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Mcgraw Hill Construction SmartMarket Report Lean Construction Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Premier Partner: ■ Design and Construction Intelligence SmartMarket Report McGraw Hill Construction Lean Construction: Leveraging Collaboration and Advanced President Practices to Increase Project Keith Fox EfficiencySmartMarket Report About McGraw Hill Vice President, Product Development Executive Editor Kathryn E. Cassino Harvey M. Bernstein, F.ASCE, LEED AP Construction McGraw Hill Construction’s data, Editorial Advisor and Contributor McGraw Hill Construction analytics, and media businesses— Research & Analytics/ Stephen A. Jones Industry Insights & Alliances Dodge, Sweets, Architectural Record, Editorial Director GreenSource, and Engineering Vice President, Industry Michele A. Russo, LEED AP News-Record— create opportunities Insights & Alliances Harvey M. Bernstein, F.ASCE, LEED AP Managing Editor for owners, architects, engineers, Donna Laquidara-Carr, LEED AP contractors, building product Senior Director, Research & Analytics manufacturers, and distributors to Burleigh Morton Senior Director, Head of Marketing strengthen their market position, size Director, Green Content & William Taylor their markets, prioritize prospects, Research Communications and target and build relationships Michele A. Russo, LEED AP Manager, Content Operations Juan Ramos that will win more business. McGraw Hill Construction serves more than Reproduction or dissemination Art Directors one million customers through its of any information contained Melissa Washington trends and forecasts, industry news, herein is granted only by contract Rosa Pineda and leading platform of construction or prior written permission from Contributing Art Director data, benchmarks, and analytics. McGraw Hill Construction. AD-BOUTIQUE, INC. Hisako Fujishima To learn more, Copyright © 2013, Researcher/Contributor visit www.construction.com. McGraw Hill Construction, Bruce Buckley ALL RIGHTS RESERVED Contributors Belle Communications Enver Fitch Katharine Logan Research Project Manager Susan Barnett, MRA, PRC For further information on this SmartMarket Report or for any in the series, please contact: McGraw Hill Construction Research & Analytics 34 Crosby Drive, Suite 201 Bedford, MA 01730 1-800-591-4462 [email protected] SmartMarket report Introduction hile concerns about the ■■Greater Productivity (77%) y C inefficiency of the construc- ■■Improved Safety (77%) ien tion industry are not new, However, the most surprising result of C the devastating impacts this study is that, despite the experience ffi e t Wof the long recession have made it clear of the last few years, 55% of firms that are C that, even as the economy slowly recov- not familiar with Lean practices or Lean ers, business as usual can no longer be an construction regard current construction acceptable approach in the construction processes as efficient/highly efficient.i n Harvey M. Bernstein seProje industry. Lean construction offers an alter- contrast, 62% of Lean practitioners regard F.ASCE, LEED AP Vice President rea native that allows companies to thrive in these same processes as inefficient/highly C Industry Insights & Alliances n any economic conditions. inefficient.i n addition, Lean practitioners i McGraw Hill Construction in the last few years, Mcgraw Hill find lack of knowledge the biggest obstacle to Construction has explored many ways in to implementing Lean, and non-practitio- es C which the industry has addressed ques- ners familiar with Lean consider lack of ti C tions of inefficiency.o ur series of BIM industry support or understanding of Lean Pra reports demonstrate, among other find- to be the biggest obstacle. Clearly, educa- ed ings, that the collaborative approach BIM tion about Lean and the need for and C n can help foster has strong impacts on benefits of increasing efficiency must be a productivity and profitability.s imilarly, major priority for the industry at large. dva a the 2011 Prefabrication and Modulariza- increasing industry knowledge about tion and Mitigation of Risk in Construction how Lean can improve construction is SmartMarket Reports reveal approaches particularly vital because many Lean Stephen A. Jones that improve the process of construction, construction practices depend upon a Senior Director improving the bottom-line of projects. highly collaborative approach. the empha- McGraw Hill Construction rationand This report builds upon those findings sis on early planning and the commitments abo by demonstrating that taking a Lean to schedule demand that all project part- ll approach, including the use of BIM and ners collaborate to achieve the benefits prefabrication, makes firms more competi- offered. However, this study also suggests tive and yields strong business benefits. in that, despite advances, the technolo- fact, these benefits can be so pronounced gies currently in place must be improved that one of the expert Lean contractors to more fully support a collaborative interviewed as part of this study states approach. The in-depth interviews with n:Leveraging Co that , because of their Lean approach, “We highly collaborative contractors reveal the tio didn’t have a downturn.” lack of a system that fully supports the C among contractors using the Lean ability to collaborate with internal or exter- practices included in the study, most report nal project team members. a wide range of benefits, including: We would like to thank our premier ■■Higher Quality Construction (84%) partner dassault systèmes for their help in ■■Greater Customer Satisfaction (80%) bringing this call to action to the industry. LeanConstru Harvey M. Bernstein, F.ASCE, University Civil and Environ- Stephen A. Jones, leads Primavera Systems (now LEED AP, has been a leader in mental Engineering Advisory McGraw-Hill Construction’s Oracle), a leading provider of the engineering and construc- Council and as a visiting (MHC) initiatives in BIM and project management software. tion industry for over 30 years. professor with the University of integrated project delivery, Prior to that, he spent 19 Currently, he has lead responsi- Reading’s School of Construc- as well as developing years in creative, marketing bility for MHC’s market research tion Management and Engineer- alliance relationships for and management roles with group as well as MHC’s thought ing in England. Bernstein has an technology and content. design firms, most recently leadership initiatives in areas M.B.A. from Loyola College, an Active in numerous as a Principal and Board of such as green building, BIM, M.S. in engineering from Princ- industry organizations, he Directors member with Burt interoperability, innovation and eton University and a B.S. in global construction markets. civil engineering from the New frequently speaks at events Hill (now Stantec), a large, Previously, Bernstein served Jersey Institute of Technology. around the world about the global architectural and as the president and CEO of business impact of emerging engineering firm. Jones holds the Civil Engineering Research technologies and trends. an M.B.A. from Wharton and a Foundation. He currently serves Before joining MHC, Jones B.A. from Johns Hopkins. as a member of the Princeton was a vice president with McGraw Hill Construction 1 www.construction.com SmartMarket Report SmartMarket report Introduction assault Systèmes with McGraw Signaling a Cultural Change y C Hill Construction is pleased This transformation is a cultural change for en to present this Smart Market the industry. The survey findings point to fici Report, which provides insight changes in management philosophy. They Ef Dinto collaboration and Lean practices in point to the need to empower field super- ct e the construction industry. The industry is intendents and to champion new ways of J undergoing an important transformation in constructing and planning. We are also Marty Doscher Pro the way work is performed and managed. struck by Lean practitioners’ concern about Vice President e Architecture, Engineering Facility owners are demanding higher the availability of skilled workers. All of these as and Construction re performance buildings delivered with indicate a need for increased education and Dassault Systéms C greater economy. This requires all play- work instruction. In o ers in the industry to be more competitive T We would like to thank McGraw Hill S to meet those demands by capitalizing on e Construction and especially those industry know-how to deliver projects on-time and tic participants who shared their insights into on-budget while improving worksite safety ac the drivers of Lean and increased efficiency and efficiency. To excel in the new con- Pr that signal the way towards a high perfor- ed struction industry, the entire team will C mance construction industry. n need to examine their processes closely A and find new ways to innovate and build Dassault Systèmes, the 3DEXPERI- Patrick Mays Adv with less waste. Business Consultant Director ENCE Company, provides business and Archtecture, Engineering nd A people with virtual universes to imagine Collaborative Construction and Construction sustainable innovations. Its world-lead- Dassault Systéms on I Construction project teams are in search ing solutions transform the way products at of coherence, where all project team r are designed, produced and supported. bo members—from the owner to the office to A Dassault Systèmes’ collaborative solutions the field—share a common view of objec- ll foster
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