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Linbeck Lean Project Delivery

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

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Linbeck Lean Project Delivery

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  1. Linbeck Lean Project Delivery

  2. 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

  3. 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.”

  4. Why? • Why did Linbeck start doing this more than 10 years ago? Competitive Reasons • Why should others do it? To survive!

  5. 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?

  6. Yes or No? • Not according to Government Statistics

  7. Industry Reliability Model 90% Lost Opportunity Industry Wastes 40-50% 75% Reliability 50% Construction Industry Norm 25% 10% start completion Time

  8. 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?

  9. Value/Waste Relation VARIABILITY WASTE VALUE PREDICTABILITY

  10. Synergistic Waste Discrete Waste Sy stemic Waste (Affecting stockholders) Production: · Under · Over · Untimely Performance : Owner · Non · Under · Over Designers Capital Fa c ility · Untimely Procurement and Production System s Contractor Change : · Scope Trade Partners · Conditions · Errors · External Waste Types: Discrete, Synergistic, Systemic Synergistic Waste (x) (Affecting Stockholders) Discrete Waste (+) Systemic Waste (xn) • Project Delivery System – Contracts • Systemic nature of the industry • Project Breakdown • Litigation (shift of value) • Devalued Market • National Debt 25

  11. Lean Principles Lean Thinking seeks to eliminate waste in both schedule and budget, so projects are delivered faster - and more cost-effectively. Actively understanding what is valuable to our clients in terms of budget, function, aesthetics, standards, and time Define Client’s Value Identifying the most effective sequence of activities to deliver the value defined by the client Map Value Stream Eliminating unnecessary procedures to allow more work to be scheduled and executed 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 Seek Perfection

  12. Lean Operating System

  13. Quality Assurance

  14. First Lean Principle Defining Value – What is valuable to your customer?

  15. 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

  16. 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

  17. 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 increasing the contract amount

  18. Second Principle – Map the Value Stream How we create value by removing discrete waste Value Stream

  19. Lean Principles • The right process will produce the right results • Continuously experiment and improve the process • Define Value, Map Value Stream • Engages stakeholders

  20. 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

  21. Linbeck Sponsored Insured Program (LSIP)

  22. Bid Erection and Enclosure Legend Project Scope WasteTypical Bridge Work Structure Closing ER entrance for 42 days Manage Inefficient Work Manage Patient Dissatisfaction Manage Operations Disruption Identify Bridge Criteria Owner Architect / Engineer Design Bridge Components Award Trade Contracts Builder Close Entrance to Fabricate Bridge Steel Subcontractor Emergency Room Quote Open Street and Emergency Entrance after 42 Days Enclose Last One-Half Bridge 14 Days Erect Bridge Pieces 14 days Enclose One-Half Bridge 14 Days Close One-Half Street Open One-Half Street Contractual Relationship Close Street

  23. Identifies Process Expectations (Value) Minimize Disruption Of Bridge Construction Close Emergency Room Entrance One-Half Day Identify Bridge Criteria Owner Design Temp Supports and Lifting Requirements Architect / Design Bridge Components Engineer Determine Design Options to Accommodate Less Intrusive Bridge Plan Provide Constructability & Manage Client Expectations Bid Assembled On Ground Bridge Erection Builder Award Trade Contracts Fabricate Quote Steel Subcontractor Erect Bridge on Ground 7 Days Open Street and Emergency after One-Half Day Assemble Enclosure on Ground 14 Days Drill Temp Piers 7 Days Erect Close Bridge Street One-Half Day Legend Contractual Relationship Linbeck’s Lean Process Keeps ER Entrance Open Closing ER entrance for half day

  24. Third Principle – Achieving Flow • Achieve flow by removing synergistic waste creating reliability with organization that addresses product needs Flow

  25. Integrated Project Team Integrated Project Team Utilizing TeamBuild® Approach CMR – Linbeck Architects INTEGRATION CCMC Owner Owner Direct Contractor Engineer Linbeck Project Manager Specialty Consultant FF&E Vendors Specialty Consultant

  26. Organizational Alignment

  27. Integrated Project Team • Owner • Architect & Engineer • Core Specialty Contractors INTEGRATION • Linbeck PM @ Risk

  28. 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” “HOW”

  29. Lean BIM Tools BIM Tools Early Procurement BIM Tools Early Procurement Fast Fast Communicating via Model Qualifying Trades GMP at SD Communicating via Model Qualifying Trades GMP at SD

  30. 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

  31. Using Tools – Pull Schedule

  32. Responding to Pull Pull Built-Up AHU’s - Design Through Construction Shipped in “Larger” Sections “Shrink Wrapped” “Stored” in Location in Assembled Sections-Protected Below Grade Access “Last Opportunity”

  33. Percent Plan Complete Chart – Seeking Perfection Baylor College of Medicine

  34. Cumulative Root Causes Trend of Unsatisfied Schedule Items

  35. Using Tools – Last Planner When Reliability Increases 90% LOS 75% Saves Time (10-20%) Saves $ (3-10%) Reliability 50% 25% Construction Industry Norm 10% start completion Time

  36. Where Are We Going? – Remove Systemic Waste With an ever-changing economy Problem: Solution:

  37. Systemic Waste • Project Delivery System – Contracts • Systemic nature of industry • Project breakdown • Litigation (shift of value) • Overcome Devalued Market • Overcome National debt Remove with IPD agreements/relationships

  38. Synergistic Waste Discrete Waste Sy stemic Waste (Affecting stockholders) Production: · Under · Over · Untimely Performance : Owner · Non · Under · Over Designers Capital Fa c ility · Untimely Procurement and Production System s Contractor Change : · Scope Trade Partners · Conditions · Errors · External Waste Types: Discrete, Synergistic, Systemic Synergistic Waste (x) (Affecting Stockholders) Discrete Waste (+) Systemic Waste (xn) • Project Delivery System – Contracts • Systemic nature of the industry • Project Breakdown • Litigation (shift of value) • Devalued Market • National Debt 25

  39. Integrated Project Delivery When Reliability Increases IPD 90% LOS 75% Saves Time (10-20%) Saves $ (3-10%) Reliability 50% 25% Construction Industry Norm 10% start completion Time

  40. Questions?

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