Construction Innovation: The Implementation of Lean Construction towards Sustainable Innovation

The prevalent theory of construction has been seen as a hindrance to construction innovation. The concept of lean construction is concerned with the application of lean thinking to the construction industry. However, in lean construction there are many arguments supporting the view that ‘the prevalent theory of production (or specifically, theory of construction) is counterproductive, and leads to added costs and reduced overall performance through the deficient production control principles based on the theory’. Presently, the construction industry and all other organisations face various problems as a result of the uncertainties of the global economic climate; including labour redundancies, delayed projects and zero margin contract bids. The construction industry is seen as one of the worst performing industry as regards innovation. This calls for concern about the poor state of construction innovation. The emergence of lean construction is to bring significant reform to the construction industry to achieve the objectives of sustainability within the built environment in the critical social, economic and environmental aspects. Increasingly, lean construction offers new techniques of constructing sustainable projects. It is about reducing costs by cutting waste, innovating by engaging people and organising the work-place to be more efficient. Hence, the aim of this paper is to highlight the cost and benefits of the potential contribution of lean construction to the attainment of sustainable innovation in construction. An exploratory method of investigation is adopted in achieving the aim of this paper by critically reviewing, exploring, and synthesising literature and industry case studies related to the subject matter. Evidence from the literature reveals that innovation through lean improvement in construction processes has provided proof of sustainability outcomes in terms of reduced waste, effort and time. Hence, lean construction impacts significantly on innovation by enhancing competitiveness, innovativeness, and resource efficiency within the construction industry. Keywords: Construction industry, Construction innovation, Lean construction, Sustainabilit

Annual Report for the Construction Industry Progress Fund and the Associated General Contractors of Alaska

The Construction Industry Progress Fund (CIPF) and the Associated General Contractors (AGC) of Alaska are pleased to have produced another edition of “Alaska’s Construction Spending Forecast.” Compiled and written by Scott Goldsmith and Mouhcine Guettabi of the University of Alaska’s Institute of Social and Economic Research (ISER), the “Forecast” reviews construction activity, projects and spending by both the private and public sectors for the year ahead. The construction trade is Alaska’s third largest industry, paying the second highest wages, employing nearly 16,000 workers with a payroll over $1 billion. It accounts for 20 percent of Alaska’s total economy and currently contributes approximately$8 billion to the state’s economy. The construction industry reflects the pulse of the economy. When it is vigorous, so is the state’s economy. Both CIPF and AGC are proud to make this publication available annually and hope it provides useful information for you. AGC is a non-profit, full service construction association for commercial and industrial contractors, subcontractors and associates. CIPF is organized to advance the interests of the construction industry throughout the state of Alaska through a management and labor partnership.Northrim Bank. The Associated General Contractors of Alaska. The Construction Industry Progress Fund

An analysis of the change in financial position of the construction industry in Hong Kong

The purpose of this report is to find out the relationship between Hong Kong construction industry and the market condition of Hong Kong in the past 5 years (1993-97). Prior research showed that construction industry is an important contributor to the economic development of Singapore by helping to establish the infrastructure required for sustaining socioeconomic development (Ofori 1988). Although a number of researches were on the prediction of solvency, none was related to the construction industry in Hong Kong. Recently, Hong Kong has been facing economy difficulty, concern is aroused in the healthiness of Hong Kong business. Construction industry, being an important industry, deserves to study. To determine the relationship between market condition and the industry, we use the Capital Asset Pricing Model (CAPM). The results of CAPM showed that the financial performance of construction companies follow the movement of the market. We determine the change of financial position of Hong Kong construction companies by using the industrial average of the construction sector in Hong Kong and applying financial statement analysis techniques. We found from the financial statement analysis that most construction companies were not profitable and most of them had high gearing ratios. Questionnaires are sent to 22 listed construction companies to identify the possible factors that affect the their performance. According to the view of these construction companies, their performance was much affected by the economic condition. These results are consistent in the way that the construction companies are not profitable during the periods. Long Debtor’s Day and high gearing position are norms in construction industry. Most sample companies in our study follow these norms. The result shows that most sample companies follow the market to grow but the growth rate is not as rapid as the market. We recommend that the construction companies should better control their debt and expenses with great care so as to improve profitability and financial leverage. Through value management to achieve an effective management of change

Why small and medium construction enterprises do not employ six sigma

Six sigma (6σ) is a powerful business strategy which is aimed at increasing customer satisfaction and profitability by improving the quality of products and services. Many organisations have implemented 6σ and achieved significant levels of success. Successful implementation of 6σ leads to outcomes that would be welcome in the construction industry, given its reputation of suboptimal performance. The construction industry relies heavily on small and medium enterprises (SMEs). Any improvement in construction SMEs would lead to improvements in the construction industry as a whole. Against this background, a survey was undertaken to establish whether construction SMEs used 6σ and to identify factors affecting the adoption of this business strategy. It was found that none of the SMEs in the sample used 6σ. The reasons given for not employing 6σ, in descending order of importance, were: lack of knowledge about 6σ programme; lack of resources (human, time, money); 6σ programme not required by customers; other sufficient quality system in use; 6σ provides no perceived benefits; and end users not prepared to pay for 6σ programme. These reasons can be challenged when a critical analysis of innovation in the external environment within which construction SMEs operate, trends in the mode of delivery of construction industry products, trends in performance measurement in the construction industry and the flexibility of 6σ as a quantitative approach to managing quality. Construction industry stakeholders need to think about 6σ critically and make informed decisions about its role in the construction industry quality management agenda

Human Factors Influencing Contractors' Risk Attitudes: A Case Study of the Malaysian Construction Industry

Malaysia is one of the most rapidly developing countries among developing nations. The construction industry has played a major role in Malaysia’s rapid economic growth. Among the major sectors in Malaysia, the importance of the construction industry is unique regardless of the level of the country’s development. However, the attitude of the construction industry in Malaysia towards managing contractors’ risk attitudes is very weak. The introduction of the Occupational Safety and Health Act in 1994 by the Malaysian government made all industries in Malaysia to identify risks, conduct risk assessment and control risk. In addition, the Malaysian construction industry simultaneously implemented an integrated system to ensure consistency and better performance of projects. To identify the factors influencing contractors' risk attitudes, relevant literature was reviewed, and a questionnaire survey was conducted. This study focused on the G7 contractors operating in the Malaysian construction industry. One hundred and nineteen copies of a structured questionnaire were analysed with a response rate of 85%. Structural equation modelling was utilized to test the hypotheses developed for the study. Results showed that government policies played a moderating role in enhancing the relationship between human-related factors affecting contractors’ risk attitudes in the construction industry

Understanding Occupational and Skill Demand in New Jersey's Construction Industry

The construction industry is integral to New Jersey's economy, employing over 160,000 people. Nationally and in New Jersey, the construction industry is thriving, injecting billions of dollars into the state. Jobs in the industry are changing with an influx of new technology and new building materials, requiring that workers have more technical expertise than in the past. This report summarizes the skill, knowledge, and educational requirements of key construction occupations and identifies strategies for meeting the key workforce challenges facing the industry

Organizational Culture: Case of the Finnish Construction Industry

Academic literature has long recognized the correlation between a company’s organizational culture and its quality performance. The Finnish construction industry is still a highly human powered industry, and thus, organizational culture is seen to have a significant effect on an organization’s efficiency as well. The aim of this study is to examine and determine organizational cultural profiles of organizations in the Finnish construction industry as they are currently perceived and preferred by professionals themselves. In all, 121 professionals working in organizations in the Finnish construction industry were surveyed using the Organizational Culture Assessment Instrument (OCAI). The reliability of characteristics was tested by calculating Cronbach alpha reliability coefficients, and the found differences between the response characteristics were analysed in-depth with paired and independent t-test analyses. The findings show that, on average, construction industry organizations in Finland currently operate with a mixture of clan and hierarchy cultures. Thus, the current organizational culture stresses the point of view of internal focus and integration. However, the organizations desired to emphasize more flexibility and discretion toward individuals. The novelty value of this paper is presenting existing and preferred culture profiles in the Finnish construction industry. These found profiles have the potential to improve management of organizations, which results in better efficiency of the industry through better performance of organizations in the construction industry

The production cycles of the Scottish construction industry, 1802-2002

The revival of Scotland's national Parliament has focussed attention on potential differences in institutions and industries north of the border, compared to the rest of the UK. The Scottish construction industry, as with its counterparts anywhere, has developed enormously over the past two centuries and has experienced fluctuations due to internal and external influences. Much has been written about business cycles and building cycles relating to the construction industry in England, but this does not give a useful context for studies of the Scottish industry. This analysis of long-term time-series data is part of a larger project, looking historical aspects of the construction industry in Scotland, particularly the place of women in the industry, in order to establish aspects of the context and economic climate in which women found roles in the industry. This paper aims to use a wide range of data over the period in order to consider the Scottish experience. Has the Scottish construction industry's output demonstrated a cyclic nature in the last two centuries? What influences any such cycles? How do the cycles and any influences compare with the rest of the United Kingdom? Whereas most previous commentators, such as Cairncross, Rodgers and Glendinning , have mainly used housebuilding statistics as a tool for discussing the business cycles of the construction industry, this paper has gathered statistics for a wider range of construction activities. These are employed to show how the Scottish construction industry has its own pattern of long and short cycles. The patterns of boom-bust cycles associated with external events (such as wars or financial depression) or government intervention (such as housing policy or subsidies) can clearly be identified and compared with cycle patterns and shapes due to other effects such as industry structural features and credit availability

A study of BIM collaboration requirements and available features in existing model collaboration systems

Established collaboration practices in the construction industry are document centric and are challenged by the introduction of Building Information Modelling (BIM). Document management collaboration systems (e.g. Extranets) have significantly improved the document collaboration in recent years; however their capabilities for model collaboration are limited and do not support the complex requirements of BIM collaboration. The construction industry is responding to this situation by adopting emerging model collaboration systems (MCS), such as model servers, with the ability to exploit and reuse information directly from the models to extend the current intra-disciplinary collaboration towards integrated multi-disciplinary collaboration on models. The functions of existing MCSs have evolved from the manufacturing industry and there is no concrete study on how these functions correspond to the requirements of the construction industry, especially with BIM requirements. This research has conducted focus group sessions with major industry disciplines to explore the user requirements for BIM collaboration. The research results have been used to categorise and express the features of existing MCS which are then analysed in selected MCS from a user’s perspective. The potential of MCS and the match or gap in user requirements and available model collaboration features is discussed. This study concludes that model collaborative solutions for construction industry users are available in different capacities; however a comprehensive custom built solution is yet to be realized. The research results are useful for construction industry professionals, software developers and researchers involved in exploring collaborative solutions for the construction industry

Professional Ethics in the Construction Industry

The results are provided of a small, but reprersentative, questionnaire survey of typical project managers, architects and building contractors concerning their views and experiences on a range of ethical issues surrounding construction industry activities. Most (90%) subscribed to a professional Code of Ethics and many (45%) had an Ethical Code of Conduct in their employing organisations, with the majority (84%) considering good ethical practice to be an important organisational goal. 93% of the respondents agreed that "Business Ethics" should be driven or governed by "Personal Ethics", with 84% of respondents stating that a balance of both the requirements of the client and the impact on the public should be maintained. No respondents were aware of any cases of employers attempting to force their employees to initiate, or participate in, unethical conduct. Despite this, all the respondents had witnessed or experienced some degree of unethical conduct, in the form of unfair conduct (81%), negligence (67%), conflict of interest (48%), collusive tendering (44%), fraud (35%), confidentiality and propriety breach (32%), bribery (26%) and violation of environmental ethics (20%)