lci leadership meeting - faster |...

deliver projects better, faster, together

WELCOMEto the

Lean Construction Ireland (LCi)

Regional Collaborative Engagement for the Midlands Region

in association with the Construction Industry Federation

Tuesday 24th of April 2018


AgendaTIME DESCRIPTION

18:30 – 18:55 Registration – Refreshments – Networking

19:00 – 19:10 Opening & Welcome - Gillian Murtagh- Seán Downey

19:10 – 19:15 Overview of Lean Construction Ireland (LCi) - Richard Fitzpatrick

19:15 – 19:40 What Lean is – Why Lean in construction – - Richard CaseyWhy Lean Construction is important – The role of LCi - Perry Haughton

19:40 – 19:45 Why Lean Construction is Important to FDI Clients & Supply Chain - Senan O Riain

19:45 – 19:55 Lean Construction Case Demonstrations - Andy Brophy

19:55 – 20:05 Where You Can Get Help - Michael Devaney- Orla Martin- Jolene Hall

20:05 – 20:10 Lean Business Ireland & Regional Lean Networks - Darrin Taylor

20:10 – 20:25 Q & A

20:25 – 20:30 Closing - Dominic Doheny

20:30 Networking


Opening Address

Gillian Murtagh (Marketing Director at Shay Murtagh Precast Ltd.)

Seán Downey (Construction Industry Federation)


Welcome


Overview of Lean Construction Ireland (LCi)

Richard Fitzpatrick (LCi Chairperson)Director for Programme Management & Project Controls

National Paediatric Hospital Development Board


WHO WE ARE…Lean Construction Ireland is an all-island, independent, and not-for-profit association whose members passionately believe that Lean Thinking & Practices can enable and sustain enhanced effectiveness, efficiency, productivity, and profitability for the Irish Construction Sector, Clients, and Supply Chain.

WHAT WE DO…Lean Construction Ireland leads a community of learning and practice that promotes the application of Lean Thinking & Practices throughout the Irish Architecture, Engineering, Construction (AEC) sector so as to realise value-add for all stakeholders in the value chain. It supports the open exchange of knowledge, information, and experiences around good practices and case studies. It also supports ongoing research into Lean practices nationally and globally, their application to AEC, and their sharing with the wider Lean Construction Ireland Community. It is aligned to LCI USA.

CORE VALUES…Collaboration. Leadership. Teamwork. Commitment. Knowledge. Innovation. Integrity.

VISION…Deliver Projects Better, Faster, Together

STAKEHOLDERS… Public & Private Capital Project Clients & Owners. AEC Supply Chain. AEC Representative Bodies & Agencies. AEC Professional Bodies. AEC Academics. Lean Construction Trainers & Consultants. Lean Business Ireland. Ireland Inc.

OBJECTIVES…To achieve this Vision Lean Construction Ireland will: Promote the application of Lean Thinking & Practices in the Irish AEC sector. Develop a national network of members committed to the application of Lean

Thinking & Practices. Challenge the status quo of current project thinking and delivery methods. Advance amongst all stakeholders the business case for Lean Construction

knowledge and skills.

About LCi


LCi Communications & Media

WWW.LEANCONSTRUCTIONIRELAND.IE

WWW.LINKEDIN.COM/GROUPS/4332330

WWW.FACEBOOK.COM/LEANCONSTRUCTIONIRELAND

TWITTER.COM/LCI_IRELAND

[email protected]


• What Lean is…• Why Lean in construction… • Why Lean Construction is important…• The role of the LCI…

Richard Casey (LCi Board Director & DPS Group)

Perry Haughton (LCi Board Director & BAM)


Lean is a business strategy based on satisfying the customer bydelivering quality products and services that are just what thecustomer needs; when and where the customer needs them; in theamount required; at the right price; whilst using the minimum ofmaterials, equipment, space, labour, and time.

What Lean is


Find and Reduce all sources of waste Build Continuous improvement into your business strategy

What Lean is


Construction Productivity


Construction Projects:

• Take 20% longer to finish than scheduled

• Are up to 80% over budget

• Provide an average of 4.4% profit margin for contractors (bottom quartile)

Schedule & Cost Overruns


30% of construction is Rework

40-60% of Labour Time is inefficient

3-6% of costs are absorbed by Accidents

10% of Material is wasted

- Egan Report (1998)

Waste in Construction

Labour Productivity Non-Value-Add (NVA)


Reproduced from CII RT252, Construction Productivity Research Program, 2013 )

(% o

f 3

0 m

ins

ded

icat

ed t

o D

irec

t W

ork

)

08:00 – 16:30 working day

81% of time , not doing Direct Work• Personal Time• Waiting Time• Walking Time• Prepare/planning time• Getting material &

equipment• Repairs/Rework

Waste in Construction


Potential for up to 60% improvement in project performance

Opportunities & Drivers for Improvement


1. Competitiveness 2. Better business yields3. Higher Quality Construction 4. Greater Customer Satisfaction5. Greater Productivity6. Improved Safety

Source: McGraw Hill Construction Smart Market Report – Lean Construction, Leveraging Collaboration and Advanced Practices to Increase Project Efficiency)

Business Benefits


1. Road projects 2. Transport projects3. Rural Renewal 4. Housing5. Universities6. Culture & Heritage7. Infrastructure for Climate Change 8. Hospitals

National Delivery


Competition is intensifying as an increasing number of countries focus on FDI to provide an additional source of economic activity.

A continued focus on investment in skills, property and infrastructure, as well as competitiveness, is required if Ireland is to replicate its past successes in FDI into the future.

- Winning: Foreign Direct Investment 2015-2019

International Competition


Sean Downey

BIM together with the use of Lean Construction principles of project management can help to deliver what the Roadmap requires.

Sean DowneySecretary of the CIF Construction 4.0 Committee,

Chair of the CIF Continuous Improvement, Lean, BIM Sub-Group.

CIF – “Construction 4.0”


ChallengeThe

Status Quo

Build AwarenessOf ways to

improve construction

ConnectLike minded people

& Organisations

HelpConstruction companies and

industry to improve

www.leanconstructionireland.ie


Lean in Contracts2017 / 2018 2018 / 2019 2019 / 2020

CONTRACT MODEL:Evaluate existing collaborative contracts for use.Engage with external legal to establish best Lean enabling Contract Models for Irish Construction Market.

CONTRACT MODEL:Seek input from CIF, RIAI, IEI etc to Lean Contract requirements and wordings.Identify and promote early adopter projects as pilots.

CONTRACT MODEL:Point projects in the direction of best practicecontracts available for incorporating Lean in Contracts, and seeing those being adopted by clients in public and private sectors.

MEASURE:Look to case study known collaborative projects. Evaluate Lean Scorecards available for best practice to facilitate self assessment.Initiate KPI development suitable for Ireland construction.

MEASURE:Assess case-study outcomes for client, contractor, sub-contractors.Determine measures of performance and benchmarks in Lean in Contracts.

MEASURE:Lean in Contracts used as a measure of performance and reward.

SET GOALS:Define desired outcomes for client, engineer, contractors, sub-contractors. Contract terms that define project success rather than look at rare past failures.

SET GOALS:Target to have clients and supply chain expecting Lean in Contracts and being used as a differentiator within the procurement process.

SET GOALS:Leaps of Faith for Client (sharing control) and Contractor (sharing risk) are much less daunting.Set continuous improvement Lean in Contracts goals.


Why Lean Construction is important to FDI Clients & Supply Chains

Senan O Riain (IDA Ireland)


Introductions to Peer CompaniesAccess to Government SystemIntroductions to Industry AssociationsCollaboration With 3rd Level Institutions

Design and Hosting of tailored Fact-Finding Site VisitsInformation Gathering, Analysis and EvaluationRFIs (Requests for Information)

IDA Funding Programmes & IncentivesPublic Relations & Media SupportEmployment Permits & VisasProperty Solutions

Awareness(Consideration)

Engagement(Short-listing)

Investor Evaluation(Comparing)

Decision(Validating) Implementation After-Care

IDA Ireland – Who We Are & What We Do


IDA Ireland – Who We Are & What We Do


The Midlands – A Global Hub


Higher economic growth projections, trade volumes and commodity prices would normally point to a potential increase in global FDI.

BUT!• Elevated geopolitical risks. • Policy uncertainty.• US Tax Reforms.

RESULTING IN!

• Global flows of foreign direct investment (FDI) fell by 16% in 2017.

• A strong decrease in flows was reported in Europe (-27%) as well as in North America (-33%).

45

50

58

60

60

66

68

85

144

311

India

France

Singapore

Brazil

Australia

Ireland

Netherlands

Hong Kong

China

US

Estimated FDI Flows: Top 10 Host Economies 2017

Ireland, Punching Above Its Weight

The Importance of FDI for Ireland


Ensuring Ireland’s continued attractiveness for FDI will require a stable macroeconomic environment and support for the consistent pro-enterprise policies behind Ireland’s success to date.

These include:• A competitive corporate tax regime • High-quality education and skills development • Innovation • Openness to trade • Development of a safe, stable and attractive living and

working environment • Property availability • Competitiveness

Why Ireland for MNCs?

• High Quality • Low Cost • Energy Efficient• Connectivity• Branding• Flexible

What Ireland Needs

The National Focus


Lean Construction Case Demonstrations

Andy BrophyLean 2 Innovative Thinking

(Commended Lean Service Provider)


Tommy had an idea to

experiment and see could he

reduce the cost of the pallets

used. He reduced the number of

boards on a pallet from eight to

seven boards, while still

maintaining strength

specification. His idea will save

about €14,000 every year!

30% of manufacturing

labour cost is incurred

searching for, walking to, or

retrieval of items.


Over 1,000 implemented ideas by

frontline staff have been realised via the

company’s local visual idea boards.


Lost Time Accidents reduced by 30%. Machine breakdown time reduced by 20%

annually. Material cost reductions across top-5

expenditures reduced by 5%. Process improvements facilitated increase in

productivity by 12.5%. Over 900 quick-win ideas implemented to

date. Steel waste reduced by 3% annually. Snag items reduced by 30%.


• Reduction in manufacturing end to end lead time from 33 days to 7 days

• Mass Employee Engagement - 4000 implemented frontline employee ideas over a 4-year period in a 250-employee company

• €900K realised cost savings in 2016 using Lean Supply Chain practices

• Improved productivity by 25% in a peat farming packaging facility

• 50% productivity improvement realised through the implementation of Cellular Manufacturing

• €250K yearly savings realised through a one week Kaizen Blitz event

• Reduction in painted parts cosmetic damage by 50% through A3 systematic problem solving

• 20% of components parts cost designed out using Value Engineering Analysis

Snapshot of Achievements in Midland Regional Firms


Sample of Lean Management in Midland Firms


Where you can get help - Enterprise Ireland

Michael Devaney


• 1064 Projects supported to date (2010 – 2017):

– Start Average Savings +€55k

– Plus Average Savings +€145k

– Transform Significant

• Quality up 30%

• Delivery adherence up 43%

• Sales up 40%

• Productivity up 20% (Sales per employee up €37k)

• Overall Programme Funding = €62.4m (€17.8m - State, €44.6m - Companies)

• Total productivity gains = €662 million

• Employment up an average of 11%

Lean Works!


LeanStart

• introduce lean principles / agile processes

• complete a specific cost reduction project

• includes Environmental Best Practice Initiative

1st Steps to Green Competitiveness

• 7 days consultancy, extending over typically 8 -12 weeks

LeanPlus

• medium-scale business process improvement project

• sustained use of Lean & similar business process improvement methods

• significant measurable gains in capabilities & competitiveness

• typically be not less than 6 months duration

LeanTransform

• extensive, holistic company transformation programme

• embed the culture & competences necessary for sustainable competitiveness gains across the business and its supply chain

• assignments will typically extend for at least 1 year

Key Features of the Lean Business Offer


NATIONAL LEAN BUSINESS OFFERENTERPRISE IRELAND, IDA, UDARAS NA GAELTACHTA

Eligible cost elements Clientcosts

EI grant

Lean-Start ‘Lean’ consultancyfees at €900 per day

€6,300 €3,150

Lean-Plus ‘Lean’ (& specialist)training fees

Cost of company‘lean project champion’.subject to EI assessment.

Up to €100k

Up to50%

LeanTransform

Training fees

training costs

company staff costs and other costs as may be approved by EI

Typicallyover €100K

As set by EI.< 70%


ENTERPRISE IRELAND LEAN RESOURCES

www.leanbusinessireland.ie

www.enterprise-ireland.com/en/Productivity/


PUBLICATION

S


LEAN CASE

STUDIES


Mike Devaney,Senior Lean ExecutiveCompetitiveness DepartmentEnterprise IrelandMervue Business ParkGalwayIreland

M. 353 87 2389928T. 353 91735926E. [email protected]. www.enterprise-Ireland.com

Key Enterprise Ireland Point of Contact

mailto:[email protected]

http://www.enterprise-ireland.com/


Where you can get help – LEOs

Orla MartinHead of Enterprise @ LEO Offaly


LEO Staff meet with business owners, listen and discuss options

– Brexit ScoreCard

– Mentoring

– Technical Assistance for Micro-Exporters

– Enterprise Europe Network

– Co-Innovate Programme

– Microfinance Loan Fund

– Brexit Loan Fund

– and LEAN for Micro This adjustment in policy is part of the States response to the Brexit

issue and will be reviewed for impact and effectiveness

LEOs – Key Business Support for Lean


• Model 1: (Group, One to many)

LEO office selects Lean Service Provider (Tender)

Group workshop – 2 days

5 half days individual company mentoring

• Model 2: (One to One)

– Company selects Lean Service Provider

– 5.5 days mentoring / training

This adjustment in policy is part of the State’s response to the

Brexit issue and will be reviewed for impact and effectiveness.

LEOs – Lean for Micro Programme Model


Orla Martin [email protected]

Geraldine Beirne [email protected]

Catherine Kane [email protected]

Michael Nevin [email protected]

Tracey Tallon [email protected]

Seamus Doran [email protected]

Jacqui McNabb [email protected]

LEOs - Midland Regional Contacts


Where you can get help - ETBs

Jolene HallLOETB Training Officer

Contact: 05786 71310/085 2539167Email: [email protected]


LOETB who we are…

LOETB are the statutory education authority in Laois and Offaly managing and operating a range of second level schools, further education and training centres.

Adult Literacy

Youthreach

STP

Skills for Work

BTEI

CTC

LTI

VTOS

PLC

SST

TraineeshipApprenticeship

Work Force Development

Laois and Offaly Enterprise and Training Board


LOETB what we do…

Course Outline:

Morning Session• Introduction to Lean Construction and the Business Case for Change• Lean Project Delivery Vs Traditional Project Management • Operational Waste and Exercise • Core Lean Diagnostic Techniques and Exercises• Mapping: Value Stream, Process and Exercise• Lean Supply Chain Principles• Lean Transformation Roadmap – How do we start – practical steps• Lean Construction – Key Performance Measures – Know How We’re Doing• Last Planner® System

Afternoon SessionCore Lean Methods and Exercises • 5S & Simulation Game• Visual Management• SMED• Error Proofing• Standard Work• Employee Idea Capture System• Root Cause Analysis Overview

Introduction to Lean Construction Workshop Friday, 4th of May 2018

National Construction Training Centre, Mount Lucas

Laois and Offaly Enterprise and Training Board


• Lean Business Ireland• Regional Lean Networks

Darrin Taylor Principal Lead @ WIT Academy of Lean Enterprise Excellence

Lean Construction Ireland Board AdvisorLean Business Ireland Leadership Committee


Lean Business Ireland

Enterprise Excellence Ireland Conference

Wednesday 23rd May 2018, Croke Park, Dublin

http://eeireland.com/

www.leanbusinessireland.ie/

Lean Business Ireland Summary Report

News (2018) 165 Published on LBI

Case Studies (2018)

5 Cases

4 Lean Case Studies

1 Green Case Study

(total to date 108)

Training/Education Directory 259 Training Courses from 47 Providers

Service Providers Directory 196 Providers: Lean; Green; Specialists

Environmental Consultants Directory 169 Consultants

Lean Business Ireland


• South East: Est. 2002 – Site Visits; Seminars; Annual Conference (3rd May) – Led by Industry – Coordinated by WIT’s Academy of Lean Enterprise Excellence.

• Mid West: Est. 2016 – Site visits; Annual Conference (Nov.) – Led by Industry –Coordinated by Shannon Chamber of Commerce.

• North East: Est. 2018 (launched 8th Feb) – Site visits (McAree Eng. April 12th) – Led by Industry – Coordinated by DundalkIT.

• West North West: Est. 2018 (launched 24th April) – Led by Industry – Coordinated by TBC.

• South West: Est. 2018 (launching June) – Led by Industry – Coordinated by TBC.

• Midlands…

Regional Lean Networks


Overview• Established April 2018• Led by Industry• All Regional Stakeholders involved• Interim Chair – Stuart Nelson (Jigsaw Consulting)• Formal Launch Date to be confirmed

Higher Education Institutions• Athlone Institute of Technology

– Joe Lawless [email protected]– Alan Duffy [email protected]

Midlands Regional Lean Network




State Agency SupportEnterprise Ireland & IDA Ireland

Local Agency SupportLEOs

Education, Training, DevelopmentHigher Education InstitutionsEducation and Training BoardsSkillnetsRegional Skills Forum

National LeadershipLean Business IrelandLean Construction IrelandConstruction Industry FederationBIM Ireland & CiTA

Subject Matter ExpertiseLean Service ProvidersSpecialist Trainers & Consultants

YOUR ORGANISATION

Regional Lean NetworkMulti-Sectoral, Clients, Supply Chain, Suppliers Knowledge Exchange, Benchmarking, Good Practices

Summary


Questions & Answers

Q&A


Closing Address

Dominic Doheny(President at Construction Industry Federation)

lci leadership meeting - faster |...

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