The application of Lean in the building of Timber …...Lean Construction Ireland leads a community...

deliver projects better, faster, together

The application of Lean in the building of Timber Frame Structures.

IJM Timber Engineering Limited

Mr. Peter Mc Caughey, Managing Director Mr. James Mc Nabb, Director Team BDS & Board Member IJM.


Presentation Overview

• Industry Background

• Our Process

• Getting the relationship right with all stakeholders – Get Lean right

• Lean projects – “focused on the delivery and construction element”

• Planning and scheduling for the delivery and building of units on time.

• Ensuring a smooth build process

• Ensuring full compliance with H&S and quality standards

• Dealing with issues and challenges immediately

• Comparing the “before” and “after” state, essentially showing the KPI improvements.

• The people aspects of this process.


History

• Timber frame Ireland

– 90’s >1%

– Currently 25%

– Increasing 35-40%

• Regulations driving Thermal Performance

• Labour market driving

– Off-site construction

– Lack of on-site skills

• 1/3 of IJM Resources are On-site

• Established 1965 as Irish Joinery Monaghan

• Promoted to Timber Frame from 1965

– Manufacturing to inc. external joinery internal joinery, kitchens, stairs

• Kitchens – Discontinued 1990

• External Joinery – Discontinued 2001

• Internal Joinery – Discontinued 2008

• On-Site Erecting – 100% since 2012

Industry background

Now focused and Lean


IJM Head Office Monaghan


Student Accommodation & Apartments


Residential Development


Duplex Units & Terrace Houses


Mixed Development


Time

€ Sales

Resources/Costs

Profitable Growth

Why should IJM embark on such a journey.Why Lean Thinking? What are the Aspired Benefits?


Understanding our customer characteristics sets the beat for IJM.“We listen to the voice of the customer”

• Solve my problem completely

• Don’t waste my time

• Provide exactly what I want

• Deliver value where I want it

• Supply value when I want it

• Reduce the number of decisions I must make to solve my problems


IJM Lean Management Thinking

Specify Value

Map the value stream

Create flow & pull

Involve & Empower

Continuous Improvement

Answer the question of purpose

What do our customers want and what do we need?

Map your process & eliminate waste

Make value flow at the pull of your customers

JIT & not mass production to stock

Involve everyone train them how to solve their

problems

A continuous CI cycle

Apply the Lean Tool Box

A profitable Business


Lean BPI

Working Smarter Not Harder

More + More

Less

Less Less Waste

More Value


Focusing On WasteUnexploited Innovation

Transportation

Stock

Waiting

Over-production

Motion

Processing

Defects

Failing to use people’s abilities

Moving from A to B and back.Excess routes

Keeping any more than needed to do the job.Ordering the wrong materials

Waiting for materials, Drawings, designs

Producing the wrong product, rework.

Wrong information, Wrong drawings, Faulty product due to info.

Rework drawings, wrong specifications, scrap, quality, handling damage

Excessive motion needed to do task, excess site meetings, collecting reports.


IJM Process

Quotation Order Arch. PlansApproval to

Manufacture

Eng. Drgs –

Walls, Floors, Roof

Manufacture DeliveryErect On-Site

Part A, B & C

Handover

Ancillary Certification

Tender ReviewContract Review

Sales Order | Review Design Review | Engineering Review

Value EngineeringStructural

Calcs.Fully managed Programme


Build Time Start/ Finish Target

Scheduled Deliveries

Planned Production

Planned Procurement

EngineeringDesign Freeze

Voice Of The Customer - “Managed Programme”Procurement

Deliveries

4 week period


Manufacturing lean initiatives

Planning

Productivity

OTIF

Quality

Costs

ERP

H&S

Overhead & Engineering lean initiatives

Planning

Engineering

Accounting

ERP

Org structure

Scheduling, delivery & construction lean initiatives

Planning

Scheduling

Transportation

Construction process

ERP

H&S

Quality

The lean business initiatives

Focus for webinar


Partnership Model In Place For Operations ExcellenceIJM Team/On-site Partners

Was

Lacked a flow of projects

Lack of clarity

Lack of full planning

Subcontractor model

Now

Planned workflow

Transparent pricing

IJM Team approach

Partnership model

Customers

Was

Price driven

Erratic planning/vision of flow

Blame culture

Now

Value & service drive

Coordinated planning

Solutions and team culture

Suppliers

Was

Us and them

Hard nosed negotiations

Playing suppliers off

Confrontation

Now

Team models

Transparent pricing

Guaranteed supplies

Open book planning

“Win – Win for all”


Before 2015

No real consolidated vision -

At the behest of the customers lack of planning

Reacting to constant change

Crippled with spreadsheets

Capacity loading inconsistent – lack of ability to plan

Current state

Fixed agreed plan with customers

Firm visibility on capacity in people hours/equipment/capability (internal & external)

Change management process –“Programme” agreement.

New Enterprise Resource management system installed

Clarity on capacity levels at all points in the supply chain

Future

Extend to UK customers

Increase capacity through continuous improvement.Providing more “off site” construction solutions e.g service areas within floors

With our strategic customers, through education/training help them createbetter programs from the outset.

Full end to end integrated system. (suppliers, customers, IJM resources)

Forecasting models for suppliers, but linked to customer demand.

Planning & Scheduling for the Delivery & Building of Units On Time


Ensuring Full Compliance with H&S & Quality Standards

Before 2015

Certified QMS – but paper based, H&S process was not clear enough

Quality was responded to but somewhat “covering ones corner”

Inflexible in nature

Not enough of internal customer focus

Not enough of external customer focus

Wasn’t adding value

Current stateNew Certified ISO 2015 system in place covering all legal and optimum standards for quality. Health and safety CI in place

Ethos of continuous improvement embedded.

The company internally Audits the standards, but Quality and safety at source is the main feature.“Quality & Safety deployment”

Internal customer groups established, sales, engineering, manufacturing and building.

Ensure that Quality is maintained and continuous improvement is implemented.

Value rising each month, Cost of Quality/H&S decreasing

Future Maintain this, continuously improve and work towards a paperless environment.

Continue

Reduce cost of quality (poor quality)Reduce cost of H&S by investing at source.

Continue and further empower employees to deal with issues

Drive KPI’s and monitor / review internal audits. Get quality down to source.

Aspiring towards “near Zero”defects & incidents.


Reduce H&S issues &

comply with all building regulations

Reduce complexity

Reduce costs

Reduce overall COQ

ISO 9001:2015IS440,

EN14250, EN1090

PEFC Chain of Custody

Environmental Mgt. System

Ensuring full compliance with industry standards – an integrated approach.


Teamwork

Key Performance

measures keep us focused

Feedback/ complaints rated and root cause

pursued

Issues responded to immediately

Problems are exposed, not

hidden

Blame culture discouraged

IJM QMS, all actions are managed

Communication is highly rated

Dealing with Issues & Challenges Immediately(Culture)


Comparing the “Before” and “After”While Growing Rapidly As Well.

Key Measureable Pre 2015 Current State

Lead time (design freeze to build) 6-7 weeks 4 weeks

Inventory Turn 8 14

Inventory Accuracy 95% 99.5%

Within “internal budget” planned cost 89% 98%

Construction compliance 100% 100%

Health & Safety (incidents) -12%

On time in full delivery 92% 98%

Output per employee + 28%

Overhead cost reduction - 29%

Capacity + 200% and extra staff


Training & Development

Lean at all levels – Black belt / green belt / Introductory.

Management andteam Training

Leadership training

ERP Training

Business Process Training

Communication

Clear meeting schedule

Clear communication process

Transparency

Win – Win

Measureable projects

Clear projects

Clear targets

Clear measures

Lean Roll Out & Training

“Keep it simple”

“Common sense prevails”


Daily Tools to assist

Cross Functional Team RepresentativesProduction, Quality, H&S at shop floor level

Boards KPIs

Weekly

Operations Meetings with Business Unit Managers.Operations Planning Meetings

KPIsAction itemsPlans & VariancesMonthly

Management Team Meetings KPIs / Dashboard / Initiative Summaries

Quarterly

Department Team Meetings Objectives / Initiatives Templates

Business Unit manager / Face-to-face Meetings

Management Communication to many

Dashboard KPIs Initiative Templates

Comms Meeting Dashboard / KPIs / Initiative Templates

Annual (Senior Management team)

Strategic Planning Meetings

Annual Performance Review Meeting

Annual Company Objectives / Targets

2 Years

Daily Boards, at shop floor level

Cross-functional Improvement

Teams

Engagement & Communications Cycle


Our Future !

Our Strategy is firm!

We have an excellent Customer base with strong relationships

We have a range of new Products emerging

We see major international Growth

We need additional new and energetic Resources


Thank you for listening.

Questions & Answers.

www.ijmtimberframe.com

www.ijmtimberframe.com


Overview of Lean Construction Ireland


WHO WE ARE…Lean Construction Ireland is an all-island, independent, and not-for-profit association whose members passionately believe that Lean Thinking & Practices can enable and sustain enhanced effectiveness, efficiency, productivity, and profitability for the Irish Construction Sector, Clients, and Supply Chain.

WHAT WE DO…Lean Construction Ireland leads a community of learning and practice that promotes the application of Lean Thinking & Practices throughout the Irish Architecture, Engineering, Construction (AEC) sector so as to realise value-add for all stakeholders in the value chain. It supports the open exchange of knowledge, information, and experiences around good practices and case studies. It also supports ongoing research into Lean practices nationally and globally, their application to AEC, and their sharing with the wider Lean Construction Ireland Community. It is aligned to LCI USA.

CORE VALUES…Collaboration. Leadership. Teamwork. Commitment. Knowledge. Innovation. Integrity.

VISION…Deliver Projects Better, Faster, Together

STAKEHOLDERS… Public & Private Capital Project Clients & Owners. AEC Supply Chain. AEC Representative Bodies & Agencies. AEC Professional Bodies. AEC Academics. Lean Construction Trainers & Consultants. Lean Business Ireland. Ireland Inc.

OBJECTIVES…To achieve this Vision Lean Construction Ireland will: Promote the application of Lean Thinking & Practices in the Irish AEC sector. Develop a national network of members committed to the application of Lean

Thinking & Practices. Challenge the status quo of current project thinking and delivery methods. Advance amongst all stakeholders the business case for Lean Construction

knowledge and skills.

About LCI


Contact LCI

www.leanconstructionireland.ie

www.linkedin.com/groups/4332330

www.facebook.com/leanconstructionireland

twitter.com/lci_ireland

[email protected]

The application of Lean in the building of Timber …...Lean Construction Ireland leads a community...

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