Applying Lean Six Sigma in construction. World practice experience

Ivars Linde () and Dmitry Philippov ()
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Ivars Linde: Information Systems Management Institute (ISMA), Riga, Latvia
Dmitry Philippov: Information Systems Management Institute (ISMA), Riga, Latvia

Access Journal, 2020, vol. 1, issue 2, 103-111

Abstract: Persistent problems faced across the world by managing and construction companies (increasing construction costs, unsatisfactory level of construction materials quality, lack of coordination and consistency between process participants, decreased profitability of principal contractors, subcontractors and suppliers, failure to meet deadlines and budget deficit, inconsistency and fragmentation of processes) can be eliminated. A centralized and integrated approach is needed to identify, prioritize, find and eliminate the origin of problems, help to develop effective solutions and manage consequent activities to get necessary results. Foreign experience analysis has proved that both the required approach, the methodology and the problem-solving tools in the construction industry are available – this is the Lean Six Sigma management methodology, acknowledged as industry leading across the world. Without exaggeration, it seems possible to evaluate the results of Lean Six Sigma methodology practical application as outstanding since they stay ahead of the curve of industry average performance indicators in such developed economies as, for instance, the USA and Great Britain. The Lean Six Sigma methodology is focused on achieving world-class quality by eliminating all types of losses, costs, overhead expenditure and creating value for consumers. To achieve this goal, the Lean Six Sigma deployment affects all construction project participants involved and acting in the common interest - the customer, managing company, principal contractor, subcontractors, product suppliers, equipment suppliers, designers, surveyors.

Keywords: Lean Six Sigma; construction; integrated supply chain; process cycle time; quality; waste; defects (search for similar items in EconPapers)
JEL-codes: M11 O21 O31 O33 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aip:access:v:1:y:2020:i:2:p:103-111

DOI: 10.46656/access.2020.1.2(2)

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