Lean production in investment-construction industry. Adaptation to phases of customer business cycle

Abstract

Abstract Lean production is being effectively used in many areas. Construction sector has its own conceptual differences such as necesssity of relocation of materials and production divisions between construction sites. Besides, every construction project is unique in a sense that even a standard project requires consideration of local conditions, and differs in terms of resources delivery, storage conditions, etc. Construction project involves many different parties (project designer, contractor, subcontractors, and suppliers), creating numerous management challenges. Lean production technology in this situation recommends the interpenetration of customer and contractor units. However, such a measure only partally increases flexibility of the construction industry, but does not eliminate the reasons for the descrepency between the periods of activity of customers and contractors. The article discusses ways to ensure maximum adaptability of the construction firm to the changes in customer business cycle. Construction companies are invited to create supersystem of common universal production, labor, and service units, which will significantly increase the flexibility of the construction industry. In addition, lean production technology should be complemented with tools for monitoring changes in the physical, communicaiton, technological and design activities of construction customers.