A theoretical review of lean implementation within construction SMEs

Abstract

Small- and medium-sized enterprises (SMEs) are considered the backbone of many economies. SMEs constitute over 90% of global enterprises and account for about 60% of employment. However, SMEs still suffer from many problems, such as low product quality and working efficiency, budget overruns, and substantial construction waste. Lean construction has increasingly been implemented as a potential solution for organisations to deal with waste of all types. The aim of this article is to suggest lean tools that can be implemented within the construction SME set-up. A systematic review of empirical and theoretical studies obtained from ResearchGate, International Group for Lean Construction (IGLC) conference proceedings, ScienceDirect (Elsevier), Emerald Insight, Taylor & Francis Group, Google Scholar, and other Internet sources was conducted in this study. This paper was based on four hypotheses, which are related to construction SMEs’ capacity to implement lean as efficiently as large enterprises do. The study found that lean was applicable in construction SMEs, but that it has to be contextualised within the peculiar characteristics of the SME, such as its size, financial capabilities, organisational culture, and human resource capacity. The paper concluded by recommending lean tools such as 5S, A3 problem solving, and 5 Whys, which require less monetary investment to be implemented by construction SMEs. A change of mindset is needed for lean implementation, as there is still a low rate of lean adoption among SMEs.