Lima Study: LPS Optimizes Subcontractor Management in Energy Projects

In the bustling city of Lima, Peru, a groundbreaking study led by Xavier Brioso of the Pontifical Catholic University of Peru is set to revolutionize how subcontractors are managed in the construction industry, with significant implications for the energy sector. The research, published in ‘Annals of Construction’, focuses on the application of the Last Planner System (LPS) to optimize the management of subcontractors in repetitive housing projects, particularly in the installation of natural gas facilities.

The construction industry is no stranger to challenges, especially when it comes to managing subcontractors in fixed-price, short-term contracts. Delays and cost overruns are common, often stemming from poor deliverables and non-conformances. Brioso’s study addresses these issues head-on, proposing a method that adapts the LPS for the management of natural gas facilities in highly repetitive housing projects. The LPS, a collaborative planning system, has already proven its worth in generating value and optimizing resources. However, its application in subcontractor management, particularly in the energy sector, has been relatively unexplored until now.

The study’s methodology was applied to a massive multi-family low-cost housing project in Lima, where Building Information Modeling (BIM) technology was used to model the project. By identifying the most frequent root causes of non-conformances in the initial buildings, the research team was able to collaboratively plan the subsequent buildings more effectively. This approach allowed for the determination of optimal sectioning, Takt Time Planning, subcontractor restrictions, weekly and daily planning.

Brioso explains, “The key to our success was the collaborative nature of the LPS. By involving all stakeholders in the planning process, we were able to identify and address potential issues before they became problems. This not only improved the efficiency of the subcontractors but also enhanced the overall quality of the project.”

The results of this study are promising. By adapting the LPS for subcontractor management, the research team was able to significantly reduce non-conformances, delays, and cost overruns. This has substantial commercial implications for the energy sector, where timely and efficient installation of gas facilities is crucial. The lessons learned from this implementation can be adapted to other types of subcontracts, paving the way for more efficient and collaborative construction practices.

As the construction industry continues to evolve, the integration of collaborative planning systems like the LPS could become a game-changer. By fostering a more collaborative and transparent approach to subcontractor management, the industry can expect to see improved project outcomes, reduced costs, and enhanced quality. This research, published in the ‘Annals of Construction’, sets a precedent for future developments in the field, encouraging further exploration into the potential of the LPS and other collaborative systems.

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