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 3DEXPERIENCE Construction
Akio Moriwaki
Akio Moriwaki
As head of global marketing for the AEC Industry at Dassault Systèmes, Mr. Moriwaki launches and promotes groundbreaking Industry Solution Experiences including "Optimized Construction," "Façade Design for Fabrication," and "Civil Design for Fabrication." He is a member of buildingSMART.

How Lean Construction Practices Are Decreasing Schedules for Contractors

 
September 11th, 2014 by Akio Moriwaki

McGraw Hill Construction, the Lean Construction Institute, and Dassault Systèmes teamed up to produce an in-depth report on Lean Construction. Below is an excerpt from that report on the the impact Lean practices are having on contractors in regards to scheduling.


The Impact on Contractors of Schedule Decreases Due to the Adoption of Lean Practices

impact on contractors scheduleReduced project schedule is one of the top benefits of adopting Lean practices, and saving time in the construction industry also cuts costs on projects and can increase profitability.

However, the savings only accrue to the contractor if the owner has not already factored the reduced amount of time into their expectations of the contractor, especially in the case of a negotiated project, or if the contractor has not deemed it necessary to build those cost savings into their bid in order to win a project in a highly competitive market.

The study results suggest, though, that these options are not mutually exclusive. About two thirds of contractors report that the schedule savings they experience due to their Lean practices do have a positive impact on the profit they experience in their projects, and just about the same percentage of contractors report that they are able to bid projects more competitively due to the schedule savings.

Tweet: About 2/3 of contractors report that adoption of #LeanCon allowed them to bid more competitively @Dassault3DS http://ctt.ec/eyEIi+Tweet: “About 2/3 of contractors report that adoption of #LeanCon allowed them to bid more competitively”

Clearly, there must be significant overlap of firms who both have schedule reductions feeding their bottom line and schedule reductions absorbed in their efforts to be more competitive.

However, the findings also reveal that the industry is nearly unanimous about the growing expectations of owners that projects can be done in shorter time frames due to the adoption of Lean practices in the industry.

Tweet: The industry expects that projects can be done in shorter time frames due to the adoption of #LeanCon @Dassault3DS http://ctt.ec/8XBEi+Tweet: “The industry expects that projects can be done in shorter time frames due to the adoption of #LeanCon”

This aligns with the previous finding that increasing their firms’ competitiveness rather than direct profits is the larger benefit from Lean.

The in-depth interviews with Lean experts shed further light on this finding. Experts report that, even just five years ago, most owners were not familiar with Lean, but they see a broad change occurring.

Some believe that owner mandates will be the most critical driver of Lean construction in the industry in the future, a shift from what they currently see occurring, other than in one or two sectors like healthcare with engaged owners that have led the industry on Lean adoption.

Tweet: How #LeanCon Practices Are Decreasing Schedules for Contractors @Dassault3DS http://ctt.ec/z5Q9Z+Click here to Tweet this article


Download the full Lean Construction SmartMarket Report, with our compliments.

Related Resources

Dassault Systéms’ Lean Construction 3DEXPERIENCE® Solution

Lean Construction Institute

McGraw Hill Construction

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Categories: AEC, Business Processes, Dassault Systèmes, Lean Construction

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