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Agile and Lean for Construction

Adrian Smith
Adrian Smith
Adrian SmithAgile Software Coach at Ennova

Large scale construction projects suffer from cost and time overruns that are typically a symptom of productivity problems and directly affect overall industry profitability. As a result, methodologies have been developed to reduce the risk of overruns and improve project outcomes. A number of these methods are based upon Lean production principles that focus on identifying value, eliminating waste and creating a smooth flow of materials, information and work. The application of Lean to construction is based upon treating the construction site as a temporary production line and is referred to as Lean Construction. Agile methods have been found to improve the reliability of project delivery in complex environments, by decomposing the scope into small manageable parts, then completing these parts in order of greatest value. Although Agile and Lean methods share many common values and principles, Agile methods have not been properly investigated as a means of reducing the overruns associated with large scale construction projects.

Agile and Lean for Construction

1 of 34
Agile and Lean
                   for
              Construction
 September 2011             Engineering Innovation.

Friday, 23 September 2011
Construction Project Overruns                                Engineering Innovation.




        Sydney Opera        Channel Tunnel             Boston Arterial
        House               Final cost 80%             Tunnel
        Final cost 15       more than was              Final cost 196%
        times more than     originally planned         more than was
        was originally                                 originally planned
        planned




                               Copyright Ennova 2011

Friday, 23 September 2011
Project Overruns                                                                                             Engineering Innovation.




      Construction Industry                                                         Software Industry
               Source: 2002 Journal of the American Planning Association                      Source: 2009 Chaos Report - Standish Group




 • 90% projects exceed costs                                                    • 68% projects exceed cost or
                                                                                    time or did not satisfy scope
 • Overruns of between
      50% to 100%                                                               • Average overruns of 43%




                                                                  Copyright Ennova 2011

Friday, 23 September 2011
Cause of Construction Overruns                                                                                 Engineering Innovation.




      •      Poor or incomplete design and documentation
      •      Client scope change during construction
      •      Mistakes during construction
      •      Delays in decision making or instructions
      •      Poor communication and information dissemination
      •      Poor planning and scheduling
      •      Weather
      •      Labour skills, availability or disputes
      •      Incorrect material types or quantity



    Sources:
    Baloyi and Bekker - Causes of construction cost and time overruns 2010
    Memon, Rahman and Azis - Preliminary Study on Causative Factors Leading to Construction Cost Overrun 2011
    Alwi, Hampson and Sherif - Non Value-Adding Activities in Australian Construction Projects 2002


                                                                 Copyright Ennova 2011

Friday, 23 September 2011
Construction Productivity                          Engineering Innovation.




                            Copyright Ennova 2011

Friday, 23 September 2011
Construction Productivity                                                                      Engineering Innovation.




                  Manufacturing                      Construction


                                                                      57%
                                  26%
               62%                             10%


                                12%                        33%

                    Non-Value Added     Support Activity             Value Added




                                                                         Source: Construction Industry Institute
                                             Copyright Ennova 2011

Friday, 23 September 2011

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Agile and Lean for Construction

  • 1. Agile and Lean for Construction September 2011 Engineering Innovation. Friday, 23 September 2011
  • 2. Construction Project Overruns Engineering Innovation. Sydney Opera Channel Tunnel Boston Arterial House Final cost 80% Tunnel Final cost 15 more than was Final cost 196% times more than originally planned more than was was originally originally planned planned Copyright Ennova 2011 Friday, 23 September 2011
  • 3. Project Overruns Engineering Innovation. Construction Industry Software Industry Source: 2002 Journal of the American Planning Association Source: 2009 Chaos Report - Standish Group • 90% projects exceed costs • 68% projects exceed cost or time or did not satisfy scope • Overruns of between 50% to 100% • Average overruns of 43% Copyright Ennova 2011 Friday, 23 September 2011
  • 4. Cause of Construction Overruns Engineering Innovation. • Poor or incomplete design and documentation • Client scope change during construction • Mistakes during construction • Delays in decision making or instructions • Poor communication and information dissemination • Poor planning and scheduling • Weather • Labour skills, availability or disputes • Incorrect material types or quantity Sources: Baloyi and Bekker - Causes of construction cost and time overruns 2010 Memon, Rahman and Azis - Preliminary Study on Causative Factors Leading to Construction Cost Overrun 2011 Alwi, Hampson and Sherif - Non Value-Adding Activities in Australian Construction Projects 2002 Copyright Ennova 2011 Friday, 23 September 2011
  • 5. Construction Productivity Engineering Innovation. Copyright Ennova 2011 Friday, 23 September 2011
  • 6. Construction Productivity Engineering Innovation. Manufacturing Construction 57% 26% 62% 10% 12% 33% Non-Value Added Support Activity Value Added Source: Construction Industry Institute Copyright Ennova 2011 Friday, 23 September 2011
  • 7. Lean and Construction Engineering Innovation. Friday, 23 September 2011
  • 8. Lean Fundamentals Engineering Innovation. Lean originated as an approach to improving manufacturing systems by focusing on creating value and eliminating waste. Lean has now come GOAL: Shortest Time, Best Quality, Lowest Cost, Greatest Safety and Highest Morale to represent a way of FLOW PEOPLE QUALITY thinking and a set of Continuous Leaders as Quality Control practices that can be Flow Pull Systems Coaches Collaboration Error Proofing applied to almost any Integrated Seeing the Real Root-Cause Analysis work process. Logisitics Thing Standardise Visual Continuous Process Management Improvement Philosophy / Principles Copyright Ennova 2011 Friday, 23 September 2011
  • 9. Lean Construction fully occupied and profitable.! This is an example of the waste of common in mass production. Engineering Innovation. These features highlight the importance of the influence of Ford’s conscious design of the production system set in place for the Empire Lean Construction is an adaption of Lean They lead us to identify it as a mass construction system4. principles and practices to the design and Empire State Building execution of construction projects. Lean Construction supplements traditional construction management approaches by focusing on: 1. Creating material and information flows 2. Maximising value generation 3. Using plan, execute and control paradigms Fig. 2: Construction of the Empire Source: Willis and Friedman 1998 State Building (Willis and Friedman THE DEVELOPMENT OF CONSTRUCTION SYSTEMS Copyright Ennova 2011 Friday, 23 September 2011 Introducing the term mass construction to define practices to create
  • 10. Lean Construction Engineering Innovation. Shared Principles • Optimisation of entire system through collaboration and systematic learning • Continual improvement and pursuit of perfection involving everyone in the system • Focus on delivering the value desired by the owner/client/end-user • Creating flow though systematically eliminating obstacles to value creation and elimination of processes that create no value (waste) • Creating pull production Key Differences • Construction projects are unique (one-of-a-kind) prototypes • Multiple suppliers act under different commercial arrangements • Construction environments are typically outdoors and/or difficult to control Copyright Ennova 2011 Friday, 23 September 2011
  • 11. Seven Wastes within Lean Engineering Innovation. 1. Waiting Extra Waste: 2. Motion 8. Under-Utilised People 3. Over Processing 4. Over Production 5. Transportation 6. Inventory 7. Correction / Defect Copyright Ennova 2011 Friday, 23 September 2011
  • 12. Lean Wastes in Construction Engineering Innovation. Waiting Waste Also known as delay, waiting refers to the periods of inactivity that occur because a preceding activity didn’t deliver on time or finish completely. Waiting waste increases cycle time during which no value-added activity is performed Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 13. Lean Wastes in Construction Engineering Innovation. Motion Waste This term refers to the extra steps taken by people to accommodate inefficient process layout, defects, reprocessing, overproduction or excess inventory. Motion takes time and adds no value to the product or service. To move and add value is called work. To move and not add value is called motion. Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 14. Lean Wastes in Construction Engineering Innovation. Over Processing Waste This term generally refers to unnecessary steps in operations, such as reprocessing, double- handling, added communication and double-checking which adds no value to the product or service. Over-processing is often inserted into a process as a result of dealing with defects, overproduction or excess inventory. Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 15. Lean Wastes in Construction Engineering Innovation. Over Production Waste Overproduction occurs when operations continue after they should have stopped.  It’s producing more than is needed, faster than needed or before it is needed. This results in product being produced in excess of what’s required, products being made too early, and excess inventory carrying costs. Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 16. Lean Wastes in Construction Engineering Innovation. Transportation Waste This is unnecessary motion or movement of products or materials that does not directly support immediate production, such as materials being transported from one job-site to another or materials being transported from the job-site back to the Building Partner. Ideally transport should be minimised for two reasons: It adds time to the process during which no value-added activity is being performed, and the material is exposed to handling damage. Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 17. Lean Wastes in Construction Engineering Innovation. Inventory Waste This refers to any supply (materials or goods) in excess of what is required to build the current homes under construction. Inventory includes raw materials, work-in- process and finished goods. Though not all inventory is unnecessary waste, excess inventory can quickly build-up and tie-up dollars and resources. All Inventory requires additional handling and space. Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 18. Lean Wastes in Construction Engineering Innovation. Correction Waste These are products, materials or services that do not meet expectation or conform to specification. Corrections and defects are anything not done correctly the first time and must be repaired, sorted, re-made or re- done, as well as materials which are scrapped due to defects. Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/ Copyright Ennova 2011 Friday, 23 September 2011
  • 19. Challenges for Lean in Construction Engineering Innovation. Prototypes Construction projects are unique (one-of-a-kind) prototypes Environment Field environment is unpredictable - weather, access, ... Communication Teams are geographically separated adding complexity to sharing information Supply Chain Projects are typically deliver by multiple suppliers engaged through adversarial contract agreements Systems/Tools/Education Limited systems to support Lean Construction and limited understanding within the construction industry Copyright Ennova 2011 Friday, 23 September 2011
  • 20. Fundamental Difference Engineering Innovation. Unique and Project Based Repeated and Process Based Copyright Ennova 2011 Friday, 23 September 2011
  • 21. Agile and Construction Engineering Innovation. Friday, 23 September 2011
  • 22. Agile Origins Engineering Innovation. Crystal! RUP! Scrum! DSDM! XP! Agile! FDD! Copyright Ennova 2011 Friday, 23 September 2011
  • 23. Agile Engineering Innovation. Agile is an umbrella term for a set of values, principles and practices. Management! Practices! Technical! Social/Team! Increase Value Practices! Practices! Values &! Principles! Reduce Risk Manage Complexity Empirical control, Continuous monitoring, Heuristics Copyright Ennova 2011 Friday, 23 September 2011
  • 24. Agile Fundamentals Engineering Innovation. AGILE TECHNICAL AGILE TEAM PRACTICES PRACTICES Test-Driven Development Continuous Integration Colocation Automated Deployment Daily Stand Ups Incremental Design and Architecture Iteration Planning Acceptance Test-Driven Development Customer Showcase Refactoring Retrospective Technical Spikes Adaptive Release Plan Exploratory Testing Cross-Functional Team Collective Code Ownership Requirements as Stories Definition of Done Planning/Story Wall Ubiquitous Language Informative Workspace PRACTICES Burn Up/Down Charts Parking Lot Diagrams Success Sliders Planning Poker AGILE PRINCIPLES Simplicity PRINCIPLES Transparency Frequent Delivery Customer Involvement Technical Excellence Team Work AGILE VALUES VALUES Self Organisation Emergent Design Working Deliverables Continuous Improvement Human Interactions Sustainable Pace Customer Collaboration Responding to Change Copyright Ennova 2011 Friday, 23 September 2011
  • 25. Construction Complexity Engineering Innovation. Issue Plan Update Plan Ideal Plan Construction Site • Construction projects are not inherently complex - but because of the challenges encountered during execution they can become complex. • Because it is difficult to maintain an up-to-date plan - the plan rarely reflects the actual sequence in which tasks are completed • Majority of construction tasks are completed based on tacit knowledge and improvisation at the operational level Copyright Ennova 2011 Friday, 23 September 2011
  • 26. Agile and Complexity Engineering Innovation. The principles and practices in Agile help reduce the risks associated with complexity. Setting and agreeing clear goals and boundaries Break problem into small pieces and completing in the order of greatest priority Defer design decisions to the last responsible moment Retrospection and continuous improvement Clear definition of done Measure progress and adapt plans Encourage group wisdom through team work and cross-functional collaboration Copyright Ennova 2011 Friday, 23 September 2011
  • 27. Brief History Engineering Innovation. Development of methods to address construction productivity were conceived at a similar time to development of Agile methods First paper published Last Planner on Scrum System WorkFace Toyota method Published Planning Production System Published Lean first First XP published considered book applicable for Agile published Manifesto construction 1988 1992 1995 1999 2000 2001 2007 Now Copyright Ennova 2011 Friday, 23 September 2011
  • 28. Last Planner and WorkFace Planning Engineering Innovation. Friday, 23 September 2011
  • 29. Last Planner System Engineering Innovation. Method for controlling and providing certainty around materials, resources and work-face dependencies by using a collaborative approach to pull scheduling. Last Planner System Master Schedule Set milestones and key dates Should Specify handoffs Phase Schedule Do between trades Can Make ready and Do Look-Ahead Plan initiate re-planning as required Will Improving Weekly Work Plan Feedback Do & Learning Doing Progress Tracking & Done Measure progress and remedy issues Copyright Ennova 2011 Friday, 23 September 2011
  • 30. Last Planner System Engineering Innovation. Project Controls Project Monitoring & Planning Controlling Master Schedule Constraints Field Execution Weekly Work Planning Daily Standup! Measure Weekly Work Plan Kickoff Progress Make Ready! Retrospective Execute Field Work! Copyright Ennova 2011 Friday, 23 September 2011
  • 31. Weekly Work Engineering Innovation. Master Schedule 6 Week Look Ahead Should Do Can Do Activities Activities KANBAN PLANNING BOARD Can Do Will Do Doing Done ACTIVITY ACTIVITY ACTIVITY Will Do ACTIVITY Activities ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY Limit ACTIVITY Work ACTIVITY in ACTIVITY Progress Copyright Ennova 2011 Friday, 23 September 2011
  • 32. WorkFace Planning Engineering Innovation. WorkFace Planning involves the creation of small, well defined, field installation Work Packages that support the construction workforce. A typical Work Package supports one rotation (5 to 10 days) of a work crew and is based on activities that are extracted directly from the construction schedule/plan. Material and Equipment availability is confirmed Materials, before Work Packages Equipment are issued Master / Phase WorkFace Work Schedule Planning Packages A buffer of Work Packages is maintained to ensure field work Drawings, crews are optimally Specifications utilised Copyright Ennova 2011 Friday, 23 September 2011
  • 33. Agile and Construction Engineering Innovation. Agile Construction Iteration/Sprint Planning Weekly Work Plan User Story Work Package Story Elaboration WorkFace Planning Customer Showcase Site Inspection Retrospective Weekly Review Burn-Up/Down Charts S-Curve Adaptive Planning Look-Ahead Planning Copyright Ennova 2011 Friday, 23 September 2011
  • 34. Thank You Agile and Lean for Construction Adrian Smith Hugh Hofmeister Engineering Innovation. Friday, 23 September 2011