Course: Strategic Construction Management

Lecture 5: New concepts of CM -1. Lean Construction

By: Dagnachew A. (PhD)

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 Contents of the presentation

• New concepts of CM

• History of lean

• what is lean construction?

• Significance/contribution of lean construction

• Traditional vs Lean Construction

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 Brainstorming?

Have you heard/know about various new concepts of Construction?

Do you know any CI that has applied LC in Ethiopia?

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 New concepts of Construction Management

lean construction,

process mapping,

benchmarking,

Supply Chain Management, &

Strategic Partnering
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 The History of LEAN

Lean is about managing & improving a process to profitably deliver what the customer needs

Henry Ford-
Father of Mass
Production

• Standardization • “Flow “ Production

• Best Practice • C.A.N.D.O
• Deployment (Clearing Up,
Arranging, Neatness,
Discipline, Ongoing Empire State Building
improvement) • 14.5 Months
• Predictable Flow Used
• Integrated Team
• Location Based Schedule
• Analytics
LEAN Journey
1900 1905 1910 1915 1920 1925 1930 1935
1940 1945
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 The History of LEAN
Taiichi Ohno —
Father of the
Toyota U.S. Auto Industry Awoken To
Production “LEAN Manufacturing”
System (TPS)

•Just-In-Time (JIT)
•Continuous Improvement
•Respect for People
•7 Types of Waste Eliyahu Goldratt - Kaoru Ishikawa - Joseph Juran
Total Quality
- Edwards Deming Management (TQM)
•5S Program Theory of Constraints (TOC)

1950 1955 1960 1965 1970 1975 1980 1985

1990 1990

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 The History of LEAN

Integrated Project Delivery (IPD)

Lean Construction
Sutter’s 5 Big Ideas
Institute
Last Planner System
TM
Construction Teams Start to use
with great success.

Glenn Greg
Ballard & Howell
AGC Lean
Construction
Forum
Created

1997 2000 2002 2003 2004 2005 2006

2008 2010 2011

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 Waste in the Construction Industry?

8. Under-utilized
Talent
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According to a study conducted at Michigan University (Prof. Tariq Abdel Hamid) wastages in the CI is
expected 40 – 60%. ………………………………………………………………………………
Therefore, the solution is Lean Construction.
Lean construction is a “way to design production systems to minimize waste of materials, time, & effort in order to
generate the maximum possible amount of value” (Koskela et al. 2002)
Optimizing Efforts, Minimizing Costs and Time, Reducing Waste, Creating Value What Best Can be done, Should be done.

Examples of Waste in the CI

● Poor Design
● Poor Constructability
Constructability is the optimum use of construction knowledge & experience of construction
managers & design engineers in the conceptual planning, engineering, procurement, &
field operations phases to minimize redesign & rework in construction & achieve the overall
project objectives. ● Inefficiency in Machinery working

● Poor Layout ● Wastages of Materials

● Excessive Staff
● Overrun in Time
● Poor Procurement
● Overrun in Cost
● Lack of Flow of Work
● Lack of Co-ordination ● Adversarial Relationships
● Poor Planning ● Disputes
● Inefficient processes
● Arbitration & so on……
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 What is Lean construction?
• Lean construction is a philosophy Lean manufacturing
based on the concepts of lean Lean manufacturing was initially
manufacturing. pioneered & developed by the
• It is about managing and improving
large Japanese car manufacturers.
the construction process to profitably
deliver what the customer needs.
• Because it is a philosophy, lean It has been implemented by a number of
construction can be pursued through Japanese, American and European
a number of different approaches.
manufacturers with considerable
• This fact sheet outlines the elements
success, & has been widely
of lean manufacturing and suggests
how these might be adapted to deliver applied outside the automotive
lean construction in practice. industry.

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• Lean is about designing and operating the right process and having the right

systems, resources and measures to deliver things right first time. Essential

to this is the elimination of waste - activities and processes that absorb

resources but create no value.

• Waste can include mistakes, working out of sequence, redundant activity and

movement, delayed or premature inputs, and products or services that don’t

meet customer needs.

• The primary focus is on moving closer and closer to providing a product that

customers really want, by understanding the process, identifying the waste

within it, and eliminating it step by step.

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 What is Lean Construction?

Architect/Engineer General

Vendors
Subcontractors

• Lean construction is a set principles and tools to facilitate:

planning and control,
maximize value and
minimize waste throughout the construction process.

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 Characteristics of lean 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 of product & process, and

the application of production control throughout the life of

the product from design to delivery.
 The Lean Principles
Eliminate waste
Precisely specify value from the perspective of the ultimate
customer
Clearly identify the process that delivers what the customer values
(the value stream) and eliminate all non value adding steps
Make the remaining value adding steps flow without interruption by
managing the interfaces between different steps
Let the customer pull – don’t make anything until it is needed,
then make it quickly
Pursue perfection by continuous improvement

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The Lean Construction Principles The 5 S’s
1. Client First / Customer Focus Sort Separate the necessary from
2. Continuous Improvement &
Innovation the unnecessary
3. Respect for People Simplify Neatly arrange and
4. Cooperative Relationships identify items
5. Implement the 5 S’s
Sweep Routine inspections to keep
6. Continuous feedback & learning
workplace in perfect order
Standardize Document methods
and formalize agreements
Self Discipline Hold team
accountable to maintain agreed
upon standards
 Lean Construction
The four construction works activities
moving
waiting
processing
inspection
The five CI identifying characteristics
o uniqueness
o onsite productions
o temporary
o multi organizational
o regulatory intervention
 Lean Construction
The 11 Flow related Principles:
Reduce Non Value Adding Activities
Increase Output Value: Define Customer
for each stage, enhance transparency and
continuous improvement
Reduce Variability (Place, People,
Materials, etc): Standardization
Reduce Cycle Time: Processing +
Inspecting + Waiting + Moving Times,
Minimizing Number of Components and
Steps
Increase Output Flexibility
Increase Process Transparency or visibility
of flows (5s Process, Monitoring, reducing
interdependence, etc)
Process Completeness (Minimize
Segmented flow control and Sub
Optimization within and beyond)
Continuous Improvement (internal,
incremental and iterative)
Flow Versus Conversion Improvement
Benchmarking
Flow is smooth & uninterrupted
movement of converting raw
materials & information into
the product under moving,
inspection & waiting
processes by people &/or
machines.
Conversion is the Production
aspect;
Moving, Waiting & Inspection are
the flow aspects
representing the non value
adding activities that
expends extra cost and time.
Overall efficiency is dependent on
technology, skill, motivation,
& others of the Conversion
Process as well as the wastes
in the flow.
 Lean Construction
The Seven Lean construction The Four Lean Practices:
Preconditions / Constraints: Eliminating Waste / Waste Reduction
(Material, Time and Efforts: Non Value
1. design
Adding) Unevenness and
2. components & materials Overburdening
3. workers Cultural Transformation
Standardization
4. equipment
Visual Management
5. space The Three Types of CI activities:
6. connecting works Value Adding
7. external conditions Non Value Adding but Required
(Material Positioning, In Process
Inspection and Temporary Works}
Non Value Adding (Transport,
Inventory, Motion, Waiting,
Overproduction, Over processing and
Defects)
 Lean Construction (LC)
The Four Principles / Culture of LC: The four client focus concepts of LC:
1. value / value stream mapping
client first / customer focus
2. flow / process focus
continuous improvement &
3. pull
innovation
4. system perspective / continuous
respect for people
improvement
cooperative relationships
Value is product or service that:
Value Stream is to identify all steps to create • increases productivity,
and deliver the product:
Mapping current state, • minimize waste,
Identifying alternative routes to
maximize performance, • decrease cost and time,
Eliminating all unnecessary Non
Value Adding Activities, • improve quality
improve quality
generate value • generate value
 Lean Construction
The Three Lean Construction The six LC barriers:
Stages:
People (culture, team work & change
o Stage 1: technical and operational
resistance)
waste minimization
Management (commitment,
o Stage 2: eliminating adversarial
communication, customer focus + process
relationships & enhancing
based performance management system,
cooperative relationships +
teamwork among workforce & supply chain)

supply chain factors Technology (skill and application)

o Stage 3: structural change of Resources (scarcity, capacity )

industry or company or project Process (lean thinking, implementation)
governance (ICT, manufacturing &
Others (regulatory, fragmentation)
assembly, etc)
 Summary
Traditional vs Lean Construction

Decisions are made sequentially Downstream players are involved in

by specialists and ‘thrown over the upstream decisions
wall’
Product and process are designed
Product design is completed, then together
process design begins
All product life cycle stages are
Not all product life cycle stages considered in design
are considered in design
Activities are performed at the last
Activities are performed as soon responsible moment
as possible

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 Traditional vs Lean Construction

Separate organizations link together Systematic efforts are made to

through the market, and take what the
market offers
Participants build up large inventories
to protect their own interests
reduce supply chain lead times
Buffers are sized and located to
perform their function of absorbing
system variability

Stakeholder interests are not aligned

Stakeholder interests are aligned

Learning occurs sporadically

Learning is incorporated into project,
(= irregularly/unpredictably)
firm, and supply chain management

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 Traditional vs Lean Construction

Traditional Lean
Leadership Dictates direction Facilitates collaborative direction

Planning Partitioned by disciplines and Collaborative, project based and

is linear. Predictive and seeks to integrate efforts to eliminate
generally fixed, setting negative iterations. Learns as project
parameters for management evolves

Controls are inflexible,

Develops a “network of
Management autocratic -processes are
commitments” to implement plan,
fixed and measures are
evolves intelligence, measures are
isolated and historical
integrated and proactive

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Thank you so much for your attention