Lean Construction Management (LCM) - Internal processes and measuring the value of Lean

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European Network of Construction Companies for Research and Development

ENCORD 5th Lean Construction Workshop | 21-22 March

2012

System / method to calculate the value of Lean in construction.

Lean Construction Management (LCM) - Internal Processes and measuring the value of Lean (Wim van den Bouwhuijsen)

Wim briefly summarized the topics and results of the previous ENCORD Lean Construction Management meeting before presenting and discussing his PhD-work. The focus was on a discussion about the way the Value of Lean management would/should be calculated for Clients, for companies and for the Supply Chain.

Wim touched on the criteria used by the automobile industry, as Womack & Jones

described in their research and book “The Machine that changed the world” and discussed with participants, how this concept could be “translated” to the construction sector.

(Alan Hodges provided a brief summary of Womak & Jones’ Lean measures, see list at the end of this document)

Central (main) questions include:

 What is the performance of a traditional managed project versus a lean managed project?

 Indicators and how to measure (“How to measure? How can you count it?”)  Which dimensions are appropriate?

 How can we compare them?  Are they interdependent?

To discuss these topics, the group split into three smaller working groups, focusing on 1) civil works, 2) turn key construction and 3) infrastructure and roads. For each area, the participants discussed how to measure

 Productivity  Quality of work  Quality of design

 Customer view / satisfaction.

The participants presented the rusults of the break out session. Wim will summarize the discussion in detail and will present the results at the next workshop.

Some of the first findings are presented in the table below:

Civil Works Turnkey Construction Roadworks & Infrastructure

Productivity -activities mh/unit -Cost per unit (eg KM)

President Prof. ir. Ger Maas Royal BAM Group, The NetherlandsGeneral Secretary Dr. Jens-Peter Grunau ENCORD

Vice-President Claude Dumoulin, Bouygues Construction, Francejens-peter.grunau@zueblin.de c/o Ed. Züblin AG, Albstadtweg 3 Vice President Juan Elizaga Corrales, Ferrovial Agroman, Spain Tel +49.711.7883.247 D-70567 Stuttgart, Germany Vice President Menno de Jonge, Ballast Nedam, The NetherlandsFax +49.711.7883.9339 http://www.encord.org

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European Network of Construction Companies for Research and Development

ENCORD 5th Lean Construction Workshop | 21-22 March

2012

-% savings below target costs

-unit per day

-are the plants or machines being used (eg fuel consumption, hours of operations)

different projects might have to use conversion factors to make it comparable Quality Work Rigorous recording of non

conformance numbers and €

Cost of / number of non conformance

costs of defects / project cost

Quality Design number of changes deliverables (drawings, specs, …) on time errors on drawings (->ask designers)

offsite fabrication (value of work done off site % of target cost)

customer – has paid on time

Customer view 0504324842 - Construction time (are milestones met)

- quality (number of defects)

- Cleanliness of site (5S audit- is there a continuous improvement? )

- budget -claims due to disruption of works - reliability (percentage plan completed ppc value) - safety (number

accidents.)

- culture (what are you doing to improve? What systems / approaches are

- Percentage of return customers

- percentage of PQ that are accepted

- are contractors involved at the concept stage of projects? Early contractor involvement (ECI)

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European Network of Construction Companies for Research and Development

ENCORD 5th Lean Construction Workshop | 21-22 March

2012

you using)

- are you using prefab components

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