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Linbeck Lean Project Delivery. ©Linbeck/Jose Solis - Proprietary & Confidential Slide 1 Introduction  Who I am not?  I am not a Lean consultant  I.

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Presentation on theme: "Linbeck Lean Project Delivery. ©Linbeck/Jose Solis - Proprietary & Confidential Slide 1 Introduction  Who I am not?  I am not a Lean consultant  I."— Presentation transcript:

1 Linbeck Lean Project Delivery

2 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 1 Introduction  Who I am not?  I am not a Lean consultant  I have nothing to sell and I am not being paid to be here  I am not an academic with a hypothesis to prove  Who am I?  President & CEO for Linbeck Group LLC  I am a builder; have never done anything else  I have a passion for the construction industry and finding ways to improve it

3 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 2 Lean Definition  What is Lean Construction? “Lean Construction is a set of ideas, practiced by individuals in the construction industry, based in the holistic pursuit of continuous improvements aimed at minimizing costs and maximizing value to clients in all dimensions of the built and natural environment: planning, design, construction, activation, operations, maintenance, salvaging, and recycling.”

4 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 3 Why?  Why did Linbeck start doing this more than 10 years ago? Competitive Reasons  Why should others do it? To survive!

5 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 4 Don’t We Do This Already?  Some say yes – Life is easy; they already have all the answers.  Those who say no - Should they feel compelled to do something about it?

6 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 5 Yes or No?  Not according to Government Statistics

7 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 6 Industry Reliability Model 50% 25% 10% 90% 75% Time start completion Construction Industry Norm Lost Opportunity Industry Wastes 40-50% Reliability

8 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 7 Construction Professional?  Do you think the best and brightest want to work this way?  Sounds like a career of endless issues and unnecessary risk.  Are you considered a professional because you survived it?

9 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 8 Value/Waste Relation VALUE WASTE PREDICTABILITY VARIABILITY

10 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 9 Waste Types: Discrete, Synergistic, Systemic 25 Discrete Waste (+) Synergistic Waste (x) (Affecting Stockholders) Systemic Waste (x n ) Project Delivery System – Contracts Systemic nature of the industry Project Breakdown Litigation (shift of value) Devalued Market National Debt

11 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 10 Lean Principles Lean Thinking seeks to eliminate waste in both schedule and budget, so projects are delivered faster - and more cost-effectively. The continuous application of the four steps above Define Client’s Value Map Value Stream Achieve Value Flow Respond to Pull Seek Perfection Actively understanding what is valuable to our clients in terms of budget, function, aesthetics, standards, and time Identifying the most effective sequence of activities to deliver the value defined by the client Eliminating unnecessary procedures to allow more work to be scheduled and executed Doing work only when needed - when it triggers downstream tasks that will advance the overall process

12 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 11 Lean Operating System

13 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 12 Quality Assurance

14 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 13 First Lean Principle Defining Value – What is valuable to your customer?

15 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 14 Cook Children’s Mission Cook Children’s Health Care System will improve the health of every child in our region through the prevention and treatment of illness, disease and injury

16 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 15  Reliability - Capital Cost Budgeting  Speed – Time to Market  Uptime - Patient Care Areas  Customer Satisfaction - Maximizing Positive Patient Outcomes  Controlling Infection – Safe Environment for Healthcare  Cost – Leveraging Market Knowledge, Community Reputation & Fairness  Quality - Focusing on Long Term Facility Management, Operations & Maintenance at Lower Cost  Community Service – Support CCMC community mission First Principle – Defining Value to CCMC

17 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 16 Risk to Meet Owner Goals Removes the perceived conflict of interest in determining the Guaranteed Maximum Cost (GMP) of the project Prevents focusing on cost only, since the Client also has safety, quality, schedule, and functionality goals Decreases motivation to argue over minor changes, since there is no economic interest in increasing the contract amount

18 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 17 Second Principle – Map the Value Stream How we create value by removing discrete waste Value Stream

19 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 18  The right process will produce the right results  Continuously experiment and improve the process  Define Value, Map Value Stream  Engages stakeholders Lean Principles

20 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 19 Value Stream of Capital Project Delivery Updated based on decisions in Feb 08 See Definition VS for Projects See April 08 Board Package 4/15/18 See Feb 08 Board Package Recap

21 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 20 Linbeck Sponsored Insured Program (LSIP)

22 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 21 Project Scope Waste Typical Bridge Work Structure Owner Identify Bridge Criteria Architect / Engineer Builder Design Bridge Components Bid Erection and Enclosure Manage Operations Disruption Award Trade Contracts Manage Patient Dissatisfaction Manage Inefficient Work Subcontractor Quote Fabricate Bridge Steel Close Entrance to Emergency Room Close Street Erect Bridge Pieces 14 days Open One-Half Street Enclose One-Half Bridge 14 Days Close One- Half Street Enclose Last One- Half Bridge 14 Days Open Street and Emergency Entrance after 42 Days Legend Contractual Relationship Closing ER entrance for 42 days

23 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 22 Linbeck’s Lean Process Keeps ER Entrance Open Legend Contractual Relationship Architect / Engineer Builder Subcontractor Provide Constructability & Manage Client Expectations Owner Identifies Process Expectations (Value) Minimize Disruption Of Bridge Construction Identify Bridge Criteria Close Emergency Room Entrance One-Half Day Determine Design Options to Accommodate Less Intrusive Bridge Plan Design Temp Supports and Lifting Requirements Bid Assembled On Ground Bridge Erection Quote Fabricate Steel Award Trade Contracts Drill Temp Piers 7 Days Erect Bridge on Ground 7 Days Assemble Enclosure on Ground 14 Days Close Street Erect Bridge One-Half Day Open Street and Emergency after One-Half Day Design Bridge Components Closing ER entrance for half day

24 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 23 Third Principle – Achieving Flow  Achieve flow by removing synergistic waste creating reliability with organization that addresses product needs Flow

25 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 24 Integrated Project Team Specialty Consultant Integrated Project Team Utilizing TeamBuild ® Approach Owner Direct Contractor CMR – Linbeck Engineer Architects FF&E Vendors Specialty Consultant CCMC Owner Linbeck Project Manager INTEGRATIONINTEGRATION

26 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 25 Organizational Alignment

27 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 26 Owner Linbeck Risk Architect & Engineer Core Specialty Contractors Integrated Project Team INTEGRATIONINTEGRATION

28 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 27  Create the right “flow”  Involve the right people at the right time  Allocation of responsibility and authority  Create clarity  Map out the process and the value stream “WHAT”“HOW” Implementation of BIM in the LOS

29 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 28 Fast BIM Tools Early Procurement Communicating via Model Qualifying Trades GMP at SD Fast BIM Tools Early Procurement Communicating via Model Qualifying Trades GMP at SD Lean BIM Tools

30 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 29 Fourth Principle - Responding to Pull  Respond to pull by doing work at the last responsible moment  Use pull driven approach  Define what is needed  Create what is defined  Not more  Execute flawlessly

31 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 30 Using Tools – Pull Schedule

32 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 31 Responding to Pull Pull Built-Up AHU’s - Design Through Construction Below Grade Access “Last Opportunity ” “Stored” in Location in Assembled Sections-Protected Shipped in “Larger” Sections “Shrink Wrapped”

33 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 32 Percent Plan Complete Chart – Seeking Perfection Baylor College of Medicine

34 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 33 Cumulative Root Causes Trend of Unsatisfied Schedule Items

35 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 34 Using Tools – Last Planner 50% 25% 10% 90% 75% Time startcompletion Construction Industry Norm Saves Time (10-20%) Saves $ (3-10%) When Reliability Increases Reliability LOS

36 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 35 Where Are We Going? – Remove Systemic Waste With an ever-changing economy Problem: Solution:

37 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 36 Systemic Waste  Project Delivery System – Contracts  Systemic nature of industry  Project breakdown  Litigation (shift of value)  Overcome Devalued Market  Overcome National debt Remove with IPD agreements/relationships

38 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 37

39 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 38 Waste Types: Discrete, Synergistic, Systemic 25 Discrete Waste (+) Synergistic Waste (x) (Affecting Stockholders) Systemic Waste (x n ) Project Delivery System – Contracts Systemic nature of the industry Project Breakdown Litigation (shift of value) Devalued Market National Debt

40 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 39 Integrated Project Delivery 50% 25% 10% 90% 75% Time startcompletion Construction Industry Norm Saves Time (10-20%) Saves $ (3-10%) When Reliability Increases Reliability LOS IPD

41 ©Linbeck/Jose Solis - Proprietary & Confidential Slide 40 Questions?


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