‘Lean’ methodologies in facilities Approaches, effects, problems and compliance. Dave Gaster December

Introduction to ‘Systemic’ Working ‘Lean’ is one of many ways of working which can also be called or include: – Systems Thinking …. Initially incorrect (I’ll explain) – Lean Systems Thinking (LST) – Six Sigma – Kaizen (Blitz) – Continuous Improvement – ((From)TQM, SQC, SPC, TPS, BPR, CSH, CHAT, ….) They all have their uses. Culture, enterprise and need will determine which is best for you. 3

Applicability to facilities Lean Systems Thinking (LST) applies to: – Initial design (+ Strategy??) – Build – Maintenance (Planned and responsive) – Upgrades and Conversions (i.e. mobile working?) – Usage (post, meeting rooms, cleaning ….) That is, to every aspect of the FM world 5% of a building cost is its build cost… 5

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Reflections to pressures The top four challenges – More from less: Contracted Maintenance – Defining KPI’s for contractor sign-up (Partnering?) – Energy efficiency – Construction methods and use of space LST can lead to less: Effort, needed space, defects and spend 6

Maintenance LST will mainly improve efficiency.... Response Maintenance: – 100% jobs on time – Doing the right work, enabling decisions + or – – Avoiding major failures, zero defects, zero claims – Learning how to create & use great information Voids and refurbs – Key to key in 12 days (social housing) – 100% tenant acceptance – Genuine partnership development 7

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Some tools for an easy start Cause and effect charts (+ 5 whys) Mind-maps Flow charts Pareto analysis Run charts Control charts 9

Cause and Effect (Also Ishikawa and Fish-bone diagrams) Use to collate lots of ideas and sub-section Ideal move after ‘brainstorming’ Great for showing different teams (sections) involvement in a large project Ideal for ‘zooming-in’ on certain issues (along with the 5 whys) 10

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Mind Maps Simple method to get lots of ideas out of your head, or from a group of people Can use to share and develop principals Can evolve from simple pencil form to coloured detailed format Can use to provide context Can use to show cost benefits, enviro-impact, HR involvement, any thematic 13

First thoughts Mind - map 14

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Flow chart (red is wasted effort) 18

Run chart

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Principles of design Design against value demand (E2E) Customer defines quality Only do the value work Minimise number of handoffs Put information in the hands of front line staff Decisions about the work should be made by people who do the work Do the work perfectly (leave it clean) Challenge “dirt” and “failure demand” Pull ICT to further improve flow only once the work is clean 17 20

Applying LST to Facilities Operational work (Using existing facilities) – Ten biggest routine issues? – ?????????? (Scribe on flip-chart) – Apply ‘Pareto’, which is most frequent? – Apply ‘five whys’ to most frequent. (Example) – Brainstorm reasons why that happens – Allocate these to a Cause and Effect Chart. – Which are wholly in ‘your gift’ to resolve – Start process of re-design on most frequent… – Resolve high impact issues, use capacity and energy to move to next highest issues, plus ‘low hanging fruit. 24

Visualising Transformation Built upon LST, adds innovation and SST Strong focus on host culture methods and governance Addresses ‘Effectiveness’ and ‘Efficiency’ Uses Check, Plan, Appraise, Do cycle (CPAD) Creates great information from erratic data Seeks stunning and compelling information for decision makers. Works with workers and bosses Deep customer perspective Deep business perspective 25

Outcomes Reduced defects by a factor of ten Reduced customer complaints by 60% in 5 months 40% less cost of external meeting rooms Increased post-room capacity by 30% Reduced insurance claims processing costs by 67% and times from 90 days to 2.65 days. Reduced CO 2 by 18% (first year) About £40M saved revenues in eight years Case Studies at: and