Exploration of parallels in Lean and VM methodology in construction Steve Parker, Institute of Value...
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Transcript of Exploration of parallels in Lean and VM methodology in construction Steve Parker, Institute of Value...
Exploration of parallels in Lean and VM methodology in
construction
Steve Parker, Institute of Value Management
Our credentialsMe
• Value Management• Risk Management• Benefits Management• Lean Six Sigma
You• Lean?• VM?• Both?
DefinitionsLean Construction…
is a production management-based project delivery system, emphasizing the reliable and speedy delivery of value. The goal is to build the project while maximizing value, minimizing waste, and pursuing perfection – for the benefit of all project stakeholders.
Value Management (including VE)…is the process of making explicit the functional benefits of a project and appraising those benefits against a value system determined by the stakeholders. VM is strategically and organisationally focused and ensures strategic fit. VE is technically focused on space, elements and components and provides the necessary functions at the lowest cost and at a specified quality.
Core proposition• Lean focuses mainly on process (how
something is done)• Organisational or operating process; management process; design
process; production process or a project delivery process (main drivers - increased efficiency, reduced waste and cost)
• Value management focuses mainly on product (what something is)• Project scope, project design, system design, component design or
widget design (main drivers – required function, reduced waste and cost)
Approach to improving value
Review and define the current project conditions.
Define, chart, analyse and prioritise the project functions.
Identify other ways to perform the project’s functions.
Select the ideas that offer the potential to improve value.
Develop the best ideas with supporting business cases.
Report or present the ideas and how they should be implemented.
Define the problem and the objectives.
What do we need to improve? Can we measure this?
Analyse the process. Define factors of influence.
Identify and implement improvements.
Assure that improvements will sustain.
Lean (Six Sigma) DMAIC phases – How to run a process improvement project
Value Management (VE) Job Plan phases – How to run a product improvement project
Objectives of value improvementLean Construction
• Improve predictability• Reduce design and
construction cost• Reduce design and
construction time• Rationalise resources• Identify blockers to activity• Better performance visibility
Value Management• Identify vision and
objectives• Define aligned scope• Improve function• Distinguish between needs
vs wants• Eliminate over design• Reduce whole-life cost• Option evaluation
Benefits of value improvementLean Construction
• Shorter programme• Design process cost
savings• Construction process cost
savings• Increased programme
reliability• Better working practices -
efficiency
Value Management• Demonstrable ‘line of sight‘• Platform for benefits
modelling• Appropriate design• Efficient design with regard
to function• Valued intangibles• Decision audit trail• Lowest whole-life cost
Tools for value improvementLean Construction
• DMAIC (PDCA, Kaizen)• Voice of Customer• Critical to Quality• Process Mapping• Value stream mapping• 8 Wastes• 5Y’s• Statistical analysis
Value Management• VM Job Plan (Charrette)• Value Tree• Client Value System• Function Analysis• FAST Diagrams• Function/Cost Analysis• Relative importance• Brainstorming
More tools ….Lean Construction
• Pugh Matrix• Quality Function Deployment
• Visualisation Management• 5S’s• Collaborative planning and buffer
scheduling• NEC (or other) collaborative
contract
Value Management• Multi-Criteria Analysis• Value metrics / Value Index• Value for Money Ratio• Discounted Cash Flow• Cost Benefit Analysis• Functional Performance
Specification• Contract value engineering
clause
In common, they focus on….• What the client precisely needs or wants• Value improvement and value for money• Facilitating stakeholder engagement and consensus• War on waste• Eliminating unnecessary cost
Causally, they both….• Drive learning and knowledge transfer• Drive continuous improvement• Deliver innovation• Improve communication• Improve team working and morale
But individually….• Lean focuses on improving process or production
effectiveness and efficiency• Value Management focuses on improving product function
and form
Discuss….• Should the Lean Practitioner in construction
have Value Management techniques in his/her toolbox and vice versa?