Goldratt Consulting Regional DirectorJapan TOC Advancement committee Director
Yuji Kishira
Win-Win-Win Public Works
Japanese Public Construction Current Status
Government spending cut by half
Over 500,000 construction companies
Small and medium-sized local construction companies
A series of large scale disasters are still fresh in our memory and the importance of public works
is being actively discussed widely
Transition of construction investment
0
10
20
30
40
50
60
70
80
90
51 52 53 54 55 56 57 58 59 60 61 62 63 元 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
民間投資額(兆円)
政府投資額(兆円)
(one trillion yen)
(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 -
Huddle Waste ofTax
ManyScandal
Continuing natural disasters
Ratio of amount of natural disaster damage
Japan: 15%
USA: 22%
Germany: 2%
Britain: 1%France: 2%
The other : 58%
(1970 - 2004)
Japan - Only 0.25% of geographic area of the world accounting for 15% of the amount of the world of the natural disaster damage
(1985-1994)M4 or more and 100km in depth Asa of hypocenter
Earthquake distribution chart of the world
From the Ministry of Land, Infrastructure and Transport material
Expensive construction cost on severe country condition
- Japan is an earthquake large country, and the measures cost is necessary.
Pier of Hanshin ExpresswayCharles de Gaulle AirportPier 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
ConflictUndesirable Effect(UDE)
UDE of public works contractors・ Huge deficit・ Budget cut of public works・ Bashing that continues every day・ Local contractors bankruptcy due to a dramatic decrease of public works investment
Taxpayer's UDE・Waste of tax-Huge deficit・ Huddle and many scandals・ Large-scale natural disaster ・ Can’t see what they do
Outside of the project
Project Team Members
Not enough budget/resource
Not enough time
Slow decision by customer or management
Information not shared timely
Suppliers’delivery delay
Change requestall the times
Can’t get supportfrom other people
Can’t get management
support
Working Very Hard!
Four elements of critical chain
1.ODSC “SURIAWASE”
2. Backward scheduling “DANDORI HACHIBU”
3.ABP(Aggressive But Possible) “YUTORI”
4.Buffer Management “SENTE KANRI”
CCPM reminds us Japanese shop floor best practicesLOGICALLY
→Consensus making to have shared goals
→Preparation is 80% of the success of the project
→Educate people while providing concentration
→Take action before too late
Critical Chain Project Management
human problematic behaviors are:
- Parkinson’s Law (use all the time and budget given)- Murphy (anticipate unexpected problems and estimate longer schedules for tasks)- Student Syndrome (start slowly and work overnight before the due date)- Unreported Early Finishes (finish early but use all the time for elaboration)- Multi-tasking (give top priority to all tasks and start them earlier)
It is PEOPLE who run task!
Questions
1. Need to pick up your friend at the station at 10AM. When you leave here?
2. Need to pick up Very Important Person at the station at 10AM. When you leave here?
Difference, Why?
I need Safety!
Safety bugs loves RESPONSIBILITY.
When Safety in the task is remove
12
86
8
10
6
6
6
23
4
7
1.5
1.5
4
38
3
Experience and know-how Hands
on transfer to young engineers
More motivation to deeply think to
finish on time
The person in the next task anxiously waiting to
start on-time
The boss protect the site with the buffer.
The chain of challenging spirit.
Source of theTeam work
Report problem before too late
Project Buffer=
OYAKATA Buffer
BUFFER MANAGEMENT
Looks like exactly what
excellent OYAKATA
DOES!
The buffer management takes a measure before it becomes too late. Tool of “Prevention management"
先手管理: SENTE KANRI
ODSCObjectives
Deliverables
Success Criteria
Build bridge
Build bridge
Build bridge
The mechanism exist to confuse the means with the objectives
すり合わせ: SURIAWASE
Backward PlanningIt is a usual and natural idea.
TargetTaskTaskTask
Success senario
The necessary condition logic
To take the 10 o'clock train
段取り八部: Dandori Hachibu
First Critical Chain Implementation
Young foreman
ODSC: Objective, Deliverable, Success Criteria
Objective -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 local residents-Make high profit (Pay tax)
Deliverable -Super reinforced bank
Success Criteria
-Complete by the end of July-Quality rating > 85-Profit >16%-Zero accident
Test Run Project Results30% Reduction project duration
Sharing Know-how with young foreman
Foremen participation to Managment
Collaboration acceleration with subcontractors
3month Early Cash Flow
“Endo certainly made great profits in this test project, but far more important is his growth. Endo definitely Changed. He became a really dependable foreman. The Tonebetsu River project is already project in the pastwhich achieved a great result. For Endo, the real challenge is to see achievement in the next project given. (I believe he will make it.) The best outcome of the Tonebetsu River project is thatEndo became one of our best foreman, which is aided by CCPM.We can expect more profits from Endo’s projects now and in the future, which is far more important of this single project success. That is because Endo has overcome a barrier. It’s really amazing.”
Can we help RED project?
I will finish my project early and help RED project.
We will also help it!
We will offer our resource toHelp RED project
Each project manager starts to care the other projects with management view!
思いやり: Help each other
Shared Safety means
It is late because of me ・・・ .
Source of teamwork
Multi-tasking prevented and allowing concentration on one task
The buffer management is a tool for Sente Kanri
Mutual trust to show of bellies each other
Situation of present public works(public office side)
Construction economy report No.46 Quotation from P104 in April, 2006
Research Institute of Construction and EconomyCurrent Reality Tree structural tree
One Day Response Project!
Information does not transfer to contractors
timely manner
Resource shortageOr Excess resource
Sudden works required
Slow finalization of Spec
Cost increase
Synchronization information
DAI MONDAI !
Contractors can be chosenby quality history, proposals
and cost
Contractor canMake quicker
decision
Public works finishearlier
ImplementOne Day Response
Project
Contractors haveeffective informationduring constructions
Contractor managementunderstand status
Contractors canchoose the bit
Contractors gethigher quality
record
Have moreadvantage in thegovernment bit
Contractor canMake a effective
proposals
Governmentsupervisors get moreflexible for change
Public works wiillprovide good quality infractruture while
supporting government financialdifficulty turnaround
Contractors makeprofit
Tax incomeincrease
Enhance competancyof government
supervisors
Realize economiceffect ealier
Governmentsupervisors aremore motivated
Make Tax payers/residenthappy
Contractors arehappy
Quality of publicwork law
implementation
Win Win
Win
One Day Response project
Critical chain project network of One Day Response project
Move construction fasterShorten lead time for construction worksEliminate idle time during constructionContractors make profitsBuffer safety makes safer and high quality worksCommunication enhancementGood for environment and local residentRealize economic effect earlierHuman resource development
One Day Response project test constructionContractor Public Office
・ Easy to guide because it consults ahead of time. ・ The overtime work decreases. ・ The royal road of OJT. ・ Officer's role in public works reminded・ Human resource development
・ Construction finish earlier・ Teamwork with contractors/officers ・ Residents are very pleased・ Quality enhancement. ・ See the brightness in the constructionBusiness in the future
Resident
・ Experess our gratitude for construction's ending early. ・ An inconvenience under construction finish early. ・ It becomes convenient.・ Good teamwork of contractors/offices makes image drasticImage change of public works ・ The load to natural environment is surely reduced, too.
The works without safety
constructs mutual trust.
Quick response Educate people
quickly
Quick actioncreates trust
Construction is uncertain.
Without SafetyIt is not
competent.
Learn by experience of
their own
A bureaucracyIs always slow
Win
Win Win
Unexpected synergy effect
Public Office
One Day Response
Project
Contractor
TOC Critical chainTrust
Return to the origin of public worksSharing buffer : the source of team work.
Communication & Collaboration
Command & Control
Simple
Complex
Communication
Control
Superficial report
Kishira's 3C Management Positioning Map
Do it Forced to do it
Head QTR control project
Job descriptionMake
manuals and rules
Distrust
Rigmarole
Fulfillment Commitment
Project manager manage project
Make profit with
teamwork
Trust
Human Focus
Report simple remaining date
Management by developing
manual people
Management by developing
human resource
Big change in management focus
ODSC
Buffer
Individual progress
SafetyManagement
YUTORI
One Day Response Level
CC
PM
Level 9%
Profit Increase
4%
Profit increase
28% delay
10%
Profit increase
5 pilots project result in Kochi Prefecture5 pilots project result in Kochi Prefecture
Low
High
High
2% Profit decrease (due to big change of material)
But it duration is 50% reduction
-Duration 20% reduced in average while 28% delay in non-CCPM site-Profit 7 % up average-Average quality point : 80 (where general average is 73)
LowSource: Kochi Prefecture
Construction quality enhancement By CCPM in Kochi Prefecture
72
73
74
75
7677
78
79
80
81
82
H18全工事 H19全工事 H18ワ ンテ ゙ー H19ワ ンテ ゙ー 礒部組
Standard CCPM
Declaration of Win-Win-Win Public Work ReformMay 8 2007
We strongly remind ourselves of our very important responsibility of public works to secure people’s safety and national land safety. To bring out maximum benefit for society, both government officials and contractors work together on public works by providing better products with faster speed. This brings benefits to all of residence, government and contractors and support to overcome financial difficulty of Japan Government. We declare herewith we strongly advance Win-Win-Win Public Work Reform.
One Day Response Update snap shot in Japan
FY2005 1 pilot runFY2006 15 MLIT Hokkaido Pilot runsFY2007 2523 MLIT across JapanFY2008 >4000 FY2009 >12000 all MLIT public construction
Many positive feedbacks to request to expand more from contractorsAround half of 47 prefectures started pilot runsSome of major cities throughout Japan started implements
TroublesTroublesClaimsClaims
BudgetBudget CutCut
NaturalNaturalDisastersDisasters
Political Political ScandalsScandals
Too much work chasing at us!
Can not live anymore in this
situation!
But what we can do? Sick employees
De-motivated
2006 Miyazaki Prefecture
Aug Nikkei Construction Kyoto Prefecture ArticleSept Construction Management Meeting in Kyushu
CCPM Seminar by Yuji Kishira Nomination of pilot project
Nov 1 Started the projectNov 16 Scandal
Kataino River Bank Emergency Flood Protection One Day Response Meeting 2006 Dec 08 (When Governor, general manager, managers arrested) Joint meeting contractor and Government official Let’s fight with time together!
Critical Chain saves 30,000 people livesIn Miyazaki prefecture
Over 120 executives learn TOC every year as official training
MLIT University Ministry Land, Infrastructure, transportation and Tourism
Dr. Eli Goldratt comment
Toyota changed plants worldwide and in the future, it will be said that MLIT changed all government management. You should recognize such huge impact to the world
Mr. Andres Uriel GallegoMinster of infrastructure
Ms. Carolina RenteriaDirector general Economy planning
Visited Colombia Government in 2008
Top page of project management magazine
2009 Aug Brazil
Key note in conference
WA book published
2009 Korea
Workshop of Win-Win-Win public work in Fukushima 2010 Dec
ODSC in Gemba (construction site)
週間作業予定表
ODSC Finish picture
Very good objective for us!
Voices from local residents
福島県の発表資料より引用
Evaluation of Proof of Concept
completed Reduced
Disaster Mega EarthquakeDisaster Mega EarthquakeMar 11 , 2011Mar 11 , 2011
Ichiban !
Ni ban !
Focus! Objectives! Shared in Gemba!
Message from Fukushima government officers
We will rebuild beautiful Fukushima!
Decreasing ・ High Pressure ・ Negative discussion・Waste of time and money・Worry/Stress・ Accidents・ Complex document and report・ Conflict・ Silo decision・ Big enterprise disease・Worry about resource development・ Irritation・ Complex discussion- Errors/Re-work・ Overtime work
Increasing ・ Flexibility・ Positive discussion・ Focus・ Safety・ Custom of thinking deeply・ Helping each other and empathy・ Smiling faces – happy employees・ Holistic decision・ Team work across organizations・Wonderful personnel growth・ Fulfillment・ Profit- Quality・ Time with family-Quality of Life
Decreasing and Increasing By CCPM
Project environment
Uncertainty !Risk!
Safety BugPerkinson’s law BugStudent Bug
Copy Right Mayuko Kishira
Polishing Finish BugMultitusking Bug
Spirit of “WA”
和Respect harmony .The first charter of Japan first constitutionAD604 (Shotokutaishi)
Win-Win-WinGood for customers, Us and Public(Omi business principle )
Three Japanese Words to Know about Project
MONDAI NAI!No Problem!
Dandori HachibuPreparation is 80% of your project sucess
WAHarmony, Peaceful, Japanese
Win-Win-Win Public Reform SymbolNow Everywhere In Japan
This is just a beginning to make a our world little better
DOMO ARIGATO GOZAIMASU!
Special thanks to Dr. Goldratt to warm appreciation and Credit to my work
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