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Construction Engineering: Reinvigorating the

Discipline

Lean Construction Institute

Gregory A. Howell, P.E.

A brief history of project management

• An activity centered operating system develops based on Critical Path Method becomes an industry standard.

• Contracts and industry practice and structure evolve.

• Construction management becomes contract management

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• Construction management becomes contract management.

• Productivity Improvement initiatives lead to discoveries.– Improving productivity of people and equipment can reduce

project performance

– CPM based planning does not produce predictable workflow

© 2010 Lean Construction Institute

How do we manage projects now?• Determine client requirements including quality, time and

budget limits and design to meet them.• Break project into activities, estimating duration and resource

requirements for each activity and placing them in a logical order with CPM

• Assign or contract each activity, give start notice and monitor safety, quality, time and cost standards. Act on negative y, q y, gvariance from standards

• Coordinate with master, some intermediate schedules and weekly meetings– reduce cost by productivity improvement– reduce duration by speeding each piece or changing logic. – improve quality and safety with inspection and enforcement

© Lean Construction Institute 2007Used with permission

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Contractor 1 33 %Contractor 2 52 %Contractor 3 61 %C t t 4 70 %

Research Findings from early 1990’s

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Contractor 4 70 %Contractor 5 64 %Contractor 6 57 %Contractor 7 45 %Average 54 %

© 2010 Lean Construction Institute

Percent Plan Complete (PPC) Chart

Rasacaven: Electrical Power Distribution

© 2009 Lean Construction Institute 5© 2010 Lean Construction Institute

Lean in the Construction Industry:

Three Connected Opportunities

1. Impeccable Coordination

2. Designing, organizing and managing projects as

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managing projects as Production Systems (why I am here – the opportunity for Construction Engineering, particularly in building construction)

3. The Project as a Collective Enterprise

© Lean Construction Institute & Baker Concrete, 2010

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© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

Planning Considerations

• Delay decisions to Last Responsible Moment

• Create Pull Schedules

• Only work to release downstream crews• Only work to release downstream crews (important also in design)

• Reliability of work flow

© 2010 Lean Construction Institute used with permission of IPD™

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Site as it existed on Novem

© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

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© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

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© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

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© 2010 Lean Construction Institute used with permission of IPD™

7/28/04

© 2010 Lean Construction Institute used with permission of IPD™

SCHEDULE PERFORMANCE• Contract Date• DD Complete• Demolition Complete • Time lost to DDB

• 12/30/03 • 1/26/04 • 1/7/04 • 6 weeks

• Permit Issued• Work Begins on Site• Plant Ready to Go

• 4/14/04 • 4/16/04 • 7/28/04

© 2010 Lean Construction Institute used with permission of IPD™

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BUDGET PERFORMANCE

• GMP $6,000,000

• Final cost with normal markup $5,400,000

• IPD savings against GMP $600,000

© Lean Construction Institute 2009

© 2010 Lean Construction Institute used with permission of IPD™

© 2010 Lean Construction Institute used with permission of IPD™

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Lean in the Construction Industry:

Three Connected Opportunities

1. Impeccable Coordination

2. Designing, organizing and managing projects as

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managing projects as Production Systems (why I am here – the opportunity for Construction Engineering, particularly in building construction)

3. The Project as a Collective Enterprise

© Lean Construction Institute & Baker Concrete, 2010

1. Project is a production system designed and managed for reliable and speedy workflow.

2. Single enterprise. Pain and gain shared. Investment and return mentality. Money moves to where it provides the greatest value.

3. Collaborative cross-discipline design & problem solving improves value to client profit for enterprise &

How is this different from current practice?Optimize the project not the piece!

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solving improves value to client, profit for enterprise & capability of people.

4. Production control produces optimal solutions at the project level.

5. Contingencies to protect trade contractors are no longer needed.

6. Active continuous learning reduces need for production contingencies and improves productivity.

© Lean Construction Institute, 2010

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Reinvigorating….

• Construction Engineering – Begins when design starts

– Embraces entire project

Applies the principles and practices of

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– Applies the principles and practices of production system design

• Reliable and speedy workflow

• Determines contingencies required by system

– Rapid learning within and between projects