Best Practices in Lean
Construction and Project
Management
PROF. RENE T. DOMINGO
Asian Institute of Management
rtd@aim.edu
www.rtdonline.com
Rene T. Domingo
rtd@aim.edu
"Strategies for Better Patient Flow and Cycle Time" Leigh
Ann Backer, Family Practice Management June 2002
Rene T. Domingo
rtd@aim.edu
SEEING THE DOCTOR = 19 MINUTES
TIME IN THE CLINIC = 65 MINUTES
PCE = 19 / 65= 29%
Rene T. Domingo
rtd@aim.edu
“The average share of working time used in
value-adding activities in construction is
estimated to be 31.9% in the United States.”
Rene T. Domingo
rtd@aim.edu
2%-10% of project costs are wasted due to
preventable errors.
Rene T. Domingo
rtd@aim.edu
COST OF ACCIDENTS
“In the U.S. safety-related costs have been
estimated to be 6% of the total project
costs. A particular construction site in UK
showed that accidents costs represented
8.5% of the tender price.”
Rene T. Domingo
rtd@aim.edu
Survey of electricians in Alameda Country
Rene T. Domingo
rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
Construction material wastes
• An estimated 10%-12% savings in labor costs
can come from better material-management
systems.
• 10% savings in materials costs can come from
streamlined material flow due to vendor
cooperation.
• Excess material consumption (scrap, wastage,
surplus) accounts for 10% of materials on
average; this ranges from 5%-30%.
• About 9% of purchased materials end up as
wastes (by weight).
Rene T. Domingo
rtd@aim.edu
TYPICAL CONSTRUCTION WASTES I
• Slowdown
• Intermittent workflows
• Searching (tools, files,
materials, personnel)
• Over-processing
• Under-processing
• Unnecessary work
• Multiple stops
• Unnecessary transport or
movement (material,
equipment, personnel)
• Use of inappropriate
equipment
• Use of inappropriate
manpower
• Use of inappropriate
method
• Excess supplies,
materials
• Excess production
• Return of excess and
unused items
• Idle space
• Idle equipment
• Idle personnel
• Unused files and
unnecessary reports
• Unnecessary
overtime
• Unnecessary
meetings
• Unnecessary
attendees
• Work stoppages
Rene T. Domingo
rtd@aim.edu
TYPICAL CONSTRUCTION WASTES II
•
•
•
•
•
•
•
•
•
•
•
Over-loading
Under-loading
Delayed work
Delayed supplies
Delayed response
Waiting (for tools,
information, personnel,
materials)
Backlogs
Late starts
Backtracking
Out-of-sequence work
Workflow variation
•
•
•
•
•
•
•
•
•
•
•
Work variation
Repair
Backjobs
Rework
Wrong specs
Wrong delivery /misshipment
Miscommunication
Document correction
Spoilage
Rejection of materials,
tools, equipment
Accidents
Rene T. Domingo
rtd@aim.edu
Lean Construction
Adverse, uncertain environment
(weather, client, suppliers, subcon)
non-routine tasks
consistent
high-quality
safe
waste-free
on-time completion
routine tasks
Rene T. Domingo
rtd@aim.edu
What is "Lean"?
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rtd@aim.edu
TOYOTA PRODUCTION SYSTEM
(JUST-IN-TIME SYSTEM)
"Produce only what is
needed, when it is needed,
with the quantity needed."
Rene T. Domingo
rtd@aim.edu
SEVEN WASTES (muda)
1.
2.
3.
4.
5.
6.
7.
OVER-PRODUCTION WASTES
PROCESSING WASTES
TRANSPORT WASTES
WAITING TIME WASTES
INVENTORY WASTES
MOTION WASTES
DEFECTS
Rene T. Domingo
rtd@aim.edu
LEAN MANUFACTURING
Gen. Motors
Toyota
Framingham plant
Takaoka plant
assembly
hours/car
40.7 hours
18 hours
defects/car
130 defects
45 defects
8.1 sq. ft.
4.8 sq.ft.
2 weeks
2 hours
assembly
space/car
ave. parts
inventory
Rene T. Domingo
rtd@aim.edu
Using lean thinking, Neenan, a fast growing Colorado
design and build firm, has reduced project times
and costs by up to 30%, through developments
such as:
1. Improving the flow of work on site using tools such
as visual control of processes;
2. Using dedicated design teams working exclusively
on one design from beginning to end to
dramatically speed up the design process;
3. Innovating in design and assembly
4. Supporting sub-contractors in developing tools for
improving processes
Source: www.constructingexcellence.org.uk
Rene T. Domingo
rtd@aim.edu
Pacific Contracting of San Francisco, a
specialist cladding and roofing contractor,
have used the principles of lean thinking to
increase their annual turnover by 20% in 18
months with the same number of staff.
Source: www.constructingexcellence.org.uk
Rene T. Domingo
rtd@aim.edu
WAR ON WASTE
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rtd@aim.edu
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rtd@aim.edu
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rtd@aim.edu
CONVENTIONAL PROCESS FLOW DIAGRAM
value-added
$
non-value
added
time
36 days
VALUE STREAM MAPPING
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rtd@aim.edu
profit
wastes
waste due to design
waste due to construction
sales
costs
value
Rene T. Domingo
rtd@aim.edu
Construction Wastes Monitoring
• Material Timeliness
– cost of late deliveries
– cost of early deliveries
– cost of slow moving inventory
• Equipment downtime
– cost of crane downtime
– cost of construction elevator downtime
• Defects
– cost of rework
Rene T. Domingo
rtd@aim.edu
Lean Principles
1.
2.
3.
4.
5.
6.
7.
Visual Management (andon)
Pull system (Just-in-time)
One-piece flow
Mixed model level production (heijunka)
Auto-stop (jidoka)
Mistake-proofing (pokayoke)
Supplier partnership and information
sharing
Rene T. Domingo
rtd@aim.edu
OBVIOUS
WASTES
HIDDEN WASTES
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rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
“What is not measured is not improved.”
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rtd@aim.edu
MAKING WASTE VISIBLE
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rtd@aim.edu
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rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
$30,000
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rtd@aim.edu
“ANDON” visual controls
NORMAL
SET-UP
BREAKDOWN
NO
MATERIALS
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rtd@aim.edu
As
If
Doing
Something
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rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
A
20% productivity
increase
100 cars
10 workers
B
120 cars
10 workers
100 cars
8 workers
Rene T. Domingo
rtd@aim.edu
Just-in-case (JIC)
“push system” – produce according to capacity
Just-in-time (JIT)
“pull system” – produce according to demand
Rene T. Domingo
rtd@aim.edu
Mistakes waiting to happen in construction
• Work environment
– ambient noises
– cluttered
– limited working
areas
– poorly lighted areas
– distractions
– mobile work site
– discontinuous work
– multiple working
groups
– transient co-workers
– undermanned
operations
– high employee
turnover
– verbal instructions
– participation of nonemployees
– time pressure
– conflicting
instructions
– constantly changing
instructions
– high employee
turnover
– monotonous,
repetitive work
– high variety of parts,
materials, specs
– multiple chains of
command
– multiple work
dependencies
– multitasking
– multiple audits
– lack of standards
– long working ,
operating hours
– undermanaged,
unsupervised
working time
• Worker condition
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
lack of skill
lack of motivation
wrong motivation
fatigue
lack of sleep
forgetfulness
negligence
misunderstanding
distracted
over-confidence
miscommunication
confusion
fear of blame
boredom
poor concentration
intentional, wilful errors
Rene T. Domingo
rtd@aim.edu
JIDOKA – “Smart Automation”
line stop
with
“andon
cord”
Rene T. Domingo
rtd@aim.edu
Pokayoke Products and Processes
can withstand
Customer / User / Operator / Worker
normal and expected
misuse, abuse, neglect, non-use, ignorance,
forgetfulness, fatigue
and
expected external environment and elements
Rene T. Domingo
rtd@aim.edu
VISUAL CONTROL with MISTAKE-PROOFING
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rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
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rtd@aim.edu
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rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
Rene T. Domingo
rtd@aim.edu
LEAN AIRCRAFT
MAINTENANCE
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rtd@aim.edu
Lean System
fast, robust, consistent, cost efficient
non-routine jobs
consistent on-time delivery
routine jobs
Rene T. Domingo
rtd@aim.edu
7.2
/C
60
at
A
4.6
kin
g
9.8
W
or
0.7
W
a it
in g
8.5
W
a lk
i ng
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Do
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n
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or
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at
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80
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To
ols
At
te
nd
an
ce
no
to
bs
er
ve
d
br
ea
k/ i
dl e
M
ate
ri a
ls
Time [%]
100
1.3
3.9
40
45.1
20
0
Rene T. Domingo
rtd@aim.edu
/C
at
A
0.8
kin
g
2.5
W
or
60
W
a it
in g
11.7
W
a lk
i ng
2.5
Do
cu
me
nta
tio
n
Co
or
d in
at
io n
80
100
To
ols
At
te
nd
an
ce
no
to
bs
er
ve
d
br
ea
k/ i
dl e
M
ate
ri a
ls
Time [%]
100
13.4
12.7
4.2
0
40
51.7
20
0
Rene T. Domingo
rtd@aim.edu
"The Hidden Value in Airline Operations"
by Stephen Doig, Adam Howard, Ronald Ritter
Rene T. Domingo
rtd@aim.edu
Best Practices in Lean
Construction and Project
Management
RENE T. DOMINGO
Asian Institute of Management
rtd@aim.edu
www.rtdonline.com
Rene T. Domingo
rtd@aim.edu