Lean Construction and Value
Engineering for Construction
Value
Cost value
Use value
Esteem value
Exchange value
Function
Purpose achieved desired by customer
Use
Sell
Mathematical function
Function identification
Step 1
What do it do?
Step 2
Select the basic and remaining as secondary
Step 3
Dismantle the product
Step 4
Identify the function of each
Step 5
Repeat 3 and 4 till the product is dismantled to basic
components
Cost
Cost and price
Cost
Direct labour
Direct materials
Overheads
Market decides price
Affordability of customer
Elements of cost
Direct materials
Proportional to volume of products
Raw materials
Tools
Packaging
Direct labor
Cost of hours spent
Directly proportional to volume of product
Elements of cost
Direct Expenses
Expenses for production
No linear relation with volume of production
Design cost
Travelling expenses for connection product
Manufacturing cost of main machinery
Overheads
Production overhead
Indirect materials
Consumable stores, regular tools, cutting oils, etc
Transportation expenses within plant
Depreciation of plant and machinery
Administrative overheads
Cost of administration, planning, finance,
personnel, Training and Development
Overheads
Selling overhead
Indirect materials
Consumable stores, regular tools, cutting oils, etc
Transportation expenses within plant
Depreciation of plant and machinery
Administrative overheads
Cost of administration, planning, finance, personnel, Training
and Development
Selling Overheads
Distribution Overheads
Function cost
Cost associated with the function it serves
Cost of function of the component
Multiple function by the same component
Cost allocated to each product
Value engineering is
System oriented
Multi disciplinary
Life cycle oriented
Function oriented
Proven techniques
Poor value
Lack of time
Lack of information
Lack of idea
Misconception
Temporary circumstances that inadvertently become permanent
Habits
Attitude
Politics
Lack of fees
Value engineering
Systematized approach to seek best
functionality, cost, performance and reliability
Job plan
Most economical combination of function to achieve
the task
Job plan
Identify key areas of unnecessary cost
New and creative way for performing
Proven effective
Analyze more than standard design
Job plan
Organized approach
Long time spent if unorganized
Forces a concise description of purpose
Define the requirements and assess true function
Identifies high cost areas
Think more than normal habit solution
Objective approach
Life cycle costing of the project
High cost saving factors to be identified
Universal approach
5 Phase Job Plan
Information Phase
Creative Phase
Judgement Phase
Development Phase
Recommendation Phase
Information phase
Defining the project
Value Chain
set of activities firm operating in a specific
industry performs in order to deliver a
valuable product or service for the market
Flow
Parts flow through a Value Stream
Upstream is the beginning or head of the flow
Downstream is the mouth of the flow, where the
part is pulled by the customer
Materials and parts are the parts in
manufacturing
Customers needs are the parts in service industry
Same for administration
Pull
It has become a matter of course for customers,
or users, each with a different value system, to
stand in the frontline of the marketplace and, so
to speak, pull the goods they need, in the
amount and at the time they need them.
Taiichi Ohno, Toyota Production System
Nothing is produced by the upstream
provider until the downstream customer signals
a need
Womack and Jones, Lean Thinking
Perfection
The complete elimination of all waste, so that
all activities along a value stream add value to
the product
Ideal State Map
Lean Tools
Value Stream Analysis
6S
Cells
Standard Work
Rapid Improvement Events
Value Stream Analysis
Use Value Stream Analysis as a planning tool
Break down the Value Stream in manageable
sections
Communicate the flow with maps
Information
Material
Use Value Stream Analysis to create 3 maps
Current
Ideal
Future (near time-within a year)
Develop action plan from the Future map
6S
Often confused with Lean, because you are
doing something
Second step, after Value Stream Analysis
6S
A tool to organize the workplace
SortKeep what you need, get rid of the rest
StraightenOrganize whats left
ScrubA clean workplace is more efficient
SafetyWithout our people, nothing gets done
StandardizeFind a best way and have
everyone do it that way
SustainDont let up
Cells Natural groups of parts or steps that add
value to a product
Single piece flow inside the cell
One at a time
If possible, one operator per cell
U-shaped to maximize human efficiency
Multi-skilled people required
Layout is based on the flow steps
Standard
Work
The precise
description of each work activity
specifying cycle time, takt time, the work
sequence of specific tasks, and the minimum
inventory of parts on hand to conduct the
activity
Everyone knows what they are supposed to do
at any moment in time
Rapid
Improvement
Events action, and
A seven
week cycle of preparation,
follow-up to improve one area or fix a
problem
People: work leaders, mechanics, workers,
supervisor, and a Lean Change Agent
Led by the supervisor or work leader
Guided by the Lean Change Agent
JIT
Kanban system
Pull system
Smaller lot that are better capable of providing variety for the
customer
Reduce set up time
lower costs
shorten lead
cycle time
improved quality
Features of lean production
Minimize cost of each part
No rework due to error
Decentralized decision making
Stoppage of work by worker if parts are defective
Pull WIP inventory
Lower WIP inventory
Decreased cost of design change
Less working capital
Lean construction
Clear objectives and delivery process
Maximizing performance for the customer
Designs concurrently products and process
Production control through out life cycle
Lean construction
Falling behind the critical path
Effort on offending activity
Duration and cost
Change the sequence
Trade cost for schedule
Managing combined effect of dependencies and variation
Partenring
Lean construction
Varying crew and varying resource availability
Activities decoupled by capacity or resource
buffer
Measuring and improving planning system
performance for workflow reliability
Lean contraction
Origin on brick laying
Motion and time study
Waste movement
Transformation Value Flow (TVF)
lean construction
flow process combined with conversion activities
reduce or eliminate flow activities
conversion activities made more efficient
