Applying Lean Six Sigma in construction. World practice experience.

Abstract

Background: persistent problems faced across the world by managing and construction companies (increasing construction costs, unsatisfactory level of construction materials quality, lack of coordination and consistency between process participants, decreased profitability of principal contractors, subcontractors and suppliers, failure to meet deadlines and budget deficit, inconsistency and fragmentation of processes) can be eliminated. Objective: a centralized and integrated approach is needed to identify, prioritize, find and eliminate the origin of problems, help to develop effective solutions and manage consequent activities to get necessary results. Methods/approach: foreign experience analysis has proved that both the required approach, the methodology and the problem-solving tools in the construction industry are availablethis is the Lean Six Sigma management methodology, acknowledged as industry leading across the world. Without exaggeration, it seems possible to evaluate the results of Lean Six Sigma methodology practical application as outstanding since they stay ahead of the curve of industry average performance indicators in such developed economies as, for instance, the USA and Great Britain. The Lean Six Sigma methodology is focused on achieving world-class quality by eliminating all types of losses, costs, overhead expenditure and creating value for consumers. Results: to achieve this goal, the Lean Six Sigma deployment affects all construction project participants involved and acting in the common interest -the customer, managing company, principal contractor, subcontractors, product suppliers, equipment suppliers, designers, surveyors. Conclusions: the concept of "Six Sigma" allow in a fairly short time and with own resources to achieve production and services cost reduction, service delivery time reduction, increase in the volume of performed work, decrease of the design cost.

Integration of Six Sigma and simulations in real production factory to improve performance – a case study analysis

“…Six Sigma is a structured approach to solving problems which necessitates highlighting, optimizing or improving the current processes (Wang et al , 2016). Moreover, Six Sigma has several verified success stories in many organizations to guarantee its execution in various areas (Antony et al , 2018; Linde and Philippov, 2020; Liverani et al , 2019; Okonkwo and Mbachu, 2015; Parekh et al , 2020; Singh and Rathi, 2018). Since the inception of Lean and Six Sigma, the number of the organizations adopted Lean and Six Sigma individually during the past 20 years of the 20th century and successfully achieved the improvements in the organizations and realized a positive impact on the firm’s performance (Antony et al , 2017; Sahoo and Yadav, 2018).…”