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2014 | Buch

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Lean Construction Management

The Toyota Way

verfasst von: Shang Gao, Sui Pheng Low

Verlag: Springer Singapore

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

The book presents a mixed research method adopted to assess and present the Toyota Way practices within construction firms in general and for firms in China specifically. The results of an extensive structured questionnaire survey based on the Toyota Way-styled attributes identified were developed and data collected from building professionals working in construction firms is presented. The quantitative data presented in the book explains the status quo of the Toyota Way-styled practices implemented in the construction industry, as well as the extent to which these attributes were perceived for lean construction management. The book highlights all the actionable attributes derived from the Toyota Way model appreciated by the building professionals, but alerts the readers that some attributes felled short of implementation. Further findings from in-depth interviews and case studies are also presented in the book to provide to readers an understanding how these Toyota Way practices can be implemented in real-life projects. Collectively, all the empirical findings presented in this book can serve to enhance understanding of Toyota Way practices in the lean construction management context. The readers are then guided through to understand the gaps between actual practice and Toyota Way-styled practices, and the measures that they may undertake to circumvent the challenges for implementation. The book also presents to readers the SWOT analysis that addresses the strengths, weaknesses, opportunities and threats towards the implementation of the Toyota Way in the construction industry. The book prescribes the Toyota Way model for use in construction firms to strategically implement lean construction management. The checklist presented in the book enables readers to draw lessons that may be used additionally as a holistic assessment tool for measuring the maturity of firms with respect to their Toyota Way implementation. Consequent to this, management would then be in a better position to develop plans for Toyota Way implementation by focusing on weak areas, strengthening them, and thus increasing the likelihood of success in the implementation of the Toyota Way. In a nutshell, this book provides a comprehensive and valuable resource for firms not only in the construction industry but also businesses outside of the construction sector to better understand the Toyota Way and how this understanding can translate to implementation of lean construction/business management to enhance profitability and survivability in an increasingly competitive global market place.

Inhaltsverzeichnis

Frontmatter

1. Introduction

Abstract

The construction industry in China is in a period of rapid expansion, witnessing a steady growth rate of 10 % in recent years. The latest statistics released by the National Bureau of Statistics of China (NBSC 2011) indicate that the construction sector contributes 6.7 % to the Chinese Gross Domestic Product (GDP) (RMB 40.12 billion) at the end of 2010 and will continue to play a significant role in expanding the Chinese economy. However, within China, the construction industry is still perceived as one of the less developed sectors and has a public image of producing low-quality products (Chen 1998; Lam and Cheng 2004; China Daily 2010a) with low productivity (Xue et al. 2008; Xu et al. 2005), low profit margins (China Daily 2010a; Cheah et al. 2007), and poor on-site working conditions (Lu and Fox 2001). Hence, there is a great need to help the industry improve its competitiveness, change its image, and contribute to the national economy.

Shang Gao, Sui Pheng Low

2. Production Management

Abstract

Production and operations management (POM) is the management of the production process by which goods and services are made. Research on production management can be found in a large and growing volume of literatures. However, in most POM textbooks (see Gaither and Frazier 1999), it appears to have been repeated on a few topics, the application of methods and frameworks. In recent years, POM research embraces a number of concepts derived from Japanese automobile industry. According to Filippini (1997), Just in time (JIT) and Quality Control (QC)—two building blocks of the Toyota Production System (Ohno 1988)—are becoming two key areas of production and operations management discipline. Moreover, some non-manufacturing industries such as construction are encouraged to emulate the managerial practices proved in manufacturing with the hope of gaining similar benefits (Egan 1998). In this respect, it must further be understood the manufacturing industry and its production management. In this chapter, the first part of the literature review is presented with an effort to cover a number of things. Firstly, this chapter starts with reviewing production management from a systematic perspective, mainly regarding its definition and elements. Secondly, this chapter adopts two approaches to study theoretical aspect of production. One is to search a “theory” of production through economics lens (e.g. Coombs et al. 1987; Perloff 2001), the other way is to review production in production management discipline, in which this study largely draws on Koskela’s (1992, 2000) study. Lastly, as Chase and Aquilano (1992) emphasized the need to put management back into production management, it infers that reviewing production management cannot be isolated with its managerial aspect. Moreover, Toyota Way is a management philosophy used by Toyota (Liker 2004). Hence the most important schools of thought within managerial theory in general are reviewed.

Shang Gao, Sui Pheng Low

3. From Lean Production to Lean Construction

Abstract

The last few decades have witnessed three major phases or paradigm shifts of industrial production in the modern world (Womack et al. 1990; Smith 1992). These phases are generally concluded as craft production, mass production and lean production. Shook (1998) highlighted that the concepts such as mass production and lean production reflect ways of thinking about production within particular cultures and eras rather than simply focus on production systems. Moreover, these production paradigms can be related easily to the automobile manufacturing factories, where they are created, exercised and eventually evaluated to the next phase. The first part of this chapter provides a history of evolution of production practices and philosophies through the automobile manufacturing industry from the craft production era to current lean production. The differences in production philosophies, their limits, and their impacts in the construction industry are also reviewed. The second part of this chapter attempts to answer the following question: Can the success of lean principles be replicated in the construction industry? A number of scholars hold positive attitudes towards this proposition (including Koskela 1992, 2000; Ballard 2000). To address this issue, it starts with brief discussion of the peculiarities of construction that differentiate that industry from manufacturing industry. The following discussion covers the terminology of lean construction, along with its principles, tools, and implementation frameworks, as well as criticisms of it. It also sheds light on governments’ roles in promoting lean construction in Western countries and outlines a few cases of lean practices that have emerged in developing countries.

Shang Gao, Sui Pheng Low

4. The Toyota Way

Abstract

Toyota is worthy of in-depth study because the company is good at manufacturing (Liker 2004; Sobek and Smalley 2008). Every automotive insider and many consumers are aware of and familiar with Toyota’s stunning success in terms of its reliable products, high productivity and increasing profitability every year (Liker 2004). Toyota became the world’s leading auto manufacturer with approximately 15 % of the global market share in 2005. Toyota’s market value (US$177 billion in 2005) exceeds the combined value of General Motors (GM), Chrysler, and Ford (Morgan and Liker 2006). One reason for this success is the quality of Toyota products. According to the recent U.S. Vehicle Dependability Study published by J.D. Powers and Associates (2013), Toyota motor models earn seven segment awards for higher quality and less problems experienced by car owners. Moreover, Toyota is the most productive company, according to the Oliver Wyman’s (2008) Harbour report on the North American automobile industry. Toyota and Chrysler led the six largest multi-plant auto-makers in total manufacturing productivity, averaging 30.37 labour hours per vehicle (GM averages 32.29 h per vehicle, while Ford averages 33.88 h per vehicle). It is worth noting that Toyota fabricates and assembles a greater percentage of its vehicle parts with its own employees, while the big Three (GM, Ford and Chrysler) purchase many modules and subassemblies from suppliers, thus saving labour. Although productivity gains are essential to a company’s success, it is profitability that keeps the business growing. According to Oliver Wyman (2008), Toyota earned US$922 pre-tax profits per vehicle produced in North America in 2007. In contrast, Ford, GM and Chrysler lost US$1,467, US$729 and US$412, respectively.

Shang Gao, Sui Pheng Low

5. Theoretical and Conceptual Framework

Abstract

This chapter aims to explain the theoretical support from the mainstream theories towards these 14 principles. In order to better understand the Toyota Way model, each individual layer (i.e. Toyota philosophy, process, people/partner and problem-solving) will seek the theoretical support from the mainstream theories. The theory of the business, production theory, different schools of management thinkings, and theory of quality management seem to be relevant and can be used as the theoretical sources.

Shang Gao, Sui Pheng Low

6. China’s Construction Industry

Abstract

China has demonstrated an astonishing economic growth capability to the world. Since the introduction of the open door policy, China’s Gross Domestic Product (GDP) growth has amounted to over 8% annually in recent years (National Bureau of Statistics of China 2011). This economic success cannot be achieved without contributions from infrastructural and urban development, or without rapid growth in the construction industry. According to National Bureau of Statistics of China (NBSC 2011), the construction industry in China has accounted for approximately 6% of GDP since 2006. Employment in the construction industry also accounted for about 7% of the total permanent employment in the urban areas of China. A characteristic of China’s construction industry is the large share of labour-only subcontracting, often on the basis of individual self-employed labourers from rural areas of China. As NBSC (2011) noted, by the end of 2010, there were 71,863 registered firms employing 41.6 million people in the construction industry, excluding the labour subcontractors. This created a total output of 9603.1 billion RMB (approximately US$1538.6 billion). Statistically, these figures clearly indicate the leading position of the construction industry and its enormous achievements. However, its performance over the past several years still suggests that the industry faces serious difficulties.

Shang Gao, Sui Pheng Low

7. Research Methodology

Abstract

This chapter explains the choice of research methodology for this study. It begins with an overview of the general approach and methods used in the research. As the focus of the research is on investigating Toyota Way-styled practices within large Chinese construction firms, the methods commonly applied to lean construction studies are discussed. The choice of the mixed research method is justified as an appropriate research strategy. The determination of the study sample and the techniques of data collection are also described.

Shang Gao, Sui Pheng Low

8. Survey Data Analysis

Abstract

This chapter is structured according to research objectives two and three, and presents the findings and results of the survey, in particular concerning the extent to which Toyota Way-style practices are implemented by LCCFs. The survey questions are provided in Appendix A. Each of the 14 principles of the Toyota Way is denoted by the abbreviations Principle 1 (P1) to Principle 14 (P14). A distinct scale, containing 5–9 actionable attributes or practices, was included in the survey for each Toyota Way principle.

Shang Gao, Sui Pheng Low

9. Interview Findings

Abstract

This chapter presents the interview findings to explore in more depth the survey questionnaire responses that concern the extent to which the Toyota Way practices have been practised. Interviews allow a detailed investigation of each interviewee’s perspective to gain an in-depth understanding, for example, of their perceptions on the adoption of the Toyota Way-style practices in China’s construction industry. For some practices not yet implemented, the interviews also seek to understand the barriers to their implementation. It should be noted that the purpose of the interviews was not to validate the framework but to supplement the survey findings present in the preceding chapter.

Shang Gao, Sui Pheng Low

10. Case Study

Abstract

This chapter presents the results of three case studies conducted in selected Chinese construction firms. Section 10.2 describes how the cases were selected. An evaluation of the three cases is presented in terms of their experiences implementing Toyota Way-style practices.

Shang Gao, Sui Pheng Low

11. Discussion and Validation

Abstract

This chapter uses SWOT analysis to discuss the results presented in Chaps. 8–10. The discussion in this chapter reinforces what the findings from the earlier chapters suggest, and how the research results relate to the literature review. The implications and strategies for LCCFs are also included. This chapter ends with a validation of the strategies proposed.

Shang Gao, Sui Pheng Low

12. Conclusions

Abstract

This final chapter presents an overall summary of the study. It starts with describing how the aims and objectives of the research have been met, along with the major conclusions and potential contributions to both theoretical and managerial practices that arise from the research. The limitations of the study, along with recommendations for construction firms and the Chinese construction industry and future work are described at the end of the chapter.

Shang Gao, Sui Pheng Low

Backmatter

Titel: Lean Construction Management
verfasst von: Shang Gao
Sui Pheng Low
Verlag: Springer Singapore
Electronic ISBN: 978-981-287-014-8
Print ISBN: 978-981-287-013-1
DOI: https://doi.org/10.1007/978-981-287-014-8