Project Team 191: Project Team 191: Lean Principles in ConstructionLean Principles in Construction

Lean Principles in Construction Project TeamLean Principles in Construction Project Team

Josh BalonickJosh Balonick University of ColoradoUniversity of ColoradoBrian BarkerBrian Barker GUB-MK Constructors / Parsons E&CGUB-MK Constructors / Parsons E&CBrian BeckerBrian Becker General MotorsGeneral MotorsTony BuzzeoTony Buzzeo PraxairPraxairJim DiekmannJim Diekmann University of ColoradoUniversity of ColoradoEric DeLaneyEric DeLaney BMW ConstructorsBMW ConstructorsSant HaritSant Harit Washington Group InternationalWashington Group InternationalMark KrewedlMark Krewedl University of ColoradoUniversity of ColoradoDan KummDan Kumm Butler ConstructionButler ConstructionMag RiskMag Risk Johnson ControlsJohnson ControlsBob SchulzBob Schulz Dow ChemicalDow ChemicalLou TroendleLou Troendle Washington Group InternationalWashington Group InternationalDavid TweedieDavid Tweedie Fru-Con Construction Corp.,Fru-Con Construction Corp., Chair ChairCraig WrightCraig Wright Black & VeatchBlack & Veatch

Project Team 191 MissionProject Team 191 Mission

To examine the potential for the use of To examine the potential for the use of

Lean Principles that were developed in Lean Principles that were developed in

the manufacturing industry for adaptation the manufacturing industry for adaptation

and use in the engineer-procure-and use in the engineer-procure-

construct (EPC) industry.construct (EPC) industry.

The Power of LeanThe Power of Lean

“Catch up with America in three years. Otherwise the automobile industry of Japan

will not survive.”

“Catch up with America in three years. Otherwise the automobile industry of Japan

will not survive.”― ― Kiichiro ToyodaKiichiro Toyoda

Founder, Toyota Motor Co. Founder, Toyota Motor Co. 1894-19521894-1952

Lean in ManufacturingLean in Manufacturing

Five Principles of Lean Manufacturing: Five Principles of Lean Manufacturing:

1.1. Precisely specify value by specific product.Precisely specify value by specific product.

2.2. Identify the value stream for each product.Identify the value stream for each product.

3.3. Make value flow without interruptions.Make value flow without interruptions.

4.4. Let the customer pull value from the producer.Let the customer pull value from the producer.

5.5. Pursue perfection.Pursue perfection.

―― James P. WomackJames P. WomackFounder, Lean Enterprise InstituteFounder, Lean Enterprise Institute

Opportunity for Improvement Opportunity for Improvement in Construction Todayin Construction Today

Current Current ManufacturingManufacturing

Value Value AddedAdded

62%62%

SupportSupportActivityActivity

12%12%

WasteWaste26%26%

Current Current ConstructionConstruction

Value Value AddedAdded

10%10%

SupportSupportActivityActivity

33% 33%

WasteWaste57%57%

Lean Construction DefinedLean Construction Defined

• eliminating waste.eliminating waste.

• meeting or exceeding all customer requirements.meeting or exceeding all customer requirements.

• focusing on entire value stream.focusing on entire value stream.

• pursuing perfection in execution of constructed pursuing perfection in execution of constructed project.project.

The Continuous Process of:The Continuous Process of:

Drivers of Lean ManufacturingDrivers of Lean Manufacturing

• Mass production practicesMass production practices

• Limited spaceLimited space

• Reduced inventoryReduced inventory

• Limited natural resourcesLimited natural resources

• Lower demandLower demand

• Quality improvementQuality improvement

Drivers of Lean ConstructionDrivers of Lean Construction

• WasteWaste

• Non-standardized workplaceNon-standardized workplace

• Individual contract structureIndividual contract structure

• Fragmented relationshipsFragmented relationships

• Supply chain integrationSupply chain integration

• Available work force Available work force

• Produce one-off projectsProduce one-off projects

Use of lean manufacturing principlesresulted in better optimization of resources.

Use of lean manufacturing principlesresulted in better optimization of resources.

Value Added Work ImprovementsValue Added Work Improvements

Hours/VehicleHours/Vehicle

0%0%

20%20%

40%40%

60%60%

80%80%

100%100%

120%120%

1979

1979

1981

1981

1983

1983

1985

1985

1987

1987

1989

1989

1991

1991

1993

1993

1995

1995

1997

1997

1999

1999

2001

2001

Val

ue

Ad

ded

Wo

rk Im

pro

vem

ents

Val

ue

Ad

ded

Wo

rk Im

pro

vem

ents

Progress with Lean ManufacturingProgress with Lean Manufacturing

Accomplishments of Lean ManufacturingAccomplishments of Lean Manufacturing

• Half the human effort in the factoryHalf the human effort in the factory

• Half the manufacturing space neededHalf the manufacturing space needed

• Half the investment in toolsHalf the investment in tools

• Half the engineering hours to develop a new product in Half the engineering hours to develop a new product in half the timehalf the time

• Less than half the needed inventory on siteLess than half the needed inventory on site

• Fewer defectsFewer defects

• Produces greater and ever growing variety of products Produces greater and ever growing variety of products

Lean Construction PrinciplesLean Construction Principles

• Eliminate wasteEliminate waste

• Customer focusCustomer focus

• Workplace standardizationWorkplace standardization

• Culture/people Culture/people

• Continuous improvement, built-in qualityContinuous improvement, built-in quality

Waste in Construction ProcessesWaste in Construction Processes

• Excessive material handlingExcessive material handling

• ReworkRework

• Design errorsDesign errors

• Conflicts between tradesConflicts between trades

• Conflicts between other contractorsConflicts between other contractors

• Ineffective supply chainsIneffective supply chains

Rewards to “GO LEAN”Rewards to “GO LEAN”

• Reduce waste / improve efficiencyReduce waste / improve efficiency

• Improve safetyImprove safety

• Lower costLower cost

• Reliable SchedulesReliable Schedules

• Fewer defects / less reworkFewer defects / less rework

You have the opportunity to be theYou have the opportunity to be the

construction industry leader.construction industry leader.

Current Current ManufacturingManufacturing

Value Value AddedAdded

62%62%

SupportSupportActivityActivity

12%12%

WasteWaste26%26%

Current Current ConstructionConstruction

Value Value AddedAdded

10%10%

SupportSupportActivityActivity

33% 33%

WasteWaste57%57%

Waste Reduction = SustainabilityWaste Reduction = Sustainability

The Journey to LeanThe Journey to Lean

Lean Works!!Lean Works!!Lean Works!!Lean Works!!

• Literature researchLiterature research

• Global interviews with early adoptersGlobal interviews with early adopters

• Meetings with prominent lean researchersMeetings with prominent lean researchers

• Activity case studiesActivity case studies

• QuestionnairesQuestionnaires

• Literature researchLiterature research

• Global interviews with early adoptersGlobal interviews with early adopters

• Meetings with prominent lean researchersMeetings with prominent lean researchers

• Activity case studiesActivity case studies

• QuestionnairesQuestionnaires

Introduction – Lou Troendle, Washington Group Int.Introduction – Lou Troendle, Washington Group Int.• Change of cultureChange of culture• Path forwardPath forward• Self-assessment toolSelf-assessment tool

PanelistsPanelists• Jack Hallman, GM: Owner’s PerspectiveJack Hallman, GM: Owner’s Perspective• Mike Haller, Walbridge Aldinger: Visual ManagementMike Haller, Walbridge Aldinger: Visual Management• Paul Reiser, Boldt: Production Planning/Culture ChangePaul Reiser, Boldt: Production Planning/Culture Change• Dan Kumm, Butler: Eliminate WasteDan Kumm, Butler: Eliminate Waste• Jim Diekmann, CU Boulder: Principal InvestigatorJim Diekmann, CU Boulder: Principal Investigator

Q&AQ&A

Implementation SessionImplementation Session

Georgia AGeorgia A

Wednesday: 4:30-5:30 pmWednesday: 4:30-5:30 pm

Thursday: 9:15-10:15 amThursday: 9:15-10:15 am

Implementation SessionImplementation Session