There are two robust and proven LEAN Construction methods:
- Integrated Project Delivery, IPD, for major new construction, and
- Job Order Contracting, JOC, for repair, renovation, and minor new construction.
We will focus upon Job Order Contracting as we all are aware that the bulk the costs associated with buildings and other physical structures are associate with repair, renovation, and ongoing operations.
An example of LEAN Job Order Contracting, is the OpenJOC(TM) Platform, a suite of defined process, support services, supporting technology, and a common data environment (CDE). Application of core LEAN processes to construction project delivery in this manner requires owners and contractors to collaboratively make better project management and project delivery decisions. Procedural best practices, leverage of diverse knowledge resource, internal and multi-party agreements are core components and are fully defined within written set of processes via a JOC Operations Manual / JOC Execution Guide.
The focus of LEAN construction project delivery methodologies is the consistent deployment of strategies to maximize project value for all participants and benefactors, while at the same time mitigating variation and risk. The process is not static and requires initial and ongoing training, regular audits, and continuous improvement.
Furthermore, the required levels of collaboration among all participants and stakeholders (real property owners, facilities management, technical and procurement teams, building users, builders, designers, etc.) are far greater than traditional construction delivery methods. Change management is part of the equation, and can be problematic for some organizations.
The OpenJOC Job Order Contracting Construction Delivery Methodology can be readily adapted to meet an organization’s need, vision, mission, and desired outcomes, however, certain basic tenants… collaboration, financial transparency, shared/risk reward, mutual trust/respect, and a common data environment, etc. … must be maintained.
Similarly, established workflows must be maintained and supported. Descriptions of workflows, processes, procedures, standards, templates, forms, locally researched unit price books, forms and checklists used over the project life cycle… all play a role in contributing to best value outcomes.
While most organizations today whether owners, builders, facilities management, etc. … do not use formalized for LEAN project delivery methodology and run their projects as they always have…. new economic and environmental demands will likely cause this to change rapidly.
It is also important to remember that all JOC Programs are not the same. Organizations should assure that dynamic LEAN methodologies and processes are leveraged in order to assure that desired benefits are attained from their JOC Programs. JOC should never be used solely as a procurement tools or to “fast track projects”. While both procurement and total project delivery times can be expedited with JOC, the primary motivation and benefit of JOC is the ability to deliver BEST VALUE.
The Value of a the OpenJOC LEAN Job Order Contracting Construction Delivery Methodology
“Eight-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 Deming
The OpenJOC approach provides the framework, processes, guidelines and techniques to manage the people, information, and technology to achieve best value project outcomes. It significantly increases the odds of project success and thus provides value to organizations capable of proper implementation.
Furthermore the OpenJOC suite of tools and services don’t carry the excessive administrative fees or other negative impacts associated with alternative offerings….yet deliver multiple benefits, some of which are listed as follows;
- Renovation, repair, and minor new construction projects are completed efficiently.
- Significantly higher levels of consistency and dependability resulting from the use of common procedures, locally research unit price cost data, workflows and forms/reports.
- Technology and processes that are easy to use and simple to deploy, resulting in shorter learning curves and reduced effort in scoping, procuring, and executing projects.
- Owners and contractors mutually benefit by working directly together without any inherent bias potentially imposed by a third party. Mutual understanding of project scope is virtually assured.
- Processes are in place to limit problems, however, processes are in place for resolving problems quickly.
- Teams are proactive and collaborative, reducing the time project managers spend dealing with issues
- Managing expectations with stakeholders is also a core component.
- The development of formal and informal communications drives enhanced understanding of the project, its objectives, and the requisite approaches among all participants.
- Improved use of limited financial resource
- Compliance monitoring and assurance.
- Better project definition, more detailed construction cost estimating, more formal budgeting and alignment of actual project costs with budgets
In summary, public sector real property owners that have good LEAN processes, and follow them, obtain better results in a consistent, repeatable and predictable manner.
