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1 Please comply with the Lean Construction Institute s Usage Policies and Attribution Guidelines at when using this file. Thank you.

2 Intro to Reverse Phase Scheduling During The Design Phase Introduction To Lean Design Conference Lean Construction Institute Cascadia Chapter September 8 George Zettel Turner Construction Co. Copyright Turner Construction Co. 8 Collaborators Bryan Beischel Kevin Flannery Kristen Hill Allan Mossman Greg Smith Mike Sweeney Patrick Vasicek Ken Walsh Turner Construction Co. BMWC Constructors, Inc. Lean Project Consulting The Change Business Skanska Turner Construction Co. Art Anderson Associates Univ. Of Calif., San Diego Copyright Turner Construction Co. 8

3 Intro To Reverse Phase Scheduling Agenda Introductions Defining Reverse Phase Scheduling Waste In The The Design Phase Simulation Batch Size and Single Piece Flow Reducing Waste In Project Definition Exercise Start A Value Stream Map Questions Read More About It Copyright Turner Construction Co. 8 What are the Lean Principles? Value: define value from the eyes of the customer Value Stream: ensure that activities in the schedule or process add value for customer *Flow: Pull: seek smooth, continuous work flow bring the service, materials, and or labor when requested by customer Perfection: improvement Copyright Turner Construction Co. 8 create a culture of continual

4 Lean Product Development Lean Product Development System Skilled People Tools & Technology Copyright Turner Construction Co. 8 Process Integrated Project Delivery ( IPD ) Copyright AIA California Council 7 6

5 Integrated Project Delivery ( IPD ) Core Group Integrated Project Delivery Team Other Civil Site Mechanical Arch. PM End-User Rep. CM/GC PM Other Framing Structural Steel Mechanical Plumbing Plumbing Landscape Facility Planning Rep. Landscape Electrical Electrical 7 Current State Waste Waste in project definition and design Review Group s Input On Flip Charts From Monday and Tuesday 8

6 EXERCISE: List 8 Types of Waste Fill In Using Design Waste Examples From Group s Input On Flip Charts 9 What Are The 8 Types Of Waste?. Defects in materials / finished installation. Overproduction of materials or services. Inventories of goods awaiting process or use. Unnecessary processing. Unnecessary movement of people 6. Unnecessary transport of goods 7. Waiting by employees for equipment to finish work or for an upstream activity to complete 8. Under utilized talent

7 Batch Size Exercise: Hands - On Simulation team Design a core and shell of story medical office. Who will finish their design faster? [ Show of hands to pick A or B ] Team: Process: A. Work designers each with deliverables at one time. B. Work designers on deliverable at one time. Making Value Flow - Exercise Sign Your Name KEEP THE POST-ITS Together Run the exercise times. One person keeps time. Sign name legible like a business letter. Sign name on each of post-it notes then pass it to next team member.. Follow instructions from coach 6

8 Reducing Waste In Project Definition Solutions Leadership Style Contract types Value Stream Mapping +D, D, D, 6D Quality Function Deployment House Of Quality Budget Validation by Integrated Team Target Value Design Design Structures Matrix Last Planner System Use Value Stream Mapping Cardio Vascular Health Clinic Patient Journey Future State * NOW! Value Stream Map Copyright Lean Transformations Group 7

9 Value Stream Mapping Design Value Stream Mapping Results From Capital Projects Virginia Mason Hospital Seattle NOT building $6MM surgery suites 88 vs patients/day in same Sq. Ft. $MM avoided in Hyperbaric Chamber job NOT building $MM endoscopy suites Confidential Hospital Reduced new lab area by 8% Countless Examples see exhibits 6 8

10 Quality Function Deployment (House of Quality) Correlation Matrix Direction of Improvement General Area Description Company Design Requirements Individual Customer Requirements Customer Priority Customer Requirements vs Company Design Requirements Relationship Matrix Customer Assessment of Competitiveness Technical Difficulty Responsibility Customer Company Joint Objective Target Values Engineering Assessment of Technical Competitiveness Absolute Importance Relative Importance % Rank 7 Quality Function Deployment Source: International Group Lean Construction ( IGLC 7 ) 8 9

11 Budget Validation By IPD Team Sutter CPMC CH Benchmarked 9 hospitals Adjusted for time, geography, systems Set target to be % less than average of those 9 hospitals Defined target for each system 9 Target Value Design Utilizing Real-Time Estimating Design & Estimating are Concurrent All Parties Involved In Simultaneous Design And Estimating Pre-con SD DD CD Construction All Parties are in the conversation to: Design to Budget rather than Budgeting to Design

12 Design Structures Matrix (c) 8 Stan J. Tuholski, SE. All Rights Reserved Tel: 9-69 The Last Planner System How to increase FLOW A different way of structuring work to: Maximize value and minimize waste. Manage and improve overall performance. Establish a coordinated plan of action. Ensure full use of available resources. Encourage collaboration, cooperation and communication.

13 Collaborative Reverse Phase Schedules Owner, AE, Inspector, Turner, Subs use pull to plan Last Planner System Planning Is Conversation Planning, Controlling & Correcting PPC= Percent Plan Complete: measures how reliable the team s plan is.

14 Planning Is Conversation Always has been. The key to coordinate actions if You talk about the right things, and Create coherent commitments linking client value to the work of specialists, and coordinate this work to completion and client satisfaction. Reverse Phase Exercise Teams given folder of post-it notes Each note is an activity Activity Title Duration BLANK predecessor Create your network of commitments Example Of Pull 6

15 Why use Last Planner System? Produces smooth predictable workflow. Reveals constraints on system performance. Provides a basis for improvement. Creates capacity to do additional improvements. Builds accountability, judgment, and confidence. 7 Integrated Project Delivery ( IPD ) Copyright AIA California Council 7 8

16 Ideal Future State Fill In Blanks DET ID PR PR CON CRI B/A CL DET ID PR FAB CONST. Conceptualization Criteria Design Detail Design 9 Permit Review Implementation Documents Why change? Why improve? Earnings erosion Claims Injuries Defects In Quality

17 This job was the smoothest running job I ve ever been on and I know that the Lean phase schedule and look-ahead plan had a lot to do with it. John Jones, Turner Superintendent What s in it for me? Enjoy work more Stronger reputation from subs and peers Predictable work flow Defined standard tasks Less fire-fighting Safe: Injury free More profits to share Happier clients more apt to rehire or refer me Job security/satisfaction It s what you learn after you know it all that counts. John Wooden 6

18 Do, or do not! There is no try! Yoda Star Wars Episode V, The Empire Strikes Back Plus / Delta Meeting Plus ( What added value / helped you? ) Delta (What might we improve / change next time? ) 7

19 Exhibits and Resources No One Person Can Optimize All Aspects of a Modern Building 6 6 8

20 Contracts do not anticipate complexity 7 Typical Project Organization 8 9

21 Alternative / Integrated Project Delivery Facilitates ability for more lean process/results Self-formed teams engaged EARLY Sign one agreement (purest form) incentives Validate the Owner s budget linked to biz plan Target Value Design never ever exceed it Non-traditional work products for specialists 9 Integrated Project Delivery ( IPD ) Core Group Integrated Project Delivery Team Other Civil Site Mechanical Arch. PM End-User Rep. CM/GC PM Other Framing Structural Steel Mechanical Plumbing Plumbing Landscape Facility Planning Rep. Landscape Electrical Electrical

22 Small batch sizes - all deliverables Building Envelope M/E/P Structure Interior/ Finishes Group Leaders Site Improvements Vertical Transp. Material Handling Landscape Value: Owners Cost Control Owner s influence on capital project cost Shape of curve Per ASHE Heathcare Construction Certificate Program Student manual Not accurate Definition Const. Documents Reality: Decisions during definition have biggest impact.

23 Return On Investment Applying Lean Facility Design & Construction ~ % Operations ~ 9% Apply Lean here for biggest ROI Like an iceberg, biggest impact is not as visible. Cardio Vascular Clinic Improvements After Lean Value Stream Map Days 9% Better Before Lean Value Stream Map Wait Time Copyright Lean Transformations Group Used With Permission - 8

24 Cardio Vascular Clinic Improvements Patients per Month HYS Patients per Month 9% Better Months Q June/July Before Lean Value Stream Map After Lean Value Stream Map Copyright Lean Transformations Group Months What? Lean Approaches For Most Value Culture and Leadership Transformation Value Stream Map of owner s business PLUS Project Team s Processes Each Individual Companies Processes Alternative Delivery Qualification selection Target Value Design from day zero Small batch sizes for all deliverables Last Planner System in all phases Building Information Modeling 6 6

25 What are some lean construction techniques? Create a value stream map of owner s key business process use info to reduce Sq.Ft. Re-design areas / details for smooth flow Target Value Design; design to budget not visa versa. Release work to the next step by pull Reduce inventory, reduce waste, Use small batch sizes in pre-con and const. reduce cycle time, reduce waste Use Last Planner System for short interval scheduling. Reliable promises = smooth flow. 7 What are some lean construction techniques? Stop producing bad quality right away stop passing defects to next person: stop the line Make everyone responsible for quality Communicate and enable crew to see status real-time Level the workload at connected workstations Encourage and enable specialists to help one another as needed to maintain steady work flow (multi-skilling) Re-design components to enhance smooth flow 8

26 What constitutes lean construction? Value Steam Mapping Flow Leadership Commitment Leveling box Standardized work Experimentation Mock-ups First-run studies Smaller batch sizes BIM D/D/DDE modeling Waste elimination Continual improvement Integrated Project Delivery Target Value Design Training Within Industry TWI Last Planner System Master milestone schedule Phase planning (w/ Pull) 6 Week Look-Ahead Plan Constraint I.D. and removal Reliable promises Weekly Work Plans (WWP) Scoring reliability Learning Built-in quality whys find root causes S s - get organized 6 Sigma quality tools 9 Who advocates lean construction? Construction Users Round Table (CURT) Associated General Contractors (AGC) Design Futures Council Construction Management Association of America (CMAA) SMACNA Construction Industry Institute (CII) American Institute of Architects ( AIA ) Lean Construction Institute (LCI)

27 Proposal Schedule In contract w/ Owner + Subs Planning ensures smooth flow Baseline Schedule a Baseline + Actual Starts / Finishes + % Complete = Updated Baseline Turner Construction Co. / 8 Turner scheduling with the Last Planner System Updated Baseline Reverse Phase Schedule Added activities, changed durations, changed logic, changed sequence of work = Revised Baseline Developed collaboratively with all stakeholders in room at once. Covers a to month duration / group of activities. This is to plan work with more accuracy and detail than the Updated Baseline Schedule may show. Revised a Baseline b Six Week Look - Ahead Schedule c Use at weekly meetings Weekly Work Plan Review daily, score, learn Use discussions to coordinate work CUSTOMER Declare Satisfaction Thank you Preparation Assurance A project is a network of commitments!! Request Will you? Conditions of Conditions Satisfaction of satisfaction & Date AND of Completion date Declare Complete I m Done Clarification & Negotiation Performance Inquiry Negotiation Accepted Submitted PO Signed PROVIDER COMMIT I Promise I WILL 6

28 Planning with reliable promises Five questions to test quality of a promise: Am I competent to perform this task, or do I have access to this competence? Have I estimated the amount of time ( hands-on ) required for this work? Do I have the capacity (resources) available and allocated? Am I privately hoping someone else breaks their promise so I won t have to really keep my promise? Will I be responsible? Help clean up my mess? Just Do It! We will continue to be very aggressive in pursuing lean manufacturing practices, materials consolidation, focusing on style and SKU productivity, and gaining Supply Chain efficiencies. We look for every opportunity to squeeze more value out of the money we spend, and that means more value for consumers and for investors. President and CEO Mark Parker 7

29 Newport News Lean Enterprise: Leadership Commitment We will take these Lean concepts and apply them to everything we do, within and across every division and every department, to continue to provide superior value to the Navy. By elevating these concepts and deploying them across the Shipyard and beyond to our suppliers and customers we are making Lean our overarching process improvement philosophy and a key strategy element of our operating plan. Thomas C. Schievelbein President, Newport News Sector Memo to all employees, Jan. 9, Newport News Commitment to Lean Role of Management Transform the culture Top-down & Bottoms-up Use all available tools Process Owner / Sponsor Excitement about Lean Drive change in the organization Team Leader Question boundaries Keep team outside the box Drive success Facilitator Don t let up Drive the team to success Work with process sponsor to develop deployment strategy 6 8

30 Example documents 6 week Look ahead plan Weekly Work Plan Percent Plan Complete Trend Variance chart ( pareto ) 7 Current use of Last Planner System at Turner 9/8 6 projects with $. Billion volume projects with $MM vol. closed out market segments Healthcare, K-, Higher Ed., Govt./Institutional Menu Of Services Lean added 9/8 8 9

31 Productivity (Budget / Actual) Productivity using Last Planner Measure productivity: Percent Plan Complete (PPC). Below Budget (Making $$) At Budget Over Budget (Losing $$) PPC= ~ % Start Last Planner (PPC) is increasing PPC= 6% PPC= 86% Average Productivity before LPSI MONTHS 9 Master Scheduling Master Scheduling Set Milestones milestones Phase Scheduling Specify hand-offs Look-ahead Planning Make work ready & launch Weekly Work Planning Coordinate and make promises Learning Measure PPC, act on reasons for failure to keep promises Essential Conversations Are we confident we can deliver the project within the set limits? Who holds the promise to make this happen? Do we understand how we are going to do the work? Have we designed the network of commitments to make it happen? Are we confident we can deliver the milestone? Is the network of commitments active? Are reliable promises in place to make work ready in the right sequence and amounts to deliver the milestone? Are we confident the work will begin and end as planned? How will we coordinate and adjust? Have we promised our tasks will be done as planned or said no? What have we learned? What needs changing so we can improve our performance? Any new info that requires a change in our plan? Recovery? PPC= Percent Plan Complete= reliability 6

32 Collaborative Reverse Phase Schedules Using pull to plan the work to a key milestone. 6 Process steps: Reverse Phase Schedule Current Baseline Schedule Intro to Lean Turner Only * Define Milestone + list who needs to help make plan Invite Subs to Lean Intro Intro to Lean Turner + Subs Review Milestone+ review scope weeks after step All parties review plans, specs., costs, staffing All parties meet & create Reverse Phase Schedule 6 Post-it notes with activities keyed into schedule software 7 Team meets to review print-out and revise / agree Turner prints first 6 Week Look Ahead Schedule Repeat steps thru every to months 6

33 Process steps: Weekly Work Plans Each Subs foreman creates next week s Weekly Work Plan - Promises to finish tasks on specific days. Gives to Turner Wed. noon. Turner Eng. collects and consolidates the Subs Weekly Work Plans onto one document Wed. PM. Project Eng. meets with Supt.- Reviews Baseline Schedule, 6 wk look ahead, Subs Weekly Work Plans - Wed. PM Subs combined Weekly Work Plans discussed and coordinated at Sub. Coord. Meeting Thursday AM Revised plan is published and posted. Supt., Eng., and Subs carry and use WWP. 6 Supt. and subs daily stand-up mtg. min. at end of each shift to score, coordinate, & adjust plan 6 Collaborative Planning Using A Reverse Phase Schedule Meeting Start from right, work in reverse to left. Use pull to test predecessor sequence; To do this activity, I must have done first. Turner Construction Co. / 8 6 Chart for issues / action Chart paper on wall for posting team s plan Each company has different color post-it End of milestone at right Post-it note for activities Vertical notes indicate concurrent tasks Subs foreman and other stakeholders make plan Drawings, current schedules in the room

34 BIM: Advanced Applications - Laser Scanner Faro Optira Laser image taken by the scanner point cloud is post processed into a D model. Copyright Turner Construction Co. 8 6 Reaching a New Frontier: Leadership, Planning and Management Traditional Thought Leadership dictates direction Planning is partitioned by trades/disciplines and is linear. It is predictive and generally fixed, setting parameters for management Management controls are inflexible, autocratic - processes are fixed and measures are isolated and generally historical Lean Thought Leadership facilitates collaborative direction Planning is collaborative, project based and seeks to integrate efforts to eliminate negative iterations. It learns as project evolves Management develops a network of commitments to implement plan, evolves intelligence, measures are integrated and proactive 66

35 You are invited on the journey Best to learn by doing:. Begin by changing culture / leadership style w/ Study Action Team.. Make a comprehensive implementation plan use an A report.. Implement Last Planner System w/ coaching on a phase of or projects. Generate good experiences / results and excitement.. Continue with other Lean skills and culture changes Value Stream Map More Reading: The Toyota Way by Jeffrey Liker " The Goal " by Eli Goldratt, " Product Development for the Lean Enterprise Michael Kennedy Formal training: Lunch & Learn workshops at your job site / sub s office TCCo is member of the Lean Construction Institute - LCI - forming NW chapter - Cascadia Lean Project Consulting coaching LPC Greg Howell, Hal Macomber, Roberto Charron, Steve Knapp Univ. of Michigan; Univ. Cincinnati; Univ. of Kentucky; California State University San Diego; UC Berkeley; Stanford; Vanderbilt; ASU St. Thomas University MN; Univ. of Minnesota-Duluth; The Ohio State Univ. 67 Contact Information George Zettel Lean Construction Champion Turner Construction Company Thank you for this opportunity to discuss Lean! 68

36 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project USING QUALITY FUNCTION DEPLOYMENT (QFD) IN THE DESIGN PHASE OF AN APARTMENT CONSTRUCTION PROJECT Luiz Antônio Gargione ABSTRACT Quality Function Deployment-QFD is a powerful development methodology with a wide range of applications. This paper presents a simple case using QFD on the design phase of a Real Estate construction project as a tool of improvement for layout and features of a middleclass apartment unit. The main purpose of QFD in this study was to apply in construction a method of customer-oriented design used in other industries, and to adapt some of the tables and matrices proposed by Akao (99). Another purpose of this case study was to test the applicability of QFD in real estate projects managed and developed by small companies usually owner-operated. KEY WORDS Quality function deployment, lean construction, building design, building construction, the house of quality. Assistant Professor and Research Collaborator, IP&D, Instituto de Pesquisas e Desenvolvimento, Universidade do Vale do Paraíba, Av. Shishima Hifumi 9,.-, São José dos Campos-SP, Brazil, +() () 7-, fax: +() () 7-, Proceedings IGLC-7 7

37 Gargione INTRODUCTION Small construction companies that operate in the Brazilian real estate housing market are trying to improve the design development phase in their projects so that they can better satisfy the needs of the buyers and users, especially for new apartment buildings. Many companies dedicated to multiple-family construction agree that the most important aspect in the real estate market is the Value that they can provide to their clients. These companies understand the value for their customers in different ways. The term value means different things to different people. One approach to value calls for the buyers and users points of view. Value can be defined as the size of the residential unit in relationship with the price or the technical quality of the materials used in finish work or any other features of kitchen or bathroom. Value can also be understood as something that is appropriate for the money the buyer is investing for the new property. These companies also agree that the primary challenge for the new projects that they are developing is the balance between the perception and requirements of the buyers and users and the financial goals for these projects. These financial goals are typically translated into RoI (Return on Investment), Pay-back, IRR (Internal Rate of Return), speed of sales and cash-flow support. IMPORTANCE OF THE DESIGN PHASE The Design Phase for housing is responsible for achieving client s requirements and it is in this phase that the company needs to reach the standards of quality through drawings and technical specifications. The questions for any company are how to obtain the innovative solutions or information for developing new projects, and how to manage decision-making in a way that ensures the best possible results. These issues apply to the strategy for housing design. The search of a balance between external and internal inputs for the design phase was one of the goals of this study. Whatever method is used to design or develop a solution for the project, its success depends on how the company assimilates and manages the client s requirements. According to Webster s Third New International Dictionary, Value is the amount of a commodity, service, or medium of exchange that is the equivalent of something else: a fair return in goods, services, or money (the method of merchandising is to give the buyer good at the right price Wall Street Journal). In this case the company responsible for the project is involved in a development process composed by () land acquisition, () design and construction of the building, and () project sale. How long after development the company sells the residential units of the project depends on the market and the business strategy employed. The project has been an economic success if its market value exceeds the sum total of the land and additional development costs to complete it. It is in this sense that developers are said to create value July 999, University of California, Berkeley, CA, USA

38 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project WHY QFD? The study focused in a system capable of translating buyers and users needs into design requirements, and changing these requirements into critical characteristics and specific parts requirements. QFD (Quality Function Deployment) is a method for: a) developing a design quality aimed at satisfying the consumer, b) translating the consumers demand into design targets and major quality assurance points to be used throughout the production stage (Akao 99). The QFD system involves constructing one or more matrices containing information related to the others. The first matrix is sometimes referred to as the House of Quality and contains information about customer s needs and requirements. The objectives of using QFD in the project are: Define design and specifications for the residential units meeting the highest level as possible of customer requirements and satisfaction. Ensure consistency between customer requirements and product s measurable characteristics such as dimensions and features of rooms and finish materials used in the construction work. Ensure consistency between the design phase and the construction work. QFD can minimize the problems that usually are detected on the interaction between design and construction phases (including constructability problems and construction reworks). Optimize the integration of customers perceptions and variables that can affect the RoI (Return on Investment) such as construction cost, speed of sales, schedule and cash flow. Reduce the time to perform quality features throughout product development. QFD can be applied to the construction industry in different ways. Mallon and Mulligan (99) used QFD on a hypothetical renovation of a personal computer workroom. Armacost et al. (99) applied QFD to integrate the customers requirements in an industrialized housing component: a manufactured exterior structural wall panel. Serpell and Wagner (997) used QFD to determine preferences on the design characteristics of the internal layout of a building apartment. QFD was also applied to construction (Huovila et al. 997) involving different players working together in three construction projects: a structural design firm and two contractors. This research objective was to test the applicability of QFD to construction involving companies from different backgrounds. QFD was used as a tool in this case to prioritize important points that could offer a potential of improvement according to the clients requirements and needs. It was used specially to improve the basic layout and basic specifications of the middle-class apartment units of the project. However, some difficulties were identified during the use of QFD: The focus group didn t express clearly most of their opinions, needs and requirements. Substantial increase on the time expended by the project management team in planning and analyzing the data collected. Proceedings IGLC-7 9

39 Gargione Difficulties in working with large-sized matrix. It is hard to process the information inputted in the QFD matrix. CASE STUDIES These case studies apply QFD in the design improvement of a multiple-family apartment building located on an urban area of a mid-sized city in Brazil. The project includes 8 units of residential apartments in one tall building (thirteen floors) and the construction area was approximately, m (about, ft ). The estimated budget for this project was around US$. million. The basic layout of each unit includes bedrooms, bathrooms, living/dining room, kitchen, laundry and balcony. The developer of this project is a small owner-operated real estate development and construction company. OBTAINING INFORMATION FROM BUYERS AND USERS For this case two techniques were used for gathering information on customers needs and desires for the layout of the residential unit. The first technique adopted interviews with salespeople (real estate agents) who have a strong relationship with buyers and users. Another technique used was the Focus Group approach using mid-sized and small-sized groups, obtaining information through questions and benchmarking between different projects in order to find out likes, dislikes, trends and opinions about similar current and other projects. Different people including real estate agents, architects, engineers, potential buyers and owners of similar apartments composed the focus group. Some of the questions submitted to the focus group: What are your needs and requirements in this building? What do you like in the design of this apartment? What do you dislike in the design of this apartment? Which features do you think are most important in the layout of an apartment? Could you tell me which features are most important for you? Why? What do you think the most important features in the kitchen of this apartment are? Why? Choose three features. How do you like the bathroom? What do you think the most important features in the bathrooms are? Some of the important features chosen by the focus group: At least two entrances for the apartment unit: one by the living room and another by the kitchen. A large counter top in the kitchen to provide more space during the preparation of food or other tasks. Floor easy to clean in the kitchen and bathroom. Beautiful wood floor in the living and dining rooms July 999, University of California, Berkeley, CA, USA

40 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project DEVELOPING THE QFD MATRIX The QFD matrix used in this case was based on the House of Quality. It was developed by Clausing and Hauser (988), and it drives the marketing people, design engineers, architects and site engineers toward satisfying customers desires and preferences. IMPLEMENTING THE PERCEPTION OF FOCUS GROUP IN THE QFD MATRIX In order to obtain the list of WHATS customers requirements (Figure ) that will be applied to the project design, the focus group was interviewed after receiving information about other projects with units composed of,, and bedroom apartments. The focus group could evaluate different aspects of the current design and compare it with the projects of the competition or other previous owner s experience. For this purpose the group would use drawings and basic information from other projects (specifications, dimensions of compartments, finishing materials, electrical and water features, kitchen layout, etc.). After the benchmarking between the current project and the competition s projects, it was possible to establish the degree of importance of the design s solution (Figure ). WHATS Degree of Comparison competitors Customers Rating Customers' requirements Importance Proj. A Proj. B Proj. C Entrance Social entrance - other for Kitchen One Kitchen entrance Kitchen Large counter top - durable material Space for full size appliances Laundry Spacius laundry-full size appliances Dinning + Extra space for Stereo and TV Living roomspace for full size dinnig table Balcony One balcony w/ connection w/ Living Bathroom Master Bathroom with Bathtub Master Natural lighting and ventilation Bedroom Large counter top - durable material Heat water for faucet in the sink Bathroom Natural lighting and ventilation Large counter top - durable material Heat water for faucet in the sink Flooring Bath/kit/laund/w/ tiles easy to clean Dinning/Living w/ wood flooring Bedrooms with anti-allergic carpeting Walls Baths/kitchen w/ tiles-easy to clean Laundry easy to clean - water proof Bedroom/Din./Living-light color paint Windows Frames that don't leak-easy to clean Doors Social entrance w/ wood door decor. Kitchen doors easy to clean-smooth Internal doors easy to clean-smooth Special Telephone plugs in all rooms instalations VHF/UHF, cable TV read all rooms Emergency lighting - common areas Phone conn. main gate/other units Quality Heater-cheap maintenance Degree: - Worst to Best Figure : Customer Needs (WHATS) and Prioritized Needs and Analyzed Competitive Benchmarking Proceedings IGLC-7 6

41 Gargione The next step in this process is to develop the technical requirements for meeting the buyers and users needs. To reach this objective, a brainstorming section was used with the members of the design team. Brainstorming helped determining the improvements level and technical details for the design. All information developed in this phase was organized in the Technical Requirement Table- HOWS (Figure ). The design team should consider the movement of Target Values for improvement or optimization of the layout and features design. Technical Interactions: Strong Correlation Movement of Target Value: Increase - Small Correlation Without Correlation Decrease - Value must be attained One Social entrance separated from kitchen entrance One Kitchen entrance separated from Living/Dinning Large t Marble or Granite counter top in the kitchen More space in the kitchen for full size appliances More space in the laundry for full size appliances Add a multi-purpose space for TV and Stereo sound Increase the space of the Living/Dinning room for full size dinning table Reduce the number of balcony in the unit only one connected with Living Room Introduce a Bathtub in the Master Bedroom Bathroom Increase the size (area) of the window for natural lighting and ventilation Marble or Granite counter top in the bathroom Central gas heater system for each unit Increase the size of the window for natural lighting and ventilation Marble or Granite counter top in the bathroom Central gas heater system Flooring built with quality ceramic tiles Flooring built with hard wood floor material Thin Carpeting with anti-allergic quality Walls with ceramic tiles Epoxy painting in the laundry walls Acrylic Painting in light color pastel colors Aluminum frames with treatment in color black built according NBR... Door made in natural wood material with a wide size Conventional door smooth painting in color white Conventional door smooth painting in color white Telephone plugs in all rooms TV plugs and connection with UHF, VHF and cable TV ready in all rooms Emergency light with batteries and stand-by system Internal phone system connected with the main gate and other units Central gas system with protection and alarm for each unit Figure : Develop Technical Requirements (HOWS) and Correlation Matrix: Identify Technical Interactions July 999, University of California, Berkeley, CA, USA

42 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project By using QFD the design team could also evaluate some details of the layout and features during the development of the design. By using the roof of the QFD Matrix (Figure ), it was possible to examine the correlation among technical requirements. The roof of the House of Quality helps identify the interactions among the technical requirements and provide early recognition of positively and negatively correlated features with technical solutions defined by the design team. After the project design team has determined the technical solution directions, and had assigned the relative importance and weight to these solutions, the next step was to determine Target Values (Figure ) for the technical solutions agreed. Target Values Door with.9 x. mt. Door with.9 x. mt. Marble style/color... - Size at least.7 m long Increase. square meter Increase. square meter Area around. square meters ( +/-. sq. mt.) Area around 8. square meters ( +./-. sq. mt.) Decrease the number of Balcony - only one connected with the Living Small bathtub (max.. mt) Increase at least % in area of standard window Marble style/color... - Size. m long Faucet with Heat water (around 7 o Celsius) Increase at least % in area of standard window Marble style/color... - Size. m long Faucet with Heat water (around 7 o Celsius) Size. x. m, color Wood flooring width. - Specification... Thin Carpeting - anti-allergic - mm -specification... Size. x. m - model... Epoxy Painting - color - according NBR... Painting according NBR... mixing colors s Windows frame - model size Increase door size to.9 meter Increase door size to.9 meter Increase door size to.8 meter at least 6 telephone plugs at least TV plugs Install System Phillips... according to NBR... Install interphone in the kitchen, model... Gas heater - system... according to NBR... Figure : Target Values To complement the information for the Target Values definition, a technical analysis was developed as shown in the Technical Requirements: Relative Weight Chart (Figure ). Technical Comparison Competition Best Medium Worst N/A Project A Project B Project C Figure : Technical Requirements: Relative Weight Proceedings IGLC-7 6

43 Gargione QFD CORRELATION MATRIX By using the correlation between the customer needs (Whats) and the technical requirements (Hows), it was possible to determine strength of relationship and impact on the need (Fig. ). One important procedure during this phase was the second or third analysis of the blanked cells (no relationship correlation). When no relationship is detected during the evaluation, the design team should check again the HOWs versus WHATs and decide if the relationship will occur (blanked cells). Finally it was possible to identify and prioritize the most important requirements and needs for the new design of the project. Using the lower part of the House of Quality matrix, the level of importance of the design requirements was determined using the results of the Importance Weight and the Relative Weight of the Technical Requirements (Figure 6). D.I. MATRIX of CORRELATIONS Points Points Point Figure : Correlation Matrix - Technical Requirements (HOWs) correlated to Customer Needs (WHATs) July 999, University of California, Berkeley, CA, USA

44 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project Importance Weight Relative Weight (%) 9% 6% % % % % % % % % % % % % % % % % % % % % % % % % % % % % Figure 6: Importance Weight and Relative Weight of Requirements (%) DESIGN IMPROVEMENTS After obtaining the final results of the Importance Weight and the Relative Weight of the Technical Requirements, it was possible for the design team to prioritize and implement the new layout solutions and new features in the specification and design of the apartment unit. In the new design, it was necessary to increase or decrease some of the areas or shapes of compartments and to eliminate or add new specific solutions. Technical Requirements Level of Acumulated Design Solutions Importance Weigth (%) - Space for full size Dinning table % % Modify Lay-out of Living/Dinning Room and increase area >= 8 sq.mt. - one social entrance/other for the kitchen 9% 9% Create one social entrance separated from kitchen entrance - One kitchen entrance separated 6% % Create one kitchen entrance separated from social entrance - Space for full sized appliances in the kitchen % % More space in the kitchen - increase area in at least. sq. mt. - One balcony w/ connection w/ Living Room % % Decrease the number of balcony, eliminate the balcony of master bedroom 6- Dinning/Living Room w/ wood flooring % 8% Specify hard wood flooring in the finish of Living/Dinning Room 7- Extra space for stereo and TV % % Add a multi-purpose space for TV and Stereo 8- Bathtub in the Master Bathroom % 6% Introduction of Bathtub in the master bathroom 9- Spacius laundry w/ full sized appliances % 9% Increase the area of the laundry in. sq. mt. For full sized appliances - Social entrance w/ natural wood door % % Specify a door made in natural wood material w/ wide size in social ent. to - Other technical requirements 8% % Figure 7: Technical Requirements and Level of Importance The improvement of performance for the project in terms of design and features was evaluated by the project team measuring the differences of the design index before and after application of QFD. Table : Design Characteristics of the Apartment Unit before and after QFD Technical Index Before QFD After QFD Improvement Area of apartment (unit) 88. sq. meters 86.8 sq. meters. % Compact Shape Index 77.7 % 8.7 % 7. % A general view of the old version of the layout design and the new layout can be observed in Figures 8 and 9. Proceedings IGLC-7 6

45 Gargione Figure 8: Design Layout of the Apartment Unit Before QFD Figure 9: Design Layout of the Apartment Unit after QFD CONCLUSIONS QFD is a valuable and very flexible tool for Design. The sequence of parts and steps during the QFD process can be changed according to the strategy adopted by the design team. The correlation matrix is the heart of the QFD process and stores precious information needed for design improvements July 999, University of California, Berkeley, CA, USA

46 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project QFD helps prioritize the improvements and design specifications. QFD also helps translating the buyers and users needs into information that can be managed by the design team. Besides, it facilitates the use of benchmarking information in a systematic way. The most difficult aspect in the use of the QFD as a tool in the design of a real estate project was the previous lack of strong coordination in the beginning of the project especially in features related to detail solutions. Another difficulty was making the project team recognize that QFD is a powerful and flexible tool for construction. One last important issue in the use of QFD is the size of the core matrix. The project team coordinator in this case study decided to limit the size of the matrix to x, which proved to be a good decision. REFERENCES Akao, Y. (99). An Introduction to Quality Function Deployment. Quality Function Deployment (QFD): Integrating Customer Requirements into Product Design, Y. Akao, ed., Productivity Press, Cambridge, Massachusetts, -. Armacost, R. L., Componation, P. J., Mullens, M. A. and Swart, W. W. (99). An AHP Framework for Prioritizing Customer Requirements in QFD: An Industrialized Housing Application. IIE Transactions, 6 (), Bicknell, B. A., and Bicknell, K. D. (99). The Road to Repeatable Success Using QFD to Implement Change. CRC Press, Boca Raton, Florida. Bossert, J. L. (99). Quality Function Deployment: a practitioner s approach. ASQC Quality Press, Milwaukee, WI. Cohen, Lou (99). Quality Function Deployment: how to make QFD work for you. Addison-Wesley Publishing Company, Reading, MA. Hauser, J.R. and Clausing, D. (988). The House of Quality. Harvard Bus. Rev., May- June, 6-7. Huovila, P., Lakka, A., Laurikka, P., and Vainio, M. (997). Involving of customer requirements in building design. In: Lean Construction, L. Alarcón, ed., Balkema, Rotterdam, The Netherlands, -6. Mallon, J. C., and Mulligan, D. E. (99). Quality Function Deployment A System for Meeting Customers Needs. J. of Constr. Engrg. and Mgmt., 9(), 6-. Santiago, C.A.F., Lindenberg, S.A., Prates, L.R., Ramos, L.F.B., Maciel, G.A., Guimarães, C.A. S., Silva, R.T., Câmara, R.M.S., Serafim Jr., M. (99). Application of QFD - Quality Function Deployment in a construction project of M. Roscoe Construction Company. (in Portuguese) Proc. of Seminar, Cristiano Ottoni Foundation, Minas Gerais, Brazil, Serpell, A., and Wagner R. (997). Application of Quality Function Deployment (QFD) to the determination of the design characteristics of building apartments. Lean Construction, L. Alarcón, ed., Balkema, Rotterdam, The Netherlands, -6. Shino, J., and Nishihara, R. (99). Quality development in the construction industry. Quality Function Deployment (QFD): Integrating customer requirements into product design. Y. Akao, ed., Productivity Press, Portland, Oreg., Tribuci, E.S. and Clemente, E.J.B.S. (99). Application of QFD - Quality Function Deployment in a product developed by Multibras Appliances S.A. (in Portuguese) Proc. of Seminar, Cristiano Ottoni Foundation, Minas Gerais, Brazil, -9. Proceedings IGLC-7 67

47 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project USING QUALITY FUNCTION DEPLOYMENT (QFD) IN THE DESIGN PHASE OF AN APARTMENT CONSTRUCTION PROJECT Luiz Antônio Gargione ABSTRACT Quality Function Deployment-QFD is a powerful development methodology with a wide range of applications. This paper presents a simple case using QFD on the design phase of a Real Estate construction project as a tool of improvement for layout and features of a middleclass apartment unit. The main purpose of QFD in this study was to apply in construction a method of customer-oriented design used in other industries, and to adapt some of the tables and matrices proposed by Akao (99). Another purpose of this case study was to test the applicability of QFD in real estate projects managed and developed by small companies usually owner-operated. KEY WORDS Quality function deployment, lean construction, building design, building construction, the house of quality. Assistant Professor and Research Collaborator, IP&D, Instituto de Pesquisas e Desenvolvimento, Universidade do Vale do Paraíba, Av. Shishima Hifumi 9,.-, São José dos Campos-SP, Brazil, +() () 7-, fax: +() () 7-, Proceedings IGLC-7 7

48 Gargione INTRODUCTION Small construction companies that operate in the Brazilian real estate housing market are trying to improve the design development phase in their projects so that they can better satisfy the needs of the buyers and users, especially for new apartment buildings. Many companies dedicated to multiple-family construction agree that the most important aspect in the real estate market is the Value that they can provide to their clients. These companies understand the value for their customers in different ways. The term value means different things to different people. One approach to value calls for the buyers and users points of view. Value can be defined as the size of the residential unit in relationship with the price or the technical quality of the materials used in finish work or any other features of kitchen or bathroom. Value can also be understood as something that is appropriate for the money the buyer is investing for the new property. These companies also agree that the primary challenge for the new projects that they are developing is the balance between the perception and requirements of the buyers and users and the financial goals for these projects. These financial goals are typically translated into RoI (Return on Investment), Pay-back, IRR (Internal Rate of Return), speed of sales and cash-flow support. IMPORTANCE OF THE DESIGN PHASE The Design Phase for housing is responsible for achieving client s requirements and it is in this phase that the company needs to reach the standards of quality through drawings and technical specifications. The questions for any company are how to obtain the innovative solutions or information for developing new projects, and how to manage decision-making in a way that ensures the best possible results. These issues apply to the strategy for housing design. The search of a balance between external and internal inputs for the design phase was one of the goals of this study. Whatever method is used to design or develop a solution for the project, its success depends on how the company assimilates and manages the client s requirements. According to Webster s Third New International Dictionary, Value is the amount of a commodity, service, or medium of exchange that is the equivalent of something else: a fair return in goods, services, or money (the method of merchandising is to give the buyer good at the right price Wall Street Journal). In this case the company responsible for the project is involved in a development process composed by () land acquisition, () design and construction of the building, and () project sale. How long after development the company sells the residential units of the project depends on the market and the business strategy employed. The project has been an economic success if its market value exceeds the sum total of the land and additional development costs to complete it. It is in this sense that developers are said to create value July 999, University of California, Berkeley, CA, USA

49 Using Quality Function Deployment (QFD) in the Design Phase of an Apartment Construction Project WHY QFD? The study focused in a system capable of translating buyers and users needs into design requirements, and changing these requirements into critical characteristics and specific parts requirements. QFD (Quality Function Deployment) is a method for: a) developing a design quality aimed at satisfying the consumer, b) translating the consumers demand into design targets and major quality assurance points to be used throughout the production stage (Akao 99). The QFD system involves constructing one or more matrices containing information related to the others. The first matrix is sometimes referred to as the House of Quality and contains information about customer s needs and requirements. The objectives of using QFD in the project are: Define design and specifications for the residential units meeting the highest level as possible of customer requirements and satisfaction. Ensure consistency between customer requirements and product s measurable characteristics such as dimensions and features of rooms and finish materials used in the construction work. Ensure consistency between the design phase and the construction work. QFD can minimize the problems that usually are detected on the interaction between design and construction phases (including constructability problems and construction reworks). Optimize the integration of customers perceptions and variables that can affect the RoI (Return on Investment) such as construction cost, speed of sales, schedule and cash flow. Reduce the time to perform quality features throughout product development. QFD can be applied to the construction industry in different ways. Mallon and Mulligan (99) used QFD on a hypothetical renovation of a personal computer workroom. Armacost et al. (99) applied QFD to integrate the customers requirements in an industrialized housing component: a manufactured exterior structural wall panel. Serpell and Wagner (997) used QFD to determine preferences on the design characteristics of the internal layout of a building apartment. QFD was also applied to construction (Huovila et al. 997) involving different players working together in three construction projects: a structural design firm and two contractors. This research objective was to test the applicability of QFD to construction involving companies from different backgrounds. QFD was used as a tool in this case to prioritize important points that could offer a potential of improvement according to the clients requirements and needs. It was used specially to improve the basic layout and basic specifications of the middle-class apartment units of the project. However, some difficulties were identified during the use of QFD: The focus group didn t express clearly most of their opinions, needs and requirements. Substantial increase on the time expended by the project management team in planning and analyzing the data collected. Proceedings IGLC-7 9

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