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Table of Contents
1
FOREWORD ........................................................................................... 1
1 Foreword
Building new LNG infrastructure is a massive industrial undertaking, creating nationally
significant wealth engines that operate for more than a generation.
Australia is LNG lucky. It leads the world in the construction of new LNG plants, with
plants under construction in Western Australia, Queensland and the Northern Territory.
Why then the focus on LEAN Construction and why publish this guideline?
New LNG infrastructure is capital intensive costing billions of dollars per train. Australian
LNG plants are generally in remote locations so providing a large local workforce of
affordable skilled labour is a challenge. How then can the cost of new Australian onshore
LNG capacity remain globally competitive ($/tonne per annum)?
One very promising approach is to employ Lean thinking. LEAN is a philosophy that
removes non-value adding activity and changes all stakeholders in the value chain. LEAN
Construction is the adaption of LEAN to project delivery. It is an excellent framework with
which to deliver a transformation in construction productivity for Australian LNG.
Australia has the expertise to transform quickly due to its world class experience of real
LNG construction.
Where else has this happened before? The manufacturing industry has transformed itself
over the last 25 years, with high tech consumer items now radically more affordable then
was ever thought possible. Even in a modern high wage environment, onshore LNG plant
construction in Australia can follow the lead of manufacturing and use the LEAN
Construction framework to achieve ultra-high productivity. The key is to move project
thinking from a series of one-off endeavours to seeing major projects as a continuous
system of construction featuring constant continuous improvement of the repeating
parts.
All stakeholders must play their role to achieve meaningful success owners, main
contractors, sub-contractors, equipment suppliers, regulatory agencies, individual
tradesman and trainers.
This guideline introduces LEAN Construction techniques to those wishing to transform
and seeking a first step on this important journey.
Good luck
Dr Julie Morgan
Chair, Oil and Gas Facilities Group, WA Division Engineers Australia
Leo Coci
Chair, Construction Panel, WA Division Engineers Australia
Page | 1
Page | 2
Continuous
Improvement
Go & See
Respect the
Individual
Teamwork
Value
Value
Stream
Flow
Pull
Perfection
Waste
5S
Standardised
Work
BIM
Last Planner
Continuous
Improvement
Pull Planning
Built in
Quality
Information
Centre
Meetings
Just In Time
Page | 3
Lets do a Go & See after the meeting as a team to look at that issue
Joes the tradesman on that job lets go out and talk to him about the issue
Our safety performance has been good, but what can we do to get Continuous
Improvement here how are your ideas coming?
Using LEAN language helps to reinforce the philosophies of LEAN and the leaders actually
reflecting this in their behaviour will do more to cement the change than anything else.
Page | 4
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3 Recommended Practice
3.1 Eliminating Waste
Waste is defined as anything which does not added value to the customer. Value added
work is what changes the form or function of the building or structure, for example,
bolting a valve or pouring concrete, it is what the customer is willing to pay for. Nonvalue added work or waste is everything else, such as waiting for inspection, movement
around the site, rework of welds. We do all of these things but they do not actually add
value to the building or structure.
Imagine a work site where everyone on the site is aware of what waste is and tries to
identify it and then eliminate it from their day to day work. This is the start of a
Continuous Improvement culture and the key to improved quality and productivity.
In order to help us see waste within our process, we split it down further into the 7
wastes (Figure 1) (remembered with the acronym WORMPIT):
Waiting for materials or specifications for a job before it can start, waiting for
others to finish their part of a job, waiting for sign off before moving on
Rework any job which is not to the right specification or quality and has to be
rectified is waste
Motion the movement around the site of the people themselves is not actually
adding any value to the site
Processing (over) doing too much to a job, producing too high a specification when
it is not necessary, for example painting 3 times what only needs to be painted once
Inventory too much or too little inventory is waste, we need the right amount to
enable us to do the job well
3.1.1 Deployment
The first step in the process is to identify which key areas, tasks or crews you will target
to eliminate waste. This may sound odd, but eliminating waste means working
differently and this takes resources so it is wise to do this where you will get the largest
return initially.
Ideally, everyone on site will understand, look for and work to eliminate waste, but we do
not start at this condition, so we choose a series of tasks to work on to grow these skills
within our organisation.
The work areas chosen should give the biggest return on our time and investment. Then
for each area, task or crew we can take one of two initial approaches.
Page | 6
Transportation
Waiting
Inventory
Overproduction
(over or under)
Over processing
(eg painting 3 times
when 1 will do)
Repair / rework
Motion
(eg re-welding
rectifying)
Page | 7
teaching the crew(s) working in the area/on the task about the 7 wastes
asking the Team Leader/Superintendent to Go & See the work site and spending
some time (~30 minutes) watching how work is performed
noting down examples of each of the 7 wastes that you see On a Waste Walk sheet
going through these findings with the crew and highlighting the top one or two
wastes which the crew can tackle
investigating the root cause of the waste (using Go & See and 5 Whys) and coming up
with countermeasures
implementing the easy, high benefit countermeasures that the crew can do for
themselves
Waste Walk
Area Observed:
Observer:
Waiting:
Recommendation / Action
Over Production:
Recommendation / Action
Rework:
Recommendation / Action
Motion:
Recommendation / Action
Processing (over):
Recommendation / Action
Inventory:
Recommendation / Action
Transportation:
Recommendation / Action
Date:
Page | 8
Value Stream Mapping is a more in-depth technique designed to set out each of the
steps from the beginning to the end of a specific process (including how much
inventory, rework and waiting there is within a process) and includes:
teaching the crew(s) working in the area/on the task about the 7 wastes
asking the Team Leader/Superintendent to Go & See the work site and spend some
time (~1-3 days) mapping out each step of the process, engaging with the crew
using post-it notes to display these steps up on a wall, including data for each step:
o
number of people doing the work
o
how long it takes
o
any rework seen
o
any inventory seen between steps
o
any waiting between steps
inviting the crew in, refreshing them on the 7 wastes, asking them to review and
agree with the process, then identifying waste in the process with a different
coloured post-it note
brainstorming countermeasures for each of the wastes (once again some further
investigation may be necessary) and adding these to the wall
ranking the countermeasures by ease of implementation and benefit to the process
implementing the easy, high benefit countermeasures first and then working
through the others.
Figure 3 shows a Value Stream Map for a process. The yellow postit notes describe the
process and data and the different coloured notes are the countermeasure ideas
identified by the crew.
The identification and elimination of waste is an on-going process. Once the first set of
countermeasures has been implemented, it is time to start again to identify waste in the
remaining process.
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When all personnel are trained and experienced in finding and eliminating waste, this
starts to happen everywhere on site on an on-going basis, that is, the engagement of all
employees in an organisation in the ceaseless identification and elimination of waste.
construction of a training schedule that devotes time to each area, task or crew which
has been selected for waste elimination.
3.1.3 Measurement
A good measure for the success of the waste elimination program is the number of
people trained in the 7 Wastes and the number of Waste Walks/VSM sessions being
carried out.
Overall success will be measured in terms of productivity and quality improvements, but
this is difficult to link back to the Waste Walks. It is easier with the VSM process as there
are usually less of these and they have a more defined outcome.
For further information on measurement criteria refer to Appendix 2.
Page | 10
3.2.1 Deployment
The steps in process deployment are as follows:
Project management and team members agree that TVD is going to be part of the
design process for a specific project or phase of a project.
The team defines the current scope of the project and gathers all existing cost data or
information for that scope.
Estimators, or the appropriate staff, take that data and prepare an estimate for this
scope in whatever format is acceptable to the team.
This cost data is displayed in a TVD format (Figure 4) for review and acceptance by the
entire team.
Page | 11
The estimator works with the design team to provide cost impact data for decisions
or changes from the scope defined above. The relationship between the estimator
and designers is ongoing and continuous ideally in a big room where all team
members work and collaborate. This impact data is displayed on the TVD A3.
The team (or multi-function smaller parts of the team) review the overall impact of
the cost data and work to ensure that the Target Cost is never exceeded. Typically this
means that if one cost bucket goes up, another one must come down, providing
hard targets or goals for the multi-function teams to address.
the team has some background training in the Target Value Design and understand
their roles in the process
team members are prepared to work with the estimating staff to understand the cost
of their decisions or design development.
Page | 12
a project estimate that is accepted as a target cost by the entire team including the
owner, construction, etc.
a target cost tracking scheme (probably an Excel workbook) available and clearly
displaying the cost impact of decisions or planning by the team
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3.3.1 Deployment
Deployment Process Steps include:
agreeing to use a model and what parts of the project will be modelled
developing project standards for the model that meet the needs of all users (layers,
coordinates, amount of detail, etc.)
using the model for reviewing progress, collaborating on design decisions, confirming
locations of equipment, clash detection, etc.
establishing a routine for viewing and checking the model so it becomes the centre of
the project teams attention.
developing a plan for use of the model by field personnel including connection with
schedule and/or materials management systems.
BIM Manager - in essence a project manager for the model someone who
understands what it can do, what people need to do to make that happen and the
ability to get people and organisations to do that.
BIM Operators all the engineers, designers, IT specialists who actually produce the
model - training and knowledge are essential as it is much easier and more effective
to get it done correctly the first time than to rework it later.
BIM Facilitator after the model is constructed and work has moved to the field, the
BIM Facilitator ensures that the field staff take full advantage of this new tool. The
Facilitator works on collaboration between subcontractors in the use of the model,
identifies new tools that can assist all team members, and helps superintendents
understand what the model can do for them in project meetings.
Page | 16
When a team agrees to use BIM as their primary means of collaboration and design
interaction, it is important that all members agree to this and that all members use the
model as their design documentation. If one member requires hard-copy 2D drawings
for review or checking, many of the advantages of using BIM are lost. Note that many
locations still require hard-copy 2D drawings for permitting or government approvals
and the team must agree on the most efficient method of preparing these.
BIM is a tool that provides opportunities for much greater collaboration between team
members and this collaboration must not be restricted. Consistent use of the model to
discuss, review or work on the current design should be an everyday occurrence.
Discussions between modellers, engineers, operators and managers must be open,
respectful and lead to good decisions on the way forward, whether it concerns a pipe
location or an entire site location.
Minimum standards for deployment include:
resolution of who owns the model during design and after construction completion
acceptance of goals for the model and its ultimate use (maintenance, life cycle
costing, etc.) by the team and final owners.
The following resources are required for deployment:
agreement as to how the model will be used
will be clearly defined and management can use the model to display issues and progress
to those needing such information.
How will the model be used by operations or maintenance when construction is
complete?
This question needs to be answered by the team during the early stages of design. BIM
can provide numerous tools to help operators and maintenance staff including built-in
product or component data, start-up sequences, warnings as to when maintenance is
required, etc. However, there is some cost to including these features as the model is
being constructed so the final owners of the model must be able to use the features and
feel that they provide value. This information must be part of the early decision as to
what features to include for operators and maintenance.
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3.4.1 Deployment
The deployment process steps are as follows:
select project (or portion of), phase, team and leader to implement the Last Planner
System
review the Pull Phase Plan (or prepare one if not available (see Section 3.5 Pull
Planning) and agree on its relevance to and accuracy for the work to be performed.
Ideally, the team members or their foreman will have participated in the
development of the Phase Pull Plan.
print out or display the next six weeks of work from the Pull Phase Plan (Figure 8).
review the next six weeks of activities to determine whether there are any
constraints to accomplishing the tasks shown on it
list these constraints and agree on who is going to remove them and when (not
necessarily a member of this group). This information is typically displayed on a
Constraint Log (Figure 9).
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Have the foremen (last planners) responsible for the work prepare a Weekly Work
Plan (WWP) for the next week, typically by trade or area (Figure 10 shows the detail
necessary in assignment description). Ultimately, the individual WWPs are combined
into single plan for the project and reviewed by the team. The team reviews and
agrees on this WWP, especially on any conflicting activities this is the most
important part of the LPS. It is this collaboration, discussion and agreement that
allow the work flow to become significantly more reliable and, ultimately, more
productive, safer and profitable.
do the work as scheduled on the WWP, but start (or select an appropriate time) each
day with a huddle to review the planned daily activities - a meeting, typically
standing at the work face, of the last planners and manager (superintendent,
project manager, etc.). This ensures that there are no new constraints or
opportunities to improve the work flow (see Section 3.6 Information Centre
Meetings).
Page | 22
Identify and record successes or failures in completing the tasks as committed. This
record consists of a simple YES if the task is completed on the day committed or a
NO if it was not. As a goal of using LPS is reliable work flow, there is no credit (a
YES) for completing part of a task on the day committed the goal is to totally
complete the task so that the following or successive trade can do their work as
planned. This is one of the major differences between LPS and a typical progress
reporting system.
fill in the columns on the WWP form where each task receives a YES or NO and a
reason (variance) for the NOs. This recording should be done on a daily basis,
typically at the daily huddle where the WWP can become part of the Information
Centre. When a NO is recorded and the reason selected, this should become a
learning experience. The team or crew can identify changes that can be made so the
failure does not occur again (Figure 11).
Figure 11 Weekly Work Plan with YES/NO and Categories of Variance listed with a calculation of PPC
plot the Plan Percent Complete or PPC. This is an ongoing indication of the teams
ability to plan and execute work on a reliable basis. PPC is simply the number of tasks
completed (on the day committed) divided by the total number of tasks scheduled to
be completed that week. The PPC provides a metric to demonstrate planning
proficiency and is the key to demonstrating not only how, but how well, the team is
doing in creating reliable work flow. Figure 12 shows a PPC calculation form, even
though this form indicates performance by contractor, teams are typically judged by
the Total Project PPC, which is poor in this case. Figure 13 demonstrates ongoing
tracking of PPC which provides an indicator of the teams ability to adequately plan
their work.
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Many teams establish a goal or target PPC, typically above 80%. However, even this
means that a significant number of tasks are not completed on the day committed,
requiring fixes or fire-fighting to keep the work flowing. A goal of 100% is obviously
harder to achieve or maintain consistently (given weather, client changes, slow response
to RFIs, etc.) but provides a real incentive for learning and correcting systemic problems.
Figure 14 shows variances as recorded on the WWP for one week. Typically the variances
are tracked for a longer period of time. Plotting of the variances is not as important as
plotting the actual PPC but does provide an indication to management of any recurring
problems within the system.
Many teams have found that using a projector and screen is better for reviewing the
Make Ready Schedule and Weekly Work Plans than individual prints. The team can
concentrate on the screen and the activities rather than their own piece of paper.
The exercise of the team preparing the Phase Pull Plan is very important to their
understanding of the work that needs to happen when they do the Make Ready Planning
and WWP reviews. It is much better if the same team members do both.
Page | 25
Huddles or Information Centre Meetings are an important part of the LPS. A quick review
of progress from the previous day and a look at the activities for the current day provide
the team with an understanding of their overall progress. Superintendents typically feel
that they communicate with all the foremen by walking around and having a one-onone discussion. A huddle provides a very different and more valuable experience and
saves time.
Confirm that every item shown on the Make Ready Schedule for the current week is
included on someones Weekly Work Plan. In most cases, these items are expanded on
the WWP so that more detail is shown and one can easily confirm whether the activity
has been completed as scheduled or not. A final check ensures that no activities are on
someones WWP but not on the Make Ready Schedule this would indicate that work is
being done that has not been planned and may, in fact, prevent another performer from
accomplishing his plan.
the team has some background training in the Last Planner System and
understanding of their roles in the process
a Phase Pull Plan is in place for the work that is scheduled for execution (see Section
3.5 Pull Planning). This type of schedule is essential for successful implementation of
LPS because it represents the consensus plan of the team preparing to execute the
work. A typical schedule prepared by a planner or project manager in a home office is
ineffective, especially if the team members are not committed to it or believe it is
inaccurate or impossible to achieve.
the foremen, group leaders or crew chiefs who will actually do the work participate in
the initial preparation and review of the Make Ready Schedule and Weekly Work
Plans.
Resources required for deployment include:
a means (computer program and printer, white board or other) to prepare the
necessary Make Ready Schedule and Weekly Work Plans
Page | 26
The team must work together to get the project done: optimise the project not the
piece (especially not an individual contractors piece of the action)
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3.5.1 Deployment
The deployment process steps are to:
Page | 28
Start the session with a discussion by each member of their role and how they will
perform it.
In organising the sequence of post-it notes, pay particular attention to the handoff
requirements what each member needs prior to beginning their successor task. A joint
understanding of handoffs and what is required for each is the most important
difference in using this technique. Ensure that each team member agrees with his
predecessor and successor as to state of completion of the activity being discussed.
the target date established for the phase that will be Pull Planned
the team has some background training in Pull Planning and understanding of their
roles in the process. The foremen, group leaders or crew chiefs who will actually do
the work should participate in the Pull Plan.
adequate time has been allowed for the exercise to be completed and have resources
available to input the Pull Plan to the corporate scheduling system. A typical Pull Plan
is completed in 2 to 4 hours; however, if it is a large phase with many participants a
day or more might be required.
Required resources include a whiteboard, glass wall or long sheet of drafting paper, postit notes typically 3 x 5 or 4 by 6 of different colours (one colour for each group), felt
pens and space to congregate around the wall.
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3.6.1 Deployment
These meetings take place at workgroup, contractor and site levels. They enable
information, targets and results to flow up and down the site organisation.
The workgroup Information Centre Meetings happen as the pre-start meetings between
the supervisor and workgroup in the crib room, office or at the worksite (if a mobile
Information Centre Board is used).
The contractor Information Centre Meetings occur slightly later after each of the
workgroups are underway and involve managers and supervisors at the various
contractors offices.
The site Information Centre Meeting happens after this and involves the senior
management from the owner, EPCM and contractors coming together to review site
performance later in the morning.
Page | 31
At each meeting, one of the supervisors or managers leads the team through the metrics
on the board - reviewing the past 24 hours, looking ahead to the next 24 hours, week or
six weeks and raising any concerns from past performance or future issues.
Purpose
Audience
Frequency
Content
creator/maintainer
Workgroup
Information
Centre Meeting
Pre-start
meeting to
review how we
went yesterday
and specific
targets for today
Contractor
Supervisor and
Workgroup
Each Shift
Individual
workgroup KPIs
Contractor
Information Centre
Meeting
Review metrics from
past 24hrs, next
24hrs, 6 week look
ahead
EPCM and
Contractors
Daily
Project KPIs, Critical
Path
Daily
Project KPIs, risk
dashboard/issues log
Project Snapshot,
reviewing barriers to
progress (yellow and red
KPIs) and develop plans to
resolve
a short term board which contains visible, easy to understand metrics (you can tell
OK from NOK (not ok) in 3 seconds or less for each metric). Metrics are updated by
hand and only the metrics needed to run the site, contractor or work area are used.
a long term board which holds the master or phase schedule. Progress is tracked daily
or weekly here.
a problem solving board which enables raising, tracking and escalation of concerns.
Concerns are raised if a metric is NOK or the schedule is behind. 95% of concerns
should be solved at the level at which they are raised, with only 5% moving up to the
next level Information Centre Meeting.
Figure 17 shows some example Information Centre Meetings:
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The first step in the deployment process is to decide what levels of Information Centre
Meetings are required (Figure 18).
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Design of KPIs
High level project KPIs should be translated into KPIs for each contractor, and then for
each workgroup. Tradespeople can then see how day to day performance is linked to
overall project objectives.
Often a Value Driver Tree is used to break down the high level KPIs and make them into
something meaningful on a shift by shift basis. At the site level we may measure outputs
of construction, but as we translate this for use lower down we change to measuring
inputs to construction. If we take care of the inputs, the outputs should take care of
themselves.
The owner sets the high level KPIs then the EPCM and Contractors become involved in
the iteration of these and how they will be delivered. For example:
The owner of the KPI is made clear they have responsibility for updating the KPI by
hand on a daily basis
The KPI is easy to understand and it is clear whether it is OK or not (e.g. target line,
red or green areas of the graph, or red amber green to indicate status).
Source data is made readily available to simplify day to day update of the KPIs.
For each of these Information Centre Meetings:
order the magnetic white board and stationary necessary for the Information Centre
Board
find a location central to the group of people to attend the meetings in a shared area,
not someones office
determine the metrics to be used by working with the participants of the meeting
the meeting owner is key here (e.g. the supervisor for the workgroup, the manager for
the contractor, or the senior manager for the owner). What metrics do they need to
run their area, firm or site?
review safety metrics first - safety comes first at an Information Centre Meeting
display the metrics in draft form to get an idea of how they flow and what they look
like. This can be just sketched on a piece of A4 paper with marker pen and fixed to a
wall with blue tack.
remember the 3 second rule, can you tell OK from NOK in 3 seconds or less? Each
metric must have a clear target and be easy to update by hand.
create templates from your drafts and assign owners to ensure the metrics are filled
in and up to date before the meeting each day
Page | 34
Daily Information Centre Meetings are held which cover all personnel on site.
KPIs are clear and flow from the owner through the EPCM, the contractor and up to
the tradesperson, so that each individual knows that what they do on a daily basis
contributes to the delivery of the project and whether this is meeting the target or
not.
Safety metrics are key at the Information Centre Meetings and are always the first
things to be reviewed.
magnetic whiteboards
magnets
printed and laminated headings for Information Centre Boards and metrics
ticks and crosses to indicate which metrics are OK and NOK
printed templates for the measures
Holding the pen engages the brain and forces a sense of ownership of the metric that
printing out a graph and sticking it up does not.
Metrics should be updated by their real owners, not the LEAN coach, a secretary or
any other, once again holding the pen forces engagement thought and ownership.
Do we have to stand up?
Yes, Information Centre Meetings are short meetings (10 15 minutes). We are not there
to have a coffee and relax, standing up gives the meeting an energy and pace it would
not otherwise have.
Can we change the metrics?
Yes, challenging the metrics you are reviewing on a regular basis is healthy. It may be
that a particular issue has come up that you want to track specifically, or that the metrics
you have are not telling the whole story and you wish to add or replace something.
Why cant we problem solve at the meeting?
In LEAN we believe that problem solving requires the solver to go to the worksite, look at
the actual condition and thereby see what the problem really is (Go & See), then to ask
why this problem occurred and to continue to ask why until the root cause is discovered
(5 Whys). This cannot be done at a meeting.
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Sort do we have everything we need, but only those things we need, to accomplish
our task within the site, the work area or the office?
Set how should we best design our work site or area so that the areas, materials,
tools and equipment are in the safest, most efficient and best place. Visual
management is then used to set the workplace so an abnormal condition is easily
seen sign posting, demarcation, shadow boards, labelling, minimum/maximum
levels, numbering and colour coding all enable us to tell at a glance that we are set up
for success.
Shine bringing things to a clean and clear condition and keeping the workplace in
good order so that it is ready for use.
Standardise agreeing between the team the standard to which the workplace will
be kept, photographing this and displaying it so everyone is clear on how the work
place should look.
Sustain the leadership work necessary to keep the first 4Ss in place, the work of
auditing and visible leadership in the work place.
visually display whether expected daily performance was met - was today a good day
or a bad day?
See Section 3.6 Information Centre Meetings for more ideas on Visual Management.
3.7.1 Deployment
Each of the following steps should be done by the work team who use the site, area or
space, as they are the best judges of how their work area should be organised.
Sort:
EA
/
ory
AR
ent
er
Inv
nsf
LL
CE
al
RY
teri
GOMa
uce
Tra
/
Red
ell er:
als
teri
ER
MB
NU
TE
G
TA
DA
R
TO
CA
G
D
LO
TA
RE
?
KEEP
DISCARD
RED TAG
DECIDE
In the sort phase we eliminate any unnecessary items from our work area. If we are
undecided about an item, or think someone else may need it, we put a red tag on it
indicating what it is, where it was found, by whom and when. This item is then moved to
a quarantine area for one month to see if anyone else could use it (a list of red tag items
is sent around the site to inform others what is in the quarantine area). After this it is
discarded.
Set:
In the set phase we design the overall layout of the site/work area/office to
accommodate in the safest most efficient way the items we still need to work with. In
Figure 19 the scaffold yard is clearly laid out and enables the status of scaffolding to be
seen at a glance. Similarly, the shadow boards in Figure 20 make it easy to see which
tools are on hand and which are missing
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Shine:
In the shine phase we consider how to keep our work place in top condition initially this
may involve the deep clean and demarcation of a particular work site, or painting a
container storage area, or cleaning a stationary cupboard.
On an on-going basis this involves the mindset that the job or shift is not finished until
we have cleaned up.
Shine is not just about the tidy workplace though, we use cleaning as a form of inspection
checking that everything is present and that all of our tools and equipment are left in
good working order, ready for the next day.
Standardise:
The Standardise phase involves putting a standard around what we have achieved in the
first 3 Ss Sort, Set & Shine. This is documented with a photograph and displayed at the
workplace; in order that everyone coming into the workplace is reminded what the
workplace should look like and key elements within it (Figure 21).
Page | 40
Sustain
The final part of 5S is around sustaining results and what we have achieved with Sort,
Set, Shine & Standardise. In order to sustain our efforts, a value must be placed upon
them by the team and more importantly by the leaders in the organisation.
If our leaders are happy to wade through chaos in order to get to a job, then so will the
workers be. If our leaders see items out of standard, but pass by, others will start to
ignore them too. The leaders in the organisation are role models for the behaviour of the
tradesmen; they must recognise this and act upon it.
In order to sustain 5S and Visual Management, we set up a system of auditing going
out into the workplace, engaging with the team and asking some basic questions on the
5S status of an area. This is done by team leaders, superintendents, managers and senior
managers to send the message that 5S is an important aspect of the work.
Results of these audits (usually a mark out of 10) are monitored near the Information
Centres and fed back to the crews in a timely manner.
Once you have started the 5S, it is preferable to start the Sustain audit work as soon as
possible to prevent slipping back and also to demonstrate engagement of leadership in
the process.
Always allow the 5S to be done by the workers involved in the area if someone from
outside comes in to lay out their area the work will be sub-optimal and the workers will
feel no ownership for the work.
Recognise good work when it happens. Good examples of 5S or Visual Management can
be communicated in newsletters or recognised with a BBQ lunch or other such
acknowledgement.
Page | 41
Page | 42
3.7.3 Examples
Figure 22 shows before 5S and after 5S photos, resulting in a more organised workplace:
Before
After
Before
After
Before
After
Figure 23 shows a spaghetti diagram of a site with just one entrance, which was reconfigured to have four entrances, reducing congestion and providing easier access to
work fronts. Figure 24 shows a mimic board used to plan and problem-solve work fronts
and Figure 25 shows a 5S standard for a container.
Page | 43
Page | 44
3.7.4 Measurement
A good measure of the success of the 5S implementation is the number and frequency of
the audits done by leaders as well as the results from these audits
For further information on measurement criteria refer to Appendix 2.
Page | 45
forms the foundation for Continuous Improvement and the involvement of the
workforce in Continuous Improvement
is written by the team themselves to include a detailed description of the work; with
key safety, quality and knack points included
is valuable for training, with new workers being taken through the Standardised
Work Document to ensure that the task is clear and all safety, quality and knack
points are covered (knack points are small tricks of the trade that an experienced
person will have built up over the years)
is a work group based method of recording the safest, best quality and most efficient
way to do a particular job
Always involve the tradespeople in writing the document, it is not written by an engineer
and imposed upon the team, although engineers do have a sign off to ensure that any
engineering specifications are adhered to. Since the Standardised Work is written by the
team; it is owned by them and becomes a living document and the basis for Continuous
Improvement. Any improvements to the Standardised Work can be captured workers
have the mentality that I wrote it therefore I can improve it.
As with all things in LEAN, Go & See is a key part of Standardised Work. It cannot be
written from an office, but must be observed by the team out on the job.
Four Key Elements of Standardised Work (Figure 26)
The Standardised Work Chart is the front sheet of a Standardised Work, listing the steps
to be carried out within the process. This often has a layout diagram so that the
movement of tradespeople around the area can be mapped.
Work Element Sheets are the backing sheets. One Work Element Sheet is written for
every step in the Standardised Work Chart in order to explain the detail of the task.
A Work Balance Board is used when a crew works together on a task which has a number
of Standardised Works describing it. The Work Balance Board is used to visualise the
relative time the different Standardised Work activities take so that they can be balanced
across the crew.
The Standardised Work Audit carried out by leadership is critical to the sustainability and
use of Standardised Work.
3.8.1 Deployment
The first step in the process is to identify which key tasks will be the target of a
Standardised Work. These may be tasks that have historically had high HSE issues (e.g.
angle grinding work), quality issues (e.g. welding) or productivity issues (e.g. valve
installation).
Page | 46
release a team leader to team up with the most experienced or best tradespeople on
this task and watch the process, firstly noting down the high level steps for the
Standardised Work Chart (front sheet)
have the team leader and tradespeople work slowly through each step of the process,
taking photos and noting down any key safety (from JSA or other input), quality and
knack points to make a series of Work Element Sheets describing the detail for each
step
take this first draft of the Standardised Work (written up by the team leader and
tradespeople) to all of the people involved in doing this job (across crews or shifts) so
that everyone may have their input into it
once an agreed way has been established, have the tradespeople time themselves
doing the task as set out in the Standardised Work. A time is taken for each of the
Work Elements Sheets and a total time for the complete Standardised Work is arrived
at.
as times are put against each Work Element, it should be described as Value Added
(VA) to the customer, or Non Value Added (NVA or waste). VA is marked as green and
NVA as red on the Standardised Work Chart. This is reviewed to minimise the NVA.
when the Standardised Work is complete, have each crew sign off on this to ensure
everyone is working to the same Standard
have the engineer/safety/quality officer sign off on the work to ensure that it meets
any technical/safety specifications
If this Standardised Work is part of a number which all go together to make one
activity, use the Work Balance Board to balance the work across the crew
use Standardised Work for training, auditing and as the basis for Continuous
Improvement
Page | 47
Level
Sign off
Area
Manager
Person
Team Lead
Audit questions
OK / NOK
Date
Comment
Score out of 10
Improvement items to feedback at end of audit Resp
Standardised
Work Audit
Standardised
Work Chart
Work Balance Board
Time in Min
Takt Time Line
40
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
1
Work Balance
Board
Number of Standard
Work
Work Element
Sheet
Page | 48
tradespeople write the Standardised Work in order to give them ownership and the
ability to improve
an audit system is in place to ensure the value placed upon Standardised Work by the
management team is clear and the work is sustained.
The following resources are required for deployment:
initial training sessions are necessary for all the workers involved
agreed templates for Standardised Work (the Standardised Work Chart, Work
Element Sheet and Standardised Work Audit) are available.
Leadership, support and auditing are necessary from all of the management team to
enable Standardised Work to take hold, be sustained, and lead to Continuous
Improvement in the construction environment. Desired behaviours from the leaders on
site include support for the technique and an understanding of the value in capturing
best practice in the form of Standardised Work holds.
Desired behaviours from the tradespeople include a willingness to take part in the
writing of Standardised Work and its improvement thereafter. The value of capturing
their experience and sharing techniques to do a job should be recognised.
Page | 49
Page | 50
Page | 51
Page | 52
3.8.4 Measurement
A good measure for the success of the Standardised Work implementation is the number
of Standardised Work tasks documented and the improvement in safety, quality and
productivity of those.
Another measure is the number and frequency of the audits done by leaders as well as
the results from these audits
For further information on measurement criteria refer to Appendix 2.
Page | 53
People
involved
Continuous Improvement
Strategic
Managers
Engineers
Tactical
Tradesmen Operational
24
Hrs
~1
Week
~ 3+
Months
Timescale
Page | 54
3.9.1 Deployment
Standardisation
Continuous Improvement depends on Standardisation be this 5S standards for layout
or Standardised Work Sheets for the task itself. For instance, if different tradespeople do
the same job in different ways, an improvement idea from one of them may affect his
method positively, but may have no effect, or a negative effect on anothers method.
Only when we have these standards in place can we begin to measure the process and
achieve the foundation for Continuous Improvement. If no standards exist for a task or
area the first job must be to put in place these standards.
Executive Direction
It is usual to set an Executive Direction for Continuous Improvement; this is set
depending upon the stage in the lifecycle we are at in a build. For example:
All members of staff have initial training in Standardised Work, 5S and CI. After this,
ongoing training should be provided to further improve skills and incorporate new
employees.
Page | 55
If a tradesman has an idea about improving their process they discuss it with their
crew leader and crew.
The tradesperson is given time/covered by the crew leader while they trial their idea.
The crew leader helps them to structure this as an experiment, using the PDCA cycle,
so they can objectively measure if the trial is good or no good.
Act
Plan
Check
Do
The tradesperson evaluates the trial, good or bad they are congratulated what did
they learn? It is particularly important to congratulate failures, because a
tradesperson who is afraid to fail will be afraid to try.
If the outcome is good, the Standardised Work or 5S standard is updated to reflect the
new idea and all personnel are trained.
Many practices exist to facilitate Operational Continuous Improvement in a LEAN
organisation:
o
monthly CI Action Meetings where the work is stopped for 30 minutes to allow
crews time for CI
o
a CI Support Team may exist made up of 4-5 people who are able to provide
practical support to CI activities around the organisation (e.g. a team leader, team
members and maintenance personnel)
o
CI competitions and recognition for the best ideas
o
CI targets against which all teams are monitored.
If a crew leader feels that his crew is falling behind with their Kaizen targets he may
request a Tactical CI Workshop to address a specific problem or help in general.
Page | 56
The manager of the area will allocate support from other crew leaders,
superintendents, tradespeople or engineers to act as Fresh Eyes in a week long Go &
See with the crew.
The majority of the week is spent on the job, with the crew discussing, agreeing and
trialling new ideas for improvement, again using the PDCA cycle.
The aim is to get most of the new ideas implemented within the week, so this is seen
as a step change for the crew.
risk analysis and FMEA (Failure Mode and Effects Analysis) are used to assess the
change
Master Schedule and Detail Schedules for the change are put in place
Standardised Work/5S may need to have new standards across a range of areas
training plans are put in place to roll out the new work methods.
Boundary
This is not to say that ideas outside of these boundaries may not be put forward, but
these will need external testing or verification and the focus is on what the crew can
achieve for themselves.
Ideas which are implemented are not just good ideas they are good ideas which are
converted into standards, trained, audited and sustained to provide a basis for the next
Continuous Improvement idea.
A Continuous Improvement vision should be set which takes into account the need for
standards first then Continuous Improvement, but does set some Executive Direction
and Targets for each of the crews.
Within the crews, Continuous Improvement should be discussed at the pre-start
Information Centre Meetings. Targets (and performance against them) should be clear.
4. The board is
moved and
improved and the 5S
Std is updated
1. Frustration occurs
when tools are not
located correctly
2. The tradesman
explains his idea to
his crew leader
Page | 58
3.9.4 Measurement
A good measure for the success of the Continuous Improvement program is the number
of people trained in the Continuous Improvement and the number of Continuous
Improvement ideas implemented.
The overall success will be measured in terms of safety, quality and productivity
improvements, which should be visible as a results metric versus the Continuous
Improvement target given to each of the crews.
For further information on measurement criteria refer to Appendix 2.
Page | 59
boundary samples
error proofing
Instead of showing Good and Bad conditions, boundary samples are physical parts which
show the boundary of where Good changes to Bad. A boundary sample will show the
worst possible condition which is still acceptable any worse than this is No Good.
Page | 60
Situation 2:
Situation 1:
Example of a
bad fault in a
weld
Example of a
boundary fault
in a weld ie
this bad but no
worse is
acceptable
Is this fault
acceptable?
Clearly no.
detecting an error as it is made, or soon after it has been made, but before it reaches
the next operation.
Page | 61
Too many
Concerns
Standardised Work
& 5S / Visual Mgmnt
Stop Call Wait
Inventory
Chaotic
Construction
Just In Time
Information
Centres
Last Planner &
Pull Planning
As we travel through our LEAN journey, we build a more stable, more capable
construction system. We build confidence and expertise within our people and our
problem solving skills increase.
If we try to implement these advanced tools and techniques of Built in Quality
(particularly Stop, Call, Wait) and Just in Time earlier, we will be unable to cope with
them, as we do not have some of the fundamentals in place.
3.10.1
Deployment
Ideally, Quality should be built in at the start of a project and as a result of previous
lessons learnt. Once on site, the following should happen to identify causes of quality
problems:
All members of staff have an initial training on Standardised Work, 5S, Built in Quality
and Error Proofing.
A tradesperson sees a quality issue; stops work to call the supervisor and then waits
for his arrival.
The two discuss the issue and determine root cause (the 5 Whys may be used). Root
causes are much easier to determine, when you can see the issue in its raw state,
when it has only just happened (easier to see the smoking gun)
The immediate action is decided upon and the supervisor notes the quality issue.
Page | 62
At the end of the week, the supervisor reviews the quality issues and chooses one to
work on based on the severity of the issue, time lost or frequency of occurrences.
The supervisor then forms a small team with the tradespeople who raised the issue
and they refresh on the hierarchy of controls which they can put in place.
Safety Issues
3%
60%
Elimination
7%
Prevention
90%
Detection
Elimination
Machine
Breakdowns
Assembly
30%
Prevention
10%
Detection
Page | 63
The tradesperson evaluates the trial to find out what was learnt, good or bad they are
congratulated.
If the outcome is good, the Standardised Work or 5S standard is updated to reflect the
new error proofing technique/design and all personnel are trained.
3.10.2
Everyone involved Built in Quality and Error Proofing should receive training to
understand what this is and what is expected of them at the work site.
Time needs to be set aside on a weekly or monthly basis for Problem Solving on Quality
issues and Error Proofing as a result of issues seen. Examples of Error Proofing should be
available for all to see, as these aid understanding and spark additional ideas for
improvement.
A log of Quality issues should be kept by each supervisor for their area and the most
urgent issue tackled once per week or once per month (depending upon capability) to be
tackled.
Although we deal here mainly with Quality during the actual construction process, it is
vital to remember that this starts probably years before this with:
3.10.3
Zero defects are achieved because errors do not turn into defects ...if feedback and
action take place at the error stage
Shigeo Shingo 1986
Detection
Elimination
Prevention
Page | 64
50
60 70 80
40
30
110
120
90
100
20
10
130
Temp C140
Smith & Son
Wiltshire
Clear visual
management on gauges
of equipment ensure
correct settings
COOLANT
TEMPERATURE
Page | 65
In more advanced LEAN organisations, warnings are sounded when work stops due to a
quality defect or equipment breakdown, so that supervisors can respond to this:
Page | 66
A cover prevents
damage to a car in a
garage
If welding defects are an issue, change the welding type or replace welded with
bolted or glued sections.
If many different gaskets and pumps are an issue, rationalise the design to one
or two different types (this may cost slightly more in terms of pumps and
gaskets, but will save time and money on construction quality).
If many different bolts are an issue, commonise.
Page | 67
3.10.4
Measurement
A good measure for the success of the Built in Quality and Error Proofing program is the
number of people trained in this and the number of Error Proofing ideas implemented.
Overall success will be measured in terms of quality on site and the levels of rework
experienced.
For further information on measurement criteria refer to Appendix 2.
3.10.5
address the worker to supervisor ratio, more than 1:12 will not allow Stop, Call, Wait
ask workers to record their quality issues at the morning Information Centres and
choose the top issue to tackle every month
do a Go & See and 5 Whys to determine the root cause of the issue
Page | 68
Quality fast detection and corrections, and higher quality of parts purchased
When we do this we benefit from improved lead times and lower inventory holding cost,
but we also expose problems which we may have hidden with excess inventory.
Page | 69
We then rely upon the problem solving capabilities that the previous LEAN techniques
have helped us develop in order to quickly address these issues.
Inventory Control
Once we can visualise the Value Stream we can start to take control over it (Figure 33).
This includes robust inventory control methods to ensure that material needed for work
fronts is:
ordered
delivered on site (or to controlled off-site laydown areas with good 5S)
present and in a known location on site (controlled laydown areas with good 5S and
physically confirmed by Materials Management personnel)
Visual Confirmation
of parts
Work Front:
This is done at
Daily Schedule
Clearly this relies upon a robust detailed Bill of Materials (BOM) being available for
ordering and scheduling deliveries.
Page | 70
KANBAN
Ticket
Route
Cycle
Shortage
Date &
Time
Stock
Remaining
(Hrs)
Expected
Delivery
Time
Actual
Delivery
Time
MP&L
Owner
JCI
11/11
09:30
6 hrs
13:30
12:45
J Bloggs
3+ month
Order
PARTS
POINT
OF FIT
PULL SYSTEM
REPLENISHMENT BASED ORDER
Calc/order/build/deliver
6 week order
Weekly
confirmation
REPLENISHMENT
ORDERING
BUILD SEQUENCE
ORDER (PRE-BUILD):
POPULATE STAGING AREA
SEQUENCED DELIVERY
Before Usage
TIME
After Usage
Page | 71
LEAN normally uses a combination of Push and Pull Systems. A traditional Push System is
used for capacity planning as well as 12 month, 6 month and 3 month schedules. Then,
depending upon the materials, Push scheduling will continue, or Pull replenishment
ordering will occur.
For example, if we know we will use 20,000 of the most common gaskets in our build,
spaced fairly evenly across two years, we may decide to keep 800 (four weeks worth) in a
supermarket and have our supplier replenish this on a weekly basis.
Replenishment takes place either by the supplier visiting the site to refill bins/pallets of
the gaskets or by a physical or electronic reorder card (kanban) being posted to the
supplier.
3.11.1
Deployment
To enable Just in Time we create a Plan for Every Part. This is a large database or spread
sheet where each different part number is listed. The following are inputs needed to
establish the Plan for Every Part:
Container information such as number per shipping unit, type of shipping unit
demand information.
Based upon these inputs we can determine:
what information necessary for labelling and bar coding will be stored and how labels
printed from the system/sent to the supplier from this system will be created
how location addresses will be allocated (e.g. off site, warehouse, laydown area) and
the size of individual laydown areas
3.11.2
Everyone within Materials Management should receive training to understand what Just
in Time is and the purpose for it in their workplace. Training sessions for suppliers of
materials should also be undertaken.
For Just in Time to work, a robust and detailed Bill of Materials must be in existence.
Page | 72
An audit system is also necessary for Materials Management to check the actual state of
the inventory at site. In order for this to be done efficiently, 5S must be fully
implemented at all of the laydown and warehousing areas.
Often organisations try to implement Just in Time first in their LEAN journey. This is not
advisable as it is one of the more difficult techniques. JIT builds upon the base of 5S,
Standardised Work, Problem Solving and Continuous Improvement developed in the
other tools (see Section 3.10 Built in Quality).
3.11.3
Measurement
Good measures of the successful implementation of Just in Time include space saved in
laydown areas and reduced numbers of part outages.
Another measure is the number of parts/inventory audits done by Materials
Management and the results of these audits in terms of estimated quantity versus
actual quantity.
For further information on measurement criteria refer to Appendix 2.
3.11.4
Page | 73
4 Helpful Resources
4.1 A3 Reports
In very simple terms, an A3 report is a story shown on an A3 piece of paper. This can be
a problem-solving report, a proposal report or a status report. The format of each of
these reports is standardised to a degree, but the author(s) may modify the report to best
meet their needs. The goal is a report that can be reviewed and understood by an outside
party in less than 5 minutes. The information on an A3 should be reflected in pictures,
graphs, tables or drawings wherever possible. Lots of text does not aid in quickly
understanding the story. If you must use text, use bullet points rather than sentences.
Hand drawn A3s are the best way to start. Eventually, displaying the story on a computer
generated (typically Word, Excel or PowerPoint) form makes it easier to maintain a library
of A3s and ensures consistency, however the thought process and team work is just as
well represented by hand drawn sketches.
Deployment Process Steps (for a problem solving A3):
Step Two - Current Situation - Observe the work process first hand, document
observations, observe source of problems. Quantify the magnitude of a problem with
metrics if possible. Diagrams, charts, sketches, verbiage are appropriate; whatever is
the most efficient way of describing the current state.
Step Three - Root Cause Analysis - With a good understanding of how the process
currently works, it is time to figure out what the root causes are for the errors or
inefficiencies. To accomplish this, make a list of the main problems and conduct a
Five Why to find the root cause of those issues. The Final Why creates a checklist for
what is needed later in the Implementation Plan.
Step Four - Target Condition - Now that the current work is understood, think about a
better way that work could be done. How will the work get done with
countermeasures in place? Insert a diagram or verbiage illustrating how work will
take place. Note or list any countermeasures that will address the root causes
identified earlier. Predict the expected improvement.
Step Five - Implementation - List the actions which must be done in order to realise
the Target Condition, along with an individual responsible for the action and a due
date. Add any other items that are relevant to the implementation.
Step Six - Follow Up - Note the plan to measure the effectiveness of the proposed
change, indicate when it will be measured and by whom. After follow up, record
results of the implementation with the date recorded. This will check the work and
determine if adjustments need to be made to the plan.
Tools and Templates
Sobek, D & Smalley, A, 2008, Understanding A3 Thinking: A Critical Component of Toyotas
PDCA Management System, CRC Press New York.
Shook, J, 2008, Managing to Learn: Using the A3 management process to solve problems,
gain agreement, mentor and lead, Lean Enterprises Institute Inc., USA.
Liker, J & Meier, D, 2006, The Toyota Way Fieldbook. A Practical Guide for Implementing
Toyotas 4Ps, Chapter 18, McGraw Hill, USA
Page | 74
Page | 75
Dennis, P, 2006, Getting the Right Things Done: A leader's guide to Planning and
Execution, Lean Enterprises Institute Inc., USA
Goldratt, E, 1997, Critical Chain, North River Press.
Kennedy, M, 2003, Product Development for the Lean Enterprise: Why Toyota's System Is
Four Times More Productive and How You Can Implement It, Oaklea Press.
Kennedy, M, 2008, Ready, Set, Dominate: Implement Toyota's Set-Based Learning for
Developing Products and Nobody Can Catch You, Oaklea Press.
Kymmell, W, 2008, Building Information Modelling Planning and Managing Construction
Projects with 4D CAD and Simulations, McGraw Hill.
Liker, J, 2003 The Toyota Way, 14 Management Principles from the World's Greatest
Manufacturer (Principle 7: Use Visual Control So No Problems Are Hidden), McGraw-Hill,
USA.
Liker, J and Meier, D, 2006, The Toyota Way Fieldbook: A Practical Guide to Implementing
Toyota's 4Ps, McGraw-Hill.
Macomber, H & Barberio, J, 2007, Target-Value Design: Nine Foundational Practices for
Delivering Surprising Client Value, Lean Project Consulting, Inc.
Mann, DW, 2005, Creating a Lean Culture: Tools to Sustain Lean Conversions, Productivity
Press.
Ohno, T, 1988, Toyota Production System: Beyond Large Scale Production, Productivity
Press, New York.
Productivity Press Development Team, 1996, 5S for Operators, Productivity Press, New
York
Productivity Press Development Team, 2002, Standard Work for the Shopfloor,
Productivity Press, USA.
Productivity Press Development Team, 2003, Identifying Waste on the Shopfloor,
Productivity Press, New York.
Rother, M & Shook, J, 2003, Learning to See, Lean Enterprise Institute Inc., USA (the
original and best Value Stream Mapping book).
Rother, M, & Shook, J, 1999, Learning to See: Value Stream Mapping to Create Value and
Eliminate Muda, The Lean Enterprise Institute Inc.
Shingo, S, 1986, Zero Quality Control: Source Inspection and the Poke Yoke System,
Productivity Press, USA.
Shook, J, 2008, Managing to Learn: Using the A3 Management Process to Solve Problems,
Gain Agreement, Mentor and Lead, Lean Enterprises Institute Inc., USA.
Page | 76
Smith, D, 2000, The Measurement Nightmare: How the Theory of Constraints Can Resolve
Conflicting Strategies, Policies and Measures, St Lucie Press.
Spear, SJ, 2004, Learning to Lead at Toyota, Harvard Business Review, May 2004.
Spear, S & Bowen, K, 1999, Decoding the DNA of the Toyota Production System, Business
Review, Sept 1999
..
Page | 77
1 Aware
2 Ad-hoc
Few participants
understand waste or
know how to identify
and eliminate it.
Some awareness of CI
Types of waste
sometimes taught to
team members. Some
wastes and process
walks conducted.
Value determination
(who is customer)
understood
Some connection with
CI and improving
processes
Waste eliminated in
significant areas, and
stories spread about
LEAN processes
achieved.
New projects address
potential waste.
Processes in new
projects address,
uncover, and
eliminate waste.
Connects CI with
improving internal
processes
Waste identified in
some areas and
among various
participants.
Waste sometimes a
topic of investigation
or discussion in
planning and review.
3 Localised
4 Integrated
Waste reduction is
ongoing part of work.
New and current
projects can
demonstrate waste
reduction and
elimination in various
areas.
Architects, engineers,
contractors, and subs
vigilant and skilled in
reducing and
eliminating waste.
Connects CI with all
process improvements
Architects, engineers,
contractors, and subs
vigilant and skilled in
reducing and
eliminating waste.
Operational and
Tactical CI is common
5 Best In Class
All participants
practice waste
elimination and
prevention in project
activities.
Savings and
efficiencies obvious
from ongoing and
integrated work to
eliminate waste.
Visitors regularly
remark on
exceptionally clean
and orderly sites.
Page | 78
Level
Recommended Practice
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some limited
knowledge or practice
of Last Planner
System.
No regular education
in Last Planner System
in place.
Steadily increasing
PPC
Team and
management take
steps to learn from
and minimise
variances.
PPC and variances are
part of project
evaluation.
Page | 79
Level
Recommended Practice
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Some knowledge or
practice of Pull
Planning. No regular
education on Pull
Planning in place.
Pull Planning is
integrated in
designing and
building facilities.
All participants
practice Pull Planning
in their own
organisations.
Phased scheduling
approach to identify
major handoffs
Few plans or
schedules have been
developed in a
collaborative fashion
Pull Planning is
initiated by LEAN SME
or External Coach
when performed.
Schedule
improvement and
production efficiencies
from Pull Planning
apparent to those
participating in
specific projects
External coaching
used to support team
leaders
Pull Planning
integrates with other
project schedules and
plans
Internal coaching
done by team leaders
Savings and
efficiencies from Pull
Planning are
quantifiable.
Pull Planning
Page | 80
Level
Recommended Practice
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Target budget
developed during
design process but set
after design
completion
Target budget
developed for each
element cluster
Multi-functional
teams are responsible
for each cluster
Target budget
developed and set
early in design by
integrated team
Cost is a design
element considered
with others such as
through-put,
constructability,
safety, etc.
Target budget is set
prior to design and
tracked periodically
Visual controls in
place for team to track
cost status
Progress above or
below the target cost
is discussed at every
team meeting
Designers, builders,
and end users share
the responsibility for
assessing value and
for selecting how the
value is produced.
Real time cost updates
with design updates
Budget allocations are
moved freely across
clusters to meet
project target budget
A mechanism and
visual display is in
place to evaluate the
design against the
budget.
Scheduled ongoing
reviews track
achievement of
targets.
Scope and cost are
kept tightly aligned
through frequent
estimate updates and
reconciliations
Page | 81
Level
Recommended Practice
1 Aware
3 Localised
Some 3D modelling
3D modelling
overdone
(unnecessary detail or
components)
Drawings on FTP site
Architect or engineer
leads BIM
Clash detection
Modelling done only
as it adds value to
project
Architect or engineer
hands BIM model off
to Construction after
Detailed Design
Engineers design
respective systems.
Drawing coordination
happens at discrete
milestones.
Reduced RFIs and
change orders
Building Information
Modelling - BIM
(expanded 3D CAD)
2 Ad-hoc
4 Integrated
Estimating is based on
BIM
Drawings on
Integrated Server (Big
Room)
Architect hands BIM
off to Construction
Management after
Criteria Design
BIM is available on site
for use by craftsmen
BIM model is used to
determine cost
options by varying
element attributes.
Incidental RFIs from
trades not involved in
design process.
Design and drawing
work is in real time
with multiple
designers
BIM used to track
weekly digital build
Less clash detection is
needed as some
coordination is
performed in real time
5 Best In Class
Database for as-built
use by Facilities
Construction
Management leads
BIM use
Digital prototyping
and construction
simulation
Page | 82
Level
Recommended Practice
Information Centre
Meetings
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
Engineers, contractors,
and subs measured on
adherence to detailed
plan designed by small
group of architects no
longer working on
project.
Some process
measures determined,
but not distinguished
from outcome
measures.
Overall project
performance against
metrics tracked at
milestones
Process measures
identified and
approved for
conducting LEAN
design and
construction.
Metric performances
tracked at Information
Centre meetings
Managers and
executives more
concerned about
problem solving, A3s,
and alignment with
annual goals.
Metric performances
tracked real-time at
Information Centre
Meetings
Measures for
achievement of LEAN
construction goals are
developed, but
tracking and review of
performance is
outside of worksite
and away from design
and construction
processes.
Information Centres
established but
meetings only in some
areas
Percent Plan Complete
(PPC) tracked on
weekly basis as part of
Last Planner approach.
Visual management
used
Information Centre
Meetings are daily,
disciplined gathering
with some problem
solving evident
Target resets based on
performance need
Customer
communications
(memo,
communication plan,
presentations, etc.)
5 Best In Class
Abundant use of A3s
and problem-solving is
obvious, documented,
and leading savings
and efficiencies,
replacing systems for
elaborate tracking of
measures.
Metric performances
tracked at set level
real-time Information
Centre Meetings
Information Centre
Meetings are the main
communication
forums for the project.
They are held daily
and robust problem
solving stems from
the meetings
Problems are closed
out and tracked to
ensure robust
solutions are in place
Page | 83
Level
Recommended Practice
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
A few participants
understand
Standardised Work
and how to
implement it
Standardised Work
training is given
Some supervisors are
allowing time for their
Tradespeople to write
Standardised Work,
but on an ad hoc basis
No evidence of
Standardised Work
written by the teams
themselves
Some high level
Standard Operating
Procedures
Some Standard
Operating Procedures
have input from the
Tradespeople
Some Standardised
Work being written
Many Standardised
Work documents are
being written
Standardised Work is
used to train new
starters
Standardised Work is
starting to be used as
a basis for CI by the
crews
Standardised Work
includes value added
and non-value added
(necessary and not)
timings
Standardised Work
documents exist and
are being used actively
for training and CI
Supervisors and
Managers are auditing
against the
Standardised Work in
places
Savings and
efficiencies obvious
from the use of
Standardised Work
All key tasks on site
have Standardised
Work
Page | 84
Level
Recommended Practice
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
5S and Visual
Management add to
the safety, quality and
productivity of the site
Leadership beliefs and
behaviours support 5S
implementation
CI opportunities are
made clearer by 5S
and Visual
Management
5S changes regularly
as CI ideas are
implemented
New Standards are
put in place as
improvements are
done
Ideas for Visual
management
techniques are
constantly improved
Page | 85
Level
Recommended Practice
Built in Quality
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Receiving Inspection
does sample testing
on robust parts
delivered
Standardised Work
and 5S are throughout
the site
Design and errorproofing devices
enable right first time
work
Some examples of
incoming parts
inspection is seen
Some examples of
error proofing are on
site
Very little root cause
problem solving is
done
Tradespeople alert
Supervisors to defects
but no robust system
is in place to react to
this
No rework is seen on
site
Parts arrive right first
time
People are clear on
how to do their jobs
and the quality
required
Stop Call Wait triggers
problem solving which
is robust and to root
cause
Page | 86
Level
Recommended Practice
1 Aware
2 Ad-hoc
3 Localised
4 Integrated
5 Best In Class
Systems are
integrated and a Plan
for Every Part has been
established which is
used locally
Localised staging
areas exist at work
faces usually
associated with well
managed laydown
areas
MM are mostly aware
of the parts on site
and most of their
locations
Page | 87
Debbie Hunt
Debbie Hunt worked at Toyota UK, Burnaston, firstly as a Quality Engineer then as a Purchasing
Technical Support Engineer, providing LEAN support to Toyotas European Suppliers improving
quality, delivery and productivity. Debbie was trained by Toyota in the UK and Japan.
Debbie left Toyota to gain an MBA from the Harvard Business School in their two year course, to
add to her 4 year Masters degree in Mechanical Engineering from Imperial College, London.
Debbie is now the Managing Director of LMR Pty Ltd.
In Australia she has worked with Woodside, Rio Tinto, BHP, OneSteel, Newcrest and others on
roll-outs of LEAN principles for multi-sited, multi-billion $ companies throughout Australia;
training, coaching and helping the Executives and General Managers to:
Make and sustain the Organisational Change that is needed to fully gain the benefits of LEAN
Identify the hard $ value which could then be realised using the LEAN tools.
Page | 88