2018Case16OfficeofPublicWorks

60 L EAN C ONSTRUCTION I RELAND A NNUAL B OOK OF C ASES 2018 Case 16 – Office of Public Works Some of the most recogni sable properties in the country are held by the Office of Public Works (OPW). OPW has one of the largest and most diverse property portfolios, ranging from landmark bui ldings such as Dublin Castle to Garda stations and Government offices. A focus of OPW i s to get value for money whi le providing accommodation that meets the operational needs of Government. OPW manage more than 2,000 bui ldings spread across 1,700 properties throughout the country. C O M P A N Y W E B S I T E OVERVIEW OF THE LEAN INITIATIVE This case study looks at the Office of Publ ic Works Li f t Replacement Programme which involved the installation of 26 passenger lifts per year across the Republic of Ireland, with a budget for the works of € 1.85M per annum. LEAN INITIATIVE UNDERTAKEN – LEAN THINKING, TOOLS, TECHNIQUES www.opw.ie/en/estateportfoliomanagement/ AUTHOR Aidan McGovern OPW introduced a streamlined procurement system to improve delivery called a “Dynamic Purchasing System (DPS)” which is like a framework agreement except that during its life other economic operators (suppliers) may, if they meet the published criteria, join the system. Using a DPS provides a simple and straightforward form of access to contracts for suppliers. When applied appropriately, it is a cost effective method that can limit the need for complex tender processes and benefit both supplier and tendering organisation. The DPS is a two-stage process. First, in the initial set-up stage, all suppliers who meet the selection criteria, and who are not excluded under the grounds for exclusion, are admitted to the DPS. There can be no limit on the number of suppliers that may join a DPS. Unlike framework agreements used previously by OPW, suppliers can also apply to join the DPS at any point during its lifetime. Individual contracts are awarded during the second stage. The second stage is streaml ined and al l of the paperwork has been previously approved. The approach lends itself well to self-limiting marketplaces where new activity is to be encouraged. This procurement system follows the Lean methodology of eliminating wastes and repetition from the processes. OPW also introduced Integrated Project Delivery (IPD) which is a project delivery method that is distinguished by early collaboration between cross-functional teams, including design, engineering, and construction. This system of project delivery encourages a culture of collaboration among the owners, designers, and construction delivery teams. The owners and designers are encouraged to l isten to the construction delivery experts and decisions are arrived at by consensus rather than the traditional top-down method. Responsibilities can be shared between the entire team which means that risk and rewards are also shared. By putting together shared goals and working as a team, schedule durations can be reduced by removing handovers from one part of a team to the next. IPD aims to have a transparent process of project delivery with as many barriers and wastes removed. It is important that every member of the project construction team speaks up and has the opportunity to contribute to the shared objective. Design Stage Instead of appointing individual project managers and design teams to individual projects, OPW appointed a team to complete a programme of works over 3 years. This enabled BACKGROUND TO THE LEAN INITIATIVE The OPW has 650 passenger lifts across 10.7 million sq.ft . of its property portfolio. The average working life of each lift is 25 years when maintained correctly. OPW must replace a minimum of 26 lifts per annum to maintain its portfolio; however, the current system of lift replacement only delivered 3-4 lift replacements each year. Previously each lift was tendered separately using consultants or in-house engineers. A lift replacement required a tendering system for the consultant engineer followed by a separate competition to appoint a contractor for the construction works. Each project received an individual project manager, engineering and procurement team. Each project was managed from head of f ice on an individual basis using the traditional critical path method (CPM) of scheduling. A new system of lift replacement was needed based on Lean thinking and practice. Figure 1. OPW Lift. COMPANY OVERVIEW