Lean Principle - Value Stream

A contractor’s value stream is every step required to take raw materials and information then deliver a completed project to the waiting hands of a customer.

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A deep understanding of this value stream at various levels of detail down to actual installation steps is the foundation upon which major productivity improvements can be made.  

Field Productivity: Lean Principle - Value Stream.

As an example consider every step required to put lighting in a conference room - these are just the highlights:  

  • Initial design requirements
  • Quotes from distributor for estimating
  • Submittals and approvals
  • Ordering, tracking and receiving
  • Moving around jobsite to work area
  • Installation
  • Inspection
  • Training of the customer
  • Punch list

This is the highest level and if you mapped out each of those in another 5-25 steps you would start to see a clear picture of what it really takes to install a light fixture in a conference room.  

Start at the highest level - what can be cut out, reduced or sequenced differently?  

Look at the details - can you use 2 screws instead of 4?  50% cost savings at that step! 

Remember that the customer just wants light - could a skylight or more windows reduce the lighting need at the design stage?  


Labor Productivity Workshop


Labor Productivity
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Labor Productivity
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Change Management Workflow
For contractors to manage changes effectively, they must understand the entire change management workflow up through the project owner’s approval and payment process.
Integrating Metrics and Organizational Structure
Having a high-level scoreboard for a contractor is just the beginning. The much more valuable part is breaking these high-level scores down into specific and prioritized metrics at each level within each functional area of the organization.
Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow
If you effectively manage the startup and the close-out of the project, then the execution in-between mostly takes care of itself.