INCREASING CONSTRUCTION PROJECT PERFORMANCE THROUGH LAST PLANNER SYSTEM IMPLEMENTATION

OBSERVATION

The leadership team responsible for delivering a series of level crossing removal projects identified the implementation of the Last Planner System as an opportunity to drive continuous improvement and innovation through their program.

McKinsey & Company reported in 2017 that 61% of Australian construction projects are late, 70% complete over budget, and customers are dissatisfied.

The Grattan Institute reported in November 2020 that large rail and road construction projects such as level crossing removal have an overrun frequency rate of 32% and an average cost increase of 19%.

Deployment of the Last Planner System creates significant improvements in project predictability, productivity, speed of delivery, profit, and feelings of wellbeing among project staff.

Research in Denmark and Chile has found that Last Planner managed construction sites have up to 75% fewer accidents.

Constructing Excellence in New Zealand reported that the Manukau Harbour Crossing project completed seven months ahead of schedule using the Last Planner System, with one large contractor reporting a 30% increase in profitability.

ORIENTATION

Through a partnership with US-based company Touchplan®, ORBIZ supports construction companies to implement a platform that enables effective implementation of the Last Planner System.

Touchplan would underpin the delivery of a level crossing removal project valued at approximately $200m to elevate the railway over a busy suburban road through a 22-month construction program.

Our team provided end-to-end project management and consultancy services:

  • Develop a change management plan by assessing existing planning systems, processes and infrastructure to identify change requirements.
  • Train key personnel in Last Planner System principles and all aspects of Touchplan.
  • Establish new IT infrastructure and management practices.
  • Coach the project team through the implementation to establish effective use of all software functionality.

OPTIMISATION

The implementation of Touchplan provided the following benefits:

  • Collaboration across planning and construction increased, resulting in a highly engaged team utilising Touchplan to deploy each phase of the Last Planner System.
  • Touchplan provided complete transparency of program performance with one version of the status accessible to all stakeholders on their mobile and desktop devices.
  • Increased accountability of frontline planning improved the delivery reliability of promised work.

IMPACT

Plan Percent Complete (PPC) performance of >80% achieved compared to 50% industry average.