Partnering to Cut Waste is Good Business

25%+
Waste
Value

Maximize Value…..Higher Profits

Shared Savings
8 Types of Waste
“DOWNTIME”
 Defects
Defects • Quality rejects & rework
• Claims

Defects/Construction Complete:
As high as 12 down to <1

Quality Breakthrough
1. Define what good looks like with our partners
2. Objectively look at same data
3. Mock-ups of what good looks like

Result went from >12 to <1 and everyone wins!

 Over Production
Overproduction • Excessive documentation
• Install equipment before need

Waste
Intel providing excessive
requirements &
documentation

Results # of pages
Intel went on a “Doc Diet” 40000
and so far have reduced 30000
44% pages and on our way
to achieve our 75% goal 20000
10000
0
Goal
 Waiting
Waiting • Permits & materials
• Bids, procurement process

Standard Sequence

Design Construction

GC Selection Trade Selection

Waiting

Need to eliminate waiting from critical path. We

have designed the procurement system because
we believe that’s how we are getting value.
 +1 Non-utilized talent
Non-Utilized Talent • Right job, Right Skill, Right Time
 Transportation
Transportation • Site Logistics & materials
• 10% of material cost is air freight

8” Duct
Mfg $46.35
Arizona $73.49

US
Distributor Subcontractor GC/DB
MFG

Shipping/
Duty

$107
Ireland
 Inventory
Inventory • Parts or tools in the warehouse
• Design packages

After
Before
10 days
23 days

Just in Time Delivery is optimal. What

manufacturing calls Theory of Constraints . Results
in 57% duration reduction.
 Motion
Motion • Site Logistics- lunch tent location
• Material staging

Before After
17% 17% 11%
57% 11%
Value Add Breaks Value Add 32% NVA
NVA VA
VA 57% Breaks
72%

Breaks Testing
11% 0%
Rework
Discussio
Waiting 0%
nRetrievin
21%
2% g
Materials
Moving
Safety
0%
3%
1%
Set-up
Observati
1%
on
VA Cleaning
0%
57% 4%
Consult
Diagram
Measurin
g 0%
0%
 Extra Processing
Extra Processing • Checkers checking checkers
• Request for Information

30.00

25.00

20.00
RFI per $M

15.00

10.00

5.00

-
Project Size $M

2 Bright Spots with RFI/$M=1