Advanced project management processes have been developed a long time ago. For example, the theory for the widely acknowledged “lean construction” methodology leading to the “Last Planner” production planning system was introduced as far back as 1992. The publication of “Rethinking Construction“, also known as the “Egan Report” in the United Kingdom occurred in 1998. The Egan Report places a strong emphasis on the ideas of “lean thinking to change the construction industry for the better in the UK.
Lean construction has been developed by applying “lean manufacturing” principles and processes into construction. Lean manufacturing in turn stems from the “Toyota Production System (TPS)” developed for the car industry to improve efficiency and productivity and elimination of waste. The International Group for Lean Construction (IGLC) and the Lean Construction Institute (LCI) have been formed to further the development of these principles and the implementation of more efficient project management in the industry by integrating best processes and teamwork.
It seems that very little change in the improvement of productivity and efficiency has happened in practice. New processes and methods have been implemented by some companies in the construction industry with very encouraging results. In general, however, most companies continue to work as they have done for decades or even centuries. Why is it so difficult for the construction industry to adopt and apply new ways of thinking even though the benefits are clearly seen. Technical solutions are adapted, but what about process solutions and information management? Advanced prosesses have been developed, state-of-the-art technology is available, skilled people are available and the required knowledge exists.
It seems that companies within the construction industry are more willing to spend large sums of money on expensive arbitration cases to recover losses, rather than invest the same in developing and improving their processes, technology, organization and above all information management to improve efficiency and productivity. This is always a loss to somebody involved in a building project leading to disputes as one party or another feels that they have been unfairly affected. The executive summary of the “Egan Report” concludes that the construction industry as a whole has low profitability and invests too little in research, development and training. Whether a company is making good profit or a loss, there should always be an interest for the improvement of efficiency, quality and profitability. New processes, such as lean construction, bring a solution to the trilogy of problems encountered in the construction industry: time, cost and quality. In the new way of thinking, the emphasis is on teamwork: working together for the benefit of the project which results in everybody winning. Companies should strive for continuous improvement, teamwork, elimination of waste and improvement in productivity and efficiency.
The change for better in the construction industry requires the combination and integration of the four key functions: process, technology, organization and most importantly the fourth factor of knowlwdge and information management to seamlessly integrate the other three.
Filed under: Construction Data Technology, Construction Process Improvement, Construction Project Management | Tagged: Add new tag, Egan report, IGLC, International Group for Lean Construction, last planner, LCI, lean construction, Lean Construction Institute, lean manufacturing, rethinking construction, Toyota Production System, TPS
Janne Saarikko
Teppo Grén
[...] If you’d like to dig deeper into lean construction, check out Sir John Egan’s “Rethinking Construction.” It was written in 1998 but remains [...]
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