Continuous Improvement

Eliminating unnecessary waste can reduce the time and cost of construction. See eight types of waste that can change the bottom line.

Owners, developers and EPC contractors are all faced with the daunting task of delivering renewable energy projects on time and within budget. One way to achieve schedule and cost savings is to implement processes aimed at eliminating waste. When implemented early in the project and diligently followed throughout the project’s lifecycle, continuous improvement efforts can help construction teams avoid costly rework and schedule delays.

One of the most valuable things about a culture of continuous improvement is that it encourages people to look at their work, identify waste, and creatively redesign processes and systems that eliminate this waste. It is powered by people, their ideas and the drive to make things better.

Eight types of waste
To reduce the time and cost during project construction it is important to identify and monitor the “eight types of waste” which can be rememberd with the acronym, DOWNTIME. 

Each type of waste manifests itself in different ways, in different areas, and different phases of construction; however, some are more costly than others.

Defects
Doing an activity right the first time is a primary focus of both safety and quality. Eliminating defects prevents re-work, saving both time and dollars. It can also help project teams recognize hazards and prevent injuries. Defects can be limited by the application of standardized work plans, stringent quality control, a full understanding of work requirements and customer needs, and simple job aids such as checklists. This culture can be established up front on a project through detailed work flow and trade flow planning.

Overproduction
By overproducing, teams spend additional resources on constructing something that is not needed. Additionally, working ahead of sequence can backfire if the design, scale, or scope of the project changes during construction. Detailed planning and daily coordination to establish a reasonable work flow can help to greatly reduce the amount of over production that occurs.

Waiting
Waiting is actual downtime, occurring whenever work has to stop for any reason, including equipment failure, waiting for necessary approval to proceed, or running out of a critical part or component. Picture the idle team member waiting in an idling truck – double the waste! Proper planning and communication, consistent quality and supply control, and employee cross-training can all help reduce bottlenecks and limit this form of waste.

Non-utilized Resources
Sometimes the volume of information exceeds the requirements of the project. This extra effort can be physical, electronic, paper, or otherwise; but in each case effort and resources are wasted on performing work that does not add value for the project or the customer. To make the most of what the team can provide, it is critical to empower employees to focus on value-added work that best supports project and customer goals.

Transportation
This type of waste is caused by moving things around. Simply stated, transportation should be limited to the minimum number of miles, feet, or inches to reduce fuel, equipment, and labor costs. Again, planning and communication can control transportation issues, including simplifying processes, handling components less often, and making distances between steps as short as possible.

Inventory
The actual problem here is having too much inventory. Just-in-time production, in which products are made/delivered only when they're needed, eliminates the waste of storing, double handling, and shrinkage caused by weather, damage, theft, etc. This concept is a balancing act, where too little inventory or inadequate control of transportation can create a separate issue – waiting for parts. Understanding customer needs and having contingency plans are critical to balancing inventory and producing enough to satisfy the downstream team member. 

Motion - People and Machines
By observing the motion of people, parts, and equipment we can see instances where having to move around too much can slow a process down significantly. In addition, wasted human motion leads to fatigue which can lead to injury. To help project teams work smarter and safer a solution is to improve the layout of work sites, making it easier to reach tools, parts, and equipment. Standardized work processes and a neat and organized work area can also maximize staff effort and motion.

Excess Processing
This involves any unnecessary effort in completing a task: double-handling, unnecessary steps, making too many copies, etc. Whatever the root cause, the result is wasted money, time, effort, and resources. The answer is to closely examine processes and correct them by implementing standard operating procedures, improving documentation, and doing everything possible to shorten processes without sacrificing quality.

By recognizing DOWNTIME you can take corrective actions to limit waste and continuously improve. A culture of continuous improvement allows teams to perform work safely and correctly with minimum resources, ultimately helping owners, developers, and EPC contractors be more agile, productive and profitable in the marketplace.