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All projects are measured against some performance criteria
that indicate whether the project is successful or not.
The following are the most important performance criteria,
For cost effective project management we should focus on
each and every aspects and the key point we have to focus is
Waste generated as a result of design & specifications
Waste generated by construction activities
WASTAGE BY SPECIFICATION & DESIGN
Design and the specifications can contribute
significantly to the amount of waste generated
during the construction of a project particularly
when uneconomical design solutions are
selected or when unsuitable materials are
However once the design is in place, the waste
arising from the design can be estimated,
controlled and reduced at tender stage,
particularly for ‘area based’ packages such as
flooring, walling and ceilings or when off site
manufacture is used.
WASTAGE BY CONSTRUCTION
The way construction activities are
carried out during the construction
process also impacts on the quantity of
This waste is more difficult to estimate at
tender stage as it is based upon events
that occur during construction that are
not foreseen at tender stage.
Maximum wastage arises under this
TOOLS FOR REDUCTION OF WASTE
Value stream mapping –
identifying the waste.
Last Planner – minimizing the
VALUE STREAM MAPPING
VALUE STREAM MAPPING
Value stream mapping is a lean-management method for
analyzing the current state and designing a future state for
the series of events that take a product or service from its
beginning through to the customer.
At Toyota, it is known as "material and information flow
VSM - PRINCIPLES
– Reveals hidden symptoms of larger problems
Strategic Planning Activity
– Helps priorities opportunities for improvement
– Results in an implementation plan
Macro-Level - Visual Representation
– Information flow
– People and material flow
– Each process block represents a handoff or a break in the timeline
Contains Relevant Metrics
– Lead time – throughput / turnaround / flow time
– Cycle time – touch / process time
HOW IT PROCESS?
SIPOC - Process Map
S I O CP
Suppliers Inputs Process Outputs Customers
VSM - Boundary
Define the boundaries
Define the value
Identify the tasks and flows of material and information between them
Identify resources for each task and flow
Create the current state map
Future State (Design)
Visualize the “Ideal State” and design the future state map
– Identify value added and waste from Current State
– Reconfigure the process to eliminate waste / Add Value
Develop Action plans and track
VALUE ADD & NON VALUE ADD
Value Add (VA)
• Any activity the customer values (and is willing to pay for)
– Who are your customers?
– What do they really want?
• To be considered “value add”, a process step must have YES to all these questions
– Does the customer care?
– Does it change the thing?
– Is it done right the first time?
– Is it required by law or regulation?
Non Value Add (NVA)
• Any activity that consumes time and / or resources & does not add value to the
service or product for the customer. These activities should be eliminated, simplified,
reduced, or integrated.
– Necessary – Legal / regulatory requirements
– Unnecessary - Waiting, Unnecessary processing, Errors/defects, Motion (people),
Transportation (product), Underutilized people, Inventory
LAST PLANNER SYSTEM
Last Planner is a short-term project planning system first used
in engineering construction 20 years ago.
Glenn Ballard and Greg Howell created The Last Planner
System (LPS) to improve the predictability and reliability of
It continues to create significant improvements in project &
program safety, predictability, productivity, speed of delivery,
profit and feelings of wellbeing among project staff.