The Construction Industry is one of the world economy’s largest sectors. It employs about 7 percent of the world’s working age population. Over $10 trillion is spent on construction-related goods and services every year In India. it is estimated that the Construction sector currently contributes to approximately 6 – 7 per cent towards the Gross Domestic Product (GDP). It is anticipated that this share would almost double by 2025. It is expected that the growth in this would also help generate significant new employment opportunities.
However, the Construction Industry is known to have an intractable productivity problem. The key reasons for much of this problem seem to be that the industry is highly fragmented, has inadequate design processes, insufficient skilled workforce, is perceived to underinvest in skills development, R&D and innovation.
These factors result in the poor management of many construction projects, often resulting in significant delay in project timelines, cost overruns and other committed deliverables.
Adopting Lean Tools and Principles can helps the Construction Industries to improve their operational efficiency, promote collaboration with business partners on projects and thus enhances their ability to deliver projects as per the commitments made to customers more consistently. This would in turn also help the organizations improve their overall business performance.
ILCE is a non-profit organization formed by a group of reputed organizations in the India Construction & Real Estate sector. The ILCE Board consists of leaders from these organizations and IIT Madras, who is the knowledge partner.
ILCE is committed to help improve the productivity in the Construction & Real Estate sector. We do this by helping organizations learn and share best practices in the area of Lean Construction. Over the past 8 years ILCE has invited several internationally acclaimed leaders in the subject of Lean Construction to help us learn and develop global best practices in Indian Construction & Real Estate sector.
Improving labor productivity in all the trades of construction has been found to be very challenging as compared to the manufacturing industry due to migrant labor, low skills and lower penetration of technology and mechanization at the work sites. The high percentage of wastes generated in construction projects also puts tremendous pressure on natural and human resources. Adopting Lean will help in improving our operational efficiency and collaboration with stakeholders to meet our committed project deliverables.
The success of Lean implementation is possible only when there is a cultural change brought among all the project stakeholders to strengthen team spirit and drive improvement initiatives. Lean helps meet customer commitments and improve business outcomes.