1. Productivity in the construction industry has decreased by over 20% in the past 40 years, while manufacturing productivity has more than doubled.
2. Lean construction aims to reduce variability and minimize costs through better owner-contractor interaction, strong performance management systems, and a focus on developing staff capabilities.
3. Adopting lean construction principles can lead to significant improvements in schedule compliance, cost savings of 10-25%, and NPV improvements of 5-10%.
The article discusses the concept of lean construction, which aims to reduce variability and minimize costs in large capital projects. The authors argue that traditional construction processes are inefficient and lead to cost overruns and delays. They suggest that lean construction can address these issues by improving owner-contractor interaction, implementing a strong performance management system, and focusing on developing staff capabilities.
While the article provides some useful insights into the benefits of lean construction, it is important to note that it may be biased towards McKinsey's consulting services. The authors do not provide any evidence or data to support their claims about the inefficiency of traditional construction processes or the effectiveness of lean construction. Additionally, they do not explore potential counterarguments or risks associated with implementing this approach.
Furthermore, the article focuses primarily on the benefits for project owners and contractors, without considering the impact on other stakeholders such as workers and local communities. It also does not address broader issues such as sustainability and environmental impact.
Overall, while the concept of lean construction may have merit, readers should approach this article with a critical eye and seek out additional information before making any decisions about implementing this approach in their own projects.