Lean Construction - Explained Simply

What is Lean Construction?

Lean Construction – it may sound like a diet for construction sites at first, but behind it lies a clever concept for bringing the construction industry up to speed. By applying the Lean principles, Lean Construction aims to improve processes and workflows in construction in order to reduce waste, cut costs and increase efficiency.

The concept originates from Lean Management, which emerged in the automotive industry and was transferred to the construction site in the 1990s.

Large construction companies are already using the Lean Construction concept to increase their productivity, whereas it is not yet as widespread among smaller businesses.

In this blog post, we will introduce the 5 Lean principles and explain how they can be implemented in construction companies.

The 5 Lean Principles

1. Define customer value

The customer is king – and not just when building castles! Lean Management places great importance on customer orientation. In construction, this means identifying and defining value from the customer’s perspective. An important question in this context is: What matters to the customer?
Good value for money, quality, reliability and on-time delivery are just a few of many possibilities.

2. Identify the value stream

Once customer value has been defined, the second step focuses on the analysis and optimization of all value-adding processes.
In the construction industry, this means examining exactly how the customer values defined in step 1 are created during the construction process. The goal is to maximize value-adding activities while reducing unnecessary tasks and avoiding waste.

3. Optimize flow and avoid waste

Once the value stream has been identified, the next step is to remove unnecessary activities from the process and ensure smooth operations. Waste such as waiting times or errors should be avoided, and processes should be optimized so that a continuous flow without interruptions is achieved.

4. Pull principle

Since customers are at the heart of Lean Management, it is crucial to understand their needs. Here, it is important to focus on what they really require. In construction, this means, for example, ordering only the quantity of building materials that is actually needed in order to prevent excess stock. That way, not only does the operation stay lean, but costs also stay under control.

5. Continuous improvement and the pursuit of perfection

The goal of Lean Management is to continuously increase the added value for the customer. As a result, there are always processes that can be optimized. The fifth Lean principle in construction therefore means continuously looking for ways to accelerate construction processes or increase quality.

3 Tips for Implementing the Lean Principles

• Customer surveys:
  Conduct regular surveys or interviews with your customers to find out which aspects of the construction project matter most to them. Use this information to better align your offerings and services with customer needs.

• Introduce digital tools:
  Digital tools enable better communication, planning and collaboration between all project stakeholders. One possible solution is Bausicht, which offers general contractors comprehensive software for subcontractor document management, digital access control and construction logistics.

• Introduce KPIs (Key Performance Indicators):
  Define clear performance metrics that allow you to measure and monitor the success of your improvement initiatives.

*Source: Lean Construction Institut Deutschland e.V. (LCI-D) (2018). Lean Construction in Deutschland - Stand der Einführung, Erfahrungen und Potenziale.