Warwick MSc - Construction Management Module 2015 B Y M AI N GUYEN By Mai Nguyen London Bridge...

Warwick MSc - Construction Management Module 2015BY MAI NGUYEN

By Mai NguyenLondon Bridge Associates Ltd


1. History of Lean

2. Principles of Lean

3. What is Lean Construction?

4. Waste in Construction

5. Lean Maturity Model

6. Case Study: Highway Agency


Here is Edward Bear coming down stairs now, bump, bump, bump, 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.

A.A. Milne


(Ref: Ian Graham – Prism Consultancy)

1960 - 1980TQC

TQM

1990’s

ISO 9000

Best Value

EFQM

BPR

BalancedScorecard

SixSigma

LeanThinking

1980’s

Mid1990’s

Mid 2000’s

2000’s

CBP


Toyota Motor Company – Birthplace of

Lean

Toyota Production System – Lean

Production “customers to stand in the frontline of the

marketplace and “pull” the goods they need, in the amount and at the time they need them.” (Taiichi Ohno - Toyota’s chief production engineer)


“it uses less of everything compared with mass production – half the human effort in the factory, half the manufacturing space,

half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces

a greater and ever growing variety of products”.

(Womack, et. al (1990) - “The Machine That Change the World”)


• Define value from the perspective of the end customer

• Provide what the customers want, when they want it – understand demand

• Work on the processes that lead to results – rather than the results themselves

• Identify the entire Value Stream and eliminate waste

• Make the remaining value steps flow

• Pursue perfection


PEOPLE PROCESS

MINIMISING WASTE

CUSTOMERVALUE

“You can adopt as many Lean Techniques as you want, but you need to work in a Lean Environment”.


• 1990: Term “lean” was coined• 1992: First research “Application of the

new production philosophy to construction” by Lauri Koskela

• 1993: First practical application “Ballard’s Last Planner”

• 1993: International Group of Lean Construction founded (http://cic.vtt.fi/lean/)

• 1997: Lean Construction Institute (LCI-US http://www.leanconstruction.org)

• 2005: Lean Construction Institute (LCI-UK http://www.leanconstruction.org/uk/)


Lean Construction is the adaptation of Lean Thinking

into Construction. It is a strategy that is customer

focused and people centric.


• Waste elimination,• Value creation, • Continuous improvement, • Innovation, • People development, • Collaborative working, • building long term relationships for world

class performance.


Lean construction is not about

trimming everything to the bone

and squeezing more out of what is

left.

It is about working smarter, not

harder.


Cost reduction

VisibleCosts

HiddenCosts

Cost saving(short term)

Examples:StaffingTransportTrainingIT renewalsetc

Examples:WastesMoraleReputationGoodwilletc

VisibleCosts

HiddenCosts


Hidden Costs

More Cost saving(long term)

Examples:StaffingTransportTrainingIT renewalsetc

Examples:WastesMoraleReputationGoodwill

Wastes

MoraleReputationGoodwill

Make Waste become visible

VisibleCosts

Hidden Costs

VisibleCosts

VisibleCosts

Hidden Costs


15

Waste:

All unnecessary work

ELIMINATE !

Value Adding:

Any work that changes the nature, shape or

characteristics of the product, in line with

customer requirements(Maximise)

Non Value Adding:

Any work carried out,which is necessary under

current conditions but does not increase product value

((Minimise)

Warwick MSc - Construction Management Module 2015BY MAI NGUYEN16

Waste!

Idle Time Defects/Rework

Worker Motion

Inventory

Over-production

Over-processing

Transportation

Skills Misuse

Warwick MSc - Construction Management Module 2015BY MAI NGUYEN17

To raise the ratio of Value Added operations to Non-value Added and Waste

Working Time

Minimise

More resources available for other activities

WASTE NVA VA

Eliminate


•Waste is not defined•Reacting to large examples•Leads to muddled efforts•Reactive Improvement

•Waste is visible•Identifying many small opportunities•Leads to large overall change•Continuous improvement

A shift in

mindset

Non-lean organisationLean organisation


• Discussion

• Both focus on providing value for the customer

• GCM does not necessarily have to use less of everything to create value


Beginning Lean

INITIAL1

World-class Status

Lean at all disciplines

Lean Becoming

Visible

INITIALLevel 1

IMPLICITLevel 2

EXPLICITLevel 3

MANAGEDLevel 4

OPTIMIZINGLevel 5

Lean Maturity Model (Mai Nguyen, 2004)


• A Culture shift is needed to make it work

• The people in the processes have to be

allowed to work on, propose and implement

improvements

• It is not easy to turn waste reduction into

money saved

• Can seem like a threat to peoples’ jobs


• Executive Agency of Department for Transport.• 3600 staff across 8 offices, 8 traffic control centres and 29 outstations across England.• Operate, maintain and improve 7000 km Strategic Motorway and Trunk Road Network in England.(£100bn asset)• Network carries 4 million vehs/day• Accounts for 3% of England’s road network but carries 1/3 of all traffic & 2/3rds LGVs


• The Highways Agency is spending £2bn per annum operating, maintaining, renewing and enhancing the Strategic Road Network• 90% spend is with suppliers.• Of that 80% spend is with Tiers 2 & 3 suppliers (sub contract)• Important to achieve “better for less” and reduce waste.


Squeezing time and cost out of HA’s processes while delivering improved value to

the customers


• Established in 2009• “to lead, support and enable continuous performance improvement across HA and the HA supply chain.”• “to reduce the cost of delivering HA projects and maintenance while at the same time improving the quality of the product delivered and improving delivery performance”.


Highways Agency Lean Maturity Assessment Toolkit

Allows HA to measure movement toward a continuous improvement culture

The HA Lean maturity toolkit has two purposes: one for self assessment and one for structured audit by the Highways Agency.


The Assessment toolkit covers: Levels 0-4 Strategic use of Lean Lean leadership Understanding customer value Process focus Standard work Process control Planning, design, development & construction Maintenance of equipment, quality etc Supporting infrastructure


• Self assessment survey sent to 21 key suppliers in September 2010.• 10 areas scored on scale 0 to 4.• No risk response.• No attributable scores – each company received feedback individually.• Expectation is that it will take industry inorder 10 years to get to levels 3 or 4.


• Average of all responses suggests that the supply chain considers itself at a 1.7/4.0 maturity level

• Averages of all responses: Consultants 1.9 Tier one contractors 1.7 MACs 1.7 Tier two suppliers 1.6 Materials suppliers 1.5


1. Lean Visual Management: is about communication and enabling teams to deliver performance improvement over time.


Each Project was tracked using magnetic cards


Programme Visual Management Board 1800mm x 2400mm

•


2. Collaborative Planning System: is about enabling teams to deliver the same amount of work but with less resource.


3. Continuous Improvement Activity

Collaborative Planning System

Lean Visual Management


Collaborative re-programming to bring a delayed project back on track

Weekly/Monthly Plan and collaboratively produced programme


•97% of all programmed schemes start as per programme date, previous figure was 56%•Recorded £30m benefits realised (since April 09)•20% was saved in design time, this has resulted in savings of £ 465,770 in Area 12 (Pilot programme)•Established a Lean community in supply chain•HALMAT developed as part of supplier selection


• Guides on Collaborative Planning and Lean Visual management for supply chain


• Toyota, Nissan and Honda auto companies

in the UK had reduced their product

development time from 40 to 15 months.

Time from placing an order on the factory to

a customer also decreased from 120 days to

15 days.

• In Grocery retailing, Tesco stores have

reduced the capital cost of their stores by

40% in five years.


•Bell Common Tunnel Refurbishment has reduced

the duration of traffic management from 390 to 240

days, overall 2 weeks saved on programme, below

the target cost and was completed with minimal

disruption to the 85 million live vehicles

•VSU Project, Reduced turnaround times, opened on

time for the Olympic, reduced plant and labour

costs, very limited re-work and non-conformances,

using BIM resulted in improved excavation

sequence - quicker & safer

Warwick MSc - Construction Management Module 2015 B Y M AI N GUYEN By Mai Nguyen London Bridge...

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