Lean Management Model for Construction of High-Rise Apartment Buildings

Execution of the finishing works in high-rise apartment buildings is made complex by the need to customize apartments to the varying requirements and designs of individual clients. The conventional construction planning practice of progressing upward from floor to floor breaks down in the face of the arbitrary sequence in which clients finalize their decisions. The results are long cycle times for delivery of completed apartments and corollary high levels of work in progress, budget and schedule overruns, and general dissatisfaction with the process on the part of the developer, contractor, subcontractors, and the clients. Application of lean construction principles to this problem has led to development of a management model that adopts pull scheduling, reduced batch sizes, and a degree of multiskilling. The main benefits expected are an enhanced ability to provide customized apartments, improved cash flow, and reduced apartment delivery cycle times. The model was first formulated in theory, then tested using a management simulation game and computer simulation, and subsequently, developed for practical application. This paper presents an analysis of conventional practice, the theoretical background to the lean approach, and the specific management changes proposed.     

Implications of Even Flow Production Methodology for U.S. Housing Industry

Production building in the residential sector is often described as the portion of the construction industry that is most like the manufacturing sector. In modern tract construction in the United States, a small number of models are generally repeated several times in a relatively confined area, using specialized trade contractors to complete each phase of each home. Management of the handoffs between predecessor and successor trade contractors is therefore a critical component in the successful completion of a residential project. In order to bring more reliable planning to this process, a workflow-leveling strategy known as even flow production has come into use in the industry in recent years. Even flow production is a strategy intended to reduce the variability in the workflow for trade contractors in the process, thereby gaining production efficiencies. In practice, different operational definitions are in use. This paper describes a series of simulation experiments to identify the management implications of two common strategies (activity-based versus start-based). A special-purpose simulation template was built for the Simphony environment for this purpose. The pace chosen for the flow of activities was found to significantly affect the speed at which the subdivision was completed. The even flow strategy was found to affect the subdivision completion time only slightly, but to have a significant impact on workflow variability and management effort. Control of the pace of starts of only the first activity exhibited nearly the same degree of variability as if the pace of starts were matched to a sales pace.     

Model for Predicting the Performance of Project Managers at the Construction Phase of Mass House Building Projects

The need to match project managers’ (PMs) performance measures onto projects of both unique and similar characteristics has long since been acknowledged by researchers. The need for these measures to reflect the various phases of the project life cycle has also been contended in the recent past. Here, a competency-based multidimensional conceptual model is proposed for mass house building projects (MHBPs). The model reflects both performance behaviors and outcome in predicting the PMs’ performances at the conceptual, planning, design, tender, construction, and operational phases of the project life cycle. Adopting a positivist approach, data elicited for the construction phase is analyzed using multiple regression techniques (stepwise selection). Out of a broad range of behavioral metrics identified as the independent variables, the findings suggest the best predictors of PMs’ performances in MHBPs at the construction phase are: job knowledge in site layout techniques for repetitive construction works; dedication in helping works contractors achieve works schedule; job knowledge of appropriate technology transfer for repetitive construction works; effective time management practices on house units; ability to provide effective solution to conflicts, simultaneously maintaining good relationships; ease with which works contractors are able to approach the PM and volunteering to help works contractors solve personal problems. ANOVA, multicollineriality, Durbin–Watson, and residual analysis, confirm the goodness of fit. Validation of the model also reflected reasonably high predictive accuracy suggesting the findings could be generalized. These results indicate that the model can be a reliable tool for predicting the performance of PMs in MHBPs.     

Process Model for Administrating Construction Claims

Claims for additional costs and time extensions result from a variety of events occurring during the course of construction. To enhance the chances of success, contractors submitting claims must closely follow the steps stipulated in the contract conditions, provide a breakdown of alleged additional costs and time, and present sufficient documentation. On the other hand, project owners need to follow an overall comprehensive step-by-step procedure for tracking and managing the claims submitted by contractors. The paper presents a claims-management process that could be used by all parties involved in construction. The process identifies the major information-gathering and decision-making milestones as well as the notice and substantiation compliance checkpoints, which are critical to the development of defense arguments as claims are addressed. It further emphasizes the use of tools such as simulation, scheduling, productivity, and economic analysis and other modeling techniques in judging the level of justification and reasonableness of submitted claims.     

LEAPCON: Simulation of Lean Construction of High-Rise Apartment Buildings

A lean model has been proposed for the construction management of high-rise apartment buildings with customized apartment designs. It incorporates a number of changes to traditional management practice, including single-piece flow with pull scheduling, work restructuring, and multiskilling. A simulated construction process scenario was devised for experimental evaluation of the model. The simulation was first implemented as a live management game, in which participants played the roles of the clients, general contractor, and subcontractors. Eleven runs with different teams indicated that the lean model increased throughput, improved cash flow, and reduced apartment delivery cycle time. However, the limitations of the live simulation led the writers to implement a discrete event computer simulation of the same process. The computer simulation reinforced the findings of the live simulation and emphasized the specific beneficial effect of single-piece flow under pull scheduling. The lean model may be of immediate interest to construction planners and managers because it enables full customization with minimal waste and no additional resources. The demonstrative clarity of the lean model simulation, both live and computerized, makes it a powerful tool for education and research.     

Risk/Reward Compensation Model for Civil Engineering Infrastructure Alliance Projects

A risk/reward model is described as that which aligns project participants’ behaviors toward the achievement of a project’s performance objectives through the use of incentives. A risk/reward model typically includes the following mechanisms: risk/reward shared percentages among nonowner participants, project cost risk/reward, noncost risk/reward, risk cap, and achievability of performance targets. This paper examines the influence of a risk/reward model on the behavior of project participants. Twenty-nine industry practitioners from eight civil infrastructure project alliances were interviewed. The interviews revealed that individual features of a risk/reward model identified had merits, but the achievability of performance targets model appeared to be the most appropriate for promoting positive behaviors within the project team. Additionally, it was found that all incentive aspects of the model examined led to positive and constructive behaviors occurring due to their perceived fairness and equity of payment structure. Participants indicated that having a commercial interest in an alliance’s performance outcomes ensured collaboration and engagement throughout the project’s life cycle. It is concluded that risk/reward sharing is pivotal to obtaining a successful project outcome for the procurement of civil engineering infrastructure projects when using an alliance.     

Development of Lean Model for House Construction Using Value Stream Mapping

Lean construction has recently attracted considerable attention in the home building industry. Lengthy delivery time and significant waste in the construction process have caused many home builders to seek a more effective production model that will increase process reliability, reduce total lead time, and improve quality. However, although housing construction provides the closest analogy to manufacturing, a high level of variability prevents the direct transplantation of lean paradigm and techniques. In collaboration with a local home builder, a systematic approach based on value stream mapping technique is developed in this research to analyze the current process and to formulate a lean production model. The model has four main features: synchronized first-in, first-out lane-based flow, production leveling at pacemaker, work restructuring, and improved operation reliability. A simulation template is built to verify the model and to assist in the development of interim implementation models. This paper presents data collection and value stream selection, current practice analysis, and specific changes proposed for the lean production model.     

CBR Revision Model for Improving Cost Prediction Accuracy in Multifamily Housing Projects

For any construction project to succeed, it is very important to accurately estimate the construction cost during the project’s initial stage. This is why there has been much interest lately in cost prediction models that use case-based reasoning (CBR). It has been pointed out, however, that existing CBR-based cost prediction models may yield inaccurate results even though they could survey optimal similar cases, if the number of cases in the case base is not enough. As opposed to the existing CBR-based construction cost prediction models, this study developed a CBR revision model that reflects the “revise” phase of the CBR cycle (retrieve, reuse, revise, and retain) based on nine multifamily housing projects executed recently by “A” Housing Corporation. To verify the developed model, a case study was performed using three case projects completed by “B” and “C” Housing Corporations. The result showed that the prediction error ratio after the Revise (I) phase decreased from 97.44 to 22.58%. This model can be effective when there are insufficient established cases in the case base.     

AHP-Based Equipment Selection Model for Construction Projects

Selection of equipment for construction projects, a key factor in the success of the project, is a complex process. Current models offered by the literature fail to provide adequate solutions for two major issues: the systematic evaluation of soft factors, and the weighting of soft benefits in comparison with costs. This paper presents a selection model based on analytic hierarchy process (AHP), a multiattribute decision analysis method, with a view to providing solutions for these two issues. The model has the capacity to handle a great number of different criteria in a way that truly reflects the complex reality, to incorporate the context and unique conditions of the project, and to allow for manifestation of user experience and subjective perception. The model was implemented in an in-house developed system that was improved and validated through testing by senior professionals. The main academic contribution of the study is in the modification of AHP to correspond with the nature of equipment selection and in its utilization as an effective means for the formalization of knowledge possessed by competent, experienced practitioners. On the practical side, the proposed model offers an efficient, convenient tool that forces the users into orderly, methodical thinking, guides them in making logical, consistent decisions, and provides a facility for all necessary computations.     

Alternative Concession Model for Build Operate Transfer Contract Projects

This paper develops an alternative concession model for build operate transfer (BOT) infrastructure projects. The concession period is a measure for deciding when the project ownership will be transferred from the investor back to the government concerned; it also demarcates the benefits, authorities, and responsibilities between the government and private investors. Previous studies have developed various techniques and methods, mainly suggesting proper organization structure, contracting procedures, methods of project financing, and risk allocation strategies when BOT-contract projects are implemented. These works have provided effective methodologies for the development of BOT contracts. Nevertheless, it appears that little has been undertaken in studying the way to determine the concession period in a BOT contract. This paper critically reviews the principles of establishing the concession period in a BOT contract. Such a review leads to developing a quantitative model for determining a proper concession period that can protect the interests of both the government concerned and private investors. An example is given that indicates how the alternative model can be applied to determine the concession periods of BOT infrastructure projects.     

Impact of Inspected Buffers on Production Parameters of Construction Processes

This paper examines the production implications of quality control inspections conducted on the buffer between processes in a construction project by modeling the linkage between these processes. Inspection of partially completed work at the end of one activity but before the beginning of work by the next activity is fairly common. Work that is deemed to be of sufficient quality is then made available for the next activity. Work that is deemed insufficient requires rework, typically by the trade appropriate to the activity that fed into the buffer, to bring the work into compliance. This has implications for workload management for that trade, of course, as well as for the reliability of work flow to the successor or downstream processes. While such situations are common in all construction sectors, an example from the residential construction sector was examined via a simulation model augmented by field data collected from residential construction projects. The impacts of the work flow into the predecessor process, the inspection pass rate, and resource availability were examined. The inspection pass rate was found to dramatically affect the reliability of work flow, unless resources are unlimited. Furthermore, the inspection pass rate was found to be functionally related to the production parameters of the process.     

Renovation Projects: Design Process Problems and Improvement Mechanisms

This paper presents a case study of a recent office renovation project. The paper investigates the problems that occurred during the design process, analyzes the causes of design iterations and rework, and proposes changes that can improve the design process. The analysis illustrates two design challenges that cause iterations and rework: (1) preexisting, hidden conditions identified late in the design process, and (2) limitations of downstream systems that were not accounted for in upstream decisions. The recommendations propose mechanisms to reduce design rework and duration, and increase the quality of the design solution. The recommendations are (1) to accelerate the discovery of existing conditions, (2) to identify the project constraints that design and construction have to meet, (3) to select the project team early, and (4) to accelerate the iterative design process with a team-based rapid development of schematic design (rapid prototyping).     

Optimal Capital Structure Model for BOT Power Projects in Turkey

Interest in the Build/Operate/Transfer (BOT) scheme for infrastructure projects has been growing rapidly, and numerous projects have been implemented around the world. Through BOT projects, a government reallocates the risks and rewards in the development of large infrastructure projects to the private sector. One key aspect to the successful implementation of the BOT concept in any country is the raising of finance by project sponsors. Financial engineering techniques and capital structuring skills are required to find the proper mix of debt and equity and to achieve successful financing for the proposed project. The objective of this paper is to present a simplified model to determine the optimum equity level for decisionmakers at the evaluation stage of a BOT hydroelectric power plant (HEPP) project in Turkey, which takes place immediately after the completion of the feasibility study. The resulting model is the combination of a financial model and a linear programming model that incorporates an objective of maximizing the return of the project from the equity holder’s point of view. To show versatility of the model, a real case study is conducted. Thus, this research is concerned with the determination of an equity funding level in BOT project finance. There are different equity levels found in BOT HEPP projects, and there is a need for such a model to determine optimal capital structure, which would assist the project sponsors to ensure that the equity level necessary for optimal capital structure is available prior to the project implementation stage.     

Production System Loading–Cycle Time Relationship in Residential Construction

Production home building possesses characteristics similar to manufacturing processes, such as the construction of more or less similar houses repeatedly and a growing demand for mass customization of homes. As a result of these similarities, larger homebuilders often attempt to view their production system as an assembly line process. However, the management tools generally utilized by these home builders are those used in other sectors of the construction industry, such as critical path method scheduling, cost estimating, and earned value analysis. These management tools do not provide an explanation or control/prediction tools for many undesirable situations that arise during home building, such as increasing cycle time which slows delivery of product to consumers and increases project capital costs, and increasing amounts of work in process that increases capital investment and thereby decreases company financial performance. In order to bring better management tools to the residential construction industry, this study examines relationships between cycle time, work in process, system throughput, new construction starts, and the capacity of the production system using building permit data for new single family homes in Chandler, Ariz. The applicability of Little’s law, a basic equation used in factory production management models, to a residential production system is examined. This study shows a definite, predictable relationship between cycle time, work in process, and production system throughput. It provides a pathway for further study of production system characteristics that have historically not been included in construction management models, with the expectation of developing new construction management tools that will account for more of the characteristics of construction production systems that affect project performance and company financial performance.     

Integrating Neurofuzzy System with Conceptual Cost Estimation to Discover Cost-Related Knowledge from Residential Construction Projects

Cost estimation during early stage of a building construction project plays an important role for feasibility analysis in the planning and design phase. Traditional knowledge-based approaches suffer an essential difficulty due to resource price fluctuation in the market. This paper presents a hybrid method that integrates the principal items ratio estimation method with the adaptive neurofuzzy inference system for mining of cost estimation data. The proposed method provides exceptional capability for mining estimation knowledge that is difficult to be discovered by traditional knowledge-based approaches. A case study of residential building projects in China is conducted to demonstrate the proposed method. The testing results show that the proposed method does not only achieve high estimation accuracy, but also provide desirable features for estimators, such as explicit fuzzy decision rules and graphical presentations.     

Selection of Project Delivery Method in Transit: Drivers and Objectives

This paper describes the results of research on alternative project delivery methods in transit projects in the United States. The research, sponsored by the Transit Cooperative Research Program, aimed to identify those factors that drive the decision in the choice of project delivery method. A rigorous case study analysis based on on-site structured interviews with the directors of several transit projects was used to identify decision drivers and the rationale behind the delivery method selection decision in transit agencies. The nine case studies conducted in this research represent a cross section of delivery methods, including design-bid-build/multiprime, construction manager-at-risk, design/build, and design/build-operate-maintain. The interviewees agreed that the use of alternative delivery methods have resulted in savings in schedule and cost for transit agencies. The research also found that achieving aggressive schedule compression is the most influential factor when selecting alternative delivery methods. Also, implementation of a formal risk analysis as part of the project development process appears to improve the project’s chances of meeting budget and schedule objectives.     

Effect of Delivery Methods on Design Performance in Multifamily Housing Projects

Existing studies on the performance evaluation by the delivery method generally indicate that the design build (DB) method is superior to the design-bid-build (DBB) method in terms of construction duration, cost, and quality. As opposed to the performance of construction duration and cost, where quantitative evaluation is relatively possible, most performance evaluations of quality are based on interviews with the owners. Therefore, this paper aimed at evaluating the level of design performance to conduct a quantitative evaluation on the performance of quality. To achieve this goal, this paper analyzed the impact of delivery methods on design performance in terms of the quantitative evaluation based on the case studies analyzing construction drawings and specifications of public multifamily housing projects delivered through the DB and DBB methods since 2000. The Delphi and analytic hierarchy process methods were used to develop objective standards and contents for evaluating the design performance. An analysis of variance test was conducted to analyze which delivery methods would have an effect on the design performance. Construction industry practitioners can use the results of this study in selecting a delivery method appropriate to the project characteristics.     

Drivers for Cost Estimating in Early Design: Case Study of Residential Construction

This paper proposes the use of a series of independent variables for an early estimation of the building construction cost of residential buildings. Based on 70 German residential properties, these variables serve as the cost drivers of a project, and the regression model, tested against the 70 properties, has a mean absolute percentage error of 9.6%. When applied to predict the cost of five more properties that were excluded from the 70 in the regression model, the percentage error ranges between–12 and 13%. The identified cost drivers are: compactness of the building, number of elevators, size of the project, expected duration of construction, proportion of openings in external walls, and region.