Challenges of Performance Measurement in Lean Construction and the Last Planner System®: A Norwegian Case

Abstract

Question: How and why is performance measured in relation to Lean Construction (LC) and the Last Planner System® (LPS®)? What are key challenges thereof, and how might these be overcome? Purpose: The purpose of this research is to add better understanding of performance measurement in relation to LC and the LPS by addressing key challenges and provide suggestions of how to overcome these. Research Method: The paper draws upon a qualitative case study of a construction company in Norway and its use of performance measurement in relation to the LPS. Findings: The findings demonstrate that performance is measured in various ways and to various extents in the case company. They also demonstrate that a more strategic and systematic approach to performance measurement is needed to cope with the challenges of measuring performance and to reap the benefits of LC and the LPS. This includes sensitivity to social conditions related to performance measurement. Limitations: The paper is based on a single case study in the Norwegian setting, and future studies should seek to build on and refine the findings presented here. Implications: If performance measurement, both in relation to the LPS and more generally to LC is not sensitive to social issues, it might lead to avoidance and neglect at best, and opportunism and abuse at worst. Value for practitioners: The paper addresses key issues and challenges involved in performance measurement in relation to LC and the LPS, and how practitioners might reap the benefits and avoid pitfalls associated with performance measurement. Keywords: Performance measurement, Lean Construction, Last Planner System®, challenges, conditions Paper type: Full paper