UNLOCK EFFICIENCY AND SUSTAINABILITY IN THE CONSTRUCTION INDUSTRY

In this article we present a success story in the Lean Six Sigma approach, in the Construction sector. Going through all the phases of the DMAIC cycle, we will explain the steps that led to this initiative being a success.

In the competitive world of construction, efficiency and value for money are key. This article explores how a construction company achieved remarkable results through the application of Lean Six Sigma methodologies. Discover how it was possible to reduce storage space by 30%, reduce stock costs by 26% and establish an efficient system to manage various repairs.

The Challenge

The DMAIC cycle

Define:

In the initial phase, the project objectives were clearly defined. The main challenge was the inefficient use of storage space, resulting in high costs and difficulties in locating materials, as well as the underutilization of materials already used, but capable of being recovered.

Measure:

Detailed data collection and measurement processes were implemented to understand the extent of the problem. This phase revealed that storage costs were harming the company’s profits, with stock levels exceeding real needs and, on the other hand, there was a great potential for reusing materials.

Analyze:

The analysis phase revealed the root causes of storage inefficiencies. At this stage, gaps were highlighted in terms of the management of warehouse assets, with these not being categorized effectively, as there was no distinction between materials, which depended on the frequency of use. The organization also did not have the definition of a sustained materials recovery process, capable of meeting production needs and with the ultimate objective of reducing stock and consequently costs.

Improve:

Armed with data-based insights, several solutions were implemented, including a well-organized storage system based on clear criteria to categorize materials, using clear and effective work instructions. This phase also involved the creation of an area in the warehouse for repaired items.

Control:

To ensure the sustainability of these improvements, robust control mechanisms were introduced. Control charts, a system of regular audits and employee training programs, which were implemented to maintain the storage system and stock levels optimized.

Results and Benefits

The results were nothing short of remarkable. At the end of the project, there was a 30% reduction in storage space requirements, resulting in substantial cost savings. Stock costs were reduced by 26%, allowing for a better allocation of financial resources. The creation of an organized area for repaired items streamlined operations, reducing waiting times and delays in delivery times.

Project Impact

Perhaps the most impressive aspect of this Lean Six Sigma project was the fact that, as a result of the ABC analysis, it was possible to categorize the items based on their importance and repair potential and, by working on the most relevant items, opportunities for annual savings of up to 1 million euros. This analysis provided a roadmap for future cost reductions and process improvements.

Conclusion

In a competitive industry like modular construction, every centimeter of space and every euro saved is important. This success story of applying Lean Six Sigma methodologies and tools demonstrates that with the right approach and a commitment to efficiency, significant improvements are possible. The achievements in reducing storage space, reducing inventory costs and simplifying repair processes serve as an inspiring example for the entire industry.

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