A THEORETICAL REVIEW OF LEAN IMPLEMENTATION WITHIN CONSTRUCTION SMEs

Abstract

Small and Medium Enterprises (SMEs) are considered the backbone of many economies. SMEs constitute over ninety percent of global enterprises and account for about sixty percent of employment. However, SMEs still suffer from many problems such as low product quality and working efficiency, budget overruns, significant construction waste, etc. Lean construction has increasingly been implemented as a potential solution for organizations to deal with waste of all types. Limited studies exist on Lean implementation in Construction SMEs. This paper sought to suggest Lean tools which can be implemented within the Construction SME setup. A systematic review of empirical and theoretical studies published from Research Gate, International Group of Lean Construction conference (IGLC), Science Direct (Elsevier), Emerald Insight, Taylor and Francis, Google Scholar and other internet sources were considered in this study. This paper was based on four hypotheses, which are related to the construction SMEs capacity to implement lean as efficiently as large enterprises. The review found that Lean principles could be applicable in Construction SMEs, but has to be contextualized within their peculiar characteristics such as their Size, Financial Capabilities, Organisational Culture and Human Resource Capacities. The paper concludes by suggesting Lean tools such as 5S, A3’s, 5 Why’s etc., that require less monetary investments to be implemented by construction SMEs. A change of mind-set is needed for Lean implementation as there is still a lower rate of adoption amongst SMEs.