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LIPs Conference 2012 How the Highways Agency, England is creating the environment for integrated teams. Sue Housley B Eng C Eng MICE DMS Lean Technical Manager – Highways Agency. Coverage of presentation. Who are the Highways Agency (HA), England Ways to create integrated teams
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LIPs Conference 2012How the Highways Agency, England is creating the environment for integrated teams Sue Housley B Eng C Eng MICE DMS Lean Technical Manager – Highways Agency
Coverage of presentation • Who are the Highways Agency (HA), England • Ways to create integrated teams • Early Contractor Involvement • Category Management Framework • Lean deployment in supply chain • HALMAT ( HA Lean Maturity Assessment Toolkit ) • Examples • Lessons learnt
Executive Agency of Department for Transport. 3600 staff across 8 offices, 8 traffic control centres and 29 outstations across England. Operate, maintain and improve 7000 km Strategic Motorway and Trunk Road Network in England.(£100bn asset) Network carries 4 million vehs/day Accounts for 3% of England’s road network but carries 1/3 of all traffic & 2/3rds LGVs
Where the money goes • The Highways Agency is spending £2bn per annum operating, maintaining, renewing and enhancing the Strategic Road Network • 90% spend is with suppliers. • Of that 80% spend is with Tiers 2 & 3 suppliers (sub contract) • Important to achieve “better for less” and reduce waste.
How to create integrated teams? • Contractually : • Early Contractor Involvement (ECI) Category • Management Framework Contractual requirement to show improvement /efficiency • Back to back clauses – Target cost and risk allocation • Culturally : • use of Lean tools techniques and • creating cultural change towards • efficiency and collaboration
The relationship between Value and Lean Lean Doing the job right Value Doing the right job
Lean Deployment Strategy People Philosophy Developing Capability Leadership & Engagement Lean Deployment Improvement Engine Problem Solving Sustaining Lean Process
Delivering Value by Collaboration & Lean Deployment M53 Bidston Moss Viaduct Strengthening Scheme
Construction Challenges • Logistics • Safety • Confined Spaces • Working at Height • Rail Interface • Climate Control • Live traffic
Project Successes… Safety: No reportable accidents, AFR = 0 1,290,000 Man hrs worked, 38 Months 3 RoSPA Gold awards, Safety MST 10, Highest SHE audit scores in HA Cost: Scheme £1.6m under budget , Significant risk & opportunity savings pre-construction <0.3% Client CEs, No delay claims between suppliers Close down of commercial issues in supply chain and with client Programme: All key milestones achieved or beaten Removal of BD79 3 Months early Early contract completion including all handover documentation on day of completion Quality & Service: Handed over defect free Industry leading KPIs First Highways Construction Project to be accredited to BS11000 for collaborative working and relationship management
10% reliability improvement: Daily meeting providing central point for co-ordination Identified key items reducing reliability Team value meeting output Transparency Practical integration of tasks Lean Deployment – Production Control
Lean Deployment - Collaborative Mapping(Collaborative Planning) What we did: Facilitated a weekly collaborative planning session between Costain & the main sub-contractors Supervisors to create a joint, integrated 3 week look-ahead. Hard Benefits: Reliability of 2 weekly planned tasks improve from 22% to 77% in 8 weeks. Sustained at 79% for construction. Master programme drives lookahead targets. Only 1no trusted planning resource for all trades No claims between sub-contractors Soft Benefits: Communication and transparency markedly improved. The Supervisors trade off & make planning agreements and are focused on delivery. Pre-emptive problem solving is the norm. Trust between the trades. Collaboration & helping others is the norm. M53 – Bidston Moss Collaborative Planning
Results • 30+ % savings on 9 designs. • Several weeks and in some cases months removed from programmes • Waste identified • Construction Risk minimised. Construction input throughout and a review on completion • Repeatability – identified savings can be repeated
Why develop & implement HALMAT ? • HA wants Lean embedded into supply chain to drive efficiency. • HA wants a way of measuring S/C organisations’ maturity in Lean. • What gets measured gets done. • From a HALMAT assessment a Lean Improvement Plan provides a map of future development. • who benefits : Tax payer / travelling public/ the S/C organisations
Requirements to show lean thinking has been adopted • Strategic use of Lean • Lean leadership • Understanding customer value • Process focus • Standard work • Process control • Planning, design, development & construction • Maintenance of equipment, quality etc • Supporting infrastructure
Example – Lean Leadership(Purpose: To indicate to what degree leaders are active in encouraging Lean introduction)
Lessons learned • Valuable to engage with supply chain – senior management / training Lean practitioners/ secondees • Create Lean Demonstration projects • Measure benefits in consistent way- ROI 20:1 • Create Guides – common terminology • Hold regular Lean seminars to demonstrate what others are doing • Communicate success Knowledge Transfer Packs and Webinars • Measure CI / Lean maturity HALMAT and include in performance measures • Use the full range of tools as appropriate e.g. Lean Visual management : Collaborative Planning : Value stream mapping : Six Sigma • Engage Tier 2 - where real money is spent
Future vision • Supply chain take initiative forward and create own vision of Lean for industry • Tier 1 Supply Chain assist lower tiers to improve efficiency • HA assist Category Management Framework suppliers and key Tier 2 suppliers • Lean becomes “way we do business” and Lean maturity levels increase • Experience on Lean is shared across Supply Chain openly • HA take Lean forward internally
Summary • Scale of prize for Highways Agency (HA), England • Ways to create integrated teams • Early Contractor Involvement • Category Management Framework • Lean deployment in supply chain • HALMAT ( HA Lean Maturity Assessment ) • Changing the Culture is key !! • Client Leadership is necessary
Thank you for listening • http://www.highways.gov.uk/business/31171.aspx • Any Questions?