2017 International Conference on Advanced Mechatronics, Intelligent Manufacture, and Industrial Automation (ICAMIMIA)

Improving project efficiency using Lean Construction

Putu Dana Karningsih, Dewanti Anggrahini, Mohammad Busyral Karim, Rizki Adhitama
Industrial Engineering Department
Institut Teknologi Sepuluh Nopember (ITS)
Surabaya, Indonesia
[email protected]

Abstract— Common problems on construction or project one way to accomplish that by applying lean construction
based industry are frequent deadlines delays, budget overruns approach accordingly. This study are aiming to apply lean
and improper quality. Lean construction is one of approach for construction for two projects at a state owned and a private
improving this situation by identifying and formulating companies in Indonesia. Both companies suffer similar
recommendation to eliminate or reduce waste. It started by using problem that is lateness on their projects which then leads to
Value Stream Mapping to understand the flow of information additional unexpected cost.
and material thus waste can be identified. Then, five why’s
analysis is utilized to get the root cause of waste. To formulate
recommendation, the root cause of waste is ranked according to II. LITERATURE REVIEW
risk priority number. Finally, suggestion for reducing or Lean philosophy was firstly applied by an automotive
eliminating these root cause of waste are provided accordingly. company from Japan (Toyota). Lean concept focuses on
These approach is applied in two different organizations, an customer value based on customer's perspective. This concept
engineering procurement construction industry and a building believes that by identifying and eliminating waste can fullfil
construction company. The result of utilization of lean customer expectations. The lean principles consist of: (1)
construction approach shows that the critical waste in the
Specify Value, (2) Identify whole value stream, (3) Flow, (4)
engineering procurement construction industry are waiting and
correction. While in the building construction company, waiting
Pulled, and (5) Perfection [5].
is also identified as the critical waste and waste due to over Construction is a type of production system associated with
processing. For both cases, root cause of waste of waiting have projects and can be categorized as a fixed-position
the highest risk priority number. Thus, specific recommendations manufacturing where the product is in a fixed position and the
to reduce these root cause are suggested accordingly. product is being produced/constructed in the same place until
the product is finished and delivered to the customer. Lean
Keywords—lean construction; waste; root cause analysis, value
construction is the process of implementing lean philosophy in
stream mapping
construction companies Abdelhamid and Salem [6] propose
definition of lean construction as “a holistic facility design and
I. INTRODUCTION delivery philosophy with an overarching aim of maximizing
Construction industry/sector has a vital contribution for value to all stakeholders through systematic, synergistic, and
economic development. Every construction work should continuous improvements in the contractual arrangements, the
perform its operation in effective and efficient manner, product design, the construction process design and methods
however it is not easy to achieve. Most if not all construction selection, the supply chain, and the workflow reliability of site
industry suffer deadlines delays, budget overruns and improper operations”. Similar with lean production, there are several
quality [1]. In general, these problems are happened due to tools that is commonly utilized on lean constructions, such as:
poor project management [2]. Construction can be defined as value stream mapping (VSM), root cause analysis (RCA) and
“a complex production of a one-of-a-kind product undertaken failure mode effect analysis (FMEA). These tools is used to
mainly at the delivery point by cooperation within a multi- identify waste and its source, and to prioritize improvement
skilled ad-hoc team” [3]. Based on this definition, construction plan.
can be considered as a production. According to a study by Value stream mapping (VSM) is a tool that is adapted from
Lean Construction Institute [4], approximately 70% of a method to map Toyota's production system and is used to
activities on construction project are non value added activities describe the overall system and its value streams. By using
(waste). Therefore, lean approach can be utilized to improve VSM, the flow of material and information that occurs in a
construction efficiency by eliminating or reducing waste. The production system can be mapped [7]. In addition, this tool also
most recent application of lean production on construction serves as a tool to identify/locate where waste can be occured
project in Polland is reported by [1]. The benefit of and shows the relations between the flow of information and
implementing lean on this study is not only cost saving but also material/product. VSM is developed by observing the whole
on easier access for material in storage area, less transportation process and also conducting interview/discussion with the
and improvement on safety. person in charge (supervisors/managers). There are several
Indonesian government medium term development plan for steps to be followed to develop VSM , they are [8]: (1)
2015-2020 is focused on infrastructure development. It determine one product family to be examined/mapped, (2)
includes several power plan and toll road projects. As draw/ current state of selected product and identify waste/non
governments is aiming at lowering the costs for these project, value added activities, (3) define ideal state of selected product

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value stream, (4) draw a future state map for selected product, incoming material from supplier, allocation of human resources
(5) create and implement an action plan to improve the existing and detail work instructions. Root causes of these waste are
value stream map to achieve the future state. Waste in investigated using five why’s analysis as is shown in table I
construction can be defined as "the difference between the and table II. RPN for each root cause of waste is then
value of those materials delivered and accepted on site and calculated based on Project Manager judgement for likelihood
those used properly as specified and accurately measured in the and consequences score (table III).
work, after the deducting cost saving of substituted materials
and those transferred elsewhere" [9] . Walbridge Aldinger TABLE I. FIVE WHY’S ANALYSIS FOR WASTE OF WAITING OF COMPANY
modifies seven waste proposed by Ohno into eight waste that X PROJECT
spesifically occures on construction project [8], namely : (1)
Sub
Over-Production, (2) Inventory, (3) Transportation, (4) Why 1 Why 2 Why 3 Why 4
Waste
Waiting, (5) Motion, (6) Over Processing, (7) Correction, and Lack of
(8) Not Utilizing Human Resources. While Bossink and Incorrect
alignment
Brouwers [10] identify sources of waste in construction Incorrect
selection of
of job
Work processes details
projects are originated from design, procurement, materials outcome is
work method
between all
handling, operation, residual or other activities. Re-work not meet parties
with Lack of
Root Cause Analysis is a structured evaluation method to specification
Unclear
regular
identify root cause of an undesired outcome and also steps Error of instruction /
briefing
worker misscommunic
needed to prevent recurrence of undesired outcomes. To create ation
with
workers
a root cause analysis, it can be done using asking “why” five Sudden
times or broadly known as five why’s analysis [11] . After Re- changing/ad
knowing the root cause of the waste, next step is to determine design of ditional
the most significant source of waste as there are potentially work project
details detail from
more than one source of waste. The significant level of cause user
of waste is measured by using Risk Priority Number (RPN) Improper Sudden
calculation that is usually utilized in FMEA. RPN calculation Re- incoming / changing/
in FMEA is based on occurence (likelihood) and severity purchase purchased additional
of material to project
(consequences) of a failure event. While for this research, the detail
material
similar calculation is applied by multiplying occurence of specification from user
source of waste with severity of waste. Likelihood and
consequences level is determined according to expert TABLE II. FIVE WHY’S ANALYSIS FOR WASTE OF OVER PROCESSING OF
judgement. Likelihood is divided into five scales: (1) rare, COMPANY X PROJECT

with less than 1% probability, (2) unlikely, 1-5 % probability, Sub Waste Why 1 Why 2 Why 3
(3) possible, 15-50 % probability, (4) likely, 50-70% Incorrect
probability and, (5) almost certain, > 70% probability. Waiting for procurement
Similarly, consequences is also divided into five scales: (1) incoming Lateness of
planning
insignificant, low impact, be able to ignore, (2) minor, low Sudden
material delivery from
changing/
impact, be able to repair, (3) moderate, effect goal to achieved, from suppliers Material
additional
(4) major, loss of production capability and, (5) catastrophic, suppliers replacement
project detail
big impact, loss of profit. RPN is then used to categorize in from user
three levels, namely: (a) Red (major) (b) Yellow (moderate), Waiting for Improper worker
Shortage of
allocation of relations
and (c) Green (minor)[12]. workers
workers
management
Sudden
Waiting for
III. APPLICATION OF LEAN CONSTRUCTION changing/
detail work additional project
instructions
In this paper, lean construction approach is applied for a detail from user
building construction project of a private company (company
X) and a power plant component project of a state owned TABLE III. RANKING OF ROOT CAUSE OF WASTE ON COMPANY X PROJECT

company (company Y). Both projects are located in Surabaya, Root cause of waste Likelihood Consequences RPN
East Java, Indonesia.
Sudden changing /
Company X project is to build an government office additional project detail 2 5 10
from user
building project located at East Surabaya. The most significant
Improper worker
problem in this project that indicates occurrence of waste is 3 4 12
relations management
delay in several activities which leads to increase of project Incorrect procurement
costs. Based on VSM analysis and interview with five 2 3 6
planning
company representatives (one project manager and four Lack of alignment of job
4 4 16
supervisors), there are two major waste, they are: over details between all parties
processing and waiting. Waste of over processing is occured in Lack of regular briefing
4 4 16
with workers
term of re-work, re-design of work details and re-purchase of
material. Waste of waiting is happened in term of expecting

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 Company Y has an Engineering Procurement and company Y in Surabaya. Company X undergoes waste of
Construction (EPC) division that responsible for a power plant waiting and over processing while company Y has waste of
component project. This project consists of four main steps, waiting and correction. It is recommended for company X to
that is: fabrication, machining, assembly, and testing. After conduct regular meetings with its stakeholder to improve
VSM analysis, two major waste (i.e. waiting and correction) communication and coordination. As for company Y, it is
are identified. Then, by using five analysis, root sources of suggested to have a sound supplier database with decision
waste are detected and then RPN is calculated (table IV). support system for supplier selection.

TABLE IV. RANKING OF ROOT CAUSE OF WASTE ON COMPANY Y PROJECT ACKNOWLEDGMENT

Root cause of waste Likelihood Consequences RPN This research publication is funded by Lembaga Penelitian
Improper management 4 5 20 dan Pengabdian kepada Masyarakat (LPPM) - Institut
of supplier database Teknologi Sepuluh Nopember (ITS) Surabaya Indonesia.
Difficulty to apply 4 4 16
permit
Worker error 3 4 12
Improper utilization of
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