WHY IS THE ROI FROM LEAN CONSTRUCTION TRAINING SO COMPELLING?

Transcription

1 WHY IS THE ROI FROM LEAN CONSTRUCTION TRAINING SO COMPELLING? DPS Engineering & Leading Edge Group

2 Presentation Overview Why is the ROI from Lean Construction Training so Compelling? Lean in DPS Engineering Lean Construction Training in DPS Engineering Improvement Lean Projects Case Studies Case Study 1: Construction Defects and the Punchlist Process Case Study 2: Streamline the Proposal Process The legacy of Lean training Q&A

3 LEAN IN DPS ENGINEERING

4 Why Introduce Lean Thinking? The objective of introducing Lean Thinking into Cork Operations was to: 1. Increase Lean capability 2. Set up a network of Lean Green Belt practitioners to improve efficiency and reduce costs in the Cork operations 3. Set up a governance structure for new ideas and ensure that people are working on the right thing

5 Why Introduce Lean Thinking? Green Belt training forecast to make savings in the region of 250k in 2017 Increasing numbers of DPS clients are requesting that we use Lean methodologies. Example: 2017 DPS won largest ever project in MSD Brinny on back of using the Lean tool Last Planner System on a previous MSD project. We have now incorporated this tool into the detail design element of the new project. As a result DPS Cork Ops increased its workforce two fold.

6 Why Lean Education? Poor sectoral awareness of Lean (2017 Research): Perceived that it is complicated and complex Poor understanding of the concept of Lean and a lack of basic Lean knowledge on site Lack of a common language and understanding of next customer within construction Integration of appropriate Lean tools LPS, TVD, BIM, A3 Problem Solving, DMAIC, 6S

7 The Business Case for Lean Empirical evidence now shows that projects with high Lean intensity are three times more likely to complete ahead of schedule and two times more likely to complete under budget Source: Lean Construction Institute

8 LEAN CONSTRUCTION EDUCATION & TRAINING

9 What is Lean Construction Training? White Belt 1 day training Awareness Training Yellow Belt 2 days training Gives the learner the skills and tools to participate in Lean Construction improvement projects Green Belt 5 days training Learner achieves practitioner status Assessment: 50% exam and 50% work based improvement project International university certification from the University of Ontario Customised programmes have been created in collaboration with industry: Mercury Engineering, Winthrop Engineering, DPS Engineering, Kirby Engineering

10 Lean Construction Education in DPS Engineering Yellow Belts certified: 20 Green Belts certified: 17 2 days YB training 5 days GB training 1 day exam prep 2 days project mentoring Project per GB student Certification from University of Ontario Substantial improvements for DPS

11 Who were the Green Belt students? The Green Belt cohorts included representatives from: Operations Project Managers Environmental, Health and Safety Quality & Document Control Electrical & Instrumentation Mechanical Piping Process Construction Management Civil Structural Architectural

12 Green Belt Project Examples 1. Improve closeout relating to construction defects and the punchlist process 2. Streamline the proposal process 3. Improve quality compliance to increase customer satisfaction in design deliverables 4. Analysis of net margin on projects executed in DPS Cork 5. Development of a DPS standard project roadmap to suit brownfield projects 6. Cutting waste modelling time with the implementation of basic REVIT 3D models

13 TWO CASE STUDIES

14 Case Study 1: Construction Defects and Punchlist Process Scope: Improve defect closeout relating to the construction phase Significant waste associated leading to delays and frustrations Expected benefits: Deliver efficiencies, time and cost savings Reduce frustration and stress Ability to measure and demonstrate proficiency in defect closeout to give DPS a competitive advantage, leading to more project wins

15 Key Metrics Punchlist Rate Closeout Rate Achieve rate of 1 punch item per 25k worth of contract works 18% improvement Achieve closeout rate of 12 days 25% improvement on the current rate of 16 days

16 Project Methodology Define Control Measure DMAIC Improve Analyse

17 Lean Tool: Voice of the Customer (VOC) Detailed interviews with customers Understand and quantify needs Understand the implications of making improvements for the customers

18 Lean Tool: SIPOC Diagram

19 Lean Tools

20 Key Changes & Benefits Key Changes: Agreement on key metrics Increased focus on avoiding defects Promotion of Right First Time methods Monthly recognition for Lean contractor of the month Benefits: Schedule: Estimated time saving of 5.2 weeks off the planned construction duration of 51 weeks. Cost: The cost saving to the client in terms of reduced preliminaries and DPS supervision fee will result in a saving in excess of 650k to the client.

21 Case Study 2: Streamline the Proposal Process Accurate and professional proposals reflect the optic to the marketplace that DPS is capable of executing larger and complex projects Scope: Targeted step improvement in quality Reduction in costs Expected Benefits: 10-15% reduction on proposal costs (currently 7,000 per proposal) Monitoring quality of proposals and position in marketplace

22 Project Methodology Define Control Measure DMAIC Improve Analyse

23 Lean Tools

24 Lean Tools

25 Key Changes & Benefits Key Changes: Generation of specific schedule for each proposal Pull down of key table of content topics which are already preapproved Benefits Reduction in time taken to complete proposals: 5 days Two pilot projects achieved a 9% and 13% savings against the benchmark of 7,000

26 SUMMARY

27 Overall Benefits to DPS 17 Green Belt projects: Total savings of 390,000 per annum Increase in compliance from 75% to 85% Increased customer satisfaction Reduction in rework of design deliverables Increased project margins Increased project win rate More competitive in the construction space

28 Two more Green Belt programmes on the way

29 Overview of Lean Construction Ireland

30 About LCI 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. 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. VISION Deliver Projects Better, Faster, Together

31 Contact LCI TWITTER.COM/LCI_IRELAND