Site Management of Work-in-Process Buffers to Enhance Project Performance Using the Reliable Commitment Model: Case Study

Buffers have been commonly used as a production strategy to protect construction processes from the negative impact of variability. Construction practitioners and researchers have proposed several buffering approaches for different production situations and contexts. However, these solutions have been impractical for managing buffers. To overcome this, this study proposes a new site methodology for managing work-in-process (WIP) buffer in repetitive projects, on the basis of the reliable commitment model (RCM). RCM is a decision-making tool based on lean principles, which uses statistical models to develop more reliable work plans at the operational level. RCM helps to manage WIP buffer in work plans by using site information and planning reliability indicators that result in improved project performance, such as labor productivity and process progress. A repetitive building project was used as a case study. The main finding was that labor productivity, process progress, and waiting times improved when using larger WIP buffers than those typically used among crews. This shows the potential of RCM as a practical tool to manage WIP buffer sizes and to promote the use of lean production strategies at the operational level.     

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.     

Impact of Change Orders on Small Labor-Intensive Projects

In today’s construction, small projects can be just as important if not more important than the larger projects. However, small projects are usually fast track projects, which often involve overlapping design and construction time. Subsequent modifications may be required for the sections that are already under construction. These disruptions to the ongoing project are labeled as change orders. The impact due to changes has been described as the adverse effect upon the unchanged work due to changes in the contract. For this study, 34 projects were selected to develop a statistical model that estimates the amount of labor efficiency lost due to change orders for small projects. The variables in the final model are percent design related changes, percent owner initiated changes, the ratio of actual peak labor to estimated peak labor, the ratio of actual project duration to estimated project duration, and project manager’s percent time on the project. The results of this paper are of value to owners, electrical and mechanical contractors, and construction managers. The model quantifies the impact of change orders by introducing the most important variables that bring the largest disruptions.     

Reliability Buffering for Construction Projects

Buffering is a common practice in project planning. Project managers or schedulers have used a time contingency to guarantee the completion time of either an activity or a project. This traditional buffering, however, often fails to protect the project schedule performance, resulting in an unnecessary resource idle time. To deal with this problem, reliability buffering, a simulation-based buffering strategy, is presented. Reliability buffering aims to generate a robust construction plan that protects against uncertainties by reducing the potential impact of construction changes. The effectiveness of reliability buffering is examined by simulating a dynamic project model that integrates the simulation approach with the network scheduling approach. The research results indicate that reliability buffering can help achieve a shorter project duration without driving up costs by pooling, resizing, relocating, and recharacterizing contingency buffers. A case study of bridge construction projects also demonstrates how construction projects can benefit from reliability buffering in real world settings. Although further validation is needed, reliability buffering can potentially impact the planning and control of construction projects by improving the consideration of construction feedbacks and characteristics in buffering, and serving as an input to a dynamic project model.     

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.     

Measuring the Impact of Rework on Construction Cost Performance

Rework continues to affect both cost and schedule performance throughout the construction industry. The direct costs alone often tally to 5% of the total construction costs. Using the data obtained from 359 construction projects in the Construction Industry Institute database, this paper assesses the impacts of rework on construction cost performance for projects in various categories. In addition, it identifies the sources of this rework, permitting further analyses and the development of rework reduction initiatives. The results of this study establish that the impacts of rework differ according to project characteristics and that the sources of rework having the greatest impact are not significantly different among project categories. By recognizing the impacts of rework and its sources, the construction industry can reduce rework and ultimately improve project cost performance.     

Role of the Fabricator in Labor Productivity

This paper describes the results of three case studies in which the subcontractor-fabricator relations had a significant negative effect on labor productivity of the subcontractor. Late vendor deliveries, fabrication or construction errors, and out-of-sequence deliveries plagued each of the three projects. On two projects, there were work stoppages because there were no materials. Unsequenced deliveries caused unnecessary crane movements and rework. On the third project, the output of the fabrication shop was not compatible with the output of the erection crew. The baseline productivity was calculated, and the loss of labor efficiency in each case was estimated to be 16.6, 28.4, and 56.8%. These percentages were compared with similar percentages calculated from other published articles that described inefficient site storage conditions and delivery methods. The labor inefficiencies caused by material management range from a low of 5.4% to a high of 56.8%. The schedule slippage on the three case study projects was estimated to be between 50 and 129%.     

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.     

Factors Affecting Construction Project Outcomes: Case Study of Vietnam

Due to the demand for built products from foreign investors and the growing economy, Vietnam’s construction industry experiences strong growth. While some of the construction projects are successfully executed, others faced difficulties. The aim of this study is to examine the factors that lead to successful outcomes in construction projects in Vietnam. Using the case study research design, three successful projects and another three unsuccessful projects were investigated. Data were collected from face-to-face interviews with several project participants in each project and archival data. The results show that major enablers that lead to project success are foreign experts’ involvement in the project, government officials inspecting the project, and very close supervision when new construction techniques are employed. A factor which leads to poor performance is the lack of accurate data on soil, weather, and traffic conditions. The findings may be useful to construction professionals operating in Vietnam to put in place factors that can lead to good project performance. For foreign practitioners entering Vietnam’s market, the study may assist them in focusing on the more important factors to achieve good project outcomes.     

Relationship between Automation and Integration of Construction Information Systems and Labor Productivity

Information technology (IT) has been used to increase automation and integration of information systems on construction projects for over two decades. However, evidence that overall costs have been reduced or project performance has been improved with IT in construction is limited and mostly focused on application specific studies. A comprehensive understanding of the relationship between IT and project performance helps industry practitioners better understand the likely outcomes of implementation of IT application and likewise benefits researchers in improving the effectiveness in their IT development efforts. An opportunity to examine new evidence exists with the emergence of the Construction Industry Institute’s Benchmarking and Metrics database on construction productivity and practices. This article presents an analysis of that data to determine if there is a relationship between labor productivity and level of IT implementation and integration. Data from industrial construction projects are used to measure the relationships between the automation and integration of construction information systems with productivity. Using the independent sample t-test, the relationship was examined between jobsite productivity across four trades (concrete, structural steel, electrical, and piping) and the automation and integration of various work functions on the sampled projects. The results showed that construction labor productivity was positively related to the use of automation and integration on the sampled projects.     

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.     

Sequence Planning for Electrical Construction

The sequences in which work is completed bear significantly on the performance of electrical contractors in building construction projects. When project work sequences are poorly planned or poorly executed, electrician constructors often must contend with compressed schedules, trade stacking, and out-of-sequence work to ensure timely completion of a project. This paper analytically evaluates the importance of sequence planning to efficient electrical work. It describes changes that were made to crew-level planning procedures for an electrical contractor and the impact these had on crew performance. The analysis shows that sequence planning at both the project level and the crew level are important to the performance of electrical crews. Most notably, a strong correlation (0.73) was detected between crew planning performance one week and crew productivity performance in the following week. Results of the study are provided. Principles of sound sequences and guidelines for sequence planning are also captured from the analysis. These sequence guidelines are designed to avoid, where possible, the often adverse project conditions in which electrical contractors find themselves and to handle those conditions most effectively when they cannot be avoided.     

Leader Orientation of Construction Site Managers

This article briefly reviews the ways in which leadership is conceptualized and taken into consideration in the context of construction projects. Data are presented that derive from a study of 43 site managers in England and Wales and that take Fiedler's Contingency Model as the point of departure. The results indicate that variations in leader orientation have an impact on project effectiveness and that this relationship is contingent upon a number of factors, including project length, value, and the extent of reliance on sub-contract labor. In particular, the results indicate that an emphasis on relationships in site managers' leader orientations is more likely to enhance project performance than an emphasis on tasks. The implications of these findings for the study of construction management are examined.     

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.     

Web-Enabled System Dynamics Model for Error and Change Management on Concurrent Design and Construction Projects

Construction projects are uncertain and complex in nature often because of iterative cycles caused by errors and changes. These errors and changes impair project performance and, consequently, cause schedule and cost overruns to be prevalent. Iterative cycles are more detrimental when design and construction are concurrent and often force activities to proceed without complete information. In an effort to address this issue, this paper presents the information technology aspect of the dynamic planning and control methodology (DPM), which provides a mechanism that will analyze the impact of negative iterative cycles on construction performance. In order to guarantee a smooth application of this method to real-world projects, DPM has been developed by integrating several existing methods around a core system dynamic model for quality and change management and then implementing these methods into a web-based collaborative environment. A case project, applying the developed web-based DPM, shows great potential in facilitating on-site decision making by virtue of its support of data analysis as well as real-time information sharing.     

Linear Programming Approach to Optimize Strategic Investment in the Construction Workforce

The construction industry in the United States and other parts of the world has been facing several challenges, including a shortage of skilled workers. A review of the relevant body of knowledge indicates that one of the key reasons for this problem is the absence of human resource management strategies for construction workers at project, corporate, regional, or industry levels. This paper addresses the issues of workforce training and allocation on construction projects. It presents a framework to optimize the investment in, and to make the best use of, the available workforce with the intent to reduce project costs and improve schedule performance. A linear program model, entitled the Optimal Workforce Investment Model, is built to provide an optimization-based framework for matching supply and demand of construction labor most efficiently through training, recruitment, and allocation. Given a project schedule or demand profile and the available pool of workers, the suggested model provides human resource managers a combined strategy for training the available workers and hiring additional workers. The input data to the proposed model consists of a certain available labor pool, cost figures for training workers in different skills, the cost of hiring workers, hourly labor wages, and estimates of affinities between the different considered skills. The objective of the model is to minimize labor costs while satisfying project labor demands. Results from application of the model to typical situations are presented, and recommendations for future developments are made.     

Integrated Methodology for Project Risk Management

This article presents a generic project risk management process that has been particularized for construction projects from the point of view of the owner and the consultant who may be assisting the owner. The process could also be adapted to the needs of other project participants, and many points referred to in the article can be directly applied to them. Any project risk management process must be tailored to the particular circumstances of the project and of the organization undertaking it. First, the article explains a complete or generic project risk management process to be undertaken by organizations with the highest level of risk management maturity in the largest and most complex construction projects. After that, factors influencing possible simplifications of the generic process are identified, and simplifications are proposed for some cases. Then the application to a real project is summarized. As a final validation, a Delphi analysis has been developed to assess the project risk management methodology explained here, and the results are presented.     

Reliability and Stability Buffering Approach: Focusing on the Issues of Errors and Changes in Concurrent Design and Construction Projects

This paper proposes a new buffering approach, reliability and stability buffering, as a means to reduce uncertainty caused by errors and changes, in particular, when concurrent design and construction is applied to an infrastructure project. The proposed buffering provides a proactive mechanism to protect the planned performance of a project with a flexibly located and systemically sized buffer. For its implementation, the reliability and stability buffering is incorporated into a dynamic design and construction project model, which simulates the impacts of errors and changes on design and construction performance and evaluates the effectiveness of the proposed buffers. Applying this buffering approach into the infrastructure project in Massachusetts, this paper concludes that (1) the amount of hidden errors and latent changes was reduced; (2) the flexibly located and distributed buffers helped identify the predecessors’ errors and changes in concurrent design and construction; (3) the impacts of hidden errors and changes were minimized, preventing their ripple effect on the succeeding activities; and (4) the quality of the coordination process was increased. Thus it shows great potential to protect design and construction performance against uncertainty in concurrent design and construction delivery of civil infrastructure projects. Such benefit obtained from the proposed buffering should be relevant to researchers and practitioners because it provides the base for future investigation for the strategic utilization of schedule buffers in an uncertain environment as well as the guideline for their effective use in practice.     

Benchmarking Studies on Construction Safety Management in China

This paper presents information by which to measure safety management performance on construction sites. In China, the conventional construction safety benchmarking approach is to assess safety performance by evaluating the physical safety conditions on site as well as the accident records, while no attention has been paid to the management factors that influence site safety. This paper is to identify the key factors that influence safety management and to develop a method for measuring safety management performance on construction sites. Based on the survey and interview data collected on safety management factors in 82 construction projects in China, the safety management index as a means to evaluate real-time safety management performance by measuring key management factors was developed. The quantified factors were compared with the commonly accepted physical safety performance index, which was derived from inspection records of physical safety conditions, accident rates, and the satisfaction of the project management team. Multifactor linear regression was conducted and the result indicates that safety management performance on site is closely related to organizational factors, economic factors, and factors related to the relationship between management and labor on site. Based on this benchmarking study, a practical safety assessment method was developed and then implemented on six construction projects. The results show that this method can be an effective tool to evaluate safety management on construction projects.