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A3: Business Case for forming a Lean & Integrated Project Team


This week we want to make the Business Case for establishing a Lean & Integrated Project Team. A high performance TEAM that is beyond Forming, Storming and Norming stages of group development and are ready to kick ass to create value for a demanding client. Clients that get that the building industry is DYSFUNCTIONAL, demand EXCEPTIONAL VALUE and are willing to CHANGE the process.

BACKGROUND

The traditional design-tender-build process that delivers late and over budget is being disrupted by teams that understand why our industry is DYSFUNCTIONAL. When we put a cast of characters together based upon low tender price we do not have trust, commitment and accountability to deliver a best value project. The building industry recognizes that there is a better, more collaborative approach to building Integrated Project Teams that have Systems for significantly improving the project delivery process.

CURRENT CONDITIONS ... Dysfunctional Industry with Early Adoption of Lean Construction

LCI-Canada has been operating for 4 years now and there is growing awareness about how lean construction can be used to deliver better value in less time with less risk. The industry is in the early stage of development with only a small percentage of the new building market requesting Lean Project Delivery services. This provides challenges when trying to find customers and in assembling an experienced team. It is also an opportunity to develop mastery in this emerging market and increase market share.

The business challenge is to identify clients that get that there is a better way, want higher performance at less cost and are willing to change the process of how to deliver projects.

FUTURE STATE ... Lean & Integrated Project Teams

The IDEAL Integrated Project Team (IPT) would be the “A Team” of players that have progressed through the Forming, Storming and Norming stages of group development and are performing at the mastery level of Lean Project Delivery. The team would be capable of delivering EXCEPTIONAL value using the following systems.

  • Big Room Value Management (BRVM) : Collaborate with a highly engaged team delivering the right work in the right sequence to optimize value, performance and the business objects of the entire project team. Success is measured by meeting the Team's Conditions of Satisfaction (COS) and the Owner's Project Requirements (OPR).

  • Target Value Delivery (TVD): Facilitate the delivery of a design to meet the OPR using pull planning, BIM, dynamic costing, Integrated Design and collaboration to achieve an early construction start at a cost 18% less than a traditional build.

  • Last Planner System (LPS): Implement the LPS system to plan, deliver and manage the efficient delivery of a fully coordinated project with the goal of delivering all projects 3 to 6 months early.

  • Lean Commissioning (LeanCx): Adopt a proactive commissioning process that enables teams to achieve building performance objectives at substantial completion as opposed to 6 to 60 months later which is the current industry norm.

Average People with Brilliant Systems Can Deliver Exceptional Value

ANALYSIS ... Is there a Business Case?

Early adopters of LPD are able to deliver projects at 30% less cost and 4 to 6 months early which helps create a competitive advantage in the market place for securing work. It also leads to repeat business for negotiated work. Based upon the success of LPD in establishing strong business relationships that leads to repeat business, it is proposed that companies wanting to create a competitive advantage, form Integrated Project Teams.

ACTION PLAN ... Next Steps forming an Integrated Project Team

The formation and management of an Integrated Project Team involves hand picking an "A Team" based upon the desired capabilities of trust, collaboration and the desire to deliver industry best value projects. This will require ramping up the team on Lean Project Systems and developing mastery in lean production methods and practices.

If you need help building your IPT team, Shift2Lean can help with Lean Project Workshops and Systems Development, Integrated Designs has the expertise in Lean Commissioning (LeanCx) and providing fully integrated green building design solutions.


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