This book, lead-authored by Lincoln Forbes, makes an important contribution to the con-struction industry. He has been an active participant in the Lean Concon-struction Institute since 2004 and with co-author Syed Ahmed brings a unique background in facilities design, construction management, quality management/assurance, and industrial engi-neering. He connects emerging lean construction theory and practices with its roots in industrial engineering. In this he saves the baby of lean construction and the bath water of more traditional industrial engineering and productivity improvement practices. The book also connects lean construction with the LEED movement. This makes great sense as lean construction rests on a conceptual foundation and understanding of waste that explains why projects managed on a traditional basis are so often adversarial and difficult to control. Where traditional practice tries to optimize the piece, lean aims to optimize at the project level. This requires a different approach to managing work. Our environ-mental problems arise from similar practices, locally optimizing at the expense of larger systems. Lean won’t save the planet but it does help us understand how to manage larger, more complex systems far more effectively than is possible with practices aimed at local optimization.
Preface
This book was written to address a pressing need for performance improvement in the construction industry. The construction economy is a large sector of many countries, hence its performance directly influences their competitiveness. The book introduces the subject of lean construction as a methodology for improving the entire design and con-struction supply chain. It presents other tools and techniques for improving performance as well, and links them with lean construction as support activities, although they can enhance the performance of an individual stakeholder in the supply chain, such as a mechanical subcontractor. At the core of the lean philosophy is the aim of “global optimi-zation” where entire project performance is maximized, in contrast with “local optimiza-tion” where an individual stakeholder benefits, often at the expense of others. For this very reason, the book advocates an understanding of such techniques as quality man-agement, BIM, ergonomics, and sustainable practices, but that construction professionals should use them to transition from local to global optimization as lean construction is increasingly adopted.
Several members of The Lean Construction Institute shared concepts, experiences, and cases during the development of the manuscript, notably Greg Howell and Glenn Ballard, co-founders of the Lean Construction Institute. They were most generous with their time, ideas, and encouragement, and the book has benefited significantly from their support.
Valuable input and sharing of ideas came from several other leading members of the lean construction community, including Will Lichtig, Peter Gwynn and Tariq Abdelhamid.
(Their contributions and many others are recognized in the Acknowledgments section.) During the past several decades, the manufacturing and service industries have greatly increased their levels of productivity, quality, and profitability through the application of process improvement techniques and information technology. A major contributor to the competitiveness of these sectors is their embrace of the lean production philosophy that evolved from the “Just-In-Time” system that was the foundation of Toyota’s success in automotive manufacturing.
The construction industry lags far behind the manufacturing and service industries with regard to the application of performance improvement and optimization techniques.
According to the Bureau of Labor Statistics (BLS), in the past 40 years the productivity of non-farm industries has increased by over 100%, while that of the construction industry has stagnated. Several research studies have shown that at least 30% of wasted resources are caused by entrenched attitudes in the management of projects. Waste in construction occurs especially in the interaction between trades, and in the handoffs of work from one trade to another. Studies by the Construction Industry Institute have identified that 10%
of project costs is typically spent on field work, and that only 43% of the time spent on construction activity may be considered productive.
As global competitiveness increases, so will the expectation of higher levels of produc-tivity in the delivery of constructed facilities. Increasingly, customers in other industries expect their suppliers to be flexible, communicative, and responsive to their needs in today’s fast-paced business environment. Construction organizations that fail to utilize the foregoing approaches will find themselves at a competitive disadvantage.
Construction industry practitioners have been continually seeking to apply better tech-nologies and processes to improve project delivery, but there is a lack of unified strategy
and there is little incentive to change. Most construction contracts place the parties to construction in adversarial roles, although approaches such as “design–build” and “part-nering” have diminished this challenge to a limited extent. Most recently, initiatives such as Lean Project Delivery and Integrated Project Delivery have been adopted successfully on a relatively small number of projects. This success has been largely attributable to the interest of willing project owners who have set the stage for the close integration among all parties that is needed to create a so-called lean environment. Although the parties to a construction project are interdependent, they tend to make decisions that further their own self-interests. Industry specialization has separated designers from the management of the production process, and this is perpetuated by the potential legal ramifications of apportioning project risk.
Given this industry scenario, innovation is still possible—in the internal operations of each party as well as within the combined activities of the project team, depending on the extent to which they are willing to optimize the entire supply chain for delivering the project. This book recognizes that the supply chain is as strong as its weakest link and encourages innovation within the operations of each of the parties, as a prelude to making these parties strong, effective links.
The book provides a dual approach for improving construction processes: (a) several chapters are devoted to describing lean construction and its applications; and (b) process improvement approaches are presented in other chapters that relate to lean construction but may also improve projects in a so-called traditional environment. It is hoped that read-ers in a traditional construction environment will be encouraged to use the principles described to develop readiness for a lean environment.
It is recognized that true lean construction can best occur when all the construction stakeholders—especially general contractors, construction managers, subcontractors, and material suppliers—are committed to the concept of optimizing the flow of activities holis-tically. It is also recognized that optimizing the performance of individual actors in the construction supply chain does not ensure that the overall process will be optimized or greatly improved if the handoffs from one trade to another do not observe lean principles.
Design activities should address the construction process as well as the finished product.
This adoption of lean construction is progressing gradually with the passage of time. It is being applied selectively to projects where a small number of owners, designers and con-tractors are aware of its benefits and include it in their design and construction contracts.
Lean practices enhance the utilization of resources, reducing waste, and overall costs. They also enable practitioners to improve the quality of the built environment, secure higher levels of customer/owner satisfaction, and simultaneously improve their profitability. This book also explains how industrial engineers may position themselves to play a vital role in the construction industry. Readers are encouraged to become actively involved in the lean construction movement by joining a chapter of the Lean Construction Institute (LCI). LCI may be contacted at www.leanconstruction.org/
What’s in This Book
This book provides tools and techniques designed to enhance the project management process. The treatment of lean methods provides specific procedures for the
modifica-Preface xxix
tion of planning, and scheduling activities to improve the interaction between the parties, reduce waste, and improve performance.
In order to accommodate a wide variety of readers, the book explains the basis of a number of tools and techniques. It is assumed that, for example, some construction prac-titioners may not have a detailed knowledge of tools and techniques. By the same token, nonpractitioners of construction are provided with an overview of construction delivery methods as a foundation for applying process improvement techniques that may already be familiar to them. This book should serve as a contemporary reference for construction practitioners and as a supplementary text for students.
Chapter 1 provides an overview of the construction industry and the relationships among its participants—designers, general contractors, construction managers, contractors, sub-contractors, material suppliers. It explains the construction sector as a significant portion of a nation’s economy, pointing to the consequences of comparatively low productivity.
The chapter briefly describes current design processes and construction delivery methods and advances the adoption of lean methods to address industry underperformance.
Chapter 2 describes productivity measurement in construction as a foundation for improving performance regardless of the means used—lean construction or quality-based initiatives. It provides the theoretical background for comparing work produced by construction processes to the resource inputs—labor, materials, energy, etc. This chap-ter explains productivity concepts and how they relate to performance measurement in construction organizations. It also provides examples of productivity and performance measurement methods.
Chapter 3 explains lean theory and provides a very important foundation for the book by explaining how lean concepts apply to the construction environment. It provides a historical background of the Toyota System and the production management concepts that grew from it. The chapter chronicles the major contributions made by a number of researchers, and lists milestones in the development of the lean construction movement.
The principles of reducing waste and adding value, as well as meeting the requirements for a lean environment are presented.
Chapter 4 builds on the previous chapter by describing The Lean Project Delivery System™ as a proven framework for delivering projects on time, within budgets, with high-product quality, and minimal safety incidents. The application of The Last Planner® System is explained in detail, including the process of learning from performance mea-surement and analysis. The chapter explains the foregoing systems in detail, including related topics such as designing for lean operations and target value design.
Chapter 5 explains lean process measurement including PPC determination, charting of reasons for non-completion (RNC), five-why analysis, rolled PPC and plus/delta analysis.
The chapter also introduces readers to lean tools and techniques such as value stream mapping, Kaizen methodology, 5S, and A3 reports.
Chapter 6 explains how to create an environment that is conducive to lean construc-tion. Lean coaching and how it prepares project participants for adopting lean beliefs and lean practices are described. Detailed cases explain the activities of subcontractor organizations.
Chapter 7 devotes considerable detail to the deployment of lean techniques in construc-tion projects. The book discusses relaconstruc-tional contracting and its deployment as a proven vehicle for lean construction. It presents case studies of project delivery methodologies that have evolved from The Lean Project Delivery System™, such as Integrated Project Delivery and Lean Production Management.
Chapter 8 describes information technology applications to the management of the design and construction processes for benefits similar to those experienced in the manu-facturing and service industries. Information technology–based systems integration and building information modeling among other topics are discussed. Two cases by Professor Salman Azhar of Auburn University, Alabama, illustrate the application of BIM to con-struction projects.
Chapter 9 addresses quality improvement initiatives in construction and describes total quality as an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, ser-vices, people, processes, and environments. The application of Six Sigma techniques in construction projects is also described.
Chapter 10 first presents sustainability as an important foundation for lean construction, based on principles advanced by the U.S. Green Building Council and the Department of Energy. “Green Construction” and “Sustainability” have become a major concern in the design, construction, and operation of facilities as increasing attention is focusing on global warming and other environmental phenomena. Commissioning is described as serving two important roles, ensuring sustainable building performance through “Green”
certification, and supporting project-wide quality control.
Chapter 11 makes available a variety of industrial engineering–related performance improvement tools and techniques. While these tools and techniques have been tradition-ally used in other industries to improve performance, this chapter explains how the tech-niques may be used more extensively to improve construction processes, both in a lean environment as well as in a traditional environment.
Chapter 12 addresses construction site safety practices. It is an area of concern for employers of construction workers; this concern for safety is extended to the employees of subcontractors as well. Successful project delivery requires that safety incidents be mini-mized. The chapter describes several strategies for improving safety, beginning with the design process, especially as a foundation for lean construction.
Chapter 13 presents several topics that relate to human performance in the work envi-ronment, such as motivation, diversity, and ergonomics. These topics can have a signifi-cant impact on a construction team’s ability to maximize its performance, especially with lean construction.
Chapter 14 explains the application of systems integration to design and construction projects through three cases presented by industrial engineers in the construction indus-try. The strategies described are integrated to improve project performance in a traditional environment and further explain how a transition can be made to lean construction. The chapter also discusses possible roles for IEs in the construction industry, and how they might prepare themselves.
Chapter 15 describes the application of post-occupancy evaluation to construction proj-ects and links the techniques to the Deming cycle for continuous improvement. An impor-tant extension of the weekly review that is conducted on lean-based projects is promoted;
learning from project outcomes is essential for improving design and construction pro-cesses. An enhanced model of the project delivery process is proposed, based on lessons learned in the ongoing evolution of lean construction applications.
Acknowledgments
This book has materialized through the selfless sharing of ideas and experiences by many people in the construction industry, especially a number of members of the lean construc-tion community. Their kind support throughout the process of preparaconstruc-tion and publicaconstruc-tion is most highly appreciated. Lincoln Forbes wishes to recognize and thank the following people.
Greg Howell and Glenn Ballard, co-founders of the Lean Construction Institute, are owed a debt of gratitude for helping to make this book possible. Greg shared ideas in the early stages of the book’s development that helped in shaping its direction. He also participated in dialogue on best practices for lean coaching and lean implementation as a roadmap for future lean adopters. Glenn Ballard addressed the historical evolution of lean construc-tion, based on his participation since its inception. He also shared important findings from his many research studies over the years that influenced the content of the book.
William Lichtig, Chief Strategic Officer for McDonough, Holland & Allen, PC, made available his pioneer work with the Integrated Form of Agreement (IFOA). Peter Gwynn, principal, Lean Implementation Services and Dave Koester, Project Manager, Regional Contractors Alliance (RCA), documented a highly successful application of Lean Production Management. Matt Horvat, consultant with Lean Project Consulting, devel-oped illustrative cases with typical scenarios that may be faced by new adopters of lean construction. Hal Macomber, principal, Lean Project Consulting, kindly shared many articles and papers, including those on target value design and study action teams. Robert Blakey, principal, Strategic Equity Associates, made insightful observations on the process of introducing organizational change and coaching management and workers. Professor Tariq Abdelhamid, editor of the Lean Construction Journal, graciously read through a number of chapters and provided helpful feedback. Ed Anderson, principal, Anderson Technical Services, reviewed several chapters and assisted with relevant content. Ed also opened the door to a wide array of experiences, garnered from past assignments in lean projects. Professors Fred Aghazadeh of Louisiana State University and Jim Moore of the University of Southern California provided invaluable feedback by reviewing portions of the manuscript.
Dennis Sowards, principal of Quality Support Services (QSS), introduced associates and clients who were willing to share their lean journeys. They included Chris Warren, Director of Risk Management and Continuous Improvement, Tweet/Garot Mechanical Inc.; Ted Angelo, Executive VP, Grunau Company, Inc.; Tracy Dabrowski, CFO, Belair Excavating/
Contracting, and Paul Pasqua, former director. Other outstanding lean cases were pro-vided by Owen Matthews, President of Westbrook Air Conditioning and Plumbing in Orlando, Florida, recognized as the originator of the Integrated Project Delivery (IPD) methodology and Jay Berkowitz, President of Superior Window Company and a passion-ate lean advocpassion-ate. The following industrial engineers made a noteworthy documenta-tion of lean-related cases drawn from classical IE tools and techniques: Jeff Mason, CEO, Integrated Facility Services (IFS); Al Attah, President of Macval Associates, Dallas, Texas;
Jorge Cossio, President, ITN de Mexico, S.A. de C.V.; and Dr. Larry Nabatilan, formerly of Louisiana State University, who provided an ergonomic study.
Lincoln Forbes extends special thanks to Dr. Vincent Omachonu of the University of Miami, in appreciation for paving the way for this book and for his ongoing advice and guidance.
Both authors would like to thank the following supporters of a great team effort: Prof.
Salman Azhar of Auburn University, who contributed cases and narrative in Chapter 8 on BIM and ICT. Rizwan Farooqi, PhD scholar in the construction management program at Florida International University, who deserves special recognition. He dedicated many hours to leading a team of graduate students to investigate a number of topics, and actively participated in the process of developing synopses and summaries that represented a sig-nificant contribution to the book. Thanks and appreciations are also extended to the follow-ing students who were an important part of the research team: Lakshmi Priya, Saraswathi Vadali, Vishval Mehta, and Farhan Saleem. The authors would also like to thank students Virushali Davakhar and Christina Jordan for their support.
Finally, the authors extend sincere thanks to the following individuals for their help with illustrations: Darrlyn Choate, Charlene Thompson, and Richard Forbes.
Authors
Lincoln H. Forbes, PhD, PE, LEED® AP, is an adjunct professor at Florida International University (FIU), Miami, in the College of Engineering and Computing’s Construction Management and Engineering Management programs. A registered professional engineer in Florida, Dr. Forbes has over 30 years of experience in various aspects of facilities design, construction, and maintenance as well as quality/performance improvement. He has been administrative head of several facilities-related departments and functions in Miami-Dade County Public Schools, the nation’s fourth largest district. These positions included in-house construction, design services, construction quality control, post-occupancy
Lincoln H. Forbes, PhD, PE, LEED® AP, is an adjunct professor at Florida International University (FIU), Miami, in the College of Engineering and Computing’s Construction Management and Engineering Management programs. A registered professional engineer in Florida, Dr. Forbes has over 30 years of experience in various aspects of facilities design, construction, and maintenance as well as quality/performance improvement. He has been administrative head of several facilities-related departments and functions in Miami-Dade County Public Schools, the nation’s fourth largest district. These positions included in-house construction, design services, construction quality control, post-occupancy