Presented at the 5th Annual Lean Construction Congress.

This material may be copied freely as long at it includes the copyright statement: Copyright 2003 Lean Construction Institute www.leanconstruction.org

A TRADE UNIONS VIEW OF THE BUILDING PROCESS.

Gunde Odgaard, General Secretary of the Building-, Constructionand Woodworkers Cartel in Denmark. This presentation paper should be regarded as a guideline for the oral presentation, and not necessarily cover all items touched upon in the written presentation. INTRODUCTION The paper presented to this conference and this presentation reflects the views of the Danish trade unions and of the International Federation of Building- and Woodworkers trade unions (IFBWW), representing some 11 million construction workers around the world. TRADE UNION OBJECTIVES It may at first seem a little strange that a trade union takes interest in a concept such as Lean Construction. However, a construction workers trade union has the primary objectives to create more and better jobs. We see Lean Construction as one means among many to achieve these objectives. In Denmark some of the biggest construction companies are already using the Lean Construction concepts and other similar concepts for organising the building process. This alone does that we as trade unions must engage ourselves in the new ways of organizing the building- and construction process. THE CHALLENGE IS ALSO TO INCREASE PRODUCTIVITY In Denmark productivity in our industry has been stagnating for the last 30 years. Therefore the construction industry has come under pressure from the government and from the main customers to improve this situation. Also if you have an industry with a stagnating productivity, the possibility for creating more and better jobs gets more difficult. We believe that the focus on processes resembled in Lean Construction is where the major improvements in terms of productivity, quality and work satisfaction can be achieved.

Presented at the 5th Annual Lean Construction Congress. This material may be copied freely as long at it includes the copyright statement: Copyright 2003 Lean Construction Institute www.leanconstruction.org

Primarily by improved planning and cooperation both vertically and horizontally in the building process can we take the necessary steps towards increased productivity. Speaking from a Danish point of view this is in my mind beyond any doubt. And with the evidence from the first building projects using Lean Construction in Denmark there is even more reason to believe that we are on the right track, as we see how productivity gains in these projects. BETTER FOR THE CONSTRUCTION WORKER The paper that we present here is not in any way trying to be scientific. Nevertheless we have been interviewing some 30 lead men about their experiences with Lean Construction concepts. The conclusion is that they are positive towards the ideas. The construction workers can see Lean Construction concepts and especially Last Planner as useful tools to achieve a better building process. In the lead mens experience a tool like Last Planner has been missing, and using Last Planner has made work easier and faster and does not, in the Danish case, lead to lower wages. On the contrary there is much evidence that it leads to higher wages. Another very important side benefit is improved health and safety conditions on the building site. NEW SKILLS AND COMPETENCIES. Much management regarding the employees starts at the top and only rarely reaches the bottom of the company or organisation. This is especially true for the construction industry. It appeals to a trade union that Lean Construction focuses on the interactions on site and has the construction workers at the center for creating value for the customer. Two German philosophers had some of the same ideas about 150 years ago regarding who creates value! We believe that Lean Construction concepts is a feasible way to create a better building process for all actors involved. However, in our view the building workers must be trained to perform according to Lean Construction concepts. Being a good bricklayer, carpenter, plumber etc. is not necessarily enough to be a good building worker in a Lean Construction process. New and more skills in the realm of cooperation, planning, IT and communication are therefore essential to this whole idea.

Presented at the 5th Annual Lean Construction Congress. This material may be copied freely as long at it includes the copyright statement: Copyright 2003 Lean Construction Institute www.leanconstruction.org

It is important that labour is not merely regarded as a variable cost, but must be regarded a fixed cost. From this follows that construction workers must be continuously trained and up qualified to meet the demands of the industry. You do not hire and fire at a random basis. Life long learning on the basis of a solid apprenticeship is a task for the company, the government, the employers organisations, the trade unions and for the individual construction worker. This is an ambitious view on the future construction worker, who is able to take on the tasks outlined in Lean Construction. As for today there is only a few developed countries who have the possibility to organise the building process in terms of Lean Construction. Being a construction worker is in most countries an easy way to a job if you have no qualifications, and there is no other possibilities. A job as construction worker is a last resort with a very low status. The construction workers are hired at random on a daily basis. In the trade unions view, this leaves no space for Lean Construction and Last Planner ideas. It is very easy to ruin an industry like construction. You just take in unskilled workers, pay them badly and dont listen to their ideas and recommendations. This will attract exactly the kind of people any sane manager of any sane company or organisation anywhere would want to avoid. DECISION-MAKING AND RESPONSIBILITY MUST BE DELEGATED TO THE LEVEL OF THE CONSTRUCTION WORKERS Construction workers must be given the necessary authority to take decisions. There must be delegated decision-making power and responsibility down to the building workers on site. They must be given room and responsibility for making their own planning and coordination of the tasks. Management on all levels must be prepared to delegate these competencies, if Lean Construction is to have full effect. Often management, and especially middle management, are not prepared for this absolute prerequisite. It is a sign of bad management if a company has employees who in the eyes of the management are not able to take part in planning the production process on a building site. The days of: Do what you are told by your superior must be over if Lean Construction is to succeed. The whole idea is that the participants in the building process can make their own decisions inside a common framework with shared goals.

Presented at the 5th Annual Lean Construction Congress. This material may be copied freely as long at it includes the copyright statement: Copyright 2003 Lean Construction Institute www.leanconstruction.org

TASKS FOR THE FUTURE In the Danish trade unions we hope and we also believe, that Lean Construction will prove itself even more instrumental when facing the productivity problems of our industry. It is therefore an objective to make the products of the building and construction industry better and less expensive. At the same time we want to develop our industry to a place where we can create more and better jobs for a skilled workforce. The task for the future is to make these objectives go hand in hand. In cooperation with research institutions, employers organisations, architects, engineers, the government, individual companies and many others, we try to achieve these objectives - and we are well under way.