Lci la chapter lean intro 071410 no pics

Overview of Lean Construction

Lean Construction Institute

Stan Chiu - RTKL

Julie Dobyns - DPR Construction

Dennis Sowards - LCI

Workshop ObjectivesAt the end of this session you will be

able to: Explain the background, benefits and

principles of Lean thinking Understand how Lean techniques and

tools work Learn how Lean thinking has been

used in Construction Identify which Lean techniques apply

to your operations

Think Lean!

How do we bid a job today?

Estimate theCosts $$

Profit margin

+ = Bid Price

The Lean way to bid a job:

MarketPrice

- Profit margin

= Cost to dothe Job

Is this Possible?

Why Lean?

Where Would You Cut?

Direct costs Labor 60%Materials 25%Equipment 6%Sub Contractors 7%Indirect Costs 2%

What would be the possibilities if you could reduce your Cost of Goods sold (Direct Operating Costs) by 15%?

Why Lean?

Lean Companies have seen improvements: Manufacturing Lead Time - less than 1 day Delivered Quality – 3 PPM Delivery Performance – 99+% Inventory Turns – Greater than 50 turns per year Manufacturing space - reduced 35 to 50% New product development – less than 6 months

Source: Lean Transformation by Bruce A.Henderson and Jeorge L Larco,1999.

Why Lean?

Why Lean?Air Strut Assembly Process

Before Event 1 Event 2 Event 3

Part Travel Distance (ft): 4300 2900 80 75

# of Tubs locations: 24 13 3 1

Dirt Shields Lead time 18 days 4 days 0.2 days 39 sec.

Work in Progress

- Dirt Shields 9,078 2,000 100 10

- # of Process Steps 42 33 15 14

# of Forklift moves 16 9 2 1

Inventory Floor

space (sq.ft.) 288 80 20 0

IndustryWeek, Best Practices from American’s Best Plants, Chicago, IL, Oct. 26-28 1998.

FACT 1: Lean Works

in Manufacturing

Studied 50 jobs all over $300,000 in labor

average productivity ratio

Jobs not using Last Planner 0.97Jobs using the new approach 0.88

Lean construction techniques saved 17% of their Projects' labor budget - a savings of $1,511,544!

Source: Jim Teston's master thesis at Clemson University: Evaluating the Benefits of Lean Construction on Productivity August 1998.

TDIndustries

Lean in Construction

A customer in the Southwest Region

Pilot Project: Using LPS on Two tools (Nov. 1999 - March 2000)

Results - The customer said:“ Durations have been reduced on major tools by 29%”

Actual Usage: Wet Bench Tool Install – Beat the standard by 300 hours!


Waste Reduction in a Design Office

0,0

0,5

1,0

1,5

2,0

2,5

3,0

Before After

0,0

2,0

4,0

6,0

8,0

10,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

PRODUCT UNIT ERRORS

% OF WAITING TIME IN PROCESS

% NON VALUE ADDING ACTIVITIES

44% Decrease 53% Reduction 31% Decrease

PRODUCTIVITY INCREASE OF 31%Reduced design time by 18 daysGenerated $1.3M annually to EBIT

FACT 2:Lean works

in AEC Industry too!

Customer Expectations

General Motors is challenging the industry to develop, embrace and implement Lean Principles:

•Expect construction firms to be proactive in applying Lean Concepts

SMWIA/ SMACNA - 2006 Partners in Progress Conference

Sutter Health Capital Program

The Executive Challenge:

Successfully execute the design and construction of resultant $5.5B program using Lean Project Delivery Methods

Construction Users Roundtable (CURT) says:Education is key;

There needs to be a shift in everyone’s way of thinking;

LEAN targets the best workforce, forms solid relationships and builds trust;

Owner’s must be the agents of change and must demand change; and

LEAN must become the new culture of the industry.

Issued June 2007

FACT 3:Customers are beginning to

see the value of Lean Construction!

Toyota’s goal:

“Give customers what they want, deliver it

instantly, with no waste.”

What is Lean?

Lean History

Henry Ford

Toyota - Taiichi Ohno & Shigeo Shingo

Kaizen - Masaaki Imai

Lean Thinking - James Womack & Daniel Jones

What is Lean?

QuickTime™ and aBMP decompressor

are needed to see this picture.

Lean Thinking is a concept of Continuous Quality Improvement

Lean Thinking is a shift in management's focus to differentiate between Value and WasteAKA: JIT & Toyota Production System (TPS)

Lean Construction applies the principles and techniques of Lean Thinking to develop a better way to deliver the job.AKA: Lean Project Delivery System

What is Lean?

Lean in the Construction Industry: Three Connected Opportunities

1. IMPECCABLE COORDINATIONWORKFLOW BASED OPERATING SYSTEM

2. ORGANIZING PROJECTS AS PRODUCTION SYSTEMS

3. THE PROJECT AS A COLLECTIVE ENTERPRISE.

© Lean Construction Institute, 2009

What the customer is actually willing to PAY for (USEFULNESS/COST)

Includes Functions, Features, Time & Price

Relates to the whole product or service received

Is the opposite of WASTE.

What is Value?

7 Basic Types of Waste (Muda) Defects in products: Rework, Field orders & Punch Lists Overproduction: Fabricating material or ordering it too soon, JIC

thinking. Ordering extra material because of poor quality or fit Inventory: Material stored at site or yard, work in process,

unused tools & parts, forms and stashes Unnecessary processing: Double & triple estimates from

suppliers, redundant or unnecessary reporting, multi signatures on forms, material requisitions or time sheets, any non-value added steps

Unnecessary movement of people: Treasure hunts, looking for files, drawings and poor layout of work area (ergonomics) Movement Not = WORK!

Transport of goods: moving material, tools or parts, handing off work between crews

Waiting: Crews waiting for equipment, plans, RFI’s, field orders, or material, payroll waiting for time sheets, equipment waiting to fabricate material

What wastes have you seen today?

What Lean is NOT!

A smoke screen for downsizing

BIM

A big capital or systems investment Don’t focus on the improvements that cost a lot - focus on the many improvements that don’t cost a lot!

Some tools

Something you do to your employees

The pace of improvement is directly related to the square of the number of employees participating.

Why Do We Need Change?

Current Manufacturing

Current Construction

Value Added

10%

SupportActivity

33%

WasteWaste57%57%

Compelling reason to change from Construction Industry Institute (CII)

ValueAdded62%Support

Activity 12%

WasteWaste26%26%

Value vs.Waste

Pursue Perfection

Pathway to Lean

Flow

Pull

The

Value

Stream

Look at Value Added & Non-Value Added Time

VALUE NON VALUE ADDED ADDED

TOTAL TIME

Typically Value added time is about 3% of the Total Time! (Yet we tend to focus our improvement efforts on the value added steps.)

Value Stream Analysis

Flow

Want to make Value Flow

Batch and Queuing VS Flow

Flow is Counterintuitive

Sign & date cards

Flow Exercise

Value of Flow: Faster + Improves Quality + Surfaces Problems - so can solve them!

Means no one upstream should produce a good or service until the customer downstream asks for it. Products and services are created only on demand.

PULL

Flow where you can - Pull if you must!

Pursue Perfection

What if there were no WASTE at all?

The paradox is that perfection can never be achieved,

but must be pursued.

Continuous Improvement

Operations vs. Processes

Lean Principles

Lean focuses on the space between the stepsManaging the handoffs in critical to flow.

Estimating creates the material take-off list

Detailing

Prepare & Submit Submittals

Foremen reviewsPlans, do constructability analysis

Foreman fills out Material

Req. (MR)

Material installed

Materials received

at site

Materials stored at site until needed

Materials ordered

by Purchasing

Lean Principles

Lean focuses on maximizing the whole project NOT on maximizing individual performance.

PDCA & Experimentation

Lean PrinciplesPlan Do

Act Check

Plan Do

Act Check

Plan Do

Act Check

Plan Do

Act Check

Basic Lean Tools & Techniques Five S’s Muda Walk - “Chalk Watch” Last Planner System Kaizen Event Kanban Poka-Yoke Process Mapping/Value Analysis Rules of Release Spaghetti Chart Visual Controls A3 Reports

Lean Tools & Techniques

Sorting Simplifying Sweeping Standardizing Self-discipline

The 5 S's

SORTINGSort out the necessary from the

unnecessary, discard the unnecessary.

The 5 S's

How to Sort?

NECESSARY ITEMS USED OR LIKELY TO BE USED

UNNECESSARY ITEMS (NOT USED OR NOT LIKELY TO BE USED)

NO VALUE & EASY TO DISPOSE OF

SOME VALUE

NO VALUE BUT COSTLY TO DISPOSE

DISPOSE OF IMMEDIATELY

LOOK FOR BEST USER TO GIVE OR SELL

FIND LEAST COSTLY WAY TO DISPOSE

RARELY USED (1 - 2 times per year)

FREQUENTLY USED (daily or weekly use)

OCCASIONALLY USED (1 - 2 per month)

REDTAG

USEAUCTION

SIMPLIFYINGCreate and identify a place for everything

based on how often we use it

The 5 S's

The 5 S'sSimplifying Steps:1.Review all frequently used items and put those used

most often closest to the work area, those used less often, further away.

2.Develop a way to label or show where everything goes. Consider:

· Shadow board· Marking the item and the location· Color-coding· Labels on drawers with list of contents inside

3. Develop ways to daily replace usable items· Establish lead times for replacement of daily usage supplies· Determine minimum and maximum supply levels and mark them

Unfiltered Spec Job Specific Spec

Size Set @ 2”

18 Choices

2 Choices

CAD

The 5 S's

SWEEPINGPhysical and visual control of

the work area

Sweeping ActionsSweeping is done when regular sweeping processes occur and

areas are clean, safe and neat.

Actions:· Determine regular schedule for cleaning the

yard, work & break areas.· Orient everyone including new employees with

daily 5S’s activity responsibilities and expectations.

· Post area cleaning guidelines and schedules.· Perform safety inspections on a regularly

schedule.

The 5 S's

STANDARDIZING

is creating standard ways to keep the work areas organized, clean and orderly and documenting agreements made during the 5S’s.

How to Standardize? Standardize:• Labeling• Tools & equipment• Forms• Gang boxes layout• Yard Layout• Trailers

• Have clear instructions for people who deliver goods or materials to the site. Clearly mark and post where the material, tools & equipment are to be placed.

The 5 S's

SELF-DISCIPLINEFollow through with the 5Ss

agreements

How to create self-discipline:Self-discipline is done when:• The 5S’s rules for Sorting, Simplifying, Sweeping and

Standardizing are being followed.

• All changes have been documented.

• A daily 5S’s activity checklist is posted and used.

• The work area is being kept neat and clean & the Work Flows!

The 5 S's

Self Discipline often includes an Self Audit/ Score Card

Not Started Action# Checklist Area Done In Progress

1 Are work benches, trailers, gang boxes and the area free of unnecessary items and are items present used on at least a monthly basis?

2 Are walk areas unobstructed and marked?

3 Are lay down areas easily identified for material, mobile carts, tool boxes, lifts, etc.?

Do 30 second test!

Contractors doing 5S’s report: Freed up a space on both sides of the shop (3 foot

wide and the length of the shop) Reduced daily mobilization for trucks from 20 - 30

minutes to 5 minutes Returned $5,000 in materials Saved 90 field man-hours on one job by reducing

crew time getting ready for job An accounting department got rid of 18,000

duplicate copies of shop invoices freeing up file space and saving administrative time.

Reduced warehouse space by 40%

5Ss Applied to Engineer DesignSort - out old standardsSimplify - where files are stored, color

codesSweep - Monitor how usedStandard - Templates, spec sheets, etcSelf-discipline - Monthly self-audits.30

sec tests

Another view of 5S’s

Assume -the best way we do it today is the worst way tomorrow! Find a better way to do it.CEO of Toyota

Do a Muda Walk

Go to Gemba & do “Chalk Watch” Flow (Don’t watch the work - watch for what gets in the

way of value!) Treasure Hunts Waste Standards/systems/methods

(can’t improve if no standard way exists) Equipment maintenance & utilization Ask Why? (5 times) - Root Cause Analysis Ask: How can we make it easier for you to

do your job? Fix Problems Now

Lean in the Construction Industry: Three Connected Opportunities

1. IMPECCABLE COORDINATIONWORKFLOW BASED OPERATING SYSTEM

2. ORGANIZING PROJECTS AS PRODUCTION SYSTEMS

3. THE PROJECT AS A COLLECTIVE ENTERPRISE.

© Lean Construction Institute, 2009

Parade of Trades: Setting the stage1. The project has 35 units of work to be processed.

2. There are seven trades, each of which must process all 35 units of work in order for the project to complete.

3. The trades come onto the project a week apart.

4. 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.

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

6. The number rolled represents the number of workers brought to the site that week by the trade rolling the dye. Each worker is able to process one unit of work in the week.

Parade of TradesMove 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

Carpenter© 2009 Lean Construction Institute

1. Distribute score sheets as directed2. Chips on the left of Concrete3. Establish queue spaces between each trade and cup at end.4. Give die to Painter

© 2009 Lean Construction Institute

End of Week 1


Concrete rolls a 3 and moves 3 chips.

Hands the die to the painter!

Records the result.

Week 1

Concrete

Pass the Die to the Left!

Painter says,

“Beginning week 2”

Die passes left to Mason.

Mason rolls 2, moves 2, leaving 1 in inventory.

Hands the die to Concrete.

Records the result.


Concrete rolls 2, passes 2, records.

Hands die to painter.

Painter says, “Beginning week 3.”

Week 2 continued.Mason hands die to Concrete.


End of week 2

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


Moving one chip through one station requires 1 “crew” work unit costing $1000. How much will it cost to complete the project? (Hint: 35 Units of work are required at each station and there are 7 stations.)

What would you bid – markup on labor?

A die has an average production of 3.5 units per roll (week). How long will it take?

Scheduling and EstimatingScheduling and Estimating

Concrete

Carpenter

Mason

Facade

Electrical

Paint

35

Die

Plumber

Chips

Keep passing the die to the left!


Die

When work is complete….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. Bring die and score sheet to the front.

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


20 Most RecentRed23344

5

Black12345

6

Blue12255

6

333333

Duration Weeks

19 21 23 18

Total Capacity

$294 332 361 252

Inventory Units

55 112 120 0

RESULTS#

Wee

ks t

o C

ompl

ete

1.2.2.5.5.6 1.2.3.4.5.6 2.2.3.4.5.5 2.3.3.4.4.5 3.3.3.4.4.41.1.1.6.6.6

# W

eeks

to

Com

plet

e

Average

Worst

Best

As reduce workflow variability (more reliable)- Outcomes improve & risk goes down!

Question for Discussion

What would be the specific advantages of improved work flow reliability on your projects? For 10 minutes, discuss at table. Select a spokesperson to report.

• Reducing workflow variability– Improves total system performance– Makes project outcomes more predictable– Simplifies coordination– Reveals new opportunities for

improvement• Point speed and productivity of a single

operation doesn’t matter – throughput does.• Strategy: Reduce variation then go for

speed to increase throughput.

Key Points

Basis of Last Planner System

Which way will your crew be more productive:

Doing work as planned?

Doing unplanned work?

Research shows that on the average crews are doing the work they planned to do for the week - only 54% of the time.

Which type of work is your crew doing today?

Last Planner SystemStarting Point: All plans are forecasts and all forecasts

are wrong. The longer the forecast, the more wrong it is. The more detailed the forecast, the more wrong it is.

Plan in greater detail as you get closer to doing the work.

Produce plans collaboratively with those who will do the work.

Reveal and remove constraints on planned tasks as a team.

Make reliable promises. Declare and then learn from breakdowns.

* ©Lean Construction Institute, 2009

Activity Focus ignores value creation and the flow of work.– Collaboration in design is limited– Fails to produce predictable work flow

Command and Control planning cannot coordinate the arrival of the wherewithal or work of specialists.– Opportunities for trading ponies for horses are

lost– Push systems are commitment free zones.

Control begins with tracking cost and schedule.– Efforts to improve productivity leads to Unreliable

Work Flow further reducing project performance. – Protecting activities leads to adversarial relations.

Problems with Current Practice

Two Ways to Manage Projects:

Flexibility - throw resources at the project to overcome variation. (FPS)

OR

Lean - Manage variation through LPS and Shield crews from variation.

To get the construction to flow we must have reliability of the work performed.

Reliable work is that work which is done as promised allowing the next work assignment to be started as planned.

Control - A project is under control when we can do what we say we are going to do!

Task 1Task 2

Task 3

The Last Planner System *


Common Practice: Some Assignments Cannot be Completed

CAN

SHOULD

Will

60%

40%

Should Do

Look Ahead

Plan

M T W TH F S STask 1 X XTask 2 X X XTask 3 Y Y YTask 4 Y Y

Weekly Work Plan

Review accomplishments

& constraints (PPC)

Action to prevent

repetitiveerrors

Can Do

Will Do

Shield

The Last Planner System (LPS) *


Master Schedule

Phase PlanPhase Schedule

Perform Work

& Daily Huddles

The Last Planner® System of Production Control5 - Connected Conversations

Set milestonesSet strategy Identify long lead items

Specify handoffs Identify operational conflicts

Make ready &Launchreplanning whenneeded

Promise

Measure PPC &Act on reasonsfor failure tokeep promises

SHOULD

CAN

WILL

DID

Weekly Work Planning

Make Work Ready Planning

Learning

Master Scheduling

Milestones

Phase “Pull” Planning

Pull Planning: Designing the Network of Commitments• Produces the best possible plan by involving the

team of people who manage the work in that phase.

• Rehearsing together – Aligns understanding, reveals unexpected

interactions, problems and value adding opportunities: Builds relationship.

– Assures that everyone in a phase understands and supports the plan by the working as a team.

– Assures the selection of value adding tasks that release other work by working backwards from the target completion date to produce a “pull” schedule.

– Establishes the amount of time available for ‘contingency’ and how it should be allocated.

Phase Schedule

Common way we schedule work:

My Schedule vs Your Schedule

Reverse Scheduling: Our Schedule

PRO JECT NAM E: Widget M anuf act ur ing START DATE: LO CATI O N: Wilsonville, O R

DATA DATE: END DATE: CALENDAR PERI O D:

14 17 18 19 20 21 24 25 26 27 28 1 2 3 4 5 8 9 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31

Tot als ( on- sit e)

2 2 2

2 2

2 2

4 4 4 33 4 4 4

4 4 4 23 4 4 4

5 4 4

4 4 4 4 4

2 2

4 5 5 5 5 5 5 5

0 0 0 25 4 2 01 6 1 6 8 61 8 1 8 1 9 1 91 5 1 5 1 5 1 50 0 4 80 0 0 0

6 6 4 46 6 6 64 4 6 6

3

3 3

1

2 3 3 3

2 3 3

I nsulat e CHWS/ R Piping

Test CHWS/ R Piping

I nsulat e HWS/ R Piping

CHWS/ R Conn. @ VAV Boxes

Test HWS/ R Piping

HWS/ R Spool Dr awings

I nst all CHWS/ R m ains/ br anches

Fab CHWS/ R piping

Fab HWS/ R piping

I nst all HWS/ R m ains/ br anches

14- Sep- 01

02- Nov- 01

Punch List

CHWS/ R Spool Dr awings

Roof Syst em

M echanical R. I . Sect or " A"

1 1

1 1

Label Pipe Syst em s

06- Aug t o 8- Nov

Sept em ber O ct ober

30- Aug- 01

Set VAV Boxes - Com posit e

ACTI VI TY DESCRI PTI O N

St ar t up & Com m isioning

HWS/ R Conn. @ VAV Boxes



14 17 18 19 20 21 24 25 26 27 28 1 2 3 4 5 8 9 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31


2 2 2

2 2

2 2

4 4 4 33 4 4 4

4 4 4 23 4 4 4

5 4 4

4 4 4 4 4

2 2

4 5 5 5 5 5 5 5

0 0 0 25 4 2 01 6 1 6 8 61 8 1 8 1 9 1 91 5 1 5 1 5 1 50 0 4 80 0 0 0

6 6 4 46 6 6 64 4 6 6

3

3 3

1

2 3 3 3

2 3 3


Test CHWS/ R Piping



Test HWS/ R Piping



Fab CHWS/ R piping

Fab HWS/ R piping


14- Sep- 01

02- Nov- 01

Punch List


Roof Syst em


1 1

1 1


06- Aug t o 8- Nov


30- Aug- 01







14 17 18 19 20 21 24 25 26 27 28 1 2 3 4 5 8 9 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30 31


2 2 2

2 2

2 2

4 4 4 33 4 4 4

4 4 4 23 4 4 4

5 4 4

4 4 4 4 4

2 2

4 5 5 5 5 5 5 5

0 0 0 25 4 2 016 16 8 618 18 19 1915 15 15 150 0 4 80 0 0 0

6 6 4 46 6 6 64 4 6 6

3

3 3

1

2 3 3 3

2 3 3


Test CHWS/ R Piping



Test HWS/ R Piping



Fab CHWS/ R piping

Fab HWS/ R piping


14- Sep- 01

02- Nov- 01

Punch List


Roof Syst em


1 1

1 1


06- Aug t o 8- Nov


30- Aug- 01





Look Ahead

PlanCan Do


Should Do

The Last Planner System (LPS) *Master

Schedule


Project Name: Strawberry Run Date:Prepared

By: Eddie Welsh

Activ ity Planned Start Responsible Contract / Materials Labor Equipment Prereq Weather Other Comments

ID Date Party Change Orders AE Complete Submittals RFI's Work

Order micropiles for NO delay 2-Aug NLB Yes Yes Yes X X X X X X X Approval

Complete lagging and tiebacks 2-Aug M&M X X X X X Yes X X X Yes Money

Place rebar template @ wall #4 2-Aug NLB X X X X X Yes X Yes X X

Complete caissons

Run water and sewer to the top of drive 2-Aug NLB X X X X Yes Yes Yes Yes X X Pothole

Install rebar for footing @ wall #4 2-Aug McGrath X X X X X X X Yes X X

Complete caissons

Pour footing for wall #4 2-Aug NLB X X X X X X X Yes X XComplete caissons

Complete V-Ditch 2-Aug Peak X X X X X X X X X Yes Money

Issue rebar shops for garage footings 6-Aug NLB X X Yes X X X X X X Yes receive 7-30

Get elevator shaft shops approved 6-Aug NLB X X X X X X X X X X Shaft - Sept.15

Complete micropiles on line "L". 9-Aug Drill Tech Yes Yes Yes X Yes X X X X X

Form Wall for wall #4 9-Aug NLB X X X X Yes Yes X Yes X X

Install wall #2 9-Aug NLB X X Yes X Yes Yes X X X X Consultant

Install Miradrain 16-Aug Pacific X X Yes X Yes X X Yes X X

Complete shotcrete testpanel 16-Aug NLB X X X X Yes X X X X X

Survey and layout Bldg. 2 16-Aug NLB X X X X X Yes X Yes X X

Survey and layout Bldg. 1 16-Aug NLB X X X X X Yes X Yes X X

Form wall "23" line 16-Aug NLB X X X X X X X Yes X X

DesignActiv ity Description

Sample Look Ahead Plan

Look Ahead

Plan


Weekly Work Plan

Can Do

Will Do


Should Do


Schedule


Prepared by: Eddy Project: Widget Manufacturing Page 1 of 1

Date: 9/24 - 9/28 Date: 10/1 - 10/5

Project Responsible Party MAKE READY NEEDS PLANNING ANALYSIS

Task M T W T F S Yes No Reason for Variance M T W T F

END OF WEEK Sample

Install HWS/R Mains/Branches Ed

Install Gang Hangers for HW & CHW Mains Ed Need Scaffold X X X X

Install Branch Hangers to VAV 1 & 2 Ed Need RFI on VAV Location X X X did not have time to finish

Install Mains in area A Ed Need completed fabrication X X X X

90%, didn't get all fab,

short mat'l

Install Mains in area B Ed Need Core Drill in floor X X X

Install Branch lines to VAV 1 & 2 Ed X X

Install CHWS/R Mains/Branches Ed

Install Mains in area A Ed Need Fabrication X X X X

Install Mains in area B X X X

Install Branch lines to VAV 1 & 2 X X

TOTALS 2 2

TOTAL WORK PACKAGES PLANNED

TOTAL PERCENT PLAN COMPLETE(PPC) 50 %

WORKABLE BACKLOG

Install Branch Hangers to VAV 2 & 3

Place Hangers for VAV boxes

Weekly Work Plan

Perform Work

& Daily Huddles

Look Ahead

Plan


Weekly Work Plan

Can Do

Will Do


Should Do


Schedule


Daily Coordination Meeting

•Opportunity for performers to declare complete on the day's promises

•Keeps the work flowing from one performer to the next

•Timely recording of plan failures and the reasons

•Setting forre-promising

•Time for adjusting plans for the coming day

Perform Work

& Daily Huddles

Look Ahead

Plan


Weekly Work Plan

Review accomplishments

& constraints (PPC)

Action to prevent

repetitiveerrors

Can Do

Will Do


Should Do


Schedule


The Last Planner System (LPS)*


Project Management is all about Communications!

How does LPS do it?

The Weekly Coordinating Meeting

PPC = Percent of Plan Completed

= The planned assignments that are completed within the week (planning period) divided by the total planned assignments.

If not completed each assigned task is tracked, recorded & reasons identified.

LPS Measure of Effectiveness

Last Planner Variance Tracking

©Lean Construction Institute, 2001

WEEK PLANNER # YES # NO PPC % Scheduling/ CoordinationEngineering/ DesignOwner DecisionsWeatherPre requisite Work15-Feb Roy 5 4 56% 1

15-Feb Martinez 4 3 57% 2

22-Feb Roy 6 3 67%

22-Feb Martinez 4 6 40% 2 1

1-Mar Roy 2 1 67%

1-Mar Martinez 6 6 50%

8-Mar Roy 6 3 67% 1 1

8-Mar Martinez 5 4 56% 2

15-Mar Roy 7 4 64% 2


22-Mar Roy 3 3 50% 1

22-Mar Martinez 5 4 56% 1

29-Mar Roy 6 3 67% 2


Totals 70 50 58% 11 1 0 3 1

CATEGORIES OF VARIANCE

Labor MaterialsContracts/CO'sSubmittalsApproval of PermitsEquipmentRFI's SpaceOtherComments on Variation

1 2 Design Change

1 Sub contractor/GC coord.

1 2 Material not ready at shop

1 2 Material not ready at shop

1 RFI # 27 unanswered

4 2 short crew

1 Rain

1 1 Rain

1 1 Waiting on electricians

1 2 Material delivered late

2 material shorts

1 1 1 Inspector was late

1 Shop was down

2 1 Shop down/ Inspector late

10 20 1 0 2 0 1 0 0

Project performance improves with improved work flow.

Work Flow improves with improved Reliability of the work

Reliability comes from the Make Ready process

The Look-ahead Plan and Weekly Coordinating Meetings make work assignments ready to be performed. (Should Do’s become Can Do’s)

The Weekly Work Plan only commits to Can Do Assignments (Will Do’s)

PPC and Constraint Analysis provides feedback for improvement

Summary of LPS

Why Last Planner®?

• Without Last Planner®:– only half the tasks on weekly work plans

are completed as planned. – so called ‘project control’ is after-the-fact

identification of variances, not proactive steering toward objectives.

– projects are a commitment-free zone; promises are neither requested nor made.

(If you can’t say ‘no’, you can’t make a promise.)

The Last Planner System *

Construction Services Company in Business Since 1889.- $500 - 600 Million Project Completed Annually- Largest Constructor in Wisconsin and operates 7 regional offices

throughout the Midwest, Southeast and West.

Used Last Planner on over 200 Projects since 1999

• Shorter schedules, up to 20% reduction on some projects that really commit to the process

• Improved concrete productivity - up to 30%• Improved profitability due to shortened schedules(reduced

general conditions) and improved productivity – “a good amount of our work is negotiated GMP so we also see savings going back to the customer in the form of growing contingencies.”Source: Annual Lean Construction Congress (August 2000/2001)

PPC & Productivity

Productivity

Crews withPPC >50%

Crews withPPC <50%

1.15 times budget

0.85 times budget

©Lean Construction Institute, 2001


It Works!!!

5 mo - $15M

14 mo - $17M

15 mo - $12.6M

12 mo - $4.6M

Boldt LPS Success

0 2 4 6 8 10 12 14 16 18 20

Health Care

Institutional

Correctional

Industrial

Months

Actual Planned

6 mo - $15M

5 mo - $15M

18 mo - $18M

14 mo - $17M

18 mo - $13M

15 mo - $12.6M

18 mo - $5M

12 mo - $4.6M

It Works!!!

SSM Cardinal Glennon Children's Medical Center, St. Louis

A $60 million of upgrades to a functioning facility

Lean Construction Results

• Designs were 100% signed off by the users of the documents. They attribute this to making and keeping commitments.

• The project only had 63 RFIs. At the usual administrative costs of $600 per RFI they are incurring far lower costs> For a usual project of this type they would expect about 1,000 RFIs.

• Safety - had 1.45 ORR compared to Ind. Average of 5.9 ORR• They finished the project 45 days ahead of schedule• Unspent construction contingency was 2.1% of the

construction budget and was shared with owner and Lean partners.

• General Contractor ran job with half of normal staff for same type jobs

• A Preferred job site: morale was high; quality was high; no facility interruptions; subs made a fair profits; and they had fun!

PPC = 74%

Alberici Constructors & Lyon Sheet Metal Works

Percent Plan Complete (PPC) Chart

Rasacaven: Electrical Power Distribution

Dave Koester, BMW Senior Project Manager, on using Lean Production Management on the BP

ULSD Project

• “Every large industrial project in Northwest Indiana and the south suburbs of Chicago has been over budget and has missed schedule for the last 20 years. This method broke the cycle.”

• “We have been striving for employee involvement and empowerment; this method gave us a vehicle to achieve it.”

• “We now utilize the entire bodies of our field crews, not just from the neck down.”

• “If we didn’t use the method on this project, I would have been begging for mercy [from the owner] months ago.”

Courtesy of Strategic Project Solutions

COST CONTROL BP's

APPROPRIATIONS BUDGET (SEE NOTES

1 & 2)

FORECAST ACTUAL @

COMPLETION (SEE NOTES 1, 2 & 3)

FORECAST SAVINGS @ COMPLETION (SEE NOTES 1,3

& 4)

Direct Labor $20,000,000 $15,400,000 $4,600,000 23%

Indirect Labor, Misc. Material & Supplies, Management & Support Staff Expense, Implementation Support

$22,000,000 $21,140,000 $860,000 4%

TOTAL COST $42,000,000 $36,540,000 $5,460,000 13%

NOTES

1) Base Scope

2) Does NOT include Implementation Support Investment of $400,000

3) Includes actual Implementation Support Investment of ~ $400,000

4) at 85% Complete

Kaizen EventIdentify the process

Gather metrics

Identify & Schedule Team

Day 1

• AM - Lean Principles and tools

• PM - Go to Gemba & map the process, look for waste

- Discuss possible changes applying Lean

- Make changes

Day 2

• AM - Observe changes

• PM - Discuss more changes & make them

- Compare metrics (improvement?)

- Summarize - Report to management

QuickTime™ and a decompressor


Kaizen Event - Burn table in welding and sheet metal shop. Already running two

shifts and were not keeping up with the workload demands. The team found ways to reduce the total cycle time (set up + burn + take down), allowing them to run more jobs. The actions they took included:

• Having an apprentice (burn buddy) clear off the table while the burn table operator encoded the next job.

• Having the burn buddy help stage all material so it was ready to be put on the table once it was prepared for the next job.

• Making the nozzles ready to change for the upcoming job.• Clearing off all unneeded scrap material near the table, giving

more walk space. • Moving some racks of specialty metal closer to the use area.• Putting tools needed at the table in an easy place to reach and

marking location for each tool.



Kaizen - Quick & EasyEveryone to come up with improvement ideas

that:• Makes the work safer, easier and work more

interesting• Improves skills and capabilities• Improves the work environment• Improves quality, customer services, schedule and

saves money

Employees are to implement the idea, write it down and share it with supervision and fellow employees.

Also, to look at the ideas others have implemented and to copy and use them where possible.

Kaizen - Quick & Easy

One construction company

405 employees

2005 - Zero Ideas

2006 - 11,000 Ideas Challenge >> 2 implemented ideas per

employee per month!

Everybody - Everyday 100 x1% better than 1x100%

Kanban System

- Dual Bins

- Min/Max

- Replace Signal & card

Part #; 2318F2990Quantity to order: 100Vendor: Sunset SupplyPhone: 555 801-2199

Process Mapping/Analysis

Basic Lean Tools & Techniques

What you think your process looks like:

What the real process looks like:

What your Customer is willing to pay for (Value added)

Process Mapping/Value Analysis

Map the steps for a core process. Include all steps including ‘wait’ times

Do one product line at a time - rectangular straight/fittings

Measure distance traveled & cycle time

Categorize all steps into:

1) Value added

2) Non Value Added But Necessary

3) Non Value added & Not Necessary

Eliminate all #3’s and look for ways to improve #2’s by making the product flow; reduce set-up time & do 5S’s.



New Process - start with only value added steps (9 out of 200) - Only add back real “needed but non value added steps.

They reduced daily mobilization of trucks/vans in yard from 20 - 30 minutes to 5.


Contractors doing value stream analysis

Gained 9 hours a week in technician tool repair time

Reduced non-valued added steps in process by 4%

A mechanical contractor save $40,000 in one event.

Five S’s Muda Walk - “Chalk Watch” Last Planner System Kaizen Event Kanban Poka-Yoke Process Mapping/Value Analysis Rules of Release Spaghetti Chart Visual Controls A3 Reports


Use Rules of Release

Release Order to Fabricate

Kit/Fabricate/Assemble

Deliver Job To Site

Rules of Release Materials available - not necessarily on-hand but must be confident that will be on-hand when actually needed. Latest spool drawing revisionVerified need date in drawing trackerScheduled - resource loaded/ available. (Shop Supt.)Special equipment needs identified. (Shop Supt.)

Rules of Release Material assembled and packaged completedRelease from site (verified due date)Shop Checklist (Shop Supt.)All shipping information provided (Shop Supt.)Packing Slip completed (driver)




Rules of Release for an Engineering Design Company

Source: Peter Dumont, P. E. Application of lean Principles to Improve Engineering Performance, LCI Congress, Oct. 2008

Observations – look for waste Use a spaghetti chart

Get Roomorder

Getbagel

Cut bagel

Toastbagel

Get butter & Cream Cheese

Get juice cup

Pourjuice

Get knife& napkins

Check order

DeliverTo room

StorageRack

SpiralDuct

machine

Table

Table

StorageRack

PlasmaCutter

StorageRack

Roller

SpotWelder

Swedge

Beader

Sealing &

Painting

Parts, odds & endsRack

Office & Files

Lay

Down

area

Lay

Down

area

Lay

Down

area

Lay

Down

area

Assemble & Spot weld

Lay

Down

area

Finished Duct Lay Down area

Spiral Fittings FlowStraight Spiral Flow

Finished Duct Lay Down area

D

E

L

I

V

E

R

Y

Loading to Trucks



Travel of People & things

Visual Controls

Purpose: To put in plain view all tools, parts, plans, schedules and performance indicators so everyone can see at a glance what is happening.

Posted daily/weekly schedules & progress

Board Meeting

Color code types of concrete / pipes

Mark pipe/duct - one straight line

Make it so can see if “normal” or?



Job Schedule Board & % OTD Plus Employee Skills Match

Elements of A3 Thinking

Logical thinking process Objectivity Results & Process Synthesis, distillation and visualization Alignment Coherence within and consistency across Systems Viewpoint Sound Decision-Making Root Cause Analysis

A3 Report Title and Description

Problem Definitionand Description

Problem Analysis

Implementation Plan

Results

Future Steps

Basic A3 Flow on 11 x 17 Paper

A3 Example - Major Decision

Five S’s Muda Walk - “Chalk Watch” Last Planner System Kaizen Event Kanban Poka-Yoke Process Mapping/Value Analysis Rules of Release Spaghetti Chart Visual Controls A3 Reports


Which tools might work for your company?

Value vs.Waste

Pursue Perfection

Pathway to Lean

The Value Stream

FLOW

PULL

5S’s

LastPlanner

Advanced Lean Approaches

Target Value Design

Set based design

Lean & IPD

Lean & BIM

Target Value Design

Design is principally a social activity. -- Gregory Howell

Dick ThompsonStan Chiu

LCI Southern CaliforniaMay 18, 2009

The Big Questions for us

• What is Target Value Design?• How has it been applied?• What is the value to our industry

and our customers?

What if?

•Rather than estimating based

on a detailed design, we design

•based on a •detailed estimate?

Source: Malcomber, Howell, Barbiero

• Rather than evaluate the constructability of a design,

we design for what is constructable?

What if?


• Rather than design alone and then come together for group

reviews and decisions, we come together to decide then

•design to those decisions?

What if?


• Rather than narrowing choices to proceed with design,

we carry solution sets far into the design

process?

What if?


Traditional Project DeliveryLevel of Common Understanding

Comm

onU

nderstanding

CM/GC Hired

Major Trades Hired

Pre-Construction Services

Architect Hired

Engineers Hired

≤100%

SD DD CD

Construction

Source: Will Lichtig

Integrated Project DeliveryLevel of Common Understanding

Time

Comm

onU

nderstanding

CM/GC Hired

SD DD CD

Construction

Architect Hired

Engineers Hired

100%

Major Trades Hired

Pre-Construction Services

Source: Will Lichtig

CaliforniaPrison Receivership

Three Teams, On-Copetition

• 10,000 Bed Program

• 7 Facilities• 5,000 medical beds• 5,000 mental health beds

• 24 month construction schedule for each

• Staggered three month starts

The TVD Process

Kickoff

Vision

Methodology

Teams

Interviews

Field Research

Share Stories

Factors

Charettes

Creative presentations

Winnowing

Design

Build the hybrid

Build Model

Evaluation

Vision Research HybridExtremes

Recombine

Design

Build the hybrid

Build Model

Reliable Backup

What are the Work Products?

Big Ideas Extreme SetsBalanced

Hybrid Selected Design

Kickoff

Vision

Methodology

Teams

Interviews

Field Research

Share Stories

Factors

Charettes

Creative presentations

Winnowing

Design

Build the hybrid

Build Model

Evaluation

Vision Research HybridExtremes

Recombine

Design

Build the hybrid

Build Model

Reliable Backup

Set-Based Design is not Point Based Design

Point-Based Design Set-Based DesignFigures from Ward et al. 1995

A Set Based Methodology

The Integration Events

The Innovation / Risk Balance

The Innovation / Risk Balance

Collaboratively planned

• All plans are forecasts• All forecasts are wrong • The longer the forecast, the more

wrong it is• The more detailed the forecast, the

more wrong it is• Plan in greater detail as you get

closer to doing the work• Produce plans collaboratively with

those who will do the work• Reveal and remove constraints on

planned tasks as a team• Make reliable promises • Learn from breakdowns


Conditions of Satisfaction

Profoundly Impact “Big 4” factors Through Synergistic

InnovationYet

Balance the FPS Core Values And Operational Principles

TVD Targets

Goal: Reduce program cost by $1.5B (to $ 6B)

without compromising delivery of care

Work Clusters

Realtime Metrics

Integration Events

Collocation

Big Ideas

8 Big Ideas38 Rapid Response

TARGET VALUE DESIGN BIG IDEAS Decision Y/N COUNT SCOPE SCHEDULE COST CAPITAL COST OPERATION STAFFING COMMENTS Assignments

$23M (471,912SF)

275,507SF/749,067SF = 37%

63% Remaining*749,067=471,912

SF*$493.76/SF2. Reduction of GSF to 6.0A - Create Facility to FPS Sq. Footage Y 30 $111,548 MED (3-5 WEEKS) $35-$40M MED (3-10%) LOW (0-10 FTE) * Number 2 Vinson Johnson

3. Reduce program GSF an additional 10%. Reduction to FPS 6.0 Y 30 $105,000 MED $26-$30M MED (3-10%) LOW (0-10 FTE) * Number 3 Steven Powell4. Maximize Regionalization/Regionalization/Call Center: Investigate opportunities for operational efficiency via regionalized systems, information management and JIT scheduling.

Y 5 $25,850 N/A $1.4-2.1M $6.85M 6% * Number 4 Evelyn Warner

5. Benchmarking/Lean/Productivity Metrics Y 2 $86,150 N/A $5.6M-$7M $22.8M 20% * Number 5 Craig Greenough/Debbie Hoffman/Patti Crome

6. Use modular/prefabricated structures for Housing & Cluster Supports Y 2 N/A MED (3-5 WEEKS) $12-18M N/A N/A * Number 6 Kaushal Diwan/Ron Migliori

7. Modular meal service/Pre-tray entire system/pre-packed convenience foods Y LOW N/A N/A <$14M/Annual> LOW * Number 7 Tom Hoerstman

8. Outsourcing: Meals provided by vendor. Y 10 <$3.3K> 6 WEEKS $10M $3M HIGH * Number 8 Tom Hoerstman

Rapid Response (#1 - 11)

1. Centralize the CUP. Y 11 Neutral Neutral $5M N/A N/A Low Hanging Fruit Bob Levine/Craig Greenough/Tim Belke

2. Question "N+1". Redundancy in system Y 13 N/A N/A $2.4-$4M MED (3-4%) N/A Low Hanging Fruit Tim Belke/Craig Greenough3. Multi-use rooms Y 16 MED LOW LOW LOW LOW Low Hanging Fruit Scott Wing

4. Reduce building hardness Y 21 Neutral Neutral $2.8-$4.2M N/A N/A Low Hanging Fruit, Security included on research

Bob Levine/Ron Migliori

5. Eliminate dining rooms/All dining in day rooms or bedside Y 28 6,600SF Neutral HIGH, $3.4 MILLION $300K HIGH, 21 FTE Low Hanging FruitKaushal Diwan/Tom Felker/Scott Wing/Claudia

Latchman

6. Relaxation of Basis of Design (BOD) Y N/A N/A $3-6M $50K/YR N/A Low Hanging Fruit Craig Greenough/Tim Belke

7. Achieve a better ratio of SF to perimeter Y $40,000 N/A $5.3M N/A N/A Low Hanging Fruit Craig Greenough/Bob Levine

8. Rehab: Education self/distance learning Y 3 0 N/A MED, $5-20M HIGH 2 FTE Low Hanging Fruit Scott Wing

9. Executive conference facilities (training room outside) Y 10,000 LOW $470,000 LOW LOW Low Hanging Fruit Vinson Johnson

10. Rehab/Physical Rehab move KIT to Unit - NOURISHMENT CENTER Y <1,320> N/A $400,000 N/A N/A Low Hanging Fruit Claudia Latchman

11. Laundry - Construct production Laundry, base condition" outsource. Y ADD SF TO BUILDING ADD TIME TO SCHEDULE <$16M> MEDIUM, $6M HIGH, 64 FTELow Hanging Fruit (Calc. Only)

Recalc on PIA, verify math. Tom Felker

PENDING RESEARCH AND ANALYSIS

Hybrization of HVAC Y N/A N/A $0 $500-700K N/A

Room Standardization/Space/FF&E Y 8 N/A N/A N/A LOW LOWCan gymnasium be eliminated on all sites? Y 14 $18,450 LOW (0-2 WEEKS) $6-$8M LOW LOW

Service center located centralized to optimize robotic AGV delivery Y 21 LOW, 7,000 SF NO CHANGE N/A N/A LOW (0-10 FTE) Review A3 on outside perimeterLocate Mental Health & High Acuity to their own sites Y N/A LOW TBD MED (3-10%) MED (11-35 FTE)Single room buildings/All dorm buildings Y Neutral Neutral $1.7M Neutral Neutral

Improved indoor environmental quality Y N/A N/A <$17.1-20M> $3.8M/YR LOW

Broadbanding/Alternative Staffing Y 10 LOW N/A MED HIGH HIGHWork performed by unions. Receiver is not

going to take on the unions. Avoid legal issues.

Haunani Henry

Organize D&T into procedure, diagnostic, clinic/clinical centers. Modify the size of the mental health clinic to maximize patient access to necessary levels of care & reduce costs?

Y 5 18,178SF LOW (0-2 WEEKS) $8.7M $1.3M $1m, 9FTE

Self Care laundry - Laundry in Day Rooms Y 10 ADD SF TO BUILDING NO CHANGE $140,000 COST MEDIUM, $2.1 MILLION NO STAFF REQUIREDCambra mentioned that PIA is already

contracted to do laundry service for the facilities.

Medication Tracking: Track medication location/Patient usage and distribution -- 1 N/A N/A N/A N/A N/A Patient Care impact? Terry Hill Review.

Incentives for wellness/Effective Rehab Programs -- 5 N/A N/A LOW LOW LOW

Synchronize resources on research. Do not pay for services twice. Extract information from team working rehabilitation. Support

for idea: Clarify who is doing work.

How can the housing setting allow clinicians maximize flexibility to assess and evaluate patient status to allow movement and transfers that are supportive of their therapeutic treatment? Of primary concern is the careful coordination of DMH/CDCR handoffs?

-- LOW N/A LOW N/A LOW Not enough information

Self Care medications - MEDICATION VENDING -- N/A N/A N/A Not enough informationRFID Asset Tracking/Inventory & equipment locator. Y 1 0-10K SF N/A $0-5M 0-3% 0-10 FTE See David NoronhaPoint of Use Material Mgt/Point of Use MMIS and JIT Mgt. Plan. Y 1 0-10K SF N/A $0-5M 0-3% 0-10 FTE

Benchmark grossing factor vs. net Y 2 0-10K SF N/A $0-5M N/A N/A

Warehouse: AGV "tote" delivery from central D&T/CUP/Warehouse Y 3 0-10K SF N/A $5.1M-$20M 0-3% 0-10 FTE Min. Energy

Produce entrée only by vendor Y 10 HIGH, 43,000 S.F. NO CHANGE HIGH, $4.6M MEDIUM, $1.9M MEDIUM, 20 FTE Combine with other effort. Tom Felker

Information Technology - Telemedicine Y 13 0-10K SF N/A $7M $4.5M 20 FTESee David Noronha, Terry Hill review/collaboration needed

Information Technology/Enterprise content management, records storage. ** MUST HAVE FOR TELEMEDICINE TO BE SUCCESSFUL. Y 11 0-10K SF N/A $0-5M

Low* More information required

Zero - SourceCorp staff will become scanners Terry Hill review

Design best practices to increase and support recruitment, retention & satisfaction.

-- 4 <LOW, $0-10K> N/A <LOW, $0-5M> MED (3-10%) N/A REALITY CHECK: Linked to Staffing IEQ, reactivity cost.

Consolidate 7 to 6 sites, without exceeding the 1:64 ratio. Distribute/add units to clusters. Shift clusters together reiterating the connectivity of the Mall concept and compressing the site. Can we deliver without compromise a continuum of care based upon a focus for a simplified prototype.

Y 28 High Delete construction of 1 site.1: $336M 2: $434M $335M Program Savings

Reduce site driven staffing. Reduce custody staff 400 FTEs. Catherine Knox

BIG IDEAS DROPPED FROM CONSIDERATION

Make a High Acuity site with traditional bed tower N N/A LOW TBD MED MED (11-35 FTE)Reduce EOP bed count by 600 N $90,000/per bed Conflicts with Receiver's Program

Minimize private rooms in SGP. N 17 3,000SF N/A $1.7M N/A N/AReduce % of private rooms. Support direct supervisions. Number of rooms that drop. Analysis get to 25 - what is safety analysis.

Create a twin site Y 3 High High1: $260M 2: $530M $37M Prototype May be resource ted.

$27.8M + other operating expenses

$27.8M + recruiting training retention

Stan Chiu/Jeff Rock/John Paul Peterson/Vinson Johnson

* Number 1$180-190M + escalation

EXTREME VALUE DESIGN (#1 - 8)

1. Consolidate 7 to 6 sites, with 1:80 ratio. Distribute/add units to clusters. Shift clusters together reiterating the connectivity of the Mall concept and compressing the site. Can we deliver without compromise a continuum of care based upon a focus for a simplified prototype.

Y 28 Overall Savings = 24-30 months

The Three Sets

The Whole Enchilada Safe Set Making 7 Work

1. Consolidate 7 to 6 sites, with 1:80 ratio. 180 190

2. Reduction of GSF to 6.0A35 40

3. Reduce program GSF an additional 10%. 26 30

4. Maximize Regionalization / Call Center

1.4 2.15. Benchmarking / Lean / Productivity Metrics 5.6 7

6. Use modular/prefabricated structures for Housing & Cluster Supports

12 18

7. Modular meal service/Pre-tray entire system/pre-packed convenience foods

na na8. Outsourcing: Meals provided by vendor. 10 10

TOTAL BIG IDEAS: 270.0 297.1

TOTAL RAPID RESPONSE:27.77 53.77

TOTAL: 297.8 350.9

1. Consolidate 7 to 6 sites, with 1:80 ratio. 180 190


3. Reduce program GSF an additional 10%. 26 305. Benchmarking / Lean / Productivity Metrics 5.6 7


12 18TOTAL BIG IDEAS: 258.6 285.0


TOTAL: 286.4 338.8


3. Reduce program GSF an additional 10%. 26 30

4. Maximize Regionalization / Call Center

1.4 2.15. Benchmarking/Lean/Productivity Metrics 5.6 7


12 18

7. Modular meal service/Pre-tray entire system/pre-packed convenience foods

na na8. Outsourcing: Meals provided by vendor. 10 10

TOTAL BIG IDEAS: 90.0 107.1


TOTAL: 117.8 160.9

Target: $123M

Knowledge CaptureA3 No Title: Champion Collaborator Sponsor Custome r Group

Katherine Blume Dean Read Will Lichtig Core Group

Discipline Element Date Opened Path Forward Date

8.29.08 9.5.08 Idea Development Sponsor Identified Customer has Accepted A3 Development Integration

Se ction 1 - Background Se ction 4 - Additional re quire me nts

Possible Customer Groups 1. Joint Venture Speaking with the voice of the owner.

2. Core Group - Representing the goals of the program.

3. The element team.

4. An IPD team.

An A3 project administrator will be identified that manages the A3 log for all four teams. This will be Kim Ehresman from DPR

Each of the 4 teams will identify an A3 coordinator. H3 Coordinator: CMHH Coordinator: M. Jackson DPR Coordinator: K. Blume

Se ction 2 - Curre nt Condition The role of the team A3 coordinator is:

Until now, there was no documentated process for using A3s as a decision making tool. 1. Ensure that any team member authoring or collaborating on an A3 has been trained in the A3 thought process.

The process would need to address the following concerns: 2. The A3 coordinator will confirm that all interested parties are involved with each A3.

1. Each A3 needs to have a customer that will use the knowledge. Each A3 will include an assesment by the team of how the A3 issues impacts the CPR system values - Ranking will be -1, 0 or +1.

2. Each issue in A3 should be measured against the values of the project.

3. The A3 guidelines should facilitate an A3 mentoring program within this team. Se ction 5 - Unre solve d Issue s

4. Customers should use A3s to make knowledge based decisions. 1. What is the process to collapse the set or force rank on the set?

5. For A3s that compare design sets, attributes of the sets should be identified against which the proposals are compared. 2. Should the ranking of design options be different for each IPD team?

6. The A3 guidelines need to define the last responsible moment for a path forward.

7. An A3 can incorporate a single design option or multiple design options. However, A3s that evaluate similar or connected sets.

design issues should be grouped into design. The integration event for all A3s that are in the same set would occur at the same time.

Se ction 3 - Proposal Se ction 6 - Path Forward/Re comme ndations

1. The Core Group approves this process and makes it visible to the four teams.

3. An A3 process team should be identified that has the responsibility to “check” this process.

4. The A3 process team should survey the customers of developed A3s over the next three weeks to identify:

a. If the process is effective.

b. Identify opportunities to improve the process.

5. The process team will make an assessment about the effectiveness of the process.

6. The process team will report back to the Core Group on Sept 26th

with their assessment of the process. Se ction 7 - Follow-up

Schedule Efficiency Patient Firs t Patient & Staff Safety Lifecycle cost

1 1 0 0 0

Additional Collaborators

G. Howell, C Hutchinson, Kris tin Hill, Daljit Gill, Joe Madda, Stan Chui, Bart Robeson, J Townsend, J Wellenstein, Donna Grammas

CPR Program Value s

Guide to Ge ne rating, De ve loping, and

De te rmining a Path Forward for A3's on the CPR proje ct

The four IPD teams in this co-petition have made the commitment to use A3s to analyze issues that may shape the

design and/or construction of the healthcare facilities. To ensure that the A3s become a beneficial tool for informed

decision making and approvals, a process must be put in place that provides structure for how and when A3s are

developed. The process should ensure that all parties affected by an A3 are allowed to collaborate in the

development and path forward of the A3. The process must also clearly define the last responsible moment when a

decision of the path forward on an A3 should occur.

2. A revised A3 format with collaborator, sponsor, customer group and approval blocks is issued to the groups. The format on which this

A3 is written represents the revised A3 format.

A3 Status

1.

•Identify A 3 Issue.•Identify champion and colloberators that will develop the A 3.•Develop preliminary A 3 and set specific attributes that will facilitate comparison of multiple design sets.

2.

•Identify sponsor for the A 3. •Sponsor must be an Element L ead or Core Group Member.•Sponsor confirms A 3 concept has applicability to the program.•Sponsor confirms A 3 team has a Joint V enture member.

3.

•Identify Customer Group - Sponsor makes a request for a group to become the customer of the A 3.•Customer accepts request to become the customer and identified responsible person for the A 3.•Customer determines path forward process for the A 3 issue.

4.

•L og A 3 into Set Based A 3 L og.•Items with customers are logged with A 3 number and preliminary values assessment.•Items without customers are logged without an A 3 number.•Issues are grouped by discipline and design set.

5.

•Invite A dditional Collobrators & Conversations.•Draft A 3 posted on Webex and on co - location "New A 3" wall.•Invitation is issued electronically and visually for all interested parties to collaborate on the A 3.

6.

•Develop A 3. •Champion & Colloborators continue to develop A 3 knowledge as required to support a path forward.•Customer develops pull schedule to determine last responsible moment for path forward.

7.•Identify Integration Event at which a path forward will be decided by the customer.•Customer pushes A 3 to a path forward which is communicated to the 4 teams.

• Decisions must be made based up on the importance of advantages

• A disadvantage to one alternative is an advantage to alternative option

• For every dollar spent we need to identify that advantages that the money gets the project

CBA: Value based decisions

Choosing By Advantages Study of: Heating Hot Water SystemAlternative 1 Alternative 2

Central Plant Heating Hot Water System

Distributed Heating Hot Water

Factor: Square feet of Mechanical Space Required

Criteria: Attribute 3200 square feet5100 sq ft required/17

roomsAdvantage 1300 Sq Ft. 2

Factor: Access for Maintenance

Criteria: Attribute Outside secure perimeter Inside secure perimeterAdvantage Outside rather than in 4

Factor: Quantity of Boilers & Standby

Criteria: Attribute 3 duty plus 1 standby 20 duty +7 StandbyAdvantage Less total boilers 5

Factor: Ability to do Boiler Stack Heat Recovery

Criteria: Attribute10% increase in boiler

efficeincy Not requiredAdvantage Reduction X therms 8

Factor: Pumping Energy

Criteria: AttributeMore required due to long distribution runs

Less required due to shorter piping runs

Advantage 500,000 KwH per year 10

Factor: Construction Schedule

Criteria: AttributeLonger due to site

distributionShorter - no site distribution

requiredAdvantage 2 weeks 1

Total Importance 19 11Capital Cos t

LAB

Process

15

Waiting Area

Process

Q

Patient Check out and Scheduling

Process

Q

Phlebot

Process

Q

Draw Station

Process

Patient Leaves

Process

Process

StepsWait time

TimeVA Time

TimeVA Time

TimeVA Time

TimeVA Time

TimeVA Time

TimeVA Time

Time track

Space

equip

require

Staff required

Process Design / Improvement

Day before patient gets schedule

Process

Patient leaves housing unit

Process

Q

Travel Time

Process

Q

Patient arrives at reception

Process

PMU

Process

Q

See other VSM

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Current State

DENTAL

Process

Q

Waiting Area

Process

Q

Recover &

ED

Process

Q

TX

Process

Q

Dental Chair

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

LAB

Process

Q

Waiting Area

Process

Q


Process

Q

Phlebot

Process

Q

Draw Station

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

IMAGING

Process

Q

Waiting Area

Process

Q

Changing Rooms

Process

Q

TX

Process

Q

Changing Rooms

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

MENTHAL HEALTH CLINIC / SA

Process

Q

Group Room /

Individual Room

Process

Q

Patient Leaves

Process

Q

Check Out /

Reception

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

PT / OT

Process

Q

Waiting

Process

Q

Patient Check out

and Scheduling

Process

Q

TX

Process

Q

Treatment Space

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

MED CLINIC

Process

Q

Waiting Area

Process

Q

Physician

Assessment

Process

Q

Nursing

Assessment

Process

Q

Exam Room

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

PROCEDURES

Process

Q

Waiting Area

Process

Q

TX

Process

Q

Pre - OP

Process

Q

Vital Signs

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

TTC

Process

Q

Waiting Area

Process

Q

Exam Room

Process

Q

Vital Signs

Process

Q

Triage

Process

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Time

VA Time

Q

Patient Check out

and Scheduling

Process

Q


Process

Time

VA Time

Q

Patient Leaves

Process

Time

VA Time

Time

VA Time

Q

Patient Leaves

Process

Q

Patient Leaves

Process

Time

VA Time

Q

Patient Leaves

Process

Time

VA Time

Q

TX , Test , Etc

Process

Time

VA Time

Q

Patient Check out

and Scheduling

Process

Time

VA Time

Q

Patient Leaves

Process

Time

VA Time

Q

Post - OP

Process

Time

VA Time

Q


Process

Time

VA Time

Q

Patient Leaves

Process

Time

VA Time

Q

TX - Testing

Process

Time

VA Time

Q


Process

Time

VA Time

Q

Patient Leaves

Process

Time

VA Time

DESIGN NOT ES :

• Aggregation / Collapsing• Reduced / Distribute waiting queuing area

• Unstructured waiting

• Check - in without space

• Electronic tracking card scheduling

• Eliminate secure reception

• Collapse secure holding room• Weigh in alcove

• Real - time scheduling

• Need room tracking station


Day Before Patient gets Schedule

Process

Patient Leaves Housing Unit

Process

Q

Travel Time

Process

Q

Patient ArrivesCheck In

Process

Q

Travel

Process

Main PatientExam Room

Process

Electronic Check in Patient goes to Room and wait

Electronic Board / Wayfinding Desk

TimeVA Time

TimeVA Time

TimeVA Time

TimeVA Time

Time

VA Time

Time

VA Time

Services to Patient

Menthal Patient

Process

TimeVA Time

Waiting for Clinic Staff

Time

VA Time

Q

TX, Imaging – CTSpecial Clinic

Follow up

Process

Real Time Epoe in Room

Time

VA Time

Q

Patient Check Out and Scheduling

Process

Electronic Schedule Appt.

Time

VA Time

Q

Patient Leaves

Process

Medication to Mall

Time

VA Time

Universal Design Exam room

Speciality Carts


Alternatives

Continuous Improvement

12/31 Baseline Target Value 7 Site Prototype

Scope 860,615 GSF 655,000 GSF 690,717 GSFSchedule 28 Months 24 Months 28 MonthsCost-Operating $150,666,592 $145,000,000 $144,239,489Staffing 1372 FTE 1300 FTE 1318 FTE

Results: 3/3/2009

Results: 3/3/2009

Design to Budget / Schedule

Site Bldg Fit-out

Bldg Envelope

Mechanical Electrical

Sustainability

BIM

Leader: Architecture

Team: Structure

Music Acoustic

Mechanical Electrical

Leader: Architecture

Team: Music

Acoustic Mechanical

Electrical

Leader: Music

Team: ArchitectureMechanical

ElectricalAcoustic

Leader: Mechnanical

Team: Architecture Structural Acoustic

Music Electrical

Leader: Electrical

Team: Mechanical Architecture

Structural Acoustic Music

Source: Boldt Construction

1. Original Concept Construction Budget2. Start of Target Cost Process3. Added Scope of Monumental Stairs, Canopy and Trash Enclosure4. Increased Steel Cost5. Contingency for Design CompletionEstimating Removed from Target Cost Estimate6. Flashing / Sheet Metal and Structural Steel BuyoutAmendment to IFOA7. Savings from Aggressive Buy out8. Projected Savings from Field Productivity

10/06 4/08

Sutter Fairfield Medical Office Building

Increase Throughput by 50%

Reduce FTE’sby 40%

Reduce Square Feetby 30%

Reduce Time to Buildby 50%

Reduce Natural Resource Useby 25%

52

42

35

53

28

Sutter Prototype Hospital

takeaways

• Understand players are beyond team that need to be integrated (BOD, Leadership)

• Carrying design through to bid gives false sense of value• Independent cost estimation valued by leadership• BIM as integrating tool• Collaborative personality critical• Contract challenges require committed client• Work at the right level – not design to solve op’s issues• Concurrent Operational, Program, Design, Constructability:

high opportunity but high stress

Target

Value

Design

Process

Design

Process

Design

Knowledge

Based

Design

Visionary

Leader

Expert

Workforce

Responsibility

Base Planning

& Control

Standardization

A3’sCBA

Site Visit /

S.M.E

Site Visit /

S.M.E

Last

Planner

PDCA

Set Based

Design

5 Whys

Putting the pieces together

LeanIPDO

rgan

izat

ion

Com

mercial Term

s

Operating System

Revamp Project Governance

OwnerStakeholder

CM/GC PMArchitect PM

Owner’sRep

Senior Mgt.

Senior Mgt. Senior Mgt.

Senior Mgt.

Core Group/Senior Mgt.

Sharing of Risk

Re-define basis of financial responsibility

Owner takes first dollar risks

IPD Team negotiates level of risk (profit)

Fee informed by level of care and quality required

Owner $$(IPD Cont.)

IPD $$(Profit)

Negligence

(Insurance $$)

orOwner

Sharing Project’s Innovation

Incentive Pool =

Metrics

Owner =

TargetCost

ExpectedCost Savings $$

Sharing Project’s Production Success

Incentive Pool =

Metrics

IPD Contingency

Savings

Cost of Work

Savings

Owner =

Savings $$EstimatedMax Price

Actual Cost

IPD Contracting

• Options– IFOA = Integrated Form of Agreement– AIA IPD Agreement– ConsensusDocs– Other: Contract Rider, Behaviors

• Plus = Alignment of Parties• Deltas:

– Attorneys and Risk Management not necessarily on board

– Insurance products playing ‘catch-up’

Transformation Principles

• Assemble a high-performance cross-functional team as early as possible

• Focus the team on collectively exploring the project’s underlying human concerns and assisting the customer to define “value”

• Have the right person, do the right thing, in the right level of detail, at the right time (last responsible moment)

Transformation Principles

• Create a commercial structure that rewards the team for creating value, eliminating waste, and optimizing the project -- not discrete pieces

• Relentlessly innovate and continuously improve with the goal of increasing value and eliminating waste

Commercial Opportunities

• Pool Contingencies• Trade Contractors’ Compensation• Create Proper Incentives (Rewards)• Create “Enterprise” Risk Sharing• Eliminate trade-level GMPs• Eliminate Project GMP

Relationship between BIM and Lean

BIM facilitates pursuit of the Lean Ideal.Both BIM and Lean work best with

organizational integration and aligned commercial interests.

Lean planning and control helps BIM work better.

BIM is a tool, but a complex tool that impacts the design and execution of socio-technical systems.

Lean and BIM need each other!

SAT’s, Study Action Teams – Use Lean Books and/or Articles for discussion and alignment of team goals and values.

Team-Building – Build camaraderie in collaborative teams – open up dialogue by getting to know team members and have some fun.

Team-Building and SAT’s

Basic Rules to improve Construction

Focus - 1. Keep the Crew Installing 2. Reduce Inventory 3. Reduce Costs

Where to start?

Define a Key Process - Value Stream Map it Identify the Steps - value added/non value added

- Who Touches - Requirements

Define/verify VALUE as seen by the customer> Improve Quality - Eliminate Defects- Where do we not meet the customer’s requirements?- DON’T GET IT > DON’T MAKE IT > DON’T

SEND IT> Do Root Cause Analysis, do Poka Yoke

Does Value Flow - so one step leads immediately to the next with no batches?

> Look at handoffs - Define Rules of Release

Eliminate Treasure Hunts - Organize the Workplace > Use 5S’s, Spaghetti Chart & Kanban

Try something

Where to start?

Plan Do

Act Check

No Muda - Attack waste with a passion like Ohno > Use the ‘chalk watch’ & Reduce inventory

Standardize process step, tools & equipment

Implement Quick & Easy Kaizen >>2 implemented ideas per employee per month!

Reduce Inventory> Use Kanban> Eliminate stashes> Use LPS

Where to start?

Improve Project Management

Learn & Apply Last Planner System * Pull Schedule Look Ahead Plan Weekly Work Plan Measure PPC Do Constraints Analysis

Where to start?

© Lean Construction Institute 2003

Implementing Lean on Projects Structure the project organization to engage downstream players in upstream processes and vice-versa. Allow resources (money, personnel, schedule float, etc.) to move across organizational boundaries in pursuit of the best project-level returns. Encourage thoughtful experimentation; explore adaptation and development of methods for pursuing the lean ideal. Celebrate breakdowns as opportunities for learning rather than occasions for punishing the guilty. Implementing Lean on Projects

Becoming a Lean Enterprise: Getting Started

Don’t over-theorize. Learn by doing.

Start with your own work where you have the power to make changes.

Stabilize processes by making work flow predictable before attacking waste (muda).

Change the company culture by changing management practice.

Start with demonstration projects to adapt concepts and techniques to your situation, to provide proof of concept, to develop competence and confidence, and to build internal advocates and external partners.

No sense of urgency Lack of leadership Not communicating with employees Not creating short-term wins and

celebrating Seeing this as a Quick Fix Not anchoring the Lean changes with the

rest of the culture & systems

Barriers to Implementing Lean

The Real Barrier is thinking Lean can’t work in Construction!

Various Tools

Systematic use of tools & training

Lean in culture, people & enterprise

Levels of Lean Implementation

Companies ultimately progress or stall at these levels.

To get people to change:

What + Why + Believe

Change Management

20 - 60 - 20 Rule

Are you in the boat?

Critical

Against

Virtually

Everything

People Equation

Involvement + Communications=

Engaged Employees

Toyota’s goal:

“Give customers what they want, deliver it

instantly, with no waste.”

What do you want to do?

Every successful Lean transformation began with a passionate leader - Are you that Leader?

Documents

Lci la chapter lean intro 071410 no pics