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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