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1 The Sun Never Sets on a Disney Resort! Disneyland Paris, France Walt Disney World, Florida Disneyland Resort, California Tokyo Disneyland, Japan Hong Kong Disneyland, China Shanghai Disneyland, China
2 Our Challenges All work publicly tendered Maximum Bid set by Government Cannot buy required level of service Exhaustive legislation
3 The Workforce Non-skilled vs unskilled labor Unlimited human commodity Low use of mechanized equipment Poorly enforced safety and quality standards 85% turnover rate
4 Completing the work Large companies, inconsistant operations Hierarchal decision making Who completes design? No trade coordination, first in Vertical integration vs layering
5 Our Key Learnings Compelling the Government for services required Research best in class Understanding completed design Owner sponsored training for safety, quality
6
7 John Pemberton V.P. Technology Manufacturing Group General Manager of Global Construction
8 Intel s Mission Utilize the power of Moore s Law to bring smart, connected devices to every person on earth. 2
9 Intel s Vision If it is smart and connected, it is best with Intel. Data Center Client Ultra-Mobile Wearables/IoT 3
10 Construction Dilemma We can do better!
11 Owner s Responsibility We are part of the problem External Supply Chains Owner Architect & Design Supply Clusters Contractor Supply & Work Clusters Construction Supply Chain
12 Leadership We started our journey. All we had was D
13 Construction Revolution Journey T-Shaped GOST Culture Behaviors Keeping Score External Learning Construction Story Enterprise Vision Goals, Objectives, Strategies, Tactics Feb 2013 Nov 2013 Jan 2014 June 2014 Sept 2014
14 Cutting Waste is Good Business 25%+ Waste Value Maximize Value..Higher Profits Shared Savings
15 8 Types of Waste TIMWOOD +1 Transportation Site Logistics & materials 10% of material cost is air freight Over Production Excessive documentation Install equipment before need Inventory Parts or tools in the warehouse Design packages Over Processing Checkers checking checkers Request for Information Motion Site Logistics- lunch tent location Material staging Defects Quality rejects & rework Claims Waiting Permits & materials Bids, procurement process +1 Non-utilized talent Right job, Right Skill, Right Time
16 Transportation Transportation Site Logistics & materials 10% of material cost is air freight 8 Duct Mfg $46.35 Arizona $73.49 MFG US Distributor Subcontractor GC/DB Shipping/ Duty Ireland $107
17 Inventory Inventory Parts or tools in the warehouse Design packages After Before 10 days days 23 Just in Time Delivery is optimal. What manufacturing calls Theory of Constraints. Results in 57% duration reduction.
18 Motion Motion Site Logistics- lunch tent location Material staging Before 17% Value Add 17% 11% 72% Breaks NVA VA After 57% Value Add 57% 11% 32% NVA VA Breaks Breaks 11% VA 57% Testing 0% Waiting 21% Rework Discussio n Retrievin 0% 2% g Materials Moving 0% 3% Safety 1% Set-up Observati 1% on Cleaning 0% Consult 4% Measurin Diagram g0% 0%
19 Waiting Waiting Permits & materials Bids, procurement process Standard Sequence Design Construction GC Selection Trade Selection Waiting Need to eliminate waiting from critical path. We have designed the procurement system because we believe that s how we are getting value.
20 Overproduction Over Production Excessive documentation Install equipment before need Waste Intel providing excessive requirements & documentation Results Intel went on a Doc Diet and so far have reduced 44% pages and on our way to achieve our 75% goal # of pages Goal
21 RFI per $M Over Processing Over Processing Checkers checking checkers Request for Information Project Size $M 2 Bright Spots with RFI/$M=1
22 Defects Defects Quality rejects & rework Claims Defects/Construction Complete: As high as 12 down to <1 Quality Breakthrough 1. Define what good looks like with our partners 2. Objectively look at same data 3. Mock-ups of what good looks like Result went from >12 to <1 and everyone wins!
23 Non-Utilized Talent +1 Non-utilized talent Right job, Right Skill, Right Time
24 Owner 1 st Steps 4. Supplier Expectations to Share & Learn 3. Collaborative Contracting 2. Eliminate Excessive Requirements Doc Diet 1. Listen & Remove Intel Tax Productivity ideas
25 Change the Mindset Lean Thinking It s the Lean Thinking not just the Lean Tools Lessons from Toyota Optimize the Whole We need to optimize across the supply chain We need to band together to make the change
26 Adoption Curve 13.5% We need your help!
27 We Can Do Better Let s measure and improve Common success denominators: 1. Transparency 2. Objective data 3. Single version of the truth 4. Win-Win approach When these 4 are working.improvement is possible!
28 Closing Thoughts Thanks to our Pioneers Early Adopters who are leading the way Disney & Health Care Assess your change equation are you dissatisfied? Are you interested in learning more about the how on Lean or Integrated Delivery? We would like to connect with other Dissatisfied owners and are making ourselves available after this session
29 Impacting People Around the World Building on our Past Building for our Future We Can Do Better Are you in?
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