“LEAN SIX SIGMA REDUCES TIME VARIABILITY IN RESILIENCE-DRIVEN / HIGH RELIABILITY CONSTRUCTION ORGANISATIONS.”

ENSCHEDE, 24-01-2013

Dimitrios Kordas (M-CME/s1231901)

COURSE: MARKETS INNOVATION AND ORGANIZATIONS (195810100)

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POSITION

From the Academia to the Industry

To whom to address? All scale construction firms National institutes of Construction Management & Construction

Technology

Why to create a new working philosophy? Construction is too big to fail! Innovating only within the organizations, not without!

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PROBLEM

The construction suffers frequently from: fragmented supply chains lack of process transparency poor knowledge and communication management lack of industry standards changes in designs, scope, and work practices cost overruns frustrating delays culture of mistrust and opportunism moral hazards

(source: Vrijhoef, 1998) 24-01-2013 4

CHANGE PROBLEM WASTE ROUTE CAUSES

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POSSIBILITIES

Value Engineering V-ModelProduct Life Cycle

Risk classification matrix

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IS IT ENOUGH?

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All methods do not count systematically the faults done

No opportunity for categorization of route causes

Lack of power to explain the production of defects Shift for new managerial skills model

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NAMING THE PAIN

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PROPOSITION

Eliminate Waste (muda)

Eliminate Variability (mura)

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HOW TO IMPLEMENT?

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Lean process: Improvement Method

6 Sigma: DMAIC procedure

High Reliability Culture and Training

1. Customer Value2. Value stream3. Material and info

flow4. Customer pull

product5. Optimize process

1. Define Problem2. Measure3. Analyze faults4. Improve5. Control

1. Stocking times and inventory

2. Shipping delays3. Checking 4. Assembly speed5. Experience

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BARRIERS AND RISKS

Obstacles Understand when the 6σ approach is applicable and when not Test the approach before applying Engage employees and partners on changes Use metrics to evaluate personnel’s adaptation Senior executives must participate Integrate correctly… the 2 approaches Educate for constant education and improvement

Find the Balance, not always easy!

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SUCCESS STORIES

PROJECTS AS COLLECTIVE ENTREPRISE

- Financial incentives- Project

optimization

PROJECTS AS PRODUCTION SYSTEMS

- Changing the works structure

- High Reliability Practices

IMPECCABLE COORDINATIO

N- Workflow

- Human capital- Innovation