Creating Integrated Teams in Highways Agency: Lean Strategies & Success Stories

1. LIPs Conference 2012How the Highways Agency, England is creating the environment for integrated teams Sue Housley B Eng C Eng MICE DMS Lean Technical Manager – Highways Agency

2. Coverage of presentation • Who are the Highways Agency (HA), England • Ways to create integrated teams • Early Contractor Involvement • Category Management Framework • Lean deployment in supply chain • HALMAT ( HA Lean Maturity Assessment Toolkit ) • Examples • Lessons learnt

3. Executive Agency of Department for Transport. 3600 staff across 8 offices, 8 traffic control centres and 29 outstations across England. Operate, maintain and improve 7000 km Strategic Motorway and Trunk Road Network in England.(£100bn asset) Network carries 4 million vehs/day Accounts for 3% of England’s road network but carries 1/3 of all traffic & 2/3rds LGVs

4. Where the money goes • The Highways Agency is spending £2bn per annum operating, maintaining, renewing and enhancing the Strategic Road Network • 90% spend is with suppliers. • Of that 80% spend is with Tiers 2 & 3 suppliers (sub contract) • Important to achieve “better for less” and reduce waste.

5. How to create integrated teams? • Contractually : • Early Contractor Involvement (ECI) Category • Management Framework Contractual requirement to show improvement /efficiency • Back to back clauses – Target cost and risk allocation • Culturally : • use of Lean tools techniques and • creating cultural change towards • efficiency and collaboration

6. HA has introducedLean in to supply chain

7. The relationship between Value and Lean Lean Doing the job right Value Doing the right job

8. Lean Deployment Strategy

9. Lean Deployment Strategy People Philosophy Developing Capability Leadership & Engagement Lean Deployment Improvement Engine Problem Solving Sustaining Lean Process

10. Examples of Lean interventions

11. LVM on M6 jn 23

12. LVM Maintenance depot MAC4

13. Delivering Value by Collaboration & Lean Deployment M53 Bidston Moss Viaduct Strengthening Scheme

14. Construction Challenges • Logistics • Safety • Confined Spaces • Working at Height • Rail Interface • Climate Control • Live traffic

15. Project Successes… Safety: No reportable accidents, AFR = 0 1,290,000 Man hrs worked, 38 Months 3 RoSPA Gold awards, Safety MST 10, Highest SHE audit scores in HA Cost: Scheme £1.6m under budget , Significant risk & opportunity savings pre-construction <0.3% Client CEs, No delay claims between suppliers Close down of commercial issues in supply chain and with client Programme: All key milestones achieved or beaten Removal of BD79 3 Months early Early contract completion including all handover documentation on day of completion Quality & Service: Handed over defect free Industry leading KPIs First Highways Construction Project to be accredited to BS11000 for collaborative working and relationship management

16. 10% reliability improvement: Daily meeting providing central point for co-ordination Identified key items reducing reliability Team value meeting output Transparency Practical integration of tasks Lean Deployment – Production Control

17. Lean Deployment - Collaborative Mapping(Collaborative Planning) What we did: Facilitated a weekly collaborative planning session between Costain & the main sub-contractors Supervisors to create a joint, integrated 3 week look-ahead. Hard Benefits: Reliability of 2 weekly planned tasks improve from 22% to 77% in 8 weeks. Sustained at 79% for construction. Master programme drives lookahead targets. Only 1no trusted planning resource for all trades No claims between sub-contractors Soft Benefits: Communication and transparency markedly improved. The Supervisors trade off & make planning agreements and are focused on delivery. Pre-emptive problem solving is the norm. Trust between the trades. Collaboration & helping others is the norm. M53 – Bidston Moss Collaborative Planning

18. Reducing Design Cost

19. Results • 30+ % savings on 9 designs. • Several weeks and in some cases months removed from programmes • Waste identified • Construction Risk minimised. Construction input throughout and a review on completion • Repeatability – identified savings can be repeated

21. Why develop & implement HALMAT ? • HA wants Lean embedded into supply chain to drive efficiency. • HA wants a way of measuring S/C organisations’ maturity in Lean. • What gets measured gets done. • From a HALMAT assessment a Lean Improvement Plan provides a map of future development. • who benefits : Tax payer / travelling public/ the S/C organisations

22. Requirements to show lean thinking has been adopted • Strategic use of Lean • Lean leadership • Understanding customer value • Process focus • Standard work • Process control • Planning, design, development & construction • Maintenance of equipment, quality etc • Supporting infrastructure

23. Example – Lean Leadership(Purpose: To indicate to what degree leaders are active in encouraging Lean introduction)

25. Lessons learned • Valuable to engage with supply chain – senior management / training Lean practitioners/ secondees • Create Lean Demonstration projects • Measure benefits in consistent way- ROI 20:1 • Create Guides – common terminology • Hold regular Lean seminars to demonstrate what others are doing • Communicate success Knowledge Transfer Packs and Webinars • Measure CI / Lean maturity HALMAT and include in performance measures • Use the full range of tools as appropriate e.g. Lean Visual management : Collaborative Planning : Value stream mapping : Six Sigma • Engage Tier 2 - where real money is spent

26. Future vision • Supply chain take initiative forward and create own vision of Lean for industry • Tier 1 Supply Chain assist lower tiers to improve efficiency • HA assist Category Management Framework suppliers and key Tier 2 suppliers • Lean becomes “way we do business” and Lean maturity levels increase • Experience on Lean is shared across Supply Chain openly • HA take Lean forward internally

27. Summary • Scale of prize for Highways Agency (HA), England • Ways to create integrated teams • Early Contractor Involvement • Category Management Framework • Lean deployment in supply chain • HALMAT ( HA Lean Maturity Assessment ) • Changing the Culture is key !! • Client Leadership is necessary

28. Thank you for listening • http://www.highways.gov.uk/business/31171.aspx • Any Questions?