LEAN CONSTRUCTION PROCEDURES (LCP®)

LEAN Benchmarking

KPI and Value

Constructing Excellence do a great job in providing a vehicle to cross validate your performance within a sector - and provide a service second to none. It is not bespoke - it can't be, that's up to you and the Client. It also provides no real time performance enhancement tools. Again. that's up to you. A word of caution - if it is too in-house, it may be extremely difficult for an organisation to use its KPIs to get comparisons with other similar organisations. What exactly do you need to track and analyse? - be honest and don't follow trends. A benchmarking study of 66 construction projects with a total value of £500 million showed that three quarters of the projects exceeded their budgets by up to 50% and two thirds had exceeded their original completion date by 63%. [Source: Benchmarking the Government Client Stage 2 Study 1999]

LEAN Process KPI

Complimentary to the lean working procedures is the industry standard benchmarking KPI's which give a measurement of project performance against the industry sector. The project team need to establish which KPIs are relevant and important to the project, the intervals at which they will be completed, reviewed and improvement action plans generated.

Two way benchmarking with all stakeholders to the project should be encouraged. See our page on example LEAN Benchmarking a Project.

LEAN	Description	KPI or measure
Value	- Establish the expected value from the end users standpoint	Satisfaction Product Satisfaction Service Defects Cost performance Visibility of Objectives and Goals Safety in design

Value Chain	- Map out the value chain and eliminate non-value adding activities	Root Cause Analysis Predictability cost Predictability Time Waste Measure Measures the profit

Flow	- Aim for one piece continuous flow & synchronise all activities	Hit and Miss Capture Safety Productivity Programme Certainty Number of Disputes Measure Change Relationship Measure

Pull	- Don't make anything upstream until needed	Actionable Indicator Make Ready List Productivity Programme Certainty Supply Chain Satisfaction

Perfection	- Increase rate of flow & compete against perfection	Direction Indicator GAP Analysis Design Cost Creativity & Innovation Capture of Learning points Training and Progression Environmental Impact

If this is undertaken with CRM this can provide a powerful tool for managing the LCP environment. Along with KPI reports an Andon can be used. Andon simply means â€œlightâ€ in Japanese. An Andon is any visual indicator signaling that a â€œabnormal situation,â€ that can not be resolved without preventing a stoppage (as defined by takt time). Poor quality, lack of parts information or resouce may cause an abnormal condition (see root cause analysis). The sensitivity in the approach to analysis is often based on a High Medium Low ( Red Amber Green RAG) categorisation system which can be represented graphically as increasing consequence against increasing occurrence.