TRANSFORMING
DESIGN AND
CONSTRUCTION
A Framework for Change
William R. (Bill) Seed, Executive Editor
LEAN CONSTRUCTION INSTITUTE
1400 North 14th Street, 12th Floor, Arlington, VA 22209 USA
www.leanconstruction.org
TRANSFORMING DESIGN AND CONSTRUCTION: A Framework for Change
Contributors: See Page 231
Publishing Manager: Tonya Vinas
Designer: Megan Lasalla, MHL Designs
Printed by: Signature Book Printing, www.sbpbooks.com
ISBN: 978-0-578-16842-5
© Lean Construction Institute
Lean Construction Institute
Transforming Design and Construction
Lean Construction Institute
1400 North 14th St., 12th Floor
Arlington, VA 22209 USA
www.leanconstruction.org
TRANSFORMING
DESIGN AND
CONSTRUCTION
A Framework for Change
Lean Construction Institute
1400 North 14th Street, 12th Floor, Arlington, VA 22209 USA
www.leanconstruction.org
CONTENTS
Transforming Design and Construction: A Framework for Change
Foreword............................................................................................... 7
Transformational Change
1. Lean Construction Overview........................................................ 15
2. The Value Proposition..................................................................... 19
3. Learning to See Waste.................................................................. 23
4. Lean Construction Defined............................................................ 27
5. Visual Management & Communication..................................... 33
6. Individual Assessment & Development....................................... 37
7. Noticing & Declaring Breakdowns............................................. 43
8. Team Forming & Team Initiation.................................................. 47
9. Cost Forecasting in Early Project Phases................................... 53
10. Facilitation......................................................................................... 57
11. Continuous Reflection..................................................................... 65
12. Leadership & Lean IPD Projects................................................... 69
13. Coaching.......................................................................................... 73
14. Respect for People.......................................................................... 77
15. Hierarchical Vs. Distributed Leadership...................................... 83
16. Retrospectives.................................................................................. 89
Integrated Project Delivery Strategy
17. Risk & Opportunity Register.......................................................... 95
18. Experienced Lean Partners (Big L)............................................... 103
19. Early Stakeholder Involvement..................................................... 107
20. High-Performing Teams.................................................................. 113
21. Team Partner Selection.................................................................. 117
22. Choosing By Advantages............................................................. 127
23. Project Conditions of Satisfaction................................................ 133
24. The Shared Risk/Reward Business Deal................................... 139
Lean Project Delivery Methods & Management
25. The Last Planner® System............................................................... 147
26. Reliable Promising........................................................................... 151
27. Cluster Groups................................................................................ 155
28. Hand-off Work Planning................................................................ 159
29. Daily Huddle.................................................................................... 167
30. Production Design System............................................................. 173
31. Continuous Improvement............................................................... 179
32. Onboarding Team Members....................................................... 187
33. Go to the Work............................................................................... 191
34. Collaborative Budget Management.......................................... 195
35. Plus/Delta......................................................................................... 201
36. Agendas............................................................................................ 205
37. The Mindset of an Effective Big Room....................................... 209
38. Value Stream Mapping................................................................. 213
39. Work Structuring............................................................................. 217
40. A3 Thinking....................................................................................... 223
41. Continuous Estimating.................................................................... 227
Contributors.......................................................................................... 231
Appendices
Glossary..................................................................................................... 243
Simulation Matrix..................................................................................... 259
Alpha Index for Topics.................................................................. 262
About the Lean Construction Institute................................................... 265
Ordering Information for More Books................................................ 266
FOREWORD
For many years, participants in the construction industry have been frustrated with
the success of our projects. The costs continue to outpace inflation. The time required to
complete continues to grow. More technology complicates both the product and the
process. The construction profession has lost much of its respect as is evidenced by the
decline in college enrollment and trade and craft training.
The innovators in our construction industry have been looking to the manufacturing
industry in an effort to learn how they have been able to see significant productivity
and efficiency gains over the last 50 years. Specifically, they have looked to Toyota’s
success with the Toyota Production System (TPS) and have tried to adapt the
production principles and Lean tools in their design and production practices.. Early
adopters of this new way of addressing construction projects have seen significant
improvement in both individual projects and across their practices. Unfortunately, the
recipe for applying these Lean production principals to construction has been generally
unique and undocumented.
In an attempt to share experiences and lessons learned, Communities of Practice
(CoPs) have been set up in many large cities across the United States and globally. At
these CoPs, local practitioners share with each other the tools and practices they are
attempting and the successes they are having on a limited basis, as time allows. While
this is excellent for those in attendance, it is a very slow method for improvement across
a large industry and is dependent on interpretation from CoP to CoP.
Over the past year, the many diverse contributors to this book have come together
in an attempt to define the most important aspects of the transformation that has taken
FOREWORD 7
place on the projects and experiences of their collective practices. These contributors
span the breadth of the industry including owner representatives, designers, builders,
specialty contractors, educators and consultants. In two weeklong meeting events,
and numerous hours in between, they have collaborated to create this Framework for
Learning.
We collectively believe that Lean thinking is the mindset necessary to improve our
industry. The Fundamentals of Lean are as follows:
• Strive to understand value from the customer’s perspective and take only actions
that deliver that value. This helps eliminate waste.
• Waste is disrespectful: to humanity, it squanders resources; to individuals, it adds
work; to clients, it adds cost/time/aggravation.
• Become a learning organization through relentless reflection and continuous
improvement as a team.
• Respect for people through inspiration and empowerment driving engagement and
improved results.
• Develop principles that are right for the organization and diligently practiced to
achieve high performance.
Lean/Integrated Project Delivery (Lean/IPD) is a method of developing and
managing a project through relationships, shared knowledge and common goals.
Lean/IPD attempts to break down traditional silos of knowledge, work and effort; and
reorganize it through a total value stream approach to the betterment of the project
rather than the individual participants.
Using the Lean mindset and the Lean/IPD methods has proven to drive significantly
improved results. However, this mindset is a significant transformational change from the
experience of most industry participants; and thus, requires participants to be prepared
to begin and continue their learning journey.
To assist those who are preparing to begin their Lean/IPD journey, this Framework
for Learning has been created to organize the learning. This framework was developed
considering the three domains of a design and construction effort developed by the
Lean Construction Institute (LCI) and adding to the meaning of each leg of the triangle:
8 Transforming Design and Construction: A Framework for Change
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The above LCI triangle indicates that each of the three legs is necessary for a
successful project endeavor. Each project requires an organizational structure, an
operating system and a commercial structure. We have expanded these concepts to
include Lean Project Delivery Methods and Management Systems as the Operating
System; Integrated Project Delivery Strategy as the project Commercial Structure; and
Transformational Change to the way the Organization will think, learn and behave.
Lean Project Delivery Methods & Management
This category focuses on the production system and the tactical tools and practices
that have been shown to drive improved results when applied correctly. These means
and methods can be employed individually or together depending on project need.
These tools generally can be applied to any project regardless of contract terms or
formal relationships. They can be applied by one participant or all as a team. They
often can be applied to office functions, shop activities or any specific effort interested
in improvement. A word of strong caution though: Lean is not about tools but a mindset.
If these tools are applied without the changed mindset, it is likely the tools will add to
the work of the project rather than simplify and improve it.
FOREWORD 9
Integrated Project Delivery Strategy
This category focuses on choosing partners, building teams and aligning goals
amongst the team members, often in commercial terms. These aligned agreements can
be applied as a project strategy for an individual effort or as a procurement strategy
for long-term relationships for those who build repetitively. While these practices can be
maximized through the use of an Integrated Form of Agreement (IFOA), they also can
be utilized in a best value selection process with fixed price or other bonus and shared
savings relationships.
Transformational Change
This category focuses on how everyone must think and behave differently to affect
significant change. These topics are really about changing the culture of a project and
creating an atmosphere for innovation and improvement. The learning required for
this transformation must be taken seriously if significant improvement is the goal. These
topics can be learned and applied without the use of an IFOA but would then require
significant owner leadership commitment and involvement.
We believe the more proficient in each of these three categories the project team
can become, the better the results will be. We also believe to maximize the benefits
of these practices requires the use of an IFOA; however, we also understand not all
organizations are poised to do so. We firmly believe that effective use of these tools,
strategies and practices will improve any project with any commercial terms.
The chapters presented in this book are intended to encourage learning and
experimentation. They alone will not offer sufficient knowledge to implement all of these
concepts. They will however make you aware of what is possible and provide common
language for the Lean construction community. This should help direct readers further
along their learning journey. These chapters make excellent material for Study Action
Team reading. Pick a topic, read the chapter, then discuss how to apply it to your
situation. Make a plan, do the plan, check the outcome, adjust the process and you will
be on your way.
10 Transforming Design and Construction: A Framework for Change
Note to Reader
You are about to embark on a challenging yet rewarding journey. Shifting to Lean
delivery is referred to as an adventure because it is exactly that! It entails learning step
by step how to do things differently. It truly is a shift to new behaviors and thinking to
form new habits. It entails change, and change is never easy. But it can be fun, and
the outcome can be rewarding in many ways. The best advice is to relax into the new
ways, open up to new ideas and processes, enter into it with an adventurous spirit, and
have fun. It is important not to become overwhelmed by the changes. One must learn
one step at a time.
William R. (Bill) Seed
Executive Project Integration
Walt Disney Imagineering
FOREWORD 11
12 Transforming Design and Construction: A Framework for Change
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14 Transforming Design and Construction: A Framework for Change
