Lean Construction A New Path for the Construction Industry

Transcription

1 Lean Construction A New Path for the Construction Industry Peter Meijnen Porsche Consulting GmbH Oslo, 20 May 2015 Source:

2 Porsche Consulting - 20 years experience in consulting business Parent company: Dr. Ing. h.c. F. Porsche AG Foundation: 1994 Revenue*: 90,2 million Employees: 372 (December 2014) Revenue: Consulting focus: Locations: 70% outside of Volkswagen Group Operational Excellence Bietigheim-Bissingen (Germany) Hamburg (Germany) Milan (Italy) São Paulo (Brazil) Atlanta (USA) Shanghai (China) * FY 2014 Source: Porsche Consulting 2 Porsche Consulting

3 Porsche Consulting operates in many sectors Extract Automotive industry and suppliers Aerospace Services Industrial equipment Consumer goods and trade Construction industry Source: Porsche Consulting 3

4 The greatest challenge in the building industry is meeting cost and deadline targets 1950s Today Cost increase: 167% Construction time extension: > 1 year Cost increase: 53%* Construction time extension: > 2 years * Reference: Cost framework ECB, against estimate from 2005 Source: Porsche Consulting, Der Spiegel (Issue 44/2013) 4

5 Reasons for not achieving targets on construction sites are quickly identified Decisions are not made in a timely manner Project partners do not function properly The weather is poor Each project is unique, problems always arise Source: Porsche Consulting; Photo: Istockphoto 5

6 Today the construction industry faces challenges similar to those of the automotive industry in the early 1990s High demand for rapid time-to-market/ increased number of customer requests High product variance, high part variance Low process orientation, orientation by department "Presumed market power" means that there is no search for root causes in companies Frequent order changes, planning during construction with adjustments High flexibility and choice of realization options Low process orientation, orientation by function "Presumed contracting power" leads to risk transfer Source: Porsche Consulting; Photo: Porsche AG, MOffice 6

7 Adaptation instead of copying Porsche s production system serves as an inspiration when optimizing processes in other industries, including construction Porsche Production System Methods & principles 4 principles Lean Construction System Flow Takt Pull Zero defect Adapt Understand Implement copying not possible Source: Porsche Consulting; Photo: Porsche AG, Fotolia 7

8 Lean work smarter, not harder Optimization through waste reduction Valueadding Not value-adding with obvious waste Not value-adding with hidden waste Source: Porsche Consulting, Photo: Panthermedia 8

9 In the construction industry, the different types of waste can be found at nearly every construction site Space Inventory Transport Deviation from plan Movement time Waiting time Defects Source: Porsche Consulting 9

10 We have experience along the complete construction value stream Design Build Operate Development/ Planning Construction Facility Management/ Revitalization Source: Porsche Consulting; Photo: Fotolia, Porsche AG 10

11 Lean Construction ensures stability, transparency and improvement in the dimensions quality, delivery reliability and costs 1 Project execution process Stability and transparency 2 Synchronized execution and quality management Quality 3 Construction logistics 4 5 Partner management Assembly-friendly product design (modular system) Costs Delivery reliability Will be described in more detail below Source: Porsche Consulting 11

12 Our strategy: From project to process management Process design according to general JIT* principles Process control through defined standard activities and capacity deployment Process improvement and stabilization through CIP** Project Ability to influence costs 100% Qualitative representation Lean approach: "Frontloading" Traditional approach Cost Waste Visible Value added Hidden Process level 1 50% V V n V W W n 0% Time W V *JIT = Just-in-time ** CIP = Continuous improvement process Source: Porsche Consulting 12

13 1 The project execution process provides transparency and synchronizes processes and progress measurements throughout the lifecycle of a project Process map Establishes synchronization and transparency Project organization Ensures communication at the project interfaces Q Lean project execution process C D Show the overall project status and shorten decision-making paths Key performance indicators Ensures continuous progress measurement and control Dynamic control Source: Porsche Consulting 13

14 2 Synchronized execution and quality management provides one overall plan for the whole construction project to be adhered to by all parties involved Takt: train of activities Detailed schedule Takt control Activity Takt area * Coupled, realigned and harmonized processes Synchronized and visualized detailed schedule Daily control of progress and quality Pull/Flow Takt Zero Defects Source: Porsche Consulting 14

15 Construction time reduced by 30% - project return increased by 1.4 percentage points Project example: Building construction "Precision workforce planning for subcontractors is already possible before construction" General Manager Richard Ditting GmbH Optimization approach Takt planning Takt control Subcontractor qualification Result "We finally have a method to efficiently manage our subcontractors" Reduction in construction time by 30% Increase in project return by 1.4 percentage points Project Manager Richard Ditting GmbH Source: Porsche Consulting 15

16 Increase in productivity by 28% - reduction in large equipment costs by 43% Project example: Pipeline construction Success factors Takt planning Takt control Results Increase in productivity by 28% Reduction in costs for large equipment by 43% Source: Porsche Consulting 16

17 Construction time reduced by 40% - increase in productivity by 52% Project example: Highway construction site Success factors Synchronized construction logistics Results Increase in hourly paving performance by 66% Increase in crew performance by 52% 65% less truck waiting time Reduction in construction time by 40% Source: auto motor und sport,

18 25% less throughput time 30 % less man hours Project Example: Completion of public spaces at the ship yard Success factors Lean order fulfillment process Dynamic takt planning and control Standardized and short-term quality control Results 25% reduction of throughput times 30% reduction in required man hours Source: Porsche Consulting 18

19 Success Story: Monorail construction, Sao Paulo Project example Result Significant improvements in quality, delivery reliability and cost control Traffic is one of the biggest problems in Sao Paulo. The Monorail will increase the citizens quality of life. Porsche Consulting is supporting us stabilizing our construction processes, improving delivery time and quality as well as cost control. Adriana Terumi Yoshida, Construction Manager Andrade Gutierrez (Sao Paulo, Brazil) Source: Porsche Consulting; Photo: Porsche Consulting 19

20 Success Story: Rail City Heidelberg Project example Result Reducing construction time of the largest passive-energy construction project in the world You can positively hear the fizz of value being added. Lean construction strengthens our competitiveness, thanks to which we can offer our customers affordable work at the highest quality. Matthias Ryzlewicz, Managing Director Weisenburger Bau (Heidelberg, Germany) Source: Porsche Consulting; Photo: Porsche Consulting 20

21 Lean Construction Summary Waste reduction By eliminating/reducing waste, the time available for valueadded activities is increased Construction site focus The focus of all activities in a construction project must be on smooth construction execution (Gemba*) Process thinking Synchronized processes and frontloading provide stability and transparency - transfer from the automotive industry to the construction industry is possible and has been done * Gemba = Japanese for place of work Source: Porsche Consulting 21

22 Our objective Stability and transparency ensure more projects on time and within budget! Source: Porsche Consulting; Photo: Istockphoto 22