The World of Construction - Literature review Example

The Egan Report: The Egan Report was introduced into world of construction by Sir John Egan, Chairman of the Construction Task Force in the year 1998. It was this report that created ripples and later on a furor where the construction industry was concerned. The Egan Report intended to change the face of construction once and for all. Despite the countries under achievement in the construction industry in the past decades, it was surprising to note that the United Kingdom (U.K) held its own reservations of “at its best is excellent.”(Egan Report,). However, the Egan Report brought out the genuine characteristics of the present day construction business and challenged the heads of the industry to give up their traditional and counter productive practices and propel its ideology into the 21st century. It urged them to embrace a more productive and customer-centered approach stating that -“propose to initiate a movement for change in the construction industry, for radical improvement in the process of construction. This movement will be the means of sustaining improvement and sharing learning” (Egan Report, 1998,). According to the Egan Report - “We have identified five key drivers of change which need to set the agenda for the construction industry at large: committed leadership, a focus on the customer, integrated processes and teams, a quality driven agenda and commitment to people” (Egan Report, 1998,). The report does not pin point the areas that lack in the industry but it rather systematically categorizes the different sectors for improvement and re-vamping. In order to achieve this, the industry has to undergo a total transformation as such by re-inventing itself for its progress not only within its own market but more importantly globally. It urges the working class in the industry not to sit on their laurels but to undergo additional training and experience to achieve the high level of efficiency set down by the Egan Report. The fact of the Egan Report still remains, that it would prove successful only if the whole industry works in tandem holding the same lofty vision as laid down in the report. The economy will have a good boost in growth if the industry is open to new approaches, practices and theories. A Literature Review: In his Report to the Deputy Prime Minister on the improvement and efficiency of the U.K construction industry, Sir Eagan expressed – “We look to the Government, as the largest client, to join us. But, we are also issuing a challenge to the construction industry to commit itself to change, so that, working together, we can create a modern industry, ready to face the new millennium.” Egan in his report identified five key drivers of change that would set the agenda for change. 1 committed leadership, 2) a focus on the customer, 3) integrated processes and teams, 4) a quality driven agenda and 5) commitment to people. (Paragraph 17) The ambition of the Task Force was to bring about a Radical change in all the industries and by their experience bring about efficiency and improvements within the construction environment which would benefit all. (Paragraphs 15, 16 and 18) Their targets included a reduction of construction cost and time by 10%, a reduction of defects by 20% per year, decent and safe working conditions and improvement of managerial skills at all levels. (Paragraphs 23, 26, 53 and 61) The Task Force invited the Government to join hands in leading public sector bodies towards the goal of seeking the best improvements in efficiency and quality through the methods proposed by them. (Paragraphs 86 and 87) The Construction Industry of U.K: Construction in the U.K is one of the pillars of the domestic economy and its ingenuity and flair for design is applauded not only there but also overseas. The industry is extremely flexible and boasts of a work force that is adaptable to work in the harshest of conditions. It also possesses the capability to deliver the most innovative and difficult projects than any other construction industry in the world. Never- the- less the U.K Construction industry is not without its problems and therefore has a need for a “Radical Change”. It faces problems like very marginal rate of profitability; very little money is pumped into research and development using modern technology, then there is a dearth for skilled labor as not much importance is given to training; fragmentation that inhibits improvement and progress and last but not least, the clients who unabashedly equate price with cost. Therefore the final outcome is that the construction industry fails to meet the standards that are expected and falls short of the competition in the International market. A Sea of Change: With this vision in mind and after implementing the methods laid down by the Egan Report, it is clearly seen that there has been a steady increase in efficiency as well as quality and production, using limited but sufficient resources. It is evident that successes come from a background of rising world class standards. The Primary fundamentals in the processes led to these changes. These drivers of change are of great consequence not only to the construction business but to any other business concern. The following are the drivers responsible in bringing about this radical change- The Drivers of Change: Leadership: The Management and other officials are committed to driving forward an agenda for the improvement of the whole organization. Focus on the customer: The best companies are customer-centered and it strives to ensure that the customer receives good value for his money. Integrate the process around the team and around the project: All successful enterprises never fragment their operations; instead they focus on the customer’s needs and the value of the product. A Quality driven agenda: Here quality entails time and budget management, after sales care with reduced costs. Quality also means “the total package” which offers more than the customer’s expectations and provides real service. Commitment to people: It ensures fair wages, safety and health care, decent working conditions, commitment of good development and training to managers, supervisors and others, respect for work as well as workers and a culture based on mutual interdependence and trust. The construction industry’s representatives of the Task Force had this to say after visiting Nissan in the U.K to see the advanced approach in production -“we see that construction has two choices: ignore all this in the belief that construction is so unique that there are no lessons to be learned; or seek improvement through re-engineering construction, learning as much as possible from those who have done it elsewhere”. The major clients represented on the Task Force have systematically agreed to take the lead by demonstrating their own commitment in improving performance based on the ideas and tools set out by them. Success despite setbacks: Watton Green, a stylish development was developed by Prime Focus in partnership with Castle Vale Housing Action Trust. Its project coordinator Penny Downing had this to say - “Our experience in Castle Vale has made us appreciate how important the Egan principles are and we are committed to look at other innovative methods.” The Parliamentary Office of Science and Technology, when speaking of the Modern Methods of House Building stated - “a steep change in the construction industry to produce the quantity and quality of housing we need.” Modern Methods of Construction: (MMC) During the 20th century, approximately 1 million houses were built in times of heavy demand. Initially, problems arose about defective building material and poor workmanship. This consisted of pre fabricated material used to build homes, hospitals, hotels and schools. MMC now stands as a new term reflecting major improvements in fabrication and construction methods. It also includes innovative methods such as concrete moulds and materials like steel, wood and concrete. Advantages of using MMC: Both the Government and manufacturers suggest that the main advantages of MMC are- Economic: Typically, MMC houses have fewer defects and can be built very quickly. Environmental: The houses are more energy efficient, involve less transport of materials and produce less waste. Social: During construction, there may be fewer accidents and lesser impact on local residents. The Current trend of MMC: The government and industry sponsored “Rethinking Construction” programme has been encouraging the use of MMC, but still research is going on about the relevant benefits like cost, quality, environmental benefits and public acceptance. On the International front, countries like Japan and other European countries like Scandinavia and Germany are all using MMC. Some of the reasons for the greater use of MMC are that the materials are easily available, employs quick construction which avoids disruption to neighbors and allows early occupancy. Lean Construction: The generic version of the Toyota Production System is called Lean Production. It is recognized as the most efficient production system in the world today. It was started in 1997 and it lays down and describes the core principles underlying this system that can also be applied not only to the construction business but to every other business activity – from designing new products and working with suppliers to processing and implementing orders from customers. Using the Tool Box of Lean techniques, the work is distributed in such a way that all the processes are organized to flow through all the value added stages without obstacles or interruptions. As this takes place, the areas of wastage are removed and this finally leads to perfection. The philosophy of Lean Construction is based on Lean Manufacturing whose main aim is to profitably deliver the goods that a customer needs through improving and managing its construction process. It has been successfully implemented and has gained considerable success from the American, Japanese and European Manufactures. The Lean Principles: Lean Construction strictly follows certain principles that have enhanced its success. They are – Eliminate waste Specify precise value from the customer’s point of view. Clearly identify the value stream and eliminate the non-value processes. Allowing free flow of value added steps without interruption. Allowing customer pull – i.e. not making anything that is not needed, but when needed making it quickly. Pursue perfection through continuous development and improvement. Gregory Howell and Glen Ballard on Lean Construction: In the late 1980’s, the civil engineer and Executive Director of Lean Construction institute of Idaho, together with Research Director Glen Ballard began to investigate the working of Project Planning Systems. Since they found the system to be lacking they saw good potential in applying the work of Lauri Koskela, a researcher with VTT Building Technology in Espoo. Koskela recommended that the construction theory should focus on optimizing the flow of activities with creative ideas and delivery of value. The key element of Lean Construction is the “Last Planner” system of production control.It is the responsibility of the Last Planner to create only “quality projects”. A Linbeck Vice President, Ed Beck stated – “However, most design and construction problems, inefficiencies and wastes result from breakdowns in the flow of activities”. Therefore to sum it up, Lean Construction has made excellent progress in the construction Industry and is still gaining fame as it spreads far and wide to other countries. References: Building Design and Construction Lean Construction Boosts Productivity By Gordon Wright, Senior Editor, December 2000 Constructing Excellence, Lean Construction, 28/10/2004 Published by Constructing Excellence T 0845 605 55 56 E-mail helpdesk@constructingexcellence.org.uk www.constructingexcellence.org.uk Department of Trade and Industry 1 Victoria Street, London, SW1H 0ET All enquiries relating to the copyright in the work should be addressed to, HMSO, The Licencing Division, St Clements House, 2-16 Colegate, Norwich NR3 1BQ © Crown Copyright 1998 URN 03/951 The Housing Forum, 108-110 Judd Street, London WC1H 9NT Tel: 020 7691 0220 Fax: 020 7813 3060 E-mail: team@thehousingforum.demon.co.uk Website: www.thehousingforum.org.uk Innovation Case History Castle Vale, Birmingham The Housing Forum – Re-Thinking Construction, April 2001 Parliamentary office of Science and Technology Modern Methods of House Building December 2003, Number 209 Parliamentary Copyright 2003 The Parliamentary Office of Science and Technology, 7 Millbank, London SW1P 3JA Tel 020 7219 2840. www.parliament.uk/post Read More