ACritical Reviewof Lean Constructionfor Cost Reductionin Complex Projects
ACritical Reviewof Lean Constructionfor Cost Reductionin Complex Projects
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Leong Sing Wong 1)* and Mohammed Elhaj Alsoufi Mohammed Ahmed 2)
1)
Doctor, Universiti Tenaga Nasional, Malaysia.
* Corresponding Author. E-Mail: [email protected]
2)
PhD Candidate, Universiti Tenaga Nasional, Malaysia. E-Mail: [email protected]
ABSTRACT
Many countries started to apply lean construction and get benefits of lean construction techniques that can
reduce project cost in construction industry, particularly for complex projects. In addition, last planner lean
construction techniques started to be widely used instead of current traditional planning techniques for the
purpose of decreasing the variation in the processes. Importantly, reducing variation in the project processes
can help improve performance and make significant cost savings. Moreover, processes should optimize
predictability and facilitate team work and effective communication among participants. In the current scenario,
lean construction techniques are not reviewed for complex projects. This paper aims to perform a critical review
of lean construction for complex projects.
KEYWORDS: Lean construction, Project cost, Traditional planning techniques, Cost savings, Team
work.
resources, which are already available (Ballard, 2000). manufacturing sector according to fixed position
In addition, planning buffers cannot cope with the production (on-site production). The characteristics of
complexity of projects (it is difficult to match actual construction industry above will end up the project that
progress with the initial plan) in traditional planning is unable to meet the customer objectives in terms of
systems. It creates adversarial relationships between time, cost and quality.
design (engineering), procurement (material supplies, According to lean construction, value can be
prefabrication of components or off-site assembly) and maximized by focusing on the value added activity
assembly on site, in addition to that emphasis on control which can be information, people or shape of materials.
affects human factors and the morale of workers Understanding and improving processes are essential to
(Ballard and Howel, 1997). improve productivity and lean construction provides
Lean thinking is a matter of developing requirements modern process improvement. In addition, it is done
to meet global challenges by minimizing waste, right the first time and as the customer has high
fastening the iteration operation and innovating through requirement on it. Moreover, eliminating waste makes
various production processes to ensure continuous product flow by establishing a rate of flow, thereby
improvement. There are many advantages for adopting synchronizing all the activities as well as focusing on the
lean construction. Firstly, reducing variation in the potential constrains. Pull of a customer can be achieved
project processes will improve performance and make by stopping making anything upstream until needed
significant cost savings. Moreover, processes should downstream and when it is needed, it should be done
optimize predictability and facilitate team work and quickly and with correct quality. Then, pursuing
effective communication among the stakeholders (Li et perfection is done by increasing the flow rate, creating
al., 2017). Mahrani et al. (2012) stated that lean thinking transparency and striving for zero defect. Thus, to make
has attained great success in reducing waste in construction lean, firstly site assembly waste must be
manufacturing industry with a rate of 12%, while the minimized followed by making lean techniques for
rate of waste in construction industry is 57% due to the dynamic construction. On the other hand, non-added
various differences between the two industries. Ballard value can be divided into two main categories. Firstly,
and Howell (1997) stated that manufacturing industry non-value added activity necessary waste as no value is
has controlled production environment and created, thus cannot be eliminated based on the current
customization achieved by modularization and technology, policy or thinking and this violates proper
assembly, while the environment in construction project coordination, regulation, company mandate as
industry is uncontrolled, in addition to that every project well as law (Ballard, 2000). Non-activity pure waste
is unique and is uniquely customized to suit one specific consumes resources, but creates no value in the eyes of
need. Abd Jamil et al. (2016) opined that there is a need the customer and examples can be given in terms of
for a high level of integration between design and waiting time, inventory, rework as well as excess check-
manufacturing, while design and production are treated offs (Marhani et al., 2012) (Fig. 1). On the other hand,
as separate processes in construction industry. Abd Wahi et al. (2016) maintained that flow of processes
Shakur et al. (2016) provided a supporting statement that usually supports conversion processes and examples
manufacturing industry is distinguished by the capacity include transport, storage as well as movement with a
to realize continuous improvement. By comparison, few exceptions, as such processes do not add value. Both
construction industry has low capacity of innovation and conversions and ‘flows’ expend costs and take time. The
continuous improvement. Therefore, in general, objective of this paper is to review the implementation
construction industry is less impacted by ‘lean’ of lean construction techniques in construction industry
production thinking than what may be found in the at various places. The specific focus of the review is on
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Jordan Journal of Civil Engineering, Volume 12, No. 4, 2018
reducing unnecessary cost (waste) throughout the whole environment for workers and increase customer
life of the project in order to reduce production time, satisfaction.
enhance quality, improve wages, enhance safety
Figure (1): Value maximization according to lean construction (Marhani et al., 2012)
Current Planning Method (Conventional Method) paths have relatively small delays that do not influence
for Construction Projects the project overall duration. As discussed before, the
The project management profession is becoming project manager’s role is to control duration by taking
increasingly necessary as construction industry moves necessary action when progress deviates from the
to more integrated and concurrent procurement systems overall project plan (schedule). Cleland and Ireland
for various reasons (Cleland and Ireland, 2007). The (2007) discussed that whilst this approach seems logical,
main focus was on setting cost, time and quality targets it often causes waste and inefficient performance. In
and then meeting these targets. Construction is unique addition, projects are becoming more complex and the
and hence management concepts and tools have to come need to finish projects more quickly makes the task of
from within. Project manager has to do mainly with controlling progress very hard and firefighting often
maximizing efficiency and predictability given the results in higher cost or short cuts (Ballard, 2000).
scenario. Roberts and Wallace (2004) illustrated that
boundaries and “rules of the game” were assumed to be Effective Construction Production Planning Method
fixed, which implies the use of standard forms of (Buffers)
contracts. Project managers along with others would Ballard (2000) elucidated that in manufacturing, the
turn their attention to bringing progress back in line with term buffer often refers to physical stock of raw
the pre-set schedule (PMBOK Guide, 2011). This is materials and work in process, which implies
often done by adding more resources by various ways, incomplete product waiting to be developed further by
such as increasing number of workers, materials and the remaining sub-processes or inventories (finished
hours of work at the expense of meeting cost targets. goods). In the case of construction projects, a buffer can
Ballard and Howell (1997) clarified that non-critical also be represented by the time allocated between the
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A Critical Review… Leong Sing Wong and Mohammed Elhaj Alsoufi Mohammed Ahmed
start of two inter-related activities. Koskela and Huovila (Ballard, 2000). Fig. 2 is concerned with the progress of
(1997) stated that within the context of lean an activity that uses the output of another (For example,
construction, buffer is a waste. Therefore, the more the the delivery of materials or prefab units to the site). In
time allocated, the more the process inflow and it is traditional planning, no buffer is allocated, so
often referred to in construction as work in progress construction starts immediately after delivery and hence
generated (Ballard, 1997). Although the actual delays in subsequent delivery would result in the work
production time may become efficient by the use of force (and all related plants and machines) having to
buffers, the total project duration may be unaffected and wait. The rate of progress is depicted in the line starting
so is cost. The actual productive activities may be at “0” and ending at “end date”. In the case of allocating
leaned, but the waste is still present in the form of a buffer (time between (0) and “delayed start”), the work
buffers (Ballard, 1998). Martens and Vanhoucke (2017) force in charge of this activity would complete the
provided that buffers are not lean and have considerable activity much faster (risk of waiting is limited).
costs associated with them. In this regard, their use may Subsequently, the new activity duration (time between
be a temporary step in gaining data on how long “delayed start” and “end date”) would now represent the
particular tasks actually require when upstream true duration of this activity (no disruptions because
variability and uncertainty are not allowed to affect previous activities are hidden). Once the true
value adding production (Martens and Vanhoucke, productivity level for an activity is determined, the
2017). Of course, inflow variation and uncertainty will planner can reduce the size of the buffer and hence the
always remain in all project management activities overall duration and cost of the project.
regardless of the planning or PM techniques used
Figure (2): Graphical representation to reduce flow variation, then start sooner (Ballard and Howell, 1997)
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Jordan Journal of Civil Engineering, Volume 12, No. 4, 2018
Work planning Making planning for the whole The concept puts emphasis on the
(Winch, 2007) work. work that actually has to be done
to recognize the desirable
outcomes.
Activities identification When it will be done and how It is focused on how an activity
(Winch, 2003) long it will take. can be done and whether it can be
completed within time by the
judgment of an expert who may
be the contractor or the foreman.
Last Planner System for Lean Construction system allows for true inflow variation of each activity
The last planner is a planning system developed by or process, otherwise the risk of disruption and stoppage
Lean Construction Institute to address some of the becomes high. Ballard (2000) stated that the system
problems of the traditional planning system (Ballard, emphasizes the need for a mean of assessing the
2000). This also draws on the same idea of shielding performance of the various levels of the plans. The
production from upstream variation and uncertainty and system should determine where to intervene. Brioso et
introduces upstream variation and uncertainty as well as al. (2017) illustrated that the match between output and
promoting practices that are closely related to the lean directive at each level should be measured and causes
construction principles originally conceived by Toyota for mismatch must be understood. For instance, the
(Ballard, 2000). Shange and Sui Pheng (2014) stated match between ‘will’ and ‘did’ is measured by percent
that it is notable that the principle of the last planner plan completed (PPC). In case of a mismatch, the last
system is to pull production down from the master planner must investigate the sources of the problem and,
program as opposed to the use of the master program to in particular, these mismatches could not have been
push production forward. In addition, the system caused by the unavailability of resources or work in
encourages the application of pull instead of push. In progress. Similarly, project level plans can be based on
other words, downstream activities determine the size of true activity durations. Future mismatches between
workable backlog. The resources, such as materials to progress and these plans must be thoroughly assessed.
be delivered or progress required from upstream The system therefore emphasizes measurement of
activities, are determined by the progress of downstream performance and continuous improvement.
activities, which means that activities are dependent on Brioso et al. (2017) described that last planner can be
these resources (Nesteby et al., 2016). This pull type of identified as a person with the expert or specific
system ensures that only the necessary resources and knowledge of how to actually produce the output that is
work are being delivered, hence reducing the need for required by the specific project task and the person can
physical buffers (storage space or time) (Ballard, 2000). be a sub-contractor, a manager or a foreman. Shange and
Managers applying this concept must ensure that the Sui Pheng (2014) stated that the system requires the last
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A Critical Review… Leong Sing Wong and Mohammed Elhaj Alsoufi Mohammed Ahmed
planner to decompose larger tasks into specific work and quality. Kelly et al. (2004) claimed that strategic and
assignments that can be given to individual construction tactical decisions taken by the client and the design team
operatives or teams to be completed in a relatively small are audited against the client’s value system at targeted
time window such as 1-2 weeks. The assignment stages throughout the development of a project and/or
concept puts emphasis on the work that actually has to the life of a facility. This is comprised of manufactured
be done instead of creating a further plan that simply components, where components form elements,
recognizes the outcome that is desired (Ballard, 2000). elements form spaces, spaces reflect corporate
Nesteby et al. (2016) provided that as work progress and organization and client strategy as shown in Fig. 3. Kelly
experience increase, the last planner is able to generate et al. (2004) described that value engineering (technical
a better assignment through a process of reflection, level) is an organized approach to provide the necessary
learning and corrective actions. Table 1 describes functions at the lowest cost without compromising
differences between the tradition planning method and quality and it is concerned with both client and
the last planner system. contractor and applicable at technical level to improve
design solutions. Kelly et al. (2004) stated that both
Evaluation of Lean Construction Techniques value management and value engineering are conducted
Lean construction principle can only be applied fully through a workshop at an early stage of the project.
and effectively in construction by methods focusing on Major stakeholders must attend the workshop to
improving the whole process. This means that all parties recognize the client objectives, participate in making the
must be committed, involved and work to overcome client value system and keep monitoring the
obstacles that may arise from traditional contractual implementation of the client value system through the
arrangements. In addition, data collection must be whole life cycle of the project. However, VM is more
carried out before evaluating lean techniques. Li et al. likely to be found as rigid application of set tools and
(2017) used both interview and questionnaire in various techniques to engineer out excess cost without due
case studies for their evaluation. Accordingly, consideration of value or process (Rashwan et al., 2016).
evaluation of lean construction has been conducted It is frequently viewed as extra to the construction
utilizing both methods. process rather than an integral part of it and it is often
called value engineering or sometimes value analysis
Value Management (VM) for Eliminating (Marhani et al., 2013). Rashwan et al. (2016) stated that
Unnecessary Cost through the Whole Life Cycle Cost VE can be carried out by providing sustainable design in
of the Project construction industry through improving thermal
Rashwan et al. (2016) illustrated that value insulation by 55% as well as reducing the cost for each
management in construction is a proactive, creative and activity (item) at the construction stage by 40%. Fig. 4
problem-solving service. It involves using a structured, shows the relation between cost and time according to
multi-disciplinary, team-oriented approach to make VE. It mainly shows the cost savings through the
explicitly the client’s value system using functional application of VE even before the design phase without
analysis to expose the relationship between time, cost compromising quality through the design phase.
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Jordan Journal of Civil Engineering, Volume 12, No. 4, 2018
Spaces
Strategic level VM
Technical level VE
Elements
Building structure
Components issues
Figure (4): Eliminating unnecessary cost according to applying VE through the design phase
(Rashwan et al., 2016)
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A Critical Review… Leong Sing Wong and Mohammed Elhaj Alsoufi Mohammed Ahmed
Off-site Construction Process (Concurrent widely used in off-site construction. Fadeyi (2017)
Engineering) discovered that it helps the design and construction team
Applying lean construction can be done at different to collaborate on a coordinated model, thereby
stages according to the project phases in construction providing team members with better insight into how
industry (Marhani et al., 2013). However, there is their work fits into the whole project, which ultimately
considerable scope for the application of lean thinking helps them ensure efficiency. Mutual exchange of data
to remove waste from the design process. Ballard and between all stakeholders throughout the whole life cycle
Howell (1997) found that system building techniques of the project is a crucial element for successful
involve reliance upon standardization of components implementation of BIM. However, Tauriainen et al.
and prefabrication of building sub-assemblies. System (2016) clarified that BIM requires more training (for
building techniques are now generally viewed as failure, professionals and skillful people) to accept BIM
since many of the buildings they delivered were deemed technology instead of the current design methods such
socially unacceptable. Koskela and Huovila (2000) as CAD. Table 3 shows the advantages of adopting
provided that standardization and prefabrication, prefabricated buildings and building information model
together with dimensional coordination, remain key in construction industry based on several published
features of almost all modern construction works. The works.
production engineering function which can be seen in
conventional manufacturing industries assumes a far Supply Chain Management for Saving Project Cost
greater role than we are used to see in construction in the Design and Production Processes
(Marhani et al., 2013). Moreover, this implies that the Chen (2016), Marhani et al. (2013) and Abd Shakur
design process and even the design philosophy of et al. (2016) illustrated that SCM is the management of
building is radically transformed so that there is greater upstream and downstream relationships with suppliers
emphasis on design for production than on what may be and customers to deliver superior customer value at least
considered as more conventional design attributes such cost to the supply chain as a whole. Marhani et al. (2013)
as aesthetic form (Matti Tauriainen et al., 2016). Li et al. justified that supply chain management depends on the
(2014) explained that almost all construction projects following strategies. Firstly, a high level of joint strategy
involve a high degree of mechanization and include an development with different organizations and firms,
‘assembly’ process that combines numerous small or both upstream and downstream. In addition, there is a
large factory-produced components or sub-assemblies common purpose agreement between separate firms and
and integrates them to yield a ‘customized’ or unique organizations in the supply chain. There are also jointly
product. Currently, construction industry is at the earlier agreed common goals amongst the members of the
stage of building information model (BIM). supply chain as well as mutual dependence for all firms
in the supply chain on the success of achieving those
Building Information Model (BIM) agreed common goals. Strategic partnerships and
Abanda (2017) identified Building Information strategic alliances that involve separate firms (who
Modeling (BIM) as a process of generating and would normally be in competition with one another)
managing building data during the project life cycle. which allow resources, cost, knowledge and risks to be
Typically, it uses three-dimensional, real-time and shared may be the keys to moving forward in these
dynamic building modeling software to increase important areas. This fundamentally and radically
productivity in building design and construction. Li et changes the nature of competition (competitive market).
al. (2014), Cao et al. (2017) and Abanda (2017) Table 2 shows the successful integration in accordance
explained that BIM is the most current advanced method with supply chain management.
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Jordan Journal of Civil Engineering, Volume 12, No. 4, 2018
Lean Construction Technology (Just In Time) (JIT) et al. (2016) mentioned that it utilizes the actual required
Just In Time (JIT) is in widespread use in the resources (pull production) according to lean last
industry’s supply chains in case of manufacturing of planner system rather than forecasting resources as in
construction components and is a vital element. In order traditional methods. Therefore, overproduction waste
to deliver lean manufacturing, the suppliers' network can also be eliminated. Total Quality Management
must be improved (Nowotarski et al., 2017). Zhang and (TQM) must be adopted upstream and downstream to
Chen (2016) stated that the main reason for adopting JIT ensure that the activities achieved are of high quality and
technology in construction is to fasten the flow of that unnecessary processes (defects) are eliminated.
activities and make it move smoothly throughout the Nowotarski et al. (2017) stated that huge efforts must be
construction process. Accordingly, it eliminates waiting implemented to encourage construction industry to
as well as the transportation waste between activities, adopt the same lean JIT systems, often company-wide,
because it focuses on finishing each activity in the rather than being solely concerned with that part of the
project with its required resources in terms of personnel, suppliers’ operations that impacts the manufacturer.
materials as well as equipment (Li et al., 2017). Richard
Evaluation of
Level of
Research work Advantage implementation in
implementation
construction industry
1. Abanda (2017) Project level 1. Controlled production 1. Highly used in almost all
environment achieved by modern construction works.
2. Koskela (1997) modularized assembly.
7. Minimization of wastages.
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A Critical Review… Leong Sing Wong and Mohammed Elhaj Alsoufi Mohammed Ahmed
Table 3. Successful integration according to SCM, modified by Abd Shakur et al. (2016),
based on several published works
Total Quality Management (TQM) for Improving process, which are intended to create known or specific
Construction Productivity quality characteristics. QA and QC systems are
Li et al. (2017), Marhani et al. (2013), Dale et al. subjected to internal and external audits. In addition,
(2007) and Terziovski (2007) opined that quality some kind of audit process is essential if any QA or QC
thinking is now almost universally accepted in system is to operate effectively and ensure continuous
mainstream construction activities and that the majority improvement as shown in Fig. 5 (PMBOK Guide, 2011).
of enterprises are using TQM. Dale et al. (2007) Li et al. (2017) highlighted that TQM eliminates
illustrated that quality control (QC) is a collective term unnecessary processes in construction industry and
applied to a range of activities and techniques within the increases productivity.
Planning
quality for the Quality assurance
project by using progress
reports and
non-conformance
Continuous
reports (Quality
improvement
Total Quality Manager)
Management
Figure (5): Total quality management components in construction (PMBOK Guide, 2011)
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Jordan Journal of Civil Engineering, Volume 12, No. 4, 2018
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Table 5. The degree of adopting lean construction techniques in construction industry based on
several published works
Technique
TQM JIT LPS BIM KPI VM CE 6S SCM
Reference
Li et al. (2017) Very Medium High Very - Very high High Very -
high Low high
Nowotarski et al. - Very Not Very - Medium Low High -
(2016) high used Low
Abd Shakur et al. - - - - - - - - Very
(2016) high
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Jordan Journal of Civil Engineering, Volume 12, No. 4, 2018
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A Critical Review… Leong Sing Wong and Mohammed Elhaj Alsoufi Mohammed Ahmed
Nesteby, A.I., Aarrestad, M.E., Lohne, J., and Bohne, R.A. Schoenwitz, M., Martens A., and Vanhoucke, M. (2017). "A
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project management body of knowledge". Fifth Edition, "Critical review of construction waste control practices:
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