Improving Planning Reliability and Project Performance Using the Reliable Commitment Model

Commitment planning reliability at an operational level is a key factor for improving project performance. In the last 15 years, the Last Planner System, a production planning and control system based on lean production principles, has improved commitment planning reliability in the construction industry. However, many construction decision makers continue to rely on their experience and intuition when planning their commitments, which hinders their reliability. The reliable commitment model (RCM) is proposed to improve commitment planning reliability at the operational level by using statistical models. RCM is an operational decision-making tool based on lean principles that supports short-term forecasting commitment planning using common-site information such as workers, buffers, and plans. RCM was tested in several case studies, demonstrating its production forecasting capabilities and its ability to help increase commitment planning reliability and improve project performance. RCM also supports workload and labor capacity matching decisions. RCM has the potential of becoming a useful production decision-making tool.     

Constraint-Based Planning with Integrated Production Scheduler over Internet

Identifying and removing constraints from bottleneck activities help to reduce uncertainties in construction processes and increases the transparency of project management. The present means of look-ahead planning do poorly in resolving hidden constraints in the supply chain and information flow. Accordingly, work plans are vulnerable to the uncertainties that result in flow variation. It has been realized that reducing and eliminating critical constraints through better means of look-ahead planning are the keys to achieving reliable workflow and, consequently, increased productivity. This paper presents a constraint-based planning tool, Integrated Production Scheduler (IPS), to enhance planning reliability while adopting lean construction principles and the theory of constraints. Unlike the critical path method, the IPS models two additional types of constraints related to resource supply and information exchange. It employs four activity buffers: working, shielding, pulling, and screening for managing critical constraints and shielding the production from uncertainties. The implementation of the IPS is prototyped as a distributed scheduling system using Internet technologies such as Java and XML. It facilitates setting up a transparent project management environment where faster communication and active collaboration among project members are achievable.     

Role of Inventory Buffers in Construction Labor Performance

Buffers of material stockpile (inventory) are formed at the work level in construction to help manage production. The size of material stockpiles often has an important bearing on construction project performance. In construction projects, where conditions are often uncertain and variable, some have suggested that buffers be sized and located according to the conditions. New management thinking like lean construction and theory of constraints suggests that the size of buffers needs to be managed carefully, because when oversized, buffers are wasteful, impede workflow, and hinder performance. Research has shown that project variability can be affected with the careful deployment of buffers but has not really evaluated the impact on construction labor performance. This paper reports an exploratory analysis of the relationship between inventory (buffers) and construction labor performance with data collected from three commercial projects in Brazil. In this study, the size of the buffer between rebar fabrication and installation in the construction of a structural system is compared to the labor performance of the fabrication and installation crews. The results show that some buffer helps achieve the best labor performance in the construction operations studied.     

Reducing Variability to Improve Performance as a Lean Construction Principle

Variability is common on construction projects and must be managed effectively. New management thinking, like that of lean production, has suggested that better labor and cost performance can be achieved by reducing output variability. Efforts to utilize lean thinking in construction, so far, have generated limited evidence to support this claim. This paper investigates the relationship between variability and project performance to test the notion that reducing output variability will result in improved labor performance. Using productivity data from concrete formwork activities on multiple projects, various measures of output variability are tested against construction performance. It is shown that variability in output is inevitable and that there is little correlation between output variability and project performance, but that variability in labor productivity is closely correlated to project performance. It is concluded that lean improvement initiatives should be redirected to adaptable workforce management capabilities to reduce variability in labor productivity instead of output in order to improve project performance.     

Contractor Prebid Planning Principles

Planning is an essential function of project management. Yet, many small- and medium-sized contractors do a relatively poor job of operational planning. Better prebid plans will reduce costs, shorten schedules, and improve labor productivity. Unfortunately, the published literature offers little guidance for smaller contractors on what constitutes effective planning. Most papers describe planning as a macrolevel process for owners. Most emphasize scope definition for industrial projects. This paper describes a microlevel planning process for contractors. It consists of eight steps which are: (1) assess contract risks; (2) develop a preliminary execution plan; (3) develop site layout plans; (4) identify the sequences that are essential-to-success; (5) develop detailed operational plans; (6) develop proactive strategies to assure construction input into design; (7) revise the preliminary plan; and (8) communicate and enforce the plan. The entire process is illustrated with a case study project and is fully illustrated with figures which show how to integrate the work of multiple contractors, keep key resources (crews or equipment) fully engaged with no downtime, provide time buffers so the work of follow on crews can be efficiently done, expedite the schedule using multiple work stations and concurrent work, ways to communicate the work plan to the superintendent and foremen, and how to assess the feasibility of various work methods. The steps are easy to understand and implement. They will yield immediate positive results.     

Quantifying the Impact of Schedule Compression on Labor Productivity for Mechanical and Sheet Metal Contractor

In a typical construction project, a contractor may often find that the time originally allotted to perform the work has been severely reduced. The reduction of time available to complete a project is commonly known throughout the construction industry as schedule compression. Schedule compression negatively impacts labor productivity and consequently becomes a source of dispute between owners and contractors. This paper examines how schedule compression affects construction labor productivity and provides a model quantifying the impact of schedule compression on labor productivity based on data collected from 66 mechanical and 37 sheet metal projects across the United States. The model can be used in a proactive manner to reduce productivity losses by managing the factors affecting productivity under the situation of schedule compression. Another useful application of the model is its use as a litigation avoidance tool after the completion of a project.     

WorkPlan: Constraint-Based Database for Work Package Scheduling

A database program called WorkPlan has been created to systematically develop weekly work plans. Such work plans are used by crew foremen in scheduling work packages and allocating available labor and equipment resources. WorkPlan adopts the Last Planner methodology, which implements several lean construction techniques. A week prior to conducting work, WorkPlan guides the user step by step through the process of spelling out work packages, identifying constraints, checking constraint satisfaction, releasing work packages, and allocating resources; then at the end of the week, collecting field progress data and reasons for plan failure. This systematic approach helps the user create quality work plans and learn from understanding reasons for failure. The lean planning philosophy underlying WorkPlan and the functionality of the computer program implementation are detailed in this paper. Various ways of displaying work package data are illustrated. WorkPlan's job-shop scheduling view complements the view traditionally adopted by project management, as is reflected in scheduling tools using the critical-path method.     

Critical Concerns of Production Control System on Projects with Labor Constraints: Lessons from a Residential Case Study

Labor constraints and schedule pressures are common in periods of high market growth. Such conditions can have a significant impact on project performance. However, the extent to which such conditions impact the project depends on the effectiveness of the production control system. This case study analyzes the performance problems on a large residential project with significant labor constraints. The case first describes how the combination of labor shortage, high workload, and quality problems caused extensive workflow disruptions and schedule delays. Then, the analysis discusses why the production control system (the way the work assignments are planned, coordinated, and released for execution) failed to effectively manage these problems. The case is based on data from nine single-family houses in a large residential development. To evaluate the production control system, the authors used lean construction metrics and collected detailed data on the activities completed every week, the activities that were not completed as planned for that week, and the reasons for not completion. At the completion of the units, the researchers tracked the cycle time and evaluated the effect of the production control problems on the delays. The findings illustrate that, on projects with labor constraints, it is critical that the production control system focuses on creating reliable work assignments and minimizing quality defects in order to prevent further disruptions and make the best possible utilization of the limited labor resources.     

Improving Labor Flow Reliability for Better Productivity as Lean Construction Principle

New management thinking, like that of lean production, has suggested that better labor and cost performance can be achieved by improving the reliability of flows. In this context, lean thinking portrays reliable flows as the timely availability of resources, i.e., materials, information, and equipment. Little attention has been given to labor as a flow. Further, little discussion can be found related to flexible capacity management strategies. Efforts to utilize lean thinking in construction, so far, have generated limited evidence to support the need for more reliable labor flows. This paper investigates the lean principle that more reliable flows lead to better labor performance. Actual data from three bridge construction projects are examined to document the instances of poor flow (resource) reliability and its effect on labor performance. Inefficient labor hours are calculated. The results show that there is strong support that more reliable material, information, and equipment availability contributes to better performance. However, the projects showed considerable deficiencies in the utilization of the labor resource. It is concluded that lean improvement initiatives should focus more on workforce management strategies to improve labor utilization that will lead to better labor performance.     

Criticism of CPM for Project Planning Analysis

Published criticism in recent years concerning the inadequacy of Critical Path Method (CPM) as a project planning tool is identified and grouped under six major headings with reference to the publications in which the criticism were contained. These are answered from the writer's field experience and from experiences published by other authors. The object of the analysis is to see whether or not CPM as a project planning tool can meet the required functions of planning in construction, including consideration of legal and contractual framework and the complex and interdisciplinary nature of the project environment. The analysis reveals that, despite numerous criticism, project and construction planning should be done using CPM scheduling. Main factors affecting successful planning are realistic estimation of the productivity of crews in the context of expected job‐management efficiency conditions, and inclusion of sufficient time buffers between dissimilar trades. CPM is found to be equally useful as a planning tool for linear or repetitive projects. The limitations of this technique are identified in terms of the defined planning functions in the engineering phase of capital projects. A broad model for management of the engineering phase in revenue‐generating projects is suggested.     

System Model for Analyzing Design Productivity

Many engineering design companies collect data such as person hours to manage projects. But the relationships between operational variables and performance are usually not thoroughly analyzed and interpreted. This paper proposes a system model and procedure to relate influence variables to project productivity. The model was tested by analyzing 190 projects of an engineering consulting company. The relationships between design productivity and various input and process variables were identified and interpreted. For example, project size has a negative relationship with productivity, while the effect of quality assurance/quality control on productivity is not clear. Based on documented data and derived information, this model can help companies gain operational insight and thus improve productivity and profitability.     

Fundamental Principles of Site Material Management

This paper was written to fill a void created by the absence of fundamental principles of site construction management. Efficient material management is essential to managing a productive and cost efficient site. For more than 25?years, the senior author has been observing and writing about inefficient labor productivity practices resulting from poor site material management. Using deductive reasoning, fundamental principles were developed to avoid poor practices. A construction site should be portioned into three areas or zones: semipermanent (exterior) storage, staging areas, and workface (interior) storage. Each has a unique function relative to site material management. Using these areas as a framework, fundamental principles are stated and illustrated using a case study project accompanied by numerous photographs and narratives.     

Construction Engineering—Reinvigorating the Discipline

Construction engineering is all about production, and producing something useful is the very reason for projects to exist. How then to explain why construction engineering has progressively fallen out of focus in construction project management education and research? For an answer, the development of the discipline of construction management since the 1950s must be understood, a development that yielded a non-production-oriented approach to project management, one that provides the currently accepted operating system for managing the work in projects. This paper first traces the history of the development of the traditional operating system and related commercial terms and organizational practices. It argues that traditional practices rest on an assumption that careful development of a project schedule, managing the critical path, and maximizing productivity within each activity will optimize project delivery in terms of cost and duration. Subsequently, an alternative operating system, developed and proposed by the Lean Construction community, is described. In contrast to the traditional approach, lean defers detailed planning until closer to the point of action, involves those who are to do the work in designing the production system and planning how to do it, aims to maximize project performance (not the pieces), and exploits breakdowns as opportunities for learning. The history of this development will be traced in broad strokes.     

Productivity Scheduling Method Compared to Linear and Repetitive Project Scheduling Methods

The analysis of project schedules is among the central tasks of construction managers. Parallel to the well-known critical path method, linear scheduling techniques have been researched. The two most fully developed existing methods, the linear scheduling model and the repetitive scheduling method, are reviewed. Based on a discussion of a published example, the new mathematical analysis method for linear and repetitive schedules is introduced. The productivity scheduling method is based on singularity functions that provide a flexible and powerful mathematical model for construction activities and their buffers that are characterized by their linear or repetitive nature. The steps of formulating initial equations, stacking and consolidating them, and deriving information about their criticality are described in detail. The mathematical approach of the new method allows an integrated treatment of activities regardless of the number of changes in productivity within them and does not depend on the graphical representation of the schedule.     

Using Agent-Based Modeling to Study Construction Labor Productivity as an Emergent Property of Individual and Crew Interactions

Lean construction research has shown that managing work flow effectively and maintaining labor flow on site can improve construction labor performance. Related research also shows that congestion on construction sites often leads to lowered efficiency. Using these findings as a point of departure, we use the agent-based modeling method to represent the construction site as a system of complex interactions and explore whether labor efficiency can be treated as an emergent property resulting from individual and crew interactions in space. This allows us to use a “bottom-up” approach to analyzing labor efficiency, which supplements existing “top-down” approaches to modeling the impacts of space congestion on labor efficiency. A pilot implementation of the agent-based model, and preliminary results illustrating the relationships between congestion and labor efficiency are presented. The empirical studies exhibit system behavior that support published principles of work-force management. The primary contribution of this paper is that it provides a method that can be used to efficiently utilize construction space, and develop plans and schedules that account for congestion arising from crew interactions in space.     

Model for Predicting the Performance of Project Managers at the Construction Phase of Mass House Building Projects

The need to match project managers’ (PMs) performance measures onto projects of both unique and similar characteristics has long since been acknowledged by researchers. The need for these measures to reflect the various phases of the project life cycle has also been contended in the recent past. Here, a competency-based multidimensional conceptual model is proposed for mass house building projects (MHBPs). The model reflects both performance behaviors and outcome in predicting the PMs’ performances at the conceptual, planning, design, tender, construction, and operational phases of the project life cycle. Adopting a positivist approach, data elicited for the construction phase is analyzed using multiple regression techniques (stepwise selection). Out of a broad range of behavioral metrics identified as the independent variables, the findings suggest the best predictors of PMs’ performances in MHBPs at the construction phase are: job knowledge in site layout techniques for repetitive construction works; dedication in helping works contractors achieve works schedule; job knowledge of appropriate technology transfer for repetitive construction works; effective time management practices on house units; ability to provide effective solution to conflicts, simultaneously maintaining good relationships; ease with which works contractors are able to approach the PM and volunteering to help works contractors solve personal problems. ANOVA, multicollineriality, Durbin–Watson, and residual analysis, confirm the goodness of fit. Validation of the model also reflected reasonably high predictive accuracy suggesting the findings could be generalized. These results indicate that the model can be a reliable tool for predicting the performance of PMs in MHBPs.     

Benchmarking Productivity Indicators for Electrical/Mechanical Projects

Labor-intensive industries such as the electrical and mechanical trades are considered high risk due to the high percentage of labor costs. Because of this high risk, it is important for contractors in these industries to closely track labor costs on projects and compare these costs to industry benchmarks. In this paper, benchmark indicators for these industries are established on the basis of actual project data. These benchmarks include the relationship between the percent complete or percent time and cumulative work hours or cost, project size and duration, project size and average man power, project size and peak man power, and average versus peak man power. These relationships were developed using regression analysis. Man power loading charts and the related S-curves were developed from actual project data. The man power loading charts and the related S-curves are useful for resource planning and for tracking progress on a construction project. They can be used to show the cause-and-effect relationship between projects impacted by outside factors and normal labor productivity.     

Use of Safety and Lean Integrated Kaizen to Improve Performance in Modular Homebuilding

The two biggest challenges in the construction industry, low productivity and high injury rates, may be addressed simultaneously through the combination of lean production strategies and traditional safety-analysis tools. This case study used Safety and Lean Integrated Kaizen (SLIK) in a modular housing manufacturing facility by applying one lean production tool, kaizen, and a safety-analysis tool, job safety analysis (JSA). The research team used SLIK with the base-framing crew, and the method consisted of analyzing the current process, determining and implementing process improvements, and analyzing the improved process. The changes resulted in a 16% increase in value-added activities and increased the framing crew’s overall output by 55%. By making quick, low-cost changes that were intended to improve productivity to the station layout and work design, safety and ergonomic hazards, including reduced trip hazards, pinch points, and back strain, were also reduced or eliminated. These results support the hypothesis that productivity and safety can be improved simultaneously through combined lean and safety tools.     

Integrated Schedule and Cost Model for Repetitive Construction Process

Several efforts have been made by many researchers to develop a model for schedule and cost integration in construction projects, but it is difficult to integrate and manage schedule and cost in an actual construction site using such a model. The integrated schedule and cost model developed in this study (1) enables the planning and control of repetitive construction processes and (2) can be used by a project manager in an actual construction site. Furthermore, an integrated schedule and cost model for the core wall construction, which is an important repetitive process in the recently booming high-rise building construction in terms of scheduling, was developed using the integration model developed in this study. It is expected that the integrated schedule and cost model developed can allow project managers to integrate the schedule and cost of repetitive construction processes more effectively and support the project managers’ decision-making.     

Measuring and Modeling Labor Productivity Using Historical Data

Labor productivity is a fundamental piece of information for estimating and scheduling a construction project. The current practice of labor productivity estimation relies primarily on either published productivity data or an individual’s experience. There is a lack of a systematic approach to measuring and estimating labor productivity. Although historical project data hold important predictive productivity information, the lack of a consistent productivity measurement system and the low quality of historical data may prevent a meaningful analysis of labor productivity. In response to these problems, this paper presents an approach to measuring productivity, collecting historical data, and developing productivity models using historical data. This methodology is applied to model steel drafting and fabrication productivities. First, a consistent labor productivity measurement system was defined for steel drafting and shop fabrication activities. Second, a data acquisition system was developed to collect labor productivity data from past and current projects. Finally, the collected productivity data were used to develop labor productivity models using such techniques as artificial neural network and discrete-event simulation. These productivity models were developed and validated using actual data collected from a steel fabrication company.