Transforming Design & Construction : simplebooklet.com

CONTENTS Transforming Design and Construction A Framework for Change FOREWORD 7 TRANSFORMATIONAL CHANGE 1 Lean Construction Overview 15 2 The Value Proposition 19 3 Learning to See Waste 23 4 Lean Construction Defined 27 5 Visual Management Communication 33 6 Individual Assessment Development 37 7 Noticing Declaring Breakdowns 43 8 Team Forming Team Initiation 47 9 Cost Forecasting in Early Project Phases 53 10 Facilitation 57 11 Continuous Reflection 65 12 Leadership Lean IPD Projects 69 13 Coaching 73 14 Respect for People 77 15 Hierarchical Vs Distributed Leadership 83 16 Retrospectives 89 INTEGRATED PROJECT DELIVERY STRATEGY 17 Risk Opportunity Register 95 18 Experienced Lean Partners Big L 103 19 Early Stakeholder Involvement 107

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20 21 22 23 24 High Performing Teams 113 Team Partner Selection 117 Choosing By Advantages 127 Project Conditions of Satisfaction 133 The Shared Risk Reward Business Deal 139 LEAN PROJECT DELIVERY METHODS MANAGEMENT 25 The Last Planner System 147 26 Reliable Promising 151 27 Cluster Groups 155 28 Hand off Work Planning 159 29 Daily Huddle 167 30 Production Design System 173 31 Continuous Improvement 179 32 Onboarding Team Members 187 33 Go to the Work 191 34 Collaborative Budget Management 195 35 Plus Delta 201 36 Agendas 205 37 The Mindset of an Effective Big Room 209 38 Value Stream Mapping 213 39 Work Structuring 217 40 A3 Thinking 223 41 Continuous Estimating 227 CONTRIBUTORS 231 APPENDICES Glossary 243 Simulation Matrix 259 Alpha Index for Topics 262 About the Lean Construction Institute 265 Ordering Information for More Books 266

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FOREWORD For many years participants in the construction industry have been frustrated with the success of our projects The costs continue to outpace inflation The time required to complete continues to grow More technology complicates both the product and the process The construction profession has lost much of its respect as is evidenced by the decline in college enrollment and trade and craft training The innovators in our construction industry have been looking to the manufacturing industry in an effort to learn how they have been able to see significant productivity and efficiency gains over the last 50 years Specifically they have looked to Toyota s success with the Toyota Production System TPS and have tried to adapt the production principles and Lean tools in their design and production practices Early adopters of this new way of addressing construction projects have seen significant improvement in both individual projects and across their practices Unfortunately the recipe for applying these Lean production principals to construction has been generally unique and undocumented In an attempt to share experiences and lessons learned Communities of Practice CoPs have been set up in many large cities across the United States and globally At these CoPs local practitioners share with each other the tools and practices they are attempting and the successes they are having on a limited basis as time allows While this is excellent for those in attendance it is a very slow method for improvement across a large industry and is dependent on interpretation from CoP to CoP Over the past year the many diverse contributors to this book have come together in an attempt to define the most important aspects of the transformation that has taken FOREWORD 7

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place on the projects and experiences of their collective practices These contributors span the breadth of the industry including owner representatives designers builders specialty contractors educators and consultants In two weeklong meeting events and numerous hours in between they have collaborated to create this Framework for Learning We collectively believe that Lean thinking is the mindset necessary to improve our industry The Fundamentals of Lean are as follows Strive to understand value from the customer s perspective and take only actions that deliver that value This helps eliminate waste Waste is disrespectful to humanity it squanders resources to individuals it adds work to clients it adds cost time aggravation Become a learning organization through relentless reflection and continuous improvement as a team Respect for people through inspiration and empowerment driving engagement and improved results Develop principles that are right for the organization and diligently practiced to achieve high performance Lean Integrated Project Delivery Lean IPD is a method of developing and managing a project through relationships shared knowledge and common goals Lean IPD attempts to break down traditional silos of knowledge work and effort and reorganize it through a total value stream approach to the betterment of the project rather than the individual participants Using the Lean mindset and the Lean IPD methods has proven to drive significantly improved results However this mindset is a significant transformational change from the experience of most industry participants and thus requires participants to be prepared to begin and continue their learning journey To assist those who are preparing to begin their Lean IPD journey this Framework for Learning has been created to organize the learning This framework was developed considering the three domains of a design and construction effort developed by the Lean Construction Institute LCI and adding to the meaning of each leg of the triangle 8 Transforming Design and Construction A Framework for Change

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Y ST RA TE G om me INT EG RA TE DP RO J C ECT DE L HA LC NA al IO AT tion RM niza FO rga NS O rci IVE al RY A TR E NG LEAN PROJECT DELIVERY METHODS MANAGEMENT Operating System The above LCI triangle indicates that each of the three legs is necessary for a successful project endeavor Each project requires an organizational structure an operating system and a commercial structure We have expanded these concepts to include Lean Project Delivery Methods and Management Systems as the Operating System Integrated Project Delivery Strategy as the project Commercial Structure and Transformational Change to the way the Organization will think learn and behave Lean Project Delivery Methods Management This category focuses on the production system and the tactical tools and practices that have been shown to drive improved results when applied correctly These means and methods can be employed individually or together depending on project need These tools generally can be applied to any project regardless of contract terms or formal relationships They can be applied by one participant or all as a team They often can be applied to office functions shop activities or any specific effort interested in improvement A word of strong caution though Lean is not about tools but a mindset If these tools are applied without the changed mindset it is likely the tools will add to the work of the project rather than simplify and improve it FOREWORD 9

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Integrated Project Delivery Strategy This category focuses on choosing partners building teams and aligning goals amongst the team members often in commercial terms These aligned agreements can be applied as a project strategy for an individual effort or as a procurement strategy for long term relationships for those who build repetitively While these practices can be maximized through the use of an Integrated Form of Agreement IFOA they also can be utilized in a best value selection process with fixed price or other bonus and shared savings relationships Transformational Change This category focuses on how everyone must think and behave differently to affect significant change These topics are really about changing the culture of a project and creating an atmosphere for innovation and improvement The learning required for this transformation must be taken seriously if significant improvement is the goal These topics can be learned and applied without the use of an IFOA but would then require significant owner leadership commitment and involvement We believe the more proficient in each of these three categories the project team can become the better the results will be We also believe to maximize the benefits of these practices requires the use of an IFOA however we also understand not all organizations are poised to do so We firmly believe that effective use of these tools strategies and practices will improve any project with any commercial terms The chapters presented in this book are intended to encourage learning and experimentation They alone will not offer sufficient knowledge to implement all of these concepts They will however make you aware of what is possible and provide common language for the Lean construction community This should help direct readers further along their learning journey These chapters make excellent material for Study Action Team reading Pick a topic read the chapter then discuss how to apply it to your situation Make a plan do the plan check the outcome adjust the process and you will be on your way 10 Transforming Design and Construction A Framework for Change

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Note to Reader You are about to embark on a challenging yet rewarding journey Shifting to Lean delivery is referred to as an adventure because it is exactly that It entails learning step by step how to do things differently It truly is a shift to new behaviors and thinking to form new habits It entails change and change is never easy But it can be fun and the outcome can be rewarding in many ways The best advice is to relax into the new ways open up to new ideas and processes enter into it with an adventurous spirit and have fun It is important not to become overwhelmed by the changes One must learn one step at a time William R Bill Seed Executive Project Integration Walt Disney Imagineering FOREWORD 11

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1 CHAPTER LEAN CONSTRUCTION OVERVIEW Introduction Lean Integrated Project Delivery Lean IPD is a response to customer and supply chain dissatisfaction with the results in the building industry Construction labor efficiency productivity has decreased while all other non farming labor efficiency has doubled or more since the 1960s Currently 70 of projects are over budget and delivered late The industry still sees about 800 deaths and thousands of injuries per year The industry is broken Construction labor efficiency productivity has decreased while all other non farming labor efficiency has doubled or more since the 1960s Currently 70 of projects are over budget and delivered late CHAPTER 1 Lean Construction Overview 15

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This is not a construction only issue it spans the entire delivery system The silos created around architects engineers general contractors trade contractors and specialty providers have introduced significant waste into the delivery system An alarming lack of trust has created systems of checks double checks and over specification to cover legal ramifications either real or perceived 1 0 Why Lean IPD has shown that this phenomenon can be reversed as shown below Source McGraw Hill Construction 2013 BENEFITS REPORTED BY A HIGH PERCENTAGE OF LEAN PRACTITIONERS by Level of Achievement Source McGraw Hill Construction 2013 High Level of Achievement Medium Level of Achievement Improved Safety 39 38 77 Greater Customer Satisfaction 38 42 80 Higher Quality Construction 36 48 84 Reduced Project Schedule 34 40 74 Greater Productivity 33 44 77 Greater Profitability Reduced Costs 30 34 64 Better Risk Management 21 50 71 Lean IPD has the potential to reverse alarming trends in the construction industry that threaten safety competitiveness and profitability 16 Transforming Design and Construction A Framework for Change

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Lean construction is a relationship based system that is founded in commitments and accountability It significantly improves trust Teams are integrated through collaborative tools and search for ways to eliminate waste specifically at the hand off of work Teams seek to continuously improve through reflection Lean IPD processes are designed to remove variation and create continuous workflow to drive significant improvement in predictability all while strongly encouraging respect for all people involved 2 0 How High Performing Team selection through a value based Partner Selection assessment allows multiple subject matter experts to provide their knowledge in new ways through onboarding practices Cluster Team development and early incorporation of means and methods These practices ultimately lead to higher quality lower cost projects Partners come together in a Big Room environment and learn to function as one team by creating long term business partnerships Teams improve by Learning to See Waste through the use of Retrospectives like the common Plus Delta Enhanced Facilitation Agenda management Production Systems implementation and the Last Planner System are tools that drive productivity into meetings planning sessions and construction efforts Owner operators are offered a significantly improved Value decision making opportunity and project predictability through Target Value Design Teams learn to make better decisions with the use of Choosing by Advantages and present better solutions to complex problems through the A3 thinking process This framework can be structured through a common contract based around Conditions of Satisfaction that aligns goals and allows all parties to win together not at the expense of each other by creating a unique Business Deal CHAPTER 1 Lean Construction Overview 17

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2 CHAPTER THE VALUE PROPOSITION Introduction Lean Integrated Project Delivery Lean IPD is a predictable and robust management system that benefits project or building owners and operators Engaging builders with designers through a non traditional Partner Selection and Team Forming process enables the entire value stream to be considered This means that many of the involved participants can offer better opinions commit to those opinions and perform to those commitments The availability of this broad knowledge base allows the entire project team to consider life cycle operating cost building performance process outputs and employee engagement benefits to drive optimal solutions from a multitude of solution set options This broader group of experts brings multiple perspectives to add value to decision making With real time cost knowledge each solution set can be assessed against its impact to cost and schedule as well as against a pre defined set of Conditions of Satisfaction When builders and designers interact with operators and owners as partners better understanding and definitions of needs lead to better solutions CHAPTER 2 The Value Proposition 19

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1 0 How Lean IPD projects are organized around teams which eventually include all the key participants in the project customers and suppliers When a Lean IPD project works properly customers concerns new possibilities value and waste are brought to the fore in new ways and replace standard practices historical habits and bureaucratic behaviors Changes previously considered impossible occur in relationships with suppliers Previous challenges of managing suppliers disappear and are replaced with collaboration Task lists are transformed into commitments People have better conversations and relationships and coordinate with each other much more impeccably People recover their autonomy responsibility and dignity Finally unprecedented new economic value is uncovered and made available to the participants When teams begin to perform well deeper discussions evolve about building the right building for the prescribed need With subject matter experts representing many areas of the project outcome coupled with aligned business targets and a transparent sharing of knowledge a multitude of project systems can be explored and optimized When builders and designers interact with operators and owners as partners better understanding and definitions of needs lead to better solutions Trust is a foundational principle of Lean IPD An owner who relies on the construction industry for regular business growth can expect better outcomes by considering the long term outlook for partnerships rather than by selecting contractors on a project toproject basis By procuring design build and related specialty services with long term relationships in mind the owner can turn the focus from individual company needs to project improvement needs These partners should be encouraged to speak their minds freely disagree with the owner operator and challenge the wants and needs to gain full understanding They need to be true thought partners not yes men Done correctly this will lead to constructive conflict not tacit agreement This deep engagement can often help the owner operator improve operations and steer the team to the Right building By viewing and sharing this risk openly the team can collectively carry contingency to cover this potential cost 20 Transforming Design and Construction A Framework for Change

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2 0 Why When owner operators engage with experienced partners earlier in the process a deeper risk assessment and understanding arises As a result the team can manage that risk find a multitude of ways to mitigate the risk and price it accordingly By viewing and sharing this risk openly the team can collectively carry contingency to cover this potential cost This process focuses the team on finding solutions rather than arguing about who must pay for it which typically delays solutions increases the risk interrupts project flow and increases cost The team nearly always has the capacity to address most if not all risks as they arise Because Lean IPD projects have built in schedule predictability owner operators can better manage their internal staff and assign them to tasks accordingly For example since less time is spent resolving claims and disputes project participants are available at the planned completion when they are most needed and they are able to move to the next business need With strong team partnership the project closeout is more organized and reaches conclusion earlier than traditional programs As teams work together more frequently individual project vendor staff become extensions of owner operator staff Completed Lean IPD projects have shown significant safety improvements Safety is a crucial concern in the construction industry and Lean IPD s rigorous planning methods have helped tremendously Tools like 5S material management techniques and other site logistic management efforts make the work safer thus driving better results A word of caution The owner operator must be involved in this process to drive success Value is defined by the owner and the team needs this definition at every turn of the program The owner should be open to others opinions specifically those of partners who might not be in their primary industry While at some points it may seem owners are losing control of their programs they are actually improving control by empowering others to help make the numerous decisions necessary to deliver a successful project CHAPTER 2 The Value Proposition 21

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3 0 How Observations Ohno Circles 1st Run Studies Videos Value Stream Maps Spaghetti Diagrams Constant Measurement 4 0 What There are seven common wastes These come from the manufacturing world but can be applied to any process They specifically come from the Toyota Production System TPS The Japanese term is Muda There are several acronyms to remember what these wastes are but one of the more common one is TIMWOOD T ransportation I ventory M otion W aiting O ver Processing O ver Production D efects Transportation Unnecessary movement by people equipment or material from process to process This can include administrative work as well as physical activities Inventory Product raw materials work in process or finished goods quantities that go beyond supporting the immediate need Motion Unnecessary movement of people or movement that does not add value Waiting Time when work in process is waiting for the next step in production 24 Transforming Design and Construction A Framework for Change

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Look for and assess opportunities to increase value through waste reduction and elimination Over Processing More processing than is needed to produce what the customer requires Perhaps the hardest to detect and eliminate Over Production Making something before it is truly needed This is a particularly serious form of waste because it leads to other forms of waste Defects Production that is scrap or requires rework There are many more forms of waste beyond the seven listed Continue to look for and assess opportunities to increase value through waste reduction and elimination Some other common wastes that have been identified are listed next Underutilized Talent Many people consider this one the eighth waste It is essentially underutilizing the talents or resources that are available Over Burdening The Japanese word is Muri This is excessive demand on a system that causes the system to produce beyond its reasonable capacity Pushing a machine or person beyond natural limits Over burdening people results in safety and quality problems Over burdening equipment causes breakdowns and defects CHAPTER 3 Waste 25

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CHAPTER 4 LEAN CONSTRUCTION DEFINED Introduction Lean thinking has been applied with much success in many industries and serviceprovider organization Lean concepts can be applied to any recurring effort at work home or play The construction industry recognizes it needs much improvement to keep pace with the ever growing complexity of the built environment and to make progress toward the same efficiency gains other business sectors have achieved Many believe Lean Construction is the way Lean Construction extends from the objectives of a Lean production system maximize value and minimize waste to specific techniques and applies them in a new project delivery process CHAPTER 4 Lean Construction Defined 27

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1 0 Why Construction industry studies have shown 50 or more of the effort required to deliver a built environment is non value added effort or waste in the eyes of the customer CII 2004 The effectiveness of a labor hour has not improved in the last 50 years while other industries have seen significant advancements Teicholz 2004 Demographics and labor shifts have significantly reduced the construction industry s labor availability and the relative cost increases of the built environment are not satisfying the business needs of many of its customers 2 0 How Lean Construction is a respect and relationship oriented production managementbased approach to project delivery a new and transformational way to design and build capital facilities Lean production management caused a revolution in manufacturing design supply and assembly Applied to the design supply and construction of a capital facility Lean changes the way work is done throughout the project delivery process Optimize the Whole Removal of Waste Continuous Improvement RESPECT FOR PEOPLE Generation of Value 28 Focus on Process Flow Transforming Design and Construction A Framework for Change

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Lean Construction extends from the objectives of a Lean production system maximize value and minimize waste to specific techniques and applies them in a new project delivery process Therefore Lean theory principles and techniques taken together provide the foundation for a new form of project implementation Building upon its roots in production management Lean Construction produces significant improvements particularly on complex uncertain and quick projects 3 0 What Respect for People is the cornerstone of Lean thinking People transform ideas and materials into final useful value Respecting the contribution of each individual is necessary to tap this resource In addition 1 People are central to the success of Lean project delivery and 2 The production management based approach of Lean project delivery encourages all efforts to make transparent and then optimize all processes and flows within design and construction work Furthermore by placing people at the center of Lean Construction we are reminded to prioritize Respect for People and avoid generating the 8th waste which can be summarized as Unused Underutilized Employee Talent Creativity Intellect Skills Potential Bicheno and Holweg 2009 Lean thinking encourages a constant reflection to determine if every expenditure of resource is employed to generate value The customer should determine and make transparent that value definition via the project s Conditions of Satisfaction to help guide the project team s efforts Thus generating value should efficiently transform raw materials into final products or services and that process should be done right the first time Lean thinking encourages practitioners to look for and remove waste Waste is effort or resource utilization that does not create value This waste is not always obvious and requires effort to identify and then remove All waste cannot be removed but an effort to minimize all waste is encouraged Lean thinking suggests that standardizing process and leveling flow are the best ways to optimize a value stream Standardized practices can be repeated consistently and become a starting point for continuous improvement Leveling workflow helps minimize variation to allow consistent output and predictable results 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 This atmosphere can drive innovation that will benefit the entire value stream through value creation CHAPTER 4 Lean Construction Defined 29

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An overarching concept of Lean thinking is to optimize the whole Value stream optimization encourages projects to look beyond the local and individual efforts and study the overall outcome to determine where value is added or waste is included in each step considering the value proposition This concept is counterintuitive to those trained to specialize in one area and maximize that value Traditional construction industry contracts force a siloed optimization for each individual firm to be successful Lean thinking attempts to reverse that concept Project teams might also find it useful to customize the way they introduce initially define changes in the application of Lean Construction based upon the composition of their audience For example Owner Expects predictable reliable delivery that is on time on budget and at the level of quality in a safe working environment expressed in the project s Conditions of Satisfaction Requires actively engaged owner participation to continuously define the value proposition Requires owner representatives to commit to making decisions sharing the why with the partners and fostering a fair collaborative environment Expects the owner to be an equally participative accountable team member Design partner based upon the Lean principles outlined in Lean Thinking by Womack and Jones 2003 Defines value from the customer s perspective and in their language Organizes all value adding work in a value stream Makes the work flow in accordance with the needs of the next customer Pulls work from a provider whenever possible Pursues perfection that is What can we do to make today better than yesterday 30 Transforming Design and Construction A Framework for Change

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Build partner Respects the expertise of the build partners and attempts to maximize their knowledge during design and project planning Focuses on productivity and safety Creates more productive trade partners because all constraints have been removed so they can complete work as planned This minimizes their comebacks that is the need to demobilize and remobilize when work cannot be complete as planned which negatively impacts productivity Produces better safety results among trade partners because work can be completed as planned When trade workers perform comeback work they are potentially double and triple exposing themselves to unsafe work conditions People are at the center of Lean Construction They collaborate within and across teams using foundational Lean principles with the goal of optimizing overall value Quick Reference Learning to See Waste 23 Respect for People 77 Conditions of Satisfaction 133 CHAPTER 4 Lean Construction Defined 31

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1 0 Why Collaborative Communication is crucial to integration Collaboration is a relationship focused on a common vision based upon trust and transparency attempting to maximize customer value through interactive problem solving toward well defined common goals Collaborative Communication combined with Visual Management Displays a common understanding of project progress in an easily understood format Shows Respect for People by keeping everyone equally informed Eliminates the need for additional reporting Keeps the team aligned and on course and Builds a culture that helps assimilate the ebb and flow of new members Visual Management and Collaborative Communication enables the team to promote open dialog visualize progress quickly see and address problems that surface and keep team members informed about the progress of the project 2 0 How Teams using Visual Management should first determine what information is needed and what data would be helpful Additionally Meetings should be scheduled in a visual workspace or where the work is happening The venue should be flexible Collaboration rooms are valuable to create a team process of how to meet and share data 34 Transforming Design and Construction A Framework for Change

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The information delivery system should be continually redesigned and improved Stale information can be a distraction and should be removed Visual management tools should be designed to encourage people to take action on the hot topics and foster a peer pressure to complete their obligations within promised timeframes Technology should be incorporated to ensure individuals outside the office are tied into the process Visual Management information that drives the team includes but is not limited to Conditions of Satisfaction COS Schedule Look Ahead Budget Management Target Cost Tracking Cluster Groups Org Charts Do More Do Better Personal Comments with Positive Intent 3 0 What The purpose of Visual Management is to enable and foster Collaborative Communication among team members and encourage additional engagement Visual Management and Collaborative Communication enables the team to promote open dialog visualize progress quickly see and address problems that surface and keep team members informed about the progress of the project More specifically it enables the team to visualize the system become aware of any constraints or roadblocks that might result and begin a dialog on how to solve those problems In this way the challenges are directed to the system and how to solve versus focusing on the person as the issue While there are many methods for Collaborative Communications several common tools to foster the collaboration include consensus CHAPTER 5 Visual Management Collaborative Communication 35

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1 0 Why Organizations often use assessments for individual development team building and bettering team dynamics Assessments optimize team performance by helping each member gain more awareness of his or her skills and preferences as well as those of other team members For example an assessment might reveal that one team member is strong when it comes to conflict resolution Likewise another team member might have a high tolerance for change Knowing these attributes allows the project team to leverage these strengths to the benefit of the individual and the overall project The use of Individual Assessment and Development allows leaders to more effectively and efficiently use unique skills to their fullest extent and assemble the right team for the right job a crucial component for successful project completion When the right team is in place the shared learning curve for project members is shorter an important advantage when staffing projects of shorter duration Teams that employ this approach also report a higher level of personal and professional satisfaction with projects Assessments also can reveal what motivates each team member Project leaders learn who is more interested in learning and developing as an individual In this respect assessments can serve as a longer term filtering and selecting mechanism Team members benefit from the sharing of other assessments as well They become part of a more effective team flex their innate personality and have the opportunity to exercise leadership in their area of strength Armed with greater insight into team member strengths managers can be more effective mentors and coaches Assessments might also indicate a particular affinity or interest the knowledge of which can allow team members to more effectively collaborate Additionally it could highlight an area that a team might naturally overlook thereby providing visibility to alternative perspectives 2 0 How An Individual Assessment and Development program can be adapted to fit the unique needs and culture of the organization There are a variety of tools and resources available particularly in terms of assessments of social and leadership skills Some require the help of an expert such as the Myers Briggs assessment Others such as a 360 Review are easier to administer independently This should also be considered when it comes to the onboarding process 38 Transforming Design and Construction A Framework for Change

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Debriefing and application are essential and best facilitated early by an expert and then continuously referenced as a team growth opportunity To be most effective assessment results should be shared among all team members and made visible The team should spend time learning how they can best use each other s strengths and how to engage each other most effectively The next phase of the process is skills development which is necessary for the team to benefit from the assessment Several development tools and techniques are available Here are some of the more popular types Development plans Peer network for coaching and mentoring Discussion formal and informal Study Action Teams Simulations Shared experiences Potential Pitfall If there is a desire to use assessments as an aspect of team member selection it should be done cautiously and as one of many data points that is considered 3 0 Who The executive leadership of an organization or project team typically drives Individual Assessment and Development processes It is important that leaders articulate the value of technical skills social awareness and personal development Team members who have found value in the process can serve as advocates to encourage others to participate share their experiences and demonstrate the value of the program in terms of professional growth Often the process is integrated with professional development plans and goals Assessments can be instituted across an entire organization at the project level or in the context of a specific team For example a team could conduct assessments of all 40 Transforming Design and Construction A Framework for Change

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A breakdown is an event that violates or will violate the principles of the project or organization or erodes team trust All team members and employees must be given the authority to declare a breakdown the moment it is identified 2 0 Why Projects and processes have challenges every day When breakdowns are brought to light sooner rather than later the team has more time to be proactive rather than reactive and having to clean up a mess Properly addressing a breakdown can often lead to great breakthroughs and innovation 3 0 When A breakdown should be declared by anyone anytime they Foresee an event that will violate the principles of a project or organization or will erode trust Experience an event that has violated the principles of a project or organization or erodes trust Are confused or Get results different from what was expected Reasons for declaring a breakdown do not and should not correspond to the apparent size of the potential violation Breakdowns may be declared for both minor and major reasons If one team member declares a breakdown it is incumbent upon the entire team to respond appropriately and create shared alignment 44 Transforming Design and Construction A Framework for Change

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4 0 How All employees and project participants must be granted the authority to declare a breakdown This should be part of all Onboarding plans Breakdowns should be declared to whomever is involved or affected as soon as immediately practical even if the declarer is uncertain it is indeed a breakdown This should not occur by email but in a face to face setting Once the breakdown has been declared the team should prepare for a session to create a shared understanding identify the root cause and prevent the situation from recurring An action plan with ownership should be developed The method may be a retrospective a plus delta a fishbone diagram an A3 etc The method will depend on the breakdown at hand The session should focus on the process or system Avoid blame pointing fingers When discussing breakdowns the team must follow the rules of engagement for a safe environment Nothing should be taken personally and all should understand that everyone did the best they could with the information they had at the time The team should update actions at the daily check ins Quick Reference High Performing Teams 113 Partner Selection 117 Reliable Promising 151 CHAPTER 7 Noticing and Declaring Breakdowns 45

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CHAPTER 8 TEAM FORMING KICK OFF AND TEAM INITIATION 1 0 Why While Lean IPD projects always begin with a collaborative team selection process Partner Selection the member firms and individuals involved often are unfamiliar with each other Lean IPD projects benefit from a focused effort on team building dynamics role definition and vision casting activities that are repeated whenever a new team is formed new participants enter teams and whenever there are significant changes in team operations Lean IPD projects are managed by and employ various kinds of project teams some permanent and some temporary as a regular part of their operations CHAPTER 8 Team Forming Kick Off and Team Initiation 47

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Lean IPD projects are managed by and employ various kinds of project teams some permanent and some temporary as a regular part of their operations Each Lean IPD project team is set up for a specific purpose may have a specific assignment and will be asked to deliver specific results Teams are assembled from project participants who may have not worked together previously Sometimes people not previously involved in a Lean IPD process may be included in these teams Member firms typically come with historical management infrastructure and tools for scheduling estimating and finance accounting Left unexamined these separate systems may have redundancies gaps or even be at odds with the project s integrated delivery objectives Tools reporting mechanisms and resource deployment must be examined taken apart firm by firm and put back together in service of the project objectives The Lean IPD process the way people work in the projects the behaviors that are expected and the cultural styles that characterize the projects are new to most building industry participants These processes represent a significant paradigm shift from the past experience of most For example all team members are asked to provide input when they previously might not have had the authority to speak Team members are asked to listen to ideas processes means and methods All participants are challenged to drive results that would previously have been considered extremely difficult or impossible Project team formation is important in understanding the boundaries of the project and is more than a traditional project Kick Off With Lean IPD projects team formation does not happen in a single event or meeting it is developed and evolves over time There are also multiple purposes to this team initiation determining design parameters establishing team behaviors and structure and developing Conditions of Satisfaction CoS metrics that monitor and measure the team s success 2 0 When The team Kick Off is held before any project deliverables are completed and should involve all current project team members As team members are added they need to be onboarded Onboarding allows new team members to understand and respond to current team structure and CoS It also aligns new team members with the project culture and current team members 48 Transforming Design and Construction A Framework for Change

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3 0 How The relationships operating system and commercial terms of a Lean IPD project differ significantly different from traditional project delivery It is critical to inform participants of the new behaviors tools and transformational change required to be successful in this effort While no individual concept is complicated to grasp change is difficult particularly when it affects behaviors relationships and previously successful individuals Kick Off meetings will set the stage for new learning Successful teams have learned that the sooner all new team members learn about new behaviors the better the outcomes It is quite easy for the original members to forget that they have adopted new behaviors the original members may expect new team members to automatically have this new knowledge It is therefore crucial for teams to continue this learning for all new members as they are on boarded Initial Kick Off discussion topics should include CoS design vision team structure and team culture It is helpful for the core project leadership to write draft or straw man concepts ahead of the Kick Off which the broader team can edit and improve It is useful for teams to break out into smaller work groups to advance these concepts then report back to the broader team about developing objectives action plans identifying roadblocks or needs etc This transfers ownership to the broader team advances the initiative and encourages collaboration and trust building in a learn by doing atmosphere Teams should focus on their team development and broader concepts of success before diving into project details The following key points may not be addressed fully in the initial day s that a project team forms but a discussion and plan for developing them should be part of the teamforming meeting Conditions of Satisfaction Develop conditions that will leave all participants satisfied with the outcome of the project These conditions usually include cost schedule community environment business objectives relationship and profit based goals CHAPTER 8 Team Forming Kick Off and Team Initiation 49

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Design Vision Define design parameters in terms of quality and aesthetic direction Identify key drivers to the design what are elements customer can cannot live without Identify what value is to the ultimate end customer Determine who makes aesthetic decisions and when they will be made Team Structure Define roles and responsibilities of team members Define any hierarchy within the team Define decision making structure Develop an on boarding process for future integration of team members Develop an effective Big Room Develop a Target Value Design Plan A3 log Innovation TVD ideas Identify risks opportunities Identify collaboration tools methods to be used Develop a BIM plan through early discussion but at the right time with the right team members Team Culture Key Principles Transparency Trust Aligning Minds Don t Design Alone 50 Transforming Design and Construction A Framework for Change

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Integrated projects challenge the team to define the best use of this fixed resource pool to resolve outstanding questions rather than assign fixed contract values to individual providers The reason Optimizing value As work progresses particularly in its early stages individuals typically proceed independently toward their own interpretation of the project goals This can lead to re work and the unnecessary expenditure of funds resulting in Waste The preferred outcome is to increase confidence and clarity toward the Conditions of Satisfaction with the least amount of investment This approach implies a high level of financial transparency and integration Historically those involved in a project share little meaningful financial information The individual accounts might be reconciled and balanced but the actual financial outlook of each is usually unknown to the team as a whole Shared financial transparency of actual and projected project expenditures during the scope and value proposition phase becomes increasingly important There are tremendous opportunities within the industry for improving the ability to forecast the cost of a project particularly during its early stages 1 0 Why One of the most important factors when deciding to embark on a building project is the completed cost because the financial success of a project is likely determined by the project team s ability to predict cost accurately and deliver at or below that cost Ideally a team should have a high level of confidence in cost at various decision points in order to make the best informed decisions This effort requires various levels of input from multiple subject matter experts to inform the development criteria which in turn informs the size shape quality and cost of the program Rather than fix the cost for a preconceived deliverable it is more prudent to integrate a team of experts to identify areas of uncertainty continue to develop those to minimize cost risk Questions must be asked about operations such as whether a company could manage with less staff or deliver more value while doing less Since funds typically are limited in the early development phases the focus should be placed upon understanding the project s overall direction in order to decide where funds should be spent In the early stages it is important to understand the total funds expended and the percentage of completion so projections can be readjusted Subsequently the Burn Rate must be managed from the beginning using monthly projections and actual data Participants must immediately recognize waste be alert to the value of what they are receiving and take immediate action To do this the team must be aware of 54 Transforming Design and Construction A Framework for Change

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each participant s cost forecast to allow the shifting of work to the appropriate party Additionally participants should provide adequate insight into how much effort is required for each option so that value is optimized Also necessary when forecasting cost in the early stages are Financial transparency An understanding of how others forecast and account for those costs Immediate awareness of the actual cost to develop and An understanding of whether value is being delivered proportionately 2 0 How Teams should establish a method for tracking expenditures of all participants Actual labor rate projections for each team member and or individual effort should be predicted in advance and measured to track performance Frequent meetings with monthly invoice reconciliation must be scheduled with all financial information available in one area for everyone to examine Additionally Designate one point of invoice collation each month Display financial and other information in a room for all collaborators to view and match with occasional delivery milestones Show value created through Plan Do Check Adjust PDCA Emphasize whether the project is ahead of schedule or behind No news is not necessarily good news Schedule monthly budget cluster discussions The public presentation of updates helps drive accountability and monitoring of the plan 3 0 What While most companies involved in a project have independent tracking systems that produce internal data such information should be shared A core group of companies should be formed early to share information and monitor the rate cash is being consumed This should take the shape of one consolidated budget vs actual document for all to inform understand react to and manage CHAPTER 9 Cost Forecasting for Early Project Phases 55

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10 CHAPTER FACILITATION 1 0 Why Establishing a strong team culture is key for Lean IPD project success Having a good facilitator on board will help establish and maintain that strong culture Lean IPD projects outperform traditional project delivery projects because they are well planned and involve key stakeholders early in the project thus increasing participant engagement This engagement can lead to more participants in more sessions than on traditional project delivery projects Effective facilitation of teams is critical to this success Facilitate is defined as to make easy or to help something run more smoothly and effectively An effective facilitator brings out the best in individual team members and the group as a whole by encouraging deep thinking active participation collective learning and buy in from everyone involved By fostering an environment where ideas solutions and successful outcomes flow a good facilitator keeps the team on task so that they produce exceptional results An effective facilitator brings out the best in individual team members and the group as a whole by encouraging deep thinking active participation collective learning and buy in from everyone involved CHAPTER 10 Facilitation 57

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1 0 How Facilitator Competencies An effective facilitator is keenly observant insightful and tactful and has exceptional interpersonal skills He or she must maintain a productive and safe environment knows when to lead when to intervene for course correction and when to be neutral and take a back seat A proficient facilitator designs plans guides and controls the meeting by focusing on the group process and outcomes rather than focusing on specific content and opinions involved A facilitator is not an active group contributor however if a facilitator feels it is necessary to contribute to a conversation it is important that he or she announce they are temporarily stepping out of facilitator role make their contribution and announce when returning to the facilitator s role Facilitators should Have strong communication skills Make distributed eye contact with everyone and use participant names Be familiar with the subject manner This is not necessary if he or she is able to rely on team members for content expertise Respect all participants and enable a respectful environment Ask open ended impactful questions Listen thoughtfully and paraphrase comments Encourage full participation from all attendees Encourage questions and conversation Demonstrate an energetic and positive presence Be able to connect with multiple learning styles varied personalities and differing subject matter expertise of the participants Serve the group s objective rather than his or her own personal objective facilitate not participate Stay neutral by focusing on the process and not the content Have the authority to confront and stop unproductive conversations and behaviors Manage the room by keeping participants focused on task and on time 58 Transforming Design and Construction A Framework for Change

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Create a supportive learning climate Facilitate agreement and manage conflicting perspectives Use his or her voice and body language effectively by Varying vocal pitch to highlight key ideas Pausing frequently to allow contributions from others Projecting with confidence Using the room to adjust distance from participants To facilitate an event well it is crucial to understand the group s desired outcome and the background and context of the meeting or event Event Structure To facilitate an event well it is crucial to understand the group s desired outcome and the background and context of the meeting or event Facilitators should think about the process and agenda for the meeting and invest in advanced preparation to take the event through to a successful conclusion Great facilitation is a group process that flows from an agenda to a conclusion and creates an environment where the group s ideas solutions and decisions flow effectively through the event Preparation Things to consider when designing the agenda and event process In what order should the topics be considered How will participants get to know each other What will be the ice breaker How will they reach agreement on the meeting objectives How much time will be allocated to each item Will there be smaller break out groups When will recap and summarize occur CHAPTER 10 Facilitation 59

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How will the meeting plus deltas be captured How will the event be closed How will the next steps be determined Other things to consider when planning a meeting or event What do participants need to know before the meeting or event How will this be provided and when What room set up will best encourage participation Are separate rooms needed for break out groups What supplies and materials are needed Pens charts post it notes projectors etc Will refreshments be provided Will participants be given awards or other types of recognition Typical Event Format If deemed necessary begin the session with an ice breaker event Review Event Purpose and Expectations for the meeting Clearly state the purpose of the meeting Clearly state the expectations of the meeting Review and Align on Meeting Agenda If possible publish in advance Review at the start of the meeting adjust if group provides strong input Consider asking for hot topics from the participants and how they may inform the agenda Allocate time for external e mail or communication and keep that promise this allows for strict enforcement of the no multi tasking policy Develop meeting Code of Conduct Ground Rules some examples are listed below Stay on Time this includes start time end time break times 60 Transforming Design and Construction A Framework for Change

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Safe Zone everyone is encouraged to speak their mind without concern for embarrassment or ridicule by others Behavior respect for all participants and open discussion among attendees No Stripes everyone has equal status and say in all matters no one person has more authority than others Speak Up everyone agrees to stay engaged in conversation and share ideas Listen to Others focus on what others have to say and their point of view No Side Bar Conversations only have one meeting so that opinions can be shared and heard by all unless designed for break out sessions Turn Off Mute Cell Phones help keep the meeting and participants on track by eliminating phone disruptions No Multi tasking everyone stays focused on the meeting and shows respect to participants this includes restricting use of laptops and PDA s Define Roles for Meeting Activities Facilitator leader facilitator of the meeting is responsible for the following or assigning volunteers from attendees stating their role as neutral vs contributor and as responsible for keeping the session and attendees in balance Scribe person responsible for capturing the conversation and ideas generated during the event and for consolidating for distribution the group s final decisions and actions Timekeeper Gatekeeper person responsible for starting and ending on time as well as keeping things on track Parking Lot person responsible for capturing important items that arise in the meeting and are not on the agenda but should be captured for review outside the meeting Guide and control the event to ensure the meeting keeps progressing towards a successful outcome CHAPTER 10 Facilitation 61

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Keep up the team s momentum and energy If energy levels decline consider taking a short break or stretch Listen engage and include all team members Stay alert listen actively and remain engaged this sets a good example and focus on engaging others who may be less involved in the conversation Monitor checkpoints and summarize Control the agenda share what has been achieved what s next and summarize often Intervene only if required i e unresolved conflict anger personal attacks Keep the event flowing and positive Watch for and close side conversations Know when to end a conversation if it isn t reaching a timely natural conclusion Be on the lookout for people who are not fully participating Pay attention to group and individual behavior both verbal and non verbal Summarize Record and Assign Action Review captured outputs of the event and ensure they are understood agreed upon and are actioned Develop next steps for owners and due dates on all action items captured Perform Plus Delta of meeting After Event Ask a trusted colleague who participated in the event to provide open honest feedback on facilitation skills for continuous improvement 62 Transforming Design and Construction A Framework for Change

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Common Techniques Several simple yet effective facilitation techniques are available and encouraged to advance the flow of the conversation Some examples but not limited are noted below Ice breaker event at the beginning of the meeting Using round robin to get everyone s participation Asking appropriate focusing questions Directing the group to take one to two minutes to individually write down ideas or answers and then share them with the group Asking follow up questions that clarify probe and redirect Drawing out clarifications with phrases like can you say more about that Rephrasing a participant s point and asking if that s what they meant Identifying and verbally summarizing agreements Declaring a lightning round to generate ideas and re energize the group References Humble Inquiry Edgar H Schein https www google com q Humble Inquiry Just Listen Mark Goulston https www google com q Just Listen A More Beautiful Question Warren Berger https www google com q A More Beautiful Question FacilitatorU com http facilitatoru com CHAPTER 10 Facilitation 63

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11 CHAPTER CONTINUOUS REFLECTION Introduction Many in the building industry are familiar with the expression Just Get it Done JGID It comes from a good place reflecting a desire among workers partners and managers to do whatever it takes to complete a job or demonstrate progress and energy Yet it often results in inferior outcomes as it emphasizes quick action more than deliberative forethought and individual performance over group achievement There s a better way and it s based on an attitude of Continuous Reflection a leadership mentality that ensures the entire project system is reflected upon as a unit rather than as individual pieces unrelated to one another Projects and practitioners who adopt a mentality of Continuous Reflection have the potential to achieve a greater level of improvement and innovation on their projects and in their work CHAPTER 11 Continuous Reflection 65

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1 0 What Continuous Reflection encourages ongoing improvement in the work process and product This is largely achieved through regular and ongoing dialog and seeking to foster a genuine respect for the skills and creativity of each partner It begins with a change in the attitude of management in their perception about results from one focused on action to one focused on value that is delivered It encourages partners to exercise experience and thought in how they approach the work so the skills and creativity of teams can be fully utilized 2 0 Why Projects and practitioners who adopt a mentality of Continuous Reflection have the potential to achieve a greater level of improvement and innovation on their projects and in their work When Continuous Reflection is the mindset on a project the entire design and construction process is optimized to yield better results that are visible in all aspects of a job Continuous Reflection is based on the belief that there is value in taking time to reflect on recent performance so teams can avoid repeating the same mistakes and improve on or take advantage of circumstances that went well Practitioners seek to examine recent performance to identify opportunities to improve the process Such information comes from asking questions that focus on exploring the problem and examining different solutions rather than pointing a finger or assigning blame It represents a shift from this went wrong to how can we improve this These questions are asked in a spirit of respect for the expertise and skills of everyone contributing to the project It promotes the dialog that allows opportunity for improvement and innovation This in turn shows respect for people their skills and creativity which drives continuous improvement This means including everyone in the discussions that examine the process and seek suggestions for improvement 3 0 How There are several steps leaders can take to foster a culture of Continuous Reflection First allow the team members to be empowered to invest in their work by trusting and respecting their skills and giving them space to exercise their creativity then ask them to be accountable for their improvements through the results they achieve When beginning this practice make sure to indicate to people your persistent questions are meant to offer improvement opportunity rather than assess blame 66 Transforming Design and Construction A Framework for Change

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Plus Delta Lists are one of several tools that can be used during Continuous Reflection Pay attention to the use of language For example refer to trade partners rather than subcontractors Along the same lines ask questions rather than dictate answers What help do you need What is in your way Help me understand why you say that What else is there to learn How can we do it better Employ a non punitive management style Create a safe environment where mistakes can be opportunities for learning and improvement of the system For example if a worker digs in the wrong area rather than simply having him dig in the right area try to understand what within the process allowed that to happen Be equally focused on the process as on outcomes Listening is another key skill Be an active listener who is humble and has a desire to learn from and understand others CHAPTER 11 Continuous Reflection 67

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Ohno Circles can be an effective tool for doing the kind of thoughtful observation that supports Continual Reflection Commit to protracted observations rather than quick walk throughs This will help teams develop a more meaningful understanding of the processes as well as gaining a deeper appreciation of the work of others which will lead to stronger and more developed improvements Other tools that can be useful include the following Plus Delta Lists Regular retrospectives Lessons Learned captured in A3s OZ Principle Daily Huddle Milestone Retrospectives References Humble Inquiry The Gentle Art of Asking Instead of Telling Edgar H Schien The OZ Principle Getting Results Through Individual and Organizational Accountability Roger Connors Tom Smith and Craig Hickman Quick Reference Learning to See Waste 23 Respect for People 77 Continuous Improvement 179 68 Transforming Design and Construction A Framework for Change

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12 CHAPTER LEADERSHIP AND LEAN IPD PROJECTS 1 0 Why Lean IPD is a significant departure from traditional project delivery models With Lean IPD participants collaborate to create aligned project goals rather than create individual goals based on transactional agreements Successfully implementing Lean IPD requires strong leadership from the project team Leadership refers to the capacity to produce movement and changes in the behaviors concerns and cultural styles found in the community of participants in the project On a Lean IPD project Project leaders build the ambition that every participant in the project develop leadership skills to the extent they can Leadership is essential for building the kind of new and unusual cultural environment in which Lean IPD projects succeed If a Lean IPD project does not have strong overall leadership the entire project is at risk of reverting to traditional project delivery methods Alternatively there may be confusion between old and new delivery methodologies CHAPTER 12 Leadership and Lean IPD Projects 69

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Leadership is not management Management s purpose to control and maintain stability is diametrically opposed to leadership s purpose of effecting change A manager typically keeps matters stable and in control a leader typically unsettles destabilizes and provokes team members to consider new opportunities Leadership is not management Management s purpose to control and maintain stability is diametrically opposed to leadership s purpose of effecting change 2 0 What and 3 0 How Lean IPD projects function best when many team members are capable of leading Traditional styles of top down leadership cannot sufficiently handle the challenges of managing Lean IPD projects Team members are typically brought into a project for their technical and professional expertise More often than not though they lack the leadership skills for managing the complexity and shared responsibilities required in a Lean IPD project The job of leadership is to bring a new future and circumstances in effect a whole new world in which we are building new ways of working with each other Without strong capable and widespread leadership the kinds of long held habits that need to be changed cannot be changed In a Lean IPD environment the goal is for each team member to lead at some point during a project s duration With care and attention each team member can learn to be a strong leader It is therefore incumbent on project leaders to build leadership ambition in all team members Eventually every team member will need to respond to and take responsibility for project events This might include leading a sub team declaring a breakdown or acting as a technical expert in some aspect of the project Some people do not think it is possible to learn to lead However experience with Lean IPD projects reveal that at the very least many of the most potent leadership skills can in fact be learned by serious students over periods of time Working in Lean IPD projects allows team members to learn leadership skills through observation and practice With appropriate Partner Selection Team Forming and Onboarding the team can use these skills to create a High Performing Team 70 Transforming Design and Construction A Framework for Change

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The fundamental activities of the leader are rhetorical and conversational Leaders make seek and clarify assessments make requests and invite offers and solicit reliable commitments from team members By forming Cluster Groups leaders empower their team members to take responsibility for all aspects of the project in which they are involved To do it well leaders may need to gain support from owners clients and more senior leaders in the project Leaders may also opt to get help from those senior to them The team can also assist by using Conditions of Satisfaction Effective leaders know that they must resolve tension from competing concerns On the one hand they must invite encourage and push reluctant team members in directions they might rather avoid On the other hand effective leaders will continue to listen to all of their team members and learn from their opinions and objections A strong leader will encourage concise A3 thinking and the use of analytical thinking tools such as Choosing By Advantages In Lean IPD projects leaders must produce learning environments in which it is O K to fail In the best cases teams learn to move quickly and not fear failure because they understand that failing fast is often the best way to accelerate learning The fundamental activities of the leader are rhetorical and conversational Leaders make seek and clarify assessments make requests and invite offers and solicit CHAPTER 12 Leadership and Lean IPD Projects 71

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reliable commitments from team members They facilitate conversations and identify and adjust to emerging team concerns The fundamental skill of the leader is listening to the concerns of the community and to the possibilities that can be brought to the circumstances in which the community finds itself Leaders also alter the way that their communities listen so that new kinds of actions and opportunities can emerge Power the capacity to move people in directions that they might not otherwise be willing to move is a fundamental leadership trait Good leaders gather authority and power while they work Effective leaders are keenly observant and attuned to team members moods and can redirect a team s emotional energy Whether a team member is on the brink of resignation or the entire team is energized focused and enthusiastic a good leader intervenes accordingly A strong leader channels positive team energy to create solid Hand off Work Planning Effective leaders whether they are quiet and reserved or talkative and gregarious know how to select team members and get the best from them They distinguish strengths and weaknesses of team members and know how to motivate them By respecting their teams great leaders earn their team s loyalty trust and respect Quick Reference High Performing Teams 113 Partner Selection 117 Cluster Groups 155 72 Transforming Design and Construction A Framework for Change

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1 0 Why Constantly communicating the Lean vision through formal and informal conversations by a coach inspires and motivates individuals Through coaching members can learn better and best practices and ultimately become coaches themselves If a member receives great coaching that individual is more likely to tutor others when entrusted with formal leadership roles further spreading the Lean transformation Team members need someone who can guide them in implementing transformational thinking strategies and procedures and a coach can fill that need A good coach builds upon individual development as well as responds and adjusts to changing conditions 2 0 How A coach often works to a defined objective training an individual or team toward a better overall understanding of Lean concepts and outcomes while driving teams or individuals toward better performance Ideally a coach should be an individual not associated with specific project requirements or an outside consultant Since coaching involves teaching fundamentals and skills there are various methods at a coach s disposal At times coaches are teachers while other times they are guides who provide individual support Team members should universally agree to have a coach likewise a coach should focus on team members who are receptive to their assistance In order to help an individual realize goals a coach might suggest self learning such as videos classes and peer support or specific tools and strategies to help improve current and future performance Coaching provides an individual with opportunities to develop new skills as well as advance in their organization and or personal life 3 0 What While teaching new methods in a classroom is passive coaching is learning in action By fully utilizing individual skillsets through coaching collaborative projects can drive significant improvements 74 Transforming Design and Construction A Framework for Change

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14 CHAPTER RESPECT FOR PEOPLE Introduction Traditional project delivery has generally viewed individual participants as labor or knowledge producers as defined by their narrow specialties The traditional tendency is to pigeonhole individuals into their capabilities such as licenses firms trades and expertise Collaborative project teams have learned that by respecting the individual first then the role participants will become more engaged in an enterprise and contribute in more meaningful ways In fact through respect inclusion and appropriate challenges individuals grow and engage further produce more and are more fulfilled Collaborative project teams have learned that by respecting the individual first then the role participants will become more engaged in an enterprise and contribute in more meaningful ways CHAPTER 14 Respect for People 77

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FAKE LEAN Continuous Improvement REAL LEAN Continuous Improvement Respect for People Source Bob Emilani Respect for People enables Continuous Improvement Continuous Improvement does not enable Respect for People Bob Emiliani 1 0 Why Respect for People together with Continuous Improvement form the two pillars of Lean management However it is the many Lean tools aimed at making waste visible and improving processes upon which organizations tend to myopically focus as they attempt to adopt the Lean philosophy Experience demonstrates that Lean transformations fail to deliver sustainable results without equal attention to both pillars Respect for People means Recognizing and showing appreciation for the value of each individual and what they bring to the team Creating and maintaining an environment in which it is safe to speak up with concerns and problems with the expectation that others will listen Adopting a problems first attitude and Being open to the ideas of others and challenging one another to become better Respect is not the same as politeness or conflict avoidance To the contrary Respect for People requires that we embrace constructive conflict and openly discuss issues that might normally be treated as undiscussable Because Respect for People is not always comfortable politeness can actually be its near enemy A Plus Delta is a simple example of constructive conflict in action In such a situation an issue that might be perceived as a negative is instead framed as a delta or a possible change to make the process better These issues are openly discussed as a team and the group decides which actions should be taken 78 Transforming Design and Construction A Framework for Change

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2 0 How Place a primary focus on enabling those who perform the value adding work to be successful every day Ask them how this can be achieved then help them to implement their ideas Solicit broad engagement of each individual and invest deeply in developing that person s capabilities Go to the Work to understand the challenges determine if help is needed and offer assistance Listen Practice effective empathic listening Develop emotional intelligence skills Seek first to understand Stephen Covey Practice humble inquiry Employ strategies for creating a safe environment Adopt No blame and No stripes ground rules Shift from a stance of let s get to work to one of building relationships first Adopt the practice of asking questions about what we don t know and move away from telling and directing Leaders should adopt the practice of being vulnerable and acknowledge their complete dependence upon the team for project success HOW CULTURE CHANGES AND DOESN T Shook s Version Old Model Change thinking to change behavior Schein s Version What We Do New Model Change behavior to change thinking Artifacts Values Attributes Values Attributes Culture Basic Assumptions CHAPTER 14 Respect for People 79

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Additionally you should purposefully bring learning and improvement practices into the way the project is organized and delivered Develop a team culture embracing John Shook s suggestion that It s easier to act your way to a new way of thinking than to think your way to a new way of acting 3 0 What Lean management is unsustainable without an equal emphasis on both Respect for People and Continuous Improvement Without equal emphasis on the two pillars of Lean the process quickly degrades into Fake Lean Proper Lean management takes the view that People are intrinsically motivated Being effective together calls for connecting with the interests and concerns of everyone People are fundamentally good and have positive intent It is worthwhile to invest in building the capabilities of people for the sake of the project and future projects The objective is not merely to produce improvements but to develop each person s capability to improve Everyone should come to work with the expectation of being successful every day People should not be overburdened and should have the resources skills and environment to do their work Leadership is responsible for the system within which people work When things go wrong presume the system is faulty rather than blame individuals Respect helps to build trust which in turn enables innovation and risk taking for the better of the project Shigeo Shingo one of the early creators of the Toyota Production System said There are four purposes of improvement easier better faster and cheaper These four goals appear in the order of priority In other words we should focus on making it easier for people to do a better job When we do that well becoming faster and cheaper will naturally follow 80 Transforming Design and Construction A Framework for Change

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References Defining Respect for People Bob Emiliani http www bobemiliani com defining respect for people W Edwards Deming s 14 Points for Management https www deming org theman theories fourteenpoints How to Change a Culture Lessons From NUMMI John Shook http sloanreview mit edu article how to change a culture lessons from nummi Respect for People Gemba Academy Podcast http blog gembaacademy com 2015 02 12 ga 045 respect for people with past guests Humble Inquiry Edgar Schein http www amazon com Humble Inquiry Gentle Instead Telling dp 1609949811 ref sr_1_1 s bo oks ie UTF8 qid 1432069344 sr 1 1 keywords humble inquiry the gentle art of asking in stead of telling Lead with Respect Michael Ball Freddy Ball http www amazon com Lead Respect Novel Lean Practice ebook dp B00M4VQG60 ref sr_1_1 s books ie UTF8 qid 1432069492 sr 1 1 keywords lead with respect Building the Emotional Intelligence of Groups HBR Vanessa Urch Druskat and Steven B Wolff http faculty washington edu jwhelan Articles Druskat 20and 20Wolff 20copy pdf Dare to Disagree https www ted com talks margaret_heffernan_dare_to_disagree Empowerment Jim Selman http www paracomm com empowerment article The Five Dysfunctions of a Team Patrick Lencioni http www amazon com The Five Dysfunctions Team Leadership dp 0787960756 CHAPTER 14 Respect for People 81

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15 CHAPTER HIERARCHICAL VS DISTRIBUTED LEADERSHIP Introduction For those embarking on their Lean construction journey it is important to understand that team culture and team cohesion on Lean IPD projects are very different from what is commonly found on traditional projects Therefore choosing the right type of leadership structure for the collaborative environment is key According to William Seed in his paper titled Integrated Project Delivery Requires a New Project Manager The transformational change required for Lean IPD calls for project leaders who possess group facilitation skills management skills organizational skills people assessment and change management skills along with the tactical skills of the past 1 This type of leader requires a new type of organizational leadership structure When the group lacks experience or skills and needs guidance from superiors a hierarchical organization structure works best When the group has the expertise to get the job done a non hierarchical structure with decentralized authority works best CHAPTER 15 Hierarchical vs Distributed Leadership 83

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1 0 Why Leadership is an essential requirement for initiating change developing cohesive teams and creating high performing teams that deliver results As more companies and projects are trying different approaches to increase productivity engage workers foster innovation and improve team dynamics new leadership approaches are emerging Team building and power sharing are resulting in traditional Hierarchical Leadership structures being replaced by more collaborative and inclusive leadership structures commonly referred to as Distributed Leadership structures Within this Distributed Leadership structure a new style of leadership is developing In addition to the skills highlighted by Seed these new leaders are also required to share in leadership responsibilities and act as collaborative leaders Since Lean IPD is built around teams these teams comprised of members from various different companies must be organized managed and motivated properly to create High Performing Teams 2 0 How Integrated projects establish a network of small teams of multi disciplinary experts to work together to optimize problem solutions These focused teams report needs and progress to the project team and work with other focus teams to share and understand impacts of their decisions during a structured and repeating Big Room meeting process When the work progresses to the field the Last Planners become empowered to work together to solve problems as they arise Open transparent information flow is critical to the success of this empowerment This type of Distributed Leadership structure enables groups to focus on specific tasks and allows specialists performing the work to have a high degree of autonomy and sense of empowerment Leadership is often shared among those involved based upon expertise in the current focus area and situation Decisions are usually made on a consensus basis versus a single decision maker in a command and control hierarchical position 3 0 What Traditional construction projects are managed in a hierarchical structure The term hierarchical is defined as the classification of a group of people according to ability or to economic social or professional standing or a graded or ranked series 2 Group success requires matching the leadership approach to the maturity and capability of the group members and the type of tasks being delivered 84 Transforming Design and Construction A Framework for Change

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In Distributed Leadership groups let go of traditional command and control behaviors When the group lacks experience or skills and needs guidance from superiors a hierarchical organization structure works best When the group has the expertise to get the job done a non hierarchical structure with decentralized authority works best Given that ILPD teams depend upon the strong expertise of each member involved are often self selected through the Choosing by Advantages process and are chosen based on best value the best way to leverage the breadth of skills of the ILPD team is through a Distributed Leadership approach According to the Collaborative Lead Training Company in a 2012 article titled 8 Differences between Traditional and Collaborative Leaders 3 the following eight characteristics exemplify collaborative leaders Believe power is greatest in a collective team Openly share information and knowledge Encourage suggestions and ideas from their team Facilitate brainstorming with their team CHAPTER 15 Hierarchical vs Distributed Leadership 85

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Enable their team with immediate time and resources Allow roles and responsibilities to evolve and fluctuate Seek to uncover root causes of issues Offer immediate and ongoing feedback with personalized coaching By employing the appropriate leadership approach project leaders can enable the project team to develop more innovative ways to achieve widespread optimization and better project results overall Distributed Leadership fosters 1 better innovation on projects because ideas can come from multiple inputs rather than just the labeled experts in the room and 2 better knowledge distribution so the project team can still remain high performing even if people come and go Recommendations for maximizing the success of Distributed Leadership includes A willingness to let go of traditional command and control behaviors An inclination and ability to solicit information from others with different perspectives Humbleness and a spirit of continuous learning Decisions need to have buy in for them to be effective References Integrated Project Delivery Requires a New Project Manager Seed W R 2014 International Group for Lean Construction Proc 22nd Annual Conference Oslo Norway June 25 27 pp 1447 1459 1 Merriam Webster Dictionary www meriam webster com dictionary 2 Collaborative Lead Training Company www collaborativelead com 3 The Leadership Challenge Fifth Edition James Kouzes and Barry Posner 2012 Leaderful Concept Railin J 2015 The Leaderful Institute website Boston MA http www leaderful org leaderful html Preparing for Leaderful Practice Raelin J 2004 T D 58 3 March issue 86 Transforming Design and Construction A Framework for Change

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16 CHAPTER RETROSPECTIVES 1 0 What It is common for team members to experience the same problems or encounter variations of multiple projects throughout their careers Oftentimes these projects have different team members who have individual goals and tend to think only about the issues at hand This in turn can lead to a significant amount of waste In the construction industry waste can exceed 50 of a project s cost Lean IPD projects strive for continuous improvement and attempt to address the issues of waste by regularly using Retrospectives A Retrospective is a structured reflective event resulting in a common understanding of a team s experience The Retrospective leads a team to new action It is the Check part of a Plan Do Check Adjust PDCA process A Retrospective is a structured reflective event resulting in a common understanding of a team s experience The Retrospective leads a team to new action It is the Check part of a Plan Do Check Adjust PDCA process CHAPTER 16 Retrospectives 89

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2 0 Why Retrospectives create value on Lean IPD teams that are willing to take the time and effort required to stop momentarily review specific actions or events realistically assess the plan actions outcomes against the expected outcome and commit to improve the next event Teams should conduct Retrospectives in a structured open forum for the purpose of improving future effectiveness Retrospectives facilitate continuous learning and improvement they should be used to ensure improvement of any repeated work cycle A Retrospective is intended to create a positive outcome and should focus on processes not people 3 0 When Retrospectives can be done at any time in a project and in a variety of formats Quick format Retrospectives can be conducted at the end of every meeting or work session Regularly occurring Retrospectives can be conducted at the completion of work cycles or on a recurring basis such as every three weeks Event based Retrospectives can be conducted at the completion of major milestones or the declaration of a major Breakdown 4 0 How Quick format Retrospectives Use the Plus Delta format Are typically facilitated by a team member Regularly occurring Retrospectives Reflect on some portion of the work process In doing this the team asks three questions What do we want to keep doing What do we want to stop doing What do we want to start doing 90 Transforming Design and Construction A Framework for Change

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Can be done in an open team format an anonymous format or a small breakout group format Are typically facilitated by a team member Require the team to align with new actions to take The new actions will involve team member commitments to drive the new actions Note For more information about conducting regularly occurring Retrospectives see Lean Project Consulting Retrospectives Making it Simple Event based Retrospectives Require that an Agenda be issued in advance of the Retrospective see Lean Project Consulting Retrospective Agenda The agenda must include Goals Ground Rules and Process Require that participants come prepared to engage in a constructive manner Require the team to align with new actions to take The new actions will involve team member commitments to drive the new actions May be facilitated by a neutral party depending on the situation Resources Retrospective Agenda by Lean Project Consulting Rebecca Bettler 2008 Retrospectives by Lean Project Consulting Rebecca Bettler 2011 Retrospectives Making it Simple by Lean Project Consulting 2012 Responsibility based Project Delivery Retrospective Sessions by Lean Project Consulting 2007 The One Hour Retrospective by Kathy Iberle CHAPTER 16 Retrospectives 91

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17 CHAPTER RISK OPPORTUNITY REGISTER Introduction One of the greatest challenges owners and or builders face when delivering capital projects is cost management particularly when projects involve many partners and include complex elements that introduce more uncertainty and risk By using a Risk and Opportunity Register in project management project teams can identify share and disclose risks in a transparent manner to collaboratively manage mitigate and preferably eliminate risk A Risk and Opportunity Register also helps teams identify opportunities to enhance a project in ways that typically go unnoticed A Risk and Opportunity Register is part of the overall strategy of building a visual workspace It allows risks and opportunities to be identified and assessed early and allows the team to apply intellectual capital rather than financial capital to mitigate or avoid risks CHAPTER 17 Risk and Opportunity Register 95

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1 0 Why Traditionally project leaders manage risk through a contingency fund that is designed expressly to cover costs associated with unforeseen circumstances Typically risks incurred early in a project reduce the fund quickly and later risks are represented as justifications for additional funding Risks are not made visible early enough to allow the full team to respond A Risk and Opportunity Register is part of the overall strategy of building a visual workspace It allows risks and opportunities to be identified and assessed early and allows the team to apply intellectual capital rather than financial capital to mitigate or avoid risks When used effectively a register can help the project team avoid unnecessary costs that can translate into additional value for all parties involved trade partners design partners and owner The opportunity side of the register offers many benefits It can offset risks create a pool of money to serve as an incentive pool for the team to enhance profits or act as a funding source to drive additional value to the project Often teams are so focused on risks that they fail to give consideration to opportunities Having an actively managed Risk and Opportunity Register encourages project teams to look for and consider opportunities that can enhance the value of the project Finally the register provides an effective tool for sharing knowledge Everyone on the team contributes adds information and views information contributed by others The register also is the basis for weekly or monthly meetings on risk management At the end of the project the register provides teams with a record of how risk was managed and the gains realized through the process for the client and the individual partners Teams are often unaccustomed to thinking rigorously about opportunity and risk It requires practice for it to become a routine part of thinking during planning sessions and work in the field The register is a valuable tool for a project of any scope or type and during all phases of development from project conceptualization to commissioning However the Risk and Opportunity Register is mandatory for any Lean IPD project because the partners are collectively at risk for failure and collectively benefit from any opportunity 96 Transforming Design and Construction A Framework for Change

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2 0 How Integrate the Register Early Share the document and incorporate it into your meetings as early as possible Too often risks aren t identified until they have already become problems For this reason it is important to identify each risk early even if there is a relatively low probability of the risk surfacing For example if there is a 5 risk that a supplier will be six months late the relevant leader should flag the risk so the appropriate team members can begin thinking about potential solutions or alternatives Exercise Discipline Discipline is required to effectively manage the register This includes updating the list before the meeting and agreeing on what items should be acted upon and by what time Ensure adequate time is devoted to register management In the early stages of the project longer meetings with the team may be needed to discuss the register As the list of items on the register grows it might become necessary to filter items by date according to those that are most time sensitive Encourage Problem Solving One of the most valuable benefits of the register is the ability to encourage problem solving For example often a contractor will ask a subcontractor if he or she can adhere to a new more aggressive deadline The default response may often be an unqualified yes or no with little to no discussion This is problematic as the no means there is little flexibility while the yes may represent an unreliable commitment Instead encourage structured dialog on these topics The following phrases can encourage such discussions Yes I can make that problem go away if or Yes I can make that opportunity happen if These conversations can help teams strategize how to make the ifs happen These ifs can lead to significant savings in production costs Brainstorm for Opportunities Teams are often unaccustomed to thinking rigorously about opportunity and risk It requires practice for it to become a routine part of thinking during planning sessions and work in the field Involve everyone on the team in these discussions and encourage all to contribute CHAPTER 17 Risk and Opportunity Register 97

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3 0 What A Risk and Opportunity Register is a list of risks and opportunities with a probability and cost estimate for each aggregated into a collective risk dollar amount for the project Typical broad topics that can generate line items within the register include Changes in assumptions and or occurrences about escalation important on large multi year projects Changes in assumptions and or occurrences about when and what items will be procured Changes in the basis of estimate Changes in the basis of budget Uncovered discrepancies between the basis of budget and the basis of estimate Uncovered discrepancies between the basis of design and the conditions of satisfaction Labor productivity Uncovered issues in the representation design shop drawings fabrication details equipment cut sheets etc Uncovered issues in the realization fabrication procurement installation commissioning Uncovered issues with regulations i e misunderstandings of what it takes to comply 98 Transforming Design and Construction A Framework for Change

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Various formats for representing the Risk and Opportunity Register are provided in the two figures below Figure 1 General format example of a summed list for a Risk and Opportunity Register Description Price of primary widget has quadrupled due to closing of 95 of widget mines Condition of Satisfaction Cost Constraint of less of 500MM Probability 80 Cost x 100MM 80MM Champion Sunset Date Dr Worm July 4th 2076 Description Brief explanation of the area of risk or opportunity An example might be potential for delay in receiving supplier materials Condition of Satisfaction The overarching goals of the team Probability The likelihood that the event will actually happen It s inherently a subjective assessment and doesn t normally need a deep diving analytical process A gut feeling is usually sufficient Cost Two similar definitions that amount to close to the same thing reasonable worst case cost and a cost that could go up by up to 5 or drop to up to 20 less The product of the percentage and the cost is x percentage multiplied by cost This figure can be placed in a line graph to track performance of risk and opportunity management over the life of the project Champion The team member who has ownership of the issue They will likely need help from others on the team to either eliminate or validate the risk but it is their responsibility to see it through to the end Sunset Date The date given for the next notable action item milestone or discussion of the issue It is good practice to allow the pull plan to inform this date for final resolution or last responsible moment CHAPTER 17 Risk and Opportunity Register 99

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RISK Low Priority High Risk High Priority High Risk Tackle these concerns first PRIORITY Low Priority Low Risk High Priority Low Risk Tackle these concerns last Figure 2 Risk Priority Matrix 3 0 When A Risk and Opportunity Register should be utilized from the inception of the project concept through the activation of the asset Early phases At the very start of a project consider getting the integrated team together with the key representative s from the owner and or user and ask the following questions We all know this project will be an unmitigated success but in the hypothetical scenario where it is not what are the things that could happen that would cause us to fail You have the power to make things happen on this project that will improve it Perhaps these are things you have seen work well on other projects or things you have always wanted to happen What are those things 100 Transforming Design and Construction A Framework for Change

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With those questions answered the team can formulate a strategy to eliminate mitigate or manage each risk and develop a strategy to allow each opportunity to occur Later phases Later in the project the meeting becomes a regular one where you as noted above assign estimated probabilities and costs Management of the Risk and Opportunity Register is recommended to occur somewhere between weekly and monthly On smaller projects it can be an agenda item during a larger meeting On larger projects it will often be its own meeting 4 0 Who The Register is used by leaders with the owner designer architect general contractor trade partners and more importantly others directly involved in the actual risks and opportunity as needed Quick Reference Lean Construction Defined 27 Conditions of Satisfaction 133 The Business Deal 139 CHAPTER 17 Risk and Opportunity Register 101

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18 CHAPTER EXPERIENCED LEAN PARTNERS BIG L 1 0 Why Lean IPD is a transformational journey for all participants in any project delivery As with any change the faster the participants can develop effective behaviors the faster they become a High Performing Team Because most programs and projects require the participation of many vendor firms and individuals on a relatively temporary basis it is crucial for teams to find and work with as many experienced partners as possible Teams typically do this through Partner Selection For repetitive builder organizations an Experienced Lean Partner Big L becomes a long term business partner and can act as an extension of the owner operator staff CHAPTER 18 Experienced Lean Partners Big L 103

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Experienced project teams often find that a minimum of three partners that can work in a leadership role preferably more are required to keep a team successfully on task Team Forming and Onboarding efforts are critical to this success For repetitive builder organizations an Experienced Lean Partner Big L becomes a long term business partner and can act as an extension of the owner operator staff 2 0 What A Big L is a project leader who advocates for the Lean project delivery process and is actively involved in training and mentoring others involved in the project A Big L is typically a primary contract signer and involved in the Business Deal A Big L helps to create and champion the Conditions of Satisfaction and thus align all participants with the team determined goals of the project A Big L Facilitates meetings with strong Agenda and Big Room management It is helpful to enlist a variety of Big Ls from various industry perspectives for example architects designers trade partners and GCs It is often easier for peers to encourage or mentor each other rather than learn from traditional customer vendor relationships Several Big Ls must share project leadership and champion the change process in moving from traditional to integrated project delivery particularly because reversion to old thinking is a constant threat If these Big L partners are in non traditional leadership roles it helps set the stage for a significant project cultural change Big Ls Are among the first partner selected to form a new project team Must be knowledgeable of and an advocate for Lean thinking and the Lean IPD processes Have strong leadership abilities Behave as an extension of the owner s staff Have or create a long term business relationship with the owner and others Must be a committed Lean IPD learner not just for the project but also for his or her own firm company Bring expertise to the project Are a Lean IPD advocates in the marketplace Help others with Lean growth without business provocation 104 Transforming Design and Construction A Framework for Change

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Must be capable of assuming non traditional leadership roles Must be willing to admit mistakes and self correct when deviating from Lean practices A Big L is a long term partner with his owner clients because of the value generated as a team A Big L can differentiate himself from his competitors by being a market leader becoming more efficient and being known as an industry change agent Becoming a Big L is both challenging and valuable A Big L is a long term partner with his owner clients because of the value generated as a team A Big L can differentiate himself from his competitors by being a market leader becoming more efficient and being known as an industry change agent A strong partnership with a client and a Big L partner will share the following characteristics We believe mutually beneficial partnerships will drive Better Project Delivery product outcome delivery experience Conditions of Satisfaction and parallel learning Partnerships will require a commitment to Consistent Learning develop baselines improve performance measure outcomes and improvement on each project We as partners will be dedicated to Continuous Improvement pursuit of perfection challenge old ways challenge each other and grow in knowledge together A common understanding of our partner s needs will help Drive Customer Value assessing the customer s real needs determining value treating each other as customers caring about each other s needs Understand Owner Operator Processes and Experiences on boarding O O standards and specifications payment process informational needs improving for collective benefit Retain Partners for Future Projects creating relationships understanding expectations maintaining a deep level of trust continued work training new partners together CHAPTER 18 Experienced Lean Partners Big L 105

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Selecting the Right Partners for the Right Projects understanding skills right sizing partner to job balancing workflows preparing the team for success Partners will look for ways to Improve the entire Value Stream understanding the value stream looking for waste improving the process purchasing handling payments and group buy keeping promises examining each other s processes to drive improvement Meeting Prequalification Standards insurance work ethic experience Define and Assign Scope that Adds Maximum Value determining who does what work how much work and when identifying risk quantifying it and covering it with skill or mitigation funds and efforts Quick Reference Leadership and Lean IPD Projects 69 Team Partner Selection 117 Continuous Improvement 179 106 Transforming Design and Construction A Framework for Change

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19 CHAPTER EARLY STAKEHOLDER INVOLVEMENT Introduction Traditional project delivery delineates clearly between the design phase and the construction phase These projects assume the build process is a commodity and the best way to drive value is to tender a bid and select the lowest cost qualified participant Collaborative projects have shown that there is significant benefit when the trades and specialty contractors are invited to assist during the design phase Input from the builders informs better constructability identifies more material and product selection and provides a more complete design Additionally it affords the project many alternatives in regards to pre fabrication and component assembly and significantly increases predictability through improved efficiency safety and quality There are numerous benefits to bringing in partners early The most significant among them are a cost savings and the elimination of waste CHAPTER 19 Early Stakeholder Involvement 107

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1 0 Why There are numerous benefits to bringing in partners early The most significant among them are a cost savings and the elimination of waste Early stakeholder involvement reduces the risk of having to reconfigure designs or work that could have been prevented Additionally the MacLeamy curve in Figure 1 below shows how it becomes more difficult to change a project the more developed it becomes Design Effort Effect MacLeamy CURVE 1 2 1 ability to impact cost and functional capabilties 2 cost of design changes 3 traditional design process 4 IPD design 4 3 traditional Predesign Schematic Design Design Development Construction Documents Agency Permit Bidding Construction integrated Conceptualization Criteria Design Detailed Design Implementation Documents Agency Coord Final Buyout Construction Figure 1 MacLeamy curve Adapted from MSA 2004 as introduced by MacLeamy 2004 Other benefits of early stakeholder involvement include Cost and delivery predictability Faster and more reliable cost estimating Reduced schedule through concurrent shop drawing submittal processes Reduced schedule better coordination through earlier material procurement 108 Transforming Design and Construction A Framework for Change

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The approach to integrating partners earlier is fairly straightforward Begin by developing a Request for Proposal that defines earlier stakeholder participation then choose partners through a collaborative interview process structured more like a work session than a formal interview 2 0 How As part of the early stakeholder involvement process determining who can add value during which portion of the project is a value based decision Rather than choosing by low price bid you should look to other attributes such as a willingness to learn chemistry among team members innovativeness skills experience and expertise The approach to integrating partners earlier is fairly straightforward Begin by developing a Request for Proposal that defines earlier stakeholder participation then choose partners through a collaborative interview process structured more like a work session than a formal interview Spend time defining the desired attributes of those partners so that those performing the selection understand the parameters since the parameters are not transaction based as in a traditional process This engagement should be structured so that partners are compensated for contributing during the design assist and pre construction phases and have the opportunity to continue into the build portion and or compete to become full project partners A request for commercial terms should contemplate current and future contracting alternatives so that they are understood up front When developing the commercial terms best value unit pricing lump sum time and materials or other be sure to factor early partner involvement into project spend projections While early stakeholder engagement has additional upfront costs it results in lower overall costs for the whole project since the risk for error will be significantly reduced Be aware of potential obstacles to involving stakeholders earlier in the process It may be difficult to recruit partners to collaborate on a design before there is a defined scope of work Traditionally stakeholders respond to developed ideas better than they do to concepts and sketches Many collaborative projects have found it beneficial to include a Lean Coach to serve as an advisor during the design pre construction and build phases 110 Transforming Design and Construction A Framework for Change

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3 0 What A key to successful project delivery is engaging all stakeholders at the best possible moment This ensures that the expertise of the end users skilled trades and other contributors is utilized in a manner that optimizes performance This is a departure from how the building industry has traditionally operated For example trade partners are not typically involved as the design is being vetted or finalized they are typically engaged during the pre construction or construction phase References MacLeamy Curve http msa ipd com MacleamyCurve pdf February 21 2015 MSA 2004 Collaboration Integrated Information and the Project Lifecycle in Building Design and Construction and Operation MacLeamy P 2004 Introduced at the Construction User s Roundtable WP 1202 August Quick Reference Learning to See Waste 23 Coaching 73 Distributed Leadership 83 CHAPTER 19 Early Stakeholder Involvement 111

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20 CHAPTER RAPID CREATION OF A HIGH PERFORMING TEAM 1 0 Why The project team is the lifeblood and foundation of an effective and efficient Lean IPD project The challenge of many projects is that this team is also temporary and needs to be able to perform at a high level relatively quickly For this reason it is important to quickly create a high performing team so that it can to make the significant changes required in order to deliver the outstanding results expected Most traditional teams do not successfully tap into the full collective knowledge of the participants Additionally because the Lean IPD project creates a new culture that requires different behaviors effective Partner Selection and rapid team building provide the opportunity to shift the behaviors that help drive the culture evolution Rapid High Performing Teams enable you to see results more quickly CHAPTER 20 Rapid High Performing Teams Creation 113

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2 0 What A high performing team Is built on a strong foundation of trust among all team members Has a strong team culture of respect that enables members to effectively deliver against Conditions of Satisfaction Celebrates both small and large successes of the team and the individuals Breaks down barriers through innovation and continuous Retrospection Breaks down traditional silos to maximize skills and optimize performance The result of long term relationships is better and better quality and lower and lower costs 3 0 How Team building events Team review of the Leadership chapter Identify and align on the team goals The internal team challenges should be aggressive to the point that achieving them requires near perfection These are different than the external team goals which define the project as successful The goals must be aligned with project Conditions of Satisfaction Develop the vision for the team through Onboarding Identify and deliver training the team needs to become high performing on the project task at hand using simulations where beneficial Identify team norms Develop project specific diagrams noting team member roles and interfaces Create a framework and environment for effective peer to peer coaching and mentoring to develop required behaviors Assess individual and team strengths to identify and breakdown barriers that could inhibit successful execution Ensure the strength assessments are transparent to other team members and are conducted within a team development training exercise 114 Transforming Design and Construction A Framework for Change

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Performing Performing Team Team THE THERESULT RESULTOF OFLONG TERM LONG TERM RELATIONSHIPS RELATIONSHIPSISISBETTER BETTERAND AND BETTER BETTERQUALITY QUALITYAND ANDLOWER LOWER AND ANDLOWER LOWERCOSTS COSTS W W Edwards Edwards Deming Deming Create a framework and environment for effective peer to peer coaching and mentoring to develop required behaviors References References Sources Sources 1 0 1 0 Why Why Focus on listening to others and be aware of how personal perspectives contribute Team building Speed SpeedofofTrust Trust Stephen StephenM R M R Covey Covey Team Revie 2 0 2 0 What What to what participants hear The TheFive FiveDysfunc Dysfunc ons onsofofa aTeam Patrick Team PatrickLencioni Lencioni Iden fy an should be perfec on Team TeamBuilding Building de ne the Define roles and responsibilities and facilitate their evolution through continuous Condi ons Goals Goals learning Develop th Iden fy an Goals and outcomes of the events on the pro fy te RAPID CREATION OF A HIGHIden PERFORMIN Move quickly through the forming storming and norming phases of team Develop pr interfaces development so the team is performing at a high level on the project Create a fr Team building events ing and me k Lencioni Develop a plan to maintain and continuously strengthen the team health Team Review of the LCI Leadership ar cle Assess ind Zander throughout the project Iden fy and align on the team goals The internal team ch that could should be aggressive to the point that achieving them req ments are perfec on These are di erent than the external team goa This should include team assessments within a te de ne the project as successful The goals must be aligned Focus on li ons of needed Sa sfac on Define and build the project or team culture Condi specifically for the success for contribute Develop the vision for the team through Onboarding this specific project team Create an e Iden fy and deliver training the team needs to become hi their mind on the project task at hand using simula ons where bene Develop team culture De ne role Iden fy team norms con nuous Develop project speci c diagrams no ng team member r interfaces Goals and outc Create a framework and environment for e ve peer to ec Move quic ing and mentoring to develop required behaviors team deve Assess individual and team strengths to iden fyproject and break that could inhibit successful execu on Ensure the strengt Develop a ments are transparent to other team members health and are co th within a team development training exercise This should Focus on listening to others and be aware of persona how De ne and contribute to what par cipants hear success for Create an environment that allows all par cipants to ac tev Develop their minds See Big Room rules Things keep De ne roles and responsibili es and facilitate theirtoevolu CHAPTER 20 Rapid High Performing Teams Creation 115 Be aware o con nuous learning performan Goals and outcomes of the events Team crea Move quickly through the forming storming and Benorming mindfu Everybody Everybody an A A Student Student Benjamin BenjaminZander Zander thatis isan allows all participants to actively speak their minds 3 0 3 0 How How Create an environment 3 0 How 3 0 How

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Things to keep in mind Be aware of the external cultures that will also affect the culture and performance of the team Team creation is a continuous process Be mindful of team boundaries and where they lie within a specific team and the larger project team Breakdown warning signs Information being withheld Decisions made in a vacuum Deliverables consistently missed Conflict not visible and not constructive References Speed of Trust Stephen M R Covey The Five Dysfunctions of a Team Patrick Lencioni Everybody is an A Student Benjamin Zander Quick Reference Onboarding 187 Team Partner Selection 117 Conditions of Satisfaction 133 116 Transforming Design and Construction A Framework for Change

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21 CHAPTER TEAM PARTNER SELECTION 1 0 Why Lean IPD project teams produce better results when they work with a broad spectrum of specialists and builders early in the design process This broadens the team knowledge amplifies the ability to identify risk and mitigation strategies and delivers better constructability outcomes When a project team works with a variety of specialists the team also will have an early understanding of costs thus empowering the owner operator with improved Value decision making capability The success of any project is linked to the ability and synergy of a team and how quickly it can reach high performance Who do you select When do you make the selection How do you make the selection The success of any project is linked to the ability and synergy of a team and how quickly it can reach high performance Who do you select When do you make the selection How do you make the selection CHAPTER 21 Team Partner Selection 117

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The typical process of selecting team members is broken and laden with wasted effort Hundreds of pages in an RFP response are never read the Vice President of Business Development never delivers on his promises or only the least expensive initial prices are selected When assembling Lean IPD project teams it is crucial to use a different approach and select team members who will deliver the right project for the best cost as determined by assessing the delivered cost against the bid or first cost Effective Lean IPD teams Use conceptual estimating specifically Target Value Design Collaborate well Have effective team chemistry Innovate and Are comfortable in a learning environment The RFP and assessment process should therefore seek to determine these effective team traits Assumptions Application can be open to any team member from designer to GC CM to trade partners to consultants etc Application is intended for one team for a specific project but with the intent of forming a long term healthy relationship Trust is developed when transparency goes both ways 2 0 Who What makes a high performing team member The following assumes the potential partners have met some level of pre qualification to ensure technical capability and financial soundness 118 Transforming Design and Construction A Framework for Change

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Factors and criteria Ability to affect the final project Conditions of Satisfaction The intent of the factors listed below should be considered in the light of how this team member can affect the final overall project outcome not just the member s legacy responsibilities Name on the truck or the person Company alignment is good personal alignment is better The company culture and values should align with the team and their goals The proposed team members should have the support of the company leadership The importance should lie on the connection of the team to the proposed individuals from those companies The selection should ensure that the proposed team members are aligned with team values and culture that support the team goals Note This can be managed as a two phased approach of qualifying the company and then interviewing individuals for the right fit Chemistry More comfort with personality fit is better do they fill a strength gap Do the proposed team members have a natural chemistry with the current team The selection process should illuminate individuals natural strengths and weaknesses This is similar to the interview process of hiring an employee for your company Do the proposed team members fit in and how will they function in this team environment Innovation More innovative nature is good more evidence of innovation is even better Do the proposed team members challenge themselves their company and or the industry to try new things Where have they innovated within their own organization Where have they innovated on recent projects CHAPTER 21 Team Partner Selection 119

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Learning and Continuous Improvement More learning attitude is good more examples of continuous improvement is better Are the proposed team members humble enough to admit there is always room to learn and improve yet confident in their skill sets and knowledge Can the proposed team members provide examples of their humility and confidence Commercial Terms Clear and concise documentation of terms is good comfort with an Integrated Form of Agreement IFOA is better While this should not be a major focus for selection it is prudent to understand a company s terms for doing business and their endorsement of the team s contractual arrangement Have these items on hand during the selection process Profit especially if the delivery method will involve IFOA the company needs to state what profit they would be willing to place at risk This is typically and initially based as a percentage of the company s work responsibility Overhead what amount keeps the lights on in the home office This is also typically based on a percentage of the company s work Personnel Rates what is the billable rate for salaried personnel and the rates for direct labor burdens Define the difference between Direct Cost and Indirect Cost 120 Note More information can be requested but understand that you should attempt to establish a level of trust and transparency even at this earliest stage If a potential team member perceives that you are case building then the team is already pointed in the wrong direction Trust is developed when transparency goes both ways When using an IFOA the terms are full open book accounting It is imperative that all team members are open and willing to share the details of their costs and how they get assigned to a project While it is understood that firms have different accounting methods this sharing is necessary to insure no costs are doubled up Transforming Design and Construction A Framework for Change

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Desired Skillset Stronger and more effective skills are better Conceptual estimating can the proposed team members effectively forecast the direction of the project cost and clearly relay that information to the team Can they envision the project that answers the Conditions of Satisfaction and illustrate those costs Speak up and Speak out can the team members function in a group and challenge each other in a respectful and non disruptive manner Forecasting can the team members understand the anticipated effort to accomplish the team goals and forecast the time and costs that support that accurately Transparent are the proposed team members comfortable sharing all of their detail that supports their estimating and forecasts Self Awareness can they recognize when additional resources are necessary and ask for help Technical Skills are the proposed team members highly capable in core work product responsibilities When using an IFOA the terms are full open book accounting It is imperative that all team members are open and willing to share the details of their costs and how they get assigned to a project 3 0 How What is the process to get the right team members at the right time for a project Self Selection The team grows organically For example the Client selects Team Member A the Client and Team Member A select Team Member B the Client and Team Members A and B select Team Member C and so on This type of team assimilation helps ensure trust and value based selections and aids in faster team synergy CHAPTER 21 Team Partner Selection 121

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Risk Based Selection not mutually exclusive with Self Selection What are the greatest risks and or decisions facing this specific project Which experts can best mitigate that risk or inform those decisions Mapping out the decisions and their placement on the project timeline should inform when the team members are selected and onboarded This keeps the early project development spend in check and forces the team to understand the risks and decisions that need to be addressed The Invitation The request for proposal RFP should set the stage for the type of environment you are attempting to create It should also focus on the key aspects Is the ask lengthy wordy and loaded with legalese that attempts to paint a member into a financial corner or is it efficient and direct Does it explain the nature of the project explain why the team member is being asked to the table and highlight what the team is specifically looking for in a new team member It is helpful to include the meeting agenda Some teams have been successful in using the A3 format for both the RFP and the expected response They also request r sum s for all proposed team members Allow responders enough time to develop a response For an A3 response two to three weeks has proven enough to frame and develop the response The RFP should be built to suit each project Note As soon as a need is known reach out to potential team members and give them time to ensure appropriate team members can be made available for upcoming projects The Meeting The actual meeting is best framed as a conversation interview and not a prepared presentation Think about how you would interact with a potential employee Facilitation the meeting led by the right person helps ensure successful outcomes 122 Transforming Design and Construction A Framework for Change

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Interviewers should Understand and reach consensus on the selection criteria Ask the team what has made a good team member in the past and what questions can illuminate that trait in the proposed partner Assign those questions to individuals to ensure that those traits surface during the interview Address questions to specific proposed team members and hold them accountable to respond to the interviewer Try to avoid the proposed team members from passing the question to their desired responder The Room If possible use a round table it will best facilitate direct conversations Strategically and sporadically place empty seats around the table to force the proposed team members to spread out among the current team This seating arrangement avoids the Us vs Them scenario and facilitates better conversations Allow enough time for conversation Have a dedicated person manage the clock Interviews lasting from 45 to 90 minutes have proven to be appropriate Allow enough time between interviews to discuss and document the findings Note Teams have experimented with different types of interview styles including problem resolution in a team atmosphere and work site visits The goal is to allow enough time to analyze and understand the proposed team member and assess his or her ability to problem solve mitigate risk and add value Who comes to the meeting For the team anyone who has a stake in the project and considers the selection of this team member critical to their performance or anyone who has specific knowledge of the deliverables this participant will provide For the proposed team member the attendees should include the lead personnel who will be doing the work designer estimator project manager supervisor etc and someone that can speak for the company and make a commitment on the company s behalf The meeting should not include business development people and superfluous executives CHAPTER 21 Team Partner Selection 123

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The Decision Make the decision quickly Successful teams have had the interviews over a day or two day period and made the decision at the conclusion of the meetings This establishes an atmosphere of an action oriented team focused on results and advancement The more time that expires between the interview and the decision the more details fade and memories fail Note this is an opportunity to display and establish the desired culture of trust Tool teams have been successful using Choosing by Advantages to organize gain consensus make the decision and document the process and information The Follow Up A quick retrospective with the successful new team members has proven beneficial Why were they chosen Where could they improve their process What were the concerns of the team and how can they be addressed What about the process from the point of view of the interviewee could be improved What concerns does the newest team member have and how can they be addressed Dive deep with unsuccessful invitees providing a transparent glimpse into how and why others were selected Ask questions similar to those above It is valuable to the invitees to hear back from the interview committee This is an opportunity to learn Take interview notes and share the decision making outcome to help those who did not win improve Be candid and fair It is also valuable for the winning partners to understand why they were selected This can help establish expectations 124 Transforming Design and Construction A Framework for Change

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22 CHAPTER CHOOSING BY ADVANTAGES 1 0 Why When applied appropriately Choosing by Advantages CBA allows for visual and transparent decision making It also aligns with the desired values and culture of Lean IPD and allows teams to emphasize a project s value to its stakeholders customers and clients With CBA decision makers can reach consensus focus on outcomes and understand all of the factors considered during the decision making process CBA is a decision making system that acknowledges all decisions are essentially subjective but then guides the participants towards basing the subjectivity on objectively discovered and documented facts 2 0 What Many decision making methods or systems are flawed and can thus lead to poor decision making CHAPTER 22 Choosing by Advantages 127

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CBA is a decision making system that acknowledges all decisions are essentially subjective but then guides the participants towards basing the subjectivity on objectively discovered and documented facts Jim Suhr the creator of CBA explains First we teach people how to use correct data Second we teach them how to use data correctly Within the CBA system language is very important Five major CBA terms are defined as Alternatives are people things or plans from which one will be chosen An attribute is a characteristic quality or consequence of one alternative one person one thing or one plan An advantage is a difference between the attributes of two alternatives Factors are parts of a decision such as a canoe weight stability or color Factors contain data that are required for making a decision A factor is not the same as an attribute A criterion is a standard rule or test on which a judgment or decision can be based A criterion is a decision that guides further decision making The meaning of the word criterion is not the same as the meaning of the word factor They are also not attributes or advantages CBA is based upon the following four principles 1 The foundation principle of sound decision making Sound methods base decisions on the importance of prospective differences among the alternatives not factors criteria goals roles categories objectives attributes pros and cons and so forth This principle was recognized and validated at least three centuries ago 2 The fundamental rule of sound decision making Sound methods base decisions on the importance of advantages not advantages and disadvantages An advantage is a difference between the attributes of two alternatives 3 The principle of anchoring Sound methods anchor decisions to the relevant facts In the CBA vocabulary methods that do not base decisions on the relevant facts are called unsound methods 4 The pivotal critically important sound decision making principle Engineers architects leaders in organizations and so forth are professional decision makers They need to learn and skillfully use sound methods of decision making 128 Transforming Design and Construction A Framework for Change

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4 0 When CBA often is used when multiple variables need to be considered to make an informed decision This may mean multiple solutions exist but a team can t determine the best outcome This process is often useful when various constituents are focusing on their individual needs and not those of other stakeholders CBA often leads to alternatives previously not considered as participants gain a deeper understanding of the attributes factors criteria and advantages This is an excellent tool to document the reasons behind decisions particularly if parties not involved in the process need justification for these critical decisions CBA often is used when multiple variables need to be considered to make an informed decision This may mean multiple solutions exist but a team can t determine the best outcome CBA offers multiple ways to reach both simple and complex decisions To be effective and sustainable CBA should be applied to any decision facing a team Teams that frequently use CBA readily build a trust and familiarity with the system CBA works well when teams are assessing mutually exclusive alternatives i e different HVAC systems or structural frame types for a building It also works well when prioritizing resource allocation such as how to best apply labor resources or which value add options should be adopted to generate the most savings References The Choosing by Advantages Decisionmaking System Jim Suhr One can become a Certified Masters of CBA through Jim Suhr s training program offered periodically 130 Transforming Design and Construction A Framework for Change

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23 CHAPTER PROJECT CONDITIONS OF SATISFACTION COS 1 0 Why Lean IPD Projects have been shown to out perform traditionally delivered projects because there is a focus on alignment of interests organizational integration and agreement on project priorities for all parties involved These project priorities are called Conditions of Satisfaction CoS in Lean IPD Projects These CoS guide decision making throughout development and implementation When consensus is difficult to reach these conditions become the measuring point from which to decide The Project CoS define what success means for the project team Co developing Project CoS is a key element for developing and maintaining stakeholder alignment CHAPTER 23 Project Conditions of Satisfaction CoS 133

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While a project has cost and schedule goals important for project success CoS are co developed to keep the Project Team aligned on additional important criteria the team believes to be critical for Project success CoS are the criteria that the team uses to make decisions develop a common language for collaboration define expected behaviors drive team culture and work together to achieve positive outcomes Well designed CoS ensure that all participants are fully engaged with their labor talents and experience With CoS everybody wins While a project has cost and schedule goals important for project success CoS are co developed to keep the Project Team aligned on additional important criteria the team believes to be critical for Project success 2 0 What Each CoS is a commitment and all team members are responsible for delivering according to the CoS By agreeing to and signing up to the CoS the project team members make a Reliable Promise to one another This behavior is aligned with the culture that needs to be present on a Lean IPD Project The Project CoS define what success means for the project team They are codeveloped by the owner client and the project partners The CoS add value to the client and to the Project Team They must be measurable in some fashion This does not 134 Transforming Design and Construction A Framework for Change

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mean each CoS needs to be a highly mathematic objective assessment however each CoS does need to clearly explain how it will be measured and how it will be known if it has been met i e impeccable coordination that results in no field conflicts or system compromises Typically there are eight to 15 CoS established Usually one CoS will address a budget objective one will address a schedule objective and one will address a safety objective Other options for CoS might be Everyone is profitable It may be good to get this out in the open and get collective alignment The number of months in which the project is delivered Number of RFI s Number of Change Orders Number of punch list items Percentage of below market cost Percentage of operational cost improvement Percentage improvement in productivity Rapid improvement Exceptional teamwork Quality at acceptable levels the first time As measured by No program schedule impacts due to constriction quality No unplanned factory impacts All schedules developed and executed using the Last Planner System Total Project Transparency Strong Stakeholder Involvement Rapid Mitigation Existing Condition Discoveries CHAPTER 23 Project Conditions of Satisfaction CoS 135

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The CoS should be continually reviewed against the progress and learning of the team to ensure that the CoS remain relevant Do not rank the CoS in order of importance The fundamental truth of a CoS is that it must be met therefore all of them must be met Ranking CoS simply creates opportunities for the team to neglect one or more lower ranking conditions The CoS should be continually reviewed against the progress and learning of the team to ensure that the CoS remain relevant One way to do this is to include a graphic on dashboards or other visual management tools It is acceptable for the CoS to evolve during the life of the project what s important is that there is open communication on this subject among all the stakeholders Equally important is ensuring that there is collective agreement on the changes as they happen This is also true of the methods of measuring whether the CoS have been met Conditions may be met early and retired as the project progresses There may be a risk and reward tie to the CoS The team should be rewarded for meeting them and there should be some penalty if they don t The risks and rewards can range from simple and elegant to complex and convoluted depending on project duration and contract structure Consider using tension based language in framing the CoS For example Needs to impress visitors as they approach and enter the building and yet not overwhelm the other buildings in the neighborhood 3 0 When CoS should be co developed as soon as possible but should not be finalized until all the key players are engaged to have input and agree to the CoS Typically it gets harder to add new or modify existing CoS the longer the project goes on Some owners attach the CoS to the contracts and tie the ability to earn added profit to meeting the CoS or the inability to meet them to reductions in profits Be wary of having 136 Transforming Design and Construction A Framework for Change

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24 CHAPTER THE SHARED RISK REWARD BUSINESS DEAL The Deal is a unique business construct in the Lean IPD environment that attempts to align all project participants to a shared project goal called Conditions of Satisfaction CoS The Deal ties the profits of several project participants to the outcome of the entire project rather than to individual performance The intent is to open the eyes of the participants to the waste that has been generated by the silos of previous contract forms It also encourages participants to act as one entity thus optimizing the entire value stream rather than focusing on individual piecework It is best when a wide variety of project participants participate because they can offer projectwide design and build perspectives The intent is to open the eyes of the participants to the waste that has been generated by the silos of previous contract forms CHAPTER 24 The Shared Risk Reward Business Deal 139

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1 0 Why The construction industry typically contracts for work in a way that rewards and punishes individual companies for their individual performances The traditional contracting system is inefficient so much so that owner operators typically expect that projects will be late over budget and inaccurate The contracting strategy is at odds with the desired outcome Despite this dysfunction not much has changed over at least the last 50 years because everyone who is not an owner operator on the team has learned how to make money from a dysfunctional system Contractors often must choose between supporting a project s success or their company s success This dysfunction causes project participants to choose between behaving in a way that supports project success and behaving in a way that supports individual companies success If the behavior that will help the project will cost a company money and the contract they are under does not allow them to be compensated for that effort the project manager is often forced to choose between helping the project or getting a bad performance review and losing a salary bonus If the behavior were aligned we would not have this problem In contrast The Deal encourages collective teamwork to achieve collective success The financial logic of a shared risk reward deal reinforces the culture of a single team having a single focus The Deal also reinforces all the other characteristics of the Lean IPD model It encourages the team to collaborate particularly during a project s challenging or difficult stretches The financial logic of a shared risk reward deal reinforces the culture of a single team having a single focus The Deal also reinforces all the other characteristics of the Lean IPD model 2 0 What The Deal ensures that project partners establish a shared pool of money i e a Profit Pool or Incentive Compensation Layer The owner operator typically guarantees that all true costs will be paid regardless of outcome thus removing the fear of catastrophic failure and encouraging innovation With an IPD contract Integrated Form of Agreement this pool of money can be structured to directly or proportionately increase or decrease depending on the cost of the work 140 Transforming Design and Construction A Framework for Change

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Note Tying the pool solely to the budget essentially ties it to the schedule because the longer a project goes the more overhead costs increase and the more exposed the project becomes to escalation increases It also ties to the scope because scope typically will be a key element of the Project CoS Where other contract forms are in place this pool will likely need to be created with some form of proxy Project compensation can be more specifically tied to the CoS through contract performance bonuses or contract penalty for missing targets This has shown to be helpful in more stringent procurement environments Aligning the bonus to the outcome encourages teamwork and rewards the team accordingly It also discourages silos 3 0 How Below is the ideal situation that is available under an IPD contract The intent here is to present a goal to which a project can strive with other contract models The difficulty in achieving the ideal situation varies dependent on the contracting model in place Here is a rough guide to degree of difficulty to construct a business deal that supports everything that needs to happen on the project Integrated Project Delivery Contract EASIEST OF ALL Design Build Done Right IPD like FAIRLY EASY Multiple Prime or CM At Risk MODERATELY CHALLENGING Design Build Done Wrong Des Bid Build like HARD Design Bid Build HARDEST OF ALL The intent of the business deal is to directly motivate the business owners key project team leaders and financial managers to achieve project goals It is not to directly motivate last planners and support staff By motivating the business owners and key team leaders they then become a resource and advocate for changing and aligning the behaviors of their staff with the needs of the project A top down buy in from each organization makes adoption much easier The team established four buckets of cost Owner direct cost not at risk to the team Total project hard and soft costs including home office overheads An appropriate project management team contingency Aggregated team profit CHAPTER 24 The Shared Risk Reward Business Deal 141

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The last three buckets combine to become the Current Working Estimate CWE The owner operator should set a project investment threshold from which the team creates a target cost and can use Target Value Design to meet the target The collaborative team works together to discover the detailed project requirements and meet this target through innovation A detailed CWE is established and validated between owner operators and partners An initial target is created that is a meaningful stretch yet attainable One key dynamic to create is to have the designers to be at risk for project failure during construction and for builders to be at risk for not informing the design well enough during design This will create a significant need for collaboration among all partners and will require input and respect across traditional responsibility boundaries This is a key benefit to the owner as the team is now responsible for improving the communication between designers and builders to avoid the typical causes of project change orders and delay This risk structure can be particularly challenging for a Design Bid Build contract as the team is not complete during the design phase One key dynamic to create is to have the designers to be at risk for project failure during construction and for builders to be at risk for not informing the design well enough during design 4 0 When Most Lean IPD teams solicit business terms input during the Partner Selection process This helps define profit needs and personnel unit costs in a competitive environment even though the project details are not sufficiently mature to transfer risk It is crucial that the project risk reward criteria link directly the project scope in the project CoS This is a critical timing issue among all parties If a project is not sufficiently defined partners may be subject to undue risk resulting in inflated contingencies and unwanted protectionist practices Teams should create the target and associated profit pool ownership as soon as there is validation around the CWE By doing this teams can define the individual ownership of the profit pool thus clearing the way for partners to assess the project costs By doing this teams minimize scope hoarding and scope avoidance The best project partners assume the appropriate work without concern for impact to profit This 142 Transforming Design and Construction A Framework for Change

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helps align scope with capability allows scope to be aggregated and to be shifted as the needs change Project teams new to partner selection should seek advice from companies experienced with Lean IPD and consult with legal and insurance experts Stretch goals embedded in the business deal create tension that drives innovation These goals should be significant and not limited to 2 or less The goals should recognize the significant waste embedded in the system and encourage partners to think differently about the way they do business both individually and jointly The shared savings should be commensurate with the willingness to take risk and the effort required to meet those goals Contingency should be determined based on risk not historical experience Teams should strive to identify and create mitigation strategies for any known or perceived risk A portion or all remaining contingency should be shared with the partners to incentivize all parties to efficiently resolve risk issues While the premise of this article is that the owner be fully involved and engaged with the partners in all aspects of the delivery the owner does not always need to be a participant in the business deal There are contract models where the above structure is entirely within a GC led progressive Design Build structure However the owner client still needs to be an engaged participant in the project and it is particularly vital that before the final cost is agreed to the owner must have a clear robust project CoS Quick Reference Lean Construction Defined 27 Partner Selection 117 Conditions of Satisfaction 133 CHAPTER 24 The Shared Risk Reward Business Deal 143

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25 CHAPTER LAST PLANNER SYSTEM OF PRODUCTION CONTROL 1 0 Why Why do Lean projects typically start by using the Last Planner System LPS The aim of Lean IPD is to deliver all of the value promised to the client without the usual waste that typically comes with projects in the built environment The vast majority of those projects are performed by a group of specialists who are convened for one project For the most part those specialists set out to perform their part of the project while seeking to maximize their use of resources The local optimization runs counter to the optimization of the project as a whole resulting in poor flow waste of many types and overburdening of resources The Last Planner System brings stability to the project by giving attention to flow while reducing variation in the hand off of work between the specialists in a continuously improving situation The Last Planner System of Production Control was developed by H Glenn Ballard in a thesis submitted to the Faculty of Engineering of the University of Birmingham for the degree of Doctor of Philosophy in May 2000 CHAPTER 25 Last Planner System of Production Control 147

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2 0 What What makes the LPS a Lean system for planning and managing work The intention of the system and the fundamental nature of the practices involved are clear Produce predictable uninterrupted workflow by creating a coherent set of commitments that connects the work of the specialists to the promises of the project to the client and coordinates their actions This happens in five recurring conversations each designed so the team can manage the network of commitments inside each of their accountabilities The Last Planner System Conversations that Design and Activate the Network of Commitments Greg Howell and Hal Macomber The Last Planner System brings stability to the project by giving attention to flow while reducing variation in the hand off of work between the specialists in a continuously improving situation What are the five conversations People often refer to the conversations as should can will did learn planning Pull planning for Production System Design establishes what should be done Make ready planning gets the upcoming work in a condition so that it can be done Weekly work planning establishes the set of promises from specific people for the work that will be done Daily commitment management supports the last planners in staying on track with their promises so that the work did get done At least weekly the last planners take time to learn from their performance 148 Transforming Design and Construction A Framework for Change

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3 0 How Can the Last Planner System be used in design Yes While design work doesn t have the hard logic of construction work it is still accomplished in a network of commitments made among specialists That network can be designed and managed so that the work that should be done can be done and will be done Some adaptations have been made Why is the LPS trademarked The Lean Construction Institute LCI holds a registered trademark on Last Planner LCI s purpose in trademarking the term is to take care of the use and meaning of Last Planner and the Last Planner System of Production Control There is no intent to prevent people and companies from using the LPS to deliver their projects All LCI asks is for people to include the registered trademark once in any document to note that the Lean Construction Institute is the owner of the trademark and to include LCI s website with the attribution www leanconstruction org References Responsibility based Project Delivery by Lean Project Consulting Hal Macomber and Rebecca Bettler 2011 Quick Reference Lean Construction Defined 27 Experienced Lean Partners 103 About LCI 265 CHAPTER 25 Last Planner System of Production Control 149

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26 CHAPTER RELIABLE PROMISING 1 0 Why Construction projects traditionally encompass multiple companies contracted individually for a short term to one general managing firm Each company typically comes to the project with independent and mutually exclusive goals definitions assumptions and generalities These differences can lead to misunderstanding incorrect work rework poor coordination over production and missed deadlines Lean IPD projects focus on improving relationships and conversations to improve communication thus reducing Breakdowns through reliable promises In the context of Lean IPD a promise is a commitment and an agreement Reliable Promising and personal commitment making show respect for people and build trust among team members Reliable Promising creates ownership and responsibility and helps shift the culture from one of holding people accountable to a culture of being accountable Reliable Promising reduces rework defects and waste and increases productivity CHAPTER 26 Reliable Promising 151

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2 0 What In the context of Lean IPD a promise is a commitment and an agreement A reliable promise contains Customer Performer Timeframe Competency Mutually agreed upon Conditions of Satisfaction What makes a promise or commitment reliable Performer has the resources to deliver Performer has the ability to say no Performer has the time to do it Performer has the authority to agree to it Performer has the competence or access to necessary competence Performer has no hesitation about delivery Performer has planned to do it 3 0 When All work that is done is based in commitments If there is not a customer and a performer for each piece of work it should be questioned why the work is being done Reliable Promising and commitment making is every bit as relevant to a Lean project as it is to a Lean organization 152 Transforming Design and Construction A Framework for Change

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4 0 How Reliable Promising empowers performers to offer a conditional promise which leads to negotiation A conditional promise may be yes I can do that if Another option is to provide a counter offer It strengthens the network of commitments and clarifies the path forward Following the Basic Action Workflow model by Fernando Flores an act is actually two mutual promises one by the customer of what is being requested and one by the performer of what they will deliver PREPARATION NEGOTIATION Request of Offer Acceptance 2 mutual promises CUSTOMER Declaration of Satisfaction ACCEPTANCE CONDITIONS OF SATISFACTION TIME Report of Completion PERFORMER PERFORMANCE Following the Basic Action Workflow model by Fernando Flores an act is actually two mutual promises one by the customer of what is being requested and one by the performer of what they will deliver References Conversations For Action and Collected Essays Instilling a Culture of Commitment in Working Relationships Fernando Flores The Last Planner System Conversations that Design and Activate The Network of Commitments Gregory Howell and Hal Macomber CHAPTER 26 Reliable Promising 153

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27 CHAPTER CLUSTER GROUPS PROJECT IMPLEMENTATION TEAM 1 0 Why Building projects are complex in terms of systems that work together multiple companies that interact and multiple budgets integrated in the overall development budget Many decisions must be made when developing and delivering a project that meets all of the Conditions of Satisfaction CoS Cluster Groups break up that complexity into an environment of rapid prototyping of solutions and rapid learning through out Distributed Leadership It is unlikely that one or a few individuals can make all necessary decisions Volume of issues technical skills input needed code knowledge awareness of options and the ability to study the most appropriate solution would overwhelm a small team A Lean IPD project uses Cluster Groups to better manage this arduous task CHAPTER 27 Cluster Groups Project Implementation Team 155

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Cluster Groups break up that complexity into an environment of rapid prototyping of solutions and rapid learning through out Distributed Leadership The teams share crossfunctional knowledge for problem solving together they understand the ripple effect of decisions and can therefore make better informed decisions with less iteration The Cluster Groups come together in a Big Room environment to share and learn from other team members or clusters Cluster Groups are most often used as part of Target Value Design TVD Through the use of A3 thinking Choosing by Advantages and set based design these clusters can improve predictability while driving value to the Customer A single person or company should not design a solution alone without representation from other project participants Cluster Groups are powerful because they can get input from many other perspectives and thus benefit the project 2 0 What Cluster Groups are unique and specific to individual project needs Cluster Groups also change with the needs of the project They are not all intended to last the entire duration of a program but instead are centered around a body of work to be delivered Not all projects have Cluster Groups Small projects may be a Cluster Group in and of themselves The intent is to batch the work into manageable pieces so the work can progress smoothly and reliably Small projects may be able to manage this effort as one cluster overseeing all activity The number of Cluster Groups required for a project will depend on the project s Scope Size Complexity Constraints Risks Cluster Groups must be multi disciplinary Regardless of the topic of the Cluster Group it will typically be comprised of an owner rep an end user an architect designer a GC CM and a specialty trade contractor The size of the group should be manageable yet still comprise a broad representation of stakeholders Teams with high levels of trust allow one member to represent a multitude of stakeholders this arrangement helps reduce cluster size Individual team members must be empowered to make decisions on behalf of their company scope of work or area of influence They must also understand their boundaries of decision making to keep the teams right sized Each Cluster Group should have an estimator or person to report to the overall project budget 156 Transforming Design and Construction A Framework for Change

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Discipline Representative Discipline Representative CLUSTER Discipline Representative TEAM Discipline Representative Discipline Representative A single person or company should not design a solution alone without representation from other project participants Cluster Groups are powerful because they can get input from many other perspectives and thus benefit the project Discipline Representative Source HKS 3 0 How Clusters should be formed around whatever grouping is appropriate to the project Examples include Building system Department type Discernable chunk of structure or scope Subject matter supporting the CoS environment community culture etc The project team collaboratively forms the groups the groups must not be dictated by a single person or company Each Cluster Group defines the objectives and captures innovative ideas that it will bring to the project They take a deep dive into the body of work they were designated to form around In a TVD structure they will often respond to a particular budget goal as well All Cluster Group goals ideas and strategies need to be integrated into the Project Team Pull Plan This will ensure that the team makes decisions at the right time and that the effect of those decisions on other Cluster Groups and project teams is considered It s best when decision making A3 documents are used to define who leads the charge on a particular topic the date by which the decision must be made should be captured in the A3 as well The A3 documentation can also inform the rest of the project team about what the individual Cluster Group is working on All A3s should be accessible and visible to the project team CHAPTER 27 Cluster Groups Project Implementation Team 157

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Cluster Groups may find it appropriate to work separately from the larger team for various efforts Their focus of work could demand a location technology and intensity that happens outside the Big Room setting It is essential however that Cluster Groups interact regularly This intentional interaction is the reason for the Big Room to exist To facilitate this interaction the team may need to use techniques and tools such as Big Room Agenda Speed Pulling Purposeful scheduled time slots of interaction between Cluster Groups The Pull Plan informs what the Cluster Group will be working on the Cluster Group responds and informs the pull But the goal is to pull the work from the activities or decisions to be made not meet for the sake of meeting Parkinson s Law states Work expands so as to fill the time available for its completion That is not the intention of Cluster Groups Cluster Groups are cross functional teams that complete focused work based on a deliverable established by pull The use of Restropectives and Plus Delta can help inform the value of these work sessions The Cluster Group will evolve and even disband as a project progresses Group members may be added and deleted as the deliverables change If there are no remaining deliverables outlined on the pull for the Cluster Group then the group may have no further need to exist As a project enters construction phases and issues arise needing the expertise of multi disciplinary team members a Swarm can take place at the site of the work to deal with that singular issue Quick Reference Distributed Leadership 83 Conditions of Satisfaction 133 Big Room 209 158 Transforming Design and Construction A Framework for Change

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28 CHAPTER HAND OFF WORK PLANNING 1 0 Why Construction projects traditionally are made of multiple companies contracted individually to one general managing firm Each company typically comes to the project with independent and mutually exclusive goals which often results in poor coordination rework and incorrect work Hand off work planning can be used immediately to improve the reliability of the work plan for near term work It is a practical skill that can be used often throughout the life of the project Lean IPD project teams strive to create an environment where the construction process can more closely mirror a production environment This is accomplished through detailed planning done by those responsible for doing the work They are encouraged to have clear conversations about their work and specifically how they will hand it off to the follow on value adding process Teams identify and define standard work processes and outcomes and then improve upon those practices Using a Plan Do Check Act PDCA cycle is helpful in this regard and allows for continuous improvement CHAPTER 28 Hand Off Work Planning 159

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The central challenge of Lean IPD is cultural change This encompasses how the team thinks about the project their work how they behave how they interact with their fellow team members manage risk and how they react to and solve problems For most team members these behaviors and practices will be different from what they have experienced previously Most or all of these changes are required to effectively execute hand off work planning once learned they are transferrable to many other contexts of the Lean IPD work environment Through transformational Leadership and strong coaching and Facilitation in a Big Room environment a Lean IPD team will strive for transparency one single source of truth Last Planner engagement clear Conditions of Satisfaction and most importantly respect for people and deep trustbased relationships Hand off work planning can be used immediately to improve the reliability of the work plan for near term work It is a practical skill that can be used often throughout the life of the project Hand off work planning can be used at least weekly sometimes daily or sometimes multiple times per day It prepares the team to take on the more advanced Lean IPD concepts like Production System Design 2 0 What When performing hand off work planning project teams do the following Choose a milestone The milestone is near term and has a clear definition It should be chosen before the meeting is held and communicated in advance to the meeting participants If this is the first time many in the group have done hand off work planning any milestone can be chosen as long as it is one the participants are familiar with Get the Last Planners in the room A Last Planner is someone who has direct knowledge of the work that is going to be discussed He or she either performs that work or supervises those who do If last planners are not included or if there are few last planners in attendance the project can break down Project teams must know who to invite and make every effort to ensure they attend Attendance in person is key Last planners cannot attend via phone or virtual meeting Hand off work planning is an engaged multi dimensional fastmoving conversation that is intended to lead to personal commitments and agreements 160 Transforming Design and Construction A Framework for Change

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Write the commitments on sticky notes Each person should write his or her own commitment descriptions promise to perform Reliable Promising This increases accountability Define the milestone by asking the following questions What is a milestone How will the team know when the milestone is reached What deliverables must be created for this milestone An example of a milestone description that seems clear but is in fact unclear is building is watertight Does this mean that 100 of the building is watertight Or can it be all of the building except where the man hoist is Is it the last layer of the waterproofing or is it the entire skin in addition to the waterproofing elements Is it when the physical installation of the work is complete or is it when the GC has agreed that it is complete or is it when the inspector has agreed it is complete CHAPTER 28 Hand Off Work Planning 161

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This conversation is not optional It is critical It drives the rest of the meeting It is common and necessary to uncover differences misunderstandings and disagreements on this subject Determine the type of work needed to meet the milestone Work forwards forward pass or backwards backward pass Use sticky notes It is generally best to work backwards Pull Plan from the milestone However much can be achieved by working forward to the milestone then moving backward through the chain If team does a backward pass review the plan by moving forward step by step Rearrange the sticky notes as needed Repeat until the team agrees the steps of the work are in place and are all connected to the milestone When working backward ask Are you sure you have no other constraints Are you completely released to start work Look for language patterns like yes I m completely released I just need the final spec If final spec isn t in the plan add it When working forward ask Does this work release other work to start Sometimes the other work might be on a pathway not leading to your milestone but revealing it might lead to team review and uncover a hidden pathway to the milestone you are working on Write the commitments on sticky notes Each person should write his or her own commitment descriptions promise to perform Reliable Promising This increases accountability There can be resistance to commitments but teams must commit It is important to continuous flow of the project Make sure the commitments are sequenced Draw lines between the boxes Make sure it is clear how all boxes are connected and there is an arrowhead at one end of each line indicating the order of the commitments 162 Transforming Design and Construction A Framework for Change

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Encourage and determine complete descriptions of work including the name of the person and the duration of the commitment At the beginning it may be difficult to write complete descriptions and details can be added later By the end of the session all commitments need to be complete and connected to all related commitments Read all of the participant descriptions and consider the following Are the descriptions clear What is needed before each commitment can be met Is a piece of work missing What is needed to release the next commitment to start What is needed to allow this commitment to start For the Twitter minded Transparency SingleSourceOfTruth Conditions of Satisfaction ReliablePromising Facilitation Culture ChangingBehavior ScheduleRisk RiskManagement ProductionSystemDesign CriticalConversations HowToListen SmallBatches Is a commitment doing more than needed Is that other work needed now If so what follow on work does it release to start Is there a chain of work missing Maybe it simply supports a milestone not being planned out right now Note This process can lead naturally to cluster groups being formed to consider unknowns in the hand off work plan The team may not have the expertise to resolve the issue that needs study by another group If an issue is complex or off topic add the item to a parking lot list to be addressed at another session or by another group CHAPTER 28 Hand Off Work Planning 163

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Make sure commitments are assigned to people not companies It is a person who will do the work or be responsible for the work and he or she is the point of accountability Add durations to the commitments Try to limit durations of commitments Small batch workflow readily allows for improvement or correction Challenge any long duration commitments especially if the description is short or vague An ideal maximum duration is five days Reach consensus on the completed plan Assess the total duration Determine whether the milestone will be reached in a timely manner Conduct a Plus Delta on the meeting Perform execution follow up Encourage short cycle corrections and establishment of multiple conduits for communication Refer to the Last Planner System for a deeper understanding of how this hand off work planning can be measured to drive improvement Many have found this application to benefit from a coach or project integrator experienced in group facilitation Other Needs Supplies Characteristics of the workspace Big wall or white board Large sticky notes of many colors usually one color per company Marker pens for connecting the sticky notes Fine tip sharpies for writing on the sticky notes Renderings site plans site photographs cardboard models mechanical layouts floor plans as necessary 164 Transforming Design and Construction A Framework for Change

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29 CHAPTER DAILY HUDDLE Introduction When traditional project team members encounter obstacles as they work their natural inclination is to stop until they can seek input to help resolve the problem usually at the next team meeting This interrupts workflow and contributes to teams missing milestones and projects veering off track By contrast collaborative project teams have learned that the Daily Huddle is beneficial for synching on near term goals by verifying that work is progressing as promised and if not identifying resources to help immediately The Daily Huddle is not a problem solving or planning forum but a powerful means for the team to quickly surface and resolve issues CHAPTER 29 Daily Huddle 167

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1 0 Why The Daily Huddle provides a foundation for driving cultural change and encourages the project team to re center the Weekly Work Plan or Kanban Plan The meeting encourages accountability and daily collaboration as well as facilitates the acknowledgment and resolution of problems More specifically the Daily Huddle provides a venue for Coordinating actions for the day Continuing the planning conversation Keeping the network of commitments fresh and active Letting the team know the status of commitments and where help is needed Openly sharing concerns and risks Identifying constraints so they can be addressed Declaring breakdowns in real time Identifying opportunities to help each other and Fostering and building teamwork and a sense of shared responsibility The Daily Huddle is not a problem solving or planning forum but a powerful means for the team to quickly surface and resolve issues As a result the Daily Huddle reduces waste by aligning the project team each day The meeting encourages accountability and daily collaboration as well as facilitates the acknowledgment and resolution of problems 168 Transforming Design and Construction A Framework for Change

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When addressing the group participants should stand at the Weekly Work Plan or Kanban Board in order to maintain a high energy session 2 0 How The Daily Huddle should be brief well organized and led by a fixed or rotating facilitator The role of the facilitator is to keep the conversation flowing crisply and on track while ensuring the session is meeting the needs of the team The meetings can be held either in person or remotely dependent upon circumstances and should be held at a consistent time ideally at the beginning end or during a natural break in the day Additionally the huddles should be brief generally not exceeding 15 minutes However the period frequency of the meetings can be adjusted to meet the needs of the team and the project Participants should reference the Weekly Work Plan or Kanban Board and come prepared to address What commitments have you completed since our last check in What work will you complete by our next check in What are your constraints as well as help or resources needed CHAPTER 29 Daily Huddle 169

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What is the availability to the materials tools equipment and information you need to perform your work It is vital that the Daily Huddle format be posted in the area where the meeting occurs If the meeting is held via conference call the Work Plan or Kanban Board should be readily available digitally When addressing the group participants should stand at the Weekly Work Plan or Kanban Board in order to maintain a high energy session To improve engagement a record of attendance also can be maintained Urgent issues and questions requiring follow up or deeper conversation often surface during the Daily Huddle The facilitator should collect these issues in a Parking Lot or Bin List for rapid resolution Some teams have found it beneficial to require the resolution of all Bin List items within 24 hours This acknowledges concerns and maintains urgency without derailing the meeting 3 0 What The Daily Huddle is a structured meeting with the primary goal of coordinating promises and re centering the project team on the near term plan Weekly Work Plan or Kanban Board The meeting while informal follows a consistent format and is applicable at any level or phase of the project It encourages transparency accountability and positive peer pressure to perform and not disappoint the rest of the team Ideally the Daily Huddle should be an open forum that provides a voice to all participants and encourages them to engage with one another rather than report to a designated team leader 170 Transforming Design and Construction A Framework for Change

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References Daily Meeting Agile Alliance http guide agilealliance org guide daily html Daily Scrum Meeting Mountain Goat Software https www mountaingoatsoftware com agile scrum daily scrum It s Not Just Standing Up Patterns for Daily Standup Meetings Martin Fowler http martinfowler com articles itsNotJustStandingUp html 7 Mistakes during the Daily Stand up Meeting Scrum Alliance https www scrumalliance org community articles 2014 july 7 mistakes during the daily stand up meeting Daily Check in Session Successfully Coordinating Action with Stand ups CH2M Hill https drive google com file d 0B6L2W2S0G6RKa1NCT3ZGamdOR0k view usp sharing Quick Reference Visual Management 33 Respect for People 77 Hand Off Work Planning 159 CHAPTER 29 Daily Huddle 171

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30 CHAPTER PRODUCTION SYSTEM DESIGN Introduction Lean IPD project teams strive to create an environment where the construction process resembles a production environment This is accomplished through detailed planning done by those directly responsible for doing the work They are encouraged to have conversations about their work and specifically how they will hand it off to the next value creator Attempts are made to identify and define standard processes and outcomes and then improve upon those practices Using a Plan Do Check Act PDCA cycle is encouraged to offer flow predictability and an environment for continuous improvement Lean IPD project teams strive to create an environment where the construction process resembles a production environment CHAPTER 30 Production System Design 173

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As they begin to implement the Last Planner System on their projects project teams often struggle with how to use the system within the context of their existing and conventionally constructed project schedules Those schedules are generally overly detailed make large assumptions and often prematurely attempt to predict the future in great detail Additionally it is generally assumed that scheduled activities will happen as expected months or often years after those schedules are first created Production System Design is fundamental to creating Milestone and Phase Plans that are better aligned with the principles of Lean IPD Creating Milestone and Phase Plans helps the team achieve project flow and is a step that is often missed when teams begin to implement the Last Planner System for Production Control Production System Design is the Plan part of the PDCA process It is an iterative analytical process that recognizes the dynamic nature of project plans It is done collaboratively with the key performers who are directly responsible for the various phases of the project It should be created for the specific project 1 0 Why It identifies the main phases of work areas of standard activities within each of the phases and areas of potential variation It enlists input from the people directly involved in the work to identify critical handoffs and interface points between the phases It provides the framework for implementing strategies to reduce variation It identifies the main phases of work and lead times to start Phase Planning to achieve flow It sets the pace for the work to identify what should be done week after week to maintain flow It provides the starting point for Make Ready Planning to improve reliability Production System Design is the Plan part of the PDCA process 2 0 When Teams begin this process at the start of the project to build a conceptual framework for the production system Teams identify the main project phases then revisit and 174 Transforming Design and Construction A Framework for Change

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refine those phases as the work evolves to reflect the team s best understanding of the remaining work and the capabilities of the performers Production System Design should be done at the project level to define the overall supply chain the main project phases long lead time items and location breakdown structure It should be done at the Phase Level to define standard activities and their preferred sequence within each of the phases Teams should identify potential bottleneck trades before finalizing buy out decisions 3 0 How Teams should Collaborate with the people directly responsible for the work Use PDCA approach to continually improve the details of the production system Begin by identifying the main phases of work at the project level A phase defines a group of activities of the same nature that releases a group of activities of another nature For example plumbing and electrical are not phases but rough in and finishes are Clearly identify the interface points between the phases of work and the requirements of the elements of the systems in each phase For example it is important to consider which areas in the building are served by a particular air handler in order to finalize the sequence of work within the floors in the building and align it with functional testing this is key for proper location breakdown structure design Identify which phases are unique and which phases can be defined by standard activities Identify the interface points between unique and non unique phases Enlist input from the key performers of each phase to identify the standard activities and identify the areas in the project where the standard activities will occur Use visual tools to illustrate the results diagrams and flow maps Review the standard activities with the key performers and inspectors and identify opportunities for built in quality Identify the areas of the project when unique phases occur and identify the interfaces to phases of standard activities CHAPTER 30 Production System Design 175

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Identify the strategies that will be used to set the pace of the work and achieve flow For example the team may choose to fix the durations of standard activities and vary the crew sizes to maintain flow this is known as Takt Time Strategy Or the team may fix the locations and allow the durations to vary based on the production rates of the crews and the quantity of the work this is known as the Location Based Management System strategy Or the team may use a combination of the two strategies The goal is to achieve flow and strike the right balance between flow and crew efficiency Fill the details for the supply chain for each of the standard activities Validate the results with each key performer responsible for standard activities This includes the process to design coordinate detail procure fabricate and deliver each of the systems defined by the standard activities in each batch Adjust your Production System Design accordingly Use this to begin the process of Make Ready Planning or Lookahead Planning to identify constraints prioritize the constraints and to incorporate the constraints into the weekly and daily workplans Follow the Last Planner System processes of Weekly Work Planning Daily Commitment Management Huddles and Frequent Lessons Learned Use the outcomes of those processes to inform and improve the Production System Design References Koskela L Howell G 2002 The Underlying Theory of Project Management is Obsolete Project Management Institute 2002 Lamb Eric 2013 How to Fix a Broken Scheduling System ENR September 30 2013 Sepp nen O Ballard G and Pesonen S 2010 The Combination of Last Planner System and Location Based Management System Lean Construction Journal 6 1 43 54 2010 issue Kenley R and Sepp nen O 2010 Location based Management for Construction Planning Scheduling and Control Spon Press London and New York Sepp nen O Evinger J Mouflard C 2014 Effects of the Location Based Management System on Production Rates and Productivity Construction Management and Economics DOI 10 1080 01446193 2013 853881 Sepp nen O 2014 A Comparison of takt time and LBMS planning methods Proceedings of the 22nd Annual Conference of the International Group for Lean Construction Oslo Norway June 25th June 27th 2014 176 Transforming Design and Construction A Framework for Change

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31 CHAPTER CONTINUOUS IMPROVEMENT KAIZEN STAIRWAY Introduction The construction industry has seen an erosion of efficiency with limited improvement compared to other industries over the past 50 years The industry has created silos of various supply chain members introducing significant waste to the system Individual designers craftsmen managers and suppliers have been isolated and directed to provide only what they have been told and little has been asked of them outside the realm of their transactional contract obligation Integrated collaborative projects are focusing on the elimination of waste as a means of driving improved value to the process These teams invite all participants to contribute to the value proposition Some contracts provide for the sharing of that value increase Lean projects specifically focus on a process of Continuous Improvement CHAPTER 31 Continuous Improvement Kaizen Stairway 179

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1 0 Why There is a belief held by many in the construction industry that improvement to the metaphorical legs of the time cost quality and safety stool cannot take place simultaneously Instead they believe that one should be sacrificed to improve the others In other words to improve the schedule and budget one must sacrifice the overall quality of the work The Lean approach directly challenges this belief and encourages a project team to realize that all metrics can improve simultaneously The Kaizen Stairway Figure 1 provides a systematic framework to help Lean managers think more precisely about the specific steps needed to accomplish simultaneous continuous improvement 2 0 How In order for improvement to take place the current state should first be benchmarked The team Value Stream Maps its current state and defines and collects metrics with respect to time cost quality safety and morale This process documents the current state performance and helps the team identify initial opportunities for the elimination of waste A facilitator may then ask key team members to brainstorm Plus Delta items Figure 2 Delta items challenge the team to define specific problems that should be resolved in order for the project team to take its first step up the Continuous Improvement Stairway The facilitator can then engage relevant stakeholders to help populate the ribs of an Ishikawa Fishbone cause and effect Diagram Figure 3 This helps the team graphically identify and capture possible causes that may be leading to an undesirable effect The key stakeholders then Roughly quantify and rank causes on a Pareto Chart histogram Figure 4 so it becomes clear that causes with the greatest impact on the desired outcome need to be tackled first Identify critical causes and subject these to a 5 Whys analysis process Figure 5 This process of repeatedly asking Why assists team members with drilling down to a root cause so that any proposed countermeasure could permanently resolve a problem 180 Transforming Design and Construction A Framework for Change

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Deploy critical countermeasures into a PDCA Plan Do Check Adjust Cycle Figure 6 also called a First Run Study Collect metrics to see whether or not the implemented root cause countermeasure results in the desired improvement If the deployed countermeasure results in the desired improvement the process becomes standardized within the organization until it is clear that team members have a firm grasp on the improved work process and the process can begin again The Continuous Improvement cycles are iterative in the sense that every future state becomes a new current state which then begins the search for the next future state The entire Continuous Improvement process should be performed within a culture of respect This is important because the search for enhanced efficiency without the involvement of team members runs contrary to the cultural mindset necessary to deliver Lean results In the more detailed version of the Kaizen Stairway Figure 7 there is an overlay of two gray bars that shows some of the observed outcomes if improvements are truly Lean The upper gray bar represents what we would expect to observe on a line ofbalance schedule where a previously disjointed and conflicted schedule of activities starts to flow The lower gray bar represents what we would expect to observe on a coordinate system where the horizontal axis represents cost and the vertical access represents importance to the owner If the process improvements implemented truly offer improved value to the owner we should observe a taller importance bar for the same amount of cost the same sized importance bar for lower cost or greater importance for less cost Again the team will know if their interventions are truly Lean because the five metrics of time cost quality safety and morale should benefit the overall project long term right vertical axis and waste that was initially embedded in the system should become increasingly replaced with opportunities to generate value lower horizontal axis CHAPTER 31 Continuous Improvement Kaizen Stairway 181

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Maximum Maximum Maximum Minimum Minimum Collective Kaizen and Standardization Future state n 1 Future state n Current state n Future state 4 Current state 4 Future state 3 MORALE SAFETY QUALITY Future state 2 COST TIME Current state 3 Current state 2 Current state 1 CULTURE of RESPECT Minimum Minimum Maximum Maximum VALUE WASTE Maximum COST of CAPITAL TIME OAEC Owner Architect Engineer Constructor collaborative Figure 1 The Kaizen Stairway Adapted from Rybkowski Z K Abdelhamid T and Forbes L 2013 On the back of a cocktail napkin An exploration of graphic definitions of lean construction Proceedings of the 21th Annual Conference for the International Group for Lean Construction July 31 August 2 2013 Fortaleza Brazil 83 92 Figure 2 Plus Delta Chart 182 Transforming Design and Construction A Framework for Change

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C C C AU SE AU AU SE E C SE A C AU SE C AU SE C AU SE EFFECT B D F Figure 3 Ishikawa Fishbone Cause and Effect Diagram Figure 4 Pareto Chart CORRESPONDING LEVEL OF COUNTERMEASURE RESULT IF TAKE ACTION AT THIS POINT Site is too crowded with material inventory Rearrange materials on site Short term solution No one is aware of material management being a problem Tell them that this is a problem Laborers are used to solving problem as a Work Around Ask laborers to perform properly Management does not ask laborers for their opinion Encourage management to ask laborers their opinion Management is not aware that collaboration benefits everyone Give them appropriate training to help them percieve the benefits of collaboration WHY WHY WHY WHY WHY LEVEL OF PROBLEM Productivity on site is low Mid term Solution Long term soluiton Figure 5 Example of 5 Whys Root Cause Analysis and drill down to arrive at permanent countermeasure CHAPTER 31 Continuous Improvement Kaizen Stairway 183

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32 CHAPTER ONBOARDING TEAM MEMBERS 1 0 Why In a project based industry it is common for groups and individuals who have never worked together to come together for a program or project It is shortsighted to believe these individuals will immediately know how to work together and understand the project s Conditions of Satisfaction CoS Onboarding is not a one time event it is a continuous process where concepts and culture are always reinforced A Lean IPD approach to project delivery as described in the Lean Construction Overview is a significant departure from traditional delivery Lean IPD changes the culture of project delivery by using collaborative tools Projects are relationship based business deals focus on common rather than individual goals By eliminating Waste Lean IPD teams provide Value to the Customer CHAPTER 32 Onboarding Team Members 187

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Onboarding provides a way for team members to reach common levels of learning and project understanding as new team members are added to a project Onboarding ensures that a team s and organization s cultural behavioral and procedural environments are not disrupted 2 0 What Onboarding also known as organizational socialization is a way for new employees to quickly acquire the necessary knowledge skills and behaviors to become effective organizational members The process also ensures that team members quickly learn these traits to become effective sooner thus helping to create a High Performing Team 3 0 How Onboarding begins before a new project is initiated or before a new team member joins an organization or project Existing project leaders who are accountable for culture and behavior should conduct onboarding classes to emphasize the importance of change and the processes that will be used to drive that change All project leaders should take turns leading these classes It is imperative that all team members are onboarded and the content administered should be scaled and tailored to the role of each team member Involving team members in learn by doing activities as part of the onboarding process immediately sets the tone for desired collaborative behaviors builds trust and camaraderie and transfers ownership of the Lean IPD process to all participants Active participation should be interwoven with passive learning to keep the interest alive Simulations and small group activities role playing or problem solving sessions both teach and engage learners Onboarding is not a one time event it is a continuous process where concepts and culture are always reinforced The better this process is incorporated into the project life the better the results will be It is not uncommon for a Breakdown to occur if a member firm or individual has not taken the onboarding class 188 Transforming Design and Construction A Framework for Change

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When leading an onboarding class team leaders should Clearly explain the Conditions of Satisfaction or guiding principles Explain the imminent changes driven by Lean IPD Explain the WIIIFMs What is in it for me Gather risks and concerns and address them Introduce the class to Lean IPD concepts Explain the expectations about Lean culture Describe the expectations about behavior and explain why they are important to Lean culture Explain the need to listen to the customer and ensure they understand the work that they will perform Explain the Business Deal or any other unique financial arrangements attached to the organization or project Introduce Lean tools in the context of Lean culture Provide basic project or organizational information Provide basic information that team members will need to perform their roles Provide contact information and resources that team members will need to perform their roles Assess readiness at the end of the initial onboarding class CHAPTER 32 Onboarding Team Members 189

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33 CHAPTER GO TO THE WORK Introduction Too often we think we understand all aspects of a project but without physical observation we can actually miss a lot Going to the Work is not simply about quality control or ensuring that a project is on track it helps us understand the intricacies of how the work gets done in order to identify waste and improve performance Going to the Work called Going to the Gemba in original Toyota Production System language is crucial to improving overall quality control and eliminating waste in the workflow process 1 0 Why Going to the Work called Going to the Gemba in original Toyota Production System language is crucial to improving overall quality control and eliminating waste in the workflow process It helps participants identify ways to standardize processes and manage expectations from a first hand perspective rather than second or third hand CHAPTER 33 Go To The Work 191

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Other benefits include Gathering valuable insights to inform kitting batching and sequencing Improving the planning process Supporting mentoring training and cross training efforts Improving safety Clarifying the scope of the project components or task Empowering participants to understand the process including cross trades and suggest ways to improve it Offering a venue to show respect for designers technicians and craftsmen by asking for their input and offering ways to improve their environment or remove constraints and Realizing instant improvements to the process 2 0 How Experienced practitioners employ a variety of methods and tools to assist them in the Go to the Work process One of the most well known is the Ohno Circle which involves observing a project for an established period of time to gain a full understanding of the entire process Additional methods and tools include Video Studies Used for processes that are too long or impractical to observe in real time Instead the process is taped and watched as a video The videos can be used later as training aids for continuous improvement First Run Study Often the first step employed by project leaders to gain a sense of work movements The goal is to help standardize processes and mark a baseline for continuous improvement Skilled Craft Lunches Provides an intimate setting to search for issues and ideas from trades and other partners Spaghetti Diagrams Involves drawing a pencil sketch of the movement associated with a process If overly complicated then the process is likely inefficient and can be improved 192 Transforming Design and Construction A Framework for Change

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RFID Radio Frequency Identification A form of location based tracking used to track the movements of materials equipment or personnel Mockups Can help establish an end product standard and prove its functionality for end user stakeholders Any investment in mockups should be in proportion to the benefits In some cases a virtual mockup may be sufficient However it is worth noting that virtual mockups will not always yield the practical insights provided by a physical mock up The awareness gained from Going to the Work serves to educate the team on how work is performed at every stage of the process and leads to productive change Shown Notes from observations on processes in an Emergency Department CHAPTER 33 Go To The Work 193

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Prototyping The rapid development of a prototype used to prove or disprove ideas While observing the work everyone should understand the goal of the activity which is to make improvements in a collaborative and constructive manner The purpose is not to be punitive Respect for People but should be based upon a genuine desire to work together for better outcomes 3 0 What Going to the Work refers to the act of observing a project s moving parts from administrative tasks to specific construction processes It is directly related to the principle of going slow to go fast and Continual Reflection The awareness gained from these observations serves to educate the team on how work is performed at every stage of the process and leads to productive change Information gathered can also be used with other tools such as Value Stream Mapping A3s PDCA and Swarming Everyone involved in a project can benefit from Going to the Work from owner representatives project design leaders project managers and leadership to cross trades and less experienced practitioners References Gemba Walks Jim Womack Quick Reference Respect for People 77 Continuous Reflection 65 Value Stream Mapping 213 194 Transforming Design and Construction A Framework for Change

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34 CHAPTER COLLABORATIVE BUDGET MANAGEMENT Introduction While traditional project teams have sufficient budget management skills typically the focus is on individual participants rather than the entire project Rarely are the details of these outcomes shared with team members beyond those individual firms This silo method of reporting can lead to surprises down the road as firms review their Cost to Complete CTC at different rates often not identifying overruns until late in the project These surprises harm team morale ruin relationships and cause significant discontent among partners Participants assigned to a budget cluster should understand the entirety of the document and all budget data should be defined in common language and not be trade or partner specific CHAPTER 34 Collaborative Budget Management 195

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Conversely collaborative teams are encouraged and sometimes contractually required to share this data frequently and openly to help understand the overall outcome This is a challenge for many partners as systems and methods vary widely for cost accounting Although sharing this data requires a serious leap of faith Collaborative Budget Management is an essential step toward managing a project s CTC 1 0 Why A Collaborative Budget Management Process is essential for accurately tracking and projecting a project s CTC Unfortunately many in the industry do not properly manage the process or have an unreasonable approach to managing CTC This frequently leads to unplanned cost overruns Cost Forecasting as well as Risk and Opportunity data are key components to Budget Management and are necessary for projecting CTC A proactive Collaborative Budget Management Process creates a reliable barometer for participants to monitor profits and outcomes throughout the duration of the project The principal advantages of Collaborative Budget Management include Creates a platform for open honest and frank discussions about the challenges opportunities and progress of a project Promotes CTC awareness Encourages transparency Discourages scope hoarding or avoidance Enables shared procurement Enables shared consolidated scope Facilitates efficiency discussions Pinpoints cross trade disruptions Engenders a shared understanding of Current Working Estimate CWE Encourages shared goals shared risk reward knowledge 196 Transforming Design and Construction A Framework for Change

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2 0 How During the Budget Management Process the discussion should encourage ownership of budget components as well as challenge participants and transaction detail Participants assigned to a budget cluster should understand the entirety of the document and all budget data should be defined in common language and not be trade or partner specific The Budget Management process should not focus only on actual cost but should reach a determination as to why actual cost differs from the original estimate Additionally the team should have an understanding of the Added Scope vs Team Target which is determined by asking probing questions such as What specific scope drove the change in cost Why did the scope change Did we challenge the scope change in person With whom CHAPTER 34 Collaborative Budget Management 197

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What was our basis for challenging the scope Was the decision to add the scope a whim Should we have known It is essential that there is a solid handoff from the person managing the cost during development to the person handling construction cost details and forecasting i e a solid handoff from Cost Forecasting in Early Project Phases to Collaborative Budget Management Participants should also define the leading indicators necessary to determine Cost to Complete If errors are pinpointed the project team should stop and make adjustments via a Root Cause Analysis Other important attributes of Collaborative Budget Management Bad news should be reported immediately and not by proxy All costs should be identified and shared with all stakeholders along with cost estimates and target information There should be one point of aggregation The process should encourage open honest and regular sharing All partners should participate and come prepared with data There should be accurate monthly cost data in real numbers The team should develop a consolidated project cost and make those goals obvious 3 0 What Collaborative Budget Management ensures that project teams are accurately reporting the collective health of a project It is a method for both design and construction to ascertain their Cost to Complete and should be perceived as a management not accounting tool While Cost Forecasting in Early Project Phases focuses on time and materials on the front end of a project Collaborative Budget Management focuses on costs through the end of the project In fact Burn Rate and Risk and Opportunity data from the early development stages should flow into the Budget Management process 198 Transforming Design and Construction A Framework for Change

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Necessary components of effective Budget Management include A consolidated shared single spreadsheet to encourage transparency Detailed monthly transaction details necessary via a transaction register to track scope and dollars for innovation constructability and integration of the team Risk Opportunity Log to provide a path back to the budget and to get the project back to target Graphical output for visual reference Established targets provided to all participants Benchmarks and A Budget Champion to collect collate and present the documents although they are not necessarily responsible for the data The Budget Management process should not focus only on actual cost but should reach a determination as to why actual cost differs from the original estimate Additionally the process should push for ownership and drive accountability Ultimately the Budget Management process provides a good way to tie directly into the Team Health Dashboard Quick Reference Cost Forecasting in Early Project Phases 53 Risk and Opportunity Register 95 Visual Management and Communication 33 CHAPTER 34 Collaborative Budget Management 199

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35 CHAPTER PLUS DELTA 1 0 Why A primary pillar of a Lean culture is Continuous Improvement One very effective way to strive for this is through Retrospection Plus Delta is a quick simple retrospective to improve meetings planning sessions or repetitive activities By using Plus Delta teams can continuously improve meetings or activities and show respect for people by discussing the value of or ability to improve the time spent on events Using this practice appropriately will help develop and sustain the Lean culture Over time participants will ideally develop a regular practice of making timely assessments and adjustments Plus Delta is a quick simple retrospective to improve meetings planning sessions or repetitive activities 2 0 When Plus Deltas are typically done in last 10 minutes of a meeting or activity Projects and organizations that really look to maximize their learning from the practice also use it mid way through a longer meeting or work session It can be particularly helpful as a coaching tool when a meeting is going off track it will help recalibrate the team around the meeting s objective and potentially help them identify a new objective CHAPTER 35 Plus Delta 201

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3 0 How Typically the facilitator does the following 1 Plan 10 minutes in the agenda for the Plus Delta Make sure the time slot doesn t get used up by another topic This is not something to be rushed and completed for the sake of completion Attendees may at first be unwilling to appear to criticize the meeting They may be afraid to participate The facilitator should expect to encourage participation until the practice becomes commonplace 2 Explain to the group every time what a plus delta is a Plus what brought value and how does the team repeat it b Delta what can the team change or add to bring more value How can the team do better c The team should focus on the process of each particular meeting rather than focusing on people The facilitator should be prepared to return to emphasizing the objectives of the meeting and how to better achieve these objectives 3 Draw a line down the middle of a flip chart or white board label the top with Plus and Delta 4 Ask the team for pluses and deltas in action phrase format They should start their comment by stating whether it is a Plus or a Delta a Again all comments should be discussed in action format If someone says There was good conversation as a plus ask What action occurred to allow that to happen If someone says we had too many sidebar conversations ask What action can we take to prevent that next time Try to get to the root cause so the appropriate countermeasure can be determined b This may take some probing Some teams go around the table so that everyone provides a plus and a delta others let the group organically respond If the room remains quiet wait for a few minutes You may eventually need to call on some participants to get the exercise started c Encourage both deltas and pluses The intent is to both improve and sustain what is working well d Don t let people off the hook Encourage all to speak up Validate comments with the group to ensure value to most before helping define the action e Ask in terms of Who has another plus or delta or What else until it is time 202 Transforming Design and Construction A Framework for Change

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The facilitator should expect to encourage participation until the practice becomes commonplace to close the session Then shift the question to Is there anything else f Capture these actions on the flip chart If an action has too many words or is not easy to write ask the person who said it to rephrase it in a few words Translating is not recommended as often the intent is missed g Ask for owners of each action along with a commitment date It is O K to decide not to take action h At the beginning of the next meeting review the status of the actions from the prior Plus Delta Helpful facilitation points No junk words allowed If someone says the meeting was too long ask them to define too long or to rephrase the statement into a recommended improvement For example We should meet for 45 minutes If a participant found nothing to be of value in the meeting and has no improvements to offer ask that participant if he really needed to attend What action can be taken for the next meeting to ensure the right participants are there at the right time CHAPTER 35 Plus Delta 203

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Everything brought up is fair game Do not discount anyone s pluses or deltas Discounting feedback can prevent others from speaking up Anything brought up that is completely off topic should then be captured in a Parking Lot Pay attention to the mood of the group The group must be open and feel safe to speak up Ensure your application is appropriate for the environment For very large groups like conferences a technical application may be helpful Generally more value comes from the group discussing these together Set the goal of not having the same delta from one meeting to the next Having the same delta means the action was not implemented the first time This process can become stale and not add value if not facilitated as described above There may come a time when the team agrees the meetings are high performing and do not need a Plus Delta However if the meeting value becomes suspect begin the practice again perhaps in a more intentional way to bring the value back Meetings tend to become habit the need for the meetings change with time the length of the meeting may need to change or any number of factors may alter the value proposition The Plus Delta process can help the change occur as needed Quick Reference Facilitation 57 High Performing Teams 113 Continuous Improvement 179 204 Transforming Design and Construction A Framework for Change

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36 CHAPTER AGENDAS 1 0 Why Lean IPD teams are encouraged to work in groups not silos This reduces rework by incorporating the needs of many stakeholders before a solution set is presented or moves forward Though this way of working seems to require many participants attending many meetings it ultimately reduces the total time spent in meetings Having an effective agenda respects the participants time and the value they add to the subject matter Good agendas effectively move work forward by aligning participants with objective outcomes Collaboratively built agendas support the development of a Lean culture It is equally important for the agenda to be well facilitate Good agendas effectively move work forward by aligning participants with objective outcomes CHAPTER 36 Agendas 205

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2 0 When Prepare agendas for all meetings sessions and group events where three or more people are involved Agendas can be used for singular subject matter situations and can support the weekly plan for co located teams and Big Rooms 3 0 How Preparation Develop the agenda collaboratively Involve all participants Prepare the agenda at the end of a recurring session for the next session Another option is to prepare the agenda earlier in the recurring session particularly if attendance drops off or participation wanes during the meeting This is a critical step Publish or post the agenda well before the session meets This advance posting allows participants to prepare and also allows others to participate if they feel they will add value Elements of the Agenda Determine the intention and type of session planning decision making work etc Identify the clear expected outcomes to advance the work for each agenda item Identify the customer s of the outcome of each item session and align the expected outcome with their expectations Determine the necessary participants based on their stake in the outcome their input on the subject matter and their empowerment to make decisions When inviting participants be mindful of the time and other costs they must devote to the meeting Optimize the amount of time needed to drive to the expected outcome while being respectful of participants time It is acceptable to include time buffers and flex time but be transparent about their inclusion and only use them if needed End items or sessions early if the outcome is reached early 206 Transforming Design and Construction A Framework for Change

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Use visual cues such as color coding by type of session visual timeframes etc when appropriate to provide clarity Be mindful of participant s constraints in organizing agenda items Be mindful of participants time constraints when scheduling back to back sessions Open the session with a review of previous plus deltas for a recurring session When appropriate lead with Hot Topics Allow for adjustment to the agenda if needed and ensure that the group meets consensus Leave time on the agenda to develop the next agenda for a recurring session Include time for plus deltas Tips for Building an Agenda Identify the facilitator of the overall agenda and individual agenda items Use visual cues such as color coding by type of session visual timeframes etc when appropriate to provide clarity Identify participants CHAPTER 36 Agendas 207

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Include contact information location virtual connectivity instructions etc for venue s Plan to have a Parking Lot to assign actions and owners when off subject topics arise to avoid derailing the session Be prepared to build a Commitment Log for Action Items Consider the manner in which output of session will be shared For example determine whether minutes add value Resources Read this Before Our Next Meeting Al Pittampalli Death by Meeting A Leadership Fable About Solving the Most Painful Problem in Business Patrick Lencioni Effective Big Room Agenda Inside Out Consulting Kristin Hill Quick Reference Visual Management 33 Respect for People 77 Plus Delta 201 208 Transforming Design and Construction A Framework for Change

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37 CHAPTER THE MINDSET OF AN EFFECTIVE BIG ROOM 1 0 Why An effective Big Room supports cross functional team collaboration by advancing work and bringing the larger team up to speed on the activities of other groups or individuals It allows teams to understand their impact across clusters or work groups The Big Room also provides teams with the time to discuss project wide concerns such as budgets hot topics or global changes The term Big Room refers more to the behaviors and actions of the team than the physical space The Big Room is more than co location of people it is about collaborative behavior and the work it produces The Big Room is more than co location of people it is about collaborative behavior and the work it produces CHAPTER 37 The Mindset of an Effective Big Room 209

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2 0 When The behaviors and activities of the Big Room environment should begin as early in the project as possible even if the whole team is not yet formed The frequency of Big Room sessions varies from project to project and within different phases of the project The team must therefore continuously determine the right frequency and duration of sessions For example a half day per week may be appropriate for a very small project A complete co location might be suitable for other situations Again the demands of each project will determine the frequency duration and location Over the course of the project the key participants in the Big Room should and will change according to the type of work being produced and the type of team members who add value to each phase of the project It is important that the team include the right people at the right time having the right information to do the right work It is important to discuss regularly this value proposition Along with smaller monthly changes the entire nature of the Big Room will change several times throughout the project life Although forming a Big Room requires a significant investment of time and money the Big Room adds value to the project and drives down overall project cost 210 Transforming Design and Construction A Framework for Change

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3 0 How The Big Room is about fostering behaviors that lead to high levels of collaboration and thus to High Performing Teams Although forming a Big Room requires a significant investment of time and money when conducted well the Big Room adds value to the project and drives down the overall project cost Teams rapidly advance work in a relatively short amount of time with less rework because they have the collective brainpower in the room working together Having a well established effectively facilitated agenda is crucial to a Big Room s productivity and efficiency The team should collaboratively create the agenda well in advance of the Big Room session This ensures that all team members are prepared to advance the work A good agenda has an expected outcome for the agenda items timeframes and required key participants While it is important to have an effective agenda it is equally important to have it be well facilitated Potential Big Room Venues Co Located Participants continuously located together with continuous collaboration Recurring Participants meet in person on a regularly scheduled recurring basis Hybrid Combination of in person and virtual attendance by select participants Quick Reference Cluster Groups 155 High Performing Teams 113 Agendas 205 CHAPTER 37 The Mindset of an Effective Big Room 211

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38 CHAPTER VALUE STREAM MAPPING Introduction Traditional projects typically are managed by evaluating and optimizing individual tasks or small sets of work with a single idea or a few individual ideas of how best to perform the entirety of the work This often leads to inefficiency because the approach doesn t represent all of the details or knowledge about the work Collaborative teams are encouraged to evaluate the entirety of the value stream map the process consider the value of each step and optimize the process through Value Stream Mapping Value Stream Mapping is best used for mapping the flow of value for processes performed multiple times It is not to be confused with pull planning process mapping or hand off work planning which typically are used for mapping a pathway of work and decisions to get to a particular endpoint Value Stream Mapping is best used for mapping the flow of value for processes performed multiple times CHAPTER 38 Value Stream Mapping 213

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1 0 Why A Value Stream Map VSM is a tool that helps individuals visually see and understand a given process rather than simply looking at results This is vital because understanding the current state of a process is integral to identifying and removing waste A VSM enables people to see the flow of value Customer Value Added vs Business Value Added vs Non Value Added as well as the percentages of each in the process Non Value Added components tend to creep into a process over time and by understanding the process a project team is better able to design a solution that optimizes functionality and eliminates waste Additionally a VSM Identifies opportunities for process improvement Identifies pinch points and helps level the workflow to optimize use of resources Encourages continuous improvement philosophy Enables cultural change by allowing people to identify and improve the process Provides a great mentoring tool and Helps drive toward a goal 2 0 How As a critical first step in the development of a VSM it is important to accurately assess and gain consensus regarding the current state of the process This requires input from all who actually participate or use the system process Systems often are loaded with non value added steps therefore it is valuable to assess the current state of the process The creation of the VSM should begin with the end in mind be customer focused and be completed by someone who is close to the work Ultimately the VSM will lead to quick wins or just do its but inevitably will need a deeper dive to solve the larger issues in the process such as A3 thinking and Root Cause Analysis The process does not necessarily require technology 214 Transforming Design and Construction A Framework for Change

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NICU Current State Value Stream Map Main Campus Urology Circumcisions 40 50 of Total Patients Chaplain Services Pharmacy Total doses 1 846 enc 2010 90 228 11 baptisms 179 4 doses pt 35 deaths 2011 109 426 75 bed 200 1 doses pt 25 private Social Services 2011 Respiratory Care 64 unique cs 82 contact mn FTE 1 5 15 6 dy 02 30 See below Care Management And Discharge Preparation Audiology 2011 716 96 100 x 1 DME 22 Home Care 66 ___ x 2 FTE 1 0 RADIOLOGY 2011 In Radiology 0 8 adm 2 6 adm 445 Total 1 404 Total Delivery x 2 day LEGEND Housed Within NICU Facilities Within NICU Personnel Only RNs 110 9 FTE 2011 284 Infant Therapy OT PT Speech Nutrition Services 100 screen 68 of orders are 100 wkly review Between 7am 4pm 30 lactation trays day Palliative Care Consults Lactation 70 of all pts 2010 2011 80 2010 33 cases 24 pts visits FTE 1 0 Deaths 27 daily EPIC June 1 2012 Surgery Less than 1 of NICU Patients enter via ED 2010 136 patients 27 Surgeries 272 Cardiac 53 21 were PDAs 2011 128 patients 23 Distance 178 ft Admission To Unit 1 floor Portal of Entry Air Transport 2010 62 10 2011 78 10 162 Discharges FTE 2 0 RN 4 189 ventilator days or 11 5 patients on a ventilator day PT 10 5 min 73 between 1pm 6pm 1 0 MD NP 2011 data FTE 1 5 RN 1 0 Therap 13 9 of patients were on a ventilator Lactation Counselor 0 8 LPN 5 1 FTE 22 Required DME Multiple Births in 2011 Average Direct Care FTE Per Shift 26 4 floors 2010 2011 Twins 75 69 Triplets 12 5 Quads 0 0 Qunits 2 12 mins 5 5 2011 Over Capacity 73 days when at least one shift was over the bed capacity of 59 Average Length of Stay 2011 25 3 3 06 stdv 2010 25 6 days Telemetry 66 Required CHCG visit Capacity 16 beds 15 Required Ext Nsg Care Usage TBD Total screened for need 716 0 LT Ave LOS 25 3 days Length of Stay Groupings Surgeries 211 Cardiac 26 11 PDAs 12 100 move x 1 30 on some type of o2 therapy Distance 299 ft Case Manager 2 0 FTE Discharge 2010 data 9 5 on vapotherm therapy FTE 1 0 RN Clerical 9 6 FTE Move to Second Position in NICU Neonatal Intensive Care PT 6 minutes Time to Unit Techs 3 3 FTE used bedside Deaths 30 FTE 1 0 RN Clinical Coor 8 1 FTE Opthalmology 100 screened Dedicated Rm Not 2011 58 cases 6 240 per year Time to Unit 2 12 NNPs 13 0 FTE Manager 1 0 FTE Echocardiogram In NICU 2011 670 90 Physicians 8 0 FTE Fellows 0 19 9 lab orders day SMS Central Computer System Portal of Entry Ground Transport 2010 577 90 Staff Count Residents 2 3 Laboratory Portable Imaging 50 stay 14 days 10 stay 15 21 days 22 stay 22 63 days 14 stay than 64 days Acute vs SubAcute Days Acute 8 777 46 SubAcute 10 302 54 ECMO 2010 2 procedures 2011 1 procedure In Unit Procedures 2011 Pulse oximetery 13 072 events Aerosol by Nursing 238 events Central Venous Cath 190 Blood Transfusions 187 events Straight Bladder Cath 77 events Enterostomal Therapy 17 events Indwelling Catheter 20 events Chest Tube Placement 9 events Lumbar Puncture 16 events Exchange Transfusion 1 event Epidural Infusion 9 events Non Value Added components tend to creep into a process over time and by understanding the process a project team is better able to design a solution that optimizes functionality and eliminates waste Stakeholders in the VSM development include A facilitator Participants closest to the work and Customer s of the work product An example VSM exercise could follow these steps 1 Assemble a team of stakeholders 2 Identify a process to study 3 Go and see the process see Go to the Work and collect actual data 4 Avoid assumptions about the process 5 Map the process visually to establish the current state CHAPTER 38 Value Stream Mapping 215

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6 Identify and discuss opportunities for improvement 7 Map the process visually to establish the ideal future state 8 Document the process and changes required and follow through 3 0 What A VSM is a picture map of the entire process being studied and includes both material product service and information flows decision points handoffs and interactions with other systems Once a process is accurately documented the team determines which steps are value added and which are non value added Subsequently a VSM identifies waste within a process and areas for potential improvement Seeing the system laid out visually allows participants to remove the waste through step elimination and helps them understand the true value of the process system The VSM is a scalable actionable exercise and should prompt action to reduce waste in the process This waste reduction frees up resources for other value added activities A VSM should be Defined Documented Distributed and Monitored in order to ensure that it is an actionable document because the VSM is created as a prelude to action Quick Reference Learning to See Waste 23 Continuous Improvement 179 Go to the Work 191 216 Transforming Design and Construction A Framework for Change

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39 CHAPTER WORK STRUCTURING Introduction Work Structuring can be described as a path taken from chaotic work to optimized work It involves implementation of a number of strategies and tools including defining standard processes working to optimize those processes and seeking one piece flow while employing tools such as mistake proofing and built in quality The construction industry must work to eliminate the celebration of heroic behavior taking on a nearly impossible task and putting the project at risk by taking a step back and being more intentional about work structuring The potential exists for significant transformation resulting in massive improvements in productivity and quality The complaint that standardization stifles creativity isn t valid Rather standardization creates the platform from which innovation can spring CHAPTER 39 Work Structuring 217

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1 0 Why The fundamental grounding of Work Structuring involves the identification of repetitive processes and subsequent structuring into standard work Repetitive actions can be transformed into standard processes The complaint that standardization stifles creativity isn t valid Rather standardization creates the platform from which innovation can spring Companies should always seek the new standard Additionally the complaint that construction isn t repetitive isn t valid either While every project itself is a different product the processes that make up the final product repeat from one project to another Standardization and optimization produce outcomes that include higher quality of work better safety increased efficiency and higher productivity These results are sought universally by all organizations Foster the improvement process by teaching people to think of work process in terms of mistake proofing 2 0 How As with many Lean approaches Work Structuring seeks to optimize the whole For work structuring to be effective there must first be an awareness of local optimization followed by an understanding of how the various local systems interact from the perspective of global optimization Under Work Structuring a system centric view is preferable to a product centric view with the key focus being the integration of systems Local improvements must be evaluated within the context of the entire project building to a global level is a logical progression Work Structuring often begins with an effort to standardize repetitive work However it is important to note that non repetitive work is ripe for improvement as well In nonrepetitive work individuals should seek hidden repetition and find opportunities to optimize and strengthen connections and the handoff of work Companies should always seek the new standard by elevating the baseline through innovation As new innovations arise the baseline moves in concert to become the new better practice that is spread through the company as the updated standard This cycle can repeat perpetually and is the basis of Continuous Improvement 218 Transforming Design and Construction A Framework for Change

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Document the new process in a visual manner and distribute to all workers who will implement it Post the process so it can be seen and referenced from where the work is being performed The contractual terms can help or hinder the ability of the team to optimize the whole and properly structure work Traditional ways can hinder in optimizing work but relational contracting methods such as an Integrated Form of Agreement IFoA can help overcome the methods of the past An identified standard process can be used as a baseline for continuous improvement Refining the balance Mistake proofing can be a powerful tool in Work Structuring A mistake proof step in a process prevents the one doing the work from performing the step incorrectly A simple example can be taken from operating a car In most cars with an automatic transmission the car cannot be started unless it is in park or neutral Most of these cars cannot shift out of park unless the brake pedal is depressed Furthermore the key cannot be removed unless the car is placed in park Most cars with a manual transmission will not start unless the clutch is depressed These are examples of mistakeproofing because they only allow the driver to behave in one optimal safe manner Built in Quality can also significantly shape Work Structuring Building in quality improves the work by reducing or eliminating the need to check or monitor a process Most critically quality occurs at the point where a discrete step in the process occurs instead of at the end of a process where defective work has already taken place CHAPTER 39 Work Structuring 219

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Traditionally the work product was inspected in a finished state meaning that any defect that occurred would have been replicated multiple times With Built in Quality elements requiring inspection or verification are addressed at the point where they are implemented often through a mistake proofing process An excellent example comes from the original Toyota loom which featured a device that stopped the loom when a thread broke Rather than having to constantly monitor the loom or waiting to find that the woven goods were defective the Built in Quality of the device removed the need for monitoring or checking 3 0 What Work Structuring involves the following steps 1 Identify an activity with repetitive work Carefully examine the work your organization performs Select an activity that is repeated frequently and that has some number of discrete steps Start with a common process that is relatively simple and yet still substantial This increases the chance of beginning your improvement effort with an easy win a key component to initial buy in for the Work Structuring effort Start small to gain experience through repetition then take on increasingly difficult and complex processes as your team gains experience 2 Develop a standard process for executing the repetitive work Carefully map the steps of the activity in a thorough manner Involve the people who perform the work and have them work together using sticky notes to illustrate their discussion Pay careful attention to detail and be prepared to spend time defining what each step entails Encourage participants to share their stories of performing the work what went well what didn t work as planned what they wish they had to do the job better Translate these recommendations into steps for the process It is important to reach consensus on how to best do the work with the people present in the process Also define what you are seeking to improve and how you will measure it Common metrics include greater installation speed fewer workers required less material needed reduced number of errors etc 3 Implement the standard process Document the new process in a visual manner and distribute to all workers who will implement it Post the process so it can be seen and referenced from where the work is being performed Plan for review and training of the standard process and prepare to monitor its initial implementation with all workers Seek agreement that people will rigorously follow the standard process even if it is not the way that they have personally performed the work in the past Monitor the outcome of the process against the developed metrics Publish and celebrate the results 220 Transforming Design and Construction A Framework for Change

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4 Encourage innovation from those executing the standard process Incentivize compliance with the standard by promising the opportunity for innovation Explain that workers can start with the standard process as the baseline and that when they find a better more innovative way to perform a step in the process their innovation will become part of the next standard process and will be spread across the organization Recognize innovation by publicly celebrating the innovator and the improvement they made Explain that this cycle of standard improvement new standard improvement will continue forever Tie the improvements back to the metrics and share the story of how each improvement helps to better meet the metric 5 Stabilize the standard process then stress to optimize Once you are comfortable that the standard process has taken hold and the team has achieved results as demonstrated by measuring against the metrics begin to optimize the standard process Reassemble the people performing the work and challenge them to push steps in the process Work step by step with the intent of maximizing each step until it breaks Then stop and assess why the step broke and refine how it is performed Stress the process until the team reaches an optimal state As you develop more standard processes move from one to the next stressing to optimize Don t stress more than one process at a time to avoid over burdening the team but maintain a vigorous rotation so that there is an improvement effort occurring at all times Then continue to cycle through various processes Before you know it your team won t just be performing the work they will be perpetually improving the way that they work 6 Seek opportunities for mistake proofing steps in the process Foster the improvement process by teaching people to think of work process in terms of mistake proofing Challenge them to structure the process in a manner that reinforces the correct method by removing the opportunity to perform the work incorrectly 7 Introduce elements of built in quality to the process Establish gateways in the process where work is checked for quality At a minimum place these at points where work is handed off from one stakeholder to another both internal and external to the organization Once established as gateways work to pull the elements of the quality check upstream into the process Couple these built inquality elements with mistake proofing to further decrease the chance of defects CHAPTER 39 Work Structuring 221

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CHAPTER 40 A3 THINKING Introduction Projects are developed by experts and contributors with various backgrounds and experiences making thousands of decisions Those experiences inform decisions whether appropriate or not and ultimately determine project cost and outcome Collaborative projects have learned that waste is often imbedded in those decisions that don t directly apply to the current project Conditions of Satisfaction CoS A High Performing team will create a decision making process and rigorously perform the A3 Thinking decision making process to identify and reduce waste while improving compliance to the CoS Done correctly A3 reporting can provide concise project updates for senior oversight individuals and drive faster input and feedback CHAPTER 40 A3 Thinking 223

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1 0 Why Teams should use an A3 to improve collaboration outcomes and the problem solving of specific issues Due to the size of an A3 typically displayed on an 11 x 17 sheet of paper teams are required to focus each A3 on a complicated or broadly compelling decision or a single small to mid size problem Done correctly A3 reporting can provide concise project updates for senior oversight individuals and drive faster input and feedback It can also provide a regular snapshot of project health Another advantage of an A3 is the historical record of the issue that it provides along with the rationale behind various decisions or solutions and how the team arrived at them This can be a useful document to reference later in the project to understand the thinking at various critical points A properly executed A3 should reveal the rigor and thought a team used to resolve an issue thereby increasing confidence with senior leadership Other benefits include Identifying root causes Creating a dashboard of useful information to reference throughout the project Sharing information and knowledge among team members Reaching consensus among team members and Promoting deliberative thoughtful decision making The A3 process is also a good learning tool Authors are mentored by more experienced reviewers Everyone involved in an A3 has an opportunity to sharpen their problem solving skills A word of caution producing A3 documents without utilizing the A3 thinking process could still lead to various types of waste 2 0 How An A3 is a collaborative document usually managed by a single author or champion who has ownership of the document and oversees its development The champion drives the process and encourages contributions from team members A more senior team member or leader serves as a reviewer and mentor guiding and challenging its assumptions recommendations and conclusions This process is performed with the author in mind so that the information can be consumed in a short time period thereby yielding sharper thinking 224 Transforming Design and Construction A Framework for Change

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While there are many ways an A3 process can work the following image provides a good example of how these steps often look PROBLEM SOLVING A3 PROCESS Problem Perceived 7 Obtain Approval NO Return to STEP 1 1 Grasp the Current Condition YES 8 Execute the Implementaion Plan 6 Discuss with Affected Parties 2 Identify the Root Cause 3 Devise Countermeasures and Visualize the Future State 9 Execute the Follow up Plan NO Are Targets Met 4 Create Implementation Plan 5 Create Follow up Plan YES Establish Process Standrad Identify Next Problem In pursuit of building perfection JEDUNN Remember that an A3 is a high level tool that does not prescribe specific steps Those can be shaped by the champion reviewer and team members With that in mind below are a few tips for using an A3 Prominently define the problem that A3 is addressing Include a list of participants so it is clear who contributed to the process Make sure each A3 has an owner or champion Don t feel compelled to fill up the entire 11 x 17 paper if it s not needed If the problem doesn t fit in the space break it into a smaller problem that can fit on the paper or reshape the presentation more precisely Use a platform that provides version control and allows editing by all team members Integrate visuals if they are more effective than text in communicating ideas or illustrating points Update the document as new information becomes available CHAPTER 40 A3 Thinking 225

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3 0 What A3 thinking is a collaborative process management and improvement tool developed by Toyota The applications of an A3 are broad It can be used for problem solving decision making planning or reporting of a specific issue from the proposal stage to commissioning For example an A3 might be used to decide which system to select or how to accomplish LEED certification Often it is part of a PDCA cycle or DMAIC cycle An A3 is an indispensable tool due to the structure focus collaboration and consensus it brings to problem solving and decision making The flexibility of the tool also makes it easy to adapt to a variety of tasks and contexts No special software or tools is needed to use an A3 It can be developed using a pencil and paper or commonly used programs like Excel Word and PowerPoint The only formatting requirement of an A3 is that it be presented on an 11 x 17 sheet of paper References How to Use A3 Reports on Projects Lean Project Consulting Project Development for the Lean Enterprise Michael Kennedy Understanding A3 Thinking Durward Sobek and Art Smalley Managing to Learn Using the A3 Management Process to Solve Problems Gain Agreement Mentor and Lead John Shook Quick Reference Facilitation 57 Continuous Improvement 179 Conditions of Satisfaction 133 226 Transforming Design and Construction A Framework for Change

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CHAPTER 41 CONCEPTUAL AND CONTINUOUS ESTIMATING Introduction A collaborative project environment is intended to solicit and share input from various constituents across the delivery supply chain To maximize the value of this interaction and to facilitate true value based decisions participants must have conversations about solution Set Based Design concepts that lead to the need to understand the cost impact of these decisions Continuous Estimating is the effort of regular frequent updating of the estimate while also tracking specific variances from the last update Understanding these cost impacts requires Conceptual Estimating a rare highvalue skill that differs from other more common estimating skills This skill is particularly important in the collaborative environment where cost information informed by wellgrounded time and schedule assumptions is critical to determining which asset solutions can be provided to stakeholders within the given time and financial constraints CHAPTER 41 Conceptual and Continuous Estimating 227

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Continuous Estimating is the effort of regular frequent updating of the estimate while also tracking specific variances from the last update 1 0 Why Conceptual Estimating requires the constant re evaluation of a project s value proposition established from the beginning and updated frequently throughout the process Ultimately Continuous Estimating allows constant confirmation of the viability of the project providing validation of the business case from the earliest stages Conceptual Estimating along with Set Based Design seeks to validate the business case and answer the question What is the delta between what the owner wants and what the business case will support Owners need to recognize whether they can ultimately afford the development and whether the required capital investment is appropriate With Conceptual Estimating the owner is provided with significant options that can lead to various outcomes with one possibility being not to proceed with a project In order to make accurate value based decisions meaningful real time understanding of the cost implications of each decision is necessary Continuous Estimation provides early validation of Want vs Need a balancing act with constant tradeoffs Cost can and should inform design Understanding the cost implications of design decisions is a valuable tool for designers to better align with owner intent and maximize the value of their design In many cases a continuously updated estimate prevents the frustrating and expensive re design common to capital projects 2 0 How Two skill sets are key elements of Conceptual and Continuous Estimating one soft involving necessary interpersonal skills and the other mechanical having the actual experience and knowledge It is important to note how these required skills differ from those of a traditional estimator Mechanical At the outset of a collaborative project the team should develop a detailed cost projection of the want When possible benchmark what is feasible based upon historical experience This is balanced against what an owner can spend by way of the business case and a target is then established The overall target budget is often broken into systems or components and shared 228 Transforming Design and Construction A Framework for Change

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with various cluster groups to use as a guide for further development This arms them with a tool to inform their design decisions A format for incorporating up to date data and benchmarking is required so that all participants understand the costs and target in the context of the whole project It is crucial that all participants understand the makeup and adjustments to this budget tool Cost data should be pushed out into or inform A3 BIMs CBAs and other decision making tools Participants must have a rich understanding of what is required for the project without the need of a sketch Accuracy is paramount but a balance of the appropriate level of accuracy as the situation demands will ensure less overwork and speedier decisions This also requires Onboarding the right experts at the last responsible moment to aid in the accuracy and requires good handoff of ownership of those scopes Estimators who have problems imparting information should be pressed to explain When design decisions are made without understanding the cost rework is a direct outcome so estimators should be party to all conversations Estimate with an optimistic yet realistic view and take the time to document and share risks as they are imagined or discovered Continuous Estimating is not re estimating the entire project on a specific frequency It is continually reporting out changes since the last report in an easily consumed format as the design solidifies Estimators need to have an understanding of what their project customers need Information that is too vague is not adequate for a design decision while too much detail can restrict the process as well Reference materials such as photographs or plans from past projects can help bridge the understanding gap between designer and estimator Soft Communication is crucial Listening intently is important to understand wants and needs of the owner and intent of the designer An understanding of the level of detail value proposition or level of accuracy is critical The confidence and trust to share opinions is valuable Facilitation of negotiation continues to be integral to the process Design elements beyond program basics must earn their way into the project rather than be dropped in and backed out Therefore continuous value discussions are required The success of this process demands that the owner share its historical knowledge with the team Many products or processes are unique and have little industry comparative cost data but owners should still share this information with builders to CHAPTER 41 Conceptual and Continuous Estimating 229

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better inform set based decisions Hiding these costs only pushes challenges further into the process when less opportunity for resolution exists 3 0 What The primary focus of estimating is to create with an applicable level of accuracy and fidelity a construction plan that can be successfully executed per the project Conditions of Satisfaction and is key to the Target Value Design process Continuous Estimating will inform set based design and reduce re design by keeping the team aligned with the project intent and designing within the range of affordable solutions Early and constant monitoring is necessary to make sure the team stays within its parameters Early validation of the business case is necessary in addition to arming the team with information to enable it to make informed future decisions and stay within the business case Early Stakeholder Involvement See Early Stakeholder Involvement is critical to the success of the process and validity of this information 4 0 Who All team members need to have a sense of cost when considering design decisions If those skills are not within the cluster an expert with the required knowledge should be engaged Quick Reference The Value Proposition 19 Onboarding 187 Project Conditions of Satisfaction 133 230 Transforming Design and Construction A Framework for Change

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CONTRIBUTORS BERNITA Beikmann Bernita Beikmann AIA EDAC LSSBB is a Principal with HKS Inc Dallas office and the Director of Lean Strategy for the office She graduated from Kansas State University with a Bachelor s of Architecture and Certificate in Regional and Community Planning in 1996 She is a registered architect in the state of Texas and has completed projects in Texas California Oklahoma Florida Washington Ohio Indiana Washington D C and Nevada Ms Beikmann has been with HKS for 19 years and has spent the last 17 years primarily on healthcare projects The last eight years her work has been focused on IPD and Lean Project Improvement on projects and with project teams She is a successful advocate for Lean planning design and construction She has served integral roles as a project architect and project manager and as a coach and facilitator for project teams As Director of Lean Strategy and a Lean Six Sigma Black Belt she works with all departments at HKS to improve internal processes She has shared her expertise with more than 12 organizations and conferences in the last several years and was one of the original Core Team members of the DFW LCI Community of Practice Ms Beikmann currently is serving on the joint committee for the American Institute of Architects and Associated General Contractors of America CONTRIBUTORS 231

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CHAUNCEY Bell Chauncey Bell has enjoyed a long career of industryreshaping projects spanning many industries including Cement and aggregates Semiconductor construction and manufacturing Hospital construction Heavy equipment manufacturing Mining Electric utilities electric distribution and wind farms Wholesale and retail banking Mr Bell s projects shift clients cultures shift the way that their commercial networks operate and add hundreds of millions to revenues and profits REBECCA Bettler Rebecca Bettler is the National Director of Lean with JE Dunn Construction She leads a group of coaches and trainers for all employees and project teams implementing Lean practices and behaviors She started in the construction industry in 1996 beginning her Lean journey in 2006 She is also the Chair of the Lean Construction Institute Education Committee Prior to JE Dunn Ms Bettler spent more than five years consulting on the application of Lean principles in various organizations and project types This includes working with Owners architects contractors and engineers Integrated Lean Project Delivery teams leading strategic planning sessions implementing Last Planner System and various other Lean practices She has developed and delivered training materials and written white papers on various Lean Construction applications In addition to being an active member of the Lean Construction Institute she is also a Master Trainer of the Choosing by Advantages Decision making System Ms Bettler holds a degree in Business Management from the University of Phoenix 232 Transforming Design and Construction A Framework for Change

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DIGBY Christian Digby Christian is the Senior Regional Program Manager overseeing the teams that are designing and building two new hospitals representing a 2 billion investment in San Francisco for Sutter Health a not for profit healthcare provider located in Northern California Previously he managed the project to build the 309 million Sutter Health Eden Medical Center in Castro Valley Calif It was delivered using an Integrated Project Delivery IPD contract under budget ahead of schedule with no compromises to Sutter s conditions of satisfaction for the building On these projects Mr Christian leads Sutter s effort to create a work environment that supports understanding what s valuable to the client and encourages the teams to actively and continually figure out how to align their work practices with delivering that value This has required changing the way project teams look at risk at contracts at estimating at work planning at design and construction coordination at supply chain management at production tracking all leading to a radically different team culture one of engaged continuous reflection and improvement of mutual respect and accountability Outside of project management Mr Christian represents Sutter within the Large Owner s Group an international grouping of approximately 20 companies that each spend at least 500 million per year on capital assets and are committed to transforming the design and construction industry Mr Christian is an active participant in the Lean Construction Institute s Knowledge Transfer sessions that seek to spread what is being learned by leading Lean practitioners He also is a supporter of and an engaged contributor to the efforts of UC Berkeley s Project Production Systems Laboratory P2SL SAMIR Emdanat Samir Emdanat is the Director of Ghafari Management Services and Director of vPlanner Product Development He is an industry recognized leader in managing Integrated Project Delivery teams He is known for his approach to overall project integration which consistently results in breakthrough results in various industries In 2005 Mr Emdanat was recognized by ENR as one of the top 25 newsmakers for his work with General Motors on the Virtual Factory Initiative which resulted in breakthrough innovations in schedule cost quality and safety CONTRIBUTORS 233

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Most recently he developed vPlanner a visual planning solution that supports the Last Planner System He also continues to lead the implementation of Lean and VDC construction initiatives for owners in automotive government hospitality and healthcare as well as contractors and architects engineers around the world CHARLES Chip Hill As Senior Principal and Co Owner of Stengel Hill Architecture Chip Hill s responsibilities include all facets of the Architectural Profession and business ownership including operations management business development quality control design standards development planning design and construction administration Mr Hill has more than 20 years of experience in the planning design and construction of healthcare commercial and educational facilities He is a member of the American Institute of Architects the National Council of Architectural Registration Boards and the U S Green Building Council KRISTIN Hill Kristin Hill brings over seven years of Lean consulting expertise to the design and construction industry Prior to being a Lean Consultant Ms Hill founded grew and subsequently sold an architectural firm in the Boston Area As President of InsideOut Consulting Inc Ms Hill currently provides coaching to teams for projects being delivered using Lean principles and tools JESSICA Kelley As Director of Learning and Development for Southland Industries Jessica Kelley is using her past experience to grow and refine the organization s learning and development strategy to support project execution team function and Lean thinking 234 Transforming Design and Construction A Framework for Change

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Ms Kelley started her career with Southland Industries designing and managing design build maintain projects for large high tech mission critical healthcare and bio pharmaceutical clients In this role she was responsible for successfully delivering projects ranging from 5 200 million dollars while maintaining budget schedule client relationships and design requirements with a focus on value delivery and waste elimination From there she has had the opportunity to support and manage Southland s ERP selection and implementation initiative Ms Kelley has been involved with the LCI Northern California Community of Practice since its inception and became a core group member in 2007 She held a leadership role from 2008 through 2012 and served as the 15th Annual LCI Congress Chair Ms Kelley is currently serving on the AGC Training and Education Committee Ms Kelley remains active in the LCI and Lean construction communities and is an advocate for lean thinking Ms Kelley received her bachelor s in architectural engineering with a focus in mechanical from The Pennsylvania State University and is a licensed Professional Engineer in the State of California DOUGLAS Lee Douglas Lee is a Vice President and Regional Preconstruction Director with Brasfield Gorrie He leads two estimating departments of approximately 40 estimators and helps champion Lean and other innovative delivery models within the company He started in the construction industry in 1995 beginning his Lean journey in 2006 at the Texoma Medical Center Mr Lee graduated with a Bachelor s in Building Construction from Auburn University He has been lucky enough to be involved with estimating coaching and facilitating over 14 ILPD projects through preconstruction efforts Mr Lee lives in Birmingham Ala with his wife of 20 years Jennifer and three children CONTRIBUTORS 235

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JEFFREY Loeb With more 20 years of experience in the design construction and leadership of complex process industry capital projects Jeff Loeb works as a project coach and internal Lean consultant in CH2M HILL s Industrial and Advanced Technology I AT group He supports project teams and leaders in Lean delivery approaches including integrated delivery target value design pull techniques Choosing By Advantages continual learning and reliable promising Mr Loeb is committed to working with people who are intent on transforming the way projects are led designed planned and coordinated so they turn out better and are a better experience CH2M HILL I AT designs and constructs facilities for customers in high technology markets such as PV solar flat panel display data centers labs and semiconductors general manufacturing and life sciences CH2M HILL is a full service EPC and Program Management firm with in house multidiscipline design services HAL Macomber Hal has been at the forefront of Lean design and construction from the inception of the Lean Construction Institute The Neenan Company where he was the Chief Operating Officer was one of the six firms that supported the founding of LCI During the last 19 years Hal has authored or co authored numerous papers that shifted the direction of Lean including introducing reliable promising Target Value Design Good Five Whys and the Last Planner practice of daily commitment management huddles ROMANO Nickerson Romano Nickerson is a healthcare architect and principal with Boulder Associates Architects and is a passionate advocate for Lean design and project management He has presented at the annual Lean Construction Insititute Congress the Lean Design Forum the AGC of America Lean Forum the Planetree National Convention and at local community of practice meetings of LCI across the country He recently gave a presentation at Tallin University of Technology in Tallinn Estonia Romano serves as the LCI representative to the AGC Lean Sub forum and co authored a paper entitled Production Control Principles for the International Group for Lean Construction 236 Transforming Design and Construction A Framework for Change

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BRENT Nikolin With 16 years of construction industry experience Brent Nikolin fosters Lean practices and behaviors as the Director of Continuous Improvement at Turner Construction He facilitates Lean implementation with employees and project teams throughout the organization and industry His Lean journey started in 2008 and he and has since been an active advocate of its adoption After graduating from the University of Illinois with a Bachelor s in Civil Engineering Mr Nikolin started his career in Chicago with a large general contractor He worked his way through varied levels and positions including superintendent estimator engineer and project manager all while learning the aspects and fundamentals of the construction process In 2003 Mr Nikolin moved to California and joined Turner Construction Company where he worked as a Senior Project Manager on several large healthcare projects before moving into his current role LISA Reynolds Lisa Reyolds is Strategic Program Manager Corporate Services Construction Intel Corp She joined Intel in 1995 and has worked in various management roles in Construction Operations Basebuild Tool Installation and Construction Procurement Her current strategic role is responsible for driving positive change through Intel s construction enterprise and externally in the construction industry through Innovative Project Delivery Strategies and Supplier Collaboration Methods Ms Reynolds is an active member of Lean Construction Institute Construction Industry Institute Construction Users Roundtable CURT and is Co chair for CURT s Project Delivery Committee Prior to joining Intel Ms Reynolds obtained her B S in Civil Engineering from the University of California Irvine and worked as a design engineer for eight years She has an M B A in Strategic Organizational Development and is a registered Professional Engineer in California and Arizona Ms Reynolds is married with three children and resides in Chandler AZ Her hobbies are keeping up with her family vacationing and riding motorcycles with her husband CONTRIBUTORS 237

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ZOFIA K Rybkowski Zofia K Rybkowski Ph D is an Assistant Professor in the Dept of Construction Science at the College of Architecture at Texas A M University Dr Rybkowski s research experience includes Integrated Project Delivery productivity analysis and Lean construction simulation development and testing target value design lifecycle cost analysis sustainable design and evidence based design She has extensive experience as a construction architectural and engineering researcher and consultant She has consulted for firms in Boston San Francisco Tokyo and Hong Kong Dr Rybkowski holds degrees from Stanford Brown Harvard the Hong Kong University of Science and Technology and the University of California Berkeley She earned her MArch degree in Architecture from the Harvard Graduate School of Design and her Master s and Ph D in civil and environmental engineering from the University of California Berkeley Dr Rybkowski teaches Lean construction to advanced construction science students She is a Fellow at the Center for Health Systems and Design and at the Institute for Applied Creativity She is an LEED AP WILLIAM R Bill Seed Bill Seed is currently helping Walt Disney Imagineering transform its project delivery model to Integrated Project Delivery While new to the entertainment industry he is using the skills developed in his prior roles to affect this change Mr Seed has spent over 30 years in construction related industries 23 years specifically dedicated to healthcare He earned his Bachelor s in Mechanical Engineering from the University of Akron in 1990 He spent the previous seven years overseeing 3 billion of construction and design activities for Universal Health Services Inc He and his various teams have developed over 2000 new Behavioral Health beds including four green field campuses five new Medical Acute Care hospitals and numerous large and smaller facility enhancements Most of these projects utilized Integrated Project Delivery methods and contracts and have shown phenomenal results 238 Transforming Design and Construction A Framework for Change

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Mr Seed is a member of National Academy of Constructors Vice Chair Board of Directors of the Lean Construction Institute the winner of the LCI Pioneer award in 2012 and an active owner advocate for the implementation of Integrated Lean Project Delivery CYNTHIA C Y Tsao As Director of Lean Strategy at Consigli Construction Co Inc Cynthia C Y Tsao Ph D is responsible for customizing the approach for Lean implementation on projects as well as within and across company departments A proponent of Lean project delivery since 1997 Ms Tsao uses her expertise in product process design integration to help teams improve project outcomes by efficiently using and enhancing team member capabilities as well as transforming complex design problems into ones that are easier to manage and construct Recognized by her peers as an expert in process improvement Ms Tsao guides Consigli s departments in general process improvements and project teams in Lean design and Last Planner System implementation Prior to joining Consigli Ms Tsao assisted companies and project teams throughout the U S in starting and sustaining their Lean journeys She remains involved in Lean advocacy on a national level and Lean education and research initiatives on an international level CONTRIBUTORS 239

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GLOSSARY A3 A one page report prepared on a single 11 by 17 inch sheet of paper that adheres to the discipline of PDCA thinking as applied to problem solving or A3 Thinking The A3 includes the background problem statement analysis proposed corrective actions and the action plan and the expected results often with graphics A3 reports can be used as a standard method for summarizing problem solving efforts including analysis of Target Value Design options status reports and planning exercises 3P Production Preparation Process 3P is preparing an area physically and processwise for a new or expanded service line It involves simulation usually using cardboard cutouts to look at the layout for staff to design or redesign space 5S A disciplined approach to maintaining order in the workplace that uses visual controls to eliminate waste Typically the English translations of the 5S words are Sort Set in Order Shine Sweep Standardize and Self Discipline Sustain 5 Why Analysis The problem solving technique used to dig for the root cause of a condition by asking why successively at least five times whenever a problem exists in order to get beyond the apparent symptoms As each answer to the why question is documented an additional inquiry is made concerning that response GLOSSARY 243

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Actual Cost In Target Value Design the documented costs of actually performing a portion of work or an entire project based upon agreed definitions of cost overhead and profit Allowable Cost The maximum amount the Owner is willing and able to spend for a facility asset Batch An accumulation of work produced by a trade discipline or other specialist that moves as a unit The goal of lean is to produce a batch size of one to achieve single piece flow Leading to the mantra Flow where you can Pull where you can t Push where you must Black Belt Individual certification of full time facilitators for long term projects four to nine months or Kaizens two to five days using Lean Six Sigma methodology Black Belts also can coach Green Belts and the A3 process Choosing by Advantage CBA Choosing by Advantage is a tested and effective decision making system developed by Jim Suhr for determining the best decision by looking at the advantages of each option CBA s five phases of decision making 1 Stage setting establish the purpose and context for the decision 2 Innovation formulate an adequate set of alternatives 3 Decision making choose the alternative with the greatest total importance of advantages 4 Reconsideration change the decision if it should be changed or improved on and 5 Implementation make the decision happen adjust as needed and evaluate the process and results Commitment Based Planning A planning system that is based on making and securing reliable promises in a public setting 244 Transforming Design and Construction A Framework for Change

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Conditions of Satisfaction A directive or set of criteria that specifies how the success of the outcome will be gauged Conceptual Design The phase of the project that determines WHAT is being built Deliverables include program technology plan target cost budget performance metrics conditions of satisfaction and milestone schedule Constraint Something that stands in the way of a task being executed Continuous Flow Work that proceeds without interruption or waste Criteria Design This term is from the AIA IPD terms The project phase where the project begins to take shape Deliverables include set based design studies evaluated and studied by IPD team real time estimating defined scope target cost approval more developed schedule and quality review of constructability of design Customer The primary recipient of the output from processes In Lean Six Sigma the terms customer external customer or end user describes individuals and organizations that pay for and receive products and services The terms customer internal customer or process partner often are used at the project level to describe those parts of the organization that internally receive the output from process being improved Cycle Time The time it takes a product or unit of work i e a room building quadrant to go from beginning to completion of a production process GLOSSARY 245

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Detailed Design This term is from the AIA IPD terms This project phase concludes the WHAT phase of the project Deliverables include approved documents with decisions defined definition of all major building systems including furniture fixtures and equipment and coordination and full engineering of all building elements Also Sub trades are ready to start shop drawings construction quality review and outline and products are established and vetted for specifications DMAIC Pronounced Duh MAY ic A sequential five step improvement process for improving existing products and services DMAIC is the abbreviation for Define Measure Analyze Improve and Control Define describes the performance gap to be closed Measure describes the method of measurement and collection of data to describe the baseline performance Analyze identifies the root cause of the performance gap Improve develops selects and implements improvements to the process Control validates that the performance gap has been closed and establishes management controls and ongoing metrics to ensure that project gains can be sustained over time Enabling Projects The many and multiple secondary projects required to be accomplished before the primary project can be undertaken Error Proofing Describes when it is near impossible for an error to occur Examples in healthcare are dialysis machines that allow only flow out of the patient Leur locks that allow only certain syringes to attach to be attached and enteral feeding tubes that will not attach to IV machines 246 Transforming Design and Construction A Framework for Change

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Expected Cost An expression of the team s best estimate at the conclusion of the Validation Phase of what current best practice would produce as a price for the facility reflected in the accompanying basis of design documents Typically the Expected Cost will also be supported by benchmarking or other market data to calibrate the Expected Cost in light of the market context Evidence Based Design Evidence Based Design represents a model of design practice characterized by the use and generation of scientific evidence to support decision making First Run Study Trial execution of a process in order to determine the best means methods sequencing etc to perform it First run studies are done at least a few weeks ahead of the scheduled execution of the process while there is time to acquire different or additional prerequisites and resources They may also be performed during design as a basis for evaluating options or designing the portion of the work Five Big Ideas A set of organizing concepts that support Lean Project Delivery They were developed to explain and organize the Sutter Health Lean Construction Initiative Optimize the project not the piece Collaborate Really Collaborate originally implied specialty contractors involved at schematic design Projects as Networks of Commitment Increase Relatedness and Tightly Couple Action and Learning Fishbone Diagram A tool used to identify and organize possible causes of a problem in a structured format It looks like the skeleton of a fish with the head of the fish used as the main problem in question and the body to signify the causes It also can be used as tool for capturing the ideas of a team Future State Value Stream Map Taking the Current State value stream map and seeing how it should look in an ideal world eliminating steps and getting rid of waste GLOSSARY 247

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Gemba The Japanese term for workplace i e where the work is actually getting done Lean experts encourage going to the gemba to see how things are really done and where there is opportunity to eliminate or reduce waste Green Belts Individual certification of part time facilitators of long term projects four to nine months or Kaizens two to five days that are of strategic importance to the organization using Lean Six Sigma methodology These staff members can also coach on A3 development and help with Black Belt project initiatives Hand off The act of releasing an item or activity to the person or group performing the next step or operation on that item or activity e g a structural steel design is handed off to the steel detailer to complete shop drawings a room or portion that has been framed is handed off to the drywall installer or all construction on a floor of a hospital is completed and it is handed off to the hospital personnel to begin staff and stock activities Implementation Documents This term is from the AIA IPD terms During this phase focus shifts from WHAT is being created to documenting HOW it will be implemented Deliverables include Coordinated BIM model shop drawings for some trades specifications and the drawings required to define procurement assembly layout schedule procedural information and legal requirements Integrated Project Delivery IPD A project delivery approach that integrates people systems business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of the project from early design through project handover Inventory Stock on hand often divided between raw materials inventory work in process and finished goods inventory 248 Transforming Design and Construction A Framework for Change

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Kaizen Japanese term for the philosophy of incremental continuous improvement Kanban A signal that usually is visual Generally it signals that it is time to do work or that the next step in the process needs to be done Examples include tape on the counters signaling that a specimen or prescription is done or flags on the doors to exam rooms that a patient is ready to be seen A kanban also can be a signal to trigger replenishment in an inventory control system Last Planner The person or group that makes assignments to direct workers Squad boss and discipline lead are common names for last planners in design processes Superintendent if a job is small or foreman are common names for last planners in construction processes Last Planner System LPS The collaborative commitment based planning system that integrates should can willdid planning pull planning make ready look ahead planning with constraint analysis weekly work planning based upon reliable promises and learning based upon analysis of PPC and Reasons for Variance Last Responsible Moment Delaying commitment until the last responsible moment that is the moment at which failing to make a decision eliminates an important alternative If commitments are delayed beyond the last responsible moment then decisions are made by default which is generally not a good approach to making decisions Lean Culture of respect and continuous improvement aimed at creating value for the customer by identifying and eliminating waste GLOSSARY 249

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Lean Project Delivery System LPDS LPDS represents the development and delivery of a project from determining that which helps clients better achieve their business purposes through final use Positive iterations are encouraged within each phase so as to prevent negative iteration between the phases Production control work structuring and learning are continuing functions Load The utilization of a resource The amount of output expected from a production unit or individual worker within a given time Within a weekly work plan what is to be accomplished by a design squad or individual designer engineer draftsperson construction craft worker crew etc A quality assignment loads a resource within its capacity Look Ahead Planning A short interval plan usually based on the pull phase plan that identifies all the activities to be performed in the next six weeks The 6W Lookahead Schedule LAS is updated each week and always identifies new activities coming six weeks out so that the project management team can make appropriate arrangements to assure that the work will be ready to be performed in the week indicated When an activity cannot be advanced the reason why is identified and listed as a constraint The 6W LAS typically has been prepared as an Excel spreadsheet but it may also be captured using one of the scheduling software packages The output of look ahead planning is a list of constraints and individual commitments to remove those constraints meeting the follow on trade s Conditions of Satisfaction Look Ahead Window The duration associated with Look Ahead Planning Typically look ahead windows extend from three to 12 weeks into the future with six weeks preferred on most projects Reducing the look ahead period normally will increase inventory pushed to site organization 250 Transforming Design and Construction A Framework for Change

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Master Schedule A schedule that identifies major events in a project start up turn over to client order long delivery components mobilize in field complete design government reviews etc and their timing It is the basis for contractual agreements between the Owner and other team members It is seen as a way to identify long lead items the feasibility of completing the project as currently required the basis for defining milestones and phases but not as a way to control the project Milestone An item on the Master Schedule that defines the end or beginning of a phase or a contractually required event Muda Japanese word for non value added or Ohno s 7 Wastes 1 Mura Japanese word for unevenness fluctuation in demand that causes the workflow to be uneven Muri Japanese word for overburdening excessive demand on a system that causes the system to produce beyond its reasonable capacity Pushing a machine or person beyond natural limits Overburdening people results in safety and quality problems Overburdening equipment causes breakdowns and defects Network of Commitments The web of promises necessary to deliver any project The role of management is to articulate and activate the unique network of commitments required to deliver each project Non value added Tasks or activities that the organization performs that the customer does not value and if given the choice is not willing to pay for GLOSSARY 251

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PDCA Cycle Stands for Plan Do Check Act The cycle introduced by Walter A Shewhart and popularized by Dr W E Deming as a method of continuous improvement PICK Chart An Ease Impact chart that segregates ideas into Possible Implement Challenge and Kibosh categories Plan Reliability The extent to which a plan is an accurate forecast of future events measured by PPC Example If your weekly work plans have a 60 PPC they accurately predict completion release of 60 of the tasks represented as weekly assignments Plus Delta Review A discussion done at the end of a meeting project or event used to evaluate the session or activity Two questions are asked and discussed What worked or produced value during the session What could we do different better next time to improve the process or outcome Poke yoke A mistake proofing method or device developed by Shigeo Shingo that is used to prevent an error or defect from happening or being passed on to the next operation PPC Plan Percent Complete A basic measure of how well the planning system is working calculated as the number of assignments completed on the day stated divided by the total number of assignments made for the week In many cases the PPC will be less than 50 when a project starts to monitor the PPC and will rise to 80 or 90 as the team becomes conscious of the need to actually perform work as planned PPC is not a form of Earned Value that measures the percentage of completion achieved for an activity rather it measures the percentage of assignments that are 100 complete Process A sequential series of tasks activities decisions and events that generate a product or service 252 Transforming Design and Construction A Framework for Change

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Process Map A flowchart identifying all the activities operations steps and work times for a process Process Owner The individual s ultimately responsible for the process the Director Manager or Supervisor of the department Promise The action taken by a speaker Performer to commit to a listener Customer to take some action to produce a mutually understood result Conditions of Satisfaction by a definite time in the future See Reliable Promise Pull A method of advancing the wherewithal necessary for work when the next in line customer is ready to use it A request from the customer signals that the work is needed and is pulled from the performer Pull releases work when the system is ready to use it Push An order from a central authority based on a schedule advancing work based on central schedule Releasing materials information or directives possibly according to a plan but irrespective of whether or not the downstream process is ready to process them Pull Plan A plan for executing a specific phase of a project using a pull technique to determine hand offs Typically it is prepared by the team actually responsible for doing the work engineers architects owners designers for a design phase designers specialty contractors GC for a construction phase The team members start at the conclusion of the phase and work backwards at each step identifying the requirements to declare a chunk of work complete and their needs to start that chunk Many times it is performed by pasting descriptions of the chunks of work on a wall establishing durations and efficient work flow pattern and then capturing the final solution in Visio or project management software GLOSSARY 253

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Quality Conformance to a customer s valid and agreed upon Conditions of Satisfaction Request The action taken by a speaker Customer to ask a listener Performer to take some action to produce a mutually understood result Conditions of Satisfaction by a definite time in the future Reliable Promise A promise made by a Performer only after self assuring that the promisor 1 is competent or has access to the competence both skill and wherewithal 2 has estimated the amount of time the task will take 3 has blocked all time needed to perform 4 is freely committing and is not privately doubting ability to achieve the outcome and 5 is prepared to accept any upset that may result from failure to deliver as promised Root Cause Analysis A systematic method of analyzing possible causes to determine the root cause of a problem Also see 5 Whys Set Based Design Once bubble diagrams are defined set based design begins Drawings begin to show room shapes door locations and defined people and material flow Drawing options for room and flow are provided so the client can choose the best of each option as they are developed by the architect Set based design allows for commitment to a specific solution to be postponed allowing designers to consider multiple alternatives for longer than is typical A design team can review sets of design alternatives available to each team participant integrate these sets to find compatible combinations for the project as a whole and weigh inputs from several project participants at the same time 254 Transforming Design and Construction A Framework for Change

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Spaghetti diagram or spaghetti chart A map that shows the current layout of operations and the path taken by people the product or the service as it moves through the process or processes often resembling a plate of spaghetti Standard Work Instructions SWI One of the most important Lean tools It establishes the best current sequence for each process It should be routinely evaluated updated and improved Standard work reduces chaos achieves consensus supports creativity enables job rotation stabilizes the process incorporates visual management and provides a baseline for improvement It is the best way that we know how a process should work currently Storm Clouds Problems associated with the current condition Any reasons for delay or failure to move onto the next step in the process could be considered storm clouds Target Cost The cost goal established by the delivery team as the target for its design and delivery efforts The Target Cost should be set at less than best in class past performance The goal is to create a sense of necessity to drive innovation and waste reduction into the design and construction process Target Value Design A disciplined management practice to be used throughout project definition design detailing and construction to assure that the facility meets the operational needs and values of the users is delivered within the allowable budget and promotes innovation throughout the process to increase value and eliminate waste time money human effort Total Productive Maintenance TPM A consistent system established for maintaining and servicing equipment that minimizes downtime i e establishing a regular preventative schedule before there are equipment breakdowns GLOSSARY 255

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Value or value added time or tasks Tasks or activities that the organization performs that the customer is willing to pay for It is a step required to make the product or service function properly when used or experienced by the customer or patient Value Stream Map A picture map of the entire process being studied includes both material product service and information flows and includes both value added and non value added activities It is a tool used to identify waste within the process and identify areas of improvement It shows values information like timing of steps and numbers to show objectively where improvements can be made Variance When an assignment is not completed as stated it is considered a variance from the weekly work plan Variability The range of work completed each day or week Visual Management Using visual cues to assist with Standard Work instructions a visual workplace is a non verbal method of sharing information Everyone is made aware of the status of the work and is easily able to spot abnormal conditions Could be signage for patients or tape on the counters to signal that the next step in the process needs to be done Voice of the Customer Voice of the Customer is a term used to describe customers needs and perceptions of a product or service This is necessity for understanding the best way to meet customer or patient s needs Waste Defined in the eyes of the patient customer anything that doesn t add value to the final product or service i e unnecessary movement of people items or information The 8 Types of Waste are defects corrections overproduction waiting not using employee skills underutilization transportation movement inventory motion and excessive processing 256 Transforming Design and Construction A Framework for Change

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Weekly Work Plan WWP The commitment level planning document of LPS A list promised task completions agreed upon by the Performers The WWP is used to determine the success of the planning effort and to determine what factors limit performance All the activities shown on the 6W LAS for the current week are included on the WWP In most cases they are expanded to include more detailed assignments that allow coordination between the different Performers to occur at a Weekly Work Planning Meeting Weekly Work Planning The process by which the Last Planner establishes the plan for the coming period Work Flow The movement of information and materials through networks of interdependent specialists Workable Backlog An activity or assignment that is ready to be performed but is not assigned to be performed during the active week in the WWP If the team agrees that performance of this activity will not hinder other work then it can be placed on the list of Workable Backlog as part of the WWP Completion or non completion of these activities are not recorded or counted in calculation of PPC A reasonable amount of Workable Backlog allows Performers who are stopped from doing their assignments on the WWP or finish them early to continue work without causing harm to others thus maintaining a reliable work flow An example could be assignments that have met all quality criteria except that some must yet satisfy the sequence criterion by prior execution of prerequisite work already scheduled Other backlog assignments may be performed within a range of time without interfering with other tasks Example Those spare parts lists don t have to be completed for three months but it won t harm anything if they are produced earlier so use them as fallback or fill in work when needed Work Balancing Level Loading Creating a more continuous workflow by ensuring that one step in a process is not causing a delay This is about ensuring that each step in the overall process contains similar amounts of work so that no one is overburdened and no one is waiting Everyone is working together in a BALANCED fashion GLOSSARY 257

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Simulation Game Lean Concept Illustrated 5S Sort Straighten Standardize Shine and Sustain Standardization Continuous Improvement Airplane Simulation Waste Inventory buffers and Kanban Kaizen and work cells Communication Batch size BBQ Pull Pull Planning BEER Lean Manufacturing Issues with collaboration in traditional supply chain Build Roads Team definition balancing collaboration competition Choosing by Advantage Visual and transparent decision making Cocktail Napkin Communication through graphic sketches Collective Kaizen and Standardization Colored Blocks Last Planner System Delta Design Communication collaboration Dot Game Single piece flow batching work structuring definitions of quality value added Hacky Sack Innovation vs continuous improvements stretch goals solving a problem without a solution in mind collaboration LEAPCON Game Pull flow small batch size multi skilled workforce Mr Potato Head Plan Do Study Act Magic Block Collaboration leadership communication Multi tasking Name Game Push vs pull Flow WIP WIP limit impact of task wwitching Nuts and Bolts 5S and visual control OOPS Game Planning 260 Transforming Design and Construction A Framework for Change

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ORANGE Negotiations Game Group competition and discussion Parade of Trades Dependence and variation batch size and continuous flow PPC trust and reliability Pass the Pennies Batch sizing Single piece flow continuous flow multi tasking Play Catch Kaizen communication Red Bean Continuous improvement variation motivation Silent Squares Collaboration Optimizing the whole over parts SIMLEAN Web based discrete event simulation healthcare stakeholder engagement Six Thinking Hats traditional vs parallel thinking Target Value Design Importance of pulling design to client s financial resources Tower Game Pull scheduling Turn the Tarp Collaboration work together communication Villego Last Planner System Virtual Construction Simulation Traditional construction construction management waste identification optimization push planning Win as Much as You Can competition and collaboration Writing Game Multi tasking Please refer to the LCI website to access the matrix www leanconstruction org simulation SIMULATION MATRIX 261

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LEAN CONSTRUCTION INSTITUTE Lean Construction Institute LCI is a non profit organization founded in 1997 The Institute operates as a catalyst to transform the industry through Lean project delivery using an operating system centered on a common language fundamental principles and basic practices With over 200 corporate members representing the Owner Designer General Contractor and Trade Partner communities LCI is a voice for industry LCI sponsors programs to assist members on all stages of their Lean journey LCI Vision Transform the built environment through Lean implementation Goal Increase stakeholder satisfaction and project delivery value LCI Mission The mission of LCI is to transform the built environment through Lean implementation Lean theory principles and techniques taken together provide the foundation for a different more collaborative and more effective form of project management Lean design and construction represents a transformational way to design and build capital facilities The Lean approach generates significant improvements in schedule with dramatically reduced waste particularly on complex uncertain and quick projects Objectives Demand Create demand for Lean Knowledge Create and deliver standard building blocks for Lean Value Establish metrics for value and satisfaction Capacity Create your capacity for learning and sharing better practices For more information on Lean Construction Institute visit www leanconstruction org Lean Construction Institute 1400 N 14th Street 12th Floor Arlington VA 22209 ABOUT THE LEAN CONSTRUCTION INSTITUTE 265

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ORDER ADDITIONAL COPIES For additional copies of this publication please contact Julia Shellhouse LCI Administration Manager jshellhouse leanconstruction org or 703 387 3050 Unit price 45 LCI Corporate Member discounts available We Invite You to Join LCI We cordially invite your firm to join us in the movement to transform design and construction through the concepts tools and techniques of Lean project design and delivery Lean can benefit your organization and personnel whether you are an owner organization a contractor a design firm or one of the skilled trades Through our regional Communities of Practice events the website and other benefits such as all expense paid training for new corporate members we are working to transform our industry by making a difference In short supporting and participating in LCI provides corporate member companies with the foundation for a sustainable competitive advantage For more information on LCI membership please contact Ilene Goldberg LCI Manager of Membership and CoP Relations igoldberg leanconstruction org or 703 387 3049 For more information on Lean Construction Institute visit www leanconstruction org Lean Construction Institute 1400 N 14th Street 12th Floor Arlington VA 22209 266 Transforming Design and Construction A Framework for Change

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TRANSFORMING DESIGN AND CONSTRUCTION A Framework for Change A diverse set of contributors have collaborated to create this Framework for Learning based on the transformative projects and experiences of their Lean practices They span the breadth of the industry owners designers builders specialty contractors educators and consultants The papers presented in chapter format are intended to encourage discussion learning and experimentation They alone will not offer sufficient knowledge to implement all of these concepts They will however help direct readers further along their learning journey Pick a topic distribute the chapter and discuss how to apply it to your situation Then contact LCI with your comments and suggestions for continuous improvement Lean Construction Institute Lean Construction Institute 1400 North 14th St 12th Floor Arlington VA 22209 USA www leanconstruction org