Delivering Design Through Lean Thinking for Profitable Growth

1. Delivering Design Through Lean ThinkingTapfuma Vazhure, Principal Consultant, Turner & Townsend Suiko&Antonio Freeman-Carpino, Principal Consultant, Turner & Townsend Suiko

2. Agenda

3. Introductions Name Company Role Lean experience Expectations for today

4. Agenda

5. Lean “There are four purposes of Lean improvement: Easier, better, faster and cheaper … these appear in the order of priority.” Shigeo Shingo Toyota Executive

6. Process excellence What it SHOULD be

7. Changing behaviours to deliver excellent results Why Exceptional results Profitable growth Customer value Performance • To deliver sustained business improvement both results and practices must be driven and measured. • If results are driven without being underpinned by practices (both process and behaviour) then they are at risk of being unsustainable • If tools and processes are implemented without generating the desired results then it is likely that either they are the wrong things or, more likely, the behaviours and culture has not changed • What • Exceptional practices = tools and behaviours • Measuring and challenging performance • Doing problem solving • Teamwork and involvement Results underpinned by practices

8. Performance management routine Often more than 80% on site In general the industry encourages reactive management

9. Lean philosophy To manage the business backwards from the customer’s definition of value – not forwards from your organisation and your assets • Waste (or Muda) is “any activity that absorbs resource but does not create value” (Womack and Jones) • “We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes. When they get into trouble, they even try to hire in more brilliant people.” (Ohno)

10. Lean philosophy - benefits • Profitable growth • Control costs • Generate additional profits • Through customer value • Optimise cash • ¼, 2, 20 rule (Stalk & Hout) • ¼ - Reduce lead time by 25% • 2 - Double productivity • 20 - Reduce operating costs by 20% € Margin Profitable growth Profit squeezed! Costs Time

11. Lean philosophy - timeline GETTING PAID PAY VALUE TIMELINE ORDER CASH “All we are doing is looking at the time line – from the moment the customer gives us an order to the point where we collect the cash. And we are reducing that time line by removing the non-value-added wastes” Ohno (1988)

12. Lean principles

13. 1 Excitement/Delight Features 2 5 Performance Features Basic Functional Features 4 3 Lean principles – understand customer value If truly delight – you are customer’s preferred choice Capability Poor Good Over time features reduce in hierarchy If get basics wrong - disaster

14. 1 2 5 4 3 Lean principles - identify the value stream Order processing (information flow) Operation/production (physical flow) Bottom tier Supplier Consumer Design

15. 1 2 5 4 3 Lean principles - identify the value stream

16. Three areas of value need to be understood within the organisation: Value added work – Activity the customer is prepared to/would be happy to pay for Necessary non value added work – Activity that is necessary under the present operating system Non value added work – Activities that do not contribute to satisfying the customer requirement Lean principles - identify the value stream 1 2 5 4 3

17. Lean principles - make value flow Now smooth and ensure continuous flow of the value adding work. Value added work Make it standard Necessary non value added work Reduce, simplify and if possible remove Non value added work Eliminate as a priority 1 5 2 4 3 Source: Learning to See by Mike Rother & John Shook

18. 1 5 2 4 3 Focus on time Typical value stream (assuming 100 days) Necessary but not value adding 35% Non value adding 60% Value added 5% 5 days 35 days 60 days Typical improvement focus on value adding element 40% reduction will reduce it from 5 to 3 days 5 days 35 days 36 days 3 days 35 days 60 days Lean focus on non value added 40% reduction will reduce it from 60 to 36 days

19. 95% of all waste in organisations can be categorised into 7 wastes (Taiichi Ohno’s Chief engineer – Toyota Production System) Systematically challenge the SEVEN WASTES 1 5 2 4 3 Lean principles - make value flow – 7 wastes

20. 1 2 5 4 3 Continuous Flow Lean principles – at the pull of the customer Programme Supply Customer

21. 1 2 5 4 3 Lean principles – at the pull of the customer • Customers may be external or internal (next process) • Design and deliver the programme to only make what is needed, when it’s needed by the customer (internal/ external) • The concept behind the pull system is that the follow on trade is triggered by the proceeding trade and therefore never deviates from the programme duration and sequence • Don’t start anything until it is needed and then make it very quickly

22. 1 2 5 4 3 Lean principles – strive for perfection “Where every activity performed by every person and every process adds valuefrom the point of view of the customer”

23. Agenda

24. 1 5 2 4 3 Reminder - focus on time Typical value stream (assuming 100 days) Necessary but not value adding 35% Non value adding 60% Value added 5% 5 days 35 days 60 days Typical improvement focus on value adding element 40% reduction will reduce it from 5 to 3 days 5 days 35 days 36 days 3 days 35 days 60 days Lean focus on non value added 40% reduction will reduce it from 60 to 36 days

25. Waste in Design • Break up into 3 groups • Identify value with green post its • Identify necessary but non-value adding with yellowpost its • Identify waste with redpost its

26. Agenda

27. Agenda

28. Improving design in residential housing project The problem • Programme not accurate or being followed by both parties • Issues not resolved quickly as lost in the general noise • Design consistently losing time against programme • Unclear where root cause was

29. Improving design performance The solution • Mapped design process from start to finish focusing on key areas • Lean workshops with main contractor and Design consultants • Collaborative planning workshops to develop one agreed programme • Daily and weekly measures to know level of performance • Daily review meeting between Design consultants and main contractor • Weekly performance review and detailed planning meeting

30. Daily activity dashboard

31. Improving design performance Clear understanding of performance • Agreed and ‘promised’ daily/ weekly targets • Knowledge of performance against targets • Clarity of issues to be escalated (more than 100 identified and resolved) • Quality measure introduced One source of the truth • Measures driving performance and ensuring focus • Collaborative approach but responsibilities and accountabilities clearly understood • Areas of design identified for special attention • 3 day frozen period to ensure efficient working 160% increase in issue of documents resulting in the completion being accelerated by 4 months.

32. Design in education project • Project facing potentially significant delays in the early stages of the build • Conducted analysis of the project and availability of information was the main issue • Project focused on achieving two key deliverables • Timely flow of information from design consultants and architect • Rapid identification and escalation of issues out on site whilst ensuring delivery

33. Design information • Mapped current and actual Request For Information (RFI) processes with all parties • Identified and agreed a simplified process to provide necessary information quickly • Introduced measures and trackers to determine performance levels and clarify roles and responsibility • Weekly dashboards and review meetings to clarify priorities

34. RFI process results Average RFI response time reduced from average of 40 days to less than 5 Benefits delivered • Potentially avoiding a 7 week delay to programme delivery • Direct influence on daily productivity • Process to quickly escalate and resolve issues • Visibility of issues • Tool to drive performance through measures

35. Performance and programme management Project / Programme • Ensures delivery against programme • Greater visibility of performance and hence predictability • Rapid escalation of issues • Measures on health & safety, quality and housekeeping Daily activities Daily KPIs Escalation of issues

36. Delivery productivity Benefits delivered • 2 days a week greater output avoiding potential delay of 146 days (based on 73 weeks remaining in programme) • Critical path activities are on track and projected completion date in line with PCC • Greater control, visibility and predictability • Process to drive performance through measures Achieved a step change in productivity delivering 78% of the activities against programme compared to 35%

37. Agenda

38. Operational excellence awareness - balls activity BRIEF: Pass the ball between you in the SAME order as quickly as possible

39. Agenda

40. Making a difference Reflecting on today’s workshop what are you going to do differently next week?

41. Agenda

42. Summary and close What went well? What could we do better?

43. Thank you! Tapfuma Vazhure (Principal Consultant) 07984 336399 Tapfuma.vazhure@turntown.co.uk Antonio Freeman-Carpino (Principal Consultant) 07817 829890 Antonio.FreemanCarpino@turntown.co.uk