Implementing LEAN construction delivery involves an integration of Strategy, People, and Process appropriate to the specific organization.
Today, all the tools and services are readily available to any real property owner that wants to consistently procure and execute quality repair, renovation, or new construction projects on-time and on-budget.
For example, the OpenJOC(TM) Job Order Contracting Solution is a powerful LEAN construction services procurement and project delivery method for best value construction services production planning and life-cycle management…from concept through warranty and beyond.
Using the OpenJOC(TM) Job Order Contracting Solution enables real property owners and facilities managers to more efficiently plan their work and execute by collaboratively teaming with their awarded builders. Owner/builder teams that apply the OpenJOC(TM) Job Order Contracting Solution have been able to significantly reduce the project delivery times, while increasing the quality of the finished work and reducing overall cost. Furthermore, they were able to more accurately and transparently forecast cost, schedule, and labor demands leading to more efficient use of limited resources.
The AEC and Facilities Management industry is fragmented and unproductive. While many have looked towards technology as the “silver bullet”, software simply can’t correct poor business practices, lack of requisite skills, and an industry resistant to change.
One need to look no further than the stagnation of BIM in the U.S. and the U.K. to see that software is not the compass that will navigate the AEC and FM sector towards a higher percentage of quality outcomes delivered in a timely manner and on-budget.
The core elements required to drive the AEC and FM sector toward better outcomes are listed below.
Elevated Owner Capability & Leadership
Best value procurement
Collaborative LEAN management practices
Common terms, definitions, and data architectures
Full financial transparency
Fully defined and documented roles, responsibilities, deliverables, and processes
Continuous education, monitoring, & improvement
The causal factors for the AEC/FM sector’s problems include…
No common language.
Lack of defined and consistently deployed procedures and workflows that benefit all participants
Obsolete technology… reliance upon monolithic IWMS and/or BIM systems.
Focus upon “the weeds”… forced levels of rigid detail versus common understanding.
Costly, inflexible, and/or untimely revision cycle “standards”..(i.e. “ISO”, “NBIMS” …) versus “open” flexible guidelines and crowd sourced and shared knowledge.
No minimum level of competency and lack of proper oversight.
The AEC and FM industry lacks coordination due to void of life-cycle based based goals and objectives and an associated lack of focus upon OUTCOMES. Owners simply lack the capability, competencies, and/or motivation to engage in leadership.
Collaboration, coordination, and improved productivity can only occur within a framework of goals, competent actors, resources, and activities. The linkage between the built environment and organizational goals is usually taken for granted or simply not understood, and certainly very rarely proactively managed.
Actors and activities are linked by inter-dependencies which must be formally structured, if not mandated via collaborative construction delivery methods. Similarly competencies in all requisite AEC and FM domains must be required.
Clarity and purpose must be provided by Real Property Owners as well as formal education and ongoing professional training. While technology has its supporting role, Owner must firmly be in the drivers seat… steering the AEC and FM sectors toward efficient life-cycle asset management strategies and practices.
If you consider BIM to be the solution to low construction productivity, think again.
3D visualization and technology will do little to solve construction project delivery woes.
The root of the decades long decline in construction productivity and associated poor facility management practices is cultural.
Construction is like any other relatively complex manufacturing process. It requires a focus upon best management practices, education and training, key performance indicators, and continuous improvement, in short, LEAN business process application.
Reducing end product variability, cycle-times, waste, and cost is not rocket science. There are multiple proven LEAN construction delivery methods and life-cycle / total cost-of-ownership models available. Owners must drive their accelerated adoption.
The most widely used and successful LEAN construction delivery methods are Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for renovation, repair, maintenance, sustainability, and minor new construction. When deployed and managed properly by Owners, on-time, on-budget, quality construction is the norm versus the exception.
Characteristics of LEAN Construction Delivery
Mutual Respect & Trust
Owner Leadership without excessive management & control
Best Value Procurement
Common Standard Terms, Definitions, & Data Architectures (UNIFORMAT, MASTERFORMAT, OMNICLASS)
Continuous Education, Training, & Improvement
Key Performance Indicators (KPIs) / Audits
Written Execution / Operations Manuals (Roles, Responsibilities, Deliverables, Workflows / Standardized Work Processes, Reporting Requirements…)
Industry-wide JOB ORDER CONTRACTING Study Announced – JOC
4Clicks has been in recent communications with Arizona State University’s (ASU) Performance Based Studies Research Group (PBSRG) about a planned JOC Research Study. We are excited about the potential to document the value associated with JOC vs. traditional construction deliver methods.
Study areas will include cost and time savings and increased flexibility among others. Publication of the final report is targeted for January 2016.
While we are in the early stages of learning more about the study, we are encouraged by the capabilities of the researchers and the potential value of this study.
Owners, Contractors, and Service Providers experienced with JOC will be encouraged to share their knowledge and experiences. The initial announcement and additional information are included below for your review. Please feel free to contact us with any questions.
About PRBSRG: The Performance Based Studies Research Group (PBSRG) is a group of researchers and educators at Arizona State University that focus upon “Best Value Models” consisting of three main phases: Selection, Pre-Planning & Quality Control, and Management by Risk Minimization.
via http://www.4Clicks.com – 4Clicks Solutions develops and delivers a comprehensive suite of construction cost estimating and project management software to connect people, information and processes – anytime, anywhere.
Date: 11/20/2014 Subject: JOC Industry Research
The Performance Based Studies Research Group (PBSRG) out of Arizona State University (ASU) is currently conducting an industry wide study evaluating the Job Order Contracting (JOC) delivery system. The finalized study, anticipated to be released in January 2016, will document the value that comes from JOC as a procurement method, regardless of system utilized.
PBSRG is requesting participation and support from Owners, Contractors, and Service Providers by providing project information collected while using the JOC system. Time commitment is expected to be minimal for participants.
Objective of Research: To evaluate the value (in terms of time, cost, and customer satisfaction) achieved when utilizing JOC over other traditional methods to complete projects. Previous JOC studies have been unable to identify the savings JOC brings to an owner through administration costs, time savings, and increased flexibility to achieve organizational objectives. They have also failed to identify why contractors under the JOC system are able to deliver construction for a lower cost and why they are motivated to deliver high quality to the owner. The aim of this study is to work with JOC users to identify this. The study also hopes to identify characteristics and practices of successful JOC implementations. At the conclusion of this study a report will be published through Arizona State University identifying the findings of the JOC system.
The PBSRG out of ASU will be collecting and analyzing all JOC performance information. PBSRG will keep all data collected confidential unless given permission to share with other parties.
Participation: The JOC contractor and owner community is highly encouraged to participate in this study. Owner’s that participate in this study will be kept abreast of developments and be offered education on the findings of the study. Contractors who participate will be able to use the performance information and the education that comes from this research.
Milestone Schedule: The expected duration of this study will be 1 year (Jan 2015 – Jan 2016). The following are major activities that will be performed along with estimated completion dates and time frames:
JOC Conference (to be held in Phoenix) (Organizations will also be given the option of participating by WebEx) 1/9/2015
Finalization of JOC Research Strategic Plan 1/26/2015
Survey and data collection (from all stakeholders) 4/3/2015 – 9/18/2015
Analysis of Data and Draft JOC Report 11/20/20015
Final JOC Report 1/25/2016
Distribution of Research: The results of this research will be distributed to all participants. It will also be made available to the public at no fee.