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Introduction to Lean ConceptsSeptember 14, 2010
Introduction to Lean Concepts
12/14/2010
Agenda
I. Lean Construction Concepts
II. DPR Case Study
III. What do you do Tomorrow Morning?
Why Lean?
In less than 6 months, John J. Kirlin is seeing the benefits.
(Blue is weekly planning, Red is standard)
Why Lean?
Baker Concrete’s Successes:— Better Safety.
— Better production.
— Less variance in production.
— Happier people.
— At Thyssen Krupp Mill: Two identical lines, one lean, one not:
� Non-Lean line – 12 months, 500 men.
� Lean line – 7 months, 300 men.
� 50,000 manhours less.
� $700,000 less in equipment.
� $400,000 less in forms.
Why Lean?
Rodger’s Experience at CPCC
• Those engaging in LPM saw savings (5 to 7%).
• Project contractors work collaboratively in a team atmosphere.
Why Lean? DPR – Sutter Medical Center Castro Valley
1
Schedule• 7 month acceleration due to
collaborative work with OSHPD allowing phased design approval
$30 million savings from :• Removing bent plate at
exterior edge of slab and replacing w/light gauge metal
• Using full height posts in lieu of traditional kicker wall braces
• Changing wall spec from full height walls to partial height walls while maintaining design intent
• Using “Composite Architectural Precast Panels” instead of standard precast panels to reduce steel tonnage
Lean Construction Concepts
Understanding the Current State
Traditional Construction Project Structure
Architect
Civil
StructuralMechanical
Electrical
Plumbing
LandscapeElevatorsInteriorParking
CM/GC
Site
Concrete Mechanical
Electrical
Plumbing
LandscapeFraming
Floor CoverPainting
Owner
Geotech
Materials
Food ServiceTraffic
Medical Equip
BirthingSurgery
PharmacyAdmin
ER
Operations
Diagnostics
McDonough Holland & Allen PCAttorneys At Law | www.mhalaw.com
Traditional Approach
CO
MM
ON
UN
DE
RS
TAN
DIN
G
CM/GC Hired
Major Trades Hired
Pre-Construction Services
Architect Hired
Engineers Hired
≤100%
SD DD CD
Construction
Level of Common understanding
TimeMcDonough Holland & Allen PCAttorneys At Law | www.mhalaw.com
Current Practice faces many Problems
• CPM Scheduling Methods do not produce predictable workflows. Push scheduling requires no commitments from trade contractors.
• Localized productivity improvements lead to even more unreliable workflow, reducing project performance.
• Any value creation and improvement efforts are local –collaboration and learning are limited.
Current practice encourages participants to perform in their silos, and does not align them
toward maximizing project value.
• Organization: How is the project participant control structure organized?
• Commercial Terms: You get the behavior you contract for – what is the contractual relationship?
• Operating System: How you operate and plan dictates how the project participants behave.
Domains of Project Delivery
Traditional Project Delivery Practice
Critical Path Method Scheduling
© Lean Construction Institute, 2010
Typical construction agreements are top down agreements, which presume that the Owner will receive the minimum the contractor and designer can get by with, and drive territorial and counterproductive behavior.
© Lean Construction InstituteUsed with permission
Sutter Health’s Big Ideas
The Three Opportunities of Lean Construction
By looking at construction from a lean perspective, we create three connected opportunities:
How do Lean Construction Methods Answer this?
What is Lean?
Lean Production: It is a production practice that considers the expenditure of resources for the creation of value for the end customer. The goal is to create value and eliminate waste.
Lean is less WASTE.
Key Definitions:
Value is defined in terms of the end-user. This is not cost (in fact you are trying to increase value while decreasing cost).
Waste is defined by anything that does not contribute to value in the end user’s eyes. Toyota defines 8 forms of waste, to which we add two more.
The Many Forms of Waste
1. Under-Utilized People - not tapping into people's education, skills, experience, knowledge, creativity, etc.
2. Waiting - waiting for man, machine, materials, information, (waiting on someone to complete layout, RFIs, etc.)
3. Defects – any form of rework or anything that is thrown out (in the office or on the jobsite).
4. Overproduction - making more than the next process needs (or making it early). Eg. Building all base cabinets before they are needed, or completing all walls on a floor before MEP is ready
5. Motion - any movement that does not add value to your product or service. Including trucks getting lost on the jobsite, or going to wrong areas.
6. Inventory - anything in excess that is not being worked on currently (bone pile, excess wood for forms, etc.)
7. Transportation - moving people, materials and information around the organization. Especially if you move it twice.
8. Over-processing - additional effort that adds no value from the customer's viewpoint.
9. Making Do – Not addressing the problems as you see them.
10. Not Speaking and Not Listening – Not paying attention to others as they address problems and not speaking out.
Do we really believe the accuracy of our CPM schedu les?
[Liu and Ballard, 2008]
LPS™ shown to increase PPC
Productivity positively correlated with PPC
Ballard’s PhD research (2000)Approx 450 weeks’ worth of data
Weekly PPC
Contractor 1 33%
Contractor 2 52%
Contractor 3 61%
Contractor 4 70%
Contractor 5 64%
Contractor 6 57%
Contractor 7 45%
Average 54%
Developed Last Planner System (LPS) ™
Impeccble Coordination
From JJK/NCSU presentation to LCI (13 Aug 10)
Set Milestones, Set Strategy,
Identify Long Lead Items
Specify handoffs, Indentify
Operational Conflicts
Make Ready and Launch
replanning when needed.
Promise
Measure PPC and Act on
Reasons for Failure
Master SchedulingMilestones
Phase “Pull” Planning
Make Work Ready Planning
Weekly Work Planning
Learning
Should
Can
Will
Did
Last Planner™ Method 5 Connected Conversations
"CPM is the tool for you if you believe what you know is more important than what you can learn, and if you prefer being ‘In Charge’ to getting the project done, and if out-of-date plans are more useful than a team prepared for action.“ – Greg Howell
Last Planner vs. CPM SchedulingThe primary function of scheduling and planning is optimizing production.
Last Planner™ Method
Five Connected Conversations
Master SchedulingMilestones
Phase “Pull” Planning
Make Work Ready Planning
Weekly Work Planning(by Foreman and Supts)
Learning
Traditional CPM Scheduling
(Command and Control)
Master Schedule Development(Consultant)
Look Ahead and Resource Scheduling
Monthly Updates
Con
stan
t
Col
labo
ratio
n
Push
Push
CM
Driv
en
Wee
kly
Building the Network of Commitments
Things to remember about commitments:
• Are conditions of satisfaction clear to both parties?
• Am I competent to perform this, or do I have access to this competence and other wherewithal?
• Have I estimated the amount of effort and time required to deliver on this promise?
• Do I have the capacity (resources) available and allocated for this effort?
• Am I NOT having a private conversation with myself hoping someone else breaks their promise so I won’t have to really keep my promise?
• Will I be responsible and clean up any mess caused by my failure to deliver as promised?
Last Planner at CMC Hanover Square
Last Planner at CMC Hanover Square
Last Planner System – Weekly Work Plan (WWP)
• WWP – Submitted by each onsite subcontractor supt/foreman each Tuesday
Impeccable Coordination
Improve your reliability and remove waste.
Last Planner System – Thursday Meeting Agenda
• Sub Agenda – Focus is on future work not what happened this week.
The Theory – The bulk of this meeting has the sub supt/foreman looking at and thinking about schedule activities 2-6 weeks out, not about what went wrong this week.
The Reality – It Works! Sub involvement and coordination in the meeting has gone way up. The schedule is changing more than I hoped, but it is reflecting how we can really build the building. Meetings have been 1:15 to 1:30 long, but productive.
I. General Information/Logistics 10 min.A. Safety & Site Clean Up B. Site Logistics – Work Hours & Access RoadsC. LEED Considerations
II. Review of 6-Week Look Ahead Schedule – Identify Cons traints 30 min.A. Review Week of October 18th 10 minB. Review Week of October 11th 10 minC. Review Week of September 27th 10 min
III. Review of this Week’s Performance (PPC-VAR) 5 min.
IV. Preparation of WWP – Week of 20 September Coordinati on 30 min.A. WWP Due to RodgersRussell by 2:00 pm on Tuesday
V. Open Discussion of Other Issues 5 min.
END OF MEETING
Learning
Lean is about Continuous Improvement: Don’t accept that failures “just happen”. Look for trends and root causes so you can fix them.
Working around problems or planning buffer time into work is a waste – don’t accept it!
Use Root Cause techniques:— Five Why Analysis.
— Fish Bone Analysis.
— Pareto Charts
Be Tough on the Issue, not on the People.
Plan
Act
Check
Do
Projects as Collective Enterprises.
Owner
CM / GC
Civil
Structural
Mechanical
Electrical
Plumbing
Site
Steel
Mechanical
Electrical
Plumbing
Concrete
Landscape
Landscape
OtherConcrete
IPD Team
Core Group
A New Way to Build:
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A / E
Integrated Project Delivery
Time
CO
MM
ON
UN
DE
RS
TAN
DIN
G
CM/GC Hired
SD DD CD
Construction
Architect Hired
Engineers Hired
100%
Major Trades Hired
Pre-Construction Services
Level of Common understanding
© William Lichtig 2010 Used with permission
Putting the Pieces Together
© Lean Construction Institute & Baker Concrete, 2010
The New Common Sense
CPM - Activities Transactional Command & Control
Lean - Flow Relational Collaborative
Operating System Commercial Terms Organization
Optimizing the Project, not the Parts
Sutter Medical Center Castro Valley
• 130 Bed Hospital
• 223,000 SF
• $320 M Budget
• 7 Stories including
Basement
• Demo and
replacement
Lean and Integrated Project Delivery (IPD)
• IPD – Designers and builders working closely together to deliver a complete design that provides the most value for the owner
• IFOA – Integrated Form of Agreement was utilized on this project
• A collection of behaviors
aligned for mutual benefit
• Team success tied to
project success
• Shared financial risk
and reward
• Early involvement of key
project stakeholders
• Value-based decision
making (Target Value
Design)
IPD the SMCCV WayAlignment / Integration / Collaboration
IPD – SMCCV Project Goals
•Build high quality healthcare facility
•Meet project program
•Deliver facility 30% faster
•Do NOT exceed $320 M Target Cost
Team Development Challenges & Evolution
•Co-location of team members (The Big Room)
•Use of collaboration technologies
•BIM integration
•Process planning / mapping
•Commitment tracking and execution
•Transparency of team goals
Target Value Design Step-by-Step
•Assemble IPD team
•Validate allowable cost
•Go / No Go decision
•Form TVD clusters
•Set Target Cost
•Design to Target Cost
•Construct at or below Target Cost
•Share savings
Target Value Design Clusters
•Cardinal Rule: “The target cost of a facility can never be exceeded.”
•Teams composed of A/Es and contractors
•Each designs to a target cost
•Targets adjusted up and down to maintain project allowable cost
Value Stream Mapping (VSM)
THE BIG ROOM
CLUSTER REPORTS
Communicating TVD Targets
BIM – In Support of IPD Team Goals
BIM – In Support of IPD Team Goals
• MEP Coordination
• Model Based Estimating
• Scheduling
• Review & Prefabrication
• Field Support
• Supply Chain Management
• Design Review
• Constructability Reviews
MEP Coordination
Prefabrication: Drywall and Backing
LEAN – During Construction
• The Last Planner System ™
• Planning using the Pull Method
• Daily check-ins
• Just-In-Time delivery using “Materials
Manager” based program
• Visual tools and more visual tools
IPD – Team Benefits in Design/Construction
• Goals aligned for all major team members
• Increased collaboration
• Flexible support of other team members
• Fewer design hours than traditional processes
• Constant push to do things better
• Accountability among team members
• We all succeed together (failure’s not an option)
IPD - Challenges
• Consensus of 10 parties
• Managing Budget
• Learning to operate in new structure
• No Drawings! (Most of the Time)
• Learning to Trust
• Integration of Non-IFOA team members
IPD – Lessons Learned
• Learning to break the old ways of design
• Communication is key
• Some rework as part of iterative solution is OK
• Plan, replan, and plan again
• No such thing as a small change
Sutter Medical Center Castro Valley
Current Progress in Castro Valley
• Precast installation 95% complete• Glazing complete on two faces• Metal panel complete on one face• Building on schedule to be watertight by March 2011
Sutter Medical Center Castro Valley
Sutter Medical Center Castro Valley
Lean Construction Institute
Linked in Groups
Lean Construction Institute
LCI Carolinas
www.leanconstruction.org
Lean Reading List
12/14/2010
1
Basic Lean Canon:• The Toyota Way – Jeffrey Liker• The Goal – Eliyahu Goldratt• The High Velocity Edge – Stephen Spear• Lean Thinking – Womack
Good/Recommended Readings:• The Nun and the Bureaucrat - Savary and Crawford-Mason• Learning to See – Rother/Shook• Getting the Right Things Done – Pascal Dennis• Managing to Learn – Shook• The Lean Manager – Balle/Balle• Drive: The Surprising Truth About What Motivates Us - Daniel H. Pink• The Checklist Manifesto - Atul Gawande• Our Iceberg is Melting - Kotter/Rathgeber
Innovative Thinking:• Blink – Malcom Gladwell• Tipping Point – Malcolm Gladwell• Outliers – Malcolm Gladwell• Predictably Irrational – Dan Ariely
Lean Websites and Links
12/14/2010
1
Some good Websites for Lean and Innovative Thinking :
• www.gemba.com – Gemba Research (Lean thinkers)
• www.lean.org – Lean Enterprise Institute
• www.ihi.org – Institute for Healthcare Improvement
• www.asq.org - The American Institute for Quality
• www.ted.com - Audio and Video of the Presentations from the TED Conference
Takeaways? Questions?
“You see things; and you say, 'Why?' But I dream things that never were; and I say, ‘Why not?’” - George Bernard
Shaw, "Back to Methuselah"
“Tell me and I forget. Teach me and I remember. Involve me and I learn.” – Ben Franklin.
DeltaPlus
Using Plus/Delta to Learn and Improve
Supplemental Information
12/14/20101