How to Increase Productivity for Greater ProfitabilityHow to Increase Productivity for Greater Profitability By: Ted Garrison [email protected] 800-861-0874 Host of New Construction

How to Increase Productivity for Greater Profitability

By: Ted [email protected]

800-861-0874Host of New Construction Strategies Radio

www.NCS30.comFollow in Twitter @TedGarrison

(c) 2014 New Construction Strategies

Tuesday, January 28, 14

mailto:[email protected]


http://www.tedgarrison.com/


http://www.ncs30.com/


What’s the Biggest Source of Lost Productivity?


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What’s the Biggest Source of Lost Productivity?


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Waste!


Clemson Prof. Roger Liska’s Research

Construction Productivity

(c) 2011 - New Construction Strategies

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Clemson Prof. Roger Liska’s Research

Construction Productivity

(c) 2011 - New Construction Strategies

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The Lean Construction Institute found that over 50% of tasks assigned in any given week are not finished on time.


10 Types of Waste


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10 Types of Waste


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10 Types of Waste

1. Defects – anything that doesn’t work


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10 Types of Waste



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10 Types of Waste


2. Waiting –Liska report says 20% of loss productivity


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10 Types of Waste




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10 Types of Waste



3. Over production – storing in warehouse or estimating errors


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10 Types of Waste





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10 Types of Waste




4. Transportation – unnecessary loading or moving materials


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10 Types of Waste






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10 Types of Waste





5. Motion – searching for stuff


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10 Types of Waste







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10 Types of Waste






6. Over processing – duplicate forms or unnecessary reports


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10 Types of Waste








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10 Types of Waste







7. Inventory – unused stuff only clutters work space


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10 Types of Waste









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10 Types of Waste








8. Untapped employee creativity – potentially the worst


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10 Types of Waste










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10 Types of Waste









9. Stress/Over burden – it just zaps our energy


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10 Types of Waste











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10 Types of Waste










10. Unevenness/variation – destroys long-term productivity(c) 2014 New Construction Strategies

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WWWWW

WWWWW Does your Information Asset look like this?



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WWWWW



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WWWWW

WWWWW



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WWWWW

WWWWW



Reliability


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How much time do you spend chasing people?

The 11th form of waste – chase up!


Reliability


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Which weighs heavier on a project in terms of reliability?

The reliability of people to make and keep promises?Or

The reliability of stuff?


Chase-Up© One of my radio guests, Ed Anderson, coined the

expression – Chase-up©! NCS Radio (www.NCS30.com) interview: www.jackstreet.com/jackstreet/WCON.AndersonE2.cfm

He defines Chase-up© as “the act of checking over and over again the progress of a commitment or promise by either contacting other people, or directly inspecting the works to determine the progress.”

Some call it: follow-up, inspecting, expediting How much time are you wasting? What could you do with that saved time?


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http://www.jackstreet.com/jackstreet/WCON.AndersonE2.cfm

http://www.jackstreet.com/jackstreet/WCON.AndersonE2.cfm

Chase –up Syndrome©

Day-in and day-out, what is the average % of your time spent chasing the progress of commitments made to you? ________

What % of your time is spent being chased by others? ________

Obviously this is so important that everyone has been formally trained on how best to chase-up. So, what are the top three best practices of chase-up taught in your class?


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Let’s say we can reduce chase-up by 10%

If average worker earns $75,000 – that equals a $7,500 savings per worker or increased profitability • If you have 10 people – you could eliminate one

What are you going to do with all that extra time?• Be more productive?• Improve planning to reduce the schedule?• Improve quality?• Are you satisfied with your safety progress?


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Cost, schedule, quality, & safety are a reflection of:

Reliability!

• Reliability the ability to make and keep commitments, which allows

• Reliable planning and production


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Chase-up adds no value!• We can agree that some external discipline (chasing) must be

applied – but how much?

If chase-up doesn’t guarantee lower costs, faster schedules, higher quality, improved safety, what does it guarantee?• Higher costs and we don’t even know how much more because we

don’t measure chase-up!


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Example

You are scheduled to pave a road starting first thing Friday morning!

The underground contractor has agreed to complete the ten drains by close of business Thursday!

• Underground contractor lied – they hid a buffer!• You lied because you asked for it sooner than you needed!• This creates inefficiency!

Which crews would require the most chase-up?

You don’t know!


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Example

Compare 2 subs: one 40% reliable, the other 90%

Which one do you chase the most?

On a typical project, how long does it take to establish a contractor’s reliability?

Would it be worthwhile to reduce that time to days, and to be able to measure it objectively?

If “YES”, HOW do we measure the “Reliability of People to make and keep commitments” objectively?


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Example

The underground contractor had 10 drains to finish

Of those, let’s say 6 were completed 100%

The remaining 4 were 95% complete

Did they meet their commitment – yes or no?

Therefore, their CRI (Commitment Reliability Index) is:

60%Is this a fair evaluation?


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Example

How do we normally pay people?• Earned value – which is measure by productivity• EVM = $9,800 • [6 x $1000 x 100% = $6000] + [4 x $1000 x 95% = $3800] = $9800

• Let’s turn things on its head and ask: • What if we paid people based on reliability first and productivity

second?

Do you think that would change performance?• Reliability payment: $6000• [6 x $1000 x 100% = $6000] + [4 x $1000 x 0% = $0] = $6000


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CRI (Commitment Reliability Index) – Case Study

Before action was taken on learning• CRI trend was slightly positive – 45% to 48%• Variance around trend line significant


Tells us we are not very reliable, but doesn’t tell us what to do!


Identify the Problem – Case Study

If someone doesn’t meet his commitment get them to define the reason in as few words as possible

This isn’t a reprimand – it’s about identifying the problem

Chart the problems in a histogram


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Chart the Problem – Case Study

Tells us we are not very good at planning & coordination, but doesn’t tell us what to do about the problems!

Pareto Principle indicates 20% of the issues will cause 80% of the problems!



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Category Root Cause Task ID Date

*1*1

*1

*1

*2*2*2*2

Root Cause – Case Study



(c) 2014 New Construction Strategies 23

Commitment Reliability Index (CRI) – Case Study

CRI trend was slightly positive (45% - 48%)

Variance around trend line is sizable and trend lag on the low side (less reliable)

CRI trends very positive (49% to 84%)Variance around trend line is less than before, and trends on the high side (more reliable)


Applying the Application


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Weekly/daily production control & commitments


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Monday Morning: What are you going to do this week? Today to meet the week’s schedule?


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Tuesday Morning: Did you do what you said you were going to do yesterday?


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Tuesday Morning: Did you do what you said you were going to do yesterday?• If not,


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• Then why not in as few words as possible


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• Then why not in as few words as possible• Categorize (weather, planning, coordination, materials…)


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• What are you going to do today


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Repeat process the rest of the week!


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Review of CRI & Chase-Up


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Review of CRI & Chase-Up1. Of 10 slab preparations committed to be completed:

• 6 are 100% completed – 4 are 95% completed


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2. CRI = Actual # completed/Total # committed to• 6/10 = 60%


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3. A measure of reliability to:• Make & keep commitments• To plan & execute: “Did you do what you said you were going to do?”


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4. Not a measure of productivity or production


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5. What do you think is the average CRI on a non-lean project when first measured?


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5. What do you think is the average CRI on a non-lean project when first measured?

55%


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What Are Your Thoughts or Questions?


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Final Thoughts27



Final Thoughts

Planning is critical for improved performance – but without reliability it’s impossible to plan

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Final Thoughts


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Final Thoughts


Most people are trying to do their job - so help them to remove the obstacles to doing their job

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Final Thoughts



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Final Thoughts



Get rid of or avoid those that don’t want to fix the reliability issues

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Final Thoughts




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Final Thoughts




This is something you can implement immediately and get immediate results

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Final Thoughts





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Final Thoughts





So what’s stopping you?

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Thank you!By: Ted Garrison

[email protected]

800-861-0874Host of New Construction Strategies Radio

www.NCS30.comFollow in Twitter @TedGarrison









Documents

How to Increase Productivity for Greater ProfitabilityHow to Increase Productivity for Greater Profitability By: Ted Garrison [email protected] 800-861-0874 Host of New Construction