Introduction to Lean Construction: What is Lean Construction and How Can It Benefit You?

Transcription

1 Introduction to Lean Construction: What is Lean Construction and How Can It Benefit You? BY DAVID UMSTOT, PE, CEM UMSTOT PROJECT AND FACILITIES SOLUTIONS, LLC ABC Webinar November 19,

2 Lean Construction A World View Extreme Lean! 2013 Umstot Project and Facilities Solutions, LLC 2

3 ENR Building Cost Index ( ) % Increase Since Source: ENR, 30Sep

4 ENR 2013 Building Cost Index Factors LUMBER CEMENT STEEL 65% SKILLED LABOR Source: ENR, 30Sep2013

5 Index of Construction Labor Productivity Non-farm Productivity Construction From: Teicholz (2013)

6 Construction Waste in the U.S. Current Manufacturing Current Construction Support Activity 12% Waste 26% Support Activity 33% Waste 57% Value Added 62% Value Added 10% Source: Construction Industry Institute

7 What is Lean Construction? Lean Construction is a production management-based approach to project delivery to maximize value and minimize waste. - Lean Construction Institute

8 What Differentiates Your Firm From Your Competition? Four Elements to Price Competitiveness: 1. Material and Supplies 2. Equipment 3. Labor Productivity 4. Overhead and Profit How Can Lean Improve Your Firm s Performance and Competitiveness?

9 Awareness Test

10 Ohno Circle (Open Your Eyes)

11 The Eight Wastes as Defined by Toyota (and Liker) 1. Overproduction 2. Waiting 3. Unnecessary transport 4. Overprocessing 5. Excess inventory 6. Unnecessary movement 7. Defects 8. Unused employee creativity

12 Typical Types of Construction Waste: Rework Requests for Information Change orders Inadequate Resources Inefficient work flow Work arounds Multiple handling of material Excess material Waiting on supplies Waiting on another trade Safety losses Improper sequencing of work

13 WHAT LEAN IS NOT What We ve Always Done A Singular Tool A Workforce Reduction Method A Quick Fix A Cost Cutting Method A Manufacturing Program A Project A Quality System A Passing Fad Program Of The Month Someone Else s Job Courtesy of The Blair David Co. 13

14 Lean Philosophies Define customer value Identify and remove waste Innovate and perfect Value Value is defined by the owner Value is not cost Courtesy: Southland Industries 14

15 What is Lean Project Delivery? Shared principles: 1. Optimize the Whole 2. Collaborate, Really Collaborate! 3. Continual improvement/pursuit of perfection 4. A focus on delivering value 5. Allowing value to flow 6. Creating pull production The priority for all construction work is to: 1. Keep work flowing 2. Reduce inventory of material and tools, and 3. Reduce costs 15

16 Who is Going Lean? 16

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18 Why Go Lean? (From UHS Lean Project Delivery Guide) Fundamentals of Lean: To understand value from the customer s perspective and to only take actions which deliver that value Waste is disrespectful 1. to humanity squanders scarce resources 2. to individuals adds work 3. to clients adds cost/time/aggravation Become a leaning organization through relentless reflection and continuous improvement as a team. Status quo is never acceptable. Lean is about inspiration and empowerment. People are empowered to affect decisions and the work itself which not only delivers better projects, but leads to heightened satisfaction for all. Lean is about developing principles that are right for your organization & diligently practicing them to achieve high performance. 18

19 Additional Lean Resources Fix What Bugs You. Paul Akers Think of Lean as a fitness program for your business.

20 Early (and continued) Attitudes Toward Lean We ve tried that. We already do that. We don t need it. It won t work here. We don t build cars. We re different. The other guy needs it, not me. We re doing well, so why change? Credit: Lean Construction Institute

21 Integrated Project Delivery (IPD)

22 IPD What Is It? Project delivery approach that integrates people, systems, business structures, and practices to optimize project results, increase value to the owner, reduce waste and maximize efficiency of project delivery. Distinguished by highly effective collaboration among the owner, prime designer and prime constructor commencing at early design through project completion.

23 IPD Why Do It? MacLeamy Curve

24 IPD Programs in the United States

25 Introduction to some Lean Tools? 1. The Last Planner System 2. Target Costing 3. A3 Problem Solving and Reporting 4. Set-Based Design 5. Value Stream Mapping 6. 5S (Sort, Straighten, Shine, Standardize, Sustain) 7. Building Information Modeling (BIM)

26 Target Costing - Project Budget Development Space Programming Space Efficiency Targeted Cost Per Sq. Ft.

27 A3 Report for HVAC Set-Based Design

28 Set-Based Design Connection Example Standard Engineering Detail Courtesy: Tipping Mar

29 Set-Based Design Connection Example $4.37/kip $11.39-$18.75/kip Courtesy: Tipping Mar $4.88/kip $5.30/kip

30 Value Stream Mapping Change Order Process START Resolution to CM Determine entitlement Before proceeding From this point Old Change Order Process 1 Working Day 15 Working Days 15 Working Days CM Creates RFP; Issues to Contractor Contractor Issues Price, CM Reviews Price, Issues COR Price Fair and Reasonable? NO Negotiate END 1 Working Day Distribution 5 Working Days 5 Working Days YES 0 Working Day District Admin. Receives and Processes Contractor Signs A/E Signs CM Creates Change Order 1 Working Day Total Process Duration: 67 Working Days With Negotiation CM Signs IOR Signs CPM Signs Richard B Signs Dave U Signs 5 Working Days 5 Working Days 5 Working Days 5 Working Days 5 Working Days

31 Value Stream Mapping Change Order Process New Change Order Process Effective January 2011 START Resolution to CM Determine entitlement Before proceeding From this point 1 Working Day 5 Working Days 7 Working Days CM Requests Pricing from Contractor via Fax/ Contractor Issues Price, CM Reviews & Prepares Change Order Negotiate Total Process Duration: 28 Working Days With Negotiation 7 Working Days Price Fair and Reasonable? YES NO CPM Signs A/E, IOR, Contractor, CM Sign Separate CO Cover Sheet Richard B Dave U Sign District Admin. Receives and Processes END Distribution 1 Working Day 7 Working Days 1 Working Day

32 5S (Sort, Straighten, Shine, Standardize, and Sustain) Benefits 1. Increased productivity, less time spent searching for tools, supplies and equipment 2. Improved safety, a clean, organized site is a safe site 3. Enhanced quality due to standardization

33 Is Critical Path Method Scheduling Obsolete?

34 Schedule Performance SDCCD Experience: 30 Major Projects with CPM Scheduling 3 (10%) finished on time UC System Experience in past 10 years: More than 30% of projects delayed by more than 90 days Research by Glenn Ballard and Greg Howell indicated only 54% of planned weekly activities get completed on average. LastPlanner TM pull system a better way (typically 80-90% percent promises kept)

35 Last Planner System Who are the Last Planners? The foremen and superintendents 5 Major Elements of System 1. Master Scheduling setting milestones 2. Phase (Pull) Planning specifying handoffs 3. Make Work Ready Planning 6 week look-ahead 4. Weekly Work Planning 5. Learning - Measure Percent Promises Complete, conduct root cause analysis and act on reasons for failure to keep promises

36 Pull Planning Start with the end in mind. Steven Covey

37 San Diego Community College District Pull Planning in Action

38 San Diego Community College District Pull Planning Workshop

39 Building Information Modeling McGraw Hill Construction BIM Report (October 2012) The percentage of companies using BIM is now 71%, which is a jump when comparing previous statistics, with 17% in 2007 and 49% in More contractors (74%) are using BIM than architects (70%) for the first time.

40 Building Information Modeling Clash Detection Building Construction Mechanical piping hits cable tray and fire protection piping in ceiling space Survey Average Results Man-hour Savings = 61 Delay Savings = 3 Days Cost Savings = $30, Number of Clashes Shown in Example = 9 Savings per Clash Resolved = $3, Courtesy Sundt Construction

41 San Diego CCD Change Order Metrics BIM vs. No BIM Change Orders Errors & Omissions Total BIM: 1.1% 4.1% No BIM 3.3% 8.6% (All Contract Types)

42 San Diego CCD Schedule Impacts BIM vs. No BIM Average Delay (All Contract Types) BIM: 24.5 days Without BIM: 79.6 days

43 Current BIM Trends Autodesk BIM 360 Field: Management Everywhere Internet (Wireless or wired) Owner Project Executives Architect & Engineer Superintendents, Quality, Safety, Others Project Managers/ Project Engineers Trades & Subcontractors (Field) Trades & Subcontractors Office Courtesy: Autodesk

44 Typical Field QA/QC Process Rework Costs # of Observations Lower Profitability Expected Completion Current Day QA/QC Process QA/QC Process Duration Over Time Closeout Courtesy: Autodesk

45 BIM 360 Field Structured QA/QC Higher Profitability # of Observations QA/QC Process Substantial Completion QA/QC Process Duration Over Time Closeout Courtesy: Autodesk

46 Patrick MacLeamy, FAIA, Chairman and CEO, HOK -- Buildings are Assembled Not Built

47 Structure and Skin Pre-Fabrication Trends Exterior skin Mesa College Math & Science Building Columns and Double Ts City College Arts & Humanities Building

48 Off-site Pre-Fabrication Trends Mechanical systems off-site racking Mesa College Math & Science Building

49 Pre-Fabrication In Controlled Setting

50 Pre-fabrication Trends in the USA 32-Story B2 Bkyln at Atlantic Yards, Brooklyn, NY completely modular construction 100,000 square foot assembly plant off-site for all trades

51 Off-site Pre-Fabrication Trends Skanska Miami Valley Hospital, Dayton, OH 51

52 How Can Lean Project Delivery Benefit You? 1. Enhanced value to the Owner/Customer 2. Reduced waste 3. Improved productivity 4. Reliable and predictable work flow resulting in better schedule performance 5. Improved quality 6. Safer sites 7. Satisfied employees and team partners 8. Increased profitability

53 Questions? David Umstot, PE, CEM Umstot Project and Facilities Solutions, LLC (619)