Construction Accounting Article -
Slim Down Project Hassles with Lean Construction

Target Audience: Construction Industry Professionals, Contractors, Health Care Professionals, Energy Efficient Contractors, Contruction-related Deductions Interest

For years, manufacturers have been using so-called “lean” techniques to reduce waste, improve work flow and boost profits. Too bad the same principles won’t translate to construction jobs. Or will they?

Many contractors are finding that, indeed, lean manufacturing processes can help slim down project hassles. Of course, there are some fundamental differences between manufacturing and construction. But, properly applied, lean approaches certainly show promise for contractors.

Getting better all the time

Lean processes focus on a variety of objectives. These include discovering new ways to:

• Improve, rather than control, job performance,
• Use fewer people and resources, and less time, to complete jobs, and
• Focus on the interdependence of activities rather than on specific tasks.

Ongoing communication, planning, evaluation and dedication to value are the bases for lean approaches. But getting there requires a cultural shift — which won’t likely be swift. Those who’ve accomplished it, however, say it’s well worth the effort.

Focusing on value

More specifically, lean construction involves defining what a project owner values — that is, planning a sequence of activities to deliver a project at the price that was bid (with reasonable change orders) and on time (according to the coordinated work schedules). Some lean techniques include:

Reverse phase scheduling. Develop a project schedule by working backward from the target completion date. Use a team for operational planning (structuring the design to facilitate workflow) and for unit control (completing individual tasks).

Lookahead scheduling. Once the overall schedule is in place, maintain a rolling six-week lookahead schedule that shows what work is to be done in coming weeks and identifies a schedule of milestones that must be hit. Consider the challenges that may arise and plan early to meet them.

Regular work planning. Consider what should be done according to the schedule, what can be done given various constraints in the field, and what will be done after all the constraints are considered. Two-way communication is vital, and optimistic planning is replaced by realistic planning based on evaluation of workers’ ability to reliably achieve their commitments.

Daily huddle (or “toolbox”) meetings. Begin each day with a meeting in which employees and managers provide status reports on work in progress, working together to address any hitches. Increased awareness and joint problem solving improves workflow, boosts morale and fosters a sense of project ownership among workers.

Increased visualization. Use signs, labels and other visible reminders to maintain workers’ awareness of safety, schedule, quality, performance targets and specific required actions.

First-run studies. Look at the various steps in a specified process or task and encourage brainstorming to eliminate wasted steps, experimenting with the resulting ideas and measuring what actually happens. These analyses typically involve videotapes or photos to improve evaluations.

Growing with patience

Make no mistake: Lean construction can, at first, be complicated and time-consuming. So you should understand its principles before you begin a project. (The Lean Construction Institute — www.leanconstruction.org — can help.) Although lean construction emphasizes rapid delivery of value, be prepared to grow with patience.

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