BUSINESS EDUCATION COURSE 2016 COLLABORATION …...Collaboration Collaboration is where individuals of the project team regardless of discipline shares information directly with another

BUSINESS EDUCATION COURSE 2016COLLABORATIONSuccessful Project Delivery

David Mashburn, Director of Facility Services

DENVER INTERNATIONAL AIRPORT

February 23, 2016

2

• Introduction of Guest Speakers:

• Gretchen Gagel, Continuum

• Susan Pratt, Lean Construction Institute Consultant

• Julie Wienberg, Program Director for the DEN Great Hall Project

• Changes in Project Delivery at DEN

• Hotel / Transit Center – CMaR

• Parking Structure at MOD 4E – Design/Build with Yellow Book

• Fire Station – Design/Build with Yellow Book

• Discussion of Progressive Design Build Benchmarking Trip

• LAX, SFO, & SEATAC

• Discussion of Spatial Collaboration on the HTC Project

AGENDA

3

• Swinerton & Stresscon – Design is all about the process of producing a

product, more so than the documents.

MOD 4E – Design/Build, aka copy MOD 4W

4• PCL & Wong Strauch Design

Fire Station 35 – Design/Build, aka letting go

• RFP Program Design Design we did at DEN internally

5

6

Benchmarking with other Airports on Progressive Design Build = CollaborationLessons from LAX – Aviation industry changes too fast for old processes

– Rebekah Gladson FAIA and DBIA spoke about Progressive Design/Build, mostly relating to their Mid-field Terminal. (Next slide shows key component: Decision Making Matrix)

– Mike Doucette spoke about Lessons learned from Tom Bradley International Terminal (TBIT) (Project CMAR – had significant collaboration issues)

– LAWA Progressive Design Build on their CUP facility. (Slide from Presentation)

Lessons from SFO – Exceptional Project Delivery means Structured Collaboration

Design there on Terminals 3, 2, & 1 and FAA Tower. In a word: Awesome!

SFO is working to become their own Authority, City moves too slow for aviation industry.

This is why they do Progressive Design/Build and they have City support, because they have completed $1.5Billion with no claims.

Their motto: Soft on People, Hard on Problems.

7

Benchmarking with other Airports on Progressive Design Build = Collaboration

• LAX Decision Making Matrix for Progressive Design Build

DESIGN & CONSTRUCTION

Integrated & Collaborative Elements

Stakeholder Engagement Process

Structured Collaborative Partnering

Integrated Technology Systems

Lean Construction Tools Integrated Project Delivery

Qualification Based Selection

• SFO

Philosophy for

Exceptional

Project

Outcome


Design Builder

Bids out

Trade Package

Sets

Site Work Temporary Facilities

Site Equipment

Underground Utilities

Civil

Demolition

Foundation Piles

Excavation

Formwork

Reinforcement

Concrete

Superstructure Structural Steel

Metal Deck

Formwork

Reinforcement

Concrete

Building Systems Fire Alarm

Active Network

Passive Network

Security

Terminal Management

Core Trades (D/B) Electrical

HVAC

Plumbing

Fire Protection

Exterior Curtain Wall

Baggage Handling System

Conveyances Elevators

Escalators

Moving Walks

Dumb Waiters

Passenger Loading Bridges

Equipment (E/P) Light Fixtures

Electrical Equipment

HVAC Equipment

Window Washing Equipment

Trash Compactors

ArchitecturalDrywall

Ornamental Steel

Casework

Plaster

Glazing

Doors & Hardware

Fire Proofing

Terrazzo

Flooring

Ceilings

Insulation

Tile

Painting

Signage

Skylights

Sheetmetal

Caulking & Sealants

Expansion/Seismic Joints

Roofing

Trade Bid Packages

(D/B) Design Build Trade Package

Notes:

(E/P) Early Procurement Packages


Level 1

Leadership

Level 1

Leadership

Level 1

LeadershipLevel 1

Leadership

Level 1

Leadership

Level 1

Leadership

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Leadership

Level 1

LeadershipLevel 1

LeadershipLevel 1

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Leadership

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LeadershipLevel 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership Level 1

Leadership

Integrate the

Collaboration

Collaboration is where individuals of

the project team regardless of discipline

shares information directly with another

individual of the project team working

toward a common set of project

outcomes.

Integration is where an individual of

the project team regardless of discipline

can share the collaborative information

in a way that the entire project team can

utilize the same information toward a

common set of project outcomes.

Collaboration & Integration

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Level 1

Leadership

Group Project Team Individuals by Common Objectives


The Stakeholder Engagement Process Team Organization

Stakeholder Engagement Teams

SEP 1.4Amenities

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.1Architecture

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP Team 1.2Art Enrichment

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.3Programming

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP LeadSEP 1.1

Architecture

SEP LeadSEP 1.2

Art Enrichment

SEP LeadSEP 1.4

Amenities

SEP LeadSEP 1.3

Programming

SEP 1.4Amenities

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.1Architecture

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP Team 1.2Art Enrichment

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.3Programming

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP LeadSEP 1.1

Architecture

SEP LeadSEP 1.2

Art Enrichment

SEP LeadSEP 1.4

Amenities

SEP LeadSEP 1.3

Programming

SEP 1.1Architecture

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.2Art Enrichment

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.3Programming

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP 1.4Amenities

SEP Owner

Stakeholders

Operators

Maintainers

End Users

Design Specialist

Builder Specialist

SEP LeadSEP 1.1

Architecture

SEP LeadSEP 1.2

Art Enrichment

SEP LeadSEP 1.3

Programming

SEP LeadSEP 1.4

Amenities

SEP LSEP

SET T

Space P

SEP Owe

Stakehold

Operators

Maintaine

End Users

Design Sp

Builder Sp

SEP Group LeaderSEP Group 1Design Vision


SEP Group LeaderSEP Group 1Design Vision

SEP Group LeaderSEP Group 2

Code Compliance


Construction Planning


Building Systems

SEP Manager

SEPSA

Speci

SEP 1.2

Art Enrichment

SEP 1.1

Architecture

SEP 1.3

Programming

SEP 1.4

Amenities

SEP 2.2

Structural System

SEP 2.1

Life Safety Systems

SEP 2.3

Sustainability

SEP 2.4

TCO

SEP 3.2

Site Logistics

SEP 3.1

Civil/Utilities

SEP 3.3

Roadways/Parking

SEP 3.4

Demolition

SEP 3.6

Airside Logistics

SEP 4.2

Doors/Hardware

SEP 4.1

Conveyances

SEP 4.3

Mechanical

SEP 4.4

Electrical

Stakeholder Engagement Integration

The Stakeholder Engagement Process Team Organization

SEP 2.5

ADA

SEP 1.5

Technologies


Airport Staff

Design

Coordinator

Project

Control

Construction

Manager

Document

Control

Project Management

Support Services

Office

Engineer

Safety

Engineer

Project Manager

Resident

Engineer

Field

Inspector

Project

Manager

Project Management

Support Services

Contract

Project Team Organization

Designer

Project Manager

Architectural

Design

Interior

Design

Structural

Engineering

Electrical

Engineering

Mechanical

Engineering

Civil

Engineering

Landscape

ArchitectureLife Safety

Builder

Project Manager

Project

EngineerSuperintendent

Office

EngineerScheduler

Safety

Manager

QA/QC

Manager

Cost

Estimator

Design

Manager

Design

Services

Contract

CM/GC

Services

Contract

Design Builder

Project Director

Design Build

Services Contract

Stakeholder

Engagement Teams

SEP Group 5Special Systems

SEP Group 6Airport Operations

SEP

Manager

SEP Group 2Code Compliance

SEP Group 1Design Vision

SEP Group 4Building Systems

SEP Group 3Construction Planning

SEP 1.1Architecture

SEP 1.2Art Enrichment

SEP 1.3Programming

SEP 2.1Life Safety

SEP 2.2Structural

SEP 2.3Sustainability

SEP 4.1Conveyances

SEP 4.2Doors/Hardware

SEP 3.1Civil/Utilities

SEP 3.2Site Logistics

SET 3.3Roadways

SEP 4.3Mechanical

*

Crane Foundation

Designers’ modeled underground.

They had collaborated with utility designer under separate contract

HTC Spatial CoordinationBIM Collaboration

*This is a view of Level 5 of the Contractor’s Model

Contractor’s objective: ‘Sign off’ all trades as a team, with the latest changes up to the

critical path moment. They utilized automated clash detection.

Then shop drawings were printed. Checked the old-fashioned, legal way.


Contractor Model

*This is a view of Level 1.

Contractor’s objective: plan for future BHS system

BHS system going through change. Project moving fast. Plan to put in later. Space is

there with right of ways.


Contractor Model

*

This is a view of Level 5 of the Contractor’s model.

Contractor’s secondary objective: They did hanger coordination meetings for every

floor. Given the complexity, timing, it was amazing to witness and feel the many change

orders avoided. ‘Aggressive Negotiations’ were in the spatial coordination room instead

of the site.


16th LCI Congress | San Francisco, CA | October 7-10, 2014

Who is Lean Project Consulting?

Susan Pratt [email protected]


Keep Budgets Low & Preserve Fees

Design to Budget & Preserve Scope

Shorten Schedules & Eliminate Overtime

Maintain Project Flow & Reduce Rework

MAXIMIZE VALUE & SATISFY STAKEHOLDERS

“Amateurs work until they get it right. Professionals work until they can’t get it wrong.”

Lean and Integrated Project Delivery







AEC Labor Productivity vs Other Non-Farm Industries

Source of graph: Census Bureau, BLS

• In 1964: If a building takes 1,000 hours to build…

• In 1998: the building should take 552 hours to build

(If productivity gains = to other industries)

• In 1998: Building actually takes 1,185 hours to build

Meanwhile….

• In the same 30 years, auto manufacturers reduced

the Concept to Production Cycle from 6 Years to 14

Months (Center for Integrated Facility Engineering – Stanford)








1. Plan

2. Design (Talent)

3. Deliver



When asked how he would spend his time if he was given an hour to solve a thorny problem, Einstein said he would “spend 55 minutes defining the problem and alternatives, and 5 minutes solving it.”




When asked how he would spend his time if he was given an hour to solve a thorny problem, Einstein said he would “spend 55 minutes defining the problem and alternatives, and 5 minutes solving it.”


Within the first 10% of Design….

70% of Project Costs, Scope, and Environmental Impacts are already determined



Disintegrated Project Delivery

Stakeholders and Scope

Scope: 50% of planning problems are due to unclear definitions of scope and goals

● Project Objectives/Value Proposition

● Stakeholder Analysis

● Milestones through Pull Planning

● Technical Requirements through Cluster Groups



Connections:

Handoffs: What do people need to do their work, and how is the request for that material/information triggered?

Methods:

HOW do people actually do the work?

Output:

What are you producing, and how much, for whom?

Happy customer (internal and external)

Pathway:

Who performs what steps in what sequence?




What is the Expected Output?

1. Define a file naming structure

2. Describe and diagram how models will be separated (by building, by floor, by zones, by areas, by disciplines)

3. Describe measurement system and coordinate system

4. Identify and agree on items such as BIM and CAD standards, content reference information, etc.

From: Penn State University “BIM Project Execution Planning Guide” Susan Pratt [email protected]


Value Added Work

What the manual “says” we are doing

What we are actually doing

What we should be doing


Process Flow-What is the Expected Outcome?

Steps in the Process What Problems arise at

each Step?

How often does this

Happen?

What is the Impact?

Where does the work go after it leaves you?

FLOW WASTE IMPACT

Value Added Work



The 8 Wastes of Lean

Waiting

Overproduction

Rework

Motion

Processing

Inventory

Intellect

Transportation

Standard Work

Standard Work

Standard Work

T I M E

PR

OC

ES

S IM

PR

OV

EM

EN

T


The Hospital: Seven Service Families

●Patient access/intake services

●Unplanned/emergency services

●Procedural/invasive services

●Imaging/diagnostic services

●Clinical support services

●Operational support services

●Inpatient services

Value Stream Mapping

From: “The New Lean Healthcare Pocket Guide XL,” Hadfield/Holmes/Kozlowski/Speri

Value Stream: A series of

processes that connect

together and transform a

customer request into a

good or service that’s

delivered to the

customer, completing the

request-to-delivery cycle.



The Hospital: Seven Service Families

●Patient access/intake services

●Unplanned/emergency services

●Procedural/invasive services

●Imaging/diagnostic services

●Clinical support services

●Operational support services

●Inpatient services

From: “Lean-Led Hospital Design” by Naida Grunden and Charles Hagood Susan Pratt [email protected]


What is the Expected Output?


Don’t just do what customers ask, help them understand what they want by revealing the consequences of their desires, and making them aware of alternatives they may not have considered .



1. Plan

2. Design (Talent)

3. Deliver




In the Beginning:

The Master Builder controls all design and construction

Now:

A fragmented industry creates adversarial relationships as each party optimizes his part at the expense of the whole



“A bad system will beat a good person every time.” – W. Edwards Deming




Design of the Mechanical System

● “Waterfall approach”

● Rules of Thumb

● “Black Box”

● Optimize each system, not the whole

● Energy modeling in Design Development

● Design and Construction unlinked





“Most of the costs and much of the quality in a construction project are locked in long before production launch, and therefore the design process will be crucial not only to do things right, but also, more importantly, to do the right things.” - Stephen Emmitt

Susan Pratt [email protected] from: Lincoln H. Forbes, “Modern Construction: Lean Project Delivery and Integrated Practices”


“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” - Aristotle

Manage Lean Teams –Facilitate collaboration, find innovative ways to design and build

Root Cause Analysis –Remove the roadblocks and maintain project flow

Continuous Improvement –Define metrics to measure success and improve productivity



Target Value Design

●All major trades participate in design

●Set Target Value below Allowable Cost

●Set-Based Design

●Rapid Prototyping

●Integrate whole systems, not parts

Target Value Design


Target Value Design



●Set-Based Design



Target Value Design


Target Value Design



●Set-Based Design



Target Value Design

Susan Pratt [email protected] from: Oscia Wilson, “Owner’s Guide to Starting Integrated Building Projects”

Target Value Design

Set Based Design

Mechanical & Plumbing (17%) $1,700,000Electrical (14%) $1,400,000Foundation/Structure (12%) $1,200,000Envelope including roof (20%) $2,000,000Hardscape, Landscape (10%) $1,000,000Framing & Drywall, Millwork (12%) $1,200,000Interior Finishes (flooring, fixtures, furniture) (10%)

$1,000,000

Contingency (5%) $500,000Total $10,000,000


Gather information before design

●Study cultural and ecological patterns

●Understand water flows, topography, rainfall

rates, water sources and treatment facilities

●Understand climate, solar and wind capacity,

heating and cooling degree days, energy

sources, and typical energy consumption

●Select rating system and performance criteria

Target Value Design

Sustainability - Massing and Orientation


● Rather than estimate based on a detailed design, design based on a detailed estimate.

● Rather than evaluate the constructability of a design, design for what is constructible.

● Rather than design alone and then come together for group reviews and decisions, work together to

define the issues and produce decisions, then design to those decisions.

● Rather than narrow choices to proceed with design, carry solution sets far into the design process.

Adopt a practice of approving completed work as you design.

● Rather than work alone in separate rooms, work in pairs or a larger group face-to-face.

● Make money move across organizational and contractual boundaries in search of the best project

level investments.

Target Value Design

TVD vs Traditional Design




1. Plan

2. Design (Talent)

3. Deliver


“A bad system will beat a good person every time.” – W. Edwards Deming



Last Planner System


Last Planner System

CAN:

6-8 Week Look Ahead (Make Ready)

●Every week: drop into a look ahead window that

allows you to overcome major deficiencies in design

information or materials.

●Identify and remove constraints, break down tasks,

collaboratively design operations, ensure sequence

is correct.

●Resist psychological urge to press forward. Have

the discipline to take time to reflect and analyze and

take preventative action. Get better over time.


Last Planner System

WILL: The Weekly Work Plan

Transfer activities from Week 2 of the Make Ready

Plan into the new WWP. Only make quality

assignments:

●Only allow tasks on the WWP that are SOUND-constraints

are removed and we have everything we need to do it well.

●Make sure work is done in the proper SEQUENCE-don’t do

now what will create a penalty later.

●SIZE tasks based on the capability of the people doing the

work. Work to develop that capability.

●Only include tasks that are well DEFINED: people know

what is to be done, when to do it, where it is to be done, and

what is needed in order to do it.

From: The Lean Construction Institute Susan Pratt [email protected]

Last Planner System


Last Planner System

DID:

Percent Plan Complete

●Every week: determine the tasks complete for the

week. Only include the number of assignments

completed on the day stated. Divide by the total

number of assignments for that week.

●Calculate the percentage of tasks completed.

●Establish the list of reasons why tasks may not be

completed on time. Agree on definitions. Each week,

person who made the promise explains why work

was not completed.From: Dan Fauchier


Susan Pratt, LEED AP, PMP

Lean Project Consulting

[email protected]

www.LeanProject.com

303.656.9532

Thank you!

Susan Pratt Sueliz_

mailto:[email protected]

Transforming the worldwide building and construction industry

through revolutionary innovation.

www.ContinuumAG.com



www.ContinuumAG.com

Denver International Airport

Gretchen Gagel, President & COO, Continuum Advisory Group | 2.2.16

Owner/A/E/C Collaboration and

Integration for Success



www.ContinuumAG.com



www.ContinuumAG.com

We are a management consulting firm working exclusively with the stakeholders of the homebuilding and

construction industry to ensure that organizational and relational strategies are in place to achieve

success. Specifically, we help owners with how they plan, manage, buy and deliver capital construction

programs and services to optimize program delivery and the value received for capital spending.

About Continuum Advisory Group

► We treat our clients as partners and their businesses as our own, driving strategies that will transform their organizations and the overall industry.

► Transform the worldwide building and construction industry through revolutionary innovation.

Vision

Mission

► Our team values the long view: for our clients, our business, and our people.

Values

Optimized Capital Program Delivery

We believe that in the delivery of capital programs, four areas of program execution are critical to success:

► The development of a Plan that is

linked to the overall corporate

strategy and creates an

organization optimized to execute

the plan is critical.

► The Buying of outside services

must be strategic and focus on

generating the most value from

contractors.

► Management of internal resources

must be done to support the overall

strategic objective and provide the

tools, training and systems needed

for internal staff to be successful.

► Delivering the program requires

the integration of external and

internal resources to deliver on the

program objectives, while having

the measurements in place to

monitor and drive performance.

Gretchen Gagel www.ContinuumAG.com ► 3

► How is our industry changing?

► How would you describe “change” and its

impact on your ability to do your job?


The Ever-Accelerating Speed of Change

New technology is

accepted and adopted at

ever-increasing rates

► THE TELEPHONE took 35 years to achieve 25% adoption

► MOBILE PHONES achieved 25% adoption in 13 years

► THE INTERNET achieved 25% adoption in a mere 7 years


What Do “We” Need

DIA Representatives A/E/C Representatives


PLAN: Program Planning is a Strategic Concern (1 of 2)

►SHAREHOLDER RETURN

– The primary focus of capital construction is getting the best product to

market and maximizing shareholder return

►“PROGRAM” VS. “PROJECT”

– Overall capital construction efforts must focus on how groups of projects

drive the company’s strategic plan

►SPEED TO MARKET

– Capital construction is on the critical path – it’s not secondary to the

company’s core business


Capital construction and facilities maintenance

will be key to overall company success.

PLAN: Program Planning is a Strategic Concern (2 of 2)

►SUSTAINABILITY

– Life cycle cost and sustainability is a strategic imperative

►ASSET FLEXIBILITY

– The ability to adapt to unpredictable market changes is critical

►ADAPTABLE ORGANIZATIONS

– “Right-sizing” can only succeed if you increase flexibility to mix

external and internal resources


“I am a devotee of Peter Drucker and his insight that ‘culture eats strategy for breakfast.’ You can make

progress on a strategy for change in an organization without addressing culture, but you simply cannot

sustain change without addressing the organization’s DNA – that is its culture.”

– Anne Pramaggiore, President and CEO, ComEd

TALENT: The Race to Find the Best and Brightest

Internal and External Resources Intensifies

►KEY QUESTIONS:

– Where is the best talent for this program?

– Is it on our team? Is it on a supplier team?

– What core skills must reside in-house? How do we collaborate

with our suppliers in a flexible way that allows us to react to

market changes and other environmental factors?

– How do we find the best, most talented suppliers to execute our

programs and projects?


The need for adaptable, nimble organizations

is linked to the issue of talent.

TALENT: Sourcing Best-in-Class External Talent

is a Core Strategic Capability


Collaborative

learning with

external suppliers to

drive performance

improvement and

innovation is critical

“If our suppliers aren’t bringing us new, imaginative ways to cut cost and time out of

our projects, they won’t be working for us in a year.” – anonymous respondent

DELIVER: Optimizing Program Execution & Performance

is the Primary Tactic to Achieve Strategic Success (1 of 2)


Choosing the right people, the right processes, and the right

technology must be done for each program and project.

Blend them together effectively to achieve success.

DELIVER: Optimizing Program Execution & Performance

is the Primary Tactic to Achieve Strategic Success (2 of 2)


Each program or project requires the right “recipe.”

Overcoming trust issues regarding sharing information across organizations for the betterment of the program

and project will be key

Blending well-defined processes across

organizations to create a set of processes

specific to the program or project

Not just good talentselection, procurement

and retention…equally as important are trust and

transparency, communication, and relationships.

PEOPLE PROCESS

TECHNOLOGY

► 13

Plan Phase – 1

Gretchen Gagel

► Multiple departments are

responsible for administrative

activities and planning their

use of outside resources.

► Design review involves a

large number of departments

and can create a bottleneck

in the process.

► Support functions receive

requests from multiple

functions/individuals with

limited traffic control or

coordination of deadlines.

Plan Phase – 2

Gretchen Gagel ► 14

► Need to evaluate if both 50%

& 90% review are needed

and if all departments

involved add value.

► Unclear how the oversight,

review and approval activity

relates to the 90% review

and if both steps are needed.

► Limited planning around

inspection resources as

projects approach

bid/release for construction.

Execute Phase – 1


►Evaluate approach to bid

document review and the

opportunity to standardize

approach for similar work.

►Evaluate need for bid show

and various departments to

participate – establish criteria

for when needed and not

needed.

Execute Phase – 2


►Project progress meeting

approach is undefined and

lacks consistency.

►The process for field data to

flow into monthly budget

projections is unclear and

appears to lack central

responsibility.

►Responsibility for

coordination of activities

related to projects is

scattered.

SOURCESFACTORS

Cost

Schedule

Safety

Quality

Peers

Consultants

Industry Organizations:

CII ◦ CMAA ◦ CURT

EVALUATE: Performance Benchmarking


Successful organizations aggressively seek out

benchmarking information on a variety of variables.

“We are continually searching out the most effective benchmark information we can find

in our industry. It helps us understand how we stack up against our peers,

and how to improve the cost effectiveness of our efforts.” – Michael Mayra, General Motors

-20%

-15%

-10%

-5%

0%

5%

10%

15%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Capital Underspend Percentage By Year


$4.6*

* Under/overspend dollars in millions

$12.7*

$1.8*

$13.4*

$14.1*

$4.0*

$18.1*

$4.5*

$0.4*

$18.5* $27.0*

► 11 year total underspend – $84.3 million

A mid-year cut in

the capital budget in

response to the

financial crisis led to

this overspend

event

-18%

-14%

-4%

-4%

-3%

-3%

-2%

-1%

0%

3%

4%

6%

-20% -15% -10% -5% 0% 5% 10%

Integrys

Client Company

Puget Energy

CMS Energy

AGL Resources

UGI Utilities

Citizens Energy

TECO Energy

Atmos Energy

BGE

National Fuel

PECO

2014 Difference in Capital

Spend Forecast to Actual

2014 Capital Under/Over Spend –

Comparison – Based on Public Reporting

CompanyDollars

(Underspent)/Overspent

Integrys $(187)

Client Company $(27)

Puget Energy $(23)

CMS Energy $(73)

AGL Resources $(21)

UGI Utilities $(15)

Citizens Energy $(14)

TECO Energy $(6)

Atmos Energy $-

BGE $20

National Fuel $35

PECO $36


Under Over

CapScore Assessment

Capital Program Delivery www.ContinuumAG.com ► 20

► Continuum Advisory Group’s CapScore Assessment is a proprietary tool designed to establish the

quality and effectiveness of an owner’s capital spending. We conduct a review of 4 key areas containing

a total of 32 processes and procedures.

CapScore

Assessment

scoring is structured

relative to industry

standards,

benchmarks, and

Continuum’s

experience.

Buy: Strategic Sourcing (Services)

Category Description Score – Rec. to Improve

Base Program

Characteristics

The best performing firms tend to demonstrate

greater integration and a higher level of

relationship with their third party service

providers

6 – Build more collaborative relationships with

key contractors throughout the project life

cycle. Involve service providers in

improvement efforts.

Owner Relationship

ApproachFocused on a team approach and alliance use 5

Owner Problem

Solving Approach

The approach is focused on identifying and

implementing the best solution.

4 – Develop a team based approach to

resolve challenges and drive improvement.

Owner Team

Focus/Result Approach

Utility view of who is on the "team“ is broad

and inclusive; a formal process exists with

regular update meetings/sessions.

4


Collaboration Versus Integration

►What is the difference between collaboration and

integration?

►Does “low initial price” equal “low total delivered cost”?

►How do we make decisions that are in the best interest of

all parties involved?

►What role does trust play in the “game”?

►What are the pros and cons of collaboration? Integration?


Construction Industry Institute (CII)

► Construction Industry Institute (CII) – research on partnering and

collaboration

► Implications For The Design/Construction Process, by Robert Albanese,

February 1993, A report to The Construction Industry Institute, The

University of Texas at Austin, Under the Guidance of the Project Team

Building Task Force from Texas A&M University, College Station, Texas


High Trust / Low Cost Low Trust / High Cost

Number of Projects = 104 Number of Projects = 51

CostIncrease

3%

No Impact30%

Cost Decrease

67%

CostIncrease

45%No Impact

39%

Cost Decrease

16%


Cost Impact Related to Value Engineering



CostIncrease

4%

No Impact14%

Cost Decrease

82%

Cost Increase50%

No Impact18%

Cost Decrease

32%


Impact Related to Constructability



CostIncrease

6%

No Impact58%

Cost Decrease

36%Cost

Increase65%

No Impact29%

Cost Decrease

6%


Cost Impact Related to Dispute Resolution

XYZ Program


TEAM GOAL

A world class partnership built on trust, integrity and open communication, using industry leading

design, construction and communication tools to drive innovation and reduce waste in support of a

safe and flawless launch of XYZ.

TEAM CULTURE

► SAFETY IS EVERYONE’S RESPONSIBILITY – IT’S PERSONAL

► ONE TEAM = ONE GOAL – DECISIONS BASED ON PROGRAM SUCCESS

► ONLY SEEK “WIN/WIN” SOLUTIONS

► TIMELY, TRANSPARENT AND FULL DISCLOSURE COMMUNICATION

► PRACTICE LEAN AND CHALLENGE THE STATUS QUO TO DRIVE INNOVATION AND VALUE

► PRIDE IN OUR TEAM ACCOMPLISHMENTS

TEAM NORMS

Our XYZ Program Team behavior principles will require each of us to adhere to the following norms:

Work safe at all times

Stop unsafe acts without repercussions

Leave personal agenda outside

Decisions are made for good of program, not

for company or individual

Be honest

Be respectful

Be responsive

Act in an empowered manner

Remain open to different ways of doing things

Admit mistakes – recover and move forward

If you disagree, speak up

Listen – don’t Interrupt

Collaborate and cooperate

Always focus on driving out waste

Work smart

Speak as one voice

Practice email etiquette

Look out for each other – have each other’s backs

XYZ Program Conditions of Satisfaction

1. Every person felt personal responsibility for a safe work environment

2. Met all Production Launch Dates with zero unplanned production interruptions

3. Experienced minimal team conflicts requiring Steering Committee intervention

4. Effectively utilized team resources through clear direction and empowerment

5. Mitigated cost and schedule impacts of all changes

6. All team members achieve their project financial expectations – fair profit and budget compliance

7. Develop a partnership-based project delivery Business Model with transformed processes

8. Implement a minimum of three Lean tools

9. Institutionalize defined Team Culture and Norms validated through regular surveys

10. Limit re-work to less than 0.2% of construction value

► 28www.ContinuumAG.comGretchen Gagel

Case Study Results


Integration Enables Lean Practices

► When we integrate, we…

– Break down the barriers to lean practices

– Facilitate co-learning and innovation

– Create an environment of continuous

improvement

– Eliminate the phrase “we can’t do that”

– Foster a culture of new thinking


Why Lean Construction?

Example Client Lean Program Vision


LEAN VISION

Create a culture within the XYZ Program that emphasizes a ‘Lean mindset’ at every level and

an environment where the day-to-day actions of each member are driven by Lean practices.

LEAN GOALS

► GET 100% BUY-IN AT EACH SITE

► IMPLEMENT AT LEAST 3 LEAN PRACTICES AT EACH SITE

► ELIMINATE NON-VALUE ADDED WORK

► ACHIEVE GOOD PRODUCTION FLOW IN THE FIELD

► FOCUS ON THE PROPER ALLOCATION OF RESOURCES

► ACHIEVE OPTIMAL EXECUTION IN THE FIELD

LEAN OBJECTIVES

The following objectives will allow the Lean Team and the XYZ Program to accomplish its Lean goals:

Measure the ongoing effectiveness of Lean practices by

tracking two categories: Re-work and Schedule

Share success stories and transfer opportunities between

sites

Identify which Lean practices/tools should be mandatory at

each site, then identify new Lean practices/tools that would

be beneficial to the specific site

Create a Last Planner team

The Successful Organization is Nimble,

Adabtable and Constantly Evaluating


PLAN

BUY

DELIVER

MANAGE

The Only Constant is CHANGE

► Successful organizations proactively scan the environment searching for

drivers of change and effectively create strategies and tactics to address

those changes.

– Be nimble and innovative

– Learn how to learn

– Constantly reevaluate and improve


“We saw it coming, and we decided to get ahead of the curve.” - Cheryl Campbell, Vice President of Gas Operations, Xcel Energy

Thank you


GRETCHEN GAGEL

PRESIDENT & COO

Denver, Colorado

303.564.4164

[email protected]

www.ContinuumAG.com

Documents

BUSINESS EDUCATION COURSE 2016 COLLABORATION …...Collaboration Collaboration is where individuals of the project team regardless of discipline shares information directly with another