Linbeck Lean Project Delivery
©Linbeck/Jose Solis - Proprietary & Confidential Slide 2
Introduction Who I am not?
I am not a Lean consultant I have nothing to sell and I am not being paid to be here I am not an academic with a hypothesis to prove
Who am I? President & CEO for Linbeck Group LLC I am a builder; have never done anything else I have a passion for the construction industry and finding
ways to improve it
©Linbeck/Jose Solis - Proprietary & Confidential Slide 3
Lean Definition
What is Lean Construction?
“Lean Construction is a set of ideas, practiced by individuals
in the construction industry, based in the holistic pursuit of
continuous improvements aimed at minimizing costs and
maximizing value to clients in all dimensions of the built and
natural environment: planning, design, construction,
activation, operations, maintenance, salvaging, and recycling.”
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Why?
Why did Linbeck start doing this more than 10 years ago?Competitive Reasons
Why should others do it? To survive!
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Don’t We Do This Already?
Some say yes – Life is easy; they already have all the answers.
Those who say no - Should they feel compelled to do something about it?
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Yes or No? Not according to Government Statistics
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Industry Reliability Model
50%
25%
10%
90%
75%
Timestart completion
Construction Industry Norm
Lost OpportunityIndustry Wastes 40-50%
Relia
bilit
y
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Construction Professional?
Do you think the best and brightest want to work this way?
Sounds like a career of endless issues and unnecessary risk.
Are you considered a professional because you survived it?
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Value/Waste Relation
VALUE
WASTE
PREDICTABILITY
VARIABILITY
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Production: · Under · Over · Untimely
Performance : · Non · Under · Over · Untimely
Change:· Scope · Conditions · Errors · External
Discrete Waste
Systemic Waste
Capital Fa c ility Procurement and
Production System s
Synergistic Waste (Affecting stockholders)
Owner
Designers
Contractor
Trade Partners
Waste Types: Discrete, Synergistic, Systemic
25
Discrete Waste (+) Synergistic Waste (x)(Affecting Stockholders)
Systemic Waste (xn)
• Project Delivery System – Contracts
• Systemic nature of the industry• Project Breakdown • Litigation (shift of value)• Devalued Market• National Debt
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Lean Principles
Lean Thinking seeks to eliminate waste in both schedule and budget, so projects are delivered faster - and more cost-effectively.
The continuous application of the four steps above
Define Client’s Value
Map Value Stream
Achieve Value Flow
Respond to Pull
Seek Perfection
Actively understanding what is valuable to our clients in terms of budget, function, aesthetics, standards, and time
Identifying the most effective sequence of activities to deliver the value defined by the client
Eliminating unnecessary procedures to allow more work to be scheduled and executed
Doing work only when needed - when it triggers downstream tasks that will advance the
overall process
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Lean Operating System
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Quality Assurance
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First Lean Principle
Defining Value – What is valuable to your customer?
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Cook Children’s Mission
Cook Children’s Health Care System will improve the health of every child in our region through the prevention and treatment of illness, disease and injury
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Reliability - Capital Cost Budgeting
Speed – Time to Market
Uptime - Patient Care Areas
Customer Satisfaction - Maximizing Positive Patient Outcomes
Controlling Infection – Safe Environment for Healthcare
Cost – Leveraging Market Knowledge, Community Reputation &
Fairness
Quality - Focusing on Long Term Facility Management,
Operations & Maintenance at Lower Cost
Community Service – Support CCMC community mission
First Principle – Defining Value to CCMC
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Fee @ Risk to Meet Owner Goals
Team members collaborate to develop goals and measurement systems to make up a “balanced scorecard” with which the outcomes of the project are assessed.
• Removes the perceived conflict of interest in determining the Guaranteed Maximum Cost (GMP) of the project
• Prevents focusing on cost only, since the Client also has safety, quality, schedule, and functionality goals
• Decreases motivation to argue over minor changes, since there is no economic interest in increasing the contract amount
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Second Principle – Map the Value Stream How we create value by removing discrete waste
Production
• Under production• Over production• Untimely
production
Performance
• Non performance• Under performance• Over performance• Untimely
performance
Change
• Scope changes• Change in
conditions• Errors• External changes
Value Stream
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The right process will produce the right results Continuously experiment and improve the process Define Value, Map Value Stream Engages stakeholders
Lean Principles
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Value Stream of Capital Project Delivery
Updated based on decisions in Feb 08
See Definition VS for Projects
See April 08 Board Package
4/15/18
See Feb 08 Board Package Recap
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Linbeck Sponsored Insured Program (LSIP)
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Project Scope WasteTypical Bridge Work Structure
Owner Identify BridgeCriteria
Architect / Engineer
Builder
Design Bridge Components
Bid Erection and Enclosure
Manage Operations Disruption
Award Trade Contracts
Manage Patient Dissatisfaction
Manage Inefficient Work
Subcontractor Quote Fabricate Bridge Steel
Close Entrance to Emergency Room
Close Street
Erect Bridge
Pieces 14 days
Open One-Half
Street
Enclose One-HalfBridge14 Days
Close One-Half Street
EncloseLast One-
HalfBridge 14 Days
Open Street and
EmergencyEntrance after
42 Days
LegendContractual Relationship
Closing ER entrance for 42 days
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Linbeck’s Lean Process Keeps ER Entrance Open
LegendContractual Relationship
Architect / Engineer
Builder
Subcontractor
ProvideConstructability &
Manage ClientExpectations
OwnerIdentifies Process
Expectations (Value)
Minimize Disruption Of Bridge
Construction
Identify BridgeCriteria
Close Emergency
Room EntranceOne-Half Day
Determine DesignOptions to
Accommodate LessIntrusive Bridge Plan
Design TempSupports and
LiftingRequirements
Bid Assembled On Ground
Bridge Erection
QuoteFabricate
Steel
Award Trade Contracts
Drill Temp Piers
7 Days
Erect Bridge on Ground 7
Days
Assemble Enclosure on Ground
14 DaysClose Street
Erect Bridge
One-Half Day
Open Street and Emergency
afterOne-Half Day
Design BridgeComponents
Closing ER entrance for half day
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Third Principle – Achieving Flow
Achieve flow by removing synergistic waste creating reliability with organization that addresses product needs
Relationships
• Owner• Designers• Contractor• Trade Partners
Flow
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Integrated Project Team
Specialty Consultant
Integrated Project TeamUtilizing TeamBuild® Approach
Owner Direct Contractor
CMR – Linbeck
Engineer
Architects
FF&E Vendors
Specialty Consultant
CCMCOwner
LinbeckProject
Manager
INTEGRATION
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Organizational Alignment
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Owner
Linbeck PM @ Risk
Architect & Engineer
Core Specialty
Contractors
Integrated Project Team
INTEGRATION
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Create the right “flow” Involve the right people at the right time Allocation of responsibility and authority Create clarity
Map out the process and the value stream “WHAT” “HOW”
Implementation of BIM in the LOS
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Fast
BIM Tools
EarlyProcurement
Communicating via ModelQualifying Trades
GMP at SD
Fast
BIM Tools
EarlyProcurement
Communicating via Model
Qualifying Trades
GMP at SD
Lean BIM Tools
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Fourth Principle - Responding to Pull
Respond to pull by doing work at the last responsible moment
Use pull driven approach Define what is needed Create what is defined Not more Execute flawlessly
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Using Tools – Pull Schedule
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Responding to PullPull Built-Up AHU’s - Design Through Construction
Below Grade Access “Last Opportunity”
“Stored” in Location in Assembled Sections-Protected
Shipped in “Larger” Sections “Shrink Wrapped”
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Percent Plan Complete Chart – Seeking Perfection
Baylor College of Medicine
2/10/1998
2/17/1998
2/24/1998
3/3/1998
3/10/1998
3/17/1998
3/24/1998
3/31/1998
4/7/1998
4/14/1998
4/21/1998
4/28/1998
5/12/1998
5/19/1998
5/26/1998
6/2/1998
6/9/1998
6/16/1998
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
53%
63%56% 56%
77%71% 73%
83%90%
85% 86% 84% 85%90% 88% 88% 90% 92%
PERCENT PLAN COMPLETE
PPC
P
erce
nt P
lan
Com
plet
e
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Cumulative Root CausesTrend of Unsatisfied Scheduled Items
0
1
2
3
4
5
6
7
8
9
10
2/11/02
2/18/02
2/25/02
3/4/02
3/11/02
3/18/02
3/25/02
4/1/02
4/8/02
4/15/02
4/22/02
4/29/02
5/6/02
5/13/02
5/20/02
5/27/02
6/3/02
6/10/02
6/17/02
Date
Num
ber
of W
eekl
y U
nsat
isfie
d It
ems
Sched. AccuracyReworkEqpt. Del.Make ReadyMat'l Del.Outstanding SubmittalsOutstanding RFI'sManpower
Trend of Unsatisfied Schedule Items
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Using Tools – Last Planner
50%
25%
10%
90%
75%
Timestart completion
Construction Industry Norm
Saves Time (10-20%)Saves $ (3-10%)
When Reliability Increases
Relia
bilit
y
LOS
©Linbeck/Jose Solis - Proprietary & Confidential Slide 36
Where Are We Going? – Remove Systemic WasteWith an ever-changing economy
1900
Informal“favoritism”
Design Bid Build
2000
Under-Bid Litigation
Design Build/CMAR
2010
Under Cut Fees/Market
Value
Lean/Integrated Contract
Future
Problem?
Solution?
Problem:
Solution:
©Linbeck/Jose Solis - Proprietary & Confidential Slide 37
Systemic Waste
Project Delivery System – Contracts Systemic nature of industry Project breakdown Litigation (shift of value) Overcome Devalued Market Overcome National debt
Remove with IPD agreements/relationships
©Linbeck/Jose Solis - Proprietary & Confidential Slide 38
©Linbeck/Jose Solis - Proprietary & Confidential Slide 39
Production: · Under · Over · Untimely
Performance : · Non · Under · Over · Untimely
Change:· Scope · Conditions · Errors · External
Discrete Waste
Systemic Waste
Capital Fa c ility Procurement and
Production System s
Synergistic Waste (Affecting stockholders)
Owner
Designers
Contractor
Trade Partners
Waste Types: Discrete, Synergistic, Systemic
25
Discrete Waste (+) Synergistic Waste (x)(Affecting Stockholders)
Systemic Waste (xn)
• Project Delivery System – Contracts• Systemic nature of the industry• Project Breakdown • Litigation (shift of value)• Devalued Market• National Debt
©Linbeck/Jose Solis - Proprietary & Confidential Slide 40
Integrated Project Delivery
50%
25%
10%
90%
75%
Timestart completion
Construction Industry Norm
Saves Time (10-20%)Saves $ (3-10%)
When Reliability Increases
Relia
bilit
y
LOS
IPD
©Linbeck/Jose Solis - Proprietary & Confidential Slide 41
Questions?