lean_construction_principles_may_2011.pptx

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    LEAN CONSTRUCTION PRINCIPLES

    Dick Bayer May 16, 2011

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    BACKGROUND

    Use the contractto influence how

    we do work on

    the project

    Try partnering toinfluence how

    we do work on

    the project

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    BACKGROUND

    O A R

    Change the observer

    Cha

    nge the

    operatingsystem

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    HOW DO WE MANAGE PROJECTS NOW?

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

    ProgramDesign toProgram

    PriceRedesignto Match

    Price

    2011 Lean Construction Institute

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    HOW DO WE MANAGE PROJECTS NOW?

    Break project into activities, estimating durationand resource requirements for each activity and

    placing them in a logical order with CPM

    Demolition

    Grade & Fill

    Foundations

    2011 Lean Construction Institute

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    HOW DO WE MANAGE PROJECTS NOW?

    Assign or contract each activity, give start notice

    and monitor safety, quality, time and cost

    standards. Act on negative variance from

    standards

    2011 Lean Construction Institute

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    HOW DO WE MANAGE PROJECTS NOW?

    Coordinate with master schedule and weekly

    meetings

    2011 Lean Construction Institute

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    HOW DO WE MANAGE PROJECTS NOW?

    Reduce cost by productivity improvement

    Reduce duration by speeding each piece or

    changing logic

    2011 Lean Construction Institute

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    HOW DO WE MANAGE PROJECTS NOW?

    Improve quality and safety with inspection

    and enforcement

    2011 Lean Construction Institute

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    TRADITIONAL PROJECT MANAGEMENT:

    A COHERENT COMMON SENSE

    Activity Centered

    (CPM)

    Command &

    Control

    Organization

    Transactional

    OperatingSystem

    Commercial

    2011 Lean Construction Institute

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    LEAN PROJECT MANAGEMENT:

    A MORE COHERENT COMMON SENSE

    2011 Lean Construction Institute

    Flow CenteredCollaborative

    Organization

    Relational

    OperatingSystem

    Commercial

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    LEAN TECHNIQUES AND PROCESSES

    Three opportunities of lean

    construction and design:

    Impeccable coordination

    The project as a production

    system

    The project as collective

    enterprise

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    LEAN TECHNIQUES AND PROCESSES

    Impeccable coordination

    Understanding the work

    Collaborative planning

    Reliable promising

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    LEAN TECHNIQUES AND PROCESSES

    Understanding the Work: Traditional Process

    Common

    Un

    derstanding

    CM/GC Hired

    Major Trades Hired

    Pre-Construction Services

    Architect Hired

    Engineers Hired

    100%

    SD DD CD

    ConstructionOwner

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    LEAN TECHNIQUES AND PROCESSES

    Understanding the Work: Lean Project

    Time

    Common

    U

    nderstanding

    CM/GC Hired

    Concept Design Implementatio

    n

    Construction

    Architect Hired

    Engineers Hired

    100%

    Major Trades Hired

    Pre-Construction Services

    Valid.

    Owner

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    LEAN TECHNIQUES AND PROCESSES

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    PARADE OF TRADES: ASSUMPTIONS

    1. The project is complete when 35 units have been processed

    by each of seven trades in sequence.2. The trades come onto the project a week apart. Work is

    completed and available to the next trade once a week.

    3. The trades work in sequence, with each following trade able

    to work only on what was produced in the previous week bythe prior trade.

    4. Work is done by rolling a die (singular of dice) and passing

    the number of units rolledup to the number of units the

    trade has to work on.

    5. The number rolled represents the amount of work

    accomplished each week by the crew. On average each crew is

    able to produce one unit of work in the week.

    2009 Lean Construction Institute18

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    Move 35 units of work through 7 trades.

    Work is completed at the end of the week and passed to nexttrade. Place materials on table as shown.

    Chips (the units of

    work) & Score

    SheetDie

    Concrete

    Mason

    Facade

    Paint

    Electrical

    Plumber

    Carpenter 19 2009 Lean Construction Institute

    PARADE OF TRADES

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    1. Distribute score

    sheets as directed

    2. Chips on the left of

    Concrete

    3. Establish queue

    spaces betweeneach trade and cup

    at end.

    4. Give die to Painter

    5. FUNDAMENTALRULE: Chips move

    right, dice move left

    2009 Lean Construction Institute20

    PARADE OF TRADES

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    21

    Mason rolls 2,

    moves 2, leaving 1 in

    inventory.

    Hands the die to

    Concrete.Records the result.

    2011 Lean Construction Institute

    PARADE OF TRADES

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    Concrete rolls 3 and moves 3 chips.

    Hands the die to the painter!

    Records the result.

    22

    End of Week 1

    Painter says,

    Beginning week 2

    Die passes left all the way

    around the circle to the

    Mason.

    2011 Lean Construction Institute

    PARADE OF TRADES

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    23

    Concrete rolls 2, passes 2,records.

    Hands die to Painter.

    Painter says, Beginning

    week 3.

    Week 2: Mason rolls 2; passes 2, 1 ininventory. Mason records 2, hands die to

    Concrete.

    2011 Lean Construction Institute

    PARADE OF TRADES

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    Week 3: Facade rolls, passes & records.

    Hands die to Mason. Mason rolls, recordsand hands die to Concrete. And so it goes.

    2011 Lean Construction Institute

    PARADE OF TRADES

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    Concrete

    Carpenter

    Mason

    Facade

    Electrical

    Paint

    35

    Plumber

    Chips

    Keep

    passing

    the dieto the

    left!

    25 2009 Lean Construction Institute

    PARADE OF TRADES

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    PARADE OF TRADES

    Record the week

    each Trade finishes.Sum and record the

    Available Capacity

    for all Trades. Sum

    and record the totalRemaining

    Inventory for all

    Trades except

    Concrete. Note the

    highest amount of

    Inventory in any

    week for each

    trade. Call out

    scores when asked. 26

    Craft Week CompleteTotal Capacity

    (Sum "Column 1")

    Total Inventory

    (Column 3)

    Highest inventory

    in any week forthis trade

    Concrete

    Mason

    Faade

    Carpenter

    Plumber

    Electrical

    Paint

    Sum ofColumn

    Circle Color of Dots on Die Blue Black Red

    2011 Lean Construction Institute

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    27 2011 Lean Construction Institute

    PARADE OF TRADES

    Scheduling:

    How many weeks will

    it take you to move 35

    pieces of workthrough 7 trade

    stations?

    Profitability:

    Whats the number of

    resources you will use

    to move 35 pieces ofwork through 7 trade

    stations?

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    RESULTS

    1.2.2.5.5.6 1.2.3.4.5.6 2.2.3.4.5.5 2.3.3.4.4.5 3.3.3.4.4.41.1.1.6.6.6

    Average

    Worst

    Best

    28 2011 Lean Construction Institute

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    LEAN TECHNIQUES AND PROCESSES

    Collaborative Planning

    Delay decisions to last responsible

    moment

    Use Pull Planning to Create Schedules

    Reliability of work flow

    Only do work to release downstream crews(important also in design)

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    LEAN TECHNIQUES AND PROCESSES

    Collaborative

    Planning

    Chilled WaterPlant

    3-D BIM model,

    located the

    equipment on the pad,connected the piping and

    identified the hangers . . .

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    LEAN TECHNIQUES AND PROCESSES

    Collaborativ

    e

    Planning:

    . . .then

    designed the

    structure to

    carry the

    building

    components

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    LEAN TECHNIQUES AND PROCESSES

    Collaborative

    Planning

    Short loopdesign iterations

    using budget as a

    design criteria

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    LEAN TECHNIQUES AND PROCESSES

    Collaborative Planning: Set Based Design

    Create Analyze Converge Decide

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    LEAN TECHNIQUES AND PROCESSES

    Reliable Promising:

    in Design and

    Construction

    Pull planning for

    design efforts

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    LEAN TECHNIQUES AND PROCESSES

    Reliable Promising:

    in Design and

    Construction

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    LEAN TECHNIQUES AND PROCESSES

    Reliable Promising: in Design and

    Construction

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    IMPECCABLE COORDINATION & PRODUCTIONSYSTEM DESIGN

    2011 Lean Construction Institute

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    Begin with blank card

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

    2011 Lean Construction Institute

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    2011 Lean Construction Institute

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    Station 1 performs any necessary layout

    for installation

    2011 Lean Construction Institute

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    Station 2 is responsible for assuring batch

    size

    Batches of 5 must be punched and

    secured with a paper clip

    2011 Lean Construction Institute

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    Station 3 is responsible for

    installing the green dot

    2011 Lean Construction Institute

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    Station 4 is responsible for installing 3

    red dots

    2011 Lean Construction Institute

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    Station 5 is responsible for installing the

    yellow dot

    2011 Lean Construction Institute

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    Station 6 is responsible for installing

    star on yellow dot

    2011 Lean Construction Institute

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    PHASE 1 LOGISTICS

    Workstations in work flow sequence

    Materials located at workstation

    Workstations 2-7 have an incoming queue

    space

    Completed Batches of 5 placed in queue

    space of next station

    Batches remain together until final

    inspection

    2011 Lean Construction Institute

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    PHASE 1 POLICIES

    Workers perform only their assigned tasks - NO

    THINKING

    Maintain Batch integrity - BUILD IT IF YOU CAN

    and PASS IT ON IF YOU CANT.

    QC Problems only detected by Inspector - NOFEEDBACK - NO TALKING

    All QC problems set aside by inspector as rework -

    TURN UPSIDE DOWN

    QC Inspector announces first good product.

    Assemblers are paid by the piece, period.

    2011 Lean Construction Institute

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    PERFORMANCE METRICS

    Production: the number of good cards

    produced in each 6 minute phase.

    Time: the time it takes the first good card

    to get through the system.

    Rework: the number of cards set aside to

    indicate defects in configuration or fit.

    Work-in-Progress Inventory (WIP): the

    number of subassemblies on the table at

    the end of the 6 minute phase.

    2011 Lean Construction Institute

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    YOUR HYPOTHESES

    How many good cards will your team producein Phase I?

    How long will it take for you to produce the

    first good card? How much rework will you generate (cards set

    aside)?

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

    2011 Lean Construction Institute

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    HOW COULD THIS SYSTEM BE

    REDESIGNED FOR BETTER

    PERFORMANCE?

    2011 Lean Construction Institute

    PHASE 2 LOGISTICS

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    PHASE 2 LOGISTICS

    Workers may have only one assembly at their

    workstation

    Only 1 assembly allowed in queue space

    between stations (Batch size of 1)

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

    Workstations in Work Flow Sequence

    Materials located at station

    Stations 2-7 have an incoming queue space

    2011 Lean Construction Institute

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    PHASE 2 POLICIES

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

    All QC problems set aside as rework at stationdiscovered.

    TURN UPSIDE DOWN

    Everyone is paid hourly wages plus a bonus forteam performance.

    Workers perform only their assigned tasks Workers cannot fix QC problems from upstream

    Inspector announces first good card.

    2011 Lean Construction Institute

    PHASE 3 LOGISTICS

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    PHASE 3 LOGISTICS

    Workload may be re-sequenced and/or

    rebalanced by the team Workers may have only one assembly at their

    workstation

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

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

    Workstations in Work Flow Sequence Materials located at station

    Stations 2-7 have an incoming queue space

    2011 Lean Construction Institute

    PHASE 3 POLICIES

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    PHASE 3 POLICIES

    Workers perform ANY step in theproduction process.

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

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

    for team performance.

    Inspector announces first good card.

    2011 Lean Construction Institute

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    YOUR HYPOTHESES

    How many good cards will your teamproduce in Phase III?

    How long will it take for you to produce the

    first good card?How much rework will you generate (cards

    turned upside down)?

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

    2011 Lean Construction Institute

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    THE DOT GAME

    1. What are the key points or lessons for you?

    2. How might these apply to designing and

    building? How could you use what you have

    learned on your project?

    2011 Lean Construction Institute

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    GOALS FOR PRODUCTION SYSTEM DESIGN

    Match throughput rate to demand rate Minimize cycle time

    Reduce WIP to the minimum needed tomaintain throughput

    Minimize resources required

    2011 Lean Construction Institute

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    LEAN TECHNIQUES AND PROCESSES

    Reliable Promising: in Design andConst.

    0

    0.1

    0.2

    0.3

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    0.50.6

    0.7

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    1

    0

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    0.7

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    1

    33308333163332333330333373334433351333783338533393334063342733432 33439

    PPC

    4 Week Moving Average

    Planning System Measurement

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    LEAN TECHNIQUES AND PROCESSES

    Production System Design

    C Q S OC SS S

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    LEAN TECHNIQUES AND PROCESSES

    Production System Design:

    Target Value Design

    Pull planning

    Built in Quality Plan Safety Plan

    First Run Studies

    Metrics

    LEAN TECHNIQUES AND PROCESSES

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    LEAN TECHNIQUES AND PROCESSES

    Collective Enterprise: Maximize the whole, not

    the pieces

    LEAN TECHNIQUES AND PROCESSES

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    LEAN TECHNIQUES AND PROCESSES

    Collective Enterprise: Maximize the whole, not

    the pieces

    Contingency

    CM/GC

    Architect

    Mechanical

    Electrical

    Engineering

    Steel

    Drywall

    Conc. Civil

    Glazing

    Profit

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    BUILDINGS LEAK AT THE

    INTERSECTION OF CONTRACTS

    Waterproofing

    Structural steel

    Roofing

    Window

    Caulking

    Masonry

    Concrete

    Excavation

    Foundation

    Wall stud

    Todd Zabelle

    2010 Lean Construction Institute

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    KEY LEARNINGS

    The larger system is the focus of managementattention, not local optimization

    Stakeholder interests are aligned through

    shared risk and reward Product life cycle stages are considered in the

    development of the value equation

    Product and process are designed together;indeed, all design criteria are considered when

    generating and selecting from design options

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    KEY LEARNINGS

    Downstream players are involved in upstreamwork, and vice-versa

    Continuous learning and innovation is the real

    end game Variation is attacked and reduced variation in

    work load, in process durations, in product

    quality, in plan reliability,

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    KEY LEARNINGS

    Inventory, capacity, schedule and financialbuffers are sized and located to perform their

    function of absorbing variability that cannot yet

    be eliminated

    The rule followed for release of work between

    connected specialists is: Flow where you can, Pull

    where you cant, Push where you must

    Activities are performed at the last responsible

    moment

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    WHOS DOING LEAN?

    Healthcare Projects (IPD or IPD-ish):

    Sutter Health, Northern California

    Camino Medical Center (DPR)

    Castro Valley (Turner)

    Cathedral Hill (Herrero/Boldt)

    Palo Alto Medical Center (Skanska)

    Sacramento General (renovation/new: Boldt)

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    WHOS DOING LEAN?

    Healthcare Projects:

    UHS, company-wide

    Texhoma

    Temecula: Reducing sqft costs to $900/

    SSM,

    Cardinal Glennon, St. Louis

    St. Claire, Fenton, Mo.

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    WHOS DOING LEAN?

    Healthcare Projects:

    Affinity Healthcare, Appleton, Wis.

    Augusta General, Maine

    Martin Memorial, Stuart, Fla.

    Seattle Childrens

    Theda Care, Wisconsin

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    WHOS DOING LEAN?

    Public Projects:

    School Projects:

    Middle School, Dallas

    Middle & High Schools, Los

    Angeles

    Community College, San Diego

    St. Olaf College, Minnesota

    Community College, Cleveland

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    WHOS DOING LEAN? DESIGN FIRMS

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    WHOS DOING LEAN? CONSTRUCTION FIRMS

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    WHOS DOING LEAN? CONSTRUCTION FIRMS

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    WHOS DOING LEAN? TRADES

    Visit www.leanconstruction.org for all of our Corporate

    members

    http://www.leanconstruction.org/http://www.leanconstruction.org/
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    THANKS!

    Dick Bayer

    Interim Executive Director

    [email protected]

    858-373-8449

    mailto:[email protected]:[email protected]