ECIs 21st Annual Conference 2010 & Global Construction Summit Construction Project Management Best Practice 2010

- A Springboard for the Next Decade

24 & 25 June 2010 Marriott Rive Gauche Hotel, Paris

Productivity, Supply Chain Relationships and Lean Construction

Vaughan Burnand
Immediate Past Chairman Constructing Excellence UK

My role
Lead and chair the sessions associated with the project track Provide the link between the delegate community and the Summit partners Determine the agenda for future development and collaboration between the event partners, participating companies and organisations Identify and capture leading edge project management practice Identify the current project management issues for construction professionals Determine where there may be scope for future collaboration

Agenda
Productivity Supply Chain Relationships Lean Construction

High Risk High Return

PFI Design and Build Drawing and Spec Traditional B of Q Design and Manage Management Contract Prime Cost Construction Management
Low Risk Low Return

Shape of Construction
8% of GDP But.............50% in contracts under 250k in value If you can walk and talk at the same time you can start a contracting company. Contractors only directly employ 25-33% of the work force Transient nature of the work Migrant and foreign workforce Skills Different
Cultures Conditions

Construction only has 3 parts

Work Winning

Work Doing

Getting Paid for Work Done

Saving

Cost of Change

Planning Feasibility Design Development Construction

Project Programme

Saving

Cost of Change

Planning Feasibility Design Development Construction

Project Programme

Early involvement Why?

Piping cost = 155,000 Equivalent length = 700m Piping cost = 116,000 Equivalent length = 494m

Initial GMP

Historical Reference Cost

Final GMP

Functionality optimised through VM and costs reduced through VE

Costs reduced through CI activities

Preferred bidder Bid

Lead in

Incentivised construction Final

cost

Time

Lean Construction Guiding Principles

Base your management decisions on a long-term philosophy, even at the expense of short- term financial goals Continuously identify and eliminate wastes to achieve process flow and balance of work Get quality right first time

Standardised tasks and processes are the foundation for continuous improvement and employee empowerment

Lean Construction Guiding Principles

Use visual control so no problems are hidden Adopt appropriate new technologies that support your people, processes and values Develop exceptional people and leaders who thoroughly understand and can teach others Respect your extended network or partners and suppliers by challenging them and helping them to improve

Lean Construction Guiding Principles

Go see for yourself to thoroughly understand the situation Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly Become a learning organisation through relentless reflection and continuous improvement Take ownership of risk, and manage risk, retaining the appropriate level of control

So what would lean look like on your project?

Supply Chain
Management Accreditation

Target Costing Incentives Project facilitator

PMs are too busy

Early appointment Collaborative planning

Up front and Daily

European Construction Institute www.europeanconstruction.eu