Exploring The Relationship Between Construction Productivity And Lean Project Delivery

Joe O’Sullivan, BTech (Ed), (Hons) MCIOB, Regional Director Pharma (Ireland), John Sisk & Son (Holdings) Ltd

Productivity can be defined as the volume or value of output per unit of input. In the construction process, productivity is best understood by fo­cusing on labour productivity, and measuring the volume or quantity of output per person per day. Productivity is by definition a “comparative” concept, generally discussed in the context of comparing the productivity of a person or group with another person or group, or alternatively by measuring the relative productivity of the same group over time or in different work environments.

There are 6 key factors which influence construction productivity

1. The skills, ability and motivation of the workforce; key issues relate to the selection and training of labour and craft, providing them with clear output targets, measuring and providing feedback on productivity. Direct communication, demonstrating respect and encouraging open communication and collaboration between trades are key issues for our site management and senior management alike. Selecting, training and supporting our supervisors is also key.

2. The organisation of the production process; A lean process requires efficient logistics and strong collaboration between trades. Good logistics will reduce the key waste areas of excessive transport, poor inventory management, inefficient personnel movement, and waiting.

3. Non-labour resources; The appropriate implementation of non-labour resources is a further key factor in maximising labour productivity – resources range from mechanical handling and access equipment to innovative labour-saving devices, and the use of digital technology.

4. The “working environment” as an influence on productivity; This reflects the softer issues of providing a fair and just workplace, where mutual respect and openness are clearly demonstrated. The key is the motivation and productivity that is engendered by a culture where each person feels that their contribution is recognised and their opinion respected.

"Lean Construction takes the key Lean concepts of Customer, Value, Waste and Process Flow, and applies them appropriately to the unique circumstances of the construction process"

5. External Factors; Key examples are the uniqueness of the project itself, the extent of change or re-work which may occur, and the impact of external suppliers. Key to limiting the negative impact on productivity is the development of strong interpersonal relationships across all levels of an organisation between your organisation, your customer and your suppliers.

6. Offsite assembly; “Manufacturing” in the context of this discussion can be loosely defined as the repetitive making, fabrication and possibly the assembly of components. Typically, the process is automated to the greatest extent possible, and takes place in an unchanging environment. Materials move through work areas, workers remain static. The construction process in some respects is the opposite – it requires workers to constantly move through a building, the environment is constantly changing, and the extent of repetition and replication is limited. It is not difficult to understand why manufacturing productivity has dramatically improved while construction productivity has remained comparatively static in the past 30 years. It is self-evident therefore that appropriate pre-assembly of components offsite can have a significant bearing on labour productivity.

So how do Lean concepts, Innovation, and Digital Project Delivery connect with these productivity ideas? Let us consider this from first principles.

Lean Manufacturing practice, as well as the ongoing innovation and development of new technologies have underpinned the improvement in manufacturing productivity, but as noted earlier, the environmental and contextual differences between Manufacturing and Construction processes is a limiting factor on the influence of Lean Manufacturing practice on the construction industry. The other significant factor is the contractual and commercial arrangements which pertain – typically a manufacturing process is effectively controlled by a single entity or organisation, whereas a construction process involves multiple parties assembled in a unique combination for each new project.

Lean Construction takes the key Lean concepts of Customer, Value, Waste and Process Flow, and applies them appropriately to the unique circumstances of the construction process. Lean tools – direct observation, activity sampling, visual boards for communication and A3 problem-solving tools for example - contribute significantly to productivity.

“Digital Project Delivery” (DPD) is a concept of maximising the potential of digital technology to enhance the construction process and output. DPD can be categorised under three headings – the use of a Common Data Environment to optimise collaboration and communication, the use of Building Information Modelling (BIM) to model, schedule, measure and provide asset data relating to buildings, and the imaginative and innovative use of new technologies – cloud scanning, drones, interactive screens, AR, VR for example.

Projects have certainly benefited in safety, quality, schedule, from the appropriate use of DPD. At a broader industry level DPD facilitates a cross-functional approach – from work-winning through design, scheduling, execution (field and project management) through the disciplines of engineering and commercial aspects. All of these aspects contribute significantly to productivity.

Pulling all of this together, productivity requires the delivery of greater output – by which we mean customer value – for the same amount of input. There are two key aspects to this – the first is the enhancement of the productivity of craft, labour and staff through more efficient construction techniques, new materials and equipment, offsite manufacturing and digital project delivery. These allow us to deliver projects more safely, more speedily, more cost effectively, to a higher level of quality and thus to a higher level of customer satisfaction. The second is the absolute focus on productivity of the entire supply chain, in particular our smaller partners, whereby we measure and seek to improve outputs in collaboration with our full supply chain. The approach must be underpinned by a Lean programme, which centres on concepts of mutual respect, collaboration, relationships, and seeking to achieve win-win solutions from customer right through our supply chain. Digital project delivery is a key element of this productivity and value drive, allowing faster, more accurate and effective communication, visualisation, planning and record management.

Distilling into three simple “takeaways” – to maximise construction productivity;

1. Maximise the output of your people by every means possible

2. Maximise the use of “tools” – both the physical resources and the Lean techniques

3. Maximise the impact of technology on your processes.