The primary focus of our lean construction approach is to price projects from first principles. This allows us to derive a net cost for the project, exclusive of profits and overheads. This process can be compared with an owner-operator cost model. In anticipation of demonstrating the lean value to our client, we procure contractor prices concurrently while compiling shadow bids during the planning and cost estimation phase. During this process, we run a resource analysis which enables us to analyze the ratio of resource cost contribution. In both mining and infrastructure projects, earthmoving equipment generally contributes the highest cost. The final result of our lean construction estimate is a trade-off between the contractor’s unit rate and our owner-operator cost model, exclusive of profits and markups. Once the trade-off between lean construction and unit rate construction is realised, OEM equipment-, supplier-, and manpower quotations are finalized.
Upon finalisation of equipment hire, supplier, and sub-contractor quotations, we finalise back-to-back agreements with those parties and enter into a commercial agreement with the project owner. This agreement contains the operating methodology, specifications, and open-book project costs. Open-book contracts provide complete transparency on costs, prices, budgets, and materials. This straightforward financial structure creates an environment of total trust between the parties involved. Open-book contracts can lead to cost savings of up to 20%. They also allow for improved design, time management, and sustainable solutions. Furthermore, they enable meticulous monitoring and control of all project costs. Any cost overages or savings are passed on to the client.
During construction, we apply project controls to plan, monitor, and improve the performance of the project. These controls are aimed at reducing waste, increasing value, and enhancing customer satisfaction. They also facilitate the alignment of project objectives, scope, schedule, budget, and quality. Some of the key elements of lean construction project controls are: Last Planner System, Pull Planning, Value Stream Mapping, Target Value Design, and Choosing by Advantages. These elements help to optimize the flow of work, eliminate waste, increase value, manage risks, and make informed decisions. They also foster a culture of continuous learning and improvement, leading to higher productivity and quality.
TacminMadini applies Internet of Things (IoT) technology during lean construction. IoT technology is transforming the construction and mining industries by introducing smart, connected systems that improve performance and safety. In the construction industry, IoT refers to the interconnectivity of wearable devices, machines, people, and sensors sharing information and data within a network. These IoT networks can be augmented and improved by deep learning systems. Systems permitting remote monitoring and management can improve information exchange and control of a project. In the mining industry, IoT is revolutionizing operations by deploying technologies like AI and IoT at mines to monitor and manage equipment performance and maintenance. Overall, the implementation of IoT in these industries leads to cost optimization and improved productivity through the use of sensors on equipment and systems that monitor performance. This results in more cost-efficient ways of running operations and reduces overall operational downtime
