DMAIC is the problem-solving methodology behind Lean Six Sigma. As a cycle, it consists of five vital actions:
PROJECT SELECTION IS CRUCIAL FOR SUCCESS
Before beginning any process improvement project, it’s vital that you choose projects that are good candidates for improvement. This will set you up for success. A good project for improvement will always:
- Have an obvious problem within the process
- Have the potential to result in increased revenue, reduced cost or improved efficiency
- Have collectable data
The industry is broken.
Construction labor efficiency and productivity has decreased, while all other non-farming labor efficiency has doubled or more since the 1960s.
Currently, 70% of projects are over budget and delivered late. The industry still sees about 800 deaths and thousands of injuries per year.
Dodge Data & Analytics recently benchmarked the current state of capital project delivery performance and found a statistically significant correlation between use of Lean methods and better project outcomes. High Lean intensity projects were three times more likely to complete ahead of schedule and two times more likely to complete under budget.
To establish a benchmark, eighty-one owners responded to Dodge Data & Analytics’ Owner Satisfaction & Project Performance survey by answering questions about their perceived best project and a typical project in the last three years — providing data on schedule, budget, quality and safety performance as well as information on how the project team was organized, the commercial terms for the project and the management methods used. Continue reading “Lean Projects are Three Times More Likely to Complete Ahead of Schedule According to Dodge Data & Analytics’ Research”