Taking up Challenges in the Construction Industry


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Planning for success: applying lean principles to project planning so that the whole supply chain is involved.

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  • Garage: we normally pick a well organised and clean one. Restaurant: if you could only have a look into the kitchen… Construction site: surprised about delays, cost overruns and quality issues? (if the site looks like this)
  • Delay: Rijksmuseum 7 years delayed (1999 – 2006 >2013). Cost overrun: Noord-Zuidlijn 1,6 billion (1,5 > 3,1 bln.) and 6 years delayed (2002 – 2011 > 2017). Quality issues: anywhere, long defects-lists, lot of hassle!  And we wonder why people don’t trust contractors….
  • Obstructions: unsafe, irritations, financial losses. Trash: unsafe, unsafe, irritations. Noise: (e.g. piling), concentration loss, damage. Example: noise from neighbors irritating, but not when they told you they have a party.  And we wonder why people are against construction projects in their neighborhood…
  • Contracts: getting thicker because of mistrust (see former sheets). Knowledge unused: contractors are only used for implementation, where they have a lot of experience to bring in on how to do things easier/smarter/better (innovation not stimulated this way). Failure costs: around 11% where most have to fight for 2% margins!  And contractors wonder why they do not get results they want…
  • Higher complexity: buildings get more complex, more parties are involved. Poor communication: everyone has their own ‘truth’. Selfish: are we pursuing the common goal, or just our own optimisation?  We have to organise communication otherwise!
  • Communication losses: the whisper game effect we all know from our childhood. We keep communication the same way in daily practice...  Have we not learned anything?
  • Teamwork beats ego’s: be selective to get a balanced team (select supplier base). Get together: use one big room to get the same view on the situation (war room approach). Stay together: work with the same team as often as possible (preferred suppliers), to get attuned and keep learning. War room / obeya / big room: Having all relevant information displayed in a single location goes a long way to bringing light on the situation facilitating problem-solving and strategic decisions.  These documents will remain in the room as long as the crisis is in effect and thus the room should be dedicated to this single purpose. http://2leanprincipals.com/2010/08/01/establish-a-war-room-obeya/
  • family business >70 years old development + architects + contractors 5 locations 290 employees 110 mln. Turnover  Did not wait for others to change… started with Lean Construction in 2004 have done >140 projects using lean philosophy
  • 5S: workplace organisation to change attitude, to set the standard, work more efficient, safer etc. Both office and sites… … are now our most important business cards! 5S = Sort, Set (in place), Shine, Standardize, and Sustain.
  • Planning (PDCA) = 80% of success! Starting: get a clear view on the end product and process (focus on customer value, and logistics). Tackle issues: avoid waste in the process by tackling issues up-front, and bring in ideas to do things better (look for alternatives). Plan together: side-by-side, interactive, and with commitment to the end result!  Notice: low-tech is sufficient (big-room, whiteboards, post-its).
  • Do-Check-Act = 80% of out time… Get together: now on site, with foreman of present subcontractors (we rather call suppliers). Check: delivery time not to be exceeded, therefore weekly check meeting, tackle possible issues. Act: act on deviations, fine-tune the planning.  Keep the PDCA loop closed!
  • Highest influence is at the beginning of the process, therefore work asap as one thus with all stakeholders!
  • War room. Discuss possible issues and options. Get commitment as a team!
  • With good result you build reputation and win customers trust! Anecdote about WII-bomb at Philips Lightning: planned again > changed building sequence > achieved original delivery date!  Therefore we dare to work on fix price bases and with penalty clause on delivery date!
  • Taking up Challenges in the Construction Industry

    1. 1. Planning for success: applying lean principles to project planning so that the whole supply chain is involved *Taking up Challenges in the Construction Industry using the Lean Philosophy IQPC Process Excellence Benelux Brussels 26 October 2010 Rudy Gort MSc. MBA Manager Lean Construction
    2. 2. Confident about quality results?
    3. 3. World wide annoyances about contractors... delays cost overruns quality issues
    4. 4. World wide public area annoyances... obstructions trash noise
    5. 5. Challenges within the contracting industry
    6. 6. Causes of failure
    7. 7. Communication losses Each barrier cost
    8. 8. Remedy teamwork war room approach get attuned
    9. 9. Who is Heembouw?
    10. 10. 5S - workplace organisation: a change of attitude
    11. 11. Pull-planning: tackling the construction process together plan plan for commitment! plan
    12. 12. Weekly work meetings: check and fine-tune the pull-planning do check act
    13. 13. Influence curve • Quality • Cost • Safety • Sustainability van producten die invloed hebben op het ontwerp Dedicated Pull-planning Turn-key Bouwteam Hard-bid Getting right things done (effective) Getting things done right (efficient)
    14. 14. Dedicated design & engineering: the war room approach
    15. 15. Heembouw resultsQuality Defects-list: 46% ⇩ Complaints: 44% ⇩Cost Cost due to defects: 84% ⇩ Cost due to complaints: 40% ⇩Delivery On time: >95% Construction time: 10-40% ⇩Safety Injuries (IF): 13% ⇩ Safety issues: 10% ⇧Satisfaction Customer satisfaction: 7,9 (5 years average) Employee satisfaction: 7,8 (5 years average)
    16. 16. Questions