Productivity Improvement

lean productivity improvementSuperior Productivity is the hallmark of successful construction contractors. Labor cost is the consistent variable in all projects. It is the culprit in 90%+ of unprofitable jobs. Improving labor’s performance both in the field and the office is a critical success factor. If all projects are profitable then the construction company is also.

We use the Lean Model to transform construction contracting firms. In a phrase, we define Lean as asset productivity i.e. current and fixed assets along with people. Productive assets mean higher ROI. Healthy financial results bode well for construction contractors and their staffs. As you know, cash in the bank can determine whether your business future will be a) robust b) troubled or c) extinct. The bank does not have an opinion about your balance; it is not debatable. That balance allows you to take a long-term view or forces you focus only on the short term. Greater asset productivity is what most contractors desire. It beats the alternatives.

Asset productivity can be broken down into more familiar construction concepts:

  1. Higher labor productivity
  2. Less material waste
  3. Increased equipment utilization
  4. Improved overhead productivity
  5. Safer workers
  6. Trouble-free installations
  7. Better overall current and fixed asset utilization

We have interpreted the Lean Model and installed it in construction firms. This is not a supply chain approach; it is squarely focused on asset productivity.

On average, 32% of every labor hour is spent on non-productive tasks. While a portion of this wasted time is outside of the contractor’s control, a significant amount is directly related to the quality and consistency of planning, communication and other various management activities. Stevens Construction Institute’s Productivity Improvement Process focuses on identifying the controllable productivity-drivers and best practice approaches that impact project performance within your firm. Once identified, we will facilitate the development of proactive tools, processes, and measurement/feedback systems to address these productivity-drivers and best practices.

For some clients, we write and publish a Business Process Manual to clearly document these processes and tools for use today and years ahead. This manual can be used to train and maintain standards for all company personnel for years to come. We give it to you in both paper and electronic format so you may update it as you want.

Approach

Stevens Construction Institute’s Productivity Improvement Process involves a three-step program after an initial operations evaluation has been completed. This approach has been proven to be effective in the construction contracting industry.

The steps and description of the process are available after a brief consultation. Contact us directly at mstevens@stevensci.com or call 407-492-1785.