Project Team 191:
Lean Principles in Construction
Lean Principles in Construction Project Team
Josh Balonick
Brian Barker
Brian Becker
Tony Buzzeo
Jim Diekmann
Eric DeLaney
Sant Harit
Mark Krewedl
Dan Kumm
Mag Risk
Bob Schulz
Lou Troendle
David Tweedie
Craig Wright
University of Colorado
GUB-MK Constructors / Parsons E&C
General Motors
Praxair
University of Colorado
BMW Constructors
Washington Group International
University of Colorado
Butler Construction
Johnson Controls
Dow Chemical
Washington Group International
Fru-Con Construction Corp., Chair
Black & Veatch
Project Team 191 Mission
To examine the potential for the use of
Lean Principles that were developed in
the manufacturing industry for adaptation
and use in the engineer-procureconstruct (EPC) industry.
The Power of Lean
“Catch up with America in three years.
Otherwise the automobile industry of Japan
will not survive.”
― Kiichiro Toyoda
Founder, Toyota Motor Co.
1894-1952
Lean in Manufacturing
Five Principles of Lean Manufacturing:
1. Precisely specify value by specific product.
2. Identify the value stream for each product.
3. Make value flow without interruptions.
4. Let the customer pull value from the producer.
5. Pursue perfection.
― James P. Womack
Founder, Lean Enterprise Institute
Opportunity for Improvement
in Construction Today
Current
Manufacturing
Current
Construction
Value
Added
10%
Value
Added
62%
Waste
26%
Support
Activity
12%
Waste
57%
Support
Activity
33%
Lean Construction Defined
The Continuous Process of:
• eliminating waste.
• meeting or exceeding all customer requirements.
• focusing on entire value stream.
• pursuing perfection in execution of constructed
project.
Drivers of Lean Manufacturing
• Mass production practices
• Limited space
• Reduced inventory
• Limited natural resources
• Lower demand
• Quality improvement
Drivers of Lean Construction
• Waste
• Non-standardized workplace
• Individual contract structure
• Fragmented relationships
• Supply chain integration
• Available work force
• Produce one-off projects
Progress with Lean Manufacturing
Value Added Work Improvements
Value Added Work Improvements
120%
Hours/Vehicle
100%
80%
60%
40%
20%
0%
Use of lean manufacturing principles
resulted in better optimization of resources.
Accomplishments of Lean Manufacturing
• Half the human effort in the factory
• Half the manufacturing space needed
• Half the investment in tools
• Half the engineering hours to develop a new product in
half the time
• Less than half the needed inventory on site
• Fewer defects
• Produces greater and ever growing variety of products
Lean Construction Principles
• Eliminate waste
• Customer focus
• Workplace standardization
• Culture/people
• Continuous improvement, built-in quality
Waste in Construction Processes
• Excessive material handling
• Rework
• Design errors
• Conflicts between trades
• Conflicts between other contractors
• Ineffective supply chains
Rewards to “GO LEAN”
• Reduce waste / improve efficiency
• Improve safety
• Lower cost
• Reliable Schedules
• Fewer defects / less rework
You have the opportunity to be the
construction industry leader.
Waste Reduction = Sustainability
Current
Manufacturing
Current
Construction
Value
Added
10%
Value
Added
62%
Waste
26%
Support
Activity
12%
Waste
57%
Support
Activity
33%
The Journey to Lean
• Literature research
• Global interviews with early adopters
• Meetings with prominent lean researchers
• Activity case studies
• Questionnaires
Lean Works!!
Implementation Session
Introduction – Lou Troendle, Washington Group Int.
• Change of culture
• Path forward
• Self-assessment tool
Panelists
• Jack Hallman, GM: Owner’s Perspective
• Mike Haller, Walbridge Aldinger: Visual Management
• Paul Reiser, Boldt: Production Planning/Culture Change
• Dan Kumm, Butler: Eliminate Waste
• Jim Diekmann, CU Boulder: Principal Investigator
Q&A
Implementation Session
Georgia A
Wednesday: 4:30-5:30 pm
Thursday: 9:15-10:15 am