Agile outside IT, London - 23rd January 2018 Stuart Grey and Chris Jones

1. Agile & Lean in
Construction

2. Agenda
• Introductions
• Construction Industry – Reason for Change
• The Challenge for Willmott Dixon
• Suiko , The Suiko Method
• Looking forward , The Willmott Dixon Way
• Questions

3. Introductions

4. • Family owned business
• Turnover circa £1.5bn
• UK wide coverage
• Construction, Property
Development , Interiors

5. • Turner & Townsend Suiko are experts in Operational Excellence. We improve efficiency,
sustain improvements and grow profit within our clients’ business.
• Our teams’ backgrounds include:
Our clients include:
Service:
Construction:
Manufacturing:

6. Construction Industry - Reason for change

7. Video 1 – Productivity Improvement

8. Construction Industry reason for change
• Globally construction labour productivity growth averaged 1% over last 20 years,
compared to 2.8 % in the total world economy and 3.6% for manufacturing
• Productivity since 1945 in manufacturing, retail and agriculture has grown by as
much as 1,500%, but productivity in construction has barely increased at all in
construction
• UK Construction over last 20 years has become 0.8 % less productive than the
overall UK economy labour productivity
McKinsey Global Institute – Reinventing Construction : A Route to higher
productivity – Feb 17

9. Construction Industry reason for change – Cont .
• Low productivity and predictability identified as critical symptoms of failure and
poor performance
• Lack of collaboration and improvement culture widespread within the industry
• Labour availability major issue in the industry being able to fulfil demand
• At Industry finishes circa 71% of low rice projects on time , and only 33% of high
rise

10. Construction Industry reason for change – Cont .
• 700,00 people needed to replace those leaving and additional 120,000 required
to meet demand
The Farmer review of the UK construction labour model :
Modernise or die – Oct 16
• 23 % London workers are Eastern European with an anticipated 8% reduction
post Brexit
RICS – Mar 17

11. Construction Industry reason for change – Cont .
• Reluctance to change within the industry
• Practical completion not actual completion
• Every project is unique
• Contractual relationships promote Win – Lose results
We can’t continue the way we always have

12. The challenge for Willmott Dixon

13. The challenge for Willmott Dixon
• 2014 - New director of Construction
• 2015 – Building on better launched
within the business
• 2015 – Innovation and improvement
teams launched across the business
• 2017 – Building life's less ordinary
launched
• 2017 – Introduction of the National
Product team

14. How do we build on better ?
• Improve project performance both for delivery and quality at handover
• Move towards actual completion
• Improving planning competence at all levels within the business
• Work more collaboratively with our supply chain partners across all stages
of the construction process
• Bring the people with us on the journey
• Introduction to the business Everyone Can Plan

15. Video 2 - Everyone Can Plan

16. Our Agile journey – Long term horizon
• Traditionally waterfall , Gantt
charts are the way in which we
manage our projects
• Contractually we can not change
this as industry standard
expectation
• We can better define our long
term plans through collaboration
• Decision to look at alternatives for
medium and short horizon
planning

17. Our Agile journey – Medium term horizon
Develop collaborative plans with supply chain partners

18. Our Agile journey – Short term horizon
Actively manage short term actions in line with collaborative plans

19. Our Agile journey – Short term horizon

20. Our Agile journey – Short term horizon

21. Our Agile journey – Short term horizon

22. Our Agile journey – Issues

23. Our Agile journey – Issues
Photo taken on the 24th Feb 17

24. Romford Leisure Centre

25. Romford Leisure Centre

26. Video 3 – The Romford Experience

27. It’s not a tool or
solution
It’s a behaviour

28. Suiko – The Suiko method

29. Methodology
Suiko Why™: the compelling reason to change … achieving exceptional
results by bridging the performance gap and embedding better planning
processes
Suiko What™: 20% tools and 80% behaviours … embedding Lean best
practices into planning by taking the right steps in the right order
Suiko How™: the enablers to make it happen … working closely with
your teams in accelerating, building capability, and sustaining the
change

30. Key Principles
• Lean studies have time & time again proved the ¼ , 2, 20 rule to be true
– ¼ - Reduce lead time by 25%
2 - Double productivity
– 20 – Reduce operating costs by 20%

31. Approach to projects
-6 months 2 months-0 months 6 months 18 months
Group Programme
Perfect
engagement
Platform
preparation
Prove
process
Push to
pull
Programme
excellence
Executive Management Value stream Business unit/s Group
Complete executive level
commitment to programme
Diagnose current state
Scope programme
Raise Excellence awareness
Pilot way of working in an initial
focus area
Roll out to other business units Continuously improve in all areas
and functions
Best possible start to programme Benefits identified in
■ Cost
■ Profit
■ Cash
Proven exceptional return on
investment
Prove approach and method
Scaled up benefits
Profitable growth through impact on
cost, profit and cash
Profitable growth in all aspects of
the business maximised
Value seen by all stakeholders
Headline plan aligned with
strategy
Prerequisites met
Management buy-in
Benefits identified
Framework and plan
Way of working established in pilot
area
Momentum created
Strong demand from all areas of
business
Internal capability build
Group wide Excellence
Accreditation
DescriptionBenefitOutcome

32. Suiko What™ levels

33. Level 1 - Foundation
• Develop understanding and create environment to prepare team for Operational Excellence journey
• Establish clear roles, responsibilities & accountabilities for all key team members at all levels
• Determine measures & methods to capture data & trends
• Create environment for collaborative working on site
• Collective understanding of the project
• Define high level programme
• Identify any issues & risks
• Multidisciplinary cross trade team structure
The start of our Operational Excellence journey

34. Level 2 - Control

35. Level 2 - Control

36. Level 2 - Control

37. Level 3 - Improve
• Multi functional teams working together with shared objective
• Participants from all parts of the project management
• Design, commercial, supply chain, engineering
• Key subcontractors
• Collaborative planning
• Problem solving
• Making it visual
• Sharing success
30%
reduction in
delivering
£300k
saving

38. Continuous improvement
• Focus on building on foundations & improving performance
• Guide & support the team to drive subcontractors
• Problem solving through Action Teams & workshops

39. Dudley House

40. Dudley House

41. Dudley House

42. Dudley House
• 3 Section action plans
• Daily reviews in each section
• Daily project review
• Weekly review of
performance
• Monthly steering meeting

43. Looking forward – The Willmott Way

44. Looking Forward – The Willmott Way
• Running on 5 Projects , soon to double
• Embedment of the principles with the business
• Key mentors and Lean leaders across the business
• A Suiko project in each LCO
• Developing the Willmott Way solution that will become the way that we do things here
• What will we look like in 12 – 18 months

45. Questions
Stuart Gray – Willmott Dixon , National Planner
Stuart.gray@willmottdixon.co.uk
Chris Jones – Turner Townsend Suiko, Director
chris.i.jones@turntown.co.uk