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Professor Lauri Koskela School of the Built Environment University of Salford
© Lauri Koskela 2009 2008
• What is lean production?
– Why has it been so difficult to decode? y
• What is lean construction?
–H How i it diff is different? t?
• Issues of implementation p
© Lauri Koskela 2009
What is lean production?
© Lauri Koskela 2009
Car manufacturing in North America
© Lauri Koskela 2009
Why does the Toyota Production System ( (TPS) p ) perform better than conventional methods of production in car manufacturing?
© Lauri Koskela 2009
Routinized learning capability 3. Routinized manufacturing capability • • • static & routine dynamic & routine y dynamic & non-routine non routine 2.Toyota production system (Fujimoto 1999) 1. Evolutionary learning capability © Lauri Koskela 2009 .
Routinized manufacturing capability © Lauri Koskela 2009 .
The seven wastes • • • • • • • Overproduction Correction Material movement Processing Inventory Waiting Motion Flow of materials Human action © Lauri Koskela 2008 .
The conventional big idea of production Transformation Input p Production Output © Lauri Koskela 2008 .
labor. machines Production Production process process Products Subprocess A Subprocess B Powerful assumption: decomposed subprocesses are mutually independent! Thus. section. function.Decomposition Materials. the whole production effort can be integrated in an additive manner: by minimizing the costs of each department. and work station the total costs will be minimized minimized. © Lauri Koskela 2009 .
the T idea leads manufacturing • to buffering for creating (relative) p . independence between workstations.In manufacturing. ie.. . material piles which ensure that each work station can keep a high utilization rate – and seem always busy • to big batches f minimizing the set-up for time © Lauri Koskela 2009 .
Sou ce Source: Schonberger (1996) World Class manufacturing: The Next Decade. © Lauri Koskela 2009 .
speed 1995) Car manufacturing Radio. an inverse concept in comparison to inventory turn. in entor t rn (Holmström: Realizing the productivity potential of speed.Inventory turn rate y is connected to efficiency! Note: Commitment measures inventory in days. tv and communications equipment © Lauri Koskela 2008 .
Source: Schonberger (1996) World Class manufacturing: The Next Decade. © Lauri Koskela 2009 .
US Manufacturing performance 1950 .2000 The more intensively the T idea is implemented. © Lauri Koskela 2009 . 1996. World Class Manufacturing: The Next Decade. the more decline in performance! Figure from: Schonberger.
© Lauri Koskela 2009 .The transformation model model… • is a heroic idealization that • may lead to counterproductive results results. • which b d hi h by decreasing visibility and rapid i i ibilit d id feedback. such as excessive work-in-progress. • tends to reduce performance further – • eq alling to a vicious circle equalling icio s circle.
inspection) • Let us eliminate the bad stages (also called waste) before making good stages even better © Lauri Koskela 2009 .The big idea of lean • Production happens in a timeline • Regarding the timeline of a piece of material. waiting. there are good stages (processing) and bad stages (rework (rework.
Moving Waiting Processing A Inspection Moving Waiting Processing B Inspection Scrap © Lauri Koskela 2009 .
.. • Just-in-Time (JIT) – Reduction of transfer through p g production cells and appropriate layout – Elimination of (separate) inspection – Reduction of waiting through small lots and pull production control © Lauri Koskela 2009 .In manufacturing. the F idea translated into.
composed of transformation and other phenomena: inspection.Flow view Fl i • Concept: Production is a flow. variability reduction. i bilit d ti t © Lauri Koskela 2009 . waiting • First principle: Elimination of nontransformation phenomena (waste) • Further principles: Time compression. moving. etc.
Why time compression? Waste W t time Waste time Waste time Processing time ti Processing time Processing time Processing time Time © Lauri Koskela 2008 .
Time compression… compression • leads to enforced improvement and innovation in – Production system design – Production control © Lauri Koskela 2009 .
Routinized learning capability © Lauri Koskela 2009 .
© Lauri Koskela 2009 . carrying out an experiment and testing the experiment. it is establishing sets of hypotheses that can be tested.Scientific method • (Sh h t & Deming 1939): “It may b helpful t (Shewhart D i 1939) be h l f l to think of the three steps in the mass production process as steps in the scientific method. Thus.” • Spear and Bowen (1999): “ whenever Toyota defines a specification. In this sense. and inspection correspond respectively to making a hypothesis. production. These three steps constitute a dynamic scientific process of acquiring knowledge. the scientific method is followed ” followed. hypothesis. specification.
Interlocking methods for learning • Interlocking set of methods and tools – Scientific experimentation p – Standardization – Visual management: explicit/direct representation of the standards in the workplace © Lauri Koskela 2009 .
Evolutionary learning capability © Lauri Koskela 2009 .
Constantly evolving • Recent examples – A3 – Monozukuri © Lauri Koskela 2009 .
typically for kaizen events. Heading Plan Do Check Act Footnotes Adapted from Lean Manufacturing Advisor. h ld fl t l i i th t f bl l i • It also keeps the visual record of past problem solving efforts. September 2005: Volume 7. Number 4 © Lauri Koskela 2009 .A3 • A3 (An A3 size standard paper) is used to visually explain problem solving processes. explaining the PDCA steps of problem solving. • It should flow as a story.
png © Lauri Koskela 2009 .Source: http://www.com/wordpress/wp-content/images/shmula-5s-fishbone.shmula.
(Arai. monozukuri requires continuous practice. • “Similar to martial arts such as karate and bujyutsu. (JETRO) • “Monozukuri is a term used since the late 1990s to identify the cultural heritage that Japanese manufacturers have developed since the industrial revolution ” (Arai MEMA) revolution. improvement and patience to master a skill or create a new skill to outperform others. others ” (Arai MEMA) © Lauri Koskela 2009 . effort.Monozukuri • “ “monozukuri means h i th spirit t produce k i having the i it to d excellent products and the ability to constantly improve a production system and process. (Arai.” process.
Procurement Takashi Hatchoji Takashi Executive Vice President and Executive Officer. Legal & Corporate Communications. Chief Hitachi Group MiyoshiKoskela2009 Headquarters. in charge of Research & Development. General Manager of Supervisory Office for MONOZUKURI Executive Vice President and Executive Officer.Hitachi Executive Officers [Effective January 1. General Manager of g Compliance Division. in charge of Business Development and Finance © Lauri © Lauri Koskela 2008 . Management Audit. 2007] [(b) Promotion/ (c) Change of Position] Etsuhiko Shoyama Chairman Kazuo Furukawa Michiharu Nakamura President. in charge of Corporate Planning & Development. Business Incubation. Hitachi Group Chief Innovation Officer and Hitachi Group Chief Technology Officer Executive Vice President and Executive Officer.
TPS/Lean production 1. Constantly evolving • • • • Lean production is a theory-based but practice-driven theory based. practice driven innovation Increasingly applied in Western manufacturing. Built-in continuous improvement p 3. but understanding and i l d t di d implementation i th W t l t ti in the West lag behind in comparison to Japan The neglect of theory has slowed down the diffusion of lean manufacturing in the West for 15 – 20 years Focus on the transformation of mass manufacturing into lean manufacturing © Lauri Koskela 2009 . more efficient production. products production thanks to a more valid concept of production 2. 1 Leads to better products.
What is lean construction? © Lauri Koskela 2009 .
the whole project is completed in schedule • Budget: The total cost is decomposed with regard to individual work p g packages and tasks g – Decision rule: If each task is kept within its budgeted cost.The many uses of decomposition in construction • Work Breakdown Structure p • Gantt chart: the total duration is decomposed with regard to individual work packages and tasks – Decision rule: If each task keeps its start and end date. the whole project is completed in budget © Lauri Koskela 2009 .
and requires a reinterpretation of the theory ( p y (IGLC) ) © Lauri Koskela 2009 .Applicability of lean production to construction? • • Can the TPS be applied in construction? pp Two views – There are no hindrances in transferring methods and practices from car manufacturing to construction (example: Egan report in the UK) – Construction is fundamentally different from car manufacturing.
lean construction vs Lean manufacturing Lean construction ? © Lauri Koskela 2009 .Lean manufacturing vs.
.Task of three weeks in the construction schedule.. schedule Predicted. average output Outpu ut Week 1 Week 2 Week 3 Time © Lauri Koskela 2009 .
What happens in construction reality! Problems occurring during the task Problems related to starting the task Problems related to completing the task Output Week 1 Week 2 Week 3 Time © Lauri Koskela 2009 .
Critical path network: A task is started after the completion of the preceding task in the network (end-start relationship) (end start Preceding task (In site practice: A task should be started when the master schedule indicates that) Task © Lauri Koskela 2009 .
Last Planner: A task is started when all prerequisites at hand th d Preceding task Other inputs Task © Lauri Koskela 2009 .
Preconditions f a P diti for construction task Construction design Components and materials Workers Equipment Space p Connecting works External conditions Task © Lauri Koskela 2009 .
957 = 0. .“Assembly” tasks • Consider a task with one week duration. with seven prerequisites/input fl ith i it /i t flows • Let us assume that the reliability of each y input flow is 95 % during one week • The probability of having no deviation in any input flow during the week. 0. when starting and carrying out the task.70. © Lauri Koskela 2009 . is .
“Solution”: making-do Solution : making do • Congestion. out-of-sequence work. © Lauri Koskela 2009 . y multiple stops and starts. g oversizing of the crew. without the most suitable equipment for the task (due lack of planning and preparation). overtime. interruptions due to lack of materials. obstruction due to stocks of materials trying to cope materials. tools or instruction. p p . inability to do detailed planning in advance.
the waiting time for a part is negative © Lauri Koskela 2009 . or the execution of a task is continued although the availability of at least one standard input has ceased. Making do buffering.Making-do Making do • M ki d as a waste refers to a situation where Making-do t f t it ti h a task is started without all its standard inputs. but to all other inputs such as machinery tools machinery. instructions etc. external conditions. • Making-do is equivalent to negative buffering i. personnel. tools.e. ceased • The term input refers not only to materials.
In construction. making-do: working without all standard inputs at hand. instead of production management • Procurement of components by competitive bidding robs p y p g time from prefabrication • These phenomena lead to the increase of unreliability of task inputs and further to the waste of making do: inputs. in an improvised manner p • Making-do is the major waste to address in construction! © Lauri Koskela 2009 . multilayered. the impacts of T are partly different • A Acquiring d i b l i i design by lowest cost l d t erosion of f t t leads to i f fees and corner-cutting in design work • Subcontracting often multilayered leads to contract Subcontracting. management.
Features of Last Planner: recreating the ideal shape of a task Look ahead planning Making ready Continuous improvement Phase planning Checking task completion & Finding causes Conversation and co commitment t e t Outpu ut Week 1 Week 2 Week 3 Time © Lauri Koskela 2009 .
000 25% % 15% 5% Project 2 Project 3 Project 4 Project 8 Project 9 Project 1 Project 5 Project 6 Project 7 -5% -15% Bid Margin g Actual Margin g © Lauri Koskela 2009 .000 Realized Margin in total: $ 9.200.200.Graña y Montero – Peru’s biggest contractor Budgeted and realized margin in the first 9 projects where LP in use 45% 35% Budgeted M i i t t l 6 200 000 B d t d Margin in total: $ 6.
A contractor in Finland reports on using Last Planner™: p g Antti Husso: “Last Planner not only facilitates one's own work.org/ http://www leanconstruction org/ © Lauri Koskela 2009 . but especially improves the productivity on site.leanconstruction.” http://www.
Lean Construction • Ends – Elimination of making-do g – Lead time reduction (inventories. when applicable pp © Lauri Koskela 2009 . buffering) • M Means – Last Planner system of production control – Practices and methods in lean production.
Conclusion • F one-of-a-kind production and For f ki d d ti d construction. we need theory-based development of lean – manufacturing concepts do not cover all that is needed (although we increasingly find that manufacturing concepts are applicable in construction) © Lauri Koskela 2009 .
Issues of implementation © Lauri Koskela 2009 .
p g . contractual and organizational forms – from supply chain reorganisation • Rather/also the focus should be on: operational design.Where Should Change Start? • Gi Given th t construction cannot be changed overnight. the gg pp bigger the area of application © Lauri Koskela 2009 . even i a point i i l be d h in i t wise way – but the results are increasingly better. prefabrication and site production processes where the end product is created • L Lean principles can b used everywhere. that t ti tb h d i ht where should change start? • Mainstream approach: – from owners – “if only the owner…” Most often: upstream decisions and stages of construction.
Hitachi (Japan) © Lauri Koskela 2009 . p p y.Where should change start in a company? • F From the top. and teach it to . others. • Examples: Graña y Montero (Peru). from the managing th t f th i director who should be a teacher and mentor on lean for his subordinates • Liker’s Principle 9 in “The Toyota Way” p y y – Grow leaders who thoroughly understand the work. live the philosophy.
Thank You! Questions? Comments? © Lauri Koskela 2009 2008 .
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