Lean Thinking in Construction Industry - Report Example

Lean Thinking Name: Institution: Lean Thinking Background The rigorous process thinking in production though dated to early ages of the fifteenth century, much credits honor Henry Ford for pioneering successfully integrating interchangeable parts and conventional work with moving conveyance to coin the fundamentals of smooth flow in production (Womack & Jones 2003). Important to mention is the place of Kiichiro Toyoda and others in the perfection of the lean thinking rationality, when they zeroed on series of crucial innovations that were geared towards provision of both continuity in process flow and a rich diversity of product offerings. The ultimate Toyota Lean Production system transformed the focus of manufacturing engineer stand alone machines and their utilization to the movement of the product through the lean process. The core of lean thinking was founded on the realization that by right-sizing machines for actually demanded output volumes and creating self-monitoring machines with automated quality checks would significantly optimize manufacturing. Lean construction connotes the contemporary shift in the civil and structural production philosophy rooting from the fundamentals of lean manufacturing. Lean thinking in construction revolves around advanced management and transformation of construction processes toward profitable delivery of high value outputs to the customer’s expectations. Being a philosophical rationality, lean construction can be achieved through clear understanding of the core elements of lean manufacturing that can be married with construction practices for profitable value addition. Introduction Although the lean manufacturing concept has been evolving for eons, its epitome has been fueled by the contemporary insistence on optimization of consumer value at the minimum production cost possible. Ref cites that at the core of a lean organization’s manufacturing goals is to understand the customer value and consistently improve and maintain processes that increase it. The ultimate goal of lean production is to perfect goods and service delivery through optimal value creation processes that reduce inherent waste. To high customer valued production at zero waste levels, lean thinking redirects the focus of the management from strategic deployment of smart technologies and other critical resources towards optimal flow of products and services through value maximization channels that traverse all the core strategy formulation elements: vertical departments, assets, and different technologies. Integrating the lean realism into the construction industry underpins the elimination of waste along the entire value streams. This implies that instead of stand alone construction stages, the lean thinking approach instills adoption of processes that require little menial input, little space, reduced capital, and importantly less time to deliver services at optimal costs but at high quality standards. Lean thinking is the recipe for resilience in the construction world in that it founds basis for dynamic response to clientele desires with high product diversity, unparalleled quality, reduced cost, and reduced project life (Womack & Jones 2003). Noteworthy is that lean thinking underpins efficacy in information creation, management and its utility. This paper seeks to shift the common misconception that lean thinking is only best suited in the manufacturing realm. The critical analysis explores the integration of the concept in the construction industry, which not only shows its versatility in various business systems and processes but also demonstrates that lean does not imply cost reduction: it is the perfect mannerism in organizational thinking and acting. This significance of underlining lean thinking in construction is impart the transformational zeal that characterize an industry replacing the traditional way of thinking to optimal value addition with reduced cost burden. Principles of Lean Thinking Womack and Jones (2003) authoritatively anchored the concept of lean manufacturing on five primary pillars that sequentially guide the implementation and realization of lean thinking techniques (Figure 1). The lean approach starts by the manufacturer first identifying a particular value based on customer needs in a product family. This starting facilitates specification of crucial steps in the value stream for each product family, which helps minimize any manufacturing undertaking that do not create any value. A third addition to the principles is the sequential set up of value creating procedures, which ensure that the product flows systematically from the raw material to the ultimate consumer. Additionally, the customers are let to pull value from the following upstream activity once the flow is introduced. The last principle buttresses on perfection measures that repetitively seek the specified value through the identified value channels, waste reduction measures, and the consistent improvement of the flow and pull techniques. Source: Lean Enterprise Institute (n.d). Rationales of Lean Manufacturing As aforementioned, the mother of the lean thinking philosophy was Henry Ford that inspired large Japanese auto companies to advance the processes to its effective levels. The concept has been deployed successfully by giant car makers across the world with much success, and is increasingly crossing to other industries. Summarily, lean manufacturing is a function of perfect process in terms of design and operations, having the right systems in the organization, and adequate resource endowment to deliver customer centric high value products from the start. The apparent element that underpins the lean thinking approach in the company is the removal of any waste in the operational processes by employing practices and procedures that utilize inputs only to yield intended value. Waste in this context includes avoidable mistakes, straying from the sequence of production, condoning redundant activities, or/and delays in supplies of inputs. Additionally, the strength of lean approach in manufacturing is bolstered by the primary goal of consistently seeking production that satisfies customer’s real desires, which is though understanding the core processes and sequentially eliminating identified points of wastage (Ashworth 2000). Production and Management It is imperative that the lean concept is not a cost reducing program, rather an approach that redirects core manufacturing principles toward value while pursuing zero waste processes. Lean thinking systems channel organizational focus toward particularizing value from the customer end, and identifying the important areas in the development and manufacturing process where the value can be embedded. According to Ashworth (2000), the ultimate mission is to sustain a value stream that facilitates continual flow of products from one value enhancing step to another while pulled by the real customer wants. Lean thinking revolves around rigorous criticism and analysis of every detail in the product development and manufacturing, which seeks to eliminate any change of wrongfulness in the process. Doing the right thing first time means that the concept not only drives perfection but also facilitates for remediation as problems are discovered and their sources and eliminated before spreading through the succeeding production steps. Design and Development Systems The secret behind actualization of lean thinking within a manufacturing concern is through design and development of systems that primarily identify right product, which is then perfectly aligned with effective manufacturing principles. Design in this context involves the development and integration of systems and appertaining components into coherent and achievable product lines. Design implies effectiveness and practicability of building the products, and not only the styling of the external features that are often outsourced to nonproducing parties (Morton & Ross 2002). Lean manufacturing systems work under tools that are developed to harness and objectively analyze customer perceptions and real wants, which benefit the product quality and operational performance. The systems are also endowed with instruments that help in determination of crucial product development components and establishment of manufacturing performance targets. Success in design and development systems is underpinned by plans and techniques that are informed by extensive data about the performance of systems and crucial components, and the performance of products. Systemic improvements must consistently integrate the new models with the older techniques. In addition to front-loading resources towards designs, success in instilled in lean dynamics through synchrony of the manufacturer and the supplier at the design development phase (Morton & Ross 2002). Lean Thinking The lean thinking requires manufacturers to confine production within close proximities in order to maintain smooth work flow. Research and development cultivates certainty in the standard time for each production activity, and thus the actualization of the objective of eliminating time lags and stoppages in the entire process. Additionally, only the optimum quantities on inputs are stored as buffers between processing stages. Important to ensure is that the organization competently understands the all production processes and the resources required at each production level (Table 1). Lean Construction Institute (2012) adds that the organization should, at all time, ensure responsibility and functionally purposeful authority within the workforce. Important to mention is also the inevitable role of real time feedback on process performance and the continual training and skill diversification. Source: Fleury and Fleury (2001) Supply Chain Management The losses associated with supply delays form part of waste that lean production seeks to eliminate. Additionally, lean thinking focuses on removal of unnecessary storage and waste occasioned by the value tied-up in large inventories awaiting assembly. The success factor in the lean supply chain is eh just-in-time (JIT) that requires manufacturers to transform the supply networks to fit in with lean strategies. According to Ashworth (2000), lean supply chain management integrates with firm-wide operations in order for the concept to become customized within the manufacturing principles and systems. Summarily, lean supply chain management principles avoid any dependence on formal contracts and continually benchmark suppliers’ performance against each other based on core components that influence the organization’s capacity. Additionally, a crucial factor to consider in this context is the establishment of functionally close relationship with the suppliers of core components. Application of Lean Thinking to Construction Design As aforementioned, successful lean production systems is underpinned by full integration of its principles into the whole process. In the context of the construction industry, lean thinking requires that all parties b committed, be participative, and cooperate in eliminating obstacles that may bog the operations from traditional contractual arrangements. In designing, lean construction is increasingly cultivated by use of automated instruments that enhance visualization techniques such as the 3D CAD, which orient the definition of the product characterization from the customer end point. Lean through designs in the construction realm demand critical value management to resolute on strategies that achieve more understanding and particularize client value at the core of the processes (Cain 2004). Important to emphasize at the designing level is the use of integrated designs and creation of strategic working partnerships among stakeholders to harness optimal input from cooperation of designers, constructors, and more important the specialist suppliers. Moreover, custom success tests can be achieved through designs for standardization and pre-assembly. This gives the construction concern a leveraging capacity at both components and processes that improve the potential of high quality and profitability without waste. Procurement The ensure lean procurement in the construction industry, the organizational systems should rationalize the chain management to integrate all parties that have a role in creating customer value within delivery process. Efficient cost management is pivotal particularly in instilling transparency of costs, which facilitates waste removal. According to Curtis n.d, significant waste elimination efforts in both processes and routine practices require an explicit understanding of cost elements to ensure decision making seeking tangible customer value acquisition. Efficacy of the cooperative partnerships that characterize stakeholders in the construction industry can be achieved through pursuance of common goals within indistinctive firm boundaries. The JIT strategy is pivotal in a lean logistics system within the procurement operatives. This is because it ensures delivery of materials to the particular point of use, which minimizes the losses occasioned by onsite storage and unnecessary double handling (Cain 2004). Production Planning Lean planning involves strategic benchmarking to identify the best production methods and output. This facilitates the establishment of stable scheduling that draws a clear performance path. Lean construction approach demands extensive use of risk management concepts that ensure risk mitigation for optimally high value output for the client. Morton and Ross (2002) reiterate the relevance of clear communication and proper information management, which ensures effective dissemination of project plans. Team capacity building is crucial to ensure high profile performance that is achieved through training, motivational teamwork, and skill diversification. Lean construction is heavily dependent on real time information, which underscores the need for daily communication about the project progress through routine reporting and improvement meetings. Case Study: Lean Construction at Pacific Contracting of San Francisco The application of lean construction ideals has been exemplified by Pacific Contracting of San Francisco, which is a specialist operative in cladding and roofing. The adoption of lean principles has enhanced the firms income revenue in which they reported an annul turnover of twenty percent increase in a duration of eighteen months without necessarily expanding the workforce (Cain 2004). At the core of the reported performance improvement at the firm was the transformation of the design and procurement approaches, which facilitated on-site construction and informed an investment in the front end of projects to eliminate waste in money and project life. Pacific Contracting primarily identified inefficiencies in the supply chain that limited smooth flow of operations at site, and poor design information and development that frequently distended wastage due to unprecedented redesigns. Deployment of lean concepts involved concerted effort that mobilized effective technology that was married with appropriate tools to improve the planning and execution of construction processes. Lean Construction Institute (2012) provides that use of visual improving 3D design system to enhance the information generation and communication for faster redesigns was instrumental. The computerized 3D design system proved crucial in the pursuance of value at profitable margins in that the inherent isometric drawings of components and interfaces and fit-coordination solved the poor design information problem. The system was particularly instrumental in improving traditional planning construction methods and forming sequential processes that not only improved objectivity but also motivated the work crew. To capitalize on the lean thinking idealism, Pacific Constructing has adopted a process scheduling tool: the Last Planner, which adequately addresses performance hindrances such as lack of materials of inefficient workforce (Curtis n.d). Lean Construction Action Plan It is needless contending that stakeholders in the construction realm that seek lean principles and practices have varied challenges based on their array of needs. However, a strategic action plan is invaluable in helping reduce change resistance and develop the multi-skilling plans. Additionally, an action plan on lean construction can help engender the particular commitment necessary for achievement of lean production. According to Lean Construction Institute (2012), the primary engagement toward realization of lean construction is the identification of a lead agent that takes the onus of lean transformation in the firm. Acquisition of lean knowledge is pivotal that builds capacity in the context of lean techniques and their integrated implementation across the organization. Upon identifying value streams, the stakeholders should start the process as soon as possible and ensure progressive reporting about the general performance. Creation of an organization that facilitates significant flow of value streams in invaluable. This is to imply that the construction firm should start identifying itself with product profiles and the value stream (Ashworth 2000). The organization of a value stream comprises the establishment of a promotion function and a strategic growth path. Processes should be built upon previous successes to integrate the new innovations with old styles. Lean construction is a function of business systems that drive its utility and development across the construction concern. This reflects the need for the company to be active in strategic deployment of lean policies. Internal systems such as the finance and human resource management should be aligned with the lean goals. The production level should be equated with optimal machine size and productivity, and lean knowledge should be disseminated across the human capital. The summative undertaking is to complete the transformation. This part involves concerted efforts to ensure that suppliers and customers are onboard the change process and that they own the achievements. For growth preparedness in the increasingly globalized construction market, develop a master growth strategy that considers internationalizations. Importantly, lean thinking is affected not through a top-down leadership but in a leadership environment buttressed on questioning analysis, and research policy deployment. Recommendations It has emerged that the way to go if a firm is to remain sustainably profitable in the ever changing business realm is to act and perform lean. Success of lean thinking in the construction industry is anchored on improved design management methods and the supply chain management. It is recommended that construction companies primarily consult audit services that independently identify their performance and value addition weak points. This should be followed immediately by informed policy deployment that seeks integration of lean thinking in the implementation of change. Continual monitoring and real-time feedbacks should be sought consistently to avoid repetition of earlier solved problems while facilitating remediation of problems as they are identified. This task should be facilitated by a dedicated agent that is charged with the duty of managing the transformation and implementation of lean thinking in all functions. Conclusion This paper detailed the increasingly transformative production principles characterized by lean thinking. Lean is centered on improving value based on customer wants at optimal cost. Lean thinking in the construction industry is long overdue, and can be achieved through strategic deployment of design improving tools that improve communication of crucial information. Improved supply chain management and close relationship with suppliers and customers is crucial in harnessing full advantages of lean thinking. References Ashworth, A 2000, Added value in design and construction, London, Longman. Cain, C. T 2004, Profitable partnering for lean construction, New Jersey, NJ: Blackwell Publishing. Curtis, M n.d., ‘Construction lean improvement program (CLIP): lean construction’, BRE, http://www.bre.co.uk/page.jsp?id=355( accessed 25 November 2012). Fleury, A., & Fleury, M. T 2001, ‘Alternatives for industrial upgrading in global value chains: the case of the plastics industry in Brazil’, IDS Bulletin, vol. 32, no. 3, pp.116-126. Lean Construction Institute 2012, ‘What is lean construction’, Lean Construction Institute, http://www.leanconstruction.org/index.htm (accessed 25 November 2012). Lean Enterprise Institute n.d., Principles of lean, http://www.lean.org/WhatsLean/Principles.cfm (accessed 25 November, 2012). Morton, R & Ross, A 2002, Construction UK: introduction to the industry, New Jersey, NJ: Blackwell Publishing. Womack, J.P & Jones, D.T 2005, Lean thinking: Banish waste and create wealth in your cooperation, New York, NY: Free Press. Read More