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What are the Benefits of Adopting Lean Construction?

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Presentation on theme: "What are the Benefits of Adopting Lean Construction?"— Presentation transcript:

1 What are the Benefits of Adopting Lean Construction?
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2 Outline of the Presentation
Introduction Literature Review Research Methodology Results and Discussion Recommendations This slide presents the outline of the current presentation. In this presentation, we will identify with the introduction where we talk about the rationale of study and the objectives, a theoretical background to the study, a clear methodology, results of the study and the defence of study findings. Newessays.co.uk Sample

3 Introduction Newessays.co.uk Sample

4 Lean Construction - Definition
Lean construction is an adaptation of lean production techniques applied to the construction industry (Lacatelli et al., 2013) It is about managing and improving the construction process to profitably deliver what the customer needs Lean production can be identified as the application of minimal buffers and materials to stock and delivery of components in factory settings to ensure that the production line is more efficiently managed to reduce overall cost (Berggren, 1990) Let us begin by understanding what lean construction means. The term lean construction is an adaptation of lean production techniques applied to the construction industry. Lean construction is about managing and improving the construction process to profitably deliver what the customer needs. Furthermore, there are multiple definitions promoted with respect to lean production and management. Lean production can be identified as the application of minimal buffers and materials to stock and delivery of components in factory settings to ensure that the production line is more efficiently managed to reduce overall cost Newessays.co.uk Sample

5 Research Background Efforts to spread awareness of the concept of lean construction have been going on since 1998 in the UK Common et al. (2000) argue that in spite of the continuous efforts to spread awareness in the UK of the concept of lean construction, large UK based construction firms have not shown an inclination to adopt lean construction and management practices There exists a much bigger gap when it comes to the number of researches that have delved into lean construction practices in the UK when compared to other countries Now, this slide presents the background for the current study. Efforts to spread awareness of the concept of lean construction have been going on since 1998 in the UK. Awareness of lean construction in the UK has been established through lean construction (LC) consultancy and promotional companies and by the Lean Construction Institute UK (LCI-UK). There is evidence to show that in spite of the continuous efforts to spread awareness in the UK of the concept of lean construction, large UK based construction firms have not shown an inclination to adopt lean construction and management practices. In addition to this, there exists a much bigger gap when it comes to the number of researches that have delved into lean construction practices in the UK when compared to other countries Newessays.co.uk Sample

6 Aims of the Study To identify the determinants (both benefits and barriers) of lean construction from existing literature To determine the impact of benefits of lean construction on construction buildability To assess the impact of negative factors which reduce the impact of lean construction and construction project buildability To provide recommendations to overcome the negatives of lean construction management This slide presents the main objectives of the study. Newessays.co.uk Sample

7 Literature Review Newessays.co.uk Sample

8 Lean Management According to Liker (2004) and Womack and Jones (1996), the concept of lean production and management can be examined from the perspective of the following attributes: Strategic management Efforts undertaken to increase focus on customer value and resource efficiency Cross functional teams which can function with cross disciplinary talent Simultaneous or concurrent development of multiple systems and subsystems Production approach aimed at ensuring that a larger subsystem can be promoted with a higher level of supplier involvement The aim of this review is to identify the principles of lean management in construction and identify the factors which directly relate to ‘buildability’ features. The concept of lean production and management can be examined from the perspective of the following attributes. 1. Strategic management. 2. Efforts undertaken to increase focus on customer value and resource efficiency. 3. Cross functional teams which can function with cross disciplinary talent. 3. Simultaneous or concurrent development of multiple systems and subsystems. 4. Production approach aimed at ensuring that a larger subsystem can be promoted with a higher level of supplier involvement. Newessays.co.uk Sample

9 Benefits of Lean Construction
Strategic management of project and minimisation of project rework Reduces the cost of construction project Increase in project quality and value Now that we have understood the basics of lean construction, let us see what the benefits of adopting lean construction practices are. The primary benefits of lean construction when compared to traditional construction can be examined at the strategic level. The promotion of lean construction will ensure there is overall reduction in project rework. This is largely associated with the principles of lean design and lean supply management, where the different stakeholders are effectively collaborated from the first stage. Furthermore, the aim of lean construction is to reduce time and cost stresses associated with project activities. The cost of construction is reduced due to an associated reduction in the time delivery of products and services. The role of lean management in construction is to ensure that there is effective management of the uncertainties associated with the supply chain and that there is continuous improvement within the construction project. This leads to a significant increase in the project quality due to the improvement of associated project delivery methods and the overall increase in client satisfaction. Newessays.co.uk Sample

10 Weaknesses of Lean Construction
Fragmentation of the UK construction industry This has resulted in the need to differentiate between lean principle application across other industries and the construction industry in the UK Culture and labour The inherent fragmented nature of the construction industry has resulted in the growth of a static and hierarchical organisational structure Now, let us take a look at the weaknesses associated with lean construction. The construction industry in the UK is found to be largely fragmented and dominated by a number of medium and small sized organisations which are found to exist and function on a local level rather than a global level. This has resulted in the need to differentiate between lean principle application across other industries and the construction industry in the UK. A fragmented construction market can result in the need to act flexibly, especially in the presence of a largely variable workload. In addition to this, The inherent fragmented nature of the construction industry has resulted in the growth of a static and hierarchical organisational structure Newessays.co.uk Sample

11 Research Methodology Newessays.co.uk Sample

12 Research Design Research Philosophy – Positivism
This philosophy is used as the study primarily engages in collecting data from an objective point without interrupting the phenomenon involved Research Approach - Deductive This approach is used as it verifies if a given theory is credible in a given situation Research Strategy – Survey Research Method - Quantitative The research design is the connecting path that joins the argument and the theory associated with the topic of research, and the corresponding data that is collected. The research design mainly involves the research philosophy, research approach, research strategy and the research method. The present study will employ a positivism-based philosophy as the study primarily engages in collecting data from an objective point without interrupting the phenomenon involved. A deductive approach verifies if a theory is credible in a given situation. The deductive approach trails along the logic path very closely. Initially, it begins with a theory, leading into a new hypothesis. This hypothesis can be tested with observations that either result in a rejection or the confirmation of the hypothesis. The present study therefore has adopted the deductive approach for its research purposes. The present study plunges into the basic concept of lean construction. Hence, for the present study, a survey based research strategy is embraced to derive better results. The current study utilises a quantitative method to collect data as this type of data is utilised when the researcher tries to establish comparisons or when people deal with statistical or financial research Newessays.co.uk Sample

13 Data Collection Methods of Data Collection - Questionnaires
Time horizon - Cross sectional Sampling method - Convenience sampling Pilot Study is conducted among a group of researchers and the research study is verified in terms of reliability and validity Data collection is an essential component of every research process. The data gathered can be categorised into two main types, primary data and secondary data. The primary data usually consists of data that is directly obtained from the source or from a given population. Data obtained through questionnaires or surveys, or by performing interviews among people, are all classified as primary data. The use of a questionnaire using closed ended statements helps identify the views of the respondents. The current study therefore makes use of a questionnaire which has both open ended and closed ended questions. The study also adopts a cross sectional time horizon to carry out the necessary research for the study. Furthermore, convenience sampling method is used in the current study. A pilot Study is conducted among a group of researchers and the research study is verified in terms of reliability and validity Newessays.co.uk Sample

14 Data Analysis Saunders et al. (2011) assert that the use of a questionnaire requires a quantitative data analysis using statistical tools In the current research, quantitative data analysis is promoted using the SPSS Version 21.0 software The use of a questionnaire requires a quantitative data analysis using statistical tools. In the current research, quantitative data analysis is promoted using the SPSS Version 21.0 software Newessays.co.uk Sample

15 Results Newessays.co.uk Sample

16 Analysis of Participants Demographics
Analysis of the results from the survey showed that: Most of the respondents were between the age of (28.3%) or years (35%) Most of the respondents were men (82.5%) rather than women (17.5%) Most of the respondents have been in the industry for more than 5-10 years (37.5%) or 4-5 years (33.3%) This section presents the interpretation of the results obtained from the survey. Analysis of the results from the survey showed that: Most of the respondents were between the age of (28.3%) or years (35%) Most of the respondents were men (82.5%) rather than women (17.5%) Most of the respondents have been in the industry for more than 5-10 years (37.5%) or 4-5 years (33.3%) Newessays.co.uk Sample

17 Analysis of Knowledge and Practice of Lean Construction
It is argued that there is no significant association between their knowledge and practice. This is because 80% of respondents who identified that they have limited knowledge of lean construction also identified that they did not practice lean construction principles. At the same time, 30.8% of respondents who had vague knowledge of lean construction principles were found to have good practice of lean construction. Most respondents indicate moderate (25 respondents) to good (22 respondents) practice of lean construction. Few of the construction managers presented interesting insights on this. They responded that the practice of lean construction was a principle of the construction organisation and that construction managers had limited say in the same Analysis of the knowledge and practice of lean construction by the construction managers showed that there is no significant association between their knowledge and practice. This is because 80% of respondents who identified that they have limited knowledge of lean construction also identified that they did not practice lean construction principles. At the same time, 30.8% of respondents who had vague knowledge of lean construction principles were found to have good practice of lean construction. Most respondents indicate moderate (25 respondents) to good (22 respondents) practice of lean construction. Few of the construction managers presented interesting insights on this. They responded that the practice of lean construction was a principle of the construction organisation and that construction managers had limited say in the same Newessays.co.uk Sample

18 Table 1: Cross tabulation of Knowledge of Lean Construction and Practice of Lean Construction
Knowledge of lean construction * Practice of lean construction Cross tabulation Practice of lean construction Total Not at all Vague Moderate Good Knowledge of lean construction Count 4 1 5 % within Knowledge of lean construction 80.0% 20.0% 0.0% 100.0% 3 13 7.7% 38.5% 30.8% 23.1% 9 10 25 4.0% 36.0% 40.0% 8 22 36.4% 22.7% 40.9% Very good 2 66.7% 33.3% 23 19 18 68 11.8% 33.8% 27.9% 26.5% Newessays.co.uk Sample

19 Analysis of Barriers to Lean Construction
The analysis of the results show that lack of flexibility, complexities in coordination and management, difficulties associated with multiple stakeholder involvement, difficulties in communication and the use of subcontractors are definite barriers to the promotion of lean construction The respondents also indicate that the lack of exposure, difficulties in applying lean construction management principles of manufacturing in construction, lack of HR development in terms of lean construction and lack of training are definite barriers to the promotion of lean construction The respondents indicate that the lack of coordination between design and construction, the presence of incomplete design and the lack of control during design phase are definite barriers to the promotion of lean construction An analysis of the barriers to lean construction reveals: lack of flexibility, complexities in coordination and management, difficulties associated with multiple stakeholder involvement, difficulties in communication and the use of subcontractors are definite barriers to the promotion of lean construction The respondents also indicate that the lack of exposure, difficulties in applying lean construction management principles of manufacturing in construction, lack of HR development in terms of lean construction and lack of training are definite barriers to the promotion of lean construction The respondents indicate that the lack of coordination between design and construction, the presence of incomplete design and the lack of control during design phase are definite barriers to the promotion of lean construction Newessays.co.uk Sample

20 Benefits of Lean Construction
The respondents indicate that the setting of project scope at the design stage, clear identification of objectives, maximisation of performance and the promotion of stakeholder involvement at the design stage are definite benefits which reduce project rework due to lean construction The respondents also indicate that the promotion of waste reduction, reduction in project uncertainty and project risk and reduction in project delay are definite benefits which reduce project cost due to lean construction The survey asked the respondents as to what were the perceived benefits of lean construction. The respondents indicate that the setting of project scope at the design stage, clear identification of objectives, maximisation of performance and the promotion of stakeholder involvement at the design stage are definite benefits which reduce project rework due to lean construction The respondents also indicate that the promotion of waste reduction, reduction in project uncertainty and project risk and reduction in project delay are definite benefits which reduce project cost due to lean construction Newessays.co.uk Sample

21 Impact on Project Buildability
The results shows that only two attributes are found to have a significant impact on construction project buildability It is observed that human resource factors and funding are found to negatively impact construction buildability Project cost has a significant positive impact on construction buildability The impact on project buildability is important to assess if the barriers to lean construction negatively or positively impact project buildability. A negative relationship was expected between the barrier factors as well as the construction buildability factors. The results shows that only two attributes are found to have a significant impact on construction project buildability. It is observed that human resource factors and funding are found to negatively impact construction buildability. However, A positive relationship was expected between the benefit factors as well as the construction buildability factors. From the results it is clear that only one attribute is found to have a significant impact on construction project buildability. It is observed that project cost has a significant positive impact on construction buildability. Newessays.co.uk Sample

22 Table 2: Impact on Construction Project Buildability I
Coefficientsa Model Unstandardized Coefficients Standardised Coefficients t Sig. B Std. Error Beta 1 (Constant) 3.094 .753 4.107 .000 Human resource factors -.064 .179 -.269 -2.477 .044 Project integration -.257 .181 .265 -1.420 .160 Fragmentation in the industry -.016 .103 .020 -.158 .875 Funding Issues -.18 -3.158 .007 a. Dependent Variable: Construction Project Buildability Table 3: Impact on Construction Project Buildability II Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 1.979 .679 2.917 .005 Project cost .119 .114 -.010 3.082 035 Project quality and value .197 .111 .217 1.769 .082 Project rework .099 .109 .908 .367 a. Dependent Variable: Construction Project Buildability Newessays.co.uk Sample

23 Recommendations The general recommendations identified from the study results include: Investment in lean construction training Promotion of greater awareness amongst the top and middle management with respect to lean construction Improve the funding given by private organisations to lean construction Provide a clear definition of lean construction application throughout the project Ensure that lean construction is part of the construction design and procurement and involve multiple stakeholders This slide presents the recommendations for the current study. The general recommendations identified from the study results include: Investment in lean construction training Promotion of greater awareness amongst the top and middle management with respect to lean construction Improve the funding given by private organisations to lean construction Provide a clear definition of lean construction application throughout the project Ensure that lean construction is part of the construction design and procurement and involve multiple stakeholders Newessays.co.uk Sample

24 References Berggren, C. (1990). Detnyabilarbetet: Konkurrensenmellanolikaproduktionkonceptisvenskbilindustri Ph.D. Thesis published by Arkiv //Studentlitteratur, Lund, Sweden. Common, G., Johansen, E., & Greenwood, D. (2000). A survey of the take-up of Lean Concepts among UK construction companies. In Proceedings of the 8th International Group for Lean Construction Annual Conference. Brighton, United Kingdom. Lacatelli, G., Mancini, M., Gastaldo, G. and Mazza, F. (2013). Improving Projects Performance with Lean Construction: State Of The Art, Applicability and Impacts. Organization, Technology & Management in Construction: An International Journal, 5, pp Liker, J.K. (2004) .The Toyota Way. (1 edition.), McGraw-Hill. Saunders, M.N., Lewis, P. and Thornhill, A. (2011). Research Methods For Business Student. 5th edition, published by Dorling Kindersley (India) Pvt.Ltd.,Licensces of pearson Education in south Asia. Womack, J. P., and Jones, D. T. (1996). Beyond Toyota: how to root out waste and pursue perfection. Harvard business review, 74(5), pp. 140. Newessays.co.uk Sample


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