Lean Experience and Operational Excelence Graña y Montero

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(1)

Lean Experience

and Operational Excelence

Graña y Montero

(2)

WHO WE ARE:

Graña y Montero

Engineering and Construction Group with the biggest

Company Value in Latin America (79 years of experience)

Projects for Over 50 Million Men Hours per year

About 2,700 employees and 16,000 workers in construction

Projects

Mining and Energy

Industrial and Infrastructure

Buildings

Lean

(3)

Mejora de

Mejora de

Procesos 21

Procesos 21

(MP 21)

(MP 21)

Eficiencia

Eficiencia

Y seguimos

Y seguimos

Construimos proyectos

Construimos proyectos

en diversos sectores:

en diversos sectores:

miner

mineríía, industria, gas y a, industria, gas y petr

petróóleo, leo, infraestructura,

infraestructura,

energ

energíía, edificacionesa, edificaciones

Booz | Allen | Hamilton

Gra

(4)

Gra

(5)

Operational Excelence

We should expect these results if we state we work with

Operational Excelence

:

Perceived Quality expectations

– On time

– Safety

– Smooth Ongoing

– Efficiency

– Awareness

– Satisfied Clients

– Adequate Profit

(6)

Project Management | Production and

Services | Operations

Project Managemet| Services Project Managemet| Services Predictions Reports Production Management| Operations Production Management| Operations Production Planning Execution Continuous Improvement Coordination Macro-Strategies

(7)

Production and Operations managed

professionally is fundamental in order

to accomplish Operational Excelence

(and business results)

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P E

lan

xecute

C

ontrol

Reactive System

(10)

• Remote locations, difficult weather conditions, social factors, etc.

• Dependency on third-party engineering designs and specialized materials

• Speed required by projects

PROCESS X

PREDECESSOR 1 PREDECESSOR 2 PREDECESSOR 3 PREDECESSOR 4 PREDECESSOR N PREDECESSOR Reliability = 95%

Process X Reliability:

N=5, 77%

N=10, 60%

N=20, 36%

Process X Reliability: N=2, 0.95*0.95=0.90

Dependencies

Understanding Production

Plans are not updated rapidly

Plans are not updated

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Production management based on

traditional Project Management

methodologies origins chaos,

inefficiency and time risk

(12)
(13)

P

E

C

Assure: What you do = What you planned to do Continuous Flows comes from a Reliable Plan

Middle Step

(14)

1st Step

1st Step

: Continuous Flow

: Continuous Flow

PROCESO 1

PROCESO 1 PROCESO 2PROCESO 2 PROCESO 3PROCESO 3 PROCESO 4PROCESO 4 PROCESO 5PROCESO 5

FLOW

FLOW

(15)

In operations with higher disruption

probabilities, continuous flow will get

us closer towards Operational

Excelence

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Continuous Flow

1

°

Analyse the obvious

2

°

Set special strategies to fight external factors

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Analyse the obvious

Consiste en realizar un buen

análisis

de:

Todo lo que se va hacer y como se va hacer

Los recursos que se van a necesitar

Los tiempos de ejecución

Las

estrategias

para cumplir los objetivos del proyecto

Outcomes

: Master Schedule

Simple to read, understand,

update and review

It

´

s more important to

plan than having a plan

(18)

FIRST OF ALL:

CONFRONT VARIABILITY

IN HEAVY CIVIL | INDUSTRIAL CONSTRUCTION

(19)

Gas Distribution at Lima

Ruta inicial a través de la ciudad

Lima City

Ruta Final

(20)

To anticipate, To “make ready”

Línea de Distribución de Gas Natural

(21)

CIVIL WORKS - PAGORENI "B" - MALVINAS CONSTRUCCION DE PAD LOOKAHEAD Nº 06

DESCRIPCION DE ACTIVIDAD FECHA DE AGOSTO

INICIO SEMANA 0 SEMANA 1 SEMANA 2 SEMANA 3

1 AREA 1

1 Excavación de Top Soil 08-Jul 1 Excavación de Unsuitable 14-Jul 1 Relleno con Material Granular 07-Ago 1 Colocación de Soil Liner 14-Ago 2 Colocación de Geomembrana 21-Ago

Current Week Horizon

Last Week Horizon

New Activity Starts

TODAY

High probabilities that this activity will start on time

=SHIELDING 2 weeks to

remove these constraints

Is everything ready to start this task?

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PPC Lookahead Constraint Analysis Weekly Work Plan Support Lookahead Support Weekly Plan Support PPC PRODUCTION SUPPORT TEAMS

WEEKLY PRODUCTION MEETING WEEKLY PROJECT MEETING

IN-PROCESS PLANNING ROUTINE

We designed a customized approach of working with LPS

TM

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2nd Step:

2nd Step:

Efficient Flow

Efficient Flow

PROCESO 1

PROCESO 1 PROCESO 2PROCESO 2 PROCESO 3PROCESO 3 PROCESO 4PROCESO 4 PROCESO 5PROCESO 5

FLOW

FLOW

1st Step

1st Step

: Continuous Flow

: Continuous Flow

(24)

In operations with higher probability

of continuous flow, balanced workload

should be the focus

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Continuous Improvement Cycle:

Identify Bottleneck

Increase capacity of the bottleneck

Reduce capacity of the other stations

And start

all over

again

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3rd Step:

3rd Step:

Process Efficiency

Process Efficiency

PROCESO 1

PROCESO 1 PROCESO 2PROCESO 2

FLOW

FLOW

PROCESO 3

PROCESO 3 PROCESO 4PROCESO 4 PROCESO 5PROCESO 5

2nd Step:

2nd Step:

Efficient Flow

Efficient Flow

1st Step

1st Step

: Continuous Flow

: Continuous Flow

PROCESO 1

PROCESO 1 PROCESO 2PROCESO 2 PROCESO 3PROCESO 3 PROCESO 4PROCESO 4 PROCESO 5PROCESO 5

(30)

In operations with continuous flow and

balanced worload, focus should be in

process efficiency

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TÉCNICAS DE MUESTREO

-CARTA BALANCE

(33)

To accomplish Operational Excelence

we must assure:

1.Continuous Flow

2.Efficient Flow

3.Process Efficiency

In that order

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Productivity Improvement

Social Housing Formwork: 0.42 MH/M2

(37)

Productivity Improvement

Before Now

3.90 MH/ML 1.57 MH/ML

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Projects under

better control – Less Stress

99% on time

Project delivery for 15 years.

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Effective training systems allow young

Engineers asumming more responsibilities

(40)

Steps

– Received initial support from

Consultants

– Began to create our own

Knowledge

Evolution

– Buildings Heavy Civil Industrial Construction Projects

We designed our

Project Management System

based on Production Management and LPSTM

4.5 years ago, we created a small Area to implement, step by step, Project by Project, the new way of doing things

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HOW WE ARE DOING IT

(42)

Lean helped us to get to our current understanding:

Focus on People (inside and outside of the organization)

Create and share Knowledge, constant learning

Efficiency will come as a

consequence

, not as an objective

TIME UNTIL NOW

FUTURE

Integration of Clients and SC

(43)

Conclusions

What should we focus on?

Production as our main management priority

• Offer better promises and deliver them

• Efficiency should be the competitive advantage

Does Lean Construction help to better manage production and

achieve efficiency?

Absolutely

Is it easy to put into practice Lean Construction techniques?

No, a lot of effort is required

Implementation demands time

(44)

Is it worth the effort?

Absolutely

. Improvement in economic results and reliability on

delivering Projects on time

WILL HAPPEN

, if really implemented

Any tips for implementation?

Design with detail how Lean concepts can be embraced within

your organization.

THINK HOW

TO MAKE IT HAPPEN, AND WORK PATIENTLY

Why do this?

To increase competitive advantage

Because Engineering should be in favor of human kind

(45)

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