Lean Homebuilding: Lessons Learned from a Precast Concrete Panelizer

This paper serves as a resource to prefabricated construction managers who are attempting to implement lean thinking to improve their production operations by eliminating waste. Lean is both a general way of thinking and a specific production management approach that emphasizes using less of everything to satisfy the customer by delivering the highest quality at the lowest cost in the shortest time. While providing an overview of lean principles, this paper focuses on two fundamental lean concepts, standardization and continuous flow. To develop these concepts, this paper uses a case-study approach to describe the experiences of a large homebuilder confronted by rising production costs as they migrate wall-building operations from the construction site into a factory. Lean production principles are successfully applied, yielding a 47% increase in productivity and a 25% reduction in lead time. This study also found employee involvement and the supplier relationship as key factors for successful lean implementation. Challenges that limited implementation success and the related lessons learned are also presented.