LCiGlossaryofTermsandConcepts

Lean Construction Ireland (LCi) Page 4 of 11 Earned Value (EV) – This is an approach involving monitoring the project plan, actual work, and work completed value, to see if a project is on track. Earned Value shows how much of the budget and time should have been spent, considering the amount of work done so far. Eight Wastes – A framework of eight types of activity that do not add value – thus they are “Waste”. They can be summarised as “DOWNTIME” ( D efects, O ver-Production, W aiting, N on-utilised resources/talent, T ransportation, I nventory, M otion, E xcess-Processing); or as “TIMWOODS” ( T ransportation , I nventory , M otion , W aiting, O ver- Production, O ver-Processing, D efects, S kills). Enterprise Resource Planning (ERP) – This is the integrated management of core business processes, often in real- time, mediated by software and technology, and providing an integrated and continuously updated view of core business processes using common databases. Expected Cost – An expression of the team's best estimate at the conclusion of the Validation Phase of what current best practice would produce as a price for the facility reflected in the accompanying basis of design documents. Typically, the Expected Cost will also be supported by benchmarking or other market data to calibrate the Expected Cost in light of the market context. Fishbone Diagram – This was developed by Ishikawa – and is often referred to as an “Ishikawa Diagram” – and is a cause-and-effect diagram used in root cause analysis to better understand the factors contributing to a problem. Five Big Ideas – A set of organising concepts that support Lean Project Delivery. They were developed to explain and organise the Sutter Health Lean Construction Initiative: Optimise the project not the piece, Collaborate, Really Collaborate (originally implied "specialty contractors involved at schematic design"), Projects as Networks of Commitment, Increase Relatedness, and Tightly Couple Action and Learning. Five Core Principles – These are the core principles underpinning Lean that were developed by Womack and Jones (1996), and include: i. Value – It is defined by your customers who buy results not products (clean clothes vs. washing machines). We should give the customer what they want rather than what is convenient for us to give them. ii. Value Stream – The sequence of all processes from raw material to customer. iii. Flow – Keep value moving; avoid batches and queues; there should be few non-value-adding steps. iv. Pull – Short-term response to customer’s rate of demand and no over-production. v. Perfection – Delivering exactly what a customer wants, when they want it, at a fair price, and defect-free, with minimum waste. 5S – (1) Sort; (2) Set in order; (3) Shine; (4) Standardise; (5) Sustain. This five-step process for workplace efficiency uses visual controls to eliminate waste, and helps us organise what we need and to eliminate what we don't need, thus allowing us to identify problems quickly. 5 Whys – An iterative questioning technique, using cause-and-effect analysis, to get to the root cause of a problem by asking “why” successively whenever a problem exists in order to get beyond the apparent symptoms. As each answer to the “why” question is documented, an additional enquiry is made concerning that response. Flow – Movement that is smooth and uninterrupted, as in the flow of work from one crew to the next or the flow of value at the pull of the customer. Future State Map – A vision of the desired future Lean system that is used as the guide for the change process. Gemba – This is the Japanese term for the place where the actual work is done and where actual value is added. Lean experts encourage “going to the gemba” to see how things are really done and where there is opportunity to eliminate