Lean Construction Case Study: UCSF Cardiovascular Building Team Implements “Value Stream Mapping”

By Akio

McGraw Hill Construction, the Lean Construction Institute, and Dassault Systèmes teamed up to produce an in-depth report on Lean Construction. Below is a case study from that report on Value Stream Mapping, implemented on the Cardiovascular Research Building project at the University of California in San Francisco.

Value Stream Mapping (VSM)


Achieving Savings Through Value Stream Mapping

Rosendin Electric was challenged by the project owner to look at ways to bring their projects even more under budget.

As a firm that prides itself on innovation and one that strives to remain on the cutting edge of technology, Rosendin tasked one of its in-house study groups to come up with ideas that would be able to save time and cost.

As a result, one of the approaches they decided to pursue was Value Stream Mapping (VSM).

Process Improvements Identified Through Value Stream Mapping

VSM, in its simplest term, sets out to observe every step of a process and identifies areas where improvements can be made to eliminate waste. The technique was first originated by Toyota and is a lean tool that employs a flow diagram documenting in high detail every step of a process.

The process they chose to study was the installation of pendant-hung fluorescent lights at the Cardiovascular Research Building at the University of California in San Francisco (UCSF).

Light fixtures installed through a more effective process

Light fixtures installed through a more effective process

As a first step, they needed communication to come from upper management to let the workers know that the VSM study was looking for improvements in the process and that it was not a judgment on anyone’s work. The communication also let the workers know that they were open to their ideas and feedback on how the process could be improved.

Joseph Leoncavallo, assistant project manager and one of the leaders of the VSM study, says, “We communicated to them that we didn’t want them to install the lights any faster than they normally would just because we were there watching them with a stopwatch and a piece of paper and writing down everything that they did. So it’s really important to have that honest conversation with the guys working in the field, first.”

The management team, as a result, got very positive feedback from the field. They were excited to be part of a process and to see what could be done going forward.

Bob Weisman, senior estimator at Rosendin states, “The field team want to be successful and to do things the best way for themselves and the company. And we’re giving them buy-in. We’re not telling them they have to do this; we’re saying: ‘what do you think?’ And that’s a big, big deal when you ask people what they think.”

Tweet: Implementing #LeanCon: Tweet: Implementing #LeanCon: “We’re not telling them
they have to do this; we’re saying ‘what do you think?’”

Each Step Taken Into Account to Identify Waste

The VSM started with setting up an observation record where a list of every activity was recorded along with notes. The group started documenting every step of the process, including activities that workers might not ordinarily consider when they are estimating time spent, including answering a question from someone, bathroom breaks and grabbing a wire nut.

The whole process from start to finish was recorded. The group repeated the process four or five times to get a good understanding of the installation process.

As a next step, the current state map was created, which involved taking the observation record and putting it down as a process map. The map essentially provided a high-level overview of every step of the process. After all the steps were mapped out, the group went back and looked at the amount of time each step took. Two levels of time were recorded: non-value-added time and value-added time.

Value-added time is considered time that is spent directly contributing to the installation of the light fixture, such as physically hanging the fixture. Non-value-added time, on the other hand, is considered something that could be done in the factory such as installing an end cap, or it could be opening a box, a necessary activity, but one that does not directly contribute to the light fixture being hung.

The team then analyzed each step in the process and identified areas where processes could be improved and waste eliminated. These areas of improvements were displayed on the map in highlighted yellow, a Lean technique known as Kaizen bursts.

The areas of improvement that were identified included nine steps in the process that could be eliminated as a result of getting the fixture prefabricated by the manufacturer.

Prefabricating Provides Key Opportunity for Savings

Next, the team incorporated the Kaizen bursts into a future state map that displayed the improved process for installing the pendant-hung fluorescent lights.

According to Leoncavallo, “We were looking at about 22 minutes of time that could be eliminated from each fixture installation, most of it due to eliminating the on-site [work on just one component of] a single fixture. Some of that time was non-value added, and some of it was value added.”

Rosendin communicated to the manufacturer their need to prefabricate the desired fixture and were not met with resistance. The manufacturer had the capability to undertake this for them and wanted to maintain Rosendin’s business, so in the end, they included the additional steps in their agreed-upon scope of work with no additional charge.

While the advantage of being a big player was certainly a factor in the manufacturer’s cooperation in this process, this is potentially an approach that any firm could benefit from. Leoncavallo says, “I think [the decision of the manufacturer
to cooperate is made on] a case-by-case basis, but I think the biggest lesson there is, if you don’t ask for something, you’ll never know.”

VSM Study Results in Project Budget Reduction

The time saved on this project as a result of prefabricating the light fixture resulted in the opportunity to reduce the project budget as the team had set out to do.

Weisman says, “I was convinced that we could at least save 15 minutes per fixture on 2,000 fixtures. So 15 minutes times 2,000 comes to 500 man hours, and our labor rate is close to $100 an hour. So I was able to lower my budget by $50,000.”

Tweet: Through Value Stream Mapping, one team was able to lower their project's budget by $50,000. @Dassault3DS #LeanCon http://ctt.ec/7cUfN+Tweet: Through Value Stream Mapping, one team
was able to lower their project’s budget by $50k

Lean Construction Case Study facts and figures

According to Weisman, the $50,000 savings against an overall project budget of $100 million was still considered significant by the owners. Especially when taking into account that overall only approximately $2,000 was spent on the VSM study, the time spent by the person conducting the study.

Value of the Process

Leoncavallo finds the value of this process exceeds the cost savings. “It gives you an opportunity to go out there, observe, really see what’s going on and eliminate waste, which is going to improve your flow and productivity.

“It deepens the knowledge of the installation process …. And the other thing is, it really improves communication between the field and management because you’re collaborating together on this solution.”


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Related Resources

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CATIA Excellence Club | Inspiring people, Energetic Atmosphere and Great Time!

By Oriane

CATIA Excellence Club - Team

People who use CATIA have joined together in user groups all around the world. These groups offer members the opportunity to become friends with other CATIA users, get questions answered, and be represented by a recognized organization discussing with Dassault Systèmes. They are for everyone from first-time users to experts – from every profession, background and age. For the first time, we decided to bring together in the same place leaders of these user groups. We organized a dedicated and very special event for them, the CATIA Excellence Club, which took place in Paris from July 17 to July 18, 2014.

CATIA Excellence Club is a two days event where CATIA professionals, leaders and enthusiasts come together to share ideas, meet peers, form teams, understand and overcome challenges user groups face every day.

CATIA Excellence Club aims to help founders prepare for upcoming challenges they might face and support them in sharing fresh, new and up-to-date content with their CATIA users local community. Together with them, will find solutions to their issues or ideas they can implement easily!

From presentations to brainstorming sessions the event was composed from multiple experiences. Indeed, our user groups leaders got to have interesting discussions, listened and participated in workshops lead by CATIA experts, as well as an intimated dinning on a boat trip over the Seine in Paris.

Sounds cool isn’t it? Discover the atmosphere in the photos below:

CATIA Excellence Club - Atmosphere 1

CATIA Excellence Club - Atmosphere 3

CATIA Excellence Club - Atmosphere 2

CATIA Community Conference is our greatest opportunity to meet with the community and make their voice heard. It was a real pleasure for us to organize a memorable experience for everyone. Thank you to the user groups leaders who gave a speech and to our entire community for being so wonderfully energetic and excited!

We look forward to seeing everyone for the next one – wherever in the world it may be!

Logo-CATIA Excellence Club

Manufacturing Goes on The Cloud

By Tony

Cloud

The Cloud is Everywhere

Or at least it seems like the cloud is everywhere today. More and more you see service offerings to back-up your system data or store your files. The storage space is nice to have, but I like the cloud for the data organization aspects. Cloud storage lets you organize things like your music for example, according to many different criteria. So instead of just listing it alphabetically like I would on my hard drive, I can organize it according to the genre of music, or the year it was released. I can organize it according to whether I listen to it while I am driving or while I am working out. It also lets me grant access to it according to who may listen to it, so if it is a suitable song, I can grant access to my son or daughter so they may listen to it.  As my library of photos and music grows, as well as my family, I can add more space to the cloud to scale it to my usage.

Manufacturing on the Cloud Makes Big Data Easy to Manage

Manufacturing applications on the 3DEXPERIENCE® platform work much in the same way.  Of course the cloud offers a great repository to keep all of your manufacturing data and applications. But even better, it offers a great place to manage and access all of your project data.  Whether it is a document, a process plan, a workcell simulation, or a manufacturing resource, it can be easily accessible on the cloud from the 3DEXPERIENCE platform. 3DEXPERIENCE on the cloud makes large amounts of data manageable and makes it easily searchable by different criteria.

Manufacturing on the Cloud Offers Scalable Resources

Manufacturing on the cloud is scalable. Projects ramp up and down as do workloads. Companies have a tough time managing hardware and software requirements that are constantly in a state of flux. Once hardware is purchased, it is on the books until it’s lifecycle is over. On the cloud, software and hardware requirements are completely scalable. So as projects and workloads ramp up and down, so does the system utilization and software licensing. This means that the capital investment made for hardware and software is transferred to a scalable system. Over the years as the company grows, the value of the 3DEXPERIENCE on the cloud grows exponentially.

Manufacturing on the Cloud helps companies to be more competitive

The 3DEXPERIENCE platform on the cloud gives smaller companies many advantages. It provides scalable resources and technology at a lower cost. By hosting hardware and software on the cloud, it also allows for reduced on-site support from IT specialists, as well as reduced infrastructure. Since it lets IT offload the responsibility, your team can focus on new projects and new products. In other words, they can focus on growing your business.

There are many possibilities when manufacturing goes on the cloud. What do you think? To learn more, join in the conversation or visit our blog “60 Seconds to Experience”.



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