Plan-Do-CheckAct Cycle;
DMAIC is used for projects aimed at improving an existing
business process. DMAIC is pronounced as duh-may-ick
DMADV is used for projects aimed at creating new product or
process designs. DMADV is pronounced as duh-mad-vee.
DMAIC:
D- DEFINE THE SYSTEM

40

M-MEASURE THE KEY ASPECTS

A-ANALYSE THE DATA
I-IMPROVE OR OPTIMIZE THE CURRENT PROCESS
C-CONTROL THE FUTURE STATE PROCESS
DMADV:
D-DEFINE DESIGN GOALS
M-MEASURE AND IDENTIFY CTQs
A-ANALYSE TO DEVELP AND DESIGN ALTERNATIVES
D-DESIGN AN INPROVED ALTERNATIVE
V-VERIFY THE DESIGN
3.1.3 STEPS
STEP 1: LITERATURE SURVEY
STEP 2: DEFINING THE OBJECTIVES
STEP 3: DATA COLLECTION
STEP 4: IDENTIFICATION OF RISKS
STEP 5: ANALYSING THE RISKS
STEP 6: IMPLEMENTING LEAN CONSTRUCTION TECHNIQUES
1. TAKT TIME:
Takt time, derived from the German word Taktzeit, translated best as meter, is the
average unit production time needed to meet customer demand. For example the
customer wants to buy 10 units per week, the average time to build an unit must
be 4 hours (or less) if the units are built during a 40 hour work week. Industrial
manufacturing lines must have production cycle times at least as short as the takt
time so that production can meet the customer demand. This production 'cycle
time' should be less than or equal to Takt time. For example, in automobile
manufacturing, cars are assembled on a line, at a certain cycle time, ideally being
moved on to the next station within the takt time so as to neither over or under

41

produce. The cycle time to complete work on each station is often less than the
takt time in order to ensure that the customer is never short of product. Although
theoretically you want to match cycle time to takt time to avoid building
inventories and over-sizing equipment, the reality is that demand is dynamic and
never precisely known and also process disruptions such as unplanned downtime
can occur. Thus, in practice, it is generally understood that cycle time needs to be
slightly less than takt time.

DEFINITION:

Assuming a product is made one unit at a time at a constant rate during the net
available work time, the takt time is the amount of time that must elapse between
two consecutive unit completions in order to meet the demand.
Takt time can be first determined with the formula:
Where
T = Takt time, e.g. [work time between two consecutive units]
Ta = Net time available to work, e.g. [work time per period]
D = Demand (customer demand), e.g. [units required per period]
Net available time is the amount of time available for work to be done. This
excludes break times and any expected stoppage time (for example scheduled
maintenance, team briefings, etc.).

IMPLEMENTATION:

Takt time is calculated on virtually every task in a business environment. It is

used in manufacturing (casting of parts, drilling holes or preparing a workplace
for another task), control tasks (testing of parts or adjusting machinery) or in
administration (answering standard inquiries or call center operation). It is,
however, most common in production lines that move a product along a line of
stations that each perform a set of predefined tasks.

42

Once a takt system is implemented there are a number of benefits:

The product moves along a line, so bottlenecks (stations that need more

time than planned) are easily identified when the product does not move on in
time.

Correspondingly, stations that don't operate reliably (suffer frequent

breakdown, etc.) are easily identified.

The takt leaves only a certain amount of time to perform the actual value

added work. Therefore there is a strong motivation to get rid of all non valueadding tasks (like machine set-up, gathering of tools, transporting products, etc.)

Workers and machines perform sets of similar tasks, so they don't have to

adapt to new processes every day, increasing their productivity.

There is no place in the takt system for removal of a product from the

assembly line at any point before completion, so opportunities for shrink and
damage in transit are minimized.
Downsides of takt time organization include:

When customer demand rises so much that takt time has to come down,

quite a few tasks have to be either reorganized to take even less time to fit into the
shorter takt time, or they have to be split up between two stations (which means
another station has to be squeezed into the line and workers have to adapt to the
new setup)

When one station in the line breaks down for whatever reason the whole

line comes to a grinding halt, unless there are buffer capacities for preceding
stations to get rid of their products and following stations to feed from. A built-in
buffer of three to five percent downtime allows needed adjustments or recovery
from failures.[1]

Short takt time can put considerable stress on the "moving parts" of a

production system or subsystem. In automated systems/subsystems, increased

43

mechanical stress increases the likelihood of breakdown, and in non-automated

systems/subsystems, personnel face both increased physical stress, which
increases the risk of repetitive motion (also "stress or "strain") injury, and
intensified emotional stress, and lowered motivation, sometimes to the point of
increased absenteeism.

Tasks have to be leveled to make sure tasks don't bulk in front of certain

stations due to peaks in workload. This decreases the flexibility of the system as a
whole.
2.VALUE STREAM MAPPING
Value stream mapping is a lean-management method for analyzing the current
state and designing a future state for the series of events that take a product or
service from its beginning through to the customer. At Toyota, it is known as
"material and information flow mapping". It can be applied to nearly any value
chain.

USING THE METHOD:

1.

Planning and preparation. Identify the target product family or service.

Create a charter, define the problem, set the goals and objectives, and select the
mapping team. Socialize the charter with the leadership team.
2.

Draw while on the shop floor a current state value stream map, which

shows the current steps, delays, and information flows required to deliver the
target product or service. This may be a production flow (raw materials to
consumer) or a design flow (concept to launch). There are 'standard'symbols for
representing supply chain entities.
3.

Assess the current state value stream map in terms of creating flow by

eliminating waste.
4.

Draw a future state value stream map.

44

5.

Work toward the future state condition.

APPLICATIONS:

Value Stream Maps are usually drawn using a set of standard symbols, some of
which can be seen here. Value stream mapping has supporting methods that are
often used in Lean environments to analyze and design flows at the system level
(across multiple processes). Although value stream mapping is often associated
with manufacturing, it is also used in logistics, supply chain, service related
industries, healthcare, software development, product development, and
administrative and office processes.
In a build-to-the-standard form, Shigeo Shingo suggests that the value-adding
steps be drawn across the centre of the map and the non-value-adding steps be
represented in vertical lines at right angles to the value stream. Thus, the activities
become easily separated into the value stream, which is the focus of one type of
attention, and the 'waste' steps, another type. He calls the value stream the process
and the non-value streams the operations. The thinking here is that the non-valueadding steps are often preparatory or tidying up to the value-adding step and are
closely associated with the person or machine/workstation that executes that
value-adding step. Therefore, each vertical line is the 'story' of a person or
workstation whilst the horizontal line represents the 'story' of the product being
created. Value stream mapping is a recognised method used as part of Six Sigma
methodologies
3.NON VALUE ADDED (NVA) TIME
Non value added time is a management term loosely related to the Lean
Manufacturing movement as codified in the 1980s by a landmark MIT study of
the automobile industry, which explained lean production for the first time. No
Value Added programs can be formal or whimsical. Generally, they involved
seeking input and opinion from every level of the organization about rules,

45

processes or process elements which are said to be no value added. In one form,
the proponent of an activity accused of being NVA must defend it, or suspend it.
In a milder form, the proponent (or process owner) of an activity accused of being
NVA is simply informed that it is seen in that light. Oddly, this milder form is
often effective because in a large organization, the original reason for an activity
can be long forgotten, similar to cabooses which came into use in the 1830s, but
eventually had no useful purpose and became NVA. Some claim that this NVA is
a jibe at Net Value Added accounting methods, which were held in low esteem by
some Lean advocates, and high esteem by others.
Non Value Added activities in a process includes any step that;
i.

Customers are not willing to pay for

ii.

Do not change the product or service

iii.

Contain errors, defects, or omissions

iv.

Require preparation or setup

v.

Involve control or inspection involve over production special processing

and inventory or
vi.

Involve waiting and delays

4.VALUE ADDED TIME

Value Added Time activities include steps that customers are willing pay for
because they positively change the product or service in the view of the
customer.it is made up of processes that improve products. The only value added
time process in the cycle time example is the process time. This is the amount of
time it takes to actually produce the product . obviously, production time is value
added time because it creates a product from raw materials. The product is
improved at the end of the process time.

46

Most manufactures try to eliminate all unnecessary production costs and wasted
time. This makes their production time leaner and also makes customers happier.
Companies can provide price if they run production operations smoothly and
efficiency. One way managers measures the efficiency of the production time is
by looking at the time.
5. VALUE ANALYSIS
STEP 7: MONITORING THE RESULTS
STEP 8: CONCLUSION

CHAPTER 4
CONCLUSION

47

REFERENCE

1. Implementation of lean construction techniques for minimizing the risks

effect on project construction time :Usama Hamed Issa; Alexandria
Engineering Journal (2013) 52, 697704
2. An Application of Lean and Six Sigma Principle for Constructional
Process Improvement in Indian Organizations

Research Scholar,

48

Department of Civil Engineering, SSVPS B S Deore College of

Engineering, Dhule, India Professor, Dean Civil Engineering faculty ,
SVITS Indore, (MP).India; Volume : 3 | Issue : 4 | April 2013 | ISSN 2249-555X
3. Lean Construction: From Theory to Implementation: O. Salem, M.ASCE;
J. Solomon; A. Genaidy; and I. Minkarah, M.ASCE
4. Sustainability through Lean Construction Approach: A literature review:
Mohammad Arif Marhani, Aini Jaapara, Nor Azmi Ahmad Baria,
Mardhiah Zawawib; Procedia - Social and Behavioral Sciences 101
( 2013 ) 90 99
5. A review of lean concept and its application to sustainable construction in
the UK :Oyedolapo Ekundayo Ogunbiyi*, Adebayo Akanbi oladapo and
Jack Steven Goulding; International Journal of Sustainable Construction
Engineering & Technology (ISSN: 2180-3242) Vol 4, No 2, 2013
6. Impact of six sigma on construction performance :Kashiwagi, D, Chong,
N, Costilla, M, McMenimen, F and Egbu, C (2004) Khosrowshahi, F
(Ed.), 20th Annual ARCOM Conference, 1-3 September 2004, Heriot Watt
University. Association of Researchers in Construction Management, Vol.
1, 13-23
7. Lean procurement: the use of lean construction techniques in project value
enhancement :Ogunbiyi, O., Oladapo, Adebayo Akanbi and Goulding, Jack
Steven
8. Lean six sigma principal in construction: a literature review related to
abstract :SUNIL V. DESALE , DR. S. V. DEODHAR Department of Civil
Engg, SSVPS B S Deore College of Engineering, Dhule , India,
Department of Civil Engineering, , SVITS Indore (M.P),India; ISSN: 0975
6744| NOV 12 TO OCT 13 | Volume 2, Issue 2

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9. Site Implementation and Assessment of Lean Construction Techniques : O.

Salem, J. Solomon, A. Genaidy, and M. Luegring; Lean Construction
Journal 2005 Vol 2 # 2 October 2005
10. Applying lean thinking in construction and performance improvement:
Remon Fayek Aziz, Sherif Mohamed Hafez; Alexandria Engineering
Journal (2013) 52, 679695