Lean Construction Institute

Skanska’s Lean Journey

October 14, 2015

1Lean Construction Institute

Skanska USA Building’s Lean Journey

Presented by:

Joe Breen, Senior Vice President – Project Executive, Boston Office

Kevin McCain, Vice President/Account Manager, Seattle Office

Carmen Jordan, Regional Lean Director, Seattle Office

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Who is Skanska?

Recognizing the Opportunity

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Why Lean?

−  Values alignment*: −  Long-term philosophy −  Bring problems to the surface − Quality right the first time −  Employee empowerment − Grow leaders who thoroughly understand the work − Develop exceptional people − Continuous improvement (kaizen)

*taken from Toyota’s 14 Management Principles

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Limited Duration Team (LDT) Assignment

−  Problem Statement

−  Team − Co-Chief Operating Officer −  Account Manager −  Business Development −  Preconstruction Director −  Project Controls −  Project Executive −  Project Manager

−  Summer 2014 10/14/2015 6

What We Found

−  Insert.

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Common Vocabulary

−  “Internal” Lean −  Lean Construction: as it relates to operations

within our organization and/or directly under our control

−  “External” Lean −  Lean Construction: a collaborative environment

structured around a multi-party agreement, IPD-light, collaborative working agreement, etc.

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Our office’s journey began 4 years ago with VMI’s Advanced Lean Training

Seattle Office – Isolated Initiative

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Getting Organized Seattle Strategic Imperative in 2012 −  Establishing a Lean Culture

is a business imperative: −  Buy-in at a senior level −  Training our people −  Implementing Lean to

streamline internal processes −  Lean Committee − Regional Lean Director

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Internal Lean Seattle Office −  Rapid Process Improvement Workshops

(RPIW’s) − Management commitment − Diverse participation −  Immediate implementation (PDSA)

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−  Job start-up − Reduced lead time from 31 days to 3 days

−  Labor work packaging − Reduced lead time from 54 days to 3 days

−  Request for Proposals − Quality-based RPIW −  78% hit rate since implementation

RPIW’s Seattle Office

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National RPIW’s

−  Long-Term Forecasting Process −  Time savings through

reduction in double-entry − More focused, higher

quality discussions

−  Subcontractor Prequalification − Reducing project risk −  Enhance programs we are

already using

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External Lean – Stone34 Seattle Office

−  Lean Pilot Project for the Seattle Office

−  12 Established Guiding Practices (selected) −  Last Planner System − Removing road blocks −  Prefabrication − Quality management

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− Continuous improvement / lessons learned

−  BIM −  Paperless jobsite

External Lean – Stone34 Seattle Office

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Seattle Office – looking ahead

−  Share best practices with other offices

−  Continue with success of RPIW’s

−  Work with customers to increase Lean awareness

−  Give it a try!

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Boston Office – Isolated Initiative

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−  Intermittent LCI participation

−  Novartis: colocation, off-site prefab, design assist

−  Education First: design-build, design assist, collaborative “IPD Light” team

−  Awareness and participation in workflow mapping with healthcare clients

Getting Organized Boston Office −  National Limited Duration Team awareness

−  Communication with the Seattle office

−  Advice on how to start the journey, lessons learned and successes.

−  Participation in AGC training.

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Implementation Boston Office

−  Senior management team discussions and full commitment

−  Appointed executive sponsor and champion

−  Commitment to implement Lean methodologies on Skanska Commercial Development projects

−  Senior executive and staff training – 14 week program

−  Senior staff charged with encouraging engagement

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Execution Boston Office −  Establishment of Boston Lean Leadership Committee

−  Roll out Lean SharePoint site as office wide resource

−  Establish office mission statement and behavioral expectations

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Execution (continued) Boston Office −  Industry outreach and knowledge sharing

−  Rapid Process Improvement Workshops/Workflow Mapping

−  Engage Project Service Groups to help set business goals

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What’s next for Skanska USA Building? −  Sharing Rapid Process Improvement Workshop

(RPIW) results

−  Sharing the Lean culture

−  Integrating into 5 year business plan strategy

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Challenges

−  Flavor of the month?

−  Are we there yet? It’s a journey, not a sprint!

−  Implementing tools versus changing a culture

−  Show me the money

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Conclusions

1.  Pushing from the bottom can change the discussion at the top

2.  You need to prove something works on a smaller scale before taking the leap company-wide

3.  Get outside help, you can’t do it all on your own

4.  Buy-in is essential, at any level

5.  Join forces with other teams, offices, etc.

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Q A & 26 10/14/2015

Glossary of terms

−  3P – Production, Preparation, Process – A method to achieve a breakthrough or transformation changes in the production process.

−  5S - Sort, Simplify, Sweep, Standardize, Self-Discipline: A visually-oriented system for organizing the workplace to minimize the waste of time.

−  Limited Duration Team (LDT) – A team of employees established for the purpose of accomplishing a strategic business assignment during a limited time frame.

−  Rapid Process Improvement Workshop (RPIW) - A five day workshop focused on a particular process in which people who do the work are empowered to eliminate waste and reduce the burden of work.

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