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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

    Tariq Abdelhamid- CMP831- Michigan State University 20083

    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:

    Tariq Abdelhamid- CMP831- Michigan State University 20085

    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.

    Tariq Abdelhamid- CMP831- Michigan State University 20087

    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

    Tariq Abdelhamid- CMP831- Michigan State University 20089

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200811

    Quantity (Lot Size)

    Costs

    Carrying Cost

    EOQ

    Current State of Construction

    Tariq Abdelhamid- CMP831- Michigan State University 200812

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    (Adrian & Adrian 1995)

    Tariq Abdelhamid- CMP831- Michigan State University 200813

    Current State

    The 6th annual survey of construction

    Between 40 and 50 percent of allconstruction projects are runningbehind schedule ( same as previous

    Tariq Abdelhamid- CMP831- Michigan State University 200814

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200815

    concrete, or the cost of labor.

    Survey (cont.):

    Trust and integrity are required ingredients

    Current State

    for improving communications and

    collaboration

    Tariq Abdelhamid- CMP831- Michigan State University 200816

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200818

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200819

    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.

    Tariq Abdelhamid- CMP831- Michigan State University 200820

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200821

    Inefficient teamwork/communicationSlowdown/stoppage in work processes

    Tariq Abdelhamid- CMP831- Michigan State University 200822

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    g

    ommonUnderstandi

    Tariq Abdelhamid- CMP831- Michigan State University 200823

    C

    Design/Build

    CM Agency/At-Risk

    CM/GC Hired

    Engineers Hired

    Tariq Abdelhamid- CMP831- Michigan State University 200824

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200825

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200826

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200827

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200829

    Tariq Abdelhamid- CMP831- Michigan State University 200830

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200831

    Tariq Abdelhamid- CMP831- Michigan State University 200832

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200834

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200835

    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)

    Tariq Abdelhamid- CMP831- Michigan State University 200836

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    Current ProductionControl

    PLANNING THEINFORMATION

    PROJECTOBJECTIVES

    SHOULD

    EXECUTINGTHE PLANRESOURCES DID

    Tariq Abdelhamid- CMP831- Michigan State University 200837

    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)

    Tariq Abdelhamid- CMP831- Michigan State University 200838

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200840

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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?

    Tariq Abdelhamid- CMP831- Michigan State University 200844

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    WORK SAMPLING

    Tariq Abdelhamid- CMP831- Michigan State University 200845

    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?

    Tariq Abdelhamid- CMP831- Michigan State University 200847

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200848

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200849

    Little learning; repetitive failures.

    Ignores the creation and delivery of value

    Exhibits the Punch List SyndromeLean Construction Institute, 2001

    Changing Paradigm owners want more

    Tariq Abdelhamid- CMP831- Michigan State University 200850

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200852

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200856

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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)

    Tariq Abdelhamid- CMP831- Michigan State University 200857

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200864

    Lean Construction considers all three and

    more

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    WE PRACTICE:

    PROJ ECT PLANNING ANDCONTROL; BUT WE ALSONEED:

    Tariq Abdelhamid- CMP831- Michigan State University 200865

    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,

    Tariq Abdelhamid- CMP831- Michigan State University 200866

    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

    Tariq Abdelhamid- CMP831- Michigan State University 200868

    .

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    LEAN Construction allows you to arrive atall your goals without a trade-off

    Time

    ParticipantSatisfactionSafety

    Cost Quality

    Tariq Abdelhamid- CMP831- Michigan State University 200869

    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.

    Tariq Abdelhamid- CMP831- Michigan State University 200870

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200871

    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.

    Tariq Abdelhamid- CMP831- Michigan State University 2008

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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

    Tariq Abdelhamid- CMP831- Michigan State University 2008

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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

    Tariq Abdelhamid- CMP831- Michigan State University 200884

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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)

    Tariq Abdelhamid- CMP831- Michigan State University 200888

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 200896

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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

    Tariq Abdelhamid- CMP831- Michigan State University 2008108

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    Tariq Abdelhamid- CMP831- Michigan State University 2008109

    Tariq Abdelhamid- CMP831- Michigan State University 2008110

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    g

    ommonUnderstandi

    Tariq Abdelhamid- CMP831- Michigan State University 2008111

    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

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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

    116

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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

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 2007

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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

    Tariq Abdelhamid- CMP831- Michigan State University 2008140

    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 .

    Tariq Abdelhamid- CMP831- Michigan State University 2008146

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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.

    Lean Construction Institute, 2001

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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)

    Tariq Abdelhamid- CMP831- Michigan State University 2008154

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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.

    Lean Construction Institute, 2001

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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.

    Lean Construction Institute, 2001

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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

    Lean Construction Institute, 2001, T. Abdelhamid

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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.

    Tariq Abdelhamid- CMP831- Michigan State University 2008172

    Lean Construction Institute, 2001

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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

    Lean Construction Institute, 2001, T. Abdelhamid

    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

    Tariq Abdelhamid- CMP831- Michigan State University 2008182Howell (2001) Lean Construction Institute

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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

    Lean Construction Institute, 2001

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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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    Tariq Abdelhamid- CMP831- Michigan State University 2008187

    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

    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

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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