LEAN METHODS & LAST PLANNING

PUSH OR PULL?

1ST PLANNERS VS LAST PLANNERS

1st Planners• Project Managers are 1st planners. They impose

constraints, timetables & schedules on a project.

• Projects are then managed in terms of what should happen through management of the Critical Path.

Last Planners• Contractors, trade foremen & subcontractors are

last planners. They follow a schedule and work to adhere to the constraints of the overall project.

• They adjust their plans to the conditions on the ground as the need arises.

LEAN CONSTRUCTION• One key to making the construction process Lean is creation of a pull system.

• Managers begin by looking at what the completed project should be, then work backwards, identifying each preceding step.

• Later processes determine what earlier ones will be, and when they should take place.

• Relies on use of six-week “Look-aheads” and weekly work plans.

• Front-end planning belongs in the project definition & design phases. That planning produces master schedules, which “are expressed at the level of milestones, typically by phase,” according to the Institute. “Phase schedules feed into look-ahead windows, usually 3 to 12 weeks in duration.”

• These processes make scheduled tasks ready for assignment; the tasks are placed in Workable Backlog. Weekly work plans are formed by selection of tasks from the Workable Backlog.

• One of the biggest benefits is a much higher level of communication & awareness. It becomes a highly collaborative process. There’s a new feeling of communication & participation for the people that are actually doing the work as subcontractors and trades are empowered on the job sites to make decisions.

PUSH

• Critical Path Method (CPM) often requires work to be done that cannot be completed as programmed because one or more of the ‘Flows’ are broken.

• If CPM worked by itself, there would be a high coincidence between what should be done and what is done.

• The Critical Path Method is a wish list; a ‘Push’ system.

…OR PULL?

Approximation

Anticipation

Excess

PushPrecision

Actuals

Minimums

Pull

FLOW

• Value = What you get (or want) / What you pay

• Creating Value in construction requires the transformation of materials. This is done through ‘Flow.’

• There are 7 construction streams that make up ‘Flow.’

• People• Information• Equipment• Materials• Prior Work• Safe Space• Safe External Conditions

The 7 Streams of Flow:

MANAGING FLOW

• Problems arise and breakdowns often occur at the interfaces between contracts and trades. What was promised vs. what can be delivered.

• Project Managers manage ‘Flow’ through 5 Key Conversations.

• #1 - Collaborative Programming

• #2 - MakeReady• #3 - Production Planning• #4 - Production Management• #5 - Measurement, Learning

& Continual Improvement

The 5 Key Conversations:

#1 - COLLABORATIVE PROGRAMMING

Collaborative Programming• Creating & agreeing to a production sequence.

• Helps project team identify issues and design & plan handovers.

Program Compression• It is possible to use collaborative programming

to reduce a project’s duration by as much as 20%.

• Program compression can be achieved through workshops and planning sessions.

• This is where leaders engineer value.

VALUE ENGINEERING TECHNIQUES• PDCA, Process Walk, Value Stream MappingCollect Data & Analyze Work Flow

• Process Flow Chart, Value Streams, Problem Solving, 4M’sDesign Process Sequence

• 5S, Cell Layout & Design, Visual ControlsMinimize the Distance Between Equipment

• Setup Reduction, Pull System, Kanban, Poka Yoke, Six SigmaProduce & Move One Piece at a Time

• Takt Time CalculationProduce at the Rate of Customer Consumption

• Time Observation Studies, Line Balance ChartsBalance Operations & Standardize Work

• Cross Training, Skills Analysis MatrixTrain Personnel to Operate Multiple Processes

• Automation, Right-Sized MachinesSeparate People from Machines

#2 - MAKEREADY

• Making tasks in the planning period ‘ready’ by making them constraint free.

• Helps ensure that work can be done at desired times.

• A simple MakeReady checklist ensures the integrity of the 7 Flows that make up the construction stream.

Information• Documents• Plans• Specs• Codes• Standards

Prerequisites• Work Needed Prior

Resources• Who

#3 – PRODUCTION PLANNING

• Collaboratively agreeing upon production tasks for the near future.

• Allows planning & planners to check for interdependencies before committing to the schedule.

Rule #1If you

promise to do it,

get it done.

Rule #2If it

cannot be done, don’t

promise to do it.

PROJECT EVALUATION & PLANNINGThe transition from planning to production offers 4 opportunities for leaders to engineer value.

• 3 - Perform• 4 - Assess

• 2 - Negotiate• 1 - Prepare

Request Performer Promise

Declare Complete

Declare Acceptance

#4 – PRODUCTION MANAGEMENT

• Collaboratively monitoring production to keep activities on track.

• Helps planners adjust in light of new information.

• Creates a shared sense of responsibility for project delivery.

• Key Conversations 3 & 4 can be combined into a single meeting or conversation.• Production Planning +

Production Management.

#5 - MEASUREMENT, LEARNING & CONTINUAL IMPROVEMENT

• Learning together about & improving project planning & production processes.

• The learning element encourages learning from success & reduces repeated failures.

Planning

Predictability

Reliability

HOW DO YOU EAT AN ELEPHANT?

The Simple Answer: One Bite at a Time

VALUE ENGINEERING TECHNIQUESA DEEPER DIVE

COLLECT DATA & ANALYZE WORK FLOW: PDCA

• Plan• Do• Check• Act

COLLECT DATA & ANALYZE WORK FLOW: PROCESS WALK• A Process Walk is a series of

structured, on-site interviews with representative process participants with the goal of gaining a comprehensive understanding of the process.

• Interviews focus on detail such as process time, wait time, defect rates, root causes & other information that can lead to targeted improvements.

• Also known as a ‘Gemba Walk.’

VALUE STREAM MAPPING

• Value Stream Mapping is a lean-management method for analyzing the current state & designing a future state for the series of events that take a product or service from its beginning through to the customer.

• Also known as ‘Material & Information Flow Mapping.’

DESIGN PROCESS SEQUENCE: PROCESS FLOW CHART

• A visual representation of the steps in a process.

• Also known as ‘Process Mapping’ or ‘Flow Diagrams.’

DESIGN PROCESS SEQUENCE: VALUE STREAMS

• Sequence of activities required to design, produce, & provide a specific good or service, & along which information, materials, & worth flows.

DESIGN PROCESS SEQUENCE: PROBLEM SOLVING

Target Reveal Analyze Navigate Strategize Finalize Overhaul Review Mobilize

DESIGN PROCESS SEQUENCE: 4 M’S

• A particular form of procedure for accomplishing or approaching something, especially a systematic or established one.Method

• The number of people working or available for work or service.Manpower• An apparatus using or applying mechanical power & having several parts,

each with a definite function & together performing a particular task.Machine• The matter from which a thing is or can be made.• Facts, information, or ideas for use in creating work.Materials

MINIMIZE THE DISTANCE BETWEEN EQUIPMENT: 5 SSeiri – Segregate unwanted material from workplace

Seiton – Streamline

Seiso – Scrub; keep workplace clean & safe

Seiketsu – Standardize best practices

Shitsuke – Keep in working order; training & discipline

MINIMIZE THE DISTANCE BETWEEN EQUIPMENT: CELL LAYOUT & DESIGN

• Also known as ‘Cellular Manufacturing.’

• A model for workplace design. It is an integral part of just-in-time & lean processes, with additional applications in administrative processes.

• The cell, or work cell, has roots in group technology, which seeks to align process flows by families of component parts or, sometimes, families of target customers

• Cellular manufacturing brings scattered processes together to form short, focused paths in concentrated physical space.

MINIMIZE THE DISTANCE BETWEEN EQUIPMENT: VISUAL CONTROLS• Visual controls are a system of signs,

information displays, layouts, material storage & handling tools, color-coding, and mistake proofing devices.

• These controls fulfill the old fashioned adage: a place for everything & everything in its place.

• The visual control system makes product flow, operations standards, schedules & problems instantly identifiable to even the casual observer.

• Allows quick recognition of information being communicated, in order to increase efficiency & clarity.

• A visual display group relates information & data to employees in the area. For example, charts showing the monthly revenues of the company or a graphic depicting a certain type of quality issue that group members should be aware of.

• A visual control group is intended to actually control or guide the action of the group members. Examples of controls are readily apparent in society: stop signs, handicap parking signs, no smoking signs, color coded shirts, uniforms, etc.

2 Main Groups: Display & Controls:

PRODUCE & MOVE ONE PIECE AT A TIME: SETUP REDUCTION

• Also known as ‘SMED’ – Single Minute Exchange of Die.

• A VE technique to eliminate waste by analyzing a process over time.

SMED EXPLAINED USING A CYCLE OF LAUNDRY

PRODUCE & MOVE ONE PIECE AT A TIME: PULL SYSTEM• A Pull System is a lean strategy used to reduce waste in a

process. Components used in this system are only pulled in once they are needed. This means all resources are used for production that will immediately move a process forward.

• Essentially, a pull system works backwards, starting with the need then using various signals to prompt action in each previous step in the process. The final product is pulled through the process by demand.

• The biggest incentives to use a Pull System are increased efficiency (Time), reduced waste (Cost), and increased opportunities to increase quality (Scope); hitting all points of the triple constraint without imposing the extra constraints that make up Push Systems.

THE TRIPLE CONSTRAINT

PRODUCE & MOVE ONE PIECE AT A TIME: KANBAN• Kanban helps you harness the power

of visual information by using sticky notes on a whiteboard to create a “picture” of your work.

• Seeing how your work flows within your team’s process lets you not only communicate status but also give & receive context for the work. Kanban takes information that typically would be communicated via words & turns it into brain candy.

• Creating a visual model of your work & workflow facilitates observation.

Visualize Work

• Limiting how much unfinished work is in process can reduce the time it takes an item to travel through the Kanban system.

Limit Work in Process

• Using work-in-process (WIP) limits & developing team-driven policies can optimize your system to improve the smooth flow of work, collect metrics to analyze flow, & even produce leading indicators of future problems through analysis.

Focus on Flow

• A cornerstone for a culture of continuous improvement. Teams measure their effectiveness by tracking flow, quality, throughput, lead times & more. Experiments & analysis can change the system to improve the team’s effectiveness.

Continuous Improvement

PRODUCE & MOVE ONE PIECE AT A TIME: POKA YOKE• Japanese term which means mistake proofing.

• A poka-yoke device is one that prevents incorrect parts from being made or assembled, or easily identifies a flaw or error.

• Or “mistake-proofing,” – a means of providing a visual or other signal to indicate a characteristic state. Often referred to as “error-proofing,” poka-yoke is actually the first step in truly error-proofing a system. Error-proofing is a manufacturing technique of preventing errors by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly.

Example: A Square Peg & Round Hole

PRODUCE & MOVE ONE PIECE AT A TIME: SIX SIGMA• Six Sigma is a set of quality management techniques &

tools for process improvement. Six Sigma seeks to improve the quality output of process by identifying & removing the causes of defects (errors) & minimizing variability in manufacturing & business processes.

• Continuous efforts to achieve stable & predictable process results are of vital importance to business success.

• Manufacturing & business processes have characteristics that can be measured, analyzed, controlled and improved.

• Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

DMAIC – Improving Existing Business Processes

Define

Measure

Analyze

Improve

Control

DMADV – Creating New Processes

Define

Measure

Analyze

Design

Verify

PRODUCE & MOVE ONE PIECE AT A TIME: SIX SIGMAQUALITY MANAGEMENT TOOLSThese QUALITY MANAGEMENT & STATISTICAL & FITTING tools are used within the individual phases of a DMAIC or DMADV project.

5 Whys Axiomatic Design

Business Process

Mapping

Cause & Effect Diagrams

Control Chart / Plan

Cost Benefit Analysis CTQ Tree Stratification

Histogram / Pareto

Analysis

Pick Chart / Process

Capability

Quality Function

Deployment

Quantitative Marketing Research

Root Cause Analysis SIPOC COPIS

Taguchi Methods /

Loss Function

Value Stream Mapping

Analysis of Variance

General Linear Model

ANOVA Gauge R&R

Regression Analysis Correlation Scatter

DiagramChi Square

Test

PRODUCE AT THE RATE OF CUSTOMER CONSUMPTION: TAKT TIME CALCULATION• Takt Time is the rate at which products or

services should be produced to meet customer demand. The value, in conjunction with current loading (production) rates, is used to analyze process loads, bottlenecks, & excess capacity.

• The study will indicate which operations are ahead of the demand rate & others that are not, both indicating opportunities for improvement.

• This is strictly a formula & calculation. Use it to compare your measured "loading" to quantify whether an operation meets, exceeds, & by how much.

TAKT TIME FORMULA

BALANCE OPERATIONS & STANDARDIZE WORK: TIME OBSERVATION STUDIES• Time Observation captures all the steps

that were recorded in a process & the cycle time for each task separately.

• Important for accurately measuring a work load.

• Useful for verifying a sequence of events & making adjustments.

• Used in conjunction with a floor plan & a map of movements required per observation, a Time Observation Study can be used to maximize efficiency & reduce waste.

SAMPLE TIME OBSERVATION SHEET

BALANCE OPERATIONS & STANDARDIZE WORK: LINE BALANCE CHARTS• Line Balancing is leveling the workload

across all processes in a cell or value stream to remove bottlenecks & excess capacity. • A constraint slows the process down &

results in waiting for downstream operations.

• Excess capacity results in waiting and no absorption of fixed costs.

• Line Balancing seeks to match the production rate after all wastes have been removed to the Takt time at each process of a value stream.

SAMPLE BALANCE CHART

TRAIN PERSONNEL TO OPERATE MULTIPLE PROCESSES: CROSS TRAINING

• Cross-training in operations involves training resources to engage in quality control measures. Resources are trained in tangent functions to increase oversight in ways that are impossible through management interactions with resources alone.

Advantages

• Empowers resources

• Challenges bureaucratic drift

• Raises awareness of what others do

• Enhanced scheduling flexibility

Secondary Advantages

• Increased versatility

• Appreciated Intellectual Capital

• Improved individual efficiency

• Increased standardization

TRAIN PERSONNEL TO OPERATE MULTIPLE PROCESSES: SKILLS ANALYSIS MATRIX• Use a Skills Matrix to confirm the skills,

knowledge, & interest of your team members.

• A Skills Matrix is a table that displays people’s proficiency in specified skills & knowledge, as well as their interest in working on assignments using these skills & knowledge.

• Document people’s skills & knowledge & verify their interests, in case you need to assign people to unanticipated tasks that crop up or if you have to replace a team member unexpectedly.

SAMPLE SKILLS MATRIX

SEPARATE PEOPLE FROM MACHINES: AUTOMATION

• Automation is the use of various control systems with minimal human intervention.

• Selective automation lowers costs by reducing time by reducing variation.

• Best maximized as a successor to other Value Engineering (VE) techniques.

Assess Process

Evaluate Flow

Identify VE Opportunities

Implement VE Techniques

Identify Automation

Opportunities

Design & Implement

SEPARATE PEOPLE FROM MACHINES: RIGHT SIZED MACHINES• Any process requires assets to run it. You could

use a big machine (large solution / contractor / vendor) that costs a lot of money, but has tremendous functionality & flexibility. However, these machines, because of their cost, end up being used in several processes to defray the cost. This tends to disrupt flow.

• The alternative is to buy or build a smaller machine that may have fewer functions. This machine is dedicated to a single process. It can then be located in a logical position to support one piece of a flow without interfering with other processes.

Ant vs Sledgehammer

KAIZENChange for better; the practice of continuous improvement.