LEAN CONSTRUCTION SUPPLY CHAIN-SCM &LPS

1. helpdesk@construction-productivity.co.uk
htt://www.construction-productivity.co.uk
LEAN CONSTRUCTIONLEAN CONSTRUCTION
SUPPLY CHAINSUPPLY CHAIN
MANAGEMENT (SCM)MANAGEMENT (SCM)
&&
LAST PLANNER SYSTEMLAST PLANNER SYSTEM
(LPS)(LPS)

2. LEAN CONSTRUCTION
 Lean construction main objective is
to maximizes value and reduces
waste.
 It applies specific techniques in an
innovative project delivery
approach.
 It including:
1. supply chain management,
2. Just-In-Time techniques.

4. LEAN CONSTRUCTION
 As well as the open sharing of
information between all the parties
involved in the production process.
 Lean manufacturing is an outgrowth of
the Toyota Production system.
 Developed by Taichii Ohno in Toyota
in the 1950s.

5. SUPPLY CHAIN MANAGEMENT
The term supply chain, includes,
all the activities that lead a high
quality product.
Customer satisfaction comes
from a good service or high
quality product such as:
materials
information

6. SUPPLY CHAIN MANAGEMENT
 funds
 People
 etc.
 Some researchers argue that the cost of a
product or service will increase of up to
10% percent because of poor supply
chain design.

7. SUPPLY CHAIN MANAGEMENT
 Supply Chain Management (SCM)
analyzes the impact of design work on
the construction process.
 It enables much better project
planning and management.
 Through SCM, all parties are kept
aware of important determinants such
as:

8. SUPPLY CHAIN MANAGEMENT
 commitments
 schedules
 A high level of team work and corporation
that can:
 Source, produce and deliver products with
minimal lead-time and expense.

9. SUPPLY CHAIN MANAGEMENT
 Construction industry does not emphasize
enough on construction productivity and it’s
determinants.
 The industry measures performance in
terms of the following:
 completion on time
 completion within budget
 meeting construction codes

10. SUPPLY CHAIN MANAGEMENT
 Contractors often hire subcontractors
 Sub contractors do not have contracts
with the owner
 Poor supply chain
 Sometimes client pays a high price to
contractor, however, the subcontractor
may still have to work with inadequate
budgets.
 Often compromising quality as a result.

11. SUPPLY CHAIN MANAGEMENT
 Communication tends to be via the
contract, and is limited.
 Innovation moves slowly in
construction.
 Sometimes there is a complete lack
on innovation.
 Few large companies, and almost no
small companies have implemented
the concept of a high quality product
or service.

12. SUPPLY CHAIN MANAGEMENT
 There is no desire to have a productivity
manager.
 The traditional approach is to depend on
the experienced staff to run projects
efficiently.
 Such staff are rarely if ever trained in
optimization techniques.

13. LAST PLANNER SYSTEM
 The Last Planner System (LPS)-for
small firms, improves both design
and construction schedule/
programme predictability.
 Work completed always on time.
 It is a system of inter-related
elements.

14. LAST PLANNER SYSTEM
 Full benefits come when all are
implemented together.
 Based on simple paper forms, it can be
administered using Post-it notes, paper,
pencil, eraser and photocopier.
 A spreadsheet can help.

15. LAST PLANNER SYSTEM
 LPS begins with collaborative
scheduling/programming engaging the
main project suppliers from the start.
 Risk analysis ensures that float is built in
where it will best protect programme
integrity and predictability.
 Where appropriate the process can be
used for programme compression too.

17. LAST PLANNER SYSTEM

18. LAST PLANNER SYSTEM
 A key part of the continual improvement
process is a study of the reasons why
tasks promised in the WWP are delivered
late.
 The following chart shows typical
reasons:

Figure 4: example of a reasons Pareto
chart

19. LAST PLANNER SYSTEM

20. LAST PLANNER SYSTEM
 Differences between Lean
Construction approach and PMI
approach
 Lean Construction Exam questions.

21. LAST PLANNER SYSTEM