Why Labor Counts Matter in Construction

Why the Heck Do I Care About Labor Counts? (Question Everything in Construction)

Here’s a question that came up recently: Why don’t I fill out labor counts on pull planning stickies?

I was doing a pull plan, and I started filling out the stickies, but I didn’t fill out what people would say is the manpower. I call it labor, the labor count for the crew composition. And that is typically taught in pull planning. And I’ve typically taught it as well. So, I got called out a little bit: “Jason, why don’t you put it in there?”

And I was thinking to myself, well, for a couple of reasons, but it’s really not pertinent. And let me tell you why. I’m probably going to confuse everybody and then hopefully bring it back around because I can actually tell you why it is pertinent, but why it’s not pertinent to me.

When Labor Counts Actually Matter (Single-Train Takt vs Multi-Train Takt)

Let me give you a couple of scenarios. In single-train Takt planning, where you force more of the Takt time and packaging inside the Takt time versus multi-train Takt planning, which is more resource-based and you don’t force one single Takt time. By the way, the second is my favorite.

In the first scenario where you force crews into a Takt time, one of the biggest things that you meaning levers that you can pull to adjust the actual cycle time to fit on average well within the Takt time is to address crew composition. So having that number, meaning the labor count, would be important for that.

The Civil Crew Example (When One Missing Person Cuts Productivity in Half)

I remember working with a civil contractor. And I’m not going to get this exactly right because I’m not a civil contractor. I’m a concrete builder that happens to do a lot of work with civil in a supervisory capacity, but I’ve never actually worked the shovel on a civil crew. So, I’ll give this to you in my layperson’s terms.

On a typical civil environment, let’s say a crew is installing force main. And these are not the exact names, but let’s say you have a foreman, lead person, equipment operator. Heck, you may even have two, but let’s say you at least have one equipment operator. You have two or three pipe layers and let’s say a general laborer.

And let’s say one person doesn’t show up. Your crew productivity for that, like let’s say you have a seven-person crew and one person doesn’t show up, your productivity could actually cut in half because of the way each of the process steps work in installing the pipe. Now that’s not a really great way for me to explain. I feel kind of silly, but what I learned was it’s not like, “Oh, you lose one person from a 10-person crew, it’s a 10% loss.” It could actually be detrimental to the entire crew or cut your productivity in half. So that would be another reason to track labor.

I could keep going on and on. Obviously labor counts are one factor in the overall cycle time that we’re attempting to fit well within the Takt time. So I do get that it’s important.

The Problem: GCs Track Labor Without Clearing Roadblocks (Myopic)

But I’ve got to ask myself why it’s important to me. And let me say that most general contractors will ask for labor. When in the Last Planner System, and I think this is wrong, a lot of people teach that, “Hey, I want to know what area you’re working in,” meaning in the morning foreman huddle. They want to know where you’re working, how many people you have. The GC typically wants to track that you have the right number of people.

There’s a couple of things wrong with this. First of all, we shouldn’t be having the foreman huddle be in the morning. It should be the afternoon before. Second of all, where they’re working and how many people, they have is fairly inconsequential to the rest of the trades. And I would say probably as well, the general contractor.

And the third consideration is that it’s really not a good idea to try. It’s basically myopic. It’s incorrect to say, “Hey, if we have all of the right people on the crew, you’re going to reach full productivity.” It has more to do with, are we clearing roadblocks?

The False Assumption: Right Crew Size Equals Full Productivity

Let me give you a for instance. Let’s say the crew is supposed to have five people and the foreman says, “Yeah, we have all five people.” And then you falsely think that they’re going to make production. It doesn’t so much have to do with how many people you have in all instances. It really has more to do with, is the work made ready?

And so, it’s not something that’s ever been, let me say this: I have never, ever, ever, ever, ever seen a general contractor track whether or not crews have enough or the right amount of people and had it make any difference whatsoever with anything on the project site.

Does the GC Need to Know Labor Counts? (Probably Not)

So, I keep asking myself, why do I need to know the labor counts? Well, the other reason I would say is that it’s really up to the trade partner. Like it is their business. And unless I’m trying to help them modify or optimize their cycle time, I don’t really need to know.

So, for all of these reasons, if I think to myself, “Hey, do I need to know the labor count specifically for the pull plan?” Well, not really, because I’m probably not going to force everybody into a single Takt time. Do I need to know it so that the other trades and the superintendent can monitor it? Well, no, not really. I don’t need to know it for that reason either. And you’re like, I can go through any of the other reasons. No, I don’t really need to know.

Does the trade need to know? Yes. Do I need to know? Probably not.

The Real Question: What Outcome Are We Getting?

So I’m not going to say definitively, not that I’m the expert on anything, but I’m not going to say definitively that you don’t need to know it as a general contractor or supervisor. You definitely probably need to know it if you’re a trade partner. But I will say this: the emphasis placed on it is misguided.

And we have to really ask ourselves if we’re tracking this, what real outcome are we getting? And I think it needs to be questioned really in construction. Everything needs to be questioned. We can’t be sticking to old traditions just because this is the way we’ve always done it.

Many of the things that we do make absolutely no sense. It may be like a composite cleanup crew where it’s actually the worst thing you can do. And it never should have been invented in the first place.

Here’s when labor counts matter and when they don’t:

• Labor counts matter for trades optimizing cycle time: If you’re forcing crews into single-train Takt time, crew composition is a lever to adjust cycle time to fit within Takt time. Civil example: 7-person crew loses one person, productivity cuts in half because of process steps. Trades definitely need to know labor counts.
• Labor counts don’t matter for GC tracking without roadblock removal: Most GCs ask where you’re working and how many people you have in morning foreman huddle (should be afternoon before). This is myopic. Having right number of people doesn’t equal full productivity. What matters is: is the work made ready? Are we clearing roadblocks?
• GCs tracking labor has never made a difference: I have never, ever, ever, ever, ever seen a general contractor track whether crews have enough people and had it make any difference whatsoever with anything on the project site. It’s fairly inconsequential to rest of trades and GC.
• Emphasis on labor counts is misguided: Unless GC is helping trade modify or optimize cycle time, GC probably doesn’t need to know. It’s really up to the trade partner. It is their business. Does trade need to know? Yes. Does GC need to know? Probably not.

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A Challenge for Construction Leaders

Here’s what I want you to do this week. Question everything. Ask yourself: if we’re tracking labor counts, what real outcome are we getting? Are we clearing roadblocks? Are we making work ready? Or are we falsely thinking that if crews have the right number of people, they’re going to make production? We can’t be sticking to old traditions just because this is the way we’ve always done it. Many of the things that we do make absolutely no sense. It may be like a composite cleanup crew where it’s actually the worst thing you can do. And it never should have been invented in the first place.

Focus on what matters: Is the work made ready? Are roadblocks cleared? Is the zone ready? Is the sequence protected? Is the next trade enabled? Those are the questions that drive production. Not “How many people do you have?” As we say at Elevate, labor counts matter for trades optimizing cycle time, not for GC tracking. Tracking crew numbers without clearing roadblocks is myopic. Make work ready first.

On we go.

Frequently Asked Questions

When do labor counts matter in Takt planning?

In single-train Takt planning where you force crews into a Takt time, crew composition is a lever to adjust cycle time to fit within Takt time. Labor counts are important for trades optimizing their cycle time.

Why is GC tracking of labor counts myopic?

Because having the right number of people doesn’t equal full productivity. What matters is: is the work made ready? Are roadblocks cleared? I have never seen a GC track labor and have it make any difference on the project site.

What’s the civil crew example about?

Seven-person crew installing force main loses one person. Productivity cuts in half (not 10% loss) because of the way process steps work. This shows labor counts matter for trade composition, not for GC tracking.

Do GCs need to know labor counts?

Probably not, unless helping the trade modify or optimize cycle time. It’s really up to the trade partner. It is their business. Does the trade need to know? Yes. Does the GC need to know? Probably not.

What should GCs focus on instead of labor counts?

Is the work made ready? Are roadblocks cleared? Is the zone ready? Is the sequence protected? Is the next trade enabled? Those questions drive production, not “How many people do you have?”