Lean Design and Construction

Transcription

1 Lean Design and Construction By Mitchell Crews Journal of Quality Management Systems, Applied Engineering, and Technology Management Specialty Area: Quality Management Systems Scholarship Level: 3.8 Publication: Volume 2017, Issue Number 2 Mitch Crews is a construction project manager at Kadean Construction. Kadean is a commercial general contractor and construction manager located in St. Louis, MO with a special focus in the healthcare and industrial building markets. He manages seven to ten million dollars in projects annually. He graduated with a B.S. in Construction Management from the University of Central Missouri in 2012 and is currently pursuing his M.S. in Industrial Management with an anticipated graduation of August joqat.com Author Supported JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 1

2 2 Abstract Lean principles started in the manufacturing industry and are widely used in business to reduce waste. This reduction in waste is a key factor in becoming a more effective business and thus making the business more profitable. The construction industry has long been associated with wasteful processes and practices. For this reason, the construction industry has recently started implementing Lean processes in order to become more efficient. Being that Lean was developed for manufacturing there are some differences that do not translate perfectly into construction but the overall goals and mindset remain the same. I intend to provide information on the Lean process and what the construction industry can do at the company level in order to implement some of these processes so that they can reduce waste and become a more profitable business. I will also discuss the drawbacks of using Lean and what will be required in order to successfully implement Lean processes at the project level. However, the implementation of Lean processes does require that an entire company buys in on the concepts. Keywords - Lean, Design and Construction, Waste, Efficiency, 5S JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 2

3 3 Description What Is Building Construction? Building construction, the techniques and industry involved in the assembly and erection of structures, primarily those used to provide shelter (Chang & Swenson, 2017). As Chang and Swenson pointed out building construction is the industry by which shelters are built. There are countless different types of structures that serve different purposes. Building construction has been around since the beginning of ancient human civilizations. The first structures were used for temporary shelter from the elements. Today building construction is an extremely complex and challenging industry that is only limited by our own imaginations as well as the limitations set by physics of our world. In 2015 alone, the global construction market accounted for over Eight Trillion Dollars (US). That puts construction in the top 50 markets worldwide for size and influence. This means that construction across the globe is a very important factor to our economy both domestically and internationally (Market Reports Store, 2015). This makes building construction one of the most important industries across the world today. What is Lean? Description The core idea is to maximize customer value while minimizing waste. Simply, Lean means creating more value for customers with fewer resources (Lean Enterprise Institute, 2017). In layman s terms this means that the goal of Lean is twofold. First, provide additional value to your customers with fewer resources. Second, reduce the wasteful processes and procedures. At the core level of Lean this is what it is all about, you need to put the customer first and through that you will become a more successful business. Reducing waste is not a JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 3

4 4 byproduct of Lean it is an intentional goal as well but the reason for doing so is to provide additional value to your customers. The term "Lean" was coined to describe Toyota's business during the late 1980s by a research team headed by Jim Womack, Ph.D., at MIT's International Motor Vehicle Program (Lean Enterprise Institute, 2017). Womack describes three key topics to focus on for managers who wish to implement Lean within their organizations: purpose, process, and people. Purpose, what problems will you be solving for your customers in order to provide value. Process, how will your organization evaluate your processes in order to make sure they re capable of achieving success in providing for your customers. People, how will your organization make sure that people are watching each process and will be monitoring as well as implementing continuous improvement of those processes (Lean Enterprise Institute, 2017). Making sure that top level management buys into the three P s listed by Womack does not guarantee success but it does provide the initial requirements to implement Lean within an organization. Tools and Techniques Lean tools need to have a customer focus through three main ideas: eliminate waste, simplify, and create flow. Through continuous improvement and using the Lean tools, these goals are accomplished. The following is a list of Lean tools, according to Leanmanufacturingtools.org: standardized work, Andon, 5S, performance management, right first time, problem solving, SMED, PokaYoke, visual management, TPM, autonomation, Kaizen, just in time, 7 wastes, audits, TAKT time, Kanban, value stream mapping, bottleneck analysis, and Jidoka. Not all of these tools can be used by every company or in every situation. These tools are merely available for us by an organization, or an individual within that organization, to evaluate processes and reduce waste. Understanding how to properly use these tools and evaluate JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 4

5 5 the results is more important that being able to list all of them as it is more likely that a few well understood tools will be more beneficial to your business. Many of the Lean tools were specifically developed for process improvements in the manufacturing industry, which makes sense being that the idea of Lean comes from the manufacturing industry. However, there are a few tools that are for all intents and purposes universal. Two tools that I believe, despite being very basic, are the most important and are universal are: 5S and 7 Wastes. These two particular tools are the easiest to understand and implement at the production level of work. The ability for easy understand by employees and easily identifiable data after implementation are what make these two tools the most important. 5S is one of the basic building blocks of Lean, one of the first Lean tools that you will start your implementation with and one without which you cannot succeed (Lean Manufacturing Tools, 2017). 5S stands for five words in Japanese: Seiri, Seiton, Seise, Seiketsu, and Shitsuke. These words, when translated to English become the 5C s: clear out, configure, clean and check, conformity, and custom and practice. The idea of 5S is to create a workplace that is designed for optimum efficiency and elimination of waste. Seiri (clear out), separate the essential items from the non-essential. Seiton (configure), find a place for everything you need and dedicate that place. Seise (clean and check), clean your workplace and evaluate for ways to improve. Seiketsu (conformity) make sure you are not just doing what you have always done. Shitsuke (custom and practice), make the other 4S s part of your daily routine. There is also an unofficial 6 th S that is gaining traction, in the US and UK, safety. Safety is very important which is why some companies are choosing to start implementing this as well but it is not traditionally part of Lean processes and practices. However, it is anticipated that in the future safety will JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 5

6 6 become part of the 5S tool and will be known as 6S thereafter (Lean Manufacturing Tools, 2017). According to the American Society for Quality there are seven types of waste: overproduction, queue time, transportation, non-value-adding-processes, inventory, motion, and costs of quality (scrap, rework, and inspection) (American Society for Quality, 2017). Overproduction, producing too quickly or in quantities larger than those required by the customers. Inventory, having more labor or materials than you need at any given time. Queue time, waiting for the next or previous process. Motion, unnecessary movements of parts or people within a process. Transportation, unnecessary movements of parts or people between processes. Costs of quality; scrap or left over materials, rework of previously produced goods, and inspection time of the goods. Implementation As discussed previously, Lean manufacturing is a system of techniques for running a business. The techniques differ according to the application but they have the same goal: elimination of all non-value-adding activities, waste, from the business. These aforementioned wasteful activities are not necessarily the first step to Lean implementation, but it is important to understand the foundation of the wastes you are trying to eliminate. In my opinion, the single most important first step in Lean implementation is top level management buy in. The reason for this is that Lean is a methodology that requires implementation throughout the organization. It is not something that can be done in bits and pieces or when it s most convenient. In order to successfully implement Lean, resources will need to be allocated, training will need to occur, and all levels of employees need to understand how to use it. JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 6

7 7 Lean methodology, once implemented, becomes a part of the organizational culture of a business. This culture shift will result in focusing on the people, so that the people can improve the processes. You don t build a business, you build people, and the people build the business (What is Lean, 2017). These process improvements also require the people to focus on continuous improvements of those processes. This means that Lean is not a set it and forget it implementation. It takes continuous work that translates into an environment where everyone is always attempting to improve. Benefits Lean can provide an organization with a clear competitive advantage since the correct application of the Lean principles will realise substantial benefits that include: greater productivity, greater throughput, improved quality, reduced cycle times, less fire-fighting, smoother operation, and reduced operating costs (Burge Hughes Walsh, 2017). Listed below are some of the most commonly recognized benefits to Lean implementation you can expect, although you may see others as well. Improved quality, improved visual management, increased efficiency, manpower reductions, easier to manage, total company involvement, problem elimination, reduced space, safer work environment, and improved employee morale (Lean Manufacturing Junction, 2014). These commonly recognized benefits are just a few of the benefits you can expect to see after properly implementing Lean within your organization, but these again tie back to making sure Lean is properly integrated into the corporate culture of your organization. Without a full commitment to Lean your organization cannot expect to see these major benefits. The true benefits of Lean implementation within your organization cannot be completely evaluated quantitatively, as there are qualitative measurements, such as employee happiness, that JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 7

8 8 will be a byproduct of implementing Lean. Although the quantitative measurements are typically the most important when evaluating if a process has been successful for a business. Return on investment and profits are the most important in terms of whether implementing Lean was a good business decision. Through the reduction of waste, profits will increase. Through employee happiness and involvement, continuous improvements as well as more efficient work processes will add to the customer value. So, it is my opinion that both the quantitative and qualitative data should be considered because at the end of the day they both speak to the health of a business decision. Challenges Lean is not perfect, or rather people are not perfect, so in addition to the vast number of benefits there are some challenges you may face with Lean as well. Depending on the planning and effort put into your implementation, most of these should be fairly easy to overcome (Lean Manufacturing Junction, 2014). Lean Manufacturing Junction has identified four main categories of challenges: resistance, cost, upkeep, and initial labor increases. Resistance to change is the nature for most people, especially in the case of long term employees. Overcoming this initial resistance is a major milestone, this can be accomplished by presenting the benefits of Lean. Training issues fall within the resistance category as well. Lean requires extensive training for all employees, the most efficient way to accomplish this is through the practice of training the trainers. Training the trainers will allow an organization to focus their efforts on highly trained trainers who will then train the employees of a company in the Lean processes and practices. Costs are a part of doing business, and in order to produce long term results you will need to increase your short-term spending. It costs money to fix the issues that are currently presenting JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 8

9 9 themselves. It will cost money to: train employees, redesign equipment, and mistake proof processes. These costs will be part of the return on investment plan put in place prior to implementing Lean, and will pay for themselves over and over once permanent fixes are put into place within the organization. Upkeep will be required to make Lean successful. Such torn labels which will need to be replaced. Parts will need get relocated, as new positions are found for them throughout the Lean process. Levelized processes will require regular maintenance and updates. However, with proper execution and increased efficiency you should have additional resources available to allocate to take care of these needs related to upkeep. Increases in labor costs, at least initially, will be required in order to properly implement Lean. At first, temporary employees will be required in order to use your full time employees to fully implement Lean and learn the processes. These initial costs will be offset over time as the Lean processes are put into place within the organization. This is another area where the return on investment will need to be tracked and shown to the organization as a reason for implementing Lean within the organization. What is Lean Design and Construction? Description Founded in 1997, Lean Construction Institute (LCI) seeks to improve the Construction and Design industries through Lean approaches to project design and delivery (Lean Construction Institute, 2017). Why do we need Lean in construction? Since the 1960 s construction is the only industry, excluding agriculture, that has seen a decrease in efficiency and productivity. Other industries have seen increases over one hundred percent in terms of efficiency and productivity. The LCI has reported that approximately seventy percent of JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 9

10 10 construction projects are over their original budget and delivered late. In summation, the industry is broken (Lean Construction Institute, 2017) and something needed to be done to fix it. These Lean methods seek to improve the design and execution of a project through improved relationships, shared industry knowledge, and commonly recognized goals. This breaks down the traditional method of construction and replaces it with one that focuses on putting the project first and the needs of the individuals, or organizations, secondary to the project. The overall goals are: reduced waste, improved project schedules, and improved customer satisfaction. Although these goals are set at the project level due to the nature of construction, it is important that these become standard practices in order to improve construction as an industry (Lean Construction Institute, 2017). Lean design and construction differs from traditional project management in the following ways. Control is redefined from monitoring results to making things happen, with a measured and improved planning process to assure reliable workflow and predictable project outcomes. Maximizing value and minimizing waste at the project level is the goal, versus the traditional practice of attempting to optimize each individual activity. Value to the customer is defined, created and delivered throughout the life of the project, while traditional practice calls for defining requirements at the outset for delivery at the end, despite changing markets, technology and business practices. Coordinating action through pulling and continuous flow, as opposed to the traditional, schedule-driven push which places an over-reliance on central authority and project schedules to manage resources JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 10

11 11 and coordinate work. Decentralized decision-making through transparency and empowerment provides project participants with information on the state of the production systems and empowering them to take action (Lean Construction Institute, 2017). It is important to understand the differences between traditional project management and Lean design and construction so that improvements can be tracked and become the new standard. This new and improved standard of construction will inevitably reduce waste and bring vast improvements to the productivity and efficiency of the construction industry. Tools and Techniques Many of the lean tools discussed previously were developed specifically for the manufacturing industry, so they are not the best fit for the construction industry especially considering the project-centric focus. However, tools such as 5S and 7 Wastes do still have a place in the construction industry as they are applicable and add value. The construction industry has adapted a few of their own Lean tools and processes specific to construction such as: A3, Last Planner, PDCA, 5S, project management software, and integrated project delivery (Reckley, 2016). These processes and tools listed are just a fraction of the ones used across the industry but these are the most commonly used in a Lean design and construction environment. The A3 is essentially a Value Stream Map (VSM) that shows the existing process and how we want the process to look when we are done. An example of this would be a current process that includes five steps and takes 20 minutes, we want this process to use three steps and take 15 minutes. So, we plot the information on the A3 to visually show how we plan to make this improvement. The A3 is called such, because the recommended size for the paper it is shown JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 11

12 12 on is that in European measurements, in the US this size is commonly referred to as 11x17 (11 inches by 17 inches). The Last Planner System consists of five major components arranged in this order: master planning, pull planning, make ready planning, weekly work planning, and learning and improving planning. Master planning consists of: the master strategy, master schedule, and critical project milestones. Pull planning consists of: collaborative between construction trades, and team buy in. Make ready planning consists of: 6 week look ahead (look ahead schedules vary by company, customer, and project), and constraint logs. Weekly work planning consists of: 1 week look ahead, individual team member commitment, and percentage complete tracking of activities. Learning and improving planning consists of: daily huddles, and analyzing for improvements. PDCA better known as Plan Do Check Adjust (Act) is a familiar concept among project managers across a variety of industries. Lean design and construction uses this tool to address specific problems. Plan, you identify the problem you want to fix. Do, you execute your plan. Check, you evaluate if your plan is working to fix the issue. Adjust (Act), you adjust your plan as needed to fix the issue. In Lean construction this tool is used not only at the project level but also at the specific process level. 5S, as discussed previously, stands for: Seiri, Seiton, Seise, Seiketsu, and Shitsuke. In Lean design and construction these terms have been adapted to five US English terms. Sort, Standardize, Sustain, Straighten, and Shine-Sweep. Sort; co-locate materials need, stage only what s needed, and remove the surplus. Standardize; cleaning schedules, and team communication. Sustain; adhere to the plan, and enforce improvements to the plan. Straighten; JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 12

13 13 communicate material and equipment locations to the project team. Shine-sweep; ensure the project work area is free of debris and is clean on a continual basis. The use of project management software is not specific to construction. However, recently the construction industry has seen the value in such software in order to reduce labor time by autonomation of workflows. In Lean design and construction, project management software is used to: improve the communication of project team members (i.e. updated plans, updated schedules, RFI s, submittals, change orders), track project changes, track closeout documentation, and increase efficiency. Integrated project delivery (IPD) is a newer method of contracting. Previously construction used contract structures such as design-bid-build and design-build. These older contract structures inherently create an environment where collaboration is much more difficult and individuals work towards their own goals in order to protect themselves. In IPD contract structures all team members share the responsibilities and are transparent with one another which invites a high level of collaboration on the project. This enhanced collaboration reduces missed items and despite having a higher initial cost to the owner, provides the best value. Implementation Implementation of Lean design and construction is similar to that of Lean in the manufacturing industry. However, there is one major difference. Lean design and construction is project based meaning that the implementation process must occur significantly more often. The project implementation must happen every time a new project team has been established. In Lean for manufacturing this implementation occurs at the company level as is implemented throughout the company. JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 13

14 14 Benefits The benefits of Lean design and construction are similar to those previously listed in Lean for manufacturing but again these are seen more often at the project level. The construction industry is focused primarily on projects so despite making changes in the office environments at the corporate level, it is more efficient to develop Lean processes and practices that are applied at the project level. These project level improvements do transfer back to the company level, assuming that the projects are successful, as the results will show improved customer satisfaction and increased profits. Challenges The single most difficult challenge to overcome when it comes to Lean design and construction is resistance to change. For most of the modern era, construction has been completed in a similar manner (excluding material and equipment improvements). The old moniker of if it ain t broke don t fix it is the standard way of conducting business in the construction industry. However, as pointed out previously, the construction industry s way of doing business is essentially broken. Overcoming the resistance to change is difficult and there is no clear cut way to accomplish this task but it does need to change for the betterment of the entire industry. Owners are the most important entity when it comes to improving the way construction is done. Owners who contract for construction projects are the ones who provide the capital for the industry. It is their decision as to how these projects are funded and what contract structure is chosen. Construction industry professionals need to make a substantial argument, with a proven successful track record, in order to convince our customers that Lean design and construction provides them with projects that have a significantly higher value when compared to traditional JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 14

15 15 methods of building construction. If design and construction professionals work together in order to accomplish this, I believe it will allow the barriers to be broken down and overcome for the betterment of the industry. Summary "Just as a carpenter needs a vision of what to build in order to get the full benefit of a hammer, Lean Thinkers need a vision before picking up our Lean tools," said Womack. "Thinking deeply about purpose, process, people is the key to doing this. (Lean Enterprise Institute, 2017). This quote by Womack is a perfect summation of why Lean principles and practices are a perfect fit for the broken construction industry. The design and construction industry excels at: producing project plans, executing those plans, and continuously improving those project plans. However, the design and construction industry does a very poor job of: being transparent, communicating effectively, and collaborating. Lean design and construction methodologies seeks improve those areas in which design and construction is weak and maintain the areas that are currently strengths. These changes would go a long way in increasing the efficiency of the construction industry who lags behind pretty much other industry across the globe in terms of efficiency and productivity, despite being one of the largest industries by monetary value. If the construction industry is able to become open minded to the improvements that can be achieved through the implementation of Lean design and construction, they will be able to exponentially increase profits, reduce waste, reduce cost overruns, increase customer satisfaction, and increase the likelihood of completing projects on time. This will not be possible without customer buy in, as the entire project team will need to have the same goal in order to JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 15

16 16 provide the best value. This is contradictory to the existing practice of design-bid-build which results in a low upfront cost but an inferior value to the customer at the end of the project. JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 16

17 17 References American Society for Quality. (2017). What is Lean? Retrieved 2017, from Burge Hughes Walsh. (2017). Lean Benefits - Benefits of Lean, Why Lean is Important. Retrieved 2017, from Chang, P., & Swenson, A. (2017). Building construction. Retrieved 2017, from Lean Construction Institute. (2017). What is Lean Design & Construction. Retrieved 2017, from Lean Enterprise Institute. (2017). What is Lean? Retrieved 2017, from Lean Manufacturing Junction. (2014). Benefits of Lean Manufacturing What can it do for your company? Retrieved 2017, from Lean Manufacturing Tools. (2017). Lean Manufacturing Tools, Principles, Implementation. Retrieved 2017, from Market Reports Store. (2015). Global Construction Market Worth $10.3 Trillion in 2020 (50 Largest, Most Influential Markets). Retrieved 2017, from trillion-in largest-most-influential-markets html Reckley, M. (2016). The Basics of Lean Construction. Presentation. What is Lean. (2017). Lean Tools. The essential set you do not expect. Retrieved 2017, from JoQAT, vol. 2017, no. 2, pp. 1-17, September 2017 Page 17