Owner Talks Benefits of IPD and Lean

An Owner's Perspective on Lean Project Delivery” was a recent event held by the Lean Construction Institute (LCI) Carolinas Community of Practice (CoP) on the evening of August 14. Hosted by the DPR Raleigh-Durham office, the program highlighted the benefits of Integrated Project Delivery (IPD) and lean techniques, specifically within healthcare.

Speakers included Christian Pikel from Universal Health Services (UHS) and their team members on various projects who discussed their IPD journeys. The panelists illustrated that with lean concepts and ultimately, the use of an integrated form of agreement, building behavioral hospitals can be better (zero disputes), faster and cost less. (Yes, all three are possible!)

In addition, the speakers also discussed the DPR-Turner joint venture project, UHS Temecula Valley Hospital project in Southern California, which also incorporated IPD and lean construction principles.

Pikel shared that together the Temecula team reduced the total cost per bed from the California average of $1.8 million per bed to an unprecedented $1.1 million per bed, while at the same time reducing the owner’s milestone of "heads-in-beds" (not substantial completion) by 25%. Constructed in 19 months, Temecula received certificate of occupancy in July and there was a recent opening celebration that drew 7,000 people.

Some interesting points of the overall discussion:

  • In 2012, UHS completed 140 projects totaling $540 million across the country with only 10 full-time equivalent project managers.
  • UHS considers themselves an equal partner of the team.
  • UHS project teams are self-forming, which means that as each entity is selected, they become part of the selection committee for all the remaining team members.
  • Team members are chosen based on capabilities, team work and innovation.

Some 40 representatives from the local A/E/C community were in attendance.

About LCI
LCI's purpose is to reform the management of production in design, engineering and construction for capital facilities. LCI developed the Lean Project Delivery System™ (LPDS) that applies lean construction principles and tools to facilitate planning and control, maximize value and minimize waste throughout the construction process.

In Raleigh, DPR’s Steve Gray is a member of LCI Carolinas Core Group as well as the Education Task Force.

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