Indian Institute of Technology-Madras

CE6050 - Lean Construction Concepts, Tools & Practices

Lean Construction – Summary of Introduction: Assignment 01

- Devendran R (CE18M034) Group 4

Introduction to Project Management:

A project is a set of tasks and activities undertaken to produce a unique product. In the construction
industry, a project can vary from a small temporary structure built for a few months usage to a megastructure
such as a dam which is built to last for centuries. Any project can be successfully completed in the allocated
time and budget only if each of the sub activities involved are properly planned, designed, scheduled, executed
and monitored throughout the project period. Proper management of all the sub tasks involved in a project
paves way to the increasing demand for effective Project Management. Project management aims at effective
utilization of cost, time and resources whilst assuring desired quality and ensuring environmental and
occupational health and safety. A set of guidelines and standards have been set up to ensure that all the above
mentioned criteria are met such as, IS0 9001 (Quality Management), IS 21500 (Guidance on Project
Management), OHSAS 18001 (Occupational Health and Safety Assessment Series), IS 14001 (Environmental
Management) and PMBOK Guide by PMI. Effective project management can ensure the satisfaction of all
the players involved in the project such as owners, clients, architects, consultants and contractors.
Need for Process oriented approach in the Construction Industry:
The key difference between the construction industry and the manufacturing industry is that the nature
of the product produced in the construction industry is always unique. The construction industry is project
oriented whereas the manufacturing industry is process oriented. Process management is much simpler than
that of project management as the methods and procedures involved in a process are standardized to a great
extent. Although the construction industry cannot completely follow a process oriented approach majority of
sub task involved in a project can be standardized into a process by application of a variety of Lean concepts,
tools and practices.
Lean construction concepts, tools and practices:
Lean construction or lean project delivery aims at making the construction industry shift towards a
process oriented approach rather than a project oriented approach. It involves understanding the project
requirements and working on efficient methods that add value to client. Identifying and removing processes
that do not add value to the client but lead to wastage of cost, time or any other resource is a key objective of
lean project delivery. In today’s construction scenario eliminating bottlenecks in a project by means of a root
cause analysis to ensure smooth running of the project without any delay is the need of the hour. It is absolutely
essential to understand the construction practices currently followed, measure and analyse means of
improvement on a micro, macro and master level of the projects.
EPC or Turnkey project delivery method:
The conventional type of project delivery in the country is Design Bid Build where the design and
construction of the project is done by two different parties under two different contracts. However lately there
has been a rise in the EPC or Turnkey project delivery method. EPC refers to Engineering Procurement
Construction wherein the contractor is solely responsible for the design, material procurement and
construction of the project. It is also referred to as a Turnkey project where the contractor takes up a project
from scratch and provides a completed project and as the name suggests the client has to just turn the key to
use or operate the facility.

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 Indian Institute of Technology-Madras

CE6050 - Lean Construction Concepts, Tools & Practices

Lean Construction – Summary of Introduction: Assignment 01

- Devendran R (CE18M034) Group 4

The reason for this shift in project delivery method can be attributed to that of the many advantages of
EPC contracts, namely:
Contractor is at Single point responsibility – Client need not coordinate between designers, architects
and other contractors.
Higher efficiency – Both designers and construction contractor work under the same team thus
eliminating chances of disputes.
Lower risk on Client – Contractor bears most of the risk as he holds the prime responsibility of the
project
Fast Track approach – The separate design bid and construction phases in a traditional approach can
be minimized and a lot of time can be saved if project is properly planned.
Fast track construction approach:
Completing the project as early as possible is of utmost importance to the client. The returns of the investment
on the project is solely dependent on the timely completion of the project. Clients these days do not mind
spending a little more money on the project provided that the project can be completed well ahead of schedule.
Construction primarily involves three phases namely Engineering (Design), Procurement and Construction.
The fast track construction approach aims at compressing the project timeline by overlapping the design and
construction phase, as in based on the preliminary designs and drawings the construction is executed in sites.

Engineering Engineering

Procurement Procurement

Construction Construction

Project duration Project duration

Traditional approach Fast track approach

Conventional vs Fast track construction approach
Having said that fast track approach will result in savings of cost and time, it has to be understood that
fast track approach possesses higher risk than conventional approach as any form of unrealistic planning or
faulty design will lead to huge losses in both time and money. Hence it is very evident that without proper
project management any construction approach will not be fully efficient. Thereby the Indian construction
industry should incorporate the newly evolving science of project management deep into its roots.

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