Value Improvement Methods

Value Improvement
Methods
7.1 Introduction
7.2 Value Engineering
Basic Concepts • Methodology • Implementation
7.3 Constructability
Basic Concepts • Conceptual Planning • Engineering and
Procurement • Field Operations • Implementation
7.4 Quality Management
Basic Concepts • Quality System • Quality Improvement
Techniques • Implementation
7.5 Conclusions
7.1 Introduction
This chapter deals with several concepts that will help improve value in the design and construction
phases of a project. These are value engineering, constructability, and quality management. The essence
of each of these concepts is as follows:
•
Value engineering
— To deliver the required functions of a component or product at lowest cost
while meeting quality, performance, and reliability specifications
•
Constructability
— To integrate construction knowledge and experience in project planning,
design, and execution to better achieve project outcomes
•
Quality management
— To deliver quality with the view of customer satisfaction in all operations
Each of these concepts involves systematic approaches and will require some changes in management
perspectives to fully realize the benefits from their implementation. The key principles for each of these
concepts will be elaborated in turn. Their methodologies will also be presented.
7.2 Value Engineering
Basic Concepts
The concept of value engineering (VE) was born out of necessity almost immediately after World War
II when, as a result of wartime shortages, substitute materials were used in innovative designs that offered
better performance at lower costs. Much of this happened in the General Electric Company under the
attention of Harry Erlicher, the Vice President of Manufacturing. Eventually, in 1947, Lawrence Miles, a
staff engineer with the company, was assigned to formalize the approach. The program saved millions
David K.H. Chua
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of dollars for the company. To replicate the success, value engineering became a mandatory requirement
in the Armed Services Procurement Regulations (ASPR) in 1962. Subsequently, it was introduced to two
of the largest contracting companies in the U.S., namely, the U.S. Army Corps of Engineers and the U.S.
Navy Bureau of Yards. Eventually, its use spread to other companies and contracting agencies posing
similar successes.
Essentially, VE is a systematic approach to eliminate any unnecessary cost of an item that does not
add to its required function. It does not simply reduce cost by using cheaper substitutes or lesser
quantities. Instead, its methodology centers on the following questions: What must it do? What alternative
material or method can perform the same function equally well? This is function analysis: the principal
component in VE. Thus, in a construction project, VE involves analyzing the functional requirements of
components, subsystems, and even construction methods.
The other aspects of VE are cost and worth. Total cost is the objective to be minimized in any value
engineering exercise, while worth represents the minimum costs to achieve the required functions. Worth
forms the means for generating alternatives and serves as the baseline against which various alternatives
can be compared. Any reduction in unnecessary cost represents the savings achieved.
Methodology
The formal approach for value engineering is often referred to as the job plan. The VE job plan comprises
several phases. Generally, although there are possible variations, the following five form the essence of
the job plan (see Fig. 7.1):
1.
Information phase
— Getting the facts
2.
Speculation phase
— Brainstorming for alternatives
3.
Analysis phase
— Evaluating the alternatives
4.
Development phase
— Developing the program
5.
Recommendation phase
— Selling the recommendations
FIGURE 7.1
Phases in the value engineering job plan.
Information
Phase
Speculation
Phase
Analysis
Phase
Development
Phase
Objectives:
• Provide
information base
• Select areas of
study
Objective:
• Generate
alternatives for
solving problem
Objectives:
• Evaluate
alternatives
• Rank alternatives
Objectives:
• Develop details
• Finalize selection Recommendation
Phase
Getting the facts
Brainstorming
Alternatives
Evaluating the
alternatives
Developing the
program
Selling the
recommendations
Objectives:
• Develop
implementation plan
• Present
recommendation
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Information Phase
One objective of this phase is to determine and evaluate the function(s) of the items that have the greatest
potential for eliminating unnecessary cost. This answers the question “what
must it do?
.” The function
analysis approach is one method to achieve this (Dell’Isola, 1982). It employs a verb-noun description
of the function, for example, the function of a non-load-bearing wall may be defined to be “
enclose space
,”
where
enclose
is the verb and
space
the noun. In function analysis, the focus is on why an item is necessary
(i.e., its function performance) rather than on the item per se. This paves the way for substituting with
cheaper alternative ways to achieve the same function(s) in the latter phases.
All the functions identified are classified as either basic or secondary. The basic function of an item is
the primary purpose the item must achieve to fulfill the owner’s requirement. A secondary function, on
the other hand, is not an essential feature to the owner and usually arises from a particular design
configuration that makes the item look better. Sometimes, however, a secondary function may be required
by regulatory or building codes. In this case, it is still a critical function essential to the performance of
the item. The categorization of the functions enables costs incurred for the nonessential secondary
functions to be isolated from those required to provide the basic functional performance. In this way,
the number of secondary functions with its associated costs can be reduced (or eliminated) without
compromising required owner’s functions. Moreover, focus can be placed on alternatives to reduce the
cost of providing the basic functions.
The next objective is to determine the cost and worth of the various functions identified. The worth of
an item is the lowest cost to perform the basic and required secondary functions, while nonessential
secondary functions are not assigned any worth. The cost/worth ratio is an indication of the functional
efficiency of the item. A high cost/worth is also indicative of the potential for reaping improvements in value.
The Function Analysis Systems Technique (FAST) originally developed by Charles Bytherway in 1965,
has been widely used to determine the relationship between functions of an entire system, process, or
complicated assembly. A FAST diagram gives graphical representation of the interrelation of functions
and their costs and is an excellent technique to use for this phase.
Other information required at this stage may include the following:
• Constraints that still apply at this stage
• Constraints that are unique to the system
• Frequency of use of item
• Alternative designs considered in the earlier concept
Speculation Phase
The sole objective in this phase is to generate various alternative methods of achieving the same functions,
answering the question “
what else will satisfy the same needed functions?
” Creative thinking techniques
are used to produce as many ideas as possible. The idea in this stage is not to leave out any possible
solution. Alternatives will only be evaluated in the next phase.
There are several techniques that can be adopted in this process. Brainstorming is the most popular
of these. It is based on the principle that ideas are generated in large numbers if the group is diversified.
With a large number of ideas, there is an increased probability of getting good ideas. Some of these may
arise spontaneously, whereas others may be derived from building upon those already proposed. At all
times, no criticism or evaluation can be offered. All ideas are documented and categorized for later
evaluation.
Other group techniques (Jagannathan, 1992) that can be used include:
•
Checklist
— The checklist comprises a set of questions or points. They provide idea clues to the
VE team. For example, can the material of the item be changed?
•
Morphological analysis technique
— There are two steps in the technique. The first is to identify
all the parameters or characteristics of the item. The next step is to seek alternatives in each
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characteristic. These characteristics can then be blended in a variety of ways to improve the basic
performance of the item.
•
Delphi method
— This technique uses written questionnaires. It is advantageous in cases where
participants find it difficult to attend any VE workshop session.
Analysis Phase
The objective here is to evaluate the alternatives generated in the preceding phase and select the best
cost-saving alternative. This process can be difficult if there are too many alternatives in the first place.
The number of alternatives can be reduced to a manageable size using filtering (Jagannathan, 1992),
where the initial ideas can be rapidly evaluated against the criteria in such filters. For example, one
important filter is “safety.” Thus, if an alternative is perceived to affect safety levels adversely, it can be
filtered out for later consideration. “Technology” can be another filter to defer alternatives that require
technology not available in the organization and may require considerable R&D efforts.
The remaining alternatives are then ranked in order of their effectiveness. Their effectiveness is evaluated
based on some weighted criteria measure. The decision matrix in Table 7.1 shows a comparison
of various alternatives brainstormed for sealing the joints between pipe sections belonging to a 2400 ft,
8-ft diameter storm sewer line. The problem arose when it was observed that the ground surface along
the corridor of the pipeline had large differential settlements. The City Engineers had attributed these
settlements to sand being washed down the pipe through joint openings between pipe sections. Due to
tidal movement, the ground beneath the pipeline settled, resulting in differential settlement of the 30-ft
long pipe sections, breaking the cement mortar that was initially placed between the joints. The list of
TABLE 7.1
Decision Matrix for Sealing Joints
Cost
Ease of
Installation
and Time Durability
Safe
Installation
Safe
Material
Overall
Score Rank
Methods Weights: 2 1 4 2 2
Mechanical fastened
Metal 3 3 3 2 4 33 12
Sieve 3 3 3 2 4 33 12
Rubber/neoprene 3 3 4 2 4 37 3
Field-applied adhesive
Metal 2 3 3 4 4 35 8
Rubber/neoprene 2 3 4 4 4 39 1
Adhesive backing
Metal 3 3 3 4 4 37 3
Rubber/neoprene 3 3 3 4 4 37 3
Spring action
Gasket with metal rods 2 4 3 4 4 36 7
Gasket with lock strip 2 3 3 4 4 35 8
Sealants
General materials 4 3 3 3 4 37 3
Bentonite 4 2 1 3 4 28 17
Gaskets 4 3 3 4 4 39 1
Inflatable tube
Placed within joint 2 3 3 4 4 35 8
Placed over joint 2 4 2 4 4 32 14
Metal spring clip insert 2 3 3 4 4 35 8
Grout
Joint grouting 2 2 3 3 4 32 14
Exterior grouting 1 2 3 4 4 32 14
Note:
Overall score obtained using weights; Scoring based on scale: 1 (poor), 2 (fair), 3 (good), 4 (excellent).
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criteria used to evaluate the performance of the various methods proposed includes cost, safety in
installation, time and ease of installation, durability against further differential settlement of pipeline,
and safe materials. Scoring of the alternatives is based on a simple scale ranging from 1 (poor) to
4 (excellent) for each criterion. The best alternative is the method with the highest overall score.
For more complex value criteria, a value hierarchy (Green, 1992) can be employed to structure the
criteria. The top of the hierarchy comprises the primary objective of the problem. This is progressively
broken down to subcriteria by way of a “means-ends” analysis, where the lower-order criterion is a means
to the immediate higher criterion. Using the above example, a value hierarchy is developed following
similar criteria attributes given in Table 7.1, and depicted as shown in Fig. 7.2. The weighting of each
criterion is first obtained by normalizing the initial score of degree of importance (based on a 10 for the
least important in the group). The final weighting for the lowest-level criterion is computed as the product
of the criterion in the path of the tree to the top. The criteria in the lowest level of each branch with
their final weights are used in the evaluation of the alternatives. The analytical hierarchical procedure
(AHP) can also be adopted to derive the final weightings of the criteria (Saaty, 1980). The AHP approach
has been employed to rank success factors (Chua et al., 1999) and criteria for the selection of design/build
proposals (Paek, Lee, and Napier, 1992).
Development Phase
This is the phase when a limited number of the ranked alternatives are taken forward for development.
The alternatives are designed in greater detail so that a better appraisal of their cost, performance, and
implementation can be made. The cost should be computed based on life-cycle costing. At this stage, it
may be necessary to conduct a trial or prepare a model or prototype to test the concept before recommending
them to the decision makers.
Recommendation Phase
In this phase, a sound proposal is made to management. The effort in this phase can be crucial because
all the good work done thus far could be aborted at this final stage if the proposal is not effectively presented.
The presentation must also include the implementation plan so that management can be fully convinced
that the change can be made effectively and successfully without detriment to the overall project.
FIGURE 7.2
Value hierarchy.
Cost
Installation
Durability
Safety
Effective
Sealant
Ease to install
Time to install
Safe material
Safe installation
Initial
score
20
10
50
40
Normalized
weights
0.17
0.08
0.42
0.33
0.33=40/120
Σ=120
Initial
score
Normalized
weights
20
10
10
10
0.67
0.33
0.5
0.5
Final
weights
0.17
0.054
0.026
0.42
0.165
0.165
0.165=0.5×0.33
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Implementation
Value engineering can be applied at any stage of a project. It must, however, be borne in mind that greater
benefits can be reaped when it is implemented in the earlier stages of the project. Figure 7.3 shows the
drastic decline in cost savings potential over time. In the earlier stages of the project, there are less hard
constraints, so there can be greater flexibility for adopting innovative alternatives. As the project proceeds,
more constraints are added. Then, there is less flexibility for change, and greater costs will have to be
incurred to make the necessary design changes.
Another consideration applies to the level of effort in the program. It is possible to apply VE extensively
to every item in a project, but the amount of effort may not be recompensed in the same measure.
Alternatively, the 20 to 80% rule should direct the VE efforts. The rule is generally also applicable to the
costs of a system or facility, meaning that 20% of the items of a facility contribute to about 80% of its
total costs. By the same token, a large proportion of unnecessary costs is contributed by only a few items.
Thus, the efforts of VE should be directed at these few items to yield significant cost savings.
It is traditional practice that designers adopt without challenge the owner’s requirements and architect’s
specifications as given constraints from which they will begin to optimize their designs. These constraints,
however, can lead to poor cost and value ratios, and if left unchallenged, can lead only to suboptimal
solutions. Similarly, in a process-type facility, the owner’s and process engineer’s specifications typically
form the constraints.
In a project for the construction of a wafer fabrication multistory building, for example, the process
engineer laid out their process plans for the various floors. The sub-fab facilities were arranged so
precariously on one of the floors that the main fabrication area above this level could not be laid out
symmetrically with respect to the building. As customary, this was presented as a constraint to the
structural engineers and vibration consultants (of which the author was a member). The objective of the
design was a waffle floor system that would ensure that the vibration level in the main fabrication area
under ambient conditions would not exceed some extremely low threshold criteria (with velocity limits
not exceeding 6.25 m
m/s over the frequency range 8 to 100 Hz in the 1/3 octave frequency band). With
the original layout, the design would demand some elaborate system of beam girders to take advantage
of the shear walls at the perimeter (because no shear walls are allowed in any area within the perimeter)
and still would suffer from unnecessary torsional rotation due to the eccentricity of the floor system. It
was only after several deliberations that the process engineers finally agreed to modify their layout so
that a symmetric design could be accommodated. This resulted in significant savings in terms of construction
costs and improved vibration performance. It is common that the initial specifications conflict
with basic function of the design, which in this case, is a vibration consideration, leading to poor and
expensive solutions, if left unchallenged.
FIGURE 7.3
Cost savings potential over project duration.
Savings
potential
Cost to
change
Concept Development Detail
Design
Construction Start-up
& Use
Cost of late changes
Influence on total
Project life cycle
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Another consideration stems from the need to generate alternatives — the selection of the value
engineering team. Just as the extent of solutions can be curtailed if some poorly defined constraints are
left unchallenged, the scope of alternatives can also be severely limited if the value engineering team
comprise only the same designers of the system. These designers become so intimate with their designs
that they fail to detect areas of unnecessary costs. The approach is to form a multidiscipline team that
cuts across the technical areas of the study, comprising one or two members in the major discipline with
the others in related fields. In this way, the alternatives tend to be wider ranging and not limited by the
experience of a single group. Greater consideration can also be given to the impact of these alternatives
on the system as a whole.
As with any program, the VE program has to be well managed with the support of top management
in all practical ways. Visible support will entail their presence in many of the review meetings of VE
projects, their support with the necessary budget and staff training and participation, and their time to
discuss problems associated with the program and implementation of the alternatives. In the construction
industry, it is usual to place the VE group with the purchase or design function of the organization.
The success of the VE program also largely depends on the leader of the VE group. Depending on the
size of the program and the organization, he could be the Director VE, Value Manager, or simply the Value
Engineer. Nevertheless, he must be able to follow organizational culture to gain acceptance of management
and colleagues, yet has to have the necessary qualities to bring about changes for the better. His ability to
control the dynamics of the group is important if he is to initiate and direct the program successfully.
There are three other important considerations to initiate a successful VE program:
• Bring about an awareness of VE concepts and methodology within the organization.
• Select simple sure winner projects as starters.
• Audit and publish the project after successful implementation with respect to both technical
advantages and monetary savings.
7.3 Constructability
Basic Concepts
There are various definitions of the concept of constructability. The definition offered by the Construction
Industry Institute has been adopted because of its broad perspective and its emphasis on the importance
of construction input to all phases of a project (Jortberg, 1984):
“
…the optimum integration of construction
knowledge and experience in planning, engineering, procurement, and field operations to achieve overall
project objectives
.”
Constructability is not merely a construction review of completed drawings to ensure that they do
not contain ambiguities or conflicts in specifications and details that will present construction difficulties
later during the execution phase. It is also not merely making construction methods more efficient after
the project has been mobilized.
Instead, the concept of constructability arises from the recognition that construction is not merely a
production function that is separated from engineering design, but their integration can result in significant
savings and better project performance. Construction input in design can resolve many designrelated
difficulties during construction, such as those arising from access restrictions and incompatible
design and construction schedules. Construction input includes knowledge of local factors and site
conditions that can influence the choice of construction method and, in turn, the design. The benefits
of early construction involvement are at least 10 to 20 times the costs (BRT, 1982), and more recently, a
study has shown that savings of 30 to 40% in the total installed cost for facilities are readily achievable
from constructability implementation (Jergeas and Van der Put, 2001). The effects of an engineering bias
to the neglect of construction input are discussed by Kerridge (1993).
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The integration of construction knowledge and experience should come on to the project as early as
possible when the cost influence of decisions in the early phases is very high (whose trend follows the curve
of influencing total value depicted in Fig. 7.3). The highest ability to influence cost comes at the conceptual
phase, where the decisions at that time could greatly affect the project plan, site layout and accessibility, and
the choice of construction methods. Full integration will require that the contractor or construction representative
be brought into the project team at the same time as the designer. Thus, the choice of the
contractual approach can be critical in determining early construction involvement in a project.
Another important consideration for meaningful construction input to design is the commitment to
preconstruction planning. Preconstruction planning determines three important elements affecting
design and plan sequence:
• Selecting construction method and sequence so that designers can incorporate them in their design
• Ensuring that the design is constructible with at least one feasible way to execute the work
• Assuring that all necessary resources will be available when required, including accessibility,
construction space, and information
Some of the pertinent concepts applicable to each phase of the project cycle are briefly presented in
the following.
Conceptual Planning
The key issues in this phase relate to evaluating construction implications to project objectives, developing
a project work plan, site layout, and selecting major construction methods (Tantum, 1987).
Construction-related issues at this stage can have major impacts on budget and schedule. The project
objectives must be clearly established so that alternatives in various decisions can be effectively evaluated.
The implications from the construction perspective may not be readily apparent to the planning team,
unless there is a member experienced in field construction.
An effective work plan requires that work be adequately packaged and programmed so that design
information and essential resources and materials required for each package can arrive in a timely fashion.
Without construction input, the packaging and availability of design may not allow desirable work
packaging or construction sequence. Moreover, the problems or opportunities from local factors and site
conditions may be missed. Construction knowledge is also necessary for developing a feasible schedule.
It is usual for the building and site layouts to be determined solely on plant, process, and business
objectives. Too often, construction implications are not considered with resulting severe limitations on
construction efficiency due to inadequate space for laydown areas, limited access, and restrictions on
choice of construction methods.
Construction knowledge is essential in the selection of major construction methods that will influence
the design concepts. The possibility of modularization and the degree of prefabrication, for example, are
construction issues that must be considered in this early stage.
Engineering and Procurement
The following are some key ideas that are generally applicable for guiding the constructability initiatives
during the engineering and procurement phase of the project. With respect to design per se, the general
principle is to provide design configurations and concepts that reduce the tasks on site, increase task
repeatability, and incorporate accessibility.
•
Construction-driven design and procurement schedules —
Design and procurement activities
are scheduled so that detailed designs, shop drawings, and supplies are available when needed
according to construction schedule. This will reduce unnecessary delays in the field caused by
resource and information unavailability.
•
Simplified designs —
Simplified design configurations generally contribute to efficient construction.
Such designs can be achieved using minimal parts or components, simplifying tasks for
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execution, and minimizing construction task dependencies. Boyce (1994) presented some interesting
principles in this aspect of designing for constructability.
•
Standardization —
The objective in standardization is to reduce the number of variations in the
design elements. This will lead to fewer errors in the field, improved productivity through repetitive
work, and advantages in managing the supply chain of fewer differing components.
•
Modularization and Preassembly —
These will simplify field operations because the large number
of parts have been modularized or preassembled, and are usually under conditions that can provide
better control. Focus instead is given to delivery, lifting, and assembly in the field.
•
Accessibility —
Detailed design should consider the accessibility of workmen, material, and
equipment. An accessibility checklist may be useful for this. Computerized simulation CAD models
are also used in this regard.
A more detailed list including specifications and designing for adverse weather conditions is obtainable
from O’Connor, Rusch, and Schulz (1987).
Field Operations
There are constructability issues remaining during field operations. These pertain to task sequencing and
improving construction efficiency and effectiveness. Contractors can still reap the benefits of constructability,
which can be quite substantial if the decisions are taken collectively. Innovation has been singled as the key
concept for enhancing constructability in this phase and is applicable to field tasks sequence, temporary
construction systems, use of hand tools, and construction equipment (O’Connor and Davis, 1988).
Many innovations have been made in the use of temporary construction systems, use of hand tools,
and construction equipment. The advantages have been obvious: reduced erection and setup times,
improved quality in products delivered, and increased construction productivity in related tasks. Many
construction problems on site can be resolved quite easily with proper task sequences. Tasks can be better
sequenced to minimize work site congestion with its consequent disruptions of work. Unnecessary delays
can be avoided if tasks are properly sequenced to ensure that all prerequisites for a task are available
before commencement. Effective sequencing can also take advantage of repetitive tasks that follow each
other for learning-curve benefits. Sharing of equipment and systems is also an important consideration
in tasks sequencing.
Implementation
As in all value methods, to be effective, constructability has to be implemented as a program in the
organization and not on an ad-hoc basis. In this program, the construction discipline, represented by
constructability members, becomes an integral part of the project team and fully participates in all design
planning decisions.
A special publication prepared by the Construction Industry Institute Constructability Implementation
Task Force (CII, 1993) presented a clear step-by-step roadmap to provide guidance for implementing
the constructability program at the corporate and project levels. There are altogether six milestones
envisaged, namely:
• Commitment to implementing the constructability program
• Establishing a corporate constructability program
• Obtaining constructability capabilities
• Planning constructability implementation
• Implementing constructability
• Updating the corporate program
Alternatively, Anderson et al. (2000) employed a process approach based on IDEF0 function modeling
to provide the framework for constructability input.
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Although there cannot be a single unique constructability program that can suit all companies,
invariably, the commitment to a constructability program must come from senior management and be
communicated clearly through the organization. Successful and consistent implementation also requires
a single point executive sponsor of the program, whose primary role is to promote its awareness and to
be accountable for its success.
Another important consideration in the program is to adopt a forward integration planning approach,
rather than a backward constructability review of fully or partially completed designs. In the latter
approach, the constructability team is excluded from the design planning process, thus preventing early
construction input integration. Any changes to be made after the review will usually be taken in an
adversarial perspective, in which the designer becomes defensive and takes them to be criticisms. Moreover,
the design reworks are unnecessary and make the process inefficient and ineffective. In the forward
integration as shown in Fig. 7.4, the constructability concepts are analyzed at each planning phase, and
the alternatives from the construction, business, and design perspectives are available up-front and are
jointly evaluated before incorporation into the design. The outcome is obvious: improved design quality
and reduced design reworks.
As depicted in Fig. 7.4, the constructability activities can be guided from three sources: corporate
lessons-learned file, team discussions of constructability concepts, and constructability suggestions. The
first contains the feedback on the constructability program documenting specific lessons learned along
the way. When the project terminates, each functional design should be evaluated and added to the
lessons-learned file. The discussions of constructability concepts can be guided by a checklist of the
constructability concepts at each phase or by using a Constructability Applications Matrix (see Fig. 7.5)
(Tools 16–19, CII, 1993). More ideas for constructability can also be obtained from suggestions by other
personnel involved in the project.
The project constructability team leads the constructability effort at the project level. The constructability
team comprises the usual project team members and additional construction experts. If the
contractor has not been appointed, an appropriate expertise with field experience has to be provided.
The specialists, for example, rigging, HVAC, electrical, and instrumentation, are only referred to on an
ad-hoc basis, when their area of expertise is needed for input. A constructability coordinator is also
needed, whose role is to coordinate with the corporate constructability structure and program.
Before concluding this section on constructability, it is important to realize that constructability is a
complex process, and the constructability process itself is unstructured. Especially, in these days of highspeed
computing, technology has provided assistance in conducting this process, and its development
FIGURE 7.4
Constructability integration with activity.
Design/field
activity
Suggestions from
other project
members
Construction
Input
Corporate
lessonslearned
file
Constructability
concepts from
constructability
team
Checklist
Application matrix
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should be closely followed so that it can be incorporated to enhance its effectiveness. Four-dimensional
models (McKinny and Fischer, 1997), that is, three-dimensional CAD models with animation, are providing
the visualization capabilities to enhance communication between the designers and the constructors.
Other models have also been developed for various aspects of constructability, for example, a
constructability review of merged schedules checking for construction space, information, and resource
availability (Chua and Song, 2001), and a logical scheduler from the workspace perspective (Thabet and
Beliveau, 1994).
7.4 Quality Management
Basic Concepts
It cannot be overemphasized that quality is an objective of project management that is equally important
to project budget and schedule. Specifications are written into contracts to ensure that the owner gets
from the main contractor a product with the type of quality he envisaged. Being able to deliver this is
not something that can be left to chance. It will require management. Quality management is the process
to use to consistently satisfy the owner’s expectations. Quality management has been defined as follows:
“
All activities of the overall management function that determine the quality policy, objectives and responsibilities,
and implement them by means such as quality planning, quality control, quality assurance, and
quality improvement within the quality system”
ISO 8402 (1995).
Quality management has progressed through four stages, beginning with inspection and quality control
(QC), and has now arrived at quality assurance (QA) and total quality management (TQM) (Dale et al.,
1994). Inspection is the activity that assesses by measurement or testing whether an element has conformed
to specifications. Corrective work is then ordered to rectify any nonconformance in the element.
QC builds upon the inspection efforts and relies largely on statistical techniques to determine trends and
detect problems in the processes. Such techniques are being used routinely in manufacturing. With respect
to the construction industry, concrete cube testing is one rare example. Instead of merely detecting the
errors for remedial measures, QA and TQM are based on a quality system, with the objective of reducing
and ultimately eliminating their occurrences.
Both QA and TQM are focused on meeting customer requirements, and this is at the top of the agenda.
Customer in TQM does not necessarily refer only to the owner, as QA tends to imply. The customer
perspective in TQM is derived from the process viewpoint. At every stage of a process, there are internal
customers. They belong to the group of people who receive some intermediate products from another
group. For example, in an on-site precast operation depicted in Fig. 7.6, the crew setting up the mold
FIGURE 7.5
Constructability applications matrix.
Key Activities in
________ Phase
Constructability
Concepts
Id.
No. Description
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
Activity 7
Activity 8
Activity 9
Activity 10
1 Concept 1
2 Concept 2
3 Concept 3
4 Concept 4
5 Concept 5
6 Concept 6
7 Concept 7
8 Concept 8
Shaded cells in matrix indicate inapplicable concepts
© 2003 by CRC Press LLC
7
-12
The Civil Engineering Handbook, Second Edition
for casting receives the steel reinforcement assembly from the crew assembling the steel cage. The mold
crew is the internal customer of the assembly process. In turn, the casting crew is the internal customer
of the mold assembly process, while the Land Transport Authority is the external customer of casting.
Each of these crews will require that the intermediate product they receive meets the quality standards
to avoid rework. The concept of internal customers ensures that quality permeates through the total
operation, and thus by addressing the internal processes in this way, total quality improvement can be
achieved.
To ensure that customers get what they want, there is a need to fully understand their requirements
and to communicate this throughout the organization. This is at the heart of quality management and
is the goal of the quality system. The quality system comprises quality manuals providing the templates
to guide the worker in the performance of each particular task. These templates ensure management that
proper work has been performed and provide confirmation to the owner that the work has met his
requirements. The core of these systems is to present a way of working that either prevents problems
arising, or if they do arise, identifies and rectifies them effectively and cheaply. In the next section, an
overview of the ISO 9000 quality system will be presented.
Another culture of quality management is the dedication to continual improvement. Such a commitment
requires accurate measurement and analysis of the performance of the processes from the viewpoint
of the customer. This can take the form of a trend chart showing the trend of the problem. Control charts
are also useful to highlight out-of-control conditions. A flowchart or process flow diagram will put the
problem in the perspective of the whole operation. Histograms, scatter diagrams, and pareto analysis are
other tools that may be used to identify and present the problem. Mears (1995) gave a good account of
these and other techniques that have been used for quality improvement. The problem has to be analyzed
to identify the root cause. A common and useful technique is the fishbone diagram, also called the causeand-
effect diagram. This and some other improvement techniques will be presented later. The action
plan and monitoring of the implementation are the other two steps to complete the improvement process
as shown in Fig. 7.7. The action plan describes the action to be taken, assigning responsibility and time
lines. Monitoring would confirm that the conditions have improved.
FIGURE 7.6
On-site precast operation.
Internal customer:
Casting crew
Select
Bars
Arrange
Bars
Tie Bars
Measure
Wash
Mould
Apply
Oil
Insert
Cage
Adjust
Bars
Adjust
Mould
Measure Survey Prepare
Top Deck
Seal Gap
Dismantle Cast
Steel Cage
Assembly
Mould
Assembly
Internal customer:
Mould assembly crew
Segment
Casting
External customer:
Land Transport
Authority
© 2003 by CRC Press LLC
Value Improvement Methods
7
-13
Quality System
Underlying the concept of quality management is a quality system. It is becoming increasingly common
for the ISO 9000 Standards certification to be necessary for tendering in big projects. The Standards
provide the framework for developing the quality system. They comprise four main parts:
•
ISO 9001
— Specifications for design/development, production, installation, and servicing
•
ISO 9002
— Specifications for production and installation
•
ISO 9003 —
Specifications for final inspection and test
•
ISO 9004 Parts 1–4
— Quality management and quality systems elements
A company will decide on a suitable form appropriate for its operations and develop its quality system
accordingly. ISO 9002 excludes design and is the most appropriate choice for controlling the operations
of a contractor. This is also adequate to cover design and build projects, provided that the design is
bought-in. ISO 9001 carries an additional clause 4.4 to control design activities and is necessary for a
company that carries out design work.
The standards only provide the key elements in a quality system. Evidently, there can be no standardized
quality system because the specific choice of quality measures depends on factors such as the main fields
of activity, the operational procedures, and the size and structure of the company. Nevertheless, there is
a hierarchy of documents making up the quality system (see Fig. 7.8). The quality manual according to
Part 1 of ISO 9004 defines an outline structure of the quality system and serves as a permanent reference
in the implementation and maintenance of the system. This is supported by the procedures and instructions
common to the whole organization at the company level. There are also quality documentation
comprising forms and checklists, procedures, and work instructions that are more project specific, in
order to operate effectively in the unique circumstances of the project.
There are 20 main clauses in the ISO 9000 Standards (see Table 7.2). A brief synopsis of some of the
pertinent clauses follows.
Clause 4.1 Management Responsibility
The implementation of a quality system requires a strong commitment of senior management and clear
communication to every member in the organization. This clause relates to quality policy, organization
structure defining responsibilities, authority and action to be carried out, management review, and
FIGURE 7.7
Quality improvement process.
Measure
Analyze
Action Plan
Implement
and monitor
Identify and present problem
Examples: Control charts
Histograms
Scatter diagrams
Pareto analysis
Identify root cause
Examples: Cause-and-effect diagrams
Quality function deployment
Customer needs mapping
Assign responsibilities
Establish time lines
Confirm conditions have improved
© 2003 by CRC Press LLC
7-14 The Civil Engineering Handbook, Second Edition
management representatives. Review is necessary to ensure the integrity of the system and continual
improvement.
Clause 4.2 Quality System
This clause refers to the setup and maintenance of the quality system. It describes the implementation
of a quality manual and the documentation necessary to operate the system. Quality planning is also a
requirement in the clause, demonstrating how the system will be implemented and consistently applied.
It also comprises the quality plans that set out the required good quality practices according to the specific
requirements of the contract.
Clause 4.3 Contract Review
Contract review is the process to review the client’s requirements. It ensures that they are adequately
defined and understood, and any ambiguities or contradictions are resolved. It also looks at the resources
FIGURE 7.8 Hierarchy of documents in quality system.
TABLE 7.2 Main Clauses in ISO 9000 Standards
Clause Requirement
4.1 Management responsibility
4.2 Quality system
4.3 Contract review
4.4 Design control
4.5 Document and data control
4.6 Purchasing
4.7 Control of customer-supplied product
4.8 Product identification and traceability
4.9 Process control
4.10 Inspection and testing
4.11 Control of inspection, measuring, and test equipment
4.12 Inspection and test status
4.13 Control of nonconforming product
4.14 Corrective and preventive action
4.15 Handling, storage, packaging, preservation, and delivery
4.16 Control of quality records
4.17 Internal quality audits
4.18 Training
4.19 Servicing
4.20 Statistical techniques
Project level quality
documentation: checklists,
forms, procedures and work
instructions
Quality
manual
Project
provisions
(customisable)
Corporate
procedures and
work instructions
Organization level
provisions
(“permanent”)
© 2003 by CRC Press LLC
Value Improvement Methods 7-15
available to ensure that the organization can fulfill the requirements. This clause also includes a documentation
of the results of the process.
Clause 4.4 Design Control
This clause has the most elements and deals with the design activity. Design and development planning,
and organization and technical interfaces relate to the resources and organizational aspects of the design
process. The input and output elements deal with compliance with customer and statutory requirements
and mode of output. The remaining elements relate to the management of the design, comprising design
review, verification, and validation, to ensure that the design actually meets requirements and original
intention, and design changes, ensuring that revisions are adequately communicated and versions are
adequately recorded.
Clause 4.5 Document and Data Control
This clause relates to the control of all documents, including external documentation such as codes of
practices, health and safety legislation, building regulations and manufacturers’ guidelines, and data
contained in computer systems. The procedures ensure that the proper documents would be used, that
there would be uniform documentation, and that revisions and obsolete documents would be properly
handled.
Clause 4.6 Purchasing
The objective is to ensure that all bought-in resources comply with customer’s requirements and that
those providing them, i.e., subcontractors and suppliers, are competent. The clause covers the evaluation
of subcontractors and suppliers, standardization and specification of purchasing data, and verification
of the purchased product. Related procedures must also be in place to ensure that customer (client)
supplied services or products, including information, also comply with quality standards (Clause 4.7).
There are related procedures controlling product identification by marking or by accompanying documentation
(Clause 4.8).
The remaining clauses deal with process control, inspection and testing matters, handling and storage
issues, quality records, audits, training, servicing, and statistical techniques. The servicing clause deals
with after-sales service and may not be appropriate in every construction company.
Quality Improvement Techniques
Mistakes and problems that arise provide opportunities for learning and continual improvement. There
are numerous tools that have been used in this context. These range from simple checklists, flowcharts,
scatter diagrams, and pareto analysis, to fishbone diagrams and more sophisticated tools such as benchmarking,
customer needs mapping, and quality functional deployment (QFD). Essentially, they collect
data so that the problem can be identified and aid in finding the cause and developing solutions to improve
the situation. In this section, only the fishbone diagram, customer needs mapping, and QFD will be briefly
presented. The reader may refer to Mears (1995) and McCabe (1988) for other techniques available.
Fishbone Diagram
The fishbone diagram was first developed by Karou Ishikawa. Essentially, it is a cause and effect analysis
used to identify the root causes of a particular problem. The final diagram resembles the skeleton of a
fish as shown in Fig. 7.9, where the head is the effect or problem, and the minor spines lead to the main
areas or processes that could contribute to the effect. The ribs on the minor spines are the causes within
the main areas and can make up a chain of causes. The last rib in the chain is the fundamental root cause
that is specific enough to take action on.
Cause and effect analysis is usually used in a brainstorming setting, in which all members of the group
should be familiar with the nature of the problem. The analysis begins with a clear definition of the
problem, defining its symptom or effect. The effect forms the “fish head” of the diagram. The possible
causes are identified, and the main areas for the minor spines are derived by classifying them into natural
© 2003 by CRC Press LLC
7-16 The Civil Engineering Handbook, Second Edition
groupings or major processes. Figure 7.10 shows the resulting fishbone diagram for improving the human
factor element of safety performance in the construction industry obtained in a safety workshop conducted
with the participation of leading companies, professional societies, and associations. The major
areas have been grouped according to the major project players. In the case of process-related problems,
the major groupings can usually be categorized according to resource and methods, such as tools,
components, production methods, people, and environment. In larger operations, the groupings could
include the major processes making up the whole operation.
The major categories are then refined to determine the root causes. This can be assisted by asking the
following questions:
• What causes this?
• Why does this condition exist?
The “why” question may be asked several times, until the causes are specific enough for action to be
taken. A plan of action is then formulated based on the root causes that have been uncovered according
to a priority ranking system.
Customer Needs Mapping
Customer needs mapping is a technique that analyzes the effectiveness of the internal processes to meet
customer requirements (or needs). It is based on a matrix approach, as shown in Fig. 7.11. The customer
in the analysis could be an internal customer, especially in the case of support activities such as inventory
control and the IT department. After the customers have been identified, their needs may be determined
FIGURE 7.9 Fishbone diagram layout.
FIGURE 7.10 Fishbone of safety performance (human factors).
Effect
Main Area 4 Main Area 2
Main Area 3 Main Area 1
Subarea 3a
Subarea 3b
Chain of causes
Competitiveness -
Safety
Performance
(Human factors)
Workers
Contractors
Professional
Employer Owners
Lack of welfare -
Working conditions
Skill & knowledge
Competitiveness -
Competency
Communication -
Attitude -
Time -
Proper tools -
Poor safety design -
Low buildability -
Communication -
Planning restriction -
Coordination -
Poor responsibility demarcation -
No accountability -
Different priorities -
Exploitation -
High turnover/churning -
Job continuum
© 2003 by CRC Press LLC
Value Improvement Methods 7-17
through a combination of customer interviews and brainstorming. The left-hand column of the matrix
makes up the customer needs. An importance rating on a scale of 1 (least important) to 5 (most
important) is assigned to each item.
The top row of the matrix identifies the internal processes required to meet these needs. Only the
major processes are necessary so as not to be bogged down by the details of a complex operation. To
complete the matrix, the effectiveness of each process in meeting customer needs is evaluated. The
evaluation is obtained through customer interviews and is based on the following scale: high (H),
medium (M), and low (L).
With this mapping, the quality improvement team can now identify internal processes that need to
be enhanced to improve quality delivery. A customer need with high importance is one point of focus.
An internal process that is not effective in meeting any customer needs should also draw attention, for
example, internal process 3 of Fig. 7.11. Another benefit of the mapping is the identification of customer
requirements that have been neglected, such as customer need 2.1 of Fig. 7.11. A detailed flowchart of
the whole operation usually accompanies the mapping so that improvement plans can be developed as
a result of the analysis.
Quality Function Deployment
Quality function deployment (QFD) is a structured approach to translating customer requirements into
appropriate technical requirements so that customers’ needs can be better satisfied. It was first introduced
at the Kobe shipyards of Mitsubishi Heavy Industries Ltd. in 1972. Since then, it has gone through several
stages of development and has been used in various applications, not only in manufacturing, but also
in the AEC industry.
QFD uses a matrix structure in the form of the house of quality (see Fig. 7.12), so called because of its
resemblance to a house. The customers’ needs are the inputs to the matrix, and the outputs help to set
competitive targets and determine the priority action issues for improving customer satisfaction based on
their requirements (Day, 1993). The house of quality comprises six main sections, as shown in Table 7.3.
The product characteristics or processes are the technical counterparts that must be deployed to meet
customer requirements. These technical counterparts are often related, and their interactions are shown
using symbols as shown in Fig. 7.12. The relationship matrix is the main matrix of the house. It shows
the relationship between the customer requirements and the technical counterparts. Symbols as shown
in the figure are also used to indicate the strength of their relationships. The customer requirements are
FIGURE 7.11 Customer needs mapping.
Importance Rating
Process 1
Process 2
Process 3
Process 4
Customer needs
Main group 1 Need 1.1 5 M
M
L
M
L
H
L
L H
Need 1.2 3 M M
Need 1.3 2 H M
Need 1.4 4 L
L
H
Main group 2 Need 2.1 4
Need 2.2 1 L M
Need 2.3 5 M
L
L
L
L
L L
L
L H
© 2003 by CRC Press LLC
7-18 The Civil Engineering Handbook, Second Edition
ranked to give their importance values. It is usual to denote their importance on a 5-point scale (where
5 represents the highest importance). Alternatively, the analytical hierarchical approach (AHP) referred
to in the earlier section on value engineering can be used to rank their importance (Akao, 1990). This
section of the house of quality also comprises the competitive evaluation of competitors to highlight
their strengths and weaknesses to meet their customer needs.
If a numerical score is given to the relationship matrix, the technical rankings (or process importance
weights) can be derived as shown in Fig. 7.13 for the case of improving the quality of mold assembly
operation in an on-site precast yard. The rankings show the importance of the internal processes in
achieving the quality of the finished mold for the casting crew, an internal customer of the whole precast
operation. The house of quality can be modified by incorporating an improvement ratio as shown in
Fig. 7.14 for the same example, which is the ratio of the planned level and current rating of the customer
requirement. The technical rankings obtained in this way would have taken into consideration the current
deficiencies in the technical counterparts in meeting the customer requirement.
Implementation
Developing a Quality System
The quality system is an essential aspect of the concept of quality management. The development process
is not merely a compilation of forms and documents of procedures and organization, and the amount
FIGURE 7.12 House of quality.
TABLE 7.3 Main Sections of House of Quality
Section Description
1 Customer requirements for the product
2 Ranking and rating of customer requirements
3 Product characteristics or processes (technical counterparts)
4 Relationship matrix between customer and technical counterparts
5 Correlation matrix showing technical interactions — this forms the roof of the house
6 Technical rankings and ratings
Process Interactions
very strong
strong
weak
negative
internal process 1
internal process 2
internal process 3
internal process 4
internal process 5
internal process 6
internal process 7
internal process 8
internal process 9
internal process 10
importance ranking
competitive evaluation
requirement 1
requirement 2
requirement 3
requirement 4
requirement 5
requirement 6
requirement 7
process importance
weight Requirement-process relationships
competitive evaluation A very strong
competitive evaluation B strong
Targets weak
Deployment
5
2
3
1 4
6
© 2003 by CRC Press LLC
Value Improvement Methods 7-19
of effort required cannot be underestimated. It is not the work of an individual appointed from within
the organization, in addition to their other duties, as is frequently done. The process can become too
long drawn, with the accompanying consequence of loss of impetus or of even having the whole process
stalled. Otherwise, there may be a compromise on the depth of coverage, resulting in an ineffective system.
It is insufficient to develop the system. Full implementation, as shown in Fig. 7.15, begins with the
analysis phase, which is essentially a critical review of the company in terms of its existing organization
FIGURE 7.13 House of quality for mold assembly.
FIGURE 7.14 Modified ratings with improvement ratio.
wash
apply mould oil
measure
survey
insert cage
adjust steel bars
adjust mould
seal gap
prepare top deck
degree of importance
ready on time 3.5
enough mould oil 7.1
correct alignment 35.3
gaps covered 4.4
correct cage 35.3 Points
enough cover 5.8 9
clean 5.2 3
correct cas-in item 3.3 1
process importance
weight
58
83
329
350
359
195
377
40
169
process relative
weight 3 4 17 18 18 10 19 2 9
3x3.5+9x5.2
normalized to total of 100
weights from HP
normalized to 100
degree of importance
current rating
planned level
improvement ratio
attribute importance
weight
attribute relative weight
ready on time 3.5 4 3 0.75 2.6 3.2
enough mould oil 7.1 4 4 1 7.1 8.5
correct alignment 35.3 5 4 0.8 28.2 33.9
gaps covered 4.4 3 3 1 4.4 5.3
correct cage 35.3 5 4 0.8 28.2 33.9
enough cover 5.8 4 4 1 5.8 7.0
clean 5.2 5 4 0.8 4.2 5.0
correct cas-in item 3.3 5 4 0.8 2.6 3.2
83.2
sum of importance weights
normalized to total 100
and used to obtain technical rankings
© 2003 by CRC Press LLC
7-20 The Civil Engineering Handbook, Second Edition
and procedures. After development, the system has to be tested before it can be implemented, and auditing
is required to maintain the system. Of these phases, the analysis is perhaps most crucial in determining
the success of the quality system. Typically, the analysis will reveal deficiencies in the present organization
that need to be redressed, such as procedures being ignored or modified for a variety of reasons and
contradictory and outdated procedures. Information is gathered through a combination of interviews,
questionnaires, review of existing forms and documents, and observation. Effective control can be
formulated only if there is sufficient depth in the analysis.
Successful implementation also entails a balance of the need for knowledge of quality management
and an understanding of the organization and processes. The use of QA consultants fulfills the first
requirement but falls short of the need for company knowledge. A QA manager appointed from within
the company’s management should lead the implementation, and a combination of self-analysis by
departments and by external QA consultants should provide the advantages of expertise and company
knowledge to ensure success.
Developing a Quality Culture
The other aspect of successful implementation is developing a quality culture in which everyone is
encouraged to be concerned with delivering quality in his or her own work. Instead of merely adopting
the quality system as the way things should be done, the quality system will have to become the way
things are actually done. Because it requires things to be done differently, a clear and strong commitment
from senior management is not an option. Though it starts from the top, this quality culture must be
communicated to the worker level.
One way of developing this, is to set up a quality council, which is essentially an executive or steering
committee dedicated to maintaining the organization’s focus on quality management. It also provides
the mechanism for selecting quality improvement projects for developing, forming, and assisting the
quality teams, and following up on their implementation. Without such a structure, good improvement
ideas suggested by workers, which goes beyond a single department, are usually not followed through
because of the lack of authority. Typically, the council is headed by a senior VP of the organization.
Another necessary change is realizing employee participation because such quality initiatives may
require the workers to change the way things are done. They must believe that the improvement is good
and must also be motivated to put in their best (and thus quality) in their tasks, with the attitude of
FIGURE 7.15 Implementation cycle of quality system.
Analysis
Development
Testing
Audit
Critical review of
existing
organization and
procedures
Identify activities
to be controlled,
and develop
means of control
and system
manual Dissemination,
training,
familiarization
and test in use
Maintain and
improve system
© 2003 by CRC Press LLC
Value Improvement Methods 7-21
doing things right the first time. Along with this is the concept of employee empowerment. Empowerment
has been defined as the method by which employees are encouraged to “take personal responsibility for
improving the way they do their jobs and contribute to the organisation goals” (Clutterbuck, 1994).
Clutterbuck also suggested some techniques for empowerment. They relate to expanding employees’
knowledge-base and scope of discretion, involving them in policy making, and providing opportunities
to change systems that can affect procedures across functional lines and departments. Employee empowerment
is an important key to continuous improvement because they are most involved in line operations
and would be most familiar with problems. Quality circles (Lillrank and Kano, 1989) center on the line
workers whose day-to-day observation of the process is crucial to continuous improvement.
7.5 Conclusions
Three concepts for value improvement have been presented together with their methodologies and
implementation. There are overlaps in their objectives, but their approaches are distinct. Nevertheless,
to achieve any significant success, the implementation of any of these concepts must be strongly supported
by senior management of the organization and communicated through the organization. Moreover, they
cannot be practiced on an ad-hoc basis. A corporate program with clear policies has to be developed,
wherein employee activities are integrated into the other activities of the organization. It has been
demonstrated that the application of these concepts will lead to great benefits to the organization, such
as reduced costs, increased value, better designs, improved performance, and enhanced quality.
Before concluding this chapter, there should be a brief mention of lean construction, which is an
emerging concept also focused on value improvement. The concepts of lean construction are applicable
to design and field operations and are based on the new production philosophy in manufacturing that
has been called by various terms, such as lean production, just-in-time (JIT), and world class manufacturing.
It is believed that just as the new production philosophy has made significant impact on production
effectiveness and has led to dramatic changes in production management in manufacturing, lean
construction can have similar effects in the construction industry.
The new production philosophy originated from plant floor developments initiated by Ohno and
Shingo at the Toyota car factories in Japan in the 1950s, but only analyzed and explained in detail in the
1980s. It was only in 1992 that the possibility of applying this new production philosophy in construction
was mooted and put into a report (Koskela, 1992). Since then, the application of this philosophy in
construction has been termed lean construction. Many of the concepts are still in their germination
stages, but they are generally based on adopting a flow production view of construction instead of the
traditional activities perspective. By focusing on the flow of production, the nonvalue activities can be
identified and minimized, while the value adding activities can be enhanced (Koskela, 1992). One key
concept is improving work plan reliability, or conversely reduced variability, through production shielding
using the Last Planner system (Ballard and Howell, 1998). The Integrated Production Scheduler (IPS)
(Chua and Shen, 2002) is an Internet-enabled system for collaborative scheduling that implements the
Last Planner concept and identifies key constraints in the work plan. Some other related principles for
flow process design and improvement include reduce cycle times, increase process transparency, and task
simplification. The implementation of lean construction will also require a re-look at the relationships
to be cultivated between the main contractor and their suppliers and subcontractors.
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Further Information
Value Engineering
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