Title: Lean Project Delivery
1Lean Project Delivery
-
- Glenn Ballard
- Project Production Systems Laboratory
- Engineering and Project Management
- University of California at Berkeley
2Workshop Objectives
- Understand Lean Project Delivery
- Where did it come from?
- What is it? How is it different?
- Prepare for the pre-construction phase of your
projects - Coordination and control through reliable
promising - Set based design strategy
- Maximizing value for money through target costing
- Collaborative design process
- Launch project planning
- Business case, stakeholder map, stakeholder
values - Constraints financial, location, regulatory
- Organizational and contractual structure project
governance - What will we start doing? What will we stop
doing?
3Glenn Ballard a brief CV
- Experience
- Pipefitter, Foreman, Construction Engineer,
Productivity Quality Specialist, Internal
Management Consultant for Brown Root and
Bechtel - Independent Management Consultant for Petroleos
de Venezuela, U.S. Dept. of Energy, Pacific Gas
Electric, Koch Refining, BAA (Heathrow Terminal
5), Channel Tunnel Rail Link (St. Pancras
Station) - Current Position
- Professor in the Engineering Project Management
Program, Dept. of Civil Environmental
Engineering, UC Berkeley - Director, Project Production Systems Laboratory,
UC Berkeley - Education
- B.A. in Mathematics
- M.B.A.
- PhD in Civil Engineering
4The Airplane GameAn exercise in production
system design
-
- Engineering and Project Management
- University of California at Berkeley
5Phase 1-3 Assembly Layout
Incoming Queues
6Phase 1-3 Assembly Layout
WS1
WS2
WS3
WS5 (QC)
WS6
WS4
Incoming Queues
7Performance Metrics
- Planes the number of good planes produced in
each 6 minute phase. - Time the time it takes the first good plane to
get through the system. - Rework the number of planes turned upside to
indicate defects in configuration or fit. - Work-in-Progress Inventory (WIP) the number of
subassemblies on the table at the end of the 6
minute phase.
8Phase 1 Logistics
- Workstations in work flow sequence
- Materials located at workstation
- Workstations 2-5 have an incoming queue space
- Completed Batches of 5 placed in queue space of
next station - Batches remain together until final inspection
9Phase 1 Policies
- Workers perform only their assigned tasks - NO
THINKING - Maintain Batch integrity - BUILD IT IF YOU CAN
and PASS IT ON IF YOU CANT. - QC Problems only detected by Inspector - NO
FEEDBACK - NO TALKING - All QC problems set aside as rework - TURN UPSIDE
DOWN - QC Inspector announces first good plane.
- Assemblers are paid by the piece.
10Your Hypotheses
- How many good planes will your team produce in
Phase I? - How long will it take for you to produce the
first good plane? - How much rework will you generate (planes turned
upside down)? - How much WIP will you generate (subassemblies
left on the table)?
11How could this system be redesigned for better
performance?
12Phase 2 Logistics
- Workers may have only one assembly at their
workstation - Only 1 assembly allowed in queue space between
stations (Batch size of 1) - Assembly can only be placed in queue when it is
empty (pull mechanism). - Workstations in Work Flow Sequence
- Materials located at station
- Stations 2-5 have an incoming queue space
13Phase 2 Policies
- QC Problems may be verbalized by any worker
- SOME THINKING and TALKING ALLOWED
- All QC problems set aside as rework at station
discovered. - TURN UPSIDE DOWN
- Everyone is paid hourly wages plus a bonus for
team performance. - Workers perform only their assigned tasks
- Workers cannot fix QC problems from upstream
- Inspector announces first good plane.
14Your Hypotheses
- How many good planes will your team produce in
Phase II? - How long will it take for you to produce the
first good plane? - How much rework will you generate (planes turned
upside down)? - How much WIP will you generate (subassemblies
left on the table)?
15Your Hypotheses
- How many good planes will your team produce in
Phase II? - How long will it take for you to produce the
first good plane? - How much rework will you generate (planes turned
upside down)? - How much WIP will you generate (subassemblies
left on the table)?
16Phase 3 Logistics
- Use phase 3 Instruction Sheets.
- Workers may have only one assembly at their
workstation - Only 1 assembly allowed in queue space between
stations (Batch size of 1) - Components can only be placed in queue when it is
empty (pull mechanism). - Workstations in Work Flow Sequence
- Materials located at station
- Stations 2-5 have an incoming queue space
17Phase 3 Policies
- Workers perform ANY step in the production
process. - QC problems can be fixed by any worker - Fix it
when you find it. - No restrictions on talking.
- Everyone is paid hourly wages plus a bonus for
team performance. - Inspector announces first good plane.
18Your Hypotheses
- How many good planes will your team produce in
Phase III? - How long will it take for you to produce the
first good plane? - How much rework will you generate (planes turned
upside down)? - How much WIP will you generate (subassemblies
left on the table)?
19(No Transcript)
20(No Transcript)
21Lean Production Techniques in the Airplane Game
- Minimize the movement of materials and workers by
sequencing and positioning of workstations
(layout) and by maintaining materials at the
workstations. - Release work (materials or information) from one
workstation (specialist) to the next by pull
versus push - Minimize batch sizes to reduce cycle time.
- Make everyone responsible for product quality
- Balance the workload at connected workstations
- Encourage and enable specialists to help one
another as needed to maintain steady work flow
(multiskilling)
22More Lean Production Techniques
- 1. Stop the line rather than release bad product
to your customer. - 2. Minimize changeover (setup) time to allow
one piece flow. - 3. Make the process transparent so the state of
the system can be seen by anyone from anywhere.
23The Airplane Game
-
- What are the key points or lessons for you?
- How might these apply to designing and making
buildings? How could you use what you have
learned on your projects?
24Lean Project Delivery What is it? Where did it
come from? Where is it going?
Graphic courtesy of Extemin
25What is this thing called LEAN?
What has changed Manufacturing, and sharply
pushed up productivity, are new concepts.
Information and automation are less important
than new theories of manufacturing, which are an
advance comparable to the arrival of mass
production 80 years ago. Peter Drucker, The
Economist, pg 12, November 3, 2001
26Craft Production
- One Off, Custom Products
- Flexible, Simple Tools
- Highly Skilled Workforce
- Integrated Product Development
- Quality by tinkering and rework
- Build to Order
- High Cost - Low Volume
Source The Machine that Changed the World by
Womack, Jones Roos
Courtesy of Strategic Project Solutions Inc. 2005
27Mass Production (Ford)
- High speed, automated tools
- Large batches and inventories
- Good enough quality
- Departmental organizations
- Lengthy product development
- Low innovation rate
Source The Machine that Changed the World by
Womack, Jones Roos
Courtesy of Strategic Project Solutions Inc. 2005
28Toyota Production System (aka Lean)
- Started in the 1950s
- Chief Architects
- Taichi Ohno Shigeo Shingo
- Challenge
- Limited Cash Space
- Sophisticated Customers
- Goal
- A custom product, delivered instantly, with
nothing in stores.
Source The Machine that Changed the World by
Womack, Jones Roos
Courtesy of Strategic Project Solutions Inc. 2005
29Lean Compared to Mass 1980s
Source The Machine that Changed the World by
Womack, Jones Roos
30Design Performance
Japan
USA
- Avg. Engineering Hours (millions) 1.7 3.1
- Avg. Development Time (months) 46.2 60.4
- Employees in Project Team 485 903
- of Body Types per New Car 2.3 1.7
- Supplier Share of Engineering 51 14
- Ratio of Delayed Products 1 in 6 1 in 2
- Prototype Lead Time (months) 6.2 12.4
- Prod. Start to First Sale (months) 1 4
- Return to Normal Quality (months) 1.4 11
Source The Machine that Changed the World by
Womack, Jones Roos
Source The Machine that Changed the World by
James P.Womack and Daniel T. Jones
31(No Transcript)
32Lean Project Delivery System
Purposes
Design Concepts
Product Design
Fabrication Logistics
Commissioning
Alteration Decommissioning
Constraints
Process Design
Operations Maintenance
Detailed Engineering
Installation
Project Definition
Lean Design
Lean Supply
Lean Assembly
Use
Production Control
Work Structuring
Learning Loops
33 Traditional versus Lean
- Decisions are made sequentially by specialists
and thrown over the wall - Product design is completed, then process design
begins - Not all product life cycle stages are considered
in design - Activities are performed as soon as possible
- Downstream players are involved in upstream
decisions, and vice-versa - Product and process are designed together
- All product life cycle stages are considered in
design - Activities are performed at the last responsible
moment
34 Traditional versus Lean
- Separate organizations link together through the
market, and take what the market offers - Participants build up large inventories to
protect their own interests - Stakeholder interests are not aligned
- Learning occurs sporadically
- Systematic efforts are made to optimize supply
chains - Buffers are sized and located to perform their
function of absorbing system variability - Stakeholder interests are aligned
- Learning is incorporated into project, firm, and
supply chain management
35Profitability Increase
36Waste reduction in a design office
37Moving from lean projects to lean enterprises
the Toyota Way
- Base management decisions on long-term philosophy
even at the expense of short-term financial goals - Create continuous process flow to bring problems
to the surface - Use pull systems to avoid overproduction
- Level out the workload (heijunka) work like the
tortoise, not the hare - Build culture of stopping to fix problems to get
quality right the first time - Standardized tasks are the foundation for
continuous improvement and employee empowerment - Use visual control so no problems are hidden
- Use only reliable, thoroughly tested technology
that serves people and processes - Grow leaders who thoroughly understand the work,
live the philosophy, and teach it to others - Develop exceptional people and teams who follow
your companys philosophy - Respect your extended network of partners and
suppliers by challenging them and helping them
improve - Go and see for yourself to thoroughly understand
the situation (genchi genbutsu) - Make decisions slowly by consensus, thoroughly
considering all options implement rapidly - Become a learning organization through relentless
reflection (hansei) and continuous improvement
(kaizen) -
38Summary
- What is Lean Project Delivery?
- A third form of production system design, neither
craft nor mass, adapted for capital projects. - The lean ideal Give customers what they want,
deliver it instantly, without waste. - Where did it come from?
- Lean production was invented by Toyota, then
adapted for construction by researchers and
practitioners associated with the International
Group for Lean Construction. - Where is it going?
- From manufacturing to all industries,
including those in which production systems take
the form of projects construction, product
development, research, software engineering, air
and sea shipbuilding, custom fabrication, work
order systems, health care delivery, oil field
development.
39Workshop Objectives
- Understand Lean Project Delivery
- Where did it come from?
- What is it? How is it different?
- Prepare for the pre-construction phase of your
projects - Coordination and control through reliable
promising - Set based design strategy
- Maximizing value for money through target costing
- Collaborative design process
- Launch project planning
- Business case, stakeholder map, stakeholder
values - Constraints financial, location, regulatory
- Organizational and contractual structure project
governance - What will we start doing? What will we stop
doing?
40(No Transcript)
41Traditional Management Increases Variability
Plan Reliability Data
- Company 1 33
- Company 2 52
- Company 3 61
- Company 4 70
- Company 5 64
- Company 6 57
- Company 7 45
- Average 54
42The Physics of Coordination
43The Last Planner System of Production Control
44Master Schedule
45Functions of Master Schedules
- Demonstrate the feasibility of completing the
work within the available time. - Develop and display execution strategies.
- Determine when long lead items will be needed.
- Identify milestones important to client or
stakeholders.
46(No Transcript)
47(No Transcript)
48Reverse Phase (Pull) Scheduling
- Produce the best possible plan by involving all
with relevant expertise and by planning near
action. - Assure that everyone in a phase understands and
supports the plan by developing the schedule as a
team. - Assure the selection of value adding tasks that
release other work by working backwards from the
target completion date to produce a pull
schedule. - Publicly determine the amount of time available
for contingency and decide as a group how to
spend it.
49(No Transcript)
50Functions of the Lookahead Process
- Make work ready by identifying and removing
constraints - Shape work flow sequence and rate
- Match work flow and capacity
- Maintain a backlog of ready work
- Develop detailed plans for how work is to be done
51Constraints Analysis Design
Project Mega Bldg Report Date 3 Nov
C o n s t r a
i n t s ______________________________
_________________________________________________
52The Last Planner System of Production Control
53Quality Characteristics of Weekly Work Plans
- Definition
- Soundness
- Sequence
- Size
- Learning
54(No Transcript)
55Reasons for Non-Completion
56(No Transcript)
57(No Transcript)
58Summary Recommendations for Production Control
- Limit master schedules to milestones and long
lead items. - Produce phase schedules with the team that will
do the work, using a backward pass, and making
slack explicit. - Drop activities from the phase schedule into a 3
week lookahead, screen for constraints, and
advance only if constraints can be removed in
time. - Learn to make reliable promises.
- Track PPC and act on reasons for failure to keep
promises.
59Plan Failure 1
- Failed to transmit site plan package to the
general contractor as promised. Reason provided
conflicting demandsI was overwhelmed during
this period. 5 whys revealed that the required
time was underestimated for collecting the
information needed because the Citys
requirements for traffic analysis were different
and greater than had been assumed.
60Can Last Planner be Applied to Design?
61PPC on a Design-Build Project
62Case Study - Theater Project
- PPC for the various project teams
- Site/Civil 78
- Structural 35
- Enclosure/Architectural 62
- Mechanical / Electrical 55
- Theatrical / Interiors 52
- Project Support 85
- Total Average PPC 61.6
63Plan Failure Analysis 1
64Plan Failure Analysis 2
65Plan Failure Analysis 3
66Plan Failure Analysis
- Failures were generally the result of not
understanding something critically important-as
opposed to mistakes in calculation or otherwise
within the design act. - The fundamental causes of non-completion were
failure to apply quality criteria to assignments
and failure to learn from plan failures through
analysis and action on reasons.
67Nature of the Design Process Implications for
Design Production Control
- PPC of design processes is not very high.
- Some type of task explosion or decomposition is
needed in order to identify what needs to be done
to make assignments ready to be performed. - Given the nature of the design process, such
explosion must occur near task execution.
68The Physics of Design
- Design is essentially a value generating process.
- Design generates value within constraints and
competing purposes. - Design is the domain of wicked problems.
- The flow of work in design is iterative and
generative. - Design criteria are the critical issue in design
work flow control.
69Questions or Comments?
70Workshop Objectives
- Understand Lean Project Delivery
- Where did it come from?
- What is it? How is it different?
- Prepare for the pre-construction phase of your
projects - Collaborative design process
- Coordination and control through reliable
promising - Set based design strategy
- Maximizing value for money through target costing
- Launch project planning
- Business case, stakeholder map, stakeholder
values - Constraints financial, location, regulatory
- Organizational and contractual structure project
governance - What will we start doing? What will we stop
doing?
71Lean Design An Overview
72Needless (Negative) Iterations
From Lottaz, et al. Constraint-Based Support for
Collaboration in Design and Const. Jrnl of
Computing in Civ.Eng., 1/99
73Set Based Design
- Set-based engineering has been used to name
Toyotas application of a least commitment
strategy in its product development projects.
That strategy could not be more at odds with
current practice, which seeks to rapidly narrow
alternatives to a single point solution, but at
the risk of enormous rework and wasted effort. - It is not far wrong to say that standard design
practice currently is for each design discipline
to start as soon as possible and coordinate only
when collisions occur. This has become even more
common with increasing time pressure on projects,
which would be better handled by sharing
incomplete information and working within
understood sets of alternatives or values at each
level of design decision making e.g., design
concepts, facility systems, facility subsystems,
components, parts. -
74Set-Based Design
- Preventing engineers from making premature
design decisions is a big part of my job.
(Toyotas Manager of Product Engineering)
75Set Based Design
- Toyotas product development process is
structured and managed quite differently even
than other Japanese automobile manufacturers.
Toyotas product development - Develops multiple design alternatives.
- Produces 5 or more times the number of physical
prototypes than their competitors. - Puts new products on the market faster than their
competitors and at less cost.
76Negative vs Positive Iteration
- We suspect that Toyotas superior performance is
a result of reducing negative iteration, and that
the reduction is more than sufficient to offset
time wasted on unused alternatives. Negative
iteration occurs as a result of each design
discipline rushing to a point solution, then
handing off that solution to downstream
disciplines in a sequential processing mode.
77Making Decisions at the Last Responsible Moment
- Whether or not one has the time to carry
alternatives forward, would seem to be a function
of understanding when decisions must be made lest
we lose the opportunity to select a given
alternative. We need to know how long it takes to
actually create or realize an alternative.
Understanding the variability of the delivery
process, we can add safety-time to that lead-time
in order to determine the last responsible
moment. Choosing to carry forward multiple
alternatives gives more time for analysis and
thus can contribute to better design decisions.
78Advantages of Set-Based Design
- 1. Enables reliable, efficient communication.
- Vs point-based design, in which each change may
invalidate all previous decisions. - 2. Waste little time on detailed designs that
cant be built. - 3. Reduces the number and length of meetings.
- 4. Bases the most critical, early decisions on
data. - 5. Promotes institutional learning.
- 6. Helps delay decisions on variable values until
they become essential for completion of the
project. - 7. Artificial conflicts and needless iterations
of negotiations are avoided. - 8. The initiator of a change retains
responsibility for maintaining consistency.
79A Set Based Design Strategy
- Identify and sequence key design decisions
- For each decision, generate alternatives and the
criteria for evaluating them - Determine the last responsible moment for
decision making - Evaluate and choose from alternatives
- Document each key design decision alternatives,
criteria, evaluation selection
80Workshop Objectives
- Understand Lean Project Delivery
- Where did it come from?
- What is it? How is it different?
- Prepare for the pre-construction phase of your
projects - Collaborative design process
- Set based design strategy
- Coordination and control through reliable
promising - Maximizing value for money through target costing
- Launch project planning
- Business case, stakeholder map, stakeholder
values - Constraints financial, location, regulatory
- Organizational and contractual structure project
governance - What will we start doing? What will we stop
doing?
81Making a Virtue of Necessity
- Lower the river to reveal the rocks
- Systematically stress the production system to
identify needed improvements - Buffer the production system so experiments can
be performed without risk of violating commercial
agreements - Price Profit Cost
- Artificially manipulate constraints to drive
innovation
82(No Transcript)
83How to lower the river on capital facility
projects
- 1) reduce the amount of money made available for
design and construction of facilities with
pre-specified functionalities, capacities and
properties - 2) increase the minimum acceptable ROI, or
- 3) increase the valued facility attributes
required beyond what current best practice can
deliver for a given cost.
84St. Olafs College Field House
85Comparing Projects
86Setting the Target Cost
- Assess the business case (demand, revenues),
taking into account the cost to own and use the
facility (business operations, facility
operations, facility maintenance, adaptability,
durability) as well as the cost to acquire it. - Determine minimum acceptable ROI or maximum
available funds. - Answer the question If we had a facility with
which we could achieve our specific purposes, and
if we could have that facility within our
constraints of cost, location and time, would we
do it? - If the answer is positive, and if project
delivery is not considered risky, fund the
project. If the answer is positive and project
delivery is considered risky, fund a feasibility
study to answer the question Can we have the
facility we have in mind, will it enable us to
achieve our purposes, and can we acquire it
within our constraints? - Start a feasibility study by selecting key
members of the team that will deliver the project
if judged feasible. - Determine and rank stakeholder values.
87Setting the Target Cost
- Explore how the facility will perform in use
through process modeling and simulation. - Scope the facility that will deliver the values.
- Determine the expected cost if the facility were
provided at current best practice. - If expected cost exceeds available funds or
violates ROI, attack the gap with innovations in
product/process design, restructure commercial
relationships, etc. - If expected cost still exceeds available funds or
violates ROI, adjust scope by sacrificing lesser
ranking values. - If the scope and values that support the business
case can be provided within financial
constraints, fund the project. Otherwise, kill
the project.
88Project Definition Process
89Designing to the Target Cost
- Allocate the target cost to systems, subsystems,
components, - Form teams by facility system substructure,
superstructure, envelope, HVAC, lighting, etc. - Establish a personal relationship between
designers and cost modellers/construction experts
in each system team. - Have cost modellers/construction experts provide
cost guidelines to designers up front, before
design begins. - Require designers to consult cost modellers on
the cost implications of design alternatives
before they are developed.
90Designing to the Target Cost
- Incorporate value engineering/value management
tools and techniques into the design process. - Periodically convene all teams together to make
sure they are not sacrificing project-level value
to local optimization. - When previously agreed, by meeting or beating the
target cost, release funds for adding back lower
ranking values or other scope additions valuable
to the client. - Schedule cost reviews and client signoffs, but
develop design and cost concurrently. - Use computer models to automate costing to the
extent feasible.
91(No Transcript)
92Tools
- Feasibility Study With Detailed Budget (Target)
- Engage all parties at earliest possible time
- Scheduling (At SRMC the end users were divided
into clear groups for SDs and beyond) - Use a room data sheet
- Full engagement from the Affiliate
- Estimating at the design table
- Empowerment to declare a breakdown
- Clear conditions of satisfaction to teams
- Willingness to say no (need to have or want to
have) - Target team matrix (Organize Teams)
- Adopt a Budget Realignment Approach and Tool
93Workshop Objectives
- Understand Lean Project Delivery
- Where did it come from?
- What is it? How is it different?
- Prepare for the pre-construction phase of your
projects - Coordination and control through reliable
promising - Set based design strategy
- Maximizing value for money through target costing
- Collaborative design process
- Launch project planning
- Business case, stakeholder map, stakeholder
values - Constraints financial, location, regulatory
- Organizational and contractual structure project
governance - What will we start doing? What will we stop
doing?
94(No Transcript)
95Workshop Objectives
- Understand Lean Project Delivery
- Where did it come from?
- What is it? How is it different?
- Prepare for the pre-construction phase of your
projects - Coordination and control through reliable
promising - Set based design strategy
- Maximizing value for money through target costing
- Collaborative design process
- Launch project planning
- Business case, stakeholder map, stakeholder
values - Constraints financial, location, regulatory
- Organizational and contractual structure project
governance - What will we start doing? What will we stop
doing?