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The application of Lean in the building of Timber Frame Structures.
IJM Timber Engineering Limited
Mr. Peter Mc Caughey, Managing Director Mr. James Mc Nabb, Director Team BDS & Board Member IJM.
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Presentation Overview
• Industry Background
• Our Process
• Getting the relationship right with all stakeholders – Get Lean right
• Lean projects – “focused on the delivery and construction element”
• Planning and scheduling for the delivery and building of units on time.
• Ensuring a smooth build process
• Ensuring full compliance with H&S and quality standards
• Dealing with issues and challenges immediately
• Comparing the “before” and “after” state, essentially showing the KPI improvements.
• The people aspects of this process.
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History
• Timber frame Ireland
– 90’s >1%
– Currently 25%
– Increasing 35-40%
• Regulations driving Thermal Performance
• Labour market driving
– Off-site construction
– Lack of on-site skills
• 1/3 of IJM Resources are On-site
• Established 1965 as Irish Joinery Monaghan
• Promoted to Timber Frame from 1965
– Manufacturing to inc. external joinery internal joinery, kitchens, stairs
• Kitchens – Discontinued 1990
• External Joinery – Discontinued 2001
• Internal Joinery – Discontinued 2008
• On-Site Erecting – 100% since 2012
Industry background
Now focused and Lean
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IJM Head Office Monaghan
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deliver projects better, faster, together
deliver projects better, faster, together
Student Accommodation & Apartments
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Residential Development
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Duplex Units & Terrace Houses
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Mixed Development
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Time
€ Sales
Resources/Costs
Profitable Growth
Why should IJM embark on such a journey.Why Lean Thinking? What are the Aspired Benefits?
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Understanding our customer characteristics sets the beat for IJM.“We listen to the voice of the customer”
• Solve my problem completely
• Don’t waste my time
• Provide exactly what I want
• Deliver value where I want it
• Supply value when I want it
• Reduce the number of decisions I must make to solve my problems
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IJM Lean Management Thinking
Specify Value
Map the value stream
Create flow & pull
Involve & Empower
Continuous Improvement
Answer the question of purpose
What do our customers want and what do we need?
Map your process & eliminate waste
Make value flow at the pull of your customers
JIT & not mass production to stock
Involve everyone train them how to solve their
problems
A continuous CI cycle
Apply the Lean Tool Box
A profitable Business
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Lean BPI
Working Smarter Not Harder
More + More
Less
Less Less Waste
More Value
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Focusing On WasteUnexploited Innovation
Transportation
Stock
Waiting
Over-production
Motion
Processing
Defects
Failing to use people’s abilities
Moving from A to B and back.Excess routes
Keeping any more than needed to do the job.Ordering the wrong materials
Waiting for materials, Drawings, designs
Producing the wrong product, rework.
Wrong information, Wrong drawings, Faulty product due to info.
Rework drawings, wrong specifications, scrap, quality, handling damage
Excessive motion needed to do task, excess site meetings, collecting reports.
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IJM Process
Quotation Order Arch. PlansApproval to
Manufacture
Eng. Drgs –
Walls, Floors, Roof
Manufacture DeliveryErect On-Site
Part A, B & C
Handover
Ancillary Certification
Tender ReviewContract Review
Sales Order | Review Design Review | Engineering Review
Value EngineeringStructural
Calcs.Fully managed Programme
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Build Time Start/ Finish Target
Scheduled Deliveries
Planned Production
Planned Procurement
EngineeringDesign Freeze
Voice Of The Customer - “Managed Programme”Procurement
Deliveries
4 week period
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Manufacturing lean initiatives
Planning
Productivity
OTIF
Quality
Costs
ERP
H&S
Overhead & Engineering lean initiatives
Planning
Engineering
Accounting
ERP
Org structure
Scheduling, delivery & construction lean initiatives
Planning
Scheduling
Transportation
Construction process
ERP
H&S
Quality
The lean business initiatives
Focus for webinar
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Partnership Model In Place For Operations ExcellenceIJM Team/On-site Partners
Was
Lacked a flow of projects
Lack of clarity
Lack of full planning
Subcontractor model
Now
Planned workflow
Transparent pricing
IJM Team approach
Partnership model
Customers
Was
Price driven
Erratic planning/vision of flow
Blame culture
Now
Value & service drive
Coordinated planning
Solutions and team culture
Suppliers
Was
Us and them
Hard nosed negotiations
Playing suppliers off
Confrontation
Now
Team models
Transparent pricing
Guaranteed supplies
Open book planning
“Win – Win for all”
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Before 2015
No real consolidated vision -
At the behest of the customers lack of planning
Reacting to constant change
Crippled with spreadsheets
Capacity loading inconsistent – lack of ability to plan
Current state
Fixed agreed plan with customers
Firm visibility on capacity in people hours/equipment/capability (internal & external)
Change management process –“Programme” agreement.
New Enterprise Resource management system installed
Clarity on capacity levels at all points in the supply chain
Future
Extend to UK customers
Increase capacity through continuous improvement.Providing more “off site” construction solutions e.g service areas within floors
With our strategic customers, through education/training help them createbetter programs from the outset.
Full end to end integrated system. (suppliers, customers, IJM resources)
Forecasting models for suppliers, but linked to customer demand.
Planning & Scheduling for the Delivery & Building of Units On Time
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Ensuring Full Compliance with H&S & Quality Standards
Before 2015
Certified QMS – but paper based, H&S process was not clear enough
Quality was responded to but somewhat “covering ones corner”
Inflexible in nature
Not enough of internal customer focus
Not enough of external customer focus
Wasn’t adding value
Current stateNew Certified ISO 2015 system in place covering all legal and optimum standards for quality. Health and safety CI in place
Ethos of continuous improvement embedded.
The company internally Audits the standards, but Quality and safety at source is the main feature.“Quality & Safety deployment”
Internal customer groups established, sales, engineering, manufacturing and building.
Ensure that Quality is maintained and continuous improvement is implemented.
Value rising each month, Cost of Quality/H&S decreasing
Future Maintain this, continuously improve and work towards a paperless environment.
Continue
Reduce cost of quality (poor quality)Reduce cost of H&S by investing at source.
Continue and further empower employees to deal with issues
Drive KPI’s and monitor / review internal audits. Get quality down to source.
Aspiring towards “near Zero”defects & incidents.
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Reduce H&S issues &
comply with all building regulations
Reduce complexity
Reduce costs
Reduce overall COQ
ISO 9001:2015IS440,
EN14250, EN1090
PEFC Chain of Custody
Environmental Mgt. System
Ensuring full compliance with industry standards – an integrated approach.
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Teamwork
Key Performance
measures keep us focused
Feedback/ complaints rated and root cause
pursued
Issues responded to immediately
Problems are exposed, not
hidden
Blame culture discouraged
IJM QMS, all actions are managed
Communication is highly rated
Dealing with Issues & Challenges Immediately(Culture)
deliver projects better, faster, together
Comparing the “Before” and “After”While Growing Rapidly As Well.
Key Measureable Pre 2015 Current State
Lead time (design freeze to build) 6-7 weeks 4 weeks
Inventory Turn 8 14
Inventory Accuracy 95% 99.5%
Within “internal budget” planned cost 89% 98%
Construction compliance 100% 100%
Health & Safety (incidents) -12%
On time in full delivery 92% 98%
Output per employee + 28%
Overhead cost reduction - 29%
Capacity + 200% and extra staff
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Training & Development
Lean at all levels – Black belt / green belt / Introductory.
Management andteam Training
Leadership training
ERP Training
Business Process Training
Communication
Clear meeting schedule
Clear communication process
Transparency
Win – Win
Measureable projects
Clear projects
Clear targets
Clear measures
Lean Roll Out & Training
“Keep it simple”
“Common sense prevails”
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Daily Tools to assist
Cross Functional Team RepresentativesProduction, Quality, H&S at shop floor level
Boards KPIs
Weekly
Operations Meetings with Business Unit Managers.Operations Planning Meetings
KPIsAction itemsPlans & VariancesMonthly
Management Team Meetings KPIs / Dashboard / Initiative Summaries
Quarterly
Department Team Meetings Objectives / Initiatives Templates
Business Unit manager / Face-to-face Meetings
Management Communication to many
Dashboard KPIs Initiative Templates
Comms Meeting Dashboard / KPIs / Initiative Templates
Annual (Senior Management team)
Strategic Planning Meetings
Annual Performance Review Meeting
Annual Company Objectives / Targets
2 Years
Daily Boards, at shop floor level
Cross-functional Improvement
Teams
Engagement & Communications Cycle
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Our Future !
Our Strategy is firm!
We have an excellent Customer base with strong relationships
We have a range of new Products emerging
We see major international Growth
We need additional new and energetic Resources
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Thank you for listening.
Questions & Answers.
www.ijmtimberframe.com
www.ijmtimberframe.com
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Overview of Lean Construction Ireland
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WHO WE ARE…Lean Construction Ireland is an all-island, independent, and not-for-profit association whose members passionately believe that Lean Thinking & Practices can enable and sustain enhanced effectiveness, efficiency, productivity, and profitability for the Irish Construction Sector, Clients, and Supply Chain.
WHAT WE DO…Lean Construction Ireland leads a community of learning and practice that promotes the application of Lean Thinking & Practices throughout the Irish Architecture, Engineering, Construction (AEC) sector so as to realise value-add for all stakeholders in the value chain. It supports the open exchange of knowledge, information, and experiences around good practices and case studies. It also supports ongoing research into Lean practices nationally and globally, their application to AEC, and their sharing with the wider Lean Construction Ireland Community. It is aligned to LCI USA.
CORE VALUES…Collaboration. Leadership. Teamwork. Commitment. Knowledge. Innovation. Integrity.
VISION…Deliver Projects Better, Faster, Together
STAKEHOLDERS… Public & Private Capital Project Clients & Owners. AEC Supply Chain. AEC Representative Bodies & Agencies. AEC Professional Bodies. AEC Academics. Lean Construction Trainers & Consultants. Lean Business Ireland. Ireland Inc.
OBJECTIVES…To achieve this Vision Lean Construction Ireland will: Promote the application of Lean Thinking & Practices in the Irish AEC sector. Develop a national network of members committed to the application of Lean
Thinking & Practices. Challenge the status quo of current project thinking and delivery methods. Advance amongst all stakeholders the business case for Lean Construction
knowledge and skills.
About LCI
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Contact LCI
www.leanconstructionireland.ie
www.linkedin.com/groups/4332330
www.facebook.com/leanconstructionireland
twitter.com/lci_ireland