Lean Construction Industry

Embed Size (px)

Citation preview

  • 8/3/2019 Lean Construction Industry

    1/54

    What is Lean Construction?

    Professor Lauri Koskela

    University of Salford

    Lauri Koskela 2009 Lauri Koskela 2008

  • 8/3/2019 Lean Construction Industry

    2/54

    What is lean production?

    Wh has it been so difficult to decode?

    What is lean construction?

    ow s t erent Issues of im lementation

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    3/54

    What is lean production?

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    4/54

    Car manufacturing in North America

    Lauri Koskela 2009Guardian 14.11.2008

  • 8/3/2019 Lean Construction Industry

    5/54

    Why does the Toyota Production System

    TPS erform better than conventionalmethods of production in car manufacturing?

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    6/54

    Toyota production system(Fujimoto 1999)

    1. Routinized manufacturing capability

    static & routine

    2. Routinized learning capability

    d namic& routine

    3. Evolutionary learning capability

    -

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    7/54

    Routinized manufacturing capability

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    8/54

    Overproduction

    Correction Material movement

    Flow ofmaterials

    Inventory

    Waiting

    Motion

    Human

    action

    Lauri Koskela 2008

  • 8/3/2019 Lean Construction Industry

    9/54

    The conventional big idea of

    production

    In ut OutputProduction

    Lauri Koskela 2008

  • 8/3/2019 Lean Construction Industry

    10/54

    Decomposition

    Productionprocess

    Productionprocess Products

    Materials,

    labor,machines

    Subprocess Subprocess

    Powerful assumption: decomposed subprocesses are mutually independent!Thus, the whole production effort can be integrated in an additivemanner:by minimizing the costs of each department, function, section, and work station

    Lauri Koskela 2009

    .

  • 8/3/2019 Lean Construction Industry

    11/54

    ,

    to buffering for creating (relative)

    inde endence between workstations ie.material piles which ensure that each work

    and seem always busy

    to big batches or minimizing the set-up

    time

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    12/54

    Source:

    Lauri Koskela 2009

    Schonberger (1996)

    World Class manufacturing:The Next Decade.

  • 8/3/2019 Lean Construction Industry

    13/54

    Inventor turn rate is connected to

    efficiency!

    Note: Commitment measuresinventory in days, an inverseconcept in comparison to

    Radio, tv and

    nven ory urn.

    (Holmstrm: Realizing

    the productivity

    equipmentpo en a o spee ,1995)

    Lauri Koskela 2008

  • 8/3/2019 Lean Construction Industry

    14/54

    Source:Schonberger (1996)

    World Class manufacturin :

    Lauri Koskela 2009

    The Next Decade.

  • 8/3/2019 Lean Construction Industry

    15/54

    US Manufacturing performance 1950 - 2000

    The more intensively the T idea is implemented,

    the more decline in performance!

    Figure from: Schonberger. 1996. World Class Manufacturing: The Next Decade.

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    16/54

    is a heroic idealization that

    ,such as excessive work-in-progress,

    w c y ecreas ng v s ty an rapfeedback,

    tends to reduce performance further

    u v u .

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    17/54

    Production happens in a timeline

    material, there are good stages

    ,waiting, inspection)

    Let us eliminate the bad stages (also

    even better

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    18/54

    Moving Waiting Proces-

    sing A

    Inspec-tion

    Moving Waiting Proces-

    sing B

    Inspec-tion

    Scrap

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    19/54

    In manufacturing, the F idea

    translated into... Just-in-Time (JIT)

    Reduction of transfer throu h roduction cellsand appropriate layout

    Reduction of waiting through small lots and

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    20/54

    ow v ewow v ew

    transformation and other phenomena:

    First principle: Elimination of non-

    Further principles: Time compression,var a y re uc on, e c.

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    21/54

    as etime

    time

    Waste

    Processing Processing ProcessingProcessing

    time

    time time timetime

    Time

    Lauri Koskela 2008

  • 8/3/2019 Lean Construction Industry

    22/54

    leads to enforced improvement and

    innovation in Production system design

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    23/54

    Routinized learning capability

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    24/54

    ew ar em ng : may e e p u o

    think of the three steps in the mass production

    sense, specification, production, and inspectioncorrespond respectively to making a hypothesis,ca y g ou a expe e , a es g ehypothesis. These three steps constitute a

    n mi i n ifi r f irinknowledge.

    Spear and Bowen (1999): whenever Toyotadefines a specification, it is establishing sets ofhypotheses that can be tested. Thus, the

    Lauri Koskela 2009

    .

  • 8/3/2019 Lean Construction Industry

    25/54

    Interlocking set of methods and tools

    Scientific ex erimentation Standardization

    representation of the standards in the

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    26/54

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    27/54

    Recent examples

    A3 Monozukuri

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    28/54

    A3 (An A3 size standard paper) is used to visually explain problem solvingprocesses, typically for kaizen events.

    t s ou ow as a story, exp a n ng t e steps o pro em so v ng. It also keeps the visual record of past problem solving efforts.

    Heading

    Plan Do

    Check Act

    Footnotes

    Adapted fromLean Manufacturing Advisor, September 2005: Volume 7, Number 4

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    29/54

    Lauri Koskela 2009Source: https://reader009.{domain}/reader009/html5/0510/5af370e950f02/5af370fc7a095.png

  • 8/3/2019 Lean Construction Industry

    30/54

    monozu ur means av ng e sp r o pro uceexcellent products and the ability to constantly

    (JETRO)

    Monozukuri is a term used since the late 1990s

    to identify the cultural heritage that Japanesemanufacturers have developed since the. ,

    Similar to martial arts such as karateand

    m n z k ri r ir n inpractice, effort, improvement and patience tomaster a skill or create a new skill to outperform

    Lauri Koskela 2009

    . ,

  • 8/3/2019 Lean Construction Industry

    31/54

    Hitachi

    Executive Officers [Effective January 1, 2007] [(b) Promotion/ (c) Change ofPosition]

    Shoyama

    KazuoFurukawa

    President,General Manager of Supervisory Office for MONOZUKURI

    MichiharuNakamura

    Executive Vice President and Executive Officer, in charge ofResearch & Development, Business Incubation, Hitachi Group Chief

    Innovation Officer and Hitachi Group Chief Technology Officer

    Takashi Executive Vice President and Executive Officer, General Manager ofHatchoji Compliance Division, in charge of Corporate Planning &

    Development, Legal & Corporate Communications, ManagementAudit, Procurement

    Lauri Koskela 2009 Lauri Koskela 2008

    TakashiMiyoshi

    Executive Vice President and Executive Officer, Chief Hitachi GroupHeadquarters, in charge of Business Development and Finance

  • 8/3/2019 Lean Construction Industry

    32/54

    . , ,

    thanks to a more valid concept of production

    2. Built-in continuous im rovement3. Constantly evolving

    - -,

    innovation Increasingly applied in Western manufacturing, but

    un ers an ng an mp emen a on n e es agbehind in comparison to Japan

    lean manufacturing in the West for 15 20 years

    Focus on the transformation of mass manufacturing

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    33/54

    What is lean construction?

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    34/54

    The many uses of decomposition in

    construction Work Breakdown Structure

    Gantt chart: the total duration is decomposedwith regard to individual work packages andtasks

    Decision rule: If each task keeps its start and enddate, the whole project is completed in schedule

    Budget: The total cost is decomposed with

    re ard to individual work acka es and tasks Decision rule: If each task is kept within its budgeted

    cost, the whole project is completed in budget

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    35/54

    Applicability of lean production to

    construction?

    Can the TPS be a lied in construction? Two views

    methods and practices from car

    Egan report in the UK)

    car manufacturing, and requires areinterpretation of the theory (IGLC)

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    36/54

    .

    Lean manufacturing Lean construction

    ?

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    37/54

    Task of three weeks in the construction...

    Predicted, average output

    t

    Outp

    Week 1 Week 2 Week 3 Time

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    38/54

    What happens in construction reality!

    Problems occurring

    during the taskProblems relatedto starting the task

    Problems relatedto completing the

    task

    Output

    TimeWeek 1 Week 2 Week 3

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    39/54

    Critical path network: A task is started after the completion-

    (In site practice: A task should be started when

    Precedingtask

    Task

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    40/54

    Last Planner: A task is started when all prerequisitesa an

    Precedingtask

    TaskOther

    inputs

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    41/54

    recon ons or a

    Construction design

    Components and materials

    Workers

    Equipment

    S ace

    Task

    Connecting works

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    42/54

    Assembly tasks

    Consider a task with one week duration,

    w seven prerequ s es npu ows

    Let us assume that the reliabilit of each

    input flow is 95 % during one week

    any input flow during the week, when

    starting and carrying out the task, is

    0 957 = 0 70.

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    43/54

    - Congestion, out-of-sequence work,

    multi le sto s and starts inabilit to dodetailed planning in advance, obstruction

    ,

    without the most suitable equipment for

    preparation), interruptions due to lack of

    materials, tools or instruction, overtime,

    oversizin of the crew.

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    44/54

    - a ng- o as a waste re ers to a s tuat on w ere

    a task is started without all its standard inputs, or

    availability of at least one standard input has.

    The term input refers not only to materials, but to, ,

    personnel, external conditions, instructions etc.

    - ,i.e. the waiting time for a part is negative

    Lauri Koskela 2009

    In construction the impacts of T

  • 8/3/2019 Lean Construction Industry

    45/54

    In construction, the impacts of T

    are partly different cqu r ng es gn y owes cos ea s o eros on o ees

    and corner-cutting in design work

    , ,management, instead of production management

    Procurement of components by competitive bidding robstime from prefabrication

    These phenomena lead to the increase of unreliability of, -

    working without all standard inputs at hand, in an

    improvised manner Making-do is the major waste to address in construction!

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    46/54

    Features of Last Planner:

    Look ahead Checking task

    planning

    Making

    improvement

    Conversation andcommitment

    completion &Finding causesplanning

    t

    Outp

    Week 1 Week 2 Week 3 Time

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    47/54

    Graa y Montero Perus biggest contractorBudgeted and realized margin in the first 9 projects where LP in use

    45%

    25%

    u gete arg n n tota : , ,

    Realized Margin in total: $ 9,200,000

    5%

    15%

    -15%

    -5%

    Project

    Project

    Project

    Project

    Project

    Project

    Project

    Project

    Project

    Bid Margin Actual Margin

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    48/54

    A contractor in Finland re orts on usin Last Planner:

    Antti Husso: Last Planner not only facilitatesone's own work, but especially improves the productivity on site.

    Lauri Koskela 2009

    . .

  • 8/3/2019 Lean Construction Industry

    49/54

    Ends

    Elimination of makin -do Lead time reduction (inventories, buffering)

    eans

    Last Planner system of production control

    Practices and methods in lean production,

    when a licable

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    50/54

    or one-o -a- n pro uct on an

    construction, we need theory-baseddevelopment of lean manufacturingconcepts do not cover all that is needed

    (although we increasingly find thatmanufacturing concepts are applicable inconstruction)

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    51/54

    Issues of implementation

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    52/54

    ven a cons ruc on canno e c ange overn g ,

    where should change start?

    from owners if only the owner Most often: upstream

    decisions and stages of construction, contractual and

    from supply chain reorganisation Rather/also the focus should be on: o erational desi n,

    prefabrication and site production processes where theend product is created

    ean pr nc p es can e use everyw ere, even n a po nwise way but the results are increasingly better, thebi er the area of a lication

    Lauri Koskela 2009

    Where should change start in a

  • 8/3/2019 Lean Construction Industry

    53/54

    Where should change start in a

    company? rom t e top, rom t e manag ng

    director who should be a teacher andmentor on lean for his subordinates

    Likers Princi le 9 in The To ota Wa

    Grow leaders who thoroughly understand thework live the hiloso h and teach it toothers.

    Hitachi (Japan)

    Lauri Koskela 2009

  • 8/3/2019 Lean Construction Industry

    54/54

    Thank You!

    Comments?

    Lauri Koskela 2009 Lauri Koskela 2008