7 strategies for a leap in results in heavy construction

Based on the successful lean applications we have taken part in within the heavy construction sector, we have seen that exceptional results are frequently achieved with this approach, such as productivity increases of more than 35%, financial gains of up to 10%, significant reductions in delivery times and greater customer satisfaction. More importantly, lean integrates easily and transforms the way of thinking about the company’s management system, developing internal capabilities and carrying through to all activities and projects.

We therefore have a great opportunity for broader discussion, for deepening knowledge and, above all, for the practical use of the lean system in the sector. Although we already see cases of organizations applying lean concepts with excellent results, as mentioned above, these applications have still been limited, with rare exceptions, to a few projects and to the use of a few isolated lean tools, such as the Last Planner System and line of balance. These tools, of course, already deliver good results, but they are still a small part of the strategic potential that the true lean philosophy can bring. In addition, an effort focused only on tools often ends up fading away without spreading to other projects and to the companies’ corporate areas.

With large projects such as bridges, roads, airports, and hydroelectric, thermoelectric, wind and solar power plants, heavy construction faces a major challenge ahead. On the one hand, there is a consensus that closing the infrastructure gap is an urgent necessity for the country’s development. On the other, a new cycle is emerging, with regulatory frameworks, auctions and greater participation of private investors and contracting parties.

This much more competitive scenario brings growing demands in terms of schedule, cost, quality and ESG (Environment, Social, and Governance). Problems such as delays, budget overruns, rework, etc. remain recurrent, but are increasingly less tolerated.

To overcome these challenges, and based on the transformations we have taken part in, we present below some tips that may be useful for your reflection and application, adapted to each company’s situation.

1. Plan in continuous flow

The first steps in adopting lean in heavy construction lie in the planning processes. Planning becomes the center of everything, aligning financial, supply, logistics, production and people development issues.

In this context, it is necessary to plan all phases in detail (but simply), simulating, step by step, how the entire project will be carried out, considering all the aspects and agents involved.

To do this, planning is “turned upside down” and analyzed from the end to the beginning, making sure that it is feasible to meet the deadlines and taking care to guarantee the start of tasks, not just their completion.

This is what is called “pull” planning, which also has an important characteristic: it is done in a participatory way, involving the teams that will carry out the work, including subcontractors.

Another fundamental difference in lean planning is establishing the required pace for the main sequences of work, leveling the necessary resources. It means changing the question from “How much time is left?” to “How much time do I have for this demand?”. This requires sizing the teams for the required pace and analyzing the interdependencies and conditions of each stage, considering the interaction of all disciplines in that time interval. This is planning in continuous flow.

This is an enabling condition for all the process rationalization that lean establishes, and it is possible even in complex projects with very different elements. It is always feasible to identify actions that are repetitive and to break demands into small batches. From there, it is possible to establish the pace that will govern all the teams, logistics and supplies.

2. Optimize logistics and the entire value chain

If we analyze a heavy construction project, we will see that it generally consists of 70% logistics work and 30% adding and assembly activities. The actions that actually move the project forward do not happen if resources are not available where and when they are needed.

This is where the lean principle of just-in-time applies. The entire supply chain – from planning, purchasing, manufacturing, transportation, pre-assembly, etc. – must follow the pace and sequence of the work fronts. No more, no less.

This brings a large reduction, and even elimination, of inventories, with an enormous positive impact on cash flow and financial costs, as well as minimizing work-front stoppages due to supply shortages.

3. Eliminate waste in every activity

Some people think that lean construction is limited to planning. In fact, although planning in a lean way is fundamental, it is only the beginning. It is also necessary to execute in a lean way.

In this context, the essence of the lean system lies in mobilizing everyone to see how to eliminate waste and add more value in all activities.

Anyone who spends a few minutes observing a work front will be able to see a series of wastes. For example, people and equipment standing idle waiting for materials or for previous work that has not been completed, unnecessary movement or rework, work carried out earlier than necessary, and oversized teams that rush and stop, among others.

This is a real “gold mine”, particularly in heavy construction projects, where most of the labor is hired directly and equipment use represents a significant cost.

Applying quite simple lean tools, such as Value Stream Mapping and Standardized Work, generates productivity increases of at least 30% (and even more in many cases). This brings direct and immediate gains in labor and equipment costs.

For this, managers need to go to the “gemba” (a Japanese expression meaning the place where value is added) to work with foremen and operators and analyze every detail, helping to make field work simpler, easier and safer.

4. Invest in stability and discipline

Imagine a project that has been thought through in every detail: the best way to perform each task while minimizing waste, planning in continuous flow, pull logistics, etc. Everything prepared to work at a coordinated pace, like clockwork, with little inventory and teams performing their work one after the other at each location.

This is the goal of the lean system, and it results in high productivity and strong results. In the real world, however, there are all kinds of variations. For example, a delivery that was late, a team that did not reach the expected productivity, a design detail that was not thought through... All this without considering the inevitable geological and environmental risks.

Traditional thinking tries to protect itself from these variations by creating buffers and inventories and by allocating more resources to recover from deviations and delays.

The lean philosophy, rest assured, also starts from the assumption that variations occur, but it requires completely different attitudes to deal with them.

The lean mindset has as its absolute priority guaranteeing basic stability. This means anticipating and acting preventively to minimize variations, thus ensuring that materials, machines, labor and methods are available at the right times and places.

This ensures that work environments are extremely organized, so that any activity outside the plan or anything out of place is immediately identified and corrected, which is the real purpose, for example, of 5S.

Even with all this, variations can occur, but teams in the lean system have the means to identify deviations and act quickly to correct them through visual management and help chains. To do so, it is necessary to identify the root causes of problems and to plan and carry out countermeasures so that errors do not happen again. That is why daily and weekly planning and control routines, with the famous check-in and check-out, are so important.

5. Adopt a problem-solving culture

If the essence of the lean system lies in exposing and solving problems quickly, this is only possible if the frontline teams are prepared to tackle them immediately, with appropriate methods.

This depends on behavioral factors (for example, a work environment in which people are not afraid to expose problems) and only happens if a culture is established that is directed at analyzing the causes of deviations and improving processes, rather than focused on looking for culprits, as is common.

That is why the lean system is considered a sociotechnical system. In other words, it has social elements, such as changes in mindsets and behaviors, and a technical part, represented by the knowledge and application of tools and methods.

In this sense, the social aspects predominate, because it is no use for a person to have the tools and methods if they lack the right initiative and motivation to use them.

In this context, everyone in the company needs to be transformed into a “problem solver”. There is then a significant increase in deviations being addressed as soon as they occur and while they are still small. This reduces or even eliminates rework and poorly executed activities, increasing quality, safety and productivity.

To support all of this, a management system grounded in leadership is needed. Leadership must be the driving force that will push everyone in the pursuit of perfection in everything they do. This is one of the deepest and most difficult changes, especially in a heavy construction environment, where the traditional “command and control” leadership style is very much present. This change is possible when one seeks to adopt lean routines, mindsets and behaviors until they become new habits.

6. Apply it across the whole company

Using the lean system on job sites, in production activities, is the most evident and immediate way to begin this transformation. This is correct, because it is there, on the job sites, that the value the customer expects to receive is added. However, for the “front end” to work efficiently, the whole company needs to work as a single body.

In fact, on the job site itself, beyond the work fronts, the lean system can bring enormous results if also applied to support activities. Indirect costs are quite high in heavy construction projects. If they are not well managed, they can consume all of a project’s profitability.

Applying lean to administrative activities, known as lean office, brings major productivity gains by simplifying processes, supporting the project more effectively, without bloated structures.

Likewise, in the corporate office, lean is applicable in all areas, such as sales, engineering, planning, procurement, people management and even strategic planning.

Some companies that are advanced in their lean journey apply these concepts and practices starting from the preparation of proposals, managing to offer more competitive schedules and costs and thereby leveraging the company’s growth.

7. Start one step at a time, but think big

If many have already realized that even using a few isolated tools of the lean system on job sites brings significant results, imagine a broader and sustained application, incorporating lean into the company’s competitive strategy, management system and culture.

Most likely, you will start this on a pilot project. It is one thing to apply it on that project, get results and then disband the team. It is something completely different to treat each application as an opportunity for learning, developing capabilities and establishing routines that can be spread to the whole company. That makes all the difference.

Do not miss the opportunity to learn more about lean and, above all, to carry out gradual practical experiments in your company and on your projects. Go step by step, but from the very beginning always keep a bigger vision of where you can get to.