Driving Continuous Improvement by Developing and Leveraging Lean Key Performance Indicators

Fernando España1, Cynthia C.Y. Tsao2 & Mark Hauser3

1 President, CornerCube Inc (www.cornercubeinc.com), 89 Oakmont Avenue, Piedmont, CA 94610, Phone +1 510/813-2038, fespana@cornercubeinc.com
2Research Affiliate, Lean Construction Institute, Brookline, MA, 02445, Phone +1 510/593-4884, dr.tsao@leanconstruction.org
3Vice-President, CornerCube Inc (www.cornercubeinc.com), 89 Oakmont Avenue, Piedmont, CA 94610, Phone +1 925/588-9799, mhauser@cornercubeinc.com

Abstract

Lean advocates defining value from the perspective of the customer, striving for perfection, continuous improvement, and reducing waste. However, unlike formal lean programs in the manufacturing sector, the Architecture-Engineering- Construction (AEC) industry often uses the Last Planner System ® (LPS) and forms ad hoc project teams to manage their lean programs. To advance to the next stage of improving project performance, we propose that the AEC industry begin adopting an available set of lean metrics and analytics that are more effective in evaluating system performance. These metrics and analytics can help project teams aggregate and filter project and enterprise information. They can then determine lean key performance indicators that reveal new opportunities for continuous improvement of the production system. Ensuring that a holistic objective as well as a good governance structure is in place is important to leverage the metrics and analytics as enablers for global optimization. Otherwise, misuse may lead to measurement drift and local optimization from misguided attempts to improve one metric in isolation. By aligning lean metrics and analytics to delivery, stakeholder management, and risk mitigation strategies, owners of capital programs and their service providers can attain better project outcomes and accelerate continuous improvement objectives.

Keywords

KPIs, measurement drift, lean governance, system performance, metrics, analytics

Files

Reference

España, F. , Tsao, C.C. & Hauser, M. 2012, 'Driving Continuous Improvement by Developing and Leveraging Lean Key Performance Indicators' In:, Tommelein, I.D. & Pasquire, C.L., 20th Annual Conference of the International Group for Lean Construction. San Diego, USA, 18-20 Jul 2012.

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