3 Greg Howell-Lean Construction

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    A brief history of project management

    Enter the Critical Path

    Practice and the Industry Evolves

    Surprising Data

    A New Planning System

    Practice and the Industry Evolves

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    4 Lean Construction Institute, 2005 www.leanconstruction.org

    How do we manage projects now ?

    Determine client requirements including quality, time andbudget limits. Design to meet them.

    Break project into activities, estimating duration and resourcerequirements for each activity and placing them in a logicalorder with CPM

    Assign or contract each activity, give start notice and monitorsafety, quality, time and cost standards. Act on negativevariance from standards

    Coordinate with master schedule and weekly meetings

    reduce cost by productivity improvement.

    reduce duration by speeding each piece or changing logic.

    improve quality and safety with inspection and enforcement.

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    O A R

    Change the observer

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    Contractor 1 33 %

    Contractor 2 52 %

    Contractor 3 61 %

    Contractor 4 70 %

    Contractor 5 64 %Contractor 6 57 %

    Contractor 7 45 %

    Average 54 %

    Research Findings from early 1990s

    The percentage of tasks completed of thoseassigned in a week, that is ready for the

    next crew to begin work.

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    Percent Plan Complete (PPC) Chart

    Rasacaven: Electrical Power Distribution

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    The Last Planner System of Production Control

    5 - Connected Conversations

    Set milestones & strategy

    Identify long lead items

    Specify handoffsIdentify operational conflicts

    Make ready & LaunchReplanning when needed

    Promise

    Measure PPC & act onreasons for failure to keeppromises

    SHOULD

    CAN

    WILL

    DID

    Weekly Work Planning

    Make Work ReadyPlanning

    Learning

    Master Scheduling

    Milestones

    Phase Pull

    Planning

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    Impeccable Coordination

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    Courtesy of DPR, Inc

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    Courtesy of DPR, Inc

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    Courtesy of DPR, Inc

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    The Last Planner System of Production Control

    5 - Connected Conversations

    Set milestones & strategy

    Identify long lead items

    Specify handoffsIdentify operational conflicts

    Make ready & LaunchReplanning when needed

    Promise

    Measure PPC & act onreasons for failure to keeppromises

    SHOULD

    CAN

    WILL

    DID

    Weekly Work Planning

    Make Work ReadyPlanning

    Learning

    Master Scheduling

    Milestones

    Phase Pull

    Planning

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    CPM -Activities Transactional Command &Control

    Lean - Flow Relational Collaborative

    OperatingSystem

    CommercialTerms

    Organization

    Project management common sense: New Coherence

    Optimizing the project not the piece

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    Results of Lean/Baker 2.0

    Lost Time Case Rate (LTCR): Down 100%

    Recordable Incident Rate (RIR) Down 75%

    BEST Safety performance in the company

    LOWEST overtime percentage in the company Spot Labor Productivity: -10% to +75%

    Variance is most likely a function of the estimate

    Schedules: Ahead or Within a few Days Average gain is 2-3 days per month

    Rework / Punch list cost: Down 15-25%

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    69,000 sq. ft. MOB

    $19m budget -- $20m original estimate

    IFOA team assembled at concept

    3D model for coordination/clashdetection

    Total station layout

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    $1m+ in scope added w/o increasingbudget (TVD wish list)

    Construction savings -- $600k underGMP

    Zero field conflicts at installation

    Layout using Total Station

    MH reduction - 75%; duration - 50%

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    To Learn More

    http://www.leanconstruction.org/

    http://www.leanconstruction.org/http://www.leanconstruction.org/