Excellence in construction: the operational transformation that drove results

The construction sector is currently facing significant challenges, including labor shortages, cost and deadline pressures, and high project complexity. The lack of standardization and fragmentation across the value chain continue to limit productivity and operational predictability.

In this context, it becomes essential to adopt more efficient and structured approaches, such as industrialization, prefabrication, and Lean methodologies, to increase competitiveness and ensure sustainable growth.

Accelerated growth in a highly demanding context

The company in question has its origins in the 19th century, having started its activity in the construction of chimneys for industrial units in the textile sector. In the 1990s, the fourth generation redefined the company’s positioning, focusing on the design and execution of industrial units.

With over 200 industrial, logistics, and commercial projects under its belt, the company offers integrated turnkey solutions that meet the operational, cost, and timeline requirements of both domestic and international clients.

The company operates on the principle of creating integrated solutions, aligning all project phases to generate value for its stakeholders. This approach is particularly relevant in a context where project complexity requires greater coordination, efficiency, and execution capability.

In recent years, the company has recorded continuous growth, even during adverse periods for the sector. However, this growth did not translate into the desired operational results, highlighting the need for a structural transformation.

From growth to the need for operational transformation

The company’s accelerated growth, combined with an increasingly demanding market context, exposed structural limitations that constrained operational efficiency and execution capability.

Before starting the transformation, a detailed mapping of the current state was carried out using visual tools and involving teams in the field. This diagnosis enabled the identification of inefficiencies, waste, and coordination gaps throughout the value chain.

Figure 1 – Mapping of the current state

Misalignment between strategy and execution

The lack of a structured planning and monitoring model made it difficult to translate strategic objectives into specific on-site actions. The lack of visibility and control mechanisms compromised the ability to anticipate and make decisions.

High lead times and lack of operational flow

The total project lead time, which reached approximately 17 months, reflected the existence of multiple inefficiencies across the value chain. Execution was marked by interruptions, constant multitasking, and a lack of continuous flow, resulting in delays and loss of productivity.

Inefficiencies in construction management and on-site operations

Site organization showed high levels of waste, with excessive movement, duplicated or damaged materials, and poorly structured assembly and disassembly processes. This lack of standardization directly impacted on costs and operational efficiency.

Lack of standardization and frequent rework

The absence of construction standards and defined processes led to execution variability, recurring errors, and rework, consuming resources and compromising project timelines.

Difficulties in coordination and communication among stakeholders

The multiplicity of stakeholders and the lack of structured communication routines made it difficult to coordinate activities, increasing the risk of failures, deviations, and inefficiencies throughout the project.

Pressure on resources in a context of labor shortages

The heavy reliance on labor, coupled with limited availability, placed additional pressure on operations, highlighting the need for more efficient, standardized, and less resource-intensive solutions.

From strategy to execution: a structural transformation

To address the identified challenges, a transformation program was developed based on Lean and kaizen principles, focusing on creating flow, standardizing processes, and aligning across all levels of the organization.

“This process forced us to reflect across the organization, seeking synergies in all areas of the company.” – Project Manager

Aligning strategy with execution through visual management

To overcome the misalignment between strategy and execution, a structured planning and monitoring model was implemented. The creation of the obeya room, or mission control room, on construction sites enabled the centralization of critical information, increased transparency, and ensured alignment among teams, facilitating decision-making and tracking project progress.

Figure 2 – Obeya room

Improving planning and creating flow with Last Planner

To address high lead times and the lack of operational flow, the Last Planner was implemented, supported by Pull Planning practices, involving teams in defining and committing to the plan. This change made it possible to increase planning reliability, improve coordination among stakeholders, and reduce interruptions and deviations in activity execution.

Reorganizing sites to increase operational efficiency

To resolve inefficiencies in construction and site management, a deep reorganization of these spaces was carried out, supported by 5S practices that focused on waste elimination, reduction in movement, and improvement of operational conditions. This transformation has made it possible to streamline processes, improve organization, and significantly reduce the costs associated with assembly and disassembly.

Figure 3 – Tool organization board with 5S implementation

Standardizing processes to reduce variability and rework

To address the lack of standardization and frequent rework, more than 120 construction standards were defined and applied across the organization. This approach enabled the reduction of execution variability, the minimization of errors, and greater consistency in results.

“With heterogeneous solutions and a high dependence on labor, it was essential to adopt new ways of working. The path was standardization across the entire chain, with the definition of more than 120 standards.” – Project Manager

Optimizing the supply chain and reducing failures

In terms of the supply chain, improvements were implemented in purchasing and material planning processes, reducing purchasing lead times and increasing supply reliability. This intervention helped reduce failures and improve coordination between stakeholders.

Industrializing processes to reduce labor dependence

To address labor shortages and increase productivity, the company invested in industrialization, with greater use of prefabricated solutions and innovation focused on achieving results. This change reduced dependence on labor-intensive on-site work and increased overall efficiency.

Creating a continuous improvement culture with Daily KAIZEN™

Finally, implementing Daily KAIZEN™ made it possible to structure continuous improvement into teams’ daily routines through tools such as the PDCA cycle and A3 for problem analysis and resolution. This approach brought greater rigor and consistency to how deviations are handled, promoting a culture of accountability, learning, and continuous improvement on-site.

Figure 4 – Daily problem management using the PDCA cycle

More control, more efficiency, more results

The operational transformation enabled the organization to significantly improve its performance, not only in financial results but also in how it manages, executes, and develops its projects.

 Quantitative results:

• +80% revenue growth, reflecting the ability to scale operations.
• +190% increase in profitability, demonstrating greater execution efficiency.
• 45% On Time Delivery, reflecting a significant improvement in schedule reliability.
• Average delay was reduced to 3 days, highlighting greater operational control.
• -8% in project lead time, through flow creation and inefficiency elimination.
• -20% in purchasing lead time, increasing supply chain efficiency.
• -55% in site assembly and disassembly costs, directly impacting operating costs.
•  More than 700 employees involved, including internal and external teams.

Qualitative results

• Greater alignment between strategy and execution, with better project visibility and control.
• Significant improvement in communication and coordination among teams and stakeholders.
• Reduction in rework and increased execution consistency through process standardization.
• Increased resource availability for value-added activities.
• Greater reliability in planning and execution, with reduced interruptions and deviations.
• Development of a continuous improvement culture, with more engaged and proactive teams.
• Adoption of more efficient and sustainable practices, with reduced dependence on labor-intensive work.

A transformation that goes beyond growth

The company’s journey demonstrates that growth alone does not guarantee results. In a context of greater demand and complexity, execution capability becomes the true differentiating factor.

By aligning strategy, processes, and operations, the company was able to improve performance, reduce inefficiencies, and create a solid foundation to support growth. More than just implementing tools, the organization transformed the way it works on a day-to-day basis, ensuring that practices such as Daily KAIZEN™, visual management, and collaborative planning became part of the teams’ routine.

This journey reflects one of the fundamental paradoxes of a true continuous improvement culture – practice over tools– showing that it is not systems that transform organizations, but rather what is consistently done on site, and that growth alone is not enough; one must know how to execute.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.