Lean Production Management

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Lean Production Management

• Improving Construction Reliability and Efficiency
  

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BMW Constructors, Inc

• Industrial construction refining, chemical,
  power, pharmaceutical, biotech, high-purity
  industries
• Local office for greater Chicago area in Munster
• Operations in Indianapolis, Seattle and Portland,
  Oregon

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Brief Timeline of Industrial Efficiency

• Henry Fords assembly line
• Toyota manufacturing method
• Improvements migrate to US auto industry
• Lean Manufacturing
• Lean Construction

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Implementing Lean

• Lean is not a software initiative
• Results are accomplished through behavior
  modification
• Cultural change requires constant, unflagging
  commitment
• Project manager and key staff are primarily
  drivers of the Lean work processes

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Group Planning is the Core of Lean

• Plan work sequences as one democratic
  collaborative group including crew foremen
• Plan what is best for the project as a whole, not
  what may be best for a single discipline
• Identify the ideal construction activity sequences

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Identify and Solve Constraints

• After full development of the ideal sequence
  plan, work in constraints that can not be
  mitigated materials, equipment, etc.
• Assign every constraint that inhibits the ideal
  sequences to a team member for solution
• Management and staff facilitate planning and
  resolve constraints

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Lean Planning
Lean Planning
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The Plan is Never Finished

• As conditions change, replan the affected
  activities
• Group review of the current plan, usually weekly
• Pull additional knowledge and new participants
  into the planning group

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Develop Standard Processes

• Created for work objects foundations, steel
  members, pipe spools, cables, conduit, equipment,
  specialty items, tie Points, instruments
• Work flow streams mapped to drive out waste
  perform only activities that add value
• (22) LB CS Spool w/ PWHT

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Crew Daily Commitments

• Each foreman makes detailed work commitments for
  the next day
• Accomplished commitments are tracked
• Reasons for unmet commitments are tracked
• Staff and management facilitate solutions to
  eliminate the reasons for missed commitments
• All in a positive, supportive effort to get
  better!

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Refinery Process Unit Results

• Installed pipe _at_ at 1.99 man hour per foot, vs.
  2.39 for nearly identical 2003 unit
• Installed steel _at_ 15.8 man hours per ton vs. 23.9
  for 2003 unit
• Scaffold use 11.5 of direct field craft hours
  experience is usually 15
• Small amount of craft overtime - 7

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Multiple Refinery Units Results

• Project completed in company record time very
  tight completion target
• 9.5 productivity improvement as measured by
  owners cost engineers
• Owner reports construction labor cost reduction
  of 10 million

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Architectural Rebuild Results

• After seeing Lean in operation, the contract
  construction management company embraced and
  supported Lean
• Completed project using 15 less construction
  labor man hours in a very competitive lump sum
  environment
• The guys in the field ran the job management
  was easy

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Feedback from our Owners

• Lean with self-managed contractors enables
  quicker responses to issues
• Creates strong sense of contractor and craft
  ownership
• Develops one unified project team of owner,
  engineer, contractor and laborer
• Work always kept in front of crafts high
  productivity and high craft morale

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Owners View of Implementation

• Contractor management must be enthusiastically
  supportive of Lean
• Takes up a lot of supervisors time up front,
  until they realize the benefits of planned work
• Big learning curve

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Lean Changes Strategy and Roles

• Managers must let go and let their field
  supervisors develop plans
• Managers are facilitators, not directors
• Managers and superintendents must be PATIENT
• Go slow to go fast!