Reduction of Non value-adding Activities associated with Variation Orders through Lean and Agile Thinking

Ruben Ndihokubwayo, Cape Peninsula University of Technology
Theo Haupt, Mississippi State University

Abstract

Purpose: This study is a pilot one investigating the existence of waste arising from variation orders and its reduction by means of lean and agile concepts. Design/methodology/approach: A literature review focused on exploring the conceptual definitions of lean and agile concepts and their merits as well. Closed-ended and open-ended questions were posed and sent to purposive sampled registered nationwide project managers. Statistical data outputs were generated using SPSS and subsequently analysed. Findings: It was revealed that by embracing lean concepts relating to preventive measures of work interruptions, among others unambiguous briefing of scope of works and complete contractual documents before construction would reduce the occurrence of variation orders. By adopting agile concepts consisting of flexibility in incorporating a variation order in a schedule of works would achieve optimum use of resources. Research limitations/implications: The survey was conveniently done on registered project managers. Stratified sample including other professional construction industry stakeholders would have generated more insight on the subject matter. Practical implications: The study increases the awareness of theoretical waste reduction concepts that contribute to prevention of the occurrence of variation orders and optimum administration of variation orders. Originality/value: The study explores lean and agile approaches which if embraced will reduce non-value adding activities; hence the reduction of the overall construction delivery costs.