Lean principles graphic

Improve profits with lean construction

Operations, Profitability

In times of tighter demand for building services margins can be further squeezed as more companies chase less opportunities. Any profit “fat” in the system quickly disappears and the risk of loss generating projects increases. Adopting lean construction principles can provide a practical framework for addressing this challenge, helping businesses improve efficiency, reduce waste, and enhance profitability. Originating from lean manufacturing practices pioneered by Toyota, lean construction focuses on maximising value while minimising waste — a philosophy particularly beneficial for smaller operations seeking to gain a competitive edge.

Understanding Lean Construction….

Efficiency Through Better Technology

Operations, Technology

In the battle to improve field profitability there is an important debate to have. Do you focus primarily on Productivity or Efficiency? Although both terms seem similar there is an important difference and one that will shape your overall business response, depending on which one you focus on.

Productivity is all about packing in the maximum output in a given time. It has a quantity focus. Efficiency focuses on looking at a fixed amount of work (in a project for example) and aiming to do it with less wasted time. It has a higher weighting on quality. The ultimate situation of course is to achieve BOTH increased productivity and increased efficiency, but it’s a fine balance to get right.

Most of my clients aren’t in the mass production market segment and so focusing on improving efficiency first makes more sense. There are many ways to improve efficiency but one strategy that is easier to implement now than it ever has been is through better use of technology.

With a lever you can move the world

Operations, Systems for your business

The lever I am referring to in this instance are well documented SYSTEMS. Systems won’t replace people, but they provide the levers for them to do their jobs more efficiently and more effectively; time and time again, with less interference from you, the business owner.

Great systems without documentation however, are only rumors about the way you do things in your business. A procedure without clear directions is little more than an assumption about the way things should be done.

Without documentation, all your tasks, functions, processes, and procedures – the way that you and your staff habitually do everything – are nothing more than good intentions.

In other words, you need to write it down.