Construction Production 2.0

Pat Geary

Chief Operating Officer

Story Construction Co.

Agenda

• Introduction

• The “Why” and Vision of Construction Production 2.0 (CP2.0)

• What is CP2.0?

• Planning & Scheduling Realities In Construction

• CP2.0 Project Culture

• Daily Crew Production Flow & System Requirements

• Closing

2

Story Construction Co.

• Ames, Iowa based Commercial & Industrial Contractor

serving all of Iowa with revenue of $75 - $80M per year.

• Employs nearly 150 people and self-performs concrete,

precast &steel erection, rough & finish carpentry and process

pipe & equipment.

• Markets served include: Office, Warehouse, Lab, K-12

Schools, Higher Education, Church, Senior Living,

Renewable Fuels, Meat Processing and Water & Wastewater

Treatment.

Story Construction Co.

• In July of 2013, we decided to significantly modify the

methods we used to plan and schedule our projects and

Construction Production 2.0 (CP2.0) was the system we

choose to employ to accomplish that goal.

• CP2.0 is grounded in many lean principals to include some

similarities to Lean Last Planner, however, CP2.0 expands on

lean to include focus on the project culture and team member

growth and development.

• The company wide transition to CP2.0 took 18 months and

now all projects, no matter type, size, location, delivery

method, etc. use CP2.0 as the planning and schedule

system.

• Video No. 1

CP2.0 “Why” Production Vision

“What”Every Crew on every

Story project

continuously

executes its

assigned work

flawlessly to meet its

daily production

target without

incident or defect.

• Video No. 2

CP2.0 is…

• Story’s answer to the following:

– Retiring boomers

– Shrinking labor supply

– Continued decline in productivity

– Accelerating the growth and development of our staff

• A Journey, not a happening

• Continuous Improvement…Embrace the Variances

• Compliance to Commitment… Creating Strong Teams in

Supportive Cultures

CP2.0 – System Principles

• The components were designed to promote teamwork.

• The experience for all participants should be the same on all

Story projects.

• The process should:

– Incrementally increase level of detail of planning and

understanding of the work

– Filter bad information and poor planning from getting to the

workface.

• All the participants to have fun while predictably and reliably

getting the work done.

CP2.0 is not…

• A magic bullet

• A happening or instantaneous change

• Effortless

• Creating more work for project teams

CP2.0 is a framework for success that will yield the results

based on the effort invested.

Principals impacting Industry Production

0

20

40

60

80

100

120

0 20 40 60 80 100

Series1

Perc

ent

of

Pro

duct

Com

ple

te

Percent of Scheduled Time to Complete

Student

Syndrome

Parkinson’s Law

Murphey’s Law

Multi-Tasking

Industry Scheduling/Planning Reality

• Work at the crew level is hostage to the manner in which

work is supplied by the upstream Pre-Construction & Project

Management activities.

• Project Schedules are based on Early Start of activities to

protect against highly variable supply of production inputs

and production rates – the effect is, our industry is very good

at starting activities and not very good at completing

activities.

Industry Scheduling/Planning Reality

• Research conducted by the Lean Construction Institute

(www.leanconstruction.org), specifically by the founders

Glenn Ballard and Greg Howell, “found that in conventionally

managed construction, a realization rate of 50 – 60% is

typically found for weekly tasks”, as published in “The

underlying theory of project management is obsolete” (2002).

• The research found that only 50 – 60 percent of the tasks

planned to be completed this week were actually completed

this week. Prior to CP2.0, Story was most likely not any

better.

Principals of CP2.0

0

20

40

60

80

100

120

0 20 40 60 80 100

Series1

Perc

ent

of

Pro

duct

Com

ple

te

Percent of Scheduled Time to Complete

New Pace/Goals &

Planned Completion Date

SetCollaboratively Planned Daily

Production Goals, Rate, Pace

Buffer

As Late As

Possible and

Reliable

Story’s Scheduling/Planning Reality

• Work of the upstream Pre-Construction & Project Management activities will be done as dictated by the flow of work at the crew level.

• Project Schedules will be based on Late Finish of activities .

• We will plan & execute the work on our projects to achieve consistent, predictable daily crew production flow.

• Since Jan. of 2014, Story Projects using CP2.0 have completed 78.74% (75,907 of 96,401) of their daily crew production goals when planned as planned.

Projects that “feel right” have these

traitsAbout 2 ½ years after starting our work with CP2.0 we discovered the projects with the highest PPC “felt right”, so we spent time defining “felt right”.

Development Behavior Culture

Educate Accountable Respect

Coach Selflessness Trust

Evaluate ConfidentCollaboration

Experiential Learning thru Anticipatory Teamwork

guided experimentation Enthusiastic “The way we do it”

Incremental Conformance Engaged

What we learned is the right culture drives great results when given the proper process to execute.

Conduct Experimentsto get there

Grasp the Current

Condition

Establish your Next

TargetCondition

Get the Direction orChallenge

1

2

3

4

The Four Basic Steps of the Improvement Kata

www.katatogrow.com

A Kata is a routine you practice, so it’s

pattern becomes an automatic habit that

gives you new skills.

Kata

• The “Improvement Kata” is a scientific routine for achieving

tough goals.

• The daily pattern consists of:

– Plan

– Do

– Check

– Reflect

• YouTube Video: “Rother – Improvement Kata Mind Set”

Daily Crew Production Flow

• Two critical objectives every day for each and

every crew on the project:

1. A high quality crew work assignment and

production goal that is understood and

committed to by the crew.

2. A high quality work area in which the work can

be completed without interruption or

disruption.

• What is Quality?

– Conformance to a set of requirements.

– Is this a quality meeting?

Meeting Requirements

Be on time

Be prepared

Turn-off phones & radios

One person speaks at a time

No Side Conversations

Table small group topics for

discussion until after this

meeting

Be honest

Be brief, get to the point

SHOULD Filter

• Screens work being pulled from Phased Pull Production

Schedule onto the Look Ahead Production Schedule.

• Result: Only the work that meets the requirements of

SHOULD filter passes to the left.

• Only work that SHOULD happen passes.

• Not work that is simply able to pass.

MakeCertain! Tasks

• Support task or activity:

– Associated with work activities scheduled to

complete over the next 2 weeks.

– Examples:

• Prerequisite work/activities, inspections, survey

• Special site preparations

• Supply of the six elements

– Manpower | Materials | Tools | Information | Environment |

Equipment

– They must be complete before work CAN be accomplished.

• Projects with the highest number of MakeCertain! Tasks

consistently produce higher PPC results.

CAN Filter

• Screens work being pulled from One-week Look Ahead

Production Schedule onto Next Week’s Production Plan.

• Only the work that meets the requirements of the CAN Filter

passes to the left.

• Simply put, only work that CAN be done – when planned, as

planned – passes the CAN Filter.

• Not work that we hope will happen.

This Week’s Work• Post-It Note

Requirements

– All notes must be filled

out completely.

– Quality of notes directly

impacts level of

predictability and

reliability of each day’s

work.

• Video No. 3

Basic Meetings• Project Expectations Meeting (typically 90 minutes)

– Discuss expectations of the project participants.

– Commit to the collaborative project approach.

• Weekly Information Meetings (1 hour or less)– Review status of information with A/E, Owner & major Subcontractors.

• Weekly Production Team Meeting (1 hour or less for Foreman)– Review future project schedule (2-6 weeks out).

– Each foreman present next week’s work to the group.

– Confirm next week’s scheduled work meets CAN Filter requirements.

• Daily End of Shift Meeting (15 minutes or less for Foreman) – Report status of today’s planned work.

– Discuss tomorrow’s work plan.

• Daily Toolbox & Tailgate Meetings (15 minutes or less for crews)– Meetings to start and finish to work of the crew each day.

Planned Percent Complete (PPC)

1 Weather

2 Pre-requisite work incomplete

3 Congestion or crew conflicts

4 Manpower (- for shortage + for extra)

5 Equipment or tool failure

6 Lack of materials

7 Lack of information

8 Wrong information or plan bust

9 Change of priority

10 Completed task early

(and NOT because of another reason above)

Totals 75907 96401 78.74% 2679 2380 541 3337 60 217 1270 512 1980 4683 2603 Varanice Totals

2.8% 2.5% 0.6% 3.5% 0.1% 0.2% 1.3% 0.5% 2.1% 4.9% 2.7% Percent of All Activities

13.1% 11.6% 2.6% 16.3% 0.3% 1.1% 6.2% 2.5% 9.7% 22.9% 12.7% Percent of Variance

CompletedScheduled Percent 1 2 3 4- 4+ 5 6 7 8 9 10 Notes

2014 6837 9307 73.46% 400 236 109 303 8 28 170 47 206 605 337

4.3% 2.5% 1.2% 3.3% 0.1% 0.3% 1.8% 0.5% 2.2% 6.5% 3.6% Percent of Total

2015 17327 22602 76.66% 681 710 122 746 25 56 314 105 551 1148 714

3.0% 3.1% 0.5% 3.3% 0.1% 0.2% 1.4% 0.5% 2.4% 5.1% 3.2% Percent of Total

2016 18092 23007 78.64% 588 731 152 950 3 40 324 176 417 1094 416

2.6% 3.2% 0.7% 4.1% 0.0% 0.2% 1.4% 0.8% 1.8% 4.8% 1.8% Percent of Total

2017 19553 23705 82.48% 394 363 112 661 17 39 302 122 383 1058 635

1.7% 1.5% 0.5% 2.8% 0.1% 0.2% 1.3% 0.5% 1.6% 4.5% 2.7% Percent of Total

2018 14098 17780 79.29% 616 340 46 677 7 54 160 62 423 778 501

3.5% 1.9% 0.3% 3.8% 0.0% 0.3% 0.9% 0.3% 2.4% 4.4% 2.8% Percent of Total

Activities Variances

Variance Reasons

ALL PROJECTS - BY YEAR

CP2.0 PPC REPORTING

Closing

• We are changing Story and the industry.

– Retiring boomers

– Accelerating growth and development

• We have not invented a new type of planning but

simply have changed the culture we create and how

& when we discuss the work.

• Our effort will determine our future.

• Embrace the variance (it has always been there).

• Work to make our projects and people better each

day.

Questions?