Waste in project engineering is a significant challenge, with inefficiencies contributing to as much as 40% of value loss in capital projects. This paper investigates the key drivers behind these inefficiencies and examines how lean management principles can help mitigate them. Drawing from the Toyota Production System, these principles focus on reducing waste while maximising value.

ProjectLink conducted a detailed study involving interviews with stakeholders, anonymous surveys, and project document analysis, supplemented by cross-industry benchmarking in sectors like mining, energy, and consulting. The findings revealed several areas contributing to waste, starting with poor requirements management and scope definition, which often lead to scope creep, rework, and project delays. Late-stage design changes due to weak change management processes were also identified as major inefficiencies.

The research highlighted how a lack of standardisation and inconsistent engineering practices result in further waste, while ineffective project management and decision-making at critical lifecycle stages exacerbate delivery issues. Additional challenges include a focus on meeting stage-gate deliverables at the expense of project optimisation, and the absence of robust assurance and review processes.

By addressing these inefficiencies through lean principles, the study provides a foundation for improving engineering practices and reducing waste in capital projects. Download the full paper to explore the findings in depth.

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