Modern Construction: Lean Project Delivery and Integrated Practices (Industrial Innovation)

495 Pages·2010·3.69 MB·English

by  Lincoln H. Forbes

Modern
Construction
Lean Project Delivery
and Integrated Practices
Lincoln H. Forbes
Syed M. Ahmed
Boca Raton London New York
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Library of Congress Cataloging-in-Publication Data
Forbes, Lincoln H.
Modern construction : lean project delivery and integrated practices / Lincoln H. Forbes, Syed M.
Ahmed.
p. cm. -- (Industrial innovation series)
Includes bibliographical references and index.
ISBN 978-1-4200-6312-7 (hardback)
1. Building. 2. Lean manufacturing. 3. Construction industry--Management. 4. Construction
industry--Cost control. 5. Project management. I. Ahmed, Syed M. (Syed Mahmood), 1960- II. Title.
TH145.F67 2011
690.068--dc22 2010034911
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© 2011 by Taylor and Francis Group, LLC

To
My wife Laurel Forbes
& son Richard Forbes
For their patience and support
From Lincoln H. Forbes
© 2011 by Taylor and Francis Group, LLC

Contents
Comments by Greg Howell, Co-Founder of the Lean Construction Institute ..................xxv
Preface ........................................................................................................................................xxvii
What’s in This Book .........................................................................................................xxviii
Acknowledgments ....................................................................................................................xxxi
Authors .....................................................................................................................................xxxiii
1 Overview of the Construction Industry ............................................................................1
Background on Industry Performance .................................................................................1
Reasons for Low Productivity................................................................................................2
Need for New Approaches to Construction ........................................................................3
Causes of Poor Construction Industry Performance ..........................................................5
Categories of Construction .....................................................................................................7
Who Are the Parties Involved in Construction? .................................................................8
Project Delivery Methods .......................................................................................................8
Design–Bid–Build Contracts .............................................................................................9
Design–Build Projects ......................................................................................................11
Engineer–Procure–Construct (EPC) Projects ...............................................................13
Design–Construction Management (CM) Contracts ...................................................13
Design–Agency CM Contracts ........................................................................................14
CM-at-Risk Contracts .......................................................................................................15
Fast-Track Construction ...................................................................................................17
Partnering ..........................................................................................................................17
Relational Contracting/Lean Design and Construction .............................................18
Forms of Contract ..................................................................................................................20
Fixed Lump-Sum Price .....................................................................................................20
Guaranteed Maximum Price ...........................................................................................20
Cost Plus a Fee ...................................................................................................................20
Fixed Unit Prices ...............................................................................................................20
Advantages and Disadvantages of Different Forms of Contracts ..................................21
Strategies for Improving Construction Performance .......................................................21
Questions for Discussion ......................................................................................................22
References ...............................................................................................................................22
2 Productivity and Performance Measurement in Construction ...................................23
Definition of Productivity .....................................................................................................23
Importance of Productivity ..................................................................................................24
Productivity Trends in the United States ...........................................................................25
Lean Construction: Impact on Productivity ......................................................................26
Potential for Productivity Improvement ............................................................................26
Factors Affecting Construction Productivity ....................................................................28
Ineffective Management Practices ..................................................................................28
Focus on Inspection ..........................................................................................................28
Growth of Specialization .................................................................................................28
Unclear Performance Standards .....................................................................................29
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x Contents
Growing Emergence of Subcontracting .........................................................................29
Slow Adoption of Innovation ..........................................................................................29
Lack of Benchmarking .....................................................................................................29
Crisis Orientation ..............................................................................................................29
Labor Shortages .................................................................................................................30
Project Uniqueness ............................................................................................................30
Technology Impacts ..........................................................................................................30
Real Wage Trends ..............................................................................................................31
Inadequate Construction Training .................................................................................31
Productivity Ratios ................................................................................................................32
Total Productivity .............................................................................................................32
Construction Productivity Measurement ......................................................................34
Construction Progress Measurement .................................................................................34
Units Completed ...............................................................................................................34
Incremental Milestone ......................................................................................................34
Start/Finish ........................................................................................................................35
Supervisor Opinion ..........................................................................................................35
Cost Ratio ...........................................................................................................................35
Weighted or Equivalent Units .........................................................................................36
Earned Value ......................................................................................................................36
Earned Value Management (EVM) Application ................................................................36
Productivity Estimation Based on Worth ..........................................................................37
Computing PAR Values ....................................................................................................38
Using PAR Values to Prioritize Corrective Action .......................................................39
Using PAR Values in Project Management ...................................................................39
Setting Up a Performance Measurement Program ......................................................40
Lean Construction Measurement ...................................................................................41
Transitioning from Productivity Measurement to Performance
Improvement and Lean Construction ................................................................................41
Guidance from the Malcolm Baldrige National Quality Award ...................................43
Questions for Discussion ......................................................................................................43
References ...............................................................................................................................43
Bibliography ............................................................................................................................44
Web Sites .................................................................................................................................44
3 Foundations of Lean Construction ...................................................................................45
Defining Lean Construction ................................................................................................45
Lean Theory ............................................................................................................................45
The Toyota Experience: Building on Ford’s Principles .....................................................47
Toyota’s Production System .............................................................................................49
Just-In-Time (JIT) Concept ...............................................................................................50
Toyota’s Way.......................................................................................................................50
Accomplishing a Lean State .................................................................................................51
Origins of Lean Construction ..............................................................................................52
Adoption of Relational Contracting ....................................................................................55
Lean Design and Construction ............................................................................................57
Deficiencies in Traditional Construction Methods ...........................................................58
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Contents xi
Philosophical Differences between Lean Construction and Traditional
Construction ...........................................................................................................................59
Barriers to Applying Manufacturing Methods to Construction ....................................60
Characteristics of Lean Construction .................................................................................60
Lean Principles ..................................................................................................................61
Value ....................................................................................................................................61
Value Stream ......................................................................................................................62
Value Stream Mapping .....................................................................................................62
Flow .....................................................................................................................................62
Pull ......................................................................................................................................62
Perfection ............................................................................................................................63
Systems Perspective of Lean ................................................................................................63
Description of System Components ...............................................................................63
Move Time .....................................................................................................................63
Wait Time ......................................................................................................................64
Setup Time ....................................................................................................................64
Process Time .................................................................................................................64
Reducing or Eliminating Waste ......................................................................................64
Other Categories of Waste ...............................................................................................65
Lean Construction Fundamentals .......................................................................................66
Three Connected Opportunities.....................................................................................67
Five Big Ideas .....................................................................................................................67
Questions for Discussion ......................................................................................................69
Appendix: ConsensusDocs ..................................................................................................69
ConsensusDocs Endorsing Organizations ....................................................................70
References ...............................................................................................................................70
Bibliography ............................................................................................................................72
4 Lean Process Management .................................................................................................73
Operation of The Lean Project Delivery System™ ...........................................................73
Structure of The Lean Project Delivery System ................................................................74
Project Definition ..............................................................................................................75
Establishing Design Criteria .......................................................................................76
Lean Design Phase .......................................................................................................76
Lean Supply .......................................................................................................................77
Lean Assembly ..................................................................................................................77
Production Control and Work Structuring ...................................................................78
Lean Design Details ..........................................................................................................78
Lean Design Management ....................................................................................................80
Designing for Lean Operations ...........................................................................................80
Sustainability Issues .........................................................................................................81
Set-Based Design ...............................................................................................................82
Target-Value Design ..........................................................................................................83
Last Planner® System ............................................................................................................86
Master Schedule ................................................................................................................86
Look-Ahead Schedule .......................................................................................................87
Weekly Work Plan .............................................................................................................87
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xii Contents
Daily Work Plans ..............................................................................................................87
Requirements for Successful Application ......................................................................88
Creating a Support System for Managing the Lean Process ...........................................89
Work Structuring ..............................................................................................................90
Workable Backlog ..............................................................................................................90
Process Steps in The Last Planner System of Production Control ..................................91
Comparison with Traditional Planning and Scheduling ............................................92
Look-Ahead Planning ......................................................................................................93
Commitment Planning.....................................................................................................93
Master Schedule .....................................................................................................................94
Master and Phase Planning .............................................................................................95
Reverse Phase Scheduling ...............................................................................................95
Comparison between Push Systems and Pull Systems ...............................................95
Look-Ahead Schedule .......................................................................................................96
Weekly Work Plan .............................................................................................................98
Commitment Reliability ............................................................................................100
Daily Work Plan ..............................................................................................................100
Constraint Analysis ...................................................................................................100
Benefits of Constraint Analysis and Management Process .................................101
Activity Definition Model ...................................................................................................101
Use of Buffers ...................................................................................................................103
Visual Management .............................................................................................................104
Questions for Discussion ....................................................................................................105
References .............................................................................................................................105
Bibliography ..........................................................................................................................106
5 Lean Process Measurement and Lean Tools/Techniques ...........................................109
Measuring Lean Construction Performance ...................................................................109
Observations on Commitment Reliability .......................................................................109
Use of Statistical Process Control ......................................................................................110
Learning: Reasons Analysis and Action ..........................................................................111
Comments on the RNC ..................................................................................................112
Five-Why Analysis ..........................................................................................................112
Rolled PPC .......................................................................................................................113
Plus-Delta Analysis .........................................................................................................114
Lean Performance Measures ..............................................................................................115
Lean Tools and Techniques ................................................................................................116
How Do Lean Tools/Techniques Work? ......................................................................116
First-Run Studies ........................................................................................................116
Value Stream Mapping ..............................................................................................116
Value Stream Mapping at Tweet/Garot Mechanical Inc. ...............................................117
Future-State Map .................................................................................................................119
Kaizen Methodology ...........................................................................................................119
Roles in the Kaizen Process ...........................................................................................121
Typical Kaizen Structure ...............................................................................................122
Five-Step Plan (5S) ...............................................................................................................123
A3 Report ..............................................................................................................................124
Kanban and Lean Construction ........................................................................................127
Supply Chain Management and Lean Construction ......................................................127
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