Dick Bayer May 16, 2011. Use the contract to influence how we do work on the project Try partnering to influence how we do work on the project

LEAN CONSTRUCTION PRINCIPLESDick Bayer May 16, 2011

The Lean Construction Institute

BACKGROUND

Use the contract to influence how we do work on the project

Try partnering to influence how we do work on the project

BACKGROUND

O A R

Change the observer

Change theoperatingsystem

HOW DO WE MANAGE PROJECTS NOW?

• Determine client requirements including quality, time and budget limits. Design to meet them.

ProgramDesign

to Program

Price

Redesign to

Match Price

© 2011 Lean Construction Institute


• Break project into activities, estimating duration and resource requirements for each activity and placing them in a logical order with CPM

Demolition

Grade & Fill

Foundations



• Assign or contract each activity, give start notice and monitor safety, quality, time and cost standards. Act on negative variance from standards

Dem

olit

ion

Low Bid G

rad

e &

FillLow Bid

Fou

nd

ati

on

s

Low Bid



• Coordinate with master schedule and weekly meetings



• Reduce cost by productivity improvement

• Reduce duration by speeding each piece or changing logic



• Improve quality and safety with inspection and enforcement

Work Inspect

Rework


TRADITIONAL PROJECT MANAGEMENT: A COHERENT COMMON SENSE

Activity Centered(CPM)

Command & Control

Organization

Transactional

OperatingSystem Commercial


LEAN PROJECT MANAGEMENT: A MORE COHERENT COMMON SENSE


Flow CenteredCollaborative

Organization

Relational

OperatingSystem Commercial

LEAN TECHNIQUES AND PROCESSES

Three opportunities of lean construction and design:

• Impeccable coordination

• The project as a production

system

• The project as collective

enterprise


Impeccable coordination

Understanding the work

Collaborative planning

Reliable promising


Understanding the Work: Traditional Process

Com

mon

Un

ders

tan

din

g CM/GC Hired

Major Trades Hired

Pre-Construction Services

Architect Hired

Engineers Hired

≤100%

SD DD CD

Construction

Owner


Understanding the Work: Lean Project

Time

Com

mon

Un

ders

tan

din

g

CM/GC Hired

Concept Design

Implementation

Construction

Architect Hired

Engineers Hired

100%

Major Trades Hired

Pre-Construction Services

Valid.

Owner


PARADE OF TRADES: ASSUMPTIONS1. The project is complete when 35 units have been processed

by each of seven trades in sequence.

2. The trades come onto the project a week apart. Work is completed and available to the next trade once a week.

3. The trades work in sequence, with each following trade able to work only on what was produced in the previous week by the prior trade.

4. Work is done by rolling a die (singular of ‘dice’) and passing the number of units rolled—up to the number of units the trade has to work on.

5. The number rolled represents the amount of work accomplished each week by the crew. On average each crew is able to produce one unit of work in the week.

© 2009 Lean Construction Institute18

Move 35 units of work through 7 trades.Work is completed at the end of the week and passed to next trade. Place materials on table as shown.

Chips (the units of work) & Score Sheet

Die

Concrete

Mason

Facade

Paint

Electrical

Plumber

Carpenter19


PARADE OF TRADES

1. Distribute score sheets as directed

2. Chips on the left of Concrete

3. Establish queue spaces between each trade and cup at end.

4. Give die to Painter5. FUNDAMENTAL

RULE: Chips move right, dice move left

© 2009 Lean Construction Institute20

PARADE OF TRADES

21

Mason rolls 2, moves 2, leaving 1 in inventory. Hands the die to Concrete. Records the result.


PARADE OF TRADES

Concrete rolls 3 and moves 3 chips.Hands the die to the painter!Records the result.

22

End of Week 1

Painter says, “Beginning week 2” Die passes left all the way around the circle to the Mason.


PARADE OF TRADES

23

Concrete rolls 2, passes 2, records. Hands die to Painter.Painter says, “Beginning week 3.”

Week 2: Mason rolls 2; passes 2, 1 in inventory. Mason records 2, hands die to Concrete.


PARADE OF TRADES

Week 3: Facade rolls, passes & records. Hands die to Mason. Mason rolls, records and hands die to Concrete. And so it goes.


PARADE OF TRADES

Concrete

Carpenter

Mason

Facade

Electrical

Paint

35

Die

Plumber

Chips

Keep passing the die to the left!

25© 2009 Lean Construction Institute

Die

PARADE OF TRADES

PARADE OF TRADES

Record the week each Trade finishes. Sum and record the Available Capacity for all Trades. Sum and record the total Remaining Inventory for all Trades except Concrete. Note the highest amount of Inventory in any week for each trade. Call out scores when asked.

26

Craft Week Complete Total Capacity (Sum "Column 1")

Total Inventory (Column 3)

Highest inventory in any week for

this trade

Concrete

Mason

Façade

Carpenter

Plumber

Electrical

Paint

Sum of Column

Circle Color of Dots on Die Blue Black Red



PARADE OF TRADES

Scheduling: How many weeks will

it take you to move 35 pieces of work through 7 trade stations?

Profitability: What’s the number of

resources you will use to move 35 pieces of work through 7 trade stations?

RESULTS#

Weeks

to C

om

ple

te

1.2.2.5.5.6 1.2.3.4.5.6 2.2.3.4.5.5 2.3.3.4.4.5 3.3.3.4.4.4

1.1.1.6.6.6

# W

eeks

to C

om

ple

te

Average

Worst

Best



Collaborative Planning Delay decisions to last responsible

moment Use Pull Planning to Create Schedules Reliability of work flow Only do work to release downstream

crews (important also in design)

LEAN TECHNIQUES AND PROCESSESCollaborativePlanning

Chilled WaterPlant–

3-D BIM model,

located the

equipment on the pad,

connected the piping and

identified the hangers . . .


Collaborative

Planning:

. . .then

designed the

structure to

carry the

building

components


CollaborativePlanning

Short loopdesign iterationsusing budget as

a design criteria

LEAN TECHNIQUES AND PROCESSESCollaborative Planning: Set Based Design

Create Analyze Converge Decide


Reliable Promising:

in Design andConstruction

Pull planning for

design efforts


Reliable Promising: in Design andConstruction

LEAN TECHNIQUES AND PROCESSESReliable Promising: in Design and Construction

Movie Time

IMPECCABLE COORDINATION & PRODUCTION SYSTEM DESIGN


Begin with blank card

Goal is to produce a card that looks like this . . .



Station 1 performs any necessary layout for installation


Station 2 is responsible for assuring batch size

Batches of 5 must be punched and secured with a paper clip


Station 3 is responsible for installing the green dot


Station 4 is responsible for installing 3 red dots


Station 5 is responsible for installing the yellow dot


Station 6 is responsible for installing star on yellow dot


PHASE 1 LOGISTICS

Workstations in work flow sequence Materials located at workstation Workstations 2-7 have an incoming queue

space Completed Batches of 5 placed in queue

space of next station Batches remain together until final

inspection


PHASE 1 POLICIES Workers perform only their assigned tasks - NO

THINKING Maintain Batch integrity - BUILD IT IF YOU CAN

and PASS IT ON IF YOU CAN’T. QC Problems only detected by Inspector - NO

FEEDBACK - NO TALKING All QC problems set aside by inspector as rework -

TURN UPSIDE DOWN QC Inspector announces first good product. Assemblers are paid by the piece, period.


PERFORMANCE METRICS Production: the number of good

cards produced in each 6 minute phase.

Time: the time it takes the first good card to get through the system.

Rework: the number of cards set aside to indicate defects in configuration or fit.

Work-in-Progress Inventory (WIP): the number of subassemblies on the table at the end of the 6 minute phase.


YOUR HYPOTHESES

How many good cards will your team produce in Phase I?

How long will it take for you to produce the first good card?

How much rework will you generate (cards set aside)?

How much WIP will you generate (subassemblies left on the table)?


HOW COULD THIS SYSTEM BE REDESIGNED FOR BETTER PERFORMANCE?


PHASE 2 LOGISTICS

Workers may have only one assembly at their workstation

Only 1 assembly allowed in queue space between stations (Batch size of 1)

Assembly can only be placed in queue when it is empty (pull mechanism).

Workstations in Work Flow Sequence Materials located at station Stations 2-7 have an incoming queue space


PHASE 2 POLICIES

QC Problems may be verbalized by any worker SOME THINKING and TALKING ALLOWED

All QC problems set aside as rework at station discovered. TURN UPSIDE DOWN

Everyone is paid hourly wages plus a bonus for team performance.

Workers perform only their assigned tasks Workers cannot fix QC problems from upstream Inspector announces first good card.


PHASE 3 LOGISTICS

Workload may be re-sequenced and/or rebalanced by the team

Workers may have only one assembly at their workstation

Only 1 assembly allowed in queue space between stations (Batch size of 1)

Components can only be placed in queue when it is empty (pull mechanism).

Workstations in Work Flow Sequence Materials located at station Stations 2-7 have an incoming queue space


PHASE 3 POLICIES

Workers perform ANY step in the production process.

QC problems can be fixed by any worker - Fix it when you find it.

No restrictions on talking. Everyone is paid hourly wages plus a

bonus for team performance. Inspector announces first good card.


YOUR HYPOTHESES

How many good cards will your team produce in Phase III?

How long will it take for you to produce the first good card?

How much rework will you generate (cards turned upside down)?

How much WIP will you generate (subassemblies left on the table)?


THE DOT GAME

1. What are the key points or lessons for you?2. How might these apply to designing and

building? How could you use what you have learned on your project?


GOALS FOR PRODUCTION SYSTEM DESIGN Match throughput rate to demand rate Minimize cycle time Reduce WIP to the minimum needed to

maintain throughput Minimize resources required



Reliable Promising: in Design and Const.

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

33308 33316 33323 33330 33337 33344 33351 33378 33385 33393 33406 33427 33432 33439

PPC

4 Week Moving Average

Planning System Measurement


Production System Design


Production System Design: Target Value Design Pull planning Built in Quality Plan Safety Plan First Run Studies Metrics


Collective Enterprise: Maximize the whole, not the pieces


Collective Enterprise: Maximize the whole, not the pieces

Contingency

CM/GC

Architect

Mechanical

Electrical

Engineering

Steel

Drywall

Conc. Civil

Glazing

Profit

“BUILDINGS LEAK AT THE INTERSECTION OF CONTRACTS”

Waterproofing

Structural steel

Roofing

Window

Caulking

Masonry

Concrete

Excavation

Foundation

Wall stud

Todd Zabelle


KEY LEARNINGS

• The larger system is the focus of management attention, not local optimization

• Stakeholder interests are aligned through shared risk and reward

• Product life cycle stages are considered in the development of the value equation

• Product and process are designed together; indeed, all design criteria are considered when generating and selecting from design options

KEY LEARNINGS

• Downstream players are involved in upstream work, and vice-versa

• Continuous learning and innovation is the real end game

• Variation is attacked and reduced —variation in work load, in process durations, in product quality, in plan reliability, …

KEY LEARNINGS

• Inventory, capacity, schedule and financial buffers are sized and located to perform their function of absorbing variability that cannot yet be eliminated

• The rule followed for release of work between connected specialists is: Flow where you can, Pull where you can’t, Push where you must

• Activities are performed at the last responsible moment

WHO’S DOING LEAN?

•Healthcare Projects (IPD or IPD-ish):

• Sutter Health, Northern California

• Camino Medical Center (DPR)

• Castro Valley (Turner)

• Cathedral Hill (Herrero/Boldt)

• Palo Alto Medical Center (Skanska)

• Sacramento General (renovation/new: Boldt)

WHO’S DOING LEAN?

•Healthcare Projects:

• UHS, company-wide

• Texhoma

• Temecula: Reducing sqft costs to $900/

• SSM,

• Cardinal Glennon, St. Louis

• St. Claire, Fenton, Mo.

WHO’S DOING LEAN?

• Healthcare Projects:

• Affinity Healthcare, Appleton, Wis.

• Augusta General, Maine

• Martin Memorial, Stuart, Fla.

• Seattle Children’s

• Theda Care, Wisconsin

WHO’S DOING LEAN?

• Public Projects:

• School Projects:

• Middle School, Dallas

• Middle & High Schools, Los Angeles

• Community College, San Diego

• St. Olaf College, Minnesota

• Community College, Cleveland

WHO’S DOING LEAN? DESIGN FIRMS

WHO’S DOING LEAN? CONSTRUCTION FIRMS

WHO’S DOING LEAN? CONSTRUCTION FIRMS

WHO’S DOING LEAN? TRADES

Visit www.leanconstruction.org for all of our Corporate members

http://www.leanconstruction.org/

THANKS!

Dick BayerInterim Executive [email protected]

858-373-8449

mailto:[email protected]

Documents

Dick Bayer May 16, 2011. Use the contract to influence how we do work on the project Try partnering to influence how we do work on the project