DLCC Ltd Think Lean

The Strategic Deployment of

Lean across Highways England

LEAN IN THE PUBLIC SECTOR 2019 DOHA

Derek Drysdale

Director and Trustee LCI-UK

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Smart Motorways

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England’s economic success depends on

the Strategic Road Network

4

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RIS1 Enhancements – Delivering for

customers

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Road Investment Strategy

England’s largest road investment programme for a generation

Highways England’s Lean deployment strategy key element to:

• to develop a culture for continuous improvement

• to be safe and to deliver increased customer value and efficiency

• deliver a greater number of projects and a better quality of service

• drive down unit cost and eliminate waste

Capital efficiency savings of £1.212bn by 2020

“We will implement a Lean deployment strategy

that will build a culture of continuous improvement

throughout Highways England and its supply chain

to deliver increased customer value and efficiency

saving in support of the Strategic Business Plan.”

Highways England Delivery Plan 2015-20

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Sector Productivity Challenge

The UK construction sector has been left behind, with an overall growth of just 0.1% since 1947 (compared to 3.5% in manufacturing)

The UK Construction industry continues to lose ground - particularly when compared to manufacturing and aerospace

Manufacturing

Construction Year

Pro

du

ctiv

ity

McKinsey Global Institute, Feb 2017

DLCC Ltd Think Lean confidential

MAJOR PROJECTS

Olympic

Stadium

Est. £280m

Overall £700m

The Shard

Est. £350m

Overall £435m

BBC Headquarters Refurb

Est. £991m

Overall £1.1bn 6 year delayed

Wembley Stadium

Est. £757m

Overall £1bn 1 year delayed

HS2

Est. £56bn

Overall £80bn+

TOP 10 MAJOR PROJECTS OVERRUN BY £17bn

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RIS1 (2015-2020) – Lean in everything

Changing the social

context of roads

Enhancements for

our neighbours

Fundamental

delivery

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Highways England’s Lean Challenge

At the start of the RIS 1: – A challenging efficiency target of

£1.2bn.

– A target to deliver £250m (20%) of this using Lean deployment.

The aim is to change the way the sector works – collaborative planning, performance boards, active problem solving and a focus on customer value

£0

£50,000,000

£100,000,000

£150,000,000

£200,000,000

£250,000,000

Contribut

ion so far

RIS 1

Target

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Lean Deployment based on the Toyota Production System

The Client must engage with the Supply Chain to

achieve continuous improvement

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Defining Lean Thinking?

PULL

FLOW

VALUE

STREAM

CUSTOMER

VALUE Understanding and agreeing exactly what your customer needs

Understanding all your processes

Pulling value through the chain

Smoothing the flow

Continuing to attack waste PERFECTION

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`HE Lean Deployment Timeline

2007

Nichols

Review

HALMAT

introduced

2012

2009

2013 2011 2010

First Supply Chain

Secondees join team

HA Lean team

formed

2015 2014 2016 2017

Exec agrees to

Deployment across

business

Benefits framework

introduced

2020

£250m target Cook Report

HMG Agree to

Form Highways

England Benefits framework

introduced

ORR set first

Control period

2015-20

Lean Strategy

/Deployment plan

/Lean contribution plan

Agreed with CEO

£300m efficiencies

To date! – on target

Graham Dalton

Views Boston Manor

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Highways England Lean Deployment

HA Business Maintenance

Major Projects SMART Motorways

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Photo of

new

motorway

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Improving incident clearance rates A KPI target of 87.5% clearance of incidents within

an hour

Visual performance management and problem solving techniques engaged and empowered teams

Data based decision making contributed to the team achieving a greatly improved clearance rate to improve our customers’ journey

Lean

interventi

on

90% 87.5

% 85%

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Lean – A14 Cambridge to Huntingdon The only £1bn+ UK government sponsored

infrastructure project on budget and on schedule

Flagship for Lean deployment – Lean is at its core

– Techniques used throughout supply chain tiers

– Visual management throughout

£20m efficiencies currently forecast e.g. - Archaeology:

– Improved their approach to permit to dig

– Improved use of rare archaeological skills

– Collaborative Planning and visual management fully embedded

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Overnight resurfacing productivity Overnight resurfacing productivity has

increased from 240 tonnes per shift to 325 – an increase of 35% since 2015

We brought together everyone involved, our tier 1, 2 and 3 suppliers as one team

Together we increased the amount of time the paver was working (the value adding activity)

We have saved around 5500 shifts so far

Workers are less exposed to risk

Challenging ourselves to improve further

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Improvement Engine

Lean Deployment Strategy

Leadership & Engagement

Developing Capability

Sustainability

Lean Deployment

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Visual

Management

Lean Sigma

5 S

Continuous

Improvement

cells

Community

Benefits

Framework

Assessing

Maturity

Lean in

Your

business

Contracts

&

Feedback

Tracking

Lean

Projects

Knowledge

transfer Collaborative

Planning

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Tracking benefits is

vital and provides the

‘oxygen’ to sustain a

lean strategy

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Highways (Drainage, Geometry and

Pavements)

Managing Incidents

Winter Service

Structures and Restraint Systems

Risk and Knowledge Management

Commission and Statutory Process

Signs, Lighting, Signals Traffic Control

Managing Works by Others

Routine and Cyclic Maintenance

LEAN Tools (CP, VM and CI)

Roadside features, landscaping etc.

Design Process

Efficiency Cost Savings

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The improvement engine

over 300 lean projects

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Visual Management

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Collaborative Planning

Visualise the Plan

Challenge and Improve

Consider “Blockers”

Look ahead

Review

Capture Performance

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Performance Management

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0

4

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Assessing Lean Maturity

Integration of Lean in Business Strategy

Lean Leadership and Engagement

Deployment Management / Lean

Infrastructure

Understanding Customer Value

Understanding of processes and value

streams

Use of methodologies and

Tools

Organisational coverage, activity

and capability

Performance Improvement /

Benefit Realisation & Delivery

Lean collaboration, climate and culture

Supplier maturity

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Lessons Learned (what worked well)

Establish a top down strategy and a deployment/benefits target

Leadership at all levels is vital – not just talking about lean!

Lean supports transformation to a continuous improvement culture

Don’t expect staff to do lean as well as their day job!

Make resources available to support lean

Establish a core team but use secondees in the business.

Identify senior leaders who genuinely believe in lean and will

actively support the programme

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“Insanity: Doing the same thing over and over

again and expecting different results.” ALBERT EINSTEIN, 1879-1955