Impact Of Lean In Construction Industry Construction Essay

The execution of thin building patterns stressing the Last Planner System ( LPS ) ( Ballard and Howell, 1998 ) and waste decrease techniques in a big figure of undertakings has provided empirical grounds that is analyzed in this paper in order to sum up some of the lessons learned from the execution. The paper analysis is based on informations obtained from the writers ain execution experience and besides from instance surveies found in the Thin Construction literature ( Koskela 2000, Ballard 2000, Benardes 2001 ) . Some of the of import activities developed under this strategy are Periodic Meetings, Workshops, Plenary Sessions and Site Visits by the research workers. The undertaking sample included 39 low rise edifice undertakings, 15 high rise edifice undertakings, 11 heavy industrial undertakings and 12 light industrial buildings. This information was collected during a research undertaking carried out to develop execution schemes for Thin Construction and to mensurate the impacts of those schemes. The analysis considered execution of undertakings during a three twelvemonth period, from 2001 to 2003 ( Alarcon et al. 2002a, Calderon 2004 ) .

4.2.2 Decrease in variableness in undertakings

Improvements in per centum of planned assignments completed.

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Percentage program complete ( PPC ) of the undertakings under probe increased over the three twelvemonth period. These consequences can be attributed to a figure of grounds like: –

Learning procedure

Experience accumulated by squad

Support tools.

Top direction engagement and apprehension of the procedure

Influence of the degree of execution on undertaking PPC

In an attempt to obtain a better apprehension of the impacts of the execution degree, a sub-sample of 11 National ( Chilean ) undertakings ( N ) and 5 international undertakings ( I ) were examined in more item ( Figure 2 ) . Most undertakings in this sub-sample were constructing undertakings, except undertakings N8, N10 and N11 that were light industrial undertakings. Figure 2 shows undertakings classified into two groups, harmonizing to the degree of execution of the LPS elements present in the undertakings. The first group consisted of 10 undertakings with a basic degree of execution with accent on the hebdomadal work program and merely informal Look-ahead planning. The 2nd group included 6 undertakings that had implemented formal Look-ahead planning procedure and in one instance formal feasible backlog and acquisition procedures. The undertakings were besides ordered harmonizing to their mean PPC to ease the analysis. Figure 3 shows that, in general, undertakings with a more complete execution had a higher PPC than undertakings with basic execution.

Causes for non completion in undertakings

Initially for first twelvemonth of execution the causes for non-compliances were hapless planning and field intervention. At the terminal of 3rd twelvemonth the causes were associated with sub-contractor where this individual point accounted for 24 % of the causes. Poor planning of stuff, accounted for 10 % of cause.

Figure 2.1: Development of PPC in three twelvemonth period Figure 2.2: Impact of degree of execution On

PPC public presentation

A general decision is that causes associated with external agents increased their engagement, likely due to a better control of internal causes in the undertakings as they improved PPC. In undertakings with high PPC causes associated with the contractor ‘s ain direction become less of import in comparing with causes attributed to subcontractors. These causes increased in about 200 % during the period studied, but the per centum of contracts given to subcontractors besides increased, explicating portion of the consequence.

Figure 2.3: Development of causes for non-completion in undertakings

4.2.3 The impact of it support on PPC public presentation

The hapless usage of information generated during execution of LPS was identified as the chief barrier for a more complete execution. To interrupt execution barriers, the research squad developed a paradigm computing machine system working closely with the companies in a uninterrupted interaction with them during system design. The paradigm system, called “ Plan Control ” was tested in several undertakings These resulted in higher PPC public presentation for those undertakings that used IT support compared with undertakings without IT support.

4.2.4 Performance betterments

Performance betterments were measured quantitatively and qualitatively in a figure of companies involved in execution attempts. Figure 8 shows public presentation betterments reported by 8 different companies. These steps include different public presentation indexs such as manpower productiveness, cost factors, building velocity, agenda decreases, etc. Productivity betterments of up to 86 % have been measured in single undertakings ( Alarcon et al. , 2000 ) .

Figure 2.4: Variation of undertaking public presentation reported by 8 companies

4.2.5 Decisions

The analysis of the grounds obtained from execution of Thin Construction patterns in many undertakings analyzed in this paper demonstrates the effectivity of the proposed patterns and their multiple benefits:

aˆ? The LPS is an effectual tool to better dependability of planning in undertakings.

aˆ? Improvements in PPC are normally accompanied by a more stable and less variable public presentation of the PPC index.

aˆ? Improved PPC public presentation produce a displacement in causes for non-compliance from internal to external causes.

aˆ? IT tools can back up a more complete and standard execution of the LPS in undertakings and increase the chance to accomplish higher PPC public presentation.

aˆ? Performance betterments were observed in about all the undertakings under probe. However, public presentation measuring was a hard undertaking for the companies.

aˆ? Performance betterment impacts between 7 % to 48 % were reported by 8 companies that participated in the execution plan.

The experience and the consequences obtained have lead to the design of an execution scheme that has produced good consequences. The scheme involves development of systematic preparation and research actions, a proactive interaction with contractor upper direction and undertaking organisations, coaction among companies and a changeless hunt for new ways to better the execution procedure. Working in a collaborative attack, with different preparation actions, sharing experiences and information among the companies produces a figure of benefits: development of accomplishments for execution, development of a healthy competition among companies that are working together, fast larning from successes and failures.

4.3 CASE-2 viing building direction paradigms

4.3.1 Introduction

Logisticss direction constructs and tools presently have a great value for several concern sectors that are seeking for productiveness and fight betterment, supplying costs decrease and better client satisfaction. With that intent they are seeking to advance a better integrating between internal and external histrions who support logistics activities. This paper studies on three instance surveies undertaken as portion of a Master Research plan, which has the chief aim of look intoing how logistics constructs and tools are being applied to the Brazilian edifice building sector. As a decision, guidelines are presented in order to better logistics efficiency and effectivity in the edifice production procedure. These guidelines are based on positive and negative experiences of some building companies presented briefly in three instance surveies and on experiences of companies from other sectors of the economic system. It is discussed how logistics constructs and direction tools can be applied to constructing building in order to accomplish competitory advantage. It besides attempts to show the cogency of these constructs and tools and to place general guidelines for logistics direction betterment through instance surveies developed in three Brazilian companies.

The chief aims of a logistics system are to maximise client service degree and to minimise entire cost in its activities. In other words, the aims are to bring forth value to the client and to cut down cost in the production procedure.

4.3.2 Case surveies general presentation

Three instance surveies were conducted in order to place: ( 1 ) general troubles in logistics direction procedure ; ( 2 ) new visions, methods and tools that are being applied on edifice companies ; ( 3 ) the chance of utilizing these visions, methods and tools in edifice companies. Observations were made in internal scope of the companies, what means, it was done a diagnosing research focused in their logistics direction procedure and it was non taken into history an analysis of external influences.

Fig. 2.5 Aspects analyzed in the instance survey

The first company, which is called “ Ten ” , acts as an enterpriser and a general contractor of residential and commercial edifices in a specific territory. The production procedure rationalisation scheme used by this house is focused on the betterment of traditional constructive techniques and on the betterment of labours work conditions.

Some cardinal points for logistics efficiency betterment identified in this company are:

A· Strategic political relations for provider ‘s relationship definition ;

A· Site layout be aftering sing the different site stages ;

A· Agents functions and duties definition in site logistics activities ;

A·Duplicity riddance and speed increasing in information processing and information exchange.

The 2nd company, that is called “ Y ” , acts merely as a general contractor in “ concerted systems ” undertaking. Normally they are immense undertakings with six or more edifices with long term executing. Its production procedure rationalisation scheme can be characterized by a widely subcontracting pattern and it seeks a perpendicular decomposition of production procedure.

Some cardinal points for logistics efficiency betterment identified in this company are:

A· Logistics coordination map definition ;

A· General processs for acquisition procedure definition ;

A· Supply plans amplification ;

A· Duplicity riddance and speed increasing in information processing and information Exchange.

The 3rd company, that is called here “ Z ” , acts as an enterpriser and a general contractor of residential edifices. It has bigger grosss than the others do and all units are commercialized through direct funding with the company. To accomplish this scheme and cut down costs, company Z has besides standardized tonss of constructive solutions for their edifice undertakings and minimized the figure of stuff and constituent providers.

The chief key points for logistics efficiency betterment identified in this company are:

A· Process integrating with providers increase ;

A· Information vehicles betterment including Electronic Data Exchange ( EDI ) execution ;

A· Interference decrease among subcontractors and agents functions and duties definition in site logistics activities.

Although the three companies have different schemes and different challenges for logistics betterment, it was possible to detect that in all of them some doctrines, methods and tools for logistics direction are someway being used.

4.3.3 Logistics direction

Supply Logistics Management

Supply map is presently pointed as being responsible for production procedure holds and Michigans, because a deficiency of stuff can hinder the achievement of an activity, doing productiveness loss.But late, the “ Quality Movement ” and, in a certain manner, the diffusion of Just In Time ( JIT ) rules have been act uponing positively the supply logistics procedure.

Quality Movement has involved 100s of companies in the really different Brazilian States. It consists fundamentally on the diffusion and execution of Quality Management Systems in these houses. These systems, based on ISO 9000 series, helped provide logistics betterment, peculiarly, through a standardisation of processs, that are in fact operational tools, like: ( 1 ) specifications and purchase orders ; ( 2 ) providers choice and making ; ( 3 ) stuff quality confidence ; ( 4 ) stuffs and constituents bringings inspection ; ( 5 ) standards for divergencies solution in the relationships between the company and providers.

Merely in Time is a doctrine that can be traduced as a synchronised flow production system without stock. Large stuffs and constituents stocks ( including finished services waiting for a consecutive occupation ) normally hide jobs like: ( 1 ) non promptness in stuffs and constituents bringings ; ( 2 ) inability of the providers of making bringings in little tonss ; ( 3 ) inability in anticipating with truth the periods of activities executing ; ( 4 ) jobs in production squads be aftering and productiveness rates appropriation ; ( 5 ) deficiency of cognition of stuffs and constituents loss rates.

None of the three companies studied ( X, Y, Z ) adopt JIT systems. But most of direction patterns mentioned above are in the range of their production scheme aims in order to cut down stocks. So it is possible to place JIT doctrine influence in their current pattern. Some challenges to the development of a relationship between a company and its providers are: to set up long term and stable dealingss ; to restrict the figure of providers ; make non to alter providers often ; to set up a planetary making system ; to measure providers by entire costs ; to join forces with providers to do their merchandises more dependable, and less expensive.

Measuring the companies studied, Company Z was the lone 1 that had developed long term dealingss with providers. Ninety per centum of their providers were sole spouses in their edifice undertakings. Before a edifice undertaking construct start, all these material providers are already defined. Company X was non in the same phase but it has developed a partnership with two of its providers. Company Y had non established any partnership.

From an operational point of position, another of import facet for supply logistics direction efficiency is the production planning, which includes supply programs. production programs can be divided in three different degrees: – initial planetary program, more elaborate program and committedness program.

The instance surveies showed that this program in the 3rd degree ( commitment program ) is the one the companies have much more troubles in carry throughing. Largely because they have a civilization of utilizing be aftering methods to force production and besides because constructing production procedure involves tonss of uncertainnesss what makes this effort a small spot difficult to be successful.

Site Logistic Management

Some tools that can be used to help site logistics direction are commented here associated to “ site readying stage ” , site layout planning, managing systems surveies, “ design for production ” and checklists.

Site readying stage

It can be defined as a phase of the production procedure dedicated to preview in progress, before site activities start. The acceptance of this phase every bit good as a methodological tool to form determination procedure in the production procedure is an first-class chance for logistics be aftering and forming, particularly site logistics. In this manner, one-sided determinations made by any component of a production squad during service executing can be avoided. It besides seeks to decrease interface jobs among internal agents, because it consists of several meetings where take portion all agents in order to do determinations. This readying stage is non really common in undertakings developed by Brazilian edifice companies and in none instance surveies was possible to verify an operational tool like the described above. However, Company X was interested in developing a methodological tool based in a sequence of meetings affecting all agents. And in Company Z, the occupant applied scientist prepares an operational program in a period of one month, merely after some designs are already developed, in which he presents necessary site equipment, general site organisation and an initial site layout sheet.

Design for Production

Another helpful tool for site logistics direction is what it has been called in Brazil, designs for production. Melhado ( 1994 ) defines it as “ a group of design elements at the same time elaborated with definite merchandise design, specifying the agreement and sequence of production activities, equipment use, constructing site planning and development, and other information linked to the resources and features of a building company ” . All the companies ( X, Y and Z ) are utilizing them. Company Y, for illustration, uses formwork, divider walls and external rendition designs for production.

Checklists for Site Conditions Control

A checklist itself is a really interesting direction tool for site logistics diagnosing and control and besides to assist determination doing procedure in site layout planning. Company Z has developed a elaborate checklist for logistic control in which there are more than a 100 points monitored, related to site conditions. The chief or occupant applied scientist sporadically ( one time a month ) verifies site organisation based on this checklist.

4.3.4 Logistics information flow direction

An information system involves the definition of a manner to direct, have and enter information in an organisation. The information system is the 1 that promotes internal relationship of several subsystems of a house. An efficient information system is the 1 that is able to suitably utilize informations resources transmittal, having and recording of a house. On the other manus, an effectual information system is the 1 that is able to provide the different internal systems with right information at a right clip.

Some general rules for an information system execution are: ( 1 ) analysis of information demands ; ( 2 ) integrating of information demands ; ( 3 ) amplification of an appropriate information system design ; ( 4 ) choice of equipment and package ; ( 5 ) gradual execution with changeless rating. So before following complex computational tools it is necessary to set the information system.

4.3.5 Guidelines for logistics betterment

Confronting all challenges pointed out above to develop logistics direction and utilizing the instance surveies experiences and theoretical background, some general guidelines are proposed as follows. These guidelines are organized in three different degrees: strategic, structural, and operational. Although the companies have different production rationalisation schemes it is believed that this proposition is valid for all of them.

Strategic Level

Some strategic guidelines for logistics betterment are:

– Decision of client service degree desired, what means, desired stock degrees and acquisition petition attending clip ;

– Decision of logistics ends to be reached in short, in-between and long clip and public presentation indexs for them ;

– Decision of relationship political relations with providers, seeking supply concatenation procedure integrating and partnering.

Structural Degree

Structural degree guidelines are related to structural organisation of houses through a systemic position. Some of them are:

– Determination of agents ‘ duties in logistics procedure, particularly the logistics coordination responsible. Here it is suggested two ways to construction logistics within a company ‘s organisation. He houses can choose to develop a new administrative map that will be responsible to organize these activities or can make a “ logistic pole ” , which consists of a corporate forum affecting multiple agents for logistics coordination.

– Definition of an information system design and a mechanism for information exchange among histrions of logistic procedure. Firms must seek in a ulterior hereafter to implement tools, which will allow information exchange in “ existent clip ” .

– Definition of a general process for purchase pattern ( centralized or decentralized ) .

Operational Degree

In an operational degree it is necessary at least to develop the undermentioned guidelines:

– Definition of critical stuffs for physical flow rationalisation ;

– Amplification of supply programs sing the three hierarchal degrees of planning. It should be developed a general initial program, an intermediate program for a shorter period and a committedness program in a hebdomadal footing for day-to-day activities ;

– Amplification of site layout be aftering sing proficient and economical feasibleness of several internal conveyance options for managing stuffs and previewing different agreements for the different site stages ;

– Planning of perpendicular conveyance equipment usage in a day-to-day agenda ;

– Amplification of designs for production for critical services ;

– Incorporation of constructive system alterations seeking to allow them more rationalized or industrialized.

4.3.6 Decision

This paper aimed to originate a treatment about the current chance of analyzing logistics applied to constructing building, and to briefly depict some constructs and direction tools that can be applied to logistics betterment. General guidelines so were presented based on three in-between size Brazilian edifice companies ‘ experiences and on a theoretical contemplation about the subject. As it was foreseen in the initial hypothesis, in all studied companies it was possible to place positive and negative experiences in logistics direction. The most relevant positive experiences found in one or more of them have been gathered in the general guidelines. On the other manus, the negative experiences showed possible alterations in logistics direction in order to be more effectual and efficient, so they besides have helped to develop some of the presented guidelines.

4.4 CASE-3 Competing building direction paradigms

4.4.1 Introduction

Undertakings are conceived as impermanent production systems, to be designed in the visible radiation of relevant ‘physics ‘ of the undertaking to be accomplished. It is claimed that complex, speedy, and unsure undertakings can non be managed in traditional ways. Detailed CPM agendas, after-the-fact trailing, earned value analyse, and competitory command are unequal to the challenge of today ‘s dynamic undertakings. The instance views Lean Construction as a new paradigm disputing traditional believing about building and undertaking direction.


Planing and doing the merchandises the first clip is what building undertakings are all about and set them steadfastly in the same category with other undertaking based production systems ; e.g. , ship building, film production, package technology, consumer merchandise development, etc.

This undertaking direction attack to undertakings brings with it some cardinal constructs, among the most of import of which value, flow and pull. Value is understood as a production construct, non an economic construct. Consequently, looks like value for the money are replaced with looks like value is provided when clients are enabled to carry through their intents.

Flow, the motion of stuffs and information through webs of mutualist specializers, is about unseeable to those who see through the eyes of traditional undertaking direction.

4.4.2 The anomalousness

Traditional undertaking direction assumes that variableness in work flow is outside direction control and so does non try to consistently cut down variableness. Rather, eventualities of assorted kind are used in an effort to suit and absorb this external variableness within the bounds of budgeted clip and money. In 1994, Ballard and Howell ( Ballard, 1994 ; Ballard and Howell, 1994 ; Howell and Ballard,1994a and 1994b ) began printing measuring informations on work flow variableness. The first information showed a 36 % program failure rate ; i.e. , 36 % of assignments on hebdomadal work programs were non completed as planned. Later publication ( Ballard and Howell, 1998 ) expanded the information set, uncovering a 54 % expansive mean program failure rate over a broad scope of undertakings and undertaking types.


Disciples of the old paradigm conceive a undertaking in footings of bringing in conformity to contracts, pretermiting waste minimisation and value maximization ends. Failure to hold on the really object of survey offers small chance of understanding on anything else.

4.4.3 Management

The viing constructs of direction can be expressed in footings of Johnson & A ; Broms ( 2000 ) pronouncement between Management- By- Result ( MBR ) and Management -By-Means ( MBM ) . MBR would hold directors set up fiscal marks and proctor public presentation against those marks. Fiscal steps are used to measure and rectify production procedures. MBM would hold directors make and keep the agencies or conditions for sustained organisational public presentation, trusting on procedure steps for feedback on system public presentation. Johnson and Broms present Toyota as one of the examples of MBM.

MBR conceives direction as consisting of end puting before the act of production, supervising during the act of production, and rectifying after the act of production. The MBM construct of direction by contrast has production system design earlier, system operation during, and betterment after the act of production, with runing itself divided into end scene, commanding and rectifying.

4.4.4 Control

Traditionalists conceive control in footings of after-the-fact discrepancy sensing, while the Thin Constructionists conceive control in footings of active guidance of a production system or undertaking towards its aims. This can clearly be understood as a effect of the MBR and MBM constructs of direction.

4.4.5 Will tilt building be winning?

Not all the rivals to bing traditional manner of working are successful. An sentiment is set that thin building will displace Traditional believing about undertaking and building direction.

Budget net income: $ 6,200,000

Actual net income: $ 9,200,000

Figure 2.6: GyM Profitability Improvement

Figure shows the existent versus estimated gross border ( runing net income ) on the first nine undertakings on which they employed a thin building attack. Profit border increased by $ 3 million, from $ 6.2 to $ 9.2 million. This is one illustration of many.


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