Technical Papers
Dec 26, 2013

Impact of Toyota Way Implementation on Performance of Large Chinese Construction Firms

Publication: Journal of Professional Issues in Engineering Education and Practice
Volume 140, Issue 3

Abstract

Many attempts have been made to thoroughly understand the lean approach and its application in construction. Among these efforts, the Toyota way model is viewed as an appropriate approach that pinpoints various aspects of lean, covering long-term philosophy, process, people and partners, and problem solving. Adopting the Toyota way model, this paper investigates the impact of the implementation of Toyota way on the quality and productivity performance of large construction firms in China. Based on the fieldwork involving a questionnaire survey conducted in China, stepwise regression was used to determine which of the Toyota way–style practices lead to predictors of project quality and productivity. This paper provides insights for improving the implementation of the Toyota way in the construction industry. The results show that different practices may affect specific performance measures. Chinese construction firms should therefore prioritize resources and efforts to implement the critical principles identified to enhance performance. For example, if construction firms in China wish to focus on project quality achievement, the critical factors are as follows: be responsible for products, employees, and society (from the philosophy model); the project manager plans the work with input from other parties; reject defective materials, components, and equipment; the workplace follows 5S principles (from the process model); work with partners to improve project effectiveness; take part in partners’ production process (from the people and partner model); and conduct kaizen activities (from the problem-solving model).

Get full access to this article

View all available purchase options and get full access to this article.

References

Abduh, M., and Roza, H. A. (2006). “Indonesian contractors’ readiness towards lean construction.” Proc., 14th Annual Conf. of the Int. Group for Lean Construction (IGLC-14), IGLC, Santiago, Chile, 543–549.
Agbulos, A., Mohamed, Y., Al-Hussein, M., AbouRizk, S., and Roesch, J. (2006). “Application of lean concepts and simulation analysis to improve efficiency of drainage operations maintenance crews.” J. Constr. Eng. Manage., 291–299.
Akintoye, A. (1995). “Just-in-time application and implementation for building material management.” Construction Management and Economics, 13(2), 105–113.
Al-Sudairi, A. A. (2007). “Evaluating the effect of construction process characteristics to the applicability of lean principles.” Constr. Innov.: Info. Process. Manage., 7(1), 99–121.
Aminpour, S., and Woetzel, J. R. (2006). “Applying lean manufacturing in China.” McKinsey Q., 2(I), 106.
Arbulu, R., Ballard, G., and Harper, N. (2003). “Kanban in construction.” Proc., 11th Annual Conf. of the Int. Group for Lean Construction (IGLC-11), IGLC, Virginia Tech, Blacksburg, VA.
Ballard, G., and Howell, G. (1998). “What kind of production is construction.” Proc., 6th Annual Conf. of the Int. Group for Lean Construction (IGLC-6), Guarujá, Brazil.
Bayo-Moriones, A., Bello-Pintado, A., and de Cerio, J. M. (2010). “5S use in manufacturing plants: contextual factors and impact on operating performance.” Int. J. Qual. Relia. Manage., 27(2), 217–230.
Black, T. R. (1999). Doing quantitative research in the social sciences: An integrated approach to research design, measurement and statistics, Sage Publications, Beverly Hills, CA.
Blismas, N., Pasquire, C., and Gibb, A. (2006). “Benefit evaluation for off-site production in construction.” Constr. Manage. Econ., 24(2), 121–130.
Blythe, B. J., and Tripodi, T. (1989). Measurement in direct social work practice, Sage, Newbury Park, CA.
Bryde, D. (2008). “Perceptions of the impact of project sponsorship practices on project success.” Int. J. Proj. Manage., 26(8), 800–809.
Buller, P. F., and Bell, C. H., Jr. (1986). “Effects of team building and goal setting on productivity: A field experiment.” Acad. Manage. J., 29(2), 305–328.
Burke, L., and Logsdon, J. M. (1996). “How corporate social responsibility pays off.” Long Range Plann., 29(4), 495–502.
Chan, A. P. C., Chan, D. W. M., Chiang, Y. H., Tang, B. S., Chan, E. H. W., and Ho, K. S. K. (2004). “Exploring critical success factors for partnering in construction projects.” J. Constr. Eng. Manage., 188–198.
Chen, J. J. (1998). “The characteristics and current status of China’s construction industry.” Constr. Manage. Econ., 16(6), 711–719.
Clarke, L., and Wall, C. (2000). “Craft versus industry: The division of labour in European housing construction.” Constr. Manage. Econ., 18(6), 689–698.
Dainty, A. R. J., Bryman, A., and Price, A. D. F. (2002). “Empowerment within the UK construction sector.” Leadersh. Org. Develop. J., 23(6), 333–342.
Day, D. V. (2000). “Leadership development: A review in context.” Leadersh. Q., 11(4), 581–613.
Demming, W. E. (1986). Out of the crisis, MIT Center for Advanced Engineering Study, Cambridge, MA.
Diekmann, J. E., Krewedl, M., Balonick, J., Stewart, T., and Won, S. (2004). “Application of lean manufacturing principles to construction.” CII Rep., Project team 191, Univ. of Texas, Austin, TX.
Doloi, H., Sawhney, A., Iyer, K. C., and Rentala, S. (2012). “Analysing factors affecting delays in Indian construction projects.” Int. J. Proj. Manage., 30(4), 479–489.
Edum-Fotwe, F. T., and McCaffer, R. (2000). “Developing project management competency: Perspectives from the construction industry.” Int. J. Proj. Manage., 18(2), 111–124.
Egan, J. (1998). “Rethinking construction.” The Rep. of the Construction Task Force, Dept. of Environment, Transport and Regions, London.
Fang, D. P., Li, M. G., Fong, P. S. W., and Shen, L. Y. (2004). “Risks in Chinese construction market—Contractors’ perspective.” J. Constr. Eng. Manage., 853–861.
Fellows, R., and Liu, A. M. M. (2008). Research methods for construction, Blackwell, Oxford, UK.
Fields, A. (2000). Discovering statistics using SPSS for windows, Sage, London.
Formoso, C. T., Santos, A. D., and Powell, J. A. (2002). “An exploratory study on the applicability of process transparency in construction sites.” J. Constr. Res., 3(1), 35–54.
Gann, D., and Senker, P. (1998). “Construction skills training for the next millennium.” Constr. Manage. Econ., 16(5), 569–580.
Gao, S., and Low, S. P. (2012). “The adoption of Toyota way principles in large Chinese construction firms.” J. Tech. Manage. China, 7(3), 291–316.
Gao, S., and Low, S. P. (2013). “The Toyota way problem-solving model: Lessons for large Chinese construction firms.” Int. J. Constr. Manage., 1(1), 79–103.
Gapp, R., Fisher, R., and Kobayashi, K. (2008). “Implementing 5S within a Japanese context: An integrated management system.” Management Decision, 46(4), 565–579.
Gliner, J. A., and Morgan, G. A. (2009). Research methods in applied settings: An integrated approach to design and analysis, Taylor & Francis, Mahwah, NJ.
Green, S. D. (2002). “The human resource management implications of lean construction: Critical perspectives and conceptual chasms.” J. Constr. Res., 3(1), 147–165.
Green, S. D., Kao, C. C., and Larsen, G. D. (2009). “Contextualist research: Iterating between methods while following an empirically grounded approach.” J. Constr. Eng. Manage., 117–126.
Haas, C. T., Rodriguez, A. M., Glover, R., and Goodrum, P. M. (2001). “Implementing a multiskilled workforce.” Constr. Manage. Econ., 19(6), 633–641.
Hadavi, A., and Krizek, R. J. (1994). “Difficulties with implementation of goal setting for construction.” J. Manage. Eng., 48–54.
Holzinger, A. (2011). Successful management of research and development, Books on Demand, Norderstedt.
Housing, and Construction Bureau of Shenzhen Municipality (HCBSZM). (2013). “Shenzhen builders probed for dangerous sand substitutions.” (in Chinese), 〈http://www.szjs.gov.cn/〉 (July 2, 2012).
Imai, M. (1986). Kaizen (Ky’zen)—the key to Japan’s competitive success, McGraw-Hill, New York.
Jarkas, A. M., and Bitar, C. G. (2012). “Factors affecting construction labor productivity in Kuwait.” J. Constr. Eng. Manage., 811–820.
Jayaram, J., Das, A., and Nicolae, M. (2010). “Looking beyond the obvious: Unraveling the Toyota production system.” Int. J. Prod. Econ., 128(1), 280–291.
Karim, K., Marosszeky, M., and Davis, S. (2006). “Managing subcontractor supply chain for quality in construction.” Eng. Constr. Arch. Manage., 13(1), 27–42.
Khalfan, M., Mcdermott, P., Oyegoke, A., Dickinson, M., Li, X., and Neilson, D. (2008). “Application of kanban in the UK construction industry by public sector clients.” Proc., 16th Annual Conf. of the Int. Group for Lean Construction (IGLC-16), IGLC, Salford, U.K.
Koskela, L. (1992). “Application of the new production philosophy to construction.” Technical Rep. No. 72, Stanford Univ. Center for Integrated Facility Engineering, Dept. of Civil Engineering, Stanford, CA.
Koskela, L. (2000). An exploration towards a production theory and its application to construction, VTT Technical Research Centre of Finland, Espoo, Finland.
Kung, D., Alex, D. P., Al-Hussein, M., and Fernando, S. (2008). “Application of lean thinking to improve the productivity of water and sewer service installations.” Canadian J. Civ. Eng., 35(4), 418–430.
Li, Y. Y., Chen, P. H., Chew, D. A. S., Teo, C. C., and Ding, R. G. (2011). “Critical project management factors of AEC firms for delivering green building projects in Singapore.” J. Constr. Eng. Manage., 1153–1163.
Liker, J., and Ballé, M. (2013). “Lean managers must be teachers.” J. Enterprise Transform., 3(1), 16–32.
Liker, J. K. (2004). The Toyota way: 14 management principles from the world’s greatest manufacturer, McGraw-Hill, New York.
Liker, J. K., and Meier, D. (2006). The Toyota way fieldbook: A practical guide for implementing Toyota’s 4Ps, McGraw-Hill, New York.
Ling, F. Y. Y., Low, S. P., Wang, S. Q., and Lim, H. H. (2009). “Key project management practices affecting Singaporean firms’ project performance in China.” Int. J. Proj. Manage., 27(1), 59–71.
Ling, Y. Y. (2002). “Model for predicting performance of architects and engineers.” J. Constr. Eng. Manage., 446–455.
Locke, E. A., and Latham, G. P. (2002). “Building a practically useful theory of goal setting and task motivation: A 35-year odyssey.” Am. Psychol., 57(9), 705–717.
Love, P. E. D., Edwards, D. J., Watson, H., and Davis, P. (2010). “Rework in civil infrastructure projects: Determination of cost predictors.” J. Constr. Eng. Manage., 275–282.
Love, P. E. D., Li, H., Irani, Z., and Faniran, O. (2000). “Total quality management and the learning organization: A dialogue for change in construction.” Constr. Manage. Econ., 18(3), 321–331.
Low, S. P., and Ang, G. K. (2003). “Integrating JIT and 5-S concepts for construction site management: A case study.” Int. J. Constr. Manage., 3(1), 31–47.
Low, S. P., and Chan, Y. M. (1997). Managing productivity in construction: JIT operations and measurements, Ashgate, Brookfield, VT.
Low, S. P., and Choong, J. C. (2001). “Just-in-time management of precast concrete components.” J. Constr. Eng. Manage., 494–501.
Low, S. P., and Gao, S. (2011). “The application of the just-in-time philosophy in the Chinese construction industry.” J. Constr. Develop. Countries, 16(1), 91–111.
Low, S. P., and Mok, S. H. (1999). “The application of JIT philosophy to construction: A case study in site layout.” Constr. Manage. Econ., 17(5), 657–668.
Low, S. P., and Teo, J. A. (2004). “Implementing total quality management in construction firms.” J. Manage. Eng., 8–15.
Michela, J. L., Noori, H., and Jha, S. (1996). “The dynamics of continuous improvement.” Int. J. Qual. Sci., 1(1), 19–47.
Miller, C. J. M., Packham, G. A., and Brychan, C. T. (2002). “Harmonization between main contractors and subcontractors: A prerequisite for lean construction?” J. Constr. Res., 3(1), 67–82.
Orr, C. (2005). “Lean leadership in construction.” Proc., 13th Annual Conf. of the Int. Group for Lean Construction (IGLC-13), Univ. of Sydney, Australia.
Paez, O., Dewees, J., Genaidy, A., Tuncel, S., Karwowski, W., and Zurada, J. (2004). “The lean manufacturing enterprise: An emerging sociotechnological system integration.” Hum. Factors Ergon. Manuf. Serv. Ind., 14(3), 285–306.
Park, S. H., and Luo, Y. D. (2001). “Guanxi and organizational dynamics: Organizational networking in Chinese firms.” Strategic Manage. J., 22(5), 455–477.
Polat, G., and Ballard, G. (2004). “Waste in Turkish construction: Need for lean construction techniques.” Proc., 12th Annual Conf. of the Int. Group for Lean Construction (IGLC-12), IGLC, Copenhagen, Denmark.
Price, A. D. F., Bryman, A., and Dainty, A. R. J. (2004). “Empowerment as a strategy for improving construction performance.” Leadersh. Manage. Eng., 27–37.
Saarinen, A. W., Jr., and Hobel, M. A. (1990). “Setting and meeting requirements for quality.” J. Manage. Eng., 177–185.
Santos, A., Formoso, C. T., and Tookey, J. E. (2002). “Expanding the meaning of standardisation within construction processes.” The TQM Magazine, 14(1), 25–33.
Senaratne, S., and Wijesiri, D. (2008). “Lean construction as a strategic option: Testing its suitability and acceptability in Sri Lanka.” Lean Constr. J., 4(1), 34–48.
Shen, Z., Jensen, W., Berryman, C., and Zhu, Y. (2011). “Comparative study of activity-based construction labor productivity in the United States and China.” J. Manage. Eng., 116–124.
Sowards, D. (2007). “Lean construction: New tools and old combine to reduce waste.” Quality Digest, 27(11), 32–36.
Spear, S., and Bowen, H. K. (1999). “Decoding the DNA of the Toyota production system.” Harvard Bus. Rev., 77(5), 96–106.
Sproull, B. (2001). Process problem solving: A guide for maintenance and operations teams, Productivity Press, New York.
Tang, W. Z., Duffield, C. F., and Young, D. M. (2006). “Partnering mechanism in construction: An empirical study on the Chinese construction industry.” J. Constr. Eng. Manage., 217–229.
Tennant, S., Langford, D., and Murray, M. (2011). “Construction site management team working: A serendipitous event.” J. Manage. Eng., 220–228.
Tezel, A., and Nielsen, Y. (2013). “Lean construction conformance among construction contractors in Turkey.” J. Manage. Eng., 236–250.
Tezel, B. A., Koskela, L., and Tzortzopoulos, P. (2010). “Visual management in construction: Study report on Brazilian cases.” Univ. of Salford, Salford, U.K.
Thomas, H. R., Horman, M. J., Minchin, R. E., Jr., and Chen, D. (2003). “Improving labor flow reliability for better productivity as lean construction principle.” J. Constr. Eng. Manage., 251–261.
Towill, D. R. (2010). “Industrial engineering the Toyota production system.” J. Manage. His., 16(3), 327–345.
van Driel, H., and Dolfsma, W. (2009). “Path dependence, initial conditions, and routines in organizations: The Toyota production system re-examined.” J. Org. Change Manage., 22(1), 49–72.
Vavra, T. G. (1997). Improving your measurement of customer satisfaction: A guide to creating, conducting, analyzing, and reporting customer satisfaction measurement programs, ASQ Quality Press, Milwaukee.
Whitelaw, R. R. P. (1969). Marketing and economics: An introduction to the use of economic indicators, Pergamon Press, Oxford.
Winston, W. L., and Albright, S. C. (2009). Practical management science, South-Western Cengage Learning, Mason, OH.
Womack, J. P., Jones, D. T., and Roos, D. (1990). The machine that changed the world, Rawson Associates, New York.
Xu, T. J., Tiong, R. L., Chew, D. A., and Smith, N. J. (2005). “Development model for competitive construction industry in the People’s Republic of China.” J. Constr. Eng. Manage., 844–853.
Yang, C. C., Yeh, T. M., and Yang, K. J. (2012). “The implementation of technical practices and human factors of the toyota production system in different industries.” Hum. Factors Ergon. Manuf. Serv. Ind., 22(6), 541–555.
Yu, H. T., Al-Hussein, M., Al-Jibouri, S., and Telyas, A. (2013). “Lean transformation in a modular building company: A case for implementation.” J. Manage. Eng., 103–111.
Zeng, S. X., Tam, C. M., Deng, Z. M., and Wang, H. C. (2003). “The rise and fall of total quality management in the Chinese construction industry.” Arch. Sci. Rev., 46(2), 105–113.
Zhao, X. D., Yeung, A. C. L., and Lee, T. S. (2004). “Quality management and organizational context in selected service industries of China.” J. Oper. Manage., 22(6), 575–587.

Information & Authors

Information

Published In

Go to Journal of Professional Issues in Engineering Education and Practice
Journal of Professional Issues in Engineering Education and Practice
Volume 140Issue 3July 2014

History

Received: May 2, 2013
Accepted: Nov 4, 2013
Published online: Dec 26, 2013
Discussion open until: May 26, 2014
Published in print: Jul 1, 2014

Permissions

Request permissions for this article.

Authors

Affiliations

Ph.D. Candidate, Dept. of Building, National Univ. of Singapore, 4 Architecture Dr., Singapore 117566 (corresponding author). E-mail: [email protected]; [email protected]
Sui Pheng Low [email protected]
Professor, Dept. of Building, National Univ. of Singapore, 4 Architecture Dr., Singapore 117566. E-mail: [email protected]

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share