Unlike manufacturing, the AEC industry has so many more participants and variables which can make practicing JIT extremely difficult, although it is still achievable with deliberate effort. It is said that without a predictable and reliable schedule, just-in-time can be near impossible to facilitate logistically, but this is also true with almost everything else we do. The key to implementation is enhanced stakeholder collaboration, deliberate approach to planning and execution, while also practicing continuous improvement at every step.
JIT projects take into account the entire supply chain, at least a lot of it, and require the cooperation of multiple organizations to work together to minimize overall waste. Although initially JIT systems can be perceived to add cost, such as splitting a delivery into multiple, it can actually result in cost savings with the reduced waste of managing larger batches and increasing the flow of work. An example of this would be to break up a large delivery of drywall to reduce the burden of finding places to store, double-handle and replace stored material that inevitably gets damaged.
Can Just-in-time Really Help Our Work?
JIT can be counterintuitive to how a lot of projects are managed where buffers are seen as an important element for success, and they are. When working towards JIT implementation, reasonable buffers should be integrated into the flow of materials and information – plan for success, instead of forcing an unmanageable system.
Working towards JIT production, directly improves schedule, cost, quality and safety by removing many forms of waste we experience daily. And for those who say that JIT isn’t achievable, take some time to look back at one of the best examples of JIT implementation, the 102 floor (plus one below grade) Empire State Building. Without JIT thinking, the project never would have been designed, engineered and constructed in 20 months. And one of the most beautiful things about the project was that not only were materials delivered as needed, it wouldn’t have worked without JIT engineering and design!
Implementing JIT
Implementing JIT requires a strategic and intentional management approach that can be as complex as practicing for operational excellence or as simple as being more considerate as to when and what condition materials or information are supplied.
Understanding the value stream on projects, including the parts of the supply chain that drive the flow of work, are essential to implementing the required logistics to achieve JIT. This typically requires the cooperation of multiple organizations to align and execute.
One of my favorite shares is “Analyzing the Empire State Building Project from the Perspective of Lean Delivery System” by S. Ghosh and K. Robson is a must read for teams who are thinking about implementing JIT. This will set the stage for what good looks like and more importantly how a project first approach really needs the entire team to make the biggest impact.
JIT Techniques
Understanding the delineation between the idea (seamless cooperation) and the tool (logistical flow) is critical. Without understanding and clarifying both elements in the plan, implementation is much more difficult as your plan will miss a key structural component.
From a logistics perspective, a Supply-chain Management Plan should be leveraged including:
- Strategy and approach – Consider improved work packaging, modular construction, material availability, cost fluctuations, owner/resource constraints, site logistics, stakeholder alignment and other best practices.
- Project demand and supply analysis – Identify the project flow, takt plan, and level pull the work to identify what is needed, how much is needed and when. Use Line of Balance (sometimes called Location-based planning) to map the design and construction. And pull the work with stakeholders using pull planning. Learn and align from execution using the Last Planner System®.
- Scope sourcing & procurement – Extend supply chain management by working with partners, manufacturers, adjusting batch sizes, modified logistics resources, unique production sizes/reduced material variation, specific logistics contract requirements, and consolidate procurement sources.
- Logistics and material flow – Deliberate inventory/laydown management, deliveries driven by takt planning, scope kitting, off hours delivery/staging, off-site laydown, and 5S. Don’t forget about your information logistics and aligning design production schedules.
From the perspective of enabling a high-performing team, leverage the opportunity to think about and work towards JIT flow of project information and materials. As we say at Aecon, “build better together” with intentional collaboration to reduce waste for all stakeholders and practice a project first approach. Use the concept as a mechanism to focus on what is needed, how much is needed, when it’s needed.
In addition to logistical planning, driving team cooperation and engagement through collaboration should include:
- During scope buyout, ask if deliveries can be spread out – you might find that all you need to do is ask. And in the event that additional costs would be incurred, consider the offset of unintended waste that is incurred with having to manage large deliveries.
- If you can’t create a true JIT system, fake it by leveraging offsite laydown or storage to create a condition that flows one site which is where you have the biggest impact. This can still provide enormous improvements to flow where is matters most.
- Practice on some easier scopes which are typically bulkier, readily available, logistically harder to move, and impede flow on site such as rebar, steel, framing/drywall, mechanical and plumbing – although every project can be different.
- Challenge the function, focus on a single scope and consider multiple levels of your supply chain. As written in Discovering Hidden Profit by Marks and Martichenko, our traditional method of managing our supply-chain is heavily function focused which leads to many unintended consequences and lots of waste. When we are more deliberate with our approach to integrate project elements as one piece or prefabricated, we mitigate our waste and add value through thoughtful production.
- Intentionally plan to learn, by leveraging JIT to identify workflow challenges and opportunities for continuous improvement. Without planning on multiple layers of improvement within each component of the plan, JIT will not work.
- Create a condition to encourage teamwork as each participant in the flow of work needs to align for success. Think about forcing some of this discussion and planning contractually. Always drive for a project first approach.
A great resource Designing Buildings provides a wonderful description to learn about Line of Balance (LoB).
See Takt Planning 101 for setting up the plan in a way that allows successful JIT implementation.
Conclusion
Generally speaking, JIT management requires deliberate design, systems to enhance flow, standard work, intentional improvement, aligned stakeholders, and engaged employees to caress the production process. One of my favorite sources to learn and teach an ideal state is “Design for Operational Excellence” by Kevin Duggan, 2012.
I have implemented JIT with multiple scopes on various projects, but the effort required a deliberate approach to challenge the norm, work holistically as a team, and sometimes even pay for the enhanced logistics management – but it was always worth the effort!
Understand that just-in-time doesn’t necessarily mean that materials arrive to the minute needed. Just-in-time is not always easily practiced as it requires a deliberate approach between various stakeholders – establish this before venturing too far with JIT. Being able to clarify and manage buffers is half of the battle to successful use which is achieved through stable demand and forecasts. And without a strong management system including quality assurance, JIT is less impactful when it comes to making work ready, reducing waste and adding maximum value for the project.