New approach brings efficiency and cost savings to construction site operations
Lemminkäinen has successfully applied Lean Six Sigma thinking to many development projects in various businesses.
The benefits are immediate, as new ideas are turned into action at construction sites. Operational development through LSS has resulted in significant cost savings.
“In practice, LSS means doing the small things better. It is a tool that deserves to be used on a daily basis,” says Juha Vättö, Vice President, Building Construction, Russia. He was one of the participants in Lean Six Sigma (LSS) training. Even though he has extensive experience in the industry, he feels that the training clarified his thoughts.
“At construction sites, the careful planning and scheduling of work serve to eliminate unnecessary storage and ensure timely alteration work, for example. Making changes too late often means taking a few steps back and doing the same work again,” Vättö explains.
Punctuality and conscious choices
Financial monitoring is also important at construction sites. “Sufficient cash flow must be ensured. It’s also important that additional work and alterations are discussed in a timely manner to ensure the right to speak,” Vättö adds.
The LSS approach has helped Lemminkäinen reduce costs in some areas by as much as 15% in Russia. In construction projects, the total amounts are considerable, so cost savings matter. “We were able to markedly improve the profit margin in the project, and the return on investment improved as well,” he explains.
Lean Six Sigma
- Six Sigma is a systematic way of working based on statistical methods to reduce process errors and deviations.
- Lean focuses on streamlining processes to reduce unnecessary work and the amount of tied-up capital.
- Lean Six Sigma is a way of thinking that combines the best aspects of these two approaches. Lemminkäinen has successfully applied Lean Six Sigma thinking to many development projects in various businesses.