Lean construction principles focus on reducing waste, improving workflow and making better use of key resources such as labor, materials and equipment. And you don’t necessarily have to undertake a complete operational overhaul to implement them.
By identifying and correcting small inefficiencies across your business, you may see a positive impact on financial performance. Even modest improvement in productivity or materials handling can meaningfully boost job margins. Here are some ideas.
Review transport and deployment
Unnecessary transportation of equipment, materials and labor before they’re needed can waste time and effort on a construction project. One way to reduce inefficient movement is to use fleet management software to track vehicle locations, reduce idle time and coordinate deliveries so equipment, materials and crews reach jobsites more efficiently.
Of course, getting resources to the jobsite is only part of the challenge. Once there, work can quickly stall if crews must wait for preceding tasks to be completed. Productivity may also suffer when project teams are delayed by pending plans, unanswered information requests, job progress updates or required approvals.
Again, the right technology can help keep work moving. Construction management software and mobile apps allow project teams to share plans, updates and documentation in real time from virtually anywhere. By leveraging these tools, you may be able to improve coordination, reduce delays and keep projects on schedule.
Track waste and defects
Under a lean approach, “motion waste” refers to unnecessary movement or unproductive activities. Examples include making multiple trips across the jobsite to obtain materials or using unnecessarily labor-intensive methods when more efficient tools or processes are available. Extra movement and exertion put workers at heightened risk of fatigue or injury and may increase the likelihood of accidents — especially in inclement weather or on difficult-to-access parts of the jobsite.
Develop ways to monitor motion waste and use the data to identify strategies to reduce it, such as:
- Scheduling crews in more logical (leaner) sequences,
- Staging materials closer to where they’ll be used, and
- Improving communication between field supervisors and crews or subcontractors.
There’s also the ever-present risk of construction defects. Costly rework can result from either outright errors or installations that violate building codes or project specifications. In addition to increasing labor and materials costs, rework can delay project completion and erode job margins. Take a similar approach here: Capture and analyze data on defective work and engage in a continuous effort to reduce mistakes.
Watch out for overproduction and overprocessing
In construction, overproduction occurs when a task is completed faster than scheduled or before the next sequential task is ready to start. It may seem like a good thing, but these scenarios can result in downtime or wasted materials. Plus, the jobsite can become needlessly congested, increasing safety risks.
Watch out for overprocessing, too. Sometimes also called “excess processing,” this term refers to redundant steps that don’t add value, such as altering or double handling supplies or materials. It can also include inefficient administrative workflows, such as double data entry, multiple approval signatures, redundant daily reports or unnecessary email chains. Over time, overprocessing can increase overhead costs and slow decision-making across projects.
Pay special attention to materials and inventory
Although many contractors don’t maintain traditional inventory, materials stored on-site or in a yard still represent tied-up cash and potential waste. Lean construction principles encourage keeping only the materials needed for upcoming tasks and coordinating deliveries closely with project schedules.
To support this approach, review job schedules regularly to align deliveries of materials with upcoming job phases. Communicate closely with suppliers and adjust orders as timelines shift. Also, to improve ordering accuracy over time, keep records of materials usage during projects and supplies left over at the end of each job. Better visibility into materials usage can help you identify purchasing trends and negotiate supplier pricing. These steps can also reduce waste, free up working capital and keep jobsites more organized.
Lean into lean
For contractors, operating efficiently on every project can mean the difference between turning a profit and suffering a loss. By exploring lean principles, you may find ways to run jobs more smoothly — which can lead to stronger financial results. We’d be happy to help you identify cost drivers, track job performance and implement processes that support long-term profitability.