Implementation of Lean - Case Study

APPLYING LEAN
TECHNIQUES IN THE
INFRASTRUCTURE
PROJECT
Jubail Industrial City , Suadi Arabia
Presented By-
Ameer Hasan
DFT 7
NIFT KANNUR
ameerhasan.nift@gmail.com

Lean Case Study Brief - Jubail Industrial City
The case study performed for this study focused on Jubail Industrial City in Saudi
Arabia.
 It is a planned city of 140,000, including facilities and infrastructure construction.
 Bechtel used a value stream map, system diagnosis, process simulation, pull
operations, standard work, and improved supply chain logistics to improve the
construction performance, identify wastes and drastically improve productivity.
NIFT Kannur - DFT (By - Ameer Hasan)
2

Jubail Industrial City - Location
• Jubail Industrial City' Jubail Industrial City (Figure) is one of the largest
civil engineering projects in the world today.
• The city serves 40 primary and secondary industries including oil
refining, petrochemicals and steel as well as hosts a community for
140,000 residents.
• Bechtel has been in charge of managing the project on behalf of the
Royal Commission for Jubail and Yanbu for the past 30 years.
• Bechtel has provided engineering, procurement, and construction
management of all of the facilities and the accompanying infrastructure
for the city located in Northeast Saudi Arabia.
3

Jubail Industrial City Delay
 In 2008, the Royal Commission re-launched its "Home Ownership Program" for its employees.
 The first set of construction contracts for the 415 villas was awarded in April 2008.
 In May 2009, the contractor had failed to erect and complete the super structure for a single
villa.
 Due to this delay, Bechtel initiated a system diagnosis to determine the root causes.
 The targeted area of improvement was increasing the number of exterior insulated panels that
were delivered to the construction site.
 The baseline performance target was 18 panels per day which had to be increased by 300% to
75 panels per day.
 The team needed to find the best way to achieve this goal in order to get construction of the city
back on track.
4

Jubail Industrial City: Waste Identified
 In order to thoroughly understand the current
state of the process the improvement team
created a VSM.
 This map was used to identify the causes for
delay and determine where the inefficiencies
were occurring.
The VSM focused on the cycle from mixing the
batch of concrete through to transporting
panels to the site.
The basic panel cycle is shown in Figure.
5

Jubail Industrial City: Waste Identified
 The team was looking for
evidence of waste in the
process which could be
improved.
 The team found five main
wastes that were
impacting the success of
the project as seen in
Figure
6

Analysing the wastes in the project
The assessment was made that the contractor had the basic resources in
place; the deficiencies were due to
 leadership,
 The process, and
 control of the project.
In order to address the new issues the team identified seven key areas of
focus and used six Lean tools to establish the performance metrics and
remedial measures to determine the current and desired performance.
7

The seven improvement areas the team focused on were:
• 1) Organization/Leadership;
• 2) Process/Flow;
• 3) Waste Nisual Controls;
• 4) Pull Systems;
• 5) Standard Work;
• 6) Resource Configuration; and
• 7) Logistics.
8

• These seven areas were analyzed using the following six Lean
tools:
• 1) Value Stream Mapping
• 2) Simulation/Modeling
• 3) Gemba/Kaizen
• 4) Takt Time/Pitch
• 5) Work Balancing; and
• 6) Control/Capability Charts.
9

Improvement Process
10

Improved Leadership/Supervision
The team found that there was a lack of top down supervision and this had crippled
the project's operations.
To correct this matter, the contractor realized that they had to break down
communication silos and create a collaborative environment.
This was done by first identifying a plant manager as well as a general site
superintendent.
Additionally, four foremen were appointed to six different production areas, and a full
time quality engineer was hired to reduce defects.
 These efforts helped to boost team morale and get the project back on track.
11

Optimized Process Flow Through Increased
Resource Utilization
A process simulation was performed on the pre-cast facility and significant
queuing time was identified for both the Gantry Cranes and the Concrete
Bucket.
Resources were quickly reallocated and two Gantry Cranes were then
dedicated to the production area instead of the one shared crane.
An additional concrete bucket was also introduced to speed up the casting
process.
These as well as a few other adjustments led to constant work on the
production line and created a higher daily throughput.
12

Eliminated Waste through Better Inventory
Management
Reconfiguration of the Panel Stockyard was recommended for better
access and control as it was a major bottleneck of the production process.
 The yard was unorganized which led to double handling while moving
and storing panels as inventory built up.
To correct the bottleneck issue, the team utilized a grid system which
provided an efficient method for correctly storing and locating panels.
Also, an extra transportation lane was added in order to load the panels
more effectively.
13

Transitioned to Pull Versus Push Operations
 It was discovered that the fabrication crew was producing panels that were not
needed immediately on site, which resulted in large inventory build-up.
To correct this, the fabrication crew worked with the contractor to develop daily
production schedules to determine which panels needed to be delivered and
when.
This helped the crew to develop a Takt Time (see Glossary) in which they found a
measurement of four panels an hour was required to achieve the 75 panels per
day requirement.
This effort led to increased productivity and collaboration on the project.
14

Documented Standard Work
A lack of standard activities with clear roles, responsibilities, and
accountabilities led to low craft productivity.
 The improvement team worked with site management to create
uniform standard work for both shifts and created a procedure-based
mode of operations.
As a result of standard methods, process cycle efficiency increased
from 6.6% to 22%.
15

Expanded Sandblasting Area with Dedicated
Resources
A major bottleneck in the flow of the panels was the lack of sand
blasting equipment and a secure and safe area in which to work.
 The improvement team found that the crew size had to be
increased from two to ten in order to handle the demand of the
project.
 Additionally, a new sand blasting area was created and one tower
crane and two mobile cranes were dedicated solely to this
operation.
16

Improved Logistics and Supply Chain
Long turnaround time of panel delivery trucks was cited as a major
delay due to the fact that one truck was delivering panels to many
different locations.
To solve this inefficiency, the stockyard crew was instructed to load
the panels in clusters of panels that were to be delivered to the
same location.
 This helped speed up deliveries and reduce cycle time.
17

Conclusion 18
Jubail Improvement Results

By moving through these steps,
 The project was able to achieve a 300% productivity gain in the span of one month due to the
implementation of the results from using LPD tools.
1. Further data collection and analysis confirmed that the process was in statistical control and that the
contractor was able to increase the mean output of panels to 80 per day, or a 44% increase from the
baseline.
2. Further analysis was conducted in order to confirm that the process was producing consistently and was
capable of meeting the specifications.
3. It was determined with a 95% Confidence Level that the improved process would deliver the required
output 87% of the time.
19

THANK YOU
National Institute of Fashion Technology , Kannur (India)
Presented By-
Ameer Hasan Malik
Ameerhasan.nift@gmail.com

Implementation of Lean - Case Study

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