4th Lean Construction Institute Academic Forumtariq/Forum_4th.pdf4th Lean Construction Institute Academic Forum Atlanta, Georgia 2/14/2004 Tariq S. Abdelhamid, Ph.D. Assistant Professor

T. Abdelhamid - LCIAF 20041

4th Lean Construction InstituteAcademic Forum

Atlanta, Georgia2/14/2004

Tariq S. Abdelhamid, Ph.D.Assistant Professor

http://www.leanconstruction.org/

T. Abdelhamid - LCIAF 2004 3

Outline

LCIAF history and mission

LC Teaching

NSF-sponsored LC workshops


Lean Construction Institute Academic Forum

LCIAF Established(U of Colorado)

LCIAF 3rd

meeting (MSU)LCIAF 2nd

meeting (ASU)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2001 2002

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

LCIAF 4thmeeting (MSU)

2003 2004


LCIAF Goal

The Academic Forum’s primary goal is to further and encourage serious considerations of lean construction education and training for professionals entering the architectural / engineering / construction industry (AEC).

Tariq Abdelhamid - MSU


LCIAF Mission StatementThe Academic Forum’s mission is to promulgate and enhance the understanding and appreciation of lean construction thinking in institutions of higher education and advocate the discovery and exchange of knowledge concerning the concepts, principles, and methods of lean construction systems.

The Academic Forum will be the venue of choice for academics to learn about the Lean Construction Institute’s research and implementation efforts and for sharing lean construction pedagogical ideas.

No ‘mumbo jumbo’ language:Spread the LC message, get academics on board to teach it in college/university classrooms and conduct research.



Academic Forum Strategic PrioritiesIn support of its mission LCIAF will:

Hold seminars, workshops, and symposia to promote lean construction integration in undergraduate and graduate curricula in architecture, civil engineering, and construction management programs.

Solicit involvement from public funding agencies in conducting research and educational programs

Providing a forum for students pursing masters or PhD degrees in Lean Construction to report, discuss and exchange ideas and experiences regarding their ongoing research.

Reward high achievement in research and teaching through an appropriate program of recognition



LC Teaching – at MSU

– Traditional CM process

– Productivity improvement techniques (work sampling)

– Design of construction operations using simulation

– The history and evolution of production paradigms

– The principles of lean construction production (Production Control and Work Structuring)

– Lean construction enabling tools

Tariq Abdelhamid ([email protected]); Construction Management Program, Michigan State University

3-credit hours graduate course titled: ‘Lean Construction Principles and Methods’ ; course covers:

mailto:[email protected]



Students typically don’t have a problem learning new material, but it is more difficult to unlearn what they already know.

It is very important to assess students’ understanding of the traditional CM process and correct any misperceptions.

The students should be allowed to discover problems with current CM practices through discussions of pertinent reading material as well as case studies and instructor own experiences. This will make them more receptive to the lean construction ideas.

Tariq Abdelhamid ([email protected]); Construction Management Program, Michigan State University




Games / Case Studies/Software

– Collapse at 2000 Commonwealth• Email [email protected] for case

– Delta Design (cross-functional design teams)

• Contact Louis L. Bucciarelli from MIT ([email protected] )

– Dice Game (variability impact on workflow)• Contact Greg Howell at LCI ([email protected])

– Paper-based Airplane Game (one-piece mfg vs batch systems)• Email [email protected] for case

– EZSTROBE (simulation software)• Download from Julio Martinez’s website ( http://strobos.cee.vt.edu/ )




http://strobos.cee.vt.edu/


Waste

Construction as Usual

Project Management(CPM and Contracts)

CustomerSatisfaction

•ProductivityImprovement

(work sampling;computer simulation;

safety)

Improvement Initiatives

Waste

•Value-engineering•Design-build•Partnering

•TQM•Constructability

•Safety

This Course

This Course


This Course

Waste

Lean Construction


Project Management

•Flow and Value MgmtLean DesignLean SupplyLean AssemblyWork StructuringProduction Control

&

This Course



Conventional Cost principle

ProfitProfit

ProfitProfitPrice to Sell

Cost to Produce

1

2

3Cost + Profit = PriceCost + Profit = Price

1

2

3

Determining cost (direct/indirect) then adding profit diverts attention from the fact that costs should be reduces and not profit when cost of material/labor/equipment increases.

Kentucky Center for Experiential Education 1998 / Shingo 1989 (adapted)



Time – Cost TradeoffsC

OST

($)

Direct Cost

Indirect Cost

Total Cost

TMMinimum Total Cost

Minimum Direct Cost

Min

imum

Dur

atio

nCE

T/C guides planning/control

DURATION



Quality – Cost Tradeoffs

CO

ST ($

)

Quality Control &Correction Costs

Construction Cost

Total Cost

Minimum Total Cost

Q/C guides planning/control

Increasing Quality of Conformance



Origins of Time –Cost Tradeoff

Quantity (Lot Size)

CO

ST ($

)

Processing/Setup Costs

Carrying Cost

Total Cost

Minimum Total Cost

The roots of T/C , Q/C tradeoffs can be found in inventory management literature as far back as the ’20s. (Compare to graph on previous 2 pages!)

EOQ



Management Levels in Construction

OrganizationalOrganizational

ProjectProject

ActivityActivity

Company structure; Multiple project attributes

Project breakdown according to contract, specs , dwgs; cost; time; resource control

Activity status against budgeted cost/time; resources use

Today, CM focuses on this box!!!

OperationProcess

Work Task

OperationProcess

Work Task

Focus on day-to-day functions. Choice of construction methods. Decisions on activity sequencing. Management of trade interactions)

Adapted from Halpin and Woodhead (2000)


Estimating and DilbertLC Teaching – at MSU


Scheduling and DilbertLC Teaching – at MSU



Construction Project Management

The relation in this curve clearly supports the need to have collaboration among project participants early on in the project.

Why haven’t we acted on this before?

Lean construction advocates the creation of cross functional teams to consider constructability and maintainability early on.

Ahuja et al (1994)


Common Practice: Ignoring Waste!LC Teaching – at MSU

Cycle Time = Processing + Handling + Inspection + WaitIn construction:

– Focus only on reducing Processing (conversion) time using technology, equipment, automation, and to some extent modularization.

– Disregard Handling + Inspection + Wait (waste) component [part of doing the business…Easiest escape-goat is “uncertainty”]

Activity

ABCDEFGHIJKLMNOPQ

95-99% Handling, Inspections, and Wait; Non-Essential;

Waste

1-5% Processing (Conversion); Value adding


Current Project Planning!!

(Ballard 2000)

PLANNING THE WORKINFORMATION

PROJECT OBJECTIVES

SHOULD

•The SHOULDs are placed on a timeline; what we eventually call a CPM SCHEDULE (created with

minimum team input; overlooks prevailing conditions on site; assumes activities are independent entities)


Current Production Planning/Control??

Production is viewed only as a TRANSFORMATION of inputs to outputs

SHOULD

EXECUTING THE PLANRESOURCES DID

(Ballard 2000)

Current project control focuses only on should vs. did ; Develop recovery plans; Hope project gets on track;

Deviation-based control

T. Abdelhamid - LCIAF 2004 23(Adrian & Adrian 1995)



Current State

Projects seldom finish on time/budget/qualityFar too many claims!!!

We ignore value to the customer (Get involved too late)We only manage the project; ignoring productionWe use deviation-based controlWe focus on local productivity not system throughput improvement

Our hit-miss ratio is very low (high input-low output systems)We manage a non-linear dynamic process as if it is linear static one!!!



Lean Productionis a production philosophy which shortens the time line between the customer order and the product shipment by eliminating waste and maximizing value to the customer.

CustomerOrder

Waste ProductShipment

Time

CustomerOrder

ProductShipment

Time (Shorter)

Business as Usual

Waste

Lean Production

Kentucky Center for Experiential Education 1998 / Shingo 1989 (adapted)



Why “Lean”?Compared to conventional manufacturing principles, products manufactured using lean principles have required significantly less resources to produce and have resulted in the following (Technology Century 10/2001):

1. Productivity gains of 300 to 400%.2. Labor productivity increased an average of 25% a year.3. Defect rates reduced from more than 2000 to less than 50

parts per million (PPM) and in many to less than 10 PPM.4. Cost of quality cut by over 60%.5. Work-in-process inventory slashed by more than 80%.6. Revenue per 1000 square feet of factory space was raised

350 %.


What type of production is construction?LC Teaching – at MSU

Construction is a project-based production system

Fixed-position manufacturing (whole assembled from parts; workers complete processes on a “stationary” product)

Final product is “rooted” in place (uncertainties and customer involvement)

Directives- Driven

Ballard and Howell (1997)Howell and Ballard (1998)



What is “LEAN” Construction?

LC is managing construction using:– Activity Management (CM practices; CPM and Contracts)– Flow Management

• Ensure reliable workflow (Remove Waste)– Design product and process together using cross-functional team– Shift design responsibilities to suppliers– Reduce inventories (pull material to site; concrete)– Give workers the right to say “No” to things they CAN’T do– Conformance-based control– Standardize and industrialize wherever possible

– Value Management» Understand and challenge customer requirements

©Lean Construction Institute, 2001 (adapted)


Who is doing it

Owners: Intel, Ford, Solutia, Pentagon Renovation, Rice University, BAA

Designers: IDC, Neenan, Burt Hill Kosar Rittelmann, NIRAS, Albert Kahn

Constructors: Boldt, Kinetics, Southland Industries, Neenan, Linbeck, DPR, EMCOR–Gowan,Trautman & Shreve, Marelich, Fluor/Ames/Kramer, Walbridge-Aldinger, Integrated Project Delivery, Simpson Mechanical, Graycor, Frank Messer, NIRAS/MTHS

Lean Construction Institutevisit http://www.leanconstruction.org– Seminars and workshops on LC– Contributing members are privy to research projects conducted by the

institute


LC Teaching and Research

Universities teaching and performing research in Lean Construction:USA

UC-BerkeleyMSUUniversity of FloridaUniversity of Colorado –BoulderVirginia TechArizona State UniversitySan Diego State University

Finland - VTT Technical Research CentreDenmarkBrazil - Federal University of Rio Grande do SulChile – Catholic University of Chile, SantiagoEngland - University of Birmingham / University of NorthumbriaTechnion - Israel Institute of TechnologyAustralia



Lean Non-Cost principle

Some ProfitSome ProfitBigger ProfitBigger Profit

Price to Sell

Cost to Produce

1

2

3

1

2

3

Price - Cost = ProfitPrice - Cost = Profit

Only way to increase profits is to reduce costs. Hence, the focus on work flow (waste removal and variability reduction)

Kentucky Center for Experiential Education 1998 / Shingo 1989



7 Forms of Waste

Typesof

Waste

CORRECTION

WAITING

PROCESSING

MOTION

INVENTORY CONVEYANCE

OVERPRODUCTION

Repair orRework Any wasted motion

to pick up parts or stack parts. Also wasted walking

Wasted effort to transportmaterials, parts, or finished goods into or out of storage, or between processes.

Producing morethan is needed before it is needed

Maintaining excessinventory of raw mat’ls,parts in process, orfinished goods.

Doing more work thanis necessary

Any non-work timewaiting for tools, supplies, parts, etc..

Kentucky Center for Experiential Education 1998 / Shingo 1989

Add to this list any other factors pertinent to your company or industry….The concept is what matters…

Anywhere work is performed, waste is being generated and must be removed.



Finding Waste using Value Stream Mapping

Mason placing the glass blocks

VSM identifies all steps required to transform inputs to outputs. Duration of process steps are recorded as well as time delay. This will will identify value added time vs. non-valued added time.

Create Value MapIdentify opportunities for improvementRestructure processDevelop work plan to implement new processDefine performance metricsAnalyse cost savings

Walbridge Aldinger improved billing and progress payment process accuracy using VSM (went from 43% to below 5% problems in billing).

Rother, M. and Shook, J. (1998). Learning to See: Value Stream Mapping to Create Value and Eliminate Muda. v.1.1, Oct., The Lean Enterprise Inst., Brookline, Mass.



Lean Production is not ‘just’ JIT

JIT stand for Just-In-Time production, delivery, etc.IT DOES NOT MEAN ZERO-STOCK PRODUCTIONA method to decrease inventory on hand and WIP which leads to waste reduction…….



Waste, WIP & Inventory(Hopp and Spearman 2000)

“Transformation” Production(CRAFT and MASS)

Production Problems

Inventory Levels

Work-In-Process

River

High inventory levels mask production problems.



Waste, WIP & Inventory(Hopp and Spearman 2000)

Lean Production

Fewer Production Problems

Lower Inventory

Levels

Work In Process

River

As inventory levels are decreased, production problems are encountered and dealt with.



Visual Site (Factory): Another Tool

“Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.”

5-S– 1S Sift and Sort (Organize)– 2S Stabilize (Orderliness)– 3S Shine (Cleanliness)– 4S Standardize (Adherence)– 5S Sustain (Self-discipline)

Kentucky Center for Experiential Education 1998





Standardized Work LC Teaching – at MSU

Captures best practicesPosted at the work stationVisual aidReference document– work sequence– job layout– time elements– safety

Developed with operatorsBasis for Continuous Improvement




Last Planner System of Production Planning and Control

Last Planner is the final person who gives the assignment to crew to actually perform the work…

The last planner system is a production control and workflow system designed to:

Empower front-line personnel to make decision about what work to commit to; Shielding; PPC= production system variability

Improve workflow by ensuring that future work is READY !! Look-ahead process: a pull process!!!


Information

WILL

Production DID

Planning the Work

ProjectObjectives

CanThe Last

Planner Phase II[work we KNOW

can be done

SHOULD

Inputs

The Last Planner System

The Last Planner System

The Last Planner Phase I[work we THINK

can be done]

CANWILL

SHOULD

Should vs. Did


PPC =DIDs÷WILLS

©Lean Construction Institute, 2001, (adapted)


Examples of LC TeachingGlenn Ballard ([email protected]), Engineering and Project Management

Program; Department Of Civil Engineering; UC- Berkeley

•CE290M Improving Performance in Engineering Driven Organizations.

•Catalog Description: Students will understand competing theories of management, and alternative approaches to integrating work execution and improvement. The focus will be on engineering-driven organizations and sectors, such as electronics, the automotive industry and the engineering/construction industries.

•Course Objective: Students will understand lean construction concepts and techniques of production management, the potential for and obstacles to improving performance, what data provokes and supports positive change, how to collect that data, and how to use it.

•Outline and reading material available


Examples of LC TeachingMarton Marosszeky ([email protected] ) ; University Of New South Wales,

School Of Civil And Environmental Engineering

– Project Management Tools & Skills – full semester course - graduate

Looks at the construction process at the project, supply chain and industry levels; Study actual projects and supply chain operations as case studies and examine computer-based technology for supply chain integration.

Major topics include the Toyota Production System and its potential in construction, (lean construction principles) process risk management, supplier management, quality and productivity improvement, real time information systems, work restructuring, and supply chain innovation.

Lecture outline and readings available.


Examples of LC [email protected] Ford - (Texas A&M university – Civil

Engineering)

•Present Lean as a general concept to facilitate transfer across applications.

•Describe construction as a service supply chain and then discussmanagement approaches, including traditional push, which opens the door to describe pull as an alternative.

• Discuss size of inventories and the opportunity to reduce thesecosts by controlling inventories and adjusting production rates.

Transparent models of construction systems are used to demonstrate the conventional versus lea-based thinking.

“ I do not explicitly call these things "Lean", but could and would if I had the materials to facilitate that.”



Examples of LC [email protected] Johansen ( ); School of the Built Environment;

University of Northumbria at Newcastle

•"Lean" is a headline issue for the management of construction projects within the UK (Covered within courses of other titles)

•Undergraduate (seniors):•General introduction and Last Planner as a focus for improving construction planning. Accounts for around 30% of the contact time of a senior undergrad ‘construction management’ course•Lean Design issues within a module called "Managing the Design Process" which mainly looks at Work Structuring, Set and Point based design with reading and discussion of few IGLC/LCI papers - about 20% of the contact time.

• Post grad:•“Project Management” course that covers PMI/PMBOK; stealthfully change focus to "Producing the Project”; Lean intro; Last Planner, Linguistic Action, Value Streaming and Supply Chain Management, design management – 35% of the module.



Examples of LC TeachingFlávio A. Picchi ([email protected]); University of Campinas and Lean Construction

Institute - Brazil

•Lean Construction for graduate students (45 hours)

•General lean principles while mapping to construction

•Lean in construction using IGLC papers (flow, design, job site, supply, maintenance).

• At the end of the course, students present seminars, with cases or theoretical discussions.


Examples of LC TeachingRafael Sacks ([email protected]); Structural Engineering and Construction Management

Unit; Faculty of Civil and Environmental Engineering; Technion - Israel Institute of Technology

•Grad course on CM with 4 to 5 weeks on lean construction.

•Construction as flow of goods and services vs a collection of distinct activities

•Push vs pull flow control systems

•The mechanisms to monitor/control flow in construction vs Mfg

•Impact of variability and unreliability

•Identifying waste in systems

•Lean thinking through the full project life-cycle, with special emphasis ondesign

•Games of various kinds are also very effective in teaching the concepts.•Case studies that show practical implementations


Lean Construction ResourcesMaterials for teaching as well as the latest research in LC:

Lean Construction Institute(http://www.leanconstruction.org/)

International Group For Lean Construction(http://cic.vtt.fi/lean/index.htm)

Lean Construction Network(http://www.leancon-net.com/)

And Soon;

Lean Construction Journal(http://www.msu.edu/user/tabdelha/LCJ_RFP.htm)


Lean Construction Higher-Education Workshops

National Science FoundationDirectorate For Education And Human ResourcesDivision of Undergraduate EducationCourse, Curriculum, and Laboratory Improvement (CCLI)

The CCLI Program seeks to improve the quality of science, technology, engineering, and mathematics (STEM) education for all students, based on research concerning the needs and opportunities that exist and effective ways to address them.

Targets activities affecting learning environments, course content, curriculums, and educational practices, with the aim of contributing to the relevant research base.

Proposals to improve undergraduate STEM education in a broad spectrum of institutions, including 2-year colleges, 4-year colleges, and universities. Single institution, a collaborative effort among several institutions, or a collaboration with business and industry partners.

(NSF website; accessed Jan 2004)



The following CCLI Program are relevant to LCIAF mission:

Educational Materials Development (CCLI-EMD)Produce innovative materials that incorporate effective educational practices to improve student learning of STEM. Projects to develop textbooks, software, or laboratory materials for commercial distribution are appropriate. Two types of EMD projects will be supported: (1) those that intend to demonstrate the scientific and educational feasibility of an idea—a "proof of concept" or prototype and (2) those that are based on prior experience with a prototype that intend to fully develop and test the product or practice.




The following CCLI Program are relevant to LCIAF mission:

National Dissemination (CCLI-ND)projects are expected to provide faculty with professional development opportunities to enable them to introduce new content into undergraduate courses and laboratories and to explore effective educational practices to improve the effectiveness of their teaching. Projects should be designed to offer workshops, short courses, or similar activities on a national scale in single or multiple disciplines.



Documents

4th Lean Construction Institute Academic Forumtariq/Forum_4th.pdf4th Lean Construction Institute Academic Forum Atlanta, Georgia 2/14/2004 Tariq S. Abdelhamid, Ph.D. Assistant Professor