Lean in Public Sector Workshop
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1 und Management im Baubetrieb Lean in Public Sector Workshop University of California,, Berkeley Prof. Dr.-Ing. Fritz Gehbauer, M.S. March 2009
2 Contents 1 Existing or Emerging Models in the Private Sector 2 Background Information of the Public Sector 3 How did lean arrive in Public Clients in Germany? 4 How to Catch Public Clients Attention, and Trigger Action, and keep Actions Alive 5 Deutsche Bahn, Tunnel Nittel, and some Consequences 6 Deutsche Bahn, Stuttgart 21 and NBS Projects, 5 Billion 7 Frankfurt Airport (Fraport) 8 Public Project City of Heidelberg 9 Current Approaches for Partnership Projects with Deutsche Bahn AG 10 Project Delivery in Partnership Client Contractor (designers and constructors) for Public Infrastructure Projects 2
3 1 Existing or Emerging Models in the Private Sector 5 D Partnering BIM in Infrastructure 3
4 The ZÜBLIN/STRABAG Z 5D construction process 4
5 The ZÜBLIN/STRABAG Z 5D construction process 5
6 The ZÜBLIN/STRABAG Z 5D construction process 6
7 The ZÜBLIN/STRABAG Z 5D construction process 7
8 The ZÜBLIN/STRABAG Z 5D construction process 8
9 The ZÜBLIN/STRABAG Z 5D construction process 9
10 The ZÜBLIN/STRABAG Z 5D construction process 10
11 The ZÜBLIN/STRABAG Z 5D construction process 11
12 The ZÜBLIN/STRABAG Z 5D construction process 12
13 The ZÜBLIN/STRABAG Z 5D construction process 13
14 The ZÜBLIN/STRABAG Z 5D construction process 14
15 The ZÜBLIN/STRABAG Z 5D construction process 15
16 The ZÜBLIN/STRABAG Z 5D construction process 16
17 The ZÜBLIN/STRABAG Z 5D construction process 17
18 The ZÜBLIN/STRABAG Z 5D construction process 18
19 Partnering 19
20 Partnering 20
21 Partnering 21
22 Partnering 22
23 Partnering 23
24 Partnering 24
25 Partnering 25
26 Partnering 26
27 Partnering 27
28 Partnering 28
29 Partnering 29
30 Partnering 30
31 Partnering 31
32 BIM and automation in Infrastructure sector Andreas Haugbotn ViaNova Plan og Traffic, Norway LEAN seminar January
33 BIM and automation in Infrastructure sector Courtesy of: Andreas Haugbotn, ViaNova Plan og Traffic, Norway 33
34 BIM and automation in Infrastructure sector Norway has been pushing the boundaries for a number of years Public Private Partnership (PPP); HW 44 Kleppe ring road outside Stavanger the oil capital of Norway Skanska NRA - Vianova HW 150 Oslo Ring Road - NRA Tram line Oslo og Bærum KTP PPP E6 Marienborgtunnelen Trondheim Skanska NRA - Vianova Courtesy of: Andreas Haugbotn, ViaNova Plan og Traffic, Norway 34
35 BIM and automation in Infrastructure sector Software: AutoCAD / Novapoint Different SW; exchange in DWG; xyz, cross section, material Common viewer; Virtual Map 5.0 Important functionality : Groups and viewpoints To-Do; automated clash control Show viewer in demo later Courtesy of: Andreas Haugbotn, ViaNova Plan og Traffic, Norway 35
36 BIM and automation in Infrastructure sector Civil Engineering Design models - Lowering costs and Increasing Quality - Cost savings: Saves excavation and fill costs using effective machine control systems Reduction in setting out errors 2% 5% Reduced conflict situations Easier to plan the work flow Fewer conflicts with land owners Courtesy of: Andreas Haugbotn, ViaNova Plan og Traffic, Norway 36
37 BIM and automation in Infrastructure sector Practical use; E6 Marienborg Courtesy of: Andreas Haugbotn, ViaNova Plan og Traffic, Norway 37
38 BIM and automation in Infrastructure sector Conclusions Everything in 3D possible in today software Daily use in several disciplines in ViaNova Integrated part of design work gives quick updates Pushes even more disciplines to do 3D-design Coordinating is a big issue, - before start up! Common rules and understanding is a must for dataflow Use and active customers pushes the development; Skanska and Norwegian Road Authorities are on track => Optimised solutions, saved money, less errors and quicker construction Courtesy of: Andreas Haugbotn, ViaNova Plan og Traffic, Norway 38
39 2 Background Information of the Public Sector 39
40 General Information - VOB compulsory for public clients - 60% of all major construction work is handled by public clients - Bad design (low fees) - Inflexible tenders - Co-operation full of tension - Low payment morale - Wasteful claim and anti-claim management 40
41 General Information - Extra work through Lean Meetings? - Few know about LMC and if they do, it s not through their profession but private interests and contacts - Few cip-willing people - Cost-benefit? - Few publications; often only in brochures of firms - Standardization ( geht nicht! -> Dt. Bahn) 41
42 Great Task From: everything is different in construction (especially variation), therefore, we cannot apply lean production To: because it is different (e.g. high variation) we have to change (higher potential of improvements) 42
43 3 How did lean arrive in Public Clients in Germany? -> by chance (Hambach) 43
44 Design and Build: Refurbishment of a Castle 44
45 Design and Build: Refurbishment of a Castle 45
46 Project Organization Present state Owner A/E GC Sub Sub Sub Sub Sub Sub - no co-operation between subcontractors - they request information from GC/AE 46
47 Project Organization Hambach Castle project organization Owner Co-ordination Designer - Designer- Designer Spec. contr. Spec. contr. Spec. contr. Co-operation Communication Facilitated self-control 47
48 Project Organization Hambach Castle win win - Through stabilization - Transparency and predictability - Contractors got contracts for second and third phases - Tender regulations? - More competitive by eliminating risk Very important message! 48
49 4 How to Catch Public Clients Attention, and Trigger Action, and keep Actions Alive 49
50 How to get public clients ears - Socializing of buffers - Choreography - Optimum - Holland - Apple tree - Have answers to FAQs - Golden Gate 50
51 DBahn: Electronic Version of CPP 51
52 DBahn: Electronic Version of CPP 52
53 The End before the Beginning 53
54 Lean Managment Optimum and Suboptimum 54
55 Example from a Design Firm People 99% busy, but the "work" is 99% idle Work 55
56 Lean starts small but with fruit 56
57 A lean tree can develop 57
58 Feedback (example) FAQs S21 NBS Won t function because of differing interests Different interests result from contract system (contracts do not reward contributions to project success) - Won t function because of human factor Will function because of human factor (eliminate stereotypes) - Conveyor belts or trucks You won t get what you need - Power of client not applied in a just way Development of trust (help from outside) 58
59 Waste and Disconnection of Design and Process Example Mering: Unnecessary Rectification Work 59
60 Cathedral Hill Hospital 60
61 5 Deutsche Bahn, Tunnel Nittel, and some Consequences 61
62 DB Tunnel Nittel Chapter 3 of the General Conditions 3. Application of co-operative execution planning a Philosophy and Background - cooperation - reliabilty - integrated project team -pull -flow -trust - value 62
63 DB Tunnel Nittel b Activities and Procedures - Co-operative execution planning explanation - PEA Value - Meeting Schedules and Venues - Decision Makers in LP Meetings 63
64 DB Tunnel Nittel
65 DB Tunnel Nittel 65
66 DB Tunnel Nittel 66
67 Deutsche Bahn Publication
68 Deutsche Bahn Publication
69 6 Deutsche Bahn Stuttgart 21 and NBS Projects 5 Billion EURO 69
70 Railway Project Stuttgart - Ulm Stuttgart 21: New central station New airport station New approaches, 60 km of tunnels New line Wendlingen (near Stuttgart) Ulm: Complete new highspeed line incl. 60 km of tunnels Courtesy: Deutsche Bahn AG 70
71 Project Overview S 21 ~ NBS 71
72 Stuttgart 21 Existing Lines 72
73 Stuttgart 21 New Lines PFA 1.6 b Abstellbahnhof PFA 1.6 a Zuführung Ober-/ Untertürkheim PFA 1.1: PFA 1.2: PFA 1.3: PFA 1.4: PFA 1.5: PFA 1.6a: PFA 1.6b: rechtskräftiger Planfeststellungsbeschluss Planfeststellungsbeschluss Beim EBA zur erneuten Prüfung Beschlussbearbeitung EBA rechtskräftiger Planfeststellungsbeschluss Planfeststellungsbeschluss Beim EBA zur Prüfung 73
74 S 21 Stuttgart Main Station 74
75 Stuttgart 21 Stuttgart s future Main Station 75
76 Stuttgart 21 New Main Station 76
77 Stuttgart Railroad and City Development 77
78 Stuttgart 21 / NBS Wendlingen Ulm Alignment close to Autobahn 78
79 NBS Wendlingen Ulm Filstalbrücke 79
80 DB Stuttgart Lean Vision Preamble The overall project management shall be supported by the method of Lean Management im Bauwesen (LMB) (Lean Management in Construction). Basic principle of the lean working method is that all project participants with client, contractors, and consultants accept the project outcome as their primary focus. The approach is based on intensive cooperation of all contractual parties. All energy is directed towards early detection and solution of problems. In the ideal case the partners refrain from aggressive claim and anti claim management and concentrate their resources on effective project work. 80
81 DB Stuttgart Acceptance of Lean Hero Power Lean? Let s see S 21 N B S Station Stuttgart Access Tunnels Airport Station Tunnels + open section Alb up 2 Tunnels Major Bridge Open section + Autobahn Alb down Tunnel Station Ulm No No No Maybe Yes No No No Yes Yes Yes 81
82 82
83 83
84 84
85 7 Frankfurt Airport (Fraport( Fraport) - Terminal 1C: Extension and Refurbishment under Airport Operation - Ongoing Contract: Delays, Claims, and Counteralarms, Fighting - Try for the rest of the project: Peace, Cooperation, Project Focus 85
86 8 Public Project City of Heidelberg Bring the City back to the River 86
87 87
88 88
89 89
90 90/30
91 9 Current Approaches for Partnership Projects with Deutsche Bahn AG 91
92 Deutsche Bahn Partnering Model 1 92
93 93
94 94
95 95
96 Deutsche Bahn Partnering Model 2 Risk Identification Customer s Internal Risk Management Risks to take Costumer s project risks Risks relevant to co-operation Residual Risks RL Specifications Budgeting etc. Planning Risk Register Approval procedure Tendering Company take-over Internal safety measures Tender documents 96/30
97 Capping of Risk Sums Competition and Incentive Concept for Risks Cap of risk sums Constructor s savings Risk Offer Payment of partial savings Contract sum Occurred risk plus contract sum Competition Incentive 97
98 10 Research Project Project Delivery in Partnership Client Contractor (designers and constructors) for Public Infrastructure Projects Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 98
99 99
100 11 Co-operative operative Project Delivery SITUATION: RISK OF CONFLICT - no partnership - successful project vs. different individual interests - often project is not the main focus - conflicts, low efficiency, no value creation - extremely hard competition Client (AG) Contractor (AN) maximum quality sufficient minimum costs profit oriented Fast time appropriate Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 100
101 Co-operative operative Project Delivery 10% Interviewed: AG + AN Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 101
102 Co-operative operative Project Delivery Are you content with the present way of cooperations? Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 102
103 Co-operative operative Project Delivery Objectives of the Research: WIN - WIN A. Fewer conflicts, improved project climate B. Higher value generation C. Faster (decision making, fewer disruptions) D. Better solutions, knowledge transfer (learn from each other) E. Higher efficiency F. Avoid court cases Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 103
104 Co-operative operative Project Delivery Partners share in Financing of Research Project Associations 104
105 Co-operative operative Project Delivery: : Content of Guideline Preambel Module 1 Module 2 Module 3 Module 4 Module 5 Module 6 Project Definition Defined processes to handle changes Risk identification and distribution Joint generation, processing and using of defined project data Clear regulations for decision making and authority Clear regulations for avoiding, handling, and resolving of conflicts Module 7 Optimization of project through incentives Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 105
106 Co-operative operative Project Delivery Pilot Projects Guideline development Pilots Review Release for Application Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 106
107 Co-operative operative Project Delivery Pilot Projects - typical, complex, not too small - construction period approx. 1-2,5 years - Test of the whole model (guidelines) Autobahn State Road Railway Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 107
108 Co-operative operative Project Delivery Pilots will be facilitated through: Tender and award Execution Evaluation Support AG Train AG Answer questions of tenderers Info - events Train AN Provide reviews Record experiences Knowledge Management Evaluation Review and Amendments Release Courtesy of: Prof. Dr.-Ing. K. Spang, Kassel University 108
109 und Management im Baubetrieb 12 A new form of contracting Competitive Dialogue (Wettbewerblicher Dialog)
110 4 Forms of Contracting in Public 1. Open competive bidding 2. Selected bidding 3.Negotiation 4.Competitive dialogue Nos 3 and 4 are complementary Strict rule: only if project is complex and cannot fully be defined by the owner.
111 Process of Competitive Dialogue Publication in EU Requests for dialogue Requests for bids Contract Phase 1: competition for participation Phase 2: dialogues Phase 3: bididng 111
112 Process of Competitive Dialogue Phase 1: Competition for participation (in dialogue) Qualification References Prognosis 112
113 Process of Competitive Dialogue Phase 2: Dialogues Looking for solutions With one company at a time Stepwise approach (work structure) Proposals for solutions must be feasible for bidding 113
114 Process of Competitive Dialogue Phase 3: Bidding Offers -> Contract No negotiations any more -> Selected bidding with previous technical discussion -> No alliancing, no IFoA
115 Upcoming Event Lean in Public Sector Workshop December 10 & 11, 2009 University of Karlsruhe, Germany Institute for Technology and Management in Construction Prof. Dr.-Ing. Fritz Gehbauer, M.S. 115
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