14422373 introduction to lean construction
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CMP831Lean Construction Principles and
Methods
Lean Construction Overview
Tariq Abdelhamid- CMP831- Michigan State University 20081
. , . .
Associate Professor
School of Planning, Design and Construction
These materials were developed as part of MSUsCMP831 course on "Lean Construction a springsemester offering since 2002. Most of the materials aredeveloped, modified, and/or adapted by the instructor,
. ,developed by student teams. There are materials thatalso belong to other authors (as referenced and cited).The materials in this presentation is to be used strictlyfor non-revenue producing educational purposes. Anyother use must be approved by Tariq Abdelhamid
tari msu.edu . Use of co ri hted material that is not
Tariq Abdelhamid- CMP831- Michigan State University 20082
the property of this author must first obtain thepermission of the listed author(s).
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Module ITraditional Construction
Management Module I will present:
An overview of the construction industry
The rise of construction management
The state of the industry with respect to itsmanagement practices
Essential features of contemporary
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construction management techniques
The problems with current construction
management techniques
Construction Projects The construction industry is characterized by:
Different Construction categories
Different workplace/workstations
Nature of sites (multi-employer/environment/clean!!!)
Physical work
Special trades
Teamwork (GC, Subs, Suppliers, A/E, Owner, Government)
Construction projects in the US are broken down as follows:
Residential [30-50%]
Building Construction [35-40%]: (office buildings, banks, shopping
centers, dealerships, sport complexes, hospitals, universities)
Tariq Abdelhamid- CMP831- Michigan State University 20084
Engineered (heavy and highway) Construction [20-25%]: (highways,
airports, harbors, tunnels,bridges, dams, pipelines, waterways, sewage
plants)
Industrial [5-10%]: (processing plans, refineries, steel mills)
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Construction Project Phases
Four distinctand essential phases (Ahuja etal 1994):
Conceive:
Owners Need StatementDevelop:
s a s men o eneraRequirements
Feasibility and Impact Studies
Conceptual Design
Preliminary Design
Detailed Design
Execute:
Assign Construction Team
Finish:
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Onsite Planning
Construction
Commissioning
Commissioning
Training
This is a linear view of a process that is inherently non-linear
Owner
Customer
Supplier
Processor
of the
Design
Designer
sOwnerOwner
Customer
Supplier
Processor
of the
Design
Designer
Customer
Supplier
Processor
of the
Design
Designer
s
This is still a linearview of a process
that is inherently
non-linear
Sub-
contractor(s)
Supplier
Processor
of the
Contractor
Customer
Supplier
Processor
of the
Operation
Supplier
Processor
of the
Consultant
specs&plans
requir
eme
Design development Phase
Sub-
contractor(s)
Supplier
Processor
of the
ContractorSub-
contractor(s)Sub-
contractor(s)
Supplier
Processor
of the
Contractor
Supplier
Processor
of the
Contractor
Supplier
Processor
of the
Contractor
Customer
Supplier
Processor
of the
Operation
Customer
Supplier
Processor
of the
Operation
Supplier
Processor
of the
Consultant
Supplier
Processor
of the
Consultant
specs&plans
specs&plans
requir
eme
Design development PhaseD
esigndevelopment
Phase
Tariq Abdelhamid- CMP831- Michigan State University 20086
ons ruc on
CustomerCustomer
anagemen
facilityConstruction production Phase
ons ruc on
Customer
ons ruc on
Customer
ons ruc on
Customer
ons ruc on
CustomerCustomer
anagemen
Customer
anagemen
facilityConstruction production Phase
Construction production Phase
Burati, J.L., M.F. Matthews and Kalindi S.N., (1992). Quality managementorganizations and techniques. Journal of Construction Engineering andManagement. Vol. 118 No 1, pp. 112-128.
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Construction Management
The increasing complexity of contractualrelations and the construction process lead
responsible for the managing of theconstruction process. Typically referred toas the construction manager.
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Construction Management is defined as the judicious
allocation of resources to finish a project on time, at
budget, and at desired quality (Sears and Clough 1994).
os This definition is areflection of the famoustriangle of tradeoffsbetween Time/Cost/Quality.A long running joke in theindustry has been that youcan only get two out of thethree attributes.
Tariq Abdelhamid- CMP831- Michigan State University 20088
Time Quality
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Quality Cost Tradeoffs
Q/C guides
planning/control
Where did the T/Q/C tradeoffs come from?Well, from the graph below.
COST($)
Construction Cost
Total Cost
Minimum Total Cost
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Increasing Quality of Conformance
ua y on roCorrection Costs
Time Cost Tradeoffs
T/C guides
planning/control
Where did the T/Q/C tradeoffs come from?Well, from the graph below.
COST($)
Direct Cost
Total Cost
TMMinimum Total Cost
CE
Tariq Abdelhamid- CMP831- Michigan State University 200810DURATION
Indirect Cost
Minimum Direct Cost
MinimumDuration
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Origins of Time Cost Tradeoff
The roots of T/C , Q/C tradeoffs can befound in inventory management
literature as far back as the 20s. (Compareto graphs on previous two pages!)
COST($)
Processing/Setup
Total Cost
Minimum Total Cost
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Quantity (Lot Size)
Costs
Carrying Cost
EOQ
Current State of Construction
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(Adrian & Adrian 1995)
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Current State
The 6th annual survey of construction
Between 40 and 50 percent of allconstruction projects are runningbehind schedule ( same as previous
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years .
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Current State
The 6th annual survey of constructionowners b CMAA 2005 reveals:
The biggest cost impacting constructiontoday is that of inefficiencies built into theway projects are run and managed not
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concrete, or the cost of labor.
Survey (cont.):
Trust and integrity are required ingredients
Current State
for improving communications and
collaboration
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Survey (cont.):
Current State
More than a third of owners said they
felt their project controls were not
adequate, citing project management and
cost controls as areas most in need of
Tariq Abdelhamid- CMP831- Michigan State University 200817
mprovemen .
Survey (cont.):
Current State
ere s a c ear ren among governmen an
quasi-public owners to break out of the
design-bid-build pattern and explore other
options, judging these options on the basis of
which best meets the needs of a specific
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project.
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Owners top concerns (CMAA 2005) :
Trust and integrity in the construction processCoordination/Collaboration among team members , , ,and final usersA/E consciousness of the cost to build their designsBringing contractors, subs, and suppliers on board during thedesign phaseScope control/communicating a clear work scopeProviding drawings that are more complete to build the projectOwner responsibility for the process
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Owner decision-making responsivenessAttaining good project definition
Owners are beginning to see how their ownapproaches to construction can actually fosterinefficiency and raise costs -- or, in contrast,
collaborative and open working environmentin which jobs are done quickly and done right
CMAA Executive Director Bruce DAgostino.
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Construction Waste (CURT)
orrec on e-wor Performing work out of sequenceWaiting for design commentsInefficient construction methodsMarshalling of materials on-siteRedundant design/construction processes
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Inefficient teamwork/communicationSlowdown/stoppage in work processes
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g
ommonUnderstandi
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C
Design/Build
CM Agency/At-Risk
CM/GC Hired
Engineers Hired
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Adapted from:
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Management Levels in Construction
OrganizationalOrganizational
Pro ectPro ect
Company structure; Multipleproject attributes
Project breakdown accordingto contract, specs , dwgs; cost;
Adapted from Halpin and Woodhead (2000)
Today, CM
ProcessProcess
ActivityActivity
time; resource control
Activity status againstbudgeted cost/time; resourcesuse
Focus on day-to-day functions.
box!!!TransformationManagement
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Work TaskWork Task
o ce o cons ruc on me o s.Decisions on activity sequencing.Management of tradeinteractions)
How do we manage projects now?Focus on transformation activities
Determine client requirements(including quality, time andbudget limits) and design to
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mee em
Lean Construction Institute 2003, used with permission.
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How do we manage projects now?Focus on transformation activities
Cost estimates for activities are identified.
Conventional Cost principle
ProfitPrice toSell
1
2
3Cost + Profit = PriceCost + Profit = Price
3
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Cost toProduce 1
Kentucky Center for Experiential Education 1998 / Shingo 1989 (adapted)
Using the estimating formula Cost + Profit =Price assumes that the whole is the sum of itsparts! It also assumes that if we perform each partat the lowest cost then the entire ro ect will be
Using the estimating formula Cost + Profit =Price assumes that the whole is the sum of itsparts! It also assumes that if we perform each partat the lowest cost then the entire ro ect will beperformed at the lowest cost.
We know projects dont necessarily get done atthe lowest cost estimated or even bid.
performed at the lowest cost.
We know projects dont necessarily get done atthe lowest cost estimated or even bid.
Tariq Abdelhamid- CMP831- Michigan State University 200828
We also know that the whole is definitely not thesum of its parts.We also know that the whole is definitely not thesum of its parts.
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Conventional Cost principle
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How do we manage projects now?Focus on transformation activities
Break project into activities,estimatin duration and resourcerequirements for each activityand placing in a logical orderwith CPM
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The schedule is not the plan. Theschedule is simply one component of theProject Implementation PlanThe plan is
-understanding of the project and itsdetails.
Rainbows & Ratholes: Best practices for managing successful projects - by DhanuKothari (2006)
Tariq Abdelhamid- CMP831- Michigan State University 200833
"Plans are nothing, planning is everything---Dwight D. Eisenhower "
How do we manage projects now?
Focus on transformation activities
Assign orcontract each activity, give startnotice and monitor safety, quality, time
.from standards.
COST
TIME
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Lean Construction Institute 2003, used with permission, (modified).
ACTIVITIES
RESOURCE
GOAL
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How do we manage projects now?Focus on transformation activities
oor na e wor w mas er sc e u e anweekly meetings
Reduce cost by productivity improvement
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e uce ura on y spee ng eac p ece or changing logic.
Improve quality and safety with inspection andenforcement
Lean Construction Institute 2003, used with permission.
Current Production Planning
Production is viewed only as a TRANSFORMATIONof inputs to outputs
PROJECT
PLANNING THEWORKINFORMATION
OBJECTIVES
SHOULD
Lean Construction Institute, 2001 (adapted)
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Current ProductionControl
PLANNING THEINFORMATION
PROJECTOBJECTIVES
SHOULD
EXECUTINGTHE PLANRESOURCES DID
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Current project control focuses only on should vs. did;cost and schedule variances; recovery plans
Monitor work progress (production) and performance(productivity)
Lean Construction Institute, 2001 (adapted)
Common Practice: Variance-Driven Control!(Earned Value)
Target Schedule (baseline ; S-Curve)
BCWS
-d
aysor$
BCWP (Earned Value)
ScheduleVariance (SV)
Cost
Variance (CV)
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Workdays
Worker
Data Date / Time now
ACWP
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Common Practice: Variance-Driven Control!(Earned Value)
By the time the variance is detected itmay be too late for project to get backon track Too sluggish of a response!!!
Reporting an aggregate schedule/costvariance overlooks the mini-failures
Tariq Abdelhamid- CMP831- Michigan State University 200839
going on (many negatives variances
could be offset by one large positivevariances)
Common Practice: Can Do Attitude
Over-committing Lack of Trust
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Common Practice: Can Do Attitude
SHOULD
CAN
SHOULD
HighestHighestProbability ofProbability of
Lean Construction Institute, 2001, (adapted)
CAN Will
CompletionCompletion
Current common practice is to makeweekl roduction assi nments WILL
Tariq Abdelhamid- CMP831- Michigan State University 200841
that may fall outside the ability ofworkers to perform (CAN). There isalso instances when a commitment is
made (WILL) for things that should notbe done.
Construction work is a function of Cycle Time = Conversion +Handling + Inspection + Wait
A 1-5% Conversion;
Common Practice: Sub-Optimizing!
Activity
B
CDEF
GHI
JK
LMNO
P
95-99%, Handling,Inspections, andWait; Non-Valueadding; Waste
Value adding
Tariq Abdelhamid- CMP831- Michigan State University 200842
Q
Handling + Inspection + Wait componentconsidered part of doing the businessAddressedusing Work Sampling / Productivity Studies.
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Common Practice: Sub-Optimizing!
Inspection + Wait
Focus has been on reducing conversion timeusing technology, equipment, automation, andto some extent modularization.
Tariq Abdelhamid- CMP831- Michigan State University 200843
Why has focus been on reducing conversion time when
the majority of the cycle time is waste?
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WORK SAMPLING
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w c s e way pro uc v y straditionally improved in constructionassumes that construction operations
are independent)
THE PROJECT is made ofinterdependent (interconnected)
Tariq Abdelhamid- CMP831- Michigan State University 200846
.process will do nothing for thethroughput of the system if theentire system is not considered.
You are as strong as yourweakest link, and as fast as your
slowest process
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Is the concrete ready orwill this foundation be left
exposed for a couple ofdays? Is that good or badplanning?
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This was an example of a foundation pit poured with the wronganchor rods and plate. Why? Because no one checked. Rework isnot really an inherent part of construction. Its self-inflicted inmuch of the cases, whether by design errors and omissions and/orcontractor mistakes
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Activity centered: Ignores the effect of workflow
variation on performance
Essential Features of Current Practice
increase productivity or point speed
Deviation-based control (tracking)
Each party in the project protects its own turf
activities
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Little learning; repetitive failures.
Ignores the creation and delivery of value
Exhibits the Punch List SyndromeLean Construction Institute, 2001
Changing Paradigm owners want more
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Adapted from Vanegas, J.A., DuBose, J.R., and Pearce, A.R. (1996). SustainableTechnologies for the Building Construction Industry. Proceedings, Symposium onDesign for the Global Environment, Atlanta, GA, Nov. 2 - 4.
HOW can the industrydeliver the new attributesif it had trouble with theoriginal triangle???
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Industry Solutions
To counter problems caused by the shortfalls of current
CM paradigm and to attempt giving owners more thanTime/Cost/Quality, which werent consistentlydelivered some com anies started to considersolutions (workarounds):
SafetyITProductivity Improvement
Value-engineeringDesign-buildPartnering
Tariq Abdelhamid- CMP831- Michigan State University 200851
Computer Simulation Constructability
Industry Solutions
Increased involvement of contractors and suppliersthrough design/build and partnerships doesntwork well
Constructability is simply a reaction to a design and not aprocess where the design is INFORMED by the constructor
Standardization of the recipe where it should havebeen standardization of the ingredients only
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fragmentation and contractual issues..Still fail toconsider entire system sub-optimization is theresult.
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Industry Solutions
Use of multi-skilled teams to decouple dependencebetween activities
Industrialization (fails because of sub-optimization)
faster)
Computer simulations; celebrates the incorporationof variability in time and cost estimates withouttrying to remove this biggest source of waste andsubstandard performance.
Tariq Abdelhamid- CMP831- Michigan State University 200853
All these attempts are palliatives directed at
fragmentation and contractual issues..Still fail toconsider entire system sub-optimization is theresult.
Imagine an automobile assembly line where each step alongthe line is undertaken by a different company with its ownfinancial interest and separate labor union!...Present [construction] practice is impossible. The client asks anarc ec o es gn some ng spec ca y or m. n ma ngdrawings the architect will specify various components out ofcatalogues. He is nearly always restricted to elements thatare already manufactured. Then the contractor, who hasusually had nothing to do with the design process, examinesthe drawings and makes his bid. Industry supplies raw
Tariq Abdelhamid- CMP831- Michigan State University 200854
contractor. The various building material manufacturersmake their components totally independent of each otherItis an absurd Industry!
Moshe Safdie
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A robin building its nest a masterbuilder!!
Tariq Abdelhamid- CMP831- Michigan State University 200855
Customer is happy!
On time, on budget, desired quality,No RFIs, No change orders,No injuries/fatalities, no punch list items,and totally green!!
Module IILean Construction Management
Module II will present:An introduction to LeanConstruction Management
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Fixed-position manufacturing (whole
assembled from parts; workers complete
What type of production is construction?
processes on a stationary product)
Final product is rooted in place
(uncertainties and customer involvement)
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rec ves- r ven
Ballard and Howell (1997)
What production Theory does constructionfollow?
Production Theories
Even if yes, theories are for academics only because a
theory seeks the truth but compromises usefulness!!(Very incorrect statement)
A theory is a statement that describes andexplains observations in real world and allows us
Tariq Abdelhamid- CMP831- Michigan State University 200858
There is nothing more practical than a goodtheory - Gregory Howell, co-Founder of LCI
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Conversion/Transformation View Conce t: Convert/transform in uts to out uts
Production TheoriesBertelsen and Koskela 2002
Principles: Getting production realized efficiently;
Decompose the production task, and minimize the
costs of all decomposed tasks;
Methods: WBS, MRP, OBS
Tariq Abdelhamid- CMP831- Michigan State University 200859
Practical contribution: Taking care of what has to
be done
9Essentially an Activity Management philosophy
Bertelsen and Koskela 2002
Flow view
Concept: Flow of material is composed of transformation,
Production Paradigms/TheoriesBertelsen and Koskela 2002
,
Principles: Elimination ofWASTE (non-value-adding
activities) by compressing lead times, reducing variability
increasing transparency and flexibility
Methods: Continuous flow, pull production control, JIT,
Tariq Abdelhamid- CMP831- Michigan State University 200860
continuous improvement
Practical contribution: Taking care that what is
unnecessary is done as little as possible
9Essentially a Flow (WASTE) Management philosophy
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Value Generation View
Concept: Production fulfils requirements of a
Production Paradigms/TheoriesBertelsen and Koskela 2002
Principles: Elimination of value loss (realized
outcome versus best possible) by ensuring
customer needs and wants are captured &
challenged
Tariq Abdelhamid- CMP831- Michigan State University 200861
, ,
Practical contribution: Taking care that customer
requirements are met in the best possible manner9Essentially a Value management Philosophy
Bertelsen and Koskela 2002
Koskela and Howell (2002)
Tariq Abdelhamid- CMP831- Michigan State University 200862
Todays Construction Management Focus. The other theoriesof project and management need to be considered. Thats
what Lean Construction advocates and encompasses.Koskela, L. and Howell, G., (2002). The Underlying Theory of Project Management isObsolete. Proceedings of the PMI Research Conference, 2002, Pg. 293-302.
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Lean Construction
Project management practicedtoday gives us strategy akin tothe process of controlling themainsail and rudders).
What is missing is the productionmanagement process akin tothe process of trimming the frontjib sail and balancing the boat).
Lean Construction achieves bothand promotes continuousimprovement through change!!
ProjectManagement
ProductionManagement
Tariq Abdelhamid- CMP831- Michigan State University 200863
Todays Construction is guided and
influenced b the Activit Mana ement
Future Construction Production
(Transformation View)
We need to consider Flow (WASTE)
Management and Value Management
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Lean Construction considers all three and
more
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WE PRACTICE:
PROJ ECT PLANNING ANDCONTROL; BUT WE ALSONEED:
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PRODUCTION PLANNING AND
CONTROL
What is LEAN Construction?
minimize waste of materials, time, and effortin order to generate the maximum possibleamount of value."
Koskela, L., Howell, G., Ballard, G. , and Tommelein, I. (2002). "The Foundations of Lean
Construction." Design and Construction: Building in Value, R. Best, and G. de Valence,
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eds., Butterworth-Heinemann, Elsevier, Oxford, UK.
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Wlabridge Aldinger defines LC through its features
and requirementsLC is a process that:
What is LEAN Construction?
Reduces Waste Saves Money and Reduces Cost Creates Higher Quality Creates Flexible Delivery Systems to Match Owner Requirements Creates Stable Schedules Reliable Material Deliveries and Reliable Workforce Promotes Employee Participation, Which Leads to Satisfaction
Tariq Abdelhamid- CMP831- Michigan State University 200867
Requires a Cultural Change.
(http://www.walbridge.com/lean/index.htm)
Waste vs. Value
Waste is usually what reduces value fore per ormer.
Value for the client is produced by theirassessment of the deliverable when it is
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.
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LEAN Construction allows you to arrive atall your goals without a trade-off
Time
ParticipantSatisfactionSafety
Cost Quality
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Sustainability
Lean Construction advocatesare working on figuring out
the mechanism and means toachieve all sides of the cubewithout having to settle forone or two faces at a time.
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Mass Production
Craft Production Lean Production
Value Management
Transformation-Flow- Value
Theory of Production
Lean Construction
ManagementPLANNING EXECUTION
Social
Systemautonomous
agent
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TheoryManagement-as-PlanningManagement-as-organizing
CONTROLThermostat model
Scientific experimentation model
Classical Communication theory
Language/action perspective
How is LEAN Constructiondifferent?
Lean Construction supplements traditional
construction management approaches with:
two critical and necessary dimensions for successful
capital project delivery by requiring the deliberate
consideration of material and information flow and
value generation in a production system.
Tariq Abdelhamid- CMP831- Michigan State University 200872
a different management (planning-execution-control)
paradigm
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What is LEAN Construction?The pursuit of concurrent and continuous
(design, procurement, construction,operations, and maintenance) to delivervalue per agreement with the owner
73Tariq Abdelhamid- CMP831- Michigan State University 2008
Philosophy studies the fundamental nature of existence, ofman, and of man's relationship to existence. In the realmof cognition, the special sciences are the trees, butphilosophy is the soil which makes the forest possible. Ayn Rand, Philosophy, Who Needs It (p. 2)
Lean Construction is a philosophy - a comprehensive system ofideas about the delivery of the built environment.
Lean Project Delivery System: how to practice the LeanConstruction philosophy.
Inte rated Pro ect Deliver : a form of relational contractin
74
arrangement to enable LPDS.
ConsensusDocs: a form of relational contracting arrangement toenable LPDS.
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Built Environment Operating System and Email Protocol Metaphor
Lean Construction is the Operating Systemfor the built environment and the EmailProtocol that built environment agents useto interact and operate
75Tariq Abdelhamid- CMP831- Michigan State University 2008
Built Environment Operating System and Email Protocol Metaphor
Supply Chain(internet) Built Environment
(Mail Server OPERATING SYSTEM?)
(POP or IMAP store)
OwnerA/E
(SMTP) (SMTP)
(POP orIMAP)
(POP orIMAP)
Lean Construction is theOperating System for the
built environment and the
76
(Mail Client)
(SMTP)
Simple Mail Transfer Protocol (SMTP)Internet Message Access Protocol (IMAP)Post Office Protocol (POP)
Email Protoco l that builtenvironment agents useto interact and operate
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Lean Construction
Should we focus on finding our ownoperating system (OS) for the BuiltEnvironment?
Yes and No!!!!
An OS doesnt have culture, traditions,customs, and human interaction
roblems.....we need an OS and our
77
own Email Protocol as well
Tariq Abdelhamid- CMP831- Michigan State University 2008
System States based on quality conformance and existence of
common and special cause variances
Tariq Abdelhamid- CMP831- Michigan State University 200878
Adapted from David J. Anderson posting athttp://www.agilemanagement.net/Articles/Weblog/FeaturedBlogEntries/QualityasaCompetitiveWeap.html
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System States based on quality conformance and existence ofcommon and special cause variances
Tariq Abdelhamid- CMP831- Michigan State University 200879
Adapted from David J. Anderson posting athttp://www.agilemanagement.net/Articles/Weblog/FeaturedBlogEntries/QualityasaCompetitiveWeap.html
System States based on quality conformance and existence of
common and special cause variances
-Change (improve process) or-Relax standard for conformance
Tariq Abdelhamid- CMP831- Michigan State University 200880
Adapted from David J. Anderson posting athttp://www.agilemanagement.net/Articles/Weblog/FeaturedBlogEntries/QualityasaCompetitiveWeap.html
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System States based on quality conformance and existence ofcommon and special cause variances
-Change (improve process) or-Relax standard for conformance
Tariq Abdelhamid- CMP831- Michigan State University 200881
Adapted from David J. Anderson posting athttp://www.agilemanagement.net/Articles/Weblog/FeaturedBlogEntries/QualityasaCompetitiveWeap.html
System States based on quality conformance and existence of
common and special cause variances
-Change (improve process) or-Relax standard for conformance
Tariq Abdelhamid- CMP831- Michigan State University 200882
Adapted from David J. Anderson posting athttp://www.agilemanagement.net/Articles/Weblog/FeaturedBlogEntries/QualityasaCompetitiveWeap.html
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Lean Construction
Tradi
Production Mgmt Maturity
tionalConstruction
ManagementMaturit
Tariq Abdelhamid- CMP831- Michigan State University 200883
Adapted from David J. Anderson posting athttp://www.agilemanagement.net/Articles/Weblog/FeaturedBlogEntries/QualityasaCompetitiveWeap.html
roject
Partial Lean Construction(cycle time reductions only)
Module IIILean Construction Management
Module III will present:Lean Construction Value
A Management BY Values approach
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Value fitness for use ; comes fromualit literature
Typical Value Definitions
Value performance relative to cost;value engineering definition.reducingcost will give better value
Tariq Abdelhamid- CMP831- Michigan State University 200885
Value Engineering is improving the "Value" byexamining the ratio of value function to itscost.
Kano Model
Tariq Abdelhamid- CMP831- Michigan State University 200886
source: http://www.gene2drug.com/bCustom/bProduct_features.asp
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Value results from the combination ofsuch things as design, engineering, factory
Typical Value Definitions
,management, and marketing, and dependson the competitive environment, and theworld economy
Tariq Abdelhamid- CMP831- Michigan State University 200887
In a capitalist economy, value can onlybe measured at points where real money
(not internal work orders) changes hands.
1998,1999 Dr. Chet Richards
Lean Value
A capability provided to a customer atthe right time at an appropriate price,as defined in each case by thecustomer.
Lean Thinking ,(Womack and Jones 1996)
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Demings Last Interview
The customer invents nothin . The customer doesnot contribute to design of product or the design of theservice. He takes what he gets. Customerexpectations? Nonsense. No customer ever asked forthe electric light, the pneumatic tire, the VCR, or theCD. All customer expectations are only what you andyour competitor have led him to expect. He knows
Tariq Abdelhamid- CMP831- Michigan State University 200889
nothing else.
Tim Stevens, Dr. Deming: Management today doesnot know what its job is.Industry Week, January 17,1994, 21 ff.
1998,1999 Dr. Chet Richards
Management of Value is similar toValue Engineering
Mana ement of Value ValueManagement
Value management is the practiceof managing performance byfocusing on those activities that
'
Tariq Abdelhamid- CMP831- Michigan State University 200890
,- the value the client desires.
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Value in Construction
Value is generated through the interaction betweencustomer and supplier, wherein the customers providethe requirements and the supplier delivers it.
(Koskela 2000).
Principle: Elimination of value loss (realized outcome
versus best possible) by ensuring customer needs and
wants are captured & challenged (QFD, AHP, DCM)
Tariq Abdelhamid- CMP831- Michigan State University 200891
Practical contribution: Taking care that customer
requirements are met in the best possible manner
Value in Construction
Value is generated when (LCI 2001):
Customer capabilities are expanded, creatingnew needs and purposes.
The facility better fulfills the purposes ofcustomers/producers and demands of other
Tariq Abdelhamid- CMP831- Michigan State University 200892
(not just fitness for use or performancerelative to cost)
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Value in Construction
Value is described as:
Conceptualization of production (from valueviewpoint): As a process where value for thecustomer is created throu h fulfillment ofhisrequirements.Bertelsen & Koskela (2002)
the construction process generates thevalue wanted by the client.Bertelsen & Koskela (2002)
Value is generated through a process ofnegotiation between customer ends andmeans.Ballard & Howell (1998)
Tariq Abdelhamid- CMP831- Michigan State University 200893
Value mainly as both utility and marketvalue, i.e. product value in LeanConstruction.
Value is a temporally changing subjective qualitythat is determined by the client the client will havedifferent values as the facility is evolving and evenafter its delivered and occupied.
Value in Construction
n genera va ue rom t e c ent stan po nt cannotbe separated from the utility the client derives fromit.
Maximizing value means maximizing the utility theclient derives from the facility they requested to bebuilt. Utility is maximized through a management
BY values a roach which simultaneousl considers
Tariq Abdelhamid- CMP831- Michigan State University 200894
product and process value management.
Lean Construction can minimize the differentialbetween desired value and realized value.
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Value in Construction
Value is what the customer says it is Greg Howell co-founder Lean Construction Institute
Value is in the eye of the beholder
The Client wants to know how you will add value to hisproject President of Parsons Brinckerhoff ConstructionServicesControlling time, cost, and quality is not
Tariq Abdelhamid- CMP831- Michigan State University 200895
, . ,
Leinonen & Huovila (2000)mentions three different kinds of
,use (utility) value and esteemvalue.
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Value in Construction
Tariq Abdelhamid- CMP831- Michigan State University 200897
VALUE-BASED MANAGEMENT IN THE SUPPLY CHAIN OF CONSTRUCTIONPROJECTS IGLC12- 2004 -Sren Wandahl and Erik Bejder
Value in Construction
Tariq Abdelhamid- CMP831- Michigan State University 200898
VALUE-BASED MANAGEMENT IN THE SUPPLY CHAIN OF CONSTRUCTION
PROJ ECTS IGLC12-2004 - Sren Wandahl and Erik Bejder
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In Lean Construction, value is not attained at the expense of the product.The process of delivery can be changed and managed in a better way toarrive at the desired value
Tariq Abdelhamid- CMP831- Michigan State University 200899
Module IVLean Construction Management
Module IV will present:Lean Project Delivery System
Lean Construction Design
Target Costing
Lean Construction Supply
Tariq Abdelhamid- CMP831- Michigan State University 2008100
Lean Use
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Lean Project Delivery System
Project DefinitionProject DefinitionUSEUSE
Ballard (2000); Adapted by T. Abdelhamid
Lean DesignLean DesignLean AssemblyLean Assembly
Work StructuringWork StructuringProduction ControlProduction Control
PurposesDesignCriteria
DesignConcepts
ProcessDesign
AlterationDecomm.
OperationMaintenance
Installation
Commiss-ioning
KNOWWHAT THEOWNERREALLYWANTS
Tariq Abdelhamid- CMP831- Michigan State University 2008101
Lean SupplyLean Supply
DetailedEngn.
ProductDesign
Fab.Logistics
Product and
Process;SuppliersDesign,strategic
alliances withsuppliers
JIT,Modularize
Standardize,industrialize.
..
Lean Project Delivery System
Project DefinitionProject DefinitionUSEUSE
We will discuss the
components: Project Definition,Lean Design, Lean supply, LeanAssembly, and Use.
Lean DesignLean DesignLean AssemblyLean Assembly
PurposesDesignCriteria
DesignConcepts
ProcessDesign
AlterationDecomm.
OperationMaintenance
Installation
Commiss-ioning
KNOWWHAT THEOWNERREALLYWANTS
Tariq Abdelhamid- CMP831- Michigan State University 2008102
Lean SupplyLean Supply
DetailedEngn.
ProductDesign
Fab.Logistics
Product andProcess;SuppliersDesign,strategic
alliances withsuppliers
JIT,Modularize
Standardize,industrialize.
..
Ballard (2000); Adapted by T. Abdelhamid
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Project Definition
Determining Purposes Understand the client(s) business case.
Understand user needs (customer profiling).
Identify other stakeholders and their
demands.
Tariq Abdelhamid- CMP831- Michigan State University 2008103
.
Determine applicable codes, standards, &
laws
Lean Construction Institute, 2001
Design Criteria for Product andProcess
Voice of the Client Voice of the Designer
"I don't want people to bedisturbed by sounds other thanthose from the stage."
"Design to a decibel level of 17."
"We're going to operate thisfacility, so we need to keep
ener costs low."
"Select HVAC equipment forlow energy consumption."
Tariq Abdelhamid- CMP831- Michigan State University 2008104
"We're in a race with acompetitor. We think we'reahead, but don't know howmuch."
"Accelerate project deliverywithin the bounds of safety,quality, and spending limits."
Lean Construction Institute, 2001
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Designing vs Making
Designing
Produces the recipeQuality is realization of purpose
Making
Variability of outcomes is desirable
Iteration can generate value
Prepares the mealConstruction is
Tariq Abdelhamid- CMP831- Michigan State University 2008105
Lean Construction Institute, 2001
Variability of outcomes is not desirable
Iteration (rework) generates waste
o y eep
these separate?
Waste in DesignNeedless (Negative) Iterations
h
x de
Project Partner d e h x(mm) (mm) (mm) (mm)
Architect 550 650 650 500Steel Fabricator 550 900 650 1100
Engineer 200 900 650 1100
Tariq Abdelhamid- CMP831- Michigan State University 2008106
Architect 200 900 650 1000HVAC Subcontractor 450 800 650 600Engineer 400 900 730 700Steel Fabricator 400 900 730 800
..... ..... ..... ..... .....
From Lottaz, et al. Constraint-Based Support for Collaboration in Design and Const. Jrnl of Computing in Civ.Eng., 1/99
Lean Construction Institute, 2001
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Lean Design: An Overview
* Involve downstream players in upstream decisions* Alternate between all-group meetings and task force activities* Create and exploit opportunities to increase value in every phase of the project
Organize in CrossFunctional Teams
Pursue a set basedstrategy
* Select from alternatives at the last responsible moment* Share incomplete information* Share ranges of acceptable solutions
Structure design workto approach the leanideal
* Simultaneous design of product and process* Consider decommissioning, commissioning, assembly, fabrication,
purchasing, logistics, detailed engineering, and design* Shift detailed design to fabricators and installers
Minimize NegativeIteration
* Pull scheduling* Design Structure Matrix* Strategies for managing irreducible loops
Use Last Planner * Try to make only quality assignment*
Tariq Abdelhamid- CMP831- Michigan State University 2008107
System of ProductionControl
* Measure PPC* Identify and act on reasons for plan failure
Use technologies thatfacilitate lean design
* Shared geometry; single model* Web based interface
Lean Construction Institute, 2001
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Tariq Abdelhamid- CMP831- Michigan State University 2008109
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g
ommonUnderstandi
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C
Target Costing
Lean Construction InstituteProject Delivery Forum
Apri l 22 23, 2004
VisionValue
to
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Designing for X
{ Cost
{ Buildability
{ Assembly
{ Durability
{ Flexibility
{ Sustainability
{ Etc.
113
Tariq Abdelhamid- CMP831- Michigan State University 2007
DfX Challenges
1. How to incorporate the relevant specialists in the,
organizations together through contracts andeffective processes forcollaborativedesign
2. How to make tradeoff decisions between thecharacteristics
3. How to drive design decision making to thetargets.
114
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Designing to Target Cost
{ ...requires a fundamental shift in thinking from .
{ strives to reduce the waste and rework in theDesign/Estimate/Redesigncycle.
{ necessarily involves cross functional teams. Noone person has all the knowledge.
{ cries out for an integrated product/process /costmodel.
115
Tariq Abdelhamid- CMP831- Michigan State University 2007
Target Costing
What is the role of Target Costing?Value management or Flow management or both!
Target costing is not the same as GMP. The latter is the sum of all the bids plus contingency. Theformer is a different view all together.
Tariq Abdelhamid- CMP831- Michigan State University 2007
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3 applications of target costingin construction
1. A client has a limited amount of money to spend
value adding investment opportunities can befound.
2. A provider needs or wants to commit to a fixedprice or guaranteed maximumprice.
3. A developer targets a productioncostto generatea desirable profit margin, assuming anachievablesales rice; i.e., the traditional roduct
117
development application.
Tariq Abdelhamid- CMP831- Michigan State University 2007
The Cardinal Rule ofarge os ng
The target cost of a facility can never be exceeded.
118
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{ An investment decision makin rocess and
Lean Design andTarget Costing
disciplined approach to project financialmanagement.
{Target Costing starts at Project Definition or veryearly in thedesign phase.
{The process continues throughout all phases of
119
ac y e very.
{ The budget becomes an influence on design
and decis ion-making, rather than an outcomeof design.
Tariq Abdelhamid- CMP831- Michigan State University 2007
Applying the Cardinal Rule
{ Ensuring that whatever target costs
The Cardinal RuleThe Target Cost ofthe Facility CanNever Be Exceeded
ncrease somew ere n e ac y, cos sare reduced elsewhere by an equivalentamount without compromising programandquality.
{ Refusing to add scope to a project that will
120
.
{ Managing the transition from design toconstruction to ensure the target cost isnever exceeded.
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Target Costing3 Basic Steps
{ Establish the allowable target cost ase ne y cus ome nc u ng a
indirectcostand profit.
{ Establish the achievable target costby subtracting the profit margin andcost reduction potential throughoutvalue stream.
121
{ Decompose the project level target costdown to component level target cost
so the purchase price of componentscan be determined.
Tariq Abdelhamid- CMP831- Michigan State University 2007
The Process
{ Document and understand the ,
function and quality.
{ Align specific programming needs andfinancial constraints.
{ Establish the interdisciplinary Target
122
os eam Architects, Engineers, Facility Users, Estimators,
Specialty Contractors and Suppliers, ProjectManager
Co-locate. The first jobsite in a project is in thedesign office.
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{ Startthe Reverse Estimatingprocess
The Process Continued:
{ Establish the overall target cost.
{ Divide the overall target cost intocomponenttargetcosts
Building Component (site, substructure,superstructure, enclosure, finishes, FFE, MEPFP)
123
Functional Program
Phase
Tariq Abdelhamid- CMP831- Michigan State University 2007
{ Simultaneously design the product and
The Process Continued:
e process.
{ Work through a series of large groupmeetings and smaller componentworkshops.
{ Use set based design, sets of solutions
that satisfy cost, function and quality,
124
advanced to the last responsiblemoment Pulling information in smallbatches.
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{The project team is responsible to
The Process Continued:
impact when added scope increases thecost of the facility.
{The cardinal rule of target costing canonly be broken when the Customers
125
resulting from changes or additionalscope that increase the value of the
facility.
Tariq Abdelhamid- CMP831- Michigan State University 2007
The Process Continued:
{ pp y a ue na ys s ec n ques.
Function Analysis, Life CycleCosting,QFD
{ Negotiate budget allocations betweenteams as design and budget informationevolves.
126
{ Maintain the Component Teams tomonitor and manage the Target Costthroughout the life of the project.
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Using Value Engineering as aTarget Costing Tool
{ Systematic and interdisciplinary
{ Examination of a project and projectcomponents in terms of function andworth.
{ Structured methodology
{ Encourages analysis and creativity
127
{ Develops sets of solutions
{ Develops highest value solution based
on functionality and cost.
Tariq Abdelhamid- CMP831- Michigan State University 2007
Value Engineering5 Basic Steps
{ What is it? The first question focuses the analysis. Whenassociated with target costing the analysis is on major functions or
, .
{ What does it do? The second question defines function. Functionanalysis is at the heart of value engineering and is required for
determining value. An important product of function analysis is the
improvement in understanding of scope that occurs among the
study team members.
{ What does it cost? The third question deals with the cost offunctions. The purpose is to identify those functions where value is
low compared to cost. These items are prime for value
128
engineering.
{ What else will do the job? The fourth question requires creativityand innovation to advance sets of alternative solutions.
{ What does it cost? The fifth question is similar to the third butfocuses the on the highest value solution in terms of function and
cost. Cost is determined in terms of initial capital cost and life
cycle cost.
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The Lean Design Process
{ Understanding the customers expectations regardingcost, functionandquality
{ Co-located, MultidisciplinaryTargetCost TeamsDesigners, Facility Users, Estimators, Specialty Contractors and
Suppliers,ProjectManager,Superintendent
{ Targeting both ProjectCost &Component Costs
{ ApplyingValueEngineeringFunctionAnalysis, LifeCycleCosting,QualityFunctionDeployment
{ SetBased Design
129
Advancingsets of solutions to the lastresponsible moment
{ Simultaneous design ofProductand Process
3D prototyping{ Detaileddesign byspecialty contractors andvendors
Tariq Abdelhamid- CMP831- Michigan State University 2007
Features and Benefits ofTarget Costing
{ Scope of WorkDocument basedon Quantity, Quality, andCost
{ UpdatedTargetCost Model for design and construction
{ Commitment from the entire project team to design andbuildaccordingtothescope and budget
{ Clear translation of the Voice of the Customer intotechnical design, andultimately toproductdelivery
130
{
Decision Making throughoutthe project
{ The assurance of Lowest Product Costand Highest Customer Value
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Read This!!!
Target Costing and Value EngineeringRobin Cooper and Regine Slagmulder
Productivity Press 1997
131
Tariq Abdelhamid- CMP831- Michigan State University 2007
Lean Supply To Dos Early applications of J IT in construction should focus
on reducing on-site waste and operations variation
b :
1.Selecting location and size of material buffers / schedulebuffers / surge piles (Use Computer Simulation)
2.Creating alternative work for crews - plan buffers (UseLast Planner)
Shift detailed engineering to fabricators and
Tariq Abdelhamid- CMP831- Michigan State University 2008132
installers.
Structure logistics so materials can be pulled to site
in small batches.
Lean Construction Institute, 2001; T. Abdelhamid
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Extraction
Map the Supply Chain
Extraction
Extraction
ConstructionSite
Extraction
Extraction
ExtractionFabrication
Tariq Abdelhamid- CMP831- Michigan State University 2008133
ExtractionFabrication
Extraction
Extraction
ExtractionSuppliers
Extraction
Map the Supply Chain
Extraction
ExtractionExtraction Extraction
Supermarket
ConstructionSite
Extraction
ExtractionFabrication
Tariq Abdelhamid- CMP831- Michigan State University 2008134Lean Construction Institute, 2001
ExtractionFabrication
Extraction
Extraction
ExtractionSuppliers
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Lean Supply
At some point move to completeoff-site assembly
Lam
Channel
ReflectorLamps
End
Plate
Socket
Tariq Abdelhamid- CMP831- Michigan State University 2008135
Lean Construction Institute, 2001
Lean Assembly To Dos
Standardize and industrialize
Standardize the ingredients, not the recipe
Use 5S, poke-yoke
Simplify site installation to final assembly and
test
Flow where ou can Pull where ou must
Tariq Abdelhamid- CMP831- Michigan State University 2008136
Strive for one-touch material handling
Pull from off-site suppliers
Lean Construction Institute, 2001; T. Abdelhamid
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Lean Project Delivery System
USEUSE
Ballard (2000); Adapted by T. Abdelhamid
AlterationDecommissioning
OperationMaintenanceCommissioning
Tariq Abdelhamid- CMP831- Michigan State University 2008137
FACILITIES MANAGEMENT AREA
Lean Project Delivery System - USE
Tariq Abdelhamid- CMP831- Michigan State University 2008138
U.S. Federal Facilities Council. (2001). "Sustainable Federal Facilities: a guide tointegrating value engineering, life cycle costing, and sustainable development."Federal Facilities Technical Report No. 142. National Academy Press. Washington,DC.
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Lean Project Delivery System - USE
Operating expenses represent over 95 percent of
building life cycle costs, yet operations and
u u y
consulted during programming and design (NIBS
2003)
When 1% of upfront cost are spent, 70% of the life cycle cost of
Tariq Abdelhamid- CMP831- Michigan State University 2008139
a bldg may have been committed (Romm 1994)
National Institute of Building Sciences. (2003). Annual Report to the President of the United States.
Romm, J. (1994). Lean and Clean Management. Kodansha America Inc., New York.
Module IVLean Construction Management
Module IV will present:
Lean Construction and WorkflowReliability
Work Structuring (project and
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pro uct on p ann ng
Production Control
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Lean Project Delivery System
Project DefinitionProject DefinitionUSEUSE
Ballard (2000); Adapted by T. Abdelhamid
Lean DesignLean DesignLean AssemblyLean Assembly
Work StructuringWork StructuringProduction ControlProduction Control
PurposesDesignCriteria
DesignConcepts
ProcessDesign
AlterationDecomm.
OperationMaintenance
Installation
Commiss-ioning
KNOWWHAT THEOWNERREALLYWANTS
Tariq Abdelhamid- CMP831- Michigan State University 2008141
Lean SupplyLean Supply
DetailedEngn.
ProductDesign
Fab.Logistics
Product and
Process;SuppliersDesign,strategic
alliances withsuppliers
JIT,Modularize
Standardize,industrialize.
..
Lean Project Delivery System
Work StructuringWork StructuringProduction ControlProduction Control
We will first discuss theheart of the LPDS:Work Structuring andProduction Control
Tariq Abdelhamid- CMP831- Michigan State University 2008142
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LEAN CONSTRUCTION
IMPROVE WORKFLOW RELIABILITY ON
YOUR SITE BY THINKING THROUGH
Waste
PRODUCT DESIGN!!!!!!!!!
Work Flow
Tariq Abdelhamid- CMP831- Michigan State University 2008143
VariabilityOverburden
Production management (planning and control)
Production Planning and Control inLean Construction
enables better performance at the system levelby exposing work flow issues (waste inproduction, design and supply) at the task levels
Im rove work flow usin the tools we have in the
Tariq Abdelhamid- CMP831- Michigan State University 2008144
lean toolbox or by developing new ones.
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A project isnt a house of cards. [ But] thecurrent planning system cannot predict thework that will be completed to hand off
Tariq Abdelhamid- CMP831- Michigan State University 2008145
criteria about 50% of the time. And projectsstill get done on schedule Greg Howell
(2004)
We need more reliable workflow at thelowest levels of work to eliminate
resource increases towards the lastportions of work. We need a different
kind of production management
lannin and control .
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Process
Operation
Work Task
Process
Operation
Work Task
LEAN PRODUCTION MANAGEMENT
RELIABLE WORKFLOW AT THESE LEVELS ACHIEVED USING
Tariq Abdelhamid- CMP831- Michigan State University 2008147
ro uc on ann ng =Lean Work Structuring
(LWS)
Production Control =Last Planner System
(LPS)
Production Management
Improving Hand-off BETWEEN Production Units
Waste - Muda
Variability -Mura Overburden - Muri
PLAN FOR THE PROJECT USING WORKSTRUCTURING
PLAN FOR PRODUCTION USING THE LASTPLANNER SYSTEM
Lookahead to identify constrains and increase reliability ofcommitments
Tariq Abdelhamid- CMP831- Michigan State University 2008148
aster an ase u c e u ng Lookahead Scheduling Weekly Work Planning
(Unless commitments are made, there are only promisesand hopes but no plans.Peter Drucker)
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LEAN PROJECT AND PRODUCTION
LEAN WORK STRUCTURING (LWS)
Tariq Abdelhamid- CMP831- Michigan State University 2008149
Lean Work StructuringWork structuring develops and aligns the projectsprocess design with engineering design, supply chaincapability, resource allocation strategies, andassembly efforts.
Work structuring is production system design allthe way down.
Tariq Abdelhamid- CMP831- Michigan State University 2008150
Each chunk of work is designed so that it1) can be produced rapidly and for a low cost,
2) supports optimizing at the project level, and
3) delivers value to the customer and producer.
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Lean Work Structuring
THINKING PRODUCTION (FLOW) DURINGDESIGN AND PROJECT PLANNING!!!!!!!!!!
Waste - MudaFLOW
Tariq Abdelhamid- CMP831- Michigan State University 2008151
Variability -Mura Overburden - Muri
ProjectObjectives
Work Structuring:Master & Phase Schedules
InformationWork
Structuring
The Last
Master andPhaseSchedules
Tariq Abdelhamid- CMP831- Michigan State University 2008152
Production DID
Planner
InputsLean Construction Institute, 2001Adapted by Tariq Abdelhamid
Michigan State University
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Products of Work Structuring
Global sequencing
Supply Chain Configurations (how the projecthooks to external production systems)
Master Schedule & Phase Schedules
Rough Cut Operations Designs; e.g., decision
Tariq Abdelhamid- CMP831- Michigan State University 2008153
- - ,crane vs rolling stock
Detailed Operations Designs; e.g., how toform-rebar-pour basement walls
Work Structuring Tools
Pull Scheduling (to create Master/Phase)
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Tariq Abdelhamid- CMP831- Michigan State University 2008155
Rubicaon Associates, 2004
Tariq Abdelhamid- CMP831- Michigan State University 2008156
Rubicaon Associates, 2004
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Master Schedule-1
Tariq Abdelhamid- CMP831- Michigan State University 2008157
Lean Construction Institute, 2001
Purposes of Master Schedules
Demonstrate the feasibilit of com letinthe work within the available time.
Develop and display executionstrategies.
Determine when long lead items will be
Tariq Abdelhamid- CMP831- Michigan State University 2008158
. Identify milestones important to client or
stakeholders.
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Phase Scheduling: Purposes andActions
Tariq Abdelhamid- CMP831- Michigan State University 2008159
Phase Scheduling: Purposes andActions
Produce the best possible plan by involving
near action.
Assure that everyone in a phase understandsand supports the plan by developing theschedule as a team.
Assure the selection of value adding tasks
that release other work by working backwards
Tariq Abdelhamid- CMP831- Michigan State University 2008160
rom e arge compe on a e o pro uce apull schedule.
Publicly determine the amount of timeavailable for contingency and decide as agroup how to spend it.
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Entry Rules
Master/Phase schedule unless positiveknowledge exists that it should not orcannot be executed when scheduled.
Tariq Abdelhamid- CMP831- Michigan State University 2008161
Lean Construction Institute
Work Structuring Tools
Value Stream Mapping / First-Run
Value Stream Ma in / First-Run
Waste - Muda
Variability -Mura Overburden - Muri
Tariq Abdelhamid- CMP831- Michigan State University 2008162
Studies --still useful during construction)
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Work Structuring ToolsWaste - Muda
Variability -Mura Overburden - Muri Construction Operations Simulation
(how do you use it in a Lean context?)
The bottlenecks but not to just have a utilization based improvementin the processFor example, increasing the number of loadersbecause the haulers are waiting or speeding up the loading. We haveto look at the non-processing component of the cycle time (handling,wait, and inspection). Redesign the process to be more productbased.We also want to be careful not to contribute to overproduction.
Tariq Abdelhamid- CMP831- Michigan State University 2008163
Do not celebrate the inclusion of variability. We should try to removethe variability using Kaizen or Kaikaku and tools such as VSM, J IT,LastPlanner,
LEAN PRODUCTION CONTROL
The LAST PLANNER SYSTEM
Tariq Abdelhamid- CMP831- Michigan State University 2008164
To manage a system effectively, you might focus on theinteractions of the parts rather than their behavior taken
separately. - Russell L. Ackoff
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Workflow Variation
Workflow variability is a manifestation of
operation (Production unit) performance (cycle
time) variability, i.e., the predecessor
releasing work erratically to the successor!
Tariq Abdelhamid- CMP831- Michigan State University 2008165
Last Planner System of Production Control
LPS is a production/workflow control system
designed to:
Empower front-line personnel to make decision
about what work to commit to;
Improve workflow by ensuring that future work is
Tariq Abdelhamid- CMP831- Michigan State University 2008166
-
Tracks PPC (Percent Plan Complete) as a
measure of produc tion system variability
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Production Planning and Control
ProjectObjectives
The Last Planner
System
The Last Planner
System
CANWILL
SHOULD
Information
WILL
Planningthe Work
CanThe Last
Planner Phase II
SHOULD
Making WorkReady
Should vs. Did
Tariq Abdelhamid- CMP831- Michigan State University 2008167
ProductionDID
[work we KNOWcan be done
Inputs
Lean Construction Institute, 2001, (adapted)
PPC =DIDsWILLS
Master
& Phase
LAST PLANNER SYSTEM
Work
Structuring
Design
Criteria
SHOULDInformation
Selecting,
sequencing, &
sizing work we
think can be done
c e u e
Make work
ready by
Information
Selecting,
sequencing,
& sizing work
Current status
& forecastsLookahead
Workable
Backlog
Weekly
Work Plans
CAN
Will
Tariq Abdelhamid- CMP831- Michigan State University 2008168
,pulling, & FRS
we now
can be done
ProductionResourcesCompleted
Work
Lean Construction Institute, 2001, T. Abdelhamid
DID
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Master
& Phase
LAST PLANNER SYSTEM
Work
Structuring
Design
Criteria
SHOULDInformation
Selecting,
sequencing, &
sizing work we
think can be done
c e u e
Make work
ready byInformation
Selecting,
sequencing,
& sizing work
Current status
& forecastsLookahead
Workable
BacklogWeekly
Work Plans
CAN
Will
Tariq Abdelhamid- CMP831- Michigan State University 2008169
,
pulling, & FRSwe now
can be done
ProductionResources CompletedWork
Lean Construction Institute, 2001, T. Abdelhamid
DID
M T W R F S M T W R F S M T W R F S M T W R F S M T W R F S M T W R F S
1 Build mock-up of room 11 Boldt x x xx x x x x x Millwork & mirror
1 Microscope vibration study S LM C/ S TS x x x x xCD's will be issued prior to this info;Isolation system will come as addendum
1 Bid & award bid pack 3 Boldt x x x xx Review with Brad
1 Submit-review-approve roofing shopdrwng Langer x x x xx x x x x x x Additional submittals required
1 Release updated construction documents A RC x x x x x Coordinate with Ring & Du
Project: SameDaySugeryPlanner:Dena Deibert
Six Week Lookahead / Constraints Analysis
11/28/04
11/21/0410/24/04 11/14/0411/7/0410/31/04
Comments / Other
Week of 10-23-00
Activity ResponsibleParty
LOOKAHEAD SCHEDULE
1 Demolition Boldt x xx xx x xx xx x xx xx x xx xx x xx xx x xx x
1 Pour roof Boldt x x
1 Expedite stone production BDI x xx xx x xx xx x xx xx x xx xx x xx xx x xx x x x Stone was ordered 10-19-00
1 Steel Shops: Curtainwall Support Duwe x x xx x x x xx x x Klein Dickert will coordinate with Mike D
1 Roof detailing Duwe x x x xx x
1 Phase 3 Millwork Shop Drwngs P recision x x x x x x x x x x x x x x x
1 Fabricate louvers Air Flow x x xx x x x xx x x x xx x x x xx x x x xx x x x x x x 5-6 week lead time - Ordered 10-19-00
1 Fabricate auto entrance doors Besam x x x xx x x x x x Shipping 11-3; Besam header to Dickert
1 Fabricate curtainwall K le in Dic ke rt x x x x x x x x x x x x x x x x x x x x x x Waiting for framing materials-by October
2 Mock-up review S LM C x x x x x x Millwork; Mirror
2 Masonry Work BDI x x x x x x x x x x x x x x x x x x x x x x x Roger needs to confirm if brick is in
2 Penthouse framing & decking Duwe x x x x x x Boldt to confirm placement of AHU's
2 Bid Pack 3 Submittals TBD xx xx x xx xx x xx xx x x x Award contracts
Tariq Abdelhamid- CMP831- Michigan State University 2008170
2 ar wor on pa en rooms - TBD xx xx x xx xx x xx xx x x x e e o c oo r n a e w a n e ep er s
Workable Backlog
Fabricate AHU's / ACCU Trane Shipping: 11-13-00
Med Gas Equip. Lead-Time Squires Delivery: 11-6-00
Demo shades at main entrance TBD x
Review room numbering ARC/Lukes
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Entry Rules
lookahead window only if the planner isconfident that it can be made ready forexecution when scheduled. (Screening)
Tariq Abdelhamid- CMP831- Michigan State University 2008171
Lean Construction Institute, 2001
Screening and Constraints
Activities are made ready to be assignedy removng cons ran s.
Screening is the process of analyzing theactivities for constraints and evaluating ifthey can be removed in time for the
lannedstart.
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Mapping Language:Meets
To manage a system effectively, you might focus on the interactions of theparts rather than their behavior taken separately. - Russell L. Ackoff
PrerequisiteWork
OutputProcess
Criteria?
Tariq Abdelhamid- CMP831- Michigan State University 2008173
Resources
Lean Construction Institute, 2001
Task Explosion
Layout Excavate Form
Current CPM assumption
Layout Excavate FormStakes
SiteplanBench-
marks
LayoutPractices,Drawings
LayoutComplete
OKNoise rules,Spoil location
Holeready
OK Drawings
YesYes
Tariq Abdelhamid- CMP831- Michigan State University 2008174
Surveyor &Equipment
Equipment &Operator
Labor &Material
ActualLean Construction Institute, 2001
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Purposes of the Lookahead Process
Shape work flow sequence and rate
Match work flow and capacity
Maintain a backlog of ready work
Develop detailed plans for how work is tobe done
Tariq Abdelhamid- CMP831- Michigan State University 2008175
a ety, envronmenta , qua ty ssues
Lean Construction Institute, 2001
Master
& Phase
LAST PLANNER SYSTEM
Work
Structuring
Design
Criteria
SHOULDInformation
Selecting,
sequencing, &
sizing work we
think can be done
c e u e
Make work
ready by
Information
Selecting,
sequencing,
& sizing work
Current status
& forecastsLookahead
Workable
Backlog
Weekly
Work Plans
CAN
Will
Tariq Abdelhamid- CMP831- Michigan State University 2008176
,pulling, & FRS
we now
can be done
ProductionResourcesCompleted
Work
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DID
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Entry Rules
work plans only if all constraintshave been removed. (Shielding)
Tariq Abdelhamid- CMP831- Michigan State University 2008177
Lean Construction Institute, 2001
Forming the Weekly Work Plan
CAN
POSSIBLE WORKABLEBACKLOG
ELGIBLE FOR
WILL
THESE TASKSNEED TOBEMADEREADY
Tariq Abdelhamid- CMP831- Michigan State University 2008178Lean Construction Institute, 2001, T. Abdelhamid
Unless commitment is made, there are only promises and hopes... but no plans. - Peter Drucker
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Definition
Required Work Attributes To Move FromShould to Will
Soundness
Sequence
Size
Learning
Work meeting these only
goes to workable backlog
Tariq Abdelhamid- CMP831- Michigan State University 2008179
Safe Safe Safe Safe Safe!!!!!!!
Lean Construction Institute, 2001
Definition: Are assignments specific enough that the right type and amount of materialscan be collected, work can be coordinated with other trades, and it is possible to tell atthe end of the week if the assignment was completed?
Soundness: Are all assignments sound, that is: Are all materials on hand? Is designcomplete? Is prerequisite work complete? Note: During the plan week, the foreman willhave additional tasks to perform in order to make assignments ready to be executed,e.g., coordination with trades working in the same area, movement of materials to thepoint of installation, etc. However, the intent is to do whatever can be done to get thework ready before the week in which it is to be done.
Sequence: Are assignments selected from those that are sound in the constructabilityorder needed by the production unit itself and in the order needed by customerprocesses? Are additional, lower priority assignments identified as workable backlog,i.e., additional quality tasks available in case assignments fail or productivity exceedsexpectations?
Tariq Abdelhamid- CMP831- Michigan State University 2008180
Lean Construction Institute, 2001, adapted
,still being achievable within the plan period? Does the assignment produce work for thenext production unit in the size and format required?
Learning: Are assignments that are not completed within the week tracked and reasonsidentified?
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Weekly Planning
Project: Same Day SurgeryPlanner: Dena Deibert Week of 10/23/00
Make Ready Needs
Division
Remember the Five Criteria for Release ofAssignments
Defined - Sound - Proper Sequence - Right SizeAble to Learn
ResponsibleParty
Work that Must and Can BePerformed Prior
to Release of this Assignment M T W T F S Y N Comments
1 Issue vibration study Brad/STS x x x x
1 Award Bid Pack 3 Dena/Brad x x x x x
1 Reissue construction documents Jose Coordinate with Ring & DuChateau x x x x
2 Test Glycol Mains Jarosz x x x x x
3 Pour Roof Randy x
4 Confirm brick is ready Roger Spahr x
4 Stone production Rossi x x x x x Week 1 of 8
5 Complete roof framing Bob Brue x x x
ee y or anAssignment Description Done?
Tariq Abdelhamid- CMP831- Michigan State University 2008181
5 Begin roof detailing Bob Brue x x
5 Re-submit curtainwall support shops Dick x x x x
5 Issue penthouse curb ASK's Jose x x x x
6 Submit Phase 2 millwork shops Precision x
6 Deliver mock-up millwork Precision x
7 Submit additional roofing shops Scott Harms x x
8 Resubmit curtainwall shops Jim L x
8 Submit curtainwall Struct. Calcs Jim L x
8 Order Glass Jim L ARC verbally confirm dimensions x
10 Fab. Louvers Air Flow x x x x x Week 1 of 6
Lean Construction Institute, 2001
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Master
& Phase
LAST PLANNER SYSTEM
Work
Structuring
Design
Criteria
SHOULDInformation
AA
Selecting,
sequencing, &
sizing work we
think can be done
c e u e
Make work
ready byInformation
Selecting,
sequencing,
& sizing work
Current status
& forecastsLookahead
Workable
BacklogWeekly
Work Plans
Chart PPC
& Reasons
Action to
prevent
repetitive
errors
CAN
WILL
Tariq Abdelhamid- CMP831- Michigan State University 2008183
,
pulling, & FRSwe now
can be done
ProductionResources CompletedWork
PPC = DIDsWILLS
Lean Construction Institute, 2001, T. Abdelhamid
DID
AA = assignments anticipatedAMR = Assignments Made-Ready
Measuring PPC
Project: Same Day Sugery
69%Done? PPC Analysis
Remember the Five Criteria for Release of AssignmentsDefined - Sound - Proper Sequence - Right Size - Able to
Learn
ResponsibleParty
M T W T F S Y N Reasons For Variance / Comments
Review mock-up drywall dimensions Randy x x x x x Y Wardrobe dimensions changed
Review microscope vibration Study David x x x x x N
Review bids - Bid Pack 3 Dena/ Brad x x x x x Y Will award next week.
Review roofing shops J ose' x x x x x Y Week 1 of 2
Complete concrete haunches Randy x x x Y
Releae order on limestone Dena x Y
anner: ena e er
Assignment Description
PPC =
Tariq Abdelhamid- CMP831- Michigan State University 2008184
Re-submit curtainwall support shops Dick x x x x x N Waiting for curtainwall shop drwg.
Roof framing: 75% complete Bob Brue x x x x x Y
Submit Phase 2 Millwork Shops Precision x x x x N
Fabricate mock-up millwork Precision x x x x x Y Week 2 of 3
Re-submit curtainwall shops & structural calcs J im Leicht x x x N Middle of next week
Finalize review of louver shops Tony/ David x x x x Y
Review GL-1 and GL-2 ARC/J im Leight x x x Y
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Tariq Abdelhamid- CMP831- Michigan State University 2008185
Ken Gottschalk, 2002
Percent of Planned Completed - DRYWALLERS
60
70
20
30
40
50
%
Completed
Tariq Abdelhamid- CMP831- Michigan State University 2008186
0
10
3/25/2002 4/1/2002 4/8/2002 4/15/2002 4/22/2002 4/29/2002Week
Ken Gottschalk, 2002
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Ken Gottschalk, 2002
Tariq Abdelhamid- CMP831- Michigan State University 2008188
Ken Gottschalk, 2002
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Tariq Abdelhamid- CMP831- Michigan State University 2008189
Ken Gottschalk, 2002
Tariq Abdelhamid- CMP831- Michigan State University 2008190
Ken Gottschalk, 2002
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Master& Phase
LAST PLANNER SYSTEM
WorkStructuring
DesignCriteria
SHOULDInformation
AA
On Budget &Schedule?
Selecting,sequencing, &sizing work we
think can be done
c e ue
Make workready by
Information
Selecting,sequencing,& sizing work
Current status& forecasts
Lookahead
Workable
WeeklyWork Plans
Chart PPC& Reasons
Action to preventRepetitive errors
CAN
WILL
Tariq Abdelhamid- CMP831- Michigan State University 2008191
,pulling, & FRS
we nowcan be done
Backlog
ProductionResources CompletedWork
PPC = DIDsWILLS
Lean Construction Institute, 2001, T. Abdelhamid
DID
AA = assignments anticipatedAMR = Assignments Made-Ready
90%
100%
Comparing the Results -Evolution of PPC
Avg. PPC after LPSIAvg. PPC after LPSI
20%
30%
40%
50%
60%
70%
80%
PPC
Avg. PPC before LPSIAvg. PPC before LPSI
Direction of PPC before LPSI
Tariq Abdelhamid- CMP831- Michigan State University 2008192
0%
10%Last Planner System Implemented (LPSI)
1 2 3 4 5 6 7 8
MONTHS
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Productivity Evolution
1.20
1.40
Below Budget (Making $$)
Presentation materials from 3rd Annual Lean Congress. This material may be copied freely as long at it includesthe copyright statement herein. Luis Alarcon; www.leanconstruction.org
0.60
0.8