From Broken Budget North America's Most Energy Efficient Lab Buildings

Lean Fix | Broken Budget to Championship Performance | lean-lab: "
March 1, 2016
Murray Guy

University of Winnipeg Richardson College for the Environment

By adopting LEAN project delivery our team was able to develop a unique design to target cost and deliver what we think might be North America’s Most Energy efficient laboratory project. What is amazing about this project is that LEAN enabled our TEAM to fix a $10M budget gap without sacrificing the clients commitment to delivering a signature building with high expectations for sustainability.

 58% less Energy, LEED Gold and fixed a $10M Budget gap

This was made possible by early engagement of a relational contracting team, jointly developed project requirement, collaborative decision making, open communications and early acceptance of the risks associated with getting in the ground early before we had completed the design."



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Target Value Design | An Assessment of the RCFE Project

Target Value Design | An Assessment of the RCFE Project | lean-lab:

March 2, 2016
Murray Guy

The University of Winnipeg Richardson College for the Environment project got into budget issues when project's Big Dream could not fit in the not so BIG budget. The financial reality was that there was $38.5M and not $50M that was estimated for the initial design concept. The team were then tasked with finding over $10M in our "Broken Buildings Busted Budget" reality. It just so happens that this book helped to convince the U of W to adopt a Lean Project Delivery approach, for this project.

Our team was successful in delivering this project. To see how we faired , we are going to compare our approach to Target Value Design best practices outlined in an article by Glenn Ballard. Glenn Ballard (2011) Target Value Design: Current Benchmark. Lean Construction Journal 2011 pp 79-84 www.leanconstructionjournal.org

Introduction
The University of California, Berkeley’s Project Production Systems Laboratory periodically publishes a description of the current benchmark in each project management process that is a subject of research.

In the building sector, it has been customary for architects to work with customers to understand what they want, then produce facility designs intended to deliver what’s wanted. The cost of those designs has then been estimated, and too often, found to be greater than the customer is willing or able to bear, requiring designs to be revised, then recosted, and so on. This cycle of design-estimate-rework is wasteful and reduces the value customers get for their money. Cost has been an outcome of design.


The following is an assessment of the process based upon this paper

Some of the project constraints that were non-negotiable were that this needed to be a signature high performance sustainable building, incorporate three science departments and meet the needs of a tight budget with high expectations on value and an aggressive schedule. Ideally the feasibility of the project is determined early in the project, ours was not. We needed to fix a budget with a project on the critical path to a two-year occupancy, with no design to meet budget. This was our challenge!

Once we had all of the key trades on board we rolled up our sleeves, set the target, defined the constraints and prioritized what represented value for the U of W stakeholder group. There needed to be an understanding and commitment to the budget as there was no pot of Gold at the end of the design process to top up any budget gap.

NO MORE MONEY | No Hidden Contingency to Save the Day"
To continue with full assessment

For training on Lean Lab training or Lean Team consulting services feel free to CONNECT with us

Murray Guy

 

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How to Fix a Broken Budget and go GREEN

How to Fix a Broken Budget? | lean-lab: "
October 19, 2016
Murray Guy

At the tender opening there were no smiles as the lowest bid was $2.2M over on a $7.5 budget. To determine if we could fix the BROKEN BUDGET we assembled the team and quickly determined that the wood structure was the main issue.

Our contracting team were able to save $1.5M by changing to a concrete structure and found another $100k in value management alternatives. The balance of $600k was taken out of the $750k contingency. This left only $150k to deliver a $8.2M project and $50k of this was needed for environmental cleanup.

Can a challenging LEED Gold project be delivered with a $100k Contingency?

This project is included as one our LEAN case studies as it demonstrated WHY Lean Project Delivery can be applied at any stage of a project and HOW it can be effective delivering projects to budget with low contingencies. With the right team we not only fixed a Broken Budget but also proceeded to deliver a Saskatchewan’s first LEED project with a $100k contingency. When the TEAM committed to delivering the project they knew there was no more money and worked to deliver an amazing project for the target cost with minimal change orders.
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Recognizing Lean to be GREEN Pioneering Efforts in Canada

Recognizing Lean Project Pioneering Efforts in Canada | lean-lab: "Recognizing Lean Project Pioneering Efforts in Canada
October 19, 2016
Murray Guy

 

In 2008 the Churchill Northern Studies Centre was excited to announce the design and planning of a $15 million facility upgrade is underway.  “Integrated Designs Inc., a Saskatoon-based company with an office in Winnipeg, has been hired to coordinate design and to provide comprehensive project management for the duration of the redevelopment.”  

“We’re excited to take on the role of project managers for the CNSC and partner with an organization that is equally excited about developing a high-performance, practical, sustainable building project and utilize a lean and more integrated team based approach to delivering projects in Canada” says Murray Guy, founder of IDI a firm pioneering Integrated Project Delivery in Canada.

After reading the book “Broken Building Busted Budgets” our sponsor Michael Goodyear and the Executive team agreed to try the Integrated Project Delivery (IPD) approach based upon the fact that it creates better value, delivers projects at less cost and risk.  It also helped to meet the challenging Infrastructure Funding spending requirements.

Lean Project Delivery works because it brings together people, systems, and business practices into a process that harnesses the talents and insights of all participants. The process increases value to the Centre, by reducing waste and creating efficiency in work flow.  One of the top priorities for this project was also to achieve extremely low operating costs as the CNSC needs to cover operating costs as no additional funds are available."



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Lean to be 'GREEN' | lean-lab

Lean to be 'GREEN' | lean-lab: "

Lean to be 'GREEN'
October 20, 2016
Kathleen Lausman

Traditional design and construction practices are wasteful and fall short on value to the Owner. 

Avoidable wastes equate to 50-65% of a traditional project cost while another 25-35% is unavoidable waste inherent in processes that are required to support design and construction such as accounting. By contrast, the actual value produced in a traditional design and construction project is a mere 10%.

Figure 2: Waste in Building Industry

In short, creating waste is not a sustainable practice.

The good news is the building industry is improving through Lean Project Delivery principles and methods. Lean Project Delivery is based on the Toyota system used in manufacturing.

While Lean Project Delivery has been in practice in the US and a number of European countries for the past two decades, it is a relatively new practice in Canada that is showing impressive results toward sustainability - increasing value through waste reduction or elimination.

Lean design and construction methodology works to minimize the waste of materials and labour efforts resulting in the generation of greater value. The most effective ways to satisfy Owner requirements define value.

“Norman is Broken. There is a better way,” says Dennis Cuku, owner and visionary for the Mosaic Centre.

Projects like the Mosaic Center in Edmonton, Alberta have achieved high sustainability targets in both the processes of project delivery and the resultant facility performance through the Lean Project Delivery approach. The five main Lean principles applied on this project: indentify value; map the value stream; create flow; establish pull; and seek perfection. Lean methodologies reduced waste, increased value and delivered a 'net zero' energy facility three months ahead of schedule and 3% under budget!

The Mosaic Centre is the first triple bottom line commercial building incorporating three dimensions of an organization’s performance: social, environmental and financial.

[Review details of this Lean Integrated Project Delivery at www.themosaiccentre.ca.]

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LCI-C Rolls out Lean Project Facilitator Certification Workshop in Saskatoon

lean-lab | Single Post:


The Saskatoon Community of Practice organized and delivered the first Level 1 Lean Project Delivery Fundamentals course and participants will be pilot testing the exam and certification process. 

Murray Guy of Lean Lab designed and presented the first level course with the simulations facilitated by Ron Cruikshank and Karen Chovan, members of the Lean Team, a coaching and training group. The three hour LPD 101 Lean Project Fundamentals Course was well received with fifteen participants including two members of the LCI-C board, Heather Morgan and Ken Smith. The work shop included: 

The Business Case for Lean Project Delivery
Why Lean? 
What is Lean? 
How Lean improves Project Performance as demonstrated on five case study projects 

Introduction to Lean Principles and Practices 
Value, Flow and Efficiency 
Learning to See and Eliminate Waste 
Creating Flow and Eliminating Variability with Hands On Simulations (Airplane Game, Dice Game) 

A high level overview of Lean Project Delivery Systems 
Last Planner System 
Target Value Design 
Pull Planning

Murray Guy
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Canada's own Lean Project Delivery Certification Program | lean-lab

Canada's own Lean Project Delivery Certification Program | lean-lab: "Canada's own Lean Project Delivery Certification Program
October 20, 2016
Murray Guy | Lean Lab

LCI-Canada is rolling out a lean training and certification program to help build Lean Project Delivery (LPD) capabilities across Canada. The program will provide training in core lean competencies and include a certification process to recognize the accomplishments of lean practitioners. Certification will involve three levels.

Level 1 Lean Project Delivery Fundamentals: Practitioners would be knowledgeable about the business case for Lean Project Delivery, lean principles and practices and have a good understanding of the systems that have been developed by the Lean Construction Institute. To become certified candidates would take courses, read suggested reading materials and pass an online exam.

Level 2 Lean Project Coordinator: Applicants will have taken second level training and developed lean competencies and implemented a number of the lean methods and systems with-in their organizations and/or on projects. The goal is to recognize the development of competencies in organizational improvement, design, construction, procurement and or supply chain management. Certification will require an exam, experience with lean methods and systems, written application outlining competencies that are supported by references.

Level 3 Lean Project Facilitator: At the facilitator level you would be expected to be able to take a leadership role in delivering a Lean Project. With successful implementation of advanced lean methods and tools you will have demonstrated success by achieving much higher levels of performance on a minimum of three projects. Lean Project Facilitators would also have completed soft skills training on leadership, team building and and establishing highly collaborative work environments. Certification will require an exam, advanced level experience with a written application outlining competencies that are supported by references.

If you are interested in learning more about the program contact Lean Construction Institute - Canada of if you would like to arrange a Lean Lab Workshop or need Lean Team Consulting

services. 

Murray Guy
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