7_Slaus on Lean Congr

7/27/2019 7_Slaus on Lean Congr

http://slidepdf.com/reader/full/7slaus-on-lean-congr 1/39

The Iowa Events Center:A Mechanical Contractor’s Story

A Presentation by

Nathan SlausonProject Executive

The Waldinger Corporation

For

The Sixth Annual Lean Congress

Park City, UT

September 16, 2004



Biography Nate Slauson

• 32 Years Construction Industry Experience

• Doctoral Candidate

Case Western Reserve University

(Weatherhead School of Management)

• Journeyman Sheet Metal Worker

• Adjunct Professor William Penn University



Overview

• Project Description

• Project Information

• Project Statistics

• Motivation

• Project Assumption

• Project Implementation Tools• Results



Project Description

Public Project Des Moines, Iowa

Owner: Polk County

Project Governance: Construction Manager (NOT AT RISK)

Contract Type: Bid and Specification

Special Conditions: Project Labor Agreement

OCIP Insurance Program

No Storage on site



Project Contractual Relationship



Project Information

• Original Mechanical Contract: $23,200,000

• Mechanical Contract: $24,632,815

• Original Sheet Metal Contract: $6,810,400

• Sheet Metal Change Orders: $1,239,600

• Deductive Sheet Metal Change Orders: <$500,000>

• Related Jobs Income: $470,000

• Sheet Metal Contract: $8,020,000



Project Statistics

• RFI’s 2,300

• SM RFI’s 236

• Letters 280

• Project CCA 400

• Project Amendments 22



Motivation

• Reduce Risk

• Uncertainty of the Project (Process & Product)

• Complexity of the Project

• Goal Alignment and avoiding Suboptimization

• Involvement of Other Contractors

• Focus on Effectiveness

• Fear



Lean Thinking AssumptionLean Thinking Assumption

The Transition fromTransactional to Relational

Project Process

The Transition fromTransactional to Relational

Project Process



The Fundamental ObjectiveThe Fundamental Objective

Implementing the Changeto the Relational ProcessImplementing the Changeto the Relational Process

• Build Trust among all participants (CM, DesignProfessionals, and other Contractors)

ØEstablish the concept of the Greater Good of the Project. (Tragedy of the Commons)

1. Leadership

2. Problem-solving

3. Teamwork

•• Build Trust among all participants (CM, DesignBuild Trust among all participants (CM, DesignProfessionals, and other Contractors)Professionals, and other Contractors)

ØØEstablish the concept of the Greater Good of Establish the concept of the Greater Good of the Project. (Tragedy of the Commons)the Project. (Tragedy of the Commons)

1. Leadership1. Leadership

2. Problem2. Problem--solvingsolving

3. Teamwork3. Teamwork



Building the RelationshipBuilding the Relationship

• Focus on improving the project opportunities for the project Team.

• Create credibility through performance anddirect action. (Problem-solving)

• Educate others of how working together enhances opportunities for all.

• Share Information

• Focus on improving the project opportunities for the project Team.

• Create credibility through performance anddirect action. (Problem-solving)

• Educate others of how working together enhances opportunities for all.

• Share Information



Why Is The Relationship ProcessLeap So Hard?

• We usually focus only on “Our” Problems and Issues

1. Information is not shared

2. Trust is not established3. It takes time and effort to see the bigger picture

4. The status quo is confrontational and transactional

5. Problems are not solved ahead of time

6. Communication and comments are not maintained





Key Issues• Planning

• Documentation Process

• Identify key personnel required for the new project.

• Changing the duct fabrication requirements (Lindab Spiral), duct routing andshape, and transference of field hours to shop.

• Establish Construction Estimate for detailing, field, and shop.

• One-Piece Flow Manufacturing (Shop and Field)

• Duct Hanging methods (Gripple)

• Governance Model (Benchmarking Process)

• Obtaining Cooperation in a Hostile Environment



Develop the Plan

• Start building relationships with the notification of project award with Contractors, DesignProfessionals, and CM.

• Review the contract before signing.

1. Highlight all changes to AIA and establish a master document.

2. Verify your scope opportunities

3. Read other contractors’ scopes to identifyduplication of scope and opportunities.



Develop the Team to Handle theDocumentation

• Focus the management team on the importance of documentation.

• Provide the Tools to maintain the documentation andcommunication channels.

• Set project priorities with all subcontractors andpredecessor and successor contractors.

• Provide leadership by involving all into a meaningfulproject block of contractors.



The Job of Documentation

• Set up Project Documentation Requirements

• Sell concept to the internal political structure

• Hire Administrative Assistant

• Provide the Leadership Chain of Command

• Provide the Tools required

• Follow-up and Follow-up (Diligence does count)



Tools for Documentation

• Set up a separate drive on the computer for the project teamnetwork.

• All documents to be maintained on the assigned project drive(Billing, Correspondence, RFI’s, Plans, Submittals, ChangeOrders, etc.)

• Setup E-groups for emailing RFI’s, CCA’s, Addenda,correspondence, meeting minutes, etc. to all subcontractors.

• Team meetings with Subcontractors to explain advantages of E-group process.

• Plan size documents also scanned and forwarded for printing at

subcontractor location.

Project Management to maintain focus on the whole & sustainthe documentation process to avoid crisis and identify Projectopportunities.





Mike Deeds

Project Supt.

Cory Fisher

Arena Foreman

Scott Moon

Exhibit Hall Foreman

Name

Crew leader

Name

Crew leader

Name

Crew leader

Name

Field Detailer

Iowa Events Center

Sheet Metal Field

Organizational Project Chart



Duct Conversion and Rerouting



Estimate Comparison

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Detailing Shop Field

M a n

H o u r s

Original Est imate

Construction Estim ate



Action Steps

• Bring in Supt to the office for Planning and familiarization of Project. (Problem Identification)

• Provide all information, submittals, equipment, and projectestimated requirements for the team before assigning tasks.

• Use Supt to work with Detailing Team to establish prioritiesand opportunities.

• Maintain team meetings to verify goal setting, progress, andproblems.

• Maintain constant communication with Subcontractors, CM,

other Primes, and Design Professionals.



FeedbackFeedback

GoalsGoals

InstallationInstallation

DeliveryDeliveryFinal AssemblyFinal Assembly

Component AssemblyComponent Assembly

PiecePartPiecePart

RawMaterialsRawMaterials

Flow — One-Piece Manufacturing!Flow — One-Piece Manufacturing!

TeamworkTeamwork

PlanPlan



Field One-Piece Flow Manufacturing



Continuation of Flow



Finish of Assembly

Duration of Assembly Process 2 crew hours (3 man Team)



Gripple Hangers



Duct Installation



Benchmarking DecisionsGOVERNANCE

Creates

_ - +

Producing

When not managed When well handled

Which Which

Policy

Complex, Opportunities and Interdependencies

Choices

Infighting No ActionTurf BattlesManipulation

Power Struggles

Original ThinkingTeamwork Creative ProblemSolving

Add ValueInnovation

Lower Efficiency

Raise Costs

Kill Innovation

Alienate People

Frustrate

Making Organizations:

Competitive

Adaptive

Responsive

Profitable

R e d u c e Un pr o d u c t i v e Di v e r s i t y

I n c r e a s e U n p r o d u c t i v e D i v e r s i t y



Process Changes

• Rectangular fabricated duct reduced by 58% (305,000 LBS).

• Spiral Duct purchases increased by 200% (104,000 LBS)

• Total number of pieces installed decreased by 75%.

• Transferred traditional field work into shop for assemblies.

• Off site storage established to adjust for schedule variability.

• Focus on Lookahead Planning at all levels.

• Teamwork with Project Participants



An Example of Spiral Conversion



Duct Assembly from Shop



Grille and Damper Assembly fromShop



Complete Assembly



Equipment Stored at Truck Yard



Material Stored at Vendors Location

C ti I ti



Creative Innovation

• Negotiate direct with Manufacturer for early pay options

Company Savings of $100,000

• Change Traditional Rental Equipment TimelinesCompany Savings of $45,000

• Control of the project scheduleUnnamed CM Quote

“ I have never seen a Sheet Metal Contractor lead the project delivery system in my 25 years as a CM”

• Establish lean process with CM to improve project schedule

• Leadership from within

• Creating Team Cooperation in an hostile environment utilizing techniques

from The Evolution of Cooperation by Robert Axelrod

R lt



Results

• Unanticipated PLA Savings

• Labor reductions of 33%

• Related Project Income

• Substantial Profit Improvement

• Built and Maintained positive relationships with CM, DesignProfessionals, and other Prime and Subcontractors.

• Provided new approach to project governance in contrast to thetraditional confrontational and transactional process utilized on

most projects.

• Requested on additional Projects

Documents

7_Slaus on Lean Congr