Lean & 5S' in Construction #16 Nov 2006

***************** Attack the Waste of Transportation
This is the waste of moving materials or goods. Though often necessary, any time material or tools are moved it does not usually add value. In construction unless one is able to fabricate while transporting the material to the job, nothing is changed during the movement to add value. Sometimes the material is damaged while being transported, resulting in more waste. Transportation waste happens when we move material around the shop; when we load it on the truck or trailer; when we haul it to the jobsite; when we unload it; and when we move the material from the yard lay-down area to the installation point.
This type of waste is increased by poor site or yard layout; by the lack of an organized system for storing or staging the material; by poor logistics planning and/or by receiving material too early. While it may be necessary to transport material from the yard to the field because we can’t move the shop to the job site; we should look for ways to minimize transportation of material and tools whenever possible.

In the shop this waste can include moving equipment closer to each other so we don’t need to put the material on carts or rolling tables. We may need to relocate the tools and storage racks so we don’t have to walk across the shop to retrieve something.

In the field we can look at reducing touch points, meaning the number of times we touch the material before installing it. Instead of central lay-down areas, we can use zone drop offs that are closer to the installation area. I have personally seen how using drop-off points can reduce material handling time by 4%. Do not deliver the material to the job until it is needed thus avoiding the crew time to off load the material in the job lay down area.

The office is also a ripe place to reduce this waste. Use a spaghetti chart to map the flow of a document such as a material request, purchase order, change order, safety report, time card or invoice. Look for ways to minimize flow and touches.

**************** 5F’s for Life
We have the 5S’s and now we have the 5F’s thanks to George Hedley, they are what’s important in life: 5 F’s: family, friends, faith, finances, and fun. While doing Lean, don’t forget these five.

***************** Last Planner System * – Measuring PPC
PPC is the Percent of Planned (tasks) Completed. It is a measure of what the crews actually completed compared to what the Last Planner had intended (planned) for the crews to do that week. PPC is a better indicator of a crew’s productivity than other metrics because most crews are as productive as they can be, given they have the opportunity to perform. They are less productive mostly because there are constraints that prevented the work from being done. While the experts do not agree if PPC can or should reach a consistent 100% level, a desired level for PPC would be in the 60% to 80% range. This comes by following the Last Planner System of doing a good job of making work ready to be done using the look-ahead plan and then putting those quality work assignments on the weekly work plans and following the plan. Most crews typically start out performing at a less than 50% weekly PPC and with practice in following the method, they can improve. Reliability comes as the crews perform consistently at 60% or above.

To calculate PPC, look at the weekly work plan at the end of the week and mark each task that was planned to be performed that week as done or not done (yes/no). The PPC percent is the total of all tasks that were done, divided by the total of all tasks (done or not) that had been planned to be completed that week. For example, if the weekly work plan had the crew doing 10 work assignments and seven were completed, PPC would be 7/10 or 70%.

What about work that the crew had to do and did finish and was not identified on the weekly work plan? Even though this work was completed during the week, it does NOT count in the PPC calculation. That is because it was not "planned" work. If work was not on the weekly work plan prior to starting the week, it does not count as completed work. If started but not completed, it still does not count in the total work to be done that week. So any work not included in the weekly work plan is not counted at all and neither hurts or helps the PPC calculation.

What about workable backlog, does it count? Workable backlog does not count in the PPC calculation because it too was not planned to be completed that week, it was listed for a "rainy day."

You might note that recording unplanned work, which for whatever reasons had to be done, on the weekly work plan is advisable, as it serves as a record of what was done that week. It may be used for constraints analysis and even change order documentation. But it does not replace a change order log or required documentation process.

Constraints analysis takes place at several levels and consists of reviewing the reasons why work was not completed as reported on the weekly work plans. These reasons are also reported on the variance report. The constraints can be grouped into categories such as the following:
Safety – pre-task plan and receiving supervisory approval
Contract / C.O.s - Original Contract or Approved Change Orders, Insurance Certificates in Place
Design - Contract Drawings, Engineering Drawings
Submittals - Submitted & Approved Shop Drawings
Requests for Information (R.F.I.) - Submitted & Answered
Materials - On-site or Confirmed Delivery Dates
Labor - Available & Qualified Manpower
Equipment - On-site or Reserved
Prerequisite Work - Tasks that must be completed prior to activity
Space - Available Storage and Working Areas
Those not fitting one of the categories are put into an "Other" group.

The 1st level of analysis is for the foreman to look at each constraint and ask, "What actions could be taken to remove or prevent this constraint from happening to us again?" If possible, the foreman should take actions to deal with the constraints at his/her level.

In many cases the foreman does not have the knowledge, time or authority to remove the constraints. The 2nd level analysis is done during the weekly coordination meeting. This involves other foreman, the superintendent and the PM. The same question is asked: "What could be done to remove or prevent this constraint from happening to us again?" Action should be taken to address the constraints.

Sometimes constraints can be removed or controlled by field supervision, but sometimes the solution is not within their control. That doesn't mean to not try; it means that the analysis needs to include questions about who can bring about the desired change. A typical example of what happens to many crews is that the customer requested a change to the work and this had to be done immediately, or the work had to be stopped while the change is clarified and/or detailed. While all contractors would prefer that the customer never change his/her mind; the reality is that change occurs! Aside from the need to document the change order, there's another way to think about this common constraint. Even though the last planner and his crew only heard about the change today, in most cases the customer, or at least some individuals within the customer's organization, knew the change was being consider long before it was given to the filed crew. By the appropriate supervision (Forman/superintendent/PM/Sales) working with the customer, one could gain greater visibility about the pending changes. This would allow better planning in each week's plan.

As we plan more effectively using the Last Planner System we will see constraints in a new light and can look for new ways to resolve, minimize or shield our crews from the constraint's impact. Supervision will still have to address the constraints, but if the crews are busy doing what they are skilled at, the company will be more competitive in the market.

The Lean Construction Institute (LCI) has this to add about constraints removal:
Miscoordination is the #1 source of plan variances. It is also virtually 100% in the control of the Last Planner. Let's start by examining how miscoordination arises. Coordinating action involves reciprocal promises. For instance, I say, "Let's meet at 4:00 pm." You say, "I'll be there." In this conversation we are both promising. When we keep our promises then we are in a position to move forward together. Too often, people don't take care when making these promises. They fail in some way to provide the conditions for fulfilling the promise as they made it. One usual problem is failing to allocate capacity or time to the task. Notice that any one failed promise can lead to significant upset on your project. Don't fret about all this. Make an opportunity for yourself to follow-up on constraints. Set a reminder for yourself to do it again tomorrow.
The Top Five Ways to Eliminate Miscoordination Variances
• Get reliable promises. Listen critically for the presence of all elements of reliability.
• Anticipate possible breakdowns. Prepare actions for circumvention.
• Stay engaged with the performers. Show interest and provide help.
• Pay particular attention to those actions that make work ready. Minor interruptions can result is major task variances.
• Acknowledge performers for their success and their efforts. Timely appreciation makes the difference.
* Last Planner System (LPS) is a trademark of the Lean Construction Institute.

******************* The Human Side of Lean
A new survey of employees and supervisors claims to have identified five key management practices that can predict successful lean transformation. The survey is described in a recent issue of Target, the magazine of the Association for Manufacturing Excellence. The authors are Dr. Monica Tracey, assistant professor in the Human Resource Development Department at Oakland University and Jamie Flinchbaugh, co-founder and partner of the Lean Learning Center and author of the book The Hitchhiker’s Guide to Lean.

Two versions of the survey were used – one for employees working under direct supervision, the other for supervisors and managers charged with ensuring lean practices within their departments. Each survey contained more than 60 questions. The authors determined from the responses what it takes from a management perspective to make lean work. The five variables are:
o Development of teams as a supporting structure of lean.
o Calculation and communication of metrics.
o Communication among organization members, particularly across organizational barriers.
o Communication to employees regarding their specific role in lean transformation.
o Acknowledgement and celebration of successes toward lean transformation.

This is good food for thought when considering how to make Lean part of a company’s culture instead of the technique of the month. Lean is in the DNA of Toyota employees. They have been at it for over 50 years. It takes time to install it into a company’s culture to change and it needs to change by design not default.

Source: Posted by: Lean Insider, 8/22/2006 - Copyright ©2006 Productivity Press

**************** Learning Opportunities
You may be interested in attending one of these training seminars:
• Nov. 30 - Designing and Achieving World-Class Performance in Construction – Phoenix, AZ – Sponsor: PIPE & 469 JAC, contact Cathy at pipetrust@qwest.net
• Dec. 6 – Leadership & the High-performing Contractor – Phoenix, AZ – Sponsor: Arizona Builders Association
• Jan. 25, 2007 - Lean Works in Construction – Phoenix, AZ – Sponsor: PIPE & 469 JAC, contact Cathy at pipetrust@qwest.net
• Feb. 13, 2007 - Lean Construction is not a Fad Diet - Chicago, IL, Sponsor: Chicago CFMA chapter
• Feb 22, 2007 - The 5S’s – Phoenix, AZ – Sponsor: PIPE & 469 JAC, contact Cathy at pipetrust@qwest.net
• March 22, 2007 - Designing for Customer Loyalty - Phoenix, AZ – Sponsor: PIPE & 469 JAC, contact Cathy at pipetrust@qwest.net

***************** A Quick Thought
“Project Managers do not see that their job is to improve the process and create consistent work. PM’s are masters at work-arounds and can always tear it out and do it over. But the future will be different from the past – will the PMs learn?”
Source: Jim Womack, Web broadcast May 20, 2004. Jim is the author of Lean Thinking.
This e-newsletter is written by Dennis Sowards to share ideas on the 5S’s and Lean practices especially as they are applied in construction. If you have ideas or lessons learned to share please contact me.
For more information about Lean applications to construction and especially the 5S’s contact Dennis Sowards at his office at 480-835-1185, his cell at 602-740-7271 or at his web site: www.YourQSS.com