modern construction : lean project delivery and … (5s) 123 a3report 124 kanbanandleanconstruction...

Modern

ConstructionLean Project Delivery

and Integrated Practices

Lincoln H. Forbes

Syed M. Ahmed

CRC PressTaylor & Francis CroupBoca Raton London New York

CRC Press is an imprint of the

Taylor & Francis Croup, an informs business

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

ix

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


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

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


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

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


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 Ill

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 124Kanban and Lean Construction 127

Supply Chain Management and Lean Construction 127

Contents xiii


References 130

Bibliography 131

6 Lean Construction Applications 133

Prerequisites for Lean Design and Construction 133

Organizing Lean Construction 134

Actions for Change 136

Leadership's Role 136

Leading Lean with Passion 137

Training the Work Force 137

Need for Training at Project Inception 138

Duration of Coaching 139

Sustaining Lean Initiatives 139

Qualities of a Lean Coach 140

Lean Coaching 140

Details of the Three As 142

Awareness 142

Acceptance 144

Action 144

Case of Ready Mechanical 144

Debrief of the Ready Mechanical Case 146

National Builder 146

Debrief of the National Builder Case 147

Examples of Lean Project Delivery Application 147

Subcontractor Applications of Lean 147

Case 1: A Specialty Contractor's Lean Journey and Successes: Tweet/Garot'sLean Journey 148

Lean Journey 148

5S implementation 149

Example of a Lean Project 149

6S at Tweet/Garot Mechanical, Inc 150

Summary of Improvements Made 152

Overall Summary 153

Communication Plan 153

Lessons Learned 153

Future Direction: What's Next for the Kaizen Team? 154

Case 2: Belair's Lean Experience and Lean Construction Successes 154

The Lean Journey 155

Human Relations and Lean 155

Benchmarking Performance 155

Design Approach 155

Preplanning 156

Lean 2010 Improvements 158

Case 3: Grunau Company Inc.'s Lean Journey 159

Lean Initiative 1. Application of The Last Planner® System (LPS) Technique 159

Lean Initiative 2 160

Observed Benefits of Daily Huddles 160

Lean Initiative 3 160

xiv Contents

Case 4: Superior Window Corporation Inc 161

Traditional Method 162

Pilot Program 163

Comparing methods 164

Comments 165


References 166

Bibliography 166

7 Lean-Based Project Delivery Methods 167

Disadvantages of Traditional Contracting Contracts 168

Overview of Relational Contracting 169

Characteristics of Relational Contracting 170

Benefits of Relational Contracting 171

Obstacles to Relational Contracting 171

Limitations of Relational Contracting 172

Developing a Successful Relational Contracting Culture 172

Relationship Building among Team Members 172

Current Examples of Relational Contracts 173

Organization Structures for Relational Contracting 173

Integrated Project Delivery 173

Westbrook IPD Project: Case A 175

Cultural Factors in IPD Implementation 176

Project Logistics of the IPD Team 176

Project Specifics 177

Observations on the IPD Process 178

Lean Project Delivery (LPD) with an Integrated Agreement 178

Application to the Sutter Project: Case B 179

Team Activities 181

Reliable Promising 181

Trust 182

Value Engineering 182

Target Value Design (TVD) Process 182

Project Planning and Scheduling 183

Quality of Work and Services 183

Dispute Resolution 184

Learning 184

Logistics of the Sutter Project 184

Sutter's Lean Implementation Strategies 185

Management of Risk 186

Dispute Resolution 186

Benefits of Integrated Project Delivery 186

Lean Production Management: Case C 187

Roles and Responsibilities 187

Managers 188

Project Engineers 188

Production Planner 188

Lean Facilitator 189

Contents xv

Brief Overview of the Whiting Project 189

Planning Methodology I: Production Strategy: Master Production Plan 190

Details of Lean Implementation 191

Planning Methodology II: Interactive Area Planning 192

Planning Methodology III: Detailed Production Planning 192

Planning Methodology IV: Daily Production Planning 192

Planning Methodology V: Weekly Interface and Commitment Coordination 194

Results 194

Independent Third-Party Audit Results 196

Experiences and Lessons Learned 196

Habits and Previous Practices 198

Interactive and Detailed Planning 198

Weekly Interface and Commitment Coordination 199

Constraint Analysis and Assignment 199

Detailed Planning by Field Supervisors 200

Summary of LPM Requirements 200


References 201

Bibliography 201

8 Information and Communication Technology/Building Information

Modeling 203

Introduction 203

ICT—a Description 203

Impact of ICT on the Construction Industry 203

Information Management and Services 204

Communications 204

Processing and Computing 205

ICT Tools for Design and Management Processes 205

ICT Tools for Design Processes 205

ICT Tools for Management Processes 206

Model-Based Cost Estimation and Concept 207

Technology/Software and Application/Benefits 207

On-Line Bidding Concept 208

Technology/Software and Benefits 208

On-Line Permits and Concept 208

Technology/Software and Benefits 209

Shared Project Databases and Concept 209


On-Line Project Administration Systems and Concept 210

Application/Software and Benefits 210

On-Line Project Management, Control, and Concept 210

Technology/Software and Applications/Benefits 210

E-Commerce Applications 210

Business-to-Business 211

Business-to-Consumer 211

Business-to-Administration 211

Consumer-to-Administration 212

xvi Contents

Integrated Computer Aided Design Systems and Concept 212


Animated 3-D/4-D Visualizations Concepts 212


Virtual Design Studios and Concept 213


Building Information Modeling 213

History of BIM 214

BIM Implementation and Technologies 214

CAD Technology 214

Autodesk CAD Technology 214

Object CAD Technology 214

Parametric Building Modeling Technology 215

Practical Applications of BIM 215

Economic Benefits 217

Benefits of BIM at Each Construction Project Phase 217

BIM Benefits in the Design Phase 218

Three-Dimensional Modeling and Target Cost 219

Three-Dimensional Enabled Project Delivery Features 219

BIM Application in the Construction Phase 219

BIM during Occupancy 220

Case 1: Using BIM with the Hilton Aquarium 220

Case Study 2: Savannah State Academic Building 221

BIM and Energy/Exergy Analysis in Design 222

BIM and Lean Construction 223

Factors to Consider with BIM 224

BIM and Sustainable Design 225

Legal Issues Relating to BIM 225

Rights of Ownership 225

Control of Data Entry/Usage 225

Responsibility for Errors 225

Summary 226


References 227

Bibliography 228

9 Quality Management in Construction: A Complement to Lean Construction 229

Part A: Total Quality Management 229

Overview 229

Quality Management Systems 230

History of Quality in Construction 230

Benefits of TQM 231

Quality Costs 232

Principles of TQM 232

Characteristics of the Construction Industry 233

TQM Principles 234

Deming's 14 Points 234

Deming's Seven Deadly Diseases 235

Crosby's Zero Defects 235

Contents xvii

Ishikawa 236

J. Juran 236

Customer Focus 236

Process Improvement 238

Continuous Improvement 238

Quality Improvement Techniques 239

Check Sheet 239

Checklists 240

Histogram 240

Pareto Analysis 240

Cause-and-Effect Diagram (Fishbone Diagram) 240

Scatter Diagram 240

Flowcharts 240

Customer Focus and Quality Gaps 240

Barriers to the Implementation of TQM 242

TQM Implementation 243

TQM Deployment Structure 243

Quality Implementation 243

Limitations of TQM Deployment 244

Quality Improvement Concepts 244

A Study of TQM in the United States (Florida) Construction Industry 246

Phase 1 246

Knowledge of TQM 246

Perception of Quality 246

Data Acquisition Method 247

Quality in Their Organization 247

Training 247

Barriers to Implementing Total Quality Management 247

Phase II 248

Phase III 249

Recommendations for Improvement 250

Factors to Be Measured 250

Best Practices 250

Summary for Part A 251

Part B: Six Sigma in Construction 251

Definition of Six Sigma 251

History of Six Sigma 252

Six Sigma Benefits 253

Process Basics (Voice of the Process) 253

Methods 254

DMAIC Steps 254

DMADV Steps 256

Six Sigma Tools 256

Roles in Six Sigma Leadership 257

Construction Applications 259

Deploying Six Sigma 259

Examples of Six Sigma Application to Construction 261

Overall View on Six Sigma Applications 261

Project Selection 262

xviii Contents

Team Formation 262

Relationship with Clients/Owners 262

Implementing Improvements 262

Six Sigma Application to a Major Civil Engineering Project 263

Why Six Sigma 263

Overview of the Process 263

Implementing Six Sigma 263

Root Cause Analysis 264

Prioritization Matrix 265

Conclusion 266


Appendix: Quality Tools 267

Fishbone Diagram 267

ThePareto Chart 268

References 271

Bibliography 271

WebSites 272

10 Sustainable Construction: Sustainability and Commissioning 273

Part A: Sustainability 273

Importance of Sustainable Construction 274

Lean Construction and Green Buildings 274

Sustainability Practices 274

Sustainability and the U.S. Green Building Council 275

LEED (Leadership in Energy and Environmental Design) 277

Benefits of Sustainable Construction 280

Examples of Operational Benefits 280

Project Cost Savings 282

Examples of Green Construction Projects 282

Case Study #1 282

Case Study #2 283

Design Approaches for LEED 283

Checklist for Environmentally Sustainable Design and Construction 285

Challenges to Sustainable Construction 286

Commissioning and LEED 286

CxA for Designated Building Systems—New Construction 287

Part B: Commissioning 287

Categories of Commissioning 288

Importance of Commissioning 288

Commissioning and Lean Construction 289

Commissioning Service Providers 289

Rationale for Commissioning 290

Other Benefits of Commissioning 290

Commissioning versus Testing, Adjusting, and Balancing 290

Commissioning Cost/Benefit Analysis 291

Summary of the Commissioning Process 291

Qualifications 292

Certification Organizations 293

Building Commissioning Certification Board (BCCB) 293

Contents xix

National Environmental Balancing Bureau (NEBB) 294

Associated Air Balance Council (AABC) 294

Commissioning Requirements in Construction Documents 294

Sample of Commissioning Contract Requirements 295

Special Requirements for Retro-Commissioning 298

Building Systems to Be Retro-Commissioned (EBCx) Existing Construction..300


Appendix: Certification (Certifying Organizations, Designations, and Web Sites) ..301

Web Sites for Locating Commissioning Information 301

Commissioning: Related Organizations with Web References 301

References 302

Bibliography 303

11 Selected Performance Improvement Tools and Techniques 305

Performance Improvement in Construction 305

Work Sampling 306

Confidence Interval 307

Number of Samples Required 307

Work Sampling Procedure 308

Duration 308

Randomization 308

Stopwatch Time Study 308

Allowances 309

Methods Time Measurement 309

Learning Curve 310

Example: Learning Curve Calculations 312

Cycle Time Analysis 312

Simulation 314

What Is Monte Carlo Simulation? 315

Limitations 315

Other Applications of Monte Carlo Simulation in Construction 319

Exercise Question 319

Quality Function Deployment 320

Case Study 321

House of Quality (HOQ) Level 1 322

House of Quality (HOQ) Level 2 323

Observations from Quality Deployment 324

Comments on Output Target Value 325

Summary 328


References 330

Bibliography 330

12 Safety Management 331

Introduction 331

How Safe Is Construction? 332

Cost of Occupational Injury/Illness Accidents 333

Direct Costs 335

Indirect Costs 336

cx Contents

Safety and Lean Construction 336

Protection through Design 337

Role of Design Professionals in Construction Safety 338

Enhancing Design To Improve Site Safety 339

Behavior-Based Safety 342

Worker Attitudes toward Safety 342

Contractor's Role and Contribution to Safety 343

Safety through Regulatory Practices 345

Explicit Knowledge 345

Tacit Knowledge 346

Problems with Capturing Knowledge 346

Management Responsibility 347

Safety Practices 348

Case Study: Safety Implementation at the Workspace 348

Ways to Improve Workplace Safety 349

Stretching Exercises 349

Daily Safety Huddles 349

Safety Officer/Liaison 350

Program Design 351

Incentive Programs 351

Effects 351

Summary 352


Appendix: OSHA Checklists (Selected Items) 353

Employer Posting 353

Recordkeeping 353

Safety and Health Program 353

Medical Services and First Aid 354

Fire Protection 354

Personal Protective Equipment and Clothing 355

General Work Environment 355

Walkways 356

Floor and Wall Openings 356

Stairs and Stairways 357

Exiting or Egress 357

Exit Doors 358

Portable Ladders 358

References 359

Bibliography 359

13 Management and Worker Factors....

361

Managing and Motivating the Work Force 361

Introducing Behavioral Change in Construction 361

Improving Management-Worker Relations through the Malcolm BaldrigeNational Quality Award Criteria 361

Benchmarking against the Criteria 362

Nonprescriptive Nature of the MBNQA 362

Contents xxi

Motivating Workers 364

Incentives 364

Positive Reinforcement 364

Changing Management Attitudes 365

Moving beyond Traditional Thinking to Lean Thinking 366

Lean Thinking: Another Level beyond Theory Y 367

Managing Diversity 368

Diversity Management in the United States 368

Model of Diversity 369

Diversity in International/Overseas Projects 370

Taking Action on Diversity Management 371

Effective Diversity Management 371

Everyday Practices to Promote Harmony 372

Improving Worker Performance: Ergonomics-Based Strategies 373

Reducing Musculoskeletal Stresses 373

Carpal Tunnel Syndrome (CTS) 374

Risk Factors for WMSD 374

Evaluating and Addressing MSDs 374

Work System Design 375

Modular and Architectural Innovations 375

NIOSH Recommended Best Practices for Work Tasks 375

Voluntary Ergonomics Guidelines Developed by OSHA 376

Design for Construction 376

Interventions 377

Mechanized Material Handling 378

Strategies for Manual Material Handling 378

Tool and Equipment Design 378

Ergonomics Applications in Structural Ironwork 379

Machinery Moving/Rigging 380

Ornamental Ironwork 380

Reinforcing Ironwork 380

Auxiliary Handling Devices 380

Drywall Hanging Methods 381

Case Study in Overhead Drilling 381

Evaluation of an Overhead Support Stand 382

Subjective Ratings 382

Managing Environmental Impacts 384

Effects of Vibration and Noise 384

Properties of Sound 384

Annoyance 385

Distraction 385

Other Vibration Effects 385

Effects of Tools 385

Interference and Masking 385

Elements of a Hearing Conservation Program (HCP) 385

Audiometric Test Programs 386

Exposure Monitoring: Measuring Sound Levels 386

xxji Contents

Weighted Sound Level Meters 386

Hearing Protection Minimizing Adverse Effects 386

Hearing Protection Devices 386

Employee Training 386

Engineering Control: Eliminating Vibration Causes 386

Isolating Sources 387

Isolating Personnel 387

Temperature Effects on Personnel 387

High Temperatures 388

High Temperature and Performance 388

Effects of Cold 388

Additional Effects: Wind 389

Impact on Lean Construction 390

Test Your Understanding 391

Managing the Impacts of Scheduled Overtime on Productivity 391

Implications for Lean Construction 392

References 392

Bibliography 393

14 Systems Integration Approaches 395

Industrial Engineering Solutions for the Construction Industry 396

Professional Overview of Industrial Engineering 396

Case 1: Seattle Area Coffee Company 398

Systematic Layout Planning 399

Evaluating Alternatives 400

Evaluation Criteria 401

Revise Layout Alternatives 401

Evaluating Layout Alternatives 402

Case #2: Systems Integration and the Application of Lean Methods in

Construction 407

Concurrent Engineering Approach 408

Completed Project Results 409

IE-Based Bid Strategy for New Projects 410

A4 Chart 410

End Note 411

Case #3: Industrial Engineering Applications in the Mexican Construction

Industry 412

Human Resources 412

Project Organization 412

Project Planning and Scheduling 413

Work Scheduling 413

Methods Analysis and Work Simplification 413

Distributed Information 415

Quality Assurance 415

Use of Checklists 415

Production Control 416

Just-In-Time Technique 417

Contents xxiii

Defining the Industrial Engineer's Role in Construction 418

Implementation of Curriculum Enhancements 419

Preparing IEs for Lean Project Delivery 420

Implementation Issues 421


Reference 421

Bibliography 422

15 Learning from Projects and Enhancing Lean Project Delivery and IPD 423

Introduction 423

Overview of Post-Occupancy Evaluation (POE) for Continuous

Improvement in Construction 423

Scope of Evaluations 424

Categories of POE: Historical, Comparative, Longitudinal, Quasi-Experimental 424

Role of Programming in POE 425

Planning for the POE 426

POE Procedures 426

Quality Score Calculations 428

Other POE Approaches 429

Sample Questions 429

Client Satisfaction with Design and Construction Services 430

Owners 430

Best Practices to Derive the Best Results from POE 430

Contractor Post-Mortems 431

Belair Contracting's Post-Mortem Process 431

Aligning the POE Process with Lean Construction 434

Learning from Lean Construction Projects 435

Enhancing The Lean Project Delivery System and IPD 438

Importance of Champions 438

Observations 440

Enhanced Lean Project Delivery and IPD 443

Project Definition Phase 444

Establishing Design Criteria 444

Lean Design Phase 445

Lean Supply 445

Lean Assembly 445

Commissioning 445

Use 446

Alteration and Decommissioning 446

Continuous Learning/Evaluation/POE 446

Work Structuring and Production Control 447

Sustaining Lean Construction 447

The Way Forward 449


Appendix: Examples of "Lessons Learned" Recommendations from

Post-Occupancy Evaluation of a New Educational Facility 451

Design Factors 451

Design/Construction Recommendations 451

xxiv Contents

Classroom Recommendations 451

Restroom Recommendations 452

Auditorium Recommendations 452

Meal Preparation/Distribution Recommendations .....452

Security Recommendations 452

Handicapped Accessibility Recommendations 453

Furniture, Fixtures and Equipment (FF&E) Recommendations 453

HVAC Recommendations 453

Quality Assurance Recommendations 453

General Recommendations 454

Examples of Actions Taken Following POE Recommendations: 454

References 455

Bibliography 455

Glossary of Lean Terms 457

Index 465