Commentary: Lean Construction Increasing Its Industry Profile
Lean construction is the application of lean thinking, principles and tools to the lifecycle of capital construction. Although the International Group for Lean Construction (ILGC) coined the term at its first meeting in 1993, widespread implementation of lean techniques is still not common in the industry. However, according to the findings of the report, this trend is changing.
The need for industry reform relates to three main areas:
1. Productivity in the U.S. construction industry has stayed level or declined since 1964.
2. Building owners are looking for increased plan predictability and price stability in the way capital projects are delivered.
3. As more owner organizations practice lean in their core businesses, they are writing into their requests for proposal requirements that lean practices extend into their capital construction projects.
Evolution of the Process
Lean construction evolved from the lean methodology used in various industries, including manufacturing, health care, service and retail. Lean’s aim is to deliver maximum value and quality to a customer, exactly how and when they want it. It relies on a foundation of continuous improvement and respect for people to eliminate waste due to variation; overburdening or stressing the people, processes or system; and the wastes commonly associated with transportation, waiting, overproduction, defects, inventory, motion, excess processing and ineffectively utilizing people.
During a construction project, change orders, schedule delays and rework are some indicators of these wastes. Lean principles are customer value, value-stream analysis, flow, pull, perfection and everyday improvement.
Founded in 1997 by Glenn Ballard and Greg Howell, the Lean Construction Institute exists to reform the way the industry delivers capital projects. Lean project delivery views projects holistically, rather through than the traditional transactional method.
A LCI 2012 report says: “Applied to construction, lean changes the way work is done throughout the delivery process. Lean construction extends from the objectives of a lean production system—maximize value and minimize waste—to specific techniques and applies them in a new project delivery process. As a result:
• The facility and its delivery process are designed together to better reveal and support customer purposes. Positive iteration within the process is supported and negative iteration reduced.
• Work is structured throughout the process to maximize value and to reduce waste at the project delivery level.
• Efforts to manage and improve performance are aimed at improving total project performance because it is more important than reducing the cost or increasing the speed of any activity.
• “Control” is redefined from “monitoring results” to “making things happen.” The performance of the planning and control systems are measured and improved.
The reliable release of work between specialists in design, supply and assembly assures value is delivered to the customer and waste is reduced. Lean construction is particularly useful on complex,
uncertain and quick projects. It challenges the belief that there must always be a tradeoff between time, cost and quality.”
Lean Processes
Lean project delivery (LPD) is a collaborative process where the owners, architects, contractors and key contributors collaborate throughout the lifecycle to deliver effectively a capital project– from design concept through decommissioning. LPD projects apply key tools like target value design and the Last Planner System, as well as traditional lean tools—and enablers like integrated forms of agreement and building information modeling to improve project delivery.
The Last Planner System is a production control method designed to integrate “should-can-will-did” planning and activity delivery of a project. Its aim is to deliver predictable workflow and rapid learning. LPS is commitment based and collaborative. It empowers the “last planner”—the person who makes the jobs assignments to direct workers—to make delivery commitments based on the actual status of a job, rather than theoretical plans. With stability in the work plan performance, the team can implement other lean tools to eliminate waste and increase value.
Target value design with rapid synchronized cost modeling is a key tool to the ILPD process and overcomes the hurdle posed by the old maxim that “Most projects with poorly conceived initial budgets never properly recover.”
Based on interviews and research, acceptance of lean in the U.S. construction industry is still not widespread, but it is gaining momentum in some sectors and companies. While no measure currently exists gauging the level of industry implementation, two main areas successfully using lean are construction of health-care facilities and projects where the building owner’s organization is on a lean journey.
Additionally, building owners who are seeing some of the early project successes and who want better stability and value for their investment, are willing to try lean construction because the current system is still not delivering the results or value that they want.
Projects using LPD show:
• Better schedule performance
• Better budget performance
• Improved safety performance
• Ability to incorporate more customer value in the projects
• Higher collaboration.
By understanding the targets and rapidly evaluating design options, owners and AEC professionals can make better decisions to improve value delivery and performance of projects. Investment of design and cost management resources, including downstream suppliers, fosters collaboration and innovation leading to better designs, value and project delivery.
To overcome resistance and increase understanding of lean project delivery, LCI and the Associated General Contractors of America are developing training to expand LPD implementation.
Natalie J. Sayer is the lead author of “Lean For Dummies,” published by Wiley, 2007 and 2012. Her work unites people, process and culture to bring about productive change.
Julian Anderson is president of the Rider Levett Bucknall North American practice and a member of Rider Levett Bucknall’s Global Board.
