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Asset Lifecycle Solutions LEAN Project Delivery of Minor Capital Projects Brierley D Stubbs – Asset Lifecycle Solutions Falah Alhusan – United Utilities
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LEAN Project Delivery of
Minor Capital Projects
Brierley D Stubbs – Asset Lifecycle Solutions
Falah Alhusan – United Utilities
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Asset Lifecycle Solutions Chartered Quantity Surveyors
Whole Life Value Management
of Built Asset
Consultancy – Coaching -
Interim Management
Brierley D Stubbs FRICS
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Client Sectors [Project Works, Overhauls & Renewals, Minor Works,
Maintenance & Facilities Management]
Utilities infrastructure
NHS (Hospitals)
Oil Gas & Chemicals Process
Pharmaceutical
PFI / PPP
Social Housing
Hospitals & Education
Sports & Leisure
Uniformed Services
Aviation
Railways infrastructure
Nuclear
Commercial & Retail
BRIERLEY STUBBS Asset Lifecycle Solutions 3
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Falah Alhusan BSc MSc CEng FICE FAPM
Wastewater Programme Delivery Manager
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LEAN Project Delivery in Infrastructure Minor Works
INTRODUCTION [Falah Alhusan]
• United Utilities Minor Works profile
Part 1 – The Case For Lean Project Process [Brierley Stubbs] • 5 LEAN Principles
• Stakeholder Value Drivers
• LEAN Construction & Process Efficiency
Part 2 – The Solution [Brierley Stubbs] • SWOT Review – Stakeholders, Process, Contracts
• Project Delivery – Process definition – Inputs, Outputs, Responsibilities
• Service Levels & KPMs
• Key challenges
Part 3 – Value Achievements & Awards [Falah Alhusan]
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United Utilities Minor Works Scope – Outline Summary
• UU Definition - Infrastructure & Non Infrastructure
• Non Infrastructure Operational sites
– Q+X Programmes, Lifecycle renewals, Operational problems
• NW England – 4 x Areas
• End2End Project Delivery
• Framework Construction Partners + Kit Vendors
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Delivery Parameters
• Work initiation - Problem Notes, VSPs, MCPs
• Governance & Compliance
• Operational Sites
• Multidiscipline scopes
• Annual throughput; – 600 – 800 minor capital projects per year
– 80% < £100k
• Non-uniform work flow
• Wide geographical dispersion
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United Utilities Geographical Coverage
Contractor 3 Manchester
Carlisle
Manchester
Carlisle
D/hulme
Cumbria
Manchester
Merseyside/
Cheshire
Lancashire
Contractor 1
Contractor 2
Contractor 4
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The Minor Works Team
End2End Project Delivery; • Solution planning & Scope development • Budget & Detailed Estimating • Optioneering (Optimised lifecycle cost) • Outline & Detailed Design • Risk Assessment & Management • H&S Management - CDM • Contract Procurement • Construction Management • Commissioning and handover
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The Challenge
• Improved workflow
• Demonstrate the BEST FIT solution
• Reducing appointment time
• Maximising value in terms of “Whole Life Cost” and lowest prices
• Maximising resource efficiency – Company & Supply Chain
• Providing maximum flexibility in approach to project delivery
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Minor Works Delivery Process Evolution
• Pre Partnering (>>> 2001) – MWD Services defined – Competitive tender procurement – Capture Delivery volumetrics
• MWAF Generation 1 (2002 – 2008) – Establish the project delivery process – Long Term Partnering with the Supply Chain
• (European Construction Best Practice capture – Case Study)
• MWAF Generation 2 (2008 >>) – DEMONSTRATE Client Value – Process enhancement (LEAN)
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Embedding Best Practice
8 P PRINCIPLES + VEPs
EFFECTIVE application of; 1. Project concept & definition 2. Project Team Management 3. Supply Chain Relationships 4. Information Management & Communication 5. Project Risk Management 6. Innovation & Continuous Improvement 7. Project Execution 8. Performance Measurement
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Minor Works Delivery Efficiency Gains
Value & Efficiency initiative
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LEAN Project Delivery in Infrastructure Minor Works
Part 1 – The Case for LEAN Project Process
• 5 LEAN Principles
• Stakeholder Value Drivers
• LEAN Construction & Process Efficiency
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2. Map the Process
3. Create Flow
4. Draw Value
5. Improve Performance
1. Identify Value
5 x LEAN Principles
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Stakeholder Values
• Who are the Stakeholders? – Treatment Managers,
– Area Works Planning,
– Technical Officers,
– Asset Registration,
– H&S,
– Minor Works Team Project Manager,
– Construction & Supply Chain partners
– CUSTOMER [OFWAT]
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Demonstrating Value
• Value Drivers – Lowest “Cost to Serve”
– BEST FIT Solution • “Common Framework” alignment
– Minimum Client Involvement / Ops interruptions
– Time to PIU (Project in Use)
– Prompt Asset Registration
– Budget Compliance
– Construction Cost = market rate benchmark
– Supply Chain profit & efficiency
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£1 W A S T E NVA ACTIVITY VALUE 25p Typical
Value in the Construction Process
£1 LEAN VALUE NVA ACTIVITY WASTE
MINOR WORKS THROUGHPUT 600 – 800 Jobs per year
80% < £100k Multidiscipline Framework Partners
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VALUE IS IN REDEFINING THE PROJECT PROCESS
• Governance & Compliance – Corporate Governance
• Project Approvals, Finance (Capex / Revex, Economic asset lifecycles), Procurement, etc
– Regulatory compliance • Q&X, Customer Service, Asset Registration, etc.
• Operational Client – >70% of Risk, Cost & Value is determined prior to construction phase
• Minor Works Project Delivery Team – >40% of effort is spent prior to construction phase (Needs definition, Option
appraisal, Solution ID, Sanction estimate, Contract Procurement)
• Framework Partner – Abortive & duplicated effort (poor needs definition) – Workload planning problems (Project Approval delays, Job prioritisation
changes) – Leading to changes on site – scope and cost creep.
• Kit Vendors / Specialist Suppliers – Delivery periods / storage / Site reception
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End2End Project Delivery Planned & Reactive Maintenance, Replacements & Renewals
KIT VENDORS
CONSTRUCTION PHASE PLAN
CONSTRUCT COMMISSION
HANDOVER
O&M MANUAL TRAINING
ASSET REGISTER
SOLUTION DESIGN
REV
IEW
& F
EED
BA
CK
NEED! AREA
WORKS PLAN
SOLUTION OPTIONS
PROCURE PROJECT APPROVAL
TIMESCALE RISK
ASSURED TIMESCALE
DELAY
DESIGN DEFINE
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LEAN CONSTRUCTION - LCI UK Definition
“LEAN Construction . . .requires collaboration and mutual commitment to”: • Create reliable production in both design and build phases
• <<< Needs definition / Options study / Solution ID • <<< Business Case approval / Procurement
• Planning (Construction) • >>> Area Works Planning & Prioritisation • >>> Access plan / Construction Phase Plan
• Improving Long Term Relationships • >>> MWAF Frameworks
• Committing to High Performance & Continual Improvement • Service levels, KPMs, Experience Feedback (Client led)
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LEAN Project Delivery in Infrastructure Minor Works
Part 2 – The Solution
A Project Process to DELIVER & DEMONSTRATE Value • SWOT Review – Stakeholders, Process, Contracts
• Project Delivery – Process definition – Inputs, Outputs, Responsibilities
• Service Levels & KPMs
• Key challenges
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LEAN/Process Enhancement Facilitator
• SWOT Review – Organisation, Stakeholders, Culture
– Contracts, Process, Service Levels, “Blockers”
– Industry Best Practices / Initiatives • Embedded – Partnering / SCM / ?BIM?!
• Improve - “LEAN” / WLC / KPMs
• Improvement team “Champions” – Client sponsors / Ops Liaison - “Client Guardian”
– Minor Works Team / Supply Chain Partners
• Engagement Plan – Goal Deployment
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Stakeholder Values
• Awaydays & Workshops
– All Party “Grumble session”
– Company Stakeholder Groups
– Contractor Partners
• Agree Value Drivers
– Set Service Levels
– Develop KPMs
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Demonstrating Value
• Value Drivers – Lowest “Cost to Serve” – BEST FIT Solution
• “Common Framework” alignment
– Minimum Client Involvement / Ops interruptions – Shortest / Optimum Time to PIU (Project in Use) – Prompt Asset Registration – Budget Compliance – Construction Cost = market rate benchmark – Supply Chain profit & efficiency
• Planned & Reactive responses
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2. Map the Process
3. Create Flow
4. Draw Value
5. Improve Performance
1. Identify Value
5 x LEAN Principles
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End2End Delivery Process
Problem
Define & Plan
Optioneer
Project Approval
Procure Construct Finalise
Commission & Handover
[Deliverables & Responsibilities] > > > > > > > Create Flow > > > > > > >
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Definition > Options > Solution > Approval Process Flow
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Definition > Options > Solution > Approval Create Process Flow
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Minor Works Alliance Frameworks
• NEC – ECC Engineering and Construction Contract (3rd Edition) – Option A – Priced contract with activity schedule
• {95% of jobs}
– Option C – Target Cost with activity schedule • {over £200k}
– Option E – Cost reimbursable • {Emergency works}
• Tendered / Agreed Rates for defined cost elements
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2. Map the Process
3. Create Flow
4. Draw Value
5. Improve Performance
1. Identify Value
5 x LEAN Principles
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Project Delivery Process Incidence of KPMs
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Project Delivery Process KPM Categories
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Project Delivery Process KPM Summary (Excerpt)
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Project Delivery Process KPM Metric – Work Planning
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Project Delivery Process Visual Management
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LEAN Project Delivery in Infrastructure Minor Works
Part 3 – VALUE ACHIEVEMENTS & AWARDS
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Delivering Client Value Outcomes & Benefits 1
• LEAN End2End Project Delivery process – Clear stages, service levels, responsibilities – Agreed KPMs & metrics
• Client operations
– Increased volume of resolved business risks – Assured compliance – regulatory & internal – Economies of scale & reduced lead in time – Certainty of outcome (solution, time & cost) – Asset data capture (PIMS / UCD / MAMS)
• Supply chain
– Collaborative win-win environment – Greater coordination with Kit Vendors – Efficient workload planning & use of resources – Reduced risk – Limited disputes or claims
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Delivering Client Value Outcomes & Benefits 2
• Minor Works Team – Smaller supply base / reduced interfaces – Clearer understanding of Client requirements – Delivery achievements enhanced (see below) – Improved H&S performance – External service opportunities
• Measured efficiencies (Minor Works Team)
– Cost to serve - reduced by -37% – Annual average throughput - increased by +25% – Sanction estimates approved - within timescale 96% – PIU milestone - Target exceeded 95% – Project Outturn cost - Within approved estimate 96% – Risks & Issues - without escalation 98% – H&S Management - without incident 99% – Client satisfaction - Overall 87%
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A Success Story
• ECI Long Term Partnering – Case Study
• ECI “ACTIVE”
• Construction Industry Awards
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LEAN Project Delivery in
Infrastructure Minor Works
Discussion
