Process Improvement Methodology for Construction Companies in Afghanistan

Organizations need to manage, combat, and cope with external and internal pressures. These pressures are excessive in the industries with low profit margins but complex operations and production management processes.

Construction industry is one of those industries. Challenges are more severe for construction companies operating in countries with poor economies such as Afghanistan.

Afghanistan enjoyed high economic growth rate between 2004 and 2014, but it declined to -6.79 percent at the end of the fourth quarter of 2015 (World Bank, 2018). In such a struggling economy, surviving is a lifelong challenge for most construction companies. Unfortunately, once famous for their quality work, credible Afghan construction firms failed to survive.

Despite the compound damaging impact of these failures, Afghanistan is still investing in building its infrastructures and has been partnering with the private sector through Public Private Partnerships (PPPs).

In our research efforts, we found out that extensive project delays have been the major cause of construction business failures. By developing a system-oriented process improvement methodology and applying lean manufacturing principles and tools, this study focuses on how to reduce the delays and decrease unit cost of operations and production.

This paper also proposes investing in national-level research initiatives about the management of the PPPs that will have large positive impact on the economic status of Afghanistan and U.S. tax payers who contribute $45 billion annually to stabilize the country.

Finally, the study recommends extending this approach to other business processes and other companies in the construction industry to gain further advantages and ultimately guarantee business survival and growth.

It proposes the engagement of government in supporting construction firms to overcome constraints such as insecurity, corruption, lack of skilled workforce and construction standards