Lean Construction

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Lean Construction is a translation and 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.

The term "Lean Construction" was coined by the International Group for Lean Construction in its first meeting in 1993. The rise of Lean Construction marked the beginnings of a scientific revolution, as described by Thomas Kuhn (1970). In the Structure of Scientific Revolutions (Kuhn 1970), Kuhn observed that during the pursuit of scientific revolutions, "novelty emerges only with difficulty, manifested by resistance, against a background provided by expectation." Kuhn attributed the reluctance and resistance of scientists to new paradigms to the overriding desire to bring the existing theory (paradigm) and observed reality into closer agreement.

1 Historical Development
- 1.1 A New Paradigm
2 What is Lean Construction?
- 2.1 Lean Construction Definitions Potpourri
3 LC Teaching and Research
4 References
5 Further reading
6 External links
- 6.1 Who is doing it?

[edit] Historical Development

The seminal work of Lauri Koskela in 1992 challenged the Construction Management community to consider the inadequacies of the time-cost-quality tradeoff paradigm. Another paradigm-breaking anomaly was that observed by Ballard (1994), Ballard and Howell (1994a and 1994b), Howell and Ballard (1994a and 1994b) and Howell (1998). Analysis of project plan failures were indicated that “normally only about 50% of the tasks on weekly work plans are completed by the end of the plan week” and that most of the problems were possible to mitigate by contractors through an “active management of variability, starting with the structuring of the project (temporary production system) and continuing through its operation and improvement.” (Ballard and Howell 2003).

Evidence through research and observations was indicating that the conceptual models of Construction Management and the tools it utilizes (work breakdown structure, critical path method, and earned value management) fail to deliver on the mantra of ‘on-time, at budget, and at desired quality’ (Abdelhamid 2004). With recurring negative experiences on projects, evidenced by endemic quality problems and rising litigation, it was becoming evident that the governing principles of construction management needed to be revisited. In fact, the 6th annual survey of construction owners by CMAA (2006) revealed that "The biggest cost impacting construction today is that of inefficiencies built into the way projects are run and managed – not costs of raw materials like steel and concrete, or the cost of labor."

[edit] A New Paradigm

Koskela (2000) argued that the mismatch between the conceptual models and observed reality underscored the lack of robustness in the existing constructs and signaled the need for a theory of production in construction. Koskela then used the ideal production system embodied in the Toyota Production System to develop a more overarching production management paradigm for project-based production systems where production is conceptualized in three complementary ways, namely, as a Transformation (T), as a Flow(F), and as Value generation(V). Koskela and Howell (2002) have also presented a comprehensive review of the shortcomings existing management theory – specifically as related to the planning, execution, and control paradigms – in project-based production systems. Both conceptualizations provide a solid intellectual foundation of Lean Construction as evident from both research and practice.

Recognizing that construction sites reflect prototypical behavior of complex and chaotic systems, especially in the flow of both material and information on and off site, Bertelsen (2003a and 2003b) suggested that construction should be modeled using chaos and complex systems theory. Bertelsen (2003b) specifically argues that construction could and should be understood in three complimentary ways, namely, as a project-based production process, as an industry that provides autonomous agents, and as a social system. With more developments in this line of thinking, it is very likely that the Lean Construction governing paradigm will change to it. And so, the process will keep on repeating!

[edit] What is Lean Construction?

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, Constructors, Facility Managers, End-user) at early stages of the project. This goes beyond the contractual arrangement of design/build or constructability reviews where constructors, and sometime facility managers, merely react to designs instead of informing and influencing the design.

Lean Construction supplements traditional construction management approaches with: (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.

In the UK, a major R&D project was launched in 1997 to adapt the Toyota Production System for use in the construction sector. The resulting supply chain management toolset was tested and refined on two pilot projects and the comprehensive and detailed process-based toolset was published in 2000 as the 'Building Down Barriers Handbook of Supply Chain Management-The Essentials'.

The UK Building Down Barriers R&D project demonstrated very clearly that lean thinking would only deliver major performance improvements if the construction sector learned from the extensive experience of other business sectors. Lean thinking must become the way that all the firms in the design and construction supply chain co-operate with each other at a strategic level that over-arches individual projects. In the aerospace sector, these long-term supply-side relationships are called a 'Virtual Company', in other business sectors thay are called an 'Extended Lean Enterprise'.

The UK 'Building Down Barriers Handbook of Supply Chain Management-The Essentials' states that: 'The commercial core of supply chain management is setting up long-term relationships based on improving the value of what the supply chain delivers, improving qality and reducing underlying costs through taking out waste and inefficiency. This is the opposite of 'business as usual' in the construction sector, where people do things on project after project in the same old inefficient ways, forcing each other to give up profits and overhead recovery in order to deliver at what seems the market price. What results is a fight over who keeps any of the meagre margins that result from each project, or attempts to recoup 'negative margins' through 'claims', The last thing that receives time or energy in this desperate, project-by-project gladiatorial battle for survival is consideration of how to rteduce underlying costs or improve quality'.

Lean Construction is identical to Lean Production in spirit, it is different in how it was conceived as well how it is practiced. The priority for all construction work should be to: 1) keep the work flowing so that the crews are always productive installing product; 2) reduce inventory of material and tools and 3) reduce costs (Sowards 2004). While Lean Construction’s main tool for improvement in construction is the Last Planner System, other Lean tools already proven in manufacturing have been adaptabed to the construction industry with equal success. These include: 5S, Kanban, Kaizen events, quick setup/changeover, Poka Yoke, Visual Control and Five Whys (Mastroianni and Abdelhamid 2003, Salem et al 2005). Other Lean tools may prove useful once tested in construction.

[edit] Lean Construction Definitions Potpourri

While Lean Construction has the overarching goal of continuously improving the delivery process of capital facilities, a myriad of definitions have been articulated by different organizations and advocates. A sampling of these definitions follows:

"Lean Construction is a way of thinking about and doing work; A way to be in the world as it is, at once curious and action oriented, resolute and dissatisfied" (Greg Howell, co-founder of LCI).

LCI has a definition that starts with "Lean Construction is a production management-based approach to project delivery -- a new way to design and build capital facilities. 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."

"Lean construction is defined by six goals of construction best practice, namely (Cain 2004):
- 1. Finished building will deliver maximum functionality, which includes delighted end users.
- 2. End Users will benefit from the lowest optimim cost of ownership.
- 3. Ineficiency and waste in the use of labour and materials will be eliminated.
- 4. Specialist suppliers will be involved in design from the outset to achieve integration and buildability.
- 5. Design and construction will be through a single point of contact for the most effective co-ordination and clarity of responsibility.
- 6. Current performance and improvement achievements will be established by measurement.

Lean Construction is about " The right people talking about the right things at the right time - David Long - Sutter Health"

IGLC states that: "Our goal [that of Lean Construction] is to better meet customer demands and dramatically improve the AEC process as well as product. To achieve this, we are developing new principles and methods for product development and production management specifically tailored to the AEC industry, but akin to those defining lean production that proved to be so successful in manufacturing." (http://www.iglc.net)

Iris Tommelein: "Lean construction embraces new principles and methods for product development and production management specifically tailored to the AEC industry. It advocates the simultaneous consideration of product and process development, using concurrent engineering tools among others." (http://www.ce.berkeley.edu/~tommelein/lean.htm)

"Lean Construction is an approach to leadership, organization and management that balances stability with change in a process of continuous reflection and learning at the individual, project and company level. The best hope we have learn to work effectively in complex circumstances to satisfy multiple contending demands" (Greg Howell, co-founder of LCI).

The Lean Construction Network states that "LEAN construction is a way of creating wealth and eliminating waste across the industry." (after Womack & Jones). It is accomplished through continuous flow and pull and leads to Egan's seven outputs being met simultaneously without trade-off." (see http://www.leancon-net.com/definitionlc.htm).

"Lean Construction is a philosophy and related practices resting on explicit conceptual foundations connecting the physical aspects of production with the ability of human beings to form and carryout actions together. While lean is scalable and its power to reduce waste and add value increases with the extent of its reach, the approach can be applied locally" (Greg Howell,co-founder of LCI).

Walbridge Aldinger, a large US-based construction company, defines LC through its features and requirements. They state that LC is a process that: " Reduces Waste; Saves Money and Reduces Cost; Creates Higher Quality; Creates Flexible Delivery Systems to Match Owner Requirements; Creates Stable Schedules, Reliable Material Deliveries and Reliable Workforce ; Promotes Employee Participation, Which Leads to Satisfaction; Improves Customer Satisfaction; Requires a Cultural Change." (http://www.walbridge.com/lean/index.htm)

In 2005, in the context of a competition for the design of affordable homes, English Partnerships, a UK Government Agency, defined lean construction as:
- … the continuous process of eliminating waste, meeting or exceeding all customer requirements, focusing on the entire value stream and the pursuit of perfection in the execution of a constructed project. Lean construction philosophy requires a continuous improvement focused on a value stream which responds directly to the needs of the customer. Improvement is, in part, accomplished by eliminating waste in the process. Lean construction can therefore apply right across design, procurement and production processes. (Design for Manufacture Competition (2005) Q&A1 answer 51 at http://www.designformanufacture.info/page.aspx?pointerid=307FE1A776AD4E8D8AC46662DF7FDA56#q51 10 Mar 07)

"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 interaction between project and production management(Abdelhamid 2007)."

Lean Construction is "concerned with the pursuit of concurrent improvements in all dimensions of constructing facilities: design, construction, activation, maintenance, salvaging, and recycling"(Abdelhamid 2007).

A very important value of Lean Implementation is the state of being "Born Lean". This is the state of planning in the development phase of design and manufacturing. This is critical for the success and timliness to the market if the lean philosophy is from the onset (J.Lars - Principal IE 2007)

[edit] LC Teaching and Research

- The Lean Construction Institute conducts research and industry outreach activities (www.leanconstruction.org)

- The International Group for Lean Construction (IGLC) holds an annual conference (www.iglc.net)

- The Lean Construction Journal (www.leanconstructionjournal.org) launched October 2004.

- A number of universities around the world teach and conduct research on Lean Construction.

[edit] References

Koskela, L., Howell, G., Ballard, G., and Tommelein, I. (2002). “The Foundations of Lean Construction.” Design and Construction: Building in Value, R. Best, and G. de Valence, eds., Butterworth-Heinemann, Elsevier, Oxford, UK.

Abdelhamid (2007). Lean Construction Principles. Graduate class offering at Michigan State University.

Ballard, Glenn (1994). “The Last Planner.” Northern California Construction Institute Spring Conference, Monterey, CA, April, 1994.

Ballard, G. and Howell, G. (1994a). “Implementing Lean Construction: Stabilizing Work Flow.” Proceedings of the 2nd Annual Meeting of the International Group for Lean Construction, Santiago, Chile.

Ballard, G. and Howell, G. (1994b). “Implementing Lean Construction: Improving Performance Behind the Shield.” Proceedings of the 2nd Annual Meeting of the International Group for Lean Construction, Santiago, Chile.

Ballard, G. and Howell, G. (1998). “Shielding Production: Essential Step in Production Control”. Journal of Construction Engineering and Project Management, Vol. 124, No. 1, pp. 11 - 17.

Ballard, G., and Howell, G. A. (2003). “Competing Construction Management Paradigms.” Proceedings of the 2003 ASCE Construction Research Congress, 19-21 March 2003, Honolulu, Hawaii.

Cain, C. T. (2003). ISBN 0-415-28965-3. 'Building Down Barriers-A Guide to Construction Best Practice'. A simple guidebook explaining supply chain management and lean thinking, primarily aimed at the demand-side client.

Cain, C.T. (2004). ISBN 1-4051-1086-4. 'Profitable Partnering for Lean Construction'. A detailed action-learning guidebook that explains how to set up the extended lean enterprises that are the essential first step towards lean construction. The book provides case history evidence that the approach advocated can deliver savings of over 30% and explains what clients need to do differently to enable lean construction to flourish.

Cain, C. T. (2004). 'Performance Measurement for Construction Profitability'. ISBN 1-4051-1462-2. A detailed action-learning guidebook aimed at supply-side construction firms (including trades contractors) explaining why performance measurement is the key to lean construction.

Koskela, L. (1992). “Application of the New Production Philosophy to Construction”. Technical Report # 72, Center for Integrated Facility Engineering, Department of Civil Engineering, Stanford University, CA. www.leanconstruction.org/pdf/Koskela-TR72.pdf 10 mar 07

Koskela, L. (2000). An exploration towards a production theory and its application to construction, VVT Technical Research Centre of Finland.

Koskela, L. and Howell, G., (2002). “The Underlying Theory of Project Management is Obsolete.” Proceedings of the PMI Research Conference, 2002, Pg. 293-302.

Kuhn, T. S. (1970). The Structure of Scientific Revolutions. University of Chicago Press.

Bertelsen, S. (2003a). “Complexity – Construction in a New Perspective”. Proceedings of the 11th Annual Meeting of the International Group for Lean Construction, Blacksburg, Virginia, USA.

Bertelsen, S. (2003b). “Construction as a Complex System”, Proceedings of the 11th Annual Meeting of the International Group for Lean Construction, Blacksburg, Virginia.

Bertselen, S. and Koskela, L. (2002). “Managing The Three Aspects Of Production In Construction.” Proceedings of the 10th Conference of the International Group for Lean Construction, Gramado, Brazil, August 6-8.

Abdelhamid, T., S. (2004). “The Self-Destruction and Renewal of LEAN CONSTRUCTION Theory: A Prediction From Boyd’s Theory”. Proceedings of the 12th Annual Conference of the International Group for Lean Construction, 03-06 August 2004, Helsingør, Denmark.

Construction Management Association of America (2006). “Sixth Annual Survey of Owners.” FMI, Management Consulting, http://cmaanet.org/user_images/sixth_owners_survey.pdf (visited 6/11/06).

Sowards, Dennis, “5S’s that would make any CEO Happy,” Contractor Magazine, May 2004.

Mastroianni, R. and Abdelhamid, T. S (2003). “The Challenge: The Impetus For Change To Lean Project Delivery”. Proceedings of the 11th Annual Conference for Lean Construction, 22-24 July 2003, Blacksburg, Virginia, 610-621.

Salem, O., Solomon, J., Genaidy, A., and Luegring, M. (2005). “Site Implementation and Assessment of Lean Construction Techniques." Lean Construction Journal, 2(2), pp. 1-21.