Rework Reduction in Construction Project

Rework Reduction Through the Use of Construction Lean Improvement Program (CLIP)

a Case Study in New Australian Embassy in Jakarta (AEJ) - Leighton Contractors Indonesia & Total Bangun Persada Joint Operation

Firdaus Basbeth

DMB Student of University of Padjadjaran Bandung QIK 2014 International ConferenceAscot House Melbourne February 21 2014

Construction Traditional Measure

(Result Based)▫Costs ▫Schedule▫Meeting code

Construction Lean Improvement Program

•Result and Process Based Measurement▫Costs ▫Schedule▫Meeting code▫Cycle time▫Rework▫Waste

LEAN

RIGHT THE FIRST TIME

Chancery and Staff Residence, Jakarta Project Description The project is Total plot area 40,000m2, total covered floor area 50,106m2 of which 43,500m2 is building and 6,600m2 is pergola and parking. The scope of work includes Partial Design, Engineering, • Procurement, Testing and Inspection, Construction a Compound, consisting of: o Basement, plus 5 floor chancery building of approximately 26,700m2,o Head of Mission residence, o 32 number staff residences, o Swimming pool, o Recreation facilities, o Guard houses, o Ancillary service buildings, o Landscaping, o Security walls,o All associated works in accordance with drawings, specifications. The construction duration is 36 months until 2016. It is still ongoing and under close monitoring by project management.

INTRODUCTION

•Construction traditional measure (Result Based) vs Performance Measurement System (Process Based)

•Construction Lean Improvement Program▫Lean Thinking▫Seven Waste▫5S▫Labor Competency Issue▫First Inspection Method

LITERATURE REVIEW

Reference Topics and quoteSaad Sarhan and Andrew Fox, (University of Plymouth, UK)(2012) ‘Performance measurement in the UK construction industry and its role in supporting theapplication of lean construction concepts’, Australasian Journal of Construction Economics and Building, 13 (1) 23-35

Benefits could be achieved from adopting the lean construction (LC) approach (Arbulu and Zabelle, 2006). However, the application of lean principles to construction has not been successful due to the failure to use appropriate process performance measurement systems (PMS).

LITERATURE REVIEW

Reference Topics and quote

Alarcon and Serpell, 1996 Results-based performance preferences measured in projects, specifically costs and schedule, are not appropriate for continuous improvement because they are not effective in identifying the root-causes of quality and productivity losses. Professionals and managers in the construction industry still have a tendency to measure performance in terms of time, cost and meeting code, as opposed to process performance measures (e.g. cycle time, Rework, waste)

LITERATURE REVIEW

Reference Topics and quoteHenny Pratiwi, M. Faiqun Niam, 2012.

is said that 62% of construction labors in Indonesia is an unskilled labors

Koskela (1992) (Garnett et al., 1998; Mossman, 2009a).

Lean thinking is a philosophy based on the concepts of lean production, when applied to construction, it could lead to improved performance.

(Garnett et al., 1998; Senaratne and Wijesiri, 2008).

Proposed the need to review construction production as a combination of conversion and flow processes to remove waste, when traditional thinking of construction was only focusing on conversion activities and ignoring flow and value considerations

LITERATURE REVIEW

Reference Topics and quoteFACTORS INFLUENCING CONSTRUCTION PRODUCTIVITY IN THE INDONESIAN CONTEXT

Sugiharto ALWISenior LecturerSchool of Graduate StudiesConstruction Management Program, Proceedings of the Eastern Asia Society for Transportation Studies, Vol.4, October, 2003

The majority of the Indonesian construction labour force are self-employed, and are often farmers from rural areas. They are low skilled, earn low wages, and hence are less effective (Kaming et al., 1997).

These young workers enter the pool of construction workers, for it is the only industry that can provide employment for those without any qualifications. It is reported that approximately 86% skilled workers in Indonesia are informally trained by a senior craftsman

Henny Pratiwi, M. Faiqun Niam, 2012.

62% of construction labors in Indonesia is an unskilled labors

Lean Thinking

Lean thinking is a philosophy based on the concepts of lean production.

Lean is focused on the achievement of three key outcomes:1. Maximizing value from the view of the customer2. Eliminating waste (non-value adding processes)3. Creating smooth and reliable flow of activity.

Benefit

Tangible benefits•Productivity ↑ 16 – 40 %•Refurb lead time ↓ 25%•Pre-construction lead time (time between client approval and start of works on-site) ↓•48%

Intangible benefits•Best practice set-up, methods introduced, operation & organization improvements,•waste reduction, delays & disruptions reduced, snags reduced, communications•improved, Team dynamics improved, partnering benefits, skills transfer in the industry

Seven Type of Waste

1. Defect2. Over Production3. Transportation4. Waiting5. Over Processing6. Motion7. Inventory

Seven Type of Waste

1. Defect2. Over Production3. Transportation4. Waiting5. Over Processing6. Motion7. Inventory

Implementation Strategy

1. 5S2. Measuring and Monitoring the

Performance of • NCR• Rework• Waste3. The First Inspection System4. A Solid and updated QA Plan5. Recruitment based on labor competency

plus continual training.

5SStrategy for creating a well organized, smoothly flowing process. It has been applied in the shop with great success. Masaaki Imai says, “If one is not doing 5S, one is not doing lean.”

Benefits of 5S

•Increases organization and efficiency•Avoids wasted motion•Increases safety•Eliminates unnecessary inventory•Offers improvements at an inexpensive

cost

METHOD

The research is a Case Study in Leighton Contractors Indonesia in New Australian Embassy Project (2013 – 2016)

Primary and Secondary Data are gathered using both qualitative and quantitative approaches, and interview

RESULTTotal NCR and Root cause

RESULTThe Root cause

RESULTTotal NCR in Two Different Area

RESULTTotal NCR in Chancery

DISCUSSION• In the construction industry, defect or rework is a

challenge that affects the productivity of a project. Additional resources are required ie: labor, materials, and energy beyond what is budgeted had the work been done right the first time – not to mentioned potential risk with respect to quality and safety.

• The New Australian Embassy Project has in place and continually updates their Quality Plan. Improvement activities can be seen from the frequency of Non Conformance Report.(Rework required.) Training to up skill labor to LCI standards, Internal Quality Audits, and increased management attention has been a focus the last 6 months.

DISCUSSION

• The New Autralian Embassy in Jakarta (AEJ) implemented the First Inspector System (FIS) – by putting full responsibility of the quality of product delivered to the supervisor and foreman, so by the time the quality inspector come to check the work, the variation from specification will be the minimum. The results have seen the non-conformance reports reduce by 57%. The saving for the project is USD$20,000 or Rupiah 240mil.

DISCUSSION

• The Construction Lean Improvement Program Works in Chancery Area in the Project. Suggestion to be Implemented in some others construction areas in the Project, with the additional strategy of : 5S, First Inspector System, Performance Monitoring (Process Based) Continual Training on the Labor to maintaining quality of the product.

• Buy in from Project Manager and its implementation strategy need to be in the first place – stated in Quality Plan.

DISCUSSIONRework / NCR Reduction in CLIP include the following processes:

•Rework tracking and main cause classification: detecting and identifying the rework that occurs and captured, investigate the causes in a database that used collaboratively by the client, contractors and designer.

•Corrective action : developing options and actions that will bring about changes in the project management system with the goal of eliminating the root cause and reducing construction rework

•Evaluation of the effectiveness of the corrective action taken.

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