Linbeck Lean Project Delivery
Introduction
 Who I am not?



I am not a Lean consultant
I have nothing to sell and I am not being paid to be here
I am not an academic with a hypothesis to prove
 Who am I?



President & CEO for Linbeck Group LLC
I am a builder; have never done anything else
I have a passion for the construction industry and finding
ways to improve it
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 1
Lean Definition
 What is Lean Construction?
“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.”
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 2
Why?
 Why did Linbeck start doing this more than 10 years
ago?
Competitive Reasons
 Why should others do it?
To survive!
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 3
Don’t We Do This Already?
 Some say yes – Life is easy; they already have all the
answers.
 Those who say no - Should they feel compelled to do
something about it?
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 4
Yes or No?
 Not according to Government Statistics
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 5
Industry Reliability Model
Reliability
90%
Lost Opportunity
Industry Wastes 40-50%
75%
50%
Construction
Industry Norm
25%
10%
completion
start
Time
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 6
Construction Professional?
 Do you think the best and brightest want to work this
way?
 Sounds like a career of endless issues and unnecessary
risk.
 Are you considered a professional because you
survived it?
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 7
Value/Waste Relation
VARIABILITY
WASTE
VALUE
PREDICTABILITY
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Slide 8
Waste Types: Discrete, Synergistic, Systemic
Discrete
DiscreteWaste
Waste (+)
Synergistic
Waste (x)
Synergistic Waste
(Affecting stockholders)
(Affecting
Stockholders)
Systemic
Waste (xn)
Systemic Waste
Production:
 Under
 Over
 Untimely
Performance:
 Non
 Under
 Over
 Untimely
Owner
• Project Delivery System –
Contracts
Capitalnature
Fa cility
• Systemic
of the industry
Procurement
and
• Project
Breakdown
Production
s
• Litigation
(shiftSystem
of value)
• Devalued Market
• National Debt
Designers
Contractor
Change:




Scope
Conditions
Errors
External
©Linbeck/Jose Solis - Proprietary & Confidential
Trade Partners
Slide 9
25
Lean Principles
Lean Thinking seeks to eliminate waste in both schedule and budget,
so projects are delivered faster - and more cost-effectively.
Define Client’s Value
Actively understanding what is valuable to our clients in
terms of budget, function, aesthetics, standards, and time
Map Value Stream
Identifying the most effective sequence of activities
to deliver the value defined by the client
Achieve Value Flow
Doing work only when needed - when it triggers
downstream tasks that will advance the
overall process
Respond to Pull
The continuous application of the
four steps above
©Linbeck/Jose Solis - Proprietary & Confidential
Eliminating unnecessary
procedures to allow more work to
be scheduled and executed
Slide 10
Seek Perfection
Lean Operating System
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Slide 11
Quality Assurance
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Slide 12
First Lean Principle
Defining Value –
What is valuable to your customer?
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Slide 13
Cook Children’s Mission
Cook Children’s Health Care
System will improve the health
of every child in our region
through the prevention and
treatment of illness, disease
and injury
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 14
First Principle – Defining Value to CCMC
 Reliability - Capital Cost Budgeting
 Speed – Time to Market
 Uptime - Patient Care Areas
 Customer Satisfaction - Maximizing Positive Patient Outcomes
 Controlling Infection – Safe Environment for Healthcare
 Cost – Leveraging Market Knowledge, Community Reputation &
Fairness
 Quality - Focusing on Long Term Facility Management,
Operations & Maintenance at Lower Cost
 Community Service – Support CCMC community mission
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 15
Fee @ Risk to Meet Owner Goals
• Removes the perceived
conflict of interest in
determining the
Guaranteed Maximum
Cost (GMP) of the
project
• Prevents focusing on cost
only, since the Client also
has safety, quality,
schedule, and
functionality goals
• Decreases motivation to
argue over minor
changes, since there is no
economic interest in
Team members collaborate to develop goals and measurement systems to
increasing the contract
make up a “balanced scorecard” with which the outcomes of the project
are assessed.
amount
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 16
Second Principle – Map the Value Stream
How we create value by removing discrete waste
Production
Value
Stream
Performance
Change
©Linbeck/Jose Solis - Proprietary & Confidential
• Under production
• Over production
• Untimely
production
•
•
•
•
Non performance
Under performance
Over performance
Untimely
performance
• Scope changes
• Change in
conditions
• Errors
• External changes
Slide 17
Lean Principles
 The right process will produce the right results



Continuously experiment and improve the process
Define Value, Map Value Stream
Engages stakeholders
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 18
Value Stream of Capital Project Delivery
See Feb 08 Board
Package Recap
See April 08
Board Package
See Definition
VS for Projects
Updated based on
decisions in Feb 08
4/15/18
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 19
Linbeck Sponsored Insured Program (LSIP)
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 20
Project Scope Waste
Typical Bridge Work Structure
Owner
Architect /
Engineer
Builder
Subcontractor
Manage Patient
Dissatisfaction
Manage Operations
Disruption
Identify Bridge
Criteria
Closing ER entrance for
42 days
Manage
Inefficient Work
Design Bridge
Components
Bid Erection and
Enclosure
Quote
Award Trade
Contracts
Legend
Contractual Relationship
©Linbeck/Jose Solis - Proprietary & Confidential
Close Entrance to
Emergency Room
Fabricate Bridge
Steel
Close
Street
Erect
Bridge
Pieces 14
days
Open
One-Half
Street
Slide 21
Enclose
One-Half
Bridge
14 Days
Close OneHalf Street
Enclose
Last OneHalf
Bridge
14 Days
Open Street
and
Emergency
Entrance after
42 Days
Linbeck’s Lean Process Keeps ER Entrance Open
Owner
Identifies
Process
Expectations
(Value)
Minimize
Disruption
Of Bridge
Construction
Close
Emergency
Room Entrance
One-Half Day
Identify Bridge
Criteria
Design Temp
Supports and
Lifting
Requirements
Design Bridge
Components
Architect /
Engineer
Builder
Closing ER entrance for
half day
Provide
Constructability &
Manage Client
Expectations
Determine Design
Options to
Accommodate Less
Intrusive Bridge Plan
Bid Assembled
On Ground
Bridge Erection
Quote
Award Trade
Contracts
Fabricate
Steel
Subcontractor
Legend
Contractual Relationship
©Linbeck/Jose Solis - Proprietary & Confidential
Drill
Temp
Piers
7 Days
Erect
Bridge on
Ground 7
Days
Slide 22
Assemble
Enclosure
on Ground
14 Days
Close
Street
Erect
Bridge
One-Half
Day
Open Street and
Emergency after
One-Half Day
Third Principle – Achieving Flow
 Achieve flow by removing synergistic waste
creating reliability with organization that addresses
product needs
Flow
©Linbeck/Jose Solis - Proprietary & Confidential
Relationships
Slide 23
•
•
•
•
Owner
Designers
Contractor
Trade Partners
Integrated Project Team
Integrated Project Team
Utilizing TeamBuild®
Approach
CMR –
Linbeck
Architects
CCMC
Owner
Engineer
Specialty
Specialty
Consultant
Consultant
©Linbeck/Jose Solis - Proprietary & Confidential
I
N
T
E
G
R
A
T
I
O
N
Owner Direct
Contractor
Linbeck
Project
Manager
FF&E
Vendors
Slide 24
Organizational Alignment
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 25
Integrated Project Team
Owner
Core
Specialty
Contractors
I
N
T
E
G
R
A
T
I
O
N
Architect &
Engineer
Linbeck PM @ Risk
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 26
Implementation of BIM in the LOS
 Create the right “flow”
 Involve the right people at the right time
 Allocation of responsibility and authority
 Create clarity
 Map out the process and the value stream
“WHAT”
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 27
“HOW”
Lean BIM Tools
BIM Tools
Early
Procurement
BIM Tools
Early
Procurement
Fast
Fast
Communicating via Model
Communicating via Model
Qualifying Trades
Qualifying Trades
GMP at SD
GMP at SD
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 28
Fourth Principle - Responding to Pull
 Respond to pull by doing work at the last responsible
moment
 Use pull driven approach




Define what is needed
Create what is defined
Not more
Execute flawlessly
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 29
Using Tools – Pull Schedule
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 30
Responding to Pull
Pull Built-Up AHU’s - Design Through Construction
Below Grade Access
“Last Opportunity”
©Linbeck/Jose Solis - Proprietary & Confidential
Shipped in “Larger” Sections
“Shrink Wrapped”
Slide 31
“Stored” in Location in
Assembled Sections-Protected
Percent Plan Complete Chart – Seeking Perfection
PERCENT PLAN COMPLETE
Baylor College of Medicine
100%
90%
PPC
Percent Plan Complete
90%
77%
80%
70%
60%
83%
85% 86% 84% 85%
71% 73%
63%
53%
56% 56%
50%
40%
30%
20%
10%
0%
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 32
90% 88% 88% 90% 92%
Cumulative Root Causes
nd of Uns atis fie d Sche dule d Ite m s
Trend of Tre
Unsatisfied
Schedule Items
10
Number of Weekly Unsatisfied Items
9
8
7
Sched. Accuracy
Rework
6
Eqpt. Del.
Make Ready
5
Mat'l Del.
4
Outstanding Submittals
Outstanding RFI's
3
Manpower
2
1
0
6/17/02
6/10/02
6/3/02
5/27/02
Slide 33
5/20/02
©Linbeck/Jose Solis - Proprietary & Confidential
5/13/02
5/6/02
4/29/02
4/22/02
4/15/02
4/8/02
4/1/02
3/25/02
3/18/02
3/11/02
3/4/02
2/25/02
2/18/02
2/11/02
Date
Using Tools – Last Planner
When Reliability Increases
Reliability
90%
75%
Saves Time (10-20%)
Saves $ (3-10%)
50%
25%
Construction
Industry Norm
10%
start
completion
Time
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 34
Where Are We Going? – Remove Systemic Waste
With an ever-changing economy
Problem:
Solution:
©Linbeck/Jose Solis - Proprietary & Confidential
1900
2000
2010
Future
Informal
“favoritism”
Under-Bid
Litigation
Under Cut
Fees/Market
Value
Problem?
Design Bid
Build
Design
Build/CMAR
Slide 35
Lean/
Integrated
Contract
Solution?
Systemic Waste
Remove with IPD agreements/relationships
 Project Delivery System – Contracts
 Systemic nature of industry
 Project breakdown
 Litigation (shift of value)
 Overcome Devalued Market
 Overcome National debt
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 36
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 37
Waste Types: Discrete, Synergistic, Systemic
DiscreteWaste
Waste (+)
Discrete
Synergistic Waste
Synergistic
Waste (x)
(Affecting stockholders)
(Affecting Stockholders)
Systemic Waste
Systemic
Waste (xn)
Production:
 Under
 Over
 Untimely
Performance:
 Non
 Under
 Over
 Untimely
Owner
•
•
•
•
•
•
Designers
Contractor
Change:




Scope
Conditions
Errors
External
©Linbeck/Jose Solis - Proprietary & Confidential
Project Delivery System – Contracts
Systemic nature of the industry
Capital Fa cility
Project Breakdown
Procurement
Litigation
(shift ofand
value)
Production
System
s
Devalued Market
National Debt
Trade Partners
Slide 38
25
Integrated Project Delivery
When Reliability Increases
Reliability
90%
75%
Saves Time (10-20%)
Saves $ (3-10%)
50%
25%
Construction
Industry Norm
10%
start
completion
Time
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 39
Questions?
©Linbeck/Jose Solis - Proprietary & Confidential
Slide 40