Linbeck Lean Project Delivery

©Linbeck/Jose Solis - Proprietary & Confidential Slide 2

Introduction Who I am not?

I am not a Lean consultant I have nothing to sell and I am not being paid to be here I am not an academic with a hypothesis to prove

Who am I? President & CEO for Linbeck Group LLC I am a builder; have never done anything else I have a passion for the construction industry and finding

ways to improve it


Lean Definition

What is Lean Construction?

“Lean Construction is a set of ideas, practiced by individuals

in the construction industry, based in the holistic pursuit of

continuous improvements aimed at minimizing costs and

maximizing value to clients in all dimensions of the built and

natural environment: planning, design, construction,

activation, operations, maintenance, salvaging, and recycling.”


Why?

Why did Linbeck start doing this more than 10 years ago?Competitive Reasons

Why should others do it? To survive!


Don’t We Do This Already?

Some say yes – Life is easy; they already have all the answers.

Those who say no - Should they feel compelled to do something about it?


Yes or No? Not according to Government Statistics


Industry Reliability Model

50%

25%

10%

90%

75%

Timestart completion

Construction Industry Norm

Lost OpportunityIndustry Wastes 40-50%

Relia

bilit

y


Construction Professional?

Do you think the best and brightest want to work this way?

Sounds like a career of endless issues and unnecessary risk.

Are you considered a professional because you survived it?


Value/Waste Relation

VALUE

WASTE

PREDICTABILITY

VARIABILITY


Production: · Under · Over · Untimely

Performance : · Non · Under · Over · Untimely

Change:· Scope · Conditions · Errors · External

Discrete Waste

Systemic Waste

Capital Fa c ility Procurement and

Production System s

Synergistic Waste (Affecting stockholders)

Owner

Designers

Contractor

Trade Partners

Waste Types: Discrete, Synergistic, Systemic

25

Discrete Waste (+) Synergistic Waste (x)(Affecting Stockholders)

Systemic Waste (xn)

• Project Delivery System – Contracts

• Systemic nature of the industry• Project Breakdown • Litigation (shift of value)• Devalued Market• National Debt


Lean Principles

Lean Thinking seeks to eliminate waste in both schedule and budget, so projects are delivered faster - and more cost-effectively.

The continuous application of the four steps above

Define Client’s Value

Map Value Stream

Achieve Value Flow

Respond to Pull

Seek Perfection

Actively understanding what is valuable to our clients in terms of budget, function, aesthetics, standards, and time

Identifying the most effective sequence of activities to deliver the value defined by the client

Eliminating unnecessary procedures to allow more work to be scheduled and executed

Doing work only when needed - when it triggers downstream tasks that will advance the

overall process


Lean Operating System


Quality Assurance


First Lean Principle

Defining Value – What is valuable to your customer?


Cook Children’s Mission

Cook Children’s Health Care System will improve the health of every child in our region through the prevention and treatment of illness, disease and injury


Reliability - Capital Cost Budgeting

Speed – Time to Market

Uptime - Patient Care Areas

Customer Satisfaction - Maximizing Positive Patient Outcomes

Controlling Infection – Safe Environment for Healthcare

Cost – Leveraging Market Knowledge, Community Reputation &

Fairness

Quality - Focusing on Long Term Facility Management,

Operations & Maintenance at Lower Cost

Community Service – Support CCMC community mission

First Principle – Defining Value to CCMC


Fee @ Risk to Meet Owner Goals

Team members collaborate to develop goals and measurement systems to make up a “balanced scorecard” with which the outcomes of the project are assessed.

• Removes the perceived conflict of interest in determining the Guaranteed Maximum Cost (GMP) of the project

• Prevents focusing on cost only, since the Client also has safety, quality, schedule, and functionality goals

• Decreases motivation to argue over minor changes, since there is no economic interest in increasing the contract amount


Second Principle – Map the Value Stream How we create value by removing discrete waste

Production

• Under production• Over production• Untimely

production

Performance

• Non performance• Under performance• Over performance• Untimely

performance

Change

• Scope changes• Change in

conditions• Errors• External changes

Value Stream


The right process will produce the right results Continuously experiment and improve the process Define Value, Map Value Stream Engages stakeholders

Lean Principles


Value Stream of Capital Project Delivery

Updated based on decisions in Feb 08

See Definition VS for Projects

See April 08 Board Package

4/15/18

See Feb 08 Board Package Recap


Linbeck Sponsored Insured Program (LSIP)


Project Scope WasteTypical Bridge Work Structure

Owner Identify BridgeCriteria

Architect / Engineer

Builder

Design Bridge Components

Bid Erection and Enclosure

Manage Operations Disruption

Award Trade Contracts

Manage Patient Dissatisfaction

Manage Inefficient Work

Subcontractor Quote Fabricate Bridge Steel

Close Entrance to Emergency Room

Close Street

Erect Bridge

Pieces 14 days

Open One-Half

Street

Enclose One-HalfBridge14 Days

Close One-Half Street

EncloseLast One-

HalfBridge 14 Days

Open Street and

EmergencyEntrance after

42 Days

LegendContractual Relationship

Closing ER entrance for 42 days


Linbeck’s Lean Process Keeps ER Entrance Open

LegendContractual Relationship

Architect / Engineer

Builder

Subcontractor

ProvideConstructability &

Manage ClientExpectations

OwnerIdentifies Process

Expectations (Value)

Minimize Disruption Of Bridge

Construction

Identify BridgeCriteria

Close Emergency

Room EntranceOne-Half Day

Determine DesignOptions to

Accommodate LessIntrusive Bridge Plan

Design TempSupports and

LiftingRequirements

Bid Assembled On Ground

Bridge Erection

QuoteFabricate

Steel

Award Trade Contracts

Drill Temp Piers

7 Days

Erect Bridge on Ground 7

Days

Assemble Enclosure on Ground

14 DaysClose Street

Erect Bridge

One-Half Day

Open Street and Emergency

afterOne-Half Day

Design BridgeComponents

Closing ER entrance for half day


Third Principle – Achieving Flow

Achieve flow by removing synergistic waste creating reliability with organization that addresses product needs

Relationships

• Owner• Designers• Contractor• Trade Partners

Flow


Integrated Project Team

Specialty Consultant

Integrated Project TeamUtilizing TeamBuild® Approach

Owner Direct Contractor

CMR – Linbeck

Engineer

Architects

FF&E Vendors

Specialty Consultant

CCMCOwner

LinbeckProject

Manager

INTEGRATION


Organizational Alignment


Owner

Linbeck PM @ Risk

Architect & Engineer

Core Specialty

Contractors

Integrated Project Team

INTEGRATION


Create the right “flow” Involve the right people at the right time Allocation of responsibility and authority Create clarity

Map out the process and the value stream “WHAT” “HOW”

Implementation of BIM in the LOS


Fast

BIM Tools

EarlyProcurement

Communicating via ModelQualifying Trades

GMP at SD

Fast

BIM Tools

EarlyProcurement

Communicating via Model

Qualifying Trades

GMP at SD

Lean BIM Tools


Fourth Principle - Responding to Pull

Respond to pull by doing work at the last responsible moment

Use pull driven approach Define what is needed Create what is defined Not more Execute flawlessly


Using Tools – Pull Schedule


Responding to PullPull Built-Up AHU’s - Design Through Construction

Below Grade Access “Last Opportunity”

“Stored” in Location in Assembled Sections-Protected

Shipped in “Larger” Sections “Shrink Wrapped”


Percent Plan Complete Chart – Seeking Perfection

Baylor College of Medicine

2/10/1998

2/17/1998

2/24/1998

3/3/1998

3/10/1998

3/17/1998

3/24/1998

3/31/1998

4/7/1998

4/14/1998

4/21/1998

4/28/1998

5/12/1998

5/19/1998

5/26/1998

6/2/1998

6/9/1998

6/16/1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

53%

63%56% 56%

77%71% 73%

83%90%

85% 86% 84% 85%90% 88% 88% 90% 92%

PERCENT PLAN COMPLETE

PPC

P

erce

nt P

lan

Com

plet

e


Cumulative Root CausesTrend of Unsatisfied Scheduled Items

0

1

2

3

4

5

6

7

8

9

10

2/11/02

2/18/02

2/25/02

3/4/02

3/11/02

3/18/02

3/25/02

4/1/02

4/8/02

4/15/02

4/22/02

4/29/02

5/6/02

5/13/02

5/20/02

5/27/02

6/3/02

6/10/02

6/17/02

Date

Num

ber

of W

eekl

y U

nsat

isfie

d It

ems

Sched. AccuracyReworkEqpt. Del.Make ReadyMat'l Del.Outstanding SubmittalsOutstanding RFI'sManpower

Trend of Unsatisfied Schedule Items


Using Tools – Last Planner

50%

25%

10%

90%

75%



Saves Time (10-20%)Saves $ (3-10%)

When Reliability Increases

Relia

bilit

y

LOS


Where Are We Going? – Remove Systemic WasteWith an ever-changing economy

1900

Informal“favoritism”

Design Bid Build

2000

Under-Bid Litigation

Design Build/CMAR

2010

Under Cut Fees/Market

Value

Lean/Integrated Contract

Future

Problem?

Solution?

Problem:

Solution:


Systemic Waste

Project Delivery System – Contracts Systemic nature of industry Project breakdown Litigation (shift of value) Overcome Devalued Market Overcome National debt

Remove with IPD agreements/relationships


Production: · Under · Over · Untimely

Performance : · Non · Under · Over · Untimely

Change:· Scope · Conditions · Errors · External

Discrete Waste

Systemic Waste

Capital Fa c ility Procurement and

Production System s

Synergistic Waste (Affecting stockholders)

Owner

Designers

Contractor

Trade Partners

Waste Types: Discrete, Synergistic, Systemic

25

Discrete Waste (+) Synergistic Waste (x)(Affecting Stockholders)

Systemic Waste (xn)

• Project Delivery System – Contracts• Systemic nature of the industry• Project Breakdown • Litigation (shift of value)• Devalued Market• National Debt


Integrated Project Delivery

50%

25%

10%

90%

75%



Saves Time (10-20%)Saves $ (3-10%)

When Reliability Increases

Relia

bilit

y

LOS

IPD


Questions?

Linbeck Lean Project Delivery

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