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Transcript of Lean Construction 2 Wingrove
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Lean Improvement in the
Highways Agency
Andrew Wingrove
Technical manager Lean Division
Licensed by the Highways Agency, under the Open Government Licence v1.0
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Purpose
To explain the Agencys Lean journey, what we have learned and
what our challenges are.
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Executive Agency of Department for Transport.
3800 staff across 8 offices, 8 traffic control centresand 29 outstations across England.
Operate, maintain and improve 7000 km Strategic
Motorway and Trunk Road Network in England.
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In current climate of austerity,
its even more important wereduce costs while improving
outcomes
!
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Lean at the Highways Agency
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To date lean deployment has focussed on the Supply chain...
The Agency Executive Board have fully been supportive by
investing resource and providing leadership
120 Lean Practitioners have been trained
Joint efficiencies of c.70m have been shared with the
Supply Chain since the programme commenced in 2009
A benefits to cost ratio better than 15-20 to 1 is routinely
achieved
The response from the Supply chain has been excellent
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Highways Agencys Strategy for Lean
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To enable the delivery of increasing value for our
customers using Lean
Co
llaborative
Planning
VisualManagement
ProblemS
olving
Benef
itsRealisation
KnowledgeTransfer
Objective
PEOPLE
Lean Maturity Assessment
Features
The House of Lean
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Collaborative Planning System
The Collaborative Planning System
is about enabling teams to work
together to improve flow and
deliver what is promised.
Collaborative
Mapping
Process
Improvement
Production
Control
To enable the delivery of increasing value for our
customers usingLean
Collaborative
Planning
VisualManagement
ProblemS
olving
BenefitsRealisation
KnowledgeTransfer
Objective
PEOPLE
Lean Maturity Assessment
Features
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Visual Management cells allow teams to easily track progress
against objectives and mitigate issues early on
Used at many site offices on HA Road schemes
Used in some HA offices, with plans to roll out more
Visual Management
To enable the delivery of increasing value for our
customers usingLean
Collaborative
Planning
VisualManagement
ProblemS
olving
BenefitsRealisation
KnowledgeTransfer
Objective
PEOPLE
Lean Maturity Assessment
Features
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Lean Sigma Projects (Problem Solving):
The DMAICT Improvement Process
Define Define the projectforming a team with agreed, clear goals and effective
sponsorship
Measure Measuring the Processgathering data on current performance
Identify and remove waste through lean techniques
Analyse Analysis of the Processidentifying and quantifying root causes of current
performance
Improve Improving the Processimplementing performance improvements
Control Controlling the Processachieving predicted benefits and project closure
Transfer Sustain performance, maximise the benefits of the learning gained during
the project and sign off
CONTROLIMPROVEANALYSEMEASUREDEFINEBUSINESS
OPPORTUNITIESTRANSFER
To enable the delivery of increasing value for our
customers usingLean
Collaborative
Planning
VisualManagement
ProblemS
olving
BenefitsRealisation
KnowledgeTransfer
Objective
PEOPLE
Lean Maturity Assessment
Features
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Demonstrates that Lean is worth doing to wider HA community
Creates business case for continuing investing resources in Lean deploymentHelps to identify which projects should be prioritised
Understanding gains gives energy to knowledge transfer activities
Benefits Realisation
Why?
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Every Lean Project undertaken produces a Knowledge
Transfer Pack.
Sharing Knowledge
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Highways Agency Lean
Maturity Assessment Toolkit
Allows HA to measure
movement toward a continuous
improvement culture in Supply
Chain
Measuring Lean Maturity
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Guides available on
Collaborative Planning
Lean Visual Management Design, Construction
and Maintenance fields
Benefits Realisation
Joint Training Programmes with
our Supply Chain
Secondments from the Supply
Chain
People and Skills
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Highways Agency Development
Route Map
Lean
Foundation
3 days1 module
Understand concepts and
language of lean
Deliver simple projects
with initial support
Understand leanphilosophy
Start to challenge waste
Receive attainment
certificate on passing test
at end of module
Lean
Practitioner
6 days2 modules
Understand concepts andlanguage of lean
Able to use a range of
common lean tools
Understand the DMAICT
methodology, Collaborative
Planning and Visual
Management techniques
Able to lead Lean Projects
Apply learning on ownproject during the training
Receive attendance
certificate after module 2
Receive certificate of
competence on completion
of project
A multiple stage build
approach to meet individual
development needs.
Understand concepts and
language of Lean Sigma
Able to use a range of
common Lean Sigma tools
including data analysis
methodologies.
Able to lead more complex
Lean Sigma Projects
Able to train to Lean
Practitioner level
Apply learning on
delegates own HA project
during the training Green Belt accreditation
by Black Belt following
pass of examination,
completion of Green Belt
project production of
Knowledge Transfer Pack
and review.
4days1 module
Lean SigmaGreen Belt
4
days 1 module
Understand concepts and
language of Lean Sigma
Able to use the full range
of Lean Sigma tools
including data analysis.
Able to lead complex Lean
and Six Sigma Projects
Have the foundations totrain to Green Belt after
Train the Trainer
development
Black Belt accreditation
by Master Black Belt
following pass of
examination, completion
of Black Belt project
production of Knowledge
Transfer Pack and review
with Master Black Belt
Lean Sigma
Black Belt
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Key Issues & Risks
Expectations too high too soon
Resources needed to help people to help themselvesmost areas of HA
are under resource pressure and may be reluctant to invest
Visibility of commitment from Agency leadership needed to be successful
Conflict with other initiativesstaff might not engage
Resistance arease.g. trade unions
Branding (Lean) could create issues
Some people make the assumption that it is about getting rid of staff
and this is definitely NOT the case
People might think it is a club for the chosen fewthis is definitely NOT
the case, all must engage for success
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Golden Rules for Lean
Source: Alan Cook HA Chairman
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Become self-sufficient in Lean
Use Lean as a staff engagement tool not just for eliminating waste
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What we have learned?
Provide support during the learning process.
Dont waste time and energy on the doubters!
Learn today and use tomorrow!
Build a community to generate peer pressure.
Secondee process works and gives great benefits.
Start with people engagement i.e. using Visual
Management and Collaborative planning ( keep it simpleto start)
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What we have learned?
Make it contractual but provide incentives!
Introduce Lean Key Performance measures
Encourage supplier organisations to see the benefit
Demonstrate the methodology get a quick win
Invest in your supply chain to develop capability
Transfer the knowledge
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HA PROCUREMENT STRATEGY
Collaborative Frameworks
Category Management
Asset Support Contracts
Project Bank Accounts
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Where it fits in?
TIER 1
TIER 2
TIER 3
TIER 4
TIER 5
Collaboration TIER 1 TIER 1Collaboration
TIER 2 TIER 2
CATEGORY MANAGEMENT INTEGRATION
PROJECT A
MPPROJECT B
MP
PROJECT C
Maintenance
TIER 3
TIER 4
TIER 5
TIER 3
TIER 4
TIER 5
Commercial Relationship Tier 1 to Extended Supply Chain Unchanged
80%
20%
Verti
calIntegrationinProjec
ts
Spend
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Category Management Contract Relationship Interfaces
Highways Agency/ Local Highway AuthorityEnabled
Framework
MAC/ASCFramework
(ASF)
Major
ProjectsSpot Tender
Employer
Contract
Category Management Contractors/ SuppliersFramework Contractor/
Supplier
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Procurement Issues
Framework length
Work definition unclear
Secondary Competition requirement
Engagement of Tier 2 and 3 at early stage without a contract
Tier 1 Contractors reluctance to move from pricing auctions
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Our Challenges
Lean is not sustainable in an organisation without senior
management commitment and leadership, how do you get this?
70-80% of our spend is with our suppliers at Tier 2 and below but
we dont directly contract with them, what procurement approach
will leverage value?
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Contact: [email protected]
Visit Us: www.highways.gov.uk
Thank you for listening.
Andrew Wingrove
The Six Golden Rules for Achieving Operational Excellence
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Time spent identifying the key opinion formers who may be both internal and external stakeholders is never time
wasted. They exist at all levels in any organisation so if you get them involved and win them over, your path to success will be
greatly enhanced. Winning over the court of the organisations "public opinion" can prove more important than the empirical
evidence. Success has been achieved because everyone says so.
Learn how to apply Lean effectively; it is an essential tool to achieving operational excellence. All levels of the organisation will need the
appropriate training. Training should be combined with support in the application of Lean on live projects but bear in mind rule 5.
Develop or recruit your own Lean experts they are a vital component in establishing a continuous improvement culture which should be
the ambition of every business.Broaden the understanding of Lean with staff at all levels.
Adapt the role of any external Lean expertise from the initial doing to coaching and supporting your internal Lean capability in the later
stages.
Consciously plan how knowledge transfer will occur between external experts and internal staff, dont assume this will happennaturally.
Lean helps to increase understanding of, and focus on, value add throughout the organisation and can help harness the creativity
and effort of the whole organisation. It can also provide a mechanism for staff empowerment (especially of front line staff) and
ownership of performance.
Provide clear reasons for the goal and present the case in clear unambiguous terms, this avoids confusion and wasting
precious time and effort. Establishing a common understanding on what needs to be achieved at the outset is pivotal to
the success of any undertaking, especially if the goal is large scale and complex in nature
If you wish to achieve anything of real substance you have to get sponsorship at a senior level.
Senior leaders of an organisation need to play an active and sustained role in the process. Without
senior level support it is unlikely that you will get the resources you require for success. The activity is likely to be
superseded by things that are deemed more important by management and even if the goal is achieved it is unlikely to get
the recognition and ongoing support that it deserves.
The Six Golden Rules for Achieving Operational Excellence
Articulate and demonstrate the need clearly
Senior level sponsorship is vital
Get key opinion formers onside
Learn how to do Lean properly
Become self-sufficient in Lean
Use Lean as a staff engagement tool not just for eliminating waste
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