Productivity

Labor/Labour Productivity – Overtime Impacts (Part 10)

October 16, 2011 By George T McLaughlin PMP CCM

MANAGERIAL CONSIDERATIONS

This is the tenth posting regarding labor/labour productivity and disruption. This contribution provides managerial considerations or issues regarding the impact of overtime on labor productivity. The Subject Series can be viewed here.

The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management. In general, some of the points of concern include:

“Project Management Plan – basis for the plan and related resource requirements”
“Changed Work – both prospective and retrospective planning and pricing”
“Delay Mitigation – planning and analyzing the options and related viability”
“Schedule Recovery – methods, options and viability”
“Forensic Analysis – claims for delay, acceleration and related impacts.”

Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses. Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs. Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

The impact of overtime on labor/labour productivity is not limited to construction field labor. It presents in engineering, programming, consulting and other professional man-hours. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Construction Contract Claims, Construction Contract Planning and Scheduling, George T. McLaughlin PMP, Labor Productivity, Labour Productivity, Managing risk of delay, McLaughlin & McLaughlin, Overtime impacts on productivity, Productivity, Productivity Management, Project Execution Planning, Risk of Delay, www.mclaughlinandmclaughlin.com

Labor/Labour Productivity – Overtime Impacts (Part 9)

October 12, 2011 By George T McLaughlin PMP CCM

INDUSTRY STANDARDS

This is the ninth posting regarding labor/labour productivity and disruption. This contribution provides industry sources and references on the impact of overtime on labor productivity. The Subject Series can be viewed here.

Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses. Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs. Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

The impact of overtime on labor/labour productivity is not limited to construction field labor. It presents in engineering, programming, consulting and other professional man-hours.

For this post, we will use United States definitions and standards as a baseline. Many of the authoritative studies and analyses are done relative to US practices, if not US Gulf Coast (a common estimating standard or baseline).

However, these standards are relevant to the world open market. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Best Practices, Construction Contract Claims, Construction Contract Planning and Scheduling, George T. McLaughlin PMP, Labor Productivity, Labour Productivity, Managing risk of delay, McLaughlin & McLaughlin, Overtime impacts on productivity, Productivity Management, Project Execution Planning, Risk of Delay

PRODUCTIVITY SERIES REVIEW (reissued)

October 8, 2011 By George T McLaughlin PMP CCM

Project Professionals blog had a series of posts earlier this year. Over the next several weeks, the intention is to add to this popular series. This summary was posted in June. Since June, the number of readers has increased significantly. Consequently, we are reissuing this post as a kickoff and restart of the labor/labour productivity series.

Productivity has become a hot topic and has given rise to much discussion and debate in the project management world. Labor productivity can be a competitive advantage or a managerial disaster. Therefore, we believe that there is high potential benefit in a review of McLaughlin & McLaughlin’s Productivity Series. Below, we have the titles and links to each post followed by a brief summary of the content. We intend to augment these posts with additional writings on the subject.

PRODUCTIVITY SERIES REVIEW

June 22, 2011 By George T McLaughlin PMP CCM

Productivity has become a hot topic and has given rise to much discussion and debate in the project management world. Labor productivity can be a competitive advantage or a managerial disaster. Therefore, we believe that there is high potential benefit in a review of McLaughlin & McLaughlin’s Productivity Series. Below, we have the titles and links to each post followed by a brief summary of the content. We intend to augment these posts with additional writings on the subject.

WORKER PRODUCTIVITY – Watch How the People Work

June 7, 2011 By Richard S Troell

This is the eight posting regarding labor productivity and disruption. This contribution provides some practical suggestions for the manager in the field. The Subject Series can be viewed here.

Isn’t it always the obvious that gets us in trouble? It doesn’t seem to make much difference what area of life you talk about, the aspects that are obvious are most often those that we assume will take care of themselves and we skip over as we develop our plans. Considering the area of worker productivity, everyone knows how the work gets done. Right? Well, it is quite obvious. You just pick up the material and put it in place. After all, how can there be anything different about doing the work? Get the material to the job site, hire craft workers, provide drawings and the project will miraculously get built.

When thinking about various construction sites, even in the US, several differences in the manner in which the exact same work is accomplished in various locations are revealed. In order to properly plan and organize construction activities, the way people work in the specific location under consideration must be understood and incorporated. For example, is it better for productivity for each pipefitter welder to have an assigned stand-alone welding machine? Or possibly, the welder should use a welding machine located in an eight-pack of welders. That question could be strictly a planning matter, or it could be related to the site location and area practice. If one approach is better than the other for the project, area practice may need to be addressed and modified in some way for improved productivity to be realized. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Construction Contract Claims, Construction Contract Planning and Scheduling, Construction Field Labor Productivity, Disruption, Field Labor Productivity, Productivity Loss, Project Execution Plan, Project Execution Planning

Labor Productivity and Disruption – Managerial Considerations

May 2, 2011 By George T McLaughlin PMP CCM

This is the seventh posting regarding labor productivity and disruption. The Subject Series can be viewed here. In large and complex projects, a prime contractor may or may not direct hire the field labor. Often, the field labor is hired by major subcontractors (contractors hired by prime contractor). Examples are civil, structural steel, mechanical, piping, electrical and controls.

For the prime contractor [or similarly for Owner/Employer], subcontractor productivity is seemingly not important or relevant. This is particularly true if the subcontractor in question is on a fixed price or fixed unit price contract. However, events that are created by Owner/Employer or Contractor that impact the subcontractor’s productivity create potential liabilities. Further, once the subcontractor discovers the loss, a claim is likely to emerge.

Consequently, positive action is needed. There is a legitimate need for the Owner/Employer and Contractor to be informed. Managerial overlay, visibility and attention are components in the overall project management challenge. [Read more…]

Filed Under: Productivity, Projects Tagged With: AACE International, Changed Work, Chartered Institute of Building (CIOB), Construction Contract Claims, Construction Industry Institute (CII), Disruption, Field Labor Productivity, Mechanical Contractors Association of America (MCAA), National Electrical Contractors Association (NECA), Project Execution Plan, Project Management Institute (PMI), US Army Corps of Engineers (USACE)

Construction Field Labor Productivity Improvement – Plan the Work Well

April 22, 2011 By Richard S Troell

This is the sixth post regarding productivity in engineering and construction projects. To review an index and links to the entire series, please visit Subject Series page in this blog. This post discusses planning the work and the related impact on construction field labor productivity.

Any discussion of construction field labor (worker) productivity must, of necessity, eventually involve the idea of planning the work. Virtually every major project employs the expertise of several planners and schedulers to work the Primavera® scheduling program or some other comparable software. Great effort is placed on getting just the right schedule assembled and in place – with the right number of activities and leveled manpower, etc. However, all too often the schedule has been constructed in a near vacuum with little or no input or review from those who have to make it work in the field. [Read more…]

Filed Under: Productivity, Projects Tagged With: Change Order Impact, Change Orders, Changed Work, Claim Recognition, Construction Contract Claims, Construction Disputes, Construction Field Labor Productivity, Dispute Resolution, Disruption, Field Labor Productivity, Impact, Labor Disruption, Labor Productivity, Productivity, Productivity Loss

Productivity Calculations – Change Order / Variation Impact (Introduction – UK and related venues)

January 27, 2011 By George T McLaughlin PMP CCM

Often, productivity losses are associated with changed work or variations. Dealing with the calculation of proper compensation for this loss can be particularly challenging. Key industry resources or authorities may be helpful as a starting point. Beyond the industry resources, skilled analytical work may be needed. [Read more…]

Filed Under: Claims, Productivity Tagged With: AACE International, Change Order Impact, Change Orders, Changed Work, Impact Factors, Pickavance, Productivity, Productivity Loss, Society of Construction Law, Variations, William Schwartzkopf

Productivity Calculations – Change Order / Variation Impact (Introduction – United States and Canada)

January 24, 2011 By George T McLaughlin PMP CCM

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