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This is to certify that thesis titled Implementation of Lean Six Sigma in Indian
Construction is a bona-fide record of work done by Ravi Jain (Entry No2013 CET2150) to
the department of Civil Engineering, Indian Institute of Technology, Delhi, India. He has fulfilled
the requirements of this thesis, which to the best of my knowledge has reached the required
standard. This thesis is carried under my supervision and guidance and has not been submitted
else-where for the award of any other degree.
ACKNOWLEDGEMENTS
I take this opportunity to express my sincere gratitude to my supervisor Dr. Kumar Neeraj Jha,
Department of Civil Engineering for his guidance, support and continuous encouragement
throughout the research.
I also express my extreme gratitude to Mr. Harsh Raghuvanshi and Mr. Dilip A Patel, Research
Students for help in research plans and obtaining contact details of the construction
professionals.
I am extremely thankful to all the construction professional who provided their valuable time to
fill the questionnaire.
I am thankful to all my friends who have helped in the research.
Ravi Jain
2013CET2150
ABSTRACT
Construction projects are facing are large cost and schedule overruns in India. This can be
attributed to different types of waste in the industry. It is necessary to understand nature of waste
and causes of waste in Indian construction and then find suitable tools to eliminate or reduce
them. The Lean Construction and Six Sigma can provide such tools.
The purpose of the research is to analyze the wastes in the Indian Construction, the awareness of
Lean and Six Sigma and the extent of use of Lean and Six Sigma tools. The research also tries to
access the possible ways of interaction of Lean and Six Sigma.
In the research work a questionnaire has been prepared according to research objectives and sent
to construction professionals. The responses will be analyzed and practical framework for the
implementation of Lean Six Sigma will be developed.
The research will help the construction industry to systematically address the wastes and
maximize value provided to the customer.
CONTENTS
Certificate.2
Acknowledgement...3
Abstract........4
Table of Contents.5
List of tables.7
List of figures...8
Abbreviations.......9
1 Introduction.10
1.1 Research need.......10
1.2 Research Objectives.........10
LIST OF TABLES
Table1-1: Research Methodology......11
Table 2-1: Type of Wastes.13
Table 2-2: Top 10 Types and Causes of Waste in Abu-Dhabi
Industry14
Table2-3: Basic Six Sigma Conversion Table to DPMO .....................19
Table3-1: The research objectives and question format in the questionnaire...24
Table 3-2: Type of waste and causes of waste used in the questionnaire survey of the project25
Table3-3: Identification of Possible ways of interaction of Lean and Six Sigma.. .26
Table3-4: Cronbach alpha and internal
consistency...27
LIST OF FIGURRES
Fig. 2-1: Cause and Effect Diagram..20
Fig. 2-2: Lean Project Delivery System and Six Sigma21
Fig.2-3: Concept of Six Sigma integrated approach with lean construction.22
Fig.4-1: Profile of the construction professionals ....28
Fig.4-2: Familiarity with Lean Construction in Participants 29
Fig.4-3: Familiarity with Six Sigma in Participants 29
ABBREVIATIONS
DPMO
JIT
NVA
TFV
VA
VSM
INTRODUCTION
To understand the acceptability and suitability of the tools and techniques of Lean
Construction and Six Sigma in the Indian Construction.
To access the current level of application of Lean Construction and Six Sigma in India.
To understand how Lean Construction and Six Sigma can interact together for Indian
Construction and suggest a framework for implementation of Lean Six Sigma.
Description
1. Literature Survey
2. Questionnaire Survey
3. Data analysis
Statistical analysis
11
LITERATURE STUDY
2.1 INTRODUCTION
This chapter describes the concepts of waste, Lean Construction, Six Sigma and Lean Six Sigma.
It provides an explanation of the tools and techniques of Lean and Six Sigma from the literature
study. It also provides the case studies and frameworks for implementation of Lean and Six
Sigma in the construction industry by various authors.
2.2. LEAN CONSTRUCTION
2.2.1 Introduction
Lean Construction is inspired from the Toyota Production. Toyota production provided the
Transform -Flow Value(TFV) philosophy of production in 1950s.(Koskela, 1992).According
to this philosophy the production is not only transformation of the inputs to outputs but there
exists a flow of resources and information which seeks to generate the value to the customer.
The value of a process is defined as the requirements of the ultimate customer of that process.
This production system identified that it should reduce the share of waste in order to establish
flow. Waste is defined as non-value adding activity or process. Non-value adding element is
defined as the activity which consume time, resources and space but not create the value to the
customer.
Koskela (1992) presented that TFV theory can be applied to construction. Construction is not
only conversion of building materials to standing structures but there is a flow of material and
information to provide value to the customer. (Abdelhamid, 2003)
Lean Construction is defined as the removal or minimization of waste that would result in better
work flow.(Abdelhamid, 2003; Koskela, 1992).
2.2.2 Waste
Lean concept is focused on identification of waste(Chaturvedi, 2013) .Waste is defined as the
non-value adding element of the construction.
Activities in construction has been defined of two types, namely, value adding (VA) elements
and non-value adding elements (NVA). Value adding elements are defined as the activities
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which use material and information and convert into value to the customer. Non value adding
elements or waste is defined as the activities which use resources, efforts, time, space and cost
but do not add value to the customer. Value is defined in the relation to the customer. For a
building contractor or constructor the customer can be the purchaser of the building. The
requirements of the cost, time, quality and other desired characteristics of the building by the
purchaser is defines as the value. For a designer the customer is the contractor and
constructability may be a value for the customer (Koskela, 1992).Toyota Production categorized
wastes in seven types(Howell, 1999). Liker (2004) added one more type of waste, unused
creativity of the worker, in the list. The Description of these wastes has been given in the table 21. All the wastes have been defined to relation to the construction context.Table 2-1 :Type of
Wastes(Howell, 1999; Liker, 2004)
Type of Waste
Description
1.
Waiting
2.
Overproduction
3.
Rework
4.
5.
6.
7.
8.
Unnecessary
Movement
Over
processing
requirement in an activity.
Excess
Inventory
inventory.
Excess
Transport
of material.
Unused
It is due to not being able to involve all the employee to use their
Employee
Creativity
13
Al-aomar (2012) identified 27 types of construction wastes in the Abu Dhabi Construction
industry and identified the 18 causes of theses wastes in the construction industry.
Top 10 Types of waste and causes of these waste identified are presented in Table 2-2.
Table 2-2: Top 10 Types and Causes of Waste in Abu-Dhabi Industry (Al-aomar, 2012)
Type of Waste
Cause of Waste
Repair Work
Bad Workmanship
Equipment Breakdown
Wait Periods
Work Defects
Poor/Bad Supervision
Damaged material
Work Interruptions
Weather Conditions
Chaturvedi (2013) identified the major causes of waste in the Indian construction industry. The
wastes identified were in the order of occurrence were frequent changes in the design , changing
customer requirements , unnecessary movement of materials and equipment ,defects, poor
planning ,poor planning ,defective , unclear information, excessive management control,
frequent shortage of material.
Chandrasekar & Kumar ( 2014) tried to categorize the wastes in the Indian construction related
to resources, management, operation, procurement and manpower.
The questionnaire survey has been prepared with these types of wastes and causes of these
wastes identified from the previous research done. Appendix represents the wastes in the
construction. Table 2-3 provides the type of wastes and causes of wastes used in the
questionnaire survey.
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Value: The organization should identify and maximize the requirements of the customers or
value.
Value Stream: Value stream is defined as the identification of all the value adding elements.
The organization should focus on value stream.
Flow: The organization should strive to achieve steady and uninterrupted flow of material
and information.
Pull: The production system should be driven by the customer demand. Just-in Time (JIT)
approach is the adoption of the pull approach.
Perfection: After applying the first four principles of lean construction the organization
should evaluate the performance and improve the process to obtain perfection.
15
5S System
5S system is a system of workplace organization which improves efficiency. The 5S are as
follows:
1S Sort: It is the segregation of what is needed, not needed and needed later. Remove what is
not needed. Arrange the needed according to frequency of use.
2S-Staraighten: It is arrangement of the items so that they are easy to locate.
3S-Shine: It is the regular cleaning of the items to remove dust and grease.
4S-Satndardize: It is the adoption of all the best practices throughout the place.
5S-Sustain: It is continuous recognition of improvement and set high standards to sustain
practices.
5S provides efficiency of the operations and reduce waste such as waiting, excess motion,
accidents by improving work environment.
JIT (Just-in-Time)
Just in- Time is defined as the delivery of material, equipment, products, execution of an
activity, when the customer or the next activity is ready to receive them. JIT leads to reduction in
excess inventory waste.
A3 Reports
This is systematic way to solve a problem on a report generated on A3 size paper. This includes
the statement of the problem, cause identification, solution steps, implementation plan and
follow up plan(Chaturvedi, 2013).
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Collaboration
It is defined as the collaboration of all the stakeholders in the planning, design, and construction
process. Various tools like Building Integrated Modelling (BIM), Lean Project delivery system,
communication techniques facilitate it.
Kaizen
Kaizen is defined as the continuous improvement while using the techniques of lean
construction. The organization implementing lean construction has a mechanism to evaluate
performance of the techniques and continues improvements based on lessons. Implementation of
lean construction is a continuous pursuit of perfection.
Visual Aids
Visual Aids help to understand the process and elements for all the part of the construction. They
are also used to guide the workforce to do difficult tasks.
It is used for improvement in an existing process. The steps of this methodology are as follows
17
18
Table2-3: Basic Six Sigma Conversion Table To DPMO(Pheng & Hui, 2004)
Yield=Percentage of items
Sigma Level
without defects
Opportunity)
30.9
690000
69.2
308000
93.3
66800
99.4
6210
99.98
320
99.9997
3.4
Process Flow ChartIt is used to show and analyze all the activities for a product. It is similar to value stream
mapping in the lean construction.
These matrix are calculated by the yield level or DPMO and USL, LSL and mean of the process.
Process capability matrix is used to evaluate existing process while process performance matrix
is used for evaluation of performance measures. It is used in measure phase of Six Sigma
implementation.
It is used in Analyze phase of Six Sigma implementation .This is used to obtain the root cause of
a problem or variation. It is also known as Fishbone Diagram or Ishikawa Diagram because it
was developed by Ishikawa and looks like Fish structure. It uses 7Ms, namely, Man, Materials,
Machine, Method, Measurement, Milieu to find the root cause of an effect as depicted in fig.2-1.
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CTQ(Critical to quality )
Critical to quality characteristics are defined as the deliverables of the process
improvement with relation to customers requirements. It is the Define Step of six
Sigma. Han et al. (2008) used the cycle time of concreting as the CTQ. The DPMO or
process capability matrix has been calculated for this CTQ.
Pareto Chart
Pareto chart are the part of Analyze phase. They are charts on 2-dimension where vertical axis
shows the different factors or causes for variation or a problem in descending order of their
frequency of occurrence. The top most factor causing a problem is given most priority by this
way.
SIPOC
This is used in define phase of the six sigma where supplier, input, process, output and
customer are identified of a process.
Six Sigma has many tools and techniques other than described above. Some of them are 5 why
analysis, control charts, design of experiments (DOE), Taguchi loss function.
20
Fig. 2-2: Lean Project Delivery System and Six Sigma (Abdelhamid, 2003)
21
Al-aomar(2012) proposed that six sigma rating can be used as a performance indicator.
Pheng & Hui(2004) presented use of six sigma in building industry with a case study. DPMO
level was measured for quality of internal finish. Sigma level was found low .The contractor took
improvement measures. It improved sigma level and quality of production.
Tenera & Pinto (2014) presented a framework to implement Lean construction using Six Sigma
steps DMAIC. It helped company to identify the project management problems and their
solutions.
Banawi (2013) presented a framework to integrate lean, green and six sigma .He proposed 3
steps of this framework as follows:
Assessment of impact of waste on environment using Green Tool, Life cycle assessment.
Han et al.(2008) proposed a framework to integrate lean and six sigma so that they can be used
to reduce the weakness of each other as shown in fig.2-4.
Fig.2-3 Concept of Six Sigma integrated approach with lean construction(Han et al., 2008)
22
23
3 RESEARCH METHODOLGY
This chapter represents the data collection and data analysis steps of the research.
3.1 DATA COLLECTION
3.1.1 Data Collection Tool
The data collection tool is an online questionnaire. The questionnaire has been prepared
according to research objectives. The table 3-1 represents research objective and the related
attributes in the questionnaire. The questionnaire has been given in annexure.
Table3-1: The research objectives and question format in the questionnaire
Research Objectives
1. Identification of types of waste and
causes of waste in Indian Construction
2. Acceptability and suitability of Lean
and Six Sigma in Indian Construction
of
24
Table 3-2: Type of waste and causes of waste used in the questionnaire survey of the project
Literature
Type of waste
Cause of Waste
Lack of Coordination,
(2013)
Work
Rework , Defects ,
Weather Conditions,
uncompleted work ,
of equipment ,frequent
constructability in design
storage methods
of inventory , Excessive
Supervision
The table3-3 represents the possible ways of interaction of Six Sigma with Lean Construction
and the literature source.
The barriers on implementation of Lean and Six Sigma are lack of awareness, lack of
commitment, financial constraint, less research in this area, no governmental support have been
identified by Al-aomar, (2012, Chandrasekar & Kumar( 2014) in India.
25
Literature Source
Abdelhamid (2003)
Firat( 2012)
Firat (2012)
Al-aomar (2012)
application
26
Cronbachs alpha will be used to find the internal consistency of the questionnaire based
responses. It measures the consistency of a responses with the other set of responses. It
represents the reliability of the data. It can be calculated by SPSS. The range of cronbach alpha
for the internal consistency as given in table 3-4.
Table3-4: Cronbach alpha and internal consistency (George & Mallery, 2013)
Cronbachs alpha
Internal consistency
0.9
Excellent
0.70.9
Good
0.60.7
Acceptable
0.50.6
Poor
0.5
Unacceptable
This will be done to rank the attributes which needs to be given priority. This will guide the
author to suggest a framework on implementation of Lean and Six Sigma in Indian construction.
It will be done by the following parameters obtained from SPSS, Frequency Index and Relative
Importance Index.
3.2.2 Graphical Result Presentation
Different attributes according to different parameters as received can be plotted by Pareto chart,
pie charts and other formats according to requirements.
27
Participatnts Profile
Des igner/Architect
7%
Planning Engineeer
Designer/Architect
Pl a nning Engineeer
27%
Si te Engineer
20%
28
97
29
To follow up the participants to request them to fill the questionnaire as the response rate
has been low.
To interact with the respondents after they have replied. It is done to understand the
application of Lean and Six Sigma in their organization.
To understand case studies of Lean and Six Sigma in Indian construction and Site visits to
wastes on construction sites.
Analysis of Data
30
REFERENCES
Abdelhamid, T. S. (2003). Six -Sigma in Lean Construction Systems: Opportunities and
Challenges. In IGLC-13. Blacksburg , VA. Retrieved from
http://leanconstruction.dk/media/16779/Six-Sigma in Lean Construction
Systems_Opportunities and Challenges.pdf
Achanga, P., Shehab, E., Roy, R., & Nelder, G. (2006). Critical success factors for lean
implementation within SMEs. Journal of Manufacturing Technology Management, 17(4),
460471. doi:10.1108/17410380610662889
Al-aomar, R. (2012). Analysis of lean construction practices at Abu Dhabi construction industry.
Lean Construction Journal, 105121.
Banawi, A. A. (2013). Improving Construction Processes by integarting Lean , Green and Six
Sigma. University of Pittsburgh.
Chandrasekar, A., & Kumar, M. L. (2014). Effective Utilization of Lean Management in
Construction Industry. International Journal of Engineering and Innovative Technology,
3(12), 2933.
Chang, L., Chao, C., & Lin, Y. (2005). The Application of Six Sigma Approach in Construction:
A Case Study for Improving Precast Production Management. Retrieved from
http://management.kochi-tech.ac.jp/ssms_papers/sms129979_dfbfdcdc4799458bbc835d4a465fa59f.pdf
Chaturvedi, V. R. (2013). The Integration of Lean Principles with BIM in the Construction
Industry in India .
Desale, S. V, & Deodhar, S. V. (2013). An Application of Lean and Six Sigma Principle for
Constructional Process Improvement in Indian Organizations, 3, 149154.
Firat, M. (2012). Six Sigma within Construction Context As a Quality Initiative.
George, D., & Mallery, P. (2013). IBM SPSS Statistics 21 Step by Step: A Simple Guide and
Reference (13th ed.).
Gliem, J. A., & Gliem, R. R. (2003). Calculating, Interpreting , and Reporting Cronbach s
Alpha Reliability Coefficient for Likert-Type Scales. In Midwest Research-to-Practice
Conference (pp. 8288).
Han, S. H., Asce, M., Chae, M. J., Ph, D., Im, K. S., & Ryu, H. D. (2008). Six Sigma-Based
Approach to Improve Performance in Construction Operations, (January), 2131.
Hilton, C. (2010). Lean Construction: A new Paradigm for Managing Construction. San Jaun.
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Howell, G. (1999). What is Lean Construction. In proceedings of the 7th Conference of the
International Group for Lean (pp. 2628). Berkeley, California, USA.
Jens, A., & Henrik, K. (2011). Waste in Lean Construction. Chalmers University of Technology.
Koskela, L. (1992). Application of the new production philosophy to construction.
Liker, J. (2004). The Toyota Way: Fourteen Management Principles from the Worlds Greatest
Manufacturer (1st ed.). New York: McGraw-Hill Professional Publishing.
Pheng, L. S., & Hui, M. S. (2004). Implementing and Applying Six Sigma in Construction.
Journal of Construction Engineering and Management, (August), 482489.
Shanmugapriya, S., & Subramanian, K. (2013). Investigation of Significant Factors Influencing
Time and Cost Overruns in Indian Construction Projects. International Journal of Emerging
Technology and Advanced Engineering, 3(10), 734740.
Tenera, A., & Pinto, L. C. (2014). A Lean Six Sigma (LSS) Project Management Improvement
Model. Procedia - Social and Behavioral Sciences, 119, 912920.
doi:10.1016/j.sbspro.2014.03.102
Womac, J. P., Jones, D. T., & Roos, D. (1990). The Machine that changed the world. New York:
Harper Collins.
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APPENDIX QUESTIONNAIRE
Implementation of Lean Six Sigma in India
1. Ravi Jain , an M. Tech. Student (Construction Engineering and Management ) at Indian
Institute of Technology , Delhi invites and requests you to participate in a research project
titled " Implementation of Lean Six Sigma in Indian Construction " .
2. This research is being conducted under the Guidance of Dr .Kumar Neeraj Jha, Associate
Professor at Indian Institute of Technology, Delhi (http://web.iitd.ac.in/~knjha/)
3.The objective of the study is to understand current state of application of Lean and Six Sigma
Tools in Indian Construction Industry and how Lean and Six Sigma can interact together to
remove wastes in Indian construction . More information about Lean and Six Sigma can be
obtained from here, http://en.wikipedia.org/wiki/Lean_construction and
http://en.wikipedia.org/wiki/Six_Sigma.
4. Your Participation is voluntary. Information provided will be used only for research purpose
only and treated CONFIDENTIALLY .Please help by replying to following Survey. It would
take around 15 minutes. In case of need of any clarifications, please contact at
rv1456@gmail.com or knjha@civil.iitd.ac.in
Thank u very much for filling survey.
1. Your Name (optional )
2. Please indicate the name of the company you currently work for?
33
34
6. In your opinion what are the type of wastes in construction industry? Indicate their frequency
against them. Waste is defined as activities that use resources (Time, cost and efforts) and
information but do not add value to customer.
5-Always, 4-Frequently, 3-Sometimes, 4-Rarely, 1-Never
Options
Always
Frequently
Sometimes
Rarely
Never
35
7. In your opinion what are causes of the above wastes? Please select among the following
using 5 to 1 rating for your answers.
Options
Strongly
Agree
Disagree
Agree
Strongly
Cannot
Disagree
say
36
10. Following is the list of some lean construction techniques, tools and concepts. Please
indicate the level of use these techniques in your company. Consider 5 to 1 rating for options
as in previous question.
Options
Always
Frequently
Sometimes
Rarely
Never
11. Please tell any other tool which your company is using, which leads to minimization of waste
while maximizing the value to customer (lean Construction).
12. Do u feel that variability in the process (e.g. Cycle time of same amount of concreting is
different for different time) or defect (Customer is not satisfied with the product) is a
common problem in construction?
Yes
No
Cant say.
13. Have u heard of Six Sigma?
Yes
No
37
14. Following is the list of tools and techniques which are used in six sigma methodologies?
Please indicate level of use of these methodologies in your company?
Options
Always
Frequently
Sometimes
Rarely
Never
15. Please indicate any other method employed in your company which leads to reduction in
variability of a process or reduction in defects level in your products (Six Sigma).
38
16. In your opinion in what ways Six Sigma can interact with lean construction to help Indian
Construction Industry?
Options
Strongly
Agree
Disagree
Agree
Strongly
Cannot
Disagree
say
Construction Industry?
Options
Strongly
Agree
Agree
Disagree
Strongly
Cannot
Disagree
say
Lack of Awareness
Lack of Commitment
Financial Constraint
Attitude issue
Not enough research in this area
No Governmental Support
Six sigma Rating as a measure of lean
application
18. Please indicate any other challenge you feel.
39