Lean Construction, Value and Risk Management

Lean Construction

Lean Construction is a production management-based approach to project delivery. Lean Construction extends from the objectives of a lean production system - maximize value and minimize waste - to specific techniques and applies them in a new project delivery process. The reliable release of work between specialists in design, supply and assembly assures value is delivered to the customer and waste is reduced. Lean Construction is particularly useful on complex, uncertain and quick projects. WMCCE has access to expert knowledge in this area in terms of helping companies to implement lean into their organisation.

Lean Construction works by focussing companies on improving the quality, cost, efficiency and delivery of a product or service, to achieve greater customer satisfaction. It provides the knowledge and practical skills needed to turn the highly theoretical concept of lean construction into a practical tool they can implement effectively.

Benefits include:

  • Better relationships with suppliers and customers, generating repeat business and long-term relationships.
  • Improved staff morale.
  • Ability to prove savings to clients, not just tell them.
  • Interaction, innovation and fresh ideas.
  • Improvements of up to 50% on Quality, Cost and Delivery

What does the programme cover?

  • Pre-diagnostic – setting the aims and objectives.
  • Diagnostic – gathering data to provide focus for improvement.
  • Improvement activity – deployment of lean tools and techniques to realise improvement.
  • Follow up – identify barriers to success and setting improvement actions in place.

Value and Risk Management

Value Management is an extremely effective, but often misunderstood tool for the design of any project, product or concept.

Value Management seeks to provide the Owner / User / Purchaser with an item that satisfies the basic function they require at the best value for the money spent. The item can be a part, a piece of equipment, a new facility, the renovation of existing facilities, a raw material, a system, a consumptive good, an organisation, or virtually anything.

The term "Value Management" encompasses both Value Engineering and Value Analysis. Over the years, the term "Value Analysis" has generally become associated with applying value techniques to systems, organisations, strategic planning, standards, quality control and environmental impacts - that is, items that do not require heavy engineering input.

"Value Engineering" implies the application of value techniques utilizing the engineering and architectural disciplines to the design of products, facilities, renovations etc.

The benefits of the value management approach are significant, if a formal methodology is applied:

  • If involving major stakeholders, an excellent opportunity to form a team with common objectives focussed around the project
  • Better understanding of the required functionality of the finished product, giving the client / end user, not only what he wants but what he needs
  • A more sustainable end product
  • The ability to record in an audit train how all options were considered and why one was chosen above all others (reduces the risk of late comers changing the project with "nice to haves")

Risk Management is about the avoidance of unnecessary cost and time through

  • the identification of possible hazards and risks associated with a project at whatever stage, from early planning through to mobilisation and operation
  • the quantification of such risks and hazards, so that those which are most critical or significant can have a mitigation action plan established
  • the regular review and ulitmate mitigation of all critical and significant risks so that costs associated with them are reduced to a minimum.

There are strong links between Risk Management and Value Management, in as much as failure to consider risks during Value Management may not lead to the best value solution.

  • Was the project generated as a result of known risks?
  • Can ideas focus on how to get round known risks?
  • Evaluation criteria may need to address those ideas which are more risky
  • Risk allowances should be included in life cycle costing to compare "like with like".