Guest article from Richard Davies Project Manager Capital Projects Property Services –
Severn Trent Water
In the current economic climate with clients
having to justify value and contractors fighting an ever decreasing margin, the
drive towards a leaner, more efficient way of working is inevitable and to
disregard Lean is to remain left behind
Source: http://www.constructioncitizen.com |
The
first, somewhat cynical reaction, is to say it’s all very interesting, but it
isn’t relevant to construction work.
After all it is a production line and they have two very important key
components, - they are making virtually the same thing time after time and they
have a relatively stable work load so they can organise themselves to maximise
efficiencies. The workload in
construction is so fluid and so varied it can’t possibly work. Indeed it may be
difficult to apply it wholesale as two projects are rarely similar, due to
procurement route, client type, client priorities etc, but to disregard all of
the philosophies as irrelevant would be to miss a huge opportunity for the
industry and to allow clients to squeeze every last percentage of value from a
project. What is a construction project
if not a series of processors?
Source: http://www.walshgroup.com |
All
of this leads to arguments as to whose responsibility it is to co-ordinate
teams to eliminate re-working which results in disputes and higher costs for
all. Contractors may well point at the
clients for trying to drive down costs, but they must bear a responsibility for
providing a sufficient cost to complete the works properly. Maybe if the industry could instil the level
of accountability in the supply chain as Jaguar do it may go some way to
resolving the issue. The other major items are the commitment to improve,
whatever the percentage in efficiency and a ruthless drive to minimise
waste. There is no excuse for saving a
single percent, simply because it is only 1%.
During the value engineering exercises undertaken on projects, the
temptation is to target the areas of prime expenditure as this is where you can
usually make the biggest saving for the least effort or the biggest bang for
the buck so to speak. However in this
exercise sometimes the smaller items get lost as not worth the effort which
leads to many missed opportunities to really drive value down every element of
the project.
In
addition, every process at Jaguar is broken down and analysed to identify the
components that add no value and are therefore waste. These are then removed from the process. If this philosophy was adopted on
construction sites it would be revolutionary – all those trips to a skip, all
that re-working because the electrician hadn’t finished before the ceiling
fitters were in, the possibilities are endless.
In
the current economic climate with clients having to justify value and
contractors fighting an ever decreasing margin, the drive towards a leaner,
more efficient way of working is inevitable and to disregard Lean is to remain
left behind.
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I think the crucial difference between a manufacturer such as Jaguar and a main contractor is that Jaguar, in the main, employs and trains it's own workforce from shop-floor to senior management .
ReplyDeleteMain contractors just want to employ senior managers and sub-contract out everything else.
Good thoughtful article.
ReplyDeletePrefabrication has been around since the 70s and something which we continually promote through all our projects. The problem we find is reluctance from contractors to take on this methodology and subsequently price higher missing the value proposition.