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This document discusses lean facility delivery and construction methods. It defines lean construction as extracting and aligning visions, engaging employees, and using principles and tools to improve safety, quality and reduce costs and schedule. Traditional project delivery is compared to lean project delivery, noting lean aims to raise task completions through standards-based planning and work packaging. Benefits of lean include 4.5-15% logistics and operations savings through improved productivity, flow optimization and reliability. Leadership strategies for lean include transparent status reporting and aligned commitment to task-level excellence.

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Dr. Robert M. Patty, MBA, PE Performance Improvement Facilitator / Consultant 832-717-7027 rmpatty@sbcglobal.net Former KBR Sr. Project Manager Lean-Constructability Program Manager & Consultant Lean Operations for FEL and EPC Lean EPC Facilitator Shorten Cycle Time, Eliminate Error, Improve Quality, Reduce Cost
Overview  Define lean facility delivery service – including lean construction  Benefits and examples – Business case  Implementation – Getting started  Key take away – Differential success • i.e. benefits using lean – Requires differential sponsorship • by executives
The 20,000 ft View of Lean  Extract & align vision – top priorities – Of Client / EPC / Supplier executives  Engage employees – Of Clients / EPC / Supply chain  Extend – ultrahigh safety & quality focus – With principles and emergent change tools – To achieve downward spiraling cost & time  Different – the way the team works together – To improve performance for Clients • With mutual stakeholder benefit
Traditional vs. Lean Project Delivery  Assessment of initial impact on pilot projects – Major oil company, senior project managers • & value improving practices team ERA Traditional Project Design Basis Project Proposal Bid Procurement, Fabrication & Delivery Detailed Design OS Construction Start Up MC Lean Project Delivery Project Criteria WRLP Procurement, Fabrication & Delivery Detailed Design ERA Construction Start Up OS MC System Criteria Component Criteria Construction Planning
Why – What Happens  TIC - logistics & operations savings – ~4.5% to 15% • used in balance with other VIPs  Raising task completions as planned – from 20 to 80%  Example on Mega PreFEED project – Increased national content 28% – Avoided scope growth 2.5% – Schedule-assurance avoided revenue loss 41% – Saved CAPEX 0.5% – Reduced OPEX 0.5% /year
Core Performance Enhancing Strategies  Enhance – Voice-of-the-customer in decisions – Workface level productivity  Engage an emergent change tool set  Extract & manage by standards – Task-level – Manager-performer aligned  Sequence standards – For flow optimization & reliability
All work should be planned in work packages developed from standards ITP – Q/A Requirements Safety Requirements Construction Equipment Scaffold Builds Planned Value - Manhours Timesheet Cost Code System Designation Material Status IFC Drawings Activity ID & dates 3D snap shots of work FIWP Field Installation Work Package Field Work Package FEL Work Package Eng. Work Package Manuf. Work Package
Leadership Strategies  Transparent-status – Execution control boards – Balanced scorecards  Better fitness for outcomes – Aligned commitment – Task level operational excellence  More robust response to – Near misses – Performance breeches – Creative voices
Management by Lean Work-task-level Standards • If any standard does not cause – the right things to happen » consistently and reliably – it is not considered lean • It must be improved until it does – the standard itself and/or – the standard’s deployment policy – workface progress visibility & control Project Critical Chain Schedule Front End Planning Standards EPC Planning Standards Detailed Engineer, Procure, Construct Phase FEED - Select & Define Phase PreFEED- Appraise Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl 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Engineering Workface Sampling :15 :30 :45 :05 :15 :30 :45 :15 :30 :45 :15 :30 :45 :15 :30 :45 6 7: 8: 9: 10: 11: :15 :30 :45 :05 :15 :30 :45 :15 :30 :45 :15 :30 :45 :15 :30 :45 12 1: 2: 3: 4: 5: :15 :30 :45 12: :15 :30 :45 6: 23 Home 25 24 5 15 15 16 16 27 27 21 23 25 25 24 24 5 5 30 30 5 21 21 Title 5 Title 4 Title 2 Title 1 23 23 5 21 25 24 5 Direct Value Added Work - PreFEED 1 Criteria Extraction 2 PreFEED Appraise FEED (Front End Engineering Design) 3 FEED Select 4 FEED Define Detailed Engineering & Procurement 5 Detailed Design 6 Procurement 7 Documenting Asbuilt Contributory Work - Effective Task Setup 8 Task programming 9 Project programming 10 Alignment Contributory Task Process 11 ReScheduling 12 Re-Review 13 Field measure 14 Inspection and Testing 15 Late technical criteria resolution Administrative Delay 16 Clean Up 17 Maintenance and Troubleshooting 18 Transit within Operating Center 19 Transit between Operating Centers 20 Personal Time Waiting, Noncontributory & Rework - Workface Waiting 21 Waiting – for self 22 Waiting – for own discipline 23 Waiting – for other engineering 24 Waiting – for field 25 Waiting – for vendor 26 Waiting – for Client 27 Waiting – Discretionary Ineffective Work 28 Ineffective Meeting Time 29 Ineffective Work 30 Unnecessary design Redesign 31 Redesign – error, omission 32 Redesign – Other disciplines 33 Redesign – Field 34 Redesign – Vendor 35 Redesign – Client
Urgency Justifies Executive Sponsorship  Alignment of work-process excellence – clients, EPC departments & supply chain  Remove comfort zone – If it doesn’t get worse • We will be ok – If it gets worse • We are victims of circumstance, still ok  Executive demand-to-improve – Render traditional cost & schedule • ‘Not-good enough’ – Figure out how to apply lean here
Results of Workface Sampling Chemical Plant Construction, Jan 14-24, 2008 Non Contributory, Waiting & Non Value Added Work 25.2% Direct Value Added Work 35.8% Contributory Work 39.0%
Results of Workface Sampling Chemical Plant Construction, Jan 14-24, 2008 Fabrication & PreAssembly, 5.8% Dismantle, 1.9% Excavating & Backfilling, 2.8% Placing, 0.4% Final Assembly 11.4% Effective Setup 13.5% Direct Value Added Work 35.8% Non Contributory, Waiting & Non Value Added Work 25.2% Contributory Work 39.0%
Results of Workface Sampling Chemical Plant Construction, Jan 14-24, 2008 Non Contributory, Waiting & Non Value Added Work 25.2% Direct Value Added Work 35.8% Contributory Work 39.0% Safety Work, 3.8% Rigging & Flagging, 1.3% Inspection & Testing; 0.5% Material and Equipment Loading, Unloading & Storage, 1.6% Clean Up, 3.2% Maintenance & Repair, 1.0% Personal Time, 1.3% Move Self, 8.9% Move Tools & Materials 14.8% Locating & Positioning 2.2% Holding Materials or Equipment, 0.4%
Results of Workface Sampling Chemical Plant Construction, Jan 14-24, 2008 Direct Value Added Work 35.8% Contributory Work 39.0% Non-Contributory, Non-Value Added Work & Waiting 25.2% Idle - Crew Balance; 6.2% Idle - Interference; 2.6% Idle - Talk; 0.4% Idle - Over Manning; 2.5% Idle - Late Start or Early Quit; 3.2% Idle - Discretionary; 3.2% Idle - Institutionalized Standby; 4.2% Ineffective Work; 1.5% Rework; 1.5%
Situation-at-a-Glance LeJeune® Bolt  Metallurgy of twist-off end – Limits bolt size – ≤ 1.125” Diameter max  Friction–dependent tension indication – Dirt or rust – Causes premature twist-off  Cannot be removed once installed  Ergonomic – Non-impact – Single side/operator installation  Operator must stop – to check washer compression  Inspector – must use feeler gage  Not ergonomic – 2 operators – Impact tool required Direct Tension Indicating Washer
Implementation  Visual Red Squirt Material – occurs upon advent of Proper Tension  Is just what installer needs to know  Altered metallurgy – So serrated end does not twist off Results  Installer tightens – without stopping  Inspection is Visual – or with feeler gage  Non-impacting wrench – used from one side  No size limits – reduces number of bolts  Friction independent – rust & dirt irrelevant  Easily removed – and reinstalled if needed
Executive Sponsorship of Chief Improvement Officer  Differentiation now & future dominance – individuals professionally • project teams & companies – is achievable by real executive commitment • of time, resources – and intellect to learn and implement Call or send email for primer of new handbook Patty, Robert M; Denton, Michael A; Lean Operations for Front-end- loading, Engineering, Procurement, and Construction: Shorten Cycle Time, Eliminate Error, Improve Quality, Reduce Cost, Universal-Publishers, 500+ pgs, being typeset for 2009.

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LEAN_Construction_Tools_and_Methods_PATTY.ppt

  • 2.
    Dr. Robert M.Patty, MBA, PE Performance Improvement Facilitator / Consultant 832-717-7027 rmpatty@sbcglobal.net Former KBR Sr. Project Manager Lean-Constructability Program Manager & Consultant Lean Operations for FEL and EPC Lean EPC Facilitator Shorten Cycle Time, Eliminate Error, Improve Quality, Reduce Cost
  • 3.
    Overview  Define leanfacility delivery service – including lean construction  Benefits and examples – Business case  Implementation – Getting started  Key take away – Differential success • i.e. benefits using lean – Requires differential sponsorship • by executives
  • 4.
    The 20,000 ftView of Lean  Extract & align vision – top priorities – Of Client / EPC / Supplier executives  Engage employees – Of Clients / EPC / Supply chain  Extend – ultrahigh safety & quality focus – With principles and emergent change tools – To achieve downward spiraling cost & time  Different – the way the team works together – To improve performance for Clients • With mutual stakeholder benefit
  • 5.
    Traditional vs. LeanProject Delivery  Assessment of initial impact on pilot projects – Major oil company, senior project managers • & value improving practices team ERA Traditional Project Design Basis Project Proposal Bid Procurement, Fabrication & Delivery Detailed Design OS Construction Start Up MC Lean Project Delivery Project Criteria WRLP Procurement, Fabrication & Delivery Detailed Design ERA Construction Start Up OS MC System Criteria Component Criteria Construction Planning
  • 6.
    Why – WhatHappens  TIC - logistics & operations savings – ~4.5% to 15% • used in balance with other VIPs  Raising task completions as planned – from 20 to 80%  Example on Mega PreFEED project – Increased national content 28% – Avoided scope growth 2.5% – Schedule-assurance avoided revenue loss 41% – Saved CAPEX 0.5% – Reduced OPEX 0.5% /year
  • 7.
    Core Performance EnhancingStrategies  Enhance – Voice-of-the-customer in decisions – Workface level productivity  Engage an emergent change tool set  Extract & manage by standards – Task-level – Manager-performer aligned  Sequence standards – For flow optimization & reliability
  • 8.
    All work should beplanned in work packages developed from standards ITP – Q/A Requirements Safety Requirements Construction Equipment Scaffold Builds Planned Value - Manhours Timesheet Cost Code System Designation Material Status IFC Drawings Activity ID & dates 3D snap shots of work FIWP Field Installation Work Package Field Work Package FEL Work Package Eng. Work Package Manuf. Work Package
  • 9.
    Leadership Strategies  Transparent-status –Execution control boards – Balanced scorecards  Better fitness for outcomes – Aligned commitment – Task level operational excellence  More robust response to – Near misses – Performance breeches – Creative voices
  • 10.
    Management by LeanWork-task-level Standards • If any standard does not cause – the right things to happen » consistently and reliably – it is not considered lean • It must be improved until it does – the standard itself and/or – the standard’s deployment policy – workface progress visibility & control Project Critical Chain Schedule Front End Planning Standards EPC Planning Standards Detailed Engineer, Procure, Construct Phase FEED - Select & Define Phase PreFEED- Appraise Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl Hello MY Exampl 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  • 11.
    Engineering Workface Sampling :15 :30:45 :05 :15 :30 :45 :15 :30 :45 :15 :30 :45 :15 :30 :45 6 7: 8: 9: 10: 11: :15 :30 :45 :05 :15 :30 :45 :15 :30 :45 :15 :30 :45 :15 :30 :45 12 1: 2: 3: 4: 5: :15 :30 :45 12: :15 :30 :45 6: 23 Home 25 24 5 15 15 16 16 27 27 21 23 25 25 24 24 5 5 30 30 5 21 21 Title 5 Title 4 Title 2 Title 1 23 23 5 21 25 24 5 Direct Value Added Work - PreFEED 1 Criteria Extraction 2 PreFEED Appraise FEED (Front End Engineering Design) 3 FEED Select 4 FEED Define Detailed Engineering & Procurement 5 Detailed Design 6 Procurement 7 Documenting Asbuilt Contributory Work - Effective Task Setup 8 Task programming 9 Project programming 10 Alignment Contributory Task Process 11 ReScheduling 12 Re-Review 13 Field measure 14 Inspection and Testing 15 Late technical criteria resolution Administrative Delay 16 Clean Up 17 Maintenance and Troubleshooting 18 Transit within Operating Center 19 Transit between Operating Centers 20 Personal Time Waiting, Noncontributory & Rework - Workface Waiting 21 Waiting – for self 22 Waiting – for own discipline 23 Waiting – for other engineering 24 Waiting – for field 25 Waiting – for vendor 26 Waiting – for Client 27 Waiting – Discretionary Ineffective Work 28 Ineffective Meeting Time 29 Ineffective Work 30 Unnecessary design Redesign 31 Redesign – error, omission 32 Redesign – Other disciplines 33 Redesign – Field 34 Redesign – Vendor 35 Redesign – Client
  • 12.
    Urgency Justifies ExecutiveSponsorship  Alignment of work-process excellence – clients, EPC departments & supply chain  Remove comfort zone – If it doesn’t get worse • We will be ok – If it gets worse • We are victims of circumstance, still ok  Executive demand-to-improve – Render traditional cost & schedule • ‘Not-good enough’ – Figure out how to apply lean here
  • 13.
    Results of WorkfaceSampling Chemical Plant Construction, Jan 14-24, 2008 Non Contributory, Waiting & Non Value Added Work 25.2% Direct Value Added Work 35.8% Contributory Work 39.0%
  • 14.
    Results of WorkfaceSampling Chemical Plant Construction, Jan 14-24, 2008 Fabrication & PreAssembly, 5.8% Dismantle, 1.9% Excavating & Backfilling, 2.8% Placing, 0.4% Final Assembly 11.4% Effective Setup 13.5% Direct Value Added Work 35.8% Non Contributory, Waiting & Non Value Added Work 25.2% Contributory Work 39.0%
  • 15.
    Results of WorkfaceSampling Chemical Plant Construction, Jan 14-24, 2008 Non Contributory, Waiting & Non Value Added Work 25.2% Direct Value Added Work 35.8% Contributory Work 39.0% Safety Work, 3.8% Rigging & Flagging, 1.3% Inspection & Testing; 0.5% Material and Equipment Loading, Unloading & Storage, 1.6% Clean Up, 3.2% Maintenance & Repair, 1.0% Personal Time, 1.3% Move Self, 8.9% Move Tools & Materials 14.8% Locating & Positioning 2.2% Holding Materials or Equipment, 0.4%
  • 16.
    Results of WorkfaceSampling Chemical Plant Construction, Jan 14-24, 2008 Direct Value Added Work 35.8% Contributory Work 39.0% Non-Contributory, Non-Value Added Work & Waiting 25.2% Idle - Crew Balance; 6.2% Idle - Interference; 2.6% Idle - Talk; 0.4% Idle - Over Manning; 2.5% Idle - Late Start or Early Quit; 3.2% Idle - Discretionary; 3.2% Idle - Institutionalized Standby; 4.2% Ineffective Work; 1.5% Rework; 1.5%
  • 17.
    Situation-at-a-Glance LeJeune® Bolt  Metallurgyof twist-off end – Limits bolt size – ≤ 1.125” Diameter max  Friction–dependent tension indication – Dirt or rust – Causes premature twist-off  Cannot be removed once installed  Ergonomic – Non-impact – Single side/operator installation  Operator must stop – to check washer compression  Inspector – must use feeler gage  Not ergonomic – 2 operators – Impact tool required Direct Tension Indicating Washer
  • 18.
    Implementation  Visual RedSquirt Material – occurs upon advent of Proper Tension  Is just what installer needs to know  Altered metallurgy – So serrated end does not twist off Results  Installer tightens – without stopping  Inspection is Visual – or with feeler gage  Non-impacting wrench – used from one side  No size limits – reduces number of bolts  Friction independent – rust & dirt irrelevant  Easily removed – and reinstalled if needed
  • 19.
    Executive Sponsorship of ChiefImprovement Officer  Differentiation now & future dominance – individuals professionally • project teams & companies – is achievable by real executive commitment • of time, resources – and intellect to learn and implement Call or send email for primer of new handbook Patty, Robert M; Denton, Michael A; Lean Operations for Front-end- loading, Engineering, Procurement, and Construction: Shorten Cycle Time, Eliminate Error, Improve Quality, Reduce Cost, Universal-Publishers, 500+ pgs, being typeset for 2009.

Editor's Notes

  • #4 Many of you are very successful now without using lean. 10 to 15 years ago that was also true in shipbuilding, aerospace, automotive, insurance and a host of other industries. In those and many other industries today, one decade after the introduction of lean the prevailing opinion is that it is nearly impossible to make any more money without being lean. Industries are littered with implementation failures linked to lack of effective executive sponsorship.
  • #5 Extract & align Client/EPC/Supplier executives’ vision to become & do to prosper against the storm Engage employees of Clients/EPC/Supply chain in accelerated improvement toward that vision Always high among executive’s top priorities Prior focus – ultrahigh safety & quality of deliverables Lean extension – downward spiraling cost & time Same – many members of the team, principles Different – the way the team works together To improve performance w/ mutual stakeholder benefit