http://www.ipsdb.com/lean/news en mwitwicki@booyant.com Copyright 2009 2009-07-08T00:07:05+00:00 http://www.ipsdb.com/index.php/lean/updates/test_your_lean_iq_14/ http://www.ipsdb.com/index.php/lean/updates/test_your_lean_iq_14/#When:22:20:19Z IQ Quiz Announcement 2009-07-10T22:20:19+00:00 http://www.ipsdb.com/index.php/lean/news/why_think_lean/ http://www.ipsdb.com/index.php/lean/news/why_think_lean/#When:00:07:05Z There’s a lot of talk about “lean” these days, and you may be wondering why. In a nutshell, if you were an auto manufacturer right now, would you rather be GM or Toyota? Toyota gave birth to the concept of lean through its Toyota Production System, an enterprise-wide mind-set aimed at reducing wasted time, money and effort while improving the quality of its products and the value it delivers to its customers. Toyota uses specific concepts, tools and techniques to drive continual improvement throughout all its processes. Today, Toyota is recognized as the world’s top automobile brand—and one of the most valuable brands in any industry. GM has… well, you’ve read the headlines. Applied to a capital project, rather than a car, thinking lean still results in better long-term value than traditional approaches. It may not always look like the lowest-cost approach in the short run, but it delivers the best value. Toyota is not the price leader in the market, but consumers choose the brand for quality, reliability, overall lower cost of ownership… it meets their needs at a fair price. A successful capital project should do the same: it should meet the owners’ needs and support the organization’s goals. A lean service provider may not come in with the lowest hourly rate, but an organization with a lean focus works more efficiently, resulting in lower total cost overall. A lean approach—to planning, design, project management, construction, commissioning and close-out—helps ensure that the project represents the best value for the money. And in today’s economy, that’s the ultimate success. Lean 2009-07-08T00:07:05+00:00 http://www.ipsdb.com/index.php/lean/news/what_is_lean/ http://www.ipsdb.com/index.php/lean/news/what_is_lean/#When:00:00:20Z You probably remember the story about the blind men and the elephant. One man touches the beast’s leg and proclaims that an elephant is like a tree. Another grabs the tail and declares that an elephant is more like a snake. The one who touches the elephant’s side is convinced that the animal is like a wall. And so on. “Lean” can be a little like the blind men and the elephant. Like “green,” lean means different things to different people—and it manifests itself in different ways for different projects. To some, lean is a formal system. To us, it’s a mindset that embodies certain principles. Key among these principles are: Continuous improvement. The principle of kaizen assumes any process or project can be improved, even if just a little at a time, when the people doing the work are empowered to recommend changes. Waste reduction. Muda refers to anything that does not add value. It could mean time wasted while work crews wait for equipment to arrive at a site, effort wasted on rework, money spent on redundant staffing or wasted materials. Information is wasted when a facility is designed without input from the people who will use it. Often the greatest waste is associated with the way a project is managed. Mura, or unevenness, refers to having more work than resources at some times and idle resources at others. Muri means pushing a resource—human or otherwise—beyond its limits. Value creation. The essence of lean is delivering a project that meets the owners’ needs and supports the organization’s goals at a fair price. The most effective way to create long-term value is to apply lean throughout the entire project lifecycle. Reams have been written about lean—and it often sounds abstract and out of reach. In reality, however, the concepts are simple and pragmatic. Many practical tools can and are being used today to deliver successful capital projects with outstanding long-term value. Lean 2009-07-08T00:00:20+00:00 http://www.ipsdb.com/index.php/lean/news/integrated_lean_delivery/ http://www.ipsdb.com/index.php/lean/news/integrated_lean_delivery/#When:23:57:02Z On a production line, lean is about reducing waste in its many manifestations: wasted time, wasted effort, wasted materials, etc. It’s about being open to input from the people on the front line who are experienced with doing the work. Lean means continually looking for ways to do the job better, more efficiently and more cost effectively. It’s about creating value for the customer. It’s no different with project delivery. Integrated lean delivery is still about creating value for the client. It’s tempting, especially in tough economic times, to focus on getting reduced hourly rates and lower costs for raw materials or the think simply in terms of “value engineering”. The issues that make a real long-term difference are even more challenging: making sure that strategic goals are aligned across your entire program and that everyone is speaking the same language. You need to eliminate as much waste as possible throughout the full project cycle, starting at the highest level. As Greg Howell and Glenn Ballard note in Implementing Lean Construction: Understanding and Action, “Implementing lean thinking will lead to change in almost every aspect of project and company management.” Integrated lean delivery reduces touchpoints and opportunities for confusion and vests more responsibility in fewer places. At the project level, it can reduce waste by streamlining project communications, focusing accountability and ensuring that your goals are clear. It can add value from concept through commissioning through more accurate target costing, better constructability, more consistent standards and a risk-based approach. To get the most bang for your facilities program buck, consider lean integrated program management—which the Project Management Institute defines as “applying risk-based, waste-reducing, value-adding methods on a group of related projects through an integrated team to achieve superior benefits and best-in-class performance.” With a comprehensive view of your organization’s big picture, an integrated lean program delivery team can reduce waste by monitoring trends, drawing on lessons learned and maximizing, optimizing assignments for maximum effectiveness and offering greater flexibility to adjust resources. Consolidated reporting, leveraged buying and benchmarking are a few of the ways it can add value to your entire program long after today’s financial headlines are history. Lean 2009-07-07T23:57:02+00:00 http://www.ipsdb.com/index.php/lean/news/is_lean_for_me/ http://www.ipsdb.com/index.php/lean/news/is_lean_for_me/#When:23:54:08Z Let’s set aside the question of whether you should implement lean manufacturing and focus on lean capital project development and how it might benefit your organization. Then the real question becomes, How lean do you want to be? Despite what you may have heard, you don’t have to be a Six Sigma Black Belt to run a lean capital project program—but you do have to have a very deep understanding of your organization’s needs and goals and how your projects align with them. You also need to be open to shifting away from traditional thinking in many areas. For example, cost information in a lean project is often more widely distributed so informed decisions can be made a lower level. Not every organization is ready for this. In addition, you should be willing to consider using new tools and technologies—such as Building Information Modeling (BIM) and Good Engineering Practices—that support lean principles. Remember that lean is an ongoing process of improvement and waste reduction that aims to create value. You won’t get there by flicking a switch—but you might start by opting for design/build on a project. In the hands of a team committed to lean, design/build is a lean strategy that can reduce redundancy and streamline project delivery. Design/build with BIM can take the benefits a step further by improving communication and accuracy through enhanced project documents. The ultimate value is realized through lean program management. Lean 2009-07-07T23:54:08+00:00