Uncertainty management

Abstract

The chapter 1 proposes a process for integrating uncertainty management with the Last Planner System (LPS). The topic aligns closely with the goal of extending the LPS to overall project planning, which is described in the Last Planner chapter. How to identify and manage risks and opportunities is a key part of deciding if and how to deliver a project. It should be noted that LPS originated as a method for production planning and control, not for overall project management. Hence, LPS has not previously been devoted to overall project performance. There are two fundamental challenges in developing and executing a construction project: making decisions based on scant information and controlling processes characterised by variability. Handling both challenges is called uncertainty management and is key to success in construction management. Uncertainty management helps utilise opportunities and avoid risks. As of today, uncertainty management is not properly integrated into Lean Construction. This chapter argues that such an integration has something to add to Lean Construction and discusses how this integration could be achieved.