Introduction to Lean Construction Charlotte, North ... · Introduction to Lean Construction...

Introduction to Lean ConstructionCharlotte, North Carolina

August 3, 2011

The Lean Construction Institute and the Carolinas Community of Practice

Introduction to Lean Construction Carolinas Community of Practice

August 3, 2011

www.leanconstruction.org 1

The Lean Construction Institute

Introduction to Lean ConstructionConstruction

Dick Bayer

Lean Construction Institute

Carolinas Community of Practice

August 3, 2011


August 3, 2011


A New and Coherent Way to Manage Work in Projects

O A R

6

Change the observer

© 2011 Lean Construction Institute


August 3, 2011


Escalator woes

7© 2011 Lean Construction Institute

© 2010 Lean Construction Institute used with permission of IPD™


What do you see that is more or less the same as traditional practice?

Different from traditional practice?


August 3, 2011



What will it take to design & build this facility?

1,500 Ton Centrifugal Chiller© 2011 Lean Construction Institute used with permission of IPD™

Planning Considerations

• Delay decisions to last responsible moment

U P ll Pl i t C t S h d l• Use Pull Planning to Create Schedules

• Reliability of work flow

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



August 3, 2011


Site as it existed on Novem




August 3, 2011






August 3, 2011




Contract Date 12/30/03 DD Complete 01/26/04 Demolition Complete 01/07/04 Time lost to DDB 6 weeks Permit Issued 04/14/04 Work Begins on Site 04/16/04 Plant Ready to Go 07/28/04

GMP $6,000,000Final cost with normal markup $5,400,000IPD savings against GMP $600,000



August 3, 2011


Lessons learned from Orlando:

• Where do we innovate?

• At the very beginning—structural design

waits for piping layout because we’re building a pipe

hanger

• As we learn from previous projects—we over

excavate the site, counter‐intuitively

• We learn about tolerances and eliminate

contingency

• We learn about site mobility and eliminate stub ups


A New and Coherent Way to Manage Work in Projects



August 3, 2011



RESULTS

Worst

40

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

Best


41© 2011 Lean Construction Institute 41


August 3, 2011


The gains are lost & the losses mount up

© 2009 Lean Construction Institute 42 42© 2011 Lean Construction Institute

“Shock Wave”

© 2009 Lean Construction Institute 43

Simulation

Actual Shock Wave

A brief history of project management



August 3, 2011


How do we manage projects now?

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

45

Program Design to Program Price

Redesign to Match

Price



• Break project into activities, estimating duration and resource requirements for each activity and placing them in a logical order with CPM

Demolition

46

Grade & Fill

Foundations



• Assign or contract each activity, give start notice and monitor safety, quality, time and cost standards. Act on negative variance from standards



August 3, 2011



• Coordinate with master schedule and weekly meetings



• Reduce cost by productivity improvement

• Reduce duration by speeding each piece or changing logic



• Improve quality and safety with inspection and enforcement



August 3, 2011


Traditional project management: A coherent common sense

Organization OperatingSystem Commercial

51

Activity Centered(CPM)

Command & Control Transactional


Three Connected Opportunities

Impeccable Coordination

Production System Design

Collective Enterprise


Research Finding from early 1990’s

54 %



August 3, 2011


Project Zeneca Ag Products - Building 196 Run Date: 2/21/00 12:57

Other CommentsContract Design Submittals RFI's Material Prereq Equipment Labor Weather

Demo CMU wall 28-Oct Cal-Wrecking X X X X X Concrete at E-10 must be up to strength.

Excavate footing 4-Nov Cal-Wrecking Possible delay caused by oversized footing.

Install bottom rebar mat 9-Nov McGrath X X X X X X X X X X

Install footing dowels 9-Nov NLB X X X X X X X X X X

Plumbing rough-in 10-Nov Perryman X X X X X X X X X X

Install top rebar mat and stirrups 11-Nov McGrath X X X X X X X X X X

Rebar inspection 12-Nov ICI, C of R X X X X X X X X X X

Place footing 16-Nov NLB X X X X X X X X X X

Install 1st floor wall rebar 19-Nov McGrath X X X X X X X X X X

Above sequence 2-Dec X X X X X X X X X X

Total Activities 27

Activities Ready 25

AMR Week - 1 Ratio 92.59%

InputsCriteria ResourcesID Activity Description Start Responsible

Lookahead Plan With Constraint Analysis

Master & Phase Schedules

54

Weekly Work Planning

Planning System Measurement

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PPC

4 Week Moving Average


The Last Planner® System of Production Control5 - Connected Conversations

Set milestones & strategy Identify long lead items

Specify handoffs Identify operational conflicts

SHOULD

Master Scheduling

Milestones

Phase “Pull” Planning


Make ready & Launch Replanning when needed

Promise

Measure PPC & act on reasons for failure to keep promises

CAN

WILL

DID

Weekly Work Planning

Make Work Ready Planning

Learning

From this . . .



August 3, 2011




Pulling Planning


August 3, 2011


Project and Production Controls


A new operating systemfor a new coherent common sense

Activity CenteredCommand &

Organization

Transactional

OperatingSystem Commercial

(CPM)Control Transactional

Flow Centered(Lean)

Collaborative Relational

© 2009 Lean Construction Institute with permission of Will Lichtig© 2011 Lean Construction Institute







August 3, 2011


Impeccable Coordination & Production System Design


The Dot GameThe Dot Game


Goals for Production System Design

• Match throughput rate to demand rate

• Minimize cycle time

• Reduce WIP to the minimum needed to maintain throughput

88

maintain throughput

• Minimize resources required



August 3, 2011


15 Storey Hotel in 6 days

Amazing

89

Comments from the Peanut Gallery

90

Production Systems in Construction

• The physical characteristics of production tend to be ignored.

• Variability in production systems is not taken into account.

91

• Production is largely uncontrolled.

• Lack technical knowledge about production; e.g., work flow reliability, defect rates, process and operation designs.



August 3, 2011



• There is no systematic process for learning from experience.

• Extreme fragmentation, even within single companies

92

companies.

• Central control fantasy—push system.


• Central Control Facility is in Toronto


93

Ohno’s 7 Types of Waste

• Engineer Ohno



August 3, 2011



95

1. Defects in products



962. Overproduction of goods not needed



97

3. Inventories of goods awaiting processing or consumption



August 3, 2011



98

4. Unnecessary processing



99

5. Unnecessary movement of people



100

6. Unnecessary transport of goods



August 3, 2011



101

7. Waiting by employees for process equipment to finish work or for an upstream activity to complete.


Additional Wastes in Construction

102

8. Underutilizing human talent


103

9. Information—too much, too little etc


August 3, 2011



104

10. Make do

Key Terms

•Work Flow‐the movement of information and materials through networks of interdependent specialists.

•Release of work ‐making work available to the next specialist.

105

•Dependence ‐ waiting on release of work.

•Variation ‐ the range of work completed each day or week.

•Buffer ‐ a verb: “to isolate one activity from the next.”

•WIP ‐Work in process.© 2011 Lean Construction Institute

Key Terms

•Point Speed ‐ how fast each assignment or activity is completed.

•Throughput ‐ the amount of the project completed each period.

•Capacity ‐ amount of work that can be done b h i li l d d i i

106

by the specialist, related to productivity.

•Push ‐ Advancing work based on central schedule

•Pull ‐ Signaling for components of work to arrive when they will be required.



August 3, 2011


Learning to see

1. Minimize the movement of materials and workers by sequencing and positioning of workstations (layout) and by maintaining materials at the workstations.

2. Release work (materials or information) from k t ti ( i li t) t th t b

107

one workstation (specialist) to the next by pull versus push.

3. Minimize batch sizes to reduce cycle time.

4. Make everyone responsible for product quality.


Learning to see

5. Balance the workload at connected workstations.

6. Encourage and enable specialists to help one another as needed to maintain steady work flow (multi‐skilling).

7. Stop the line rather than release bad product to your

108

p p y‘customer’.

8. Minimize changeover (“setup”) time to allow one piece flow.

9. Make the process transparent so the state of the system can be seen by anyone from anywhere.


What batches are found in construction projects?

• Drawings for review and approval; e.g., Construction Documents, permit sets

• Requests for Information (RFIs)

• Requests from one specialist to another for more

109

q pinformation than is needed at the time:

– ‘I need your design for the chillers’ when what’s actually needed is footprint and weight.

– ‘I need to know all penetrations through load bearing walls’ when what’s actually needed is to identify penetrations > 1 square meter.



August 3, 2011


What batches are found in construction projects?

• The spacing between ‘lessons learned’; end of project, end of phase—long feedback loops

• Spacing between trades

110

• Orders for materials

• ???


Where might we look for ‘pull’ or ‘push’?

How does work product flow through networks of interdependent specialists…

– in design?

i ifi ti f b i ti d d li f

111

– in specification, fabrication and delivery of engineered‐to‐order products?

– in site assembly and commissioning?

How does each work group decide what work to do next?


112


August 3, 2011


Key Features of Lean Production Systems in Projects

• The larger system is the focus of management attention, not local optimization

• Stakeholder interests are aligned through relational contracts

113

• All product life cycle stages are considered in design

• Product and process are designed together; indeed, all design criteria are considered when generating and selecting from design options



• Downstream players are involved in upstream work, and vice‐versa

• Necessity, the mother of invention, is self‐imposed to cause innovation and learning

114

• Variation is attacked and reduced —variation in work load, in process durations, in product quality, in plan reliability, …



• Inventory, capacity, schedule and financial buffers are sized and located to perform their function of absorbing variability that cannot yet be eliminated

• The rule followed for release of work between

115

connected specialists is: Flow where you can, Pull where you can’t, Push where you must

• Activities are performed at the last responsible moment



August 3, 2011




Big Room - Prefabrication



August 3, 2011



Courtesy of DPR, Inc© 2011 Lean Construction Institute

Courtesy of DPR, Inc© 2011 Lean Construction Institute


August 3, 2011


Purposes

Constraints

DesignConcepts

ProcessDesign

ProductDesign

DetailedEngineering

Fabrication& Logistics

Installation

Commissioning

Operations & Maintenance

Alteration &Alteration &DecommissioningDecommissioning

Lean Project Delivery System

122

Project Definition Lean Design Lean Supply Lean Assembly Use

Production ControlWork Structuring

LearningLoops








August 3, 2011


OperatingSystem

Collaborate;Really Collaborate

Networks ofCommitment

Tightly CoupleLearning w/ Action

OptimizeThe Whole

IncreaseRelatedness

© 2011 Lean Construction Institute used with permission of Will Lichtig

Why? What? How?


OperatingSystem

Why?What?What?

How?© 2011 Lean Construction Institute used with permission of Will Lichtig


August 3, 2011


Architect

Civil

Structural

Mechanical

CM/GC

Site

Steel

Mechanical

Owner

Geotech

Food Service

TrafficMechanical

Electrical

Plumbing

Landscape

Elevators

Interior

Parking

Mechanical

Electrical

Plumbing

LandscapeFraming

Floor CoverPainting

Materials

Food Service

Medical Equip

Pharmacy

Admin

Operations

Diagnostics


OperatingSystem

Owner

Core Group

Civil Framing

Landscape

OtherOther

Integrated Project Delivery TeamDiagnostics

Imaging

Stakeholder

CM/GC’s PMArchitect’s PM

Owner Rep

Structural

Mechanical

Electrical

Plumbing

Site

Steel

Mechanical

Electrical

Plumbing

Framing

Landscape

Material Mgt

Plant Operations

Admin

Food Service


Co

mm

Un

dersta

Pre-Construction Services

Architect Hired

≤100%

Construction

Traditional Level of Common Understanding

Owner

mo

nan

din

g

CM/GC Hired

Major Trades Hired

Engineers Hired

SD DD CD

Time



August 3, 2011


OperatingSystem

Co

Un

de

Construction

A hit t Hi d

100%

Pre-Construction Services

Owner

Time

om

mo

nrstan

din

g

CM/GC Hired

Concept Design Implementation

Architect Hired

Engineers Hired

Major Trades Hired

Valid.


Desirability

OperatingSystem

Viability Feasibility

Change by Design© 2010 Lean Construction Institute used with permission of Will Lichtig

OperatingSystem

Programming Decisions:What’s

© 2011 Lean Construction Institute used with permission of Dick Bayer

What’s Desirable?


August 3, 2011


OperatingSystem

Programming Decisions:What’s


What’s Feasible?

OperatingSystem

Programming Decisions:What’s Viable?


What’s Viable?TargetValue Design

Levels of TVD

Detailing

Production Plan

Concept Design Implementation

ConstructionPre-Construction ServicesValid.

Planning & Programming

Design

Detailing



August 3, 2011


OperatingSystem

Create Analyze Converge Decide


Define Problem

Brainstorm Cull O ti Research Evaluate

Ideas Options Research Evaluate

Choose


OperatingSystem

M/E/P

Structure

Building Envelope

Cluster Leaders

Landscape

Material Handling

Vertical Transp.

Site Improvements

Interior/ Finishes



August 3, 2011


Design - System Selection

• Steel Structure• Previous (2005) ~ 27psf

• Validation ~ 22psf

• Current Design ~ 18psf

• Viscous Wall Damper• Ultimate Reduction in

Damping Budget of $9M

• Domestic versus Import Steel

Details - Parts and Pieces

• Attachment Bolts per VWD• Previous 102 ~ 1-9/16 bolts

• Current 36 ~ 1-9/16

66 ~ 1-3/16

• Savings 2 man-day eachg y

•Fewer Hangers•Fewer Seismic Restraints

Details - Parts & Pieces

Restraints•Fewer Deck Inserts•Error-proofs layout•Multi-Trade Prefabrication


August 3, 2011


Multi-Trade Prefab

“Buildings Leak at the Intersection of Contracts”

Roofing

Wi d

CaulkingWall stud

Waterproofing

Structural steel

Window

Masonry

Concrete

Excavation

Foundation

Todd Zabelle© 2010 Lean Construction Institute

OperatingSystem



August 3, 2011


OperatingSystem

CM/GC

Architect

Mechanical

Electrical

EngineeringDrywall

Glazing

Mechanical

Steel Conc. Civil

Profit

Contingency


Basic Commercial Model

ExpectedCost

EstimatedMaximum

Price

TargetCost

ActualCost +FixedFees

DESIGN CONSTRUCT


Management of Risk

Losses or Cost Overruns

Negligence

(Insurance $$)

orOwner


Owner $$(IPD Cont.)

IPD $$(Profit Pool)


August 3, 2011


Sharing Project’s Innovation and Success

Production

Savings $$

Validated Expected Cost

Actual CostDesign

Incentive Pool =

Metrics

Owner =

Contingency

Production


Lean Construction Observations



August 3, 2011


Observations

• Project work is affected by dependence and variation

• Project work is coordinated in words

• Work flow reliability is not addressed by current planning and control systems

• Excluding the “makers” from participating in design results in higher cost, lower quality, and diminished safety

• Safety is more a system design problem, than an individual behavior, motivation and and control systems

• Decomposition model has led to sub‐optimization

• Project complexity outstrips individual competence

• Traditions of craft and contract constrain how work is conceived, designed, fabricated & installed

,training problem

• Projects are temp social orgs.

• People are intrinsically motivated

• People respond to external feedback

System Design Principles

• Increase Relatedness

• Collaborate, Really Collaborate

• Projects are Networks of Commitments

• Optimize the Whole, not the Piece

• Tightly Couple Learning with Action

Actions to Take

• Implement the Last Planner System

• Organize and manage the project as a Collective Enterprise

• Use Target Value Design from concept to completion to focus on value

• Adopt a commercial structure that supports the organization and operating system

• Institutionalize Rapid Learning as part of the project culture


August 3, 2011



• Impeccable Coordination

• Production System Design• Production System Design

• Collective Enterprise

Anticipated Results

• Higher Value to Owner (better fit between need/want & solution)

• Lower cost per unit of value

f l h l• Greater financial return on human capital

• Improved safety

• Improved quality (defect free production)

• Greater human satisfaction


August 3, 2011


Strategyfor

LeanDeliveryA

B

Paths to ImplementationPaths to Implementation

158

Person(Company)

OperatingSystems

Control

Focus of Attention

Success

CurrentPractice

C

B


Will You Be Ready?

Operating System

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