Lean Construction: A new operating system for projects.

Gregory A. Howell, P.E. Executive Director Lean Construction Institute http://www.leanconstruction.org/

A brief history of project management

Enter the Critical Path

Practice and the Industry Evolves Surprising Data A New Planning System

Practice and the Industry Evolves

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How do we manage projects now ?

Determine client requirements including quality, time and budget limits. Design to meet them. Break project into activities, estimating duration and resource requirements for each activity and placing them in a logical order with CPM Assign or contract each activity, give start notice and monitor safety, quality, time and cost standards. Act on negative variance from standards Coordinate with master schedule and weekly meetings
reduce cost by productivity improvement. reduce duration by speeding each piece or changing logic.

improve quality and safety with inspection and enforcement.

Lean Construction Institute, 2005

www.leanconstruction.org

What is our common sense

Operating System Activity Centered - CPM Commercial Terms Transactional

Organization Command & Control

Optimize the piece - optimize the project

Change the observer

Research Findings from early 1990s

Contractor 1 Contractor 2 Contractor 3 Contractor 4 Contractor 5 Contractor 6 Contractor 7 Average 33 % 52 % 61 % 70 % 64 % 57 % 45 % 54 %

The percentage of tasks completed of those assigned in a week, that is ready for the next crew to begin work. 8

Percent Plan Complete (PPC) Chart

Rasacaven: Electrical Power Distribution

2009 Lean Construction Institute

The Last Planner System of Production Control 5 - Connected Conversations

Master Scheduling
Milestones

Set milestones & strategy Identify long lead items

Specify handoffs Identify operational conflicts Make ready & Launch Replanning when needed

SHOULD
Phase Pull Planning

CAN WILL DID

2009 Lean Construction Institute

Make Work Ready Planning Weekly Work Planning

Promise
Measure PPC & act on reasons for failure to keep promises

Learning

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Three Connected Opportunities Impeccable Coordination

Production System Design

Collective Enterprise

Impeccable Coordination

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Courtesy of DPR, Inc

2009 Lean Construction Institute

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Courtesy of DPR, Inc

2009 Lean Construction Institute

17

Courtesy of DPR, Inc

2009 Lean Construction Institute

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The Last Planner System of Production Control 5 - Connected Conversations

Master Scheduling
Milestones

Set milestones & strategy Identify long lead items

Specify handoffs Identify operational conflicts Make ready & Launch Replanning when needed

SHOULD
Phase Pull Planning

CAN WILL DID

2009 Lean Construction Institute

Make Work Ready Planning

Weekly Work Planning

Promise
Measure PPC & act on reasons for failure to keep promises

Learning

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Project management common sense: New Coherence

Operating System CPM Activities Lean - Flow

Commercial Terms Transactional

Organization Command & Control Collaborative

Relational

Optimizing the project not the piece 24

Results of Lean/Baker 2.0

Lost Time Case Rate (LTCR): Down 100% Recordable Incident Rate (RIR) Down 75% BEST Safety performance in the company LOWEST overtime percentage in the company Spot Labor Productivity: -10% to +75%
Variance is most likely a function of the estimate

Schedules: Ahead or Within a few Days

Average gain is 2-3 days per month

Rework / Punch list cost: Down 15-25%

 69,000 sq. ft. MOB $19m budget -- $20m original estimate

IFOA team assembled at concept

3D model for coordination/clash detection Total station layout

$1m+ in scope added w/o increasing budget (TVD wish list) Construction savings -- $600k under GMP Zero field conflicts at installation Layout using Total Station MH reduction - 75%; duration - 50%

To Learn More
http://www.leanconstruction.org/