October 2024 - Page 8 of 9 - Elevate Constructionist

How To Manage A Construction Budget As A Project Manager

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 8 min

Do you want to know how you, as a project manager, can use your budget to foresee potential challenges the same way a superintendent uses a schedule? Are you eager to learn the key steps, mindset, and techniques to maintain safety while doing so? You’re in the right place! Let’s dive in.

10 Key Considerations for Budget Management

In this blog, I’m going to share 10 key considerations for managing a construction budget effectively. These tips will guide you through planning, execution, and continuous monitoring.

1. Importance of Detailed Budget Planning

Planning is the foundation of every successful project. At my construction company, Linville, we’re currently immersed in a detailed budgeting process. We’re working through production and logistics plans to ensure our general conditions and requirements align with our goals.

This process includes analyzing the design, gathering competitive bids, and working with trade partners. Having a well-thought-out budget, supported by accurate assumptions and comps, makes all the difference.

2. Understanding the Scope & Selecting the Right Contractor

When creating a project budget, it’s essential to ensure that you’re scoping out and selecting the right contractor, not just the lowest bidder. It’s vital to consider the potential for change orders and schedule delays, which can significantly increase costs. Choose contractors who offer a balance of cost-effectiveness and reliability. Scoping contracts thoroughly can help mitigate risks and keep contingencies in check.

3. Having an Effective Procurement System

An effective procurement system is crucial for keeping costs under control. Ensure that materials are procured in time to avoid delays and expedited shipping fees. By collaborating with trade partners early in the process, you can make timely decisions that keep your project within budget and on schedule.

4. Continuous Budget Monitoring

Budget monitoring must be continuous. It’s not just about reviewing the job cost report but examining every aspect of the budget—subcontracts, labor gains, contingency funds, and fee opportunities—on a weekly basis. Partnering with superintendents and project executives in regular reviews helps ensure that the budget aligns with the project’s progress.

5. Effective Change Order Management

Change orders are inevitable in construction projects. It’s essential to track them immediately and determine whether they impact the contingency budget or overall project cost. Even potential change orders should be projected financially to avoid unexpected impacts later in the project.

6. Cost Control Measures

Cost control is about more than just sticking to the budget. You need triggers in place to identify when you’re approaching budget limits. These triggers help you adjust and avoid overspending, ensuring that all budgeted costs are appropriately tracked and managed.

7. Effective Communication

Communication is vital for effective budget management. Team members need to be aware of risks and opportunities that could impact the project’s finances. Regular discussions about budget strategy, risks, and savings should be part of your team meetings. Ensuring that everyone understands the financial implications of their decisions will lead to more cost-effective outcomes.

8. Risk Management

Risk management should be a constant focus throughout the project. Create a risk register based on previous projects and assign realistic dollar amounts to potential risks. By identifying and addressing risks early, you can motivate your team to minimize their impact through strategic planning.

9. Utilizing Technology

Leveraging technology in budget management is a no-brainer. Ensure that your budget tracking systems are up-to-date and seamless. While Excel may be a familiar tool, it can be prone to errors in formulas. Use reliable project management software to avoid costly mistakes.

10. Proper Audit & Review

Regularly auditing and reviewing your budget on a monthly basis will help ensure that your financial projections remain accurate. Digging deep into the details of your budget allows you to adjust your strategy as necessary and keep the project on track financially.

Conclusion

In conclusion, managing a construction budget requires attention to detail, continuous monitoring, and effective communication. By implementing these key considerations, you’ll be able to navigate your projects with confidence, ensuring that they remain financially viable while meeting deadlines.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here)
-Listen to the Elevate Construction podcast: (Click here)
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

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What Is The Role Of A Project Manager In Planning?

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 9 min

In this blog, we’re diving into the specific steps you, as a project manager, need to take when planning a construction project. Planning is multifaceted, and while I’ve covered the broader planning process in other posts, today, we’ll focus on your unique role in ensuring a successful outcome.

You’re balancing numerous responsibilities, and understanding when and where to zoom in during planning will make a world of difference, especially when managing superintendents and other key stakeholders. Let’s break it down.

1. Overseeing Project Scope Definition

Your primary task as a project manager begins with defining the project scope. This means thoroughly understanding the owner’s vision and expectations and determining what will satisfy them. During the pre-construction phase, you’ll begin by creating a proposal and conducting an interview.

Once that’s established, you’ll move on to developing a macro-level strategy during the concept schematic design phase, setting the parameters to guide the project forward. From budgeting and constructability reviews to ensuring deliverables are dialed in before the project officially kicks off, your involvement in scope management will continue throughout each phase.

2. Brokering Resources for Success

You are, in a sense, brokering resources at various points in the project. Early on, you might rely on your Virtual Design and Construction (VDC) team or input from a general superintendent. As the design develops, you’ll need to bring in builders, assistant superintendents, general foremen, and trade partners. The goal is to break everything down by time and location, ensuring your logistics, risk registers, and key planning documents are on point.

3. Reviewing General Conditions and Requirements

It’s your responsibility to ensure that general conditions and requirements align with the overall project strategy. As the project moves forward, you’ll make sure logistical considerations and budget needs are reflected properly. The goal is to ensure that any special budgetary needs are priced correctly and integrated into the overall plan.

4. Anchoring Plans and Mitigating Risks

As the team works on developing the production plan, you’ll constantly anchor it to other projects, helping to identify and mitigate risks. A solid plan must undergo continuous critique and review to ensure risks are minimized. Whether through miniature reviews throughout the process or a fresh set of eyes before final approval, risk management is crucial.

5. Aligning the Supply Chains

You’ll always be working backward from the phases of your plan, ensuring that procurement aligns with the overall strategy. From tracking lead times and managing deliveries to coordinating submittals and buyouts, you must ensure the supply chain is linked with construction timelines.

6. Managing Resources Effectively

You’ll constantly broker resources throughout the planning process, from conceptual estimates in the design phase to leveraging software, trade partners, or additional support to ensure the production plan is sound. It’s about asking, “What do you need?” and securing the necessary resources for success.

7. Planning for Quality

Quality is a crucial component of project planning. As a project manager, you must account for the owner’s quality requirements in the plan. Whether it’s managing specialized concrete installations or intricate forming systems, ensuring that the necessary time and effort are factored into the schedule is essential to maintaining high standards.

8. Ensuring Plans are Visually Formatted

The planning documents should be visually formatted and easy to present, whether on a screen or wall. Clear visual documentation helps align the team and stakeholders with the project’s goals.

9. Keeping Stakeholders Informed

Throughout the planning process, it’s your job to keep stakeholders informed. Whether it’s the owner or other decision-makers, you must ensure that the communication is ongoing, clear, and supported by visual formats that everyone can understand.

10. Securing Permissions and Approvals

Finally, securing necessary permissions and approvals is vital to ensure the smooth progression of the project. From permits to financial approvals, everything must be in place to allow work to flow seamlessly.

These ten steps may seem like a lot, but I’ve provided a structured approach to help you implement them in your planning process. If you find yourself needing additional support, don’t hesitate to reach out. We offer consulting services specifically tailored to assist you in your role, ensuring your project’s success.

If you need further guidance or have any questions, feel free to contact us. Let’s work together to elevate your project planning game!

If you want to learn more we have:

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How Do Construction Project Managers Work With Clients?

Posted on October 1, 2024October 15, 2024 by Danny Jiménez⁩

Read 9 min

How do construction project managers work effectively with their clients? I once heard a quote that resonates deeply: “Superintendents see the future, and project managers read the owner’s mind.” This perfectly encapsulates the relationship between a construction project manager and the client. But how do you develop this relationship? What are the key areas to focus on, and what mindset should you adopt?

In this blog, I’ll guide you through 10 critical considerations for building a strong relationship with your primary client interface. Along the way, I’ll also share a personal story that emphasizes the importance of perspective and how you can avoid common pitfalls. Let’s dive in!

Shifting Your Perspective as a Project Manager

Early in my career, I worked with a remarkable project manager at a university in Tucson. At first, I felt overwhelmed by the high standards and nit-picky requirements from the client—everything from the fence’s color to paperwork details seemed scrutinized.

I felt victimized and often complained behind closed doors. But then, the director of construction sat me down and asked me to view things from their perspective.

I learned that for them, even minor issues could escalate into major problems involving multiple departments—facilities, public affairs, and even the university’s upper leadership. It dawned on me that I wasn’t just a contractor; I was an extension of their team.

This realization changed my entire approach. Instead of feeling burdened by their demands, I sought to understand their concerns and find solutions. This shift in perspective made all the difference in fostering a positive working relationship.

10 Key Considerations for Building Client Relationships

Here are the top 10 considerations to help you cultivate strong, successful relationships with your clients:

1. Clear Communication

This may sound basic, but we often underestimate the importance of clear communication. Regular text messages, phone calls, clear visuals, and updates are crucial. Whether it’s through newsletters, emails, or real-time problem notifications, ensure that communication is frequent and transparent.

2. Establish Trust and Build Relationships

Trust doesn’t appear out of thin air—it must be intentionally cultivated. On one project, we held a pre-construction kickoff meeting to build camaraderie with the client and architect. Throughout the project, we continually referred back to the goals we set in that meeting, reinforcing trust and maintaining strong relationships.

3. Understand the Client’s Vision and Requirements

Know your client’s top priorities, which might include design elements, functionality, or specific concerns. Familiarize yourself with their top 10 concerns—understanding these can help you anticipate their needs and exceed expectations.

4. Be Flexible and Adaptable

Projects are dynamic, and your ability to adapt is critical. On one of my projects, we prided ourselves on being nimble and adaptable. The client appreciated this, and it became a significant factor in our success.

5. Deliver Quality Assurance and Control

Nothing builds client confidence more than delivering a high-quality product. Quality should be at the forefront of your efforts, ensuring that you consistently meet or exceed their standards.

6. Manage Budgets and Schedules Transparently

Keep your budget and schedule management clear and accessible. Present them in formats that the client understands, emphasizing key points rather than overwhelming them with data. This transparency will assure your client that the project is progressing smoothly.

7. Proactively Manage Risks

Clients appreciate knowing that you’re actively identifying and addressing risks. Be proactive in demonstrating that you have a clear understanding of potential risks and show them the steps you’re taking to mitigate them.

8. Involve the Client

Involve your client in decisions and progress updates. A client who feels included is less likely to become contentious. By engaging them early and often, you create a partnership that fosters trust.

9. Resolve Conflicts Professionally

Conflicts are inevitable, but how you handle them will define your relationship with the client. Aim for healthy conflict resolution by finding win-win solutions and maintaining a professional demeanor throughout.

10. Provide Post-Project Assistance

Your relationship with the client doesn’t end when the project is completed. Stay involved during the transition phase to ensure a smooth handover and address any concerns they may have.

Final Thoughts

Building and maintaining strong client relationships requires effort, adaptability, and clear communication. By adopting the right mindset and following these key considerations, you can create a partnership that leads to successful project outcomes and satisfied clients.

Remember, it’s not just about delivering a project—it’s about becoming an integral part of the client’s team and understanding their unique needs and concerns. Keep these tips in mind, and you’ll find yourself fostering deeper, more meaningful relationships that will benefit you throughout your career.

If you want to learn more we have:

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Project Success 101: IPCS™ – The Plan

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 9 min

In this blog, I’m going to talk about the planning portion of the integrated production control system that ensures foremen and workers get what they need from a plan and expectation standpoint. So, if you want to know how to effectively deliver the plan to your crew, you’re in the right place.

If you want to learn how to set up your company so that trades can follow that plan, then keep reading. And lastly, if you want to know how to manage your risks, you’re going to love this blog. Let’s dive in.

Supporting Your Foremen & Workers

This blog pulls together several concepts we’ve discussed before. In the integrated production control system, the first key element is the team. When you have a balanced team with the capacity to support crews in the field, you’re able to create a support network for foremen and workers as they install their work packages.

We’ve covered this in another blog, which you can easily search for, but now let’s move on to the second part of the formula: the plan.

Workers need more than just a support system—they need a clear understanding of the plan. Here’s how you make that plan with your trade partners, and why it’s so crucial for the success of your project.

Benefits of Creating a Macro-Level Takt Plan

When you’re in the planning process, you should be developing a macro-level takt plan. This is different from traditional scheduling methods like CPM schedules or Gantt charts, which are not production-friendly.

A macro-level takt plan focuses on keeping the project on a five-day takt time, so your team can easily see the overall strategy, including the start and end dates. This provides a structured plan that you can review with your team to ensure a solid approach to the project.

How to Calculate the Duration of a Phase

Using a simple but effective formula—Takt wagons plus takt zones, minus one, multiplied by takt time—you can calculate the duration of each phase of the project.

This calculator helps you determine how many zones you should have, so you can optimize your phase time while still taking care of your trade partners. For example, using six zones might shorten the phase time but still provide your partners with the support they need.

How to Create a Pull Plan from the Zones

Once you’ve determined the number of zones, the next step is to pull-plan that sequence with your trade partners. This collaborative effort ensures that the project stays aligned with the overall macro-level takt plan.

By doing this, you’ll be able to create what’s called a norm-level takt phase. This is where trades work in sequence with the correct amount of buffer to meet project milestones. This collaborative planning is essential for keeping the project on track.

How to Use Your Norm-Level Schedule

With the norm-level schedule in place, you’re now able to conduct look-ahead planning and weekly work planning. These practices allow you to forecast potential roadblocks and make sure work is ready to proceed.

Filtering down from this broad view, you’ll be able to plan daily tasks that can be communicated clearly to your workers. This daily communication is where the “rubber meets the road,” ensuring the entire project flows smoothly from start to finish.

Importance of Including Lean in Contracts

A crucial step is to ensure that your company’s contracts include lean behaviors. Even if your foremen and workers are aligned with the plan, their success depends on whether their company supports these lean practices.

Ensuring that lean behaviors are written into contracts—such as participating in afternoon foreman huddles or maintaining clean, safe work areas—helps create an environment where trades can succeed. Without this, trades might face pushback from their companies, causing disruptions to the project.

Key Things to Look for in Your Schedule & Plans

To ensure success, you should constantly be looking for potential risks, constraints, and roadblocks. Collaborate with trade partners to address any anchors (issues from past projects that could resurface), as well as unique risks to the current project.

Keep an eye out for constraints, which could be permanent or semi-permanent factors you’ll need to work around. Regularly addressing these four elements helps maintain a steady workflow.

Summary of the Planning Process in the IPCS

To summarize, you need a solid plan that your trade partners can follow. Your company must be obligated to support this plan, ensuring that all involved parties collaborate effectively. Finally, you must continuously manage risks to keep the project flowing as seamlessly as possible.

This blog condenses complex project planning techniques into actionable insights for construction professionals, focusing on innovative approaches to ensure smooth production.

If you want to learn more we have:

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Project Success 101: IPCS™ – The Team

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 8 min

In this blog, I’ll discuss a critical component of what we call the Integrated Production Control System™—a system designed to empower your team to succeed while supporting all activities at the crew level on the project side.

Curious about how to build a strong, balanced team that effectively supports your project? Want to know how to excel in your role as a leader? You’ve come to the right place. Let’s dive into these essentials.

The Core of Construction: Integrated Production Control System™

This is what excites me the most! In this blog series, I’ll break down the Integrated Production Control System™ and how it sets up teams for success.

In construction, the typical process often starts with designing and then figuring out how to build it. However, what we should really be doing is ensuring that our foremen and workers have everything they need to complete each task within their allocated zone and timeframe.

This system relies on several factors: materials, personnel, information, tools, equipment, layout, and permissions. The essence of successful construction is ensuring the crew can install the work packages seamlessly and maintain a consistent workflow.

Key Elements of the Integrated Production Control System™

To achieve this, the crew needs a few critical components:

Team Support
A Robust Plan
A Well-Managed Supply Chain
Positive Culture
Appropriate Training

The Integrated Production Control System™ provides all these components, allowing foremen and their crews to perform effectively. Now, let’s focus on how to build and balance the team while showing up as an effective project leader.

Three Key Components of Every Successful Construction Project

Every team, when supporting a foreman and their crew, must have three essential elements:

A Multiplier Leader:
This leader builds the team, manages difficult conversations, coaches and mentors direct reports, holds productive meetings, and scales clarity across the board.
Team Behaviors:
Successful teams exhibit five behaviors:
- Trust
- Healthy Conflict
- Setting Goals & Standards Together
- Accountability
- Performance
Strenuous Performance Goals:
A high-performing team must always have a clear target to achieve. When these three components are missing, the project suffers.

How to Balance Your Team in Construction

Once the team is in place, you must ensure it remains balanced and capable of supporting the foreman and crew by clearing roadblocks and providing necessary information. Here are two important strategies:

Coverage Schedule:
Each job site must have an intentional coverage plan. This means knowing who’s handling tasks like opening gates, working late, or covering for others when they’re unavailable. Without this, key roles like the superintendent or field engineers risk burnout.
Tracking PTO:
Keeping a calendar that tracks when team members take time off ensures there’s adequate coverage at all times. No task should fall through the cracks because of overlapping absences.

How to Manage Your Own Personal Organization System

In order to support the foreman and crew effectively, you need personal balance and organization. Here’s how to do that:

Time Blocking:
Plan your day with intentional time blocks for meetings, tasks, and everything in between. Your day should be structured around your goals, with buffers for unplanned events.
Leader Standard Work:
This is a routine set of actions you do for yourself, your family, and your role. Combined with a detailed to-do list, this will ensure you’re always prepared for the day ahead.
Morning Routine:
An effective morning routine sets the tone for your day. Organize your tasks based on Leader Standard Work, create a to-do list, and stick to your plan. Doing so will save you hours and give you the capacity to better support your crew.

Summary: Three Key Habits for Project Success

To wrap up, remember these three essential habits:

Build a team with the right leader, behaviors, and performance goals.
Balance your team by ensuring adequate coverage and tracking PTO to prevent burnout.
Maintain your own personal organization system to create time for supporting the field crews.

These strategies form the backbone of a successful construction project and, more importantly, set your team up to win.

Stay tuned for more insights and resources on these topics. And don’t forget, as part of this system, we’re always focused on supporting the foreman with the crew to install work packages effectively in the field.

I hope you’re able to implement these concepts and that you found this blog helpful. Let’s keep building successful projects—together!

If you want to learn more we have:

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How To Use Scrum In Construction Management

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 10 min

In this blog, I’m excited to share one of the most impactful systems that has revolutionized my approach to lean construction scheduling—Scrum. You may have heard of Scrum in the context of software development or product management, but I’m here to tell you how it can be a game-changer in the construction industry.

Scrum has transformed how we manage timelines, productivity, and collaboration on construction projects. After taking Felipe Engineer’s Scrum course, I fully understood how to effectively apply it to my projects. If you’re curious about how this method works and how you can leverage it for construction, you’re in the right place.

What is Scrum?

Scrum is not as complicated as it might seem. It’s a framework that relies on three specific roles:

Product Owner: This person represents the voice of the customer, sets the product vision, and establishes priorities. In construction, this role translates to someone who deeply understands what the client wants and ensures that the project’s direction aligns with their needs.
Scrum Master: This role is focused on leading the team as a servant leader. The Scrum Master facilitates communication, resolves roadblocks, and continuously encourages improvement.
Developers (Team Members): These are the individuals with hands-on experience, whether they’re software developers or construction workers. In construction, these are the folks on-site, doing the physical work to bring the project to life.

In small teams, the Scrum Master helps build cohesion, while the Product Owner remains the constant link to the customer. The developers, or team members, execute the work—be it pouring concrete or setting up scaffolding.

Key Events in the Scrum Framework

Scrum follows a sequence of events that ensures the project stays on track:

Sprint: A sprint is a fixed period during which a specific set of tasks are completed. For construction, I prefer one-week sprints, aligned with our weekly work plans.
Sprint Planning: Before the week begins, we conduct sprint planning. We start by identifying tasks from the project backlog and moving them into the sprint backlog, setting our priorities for the week. The goal is to break down the project into manageable pieces and ensure the team knows exactly what to focus on.
Daily Huddle: Every day, we gather for a quick check-in. This is a fun, collaborative moment where the team updates each other on progress, raises concerns, and adjusts as needed. One tool we use here is the burndown chart—it helps us track how much work has been completed versus what still needs to be done.
Sprint Review: At the end of each sprint, we review our accomplishments. Did we meet our goals? How much of the project did we complete? This reflection helps us understand our performance and plan for the future.
Retrospective: The final step is reflecting on how well the team functioned. Did we communicate effectively? Were there any roadblocks that slowed us down? What can we improve for the next sprint? This step ensures continuous improvement, keeping the team dynamic and adaptable.

Scrum Tools: Scrum Board and Burndown Chart

Two essential tools in the Scrum framework are the Scrum Board and the Burndown Chart. The Scrum Board visually organizes tasks across four categories: backlog, sprint backlog, in progress, and complete.

This allows the team to track the flow of work throughout the sprint. The Burndown Chart is a metric tool that lets the team know if they are on schedule by comparing completed work against the projected timeline.

Applying Scrum to Construction

You might be thinking, “How does this work in the field?” Well, I use Scrum in various aspects of construction management. For example, during design phases or while installing complex equipment like an MRI machine, we apply the Scrum framework to streamline tasks and meet deadlines efficiently.

Additionally, we incorporate Scrum into our typical weekly meeting structure. After our Monday meetings, we implement daily huddles where the field and project teams come together to discuss roadblocks and plan for the day ahead. Any urgent issues are addressed immediately, and the rest go into the backlog for future sprints.

We also track team capacity using points, ensuring that we aren’t overloading the team and that we can deliver on our commitments. This system can be applied to both physical and virtual Scrum boards, depending on what works best for your team.

Elevating Productivity with Scrum

Scrum has brought efficiency, clarity, and collaboration to my construction projects. Whether in team meetings, individual task management, or balancing work-life demands, Scrum helps us deliver faster and smarter.

I highly recommend checking out Felipe Engineer’s book Scrum: How to Do Twice the Work in Half the Time and exploring Scrum tools to further enhance your construction management techniques.

In conclusion, Scrum is not just for tech; it’s an amazing system that applies to all areas of construction. By following the framework—roles, events, and tools—you can optimize your scheduling, enhance teamwork, and deliver better results in a shorter time frame.

If you want to learn more we have:

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What Is The Biggest Delay In Construction? Material Procurement!

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 10 min

One of the biggest challenges many in the construction industry face is material procurement delays. If you’ve worked in construction long enough, you’ve likely experienced this issue firsthand.

The frustration of not having materials on time can throw off schedules, budgets, and project momentum. In this blog, we’ll dive deep into understanding the root cause of these delays and how to manage them effectively.

What is the Real Issue Behind Delays?

The most common culprit of delays is the unavailability of materials when they are needed most. But what is the real cause behind these delays?

The truth lies in a combination of market fluctuations, overproduction, and poor planning within the supply chain. Understanding the underlying systems is the key to overcoming these challenges.

The Importance of Systems Thinking

In construction, we often focus on quick fixes—adjusting schedules, placing early orders, or doubling up on purchases—but these solutions don’t always work. That’s because construction operates within a complex system.

In The Fifth Discipline, the author introduces the concept of “systems thinking,” which emphasizes the interconnectedness of all processes, actions, and decisions. Much like in construction, where every decision affects the bigger picture, systems thinking pushes us to see beyond individual fixes and focus on the entire supply chain.

For example, the famous “beer game” illustrates how market variations can cause overproduction and supply chain disruptions. A sudden spike in demand for a particular type of beer leads retailers to over-order.

As these orders pile up, the manufacturers struggle to keep up, resulting in bottlenecks, delays, and eventually, an overstock that nobody wants. This same cycle often happens in construction when contractors panic and over-order materials due to anticipated delays. Instead of smoothing the process, this reaction compounds the problem and leads to even greater supply chain instability.

The Construction Supply Chain and Panic Ordering

It wasn’t just the COVID-19 pandemic that threw supply chains off course. It was also our collective reaction to it. Factories shut down, supply capacity was reduced, and contractors panicked, leading to the same over-ordering seen in the beer game.

Contractors placed orders far earlier than needed and in much larger quantities, thinking it would safeguard them from delays. But in reality, this created backlog and further delayed materials, which worsened the problem.

To combat this, it’s crucial to adopt a more stable mindset and make appropriate, right-sized orders based on proper planning and accurate scheduling. The panic mindset must be avoided if you want to keep your projects on track.

Strategies to Reduce Procurement Delays

The good news is that there are proven strategies to minimize these procurement delays. Based on insights from Built to Fail by Todd Ziebell, here are some tips:

Eliminate Unnecessary Bureaucracy: Too much paperwork and inefficient processes slow down procurement. Streamline your workflow by ensuring that submittals, designs, and orders are accurate and double-checked. Reduce any unnecessary layers of approval or documentation.
Value Stream Management: This approach allows you to visualize the entire material flow—from the moment of order to delivery at the job site. By mapping out each step, you can identify areas where non-value-adding activities exist and eliminate them. Focus on what truly adds value to your project, whether it’s reducing paperwork, eliminating redundant processes, or cutting down on transportation delays.
Strategic Partnerships: Build relationships with vendors to reduce lead times. Creating strategic partnerships with reliable suppliers helps ensure consistent delivery times, reduces variability, and enhances collaboration. These partnerships foster better communication and trust, which can help smooth over issues when they arise.
Understand the Difference Between Lead Time and Cycle Time: Often, there’s a discrepancy between the lead time quoted by a vendor and the actual cycle time required to produce the materials. Ask critical questions: Is the delay due to market conditions, a vendor backlog, or simply a buffer time built into the lead time? Understanding these nuances can help you better manage your expectations and plan accordingly.

Final Thoughts on Managing Delays

Material procurement delays are a significant challenge in construction, but they are not insurmountable. The key is to start early, manage the process consistently, and stay on top of the details.

Proper planning, value stream mapping, and strong relationships with vendors will help you right-size your orders and reduce unnecessary waste. These steps ensure you maintain a balance between having enough inventory and avoiding overstock, which can be just as damaging to your project as delays.

By implementing these strategies and embracing a systems-thinking mindset, you’ll be well on your way to minimizing delays and keeping your construction projects on track.

Stay ahead of the game and create efficiency in your projects by following these proven techniques. Success is just a plan away.

I hope you found this blog post helpful and can use these strategies on your job sites. Let’s work together to minimize delays and create smoother, more efficient projects. Keep checking back for more tips and tricks on improving the construction process!

If you want to learn more we have:

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Worried About Your Construction Project? Here’s Why It’s Not Finished Yet!

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 10 min

Worried about your construction project? Wondering why it’s taking longer than expected? In this blog, we’ll explore why most, if not all, construction projects that rely on the Critical Path Method (CPM) often run into issues around the two-thirds mark, leading to delays and frantic recovery efforts. We’ll also provide insight into why trades are stacked and burdened, the problems this causes, and what alternative approaches can be taken.

The Issue with CPM Scheduling

When it comes to project scheduling, many teams use the Critical Path Method (CPM), bar charts, or similar scheduling methods that aren’t time-by-location based. This often creates a disconnect between planned trade flow and actual project execution.

In contrast, scheduling methods like Takt, which means rhythm or beat, focus on maintaining a steady trade flow through predefined zones of the project.

When CPM scheduling is used, we often find ourselves rushing toward deadlines, stacking trades, and burdening crews in an attempt to stay on schedule. This results in inefficiencies, delays, and a chaotic project environment.

The Disadvantages of CPM Scheduling

In a typical CPM schedule, time runs across the top of the chart, and deliverables are listed on the left. The method involves tying sequences together in a logical manner to determine the longest path to project completion, known as the critical path.

Unfortunately, this critical path is constantly changing, making it difficult to stay on top of project progress. The more activities and dependencies you add, the more complex the schedule becomes—often leading to confusion, delays, and inefficiencies.

Even worse, CPM doesn’t offer a solution to the problem. The only recourse is to either add resources or extend the project timeline—both of which can cause further complications. When you try to add resources beyond what’s actually needed, you end up extending the project even more, compounding the delays.

Trade Stacking and Burdening

One of the most harmful side effects of CPM scheduling is trade stacking, which occurs when multiple trades are forced to work simultaneously in several locations on-site. For example, a trade might be expected to work in ten different areas with only one crew.

This leads to inefficiencies, as the crew simply doesn’t have the capacity to meet these demands. The result is a delay in progress, as the crew struggles to keep up with the workload. As the project progresses, the effects of trade stacking become more pronounced, creating a cascading effect of delays and inefficiencies that further prolong the project.

How CPM Causes Delays and Chaos

The rush to complete projects on time often starts at the beginning, with crews being pushed to work faster. However, this causes delays right from the start, leading to a domino effect where more resources are added to recover lost time, exacerbating the problem.

Schedulers and supervisors start to dissolve logic in the schedule, trying to cram more work into already strained timelines. By the two-thirds point of the project, it’s clear that things have gone off track, and trades are being stacked and burdened more than ever.

By the time you reach this critical point, the project is in chaos. The increased workload exceeds your team’s capacity to complete the work efficiently, leading to a crash landing. The result is a significant amount of wasted resources, money, and time, with morale and productivity plummeting across the board.

Avoiding Project Delays: What You Should Do Instead

So, what’s the solution? The key lies in adopting Takt planning techniques and avoiding the pitfalls of CPM scheduling. Takt scheduling focuses on creating a smooth and steady flow of work, ensuring that trades can operate efficiently and in sequence. Here are some essential practices you can implement to prevent project delays:

Time-by-Location Scheduling: Always use a time-by-location format, where zones and trade flow are clearly defined and protected.
Pull Planning: At the start of each phase, engage in pull planning to ensure your sequence of work is optimized and makes sense for the team.
Level Work and Resources: Ensure that your trades and zones are leveled throughout the project to prevent stacking and overburdening.
Plan for Buffers: Incorporate buffers into your supply chain to maintain rhythm and prevent bottlenecks in your trade flow.
Look Ahead Planning: Implement six-week look-ahead planning to identify potential roadblocks early and ensure that your work is prepared and ready to execute.
Focus on Quality: Throughout the project, emphasize quality in every phase to reduce rework and ensure that your team is performing at its best.

Conclusion: Slow is Smooth, and Smooth is Fast

The key to success in construction project management is maintaining a steady, rhythmic flow throughout the project. By adopting Takt scheduling, pull planning, and maintaining a focus on quality and flow, you can prevent the delays and issues that are so common with CPM scheduling. Remember, a smooth and controlled approach will always result in faster and more efficient project completion.
Feel free to adjust any sections to match your style or specific project focus!

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A Day In The Life Of A Foreman

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 9 min

In this blog, I’m not going to talk about what typically happens on a construction site. Instead, I’ll share what a really nice pattern could look like for a day in the life of a foreman. If you want to know what’s expected ahead of the workday and how to keep your crew motivated, while also finding a win-win for you and your employer, then keep reading.

I absolutely love this topic! I previously covered a similar concept for superintendents, and it resonated with many. Now, it’s time to focus on the foreman, the second most crucial position on a construction site. Everything rises and falls on your ability to get work done. This industry is built upon your expertise, and I hope you’ll find something valuable in this blog.

Overview of the Planning Process

Before diving into a day in the life of a foreman, let’s quickly review what happens in the lead-up to the work. The process begins with understanding the work package you’re going to build. This means you have a specific timeline and set of tasks to install. To effectively manage this, you need to work backward.

1. Day Planning: The day before, you engage in day planning to ensure all preparations are in place.

2. Weekly Work Planning: A week prior, you create a weekly work plan, ensuring commitments are scheduled correctly.

3. Look-Ahead Planning: This step involves addressing roadblocks and making the work ready before you arrive on site.

4. Pull Plan and Pre-Con Meeting: Three months to three weeks in advance, you participate in a pull plan and conduct a quality pre-construction meeting. This ensures alignment on all expectations.

5. Initial Inspection: This is where you ensure everything is on track and ready for execution.

It’s vital to remember that all tasks are predicated on following a structured pattern: plan, build, and finish.

Weekly Tactical Meetings

Within this overall cycle, it’s essential not to overlook the weekly tactical meetings. These are typically referred to as trade partner meetings, where all parties come together to discuss progress and plan for the upcoming week.

During these meetings, you should have a clear plan from one week to the next, ensuring that all commitments are understood and agreed upon.

Afternoon Foreman Huddle

A critical part of the day is the afternoon foreman huddle. This meeting should occur the day before to ensure that everything is ready for the next day. Your huddle should involve confirming that you have the necessary people, tools, materials, equipment, and information in place before the workday begins.

Morning Routine: Worker Huddle and Crew Prep

In the morning, it’s crucial to start with a worker huddle. This should involve all trades on-site, allowing everyone to get aligned with the day’s objectives, safety concerns, and any critical updates. After the worker huddle, conduct a crew prep session to get everyone oriented with their tasks and responsibilities.

1. Stretch and Flex: This prepares everyone physically for the day.

2. Pre-Task Plans: Discuss quality expectations and clarify any doubts.

3. 5S Practices: Implement these to eliminate waste and organize the work area.

Daily Habits of Successful Foremen

Throughout the day, successful foremen follow three essential habits:

Stay on Plans: Regularly check and read the plans.
Align Materials: Ensure all materials are organized and ready for the crew.
Conduct Walks: Make rounds to see how the work is progressing and address any issues.

Importance of Training

Training should also be a priority. Ensure that your crew is well-prepared and that you regularly check in with each team member to uphold quality standards.

Afternoon Check-Ins

Most accidents happen after 11 AM when fatigue sets in. It’s crucial to do check-ins with your crew during the afternoon to keep them focused and organized, ensuring they are staging materials for the next day’s work.

Ideal Day Recap

In summary, an ideal day in the life of a foreman involves:

Starting the day right with worker and crew prep huddles.
Ensuring all preparations are in place for the tasks ahead.
Staying connected with the crew throughout the day, making adjustments as necessary.
Conducting training and check-ins to maintain productivity and safety.

By following these steps, you can create an effective work environment that benefits both you and your team.

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The Backbone Of The Industry: How Construction Foremen Keep Projects Running Smoothly

Posted on October 1, 2024October 1, 2024 by Danny Jiménez⁩

Read 8 min

In the construction industry, the work package is the core element that ensures projects run smoothly. This blog post delves into the importance of work packages, successful planning, and how work packages interact in a one-process flow. If you want to enhance your understanding of project management in construction, you’re in the right place!

Understanding the Work Package

When working on a construction project, it’s crucial to identify the various zones or sections within the site. The smallest divisible unit in a project is called a standard space unit, which serves as the foundation for building your work package.

Each work package will have a designated zone and a specific time duration for completion. Understanding the standard time unit, typically a day in construction, is essential for effective planning.

By knowing these units, you can aggregate the necessary information to create a comprehensive project plan that outlines the required zoning and its components.

Creating a Takt Wagon

Once you establish your zones, the next step is to determine how much work can be done in each zone within a specific takt time. Takt time helps create a rhythm for the work process.

For instance, if framing in a particular zone is scheduled for completion in three days, but the actual work takes two and a half days, it’s important to include buffer time to accommodate variations and productivity losses.

The goal is to strike a balance—having enough buffer time to avoid rushing workers, while also ensuring they remain productive and engaged. This is a fine art and serves as the backbone for effective project management.

Phasing Your Projects

After defining your takt wagons, you can progress to establishing project phases. Each phase consists of multiple zones, creating a structured flow for your project schedule. Understanding the density of work and the desired direction of flow is critical in managing these phases effectively.

It’s essential to package the work within each zone properly, ensuring that crews can fit within the takt time, allowing for efficient task completion.

The Importance of Planning and Buffering

Effective construction scheduling hinges on proper planning and risk management. Implementing a line of balance helps visualize the flow from zone to zone, incorporating buffer zones to absorb potential risks. Always plan ahead—three months for overarching planning and three weeks for detailed task planning—to identify and remove roadblocks while aligning the supply chain accordingly.

Collaborating with Trade Partners

Collaboration is a crucial aspect of construction projects. Each trade partner must bring their expertise, tools, and workforce to execute their work package effectively. The general contractor plays a vital role in providing the necessary materials, permissions, and a respectful culture that fosters collaboration.

Every team member, including trade partners and general contractors, must be well-trained, equipped, and prepared to ensure a seamless workflow.

The Central Focus: The Crew

At the heart of every construction project is the crew led by a foreman. The success of a project depends on having the right team, plan, resources, and training aligned with the takt time. Visual systems and effective communication help ensure that every crew member understands their role in the work package.

Preparing for Success

When preparing for a work package, ensure that information is organized and materials are pre-staged for easy access. Tools and equipment should be ready before work begins, allowing crews to operate efficiently.

Conclusion

Understanding and implementing these concepts is vital for improving efficiency and flow in construction projects. The key takeaway is to design production systems that allow foremen to initiate work packages smoothly, with all resources available as needed.

By transforming these concepts into actionable strategies, you can significantly improve your project management effectiveness and create a more productive work environment.

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