Goldratt Consulting Regional DirectorJapan TOC Advancement committee Director

Yuji Kishira

Win-Win-Win Public Works

Japanese Public Construction Current Status

Government spending cut by half

Over 500,000 construction companies

Small and medium-sized local construction companies

A series of large scale disasters are still fresh in our memory and the importance of public works

is being actively discussed widely

Transition of construction investment

0

10

20

30

40

50

60

70

80

90

51 52 53 54 55 56 57 58 59 60 61 62 63 元 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

民間投資額（兆円）

政府投資額（兆円）

(one trillion yen)

(origin)The Ministry of Land, Infrastructure and Transport"Construction investment prospect" - 17 fiscal year is foreseen expecting the amount of the investment until 2002 fiscal year as for results and 15 fiscal year and 16 fiscal year. - Construction investment in government investment that country, local authority, and independent administrative agency, etc. do

- 19 -

Huddle Waste ofTax

ManyScandal

Continuing natural disasters

Ratio of amount of natural disaster damage

Japan: 15%

USA: 22%

Germany: 2%

Britain: 1%France: 2%

The other : 58%

(1970 - 2004)

Japan - Only 0.25% of geographic area of the world accounting for 15% of the amount of the world of the natural disaster damage

(1985-1994)M4 or more and 100km in depth Asa of hypocenter

Earthquake distribution chart of the world

From the Ministry of Land, Infrastructure and Transport material

Expensive construction cost on severe country condition

- Japan is an earthquake large country, and the measures cost is necessary.

Pier of Hanshin ExpresswayCharles de Gaulle AirportPier on access road

In the majority of regions in France, there is no necessity of the seismic design.

From the Ministry of Land, Infrastructure and Transport material

ConflictUndesirable Effect(UDE)

UDE of public works contractors･ Huge deficit･ Budget cut of public works･ Bashing that continues every day･ Local contractors bankruptcy due to a dramatic decrease of public works investment

Taxpayer's UDE･Waste of tax-Huge deficit･ Huddle and many scandals･ Large-scale natural disaster ･ Can’t see what they do

Outside of the project

Project Team Members

Not enough budget/resource

Not enough time

Slow decision by customer or management

Information not shared timely

Suppliers’delivery delay

Change requestall the times

Can’t get supportfrom other people

Can’t get management

support

Working Very Hard!

Four elements of critical chain

1.ODSC “SURIAWASE”

2. Backward scheduling “DANDORI HACHIBU”

3.ABP(Aggressive But Possible) “YUTORI”

4.Buffer Management “SENTE KANRI”

CCPM reminds us Japanese shop floor best practicesLOGICALLY

→Consensus making to have shared goals

→Preparation is 80% of the success of the project

→Educate people while providing concentration

→Take action before too late

Critical Chain Project Management

human problematic behaviors are:

- Parkinson’s Law (use all the time and budget given)- Murphy (anticipate unexpected problems and estimate longer schedules for tasks)- Student Syndrome (start slowly and work overnight before the due date)- Unreported Early Finishes (finish early but use all the time for elaboration)- Multi-tasking (give top priority to all tasks and start them earlier)

It is PEOPLE who run task!

Questions

1. Need to pick up your friend at the station at 10AM. When you leave here?

2. Need to pick up Very Important Person at the station at 10AM. When you leave here?

Difference, Why?

I need Safety!

Safety bugs loves RESPONSIBILITY.

When Safety in the task is remove

12

86

8

10

6

6

6

23

4

7

1.5

1.5

4

38

3

Experience and know-how Hands

on transfer to young engineers

More motivation to deeply think to

finish on time

The person in the next task anxiously waiting to

start on-time

The boss protect the site with the buffer.

The chain of challenging spirit.

Source of theTeam work

Report problem before too late

Project Buffer=

OYAKATA Buffer

BUFFER MANAGEMENT

Looks like exactly what

excellent OYAKATA

DOES!

The buffer management takes a measure before it becomes too late. Tool of “Prevention management"

先手管理： SENTE KANRI

ODSCObjectives

Deliverables

Success Criteria

Build bridge

Build bridge

Build bridge

The mechanism exist to confuse the means with the objectives

すり合わせ： SURIAWASE

Backward PlanningIt is a usual and natural idea.

TargetTaskTaskTask

Success senario

The necessary condition logic

To take the 10 o'clock train

段取り八部： Dandori Hachibu

First Critical Chain Implementation

Young foreman

ODSC: Objective, Deliverable, Success Criteria

Objective -Reinforce river bank for flood protection-Protect local residents from typhoon-Build high quality easy maintenance river bank -Must be completed by Aug before typhoon season-Build trust with government officials and local residents-Make high profit (Pay tax)

Deliverable -Super reinforced bank

Success Criteria

-Complete by the end of July-Quality rating > 85-Profit >16%-Zero accident

Test Run Project Results30% Reduction project duration

Sharing Know-how with young foreman

Foremen participation to Managment

Collaboration acceleration with subcontractors

3month Early Cash Flow

“Endo certainly made great profits in this test project, but far more important is his growth. Endo definitely Changed. He became a really dependable foreman. The Tonebetsu River project is already project in the pastwhich achieved a great result. For Endo, the real challenge is to see achievement in the next project given. (I believe he will make it.) The best outcome of the Tonebetsu River project is thatEndo became one of our best foreman, which is aided by CCPM.We can expect more profits from Endo’s projects now and in the future, which is far more important of this single project success. That is because Endo has overcome a barrier. It’s really amazing.”

Can we help RED project?

I will finish my project early and help RED project.

We will also help it!

We will offer our resource toHelp RED project

Each project manager starts to care the other projects with management view!

思いやり： Help each other

Shared Safety means

It is late because of me ･･･ .

Source of teamwork

Multi-tasking prevented and allowing concentration on one task

The buffer management is a tool for Sente Kanri

Mutual trust to show of bellies each other

Situation of present public works(public office side)

Construction economy report No.46 Quotation from P104 in April, 2006

Research Institute of Construction and EconomyCurrent Reality Tree structural tree

One Day Response Project!

Information does not transfer to contractors

timely manner

Resource shortageOr Excess resource

Sudden works required

Slow finalization of Spec

Cost increase

Synchronization information

DAI MONDAI !

Contractors can be chosenby quality history, proposals

and cost

Contractor canMake quicker

decision

Public works finishearlier

ImplementOne Day Response

Project

Contractors haveeffective informationduring constructions

Contractor managementunderstand status

Contractors canchoose the bit

Contractors gethigher quality

record

Have moreadvantage in thegovernment bit

Contractor canMake a effective

proposals

Governmentsupervisors get moreflexible for change

Public works wiillprovide good quality infractruture while

supporting government financialdifficulty turnaround

Contractors makeprofit

Tax incomeincrease

Enhance competancyof government

supervisors

Realize economiceffect ealier

Governmentsupervisors aremore motivated

Make Tax payers/residenthappy

Contractors arehappy

Quality of publicwork law

implementation

Win Win

Win

One Day Response project

Critical chain project network of One Day Response project

Move construction fasterShorten lead time for construction worksEliminate idle time during constructionContractors make profitsBuffer safety makes safer and high quality worksCommunication enhancementGood for environment and local residentRealize economic effect earlierHuman resource development

One Day Response project test constructionContractor Public Office

　　

　　　

･ Easy to guide because it consults ahead of time. ･ The overtime work decreases. ･ The royal road of OJT. ･ Officer's role in public works reminded･ Human resource development

･ Construction finish earlier･ Teamwork with contractors/officers ･ Residents are very pleased･ Quality enhancement. ･ See the brightness in the constructionBusiness in the future

　　　　　

Resident

･ Experess our gratitude for construction's ending early. ･ An inconvenience under construction finish early. ･ It becomes convenient.･ Good teamwork of contractors/offices makes image drasticImage change of public works ･ The load to natural environment is surely reduced, too.

The works without safety

constructs mutual trust.

Quick response Educate people

quickly

Quick actioncreates trust

Construction is uncertain.

Without SafetyIt is not

competent.

Learn by experience of

their own

A bureaucracyIs always slow

Win

Win Win

Unexpected synergy effect

Public Office

One Day Response

Project

Contractor

TOC Critical chainTrust

Return to the origin of public worksSharing buffer : the source of team work.

Communication & Collaboration

Command & Control

Simple

Complex

Communication

Control

Superficial report

Kishira's 3C Management Positioning Map

Do it Forced to do it

Head QTR control project

Job descriptionMake

manuals and rules

Distrust

Rigmarole

Fulfillment Commitment

Project manager manage project

Make profit with

teamwork

Trust

Human Focus

Report simple remaining date

Management by developing

manual people

Management by developing

human resource

Big change in management focus

ODSC

Buffer

Individual progress

SafetyManagement

YUTORI

One Day Response Level

CC

PM

Level ９％

Profit Increase

４％

Profit increase

28% delay

１０％

Profit increase

5 pilots project result in Kochi Prefecture5 pilots project result in Kochi Prefecture

Low

High

High

２％ Profit decrease (due to big change of material)

But it duration is 50% reduction

-Duration 20% reduced in average while 28% delay in non-CCPM site-Profit 7 % up average-Average quality point : 80 (where general average is 73)

LowSource: Kochi Prefecture

Construction quality enhancement By CCPM in Kochi Prefecture

72

73

74

75

7677

78

79

80

81

82

Ｈ１８全工事 Ｈ１９全工事 Ｈ１８ﾜ ﾝﾃ ﾞー Ｈ１９ﾜ ﾝﾃ ﾞー 礒部組

Standard ＣＣＰＭ

Declaration of Win-Win-Win Public Work ReformMay 8 2007

We strongly remind ourselves of our very important responsibility of public works to secure people’s safety and national land safety. To bring out maximum benefit for society, both government officials and contractors work together on public works by providing better products with faster speed. This brings benefits to all of residence, government and contractors and support to overcome financial difficulty of Japan Government. We declare herewith we strongly advance Win-Win-Win Public Work Reform.

One Day Response Update snap shot in Japan

FY2005 1 pilot runFY2006 15 MLIT Hokkaido Pilot runsFY2007 2523 MLIT across JapanFY2008 >4000 　FY2009 >12000 all MLIT public construction 　

Many positive feedbacks to request to expand more from contractorsAround half of 47 prefectures started pilot runsSome of major cities throughout Japan started implements

TroublesTroublesClaimsClaims

BudgetBudget CutCut

NaturalNaturalDisastersDisasters

Political Political ScandalsScandals

Too much work chasing at us!

Can not live anymore in this

situation!

But what we can do? Sick employees

De-motivated

2006 Miyazaki Prefecture

Aug Nikkei Construction Kyoto Prefecture ArticleSept Construction Management Meeting in Kyushu

CCPM Seminar by Yuji Kishira Nomination of pilot project

Nov 1 Started the projectNov 16 Scandal

Kataino River Bank Emergency Flood Protection One Day Response Meeting　　 2006 Dec 08 (When Governor, general manager, managers arrested)　Joint meeting contractor and Government official Let’s fight with time together! 　　　

Critical Chain saves 30,000 people livesIn Miyazaki prefecture

Over 120 executives learn TOC every year as official training

MLIT University Ministry Land, Infrastructure, transportation and Tourism

Dr. Eli Goldratt comment

Toyota changed plants worldwide and in the future, it will be said that MLIT changed all government management. You should recognize such huge impact to the world

Mr. Andres Uriel GallegoMinster of infrastructure

Ms. Carolina RenteriaDirector general Economy planning

Visited Colombia Government in 2008

Top page of project management magazine

2009 Aug Brazil

Key note in conference

WA book published

2009 Korea

Workshop of Win-Win-Win public work in Fukushima 2010 Dec

ODSC in Gemba (construction site)

週間作業予定表

ODSC Finish picture

Very good objective for us!

Voices from local residents

福島県の発表資料より引用

Evaluation of Proof of Concept

completed Reduced

Disaster Mega EarthquakeDisaster Mega EarthquakeMar 11 , 2011Mar 11 , 2011

Ｉｃｈｉｂａｎ !

Ni ｂａｎ !

Focus! Objectives! Shared in Gemba!

Message from Fukushima government officers

We will rebuild beautiful Fukushima!

Decreasing ･ High Pressure ･ Negative discussion･Waste of time and money･Worry/Stress･ Accidents･ Complex document and report･ Conflict･ Silo decision･ Big enterprise disease･Worry about resource development･ Irritation･ Complex discussion- Errors/Re-work･ Overtime work

Increasing ･ Flexibility･ Positive discussion･ Focus･ Safety･ Custom of thinking deeply･ Helping each other and empathy･ Smiling faces – happy employees･ Holistic decision･ Team work across organizations･Wonderful personnel growth･ Fulfillment･ Profit- Quality･ Time with family-Quality of Life

Decreasing and Increasing By CCPM

Project environment

Uncertainty ！Risk!

Safety BugPerkinson’s law BugStudent Bug

Copy Right Mayuko Kishira

Polishing Finish BugMultitusking Bug

Spirit of “WA”

和Respect harmony .The first charter of Japan first constitutionAD604 (Shotokutaishi)

Win-Win-WinGood for customers, Us and Public(Omi business principle )

Three Japanese Words to Know about Project

MONDAI NAI!No Problem!

Dandori HachibuPreparation is 80% of your project sucess

WAHarmony, Peaceful, Japanese

yuji.kishira@goldrattgroup.com

Win-Win-Win Public Reform SymbolNow Everywhere In Japan

This is just a beginning to make a our world little better

DOMO ARIGATO GOZAIMASU!

Special thanks to Dr. Goldratt to warm appreciation and Credit to my work