Construction covers a spectrum from slow, certain, and simple projects to quick, uncertain, and complex projects. For the former, a manufacturing strategy is appropriate. For dynamic projects, a manufacturing strategy is insufficient -- we must learn to manage uncertainty and complexity within the characteristic conditions of site production, unique product, and temporary organization.
Construction requires implementation of four core responsibilities:
Coordination of thousands of trades craftspersons. Traditionally performed by the general contractor in accordance with a piecework schedule. On this project, work coordinated to maximize workflow. All parties responsible for receiving work ready for their efforts and passing on work acceptable to follow-on trades. Work flow determined through pull planning sessions and managed by each trades foreman as "Last Planners."
The Last Planners are the people on site leading a crew who know how to get work done. They organize personnel, tools, equipment and materials and establish time goals. They work with other foremen to sequence work efficiently for the project's success. They can expect areas are ready when handed to them and are responsible to other trades when they hand off their work.
Planning is defining what needs to be done and how; control is making it happen. The goal is predictable workflows from reliable commitments.
Four Levels of Planning:
The result: predictable work flow from one crew to the next, reducing waste.
LPS Process Steps:
Pull Planning:
Look-ahead Planning:
Commitment Planning:
Learning:
Implementation Notes:
Five standard logistics workflows for material delivery:
Just-In-Time / Point of Use: Materials delivered just-in-time to minimize waste. While JIT is the stretch goal, not every scope benefits. For large Trade Partners (mechanical, electrical, steel, casework), JIT should be attainable.
Buffers and Variability: Buffers include time, capacity, and inventory. Reducing variability reduces time and cost. An example buffer: "deliver today, what you need tomorrow, for installation the following day."
Material Classifications: Engineered to Order (ETO), Made to Order (MTO), Made to Stock (MTS), Consumables, Long Lead Items.
Prefabrication and Kitting: Bundling complete packages of materials for a unit of work. Kits can include specialty tools. Allows adjustment of daily quantities.
Vendor Managed Inventory: A site store where multiple Trade Partners purchase consumables. Min/max quantities determined for each item.
Central Materials Management Team (CMMT): Manages deliveries, inspections, staging. Responsible for implementing work flows, training Trade Partners, managing 3PL and VMI providers, executing processes, and implementing continuous improvements.
Inventory Management System (IMS): Web-based software tracking material throughout the supply chain. Provides program-wide transparency and visibility. Each material delivery identified by unique barcode. Logistics metrics developed from data: on-time delivery, scheduled deliveries, average days onsite, rejected materials.
Baseline or best practice for producing reliable processes. Applies to:
Focus first on highly repeatable processes or those with high quality/safety implications. Standard work can be output of First Run Studies.
The Core Team monitors and enforces the Built in Quality Plan including First Run Studies, Standard Work, Error Proofing, Zero-Defects Policy, ROY System, Lessons Learned, Managing the Commons.
Safety monitored including Leadership Commitment, Management Involvement, Safety Priority, Worker Empowerment, Good Catches, Incident Investigations, BIM Flagging Protocols.
Target Cost closely monitored with weekly updates of actual expenses. Cost Controls, Payment Processing, and Reporting managed through the WBS-based Cost Management System. Value stream costing used to identify costs for all process steps providing value to the customer.
The IPD/Lean approach fosters sufficient planning and collaboration for a proper closeout:
The Core Group begins planning closeout near the beginning of construction.
Example #1: "First time" Quality can eliminate punch lists and rework. Comparable to Toyota's "andon cord" -- when anyone sees a defect they stop the production line and correct it on the spot.
Example #2: "Optimizing the whole" and incentivizing trade partners can eliminate claims. The parties' energies focused on achieving the Owner's goals holistically. Goal: claims-free projects.
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