The Principles and Applications of Lean Construction in Singapore
The Principles and Applications of Lean Construction in Singapore
net/publication/228797242
CITATIONS READS
32 3,736
2 authors, including:
Mohammed Dulaimi
50 PUBLICATIONS 1,668 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Mohammed Dulaimi on 12 March 2015.
ABSTRACT
Lean construction is a new way to design and build capital facilities. It advocates the
simultaneous consideration of product and process development using simultaneous
engineering. This philosophy has challenged the belief that there is always a trade off
between cost, time and quality. This study examines the pre-requisites and barriers for the
possible implementation of lean construction in the local industry. Interviews are done with
the managing directors and construction managers from selected Singapore ISO 9000
certified construction firms. From the research findings, it is found that only certain features
of lean construction have been implemented locally. The biggest barrier is the cultural
resistance to change.
INTRODUCTION
The chronic problems of construction are well known: low productivity, insufficient quality,
poor co-ordination, high costs etc. (Eaton, 1994). A number of solutions have been proposed
to address parts of these problems. However, these tend to be versions of procedures adopted
by the manufacturing sector and modified to suit the conditions of the construction industry
(Koskela, 1992a). For example, Quality Assurance (QA) has been advocated as a remedy for
poor quality (BSI, 1987). Further suggestions included a computerised integration of design
and procurement as a remedy for low productivity (Betts, et al., 1994) and electronic data
interchange for poor co-ordination (Dym & Levitt, 1991).
The Construction 21 (C21) report (1999) reviewed the state of the construction
industry and Singapore and criticised its performance. One of the reports recommendations
to improve the efficiency of the construction industry is for the industry to adopt lean
construction (LC) as one of the emerging global trends and recommends its implementation
to ensure the competitiveness and relevance of the Singapore construction industry
Presently, Lean Production (LP), which stresses on the important theories and principles
related to production processes, is being developed and implemented in manufacturing
(Shingo, 1992; Schonberger, 1990; Plossl, 1991) to rectify the present situation.
Koskela (1993) reviewed the concepts, principles and methods of LP and analysed their
applicability in construction. He also found that 6 to 10% of the total project costs in Sweden
1
Assistant Professor, Department of Building, School of Design and Environment, 4 Architecture Drive,
National University of Singapore, tel: 0065-8746501, fax: 0065-7755502, [email protected].
2
Building Batchelor Student, Department of Building, School of Design and Environment, 4 Architecture
Drive, National University of Singapore.
1
and the USA to be waste. Melles (1994) found the instruments of LP to be in existence in
construction; however, it enforces a real change in attitude to utilise them in order to be lean.
Koskela, (1992b) criticised conventional construction for being pre-occupied with
managing only tasks and flows are neglected. This is seen the main reason that construction
is characterised by a high share of non value-adding activities. One case study taken in USA
in 1998 shows remarkable benefits of implementing LC (Garnett, et al., 1998):
• Office construction times reduces by 25% within 18 months
• Schematic design reduces from 11 weeks to 2 weeks
• Turnover increases of 15-20% (Pacific Contracting)
• Satisfied clients looking to place repeat orders
• Reduction of project costs
Lean Production (LP) was developed by Toyota production system in the 1950s led by
Engineer Ohno who was committed to eliminating waste (Howell, 1999). The term "lean"
was coined by the research team working on international auto production to contrast it with
craft and mass forms of production (Womack, et al., 1991).
The core concept behind LP is to enable the flow of value creating work steps while
eliminating non-value steps i.e. waste by focusing on fast cycle times. When waste is
removed from the production process, cycle times drop until physical limits are reached.
Value-adding activities are however, first improved through internal continuous
improvement and fine-tuning of existing machinery. Only after these improvement potentials
are realised, major involvements in new technology are considered. The primary goal of LP
in Japanese is Muda, that is, to avoid waste of time, money, equipment etc (Shingo, 1992).
Lean construction (LC) accepts Ohno's production system design criteria as a standard of
perfection (Howell, 1999). Waste is defined by the performance criteria for the production
system. Failure to meet client’s unique requirements is waste. The evidence of waste in
Ohno's terms is overwhelming (Koskela 1992a). Waste in construction and manufacturing
arises from the same activity-centred thinking. Howell (1999) argues that there is a need to
maintain pressure on every activity to ensure continuous improvement through the reduction
of cost and duration of each activity.
Lean theory, principles and techniques, taken together, provide the foundation for a
new form of project management. From roots in production management, LC has produced
significant improvements particularly on complex, uncertain, and quick projects. LC is a new
way to design and build capital facilities. The objective of LC is to better meet client’s
demands and dramatically improves the Architectural/Engineering/Construction (AEC)
process as well as product. LC advocates the simultaneous consideration of product and
process development.
Managing construction under lean is different from typical contemporary practice
(Howell, 1999) because it:
• Has a clear set of objectives for the delivery process
• Is aimed at maximising the performance for the customer at the project level
2
• Designs concurrently product and process
• Applies production control throughout the life of the project
Womack and Jones (1996) describe the business environment within which they see lean
techniques being successful. Five key principles emerge:
Specify Value
Value is defined by the ultimate customer’s needs through tools such as value management,
quality function deployment and simulation. These will define attributes which are
characteristics that deliver client’s satisfaction (Garnett, et al., 1998) and are created by the
MCs. Construction needs to adopt product focus that enables a long-term dialogue to be
started concerning the nature of value and how the product delivers it. The client requires a
building to suit his purpose and provides value for money. The vision that this product and
customer focus suggests is not new. Aspects of it have been alluded to it in many previous
reports (Atkin and Pothecary, 1994; Bennett, et al., 1988, 1989, 1996, 1998; Gray, 1996) but
the ideas have not been developed by the industry. In construction, specifying value comes
before design (Ballard and Howell, 1998).
3
Flows
Flows are characterised by time, cost and value. Resources (labour, material and construction
equipment) and information flows are the basic units of analysis in LC. There are
controllable and uncontrollable flows. Controllable flows such as materials or instructions
from the warehouse or management respectively. Uncontrollable flows such as suppliers’
provisions of resources and design information.
Strategically, flow is concerned with achieving a holistic route through the means by
which a product is developed. It attacks the fragmentation that is inherent in the industry
today by revealing it to be highly wasteful. Many have recognised this wastefulness (Latham,
1994) and the leading solution is seen to be partnering. Bennett (1998) points out that early
stages of partnering are necessary pre-requisites for improving construction. However,
partnering remains only a partial solution.
Lean works to eliminate places where value-adding work on material or information
is interrupted. In construction, this may mean repackaging work so that parts of the project
can proceed without completion of others and/or assure that resources are delivered in the
order required and transported directly to the installation location (Howell and Ballard, 1998)
to prevent double handling.
Construction problems are caused by negligence of flows. The construction process is
seen as a set of activities, each is controlled and improved as such. Conventional managerial
methods like Critical Path Method (CPM) deteriorate flows by violating principle of flow
process, design and improvement. They concentrate on conversion activities. The resultant
problem in construction tends to compound and self perpetuate.
Under lean thinking, improvement is possible by reducing uncertainties in workflow.
Redesigning the planning system at the assignment level is the key to assuring reliable
workflow and this step has to be implemented early.
Pull
At a strategic level, pull identifies the real need to deliver the product to the customer as soon
as he needs it. The traditional construction process pushes the client into an often-protracted
development process where risk and uncertainties are prevalent. The principle of pull
suggests a decision where the ability to define quickly what the client needs from a building
in relation to his business and subsequently customising and deliver them more predictably
when the client requires them.
Three types of inventories need to be minimised:
• Material and design.
• Labour and its tools.
• Intermediate work product that has not been exploited.
Perfection
This is a key strategic level because what it defines is the need for this way of working and
organising construction products to become a way of life with an inherent culture. To achieve
perfection means constantly considering what is being done; how it is being done and
harnessing the expertise and knowledge of all those involved in the processes to improve and
4
change it. With continuous improvement (Japanese: Kaizen) done and with waste eliminated
along the flow process, perfection is the ultimate sweet reward that companies can achieve.
In essence, LC is a project delivery system founded on the reliability and speedy delivery of
value. Tools and techniques such as kaizen, simultaneous engineering and strategic alliances
with the suppliers are in essence the result of applying these five main principles to what is
already being done at a tactical level. The essential elements of LC can be examined
separately but the benefits can only be achieved by the holistic approach of all the elements.
The challenge that Kaizen is originated and employed solely for use in the Japanese culture
(Green, 1999) is taken up when the Western version of Kaizen is developed. This modified
version is part of Total Quality Management (TQM) based on certification according to
International Organisation for Standardisation (ISO) 9000. TQM includes Quality Assurance
(QA) and Quality Management (QM), which coincide with ISO roles.
The research has examined the relevance and compatibility of ISO 9000 core and supportive
processes (figure 1) to lean construction.
5
CORE PROCESSES
1. Design Control
Companies need to have design verification and validation procedures with adequate controls
to assure an acceptable design (Peach, 1997) and ensure the client’s requirements are
confirmed thus reducing the incidents of rework. The principle of value specification through
the instrument of customer orientation coincides with this clause. This is particularly crucial
for contractors undertaking D&B projects where they are expected to design most parts of the
building. Internal reviews are to be carried out at different stages of the design process since
the estimated cost of executing a change due to design error is five times more at the site than
at the drawing board (Lam, et al., 1994).
2. Purchasing
Under this clause, the performance of the SCs and the suppliers are assessed, recorded and
reviewed on an annual basis (Lam, et al., 1994; Yeoh & Lee, 1996) thus selection can be
based on these assessments. LC’s principle of making the value flow (section 2.5.3) through
strategic alliance with the suppliers (section 3.2.5) corresponds with this clause. In addition,
it also overlaps with the principle of pull (section 2.5.4) since erratic and slow delivery can
be minimised on the suppliers’ part as it is founded on strong relationship.
3. Process Control
Controlling construction processes involves the identification, planning, monitoring and
controlling of operations. A process chart has to be drawn, indicating the whole construction
process from reception of invitation to tender, to the construction and maintenance stages
(Lam, et al., 1994; Yeoh & Lee, 1996). This is similar to LC’s principle of mapping the value
stream, identifying the steps where value can be realised, and eradicating waste in the
process. Good communication and process structures ensure that any foreseeable problems
are openly discussed and the updated information disseminated downstream smoothly.
4. Inspection/Testing
The material controller is to inspect the quality of the delivered material by reviewing the
Delivery Order and the Purchase Order. Any non-conforming material is to be reported to the
Project Manager (PM). This requires the employee to work as a team within the principle of
making the value flow since any defective material transfers down the construction process
has become part of the building structure and it entails more cost to rectify the error.
5. Corrective Action
Peach (1997) contends that this clause ensures an organised method for continuous
improvement while Lam, et al., (1994) feels that this helps the firm in monitoring their
failure costs in any project following the control of non-conformances. Kaizen principle is
involved since the ultimate goal is in satisfying the client’s needs. Flow principle is included
as there is a need to remove obstacles that can hinder the smooth transition of the materials
physical transformation.
6. Servicing
During the Defects Liability Period (DLP), the MCs are still responsible for any defects in
the building works that arise during this time. When defects are related to the MC’s works,
the PM appoints the site engineer to rectify them. The same applies to the nominated SCs.
Such follow up action tallies with the mentality of customer orientation.
6
SUPPORTIVE PROCESSES
1. Management Responsibility
This requirement involves developing leadership policies and project plans directed towards
quality in construction. It is vital to delegate responsibilities and authority to perform
required functions contributing to quality within the organisation (Battikha & Russell, 1998).
Communication throughout the organisation is enhanced with the implementation of this
requirement (Peach, 1997). It is noted that close management involvement signals a
commitment to quality and quality management systems must be initiated ‘top-down’ for it
to be effective.
This clause is actually the very starting point in which LC can be initialised since only
top management is empowered to implement new systems with the aim of being better in
identifying the changing needs of the clients.
2. Quality Systems
A quality manual has to be written in order to ensure that the client’s requirements are met
(Peach, 1997; Yeoh & Lee, 1996). Together with this manual are the work instructions,
project quality plan and inspection records. With quality system in place, there is consistency
in the way in which construction is done. This would provide a basis upon which
improvement can be documented so that such valuable lessons learnt could be applied for the
next project.
3. Product Identification
Johnson (1993) notes that this clause refers to three types of identification systems that a
facility may use. Firstly, there must be means of tracing input from the source to the output.
Secondly, the contractor must be able to identify specific operations upon the output. Finally,
the ultimate destination of the output must be identified. In the construction industry, this can
be used to trace defective materials or equipment to its source. It also assists the MC in his
evaluation of SCs and suppliers.
This clause overlaps with the principle of making the value flow since the relationship of
the suppliers with the MCs is at stake. This can act as an impetus for all involved to be more
committed in their work and to co-operate as a team.
4. Training
The skills and knowledge of workers are vital to a construction project that aims to have few
defects and low re-working costs. Effective training programmes can result from feedback
programmes that identify areas for improvement (Johnson, 1993). Either in-house teams or
external trainers like the Construction Industry Training Institute (CITI) run by the Building
Construction Authority (BCA) can conduct the training programmes. This is appropriate as
the actions of participants affect the quality of the project. In addition, such courses
encourage the pursuit of perfection by harnessing the expertise of others and as a result, staffs
are more equipped to identify beyond the articulated needs of the clients
7
the UK construction firm, highlights that the effectiveness of ISO 9000 registration depends
on correct implementation, formulation and interpretation of ISO procedures according to the
specific requirements of the firms.
In conclusion TQM is an integral concept of all units integrator of instruments in LC,
which results in a real change in attitude of employees. This can only be discovered 3 to 4
years after the commencement of the programme. TQM based on ISO 9000 is essential to
create an environment in which other instruments of LC can be worked on. Commencement
with other instruments only has very temporary nature. Though not all ISO clauses support
the concept of LC, it aids in shaping the attitude of the employees and provides the
groundwork for LC implementation.
THE RESEARCH
The study has carried out a series of interviews with local contracting firms. The main
objective was to assess the local construction industry’s receptiveness and readiness in
implementing LC. A total of 21 firms were approached and only 6 firms agreed to take part
in the exercise. Five firms are G8 registered firms meaning they can tender for projects in
excess of S$50 million and only one firm is G7 which means they can bid for projects worth
up to S$50 million. All the firms have attained their ISO certification and are associate
members of Singapore Contractors’ Association Limited (SCAL). Managing directors are
targeted as they are most familiar with the operation of their quality management systems
and they are in the position to implement new concepts such as LC.
8
2. Work background
The workers generally have agricultural background thus they do not have any experience in
construction. Even if they have construction related skills, there is a vast difference in the
home country’s standards from those practised locally.
This issue seems to have influenced the extent to which LC principles and instruments
have been implemented. One such aspect is supervision where contractors have to provide
extensive support and directions to such workers. This is considered to be waste in LC since
all the workers should be entrusted and empowered to achieve high quality works
independently to ensure flow is not disrupted through multi-functional groups. All the
respondents feel this is an indispensable feature to ensure quality work is produced unless
there is a drastic change in the nature of the workforce.
3. Language and education barrier
Not having received much education, the workers are unable to even read the drawings, thus
their supervisors and project managers play the crucial role of giving specific work
instruction. The problem is aggravated, as the speaking of different tongues does not allow
effective transfer of skills to the workers. One contractor explains, “we even have to use
gesture and body language to communicate to them what they have to do! They can’t even
read a simple drawing.”
All the companies also find that it is impossible to have multi-functional groups, an
instrument for LC due to the following reasons:
• The great number of diversified works and specialised technicalities involved in
construction.
• The tremendous amount of wet trades involve is simply too time consuming that there
is little time left to train the workers so that they can form a flexible multi-functional
task group that can accommodate to unforeseeable changes quickly.
Due to the foreign workers limited education level and lack of skills; they are also not
well equipped in identifying the value and mapping the value stream.
Massive use of the four design characteristics of Buildable Design, standardisation,
prefabrication, precast and repetitive building components, is suggested to suit the needs of
the locals where the team can be multi-functional in the same area of the work i.e. aligning,
propping, installation of precast items such as beams, columns, slabs etc. This is also one of
the ways in which supervision can be reduced since in repetitive works, the workers’
experience can be tapped.
9
expertise with various projects for the same trade upon analysing the drawings, are able to
propose to the MCs alternative or novel construction techniques, enabling the MCs to obtain
more attractive pricing even with improved quality.
To ensure they can secure future jobs with the MCs, the SCs are willing to share this
information with them. In this way, the MCs feel they are released of the responsibility to
innovate since they can be kept abreast of the latest materials and technology without having
to invest in any research and development (R&D). One contractor even relates and elaborates
this point, saying,
“ Especially for Design and Build (D&B) projects, months prior to the
commencement of the project, we even include the precasters and the specialist
subcontractors to sit in the discussions...foreseeable problems are brought up and
thrashed out even before the actual construction!.…in one of the projects we have
handled, there is this special cantilever slab that has to have a higher working load
since it has to carry more weight and this requires a mould that is just going to be
used once! Moulds are expensive you know! So the precaster actually suggest that we
modify the design a little such that the mould s that are used for the other floors that
have even higher working load can be used for this additional slab...that was certainly
cost saving for us… ”
10
system under clause 4.9 of Process Control (section 4.2.3). A contractor said, “We have
group discussion and weekly meeting with the foreman and supervisors…The Project
Manager is the main co-ordinator. He will act as the judge and choose to adopt the better
system and changes.”
11
Efficient Use of ISO
All the firms benefit from the certification. The first contractor remarks that “ISO ensures
client’s satisfaction ... market practice to set up mock up samples and only upon client’s
approval then we proceed with the assembly ... corrective actions ensure that the client’s
satisfaction is fulfilled even during Defect Liability Period”. One contractor points out,
“ISO aids my company in monitoring the subcontractors’ work progress . . . and check
whether they maintain their standards since there is assessment done yearly.” A contractor
expounds on how his company’s mindset changes because of the implementation of ISO,
saying, “This system forces the old timers in my company to make changes who are
sometimes quite a challenge as they tend to go about doing their work based on their
experiences which are not properly documented . . . With ISO, quality work is achieved as
tasks are done with consistency, in accordance with the quality manual.”
REFERENCE:
Al-Nakeeb, A.A.R., Williams, T., Hibberd, P., and Gronow, S. (1998). Measuring the
effectiveness of quality assurance systems in the construction industry. Property
Management, 16(4), 222-228.
Atkin, B. and Pothecary, E. (1994). Building Futures. University of Reading, UK.
Ballard, G. and Howell, G. (1998). Shielding Production: Essential Step in Production
Control. ASCE, J. Construction Engineering. and Management, 124(1) 11 - 17. Annotation.
Battikha, M.G. and Russell, A.D. (1998). Construction Quality Management – present and
future. Canadian Journal of Civil Engineering, 25(3), 401-411.
Bennett, J. (1988). Building Britain 2001. Center for Strategic Studies in Construction,
University of Reading, Reading.
Bennett, J., Croome, D., & Atkin, B. (1989). Investing in Britain 2001. Center for Strategic
Studies in Construction, University of Reading, Reading.
Bennett, J., Pothecary, E., & Robinson, G. (1996). Designing and Building a World Class
Industry. Center for Strategic Studies in Construction, University of Reading, Reading.
Bennett, J., and Jayes, S. (1998) The Seven Pillars of Partnering. Thomas Telford, London.
Betts, M., Fischer, M. & Koskela, L (1994) The purpose and definition of Integration. ASCE
BSI (1987) BS 5750 Part 0. British Standards Institute.
12
Construction Industry Steering Committee. (1999). Re-Inventing Construction. Ministry of
Manpower and Ministry of National Development, Singapore.
Dym, C.L and Levitt, R.E (1991) Knowledge Based System in Engineering, pp206. McGraw
Hill.
Eaton, D. (1994). Lean Production Productivity Improvements for Construction Professions.
2nd Workshop on Lean Construction. Santiago.
Garnett, N., Jones, D.T & Murray, S. (1998) Strategic Application of Lean Thinking.
Proceedings IGLC-6. Guaruja, Brazil.
Gray, C. (1996). Aiming the Lean Enterprise the Plano 100 Case. Proc 4th IGLC Conference
Birmingham, UK.
Green, D. Stuart (1999) The Dark Side of Lean Construction: Exploitation and Ideology,
Proceedings IGLC-7. Berkeley, CA, USA.
Howell, G. A. (1999). What is Lean Construction – 1999. Proceedings IGLC-7. Berkeley,
CA, USA.
Howell, G. A. and Ballard, G. (1999) Bringing Light to the Dark Side of Lean Construction:
A response to Stuart Green. Proceedings IGLC-7. Berkeley, CA, U.S.A.
Howell, G.A. and Ballard, G. (1998). Implementing lean construction: Understanding and
Action. Proceedings IGLC-6. Guaruja, Brazil.
Hoyle, D. (1998). QS 9000 Quality Systems Handbook. Massachusetts: Butterworth-
Heinemann. 2nd Workshop on Lean Construction. Santiago
Johnson, P.L. (1993) ISO 9000-Meeting the New International Standards. Singapore:
McGraw Hill Inc.
Keivani, R.M., Ghanbari, Parsa, A.R. and Kagaya, Seiichi (1999) ISO 9000: Perceptions and
Experiences in the UK Construction Industry. Construction Management & Economics. 17,
107-119.
Koskela, L. (1992a) Improvement and Automation in Construction –Opposing or
Complementing Approaches? The 9th International Symposium on Automation & Robotics in
Construction. Tokyo.105-112pp.
Koskela, L. (1992b) Application of the New Production Philosophy to Construction.
Technical Report # 72. Center for Integrated Facility Engineering. Department of Civil
Engineering. Stanford University. 75 p
Koskela, L. (1993) Lean Production in Construction. Proceedings International Symposium
on Automation on Robotics in Construction. Houston
Lam, S.W., Low, C.M. and Teng, S.W (1994) ISO 9000 in Construction. Singapore:
McGraw Hill Book Company.
Latham, M. (1994). Constructing the Team. HMSO, London, U.K.
Low, S.P., Tan, B.K. and Ang, A.L. (1998) The Impact and Effectiveness of CIDB-PSB ISO
9000 Quality Management System in the Singapore Construction Industry. Unpublished
research report, School of Building &Real Estate, National University of Singapore.
Melles, B. (1994) “What do we mean by Lean Production in Construction?” 2nd workshop on
Lean Construction. Santiago.
Ohno, T. & S. Mito (1988) Just-in-time for today & tomorrow. Productivity Press
Cambridge.
13
Peach, R.W., (Ed) (1997). The ISO 9000 Handbook. Singapore: Irwin Professional
Publishing.
Plossl, G.W. (1991) Managing in the New World of Manufacturing. Prentice Hall
EngleWood Cliffs 189p
Schonberger, R.J. (1990). Building a chain of customers. The Free Press, New York. 349p.
Shingo, S. (1992). Non-stock production. Productivity Press, Cambridge, Ma. 454p.
Womack, James P, Jones, Daniel T. & Roos D (1991) The Machine that changed the world:
The Story of Lean Production. First Harper Perennial Ed. New York
Womack, James P., Jones, Daniel T. (1996) Lean Thinking. Simon & Schuster, New York.
350p.
Yeoh, S.K and Lee, N.C (1996) ISO 9002 in the Malaysian Construction Industry: Guide
and Implementation. Malaysia McGraw Hill Book Company.
14