Project Management

& Engineering Cases

CEE 3348
LEAN Construction
Management
Lesson 9

Lecturer: Kevin McGuire P. Eng., M. Eng., PMP

11/25/2022
What is LEAN construction?
 Definition of Lean:
- A production approach that preserves Value
with less Waste
- ''To produce the right product at the right time in the
right quantity for the customer and to produce
exactly what you need and nothing more”
Taiichi Otlno. creator of the Toyota Production System

 Lean Construction:
- A design and execution methodology to
minimize Waste of materials and effort in order
to generate the maximum Value
Kaizen
Value is defined by the Customer
The Seven Types of Waste
1. Defects/Rework – scrap and fixing errors

2. Overproduction – making more just in case

3. Inventory/Queue – excessive work in process inventory

4. Over-Processing – beyond what the customer needs

5. Motion – unnecessary and awkward movements

6. Transport – unnecessary material movement

7. Waiting – delay for an upstream activity to complete

Waste is often difficult to SEE
because…
 People appear to be busy

 We don't stop to look at the

causes

 There is comfort in legacy

systems and old ways
Implementation of LEAN Tools in
Construction
Integrated Project Delivery
 Integrated Project Delivery (IPD) is a new approach to
the design and construction of buildings.
- The approach is based on an
integrated working relationship
that shares risk, and reward, and
the exchange of data, which
results in lower cost and lower
risk, shorter design and
construction schedules, and
overall improvement in efficiency
and productivity of the project.
Project Effort and Impact
Integrated Project Delivery (IPD)
The convergence of new technology, such as BMI
(Building Information Modeling) and process
improvement help to facilitate an environment where
owners, architects, engineers, and contractors can
collaborate more effectively earlier in the design and
construction process to achieve these goals.
Building Information Modeling (BIM)
“Building Information Modeling (BIM) is an
integrated process for exploring a project’s key
physical and functional characteristics digitally
before it’s built, helping to deliver projects
faster and more economically, while
minimizing environmental impact.”
Paul Sullivan, Senior Public Relations Manager at Autodesk

https://www.youtube.com/watch?v=_beeFtrgQJE
https://www.youtube.com/watch?v=Do2Vm22OCm4
Building Information Modeling
 Improved visualization
 Improved productivity due to easy retrieval of
information
 Increased coordination of construction documents
 Embedding and linking of vital information such as
vendors for specific materials, location of details and
quantities required for estimation and tendering
 Increase speed of delivery
 Reduced cost
Prefabrication
Prefabrication is the assembly of
building units or components at a
location removed from the job
site. During preconstruction,
Prefabrication
Prefabrication can come in many forms. Here are
some examples of building elements that can be
prefabricated:
- Mechanical/Elecrical/Plumbing (MEP) system
mmmiassemblies, such as ceiling racks
- Bathroom pods
- Health care headwall assemblies
Just in Time (JIT)
 Just in Time is a planning system for construction
that optimizes resources to constantly deliver
just what is needed, just where it is needed, in jut
the right amount that is needed, exactly when it
is needed. Just in Time is particularly important
to a complex project with challenges such as a
very tight sight, adjacent facilities, and congested
pedestrian and vehicular traffic situations.
The Last Planner System TM
The Last Planner System TM
The Last Planner System TM
Top Risks Facing the Industry
Owner Perspective:
1. Availability of Qualified Contractors
2. Shortage of Internal Resources
3. Managing Risk
4. Rising Cost of Construction
5. Environmental Matters
6. Availability of Qualified Vendors
7. Delivery on Time and Budget
8. Regulatory Matters
9. Technology
10. Transferring risk
11. Entering New Markets
Top Risks Facing the Industry
Contractor Perspective:
1. Shortage of Qualified resources
2. Managing risk
3. Transferring Risk
4. Securing forward Workload
5. Entering New Markets
6. Gaining Competitive Edge
7. Succession Planning
8. Bonding Capacity
9. Reducing Overhead
10. Industrial relations
Construction Risks
Project Risk Management
 Project Risk Management is the process, policies, and
procedures, implemented by the project manager, to identify,
analyze, manage, and respond to potential risk.
- The focus of Project Risk Management is to ensure that
mmmminor, day-to-day project level risks are being
effectively mmmmanaged on an ongoing basis.
- It is also the responsibility of the project team to ensure
mmmthat more significant risks are quickly escalated to the
mmminstitutional level.
- While minor risks can be managed and reported as part of
mmmthe daily project management process, an major risks
mmmshould be before a project Risk Committee
Primary Elements of the Risk
Management Process
Primary Elements of the Risk
Management Process
The Primary Elements of the risk management process, at the
project level typically include the following elements:

 Plan – deciding how to approach and plan the risk

management activities for a project. The overall plan should
include delineation of risk management

 Identify – determining which risks might affect the project

and documenting their characteristics. Risk identification is
an iterative process and provides a formal opportunity for
project members to identify and capture information related
to potential risks and opportunity on the project.
Primary elements of the Risk
Management Process
 Analyze – Performing both a qualitative and a quantitative
analysis of risk and conditions inherent to the project and
analyzing in terms of:

Qualitative Analysis – Quantitative Analysis –

Prioritizing risks in terms
of their impact on the
project. Qualitative
analysis typically include
prioritizing risks in terms
of their critically and
potential impact on the
project.
Measuring the
probability that the risk
will impact the project
and quantify the degree
of impact that it will have
on project cost,
schedule, quality, or
objectives.
Primary elements of the Risk
Management Process
Primary elements of the Risk
Management Process