Intro to LeanIntro to Lean
Perceptions of What Lean is
• “Lean is about eliminating Waste”Yes, and…Yes, and…
• “Lean is about doing More with Less”Yes andYes, and…
• “Lean is about standardizing process”Yes, and…
• “Lean is about adding Value”Lean is about adding Value Yes, and…
What is Lean Project Delivery?
Lean Project Delivery is a way of Thinking and BehavingThinking and Behaving
that focuses on the Customer or Client,the Flow of the Process and howthe Flow of the Process and how
to Add Value and Eliminate Waste.
It is best executed with Incremental, Value Waste,
SustainableImprovements.
Value Waste
TPS vs. LPDTPS (Lean Manufacturing):
• Manufacturing is a Repetitive Process with a Defined Sequence Accomplished in a Controlled Environment at the Same Location.
• Accomplished by the Same Workforce each Time Repeating the Same Task with Limited Personal Variability
• Applying Detailed Instructions Utilizing many Preassembled ComponentsApplying Detailed Instructions Utilizing many Preassembled Components
Analogy: The "Scientific Method“
LPD (Lean Project Delivery):
•Construction is a Repetitive Process with Variable Sequence overall Accomplished in a mostly Uncontrolled Environment at Different Locationsin a mostly Uncontrolled Environment at Different Locations
• Accomplished by a Different Workforce each Time Doing Multiple Tasks with Personal Variability
• Applying Variable Personal Knowledge Utilizing Limited Preassemble Components.
Analogy: Ordered Chaos
Road to Mastery
Mastery
Competence“Hmm?”
Understand
Competence“Aha!”
“Ah!”
UnawareAwareness
“Huh!”
“Huh?”Courtesy Will Lichtig LCI
3 Domains of Project Delivery
Operating System
Adapted from G. Howell, LCI
3 Domains of Project DeliveryOperating System Commercial
HierarchicalSiloed
CPMSpecialist
Lump SumIndividualSiloed
Command and Control
SpecialistParts
IndividualLow Price
ControlCollaborative
Fl tLean
S t i blEntrepreneurial
C ll tiFlatConsensus
SustainableBIM
CollectiveBest Value
Adapted from G. Howell, LCI
5 Big Ideas
Collaborate; Really CollaborateReally Collaborate
OptimizeIncrease I ti C titi pThe WholeIncrease
RelatednessInnovation Competitive
ContinuousImprovement
BuildT
Projects as Networks of Tightly Couple
Improvement
Reliability
Trust
Networks ofCommitment
Tightly CoupleLearning w/ Action
Adapted from G. Howell, LCI
3 Connected Opportunities
Impeccable Coordination
Production System Design
Collective EnterpriseCollective Enterprise
Adapted from G. Howell & Will Lichtig , LCI
Three M’s of LeanMudaWaste
MuriMuraU OverburdenUnevenness (Flow)
from The Toyota Way
Waste in Project Delivery• Overproduction – Resolving conflicts between trades, or other contractors. Performing
work ahead of schedule, causing interferences with other planned work. Additional material ordered due to inability of suppliers to provide quality
• Waiting – People waiting for equipment, plans, or instructions on how to proceed. Waiting for material because of ineffective supply chains Waiting on funding or release offor material because of ineffective supply chains. Waiting on funding or release of purchase orders.
• Movement – Moving materials from one staging to another, handing off work between crews or designers.
• Overprocessing – Redundant or unnecessary reporting, expediting material orders or p g y p g p gexcessive coordination between suppliers. Providing too much information.
• Excess inventory –Material staged on site too far in advance of when needed. Contingency – Like inventory hides poor processing, procurement, estimating, design, and coordination error.
• Unnecessary movement – Construction teams returning back to “office” to pick up plans• Unnecessary movement – Construction teams returning back to office to pick up plans, tools or materials not available at the site. Poor coordination of design or construction activies.
• Defects – Rework, re-doing some tasks because of errors in the design process discovered after work was started. Failing to provide all necessary information to complete task Punch lists Not defining Donetask. Punch lists. Not defining Done.
• Unused employee creativity – losing ideas, time, skills, or improvements by not engaging all employees.
• Unevenness – Mura – Flow Over/Under promising failing to meet commitments• Unevenness – Mura – Flow, Over/Under promising, failing to meet commitments• Overburdon – Muri – Capability, overstressing people or equipment beyond natural limits
Adapted from The Toyota Way
Three M’s of LeanMudaWaste
MuriMuraU OverburdenUnevenness (Flow)
from The Toyota Way
Flow ( Manufacturing)Traditional Mass Production
Thinking• Economics of Scale
Lean Production Thinking MPS
• Built in Quality• Economics of Scale• Apparent Flexibility in
scheduling
• Built in Quality• Creates Real Flexibility• Creates Higher Productivityg
• Batch processing• Work in progress
• Creates Higher Productivity• Frees up Floor Space• Improves Safetyp g • Improves Safety• Improves Morale
Reduces cost of Inventory• Reduces cost of Inventory• One Piece Flow
Work in progress Reduced• Work in progress Reduced
Flow vs. Commitment Reliability• What is the impact on Flow on Project Delivery?• Why is Flow as important (or more) as Waste?y p ( )• Fact: typical commitment reliability is ~55%
Typical Project Commitment Reliability
Incomplete Work45%
Work Completed
as Promised
55%55%
from G. Howell and G. Ballard research
Flow (Construction)• Pull plan Master Schedule to ensure effort achievable.• Plan work ahead of scheduling/execution (Design, Materials,
Manpower, JSA, Permits, Notifications)Manpower, JSA, Permits, Notifications)• Deliver agreed to Services/ Activities when expected.
– Closest person to actual work is making the commitment (Last Planner)– Appropriately sized so completion can be measured (weekly)– Appropriately sized so completion can be measured (weekly)– Avoid Under Promising (too much schedule contingency)– Avoid Over Promising (missing commitments)
All phases/disciplines should participate appropriately– All phases/disciplines should participate appropriately– Look to eliminate Root Cause of missed commitments
• Level Resources so commitments can be made to match need
P DThorough
Conceptualization
match need.• Completion is strict Yes/No to avoid rework.• Periodically check progress vs. master schedule
Reflective Correction
Compare to Expected
Careful Execution
CAExpected
Flow (Construction)
Last Planner TM
Design at the Pull of Construction
Owner wants an operating asset.• Focus on the building of the asset (how/when)• Keep in mind how and when it will be purchased. Its not always the same.• Design is not the end product and by itself has little value.• Design should frame choices (scope and $) first, narrow the choices, then
provide detail and constructability.Some details are more important than others Know when to lock them in• Some details are more important than others. Know when to lock them in.
• Design should facilitate communication of details. Think about who is the right group to define the detail.
Information/
Design
Plan
Cost
Manpower M t i lManpower Material
Why SAT’s
LeanDeliveryDelivery
Action FocusedFocused
CurrentPractice
Learning FocusedCourtesy Will Lichtig LCI
14 Toyota Way PrinciplesLong Term Philosophy
1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.p g
The Right Process Will Produce the Right Results2 Create continuous process flow to bring problems to surface2. Create continuous process flow to bring problems to surface.3. Use “pull” system to avoid overproduction.4. Level out the workload. (heijunka)5 B ild lt f t i t fi bl t t lit i ht th5. Build a culture of stopping to fix problems, to get quality right the
first time.6. Standardized tasks are the foundation for continuous improvement
and employee empowermentand employee empowerment.7. Use visual control so no problems are hidden.8. Use only reliable, thoroughly tested technology
that serves your people and processes.that serves your people and processes.
14 Toyota Way PrinciplesAdd Value to the Organization by developing your people and partners
9. Grow leaders who thoroughly understand and work, live the hil h d t h it t thphilosophy, and teach it to others.
10. Develop exceptional people and teams who follow your company’s philosophy.
11 Respect your extended network of partners and suppliers by11. Respect your extended network of partners and suppliers by challenging them and helping them improve.
Continuously Solving Root Problems DrivesContinuously Solving Root Problems Drives Organizational Learning
12. Go and see for yourself to thoroughly understand the situation. (genchi genbutsu)
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).reflection (hansei) and continuous improvement (kaizen).
4P Model
• Continual organizational Learning Through KaizenProblem Solving
(Continuous Improvement and
Learning)
g g g• Go see for yourself to thoroughly understand the
situation (Genchi Genbutsu)• Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly
People and Partners(Respect, Challenge and
Grow Them)
• Grow Leaders who live the philosophy• Respect, develop, and challenge your people and teams• Respect, challenge and help your suppliers
• Create process “flow” to surface problems
Process
(Eliminating Waste)
• Use pull systems to avoid overproduction• Level out the workload (Heijunka)• Stop when there is a quality problem (Jidoka)• Standardize the tasks for continuous improvement• Use visual controls so no problems are hidden• Use only reliable, thoroughly test technology
Philosophy
(Long-Term Thinking)
y g y gy
• Base management decisions on a long-term philosophy, even at the expense of short-term financial goals
from The Toyota Way
Drivers of Motivation (Behavior)• Money• MasteryMastery• Autonomy
P• Purpose
Motivation MAP
Mastery• Know and Develop People
– Identify and Train Your Replacementde y a d a ou ep ace e– Push Idea down to contractors
• Continuous Improvement/Continuous• Continuous Improvement/Continuous Feedback
PDCA ( Plan/Do/Check/Act)– PDCA ( Plan/Do/Check/Act)• Skills Development
T h i l C ll– Technical Colleges– Job Training
Autonomy• Collaboration
– Value everyone’s contribution– Team
• Consensus– Where possible
• Last Planner– You tell me how/when vs. I tell you when– Reliably of commitments
Trust is essential– Trust is essential• Encourage/Allow Flexibility of Work time
Work/Life Balance– Work/Life Balance
Purpose• Engage Partners with Purpose of Project
and Mission of Merck– Work Today ➙ Life Saved Tomorrow– How do the medicines we make improve lives
• Tie Efforts to Priorities– Compliance (Quality/Safety/Environment)– Supply (Deliver meds to people cost
effectively)Ali G l f P j t ith• Align Goals of Project with– Goals of each Company
G l f h I di id l– Goals of each Individual
Lean SafetySafety Incident
E i t Sli L Mi t k Vi l tiEquipment Failure
Slips or Laps Mistake Violation
• Training • Training • Training • Planning• Proper Use
• Planning• Capability
• Awareness
• Planning• Collaboration
• Skill
• Planning• Execution
• Policing
• Operability
• Right Tool for Job
• Inspection/
• Execution
• Coordination
• Fool proofing
• 1st Run Study
• Practice
• Fool proofingpMaintenance
p g• Standardization
p g• Standardization
Muri (Over burden)
Proper Use Attention, Awareness, Recognition
Lean and Safety
Lean and Safety are VSfoundational principles.
If they are treated as bolt on or plug in programs then both are limited in the results they can achieve.
Lean and SafetyBarriers/ Preventive Actions
Knowledge, Skill, Awareness, Plan, etc.
ActionMishap
Result
Lean and SafetyBarriers/ Preventive Actions
Knowledge, Skill, Awareness, Plan, etc.
ActionMishap
Result
Lean:
Increases prior Planning, simplifies and standardizes procedure Increases awarenessstandardizes procedure, Increases awareness of surrounding, helps people recognize pitfalls
The Road to Understanding Lean Project Delivery
ReadyProject as a
4
IFOAProduction System &
Collective Enterprise
3IFOAWork Structuring
Network ofCommitments
Target Value Design
2CommitmentsDependence& Variability Last Planner System
1Study Action Team
Awakening New Possibilities
Here Adapted from G. Howell
Lean Tools Examples• Last Planner• Building Information Modeling (BIM)
– 3D, 4D, 5D, BIMT t V l D i• Target Value Design
• Relational Contracting• Modularization/Prefabrication• Set Based Design• Set Based Design• A3 Thinking (PDCA, 5 Why’s, Root Cause Analysis)• Choosing By Advantages (CBA) (QFD)• Value Stream MappingValue Stream Mapping• 5S (Job Box, Connex, Job Site, 5S audit) / Kitting • Just in Time Delivery• Design at the Pull of Constructiong• Andon / Visual Queuing • Visual Boards / Dash Boards• 1st Run Studies / Quality Manuals• Location Based Scheduling
What is Being Achieved
What is Being Achieved
What is Being Achieved
What is Being Achieved
What is Being Achieved