Win-win-win public works. Yuji Kishira

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<ul><li> 1. Win-Win-Win Public Works Goldratt Consulting Regional DirectorJapan TOC Advancement committee Director Yuji Kishira</li></ul> <p> 2. Japanese Public Construction Current StatusGovernment spending cut by halfOver 500,000 construction companiesSmall and medium-sized local construction companiesA series of large scale disasters are still fresh in our memory and the importance of public works is being actively discussed widely 3. Transition of construction investment (one trillion yen) 90 80 70 60 Huddle Waste of 50 Tax 40 30Many 20 Scandal 10051 52 5354 55 56 57 58 59 60 61 62 63 2 34 5 6 7 8 9 10 11 12 13 14 15 16 17(origin)The Ministry of Land, Infrastructure and Transport"Construction investment prospect" - 17 fiscal year is foreseen expecting the amount of the investment until 2002 fiscal year as for results and 15 fiscal year and 16 fiscal year. - Construction investment in government investment that country, local authority, and independent administrative agency, etc. do- 19 - 4. Continuing natural disasters 5. Ratio of amount of natural disaster damage(1970 - 2004)Japan: 15%USA: 22% The other : 58% Germany: 2%France: 2% Britain: 1% Japan - Only 0.25% of geographic area of the world accounting for 15% of the amount of the world of the natural disaster damage 6. Earthquake distribution chart of the world(1985-1994)M4 or more and 100km in depth Asa of hypocenter From the Ministry of Land, Infrastructure and Transport material 7. Expensive construction cost on severe country condition- Japan is an earthquake large country, and the measures cost is necessary.Charles de Gaulle Airport Pier of Hanshin Expressway Pier on access road In the majority of regions in France, there is no necessity of the seismic design. From the Ministry of Land, Infrastructure and Transport material 8. ConflictUndesirable Effect(UDE)Taxpayers UDE UDE of public works contractorsWaste of taxHuge deficit-Huge deficitBudget cut of public worksHuddle and many scandalsBashing that continues every dayLarge-scale natural disasterLocal contractors bankruptcy due to aCant see what they dodramatic decrease of public works investment 9. Outside of the project Cant get Not enoughmanagement budget/resourcesupportCant get supportfrom other people Project Team Not enough timeMembersChange requestWorking Very Slow decision by all the timesHard!customer or managementSuppliers Information notdelivery delay shared timely 10. Four elements of critical chain1.ODSC SURIAWASEConsensus making to have shared goals2. Backward scheduling DANDORI HACHIBUPreparation is 80% of the success of the project3.ABP(Aggressive But Possible) YUTORIEducate people while providing concentration4.Buffer Management SENTE KANRITake action before too late CCPM reminds us Japanese shop floor best practices LOGICALLY 11. Critical Chain Project Managementhuman problematic behaviors are:- Parkinsons Law (use all the time and budget given)- Murphy (anticipate unexpected problems and estimate longerschedules for tasks)- Student Syndrome (start slowly and work overnight before the duedate)- Unreported Early Finishes (finish early but use all the time forelaboration)- Multi-tasking (give top priority to all tasks and start them earlier)It is PEOPLE who run task! 12. Questions1. Need to pick up your friend at the station at 10AM. When you leave here?I needSafety!2. Need to pick up Very Important Person at the station at 10AM. When you leave here? Difference, Why?Safety bugs loves RESPONSIBILITY. 13. When Safety in the task is removeExperience andThe chain of know-how Hands 3 1.5challenging spirit. on transfer to young engineers4 3 1.5 Source of the6 8 Team workMore motivation to 7The boss protect deeply think to 3the site with thefinish on time 4 2 buffer. Project Buffer =Report problemOYAKATA BufferThe person in the next before too late6task anxiously waiting to8start on-time612 10 6 8 14. BUFFER MANAGEMENT Looks likeexactly what excellent OYAKATA DOES!The buffer management takes a measure before it becomes too late. Tool of Prevention management" SENTE KANRI 15. ODSCObjectivesBuild bridgeDeliverablesBuild bridgeSuccess CriteriaBuild bridge The mechanism exist to confusethe means with the objectives SURIAWASE 16. Backward PlanningIt is a usual and natural idea. To take the 10 oclock trainThe necessary condition logic Task TaskTaskTargetSuccess senarioDandori Hachibu 17. First Critical Chain ImplementationYoung foreman 18. ODSC: Objective, Deliverable, Success CriteriaObjective -Reinforce river bank for flood protection-Protect local residents from typhoon-Build high quality easy maintenance river bank-Must be completed by Aug before typhoon season-Build trust with government officials and localresidents-Make high profit (Pay tax)Deliverable -Super reinforced bankSuccess -Complete by the end of JulyCriteria-Quality rating &gt; 85-Profit &gt;16%-Zero accident 19. Test Run Project Results 30% Reduction project durationEndo certainly made great profits in this test project, but far more important is his growth. Endo definitely3month Early Cash FlowChanged. He became a really dependable foreman.The Tonebetsu River project is already project in the pastwhichSharing Know-how with young foreman achieved a great result.For Endo, the real challenge is to see achievement inthe next project given. (I believe he will make it.)The best outcome of the Tonebetsuto ManagmentthatForemen participation River project isEndo became one of our best foreman, which is aidedby CCPM.Collaboration acceleration with subcontractorsWe can expect more profits from Endos projects now andin the future, which is far more important of this singleproject success. That is because Endo has overcome abarrier. Its really amazing. 20. Can we help RED project? I will finish my project earlyand help RED project.We will also help it!We will offer our resource toHelp RED projectEach project manager starts to care the other projectswith management view! Help each other 21. Shared Safety meansIt is late because of me .Source of teamworkMulti-tasking prevented and allowing concentration on one taskThe buffer management is a tool for Sente KanriMutual trust to show of bellies each other 22. Situation of present public works(public office side) 23. Research Institute of Construction and Economy Current Reality Tree structural tree Slow finalization of Spec Synchronization information DAI MONDAI ! Cost Resource shortage increase Or Excess resource Information does notSudden workstransfer to contractors required timely manner One Day Response Project!Construction economy report No.46 Quotation from P104 in April, 2006 24. Public works wiillprovide good quality infractruture whilesupporting government financial difficulty turnaroundOne Day Response projectContractors can be chosen Government by quality history, proposalssupervisors get more and costflexible for change Contractor can Have more Make a effectiveadvantage in the proposals government bitContractor canMake quicker Quality of publicdecision Contractors canwork lawchoose the bit implementationContractor management Governmentunderstand statussupervisors areTax income more motivated increaseContractors haveeffective informationMake Tax payersduring constructions /resident happyContractors getRealize economichigher quality effect ealier record WinWinWinContractors arehappyEnhance competancy of government supervisorsPublic works finish Contractors makeearlierprofitImplement One Day ResponseProject 25. Critical chain project network of One Day Response project Move construction faster Shorten lead time for construction works Eliminate idle time during construction Contractors make profits Buffer safety makes safer and high quality works Communication enhancement Good for environment and local resident Realize economic effect earlier Human resource development 26. One Day Response project test constructionContractor Public Office Construction finish earlier Easy to guide because it consults Teamwork with contractors/officersahead of time. Residents are very pleasedThe overtime work decreases. Quality enhancement.The royal road of OJT. See the brightness in the constructionOfficers role in public works reminded Business in the futureWinHuman resource developmentConstructionThe worksLearn byQuick response is uncertain. withoutexperience of Educate peopleWithout Safetysafetytheir own quicklyIt is not our gratitude for constructions ending early.An inconvenience under construction finish early.It becomes convenient.Good teamwork of contractors/offices makes image drasticImage change of public worksThe load to natural environment is surely reduced, too. A bureaucracyQuick action Is always slow creates trust Resident 27. Unexpected synergy effectPublic Office Contractor One DayResponseProject Trust TOCCritical chain Return to the origin of public works Sharing buffer : the source of team work. 28. Kishiras 3C Management Positioning Map SimpleCommunication &amp; Collaboration HumanMake Focusprofit with Report simpleteamwork remaining date SuperficialManagement Projectby developing report managermanage project human Trustresource Fulfillment CommitmentControl JobdescriptionCommunicationMakemanualsRigmaroleand rulesManagementHead QTRby developing controlDistrust projectmanual peopleForced toDo itdo it Command &amp; Control Complex 29. Big change in management focusIndividual Safety progressManagementBufferODSC YUTORI 30. 5 pilots project result in Kochi PrefectureHigh -Duration 20% reduced in average while 28% delay in non-CCPM site -Profit 7 % up average -Average quality point : 80 (where generalCCPM Level average is 73) Profit increase Profit Increase Profit increase Profit decrease (due to big change of material)Low But it duration is 50% reduction28% delayLowOne Day Response Level HighSource: Kochi Prefecture 31. Construction quality enhancementBy CCPM in Kochi Prefecture82Standard81807978777675747372 32. Declaration of Win-Win-Win Public Work ReformMay 8 2007We strongly remind ourselves of our very important responsibility of publicworks to secure peoples safety and national land safety. To bring outmaximum benefit for society, both government officials and contractors worktogether on public works by providing better products with faster speed. Thisbrings benefits to all of residence, government and contractors and supportto overcome financial difficulty of Japan Government. We declare herewith westrongly advance Win-Win-Win Public Work Reform. 33. One Day Response Update snap shot in JapanFY2005 1 pilot runFY2006 15 MLIT Hokkaido Pilot runsFY2007 2523 MLIT across JapanFY2008 &gt;4000FY2009 &gt;12000 all MLIT public constructionMany positive feedbacks to request to expand more from contractorsAround half of 47 prefectures started pilot runsSome of major cities throughout Japan started implements 34. Political ScandalsNaturalTroubles BudgetDisasters Claims Cut Too muchwork chasing at us!Can not liveBut whatSick employeesanymore in we can do?De-motivated this situation! 35. 2006 Miyazaki PrefectureAug Nikkei Construction Kyoto Prefecture ArticleSept Construction Management Meeting in KyushuCCPM Seminar by Yuji KishiraNomination of pilot projectNov 1 Started the projectNov 16 Scandal 36. Kataino River Bank Emergency Flood Protection One Day Response Meeting2006 Dec 08 (When Governor, general manager, managers arrested)Joint meeting contractor and Government officialLets fight with time together! 37. Critical Chain saves 30,000 people livesIn Miyazaki prefecture 38. MLIT University Ministry Land, Infrastructure, transportation and TourismOver 120 executives learn TOC everyyear as official training 39. Dr. Eli Goldratt commentToyota changed plants worldwide and in the future, it will be said that MLITchanged all government management. You should recognize such hugeimpact to the world 40. Visited Colombia Government in 2008Mr. Andres Uriel GallegoMs. Carolina RenteriaMinster of infrastructure Director generalEconomy planning 41. 2009 Aug BrazilKey note in conferenceTop page of project management magazineWA book published 42. 2009 Korea 43. Workshop of Win-Win-Win public work in Fukushima 2010 Dec 44. ODSC in Gemba (construction site) Voices from local residents Very goodobjective for us!Finish pictureODSC 45. Evaluation of Proof of Conceptcompleted Reduced 46. Disaster Mega Earthquake Mar 11 , 2011 47. Focus! Objectives! Shared in Gemba!! Ni! 48. Message from Fukushima government officersWe will rebuild beautiful Fukushima! 49. Decreasing and Increasing By CCPMDecreasingIncreasingHigh PressureFlexibilityNegative discussionPositive discussionWaste of time and moneyFocusWorry/Stress SafetyAccidentsCustom of thinking deeplyComplex document and reportHelping each other and empathyConflict Smiling faces happy employeesSilo decisionHolistic decisionBig enterprise disease Team work across organizationsWorry about resource development Wonderful personnel growthIrritation FulfillmentComplex discussion Profit- Errors/Re-work- QualityOvertime workTime with family-Quality of Life 50. Risk!UncertaintyStudent Bug Multitusking BugPerkinsons law BugSafety BugPolishing Finish BugProject environment Copy Right Mayuko Kishira 51. Spirit of WA Respect harmony .The first charter of Japan first constitutionAD604 (Shotokutaishi)Win-Win-WinGood for customers, Us and Public(Omi business principle ) 52. Three Japanese Words to Know about Project Dandori HachibuPreparation is 80% of your project sucessMONDAI NAI!No Problem!WA Harmony, Peaceful, Japanese 53. Win-Win-Win Public Reform Symbol Now Everywhere In JapanThis is just a beginning to make a our world little DOMO ARIGATO GOZAIMASU! 54. Special thanks toDr. Goldrattto warm appreciation andCredit to my work </p>