The consistent execution of quality repair, renovation, maintenance, and new construction activities on-time, and on-budget, remains elusive to most, yet is readily available to all.
The key to obtaining best value construction outcomes for all participants and stakeholders is the adoption of a program approach vs. a project approach involving robust LEAN integrated construction planning, procurement, and project delivery.
Five key items are critical to effecting significant, long-term improvement in construction (repair, renovation, maintenance, new builds) outcomes.
- Leadership
- A strategic plan
- Focus on process
- Knowledge management
- Enabling technology
LEADERSHIP
Far too often AEC and real property owner organizations focus upon managing people. This a “root cause” of multiple problems that eventually result in failure. People are hired to do a job, provide a service, etc. If properly hired, they simple need LEADERSHIP, not command and control. This isn’t simply an issue of semantics. It is a fundamental change in how organizations function internally and with each other. Leaders support and actively participate in planning, procurement, and implementation, allocate the necessary resources, and monitor and support continuously. Leadership is the act of guiding a team or individual to achieve a certain goal through direction and motivation. Leaders encourage others to take the actions they need to succeed. To be a great leader, it is necessary to learn and cultivate the skills it takes to be effective
Historically, real property owners have failed miserably at leadership.
Robust processes have existed for decades that are capable of delivering quality projects on-time and on-budget 90% of time or more, versus the industry standard of 10%-20%. These include LEAN integrated project delivery and LEAN job order contracting, among others. Their failure to gain widespread adoption lies solely with an endemic lack of real property leadership and competency at the highest levels. Much has been written as to the associated causal factors. These factors include the lack of visibility as to the importance of facilities/physical structures at the “boardroom” / highest leaderships levels, to the relative lifespan of physical structures versus the responsible parties.
Change will only occur when senior leadership, responsible for overall stewardship of the built environment, supports the implementation LEAN and integrated construction planning, procurement, and project delivery at the strategic, tactical and operational levels, throughout the organization.
The necessary competencies and capacities that each role must have must be developed and clearly defined, as well as associated written Operations Manuals / Execution Guides.
STRATEGIC PLAN
As the saying goes “it’s impossible to manage what you don’t measure”. Herein lies the need for a strategic plan and associated tactical and operational elements, complete with quantitative key performance indicators (KPIs).
Real property owners simply don’t have the right tools, processes, and information in place to efficiently manage their built physical assets. For example, fundamental baseline tools and information include…. 1. location, physical and functional condition, and usage level of ALL physical structures, 2. locally researched detailed line item cost data to enable cost visibility and transparency associated with liabilities, budgets, plans, etc. Without these two (2) baseline elements, ANY associated facilities management activity will be grossly inefficient.
A strategic plan is required in order to establish a roadmap that guides an organization over time to varies stages of improvement. During the process is important to define baselines, and the associated history of improvement. The strategic, tactical, an operational plans must be deliver, a concise and motivating vision as well as detailed workflows that define and support goals and objectives.
FOCUS ON PROCESS
Robust integrated project delivery solution are program, process, and workflow oriented. While each project and/or work order may be different all follow the same fundamental collaborative and transparent processes.
If you are new to LEAN and a program orientation versus a project mentality, you can likely benefit by beginning with pilot program and phasing your LEAN program into place. In this way, you can better document and communicate your lessons learned and grow your program appropriately for your organization. You can then clearly demonstrate your learning and justify continued and increased investment of resources.
A program structure relies on multiple tools and methodologies to put its principles and philosophy into practice. Proven implementation tools and services are readily available. They should not be confused however with LEAN philosophies or siloed LEAN elements. Examples of the latter include, include, Value Stream Mapping, 5S Methodology, Takt Time Planning, Last Planner System, Visual Management, among others (all trademarks and rights remain with their respective owners). Learning about these philosophies and siloed elements provides basic knowledge in certain areas, but they do not provide robust implementation platforms for integrating construction planning, procurement, and project delivery.
KNOWLEDGE MANAGEMENT AND TECHNOLOGY
Current, accessible, an actionable information clearly is need to connect construction to best value. The AEC industry and the real property owners it rarely establish a common data environment. The net result has been poorly developed work scopes, rampant errors, omissions, and change orders as well as the lack of any verifiable financial visibility or transparency. One of the most important common data elements is a locally research unit price book UPB). The use off a locally researched UPB is critical for developing accurate work scopes and validating proposals from contractors and subcontractors as well as creating sound budgets.
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