Post on 21-Jan-2016
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
By Mai NguyenLondon Bridge Associates Ltd
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
1. History of Lean
2. Principles of Lean
3. What is Lean Construction?
4. Waste in Construction
5. Lean Maturity Model
6. Case Study: Highway Agency
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Here is Edward Bear coming down stairs now, bump, bump, bump, on the back of his head, behind Christopher Robin. It is, as far as he knows, the only way of coming downstairs, but
sometimes he feels that there really is another way, if only he could stop
bumping for a moment and think of it.
A.A. Milne
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
(Ref: Ian Graham – Prism Consultancy)
1960 - 1980TQC
TQM
1990’s
ISO 9000
Best Value
EFQM
BPR
BalancedScorecard
SixSigma
LeanThinking
1980’s
Mid1990’s
Mid 2000’s
2000’s
CBP
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Toyota Motor Company – Birthplace of
Lean
Toyota Production System – Lean
Production “customers to stand in the frontline of the
marketplace and “pull” the goods they need, in the amount and at the time they need them.” (Taiichi Ohno - Toyota’s chief production engineer)
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
“it uses less of everything compared with mass production – half the human effort in the factory, half the manufacturing space,
half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces
a greater and ever growing variety of products”.
(Womack, et. al (1990) - “The Machine That Change the World”)
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Define value from the perspective of the end customer
• Provide what the customers want, when they want it – understand demand
• Work on the processes that lead to results – rather than the results themselves
• Identify the entire Value Stream and eliminate waste
• Make the remaining value steps flow
• Pursue perfection
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
PEOPLE PROCESS
MINIMISING WASTE
CUSTOMERVALUE
“You can adopt as many Lean Techniques as you want, but you need to work in a Lean Environment”.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• 1990: Term “lean” was coined• 1992: First research “Application of the
new production philosophy to construction” by Lauri Koskela
• 1993: First practical application “Ballard’s Last Planner”
• 1993: International Group of Lean Construction founded (http://cic.vtt.fi/lean/)
• 1997: Lean Construction Institute (LCI-US http://www.leanconstruction.org)
• 2005: Lean Construction Institute (LCI-UK http://www.leanconstruction.org/uk/)
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Lean Construction is the adaptation of Lean Thinking
into Construction. It is a strategy that is customer
focused and people centric.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Waste elimination,• Value creation, • Continuous improvement, • Innovation, • People development, • Collaborative working, • building long term relationships for world
class performance.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Lean construction is not about
trimming everything to the bone
and squeezing more out of what is
left.
It is about working smarter, not
harder.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Cost reduction
VisibleCosts
HiddenCosts
Cost saving(short term)
Examples:StaffingTransportTrainingIT renewalsetc
Examples:WastesMoraleReputationGoodwilletc
VisibleCosts
HiddenCosts
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Hidden Costs
More Cost saving(long term)
Examples:StaffingTransportTrainingIT renewalsetc
Examples:WastesMoraleReputationGoodwill
Wastes
MoraleReputationGoodwill
Make Waste become visible
VisibleCosts
Hidden Costs
VisibleCosts
VisibleCosts
Hidden Costs
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
15
Waste:
All unnecessary work
ELIMINATE !
Value Adding:
Any work that changes the nature, shape or
characteristics of the product, in line with
customer requirements(Maximise)
Non Value Adding:
Any work carried out,which is necessary under
current conditions but does not increase product value
((Minimise)
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN16
Waste!
Idle Time Defects/Rework
Worker Motion
Inventory
Over-production
Over-processing
Transportation
Skills Misuse
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN17
To raise the ratio of Value Added operations to Non-value Added and Waste
Working Time
Minimise
More resources available for other activities
WASTE NVA VA
Eliminate
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
•Waste is not defined•Reacting to large examples•Leads to muddled efforts•Reactive Improvement
•Waste is visible•Identifying many small opportunities•Leads to large overall change•Continuous improvement
A shift in
mindset
Non-lean organisationLean organisation
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Discussion
• Both focus on providing value for the customer
• GCM does not necessarily have to use less of everything to create value
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Beginning Lean
INITIAL1
World-class Status
Lean at all disciplines
Lean Becoming
Visible
INITIALLevel 1
IMPLICITLevel 2
EXPLICITLevel 3
MANAGEDLevel 4
OPTIMIZINGLevel 5
Lean Maturity Model (Mai Nguyen, 2004)
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• A Culture shift is needed to make it work
• The people in the processes have to be
allowed to work on, propose and implement
improvements
• It is not easy to turn waste reduction into
money saved
• Can seem like a threat to peoples’ jobs
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Executive Agency of Department for Transport.• 3600 staff across 8 offices, 8 traffic control centres and 29 outstations across England.• Operate, maintain and improve 7000 km Strategic Motorway and Trunk Road Network in England.(£100bn asset)• Network carries 4 million vehs/day• Accounts for 3% of England’s road network but carries 1/3 of all traffic & 2/3rds LGVs
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• The Highways Agency is spending £2bn per annum operating, maintaining, renewing and enhancing the Strategic Road Network• 90% spend is with suppliers.• Of that 80% spend is with Tiers 2 & 3 suppliers (sub contract)• Important to achieve “better for less” and reduce waste.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Squeezing time and cost out of HA’s processes while delivering improved value to
the customers
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Established in 2009• “to lead, support and enable continuous performance improvement across HA and the HA supply chain.”• “to reduce the cost of delivering HA projects and maintenance while at the same time improving the quality of the product delivered and improving delivery performance”.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Highways Agency Lean Maturity Assessment Toolkit
Allows HA to measure movement toward a continuous improvement culture
The HA Lean maturity toolkit has two purposes: one for self assessment and one for structured audit by the Highways Agency.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
The Assessment toolkit covers: Levels 0-4 Strategic use of Lean Lean leadership Understanding customer value Process focus Standard work Process control Planning, design, development & construction Maintenance of equipment, quality etc Supporting infrastructure
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Self assessment survey sent to 21 key suppliers in September 2010.• 10 areas scored on scale 0 to 4.• No risk response.• No attributable scores – each company received feedback individually.• Expectation is that it will take industry inorder 10 years to get to levels 3 or 4.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Average of all responses suggests that the supply chain considers itself at a 1.7/4.0 maturity level
• Averages of all responses: Consultants 1.9 Tier one contractors 1.7 MACs 1.7 Tier two suppliers 1.6 Materials suppliers 1.5
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
1. Lean Visual Management: is about communication and enabling teams to deliver performance improvement over time.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Each Project was tracked using magnetic cards
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Programme Visual Management Board 1800mm x 2400mm
•
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
2. Collaborative Planning System: is about enabling teams to deliver the same amount of work but with less resource.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
3. Continuous Improvement Activity
Collaborative Planning System
Lean Visual Management
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Collaborative re-programming to bring a delayed project back on track
Weekly/Monthly Plan and collaboratively produced programme
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
•97% of all programmed schemes start as per programme date, previous figure was 56%•Recorded £30m benefits realised (since April 09)•20% was saved in design time, this has resulted in savings of £ 465,770 in Area 12 (Pilot programme)•Established a Lean community in supply chain•HALMAT developed as part of supplier selection
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Guides on Collaborative Planning and Lean Visual management for supply chain
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
• Toyota, Nissan and Honda auto companies
in the UK had reduced their product
development time from 40 to 15 months.
Time from placing an order on the factory to
a customer also decreased from 120 days to
15 days.
• In Grocery retailing, Tesco stores have
reduced the capital cost of their stores by
40% in five years.
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
•Bell Common Tunnel Refurbishment has reduced
the duration of traffic management from 390 to 240
days, overall 2 weeks saved on programme, below
the target cost and was completed with minimal
disruption to the 85 million live vehicles
•VSU Project, Reduced turnaround times, opened on
time for the Olympic, reduced plant and labour
costs, very limited re-work and non-conformances,
using BIM resulted in improved excavation
sequence - quicker & safer
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN
Warwick MSc - Construction Management Module 2015BY MAI NGUYEN