Agile and Lean for Construction

Agile and Lean
for
Construction
September 2011 Engineering Innovation.

Friday, 23 September 2011

Construction Project Overruns Engineering Innovation.

Sydney Opera Channel Tunnel Boston Arterial
House Final cost 80% Tunnel
Final cost 15 more than was Final cost 196%
times more than originally planned more than was
was originally originally planned
planned

Copyright Ennova 2011


Project Overruns Engineering Innovation.

Construction Industry Software Industry
Source: 2002 Journal of the American Planning Association Source: 2009 Chaos Report - Standish Group

• 90% projects exceed costs • 68% projects exceed cost or
time or did not satisfy scope
• Overruns of between
50% to 100% • Average overruns of 43%



Cause of Construction Overruns Engineering Innovation.

• Poor or incomplete design and documentation
• Client scope change during construction
• Mistakes during construction
• Delays in decision making or instructions
• Poor communication and information dissemination
• Poor planning and scheduling
• Weather
• Labour skills, availability or disputes
• Incorrect material types or quantity

Sources:
Baloyi and Bekker - Causes of construction cost and time overruns 2010
Memon, Rahman and Azis - Preliminary Study on Causative Factors Leading to Construction Cost Overrun 2011
Alwi, Hampson and Sherif - Non Value-Adding Activities in Australian Construction Projects 2002



Construction Productivity Engineering Innovation.



Construction Productivity Engineering Innovation.

Manufacturing Construction

57%
26%
62% 10%

12% 33%

Non-Value Added Support Activity Value Added

Source: Construction Industry Institute


Lean and
Construction

Engineering Innovation.


Lean Fundamentals Engineering Innovation.

Lean originated as an approach to improving manufacturing
systems by focusing on creating value and eliminating waste.

Lean has now come GOAL: Shortest Time, Best Quality, Lowest Cost,
Greatest Safety and Highest Morale
to represent a way of
FLOW PEOPLE QUALITY
thinking and a set of Continuous Leaders as
Quality Control
practices that can be Flow

Pull Systems
Coaches

Collaboration
Error Prooﬁng

applied to almost any Integrated Seeing the Real
Root-Cause
Analysis
work process. Logisitics Thing

Standardise Visual Continuous
Process Management Improvement

Philosophy / Principles



Lean Construction
fully occupied and profitable.! This is an example of the waste of
common in mass production. Engineering Innovation.
These features highlight the importance of the influence of Ford’s
conscious design of the production system set in place for the Empire
Lean Construction is an adaption of Lean
They lead us to identify it as a mass construction system4.
principles and practices to the design and Empire State Building
execution of construction projects.

Lean Construction supplements traditional
construction management approaches by
focusing on:

1. Creating material and
information ﬂows
2. Maximising value generation
3. Using plan, execute and
control paradigms

Fig. 2: Construction of the Empire Source: Willis and Friedman 1998
State Building (Willis and Friedman

THE DEVELOPMENT OF CONSTRUCTION SYSTEMS

Friday, 23 September 2011 Introducing the term mass construction to define practices to create

Lean Construction Engineering Innovation.

Shared Principles
• Optimisation of entire system through collaboration and systematic
learning
• Continual improvement and pursuit of perfection involving everyone
in the system
• Focus on delivering the value desired by the owner/client/end-user
• Creating ﬂow though systematically eliminating obstacles to value
creation and elimination of processes that create no value (waste)
• Creating pull production

Key Differences
• Construction projects are unique (one-of-a-kind) prototypes
• Multiple suppliers act under different commercial arrangements
• Construction environments are typically outdoors and/or difﬁcult to
control


Seven Wastes within Lean Engineering Innovation.

1. Waiting Extra Waste:

2. Motion 8. Under-Utilised
People
3. Over Processing

4. Over Production

5. Transportation

6. Inventory

7. Correction / Defect



Lean Wastes in Construction Engineering Innovation.

Waiting Waste
Also known as delay, waiting
refers to the periods of inactivity
that occur because a preceding
activity didn’t deliver on time or
ﬁnish completely. Waiting waste
increases cycle time during
which no value-added activity is
performed

Source: http://leanhomebuilding.wordpress.com/2010/06/27/the-7-wastes-on-the-construction-site/




Motion Waste
This term refers to the extra
steps taken by people to
accommodate inefﬁcient process
layout, defects, reprocessing,
overproduction or excess
inventory. Motion takes time and
adds no value to the product or
service. To move and add value
is called work. To move and not
add value is called motion.





Over Processing Waste
This term generally refers
to unnecessary steps in operations,
such as reprocessing, double-
handling, added communication
and double-checking which adds no
value to the product or service.
Over-processing is often inserted
into a process as a result of
dealing with defects,
overproduction or excess inventory.





Over Production Waste
Overproduction occurs when
operations continue after they
should have stopped. It’s
producing more than is needed,
faster than needed or before it is
needed. This results in product
being produced in excess of what’s
required, products being made too
early, and excess inventory carrying
costs.





Transportation Waste
This is unnecessary motion or
movement of products or materials
that does not directly support
immediate production, such as
materials being transported from one
job-site to another or materials being
transported from the job-site back to
the Building Partner. Ideally transport
should be minimised for two
reasons: It adds time to the process
during which no value-added activity
is being performed, and the material
is exposed to handling damage.





Inventory Waste
This refers to any supply (materials
or goods) in excess of what is
required to build the current homes
under construction. Inventory
includes raw materials, work-in-
process and ﬁnished goods. Though
not all inventory is unnecessary
waste, excess inventory can quickly
build-up and tie-up dollars and
resources. All Inventory requires
additional handling and space.





Correction Waste
These are products, materials or
services that do not meet
expectation or conform to
speciﬁcation. Corrections and
defects are anything not done
correctly the ﬁrst time and must
be repaired, sorted, re-made or re-
done, as well as materials which are
scrapped due to defects.




Challenges for Lean in Construction Engineering Innovation.

Prototypes
Construction projects are unique (one-of-a-kind) prototypes

Environment
Field environment is unpredictable - weather, access, ...

Communication
Teams are geographically separated adding complexity to sharing information

Supply Chain
Projects are typically deliver by multiple suppliers engaged through adversarial
contract agreements

Systems/Tools/Education
Limited systems to support Lean Construction and limited understanding within
the construction industry



Fundamental Difference Engineering Innovation.

Unique and Project Based

Repeated and
Process Based



Agile and
Construction



Agile Origins Engineering Innovation.

Crystal! RUP!

Scrum! DSDM!

XP! Agile! FDD!



Agile Engineering Innovation.

Agile is an umbrella term for a set of values, principles
and practices.

Management!
Practices!

Technical! Social/Team!
Increase Value Practices! Practices!

Values &!
Principles!
Reduce Risk

Manage Complexity
Empirical control, Continuous monitoring, Heuristics



Agile Fundamentals Engineering Innovation.

AGILE TECHNICAL
AGILE TEAM PRACTICES
PRACTICES Test-Driven Development
Continuous Integration
Colocation Automated Deployment
Daily Stand Ups Incremental Design and Architecture
Iteration Planning Acceptance Test-Driven Development
Customer Showcase Refactoring
Retrospective Technical Spikes
Adaptive Release Plan Exploratory Testing
Cross-Functional Team Collective Code Ownership
Requirements as Stories Deﬁnition of Done
Planning/Story Wall Ubiquitous Language
Informative Workspace PRACTICES
Burn Up/Down Charts
Parking Lot Diagrams
Success Sliders
Planning Poker AGILE PRINCIPLES
Simplicity
PRINCIPLES Transparency
Frequent Delivery
Customer Involvement
Technical Excellence
Team Work
AGILE VALUES VALUES
Self Organisation
Emergent Design
Working Deliverables Continuous Improvement
Human Interactions Sustainable Pace
Customer Collaboration
Responding to Change



Construction Complexity Engineering Innovation.

Issue Plan

Update Plan

Ideal Plan Construction Site

• Construction projects are not inherently complex - but because of the challenges
encountered during execution they can become complex.

• Because it is difﬁcult to maintain an up-to-date plan - the plan rarely reﬂects the actual
sequence in which tasks are completed

• Majority of construction tasks are completed based on tacit knowledge and improvisation
at the operational level



Agile and Complexity Engineering Innovation.

The principles and practices in Agile help reduce the risks associated
with complexity.

Setting and agreeing clear goals and boundaries

Break problem into small pieces and completing in the order of greatest priority

Defer design decisions to the last responsible moment

Retrospection and continuous improvement

Clear deﬁnition of done

Measure progress and adapt plans

Encourage group wisdom through team work and cross-functional collaboration



Brief History Engineering Innovation.

Development of methods to address construction productivity
were conceived at a similar time to development of Agile methods

First paper
published Last Planner
on Scrum System WorkFace
Toyota
method Published Planning
Production
System Published
Lean ﬁrst First XP
published considered book
applicable for Agile
published Manifesto
construction

1988 1992 1995 1999 2000 2001 2007 Now



Last Planner
and
WorkFace Planning



Last Planner System Engineering Innovation.

Method for controlling and providing certainty around materials,
resources and work-face dependencies by using a collaborative
approach to pull scheduling.
Last Planner System
Master Schedule Set milestones
and key dates

Should Specify handoffs
Phase Schedule
Do between trades

Can Make ready and
Do Look-Ahead Plan initiate re-planning
as required

Will
Improving

Weekly Work Plan
Feedback Do
& Learning Doing
Progress Tracking
& Done
Measure progress and remedy issues



Last Planner System Engineering Innovation.

Project Controls
Project Monitoring &
Planning Controlling Master Schedule

Constraints

Field Execution
Weekly Work
Planning

Daily
Standup! Measure
Weekly Work
Plan Kickoff Progress
Make
Ready!
Retrospective
Execute
Field Work!



Weekly Work Engineering Innovation.

Master Schedule
6 Week Look Ahead
Should Do Can Do
Activities Activities

KANBAN PLANNING BOARD

Can Do Will Do Doing Done
ACTIVITY ACTIVITY ACTIVITY Will Do
ACTIVITY
Activities
ACTIVITY ACTIVITY ACTIVITY ACTIVITY

ACTIVITY ACTIVITY ACTIVITY

ACTIVITY ACTIVITY
Limit
ACTIVITY
Work
ACTIVITY in
ACTIVITY Progress



WorkFace Planning Engineering Innovation.

WorkFace Planning involves the creation of small, well defined, field
installation Work Packages that support the construction workforce.

A typical Work Package supports one rotation (5 to 10 days) of a work
crew and is based on activities that are extracted directly from the
construction schedule/plan.

Material and Equipment
availability is confirmed Materials,
before Work Packages Equipment
are issued

Master / Phase WorkFace Work
Schedule Planning Packages

A buffer of Work
Packages is maintained
to ensure field work
Drawings, crews are optimally
Specifications utilised



Agile and Construction Engineering Innovation.

Agile Construction
Iteration/Sprint Planning Weekly Work Plan

User Story Work Package

Story Elaboration WorkFace Planning

Customer Showcase Site Inspection

Retrospective Weekly Review

Burn-Up/Down Charts S-Curve

Adaptive Planning Look-Ahead Planning



Thank You
Agile and Lean
for Construction
Adrian Smith
Hugh Hofmeister



Agile and Lean for Construction

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