DTU ProjectLab - User contributions [en-gb]

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-28T15:46:07Z

S142581:

Kristine:
Minimizing risk is an interesting subject. Do try not to spread over too many subjects at once as it will not allow you to go enough in debt with each of them. Do consider what tool it is especially important for you to explain as this should have your main focus.
The Main page is helpful to look at when you need to structure the article.

Reviewer 1: S102935
# '''Pros '''
## Engaging overview, works as a good introduction
## Good overall structure of the article
## Good references
'''''Thank you!'''''

# '''Missing content and formalities'''
## The annotated bibliography seem like an important part of the article, so remember to include annotations in your final article.
'''''Thank you for the suggestion. I made the section Annotated articles'''''
## Few grammatical errors, which should be corrected before the final hand-in.
'''''I went through all grammatical issues in the text. It should be fine now'''''
# '''Suggestions'''
## Remember to focus on a creating a red thread through your article.
'''''I tried to be more consistent on Lean Construction connected with the methods'''''
## Reread your article to thin out grammatical errors.
## Try to integrate other relevant articles into your subject, such as budget overruns or delays due to uncertainties etc.
'''''I think it is a good idea, so I included a paragraph about cost overrun due to uncertainties'''''
# '''Additional comments'''
## You mention BIM in the overview of your article, but it is not used later on.
'''''After the TA feedback of my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
## One of your references also focus on BIM, namely “Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems”, but is used for a part concerning weekly meetings and commitment and trust among the parties. You should look into whether it is intentionally or not.
'''''It is intentional. Despite the title of the source´s report, it also includes information about Lean Construction and Last Planner System, with a very wise mention to commitment among the parties.'''''

'''''Thank you for your feedback!'''''

'''Reviewer 2: AndreasAndersen'''
* The first impression of the article is good
* How the article is structured could be written in the beginning of the article. This will make the article more reader-friendly.
'''''I think you are right about this, so I made a small introduction of the article right after the title.'''''
* In some places are the language and grammar difficult to understand and this needs to be improved because it removes the focus
'''''I change some sentences and simplified the grammar'''''
* You should start every section with a short description of why the section is important. For example needs the ”Risk and Uncertainty” section a description of why it is important to manage. It would be more easy to understand the different sections if you can write 1-2 lines of why it is important to manage
'''''I believe that I already introduce the section the way you mention'''''
* You are also using a lot of bullets which gives a good overview but in some places you could use more bullets. For example in the "transformation, flow and value" section are you describing three concepts without bullets. This can make it difficult to compare the three concepts and make an overview '''''Yes, when I was doing the bullets, I passed this part. Now it is fixed'''''
* The figures gives a good understand of the theory but the figures are small and are of poor quality. You should try to make the quality better and make the figures larger
'''''I changed the figures and put some diagrams that I think have more image quality. But it is true that the image has more quality only if you click on it'''''
* You need to link your Wiki article to other relevant pages in the APPPM Wiki
'''''I have added a section called Annotated articles. Thank you for the suggestion'''''
* Your article is to short and has only about 1700 words
'''''I was not finished, so now it should have around 2300 words'''''
* It is good that you have different types of references
'''''I am not sure about what you mean, but I did some research among articles and books, the ones that I mention in the Bibliography'''''

'''''Thank you for your feedback!'''''

==s150799 reviewer nr.3==
===Overall impression:===
* There is a lot of interesting information and theories.
===Improvement areas:===
* For me, the structure was a bit confusing and made it hard to understand when and where different subject was discussed. For example are the sections about “transformation, flow and value” under Lean construction, or are this an independent theory?
'''''The TFV section is part of Methods section, which is part of Lean Construction. But I wrote an additional sentence at the end of Lean Construction section, to introduce the specific methods'''''
*Always explain abbreviations before using it.
'''''I explain them in the Lean Construction section, and the complete names are also in the title'''''
*The grammar makes the article a bit challenging to read.
'''''I change some sentences and simplified the grammar'''''
*In the overview you state that you are going to discuss BIM in Lean, but I cannot see that this has been done.
'''''After the TA feedback of my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
*Remember to make links to other Wiki articles and an annotated bibliography section.
'''''I have added a section called Annotated articles. Thank you for the suggestion'''''
===Suggestion of improvement:===
* Instead of an own overview section, you could have an abstract before the contents.
'''''I did not place the abstract before the contents, but have introduced the article with two lines. Thank you for that'''''
* For the structure you could be more clear when and where you are talking about different theories. There was no clear difference between facts and the use of the tools.
'''''Instead of the structure you mention about the tools, I tried to make the structure about risk management (facts) and the methods to assess it (application). But I modified part of the text to clarify your point'''''
*It would make the flow of the article much better if you looked at conjugation of words and the sentence structure. There are some sentences that don’t make sense because of the wrong use of words. For example “outlooks”, when I think you wanted to write “outcome”. And try to refer to someone or something when you start the sentence with “it, that or this”, then it is easier to understand what you mean.
'''''I am not sure about what you mean exactly. It would be great if you would be more specific, in order to modify the text. When I start the sentence with 'this' or 'that', I refer to the previous information'''''

'''''Thank you for your feedback!'''''

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-28T15:39:16Z

S142581:

Kristine:
Minimizing risk is an interesting subject. Do try not to spread over too many subjects at once as it will not allow you to go enough in debt with each of them. Do consider what tool it is especially important for you to explain as this should have your main focus.
The Main page is helpful to look at when you need to structure the article.

Reviewer 1: S102935
# '''Pros '''
## Engaging overview, works as a good introduction
## Good overall structure of the article
## Good references
'''''Thank you!'''''

# '''Missing content and formalities'''
## The annotated bibliography seem like an important part of the article, so remember to include annotations in your final article.
'''''Thank you for the suggestion. I made the section Annotated articles'''''
## Few grammatical errors, which should be corrected before the final hand-in.
'''''I went through all grammatical issues in the text. It should be fine now'''''
# '''Suggestions'''
## Remember to focus on a creating a red thread through your article.
'''''I tried to be more consistent on Lean Construction connected with the methods'''''
## Reread your article to thin out grammatical errors.
## Try to integrate other relevant articles into your subject, such as budget overruns or delays due to uncertainties etc.
'''''I think it is a good idea, so I included a paragraph about cost overrun due to uncertainties'''''
# '''Additional comments'''
## You mention BIM in the overview of your article, but it is not used later on.
'''''After the TA feedback of my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
## One of your references also focus on BIM, namely “Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems”, but is used for a part concerning weekly meetings and commitment and trust among the parties. You should look into whether it is intentionally or not.
'''''It is intentional. Despite the title of the source´s report, it also includes information about Lean Construction and Last Planner System, with a very wise mention to commitment among the parties.'''''
'''''Thank you for your feedback'''''

'''Reviewer 2: AndreasAndersen'''
* The first impression of the article is good
* How the article is structured could be written in the beginning of the article. This will make the article more reader-friendly.
'''''I think you are right about this, so I made a small introduction of the article right after the title.'''''
* In some places are the language and grammar difficult to understand and this needs to be improved because it removes the focus
'''''I change some sentences and simplified what I was trying to explain'''''
* You should start every section with a short description of why the section is important. For example needs the ”Risk and Uncertainty” section a description of why it is important to manage. It would be more easy to understand the different sections if you can write 1-2 lines of why it is important to manage
'''''I believe that I already introduce the section the way you mention'''''
* You are also using a lot of bullets which gives a good overview but in some places you could use more bullets. For example in the "transformation, flow and value" section are you describing three concepts without bullets. This can make it difficult to compare the three concepts and make an overview '''''Yes, when I was doing the bullets, I passed this part. Now it is fixed'''''
* The figures gives a good understand of the theory but the figures are small and are of poor quality. You should try to make the quality better and make the figures larger
'''''I changed the figures and put some diagrams that I think have more image quality. But it is true that the image has more quality only if you click on it'''''
* You need to link your Wiki article to other relevant pages in the APPPM Wiki
'''''I have added a section called Annotated articles. Thank you for the suggestion'''''
* Your article is to short and has only about 1700 words
'''''I was not finished, so now it should have around 2300 words'''''
* It is good that you have different types of references
'''''I am not sure about what you mean, but I did some research among articles and books, the ones that I mention in the Bibliography'''''
'''''Thank you for your feedback'''''

==s150799 reviewer nr.3==
===Overall impression:===
* There is a lot of interesting information and theories.
===Improvement areas:===
* For me, the structure was a bit confusing and made it hard to understand when and where different subject was discussed. For example are the sections about “transformation, flow and value” under Lean construction, or are this an independent theory? '''''The TFV section is part of Methods section, which is part of Lean Construction. But I wrote an additional sentence at the end of Lean Construction section, to introduce the specific methods'''''
*Always explain abbreviations before using it.
*The grammar makes the article a bit challenging to read.
*In the overview you state that you are going to discuss BIM in Lean, but I cannot see that this has been done. '''''After the TA feedback of my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
*Remember to make links to other Wiki articles and an annotated bibliography section. '''''I have added a section called Annotated articles. Thank you for the suggestion'''''
===Suggestion of improvement:===
* Instead of an own overview section, you could have an abstract before the contents. '''''I did not place the abstract before the contents, but have introduced the article with two lines. Thank you for that'''''
* For the structure you could be more clear when and where you are talking about different theories. There was no clear difference between facts and the use of the tools. '''''Instead of the structure you mention about the tools, I tried to make the structure about risk management (facts) and the methods to assess it (application). But I modified part of the text to clarify your point'''''
*It would make the flow of the article much better if you looked at conjugation of words and the sentence structure. There are some sentences that don’t make sense because of the wrong use of words. For example “outlooks”, when I think you wanted to write “outcome”. And try to refer to someone or something when you start the sentence with “it, that or this”, then it is easier to understand what you mean.
'''''Thank you for your feedback'''''

Minimizing Risk and Uncertainties in Construction Projects

2015-09-28T11:37:33Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount of parts involved. This approach analyzes how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these needs during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyze, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

Furthermore, it is necessary to control the risk source through the project life cycle, since the probability of risk events can be assessed when we receive and monitor the information. When the risk probability has passed the point of becoming a risk event, it can be removed from the risk register. This process requires the full implication and commitment of the project management team, because it is during this phase that awareness of possible unknown-unknowns events can grow.

In addition, uncertainties are the reason of possible cost overruns and delays. Many factors can be responsible of creating this uncertainties, such as the fluctuations in cost of materials, lack of resources, changes in design and specifications or financial problems. Therefore, a study of the possible cost overrun factors is required. But the most effective solution to this is to have a proper project planning, and Lean Construction is the ideal tool<ref> ''Cost overrun factors and Project cost risk assessment in Construction industry - Savita Sharma and Pradeep K. Goyal, 2014'' </ref>.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists of the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfills the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste; this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted or waste in overproduction, among others.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>

But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution. In this approach three important tools to assess planning and risk management are analyzed:

* Transformation, Flow and Value.
* Last Planner System.
* Location-Based Scheduling.

==Methods to minimize risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives. In these meetings, agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value for the owner by eliminating waste caused by unpredictable workflow. Moreover, it enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation in which the schedule makes the weekly work plans efficient, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and shares the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence. Since the structures of such sections are independent of each other, it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the Last Planner System, there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the Location-Based Schedule, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing the system. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-28T11:34:29Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount of parts involved. This approach analyzes how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these needs during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyze, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

Furthermore, it is necessary to control the risk source through the project life cycle, since the probability of risk events can be assessed when we receive and monitor the information. When the risk probability has passed the point of becoming a risk event, it can be removed from the risk register. This process requires the full implication and commitment of the project management team, because it is during this phase that awareness of possible unknown-unknowns events can grow.

In addition, uncertainties are the reason of possible cost overruns and delays. Many factors can be responsible of creating this uncertainties, such as the fluctuations in cost of materials, lack of resources, changes in design and specifications or financial problems. Therefore, a study of the possible cost overrun factors is required. But the most effective solution to this is to have a proper project planning, and Lean Construction is the ideal tool<ref> ''Cost overrun factors and Project cost risk assessment in Construction industry - Savita Sharma and Pradeep K. Goyal, 2014'' </ref>.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists of the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfills the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste; this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted or waste in overproduction, among others.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>

But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution. In this approach three important tools to assess planning and risk management are analyzed:

* Transformation, Flow and Value.
* Last Planner System.
* Location-Based Scheduling.

==Methods to minimize risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives. In these meetings, agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value for the owner by eliminating waste caused by unpredictable workflow. Moreover, it enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation in which the schedule makes the weekly work plans efficient, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and shares the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence. Since the structures of such sections are independent of each other, it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the Last Planner System, there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-28T09:36:54Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount of parts involved. This approach analyzes how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these needs during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyze, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

Furthermore, it is necessary to control the risk source through the project life cycle, since the probability of risk events can be assessed when we receive and monitor the information. When the risk probability has passed the point of becoming a risk event, it can be removed from the risk register. This process requires the full implication and commitment of the project management team, because it is during this phase that awareness of possible unknown-unknowns events can grow.

In addition, uncertainties are the reason of possible cost overruns and delays. Many factors can be responsible of creating this uncertainties, such as the fluctuations in cost of materials, lack of resources, changes in design and specifications or financial problems. Therefore, a study of the possible cost overrun factors is required. But the most effective solution to this is to have a proper project planning, and Lean Construction is the ideal tool<ref> ''Cost overrun factors and Project cost risk assessment in Construction industry - Savita Sharma and Pradeep K. Goyal, 2014'' </ref>.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists of the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfills the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste; this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted or waste in overproduction, among others.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>

But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution. In this approach three important tools to assess planning and risk management are analyzed:

* Transformation, Flow and Value.
* Last Planner System.
* Location-Based Scheduling.

==Methods to minimize risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives. In these meetings, agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value for the owner by eliminating waste caused by unpredictable workflow. Moreover, it enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation in which the schedule makes the weekly work plans efficient, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:56:37Z

S142581:

Kristine:
Minimizing risk is an interesting subject. Do try not to spread over too many subjects at once as it will not allow you to go enough in debt with each of them. Do consider what tool it is especially important for you to explain as this should have your main focus.
The Main page is helpful to look at when you need to structure the article.

Reviewer 1: S102935
# '''Pros '''
## Engaging overview, works as a good introduction
## Good overall structure of the article
## Good references

# '''Missing content and formalities'''
## The annotated bibliography seem like an important part of the article, so remember to include annotations in your final article. '''''Thank you for the suggestion. I made the section Annotated articles'''''
## Few grammatical errors, which should be corrected before the final hand-in. '''''I tried to go through all grammatical issues in the text. It should be fine now'''''
# '''Suggestions'''
## Remember to focus on a creating a red thread through your article.
## Reread your article to thin out grammatical errors.
## Try to integrate other relevant articles into your subject, such as budget overruns or delays due to uncertainties etc. '''''I think it is a good idea, so I included a paragraph about cost overrun due to uncertainties'''''
# '''Additional comments'''
## You mention BIM in the overview of your article, but it is not used later on. '''''After the TA feedback of my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
## One of your references also focus on BIM, namely “Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems”, but is used for a part concerning weekly meetings and commitment and trust among the parties. You should look into whether it is intentionally or not. '''''It is intentional. Despite the title of the source´s report, it also includes information about Lean Construction and Last Planner System, with a very wise mention to commitment among the parties.'''''

'''Reviewer 2: AndreasAndersen'''
* The first impression of the article is good
* How the article is structured could be written in the beginning of the article. This will make the article more reader-friendly. '''''I think you are right about this, so I made a small introduction of the article right after the title.'''''
* In some places are the language and grammar difficult to understand and this needs to be improved because it removes the focus
* You should start every section with a short description of why the section is important. For example needs the ”Risk and Uncertainty” section a description of why it is important to manage. It would be more easy to understand the different sections if you can write 1-2 lines of why it is important to manage '''''I believe that I already introduce the section the way you mention'''''
* You are also using a lot of bullets which gives a good overview but in some places you could use more bullets. For example in the "transformation, flow and value" section are you describing three concepts without bullets. This can make it difficult to compare the three concepts and make an overview '''''Yes, when I was doing the bullets, I passed this part. Now it is fixed'''''
* The figures gives a good understand of the theory but the figures are small and are of poor quality. You should try to make the quality better and make the figures larger '''''I changed the figures and put some diagrams that I think have more image quality'''''
* You need to link your Wiki article to other relevant pages in the APPPM Wiki '''''I have added a section called Annotated articles. Thank you for the suggestion'''''
* Your article is to short and has only about 1700 words '''''I was not finished, so now it should have around 2300 words'''''
* It is good that you have different types of references '''''I am not sure about what you mean, but I did some research among articles and books'''''

==s150799 reviewer nr.3==
===Overall impression:===
* There is a lot of interesting information and theories.
===Improvement areas:===
* For me, the structure was a bit confusing and made it hard to understand when and where different subject was discussed. For example are the sections about “transformation, flow and value” under Lean construction, or are this an independent theory? '''''The TFV section is part of Methods section, which is part of Lean Construction. But I wrote an additional sentence at the end of Lean Construction section, to introduce the specific methods'''''
*Always explain abbreviations before using it.
*The grammar makes the article a bit challenging to read.
*In the overview you state that you are going to discuss BIM in Lean, but I cannot see that this has been done. '''''After the TA feedback of my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
*Remember to make links to other Wiki articles and an annotated bibliography section. '''''I have added a section called Annotated articles. Thank you for the suggestion'''''
===Suggestion of improvement:===
* Instead of an own overview section, you could have an abstract before the contents. '''''I did not place the abstract before the contents, but have introduced the article with two lines. Thank you for that'''''
* For the structure you could be more clear when and where you are talking about different theories. There was no clear difference between facts and the use of the tools. '''''Instead of the structure you mention about the tools, I tried to make the structure about risk management (facts) and the methods to assess it (application). But I modified part of the text to clarify your point'''''
*It would make the flow of the article much better if you looked at conjugation of words and the sentence structure. There are some sentences that don’t make sense because of the wrong use of words. For example “outlooks”, when I think you wanted to write “outcome”. And try to refer to someone or something when you start the sentence with “it, that or this”, then it is easier to understand what you mean.

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:50:37Z

S142581: /* Lean Construction */

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

Furthermore, it is necessary to control the risk source through the project life cycle, since the probability of risk events can be assessed when we receive and monitor the information. When the risk probability has passed the point of becoming a risk event, it can be removed from the risk register. This process requires the full implication and commitment of the project management team, because it is during this phase that awareness of possible unknown-unknowns events can grow.

In addition, uncertainties are the reason of possible cost overruns and delays. Many factors can be responsible of creating this uncertainties, such as the fluctuations in cost of materials, lack of resources, changes in design and specifications or financial problems. Therefore, a study of the possible cost overrun factors is required. But the most effective solution to this is to have a proper project planning, and Lean Construction is the ideal tool<ref> ''Cost overrun factors and Project cost risk assessment in Construction industry - Savita Sharma and Pradeep K. Goyal, 2014'' </ref>.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution. In this approach three important tools to assess planning and risk management are analyzed:

* Transformation, Flow and Value.
* Last Planner System.
* Location-Based Scheduling.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:40:25Z

S142581:

Kristine:
Minimizing risk is an interesting subject. Do try not to spread over too many subjects at once as it will not allow you to go enough in debt with each of them. Do consider what tool it is especially important for you to explain as this should have your main focus.
The Main page is helpful to look at when you need to structure the article.

Reviewer 1: S102935
# '''Pros '''
## Engaging overview, works as a good introduction
## Good overall structure of the article
## Good references

# '''Missing content and formalities'''
## The annotated bibliography seem like an important part of the article, so remember to include annotations in your final article. '''''Thank you for the suggestion. I made the section Annotated articles'''''
## Few grammatical errors, which should be corrected before the final hand-in. '''''I tried to go through all grammatical issues in the text. It should be fine now'''''
# '''Suggestions'''
## Remember to focus on a creating a red thread through your article.
## Reread your article to thin out grammatical errors.
## Try to integrate other relevant articles into your subject, such as budget overruns or delays due to uncertainties etc. '''''I think it is a good idea, so I included a paragraph about cost overrun due to uncertainties'''''
# '''Additional comments'''
## You mention BIM in the overview of your article, but it is not used later on. '''''After the TA feedback for my abstract, I decided not to write about BIM in the article, so I changed the abstract in Word, but forgot to replace it in the wiki page. Now it is fixed.'''''
## One of your references also focus on BIM, namely “Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems”, but is used for a part concerning weekly meetings and commitment and trust among the parties. You should look into whether it is intentionally or not. '''''It is intentional. Despite the title of the source´s report, it also includes information about Lean Construction and Last Planner System, with a very wise mention to commitment among the parties.'''''

'''Reviewer 2: AndreasAndersen'''
* The first impression of the article is good
* How the article is structured could be written in the beginning of the article. This will make the article more reader-friendly. ''I think you are right about this, so I made a small introduction of the article right after the title.''
* In some places are the language and grammar difficult to understand and this needs to be improved because it removes the focus
* You should start every section with a short description of why the section is important. For example needs the ”Risk and Uncertainty” section a description of why it is important to manage. It would be more easy to understand the different sections if you can write 1-2 lines of why it is important to manage
* You are also using a lot of bullets which gives a good overview but in some places you could use more bullets. For example in the "transformation, flow and value" section are you describing three concepts without bullets. This can make it difficult to compare the three concepts and make an overview
* The figures gives a good understand of the theory but the figures are small and are of poor quality. You should try to make the quality better and make the figures larger
* You need to link your Wiki article to other relevant pages in the APPPM Wiki
* Your article is to short and has only about 1700 words
* It is good that you have different types of references

==s150799 reviewer nr.3==
===Overall impression:===
* There is a lot of interesting information and theories.
===Improvement areas:===
* For me, the structure was a bit confusing and made it hard to understand when and where different subject was discussed. For example are the sections about “transformation, flow and value” under Lean construction, or are this an independent theory?
*Always explain abbreviations before using it.
*The grammar makes the article a bit challenging to read.
*In the overview you state that you are going to discuss BIM in Lean, but I cannot see that this has been done.
*Remember to make links to other Wiki articles and an annotated bibliography section.
===Suggestion of improvement:===
* Instead of an own overview section, you could have an abstract before the contents.
* For the structure you could be more clear when and where you are talking about different theories. There was no clear difference between facts and the use of the tools.
*It would make the flow of the article much better if you looked at conjugation of words and the sentence structure. There are some sentences that don’t make sense because of the wrong use of words. For example “outlooks”, when I think you wanted to write “outcome”. And try to refer to someone or something when you start the sentence with “it, that or this”, then it is easier to understand what you mean.

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:38:39Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

Furthermore, it is necessary to control the risk source through the project life cycle, since the probability of risk events can be assessed when we receive and monitor the information. When the risk probability has passed the point of becoming a risk event, it can be removed from the risk register. This process requires the full implication and commitment of the project management team, because it is during this phase that awareness of possible unknown-unknowns events can grow.

In addition, uncertainties are the reason of possible cost overruns and delays. Many factors can be responsible of creating this uncertainties, such as the fluctuations in cost of materials, lack of resources, changes in design and specifications or financial problems. Therefore, a study of the possible cost overrun factors is required. But the most effective solution to this is to have a proper project planning, and Lean Construction is the ideal tool<ref> ''Cost overrun factors and Project cost risk assessment in Construction industry - Savita Sharma and Pradeep K. Goyal, 2014'' </ref>.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:35:45Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

Furthermore, it is necessary to control the risk source through the project life cycle, since the probability of risk events can be assessed when we receive and monitor the information. When the risk probability has passed the point of becoming a risk event, it can be removed from the risk register. This process requires the full implication and commitment of the project management team, because it is during this phase that awareness of possible unknown-unknowns events can grow.

In addition, uncertainties are the reason of possible cost overruns and delays. Many factors can be responsible of creating this uncertainties, such as the fluctuations in cost of materials, lack of resources, changes in design and specifications or financial problems. Therefore, a study of the possible cost overrun factors is required. But the most effective solution to this is to have a proper project planning, and Lean Construction is the ideal tool.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:27:45Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:19:51Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|400px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:19:00Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last Planner System===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-Based Scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

==Annotated articles==

This article is related to other relevant pages in the APPPM wiki:

*[http://apppm.man.dtu.dk/index.php/Lean_Project_Management ''Lean Project Management'']
*[http://apppm.man.dtu.dk/index.php/Lean_construction ''Lean Construction'']
*[http://apppm.man.dtu.dk/index.php/Risk_analysis ''Risk Analysis'']
*[http://apppm.man.dtu.dk/index.php/Risk_management ''Risk Management'']
*[http://apppm.man.dtu.dk/index.php/Risk_register ''Risk Register'']

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:08:44Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]][[Category:Lean]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:08:08Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

[[Category:Project Management]][[Category:Lean Construction]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:07:23Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

[[Category:Project Management]][[Category:Predictability]][[Category:Uncertainty]][[Category:Lean Management]][[Category:Risk Management]]

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T16:04:01Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, Flow and Value===

Lean Construction consists of several tools, which enable all parties to perform their tasks without compromising the resources. The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:39:43Z

S142581:

Talk:Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:37:58Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:24:18Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|400px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:22:49Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|500px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|left|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

In the Figure 3, the information flow and LPS process are shown. Regarding the concept of the 7 flows, which is part of this figure, it is used to represent the conditions that must be analyzed and met in order to perform an activity in a construction project:

* '''Prerequisite work''': must be done
* '''Materials''': must be ready
* '''Equipment''': must be ready
* '''Personnel''': must be qualified
* '''Right information''': must be at hand
* '''Space''': must be appropriate and safe
* '''External circumstances''': should be clarified

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* '''Building objects''': components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* '''Planned building component quantities''': quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* '''Building system assemblies''': this includes the construction method, support components and building site planning.
* '''Material costs''': cost related to the planned material quantities.
* '''Building system costs''': costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:06:35Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|500px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|left|Figure 3: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:05:30Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|500px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 2: Knowns and unknowns diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

File:Knowns diagram.jpg

2015-09-25T07:03:59Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T07:03:43Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===
[[File:risks diagram.jpg|500px|thumb|right|Figure 1: Risks event diagram]]
From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:knowns diagram.jpg|500px|thumb|right|Figure 1: Risks event diagram]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T06:30:45Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:
[[File:risks diagram.jpg|500px|thumb|right|Figure 1: Risks event diagram]]

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

File:Risks diagram.jpg

2015-09-25T06:29:54Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T06:29:12Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:
[[File:.jpg|500px|thumb|right|Figure 1: Risks event diagram]]

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-25T06:28:29Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:
[[File:|500px|thumb|right|Figure 1: Risks event diagram]]

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-23T16:44:30Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

* '''Transformation''': when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
* '''Flow''': the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
* '''Value''': there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-23T16:42:53Z

S142581:

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Lean Construction principles.

==Overview==

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of certain risk management methods have in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, three important methods are evaluated: the TFV-model (transformation, flow and value), the Last Planner System and the Location-Based Scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

In this approach, the correlation and development of these methods in the construction industry are also analysed.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Talk:Stakeholder Analysis and Matrices

2015-09-22T19:44:37Z

S142581:

Mette: Hello, I like your idea. It seems like you have a clear agenda of what you want to write about. Maybe you could have a discussion between the use of stakeholder analysis and stakeholder matrix.

Reviewer 2: s142581

* The article was interesting and easy to read. It is very much related for the course and relevant for practitioners.
* In general, it follows a logical flow and has a good structure.
* You have used a good vocabulary and short and concise sentences.
* I like what you have written so far in the ''Background'' section. In my opinion, if you take care of this section, you can improve the overall quality of the article.
* I would suggest you clarify the ''Discussion'' section, or reconsider if it should be placed after both ''Stakeholder analysis'' and ''Stakeholder matrix''.
* At the moment, I find the article short, although I can see you will add more text.
* I think you should talk with the teacher whether or not you should personalize the process ''(your stakeholders, make a list)''. You could miss the objective and factual value of the text.
* The ''Skateholder analysis matrix'' figure seems a bit simple. However, the figure 2 is easy and fast to understand and well explained in the text.
* I recommend you make a section for limitations of the process, so you approach even more to the method structure.
* Finally, I think you should place the number of the references 3 and 4 at the end of sentences.

Reviewer 3: S102935
# '''Pros'''
## Highly relevant topic
## Very good, clear and engaging agenda/introduction.
## Good explanation of both Stakeholder analysis and stakeholder matrix.
## The figures give a good overview of the theory and methods
# '''Missing formalities'''
## Remember to add table numberings on your final article
## The annotated bibliography seem like an important part of the article, so remember to do so when finishing the article.
# '''Suggestions'''
## Try to link your subject to other relevant articles.
## The discussion between the stakeholder analysis and stakeholder matrix is well placed, but keep in mind to focus on the red thread between the chapters, when you fill in the missing information.
# '''Additional comments'''
## Looking forward to review your finished article

'''Reviewer 2, s141530''':

*Background Section:
I really like how you have shown the academic background, probably could be even more interesting if you can write a basic practical example. It could be for example a stakeholder analysis regarding a house-building project.
*Figure 1:
This figure is positioned in a way that the reader does not understand the link between picture and Article section. It will be clearer if you mention this picture to the text.

*Stakeholder Analysis:
In my opinion Stakeholder Analysis is a broad topic, due to this consideration, I would suggest dividing this section into other subsections.

*Discussion
It will be interesting to analyze the limitations of a Stakeholder Analysis in real case application. E.g, hidden stakeholders.

*EXTRA
If you would like to provide a practical case. I suggest to present this example in 3 different points of view:

For instance regarding an house-building project.

** Project’s Stakeholders(house)

**Program’s Stakeholders (Renewal of the district)
**Portfolio’s Stakeholders (State investment)

This will provide a link to topics discussed in class during the previous lessons.

Talk:Work Breakdown Structure (WBS)

2015-09-22T18:18:57Z

S142581:

Mette: I like your idea for a topic. I seems like you have a clear idea of what to write the article about and have remembered the structure for a "method article". Maybe you could short mention the Goal Breakdown Structure (GBS) in the article and outline the different.

Reviewer 1: s142581

* The topic was a wise choice, very relevant for practitioners and related to the course.
* Another positive aspect is that it follows the method structure.
* In addition, it has a good structure of sections and you did a good job with the references.
* I would suggest to separate the text into more paragraphs, especially in sections like ''History'' and ''Value breakdown structure''. This way, you could improve the reading flow.
* Also, I recommend you to be careful with “,” and “.”. You should separate some sentences, for example:
** ''Moreover, during the project executions the percentage of steps completed must be included. This ensure better control and guidance in case of any changes during the project development''.
** ''During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM”. In this document WBS was mention as a useful tool for controlling and planning large acquisition projects''.
** ''WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs''.
* Also, you should revise the grammar carefully. For example:
** must includes = must include
** since this tool is use = since this tool is used
* I would suggest that you transform the questions in the ''Main characteristics'' section into indirect questions.
* In addition, be careful with the paragraph spacing.
* You should introduce with a sentence the bullet points at the end of the ''Main characteristics'' section.
* I think you should rephrase the sentence “The most common method for decomposing a WBS are the following methods”. In addition, I recommend that you continue the explanation to every concept in the same line.
* Although you have noted “Picture under construction”, do not forget to numerate them and align them properly in the text. I would also suggest that you mention the figures in the text.
* I think you should use “:” after ''Nothing extra'' and ''Nothing Missing''.
* Finally, correct the spelling of the words ''advantages'' and ''disadvantages'' in the last section title.

Talk:Metra Potential Method

2015-09-22T17:12:04Z

S142581:

Anna: Nice choice of method, you seem to have understood the requirements to both topic and structure, so I don't have any further comments.

Reviewer 1: Alise

* The layout of this article is very nice, and I like that it has pictures to help explain.
* When MPM is mentioned, why write Potential Metra Methods, and not Metra Potential Methods, as stated in the heading?
* Writing the two last sentences about Bernard Roy seems kind of messy when it’s at the bottom of the subject, when you mention him in the beginning without giving him much attention.
* I don’t think you should use “… “after any sentence. (See Overview)
* I found the description in “List of task” not very easy to follow. Maybe structure this in another way?
* Why isn’t the method for calculating the duration of tasks not specified? Doesn’t it include in the implementation of the MPM?
* I had some problems understanding how to calculate “earliest start”
* You have some sentences that could be written better. For example: “It results that bigger is the number of critical tasks with respect to the total number of tasks, lower is the elasticity of the project.” You should write: “The result of this will be that the bigger the numbers of critical tasks with respect to the total number of tasks, the lower the elasticity of the project.” (this is just one)
* Try not to use very long sentences as it makes it more difficult to follow.
* Remember references!
* I like how you have compared the MPM method to both the Gantt and the PERT method.

Reviewer 3: s142581
* The article was very interesting and easy to read. It is very much related to the course and relevant for practitioners.
* In general, it follows a logical flow and it is very well explained. In my opinion, this is especially difficult to achieve when explaining these kind of processes, and you did a good job in this matter.
* In addition, it has a good paragraph structure, and the advantages and limitations sections were a wise choice. Maybe I would present the ''Overview'' section as the first one, or maybe you could change the title to ''Concept''.
* Another positive aspect is that you lean on one example when explaining the process.
* It was also a good idea to state a terminology list.
* I would suggest introducing Bernard Roy (the year he was born and why he is recognized) at the beginning of the first paragraph, and not as a second paragraph, when you have already introduced the MPM. I think it would help the flow of the text.
* You mention that the method can be considered to be half-way between Gantt Graph and PERT representation. In my opinion, this can be confusing if the lector has not previous knowledge of these methods. I would recommend that you mention the source, as it seems a subjective comment.
* In terms of grammar, the text is well written. I just found some words that I think you could supplant. For example, it the sentence “taking into account the anteriority constraints linking these several tasks”, I would replace ''anteriority'' for ''previous''. Other word that you could modify is ''dependency'' in the sentence “taking into account the dependency relationships between multiple tasks”, where you could write ''dependent'' instead.
* In the expression “realizing a table”, I suggest you write “making/doing a table”.
* You make use of the apostrophe when you write ''don’t''. I would suggest to write ''do not''.
* In addition, you could rephrase the sentence “this method only takes into account the schedule aspects, deadlines, delays, etc.” for “this method only takes into account aspects such as scheduling, deadlines or delays”, to avoid writing etc.
* I think you made a mistake when mentioning the three convention rules, since there are four bullet points.
* Regarding the figures, I would recommend that you type "''':'''" after Figure X instead of "''','''"
* In the first figures, you could increase the size, not because it is hard to read, but because it would achieve more importance when reading the text. In addition, I suggest you improve the alignment of the tables, for a better visualization of the process, and numerate them so you can mention them in the text.
* I would also suggest to rephrase the last sentence of the ''Implementation'' section to “It results that the bigger the number of critical tasks is with respect to the total number of tasks, the lower is the elasticity of the project”.
* Finally, even if you mention that you will add a bibliography, I would recommend to integrate the sources in the text with numbers.

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:41:14Z

S142581: /* Last planner system */

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:41:00Z

S142581: /* Last planner system */

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]
In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:40:40Z

S142581:

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===

In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

File:Lps.jpg

2015-09-21T15:39:45Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:39:26Z

S142581:

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===

In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.
[[File:lps.jpg|500px|thumb|right|Figure 2: Illustration of the Last Planner System]]

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:34:48Z

S142581:

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===

In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Limitations==

Regarding the LPS there are a series of limitations. Firstly, the team should have some background training in the LPS and understand perfectly their roles in the process. Although it will create maximum value for the client, this requires training time and cost. In terms of scheduling, if a team member completes a task before it is schedule, the team needs to rethink the planning process. The next task could be done earlier, but it is not because the team member has not planned to do it. This can be defined as losses add up, and gains can never be recovered, and the team does not take advantage of the fast performance of the tasks. However, there can be a clause for which the team member must give notification with 24 hours in advance, if he anticipates the early completion of his task. This way, the team member in charge of the next task can adjust his plans as well.

Regarding the LBS, the incentive to implement this method seems obvious. But studies have concluded that the absence of a common coherent and standardized information system is a main challenge when implementing it. The use of Information and Communication Technology (ICT) tools may solve this problem.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:31:25Z

S142581:

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===

In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:

* Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
* Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
* Building system assemblies: this includes the construction method, support components and building site planning.
* Material costs: cost related to the planned material quantities.
* Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:30:22Z

S142581:

==Overview==

The difficulty of managing the individual flows in the construction process is mostly due to unpredictable conditions, scheduling pressures and the large amount parts involved. This approach analyses how uncertainties and risk are created and how they can be managed by the means of Building Information Modelling and Lean Construction principles.

One of the concepts that more effectiveness has demonstrated in the management of construction projects is the concept of Lean. The idea of Lean is to eliminate what does not add value from the perspective of the customer. In this analysis, the implications and consequences that the use of BIM has in Lean Construction are assessed.

In addition, it is essential to improve the projects management by identifying the risks, planning responses and coordinating the information flow and the resources. In order to give the widest range of solutions to this, other important concepts are evaluated, such as the TFV-model (transformation, flow and value), the last planner system and the location-based scheduling; concepts that are connected and used to mitigate the possible damage inflicted by unexpected situations.

==Risks and uncertainties management with Lean thinking==

===Risk and uncertainty===

From early phases, the overall project should be defined: scheduling, planning, cost, time and resources. But there is other information, a level of uncertainty, which needs to be recorded. Uncertainty can be defined as the difference between the information required to make a decision and the information available. There are two concepts attached to this<ref> ''Graham M. Winch - Managing Construction, 2010'' </ref>:

* ''Predictability'', since the future is not known, and the past can be an invaluable guide.
* ''Complexity'', since it is costly in terms of time, money and other resources.

Risk is the probability of the occurrence of a risk event given its risk source. To define risk, two definitions should be considered:

* ''Risk source'', as an underlying state of affairs
* ''Risk event'', as something given due to the underlying state of affairs

When the needs of the owner and occupants of a building are not met, a risk event can be created from the design phase. In addition, modifying these need during the project, or having a weak communication between the parts, can create the risk event.

In risk situations, there are parameters controlled by probability, known by the decision maker<ref> ''Uncertainty analysis in construction project’s appraisal phase, Ustinovičius, D. Migilinskas, J. Tamošaitienė, E.K. Zavadskas, n.d.'' </ref>. However, in uncertainty situations, parameters are uncertain and no information about probabilities is known. It is clear that construction management organizations do not have precise information, especially when making long-term planning. But it is possible to determine some parameters from experience or statistical data.

The uniqueness of a construction project leads to a high degree of uncertainty. Therefore, project managers must lean on risk management to identify, analyse, monitor and report risks. The project risk management uses four basic concepts to help identify the type of risk:
[[File:cuadro.jpg|500px|thumb|right|Figure 1: Overview of known unknows concept]]

* '''''Known-knowns''''': the risks have been identified and a probability can be assigned.
* '''''Known-unknowns''''': the risks have been identified but a probability cannot be assigned to them.
* '''''Unknown-knowns''''': the risks are the ones identified by someone who associates probability to them, but decides to hide that information.
* '''''Unknown-unknowns''''': the risks have not been identified.

This being said, the purpose of risk management is to help eliminate the unknown-unknowns and decrease uncertainty by having all risks known-knowns. This way, the complexity will be minimized and also the predictability, to some extent.

===Lean Construction===

Lean Construction can be defined as the adaptation of the principles of Lean Production to fit the needs of a construction project. The value is set by the client, and this value consists in the needs, wishes and demands. In order to maximize the values, it is necessary to deliver a product that fulfils the customer expectations at the proper time and quality. Lean Construction is able to achieve this by reducing the waste, this means, to eliminate all that is not relevant for the client’s values. Reducing waste is reducing waste of time, waste in not delivering what the customer wanted, waste in overproduction, etc.<ref> ''Jakob Lemming, Lecture 3: "Lean Construction" from 42286 Planning and Management in Construction, 2015'' </ref>
But to fulfill this waste reduction, the industry of construction has been developing different ideas or processes, continuously trying to find the best solution.

==Methods for minimizing risks and uncertainties in construction projects==

===Transformation, flow and value===

The TFV-model illustrates the different outlooks in project management. In order to discuss the parts of the TFV-model, it is necessary to differentiate the effectiveness, which is to do the right thing, and efficiency, which is to do it right.

This model consists of three concepts:

- Transformation: when the workers are told to do something, but not how to do it. This focuses on effectiveness, leading to low efficiency.
- Flow: the waste between processes is eliminated. It is important to know what to do, before knowing how to do it properly.
- Value: there is a focus on creating value for the client. Here is when the project management should be used.

===Last planner system===

In order to facilitate the TFV-model, the LPS was developed for construction purposes. When managing a construction project traditionally there is a tendency to start the work, even if not all the resources required for the completion of the task are available. The Last Planner System addresses this problem with a break down structure of the schedule.

The method consists in dividing the construction process into three levels: phase, look-ahead and weekly work plan. This is done to provide an even workflow which enables the prediction of durability of the activities.

Firstly, a phase schedule is created, containing the overall construction project with the corresponding deadlines. Then, each representative is required to create a look-ahead schedule to clarify how the activities in the phase schedule should be done. Finally, weekly work plans are created during weekly meetings with the representatives, in which agreements are done about what to do on that week.

The LPS produces predictable workflow and rapid learning <ref> ''Recommended practices for the application of Lean Construction methods to building new australian LNG capacity, Engineers Australia, Western Australia Division, 2012'' </ref>. This creates the maximum value to the owner by eliminating waste caused by unpredictable workflow. It enables contractors to reduce the delivery time of the project and creates commitments among project participants.

But even with the situation where the schedule makes the weekly work plans superfluous, there is another aspect to consider when the foremen are doing the planning on site: the weekly meetings are also oriented to commitment and trust among the parties<ref> ''Building Information Modelling (BIM) in Design Detailing with focus on Interior Wall Systems, Janni Tjell, 2010'' </ref>. This is achieved by letting the workers do the planning and adjust their own management to the overall project <ref> ''Rolf Simonsen, Lecture 4: "Last Planner System" from 42286 Planning and Management in Construction, 2015'' </ref>. This way, an open and easy way to communicate is created.

===Location-based scheduling===

In response to the limitations of the Last Planner System, the Location-Based Scheduling method was created. This enables a more detailed schedule to be established in the design phase, where activities can be performed at the same time, reducing waste of time and resources.

This method aims to secure that under or overloading of resources does not occur. Research studies affirm that LBS is especially advantageous in terms of:

* Understanding the overall work plan and communication with sub-contractors and suppliers.
* Efficient resource flow.
* Evaluation and quality assurance of the executed work.

This follows the line of Lean philosophy and share the advantages of the Last Planner System. It seems logical to assume that the efficient flow of resources in LBS will decrease the level of uncertainty, and therefore, decrease the variability of task durations. This being said, it can be stated that the LBS seems to be an adjunct to the LPS, rather than a replacement.

Locations are important in the construction industry since it is not a systematic repetitive process, but a series of physical locations in which tasks are variable and of different type and quatity<ref> ''Location-Based Management of Construction Projects: Part of a new typology for project scheduling methodologies, Russel Kenley and Olli Seppänen, 2009'' </ref>. The location is the container for data which relates to the project. The LBS is hierarchical so that a higher level location includes all the data of the lower level locations. Each of the locations have a different purpose and the highest level is used to optimize the construction sequence, since the structures of such sections are independent of each other, therefore it is possible to start them simultaneously. The middle levels are used to plan the production flows, and the lowest levels for planning the finishes. This allows the data to be collected at different levels. The location consists of the following data:
- Building objects: components such as elements and sub-systems, that should be included, not only in drawings, but also as a 3D object oriented construction model.
- Planned building component quantities: quantities measured from a 3D model. This way, variations in quantity which occur during construction should be able to be tracked.
- Building system assemblies: this includes the construction method, support components and building site planning.
- Material costs: cost related to the planned material quantities.
- Building system costs: costs of the components that must be included in each location. The labour costs should be calculated based on the actual resource available in the plan.

==Bibliography==

<references />

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T15:26:07Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T12:35:44Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T12:32:10Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T12:27:22Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T12:26:03Z

S142581:

File:Cuadro.jpg

2015-09-21T11:59:16Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T11:58:42Z

S142581:

Minimizing Risk and Uncertainties in Construction Projects

2015-09-21T11:22:46Z

S142581: