Putting the Focus On the Customer Five Big Ideas Reshaping Project Delivery Hal Macomber and Gregory Howell

It's what you learn after you know it all that counts. – John Wooden UCLA Basketball Coach

Lean Principles Lean Revolution Toyota Production System Lean Thinking Project-Based Production Reliability before Productivity Collaborative Design Rethinking Construction Lean Solutions Five Lean Principles Customer Value Value Stream Flow Pull Pursue Perfection

Lean Revolution

Toyota Production System

Lean Thinking

Project-Based Production

Reliability before Productivity

Collaborative Design

Rethinking Construction

Lean Solutions

Five Lean Principles

Customer Value

Value Stream

Flow

Pull

Pursue Perfection

Five Big Ideas Lean Philosophy for Projects Collaborate; Really Collaborate Optimize the Whole Tightly Couple Learning w/ Action Projects as Networks of Commitment Increase Relatedness

Collaborate, Really Collaborate in Design, Planning, and Execution Finding and working to a purpose held in common. Discover why others are there. Aim for coherence: Align rewards and systems Pay attention to timing level of detail Learn from people who will perform Create situations for surprise contributions Reinforce positive iterations (learning) Avoid negative iterations (rework)

Collaborate, Really Collaborate in Design, Planning, and Execution

Finding and working to a purpose held in common.

Discover why others are there.

Aim for coherence: Align rewards and systems

Pay attention to timing level of detail

Learn from people who will perform

Create situations for surprise contributions

Reinforce positive iterations (learning)

Avoid negative iterations (rework)

Teams: Seeing the Fragmentation Owner Architect Civil Structural Mechanical Electrical Plumbing Landscape Elevators Interior Parking CM/GC Site Steel Mechanical Electrical Plumbing Landscape Framing Floor Cover Painting Geotech Materials Service Traffic Equipment Office Labs Manufact’g Distribution Eng’g Operations

Possibilities from Collaboration Design and construction are iterative solutions to a series of problems possible solution often creates another problem art of the conversation allows creative, yet realistic exploration of the possible

Design and construction are iterative

solutions to a series of problems

possible solution often creates another problem

art of the conversation allows creative, yet realistic exploration of the possible

2. Increase Relatedness among All Project Participants. People come together as strangers on AEC projects. Healthcare projects require learning, innovation, and collaboration. That takes deep relatedness. Learn to build relationships intentionally. Key skill is listening.

People come together as strangers on AEC projects.

Healthcare projects require learning, innovation, and collaboration.

That takes deep relatedness.

Learn to build relationships intentionally.

Key skill is listening.

Transforming Teams: Building Relatedness of the Players Relationships Based on Prudent Trust Teams don’t have meaningless players Teams participate from beginning to completion Execution virtually never relies on only one player! Team members learn to play the game together. M/E/P CORE GROUP Structure Landscape Material Handling Vertical Transp. Site Improvements Interior/ Finishes Building Envelope

Relationships Based on Prudent Trust

Teams don’t have meaningless players

Teams participate from beginning to completion

Execution virtually never relies on only one player!

Team members learn to play the game together.

3. Projects Are Networks Of Commitments There are three kinds of work: Design (from nothing to something) Material transformation Coordination of action Coordination is possible among task performers in the conversations people have with each other

There are three kinds of work:

Design (from nothing to something)

Material transformation

Coordination of action

Coordination is possible among task performers in the conversations people have with each other

Work in Projects Transformation work – physical “touch” work turns inputs into outputs Making and Keeping Commitments – the basic work of all business Design – Creating Conditions of Satisfaction

Transformation work – physical “touch” work turns inputs into outputs

Making and Keeping Commitments – the basic work of all business

Design – Creating Conditions of Satisfaction

The “Physics” of Coordination Conditions of Satisfaction & Date of Completion CUSTOMER Request “ Will You?” Preparation 1 3 4 PO Inquiry Negotiation Clarification & Negotiation Signed PROVIDER 2 Performance Declare Complete “ I’m Done” Accepted Submitted Commit “ I Promise I WILL ” Assurance Declare Satisfaction “ Thank you” Conditions of Satisfaction & Completion Date

Building the Network of Commitments in Planning Hold planning conversations in public. Identify key milestones to deliver the promise of the project. Identify long lead items and make requests. Build phase schedules with those responsible for the work in each phase. Establish rules for speaking up. Make work ready by screening, requesting and securing reliable promises. Only release when ready and needed. Secure promises for daily task completions from each performer or Last Planner Report completions each day. Identify reasons for incompletions. Take action. Re-plan.

Hold planning conversations in public.

Identify key milestones to deliver the promise of the project. Identify long lead items and make requests.

Build phase schedules with those responsible for the work in each phase. Establish rules for speaking up.

Make work ready by screening, requesting and securing reliable promises. Only release when ready and needed.

Secure promises for daily task completions from each performer or Last Planner

Report completions each day. Identify reasons for incompletions. Take action. Re-plan.

4. Optimize the Project Optimize at the project level Not the subcontractor performer group Not the task level Think work streams Think systems Think customer outcomes Pursue planning reliability before worker productivity

Optimize at the project level

Not the subcontractor performer group

Not the task level

Think work streams

Think systems

Think customer outcomes

Pursue planning reliability before worker productivity

Lean Design: An Overview © Lean Construction Institute 2003, used with permission. * Involve downstream players in upstream decisions * Alternate between all-group meetings and task force activities * Create and exploit opportunities to increase value in every phase of the project Organize in Cross Functional Teams Pursue a set based strategy * Select from alternatives at the last responsible moment * Share incomplete information * Share ranges of acceptable solutions Structure design work to approach the lean ideal * Simultaneous design of product and process * Consider decommissioning, commissioning, assembly, fabrication, purchasing, logistics, detailed engineering, and design * Shift detailed design to fabricators and installers Minimize Negative Iteration * Pull scheduling * Design Structure Matrix * Strategies for managing irreducible loops Use Last Planner System of Production Control * Try to make only quality assignment * Make work ready within a lookahead period * Measure PPC * Identify and act on reasons for plan failure Use technologies that facilitate lean design * Shared geometry; single model * Web based interface

Embrace Uncertainty Modern science has moved well beyond a fixation on exact prediction and control; it has learned to accept unpredictability as an unavoidable and, at times, even beneficial aspect of the world, as a resource that can sometimes be harnessed. Mark Buchanan, Power Laws and the New Science of Complexity Management , Strategy+Business, Spring 2004

Modern science has moved well beyond a fixation on exact prediction and control; it has learned to accept unpredictability as an unavoidable and, at times, even beneficial aspect of the world, as a resource that can sometimes be harnessed. Mark Buchanan, Power Laws and the New Science of Complexity Management , Strategy+Business, Spring 2004

5. Tightly couple action with learning Toyota calls it single piece flow For so long we’ve misunderstood what Toyota was doing They have designed their whole system of work to align with customer demand and to give performers throughout the process opportunity to learn while in action Applying the scientific method - PDCA.

Toyota calls it single piece flow

For so long we’ve misunderstood what Toyota was doing

They have designed their whole system of work to align with customer demand and to give performers throughout the process opportunity to learn while in action

Applying the scientific method - PDCA.

Designing Work for Learning Experimentation Single-Piece Flow Habits for Feedback Plus/Delta Reviews Five Why Analysis Planning that Anticipates Learning

Experimentation

Single-Piece Flow

Habits for Feedback

Plus/Delta Reviews

Five Why Analysis

Planning that Anticipates Learning

The tough part is that many times you’ve got to change before the real requirement to change is necessarily seen. That means people will make mistakes. You’ve got to give people the opportunity to make mistakes, to fail, and not to crucify them for doing that. Art Collins, Medtronic, CEO’s on Innovation, Fortune Magazine , March 8, 2004

The tough part is that many times you’ve got to change before the real requirement to change is necessarily seen. That means people will make mistakes.

You’ve got to give people the opportunity to make mistakes, to fail, and not to crucify them for doing that.

Art Collins, Medtronic, CEO’s on Innovation,

Fortune Magazine , March 8, 2004

Reaching a New Frontier: L eadership, Planning and Management Traditional Thought Leadership dictates direction Planning is partitioned by trades/disciplines and is linear. It is predictive and generally fixed, setting parameters for management Management controls are inflexible, autocratic - processes are fixed and measures are isolated and generally historical Lean Thought Leadership facilitates collaborative direction Planning is collaborative, project based and seeks to integrate efforts to eliminate negative iterations. It learns as project evolves Management develops a “network of commitments” to implement plan, evolves intelligence, measures are integrated and proactive

Traditional Thought

Leadership dictates direction

Planning is partitioned by trades/disciplines and is linear. It is predictive and generally fixed, setting parameters for management

Management controls are inflexible, autocratic - processes are fixed and measures are isolated and generally historical

Lean Thought

Leadership facilitates collaborative direction

Planning is collaborative, project based and seeks to integrate efforts to eliminate negative iterations. It learns as project evolves

Management develops a “network of commitments” to implement plan, evolves intelligence, measures are integrated and proactive

Limitations of the Current Approach Activity Centered: Ignores the effect of workflow variation on performance. Separates downstream players from upstream activities Command and control creates a commitment free zone Requires motivation, ignores promising. Fails to produce trust. Push Planning cannot Coordinate the specialists Control only as tracking misses the best opportunity for control © Lean Construction Institute 2003, used with permission.

Activity Centered: Ignores the effect of workflow variation on performance.

Separates downstream players from upstream activities

Command and control creates a commitment free zone

Requires motivation, ignores promising.

Fails to produce trust.

Push Planning cannot Coordinate the specialists

Control only as tracking misses the best opportunity for control

Project Management Works When Practices, Systems and Leadership produce coherent commitments connecting the promise of the project to the work of specialists, and coordinates their actions. Creating reliable workflow within and between workgroups Allowing decisions to be delayed to the last responsible moment. Adjusting appropriately in the moment to increase value and reduce waste. © Lean Construction Institute 2003, used with permission.

When Practices, Systems and Leadership produce coherent commitments connecting the promise of the project to the work of specialists, and coordinates their actions.

Creating reliable workflow within and between workgroups

Allowing decisions to be delayed to the last responsible moment.

Adjusting appropriately in the moment to increase value and reduce waste.

Planning, Controlling & Correcting © Lean Construction Institute 2003, used with permission.

Connecting to the Big Ideas Collaborate - Wait till you see the movie Increase Relatedness - Keeping promises sure helps. Networks of Commitments - Designed and activated in planning. Optimize the Whole - Improving reliability increases total capacity. Connecting Action to Learning - Immediate feedback every day improves planning system performance.

Collaborate - Wait till you see the movie

Increase Relatedness - Keeping promises sure helps.

Networks of Commitments - Designed and activated in planning.

Optimize the Whole - Improving reliability increases total capacity.

Connecting Action to Learning - Immediate feedback every day improves planning system performance.

Five Big Ideas Emergent Outcomes Innovation Competitive Continuous Improvement Reliability Build Trust Collaborate; Really Collaborate Projects as Networks of Commitment Tightly Couple Learning w/ Action Optimize The Whole Increase Relatedness

Breaking with Common Sense Learning to deal with discontinuity requires that individuals and organizations face the difficult task of thinking differently; of breaking habits and questioning long-standing conceptual and cultural commitments. Mark Buchanan, Power Laws and the New Science of Complexity Management , Strategy+Business , Spring 2004

Learning to deal with discontinuity requires that individuals and organizations face the difficult task of thinking differently; of breaking habits and questioning long-standing conceptual and cultural commitments.

Mark Buchanan, Power Laws and the New Science of Complexity Management , Strategy+Business , Spring 2004