LEAN IS MORE
Transcript of LEAN IS MORE
S a m S p a t a , A I AO w n e r, P r i n c i p a lM e t h o d L e a n
1 0 A p r i l 2 0 1 9
L E A N I S M O R E
Spr ing Conference
Newton, MassachusettsTools and Techniques for Effective
Project Management
This is an AIA approved course and may not be reproduced without permission of Method Lean
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Bid Index
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Reduce + Control Cost50.00%
T R U S T
is the foundation of design and
construction for the twenty-first century…”
“…building on
“The Commercial Real Estate Revolution”
T R A N S P A R E N C Y
R e l i a b i l i t y
C o m p e t e n c e
F a m i l i a r i t y
I n t e g r i t y
Who do You Trust?Designer• Cost• Scope• Timeliness• Comprehensive• Productivity• Digital Workflows
Constructor• Safety• Delays• Coordination• Change Orders• Stress• Demographics
Owner• Late• Unrealistic• Value Proposition
Performance
L e a n
S y s t e mC u l t u r e
…a system to deliver capital projects with reliable cost, schedule and value performance.
…a culture of mindfulness toward value, waste, and flow; built upon trust.
T w i c e a s l i k e l y t o b e o n b u d g e t
T h r e e t i m e s a s l i k e l y t o b e o n s c h e d u l e
Dodge Analytics, 2016
Experiment
When Did You Lose the Money?
Problems created here…
…become visible here
Decision Dollars | Person | Day
Time
Dol
lars
Com
mitt
ed
“Nothing in Lean makes sense, except in light of creating Value.”
R u l e # 2 0
T h e L e a n P r o g r e s s i o n ©
Habit
Tool
Process
Vision
Theory
Informal norms, re inforc ing Culture
Device support ing Process
Success Strategies
Project Del ivery as i t Should Be
Knowledge organized for Act ion
+∆Habit
Tool
$Process
Vision
Theory
The Lean Progress ion ©
+∆Habit
Tool
$Process
Vision
Theory
Constants
Waste Value Flow
Coordinated Enterprise System
CoS TVD CBASBDLPS
+∆Habit
Tool
$Process
Vision
Theory
Project Delivery $
+∆Habit
Tool
$How
Vision
Theory
Habit
Tool
Process
Vision
Theory
Integr ated Pr o ject D e l i ver y : Co r po r ate Cam pus CUB
Plus Delta to continuously improve meetings
A3 pre-fabrication solutions (‘zero’ ITP)
Target Value Design; deciding-to-budget
Enterprise via Integrated Form of Agreement
Flow of materials, labor and information
$12 MILLION SAVED
Market cost $77mmTarget Cost $70mmActual Cost $60mm
Total Cost $65mm
50/50 share of $10mm cost savings
+∆
Habit
Tool
Process
Vision
Theory
Pr ivate Secto r Ow ner / D eve lo per / Manager
Yellow Card redirected approach
Big Room for workshop effectiveness
Pull-Planning as a collaboration accelerator
System supports organizational ‘take-off’
Value as foundation for BHAG – 30% less cost
BHAG 30% LOWER COST
Reduce construction cost with Lean.
Adapt Lean to perpetual on-boarding.
Enable portfolio management.
Habit
Tool
Process
Vision
Theory
Publ i c Secto r Mul t ip le Pr im e D es ign- B id -B u i ld
Reflection aligned perspectives
Gemba go-to-the-place as a team
Conditions of Satisfaction scope + process
System change to program management
Value drives waste reduction, flow efficiency
LESS COSTMORE VALUE
Reduce Change Orders from 10%; schedule
from 1,000 days.
Increase client satisfaction from 75%
Program Development Study
To guide performance.
$
Habit
Tool
Process
Vision
Theory
Ins t i tut io na l C l ient : B ehav io r a l H ea l th
Yellow Card challenge problems, not people
Big Room User + CRE alignment
Pull Plan ‘collaboration follows coordination’
Enterprise ‘win-win-win’ attitude building
Flow of information; services; approvals
OPERATIONALBUSINESS CASE
Clinical User adapting processes for support
by available real estate
ConditionsOf Satisfaction built
alignment among User, CRE, CM, A+E, PM to
build the Business Case
Theory & Vision
F o u n d a t i o n f o r P e r f o r m a n c e
Mindshift
1. Inspect the Work2. Transfer Risk3. Reduce Cost4. Push the Work Out5. Whatever It Takes6. Deliver the Contract
- Method Lean
1. Respect the Individual2. Remove Waste3. Increase Value4. Focus on Process + Flow5. Optimize the Whole6. Continuous Improvement
- Lean Construction Institute
Robust Lean
+∆Habit
Tool
$Process
Vision
TheoryWaste Value Flow
Coordinated Enterprise System
Value
“A project is a means to a means to an end.”- Prof Peter Barrett, Salford University
Owners don’t want to do projects.
Owners want to create value.
Waste
Design1. Human Potential2. Errors + Omissions3. Defensive Details4. Approvals5. BIM Over-Processing6. Resource Planning7. Waiting for Info8. Lost Knowledge
Over BurdenPushing systems and people beyond limits, causing breakdowns and defects
UnEvennessDemand fluctuation causing workflow spikes and troughs
Construction1. Human Potential2. Non-Conformance3. Defensive RFI’s4. Punchlists5. Digital Workflows6. eMail, Pings, Meets7. Waiting for People8. Lost People (Safety)
M a n u fa c t u r i n g
MaterialInformationPe o p l e
C o n s t r u c t i o n
PeopleMaterialI n fo r m a t i o n
D e s i g n
InformationPeople
M a te r i a l
Flow
High VolumeHigh ThroughputLow Variation
Low VolumeLow Throughput
High Variation
C o o r d i n a t e dI m p e c c a b l eR e l i a b l e
E n t e r p r i s eA l i g n e d F i n a n c i a l sB e s t - f o r - P r o j e c t D e c i s i o n M a k i n g
S y s t e mC o l l a b o r a t i v e P r o d u c t i v i t yV a l u e - D r i v e n I n n o v a t i o n
Vision
Why Bother with Theory + Vision?
• System– Can’t improve what you don’t understand
• Variation– Can’t separate individual performance from the system
• Knowledge– “Practice makes permanent”
• Culture– Can’t improve a system that won’t meet human needs
W. Edwards De m ing “ Pro fo und Knowle dge ”
T r u s t
+∆Habit
Tool
$Process
Vision
Theory
Transparency
+∆Habit
Tool
Process
Vis ion
Theory
Familiarity
CompetenceHabit
Tool
Process
Vis ion
Theory
ReliabilityHabit
Tool
Process
Vis ion
Theory
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A Process, A Tool
C o n d i t i o n s o f S a t i s f a c t i o nA 3 T h i n k i n g
How do you lose money?
• Productivity is too Low– profit margins are thin, digital workflows complex
• Rework is Excessive– scope ‘creeps’ during design, documents incomplete
• Resource Planning is Reactive– work is rushed, professional growth a secondary concern
• Satisfaction is too Low– stakeholder value not fully achieved, staff disappointed
Value $
Dr i ve
Lean
Function
Form
Cost
Schedule
Process
Value Proposition
Needs(metrics)
Concepts(markers) Facts Goals
Attributes
Factors
Why is the project
necessary?
For whom?
What quantitative items must
you have?
What qualitative
ideas do you want to
see?
What do we know?
How do we achieve
success?
For whom?
Lean
Function
Form
Cost
Schedule
Process
Value Proposition
Needs(metrics)
Concepts(markers) Facts Goals
Attributes
Factors
Why is the project
necessary?
For whom?
What quantitative items must
you have?
What qualitative
ideas do you want to
see?
What do we know?
How do we achieve
success?
For whom?
Pu l l
Materials Science R+D
Campus Collaboration Visibility Frequent Customer Walk-Thru’s Brand Forward
ROI Explain NJ $ to DEU Net : Gross Energy Usage Index Increase Market Share
No Interruptions Swing Space No Double Moves Lease Admin Space 30 Month Schedule
R+D Infrastructure Upgrade Innovation War for Talent Recruit + Retain
Efficiency Change Management
Continuous Improvement EHS + Comfort Adaptable
Workflows
Function
Form
Cost
Schedule
Process
Value Proposition Needs Concepts Facts Goals
Caution
Function
Form
Cost
Schedule
Process
Value Proposition
Needs(metrics)
Concepts(markers) Facts Goals
C o m m u n i t y
Control STR challengeMaintain Community
Function
Form
Cost
Schedule
Process
Value PropositionsDeveloper DesignerPosition as Market Leader for Clustered, Sustainable Development
Test planning theoriesGrow market sector
Maintain dominant market position within Esopus County
ResidentialSustainable
Instagram, Social MediaPublic Relations
Architectural AwardsEngineering Innovations
Repetitive ElementsCoordinated Systems
Stimulate Hamlet’s Main Street businesses
Maximize Sales of Premium Units
Eliminate ReworkReduce Change OrdersReduce Submittals
Minimize rock removalMinimize well pointing
First 10 homes must be occupied within 16 months
Complete construction in 30 months
No Approval StoppagesContinuous OnBoarding as team grows
2 Winter Seasons, max
CoopetitionDevelopers Compete; Winner Collaborates
Integrate design & constructionSave cost & timeLean GMP
Maximize Design Assist & Performance Specifications
Streamlined PermittingAccelerate Developer Decision-Making
Community Constructor
Low MaintenanceLow Energy Use
Near Parking
Below Market Pricing
Within 1 year of Contract
OnlineRemote Monitoring
Purchaser
Value $
Early Alignment
Transparency
Clarity
Pull
What does it cost when…
Standards are not used?
Knowledge is lost, or hoarded?
Solutions are not followed thru?
The team solves the wrong problem?
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme #A3 Thinking
Strategic Context
Immediate Situation
Radical Drivers What Measures Progress Along the Way?
PlanMetricsAccountabilitySchedule
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme
MeasureMap Out the Current Process
ImproveImplement and Verify the Solution
DefineDefine the Problem
AnalyzeIdentify the Cause of the Problem
ControlMaintain the Solution
A3 | DMAIC
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme This works because…
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme Hardware Error & Omiss ion
Health Care hardware is a long lead and expensive item. It’s desirable to avoid design mistakes that cause Change Orders.
Hardware is documented multiple times: written specifications; door schedules; and as BIM objects.
Duplicates are liable to flow error. Value Stream Analysis suggests we’re focused on the wrong ‘customer’.
Track labor hours required to fulfill hardware requirementsKPI – Change Orders for Hardware
Interview Hardware Trade Partners (the actual customers)Determine minimum information the require for bidding, fabrication and installationSelect a single optimum process• Place all Hardware data in the BIM:
specification; locations; types and quantities.
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme Resource Planning
People must be utilized on projects for the business model to work.
While demand in general can be estimated, precise need is unpredictable, variable and dependent upon external factors.
Improved People workflow must achieve 3 goals:1. Resource Optimization2. Positive Client Perception3. Professional Growth
• What do we control?• How can our value stream of suppliers and trade partners be of
assistance?• Who “owns” schedule float?• Can we reset client expectations?• Is item #3 – Root Cause Analysis – comprehensive?• Is the current business model the only solution?• Do we move people to meet demand, or can we change
demand to free up people?
A recurring, industry-wide problem is the gap between demand for resources (people) and availability. Projects do not proceed as planned. Yet clients expect a promised team will always be available, even though individuals must be kept utilized. Conflicts in resource planning may harm the client relationship.
The critical workflow is People, the providers of service.• Demand variation is met by moving People to the work, often
with unintended consequences.• Client expectations cause some People to be overburdened,
others underburdened, for long periods.
First, implement the IT solution (enterprise resource planning software), then re-evaluate.
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme Rapid Team-Bui ld ing
Institutional design practice moving to commercial; from leisurely time scale to aggressive.
Projects begin with loose hierarchy; leadership emerges over years through a ‘contest of ideas’.
Fear. We will lose our ‘soul’ if we organize. Design excellence is not a formula. We are purpose-driven…
Team Leadership Active Engagement
Attitudes are caught, not taught…
Adapt Lean tools, processes and habits with a focus on:• Transparency• Clarity• Structure• Conditional Promising Conditions of Satisfaction; A3 Thinking Attitude Surveys; Pull-Planning
4 Implementation Plan + Targets: Who, What, When, How?1 Background
2 Current Condition
3 Root Cause Analysis 5 Follow-Up + Metrics: Progress + Adjustments?
Theme Improve Pro ject Del ivery
Data mining of project performance revealed:
• > 1,000 days for a $10mm project• < 75% client agency satisfaction• 10% change orders• 60% client agency creep
Begin Lean implementation with a Pilot Project.
Change how design and construction teams are selected and set new expectations for behavior.
Produce a Program Development Study that aligns Bureaus of Pre-Construction and Construction with the Client Agency; issue as part of Design and Construction RFP’s.
Pave the way for legislative approval of revised contractual requirements.
Commonwealth has established Office of Performance Excellence; capital project delivery methods have not kept pace.
Pre-Construction Bureau talent have ‘drifted’ from role as Program Managers toward that of Technical Reviewers.
Joint project management, Pre-Construction Bureau and Client Agency.
Habit
Tool
Process
Vis ion
Theory
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Design
Every value-add process is a transformation of either material, people, or information
Transforming a value proposition into a built environment is a multi-stage process
N e e d s
C o n c e p t s I n t e n t
B i d s
C o n st r u c tF i t - fo r - U s e
FirstDesigners very good.But… Constructors must participate…
SecondDesigners & Constructors are both improving.But… independently…
ThirdConstructors very good. But… Designers must participate…
Design BIMAnalytics
Problem SolvingExploration & Understanding
Visualization & Informed Consent
Design Intent BIMScope & Quality
Approval GatewaysBidding & Negotiation
Coordination & De-Clashing
Build BIMPre-FabricationCNC FabricationQuantity Take-OffsModularization (Batching)
Levels of Detail
Role Integrity
Customers
Handoffs
Reflection
Lean Is More1. The architects role in Lean and why
owners and constructors are adopting.
2. Learn how Lean quickstarts team-building to deliver projects 2x as likely on budget; 3x as likely on schedule.
3. Learn how the fundamentals of Waste, Value and Flow increase reliability, profit and satisfaction.
4. Discover the mindshift from Robust to Lean thinking that drives practice improvement.
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It’s Your Lean
• Digital• Analog• Jargon Free• Non-Proprietary• You Have the Materials at Hand
– Big Room– Open Mind– Data Visualization
How to Begin
H a b i t
To o l
P r o c e s s
V i s i o n
T h e o r y
Set Based DesignChoosing by Advantages
SolvingDeciding
3 Achievement
H a b i t
To o l
P r o c e s s
V i s i o n
T h e o r y
Conditions of Satisfaction
Goal-Setting
1 Awareness
Last Planner SystemTarget Value Design
H a b i t
To o l
P r o c e s s
V i s i o n
T h e o r y
SchedulingBudgeting
2 Action
Why?
1. Increase Productivity– Less Rework | E+O | Value Stream | Flow
2. Increase Reliability– On Time, On Budget, Fit-for-Use
3. Increase Value– Design to Prevent Error, Invent Value
4. Increase Trust– Transparency, Familiarity, Competence, Reliability
Feedback
U n i v e r s a l H a b i t
Plus | Delta
+What was helpful so far and should continue to be included?
∆What would you add or subtract, to make this more helpful?
THANK YOU
t o d o w n l o a d a c o p y o f t h i s p r e s e n t a t i o n v i s i tw w w. m e t h o d l e a n . c o m