https://doi.org/10.24928/2019/0139

Lessons for Construction: Delivering Mega Project on Time Through Culture and Hoshin Kanri

Søren Leth 1, Jon Lerche 2, Hasse H. Neve 3 & Søren Wandahl4

1Owner and Director, Zephyr Consulting, Denmark, +45 6169 9150, sln@zephyrconsulting.dk
2PhD Student, Department of Business Development at Aarhus University, Denmark, +4560133595, jon.lerche@btech.au.dk
3PhD Student, Department of Engineering at Aarhus University, Denmark, +4528791838, hn@eng.au.dk
4Professor, Department of Engineering at Aarhus University, Denmark, +4541893216, swa@eng.au.dk

Abstract

Managing risks in mega projects has received a lot of attention in the construction community. However, very few empirical results have reported on-time and on-budget deliveries. This paper presents a case study from a closely related industry, offshore oil and gas construction, where the lean project management and culture method Hoshin Kanri was implemented on a mega project. The results of implementing Hoshin Kanri in this case have been very positive, with project lead time reduction of 10 percent, risk incentive account of USD 1 billion saved, and a potential of an additionally revenue of 2.8 million USD/day due to reduced lead time and early production startup. The paper reviews how Hoshin Kanri is implemented in this specific mega project, and compares it to other industries, processes, and previous IGLC research to extract lessons to be learned for the construction industry. The implemented Hoshin Kanri was found effective in developing the interlinkage between the strategy and project organization from upper to lower levels. The contribution of this paper is to illustrate the benefits of Hoshin Kanri and to propose further development of this within the construction community.

Keywords

Hoshin Kanri, Mega project, Visual management, Culture, Collaboration

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Reference

Leth , S. , Lerche , J. , Neve , H. H. & Wandahl, S. 2019, 'Lessons for Construction: Delivering Mega Project on Time Through Culture and Hoshin Kanri' In:, Proc. 27th Annual Conference of the International Group for Lean Construction (IGLC). Dublin, Ireland, 3-5 Jul 2019. pp 1011-1022

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