Applying lean thinking in commercial management

Pasquire, C; Ballard, G; Zimina, D and Pasquire, C L (2011) Applying lean thinking in commercial management. Journal of Financial Management of Property and Construction, 16(1), pp. 64-72. ISSN 1366-4387

Abstract

Purpose The purpose of this paper is to develop two hypotheses explaining the role of commercial management in the lean business model: lean construction is a viable choice of commercial strategy; and lean commercial management is an integral part of lean construction system subordinate to the project delivery. This is completed as a part of conceptualisation of the lean commercial management discipline in construction on the abstract level and followed by deriving its main principles. Design/methodology/approach The research is based on the direct observation of the companies pursuing lean strategy in construction as well as of those following non-lean business models, review of case studies and literature. Findings Traditional commercial arrangements do not comply with the lean construction requirements and may hamper the exploration of its full potential. Lean commercial management differs in the way that its primary role is to support the production process thus it is subordinated to it. Research limitations/implications This research would benefit from links with the existent field of social and economic studies where deeper reasoning to substantiate the theory might be found. Experiments with lean companies in the construction sector are also necessary for theory validation. Practical implications The approach offered in this paper vectors the way of dealing with the commercial decisions within lean enterprise. This potentially can further enhance benefits from lean construction. Originality/value The paper builds upon the related research and papers, further advancing the topic of lean construction.

Item Type: Article
Uncontrolled Keywords: management strategy
Index terms: methodology, direct observation, lean construction, construction sector, reasoning, management strategy, case study, validation, exploration, production process, experiment, business model, project delivery, strategy
Subjects: cognitive psychology, environmental resource management, industry analysis, research methods, manufacturing engineering, building construction, data collection methods, project delivery, management, business, professional development
Topics: Engineering Principles, Business Strategy, Procurement, Information Management, Research Practice, Site Management, Sustainability
Descriptive scope: 4 PCTE

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here