Kickstart Your Lean Construction...
Transcript of Kickstart Your Lean Construction...
The project delivery specialists
LEAN PROJECT DELIVERY –
KICKSTART YOUR LEAN CONSTRUCTION JOURNEY
Kickstart Your
Lean Construction
Journey!1
Wednesday 25th March 2015
2
Michael Kerr
PM Group
Group Construction Services QA/QC Manager
Landline: 021 452 2852
Email: [email protected]
3
Agenda
• 19.00 Welcome
• 19:05 Introduction to Lean Construction & LCI Ireland CoP
John French, LCI Core Group Member
• 19:30 Keynote Speech 1:– The Lean Project Pathway
Richard O’Connor
• 19.55 Keynote Speech 2: – Enterprise Ireland Lean Business Offer
Richard Keegan
• 20.15 Lean Project Delivery – An A&E Perspective –
Mick Lynam, Director PM Group
• 20:35 Kicking off a Lean Construction Journey – MSD Ireland
• 20:50 Panel Discussion
• 21.00 Networking
4
The project delivery specialists
INTRODUCTION TO LEAN CONSTRUCTION & LCI IRELAND COP
John French, LCI Core Group Member
Kickstart Your
Lean Construction
Journey!5
Wednesday 25th March 2015
Ireland Community of Practice (CoP)
Agenda
1. Why Change, Why did we set up Lean Construction Ireland in May 2014
2. CoP Structure & Behaviour/Purpose & Goals 2015
3. The LCI Ireland CoP Journey – so Far
4. Takeaway
Ireland Community of Practice (CoP)
•1. Why Change, Why did we set up LCI -
Ireland CoP
Ireland Community of Practice (CoP)
Burning Platform for Change
(Source: US Chamber of Commerce, 2011)
Every Punchlist/Snag list item costs $2370
1000 Punchlists = $2.3M
Source : Larry Owen, ACIG -
Ireland Community of Practice (CoP) 9
The Construction industry has not achieved the productivity gains of many other sectors.
Recent studies document inefficiencies and waste in the construction industry. • Economist article from 2000 identifies 30%
waste in the US construction industry.• NIST study from 2004 targets lack of AEC
software interoperability as costing the industry $15.8B annually.
• US Bureau of Labor Statistics study shows construction alone, out of all non-farm industries, as decreasing in productivity since 1964, while all other non-farm industries have increased productivity by over 200% during the same period.
Ireland Community of Practice (CoP)
Why - Benefits1. Competitiveness & better
business yields2. Higher Quality Construction –
84% of practitioners3. Greater Customer Satisfaction –
80%4. Greater Productivity – 77%5. Improved Safety – 77%
(Source: McGraw Hill Construction SmartMarketReport – Lean Construction, Leveraging Collaboration and Advanced Practices to Increase Project Efficiency)
Ireland Community of Practice (CoP)
Why –“The Benefits”
Ireland Community of Practice (CoP) 12
Intel Construction RevolutionAn Owner’s Journey
External Learning
Construction Story & Internal Learning
Enterprise Vision & Goals/ Objectives
Eliminate Waste
Culture/ Behavior &
Collaboration
Standardize Framework
Feb 2013 Nov 2013 Jan 2014 Mar 2014 Jun 2014 Jan 2015
Launch Lean Construction Ireland May 2014
Ireland Community of Practice (CoP)
•2. CoP Structure & Behaviour/Purpose
& Goals 2015
Ireland Community of Practice (CoP)
Contractor
March 2014
LCI CoP Formed
Ireland Community of Practice (CoP)
CoP’s outside US LinkedIn• UK
1,109• Ireland
947• Denmark
728• Germany
116• Norway
na• Australia
183• Finland
na
LCI Ireland CoP
• CoP off LCI in USA• No Fee, • No funding source• No Membership – just
Share• All events are
sponsored
USA - The Home of LCI
Community of Practice
Structure ( CoP )
Ireland Community of Practice (CoP)
Core Group
1. Growth
6. Measure
2. Knowledge
3. Barriers
4. Collaboration
5. Demand
LCI Ireland CoP Structure
Core Group
Ireland Community of Practice (CoP)
LCI Ireland Core Team :• Owner
• John French - [email protected]
• Trade & General Contractor• Gary E. Widger - [email protected]
• Kevin White - [email protected]
• Scanlon, Fearghal - [email protected]
• Designer• Paul Sexton - [email protected]
• CIF• Sean Downey - [email protected]
• Academia / Construction Innovation Lab• Brian Clare - [email protected]
• Facilities Management• Vincent Gibson - [email protected]
If you want to get involved in LCI Ireland, please contact Core Team Member or Pillar Lead.
LCI Ireland Pillar Leads:1. Growth
• Gerry Walsh - [email protected]
2. Knowledge• Mick Delaney - [email protected]
3. Barriers• Dominic Greensmith -
4. Collaboration• Paul Daniel - [email protected]
5. Demand• Richie Casey - [email protected]
6. Measure• Elly parker - [email protected]
LinkedIn Address : https://www.linkedin.com/groups/Lean-Construction-Ireland-4332330
Ireland Community of Practice (CoP)
Ireland Community of Practice (CoP)
Purpose of CoP
• 7 Groups working together to change the Industry.
• Owners
• Trade Contractors
• General Contractors
• Academia
• Consultants
• Architects & Engineers
• Influential Bodies
Ireland is a Centre of Excellence for Lean Construction, where everyone in the chain benefits.
Ireland Community of Practice (CoP)
•3. The LCI Ireland CoP Journey – so
Far
Ireland Community of Practice (CoP)
• LCI May 2014 – Intel Launched –• Owners Perspective - John Pemberton/Joe Foley
/ Nick Masci• 160 Attended
• LCI June 2014 – Jones Sponsored–• Richard Donnelly 6ix Sigma – Tools & Techniques
& Case Studies• Dr Richard Keegan – Enterprise Ireland “ Quicker
- Better - Cheaper-Together”• 140 Attended
• LCI Sept 2014 – Mercury Sponsored–• Peter Court, MEP Director of Delivery at CHUM
Montreal for Construction Sante Montreal –“From Theory to Practice”
• Launch Pillar Strategy• 160 Attended
LCI Events ………….
Ireland Community of Practice (CoP)
• LCI Nov 2014 – CIF Sponsor • CIF Perspective, President of CIF – Philip
Crompton• Michael Stone ( designer Group ) & Murtagh –
Business Case• Pillars Reportout• 180 Attended
• LCI Feb 2015 – M+W Group Sponsored–• Barry O Leary – Irish Perspective to Embrace
Lean• Graeme Shaw – London Underground North
Line Case Study• 4 X Break-out Groups & Pillar Report• 240 Attended
• LCI March 2015 – PM Group Sponsored–• PM’s perspective• How to start a Journey• Clients Perspective – Merck/MSD• In Cork Area
We area Here
Ireland Community of Practice (CoP)
• Event #7 – LCI- Ireland CoP – June 2015Details & Location TBD
• Event #8 – LCI- Ireland CoP – Sept 2015Details & Location TBD
Future Events
• Event #9 – LCI- Ireland CoP – Nov 2015Details & Location TBD
• National Lean Construction Awards - LCI- Ireland CoP – Q4 2015Details & Location TBD
Ireland Community of Practice (CoP)
Tactics for 20157. Develop Website – Demand
Leader - Richie Casey
10. Clients Forum - BarriersLeader - D Greensmith
3. Lean Const Starter Pack –Knowledge
Leader -Mick Delaney
2. Script LCI Ireland Message –Growth
G Walshe
4. Lean Development Pack –Knowledge
Leader -Mick Delaney
5. Promote Lean ( Coaching ) -Demand
Leader – Richie Casey
1. Develop Finance Plan for LCI CoPLeader - D Greensmith
6. Develop Lean LibraryLeader – Eleanor Parker
8. National Awards CeremonyLeader - Paul Daniel
9. IGLC SubmissionsLeader - Paul Daniel
H1 ‘15
H2 ‘15
Ireland Community of Practice (CoP)
http://leanconstructionireland.org/wp/
Ireland Community of Practice (CoP)
Takeaway
Ireland Community of Practice (CoP)
WhyWhat
How
BIM VSM
Visual Factory
Poka-Yoke
Pull Plan
KaizenJIT
Andon
7 Wastes
5S’s
Gemba Walks
KanBan
DO
PDCA
TVD
Where to Start
• Understand your Why• Start with the People ,
not the Tools• Go Narrow & Deep• Glorify your early
adopters
What is Your Organisations
– “ Why “
Ireland Community of Practice (CoP)
The project delivery specialists
KEYNOTE SPEECH 1: THE LEAN PROJECT PATHWAY –
YOUR ROUTE TO DELIVERING A GREAT PROJECT
Richard O’Connor
Kickstart Your
Lean Construction
Journey!29
Wednesday 25th March 2015
Presentation Outline
• Applying Lean through all stages of the project cycle
• Introducing the Lean Project Pathway
• Making-it-happen - Elements for success
• Take-aways
Lean = Delivering Better Value
Project Costs
Market Price
Adding Best Value at Minimum Cost
Cost
Profit
V-A
NVA
WASTE
Time
Future- Price Down?
Optimise benefits by applying Lean through the whole project cycle
Each main project phase is made up of a number of sub-phase activities
‘Micro’ Process Level
Value Adding Non Value
AddingWaste
How well do all interacting parties play as a team?
- Play well within their own tents?
- Do not always have the same game plan
- Are the right moves always played?
- How well are the moves completed?
- Visibility and control?
One view of construction project delivery
A beautiful game?
The Lean Project Pathway
Lean Project Strategy
Activity
Lean vision & objectives
Integrated high performing team
Collaboration – Design, costing, planning
Stable supply
Establish measurement processes
1% productivity improvement month on month
50% reduction in the cost of quality
CLC Landside facil ityLogistics scheduling Control
Point
Design production of approved drawings
Motts - P2 level
MaterialsMarshalling Area
(Airside - adjacent
to work area)
Erect Steelwork + Handrail Assembly
1 erection gang4 members
to erect as designed
steelwork
1 fol low-up gang3-4 members
on-s ite works to deal with late design
Qual ity Check
Process rates = quality = No. People = Gangs =
shi fts =
Assembly of Handrail
onto Steel Work done on-s ite
Daily (per shift) confirmation of timed materials supply
Control Point 18
-
600 moves/ day max
current load = xx %Lead-time =
Balfour Beatty system
Del ivery Management System &
Qual ity Management System
WatsonDevelop design + correction
foot plate drawing for approval
Watson- 3D modelling
- I.D. all components, Compt List + Fab. Drwgs- Set of instructions for CNC manufacture
- Bill of Materials + Auto orders to Steel Supplier(s)Securi ty and document
check
I
Excess Stock
25t Trailer
Steel SuppliersCorusTata
European - Recycled Steel
IMax =
Monthly prodn. run
Drivers drop-off loaded trailers
Shunt vehicles moce
between CLC and site, picking up loaded
trailers as required.Empty trailers dropped
off by shunt vehicle.Returning lorries take away empty trailer.
Lead time between 2 hours to over 2 days
No. of iterations?Lead time for Approval?
Auto order for Steel by month
RUUKI (Finland) PROROOF (Estonia)
Panel Assemblyoutput rate
= 250-300 sq m / wkII
3 Tra i ler Loads
PRATER
Mon & Weds Despatch2 Gridlines = 6 Tra i ler Loads
FERRY
- Detailed design drawings- Auto order for Roofing by month
2D-3D modelling- Positioning- Clash detection- Service penetrations
- Veri fied design drawings- Bi l l of materials & MRP
- Time & quantity order schedule
CORUS (Merseyside)
Itbc
Harwich or Tilbury Dock
25t Trailer1 shift load = 6 Trailers
Installation of roof panels- Production Rate = 1 gridline per shift- Just-In-Time delivery of 1 shift load called-off from CLC by BB logistics
when needed - avoids on-site congestion- Roof panels pre-assembled in factory and shipped direct to site via CLC- Additional pre-installation of roof lights - ensures quality and minimises
working at height- Each gridline becomes weathertight
DESIGN
- Panel sizes- Shop drawings
60m Mobile Tower CraneLoad panels directly from trailer to roof as needed
MaterialsMarshalling Area
(Airside)
Adjacent to work area
(Stops double-handling)
Install Roof Panels and Roof l ights
18 panels / shift1 panel = 21.6 sq m
1 gang6 people
Waste packaging materials segregated and full skips removed by site logistics
Production and Material Logistics Planning and Control - for all products / trades(Balfour Beatty, Byrne Brothers, Watsons, Prater Lindner)
Tuesday: 6 weekly co-ordination meeting with Client to review forward programmeWednesday : 2-Weekly look-ahead - Agree weekly production plan and material delivery schedulesThursday: Northern Logistics meeting + Integration meeting for night working and weekend working
Confirming work plans, key interfaces with client, handover areas and timing, weekly look-ahead logistics drawings
STRUCTURAL STEEL
ROOFING
Qual ity Check
Qual ity Check
Installation of Steelwork- Production Rate = 1 load per shift- Just-In-Time delivery of 1 shift load called-off from CLC by
BB logistics when needed - avoids on-site congestion- Pre-assemble handrails prior to erection - ensures quality
and minimises working at height
Log NCRs & RFIs for any design
changes
Feedback to Design Team according to Balfour Beatty Design Change Control procedure
Delivery as per timed schedule of finish painted steelwork
Watson Steel (Bolton or Thirsk)
I-Beam Section Pre-
FabricationII
2 days
Average
ShotblastIStore in Yard
Avg Qty = ??days
Paint&
Cure
Formal Quality Control Handoverinvolving Package Manager, Structural Engineer, Out-going
Trade, In-coming Trade
Formal Quality Control Handoverinvolving Package Manager, Structural Engineer, Out-going
Trade, In-coming Trade
Daily (per shift) confirmation of timed materials supply
25t Tra i ler1 shi ft load (6 + 2) Elements
Install Cladding
6-8 Elements / shift1 Element =
8.5x3m (2.3t) max.6x2m (1.2t) min.
1 gang6 people
+
Crane Operator
Waste packaging materials segregated and full skips removed by site logistics
Formal Quality Control Handoverinvolving Package Manager, Structural Engineer, Out-going
Trade, In-coming Trade
Qual ity Check
Single load pulled to site when required -typically afternoon delivery for night shift
Single load pulled to site when required -typically afternoon delivery for night shift
KALZIP ROOF(on top of ProRoof panel)
Delivery stil lages flat-packed abd returned as 1 load
(20 per load)
2 stil lages per trailer8 Elements per shift
Each Element pulled as required
60m Mobile Tower CraneOff-load from trailer
Sort into required installation sequence
Erect in position via crane
I
HEUCKProfile
Extrude & Paint(Lead time 8 weeks max)
I 1 Vehicle + Tra iler Load1 load per shift requirements + 2
8 Elements per journey(lead time = 1 day)
Dover Dock
FERRY
1 Vehicle LoadCal led-off per week9m painted lengths
TEILE (Germany)
1 Vehicle LoadAssembled double-glazed & coated
Supplier(s) (Germany)Gasket & Fixings
LIDNER FACADES - UK
Monthly Forward PlanWeekly Focus Meeting
Cal l -off process
Cal l -off Despatch plan
Lead time = Same day delivery (within 24 hours)
tbc
AIRBUILD - Material Control System
- Verified design drawings- Bill of materials & MRP- Time & quantity order schedule Installation of Cladding Elements
- Production Rate = 1 gridline per shift- Just-In-Time delivery of 1 shift load called-off from CLC by BB logistics
when needed - avoids on-site congestion- Cladding pre-assembled in factory and shipped direct to site via CLC- Additional on-site pre-assembly of Stick System- Each gridline becomes weathertight allowing follow-on internal fit-out
CLADDING
UK Suppliers- Glass
- Gaskets- Flashing
- Trims
Average 2 deliveries per
week
I
Various items2-3 days
maximum
Des ign Drawings+
Del ivery Schedule
I
Potential to hold up to 1.5 days of stock
(tbc) i f an issue occurs on-site
LINDER FACADES (Germany)
ICut Elements
Assemble and Inspect
Elements
Pack Elements
Dedicated production line
I
Max 50 stillagesMin 8 stillages
1 week'sMaterial
AIRBUILD:- Controls material movement from Suppliers into CLC and Marshalling areas- Airbuild allocates delivery time slots for access into CLC - slots being aligned to up-to-date construction requirements as
communicated from site- If vehicles do not have an Airbuild booking, then no access onto site- Ensures effective and efficient 'single-load' flow of material to site and provides the 'pull' signal for material movement
AllocateTransaction No. +
location of delivery Airbuild System
Daily confirmation of material
requirements to site logistics team
Transport company receives
informationMaterials delivered
Confirm delivery of materialsCLC Material, Delivery, Faciltiy controls
Excess design iterations + NCRs due to design
integration issues
Is sues associated with the
coordination of transport -resulting in excess deliveries
Excessive inventory due to poor integration of planning systems - on average over 2 weeks stock in the system
Use of shunt vehicles introduces double handling
and scheduling / coordination was complex
I
Excess Stock
Working at height and productivity i ssues due to assembling safety
handrails in situ as height. Slows fol low-on trades.
Additional handling and associated equipment -
impacts productivity.
Part finished components requiring excess on-site
remedial finishing works..
Issues with quality and installation methods causing
additional works on site.
Des ign issues resulting from poor integration of design team plus l imited use of design modelling.
Small component design and production - resulted in
excess inventory and transportation.
Is sues associated with the coordination of transport -
resulting in excess deliveries
Excess inventory due to poor integration of planning
systems - on average over 2 weeks stock in the system
Excess inventory
I
Small panels and components requires excess working at
height, excess material handling and associated plant.
Impacts productivi ty.
Qual ity check after installation - i f any NRFT quality i ssues,
then results in excessive rework effort, time and cost.
Integrate Tool /
Service
Business
JustificationBrief & Scope
Establish KPIs +
Associated
management
system
Feasibility Study
Review of
feasibility Study +
site visit to
discuss how to
overcome any
issues
Cost Study Business CaseBoard Approval /
Sign-off
Value
Management +
Whole Life Cost
Analysis + Risk
Management
workshop
Cost Challenge
Workshop 1
Update Cost Plan
+ Savings
Register
Outline Design +
Program
Review workshop
(SITE BASED??)
Room Data
Sheets
Sign-off Plan &
CostDetailed Design
Create Drawing
Schedule
Value
Engineering +
Risk Mgt
Cost Challenge
Workshop 2
Detailed Cost
Plan
Agree Target
Cost
Develop Sample
(panels, room,
etc)
Presentation,
review & sign-off
of Samples
Capital Board
Sign-off
Define decant
process / programPlace Order
Collaborative
Planning
Workshop
Pre-construction
Plan +
Documents
Start on site
Milestone Timing By 31st March 08 By 31st March 08
Board + FIC
Approval by 16th
(mid) May 08
by 30th May 08 by 27th June 08
Start Mid May
Finish by 18th
July 08
By 18th July 08 By 1st August 08
By 1st Sept 08 -
(predicted
construction time
of 24 wks)
Capital
Developments
Mgr
Estates StrategyDefine project
outputs
Agree KPIs +
process +
ownership to
drive / use on the
project
Appoint Architect
& review Brief +
other potential
works with
Architect
Define what is
required on the
scheme
Minimum build
standards (HBN)
Lessons learnt
from previous
projects
OverseeReview with
Program DirectorRaise Requisition Lead
ABCC-ordinate &
AuthorConsulted
Minimum build
standards (HBN)
+ 100 scale
drawings + initial
program
Lessons learnt
from previous
projects
Lead
Project Manager
Agree KPIs +
process +
ownership to
drive / use on the
project
Design option,
program, cost +
narrative
Coordinate Lead Lead Coordinate Coordinate Coordinate Coordinate Coordinate
Constructor
Prices per sq m +
real costs on
items such as
ironmongery, etc
Ease of build +
phasing + input to
program
Lessons learnt
from previous
projects
Including sub-
contractors as
necessary
Get prices from
Sub-ContractorsLead
Place sub-
contract + long
lead item orders
Architects
Design option,
program, cost +
narrative
Basics for the
scheme + info
from specialists
Lessons learnt
from previous
projects
End User
Clinical
Justification +
Clinical Risks +
Decant
Define project
outputs
Define what is
required on the
scheme
Staff experience
and needs + any
key date
milestones /
considerations
1. Jackie; 2.
Eddie
Review and Sign-
off Detailed
Design
Input points to be
considered +
specific needs
QS
Design option,
program, cost +
narrative
Formulate Initial
Cost Plan
Outline
construction
costing + fees
Lead
Trust Finance
Review costs +
implications to the
service
Review costs +
implications to the
service
Performance
Manager
Lead / co-
ordinate
implementation
Lessons learnt
from previous
projects
COOReview Business
Case and Sign-off
Review and Sign-
off Detailed
Design
BoardReview Business
Case and Sign-off
Review and Sign-
off Detailed
Design
MobilisationOutline DesignFeasibility Detailed Design
Integrate Tool /
Service
Business
JustificationBrief & Scope
Establish KPIs +
Associated
management
system
Feasibility Study
Review of
feasibility Study +
site visit to
discuss how to
overcome any
issues
Cost Study Business CaseBoard Approval /
Sign-off
Milestone Timing By 31st March 08 By 31st March 08
Board + FIC
Approval by 16th
(mid) May 08
Capital
Developments
Mgr
Estates StrategyDefine project
outputs
Agree KPIs +
process +
ownership to
drive / use on the
project
Appoint Architect
& review Brief +
other potential
works with
Architect
Define what is
required on the
scheme
ABCC-ordinate &
AuthorConsulted
Feasibility
Activity
Good consistent processes
Gateway planning
Right first time design – BIM, FMEA, DFMA, design delivery
Collaborative programming including critical path / constraints analysis & pace + Plan-to-protect
Establish measurement processes
The Lean Project Pathway
Lean Pre-construction
The Lean Project Pathway
Lean Mobilisation
Activity
Plan, review & challenge all activities to ensure readiness and right first time construction
Detailed day-by-day look-a-head programme including challenge, pace, line balance
Mock-up training + draft standard operations
Pre-works readiness
Set project standards (e.g. 5S & visual management)
Issue Ref. No: Care Point Key
Issue Date: Safety
Quality
Page 3 of Knack
Main Task Step Main Task Step
Continue to work from the back of the plot to the front so as to
ease access
May have to use sledge hammer to help seat panel and to help
butt up against adjoining panel
For the reason of easy access, it is often beneficial to start
erecting inner wall panels before erecting final outer wall panel
(No. 17)
DPC used to provide water barrier bewteen outer walls at seams
and adjoining internal wall
Start at top edge and nail DPC to wall face to hold in position, then
unravel DPC roll downwards, measure & cut DPC to length, and
nail to wall face
Refer to drawing to ensure selection of correct Top Plate
Position each Top Plate so that outer edge is flush with outer face
of wall panel
Levelling Up all WallsLevelling all walls to ensure erection is within allowable vertical
tolerance
- Lay length of 90mm timber diagonally against
upright wall to be levelled
- Fix timber pad to floor Use Hilty gun to drive fixing through timber pad into floor pad
- Nail bottom end of timber diagonal into
timber pad
- Using spirit level check vertical edge of wall
panel for level of upright
Pushing against top of panel using a foot will often create the
required level of adjustment. Check drawing for allowable
tolerance level.
- If required, adjust panel by pushing top of wall
panel in the required direction
If greater force is required to achieve necessary adjustment then
drive a wedge between the outer face of the wall panel and the
scaffold (if erected)
- Use eye to check line of top face along panels
Alternatively, lever the whole frame in the required direction by
using a lever in the central void between the two properties
W hen specificied level of vertical is achieved,
nail top of timber stay to inner upright on wall
panel
Hammer 2 nails, not driving nails completely home, so later
removal of timber stay is easy
Recheck vertical position using spirit level
9
SketchOperator 2
Care Point
6
Repeat erection of remaining outer walls
following the basic steps defined in points
3, 4 5 & 6, and by following basic
sequence of panel erection as defined on
sequence drawing
No.Operator 1
Fit DPC to vertical faces down seam edges
as indicated on the drawing. Repeat for all
specified positions.
7
Fix Top Plates to top edges of erected walls
(Repeat for all walls as indicated by
drawing)
2-PERSON JOB DETAIL SHEET
Work / Job Description:
Timber Frame
Outer Wall Erection - Ground Floor
8
Suggested location
of timber pads used
when levelling-up
vertical walls
Position Timber pad so
that timber diagonal
lines up with an inner
upright of wall panel
Adjust panel level of
vertical by pushing top
edge of panel. W hen
vertical, nail timber
diagonal to inner
upright of wall panel
The Lean Project Pathway
Lean Construction
Activity
Collaborative project management (weekly & daily)
5S workplace organisation
Production loss analysis
Problem solving
1st run studies – best methods & productivity improvement
Visual management
Synchronised JIT material logistics
Value Adding Non Value Adding Waste EnforcedWaste
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
10
20
30
40
50
60
70
Design Change IncorrectMaterials
Waiting forInformation
LabourAvailability
CraneBreakdown
Material PoorQuality
Late Deliveries
Lost Production Time
THE PROBLEM:
Date Raised: Where: How: Who:
Where:
Originator: Work Stream:
When:
Owner Target Date Owner Target Date Owner Target Date
PDCA applied Design revision required? SOP updated / created?
Team brief? Benefits realised? Issue resolution documented?
Improvement Sign-off Other areas where the Improvement can be applied
Other Decent Homes programmes
Excessive level of quality defects at handover
Over 148 properties, 50% of properties had
defects at handover13% of quality defects attributed
to Defective Radiators
Yes No Yes
Yes Yes - Issue resolvedYes and logged as part of learning
portal
F Smith 9th April '07 H Jaycock 16th April '07
Client team relied on Surveyor
experience and did not see the
need to define method
Not considered an important focus
and stuck with what was common
current practices
Work with Surveyors, Decent Homes
work stream supervisors and plumbers
to define an agreed method. Develop
standard operating procedure. Train
all relevant people.
Carry-out a 5S Workplace
Organisation activity to improve the
set-up, organisation, operation and
management of the central stores.
Rationalise stored stock. Develop
standard operating procedure to
support. Train all people in new
methods.
Define and standardise method (link to
root cause countermeasure as for
'Wrong Radiator Supplied'), train all
relevant people. Contractor and trade
supervision to ensure standard
approach to radiator position is
adhered to.
Poor materials planning and
management processesNot considered to be an issue
Main focus and effort directed towards works
delivery with limited visibility or understanding
of stores set-up and operation
Management never 'sighted' as the
issue due to no / limited data
A3 PROBLEM RESOLUTION SHEET
20th March '07
F Smith
Decent Homes Project XYZ
All
Toolbox talk to all trades plus
closer supervision and review
at property sign-off
Supervisors
All work streams
Immediate
Incorrect specification Poor storage practices & handlingVariable method of specifying position
of radiator in a room
Unclear and variable approach
between the Surveyors
Materials, parts and componentry stored
randomly and poorly, often on top of one another
resulting in double handling, scuffing and damage
Method not defined plus some Surveyors &/or
Plumbers changed optimum position in response to
Tenant request
INDENTIFY THE ROOT CAUSE
5 Why Analysis
CO
UN
TE
R M
EA
SUR
EV
ER
IFY
RE
SOLU
TIO
N /
IMP
RO
VE
ME
NT
AC
TIO
NR
OO
T C
AU
SEW
HY
2W
HY
3W
HY
4W
HY
5
Wrong Radiator Supplied Damaged Radiator Incorrect Location
WH
Y 1
Unclear method + different
assumptions used when calculating size
of radiator required
Too much stock stored and poor
organisation of central stores
Method never formally defined nor
enforced
Method never formally defined
INFORMATION RELATING TO THE ISSUE CONTAIN
Fishbone Analysis
INDENTIFY THE ROOT CAUSE
UNDERSTAND THE ISSUE
50%50%
Properites With Quality Snags
No. Properties with Snags No. Properties Snag Free
Data period: 19th-23rd Mar 07Sample Size: 148 PropertiesDate Drawn: 26th Mar 07Drawn By: J Smith
1310 9 9
3 3 2 1
26%
46%
64%
82%88%
94%98% 100%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
10
20
30
40
50
Radiators BuildingWorks
Pipe work/ Trunking
Domestic& Blow
Off
Boiler VerticalFlues
ElectricalWorks
Gas
No
. o
f O
ccu
ren
ces
Analysis of Quality IssuesData period: 19th-23rd Mar 07Sample Size: 148 PropertiesDate Drawn: 26th Mar 07Drawn By: J Smith
8
3
1
0123456789
10
RadiatorChange
Damaged Grille MarkedRadiator
No
. o
f O
ccu
ren
ces
Analysis of Radiator Quality Issues
Data analysed to
understand types of
defects made up the
50%
The Decent Homes team used
fishbone analysis to identify
all possible contributory
factors to the Radiator
Change issue.
Data relating to
Defective Radiators
analysed to reveal
main quality issue
Radiator
Change
Person Material
Machine (Tools)
Method Environment
Incorrect
Fitting
Cutting
Corners
Grill
Damage
Wrong
Size
Wrong Radiator
Supplied
Specif ied
Lack of
Training
Lack of
Care
Damaged
Radiator
Handling
Packaging
Storage
Connector
Thread
Incorrect
Tools
Insuff icient
Tools
Damaged
Tools
Marking
Out
Incorrect
Location
Tenant
Preference /
Change
Incorrect
Fitting
Poor
Method
Poor On-site
Storage
Diff icult Working
Conditions
Cramped
Furniture not clearedSmall
Rooms
Additional data identified
3 factors that were the
main contributors to the
problem
Keep asking 'Why'
until you feel that you
have exposed the true
'root' cause of the
issue
PROJECT: ABC Overall % VA
OPERATION: 2nd Fix Carpentry Total Steps 14 4 3 0 0 21 31.1%
PROCESS: Total Distance % Waste
DATE: 2011 Total Time 40.0%
No. Workers Distance Time Oper'n Tran's Delay Insp'n Store VA NVA Waste
1 Unload materials from van 3 26 3 3
2 Sort materials for fix 1 12 12
3 Take off protection to boxes 1 57 6 6
4 Mark positions of switches and sockets 1 61 11 11
5 Cut plasterboard for light switch in living room 1 2 2
6 Fit back box for switch 1 1 1
7 Trim cables 1 1 1
8 Connect the switch 1 2 2
9 Move to sockets 2 7 0.5 0.5
10 Fit sockets 1 3 3
11 Unpack light fitting 1 1 1
12 Walk up step ladder 1 2 0.5 0.5
13 Fit light fitting 1 2 2
14 Repeat in the next room 2 10 16 12 4
15 Cut hole in plasterboard to find cable 1 12 12
16 Feed cable back to the correct position 1 4 4
17 Refit the plasterboard cut outs 1 8 8
18 Fit light switch 1 2 2
19 Cut back cables to sockets 1 1 1 1
20 Fit sockets 1 2 2 2
TOTALS 24 166 90 14 4 3 0 0 28 26 36
Dry liners hadn't pulled the cables through w hilst boarding
Running concurrently
Apprentice is passing materials
ValueComment / IssueNo. Activity / Element
Measurement Flow
COMPANY: XYX ACTIVITY
SAMPLING
SHEET
SUMMARY
Work Study
0 20 40 60 80 100
Minutes
2nd Fix Electrical
VA
NVA
Waste
Work AnalysisStandard
Operations
Issue Ref. No: Care Point Key
Issue Date: Safety
Quality
Page 2 of 5 Knack
Main Task Step Main Task Step
Clear path from panel stack to erection position.
Ensure safe lif ting method.
Refer to draw ing to select appropriate panel
Start erection in rear corner of plot - w ork from back
to front of property to aid access
Secure 1st outer panel in position Ensure trained & competent in the use of hilty gun Secure 1st outer panel in position
- Nail panel through bottom timber into so le
plate, one nail in each end + one in the middleUse Hilty Gun for rapid nailing
- Fit timber stay to hold panel uprightTimber stay used to hold panel upright w hilst fetchiing
next panel
Fetch, position & secure 2nd panel Ensure safe carrying & passage as for Step 1 Fetch, position & secure 2nd panel
- Nail panel through bottom timber into so le
plate, one nail in end next to 1st panel.
Ensure 2nd panel is in correct position w ith regard to
outer edge of sole plate, is butted-up f lush w ith
adjoining face of 1st panel
- Check position of 2nd panel and that both
panels are verticalUse spirit level to ensure both panels are vertical
- Nail 2nd panel to 1st panel down vertical
inner edge. Remove timber stay from 1st
panel.
Use hammer for easier access + claw to pull nails
from timber stay & panel
- Nail 2nd panel through bottom timber into
so le plate, one nail at least every 600mmUse Hilty Gun for rapid nailing
Fetch, position & secure 3rd panel Ensure safe carrying & passage as for Step 1 Fetch, position & secure 3rd panel
- Select next panel that adjo ins either o f the
first two panelsRefer to draw ing for panel identif ication
- Repeat nailing and butting-up procedure as
for step 3
Ensure panel is positioned correctly - flush against so le plate
edge & with vertical face of adjo ining panel
To ensure flush fit between adjo ining vertical faces lift bottom
corner o f panel currently being fitted (Figure 1)
Use Hilty Gun for rapid nailing - Hold Wall panel upright & in position
3
2
Operator 2
- Hold Wall panel upright & in position
Care Point
1
2-PERSON JOB DETAIL
SHEET
Work / Job Description:
Timber Frame
Outer Wall Erection - Ground Floor
Sketch
Get f irst outer w all panel and lif t to
position for erection
Get f irst outer w all panel and lif t to
position for erection
Ensure appropriate head protection is
w orn
No.Operator 1
- Hold Wall panel upright & in position
- Hold Wall panel upright & in position
4
Nail panels together hammering nails
dow n through top edge of one panel
into adjacent panelM ay have to use sledge hammer to help seat panels so as to
ensure level top face along adjacent panels
Nail panels at low er outer face through
panel overhang into sole plate6
5
Stand on appropriate raised w ork surface that is
properly erected and stable
Before using any tools, equipment or plant you must have undergone relevant training and possess evidence that proves competence in the safe use & effective operation such item(s)
Vertical f aces must be joined so that continuous
contact along length of
Fixed Panel
Figure 1
Erect f irst panel starting on one of
the rear corners of plot
Whilst 1st Operator adjusts panel into f inal position, 2nd operator
holds panel staedty & upright
Improve
The Lean Project PathwayPost Construction
Activity
Well planned and managed activities /processes to support handover & maintenance
Collaborative post project review- Lessons learnt- Interface wastes
Problem solving
Improved processes & practices
A Lean View?
• A good squad
• Team work
• Practiced
• Flow
• Visibility
• Control
• Continuous improvement
• Achieving goals!
Lean Tools and Techniques
Applying the appropriate tool to the right situation.
Be prepared to adapt the approach.
Don’t become a ‘tool head’!
Apply within the context of an overall
Lean strategy
“The significant
problems we have
cannot be solved at
the same level of
thinking with which
we created them”.
Lean StrategyLean Pre-
ConstructionLean
MobilisationLean Project
DeliveryLean Post
Construction
The Lean Project Pathway• Agreed project vision
& objectives• ‘One-team’
collaborative strategy• Collaborative design,
costing & planning• Supply chain
development• Agreed performance
measurement
• Good, consistent processes• Gateway planning• Right first time design –
BIM, FMEA, DFMA• Collaborative planning
including critical path, line balance & pace + Plan-to-protect
• Establish measurement processes
• Set standard for visual management & 5S
• Collaborative project management – Last Plan
• 5S workplace organisation
• Production loss analysis• DMAIC root cause
problem solving• Quality & productivity
reviews• KPI performance analysis• Visual management
• Plan, review and challenge to ensure readiness for construction
• Collaborative detailed short-term planning – day-by-day, pace, line balance & flow
• Mock-Ups & 1st run studies• Draft standard operations• Best methods training• Lean logistics
• Well structured and planned handover (e.g. Soft Landings)
• Collaborative post project review – lessons learnt, issues, opportunities, etc.
• Define and capture best practices and processes
• PDCA
Lend LeaseLean and Continuous Improvement Toolkit
PROCESSES CULTUREPEOPLERELATIONSHIPS COMMUNICATION
30% increase in design capacity
Up to £5 million per annum bottom line gain
Design predictability improved by over 50%
Pre-construction lead time reduced by 40%
Productivity tripled
NRFT quality reduced by over 70%
Programme stability
Improved safety
Lean Construction Projects
Benefits Delivered
Construction programme duration reduced
by between 20 – 67%
Lean Construction Projects – Elements for Success
• Improvement currency - what’s the value of a day?
• Leadership & management – vision, strategy, constancy, ‘walk-the-talk’
• Create the enabling environment• Capability, capacity, time, resources
• Procurement versus supply chain development
Process 1 Process 2 Process 3 Process 4 END USER
VALUE CHAIN
SUPPLIER TOCUSTOMER OF
NEXT CUSTOMER
Process 1 Process 2 Process 3 Process 4 END USER
VALUE CHAIN
SUPPLIER TOCUSTOMER OF
NEXT CUSTOMER
• End-to-end – apply the 5 Lean ‘process’ principles
• One team, one vision• Early engagement
• Collaborative
• Next customer
Here is Edward Bear, coming downstairs now,
BUMP
BUMPBUMP
On the back of his head, behind Christopher Robin.
It is, as far as he knows, the only way of coming downstairs, but sometimes he feels that there really is another way, if only he could stop bumping for a moment and think of it.
Stand back, review, challenge, improve
You’ll feel better for it!
Lean Construction Projects
Take-aways
• Lean Project Pathway – one page overview
• CIRIA guide
http://www.ciria.org/News/CIRIA_news2/lean_thinking_approach.aspx
• 15-30 minute challenge15-30 Minute Challenge
1
2
3 Observation 1 Observation 2 Observation 3 Observation 4 Observation 5 Averages
Row 1 Total number of operatives you can see 12 14 13 12 15 13.20
Row 2
Number observed actually doing something
to progress the construction of the
building. i.e. laying a brick, bolting steel, fixing
a cladding panel etc. Do not include moving
materials, walking or an operative watching
another whilst another works etc.
8 6 4 7 9 6.80
51.52%
Row 3
Number observed preparing to carry out
work. i.e. moving materials, plant, tools,
themselves, setting out, reading drawings,
clearing up etc
2 4 5 2 3 3.20
24.24%
Row 4
Number observed waiting, walking, looking
for materials, information etc2 4 4 3 3 3.20
24.24%
Non Value Adding - Any work carried out, which is necessary under current conditions but does not increase product value e.g. inspection, setting out,
movement of people, material and plant, etc.
Waste - All other meaningless, non essential activities e.g. Excessive Transportation of Men, Materials, Tools & Plant, Waiting, Excessive Operator Motion,
Rework due to Bad Quality
Instructions for 5 brief observations in a 15 minute period:
- In Row 3 under Observation 1 - write the number of operatives carrying out Non Value Adding work
- In Row 4 under Observation 1 - write the number of operatives who are partaking in Wasteful activities
- Finally calculate the results as shown in this example
Brief description of activities being observed
- Repeat the same process for Observations 2,3,4 & 5 at 3 minute intervals
Value Adding - Any process that changes the nature, shape or characteristics of the product, in line with customer requirements
e.g. laying a brick, crimping a pipe, pouring concrete etc
Take 15-30 mins to make a brief assessment of the level of value adding activities on your project
- Position yourself in a comfortable, safe position where you can observe the largest number of operatives at work
- In Row 1 under Observation 1 - write the total number of operatives you can see on your first observation
- In Row 2 under Observation 1 - write the number of operatives carrying out Value Adding work
Value
Non Value Adding
Waste
51.52%24.24%
24.24% Value Adding
Non Value Adding
Waste
Thank you …
The project delivery specialists
KEYNOTE SPEECH 2:
ENTERPRISE IRELAND LEAN BUSINESS OFFER
Richard Keegan
Kickstart Your
Lean Construction
Journey!48
Wednesday 25th March 2015
Why is the world going Lean?
Because it works!!
Who am I?
• Enterprise Ireland, Competitiveness Department
• EU Japan Centre for Industrial Co-Operation
• European Benchmarking Network
• Advisor Internationally on Benchmarking and Best
Practice
• Trinity College Dublin, Business School
• Author
Lean - Action based on FACTS
How GOOD are you? How do you know?• Benchmarking = Diagnosis
Do you DECIDE to get better?• Lean - Best Practice = Medicine
Facilitated Assessment
Benchmarking
Physical&Process Flow in the Office
Physical&Process
Development
Production Control Systems
Saving Time in the Workplace Maintenance
Practical Quality Tools
Team Building & Culture
Sales and Growing them
Financial Management
Supply Chain & Logistics
Innovation&
Design
Business Strategy
Implementation
Level 3
Self Assessment Benchmarking Physical Flow Process Flow
Set Up Time
Reduction
Check Sheets
Run Chart People & Teams
Basic
Maintenance
Level 1
Level 2
Process Benchmarking The Five S’s
Total Productive
Maintenance
Overall Equipment Efficiency
Six Sigma
Business Excellence
Value Analysis &Management
Lean Production
Target Cost Management
What do we mean by Lean?
• Lean is shorthand for Best Practice within a sector
• Helps People identify and deliver improvements in their
businesses
• Provides a framework for competitiveness improvement
by building the capability and competences of people
• Driving and integrated into company strategy
What is Lean?
• Based on the Toyota Production System
• Focused on Effectiveness and Efficiency
• Doing the right things well!
• A War on Waste!!!
• What is the alternative?
QUICKER
BETTER
CHEAPER.........TOGETHER
Lean is doing what you do….
Some Lean Principles….
• Time
• Money
• Effort
Must want to compete…..
Rules
1. Fairness
2. Firmness
3. Consistency
4. Look
5. See
6. Understand
7. Think
8. Do
Dealing with People
Dealing with Processes
Five Fundamental Lean tools…..
• Process Mapping
• Physical Flow mapping
• Check Sheets – What is going wrong?
• Run Charts – Is it getting better or worse?
• Teams – People working together to improve their business
Key Lean Questions…..
• What are you doing?
• How are you doing it?
• Why are you doing it?
• Who is going to improve it?
• When?
Capture the FACTS!
Make things better…..
NOT just on the Production Floor!
Enterprise Ireland Lean Business Offer
Eligible cost elements Client
costs
EI grant
Lean-Start ‘Lean’ consultancy
fees at €900 per day
€6300 €5000
Lean-Plus ‘Lean’ (& specialist )
training fees
Cost of company
‘lean project champion’.
subject to EI assessment.
Up to
€70 k
Up to
50%
Lean
Transform
Training fees
training costs
company staff costs and
other costs as may be
approved by EI
Typically
over
€100 k
As set by
EI.
< 50%
Lean Works - Project Impacts
Savings Reported from Lean Start Projects
0
100
200
300
400
500
600
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57
Th
ou
sa
nd
Eu
ro (
€k
)
LeanPlus Reported Savings
0
50
100
150
200
250
300
350
400
450
500
1 2 3 4 5 6 7 8 9 10 11 12
Savin
gs (
€K
)
Transform Projects reporting very significant results…
Percentage change in employment for companies
engaged in Lean Transform Projects
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Company
% Chan
ge in E
mploy
ment
Employment up
Savings made
Just because you can’t do it doesn’t mean it can’t be done...
http://www.enterprise-ireland.com/en/
http://www.envirocentre.ie/index.html
Becoming Lean
Becoming a Lean Service Company
First Steps to Green Competitiveness Guidebook
NSAI – SWIFT 11:2013 Driving Competitiveness using Lean
The project delivery specialists
LEAN PROJECT DELIVERY : AE PERSEPECTIVE
Mick Lynam, Director, PM Group
Kickstart Your
Lean Construction
Journey!64
Wednesday 25th March 2015
What is Lean?
• Systematic approach to delivering the highest quality, lowest
cost product or services with the shortest lead time through
the relentless elimination of waste
• You can’t eliminate the waste unless you know what it is
Lean doesn't mean poor quality
You can be lean and deliver excellent quality
Importance of the Start
66
CONCEPT / FEASABILITY FRONT END DESIGN DETAILED DESIGN PROCURE & CONTRACT CONSTRUCTION COMMISSIONING
CONCEPT DESIGN BASIS OF DESIGN DETAILED DESIGNPROCURE &
CONTRACTCONSTRUCTION COMMISSIONING
OPTIMAL INFLUENCE V COST OF CHANGE
BASIS OF DESIGNCONCEPT DESIGN
Ability to
Influence the
Project
Cost &
Schedule
Impact of
Change
Life Cycle - ISPE Good Practice Guide
STAGE 1
Feasibility
STAGE 2
Conceptual
Development
STAGE 3
Project Delivery
Planning
PROJECT INITIATION
STAGE 4
Design
STAGE 5
Implementation
STAGE 6
Close-out
PROJECT DELIVERY“Design
Production”
“Design
Development”
10%
effort
90%
effort
Pareto’s
Principle…
Life Cycle - ISPE Good Practice Guide
STAGE 1
Feasibility
STAGE 2
Conceptual
Development
STAGE 3
Project Delivery
Planning
PROJECT INITIATION
STAGE 4
Design
STAGE 5
Implementation
STAGE 6
Close-out
PROJECT DELIVERY
• Information flows
• Interdependencies
• Interfaces
• Decisions
• Assumptions (where information is not available in time)
Quality & Completeness of effort
in these ‘development’ phases
directly drives ‘level of waste’ in
subsequent ‘production’ phases
in project delivery
• Options
• Iterations
• Previous Lessons
• Optimisation
• Decisions
Where the Business Value resides…
Multiple Interfaces / Information Flows
70
Client
AE
Equip.
Vendor
CM
Sub Con.
C&Q
Internal Functional Groups
Internal Functional Groups
Internal Functional Groups
20 Vendors
Internal Functional Groups
Internal Functional Groups
20 S/C’s
LEAN PROJECT STRATEGY / CULTURE
e.g. 50 companies to align
LEAN PHILOSOPHY WITHIN EACH ORGANISATION?
e.g. maybe 20 Functional Groups [Depts] in each org.
Internal Functional Groups
Depends on your point of view!
71
Project
Initiation
Stakeholder
Meeting
Concept
DesignSOR
FED / BoD
Detailed
Design
Procurement
Construction
Commissioning
Verification /
Qualification
Operational Readiness
Handover to
Operations
Operational
Support
Achieve ROI
Client’s
Project
Manager
Designers
Consultant’s
Project
Manager
Equipment
Vendor
Constructors
Operational Readiness
Internal Systems
Purchase Orders
Contracts
Cash Flow
Stakeholder
Management
Supply Chain
Quality Assurance
Business Case
Governance
IT
Legal
Recruitment
Value Adding versus Waste
WORK PROCESSES
VALUE
ADDED
NON
VALUE ADDED
FLOW ELIMINATE
VALUE-STREAM MAPPING
• Eliminate the abnormal and the unnecessary non value added
• Reduce the non-value added but necessary
• Put the value-added processes in a natural flow sequence
ABNORMALNORMAL
NECESSARY UNNECESSARY
REDUCE
Isometric
Meetings Rework
Waste to be Avoided in Design
• Design Development e.g. • Poorly defined Business Case / Scope - drives change & rework
• No formal Business buy in - drives change & rework
• Misalignment on Value Drivers – TCO v Cap Cost - rework
• Lack of up front Definition – drives change & rework
• Poorly thought out Project Delivery Strategies – inefficiency
• Designing without knowing the Capital Budget – rework
• Design Production e.g.• Design Deliverables Produced – “because they are on the list”
• Starting Detailed Design too early - rework
• Ineffective Coordination, Poor Communication - rework
• Non Business Value Add Change - waste
• Misaligned Information Work Flows e.g. Vendor Data not available
• Design without Constructability – waste onsite
• Too many / Inefficient Meetings
• RFI ‘wars’
73
Improve Information Flow
74
Lean Project ‘characteristics’
• Well thought out….careful project development
• Team understand where the Business Value resides
• Full project life cycle thinking
• Strong Decision Making
• Procured to encourage / allow Collaboration
• Common LEAN Language & Understanding
• Interactive Team Planning
• Client-Design-Vendor-Constructor-CQ work flow alignment
• Remove Duplication & Avoid Gaps
• Culture of Challenging Waste
• Culture of Continuous Improvement
• Constant questioning ‘WHY?’
• OK to Challenge Change
• Designed to Cost
• Effective use of BIM
• Focus on smooth waste free Work & Information Flows
75
Project Opportunity v Single Company Opportunity
76
Multi Company
Project Opportunity
LEAN Project Delivery
Like Minded Partners
Collaboration
Shared Commercial Benefits
Single Company
Opportunity
LEAN Culture
Learning & Development
LEAN Processes
Increase % Value Add
Improve Competitiveness
Improve Bottom Line €
Individual Company benefits Industry benefits
these +
PM Group Delivery Platform Revamp
77
International
Office Network
Belgium
China
Czech Republic
India
Ireland
Poland
Russia
Saudi Arabia
Singapore
Slovakia
Turkey
United Kingdom
United States
Positive Experience with LEAN
• Project Development Philosophy – emphasis on the start
• ‘Schematic Design in a Day’
• Market Ready Design
• Design to Cost
• BIM – great enabler of communication & collaboration
• Modularisation
• Last Planner – both Design & Construction
• Intel Fab 10 Project – LEAN & Integrated Project Delivery [IPD]
78
PM Group Intranet & Delivery Platform Revamp
• 18 office network, 13 Countries
• Project Mgt
• Design
• Procurement
• Construction
• Commissioning
• Qualification
• Managed Services
• OTS
• Business Process & Intranet Revamp ongoing
• An opportunity to ‘lean’ our service delivery platforms
• Embracing the LCI initiative
79
Thank You
80
The project delivery specialists
KICKING OFF A LEAN CONSTRUCTION JOURNEY
(CLIENT’S PERSPECTIVE) – MERCK / MSD
Sarah Fitzgerald, MSD Ireland
Kickstart Your
Lean Construction
Journey!81
Wednesday 25th March 2015
LCI Ireland
Lean Project Delivery Approach
(Client’s perspective)
Merck/ MSD
25th Mar 2015
• Overview of Merck as a company - where we are in Ireland
• Merck’ s Project Delivery Approach
• Scoping Exercise – Use of Toyota tools and Competitive Scoping
• Take it offsite – Use of modular
• Right First Time - Use of mock-ups
• First/ Next Steps on our Journey
• What we will be looking for ?
Topics Covered
About Merck/ MSD
Our Vision/ Mission
We make a difference in the lives of people
globally through our innovative medicines,
vaccines, and consumer health and animal
products. We aspire to be the best
healthcare company in the world and are
dedicated to providing leading innovations
and solutions for tomorrow.
Quick Facts
The company is known as Merck
in the United States and Canada.
Everywhere else, we are known
as MSD.
Employees – Approx. 70 K
worldwide across 140 countries
Headquarters: Kenilworth New
Jersey
Businesses: Pharmaceuticals
Animal Health
Vaccines
2014 Revenue $ 42.2 billion
What We Stand For
►Excellence in science and healthcare
innovation, with an emphasis on addressing
unmet medical needs.
►Focus on patients and anticipating
customers ’needs.
►Commitment to expand access to our
medicines and vaccines, and to improve
global health
Swords - Manufacturing
Leopardstown – Human
Health. Sales & Marketing;
EMEA Shared Business
Services Centre
Animal Health, Sales &
Marketing
Rathdrum - Manufacturing
Carlow - Manufacturing
Ballydine - Manufacturing
Brinny - Manufacturing
MSD in Ireland
Five Manufacturing Sites cover different medical needs Biologics, Vaccines Sterile , API ,Pharm, Large
and Small Molecule Systems
Products made in Ireland : Oncology ,Rheumatoid arthritis Hepatitis C Women’s Health Products ,
Anaesthesiology and mental health
We employ over 2,200 in Ireland
We have invested over €2.2 B in Ireland in projects
Over past 5 years we have invested more than Eur 500 MM
86
• .
Merck’ s Project Delivery ApproachInitial Scoping Exercise
Use of Toyota tools and Competitive Scoping
Lean in Scope Defining Process
• Process Fit – uses lean tools from Toyota
• Define machine cycle times
• Identification of Waste - Value add / Non Value Add NVA times
• Helps to time and opportunities for cycle time improvements
• Waterfall Chart
A visual to display the impact of NVA Work on capacity
• Work Combination Table
Simple modeling tool to expose constraints, highlight conflicts and ID Labor
requirements
Competitive Scoping Model
Key Provisions:
Benchmark result to assure competitive advantage
Provides visibility to senior management/ sponsors – team choice
‘Meeting the True Business
Requirements’
Risk adjusted scope provides lowest initial cost scope with acceptable business risk
Financial and Competitive Decision Making tools used to evaluate lifecycle or strategic adds
Benchmark/
Target
Least cost Scope baseline meeting minimum functional requirements satisfies external regulatory and code requirements
Another company can not do it for less
Benchmark/
Target
Key
AssumptionsBusiness
Drivers
Start with clear definition of business drivers and key assumptions
Risk Adjusted
Scope
Proposed Project Scope
Strategic/ Pre-Investment
Adds
Lifecycle
Adds
Least Cost
Scope
Least Cost
Scoping
Risk Tolerance
Assessment
Proposed Scope
Development
89
Merck’ s Project Delivery Approach
Take it Offsite
Approaches Used Modular
Installation of first module – June Progress module installation – Oct
Full Modular - Carlow Ireland
- Designed in Sweden, made in Estonia
- 133 modules (40 ft containers 30 tonnes each)
- Designed, reviewed and delivery in sequence -
5 distinct blocks
- New benchmark for module setting – up to 8
modules a day beating previous record
- Autoclaves, washers installed during
fabrication
- Filling lines shipped direct to site
Finished Photos – Modular Building
Progress – Module installation Oct 2009
Hybrid Modular Construction
92
Worker safety improved – all work
done from floor or ladder, instead of
from lift
“Hybrid modular”:
Pre-fabricating congested areas of the
facility off site, as opposed to “full
modular”, which is fabricating the
entire facility off site
Modules fabricated in Charleston, SC.
25,000 labor hours removed from site,
equal to 50 workers for 12 weeks
• Project work area constrained
• Needed 150 construction workers
(at peak) to meet schedule; space
available for only 100
• On multiple Merck projects,
modular was selected based on
faster, safer, and more expensive
• Actual results for hybrid showed
faster, safer, and less expensive for
3 projects ( US)
Modular Construction – Use of Skids
Pictures show Clean & Black
Utility skids
- Skids tagged and labelled with
access platforms pre-installed
- Workshop environment –
improved quality& efficiencies
over jobsite
- Early Mechanical Completion
94
Merck’ s Project Delivery Approach
Right First Time
Use of Mock-ups
You can fix it now on the drafting board with an
eraser or you can fix it later on the construction
site with a sledge hammer
Use of Mock-ups During Design
Constructability/ Move in PlansUser Buy in/ Training Opportunity/ Safety ergonomics
Proof of Space for Areas
viewed as congested
Mock-ups during Construction
Aids Constructability – Equipment move in
Proof of Space for Areas viewed as congested
End User Buy –in on approach
Proves area as unworkable early prior to construction
Saves money
Provides training opportunity
Provides Common Understanding
Can be completed
Within Actual Area – using tape/ writing on walls
Outside the Area – shell space or vendor shop
Static or Dynamic
Not costly
Doesn’t have to take much time
Team Formation Benefits
Take Aways from Mock-ups
First/ Next Steps on our Journey
• Community of Practice for Lean/ project delivery established approx. 12 months
• Within last month re-organised our engineering group GES and lean leaders
appointed - 4 globally
• Leaders in process of mapping out the first 100 days
• Looking at lean education for organisation
• Benchmarking with others
• Identified Pilot Projects that are in charter/ early stage design phase – different
sizes, business units geographic location.
• Develop clear detailed business case.
• Use Target Value Design
• Lean pull based design and execution
• Looking to involve subcontractors earlier in design process
• Continue/ Build on what we do well
What we will be looking for ?
• Partners interested in moving forward lean delivery and who want to challenge
status quo
• Knowledge of lean and willingness to implement will
be seen as competitive advantage
Any Questions????
Email : [email protected]
The project delivery specialists
PANEL DISCUSSION
Kickstart Your
Lean Construction
Journey!99
Wednesday 25th March 2015
Q&A
Does a company start by
applying some of the Lean
Tools on a sample project or
attempt to change the
company culture?
100
Q&A
Where does a small company
start and where are the main
sources of information?
101
Q&A
How and where does BIM fit
into Lean Construction?
102
Next LCI Community of Practice
“Going from Good to Great”
103
“A great organisation is one that makes a distinctive impact and deliverssuperior performance over a long period of time”
[Jim Collins]
Sustaining Lean in an organisation
Sponsored by DPS Ltd
Date: Wed, 24 June 2015Time: 6:30pm
Location: Dublin
Thank You
&
Safe Home
104