1. Rework Reduction
Through the Use of
Construction Lean Improvement Program (CLIP)
a Case Study in New Australian Embassy in Jakarta (AEJ) -
Leighton Contractors Indonesia & Total Bangun Persada
Joint Operation
Firdaus Basbeth
DMB Student of University of Padjadjaran Bandung
QIK 2014 International Conference
Ascot House Melbourne February 21 2014

3. Construction Traditional Measure
(Result Based)
▫ Costs
▫ Schedule
▫ Meeting code

4. Construction Lean Improvement
Program
• Result and Process Based Measurement
▫ Costs
▫ Schedule
▫ Meeting code
▫ Cycle time
▫ Rework
▫ Waste
LEAN
RIGHT THE FIRST TIME

5. Chancery and Staff Residence, Jakarta
Project Description
The project is Total plot area 40,000m2, total covered floor area 50,106m2 of
which 43,500m2 is building and 6,600m2 is pergola and parking. The scope of
work includes Partial Design, Engineering, • Procurement, Testing and
Inspection, Construction a Compound, consisting of:
o Basement, plus 5 floor chancery building of approximately 26,700m2,
o Head of Mission residence,
o 32 number staff residences,
o Swimming pool,
o Recreation facilities,
o Guard houses,
o Ancillary service buildings,
o Landscaping,
o Security walls,
o All associated works in accordance with drawings, specifications.
The construction duration is 36 months until 2016. It is still ongoing and under
close monitoring by project management.

6. INTRODUCTION
• Construction traditional measure (Result Based)
vs Performance Measurement System (Process
Based)
• Construction Lean Improvement Program
▫ Lean Thinking
▫ Seven Waste
▫ 5S
▫ Labor Competency Issue
▫ First Inspection Method

7. LITERATURE REVIEW
Reference Topics and quote
Saad Sarhan and Andrew Fox,
(University of Plymouth, UK)
(2012) ‘Performance
measurement in the UK
construction industry and its
role in supporting the
application of lean construction
concepts’, Australasian Journal
of Construction Economics and
Building, 13 (1) 23-35
Benefits could be achieved from adopting the
lean construction (LC) approach (Arbulu and
Zabelle, 2006). However, the application of
lean principles to construction has not been
successful due to the failure to use
appropriate process performance
measurement systems (PMS).

8. LITERATURE REVIEW
Reference Topics and quote
Alarcon and Serpell, 1996 Results-based performance preferences
measured in projects, specifically costs and
schedule, are not appropriate for continuous
improvement because they are not effective in
identifying the root-causes of quality and
productivity losses.
Professionals and managers in the
construction industry still have a tendency to
measure performance in terms of time, cost
and meeting code, as opposed to process
performance measures (e.g. cycle time,
Rework, waste)

9. LITERATURE REVIEW
Reference Topics and quote
Henny Pratiwi, M. Faiqun Niam,
2012.
is said that 62% of construction labors in
Indonesia is an unskilled labors
Koskela (1992) (Garnett et al.,
1998; Mossman, 2009a).
Lean thinking is a philosophy based on the
concepts of lean production, when applied to
construction, it could lead to improved
performance.
(Garnett et al., 1998; Senaratne
and Wijesiri, 2008).
Proposed the need to review construction
production as a combination of conversion
and flow processes to remove waste, when
traditional thinking of construction was only
focusing on conversion activities and ignoring
flow and value considerations

10. LITERATURE REVIEW
Reference Topics and quote
FACTORS INFLUENCING
CONSTRUCTION PRODUCTIVITY
IN THE INDONESIAN CONTEXT
Sugiharto ALWI
Senior Lecturer
School of Graduate Studies
Construction Management Program,
Proceedings of the Eastern Asia
Society for Transportation Studies,
Vol.4, October, 2003
The majority of the Indonesian construction labour
force are self-employed, and are often farmers from
rural areas. They are low skilled, earn low wages,
and hence are less effective (Kaming et al., 1997).
These young workers enter the pool of construction
workers, for it is the only industry that can provide
employment for those without any qualifications. It
is reported that approximately 86% skilled workers
in Indonesia are informally trained by a senior
craftsman
Henny Pratiwi, M. Faiqun Niam,
2012.
62% of construction labors in Indonesia is an
unskilled labors

11. Lean Thinking
Lean thinking is a philosophy based on the
concepts of lean production.
Lean is focused on the achievement of three key
outcomes:
1. Maximizing value from the view of the
customer
2. Eliminating waste (non-value adding
processes)
3. Creating smooth and reliable flow of activity.

12. Benefit
Tangible benefits
•Productivity 16 – 40 %↑
•Refurb lead time 25%↓
•Pre-construction lead time (time between client approval and start of
works on-site) ↓
•48%
Intangible benefits
•Best practice set-up, methods introduced, operation & organization
improvements,
•waste reduction, delays & disruptions reduced, snags reduced,
communications
•improved, Team dynamics improved, partnering benefits, skills
transfer in the industry

13. Seven Type of Waste
1. Defect
2. Over Production
3. Transportation
4. Waiting
5. Over Processing
6. Motion
7. Inventory

14. Seven Type of Waste
1. Defect
2. Over Production
3. Transportation
4. Waiting
5. Over Processing
6. Motion
7. Inventory

15. Implementation Strategy
1. 5S
2. Measuring and Monitoring the Performance of
• NCR
• Rework
• Waste
3. The First Inspection System
4. A Solid and updated QA Plan
5. Recruitment based on labor competency plus
continual training.

16. 5S
Strategy for creating a well organized, smoothly flowing
process. It has been applied in the shop with great success.
Masaaki Imai says, “If one is not doing 5S, one is not doing
lean.”

17. Benefits of 5S
• Increases organization and efficiency
• Avoids wasted motion
• Increases safety
• Eliminates unnecessary inventory
• Offers improvements at an inexpensive cost

18. METHOD
The research is a Case Study in Leighton
Contractors Indonesia in New Australian Embassy
Project (2013 – 2016)
Primary and Secondary Data are gathered using
both qualitative and quantitative approaches, and
interview

19. RESULT
Total NCR and Root cause

20. RESULT
The Root cause

21. RESULT
Total NCR in Two Different Area

22. RESULT
Total NCR in Chancery

23. DISCUSSION
• In the construction industry, defect or rework is a challenge that
affects the productivity of a project. Additional resources are
required ie: labor, materials, and energy beyond what is budgeted
had the work been done right the first time – not to mentioned
potential risk with respect to quality and safety.
• The New Australian Embassy Project has in place and continually
updates their Quality Plan. Improvement activities can be seen from
the frequency of Non Conformance Report.(Rework required.)
Training to up skill labor to LCI standards, Internal Quality Audits,
and increased management attention has been a focus the last 6
months.

24. DISCUSSION
• The New Autralian Embassy in Jakarta (AEJ) implemented the First
Inspector System (FIS) – by putting full responsibility of the quality
of product delivered to the supervisor and foreman, so by the time
the quality inspector come to check the work, the variation from
specification will be the minimum. The results have seen the non-
conformance reports reduce by 57%. The saving for the project is
USD$20,000 or Rupiah 240mil.

25. DISCUSSION
• The Construction Lean Improvement Program Works in Chancery
Area in the Project. Suggestion to be Implemented in some others
construction areas in the Project, with the additional strategy of : 5S,
First Inspector System, Performance Monitoring (Process Based)
Continual Training on the Labor to maintaining quality of the
product.
• Buy in from Project Manager and its implementation strategy need
to be in the first place – stated in Quality Plan.

26. DISCUSSION
Rework / NCR Reduction in CLIP include the following
processes:
•Rework tracking and main cause classification: detecting and
identifying the rework that occurs and captured, investigate the causes
in a database that used collaboratively by the client, contractors and
designer.
•Corrective action : developing options and actions that will bring
about changes in the project management system with the goal of
eliminating the root cause and reducing construction rework
•Evaluation of the effectiveness of the corrective action taken.

33. 33
Thank youThank you