Governing stochastic service demands in lean construction: a hybrid LPS-Scrum model

Lean Construction planning systems, such as the Last Planner System (LPS), are effective in stabilizing production flows but face limitations when applied to service‑oriented contexts characterized by high variability and stochastic demand. This paper addresses this gap by proposing and evaluating a Lean–Agile governance model that integrates adaptive prioritization mechanisms from Scrum with commitment‑based execution mechanisms from the LPS. Using a Design Science Research approach, a governance artefact was developed and implemented in the technical assistance function of a residential construction company. The model structures governance across three layers: demand discovery, value‑based prioritization, and execution commitment. Results from a 70‑week longitudinal evaluation indicate reductions in service lead time, improved backlog stability, and increased transparency in decision‑making. The study contributes to Lean Construction research by demonstrating how commitment‑based planning systems can be extended to stochastic service environments through context‑sensitive governance design.