2018Case7Jacobs

34 L EAN C ONSTRUCTION I RELAND A NNUAL B OOK OF C ASES 2018 The Lean tools demonstrated in this example included KPIs, standardisation, and graphical representation for the visual aids and use of A3s. These Lean techniques had the combined effect of reducing waste that can often appear in a traditional engineering context, and also assisted with the system created to report critical information from the ESP team up through the Client meeting structures. The benefits of introducing these Lean tools into the ESP team has ultimately provided enhanced value to the Client by way of reduced engineering and construction contract costs, reduced waste, and efficiencies in the service provided. Each of the Lean tools described in this case study played its part in achieving these benefits. Information and metrics collected for the ESP team show there has been a continual gradual cost reduction in the engineering hours versus TIC since its formation. This trend provides a clear correlation between implementation and development of these and other Lean initiatives in providing enhanced value to the Client by way of cost reduct ions . The trend i s accompanied by a corresponding increase in performance improvement through measurement of Quality Management System (QMS) scores, demonstrating a culture of continuous improvement overall. Although the primary objective behind implementation of these Lean tools and methods was to provide cost savings and enhanced value to the Client, the reality is that this and other Lean initiatives provide much more to the organisation than purely the commercial aspects. In this example, the results of this initiative extended much further beyond the bottom line. Early agreement of the ESP team KPIs provided the basis for measuring the overall performance of the ESP team. The KPIs were directly focused and based on the Client site KPIs, and as such provided relevant and meaningful operational targets. Establishment of the relevant KPIs directly influenced the development of the other Lean tools shown in this case study, including visual aids, A3s, and standardisation. The strong focus on the KPIs also resulted in defining the ESP team meeting structures and the flow of information detailed elsewhere in the case study. The strong adherence and accountability, to use the standardised visual aids to report information at meetings, coupled with the formalising of meeting structures and defined meeting terms of reference, has resulted in a shift in the mindsets of the team towards meeting etiquette. Nowadays, it is expected that the ESP team members arrive to meetings with the information they need to report, driving ownership and accountability for performance and results. This cultural shift has also influenced the team’s attitude towards quality and compliance metrics, and the ESP team has used this to target year-on-year improvements. For example, closure of CAPAs and change controls on time is one of the metrics that has been measured since the format ion of the ESP team. Cont inuous gradual improvements have been seen for this metric, such that now it is expected that 100% of change controls are closed by the due date. This is an example of where measuring relevant KPIs can dr ive cont inuous improvement wi thin an organisation and can result in a shift in behaviour to create new norms, embedding change into the normal every day. Implementing Lean initiatives, such as this one, can be self- perpetuating. Continuous improvement is often considered as a journey that leads to further improvements and alters organisational thinking. In the case of the ESP team, continuous improvement and Lean strategies are now embedded into everyday tasks. Nowadays, Lean principles are inherent in all aspects of the ESP team, ranging from the organisational structure all the way through problem solving, idea generation, project delivery, and reporting. However, this case study has also seen backward integration of the Lean tools and methods used by the ESP team towards the home engineering office. Early identification of project- specific KPIs is now common place and Qual ity and Compliance metrics now include a performance and delivery focus. Project reporting meeting structures have been refined, with clear lines of communication established. Projects have standardised the use of regular whiteboard meetings to review daily project deliverables, recognising that whiteboard meetings promote accountability from team members to meet scheduled deliverables. Standardised visual aids have also been introduced to routine project reporting meetings, including whiteboard meetings. Furthermore, there have recently been moves to extend the implementation of these Lean tools and methodologies across other Jacobs ESP teams at other Client sites – clearly demonstrating a value beyond this particular Client project. Some key initiative outcomes include: • More than 16% decrease in engineering costs vs TIC cost from 2005 to date. • More than 24% increase in Quality Management Systems (QMS) performance scores. Figure 5. High Quality Delivery. LEAN INITIATIVE IMPROVEMENTS & IMPACT