The document discusses five big ideas for reshaping project delivery using lean principles: 1. Collaborate really collaborate by finding common purpose and aligning rewards through all phases of design, planning and execution. 2. Increase relatedness among all project participants through building relationships and listening to create coherent teams. 3. View projects as networks of commitments where coordination happens through conversations to make and keep commitments. 4. Optimize at the project level rather than subcontractor or task levels by pursuing planning reliability before productivity and organizing in cross-functional teams. 5. Tightly couple action with learning by designing work for learning through experimentation, feedback, and analysis to continuously improve.

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

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

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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

13. 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.

14. 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

15. 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

16. 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

17. 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.

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

19. 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

20. 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

21. 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.

22. 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.

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

24. 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.

25. 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

26. 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