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4th Lean Construction Institute Academic Forum

Atlanta, Georgia 2/14/2004

Tariq S. Abdelhamid, Ph.D. Assistant Professor

1 T. Abdelhamid - LCIAF 2004

Outline

LCIAF history and mission LC Teaching NSF-sponsored LC workshops

T. Abdelhamid - LCIAF 2004

Lean Construction Institute Academic Forum


LCIAF Established (U of Colorado) LCIAF meeting (ASU) 2nd LCIAF 3rd meeting (MSU)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2001

2002
LCIAF 4th meeting (MSU)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2003
T. Abdelhamid - LCIAF 2004

2004
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LCIAF Goal
The Academic Forums primary goal is to further and encourage serious considerations of lean construction education and training for professionals entering the architectural / engineering / construction industry (AEC).

T. Abdelhamid - LCIAF 2004

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LCIAF Mission Statement


The Academic Forums mission is to promulgate and enhance the understanding and appreciation of lean construction thinking in institutions of higher education and advocate the discovery and exchange of knowledge concerning the concepts, principles, and methods of lean construction systems. The Academic Forum will be the venue of choice for academics to learn about the Lean Construction Institutes research and implementation efforts and for sharing lean construction pedagogical ideas.

No mumbo jumbo language:

Spread the LC message, get academics on board to teach it in college/university classrooms and conduct research.
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Academic Forum Strategic Priorities


In support of its mission LCIAF will: Hold seminars, workshops, and symposia to promote lean construction integration in undergraduate and graduate curricula in architecture, civil engineering, and construction management programs. Solicit involvement from public funding agencies in conducting research and educational programs Providing a forum for students pursing masters or PhD degrees in Lean Construction to report, discuss and exchange ideas and experiences regarding their ongoing research. Reward high achievement in research and teaching through an appropriate program of recognition
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Tariq Abdelhamid - MSU 7

LC Teaching at MSU
Tariq Abdelhamid (tabdelha@msu.edu); Construction Management Program, Michigan State University 3-credit hours graduate course titled: Lean Construction Principles and Methods ; course covers:

Traditional CM process Productivity improvement techniques (work sampling) Design of construction operations using simulation The history and evolution of production paradigms The principles of lean construction production (Production Control and Work Structuring) Lean construction enabling tools
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LC Teaching at MSU
Tariq Abdelhamid (tabdelha@msu.edu); Construction Management Program, Michigan State University

Students typically dont have a problem learning new material, but it is more difficult to unlearn what they already know. It is very important to assess students understanding of the traditional CM process and correct any misperceptions. The students should be allowed to discover problems with current CM practices through discussions of pertinent reading material as well as case studies and instructor own experiences. This will make them more receptive to the lean construction ideas.

T. Abdelhamid - LCIAF 2004

LC Teaching at MSU

Games / Case Studies/Software


Collapse at 2000 Commonwealth
Email tabdelha@msu.edu for case

Delta Design (cross-functional design teams)


Contact Louis L. Bucciarelli from MIT (llbjr@mit.edu )

Dice Game (variability impact on workflow)


Contact Greg Howell at LCI (ghowell@earthlink.com)

Paper-based Airplane Game (one-piece mfg vs batch systems)


Email tabdelha@msu.edu for case

EZSTROBE (simulation software) Download from Julio Martinezs website ( http://strobos.cee.vt.edu/ )

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Construction as Usual

Improvement Initiatives
Value-engineering Design-build Partnering TQM Constructability Safety
e rs u Co is Productivity Th
is Th rs ou C e

Lean Construction

Project Management

&
is Th rs ou C

Project Management (CPM and Contracts)

Improvement (work sampling; computer simulation; safety)

Flow and Value Mgmt


se ur Lean Supply Co Lean Assembly is Th

Lean Design

Work Structuring Production Control

Waste

Waste

Waste

Customer Satisfaction
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Customer Satisfaction

Customer Satisfaction
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LC Teaching at MSU

Conventional Cost principle

Cost + Profit = Price Cost + Profit = Price


Price to Sell

Profit Profit
3

2 1

Cost to Produce

Profit Profit

2 1

Determining cost (direct/indirect) then adding profit diverts attention from the fact that costs should be reduces and not profit when cost of material/labor/equipment increases.
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Kentucky Center for Experiential Education 1998 / Shingo 1989 (adapted)

LC Teaching at MSU

Time Cost Tradeoffs


T/C guides planning/control Total Cost

CE COST ($) TM
Minimum Total Cost Direct Cost
Minimum Duration

Minimum Direct Cost Indirect Cost

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DURATION

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LC Teaching at MSU

Quality Cost Tradeoffs


Q/C guides planning/control Total Cost

COST ($)

Minimum Total Cost Construction Cost


Quality Control & Correction Costs

Increasing Quality of Conformance


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LC Teaching at MSU

Origins of Time Cost Tradeoff


The roots of T/C , Q/C tradeoffs can be found in inventory management literature as far back as the 20s. (Compare to graph on previous 2 pages!)

Total Cost

COST ($)

Minimum Total Cost

Processing/Setup Costs

Carrying Cost

EOQ
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Quantity (Lot Size)


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LC Teaching at MSU

Management Levels in Construction

Organizational Project Activity Operation Process Work Task


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Company structure; Multiple project attributes Project breakdown according to contract, specs , dwgs; cost; time; resource control Activity status against budgeted cost/time; resources use Today, CM focuses on this box!!! Focus on day-to-day functions. Choice of construction methods. Decisions on activity sequencing. Management of trade interactions)

Adapted from Halpin and Woodhead (2000)

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LC Teaching at MSU

Estimating and Dilbert

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LC Teaching at MSU

Scheduling and Dilbert

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LC Teaching at MSU

Construction Project Management


The relation in this curve clearly supports the need to have collaboration among project participants early on in the project.

Why havent we acted on this before?

Lean construction advocates the creation of cross functional teams to consider constructability and maintainability early on.

Ahuja et al (1994)
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LC Teaching at MSU

Common Practice: Ignoring Waste!


Cycle Time = Processing + Handling + Inspection + Wait In construction:
Focus only on reducing Processing (conversion) time using technology, equipment, automation, and to some extent modularization. Disregard Handling + Inspection + Wait (waste) component [part of doing the businessEasiest escape-goat is uncertainty]
A B C D E

1-5% Processing (Conversion); Value adding

Activity

F G H I J K L M N O P Q

95-99% Handling, Inspections, and Wait; Non-Essential; Waste

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Current Project Planning!!


(Ballard 2000)

PROJECT OBJECTIVES

INFORMATION

PLANNING THE WORK

SHOULD

The SHOULDs are placed on a timeline; what we eventually call a CPM SCHEDULE (created with minimum team input; overlooks prevailing conditions on site; assumes activities are independent entities)
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Current Production Planning/Control??


Production is viewed only as a TRANSFORMATION of inputs to outputs
(Ballard 2000)

SHOULD

RESOURCES

EXECUTING THE PLAN

DID

Current project control focuses only on should vs. did ; Develop recovery plans; Hope project gets on track; Deviation-based control
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(Adrian & Adrian 1995)


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LC Teaching at MSU

Current State
Projects seldom finish on time/budget/quality Far too many claims!!!
We ignore value to the customer (Get involved too late) We only manage the project; ignoring production We use deviation-based control We focus on local productivity not system throughput improvement
Our hit-miss ratio is very low (high input-low output systems)

We manage a non-linear dynamic process as if it is linear static one!!!

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LC Teaching at MSU

Lean Production
is a production philosophy which shortens the time line between the customer order and the product shipment by eliminating waste and maximizing value to the customer.
Business as Usual

Customer Order

Waste Time

Product Shipment

Lean Production

Customer Order

Waste

Product Shipment

Time (Shorter)
T. Abdelhamid - LCIAF 2004

Kentucky Center for Experiential Education 1998 / Shingo 1989 (adapted)

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LC Teaching at MSU

Why Lean?
Compared to conventional manufacturing principles, products manufactured using lean principles have required significantly less resources to produce and have resulted in the following (Technology Century 10/2001):
1. Productivity gains of 300 to 400%. 2. Labor productivity increased an average of 25% a year. 3. Defect rates reduced from more than 2000 to less than 50 parts per million (PPM) and in many to less than 10 PPM. 4. Cost of quality cut by over 60%. 5. Work-in-process inventory slashed by more than 80%. 6. Revenue per 1000 square feet of factory space was raised 350 %.
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LC Teaching at MSU

What type of production is construction?


Construction is a project-based production system Fixed-position manufacturing (whole assembled from parts; workers complete processes on a stationary product) Final product is rooted in place (uncertainties and customer involvement) Directives- Driven

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Howell Howell (1997) Ballard andand Ballard (1998)

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LC Teaching at MSU

What is LEAN Construction?


LC is managing construction using:
Activity Management (CM practices; CPM and Contracts) Flow Management Ensure reliable workflow (Remove Waste)

Design product and process together using cross-functional team Shift design responsibilities to suppliers Reduce inventories (pull material to site; concrete) Give workers the right to say No to things they CANT do Conformance-based control Standardize and industrialize wherever possible
Understand and challenge customer requirements

Value Management
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Lean Construction Institute, 2001 (adapted)

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Who is doing it
Owners: Intel, Ford, Solutia, Pentagon Renovation, Rice University, BAA Designers: IDC, Neenan, Burt Hill Kosar Rittelmann, NIRAS, Albert Kahn Constructors: Boldt, Kinetics, Southland Industries, Neenan, Linbeck, DPR, EMCORGowan,Trautman & Shreve, Marelich, Fluor/Ames/Kramer, Walbridge-Aldinger, Integrated Project Delivery, Simpson Mechanical, Graycor, Frank Messer, NIRAS/MTHS

Lean Construction Institute visit http://www.leanconstruction.org


Seminars and workshops on LC Contributing members are privy to research projects conducted by the institute
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LC Teaching and Research


Universities teaching and performing research in Lean Construction:
USA UC-Berkeley MSU University of Florida University of Colorado Boulder Virginia Tech Arizona State University San Diego State University Finland - VTT Technical Research Centre Denmark Brazil - Federal University of Rio Grande do Sul Chile Catholic University of Chile, Santiago England - University of Birmingham / University of Northumbria Technion - Israel Institute of Technology Australia

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LC Teaching at MSU

Lean Non-Cost principle


Price to Sell

Some Profit Some Profit


Cost to Produce

3 2

Bigger Profit Bigger Profit


2

Price -- Cost = Profit Price Cost = Profit


Only way to increase profits is to reduce costs. Hence, the focus on work flow (waste removal and variability reduction)
Kentucky Center for Experiential Education 1998 / Shingo 1989
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LC Teaching at MSU

7 Forms of Waste
CORRECTION WAITING
Repair or Rework

MOTION
Any wasted motion to pick up parts or stack parts. Also wasted walking

Any non-work time waiting for tools, supplies, parts, etc..

Anywhere work is performed, waste is being generated and must be removed.

PROCESSING
Doing more work than is necessary

Types of Waste

OVERPRODUCTION
Producing more than is needed before it is needed

INVENTORY
Maintaining excess inventory of raw matls, parts in process, or finished goods.

CONVEYANCE
Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes.

Add to this list any other factors pertinent to your company or industry.The concept is what matters
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T. Abdelhamid - LCIAF 2004

Kentucky Center for Experiential Education 1998 / Shingo 1989

LC Teaching at MSU

Finding Waste using Value Stream Mapping


VSM identifies all steps required to transform inputs to outputs. Duration of process steps are recorded as well as time delay. This will will identify value added time vs. non-valued added time. Create Value Map Identify opportunities for improvement Restructure process Develop work plan to implement new process Define performance metrics Analyse cost savings Walbridge Aldinger improved billing and progress payment process accuracy using VSM (went from 43% to below 5% problems in billing).
Rother, M. and Shook, J. (1998). Learning to See: Value Stream Mapping to Create Value and Eliminate Muda. v.1.1, Oct., The Lean Enterprise Inst., Brookline, Mass.

Mason placing the glass blocks

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LC Teaching at MSU

Lean Production is not just JIT


JIT stand for Just-In-Time production, delivery, etc. IT DOES NOT MEAN ZERO-STOCK PRODUCTION A method to decrease inventory on hand and WIP which leads to waste reduction.

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LC Teaching at MSU

Waste, WIP & Inventory

(Hopp and Spearman 2000)

Transformation Production (CRAFT and MASS) Work-In-Process


River

Production Problems

Inventory Levels

High inventory levels mask production problems.


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LC Teaching at MSU

Waste, WIP & Inventory

(Hopp and Spearman 2000)

Lean Production
Work In Process
River

Fewer Production Problems

Lower Inventory Levels

As inventory levels are decreased, production problems are encountered and dealt with.
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LC Teaching at MSU

Visual Site (Factory): Another Tool

Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.

5-S
1S 2S 3S 4S 5S Sift and Sort Stabilize Shine Standardize Sustain (Organize) (Orderliness) (Cleanliness) (Adherence) (Self-discipline)
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T. Abdelhamid - LCIAF 2004

Kentucky Center for Experiential Education 1998

LC Teaching at MSU

T. Abdelhamid - LCIAF 2004

Kentucky Center for Experiential Education 1998

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LC Teaching at MSU

Standardized Work
Captures best practices Posted at the work station Visual aid Reference document
work sequence job layout time elements safety

Developed with operators Basis for Continuous Improvement


Kentucky Center for Experiential Education 1998
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LC Teaching at MSU

Last Planner System of Production Planning and Control

Last Planner is the final person who gives the assignment to crew to actually perform the work The last planner system is a production control and workflow system designed to:
Empower front-line personnel to make decision about what work to commit to; Shielding; PPC = production system variability Improve workflow by ensuring that future work is READY !! Lookahead process: a pull process!!!

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Project Objectives

The Last Planner System

LC Teaching at MSU

SHOULD CAN WILL


Information

Planning the Work

SHOULD

Should vs. Did


The Last Planner Phase I [work we THINK can be done]

Can

The Last Planner Phase II [work we KNOW can be done

WILL

PPC = DIDsWILLS
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Inputs

Production

DID

Lean Construction Institute, 2001, (adapted)

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Examples of LC Teaching
Glenn Ballard (ballard@ce.berkeley.edu), Engineering and Project Management Program; Department Of Civil Engineering; UC- Berkeley

CE290M Improving Performance in Engineering Driven Organizations. Catalog Description: Students will understand competing theories of management, and alternative approaches to integrating work execution and improvement. The focus will be on engineering-driven organizations and sectors, such as electronics, the automotive industry and the engineering/construction industries. Course Objective: Students will understand lean construction concepts and techniques of production management, the potential for and obstacles to improving performance, what data provokes and supports positive change, how to collect that data, and how to use it. Outline and reading material available
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Examples of LC Teaching
Marton Marosszeky (m.marosszeky@unsw.edu.au ) ; University Of New South Wales, School Of Civil And Environmental Engineering Project Management Tools & Skills full semester course - graduate

Looks at the construction process at the project, supply chain and industry levels; Study actual projects and supply chain operations as case studies and examine computer-based technology for supply chain integration. Major topics include the Toyota Production System and its potential in construction, (lean construction principles) process risk management, supplier management, quality and productivity improvement, real time information systems, work restructuring, and supply chain innovation. Lecture outline and readings available.
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Examples of LC Teaching
David Ford - dford@civilmail.tamu.edu (Texas A&M university Civil Engineering)

Present Lean as a general concept to facilitate transfer across applications. Describe construction as a service supply chain and then discuss management approaches, including traditional push, which opens the door to describe pull as an alternative. Discuss size of inventories and the opportunity to reduce these costs by controlling inventories and adjusting production rates. Transparent models of construction systems are used to demonstrate the conventional versus lea-based thinking. I do not explicitly call these things "Lean", but could and would if I had the materials to facilitate that.
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Examples of LC Teaching
Eric Johansen (eric.johansen@unn.ac.uk); School of the Built Environment; University of Northumbria at Newcastle

"Lean" is a headline issue for the management of construction projects within the UK (Covered within courses of other titles) Undergraduate (seniors): General introduction and Last Planner as a focus for improving construction planning. Accounts for around 30% of the contact time of a senior undergrad construction management course Lean Design issues within a module called "Managing the Design Process" which mainly looks at Work Structuring, Set and Point based design with reading and discussion of few IGLC/LCI papers - about 20% of the contact time. Post grad: Project Management course that covers PMI/PMBOK; stealthfully change focus to "Producing the Project; Lean intro; Last Planner, Linguistic Action, Value Streaming and Supply Chain Management, design management 35% of the module.
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Examples of LC Teaching
Flvio A. Picchi (fpicchi@lean.org.br); University of Campinas and Lean Construction Institute - Brazil

Lean Construction for graduate students (45 hours) General lean principles while mapping to construction Lean in construction using IGLC papers (flow, design, job site, supply, maintenance). At the end of the course, students present seminars, with cases or theoretical discussions.
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Examples of LC Teaching
Rafael Sacks (cvsacks@technion.ac.il); Structural Engineering and Construction Management Unit; Faculty of Civil and Environmental Engineering; Technion - Israel Institute of Technology

Grad course on CM with 4 to 5 weeks on lean construction. Construction as flow of goods and services vs a collection of distinct activities Push vs pull flow control systems The mechanisms to monitor/control flow in construction vs Mfg Impact of variability and unreliability Identifying waste in systems

Lean thinking through the full project life-cycle, with special emphasis on design Games of various kinds are also very effective in teaching the concepts. Case studies that show practical implementations
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Lean Construction Resources


Materials for teaching as well as the latest research in LC: Lean Construction Institute (http://www.leanconstruction.org/) International Group For Lean Construction (http://cic.vtt.fi/lean/index.htm) Lean Construction Network (http://www.leancon-net.com/) And Soon; Lean Construction Journal (http://www.msu.edu/user/tabdelha/LCJ_RFP.htm)
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Lean Construction Higher-Education Workshops


National Science Foundation Directorate For Education And Human Resources Division of Undergraduate Education Course, Curriculum, and Laboratory Improvement (CCLI)

The CCLI Program seeks to improve the quality of science, technology, engineering, and mathematics (STEM) education for all students, based on research concerning the needs and opportunities that exist and effective ways to address them. Targets activities affecting learning environments, course content, curriculums, and educational practices, with the aim of contributing to the relevant research base. Proposals to improve undergraduate STEM education in a broad spectrum of institutions, including 2-year colleges, 4-year colleges, and universities. Single institution, a collaborative effort among several institutions, or a collaboration with business and industry partners. (NSF website; accessed Jan 2004)
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Lean Construction Higher-Education Workshops The following CCLI Program are relevant to LCIAF mission:

Educational Materials Development (CCLI-EMD)


Produce innovative materials that incorporate effective educational practices to improve student learning of STEM. Projects to develop textbooks, software, or laboratory materials for commercial distribution are appropriate. Two types of EMD projects will be supported: (1) those that intend to demonstrate the scientific and educational feasibility of an ideaa "proof of concept" or prototype and (2) those that are based on prior experience with a prototype that intend to fully develop and test the product or practice. (NSF website; accessed Jan 2004)
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Lean Construction Higher-Education Workshops

The following CCLI Program are relevant to LCIAF mission: National Dissemination (CCLI-ND)
projects are expected to provide faculty with professional development opportunities to enable them to introduce new content into undergraduate courses and laboratories and to explore effective educational practices to improve the effectiveness of their teaching. Projects should be designed to offer workshops, short courses, or similar activities on a national scale in single or multiple disciplines.

(NSF website; accessed Jan 2004)


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