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1 und Management im Baubetrieb EGLC-Conference Conference 2008, Karlsruhe Examples of Lean-Construction in Brazil, differences and transferability with the German Construction industry Alexander Hofacker (Dipl.-Ing., MBA) Institut für Technologie (TMB) Lean Construction Universität Karlsruhe (TH)
2 Content Background of the study and data Tools and applications in Brazil (examples of simple tools, 15 steps to implement LC) Generic differences of the industries in both countries Potentials (economically and scientifically) 2
3 1. Background of the study and data ProBRAL-programm 2007/2008 Research exchange and construction site visits in Germany and Brazil (3 researchers from both sides) Best-practices in LC in Germany and Brazil (Fortaleza, Porto- Allegre, Curitiba) Analysis of material & information flows on high-raise buildings Development of the rapid lean-construction quality rating model 3
4 und Management im Baubetrieb 2. Lean Construction applications in Brasil Examples p of simple LC-tool applications 15 steps to implement LC
5 Institut für Technologie EXAMPLES of LC LC--applications in Brazil Andom Motivational payment with self-responsibility for the employees («liberal Taylorizm») Lean literature, to be read by all engineers (compulsory 3 books per year) Fortaleza, , Foto taken by A. A Hofacker 5
6 Institut für Technologie EXAMPLES of LCLC-applications in Brazil Self-responsibility to the employees Voluntary leaders for certain topics, visualization and self-esteam (no extra salary benefits): Securityy Group collaboration (prefeituras) Recycling and waste Agents for the continuous flows on the site Coordinators for client reception p and change g in demand Emotional board: Fortaleza, , Fotos taken by A A. Hofacker 6
7 EXAMPLE: KANBAN (elevator-material flow) The operator puts the cards in order and time when the task shall be done; balancing of bottlenecks and material flow Card number = kind of material, number of floor-levellevel Fortaleza, fotos taken by A. Hofacker 7
8 Institut für Technologie Comparison of selling the construction site: Fortaleza, , fotos taken by A. Hofacker 8
9 15 steps to implement lean construction in a construction company 1. Have the good idea = to define the vision of the client value 2. Organize and clean up the construction site 3. Get to know the market (productivity) performance indicators (external analysis) 4. Get to know the your own productivity performance indicators (internal) 5. Set-up production cells 6. Set-up a clear project planning (bar-chart & and introduction of Last planner 7. New recompensation mode for labour 8. Evaluate the employees 9. Select people 10. Define teams 11. Provide the right equipment to the teams 12. Inform the teams 13. Educate the teams 14. Guarantee quality 15. Create an environment of self-realization and development (highest level of motivation, Maslow-pyramide) Elaborated and successfully applied by Willy C. Branco, Belem 2008; Translated by A. Hofacker,
10 Institut für Technologie und Management im Baubetrieb Some of the main generic differences of the i d t i iin b industries both th countries ti Brazil Flexibility and adaptability Germany Mechanization and trend towards service providers
11 Overview of generic differences: Brasil Germany Organisation on site one company Multitude of companies Language One language (Portuguese) Many languages Labour Quality Low education level 67% <4yearsschool; school; low-cost salaries, increasing tendency - ISO partly introduced, - national quality programs PBQP-H - No thermal isolation regulations High education level, e.g. carpenter:9 +3 years Labour is a main cost factor - Higher quality standards & certifications - Construction norms (VOA, VOB) - Thermal isolation norms (Wärmeschutzverordnung) Standardization Initialization of High degree of standardization (prefabricated concrete, electrical shafts) modularization and standardization (prefabrication, logistics (pallets), standard packaging Mecanization Vertical transport: t lift, Cranes, high h mechanization otherwise hand-barrow degree Competition Mainly local European-wide competition Profitability good EVA-ratio higher profit margins than in Low-EVA ratio (highinvestment in machines) Germany (~ 2 times higher) Low profit margins (due to interviews & market analysis) Source: Table developed by researchers in Brazil & Germany; construction visits & literature research, A. Hofacker M. C. Freitas B. Fernandes; ProBRAL
12 Some common things Many small and mid-size companies (<200 employees, appendix) Lack of clean workplaces on construction sites is valid for both sides Production losses in terms of working breaks of employees and low motivation 12
13 Lean Construction Brazil Initiated in 2-3 regions Strong emphasis in processes, organizational improvements and application of concepts without significant additional mechanization, strong emphasis on flexibility and organization Germany Initiated only in few companies and first last-planner concepts. Lean-Construction mainly applied in terms of standardization and quality Higher difficulty to apply lean- concepts due to higher oganizational complexity, conservative mindsets, contracts and high degree of mechnization organization, process, flexibility, project mgt. quality and standardization 13
14 Potentials, chances and vision for transfering LC practices: Vision: 1. Focus on processes, quality, standardization and value adding and waste reduction, training of your employees 2. Organizational creativity (e.g. in Fortaleza & ) 3. Analyzing further bottlenecks for higher value-creation 4. Additional mechanization linked with training on valueadding acitivities, and continuous improvement Strong point in Brazil Strong point in Germany / Europe Question: How can scientists and the industry contribute to implement and transfer the potentials and added value through LC? Thank you for your attention; time for discussion 14
15 und Management im Baubetrieb Appendix The German Construction Industry (nr. of employees/company size) Additional boundary conditions (Brazil-Germany) Education level of Brazilian labour in Consturction
16 16 Institut für Technologie Employment in the Construction Industry in Germany - Employees according to the size of the company ,433, a. more , Source: Stats Office, June figures
17 Other boundary conditions Brazil: Abundance of land, except for some concentrated city areas; abundance in work-forces & low labor cost Few infrastructure-architectural architectural city planning (or exceptions available), e.g. to mix high-raise buildings with single housing, style of construction etc. Tendancy of rich people, to by large apartments in high-security high-raise building, in prestigue areas; inner-city concentration. Poor people build small houses in the country side and ruralurban areas, typically no under-ground construciton. Brazilians built and buy apartments and houses. There is few renting. For them it s part of the social security, status and safety. Price notion (general) for houses and apartments (2008) Prices for house construciont, e.g. in Itajaí, ~500m2 + house, (in 2008, about Euro) Prices for apartments vary and largely depend on the location, e.g. in Curitiba for 75m2 from Euro to Euro for luxury apartments (e.g. one apartment = 1 comlete floor and 150m2) Germany: Shortage of land; high labour cost Stick infrastructure-local-government regulations of how to built and where to built. Exceptions are difficult to obtain. Often land is reused, thus old buildings are reformed or rebuilt. Tendancy of rich people to have their own house, in green areas in the countryside, but close to metropoles Medium and poorer people live in high-raise buildings and apartments Renting houses and flats is a common alternative to buying apartments. Price notion (general) for houses and apartments in metropolitan areas: Houses (200m2), starting from Euro in metropolitain areas; cheap social housing e.g. Deutsches Reihenhaus AG Euro. Apartments, starting from Euro 17
18 Characteristics of employees of the construction industry in Brazil Education degree in Construction, Brazil High-school (Abitur) finished; 1% High-school started but not finished; 3% 4-8 years of school; 29% Source: Qualidade na prática, conceitos e ferramentas, P. H. Laprote Bmbrozewicz, 2003 Illiterate; 17% up to 4-years of school; 50% illiterate up to 4-years of school 4-8 years of school High-school started but not finished High-school (Abitur) finished 18
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