TDC Book Parte6
TDC Book Parte6
33
GO TO THE WORK
Introduction
Too often we think we understand all aspects of a project, but without physical
observation, we can actually miss a lot. “Going to the Work” is not simply about quality
control or ensuring that a project is on track—it helps us understand the intricacies of
how the work gets done in order to identify waste and improve performance.
1.0 Why
Going to the Work (called Going to the Gemba in original Toyota Production
System language) is crucial to improving overall quality control and eliminating waste
in the workflow process. It helps participants identify ways to standardize processes
and manage expectations from a first-hand perspective, rather than second or third
2.0 How
Experienced practitioners employ a variety of methods and tools to assist them
in the Go to the Work process. One of the most well-known is the Ohno Circle,
which involves observing a project for an established period of time to gain a full
understanding of the entire process.
Additional methods and tools include:
• Video Studies: Used for processes that are too long or impractical to observe
in real time. Instead, the process is taped and watched as a video. The videos can
be used later as training aids for continuous improvement.
• First-Run Study: Often the first step employed by project leaders to gain a
sense of work movements. The goal is to help standardize processes and mark a
baseline for continuous improvement.
• Skilled Craft Lunches: Provides an intimate setting to search for issues and
ideas from trades and other partners.
• Spaghetti Diagrams: Involves drawing a pencil sketch of the movement
associated with a process. If overly complicated, then the process is likely
The awareness gained from Going to the Work serves to educate the team on how
work is performed at every stage of the process, and leads to productive change.
Shown: Notes from observations on processes in an Emergency Department.
3.0 What
Going to the Work refers to the act of observing a project’s moving parts, from
administrative tasks to specific construction processes. It is directly related to the
principle of “going slow to go fast” and Continual Reflection. The awareness gained
from these observations serves to educate the team on how work is performed at every
stage of the process, and leads to productive change. Information gathered can also
be used with other tools, such as Value Stream Mapping, A3s, PDCA and Swarming.
Everyone involved in a project can benefit from Going to the Work, from owner
representatives, project design leaders, project managers and leadership, to cross
trades and less experienced practitioners.
References
Gemba Walks, Jim Womack
Quick Reference
Respect for People .................................... 77
COLLABORATIVE BUDGET
MANAGEMENT
Introduction
While traditional project teams have sufficient budget management skills, typically
the focus is on individual participants rather than the entire project. Rarely are the
details of these outcomes shared with team members beyond those individual firms.
This silo method of reporting can lead to surprises down the road as firms review their
Cost to Complete (CTC) at different rates, often not identifying overruns until late in
the project. These surprises harm team morale, ruin relationships and cause significant
discontent among partners.
1.0 Why
A Collaborative Budget Management Process is essential for accurately tracking
and projecting a project’s CTC. Unfortunately, many in the industry do not properly
manage the process, or have an unreasonable approach to managing CTC. This
frequently leads to unplanned cost overruns.
Cost Forecasting, as well as Risk and Opportunity data, are key components to
Budget Management and are necessary for projecting CTC. A proactive Collaborative
Budget Management Process creates a reliable barometer for participants to monitor
profits and outcomes throughout the duration of the project.
The principal advantages of Collaborative Budget Management include:
• Creates a platform for open, honest and frank discussions about the challenges,
opportunities, and progress of a project.
• Promotes CTC awareness.
• Encourages transparency.
• Discourages scope hoarding or avoidance.
• Enables shared procurement.
• Enables shared/consolidated scope.
• Facilitates efficiency discussions.
• Pinpoints cross-trade disruptions.
• Engenders a shared understanding of Current Working Estimate (CWE).
• Encourages shared goals/shared risk reward knowledge.
The Budget Management process should not focus only on actual cost,
but should reach a determination as to why actual cost differs from the
original estimate.
Additionally, the team should have an understanding of the Added Scope vs. Team
Target, which is determined by asking probing questions such as:
• What specific scope drove the change in cost?
• Why did the scope change?
• Did we challenge the scope change in person? With whom?
3.0 What
Collaborative Budget Management ensures that project teams are accurately
reporting the collective health of a project. It is a method for both design and
construction to ascertain their Cost to Complete and should be perceived as a
management (not accounting) tool.
While Cost Forecasting in Early Project Phases focuses on time and materials on the
front end of a project, Collaborative Budget Management focuses on costs through
the end of the project. In fact, Burn Rate and Risk and Opportunity data from the early
development stages should flow into the Budget Management process.
Quick Reference
Cost Forecasting in
Early Project Phases................................... 53
PLUS/DELTA
1.0 Why
A primary pillar of a Lean culture is Continuous Improvement. One very effective
way to strive for this is through Retrospection. Plus/Delta is a quick, simple retrospective
to improve meetings, planning sessions or repetitive activities. By using Plus/Delta,
teams can continuously improve meetings or activities and show respect for people by
discussing the value of or ability to improve the time spent on events. Using this practice
appropriately will help develop and sustain the Lean culture. Over time, participants
will ideally develop a regular practice of making timely assessments and adjustments.
2.0 When
Plus/Deltas are typically done in last 10 minutes of a meeting or activity. Projects
and organizations that really look to maximize their learning from the practice also
use it mid-way through a longer meeting or work session. It can be particularly helpful
as a coaching tool when a meeting is going off-track—it will help recalibrate the team
around the meeting’s objective and potentially help them identify a new objective.
Quick Reference
Facilitation.................................................... 57
AGENDAS
1.0 Why
Lean/IPD teams are encouraged to work in groups, not silos. This reduces rework
by incorporating the needs of many stakeholders before a solution set is presented
or moves forward. Though this way of working seems to require many participants
attending many meetings, it ultimately reduces the total time spent in meetings. Having
an effective agenda respects the participants’ time and the value they add to the
subject matter. Good agendas effectively move work forward by aligning participants
with objective outcomes. Collaboratively-built agendas support the development of a
Lean culture. It is equally important for the agenda to be well-facilitate.
3.0 How
Preparation
• Develop the agenda collaboratively. Involve all participants.
• Prepare the agenda at the end of a recurring session for the next session. Another
option is to prepare the agenda earlier in the recurring session, particularly if
attendance drops off or participation wanes during the meeting. This is a critical
step.
• Publish or post the agenda well before the session meets. This advance posting
allows participants to prepare—and also allows others to participate if they feel
they will add value.
Resources
Read this Before Our Next Meeting, Al Pittampalli
Death by Meeting: A Leadership Fable…About Solving the Most Painful Problem in Business,
Patrick Lencioni
Effective Big Room Agenda, Inside Out Consulting/Kristin Hill
Quick Reference
Visual Management.................................. 33
Plus/Delta................................................. 201
THE MINDSET OF
AN EFFECTIVE BIG ROOM
1.0 Why
An effective Big Room supports cross-functional team collaboration by advancing
work and bringing the larger team up to speed on the activities of other groups or
individuals. It allows teams to understand their impact across clusters or work groups.
The Big Room also provides teams with the time to discuss project-wide concerns
such as budgets, hot topics or global changes. The term Big Room refers more to the
behaviors and actions of the team than the physical space. The Big Room is more than
co-location of people; it is about collaborative behavior and the work it produces.
Although forming a Big Room requires a significant investment of time and money,
the Big Room adds value to the project and drives down overall project cost.
Quick Reference
Cluster Groups......................................... 155
Agendas.................................................... 205
Value Stream Mapping is best used for mapping the flow of value for
processes performed multiple times.
2.0 How
As a critical first step in the development of a VSM, it is important to accurately
assess and gain consensus regarding the current state of the process. This requires input
from all who actually participate or use the system/process. Systems often are loaded
with non-value-added steps; therefore, it is valuable to assess the current state of the
process.
The creation of the VSM should begin with the end in mind, be customer-focused,
and be completed by someone who is close to the work. Ultimately, the VSM will lead
to quick wins or “just do its,” but inevitably will need a deeper dive to solve the larger
issues in the process, such as A3 thinking and Root Cause Analysis. The process does
not necessarily require technology.
Non Value-Added components tend to creep into a process over time, and by
understanding the process, a project team is better able to design a solution that
optimizes functionality and eliminates waste.
3.0 What
A VSM is a picture (map) of the entire process being studied and includes both
material (product/service) and information flows, decision points, handoffs and
interactions with other systems. Once a process is accurately documented, the
team determines which steps are value-added and which are non-value added.
Subsequently, a VSM identifies waste within a process and areas for potential
improvement. Seeing the system laid out visually allows participants to remove the
waste through step elimination and helps them understand the true value of the
process/system.
The VSM is a scalable, actionable exercise and should prompt action to reduce
waste in the process. This waste reduction frees up resources for other value-added
activities.
A VSM should be Defined, Documented, Distributed and Monitored in order to
ensure that it is an actionable document, because the VSM is created as a prelude to
action.
Quick Reference
Learning to See Waste............................. 23
WORK STRUCTURING
Introduction
Work Structuring can be described as a path taken from chaotic work to optimized
work. It involves implementation of a number of strategies and tools, including defining
standard processes, working to optimize those processes, and seeking one-piece flow;
while employing tools such as mistake-proofing and built-in quality. The construction
industry must work to eliminate the celebration of heroic behavior—taking on a nearly
impossible task and putting the project at risk—by taking a step back and being more
intentional about work structuring. The potential exists for significant transformation,
resulting in massive improvements in productivity and quality.
2.0 How
As with many Lean approaches, Work Structuring seeks to optimize the whole. For
work structuring to be effective, there must first be an awareness of local optimization,
followed by an understanding of how the various local systems interact from the
perspective of global optimization. Under Work Structuring, a system-centric view is
preferable to a product-centric view, with the key focus being the integration of systems.
Local improvements must be evaluated within the context of the entire project; building
to a global level is a logical progression.
Work Structuring often begins with an effort to standardize repetitive work. However,
it is important to note that non-repetitive work is ripe for improvement as well. In non-
repetitive work, individuals should seek hidden repetition and find opportunities to
optimize and strengthen connections and the handoff of work.
Companies should always seek the new standard by elevating the baseline through
innovation. As new innovations arise, the baseline moves in concert to become the
new better practice that is spread through the company as the updated standard. This
cycle can repeat perpetually and is the basis of Continuous Improvement.
The contractual terms can help or hinder the ability of the team to optimize the
whole and properly structure work. Traditional ways can hinder in optimizing work but
relational contracting methods such as an Integrated Form of Agreement (IFoA) can
help overcome the methods of the past. An identified standard process can be used as
a baseline for continuous improvement. Refining the balance.
Mistake-proofing can be a powerful tool in Work Structuring. A mistake-proof step
in a process prevents the one doing the work from performing the step incorrectly. A
simple example can be taken from operating a car. In most cars with an automatic
transmission, the car cannot be started unless it is in park or neutral. Most of these
cars cannot shift out of park unless the brake pedal is depressed. Furthermore, the
key cannot be removed unless the car is placed in park. Most cars with a manual
transmission will not start unless the clutch is depressed. These are examples of mistake-
proofing because they only allow the driver to behave in one, optimal, safe manner.
Built-in-Quality can also significantly shape Work Structuring. Building in quality
improves the work by reducing or eliminating the need to check or monitor a process.
Most critically, quality occurs at the point where a discrete step in the process occurs
instead of at the end of a process where defective work has already taken place.
3.0 What
Work Structuring involves the following steps:
1. Identify an activity with repetitive work: Carefully examine the work your
organization performs. Select an activity that is repeated frequently and that has
some number of discrete steps. Start with a common process that is relatively
simple, and yet still substantial. This increases the chance of beginning your
improvement effort with an easy win, a key component to initial buy-in for the Work
Structuring effort. Start small to gain experience through repetition, then take on
increasingly difficult and complex processes as your team gains experience.
2. Develop a standard process for executing the repetitive work: Carefully map the
steps of the activity in a thorough manner. Involve the people who perform the
work and have them work together, using sticky notes to illustrate their discussion.
Pay careful attention to detail and be prepared to spend time defining what
each step entails. Encourage participants to share their stories of performing the
work—what went well, what didn’t work as planned, what they wish they had to
do the job better. Translate these recommendations into steps for the process. It is
important to reach consensus on how to best do the work with the people present
in the process. Also, define what you are seeking to improve and how you will
measure it. Common metrics include greater installation speed; fewer workers
required; less material needed; reduced number of errors, etc.
3. Implement the standard process: Document the new process in a visual manner
and distribute to all workers who will implement it. Post the process so it can be
seen and referenced from where the work is being performed. Plan for review and
training of the standard process and prepare to monitor its initial implementation
with all workers. Seek agreement that people will rigorously follow the standard
process, even if it is not the way that they have personally performed the work
in the past. Monitor the outcome of the process against the developed metrics.
Publish and celebrate the results.
Quick Reference
Continuous Improvement....................... 179
A3 THINKING
Introduction
Projects are developed by experts and contributors with various backgrounds and
experiences making thousands of decisions. Those experiences inform decisions,
whether appropriate or not, and ultimately determine project cost and outcome.
Collaborative projects have learned that waste is often imbedded in those decisions
that don’t directly apply to the current project Conditions of Satisfaction (CoS). A
High-Performing team will create a decision making process and rigorously perform
the A3 Thinking decision making process to identify and reduce waste while improving
compliance to the CoS.
2.0 How
An A3 is a collaborative document usually managed by a single author or champion
who has ownership of the document and oversees its development. The champion
drives the process and encourages contributions from team members. A more senior
team member or leader serves as a reviewer and mentor, guiding and challenging
its assumptions, recommendations, and conclusions.This process is performed with the
author in mind so that the information can be consumed in a short time period, thereby
yielding sharper thinking.
1. Grasp the
YES
Current Condition
8. Execute the
Implementaion Plan
9. Execute the
Follow-up Plan
3. Devise
Countermeasures and
6. Discuss with Affected Parties
4. Create Implementation
Plan YES
Identify Next
Establish Process Problem
Standrad
5. Create Follow-up Plan
Remember that an A3 is a high-level tool that does not prescribe specific steps.
Those can be shaped by the champion, reviewer,and team members. With that in mind,
below are a few tips for using an A3:
• Prominently define the problem that A3 is addressing.
• Include a list of participants so it is clear who contributed to the process.
• Make sure each A3 has an owner or champion.
• Don’t feel compelled to fill up the entire 11 x 17 paper if it’s not needed.
• If the problem doesn’t fit in the space, break it into a smaller problem that can fit on
the paper, or reshape the presentation more precisely.
• Use a platform that provides version control and allows editing by all team
members.
• Integrate visuals if they are more effective than text in communicating ideas or
illustrating points.
• Update the document as new information becomes available.
References
How to Use A3 Reports on Projects, Lean Project Consulting
Project Development for the Lean Enterprise, Michael Kennedy
Understanding A3 Thinking, Durward Sobek and Art Smalley
Managing to Learn: Using the A3 Management Process to Solve Problems, Gain Agreement,
Mentor and Lead, John Shook
Quick Reference
Facilitation.................................................... 57
CONCEPTUAL AND
CONTINUOUS ESTIMATING
Introduction
A collaborative project environment is intended to solicit and share input from
various constituents across the delivery supply chain. To maximize the value of
this interaction and to facilitate true value-based decisions, participants must have
conversations about solution Set Based Design concepts that lead to the need to
understand the cost impact of these decisions.
1.0 Why
Conceptual Estimating requires the constant re-evaluation of a project’s value
proposition, established from the beginning and updated frequently throughout the
process. Ultimately, Continuous Estimating allows constant confirmation of the viability
of the project, providing validation of the business case from the earliest stages.
Conceptual Estimating, along with Set Based Design, seeks to validate the business
case and answer the question, “What is the delta between what the owner wants
and what the business case will support?” Owners need to recognize whether they
can ultimately afford the development and whether the required capital investment is
appropriate. With Conceptual Estimating, the owner is provided with significant options
that can lead to various outcomes, with one possibility being not to proceed with a
project.
In order to make accurate, value-based decisions, meaningful real-time
understanding of the cost implications of each decision is necessary. Continuous
Estimation provides early validation of Want vs. Need—a balancing act with constant
tradeoffs. Cost can and should inform design. Understanding the cost implications of
design decisions is a valuable tool for designers to better align with owner intent and
maximize the value of their design. In many cases, a continuously updated estimate
prevents the frustrating and expensive re-design common to capital projects.
2.0 How
Two-skill sets are key elements of Conceptual and Continuous Estimating—one “soft”
involving necessary interpersonal skills, and the other “mechanical” having the actual
experience and knowledge. It is important to note how these required skills differ from
those of a traditional estimator.
Mechanical
At the outset of a collaborative project, the team should develop a detailed cost
projection of the “want.” When possible, benchmark what is feasible based upon
historical experience. This is balanced against what an owner can spend by way of
the business case, and a target is then established.
Soft
Communication is crucial. Listening intently is important to understand wants and
needs of the owner and intent of the designer. An understanding of the level of detail,
value proposition, or level of accuracy is critical. The confidence and trust to share
opinions is valuable.
Facilitation of negotiation continues to be integral to the process. Design elements
beyond program basics must earn their way into the project, rather than be dropped in
and backed out. Therefore, continuous value discussions are required.
The success of this process demands that the owner share its historical knowledge
with the team. Many products or processes are unique and have little industry
3.0 What
The primary focus of estimating is to create—with an applicable level of accuracy
and fidelity—a construction plan that can be successfully executed per the project
Conditions of Satisfaction and is key to the Target Value Design process. Continuous
Estimating will inform set-based design and reduce re-design by keeping the team
aligned with the project intent and designing within the range of affordable solutions.
Early and constant monitoring is necessary to make sure the team stays within its
parameters. Early validation of the business case is necessary, in addition to arming the
team with information to enable it to make informed future decisions and stay within the
business case. Early Stakeholder Involvement (See Early Stakeholder Involvement) is
critical to the success of the process and validity of this information.
4.0 Who
All team members need to have a sense of cost when considering design decisions.
If those skills are not within the cluster, an expert with the required knowledge should be
engaged.
Quick Reference
The Value Proposition................................ 19
Onboarding............................................. 187
BERNITA Beikmann
Bernita Beikmann, AIA, EDAC, LSSBB, is a Principal
with HKS Inc. (Dallas office) and the Director of Lean
Strategy for the office. She graduated from Kansas State
University with a Bachelor’s of Architecture and Certificate
in Regional and Community Planning in 1996. She is a
registered architect in the state of Texas and has completed
projects in Texas, California, Oklahoma, Florida, Washington,
Ohio, Indiana, Washington D.C., and Nevada.
Ms. Beikmann has been with HKS for 19 years and has spent the last 17 years
primarily on healthcare projects. The last eight years her work has been focused on IPD
and Lean Project Improvement on projects and with project teams. She is a successful
advocate for Lean planning, design and construction.
She has served integral roles as a project architect and project manager and as a
coach and facilitator for project teams. As Director of Lean Strategy and a Lean Six
Sigma Black Belt, she works with all departments at HKS to improve internal processes.
She has shared her expertise with more than 12 organizations and conferences in the
last several years, and was one of the original Core Team members of the DFW LCI
Community of Practice. Ms. Beikmann currently is serving on the joint committee for the
American Institute of Architects and Associated General Contractors of America.
CONTRIBUTORS 231
CHAUNCEY Bell
Chauncey Bell has enjoyed a long career of industry-
reshaping projects spanning many industries, including:
• Cement and aggregates
• Semiconductor construction and manufacturing
• Hospital construction
• Heavy equipment manufacturing
• Mining
• Electric utilities, electric distribution and wind farms
• Wholesale and retail banking
Mr. Bell’s projects shift clients’ cultures, shift the way that their commercial networks
operate, and add hundreds of millions to revenues and profits.
REBECCA Bettler
Rebecca Bettler is the National Director of Lean with JE
Dunn Construction. She leads a group of coaches and
trainers for all employees and project teams implementing
Lean practices and behaviors. She started in the
construction industry in 1996, beginning her Lean journey in
2006. She is also the Chair of the Lean Construction Institute
Education Committee.
Prior to JE Dunn, Ms. Bettler spent more than five years consulting
on the application of Lean principles in various organizations and project types. This
includes working with Owners, architects, contractors and engineers, Integrated Lean
Project Delivery teams, leading strategic planning sessions, implementing Last Planner®
System and various other Lean practices. She has developed and delivered training
materials and written white papers on various Lean Construction applications. In
addition to being an active member of the Lean Construction Institute, she is also a
Master Trainer of the Choosing by Advantages Decision-making System. Ms. Bettler
holds a degree in Business Management from the University of Phoenix.
SAMIR Emdanat
Samir Emdanat is the Director of Ghafari Management
Services and Director of vPlanner Product Development. He
is an industry-recognized leader in managing Integrated
Project Delivery teams. He is known for his approach
to overall project integration, which consistently results
in breakthrough results in various industries. In 2005, Mr.
Emdanat was recognized by ENR as one of the top 25
newsmakers for his work with General Motors on the Virtual
Factory Initiative, which resulted in breakthrough innovations in schedule, cost, quality
and safety.
CONTRIBUTORS 233
Most recently, he developed vPlanner, a visual planning solution that supports the
Last Planner® System. He also continues to lead the implementation of Lean and VDC
construction initiatives for owners in automotive, government, hospitality and healthcare;
as well as contractors and architects/engineers around the world.
KRISTIN Hill
Kristin Hill brings over seven years of Lean consulting
expertise to the design and construction industry. Prior to
being a Lean Consultant, Ms. Hill founded, grew and
subsequently sold an architectural firm in the Boston Area.
As President of InsideOut Consulting Inc., Ms. Hill currently
provides coaching to teams for projects being delivered using
Lean principles and tools.
JESSICA Kelley
As Director of Learning and Development for Southland
Industries, Jessica Kelley is using her past experience
to grow and refine the organization’s learning and
development strategy to support project execution, team
function, and Lean thinking.