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Joshua Plenert and Gerhard Plenert0
Applying Lean Six Sigma (LSS) to the architecture/engineering/construction (AEC) industry can create unique
challenges. LSS is not heavily used in the service industry and almost never used in AEC businesses. When
LSS is presented to an AEC firm one of the first comments from the company’s team members is, “If it ain’t
broke, don’t fix it.” This comment comes from a lack of understanding of what is possible. It comes from an
attitude of “We’ve always done it this way.” What they do not realize is that their system is broken.
It has been estimated that the service industry is operating with a level of waste at close to 80 percent. Many
AEC firms do not even attempt to reduce that waste and have no problem passing the cost of that waste on to
their clients.
Introducing LSS to an engineering office, architectural office, or a team of construction workers can be
daunting. In general, members of the AEC industry perceive LSS as not applicable and not useful to their day-
to-day operations. This comes from an attitude of resisting change and results from rejecting LSS before they
understand how it works. They do not believe the LSS success stories and think they are overstated. This
resistance, however, is certainly not insurmountable. It does, however, require a deliberate approach.
The staff engineer then spends three additional hours revising the calculations and returns them back to the
senior engineer. After two more days, the senior engineer spends another hour reviewing and provides
additional feedback. The staff engineer then spends two more hours making revisions and sends the
calculations back to the senior engineer. The senior engineer then sends the calculations to the engineer
responsible for stamping. After four days and three hours of review time, the engineer in charge provides
feedback to the staff engineer including several changes to the design approach of the project. The staff
engineer spends six hours revising the calculations and sends them back to the engineer in charge and cc’s
the senior engineer. After four more days, the staff engineer follows up with the engineer in charge to
determine if the calculations are approved and stamped. Two days later, the engineer in charge sends the
stamped calculations to the staff engineer.
Does this process seem rational? Or is it overburdened with repetitiveness and redundancies? In this example,
the inefficiencies of the firm’s operations resulted in nearly 45 percent wasted time. This wasted time resulted
in an extra cost of more than $1,500. This cost is covered by the firm, the client or both. It took the firm 17 days
to produce a final product that could have been produced in four days if the waste and delays were eliminated.
Unfortunately, this type of scenario is not uncommon.
Applying a LSS perspective to this example, the total amount of time spent on the project was 17 days times 8
hours per day, which equals 136 hours. The amount of time spent working on the project was 37 hours. The
total waste time was 99 hours (73 percent). The goal should be 37 hours. (In the Lean world even that would
be too much since there are probably inefficiencies in the way the work itself was performed.)
In the end, they had 16 control points for every purchase order, all of which created waste and time delay, and
none of which added value, since none of the signees actually checked the document. The failed system drove
this behavior because it caused a false sense of security for all the signees. It would have been better to have
one control point where the document was looked at carefully. Then there would be more accuracy and
significantly less waste.
This type of redundancy and waste is also seen in the engineering example. Using the same logic, there was
90+ percent waste in the way project submittals were created. And this waste equates directly to dollars.
Conclusion
Few organizations in the AEC industry use LSS. They continue to do things the way they have always been
done. They operate with huge amounts of waste and are making little effort to reduce that waste. This
information should be exciting to the leaders of organizations in the AEC industry. Because if LSS can be used
to reduce the waste in an organization, huge competitive advantages can be gained. A business will be able to
provide unmatched service, production speed and quality at unbeatable prices.
When working to apply LSS, make it strategic, cultural and scientific. That is the formula for producing
sustainable results that will render the competition irrelevant.