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SmartMarket Report

Lean Construction Leveraging Collaboration and Advanced Practices to Increase Project Efficiency

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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 social innovation, expanding possi- o tives, plans and status. All parties need to

C bilities for the virtual world to improve the g share the same consistent set of data and n real world. The group brings value to over i to arrive at a shared understanding. 150,000 customers of all sizes, in all indus- ag Lean Methods to tries, in more than 140 countries. For more information, visit www.3ds.com. Akio Moriwaki : Lever: Industrialize Construction Marketing Director

on A majority of Lean practitioners increase i Architecture, Engineering efficiency by undertaking offsite prefab- ct and Construction Dassault Systemes ru rication (90%) and Just-In-Time material

st delivery (78%).

n Conn Marty Doscher is responsible Patrick Mays, AIA, has over tration procedures for the firm Akio Moriwaki is responsible a for developing 3DS market twenty five years of experience of Backen, Arrigoni & Ross, for global marketing strategy

Le share and revenues in the in architecture and construc- and he was responsible for and deployment for the Archi- Architecture, Engineering and tion, and joined Dassault technology systems at HOK. tecture, Engineering and Construction (AEC) Industry. Systémes to lead strategy Mays has been published in Construction (AEC) Industry. Mr. Doscher led the AEC Indus- in the building construction numerous newspapers and Mr. Moriwaki led the global try team to launch the Lean market. He was formerly the magazines for both his design marketing team in launching Construction Solution Experi- General Manager for North work as well as special the Lean Construction ence in January 2013. Before America at Graphisoft and part areas of technical expertise. Solution Experience in joining Dassault Systémes, Mr. of research and development Mays has a B.S. in Architec- January 2013. Mr. Moriwaki is a Doscher was founder and prin- at Herman Miller. Mays was ture, as well as one in Orna- member of the International cipal of Synthesis Technology CIO at NBBJ Architects from mental Horticulture, and a Alliance for Interoperability Integration, an AEC consulting 1997 to 2004 and led one of the Masters in Architecture from Japan Association (Building services company. Prior to that, world’s largest design firms in Clemson University. Smart). Prior to joining he was IT Director of interna- the transition to Building Infor- Dassault Systemes, Mr. Mori- tionally-acclaimed Morphosis mation Modeling (BIM). He waki was in charge of market- Architects for 8 years. was responsible for developing ingand business development standard construction adminis- at Adobe Systems (Japan).

SmartMarket Report McGraw Hill Construction 2 www.construction.com Glossary

Definition of Terms Used

y 5S (for workplace organization): Lean Construction: c n Part of the Just-in-Time Manufacturing approach, 5S is a The elimination of waste from construction processes. e

ici workplace organization method built around five Japa- f nese terms that begin with an “S” when translated into Ef Multi-Party Contracts: t English. The five S’s are Sort, Straighten, Sweep, Stan- Contracts designed to encourage collaboration by jec dardize and Sustain, although Safety and Security are o sharing the risks and rewards across multiple project also considered under this approach when appropriate.

Pr team members. e

eas A3 Report: r

c Pull Planning:

n A standardized approach used by Toyota and adopted Definition and sequencing of tasks, working backward o I o beyond them of problem solving through a series of steps. t

from a target completion date. ices Big Room: Six Sigma: act Part of the Toyota Way, brings project leaders together to A set of strategies, techniques and tools for process Pr use data to resolve issues that arise in a project. improvement, by identifying and solving root problems. ced n a

v Choosing by Advantages:

d Stretch and Flex Meetings: A decision-making process formulated in the late 1990s in A Short warm-up drills conducted onsite to promote safety d which only contrasting advantages of various alternatives n by stretching and flexing muscles prior to work. a are considered when making a decision. on

ati Target Value Design: Corporate Performance Management (CPM): A collaborative approach that involves a concurrent bor Software that monitors and manages an organization’s design process beginning with a project cost estimate and

lla performance, according to key performance indicators building the design around value as defined by the

Co like revenue and operational costs. building owner. ng i g a Enterprise Resource Planning (ERP) System: r Toyota Way: e

v Software supporting the internal business processes of a

e According to the Lean Construction Institute, the system

L company by providing an integrated real-time view of its developed by Toyota Motor Corporation to provide best core business processes such as finance, procurement on: quality, lowest cost and shortest lead time through the and human resources. cti elimination of waste. ru st Just-In-Time: Value Stream Mapping: According to the Lean Construction Institute, Just-In- A Lean manufacturing technique that involves creating a n Conn Time is a system of production that makes and delivers map of all stages of a process in order to identify and ea

L just what is needed, just when it is needed and just in the evaluate potential improvements or efficiencies . amount needed.

The Last Planner System®: Developed by the Lean Construction Institute, this involves requiring commitments to schedules by all project team members. The five key elements of this system are master scheduling, pull planning, make work ready planning, weekly work planning and learning.

McGraw Hill Construction 3 www.construction.com SmartMarket Report SmartMarket Report Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency table of contents 06 Executive Summary 6 Executive Summary 8 Recommendations

03 Glossary

09 Data

10 Lean Practices 10 Awareness and Use of Key Lean Construction Approaches from Manufacturing and Last Planner® 12 Elements That Define a Lean Approach 12 Expected Use in the Next Three Years of Key Lean Construction Practices 13 Awareness and Use of Additional Lean Practices 15 Practices Adopted to Increase Efficiency 17 data sidebar In-Depth Interview Findings: Adoption of Lean Practices

22 Lean Benefits and Drivers 22 Efficiency of Construction Processes in the Industry and at Individual Firms 23 Influence of Concerns About Skilled Worker Availability on the Decision to Undertake Lean 24 data sidebar In-Depth Interview Findings: Drivers for Lean 26 Benefits Achieved from Implementing Lean Practices According to Lean Practitioners 27 Benefits Expected by Lean Practitioners When They Implemented Lean Practices 28 Potential Benefits With a High Influence on Non-Practitioners for the Adoption of Lean Practices 29 Cost Savings from Lean Projects and Contractor Profit Margins 30 The Impact on Contractors of Schedule Decreases Due to the Adoption of Lean Practices 32 Objective Measures of Lean Benefits 33 data sidebar In-Depth Interview Findings: Benefits of Adopting Lean Techniques 38 sidebar Lean Strategies for Employing Prefabrication

39 Challenges to Broader Lean Implementation 39 Top Challenges Faced by Lean Practitioners in the Implementation of Lean Practices 40 Challenges That Influence Non-Lean Practitioners in Their Decision About Adopting Lean Practices 41 data sidebar In-Depth Interview Findings: Challenges to the Pursuit of Lean Construction Practices

SmartMarket Reports McGraw Hill Construction 4 www.construction.com Photograph Courtesy of Mortenson Construction contents

57 56 1 Increasing 31 Achieving 20 Technologies 42 54 5 3 46 44 42

51 5 Collaboration 45 45 Collaborating 2 Planning 6 Resources Methodology Case Studies Sa Building, San Francisco, California Hospital Five-Story Patient Tower and Connector Building, Appleton, Wisconsin ment Hospital, Denver, Colorado int-Gobain, Headquartered in France sidebar sidebar data sidebar data Technology-Focused Use Use of an Planning Resource Enterprise to System Improved Support Efficiency R es ource

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SmartMarket Reports SmartMarket Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Executive Summary Lean is still needed in the construction industry. with any Lean practice. is representative of the industry, 37% are not familiar considering the responses of the contractor panel, which Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: ( in the Processes Industry of Efficiency Construction try either efficient or highlyefficient, while 62% of Lean with any Lean practices find theconstruction indus- Over half (55%) of contractors who are not familiar Not Is Widely Recognized Practices Construction Current of Inefficiency members of the Lean Construction Mc and Six Sigma. Time delivery; The Last Planner System®; Toyota Way; their company: Lean construction; Pull planning; Just-In- have implemented any of the following six practices at survey. with Lean were actively sought out to participate in the t B Practices of Lean Use With and Familiarity nature of construction work and the highly collaborative nature of many Lean E construction approaches. T satisfied. clients their keep and projects their improve to approach a Lean by taking offered opportunities the about and processes construction current in inefficiencies the about informed better become must industry construction The Executive Summary 4_1_BEN_C1D5E16EfficiencyofIndustry_#02.eps SmartMarket Report SmartMarket ion industry, a broader sample of contractors familiar B ve here are still many firms that are not familiarwith the term Leanconstruction, a problemwhich mustbe addressed. ecause Lean is still an emerging practice in the construc- y T G n current Lean practitioners would benefitfrom wider industry awareness and adoption, due to the interconnected he Level Level of Lean ra survey sample was comprised of two groups: w Hill Construction’s Contractor Panel and Lean practitioners were identified as those that 19% Lean Practicioners 19%

E nga Clearly more education about 62% gement) I ns Mc titute. Graw Hill Construction Hill Graw When only Not Sure Efcient/Highly Efcient Neutral Inefcient/Highly Inefcient

practices are intended to reduce. tional design and construction processes that Lean do not recognize the inherent inefficiencies in the tradi- sufficient topersuade firms to adopt Lean if those firms in the study findings, thesebenefits alone may not be especially the ability to be more competitive, are evident tion industry. While the benefits of using Lean practices, of the problem of waste and inefficiency in theconstruc- approach, it is essential that there is a wider recognition workers and project team partners to engage in a Lean G practitioners recognize that the industry is inefficient. demonstrate the business advantages of Lean: customer andsatisfaction, reduced costs and schedules. and profit margin, higher quality construction, greater nation of factors such as improved reliability of outcome important benefit they gain from Lean, ability to succeed in a competitive market is the most Lean experts in the in-depth interviews agree that their Lean of Benefit Important Most the Is Competitive More Firms Making iv www.construction.com T en the cultural challenges posed in encouraging he responses of Lean practitioners in the survey also 55% Non-Practitioners 5% 14% 26% due to a combi- Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency

■ ■ ■ ■ ■ ■ about Lean in the industry: titioners alike reinforce the need for greater education implementation reported by practitioners and non-prac- The most important challenges to Lean adoption and Challenges to better implementation. benefit of Lean, would help to align expectations and lead recognize the impact on competitiveness, the greatest tion of Lean practices. improved profitability/reducedcost due to their adop- productivity and almost two thirds (64%) have achieved ners, reported by the highest percentage of Lean practitio- adopt Lean practices. (81%) would have a strong influence on the decision to itability/reduced costs (83%) and greater productivity agree that knowing that they could have greater prof- i A Among Non-Practitioners AdoptionEncourage That Will Benefits Executive Summary benefits offered by Lean. very enthusiastic and engaged after they experience the lenge, although most acknowledge that employees grow Lean experts also cite employee resistance as a key chal- construction schedules enabled by a Lean approach. that clients are increasingly expecting the shortened necessity. of Lean, it may evolve from a competitive advantage to a I mplemented any Lean practices, n ■ ■ ■ ■ ■ ■ 39% of non-practitioners by more than two-thirds, from 24 to seven. project reduced the number of man hours per headwall prefabrication efforts for headwalls on a hospital $2,000 but saved $50,000 in labor costs projects. Lack of industry understanding of Lean: Selected by Lack of knowledge: Selected by 47% of practitioners Boldt Construction’s active coordination of their Rosendin Electric’s value stream mapping study cost 80% report greater customer satisfaction. 84% find that adopting Lean has led to higher quality mong firms that are familiarwith Lean but have not yet fact, as more owners become familiar with the impact I Case studies also reveal specificbenefits of Lean. t is critical to note that while these are not the benefits over three quarters (77%) have achieved greater Eighty-six percent of Lean practitioners find However, encouraging firms to

continued the highest percentage Mc Graw Hill Construction Hill Graw

nally and externally. tool that allows them to share data effectively both inter- highly collaborative contractors reveal that there is no seeking greater efficiencies, partners to yield improved schedules and reliability. Planner depend on commitments from all project team and fabricators. and beyond individual firms,especially with owners needed that allow more intensive data-sharing within data sharing with external partners. conducted on custom-built tools, but these do not enable analyze data to improve a firm’sperformance. members is critical to collaboration, as is the ability to firms find that it supports theirefficiency efforts. four percent of contractors use an ERP, and 65% of those business functions like finance and procurement. resource planning ( tion as critical to their Lean approach. Lean experts in the in-depth interviews identify collabora- Collaboration Tools Supporting Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: ( Lean Practitioners byReported aBenefits of High Percentage Better RiskManagement Greater Protability/ReducedCosts Greater Productivity Reduced ProjectSchedule Higher QualityConstruction Greater CustomerSatisfaction Improved Safety 21% 30% 33% 34% 36% 38% 39% 3_1_ES_Bens_#01.eps B y www.construction.com High LevelofAchievement T D he Level Level of es ability to exchange data among project team pite the advantages an 50% A ch 34% ievement) 44% 40% ER 48% E 42% 38% P) ve

systems connect project data to n internal data-sharing is best in-depth interviews with ER MediumLevel ofAchievement P offers offers contractors 64% Better tools are S tr 71% ategies like Last 74% SmartMarket Report SmartMarket 77% 77% 80% E 84% nt Thirty- erprise Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Recommendations but collaborative efforts next recommendation), Lean approaches (see the tial to the success of many Collaboration is essen- ■ ■ Recommendations Overall market. a challenging even in succeed, to ability their improve will and how it why beneficial it is construction, Lean about deal a great learn to needs still industry thatthe demonstrate studyThe findings or highly efficient. try processes are efficient that construction indus- not familiar with Lean find F build project. in a traditional design-bid- the inefficiencies inherent they must first recognize to adopt Lean practices, tors to recognize the need that, in order for contrac- fi of continual improvement promoting the philosophy efficiencies and by actively strate the need for greater ing research to demon- about Lean, by sponsor- offering more information tions have a role to play by lem. help address this prob- SmartMarket Report SmartMarket ■ ■ ift nding strongly suggests C and internal N th E N E #2: #1: Provide T ffi duc oll eed eed y-fivepercent of those he at Su C Industry Industry associa- reate Software industry overall can ciency aboration ation on the for for Greater pp E ort xte

T s rnal his the . J to improve schedules and nies, and decisions made from multiple compa- dination among teams involves intensive coor- A Man of materials and services and construction process. holistic view of the design require taking a more ■ Recommendations Contractor struction industry. collaboration in the con- the trend toward greater better tools that support opportunity to create Software firms have an ing interoperability issues. and work around ongo- invest in custom solutions the file level, unless they the data level rather than to share information at laborative contractors, ing, even for highly col- the project. other firms working on bers within a firm andwith among project team mem- track information, both the ability to share and must be supported with ■ ust t App C #1: co However, it is challeng- o Maxi oll - nstruction project y Lean practices T McG I n- roa ake a aborative T raw Hill Construction Hill raw ime ch to m deliveries ize Gain L ean s

to a project. entirely different approach their strategy. their employees as part of consider how to engage to adopt Lean need to Therefore, firmsseeking efficiently as theycan be. they are not working as initially resist the idea that experienced workers may T craft workers in the field. ect, from management to workers involved in a proj- ment that must engage all to continuous improve- tices; it is a commitment limited to individual prac- Lean construction is not Lean practices. the full benefits of their atively in order to achieve Firms must work collabor- workers’ experiences on it. the overall project and his on a project, improves the work of other trades includes understanding ers’ “relatedness,” which that increasing his work- depth interviews affirms one Lean expert in the in- project team. have to include the entire ■ ■ his L N C a #2:

ean ult nd Plan for the www.construction.com ece means taking an R eco ure

ss A do ary g F C nize p or I han n a tio for example, ddition, n g F e ull buy-in. to encourage employee ect can be a powerful way Working on one Lean proj- company-wide approach. now considering a broader project level, but many are implementing Lean at the report that they are still in the in-depth interviews Most of the Lean experts ■ benefit of Lean adoption. innovation as an important employee engagement and also describe increased begins at the worker level. be made. where improvements can step of the process to see worker level, tracking each lyzing processes at the understanding and ana- ciencies will benefit from seeking to improve effi- vidual components. dedicated to install indi- sary, down to man hours granular level is neces- data collection at the most in the in-depth interviews, A I mpr ■ D Po Gra #3: cco S ata eve ss oving efficiencies best T rding to Lean experts nular rack and Share ral Lean experts ibl at the Mo

n e L eve Firms s l t Data:Data:SectionIntroduction Hed1

he construction industry is currently seek- ta ing ways to improve how it does business. da Note About the Data

y McGraw Hill Construction has examined many The data and analysis in this report are c n of these rising trends, including improved risk based on two studies, conducted in Septem- ie ber 2013. c i Tmanagement, the use of prefabrication, the support of col- ff laboration through improved information mobility and the ■■A series of qualitative in-depth interviews E t rise of BIM with its profound implications for altering exist- conducted by phone and in person with 10 c ing design and construction processes. Lean construction experts on Lean and four advanced users of oje and integrated data-enhanced collaboration bring together technologies that support collaboration. Pr

these elements and help to advance the industry. ■■A quantitative online survey of 193 contractors ase A simple definition of Lean construction is the elim- from the McGraw Hill Construction Contrac- re ination of waste from the processes of designing and tor’s Panel and from the Lean Construction c n

I constructing buildings, but that definition does not capture Institute (LCI). to the essentially transformative nature of Lean for the indus- The primary goal of the qualitative and es try. As is clearly revealed in the qualitative study of Lean quantitative Lean studies was to examine c

ti experts featured in this report, true adoption of Lean the experience of those who have engaged c with Lean to understand how they are a demands changing the culture of an organization and

Pr implementing it in their organizations, the embracing a collaborative approach. sophistication and comprehensiveness of ed Because this level of commitment and change manage- c their approach to Lean, the challenges they ment is daunting, the industry needs to understand not an encounter and the benefits they have experi-

dv only the need for Lean to address inefficiencies inherent enced as a result of the use of Lean practices.

A in current construction processes, but also the range of d ■■In order to gauge their involvement with Lean, potent benefits that come from pursuing a Lean approach. an respondents were asked whether they were None of the experts find this process to be easy, but all find familiar with or have implemented the follow- that their firms are not only more competitive as a result, ing Lean practices: Lean construction, Toyota but they also see increased levels of engagement and inno- oration Way, Six Sigma, Last Planner System®, Just- vation as their companies dramatically improve. ab In-Time delivery or pull planning.

ll Construction has always been an industry with tight ■■Firms were then analyzed in three groups

Co margins, and the prolonged recession from which the based on their responses: industry has begun slowly to emerge has caused many • Implemented Lean Practices: Use at least one to consider how to improve their businesses. In this of the practices environment, collaboration has become increasingly • Familiar with Lean Practices: Familiar with veraging important. Most in the industry currently regard collabora- Le

at least one of the practices, but has not tion rather narrowly, confined to the key players in design implemented any on: and construction. However, a few advanced practitioners ti • Not Familiar with Lean Practices: Not familiar c are looking beyond these traditional players to collabora- with any of the practices tive efforts with fabricators and building owners, not just in design and construction, but across the lifecycle of the The use of the contractor panel provided a representative sample of contracting firms buildings they construct. Constru for the survey. Among that representative For these collaborative efforts to bear fruit, an organiza- sample, 28% have implemented at least one

Lean tion needs to be able to accomplish the following: analyze practice; 35% are familiar with Lean but not data across the breadth of its business; create accu- implemented any practices; and 37% are not rate schedules based on an in-depth understanding of its familiar with Lean. processes; and share data effectively with project team The qualitative study of technology- members. These efforts depend on the use of data integra- focused data integration concentrated primarily on technologies like Enterprise tion systems, which can improve processes in Lean and Resource Planning systems, which the advance the construction industry into a new age of effi- experts participating in the research have ciency and profitability. used to enhance their ability to collaborate.

McGraw Hill Construction 9 www.construction.com SmartMarket Report Data:Lean Practices

Awareness and Use of Key Lean Construction Approaches From Manufacturing and Last Planner®

While there are many practices currently used in the Familiarity With or Implementation ta industry to help the construction industry become more

da of Lean Practices

y Lean, the core, central philosophies, such as Toyota Way,

c Source: McGraw Hill Construction, 2013 n Six Sigma and Just-In-Time first emerged from the manu- ie

c Not Familiar With Familiar With Implemented

i facturing sector. Many engaged in Lean construction ff actively employ the principles behind these approaches E Lean Construction t in their pursuit of Lean at their organizations, and they are c also using tools created specifically for the construction 30% 27% 43% industry, including the Last Planner System, developed Pull Planning by the Lean Construction Institute, and the strategy of pull 45% 19% 36% aseProje planning included in Last Planner. See the glossary on re page 3 for definitions of the specific Lean approaches. Last Planner System® c n I The chart to the right represents the level of awareness 47% 23% 30%

to and use of the core six practices by all the survey respon- Just-In-Time es dents. The analysis of Lean practitioners throughout the c 35% 35% 30% ti rest of the data analysis from this survey is drawn from c those who report having implemented at least one of the Toyota Way

Pra Lean practices represented in the chart. 43% 31% 26% ed The main goal of this study is to consider the c Six Sigma impact of Lean practices on firms that have adopted an 40% 54% 6%

dv them. Therefore, it is important that 37% of the survey A respondents are also members of the Lean Construction Institute, who have a broader awareness of Lean and are trend. Because of the intensively interrelated nature more likely to have initiated some of these practices at o1_1_PR_B4_FamUseofPracticesf construction processes on (2)_#02.eps a jobsite, lack of overall their organizations. (See page 56 for more information.) industry familiarity or understanding of Lean can have Including these firms allowed the overall number of Lean a significant adverse effect on companies attempting orationand practitioners who participated to provide insights on this to implement a Lean approach. In fact, one of the Lean ab

ll emerging trend. experts who participated in the in-depth interviews The remaining 63% , on the other hand, provide a commented that one of the biggest changes he hopes to representative sample of the industry. Only 28% of this see in the next five years is a reduction in the necessity representative sample have implemented Lean and 37% for him to proselytize about Lean to other project team are not familiar with any of the practices. The responses members. (See page 25 for more information.) from this representative sample are provided in the discussion of specific Lean practices to reveal the state of Lean Approaches That Originated in on:Leveraging Co awareness of the industry at large about these practices. the Manufacturing Sector ti c One key distinction of most of the approaches to Lean Lean Construction that are based on the manufacturing sector, compared Given the variety of Lean practices currently used by to those developed for the construction industry, is that firms in the construction industry, it is not surprising that there is a much higher awareness of these approaches, the overall category of Lean construction has the widest but not a higher implementation. One reason for this

LeanConstru level of implementation of any of these approaches. In may be suggested by the experts from the in-depth inter- fact, nearly half (43%) report that they have implemented views, who suggest that approaches like Toyota Way and Lean construction in some way at their organization. Six Sigma offer philosophies that underpin their efforts, However, it is worth noting that, among a represen- rather than practices they directly implement. tative sample of the industry, 48% are not familiar with However, this finding is also a point of caution.A ppli- the broad, overarching concept of Lean construction. cation of construction-specific tools without the rigor This finding is important because it demonstrates that inherent in the manufacturing-derived approaches can for much of the industry, Lean is at best still an emerging be too limited.

SmartMarket Report McGraw Hill Construction 10 www.construction.com Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

from Manufacturing and Last Planner ease of implementation or the results they see. the ones that they prefer, whether that is due to the and choosing among options within approaches, finding finding is very telling. pull planning is one step in the Last Planner using pull planning (36%) than Last Planner (30%). manufacturing approaches. pull planning are more likely to implement it than the contractors who become familiar with Last Planner and than are familiar with remaining firms are not familiarwith these approaches I T t encouraging Lean adoption. company is one of the biggest hurdles they face in phy, the benefits to be achieved from Lean are truncated. ■ ■ ■ t suggests that most firms are not at thepoint of a broad of these approaches is roughly equivalent to the S T Approaches Lean Construction-Specific A Lean Practices n- ion-specific approaches to Lean are theLast Planner hat without a companywide adoption of a Lean philoso- ■ ■ ■ wo of the most popular and far-reaching of the construc- he ys approach to Lean. than a philosophical approach underpinning a firm’s is more immediately applicable to construction, rather due in part to the fact that this is a defined system that iar with mented of the manufacturing approaches. approach Lean, including the adoption of specific familiar with J T representative industry sample, it. broadly recognized, with 38% reporting familiarity with U terminology and discussion throughout businesses in the all respondents actually have implemented of the applicability of this approach to construction.their firms, suggesting that the industry is not convinced Six Sigma: T me: Just-In- wareness and Use of Key Lean Construction T oy ap oyota Way: Interestingly, a higher percentage of firms report T . T S tem and pull planning. y also reveal that this paradigm shift within their im he interviews with the Lean experts demonstrate hi . ota Way has informed many of the ways they anese terms associated with this approach. However, despite the broad familiarity, only 5% of e approach, but a far larger percentage of the s is no doubt due to the permeation of T S i ix

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S ix S

S ys ig tem are more ma. SmartMarket Report SmartMarket T ® hi s finding Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data ■ with a focus on specific tools andstrategies. familiar with but not engaged in Lean think of it tactically, with a focus on its main objectives, and those who are those who are engaged in Lean think of it strategically, f B that define a Lean approach. practices were asked to suggest project-specific elements i three years. S from manufacturing, including the benefits it offers. ners that have worked with firms using this approach of which may increase the awareness of non-Lean practitio- adoption than these tools. general category of Lean construction sees slightly lower companywide Lean philosophies. tion of Lean on a project-by-project basis than in broader, added to their existing processes and in a tactical adop- engaged in Lean are most interested in tools that can be for the previous finding (see above) that firms notyet construction industry, which provides further support B 28% implementing pull planning in the next three years. of the firms expecting to implementLast Planner and the highest level of future adoption, them, the Last Planner System® and pull planning have A of Key Lean Construction Practices Expected Use in the Next Three Years Elements That Define a Lean Approach Lean Practices SmartMarket Report SmartMarket ar with Lean practices but that have not implemented amiliar with Lean but have not implemented any Lean ■ ig oth Lean practitioners and the respondents who are ot to Lean Practitioners Project-Specific Elements that mong the construction firms that report being famil- • 22% mention scheduling efficient • 29% mention or collaboration project teams • 32% mention waste reduction F Last Planner is also a highly collaborative process, ma, and none expect to use h practices have been specifically developed for the ew firms are interested in the Lean practices drawn

continued T he T J oy us results demonstrate that D E efi ota Way in the next t- Mc ve I with over one third n- ne Lean Graw Hill Construction Hill Graw n the broad, T im e and A cc S ording ix

procurement, better communication and pull planning. include labor/subcontractor scheduling, materials O C ■ 1_2_PR_D1_PracticesPlanned_#02.eps ( by 2016 Firms Planning to Lean Practices Implement Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: Toyota Way Six Sigma Last PlannerSystem® Lean Construction Just-In-Time Pull Planning 0% A ■ Lean Practices ing to Project-Specific Elements that urrently urrently th • 25% mention project planning • 25% mention crew sizing • 29% mention materials management cc 3% www.construction.com er elements mentioned by less than 20% of both ording ording to 5% 6% T ho I se Familiar with Lean But Not Implementing mp 13% lementing lementing Practices) T ho se se F ami liar with 28% D efi ne Lean B ut

N A ot ot cc ord- Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

nize collaboration as critical to the practice of Lean. in-depth interviews with Lean experts, who recog- contractors. try toward greater collaboration, especially among al are the most widely known of the five practices. firms tobe morecollaborative, andtwo out of those three additional practices included in the survey encourage that emphasize collaboration. est level of awareness and use occurs for the practices While none of the practices are widely known, the great- Collaboration That Enhance Practices A Awareness and Use of Additional Lean Practices Lean Practices ( do, demonstrating their recognition of this growing trend. more with design firms and owners than theycurrently specialty trade contractors are expecting to collaborate Mobility SmartMarket Report cally help with the construction process. industry to aggressively promote the tools that specifi- approaches. from 39% to 64%, are not familiar with these individual the industry as a whole, a large percentage, ranging tion Institute and thus more familiar with Lean than of the respondents are members of the Lean Construc- T or implementation of a select group of these practices. specific work processes. other project team members and seeking efficiencies in good decision-making, engaging collaboratively with process, including but not exclusive to tools that aid with e approach (see page 24). or by example in the benefits they reap from their Lean nies, either actively to improve their own processes, the Lean process among other construction compa- interviews suggest, Lean firms are often advocates for especially in these collaborative ways. selves may have worked with Lean companies that have, many firms that have not adopted Lean practices them- collaboration may be more widely recognized is that S nt practices to eliminate waste from the construction he Lean construction approach encompasses many differ- so supports a general trend in the construction indus- ee T R O findings demonstrate that, despite the fact that 38% hi es ne page 55 for more information.) s findingis reinforced by the findings of the pondents were asked about their familiarity with possible reason that the practices that enhance

I T n hi fact, the findings of the recent s clearly demonstrates the need for the

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Source: McGra Source: Practices Lean Construction Additional of With Familiarity and Implementation out of the remaining four practices. that have used them (23%) is roughly equivalent allto thethree practices included in this question, the ofpercentage respondents are familiar with multi-party contracts of construction associations. the construction industry, from design to encouraging greater collaboration by all sectors of T project, are the most well known of all the practices. members share the risks and rewards of the entire Mu Mul actively engaged in using this approach. which suggests that many who know about it are still not highest level of recognition of the practices surveyed, out multi-party contracts, but it also has the second project. as the basis around which to build the design for the cycle costs, sustainability, operations and other factors project team uses the owners’ targets for budget, life- TV Targe many firms associate with legally binding collaboration.and the concern over increasing their exposure to riskparty thatcontracts that they favor one player over thesurprising, rest given the debate around some existing multi- Choosing byAdvantages Big Room Value StreamMapping Multi-Party Contracts Target Value Design 64% 62% 54% 39% 47% 1_3_PR_C4D8E3OtherPractices_#02.eps hi Not FamiliarWith D However, despite the fact that the highest percentage s is no doubt due to the level of attention given to www.construction.com lti-party lti-party contracts, in which all project team i t s a collaborative approach in which the entire i- T t w Hill Construction, 2013 Construction, Hill w Par he Value Design (TVD) Design Value percentage of respondents using t y y Con 38% Familiar With t ra

29% ct 25% s 18% 21%

T hi Implemented s finding is not 24% 23% 21% 20% SmartMarket Report SmartMarket 15% T V D e dges Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data T a big room. be a powerful way to promote a new approach like using practitioners. tice get invited into the big room by more advanced Lean expected in the future, as firms not familiarwith this practice, they typically engage in it, at least to some degree. possible that once firmsbecome familiarwith this prac- which are far more widely known. the same percentage (20%) as the other two practices, iar with it but have not used it, and it is utilized by almost it has the lowest percentage of firms (18%) that are famil- tors (62%) that are not familiar with it. project planning, has a very high percentage of contrac- tion, whether for the duration of the project or for initial entire project team in one location to enhance collabora- A Lean Practices Big Big construction industry (see page 19). players, is a critical factor for improving efficiency in the which would include one that shares risk across multiple i SmartMarket Report SmartMarket nterviews note that having a contract that favors Lean, hi wareness and Use of T T s practice, which involves physically co-locating an rade contractors that participated in the in-depth hi R s finding does imply thatwider adoptioncan be oo m D ir

ect ect experience of the benefits gainedcan A dd T Mc itional Lean Practices hi Graw On the other hand, s suggests that it is

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in individual work processes. ( stream mapping, Just under half of the respondents are familiar Value with value Practices Other Choosing by Choosing effectively manage the project schedule. that they have other Lean practices already in place to commit the upfront man hours, which may often require the investment of time required, a firm mustbe able to be experienced. While these benefitscan far exceed construction and therefore before the full benefitcan requires a commitment of additional time before with it and those that actually have used this approach. stream mapping, see the case study on page 20.) making first published in 1999. r implementation as well. familiarity among the respondents and the lowest level of emainder are nearly split between those that are familiar

Like many Lean practices, value stream mapping www.construction.com continued St re A b dv a y y m a technique for finding efficiencies antages is an approach to decision- Ad M v a an pp t in ag F g or I es t has the lowest level of an example of value T he Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

■ ■ ■ a T Years Respondents by Most Three Than for More Undertaken Practices employing these practices for more than three years. reveal that a large percentage of respondents have been rication and optimization of crew sizes, and the data frequent, regular meetings with workers onsite, prefab- themselves to be pursuing Lean, firms have been using for a longer period of time. are intended to increase efficiency havebeen adopted to the construction industry, many of the practices that While taking a formal Lean approach is relatively new Practices Adopted to Increase Efficiency Lean Practices Lean. ( l higher, the difference is not statistically significant. While the percentage of Lean practitioners is slightly training workers with preparatory tools and methods. have not implemented any of the key Lean practices is One additional practice reported widely by firms that arger percentage also report having used this approach ■ ■ ■ lso evident among the firms that have not implemented he wider industry adoption of these three practices is focus on frequent site meetings. safety practices rather than eliminate waste may also be associated with Lean, but firms seeking to improve ings used to bring efficiencies to the worker level may tion processes. (See page 17.) essential strategy to eliminate waste in their construc- reveal, many Lean firms find prefabrication to be an Lean. of firms, this is not a practice associated solelywith prefabrication. Clearly, with such a high percentage findings of this report,with 80% ofcontractors using engaging in this practice are those unfamiliar with Lean. may explain why the highest percentage that report Lean may be more likely to make this distinction, which rather than previous experience. approaches such as pull planning and to rely on data are clear advantages to gathering additional input from of their crews. However, to truly gain efficiencies, there Lean practices, would feel that they optimize the size most contractors, especially those not familiar with any or modularization. contractors included in that study used prefabrication ization SmartMarket Report Optimization of Crew Sizes: Prefabrication: Weekly or S However, as the Lean expert in-depth interviews ee chart on the following page.) D ai ly Meetings with Workers: T he T

2011 Prefabrication and Modular- hi s is roughly consistent with the

continued Long before they considered revealed that 84% of the I t is not surprising that F McGraw ir ms implementing

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Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: Used by Contractors to Advanced Practices Achieve Efficiency are also those more reliant on effective data gathering. and GPS tracking of materials, tools and equipment— more recently—studies of worker ergonomics/activities Not surprisingly, the practices that have been adopted Years Three Last the in Respondents by More Adopted Practices percentage of respondents is has also been in use for more than three years by a larger Lean practitioners that is statistically significant and that impact on building performance. workers to handle green technologies for maximum able practice may also spend additional time preparing reasons, and some firmswith an advanced green/sustain- that. Contractors may also prepare workers for safety focused on eliminating waste, even if they help achieve using it a shorter period of time. for more than three years versus those that have been Lean practices to be adopted in the industry. ery. Worker Ergonomics/Activities Creation of Efciencies Using Studies of Methods (e.g.,Drills) Training Workers withPrepartoryTools/ Just-In-Time MaterialsDelivery Optimizing CrewSizes Offsite Prefabrication Weekly orDailyMeetingswithWorkers GPS-Control ofMaterials,Tools, Equipment 10% 14% 31% 36% 45% 50% 50% 1_4_PR_C3D7E4AdvancedPractices_#01.eps Used for More than 3 Years T A www.construction.com T he ga hi 22% one practice that has a higher level of use among in, these kinds of preparations may not always be s finding suggests that this is one of the earlier 21% 23% 32% 35% 28% 37%

30% 38% 54% Used in the Last 3 Years J us t- 64% I n- T im e material deliv- 80% SmartMarket Report SmartMarket 82% 88% Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data dents that have not implemented Lean. this activity, more than double the percentage of respon- explain why 50% of Lean practitioners report engaging in the in-depth interviews reveal. (See page 18.) and to find new processes, as the the Lean experts in can also be critical to findefficiencies at the worker level time-consuming, manual task without the right tools. A ■ ■ nformation Mobility SmartMarket Report T ners, none of the respondents report using 4 It is noteworthy that, even among the Lean practitio- Respondents by Not Undertaken Practices Practices Lean Practices it on individual projects. essential to be able to analyze this data, not just to gather A among Lean practitioners and non-practitioners alike. T that better tools are still needed to support thesesystems efforts. supporting those efforts, although it also constructionreveals site has been increasing with new tools suggetsand that the ability to gather and analyze data from the report report doing 4 firms. (See page 17.) While a few of these experts do the importance of BIM to implementing Lean at their viewed in the in-depth interviews frequently mention modeling or 5 results reveal that this is still a highly limited practice. SmartMarket Report SmartMarket ■ ■ he 2013 he GPS Studies of Worker Ergonomics/ ga na data suggest that this is still an emerging practice in, to use this information to findefficiencies, it is lyzing data on worker ergonomics/activities can be a T racking of Materials, I A D D do c

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Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: ( Used by Contractors to Advanced Practices Achieve Efficiency GPS-Control ofMaterials,Tools, Equipment of Worker Ergonomics/Activities Creation ofEfcienciesUsingStudies Prepartory Tools/Methods (e.g.,Drills) Training Workers with Just-In-Time MaterialsDelivery Optimizing CrewSizes Offsite Prefabrication Weekly orDailyMeetingswithWorkers 2_1_PR_C3D7E4AdvPracticesByLeanAdop_#01.eps B Not FamiliarwithLeanPractices Familiar withLeanPractices Implemented LeanPractices y www.construction.com Level Level of Lean 19% 23% 28% 32% E 38% nga 43% 46% gement) 50% 50% 56% 61% 68% 71% 72% 77% 78% 81% 88% 90% 91% 98% Data: Lean Practices

In-Depth Interview Findings: Adoption of Lean Practices

t In-depth interviews with Lean experts reveal efforts that they have used ta da

por to improve efficiency, the opportunities they see for further improvement, y re

and the specific Lean systems and tools that they adopted. c n of ie c le i t ff Ti E n the effort to bring Lean to planning and detailing work. In their efficiency efforts than the GCs ct

je the industry, contractors are particular, GCs noted that detailed do, with nearly all the respondents

ro employing a broad mix of prin- modeling is central to coordinating emphasizing this as a key strategy. P e ciples, processes and tools for and detailing offsite prefabrication. A critical difference between the as ILean construction. While there are ■■Prefabrication/modularization: general and trade contractors is that re some more commonly adopted Most GCs said they were pushing trade contractors place more empha- c n

I means and methods, many compa- for more offsite prefabrication on sis on the work of the employees. o t nies are seeking their own unique their jobs, either from their own Daily work or project assessments s e solutions. Lean principles are also craft workers or subcontractors. are also mentioned by trade con- c i ■■ t being applied by companies at vari- Centralized data: At both the tractors as key strategies, and these

ac ous levels—from the field to the back project and company level, GCs are efforts are typically linked with an r

P office. Given the broad and diverse looking to centralize their data so emphasis on improving safety as d e approaches, companies are learn- that it can be easily shared. Most well as efficiency. c n ing that there is “no silver bullet” for struggle with integration issues, a v

d being Lean. and some employ custom solutions Areas of Opportunity for A to enable sharing.

d Greater Efficiency n Efficiency Efforts ■■Better preconstruction: Most GCs a General Contractors n focus on improving their precon-

io General Contractors While GCs are making improvements struction processes. Two GCs said at During the past five years, general in their field efforts, most say they they had reduced the time from or contractors (GCs) who have adopted see a lack of company-level efficien- start of preparation to site mobili- ab Lean principles and practices have cies in their approaches. Areas that

ll zation by more 75%. focused their efficiency efforts GCs say could be improved include: ■■ Co Collaborative delivery: Beyond mostly in the field. However, some ■■Internal process improvement g being Lean in their own practices, in advanced users are applying those ■■Better top-down support to facili- GCs push for collaboration among ag principles to their business pro- tate widespread adoption multiple partners on the project er cesses as well. In the coming years, ■■Better integration with partners

ev team to improve the level of effi- ■■

L these GCs expect to expand those Better automation of business ciency for the entire project. Some n: efforts at the corporate level. Exam- processes and reporting io GCs note the need for more owners ples of efficiency efforts mentioned ■■Company reorganization to align ct to embrace these delivery methods. by GCs include: with Lean strategies ru ■■Better planning: All GCs said that Specialty Trade st Specialty Trade improved planning efforts were Contractors

Con Contractors central to their Lean strategies. Specialty trade contractors are n Trade contractors also express con- a All had used The Last Planner engaged in many of the same e

L cern about consistent, company- System® for production planning in approaches to improve efficiency as wide application of the practices to the field. the GCs, including better planning, increase efficiency. At least one attri- ■■Advanced modeling: BIM has advanced modeling and collabora- butes this concern to the fact that become an increasingly common tive delivery. The trade contractors they still consider themselves rela- tool among GCs, and some also place even greater emphasis on tively early in the process of adopting emphasize that advanced uses of prefabrication as a critical portion of these more efficient practices. BIM facilitate Lean efforts when

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Photograhs Courtesy of Rosendin Electric Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency case study R detail every step of a process. a flow diagram documenting in high T t can be made to eliminate waste. identifies areaswhere improvements o VS Mapping Stream Through Identified Value Improvements Process budget. was the installation of pendant-hung nology, remain on the cutting edge of tech- on innovation and one that strives to time and cost. with ideas that would be able to save in-house study groups to come up was approaches they decided to pursue SmartMarket Report SmartMarket Light fixtures installed through ainstalled more Light process effective fixtures echnique was first originated by Achieving Savings Through Value Stream Mapping oy bserve every step of a process and T M, in its simplest term, sets out to ota and is a lean tool that employs he V al process they chose to study ue R A os s projects even more under to look at ways to bring their l osendin S enged by the projet owner a firm that prides itself endin tasked one of its tr eam Mapping ( A

s a result, one of the E lectric was chal- VS UCSF Cardiovascular Research Building Building Research Cardiovascular UCSF M) T . he Mc Graw Hill Construction Hill Graw how the process could be improved. open to their ideas and feedback on let the workers know that they were one’s work. that it was not a judgment on any- improvements in the process and that the management to let the workers know communication to come from upper v that they did. paper and writing down everything them with a stopwatch and a piece of because we were there watching faster than they normally would just want them to install the lights any municated to them that we didn’t of the ect manager and one of the leaders ( cular fluorescent lights at theCardiovas- the guys working in the field, first.” to have that honest conversation with got very positive feedback from the U ersity of California in J T C San Franci San os he SF R eph Leoncavallo, assistant proj- VS management team, as a result, ). es

VS A M earch s M study, says, “We com- a firststep, they needed T he S

study was looking for o

B communication also s it’s really important ui 20 co lding at the , ,

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f F ra or ncisco U nia ni- o and grabbing a wire nut. tion from someone, bathroom breaks spent, including answering a ques- sider when they are estimating time workers might not ordinarily con- cess, including activities that umenting every step of the pro- with notes. every activity was recorded along T Waste Identify to Account Taken Into Step Each field. done going forward. a process and to see what could be senior estimator at A w themselves and the company. ful and to do things the best way for ask people what they think.”. we’re saying: ‘what do you think?’ telling them they have to do this; “ T bservation record where a list of he nd e’re giving them buy-in. We’re not he that’s a big, big deal when you VS field team want tobe success- T he M started with setting up an y were excited to be part of T he group started doc- R os B ob endin states, T Weisman, he whole A nd continued UCSF Cardiovascular Building SAN FRANCISCO, California

case studycontinued

y process from start to finish was for installing the pendant-hung fluo- $50,000 savings against an overall c n recorded. The group repeated the rescent lights. According to project budget of $100 million was ie c i process four or five times to get a Leoncavallo, “We were looking at still considered significant by the ff good understanding of the installa- about 22 minutes of time that could owners. Especially when taking into E t tion process. be eliminated from each fixture account that overall only approxi- c As a next step, the current state installation, most of it due to elimi- mately $2,000 was spent on the VSM map was created, which involved nating the on-site [work on just one study, the time spent by the person taking the observation record and component of] a single fixture.S ome conducting the study. aseProje putting it down as a process map. of that time was non-value added, re

c The map essentially provided a high- and some of it was value added.” Value of the Process n I level overview of every step of the Rosendin communicated to the Leoncavallo finds the value of this

to process. After all the steps were manufacturer their need to prefabri- process exceeds the cost savings. “It es mapped out, the group went back cate the desired fixture and were not gives you an opportunity to go out c

ti and looked at the amount of time met with resistance. The manufac- there, observe, really see what’s going c each step took. Two levels of time turer had the capability to undertake on and eliminate waste, which is

Pra were recorded, non-value-added this for them and wanted to maintain going to improve your flow and pro- ed time and value-added time. Value- Rosendin’s business, so in the end, ductivity. It deepens the knowledge c added time is considered time that they included the additional steps of the installation process .... And the an

dv is spent directly contributing to the in their agreed-upon scope of work other thing is, it really improves com- A installation of the light fixture, such with no additional charge. While the munication between the field and as physically hanging the fixture. advantage of being a big player was management because you’re collabo- Non-value-added time, on the other certainly a factor in the manufactur- rating together on this solution.” n hand, is considered something that er’s cooperation in this process, this is could be done in the factory such as potentially an approach that any firm orationand installing an end cap, or it could be could benefit from. Leoncavallo says, ab

ll opening a box, a necessary activity, “I think [the decision of the manufac- but one that does not directly con- turer to cooperate is made on] a case- tribute to the light fixture being hung. by-case basis, but I think the biggest The team then analyzed each step lesson there is, if you don’t ask for in the process and identified areas something, you’ll never know.” stats Project Facts where processes could be improved and Figures and waste eliminated. These areas VSM Study Results on:Leveraging Co of improvements were displayed on in Project Budget Electrical Contractor ti Rosendin Construction c the map in highlighted yellow, a Lean Reduction technique known as Kaizen bursts. The time saved on this project as a Type of Project Research Building (Higher The areas of improvement that were result of prefabricating the light fix- Education) identified included nine steps in the ture resulted in the opportunity to process that could be eliminated as a reduce the project budget as the

LeanConstru result of getting the fixture prefabri- team had set out to do. Weisman cated by the manufacturer. says, “I was convinced that we could Impact of Using Value at least save 15 minutes per fixture Engineering Prefabricating Provides on 2,000 fixtures.S o 15 minutes ■■ Investment in conducting Key Opportunity for times 2,000 comes to 500 man hours, study: Approximately $2,000 Savings and our labor rate is close to $100 ■■ Savings resulting from Next, the team incorporated the an hour. So I was able to lower my improved process for installing Kaizen bursts into a future state map budget by $50,000.” light fixtures: $50,000 that displayed the improved process According to Weisman, the

McGraw Hill Construction 21 www.construction.com SmartMarket Report Data:Lean Benefits and Drivers

Efficiency of Construction Processes in the Industry and at Individual Firms

Efficiency of Construction Processes in Efficiency of Construction Processes in the ta Industry da the Construction Industry

y Much of the discussion around the need for greater adop- (By Level of Lean Engagement) c n tion of Lean in the construction industry presumes a Source: McGraw Hill Construction, 2013 ie c

i shared belief that the industry suffers from inefficient Implemented Lean Practices ff processes. The assumption that the industry needs to E Familiar with Lean Practices t improve its processes underlies the efforts to encourage c Not Familiar with Lean Practices cultural change in organizations and to invest in greater upfront costs in planning and scheduling. Inef cient/Highly Inef cient The study results, however, reveal a strong contrast in 62% aseProje the perception of the efficiency of the industry between 32% re Lean practitioners and firms unfamiliar with Lean. Sixty- c 14% n I two percent of the firms that have implemented Lean

to practices find that the industry as a whole is inefficient, Neutral es compared with just 14% of firms that are not familiar 19% c

ti with Lean. In addition, 55% of firms not familiar with Lean

c 28% find the industry to be efficient/very efficient. 26%

Pra This finding is significant because it demonstrates ed that to encourage wider Lean adoption across the Ef cient/Highly Ef cient c industry, simply demonstrating the benefits of using

an 19%

dv Lean practices may not be enough. The industry as a 40% A whole is unlikely to be willing to commit to the paradigm 55% shift involved in full Lean implementation unless most contractors agree that the need for such an approach is evident. orationand Efficiency of Construction Processes Efficiency1_11_BEN_C1D5E16EfficiencyofIndustry_ver.1_#01.eps of Construction Processes at ab

ll at the Respondents’ Firm Respondent’s Firm Sixty percent of all respondents consider their firms effi- (By Level of Lean Engagement) cient or very efficient. In contrast to their evaluation of Source: McGraw Hill Construction, 2013 the industry, there is also no statistically significant differ- Implemented Lean Practices ence in the firms’ evaluation of their efficiency, based on Familiar with Lean Practices their level of engagement with Lean. Not Familiar with Lean Practices It is worth noting that Lean practitioners are more on:Leveraging Co skeptical about the efficiency of their firms than the Inef cient/Highly Inef cient ti c other respondents, with 55% finding their firms efficient 17% compared with 69% of those not familiar with Lean. This 12% may at first seem surprising since these are the firms 12% that have implemented practices designed to eliminate waste. However, not only are these firms more attuned to Neutral

LeanConstru the waste inherent in construction processes, many are 28% also gathering data on the effectiveness of their current 26% processes. Therefore, Lean practitioners may have a 14% greater awareness of the inefficiencies they still need to tackle. This conclusion is supported by the in-depth Ef cient/Highly Ef cient interview with Lean experts, most of whom are still 55% actively engaged in seeking out opportunities for 60% greater efficiency. 69%

SmartMarket Report McGraw Hill Construction 22 www.construction.com 1_12_BEN_C2D6E17EfficiencyofFirm_ver.1_#01.eps Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

■ ■ in a couple of ways. Lean approaches reduce the need for a skilled workforce concerns had an impact on their decision to pursue Lean. about the availability of skilled workers agree that these construction as a profession by the next generation. current generation of leaders and the lack of interest in Market Report 2012 contributing to this workforce shortage, discussed in the recession no doubt exacerbated the problem. skilled workers entering the field, and in the long run, the during the recession masked the growing shortage of T some concern about the availability of skilled workers. Nearly all (92%) of the Lean practitioners express at least A Influence of Concerns About Skilled Worker Lean Benefitsand Drivers Lean practices. than it has been for the companies now implementing significant driver for firms to pursue Lean in the future as workforce concerns increase, it may become a more willing to take this alternative. are unwilling to do so, and 53% are only somewhat tional training has limited appeal alternative of using unskilled workers with some addi- to pursue work in certain, labor-constrained markets. workforce needs through Lean was necessary for them to Lean and another reporting that the reduction of their regarding this as the least important factor driving them the trades, the responses were divided, with some regarded workforce concerns as major drivers. in-depth interviews. None of the general contractors odds with the responses of most of the experts from the implement Lean practices. these concerns had a major impact on their decision to I t i ■ ■ he with fewer skill requirements. scratch, and putting together a kit of parts can be done rather than assembling complicated components from rication can result in the use of a “kit of parts” onsite, vidual projects. can result in requiring fewer workers to complete indi- improved efficiencies in worker activities ultimately Fewer workers: Less skilled work required onsite: vailability on the s notable that one quarter of the contractors find that O For the Lean practitioners in the survey, though, the severe level of layoffs in the construction industry ver Construction Industry Workforce Shortages Smart- two thirds (67%) of those that are concerned , are many and include the retirement of the T he precision of planning and D eci However, this findingis at T sion to Undertake Lean his . finding suggests that, T McGraw wen T he ty-three percent use of prefab-

Hil l

Con continued T he struction A mon factors g

(According to Lean Practitioners) Degree of Concern About Availability of Skilled Workers 2013 Construction, Hill McGraw Source: ( to Lean Undertake Worker Availability on the Decision of Influence About Skilled Concerns 1_15_DO_E13AvailofSkilledWkrs_#02.eps Concerned About the Availabili Decision to Undertake Lean (According to Lean Practitioners Impact of Concerns about Skilled Worker Availability on 23% Impact Major A cco www.construction.com 46% rding rding to Lean Practitioners) 8% 43% Impact Some 46% 30% Impact No

y of Skilled Workers) t Somewhat Concerned Very Concerned Not Concerned Sure Not 2% SmartMarket Report SmartMarket Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data ean Benefitsand Drivers D ata: B SmartMarket Report SmartMarket Cli their their businesses. as for key drivers improvement to constant and ensure the ability to the work desire collaboratively panies secure contracts. client influence,could also helpcom- this area. the desire to be seen as a leader in stay ahead of the competition and marketplace, including the need to how a company is perceived in the in construction, many are related to ing influen Client Lean for Drivers Important costs and reducing projects schedules. desire to reduce waste, such as cutting influence as a critical factor now, or not,” the contractor said. less of whether our clients ask for it “We’re implementing [Lean] regard- launches its initial Lean pursuits. much stronger role when a company G client influence is important, one ing teams to pursue Lean. While ents have taken a lead role in push- driver. identifying it as the most important influence as a driverwith one third struction adopt these principles for implementation to be successful. be to implementation for principles these adopt actively to need workers field leadership, firm by instituted be to need Lean employ to efforts while addition, In Lean. of drivers as impact of degree high a have all benefits business specific and leaders as seen being firms, their improving satisfaction, Client In-Depth Interview Findings: Drivers for Lean C O T O ents

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ean Benefitsand Drivers D ata: be GC While B I to do it.” added that it “would be a silly reason that it was not a driver for them and planning.” in using Last Planner and production a factor in its approach “especially the construction process. foisted on them by firms upstream in less impacted by schedule changes compete more effectively and be the way in which it allows them to tion for Lean, but only in terms of as a key motivator for their adop- siders decreased project schedule GCs laborers) skilled of (availability as W one contractor. for different reasons than Lean,” said ity and green are important to us but come, it’s not a driver. “ G of them,” the contractor said. methods to get there and this is one to this [higher] level. “We’re trying to take sustainability charge of sustainability measures. regularly works with executives in adoption at his company, says he Lean methods. tion site waste by half since adopting company has reduced its construc- driver. pect of improved sustainability as a ability of skilled labor is a long-term a driver. tion co mp et Cs or

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continued apply. efficient, many of the same drivers their projects and organizations more m A Practices Construction Lean Typical Beyond Pursue to Drivers of Lean. concern, it is not a short-term driver field. the initial efforts were focused on the struction projects for several years, panies that have pursued Lean con- evolved over time. for adopting these principles have from pursuing the job. laborers would have prevented them force onsite, the scarcity of skilled out the ability to reduce their work- example of a project in which, with- while another describes the specific the least influential factor discussed, ho div do ples and the focus on tools,” said one beyond the cookbook Lean approach understanding that you have to get “ “ zation.” you apply that to your entire organi- agement philosophy, which means and today it is about culture.” expect it on their projects. knowledgeable about Lean and especially as clients become more p I E redict that their drivers will evolve, s companies look to expand the t’ enu of options available to make T I ar ld, ing n s about looking at it as a man- ided. ra

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Benefits Achieved From Implementing Lean Practices According to Lean Practitioners

Over 70% of Lean practitioners report that they have BenefitsAchieved From Implementing Lean ta achieved at least a medium level of achievement on six Practices da

y benefits included in the study, all of which have signif- (According to Lean Practitioners) c n icant business implications. In order by percentage Source: McGraw Hill Construction, 2013 ie c

i selected, they are higher quality construction, greater High Level of Achievement Medium Level of Achievement ff customer satisfaction, improved safety, greater produc- E t tivity and better risk management. Four other benefits c Improved Safety rank in the high sixties. This is clear evidence that investments in Lean see strong returns. 39% 38% 77% Higher quality construction is reported by a larger Greater Customer Satisfaction aseProje percentage of those doing four or more Lean practices 38% 42% 80% re (92%) than those that are doing three or less (75%). This c

n Higher Quality Construction I finding suggests that a more comprehensive approach to 36% 48% 84%

to Lean allows better achievement of this benefit. es In addition, over one third note high levels of achieve- Reduced Project Schedule c

ti ment for four of the top benefits. Safety tops this list. In

c 34% 40% 74% the in-depth interviews with Lean experts, many find

Pra that the careful attention to planning and process to Greater Productivity ed eliminate waste and the focus on the work of the individ- 33% 44% 77% c ual worker also have strong safety impacts. One trade an Greater Protability/Reduced Costs

dv firm also reports that their efforts to improve safety initi-

A 30% 34% 64% ated their Lean implementation (see page 25). The percentage that report improved customer satis- More Focus by Supervisory Staff on faction is also quite high. This is not surprising since Managing Workers many of the other factors on which a large percentage 25% 40% 65% report a high level of achievement, such as higher quality Better Risk Management orationand construction, reduced project schedule and reduced cost ab 21% 50% 71%

ll often directly impact their clients. (See pages 29 and 30 for more information on how contractors view the degree Improved Sustainability/Reduced Waste to which project owners are the beneficiaries of reduced 20% 47% 67% schedules and costs.) This finding aligns with the key Greater Reliability of Information from finding in the in-depth interviews with Lean experts Other Parties that increasing their overall competitiveness is the main 20% 46% 66% benefit that firms achieve by adopting Lean, significantly Improved Lifecycle Cost/ on:Leveraging Co more important than schedule or cost savings on indi-

ti Cost of Ownership c vidual projects (see page 33). 9% 39% 48% The benefits gained by the owner rather than the contractor may explain why greater profitability/reduced costs has a lower percentage of firms reporting a medium level of achievement than many other benefits, but that greater competitiveness rather than greater profit- 1_5_BEN_E7MediumHigh_#02.eps

LeanConstru a comparatively greater percentage reporting a high ability is a critical benefit of Lean. achievement . This may suggest that firms either rate A significantly higher percentage of those imple- this highly because the savings from eliminating waste menting four or more Lean practices also report seeing accrue to their bottom line or they are less likely to rank it improved sustainability/reduced waste (78%) and well at all because they do not see the direct benefits.A s improved lifecycle cost (58%) than those doing three owners gain in familiarity with Lean, it is likely that their or less. These findings suggest greater awareness of expectations of performance in this area will continue to benefits less commonly associated with Lean by more increase, so it is important for the industry to recognize sophisticated Lean practitioners.

SmartMarket Report McGraw Hill Construction 26 www.construction.com Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

with and adoption of these practices. likely to provide will improve the industry’s experience that increased knowledge about the benefits Lean is most (see page 17). be an essential component of a successful Lean project Lean experts, many of whom consider collaboration to conclusion is supported by the in-depth interviews with of quality and customer satisfaction. more strongly aligned when it comes to the importance tempered expectation when it comes to productivity. in adopting Lean practices in the future have a more at a high level. and customer satisfaction, especially when considered fits achieved than factors like higher qualityconstruction productivity also ranks much lower in terms of the bene- ing productivity improvements (see page 26), but that a large percentage of contractors (77%) do report achiev- high productivity improvements. level of improved productivity, and 81% expected to see ity. with a high expectation of achieving greater productiv- Lean practitioners initiated Lean practices at their firm When Benefits Expected by Lean Practitioners Lean Benefitsand Drivers working collaboratively with other project partners. not be able to be in control of all their risks if they are ness not of processes on a construction site, a Lean firm may used for the project (see page 33). accruing to the owner, depending on the type of contract other players. Cost savings on Lean projects may land up factors, they also are heavily impacted by the influence of ment. results are profitability/reducedcosts and risk manage- with the percentage that have achieved a high level of percentage expecting a high level of benefitcompared a high expectation of achieving improved safety. safety ranks seventh in the percentage of firms that have level of improved safety from their use of Lean practices, the greatest percentage of contractors report a high expected relative to the other benefitsis safety. they can expect from their Lean adoption. from the onset by these firms as an importantbenefit Clearly, gaining a competitive advantage is recognized highly in the achieved benefits and the expectedbenefits. On the other hand, contractors’ expectations are T One benefit with a higher level of achievement than O N wo ve ea While strong results are reported by both of these other factors that are ranked more highly in the rall, the findings on expectations demonstrate rly all (98%) expected to see at least a medium T hey Implemented Lean Practices I t is critical that companies interested I G t McGraw is critical to note that iv

en the interrelated- B ot h of these rank

Hi ll

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Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: Benefits Improved LifecycleCost/CostofOwnership Greater ReliabilityofInformationfromOtherParties Improved Sustainability/ReducedWaste Better RiskManagement More FocusbySupervisoryStaffonManagingWorkers Greater Protability/ReducedCosts Greater Productivity Reduced ProjectSchedule Higher QualityConstruction Greater CustomerSatisfaction Improved Safety ( Lean When Practices They Implemented 23% 46% 51% 64% 48% 62% 81% 57% 66% 67% 57% 1_6_BEN_E6MediumHigh_#02.eps B y High ExpectationofBenet www.construction.com Level Level of Expected 39% E xp ectation) by Lean Practitioners 43%

37% 35% Medium ExpectationofBenet 32% 30% 29% 62% 27% 28% 22% SmartMarket Report SmartMarket 17% 85% 86% 87% 89% 89% 89% 91% 91% 94% 98% Lean Benefits and Drivers continued

Potential Benefits With a High Influence on Non-Practitioners for the Adoption of Lean Practices

Over half of the firms that are familiar with Lean but Potential Benefits with a High Influence on ata are not using any Lean practices find that nine different

d Non-Practitioners for the Adoption of Lean

y benefits from achieving Lean would be highly influen- Practices c

tial on their decision to use a Lean approach. While some Source: McGraw Hill Construction, 2013 en

ici factors do appear to influence a wider range of compa- Greater Protability/Reduced Costs nies, this finding does suggest that emphasizing the Eff range of benefits to be achieved by implementing Lean 83% ct will be an effective way to engage a broad swath of the Greater Productivity industry. Firms appear to be influenced most by factors 81% that impact their bottom line and their competitiveness, seProje but factors that help them improve the way work is done Greater Customer Satisfaction rea at their company—from improving safety to the ability of 70% c n supervisory staff to focus on managing employees—are Higher Quality Construction o I o t also important. 70% es The potential benefits with the greatest degree c of influence on these firms are similar to the benefits Better Risk Management cti expected by practitioners when they first implemented 65%

Pra Lean. Greater productivity and profitability are consid- Improved Safety ed ered the most influential drivers. The study results c 63% n clearly demonstrate that most contractors who have

dva implemented any Lean practices are experiencing these Reduced Project Schedule A benefits, but firms considering Lean need to make sure 58% the level of achievement they expect coincides with what and Greater Reliability of Information from others in the industry have achieved.

on Other Parties

ti Other critical benefits to encourage wider Lean 58% adoption among those familiar with Lean are greater ora b customer satisfaction and higher quality construction. More Focus by Supervisory Staff on a Managing Workers

ll These directly impact a firm’s reputation and their ability to be competitive, and they are among the highest of 53% Co g the benefits reported (see page 26). To encourage wider n Improved Sustainability/ gi Lean adoption, capturing these benefits in clear, quantifi- Reduced Waste able terms and widely publicizing them is likely to have a 33% broad impact in the industry. Improved Lifecycle Cost/ Levera Cost of Ownership on: Variation by Type of Firm 26% cti While the number of specialty trade contractors who are ru familiar with Lean but not implementing any Lean prac- t tices is too small to draw definitive conclusions, there is a clear trend for three factors to have a higher influence on 1_7_BEN_D3DriversNonPract_#01.eps trade contractors than on general contractors: greater In addition, even more than general contractors, trade

LeanCons productivity, improved safety and greater customer contractors frequently rely on their reputation and satisfaction. Trade firms have a greater focus on indi- shared experience with general contractors to be vidual workers in general, as is revealed in the in-depth selected for work. Building satisfaction among the interviews with Lean experts, which is why improved general contractors is a strong way for them to become productivity and safety are particularly critical to them. more competitive.

SmartMarket Report McGraw Hill Construction 28 www.construction.com Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

are clear trends that can be seen in the responses.some trades is too small to be statistically significant,number thereof Lean respondents who do not self-perform than general contractors that do not. however, have very different opinions on a few key points still experience strong business benefits. significant increases in profit from their adoption of Lean demonstrates that even firms that do not experience 14% who disagree. a direct increase in profitability to owners on their Lean projects than they do from agree that they benefit more fromcompetitive pricing value on their ability to compete. Forty-one percent to be even more valuable (see page 33). a consistent, reliable profit on projects, which they find instead of increased profit margins, they now experience achieve a higher profit margin. One also reports that benefits from their ability to help the generalcontractor highly than increased profit margins, so their business their ability to be competitive and win business more scheduling and other factors more reliable. when all project team members participate, which makes sense, given the fact that the best approach to Lean is increases their profit on projects. the adoption of Lean practices by their subcontractors line. disagree that the savings are contributing to their bottom Less than 10% of either general or trade contractors contributes to their bottom line and project profitability. that the savings they see from using Lean practices have implemented at least one key Lean practice agree clients, whether that is general contractors or owners? implementing Lean, or do they get passed along to their savings achieved improve the bottom line of the firm ■ the competitive edge they are afforded by Lean. efforts and more likely to find those profits valuabletrades than are more likely to see direct profits from demonstratetheir Lean that contractors who self-perform their own from the efficiencies achieved in pursuing Lean. is critical to understand how individual players benefit t G and Contractor Profit Margins Cost Savings From Lean Projects Lean Benefitsand Drivers o drive the adoption of Lean practices (see page 28), it ■ A iven the importance of project profitability in helping • G In the survey, general contractors also place a high T General (71%) and trade (72%) contractors who doption of Lean Increases Profit Margins on Projects Self-Perform Work: 68% Self-Perform ra en In addition, 59% of general contractors find that de contractors in the in-depth interviews value eral contractors who self-perform their own trades, T hi s is a critical findingbecause it , compared with just T McGraw hi E s finding makes ve n though the

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Cost Cost Cost Cost that do not, which could account for this finding. the trade contractor in the in-depth interviews, than those are able to better control their profit margins, similar to I Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: ( Profitability Line/Project Bottom Savings From toLean Contribute Firm’s Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: ( Increases GC’s Profit Margins Adoption of Lean Practices by Subcontractors 1_8_BEN_E8E9Profits_ver.2_#01.eps 1_8_BEN_E8E9Profits_ver.1_#01.eps t A A is possible that firms that self-perform their own trades • cc cc www.construction.com D 24% 33% ording ording to ording ording to o S S Don’t Know Disagree Neutral Agree Disagree Neutral Agree N av av ot Self-Perform Work: 39% ot Self-Perform 7% ings) ings) 4% 72% G G 59% C C 1% s that s that

R R ep ep ort ort ort ort I I nc nc reased Profits/ reased reased Profits/ reased SmartMarket Report SmartMarket Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data page 24). owners that have led the industry on Lean adoption (see than in one or two sectors like healthcare with engaged a shift from what they currently see occurring, other driver of Lean construction in the industry in the future, believe that owner mandates will be the most critical Lean, but they see a broad change occurring. Some just five years ago, most owners were not familiar with further light on this finding.Experts report that, even larger benefitfrom Lean. firms’competitiveness rather than direct profits is the due to the adoption of Lean practices in the industry. owners that projects can be done in shorter time frames nearly unanimous about the growing expectations of absorbed in their efforts to be more competitive. feeding their bottom line and schedule reductions cant overlap of firmswho both haveschedule reductions to the schedule savings. they are able to bid projects more competitively due about the same percentage of contractors report that on the profit they experience in their projects, and just due to their Lean practices do have a positive impact tors report that the schedule savings they experience are not mutually exclusive. order to win a project in a highly competitive market. it necessary to build those cost savings into their bid in negotiated project, or if the contractor has not deemed tations of the contractor, especially in the case of a factored the reduced amount of time into their expec- accrue to the contractor if the owner has not already and can increase profitability. However, thesavings only in the construction industry also cuts costs on projects R T a D The Impact on Contractors of Schedule Lean Benefitsand Drivers SmartMarket Report SmartMarket dopting Lean practices (see page 26), and saving time hi educed project schedule is one of the top benefits of ecreases However, T T s aligns with the previous finding that increasing their he he in-depth interviews with Lean experts shed study results suggest, though, that these options the findings also reveal that the industryis D

ue to the Clearly, there must be signifi- A A bo do ut two thirds of contrac- ption of Lean Practices Mc Graw Hill Construction Hill Graw

continued

Source: McGra Source: ( Practices Due to Decreases the Adoption of Lean The on of Impact Contractors Schedule 1_9_BEN_E10Schedule_#04.eps A Agree cc www.construction.com 3% 2% 26% 29% ording ording to Lean Practitioners) 11% w Hill Construction, 2013 Construction, Hill w 5% Neutral 86% 69% 65% 1% 1% 2% Disagree Expect Shorter Schedules Because Owners Increasingly Merely to Stay Competitive Firms Use Lean Practices Submit Successful Bids Competitive by Helping Them Due to Lean Make Firms More Decreases in Project Schedule on Projects Increase Firms’ Prot Margins Due to Lean Practices Directly Decreases in Project Schedule Don’t Know Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency

S the pany has been working closely with applications and workflows, thecom- products to function in model-based gies and head of new construction technolo- ucts. assemblies involving multiple prod- well as a number of prefabricated ucts, pipe and industrial mortars as insulation, gypsum, exterior prod- broad range of products, including 55 countries. F manufacturer headquartered in 1. create a building product manufacturers, to f A Descriptions Product of Standardization and construction. model-based design, fabrication emerging trend of highly efficient to support their leadership role in the a committed to supporting the CP cation, the company has long been constructive solutions and prefabri- to a product’s installed performance. wide range of other properties critical resistance, heat retention or any of a include mechanical strength, fire product characteristics. ary, available in (CP “Construction Products cal language” by introducing a common techni- ment of all construction products that “aims to ensure the free move- or digital versions of

http://europa.eu/legislation_summaries/other/l21184_en.htm) ra nd is now leveraging that platform nticipating their customers’ need S nce with a global presence in over D AI ai ), A MC nt- a piece of landmark legislation cc E uct manufacturers in the ince 1988, building prod- working to comply with the E G F ording to Laurent ur C, a ur ra ob Increasing Industry Efficiency With Digital opean opean ncois Pincemin, head of Configuration Multi-Product Assemblies ain is a building product T F 1 re he to describe and define F nch association of re y manufacture a U S nch, ni ta S on have been ndard ai G T D nt- ho er ir O ective” G man, se could D rt ob ic as, tion- ain D

McGraw load. waiting for users to find and down- built digital models and have them ers to invest in vast catalogs of pre- T products or configured assemblies. digital model versions of the selected the automatic creation by users of addresses that by allowing users to user’s need at hand. or too much information for the often either contain either too little built product models is that they comply with the standard dictionary. uct data that have been structured to on-demand, from underlying prod- generated and delivered quickly, customer’s specific needscan be functional, A from complementary product lines. configure morecomplex assemblies istics they need, as well as to virtually for products based on the character- construction professionals to search t S Efficiency Industry on Impact S models of building products. and others, developed parametric be a consistent reference as they, sive anticipates having a comprehen- end of 2014. maintenance process in place by the product properties and an ongoing and construction. participating in digital design user-friendly goal of all organizations for greater interoperability, a key nize their digital product offerings product manufacturers can harmo-

Hi ice further by allowing design and hi we aint- nd ll A U Headquartered in France in Headquartered

Co s avoids the need for manufactur- no si to make their offering even more dish and E nstruction I ng this dictionary, all building ur G ns ther common problem of pre- obain is advancing the prac- opean standard dictionary of tead, a model based on a Saint-Gobain S ai

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S ain is enabling ai nt- www.construction.com G ob AI ain MC C promoting national organizations that are all alignment with the many other inter- capability, possible can take advantage of this ing on its intended use. on-demand model will be, depend- control how simple or complex their just for individual practitioners. Lean principles industry-wide, not nerships to achieve the benefits of standards, collaborations and part- ingly recognizing the contribution of industry organizations, are increas- facturers, along with contractors and demonstrate that enlightened manu- extremely encouraging because they software software tools. for model exchange between various Classes) as an interoperable standard ules, to enable smaller “ with construction production sched- project can be manufactured in sync ucts and assemblies for an entire faster to install onsite. and provides assemblies that are reduces waste, improves efficiency work directly from the data. cutting and finishingequipment to ing by allowing computer-controlled engage in more efficient manufactur- teristics also helps ital descriptions of product charac- T Conclusion safety safety and project control. erate many benefits for time, labor, deliveries to the site, which can gen- hese efforts by T T o he

ensure that as many users as reliance on standardized dig- S IF ai C nt- ( I nd G S ai ob ustry ustry S nt- ai ain is working in SmartMarket Report SmartMarket nt- I G n J ob F fact, prod- us G ou ob ain are t-

T ndation

I ain to study case n- hi T s n im e” Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data T than general contractors. conducting more of these specific, objective measures in-depth in-depth interviews with Lean experts. of measuring the value obtained from Lean. to consider the value of having more standardized ways construction industry, the industry as a whole may need mented. do and the specific approaches to Lean they have imple- measured are customized based on the work the firms for companies to understand their Lean benefits. that there is no standardized approach currently in place success of their Lean practices. are aware of their profitability, not all track it to gauge the than half of the respondents. though, only increased profitabilityis measured by more from construction processes. ity of data gathered in the course of eliminating waste level of measurement is likely influenced by the availabil- determine the benefits they achieve from Lean. at least one of the measures provided in the survey to Eighty-eight percent of the respondents report using dollar value of work put-in-place per man hour. itability, reduced operating costs during construction and differences are statistically significant for increased prof- While there is a clear trend across multiple measures, the ar A Variation of Firm by Type Objective Measures of Lean Benefits Lean Benefitsand Drivers sive processes at the beginning of a project. implementation does typically involve more time-inten- by the need to demonstrate the results of Lean since its SmartMarket Report SmartMarket hus s the chart clearly indicates, specialty trade contractors e tracking metrics more widely on their use of Lean. • Trade contractors are far more focused on the rigor and • General contractors interviewed focus on subjective as However, the broad range of metrics used suggests T D improvements improvements (see page 35). then use that measure to work on continual process the being component part and installed, that he can must be done at the lowest level possible, down to their lean One practices. cautions that measures usefulness of the measures they toconduct furthering the the measures they mention (see page 35). and engagement removal of constraints being some of of their with Lean efforts, client employee satisfaction, well as objective measures to determine the success his esp , it is not surprising that trade contractors are findingis largelysupported by the findings of the ite the wide range of use of these metrics, A s t he use of Lean practices matures in the

A I t m lth ay also be impacted ough all contractors McG raw Hill Construction Hill raw

c o n t inued T F he act high ors

( of Benefits Lean Used to Measures Objective Determine 1_10_BEN_E11Metrics_#02.eps Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: Based onGeography, BuildingType orTrade Construction ScheduleBenchmark/Metric Increased Pro tability Reduced LifecycleEnergyCosts Reduced InsurancePremiums/Claims Per ManHour Dollar Value ofWork Put-In-Place Reduced Overhead Based onGeography, BuildingType orTrade Construction CostBenchmark/Metric Per Speci cTrade Reduced NumberofAccidents During Construction Reduced OperatingCosts A General Contractors Specialty Trade Contractors cco www.construction.com 10% rding rding to 12% 22% 24% 29% 29% F irm 33% 35% 36% 40% s by 44% 44% T 52% ype 56% 57% ) 64% 64% 84% Data: Lean Benefits and Drivers

In-Depth Interview Findings: Benefits of Adopting Lean Techniques

The greatest benefits reported by the Lean experts in the in-depth t ta interviews include the improved ability to compete in a challenging da por

market and higher levels of employee engagement. y re nc of ie c le i t ff Ti E irms that adopt Lean con- the culture of innovation [at their com- Improved safety ct

je struction techniques at their pany] active and prospering.” Numerous Lean techniques can con-

ro respective firms realize a tribute to safer worksites, includ- P e wide-ranging set of benefits. Benefits Achieved ing more predictable workflow, as FMost strikingly, experts in Lean con- All of the experts interviewed have cleaner sites, improved ergonom- re struction believe that use of these realized significant benefits by using ics and better material handling. nc

I techniques drives their success and Lean construction techniques, and In particular, contractors note that o t their ability to compete in a chal- there is strong consensus among prefabrication and modularization s e lenging market. them that all of the following benefits could improve safety by remov- c i t One expert says that Lean has are achieved from the use of Lean. ing work from the field and execut-

ac been a contributing factor in the coming it in a controlled environment. r Greater profitability/

P pany’s overall financial success in In fact, half of the trade contractors reduced costs ed recent years. “I can point to jobs find improved safety to be one of the c GCs all agree that project costs we’ve won because of our experience top two benefits from undertaking a an

v could be reduced by cutting waste. with Lean,” he said. “We’ve gotten Lean approach.

Ad For example, through better detail- work with repeat clients where we d ing, less materials could be used. Greater ability for implemented Lean, and they were an Similarly, better modeling could lead supervisory staff to n absolutely thrilled with the results,

io to reduced rework. Notably, GCs say focus on managing and they just handed us work. There at this does not necessarily translate workers are examples where trade contrac- or to greater profitability, particularly Better planning and greater predict- tors who have worked with us, have ab those who operate under guaranteed ability can lead to fewer conflicts in

ll had a better experience on our jobs maximum price contracts. “If there’s the field, freeing up staff for other

Co and as a result we get better pricing.” a savings on the job, it goes to the activities. A GC reports, “Previously Another contractor states that “if ng i owner,” said one contractor. to [adopting Lean techniques], 90% we didn’t do [Lean], we would have ag Several trade contractors also of the [field staff’s] day was spent struggled [finding] work.” Because er agree that they see project costs resolving conflicts and clashes

ev they made that commitment, though,

L reduced, but not all, and not con- between trades... That has been vir- : he was able to state definitively, “We n sistently on every project. One tually eliminated… Now they focus

io didn’t have a downturn.” advanced trade contractor, though, on production planning, smoother ct Others note that Lean construction finds that, even if the profit margins workflow, how to get the project ru promotes a higher level of engagement t are not frequently higher on Lean completed on time and working with by staff and project partners. “The big- ns projects, they are more certain: “Our the workers.” gest reward is that people get more Co margins have improved to expecta- And a trade contractor concurs, engaged in their work,” one expert said. an tion, so instead of taking a job at 4 “We have probably found a 60% e

L “They get more excited about coming or 5%, and being lucky to get 3%, increase in [a supervisor’s] ability in and doing things everyday. That turns we’re taking the job at 4 or 5%, and to directly manage the labor force,” into higher quality, better safety and we’re making 4 or 5%—maybe get- which he attributes to prefabrication the things that are tough to quantify.” ting a little extra, but not going and the ability to automate tasks Another impact that is hard to quantify below that.” like material takeoffs, ordering but noted by a trade contractor is that and logistics. the adoption of Lean practices “keeps

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Photograph courtesy of the Boldt Company Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency case study T Headwall on the specially designed cart, prepped foronHeadwall cart, designed the installation specially sustaining or improving quality. ule and safety on their projects while opportunities to improve cost, sched- where they have been able to find on others, prefabrication is one area collaboratively with trade partners self-perform many trades and work B ness and process development at Will Lichtig, vice president of busi- eral building projects, according to their business to bear on their gen- learned from the industrial side of to bring many of the lessons they SmartMarket Report SmartMarket ol dt. St. Elizabeth Hospital Five-Story Patient Tower and Connector Building Building Connector Tower and Patient Five-Story Hospital Elizabeth St. A s and they have been able delivery for over a decade, b he general contractors who een using Lean project Planning and Coordinating Prefabrication B oldt Company has

to Increase Project Profitability Mc Graw Hill Construction Hill Graw are evaluating prefabrication as an pr Lichtig reports that they use an to influence decisions during design. grated design process allows them makes sense. what level and kind of prefabrication ect, they first need to determine ery. He clarified that for each proj- integrated approach to project deliv- ciplined planning process and an fabrication on their projects: a dis- with intensive coordination of pre- tors that contribute to their success Lichtig reveals that there are two fac- Use Prefabrication for Effective Critical Approach Planning ocess to make sure that “when you Appleton, Wisconsin Appleton,

ei 36 ng part of an inte- www.construction.com A 3 conducted in Moose cation decisions. rigorous process on all their prefabri- which it was useful. use prefabrication and the degree to in order to make their decision to of schedule, safety, cost and quality ual element across the critical factors quality, and they look at each individ- cated items can impact schedule and chain. process is looking at the supply for a description of make sound decisions.” ( pened on the last project, to try to assumptions or what may have hap- sary research...rather than looking at option, you are doing all the neces- installed onsite. I the risk to the quality of the project. shop during that process, increasing they could not get the right seal in the prefabricated components because building should not be included in the panels that make up the skin of the determined that the insulated metal types and first-runstudies, they also schedule. However, through proto- implications for the remainder of that started, that would have significant ing was not enclosed before winter of the building, because if the build- elements of the exterior enclosure factor in the decision to prefabricate schedule became an important e at the gains they could obtain from the start that they would be looking tal in F Partners of Trade Selection the on of Logistics Impact ns xpansion of or the fourth and final phase of the F Part of that decision-making tead, that final element was or A example, in a project they T pp he leton W transportation of prefabri- S t.

T E I he , li they knew from zabeth’s hospi- A y use a similarly 3. J aw ) , Canada, S ee page 3 c ontinued St. Elizabeth Hospital appleton, Wisconsin

case studycontinued

y prefabrication because the owner of Waldron also describes taking into Finally, they consider the total cost c n the project challenged them specifi- account challenges that occur onsite of each solution, from the transpor- ie c i cally to see what they could accom- and using the planning process as an tation logistics to the reduction of ff plish by taking this approach. opportunity to develop creative solu- days onsite. Waldron points out that E t As Chris Waldron, field engineer tions: “We are making these head- you need to consider what it costs c and project engineer for Boldt on this walls ahead of time, and we had to “to have a crane on site, what it costs project explains, this allowed them figure out a way to get them on to the for all the overhead to be on the job- to explore options that they had not site [without damaging them.] So we site. If you are saving that time, you aseProje done on other projects, and it had an thought about a way that accounted are saving money because every day re

c impact on their selection of the proj- for corridor width and above-ceiling you are on the jobsite, you are n I ect team. Waldron states: “[Their pre- clearances. As a group, we came up charging money.”

to fabrication capacity] was part of what with a sketch. We got buy-ins from Without those extensive efforts, es we evaluated [the trade contractors] everybody. Now we have this cart that take into account the specific c

ti on. Who’s pushing the envelope, in that we can put our headwalls on and logistical challenges and opportu- c addition to things like price. We took can pick up with a forklift or a crane. nities associated with that site, they

Pra tours of their shop to see how Lean We built one to see if it would work, would be making decisions on the ed their operations are, and their pro- and sure enough, it did.” Lichtig men- use of prefabrication based on other c duction facilities for doing this work tions that they are seeking oppor- projects, and that may not truly guar- an

dv also went into the evaluation.” Trade tunities to utilize this cart on other antee that they can save money and A firms were also asked whether any projects in Wisconsin. eliminate waste. n had space that they could dedicate Gaining buy-in from the foremen to additional prefabrication work was a key part of this process, and should opportunities arise “to take it was a critical part of their overall stats Project Facts it to the next level,” and the plumber process as well. They used the feed- orationand and Figures they selected offered that oppor- back from these workers to conduct ab Construction Manager ll tunity, one which they are already a complete value stream analysis of Boldt Construction taking advantage of. both the traditional stick built conditions and the use of prefabrica- Type of Project Tackling Logistical tion. The process is intensive and Hospital Patient Tower and Con- necting Building Challenges attempts to capture all elements, As with their other projects, inten- such as the time needed to pick up Construction Start Fall 2012 sive planning was critical. Waldron scrap cutoffs and to go up and down on:Leveraging Co describes how they conducted first- stairs. The results of that process for ti c run time studies for each of the pre- two prefabricated components are Savings from Active Coor- fabricated elements, but they also featured in the table on the right. dination of Prefabrication made sure to include all the logistics Getting worker feedback is a crit- According to Time Studies: of transportation as well, from how ical part of gaining their buy-in for Prefabricated Headwalls they get components on the truck to the process. As Waldron states, “We ■■ Total man hours reduced from

LeanConstru the bridges they need to clear. “We have these foreman in the room, and 24 to 7 per headwall tested the build, we tested the deliv- we need their buy-in because if we Prefabricated Bathrooms ery, and then we were able to either don’t have it, then they are not going ■■ Total onsite man hours confirm or adjust our anticipated pro- to do it anyway. “ reduced from 9.5 to 3, with an duction.” Included in those calcula- If the numbers from this initial pro- overall (offsite and onsite) man- tions is an anticipated performance cess seemed favorable, they then hour reduction of 1 hour per factor that comes from doing this conducted time studies by videotap- bathroom work repetitively, which shortens ing workers to confirm the findings of the schedule. their initial interviews.

McGraw Hill Construction 37 www.construction.com SmartMarket Report Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Sidebar: L and purposely made too heavy to be ricated components are built offsite projects. challenges that characterize building ect can avoid some of the dangerous site rather that at the jobsite, the proj- safety. egy delivers high performance on that a Lean prefabrication strat- ident at uncertainty is lowest. the “last responsible moment,” when dinated design decisions are made at the project, ensuring that well-coor- are involved from the beginning of trical, plumbing and fire protection) general contractor, mechanical, elec- A advantage is much more than speed. manufacturing centers. Here the fabrication plants or other high-end tals, data centers, semiconductor and quick projects, such as hospi- larly useful on complex, uncertain that Lean prefabrication is particu- Co G Approach Prefab Lean to a Benefits Tangible quality, prefabrication. in with duration safety, project and cost advantages significant demonstrating are practitioners lean Currently Lean Strategies for Employing Prefabrication increased dramatically in recent years. to the industry, their application hasand modular construction is not new use of prefabricated components single activities or phases. While thecost or accelerating the delivery of SmartMarket Report SmartMarket ll reg Howell, co-founder of the Lean V nstruction trades (such as design architect, ict or B S y b rather than reducing the total project performance, tion focuses on improving ean design and construc- S Lean and Prefabrication F out anv or uilding components off- hland example, when prefab- I ido, senior vice pres- nst

itute, points out I ndu stries, adds McG raw Hill Construction Hill raw cation. is central to high-performance fabri- Well-sequenced object-based design Prefabricators Working With are virtually eliminated. accidents, as well as back injuries, tion. and moved mechanically into posi- picked up manually, each unit is lifted D tor of Lean construction and Mike D in the design process. you must identify the elements early imize the benefits of prefabrication, tion may require. spatial requirements that prefabrica- ers need to allow for dimensional and clude prefabrication. focus, the design can sometimes pre- ments of these elements. Without this the design to conform to the require- about reduction in waste.” sizes that his firm’s approach is “all over a span of three months. nents field-installed by a dozen trades room bathroom contains 800 compo- explains that a typical hospital patient fabricates medical modules. He construction in a day. completed modules back into the site Lean production line and inserting by completing the work in an offsite, rem the start of the project. in design coordination discussions at if he is able to include all of the trades enn unn B L oves that complexity from the site O J is, vice president, both for Construction, note that to max- obs X C R ebe EO ite ladder and scaffolding cca Ch

B ris 38 ett G ler, national direc- iat I

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site is optimal? considerations. How close to the job- the jobsite are increasingly important tics of transporting components to cation and how to manage the logis- decision on where to locate prefabri- imizes safety hazards. as possible reduces waste and min- Handling components as few times Logistics Costing and Planning for the Welty/ Loughrin is always case by case. ing by decision-making process, Choos- across hundreds of miles. well as those who ship the modules just a few miles from the jobsite as ricated components in warehouses works with partners that have prefab- A cost if shipping less than 1,000 miles. accounts for less than 2% of his unit shop is set up onsite or very close by. out that ideally the prefabrication be closer to the project. justify setting up offsite plants just to costs are modest and do not typically A a major cost issue. in distance from his prefabrication site T T his ime kro ll N JE B A waste counts, but transportation L lab ick lowers the complexity of n Children’s Hospital project,

O delivery. D A X’s Loughrin, production manager unn ama and the jobsite is not dva

G ’s ntages, the decision for iatt B B ett old ina counters that the ler and t J T oin ran T t n sportation V hus D ent U enn sin the ure’s is point J g the ust - I n- Data:Challenges to Broader Lean Implementation Top Challenges Faced by Lean Practitioners in the Implementation of Lean Practices

a Nearly half of the Lean practitioners find that lack of Top Challenges Faced in the Implementation knowledge is one of the top three challenges they face as of a Lean Approach dat

y they implement Lean. As the Lean experts in the in-depth (According to Lean Practitioners) c interviews make clear, this problem can be found inter- Source: McGraw Hill Construction, 2013 en

ici nally and externally. It can extend from field personnel to Lack of Knowledge ff senior management internally, and it can involve other E firms that they need to work with externally. Because of 47% ct je the emphasis on intensive planning processes and the Lack of Sufcient Support Across way in which their work depends on interaction with the Project Team Pro other project partners, firms attempting to implement 43% se a Lean can be placed in the position of advocating for Lean, Perception That Lean Is Too Complex re which can have an impact on their own effectiveness. c 40% In

Four additional challenges selected by 39% to 43% o Employee Resistance t of practitioners as among the top three they face all es reflect that larger concern about lack of knowledge by 40% ic internal and external partners. Internally, the percep- Lack of Industry Support/ act tion that Lean is too complex is still a factor, along with Understanding of Lean Pr employee resistance. Many of the Lean experts in the 39% ed in-depth interviews cited employee resistance as a key c n factor, although most also acknowledged that employ- Perception That Lean Will a Take Up Too Much Time ees also grow very enthusiastic and engaged when they Adv experience the benefits offered by Lean (see page 41). 31% nd The experience with internal resistance is also the main Lack of Standards a differentiation between the responses of the challenges

on 19% by those who are just familiar with Lean versus the Lean ati practitioners (see page 40). Concerns About Protability or Through the Transition to Lean b Externally, they express concerns about their project 9%

lla partners and the lack of industry knowledge about lean,

Co similar to those that have not yet implemented Lean. It is Union Reluctance

notable that there is no statistically significant difference ng 5% i g between the percentages of general and trade contrac- a tors who find this to be a top challenge, even though er trade contractors in the in-depth interviews tend to focus Lev more on the impact of external partners on their effective 1_14_CH_E11ChallengesPract_#01.eps on: implementation of lean practices. cti One striking finding is the low percentage of firms ru that find profitability through the transition to Lean to be t a challenge. This suggests that firms do see results from the Lean practices they adopt even from the start, despite Cons

n the upfront investment of time and analysis most of these a

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McGraw Hill Construction 39 www.construction.com SmartMarket Report Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data lenges. transition to Lean are not considered among the top chal- Lean, the amount of time spent and the profitability of the too complex, among those who have actually initiated ning efforts at the start of a project. partners can undermine even the most ambitious plan- much higher because they understand that other project engaged in Lean. by working with project team members who are not Lean do not fully understand the challenges posed tices and can make informed decisions. biggest obstacles they face in implementing Lean prac- on Lean, so that firms understand thefull benefits and the is too complex (26%). the transition to Lean (28%) and the concern that Lean much time (33%), the concern about profitability during understanding of Lean. familiar with it both deal with lack of knowledge and that are currently not practicing Lean but that are deg T T firm and thechallenge associated with implementing it. concerns about the impact of Lean adoption on their in Challenges That Influence Non-Lean Practitioners Challenges to Broader Lean Implementation survey (see page 8). construction or any of the main practices measured in the over one third of them (37%) are not familiar with Lean respondents who are representative of the industry that do now (see page 25). to see the value in a Lean approach on projects as they spend as much time encouraging their project partners in the next five to 10 years, they will no longer need to experts from the in-depth interviews anticipates that T and education on Lean must be provided to the industry. that a general lack of knowledge is problematic. Lean is a highly important challenge, and 32% also find find that lack of industry support and understanding of likely to be less of a problem. practices take hold in the construction industry, this is SmartMarket Report SmartMarket op wo out of three of the challenges that carry a high hey On the other hand, those who have not implemented T T T ree of influence for the highestpercentage of firms issues include the concern that Lean will take up too he hes heir are also supported by the findings of the group of next most important obstacles are a series of T e findings demonstrate that more information his D also reinforces the call for more information ecision

Practitioners tend to rank this factor O A the

T bou he r than the notion that Lean is highest percentage (39%) I n f t A act, dop McG O one of the Lean f c raw Hill Construction Hill raw ting Lean Practices ourse, as Lean

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continued 16% 18% 18% N on- Practitioners Practitioners 25% 26% 28% 32% 33% 39% F amil iar With Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data hallenges to Broader Lean Implementation D

ata: I to grasp. tices can be difficult forbeginners obs suit, Lean and the tools used in its pur- B complex Too Obstacles and Challenges large. at industry the and partners project their firms, their in employees the including of Lean, understanding a full of knowledge lack about and concerns include Top obstacles the Pursuit of Lean ConstructionIn-Depth Practices Interview Findings: Challenges to tance. are bound to be met by some resis- ods into a well-established industry to infuse new means and meth- approach to tasks. and resistance to transform one’s tices, a lack of knowledge by users perceived complexity of Lean prac- and implementation, including the concerns around education, training general and trade contractors cite In L be off-putting,” said one contractor. People’s heads start spinning… jargon and tools and times you can get overloaded on mo plexity is th co ing cle. Lean concepts and providing proper spread out geographically, rolling out et ac

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Data:Technologies Used to Support Lean Use of an Enterprise Resource Planning System to Support Improved Efficiency

An Enterprise Resource Planning (ERP) software system Use of an ERP ta supports the internal business processes of a company (By Level of Lean Engagement) da

y by providing an integrated real-time view of its core busi- Source: McGraw Hill Construction, 2013 c n ness processes such as finance, procurement and human ie Implementing Key Lean Practices c

i resources. For firms seeking greater efficiency, anER P is Familiar With Lean Practices ff most effective when it links data from business functions E t with project data. This provides the type of data neces- Not Familiar With Lean Practices c sary to understand better the cost and time implications Use an ERP of different processes and allows firms to make improve- 51% ments based on data rather than on assumptions. 38% aseProje

re 11%

c Use of an ERP n I Thirty-four percent of contractors report using an ERP Do Not Use an ERP

to at their company to coordinate their project data with 28% es their business management data, whereas 51% of those c 63% ti who have implemented Lean practices are using an c 9% ERP. This is a significantly higher percentage than the

Pra 17% of those not practicing a Lean approach that report Not Sure ed using an ERP. As one of the Lean experts in the in-depth c 1% interviews who is currently in the process of imple- an 68%

dv menting an ERP system at his firm makes clear, use of 10% A an ERP will help him to analyze data that they currently gather but that they cannot currently query because they lie in different systems (see page 44). If the systems are effectively coordinated, use of an ERP can help avoid 2_4_ERP_B1UsebyLevelofLean_#01.eps manual use of spreadsheets to understand the implica- orationand tions of doing Lean. ab

ll Degree of Support for Efficiency Efforts Variation by size of Firm Provided by an ERP Firm size is directly correlated with use of an ERP. ■■$500 million or more annual revenue: 70% use an ERP Source: McGraw Hill Construction, 2013 ■■$100 million to less than $500 million annual revenue: 49% use an ERP Well Supported/Very Well Supported ■■$10 million to less than $100 million annual revenue: Supported 18% use an ERP Somewhat Supported/Poorly Supported on:Leveraging Co ti ■■Under $10 million in annual revenue: 6% use an ERP Not sure c This finding is consistent with otherS martMarket Reports that examine technology adoption, includ- 5% 7% ing the 2013 Information Mobility report and the 2012 Business Value of BIM in North America report, which

LeanConstru demonstrate that large firms typically lead the industry 23% in the use of new technologies. Large firms can dedicate 65% more resources to new technology adoption and can even have dedicated staff to manage their technology, a challenge for smaller firms. A significantly higher percentage of general contractors (39%) use an ERP compared with the percentage of specialty trade contractors (22%). It is likely that this

SmartMarket Report McGraw Hill Construction 42 2_3_ERP_B2Efficiency_#01.epswww.construction.com Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data

in the use they draw from it. adopts an through better access to data. represents a commitment to more effective coordination dination, and the investment by a firm into an of worker ergonomics/activities. with non- ■ ■ from that list: ment data are more likely to conduct the top two practices s practitioners alike. However, respondents with an efficiencypage was15, reported bythe Leanuse practitionersof several and non- practices to increase O Efficiency Increase to Adoption of the Practices and Use ERP supported/very well supported by their the percentage that consider their efficiencyefforts well ence between large and small firmswhen itcomes to f ERP use supports their efforts to improve efficiency. not surprising that 88% of the respondents find that their measuring the effectiveness of specific approaches,it is Given the importance of data in eliminating waste and Efficiency Supporting data on projects across all trades from their use of an tors may also benefit more in their role ofcoordinating the specialty trade contractors, although general contrac- ing firms included in thestudy are generally larger than finding is largely due to the fact that the generalcontract- Use of an Enterprise Resource Planning System to Support Improved TechnologiesEfficiency Used to Support Lean well supported. to improve efficiency. can allow them to take better advantage of opportunities investment in understanding their business coordination strate that, even among firms not formally pursuing Lean, significantly largerpercentage of O act, 65% find that theseefforts are well supported or very ■ ■ ystem that connects their project and business manage- Offsite Offsite Prefabrication Weekly or n n • Non-ERP Users: • 73% Non-ERP • ERP Users: 89% Users: • 58% Non-ERP • ERP Users: 94% A S e less frequently used practice is also in use for a u l l three of these activities place an emphasis on coor- rprisingly, there is not a similar statistical differ- E E R R D P P users: creation of efficiencies usingstudies a , then size appears to be far less of a factor ily Meetings With Workers T h ese findings demon- E McGraw R P users compared E R

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82% UE i co 89% n t 94% n d Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data D ata: S systems vary greatly among the Lean experts interviewed. interviewed. experts Lean among the greatly vary systems these in realized of data levels integration the and used systems of The types systems. disparate from sometimes data, specific project- and of business a variety integrate and help consolidate to systems employ ERP some companies strategies, lean of their part As Enterprise Resource Planning SystemsIn-Depth Interview Findings: Use of SmartMarket Report SmartMarket core of their systems. Meridian Prolog and agement software such as CMiC, construction-specific project man- data integration. highly varied levels of systems and t G Integration nies th bu functionality they need. solutions to gain the integration and this, users often develop custom r “single source of truth.” ha down to four days. A 46 days to get boots on the ground. ect in the system, “it was taking us that process. When setting up a proj- already seeing improvement during and the company reports that it is part of an effort to make it more Lean, reviewing its internal processes as im system. cesses did not match up well with the discovered that its own internal pro- three years ago, the company has that since implementing a system change,” the contractor said. ors pursuing Lean practices report efers to the company’s system as its ft eneral and specialty trade contrac- em T T ve plemented siness er a Lean workshop, we got that wo hr

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G S ER Cs om P. . e S S om G to Cs Cs ne e Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Sidebar:

T V Delivery Project Integrated players. stand-alone as some on projects and lifecycle, project the key early players in as recognized being are super-subs data, project critical and models of highly detailed producers As Rise of the Super-Sub is emerging. o neering and operations. construction with expertise in engi- “super-subs,” these firmscombine fabrication and modularization. construction and model-driven pre- aid in greater collaboration, virtual deeply leveraging advanced tools to on projects. “ rication and modularization solutions tors that can offer multi-trade prefab- increasingly looking for subcontrac- pa dent of Mortenson Construction. cal building systems, says cializing in mechanical and electri- we can bring to the table.” phases to maximize the value of what in the programming and schematic cal, says partners has become more criti- quality, the role of these major trade ery to improve cost, schedule and for more integrated project deliv- he says. “ matic phase and the rest after that,” the program phase, 75% during sche- the [project] cost is established during projects. “We recognize that 50% of teams, often getting involved early in is increasingly integrated in project f ictor A S rt rt of that approach, Mortenson is ou s some firms and owners push S thland anvido, senior vice president Super-Subs D tier of trade contractors tion technologies, a new in modeling and produc- hrough advancements S av o we need to be involved id Mortenson, presi- D I T nd ub he ustries, a firm spe- bed by some as suppliers and T he S ou y are thland A McGraw s of S subs and owners is also changing. “ than the industry average,” he says. performance is about 15 times better tion and modularization, our safety ity and we do significant prefabrica- contractors. “When we design a facil- tion techniques executed by trade of advanced modeling and produc- fabrication practices,” he says. which are suitable for their particular and go right to their working closely with my contractors, contractors’ detailers. passes that level of design on to the struction documents. and moving away from creating con- closely with trade firms on designs E G trade contractors and engineers. e I Players With Other Relationships Evolving or validate their business program. make the business case for a project firm is involved in helping owners next 5 to 10 years,” he says. “ business growth accelerates over the ing-based techniques will find their delivery and use new manufactur- subcontractors who adopt integrated ties limited.” who don’t will find their opportuni-

Hi ncreased collaboration is causing an volution in the relationship between T ng an er ll T S “ S hat

Co I he ald Hartford, principal of Hartford an vido notes that on about one third ou ineering, says he is working more ’l nstruction l do the design and engineering, ’s a huge differentiator.” relationship between these vido also recognizes the value thland

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ustries’ projects, the 45 BI

I M ns www.construction.com models, tead, he T ho se similar to a one-stop-shop solution for owners, bilities, they are able to offer more of that as super-subs expand their capa- these roles. tracted directly to assume tal needs, super-subs could be con- for years to address ongoing capi- retained by large institutional owners maintenance phase of the building. struction and into the operations and vide services to owners beyond con- since trade contractors can pro- ongoing relationship with owners, performing a vital function.” game,” he says. “ people that don’t have skin in the an additional tier of involvement by nario because you don’t need to have concept works quite well in that sce- architect involved. “ work without a general contractor or sub may be able to take on all of the haul a mechanical room, the super- a client wants to completely over- industrial market. J struction with D hub of the project lifecycle process. capabilities can become the central build and post-construction servicing Multi-trade contractors with design/ Construction Beyond us av Morris sees this as establishing an t as general contractors are often id Morris, director of virtual con-

E PC n -style -style delivery in the E mc E F or ve or T ryone there is G example, if he SmartMarket Report SmartMarket ro super-sub up, says Data: Expert Insights on Collaboration

In-Depth Interview Findings: Collaboration and Technology-Focused Data Integration As more firms aim to foster better collaboration among team members, integration of workflows and project-specific data is critical. Teams must a t find solutions to bring together disparate internal business functions a d

as well as the capabilities of a wide-variety of external team members. y c In some cases, this raises technological challenges, but often teams are n ie also faced with conflicting cultural issues or differing processes. c i ff E t c indings from in-depth inter- contractors, and the findings from coming years, especially among early views (IDIs) conducted the participants in the IDIs align with adopters in sectors such as health- with four general contrac- the broader industry. All four engage care. For at least some of the respon- tors that are committed to in design-build projects, and nearly dents, increasing owner interest is aseProje a collaborative approach on proj- all of their collaborative projects are critical to that growth. “IPD seems re F c ects demonstrate that there are a design-build. to be the desire of clients, but clients n I few elements that support collabora- One contractor notes that half of sometimes fall short of that,” said one to tion and impact its success beyond the firm’s current projects are design- contractor. es c the commitment of the partners and build, but he expects that 60% to ti Construction Manager At c their engagement with the process. 70% of future projects will use that Risk Delivery method and systems sup- method. In anticipation of this, the

Pra Construction manager at risk is not port collaborative efforts and must firm “reached out to a number of ed always one of the delivery methods c be taken into account to advance design firms that share similar com- most associated with a collaborative an an effective approach. However, pany cultures and values to forge

dv approach, but one respondent, who

A options for software and systems memorandums of understanding is heavily involved in construction- currently available limit the poten- for design-build projects. The agree- manager-at-risk projects, considers tial to have a truly positive impact ments lay out a framework for how them to be highly collaborative. on the collaborative process. [the contractor] and specific design firms will approach a design-build Design-Build-Operate orationand Collaborative Delivery project, spelling out basic protocols, Design-build-operate (DBO) , which ab Established and emerging delivery team roles and responsibilities.” is sometimes referred to as design- ll methods are forging partnerships build-maintain, is another emerging Integrated Project that foster collaboration, crafting collaborative concept. In the United Delivery contractual terms and establishing States, it has gained some traction In recent years, some owners have common standards and practices to on public-private partnership proj- pursued integrated project deliv- streamline workflow between team ects, such as toll roads, but its adop- ery (IPD) by using an integrated form members. All firms interviewed are tion is limited to date. of agreement to contractually align deeply engaged in collaborative proj- No firms interviewed are currently on:Leveraging Co team members in this approach. As ti ects, reporting that at least half of engaged in DBO contracts, but some c an emerging method, IPD has seen their projects use the collaborative are pursing projects and discussing limited use to date, but two of the delivery methods discussed below. this option with owners. advanced group of contractors inter- The industry is significantly One firm reports that while it does viewed have worked on IPD projects. expanding its view of collabora- not have any current design-build- The firms used contractual agree- tive delivery methods, exploring operate projects, the firm is in the

LeanConstru ments, such as an Integrated Form of new contractual schemes to better procurement and proposal phase on Agreement, to create the framework achieve project goals. future DBO projects. This firm expects of the collaborative delivery method. to become more involved in DBO Design-Build As an emerging delivery method, a projects in the next five years, partic- For decades, design-build has limited number of projects have been ularly on large infrastructure projects. gained acceptance and is now the contracted using this scheme, but IPD preferred delivery method for many is expected to gain momentum in the

SmartMarket Report McGraw Hill Construction 46 www.construction.com Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency data Data:

in the industry. enhanced methods of collaboration play the central role in promoting on a project, meaning that owners drive the choice of delivery method owners. DBO hinges on its acceptance by ery methods, the adoption rate of Just as with all collaborative deliv- and fabricators. serve the needs of both contractors tors produce detailed models that t A Detailers and Fabricators collaboration. find interoperable means of data fabricators—it is critical that users contractors, subcontractors and involve multiple team members— ponents will meet specifications. ing assurance that fabricated com- coordination process, while provid- source of data that is critical to the nection, contractors create a single and consistency of data. approach could improve efficiency projects, but a more collaborative ricators can work within silos on ion techniques are helping contrac- dvanced modeling and produc- • Given that there is limited • A

O s commissioned. commissioned. maintenance after a project is to clients to aid in and operations said their firms offeredservices building markets, three experts post-occupancy needs. post-occupancy B leveraging primarily data from adoption adoption of D do do it yet.” one has taken the leap of faith to some institutional clients, but “no Expert Insights on Collaboration I this collaborative process can B ne ne firmhas seen requestsabout M m O

Contractors note that clients during preconstruction from during preconstruction odels odels to help clients with D D et I n B ailers and fab- O forging this con- T

in the vertical he se se firmsare Owners Owners Mc Graw Hill Construction Hill Graw fa I on a client’s willingness to pay for it. of detailing on a project may depend cess: some firms note that the level can play a critical role in this pro- on on A the trades that are doing these tasks. involved in coordinating between formed work. More often, they are ing, unless it is on their own self-per- involved in fabrication and detail- interviewed may not be directly A ects. ects. fabricators and detailers on all proj- T F to detailing. specific deliverables relative ally require subcontractors to provide ing is not done. and the risk of field issues if model- the complexity of a project’s scope T willingness to pay for modeling. client requirements or the client’s and level of detail can be driven by sions regarding the scope of models all projects. tors and detailers on some, but not tors, 3 notes that, for some subcontrac- on subcontractors, one contractor can impose detailing requirements mary role is to coordinate the F R R for one or not.” model regardless of if we ask them where they will produce a fabrication their existing process “to the point nv wo or hi g s re ol es One contractor notes that deci- A general contractors, the firms b s decision could also be driven by eneral contractor may contractu- general contractors, their pri-

p contractors say they work with lt olve ri p quency of of quency es an es T ro hough owners and contractors D on wo continued cation an cation f abrication is integral to jects say they work with fabrica- si m d b

ities 47 t in in t U

d se

d www.construction.com et ailing ailing ■ ■ ■ ■ s I Use Software/Systems hinder the collaborative process. ware and systems can either help or projects, the functionality of the soft- working with outside partners on focusing on internal functions or in enabling collaboration. Whether contractual terms. and processes, and culture issues, conflicting workflows work with integrated data, including can influence the team’s ability to other non-technological factors interviewed has found a single firms. external data varies greatly among C ricators. communicate with detailers and fab- tional and emerging digital tools to Contractors use a mix of conven- tractors. detailing done by its various subcon- files. multi-party connections to data and still very common, most also pursue cation by telephone and email are constructability issues. ated model to check for collisions or and coordinating those in a feder- ing digital models from all parties real time. tems for multi-party data review in eral also used online meeting sys- or other file-sharing systems. need these tools to be: nication tools, contractors said they n a data-intensive environment, ■ ■ ■ ■ oftware oftware systems are a critical tool A A Customized and contextual Simple o I T When considering these commu- n ffordable ligned with the users’ workflows mm

he addition, contractors note that T integration of internal and To date, none of the firms hi un s could include A T hi lt ication hough direct communi- s could include gather- SmartMarket Report SmartMarket FT P sites S ev - Data: Expert Insights on Collaboration continued

solution that serves all needs. Some barriers may break down.” In light of used by various facets of

a create customized systems that this, the contractor said that culture the company. at cater to their internal needs. How- change is its main obstacle on the d

System Support for y ever, these firms can face challenges path to integration. c Internal Collaboration n when using these unique systems ■■Third-party software ie Internally, contractors generally sup- c

i while collaborating with other proj- Three use a variety of third-party port and connect the data from their ff ect team members. Some firms software solutions for their inter- E business functions at multiple levels. t use a suite of third-party software. nal and external needs. Some of this c ■■Business development and This approach may not meet all of a software may help enable collabo- finance: Supported at both the firm’s internal needs, but it increases ration, such as software that is part corporate and project levels by the chance that external team mem- of a suite of BIM software. By using all respondents. aseProje bers can share data seamlessly, third-party software, a firm may ■■Constructability, estimating, re particularly if they use the same soft- find interoperability issues when c human resources and safety: n I ware. Interoperable solutions for trying to share data between dis- Supported by most respondents at

to data exchange would significantly parate systems. However, the firm the corporate level. All but human es enhance a firm’s ability to collaborate c

ti internally and externally. c System types Used by “Change management is huge. How do you Pra Respondents

ed switch from one system to another? How c ■■Database system do you get your team up to speed on a an Two of the firms interviewed use

dv system that they don’t necessarily use?”

A database systems as the backbone of their data integration strategy. The main advantage of a database is having a centralized source of data. may improve its ability to share data resources are supported by all This reduces the risk of redundant or externally, if other players use the respondents at the project level. orationand unreliable data. same software. ■■Procurement: Only supported by ab Respondents did not cite specific half of respondents at the corpo-

ll Opportunities for disadvantages, but some note that rate level. Supported by all at the improvement this data may not be easily shared project level. Contractors say that their ability to with other project team members. share data could be improved by: When a business function is ■■Enterprise Resource ■■Reducing duplicate entries. supported at the project level, it is Planning system ■■Keeping information digital: One integrated at both the data and files One firm is in the process of imple- contractor states that all data levels. However at the corporate menting a new Enterprise Resource on:Leveraging Co should be “born digital and stay level, most of the data is integrated ti Planning (ERP) system across the c digital. We can be so much more at the file level only, demonstrat- company. This is being done in efficient when everybody shares ing the need for better systems for phases, so the system was not fully and accesses the same single sharing data internally. implemented at the time of this source of digital information interview. Currently, its operations Software/Systems Used stored in the cloud.” and accounting functions are con- to Enable Internal ■■

LeanConstru Standardizing data-sharing nected to the system. Based on Collaboration constructs: “There’s a lot of infor- cost concerns, other departments, The firms interviewed use a variety mation out there. The more including marketing and estimating, of systems, third-party software and consistent data you have, the more do not have access to the system custom solutions to enable file-shar- you’ll be able to share it,” one under the current deployment ing internally. The choice of which expert said. plan. However, in the future “those approach to take may be driven by ■■Integrating individual systems

SmartMarket Report McGraw Hill Construction 48 www.construction.com Data: Expert Insights on Collaboration continued

the types of data being shared such System Support for construction-specific purposes.

a as project management data or BIM External Collaboration Despite this, one said that it was at models. The type of project and the ■■Database system: Two firms use able to customize its services to d

y players involved may also affect in-house database systems as the better serve its needs. c n this decision. primary source for file-sharing • Advantages: Both internally and ie c

i While users were generally sat- externally. externally, one user notes that its ff isfied with their existing systems, • Advantages: When collaborating service was simple to use and E t suggested areas of improvement with other firms, respondents integrated well with apps on c included faster speeds, better reli- say their systems offer better the team’s mobile devices ability of service and improved ease reliability and tracking of how and desktops. of use. data is being used within • Concerns: Users note that the aseProje ■■Database system: Two firms use the team. capabilities of these services re in-house database systems as • Concerns: Contractors say the were limited. c n I the primary source for file-sharing primary obstacle faced when Software/Systems Use

to internally. collaborating with the team is for Project Work es • Advantages: When sharing getting all parties to use their c Project work requires both internal ti internally, respondents say software. “Change management c and external collaboration simul- that speed and reliability of is huge,” said one respondent. taneously. When applying data

Pra centralized data were the “How do you switch form one systems to project-related work, ed main advantages. system to another? How do you c contractors deploy a wide variety of • Concerns: Consistency in how get your team up to speed on a an strategies and tools.

dv employees interact with the system that they don’t necessarily

A Some use multiple software, each data is a primary concern. One use?” Contractual terms are focused on specific project-related notes that further functionality an important factor in driving functions. This approach works well may need to be developed this approach across multiple in silos, but does not in a collabora- in-house in the future. project members. tive environment. ■■Third-party software ■■Third-party software: Three use orationand Others have taken a more inte- Three use third-party software solu- third-party software solutions that ab grated approach, using either

ll tions that are part of their respective are part of their respective suite of custom or third-party solutions. suite of BIM software. BIM software. These work particularly well for • Advantages: When sharing • Advantages: When collaborating internal purposes, but may present internally, respondents say that with other firms, one respondent challenges when collaborating with the ability to interconnect data notes that its system is very secure other project partners. Custom data- from multiple offices was an and that it could set limitations bases appear to work best because advantage. One notes that the based on login information. they can be developed to the spe- on:Leveraging Co ability to save documents locally Another added “one-stop shop for ti cific needs of construction, but c for faster viewing was everybody.” industry tools with these functions also helpful. • Concerns: The main obstacle to would be beneficial for sharing • Concerns: Training and team using this approach for collaboration data externally. buy-in are the main obstacles is potential incompatibility of ■■Custom solutions: to using these systems internally. software or workflow among Two firms reported that they use

LeanConstru • Improvements: The main team members. custom-developed systems that improvements that users would ■■File-sharing services: Two use leverage centralized databases for like to see are faster speeds and third-party cloud-based services consistent exchange of data. Users more stable syncing between for file-sharing.T hese services report that these systems work well online cloud content and are available for general business for internal purposes and collabora- local syncing. use and were not developed for tion. Functions that work particularly

McGraw Hill Construction 49 www.construction.com SmartMarket Report Data: Expert Insights on Collaboration continued

well include: may or may not work seamlessly Conclusion a • Seamless sharing of with each partner’s t Collaboration is fostered at various a information across multiple existing systems. d

levels within a project team. y project-related functions within • Leveraging data from past c ■■The choice of delivery method n the firm. projects: When leveraging ie helps establish the framework for c

i • Ability to make their systems supplier data from past projects collaboration on projects. ff available to other project to new ones, the contractor E ■■Owners select the delivery t partners for data-sharing, takes a legacy approach, using c method and therefore set the tone including subcontractors, spreadsheets. “We tend to have for how collaborative a project fabricators, suppliers and others. the ‘good old boy’ group that team can be. Partners may need to implement works on our jobs. We see a lot of With a framework in place, aseProje these systems for the duration the same partners coming in with contractors drive collaboration re of the project. This could require us job to job,” the contractor said. c among its subcontractors. Subcon- n I training and may or may not work • Use of BIM data: The firm tractors then work with other trades,

to seamlessly with each partner’s works in BIM, but is not and they may collaborate with fabri- es existing systems. connecting its models to its c cators. A team’s ability to collaborate ti • Ability to link data from past procurement system. c can be affected at all of these levels, projects, such as supplier • Real-time project reports: The but respondents note that owners

Pra information, to new projects. contractor is unable to run real- hold the most influence in encour- ed “These histories are beneficial in time project reports across its c aging collaboration, particularly as making decisions for new projects portfolio of projects at this time. an there may be costs associated with

dv in bidding,” one contractor said. The ERP system is in the process

A enhanced collaboration. • Generation of real-time project of being implemented across the The tools used by different firms performance reports across a company, so this function is not on a project team also significantly portfolio of projects. available at this time. “The desire impact a team’s ability to collaborate • Ability to leverage data from the is there and a lot of people within a data-intensive environment. BIM model to assist in functions are talking about it,” the orationand Firms currently use varied and often such as estimating efforts contractor said. ab disparate means to produce and ■■ ll for procurement, extracting Third-party software exchange corporate or project data, quantities and verifying take-offs. One firm uses a mix of software, each and there is an ongoing need to ■■ERP: focused on different business func- improve this process. Some compa- One firm has adopted anER P tions, such as estimating, accounting, nies have addressed it by developing system that allows data-sharing scheduling and other project man- custom solutions that may improve across multiple project-related func- agement functions. The firm reports their own processes, but these sys- tions within the firm. that “in practice our processes and tems do not necessarily aid in collab- on:Leveraging Co • Ability to share data: The tools are not set up to seamlessly tie ti oration with other firms.n c contractor shares data with this information together. This is a big multiple project partners, hairy audacious goal for the industry including subs, fabricators, as a whole.” suppliers and others. “Everything • Use of BIM data: The contractor goes to everybody, and we hope uses BIM on its self-performed

LeanConstru people understand how to use work and is able to tie those the delete key when they get models to its procurement something they don’t need. systems, but he says this Try to make it as transparent as approach does not work as well as possible,” said the contractor. As they would like. with custom solutions, using this system may require training and

SmartMarket Report McGraw Hill Construction 50 www.construction.com Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Sidebar: T P est naturally ventilated office tower. expected to be Pl bank branches, and its developed a fleet of L P Forward Perspective Users’ the Bringing practices. and decisions effective environmentally for generating opportunities the greater the of a building, operation and construction design, the around processes the integrative endeavor. fundamentally, a holistic is, more The Sustainability Collaborating for Sustainability from across the building lifecycle. approach to sustainability. tives that can help shape the project’s workplace and additional perspec- staff, tion managers, building operations ing disciplines, but also construc- only the architectural and engineer- eco-charrette, which engages not per person. estimate based on square footage space, they may total less than an for me-space, we-space and flex- i the sum of the usual faceplates. pose fewer electrical demands than tops, for example, the workplace uses cell phones and lap- actually behave. align what gets built with how users P gets magnified,” says value chain, that any misalignment strategic advisor on the Pl

f a department tallies its real needs E N N aza’s sustainability design process. aza, now under construction, is T “ , C C T C he he kicks off each project with an F EO IT inancial information generated helps re are so many links in the p a Collaboration for Sustainability ersonnel, P to bring in perspectives project development team rations reach beyond the he most effective collabo- t Paladino and Company, S N er I or f vices everyone in a th N T EE A om C’ IT T T me G D ow s ow s head of ro Paladino, -c ystem will rica’s tall- er at P er at P up has ertified A N N nd C C McGraw Hill Construction Hill McGraw may look like extra costs, says energy than it used. it actually began producing more not only achieved net-zero energy, adjustments were made, the building doors in cold weather. cance of propping open classroom needing to understand the signifi- fine-tuning and maintenance staff equipment and controls needing a post-occupancy review, he found ning, L on investment. the future and brings a better return benchmarks for owners’ reference in sustainability objectives, establishes confirms achievement of a project’s first year of buildingperformance, design intents, at least through the but having the design team track at net zero. When energy facility, did not at first operate B Middle be addressed.” building has issues that need to I T development team’s role complete. p B Completion Beyond Intents Design Tracking “ ing to b cesses are what’s getting them there.” nt F eyond L letion, the owner may consider the hat ui y the time a building reaches com- or project teams wanting to push Monitoring and commissioning F erface erface lding, an or could be a mistake. example, the Hood A EE S nd ch EE D E y ng -P ool D F AI latinum, net-zero- ri , ineering, “

highly integrated pro- A chtl, P S

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principal with A A nc www.construction.com www.construction.com wa A lm R cc e those iv rd-win- ost every order F ri chtl, may already be committed. to 70 percent of its life-cycle costs project’s upfront costs are spent, up a 1994 analysis by in the project’s design. expense, are determined very early to three times a project’s initial costs, which can typically amount O Collaboration for Hardwired FA ration. With the contractor and and hardwires a project for collabo- single, often decades-long contract, between project development and ery breaks down the distinction tain ( O sustainable solutions. thinking that generates more process, and forward in the decision-making cial implications brought together and with environmental and finan- about process. sylvania A D doesn’t matter all that much,” says commitment.“ tion. achieving similar levels of integra- design-bid-build, are capable of ery methods, including traditional laboration, but other project deliv- s exchanges at the right time.” the right talent [who are] having taff taff contributing from the start, av r &M perations and maintenance ( T DB chitectural AS he id

DB T O phases, bringing them under a , design-build-operate-main- he R when just one percent of a M il O S y just require a more explicit ey, associate professor of DB may be hardwired for col- M) tat O method of project deliv- e E M U T ng I t’ he ni builds in the holistic s about having ineering at Penn- versity, “it’s really J type of contract

SmartMarket eph A cc R ording to om n O O m,

&M Re &M &M port ) Photograph courtesy of Mortenson Construction Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency case study F pital project in and trucked and to trucked the delivery. site for just-in-time Crews built 166racks that are multi-trade built in a warehouse icant part of this strategy,” says traditional schedule. months ahead of an estimated sq-ft facility in 30 months—five Construction, to deliver the 831,000- enable the team, led by Mortenson to shave schedule. prefabrication and modularization strategy that leverages multi-trade team devised a highly collaborative T be on an extremely fast-track path. G Mortenson. “ elements to keep everything moving fast-track both interior and exterior meet the schedule restrictions.” SmartMarket Report SmartMarket o reg “Prefabrication had to be a signif- G meet the challenge, the project reg or, construction executive for or says the team needed to J the new state-imposed deadline, aced with a daunting os eph replacement hos- I t D was the only way to

en E xe ver needed to T he mpla plan would Collaborating on Prefabrication S Exempla Saint Joseph Replacement Hospital Replacement Joseph Saint Exempla ai nt B il l Mc to Improve Schedule Graw Hill Construction Hill Graw ahead quickly. cated interior elements. the team maintain pace with prefabri- enclose the facility quickly and help ing the exterior panels, crews could pods and headwalls. multi-trade corridor racks, bathroom prefabrication—exterior wall panels, efforts on four main elements for the process. mented. ect delivery concepts were imple- contracting methods, integrated proj- ex includes incentives, as well as a to a collaboration agreement, which A part, by the contractual framework. minimize redrawing. the schematic phase—or earlier—to and contractors worked together in ac lt T Collaboration proved critical. celerate the schedule, designers ecution plan to map out hough the project uses traditional hat process was enabled, in Denver, Colora Denver, S ta keholders committed

he 52 team focused its

B y accelerat- www.construction.com d o T BI o M design] model,” team as an element to insert into [the and transmitted it back to the design turer drew it, designed it in the model to the manufacturer. “ schematic level and then handed off to establish 15 standardized pods. but the team was able to rework it ferent bathroom configurations, create 440 of them as modular pods. 640 bathrooms, the team decided to T T within five miles of the project site. sure 30 ft. by 15 ft.—at a warehouse exterior panels—most of which mea- in their drawings.” panels] so they could create modules knowing how we would fabricate [the the truck, lifted and installed. “ in per truck for just-in-time delivery. cess. “[ informed by the prefabrication pro- ing the design team’s work to be design development process, allow- tractors were brought in during the says a joint venture of two local con- G E F ou F Modularization and Prefabrication O Prefabrication Multi-Trade could accomplish.” through all of the ideas of what we a lot of the players involved to work were brainstorming sessions with charrettes,” iv or the enclosure system, ac he he reg ne of the more unique aspects of T Contractors prefabricated 346 “ r best day, we placed 26 panels,” e to six panels could be brought o E h panel was picked directly from custom pods were designed to a original design included 75 dif- ar or adds. help expedite the hospital’s ly on we had prefabrication T he design team] drew it G reg G or says. “ reg or adds.” T he manufac- G T reg he O re or n c ontinued Exempla Saint Joseph Replacement Hospital Denver, Colorado

ontinued case studyc

y the team’s overall approach is the use for crews from its models. benefits to the schedule.U .S. Engi- c n of multi-trade corridor racks. Only a The team also created a production neering and Encore Electric part- ie c i few hospital projects had used this schedule that allowed for a steady nered on multi-trade rack corridors ff technique prior to the Saint Joseph’s flow of racks.S trait says crews cre- for another project in Denver that E t job, but Gregor says Mortenson saw ated the racks slightly ahead of con- completed this year, and they were c significant potential given that sched- struction, storing up to two weeks of able to build upon their collabora- ule was a primary driver. The 166 cor- racks in the warehouse. By using this tion in this project and work together ridor racks, which measure roughly method, Strait says contractors could effectively. He says that the team was aseProje 25 ft. long, were constructed in a maintain steady manpower needs, able to install corridors on that proj- re

c rented warehouse close to the site. avoiding peaks and valleys. By allow- ect in one third of the time it would n I Although each rack contained unique ing some limited storage, the team take for a traditional job.

to elements, the team worked to could accommodate for fluctuations “It’s a great concept,” he says. es standardize and streamline the in field installation. “The collaboration is a benefit in c

ti design as much as possible to Once shipped to the field, crews itself. It brings the team closer from c improve efficiency. could install up to five units per day, both a cost and construction stand-

Pra Mechanical and plumbing contrac- creating roughly 125 feet of point. You get just as good quality, if ed tor U.S. Engineering took the lead, corridor space. not better, and it’s leaner construc- c first building the steel structure, then For the final piece of Mortenson’s tion in terms of workflow.”n an

dv adding ductwork, piping and related strategy, the team is creating 376 A elements. The racks were on wheels, multi-trade headwalls, which include stats enabling crews to move them from piping for medical gases, electrical, Project Facts station-to-station within the ware- framing, drywall and finishes.” and Figures house. After U.S. Engineering’s work General Contactor was done, the rack was moved over Benefits orationand Mortenson Construction to the electrical crews from Encore The project, which topped out in ab Type of Project ll Electric to add their work. From there, April 2013 and is scheduled to be Hospital insulation, drywall and framing were completed in late 2014, is ongo- Size also added. ing and Mortenson does not have 831,000 sq. ft. Dan Strait, vice president of proj- final metrics in place, but clear ben- ect development at U.S. Engineering, efits are emerging.A s of October Demolition December 2011 says that compared with traditional 2013, the project was a month ahead methods, the multi-trade racks of schedule, five months ahead of Completed June 2014 on:Leveraging Co required significantly higher levels of a traditional schedule. Gregor also ti c collaboration and coordination, par- notes that, with so much prefabri- ticularly in terms of logistics and con- cation being done in warehouses at Collaborative Goals structability. “How do you, from a ground level, the work is exposed to Reduce construction schedule constructability standpoint, connect much less risk. There were no record- by at least five months using a rack to the lower wall sections?” able incidents on the prefabricated collaborative techniques.

LeanConstru Strait says. “From a logistics stand- work, as of October 2013. Gregor Prefabricated/modular ele- point, how does that workflow go? notes that in some ways elements, ments include: Is it a benefit or not?T here are a lot such as the multi-trade racks can cost

more conversations like that.” more in terms of direct costs, but that ■■ 166 Multi-Trade Racks Strait said the trades created digi- it is made up in other ways, such as ■■ 376 Headwalls tal models for coordination and fab- reduced overall schedule. “We’ve rication. U.S. Engineering could also been able to identify that it is cost- ■■ 440 Bathroom Pods generate a bill of materials for each neutral,” he says. ■■ 346 Exterior Panels rack as well as a set of instructions Strait says he also sees significant

McGraw Hill Construction 53 www.construction.com SmartMarket Report Sidebar: MHC Research Supporting Lean

Other Research Studies Support Lean Conclusions

From renewed and more intensive use of long-standing practices, such as y c prefabrication and modularization, to the leveraging of new technologies, en i such as building information modeling (BIM), the construction industry is c actively seeking ways to conduct work more efficiently and profitably. effei t c

oje iven the fact that over one The Importance of important benefits of improved infor- r p third of the industry is not Collaboration mation mobility due to mobile tools familiar with Lean con- A s the Lean experts in the in-depth and technology advances. In fact, ease

r struction or specificL ean interviews reveal, collaboration is improved collaboration among team c

n practices (see page 10), it is clear that at the heart of a Lean approach to members is the most widely recog-

I G more information on the need for and increase efficiencies. Core practices nized benefit of improved informa- s tos benefits ofL ean is important to help like Last Planner System depend on tion mobility by contractors, ranking e c i improve the construction industry collaboration among project team even a little higher than improved t c process. However, Lean is not an iso- partners to be effective. Among the productivity, with 81% of general lated approach; it is the cornerstone series of construction-industry spe- contractors and 70% of specialty d Prad

e in efforts to improve competitive- cificL ean practices measured, two trade contractors perceiving it as an c ness, profitability and productivity in collaborative approaches—target important benefit. The study also the construction industry. value design and multi-party con- reveals that the ability to share data In research since 2007, McGraw tracts—are the most widely known with project team members is among Hill Construction (MHC) has dem- and adopted (see page 13). the most important functions of onstrated the impact that individual This study also demonstrates the mobile technologies and a key practices and tools critical to taking challenges experienced by Lean driver for firms to increase their infor- a Lean approach—such as the use of practitioners in their ability to share mation mobility. BIM, improved information mobil- data with project team members. This finding has strong impli- ity, the use of prefabrication and the A recent MHC study on informa- cations for firms taking aL ean application of risk mitigation strate- tion mobility1 reveals that contrac- approach. Since many Lean prac- gies—have had on productivity and tors find collaboration with owners tices, such as the Last Planner profitability in the industry.T he find- and design firms to be increas- System, depend on the full cooper- ings from these other research stud- ingly important. Contractors in ation of all project team members, ies shed additional light on the value that study consider supporting col- greater industry attention to and pri- leveragingCollaboration and advan of adopting a Lean approach. laboration to be among the most oritization of collaboration supports

Level of Decrease in Project Total Impact of 40% Prefabrication/Modularization Schedule Due to Prefabrication/ on Project Schedule Modularization 35% Source: Prefabrication and Modularization SmartMarket Report, McGraw-Hill Construction, 2011 30%

Decreased 6% 66%: Schedule Decreased By No Change 20%

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SmartMarket Report McGraw Hill Construction 54 www.construction.com leveraging Collaboration and advanced Practices to Increase project effeiciency Sidebar:

risk ercent Eighty Modularization and Prefabrication of Benefits interest in increase industry awareness and experience because of exposure to the benefitscompanies projects using a tion, as firms workcollaboratively on extensive the potential for better and more 77% tance on improving collaboration. the industry places greater impor- t s tion i interviews. L project, especially according to the is greater reliability of results from a benefits oftaking a t fabrication greater reliability. is one critical element of that used by applied in the industry and not solely cation and modularization are widely fits they experience. While prefabri- in their ability to achieve the bene- (see page 17) and an important factor a central part of their prefabrication and modularization is tors, also reveal that judicious use of especially the specialty trade contrac- experts in the in-depth interviews, on more sophisticated and complex allows improve construction efficiencies time spent in the planning stages to on scheduling and the additional ntegrated 2011. 4. 1. hat heir tudy e Information Mobility SmartMarket Report SmartMarket Mobility Information an experts in the in-depth A 2

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Prefabrication and Modularization SmartMarket Report SmartMarket Modularization and Prefabrication B fabrication. the efficiency of the process of pre- collaborative efforts and to improve tool used by the industry to support B experience yields better results. repeat business, demonstrating that its and improved ability to maintain ing increase in the percentage of tion of findings in this report that adop- ing non-practitioners to consider adopt- productivity are important drivers for because increased profitability and ity. achieve key benefits like profitabil- impact the number of firms able to increased experience may also tomer satisfaction. be competitive and to increase cus- Staff RecruitmentandRetention Reduced CycleTime ofSpecicWorkows Offer NewServices Reduced Rework Market NewBusiness Reduced DocumentErrorsandOmissions 2012 Construction, McGraw-Hill Source: Short-Term and2012) BIMBene ts(2009 McGraw Hill Hill McGraw I I M M 2009 2012 T T h L The Business Value of BIM in North America SmartMarket Report SmartMarket America North in BIM of Value Business The in users that report increased prof-

h e is findingcorresponds to the an. C is is particularly important o L N nstruction, 2012. nstruction, e o n an promotes the ability to rth rth A A n 21% MHC 2012 study of m 23% erica I t is likely that 31% 5 SmartMarket Report SmartMarket found a strik- , McGraw Hill Hill , McGraw 39% C o 45% nstruction nstruction 46% 47% 47% 48% 49% 51% 52% , Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency Methodology: today and will be in the future. it is adopting Lean/efficient practices construction and the degree to which explore how the industry views Lean contractors from selected trades to g was conducted online among for contractors. enhanced collaboration Lean and the other examining data- interviews—one also focusing on and two sets of qualitative in-depth study on Lean conducted online, the resultse ofresearch ain quantitativethis report research includes T Lean and Data-Enhanced Collaboration Research of accuracy: 95% Confidence of 193 benchmarks at a high degree ber 6–19, 2013. D Mc including 120 respondents from the dents completed the online survey e 2013 Lean Construction T Research Lean Quantitative Construction Panel and 73 respondents from Lean electrical work and 25% do H cal and electrical work, 50% do just A with a margin of error of +/-7.1%. of specialty trade contractors: contractors and the following types SmartMarket Report SmartMarket eneral contractors and specialty h h at m • Vertical transportation • Vertical transportation • and Thermal moisture control • Steel erection and fabrication • Roofing • Masonry • HVAC, plumbing, mechanical, • Glazing/panels • Electrical • Curtainwall • Concrete A T G a were collected from ong trade firms doing mechani- h

sheet sheet metal/ducting total of 193 qualified respon- r e survey was open to all general aw Hill Construction Contractor I n T stitute members.

h e total sample size S e ptem- S VA I t n U udy terval C . S , . M cGraw Hill Construction Hill cGraw T groups were derived for analysis: B of or experience with Lean. tions appropriate to their knowledge respondents to specific sets of ques- Lean practices: implementation of the following six asking about their familiarity with or ment with Lean was determined by mechanical work. metal. mechanical, plumbing and sheet sured by their revenues in 2012: the respondents by size when mea- h a 1) Lean Practitioner: 3) Not Familiar with Lean: Lean, 29% of the total. respondents were familiar with implemented any. the six practices but have not yet were familiar with at least one of 2) Familiar with Lean: were practitioners, 49% of the total. tices. implemented any of these six prac- with Lean, 22% of the total. tices. not familiar with any of the six prac- • Prefer not to say: 5% • Less than $10 million: 26% • $10 million to less than million: $50 • Toyota Way or other Lean • Six Sigma • Pull Planning • Lean Construction • Last Planner System • Just-In-Time • $50 • million $50 to less than $250 • million $250 or more: 30% T T sed on the responses, three ese definitions were used to direct h h 18% Manufacturing Approaches Approaches Manufacturing million: 21% e following is the distribution of e respondents’ level of engage- O F N n o i ly 3% do electrical and nety-four respondents rty-two rty-two were not familiar

56 F

i fty-seven fty-seven T h T www.construction.com ose who h ose who T h ose ery ery methods on their projects. engaged in using collaborative deliv- general contractors that are actively conducted by telephone with four tion study, in-depth interviews were $7 billion, with most under $1 billion. revenues ranged from $450 million to T lion, with most in excess of $2 billion. ranged from $150 million to $9 bil- tractors’ annual revenues in 2012 were interviewed. tractors and four trade contractors practitioners from six general con- data-enhanced collaboration. tice of Lean and the other to examine ducted, one for insights in the prac- o telephonesets ofand in-depthin interviewsperson by were con- T Interviews In-Depth Qualitative were all M Source: McGraw Hill Construction, 2013 Construction, Hill McGraw Source: Respondents 3_2_Meth_TypeofFirm_#01.eps most in excess of $2 billion. from $150 million to $4 billion, with projects. approach on at least 50% of their firm reported using acollaborative w h F F e trade contractors interviewed o o r the data-enhanced collabora- r the Lean study, expert Lean Specialty Trade Contractor General Contractor 30% T E h P eir 2012 revenues ranged firms, and their 2012

b T y h 70%

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n T ype E a ch ch SmartMarket Report Resources Organizations and websites that can help you get smarter about the use of Lean practices

Acknowledgements:

The authors wish to thank our premier sponsor Dassault Systemes for helping us bring this information to the market. Specifically, we would like to thank Marty Doscher, Patrick Mays and Akio Moriwaki. McGraw Hill Construction Main Website: construction.com We would also like to thank the Lean Construction Institute for participation in Dodge: construction.com/dodge the research process, in particular Dan Heinemeier. Additionally, we appre- Research & Analytics: ciate contributions from those that provided their perspectives and options. construction.com/dodge/ Most notably, thanks to those that generously shared their time and insights for dodge-market-research the in-depth interviews. We also want to thank all the companies that partici- Architectural Record: archrecord.com pated in the case studies. Engineering News-Record: enr.com Sweets: sweets.com SmartMarket Reports: construction.com/market_research

Dassault SystèmFT www.3ds.com

Premier Partner L ean Construction Forum on Linked In: linkedin.com/ Dassault Systèmes: 3ds.com groups/Lean-Construction-Network-2622826 Research Partner Loughborough University (UK): construct-lean.org/index.php Lean Construction Institute: leanconstruction.org Michigan State University: leanconstruction.msu.edu Other Resources National Electrical Contractors American Society of Civil Engineers: asce.org Association: necanet.org ProducedAssociated with Builders support from & Contractors: abc.org National Institute of Building Sciences: nibs.org Associated General Contractors of America Lean National Institute of Standards and Technology: Construction Forum: agcleanforum.org nist.gov/lean-manfacturing-portal.cfm BIMForum: bimforum.org Sheet Metal & Air Conditioning Contractors’ BuildingSMART Alliance: buildingsmart.org National Association: smacna.org Construction Industry Research and University of California Berkley: ce.berkeley.edu/ Information Association (CIRIA): ciria.org ~tommelein/lean.htm Construction Users Roundtable: curt.org University of Salford (UK): www.chairegp.uqam.ca/ Design-Build Institute of America: dbia.org upload/files/conference-invitation/ Intergraph: intergraph.com/assets/pdf/ lean-construction-industry.pdf LeanConstructionWhitePaper.pdf Karlsruhe Institute of Technology (Germany): tmb.kit.edu/english/1561.php ■ Design and Construction Intelligence SmartMarket Report www.construction.com

McGraw Hill Construction SmartMarket Reports™ Get smart about the latest industry trends. For more information on these reports and others, visit www.construction.com ⁄market_research

SmartMarket Report SmartMarket Report ■ Design and Construction Intelligence SmartMarket Report www.construction.com

McGraw Hill Construction SmartMarket Reports™ Get smart about the latest industry trends. For more information on these reports and others, visit www.construction.com ⁄market_research

The Business Value of BIM in North America Multi-Year Trend Analysis and User Ratings (2007–2012)

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