As portrayed in the movie Moneyball, Billy Beane (Brad Pitt) the GM for the Oakland A’s implemented a performance metrics system that enabled his team to become one of most successful low budget teams in baseball! The A’s success formula is based upon finding undervalued players and building a low budget team that consistently outperforms the competition by producing more runs per dollar of payroll than any other team in baseball. The A’s have developed a “Production System” that has completely “dispelled the myth that there needs to be trade offs between Cost and Performance.”
If we were to apply this same thinking to the building industry just maybe we could eliminate the $500 Billion dollars of waste that is inherent in a very inefficient building industry. It is estimated that up to 40% of construction costs are wasted in rework, inefficiencies in labour and materials control and in translating designs to actual construction. Where there is waste, there is also opportunity and early adopters of lean practices are achieving much higher levels of performance in less time, cost and risk.
WHY LPD? The Low Price Contracting approach promotes bad behavior and inefficiency that wastes resources. The LPD approach is based upon lean manufacturing principles, eliminating waste, drastically improving productivity and building a culture of continuous improvement. In a survey conducted by AIA, the top five reasons building owners are adopting LPD are:
In this course we are going to focus on how to deliver LEAN projects for the purpose of achieving much higher levels of GREEN building performance, higher productivity all while improving the profitability of the Team.
The core idea behind lean is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources. A lean organization understands customer value and focuses its key processes to continuously increase it.
Eliminating waste along entire value streams, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems.
It improves project delivery by:
So far we learned how to create a high performance TEAM that works is a spirit of trust and collaboration to create value. In the SYSTEMS section we learned about lean project delivery processes that enable reliable productive constraint free workflow to occur. In this section we want to explore additional tools and strategies that enable teams to take their game to that next level and deliver a WOW project.
For our purpose a WOW project would be truly sustainable and respect the triple bottom line The reasoning for picking a triple bottom line approach is that according to Principle #1 of the Toyota, we need to base management decisions on long-term philosophy. For our industry that consumes much of our planets natural resources and energy we need to address sustainability for the long term good of the economy, in addition to providing great facilities that enable people to do great work and operate profitable businesses.
Addressing the triple bottom line also provides the challenge and higher purpose that is needed to motivate people to do their best work. The Mosaic Center is a fine example of a WOW project as it utilized LPD to deliver a triple bottom line project at less cost than a traditional build.
Triple Bottom Line economics:
If you are interested in learning how to facilitate the implementation of a Lean to be Green project, please contact Murray Guy for information about the next course start date. mguy@i-designs.ca
- Market advantage as industry leaders
- Managing cost predictability
- Schedule predictability
- Reducing or managing risk
- A higher degree of technical complexity is feasible
In this course we are going to focus on how to deliver LEAN projects for the purpose of achieving much higher levels of GREEN building performance, higher productivity all while improving the profitability of the Team.
Build a Lean Foundation
Eliminating waste along entire value streams, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems.
Companies are able to respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times. Also, information management becomes much simpler and more accurate.
In the best selling Lean book of all time, “This is Lean”, Niklas Modig gets to the heart of what lean is by differentiating between FLOW and RESOURCE efficiency. He demonstrates why we need to focus on the FLOW of products and services as opposed to the efficient use of RESOURCES, which can in fact introduce inefficiencies in the process.
In the best selling Lean book of all time, “This is Lean”, Niklas Modig gets to the heart of what lean is by differentiating between FLOW and RESOURCE efficiency. He demonstrates why we need to focus on the FLOW of products and services as opposed to the efficient use of RESOURCES, which can in fact introduce inefficiencies in the process.
Create a Championship Team
The essential elements to create a Championship Team are to have a project with a worthwhile purpose; hire people that are in pursuit of mastery and will commit to delivering a championship performance.
Purpose: Set challenging project requirements with a higher purpose that will rally the team to deliver their best work.
Mastery: Get the right people on the bus that are in pursuit of Mastery and up to the challenge of changing culture and process to deliver a lean project.
Commitment: Establish the level of commitment, expected behaviors and hold each person accountable with no exceptions as lack of engagement lets the whole team down.
As a Lean Project Facilitator you will want to ensure the team is disciplined in their pursuit of a championship performance. In the study of Good to GREAT companies, Jim Collins discovered that:
Purpose: Set challenging project requirements with a higher purpose that will rally the team to deliver their best work.
Mastery: Get the right people on the bus that are in pursuit of Mastery and up to the challenge of changing culture and process to deliver a lean project.
Commitment: Establish the level of commitment, expected behaviors and hold each person accountable with no exceptions as lack of engagement lets the whole team down.
As a Lean Project Facilitator you will want to ensure the team is disciplined in their pursuit of a championship performance. In the study of Good to GREAT companies, Jim Collins discovered that:
- When you have disciplined people you don’t need a hierarchy
- When you have disciplined thought you don’t need a bureaucracy
- When you have disciplined action you don’t need excessive controls
- When you combine culture with discipline you break down barriers to performance
When we get the right people on the bus we eliminate the waste of associated with hierarchies, bureaucracy and controls. When we create a collaborative environment where making commitment and keeping promises are the cornerstones of the process supervisors and managers become redundant. That is Lean!
To be effective in delivering a project or managing a business there needs to be systems that enable collaboration and productive work to occur.
Implement a System for Getting Work Done
Greg Howell and Glenn Ballard developed the LPD system in 2003. The overall goal is to implement a system that enables productive constraint free workflow. The model was adapted from the Toyota Production System by the Lean Construction Industry. The Lean Project Delivery (LPD) system addresses the short coming with traditional project delivery in that it strives to deliver the right product, maximize value and minimize waste.
It improves project delivery by:
- Involving downstream stakeholders in planning and design
- Creating cross functional teams to improve the quality of designs
- Pull techniques are used to govern the flow of materials and information
- Project management focuses on execution of weekly and daily work production
- Performance measurement is incorporated at every level and results in rapid system adjustment
Collaborate to Create a WOW Project
For our purpose a WOW project would be truly sustainable and respect the triple bottom line The reasoning for picking a triple bottom line approach is that according to Principle #1 of the Toyota, we need to base management decisions on long-term philosophy. For our industry that consumes much of our planets natural resources and energy we need to address sustainability for the long term good of the economy, in addition to providing great facilities that enable people to do great work and operate profitable businesses.
Addressing the triple bottom line also provides the challenge and higher purpose that is needed to motivate people to do their best work. The Mosaic Center is a fine example of a WOW project as it utilized LPD to deliver a triple bottom line project at less cost than a traditional build.
Triple Bottom Line economics:
- Support the well being, productivity and success of PEOPLE
- Take care of the environment so we sustain life on this PLANET
- Adopt lean practices to improve PROFIT
If you are interested in learning how to facilitate the implementation of a Lean to be Green project, please contact Murray Guy for information about the next course start date. mguy@i-designs.ca
Contact .... Murray Guy aka @Lean_tobe_Green
Online Training LEAN LAB
High Performance Building Services: Integrated Designs
NetZero Home Building: EcoSmart
Online Training LEAN LAB
High Performance Building Services: Integrated Designs
NetZero Home Building: EcoSmart
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