 |
|
Buy the Bucket Boss Employers, Post your Job for Free on our Listserve Need a Job, Post Your Resume Free Online Approved Continuing Education Courses National Real Estate Listings without the Commissions! Click
Here to Bid on Construction Projects SAVE MONEY on engineering, surveying, and construction supplies - Click Here
 Construction Master Pro Trig Plus III Calculator 4075 Construction Calc Software: The Power Tools of the Building Industry
E-Background Checks for Employers or Job Applicants
Free Construction Email
Construction Add
Your Construction
Materials Construction
Construction
Projects Pre-Screened Construction
Journals Construction
Codes, University/College
Construction Distance
Education Earn a Masters Degree in CM completely online Student Construction
Construction
Jobs Resumes of Cost of Living Educational Research
Free Financial Aid Construction Books
Construction
Construction
Research ASTM UNIFORMAT II
|
OPERATIONS MANAGEMENT TRENDS William A. Abberger, Gretchen Gagel McComb and William S. Spragins, FMI The construction industry is truly an industry driven by, focused on, and centered around people. We are increasingly aware of the organizational changes happening around us, so organizations cannot focus on the technical aspects and ignore the people. The following examines some of the trends in the operational arena during the coming decade.
The unavailability of skilled labor is the number one limitation to growth in most markets. Shrinking labor pools are affecting contractors in every market and industry segment. This is forcing organizations to reduce turnover by focusing more attention on working conditions and employee morals, and to put more effort into and resources toward employee recruiting. An aging work force is contributing to labor shortages, created by a negative industry image that does not attract young workers. Workers who are entering the work force have less technical and basic skills, forcing organizations to take on more internal training in order to develop a quality work force. The shrinking labor pool is forcing organizations to look to nontraditional labor pools such as women and minorities. This in turn has driven a need for employee training in diversity and gender sensitivity. Employees are becoming more sensitive to constant relocation and are becoming more demanding in their involvement in these decisions. All of the work force trends are forcing managers and leaders to exert additional effort in motivating and keeping employees. The techniques of yesterday do not work today, and this is driving more management and leadership training.
There is a shift toward teaming of construction stakeholders to provide one-stop shopping for purchasers of construction products. This is being accomplished through short-term joint ventures, long-term strategic alliances, and vertical integration through mergers and acquisitions. All of these combinations are based upon the ability present a united project team and increase the focus on team building and alliance skills. Design/build continues to become a more prevalent procurement process, even in the public sector, as owners and agencies begin using alternative procurement strategies focused on "best value." However, hard bid for now, is here to stay. Prequalification requirements are pushing quality programs and the need for additional presentation and speaking skills. Owners are looking for a team that can clearly communicate their abilities and virtues. Owners are increasingly using a safe working history as a selection criteria. PROJECT DELIVERY Project schedules continue their trend of time comprssion, and cycle time for construction processes will be the major focus of the next decade. We have progressed from "fast track," and there is no looking back. This puts additional pressure additional pressure on the need for effective project management and field productivity. The overwhelming amount of information necessary to complete a project and the need for timely information is driving the need for more effective communication tools. Solutions such as project intranets on the internet, project e-mail systems, video teleconferencing, and digital photography are only the beginning. Organizations that can effectively utilize these tools have the competitive advantage. Technology advancements, such as utilizing the Global Positioning System for project surveying, will continue to challenge an organization’s ability to keep up in technical training needs. The collaborative project delivery project is becoming the norm in both the public and private sectors. Whether we label it partnering or high- performing teams, the need for speed and quality will demand that we approach a project as a team and not as adversaries. Alliance-type approaches allow the contractor to be involved early in design decisions and collaborate on constructability issues continues.
TQM is not dead, just as it was not truly new ten years ago. It is about an ongoing philosophy of business of doing the right thing the first time. It is about continually pushing to do things better, because if you aren’t, someone else is. Highway contractors in some areas are now performing their own QA/QC with audits, putting the trust back in contracting. ISO 9000 continues to be explored by the construction community, and its philosophies touted for driving control and process into project delivery.
The industry focus on providing a safe work environment continues to intensify. More owners are requiring a safe work history as a selection criteria in awarding work. Many industry firms have reached a plateau after several years of continuous safety improvements. While significant improvement in safety procedures and conditions have been realized, unsafe behavior results in 85% of all job-site accidents. Some firms are implementing behavior-based safety processes to move closer, and in many cases, attain the zero injury goal. The zero injury goal is being adopted by more firms as the cost of accidents continues to escalate. Workmans’ compensation rates have doubled over the past ten years. While construction accounts for 10% of the GDP and 5% of the work force: we experience 20% of all traumatic occupational fatalities and 12% of all disabling injuries. Some companies are reaching the zero injury plateau through employee involvement, increased awareness, and a focus on safe behaviors. FIELD PRODUCTIVITY IMPROVEMENT Formalized field productivity improvement efforts will become commonplace for labor-intensive contractors. Like safety, continuous improvement efforts will focus heavily on the operations side of the business, where 85%- 95% of the dollars are spent. Management training and development for superintendents and foremen continues to be a major focus for progressive contractors. Heavy emphasis will be placed on developing superintendents into leaders, as opposed to relying solely on their technical competence. Technology will continue to permeate the field with the use of the internet, intranets, and hand-held technologies. Access to documents and information will be readily available, with less need for mail, courier, or overnight delivery services. Field managers will continue to become more competent and comfortable using new technologies. The quality of field management will become a strong differentiator between contractors. The companies with the best superintendents and foremen will be the long-term winners in the industry. Contractors are demanding quantifiable returns from their investments in quality programs, such as direct cost savings, increased productivity for equipment and labor, and increased bottom-line profits. There is an increased awareness by many contractors of the need to define specific project control activities, and ensure they are followed. The days of "winging" projects and depending on "good people" to pull them through are over. Many contractors are sharing productivity and cost and profit information with their field forces. They feel the sharing of information breaks down the "office-field" mentality, and shows a willingness to trust their field employees.
Partnering continues to be utilized as a viable methodology to improve the design and construction process. More public and private entities are implementing the process, which has resulted in both success and failures. The industry does agree that while the process has never hurt a project situation, it has in most cases improved project communication. Those in the high-tech industry and other private entities who have experience in developing long-term alliances with their suppliers, are now utilizing the project-specific partnering model to further improve relationships and results. Truly innovative and progressive project teams are utilizing the process less in conference room settings and more on the job site, pushing the concept to the subcontractor and craft levels, creating an atmosphere of team team involvement. Collaborative accountability to the project charter goals and metrics is continually reinforced throughout the duration of the project in these settings. Other teams who have focused only on the kickoff workshops as the primary use of the partnering process on their projectsThe manufacturing industry has found applications for the partnering process on major production contracts. The construction industry should be applauded for taking the lead and pioneering a concept that is now being transferred to other industry sectors. Well done! INTERNATIONAL The United States’ major private owners are devoting ever increasing shares of their capital spending dollars to overseas facilities. A poll of the 1996 Business Roundtable Construction Conference identified 50%- 75% of owner budgets directed to international facilities construction. In addition, a recent poll of national AGC’s international contractors reported that 70% of thee contractors’ international projects have been unprofitable. Expect to see owners and contractors focusing on the cultural, political, logistical, and procedural issues that are causing these losses. This reality cannot continue. Bill Abberger, Gretchen McComb, and Bill lSpragins are part of FMI’s Quality & Productivity Improvement Group. For more information please contact Gretchen McComb or Bill Spragins in Denver at (303) 377-4740 or Bill Abberger in Tampa at (813) 636-1364. Return to the List of Articles Return to the Association for Project Managers Main Page Email the Association for Project Managers
|
 |