Lean Construction

Recommended Practices for the
Application of LEAN Construction

Methods to Building New Australian
LNG Capacity
August 2012
Recommended Practices for the Application of LEAN Construction Methods to

Building New Australian LNG Capacity
987-0-85825-975-1
Engineers Australia, 2012
All rights reserved. Other than brief extracts, no part of this publication may be
produced in any form without the written consent of the publisher.
Acknowledgements
This Recommended Practice is the culmination of a series of events and workshops
hosted by Woodside, UWA and Engineers Australia to gather the knowledge of LNG
LEAN Construction in WA and around the world. For more details contact Neil
Kavanagh, Chief Science & Technology Manager Woodside Energy Ltd; Leanne
Hardwick, Executive Director, WA Division, Engineers Australia; or Professor David
Day, Winthrop Professor/Woodside Chair in Leadership and Management, University
of Western Australia. Participants in these events included:
AGC
Forge Clough
NMS
Austal Ships
Foster Wheeler
NRW Civil and Mining
Australian Institute of
Management
IBM Global Business

Services
Southern Cross Electrical

Engineering
BGC
Georgiou
Park Engineers
CB&I
John Holland Group
Present Group
Cetra Technologies
KBR
Rio Tinto
Chiyoda
Kentz
O'Donnell Griffin
Civmec Construction &

Engineering
Killarnee Civil & Concrete

Contractors
Steelplan
Clough
Laing O'Rourke
Technip
Competency Based
Solutions
Matrix Composites &

Engineering
Tenix SDR Pty Ltd
Curtin University
Lean Project Consulting
Transfield Worley Services
Decmil Australia
Leighton Contractors Pty

Ltd
UGL Resources Ltd
Downer Australia
LMR
UWA Business School
Engineers Australia
Lean Construction Institute
VDM Group
Evans Peck
McConnell Dowell
Woodside
Fluor
Monadelphous Engineering
Worley Parsons
Table of Contents
1
FOREWORD ........................................................................................... 1
PRINCIPLES OF LEAN CONSTRUCTION .............................................. 2
2.1 The 5 guiding principles ..........................................................................4

2.2 Womack and Joness LEAN principles...................................................5
3
RECOMMENDED PRACTICE ................................................................ 6
3.1 Eliminating Waste ....................................................................................6

3.2 Target Value Design .............................................................................. 11
3.3 Building Information Modeling (BIM) ............................................... 16
3.4 Last Planner System............................................................................... 19
3.5 Pull Planning............................................................................................ 28
3.6 Information Centre Meetings ............................................................. 31
3.7 5S and Visual Management................................................................. 37
3.8 Standardised work ................................................................................. 46
3.9 Continuous improvement (CI)............................................................. 54
3.10 Built in quality and error proofing ..................................................... 60
3.11 Just in Time (JIT) ..................................................................................... 69
4
HELPFUL RESOURCES ......................................................................... 74
4.1 A3 Reports ................................................................................................ 74

4.2 Recommended reading......................................................................... 75
APPENDIX 1 - LEAN CONSTRUCTION ASSESSMENT FRAMEWORK....... 78
1 Foreword
Building new LNG infrastructure is a massive industrial undertaking, creating nationally
significant wealth engines that operate for more than a generation.
Australia is LNG lucky. It leads the world in the construction of new LNG plants, with
plants under construction in Western Australia, Queensland and the Northern Territory.
Why then the focus on LEAN Construction and why publish this guideline?
New LNG infrastructure is capital intensive costing billions of dollars per train. Australian
LNG plants are generally in remote locations so providing a large local workforce of
affordable skilled labour is a challenge. How then can the cost of new Australian onshore
LNG capacity remain globally competitive ($/tonne per annum)?
One very promising approach is to employ Lean thinking. LEAN is a philosophy that
removes non-value adding activity and changes all stakeholders in the value chain. LEAN
Construction is the adaption of LEAN to project delivery. It is an excellent framework with
which to deliver a transformation in construction productivity for Australian LNG.
Australia has the expertise to transform quickly due to its world class experience of real
LNG construction.
Where else has this happened before? The manufacturing industry has transformed itself
over the last 25 years, with high tech consumer items now radically more affordable then
was ever thought possible. Even in a modern high wage environment, onshore LNG plant
construction in Australia can follow the lead of manufacturing and use the LEAN
Construction framework to achieve ultra-high productivity. The key is to move project
thinking from a series of one-off endeavours to seeing major projects as a continuous
system of construction featuring constant continuous improvement of the repeating
parts.
All stakeholders must play their role to achieve meaningful success owners, main
contractors, sub-contractors, equipment suppliers, regulatory agencies, individual
tradesman and trainers.
This guideline introduces LEAN Construction techniques to those wishing to transform
and seeking a first step on this important journey.
Good luck
Dr Julie Morgan
Chair, Oil and Gas Facilities Group, WA Division Engineers Australia
Leo Coci
Chair, Construction Panel, WA Division Engineers Australia
Page | 1
2 Principles of LEAN Construction

Lean is the engagement of all the employees in an organisation in the on-going
identification and elimination of waste.
In 1990, James Womack, Dan Jones and Dan Roos wrote The Machine that Changed the
World, based on a three year MIT Study into the automotive industry, which showed
Toyota outperforming the large US car manufacturers by a factor of 2:1 on quality, cost
and time to market.
They coined the term LEAN to describe the way the Toyota Production System sought
to continually identify and eliminate waste. They described it as a fundamentally
different system of thinking about how humans work together to add value.
Today LEAN is being used the world over in virtually every different industry and service
from mining to manufacturing, hospitals to hotels, governments to grocers and now
construction.
Many of the LEAN tools and techniques seem very simple, basic things you think you are
doing already. Take a closer look, go to your work site, walk around and talk to people. If
you challenge your assumptions and try to see the waste within your own organisation,
you will start to see the potential of these tools and your people to use them.
It is often said that LEAN is implemented from the bottom up, but it is led and sustained
from the top down. A LEAN transformation is a serious change program for any
organisation and should not be undertaken lightly.
Leadership commitment is paramount a sense of urgency should exist around the
program and a strong guiding coalition formed to steer the program from its beginnings.
A vision should be articulated for LEAN in the organisation, which is communicated not
only formally, but informally, by leadership language and behaviour.
Page | 2
The 5 Guiding Principles:

Challenge
Continuous
Improvement
Go & See
the Status Quo
Respect the
Individual
Teamwork
Womack & Jones Lean Principles:
Value
Value
Stream
Flow
Pull
Perfection
The Recommended Practice Fundamental Techniques:

Target Value
Design
Waste
5S
Standardised
Work
BIM
Last Planner
Continuous
Improvement
Pull Planning
Built in
Quality
Information
Centre
Meetings
Just In Time
Page | 3
2.1 The 5 guiding principles

Challenge the Status Quo
The first Principle is about having the mindset that just because something has always
been done this way, does not mean that it should continue to be. We should not be
satisfied with the Status Quo and should continually challenge our ideas and processes in
order to improve them.
Go & See
If we want to improve our process we must go and look at it ourselves. If there is a
challenge or a problem or an opportunity, YOU go out to the actual worksite to look at it.
Problems are not solved behind a desk and inspiration will not strike doing your emails.
Continuous Improvement
There are always opportunities for improvement we need to create systems and
behaviours within the organisation to encourage, facilitate and recognise Continuous
Improvement. Leaders should encourage simple, quick and inexpensive ideas for
improvement, allow their teams to trial these and build the results into the process using
the LEAN tools and techniques.
Respect the Individual
Each individual has a role to play in the organisation and we should respect this and their
knowledge. If they are doing a job day in and day out they will know a lot more about
that job than anyone else, so leaders need to tap into this knowledge and free up the
creativity of their people.
Teamwork
There should be a pride in working for a team, which comes as each individuals
strengths and weaknesses are understood and improved. In the LNG building business,
the "team" comprises employees from client, main contractor, subcontractor, supplier
and regulator organisations. Communication should be good within the team and
everyone should feel a part of the work and be able to contribute ideas. We need to
remove the fear of asking dumb questions and work together for a solution.
The 5 Guiding Principles are often displayed at the workplace above an Information
Centre (Section 3.6) and referred to during the meetings:
Id like to Challenge that assumption
Lets do a Go & See after the meeting as a team to look at that issue
Joes the tradesman on that job lets go out and talk to him about the issue
Our safety performance has been good, but what can we do to get Continuous
Improvement here how are your ideas coming?
Using LEAN language helps to reinforce the philosophies of LEAN and the leaders actually
reflecting this in their behaviour will do more to cement the change than anything else.
Page | 4
2.2 Womack and Joness LEAN principles

Value
In thinking about LEAN and how to remove waste from the organisation, we must first
think about what actually adds value in the organisation. In order to do this we define
value in terms of the ultimate customer for the construction.
We must continually ask What adds value to the customer? What design, fit and
function is required and what is not? When we focus on this we start to open our eyes
to practices which do not add value and are waste.
Value Stream
To help see in more detail how our processes work, we map out a Value Stream for some
of the materials we use on site. We choose some typical parts a gasket, a steel beam or
a pump, and follow the part through its life cycle from when it is specified, to being
ordered, made, transported, stored, transported again and finally assembled.
When we start to map all of the movements and hold ups and rework we start to see
more of the waste within our current work.
Flow
Now we imagine that all of the material flowed efficiently to site and into construction
with no hold ups and no rework. How can we design our process so that this happens
time after time?
Pull
When we have all of our value adding steps flowing, we start to reduce the timescales in
which we work, and turn our work around so that we are only doing work when it is
required by the customer or by the next process. We are working to a Just In Time
method, building only what is needed, when it is needed, with no waste in the process.
Perfection
Now we embark upon Continuous Improvement we have a good process, but surely we
can tap into our workforce for their knowledge and their ideas about how we could
further eliminate waste, add more value to the customer and improve our process on a
day to day basis.
Page | 5
3 Recommended Practice
3.1 Eliminating Waste
Waste is defined as anything which does not added value to the customer. Value added
work is what changes the form or function of the building or structure, for example,
bolting a valve or pouring concrete, it is what the customer is willing to pay for. Nonvalue added work or waste is everything else, such as waiting for inspection, movement
around the site, rework of welds. We do all of these things but they do not actually add
value to the building or structure.
Imagine a work site where everyone on the site is aware of what waste is and tries to
identify it and then eliminate it from their day to day work. This is the start of a
Continuous Improvement culture and the key to improved quality and productivity.
In order to help us see waste within our process, we split it down further into the 7
wastes (Figure 1) (remembered with the acronym WORMPIT):
Waiting for materials or specifications for a job before it can start, waiting for
others to finish their part of a job, waiting for sign off before moving on
Over Production producing more than is required by the customer; in a construction

environment this may be working on items which are not on the critical path instead
of items which are
Rework any job which is not to the right specification or quality and has to be
rectified is waste
Motion the movement around the site of the people themselves is not actually
adding any value to the site
Processing (over) doing too much to a job, producing too high a specification when
it is not necessary, for example painting 3 times what only needs to be painted once
Inventory too much or too little inventory is waste, we need the right amount to
enable us to do the job well
Transportation moving equipment, tools or materials around the site is waste as it

does not add value to the construction work
3.1.1 Deployment
The first step in the process is to identify which key areas, tasks or crews you will target
to eliminate waste. This may sound odd, but eliminating waste means working
differently and this takes resources so it is wise to do this where you will get the largest
return initially.
Ideally, everyone on site will understand, look for and work to eliminate waste, but we do
not start at this condition, so we choose a series of tasks to work on to grow these skills
within our organisation.
The work areas chosen should give the biggest return on our time and investment. Then
for each area, task or crew we can take one of two initial approaches.
Page | 6
Transportation
Waiting
(eg from one laydown

area to another)
(eg for materials, sign off,

previous work)
Inventory
Overproduction
(over or under)
(eg not on critical path)
Over processing
(eg painting 3 times
when 1 will do)
Repair / rework
Motion
(eg re-welding
rectifying)
(eg to worksite / materials)
Figure 1 The 7 Wastes
Page | 7
Approach 1 Waste Walks

Waste Walks are a relatively light touch approach to identification and elimination of
waste (Figure 2 shows an example of a Waste Walk Sheet) and should include:
teaching the crew(s) working in the area/on the task about the 7 wastes
asking the Team Leader/Superintendent to Go & See the work site and spending
some time (~30 minutes) watching how work is performed
noting down examples of each of the 7 wastes that you see On a Waste Walk sheet
going through these findings with the crew and highlighting the top one or two
wastes which the crew can tackle
investigating the root cause of the waste (using Go & See and 5 Whys) and coming up
with countermeasures
implementing the easy, high benefit countermeasures that the crew can do for
themselves
taking the next Waste Walk.
Waste Walk
Area Observed:
Observer:
Waiting:
Recommendation / Action
Over Production:
Rework:
Motion:
Processing (over):
Inventory:
Transportation:
Date:
Figure 2 Waste Walk Sheet
Page | 8
Approach 2 Value Stream Mapping
Value Stream Mapping is a more in-depth technique designed to set out each of the
steps from the beginning to the end of a specific process (including how much
inventory, rework and waiting there is within a process) and includes:
teaching the crew(s) working in the area/on the task about the 7 wastes
asking the Team Leader/Superintendent to Go & See the work site and spend some
time (~1-3 days) mapping out each step of the process, engaging with the crew
using post-it notes to display these steps up on a wall, including data for each step:
o
number of people doing the work
o
how long it takes
o
any rework seen
o
any inventory seen between steps
o
any waiting between steps
inviting the crew in, refreshing them on the 7 wastes, asking them to review and
agree with the process, then identifying waste in the process with a different
coloured post-it note
brainstorming countermeasures for each of the wastes (once again some further
investigation may be necessary) and adding these to the wall
ranking the countermeasures by ease of implementation and benefit to the process
implementing the easy, high benefit countermeasures first and then working
through the others.
Figure 3 shows a Value Stream Map for a process. The yellow postit notes describe the
process and data and the different coloured notes are the countermeasure ideas
identified by the crew.
Figure 3 Value Stream Map
The identification and elimination of waste is an on-going process. Once the first set of
countermeasures has been implemented, it is time to start again to identify waste in the
remaining process.
Page | 9
When all personnel are trained and experienced in finding and eliminating waste, this
starts to happen everywhere on site on an on-going basis, that is, the engagement of all
employees in an organisation in the ceaseless identification and elimination of waste.
3.1.2 Pre-requisites for Deployment

Waste Elimination is an activity that must be done by the crews, team leaders and
superintendents themselves. In this way they will own the process and start to see waste
more clearly and target it more effectively. It is better to have 5,000 people looking for
waste than just a few leaders or engineers.
However, leadership and support is necessary from the whole management team for
waste identification and elimination to be an everyday part of the job. Leaders on site
need to support the identification of waste and support the devotion of time to Waste
Walks and Value Stream Mapping (VSM).
Everyone involved in an area eliminating waste should receive training to understand
what the 7 wastes are and how to see them in their workplace. This should include:
initial training sessions for all the workers involved
construction of a training schedule that devotes time to each area, task or crew which
has been selected for waste elimination.
3.1.3 Measurement
A good measure for the success of the waste elimination program is the number of
people trained in the 7 Wastes and the number of Waste Walks/VSM sessions being
carried out.
Overall success will be measured in terms of productivity and quality improvements, but
this is difficult to link back to the Waste Walks. It is easier with the VSM process as there
are usually less of these and they have a more defined outcome.
For further information on measurement criteria refer to Appendix 2.
3.1.4 Frequently asked questions

Construction is different will this really work here?
Yes! Every work place and organisation is different, but some fundamentals are the
same. Everyone is able to identify waste within their own process. It must then be
understood in terms of the 7 wastes and recognised as not adding value to the customer.
I have heard of an 8th waste what is this?
LEAN initially described the 7 wastes. An 8th waste of wasted human ingenuity was
subsequently added each of the LEAN tools and techniques tries to harness this
ingenuity by engaging the crews in the process.
Page | 10
3.2 Target Value Design

Target Value Design (TVD) or designing to a target cost is an approach to design where
the final project cost is a design parameter, much as throughput or aesthetics might be.
TVD requires the establishment of a Target Cost by the team (specifically including the
owner) at the start of a project. The team then cannot exceed that cost without owner
approval and uses various techniques to maintain this discipline. In some cases, the cost
will go up but the team must be committed to bringing it back down and make every
effort to do so without compromising other parameters.
TVD has been demonstrated to provide cost awareness to teams in a way that allows
them to collaborate in maintaining or under running a required or target cost. By
continually estimating the current cost of the project and designing accordingly, rework
due to cost overruns is avoided.
3.2.1 Deployment
The steps in process deployment are as follows:
Project management and team members agree that TVD is going to be part of the
design process for a specific project or phase of a project.
The team defines the current scope of the project and gathers all existing cost data or
information for that scope.
Estimators, or the appropriate staff, take that data and prepare an estimate for this
scope in whatever format is acceptable to the team.
This cost data is displayed in a TVD format (Figure 4) for review and acceptance by the
entire team.
Page | 11
Figure 4 Target Value Design for a field house project
Other options are:
The estimator works with the design team to provide cost impact data for decisions
or changes from the scope defined above. The relationship between the estimator
and designers is ongoing and continuous ideally in a big room where all team
members work and collaborate. This impact data is displayed on the TVD A3.
The team (or multi-function smaller parts of the team) review the overall impact of
the cost data and work to ensure that the Target Cost is never exceeded. Typically this
means that if one cost bucket goes up, another one must come down, providing
hard targets or goals for the multi-function teams to address.
3.2.2 Pre-requisites for deployment

Minimum standards for deployment assume that:
the team has some background training in the Target Value Design and understand
their roles in the process
an estimate of the current project cost is available
staff with conceptual estimating skill are available
team members are prepared to work with the estimating staff to understand the cost
of their decisions or design development.
Page | 12
Resources required for deployment include:
a project estimate that is accepted as a target cost by the entire team including the
owner, construction, etc.
a target cost tracking scheme (probably an Excel workbook) available and clearly
displaying the cost impact of decisions or planning by the team
the ability to continuously estimate, including conceptual estimating capability.

The team (owner, management, engineers, designers, etc.) must understand that the
Target Cost is a design parameter that must be achieved, much as throughput, quality or
safety is. The team will regularly (daily or weekly) review the current status of projects
progress toward (or away from) the target cost and work to meet the target. Typically,
multi-functional teams are established to work on each of the cost buckets.
The most important part of TVD is starting with an estimate that the team not only
accepts but believes is correct and provides the best current project information.
Without this consensus, it is very hard for team members to work on meeting or beating
the Target Cost.
The example shown above has buckets for costs on a specific project. For many projects
these buckets work and tie easily to a typical project estimate. In other cases much
different buckets are needed to define the costs and to provide a basis for working to
the Target Cost. The team can select and develop buckets that meet their needs. See
some of the examples below.
In most cases the costs in a bucket are not the responsibility of one team member or
even one group of team members, which is why we talk about multi-functional teams
working to meet the Target Cost. For instance, in the field house example, the multifunctional team working on Mechanical would include a representative from the
architects, electrical and probably the owner, not just the mechanical designer or
contractor.
Figure 5 shows an example of an Excel Work Sheet use to track costs on a Photovoltaic
Cell project. The buckets and breakdown came from the project estimate.
Figure 6 is an example of an Excel Worksheet used to track costs on a hospital project.
Note that the buckets represent Guaranteed Maximum Price packages with the costs
for individual contractors participating in those packages shown. Each contractor is
responsible for maintaining or beating the Project Target Value.
These examples are only a beginning of how TVD displays can be used. The team must
develop categories and buckets that best meet their needs and display the cost
performance in the most efficient and accurate way.
Page | 13
Figure 5 Cost tracking on a photovoltaic cell project
Figure 6 Target Value Design for West Pavilion Hospital Project
Page | 14

How do we establish a Target Cost?
The term Target Cost refers to a number or dollar estimate that cannot be exceeded. As
part of the Target Value Design process, the Target Cost is a dollar estimate established
by the team at the beginning of a project or design effort that reflects the best
understanding of the cost associated with the current project scope
In some cases an owner or other team member may choose to keep contingency, fees or
their own costs out of this number. This is only acceptable if the team understands the
situation. In other words, the Target Cost should reflect any and all scope that the team
can impact, either positively or negatively.
The actual development or basis of the Target Cost can be in any format: by system, by
area, by cost code, by contract value, square footage or tons per year as long as all
accept this as the most accurate available number at the time. Typically, the estimate of
the Target Cost is presented on an A3 document with an appropriate breakdown as
shown in the examples above. The team uses this display to understand their progress,
even if the detailed estimate is in a multi-page document prepared by an estimator.
What is conceptual estimating?
The benefit of TVD comes from the team understanding the impact of each decision they
make on the Target Cost. The only way for this to happen is for the cost impact to be
developed and displayed as the design process proceeds. This means that the estimator
must work in conjunction with the design team to provide them with cost information
on a continuing basis. To do this, an estimator must be able to work with preliminary or
sketchy information and provide the cost to the designer. In most cases final
drawings, specifications or reports will not be available and typical estimating techniques
of doing takeoffs, counting fittings or square footage do not work. Thus the estimator
must be able to provide cost information based on a concept conceptual estimating.
A real benefit of this system comes from knowing these costs during the design process
and never working on or completing a design that will exceed the target cost eliminating
rework or value engineering.
How often must the team review the progress toward Target Cost?
The simple answer is continuously. Realistically, the team should be presented with
information making their progress clear once a week or fortnight. This ongoing
development of cost information makes a monthly report to management or senior team
members an easy task and should minimise preparation of detailed forecasts or
estimates at project milestones or phase gates.
Page | 15
3.3 Building Information Modelling (BIM)

Building Information Modelling is an expansion of the capabilities of 3D CAD (Computer
Aided Design). Typically it includes the use of the model for visualisation, coordination
and collaboration between design entities, different trades (electrical, mechanical, etc.)
or designers, constructors and operators.
Current technology has advanced to the point that the model can be tied to the schedule
(displaying work completed versus work to be done), the materials management system
(displaying areas where material is available or not) and the estimate (providing ongoing cost information). BIM is seen as a way to dramatically improve design and field
performance by minimising clashes, insuring compatibility between trades or areas and
allowing fabrication issues to surface before construction is started.
3.3.1 Deployment
Deployment Process Steps include:
agreeing to use a model and what parts of the project will be modelled
agreeing on hardware, software, location of work stations, etc.
developing project standards for the model that meet the needs of all users (layers,
coordinates, amount of detail, etc.)
starting to build the model based on drawings, sketches, an existing model or

whatever is available
using the model for reviewing progress, collaborating on design decisions, confirming
locations of equipment, clash detection, etc.
establishing a routine for viewing and checking the model so it becomes the centre of
the project teams attention.
incorporating input from additional team members (mechanical, electrical, fire

protection, etc.) about the model and confirming the necessary amount of detail for
this new input such as metal cutting, fabrication, isometrics, etc.
developing a plan for use of the model by field personnel including connection with
schedule and/or materials management systems.

BIM provides one of most important breakthroughs in construction planning, design and
execution since the Critical Path Method of planning and scheduling became common.
However, the team must learn to use the model, to trust the people constructing it and
to regularly Go & See what is happening on the model. Kymmell (2008) describes three
necessary roles:
BIM Manager - in essence a project manager for the model someone who
understands what it can do, what people need to do to make that happen and the
ability to get people and organisations to do that.
BIM Operators all the engineers, designers, IT specialists who actually produce the
model - training and knowledge are essential as it is much easier and more effective
to get it done correctly the first time than to rework it later.
BIM Facilitator after the model is constructed and work has moved to the field, the
BIM Facilitator ensures that the field staff take full advantage of this new tool. The
Facilitator works on collaboration between subcontractors in the use of the model,
identifies new tools that can assist all team members, and helps superintendents
understand what the model can do for them in project meetings.
Page | 16
When a team agrees to use BIM as their primary means of collaboration and design
interaction, it is important that all members agree to this and that all members use the
model as their design documentation. If one member requires hard-copy 2D drawings
for review or checking, many of the advantages of using BIM are lost. Note that many
locations still require hard-copy 2D drawings for permitting or government approvals
and the team must agree on the most efficient method of preparing these.
BIM is a tool that provides opportunities for much greater collaboration between team
members and this collaboration must not be restricted. Consistent use of the model to
discuss, review or work on the current design should be an everyday occurrence.
Discussions between modellers, engineers, operators and managers must be open,
respectful and lead to good decisions on the way forward, whether it concerns a pipe
location or an entire site location.
Minimum standards for deployment include:
access to appropriate computer hardware and software with connection capability

between offices, etc.
agreement between participants on software standards, layer titles, boundaries,

coordinates, etc.
location (ideally) of the designers in a big room either physically or virtually
resolution of who owns the model during design and after construction completion
acceptance of goals for the model and its ultimate use (maintenance, life cycle
costing, etc.) by the team and final owners.
The following resources are required for deployment:
agreement as to how the model will be used
hardware and software
agreed upon schedule and budget for modelling
competent modelling staff.

When do the subcontractors get involved with the model?
This depends on who is building the model and the qualifications of those who are
building it. In most cases it is advantageous to have those with actual construction
experience and responsibility for construction of the project involved at an early stage,
especially if the subcontractor has experienced modellers on staff and plans to use the
model in its fabrication or shop operations in the future. Obviously, if the projects
contracting strategy does not allow selection of the subcontractor until model
completion and a bidding process, the subcontractor start date is delayed and the
advantages of collaboration and construction knowledge is lost during the model design
process.
How will the model be used in the field?
This is a team decision that will be based on what tools (schedule tie-in, prefabrication
planning, etc.) have been included in the model construction. Ideally, each subcontractor
will be able to bring up the model for planning and progress meetings, superintendents
will be able to demonstrate problem areas to their foremen on the model, links to the
material management system will locate system components, overall project progress
Page | 17
will be clearly defined and management can use the model to display issues and progress
to those needing such information.
How will the model be used by operations or maintenance when construction is
complete?
This question needs to be answered by the team during the early stages of design. BIM
can provide numerous tools to help operators and maintenance staff including built-in
product or component data, start-up sequences, warnings as to when maintenance is
required, etc. However, there is some cost to including these features as the model is
being constructed so the final owners of the model must be able to use the features and
feel that they provide value. This information must be part of the early decision as to
what features to include for operators and maintenance.
Page | 18
3.4 Last Planner System

The Last Planner System (LPS) is a production control system for managing projects. It
supplements or replaces a typical management system based on activities and a defined
schedule produced by a project manager.
The LPS produces predictable workflow and rapid learning. This produces maximum
value to the owner by eliminating waste caused by unpredictable workflow. Its use has
enabled contractors to reduce the delivery time of a project and at the same time
allowed specialty contractors to improve utilisation of their resources.
LPS creates commitments among project participants (trades, crews, contractors, etc.)
through a series of planned conversations as in Figure 7. These conversations occur as the
team understands and agrees with the requirements of the Master Schedule, works
together to prepare the Phase Pull Plan and uses this Pull Plan to identify constraints to
accomplishing their work.
Make-Ready Planning and the Weekly Work Planning require commitments between
team members to complete their activities as scheduled and are the basis for the
increased predictability and reliability of work flow on a project using LPS.
These commitments mean that delivering client value is tied directly to specialist/crew
level assignments and coordination between them results from the commitments and
promises they make to one another.
Figure 7 Last Planner System
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3.4.1 Deployment
The deployment process steps are as follows:
select project (or portion of), phase, team and leader to implement the Last Planner
System
introduce the LPS process to the team
review the Pull Phase Plan (or prepare one if not available (see Section 3.5 Pull
Planning) and agree on its relevance to and accuracy for the work to be performed.
Ideally, the team members or their foreman will have participated in the
development of the Phase Pull Plan.
print out or display the next six weeks of work from the Pull Phase Plan (Figure 8).
review the next six weeks of activities to determine whether there are any
constraints to accomplishing the tasks shown on it
list these constraints and agree on who is going to remove them and when (not
necessarily a member of this group). This information is typically displayed on a
Constraint Log (Figure 9).
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Figure 8 Six week look ahead schedule
Page | 21
Figure 9 Constraint log
Have the foremen (last planners) responsible for the work prepare a Weekly Work
Plan (WWP) for the next week, typically by trade or area (Figure 10 shows the detail
necessary in assignment description). Ultimately, the individual WWPs are combined
into single plan for the project and reviewed by the team. The team reviews and
agrees on this WWP, especially on any conflicting activities this is the most
important part of the LPS. It is this collaboration, discussion and agreement that
allow the work flow to become significantly more reliable and, ultimately, more
productive, safer and profitable.
Figure 10 Weekly Work Plan
do the work as scheduled on the WWP, but start (or select an appropriate time) each
day with a huddle to review the planned daily activities - a meeting, typically
standing at the work face, of the last planners and manager (superintendent,
project manager, etc.). This ensures that there are no new constraints or
opportunities to improve the work flow (see Section 3.6 Information Centre
Meetings).
Page | 22
Identify and record successes or failures in completing the tasks as committed. This
record consists of a simple YES if the task is completed on the day committed or a
NO if it was not. As a goal of using LPS is reliable work flow, there is no credit (a
YES) for completing part of a task on the day committed the goal is to totally
complete the task so that the following or successive trade can do their work as
planned. This is one of the major differences between LPS and a typical progress
reporting system.
fill in the columns on the WWP form where each task receives a YES or NO and a
reason (variance) for the NOs. This recording should be done on a daily basis,
typically at the daily huddle where the WWP can become part of the Information
Centre. When a NO is recorded and the reason selected, this should become a
learning experience. The team or crew can identify changes that can be made so the
failure does not occur again (Figure 11).
Figure 11 Weekly Work Plan with YES/NO and Categories of Variance listed with a calculation of PPC
plot the Plan Percent Complete or PPC. This is an ongoing indication of the teams
ability to plan and execute work on a reliable basis. PPC is simply the number of tasks
completed (on the day committed) divided by the total number of tasks scheduled to
be completed that week. The PPC provides a metric to demonstrate planning
proficiency and is the key to demonstrating not only how, but how well, the team is
doing in creating reliable work flow. Figure 12 shows a PPC calculation form, even
though this form indicates performance by contractor, teams are typically judged by
the Total Project PPC, which is poor in this case. Figure 13 demonstrates ongoing
tracking of PPC which provides an indicator of the teams ability to adequately plan
their work.
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Figure 12 Weekly plan percent complete calculation
Figure 13 Plot of plan percent complete
Page | 24
Many teams establish a goal or target PPC, typically above 80%. However, even this
means that a significant number of tasks are not completed on the day committed,
requiring fixes or fire-fighting to keep the work flowing. A goal of 100% is obviously
harder to achieve or maintain consistently (given weather, client changes, slow response
to RFIs, etc.) but provides a real incentive for learning and correcting systemic problems.
Figure 14 shows variances as recorded on the WWP for one week. Typically the variances
are tracked for a longer period of time. Plotting of the variances is not as important as
plotting the actual PPC but does provide an indication to management of any recurring
problems within the system.
Figure 14 Variances as recorded on the WWP for one week.
Many teams have found that using a projector and screen is better for reviewing the
Make Ready Schedule and Weekly Work Plans than individual prints. The team can
concentrate on the screen and the activities rather than their own piece of paper.
The exercise of the team preparing the Phase Pull Plan is very important to their
understanding of the work that needs to happen when they do the Make Ready Planning
and WWP reviews. It is much better if the same team members do both.
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Huddles or Information Centre Meetings are an important part of the LPS. A quick review
of progress from the previous day and a look at the activities for the current day provide
the team with an understanding of their overall progress. Superintendents typically feel
that they communicate with all the foremen by walking around and having a one-onone discussion. A huddle provides a very different and more valuable experience and
saves time.
Confirm that every item shown on the Make Ready Schedule for the current week is
included on someones Weekly Work Plan. In most cases, these items are expanded on
the WWP so that more detail is shown and one can easily confirm whether the activity
has been completed as scheduled or not. A final check ensures that no activities are on
someones WWP but not on the Make Ready Schedule this would indicate that work is
being done that has not been planned and may, in fact, prevent another performer from
accomplishing his plan.

The minimum standards for deployment are that:
the team has some background training in the Last Planner System and
understanding of their roles in the process
a Phase Pull Plan is in place for the work that is scheduled for execution (see Section
3.5 Pull Planning). This type of schedule is essential for successful implementation of
LPS because it represents the consensus plan of the team preparing to execute the
work. A typical schedule prepared by a planner or project manager in a home office is
ineffective, especially if the team members are not committed to it or believe it is
inaccurate or impossible to achieve.
prepared LPS forms are available or can be accessed on a computer
the foremen, group leaders or crew chiefs who will actually do the work participate in
the initial preparation and review of the Make Ready Schedule and Weekly Work
Plans.
Resources required for deployment include:
a means (computer program and printer, white board or other) to prepare the
necessary Make Ready Schedule and Weekly Work Plans
Phase Pull Plan for the work being executed
management support for the implementation of LPS
last planners with an understanding of and willingness to use the LPS.

The LPS is designed to promote conversation, discussion, collaboration and joint planning
of the work to be done. Staff participating in the LPS need to be prepared for this change
in behaviour it is not intended that a superintendent or project manager direct the
group. The group works together to decide on the approach and the details of
accomplishing their tasks, with the superintendent or project manager acting as a
member of the group, not the commander.
When activities are not accomplished as scheduled and a NO is reported, this is a time for
learning, for understanding why this happened and what can be done to prevent it from
occurring again. Remember this team is to be hard on the system (the reason for the
failure) and easy on the person (the one who didnt accomplish their task because of
the system).
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The team must work together to get the project done: optimise the project not the
piece (especially not an individual contractors piece of the action)

Why is it called Last Planner System?
The last planner is the person who makes the actual work assignments, typically a
foreman or crew chief. The Last Planner System provides a means for the foreman and
his team or crew to plan and monitor performance in a way that is visible to all and leads
to increased reliability of the work flow.
Can we start with an existing CPM schedule?
No, though some have tried with little success. The basis of the LPS is the understanding
of and commitment to a schedule that all believe in. That means developing a Phase
Pull Schedule and Make Ready Schedule that is the teams own, that they are committed
to, and then use as a basis for their Weekly Work Plans.
What happens if a team member completes a task before it is scheduled?
Typically the team member gets a YES; however, if this happens on a consistent basis,
the team needs to rethink the planning process. If one member consistently completes
prior to his committed date, the successor work could be done early but isnt because the
successor team member has not planned to do it. In LEAN talk this is the basis of losses
add up and gains can never be recovered, in other words, the team is unable to take
advantage of the fast members performance. There is an argument that finishing
early rates a NO unless 24 hours notice is given that the work will be completed early,
allowing the successor to adjust their plans as well.
What is workable backlog?
Some teams using LPS add work or tasks below the actual scheduled tasks that are called
workable backlog. These are tasks that are discussed at the weekly planning meeting
and all agree can be performed without hindering any other team members. Then if the
team member completes his committed tasks early or can no longer work on his
committed task (because of lack of material, client changes, weather, etc,) he can
perform this workable backlog knowing that he will not hinder another team member.
Completing or not completing this work has no effect on the PPC it gets neither a YES
nor a NO whether completed or not.
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3.5 Pull Planning

A Phase Pull Plan is prepared by a project team in a collaborative fashion to display the
activities necessary to complete a phase of work and identify the best sequence to
complete those activities. The phase typically is defined by an end target or event
pouring slab on grade, ready to erect steel, or (in the case of a design phase) target cost
agreed upon, permit package issued, etc. The team works backwards (pulls) from the end
date to the start of the phase to identify the activities necessary to reach the end
target. The team pays special attention to the handoffs what is necessary to be
completed in one activity before the next one can begin. The actual time or duration of a
phase is based on the master schedule or the teams best estimate phases can be
measured in hours for a shut-down, weeks for a typical construction activity, or months if
the team is developing an overall project plan.
In using the Last Planner System or traditional project management, it is important that
the team understands and accepts the schedule to which they are committing their
efforts. Pull Planning, with its requirement for discussion and collaborative
development, allows the participants to have ownership of the schedule as well as
providing the most realistic information as to the actual sequence and duration of the
activities on the schedule.
3.5.1 Deployment
The deployment process steps are to:
select team and leader to implement first Pull Plan
introduce Pull Planning process to team
select activity or process to be planned
procure and set-up necessary materials
perform Pull Plan

o
identify each participant and have each describe their role
o
each participant prepare post-it notes for their tasks
o
place post-it notes on wall
o
as a group, discuss and rearrange post-it notes so they represent the correct
sequence of activities
o
add durations to post-it notes
o
have the team do a final review of the sequence, durations and any described
hand-offs
o
prepare corporate standard Gantt chart schedule representing the post-it notes
on the wall
o
issue the Gantt chart schedule to the team and review to ensure that decisions
and plans made during the Pull Plan session have been incorporated
o
use the Phase Pull Plan for Make Ready Planning and preparing Weekly Work
Plans for the project (see Section 3.4 Last Planner System and Figure 15).
Page | 28
Figure 15 Team members "at the wall"
Start the session with a discussion by each member of their role and how they will
perform it.
In organising the sequence of post-it notes, pay particular attention to the handoff
requirements what each member needs prior to beginning their successor task. A joint
understanding of handoffs and what is required for each is the most important
difference in using this technique. Ensure that each team member agrees with his
predecessor and successor as to state of completion of the activity being discussed.

Team members must understand their part or role in the process being Pull Planned.
Openness and willingness to discuss their activities is essential to the success of the Pull
Plan their ability to listen and understand others roles and constraints during the
process is critical to a successful Pull Plan. The facilitator or leader of the Pull Plan must
be open to comments and requests from all the team members and not stifle discussion,
especially about the requirements for handoffs.
Minimum standards for deployment are that:
the target date established for the phase that will be Pull Planned
the team has some background training in Pull Planning and understanding of their
roles in the process. The foremen, group leaders or crew chiefs who will actually do
the work should participate in the Pull Plan.
adequate time has been allowed for the exercise to be completed and have resources
available to input the Pull Plan to the corporate scheduling system. A typical Pull Plan
is completed in 2 to 4 hours; however, if it is a large phase with many participants a
day or more might be required.
Required resources include a whiteboard, glass wall or long sheet of drafting paper, postit notes typically 3 x 5 or 4 by 6 of different colours (one colour for each group), felt
pens and space to congregate around the wall.
Page | 29

Why is it called Pull Planning? It is called Pull Planning because only the activities that the final client has requested,
required or pulled are included. This is evidenced by beginning at the right side of the
wall and only adding those activities that are required to accomplish the final
requested activity or step.
Can we start with a wall that has dates or time periods marked on it? Many people do this, especially when pulling a design process, be careful that it doesnt
interfere with the team freely developing the sequence they believe will get the phase
done in the most appropriate fashion.
Can we use Pull Planning when our team is geographically dispersed?
The most important benefit from using Pull Planning is the discussion and
collaboration that occurs as the post-it notes are being arranged on the wall. It is this
collaboration that develops a sense of ownership of the schedule by the entire team. If
some members of the team are located apart from others, the first suggestion would be
to ensure that all groups of team members are represented. If the Pull Plan session is
about engineering, then make sure construction and logistics are represented, even if
one or two team members must travel to participate. Similarly, if the subject of the
session is construction, ensure that some engineering or operation staff are able to
participate. If even this approach is impossible, the team should consider video
conferencing or the use of electronic white boards where the post-it notes can be moved
remotely.
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3.6 Information Centre Meetings

Information Centre Meetings are 10 15 minute stand up meetings around a
whiteboard to review key performance metrics (KPIs) for the team on a daily basis.
Information Centre Meetings are 10 15 minute stand up meetings around a
whiteboard to review key performance metrics (KPIs) for the team on a daily basis.
Information Centre Meetings form the nerve centres of the project, ensuring each person
on site is aware of their role, delivering the site KPIs and enabling problem solving around
concerns as they arise (Figure 16).
Figure 16 Information Centre Meetings
3.6.1 Deployment
These meetings take place at workgroup, contractor and site levels. They enable
information, targets and results to flow up and down the site organisation.
The workgroup Information Centre Meetings happen as the pre-start meetings between
the supervisor and workgroup in the crib room, office or at the worksite (if a mobile
Information Centre Board is used).
The contractor Information Centre Meetings occur slightly later after each of the
workgroups are underway and involve managers and supervisors at the various
contractors offices.
The site Information Centre Meeting happens after this and involves the senior
management from the owner, EPCM and contractors coming together to review site
performance later in the morning.
Page | 31
At each meeting, one of the supervisors or managers leads the team through the metrics
on the board - reviewing the past 24 hours, looking ahead to the next 24 hours, week or
six weeks and raising any concerns from past performance or future issues.
Purpose
Audience
Frequency
Content
creator/maintainer
Workgroup
Information
Centre Meeting
Pre-start
meeting to
review how we
went yesterday
and specific
targets for today
Contractor
Supervisor and
Workgroup
Each Shift
Individual
workgroup KPIs
Contractor
Information Centre
Meeting
Review metrics from
past 24hrs, next
24hrs, 6 week look
ahead
Site Information Centre

Meeting
EPCM and
Contractors
Owner and EPCM

leadership
Daily
Project KPIs, Critical
Path
Daily
Project KPIs, risk
dashboard/issues log
Project Snapshot,
reviewing barriers to
progress (yellow and red
KPIs) and develop plans to
resolve
Three key physical elements of an Information Centre Meeting are:
a short term board which contains visible, easy to understand metrics (you can tell
OK from NOK (not ok) in 3 seconds or less for each metric). Metrics are updated by
hand and only the metrics needed to run the site, contractor or work area are used.
a long term board which holds the master or phase schedule. Progress is tracked daily
or weekly here.
a problem solving board which enables raising, tracking and escalation of concerns.
Concerns are raised if a metric is NOK or the schedule is behind. 95% of concerns
should be solved at the level at which they are raised, with only 5% moving up to the
next level Information Centre Meeting.
Figure 17 shows some example Information Centre Meetings:
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Site Info Centre

meeting
Contractor Info Centre

meeting
Workgroup Info Centre

ready for pre-start
Figure 17 Examples of Information Centre Meetings
The first step in the deployment process is to decide what levels of Information Centre
Meetings are required (Figure 18).
Figure 18 Levels of Information Centre Meetings
Page | 33
Design of KPIs
High level project KPIs should be translated into KPIs for each contractor, and then for
each workgroup. Tradespeople can then see how day to day performance is linked to
overall project objectives.
Often a Value Driver Tree is used to break down the high level KPIs and make them into
something meaningful on a shift by shift basis. At the site level we may measure outputs
of construction, but as we translate this for use lower down we change to measuring
inputs to construction. If we take care of the inputs, the outputs should take care of
themselves.
The owner sets the high level KPIs then the EPCM and Contractors become involved in
the iteration of these and how they will be delivered. For example:
Equipment availability > 85% (at site information centre):

o
all equipment shown and planned maintenance > 90% on time (at contractor
level information centre)
o
Pareto and problem solving on major faults with equipment (at contractor level
information centre)
o
daily equipment checks done (at workgroup level information centre)
o
equipment released on time for maintenance (at workgroup level information
centre)
Each of these KPIs is then defined, so that it is easy to measure and update. Strict
definition is essential responsibility, targets, how each KPI is calculated and data source
are all needed. For example:
The owner of the KPI is made clear they have responsibility for updating the KPI by
hand on a daily basis
The KPI is easy to understand and it is clear whether it is OK or not (e.g. target line,
red or green areas of the graph, or red amber green to indicate status).
Source data is made readily available to simplify day to day update of the KPIs.
For each of these Information Centre Meetings:
order the magnetic white board and stationary necessary for the Information Centre
Board
find a location central to the group of people to attend the meetings in a shared area,
not someones office
determine the metrics to be used by working with the participants of the meeting
the meeting owner is key here (e.g. the supervisor for the workgroup, the manager for
the contractor, or the senior manager for the owner). What metrics do they need to
run their area, firm or site?
review safety metrics first - safety comes first at an Information Centre Meeting
display the metrics in draft form to get an idea of how they flow and what they look
like. This can be just sketched on a piece of A4 paper with marker pen and fixed to a
wall with blue tack.
remember the 3 second rule, can you tell OK from NOK in 3 seconds or less? Each
metric must have a clear target and be easy to update by hand.
create templates from your drafts and assign owners to ensure the metrics are filled
in and up to date before the meeting each day
Page | 34
agree the rules for the meetings, such as:

o
everyone attend on time
o
10 minutes stand up at the boards
o
one conversation
o
mobiles on silent
o
no problem solving at the meeting
hold the meetings daily at designated times e.g. pre-start for work groups, 8am for
contractors and 10am for site
review the metrics by exception, that is, only speak about the ones which are NOK. If
everything is tracking fine the meeting will be very short but be careful as the targets
may also not be stretching enough, or you might not have all relevant KPIs covered.
The Information Centre Meeting metrics will not be right first time, take the
opportunity to review the metrics regularly and to challenge each one to ensure it
adds value and to ensure you are covering everything you need to cover.

Information Centre Meetings must be led from the top of the organisation and require
discipline and rigor. Meetings should last 10 15 minutes and require full attendance on
time. KPIs must be updated before the meetings. Participants need to have one
conversation at a time and not problem solve during the meeting. Concerns are allocated
to a participant who is asked to solve the issue outside of the meeting by using Go Look
See (physically going to the workplace to look at the concerns) and 5 Whys (asking why
this happened 5 times). Information Centre Meetings are no blame sessions each
concern is an opportunity for improvement which we must work on.
Metrics should be continually challenged to ensure the meetings are adding value and
making the delivery. Leaders in the meetings keep the meetings moving forward,
challenge any NOK metrics to ensure concerns are raised and recorded and foster a
positive environment.
Minimum standards for deployment assume that:
Daily Information Centre Meetings are held which cover all personnel on site.
KPIs are clear and flow from the owner through the EPCM, the contractor and up to
the tradesperson, so that each individual knows that what they do on a daily basis
contributes to the delivery of the project and whether this is meeting the target or
not.
Safety metrics are key at the Information Centre Meetings and are always the first
things to be reviewed.
A high level schedule appropriate to the participants of the Information Centre

Meeting should be displayed and reviewed weekly. Daily tasks should also be tracked
at lower levels).
A series of workshops should be held with the leaders and participants of each of the
Information Centre Meetings to determine the metrics they require on their board.
The following supplies will be necessary:
magnetic whiteboards
mobile whiteboards with weather proofing
magnets
hard plastic folders to hold the measures templates
whiteboard markers and rubbers

Page | 35
printed and laminated headings for Information Centre Boards and metrics
ticks and crosses to indicate which metrics are OK and NOK
printed templates for the measures

Do we have to update metrics by hand?
Yes, for many reasons:
Many organisations have mountains of data and no information the data is

inaccessible inside computer systems and never really used by individuals. In the
Information Centre Meeting we challenge this by asking a person to extract the data,
think about it and turn it into information by hand.
In order to understand the metric in 3 seconds or less it has to be simple, updating by

hand forces this simplicity. It is actually harder to make things simple than it is to put
up an incomprehensible data dump, but much more useful.
Holding the pen engages the brain and forces a sense of ownership of the metric that
printing out a graph and sticking it up does not.
Metrics should be updated by their real owners, not the LEAN coach, a secretary or
any other, once again holding the pen forces engagement thought and ownership.
Do we have to stand up?
Yes, Information Centre Meetings are short meetings (10 15 minutes). We are not there
to have a coffee and relax, standing up gives the meeting an energy and pace it would
not otherwise have.
Can we change the metrics?
Yes, challenging the metrics you are reviewing on a regular basis is healthy. It may be
that a particular issue has come up that you want to track specifically, or that the metrics
you have are not telling the whole story and you wish to add or replace something.
Why cant we problem solve at the meeting?
In LEAN we believe that problem solving requires the solver to go to the worksite, look at
the actual condition and thereby see what the problem really is (Go & See), then to ask
why this problem occurred and to continue to ask why until the root cause is discovered
(5 Whys). This cannot be done at a meeting.
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3.7 5S and Visual Management

5S and Visual Management are part of the foundation of LEAN, enabling operational
stability. They increase productivity, quality and morale by having a safe and efficient
site.
In 5S we think of how to best place everything we need on site. At the macro level this
includes site layout, access points, laydown area positioning, work fronts and crib rooms.
At the micro level it may include positioning of grinding tools in a storage container,
colour coding welding equipment or sorting a computer filing system in the office.
In Visual Management we think of how to make the area in which we work tell us a story
by visual means are all my tools here, do I have enough consumables, are the parts for
tomorrows job in the staging area?
These techniques tell us whether we are in control or not, allowing us to manage by
exception, by highlighting abnormalities. They are also fundamental to the engagement
of all employees, increasing ownership of the work site and morale very few people
want to work in an untidy, disorganised environment.
Five Key Elements of 5S:
Sort do we have everything we need, but only those things we need, to accomplish
our task within the site, the work area or the office?
Set how should we best design our work site or area so that the areas, materials,
tools and equipment are in the safest, most efficient and best place. Visual
management is then used to set the workplace so an abnormal condition is easily
seen sign posting, demarcation, shadow boards, labelling, minimum/maximum
levels, numbering and colour coding all enable us to tell at a glance that we are set up
for success.
Shine bringing things to a clean and clear condition and keeping the workplace in
good order so that it is ready for use.
Standardise agreeing between the team the standard to which the workplace will
be kept, photographing this and displaying it so everyone is clear on how the work
place should look.
Sustain the leadership work necessary to keep the first 4Ss in place, the work of
auditing and visible leadership in the work place.
Key Elements of Visual Management:

Visual Management can be a variety of displays and visual markers in the workplace that
help you:
establish and post work priorities
visually display whether expected daily performance was met - was today a good day
or a bad day?
better understand the flow of inputs and production
quickly identify abnormal conditions
display standardised methods in use
communicate performance measures
display elements critical to safe and effective operations
provide feedback to/from team members, supervisors and managers
eliminate the need for more meetings

Page | 37
See Section 3.6 Information Centre Meetings for more ideas on Visual Management.
3.7.1 Deployment
Each of the following steps should be done by the work team who use the site, area or
space, as they are the best judges of how their work area should be organised.
Sort:
Eliminate unnecessary items

1 Sort:
7
8.
EA
/
ory
AR
ent
er
Inv
nsf
LL
CE
al
RY
teri
GOMa
uce
Tra
/
Red
ell er:
als
teri
ER
MB
NU
TE
G
TA
DA
R
TO
CA
G
D
LO
TA
RE
?
KEEP
DISCARD
RED TAG
DECIDE
In the sort phase we eliminate any unnecessary items from our work area. If we are
undecided about an item, or think someone else may need it, we put a red tag on it
indicating what it is, where it was found, by whom and when. This item is then moved to
a quarantine area for one month to see if anyone else could use it (a list of red tag items
is sent around the site to inform others what is in the quarantine area). After this it is
discarded.
Set:
In the set phase we design the overall layout of the site/work area/office to
accommodate in the safest most efficient way the items we still need to work with. In
Figure 19 the scaffold yard is clearly laid out and enables the status of scaffolding to be
seen at a glance. Similarly, the shadow boards in Figure 20 make it easy to see which
tools are on hand and which are missing
Page | 38
Figure 19 Clearly labelled scaffold yard
Figure 20 Shadow boards
Page | 39
Visual management techniques of sign posting, demarcation, shadow boards, labelling,

numbering and colour coding are all used to ensure our Set Phase is as clear as possible.
Shine:
In the shine phase we consider how to keep our work place in top condition initially this
may involve the deep clean and demarcation of a particular work site, or painting a
container storage area, or cleaning a stationary cupboard.
On an on-going basis this involves the mindset that the job or shift is not finished until
we have cleaned up.
Shine is not just about the tidy workplace though, we use cleaning as a form of inspection
checking that everything is present and that all of our tools and equipment are left in
good working order, ready for the next day.
Standardise:
The Standardise phase involves putting a standard around what we have achieved in the
first 3 Ss Sort, Set & Shine. This is documented with a photograph and displayed at the
workplace; in order that everyone coming into the workplace is reminded what the
workplace should look like and key elements within it (Figure 21).
Page | 40
Figure 21 Office minimum standard
Sustain
The final part of 5S is around sustaining results and what we have achieved with Sort,
Set, Shine & Standardise. In order to sustain our efforts, a value must be placed upon
them by the team and more importantly by the leaders in the organisation.
If our leaders are happy to wade through chaos in order to get to a job, then so will the
workers be. If our leaders see items out of standard, but pass by, others will start to
ignore them too. The leaders in the organisation are role models for the behaviour of the
tradesmen; they must recognise this and act upon it.
In order to sustain 5S and Visual Management, we set up a system of auditing going
out into the workplace, engaging with the team and asking some basic questions on the
5S status of an area. This is done by team leaders, superintendents, managers and senior
managers to send the message that 5S is an important aspect of the work.
Results of these audits (usually a mark out of 10) are monitored near the Information
Centres and fed back to the crews in a timely manner.
Once you have started the 5S, it is preferable to start the Sustain audit work as soon as
possible to prevent slipping back and also to demonstrate engagement of leadership in
the process.
Always allow the 5S to be done by the workers involved in the area if someone from
outside comes in to lay out their area the work will be sub-optimal and the workers will
feel no ownership for the work.
Recognise good work when it happens. Good examples of 5S or Visual Management can
be communicated in newsletters or recognised with a BBQ lunch or other such
acknowledgement.
Page | 41

Desired behaviours from the leaders on site include support for the technique and
recognition that what they walk past today becomes the standard for tomorrow.
Leadership and support is necessary from all of the management team to enable 5S and
Visual Management to take hold and be sustained in the construction environment.
Everyone involved in an area for 5S and Visual Management should receive training to
understand what the 5Ss and Visual Management are, and the purpose for them in their
workplace. Desired behaviours from the tradespeople include recognition of the value
that having a well set out work space provides, a sense of ownership over their work
space and a sense of pride in it.
A schedule should be constructed which devotes time to accomplishing each of the 5Ss
and Visual Management. It is important not to stop part way through a 5S
implementation. Reaching the Standardise and Sustain stages is the key to not faltering,
even for a basic 5S.
Sign posting materials, paint, fencing and shadow board materials are all needed in order
to implement 5S and Visual Management in a Construction Site.
Page | 42
3.7.3 Examples
Figure 22 shows before 5S and after 5S photos, resulting in a more organised workplace:
Before
After
Before
After
Before
After
22 Before 5S and after 5S photos
Figure 23 shows a spaghetti diagram of a site with just one entrance, which was reconfigured to have four entrances, reducing congestion and providing easier access to
work fronts. Figure 24 shows a mimic board used to plan and problem-solve work fronts
and Figure 25 shows a 5S standard for a container.
Page | 43
Figure 23 Re-configured traffic arrangements on a site
Figure 24 Mimic board
Figure 25 S5 standard for a container
Page | 44
3.7.4 Measurement
A good measure of the success of the 5S implementation is the number and frequency of
the audits done by leaders as well as the results from these audits

Construction is different will this really work here?
Yes! Every work place and organisation is different, but some fundamentals are the
same. We all need our work laid out in a way that is easy to access, clear to see and safely
organised. This works just as well in construction as anywhere else. Numerous sites in
the US and around the globe are currently adopting these practices with great results.
However, it does take focus and discipline from the management team in order to get
this done.
We have tried before and then slipped back why?
The most common reason for this is the lack of application of the fifth S Sustain, and
indeed its lack of early application. You do not need to wait for all of the first 4 Ss to be
complete to start your sustaining activity, both to track your progress and demonstrate a
commitment to the process.
Page | 45
3.8 Standardised work

Standardised Work increases productivity, quality and safety by having an agreed best
practice for doing a specific work task. It:
forms the foundation for Continuous Improvement and the involvement of the
workforce in Continuous Improvement
enables us to balance our processes and ensure no-one is overloaded or underutilised
is written by the team themselves to include a detailed description of the work; with
key safety, quality and knack points included
is valuable for training, with new workers being taken through the Standardised
Work Document to ensure that the task is clear and all safety, quality and knack
points are covered (knack points are small tricks of the trade that an experienced
person will have built up over the years)
is a work group based method of recording the safest, best quality and most efficient
way to do a particular job
Always involve the tradespeople in writing the document, it is not written by an engineer
and imposed upon the team, although engineers do have a sign off to ensure that any
engineering specifications are adhered to. Since the Standardised Work is written by the
team; it is owned by them and becomes a living document and the basis for Continuous
Improvement. Any improvements to the Standardised Work can be captured workers
have the mentality that I wrote it therefore I can improve it.
As with all things in LEAN, Go & See is a key part of Standardised Work. It cannot be
written from an office, but must be observed by the team out on the job.
Four Key Elements of Standardised Work (Figure 26)
The Standardised Work Chart is the front sheet of a Standardised Work, listing the steps
to be carried out within the process. This often has a layout diagram so that the
movement of tradespeople around the area can be mapped.
Work Element Sheets are the backing sheets. One Work Element Sheet is written for
every step in the Standardised Work Chart in order to explain the detail of the task.
A Work Balance Board is used when a crew works together on a task which has a number
of Standardised Works describing it. The Work Balance Board is used to visualise the
relative time the different Standardised Work activities take so that they can be balanced
across the crew.
The Standardised Work Audit carried out by leadership is critical to the sustainability and
use of Standardised Work.
3.8.1 Deployment
The first step in the process is to identify which key tasks will be the target of a
Standardised Work. These may be tasks that have historically had high HSE issues (e.g.
angle grinding work), quality issues (e.g. welding) or productivity issues (e.g. valve
installation).
Page | 46
Then for each piece of Standardised Work:
perform a Job Safety Assessment (JSA) on the task to be standardised
release a team leader to team up with the most experienced or best tradespeople on
this task and watch the process, firstly noting down the high level steps for the
Standardised Work Chart (front sheet)
have the team leader and tradespeople work slowly through each step of the process,
taking photos and noting down any key safety (from JSA or other input), quality and
knack points to make a series of Work Element Sheets describing the detail for each
step
take this first draft of the Standardised Work (written up by the team leader and
tradespeople) to all of the people involved in doing this job (across crews or shifts) so
that everyone may have their input into it
once an agreed way has been established, have the tradespeople time themselves
doing the task as set out in the Standardised Work. A time is taken for each of the
Work Elements Sheets and a total time for the complete Standardised Work is arrived
at.
as times are put against each Work Element, it should be described as Value Added
(VA) to the customer, or Non Value Added (NVA or waste). VA is marked as green and
NVA as red on the Standardised Work Chart. This is reviewed to minimise the NVA.
when the Standardised Work is complete, have each crew sign off on this to ensure
everyone is working to the same Standard
have the engineer/safety/quality officer sign off on the work to ensure that it meets
any technical/safety specifications
If this Standardised Work is part of a number which all go together to make one
activity, use the Work Balance Board to balance the work across the crew
use Standardised Work for training, auditing and as the basis for Continuous
Improvement
Page | 47
Standardised Work Audit Sheet

Process
Level
Sign off
Area
Manager
Person
Team Lead
Audit questions
OK / NOK
Date
Comment
1 Is Standard Work available for this job
Does the person know where the standard work

2 is?
Has the person been trained using the standard
3 work?
Can the person describe the order of the job

4 elements involved in the task?
Watch the person performing the task - do they

5 follow the standard order of work elements
Watch the person performing the task - do they

6 follow the detail of the work elements?
Can the person describe the safety and quality

7 critical aspects of the task?
Are any trials going on to the standard work and

8 is the person aware of these?
Does the person have any ideas for

9 improvement to their standard work?
Are there any outstanding actions from previous

10 audits?
Score out of 10
Improvement items to feedback at end of audit Resp
Sign off to accept Done
Standardised
Work Audit
Standardised
Work Chart
Work Balance Board
Time in Min
Takt Time Line
40
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
1
Work Balance
Board
Number of Standard
Work
Work Element
Sheet
Figure 26 Four key elements of Standardised Work
Page | 48

Minimum standards for deployment require that:
everyone involved in a task for Standardised Work receives training to understand

what the Standardised Work is and its purpose in their workplace
Standardised Work does take resources in order to deliver, so it is important to use it

on the high priority tasks within the site
tradespeople write the Standardised Work in order to give them ownership and the
ability to improve
an audit system is in place to ensure the value placed upon Standardised Work by the
management team is clear and the work is sustained.
The following resources are required for deployment:
initial training sessions are necessary for all the workers involved
a schedule is constructed which devotes time to accomplishing each of the

Standardised Work tasks
agreed templates for Standardised Work (the Standardised Work Chart, Work
Element Sheet and Standardised Work Audit) are available.
Leadership, support and auditing are necessary from all of the management team to
enable Standardised Work to take hold, be sustained, and lead to Continuous
Improvement in the construction environment. Desired behaviours from the leaders on
site include support for the technique and an understanding of the value in capturing
best practice in the form of Standardised Work holds.
Desired behaviours from the tradespeople include a willingness to take part in the
writing of Standardised Work and its improvement thereafter. The value of capturing
their experience and sharing techniques to do a job should be recognised.
3.8.3 Examples of Standardised Work

Standardised Work for Safety:
As part of a Standardised Work exercise, a training rig was built to enable ideas for
improvement to Standardised Work to be tested off line (Figure 27). This resulted in a
much improved ergonomic process for the tradespeople:
Figure 27 HSEQ award winning training rig
Page | 49
Standardised Work for Quality:

As part of a fabrication Standardised Work (Figure 28), key quality points (marked with a
Q) were highlighted on a Work Element Sheet which led to improved quality output.
Standardised Work for Productivity:
As part of an upgrade Standardised Work, trials were done to refine the Standardised
Work and eliminate waste in order to improve productivity by 400% (Figure 29).
Page | 50
Super Structure Conversion

Platform Simulator
Figure 28 Super structure conversion platform simulator
Page | 51
Figure 29 Fabrication Standardised Work
Page | 52
3.8.4 Measurement
A good measure for the success of the Standardised Work implementation is the number
of Standardised Work tasks documented and the improvement in safety, quality and
productivity of those.
Another measure is the number and frequency of the audits done by leaders as well as
the results from these audits
Page | 53
3.9 Continuous improvement (CI)

Continuous Improvement in all its forms is done with the aim of improving safety,
quality and productivity on site.
In our Toyota example, workers on the line generate over 1 million improvement ideas
per year. Most are less than $2 to implement. Most save more than $100.
In addition to the returns from each small Operational Continuous Improvement, LEAN
seeks to develop the people themselves. The more someone experiments, the more they
will learn and the better they will become at Continuous Improvement. Continuous
Improvement is an activity that must be done by the crews, team leaders and
superintendents themselves. In this way they will own the process and start to see
opportunities more clearly. Engineers will also have Continuous Improvement targets
which they will be monitored against.
Continuous Improvement (CI) in LEAN has its roots in the Deming cycle of Plan Do Check
Act (PDCA) and we can see this applied at the operational, tactical and strategic levels
(Figures 30,31).
People
involved
Continuous Improvement
Strategic
Managers
Engineers
Tactical
Tradesmen Operational
24
Hrs
~1
Week
~ 3+
Months
Timescale
Figure 30 Continuous Improvement
Operational Continuous Improvement

Operational Continuous Improvement involves small changes made daily by the people
doing the work, to improve safety, quality and productivity. Viewed alone each change
may only make a small improvement but the impact can be enormous when the whole
site makes an improvement once a day, once a week or once a months.
Page | 54
Tactical Continuous Improvement

Tactical Continuous Improvement is a concentrated breakthrough workshop, instigated
by the crews themselves when they require help with a solution to a problem, or when
they are falling behind in their Continuous Improvement targets.
External help takes the form of a crew leader or tradesman from another crew and an
engineer, invited to work with the crew for a concentrated period of time, usually a week
to ten days, in order to investigate the problem or take a fresh look at the process.
Strategic Continuous Improvement
Strategic Continuous Improvement is a large scale change affecting two or more areas.
This could be the re-layout of a site, using a new revolutionary method for scaffolding or
changing from stick built to modular construction.
3.9.1 Deployment
Standardisation
Continuous Improvement depends on Standardisation be this 5S standards for layout
or Standardised Work Sheets for the task itself. For instance, if different tradespeople do
the same job in different ways, an improvement idea from one of them may affect his
method positively, but may have no effect, or a negative effect on anothers method.
Only when we have these standards in place can we begin to measure the process and
achieve the foundation for Continuous Improvement. If no standards exist for a task or
area the first job must be to put in place these standards.
Executive Direction
It is usual to set an Executive Direction for Continuous Improvement; this is set
depending upon the stage in the lifecycle we are at in a build. For example:
first 6 months safety on the job
second 6 months quality improvements
third 6 months productivity improvements
fourth 6 months design improvements for the next job.

Targets are cascaded up to the crews so that each crew will have a target for number of
Continuous Improvement ideas and a measure of their effectiveness.
Superintendent targets are a sum of their crews and manager targets a sum of their
superintendents.
Operational Continuous Improvement

The process of Operational Continuous Improvement is as follows:
All members of staff have initial training in Standardised Work, 5S and CI. After this,
ongoing training should be provided to further improve skills and incorporate new
employees.
Page | 55
If a tradesman has an idea about improving their process they discuss it with their
crew leader and crew.
The tradesperson is given time/covered by the crew leader while they trial their idea.
The crew leader helps them to structure this as an experiment, using the PDCA cycle,
so they can objectively measure if the trial is good or no good.
Act
Plan
Check
Do
The tradesperson evaluates the trial, good or bad they are congratulated what did
they learn? It is particularly important to congratulate failures, because a
tradesperson who is afraid to fail will be afraid to try.
If the outcome is good, the Standardised Work or 5S standard is updated to reflect the
new idea and all personnel are trained.
Many practices exist to facilitate Operational Continuous Improvement in a LEAN
organisation:
o
monthly CI Action Meetings where the work is stopped for 30 minutes to allow
crews time for CI
o
a CI Support Team may exist made up of 4-5 people who are able to provide
practical support to CI activities around the organisation (e.g. a team leader, team
members and maintenance personnel)
o
CI competitions and recognition for the best ideas
o
CI targets against which all teams are monitored.
Tactical Continuous Improvement

The process of Tactical Continuous Improvement is as follows:
If a crew leader feels that his crew is falling behind with their Kaizen targets he may
request a Tactical CI Workshop to address a specific problem or help in general.
Figure 31 Benefits of Continuous Improvement
Page | 56
The manager of the area will allocate support from other crew leaders,
superintendents, tradespeople or engineers to act as Fresh Eyes in a week long Go &
See with the crew.
The majority of the week is spent on the job, with the crew discussing, agreeing and
trialling new ideas for improvement, again using the PDCA cycle.
The aim is to get most of the new ideas implemented within the week, so this is seen
as a step change for the crew.
Strategic Continuous Improvement

The process of Strategic Continuous Improvement is a radical change and as such is dealt
with as any large new process would be:
a business case or study is done
risk analysis and FMEA (Failure Mode and Effects Analysis) are used to assess the
change
Master Schedule and Detail Schedules for the change are put in place
safety assessments are done
Standardised Work/5S may need to have new standards across a range of areas
training plans are put in place to roll out the new work methods.
Restrictions on Continuous Improvement

The philosophy behind CI is to engage the whole workforce in putting forward
improvement ideas, being able to trial these ideas and then being able to implement
them, but this is done within their sphere of control.
The boundaries of this sphere may be set by customer specifications, regulations,
company guidelines or engineering standards:
Boundary
Boundary
This is not to say that ideas outside of these boundaries may not be put forward, but
these will need external testing or verification and the focus is on what the crew can
achieve for themselves.

Everyone involved in Continuous Improvement should receive training to understand
what this is and what is expected of them at the work site.
Continuous improvement should be structured as a series of experiments using the PDCA
cycle.
Page | 57
Ideas which are implemented are not just good ideas they are good ideas which are
converted into standards, trained, audited and sustained to provide a basis for the next
Continuous Improvement idea.
A Continuous Improvement vision should be set which takes into account the need for
standards first then Continuous Improvement, but does set some Executive Direction
and Targets for each of the crews.
Within the crews, Continuous Improvement should be discussed at the pre-start
Information Centre Meetings. Targets (and performance against them) should be clear.
3.9.3 Examples of Continuous Improvement

Many Continuous Improvement examples are born out of frustration:
4. The board is
moved and
improved and the 5S
Std is updated
3. The crew leader

helps the tradesman
conduct a trial and
this results in an
additional idea for a
further tool to be
added to the board
1. Frustration occurs
when tools are not
located correctly
2. The tradesman
explains his idea to
his crew leader
We look for fixes which can be done by the crews themselves:
Page | 58
1. Map the current process

for getting parts to
warehouse picking area
2. Use crew ideas to replan

and reduce distance
travelled
3. As part of the process old

racking has been
redesigned...
4. ...to give new better

visual control and picking
time
3.9.4 Measurement
A good measure for the success of the Continuous Improvement program is the number
of people trained in the Continuous Improvement and the number of Continuous
Improvement ideas implemented.
The overall success will be measured in terms of safety, quality and productivity
improvements, which should be visible as a results metric versus the Continuous
Improvement target given to each of the crews.

I cant do Continuous Improvement as all of my issues are caused by other people.
It is often the case that one crews work will impact upon the work of another, or that we
lose time for reasons beyond our control. Larges issues may exist which should be tackled
at a higher level. However, we must concentrate on with each of the crews can they do
within their own crew. Even if Improvements are only small initially, these small wins
start to build momentum.
One organisation was initially convinced they could do nothing about the weather, if it
rained it rained. However, when they really considered this there was an enormous
amount they could do with respect to wet weather planning which gave them much
improved results.
It is making this switch in peoples heads to say that there is something I can do about
everything to improve it I just need to look for it.
Page | 59
3.10 Built in quality and error proofing

One of the pillars of LEAN is Built in Quality, which is used to avoid the waste of rework
and the cost of repairs to a job. In a LEAN organisation a worker has three
responsibilities:
do not accept poor quality
do not make poor quality
do not pass on poor quality

The 1-10-100 rule states that as a product or service moves through the construction
system, the cost of correcting an error multiplies by 10. People make fewer mistakes if
they are supported by proper training and by a construction system based on the
principle that errors can be avoided.
A robust and capable design

In order to achieve Built in Quality, engineering standards for design must be clear and
robust. Contractors should be involved at an early stage and lessons learnt from previous
builds identified at a detailed enough level to be meaningful to design (see Section 3.2
Target Value Design).
Good quality incoming parts
Work is done with key suppliers on their processes and inspection procedures so that
parts coming on to the site are good quality.
Incoming Inspection is also placed at the receiving dock of the site to inspect parts
arriving versus the drawing specifications, or boundary samples (see later).
The ability to tell what is a good Job
Tradespeople must be able to see if they have done a good job on site. This enables SelfChecking the first step to producing a Quality job on site. In order to achieve this we
use the following means:
standardised work (Section 3.8)
boundary samples
error proofing
Instead of showing Good and Bad conditions, boundary samples are physical parts which
show the boundary of where Good changes to Bad. A boundary sample will show the
worst possible condition which is still acceptable any worse than this is No Good.
Page | 60
Situation 2:
Situation 1:
Example of a
bad fault in a
weld
Is this fault acceptable?

Unclear as it is less
than the bad example
Example of a
boundary fault
in a weld ie
this bad but no
worse is
acceptable
Is this fault
acceptable?
Clearly no.
Error proofing involves incorporating into products or processes something that

physically or procedurally prevents things from being done incorrectly by:
eliminating the cause of an error at the source;
preventing an error from being made;
detecting an error as it is made, or soon after it has been made, but before it reaches
the next operation.
Lean tries to focus on finding an

error at source as well as
detection of the defect
The cost to repair is less the
earlier the defect is caught
The ability to stop working if something is NOK

In LEAN we call this Stop Call Wait. If something is found or made incorrectly the
tradesperson stops work, calls the supervisor and waits. The situation is assessed and a
decision made on corrective action. This enables the supervisor to keep a log of quality
issues which can then be ranked in priority and tackled in order or concern. This may
result in redesign, amendment of Standardised Work, an error proofing device being
made or retraining of individuals.
A Word of Caution before Implementing Built in Quality and Just In Time
Once stability is achieved within the construction system, the LEAN Tools of Built in
Quality and Just in Time start to put pressure on the system by introducing techniques
which ask us to respond more quickly Built in Quality asks us to respond to concerns
more quickly and Just in Time asks us to respond to the Customer more quickly.
Our ability to implement either of these systems is very much dependent upon how
stable we are and how well we have implemented the previous LEAN tools:
Page | 61
Target Value Design

Robust Eng Stds
Too many
Concerns
Standardised Work
& 5S / Visual Mgmnt
Stop Call Wait
Built in Quality aims

for immediate
response to concerns
Inventory
Chaotic
Construction
Just In Time
JIT aims for

immediate response
to the customer
Information
Centres
Last Planner &
Pull Planning
As we travel through our LEAN journey, we build a more stable, more capable
construction system. We build confidence and expertise within our people and our
problem solving skills increase.
If we try to implement these advanced tools and techniques of Built in Quality
(particularly Stop, Call, Wait) and Just in Time earlier, we will be unable to cope with
them, as we do not have some of the fundamentals in place.
3.10.1
Deployment
Ideally, Quality should be built in at the start of a project and as a result of previous
lessons learnt. Once on site, the following should happen to identify causes of quality
problems:
All members of staff have an initial training on Standardised Work, 5S, Built in Quality
and Error Proofing.
A tradesperson sees a quality issue; stops work to call the supervisor and then waits
for his arrival.
The two discuss the issue and determine root cause (the 5 Whys may be used). Root
causes are much easier to determine, when you can see the issue in its raw state,
when it has only just happened (easier to see the smoking gun)
The immediate action is decided upon and the supervisor notes the quality issue.
Page | 62
At the end of the week, the supervisor reviews the quality issues and chooses one to
work on based on the severity of the issue, time lost or frequency of occurrences.
The supervisor then forms a small team with the tradespeople who raised the issue
and they refresh on the hierarchy of controls which they can put in place.
In a Non LEAN Organisation emphasis is often put on inspection and detection of

defects after the fact. In LEAN we try to eliminate or prevent defects (Figure 32).
An idea is thought of and trials proceed just as in Standardised Work. The

tradesperson is given time/covered by the crew leader while they trial their Error
Proofing idea. The crew leader helps them to structure this as an experiment, using
the PDCA cycle, so they can objectively measure if the trial is good or no good.
Lean Organisations
Non Lean Organisations
Safety Issues
3%
60%
Elimination
7%
Prevention
90%
Detection
Elimination
Machine
Breakdowns
Assembly
30%
Prevention
10%
Detection
Figure 32 Elimination of errors
Page | 63
The tradesperson evaluates the trial to find out what was learnt, good or bad they are
congratulated.
If the outcome is good, the Standardised Work or 5S standard is updated to reflect the
new error proofing technique/design and all personnel are trained.
3.10.2
Pre-requisites for deployment
Everyone involved Built in Quality and Error Proofing should receive training to
understand what this is and what is expected of them at the work site.
Time needs to be set aside on a weekly or monthly basis for Problem Solving on Quality
issues and Error Proofing as a result of issues seen. Examples of Error Proofing should be
available for all to see, as these aid understanding and spark additional ideas for
improvement.
A log of Quality issues should be kept by each supervisor for their area and the most
urgent issue tackled once per week or once per month (depending upon capability) to be
tackled.
Although we deal here mainly with Quality during the actual construction process, it is
vital to remember that this starts probably years before this with:
design for Built in Quality
detailed lessons learnt incorporated into design
selection of suppliers and review of their quality systems
writing of Standardised Work so tradespeople can be clear on what is a good job.
3.10.3
Examples of built in quality and error proofing
Zero defects are achieved because errors do not turn into defects ...if feedback and
action take place at the error stage
Shigeo Shingo 1986
Detection
Elimination
Prevention
Page | 64
Level 1 Detection (Visual Management)

At its most basic Error Proofing can be a visual indication that something is in the right
place (overlapping with visual management):
Filling device color

coded
50
60 70 80
40
30
110
120
Witness Mark showing

bolt or nut is tight
Witness Mark showing

bolt or nut is Loose
90
100
20
10
Fill Point Color

Coded
130
Temp C140
Smith & Son
Wiltshire
Clear visual
management on gauges
of equipment ensure
correct settings
If 20 bolts are needed to

do a job, sort only 20 so
if any are left over you
have missed these
COOLANT
TEMPERATURE
Level 1 Detection (Warning)

The next level up from this is detection via some form of sensor which then alerts the
tradesperson to the error, as in the warning lights on a car dashboard.
Page | 65
In more advanced LEAN organisations, warnings are sounded when work stops due to a
quality defect or equipment breakdown, so that supervisors can respond to this:
Green Line colour indicates work

is running smoothly no problems
Amber Line colour indicates

a problem and yellow block
identifies process area
Red Line colour and block, signal that

work has stopped and the process
area which stopped the work.
Pictures Supplied Courtesy of Macdonald Humphrey
(Automation) Ltd
Level 2 Prevention (Control)

When we move to prevention the sensor actually stops the equipment, preventing the
error from turning into a defect:
Construction site elevator monitor, stops the

elevator if sensors in the doors detect a
blockage
If you have not removed your card

from the machine, cash will not be
dispensed
Page | 66
Level 2 Prevention (Jigs and Fixtures)

Jigs and fixtures can be made in order to enable the fitting of one component to another
in only the correct way.
A jig holds I section to

enable welding to
specification
A cover prevents
damage to a car in a
garage
Level 3 Elimination (Design)

Design is the best way to ensure elimination of defects via Error Proofing, with many
examples in everyday life:
Design prevents the fuel

cap from being
misplaced
Manhole covers are

round so they do not fall
through the hole
This tray is too large to

fit in a bin, so only the
food is thrown away
A memory stick will only

fit one way
Level 3 Elimination (Substitution/Elimination)

Again we seek to eliminate even the possibility of a defect:
If welding defects are an issue, change the welding type or replace welded with
bolted or glued sections.
If many different gaskets and pumps are an issue, rationalise the design to one
or two different types (this may cost slightly more in terms of pumps and
gaskets, but will save time and money on construction quality).
If many different bolts are an issue, commonise.
Page | 67
3.10.4
Measurement
A good measure for the success of the Built in Quality and Error Proofing program is the
number of people trained in this and the number of Error Proofing ideas implemented.
Overall success will be measured in terms of quality on site and the levels of rework
experienced.
3.10.5
Frequently asked questions
We cant afford the time to stop every time we have an issue.

Often a site is plagued by quality problems and work would indeed grind to a halt if this
happened. Also, on some sites, the worker to supervisor ratio is so large as to make this
unfeasible.
In this situation the following steps would be useful:
address the worker to supervisor ratio, more than 1:12 will not allow Stop, Call, Wait
ask workers to record their quality issues at the morning Information Centres and
choose the top issue to tackle every month
do a Go & See and 5 Whys to determine the root cause of the issue
implement Eliminate, Prevent, Detect methods to address this.

As quality on site comes progressively under control and the work group ratio is
addressed, the Stop Call Wait activity can be introduced to enhance quality and problem
solving capability enormously.
Page | 68
3.11 Just in Time (JIT)

Just in Time means producing or providing only what is needed, when it is needed, and
in the amount needed no more, no less. It is the right part, at the right time, in the
right place. Just in Time has become shorthand for the LEAN Material Management
functions, encompassing Push versus Pull Systems for inventory delivery.
JIT is a Pull System that responds to actual customer demand. In essence, products are
pulled from the JIT system. JIT only commits the resources needed to meet the
customers needs. It leads to reduced inventories (and space), higher human productivity,
better equipment productivity and utilisation, shorter lead times, fewer errors, and
higher morale, as follows:
Part costs low scrap cost, low inventory cost
Quality fast detection and corrections, and higher quality of parts purchased
Design fast response to engineering change
Administrative efficiency fewer suppliers, minimal expediting and simple

communication and receiving
Productivity reduced rework, reduced inspection and reduced parts delay.

Understanding Flow
If you can imagine one I section or pump or gasket and imagine how this gets specified,
scheduled, ordered, made, stored, delivered, stored, moved, stored again and finally used,
you will start to understand the flow of materials involved in Construction.
Value Stream Mapping is an excellent way to visualise this stream of events.
When thinking about flow of materials to and through a Construction site we might
imagine a river which currently meanders around, going through various stagnant pools
of inventory until eventually it reaches its end.
Improving flow is about lining up the essential steps in the process and removing the
waste - reducing inventory, wasted transportation, wasted time and motion so that
everything flows quickly and smoothly to its end state (see Section 3.1 Eliminating
Waste).
When we do this we benefit from improved lead times and lower inventory holding cost,
but we also expose problems which we may have hidden with excess inventory.
Page | 69
We then rely upon the problem solving capabilities that the previous LEAN techniques
have helped us develop in order to quickly address these issues.
Inventory Control
Once we can visualise the Value Stream we can start to take control over it (Figure 33).
This includes robust inventory control methods to ensure that material needed for work
fronts is:
ordered
delivered on site (or to controlled off-site laydown areas with good 5S)
Quality Assurance approved
present and in a known location on site (controlled laydown areas with good 5S and
physically confirmed by Materials Management personnel)
convenient to the work fronts (e.g. in staging areas).
Daily Staging Area:

Tomorrows work
Visual Confirmation
of parts
Daily Staging Area:

Todays work
5Sd Laydown Area
Work Front:
Figure 33 Inventory Control
This is done at
Master Schedule BOM/MRP planning stages
Pull planning BOM/MRP planning stages
6 week look ahead
Weekly Work Plan
Daily Schedule
Clearly this relies upon a robust detailed Bill of Materials (BOM) being available for
ordering and scheduling deliveries.
Page | 70
KANBAN
Ticket
After physical confirmation of

inventory levels, visual tracking
and resolution of outages is key.
Shortages have to be identified,
controlled and resolved quickly
to prevent stoppages.
A visual shortage board helps to
facilitate this.
Route
Cycle
Shortage
Date &
Time
Stock
Remaining
(Hrs)
Expected
Delivery
Time
Actual
Delivery
Time
MP&L
Owner
JCI
11/11
09:30
6 hrs
13:30
12:45
J Bloggs
Push versus Pull Systems

LEAN uses both Push and Pull Systems depending upon a number of factors around the
levelling of construction workload, the predictability of supply, the proximity of suppliers
and their ability to react to small schedule changes (Figure 34).
In a Push (traditional) System, material is ordered to a pre-determined schedule to arrive
on site before the work is carried out. If the stock is not used, the supplier continues to
deliver to schedule.
In a Pull System, work is carried out using materials from a supermarket style laydown
area which is then replenished by the supplier. If the stock is not used, the supplier does
not make more.
PUSH SYSTEM
FORECAST BASED ORDER
3+ month
Order
PARTS
POINT
OF FIT
PULL SYSTEM
REPLENISHMENT BASED ORDER
Calc/order/build/deliver
6 week order
Weekly
confirmation
REPLENISHMENT
ORDERING
BUILD SEQUENCE
ORDER (PRE-BUILD):
POPULATE STAGING AREA
SEQUENCED DELIVERY
Before Usage
TIME
After Usage
Figure 34 Push versus Pull Systems
Page | 71
LEAN normally uses a combination of Push and Pull Systems. A traditional Push System is
used for capacity planning as well as 12 month, 6 month and 3 month schedules. Then,
depending upon the materials, Push scheduling will continue, or Pull replenishment
ordering will occur.
For example, if we know we will use 20,000 of the most common gaskets in our build,
spaced fairly evenly across two years, we may decide to keep 800 (four weeks worth) in a
supermarket and have our supplier replenish this on a weekly basis.
Replenishment takes place either by the supplier visiting the site to refill bins/pallets of
the gaskets or by a physical or electronic reorder card (kanban) being posted to the
supplier.
3.11.1
Deployment
To enable Just in Time we create a Plan for Every Part. This is a large database or spread
sheet where each different part number is listed. The following are inputs needed to
establish the Plan for Every Part:
Bill of Material (BOM) information gathered from the design
where parts are being used and by which contractors
Supplier contact details and lead times to manufacture and ship
Container information such as number per shipping unit, type of shipping unit
demand information.
Based upon these inputs we can determine:
if the part will use a Push or Pull System approach
if a Pull System is to be used a re-order calculation can be made to determine the

minimum/maximum levels of stock to be held on site
how many re-order cards (or kanbans) to be made
what information necessary for labelling and bar coding will be stored and how labels
printed from the system/sent to the supplier from this system will be created
how location addresses will be allocated (e.g. off site, warehouse, laydown area) and
the size of individual laydown areas
method of movement on site can to enable planning of cranes/equipment to take

place
call points for posting of re-order cards if these are used.

Once the Plan for every Part is in place, the outputs of this are tracked using an
Information Centre to ensure all outputs, parts and plans are on target. We can then use
Continuous Improvement to challenge what we have and reduce batch sizes to create a
leaner logistics system.
3.11.2
Prerequisites for deployment
Everyone within Materials Management should receive training to understand what Just
in Time is and the purpose for it in their workplace. Training sessions for suppliers of
materials should also be undertaken.
For Just in Time to work, a robust and detailed Bill of Materials must be in existence.
Page | 72
An audit system is also necessary for Materials Management to check the actual state of
the inventory at site. In order for this to be done efficiently, 5S must be fully
implemented at all of the laydown and warehousing areas.
Often organisations try to implement Just in Time first in their LEAN journey. This is not
advisable as it is one of the more difficult techniques. JIT builds upon the base of 5S,
Standardised Work, Problem Solving and Continuous Improvement developed in the
other tools (see Section 3.10 Built in Quality).
3.11.3
Measurement
Good measures of the successful implementation of Just in Time include space saved in
laydown areas and reduced numbers of part outages.
Another measure is the number of parts/inventory audits done by Materials
Management and the results of these audits in terms of estimated quantity versus
actual quantity.
3.11.4
Frequently asked questions
What if my suppliers dont deliver on time?

Just in Time is about reducing inventory on site, but this is on the back of a reliable BOM,
supplier and timing plan. If any one of these is out you may need to hold more inventory
to cover this.
In our gasket example, if the supplier was unreliable and would only deliver every other
month, then we would need to hold three months of stock instead of four weeks. This
would be a controlled decision on our part and still incorporated into the Plan for Every
Part System, including the redesign of the gasket holding area to accommodate this.
Work would then commence work with this supplier to understand the causes of their
supply issues and to put in solutions in place.
Page | 73
4 Helpful Resources
4.1 A3 Reports
In very simple terms, an A3 report is a story shown on an A3 piece of paper. This can be
a problem-solving report, a proposal report or a status report. The format of each of
these reports is standardised to a degree, but the author(s) may modify the report to best
meet their needs. The goal is a report that can be reviewed and understood by an outside
party in less than 5 minutes. The information on an A3 should be reflected in pictures,
graphs, tables or drawings wherever possible. Lots of text does not aid in quickly
understanding the story. If you must use text, use bullet points rather than sentences.
Hand drawn A3s are the best way to start. Eventually, displaying the story on a computer
generated (typically Word, Excel or PowerPoint) form makes it easier to maintain a library
of A3s and ensures consistency, however the thought process and team work is just as
well represented by hand drawn sketches.
Deployment Process Steps (for a problem solving A3):
Step One - Background - Identify a problem or need.
Step Two - Current Situation - Observe the work process first hand, document
observations, observe source of problems. Quantify the magnitude of a problem with
metrics if possible. Diagrams, charts, sketches, verbiage are appropriate; whatever is
the most efficient way of describing the current state.
Step Three - Root Cause Analysis - With a good understanding of how the process
currently works, it is time to figure out what the root causes are for the errors or
inefficiencies. To accomplish this, make a list of the main problems and conduct a
Five Why to find the root cause of those issues. The Final Why creates a checklist for
what is needed later in the Implementation Plan.
Step Four - Target Condition - Now that the current work is understood, think about a
better way that work could be done. How will the work get done with
countermeasures in place? Insert a diagram or verbiage illustrating how work will
take place. Note or list any countermeasures that will address the root causes
identified earlier. Predict the expected improvement.
Step Five - Implementation - List the actions which must be done in order to realise
the Target Condition, along with an individual responsible for the action and a due
date. Add any other items that are relevant to the implementation.
Step Six - Follow Up - Note the plan to measure the effectiveness of the proposed
change, indicate when it will be measured and by whom. After follow up, record
results of the implementation with the date recorded. This will check the work and
determine if adjustments need to be made to the plan.
Tools and Templates
Sobek, D & Smalley, A, 2008, Understanding A3 Thinking: A Critical Component of Toyotas
PDCA Management System, CRC Press New York.
Shook, J, 2008, Managing to Learn: Using the A3 management process to solve problems,
gain agreement, mentor and lead, Lean Enterprises Institute Inc., USA.
Liker, J & Meier, D, 2006, The Toyota Way Fieldbook. A Practical Guide for Implementing
Toyotas 4Ps, Chapter 18, McGraw Hill, USA
Page | 74
4.2 Recommended reading

Introduction to LEAN
Liker, J, 2003, The Toyota Way: 14 Management Principles from the World's Greatest
Manufacturer, McGraw-Hill, USA.
Miller, W and Schenk, V, 2004, All I Need to Know About Manufacturing, I Learned in Joe's
Garage: World Class Manufacturing Made Simple, Bayrock Press.
Womack, J and Jones, D, 1996, Lean thinking: banish waste and create wealth in your
corporation, Simon & Schuster.
LEAN theory
Liker J, & Franz, J, 2011, The Toyota Way to Continuous Improvement: Linking Strategy and
Operational Excellence to Achieve Superior Performance, McGraw-Hill, USA.
Goldratt, E, 1990, What is this thing called theory of constraints and how should it be
implemented?, North River Press.
Goldratt, E, 2000, Necessary but not Sufficient: A Theory of Constraints Business Novel,
North River Press.
Goldratt, E & Cox, J, 1992, The Goal, North River Press.
Morgan, J and Liker, J, 2006, The Toyota Product Development System - Integrating People,
Process and Technology, Productivity Press, New York.
Spear, S, 2009, Chasing the Rabbit - How Market Leaders Outdistance the Competition and
How Great Companies Can Catch Up and Win, McGraw-Hill, USA.
Womack, J & Jones, D, 1991, The Machine That Changed the World: The Story of Lean
Production, Harper Perennial.
LEAN management
Bryson, B, 2010, The Owner's Dilemma: Driving Success and Innovation in the Design and
Construction Industry, Greenway Communications.
Lencioni, P, 2002, The Five Dysfunctions of a Team: A Leadership Fable, John Wiley & Sons,
Inc.
Patterson, K, Grenny, J, McMillan, R & Switzler, A, 2002, Crucial Conversations: Tools for
Talking for when Stakes are High, McGraw-Hill, USA.
LEAN tools
Cooper, R & Slagmulder, R, 1997, Target Costing and Value Engineering, Productivity
Press.
Page | 75
Dennis, P, 2006, Getting the Right Things Done: A leader's guide to Planning and
Execution, Lean Enterprises Institute Inc., USA
Goldratt, E, 1997, Critical Chain, North River Press.
Kennedy, M, 2003, Product Development for the Lean Enterprise: Why Toyota's System Is
Four Times More Productive and How You Can Implement It, Oaklea Press.
Kennedy, M, 2008, Ready, Set, Dominate: Implement Toyota's Set-Based Learning for
Developing Products and Nobody Can Catch You, Oaklea Press.
Kymmell, W, 2008, Building Information Modelling Planning and Managing Construction
Projects with 4D CAD and Simulations, McGraw Hill.
Liker, J, 2003 The Toyota Way, 14 Management Principles from the World's Greatest
Manufacturer (Principle 7: Use Visual Control So No Problems Are Hidden), McGraw-Hill,
USA.
Liker, J and Meier, D, 2006, The Toyota Way Fieldbook: A Practical Guide to Implementing
Toyota's 4Ps, McGraw-Hill.
Macomber, H & Barberio, J, 2007, Target-Value Design: Nine Foundational Practices for
Delivering Surprising Client Value, Lean Project Consulting, Inc.
Mann, DW, 2005, Creating a Lean Culture: Tools to Sustain Lean Conversions, Productivity
Press.
Ohno, T, 1988, Toyota Production System: Beyond Large Scale Production, Productivity
Press, New York.
Productivity Press Development Team, 1996, 5S for Operators, Productivity Press, New
York
Productivity Press Development Team, 2002, Standard Work for the Shopfloor,
Productivity Press, USA.
Productivity Press Development Team, 2003, Identifying Waste on the Shopfloor,
Productivity Press, New York.
Rother, M & Shook, J, 2003, Learning to See, Lean Enterprise Institute Inc., USA (the
original and best Value Stream Mapping book).
Rother, M, & Shook, J, 1999, Learning to See: Value Stream Mapping to Create Value and
Eliminate Muda, The Lean Enterprise Institute Inc.
Shingo, S, 1986, Zero Quality Control: Source Inspection and the Poke Yoke System,
Productivity Press, USA.
Shook, J, 2008, Managing to Learn: Using the A3 Management Process to Solve Problems,
Gain Agreement, Mentor and Lead, Lean Enterprises Institute Inc., USA.
Page | 76
Smith, D, 2000, The Measurement Nightmare: How the Theory of Constraints Can Resolve
Conflicting Strategies, Policies and Measures, St Lucie Press.
Spear, SJ, 2004, Learning to Lead at Toyota, Harvard Business Review, May 2004.
Spear, S & Bowen, K, 1999, Decoding the DNA of the Toyota Production System, Business
Review, Sept 1999
..
Page | 77
Appendix 1 - LEAN Construction Assessment Framework

Level
Recommended Practice
1 Aware
2 Ad-hoc
Few participants
understand waste or
know how to identify
and eliminate it.
Some awareness of CI
Types of waste
sometimes taught to
team members. Some
wastes and process
walks conducted.
Value determination
(who is customer)
understood
Some connection with
CI and improving
processes
Waste eliminated in
significant areas, and
stories spread about
LEAN processes
achieved.
New projects address
potential waste.
Processes in new
projects address,
uncover, and
eliminate waste.
Connects CI with
improving internal
processes
Waste not a topic of

meetings or reviews.
Waste is moved
around rather than
eliminated.
People are blamed for
defects, corrections,
high costs, and
systemic causes are
ignored.
Waste identified in
some areas and
among various
participants.
Waste sometimes a
topic of investigation
or discussion in
planning and review.
Each person takes

responsibility for
eliminating waste.
LEAN methods used
such as Waste Walks,
Value Stream
Mapping, 5-Whys and
5S in business
processes and work
areas.
What processes does the

project use for
eliminating waste?
Eliminating waste
(not just defects)
and
Continuous
Improvement (CI)
What does evidence

look like?
3 Localised
4 Integrated
Waste reduction is
ongoing part of work.
New and current
projects can
demonstrate waste
reduction and
elimination in various
areas.
Architects, engineers,
contractors, and subs
vigilant and skilled in
reducing and
eliminating waste.
Connects CI with all
process improvements
Architects, engineers,
contractors, and subs
vigilant and skilled in
reducing and
eliminating waste.
Operational and
Tactical CI is common
5 Best In Class
All participants
practice waste
elimination and
prevention in project
activities.
Savings and
efficiencies obvious
from ongoing and
integrated work to
eliminate waste.
Visitors regularly
remark on
exceptionally clean
and orderly sites.
Page | 78
Level
How does the project

use the Last Planner
System?
Last Planner System
What does evidence

look like?
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some limited
knowledge or practice
of Last Planner
System.
No regular education
in Last Planner System
in place.
Some team members

have participated in
Pull Planning sessions.
Team is aware of
requirements defined
in Pull Phase schedule
Last Planner System is
discussed and the
concept of Make Work
Ready and Weekly
Work Planning is
understood
Make Work Ready

Schedules and Weekly
Work Plans are the
focus of weekly work
planning meetings.
Huddles are held each
morning where WWPs
and task completion
are discussed.
Team has established
a goal for PPC.
Team actively plans to

improve PPC their
goal is 100%.
Team requires new
members to learn and
participate in LPS
All team members
prepare and submit
their WWP in a timely
fashion.
Contractors are
evaluated based on
their LPS performance
Some trade partners

may practice Last
Planner System, but
the traditional
command and
control approach is
standard practice on
the site.
21 day rolling
schedules are used
with little
commitment to
achieving dates on
them.
Team has Last Planner

forms available but do
not use them in
meetings.
Superintendents and
foremen talk about
LPS but do not
complete forms or
make commitments
Make Work Ready

Schedules are
discussed at meetings.
Team members have
identified Constraints
on the MWR schedule
and look for ways to
remove them.
Trade partners and
foremen have been
asked to prepare
Weekly Work Plans
PPC is calculated and
discussed
PPC charts are
displayed.
Constraint logs are
distributed and get
results.
Weekly Work Plans are
available to all team
members.
Someone is assigned
to compile an overall
project WWP.
Weekly Work Planning

meetings are
collaborative. There is
a facilitator but no
commander
Team members
debate the best way
to accomplish goals.
PPC and variances are
discussed.
Management asks
about PPC and
variances
Steadily increasing
PPC
Team and
management take
steps to learn from
and minimise
variances.
PPC and variances are
part of project
evaluation.
Page | 79
Level
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some knowledge or
practice of Pull
Planning. No regular
education on Pull
Planning in place.
Pull Planning used

occasionally, plans are
documented and
saved for future
reference.
Pull Planning is used

regularly to plan new
projects or phases of
projects.
Pull Planning is taught
to new architects,
engineers, contractors,
and subs if they are
not practicing it.
Pull Planning is
integrated in
designing and
building facilities.
All participants
practice Pull Planning
in their own
organisations.
Phased scheduling
approach to identify
major handoffs
Some trade partners

may practice Pull
Planning, but the
traditional Push
approach is the
standard practice.
Few plans or
schedules have been
developed in a
collaborative fashion
Pull Planning is
initiated by LEAN SME
or External Coach
when performed.
Schedule
improvement and
production efficiencies
from Pull Planning
apparent to those
participating in
specific projects
External coaching
used to support team
leaders
Pull Planning
integrates with other
project schedules and
plans
Internal coaching
done by team leaders
Savings and
efficiencies from Pull
Planning are
quantifiable.
Pull Planning is used

for planning all
activities not just
design and
construction
All team members
including
subcontractors require
planning and
commitments to be
based on a Pull Plan
session.
Management requires
Pull Planning to be
performed prior to
making commitments.
All trade foremen and
project managers
conduct Pull Planning
without assistance
from specialist or
coach.
Cost savings and
production efficiencies
from Pull Planning are
substantial.
How is Pull Planning

used on the project?
Pull Planning
What does evidence

look like?
Page | 80
Level
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Target budget set

after design
completion.
Target budget
developed during
design process but set
after design
completion
Target budget
developed for each
element cluster
Multi-functional
teams are responsible
for each cluster
Target budget clusters

supported by
enhanced estimate
detail.
All team members are
aware of progress
towards target cost
Value engineering and

cost reduction rework
cycles the primary
process for
maintaining budget
Design is evaluated for

constructability
Benchmarks are used
in setting initial target
budgets
Target budget
developed and set
early in design by
integrated team
Cost is a design
element considered
with others such as
through-put,
constructability,
safety, etc.
Target budget is set
prior to design and
tracked periodically
Visual controls in
place for team to track
cost status
Progress above or
below the target cost
is discussed at every
team meeting
Designers, builders,
and end users share
the responsibility for
assessing value and
for selecting how the
value is produced.
Real time cost updates
with design updates
Budget allocations are
moved freely across
clusters to meet
project target budget
A mechanism and
visual display is in
place to evaluate the
design against the
budget.
Scheduled ongoing
reviews track
achievement of
targets.
Scope and cost are
kept tightly aligned
through frequent
estimate updates and
reconciliations
How is the project using

target budget and
estimates?
Target Value Design and

Target Costing
What does evidence

look like?
Page | 81
Level
1 Aware
What does evidence

look like?
3 Localised
Some 3D modelling
3D modelling
overdone
(unnecessary detail or
components)
Drawings on FTP site
Architect or engineer
leads BIM
Clash detection
Modelling done only
as it adds value to
project
Architect or engineer
hands BIM model off
to Construction after
Detailed Design
Most design is still 2D

Many RFIs and change
orders
Engineers design
respective systems.
Drawing coordination
happens at discrete
milestones.
Reduced RFIs and
change orders
Engineers and field

detailers collaborate
in real time to produce
near as-built
documents.
Few RFIs and change
orders
Innovation/VE ideas
are modelled for
constructability and
cost analysis prior to
incorporation into
design
Field Techniques to be
used are considered in
the digital model
Contractors model
construction details
and simulate
installations digital
prototyping
Weekly clash
detection sessions
How does the project

use BIM?
Building Information
Modelling - BIM
(expanded 3D CAD)
2 Ad-hoc
4 Integrated
Estimating is based on
BIM
Drawings on
Integrated Server (Big
Room)
Architect hands BIM
off to Construction
Management after
Criteria Design
BIM is available on site
for use by craftsmen
BIM model is used to
determine cost
options by varying
element attributes.
Incidental RFIs from
trades not involved in
design process.
Design and drawing
work is in real time
with multiple
designers
BIM used to track
weekly digital build
Less clash detection is
needed as some
coordination is
performed in real time
5 Best In Class
Database for as-built
use by Facilities
Construction
Management leads
BIM use
Digital prototyping
and construction
simulation
Database of parts and

devices is developed in
BIM. Operations and
maintenance use
model rather than
manuals
No RFIs. Change orders
are only from owner
scope change
requests.
Use of BIM to track
progress and
completion.
BIM actively used by
Facility Management
as part of their process
Coordination and
clash detection/
avoidance performed
in real time
Page | 82
Level
What process metrics

and targets does the
project use for defining
performance?
Information Centre
Meetings
What does evidence

look like?
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
Engineers, contractors,
and subs measured on
adherence to detailed
plan designed by small
group of architects no
longer working on
project.
Some process
measures determined,
but not distinguished
from outcome
measures.
Overall project
performance against
metrics tracked at
milestones
Process measures
identified and
approved for
conducting LEAN
design and
construction.
Metric performances
tracked at Information
Centre meetings
Managers and
executives more
concerned about
problem solving, A3s,
and alignment with
annual goals.
Metric performances
tracked real-time at
Information Centre
Meetings
Wasteful meeting and

work time is spent
developing systems
for measuring goals
rather than processes.
Additional meeting
and work time is spent
checking adherence to
these systems. No
time is spent
measuring smoother
flow, reducing steps,
or implementing
Measures for
achievement of LEAN
construction goals are
developed, but
tracking and review of
performance is
outside of worksite
and away from design
and construction
processes.
Information Centres
established but
meetings only in some
areas
Percent Plan Complete
(PPC) tracked on
weekly basis as part of
Last Planner approach.
Visual management
used
Information Centre
Meetings are daily,
disciplined gathering
with some problem
solving evident
Target resets based on
performance need
Customer
communications
(memo,
communication plan,
presentations, etc.)
5 Best In Class
Abundant use of A3s
and problem-solving is
obvious, documented,
and leading savings
and efficiencies,
replacing systems for
elaborate tracking of
measures.
Metric performances
tracked at set level
real-time Information
Centre Meetings
Information Centre
Meetings are the main
communication
forums for the project.
They are held daily
and robust problem
solving stems from
the meetings
Problems are closed
out and tracked to
ensure robust
solutions are in place
Page | 83
Level
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
A few participants
understand
Standardised Work
and how to
implement it
Standardised Work
training is given
Some supervisors are
allowing time for their
Tradespeople to write
Standardised Work,
but on an ad hoc basis
A strategic plan for

Standardised Work is
set targeting those
tasks with the largest
safety, quality or
productivity impacts
Each supervisor has a
plan for his crew
All crews are engaged
with writing
Standardised Work
All participants write

and use Standardised
Work.
Training and
knowledge of the
relevant Standardised
Work is necessary
before a task is begun
used continually as
the basis for CI and
Waste Elimination
No evidence of
Standardised Work
written by the teams
themselves
Some high level
Standard Operating
Procedures
Some Standard
Operating Procedures
have input from the
Tradespeople
Some Standardised
Work being written
Many Standardised
Work documents are
being written
used to train new
starters
starting to be used as
a basis for CI by the
crews
Standardised Work
includes value added
and non-value added
(necessary and not)
timings
Standardised Work
documents exist and
are being used actively
for training and CI
Supervisors and
Managers are auditing
against the
Standardised Work in
places
Measures for progress

with Standardised
Work tasks are visible
Each crew has
Standardised Work
and is working on
priority new
documents.
Savings and
efficiencies obvious
from the use of
Standardised Work
All key tasks on site
have Standardised
Work

project use for
implementing
Standardised Work?
Standardised Work
What does evidence

look like?
Page | 84
Level

project use for
implementing 5S and
Visual Management?
5S and Visual
Management
What does evidence

look like?
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some on site have a

basic understanding
of 5S and Visual
Management
There are no processes
for using or training
these tools
Some areas have put

some thought into
their work space
Some training is going
on 5S and Visual
management but it is
ad-hoc
Several areas on site

have good 5S not
only has the Sort & Set
been done, but Shine
is happening regularly,
Standards are clearly
displayed and
Sustainability audits
are a routine feature
5S and Visual
Management add to
the safety, quality and
productivity of the site
Leadership beliefs and
behaviours support 5S
implementation
CI opportunities are
made clearer by 5S
and Visual
Management
The site is poorly laid

out
Lay down areas are
unclear and parts are
often lost/spoiled
Specific job sites are
untidy and job take
longer as we cannot
find tools/parts
Signage exists but
only for HSE
Some areas are

showing signs of 5S
A basic sort and set
has occurred in some
places
Several areas have

good organisation and
Visual management is
clear
Standards are
displayed can be seen
to be adhered to
The site layout as a

whole has been
optimised
The site as a whole is
divided into areas
with specific
accountability for each
designated
5S is running in each
area
Audits are happening
regularly
A well organised and
safe site is apparent to
all
Layout is optimised
from Site to Laydown
area to Job specific
5S changes regularly
as CI ideas are
implemented
New Standards are
put in place as
improvements are
done
Ideas for Visual
management
techniques are
constantly improved
Page | 85
Level

project use for
implementing Built in
Quality
Built in Quality
What does evidence

look like?
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some on site have a

basic understanding
of Quality
Understanding of Built
in Quality is not
widespread
Some design takes

error-proofing into
account but this is adhoc
Participants have
some knowledge of
Built in Quality and
good Supervisors are
using Standardised
Work and 5S
Several areas on site

have good work
practices
Standardised Work, 5S
and boundary samples
so workers can tell
what the required
specification for the
job is.
Some receiving
inspection is done and
parts quarantined if
no good
All crews have a good

understanding of Built
in Quality and are
working to minimise
rework.
Error proofing is
widely used as a
solution
Receiving inspection is
done on all parts
according to a quality
plan
Receiving Inspection
does sample testing
on robust parts
delivered
Standardised Work
and 5S are throughout
the site
Design and errorproofing devices
enable right first time
work
Incoming parts are not

Quality Assured or
checked
Standards for work are
not clear
Poor quality is seen on
site and rework is
common
No system is in place
to react to defects
Some examples of
incoming parts
inspection is seen
Some examples of
error proofing are on
site
Very little root cause
problem solving is
done
Tradespeople alert
Supervisors to defects
but no robust system
is in place to react to
this
Several areas are using

error-proofing and jigs
and fixtures to ensure
a quality job
Problem Solving is
happening, but
usually still in the
blame mode
Some supervisors
react quickly to
defects and some root
cause analysis is
present
A robust system for

Stop Call Wait is being
implemented and
Supervisors trained in
their reactions to
problems
Problem solving is no
longer in blame mode
but seeks the root
cause of the issue and
uses design and error
proofing to solve
No rework is seen on
site
Parts arrive right first
time
People are clear on
how to do their jobs
and the quality
required
Stop Call Wait triggers
problem solving which
is robust and to root
cause
Page | 86
Level
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some knowledge of JIT

exists within Materials
Management (MM)
Different systems hold

the information for
parts ordering and
delivery, but often do
not talk to each other
Systems are
integrated and a Plan
for Every Part has been
established which is
used locally
All Parts arrive on time

to the Plan for Every
Part schedule, be it
Push or Pull
Work is underway to
reduce inventory and
batch sizes to reduce
laydown area size and
increase flexibility
Materials on site are

largely unknown and
untracked
Delays often occur due
to materials shortages
Some laydown areas

are organised and
clear to see
MM is aware of
materials within these
but not others
Localised staging
areas exist at work
faces usually
associated with well
managed laydown
areas
MM are mostly aware
of the parts on site
and most of their
locations
Plan for Every Part

systems are in place
and output used
universally
Pull systems are in
place for frequently
used materials
supported by a clear
drumbeat process for
their use in
Construction
Laydown areas are all
organised and clear to
see.
Staging areas are used
for each workface
A robust process is in
place for tracking and
progressing shortages
including problem
solving to root cause
and solution

project use for
implementing Just In
Time
Just In Time (JIT)
What does evidence

look like?
Laydown areas are

organised, clear to see
and reducing in size
More frequent
deliveries of small
batch sizes are
scheduled and
consolidated to reduce
transportation costs
Page | 87
About the authors

Steve Knapp
Steve Knapp is an Associate Principal for Integrated Project Delivery Services at Lean Project
Consulting, Inc. in Louisville, Colorado, USA.
Steve spent over 30 years working at a major EPC firm in a variety of roles including field
engineering, project management and General Manager of Pulp and Paper. Upon leaving that
firm he spent time working with the Lean Construction Institute developing techniques and tools
for LEAN construction.
Since 2002, he has worked at Lean Project Consulting coaching and training teams in the use of
LEAN construction, including the Last Planner System and related tools.
Debbie Hunt
Debbie Hunt worked at Toyota UK, Burnaston, firstly as a Quality Engineer then as a Purchasing
Technical Support Engineer, providing LEAN support to Toyotas European Suppliers improving
quality, delivery and productivity. Debbie was trained by Toyota in the UK and Japan.
Debbie left Toyota to gain an MBA from the Harvard Business School in their two year course, to
add to her 4 year Masters degree in Mechanical Engineering from Imperial College, London.
Debbie is now the Managing Director of LMR Pty Ltd.
In Australia she has worked with Woodside, Rio Tinto, BHP, OneSteel, Newcrest and others on
roll-outs of LEAN principles for multi-sited, multi-billion $ companies throughout Australia;
training, coaching and helping the Executives and General Managers to:
Set a vision for LEAN in their organisation
Make and sustain the Organisational Change that is needed to fully gain the benefits of LEAN
Identify the hard $ value which could then be realised using the LEAN tools.
Page | 88
Engineers Australia WA Division

712 Murray Street
West Perth WA 6005
Phone: (08) 9321 3340
Fax: (08) 9481 4332
Email: wa@engineersaustralia.org.au
Web: www.engineersaustralia.org.au/wa
Western Australia Division

Lean Construction

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Recommended Practices for the

Application of LEAN Construction

Recommended Practices for the Application of LEAN Construction Methods to

NRW Civil and Mining

IBM Global Business

Southern Cross Electrical

John Holland Group

Civmec Construction &

Killarnee Civil & Concrete

Matrix Composites &

Tenix SDR Pty Ltd

Lean Project Consulting

Transfield Worley Services

Leighton Contractors Pty

UGL Resources Ltd

UWA Business School

Lean Construction Institute

PRINCIPLES OF LEAN CONSTRUCTION .............................................. 2

2.1 The 5 guiding principles ..........................................................................4

RECOMMENDED PRACTICE ................................................................ 6

3.1 Eliminating Waste ....................................................................................6

HELPFUL RESOURCES ......................................................................... 74

4.1 A3 Reports ................................................................................................ 74

2 Principles of LEAN Construction

The 5 Guiding Principles:

the Status Quo

Womack & Jones Lean Principles:

The Recommended Practice Fundamental Techniques:

2.1 The 5 guiding principles

Id like to Challenge that assumption

2.2 Womack and Joness LEAN principles

Over Production producing more than is required by the customer; in a construction

Transportation moving equipment, tools or materials around the site is waste as it

(eg from one laydown

(eg for materials, sign off,

(eg not on critical path)

(eg to worksite / materials)

Figure 1 The 7 Wastes

Approach 1 Waste Walks

taking the next Waste Walk.

Figure 2 Waste Walk Sheet

Approach 2 Value Stream Mapping

Figure 3 Value Stream Map

3.1.2 Pre-requisites for Deployment

initial training sessions for all the workers involved

3.1.4 Frequently asked questions

3.2 Target Value Design

Figure 4 Target Value Design for a field house project

Other options are:

3.2.2 Pre-requisites for deployment

an estimate of the current project cost is available

staff with conceptual estimating skill are available

Resources required for deployment include:

the ability to continuously estimate, including conceptual estimating capability.

Figure 5 Cost tracking on a photovoltaic cell project

Figure 6 Target Value Design for West Pavilion Hospital Project

3.2.3 Frequently asked questions

3.3 Building Information Modelling (BIM)

agreeing on hardware, software, location of work stations, etc.

starting to build the model based on drawings, sketches, an existing model or

incorporating input from additional team members (mechanical, electrical, fire

3.3.2 Pre-requisites for deployment

access to appropriate computer hardware and software with connection capability