Kickstart Your Lean Construction...

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The project delivery specialists LEAN PROJECT DELIVERY KICKSTART YOUR LEAN CONSTRUCTION JOURNEY Kickstart Your Lean Construction Journey! 1 Wednesday 25 th March 2015

Transcript of Kickstart Your Lean Construction...

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The project delivery specialists

LEAN PROJECT DELIVERY –

KICKSTART YOUR LEAN CONSTRUCTION JOURNEY

Kickstart Your

Lean Construction

Journey!1

Wednesday 25th March 2015

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Michael Kerr

PM Group

Group Construction Services QA/QC Manager

Landline: 021 452 2852

Email: [email protected]

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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

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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

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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

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Ireland Community of Practice (CoP)

•1. Why Change, Why did we set up LCI -

Ireland CoP

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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 -

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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.

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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)

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Ireland Community of Practice (CoP)

Why –“The Benefits”

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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

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Ireland Community of Practice (CoP)

•2. CoP Structure & Behaviour/Purpose

& Goals 2015

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Ireland Community of Practice (CoP)

Contractor

March 2014

LCI CoP Formed

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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 )

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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

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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 -

[email protected]

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

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Ireland Community of Practice (CoP)

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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.

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Ireland Community of Practice (CoP)

•3. The LCI Ireland CoP Journey – so

Far

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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 ………….

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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

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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

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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

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Ireland Community of Practice (CoP)

http://leanconstructionireland.org/wp/

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Ireland Community of Practice (CoP)

Takeaway

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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 “

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Ireland Community of Practice (CoP)

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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

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Presentation Outline

• Applying Lean through all stages of the project cycle

• Introducing the Lean Project Pathway

• Making-it-happen - Elements for success

• Take-aways

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Lean = Delivering Better Value

Project Costs

Market Price

Adding Best Value at Minimum Cost

Cost

Profit

V-A

NVA

WASTE

Time

Future- Price Down?

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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

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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?

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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.

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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

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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

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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

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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

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A Lean View?

• A good squad

• Team work

• Practiced

• Flow

• Visibility

• Control

• Continuous improvement

• Achieving goals!

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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

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“The significant

problems we have

cannot be solved at

the same level of

thinking with which

we created them”.

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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

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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%

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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

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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!

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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

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Thank you …

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The project delivery specialists

KEYNOTE SPEECH 2:

ENTERPRISE IRELAND LEAN BUSINESS OFFER

Richard Keegan

Kickstart Your

Lean Construction

Journey!48

Wednesday 25th March 2015

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Why is the world going Lean?

Because it works!!

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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

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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

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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

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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

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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?

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QUICKER

BETTER

CHEAPER.........TOGETHER

Lean is doing what you do….

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Some Lean Principles….

• Time

• Money

• Effort

Must want to compete…..

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Rules

1. Fairness

2. Firmness

3. Consistency

4. Look

5. See

6. Understand

7. Think

8. Do

Dealing with People

Dealing with Processes

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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

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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…..

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NOT just on the Production Floor!

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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%

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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

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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

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The project delivery specialists

LEAN PROJECT DELIVERY : AE PERSEPECTIVE

Mick Lynam, Director, PM Group

Kickstart Your

Lean Construction

Journey!64

Wednesday 25th March 2015

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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

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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

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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…

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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

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Where the Business Value resides…

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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

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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

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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

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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

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Improve Information Flow

74

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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

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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 +

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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

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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

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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

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Thank You

80

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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

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LCI Ireland

Lean Project Delivery Approach

(Client’s perspective)

Merck/ MSD

25th Mar 2015

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• 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

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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

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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

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86

• .

Merck’ s Project Delivery ApproachInitial Scoping Exercise

Use of Toyota tools and Competitive Scoping

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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

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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

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89

Merck’ s Project Delivery Approach

Take it Offsite

Approaches Used Modular

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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

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Finished Photos – Modular Building

Progress – Module installation Oct 2009

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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)

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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

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94

Merck’ s Project Delivery Approach

Right First Time

Use of Mock-ups

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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

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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

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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

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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]

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The project delivery specialists

PANEL DISCUSSION

Kickstart Your

Lean Construction

Journey!99

Wednesday 25th March 2015

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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

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Q&A

Where does a small company

start and where are the main

sources of information?

101

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Q&A

How and where does BIM fit

into Lean Construction?

102

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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

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Thank You

&

Safe Home

104