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

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).