Working “lean” is a business principle for reducing waste and increasing profits. It can apply to any industry.
Lean construction has been slow to develop, according to the Lean Construction Institute (LCI). But construction technology developments are making this practice easier to implement and therefore more attractive to construction business owners and managers.
How Does Lean Construction Work?
Lean construction shares the same 5 business principles as lean manufacturing:
- Identify value
- Map the value stream
- Create better flow and fewer bottlenecks
- Establish a pull-planning system
- Seek perfection and continuously adjust principles 1-4.
The most basic residential renovation has thousands of documents and pieces of information. Today, it’s impossible to manage without technology.
Value stream mapping approaches the job from the customer’s point of view and explains the value possibilities and how you’re maximizing them. “Necessary materials, labor, and other supplies are identified before each stage of work,” says PlanGrid “…rather than during the fray or only after bottlenecks create delays.”
Lean construction principles reduce waste:
- Defects/reworks due to lack of skilled/trained labor, outdated information, etc.
- Excessive inventory ordered “just in case”
- Extra materials processing (dimensional lumber cutting, assembly of trusses never used anyway)
- Unnecessary transportation of unnecessary materials, workers, or equipment to a jobsite
- Wasted time due to unnecessary distances between worksite locations and/or poor storage sites
Benefits of Lean Construction
The new generation of workers is invested in your company. They will appreciate lean construction business principles and take pride in working for your organization. They’ll delivery higher quality work. You’ll also realize higher quality work by virtue of early problem-solving to reduce rework.
Advanced pull-planning encourages effective risk management.
You sometimes know when a project is designed with a formula for failure. Walk away before you waste time, lose money, and lower morale. Remember, you’re seeking higher profit margins and greater ROI (return on investment). You’re using lean construction business principles.
Information You Need
Business permit data sorting is time-consuming. Construction Monitor does that for you. Call 800.925.6085 (International/435.586.1205) or contact us today to learn more about using business permit data to increase profits.