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LCI Michigan Chapter – Featured Speaker Meeting

Lean Project Delivery: Eliminate Waste ‐ Add Value; Countryside Senior Apartments Case Study. y p y

Afshan Barshan, Skender Construction

Nov 18, 2010Kellogg Conference Center • East Lansing, MI

LCI Michigan Chapter

Meeting AgendaMeeting Agenda

• 5:00 – 5:15 pm Registration5:00 5:15 pm Registration

• 5:00 – 5:30 pm Dee Cramer Sponsored Drinks Bar

• 5:15 – 6:30 pm Networking Dinner5:15 6:30 pm Networking Dinner

• 5:30 – 5:45 pm LCI Michigan Overview & Updates

• 5:45 – 7:00 pm Lean Project Delivery – Afshan• 5:45 – 7:00 pm Lean Project Delivery – AfshanBarshan, Skender Construction

• 7:00 – 7:45 pm Key Takeaways and Questions7:00 7:45 pm Key Takeaways and Questions

• 7:45 – 8:00 pm Plusses / Deltas for the Meeting

Nov 18, 2010 Kellogg Conference Center • East Lansing, MI2


Role of LCI ChaptersRole of LCI Chapters

Create a new common sense for theCreate a new common sense for the Architecture‐Engineering‐Construction (AEC) industry while supporting the mission of LCIindustry while supporting the mission of LCI.

‐ Communities of Practice ‐Communities of Practice



Mission of LCI ChaptersMission of LCI Chapters

• Provide a regional forum for conversationsProvide a regional forum for conversations among practitioners

• Understand what we know as a community• Understand what we know as a community

• Identify what we don’t know as a community

• Find new ways of working together



LCI Chapter StructureLCI Chapter Structure

LCI Michigan Organizing

C G

Events Dennis Bishop (Chair)Chad Stirrett (Chair)

Membership

LCI Michigan Organizing Committee Structures as of 11-18-2010

Core GroupCo‐Chairs

Remo MastroianniBob Mauck

MembershipIsis Tomik (Chair)

R&DGerald BoernerGerald Boerner

(Chair)

FinanceMatt Pulick (Chair)

• Core Group Meetings

Matt Pulick (Chair)

Historian Tariq Abdelhamid

MeetingsNov 18, 2010 Kellogg Conference Center • East Lansing, MI

5


Core Group MembersCore Group Members1. Brian Arbuckle (Detroit Edison) 16. Sam Jain (Enovio)

as of 11-18-2010

2. Harvey Berman (Bodman, LLP) 3. Dennis Bishop (Roncelli)4. Gerald Boerner (Clark)

kl

17. Tom Knoll (Dow Chemical)18. Brad Laackman (Case Systems) 19. Remo Mastroianni (Walbridge)20 Bob Mauck (Gh f i A i t )5. Steve Coakley (Detroit Edison)

6. Matt Cramer (Dee Cramer)7. Mohamed El‐Gafy (MSU) 8 Samir Emdanat (Ghafari Associates)

20. Bob Mauck (Ghafari Associates)21. Matt Pulick (Walbridge)22. David Robson (Walbridge) 23 Dan Rooney (Christman)8. Samir Emdanat (Ghafari Associates)

9. Tom Fletcher (Pfizer) 10. Kirk Frownfelter (Skanska) 11 Joyce Hess (USACE)

23. Dan Rooney (Christman)24. Al Smith (Proservices)25. Chad Stirrett (MSU)26. Chris Thronson (Skanska)11. Joyce Hess (USACE)

12. Art Theuch (Christman)13. Steve Hunt (Dee Cramer)14. Brindley Byrd (Michigan Construction Career

)

( )27. Isis Tomik (Johnson Controls)28. Michael Vandemaele (Proservices)29. Melissa Villarreal (Walbridge)

Council)15. Tariq Abdelhamid (MSU)

30. Mark Sands (Performance Building Institute)

6Nov 18, 2010 Kellogg Conference Center • East Lansing, MI


LCI Michigan 2011 Calendar (tentative)



LCI Chapter StructureLCI Chapter Structure

• Membership at LCI Michigan vs LCI NationalMembership at LCI Michigan vs. LCI National

• Chapter Documents:htt // l t ti / h t ht #– http://www.leanconstruction.org/chapters.htm#Michigan

R d R bi !!• Round Robin!!


Lean Project Delivery: Eliminate Waste ‐ Add Value;Lean Project Delivery: Eliminate Waste Add Value; Countryside Senior Apartments Case Study.

Afshan Barshan, LEED APSenior Project Managerj g

Skender Construction



About the Speaker!• Afshan Barshan has been with Skender Construction for over five years, and possesses over fifteen years

experience in construction management As Senior Project Manager Afshan Barshan is directlyexperience in construction management. As Senior Project Manager, Afshan Barshan is directly responsible for leading the project management team and overseeing various healthcare related and mixed use residential projects. He continually cooperates with the owners and their representatives, keeping them informed of construction progress, and on negotiated projects, advise them of actual costs versus budget on a regular basis. He holds a Master of Science Construction Management from Michigan State University. His areas of concentration at Michigan State were focused on project scheduling, construction estimation and lean construction. Afshan is an active member of the Lean Construction Institute (LCI) and reviews research papers for Lean Construction Journal.

i k d i f h h l d f• Prior to Skender Construction, Afshan Barshan was employed at Neumann Homes Inc. as a Manager of Production. While at Neumann Homes, he was responsible for a 960 home site project averaging a closing rate of three to five homes a week. Originally residing in India, Afshan Barshan acquired experiences as Quality Control and Assurance Manager working on several high rise residential and commercial projects.

• Afshan’s speaking experiences includes seminars on Lean Construction Techniques at Michigan State University, Northwestern University for graduate and undergraduate courses.



• Questions after presentation:– Please discuss the Life Cycle Cost Benefits Analysis performed in this project.

– How did you validate the duration estimates given by the Specialty trades during the Master/Phase Scheduling phases?

– Discuss how the Target Cost was determined.

– When is the best time to employ the phase schedule?

– What would be the Lean standard for the entire Organization?

– How was scope creep managed?

– Why wasn’t this project considered a Lean Project Delivery project, since it used an IFOA?

Plus Delta

Why wasn t this project considered a Lean Project Delivery project, since it used an IFOA?

– How can we get the “right” price in a world of low price?

– Is there a lean approach to dealing with municipalities?

Plus Delta

Food Relevant Topic Eat Earlier More Owners

Depth in topic On Schedule More Municipalities

Different time for eventMunicipalities event

Sponsored Drinks Format (think ofpanels)

11

by Chapter Historian

Lean Project Delivery:Eliminate Waste – Add ValueEliminate Waste Add Value

Case Study:Case Study:Countryside Senior Apartments

By: Afshan Barshan

ObjectivesObjectives

• Concepts and benefits of Lean Project Delivery• Concepts and benefits of Lean Project Delivery

• Concepts and benefits of target costing• Concepts and benefits of target costing

• Lean Construction preplanning and productionLean Construction preplanning and production management approach and its benefits

Changing ParadigmChanging Paradigm

“Adapted by T. Abdelhamid (2007) from Vanegas, J.A., DuBose, J.R., and Pearce, A.R. (1996). “Sustainable Technologies for the Building Construction Industry.” Proceedings, Symposium on Design for the Global Environment, Atlanta, GA, Nov. 2 - 4.”

“Owners are beginning to see how their ownOwners are beginning to see how their own approaches to construction can actually fosterinefficiency and raise costs or in contrastinefficiency and raise costs -- or, in contrast,how the right strategy can create the kind ofcollaborative and open working environmentcollaborative and open working environment

in which jobs are done quickly and done right”

CMAA Executive Director Bruce D’Agostino

Owners Top Concerns (CMAA 2005)Owners Top Concerns (CMAA 2005)

• Trust and integrity in the construction process Trust and integrity in the construction process

• Coordination/Collaboration among team members

• Improved relationships between contractors, CM staff, ..designers and final users

• A/E consciousness of the cost to build their designs

• Bringing contractors, subs, and suppliers on board during ..the design phase

Owners Top Concerns (CMAA 2005)Owners Top Concerns (CMAA 2005)

• Scope control/communicating a clear work scope• Scope control/communicating a clear work scope

• Providing drawings that are more complete to build the projectg g p p j

• Owner responsibility for the process

• Owner decision-making responsiveness

• Attaining good project definition

Countryside Senior ApartmentsCountryside Senior Apartments

• HistoryHistory• Project Description

Lean Project Delivery System

Purposes

PROJECTDEFINITION

Operation MaintenanceAlteration

Decomm.

USE

Design CriteriaCommiss‐

ioning

Work StructuringProduction Control

Design Concepts

Installation

Process Design

LEAN DESIGNProcurement

InstallationLEAN

PRODUCTION

Product Design

DetailedScopes/

Engineering

Logistics

LEANSUPPLY (adapted by Afshan Barshan, after Ballard

( 2000) and Abdelhamid (2008)

Lean Project Delivery SystemLean Project Delivery System

Last Planner ™ Systemy

W k S iWork StructuringProduction Control

Project Definition

Purposes

PROJECTDEFINITION


Decomm.

USE


ioning


Design Concepts

Installation

Process Design


InstallationLEAN

PRODUCTION

Product Design

DetailedScopes/

Engineering

Logistics



Project DefinitionProject Definition

• Owner’s goalsOwner s goals

IHDA i t• IHDA requirements

• Municipal requirements

LEED Project ChecklistLEED Project Checklist

Site Plan Version 1

Elevation Version 1

Final Site Plan

Final Elevation

Lean Design

Purposes

PROJECTDEFINITION


Decomm.

USE


ioning


Design Concepts

Installation

Process Design


InstallationLEAN

PRODUCTION LEANDESIGN

Product Design

DetailedScopes/

Engineering

Logistics



Target Costing : What is it?Target Costing : What is it?

Cost management technique used in project design• Cost management technique used in project design ..process

• Prioritizing where budgeted dollars are best spent

• Input to the design process, not as an outcome of designInput to the design process, not as an outcome of design

• Reducing cost during the design phase through constant monitoring..monitoring

Target Costing : The Cardinal RuleTarget Costing : The Cardinal Rule

Th t t t f j tThe target cost of your project can never be exceeded

Overview of Target Costing ApproachOverview of Target Costing Approach

V lV lEstablish

The

Target Cost

Establish

The

Target Cost

Component

Level Target

Costing

Component

Level Target

Costing

Value

Engineering &

Analysis

Value

Engineering &

Analysis

Monitor

Design

Monitor

Design

yy

Establishing Target CostEstablishing Target Cost.

EstablishEstablish ComponentComponent Value

E i i

Value

E i iMonitor Monitor

The

Target Cost

The

Target Cost

Level Target

Costing

Level Target

Costing

Engineering &

Analysis

Engineering &

Analysis

DesignDesign

• Market driven

• Expected revenues/income from the development

• Proforma creates the structure for determining the target cost

• Team discussion

Component Level Target CostingComponent Level Target Costing


E i i

Value


The

Target Cost

The

Target Cost

Level Target

Costing

Level Target

Costing

Engineering &

Analysis

Engineering &

Analysis

DesignDesign

• Individual target costs : assemblies, components and systems

T t l f t l l t t t t t l t t t• Total of component level target costs = total target cost

• Disciplined design and construction teams

Decomposing Into ComponentsDecomposing Into Components

Substructure

Shell

Interiors

Services

Equipment & Furnishings

Building SiteworkBuilding Sitework_________________________

Building Subtotal

Decomposing Into Components

Substructure


Substructure

Shell

Interiors

Services

Equipment & Furnishings

B ildi Sit kBuilding Sitework_________________________

Building Subtotal


Shell


ShellFloor Construction: $14.38/Sq Ft

Roof Construction: $13.49/Sq Ft

Exterior Walls: $58.23/Sq Ft

Exterior Windows: $38 08/Sq FtExterior Windows: $38.08/Sq Ft

Exterior Doors: $22.89/Sq Ft

$Roof Coverings: $24.42/Sq Ft

Apply Value Analysis TechniquesApply Value Analysis Techniques


E i i

Value


The

Target Cost

The

Target Cost

Level Target

Costing

Level Target

Costing

Engineering &

Analysis

Engineering &

Analysis

DesignDesign

• Achieve its necessary functions and characteristics

• Required function and quality at an acceptable cost

• Satisfies the end users at an acceptable cost

Apply Value Analysis TechniquesApply Value Analysis TechniquesExterior Walls: $58.23/Sq Ft

Functions

• Support Loads

• Resist fire for a certain amount of time – 2 HR UL

• Meet IHDA minimum R-value of R-21…R 21

• LEED criteria

• QualityAt l t 50% f b i k• At least 50% face brick

• Metal composite panels

Exterior Wall System Analysis

Exterior Wall System AnalysisExterior Wall System AnalysisExterior Wall Material Thick (in.) R-value $/SF (wall area)Brick and block w/ rigid insulation in cavity and foam

Utility Face Brick 3 5/8 0.39 $ 28.00

Ai / i id i l ti 1 3/4 0 92 $ 1 50insulation in stud space Air space/rigid insulation 1 3/4 0.92 $ 1.50

8" CMU 7 5/8 1.11 $ 12.00

Spray Foam Insulation (R=6.4/in.) 3.5 22.40 $ 5.00

Gyp. Bd. 5/8 0.45 $ 1.60 yp $

Total 17 1/8 25.27 $ 48.10

Exterior Wall Material Thick (in.) R-value $/SF (wall area)Alum. panel, rigid insulation and concrete block backup w/ foam insulation in stud space

Aluminum panel system 1/2 0.00 $ 50.00

Air space 3/4 0.39 $ -

Gypsum sheathing w/hat channels 5/8 0 45 $ 3 85Gypsum sheathing w/hat channels 5/8 0.45 $ 3.85

8" CMU 7 5/8 1.11 $ 12.00

Spray Foam Insulation (R=6.4/in.) 3.5 22.40 $ 5.00

Gyp. Bd. 5/8 0.45 $ 1.60

Total 13 5/8 24.80 $ 72.45

HVAC System ComparisonHVAC System Comparison

Alternate # Equipment Options Installation Cost Energy Cost Energy Savings

1 PTAC w/baseboard $ 1,092,000.00 $ 19,948.00 30.90%

2 Heat Pump w/Cooling tower $ 960,000.00 $ 20,840.00 27.50%

3 PTAC w/Electric heat $ 720,000.00 $ 20,622.00 28.90%

4 Geo-Thermal Heat Pump $ 2,010,000.00 $ 17,486.00 39.40%

DBHMS, 2008

Monitor the DesignMonitor the Design..


E i i

Value


The

Target Cost

The

Target Cost

Level Target

Costing

Level Target

Costing

Engineering &

Analysis

Engineering &

Analysis

DesignDesign

• Apply “The Cardinal Rule”

• If target costs increase somewhere, reduced elsewhere by g yan equivalent amount

• Stop the steady and relentless creep

• Ensure design details match estimate assumptions

• Continue to optimize value to ownerCo t ue to opt e a ue to o e

Countryside Budget DevelopmentCountryside Budget Development

$11 200 000

Overall Project Budget Overall Project Budget

$11,071,487

$10,600,000

$10,800,000

$11,000,000

$11,200,000

$10,120,164 $10,087,458

$10,024,102

$9,982,220 $10,000,000

$10,200,000

$10,400,000

$10,087,458

$9,818,398

$9,400,000

$9,600,000

$9,800,000

$9,000,000

$9,200,000

Lean Production & Supply

Purposes

PROJECTDEFINITION


Decomm.

USE


ioning


Design Concepts

Installation

Process Design


InstallationLEAN

PRODUCTION

Product Design

DetailedScopes/

Engineering

Logistics



Production ManagementProduction Management

Even if you’re on the right track, you’llget run over if you just sit there.g f y j

-Will Rogers

8 Forms of Waste8 Forms of Waste• Rework/Corrections

• Transportation

• Motion

• Waiting

• Inventory

• Overproductionp

• Overprocessing

U d tili d H R• Underutilized Human Resources

Three Key SchedulesThree Key Schedules

Phase LookaheadMaster Schedule Phase Schedule

LookaheadSchedule

Project Team Subcontractor Last Planners

Milestone Plan Six Week LookaheadPost it notesMilestone PlanCPM ScheduleBaseline ScheduleContract Schedule

Six Week LookaheadRotation ScheduleProduction ScheduleFormer 3 Week

Post it notesLean Schedule

Contract Schedule Former 3 Week Schedule

Master Schedule Phase Schedule

LookaheadSchedule

Master ScheduleMaster Schedule


LookaheadSchedule

Master Schedule ChecklistMaster Schedule Checklist

Project promise metProject promise metKey Milestones identifiedDeveloped by Project Teamp y jWeather Contingency consideredPhase Schedule developmentpProcurement ActivitiesDetail of ScheduleChanges to ScheduleOwner Confidence

Phase ScheduleMaster Schedule Phase

ScheduleLookaheadSchedule

Phase Schedule

Planning and thinking is “Actual Work”Planning and thinking is Actual Workand not “Non Value Added”

www.skender.com

PreparationMaster Schedule Phase


• Advance Invite Notices to come preparedConstruction Sequencing Plan

Preparation

• Construction Sequencing Plan• Milestone Poster

Key Intermediate tasks• Key Intermediate tasks• Agenda

The ProcessMaster Schedule Phase


• Specific Phase: Site, Shell/Core/Rough/Skin,

The Process

Finishes• Working meetings w/ subcontractors (Last Planners)• Challenge Master Schedule: Durations, Sequencing,

Logistics• Revise Master Schedule• Input Lookahead Schedules

The GoalMaster Schedule Phase


The Goal

• Finalize Durations

• Construction ..Sequence/ Logisticsq g

• Trade Commitments

Vendor ManagementVendor Management

E i• Experience

Attit d• Attitude

P i• Price

Precast/MasonryPrecast/Masonry Sequencing

3 weeks SAVED!!

Sub-Structure at Fountain ViewSub-Structure at Fountain View


LookaheadSchedule

Phase Schedule Check List

Milestones aligned w/ Owner’s expectation

Phase Schedule Check List

All Project Last Planners involvedSchedule ChallengedConfidence to meet the scheduleConfidence to meet the scheduleConstraints Identified (risks, uncertainty)Long lead procurementLong lead procurement Early/Late Completion accounted Coordination SynergiesRevise Master Schedule

Six-Week Look Ahead ScheduleMaster Schedule Phase


Six-Week Look Ahead Schedule

www.skender.com


LookaheadSchedule

The Purpose• Uniform Work flow sequence

The Purpose

• Work flow and capacity• Workable Backlog• Detailed work plans• Gauge progress and success• Short term coordination• Constraint Screening• Quality Milestones• Will vs. Can

Constraints ScreeningMaster Schedule Phase


Constraints Screening

• Evaluate activities for planned start • Activities made ready• Constraints

• Pre- requisite work• Purchasing / Material• Equipment/LaborEquipment/Labor• Submittals• RFI• Change Orders

• Issue Log

Six Week Look Ahead ScheduleMaster Schedule Phase


C t i tSix Week Look Ahead Schedule

Daily Tasks

Constraints

Tasks

MilestoneIssue Logesto e

Quality Milestone

Accountability builds ReliabilityMaster Schedule Phase


Accountability builds Reliability

Monitoring and UpdatingMaster Schedule Phase


Monitoring and Updating

Monitor – DAILY

Update – WEEKLY

Measure Success - PPC

Daily MonitoringMaster Schedule Phase


Daily Monitoring

Measuring SuccessMaster Schedule Phase


Measuring Success

100

Countryside Senior Apartments Planned Percent Complete

92

72

80

92 93

75 72 7278

7378

72

85 8490

6875 73 73 74

69

78 79

92

84 85

7276

86

65

8580

68

85

65

7875

89

78 76 7681

7166

77

6670

80

90

100

59

49

5865

61

49

58

40 40

32 3238

50

5965 64

61

53 5359

55

66 6460

66

41 40 40 4036

40

50

60

PPC

20 20

1217 19

15 16

3229 28

32

22 20 18

0

10

20

30

0

10/2

6/09

11/2

/09

11/9

/09

11/1

6/09

11/2

3/09

11/3

0/09

12/7

/09

12/1

4/09

12/2

1/09

12/2

8/09

1/4/

101/

11/1

01/

18/1

01/

25/1

02/

1/10

2/8/

102/

15/1

02/

22/1

03/

1/10

3/8/

103/

15/1

03/

22/1

03/

29/1

04/

5/10

4/12

/10

4/19

/10

4/26

/10

5/3/

105/

10/1

05/

17/1

05/

24/1

05/

31/1

06/

7/10

6/14

/10

6/21

/10

6/28

/10

7/5/

107/

12/1

07/

19/1

07/

26/1

08/

2/10

8/9/

108/

16/1

08/

23/1

08/

30/1

09/

6/10

Week PPC Activities

Our first PPC Celebration!!Our first PPC Celebration!!

Lookahead ProcessMaster Schedule Phase


E l d i i i

Lookahead Process

• Explode activities• Screen constraints

R d t k li i t t i t• Ready tasks - eliminate constraints• Uniform production

Update master schedules• Update master schedules• Learn - measure and improve

performance.pe o a ce

Quality ManagementQuality Management

• Daily Walks• Daily Walks• Component of Schedule

T i d P l• Trained Personnel• Management level to

labors• Zero Punchlist Goal

The Water Test StoryThe Water Test Story

Use

Purposes

PROJECTDEFINITION


Decomm.

USE


ioning


Design Concepts

Installation

Process Design


InstallationLEAN

PRODUCTION

Product Design

DetailedScopes/

Engineering

Logistics



Project Success Highlights

• High Performance

Project Success Highlights

Teamwork• Masonry/precast slab

structure through winterstructure through winter - 3 weeks gained

• 2 months before Contract CompletionContract Completion

• 5% under budget• Substantial Completion

= Final Completion• Trust and Integrity• Open CommunicationOpe Co u cat o

Lean Success

• Commitment

• Culture – Improvement = Change

• Partnershipp

• Clients

• Project Delivery (Conceptual to Completion)• Project Delivery (Conceptual to Completion)

• Attitude: If better is possible good is not h!!enough!!

Key Takeaways/Questions

Purposes

PROJECTDEFINITION

Operation Maintenance

AlterationDecomm.

USE


ioning


Design Concepts

Installation

Process Design


InstallationLEAN

PRODUCTION

Product Design

DetailedScopes/

Engineering

Logistics




• Questions after presentation:– Please discuss the Life Cycle Cost Benefits Analysis performed in this project.

– How did you validate the duration estimates given by the Specialty trades during the Master/Phase Scheduling phases?

– Discuss how the Target Cost was determined.

– When is the best time to employ the phase schedule?

– What would be the Lean standard for the entire Organization?

– How was scope creep managed?

– Why wasn’t this project considered a Lean Project Delivery project, since it used an IFOA?

Plus Delta

Why wasn t this project considered a Lean Project Delivery project, since it used an IFOA?

– How can we get the “right” price in a world of low price?

– Is there a lean approach to dealing with municipalities?

Plus Delta

Food Relevant Topic Eat Earlier More Owners

Depth in topic On Schedule More Municipalities

Different time for eventMunicipalities event

Sponsored Drinks Format (think ofpanels)

11

by Chapter Historian

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