Eighty-five percent of the reasons for failure are deficiencies in the systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better. – W. Edwards Demming

Forget BIM, forget Big Data…. the single factor causing massive inefficiencies across that AECOO sector is the lack of the consistent application of proven LEAN construction delivery methods and associated processes. (AECOO: Architecture, Engineering, Construction, Owner, Operator/Operation)

The majority of AECOO practitioners suffer with only 20%-25% of projects being on-time, on-budget, satisfactory, and/or without legal issues. Less than 5% of real property owners consistently achieve 90%+ success rates across the board.

Job Order Contracting, a LEAN integrated project delivery method specifically developed for repair, renovation, and minor new construction consistently enables superior outcomes as shown in the figure below.

LEAN processes allow owners, contractors and all participants and stakeholders, to collaborate in order to…

• Predict project outcome with greater certainty,
• Assure full financial transparency,
• Prioritize projects,
• Shorten project delivery times,
• Virtually eliminate change orders and legal disputes,
• Maximize dollars spent upon actual construction versus waste and/or “administration”,
• Be compliant with regulatory requirements,
• Track and analyze projects and success, including the used of key performance indicators,
• Leverage the benefits of best value procurement, and
• Develop an atmosphere of continuous improvement by integrated previously disparate skills, entities, and individuals.

The OpenJOC approach incorporated Demming’s 14 points…

1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.

Learn more…

www.4BT.us LEAN Construction Delivery Solutions