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The Iowa Events Center:

A Mechanical Contractors Story


A Presentation by

Nathan Slauson
Project Executive The Waldinger Corporation
For

The Sixth Annual Lean Congress


Park City, UT September 16, 2004

Biography Nate Slauson


32 Years Construction Industry Experience Doctoral Candidate Case Western Reserve University (Weatherhead School of Management) Journeyman Sheet Metal Worker Adjunct Professor William Penn University

Overview Project Description Project Information Project Statistics Motivation Project Assumption Project Implementation Tools Results

Project Description
Public Project Owner: Project Governance: Contract Type: Special Conditions: Des Moines, Iowa Polk County Construction Manager (NOT AT RISK) Bid and Specification Project Labor Agreement OCIP Insurance Program No Storage on site

Project Contractual Relationship

Project Information
Original Mechanical Contract: Mechanical Contract: Original Sheet Metal Contract: Sheet Metal Change Orders: Deductive Sheet Metal Change Orders: Related Jobs Income: Sheet Metal Contract: $23,200,000 $24,632,815 $6,810,400 $1,239,600 <$500,000> $470,000 $8,020,000

Project Statistics
RFIs SM RFIs Letters Project CCA Project Amendments 2,300 236 280 400 22

Motivation
Reduce Risk Uncertainty of the Project (Process & Product) Complexity of the Project Goal Alignment and avoiding Suboptimization Involvement of Other Contractors Focus on Effectiveness Fear

Lean Thinking Assumption


The Transition from Transactional to Relational Project Process

Implementing the Change to the Relational Process


The Fundamental Objective
Build Trust among all participants (CM, Design Professionals, and other Contractors) Establish the concept of the Greater Good of the Project. (Tragedy of the Commons) 1. Leadership 2. Problem-solving Problem-solving 3. Teamwork

Building the Relationship


Focus on improving the project opportunities for the project Team. Create credibility through performance and direct action. (Problem-solving) Educate others of how working together enhances opportunities for all. Share Information

Why Is The Relationship Process Leap So Hard?


We usually focus only on Our Problems and Issues 1. 2. 3. 4. 5. 6. Information is not shared Trust is not established It takes time and effort to see the bigger picture The status quo is confrontational and transactional Problems are not solved ahead of time Communication and comments are not maintained

Key Issues
Planning Documentation Process Identify key personnel required for the new project. Changing the duct fabrication requirements (Lindab Spiral), duct routing and shape, and transference of field hours to shop. Establish Construction Estimate for detailing, field, and shop. One-Piece Flow Manufacturing (Shop and Field) Duct Hanging methods (Gripple) Governance Model (Benchmarking Process) Obtaining Cooperation in a Hostile Environment

Develop the Plan


Start building relationships with the notification of project award with Contractors, Design Professionals, and CM.

Review the contract before signing. 1. Highlight all changes to AIA and establish a master document. 2. Verify your scope opportunities 3. Read other contractors scopes to identify duplication of scope and opportunities.

Develop the Team to Handle the Documentation


Focus the management team on the importance of documentation. Provide the Tools to maintain the documentation and communication channels. Set project priorities with all subcontractors and predecessor and successor contractors. Provide leadership by involving all into a meaningful project block of contractors.

The Job of Documentation


Set up Project Documentation Requirements Sell concept to the internal political structure Hire Administrative Assistant Provide the Leadership Chain of Command Provide the Tools required Follow-up and Follow-up (Diligence does count)

Tools for Documentation


Set up a separate drive on the computer for the project team network. All documents to be maintained on the assigned project drive (Billing, Correspondence, RFIs, Plans, Submittals, Change Orders, etc.) Setup E-groups for emailing RFIs, CCAs, Addenda, correspondence, meeting minutes, etc. to all subcontractors. Team meetings with Subcontractors to explain advantages of E-group process. Plan size documents also scanned and forwarded for printing at subcontractor location. Project Management to maintain focus on the whole & sustain the documentation process to avoid crisis and identify Project opportunities.

Iowa Events Center Sheet Metal Field Organizational Project Chart

Mike Deeds Project Supt.

Cory Fisher Arena Foreman

Name Field Detailer

Scott Moon Exhibit Hall Foreman

Name Crew leader

Name Crew leader

Name Crew leader

Duct Conversion and Rerouting

Estimate Comparison

45,000 40,000 35,000 30,000 Man Hours 25,000 20,000 15,000 10,000 5,000 0 Detailing Shop Field Original E stim ate Construction Estimate

Action Steps
Bring in Supt to the office for Planning and familiarization of Project. (Problem Identification) Provide all information, submittals, equipment, and project estimated requirements for the team before assigning tasks. Use Supt to work with Detailing Team to establish priorities and opportunities. Maintain team meetings to verify goal setting, progress, and problems. Maintain constant communication with Subcontractors, CM, other Primes, and Design Professionals.

Flow One-Piece Manufacturing!


Raw Materials Piece Part Plan Component Assembly Goals Feedback Installation Final Assembly Delivery Teamwork

Field One-Piece Flow Manufacturing

Continuation of Flow

Finish of Assembly

Duration of Assembly Process 2 crew hours (3 man Team)

Gripple Hangers

Duct Installation

Benchmarking Decisions
GOVERNANCE
Policy Creates

_-

Complex, Opportunities and Interdependencies

Producing

Choices

When not managed

When well handled

Increase Unproductive Diversity

Infighting No Action Turf Battles Manipulation Power Struggles

Original Thinking Teamwork Creative Problem Solving Add Value Innovation

Reduce Unproductive Diversity

Which

Which

Lower Efficiency Raise Costs

Making Organizations: Competitive Adaptive

Kill Innovation Responsive Alienate People Profitable Frustrate Everyone

Process Changes
Rectangular fabricated duct reduced by 58% (305,000 LBS). Spiral Duct purchases increased by 200% (104,000 LBS) Total number of pieces installed decreased by 75%. Transferred traditional field work into shop for assemblies. Off site storage established to adjust for schedule variability. Focus on Lookahead Planning at all levels. Teamwork with Project Participants

An Example of Spiral Conversion

Duct Assembly from Shop

Grille and Damper Assembly from Shop

Complete Assembly

Equipment Stored at Truck Yard

Material Stored at Vendors Location

Creative Innovation
Negotiate direct with Manufacturer for early pay options Company Savings of $100,000 Change Traditional Rental Equipment Timelines Company Savings of $45,000 Control of the project schedule Unnamed CM Quote Establish lean process with CM to improve project schedule Leadership from within Creating Team Cooperation in an hostile environment utilizing techniques from The Evolution of Cooperation by Robert Axelrod

I have never seen a Sheet Metal Contractor lead the project delivery system in my 25 years as a CM

Results
Unanticipated PLA Savings Labor reductions of 33% Related Project Income Substantial Profit Improvement Built and Maintained positive relationships with CM, Design Professionals, and other Prime and Subcontractors. Provided new approach to project governance in contrast to the traditional confrontational and transactional process utilized on most projects. Requested on additional Projects