1. Goldratt Consulting Regional Director
Japan TOC Advancement committee Director
Yuji Kishira
Win-Win-Win Public Works

2. Japanese Public Construction Current Status
Government spending cut by half
Over 500,000 construction companies
Small and medium-sized local construction companies
A series of large scale disasters are still fresh in
our memory and the importance of public works
is being actively discussed widely

3. Transition of construction investment
0
10
20
30
40
50
60
70
80
90
51 52 53 54 55 56 57 58 59 60 61 62 63 元 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
民間投資額（兆円）
政府投資額（兆円）
(one trillion yen)
Ministry of Land, Infrastructure and Transport"Construction investment prospect"
ear is foreseen expecting the amount of the investment until 2002 fiscal year as for results and 15 fiscal year and 16 fiscal year.
ion investment in government investment that country, local authority, and independent administrative agency, etc. do
- 19 -
Huddle Waste of
Tax
Many
Scandal

4. Continuing natural disasters

5. Ratio of amount of natural disaster damage
Japan: 15%
USA: 22%
Germany: 2%
Britain: 1%
France: 2%
The other :
58%
(1970 - 2004)
Japan - Only 0.25% of geographic area of the world accounting for
15% of the amount of the world of the natural disaster damage

6. (1985-1994)M4 or more and 100km in depth Asa of hypocenter
Earthquake distribution chart of the world
From the Ministry of Land, Infrastructure and Transport material

7. Expensive construction cost on severe country condition
- Japan is an earthquake large country, and the measures cost is necessary.
Pier of Hanshin Expressway
Charles de Gaulle Airport
Pier on access road
In the majority of regions in France, there is no necessity of the seismic design.
From the Ministry of Land, Infrastructure and Transport material

8. Conflict
Undesirable Effect(UDE)
UDE of public works contractors
･ Huge deficit
･ Budget cut of public works
･ Bashing that continues every day
･ Local contractors bankruptcy due to a
dramatic decrease of public works investment
Taxpayer's UDE
･ Waste of tax
-Huge deficit
･ Huddle and many scandals
･ Large-scale natural disaster
･ Can’t see what they do

9. Outside of the project
Project Team
Members
Not enough
budget/resource
Not enough time
Slow decision by
customer or
management
Information not
shared timely
Suppliers’
delivery delay
Change request
all the times
Can’t get support
from other people
Can’t get
management
support
Working Very
Hard!

10. Four elements of critical chain
1.ODSC “SURIAWASE”
2. Backward scheduling “DANDORI HACHIBU”
3.ABP(Aggressive But Possible) “YUTORI”
4.Buffer Management “SENTE KANRI”
CCPM reminds us Japanese shop floor best practices
LOGICALLY
→ Consensus making to have shared goals
→ Preparation is 80% of the success of the project
→ Educate people while providing concentration
→ Take action before too late

11. Critical Chain Project Management
human problematic behaviors are:
- Parkinson’s Law (use all the time and budget given)
- Murphy (anticipate unexpected problems and estimate longer
schedules for tasks)
- Student Syndrome (start slowly and work overnight before the due
date)
- Unreported Early Finishes (finish early but use all the time for
elaboration)
- Multi-tasking (give top priority to all tasks and start them earlier)
It is PEOPLE who run task!

12. Questions
1. Need to pick up your friend at the station at 10AM.
When you leave here?
2. Need to pick up Very Important Person at the station
at 10AM. When you leave here?
Difference, Why?
I need
Safety!
Safety bugs loves RESPONSIBILITY.

13. When Safety in the task is remove
12
8
6
8
10
6
6
6
2
3
4
7
1.5
1.5
4
3
8
3
Experience and
know-how Hands
on transfer to
young engineers
More motivation
to deeply think to
finish on time
The person in the next
task anxiously waiting to
start on-time
The boss
protect the site
with the buffer.
The chain of
challenging spirit.
Source of the
Team work
Report problem
before too late
Project Buffer
=
OYAKATA Buffer

14. BUFFER MANAGEMENT
Looks like
exactly what
excellent
OYAKATA
DOES!
The buffer management takes a measure before it becomes too late.
Tool of “Prevention management"
先手管理： SENTE KANRI

15. ODSC
Objectives
Deliverables
Success Criteria
Build bridge
Build bridge
Build bridge
The mechanism exist to confuse
the means with the objectives
すり わせ合 ： SURIAWASE

16. Backward Planning
It is a usual and natural idea.
TargetTaskTaskTask
Success senario
The necessary condition logic
To take the 10 o'clock train
り段取 八部： Dandori Hachibu

17. First Critical Chain Implementation
Young foreman

18. ODSC: Objective, Deliverable, Success Criteria
Objective -Reinforce river bank for flood protection
-Protect local residents from typhoon
-Build high quality easy maintenance river bank
-Must be completed by Aug before typhoon season
-Build trust with government officials and local residents
-Make high profit (Pay tax)
Deliverable -Super reinforced bank
Success
Criteria
-Complete by the end of July
-Quality rating > 85
-Profit >16%
-Zero accident

19. Test Run Project Results
30% Reduction project duration
Sharing Know-how with young foreman
Foremen participation to Managment
Collaboration acceleration with subcontractors
3month Early Cash Flow
“Endo certainly made great profits in this test project,
but far more important is his growth. Endo definitely
Changed. He became a really dependable foreman.
The Tonebetsu River project is already project in the past
which achieved a great result.
For Endo, the real challenge is to see achievement in
the next project given. (I believe he will make it.)
The best outcome of the Tonebetsu River project is that
Endo became one of our best foreman, which is aided
by CCPM.
We can expect more profits from Endo’s projects now and
in the future, which is far more important of this single
project success. That is because Endo has overcome a
barrier. It’s really amazing.”

20. Can we help RED project?
I will finish my project early
and help RED project.
We will also help it!
We will offer our resource to
Help RED project
Each project manager starts to care the other projects
with management view!
思いやり： Help each other

21. Shared Safety means
It is late because of
me ･･･ .
Source of teamwork
Multi-tasking prevented and allowing concentration on one task
The buffer management is a tool for Sente Kanri
Mutual trust to show of bellies each other

22. Situation of present public works
(public office side)

23. Construction economy report No.46 Quotation from P104 in April, 2006
Research Institute of Construction and Economy
Current Reality Tree structural tree
One Day Response Project!
Information does not
transfer to contractors
timely manner
Resource shortage
Or Excess resource
Sudden works
required
Slow finalization of
Spec
Cost
increase
Synchronization
information
DAI MONDAI !

24. Contractors can be chosen
by quality history, proposals
and cost
Contractor can
Make quicker
decision
Public works finish
earlier
Implement
One Day Response
Project
Contractors have
effective information
during constructions
Contractor management
understand status
Contractors can
choose the bit
Contractors get
higher quality
record
Have more
advantage in the
government bit
Contractor can
Make a effective
proposals
Government
supervisors get more
flexible for change
Public works wiill
provide good quality infractruture while
supporting government financial
difficulty turnaround
Contractors make
profit
Tax income
increase
Enhance competancy
of government
supervisors
Realize economic
effect ealier
Government
supervisors are
more motivated
Make Tax payers
/resident
happy
Contractors are
happy
Quality of public
work law
implementation
Win Win
Win
One Day Response project

25. Critical chain project network of One Day Response project
Move construction faster
Shorten lead time for construction works
Eliminate idle time during construction
Contractors make profits
Buffer safety makes safer and high quality works
Communication enhancement
Good for environment and local resident
Realize economic effect earlier
Human resource development

26. One Day Response project test construction
Contractor Public Office
･ Easy to guide because it consults ahead of
time.
･ The overtime work decreases.
･ The royal road of OJT.
･ Officer's role in public works reminded
･ Human resource development
･ Construction finish earlier
･ Teamwork with contractors/officers
･ Residents are very pleased
･ Quality enhancement.
･ See the brightness in the construction
Business in the future
Resident
･ Experess our gratitude for construction's ending early.
･ An inconvenience under construction finish early.
･ It becomes convenient.
･ Good teamwork of contractors/offices makes image drastic
Image change of public works
･ The load to natural environment is surely reduced, too.
The works
without
safety
constructs
mutual
trust.
Quick response
Educate people
quickly
Quick action
creates trust
Construction is
uncertain.
Without Safety
It is not
competent.
Learn by
experience of
their own
A bureaucracy
Is always slow
Win
Win Win

27. Unexpected synergy effect
Public Office
One Day
Response
Project
Contractor
TOC
Critical chainTrust
Return to the origin of public works
Sharing buffer : the source of team work.

28. Communication & Collaboration
Command & Control
Simple
Complex
Communication
Control
Superficial
report
Kishira's 3C Management Positioning Map
Do it
Forced to
do it
Head QTR
control
project
Job
description
Make
manuals
and rules
Distrust
Rigmarole
Fulfillment Commitment
Project manager
manage project
Make profit
with
teamwork
Trust
Human
Focus
Report simple
remaining date
Management by
developing
manual people
Management by
developing
human resource

29. Big change in management focus
ODSC
Buffer
Individual
progress
Safety
Management
YUTORI

30. One Day Response Level
CCPMLevel
９％
Profit Increase
４％
Profit increase
28% delay
１０％
Profit increase
5 pilots project result in Kochi Prefecture5 pilots project result in Kochi Prefecture
Low
High
High
２％ Profit decrease (due to big change of material)
But it duration is 50% reduction
-Duration 20% reduced in average while 28%
delay in non-CCPM site
-Profit 7 % up average
-Average quality point : 80 (where general
average is 73)
Low
Source: Kochi Prefecture

31. Construction quality enhancement
By CCPM in Kochi Prefecture
72
73
74
75
76
77
78
79
80
81
82
Ｈ１８全工事 Ｈ１９全工事 Ｈ１８ﾜ ﾝﾃﾞｰ Ｈ１９ﾜ ﾝﾃ ﾞｰ 礒部組
Standard ＣＣＰＭ

32. Declaration of Win-Win-Win Public Work Reform
May 8 2007
We strongly remind ourselves of our very important responsibility of public works to
secure people’s safety and national land safety. To bring out maximum benefit for
society, both government officials and contractors work together on public works by
providing better products with faster speed. This brings benefits to all of residence,
government and contractors and support to overcome financial difficulty of Japan
Government. We declare herewith we strongly advance Win-Win-Win Public Work
Reform.

33. One Day Response Update snap shot in Japan
FY2005 1 pilot run
FY2006 15 MLIT Hokkaido Pilot runs
FY2007 2523 MLIT across Japan
FY2008 >4000
FY2009 >12000 all MLIT public construction
Many positive feedbacks to request to expand more from contractors
Around half of 47 prefectures started pilot runs
Some of major cities throughout Japan started implements

34. TroublesTroubles
ClaimsClaims
BudgetBudget
CutCut
NaturalNatural
DisastersDisasters
PoliticalPolitical
ScandalsScandals
Too much work
chasing at us!
Can not live
anymore in this
situation!
But what we
can do?
Sick employees
De-motivated

35. 2006 Miyazaki Prefecture
Aug Nikkei Construction Kyoto Prefecture Article
Sept Construction Management Meeting in Kyushu
CCPM Seminar by Yuji Kishira
Nomination of pilot project
Nov 1 Started the project
Nov 16 Scandal

36. Kataino River Bank Emergency Flood Protection One Day Response Meeting
2006 Dec 08 (When Governor, general manager, managers arrested)
Joint meeting contractor and Government official
Let’s fight with time together!

37. Critical Chain saves 30,000 people lives
In Miyazaki prefecture

38. Over 120 executives learn TOC every
year as official training
MLIT University
Ministry Land, Infrastructure, transportation and Tourism

39. Dr. Eli Goldratt comment
Toyota changed plants worldwide and in the future, it will be said that MLIT changed
all government management. You should recognize such huge impact to the world

40. Mr. Andres Uriel Gallego
Minster of infrastructure
Ms. Carolina Renteria
Director general
Economy planning
Visited Colombia Government in 2008

41. Top page of project management magazine
2009 Aug Brazil
Key note in conference
WA book published

42. 2009 Korea

43. Workshop of Win-Win-Win public work in Fukushima
2010 Dec

47. ODSC in Gemba (construction site)
週間作業予定
表
ODSC Finish picture
Very good
objective for us!
Voices from local residents
の より福島県 発表資料 引用

48. Evaluation of Proof of Concept
completed Reduced

49. Disaster Mega EarthquakeDisaster Mega Earthquake
Mar 11 , 2011Mar 11 , 2011

50. Ｉｃｈｉｂａ
ｎ !
Ni ｂａｎ !
Focus! Objectives! Shared in Gemba!

51. Message from Fukushima government officers
We will rebuild beautiful Fukushima!

52. Decreasing
･ High Pressure
･ Negative discussion
･ Waste of time and money
･ Worry/Stress
･ Accidents
･ Complex document and report
･ Conflict
･ Silo decision
･ Big enterprise disease
･ Worry about resource development
･ Irritation
･ Complex discussion
- Errors/Re-work
･ Overtime work
Increasing
･ Flexibility
･ Positive discussion
･ Focus
･ Safety
･ Custom of thinking deeply
･ Helping each other and empathy
･ Smiling faces – happy employees
･ Holistic decision
･ Team work across organizations
･ Wonderful personnel growth
･ Fulfillment
･ Profit
- Quality
･ Time with family-Quality of Life
Decreasing and Increasing By CCPM

53. Project environment
Uncertainty ！Risk!
Safety BugPerkinson’s law Bug
Student Bug
Copy Right Mayuko Kishira
Polishing Finish BugMultitusking Bug

54. Spirit of “WA”
和Respect harmony .
The first charter of Japan first constitution
AD604 (Shotokutaishi)
Win-Win-Win
Good for customers, Us and Public
(Omi business principle )

55. Three Japanese Words to Know about Project
MONDAI NAI!
No Problem!
Dandori Hachibu
Preparation is 80% of your project sucess
WA
Harmony, Peaceful, Japanese

56. yuji.kishira@goldrattgroup.com
Win-Win-Win Public Reform Symbol
Now Everywhere In Japan
This is just a beginning to make a our world little better
DOMO ARIGATO GOZAIMASU!

57. Special thanks to
Dr. Goldratt
to warm appreciation and
Credit to my work