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Lean Project Management
David Butcher and Steve Pearson
Outline of Presentation



• Overview of Lean Project Management
• Lean Project Management in the Highways
  Agency
• Lean Project Management in construction
• Lean Project Management Tools
Lean History


From Mass Production …
1860s Mass production of armaments and clothing


Early 1900s Beginning of the development of statistical methods of analysis


1920s Ford – time and motion studies


1930s GM – choice based on complicated forecasts and big batches


1950s worldwide – mass production, lower costs but waste evident


1960s Motorola – Six Sigma process method for analysis of variation
Lean History



… 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


1970s Six Sigma methods incorporated in the “Toyota Way”


1980s The “Toyota Way” begins the development of Lean


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?


•   Workflows kept simple, eliminate complexity where possible
•   Strive for error prevention rather than constant checking
•   Minimise work in progress, queues and delays
•   Provide what is required, not what you think is customer demand
•   People work in self-managed teams to deliver a first class service
•   Active involvement of everyone in the improvement process
•   Focus on processes not individual tasks


    The overriding emphasis is the focus on adding
    value and removing waste
The four ‘P’s of Lean:


                           People & Partners                      Philosophy
                           Building a solid relationship          Following a
                           with our partners in order to          philosophy of long
                           fully integrate our work               term sustainable
                           process.                               improvement.

                                             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’?


• This is not rocket science – and it is not magic
• Yes, it is common sense, but it’s a system which has
  been tried and tested, and has been proven to be
  workable.
• It scrutinises the way that people do things and
  identifies very specifically those things which cause
  unnecessary interruptions to the way that work
  progresses.
• CLOTHES HORSE
The 8 Wastes


    Lean classifies different kinds of waste which
    prevent streamlining.
•   Transport (of materials, equipment)
•   Inventory (overstocking, understocking, or damage of materials)
•   Motion (Design of material flow)
•   Waiting (e.g. waiting for signatures)
•   Over-processing (handling something more times than is necessary)
•   Overproduction (creating a system which produces too many items)
•   Defects (e.g. production defects through any means)
•   Skills (This was added later to the Acronym due to the realisation that training
    etc. was essential for all the others to be found and eliminated)
    Acronym: TIM WOODS
Lean differs from conventional thought with its
                              ideas of ‘push’ and ‘pull’

Push: Making product before the customer demands it
  – mass production in advance of order


Pull: Creation of product is triggered by the customer
  – one piece flow stimulated by order

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?


• Lean project management will free up valuable time for
  staff by removing actions which add no value.


• It will reduce the frustration which may come from
  aspects of work which are not felt to be necessary.


• It will allow staff to attend to those tasks which are the
  most productive.
How Lean impacts the bottom line


• 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

 Transportation                               Inventory                                Motion
•Retrieving or storing files                  •Open projects                           •Handoffs

•Going to the printer                         •E-mails unread                          •Extra key strokes

•Carrying or posting paperwork                •Office supplies                         •Going to get signatures

                                              •Unused records in database              •Searching for files / handling paperwork

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



Over-Production                                        Skills Misuse
•A system which calls for extra copies
                                                      •Not using people to their full potential
•A system which continues to create reports
which are no longer read
What characteristics does a Lean organisation have?



                  Problem Solving
             (continuous improvement and learning)



                         Process
                       (eliminate waste)



               People and Partners
                (respect, challenge and develop)



             Philosophy and Purpose
                     (long-term thinking)
It’s about getting more (or the same) for less by
empowering people to ensure we are doing the
            right thing the right way!
Summary



• Lean is a way of thinking
• Lean aims to come closer and closer to providing
  customers with what meets their need/s
• At the heart of Lean are flexible, motivated team
  members continuously solving problems
• Lean is about continuous improvement, the path doesn’t
  end
Outline of Presentation



• Overview of Lean Project Management
• Lean Project Management in the Highways
  Agency
• Lean Project Management in construction
• Lean Project Management Tools
Lean Delivery in HA – History



• Nichols Review (March 2007) highlighted
   – need to improve delivery of value

• Lean Pilot studies over last 3 years
   – M6 Extension Carlisle to Guards Mill

• HA Lean Delivery Team established (April 2009)
   – supported by Mott MacDonald

• Target of £66m savings for HA in 2010/11 (April 2010)
Lean Delivery in HA – 3 Year Plan
Extracts from HA Presentation (2nd November)




Better Outcomes In Tougher Times

Derek Drysdale –Division Director Lean Improvement
Highways Agency
CSR Outcomes



• 2009 – White paper on roads programme for next six years
• In the CSR, Chancellor George Osborne revealed £83bn of cuts
• Transport funding will fall by 15% over the next 4 years
• Expenditure on new infrastructure down 11% over the period
    – HA cash budget £2500m in 2011/12 declining to £2000m in each subsequent year
    – Reduction of over 20% - a challenging budget!
    – Emphasis on asset repair, life extension, renewal at lowest initial cost or short term cost
“Lean Genome” (the blueprint of common sense)


                 People capability               Lean Daily
 Leadership                                     Management
                    5S          Process Focus
                                                      Standardise




              Customer value                      Visual
                               Collaborative    Management
Strategy
                                 Planning          Process Control
           Off site build
HA Major Projects


•   M25 Bell Common Tunnel: Lean techniques contributed saved
    £5.8m
•   M1 25 to 28: Collaborative Planning contributed to delivery
    ahead of programme
•   M1 10 to 13: Greater productivity on sheet piling and sheet
    nailing
•   A1 Dishforth: Daily asphalt laying rate increased from 1000t to
    2000t
•   M40 J15: 6-12 days saved on original 42 day surfacing
    programme
•   A421: Increased blacktop production saved £2 a tonne for
    40,000t
•   A46: Earthworks efficiency activity creating a potential saving of
    up to £7.5m on the project
Knowledge Transfer


Lean practitioners develop a Knowledge Transfer Pack to capture
lessons learned and ensure benefits can be applied to other schemes
(Mott MacDonald developed the KTP methodology for the HA)
Outline of Presentation



• Overview of Lean Project Management
• Lean Project Management in the Highways
  Agency
• Lean Project Management in construction
• Lean Project Management Tools
Outline of Presentation



• Overview of Lean Project Management
• Lean Project Management in the Highways
  Agency
• Lean Project Management in construction
• Lean Project Management Tools
A46 Newark to Widmerpool
Knowledge Transfer Pack




                           30
Background and Objectives – Project Options




           Extending earthworks season              Earthworks 100% dry day output


                                                                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



           Low         Ease of Implementation                            High
Background and Objectives – Definitions



Achieve maximum output in dry weather for earthworks
  Deliverables:
  •   Maximum achieved on any given day
  •   Resource efficiency
  Success:
  •   Completion
Current Earthworks Process

The current process was examined during High Level Process Mapping and was
not previously defined.

The Earthworks sub contractor (John Jones), operating with a programme,
resourced and planned the works with fluctuating resources as they deemed
necessary. “Trial and error” (their words) and conservation of resource
(excavator, trucks etc) was the approach

John Jones is operating on an Open Book contract using Target Costs




                                                                      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

Initially the Team were sceptical about meaningful variation

However Mott MacDonald’s finding in the Analyse stage identified significant
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%” (words from the contractor
                                      5%
      PD)
    – However analysis showed excavators were idle much more than this
Earthworks Process Implementation         October 5




                  Down Time   Down Time
                     4%         24%




                    Loading     Loading
                   Time 96%    Time 76%
Earthworks Process Implementation          October 5
                      Excavator Down Time 5 October
Earthworks Process Implementation            October 12

          Excavator Down Time 12 October

                                       Excavator KOM PC450
                                       was engaged in Spreading
                                       for much of this
                                       observation period,
                                       however a significant
                                       portion of excavator down
                                       time was due to a lack of
                                       availability of trucks
Earthworks Process Implementation                                    October 12

Causes for Downtime
•   The major cause for down time observed on the 12 October was identified as
    being insufficient Trucks for 2 Excavators
•   No additional trucks were introduced to maintain the programmed work output
    and thus Excavators were left idle




               This highlights the importance of ensuring
              the number of trucks on the site is sufficient
                               at all times
Earthworks Process Implementation
Run Time October 5                        Run Time 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




                                                             Potential to add
            We can see that the number of trucks did not
            always adequately cater to the Haul Length       extra trucks to
                                                           balance haul length
Earthworks Process Potential Savings

The remaining amount of earthworks is 1.38M m3. If a similar
regime of optimising the trucks was adopted the earthworks
programme could potentially be shortened by 113 days. Using the
same method of calculation the costs for the optimised teams
would be:                                              Potential saving of
                    Un-optimised      Optimised               £201,809
                                                           equipment costs
  Days                  416              303                     Plus
  Total Cost
                                                              113 days
                     £2,462,289       £2,260,479            overhead costs
Fully optimised process (including excess trucks) has potential
saving of £7,130,000
Outline of Presentation



• Overview of Lean Project Management
• Lean Project Management in the Highways
  Agency
• Lean Project Management in construction
• Lean Project Management Tools
Lean Tools



A3 Problem Solving and Reports
Affinity Diagrams
                                                Pareto Chart
Cause and Effect Diagram
                                                      PDCA
Chi Squared analysis
                                            Process Mapping
Intervention
                                             Process Review
Kaizen
                                                     SIPOC
Five Whys
FMEA                             Visual Management System
                                 Voice of the Customer (VOC)
Some of the basic tools



• 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

• ‘Pull’ not ‘push’
   – value to the customer (e.g. Releasing work only when ‘pulled’ i.e. through
     demand)
Visual Management System


4 elements
•   Primary Visual Display (PVD)
•   Regular Team Meetings
•   Action Sheet System

•   Short Interval Leadership

    Every team can create its own VMS
    – The frequency of meetings is agreed by the team
    –   For individual projects, daily is often best
    –   Agree a frequency to start and change it as necessary
Examples of Primary Visual Displays
VMS – Benefits



• Improves team communication
• Focuses on daily performance
• Encourages improvement ideas
• Captures small issues early and regularly
• Builds and embeds a continuous improvement culture
Collaborative Planning



The Traditional Approach to Planning

The Plan
      • Main Contractor/Planning dept does the plan
      • Imposed on the contractors
      • Contractors plan site work individually and
        independently
Collaborative Planning



The Traditional Approach to 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


The Traditional Approach to 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?

        What are the results of this?
The effect buffer on the Plan


    Plan for 1 floor of the hotel construction project
                          Estimated
                          Duration
    Boarding                2 days               ½                                                                        Plan
                                      1½ days
                                                day                                                                  (each floor has
                                                                                                                       12 rooms)       Elevation
Electrician   1st   fix                                                 1                                                   Theoretical
                             3 days                       2 days
                                                                       day
                                                                                                                       completion time if
                                                                                                                       all buffer is moved
                                                                               ¾   ¼                                    to the end of the
   Plumbing                  1 day                                            day day                                  plan = 7¾ days or
                                                                                                                           17¾ days to
                                                                                                                          complete all 6
   Plastering                3 days                                                                   1                       floors
                                                                                        2 days
                                                                                                     day


 Painting 1st coat           1 day                                                                          ¾  ¼
                                                                                                           day day

Electrician 2nd fix         1 day                                                                                     ¾  ¼
                                                                                                                     day day



                                          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


    Plan for 1 floor of the hotel construction project
                      Estimated
                      Duration
    Boarding            1½ days   1½ days                                                                              Plan
                                                                                                                  (each floor has
                                                                                                                    12 rooms)        Elevation
Electrician 1st fix      2 days                 2 days
                                                                                                                         Theoretical
                                                                                                                    completion time if
                                                                                                                    all buffer is moved
                                                              ¾
   Plumbing              ¾ day                               day
                                                                                                                     to the end of the
                                                                                                                    plan = 7¾ days or
                                                                                                                        17¾ days to
                                                                     2 days                                            complete all 6
   Plastering            2 days                                                                                            floors

                                                                                   ¾
 Painting 1st coat       ¾ day                                                    day



Electrician 2nd fix                                                                      ¾   ½         1    ¼      1      ¼ ¼
                        ¾ day                                                                                             day day
                                                                                        day day       day   day   day




                                      1     2            3     4     5        6         7         8         9        10         11         12


             buffer
Collaborative Planning – Objectives



•   The team establish a collaborative programme
•   The programme is stabilised and uncertainty removed
•   Utilise the team’s skills and experience
•   Identify potential risks and opportunities
•   Identify issues and common interface problems and collectively resolve
    these
•   Produce forward plans and identify mobilisation needs
•   Increase predictability of activity and project completion
Programme Planning in Action


            Detailed Project Plan

                                     Designer




Trades

            Sub-Contractor          Architect
Implementing 5S in the Workplace
The 5S Process


              What is needed for work? What is not needed?

                                      Sort

Don’t stop!                                                                  “A place for
Make 5S a     Sustain                                  Straighten          everything and


                                  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)



                The 5Ss are an approximate translation from Japanese
Implementing 5S in the Workplace
The Six Sigma Process – DMAIC

•   Business Case/ PIP Team             Define
•   Problem Statement / Objective       What is the process improvement opportunity ?
•   Primary / Secondary Metrics         What is the scope of the problem ?
•   Voice of the Customer (VOC)         Who’s involved / affected ?
•   Process mapping
•   Cause and effect analysis           Measure
•   XY Matrix, FMEA                     What does the process look like ?
•   Data Collection                     How is the process performing today ?
•   Capability Analysis                 What are the primary causes of failure ?

•   Graphical data analysis
•   Statistical analysis                Analyse
•   Correlation (X/Y)                   Where and when do defects occur ?
•   DCOM

•   Quick wins/ solutions
•   Simulation                          Improve
•   Design of Experiments               How can we optimise improvements ?
•   Select best solutions

• 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

                                                            Documents get lost
                                                                                                                                              No universal
                                                                                                                                           documented procedure
                                                               no standard copy to list
                                                                                                                                                                  '
                                                            sits in the in-tray                                                                too busy “doing” rather than recording
                      Misunderstanding
                                                                                                    Not a KPI
                                                                            Misunderstand
   Do not understand the shorthand                                           intention of
                                                                              comments                                                         Original due dates tight

                             trying to be too succinct
                                                                                                                                                                       Reduce
                                                                                                                                                                     submission
                                                                                                                Different reviewers                                  review time
                             Different disciplines                                                                                          different types
         people not always available                                                        No common method of
                                                                                                                                              Variable content
                                                                                                 comments
                    Lack of dedicated
                        resources                                                         Delay in receiving
                                                                                                                                                 no set standards
                Can not use people 100%                                                      documents
                                                                                                                                               projects vary
    Do not know level of review                                                                                                Variable quality

Because “review” is open ended                                             save wasting people’s time
need to find out what is important                                                                                                lack of understanding
                                                                        decided by SW                                          sloppy
  Lack of customer
      feedback                                           Specialists do not know when
                                                            documents are coming
                          PEOPLE                                                           DOCUMENTS
Failure Mode and Effects Analysis (FMEA)




Potential Failure                        S      Potential       O                      D   R
                    Potential Failure                               Current Process
Modes (process                           E      Causes of       C                      E   P
                      Effects (Ys)                                     Controls
    defects)                             V     Failure (Xs)     C                      T   N



                    Lack of visibility           Design
Does not include      of what the              deliverable           Audit at end of
                                         8                      9                      9   648
detailed design      Contractor is            requirements          implementation
                    going to supply          not prescriptive


                                             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.




     for highways sector
                                                                                                                                                    trucks were available for loading. Lean analysis
                                                                                                                                                    showed that, over the study period alone,             As earthmoving operations advanced, increasing
                                                                                                                                                    optimising truck movements would have enabled         the length of the haul road, the number of trucks
                                                                                                                                                    128 extra ‘truck days’, moving 40,890cu.m more        was steadily increased to account for the greater
                                                                                                                                                    earth and saving nine days against programme.         time taken to pick up a load, transport it to the
                                                                                                                                                    The cost of additional truck hire would have been     dump site and return for another load. Account
                                                                                                                                                    outweighed by savings on excavator hire, delivering   was also taken of delays due to plant crossings,
                                                                                                                                                    £20,000 net benefit. Of far greater significance,     mechanical breakdowns, maintenance of haul

                  We’re enabling the UK Highways
        HOW WE’RE aDDinG value                                                                                                                      the benefit to the project of early earthworks
                                                                                                                                                    completion would have been almost £680,000.
                                                                                                                                                                                                          roads and haul road congestion, as well as time
                                                                                                                                                                                                          taken to clear stuck mud from the dump truck skip.

      Agency to realise efficiencies of nearly a third using
      a process improvement system known as Lean.

                                 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.”


      6 Mott MacDonald                                                                                                                                                                                                                                         www.mottmac.com 7
United Kingdom




      £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


      8 Mott MacDonald                                                                                                                                                                                                                                                                                         www.mottmac.com 9

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Lean Project Management

  • 1. Lean Project Management David Butcher and Steve Pearson
  • 2. Outline of Presentation • Overview of Lean Project Management • Lean Project Management in the Highways Agency • Lean Project Management in construction • Lean Project Management Tools
  • 3. Lean History From Mass Production … 1860s Mass production of armaments and clothing Early 1900s Beginning of the development of statistical methods of analysis 1920s Ford – time and motion studies 1930s GM – choice based on complicated forecasts and big batches 1950s worldwide – mass production, lower costs but waste evident 1960s Motorola – Six Sigma process method for analysis of variation
  • 4. Lean History … 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 1970s Six Sigma methods incorporated in the “Toyota Way” 1980s The “Toyota Way” begins the development of Lean 1990s Worldwide all major blue chip manufacturers have adopted Lean
  • 5. 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
  • 6. 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.
  • 7. What does Lean look like? • Workflows kept simple, eliminate complexity where possible • Strive for error prevention rather than constant checking • Minimise work in progress, queues and delays • Provide what is required, not what you think is customer demand • People work in self-managed teams to deliver a first class service • Active involvement of everyone in the improvement process • Focus on processes not individual tasks The overriding emphasis is the focus on adding value and removing waste
  • 8. The four ‘P’s of Lean: People & Partners Philosophy Building a solid relationship Following a with our partners in order to philosophy of long fully integrate our work term sustainable process. improvement. Problem Solving End to end Process Making the Continually improving most of staff processes to deliver value experience, efficiently and effectively. knowledge & ingenuity.
  • 9. Isn’t Lean just another word for ‘Common Sense’? • This is not rocket science – and it is not magic • Yes, it is common sense, but it’s a system which has been tried and tested, and has been proven to be workable. • It scrutinises the way that people do things and identifies very specifically those things which cause unnecessary interruptions to the way that work progresses. • CLOTHES HORSE
  • 10. The 8 Wastes Lean classifies different kinds of waste which prevent streamlining. • Transport (of materials, equipment) • Inventory (overstocking, understocking, or damage of materials) • Motion (Design of material flow) • Waiting (e.g. waiting for signatures) • Over-processing (handling something more times than is necessary) • Overproduction (creating a system which produces too many items) • Defects (e.g. production defects through any means) • Skills (This was added later to the Acronym due to the realisation that training etc. was essential for all the others to be found and eliminated) Acronym: TIM WOODS
  • 11. Lean differs from conventional thought with its ideas of ‘push’ and ‘pull’ Push: Making product before the customer demands it – mass production in advance of order Pull: Creation of product is triggered by the customer – one piece flow stimulated by order 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
  • 12. 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
  • 13. How would using Lean impact on me/my team/ my directorate? • Lean project management will free up valuable time for staff by removing actions which add no value. • It will reduce the frustration which may come from aspects of work which are not felt to be necessary. • It will allow staff to attend to those tasks which are the most productive.
  • 14. How Lean impacts the bottom line • Do More… – World class customer service – Improved quality – Speeding up the programme – Improved working environment
  • 15. 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
  • 16. The 8 Wastes- TIM WOODS Transportation Inventory Motion •Retrieving or storing files •Open projects •Handoffs •Going to the printer •E-mails unread •Extra key strokes •Carrying or posting paperwork •Office supplies •Going to get signatures •Unused records in database •Searching for files / handling paperwork 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 Over-Production Skills Misuse •A system which calls for extra copies •Not using people to their full potential •A system which continues to create reports which are no longer read
  • 17. What characteristics does a Lean organisation have? Problem Solving (continuous improvement and learning) Process (eliminate waste) People and Partners (respect, challenge and develop) Philosophy and Purpose (long-term thinking)
  • 18. It’s about getting more (or the same) for less by empowering people to ensure we are doing the right thing the right way!
  • 19. Summary • Lean is a way of thinking • Lean aims to come closer and closer to providing customers with what meets their need/s • At the heart of Lean are flexible, motivated team members continuously solving problems • Lean is about continuous improvement, the path doesn’t end
  • 20. Outline of Presentation • Overview of Lean Project Management • Lean Project Management in the Highways Agency • Lean Project Management in construction • Lean Project Management Tools
  • 21. Lean Delivery in HA – History • Nichols Review (March 2007) highlighted – need to improve delivery of value • Lean Pilot studies over last 3 years – M6 Extension Carlisle to Guards Mill • HA Lean Delivery Team established (April 2009) – supported by Mott MacDonald • Target of £66m savings for HA in 2010/11 (April 2010)
  • 22. Lean Delivery in HA – 3 Year Plan
  • 23. Extracts from HA Presentation (2nd November) Better Outcomes In Tougher Times Derek Drysdale –Division Director Lean Improvement Highways Agency
  • 24. CSR Outcomes • 2009 – White paper on roads programme for next six years • In the CSR, Chancellor George Osborne revealed £83bn of cuts • Transport funding will fall by 15% over the next 4 years • Expenditure on new infrastructure down 11% over the period – HA cash budget £2500m in 2011/12 declining to £2000m in each subsequent year – Reduction of over 20% - a challenging budget! – Emphasis on asset repair, life extension, renewal at lowest initial cost or short term cost
  • 25. “Lean Genome” (the blueprint of common sense) People capability Lean Daily Leadership Management 5S Process Focus Standardise Customer value Visual Collaborative Management Strategy Planning Process Control Off site build
  • 26. HA Major Projects • M25 Bell Common Tunnel: Lean techniques contributed saved £5.8m • M1 25 to 28: Collaborative Planning contributed to delivery ahead of programme • M1 10 to 13: Greater productivity on sheet piling and sheet nailing • A1 Dishforth: Daily asphalt laying rate increased from 1000t to 2000t • M40 J15: 6-12 days saved on original 42 day surfacing programme • A421: Increased blacktop production saved £2 a tonne for 40,000t • A46: Earthworks efficiency activity creating a potential saving of up to £7.5m on the project
  • 27. Knowledge Transfer Lean practitioners develop a Knowledge Transfer Pack to capture lessons learned and ensure benefits can be applied to other schemes (Mott MacDonald developed the KTP methodology for the HA)
  • 28. Outline of Presentation • Overview of Lean Project Management • Lean Project Management in the Highways Agency • Lean Project Management in construction • Lean Project Management Tools
  • 29. Outline of Presentation • Overview of Lean Project Management • Lean Project Management in the Highways Agency • Lean Project Management in construction • Lean Project Management Tools
  • 30. A46 Newark to Widmerpool Knowledge Transfer Pack 30
  • 31. Background and Objectives – Project Options Extending earthworks season Earthworks 100% dry day output 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 Low Ease of Implementation High
  • 32. Background and Objectives – Definitions Achieve maximum output in dry weather for earthworks Deliverables: • Maximum achieved on any given day • Resource efficiency Success: • Completion
  • 33. Current Earthworks Process The current process was examined during High Level Process Mapping and was not previously defined. The Earthworks sub contractor (John Jones), operating with a programme, resourced and planned the works with fluctuating resources as they deemed necessary. “Trial and error” (their words) and conservation of resource (excavator, trucks etc) was the approach John Jones is operating on an Open Book contract using Target Costs 33
  • 34. 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 Initially the Team were sceptical about meaningful variation However Mott MacDonald’s finding in the Analyse stage identified significant variation 34
  • 35. 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%” (words from the contractor 5% PD) – However analysis showed excavators were idle much more than this
  • 36. Earthworks Process Implementation October 5 Down Time Down Time 4% 24% Loading Loading Time 96% Time 76%
  • 37. Earthworks Process Implementation October 5 Excavator Down Time 5 October
  • 38. Earthworks Process Implementation October 12 Excavator Down Time 12 October Excavator KOM PC450 was engaged in Spreading for much of this observation period, however a significant portion of excavator down time was due to a lack of availability of trucks
  • 39. Earthworks Process Implementation October 12 Causes for Downtime • The major cause for down time observed on the 12 October was identified as being insufficient Trucks for 2 Excavators • No additional trucks were introduced to maintain the programmed work output and thus Excavators were left idle This highlights the importance of ensuring the number of trucks on the site is sufficient at all times
  • 40. Earthworks Process Implementation Run Time October 5 Run Time 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
  • 41. Earthworks Process Optimisation Excess Trucks sitting idle Potential to add We can see that the number of trucks did not always adequately cater to the Haul Length extra trucks to balance haul length
  • 42. Earthworks Process Potential Savings The remaining amount of earthworks is 1.38M m3. If a similar regime of optimising the trucks was adopted the earthworks programme could potentially be shortened by 113 days. Using the same method of calculation the costs for the optimised teams would be: Potential saving of Un-optimised Optimised £201,809 equipment costs Days 416 303 Plus Total Cost 113 days £2,462,289 £2,260,479 overhead costs Fully optimised process (including excess trucks) has potential saving of £7,130,000
  • 43. Outline of Presentation • Overview of Lean Project Management • Lean Project Management in the Highways Agency • Lean Project Management in construction • Lean Project Management Tools
  • 44. Lean Tools A3 Problem Solving and Reports Affinity Diagrams Pareto Chart Cause and Effect Diagram PDCA Chi Squared analysis Process Mapping Intervention Process Review Kaizen SIPOC Five Whys FMEA Visual Management System Voice of the Customer (VOC)
  • 45. Some of the basic tools • 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
  • 46. 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 • ‘Pull’ not ‘push’ – value to the customer (e.g. Releasing work only when ‘pulled’ i.e. through demand)
  • 47. Visual Management System 4 elements • Primary Visual Display (PVD) • Regular Team Meetings • Action Sheet System • Short Interval Leadership Every team can create its own VMS – The frequency of meetings is agreed by the team – For individual projects, daily is often best – Agree a frequency to start and change it as necessary
  • 48. Examples of Primary Visual Displays
  • 49. VMS – Benefits • Improves team communication • Focuses on daily performance • Encourages improvement ideas • Captures small issues early and regularly • Builds and embeds a continuous improvement culture
  • 50. Collaborative Planning The Traditional Approach to Planning The Plan • Main Contractor/Planning dept does the plan • Imposed on the contractors • Contractors plan site work individually and independently
  • 51. Collaborative Planning The Traditional Approach to 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
  • 52. Collaborative Planning The Traditional Approach to 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? What are the results of this?
  • 53. The effect buffer on the Plan Plan for 1 floor of the hotel construction project Estimated Duration Boarding 2 days ½ Plan 1½ days day (each floor has 12 rooms) Elevation Electrician 1st fix 1 Theoretical 3 days 2 days day completion time if all buffer is moved ¾ ¼ to the end of the Plumbing 1 day day day plan = 7¾ days or 17¾ days to complete all 6 Plastering 3 days 1 floors 2 days day Painting 1st coat 1 day ¾ ¼ day day Electrician 2nd fix 1 day ¾ ¼ day day 1 2 3 4 5 6 7 8 9 10 11 12 buffer
  • 54. 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
  • 55. The effect buffer on the Plan Plan for 1 floor of the hotel construction project Estimated Duration Boarding 1½ days 1½ days Plan (each floor has 12 rooms) Elevation Electrician 1st fix 2 days 2 days Theoretical completion time if all buffer is moved ¾ Plumbing ¾ day day to the end of the plan = 7¾ days or 17¾ days to 2 days complete all 6 Plastering 2 days floors ¾ Painting 1st coat ¾ day day Electrician 2nd fix ¾ ½ 1 ¼ 1 ¼ ¼ ¾ day day day day day day day day 1 2 3 4 5 6 7 8 9 10 11 12 buffer
  • 56. Collaborative Planning – Objectives • The team establish a collaborative programme • The programme is stabilised and uncertainty removed • Utilise the team’s skills and experience • Identify potential risks and opportunities • Identify issues and common interface problems and collectively resolve these • Produce forward plans and identify mobilisation needs • Increase predictability of activity and project completion
  • 57. Programme Planning in Action Detailed Project Plan Designer Trades Sub-Contractor Architect
  • 58. Implementing 5S in the Workplace
  • 59. The 5S Process What is needed for work? What is not needed? Sort Don’t stop! “A place for Make 5S a Sustain Straighten everything and 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) The 5Ss are an approximate translation from Japanese
  • 60. Implementing 5S in the Workplace
  • 61. The Six Sigma Process – DMAIC • Business Case/ PIP Team Define • Problem Statement / Objective What is the process improvement opportunity ? • Primary / Secondary Metrics What is the scope of the problem ? • Voice of the Customer (VOC) Who’s involved / affected ? • Process mapping • Cause and effect analysis Measure • XY Matrix, FMEA What does the process look like ? • Data Collection How is the process performing today ? • Capability Analysis What are the primary causes of failure ? • Graphical data analysis • Statistical analysis Analyse • Correlation (X/Y) Where and when do defects occur ? • DCOM • Quick wins/ solutions • Simulation Improve • Design of Experiments How can we optimise improvements ? • Select best solutions • Implementation/Control Plans • PBL tools to sustain gains Control • Establish Process Management System What controls can be put in place to sustain gain ?
  • 62. 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 Documents get lost No universal documented procedure no standard copy to list ' sits in the in-tray too busy “doing” rather than recording Misunderstanding Not a KPI Misunderstand Do not understand the shorthand intention of comments Original due dates tight trying to be too succinct Reduce submission Different reviewers review time Different disciplines different types people not always available No common method of Variable content comments Lack of dedicated resources Delay in receiving no set standards Can not use people 100% documents projects vary Do not know level of review Variable quality Because “review” is open ended save wasting people’s time need to find out what is important lack of understanding decided by SW sloppy Lack of customer feedback Specialists do not know when documents are coming PEOPLE DOCUMENTS
  • 63. Failure Mode and Effects Analysis (FMEA) Potential Failure S Potential O D R Potential Failure Current Process Modes (process E Causes of C E P Effects (Ys) Controls defects) V Failure (Xs) C T N Lack of visibility Design Does not include of what the deliverable Audit at end of 8 9 9 648 detailed design Contractor is requirements implementation going to supply not prescriptive De-scoping and Unclear Not compliant 8 re-scoping of 9 Financial budget 9 648 definition with standards works
  • 64. Lean Project Management David Butcher and Steve Pearson
  • 65. 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. for highways sector trucks were available for loading. Lean analysis showed that, over the study period alone, As earthmoving operations advanced, increasing optimising truck movements would have enabled the length of the haul road, the number of trucks 128 extra ‘truck days’, moving 40,890cu.m more was steadily increased to account for the greater earth and saving nine days against programme. time taken to pick up a load, transport it to the The cost of additional truck hire would have been dump site and return for another load. Account outweighed by savings on excavator hire, delivering was also taken of delays due to plant crossings, £20,000 net benefit. Of far greater significance, mechanical breakdowns, maintenance of haul We’re enabling the UK Highways HOW WE’RE aDDinG value the benefit to the project of early earthworks completion would have been almost £680,000. roads and haul road congestion, as well as time taken to clear stuck mud from the dump truck skip. Agency to realise efficiencies of nearly a third using a process improvement system known as Lean. 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.” 6 Mott MacDonald www.mottmac.com 7
  • 66. United Kingdom £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 8 Mott MacDonald www.mottmac.com 9