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An application to construction of
a management philosophy
defined by the ideal it pursues,
the principles followed in pursuit
of the ideal, and the methods
used to implement the principles.

© 2011 Lean Construction Institute
Operating System

© 2011 Lean Construction Institute
X
Current Practice: A Coherent Common Sense

Optimize the project by optimizing the pieces.
Pressurize each supplier/participant to preform
by commercial terms.
Use an activity-centered operating system to plan
and manage the work
Five Big Ideas
The “Physics” of Business and Coordination
1

Request
“Will you?”

Offer

Inquiry

“Would you like?”
Accepted

PO

Negotiation
Submitted

Signed

CUSTOMER
4

Declare
Satisfaction

Conditions of
Satisfaction
&
Completion Date

COMMIT
2

“I Promise I WILL”

PROVIDER

“Thank you”

3

Declare
Complete
“I’m Done”

6

Courtesy Chauncey Bell
Discovered the obvious – Workflow on projects is
unreliable - Invented Last Planner®
Developed Pull Planning to connect weekly
planning with master schedule
Reinterpreted Pull Planning in terms of
Production System Design
IPD developed because we knew –
1. The inability to move money across
boundaries limited innovation;
2. Innovation occurs when teams are set
challenges that cannot be met by current
practice as in Target Value Design.
Leading edge: Choosing By Advantages & Target
Value Design
© 2011 Lean Construction Institute
Replacing the old coherent common sense with the new….not
yet entirely coherent

Lean/IPD

Traditional

Operating
System

Hierarchical
Siloed
Command &
Control

CPM
Specialists
Activities
Parts

Collaborative
Flat
Consensus

Lean - Flow
Sustainable
BIM
Choosing By
Advantages

Courtesy of Will Lichtig, The Boldt Company

Lump Sum
Low Price

Entrepreneurial
Collective
Best Value
A New Common Sense

Operating System
Optimize the Project and not the Piece.
1. Don’t just do what clients ask: Help them understand what they
want by revealing the consequences of their desires and make
them aware of unconsidered alternatives.
2. Design for whole life of constructed assets: Include costs and
benefits to use the asset.
3. Make it possible to move money across organizational and
contractual boundaries: Search for the best project-level
investments.
4. Supercharge Innovation: Challenge teams to perform beyond
current limits.
5. Reveal contingencies: Eliminate the uncertainty they are
designed to control
6. Apply all relevant criteria simultaneously to the evaluation and
selection from design alternatives: Choose by Advantages.
7. Bring materials and information to sites in work packages at the
Last Responsible Moment.
8. Simplify site installation to final assembly & commissioning.
© 2011 Lean Construction Institute
New Yorker Magazine, Jan 19, 2009

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Construction Management Philosophy

  • 1. An application to construction of a management philosophy defined by the ideal it pursues, the principles followed in pursuit of the ideal, and the methods used to implement the principles. © 2011 Lean Construction Institute
  • 2. Operating System © 2011 Lean Construction Institute
  • 3. X
  • 4. Current Practice: A Coherent Common Sense Optimize the project by optimizing the pieces. Pressurize each supplier/participant to preform by commercial terms. Use an activity-centered operating system to plan and manage the work
  • 6. The “Physics” of Business and Coordination 1 Request “Will you?” Offer Inquiry “Would you like?” Accepted PO Negotiation Submitted Signed CUSTOMER 4 Declare Satisfaction Conditions of Satisfaction & Completion Date COMMIT 2 “I Promise I WILL” PROVIDER “Thank you” 3 Declare Complete “I’m Done” 6 Courtesy Chauncey Bell
  • 7. Discovered the obvious – Workflow on projects is unreliable - Invented Last Planner® Developed Pull Planning to connect weekly planning with master schedule Reinterpreted Pull Planning in terms of Production System Design IPD developed because we knew – 1. The inability to move money across boundaries limited innovation; 2. Innovation occurs when teams are set challenges that cannot be met by current practice as in Target Value Design. Leading edge: Choosing By Advantages & Target Value Design © 2011 Lean Construction Institute
  • 8. Replacing the old coherent common sense with the new….not yet entirely coherent Lean/IPD Traditional Operating System Hierarchical Siloed Command & Control CPM Specialists Activities Parts Collaborative Flat Consensus Lean - Flow Sustainable BIM Choosing By Advantages Courtesy of Will Lichtig, The Boldt Company Lump Sum Low Price Entrepreneurial Collective Best Value
  • 9. A New Common Sense Operating System Optimize the Project and not the Piece.
  • 10. 1. Don’t just do what clients ask: Help them understand what they want by revealing the consequences of their desires and make them aware of unconsidered alternatives. 2. Design for whole life of constructed assets: Include costs and benefits to use the asset. 3. Make it possible to move money across organizational and contractual boundaries: Search for the best project-level investments. 4. Supercharge Innovation: Challenge teams to perform beyond current limits. 5. Reveal contingencies: Eliminate the uncertainty they are designed to control 6. Apply all relevant criteria simultaneously to the evaluation and selection from design alternatives: Choose by Advantages. 7. Bring materials and information to sites in work packages at the Last Responsible Moment. 8. Simplify site installation to final assembly & commissioning. © 2011 Lean Construction Institute
  • 11. New Yorker Magazine, Jan 19, 2009

Notes de l'éditeur

  1. Explain and describe the three opportunities created by LC. We will explore them in the order we came to understand them. And along the way we will explore the three domains of project delivery. Our aim is to illustrate the difference between the coherent domains of current practice and lean based project delivery.By impeccable coordination we mean the ability of the people on the project to do what they say they are going to do so that others may operate efficiently and follow closely.As coordination improves, the next opportunity is to take advantage of a particular workflow and design the project in production system terms we will explore this on the way.And in the course of designing projects as production systems, it will become obvious that the ability to move money across boundaries is a key to greater improvements.So we focus on the operating system a project management, we believe lean offers a new operating system and it is here where we focus the seminar. And we will explore the implications for organizational change and commercial terms.
  2. What is this thing called lean? We are here to report on the results of curiosity focused on how work is understood and done. There are lots of ways to look at this. Our aim is that you understand the basic vocabulary, underlying concepts and basic practices of Lean Construction.We expect this to challenge and surprise you and invite you to day of enquiry, to frame your thinking so that you can understand, remember and then evaluate once you have the pieces and understand their connections. We want everyone to leave with a plan for action. we encourage you to ask questions and challenge us when we seem a off-track.
  3. Explain and describe the three opportunities created by LC. We will explore them in the order we came to understand them. And along the way we will explore the three domains of project delivery. Our aim is to illustrate the difference between the coherent domains of current practice and lean based project delivery.By impeccable coordination we mean the ability of the people on the project to do what they say they are going to do so that others may operate efficiently and follow closely.As coordination improves, the next opportunity is to take advantage of a particular workflow and design the project in production system terms we will explore this on the way.And in the course of designing projects as production systems, it will become obvious that the ability to move money across boundaries is a key to greater improvements.So we focus on the operating system a project management, we believe lean offers a new operating system and it is here where we focus the seminar. And we will explore the implications for organizational change and commercial terms.
  4. Explain and describe the three opportunities created by LC. We will explore them in the order we came to understand them. And along the way we will explore the three domains of project delivery. Our aim is to illustrate the difference between the coherent domains of current practice and lean based project delivery.By impeccable coordination we mean the ability of the people on the project to do what they say they are going to do so that others may operate efficiently and follow closely.As coordination improves, the next opportunity is to take advantage of a particular workflow and design the project in production system terms we will explore this on the way.And in the course of designing projects as production systems, it will become obvious that the ability to move money across boundaries is a key to greater improvements.So we focus on the operating system a project management, we believe lean offers a new operating system and it is here where we focus the seminar. And we will explore the implications for organizational change and commercial terms.
  5. Fortunately, the paradigm – the way we see understand and act in the world is changing. Explain how Lean happened in construction, nature of the shiftHow people can legitimately say they have been doing this for years and where they blind.How lean challenges is replacing the current coherent approach to managing projectsMy best guess about where we are in that transformation and likely consequences.Support the case that There is no turning back.