lean project management

Lean Project ManagementLean Project Management

David Butcher and Steve Pearson

Outline of PresentationOutline of Presentation

•• Overview of Lean Project ManagementOverview of Lean Project Management

•• Lean Project Management in the Highways Lean Project Management in the Highways

AgencyAgency

•• Lean Project Management in constructionLean Project Management in construction

•• Lean Project Management ToolsLean Project Management Tools

From Mass Production From Mass Production ……

1860s 1860s Mass production of armaments and clothing

Early 1900s Early 1900s Beginning of the development of statistical methods of analysis

1920s1920s Ford – time and motion studies

1930s1930s GM – choice based on complicated forecasts and big batches

1950s1950s worldwide – mass production, lower costs but waste evident

1960s1960s Motorola – Six Sigma process method for analysis of variation

Lean HistoryLean History

…… to Lean Productionto Lean Production

1940s1940s Eiji Toyoda visits Ford – impressed with scale/flow BUT not waste!

1950s1950s Toyota commences the path of “Toyota Way” and Production System

1970s1970s Six Sigma methods incorporated in the “Toyota Way”

1980s1980s The “Toyota Way” begins the development of Lean

1990s1990s Worldwide all major blue chip manufacturers have adopted Lean

Lean HistoryLean History

What is Lean?What is Lean?

OutcomesOutcomes

•• Lean will maximise customer value while minimising wasteLean will maximise customer value while minimising waste

•• Lean creates more customer value with fewer resourcesLean creates more customer value with fewer resources

•• Lean provides:Lean provides:

–– fast, flexible processes fast, flexible processes

–– that give customers what they want, when they want itthat give customers what they want, when they want it

–– at the highest quality and affordable costat the highest quality and affordable cost

What is Lean?What is Lean?

ProcessProcess

•• Lean is a methodology which aims to identify blockages to Lean is a methodology which aims to identify blockages to

workflow, and take away those which have no use.workflow, and take away those which have no use.

•• The ideal of Lean is uninterrupted workflow, with every The ideal of Lean is uninterrupted workflow, with every

action providing value of some kind.action providing value of some kind.

•• However, Lean is also about building a culture in which the However, Lean is also about building a culture in which the

abilities of staff are fully used and continuous improvement abilities of staff are fully used and continuous improvement

is embedded into the organisation.is embedded into the organisation.

What does Lean look like?What does Lean look like?

•• Workflows Workflows kept simple, eliminate complexity where possiblekept simple, eliminate complexity where possible

•• Strive for error prevention Strive for error prevention rather than constant checkingrather than constant checking

•• Minimise work in progressMinimise work in progress, queues and delays, queues and delays

•• Provide what is required, not what you think is Provide what is required, not what you think is customer demandcustomer demand

•• People work in People work in selfself--managed teams managed teams to deliver a first class serviceto deliver a first class service

•• Active involvement Active involvement of everyone in the improvement processof everyone in the improvement process

•• Focus on processes Focus on processes not individual tasksnot individual tasks

The overriding emphasis is the focus on adding The overriding emphasis is the focus on adding value and removing wastevalue and removing waste

The four The four ‘‘PP’’s of Lean:s of Lean:

People & PartnersPeople & PartnersBuilding a solid relationship Building a solid relationship

with our partners in order to with our partners in order to

fully integrate our work fully integrate our work

process.process.

PhilosophyPhilosophyFollowing a Following a

philosophy of long philosophy of long

term sustainable term sustainable

improvement.improvement.

End to end ProcessEnd to end ProcessContinually improving Continually improving

processes to deliver value processes to deliver value

efficiently and effectively.efficiently and effectively.

Problem Problem

SolvingSolvingMaking the Making the

most of staff most of staff

experience, experience,

knowledge & knowledge &

ingenuity.ingenuity.

IsnIsn’’t Lean just another word for t Lean just another word for ‘‘Common SenseCommon Sense’’??

•• This is not rocket science This is not rocket science –– and it is not magicand it is not magic

•• Yes, it is common sense, but itYes, it is common sense, but it’’s a system which has s a system which has

been tried and tested, and has been proven to be been tried and tested, and has been proven to be

workable.workable.

•• It scrutinises the way that people do things and It scrutinises the way that people do things and

identifies very specifically those things which cause identifies very specifically those things which cause

unnecessary interruptions to the way that work unnecessary interruptions to the way that work

progresses.progresses.

•• CLOTHES HORSECLOTHES HORSE

The 8 WastesThe 8 Wastes

Lean classifies different kinds of waste which Lean classifies different kinds of waste which prevent streamlining.prevent streamlining.

• Transport (of materials, equipment)

• Inventory (overstocking, understocking, or damage of materials)

• Motion (Design of material flow)

• Waiting (e.g. waiting for signatures)

• Over-processing (handling something more times than is necessary)

• Overproduction (creating a system which produces too many items)

• Defects (e.g. production defects through any means)

• Skills (This was added later to the Acronym due to the realisation that training etc. was essential for all the others to be found and eliminated)

Acronym: TIM WOODS

Lean differs from conventional thought with its Lean differs from conventional thought with its

ideas of ideas of ‘‘pushpush’’ and and ‘‘pullpull’’

PushPush:: Making product before the customer demands it Making product before the customer demands it –– mass production in advance of ordermass production in advance of order

PullPull:: Creation of product is triggered by the customer Creation of product is triggered by the customer –– one piece flow stimulated by orderone piece flow stimulated by order

Benefits of pull:Benefits of pull:

•• can confirm that each product has a customer can confirm that each product has a customer

•• opportunity to be flexible and make changesopportunity to be flexible and make changes

•• defects are spotted early by only producing one unit at a timedefects are spotted early by only producing one unit at a time

Creating the Lean EnterpriseCreating the Lean Enterprise

3 Key Questions3 Key Questions

•• Where are we today? Where are we today? ((‘‘the current statethe current state’’))

•• Where do we want to be? Where do we want to be? ((‘‘the future statethe future state’’))

•• How do we get there? How do we get there? Many initiatives dive straight in Many initiatives dive straight in

here . . . here . . . and donand don’’t deliver the benefitst deliver the benefits

•• This is fundamental to allowing robust improvementThis is fundamental to allowing robust improvement

How would using Lean impact on me/my team/ my How would using Lean impact on me/my team/ my

directorate?directorate?

•• Lean project management will free up valuable time for Lean project management will free up valuable time for staff by removing actions which add no value.staff by removing actions which add no value.

•• It will reduce the frustration which may come from It will reduce the frustration which may come from aspects of work which are not felt to be necessary.aspects of work which are not felt to be necessary.

•• It will allow staff to attend to those tasks which are the It will allow staff to attend to those tasks which are the most productive.most productive.

How Lean impacts the bottom lineHow Lean impacts the bottom line

•• Do MoreDo More……

–– World class customer serviceWorld class customer service

–– Improved qualityImproved quality

–– Speeding up the programmeSpeeding up the programme

–– Improved working environmentImproved working environment

How Lean impacts the bottom lineHow Lean impacts the bottom line

•• With LessWith Less……

–– Equipment/plantEquipment/plant

–– SpaceSpace

–– Human effortHuman effort

–– InventoryInventory

–– Time/costTime/cost

–– Through the relentless elimination of waste and Through the relentless elimination of waste and reduction of variationreduction of variation

TTransportationransportation IInventorynventory MMotionotion

WWaiting aiting

(Idle time)(Idle time) OOverver--ProcessingProcessing DDefects / Rejects / Reefects / Rejects / Re--workwork

OOverver--ProductionProduction SSkills Misusekills Misuse

•Retrieving or storing files

•Going to the printer

•Carrying or posting paperwork

•Open projects

•E-mails unread

•Office supplies

•Unused records in database

•Handoffs

•Extra key strokes

•Going to get signatures

•Searching for files / handling paperwork

Waiting for…

•Slow pc’s

•Customer response

•Authorisation

•The printer / photocopier

•Repeated manual entry of data

•Un-needed process steps•Data entry errors

•Pricing errors

•Missing information

•Not using people to their full potential •A system which calls for extra copies

•A system which continues to create reports which are no longer read

The 8 WastesThe 8 Wastes-- TIM WOODSTIM WOODS

Problem Solving(continuous improvement and learning)

Process(eliminate waste)

People and Partners(respect, challenge and develop)

Philosophy and Purpose(long-term thinking)

What characteristics does a Lean organisation have?What characteristics does a Lean organisation have?

ItIt’’s about getting more (or the same) for less by s about getting more (or the same) for less by

empowering people to ensure we are doing the empowering people to ensure we are doing the

right thing the right way!right thing the right way!

SummarySummary

• Lean is a way of thinking

• Lean aims to come closer and closer to providing

customers with what meets their need/s

• At the heart of Lean are flexible, motivated team

members continuously solving problems

• Lean is about continuous improvement, the path doesn’t

end


•• Overview of Lean Project Management Overview of Lean Project Management


AgencyAgency



Lean Delivery in HA Lean Delivery in HA –– HistoryHistory

•• Nichols Review Nichols Review (March 2007) highlighted

– need to improve delivery of value

•• Lean PilotLean Pilot studiesstudies over last 3 years – M6 Extension Carlisle to Guards Mill

•• HA Lean Delivery TeamHA Lean Delivery Team established (April 2009)

– supported by Mott MacDonald

• Target of ££66m savings66m savings for HA in 2010/11 (April 2010)

Lean Delivery in HA Lean Delivery in HA –– 3 Year Plan3 Year Plan

Better Outcomes In Tougher TimesBetter Outcomes In Tougher Times

Derek Drysdale Derek Drysdale ––Division Director Lean ImprovementDivision Director Lean Improvement

Highways AgencyHighways Agency

Extracts from HA Presentation (2Extracts from HA Presentation (2ndnd November)November)

CSR OutcomesCSR Outcomes

• 2009 – White paper on roads programme for next six years

• In the CSR, Chancellor George Osborne revealed £83bn of cuts

• Transport funding will fall by 15% over the next 4 years

• Expenditure on new infrastructure down 11% over the period

– HA cash budget £2500m in 2011/12 declining to £2000m in each subsequent year

– Reduction of over 20% - a challenging budget!

– Emphasis on asset repair, life extension, renewal at lowest initial cost or short term cost

““Lean GenomeLean Genome”” (the blueprint of common sense)(the blueprint of common sense)

Strategy

Leadership

Process Focus

Collaborative Planning

Lean Daily Management

Customer value Visual Management

Process Control

5S Standardise

Off site build

People capability

HA Major ProjectsHA Major Projects

• M25 Bell Common Tunnel: Lean techniques contributed saved £5.8m

• M1 25 to 28: Collaborative Planning contributed to delivery ahead of programme

• M1 10 to 13: Greater productivity on sheet piling and sheet nailing

• A1 Dishforth: Daily asphalt laying rate increased from 1000t to 2000t

• M40 J15: 6-12 days saved on original 42 day surfacing programme

• A421: Increased blacktop production saved £2 a tonne for 40,000t

• A46: Earthworks efficiency activity creating a potential saving of up to £7.5m on the project

Knowledge TransferKnowledge Transfer

Lean practitioners develop a Knowledge Transfer Pack to capture lessons learned and ensure benefits can be applied to other schemes (Mott MacDonald developed the KTP methodology for the HA)




AgencyAgency



A46 A46 Newark to Widmerpool Newark to Widmerpool

Knowledge Transfer PackKnowledge Transfer Pack

30

Benefits

Low

High

Low

Extending earthworks season Earthworks 100% dry day output

Design Process

Earthworks CBM North

Minimum costs of CBM, Blacktop

Stats

Pavement Construction

HighEase of Implementation

Target early completion of Pavement Construction

3km earthworks platform

Background and Objectives Background and Objectives –– Project OptionsProject Options

Background and Objectives Background and Objectives –– DefinitionsDefinitions

Achieve maximum output in dry weather for earthworksAchieve maximum output in dry weather for earthworks

Deliverables:Deliverables:

•• Maximum achieved on any given dayMaximum achieved on any given day

•• Resource efficiencyResource efficiency

Success:Success:

•• CompletionCompletion

33

The current process was examined during High Level Process MappiThe current process was examined during High Level Process Mapping and was ng and was

not previously defined.not previously defined.

The Earthworks sub contractor (John Jones), operating with a The Earthworks sub contractor (John Jones), operating with a programme,programme,

resourced and planned the works with fluctuating resources as resourced and planned the works with fluctuating resources as they deemed they deemed

necessary. necessary. ““Trial and errorTrial and error”” (their words) and(their words) and conservation of resourceconservation of resource

(excavator, trucks etc) was the approach(excavator, trucks etc) was the approach

John Jones is operating on an Open Book contract using Target CoJohn Jones is operating on an Open Book contract using Target Costssts

Current Earthworks ProcessCurrent Earthworks Process

34

It was important to establish current productivity in order to measure any improvements. Working with the Team measurement took place on site of the Excavator utilisation over a working day and the Dumper Truck Run Time variation

Initially the Team were sceptical about meaningful variationInitially the Team were sceptical about meaningful variation

However Mott MacDonald’s finding in the Analyse stage identified significant variation

Earthworks Process ImplementationEarthworks Process Implementation

Excavator Utilisation

– Identified as a key indicator of utilisation and performance

–– Anecdotal evidenceAnecdotal evidence from the team on site suggested Excavator down time was “very low very low -- about 5%about 5%” (words from the contractor PD)

– However analysis showed excavators were idle much more than this


Loading

Time 96%

Loading

Time 96%

Down Time

4%

Down Time

4%

Down Time

24%

Down Time

24%

Loading

Time 76%

Loading

Time 76%

October 5October 5Earthworks Process ImplementationEarthworks Process Implementation

October 5October 5

Excavator Down Time 5 OctoberExcavator Down Time 5 October


Excavator KOM PC450 was engaged in Spreading for much of this observation period, however a significant portion of excavator down time was due to a lack of availability of trucks

Excavator KOM PC450 was engaged in Spreading for much of this observation period, however a significant portion of excavator down time was due to a lack of availability of trucks

October 12October 12Earthworks Process ImplementationEarthworks Process Implementation

Excavator Down Time 12 OctoberExcavator Down Time 12 October

Causes for DowntimeCauses for Downtime

•• The major cause for down time observed on the 12 October was ideThe major cause for down time observed on the 12 October was identified as ntified as

being insufficient Trucks for being insufficient Trucks for 22 ExcavatorsExcavators

•• No additional trucks were introduced to maintain the programmed No additional trucks were introduced to maintain the programmed work output work output

and thus Excavators were left idleand thus Excavators were left idle

This highlights the importance of ensuring the number of trucks on the site is sufficient

at all times

This highlights the importance of ensuring the number of trucks on the site is sufficient

at all times

October 12October 12Earthworks ProcessEarthworks Process ImplementationImplementation

On both full days of analysis, variable run times are experienced by all trucks observed

On both full days of analysis, variable run times are experienced by all trucks observed

Elements on the haul are effecting the run times of all trucks

Elements on the haul are effecting the run times of all trucks

Run Time October 5Run Time October 5 Run Time October 12Run Time October 12


We can see that the number of trucks did not always adequately cater to the Haul Length

We can see that the number of trucks did not always adequately cater to the Haul Length

Potential to add extra trucks to

balance haul length

Potential to add extra trucks to

balance haul length

Earthworks Process OptimisationEarthworks Process Optimisation

Excess Trucks sitting idleExcess Trucks sitting idle

The remaining amount of earthworks is 1.38M m3. If a similar regime of optimising the trucks was adopted the earthworks programme could potentially be shortened by 113 days. Using the same method of calculation the costs for the optimised teams would be:

Un-optimised Optimised

Days 416 303

Total Cost£2,462,289 £2,260,479

Potential saving of £201,809

equipment costsPlus

113 days

overhead costs

Potential saving of £201,809

equipment costsPlus

113 days

overhead costs

Earthworks Process Potential SavingsEarthworks Process Potential Savings

Fully optimised process (including excess trucks) has potential saving of £7,130,000




AgencyAgency

•• LeanLean Project Management in constructionProject Management in construction


Lean ToolsLean Tools

FMEA

Five Whys

Kaizen

Intervention

Chi Squared analysis

Cause and Effect Diagram

Affinity Diagrams

A3 Problem Solving and Reports

Pareto Chart

PDCA

Process Mapping

Process Review

SIPOC

Visual Management System

Voice of the Customer (VOC)

Some of the basic toolsSome of the basic tools

•• DefineDefine--MeasureMeasure--AnalyseAnalyse--ImproveImprove--ControlControl--Transfer (DMAICT)Transfer (DMAICT)

–– the improvement cycle that underpins Lean implementationthe improvement cycle that underpins Lean implementation

•• Blitz ImprovementBlitz Improvement

–– a tool of continuous improvementa tool of continuous improvement

•• The 8 wastesThe 8 wastes

–– the cornerstone of Lean implementationthe cornerstone of Lean implementation

•• 55’’ss

–– creating a productive and safe workplace, where abnormalities arcreating a productive and safe workplace, where abnormalities are made visible e made visible

and correctedand corrected

Some of the basic tools

•• Visual managementVisual management

–– simple communication of the state of the process (e.g. what needsimple communication of the state of the process (e.g. what needs to be done, s to be done,

how things are going)how things are going)

•• Standardisation Standardisation

–– doing things the same. Every time. In the least wasteful waydoing things the same. Every time. In the least wasteful way

•• TaktTakt TimeTime

–– the process the process ‘‘heartbeatheartbeat’’ to fir customersto fir customers’’ needneed

•• ‘‘PullPull’’ not not ‘‘pushpush’’

–– value to the customer (e.g. Releasing work only when value to the customer (e.g. Releasing work only when ‘‘pulledpulled’’ i.e. through i.e. through

demand)demand)

Visual Management SystemVisual Management System

Every team can create its own VMSEvery team can create its own VMS

–– The frequency of meetings is agreed by the teamThe frequency of meetings is agreed by the team

–– For individual projects, daily is often bestFor individual projects, daily is often best

–– Agree a frequency to start and change it as necessaryAgree a frequency to start and change it as necessary

4 elements4 elements

•• Primary Visual Display (PVD)Primary Visual Display (PVD)

•• Regular Team Meetings Regular Team Meetings

•• Action Sheet System Action Sheet System

•• Short Interval LeadershipShort Interval Leadership

Examples of Primary Visual DisplaysExamples of Primary Visual Displays

VMS VMS –– BenefitsBenefits

• Improves team communication

• Focuses on daily performance

• Encourages improvement ideas

• Captures small issues early and regularly

• Builds and embeds a continuous improvement culture

Collaborative PlanningCollaborative Planning

The Traditional Approach to PlanningThe Traditional Approach to Planning

The PlanThe Plan

•• Main Contractor/Planning dept does the planMain Contractor/Planning dept does the plan

•• Imposed on the contractorsImposed on the contractors

•• Contractors plan site work individually and Contractors plan site work individually and

independentlyindependently



On SiteOn Site

•• Contractors try and follow the Main Contractor planContractors try and follow the Main Contractor plan

•• But not always bought into achieving the planBut not always bought into achieving the plan

•• Penalised if they donPenalised if they don’’t perform to plant perform to plan


Project Management• Did we make a profit? – if not who needs toimprove?

• Did we finish on time? – if not who needs toimprove?

• What we will try and do better next time?

What are the results of this?What are the results of this?


The effect buffer on the PlanThe effect buffer on the Plan

Electrician 1st fix

Plumbing

Plastering

Painting 1st coat

1 2 3 4 5 6 7 8 9 10 11 12

2 days

3 days

1 day

3 days

1 day

Estimated Duration

Boarding

Electrician 2nd fix 1 day

Plan for 1 floor of the hotel construction project

Elevation

Plan

(each floor has

12 rooms)

Theoretical completion time if all buffer is moved to the end of the plan = 7¾ days or

17¾ days to complete all 6

floors

1½ days½

day

2 days1

day

¾day

¼

day

buffer

2 days1

day

¾day

¼

day

¾day

¼

day

Collaborative Planning ProcessCollaborative Planning Process

Feedback Loops-The measures indicate when something is going wrong- Any activity not achieved in the 1 week plan goes into next 1 week plan and 6 week plan - The 6 week plan updates the collaborative plan- The collaborative plan updates the agreed project programme

The effect buffer on the PlanThe effect buffer on the Plan

Electrician 1st fix

Plumbing

Plastering

Painting 1st coat

1 2 3 4 5 6 7 8 9 10 11 12

1½ days

2 days

¾ day

2 days

¾ day

Estimated Duration

Boarding

Elevation

Plan

(each floor has

12 rooms)

buffer

Electrician 2nd fix ¾ day

Plan for 1 floor of the hotel construction project

Theoretical completion time if all buffer is moved to the end of the plan = 7¾ days or

17¾ days to complete all 6

floors

1½ days

2 days

¾day

2 days

½day

1day

¼

day1

day

¼

day¼

day¾

day

¾day

Collaborative Planning Collaborative Planning –– ObjectivesObjectives

•• The team establish a collaborative programmeThe team establish a collaborative programme

•• The programme is stabilised and uncertainty removedThe programme is stabilised and uncertainty removed

•• Utilise the teamUtilise the team’’s skills and experiences skills and experience

•• Identify potential risks and opportunitiesIdentify potential risks and opportunities

•• Identify issues and common interface problems and collectively rIdentify issues and common interface problems and collectively resolve esolve

thesethese

•• Produce forward plans and identify mobilisation needsProduce forward plans and identify mobilisation needs

•• Increase predictability of activity and project completionIncrease predictability of activity and project completion

Detailed Project Plan

Trades

Designer

ArchitectSub-Contractor

Programme Planning in ActionProgramme Planning in Action

Implementing 5S in the WorkplaceImplementing 5S in the Workplace

The 5S ProcessThe 5S Process

StandardiseStandardise

SortSort

StraightenStraighten

Sweep upSweep up

SustainSustain

5S5S

What is needed for work? What is not needed?

“A place for everything and everything in its

place”

… and get rid of what is not needed

(waste)

Do things the same way with

the same equipment

Don’t stop! Make 5S a good habit

The 5Ss are an approximate translation from Japanese

Implementing 5S in the WorkplaceImplementing 5S in the Workplace

ImproveHow can we optimise improvements ?

AnalyseWhere and when do defects occur ?

MeasureWhat does the process look like ?How is the process performing today ?What are the primary causes of failure ?

DefineWhat is the process improvement opportunity ?What is the scope of the problem ?Who’s involved / affected ?

ControlWhat controls can be put in place to sustain gain ?

• Business Case/ PIP Team• Problem Statement / Objective• Primary / Secondary Metrics• Voice of the Customer (VOC)

• Process mapping• Cause and effect analysis• XY Matrix, FMEA• Data Collection• Capability Analysis

• Graphical data analysis• Statistical analysis• Correlation (X/Y)• DCOM

• Quick wins/ solutions• Simulation• Design of Experiments• Select best solutions

• Implementation/Control Plans• PBL tools to sustain gains• Establish Process Management System

The Six Sigma Process The Six Sigma Process –– DMAICDMAIC

The Ishikawa diagram (fishbone) is the brainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management. First used in the 1960’s

Cause and Effect Diagram (Fishbone Diagram)Cause and Effect Diagram (Fishbone Diagram)

Reduce submission review time

PEOPLE DOCUMENTS

No universal

documented procedure

too busy “doing” rather than recording '

different Agents, different quality plans

Not a KPI

Original due dates tight

Documents get lost

no standard copy to list

forget

sits in the in-trayMisunderstanding

Do not understand the shorthand

trying to be too succinct

Misunderstand intention of comments

Variable content

no set standards

projects vary

different types

Variable quality

lack of understanding

sloppy

Specialists do not know when documents are coming

decided by SW

save wasting people’s time

No common method of comments

Different reviewers

Delay in receiving documents

Different disciplines

Lack of dedicated resources

people not always available

Can not use people 100%

Lack of customer feedback

Do not know level of review

Because “review” is open ended need to find out what is important

PROCESSESCOMMUNICATION

6489Financial budget9De-scoping and re-scoping of

works8

Not compliant with standards

Unclear definition

6489Audit at end of implementation

9

Design deliverable

requirements not prescriptive

8

Lack of visibility of what the Contractor is

going to supply

Does not include detailed design

RPN

DET

Current Process Controls

OCC

Potential Causes of Failure (Xs)

SEV

Potential Failure Effects (Ys)

Potential Failure Modes (process

defects)

Failure Mode and Effects Analysis (FMEA)Failure Mode and Effects Analysis (FMEA)

Lean Project ManagementLean Project Management

David Butcher and Steve PearsonDavid Butcher and Steve Pearson

30% savings for highways sector

W e spend £2 billion a year on construction and maintenance of the network and believe that we can achieve

efficiency savings of 20-30%,” says Highways Agency divisional director for Lean improvement, Derek Drysdale. Lean is a process and product improvement tool which has been used in the manufacturing sector for the best part of 40 years. The Highways Agency has made Lean a requirement for its supply chain for all future work. Mott MacDonald is providing the know-how the Agency needs to deploy it nationwide. Mott MacDonald director Martin Perks says: “From top to bottom, the Agency’s supply chain must demonstrate that it is implementing Lean processes. This is an industry changing move.”

Mott MacDonald has worked with the Agency to develop its own in-house Lean capability and produce a strategy and tools to enable the take-up of Lean thinking across the supply chain.

WHaT iS lean?“Toyota and Boeing are among the best known exponents of Lean thinking, but it’s used by almost all of the top 1000 blue chip companies to drive effectiveness,” says Mott MacDonald project manager Steve Pearson. Simplistically, Lean involves studying all of the activities carried out during delivery of a product or service, improving those that add value and eliminating those that

We’re enabling the UK Highways Agency to realise efficiencies of nearly a third using a process improvement system known as Lean.

don’t. “Whether a car, a plane or a new section of highway, numerous processes are combined in producing the desired outcome. Each process has its own sub-processes. Lean techniques are used to look at the way every sub-process is performed. By identifying discontinuities and poorly co-ordinated or unproductive activities throughout the delivery team and supply chain we can eliminate waste and improve value,” Steve explains. prOvinG lean On uK HiGHWaYSUp to September 2010, Mott MacDonald-led reviews of six projects had identified £14 million of efficiency gains – contributing towards £30 million of savings across 40 Lean pilot projects. Studies included dualling of the A46 Newark to Widmerpool (right) and widening of the A1 Dishforth to Barton (over page), as well as construction of highway drainage and information gantries, winter gritting and salting, design and construction of standard highway structures, roadworks set-up, highway inspection, traffic management and customer care.

Derek says that the studies clearly indicate the cost benefits of implementing Lean management practices: “Experience suggests that every £1 invested in implementing Lean processes will yield, on average, at least £10 of benefits.” He is emphatic that Lean is not aimed at paring back suppliers’ profits – quite the reverse. “Working more effectively is to everybody’s advantage.”

HOW WE’RE aDDinG value

£10 benefit from every £1 invested in Lean

■ £220 million dualling of 28km of single carriageway

■ Construction start and completion: July 2009-summer 2012

■ Lean focus: dry weather earthworks

A 10 day study revealed that significant excavator working time was being lost because too few trucks were available for loading. Lean analysis showed that, over the study period alone, optimising truck movements would have enabled 128 extra ‘truck days’, moving 40,890cu.m more earth and saving nine days against programme. The cost of additional truck hire would have been outweighed by savings on excavator hire, delivering £20,000 net benefit. Of far greater significance, the benefit to the project of early earthworks completion would have been almost £680,000.

Applied to the remainder of the project, truck and excavator optimisation offered savings of over £7.5 million.

Productivity has been improved through better co-ordination between the main contractor and earthworks subcontractor. When the project started a fixed number of trucks and drivers was supplied. Trucks were subsequently matched with fluctuations in earthmoving demand, enabling maximum output.

As earthmoving operations advanced, increasing the length of the haul road, the number of trucks was steadily increased to account for the greater time taken to pick up a load, transport it to the dump site and return for another load. Account was also taken of delays due to plant crossings, mechanical breakdowns, maintenance of haul roads and haul road congestion, as well as time taken to clear stuck mud from the dump truck skip.

£600M potential annual savings to the Highways Agency

£7.5 mILLIOn sAVIng On thEA46 nEwARk tO wIDmERpOOL

6 Mott MacDonald www.mottmac.com 76 Mott MacDonald www.mottmac.com 7

United Kingdom

■ £318 million widening of 22km of dual carriageway into a three lane motorway

■ Construction start and completion: April 2009-April 2012

■ Lean focus: earthworks, road paving and communications duct installation

Earthworks: Disposal of topsoil was eliminated and the quantity of imported fill material was halved by looking project-wide at excavation and fill requirements and classifying excavated material more accurately. Efficiencies reduced the number of tipper truck journeys by 34,000 and saved £2.45 million on haulage and disposal.

Blacktop: The quantity of asphalt laid in each shift was increased by 8% by improving the

Lean involves studying all of the activities carried out during delivery of a product or service, improving those that add value and eliminating those that don’t.Martin perks, Mott MacDonald [email protected]

unique. It’s easier to see how you might perfect a process if you’re producing tens of thousands of cars. It’s less obvious in construction where every road you work on has its own topography and ground conditions, unpredictable weather and a different set of construction personnel – and even where adjacent sections of the same project can be significantly different.” What is common from project to project is generic activities – dry and wet weather earthworks, construction of foundations, retaining walls, culverts and bridges, drainage, lighting and communications.

“We want our suppliers to think about the process as well as the product and demonstrate steady improvement in the way they perform the activities involved in expanding, improving and maintaining the highway network,” Derek says. “And we require our suppliers to share their learning with the rest of the highways community, so that everybody drives better value for the public purse.”

To this end, Mott MacDonald has designed a methodology for recording and transferring

Lean knowledge. The firm has also assisted in developing what Derek calls a ‘Lean maturity assessment tool’. This requires suppliers to report the activities they have undertaken and show evidence of benefits delivered – both in terms of cashable savings and the growth of skills and knowledge in their workforce. Reporting provides a measure of how far they have progressed in implementing Lean and identifying scope for future improvements. “We reckon it will take about five years for Lean to be fully embedded and 10 to deliver maximum benefits. Other industries show that Lean’s an ongoing journey,” says Derek. “There’s continual scope for improving efficiency, effectiveness and value.”

Cracking down on the deficit, the UK government cut budgets across most departments in October 2010. Transport saw available capital fall by 11%. “Lean will play a key role in achieving better outcomes in these tougher times,” Martin says.

ClienT: HIGHWAYS AGENCY

supply of materials to the paving machine, while the number of workers in each paving gang was halved – the strength of each gang was initially matched to the paving machines’ theoretical output rather than their actual output, which was almost 50% lower. Productivity was increased thanks to better communications across the project delivery chain, reducing time lost waiting for deliveries. Improvements resulted in 17 days time saving and cost savings in excess of £600,000.

Communications: On the 16km Dishforth to Leeming section, 9m lengths of communications ductwork were installed instead of the normal 6m lengths. This yielded £15,000 of savings on connecting collars alone. With fewer connections, a 15% time saving was achieved on pressure testing the joints. As well as cost benefits, safety was improved by reducing worker exposure to traffic.

DrivinG eFFeCTiveneSS, CuTTinG WaSTe Most of the recommendations that come out of Lean analyses are not revolutionary. “But on most construction jobs people are immersed in the day-to-day activities of running the project and delivering on their contract. So it’s hard to make the time or see the benefits of stepping back and considering whether their operation is as effective as it could be,” Martin says. Derek adds that in the past the Highways Agency has been focused on issues such as quality, value for money, predictability of outturn and journey time reliability, not on process and product improvement, per se.

Many in the construction sector initially struggle to see how Lean will work for them, Martin adds. “In manufacturing you have a controlled environment with a consistent supply chain – it’s relatively easy to continually refine the production process. By contrast, each construction project involves setting up, running and then decommissioning what is effectively a business, all in the space of a few years. And the majority of construction projects are

DiD YOu KnOW…as well as applying lean on construction projects, we’re working with customers to achieve lean efficiencies in the banking and financial services, waste management, and central and local government sectors.

£14M of efficiencies achieved across six pilot projects

£3 MilliOn SavinG On THea1 DiSHFOrTH TO BarTOn

8 Mott MacDonald www.mottmac.com 98 Mott MacDonald www.mottmac.com 9

United Kingdom