WHY we need to Fix the Construction Industry | Murray Guy

Customers will first buy WHY you are in business. In the building industry customers are looking for VALUE that our industry fails to deliver on most projects due to inefficiency and bad behavior.

With the right team everyone wins. The Owner gets better VALUE! The Team benefits from higher PROFIT margins! The Planet wins with much higher levels of sustainable PERFORMANCE!

WHY Not adopt a more collaborative and productive approach like Toyota that has enabled them to become 3X more profitable than their closest competitor? 

There is evidence that our industry is inefficient and that productivity has been declining. In the Book Broken Buildings Busted Budgets we learn that this inefficiency costs the North American Building Industry, $500 Billion per year. When there is waste there is also opportunity for companies to take advantage through innovation, integration and the adoption of new processes.

In our case study projects, we explore how lean can be applied to any type of project to fix broken budgets or to take a new project to much higher levels of performance. With lean practices we can deliver exceptional value at less cost, with less stress and with much smaller contingencies.

Where there is waste, there is also opportunity to achieve much higher levels of performance. The Lean Construction Institute (LCI) has developed a system that enables TEAMS to deliver project with 200% improvements in productivity, 40% reductions in capital cost and 30% reductions in operating costs.

In a survey conducted by AIA, the top five reasons building owners are adopting Lean Project Delivery (LPD) are:

1) Market advantage as industry leaders

2) Managing cost predictability

3) Schedule predictability

4) Reducing or managing risk

5) A higher degree of technical complexity is feasible

With government and business leaders motivated to improve productivity and address climate change, LPD is a solution that does both. Industry leaders are able to deliver buildings that have #NetZeroEnergy use at no additional cost as demonstrated on NetZeroEnergy projects like EcoSmart Prefab Green home, Okanagan College and the Mosaic Center.

If you are interested in becoming a leader in the Lean Construction market consider joining the Lean Construction Institute - Canada or arrange for a workshop or training at Lean Lab.

Murray Guy aka @Lean_tobe_Green | mguy@i-designs.ca

Integrated Designs  | EcoSmart  | Lean Lab   

You made it to the end ... Have an Awesome Day

http://www.slideshare.net/mguy/moneyball-high-performance-at-less-cost

How Lean is your Project?

The adoption of Lean principles and practices can be applied to any project. The level of performance improvement will be dependent upon the level of team integration and how well the team collaborates and implements lean methods and strategies.

Through a workshop process led by Professor Paolo Tombesi, Chair of Construction at the University of Melbourne and Markku Allison, resource architect for AIA, they determined key markers that define a lean and fully Integrated Project Delivery (IPD) team.  They organized the characteristics into Markers unique to IPD projects and the key strategies employed and published these in an  IPD Case Study 

They are as follows:

IPD Markers

• Relational Contracts 
• Protection from litigation 
• Aligned project goals (Jointly Developed Project Target Criteria) 
• Informed and balanced decision-making (Collaborative Decision Making) 
• Open Communication 
• Risks Identified and Accepted Early 

IPD Strategies

• Key Participants Bound Together as Equals (Multi-party Agreement) 
• Budget & create team for design intensive work 
• Early contribution of expertise (Early Involvement of Key Participants) 
• Pre-existing relationships between parties 
• Champion/ Facilitator (Leadership by All) 
• Shared Financial Risk and Reward Based on Project Outcome 
• Liability Waivers between Key Participants 
• Fiscal Transparency between Key Participants 
• BIM - virtual rehearsal of construction and ongoing constructibility reviews 
• Lean Construction processes 
• Co-location 

They also studied the motivations for selecting Lean Project Delivery:

• Market advantage:  IPD may give the firms valuable experience upon which to market themselves as industry leaders. 
• Cost predictability: All projects would like to meet budget, however, for some the predictability of cost is a notably driving factor. 
• Schedule predictability: Similar to cost, all projects share the goal of meeting their planned schedule, but for some projects this is a major factor. 
• Risk Management: Reducing or managing risk can be tied with cost or schedule, but also may include transactional risk inherent to project type, site or other conditions. If risk management is a critical factor, the increased communication in IPD may be of particular advantage. 
• Technical Complexity: A high degree of complexity will usually demand integration of expertise and require a level of coordination that is achievable in an IPD environment. 

Collaboration and integration can occur with any project delivery method, however, IPD sets up structures that make it more likely to occur than not.  

For more information on Lean Project Delivery, you can arrange for a work shop or take a course at LEAN LAB .  If you would like help implementing lean on your project, Integrated Designs can join your team as a facilitator.

Murray Guy @Lean_tobe_Green
Mguiy@i-designs.ca

Lean Lab | Integrated Designs | EcoSmart 

How to Fix a Broken Budget with Target Value Design

At the Richardson College for the Environment project we turned the design process on its head as we needed to try and meet the expectations of project stakeholders that were initially told to “Dream Big” on a not so BIG budget. The financial reality was there were only funds for a much smaller dream of $38.5M and not the $50M that was the price tag for the initial design.

Our team was tasked with finding over $10M in savings, as there was no money to be found to build the dream. We were living the "Broken Buildings Busted Budget" reality which was the book that was used to convince the U of W that we needed to adopt the Lean Project Delivery approach.

As a framework for assessing how well the process worked for the design phase, I have adapted an article that was written by Glen Ballard one of the founders of the Lean Construction Institute. My reason for doing this is that our team delivered an exceptional project and I was interested in knowing how close we came to implementing what would be considered best practices for Target Value Design (TVD). 

Project Summary

Target Value Design together with a Relational Contracting enabled the RCFE team to fix a BIG Dream project on a Smaller Dream budget and deliver an exceptional project that did achieve the project requirements within amazingly tight time and budget constraints. The team needed to get started with shoring and foundations before the project was designed, deliver a $43.8M 70% laboratory building project with 65 fume hoods, vivarium, green house with only a $750,000 contingency. This was achieved which is amazing considering that $450,000 of the contingency was used on one code related issue that emerged on an interpretation of stairwell pressurization to meet fire code. 

Our team exceeded the LEED Silver requirements, Got Gold and through Innovation and Imagination in Laboratory design deliver one of North Americas most energy efficient laboratory projects at 58% less energy that MNECB.

For the full article Lean Lab Blog

For a workshop on Target Value Design 

Lean-Lab | Target Value Design | An Assessment of the RCFE Project: "Target Value Design | An Assessment of the RCFE Project

March 2, 2016

Upon review of the TVD process, our team did pretty darn good!

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