2/11/15

STR663:  Selected  Topics  

STR763:  Advanced  Selected  Topics  

Lecture  1  –  Introduc?on  to  Lean  Construc?on  

 
Dr.  Omar  El-­‐Anwar  
 
1  

Agenda  
•  Course  Introduc?on  
•  Introduc?on  to  Lean  Construc?on  
•  Integrated  Project  Delivery  
•  Course  Deliverables  
•  Groups  Forma?on  

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Tenta?ve  Syllabus  
•  Part  I:  Lean  Construc?on:  
–  Introduc?on  to  Lean  Construc?on  
–  Lean  Project  Delivery  System  
–  Integrated  Project  Delivery  
–  Lean  Tools:  
•  5S  
•  Policy  Deployment  
•  Value  Stream  Mapping  
•  Last  Planner  System  
•  Just  in  Time  Delivery  
–  ABC  Cos?ng  
–  Toyota  Way  Principles  
3  

Tenta?ve  Syllabus  
•  Part  II:  Research  Methods:  
–  The  Research  Process  
–  Surveys  
–  Interviews  
–  Experimental  Research  
–  Case  Studies  
–  Data  Collec?on,  Analysis,  Findings,  and  
Repor?ng  

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Tenta?ve  Schedule  
Lean%Construction Research%Methods
Topic%Covered Topic%Covered
10#Feb week)1 L1:$Introduction,$Integrated$Project$Delivery
HW:)Teams)Formed,)Students)Data)entered)to)course)website
17#Feb week)2 L2:$5S,$Ploicy$Deployment,$Value$Stream$Mapping,$A3
HW:)Project)Design,)Project)Plan)prepared)on)A3)(submit)as)soft)and)hard)copies)
24#Feb week)3 In#Class:)Project)Plan)Presented)and)Approved R1:$The$Research$Process
HW:)Select)a)reseach)topic,)Propose)your)research)plan)on)A3
3#Mar week)4 HW:)Bring)to)Next)Class)Colored)Stickies,)2)A0)and)tape In#Class:)Research)plan)presented)and)approved
HW:)Read)state#of#art)review)papers
10#Mar week)5 L3:$Last$Planner$System
In#Class:)Phase)Planning)and)Look#ahead)Planning
17#Mar week)6 In#Class:)WWP R2:$Surveys
HW:)Prepare)progress)report)on)A3 In#Class:)Literature)Review)Checkpoint)(presented)on)A3)
24#Mar week)7 L4:$Toyota$Way
In#Class:)progress)report)presented)and)reviewed,)WWP
31#Mar week)8 In#Class:)WWP R3:$Interviews$+$Experimental$Research
HW:)Interviews)Reading
7#Apr week)9 In#Class:)WWP R4:$Case$Studies
)HW:)Case)Study)Reading
14#Apr week)10 In#Class:)WWP R5:$Data$Collection,$Analysis,$Findings,$and$Reporting
HW:)Prepare)progress)report)incomplete)draft
21#Apr week)11 In#Class:)WWP In#Class:)Literature)Review)Progress)Report)Incomplete)Draft
HW:)Prepare)progress)report)on)A3
28#Apr week)12 In#Class:)progress)report)presented)and)reviewed,)WWP

5#May week)13 No)Class)#)Vacation

HW:)Email)Literature)Review)Report
12#May week)14 In#Class:)Literature)Review)Presentation

19#May week)15 In#Class:)Lean)Construction)Project)Presentations)and)A3)submission

26#May week)16 No)Class 5  

Is  this  course  for  me?!  

•  High  Commitment  Level  
–  Reliability  is  the  key….  
•  Objec?ve:  Learning  versus  degree  
•  Concepts  versus  tools  
–  Can  some?mes  be  ambiguous  
•  Are  you  taking  too  many  courses?  
•  Discipline  

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Course  Data  
•  Website:  sites.google.com/site/665str/  

•  Grading:  
–  35%  Term  project  
–  15%  Term  Paper  
–  50%  Final  Exam  

•  Take  Notes….  
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Introduc?on  to  Lean  

Construc?on  

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Origin  of  Lean  Thinking  

Follows  Toyota’s  Produc?on  System:  

By  Mid  1990’s   Japan   USA   Europe  

Produc?vity  (hrs/vehicle)   16.8   25.1   36.2  
Quality  (defects/1000  vehicles)   6   8.23   9.7  
Work  force:  Sugges?ons/Employee   61.6   0.4   0.4  
Space  (SF/vehicle/year)   5.7   7.8   7.8  
Repair  area  (%  of  Assembly  area)   4.1%   12.9%   14.4%  
Inventories  (days)   0.2   2.9   2  

(Womack  and  Jones:  The  Machine  That  Changed  the  World)  

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Origin  of  Lean  Thinking  

Toyota  vs  the  Big  3  in  NA  (Ford,  GM,  Chrysler)  in  2003:  
 
•  Annual  Profit  =  $8.13  billion  >  Big  3  combined…!  
•  Shares  increased  24%  over  2002  ….  Big  3  decreased  
•  Market  capitaliza?on  =  $105  billion  >  Big  3  combined…!  
•  Return  on  assets  =  8  x  industry  average  
•  Made  profit  every  year  for  the  last  25  years  
•  Camry:  top  selling  passenger  car  in  US  for  5  years  

(Liker:  The  Toyota  Way)  

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Origin  of  Lean  Thinking  

Toyota  world  wide:  
 
•  Corolla:  top  selling  small  car  in  the  world…!  
•  Lexus  in  2002  outsold  BMW,  Cadillac,  Mercedes-­‐Benz  for  
3  years  in  a  row  in  the  US  
–  Only  introduced  in  1989!  
•  Fastest  product  development  cycle  (less  than  half  of  
compe?tors)  
•  Benchmarked  as  best  in  class  for  quality,  produc?vity,  
manufacturing  speed,  flexibility  

(Liker:  The  Toyota  Way)  

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Current  Trend  
•  Over  50%  of  US  manufacturing  are  
implemen?ng  some  level  of  lean  
improvement  

The  Associa?on  for  Manufacturing  Excellence  (AME)  

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Toyota  Way  

A  philosophy  and  a  set  of  tools  to  be  appropriately  applied  to  
your  situa?on.  Its  processes  are  dependent  on  each  other.  
 
(Liker,  The  Toyota  Way)  

13  

It  is  people  who  bring  the  system  to  life    

“My  father  was  not  educated.  The  only  strength  he  had  was  
to  believe  in  one  thing  all  the  way:  that  the  Japanese  have  
latent  capabili/es.”    
 
(Kiichiro  Toyoda,  Toyota  Motor  Company  founder)  

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Spirit  of  Challenge  

We  strive  to  decide  our  own  fate.  We  act  with  self-­‐reliance,  
trus;ng  in  our  own  abili;es.  We  accept  responsibility  for  our  
conduct  and  for  maintaining  and  improving  the  skills  that  
enable  us  to  produce  added  value    

We  accept  challenges  with  a  crea;ve  spirit  and  the  courage  

to  realize  our  own  dreams  without  losing  drive  or  energy.  We  
approach  our  work  vigorously,  with  op;mism  and  a  sincere  
belief  in  the  value  of  our  contribu;on    

(Toyota’s  internal  Toyota  Way  document)     15  

House  of  Toyota  (TPS)  

If  reliable  lookahead  window  >  supplier  lead  ?me:  
You  can  pull  supplier  and  have  JIT  

stop  and  fix  problems  as  they  occur  rather  than  

pushing  them  down  the  line  

Predictable  and  reliable  

If  not  -­‐>  JIT  is  not  good  (mean  and  not  lean)  

javamug.org  
Assign  experts  to  sta?ons  -­‐  they  should  know  how  to  fix  
Produc?on  Leveling   their  own  problems   16  

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14  Principles  

17  

Current  Construc?on  Management  

Ac?vity  Centered  Approach:  
1.  Break  project  into  pieces:  
–  Design:  Value  to  customer  assumed  here  
–  Construc?on:  WBS  
2.  Put  pieces  in  logical  sequence:  Schedule  
3.  Es?mate  ?me  and  resources  to  complete  each  ac?vity  and  
therefore  the  project:  Es?mate  
4.  Each  ac?vity  is  further  decomposed  un?l  it  is  contracted  out  or  
assigned  to  a  task  leader:  Buyout  
5.  Monitor  each  contract  or  ac?vity  against  its  schedule  and  budget  
projec?ons:  Control  
6.  These  projec?ons  are  rolled  up  to  project  reports:  Upda?ng  
(Howell  1999)   18  

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Current  Construc?on  Management  

•  Keep  intense  pressure  for  produc?on  on  every  
ac?vity  assuming  that  reducing  cost  and  
dura?on  of  each  step  is  the  key  to  improvement  

•  Focus  on  ac?vi?es  and  ignore  flow  and  value  

considera?ons    

(Howell  1999,  Koskela  1992,  Koskela  and  Huovila  1997)  

19  

Lean  Construc?on  
•  Produc?on  control  compared  to  the  current  
project  control  
•  Goal:  Mee?ng  customer  needs  beser  while  
using  less  of  everything    
•  Rests  on  produc?on  management  principles  
•  Par?cularly  suited  for  complex,  uncertain,  and  
quick  projects  

(Ballard  and  Howell;  Howell  1999)  

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Lean  Construc?on  
Follows  Toyota’s  Produc?on  System:  
•  Iden?fy  and  deliver  value  to  customer    
•  Eliminate  waste  (anything  that  does  not  add  value)  
•  Organize  produc?on  as  a  con?nuous  reliable  flow:  
–  Stopping  the  line  
–  Pulling  inventory  
–  Distribu?ng  informa?on  and  decision  making    
•  Pursue  perfec?on  

(Howell  1999)  

21  

Lean  Construc?on  
•  TPS  eliminates:  
–  Mura  (Variability):  triggers  waste  
–  Muri  (Overburden):  work  smarter  not  harder  
–  Muda  (waste):  
•  Mo?on  
•  Transporta?on  
•  Wai?ng  
•  Inventory  
•  Rework  
•  Unused  talent  
•  Excessive  Processing  

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Example  of  Inventory  Waste  

•  Steel  Structural  Members  were  placed  in  a  laydown  area  before  
being  moved  to  place  of  erec?on.  Below  is  a  comment  of  an  
observer  (2014):  

“The  staging  of  the  material  at  the  hook  was  a  bit  more  ?me  consuming.    The  
Rigger  and  Foreman  would  look  at  the  erec?on  drawings  and  make  a  list  of    
members  that  would  be  needed  for  erec?on  that  day.    Once  a  list  was  made,    
the  Rigger  and  Forkliu  (with  Operator)  would  go  to  the  laydown  Area,  shake    
out  the  steel  and  find  the  required  piece-­‐marks.    
Once  they  found  the  required  steel,  they  would  typically  have  to  move  some  
members  to  get  to  the  ones  they  needed.    Each  member  would  be  transported  
to  the  Staging  Area  and  sequenced  in  order  of  erec?on.  When  rigging  the  steel  
for  liu,  the  Rigger  would  some?mes  have  to  rig  mul?ple  ?mes  in  order  to  get    
the  center  of  gravity  balanced.”  

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Poten?al  for  Lean  Construc?on  

CII  Report  
Waste:  
Current  ConstrucBon  
,  0  

Value  
Added,  
10%  

Waste,  
57%   Suppor?ng  
Ac?vi?es,  
33%  

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Poten?al  for  Lean  Design/Engineering  

Product  Development  Value  

Stream  Mapping  (PDVSM)  
Manual  (McManus  2005)  

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Poten?al  for  Lean  Construc?on  

Value  Adding:  

26  
(Ballard  2008)  

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Lean  Construc?on  
 
•  Lean  =  waste  elimina?on  based  on  stabilized  opera?on  
•  Tools:  
–  Last  Planner  System  -­‐>  Time  Management  
–  Value  Stream  Mapping  -­‐>  Design/Construc?on  Process  Improvement  
–  Standardized  Work  -­‐>  Quality  Management  
–  Just  in  Time  -­‐>  Procurement  Management  
–  5  S  -­‐>  Site  Layout  Planning  
–  Ac?vity-­‐Based  Cos?ng  -­‐>  Cost  Management  
–  Big  Room  -­‐>  Communica?on  Management  

(Yong-­‐Woo  Kim)  

27  

LCI  Memebers  
•  Include:  
–  The  American  Ins?tute  of  Architects  (AIA)  
–  The  Associated  General  Contractors  of  America  
(AGC)  
–  Turner  Construc?on  
–  Sellen  
–  Skanska  
–  Mor?nson  
–  McCarthy  
–  CH2M  HILL  
–  ….  

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Lean  Construc?on  
•  Progress:  
–  Gevng  popular  in  construc?on  
–  Major  US  owner  and  contractor  associa?ons  reques?ng  LCI  
membership  
–  Moving  upwards:  construc?on  to  design  
–  Future  trend  in  construc?on  (CII)  
–  Outside  US:  UK,  Denmark,  Finland,  Australia,  Brazil,  Japan,  
Korea,  Singapore,  Chile,  Peru  
–  Outside  construc?on  and  manufacturing:  
•  Healthcare,  souware  development,  oil  field  development  

(Yong-­‐Woo  Kim)  

29  

Lean  Project  Delivery  System  

25-­‐Sep-­‐12   30  

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LPDS  Essen?al  Features  

-­‐  Project:  structured  and  managed  as  a  value  genera?ng  process    
 

-­‐  Downstream  stakeholders  involved  in  front  end  planning  and  design  
through  cross  func?onal  teams    
 

-­‐  Project  control  has  the  job  of  execu?on  as  opposed  to  reliance  on  
auer-­‐the-­‐fact  variance  detec?on    
 

-­‐  Op?miza?on  efforts  are  focused  on  making  work  flow  reliable  as  
opposed  to  improving  produc?vity    
 

-­‐  Pull  techniques  are  used  to  govern  the  flow  of  materials  and  
informa?on  through  networks  of  coopera?ng  specialists    
 

-­‐  Capacity  and  inventory  buffers  are  used  to  absorb  variability  
 
-­‐  Feedback  loops  are  incorporated  at  every  level,  dedicated  to  rapid  
system  adjustment;  i.e.,  learning.    
  (Ballard  2000)  

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Some  Lean  Principles  

STOP   START  
Being  concerned  only  about  the  task   Integra?ng  project  organiza?ons  for  
under  your  contractual  control   project  success,  thus  individual  partner  
success  
Passing  risk  to  others  and  assuming  it   Working  collabora?vely  to  reduce  
goes  away   overall  project  risk  

Manage  by  Result   Manage  by  Means  and  Results  

Yong-­‐Woo  Kim  

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Integrated  Project  Delivery  (IPD)  

Integrated Project Delivery (IPD)

Issues  with  tradi?onal  contractual  approaches:  
•  Problem  1:  Good  ideas  are  held  back    
–  In  design  phase,  subs  hold  good  ideas  to  have  compe??ve  
edge  when  bidding  
•  Problem  2:  Contrac?ng  limits  coopera?on  and  
innova?on  across  trade  boundaries  
•  Problem  3:  Inability  to  coordinate    
–  no  formal  effort  to  link  the  planning  systems  of  subs,  
or  to  form  any  mutual  commitments  or  expecta?ons  
amongst  them    
•  Problem  4:  The  Pressure  for  local  op?miza?on    

(Mathews and Howell 2005)

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IPD Principles
•  A prime contract: A single contract binds the IPD
Team (Contractor, Designer) to the client
•  Primary Team Members (PTMs) each accept full
responsibility for all of the terms and conditions of
the prime contract
•  Each member is reimbursed for all verifiable direct
costs that he incurs.
•  Profit is calculated at the project level at the end of
the project and divided based on a formula.
•  PTMs open their books pertaining to this project to
the other PTMs and to the Client

(Mathews and Howell 2005)

Integrated Project Delivery (IPD)

•  The Team has one price, and that is the price to the
Client.
•  The Team has one scope, and that is the project
scope as defined in the prime contract.
•  There is no accounting among PTMs for who is over
or who is under budget.
•  “An overrun on the project will reduce the gross
profit available for distribution. Under this pact,
they came to think of themselves as mountain
climbers roped together. If one falters the others
pick up the slack; they don’t cut him loose.”

(Mathews and Howell 2005)

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Readings  
•  Check  the  course  website  

37  

Course  Main  Assignments  

•  Term  Project  (group  work)  

•  Term  Paper  (individual  work)  

38  

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