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    ON-SITE CONSTRUCTION PRODUCTIVITY IMPROVEMENTTHROUGH

    TOTAL QUALITY MANAGEMENT

    BYDAVID B. CORTINAS, DEGREE, (B.S.)

    REPORTPresented to the Faculty of the Graduate School of

    The University of Texas at Austinin Partial Fulfillmentof the Requirementsfor the Degree of

    Master of Science in Civil Engineering

    THE UNIVERSITY OF TEXAS

    December, 1991

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    ON-SITE CONSTRUCTION PRODUCTIVITY IMPROVEMENT THROUGHTOTAL QUALITY MANAGEMENT

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    ACKNOWLEDGEMENTSI owe a deep debt of gratitude to Dr. John D.

    Borcherding and Mr. H. Paul Cooper for their guidance andsupport during the development of this report. Most ofall, I would like to thank my wife, Annette, for herdevotion, understanding and support during thischallenging part of our lives.

    111

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    TABLE OF CONTENTSPage

    CHAPTER 1 INTRODUCTION TO CONTINUOUS IMPROVEMENT 1TOTAL QUALITY MANAGEMENT PHILOSOPHIES 1

    NEED FOR IMPROVEMENT 1TQM FUNDAMENTALS 2TOP MANAGEMENT COMMITMENT AND LEADERSHIP 6TRAINING 7TEAMWORK 8CUSTOMER AND SUPPLIER INTERACTION 9PROCESS MEASUREMENT AND ANALYSIS 12CONTINUOUS IMPROVEMENT 15

    DEMING/SHEWHART PDCA CYCLE 18CHAPTER 2 PLAN 21

    PEOPLE AND PDCA FOR PRODUCTIVITY IMPROVEMENT 21NEED FOR BETTER FEEDBACK DATA =22

    CURRENT METHODS OF OBTAINING FEEDBACK DATA 2 2PROCESS ORIENTED FEEDBACK 24

    PRODUCTIVITY MEASUREMENT TECHNIQUES 2ACTIVITY UNIT RATES 2 6LOST TIME AND CREW TRUE UNIT RATES 2 6

    COLLECTION OF DATA AND PROBLEM DEFINITION 2 8COLLECTION OF DATA 28

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    PROBLEM DEFINITION 2 9PROBLEM ANALYSIS AND IDENTIFICATION OF CAUSES 31

    ANALYSIS OF PROBLEM THROUGH STATISTICAL REPORTS 31IDENTIFICATION CAUSES 31

    PLANNING SOLUTIONS THROUGH TEAM APPROACH 38CONSTRUCTION COMPANY TQM ORGANIZATION 3 8PROJECT TEAMS AND TASK TEAMS 4

    PLANNING SOLUTIONS 43CHAPTER 3 DO 45CHAPTER 4 CHECK 48

    PURPOSE ====== 48MOVING MEAN-RANGE CONTROL CHARTS 51

    CHART CONSTRUCTION 51CONTROL LIMITS 5 6CONTROL CHART INTERPRETATION 58

    CHAPTER 5 ACT 62STEPS TO ON-SITE PRODUCTIVITY IMPROVEMENT g2

    INTRODUCTION 62REDUCTION OF INEFFICIENT OPERATIONS 63CORRECTIVE ACTION 64STANDARDIZATION 65

    CONTINUOUS IMPROVEMENT 6 6INTRODUCTION 6 6MAINTENANCE AND INCREMENTAL IMPROVEMENT 68

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    INNOVATIVE METHODS IMPROVEMENT 7CHAPTER 6 CONCLUSION AND RECOMMENDATIONS 72

    CONCLUSIONS 72RECOMMENDATIONS 7 4

    BIBLIOGRAPHY 75

    VI

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    Figure 4-2 Normal Distribution Curve 53Figure 5-1 Job Functions for Continuous Improvement . . 67Figure 5-2 Effect of Incremental Improvement onProductivity 67Figure 5-3 Effect of Innovation on Productivity 71

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    1. CHAPTER 1INTRODUCTION TO CONTINUOUS IMPROVEMENT1.1. TOTAL QUALITY MANAGEMENT PHILOSOPHIES

    1.1.1. NEED FOR IMPROVEMENTThe construction industry is experiencing increasing

    competition, rising legal cost related to cost overrunsand schedule delays, and decreasing profit margins. Thesesymptoms are forcing many construction companies torealize that fundamental changes in the way they conductbusiness must be made if they are to remain competitive.Consequently, many construction companies are beginningto adopt the methods and ideas of Total QualityManagement (TQM) used by many manufacturing companies toimprove the state of their industry 1 . TQM managementtechniques have been successful in manufacturing,service, and most recently in construction industries.Three Japanese contractors have earned the coveted DemingPrize for quality improvement since the mid-1970s 2 . Thisprogress was made despite the fact that constructionprojects are a unique one time process.

    ln Quality Management Organizations and techniques",Consturction Industry Institute , Source Document 51, (Aug1989) , p. 54.2 Ibid., p. 7.1

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    1.1.2. TOM FUNDAMENTALSTQM is a complete management philosophy with the

    fundamental objective of achieving customer satisfactionthrough continuous improvement of performance at alllevels. TQM management philosophies promote teamwork,continuous process improvement, customer and supplierinvolvement, innovation, training, and education toachieve customer satisfaction, cost effectiveness, anddefect free work. Continuous improvement of anycompany's performance measured in the basic terms ofquality , cost , and schedule will eventually lead tocustomer satisfaction. Customer satisfaction will leadto a competitive edge.

    The Japanese were the first to use modern TQM ideasin the early 1950s to transform their war torn nationinto a global economic power. These concepts weredeveloped from the teachings of Dr. W. Edwards Deming andDr. Joseph M. Juran. The integration of a bedrockphilosophy of management and statistical methods is thebasis of the Deming management method 3 . Both Deming andJuran emphasize that the systems and processes, throughwhich work is done, cause 85% of the problems encountered

    3Mary Walton, The Demina Management Method . (New YorkThe Putnam Publishing Group, 1986), p. 33.

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    in any organization, and that statistics can be used tocontrol these systems. The company's workers areresponsible for the remaining 15% of the problems (calledthe 85/15 rule) . For example, a construction workercannot perform a quality job when given faulty plans,poor instructions, or shoddy materials. Since uppermanagement controls the systems for the performance ofwork, improvements can only be made when managementembraces the obligation to improve the system not theworkers. Management must encourage teamwork at alllevels to identify and remove system problems; thereby,improve quality, decrease cost, and improve theproductivity of each process. Deming illustrates thebenefits of TQM through the chain reaction 4 shown inFigure 1-1.

    Improve " Cost decrease because of less ^ Improvequality rework, fewer mistakes, fewer productivity

    delays, and better use ofmachine time and materials

    * Increase * Stay in Provide jobsmarket business and more jobs

    Figure 1-1 The Deming Chain Reaction

    4W. Edwards Deming, Out of the Crisis (MassachusettsInstitute of Technology Center for Advanced EngineeringStudy, Cambridge, Mass, 1986), p.

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    In 1979, Philip B. Crosby joined Deming and Juran inpromoting quality consciousness through the publicationof "Quality is Free." He provides a fourteen stepquality improvement plan that begins with gaining anappreciation for what quality means, and for what thetrue "cost of quality" is in terms dollars. He contendsthat quality is conformance to requirements (notgoodness) , and that the only cost associated with qualityis the cost of doing things wrong. Undoubtedly, it isalways cheaper to meet the requirements right the firsttime 5 . The cost of quality is the cost associated withquality management activities (prevention & appraisal)plus the cost associated with failure. He uses the costof quality to convince top management of the need forquality, and to provide a basis to track the progress ofquality improvements 6 .

    Although TQM approaches differ, they all entail acultural change where attention is focused on meeting thecustomer's requirements through continuous improvementsin performance. The cost of implementing qualityactivities in the construction process is not cheap.However, as the quality of the construction process5Philip B. Crosby, Quality is Free . (New York: Mentor,1979) , p. 16.6 Ibid., p. 104.

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    1.1.3. TOP MANAGEMENT COMMITMENT AND LEADERSHIPQuality improvements can begin only after top

    management admits that problems exist, and thatimprovements are necessary. Since top managementcontrols the decisions and funds that define the systemscausing 85% of the problems (85/15 rule) , management mustacknowledge that they need and want to improve. Thisadmission creates a corporate environment where problemscan be identified, analyzed and corrected through anintegrated team effort.

    Top management must provide leadership and directionby: (1) adopting a new philosophy about quality, (2)developing a method for measuring quality performance,and (3) implementing a well thought out TQM plan forachieving improvements. Crosby suggests that companiesshould define where management stands on quality througha company policy statement 9 . Likewise, Deming calls thiscommitment to quality "constancy of purpose." 10Management needs to demonstrate a genuine concern for thepeople of its organization in order to gain theirsupport, commitment and participation in these newmethods. A prerequisite to gaining the commitment of

    9Crosby, p. 149.10Deming, p. 24

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    people is the elimination of adverse relationships andfear tactics so typical in today's constructionenvironment. Deming states that, for better quality andproductivity, people need to feel "secure. " He notesthat "secure" means to be "without fear." 11 Aconstruction environment where workers are without fearof bringing up problems, asking questions, and expressingideas is ripe for improvement.1.1.4. TRAINING

    Under TQM, everyone is responsible for improvingquality. Consequently, appropriate training at alllevels is essential to the success of a TQM plan. Basicinstruction should include the fundamentals of thecompany's TQM approach, team problem solving,interpersonal communications and interaction, andrudimentary statistical methods. The training effortshould be planned and tailored to fit each level in anorganization, and its effectiveness should be measuredand carefully tracked. Training must be a companypriority, if continuous improvements are to be made.Training and education plans also should consider thatquality improvements may mean fewer people, and that itis necessary to train these people to fill othernDeming, p. 59

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    function. Deming emphasizes that management must make itclear that no one will lose their job because ofimprovements in productivity12 . Education and retrainingis an investment in people that will have long termbenefits for the company, industry, and individual.Masaaki Imai, a noted Japanese quality expert said that"quality starts with training and ends with training." 131.1.5. TEAMWORK

    TQM activities involve everyone in the company,managers and workers alike. Teamwork is necessary to tapthe vast resource potential of the labor force, and todevelop cross functional cooperation that breaks barriersboth horizontally and vertically within an organization.As teamwork spreads from one department to the next,interrelations, communications, and understandingstrengthens the organization at all levels. When all thepeople of an organization become focused on a commongoal, a cooperative climate develops where problems andcauses are identified through teamwork.

    The company's quality team organization is thestructure for teamwork. Quality teams provide the

    12Walton, p. 84.13Masaaki Imai, KAIZEN The Kev to Japan's CompetitiveSuccess . (New York: Random House Business Division,1986) , p. 58.

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    OWNER

    INPUT

    PROCESS

    IDEATINITIALSCOPING

    OUTPUT OWNER REQUIREMENT

    DESIGNPHASE

    CONSTRUCTOR

    INPUT

    PROCESS

    I OUTPUT

    PLANS & SPECSTCONSTRUCTION

    PHASET

    FACILITYTSTART-UP

    FEEDBACK

    INPUT

    PROCESS

    OUTPUT I

    A/E

    INPUT

    PROCESS

    OUTPU r

    OWNER

    INPUT-OUTPUT DIAGRAMFigure 1-2 Juran's Triple Role Concept Applied toConstruction Process

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    customer to a processor, and processes the plans andspecifications (output) . The Constructor, can thentransform the input (plans and specifications) into acomplete facility (output) that meets the Owner's(customer) requirements.

    In each process, one must be aware of the needs ofboth external customers, and internal customers.External customers are external to the company; whereas,internal customers are within the company. Everyoneinvovled in the process needs to understand theircustomer's requirements, and know how their work affectsothers, and how others affect their work. Theperformance of the "suppliers" involved in theconstruction process, including owners, designers,constructors, vendors and labor force, depends not onlyon their own skills and desires to work, but also on howwell they understand their internal and externalcustomer's needs.

    A recent Construction Industry Institute studydetermined that the cost of quality deviations on nineindustrial projects averaged twelve percent of installedproject cost 15 . Deviations occur when the work product15 "Measuring the Costs of Quality in Design andConstruction", Construction Industry Institute ,Publication 10-2, (May 1989) p. 1.

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    fails to meet the requirements. Owners, designers,constructors, vendors and labor force should realize thatthey share a mutual win-win incentive for joining effortsand commitment to reduce the cost of project deviations.As demonstrated in the Deming Chain Reaction, commitmentto quality improvement in construction will lead todecreases in construction cost, increases in productivityand profit margins, benefits to humankind in terms ofbetter facilities, and more jobs through investment ofsavings toward future projects. In short, everybodywins1.1.7. PROCESS MEASUREMENT AND ANALYSIS

    Before we can improve the quality of any process, wemust have a method of measuring current performance. Aprocess is the series of actions, methods and proceduresdirected to the achievement of a goal. Measurement ofprocess performance will enable us to base decisionsabout the process on solid data rather than hunches. Thesystem of measurement should consist of a unit ofmeasurement and a sensor16 .

    The unit of measurement is a defined amount of somequality feature that both expresses the customers needs,and permits evaluation of the process. The sensor16Juran, p. 7

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    provides the method for collecting the data in terms ofthe unit of measure. Quality features are measured toprovide a basis for improvement, not to provide a basisfor pointing fingers and finding fault.

    The TQM problem solving process uses fundamentalstatistical methods as a tool to interpret and controlthe current performance of a measured process. Throughproperly interpreted statistical data, a manager canbegin to pinpoint the causes of problems. With anunderstaning of problem causes, the manager can controlthe amount of variance in the process, and implementimprovements

    Each construction project is a unique , dynami cprocess typically spanning over several years; whereby,ideas are transformed into a facility when the workaccomplished in sequenced phases (Scoping, Design,Procurement, Construction, and Start-up) is supplied tothe next phase. It is well accepted that the decisionsmade in the early scoping and design phases have thegreatest influence on project cost and success as awhole17 . Consequently, TQM efforts to measure and improve

    17 "Input Variables Impacting Design Effectiveness",Constrution Industry Institute , Publication 8-2, Jul1987, p. 2.

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    the performance of these early phases will have thegreatest potential rewards, and must be done.

    However, some errors, omissions and mistakes inscoping and design phases are often times not discovereduntil several months or years later in the projectprocess, during the construction and start-up phases.When we measure the performance of latter project phases,we are measuring all phases of a project both early andlatter. The scoping and design constraints found duringconstruction and start-up phases should be feed back tothe suppliers of these inputs for future improvements.Unfortunately, due to the unique, sequenced nature of theproject process, these improvements will generally cometo late to improve the current project. Theseimprovements, however, can be maintained to improve theoverall performance of future projects that the Owner,Designer and Constructor undertakes. The dynamic natureof the construction process reinforces the need forcustomer and supplier interaction, process measurementand continuous improvement. Chapter Two and Four presenta system for measuring and statistically examining theperformance of on-site construction activities/processesas a basis for continuous project quality andproductivity improvement.

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    1.1.8. CONTINUOUS IMPROVEMENTTQM is a customer driven strategy based on continuous

    improvement in performance measured in terms of quality,cost, and schedule. Constant improvement occurs whenmanagement takes steps to - (1) maintain andincrementally improve current procedures and methodsthrough process control oriented thinking, and (2)support major innovations with sufficient time, energyand money. A manager satisfied with the current statusquo is sure to fall behind the competition.

    The key to achieving incremental improvements isprocess control and improvement. Each on-siteconstruction activity is a distinct process with definedprocedures for the management of construction inputs(people, skills, materials, tools, equipment,information, place and energy) , and with definedconstruction methods for transforming the inputs into anoutput that meets the project plans and specifications(requirements) . Figure 1-3 shows the Triple Role/Input-Output diagram for on-site construction activities.Field Management is the customer of the activities unitsof work in place, and the Labor Force is the customer ofthe construction inputs.

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    Continual improvement in the quality of on-siteconstruction activity procedures and methods aimed atbetter satisfaction of the customer at the next stagewill result in less rework, fewer delays and mistakes,and better use of construction inputs. Consequently,constant improvement in the quality of the constructionactivity process leads to decreased cost of quality andincreased productivity. Quality in construction isassociated not only with the materials and final product,but also with the way people work, the way tools andequipment are operated, and the way systems andprocedures are dealt with.

    Improvements in quality will lead to increasedproductivity, the only question is where to begin theimprovements. Solving today's crisis only to fight asimilar battle tomorrow, or eliminating an irritant isnot improving the process; it is simply putting outfires. Only through process-oriented thinking andstatistical analysis can we begin to understand the truecauses of problems. When we understand the nature of thecauses, we can expend effort to improve the process.

    Process-oriented thinking is achieved in constructionwhen- (1) we place as much emphasis on the process of theconstruction activity as we do on the results, and (2)

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    when we learn to recognize the difference between thesymptoms and the causes of problems. The constructionindustry is results oriented. All too often, contractorsbid projects based on estimates, measure the differencebetween the estimated and actual cost, and if a negativebalance (symptom) exits, we attempt to justify ourmismanagement on hunches. Rarely do we invoke process-oriented thinking to search for the real causes of theproblems that lie within the process.

    1.2. DEMING/SHEWHART PDCA CYCLE

    The Deming/Shewhart Plan-Do-Check-Act (PDCA) Cycle 18shown in Figure 1-4 is an essential tool for achievingprocess improvements, and ensuring that the benefits ofimprovements last. The "Plan" is a complete study of thecurrent situation, during which- (1) data is gathered,(2) problems are analyzed using statistical methods, (3)causes are identified, and (4) solutions are planned.The "Do" is the implementation of the planned improvementon a pilot scale. The "Check" is the verification andconfirmation that the plan achieved the desiredimprovement without adverse side effects. The "Act"

    18Deming, p. 88

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    proposed solution becomes a standard20 to prevent arecurrence of the problem.

    PDCA CYCLE

    PLAN

    WHAT DATA GATHERING &H DEFINITION OF PROBLEMANALYSIS OF PROBLEM

    WHY IDENTIFICATION OF CAUSESHOW PLANNING SOLUTION

    DO IMPLEMENTATION

    CHECK VERIFY RESULTS

    ACT STANDARDIZATION

    Figure 1-5 Standardization of ImprovementThe remainder of this report describes how to apply

    the PDCA Cycle to improve the quality and productivity ofon-site construction activities.

    20Imai, p. 7 6

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    2. CHAPTER 2PLAN

    2.1. PEOPLE AND PDCA FOR PRODUCTIVITY IMPROVEMENT

    Successful on-site construction productivity-improvement programs embody the blending of "people" and"techniques." TQM philosophies presented in Chapter Oneare the basis of the "people" side of a productivityimprovement program. The "people" aspects of TQM createan environment where commitment to improvement andteamwork thrives. Remember, this commitment can only begenerated after top management successfully demonstratesa sincere concern for people at all levels, and removesthe barriers that create adverse relations so common intoday's construction climate. The "techniques" side ofproductivity improvement is based on a plan-of-action forthe implementation of a step-by-step procedure to achieveimprovement. The Deming/Shewhart Plan-Do-Check-Act(PDCA) Cycle provides a plan-of-action for achievingproductivity improvements in on-site constructionactivities

    Improvements are sought, found and implementedthrough the PDCA problem-solving process. The stepsincluded in the "Plan" phase of the PDCA Cycle include

    21

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    supervisors often fear the possible repercussions offorwarding bad news to upper level management.

    Formal assessment methods most frequently used by-construction managers are schedule and cost controlreports. These formal assessment methods providemanagement with an opportunity to improve productivitythrough the application of the PDCA process mentionedearlier. Unfortunately, as pressure from a late scheduleor budget overrun builds, management will often useschedule and cost control information to judge theperformance of the labor force and field supervision.Instead of using this information for improvement,management may blame field supervisors for poorperformance, and hold them accountable for alldeficiencies in the construction process. This isunfair, as many of these cost and schedule deficienciesare due to failures in the "system" for administrativeproject support. Delays or inadequacies in schedules,and tools, materials, equipment and informationconstraints lead to low levels of productivity and poormorale. Since field managers have very little controlover administrative support functions that adverselyaffect their productivity, they will resent managementfor using cost control information for deciding

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    performance. To stay clear of management's pressures,field managers will often report less than accurateinformation. Altering of cost and work completed figuresfor accounts that are in trouble may be the only methodfield supervisors have for saving themselves from anunjust punishment.

    A cost control system incorrectly used may deceiverather that inform management, and lead to conflicts,less-efficient operations and strained relationshipsamong project personnel 2 . Current formal assessmentmethods are results oriented rather than processoriented. They may alert management when the project isbehind schedule or over cost, but schedule and costreports seldom provide management with hard data topinpoint the causes of the deficiencies in the process.2.2.2. PROCESS ORIENTED FEEDBACK

    Before we can improve the quality and productivity ofon-site construction activities, we must look for adifferent way of measuring the performance of theactivity process . As shown in Chapter One, this systemmust provide a "unit of measure" and a "sensor." Also,the unit of measure should provide a standard forperformance that expresses the customer's needs and20glesby, p 33

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    2.3. PRODUCTIVITY MEASUREMENT TECHNIQUES

    2.3.1. ACTIVITY UNIT RATESSince the major cost variable on a construction

    project is labor productivity, a contractor will want tomeasure work-hours and quantity of work in place as amajor element of a cost control program3 . Laborproductivity, also called activity "unit rate, " is "work-hours performed per units of work completed. 4 Thedividing of work-hour information collected from daily orweekly time cards by the units of work accomplished for agiven construction activity enables management toevaluate the efficiency of an activity. Activity unitrates are typically reported in daily, weekly or monthlyperiods2.3.2. LOST TIME AND CREW TRUE UNIT RATES

    Activity unit rates may contain the efforts of morethan one crew, and contain all work-hours including thoselost due to delays. As such, it is difficult to fixresponsibility when unit rate figures are less productivethan planned. Unit rates should be calculated for each

    3 "Project Control For Construction", ConstructionIndustry Institute , Publication 6-5, (Sep 1987), pp. 6-7.4,1 Productivity Measurement: An Introduction",Construction Industry Institute . Publication 2-3, (Oct1990) , p. 2.

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    separate crew, and lost-time hours excluded from the unitrate calculation. Otherwise, the productivity of anindividual foreman will suffer due to performance anddelays beyond his control. By explicitly counting lost-time hours separate from work-time hours, contractorsfinally have the means of collecting data that pointsdirectly to methods that will improve constructionproductivity5 . Measurement of lost-time hours willenable management to identify problems in the system andprocedures for administrative support of constructionactivities, and set priorities for corrective action.

    Crew "true" unit rates, (calculated by dividing theactual man-hours worked by the units of workaccomplished) , provide a true measure of crew andconstruction method performance. The separation ofactual work-time from lost-time allows a contractor toplace responsibility, not blame where it belongs.Management must accept responsibility for time lost onthe job due to "system" administrative support delays.Similarly, foremen must accept responsibility for theircrew's true unit rate 6 .

    5Louis Edward Alfeld, Construction Productivity . (NewYork: McGraw-Hill Inc., 1988), p. 65.6 Ibid. , p. 66.

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    complete, and foremen may object to the added paperworkburden. Formen must be convinced that this informationwill be used to help solve their problems rather than beheld against them.2.4.2. PROBLEM DEFINITION

    The modified time card provides for much greateraccuracy and detail in reporting, and allows managementto pinpoint and define the major sources of delayproblems. System procedures for support of constructionactivities, are the main causes of delay problems. Whenproperly applied, lost time reports will help foremen byfocusing top management attention on constraint problemsthat prevent his crew from being productive.

    True unit rates can be measured for any activity. Ifcomparisons are to be made with the project's estimate,then the activity should be consistent with the workbreakdown structure or code of accounts of the projectestimate 8 . Also, the units of measure used for reportingquantities completed should be consistent with the unitsused in developing the activity estimate. To ease thereporting process, these units should be simple, easy toidentify and accurate. To be accurate, the level of

    5CII, Publication 2-3, p. 6

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    effort to complete a unit of work in place must beconstant through the entire duration of the activity.

    TIME CARD ACTIVITY CODEForeman:

    Total

    Crew Number:Date:

    Employee Name

    Total Work Hours/Activity Code(-) Lost-Time Hours

    10 Rework Design Error11 Rework Change Order20 Wait for Materials21Wait for Information22 Wait for Tools23 Wait for Equipment30 Other

    (-)

    Work-Time HoursFigure 2-1 Foremen Time Card With Lost Time

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    2.5. PROBLEM ANALYSIS AND IDENTIFICATION OF CAUSES2.5.1. ANALYSIS OF PROBLEM THROUGH STATISTICAL REPORTS

    Data gathered from the foreman's time cards andquantities completed reports are compiled daily or weeklyto generate statisticl feedback reports. The generationand use of effective feedback reports sets the stage foridentification of problem causes and corrective action.Feedback reports can take many forms, but they should beeasy to interpret, timely, accurate and appropriate forthe level of management intended. Figures 2-2 through 2-6 are sample statistical Pareto and Line Graph Charts.2.5.2. IDENTIFICATION CAUSES

    Lost time is a measure of managements effectiveness.The Lost Time Pareto Chart shown in Figure 2-2 pinpointsthe source of problems in the project's system andprocedures for administrative support. At a glance,everyone can see that the two or three largest bars shownin Figure 2-2 account for the majority of the Lost Time.This follows the Pareto Principle, which is thephenomenon whereby, in any population of factors thatcontribute to a common effect, a relative few of thecontributors account for the bulk of the effect 9 .

    9Juran, p. 331

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    REIORKDESIGNERROR

    WAIT TORINFO

    IATTFORTOOLS

    TATTFOREQUIPMENT

    j 10CX-- 90S

    BOX- 70X

    L-- BOX

    S-- 50X T- 40X T- 30X J- 20X E-- 10X4- ox

    Figure 2-2 Weekly Lost Time Pareto Chart (BeforeImprovement)

    500 T450

    J 400ST 350 4T 300 -IM250 4E200 --B15

    R 100 --

    50 -

    REIORKCHANCEORDER

    J LOST TIME HOURS- CUMMUIATIVE X LT

    IAITFOBMATERIALS

    SETOREDE3GNERROR

    fAITrORwro

    fATT FORTOOLS

    WATT FOREQUIPMENT

    -- 100%,

    -- BOX L

    S-- BOX T

    T- 40X jM

    20X

    OX

    Figure 2-3 Weekly Lost Time Pareto Chart (AfterImprovement

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    The value of a Pareto Chart is that it indicates the"vital few" Lost Time factors that are most prevalent,and therefore deserve concentrated efforts forimprovement 10 . The Lost Time Pareto Chart is very usefulin drawing the cooperation of all concerned, andestablishes a priority for corrective action. Experiencehas shown that it is easier to reduce a tall bar by halfthan a short bar to zero 11 . Figure 2-3 shows thepotential for reduction of Lost Time if Field Managementtakes concentrated corrective action to reduce by halfthe bars for both rework due to change orders and waitingfor materials. Removing administrative supportconstraints improves the construction activity process,and improves the productivity and morale of the workforce.

    10Kaoru Ishikawa, Guide to Quality Control . (2d ed; NewYork: Asian Productivity Organization, 1982), p. 45.n Ibid.

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    TRUE UNIT RATE LINE GRAPH

    Figure 2-4 Line Graph Chart of Daily Crew True Unit RateProductivity

    0.5 4o

    l

    TRUE UNIT RATE LINE GRAPH

    TRUE UNIT RATE5 DAY UNIT RATE MOVINGAVERAGE

    DECLINING PRODUCTIVITYTREND

    f8

    DAY10 12 13 14

    H15

    Figure 2-5 Line Graph Chart of Five Day Moving AverageProductivity

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    1 -0.5

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    TRUE UNIT RATE LINE GRAPH

    SOLVED CAUSE OF PROHLQI

    IMPROVED PROCESS- 5 DAY UNIT RATE MOVINGAVERAGE

    + -t- -l- -i- -f- -f- +10 11 12 13 14 15 16 17 IB 19 20DAY

    Figure 2-6 Line Graph Chart of Five Day MovingAverage Productivity (After Improvement of MethodProcess)

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    Moving average line graphs enable the Foreman to seethe "trends" in his crew's true unit rate productivity.The value of trend data is that it enables the Foreman topredict the crew's productivity, and implement correctiveaction when the trends show a need for improvement.Thus, corrective action measures can be taken before itis too late. By understanding the relationships shown intrends, the Foreman can analyze the outcomes of changesimplemented in activity methods. Changes in activitymethods and procedures that produce positive results canbe standardized, and changes that are ineffective can beidentified, and eliminated.

    For example, an alert foreman who studies Figure 2-5can easily see from the Five Day Moving Average that hiscrew's productivity is progressively declining. He canstudy the Daily True Unit Rate curve to pinpoint the dayswhere productivity was poor and good, and find thefactors that caused the fluctuation. Once he understandsthe causes of productivity variance, he can work to altercrew methods to improve productivity. Figure 2-6 showsthe potential improvements in crew productivity with theidentification and elimination of productivity variance.This report will require extra effort by the foreman, but

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    The Executive Steering Committee establishes thepriorities for major corrective action and improvementefforts that are in line with the company's overallgoals. The Pareto principle discussed in section 2.5.2enables management at each level to focus attention andefforts on the biggest and most important problems first,then the next and so on.PROJECT TEAMS AND TASK TEAMS

    Implementation of prioritized corrective action andimprovement efforts is carried out through the use of thePDCA cycle at each level within the constructioncompany's organization. The scope of the implementationplans become more specific with each descending level inthe organizational hierarchy. The greatest benefit ofthe team approach is the major gains in quality andproductivity that result from the pooling the skills,talent, support, and ideas of a group to solve problems 14 .A properly supported and trained team can efficientlytackle complex problems, and come up with effective andpermanent solutions because the members of the team areclosest to the problems. Consequently, project teams andtask teams provide the greatest potential for improvement

    14 Peter R. Scholtes, The Team Handbook . (Madison, WIJoiner Associates Inc., 1988), p. 2-7.

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    of a specific project's on-site constructionproductivity.

    The project team can use Lost Time data collected todefine and analyzed problems in the project's system.The Lost Time Pareto Chart shown in Figure 2-2 can beused to establish priorities for corrective action. TheProject Team can then commission a task team to addressspecific system problems through the implementation ofthe PDCA problem solving cycle. Similarly, the projectteam should identify critical labor-intensiveconstruction activities for True Unit Rate productivitymeasurement and analysis. The greatest return on theinvestment of time and effort to measure and analyze on-site activity processes through the statistical LineGraph and Control Chart techniques presented in thisreport come from the selection of long durationactivities that are: (1) very repetitive and have a shortcycle time, (2) performed by small crews, and (3)performed on many projects that the construction companyhandles. Almost without exception, the most significantwork-hour activities also will be significant schedule-duration activities 15 . The proper selection of activitiesfor process analysis allows sufficient time for the15CII Publication 2-3, p. 6.

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    statistical techniques to pinpoint opportunities forimprovement, and allows improvements to be implementedand refined on future projects. Once the project teamselects an activity for process (productivity) analysis,the team should commission a task team to address thespecific activity.

    The job of task teams should be carefully explained,and their completion time specified16 . Membership on taskteams is assigned, and should cut across projectorganizational lines both horizontally and vertically toensure that talents and knowledge required to solve thespecific problem is present. Task teams can then useexisting data and apply the PDCA problem solving processto develop and implement solutions and improvements toboth the project's system and specific activityprocesses. The following are the elements of successfulteams 17 :

    (1) Management support: Project Team providesguidance through clearly defined team missionstatement, secures resources and clears a path fortask team.

    (2) Member participation: Establish ground rulesto encouraged full participation. Trained16Philip B. Crosby, Quality is Free . (New York: Mentor,1979), p. 192.17Scholtes, pp. 2-39 -3-19.

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    facilitator helps to keep the team on track. Teamleader, facilitator and members fully understandtheir roles.

    (3) Group training: Facilitator providesinstruction in both humanistic (communications,group behaviors and decision procedures) andtechnical problem solving techniques (datacollection, problem analysis, and solutiondevelopment and implementation)

    (4) Teamwork: Team members appointed to team workclosely with the problem/process under study.Ideally, each area and level of employees affectedby the problem/ improvements should be represented.Members should contribute their knowledge,expertise and participation at all meetings.Every team member can and should make acontribution to the project, and no one membershould be allowed to dominate the discussions.

    (5) Problem Solving Approach: Team uses a wellthought out PDCA improvement plan, along withgroup decision making, and basic statisticalproblem solving techniques to:- identify root-causes based on data- plan permanent solutions- implement solutions on small scale- verify results- standardize successes- refine improvement through next PDCA cycle

    PLANNING SOLUTIONSAfter a task team finds root-causes to problems, the

    team should then brainstorm alternative solutions. Thealternatives should be evaluated based on feasibility ofimplementation. Feasibility analysis should address thefollowing questions:

    - Is the solution easy to introduce, implement,and maintain?

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    - What are the possible disadvantages, weaknessesor negative consequences?- Anticipated resistance to solution?- Will organizational culture support solution?Skills, training and education required toimplement solution?- Resources required (money, people equipment,tools, and materials) to implement training andsolution?- How will change effect other processes?

    The overall best solution should be selected and itsimplementation planned. Success will depend on how wellthe task team anticipated the resources needed to carry-out the changes, how much training and preparationeveryone receives, whether key leaders lend theirsupport, and whether the cultural environment is readyfor the change 18 .

    18Scholtes, p. 5-45

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    3. CHAPTER 3DO

    The successful implementation of a planned solutionrequires three primary elements: (1) management support,(2) worker support, and (3) education and training. Itis always best for a task team to carry out a small-scaleor pilot study of the proposed change before making itwide-spread. Upon verification (check) that the changeproduced the desired results, the task team can then actto secure the three primary elements required toimplement the change on a full scale basis.

    Effective documentation and communication ofsuccesses with pilot programs is essential to winning thesupport of management and those affected by the change.Construction companies should have an establishedprocedure for the review, approval, and implementation oftask team solutions. The task team facilitator shouldassist the task team in developing a presentation to winproject team support for the implementation andstandardization of the solution on a project-wide basis.Improvements that prove to be successful on a project-wide basis and can be applied on a company-wide scaleshould then be reviewed by the company Executive SteeringCommittee.

    45

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    Winning the support and participation of the workforce involves communication and training. Teamsimplementing changes need to be aware of whom will beaffected by the change, what jobs may be changed, and howpeople will be trained and qualified. People arenaturally resistant to changes. This is why topmanagement commitment and effective communication of thefundamental TQM elements described in Chapter One is thekey step toward creating an environment whereimprovements are sought and welcomed. Qualityimprovement has no chance unless the individuals involvedare ready to recognize that improvement is necessary 1 .Task teams must know and understand the ideas, questions,doubts, and fears of those impacted by the change.Keeping employees informed, and listening to their inputsis key to gaining their support and participation.

    Upon successfully gaining the support andparticipation for the change, the people who are going tobe affected by the new standards must be educated. Asuperior must educate his subordinate on a one-to-onebasis through the actual work. Once the subordinate iseducated in this manner, the supervisor should delegate

    1 Phi lip B. Crosby, Quality is Free . (New York: Mentor,1979), p. 81.

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    authority to him and let him have the freedom to do hisjob. In this way, management creates a situation inwhich everyone is well-trained, can be trusted, and neednot be supervised excessively2 .

    If everything is done according to the methodsexplained above, implementation should pose no problem.However, the team implementing the solution must be awareof changing conditions, and verify (check) that thesolution continues to produce the desired results.

    2Kaoru Ishikawa, What is Total Quality Control? .(Englewood Cliffs, N. J. : Prentice-Hall Inc., 1985), p.65.

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    4. CHAPTER 4CHECK

    4.1. PURPOSEAll too often, Field Management implements plans and

    changes to the construction process without adequately-checking to verify that the desired results are beingachieved. Before one can check to verify that a changein procedures or methods produced the desired qualityfeatures, the required objectives, goals, and standardsmust all be clearly understood. In the case of on-siteconstruction activity productivity, the desired qualityfeature is to achieve the planned production rate withinthe planned quality, cost, and schedule. This Chapterpresents a technique for answering the question -"whatand how should Field Management check existing activityprocesses?"

    Checking to verify that a planned and implementedprocess is meeting desired goals requires collection andanalysis of process oriented data. As shown in ChapterTwo, True Unit Rates and Lost Time provide feedback dataon the performance of construction activity processes.What we must understand is that the performance of any

    48

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    process is affected by an unlimited number of causes 1 .As seen in Figure 2-4, a single crew's True Unite Rateproductivity will be dispersed from day to day. In otherwords, there will always be variability in the activityproductivity due to causes affecting the process. Thisvariability can be expressed by a statisticaldistribution. When we check therefore, we must be guidedby the idea of distribution. The most convenient toolfor the check purpose is the three sigma control chartinvented by Dr. W. A. Shewhart 2 .

    A control chart sends statistical signals, whichdetect the existence of a special cause of processvariation, or tell us that the observed variation is dueto the fault of the system3 . The system in whichconstruction activities are carried out includes: (1)management styles, policies, and procedures foradministrative support, (2) people (experience, skills,and motivation), (3) Safety considerations (4) weatherconsiderations, and (5) customer and public relations.Special Causes are those that are outside the system, and1Kaoru Ishikawa, What is Total Quality Control? ,(Englewood Cliffs, N.J.: Prentice-Hall Inc., 1985), p.204.2Ibid.3W. Edwards Deming, Out of the Crisis (MassachusettsInstitute of Technology Center for Advanced EngineeringStudy, Cambridge, Mass, 1986), p. 310.

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    can be attributed to a specific group of workers,specific machine, or to a specific local condition.Causes of variation that are the fault of the system arecalled common causes. Discovery and control of a specialcause of activity productivity variation is theresponsibility of the Foremen, and continuous reductionof common causes of variation is the responsibility ofthe superintendent.

    A stable process is one with no indication of specialcauses of variation, and is said to be in statisticalcontrol 4 . A construction activity process that is instatistical control can produce a predictable quantity ofwork in place at a predictable quality, cost, andschedule. In other words, management can confirm thecapability of the activity process. A process that is incontrol also provides a basis for improvement throughcontinuous reduction of variation.

    Control charts commonly used in manufacturingprocesses are the Mean-Range ( - R) control charts andthe moving Mean-Range ( - R) control charts. The moving - R control chart is used by many organizationsinvolved in continuous batch processes; such as,manufacturing of steel, aluminum, paints and chemicals.4Deming, p. 321

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    Detailed construction activities that are broken down andmeasured by a single construction product; such as,linear feet of pipe, or cubic yards of concrete placedand finished, may be thought of as batch processes. Atthe end of each day, the units (single constructionproduct) of work in place can be measured for a detailedactivity, and the True Unit Rate in hours/unitcalculated. The remainder of this chapter describes amethod of using moving - R control charts to check theproductivity performance of detailed on-site constructionactivities

    4.2. MOVING MEAN-RANGE CONTROL CHARTS4.2.1. CHART CONSTRUCTION

    Two measures of a process are critical: its position(mean) and its variability (range) 5 . The control chartshown in Figure 4-1 provides a graph of the true unitrate productivity moving mean () and range (R) withcontrol limit lines. The mean portion of the chart showsany changes in the mean value of the activityproductivity, while the range portion shows any changesin the dispersion of the activity productivity. Range isa practical measure of process variation6 .5Mal Owen, SPC and Continuous Improvement , (Bedford, UK:IFS Publications, 1989), p. 103.

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    Process Control Chart (Moving Mean/Range) Dates FormanActivity DescriptionMeanJ 2 UCL; lcl:

    /< UCL-fo i f? v l yCD J5 2

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    The Limit lines indicate the statistical dispersionof data, and show if special causes (abnormal situation)exist 7 . There are three kinds of Limit Lines: the UpperControl Limit (UCL) , the Central Line (~ or ^) , and theLower Control Limit (LCL) . The guidelines for theconstruction of control limits are based on theproperties of the normal distribution curve shown inFigure 4-2. The wider the base of the distributioncurve, the larger the variability, and the larger thestandard deviation (s or o )

    I//j\& >l

    6SJ6K5 ; 5 1

    9S4TS99 73%

    Figure 4-2 Normal Distribution Curve

    7Kaoru Ishikawa, Guide to Quality Control . (2d ed; NewYork: Asian Productivity Organization, 1982), p. 62.

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    The calculated five day moving mean for day 5 is(2.5+2.9+2.6+3.5+2.9) /5 = 2.9 hours/unit. For eachsuccessive day, the first of the previous group isdropped, and the next in sequence is added. The trueunit rate moving mean for the next five days is(2.9+2.6+3.5+2.9+3.2) /5 =3.0. Hours/unit, and so on. Themoving true unit rate means are then plotted.

    The moving range also is determined based on groupsof five. Range = x (Largest) - x (Smallest) for thesample size (group) of five days. The True Unit RateRange for day 5 is (3.5 - 2.5) = 1.0. The Range for thenext day is (3.5 - 2.6) = 0.9, and so on. The movingRange values are then plotted.4.2.2. CONTROL LIMITS

    The central line for the moving graph is called thegrand mean (~) . The grand mean is obtained as:

    = ~t~ , where k is the number of samples.Therefore:52.9~ = 2.6 = 3.30 hours/unit.

    The central line for the moving range graph isRobtained by: = T~ Therefore:

    18.7R " 16 "

    1 - 17 -

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    The UCL and LCL lines are calculated through therelationship involving A2 and ^. This relationship issuch that 3 standard deviations (a) of ~ = &2r' where A2is a constant that depends on the sample size n 9 .Therefore:

    UCLx = x + A2rLCLx = x - A2rUCLR= D4r-LCLr= D37T; where D3 and D4 are also constants based

    on the sample size n. Values for A2, 03, and D4 can befound in any statistics book, and are also shown in Table4-1 10 . For sample sizes less than 7, D3 does not apply;therefore, there is no LCL.

    n A2 D4 D 32 1.880 3.267 _3 1.023 2.5754 0.729 2.2825 0.577 2.1156 0.483 2.0047 0.419 1.924 0.076

    Table 4-1Standard Statistic Constants

    9Owen, p. 111.10Ishikawa, Guide to Quality Control , p. 68

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    responsible for the operation investigate the abnormalityquickly before the trail grows cold12 . The Moving TrueUnit Rate - R control chart in Figure 4-1 shows thattwo points are abnormal because they lie outside thecontrol limits. The low productivity ( ) value of 4.0for day 13 is the mean True Unit Rate for days 9-13,while the high productivity value ( ) of 2.4 on day 2 isthe mean True Unit Rate for days 16-20. Therefore, whenthe Foreman searches for the cause of the abnormalvariance, he must look at potential special causes thataffected productivity during the five day period.Special causes that lead to low productivity should beeliminated, while special causes that lead to highproductivity should be standardized.

    Continued identification and removal of specialcauses will eventually result in an activity process thatis in statistical control. However, simply because theactivity is in control, does not assure that theresulting central line is in proper position (i.e., at orabove the planned unit rate productivity) . If theprocess grand mean (~) is below the desired productivity,the Foreman and Field Management should work together to

    12Deming, p. 319

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    implement changes to the activity methods. Improvementin activity methods can be achieved by: (1) eliminationof operation steps, (2) combination of operations, and(3) reduction in operations. Take care during thisadjustment to ensure that the changes do not send theprocess out of control.

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    5. CHAPTER 5ACT

    1. STEPS TO ON-SITE PRODUCTIVITY IMPROVEMENT5.1.1. INTRODUCTION

    The Act process of the PDCA cycle involves fourdistinct steps: (1) methods improvement through reductionof inefficient operations, (2) corrective action toeliminate special causes of process variation, (3)standardization of solutions to prevent recurrence ofproblems and achieve process control, and (4) continuousimprovement of the process. The first three steps areexecuted by the team studying the process in the orderpresented. Upon successful completion of each activity,the team applies another rotation of the PDCA cycle toconstantly reach new heights in productivity improvement.As will be presented in the latter part of this chapter,continuous improvement of on-site construction activityprocesses requires the combined efforts of everyoneassociated with the project. The successful applicationof these four steps will achieve both immediate andpermanent productivity improvements.

    62

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    5.1.2. REDUCTION OF INEFFICIENT OPERATIONSThe first step that the activity task team should

    take is the reduction of inefficient operations. Theobjective of this step is to eliminate, combine, orreduce unnecessary steps in the activity process. Inother words, work smarter not harder. Traditionalproductivity methods improvement techniques; such as,5-minute rating, process charts, flow diagrams, and crewbalance charts should be used to help identify steps thatare obviously inefficient. It is beyond the scope ofthis report to present these four techniques in theirentirety; however, this topic is thoroughly presented in"Productivity Improvement in Construction" by Oglesby,Parker and Howell 1 . Each of these techniques can beapplied quickly to help the team define, communicate andimprove the current process. The team must take care notto get stuck on this step. The goal is to use atraditional improvement technique to make immediateimprovements in the process by simply reducing the mostobvious sources of waste and constraints. The teamshould then implement the improvements (eliminate,combine, or reduce operation steps) , and then measure the1Clarkson H. Oglesby, Henry W. Parker, and Gregory A.Howell, Productivity Improvement in Construction , (NewYork: McGraw-Hill Inc., 1989), pp. 171-239.

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    results to verify the success of the solution. The teamhas now reduced waste, improved productivity, and mostimportantly, defined the improved process. Furtherrefinements can be made when the activity process isunder a process analysis study.5.1.3. CORRECTIVE ACTION

    We apply corrective action to eliminate specialcauses of process variation at the source of theproblems. Chapter Four presented a method of analyzingan activity process through Moving Mean/Range ControlCharts to measure and detect the occurrence of specialcauses. Upon detection of a special cause, the teamresponsible for analyzing the process must again applythe PDCA cycle and plan a solution. The team should thenimplement the solution on a small scale, and verify theresults. Continual identification and removal of specialcauses of variation will eventually produce an activityprocess that is in a state of statistical control (i.e.,no special causes exist). Once corrective actionsolutions have been checked as successful, action istaken to prevent recurrence of the problems bystandardizing the improvement on an activity-wide basis.

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    5.1.4. STANDARDIZATIONAs mentioned in Chapter Three, the standardization of

    a change on a wide-spread basis requires the support ofboth management and workers, and training and education.Solutions that improve the productivity of an activity-process should be standardized for all crews working onthat activity. Because of the fast pace of constructionactivities, this action step should be taken as quicklyas possible. To reap the full potential of improvements,successful activity procedures should be sufficientlydocumented and publicized for use on future projects.Crews tasked with completing an activity similar to onepreviously studied and documented should be encouraged toimplement the most improved activity process, and bechallenged to develop further refinements 2 . The use ofpreviously documented activity procedures works best ifthe construction company has an effective pre-planningprogram3 to outline the procedures for on-site activityoperations.

    2Peter R. Scholtes, The Team Handbook . (Madison, WIJoiner Associates Inc., 1988), p. 5-57.30glesby, p. 119.

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    construction activity processes due to the reduction incommon cause variation (administrative supportconstraints) can be tracked through process controlcharts, as shown in Figure 5-2. More often than not,root-causes of common cause problems can be linked to themanagement of the construction inputs at the beginning ofthe on-site construction activity process (see Figure 1-3). Removal of common causes due to the system is theresponsibility of management. Again, the Lost TimePareto Charts shown in Chapter Two can effectively focusmanagement's attention to the "vital few" factors thatpresent the greatest potential for improvement. Othertraditional methods of gathering and analyzing data; suchas, Formen Delay Surveys and work sampling 9 also may beused to fine causes of constraint problems. Althoughthese techniques may provide faster data, the accuracy ofLost Time Data is difficult exceed.

    A task team should be commissioned to develop andimplement improvements to each project administrativesupport process that the project team identifies as apriority area for improvement. The individual worker cando nothing about common causes due to administrativesupport processes; however, he can often contribute to90glesby, pp. 156-180

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    and guidelines for research and development that dealswith the issues that will enable the industry to betterserve consumer groups and provide a competitive edge.Presently, support for research and development in theUnited States' construction industry is minimal incontrast to the amount of support that Japanese

    engineering and construction firms dedicate to in-houseresearch efforts 11 . The potential effect of innovation onconstruction activity processes is shown in Figure 5-3.

    A3CO

    >~

    ooc

    ilint_oX

    UCL

    1(

    UCL

    /v ^y\LCL

    \v^/^V^-

    Af LCLter Innovative ImprovementTime

    Figure 5-3 Effect of Innovation on Productivity

    lln Quality Management Organizations and techniques"Consturction Industry Institute , Source Document 51, (Aug1989), pp. 64-68.

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    defined procedures for the management of constructioninputs, and with defined construction methods fortransforming the inputs into a facility that meetscontract requirements. The Deming/Shewhart Plan-Do-Check-Act Cycle provides a systematic method forachieving and sustaining process improvements.

    The essential first step in the PDCA Cycle is themeasurement and analysis of process performance data as abasis for identifying areas for improvement. ProjectLost Time and Crew True Unit Rate data enables theproject team and task teams to identify the causes ofproblems impacting the construction process.

    Separating lost-time hours from work-time hours,allows top management and field supervisors to pinpointand address problems in both the system of administrativesupport procedures and construction methods.Management's acceptance of responsibility for lost time,and the field supervisor's acceptance of responsibilityfor crew true unit rates allows the project organizationto focus attention on improvements based on firm data.Implementation of the PDCA cycle using Lost Time and TrueUnit Rate data provides an effective method of method fordiscovering causes of problems and implementing solutionsat all levels within the construction organization.

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    6.2. RECOMMENDATIONS

    Based on findings from this literature review, thefollowing recommendations are offered for considerationby the construction industry:

    1. Significant performance improvement can be achievedby focusing attention on the process ofconstruction with the aim of better meeting thecustomer's needs.

    2. TQM requires the support of all parties involved inthe construction process.

    3. The TQM approach must meet the specific needs ofthe company.

    4. Training at each level within the organization isessential to the success of improvement efforts.Training efforts should address both the humanisticand technical aspects of TQM. A TQM consultantwith at least a master's degree in statisticsshould conduct training on statistical processcontrol techniques.

    5. TQM implementation efforts should begin on a pilotscale, and successes should be publicized togain full acceptance and understanding of thepotential benefits of a TQM approach.

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    7 . BIBLIOGRAPHY

    Alfeld, Louis Edward, Construction Productivity . NewYork: McGraw-Hill Inc., 1988.Crosby, Philip B. , Quality is Free . New York: Mentor,1979.Deming, W. Edwards, Out of the Crisis . MassachusettsInstitute of Technology Center for Advanced EngineeringStudy, Cambridge, Mass, 1986.Imai, Masaaki, KAIZEN The Kev to Japan's CompetitiveSuccess . New York: Random House Business Division, 1986.Ishikawa, Kaoru, Guide to Quality Control . 2d ed; NewYork: Asian Productivity Organization, 1982.Ishikawa, Kaoru, What is Total Quality Control? .Englewood Cliffs, N. J. : Prentice-Hall Inc., 1985.Juran, Joeseph M. , Juran on Plannnina for Quality . NewYork: The Free Press, 1988.Oglesby, Clarkson H. , Parker, Henry W. , and Howell,Gregory A. , Productivity Improvement in Construction , NewYork: McGraw-Hill, Inc., 1989.Owen, Mai, SPC and Continuous Improvement . Bedford, UK:IFS Publications, 1989.Scholtes, Peter R. , The Team Handbook . Madison, WIJoiner Associates Inc., 1988.Walton, Mary, The Deming Management Method . New York: ThePutnam Publishing Group, 1986."Productivity Measurement: An Introduction", ConstructionIndustry Institute , Publication 2-3, Oct 1990."Project Control For Construction", Construction IndustryInstitute , Publication 6-5, Sep 1987."Input Variables Impacting Design Effectiveness",Constrution Industry Institute , Publication 8-2, Jul 1987

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    VITALieutenant David B. Cortinas was born in Mathis,

    Texas, on 11 April, 1963, the son of Gilbert and DiliaCortinas. He graduated from Texas A & I University in1985 under a "Summa Cum Laude" distinction with aBachelors of Science Degree in Civil Engineering. InNovember 1985, he earned a direct appointment as anEnsign, Civil Engineer Corps, United States Navy bygraduating with distinction from Officers CandidateSchool, Newport, Rhode Island. Upon graduating withdistinction from Naval School, Civil Engineer CorpsOfficers, Port Hueneme, California, Lieutenant Cortinasreported to Naval Construction Battalion THREE. Heserved as the Assistant Alfa Company Commander, AssistantOperations Officer, Engineering Officer, EmbarkationOfficer, and Of ficer-in-Charge of a twenty man detail toEdzell, Scotland. Lieutenant Cortinas' next assignmentwas as the Of ficer-in-Charge of Construction BattalionUnit FOUR ZERO FIVE, San Diego, California, during theperiod 11 July 1988 to 13 December 1990. In January,1991, he entered the Graduate School of The University ofTexas. He is married to the former Annette DorothyColbert.

    Permanent Address:2 07 SabinePortland, Texas78734

    This Report was typed by the author.

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    ThesisC75574 Cortinasc 1 On-site constructionproductivity improvement

    through Total QualityManagement

    .

    ThesisC75574 CortinasCt \ On-site constructionproductivity improvement

    through Total QualityManagement

    .

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