Please comply with the Lean Construction Institute’s
Usage Policies and Attribution Guidelines at
http://www.leanconstruction.org/usage.pdf
when using this file. Thank you.
MSU Construction Industry Research and Education Center (CIREC)
Executive Summary
of Lean Construction
LCI Chicago
DrinkerBiddle & Reath, LLP
Mar 22, 2012
Tariq Abdelhamid, PhD
Construction Industry Research and Education Center
Michigan State University
©T.Abdelhamid (2012)
www.CIREC.msu.edu
1
MSU Construction Industry Research and Education Center (CIREC)
“A successful organization consists of
people, each fiercely determined, to be
absolutely the best at whatever they do.”
-- Norman Bodek
©T.Abdelhamid (2012)
www.CIREC.msu.edu
2
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction
Lean Construction ≠ Lean Production
Lean Construction >> Lean Production
in Construction
©T.Abdelhamid (2012)
www.CIREC.msu.edu
3
MSU Construction Industry Research and Education Center (CIREC)
Outline
Lean Construction at MSU
What is Lean Construction?
Benefits of Lean Construction
Lean Construction Methods
Implementation Strategies and MSU Pilot Project
©T.Abdelhamid (2012)
www.CIREC.msu.edu
4
MSU Construction Industry Research and Education Center (CIREC)
Michigan State University
•
•
•
•
•
•
•
•
Land Grant Research University established 1855
47,000 Students on 1 campus
5200 Acres
25 Million square feet of facilities
$1.8 Billion annual budget
$100 Million annual construction payments
Design-Bid-Build and CM-at-Risk
Largest on campus housing system in the USA
©T.Abdelhamid (2012)
www.CIREC.msu.edu
5
MSU Construction Industry Research and Education Center (CIREC)
The MSU Concern
• Why do we have budget overruns
and schedule delays?
– Work waiting
for workers
©T.Abdelhamid (2012)
– Workers waiting
for work
www.CIREC.msu.edu
6
MSU Construction Industry Research and Education Center (CIREC)
Teicholz, P (2004). “Labor Productivity Declines in the Construction Industry: Causes and
Remedies.” AECbytes, Viewpoint #4.
©T.Abdelhamid (2012)
www.CIREC.msu.edu
7
MSU Construction Industry Research and Education Center (CIREC)
The MSU Concern
• Why do “workers wait for work”?
• Why does “work wait for workers”?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
8
MSU Construction Industry Research and Education Center (CIREC)
Why?
Production Variation
Overburden
Workload
Variation
Capability
Waste
Plan Failures and Execution Failures
©T.Abdelhamid (2012)
www.CIREC.msu.edu
9
MSU Construction Industry Research and Education Center (CIREC)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
10
MSU Construction Industry Research and Education Center (CIREC)
Capacity and Cycle Time
©Lean Construction Institute
Cycle Time
Rush hour
5pm
2am
Load on Resources
©T.Abdelhamid (2012)
www.CIREC.msu.edu
100%
11
MSU Construction Industry Research and Education Center (CIREC)
Construction “Traffic Jam”
©T.Abdelhamid (2012)
www.CIREC.msu.edu
12
MSU Construction Industry Research and Education Center (CIREC)
Construction “Traffic Jam”
©T.Abdelhamid (2012)
www.CIREC.msu.edu
13
MSU Construction Industry Research and Education Center (CIREC)
Discussion
• What workload variation do you see at
your jobsite?
• How does workload variation affect your
work (estimating, scheduling, construction
operations, value to owner) ?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
14
MSU Construction Industry Research and Education Center (CIREC)
Why?
•Advanced detailed planning not
possible
•Congestion
•Out-of-sequence work
•Obstruction due to stocks of materials
•Work under-equipped
•Interruptions due to lack of materials,
tools or instruction
•So much can go wrong
©T.Abdelhamid (2012)
www.CIREC.msu.edu
15
MSU Construction Industry Research and Education Center (CIREC)
Courtesy: DPR (2010)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
16
MSU Construction Industry Research and Education Center (CIREC)
Why?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
17
The Wall
MSU Construction Industry Research and Education Center (CIREC)
Why?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
18
MSU Construction Industry Research and Education Center (CIREC)
Why?
• We are contracted to “behave”
poorly
Courtesy: Stirrett (2011)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
19
MSU Construction Industry Research and Education Center (CIREC)
Imagine an automobile assembly line where each step
along the line is undertaken by a different company
with its own financial interest and separate labor
union!...Present [ construction] practice is impossible.
The client asks an architect to design something
specifically for him. In making drawings the architect
will specify various components out of catalogues. He
is nearly always restricted to elements that are already
manufactured. Then the contractor, who has usually
had nothing to do with the design process, examines
the drawings and makes his bid. Industry supplies raw
materials and components and has little contact with
the contractor. The various building material
manufacturers make their components totally
independent of each other…It is an absurd Industry!
Moshe Safdie
©T.Abdelhamid (2012)
www.CIREC.msu.edu
20
MSU Construction Industry Research and Education Center (CIREC)
Partnering
©T.Abdelhamid (2012)
www.CIREC.msu.edu
21
MSU Construction Industry Research and Education Center (CIREC)
Root Cause: Project Approach
Operating System
Decomposition; Management by Exception
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
22
MSU Construction Industry Research and Education Center (CIREC)
The MSU Question
• “Isn’t there a project delivery
system out there that will prevent
me from having to ask for more
money and time from the Board
of Trustees?” Fred Poston - VPFO
©T.Abdelhamid (2012)
www.CIREC.msu.edu
23
MSU Construction Industry Research and Education Center (CIREC)
“There really is another way,
if only he could stop … for a moment
and think of it”—
--AA Milne, Winnie-the-pooh, 1926
www.CIREC.msu.edu
24
MSU Construction Industry Research and Education Center (CIREC)
• The industry believes that if their job made
money and was on time, then why should it
matter how they got from start to finish.
-- Linbeck Construction
• We need a change in culture. We need to
stop just doing construction for the money
and have pride in our work. We need to
look at the value of the whole, because the
current structure does not provide
incentives to provide more value.
-- Skender Construction
©T.Abdelhamid (2012)
www.CIREC.msu.edu
25
MSU Construction Industry Research and Education Center (CIREC)
Observer
Action
Outcomes
Different Outcome =
Change Action
©T.Abdelhamid (2012)
www.CIREC.msu.edu
26
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction View
Operating System
Decomposition; Management by Exception
Integration; Management By Means
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
27
MSU Construction Industry Research and Education Center (CIREC)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
28
MSU Construction Industry Research and Education Center (CIREC)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
29
MSU Construction Industry Research and Education Center (CIREC)
"Management is that process of openness,
listening and eliciting commitments that
includes a concern for the articulation
and activation of the network of
commitments, primarily produced
through promises and requests allowing for
the autonomy of the productive units"
Fernando Flores
©T.Abdelhamid (2012)
www.CIREC.msu.edu
30
MSU Construction Industry Research and Education Center (CIREC)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
31
MSU Construction Industry Research and Education Center (CIREC)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
32
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
LEAN
PROGRAMMING
Purposes
Operation
Maintenance
LEAN
OPERATIONS
Design
Criteria
Alternation
Decommissioning
Commissioning
LEAN
ASSEMBLY
Design
Concepts
Work
Structuring
&
Production
Control
LEAN
DESIGN
Process
Design
Product
Design
Installation
Fabrication
Logistics
Detailed
Engineering
LEAN
SUPPLY
©T.Abdelhamid (2012)
www.CIREC.msu.edu
33
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
Work
Structuring
&
Production
Control
©T.Abdelhamid (2012)
www.CIREC.msu.edu
34
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
Work
Structuring
&
Production
Control
©T.Abdelhamid (2012)
www.CIREC.msu.edu
35
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
Work
Structuring &
Production
Control
©T.Abdelhamid (2012)
www.CIREC.msu.edu
36
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
Work
Structuring
&
Production
Control
©T.Abdelhamid (2012)
www.CIREC.msu.edu
37
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
Work
Structuring
&
Production
Control
©T.Abdelhamid (2012)
www.CIREC.msu.edu
38
MSU Construction Industry Research and Education Center (CIREC)
Outline
Lean Construction at MSU
What is Lean Construction?
Benefits of Lean Construction
Lean Construction Methods
Implementation Strategies and MSU Pilot Project
©T.Abdelhamid (2012)
www.CIREC.msu.edu
39
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction Institute
(LCI)
“Lean Construction is a production
management-based approach to project
delivery – a new way to design and build
capital facilities to maximize value and
minimize waste….”
©T.Abdelhamid (2012)
www.CIREC.msu.edu
40
MSU Construction Industry Research and Education Center (CIREC)
AGC Of America
“Lean Construction is a set of ideas,
practiced by individuals in the construction
industry, based in the holistic pursuit of
continuous improvements aimed at
minimizing costs and maximizing value to
clients in all dimensions of the built and
natural environment: planning, design,
construction, activation, operations,
maintenance, salvaging, and recycling.”
©T.Abdelhamid (2012)
www.CIREC.msu.edu
41
MSU Construction Industry Research and Education Center (CIREC)
“ LC is the impeccable alignment
and continuous improvement of
the entire supply chain, from
programming to operation, in order
to maximize value and minimize
waste on capital projects.”
©T.Abdelhamid (2012)
www.CIREC.msu.edu
42
MSU Construction Industry Research and Education Center (CIREC)
Outline
Lean Construction at MSU
What is Lean Construction?
Benefits of Lean Construction
Lean Construction Methods
Implementation Strategies and MSU Pilot Project
©T.Abdelhamid (2012)
www.CIREC.msu.edu
43
MSU Construction Industry Research and Education Center (CIREC)
Benefits of Lean Construction
"First, Lean is simply systematically
applied common sense. Second, it is
counterintuitive. Unlike anything I've
Neenan
seen before, it causes us to rethink how
Company
we manage work. And, finally we saw
reduced
it as an opportunity to deliver high
project times
value facilities to the marketplace in
and cost by
up to 30%
shorter time." Paul Reiser, Boldt‘s Vice
president for Production Process
Innovation
“If we can get the construction
community to embrace these
methodologies, it will make every
person perform their jobs better.
And I think that’s exciting. It will
make us better, more efficient, and
probably more profitable” Dan
Wojtkowski, network director for
design and construction – SSM
Healthcare
©T.Abdelhamid (2012)
www.CIREC.msu.edu
"Lean lowers the
'hair-on-fire' index
on our jobs."
Linbeck
Construction
44
MSU Construction Industry Research and Education Center (CIREC)
Intrinsic Value of Lean
• 50% Fewer Injuries
• 20% Cost Savings
• 20% Reduction in Time
Baker Concrete
©T.Abdelhamid (2012)
www.CIREC.msu.edu
45
MSU Construction Industry Research and Education Center (CIREC)
Intrinsic Value of Lean
ENR ( Feb
2012)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
46
MSU Construction Industry Research and Education Center (CIREC)
Production Evolution
1.40
Below Budget (Making $$)
1.20
Productivity (Budget / Actual)
86%
At Budget
1.00
65%
0.80
Average Productivity before LPSI
0.60
0.40
Over Budget (Losing $$)
0.20
Last Planner System Implemented;
PPC increasing
0.00
1
2
3
4
5
MONTHS
6
7
8
Presentation materials from 3rd Annual Lean Congress. This material may be copied freely as long at
it includes the copyright statement herein. Luis Alarcon; www.leanconstruction.org
©T.Abdelhamid (2012)
www.CIREC.msu.edu
47
MSU Construction Industry Research and Education Center (CIREC)
Perfecting Multitrade Prefab:
- A 484,000-sq-ft hospital in Dayton, Ohio
-prefabbing 178 identical patient rooms
and 120 overhead corridor utility racks
sliced more than two months from
construction and 1% to 2% off the cost of
the $152-million building, which is 90%
complete.
©T.Abdelhamid (2012)
www.CIREC.msu.edu
48
MSU Construction Industry Research and Education Center (CIREC)
Discussion
• Share examples of pre-fab from previous
or ongoing projects.
• Is pre-fab enough to prevent workers from
waiting for work? How about work waiting
for workers?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
49
MSU Construction Industry Research and Education Center (CIREC)
Outline
Lean Construction at MSU
What is Lean Construction?
Benefits of Lean Construction
Lean Construction Methods
Implementation Strategies and MSU Pilot Project
©T.Abdelhamid (2012)
www.CIREC.msu.edu
50
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction View
Operating System
Decomposition; Management by Exception
Integration; Management By Means
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
51
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction began on site
+
Labor
$/hr (constant)
+
=
Material
Equipment
$ (constant)
$/hr (constant)
output (uncontrollable)
Direct Cost
of Construction
output (controllable)
Lean Construction improves output by removing non-value adding tasks
(waste) and focusing on reliable workflow
©T.Abdelhamid (2012)
www.CIREC.msu.edu
52
MSU Construction Industry Research and Education Center (CIREC)
WASTE IN CONSTRUCTION
Will owners always be willing to pay for the waste and the productive time?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
53
MSU Construction Industry Research and Education Center (CIREC)
There is a point of no return in trying to increase productive time…remove
waste first….
©T.Abdelhamid (2012)
www.CIREC.msu.edu
54
MSU Construction Industry Research and Education Center (CIREC)
Activity Work Breakdown
Value Add
WASTE
Essential
Non-Value
Add
Non-Value
Add
•
•
•
•
Placing concrete
Hanging gypsum board
Welding Pipe
Erecting Steel
•
•
•
•
•
•
•
Walking to get forms
90-95%
Running welding leads
Shaking out steel after delivery
Relocate material on site
Punchlist activities
Looking for tools
Moving materials (approx. 40%)
Adapted from Walbridge
©T.Abdelhamid (2012)
www.CIREC.msu.edu
55
MSU Construction Industry Research and Education Center (CIREC)
Waste Examples….
Waiting for Concrete
Inventory
Correction
Punchlist
©T.Abdelhamid (2012)
www.CIREC.msu.edu
56
MSU Construction Industry Research and Education Center (CIREC)
More Waste Examples….
Transportation & Multiple Handling
Motion
©T.Abdelhamid (2012)
www.CIREC.msu.edu
57
MSU Construction Industry Research and Education Center (CIREC)
Worst waste
©T.Abdelhamid (2012)
www.CIREC.msu.edu
58
MSU Construction Industry Research and Education Center (CIREC)
7 (8, 9, 10) Forms of Waste
Anywhere work is performed, waste is being generated
and must be removed.
CORRECTION
WAITING
Repair or
Rework
Any wasted motion
to pick up parts or
stack parts. Also
wasted walking
Any non-work time
waiting for tools,
supplies, parts, etc..
PROCESSING
Doing more work than
is necessary
Types
of
Waste
INVENTORY
Maintaining excess
inventory of raw mat’ls,
parts in process, or
finished goods.
©T.Abdelhamid (2012)
MOTION
OVERPRODUCTION
Producing more
than is needed
before it is needed
CONVEYANCE
Wasted effort to transport
materials, parts, or
finished goods into or
out of storage, or
between
processes.
www.CIREC.msu.edu
Kentucky Center for
Experiential Education
1998 / Shingo 1989
59
MSU Construction Industry Research and Education Center (CIREC)
Discussion
• Share examples of waste from previous or
ongoing projects, or in your office work.
• What did you do about these wastes?
©T.Abdelhamid (2012)
www.CIREC.msu.edu
60
MSU Construction Industry Research and Education Center (CIREC)
Waste Removal
•
•
•
•
•
•
Unproductive use of resources
Anything that doesn’t add value
Use Value Stream (Chain) Mapping
5S
Visualization (visual site)
Dedicated Continuous Improvement
Events (Kaizen)
• Others
©T.Abdelhamid (2012)
www.CIREC.msu.edu
61
MSU Construction Industry Research and Education Center (CIREC)
Problem Solving
• Deming wheel of Improvement (PDCA)
-Methodically Improve processes
-Continuously increase efficiency
By Karn G. Bulsuk
©T.Abdelhamid (2012)
www.CIREC.msu.edu
62
MSU Construction Industry Research and Education Center (CIREC)
Lean Assembly…..5S
• Sort…Separate…Scrap…Standardize…Sustain
• Everything in its place and a place for everything!
BEFORE AFTER
Adapted from Walbridge
©T.Abdelhamid (2012)
www.CIREC.msu.edu
63
MSU Construction Industry Research and Education Center (CIREC)
Sort out and remove all materials, tools
and equipment that are not necessary to
do the job from the work area
Adapted from Walbridge
©T.Abdelhamid (2012)
www.CIREC.msu.edu
64
MSU Construction Industry Research and Education Center (CIREC)
Mastroianni and Abdelhamid (2003)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
65
MSU Construction Industry Research and Education Center (CIREC)
Mistake Proofing
Source: DPR, Inc., Camino Medical Project
©T.Abdelhamid (2012)
www.CIREC.msu.edu
66
MSU Construction Industry Research and Education Center (CIREC)
• Deliver materials
Just-in-Time
• (Justified for Time)
Reduce multiple handling
..erect from the truck
© Walbridge (images)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
67
MSU Construction Industry Research and Education Center (CIREC)
Production System Design
• All work shall be explicit as to content,
sequence, timing and outcome.
• Every connection (hand off of work) in the work
stream must be direct, and there must be a clear
way to request action and receive a response.
• The pathway for production must be simple and
direct.
• Improvements are made according to a method,
under guidance, and at the lowest possible level
in the organization.
Spear, Steven and Bowen, Kent (1999)
Decoding the DNA of the Toyota Production
System, Harvard Business Review
©T.Abdelhamid (2012)
www.CIREC.msu.edu
68
MSU Construction Industry Research and Education Center (CIREC)
Production Systems Cardinal Rule
Flow where you can…
Pull where you can’t…
Push where you must…
—John Shook
©T.Abdelhamid (2012)
www.CIREC.msu.edu
69
MSU Construction Industry Research and Education Center (CIREC)
Pull in Construction
• Delivery of material when the site is ready to receive it
(this happens now with concrete delivery because of
its short shelf life)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
70
MSU Construction Industry Research and Education Center (CIREC)
Pull in Construction
Coordination of trade work ( downstream and
upstream) using visual work triggers
Courtesy:
Weitz Company
©T.Abdelhamid (2012)
www.CIREC.msu.edu
71
MSU Construction Industry Research and Education Center (CIREC)
Pull in Construction
• Scheduling trade work using the weekly work
planning of the Last Planner™
GC
GC
Fire
Prote
ction
GC
Concrete
Mech
anical
AV GC Millwork
Paint
Architect
Civil eng.
Owner
GC
Steel
fabricator
Excavation
Concrete
Pull (Phase)
Planning…a
step in the Last
Planner®
System.
©T.Abdelhamid (2012)
www.CIREC.msu.edu
72
MSU Construction Industry Research and Education Center (CIREC)
Look ahead ( Make Ready) and Weekly Planning.. steps
in the Last Planner® System
©T.Abdelhamid (2012)
www.CIREC.msu.edu
73
MSU Construction Industry Research and Education Center (CIREC)
COMMITMENT
WORKFLOW
Inquiry
1 Request
“Will You?”
Negotiation
Accepted
PO
Submitted
Signed
CUSTOMER
4 Declare
Satisfaction
“Thank you”
Conditions of
Satisfaction
&
Date of
Completion
3
PROVIDER
2 COMMIT
“I Promise I WILL”
Declare
Complete
“I’m Done”
Commitment Maps Identify Improvement Opportunities
©T.Abdelhamid (2012)
www.CIREC.msu.edu
74
MSU Construction Industry Research and Education Center (CIREC)
Unless commitment is made, there are only promises
and hopes... but no plans. - Peter Drucker
Committing to Weekly Work – by last planners
• Definition
• Soundness
• Sequence
• Size
• Learning
• Safe Safe Safe Safe Safe!!!!!!!
©Lean Construction Institute, 2001, adapted
©T.Abdelhamid (2012)
www.CIREC.msu.edu
75
MSU Construction Industry Research and Education Center (CIREC)
Daily Huddles
Team meetings with all
subcontractors and owner
representatives to review
project by area of operation
Adapted from Walbridge
©T.Abdelhamid (2012)
www.CIREC.msu.edu
76
MSU Construction Industry Research and Education Center (CIREC)
Baker Morning Huddle
Adapted from Walbridge
©T.Abdelhamid (2012)
www.CIREC.msu.edu
77
MSU Construction Industry Research and Education Center (CIREC)
Daily Huddles
Adapted from Paul Reiser – Boldt Inc.
©T.Abdelhamid (2012)
www.CIREC.msu.edu
78
MSU Construction Industry Research and Education Center (CIREC)
Design Daily
Huddles
©T.Abdelhamid (2012)
www.CIREC.msu.edu
79
MSU Construction Industry Research and Education Center (CIREC)
Production Planning Reliability Focus
The variation in
completion of
trade
commitments, on a
weekly basis, is a
major source of
problems on
projects – Lean
Construction
addresses this
issue using the
Last Planner®
System
©T.Abdelhamid (2012)
www.CIREC.msu.edu
80
MSU Construction Industry Research and Education Center (CIREC)
Tracking reasons for unmet trade weekly commitments..
©T.Abdelhamid (2012)
www.CIREC.msu.edu
81
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction View
Operating System
Decomposition; Management by Exception
Integration; Management By Means
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
82
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction View
Operating System
Decomposition; Management by Exception
Integration; Management By Means
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
83
MSU Construction Industry Research and Education Center (CIREC)
Work Structuring
Graphics Courtesy of DPR Construction © 2011 All Rights Reserved
©T.Abdelhamid (2012)
www.CIREC.msu.edu
84
MSU Construction Industry Research and Education Center (CIREC)
Work Structuring
©T.Abdelhamid (2012)
www.CIREC.msu.edu
85
MSU Construction Industry Research and Education Center (CIREC)
Work Structuring Using BIM
Source: Linbeck Group
©T.Abdelhamid (2012)
www.CIREC.msu.edu
86
MSU Construction Industry Research and Education Center (CIREC)
Work Structuring &
Lean Supply
Graphics Courtesy of Walbridge © 2011 All Rights Reserved
©T.Abdelhamid (2012)
www.CIREC.msu.edu
87
MSU Construction Industry Research and Education Center (CIREC)
Work Structuring &
Lean Supply
Graphics Courtesy of DPR © 2011 All Rights Reserved
©T.Abdelhamid (2012)
www.CIREC.msu.edu
88
MSU Construction Industry Research and Education Center (CIREC)
Waste in Design
Needless (Negative) Iterations
h
x
d
e
Project Partner
Architect
Steel Fabricator
Engineer
Architect
HVAC Subcontractor
Engineer
Steel Fabricator
.....
d
(mm)
e
(mm)
h
(mm)
x
(mm)
550
550
200
200
450
400
400
650
900
900
900
800
900
900
650
650
650
650
650
730
730
500
1100
1100
1000
600
700
800
.....
.....
.....
.....
From Lottaz, et al. “Constraint-Based Support for Collaboration in Design and Const.” Jrnl of Computing in Civ.Eng., 1/99
©T.Abdelhamid (2012)
www.CIREC.msu.edu
89
MSU Construction Industry Research and Education Center (CIREC)
Set-based design dialogue
(after Mossman and Abdelhamid)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
90
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction View
Operating System
Decomposition; Management by Exception
Integration; Management By Means
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
91
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction View
Operating System
Decomposition; Management by Exception
Integration; Management By Means
Adapted from Lean Construction Institute
©T.Abdelhamid (2012)
www.CIREC.msu.edu
92
MSU Construction Industry Research and Education Center (CIREC)
Lean Project Delivery System™
LEAN
PROGRAMMING
Purposes
Operation
Maintenance
LEAN
OPERATIONS
Design
Criteria
Alternation
Decommissioning
Commissioning
LEAN
ASSEMBLY
Design
Concepts
Work
Structuring
&
Production
Control
LEAN
DESIGN
Process
Design
Product
Design
Installation
Fabrication
Logistics
Detailed
Engineering
LEAN
SUPPLY
©T.Abdelhamid (2012)
www.CIREC.msu.edu
93
MSU Construction Industry Research and Education Center (CIREC)
The Five Big Ideas (Behaviors)
Legend:
Five Big Ideas
Emergent Outcomes
Innovation
Competitive
Continuous
Improvement
Build Trust
Reliability
Graphics Courtesy of Lean Project Consulting, Inc. © 2011 All Rights Reserved
©T.Abdelhamid (2012)
www.CIREC.msu.edu
94
MSU Construction Industry Research and Education Center (CIREC)
Integrated Project Delivery Basics
- Design informed by construction,
maintenance, and operations
- Movement of money across traditional
boundaries
- Accounting transparency
- Shared gain and pain
- Party shouldering risk is the one best
suited to do so
©T.Abdelhamid (2012)
www.CIREC.msu.edu
95
MSU Construction Industry Research and Education Center (CIREC)
INTEGRATED TEAM
Graphics Courtesy of DPR
Construction © 2011 All
Rights Reserved
CORE
TEAM
Owner
A/E
Team
DESIGN/BUILD
TRADES
(EARLY SELECTION)
•Fire Protection
•Elevators
•Fire/Life Safety
•Shoring
©T.Abdelhamid (2012)
Builder
DESIGN/ASSIST
(EARLY SELECTION)
•Mechanical
•Plumbing
•Electrical
•Steel/Structure
•Skin
•Drywall
www.CIREC.msu.edu
COMMODITY
PROCURMENT
(BID LATER)
•Sitework
•Interiors
•Balance of Trades
96
Common Understanding
MSU Construction Industry Research and Education Center (CIREC)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
97
MSU Construction Industry Research and Education Center (CIREC)
Relational Contracting allows more collaboration…and the lean process known
as TVD…..
Target
Value
Design
(TVD)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
98
MSU Construction Industry Research and Education Center (CIREC)
Conventional Cost Estimating
Total Cost
Direct Cost
Indirect Cost
Overhead
Company Related
Profit
Job Related
Time Constant
©T.Abdelhamid (2012)
www.CIREC.msu.edu
Time Variable
99
MSU Construction Industry Research and Education Center (CIREC)
Target Costing (TVD)
Total Cost
Direct Cost
Indirect Cost
Overhead
Company Related
Profit
Job Related
Time Constant
©T.Abdelhamid (2012)
www.CIREC.msu.edu
Time Variable
100
MSU Construction Industry Research and Education Center (CIREC)
Target Cost - Not GMP
Project Target Cost
1
3
Project Estimated Cost
Profit
2
Project Target Cost – Project Estimated Cost = Profit
©T.Abdelhamid (2012)
www.CIREC.msu.edu
101
MSU Construction Industry Research and Education Center (CIREC)
Outline
Lean Construction at MSU
What is Lean Construction?
Benefits of Lean Construction
Lean Construction Methods
Implementation Strategies and MSU Pilot Project
©T.Abdelhamid (2012)
www.CIREC.msu.edu
102
MSU Construction Industry Research and Education Center (CIREC)
Lean Construction enabling tools
•
•
•
•
•
•
•
•
•
•
•
•
Target Value Design (TVD)
Choosing By Advantages (CBA)
BIM (Lean Design)
PDCA
Process design (Lean Design)
Offsite fabrication and JIT (Lean Supply)
Value Stream/Chain Mapping (Lean Assembly)
Visual site (Lean Assembly)
5S (Lean Assembly)
Daily crew huddles (Lean Assembly)
Last Planner ® System
A3s
©T.Abdelhamid (2012)
www.CIREC.msu.edu
103
MSU Construction Industry Research and Education Center (CIREC)
LC Levels of implementation
• Level 1: Impeccable Coordination
• Avoiding issues that prevent construction
assignments from:
• …..starting when planned
• ……..or finishing as planned.
®
Last Planner System
©T.Abdelhamid (2012)
www.CIREC.msu.edu
Construction Site
Production
104
MSU Construction Industry Research and Education Center (CIREC)
LC Levels of implementation
• Level 2 – production system design – work structuring
Design
Construction Site Production
Supply
Chain
Market
direct affect
©T.Abdelhamid (2012)
www.CIREC.msu.edu
information
105
MSU Construction Industry Research and Education Center (CIREC)
LC Levels of implementation
• Level 3 – collective commercial enterprise (Integrated Project
Delivery)
Planning &
Design
Construction Site
Production
Maintenance &
Operation
Supply
Chain
Market
direct affect
©T.Abdelhamid (2012)
www.CIREC.msu.edu
information
106
MSU Construction Industry Research and Education Center (CIREC)
Lessons Learned Implementing Lean
• “There’s no substitute for direct
observations”
• “Proposed changes should always
be structured as experiments”
• Workers and managers should
experiment as frequently as
possible
• Managers should coach, not fix
(Steven Spear: Learning to Lead At Toyoa = HRB – May 2004)
©T.Abdelhamid (2012)
www.CIREC.msu.edu
107
The Shaw Hall Renovation
Lean Project
Delivery
at Michigan State
University
LCI Chicago Mar 22, 2012
108
Checklist: Are you Ready?
 Can you live with open book?
 Can you live without a GMP maximum?
 Are you a trusting organization?
 Is the delegation of authority at the correct
level?
 What is the Scale/Size of your project
(larger can handle the learning curve
easier)?
 Will all disciplines follow the process (don’t
revert back to old ways)?
LCI Chicago Mar 22, 2012
109
The Project
Shaw Hall
LCI Chicago Mar 22, 2012
110
Shaw Hall
LCI Chicago Mar 22, 2012
111
Shaw Hall
LCI Chicago Mar 22, 2012
112
Shaw Hall Dining Center
LCI Chicago Mar 22, 2012
113
Conditions of Satisfaction
• 100% occupancy
• Increase student
satisfaction
• Increase cash sales
• Attract faculty, staff, and
off-campus students
LCI Chicago Mar 22, 2012
114
Lean/IPD Coaching
LCI Chicago Mar 22, 2012
115
% of Trade Partners and Bid Package Work
Electrical
13%
Arch. Work
Packages
34%
Mechanical
28%
Food Service
Equip.
25%
Arch. Work Packages
LCI Chicago Mar 22, 2012
Food Service Equip.
116
Mechanical
Electrical
Big Room
LCI Chicago Mar 22, 2012
117
Pull
Planning
LCI Chicago Mar 22, 2012
118
Shaw Project Commitment Log
LCI Chicago Mar 22, 2012
119
LCI Chicago Mar 22, 2012
120
Existing Floor Plan
LCI Chicago Mar 22, 2012
121
Set-based Design
Floor Plan Concept A
LCI Chicago Mar 22, 2012
122
Set-based Design
LCI Chicago Mar 22, 2012
123
LCI Chicago Mar 22, 2012
124
LCI Chicago Mar 22, 2012
125
Choosing By Advantages (CBA)
Circulation
Concepts
LCI Chicago Mar 22, 2012
126
Proposed Floor Plan
LCI Chicago Mar 22, 2012
127
A3
13th Annual LCI Congress
128
Target Discussions
LCI Chicago Mar 22, 2012
129
Target Value Graphic
LCI Chicago Mar 22, 2012
130
Target Value Graphic
LCI Chicago Mar 22, 2012
131
Courtesy of Garry Meyers – Clark Construction
Five Big Ideas (courtesy LPC, Inc)
Innovation
Competitive
Continuous
Improvement
Build Trust
Reliability
LCI Chicago Mar 22, 2012
132
Risk Pool
35%
Five Big Ideas
65%
CM
LCI Chicago Mar 22, 2012
133
Scorecard
LCI Chicago Mar 22, 2012
134
Performance Based Compensation
LCI Chicago Mar 22, 2012
135
Performance Based Compensation
LCI Chicago Mar 22, 2012
136
136
What are we learning?
• Estimating-based design
• Value engineering the product and
process
• Reallocation of contingency funds
• Vetting unit prices to remove profits and
contingencies
• Monetizing construction savings from
anticipated better coordination
LCI Chicago Mar 22, 2012
137
137
What are we learning?
LCI Chicago Mar 22, 2012
138
What are we learning?
• Personalities!
•
•
•
•
Contracts don’t change behaviors
It’s okay to make legitimate mistakes
Find solutions not “who did it”
People are not problems – they are problem
identifiers and solvers
• Hard is soft and soft is hard!
• Human interaction versus information
exchange
• Learning through PDCA
LCI Chicago Mar 22, 2012
139
139
Next Time
• Get the right people on the bus and have
them sit in the right places too!
• Targets for all ( A/E, CM, and Trades)
• Set targets early
• Savings plan (?)
• All in the IFOA/IPD (?)
• Insist that learning something new be part
of every meeting ( Bill Seed – UHS); Follow
PDCA
LCI Chicago Mar 22, 2012
140
140
People Quotes…..
 The single most important ingredient to
success is the ability to deal with people
– Theodore Roosevelt
 People don’t care how much you know
until they know how much you care –
Joe Takash
LCI Chicago Mar 22, 2012
141
141
Time Permitting
 Tools vs. Concepts
• Change our thinking first then act …if we rush into
action, we stop learning and make tomorrow a
reenactment of yesterday….
• Formula, then why it works….
• Cerebral vs. Kinetic
• “Everybody is a genius. But if you judge a fish by
its ability to climb a tree, it will live its whole life
believing that it is stupid.” ― Albert Einstein
LCI Chicago Mar 22, 2012
142
142
Time Permitting
Change
“No one can force change on anyone else. It has to
be experienced. Unless we invent ways where
paradigm shifts can be experienced by large numbers
of people, then change will remain a myth.” ---Eric
Trist
“Change Anything: The New Science of Personal
Success,” Patterson, K. et al (2011)
LCI Chicago Mar 22, 2012
143
143
Takeaways/Question
s
LCI Chicago Mar 22, 2012
144
144