LEAN IN DESIGNBUILD Lean in DesignBuild LEAN CONSTRUCTION
LEAN IN DESIGN-BUILD Lean in Design-Build © LEAN CONSTRUCTION INSTITUTE
LEAN IN DESIGN-BUILD Course Description Lean is increasingly being used in Design-Build project delivery and naturally supports and builds on the collaborative environment necessary for success in design-build. Learn how Lean naturally fits into design-build delivery and how you can integrate Lean into your design-build projects. The concepts of Big Room, Last Planner® System and Target Value Design are all integral to building successful teams that in turn deliver successful projects. Target value design is a key component in the growing application of Progressive Design Build to enhance the value proposition for owners. © LEAN CONSTRUCTION INSTITUTE 2
LEAN IN DESIGN-BUILD Learning Objectives 01. 02. 03. 04. At the end of this presentation, participants will understand fundamental concepts of Lean design and construction including identification of waste, definition of value and importance of reliable and predictable flow on project outcomes. At the end of this presentation, participants will understand how Lean is particularly well-suited to use in Design-Build which accounts for 40% of nonresidential projects. At the end of this presentation, participants will understand the fundamentals behind Design-Build done right as recommended by DBIA. At the end of this presentation, participants will understand how Lean reinforces Design-Build done right through an understanding of which Lean practices and tools align well with the objectives of Design-Build done right. © LEAN CONSTRUCTION INSTITUTE 3
LEAN IN DESIGN-BUILD Lean: Culture of respect and continuous improvement aimed at creating more value for the customer while identifying and eliminating waste. Lean Project Delivery System: An organized implementation of Lean Principles and Tools combined to allow a team to operate in unison to create flow. © LEAN CONSTRUCTION INSTITUTE 4
LEAN IN DESIGN-BUILD Traditional Delivery Outcomes… Risk is high. 70% of projects are delivered late. Teamwork is unreliable. Customers are not satisfied. 73% of projects are over budget. Profit margins are shrinking. Rework and waste is high. © LEAN CONSTRUCTION INSTITUTE 5
LEAN IN DESIGN-BUILD Correlation of Lean Intensity to Outcomes (% Likelihood on Best Projects) 2 X 3 X Completed Ahead of Schedule Low Lean Intensity © LEAN CONSTRUCTION INSTITUTE Completed Under Budget High Lean Intensity 6
LEAN IN DESIGN-BUILD Continuous Improvement (PDCA) Lean thinking demands a mindset of continuous improvement. Leaders must create an environment where experimentation is encouraged and small manageable failure is acceptable if the goal is to improve continuously. © LEAN CONSTRUCTION INSTITUTE 7
LEAN IN DESIGN-BUILD What is Design-Build? ONE CONTRACT for Design and Construction Owner SINGLE POINT OF RESPONSIBILITY © LEAN CONSTRUCTION INSTITUTE Integrated Design-Build Team 8
LEAN IN DESIGN-BUILD Design-Build Done Right Faster 33% Faster than Design-Bid-Build 23% Faster than CM at Risk Penn State University | Construction Industry Institute Study Sanvido & Konchar © LEAN CONSTRUCTION INSTITUTE 9
LEAN IN DESIGN-BUILD Design-Build Best Practices PROCUREMENT • Focus heavily on qualifications rather than price • Encourage early involvement of key specialty trade contractors • Minimize use of prescriptive requirements • Maximize use of performance-based requirements • Limit proposal deliverables • Use two-phase procurement process when asking for project-specific technical submittals • Make conscious decisions about importance of design excellence, innovation and sustainability © LEAN CONSTRUCTION INSTITUTE 10
LEAN IN DESIGN-BUILD Design-Build Best Practices CONTRACTING • Proactively identify and address significant project-specific risks • Reasonably allocate risks to party best capable of addressing and mitigating risk • Use understandable contract language • Encourage communications between parties • Have a fair process for adjusting contract price and time © LEAN CONSTRUCTION INSTITUTE 11
LEAN IN DESIGN-BUILD Design-Build Best Practices CONTRACTING • Evaluate use of contract incentives • Clearly identify performance guarantees • Specify owner’s role during project execution o Reporting and communication o Design submittals o Role, if any, in QA/QC © LEAN CONSTRUCTION INSTITUTE 12
LEAN IN DESIGN-BUILD Design-Build Best Practices CONTRACTING • Use written teaming agreements • Regularly and actively involve designer-of-record throughout project execution • Clearly identify role of design-builder’s team relative to design process • Clearly establish how communications take place © LEAN CONSTRUCTION INSTITUTE 13
LEAN IN DESIGN-BUILD Design-Build Best Practices EXECUTING DELIVERY • Relationships built upon trust, transparency and team integration • Individuals who are competent in their specific areas of expertise • Individuals who understand how design-build process works • Ability of entire team to work together collaboratively © LEAN CONSTRUCTION INSTITUTE 14
LEAN IN DESIGN-BUILD Design-Build Best Practices EXECUTING DELIVERY • Recognize the importance of collaboration and trusting relationships • Use staff educated and experienced in design-build best practices • Commit senior leadership that is supportive of design-build best practices © LEAN CONSTRUCTION INSTITUTE 15
LEAN IN DESIGN-BUILD Design-Build Best Practices EXECUTING DELIVERY • Co-locate owner and design-builder when justified by project characteristics • Have design and construction teams working in same place as often as possible • Ensure that staff understands administrative processes associated with project execution © LEAN CONSTRUCTION INSTITUTE 16
LEAN IN DESIGN-BUILD Design-Build Best Practices EXECUTING DELIVERY • Create an executive leadership group • Collaborate on how to engage owner and key members of design-build team • Develop processes to enable key stakeholders to participate • Ensure that owner is fully engaged, educated, and ready to make the timely decisions © LEAN CONSTRUCTION INSTITUTE 17
LEAN IN DESIGN-BUILD Design-Build Best Practices EXECUTING DELIVERY • Acknowledge significant level of effort to manage development and review of design • Dedicate sufficient resources to foster collaboration during design development • Manage and document design changes and ensure owner is notified (or better yet, participates) © LEAN CONSTRUCTION INSTITUTE 18
LEAN IN DESIGN-BUILD Big Room is: • Mindset of intense focus on advancing work. • Enables cross-functional team collaboration. • Refers to the collaborative behavior of a team and the work they are producing. • Implemented in design and construction phases. Big Room is a commitment to a project, the team, and to working together! © LEAN CONSTRUCTION INSTITUTE 19
LEAN IN DESIGN-BUILD Big Room Benefits • Improves collaboration through greater team interaction. • Delivers a ‘higher performing facility’ on time and on budget. • Allows team members to support each other and align themselves with the goals of the project. • Breaks down the ‘silo’ mentality within the project. © LEAN CONSTRUCTION INSTITUTE 20
LEAN IN DESIGN-BUILD Last Planner® System Benefits 1. Improves communication & reliability. 2. Fosters an enjoyable environment, trust, and collaboration. 3. Promotes early stakeholder engagement. 4. Improves visibility of the project plan (transparency). 5. Creates team buy in. 6. Rapid learning through metrics, revealing areas for improvement. 7. Improves planning in both design & construction phases. © LEAN CONSTRUCTION INSTITUTE 21
LEAN IN DESIGN-BUILD TVD Culture TVD is to be applied holistically to obtain maximum value. Regardless of the project delivery framework, the owner, designers, builders, and key trades must be fully engaged from the onset. © LEAN CONSTRUCTION INSTITUTE 22
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