2019Case14DPSATG

56 L EAN C ONSTRUCTION I RELAND A NNUAL B OOK OF C ASES 2019 Report-out – The Kaizen team had identified 12 specific improvements to implement over the remainder of the project which was appreciated by the client and was agreed to be implemented over the following 30 days. Identified Potential Schedule Savings – Schedule savings were calculated based on full elimination of the NVA activity. While it was recognised that this would not be achievable, the Kaizen team wished to proceed with that target. To this point, a 16% reduction in schedule impacts was proposed by the Kaizen team. Table 2. Schedule Reduction Duration Calculation Identified Potential Cost Savings – Cost savings were calculated based on an average cost per hour rate of € 32.50 for each hour saved due to full elimination of the NVA activity. To this point, a potential cost saving of € 88,822 was proposed by the Kaizen team as being achievable via productivity improvements from a reduction in delays. Stage 4: Implementation Plan The improvements identified were broken into three phases (per Table 3), and the 30-day roadmap was publ ished to the onsite construction team with agreement that a 4-week check- in would be completed. Table 3. Three-Phase Improvements LEAN INITIATIVE IMPROVEMENTS & IMPACT The project was closed out at the start of March 2018 with a review of the project results with the team. The project was deemed successful as a total of twelve improvement projects were identified with a targeted increase in labour productivity of 63%, a targeted reduction in schedule of 16%, and a target of € 88,822 in cost savings. Result 1 – Labour Productivity Increase Average labour productivity for the three main activities measured was shown to have increased by 64%. The improvement was driven primarily by a reduction in moving, rework, measuring, and retrieving materials which was all driven by the implementation of the Kaizen improvement activities. Figure 3. Construction Labour Productivity Improvement post-Kaizen Project Implementation Result 2 – Kaizen Measured Cost Reduction Overall cost reduction on the project was calculated at € 41,190 versus a goal of € 88,822 which equated to a 46% achievement of the goal set by the Kaizen event. While still a great achievement the loss of € 46,642 in savings was attributed to the late implementation of improvements. Figure 4. Construction Cost Improvement post-Kaizen Project Result 3 – Kaizen Measured Schedule Reduction Overall schedule reduction on the project was calculated at 905 hours versus a goal of 2733 hours, which equated to a 33% achievement of the goal set by the Kaizen event. While still a great achievement, the loss of 1827 hours in savings was again attributed to the late