Lean Project ManagementDavid Butcher and Steve Pearson
Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways  Agency• Lean Projec...
Lean HistoryFrom Mass Production …1860s Mass production of armaments and clothingEarly 1900s Beginning of the development ...
Lean History… to Lean Production1940s Eiji Toyoda visits Ford – impressed with scale/flow BUT not waste!1950s Toyota comme...
What is Lean?  Outcomes• Lean will maximise customer value while minimising waste• Lean creates more customer value with f...
What is Lean?  Process• Lean is a methodology which aims to identify blockages to  workflow, and take away those which hav...
What does Lean look like?•   Workflows kept simple, eliminate complexity where possible•   Strive for error prevention rat...
The four ‘P’s of Lean:                           People & Partners                      Philosophy                        ...
Isn’t Lean just another word for ‘Common Sense’?• This is not rocket science – and it is not magic• Yes, it is common sens...
The 8 Wastes    Lean classifies different kinds of waste which    prevent streamlining.•   Transport (of materials, equipm...
Lean differs from conventional thought with its                              ideas of ‘push’ and ‘pull’Push: Making produc...
Creating the Lean Enterprise3 Key Questions• Where are we today? (‘the current state’)• Where do we want to be? (‘the futu...
How would using Lean impact on me/my team/ my                                      directorate?• Lean project management w...
How Lean impacts the bottom line• Do More…  – World class customer service  – Improved quality  – Speeding up the programm...
How Lean impacts the bottom line• With Less…  – Equipment/plant  – Space  – Human effort  – Inventory  – Time/cost  – Thro...
The 8 Wastes- TIM WOODS Transportation                               Inventory                                Motion•Retri...
What characteristics does a Lean organisation have?                  Problem Solving             (continuous improvement a...
It’s about getting more (or the same) for less byempowering people to ensure we are doing the            right thing the r...
Summary• Lean is a way of thinking• Lean aims to come closer and closer to providing  customers with what meets their need...
Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways  Agency• Lean Projec...
Lean Delivery in HA – History• Nichols Review (March 2007) highlighted   – need to improve delivery of value• Lean Pilot s...
Lean Delivery in HA – 3 Year Plan
Extracts from HA Presentation (2nd November)Better Outcomes In Tougher TimesDerek Drysdale –Division Director Lean Improve...
CSR Outcomes• 2009 – White paper on roads programme for next six years• In the CSR, Chancellor George Osborne revealed £83...
“Lean Genome” (the blueprint of common sense)                 People capability               Lean Daily Leadership       ...
HA Major Projects•   M25 Bell Common Tunnel: Lean techniques contributed saved    £5.8m•   M1 25 to 28: Collaborative Plan...
Knowledge TransferLean practitioners develop a Knowledge Transfer Pack to capturelessons learned and ensure benefits can b...
Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways  Agency• Lean Projec...
Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways  Agency• Lean Projec...
A46 Newark to WidmerpoolKnowledge Transfer Pack                           30
Background and Objectives – Project Options           Extending earthworks season              Earthworks 100% dry day out...
Background and Objectives – DefinitionsAchieve maximum output in dry weather for earthworks  Deliverables:  •   Maximum ac...
Current Earthworks ProcessThe current process was examined during High Level Process Mapping and wasnot previously defined...
Earthworks Process ImplementationIt was important to establish current productivity in order to measure anyimprovements. W...
Earthworks Process ImplementationExcavator Utilisation    – Identified as a key indicator of utilisation and performance  ...
Earthworks Process Implementation         October 5                  Down Time   Down Time                     4%         ...
Earthworks Process Implementation          October 5                      Excavator Down Time 5 October
Earthworks Process Implementation            October 12          Excavator Down Time 12 October                           ...
Earthworks Process Implementation                                    October 12Causes for Downtime•   The major cause for ...
Earthworks Process ImplementationRun Time October 5                        Run Time October 12Elements on the haul are eff...
Earthworks Process OptimisationExcess Trucks sitting idle                                                             Pote...
Earthworks Process Potential SavingsThe remaining amount of earthworks is 1.38M m3. If a similarregime of optimising the t...
Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways  Agency• Lean Projec...
Lean ToolsA3 Problem Solving and ReportsAffinity Diagrams                                                Pareto ChartCause...
Some of the basic tools• Define-Measure-Analyse-Improve-Control-Transfer (DMAICT)   – the improvement cycle that underpins...
Some of the basic tools• Visual management   – simple communication of the state of the process (e.g. what needs to be don...
Visual Management System4 elements•   Primary Visual Display (PVD)•   Regular Team Meetings•   Action Sheet System•   Shor...
Examples of Primary Visual Displays
VMS – Benefits• Improves team communication• Focuses on daily performance• Encourages improvement ideas• Captures small is...
Collaborative PlanningThe Traditional Approach to PlanningThe Plan      • Main Contractor/Planning dept does the plan     ...
Collaborative PlanningThe Traditional Approach to PlanningOn Site       •   Contractors try and follow the Main Contractor...
Collaborative PlanningThe Traditional Approach to PlanningProject Management       • Did we make a profit? – if not who ne...
The effect buffer on the Plan    Plan for 1 floor of the hotel construction project                          Estimated    ...
Collaborative Planning ProcessFeedback Loops-The measures indicate when something is going wrong- Any activity not achieve...
The effect buffer on the Plan    Plan for 1 floor of the hotel construction project                      Estimated        ...
Collaborative Planning – Objectives•   The team establish a collaborative programme•   The programme is stabilised and unc...
Programme Planning in Action            Detailed Project Plan                                     DesignerTrades          ...
Implementing 5S in the Workplace
The 5S Process              What is needed for work? What is not needed?                                      SortDon’t st...
Implementing 5S in the Workplace
The Six Sigma Process – DMAIC•   Business Case/ PIP Team             Define•   Problem Statement / Objective       What is...
Cause and Effect Diagram (Fishbone Diagram)                              The Ishikawa diagram (fishbone) is the brainchild...
Failure Mode and Effects Analysis (FMEA)Potential Failure                        S      Potential       O                 ...
Lean Project ManagementDavid Butcher and Steve Pearson
United Kingdom                                                                                                            ...
United Kingdom      £14M      of efficiencies achieved                                                                    ...
Upcoming SlideShare
Loading in...5
×

Lean Project Management

4,902

Published on

You might have heard of Lean – Toyota & Boeing are among the best exponents of Lean thinking, but it’s used by almost all of the top 1000 blue chip companies to drive effectiveness. Simplistically, Lean involves studying all of the activities carried out during delivery of a product or service, improving those that add value and eliminating those that don’t. By identifying discontinuities and poorly coordinated or unproductive activities throughout the delivery team and supply chain Lean can eliminate waste and improve value.
Lean Project Management is the theme of the March 16 Norfolk Branch event to be held at the Norfolk Record Office. Here two experienced Lean Practitioners; Stephen Pearson and David Butcher, will provide you with an insight as to how Lean can help your own business and will give you some tools and ideas that can be used immediately to make a difference in your own organisation.

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
4,902
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
344
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Lean Project Management

  1. 1. Lean Project ManagementDavid Butcher and Steve Pearson
  2. 2. Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways Agency• Lean Project Management in construction• Lean Project Management Tools
  3. 3. Lean HistoryFrom Mass Production …1860s Mass production of armaments and clothingEarly 1900s Beginning of the development of statistical methods of analysis1920s Ford – time and motion studies1930s GM – choice based on complicated forecasts and big batches1950s worldwide – mass production, lower costs but waste evident1960s Motorola – Six Sigma process method for analysis of variation
  4. 4. Lean History… to Lean Production1940s Eiji Toyoda visits Ford – impressed with scale/flow BUT not waste!1950s Toyota commences the path of “Toyota Way” and Production System1970s Six Sigma methods incorporated in the “Toyota Way”1980s The “Toyota Way” begins the development of Lean1990s Worldwide all major blue chip manufacturers have adopted Lean
  5. 5. What is Lean? Outcomes• Lean will maximise customer value while minimising waste• Lean creates more customer value with fewer resources• Lean provides: – fast, flexible processes – that give customers what they want, when they want it – at the highest quality and affordable cost
  6. 6. What is Lean? Process• Lean is a methodology which aims to identify blockages to workflow, and take away those which have no use.• The ideal of Lean is uninterrupted workflow, with every action providing value of some kind.• However, Lean is also about building a culture in which the abilities of staff are fully used and continuous improvement is embedded into the organisation.
  7. 7. What does Lean look like?• Workflows kept simple, eliminate complexity where possible• Strive for error prevention rather than constant checking• Minimise work in progress, queues and delays• Provide what is required, not what you think is customer demand• People work in self-managed teams to deliver a first class service• Active involvement of everyone in the improvement process• Focus on processes not individual tasks The overriding emphasis is the focus on adding value and removing waste
  8. 8. The four ‘P’s of Lean: People & Partners Philosophy Building a solid relationship Following a with our partners in order to philosophy of long fully integrate our work term sustainable process. improvement. Problem SolvingEnd to end Process Making theContinually improving most of staffprocesses to deliver value experience,efficiently and effectively. knowledge & ingenuity.
  9. 9. Isn’t Lean just another word for ‘Common Sense’?• This is not rocket science – and it is not magic• Yes, it is common sense, but it’s a system which has been tried and tested, and has been proven to be workable.• It scrutinises the way that people do things and identifies very specifically those things which cause unnecessary interruptions to the way that work progresses.• CLOTHES HORSE
  10. 10. The 8 Wastes Lean classifies different kinds of waste which prevent streamlining.• Transport (of materials, equipment)• Inventory (overstocking, understocking, or damage of materials)• Motion (Design of material flow)• Waiting (e.g. waiting for signatures)• Over-processing (handling something more times than is necessary)• Overproduction (creating a system which produces too many items)• Defects (e.g. production defects through any means)• Skills (This was added later to the Acronym due to the realisation that training etc. was essential for all the others to be found and eliminated) Acronym: TIM WOODS
  11. 11. Lean differs from conventional thought with its ideas of ‘push’ and ‘pull’Push: Making product before the customer demands it – mass production in advance of orderPull: Creation of product is triggered by the customer – one piece flow stimulated by orderBenefits of pull:• can confirm that each product has a customer• opportunity to be flexible and make changes• defects are spotted early by only producing one unit at a time
  12. 12. Creating the Lean Enterprise3 Key Questions• Where are we today? (‘the current state’)• Where do we want to be? (‘the future state’)• How do we get there? Many initiatives dive straight in here . . . and don’t deliver the benefits• This is fundamental to allowing robust improvement
  13. 13. How would using Lean impact on me/my team/ my directorate?• Lean project management will free up valuable time for staff by removing actions which add no value.• It will reduce the frustration which may come from aspects of work which are not felt to be necessary.• It will allow staff to attend to those tasks which are the most productive.
  14. 14. How Lean impacts the bottom line• Do More… – World class customer service – Improved quality – Speeding up the programme – Improved working environment
  15. 15. How Lean impacts the bottom line• With Less… – Equipment/plant – Space – Human effort – Inventory – Time/cost – Through the relentless elimination of waste and reduction of variation
  16. 16. The 8 Wastes- TIM WOODS Transportation Inventory Motion•Retrieving or storing files •Open projects •Handoffs•Going to the printer •E-mails unread •Extra key strokes•Carrying or posting paperwork •Office supplies •Going to get signatures •Unused records in database •Searching for files / handling paperworkWaiting(Idle time) Over-Processing Defects / Rejects / Re-work •Repeated manual entry of dataWaiting for… •Data entry errors •Un-needed process steps•Slow pc’s •Pricing errors•Customer response •Missing information•Authorisation•The printer / photocopierOver-Production Skills Misuse•A system which calls for extra copies •Not using people to their full potential•A system which continues to create reportswhich are no longer read
  17. 17. What characteristics does a Lean organisation have? Problem Solving (continuous improvement and learning) Process (eliminate waste) People and Partners (respect, challenge and develop) Philosophy and Purpose (long-term thinking)
  18. 18. It’s about getting more (or the same) for less byempowering people to ensure we are doing the right thing the right way!
  19. 19. Summary• Lean is a way of thinking• Lean aims to come closer and closer to providing customers with what meets their need/s• At the heart of Lean are flexible, motivated team members continuously solving problems• Lean is about continuous improvement, the path doesn’t end
  20. 20. Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways Agency• Lean Project Management in construction• Lean Project Management Tools
  21. 21. Lean Delivery in HA – History• Nichols Review (March 2007) highlighted – need to improve delivery of value• Lean Pilot studies over last 3 years – M6 Extension Carlisle to Guards Mill• HA Lean Delivery Team established (April 2009) – supported by Mott MacDonald• Target of £66m savings for HA in 2010/11 (April 2010)
  22. 22. Lean Delivery in HA – 3 Year Plan
  23. 23. Extracts from HA Presentation (2nd November)Better Outcomes In Tougher TimesDerek Drysdale –Division Director Lean ImprovementHighways Agency
  24. 24. CSR Outcomes• 2009 – White paper on roads programme for next six years• In the CSR, Chancellor George Osborne revealed £83bn of cuts• Transport funding will fall by 15% over the next 4 years• Expenditure on new infrastructure down 11% over the period – HA cash budget £2500m in 2011/12 declining to £2000m in each subsequent year – Reduction of over 20% - a challenging budget! – Emphasis on asset repair, life extension, renewal at lowest initial cost or short term cost
  25. 25. “Lean Genome” (the blueprint of common sense) People capability Lean Daily Leadership Management 5S Process Focus Standardise Customer value Visual Collaborative ManagementStrategy Planning Process Control Off site build
  26. 26. HA Major Projects• M25 Bell Common Tunnel: Lean techniques contributed saved £5.8m• M1 25 to 28: Collaborative Planning contributed to delivery ahead of programme• M1 10 to 13: Greater productivity on sheet piling and sheet nailing• A1 Dishforth: Daily asphalt laying rate increased from 1000t to 2000t• M40 J15: 6-12 days saved on original 42 day surfacing programme• A421: Increased blacktop production saved £2 a tonne for 40,000t• A46: Earthworks efficiency activity creating a potential saving of up to £7.5m on the project
  27. 27. Knowledge TransferLean practitioners develop a Knowledge Transfer Pack to capturelessons learned and ensure benefits can be applied to other schemes(Mott MacDonald developed the KTP methodology for the HA)
  28. 28. Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways Agency• Lean Project Management in construction• Lean Project Management Tools
  29. 29. Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways Agency• Lean Project Management in construction• Lean Project Management Tools
  30. 30. A46 Newark to WidmerpoolKnowledge Transfer Pack 30
  31. 31. Background and Objectives – Project Options Extending earthworks season Earthworks 100% dry day output Design Process High Target early completion Stats of Pavement Construction Pavement Construction Earthworks CBM North 3km earthworks platformBenefits Minimum costs of CBM, Blacktop Low Low Ease of Implementation High
  32. 32. Background and Objectives – DefinitionsAchieve maximum output in dry weather for earthworks Deliverables: • Maximum achieved on any given day • Resource efficiency Success: • Completion
  33. 33. Current Earthworks ProcessThe current process was examined during High Level Process Mapping and wasnot previously defined.The Earthworks sub contractor (John Jones), operating with a programme,resourced and planned the works with fluctuating resources as they deemednecessary. “Trial and error” (their words) and conservation of resource(excavator, trucks etc) was the approachJohn Jones is operating on an Open Book contract using Target Costs 33
  34. 34. Earthworks Process ImplementationIt was important to establish current productivity in order to measure anyimprovements. Working with the Team measurement took place on site of theExcavator utilisation over a working day and the Dumper Truck Run TimevariationInitially the Team were sceptical about meaningful variationHowever Mott MacDonald’s finding in the Analyse stage identified significantvariation 34
  35. 35. Earthworks Process ImplementationExcavator Utilisation – Identified as a key indicator of utilisation and performance – Anecdotal evidence from the team on site suggested Excavator down time was “very low - about 5%” (words from the contractor 5% PD) – However analysis showed excavators were idle much more than this
  36. 36. Earthworks Process Implementation October 5 Down Time Down Time 4% 24% Loading Loading Time 96% Time 76%
  37. 37. Earthworks Process Implementation October 5 Excavator Down Time 5 October
  38. 38. Earthworks Process Implementation October 12 Excavator Down Time 12 October Excavator KOM PC450 was engaged in Spreading for much of this observation period, however a significant portion of excavator down time was due to a lack of availability of trucks
  39. 39. Earthworks Process Implementation October 12Causes for Downtime• The major cause for down time observed on the 12 October was identified as being insufficient Trucks for 2 Excavators• No additional trucks were introduced to maintain the programmed work output and thus Excavators were left idle This highlights the importance of ensuring the number of trucks on the site is sufficient at all times
  40. 40. Earthworks Process ImplementationRun Time October 5 Run Time October 12Elements on the haul are effecting the On both full days of analysis, variablerun times of all trucks run times are experienced by all trucks observed
  41. 41. Earthworks Process OptimisationExcess Trucks sitting idle Potential to add We can see that the number of trucks did not always adequately cater to the Haul Length extra trucks to balance haul length
  42. 42. Earthworks Process Potential SavingsThe remaining amount of earthworks is 1.38M m3. If a similarregime of optimising the trucks was adopted the earthworksprogramme could potentially be shortened by 113 days. Using thesame method of calculation the costs for the optimised teamswould be: Potential saving of Un-optimised Optimised £201,809 equipment costs Days 416 303 Plus Total Cost 113 days £2,462,289 £2,260,479 overhead costsFully optimised process (including excess trucks) has potentialsaving of £7,130,000
  43. 43. Outline of Presentation• Overview of Lean Project Management• Lean Project Management in the Highways Agency• Lean Project Management in construction• Lean Project Management Tools
  44. 44. Lean ToolsA3 Problem Solving and ReportsAffinity Diagrams Pareto ChartCause and Effect Diagram PDCAChi Squared analysis Process MappingIntervention Process ReviewKaizen SIPOCFive WhysFMEA Visual Management System Voice of the Customer (VOC)
  45. 45. Some of the basic tools• Define-Measure-Analyse-Improve-Control-Transfer (DMAICT) – the improvement cycle that underpins Lean implementation• Blitz Improvement – a tool of continuous improvement• The 8 wastes – the cornerstone of Lean implementation• 5’s – creating a productive and safe workplace, where abnormalities are made visible and corrected
  46. 46. Some of the basic tools• Visual management – simple communication of the state of the process (e.g. what needs to be done, how things are going)• Standardisation – doing things the same. Every time. In the least wasteful way• Takt Time – the process ‘heartbeat’ to fir customers’ need• ‘Pull’ not ‘push’ – value to the customer (e.g. Releasing work only when ‘pulled’ i.e. through demand)
  47. 47. Visual Management System4 elements• Primary Visual Display (PVD)• Regular Team Meetings• Action Sheet System• Short Interval Leadership Every team can create its own VMS – The frequency of meetings is agreed by the team – For individual projects, daily is often best – Agree a frequency to start and change it as necessary
  48. 48. Examples of Primary Visual Displays
  49. 49. VMS – Benefits• Improves team communication• Focuses on daily performance• Encourages improvement ideas• Captures small issues early and regularly• Builds and embeds a continuous improvement culture
  50. 50. Collaborative PlanningThe Traditional Approach to PlanningThe Plan • Main Contractor/Planning dept does the plan • Imposed on the contractors • Contractors plan site work individually and independently
  51. 51. Collaborative PlanningThe Traditional Approach to PlanningOn Site • Contractors try and follow the Main Contractor plan • But not always bought into achieving the plan • Penalised if they don’t perform to plan
  52. 52. Collaborative PlanningThe Traditional Approach to PlanningProject Management • Did we make a profit? – if not who needs to improve? • Did we finish on time? – if not who needs to improve? • What we will try and do better next time? What are the results of this?
  53. 53. The effect buffer on the Plan Plan for 1 floor of the hotel construction project Estimated Duration Boarding 2 days ½ Plan 1½ days day (each floor has 12 rooms) ElevationElectrician 1st fix 1 Theoretical 3 days 2 days day completion time if all buffer is moved ¾ ¼ to the end of the Plumbing 1 day day day plan = 7¾ days or 17¾ days to complete all 6 Plastering 3 days 1 floors 2 days day Painting 1st coat 1 day ¾ ¼ day dayElectrician 2nd fix 1 day ¾ ¼ day day 1 2 3 4 5 6 7 8 9 10 11 12 buffer
  54. 54. Collaborative Planning ProcessFeedback Loops-The measures indicate when something is going wrong- Any activity not achieved in the 1 week plan goes into next 1 weekplan and 6 week plan- The 6 week plan updates the collaborative plan- The collaborative plan updates the agreed project programme
  55. 55. The effect buffer on the Plan Plan for 1 floor of the hotel construction project Estimated Duration Boarding 1½ days 1½ days Plan (each floor has 12 rooms) ElevationElectrician 1st fix 2 days 2 days Theoretical completion time if all buffer is moved ¾ Plumbing ¾ day day to the end of the plan = 7¾ days or 17¾ days to 2 days complete all 6 Plastering 2 days floors ¾ Painting 1st coat ¾ day dayElectrician 2nd fix ¾ ½ 1 ¼ 1 ¼ ¼ ¾ day day day day day day day day 1 2 3 4 5 6 7 8 9 10 11 12 buffer
  56. 56. Collaborative Planning – Objectives• The team establish a collaborative programme• The programme is stabilised and uncertainty removed• Utilise the team’s skills and experience• Identify potential risks and opportunities• Identify issues and common interface problems and collectively resolve these• Produce forward plans and identify mobilisation needs• Increase predictability of activity and project completion
  57. 57. Programme Planning in Action Detailed Project Plan DesignerTrades Sub-Contractor Architect
  58. 58. Implementing 5S in the Workplace
  59. 59. The 5S Process What is needed for work? What is not needed? SortDon’t stop! “A place forMake 5S a Sustain Straighten everything and 5Sgood habit everything in its place” Do things the same way with … and get rid of the same Standardise Sweep up what is not needed equipment (waste) The 5Ss are an approximate translation from Japanese
  60. 60. Implementing 5S in the Workplace
  61. 61. The Six Sigma Process – DMAIC• Business Case/ PIP Team Define• Problem Statement / Objective What is the process improvement opportunity ?• Primary / Secondary Metrics What is the scope of the problem ?• Voice of the Customer (VOC) Who’s involved / affected ?• Process mapping• Cause and effect analysis Measure• XY Matrix, FMEA What does the process look like ?• Data Collection How is the process performing today ?• Capability Analysis What are the primary causes of failure ?• Graphical data analysis• Statistical analysis Analyse• Correlation (X/Y) Where and when do defects occur ?• DCOM• Quick wins/ solutions• Simulation Improve• Design of Experiments How can we optimise improvements ?• Select best solutions• Implementation/Control Plans• PBL tools to sustain gains Control• Establish Process Management System What controls can be put in place to sustain gain ?
  62. 62. Cause and Effect Diagram (Fishbone Diagram) The Ishikawa diagram (fishbone) is the brainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management. First used in the 1960’s COMMUNICATION PROCESSES different Agents, different quality plans forget Documents get lost No universal documented procedure no standard copy to list sits in the in-tray too busy “doing” rather than recording Misunderstanding Not a KPI Misunderstand Do not understand the shorthand intention of comments Original due dates tight trying to be too succinct Reduce submission Different reviewers review time Different disciplines different types people not always available No common method of Variable content comments Lack of dedicated resources Delay in receiving no set standards Can not use people 100% documents projects vary Do not know level of review Variable qualityBecause “review” is open ended save wasting people’s timeneed to find out what is important lack of understanding decided by SW sloppy Lack of customer feedback Specialists do not know when documents are coming PEOPLE DOCUMENTS
  63. 63. Failure Mode and Effects Analysis (FMEA)Potential Failure S Potential O D R Potential Failure Current ProcessModes (process E Causes of C E P Effects (Ys) Controls defects) V Failure (Xs) C T N Lack of visibility DesignDoes not include of what the deliverable Audit at end of 8 9 9 648detailed design Contractor is requirements implementation going to supply not prescriptive De-scoping and Unclear Not compliant 8 re-scoping of 9 Financial budget 9 648 definition with standards works
  64. 64. Lean Project ManagementDavid Butcher and Steve Pearson
  65. 65. United Kingdom £7.5 mILLIOn sAVIng On thE Applied to the remainder of the project, truck and A46 nEwARk tO wIDmERpOOL excavator optimisation offered savings of over £7.5 million. 30% savings ■ £220 million dualling of 28km of single carriageway Productivity has been improved through better ■ Construction start and completion: co-ordination between the main contractor and July 2009-summer 2012 earthworks subcontractor. When the project ■ Lean focus: dry weather earthworks started a fixed number of trucks and drivers was supplied. Trucks were subsequently matched with A 10 day study revealed that significant excavator fluctuations in earthmoving demand, enabling working time was being lost because too few maximum output. for highways sector trucks were available for loading. Lean analysis showed that, over the study period alone, As earthmoving operations advanced, increasing optimising truck movements would have enabled the length of the haul road, the number of trucks 128 extra ‘truck days’, moving 40,890cu.m more was steadily increased to account for the greater earth and saving nine days against programme. time taken to pick up a load, transport it to the The cost of additional truck hire would have been dump site and return for another load. Account outweighed by savings on excavator hire, delivering was also taken of delays due to plant crossings, £20,000 net benefit. Of far greater significance, mechanical breakdowns, maintenance of haul We’re enabling the UK Highways HOW WE’RE aDDinG value the benefit to the project of early earthworks completion would have been almost £680,000. roads and haul road congestion, as well as time taken to clear stuck mud from the dump truck skip. Agency to realise efficiencies of nearly a third using a process improvement system known as Lean. W e spend £2 billion a year on construction don’t. “Whether a car, a plane or a new section and maintenance of the network of highway, numerous processes are combined in and believe that we can achieve producing the desired outcome. Each process has efficiency savings of 20-30%,” says Highways its own sub-processes. Lean techniques are used Agency divisional director for Lean improvement, to look at the way every sub-process is performed. Derek Drysdale. Lean is a process and product By identifying discontinuities and poorly co- improvement tool which has been used in the ordinated or unproductive activities throughout the manufacturing sector for the best part of 40 delivery team and supply chain we can eliminate years. The Highways Agency has made Lean a waste and improve value,” Steve explains. requirement for its supply chain for all future work. Mott MacDonald is providing the know- prOvinG lean On uK HiGHWaYS how the Agency needs to deploy it nationwide. Up to September 2010, Mott MacDonald-led reviews Mott MacDonald director Martin Perks says: of six projects had identified £14 million of efficiency £10 “From top to bottom, the Agency’s supply chain gains – contributing towards £30 million of savings must demonstrate that it is implementing Lean across 40 Lean pilot projects. Studies included processes. This is an industry changing move.” dualling of the A46 Newark to Widmerpool (right) and widening of the A1 Dishforth to Barton (over Mott MacDonald has worked with the Agency page), as well as construction of highway drainage benefit from every to develop its own in-house Lean capability and and information gantries, winter gritting and salting, produce a strategy and tools to enable the take-up design and construction of standard highway £1 invested in Lean of Lean thinking across the supply chain. structures, roadworks set-up, highway inspection, traffic management and customer care. WHaT iS lean? “Toyota and Boeing are among the best known Derek says that the studies clearly indicate the £600M exponents of Lean thinking, but it’s used by almost cost benefits of implementing Lean management all of the top 1000 blue chip companies to drive practices: “Experience suggests that every £1 effectiveness,” says Mott MacDonald project invested in implementing Lean processes will manager Steve Pearson. Simplistically, Lean yield, on average, at least £10 of benefits.” He is potential annual savings involves studying all of the activities carried out emphatic that Lean is not aimed at paring back during delivery of a product or service, improving suppliers’ profits – quite the reverse. “Working to the Highways Agency those that add value and eliminating those that more effectively is to everybody’s advantage.” 6 Mott MacDonald www.mottmac.com 7
  66. 66. United Kingdom £14M of efficiencies achieved Lean involves studying all of the across six pilot projects activities carried out during delivery of a product or service, improving those that add value and eliminating those that don’t. Martin perks, Mott MacDonald director martin.perks@mottmac.com £3 MilliOn SavinG On THe supply of materials to the paving machine, while DrivinG eFFeCTiveneSS, unique. It’s easier to see how you might perfect a Lean knowledge. The firm has also assisted in a1 DiSHFOrTH TO BarTOn the number of workers in each paving gang was CuTTinG WaSTe process if you’re producing tens of thousands of developing what Derek calls a ‘Lean maturity DiD YOu KnOW… halved – the strength of each gang was initially Most of the recommendations that come out of cars. It’s less obvious in construction where every assessment tool’. This requires suppliers to report as well as applying lean on ■ £318 million widening of 22km of dual matched to the paving machines’ theoretical output Lean analyses are not revolutionary. “But on most road you work on has its own topography and the activities they have undertaken and show construction projects, we’re carriageway into a three lane motorway rather than their actual output, which was almost construction jobs people are immersed in the ground conditions, unpredictable weather and a evidence of benefits delivered – both in terms working with customers ■ Construction start and completion: 50% lower. Productivity was increased thanks to day-to-day activities of running the project and different set of construction personnel – and even of cashable savings and the growth of skills and to achieve lean efficiencies April 2009-April 2012 better communications across the project delivery delivering on their contract. So it’s hard to make where adjacent sections of the same project can knowledge in their workforce. Reporting provides in the banking and financial ■ Lean focus: earthworks, road paving and chain, reducing time lost waiting for deliveries. the time or see the benefits of stepping back be significantly different.” What is common from a measure of how far they have progressed in implementing Lean and identifying scope for future services, waste management, communications duct installation Improvements resulted in 17 days time saving and considering whether their operation is as project to project is generic activities – dry and wet and cost savings in excess of £600,000. effective as it could be,” Martin says. Derek adds weather earthworks, construction of foundations, improvements. “We reckon it will take about five and central and local Earthworks: Disposal of topsoil was eliminated that in the past the Highways Agency has been retaining walls, culverts and bridges, drainage, years for Lean to be fully embedded and 10 to government sectors. and the quantity of imported fill material was Communications: On the 16km Dishforth to focused on issues such as quality, value for money, lighting and communications. deliver maximum benefits. Other industries show halved by looking project-wide at excavation Leeming section, 9m lengths of communications predictability of outturn and journey time reliability, that Lean’s an ongoing journey,” says Derek. and fill requirements and classifying excavated ductwork were installed instead of the normal not on process and product improvement, per se. “We want our suppliers to think about the process “There’s continual scope for improving efficiency, material more accurately. Efficiencies reduced the 6m lengths. This yielded £15,000 of savings on as well as the product and demonstrate steady effectiveness and value.” number of tipper truck journeys by 34,000 and connecting collars alone. With fewer connections, Many in the construction sector initially struggle to improvement in the way they perform the activities saved £2.45 million on haulage and disposal. a 15% time saving was achieved on pressure see how Lean will work for them, Martin adds. “In involved in expanding, improving and maintaining Cracking down on the deficit, the UK government testing the joints. As well as cost benefits, safety manufacturing you have a controlled environment the highway network,” Derek says. “And we require cut budgets across most departments in October Blacktop: The quantity of asphalt laid in each was improved by reducing worker exposure with a consistent supply chain – it’s relatively easy our suppliers to share their learning with the rest 2010. Transport saw available capital fall by 11%. shift was increased by 8% by improving the to traffic. to continually refine the production process. By of the highways community, so that everybody “Lean will play a key role in achieving better contrast, each construction project involves setting drives better value for the public purse.” outcomes in these tougher times,” Martin says. up, running and then decommissioning what is effectively a business, all in the space of a few To this end, Mott MacDonald has designed ClienT: HIGHWAYS AGENCY years. And the majority of construction projects are a methodology for recording and transferring 8 Mott MacDonald www.mottmac.com 9
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×