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Lean Project Management - Mott Macdonald
Lean Project Management - Mott Macdonald
… to Lean Production
1940s Eiji Toyoda visits Ford – impressed with scale/flow BUT not waste!
1950s Toyota commences the path of “Toyota Way” and Production System
1990s Worldwide all major blue chip manufacturers have adopted Lean
What is Lean?
Outcomes
• Lean will maximise customer value while minimising waste
• Lean creates more customer value with fewer resources
• Lean provides:
– fast, flexible processes
– that give customers what they want, when they want it
– at the highest quality and affordable cost
What is Lean?
Process
• Lean is a methodology which aims to identify blockages to
workflow, and take away those which have no use.
• The ideal of Lean is uninterrupted workflow, with every
action providing value of some kind.
• However, Lean is also about building a culture in which the
abilities of staff are fully used and continuous improvement
is embedded into the organisation.
What does Lean look like?
Problem
Solving
End to end Process Making the
Continually improving most of staff
processes to deliver value experience,
efficiently and effectively. knowledge &
ingenuity.
Isn’t Lean just another word for ‘Common Sense’?
Benefits of pull:
• can confirm that each product has a customer
• opportunity to be flexible and make changes
• defects are spotted early by only producing one unit at a time
Creating the Lean Enterprise
3 Key Questions
• Where are we today? (‘the current state’)
• Where do we want to be? (‘the future state’)
• How do we get there? Many initiatives dive straight in
here . . . and don’t deliver the benefits
• This is fundamental to allowing robust improvement
How would using Lean impact on me/my team/ my
directorate?
• Do More…
– World class customer service
– Improved quality
– Speeding up the programme
– Improved working environment
How Lean impacts the bottom line
• With Less…
– Equipment/plant
– Space
– Human effort
– Inventory
– Time/cost
– Through the relentless elimination of waste and
reduction of variation
The 8 Wastes- TIM WOODS
Waiting
(Idle time) Over-Processing Defects / Rejects / Re-work
•Repeated manual entry of data
Waiting for…
•Data entry errors
•Un-needed process steps
•Slow pc’s
•Pricing errors
•Customer response
•Missing information
•Authorisation
•The printer / photocopier
Problem Solving
(continuous improvement and learning)
Process
(eliminate waste)
30
Background and Objectives – Project Options
Design Process
High Target early completion
Stats
of Pavement Construction
Pavement Construction
Earthworks CBM North
3km earthworks platform
Benefits
Minimum costs of CBM, Blacktop
Low
The current process was examined during High Level Process Mapping and was
not previously defined.
33
Earthworks Process Implementation
It was important to establish current productivity in order to measure any
improvements. Working with the Team measurement took place on site of the
Excavator utilisation over a working day and the Dumper Truck Run Time
variation
34
Earthworks Process Implementation
Excavator Utilisation
– Identified as a key indicator of utilisation and performance
– Anecdotal evidence from the team on site suggested Excavator
down time was “very low - about 5%”
5% (words from the contractor
PD)
– However analysis showed excavators were idle much more than this
Earthworks Process Implementation October 5
Loading Loading
Time 96% Time 76%
Earthworks Process Implementation October 5
Excavator Down Time 5 October
Earthworks Process Implementation October 12
Elements on the haul are effecting the On both full days of analysis, variable
run times of all trucks run times are experienced by all
trucks observed
Earthworks Process Optimisation
Excess Trucks sitting idle
We can see that the number of trucks did not Potential to add
always adequately cater to the Haul Length extra trucks to
balance haul length
Earthworks Process Potential Savings
• Define-Measure-Analyse-Improve-Control-Transfer (DMAICT)
– the improvement cycle that underpins Lean implementation
• Blitz Improvement
– a tool of continuous improvement
• The 8 wastes
– the cornerstone of Lean implementation
• 5’s
– creating a productive and safe workplace, where abnormalities are made visible
and corrected
Some of the basic tools
• Visual management
– simple communication of the state of the process (e.g. what needs to be done,
how things are going)
• Standardisation
– doing things the same. Every time. In the least wasteful way
• Takt Time
– the process ‘heartbeat’ to fir customers’ need
4 elements
• Primary Visual Display (PVD)
• Regular Team Meetings
• Action Sheet System
The Plan
• Main Contractor/Planning dept does the plan
• Imposed on the contractors
• Contractors plan site work individually and
independently
Collaborative Planning
On Site
• Contractors try and follow the Main Contractor plan
• But not always bought into achieving the plan
• Penalised if they don’t perform to plan
Collaborative Planning
Project Management
• Did we make a profit? – if not who needs to
improve?
• Did we finish on time? – if not who needs to
improve?
• What we will try and do better next time?
1 2 3 4 5 6 7 8 9 10 11 12
buffer
Collaborative Planning Process
Feedback Loops
-The measures indicate when something is going wrong
- Any activity not achieved in the 1 week plan goes into next 1 week
plan and 6 week plan
- The 6 week plan updates the collaborative plan
- The collaborative plan updates the agreed project programme
The effect buffer on the Plan
¾
Painting 1st coat ¾ day day
1 2 3 4 5 6 7 8 9 10 11 12
buffer
Collaborative Planning – Objectives
Designer
Trades
Sub-Contractor Architect
Implementing 5S in the Workplace
The 5S Process
Sort
5S
good habit everything in its
place”
Do things the
same way with … and get rid of
the same Standardise Sweep up what is not needed
equipment (waste)
• Implementation/Control Plans
• PBL tools to sustain gains
Control
• Establish Process Management System What controls can be put in place to sustain gain ?
Cause and Effect Diagram (Fishbone Diagram)
The Ishikawa diagram (fishbone) is the brainchild of Kaoru Ishikawa, who pioneered quality
management processes in the Kawasaki shipyards, and in the process became one of the
founding fathers of modern management. First used in the 1960’s
COMMUNICATION PROCESSES different Agents, different quality plans
forget
De-scoping and
Unclear Not compliant
8 re-scoping of 9 Financial budget 9 648
definition with standards
works
Lean Project Management
David Butcher and Steve Pearson
United Kingdom
£7.5 million saving on the Applied to the remainder of the project, truck and
A46 newark to widmerpool excavator optimisation offered savings of over
£7.5 million.
30% savings
■■ £220 million dualling of 28km of single
carriageway Productivity has been improved through better
■■ Construction start and completion: co-ordination between the main contractor and
July 2009-summer 2012 earthworks subcontractor. When the project
■■ Lean focus: dry weather earthworks started a fixed number of trucks and drivers was
supplied. Trucks were subsequently matched with
A 10 day study revealed that significant excavator fluctuations in earthmoving demand, enabling
working time was being lost because too few maximum output.
W
e spend £2 billion a year on construction don’t. “Whether a car, a plane or a new section
and maintenance of the network of highway, numerous processes are combined in
and believe that we can achieve producing the desired outcome. Each process has
efficiency savings of 20-30%,” says Highways its own sub-processes. Lean techniques are used
Agency divisional director for Lean improvement, to look at the way every sub-process is performed.
Derek Drysdale. Lean is a process and product By identifying discontinuities and poorly co-
improvement tool which has been used in the ordinated or unproductive activities throughout the
manufacturing sector for the best part of 40 delivery team and supply chain we can eliminate
years. The Highways Agency has made Lean a waste and improve value,” Steve explains.
requirement for its supply chain for all future
work. Mott MacDonald is providing the know- proving lean on uk highways
how the Agency needs to deploy it nationwide. Up to September 2010, Mott MacDonald-led reviews
Mott MacDonald director Martin Perks says: of six projects had identified £14 million of efficiency
£10
“From top to bottom, the Agency’s supply chain gains – contributing towards £30 million of savings
must demonstrate that it is implementing Lean across 40 Lean pilot projects. Studies included
processes. This is an industry changing move.” dualling of the A46 Newark to Widmerpool (right)
and widening of the A1 Dishforth to Barton (over
Mott MacDonald has worked with the Agency page), as well as construction of highway drainage
benefit from every to develop its own in-house Lean capability and and information gantries, winter gritting and salting,
produce a strategy and tools to enable the take-up design and construction of standard highway
£1 invested in Lean of Lean thinking across the supply chain. structures, roadworks set-up, highway inspection,
traffic management and customer care.
What is Lean?
“Toyota and Boeing are among the best known Derek says that the studies clearly indicate the
£600M
exponents of Lean thinking, but it’s used by almost cost benefits of implementing Lean management
all of the top 1000 blue chip companies to drive practices: “Experience suggests that every £1
effectiveness,” says Mott MacDonald project invested in implementing Lean processes will
manager Steve Pearson. Simplistically, Lean yield, on average, at least £10 of benefits.” He is
potential annual savings involves studying all of the activities carried out emphatic that Lean is not aimed at paring back
during delivery of a product or service, improving suppliers’ profits – quite the reverse. “Working
to the Highways Agency those that add value and eliminating those that more effectively is to everybody’s advantage.”
£14M
of efficiencies achieved Lean involves studying all of the
across six pilot projects activities carried out during delivery
of a product or service, improving
those that add value and eliminating
those that don’t.
Martin Perks, Mott MacDonald director
martin.perks@mottmac.com
£3 million saving on the supply of materials to the paving machine, while Driving effectiveness, unique. It’s easier to see how you might perfect a Lean knowledge. The firm has also assisted in
A1 Dishforth to Barton the number of workers in each paving gang was cutting waste process if you’re producing tens of thousands of developing what Derek calls a ‘Lean maturity DID YOU KNOW…
halved – the strength of each gang was initially Most of the recommendations that come out of cars. It’s less obvious in construction where every assessment tool’. This requires suppliers to report As well as applying Lean on
■■ £318 million widening of 22km of dual matched to the paving machines’ theoretical output Lean analyses are not revolutionary. “But on most road you work on has its own topography and the activities they have undertaken and show construction projects, we’re
carriageway into a three lane motorway rather than their actual output, which was almost construction jobs people are immersed in the ground conditions, unpredictable weather and a evidence of benefits delivered – both in terms working with customers
■■ Construction start and completion: 50% lower. Productivity was increased thanks to day-to-day activities of running the project and different set of construction personnel – and even of cashable savings and the growth of skills and
to achieve Lean efficiencies
April 2009-April 2012 better communications across the project delivery delivering on their contract. So it’s hard to make where adjacent sections of the same project can knowledge in their workforce. Reporting provides
in the banking and financial
■■ Lean focus: earthworks, road paving and chain, reducing time lost waiting for deliveries. the time or see the benefits of stepping back be significantly different.” What is common from a measure of how far they have progressed in
implementing Lean and identifying scope for future
services, waste management,
communications duct installation Improvements resulted in 17 days time saving and considering whether their operation is as project to project is generic activities – dry and wet
and cost savings in excess of £600,000. effective as it could be,” Martin says. Derek adds weather earthworks, construction of foundations, improvements. “We reckon it will take about five
and central and local
Earthworks: Disposal of topsoil was eliminated that in the past the Highways Agency has been retaining walls, culverts and bridges, drainage, years for Lean to be fully embedded and 10 to government sectors.
and the quantity of imported fill material was Communications: On the 16km Dishforth to focused on issues such as quality, value for money, lighting and communications. deliver maximum benefits. Other industries show
halved by looking project-wide at excavation Leeming section, 9m lengths of communications predictability of outturn and journey time reliability, that Lean’s an ongoing journey,” says Derek.
and fill requirements and classifying excavated ductwork were installed instead of the normal not on process and product improvement, per se. “We want our suppliers to think about the process “There’s continual scope for improving efficiency,
material more accurately. Efficiencies reduced the 6m lengths. This yielded £15,000 of savings on as well as the product and demonstrate steady effectiveness and value.”
number of tipper truck journeys by 34,000 and connecting collars alone. With fewer connections, Many in the construction sector initially struggle to improvement in the way they perform the activities
saved £2.45 million on haulage and disposal. a 15% time saving was achieved on pressure see how Lean will work for them, Martin adds. “In involved in expanding, improving and maintaining Cracking down on the deficit, the UK government
testing the joints. As well as cost benefits, safety manufacturing you have a controlled environment the highway network,” Derek says. “And we require cut budgets across most departments in October
Blacktop: The quantity of asphalt laid in each was improved by reducing worker exposure with a consistent supply chain – it’s relatively easy our suppliers to share their learning with the rest 2010. Transport saw available capital fall by 11%.
shift was increased by 8% by improving the to traffic. to continually refine the production process. By of the highways community, so that everybody “Lean will play a key role in achieving better
contrast, each construction project involves setting drives better value for the public purse.” outcomes in these tougher times,” Martin says.
up, running and then decommissioning what is
effectively a business, all in the space of a few To this end, Mott MacDonald has designed
CLIENT: hIGHWAYS AGENCY
years. And the majority of construction projects are a methodology for recording and transferring