Dick Bayer

May 16, 2011

LEAN CONSTRUCTION PRINCIPLES

BACKGROUND
Try partnering to influence how we do work on the project Use the contract to influence how we do work on the project

BACKGROUND

Change the operating system Change the observer

HOW DO WE MANAGE PROJECTS NOW?

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

Program

Design to Program

Price

Redesign to Match Price

2011 Lean Construction Institute

HOW DO WE MANAGE PROJECTS NOW?

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

Demolition Grade & Fill Foundations

2011 Lean Construction Institute

HOW DO WE MANAGE PROJECTS NOW?

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

2011 Lean Construction Institute

HOW DO WE MANAGE PROJECTS NOW?

Coordinate with master schedule and weekly meetings

2011 Lean Construction Institute

HOW DO WE MANAGE PROJECTS NOW?

Reduce cost by productivity improvement Reduce duration by speeding each piece or changing logic

2011 Lean Construction Institute

HOW DO WE MANAGE PROJECTS NOW?

Improve quality and safety with inspection and enforcement

2011 Lean Construction Institute

TRADITIONAL PROJECT MANAGEMENT: A COHERENT COMMON SENSE

Organization Operating System Commercial

Command & Control

Activity Centered (CPM)

Transactional

2011 Lean Construction Institute

LEAN PROJECT MANAGEMENT: A MORE COHERENT COMMON SENSE

Organization Operating System Commercial

Collaborative

Flow Centered

Relational

2011 Lean Construction Institute

LEAN TECHNIQUES AND PROCESSES Three opportunities of lean construction and design: Impeccable coordination The project as a production system The project as collective

enterprise

LEAN TECHNIQUES AND PROCESSES

Impeccable coordination

Understanding the work Collaborative planning Reliable promising

LEAN TECHNIQUES AND PROCESSES

Understanding the Work: Traditional Process
100%

Pre-Construction Services
Common Understanding Owner Architect Hired Engineers Hired CM/GC Hired

Construction

Major Trades Hired

SD

DD

CD

LEAN TECHNIQUES AND PROCESSES

Understanding the Work: Lean Project
100% Pre-Construction Services Common Understanding Construction

Owner Architect Hired CM/GC Hired Engineers Hired

Major Trades Hired

Valid. Concept Design
Implementatio n Time

LEAN TECHNIQUES AND PROCESSES

PARADE OF TRADES: ASSUMPTIONS

1.

The project is complete when 35 units have been processed by each of seven trades in sequence.

2.

The trades come onto the project a week apart. Work is completed and available to the next trade once a week.
The trades work in sequence, with each following trade able to work only on what was produced in the previous week by the prior trade. Work is done by rolling a die (singular of dice) and passing the number of units rolledup to the number of units the trade has to work on. The number rolled represents the amount of work accomplished each week by the crew. On average each crew is able to produce one unit of work in the week.
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3.

4.

5.

2009 Lean Construction Institute

PARADE OF TRADES
Move 35 units of work through 7 trades. Work is completed at the end of the week and passed to next trade. Place materials on table as shown.
Chips (the units of work) & Score Sheet Die

Concrete

Paint

Mason

Electrical

Facade

Plumber

Carpenter
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PARADE OF TRADES
1. Distribute score sheets as directed 2. Chips on the left of Concrete 3. Establish queue spaces between each trade and cup at end. 4. Give die to Painter 5. FUNDAMENTAL RULE: Chips move right, dice move left

2009 Lean Construction Institute

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PARADE OF TRADES

Mason rolls 2, moves 2, leaving 1 in inventory. Hands the die to Concrete. Records the result.
2011 Lean Construction Institute

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PARADE OF TRADES
Concrete rolls 3 and moves 3 chips. Hands the die to the painter! Records the result.

End of Week 1
Painter says, Beginning week 2 Die passes left all the way around the circle to the Mason.
2011 Lean Construction Institute

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PARADE OF TRADES
Week 2: Mason rolls 2; passes 2, 1 in inventory. Mason records 2, hands die to Concrete.

2011 Lean Construction Institute

Concrete rolls 2, passes 2, records. Hands die to Painter. Painter says, Beginning week 3. 23

PARADE OF TRADES
Week 3: Facade rolls, passes & records. Hands die to Mason. Mason rolls, records and hands die to Concrete. And so it goes.

2011 Lean Construction Institute

PARADE OF TRADES
Mason Facade Chips Concrete 35 Carpenter

Paint Plumber Electrical

Keep passing the die to the left!

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2009 Lean Construction Institute

PARADE OF TRADES
Record the week each Trade finishes. Sum and record the Available Capacity for all Trades. Sum and record the total Remaining Inventory for all Trades except Concrete. Note the highest amount of Inventory in any week for each trade. Call out scores when asked.
2011 Lean Construction Institute

Craft

Total Capacity Week Complete (Sum "Column 1")

Total Inventory (Column 3)

Highest inventory in any week for this trade

Concrete Mason Faade Carpenter Plumber Electrical Paint Sum of Column

Circle Color of Dots on Die

Blue

Black

Red

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PARADE OF TRADES

Scheduling:

Profitability:

How many weeks will it take you to move 35 pieces of work through 7 trade stations?

Whats the number of resources you will use to move 35 pieces of work through 7 trade stations?

2011 Lean Construction Institute

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RESULTS

Worst Average Best

1.1.1.6.6.6

1.2.2.5.5.6

1.2.3.4.5.6

2.2.3.4.5.5

2.3.3.4.4.5

3.3.3.4.4.4

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LEAN TECHNIQUES AND PROCESSES

Collaborative Planning Delay decisions to last responsible moment Use Pull Planning to Create Schedules Reliability of work flow Only do work to release downstream crews (important also in design)

LEAN TECHNIQUES AND PROCESSES

Collaborative Planning

Chilled Water Plant 3-D BIM model, located the equipment on the pad, connected the piping and identified the hangers . . .

LEAN TECHNIQUES AND PROCESSES

Collaborativ e Planning:

. . .then
designed the structure to carry the building components

LEAN TECHNIQUES AND PROCESSES

Collaborative Planning Short loop design iterations using budget as a design criteria

LEAN TECHNIQUES AND PROCESSES

Collaborative Planning: Set Based Design

Create

Analyze

Converge

Decide

LEAN TECHNIQUES AND PROCESSES

Reliable Promising: in Design and Construction Pull planning for design efforts

LEAN TECHNIQUES AND PROCESSES

Reliable Promising: in Design and Construction

LEAN TECHNIQUES AND PROCESSES

Reliable Promising: in Design and Construction

IMPECCABLE COORDINATION & PRODUCTION SYSTEM DESIGN

2011 Lean Construction Institute

Begin with blank card Goal is to produce a card that looks like this . . .

2011 Lean Construction Institute

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Station 1 performs any necessary layout for installation

2011 Lean Construction Institute

Station 2 is responsible for assuring batch size

Batches of 5 must be punched and secured with a paper clip

2011 Lean Construction Institute

Station 3 is responsible for installing the green dot

2011 Lean Construction Institute

Station 4 is responsible for installing 3 red dots

2011 Lean Construction Institute

Station 5 is responsible for installing the yellow dot

2011 Lean Construction Institute

Station 6 is responsible for installing star on yellow dot

2011 Lean Construction Institute

PHASE 1 LOGISTICS
Workstations in work flow sequence Materials located at workstation Workstations 2-7 have an incoming queue space Completed Batches of 5 placed in queue space of next station Batches remain together until final inspection

2011 Lean Construction Institute

PHASE 1 POLICIES

Workers perform only their assigned tasks - NO THINKING Maintain Batch integrity - BUILD IT IF YOU CAN and PASS IT ON IF YOU CANT. QC Problems only detected by Inspector - NO FEEDBACK - NO TALKING All QC problems set aside by inspector as rework TURN UPSIDE DOWN QC Inspector announces first good product. Assemblers are paid by the piece, period.

2011 Lean Construction Institute

PERFORMANCE METRICS
Production: the number of good cards produced in each 6 minute phase. Time: the time it takes the first good card to get through the system. Rework: the number of cards set aside to indicate defects in configuration or fit. Work-in-Progress Inventory (WIP): the number of subassemblies on the table at the end of the 6 minute phase.

2011 Lean Construction Institute

YOUR HYPOTHESES
How many good cards will your team produce in Phase I? How long will it take for you to produce the first good card? How much rework will you generate (cards set aside)? How much WIP will you generate (subassemblies left on the table)?

2011 Lean Construction Institute

HOW COULD THIS SYSTEM BE REDESIGNED FOR BETTER PERFORMANCE?

2011 Lean Construction Institute

PHASE 2 LOGISTICS

Workers may have only one assembly at their workstation Only 1 assembly allowed in queue space between stations (Batch size of 1) Assembly can only be placed in queue when it is empty (pull mechanism). Workstations in Work Flow Sequence Materials located at station Stations 2-7 have an incoming queue space

2011 Lean Construction Institute

PHASE 2 POLICIES

QC Problems may be verbalized by any worker SOME THINKING and TALKING ALLOWED All QC problems set aside as rework at station discovered. TURN UPSIDE DOWN Everyone is paid hourly wages plus a bonus for team performance. Workers perform only their assigned tasks Workers cannot fix QC problems from upstream Inspector announces first good card.

2011 Lean Construction Institute

PHASE 3 LOGISTICS

Workload may be re-sequenced and/or rebalanced by the team Workers may have only one assembly at their workstation Only 1 assembly allowed in queue space between stations (Batch size of 1) Components can only be placed in queue when it is empty (pull mechanism). Workstations in Work Flow Sequence Materials located at station Stations 2-7 have an incoming queue space

2011 Lean Construction Institute

PHASE 3 POLICIES

Workers perform ANY step in the production process. QC problems can be fixed by any worker Fix it when you find it. No restrictions on talking. Everyone is paid hourly wages plus a bonus for team performance. Inspector announces first good card.

2011 Lean Construction Institute

YOUR HYPOTHESES
How many good cards will your team produce in Phase III? How long will it take for you to produce the first good card? How much rework will you generate (cards turned upside down)? How much WIP will you generate (subassemblies left on the table)?

2011 Lean Construction Institute

THE DOT GAME

1.
2.

What are the key points or lessons for you? How might these apply to designing and building? How could you use what you have learned on your project?

2011 Lean Construction Institute

GOALS FOR PRODUCTION SYSTEM DESIGN

Match throughput rate to demand rate

Minimize cycle time

Reduce WIP to the minimum needed to maintain throughput Minimize resources required

2011 Lean Construction Institute

LEAN TECHNIQUES AND PROCESSES

Reliable Promising: in Design and Const.
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 33308 33316 33323 33330 33337 33344 33351 33378 33385 33393 33406 33427 33432 33439 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
PPC
4 Week Moving Average

Planning System Measurement

LEAN TECHNIQUES AND PROCESSES

Production System Design

LEAN TECHNIQUES AND PROCESSES

Production System Design: Target Value Design Pull planning Built in Quality Plan Safety Plan First Run Studies Metrics

LEAN TECHNIQUES AND PROCESSES

Collective Enterprise: Maximize the whole, not the pieces

LEAN TECHNIQUES AND PROCESSES

Collective Enterprise: Maximize the whole, not the pieces
Glazing Engineering
Architect CM/GC Drywall Electrical Mechanical

Steel

Conc.

Civil

Profit Contingency

BUILDINGS LEAK AT THE

INTERSECTION OF CONTRACTS
Todd Zabelle

Roofing Wall stud Caulking

Window Masonry Waterproofing Concrete Structural steel Foundation Excavation
2010 Lean Construction Institute

KEY LEARNINGS
The larger system is the focus of management attention, not local optimization Stakeholder interests are aligned through shared risk and reward

Product life cycle stages are considered in the development of the value equation
Product and process are designed together; indeed, all design criteria are considered when generating and selecting from design options

KEY LEARNINGS
Downstream players are involved in upstream work, and vice-versa Continuous learning and innovation is the real end game

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

KEY LEARNINGS
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 connected specialists is: Flow where you can, Pull where you cant, Push where you must Activities are performed at the last responsible moment

WHOS DOING LEAN?

Healthcare Projects (IPD or IPD-ish):

Sutter Health, Northern California

Camino Medical Center (DPR)

Castro Valley (Turner)

Cathedral Hill (Herrero/Boldt) Palo Alto Medical Center (Skanska) Sacramento General (renovation/new: Boldt)

WHOS DOING LEAN?

Healthcare Projects:

UHS, company-wide
Texhoma

Temecula: Reducing sqft costs to $900/

SSM, Cardinal Glennon, St. Louis St. Claire, Fenton, Mo.

WHOS DOING LEAN?

Healthcare Projects:

Affinity Healthcare, Appleton, Wis.

Augusta General, Maine

Martin Memorial, Stuart, Fla.

Seattle Childrens Theda Care, Wisconsin

WHOS DOING LEAN?

Public Projects:

School Projects:
Middle School, Dallas

Middle & High Schools, Los Angeles

Community College, San Diego St. Olaf College, Minnesota Community College, Cleveland

WHOS DOING LEAN? DESIGN FIRMS

WHOS DOING LEAN? CONSTRUCTION FIRMS

WHOS DOING LEAN? CONSTRUCTION FIRMS

WHOS DOING LEAN? TRADES

Visit www.leanconstruction.org for all of our Corporate members

THANKS!

Dick Bayer Interim Executive Director dick@leanconstruction.org 858-373-8449