Lean Management of Environmental Consulting

Daniel R. Ball1 and John Maleyeff 2

Abstract: Lean management has traditionally been adopted by manufacturing industries to improve operations through the identification
and elimination of all forms of waste. Encouraged by the successful integration of lean principles in service industries, this article provides
an investigation into the applicability of lean management principles to improve business operations in an environmental consulting
company. An organized approach of applying the five fundamental concepts of lean management 共specify value, identify the value stream,
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flow, pull, and perfection兲 is presented in a manner that environmental managers may use as a model to achieve specific operational goals.
Examples are presented to illustrate how lean concepts were applied at two environmental consulting firms.
DOI: 10.1061/共ASCE兲0742-597X共2003兲19:1共17兲
CE Database keywords: Consulting services; Management; Environmental engineering.

Introduction size employee productivity. However, this emphasis may indi-

Lean management is a total business approach designed to iden-
tify and eliminate forms of waste in the process of producing
goods, services, or combinations of both. Typical forms of waste
include defects, rework, transportation, overproduction, waiting,
unnecessary processing, unnecessary movement, inventory, be-
haviors 共Emiliani 1998兲, and systemic underdelegation where a
task could have been done by someone more junior and less
costly 共Maister 1993兲. The elimination of waste will enable busi-
nesses to improve quality, lower costs, and sustain market com-
petitiveness while at the same time adding customer value and
responsiveness, increasing employee morale, and improving cus-
tomer satisfaction.
A lean management system can be contrasted with the tradi-
tional philosophy that emphasizes economies of scale to gain
competitive advantages. For example, a batch-and-queue manu-
facturing system, where large quantities of a part are produced at
one stage then moved as an entire batch to wait in the queue at the
next stage of production 共Womack and Jones 1996兲, is oriented
toward the production of large volumes for sale at a lower unit
cost than competitors. Although the introduction of lean manage-
ment principles may improve operations and business potential,
some perceived benefits of the current operations will be compro-
mised and the implementation of lean principles should be evalu-
ated on a situation-specific basis. For example, implementing lean
management principles in place of batch-and-queue processes
will eliminate certain wastes encountered during the production
process and reduce the lead times for the production of a product
but may sacrifice the security provided by an inventory buffer.
Likewise, a consulting business may be oriented toward maintain-
ing a high level of client-chargeable time 共billability兲 and empha-
1
PhD Candidate, Univ. of Massachusetts, Amherst, MA.
2
Associate Professor, Lally School of Management & Technology,
Rensselaer Polytechnic Institute, Troy, NY.
Note. Discussion open until June 1, 2003. Separate discussions must
be submitted for individual papers. To extend the closing date by one
month, a written request must be filed with the ASCE Managing Editor.
The manuscript for this paper was submitted for review and possible
publication on September 5, 2001; approved on July 11, 2002. This paper
is part of the Journal of Management in Engineering, Vol. 19, No. 1,
January 1, 2003. ©ASCE, ISSN 0742-597X/2003/1-17–24/$18.00.
rectly encourage unnecessary project work, the development of a
project backlog, systemic underdelegation, and result in a loss of
focus on the customer’s goals. The implementation of lean man-
agement principles in service businesses may increase efficiency
and reduce project costs but may consequently reduce revenues
共due to reduced billability兲 unless the firm is able to capitalize on
its newly available resources and attract additional work.
Five fundamental concepts have been established to define the
philosophy and implementation of lean management: 共1兲 specify
value; 共2兲 identify the value stream; 共3兲 flow; 共4兲 pull; and 共5兲
perfection 共Womack and Jones 1996兲. Initially, customers must
provide the definition of value, which is how the customer deter-
mines whether or not the service provided satisfies their needs.
Once the value desired by the customer has been appropriately
specified, the value stream, consisting of all actions 共encompass-
ing the problem-solving, information management, and physical
transformation tasks兲 required to produce value, must be accu-
rately identified. It is at this step that operational modifications
will be made to identify and eliminate all actions that may not
create value to the customer. The concept of flow is then applied
to the new value stream to enhance the efficient addition of value
through the operational stages and ultimately to the customer. The
newly created value stream can then be used to shift from
‘‘push,’’ where production and delivery instructions originate
from upstream supplier locations regardless of downstream cus-
tomer conditions, to pull, where cascading production and deliv-
ery instructions are implemented at upstream supplier locations
only when signaled by downstream customers 共Womack and
Jones 1996兲. In other words, the system will accommodate the
production of the good or service in response to the customer
demand as opposed to the traditional batch-and-queue mass pro-
duction system, where production takes place in anticipation of
demand. The final fundamental concept in lean management is the
continual striving to achieve perfection through radical and con-
tinuous improvement efforts in the generation and delivery of the
product or service to the customer.
The development of lean management principles originated in
Japanese manufacturing companies during the post-World War II
era 共Emiliani 1998兲. Led by Eiji Toyoda and Taiichi Ohno of the
Toyota Motor Co. and Shigeo Shingo, the lean production phi-
losophy was established in response to the deficiency in human,

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J. Manage. Eng. 2003.19:17-24.

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Fig. 1. Typical project flow chart
material, and financial resources 共Emiliani 1998兲. Although lean
management systems have since been predominantly imple-
mented in manufacturing industries, such as automotive 共Womack
and Jones 19962; Andel 1999; Vasilash 2000兲, aerospace 共Wom-
ack and Jones 1996兲, molding 共Womack and Jones 1996兲, plastics
共Moore 1999兲, computers 共Frynes and Ennis 1994兲, and electron-
ics 共Erkanat 1997兲, it has been reported that service industries
such as airline 共Cromm 1999; Sanchez 1993; Palmer, 1994兲, edu-
cation 共Cromm 1999兲, and lodging 共Cromm 1999兲, have similarly
been improved using lean management systems. This paper will
explore the applicability of lean management principles to im-
prove business operations in the environmental consulting indus-
try.
Environmental Consulting Industry
Environmental consulting companies provide services that may
include the following: environmental site assessments; soil and
groundwater remediation design and system installations; hazard-
ous material 共lead, asbestos兲 monitoring and abatement oversight;
regulatory compliance and permitting; site development 共wet-
lands delineation兲; industrial compliance; municipal services
共water supply and landfill monitoring兲; drilling; underground stor-
age tank removal and installation oversight; and laboratory ser-
vices. These services are provided to an extensive range of clien-
tele, including independent property owners, major oil
corporations, real estate developers, insurance companies, mu-
nicipalities, governmental organizations, law firms, and lending
18 / JOURNAL OF MANAGEMENT IN ENGINEERING / JANUARY 2003
J. Manage. Eng. 2003.19:17-24.
institutions. The staffing makeup of an environmental consulting
firm may include project managers and field personnel with
strong technical backgrounds 共engineering, environmental sci-
ence, biology, chemistry, geology, hydrogeology, toxicology兲 and
skills 共construction, electrical兲, computer aided drawing 共CAD兲
specialists, accountants, government program reimbursement spe-
cialists, and administrative personnel.
Projects are primarily awarded to a company through either
word-of-mouth direct hiring or through a bidding process in
which more than one firm develops a work scope and provides a
cost estimate for the desired service. During a bidding process,
the firm providing the service at the lowest cost to the client will
typically be awarded the project. Once the project has been
awarded, the project manager will coordinate efforts throughout
the company to successfully complete the desired service within
the allotted budget. An example of a typical project flow chart is
included as Fig. 1.
Project costs are usually billed to the client on a unit cost
共lump sum payment兲, pay-for-performance 共fixed payment
amounts at the successful completion of various stages of a
project, regardless of the costs incurred to complete the respective
stage兲 or a time and materials basis. In addition, some time and
material costs may be eligible for reimbursement under state
sponsored insurance programs. It is readily apparent that if
projects can be accomplished more quickly or less costly, in-
creased profits will result for projects billed with either a unit cost
or pay-for-performance structure. Firms that engage in contracts
billed primarily on a time and materials basis will likely experi-
ence reduced financial benefits with lean management systems.
 Table 1. Examples of Waste in Environmental Consulting Industry
Waste form Examples and situations where waste is encountered
Defects • Report preparation 共errors兲
• Environmental sampling events 共incorrect sample locations or techniques兲
• Equipment usage 共equipment malfunctions兲
• Remedial system pilot testing 共errors in data collection; insufficient scope; inappropriate test type兲
• Field monitoring 共collecting incorrect or insufficient data兲
• Project management 共insufficient budget tracking兲
Rework • Report preparation 共revisions and reviews兲
• Environmental sampling events 共resampling兲
• Remedial system design and maintenance 共revisions to design; repeat maintenance events兲
• Development of computer drawings 共drawing revisions兲
• Accounting services 共billing; tracking invoices and purchase orders兲
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Transportation • Unnecessary site visits

• Inefficient scheduling 共travel time between sites that are not in close proximity to each other兲
• Interoffice transport of documents and field notes
Overproduction • Preparation of reports 共or sections in reports兲 that are not required
• Collection of unnecessary environmental samples
• Maintaining duplicate project files
• Conducting any work that has not been requested
Waiting • Preparation for fieldwork 共loading and calibrating equipment; securing appropriate vehicles兲
• Development of reports 共waiting for sections if using multiple authors; report reviews兲
• Waiting for approval to begin next project phase
• Unnecessary interruptions during meetings
Unnecessary processing • Generation of reports that are either overly complicated or not required
• Maintenance of excess project files
Unnecessary movement • Preparation of reports that include multiple authors or are subject to excess reviewers or revisions
• Unnecessary site visits
• ‘‘Last minute’’ scheduling changes 共unnecessary fieldwork preparation兲
• Locating information and equipment that is not properly organized
Inventory • Excess equipment and supplies
• Time associated with tracking down equipment not properly organized
• Inability to charge client for equipment usage due to either inefficient field operations and project
management, or inadequate equipment billing rates
• Project work backlog
Behaviors • Confusion regarding project scopes
• Negativity due to miscommunication or consistent occurrence of other forms of waste
• Other examples are provided by Emiliani 共1998兲
Systemic underdelegation • Inefficient task distribution 共requiring highly-priced staff to locate files or prepare reports that a more
junior employee could do; not utilizing skilled field technicians to fullest potential兲

However, benefits may include a lower cost to conduct business;
enhanced reputation for word-of-mouth direct hiring; increased
competitiveness when bidding for new projects; increased re-
source capacity; and robust buffering against potential fluctua-
tions in governmental reimbursement allotments or insurance ad-
justments.
Operations of an environmental consulting company are prone
to the typical forms of waste experienced by other businesses.
These forms of waste include the aforementioned defects, rework,
transportation, overproduction, waiting, unnecessary processing,
unnecessary movement, inventory, behaviors 共Emiliani 1998兲 and
systemic underdelegation 共Maister 1993兲 and may occur at any
stage within the project duration. Examples and situations where
each of these forms of waste may be encountered in the environ-
mental consulting industry are included in Table 1. Applying the
five fundamental concepts 共specify value, identify the value
stream, flow, pull, and perfection兲 to the operations of an environ-
mental consulting company should enable the firm to eliminate
the sources of waste presented in Table 1 and achieve the benefits
of lean management.
Applying Five Fundamental Concepts
The same five fundamental concepts used in manufacturing and
other service industries may be used to provide a framework for
the implementation of lean management in an environmental con-
sulting company. This section will address how lean management
principles would be applied to an environmental consulting busi-
ness.
Specify Value
Typically, a client will conduct business with an environmental
consulting company with the goal of achieving some level of
regulatory environmental compliance quickly and at minimal
cost. This compliance status may be achieved through value-
creating processes ranging from obtaining permits to the remedia-
tion of complex hazardous waste spills.
Although the concept of specifying value may appear evident,
it is not uncommon for a company’s operations to be tailored
toward maximizing employee productivity to achieve some de-

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J. Manage. Eng. 2003.19:17-24.

 sired profit margin. This approach may unintentionally result in
employees losing sight of the customer’s goal and conducting
unnecessary work to increase client-chargeable time 共billability兲
and, therefore, company revenues. In addition, project managers
in a scientific and engineering based consulting company may
often become so absorbed with the scientific nature of a project
that the possibility exists of losing sight of the customer’s end
goal and conducting unnecessary assessment investigations, re-
medial activities, report preparations, or engineering design speci-
fications. Whereas these actions may be required in some in-
stances, an operation must be able to maintain its focus on the
client’s ultimate goal of establishing environmental compliance
quickly and at minimal cost without compromising scientific in-
tegrity.
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In complex situations, one approach that may be used to aid in
specifying value is to utilize quality function deployment 共QFD兲,
a visual decision-making procedure that may be used by inter-
functional disciplines to develop product design specifications
consistent with those desired by the customer 共Womack and Jones
1996; Chase et al. 1998; Tan and Shen 2000兲. An alternative ap-
proach is the integration of Kano’s model to illustrate the rela-
tionship between customer satisfaction and the performance of a
product or service with respect to the following three distinct
categories: 1D attributes; attractive attributes; and must-be at-
tributes 共Tan and Shen 2000兲. These techniques provide a means
to translate customer requirements into the development of a
product or service by integrating the perspectives and efforts of
each discipline. For example, QFD techniques may distinguish a
difference in value desired by a property owner striving to de-
velop a brownfield site for industrial use with that of a party
responsible for ensuring the cleanup of contaminated groundwater
in the vicinity of a public drinking water source.
Identify Value Stream
After value is specified, the current value stream should be iden-
tified. Depending on the specific goals of the lean initiatives, this
value stream may encompass all actions and interactions currently
conducted during all phases of a project 共including project man-
agement; engineering design; and field, accounting, and adminis-
trative services兲, or may target one specific value-creating process
共site assessment; engineering design兲 or task 共flow of information
from field technician to project manager兲.
Although the value stream may be documented in a manner
consistent with a manufacturing process 共Rother and Shook
1999兲, some aspects of the value stream will differ due to the
service-oriented nature of an environmental consulting firm. For
example, process time 共measure of efficiency兲, average billing
rates 共identify underdelegation兲, and total process costs may be
better performance metrics than those used in traditional manu-
facturing operations 共including cycle time, changeover time, and
production batch sizes兲. The performance metrics chosen may
relate better to the typical improvement goals that an environmen-
tal consulting company may develop for its operations. In addi-
tion, the flow of a project through the organization may follow
different paths depending on the respective project goal 共some
projects in an engineering value-creating process may require re-
mediation system design and subsequent installation, whereas
others may only require remediation system performance moni-
toring兲. As a result, the appropriate value stream will depend on
the specific goals of the project.
Once the current value stream has been identified, a detailed
analysis may be conducted to determine sources of waste. Pos-
20 / JOURNAL OF MANAGEMENT IN ENGINEERING / JANUARY 2003
J. Manage. Eng. 2003.19:17-24.
sible situations and examples of each form of waste that may be
identified during the analysis of the value stream for an environ-
mental consulting firm were previously presented in Table 1. In
addition to the specific actions and interactions that contribute to
these wastes, the existing organizational and project management
structures may not fully support lean operations. For example, an
analysis of the value stream may indicate that an organization
segregated into functional departments 共accounting, administra-
tive, scientific/technical departments兲 may not be as effective at
producing value as one aligned in accordance with specific value-
creating processes 共drilling, engineering services, industrial com-
pliance, site assessment兲. In addition, the current project manage-
ment structure may in fact hinder the ability to efficiently share
necessary resources 共information兲 and accurately track project
progress and costs, regardless of the organizational structure.
Thus, the current value stream may be used as a tool toward
identifying actions and interactions, as well as organizational and
project management structures that may contribute waste to a
project. With the sources of waste identified, a desired value
stream can then be created and used as a guide to institute leaner
operations that eliminate as much waste as possible.
Flow
The concept of flow is then applied to the desired value stream to
enhance the efficient addition of value through each stage of the
project and ultimately to the customer. This concept may be ap-
plied to all aspects of a company’s operations, from the entire
organizational and project management structures to specific tasks
necessary to collect environmental samples. The concept of flow
should be applied in two phases for an environmental consulting
organization: 共1兲 develop organizational and project management
structures capable of supporting lean operations, and 共2兲 modify
operations to improve flow within these structures.
Because of the highly specialized backgrounds of individuals
typically present within an environmental consulting company,
the organizational structure should be devised to capitalize on the
efficiencies of each individual’s area of expertise while maintain-
ing an effective level of project management. This organizational
structure may consist of various value-creating divisions with re-
spect to each staff member’s background. For example, one group
may be trained to conduct environmental site assessments effi-
ciently while another may excel in the engineering design of com-
plex remediation systems.
In order to maintain sufficient project flow, the management
structure should allow a project manager to retain both responsi-
bility and control throughout the duration of a project, regardless
of the project phase. Often a project will begin in one phase 共site
assessment兲 and transfer to another phase 共remediation兲. In these
cases, it is not uncommon for the original project manager in one
value-creating division to retain responsibility for the project 共en-
suring that established budgets are adhered to兲 while members of
another division control the project’s activities. This separate
responsibility/control management structure may contribute to
waste due to inhibited flow of information between the divisions
and a lack of centralized budgetary control by the project man-
ager. In addition, frustration may arise when the project manager
is held responsible for the financial and performance outcomes of
the project, but may not have the control over specific activities or
be properly informed of the project status. In order to support a
lean environment, it is important that both responsibility and con-
trol be granted to the project manager. Maintaining responsibility
and control will enable the project manager to be aware of the
 Table 2. Examples of Flow Techniques
Flow techniques
Kaikaku
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Examples of usage
• Organizational realignment 共value-creating divisions; constant project management; effective utilization of
staff and respective billing rates–reduce/eliminate underdelegation兲
• Report structure 共elimination of unnecessary sections兲
• Report flow process 共eliminate unnecessary authors and reviewers; develop and track templates for general,
non site-specific sections; logical order regarding preparation of sections, especially if using multiple authors兲
• Environmental sampling and remedial pilot testing protocol 共eliminate unnecessary sampling locations and
analyses, and pilot testing tasks兲
• Accounting system 共develop purchase order tracking system; institute modern software to reduce manual
entries; improve timeliness of invoicing procedures; monitor accounts payable/receivable statistics兲
• Project management and budgetary tracking system 共develop and adhere to focused scopes of work; maintain
accurate budgets; update and record all costs; require project management approval for all project-related

purchases; maintain centralized proposal/contract files兲

• Filing system 共eliminate duplicate copies of field notes, reports, and correspondence; attain timely flow of field
notes to files兲
• Fieldwork scheduling system 共link together jobs in same locale to reduce travel time; provide scheduling
flexibility for last minute jobs; reduce unnecessary fieldwork preparation by changing schedule only when
absolutely necessary兲
• Equipment reservation policies 共centralized reservation log for interdepartment shared equipment; maintain
sufficient supply of equipment兲
• Inventory policies 共develop standard equipment and supply ordering criteria; track costs/profits due to
purchased equipment and inventory兲
Poka-yoke • Report checklists 共completed sections if using multiple authors; organized review process; confirmation of
review; schedule of report deadlines; monitor report deliverable statistics兲
• Project phase checklists 共plume delineation; risk assessment; system design criteria兲
• Inventory inspections 共maintain proper level of supplies; reduce amount of excess inventory兲
• Fieldwork preparation guidelines 共ensure proper equipment兲
• Itemized fieldwork scopes 共ensure focused work; ensure essential tasks are completed; reduce probability of
nonessential tasks兲
• Equipment maintenance 共routine calibrations; functionality checks兲
• Invoice checklists 共ensure proper billing of equipment and supplies兲
• Purchase order tracking system 共maintain control of accounting system兲
• Remediation system operation and maintenance 共status sheets to ensure required data is collected; produce
organized field notes兲
5Ss • Equipment and inventory organization 共layout geared to reduce fieldwork preparation time兲
• Filing system 共centralized files to reduce time to access information兲

current project status and encourage the close monitoring of all
stages of the value stream to maximize flow and reduce the po-
tential for situations that may result in waste, such as underdel-
egation. If a situation arises where a change in the project man-
ager will result in enhanced quality and accelerate the production
of the value to the client, then both project responsibility and
control should be assigned to the new project manager.
Although it may appear that an effective organizational and
project management structure alone will result in a lean operation,
it is also important to examine the desired value stream and de-
velop systems to allow the individual tasks to flow adequately.
This step may include the use of some of the traditional manu-
facturing techniques such as kaikaku, which are radical improve-
ments of an activity to eliminate waste 共Womack and Jones
1996兲, poka-yoke, which are mistake-proofing devices designed to
prevent product defects and improve quality 共Shingo 1986; Wom-
ack and Jones 1996兲, and the 5 S’s 共Womack and Jones 1996兲,
which refer to the creation of a workplace suited for visual control
and lean production and include: 共1兲 seiri 共to separate needed
tools, parts, and instructions from unneeded materials and to re-
move the unneeded materials兲; 共2兲 seiton 共to neatly arrange and
identify parts and tools for ease of use兲; 共3兲 seiso 共to conduct a
cleanup campaign兲; 共4兲 seiketsu 共to conduct seiri, seiton, and seiso
at frequent intervals to maintain a workplace in perfect condi-
tion兲; and 共5兲 shitsuke 共to form the habit of always following seiri,
seiton, seiso, and seiketsu兲. Examples of how each of these tech-
niques may be used are included in Table 2. The flow techniques
and examples presented in Table 2 are potential methods that may
be used to achieve flow in an environmental consulting company.
Because the organizational and project management structures
and operating procedures may differ for each company, the cur-
rent situation of the firm must be evaluated before implementing
any of the flow techniques.
Pull
Once the organizational and project management structures have
been put in place to accommodate lean operations, and systems
have been developed to achieve flow within the desired value
stream, the entire system can be set up to allow for a pull-oriented
project flow. Essentially, no services would be produced at up-
stream stages until triggered by the downstream customer. This
pull-oriented philosophy will enable the company to reduce the
amount of waste caused by conducting unnecessary work 共sched-
uling field personnel solely to maintain chargeable goals兲 or re-
taining excess levels of inventory items, and will allow the opera-

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J. Manage. Eng. 2003.19:17-24.

 tion to better accommodate shifts in demand. A close examination
of the current and desired operations may reveal additional as-
pects of the value stream and flow concepts that should be im-
proved to attain successfully a pull-oriented system. These areas
of improvement may become evident when viewing the system
either internally to improve specific value processes or externally
to improve service directly.
As with the concept of flow, techniques traditionally used in a
manufacturing environment, such as a kanban system, which uti-
lizes a simple card to regulate pull in an operating system by
signaling upstream production and delivery 共Womack and Jones
1996兲, may be employed to help an environmental consulting
company achieve a pull-oriented project flow. A kanban may be
used to regulate the flow of report preparations, initiate field work
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activities, or trigger the ordering of various inventory items. For
example, a kanban system may include a ticket or card used to
maintain an appropriate level of inventory items 共granular acti-
vated carbon treatment units兲 required at job sites. This use of a
kanban system will ensure that sufficient inventory items are
available to maintain project continuity, while reducing the in-
vestment of unnecessary inventory.
With an effective project management system in place, a pull-
oriented project flow will enable the project manager to maintain
control over operations and ensure that the project proceeds in
accordance with the established work scope and budget. This in-
creased level of project control will enable the company to effec-
tively complete projects and also identify additional areas for con-
tinual improvement. A pull-oriented system should also allow for
enough operational flexibility to accommodate specific shifts in
customer demand. This demand may impact all aspects of the
organization ranging from accounting 共immediate invoice re-
sponse兲 to field services 共emergency spill responses兲. The in-
creased level of customer service that is provided with a pull-
oriented system will help to retain current customers and
potentially increase its customer base through word-of-mouth rec-
ommendations.
Perfection
The company must now apply the final fundamental concept in
lean management and continually strive to achieve perfection in
the generation and delivery of the service to the customer. This
concept will require the development of systems designed to ac-
curately measure and evaluate the effects of the lean initiatives.
For example, a lean accounting system may be developed to in-
clude a value-stream/product-based costing system to accurately
track costs at each stage of the value stream 共Womack and Jones
1996兲.
Management will be required to continually evaluate the value
stream for each product and the performance measurement sys-
tems and determine areas that may require improvements through
either kaikaku or kaizen techniques, which consist of continuous,
incremental improvements of an activity to create more value
with less waste 共Womack and Jones 1996兲. In order to remain
focused in the transition of these areas to lean, management
should utilize the concept of policy deployment 共known in Japa-
nese as hoshin kanri兲, which refers to a strategic decision-making
tool used by management to focus the resources and critical ini-
tiatives necessary to accomplish the desired business objectives
共Womack and Jones 1996兲. In environmental consulting compa-
nies, policy deployment would determine and prioritize goals,
select projects necessary to achieve these goals, designate re-
quired people and resources, and establish target levels and an
22 / JOURNAL OF MANAGEMENT IN ENGINEERING / JANUARY 2003
J. Manage. Eng. 2003.19:17-24.
acceptable timeline. These efforts to achieve perfection may in-
clude further organizational realignment, modifications to the
value-creating processes, or even changes to the services offered
to current and prospective clients. Although absolute perfection in
the operations of the firm will never be achieved, the constant
attention to sources of waste will allow the organization to con-
tinually improve operations and produce the value desired by the
client at reduced operational costs to the firm.
Implementation Approach
An environmental consulting company should follow an orga-
nized approach in order to effectively utilize the five fundamental
concepts and successfully implement lean management prin-
ciples. This approach includes: identifying areas of improvement
and establishing management support; organizing a lean manage-
ment committee; applying the lean concepts to an isolated value-
creating process or task; expanding lean initiatives to other value-
creating processes and tasks; and appropriately adjusting the
company business strategy.
Initially, management must identify motivating factors for
modifying the company’s current operations. These factors may
include the inability to achieve expected profit margins, maintain
proper project budgets, or successfully complete projects within a
specified timeframe. With a desire to improve operations by mini-
mizing waste, the company should designate a lean management
committee dedicated to improving the current operations through
lean principles. This committee would be facilitated by a change
agent, who is responsible for educating employees about the un-
derlying principles of lean management and integrating the con-
cepts into the standard business practices. The committee should
encourage input from all employees at each level of the organi-
zation to gain a better idea of potential sources of waste from
each person’s perspective and garner a sense of inclusion in the
improvement efforts from each employee.
The committee should then identify one value-creating process
or task that needs improvement to be designated as the starting
point area. For example, lean initiatives may be implemented to
improve the flow of information 共field notes兲 from field techni-
cians to project managers in the engineering services division.
The five fundamental concepts should be applied to this process
while the rest of the organization continues to operate in accor-
dance with current procedures. Success in this process will gen-
erate interest across the company and encourage implementation
in other value-creating processes. This approach is similar to that
used in the Toyota Production System where design changes can
be made in one part of the organization without unduly affecting
other parts 共Spear and Bowen 1999兲. As a result, implementation
and feedback can occur quickly and, if the results indicate suc-
cess, managers initially skeptical of the operational changes may
be more willing to adopt the new practices. Thus, the success of
the lean initiatives in the starting point area will then serve to
encourage its expansion to other areas in the division and, ulti-
mately, the entire company.
Once lean principles have been integrated into various value-
creating processes throughout the company, the lean management
committee should expand to include representatives from each
value-creating division to report on progress 共successes and diffi-
culties兲, develop periodic plans for improvement, and continually
train employees about lean concepts and skills. Although unnec-
essary meetings would contribute to waste, the designated change
agent would monitor the progress of lean implementation efforts
 throughout the company and facilitate meetings with the commit-
tee on an as-needed basis to identify new applications for kaikaku
and kaizen techniques.
Finally, because the successful implementation of lean man-
agement will result in an increase in the amount of available
resources, the company should be prepared to modify its existing
business plan and develop a growth strategy to capitalize on the
potential opportunities that may exist. These modifications may
include increased marketing efforts aimed at attracting additional
work from current and prospective clients, the expansion of the
company into new geographical markets, or the diversification of
services provided into related areas.
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Implementation Examples
Lean concepts were applied to two environmental consulting
firms in an effort to improve client satisfaction. In order to ensure
confidentiality, the firms will be referred to as Firm 1 and Firm 2.
In this section, the implementation of the five fundamental lean
concepts will be discussed. For both firms, petroleum industry
clients made up their primary customers. A typical request would
be to perform the environmental services associated with the re-
moval of underground storage tanks at a gasoline station. These
services would begin with a soil quality test and then, if petro-
leum impact is detected, a subsequent full-scale site assessment
would be performed, potentially leading to the design, installa-
tion, and operation and maintenance of a subsurface remediation
system. Other client requests follow similar patterns of site as-
sessment, design, installation, and maintenance. This work would
typically be documented as part of a governmental regulatory
reporting system. The motivation for considering the application
of lean concepts was primarily to reduce costs and ensure client
satisfaction in what is a very competitive industry.
Specify Value
For both firms, the primary focus is to ensure client satisfaction
by accurately achieving all regulatory standards in a timely fash-
ion at a minimal cost. The firms’ secondary focus is to ensure that
the intent of the regulatory standards is met in a manner that
protects the health and safety of the public. The latter focus may
only be in effect in the rare case where a particular client is
motivated to deceive or otherwise violate the intent of the appli-
cable standard.
Identify Value Stream
The framework presented in Fig. 1 describes the main value-
added tasks that were identified as making up the value stream for
the two firms. Using the gasoline station client as an example, the
tasks would typically consist of a subset of the following: 共1兲
outline scope of work; 共2兲 project bidding; 共3兲 schedule develop-
ment; 共4兲 overseeing of tank excavation; 共5兲 site assessment; 共6兲
remediation services; 共7兲 postremedial monitoring; and 共8兲 site
closure.
Flow
The organizational and project management structures of the two
firms differed and thus provide a means for comparing their struc-
ture impact on providing value to clients and supporting lean
operations. In Firm 1, the organization was function-based with
JOURNAL OF MANAGEMENT IN ENGINEERING / JANUARY 2003 / 23
J. Manage. Eng. 2003.19:17-24.
separate departments providing their unique skills 共assessment,
remediation, etc.兲 to achieve project goals. In Firm 2, the organi-
zation was client-based with each department responsible for ser-
vicing a similar group of clients with all tasks required being
performed within the department.
The function-based organization at Firm 1 took advantage of
each worker’s individual skills. Project management was origi-
nally decentralized with responsibility shifting from one manager
to the next as tasks were completed. This structure led to tasks
being done in series and resulted in long project durations. In an
effort to reduce the project durations, one centralized project man-
ager was given the responsibility to oversee an entire project. To
minimize project duration, schedules were developed that in-
volved performing multiple tasks concurrently. However, this
schedule format resulted in some tasks being performed unneces-
sarily or being reworked after subsequent information became
available. One of the main causes of inefficiency was information
disconnect that often existed between project manager and the
group performing the work.
At the client-based organization 共Firm 2兲, projects were as-
signed to a single staff member who was responsible for coordi-
nating all tasks required for project completion. This structure
allowed for reduced project misinformation and unnecessary
work and fostered a cross-disciplined employee skill growth.
However, some tasks took longer than necessary, especially when
a problem arose that was beyond the scope of expertise for the
staff member. In this case, rework was performed or delay oc-
curred while assistance was requested from other staff members,
who had the necessary expertise to solve the problem.
The experiences of the two firms illustrate what happens when
competitive pressures motivate organizations to apply lean con-
cepts. In Firm 1, in an effort to reduce lead times, project man-
agement responsibility was changed, but some new forms of
waste materialized. In Firm 2, a structure that generally is thought
to be required for lean systems fell short at times. It appears that
the hybrid organizational structure that consists of cross-trained
workers can be effective. However, to be effective, personnel
must have quick access to workers with specialized skills and
operate in such a way that no tasks would be performed unnec-
essarily. The methods described in the next section can be used to
help encourage reduced lead times and project costs without un-
necessary tasks being performed.
Pull
At both firms, significant improvements in operations were ob-
tained through the implementation of a pull system. Some of the
operational changes that followed a pull methodology are de-
scribed below:
• A kanban system for controlling the inventory of field granular
activated carbon treatment units was implemented. This sys-
tem reduces inventory and ensures that enough carbon is on
site or available at the office stockyard. In this system, a small
inventory of units is available at each site. When only one unit
remains on-site, a card containing specific characteristics of
the unit and ordering quantity is delivered to a centralized
inventory manager, who immediately places an order to re-
plenish the inventory. Prior to the implementation of this sys-
tem, some sites included unnecessarily high inventory levels
while other sites experienced frequent project delay due to an
inadequate supply of units. The kanban system ensures avail-
ability while minimizing inventory levels and simplifying in-
ventory management.
 • The work order system was redesigned to ensure that the
worker will the appropriate level of expertise is assigned to
each job task. This system reduces underdelegation of tasks,
reduces rework of mistakes, and ultimately lowers project
costs.
• A pull system for preparing quarterly and semiannual site
monitoring reports was implemented. In this system, each site
has a specific file where field notes are inserted upon comple-
tion. Copies of lab reports are inserted as soon as they are
completed and a document tracking sheet is added to signal
that the subsequent task is ready to be performed. The contents
of the reports were reduced to minimize unnecessary textual
writings and deliver only the information desired by the client.
• A formalized system for initiating each main job task was
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implemented to ensure that no work would be completed prior
to the completion of predecessor tasks. In this system, written
work orders are required before a task is performed. The sys-
tem reduces the amount of unnecessary work conducted on a
project and ensures that the project manager has control of the
project. Also, work is only conducted if signaled by the down-
stream source, including the requirement of a signed project
contract or change order from the client. The system also
makes it easier to identify operational problems when review-
ing project costs in the billing worksheet.
• A standardized checklist was developed for site assessments
and remediation system operation and monitoring events to
ensure that all tasks were performed when required. This fool-
proofing mechanism reduces the number of oversights and re-
sulting site visits necessary to complete tasks that should have
been performed during an earlier visit.
Perfection
In the two firms, monitoring and control systems were put into
place to track performance relative to providing value to custom-
ers. To supplement accounting systems that provided cost control,
systems were developed to control project duration times. For
each project, a new system keeps track of deliverable dates and
whether or not due dates are met. Another system keeps track of
the results of client reviews, which are now required for each
completed project. This system allows the firms to directly moni-
tor and control the satisfaction level of clients. The information
from these systems provides insights into where operations were
effective and where improvements are needed.
Other facets of the system to control and monitor performance
included the development of standardized monthly project billing
worksheets to track costs with respect to budgets and periodic
staff meetings for obtaining qualitative input on performance. For
example, through these meetings, the positive effect of the kanban
system for controlling the ordering of granular activated carbon
treatment units was evident in terms of less frustration by workers
who previously would have to either go back to the office to pick
up a unit or shut down the system due to a shortage of units. At
these meetings, other applications of the kanban control system
and foolproofing were discussed.
On an annual basis, policy deployment plans are developed,
thus ensuring that plans continue to be focused on how to more
aggressively achieve the goals of clients. This periodic activity
24 / JOURNAL OF MANAGEMENT IN ENGINEERING / JANUARY 2003
J. Manage. Eng. 2003.19:17-24.
prevents the companies from being too focused on internal issues
that may or may not directly impact client satisfaction.
Summary
The intent of this study was to explore the applicability of lean
management principles to improve business operations in an en-
vironmental consulting company. Although the lean philosophy
was originally applied to manufacturing industries, other service
industries have successfully integrated lean management to im-
prove operations. This study has presented the five fundamental
concepts of lean management so that environmental consulting
firms can use them to reduce waste and enhance their business
operations. In addition to this framework, an organized imple-
mentation approach must be developed on a case-specific basis
for each company, depending on its respective current operational
status and designated goals. Because these lean management prin-
ciples appear to be applicable to an environmental consulting
company, it would seem likely that other companies of a similar
scientific and technical nature may also benefit from the lean
management model presented in this study.
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