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?