Balancing Speed and Stability in Construction: Organizational Design 5S
- Ari Zingillioglu
- 4 days ago
- 8 min read
Updated: 3 days ago
#ConstructionManagement #LeanConstruction #PMI #ProjectManagement #5S #OperationalExcellence #PMP #ConstructionIndustry #LeanSixSigma #Construction #Engineering
In the construction world, how a company is organized basically comes down to one question: Who calls the shots—the person running the job site or the department heads back at the main office?
In a Projectized setup, the Project Manager is the captain. The specific construction site acts like its own temporary company, where the PM has full control over the crew, equipment, and budget to get that specific building finished.
On the other hand, a Functional organization is built around specialties, like PMO (Project Management Office), Business Development, IT & Systems Support or Financial departments. In this version, the power stays with the department managers to keep technical standards high, and the Project Manager acts more like a coordinator who has to "borrow" their team members to get the work done.
This dichotomy represents two distinct approaches to managing the complex resources required to build: the Projectized model treats each construction site as an autonomous business unit, granting the Project Manager total authority to mobilize equipment and personnel for rapid, site-specific execution. In contrast, the Functional model organizes the firm by specialized disciplines.
Most modern companies fall somewhere in the middle, which PMI calls a Matrix organization.
*Weak Matrix: Acts more like a Functional org (PM is weak).
*Strong Matrix: Acts more like a Projectized org (PM is strong).
*Balanced Matrix: Power is shared roughly equally between the PM and the Functional Manager.
5S methodology is one of the most practical and mindset-changing tools in Lean Construction. 5S is not just theory—it's a culture, a discipline, and a lens through which we view efficiency, clarity, and responsibility in construction environments. Lean 5S is not just something you learn — it is something you become.
5S is not about housekeeping. It is not just about cleaning up the job site at the end of the day. It is a mindset and a stage-by-stage process.
It connects directly to the PMI (Project Management Institute) methodology, and blends into Organizational models construction affiliated companies utilize. If Project Management provides the framework (the skeleton), Lean 5S provides the hygiene and discipline (the immune system) that keeps the project healthy. There are five Japanese terms that define this system. It represents a cycle of improvement that moves from chaos to consistency. Here are the five pillars: Seiri (Sort), Setion (Set in Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).
1. Sort (Seiri)
Seiri (Sort) focuses on decluttering. The team goes through the workspace and separates necessary items from unnecessary ones. Anything that isn’t needed for the immediate work—like broken tools, old scraps, or outdated files—is removed or "red-tagged" for disposal. The idea is to clear the distractions so only the essential tools remain.
"When in doubt, throw it out."
The Concept: Separate the necessary items from the unnecessary ones.
The Action: Go through your workspace and red-tag items that are broken, obsolete, or never used. Remove them from the area.
The Goal: To remove clutter and free up floor space so you can see what you actually have.
2. Set in Order (Seiton)
Seiton (Set in Order) is about arranging the remaining items for maximum efficiency. The motto here is "a place for everything, and everything in its place." Workers organize tools and materials logically, often using shadow boards, labels, or floor tape, so that anyone can find what they need in seconds without having to search.
"A place for everything, and everything in its place."
The Concept: Arrange the remaining necessary items so they are easy to find and use.
The Action: Use labels, shadow boards (outlines of tools), and floor tape to mark exactly where items belong. Place frequently used tools closer to the user to minimize movement.
The Goal: To reduce the time wasted searching for tools and to improve workflow efficiency.
3. Shine (Seiso)
In construction, a clean site is a safe site. This step is about daily cleaning, but it is also a way to check your equipment. When an operator washes the mud off an excavator, they aren't just making it look nice; they are looking for hydraulic leaks or loose tracks. When a laborer sweeps the floor at the end of the day, they are removing trip hazards (like loose nails or cords) to make sure the site is safe for the morning crew.
"Cleaning is inspection."
The Concept: Clean the workspace and equipment to ensure everything is in top working order.
The Action: Sweep, dust, and wipe down surfaces daily. While cleaning, look for leaks, loose bolts, or vibration in machinery.
The Goal: To prevent machinery failure and accidents by catching problems early during the cleaning process.
4. Standardize (Seiketsu)
Seiketsu (Standardize) turns the first three steps into a consistent process. This stage involves creating schedules, checklists, and visual guides to ensure everyone knows exactly how to maintain the workspace. It moves the organization from a one-time cleanup event to a set of daily rules that apply to every shift and every department. For example, maybe every extension cord on site is color-coded by length, or every job site in the company uses the exact same safety checklist at 7:00 AM. This way, if a worker moves from a site in the city to a site in the suburbs, they already know exactly where the first aid kit is and how the tools are stored.
"Make up the rules."
The Concept: Establish guidelines to ensure the first three "S's" are maintained.
The Action: Create checklists, schedules, and standard operating procedures (SOPs). Use color coding to make it obvious when a standard isn't being met.
The Goal: To prevent the workplace from slipping back into its old, cluttered habits.
5. Sustain (Shitsuke)
Shitsuke (Sustain) is often the hardest part: sticking to the routine. It means making sure the site doesn't slide back into a mess after a few weeks of hard work. It involves "toolbox talks" to remind the crew about organization and holding people accountable if they leave trash lying around. It builds a culture where even the newest apprentice knows that cleaning up and putting tools back is just part of the job, not an extra chore.
"Stick to the rules."
The Concept: Make 5S a habit and a permanent part of the company culture.
The Action: Perform regular audits, train new employees on the standards immediately, and reward teams for keeping their areas clean and organized.
The Goal: To build self-discipline and ensure continuous improvement over the long term.
Within high-stakes construction, the Projectized Organization acts as a catalyst for Seiri (Sort) and Seiton (Set in Order). By granting the Project Manager absolute control over Resource Availability—a core PMI tenet—this structure allows for a precise application of Seiri. The PM filters out "Muda" (waste) from shared services, narrowing the focus strictly to the Project Scope and the necessary Deliverables. Following this sorting process, the PM utilizes Seiton to refine Site Logistics. Through direct control of the budget and team, the layout is configured to minimize friction in the Value Stream, ensuring a Workflow that is strictly tailored to the project's timeline and distinct needs.
Conversely, the Functional Organization supplies the stability needed to support Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). Because Functional Managers maintain control over assets, they effectively execute Seiso via centralized maintenance strategies that ensure fleet readiness. The functional hierarchy also systematizes Seiketsu through the creation of Organizational Process Assets (OPAs), standardizing Quality Assurance and Standard Operating Procedures (SOPs) regardless of variable site conditions. Additionally, the centralized nature of the firm guarantees Shitsuke; by housing culture and training within the department, the principles of Continuous Improvement (Kaizen) are ingrained in the staff, surviving beyond the lifecycle of any single project.
By mapping Seiri and Seiton to the Projectized Organization, and Seiso, Seiketsu, and Shitsuke to the Functional Organization, we create a dichotomy between "Immediate Execution/Change" and "Long-term Stability/Operations."
Here is the breakdown of this conceptual correlation:
Part 1: The Projectized Organization (The "Setup & Sprint" Phase)
Mapped Stages: Seiri (Sort) & Seiton (Set in Order)
In a Projectized Organization, the focus is on a specific, temporary endeavor with a hard deadline. The Project Manager has high authority to move fast and break down barriers. This aligns perfectly with the first two stages of 5S, which are about aggressive action and setting the stage for work.
1. Seiri (Sort)
→→
Project Scope & Resource Allocation
The Connection: Just as Seiri requires separating necessary items from unnecessary ones, a Project Manager in a Projectized structure must ruthlessly define scope. They "Sort" resources, budget, and tasks.
In Practice: The PM decides exactly who is on the team and what equipment is needed for this specific project. Anything that does not contribute to the project goal is "Red Tagged" (removed from scope). There is no "fluff" or "business as usual" work here—only what is needed to deliver.
2. Seiton (Set in Order)
→→
Project Workflow & Co-location
The Connection: Seiton is about arranging tools for maximum efficiency and speed. In a Projectized structure, the PM has the authority to arrange the team physically and operationally to get the job done fast.
In Practice: This is the equivalent of the "Bullpen" concept. The PM arranges the team (Set in Order) so communication is instant. They set up the workflow (Kanban boards, War Rooms) specifically for that project's speed. It is about organizing for immediate execution.
The Projectized side represents the Dynamic nature of 5S—clearing the path and setting up for a sprint.
Part 2: The Functional Organization (The "sustain & Stabilize" Phase)
Mapped Stages: Seiso (Shine), Seiketsu (Standardize), & Shitsuke (Sustain)
In a Functional Organization, the focus is on operational excellence, department health, and longevity. The Functional Manager focuses on consistency and keeping the "machine" running year after year. This aligns with the final three stages, which are about maintenance and culture.
3. Seiso (Shine)
→→
Departmental Maintenance
The Connection: Seiso is about cleaning and inspection to prevent failure. In a Functional org, the Functional Manager is responsible for "cleaning and inspecting" the department's capabilities.
In Practice: The Functional Manager ensures the staff is trained, the computers work, and the software licenses are paid. They maintain the "assets" (employees) so they are ready when a project needs to "borrow" them. They focus on preventing burnout (wear and tear) within the department.
4. Seiketsu (Standardize)
→→
SOPs & Governance
The Connection: Seiketsu creates the rules that everyone must follow. Functional organizations excel at standardization because they own the "process" regardless of the project.
In Practice: The Engineering Director (Functional Manager) sets the coding standards; the CFO sets the accounting standards. Even if 10 different projects are running, they all must use the Standard processes defined by the Functional organization. This ensures consistency across the enterprise.
5. Shitsuke (Sustain)
→→
Culture & Career Paths
The Connection: Shitsuke is about discipline and making it a habit. Functional organizations provide the home base where culture and long-term discipline live.
In Practice: Projects are temporary, but the Function is permanent. The Functional Manager handles performance reviews, long-term career planning, and hiring strategies. They enforce the company culture and discipline (Sustainment) long after a specific project has closed.
The synthesis of Projectized and Functional organizational structures through the lens of Lean 5S reveals a critical balance between immediate execution and long-term operational health in the construction industry.
While the Projectized model leverages the dynamic energy of Seiri and Seiton to aggressively define Project Scope and optimize site logistics for rapid delivery, the Functional model provides the necessary counterweight of stability. By anchoring Seiso, Seiketsu, and Shitsuke within departmental operations, the organization ensures that the governance and maintenance required for longevity are not sacrificed for speed.
Ultimately, a mature construction firm relies on this duality: utilizing the "setup and sprint" mindset to clear obstacles on the job site, while depending on the "sustain and stabilize" framework of the home office to preserve corporate assets and standards for the future.
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