THE CASE FOR LEAN CONSTRUCTION THE ARDMAC STORY

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2 THE CASE FOR LEAN CONSTRUCTION THE ARDMAC STORY October 2018

3 CONTENTS INTRODUCTION WHY LEAN? WHAT IS LEAN? LEAN PROCESSES INTEGRATED PROJECT DELIVERY LEAN & TECHNOLOGY THE FUTURE FOR ARDMAC SUMMARY Lean Construction The Ardmac Story October 2018

4 Introduction About Ardmac

5 WHO WE ARE An international construction specialist delivering complex high value workspaces and technical environments. Lean Construction The Ardmac Story October 2018

6 ARDMAC IN NUMBERS Lean Construction The Ardmac Story October 2018

7 OUR BUSINESS We work in four key areas: FIT OUT CLEANROOMS DATA CENTRES REFURBISHMENT & CONSTRUCTION Lean Construction The Ardmac Story October 2018

8 OUR MANTRA Excellence in everything we do

9 OUR GUIDING PRINCIPLES SAFETY FIRST UNDERSTAND OUR CUSTOMERS RESPECT ALWAYS EXCELLENCE AS A STANDARD DELIVER OUR BRAND PROMISE Lean Construction The Ardmac Story October 2018

10 Lean Awards 2018

11 Why Lean? Productivity, Efficiency, Client demand & Development of our Guiding principles

12 WE NEED TO EDUCATE OURSELVES LCI events Green & Yellow belt training Research Help from service providers Formation of the Lean Governance Team CENTOCOR Lean Construction The Ardmac Story October 2018

13 What is Lean? Core Principles, Leadership & Practice Requirements

14 WHAT IS LEAN? Lean is a concept that all processes contain waste Lean to Ardmac is... Working together Working Smarter ( not harder..) Reducing the 8 wastes - TIMWOODS Removing obstacles that prevent workflow Working safely Getting it Right First Time Always looking to do it better Lean Construction The Ardmac Story October 2018

15 5 CORE LEAN PRINCIPLES Lean Construction The Ardmac Story October 2018

16 KEY LEAN LEADERSHIP REQUIREMENTS Understand the philosophy of lean and lean principles. Demonstrate their commitment, as lean integration can take years. Demonstrate their willingness to change and more importantly their ability to change. Create a learning culture where collaboration and innovation are encouraged. Assign Resources. Lean team or Lean Champion at a senior level. Include lean policies as part of the organisation strategy. Leaders become coaches. Ideally focus on lean tools when the above steps are achieved. Lean Construction The Ardmac Story October 2018

17 LEAN PRACTICE REQUIREMENTS People Technology Drivers for change are now internal & external but are driven from Inside our organisation Lean practice requires a cultural shift: Process 90% People 10% Tools (Technology & Process) Lean Construction The Ardmac Story October 2018

18 Lean Processes System, Work Plan & Successes

19 LAST PLANNER SYSTEM Weekly Work Planning Weekly Planning Weekly Constraint Identification Daily Huddle Weekly Review Lean Construction The Ardmac Story October 2018

20 OVERALL PERFORMANCE TO DATE Lean Construction The Ardmac Story January 2018

21 LAST PLANNER SUCCESSES WITH LAST PLANNER (Project 1) V WITHOUT LAST PLANNER (Project 2) SAFETY Zero first aids or near misses on the Project 1 DEFECTS PER 50K Reduced from 9 defects at client walkdown on Project 2 to 3.4 on Project 1 LABOUR RATIO ACTUAL:BUDGET Reduced labour to budget ratio (circa 10% reduction) on Project 1 MARGIN ACTUAL:BUDGET UNPLANNED STOPPAGES PER 50K TEAM ETHOS Greater Margin on Project 1 Unplanned stoppages on Project 1 were less than 2 per 50K works complete Subjectively more Positive on Project 1 with less Frustration Lean Construction The Ardmac Story October 2018

22 6S METHOD SORT Eliminate Unnecessary items from the workplace Remove: Obsolete/ expired procedures Damaged/ expired inventory Defunct/ old equipment SET IN ORDER Arrange items so that they are easy to use, find and put away Utilize: Colour Coding Separate bins Visual Management SHINE Keep the items and work area neat and clean. Clean: Dirty tools and equipment Spills and leaks Clutter and Mess STANDARDISE Create a consistent approach to tasks and procedures Create: Work instructions Hazard warnings Equipment / tool labels Process Diagrams SUSTAIN Make a habit of maintaining the correct procedures Continue to: Emphasis on cooperation Communicate clearly Support innovation SAFETY Eliminate Unnecessary items from the workplace Ensure to: Identify and eliminate hazards immediately Communicate Safety Ethos Achieve Safety Together Lean Construction The Ardmac Story October 2018

23 6S CASE STUDY 13,000 m² Cleanroom Ceiling Increased installation rate from 165m² per day to 300m² per day. Reduced number of forklifts in use from 1 to 2. Labour saving of 120,000 Plant saving of 3,500 Schedule saving of 5 weeks. Traditional V 6S Methods 2 of the same site activities observed using Direct Observation. One used 6S methods and the other did not. 14% increase in Value Add - 29% up to 43% 7% reduction in Necessary Non Value Add 28% down to 31% 7% reduction in Waste. Down to 26% Lean Construction The Ardmac Story October 2018

24 Integrated Project Delivery (IPD)

25 DRIVERS FOR IPD Increased client value. Early specialist knowledge at project design stage. Focus on overall improvement integrating processes, tools and people in one system. Better working relationships Creates contractor buy in to target value delivery through incentivisation. Improvement across all key measurable metrics (Safety, Quality, Cost, Schedule). Reduces waste Lean Construction The Ardmac Story October 2018

26 OUTPUT OF IPD Team of project constituencies being open and collaborative. Process is concurrent, project life cycle orientated, collaborative with shared information. Collectively shared and managed risk. Performance and value base compensation. Technology is object orientated, data is centralised and a shared model is in place Lean Construction The Ardmac Story October 2018

27 BENEFITS FOR IPD Reduced variation and claims. Elimination of waste and duplication Transparency and trust Integrated team ethos leave project delivery easier. Contractor incentive when target achieved. Improvements in Key measurable metrics (Safety, Quality, Cost, Schedule). Long term relationships gained Lean Construction The Ardmac Story October 2018

28 BARRIERS/RESISTANCE The barriers we have encountered when attempting to reduce waste include: Current contracts don t support lean practices. The culture in (parts of) the Construction Industry. The classic list of seven wastes in not fully relevant for construction. Projects are quick, complex and uncertain so waste reduction is complex. The low degree of stability and repetitiveness prevents flow Short term relationships and fragmented supply chain The role of the Construction Manager too busy to step back and review the project The Most Dangerous Kind of Waste is the Waste we Don t Recognize Shiego Shingo Lean Construction The Ardmac Story October 2018

29 Lean and Technology Synergy

30 LEAN and Technology Lean Construction Principles BIM PROJECT MANAGEMENT PLATFORM DIGITAL CONSTRUCTION TECHNIQUES PEOPLE & SKILLS Cloud Based Collaboration Standardization Waste Reduction Vr & Ar To Improve Understanding Common Data Environment Field Management Digital Capture Of Information Est. 50k Manhour Saving For 2019 Risk Assessments Laser Scanning 4D Sequencing Last Planner App Design For Manufacture And Assembly (DFMA) Training And Upskilling Computer Based Training Continuous Improvement Lean Construction The Ardmac Story October 2018

31 Future For Ardmac Excellence in Everything we do

32 THE FUTURE FOR ARDMAC Educate all our staff Leaders as coaches Last Planner roll out across the organisation Lean Governance Team put in place to aid measurement and development. Integration of lean culture across the organisation. IPD development. Shingo model implementation as part of our strategy. Digitize all process across the organization. Lean Construction The Ardmac Story October 2018

33 SUMMARY The Question is no longer Why Lean?, it's Why not Lean?. Leadership & drivers for change. Lean development required us to focus on our people. Implementation of technology and where we can find help with this. Communication of quick wins. The future is bright. Technology and Lean will be at the centre of everything we do. Lean Construction The Ardmac Story October 2018

34 Ardmac