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

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1997 1999 2001 2003 2005

Bid Index

Cost Index

Consumer Price Index

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

$

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)


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)


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


2 Current Condition


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


2 Current Condition


Theme This works because…


2 Current Condition


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.


2 Current Condition


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.


2 Current Condition


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


2 Current Condition


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

$

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.

$

$

$

$

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

lean is more

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