© LEAN CONSTRUCTION INSTITUTE Lean in Design-Build © LEAN CONSTRUCTION INSTITUTE

Course Description Lean is increasingly being used in Design-Build project delivery and naturally supports and builds on the collaborative environment necessary for success in design-build. Learn how Lean naturally fits into design-build delivery and how you can integrate Lean into your design-build projects. The concepts of Big Room, Last Planner® System and Target Value Design are all integral to building successful teams that in turn deliver successful projects. Target value design is a key component in the growing application of Progressive Design Build to enhance the value proposition for owners.

Learning Objectives 01. 02. 03. 04. At the end of this presentation, participants will understand fundamental concepts of Lean design and construction including identification of waste, definition of value and importance of reliable and predictable flow on project outcomes. At the end of this presentation, participants will understand how Lean is particularly well-suited to use in Design-Build which accounts for 40% of non-residential projects. At the end of this presentation, participants will understand the fundamentals behind Design-Build done right as recommended by DBIA. At the end of this presentation, participants will understand how Lean reinforces Design-Build done right through an understanding of which Lean practices and tools align well with the objectives of Design-Build done right.

Lean Project Delivery System: Culture of respect and continuous improvement aimed at creating more value for the customer while identifying and eliminating waste. Lean Project Delivery System: An organized implementation of Lean Principles and Tools combined to allow a team to operate in unison to create flow.

Traditional Delivery Outcomes… Risk is high. Teamwork is unreliable. 70% of projects are delivered late. Customers are not satisfied. 73% of projects are over budget. Profit margins are shrinking. Rework and waste is high.

Correlation of Lean Intensity to Outcomes (% Likelihood on Best Projects) 3X 2X Slide Notes: Succeed as a Team   The results were as follows: High Value (Score 3): Last Planner System, Target Value Design, Full-team Onboarding, Visual Management, A3 Thinking, Conceptual/ Continuous Estimating, and Prefab/ Modularization Standard Practice (Score 0): Value Engineering, OAC Report-out Meetings and CPM Scheduling. When the researchers looked at the performance on schedule and budget, among respondents who were high intensity using many of these practices, especially practices that were flagged as particularly influential, they were three times more likely to complete their projects ahead of schedule and two times more likely to complete under budget. [Move to next slide] Page

Continuous Improvement (PDCA) Lean thinking demands a mindset of continuous improvement. Leaders must create an environment where experimentation is encouraged and small manageable failure is acceptable if the goal is to improve continuously.

Integrated Design-Build Team What is Design-Build? ONE CONTRACT for Design and Construction SINGLE POINT OF RESPONSIBILITY Integrated Design-Build Team Owner

Design-Build Done Right Faster 33% Faster than Design-Bid-Build 23% Faster than CM at Risk Penn State University | Construction Industry Institute Study Sanvido & Konchar

Design-Build Best Practices PROCUREMENT Focus heavily on qualifications rather than price Encourage early involvement of key specialty trade contractors Minimize use of prescriptive requirements Maximize use of performance-based requirements Limit proposal deliverables Use two-phase procurement process when asking for project-specific technical submittals Make conscious decisions about importance of design excellence, innovation and sustainability

Design-Build Best Practices CONTRACTING Proactively identify and address significant project-specific risks Reasonably allocate risks to party best capable of addressing and mitigating risk Use understandable contract language Encourage communications between parties Have a fair process for adjusting contract price and time

Design-Build Best Practices CONTRACTING Evaluate use of contract incentives Clearly identify performance guarantees Specify owner’s role during project execution Reporting and communication Design submittals Role, if any, in QA/QC

Design-Build Best Practices CONTRACTING Use written teaming agreements Regularly and actively involve designer-of-record throughout project execution Clearly identify role of design-builder’s team relative to design process Clearly establish how communications take place

Design-Build Best Practices EXECUTING DELIVERY Relationships built upon trust, transparency and team integration Individuals who are competent in their specific areas of expertise Individuals who understand how design-build process works Ability of entire team to work together collaboratively

Design-Build Best Practices EXECUTING DELIVERY Recognize the importance of collaboration and trusting relationships Use staff educated and experienced in design-build best practices Commit senior leadership that is supportive of design-build best practices

Design-Build Best Practices EXECUTING DELIVERY Co-locate owner and design-builder when justified by project characteristics Have design and construction teams working in same place as often as possible Ensure that staff understands administrative processes associated with project execution

Design-Build Best Practices EXECUTING DELIVERY Create an executive leadership group Collaborate on how to engage owner and key members of design-build team Develop processes to enable key stakeholders to participate Ensure that owner is fully engaged, educated, and ready to make the timely decisions

Design-Build Best Practices EXECUTING DELIVERY Acknowledge significant level of effort to manage development and review of design Dedicate sufficient resources to foster collaboration during design development Manage and document design changes and ensure owner is notified (or better yet, participates)

Big Room is: Mindset of intense focus on advancing work. Enables cross-functional team collaboration. Refers to the collaborative behavior of a team and the work they are producing. Implemented in design and construction phases. Big Room is a commitment to a project, the team, and to working together!

Big Room Benefits Improves collaboration through greater team interaction. Delivers a ‘higher performing facility’ on time and on budget. Allows team members to support each other and align themselves with the goals of the project. Breaks down the ‘silo’ mentality within the project.

Last Planner® System Benefits Improves communication & reliability. Fosters an enjoyable environment, trust, and collaboration. Promotes early stakeholder engagement. Improves visibility of the project plan (transparency). Creates team buy in. Rapid learning through metrics, revealing areas for improvement. Improves planning in both design & construction phases. Slide intended to be a definition of the Last Planner System and introduction to the benefits of using the Last Planner System. All of these will be discussed in further detail within the presentation so do not need to be greatly elaborated on during this slide.

TVD Culture TVD is to be applied holistically to obtain maximum value. Regardless of the project delivery framework, the owner, designers, builders, and key trades must be fully engaged from the onset. TVD is a culture of Lean thinking and approaches. The thinking is to find ways to drive value into the project YET drive costs out. Teams accomplish this by focusing on value, eliminating the waste in their processes and innovation. The term YET comes directly from Toyota (Toyota Way Chapter 5&6). “YET” puts conflicting ideas into tension (creative tension) which drives innovation.