BUSINESS EDUCATION COURSE 2016 COLLABORATION …...Collaboration Collaboration is where individuals...
Transcript of BUSINESS EDUCATION COURSE 2016 COLLABORATION …...Collaboration Collaboration is where individuals...
BUSINESS EDUCATION COURSE 2016COLLABORATIONSuccessful Project Delivery
David Mashburn, Director of Facility Services
DENVER INTERNATIONAL AIRPORT
February 23, 2016
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• Introduction of Guest Speakers:
• Gretchen Gagel, Continuum
• Susan Pratt, Lean Construction Institute Consultant
• Julie Wienberg, Program Director for the DEN Great Hall Project
• Changes in Project Delivery at DEN
• Hotel / Transit Center – CMaR
• Parking Structure at MOD 4E – Design/Build with Yellow Book
• Fire Station – Design/Build with Yellow Book
• Discussion of Progressive Design Build Benchmarking Trip
• LAX, SFO, & SEATAC
• Discussion of Spatial Collaboration on the HTC Project
AGENDA
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• Swinerton & Stresscon – Design is all about the process of producing a
product, more so than the documents.
MOD 4E – Design/Build, aka copy MOD 4W
4• PCL & Wong Strauch Design
Fire Station 35 – Design/Build, aka letting go
• RFP Program Design Design we did at DEN internally
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Benchmarking with other Airports on Progressive Design Build = CollaborationLessons from LAX – Aviation industry changes too fast for old processes
– Rebekah Gladson FAIA and DBIA spoke about Progressive Design/Build, mostly relating to their Mid-field Terminal. (Next slide shows key component: Decision Making Matrix)
– Mike Doucette spoke about Lessons learned from Tom Bradley International Terminal (TBIT) (Project CMAR – had significant collaboration issues)
– LAWA Progressive Design Build on their CUP facility. (Slide from Presentation)
Lessons from SFO – Exceptional Project Delivery means Structured Collaboration
Design there on Terminals 3, 2, & 1 and FAA Tower. In a word: Awesome!
SFO is working to become their own Authority, City moves too slow for aviation industry.
This is why they do Progressive Design/Build and they have City support, because they have completed $1.5Billion with no claims.
Their motto: Soft on People, Hard on Problems.
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Benchmarking with other Airports on Progressive Design Build = Collaboration
• LAX Decision Making Matrix for Progressive Design Build
DESIGN & CONSTRUCTION
Integrated & Collaborative Elements
Stakeholder Engagement Process
Structured Collaborative Partnering
Integrated Technology Systems
Lean Construction Tools Integrated Project Delivery
Qualification Based Selection
• SFO
Philosophy for
Exceptional
Project
Outcome
DESIGN & CONSTRUCTION
Design Builder
Bids out
Trade Package
Sets
Site Work Temporary Facilities
Site Equipment
Underground Utilities
Civil
Demolition
Foundation Piles
Excavation
Formwork
Reinforcement
Concrete
Superstructure Structural Steel
Metal Deck
Formwork
Reinforcement
Concrete
Building Systems Fire Alarm
Active Network
Passive Network
Security
Terminal Management
Core Trades (D/B) Electrical
HVAC
Plumbing
Fire Protection
Exterior Curtain Wall
Baggage Handling System
Conveyances Elevators
Escalators
Moving Walks
Dumb Waiters
Passenger Loading Bridges
Equipment (E/P) Light Fixtures
Electrical Equipment
HVAC Equipment
Window Washing Equipment
Trash Compactors
ArchitecturalDrywall
Ornamental Steel
Casework
Plaster
Glazing
Doors & Hardware
Fire Proofing
Terrazzo
Flooring
Ceilings
Insulation
Tile
Painting
Signage
Skylights
Sheetmetal
Caulking & Sealants
Expansion/Seismic Joints
Roofing
Trade Bid Packages
(D/B) Design Build Trade Package
Notes:
(E/P) Early Procurement Packages
DESIGN & CONSTRUCTION
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Integrate the
Collaboration
Collaboration is where individuals of
the project team regardless of discipline
shares information directly with another
individual of the project team working
toward a common set of project
outcomes.
Integration is where an individual of
the project team regardless of discipline
can share the collaborative information
in a way that the entire project team can
utilize the same information toward a
common set of project outcomes.
Collaboration & Integration
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Group Project Team Individuals by Common Objectives
DESIGN & CONSTRUCTION
The Stakeholder Engagement Process Team Organization
Stakeholder Engagement Teams
SEP 1.4Amenities
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.1Architecture
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP Team 1.2Art Enrichment
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.3Programming
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP LeadSEP 1.1
Architecture
SEP LeadSEP 1.2
Art Enrichment
SEP LeadSEP 1.4
Amenities
SEP LeadSEP 1.3
Programming
SEP 1.4Amenities
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.1Architecture
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP Team 1.2Art Enrichment
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.3Programming
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP LeadSEP 1.1
Architecture
SEP LeadSEP 1.2
Art Enrichment
SEP LeadSEP 1.4
Amenities
SEP LeadSEP 1.3
Programming
SEP 1.1Architecture
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.2Art Enrichment
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.3Programming
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP 1.4Amenities
SEP Owner
Stakeholders
Operators
Maintainers
End Users
Design Specialist
Builder Specialist
SEP LeadSEP 1.1
Architecture
SEP LeadSEP 1.2
Art Enrichment
SEP LeadSEP 1.3
Programming
SEP LeadSEP 1.4
Amenities
SEP LSEP
SET T
Space P
SEP Owe
Stakehold
Operators
Maintaine
End Users
Design Sp
Builder Sp
SEP Group LeaderSEP Group 1Design Vision
DESIGN & CONSTRUCTION
SEP Group LeaderSEP Group 1Design Vision
SEP Group LeaderSEP Group 2
Code Compliance
SEP Group LeaderSEP Group 3
Construction Planning
SEP Group LeaderSEP Group 4
Building Systems
SEP Manager
SEPSA
Speci
SEP 1.2
Art Enrichment
SEP 1.1
Architecture
SEP 1.3
Programming
SEP 1.4
Amenities
SEP 2.2
Structural System
SEP 2.1
Life Safety Systems
SEP 2.3
Sustainability
SEP 2.4
TCO
SEP 3.2
Site Logistics
SEP 3.1
Civil/Utilities
SEP 3.3
Roadways/Parking
SEP 3.4
Demolition
SEP 3.6
Airside Logistics
SEP 4.2
Doors/Hardware
SEP 4.1
Conveyances
SEP 4.3
Mechanical
SEP 4.4
Electrical
Stakeholder Engagement Integration
The Stakeholder Engagement Process Team Organization
SEP 2.5
ADA
SEP 1.5
Technologies
DESIGN & CONSTRUCTION
Airport Staff
Design
Coordinator
Project
Control
Construction
Manager
Document
Control
Project Management
Support Services
Office
Engineer
Safety
Engineer
Project Manager
Resident
Engineer
Field
Inspector
Project
Manager
Project Management
Support Services
Contract
Project Team Organization
Designer
Project Manager
Architectural
Design
Interior
Design
Structural
Engineering
Electrical
Engineering
Mechanical
Engineering
Civil
Engineering
Landscape
ArchitectureLife Safety
Builder
Project Manager
Project
EngineerSuperintendent
Office
EngineerScheduler
Safety
Manager
QA/QC
Manager
Cost
Estimator
Design
Manager
Design
Services
Contract
CM/GC
Services
Contract
Design Builder
Project Director
Design Build
Services Contract
Stakeholder
Engagement Teams
SEP Group 5Special Systems
SEP Group 6Airport Operations
SEP
Manager
SEP Group 2Code Compliance
SEP Group 1Design Vision
SEP Group 4Building Systems
SEP Group 3Construction Planning
SEP 1.1Architecture
SEP 1.2Art Enrichment
SEP 1.3Programming
SEP 2.1Life Safety
SEP 2.2Structural
SEP 2.3Sustainability
SEP 4.1Conveyances
SEP 4.2Doors/Hardware
SEP 3.1Civil/Utilities
SEP 3.2Site Logistics
SET 3.3Roadways
SEP 4.3Mechanical
*
Crane Foundation
Designers’ modeled underground.
They had collaborated with utility designer under separate contract
HTC Spatial CoordinationBIM Collaboration
*This is a view of Level 5 of the Contractor’s Model
Contractor’s objective: ‘Sign off’ all trades as a team, with the latest changes up to the
critical path moment. They utilized automated clash detection.
Then shop drawings were printed. Checked the old-fashioned, legal way.
HTC Spatial CoordinationBIM Collaboration
Contractor Model
*This is a view of Level 1.
Contractor’s objective: plan for future BHS system
BHS system going through change. Project moving fast. Plan to put in later. Space is
there with right of ways.
HTC Spatial CoordinationBIM Collaboration
Contractor Model
*
This is a view of Level 5 of the Contractor’s model.
Contractor’s secondary objective: They did hanger coordination meetings for every
floor. Given the complexity, timing, it was amazing to witness and feel the many change
orders avoided. ‘Aggressive Negotiations’ were in the spatial coordination room instead
of the site.
HTC Spatial CoordinationBIM Collaboration
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Who is Lean Project Consulting?
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Keep Budgets Low & Preserve Fees
Design to Budget & Preserve Scope
Shorten Schedules & Eliminate Overtime
Maintain Project Flow & Reduce Rework
MAXIMIZE VALUE & SATISFY STAKEHOLDERS
“Amateurs work until they get it right. Professionals work until they can’t get it wrong.”
Lean and Integrated Project Delivery
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
“Amateurs work until they get it right. Professionals work until they can’t get it wrong.”
Lean and Integrated Project Delivery
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
AEC Labor Productivity vs Other Non-Farm Industries
Source of graph: Census Bureau, BLS
• In 1964: If a building takes 1,000 hours to build…
• In 1998: the building should take 552 hours to build
(If productivity gains = to other industries)
• In 1998: Building actually takes 1,185 hours to build
Meanwhile….
• In the same 30 years, auto manufacturers reduced
the Concept to Production Cycle from 6 Years to 14
Months (Center for Integrated Facility Engineering – Stanford)
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Lean and Integrated Project Delivery
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
“Amateurs work until they get it right. Professionals work until they can’t get it wrong.”
Lean and Integrated Project Delivery
1. Plan
2. Design (Talent)
3. Deliver
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
When asked how he would spend his time if he was given an hour to solve a thorny problem, Einstein said he would “spend 55 minutes defining the problem and alternatives, and 5 minutes solving it.”
Lean and Integrated Project Delivery
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
When asked how he would spend his time if he was given an hour to solve a thorny problem, Einstein said he would “spend 55 minutes defining the problem and alternatives, and 5 minutes solving it.”
Lean and Integrated Project Delivery
Within the first 10% of Design….
70% of Project Costs, Scope, and Environmental Impacts are already determined
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Disintegrated Project Delivery
Stakeholders and Scope
Scope: 50% of planning problems are due to unclear definitions of scope and goals
● Project Objectives/Value Proposition
● Stakeholder Analysis
● Milestones through Pull Planning
● Technical Requirements through Cluster Groups
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Connections:
Handoffs: What do people need to do their work, and how is the request for that material/information triggered?
Methods:
HOW do people actually do the work?
Output:
What are you producing, and how much, for whom?
Happy customer (internal and external)
Pathway:
Who performs what steps in what sequence?
Susan Pratt [email protected]
Lean and Integrated Project Delivery
16th LCI Congress | San Francisco, CA | October 7-10, 2014
What is the Expected Output?
1. Define a file naming structure
2. Describe and diagram how models will be separated (by building, by floor, by zones, by areas, by disciplines)
3. Describe measurement system and coordinate system
4. Identify and agree on items such as BIM and CAD standards, content reference information, etc.
From: Penn State University “BIM Project Execution Planning Guide” Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Value Added Work
What the manual “says” we are doing
What we are actually doing
What we should be doing
Susan Pratt [email protected]
Process Flow-What is the Expected Outcome?
Steps in the Process What Problems arise at
each Step?
How often does this
Happen?
What is the Impact?
Where does the work go after it leaves you?
FLOW WASTE IMPACT
Value Added Work
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
The 8 Wastes of Lean
Waiting
Overproduction
Rework
Motion
Processing
Inventory
Intellect
Transportation
Standard Work
Standard Work
Standard Work
T I M E
PR
OC
ES
S IM
PR
OV
EM
EN
T
Susan Pratt [email protected]
The Hospital: Seven Service Families
●Patient access/intake services
●Unplanned/emergency services
●Procedural/invasive services
●Imaging/diagnostic services
●Clinical support services
●Operational support services
●Inpatient services
Value Stream Mapping
From: “The New Lean Healthcare Pocket Guide XL,” Hadfield/Holmes/Kozlowski/Speri
Value Stream: A series of
processes that connect
together and transform a
customer request into a
good or service that’s
delivered to the
customer, completing the
request-to-delivery cycle.
Susan Pratt [email protected]
Value Stream Mapping
The Hospital: Seven Service Families
●Patient access/intake services
●Unplanned/emergency services
●Procedural/invasive services
●Imaging/diagnostic services
●Clinical support services
●Operational support services
●Inpatient services
From: “Lean-Led Hospital Design” by Naida Grunden and Charles Hagood Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
What is the Expected Output?
Value Stream Mapping
Don’t just do what customers ask, help them understand what they want by revealing the consequences of their desires, and making them aware of alternatives they may not have considered .
“Amateurs work until they get it right. Professionals work until they can’t get it wrong.”
Lean and Integrated Project Delivery
1. Plan
2. Design (Talent)
3. Deliver
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Disintegrated Project Delivery
In the Beginning:
The Master Builder controls all design and construction
Now:
A fragmented industry creates adversarial relationships as each party optimizes his part at the expense of the whole
Susan Pratt [email protected]
16th LCI Congress | San Francisco, CA | October 7-10, 2014
“A bad system will beat a good person every time.” – W. Edwards Deming
Susan Pratt [email protected]
Disintegrated Project Delivery
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Design of the Mechanical System
● “Waterfall approach”
● Rules of Thumb
● “Black Box”
● Optimize each system, not the whole
● Energy modeling in Design Development
● Design and Construction unlinked
Susan Pratt [email protected]
Disintegrated Project Delivery
16th LCI Congress | San Francisco, CA | October 7-10, 2014
Lean and Integrated Project Delivery
“Most of the costs and much of the quality in a construction project are locked in long before production launch, and therefore the design process will be crucial not only to do things right, but also, more importantly, to do the right things.” - Stephen Emmitt
Susan Pratt [email protected] from: Lincoln H. Forbes, “Modern Construction: Lean Project Delivery and Integrated Practices”
16th LCI Congress | San Francisco, CA | October 7-10, 2014
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” - Aristotle
Manage Lean Teams –Facilitate collaboration, find innovative ways to design and build
Root Cause Analysis –Remove the roadblocks and maintain project flow
Continuous Improvement –Define metrics to measure success and improve productivity
Lean and Integrated Project Delivery
Susan Pratt [email protected]
Target Value Design
●All major trades participate in design
●Set Target Value below Allowable Cost
●Set-Based Design
●Rapid Prototyping
●Integrate whole systems, not parts
Target Value Design
Susan Pratt [email protected]
Target Value Design
●All major trades participate in design
●Set Target Value below Allowable Cost
●Set-Based Design
●Rapid Prototyping
●Integrate whole systems, not parts
Target Value Design
Susan Pratt [email protected]
Target Value Design
●All major trades participate in design
●Set Target Value below Allowable Cost
●Set-Based Design
●Rapid Prototyping
●Integrate whole systems, not parts
Target Value Design
Susan Pratt [email protected] from: Oscia Wilson, “Owner’s Guide to Starting Integrated Building Projects”
Target Value Design
Set Based Design
Mechanical & Plumbing (17%) $1,700,000Electrical (14%) $1,400,000Foundation/Structure (12%) $1,200,000Envelope including roof (20%) $2,000,000Hardscape, Landscape (10%) $1,000,000Framing & Drywall, Millwork (12%) $1,200,000Interior Finishes (flooring, fixtures, furniture) (10%)
$1,000,000
Contingency (5%) $500,000Total $10,000,000
Susan Pratt [email protected]
Gather information before design
●Study cultural and ecological patterns
●Understand water flows, topography, rainfall
rates, water sources and treatment facilities
●Understand climate, solar and wind capacity,
heating and cooling degree days, energy
sources, and typical energy consumption
●Select rating system and performance criteria
Target Value Design
Sustainability - Massing and Orientation
Susan Pratt [email protected]
● Rather than estimate based on a detailed design, design based on a detailed estimate.
● Rather than evaluate the constructability of a design, design for what is constructible.
● Rather than design alone and then come together for group reviews and decisions, work together to
define the issues and produce decisions, then design to those decisions.
● Rather than narrow choices to proceed with design, carry solution sets far into the design process.
Adopt a practice of approving completed work as you design.
● Rather than work alone in separate rooms, work in pairs or a larger group face-to-face.
● Make money move across organizational and contractual boundaries in search of the best project
level investments.
Target Value Design
TVD vs Traditional Design
Susan Pratt [email protected]
“Amateurs work until they get it right. Professionals work until they can’t get it wrong.”
Lean and Integrated Project Delivery
1. Plan
2. Design (Talent)
3. Deliver
Susan Pratt [email protected]
“A bad system will beat a good person every time.” – W. Edwards Deming
Susan Pratt [email protected]
Disintegrated Project Delivery
Last Planner System
Susan Pratt [email protected]
Last Planner System
CAN:
6-8 Week Look Ahead (Make Ready)
●Every week: drop into a look ahead window that
allows you to overcome major deficiencies in design
information or materials.
●Identify and remove constraints, break down tasks,
collaboratively design operations, ensure sequence
is correct.
●Resist psychological urge to press forward. Have
the discipline to take time to reflect and analyze and
take preventative action. Get better over time.
Susan Pratt [email protected]
Last Planner System
WILL: The Weekly Work Plan
Transfer activities from Week 2 of the Make Ready
Plan into the new WWP. Only make quality
assignments:
●Only allow tasks on the WWP that are SOUND-constraints
are removed and we have everything we need to do it well.
●Make sure work is done in the proper SEQUENCE-don’t do
now what will create a penalty later.
●SIZE tasks based on the capability of the people doing the
work. Work to develop that capability.
●Only include tasks that are well DEFINED: people know
what is to be done, when to do it, where it is to be done, and
what is needed in order to do it.
From: The Lean Construction Institute Susan Pratt [email protected]
Last Planner System
Susan Pratt [email protected]
Last Planner System
DID:
Percent Plan Complete
●Every week: determine the tasks complete for the
week. Only include the number of assignments
completed on the day stated. Divide by the total
number of assignments for that week.
●Calculate the percentage of tasks completed.
●Establish the list of reasons why tasks may not be
completed on time. Agree on definitions. Each week,
person who made the promise explains why work
was not completed.From: Dan Fauchier
Susan Pratt [email protected]
Susan Pratt, LEED AP, PMP
Lean Project Consulting
www.LeanProject.com
303.656.9532
Thank you!
Susan Pratt Sueliz_
Transforming the worldwide building and construction industry
through revolutionary innovation.
www.ContinuumAG.com
Transforming the worldwide building and construction industry
through revolutionary innovation.
www.ContinuumAG.com
Denver International Airport
Gretchen Gagel, President & COO, Continuum Advisory Group | 2.2.16
Owner/A/E/C Collaboration and
Integration for Success
Transforming the worldwide building and construction industry
through revolutionary innovation.
www.ContinuumAG.com
Transforming the worldwide building and construction industry
through revolutionary innovation.
www.ContinuumAG.com
We are a management consulting firm working exclusively with the stakeholders of the homebuilding and
construction industry to ensure that organizational and relational strategies are in place to achieve
success. Specifically, we help owners with how they plan, manage, buy and deliver capital construction
programs and services to optimize program delivery and the value received for capital spending.
About Continuum Advisory Group
► We treat our clients as partners and their businesses as our own, driving strategies that will transform their organizations and the overall industry.
► Transform the worldwide building and construction industry through revolutionary innovation.
Vision
Mission
► Our team values the long view: for our clients, our business, and our people.
Values
Optimized Capital Program Delivery
We believe that in the delivery of capital programs, four areas of program execution are critical to success:
► The development of a Plan that is
linked to the overall corporate
strategy and creates an
organization optimized to execute
the plan is critical.
► The Buying of outside services
must be strategic and focus on
generating the most value from
contractors.
► Management of internal resources
must be done to support the overall
strategic objective and provide the
tools, training and systems needed
for internal staff to be successful.
► Delivering the program requires
the integration of external and
internal resources to deliver on the
program objectives, while having
the measurements in place to
monitor and drive performance.
Gretchen Gagel www.ContinuumAG.com ► 3
► How is our industry changing?
► How would you describe “change” and its
impact on your ability to do your job?
Gretchen Gagel www.ContinuumAG.com ► 4
The Ever-Accelerating Speed of Change
New technology is
accepted and adopted at
ever-increasing rates
► THE TELEPHONE took 35 years to achieve 25% adoption
► MOBILE PHONES achieved 25% adoption in 13 years
► THE INTERNET achieved 25% adoption in a mere 7 years
Gretchen Gagel www.ContinuumAG.com ► 5
What Do “We” Need
DIA Representatives A/E/C Representatives
Gretchen Gagel www.ContinuumAG.com ► 6
PLAN: Program Planning is a Strategic Concern (1 of 2)
►SHAREHOLDER RETURN
– The primary focus of capital construction is getting the best product to
market and maximizing shareholder return
►“PROGRAM” VS. “PROJECT”
– Overall capital construction efforts must focus on how groups of projects
drive the company’s strategic plan
►SPEED TO MARKET
– Capital construction is on the critical path – it’s not secondary to the
company’s core business
Gretchen Gagel www.ContinuumAG.com ► 7
Capital construction and facilities maintenance
will be key to overall company success.
PLAN: Program Planning is a Strategic Concern (2 of 2)
►SUSTAINABILITY
– Life cycle cost and sustainability is a strategic imperative
►ASSET FLEXIBILITY
– The ability to adapt to unpredictable market changes is critical
►ADAPTABLE ORGANIZATIONS
– “Right-sizing” can only succeed if you increase flexibility to mix
external and internal resources
Gretchen Gagel www.ContinuumAG.com ► 8
“I am a devotee of Peter Drucker and his insight that ‘culture eats strategy for breakfast.’ You can make
progress on a strategy for change in an organization without addressing culture, but you simply cannot
sustain change without addressing the organization’s DNA – that is its culture.”
– Anne Pramaggiore, President and CEO, ComEd
TALENT: The Race to Find the Best and Brightest
Internal and External Resources Intensifies
►KEY QUESTIONS:
– Where is the best talent for this program?
– Is it on our team? Is it on a supplier team?
– What core skills must reside in-house? How do we collaborate
with our suppliers in a flexible way that allows us to react to
market changes and other environmental factors?
– How do we find the best, most talented suppliers to execute our
programs and projects?
Gretchen Gagel www.ContinuumAG.com ► 9
The need for adaptable, nimble organizations
is linked to the issue of talent.
TALENT: Sourcing Best-in-Class External Talent
is a Core Strategic Capability
Gretchen Gagel www.ContinuumAG.com ► 10
Collaborative
learning with
external suppliers to
drive performance
improvement and
innovation is critical
“If our suppliers aren’t bringing us new, imaginative ways to cut cost and time out of
our projects, they won’t be working for us in a year.” – anonymous respondent
DELIVER: Optimizing Program Execution & Performance
is the Primary Tactic to Achieve Strategic Success (1 of 2)
Gretchen Gagel www.ContinuumAG.com ► 11
Choosing the right people, the right processes, and the right
technology must be done for each program and project.
Blend them together effectively to achieve success.
DELIVER: Optimizing Program Execution & Performance
is the Primary Tactic to Achieve Strategic Success (2 of 2)
Gretchen Gagel www.ContinuumAG.com ► 12
Each program or project requires the right “recipe.”
Overcoming trust issues regarding sharing information across organizations for the betterment of the program
and project will be key
Blending well-defined processes across
organizations to create a set of processes
specific to the program or project
Not just good talentselection, procurement
and retention…equally as important are trust and
transparency, communication, and relationships.
PEOPLE PROCESS
TECHNOLOGY
► 13
Plan Phase – 1
Gretchen Gagel
► Multiple departments are
responsible for administrative
activities and planning their
use of outside resources.
► Design review involves a
large number of departments
and can create a bottleneck
in the process.
► Support functions receive
requests from multiple
functions/individuals with
limited traffic control or
coordination of deadlines.
Plan Phase – 2
Gretchen Gagel ► 14
► Need to evaluate if both 50%
& 90% review are needed
and if all departments
involved add value.
► Unclear how the oversight,
review and approval activity
relates to the 90% review
and if both steps are needed.
► Limited planning around
inspection resources as
projects approach
bid/release for construction.
Execute Phase – 1
Gretchen Gagel ► 15
►Evaluate approach to bid
document review and the
opportunity to standardize
approach for similar work.
►Evaluate need for bid show
and various departments to
participate – establish criteria
for when needed and not
needed.
Execute Phase – 2
Gretchen Gagel ► 16
►Project progress meeting
approach is undefined and
lacks consistency.
►The process for field data to
flow into monthly budget
projections is unclear and
appears to lack central
responsibility.
►Responsibility for
coordination of activities
related to projects is
scattered.
SOURCESFACTORS
Cost
Schedule
Safety
Quality
Peers
Consultants
Industry Organizations:
CII ◦ CMAA ◦ CURT
EVALUATE: Performance Benchmarking
Gretchen Gagel www.ContinuumAG.com ► 17
Successful organizations aggressively seek out
benchmarking information on a variety of variables.
“We are continually searching out the most effective benchmark information we can find
in our industry. It helps us understand how we stack up against our peers,
and how to improve the cost effectiveness of our efforts.” – Michael Mayra, General Motors
-20%
-15%
-10%
-5%
0%
5%
10%
15%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Capital Underspend Percentage By Year
Gretchen Gagel www.ContinuumAG.com ► 18
$4.6*
* Under/overspend dollars in millions
$12.7*
$1.8*
$13.4*
$14.1*
$4.0*
$18.1*
$4.5*
$0.4*
$18.5* $27.0*
► 11 year total underspend – $84.3 million
A mid-year cut in
the capital budget in
response to the
financial crisis led to
this overspend
event
-18%
-14%
-4%
-4%
-3%
-3%
-2%
-1%
0%
3%
4%
6%
-20% -15% -10% -5% 0% 5% 10%
Integrys
Client Company
Puget Energy
CMS Energy
AGL Resources
UGI Utilities
Citizens Energy
TECO Energy
Atmos Energy
BGE
National Fuel
PECO
2014 Difference in Capital
Spend Forecast to Actual
2014 Capital Under/Over Spend –
Comparison – Based on Public Reporting
CompanyDollars
(Underspent)/Overspent
Integrys $(187)
Client Company $(27)
Puget Energy $(23)
CMS Energy $(73)
AGL Resources $(21)
UGI Utilities $(15)
Citizens Energy $(14)
TECO Energy $(6)
Atmos Energy $-
BGE $20
National Fuel $35
PECO $36
Gretchen Gagel www.ContinuumAG.com ► 19
Under Over
CapScore Assessment
Capital Program Delivery www.ContinuumAG.com ► 20
► Continuum Advisory Group’s CapScore Assessment is a proprietary tool designed to establish the
quality and effectiveness of an owner’s capital spending. We conduct a review of 4 key areas containing
a total of 32 processes and procedures.
CapScore
Assessment
scoring is structured
relative to industry
standards,
benchmarks, and
Continuum’s
experience.
Buy: Strategic Sourcing (Services)
Category Description Score – Rec. to Improve
Base Program
Characteristics
The best performing firms tend to demonstrate
greater integration and a higher level of
relationship with their third party service
providers
6 – Build more collaborative relationships with
key contractors throughout the project life
cycle. Involve service providers in
improvement efforts.
Owner Relationship
ApproachFocused on a team approach and alliance use 5
Owner Problem
Solving Approach
The approach is focused on identifying and
implementing the best solution.
4 – Develop a team based approach to
resolve challenges and drive improvement.
Owner Team
Focus/Result Approach
Utility view of who is on the "team“ is broad
and inclusive; a formal process exists with
regular update meetings/sessions.
4
Gretchen Gagel www.ContinuumAG.com ► 21
Collaboration Versus Integration
►What is the difference between collaboration and
integration?
►Does “low initial price” equal “low total delivered cost”?
►How do we make decisions that are in the best interest of
all parties involved?
►What role does trust play in the “game”?
►What are the pros and cons of collaboration? Integration?
Gretchen Gagel www.ContinuumAG.com ► 22
Construction Industry Institute (CII)
► Construction Industry Institute (CII) – research on partnering and
collaboration
► Implications For The Design/Construction Process, by Robert Albanese,
February 1993, A report to The Construction Industry Institute, The
University of Texas at Austin, Under the Guidance of the Project Team
Building Task Force from Texas A&M University, College Station, Texas
Gretchen Gagel www.ContinuumAG.com ► 23
High Trust / Low Cost Low Trust / High Cost
Number of Projects = 104 Number of Projects = 51
CostIncrease
3%
No Impact30%
Cost Decrease
67%
CostIncrease
45%No Impact
39%
Cost Decrease
16%
Gretchen Gagel www.ContinuumAG.com ► 24
Cost Impact Related to Value Engineering
High Trust / Low Cost Low Trust / High Cost
Number of Projects = 103 Number of Projects = 22
CostIncrease
4%
No Impact14%
Cost Decrease
82%
Cost Increase50%
No Impact18%
Cost Decrease
32%
Gretchen Gagel www.ContinuumAG.com ► 25
Impact Related to Constructability
High Trust / Low Cost Low Trust / High Cost
Number of Projects = 64 Number of Projects = 50
CostIncrease
6%
No Impact58%
Cost Decrease
36%Cost
Increase65%
No Impact29%
Cost Decrease
6%
Gretchen Gagel www.ContinuumAG.com ► 26
Cost Impact Related to Dispute Resolution
XYZ Program
Gretchen Gagel www.ContinuumAG.com ► 27
TEAM GOAL
A world class partnership built on trust, integrity and open communication, using industry leading
design, construction and communication tools to drive innovation and reduce waste in support of a
safe and flawless launch of XYZ.
TEAM CULTURE
► SAFETY IS EVERYONE’S RESPONSIBILITY – IT’S PERSONAL
► ONE TEAM = ONE GOAL – DECISIONS BASED ON PROGRAM SUCCESS
► ONLY SEEK “WIN/WIN” SOLUTIONS
► TIMELY, TRANSPARENT AND FULL DISCLOSURE COMMUNICATION
► PRACTICE LEAN AND CHALLENGE THE STATUS QUO TO DRIVE INNOVATION AND VALUE
► PRIDE IN OUR TEAM ACCOMPLISHMENTS
TEAM NORMS
Our XYZ Program Team behavior principles will require each of us to adhere to the following norms:
Work safe at all times
Stop unsafe acts without repercussions
Leave personal agenda outside
Decisions are made for good of program, not
for company or individual
Be honest
Be respectful
Be responsive
Act in an empowered manner
Remain open to different ways of doing things
Admit mistakes – recover and move forward
If you disagree, speak up
Listen – don’t Interrupt
Collaborate and cooperate
Always focus on driving out waste
Work smart
Speak as one voice
Practice email etiquette
Look out for each other – have each other’s backs
XYZ Program Conditions of Satisfaction
1. Every person felt personal responsibility for a safe work environment
2. Met all Production Launch Dates with zero unplanned production interruptions
3. Experienced minimal team conflicts requiring Steering Committee intervention
4. Effectively utilized team resources through clear direction and empowerment
5. Mitigated cost and schedule impacts of all changes
6. All team members achieve their project financial expectations – fair profit and budget compliance
7. Develop a partnership-based project delivery Business Model with transformed processes
8. Implement a minimum of three Lean tools
9. Institutionalize defined Team Culture and Norms validated through regular surveys
10. Limit re-work to less than 0.2% of construction value
► 28www.ContinuumAG.comGretchen Gagel
Case Study Results
Gretchen Gagel www.ContinuumAG.com ► 29
Integration Enables Lean Practices
► When we integrate, we…
– Break down the barriers to lean practices
– Facilitate co-learning and innovation
– Create an environment of continuous
improvement
– Eliminate the phrase “we can’t do that”
– Foster a culture of new thinking
Gretchen Gagel www.ContinuumAG.com ► 30
Why Lean Construction?
Example Client Lean Program Vision
Gretchen Gagel www.ContinuumAG.com ► 32
LEAN VISION
Create a culture within the XYZ Program that emphasizes a ‘Lean mindset’ at every level and
an environment where the day-to-day actions of each member are driven by Lean practices.
LEAN GOALS
► GET 100% BUY-IN AT EACH SITE
► IMPLEMENT AT LEAST 3 LEAN PRACTICES AT EACH SITE
► ELIMINATE NON-VALUE ADDED WORK
► ACHIEVE GOOD PRODUCTION FLOW IN THE FIELD
► FOCUS ON THE PROPER ALLOCATION OF RESOURCES
► ACHIEVE OPTIMAL EXECUTION IN THE FIELD
LEAN OBJECTIVES
The following objectives will allow the Lean Team and the XYZ Program to accomplish its Lean goals:
Measure the ongoing effectiveness of Lean practices by
tracking two categories: Re-work and Schedule
Share success stories and transfer opportunities between
sites
Identify which Lean practices/tools should be mandatory at
each site, then identify new Lean practices/tools that would
be beneficial to the specific site
Create a Last Planner team
The Successful Organization is Nimble,
Adabtable and Constantly Evaluating
Gretchen Gagel www.ContinuumAG.com ► 33
PLAN
BUY
DELIVER
MANAGE
The Only Constant is CHANGE
► Successful organizations proactively scan the environment searching for
drivers of change and effectively create strategies and tactics to address
those changes.
– Be nimble and innovative
– Learn how to learn
– Constantly reevaluate and improve
Gretchen Gagel www.ContinuumAG.com ► 34
“We saw it coming, and we decided to get ahead of the curve.” - Cheryl Campbell, Vice President of Gas Operations, Xcel Energy
Thank you
Gretchen Gagel www.ContinuumAG.com ► 35
GRETCHEN GAGEL
PRESIDENT & COO
Denver, Colorado
303.564.4164
www.ContinuumAG.com