The application of Lean in the building of Timber Frame Structures. IJM Timber Engineering Limited Mr. Peter Mc Caughey, Managing Director Mr. James Mc Nabb, Director Team BDS & Board Member IJM. deliver projects better, faster, together
Presentation Overview • Industry Background • Our Process • Getting the relationship right with all stakeholders – Get Lean right • Lean projects – “focused on the delivery and construction element” • Planning and scheduling for the delivery and building of units on time. • Ensuring a smooth build process • Ensuring full compliance with H&S and quality standards • Dealing with issues and challenges immediately • Comparing the “before” and “after” state, essentially showing the KPI improvements. • The people aspects of this process. deliver projects better, faster, together
History Industry background • • Timber frame Ireland Established 1965 as Irish Joinery Monaghan – • 90’s >1% Promoted to Timber Frame from 1965 – – Currently 25% Manufacturing to inc. external joinery – internal joinery, kitchens, stairs Increasing 35-40% • • Kitchens – Discontinued 1990 Regulations driving Thermal • Performance External Joinery – Discontinued 2001 • • Labour market driving Internal Joinery – Discontinued 2008 – • Off-site construction On-Site Erecting – 100% since 2012 – Lack of on-site skills • 1/3 of IJM Resources are On-site Now focused and Lean deliver projects better, faster, together
IJM Head Office Monaghan deliver projects better, faster, together
deliver projects better, faster, together
deliver projects better, faster, together
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Why should IJM embark on such a journey. Why Lean Thinking? What are the Aspired Benefits? € Sales Profitable Growth Resources/Costs Time deliver projects better, faster, together
Understanding our customer characteristics sets the beat for IJM. “We listen to the voice of the customer” • Solve my problem completely • Don’t waste my time • Provide exactly what I want • Deliver value where I want it • Supply value when I want it • Reduce the number of decisions I must make to solve my problems deliver projects better, faster, together
IJM Lean Management Thinking Answer the question of What do our customers want purpose and what do we need? Specify Value A continuous CI cycle Map your process & eliminate waste Continuous Map the value Improvement stream Apply the Lean Tool Box A profitable Business Make value flow at the Involve everyone train pull of your customers them how to solve their Involve & Create flow & Empower pull problems JIT & not mass production to stock deliver projects better, faster, together
Lean BPI Working Smarter Not Harder Less Less Waste Less More Value More + More deliver projects better, faster, together
Focusing On Waste Unexploited Innovation Failing to use people’s abilities Motion Transportation Excessive motion Moving from needed to do task, A to B and excess site back. meetings, collecting Excess routes reports. Stock Defects Keeping any more Rework drawings, than needed to do wrong the job. specifications, Ordering the scrap, quality, wrong materials handling damage Waiting Processing Wrong Waiting for information, materials, Wrong drawings, Drawings, designs Over-production Faulty product due to info. Producing the wrong product, rework. deliver projects better, faster, together
IJM Process Contract Review Tender Review Sales Order | Review Design Review | Engineering Review Eng. Drgs – Approval to Quotation Order Arch. Plans Walls, Floors, Manufacture Roof Fully managed Programme Structural Value Engineering Calcs. Handover Erect On-Site Manufacture Delivery Ancillary Part A, B & C Certification deliver projects better, faster, together
Voice Of The Customer - “Managed Programme” Procurement Deliveries Build Time Start/ Design Planned Planned Scheduled Engineering Freeze Procurement Production Deliveries Finish Target 4 week period deliver projects better, faster, together
The lean business initiatives Scheduling, delivery & Overhead & Engineering lean Manufacturing lean initiatives initiatives construction lean initiatives Planning Planning Planning Scheduling Engineering Productivity Accounting Transportation OTIF ERP Construction process Quality Org structure ERP Costs H&S ERP Quality H&S Focus for webinar deliver projects better, faster, together
Partnership Model In Place For Operations Excellence Suppliers IJM Team/On-site Partners Customers Was Was Was Us and them Lacked a flow of projects Price driven Lack of clarity Hard nosed negotiations Erratic planning/vision of flow Lack of full planning Playing suppliers off Blame culture Subcontractor model Confrontation Now Now Now Team models Value & service drive Planned workflow Transparent pricing Coordinated planning Transparent pricing Guaranteed supplies Solutions and team culture IJM Team approach Open book planning Partnership model “Win – Win for all” deliver projects better, faster, together
Planning & Scheduling for the Delivery & Building of Units On Time Before 2015 Future Current state No real consolidated vision - Fixed agreed plan with customers Extend to UK customers At the behest of the customers lack of Increase capacity through continuous Firm visibility on capacity in people planning improvement. hours/equipment/capability (internal & external) Providing more “off site” construction solutions e.g service areas within floors Reacting to constant change Change management process – With our strategic customers, through “Programme” agreement. education/training help them create better programs from the outset. Crippled with spreadsheets New Enterprise Resource management Full end to end integrated system. system installed (suppliers, customers, IJM resources) Capacity loading inconsistent – lack of Clarity on capacity levels at all points in Forecasting models for suppliers, but ability to plan the supply chain linked to customer demand. deliver projects better, faster, together
Ensuring Full Compliance with H&S & Quality Standards Before 2015 Current state Future New Certified ISO 2015 system in place Maintain this, continuously improve and Certified QMS – but paper based, covering all legal and optimum standards for work towards a paperless environment. H&S process was not clear enough quality. Health and safety CI in place Continue Quality was responded to but somewhat Ethos of continuous improvement embedded. “covering ones corner” Reduce cost of quality (poor quality) The company internally Audits the standards, Inflexible in nature Reduce cost of H&S by investing at source. but Quality and safety at source is the main feature. “Quality & Safety deployment” Continue and further empower employees Not enough of internal customer focus Internal customer groups established, sales, to deal with issues engineering, manufacturing and building. Ensure that Quality is maintained and Drive KPI’s and monitor / review internal Not enough of external customer focus continuous improvement is implemented. audits. Get quality down to source. Aspiring towards “near Value rising each month, Cost of Wasn’t adding value Zero”defects & incidents . Quality/H&S decreasing deliver projects better, faster, together
Ensuring full compliance with industry standards – an integrated approach. Reduce complexity Environmental Reduce costs Mgt. System Reduce H&S issues & comply with all building PEFC Chain of Reduce Custody overall COQ regulations IS440, EN14250, ISO 9001:2015 EN1090 deliver projects better, faster, together
Key Performance measures keep us focused Dealing with Feedback/ complaints Communication rated and is highly rated root cause Issues & pursued Challenges Immediately Teamwork (Culture) Issues IJM QMS, all actions are responded to managed immediately Problems are Blame culture exposed, not discouraged hidden deliver projects better, faster, together
Comparing the “Before” and “After” While Growing Rapidly As Well. Key Measureable Pre 2015 Current State Lead time (design freeze to build) 6-7 weeks 4 weeks Inventory Turn 8 14 Inventory Accuracy 95% 99.5% Within “internal budget” planned cost 89% 98% Construction compliance 100% 100% Health & Safety (incidents) -12% On time in full delivery 92% 98% Output per employee + 28% Overhead cost reduction - 29% Capacity + 200% and extra staff deliver projects better, faster, together
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