An Exploratory Study of Lean and Voice of Customer in Irish Capital Projects: Obstacles, Barriers, and Critical Success Factors

An Exploratory Study of Lean and Voice of Customer in Irish Capital Projects: Obstacles, Barriers, and Critical Success FactorsWilliam Power* and Darrin Taylor*Corresponding Author: Mr William Power, DPS Engineering Cork, 4... [ view full abstract ]

An Exploratory Study of Lean and Voice of Customer in Irish Capital Projects: Obstacles, Barriers, and Critical Success Factors

William Power* and Darrin Taylor

*Corresponding Author: Mr William Power, DPS Engineering Cork, 4 Eastgate Avenue, Eastgate Business Park, Little Island, Co. Cork. Tel: [021 7305000. Mob: 087 9818773. Email: willie.power@dpsgroupglobal.com

Mr Darrin Taylor, Department of Management & Organisation, School of Business, Waterford Institute of Technology, Cork Road, Waterford. Tel: 051 834129. Mob: 087 6341884. Email: dtaylor@wit.ie

KEYWORDS: Lean, Construction, Lean Construction, Value, Voice of Customer, Strategy, Leadership, Ireland

ABSTRACT

Aim

This study explores Lean and voice of customer (VOC) in Irish capital projects, and specifically the obstacles, barriers, and critical success factors in implementing Lean Construction.

A performing construction sector is integral for economic growth (Ruddock and Lopes, 2006; Choy, 2011; Lopes et al., 2010), globally employing c.7 percent of the working-age population with c.USD$10 trillion spent on construction-related goods and services every year (McKinsey, 2017).

Construction represents c.9.2 percent of Irish GDP (Turner and Townsend, 2016), employs c.9.5 percent of total workforce (CIF, 2016), and averages c.9.1 percent annual growth rate for 2016-2020 (CIF, 2016). It employs 136,000 people (CIF, 2016); contributes approx. €16 billion to GDP (CSO, 2016); and by 2020 annual sector output will be €20 billion and 213,000 will be employed (DKM, 2016).

Construction suffers from adversarial relationships, poor productivity, and substantial inefficiency and rework (Latham, 1994; Egan, 1998; Thomsen et al., 2009; McGraw Hill, 2013); thus costing too much and taking too long (Bertelsen, 2004; Hamzeh et al., 2007). Construction experiences poor productivity relative to other sectors that have transformed through Lean (McKinsey, 2017; Oakland and Marosszeky, 2017; Thomsen et al., 2009). Studies highlight non-value-add (NVA) (Sarhan et al., 2017; Hwang et al., 2009; Diekmann et al., 2004); Egan (1998) found that 40-60 per cent of construction labour is inefficient; and the Construction Industry Institute (2004) found 57 per cent NVA in labour productive time, versus 12 per cent in manufacturing (Diekmann et al., 2004).

This “productivity imperative” (McKinsey, 2017) highlights the urgent need for sector-wide Lean transformation (Oakland and Marosszeky, 2017). This study explores Lean in the Irish construction sector, with primary objectives:

1. To explore the obstacles and barriers that impede Lean implementation and the capture and sharing of Value and VOC on capital projects; and
2. To identify the critical success factors (CSF) that facilitate Lean implementation and the capture and sharing of Value and VOC on capital projects.

Method

This study was exploratory in nature, and adopted a mixed methods approach.

A literature search on Lean Construction in Ireland affirmed a dearth of such studies. Tellis (1997) asserts one start with exploratory research on new or little researched topics. To establish foundational data on Lean in the Irish construction sector, a survey questionnaire was distributed to the Irish construction community. Analysis established areas for further investigation and enabled a deeper, more nuanced assessment for the interviews.

Semi-structured interviews were conducted in June 2017 with a purposeful sample of six senior managers identified as advocates for Lean Construction. Review of prevailing literature challenged construction’s delivery of value to customers, thus interviews focussed on critical themes of Value and VOC.

Mixed methods and triangulation enabled validity and reliability; and analysis utilised a convergent parallel design format (Creswell, 2013).

Findings

There was universal acceptance that Lean brings benefits to construction. However, there is poor awareness and understanding of the principles of Lean Construction; absence of a sector-wide common language; and a perception that Lean is complicated, complex, and difficult to understand, and only suited to steady-state manufacturing environments versus complex construction projects. Clients and senior management lack foundational understanding of Lean principles, and issues pertain to traditional construction project management versus Lean Construction management, an unwillingness to change, adopting short-term perspectives, and defining benefits in financial and cost terms only.

Findings suggest the fragmented nature of construction, allied to traditional culture and practices, make the sector slow to change in the absence of an overarching driver or critical urgency. Lengthy and expensive procurement processes impede knowledge sharing and lead to conflicting relationships which make for a challenging business environment.

The need and importance of a national coordinating entity dedicated to the adoption of Lean across the Irish construction sector; opportunities to develop sectoral best practice management behaviours; and the value of published case studies on the impact and benefits of Lean Construction were also identified.

Research Limitations

The researcher undertook this study whilst in full-time employment as part of a taught executive Masters programme, with accompanying scope, depth, time and resource limitations; and it represents a snapshot in time of a small number of individuals’ perspectives.

Implications

Construction is inefficient and fundamental barriers to improving productivity remain in place. The sector must decide whether to continue with the traditional capital project thinking and delivery model or whether to transform by implementing Lean to deliver benefits for itself, its clients, and the country. Transformation would enable socio-economic value-add with previously wasted capital and resources redeployed to value-adding activities and services.

Value

This study helps bridge a literature gap regarding adoption of Lean thinking and practices in the Irish construction. The fundamental assertion is that Irish construction adopt Lean to transform as an entire sector through stakeholder collaboration and integrated project delivery.

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