Application of lean enterprise concept to construction firms in Japan

Abstract

Construction firms in Japan are struggling with the change in construction industry environment and need a new business model to meet the change. On the other hand, Japanese manufacturing companies, especially automobile companies, are at their peak standing on their strong production system, which is called the lean production system. The lean production system has its origin in the Japanese automobile industry and has changed the dynamics of international competition of the manufacturing industry. The construction industry is a non-manufacturing business; however, lean concepts could assist in the development of a new business model in the construction context. This thesis derived lean concepts from the manufacturing industry and examined their applicability for construction firms in Japan, by exploring the business processes of the Japanese construction industry from three perspectives: the production level, the enterprise level, and the extended enterprise level. This thesis revealed that the peculiarities of the construction industry created barriers to reap the full benefit of the lean transformation at the production and the enterprise level. This thesis concluded that the Japanese construction industry should apply lean concepts at the extended enterprise level. A case study of a new airport construction project in Japan supported this conclusion.