The Sun Never Sets on
a Disney Resort!
Disneyland Paris, France
Walt Disney World, Florida
Disneyland Resort, California
Tokyo Disneyland, Japan
Hong Kong Disneyland, China
Shanghai Disneyland, China
Our Challenges
All work publicly tendered
Maximum Bid set by Government
Cannot buy required level of service
Exhaustive legislation
The Workforce
Non-skilled vs unskilled labor
Unlimited human commodity
Low use of mechanized equipment
Poorly enforced safety and quality standards
85% turnover rate
Completing the work
Large companies, inconsistant operations
Hierarchal decision making
Who completes design?
No trade coordination, first in
Vertical integration vs layering
• Compelling the Government for services required
• Research best in class
• Understanding completed design
• Owner sponsored training for safety, quality
Our Key Learnings
John PembertonV.P. Technology Manufacturing Group
General Manager of Global Construction
Intel’s Mission
2
Utilize the power of Moore’s Law to bring smart, connected devices to
every person on earth.
Intel’s Vision
If it is smart and connected, it is best with Intel.
3
Data Center Client Ultra-Mobile Wearables/IoT
Construction Dilemma…
We can do better!
Owner’s ResponsibilityWe are part of the problem
Construction Supply Chain
Contractor
External Supply Chains
Owner
Architect & Design
Supply Clusters
Supply & Work Clusters
Leadership
We started our journey. All we had was “D”
External Learning
Construction Story
Enterprise Vision
GOST Goals, Objectives, Strategies, Tactics
Culture Behaviors
Keeping Score
Construction Revolution Journey
Feb 2013 Nov 2013 Jan 2014 June 2014 Sept 2014
T-Shaped
Cutting Waste is Good Business
Maximize Value…..Higher Profits
Shared Savings
Value25%+Waste
8 Types of Waste “TIMWOOD +1”
Transportation
• Site Logistics & materials
• 10% of material cost is air freight
Over Production
• Excessive documentation
• Install equipment before need
Inventory
• Parts or tools in the warehouse
• Design packages
Over Processing
• Checkers checking checkers
• Request for Information
Motion
• Site Logistics- lunch tent location
• Material staging
Defects
• Quality rejects & rework
• Claims
Waiting
• Permits & materials
• Bids, procurement process
+1 Non-utilized talent
• Right job, Right Skill, Right Time
MFG
US Distributor Subcontractor GC/DB
Ireland
Arizona
Shipping/Duty
$73.49
$107
8” DuctMfg $46.35
TransportationTransportation
• Site Logistics & materials
• 10% of material cost is air freight
InventoryInventory
• Parts or tools in the warehouse
• Design packages
Just in Time Delivery is optimal. What
manufacturing calls Theory of Constraints . Results
in 57% duration reduction.
Before
23 days
After
10 days
MotionMotion
• Site Logistics- lunch tent location
• Material staging
11%
72%
17%Breaks
NVA
VA
32%
57%
11%NVA
VA
Breaks
Waiting21%
Discussion
2%
Retrieving
Materials0%
Rework0%
Moving3%Safety
1%Set-up
1%Observation0%Cleaning4%
Measuring
0%
Consult Diagram
0%
VA57%
Breaks11%
Testing0%
Before
17% Value Add
After
57% Value Add
Design
GC Selection
Standard Sequence
Trade Selection
Construction
Waiting
Need to eliminate waiting from critical path. We
have designed the procurement system because
we believe that’s how we are getting value.
WaitingWaiting
• Permits & materials
• Bids, procurement process
Overproduction
0
10000
20000
30000
40000
Goal
# of pages
Over Production
• Excessive documentation
• Install equipment before need
Waste
Intel providing excessive
requirements &
documentation
Results
Intel went on a “Doc Diet”
and so far have reduced
44% pages and on our way
to achieve our 75% goal
Over ProcessingOver Processing
• Checkers checking checkers
• Request for Information
-
5.00
10.00
15.00
20.00
25.00
30.00
RF
I p
er
$M
Project Size $M
2 Bright Spots with RFI/$M=1
DefectsDefects
• Quality rejects & rework
• Claims
Defects/Construction Complete:As high as 12 down to <1
Quality Breakthrough1. Define what good looks like with our partners
2. Objectively look at same data
3. Mock-ups of what good looks like
Result went from >12 to <1 and everyone wins!
Non-Utilized Talent+1 Non-utilized talent
• Right job, Right Skill, Right Time
Owner 1st Steps
1. Listen & Remove “Intel Tax” –Productivity ideas
2. Eliminate Excessive Requirements “Doc Diet”
3. Collaborative Contracting
4. Supplier Expectations to Share & Learn
Change the Mindset
Lean Thinking
It’s the Lean Thinking not
just the Lean Tools
Lessons from Toyota
Optimize the Whole
We need to optimize
across the supply chain
We need to band together
to make the change
Adoption Curve
We need your help!
13.5%
We Can Do Better
• Let’s measure and improve
• Common success denominators:
1. Transparency
2. Objective data
3. Single version of the truth
4. Win-Win approach
• When these 4 are working….improvement is possible!
Closing Thoughts
• Thanks to our Pioneers “Early Adopters” who are leading the way – Disney & Health Care
• Assess your change equation – are you dissatisfied?
• Are you interested in learning more about the how on Lean or Integrated Delivery?
– We would like to connect with other Dissatisfied owners and are making ourselves available after this session
Impacting People Around the World
Building on our Past
Building for our Future
We Can Do Better
Are you in?