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Total Quality Management for Total Quality Management for Improved Project SuccessImproved Project Success
Construction Claims Monthly
Webinar
March 1, 2012
www.frisbygroup.org
©Tom N. Frisby 2012Power Point Presentation by: Mendi Shuttleworth
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Sustainable Success
Dramatically Changing Industry Delivery Systems Technology – Hard & Soft Quality Performance Demands
Productivity gains meager, at best!
How does a contractor compete, and staycompetitive?
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Program PurposeSustainability by construction contractors can occur,
though rarely seems to.
Maslow studied successful and bright people to formulate his needs of hierarchy and actualization conceptsWe have studied successful companies to see why they became successful and why they have stayed successful.Construction is like NASCAR. Some racers win purses, some hit the wall, and some just hang on as long as their sponsor's money lasts. We wish to learn from the losers but concentrate on why some drivers drink the milk at the finish line, year after year.Our purpose is to highlight the reasons some companies are like the battery, and just keep going, and why some aren’t.
There is no “one size fits all” model!
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The Age of Darwin
It is indeed, survival of the fittest! Of 850,000 non residential
construction companies in 2004, only 649,600 were still in business in 2006. ( 23% failure rate )
Owners are demanding
The bar of performance is being raised
Only the most qualified will be selected
The economy is not friendly
Owners are shifting the risk to the contractors.
Contractor Failure Rates
14.6%24.6%1541 Industrial
17.5%25.0%1542 Non-residential buildings
21.6%27.4%1600 Heavy Highway
24.4%29.0%1700 Trade Contractors
2004-062002-04SIC
Source: BizMiner
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Envelop of RiskDegree of Risk
Plan & Spec
Design Build
Pre-qualification
Exculpatory Clauses
Capital Shortages
Owner
Contractor
It is very HOT in the kitchen!
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Control Transfer to Contractor Two Step Delivery SystemsRisk Transforming Systems
Degree of Influence
over Productivity
Design Build Construction
Team
Owner Program
Requirements
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Heat in the Kitchen – How do you handle it?• Get out as some have, voluntarily or involuntary
• Become more competitive; climb to the top of the food chain
• If you have reached the top, figure out how to stay there
This is a dynamic, high risk, ever changing, competitive business.
You never “have it made”!
The sustainable, prevailing characteristic of a successful contractor is PASSION!
• The passion to stay on top of the heap
• To advance the game
• To be better at the end of the year than at the beginning
• To be better at the end of the project than at the beginning
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Deming’s Circle
Ask yourself:•Are you better today than in March 2011?
•Is your Company?
Get Work Do it Better
Get WorkDo it Better
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The Role of Today’s Contractor:
Contractors must be more than just builders. They must be excellent business managersMarketing (acquisitions) is no longer just reading the Dodge report. It is now a function of the entire spectrum of activities in the company.Marketing is a function of better performance than the competition, by each and all, from the president to the clean up laborer.
This is where some form of quality performance and continuous improvement programs should be evaluated, formed to fit your company, and implemented.You may not call it Total Quality Management (TQM) but if it is effective your improvement plans will have the basic elements of TQM
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What is Total Quality Management?(TQM)
Developed by Deming whose consultancy to Japanese business, postWorld War II, helped it become an industrial giant with better cars than ours (for a long time) and other products as well.
Basically it is simple: Leadership Customer driven Improvement of all elements of an organization to be more competitive in
the market place Continued improvement A company culture of quality performance built around people and
processes
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Construction Industry Institute (CII)
“Companies must institute TQM or become non-competitive in the national and international construction and engineering markets in the next 5 to 10 years.”Question: Do we build 36 story buildings in 16 calendar days? The Chinese do – just did one in December 2011.
Get the drift of CII’s warning?
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The Yellow Brick Highway
Passion and commitment are not enough. The highway to success must be built of
solid bricks which support the goals of the company.
TQM is a blueprint of the bricks that line that highway.
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IntegrityEthics
Principles
LeadershipCreativity
ImprovementMarketplace
Pareto
PeopleHiring Potential
EnablementEmpowerment
TrainingParticipationRecognition
ProcessesBest Practices
ExecutionImprovementMeasurement
IndustryImmersion
InterfaceManagement
Deming’s Quality Interlocking Circles
Customer Commitment
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But This Is An Elephant
Eat it One Bite At a Time!Pareto Principle (80 / 20)
“80% of the effects come from 20% of the causes!”
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First Bite: LEADERSHIPLEADERSHIP
An unmistakable characteristic of the continuously successful company is leadership blended with
“managementship”
CII says that leadership eclipses all other elements of TQM.
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Leadership & Managementship
LeadershipLeadershipDiscovering right market Discovering right market nichesnichesHow to be ahead of How to be ahead of competitioncompetitionCompany values, visionCompany values, visionMeeting new challengesMeeting new challengesHow to improveHow to improveBringing technology into Bringing technology into companycompanyCommunity involvementCommunity involvementWork place environmentWork place environment
ManagementshipManagementshipPolicies & procedures in place (project management tools)Implemented (performance) people development, training, effective use of technology systems & conflict managementContinuous improvement programsCommunicationEvaluation mechanisms
It takes both, plus EXECUTION!
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Leadership & Managementship
First step in TQM: Check out your balance between the two. Presidents should weigh in more heavily on the leadership scale. If the leadership functions are malnourished, company success will normally dim. Everyone should exercise leadership to some extent. (a welder who suggests ideas for better spools is showing leadership)Second step in TQM: Determine the leadership approach in your company. Top line generally trumps bottom line management.
BUT NOT ALWAYSBeware of the “One Size Fits All”!
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The Role of the PresidentManagement Approaches
Top Line ManagementEmpower others (enable first)Ideas from anywhereGet the best people, develop them, & reward them (see “Good to Great”)Customer driven: internal & external (see “NUTS”)Profit driven (grow capability before revenue)Team orientedContinual improvementAccountability committedProcess drivenStrategic plannerPriority managerLiquidity managerStrong principles (see Roy Disney)
Bottom Line ManagementCommand & controlIdeas from the topPeople are expendableFinancial drivenRevenue drivenCompany focusStatus QuoDo what it takesGet it doneTactical planner
BUT ONE SIZE DOES NOT FIT ALL!
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Leadership CompanyThe Role of the President
“It is difficult to soar with the eagles when the president is a sparrow” (anonymous)
For TQM (or any real improvement program) to be effective, the role and effectiveness of the president (and his management team) must
first be evaluated.
The following is what we expect of the president:
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The Role of the PresidentHe is the “Head Coach”
Knows how to play the gameDevelops game plans which will win using: Excellent players who have a play book
Processes Real team players that give input on how to win
A great recruiter People want to come and stay at his/her company
Has excellent assistant coachesConstant evaluation of game plan and playersCan take a loss and still come back for the next gameInnovative – a student of his professionPrepares for a muddy field
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PresidentPresidentHe has an approach for implementing
a quality performance at every level of the company:
1. Leadership’s continual commitment to quality2. Generates awareness, education and motivation of changes to
attitude of staff and all personnelInvolvement of organization (ownership) Bottom up instead of top down.
3. Develops visions and goals through strategic and tactical planningMarketPeopleProcessesDifferential advantageRisk management Inter-company managementIndustry involvement
4. Develops quality plans for all players of work. (implements, monitors and measures.)
Employee participationCustomer feedback
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Strategic Planning Process
Team meets quarterly to assess its attainment of goals, reassess objectives as necessary.
Each manager will develop and monitor specific action plans for each tactical objective
Hire PECriteria: Degree in
mechanical engineering
Supervisor training program
Develop best practices field program
Implement benchmarking
Development of processes
Prepare bid/no bid decision checklist
Develop screening of potential jobs to bid to be consistent with goals of job mix, project risk, and core competency
Develop training program for scheduling and contract management
Hire PE for Design Build projects
Study reasons for job “fade” and develop and monitor close out plan
Strategic objectives (e.g.)
Develop better job mix (large projects balanced against lower risk, fast turnover projects.)
Improve cash flow management so jobs and bank finance projects
Develop plan to bring young people into the company at field and office levels
Participate in Design Build market
Increase profit percentage by a point or more
Improve reputation in community
Present overview of Evaluation report (Where we are, strengths, weakness. What’s worked – What hasn’t?)
Present forecast of opportunities, trends in the market areas.
Discussion of what we want the company to be over the next three years.
MarketsType & size projectsCharacteristics and qualifications of
personnel (office & field)Revisit values, guiding principlesCommitments to quality performanceCustomer relationsRisk managementProfit growth vs. revenue growthSuccessorshipPlant & equipmentCompensation & rewards programThis dialogue is framed around the question: What do we want to be?Assign responsibilities for meeting
Quarterly ReviewAction PlansTactical PlansMeeting ResultsAgenda – coordinated with
Participants
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Remember the elephant?Second Bite: PEOPLE
LEADERSHIPPEOPLE
From Good to Great
“Load the bus with the best people and put them in the right seats. Then you can go anywhere”
Bottom Up Participation
Empowerment…but Enablement FIRST
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Company Organization and Procedures
enablement empowerm
ent
High Standards
X Technical
X Values (Character)
X Process
X Accountability
X Interpersonal Relations
Command & Control Do Manage Lead
Martin K. Eby Sr. felt his number one job as President was to develop his people through a coaching and experience matrix.
This is the reason for succession plans – to develop (or enable) a subordinate into a greater management position. This is the reason for career development programs, continuous improvement programs, seminars,
in-house training, and lifetime training to enable individuals to perform (and this organization) to perform better.
Without “enablement” there is not quality organization: empowerment will fail.
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Continuous Training
Hiri
ng
Appr
oach
Inte
rns
Expectations
& Evaluatio
ns
In-house training
Conference room, on the job, Webinar
Coaching / Mentor Programs
“Slettenizing”Pre-mortems
(lessons learned)Priority
Identification
Best Practices Teams
During
Mortem
sPo
st M
orte
ms
Succe
ssor
Develop
ment
Industry
Advances
Cross Training
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Pareto: Field SupervisionLargest risk: Field operations
Concentrate on development of strongest possible field supervisory staff
CONCEPTS:
Field supervisors are like presidents of small companies Give them the necessary tools including training
D-Day at Normandy – Able to handle changing circumstancesLean management concepts (see attachment)Best practices committee“Slettenizing” – CoachesTrend managementMechanisms for identifying and improving issues (focus meetings)
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Remember the elephant?Third Bite: PROCESSES
LEADERSHIP
PROCESSES
PEOPLE
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Productivity Factors (Fig. 1)
Leadership - Commitment
Processes and procedures aimed at job performance, not just more paper
Use processes and procedures as tools for improvement
Load the bus with excellent people
Get rid of losers
Motivational programs
Development of field supervision
Continuous training
Identify “Span of Control!”
Operate within span of control
Grow people and systems before, or contemporaneous with revenue
Concentrate of profit growth
Using proven people for new projects rather than hiring an unknown after you get the job.
Effective processes
Have the best people
Operating within strengths Turnover Pre
PlanningQuality of Estimate
Risk Evaluation
Effective turnover to project team
Effective pre planning meeting of the project team members
Quality of supervisory personnel
Quality of subs/suppliers and getting them on team
Estimating capability to do the job, not just taking off material and multiplying times unit
Accuracy check missed quantities often means missed labor to install quantities
Quality of subs/suppliers used
Contract reviewJob site reviewSchedule
analysis-nature of job owner-Designer (CM, GC) reputation
In house supervisory team
Risk management approach
Strategic Planning
Tactical Planning
Operations
Hom
e Office
Decision Making Management Relationship Management
Job set up(Plan success)
Maintain momentum through non-adversarial team approach
Unity of home office and field office instead of two company atmosphere
Integrity – AccountabilityCommunicationBuilt it quality
25/10 conceptEffective scheduleThree step quality
program in placeSafety in placeJob bought outDrawing review to clean
up ambiguities, errorsCommit to getting
submittals through timely & material.equipment deliveries on time
Begin crew planning approach
Material handling planLogsEstablish labor units
COLLABORATIVE APPROACHWITH OWNER-DESIGNER-SUBS
OPERATIONS HOME OFFICE
FIELD
EXECUTION
EXECUTION
EXECUTION
SAFETY
SCHEDULE-UPDATE MANAGEMENT TOOL
QUALITY-PIF (SHORT FOR NO PUNCHLIST GOAL)
CONTRACT MANAGEMENT (NOTIFICATION, COMPLIANCE)
LOOK AHEAD SCHEDULES
DAILY PLANNING
MAINTAINING LEARNING CURVE
WORK FLOW
FIELD DOCUMENTATION
MONITOR & EVALUATE
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Productivity Factors (Fig. 2)
Post Completion ReviewClose Out ExecutionClose Out Plan
Cash Flow Development
Lessons learned to improve next project
Run your own inspectionsComplete deliverablesComplete open negotiationsCompleteTABSystem checkout if requiredFinal inspection
Reschedule in detail at 75% to intensify actions needed to complete on time
Schedule manufacturers representatives training as required
Timely billings & paymentBilling changes promptlyStaying on scheduleAvoiding withholdings due to failure to performAvoid continued retainage withholdingMeeting job objectives (labor, cost, completion)Timely final payment
Programs in place to identify areas for improvement and implementing / monitoring plans to improve
Coaching (mentoring)
Being vigilant to potential problems & solutions
Decisions neededSubmittal turnaroundDeliveries Labor cost trends (earned value)Schedule Trends RelationshipsInput from other team membersQualitySafetyFocus meeting on issues of concern
Continuous Improvement - FiledLook Ahead Home OfficeMonitoring (Timely) Operations
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Productivity Factors (Fig. 3)
Productivity PAC Men
RE-W
ORK
EXCESSIVE WARRANTY
JOB CONDITIONS
EXCESSIVE OVERTIME
UNTIMELY DELIVERIES
UNTIMELY SUBMITTALS
UNTIMELY DECISIONS
INEFFCIENTMATERIALHANDLING
INEFFECTIVE
PLANNINGAND USES
OF SCHEDULE
UNQUALIFIEDPERSONNEL
CRAFTSMAN TURNOVERSUPERVISORY
TURNOVER
•DISRUPTIONS•OUT OF SEQUENCE•CROWING•ACCESS•DENIAL/OBSTRUCTION•CHANGED CONDITIONS•ACCELERATION
COLLABORATIVE APPROACH
WITH OWNER-DESIGNER-SUBS
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Processes Schedule
SCHEDULE AS
DOCUMENT
CONSULTANT PREPARE
UPDATE FOR BILLING
USE TO COVER
HOLE IN WALL
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SCHEDULEAS
PROCESS
BEST PLAN FOR MANAGING PROJECT
BASIS OF SERIES OF PROMISES
MANAGES VARIABLES
Processes:
MEASUREMENT
TOOL
20-20
FORESIGHT
BEST PLAN FOR
PRODUCTIVIT
Y
(WORK FLOW)
PARTICIPATORY (OWNERSHIP)
COMMUNICATION
TOOL
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Processes Field Documentation
FIELD DOCUMENTATION
AS PAPERS
TOMBSTONE
20 / 20 HINDSIGHT
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Field Documentation As a Process
Daily Report Shows Equipment Delivery
Management asks”WHY”
Give Owner & Supplier Written
Notices
Works to Mitigate Damages
Updates Schedule to Show New Data
Record Effect
Update Labor Report Shows
Negative Trend
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Remember the elephant?Fourth Bite: EVALUATION
LEADERSHIP
PROCESSES
PEOPLE
EVALUATION
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Pareto – The Frisby learning curve“We have learned to repeat our mistakes.”
Companies fail because early detection of cancer is not spotted and excised.
(The Law of Chaos)
CANCER
1. Inspect and correct philosophy
2. Inadequate field documentation
3. Failing to update schedule and coordinate
METASTASIZE
1. Delays close out, increases labor cost. Risk not being pre-qualified on next job
2. Lack of early warning and timely notice bars potential claim
3. Project goes south. Wrecks production flow. Build claims instead of projects
Cancers which can MetastasizeCancers which can Metastasize
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Lessons Learned
Too often, these deficiencies are repetitive.Too often, these deficiencies are repetitive.Lesson: Evaluate your repetitive weaknesses and mistakes:Lesson: Evaluate your repetitive weaknesses and mistakes:
••By correcting you improveBy correcting you improve
••By failing to do so, you may start moving off the radar screenBy failing to do so, you may start moving off the radar screen
Successful companies make mistakes but:Successful companies make mistakes but:
••A system to identify early A system to identify early
••CorrectCorrect
••ImproveImprove
My Motto: “Because I was dumb six months ago doesn’t mean I havMy Motto: “Because I was dumb six months ago doesn’t mean I have e to stay dumb”to stay dumb”
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Pareto: Monitoring & Evaluation
The trajectory of a missile to the target involves a series of corrections. There must be real time data to know when you are off course, a process for correction, and monitoring to assure that
the corrective action is working.
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Key Performance Indicators (KPI’s)
“If you are not measuring performance you are just practicing.”
•A KPI is the measure of a process that is critical to the success of an organization or project.
•KPI’s are essentially the evidence that change and process improvement are actually leading to positive change in terms of better performing projects and organization.
•Center stage of TQM (or any improvement program) is measurement which means: create a baseline, start effective pre-planning, reduce punch lists to zero, and get G & A in line with industry average.
•Develop mechanism for reliable and timely information for assessment, evaluate results, take action, stay the course, and make correction
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Liquidity as a “keyhole” KPI
Liquidity – using current ratio (CR) is a “keyhole” KPI. If the CR is you look through the keyhole < 1.0 and
will probably see:
•Poor quality of estimates
•Unbilled change orders
•Claims (and poor claim management)
•Excessive overhead
•Poor workmanship
•Productivity issues
•Management by / of others
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CASH FLOW MANAGEMENT
INVESTMENT
RIGHT JOB
GOOD ESTIMATE
MOBILIZATION
BILLING
CHANGE ORDER BILLING
WORKMANSHIP (BIQ)
LEARN G & AWORK FLOW
SAFETY
BACKCHARGE
MANAGEMENT
TIMLE
Y PROCESS
CASH FLOW MANAGEMENT
Keep the cash running through the company. Some of it is going to stick.
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Over Evaluation of Numbers
The critical issue is not the number!
It is the process that drives the numbers.
One of the reasons TQM fails:
Obsession with numbers rather than identifying and correcting the drivers
of the numbers.
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LEADERSHIP
PROCESSES
PEOPLE
EVALUATION
Remember the elephant? Fifth Bite…
OTHER AREAS OF LEADERSHIP
OTHER AREAS OF
LEADERSHIP
LEADERSHIP: Staying in the game and management of growth. Grow the capability to perform before revenue growth or new
market penetration.
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Span of Control (The Company’s Infrastructure)
$
Type of Project
Size
Location
Delivery System
Contract Risks
People in PlaceProcesses In Place
Nature of Owners/Designers
Improvement Systems
Guiding Principles
Liquidity
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Span of Control Span of Control (The Company’s Infrastructure)(The Company’s Infrastructure)
Location
Out of State Project
Contract Risk
People
New, untested Project Managers
Unreasonable, Under Budgeted Owner
Owner
Liquidity
No Damages for Delay Clause
Living off Next Job
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Risk Management – Successful Companies Control their Destinies
AVOID PRICE MANAGE
•Unreasonable too costly to bear
•No damage for delay•Excessive liquidated
Damages (LD’s) •Impossible schedule
•Develop solution
This is youredge. This is what
competition is about!
•Become non-competitive•Tight schedule
•Poor Plans
No Control
Gamble Some Control Greater Control
Manage
A significant element of TQM is RESTRAINT
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The Role of Restraint
Bidding work you are not capable of doing
Empowering before enabling
Spending instead of saving
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Leadership Recession Management
As seen on the following chart, recessions come and go.
Like the weather, they hit some regions harder than others.Quality management includes managing for the bad times as well as the boom years.
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How to Manage Recessions
Plan that bad times may occur (or a bad job) Demographics watcher Lean flexible overhead (minimum fixed-avoid debt) Diverse Markets – Turner Model of 80’s (cash flow
markets) Company participation model (WIRTZ) Operate within span of control-avoiding high risk projects Become more productive – Compete through performance
improvement no mistake in bid. Avoid claims
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Remember the elephant?Sixth Bite: INTERFACE MANAGEMENT
LEADERSHIP
PROCESSES
PEOPLE
EVALUATIONOTHER AREAS OF
LEADERSHIP
INTERFACE MANAGEMENT
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INTERFACE MANAGEMENT
SUPPLY CHAIN
FINANCIAL RELATIONSHIPS SUBCONTRACTORS
TECHNOLOGICAL TRENDS
INDUSTRY TRENDS / RESOURCES
CUSTOMEROWNER/GENERAL
CONTRACTOR
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What does Customer Commitment Mean?
Perform
Continue to get Better
Organize to Perform
Understand Customer Needs
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CUSTOMER
SOLVE IT’S PROBLEM
MIND SHARING
RISKS(CONTRACT/REPUTATION)
COLLABORATION
DO THE RIGHT THING RIGHT
KNOW HOW TO PLAY HIS GAME (FEDERAL-e.g.)
CUSTOMER FOR LIFE
MUTUALITY
DECISION MAKING
OWNER GC
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SUPPLY CHAINMANAGEMENT
“ON THE TEAM” COLLABORATION
THE EFFECT ON LABOR COST
TURNER MODEL
MATERIAL
HANDLING
SEQUENCING &
DELAYS
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INTERFACE MANAGEMENT
TRADE ASSOCIATIONS
SAME, PMI, CSI, SBA
COMMUNITYUNIVERSITIES(Purdue, e.g.)
PEER GROUP
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FINANCIALRELATIONSHIPS
SURETY
BANK
CUSTOMERS
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TECHNOLOGY MEANS & METHODS
ELECTRONIC TOOLSBIM
PM SYSTEMSCLOUD COMPUTING
ROBOTIC
DELIVERY SYSTEMSDESIGN BUILDINTEGRATED
PROJECT DELIVERY(IPD’s)
PROJECT MANAGEMENTBIM 25/10 CONCEPTLEAN MANAGEMENT
NO PUNCH LIST (P-I –F)BEST PRACTICESCOLLABORATION
SPEEDPRE-ASSEMBLY
MODULARMATERIALS (FRP, e.g.)
CHINESE 16 DAY BUILDINGNANO TECHNOLOGY
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TQM – The IndustryNational Research Council (NRC)
Recommendations Opportunities for Breakthrough Improvements
The point is: The industry itself must look inside and figure out how to heal itself.
1. Widespread deployment and use of interoperable technology applications, also called Building Information Modeling (BIM)
2. Improved job-site efficiency through more effective interfacing of people, processes, materials, equipment, and information
3. Greater use of prefabrication, preassembly, modularization, and off-site fabrication techniques and processes
4. Innovative, widespread use of demonstration installations
5. Effective performance measurement to drive efficiency and support innovations
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TQM – Why it Fails:Because it is often implemented as a separate, and sometimes costly, unproductive activity. It isn’t a separate activity. It is an inherent part of what you do (or should
do/every activity)Because the best policies and procedures on the globe have never managed a company or project. Procedures and processes help us know the best practices for managing /
supervision. But it takes the understanding and commitment by qualified personnel to
make it happen. Like a CPM schedule, procedures are tools. They represent the race car. It takes the driver to win the race.
The inappropriate use of consultants, like a scheduling consultant who sets up the CPM then takes off for another client. It is the project management team that will turn that schedule into reality. The “expert” who helps you set up a TQM type program is not going to
run your company. It takes leadership and continual commitment at all levels.
Procedures without ownership are like row boats without oars. (Saturn 1-C).
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TQM – Why it Fails: (cont.)Failing to communicate the selfish side of improvement to personnel: “There is something in this for me!” Job security, career path Sense of fulfillment Pride in self and company Recognition Financial rewards
Because the company tries to eat the elephant in one bite. Identify first meaningful bite Work it through system and demonstrate success Reevaluate; if necessary modify The next bite. Seldom more than 2-3 bites simultaneously.
Lack of communication and training of all involvedGap between management rhetoric and actual performanceFailure to measure resultsBecause personnel think increased profit simply go to buying president a new boat or finance another hunting trip.EgosOver institutionalized companies (politics)Our Iceberg is Melting. Mr. NoNo
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How do you improve?
1. Establish a standard2. Develop a process to meet the standard3. Train people on the process4. Get input from people doing the work5. Analyze Process
Take out steps/activitiesReduce wasteDo it right the first time
6. Update technology7. Emphasize planning8. Emphasize execution
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1. Constancy of Purpose for continual improvement of services and allocation of resources to achieve this purpose.
2. A New Philosophy which finds unacceptable unnecessry waste, delays, defective products and workmanship.
3. Cease the concept of inspect and correct through built in quality.
4. Procure through value oriented, instead of lowest cost, contracts.
5. Improve every process.
6. On the job training of all levels in the company.
7. Leadership aimed at programs to improve productivity.
8. Replace fear with participation.
9. Replace slogans with effective methods and training.
10. Develop a culture of pride in workmanship.
11. Encourage education and training.
12. Leadership's commitment and action to achieve its goals.
13. Open communication by breaking down barriers.
14. Replace arbitrary goals (such as quotas) through training and processes.
Dr. Demings 14 Point Total Quality Management Program