Lean Construction Seminar delivered by Asian Institute of Excellence
Sep 02, 2016 – The first ever Lean Construction Workshop was held at the recent Constructor Exhibition at the BMICH. This was coordinated by the Federation of Chambers together with the National Construction Association, the Young Constructors Forum and delivered by the Asian Institute of Excellence. It was titled ” Bid Lower than your Competitors”.
Sri Lanka’s Lack of Competitiveness
Construction industry plays a major role in the Sri Lankan national economy, contributing 6.8% and showed a growth rate of 20.2 % in 2014 – 15.
Increasing the productivity of this sector will lead to a great cost savings for the industry as well as the society.
In addition, it will enable Sri Lankan contractors to compete with international firms such as Malaysian, Singaporean, Indian etc.
It is imperative that in any industry, the efficiency and effectiveness of projects and of the company are maximized. Today Sri Lanka stands only half way in World Economic Foum Rankings competitiveness Index, at 68 th place out of approximately 140 companies. This ranking broadly also applies to industry in general and the construction sector. In the construction industry, projects run into millions of rupees, if not dollars.
The benefits of using Lean techniques are huge. The application of Lean in Construction has led to the following quantifiable changes: significant (50% or better) reduction in work injuries, elimination of rampant waste, improved quality, completed on time or ahead of schedule, and significant cost savings (up to 20%).
Lean is relatively new to the SAARC region, but has been around since the 1920s commencing with Ford and then popularized by the Toyota Production System.
Today there are various Lean Institutes in the USA, UK, Denmark, France, Russia and India. They share information and experience through academic forums, workshops and Summits.
The Sri Lankan construction industry can obtain huge productivity gains through Lean and other operational excellence tools.
Whilst these tools cannot directly address issues such as labour shortages, high steel prices, delays in government approvals, etc it can enable maximization of productivity of all scarce resources within the organisation, drive down costs, improve profitability and improve time lines.
These operational excellence tools are already being used in India and most of the developed countries and in the Asean region.