The use of Lean Metrics to drive project success

APM 17th Feb 2016

Angela Ellis

Capital Projects Team Manager

Natural Resources Wales

Contents

• About me

• Introduction to ‘Lean’

• Continuous Improvement Project - Capital Project

Management of flood defence projects in NRW

- CI techniques used

- Improvements demonstrated

• Lessons learnt from using Lean Metrics

Angela Ellis: About me

Team Leader for Capital Projects Delivery team at Natural Resources Wales

• Team of 16

• 45-55 projects per year, total value £12m-17m

• Client role for appraisal, design and construction of flood

defences and water resources assets

• Budgets allocated from Welsh Government annually

• Qualified continuous improvement practitioner

• PRINCE2 practitioner

• Leading process improvements across NRW for programme

and project management

http://uk.linkedin.com/pub/angela-ellis/34/960/480

Introduction to Lean

1910’s 1930’s

• Started in manufacturing

• Now adapted to logistics and distribution, services, retail,

healthcare, construction, maintenance, and government.

• Lean consciousness and methods are beginning to take

root among senior managers and leaders in all sectors

FRM Capital Projects Process (EA legacy)

GW0 Project Handover to PD

↓

GW1 Business Case approval

↓

GW2 Detailed Design

↓

GW3 Contract Award

↓

GW 4 Readiness for Service

↓

GW 5 Contract Completion

↓

GW 6 Project Closure

Appraisal

Design, Planning

Permission

Construction

Post Construction

Continuous Improvement Project

AIM: Analyse the causes of delay which have resulted in

missing FRM project milestones . Make improvements to

reduce delay.

PROBLEM: “The number of times milestones are not met

results in failing to start construction on the planned date”

The Voice of the Customer: “I think it is not progressing the work

fast enough, which I then think is a question of resource

allocation, perhaps internally and I think also from our suppliers?”

Qualitative root cause analysis

See fishbone diagram for analysis

• Too long on sign off or approvals

• FSoD sign off

• Flood Defence Consent

• Protected Sites Consent

• External consultation

• Procurement of suppliers

• Modelling impacts on solution

Pareto chart 80-20 principle

22 milestones missed, with 186 weeks delay

Apr 12 – June 14: 80 milestones measured, 73% met or bettered

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

20

40

60

80

100

120

140

160

180No. Wks delay by cause excluding exceptional causes

Count Cumulative Percentage

Approvals Supplier Procurement FSoD Scope Workload Other

Run Chart analysis

This chart statistically shows that the process altered around

April 2013 with the mean deviation from target changing from

-0.4 to +10.2 weeks!

28/07/201429/04/201410/01/201430/06/201310/04/201317/09/201218/04/201205/02/201228/02/201122/10/201010/07/2007

100

50

0

-50

Forecast

Individual Value

_X=-0.4

_X=10.2

UCL=56.2

LCL=-6.9

LCL=-35.9

10/07/2007 10/04/2013

UCL=6.1

1

2221

2

11

I-MR Chart of +/- by Forecast

Analysis – What changed in the process?

1. In April 2013 changed procurement framework

2. In April 2013 NRW was formed, changes to :

> Approvals process and FSoD

> Move from serviced teams to self-service

3. Request for fast-tracking from 3yr to 2yr programme

Note: The voice of the customer - needed

metrics to show the causes and demonstrate

process capability

Deciding on improvements

Impact matrix

NB. Can also

use criteria of

within control/

outside of control

Making the changes April-June 2014

Top delay cause 1: Approvals • Meetings to raise awareness of issue (internal and

external)

• Raised issue with NRW Transformation

Programme Board (Change Programme)

Top delay cause 2: Suppliers• Further analysis showed queries over scope as a

key issue. Action taken: Improve supplier scope

• Tighten clauses in contracts

• Improve PM training on contracts management

and include as target in their performance review

• Held Supplier Review meeting

June 2015 data review following improvements

Stage 1: EAW

Stage 2: NRW

Stage 3: NRW + Projects Delivery improvements

= Reduction of mean and reduction in variation

Results June 2015

Approvals still the biggest cause of delay

Top delay cause 2: SuppliersJune 2013 - June 2014 24wks delay

June 2014 - June 2015 5 weeks delay

Note: weeks of delay is a cumulative count across

all 50-55 projects.

What else could be done? Lean Behaviour

PD forecast milestones – so be sure of the target

Issues came with more pressure to deliver in <3 years

Behaviour: Use the metrics gathered to improve our

forecasting i.e. historic time from GW0 to GW1 etc,

know the causes of likely delay and how long

Improvements:• Risk to Programme software - Time risk forecasting

at 50 percentile and 95 percentile

• Justifying say no to unachievable programmes

imposed

• MS Project training for PMs

• Standards for supplier programmes and SMFs

Control mechanisms built into the process

• Risk to Programme report introduced,

standing monthly agenda item with client

• Review meetings scheduled 6 monthly with

NRW CI team

But… not the end of story

Further CI work:

“Effective Programme and Project Management”

will address approvals issue

• Follow DMAIC

• Consider if the process has the capability to meet KPI’s/

targets

• Consider whether qualitative and/or quantitative analysis is

necessary.

• Use your metrics as evidence to influence change

Lessons to learn

Any Questions?