Lean Construction for Highways England’s Economic Success

1. Lean construction summit October 2019

2. England’s economic success depends on the Strategic Road Network

3. Cultures and Lean • Mission – Connecting the country • Customer Proposition – We care about your journey • Values – Teamwork, Ownership, Integrity, Passion, Safety • Imperatives • Safety • Standard processes create a safer working environment. • Lean visual management promotes safety conversations and focus on improvement activities • Customer Service • Lean delivers value based on customer requirements • Lean reduces construction time and therefore reduces impact on our customers • Delivery • Our programme of work has increased significantly and will continue to do so over the next five years • No corresponding increase in resources • This creates the demand for new ways of working and new approaches

4. RIS1 (2015-2020) – Lean in everything Changing the social context of roads Enhancements for our neighbours Fundamental delivery

5. Sector Productivity Challenge Productivity • The UK construction sector has been left behind, with an overall growth of just 0.1% since 1947 (compared to 3.5% in manufacturing) • The UK Construction industry continues to lose ground - particularly when compared to manufacturing and aerospace Manufacturing Year Construction McKinsey Global Institute, Feb 2017

6. Highways England – our RIS1 LEAN challenge The transition from Highways Agency to Highways England has almost doubled our delivery requirements. To meet these we are: • finding more innovative ways of working, utilising new technologies and approaches • improving productivity – there is a worldwide shortage of skills in construction and we need to work smarter to meet this challenge • embracing a continuous improvement mindset – always looking for better ways to do things.

7. Highways England’s Lean Challenge RIS 1 Target • At the start of the RIS 1: • We agreed a challenging efficiency target of £1.2bn. • We set ourselves a target to deliver £250m (20%) of this using Lean deployment. • Ultimately, we aim to change the way the sector works – collaborative planning, performance boards, active problem solving and a focus on customer value

8. Highways England’s Lean Challenge • To achieve this we have: • taken a leadership approach with our suppliers • taken ownership and defined what lean deployment looks like for our sector • invested our own resources in building the capability • coached and supported our suppliers and assessed their abilities • changed the way the sector is working • Our Roads Academy is developing leadership behaviours throughout Highways England and our supply chain. These are strongly supported by the tools and techniques embedded in our Lean continuous improvement methodology

9. Improving our incident clearance rates • We have a KPI target of 87.5% clearance of incidents within an hour • Visual performance management and problem solving techniques engaged and empowered teams • Data based decision making contributed to the team achieving a greatly improved clearance rate to improve our customers’ journey Lean intervention 90% 87.5% 85%

10. Lean – A14 Cambridge to Huntingdon • The only £1bn+ UK government sponsored infrastructure project on budget and on schedule • Flagship for Lean deployment • Lean is at its core • Techniques used throughout supply chain tiers • Visual management throughout • £20m efficiencies currently forecast • e.g. - Archaeology: • Improved their approach to permit to dig • Improved use of rare archaeological skills • Collaborative Planning and visual management fully embedded

11. Overnight resurfacing productivity • Overnight resurfacing productivity has increased from 240 tonnes per shift to 325 – an increase of 35% since 2015 • We brought together everyone involved, our tier 1, 2 and 3 suppliers as one team • Together we increased the amount of time the paver was working (the value adding activity) • We have saved around 5500 shifts so far • Workers are less exposed to risk • Challenging ourselves to improve further

12. RIS2: We are in a great place… We are really proud of the £25.3 billon that we have to invest in our roads for our customers It is a great deal and a huge vote of confidence from the Government in our ability to deliver RIS2 is cementing the roads reform agenda With this comes challenges and opportunities

13. We have set more ambitious performance targets for RIS2 to target six outcome areas • Meeting the needs of the customer Improving safety for all Providing fast and reliable journeys A well maintained and resilient network Achieving efficient delivery • Being environmentally responsible

14. Change and transformation in major projects – how we procure and partner • Smart motorway alliance • Regional Delivery Partnerships • Integrated delivery team – complex infrastructure • Competitive dialogue and new integrator role for Tier 1

15. Change and transformation in major projects – how we deliver RIS2 RIS3 RIS1 Run the Business Hardwired Design to Cost Continuous Improvement Improve the Business Transform the Business Innovation Re-applied Digital by Default Embedding MP Change Embedding Customer Service One Network Project Performance Accelerator

16. The role of LEAN across Highways England in RIS2 and beyond • Moving Highways England from ‘good to great’ • Moving to easy use of Lean tools in the world of Apps • Leveraging digital capability to drive out efficiency opportunity • Turning silos of good practice into an enterprise-wide consistent approach • Making Lean day to day for everyone – not the preserve of task forces or intellectuals • Empowering our people to make great decisions and take action