Lean enterprise in the construction industry

Abstract

This thesis explores the application of the Lean Enterprise Model (LEM) to construction firms. LEM is a framework derived from lean manufacturing principles by MIT's Lean Aerospace Initiative (LAI) for the aerospace industry. Construction firms also need new business models to meet the change in construction industry environment. Lean enterprise could assist in the development of a new business model. In theory, LEM could be applied to any given industry. A matrix has been created in which six key construction characteristics are compared to six key lean enterprise principles in order to asses how compatible would the lean enterprise model be taking into account the particularities of the construction industry. The results show that in some aspects the construction industry is already somewhat lean, e.g. it works on the basis of customer pull, while in others the application of lean principles would require a big mindset and cultural change, e.g. adversarial relationships due to the lump sum bidding system.