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LEAN CONSTRUCTION PRINCIPLESDick Bayer May 16, 2011
The Lean Construction Institute
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BACKGROUND
Use the contract to influence how we do work on the project
Try partnering to influence how we do work on the project
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BACKGROUND
O A R
Change the observer
Change theoperatingsystem
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HOW DO WE MANAGE PROJECTS NOW?
• Determine client requirements including quality, time and budget limits. Design to meet them.
ProgramDesign
to Program
Price
Redesign to
Match Price
© 2011 Lean Construction Institute
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HOW DO WE MANAGE PROJECTS NOW?
• Break project into activities, estimating duration and resource requirements for each activity and placing them in a logical order with CPM
Demolition
Grade & Fill
Foundations
© 2011 Lean Construction Institute
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HOW DO WE MANAGE PROJECTS NOW?
• Assign or contract each activity, give start notice and monitor safety, quality, time and cost standards. Act on negative variance from standards
Dem
olit
ion
Low Bid G
rad
e &
FillLow Bid
Fou
nd
ati
on
s
Low Bid
© 2011 Lean Construction Institute
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HOW DO WE MANAGE PROJECTS NOW?
• Coordinate with master schedule and weekly meetings
© 2011 Lean Construction Institute
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HOW DO WE MANAGE PROJECTS NOW?
• Reduce cost by productivity improvement
• Reduce duration by speeding each piece or changing logic
© 2011 Lean Construction Institute
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HOW DO WE MANAGE PROJECTS NOW?
• Improve quality and safety with inspection and enforcement
Work Inspect
Rework
© 2011 Lean Construction Institute
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TRADITIONAL PROJECT MANAGEMENT: A COHERENT COMMON SENSE
Activity Centered(CPM)
Command & Control
Organization
Transactional
OperatingSystem Commercial
© 2011 Lean Construction Institute
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LEAN PROJECT MANAGEMENT: A MORE COHERENT COMMON SENSE
© 2011 Lean Construction Institute
Flow CenteredCollaborative
Organization
Relational
OperatingSystem Commercial
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LEAN TECHNIQUES AND PROCESSES
Three opportunities of lean construction and design:
• Impeccable coordination
• The project as a production
system
• The project as collective
enterprise
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LEAN TECHNIQUES AND PROCESSES
Impeccable coordination
Understanding the work
Collaborative planning
Reliable promising
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LEAN TECHNIQUES AND PROCESSES
Understanding the Work: Traditional Process
Com
mon
Un
ders
tan
din
g CM/GC Hired
Major Trades Hired
Pre-Construction Services
Architect Hired
Engineers Hired
≤100%
SD DD CD
Construction
Owner
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LEAN TECHNIQUES AND PROCESSES
Understanding the Work: Lean Project
Time
Com
mon
Un
ders
tan
din
g
CM/GC Hired
Concept Design
Implementation
Construction
Architect Hired
Engineers Hired
100%
Major Trades Hired
Pre-Construction Services
Valid.
Owner
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LEAN TECHNIQUES AND PROCESSES
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PARADE OF TRADES: ASSUMPTIONS1. The project is complete when 35 units have been processed
by each of seven trades in sequence.
2. The trades come onto the project a week apart. Work is completed and available to the next trade once a week.
3. The trades work in sequence, with each following trade able to work only on what was produced in the previous week by the prior trade.
4. Work is done by rolling a die (singular of ‘dice’) and passing the number of units rolled—up to the number of units the trade has to work on.
5. The number rolled represents the amount of work accomplished each week by the crew. On average each crew is able to produce one unit of work in the week.
© 2009 Lean Construction Institute18
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Move 35 units of work through 7 trades.Work is completed at the end of the week and passed to next trade. Place materials on table as shown.
Chips (the units of work) & Score Sheet
Die
Concrete
Mason
Facade
Paint
Electrical
Plumber
Carpenter19
© 2009 Lean Construction Institute
PARADE OF TRADES
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1. Distribute score sheets as directed
2. Chips on the left of Concrete
3. Establish queue spaces between each trade and cup at end.
4. Give die to Painter5. FUNDAMENTAL
RULE: Chips move right, dice move left
© 2009 Lean Construction Institute20
PARADE OF TRADES
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21
Mason rolls 2, moves 2, leaving 1 in inventory. Hands the die to Concrete. Records the result.
© 2011 Lean Construction Institute
PARADE OF TRADES
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Concrete rolls 3 and moves 3 chips.Hands the die to the painter!Records the result.
22
End of Week 1
Painter says, “Beginning week 2” Die passes left all the way around the circle to the Mason.
© 2011 Lean Construction Institute
PARADE OF TRADES
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23
Concrete rolls 2, passes 2, records. Hands die to Painter.Painter says, “Beginning week 3.”
Week 2: Mason rolls 2; passes 2, 1 in inventory. Mason records 2, hands die to Concrete.
© 2011 Lean Construction Institute
PARADE OF TRADES
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Week 3: Facade rolls, passes & records. Hands die to Mason. Mason rolls, records and hands die to Concrete. And so it goes.
© 2011 Lean Construction Institute
PARADE OF TRADES
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Concrete
Carpenter
Mason
Facade
Electrical
Paint
35
Die
Plumber
Chips
Keep passing the die to the left!
25© 2009 Lean Construction Institute
Die
PARADE OF TRADES
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PARADE OF TRADES
Record the week each Trade finishes. Sum and record the Available Capacity for all Trades. Sum and record the total Remaining Inventory for all Trades except Concrete. Note the highest amount of Inventory in any week for each trade. Call out scores when asked.
26
Craft Week Complete Total Capacity (Sum "Column 1")
Total Inventory (Column 3)
Highest inventory in any week for
this trade
Concrete
Mason
Façade
Carpenter
Plumber
Electrical
Paint
Sum of Column
Circle Color of Dots on Die Blue Black Red
© 2011 Lean Construction Institute
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27© 2011 Lean Construction Institute
PARADE OF TRADES
Scheduling: How many weeks will
it take you to move 35 pieces of work through 7 trade stations?
Profitability: What’s the number of
resources you will use to move 35 pieces of work through 7 trade stations?
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RESULTS#
Weeks
to C
om
ple
te
1.2.2.5.5.6 1.2.3.4.5.6 2.2.3.4.5.5 2.3.3.4.4.5 3.3.3.4.4.4
1.1.1.6.6.6
# W
eeks
to C
om
ple
te
Average
Worst
Best
28© 2011 Lean Construction Institute
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LEAN TECHNIQUES AND PROCESSES
Collaborative Planning Delay decisions to last responsible
moment Use Pull Planning to Create Schedules Reliability of work flow Only do work to release downstream
crews (important also in design)
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LEAN TECHNIQUES AND PROCESSESCollaborativePlanning
Chilled WaterPlant–
3-D BIM model,
located the
equipment on the pad,
connected the piping and
identified the hangers . . .
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LEAN TECHNIQUES AND PROCESSES
Collaborative
Planning:
. . .then
designed the
structure to
carry the
building
components
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LEAN TECHNIQUES AND PROCESSES
CollaborativePlanning
Short loopdesign iterationsusing budget as
a design criteria
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LEAN TECHNIQUES AND PROCESSESCollaborative Planning: Set Based Design
Create Analyze Converge Decide
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LEAN TECHNIQUES AND PROCESSES
Reliable Promising:
in Design andConstruction
Pull planning for
design efforts
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LEAN TECHNIQUES AND PROCESSES
Reliable Promising: in Design andConstruction
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LEAN TECHNIQUES AND PROCESSESReliable Promising: in Design and Construction
Movie Time
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IMPECCABLE COORDINATION & PRODUCTION SYSTEM DESIGN
© 2011 Lean Construction Institute
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Begin with blank card
Goal is to produce a card that looks like this . . .
© 2011 Lean Construction Institute
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© 2011 Lean Construction Institute
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Station 1 performs any necessary layout for installation
© 2011 Lean Construction Institute
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Station 2 is responsible for assuring batch size
Batches of 5 must be punched and secured with a paper clip
© 2011 Lean Construction Institute
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Station 3 is responsible for installing the green dot
© 2011 Lean Construction Institute
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Station 4 is responsible for installing 3 red dots
© 2011 Lean Construction Institute
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Station 5 is responsible for installing the yellow dot
© 2011 Lean Construction Institute
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Station 6 is responsible for installing star on yellow dot
© 2011 Lean Construction Institute
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PHASE 1 LOGISTICS
Workstations in work flow sequence Materials located at workstation Workstations 2-7 have an incoming queue
space Completed Batches of 5 placed in queue
space of next station Batches remain together until final
inspection
© 2011 Lean Construction Institute
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PHASE 1 POLICIES Workers perform only their assigned tasks - NO
THINKING Maintain Batch integrity - BUILD IT IF YOU CAN
and PASS IT ON IF YOU CAN’T. QC Problems only detected by Inspector - NO
FEEDBACK - NO TALKING All QC problems set aside by inspector as rework -
TURN UPSIDE DOWN QC Inspector announces first good product. Assemblers are paid by the piece, period.
© 2011 Lean Construction Institute
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PERFORMANCE METRICS Production: the number of good
cards produced in each 6 minute phase.
Time: the time it takes the first good card to get through the system.
Rework: the number of cards set aside to indicate defects in configuration or fit.
Work-in-Progress Inventory (WIP): the number of subassemblies on the table at the end of the 6 minute phase.
© 2011 Lean Construction Institute
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YOUR HYPOTHESES
How many good cards will your team produce in Phase I?
How long will it take for you to produce the first good card?
How much rework will you generate (cards set aside)?
How much WIP will you generate (subassemblies left on the table)?
© 2011 Lean Construction Institute
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HOW COULD THIS SYSTEM BE REDESIGNED FOR BETTER PERFORMANCE?
© 2011 Lean Construction Institute
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PHASE 2 LOGISTICS
Workers may have only one assembly at their workstation
Only 1 assembly allowed in queue space between stations (Batch size of 1)
Assembly can only be placed in queue when it is empty (pull mechanism).
Workstations in Work Flow Sequence Materials located at station Stations 2-7 have an incoming queue space
© 2011 Lean Construction Institute
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PHASE 2 POLICIES
QC Problems may be verbalized by any worker SOME THINKING and TALKING ALLOWED
All QC problems set aside as rework at station discovered. TURN UPSIDE DOWN
Everyone is paid hourly wages plus a bonus for team performance.
Workers perform only their assigned tasks Workers cannot fix QC problems from upstream Inspector announces first good card.
© 2011 Lean Construction Institute
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PHASE 3 LOGISTICS
Workload may be re-sequenced and/or rebalanced by the team
Workers may have only one assembly at their workstation
Only 1 assembly allowed in queue space between stations (Batch size of 1)
Components can only be placed in queue when it is empty (pull mechanism).
Workstations in Work Flow Sequence Materials located at station Stations 2-7 have an incoming queue space
© 2011 Lean Construction Institute
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PHASE 3 POLICIES
Workers perform ANY step in the production process.
QC problems can be fixed by any worker - Fix it when you find it.
No restrictions on talking. Everyone is paid hourly wages plus a
bonus for team performance. Inspector announces first good card.
© 2011 Lean Construction Institute
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YOUR HYPOTHESES
How many good cards will your team produce in Phase III?
How long will it take for you to produce the first good card?
How much rework will you generate (cards turned upside down)?
How much WIP will you generate (subassemblies left on the table)?
© 2011 Lean Construction Institute
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THE DOT GAME
1. What are the key points or lessons for you?2. How might these apply to designing and
building? How could you use what you have learned on your project?
© 2011 Lean Construction Institute
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GOALS FOR PRODUCTION SYSTEM DESIGN Match throughput rate to demand rate Minimize cycle time Reduce WIP to the minimum needed to
maintain throughput Minimize resources required
© 2011 Lean Construction Institute
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LEAN TECHNIQUES AND PROCESSES
Reliable Promising: in Design and Const.
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PPC
4 Week Moving Average
Planning System Measurement
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LEAN TECHNIQUES AND PROCESSES
Production System Design
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LEAN TECHNIQUES AND PROCESSES
Production System Design: Target Value Design Pull planning Built in Quality Plan Safety Plan First Run Studies Metrics
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LEAN TECHNIQUES AND PROCESSES
Collective Enterprise: Maximize the whole, not the pieces
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LEAN TECHNIQUES AND PROCESSES
Collective Enterprise: Maximize the whole, not the pieces
Contingency
CM/GC
Architect
Mechanical
Electrical
Engineering
Steel
Drywall
Conc. Civil
Glazing
Profit
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“BUILDINGS LEAK AT THE INTERSECTION OF CONTRACTS”
Waterproofing
Structural steel
Roofing
Window
Caulking
Masonry
Concrete
Excavation
Foundation
Wall stud
Todd Zabelle
© 2010 Lean Construction Institute
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KEY LEARNINGS
• The larger system is the focus of management attention, not local optimization
• Stakeholder interests are aligned through shared risk and reward
• Product life cycle stages are considered in the development of the value equation
• Product and process are designed together; indeed, all design criteria are considered when generating and selecting from design options
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KEY LEARNINGS
• Downstream players are involved in upstream work, and vice-versa
• Continuous learning and innovation is the real end game
• Variation is attacked and reduced —variation in work load, in process durations, in product quality, in plan reliability, …
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KEY LEARNINGS
• Inventory, capacity, schedule and financial buffers are sized and located to perform their function of absorbing variability that cannot yet be eliminated
• The rule followed for release of work between connected specialists is: Flow where you can, Pull where you can’t, Push where you must
• Activities are performed at the last responsible moment
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WHO’S DOING LEAN?
•Healthcare Projects (IPD or IPD-ish):
• Sutter Health, Northern California
• Camino Medical Center (DPR)
• Castro Valley (Turner)
• Cathedral Hill (Herrero/Boldt)
• Palo Alto Medical Center (Skanska)
• Sacramento General (renovation/new: Boldt)
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WHO’S DOING LEAN?
•Healthcare Projects:
• UHS, company-wide
• Texhoma
• Temecula: Reducing sqft costs to $900/
• SSM,
• Cardinal Glennon, St. Louis
• St. Claire, Fenton, Mo.
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WHO’S DOING LEAN?
• Healthcare Projects:
• Affinity Healthcare, Appleton, Wis.
• Augusta General, Maine
• Martin Memorial, Stuart, Fla.
• Seattle Children’s
• Theda Care, Wisconsin
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WHO’S DOING LEAN?
• Public Projects:
• School Projects:
• Middle School, Dallas
• Middle & High Schools, Los Angeles
• Community College, San Diego
• St. Olaf College, Minnesota
• Community College, Cleveland
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WHO’S DOING LEAN? DESIGN FIRMS
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WHO’S DOING LEAN? CONSTRUCTION FIRMS
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WHO’S DOING LEAN? CONSTRUCTION FIRMS
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WHO’S DOING LEAN? TRADES
Visit www.leanconstruction.org for all of our Corporate members