7/20/2020 BETTER JOB SITE PRODUCTIVITY [NCLBGC 2 Hours Elective C.E.] COURSE DESCRIPTION ▪ The Purpose of this course is to provide help in Job Site Productivity. ▪ This course will survey processes pertaining to Employees, Supervisors and Subcontractors. ▪ It will show a prominent way to become an efficient and successful builder. 1
7/20/2020 THE ELEPHANT IN THE ROOM • Average annual increases in productivity were between 2-3% for all US industries throughout the 1990’s. • However, the construction industry was only 0.8%. Add that labor & material costs have always steadily increased as well Negative pressure to make or increase profits for the construction industry. AN INDUSTRY-WIDE ISSUE Why hasn't the Construction Industry been able to increase productivity? The construction business is unique regarding productivity related issues as compared to other industries. ▪ No two jobs are the same ▪ Each job has a unique location ▪ The work crews and subcontractors change from job to job 2
7/20/2020 WHAT TYPICALLY NEEDS TO BE ADDRESSED Labor productivity ▪ Typically the first item that comes to mind. ▪ A major and continual anxiety to construction managers and supervisors who are responsible for the control of costs. Material handling ▪ Usually the next item that is of concern and many times overlooked. ▪ Material management includes the procurement of the items, inventory control, shop fabrication, and field servicing. Any of these processes can be analyzed to see if improvements can be made. MEASURING LABOR PRODUCTIVITY The construction industry has the following properties: ▪ Large Numbers of Contractors equals Strong Competition ▪ Profit Margins are Small ▪ Small Errors May Eliminate Profit 3
7/20/2020 MEASURING LABOR PRODUCTIVITY Productivity in construction is often broadly defined as output per labor hour. How is labor productivity measured? Unit of Dollars of Output Labor = Person Hours of Input + Person Hours of Redo Work LABOR CHARACTERISTICS Labor characteristics that affect job site productivity are: ▪ Age (what physical attributes are required?) ▪ Experience of workers / Pace at which they work ▪ Equipment ▪ Worker interaction ▪ Supervisor/Leadership’s ability to motive and influence the level of productivity 4
7/20/2020 CAUSES OF NON-PRODUCTIVE WORK TIME ▪ Waiting for materials, labor or ▪ Theft, vandalism and waste equipment ▪ Accidents ▪ Workers waiting for instructions ▪ Substance Abuse ▪ Unnecessary movement of & ▪ Redo work materials ▪ Lack of job site supervision ▪ Inaccurate information ▪ Late start and early quitting ▪ Change Orders ▪ Punch lists TYPICAL CONSTRUCTION WORKDAY Accidents 3% Substance Abuse 2% Theft / Waste 3% Punch List 3% Changes 5% Inaccurate Information 5% Productive Work Unnecessary Movement 6% 50% Instructions 7% Waiting 14% Redo Work 2% Substance Abuse Accidents Theft & Waste Punch List Change Orders Inaccurate Info Unnecessary Movement of Tools/Materials Waiting for Instruction 5
7/20/2020 WAYS TO INCREASE PRODUCTIVITY ▪ Work Harder ▪ Work Smarter ▪ Improving Management Practices JOB SITE WORK CONDITIONS ▪ Job size and complexity ▪ Job site accessibility ▪ Equipment utilization ▪ Local climate ▪ Local cultural characteristics 6
7/20/2020 PLANNING SUCCESSFUL PROJECTS What is a successful project? ▪ Completed within financial budget ▪ Meets or beats the project duration schedule ▪ Constructed properly to meet quality standards expected ▪ No accidents occurred — free of injuries PLANNING SUCCESSFUL PROJECTS - CONTINUED Some of the tasks that will need accomplishing: ▪ Planning production budgets—supervisor meets with estimator for assumptions and contract document information ▪ Scheduling the major work activities ▪ Reviewing project contract documents: ▪ Drawings, Specifications (quality), General Conditions, Supplementary Conditions (special work), Addendum, and Agreement Form ▪ Pre-ordering long lead time materials ▪ Organizing the paper work flow 7
7/20/2020 QUIZ QUESTION #1 Approximately what percentage of time is the construction workforce productive? Choose one: o 30% o 50% o 70% o 90% QUIZ QUESTION #1 – ANSWER Approximately what percentage of time is the construction workforce productive? 50% - is the correct answer 8
7/20/2020 COST CONTROL OF LABOR PRODUCTIVITY ▪ Construction is a people business The largest risk and the biggest problem is labor . ▪ Cost control will help to deliver a profit The goal is to detect any deviations , and then follow up with a plan to correct this. ▪ Job cost system With no way of measuring performance, how do you know if the estimated costs are accurate? ▪ Need to control labor and overhead Too much work performed too fast and/or too cheap has forced many contractors into bankruptcy. COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED 9
7/20/2020 COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED Tracking by Labor Hours: COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED Tracking by Labor Dollars: 10
7/20/2020 COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED Tracking by Labor Unit Costs : COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED Reasons for Deviations in Job Cost Control ▪ Productivity Issues ▪ Estimating ▪ Change Orders ▪ Changed Conditions ▪ Poor Record Keeping 11
7/20/2020 COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED Record Keeping Best Practices ▪ Form completion / accountability ▪ Mandatory daily record keeping and transmittal ▪ Simple forms Check boxes as opposed to narratives ▪ Easy to understand A reference legend and clear instructions COST CONTROL OF LABOR PRODUCTIVITY - CONTINUED Other Benefits of Job Cost Tracking • Helps to establish a benchmark for the employees Form a goal to get something done before it will start costing the company money. • Measurement of Employee ability They can take pride in reaching the goal. Measurement proves to management that the workers are doing a good job. • Pinpoint problems during Estimating 12
7/20/2020 PERCEPTIONS AND REASONS FOR FAILURE TO TRACK FIELD JOB COST DATA ▪ Relay to workers that this is necessary in producing better and more accurate estimates ▪ Job costing needs to be thought of as a motivator ▪ Every estimate should have input from the production people before it goes out ▪ Take time in implementing a job cost control system ▪ Do not pressure field people ▪ Keep the reporting system simple or easy ▪ Constantly reinforce the importance to the field people QUIZ QUESTION #2 Contractors largest risk and biggest problem is the management of people (labor) —True or False? o True o False 13
7/20/2020 QUIZ QUESTION #2 - ANSWER Contractors largest risk and biggest problem is the management of people (labor) —True or False? True – is the correct answer YOUR PEOPLE - WORKING FOR A COMPANY OR FOR THE PROJECT? ▪ Employee Turnover ▪ Individual Initiative & Ambition ▪ Personal Attitude 14
7/20/2020 WHAT ARE YOUR EMPLOYEE MOTIVATION OPPORTUNITIES? Compensation Plans, Role Definitions, Style of Management, and Company Activities ▪ Physiological Needs ▪ Safety Needs ▪ Social Needs ▪ Esteem Needs ▪ Self-Actualization Every individual is unique in what motivates them. YOUR EMPLOYEE MOTIVATION OPPORTUNITIES— CONTINUED Journeyman Construction Worker Needs: ▪ Pride in Work ▪ System for measuring performance ▪ System for effective communication ▪ Monetary Benefits 15
7/20/2020 SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY – CONTINUED Constantly Ask: How many hours of punch work were expended? How many occurrences of double material handling were there? Is there more productivity in the morning or afternoon? Is productivity better before or after payday? SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY – CONTINUED Constantly Measure: o Distance material is moved? o Distance to the tool trailer? o Time spent waiting for material? o Number of hours expected on redo work? o Occurrences of theft, vandalism or other waste? 16
7/20/2020 SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY – CONTINUED Be the Second Line of Defense: Identify the existing method of work Plan an alternative method Perform a cost benefit analysis; total-cost, unit-cost, and productivity calculations between the existing and alternative methods. SUPERVISORS AND THEIR ROLE IN PRODUCTIVITY A supervisor should have the following abilities: 1) Knows the construction process of the trade(s) being supervised 2) Monitors the workers’ productivity, cost and risk 3) Monitors equipment productivity, cost and usage 4) Critiques & praises the work products and workers 5) Maintains a fair & respectful attitude towards workers & subs 6) Has the ability to track and record work progress data 7) Is open to listening to other ideas & opinions 8) Can make a plan & prioritize tasks 9) Emphasizes both a high quality work product and safe working conditions 10) Is a team player and able to motivate others without being arrogant 17
7/20/2020 MONEY— AND THE JOB Everything on a construction project involves spending — labor, materials, equipment and overhead. Supervisors think their responsibilities are supervising: framing, hanging drywall, or any other construction activity. -But- In reality they are supervising the spending of money. MEASURING WORK PERFORMANCE A method to calculate needed production per day or other time period: 18
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