Labor/Labour Productivity – Overtime Impacts (Part 10)

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…]

Labor/Labour Productivity – Overtime Impacts (Part 9)

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…]

PRODUCTIVITY SERIES REVIEW (reissued)

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 & McLaughlins 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.

 

[Read more…]

MANAGING RISK OF DELAY – Forecasting and Management (Part 12)

This post is the twelfth in a series of discussions regarding various aspects of time management as it relates to the risk of delay.  This post addresses the managerial aspects of forecasting related to time management.

Planning for and implementing (time-related as opposed to cost-related) forecasting is, perhaps, one of the most important aspects of Time Management and, consequently, Managing Risk of Delay.  As with progress assessment, timely (early) detection of trends (positive and negative) allows timely managerial action.  Timeliness of action has a heavy influence over the effectiveness of Time Management.  In project work, it is imperative that one finds problems quickly and fixes these problems rapidly.  In order to implement timely action, professional and realistic time forecasting is required.

The challenge associated with managing time is intensified in the case of larger and more complex projects as well as fast-track and high technology projects. [Read more…]

MANAGING RISK OF DELAY – Progress Assessment (Part 11)

This post is the eleventh in a series of discussions regarding various aspects of time management as it relates to the risk of delay.  This post addresses planning for and implementing progress assessment.

Planning for and implementing progress assessment is, perhaps, one of the most important aspects of Time Management and, consequently, Managing Risk of Delay.  Timely (early) detection of trends (positive and negative) allows timely managerial action.  Timeliness of action is a heavy influence over the effectiveness of Time Management.  In project work, it is imperative that one finds problems quickly and fixes these problems rapidly.  In order to implement timely action, professional progress assessment is required.

The challenge associated with managing time is intensified in the case of larger and more complex projects as well as fast-track and high technology projects. [Read more…]

MANAGING RISK OF DELAY – Schedule Updates and Progress Considerations (Part 10)

This post is the tenth in a series of discussions regarding various aspects of time management as it relates to the risk of delay.  This post addresses planning for and implementing progress measurement and schedule updates.

The challenge associated with managing time is intensified in the case of larger and more complex projects as well as fast-track and high technology projects.

In order to professionally manage time (and, therefore, risk of delay) the manager must have a time baseline [typically a Critical Path Method schedule and a Performance Measurement Baseline – please see earlier posts on these topics] and a method to recognize variations from the baseline.  In order to detect variances, the managerial team must have an effective process to measure progress data and update the schedule (or time model). [Read more…]

MANAGING RISK OF DELAY – Subject Series Summary Update

This summary update provides readers with an overview of prior posts and provides a baseline for future posts that will follow on a timely basis.  The last summary was posted on June 12, 2011.

This summary is very brief and simply serves as an index for readers to follow.  More robust summaries are provided in the June summary.  Of course, detailed descriptions are contained in the individual posts.

Ideally this summary provides a starting point to investigate best practice on many delay-related features of project management.

The Context and Challenge (Part 1) – Talk/Speech by Mr. Keith Pickavance

Time-Management Strategy (Part 2) – Strategy according to CIOB Guide

As-Planned Schedule / Accepted Programme (Part 3) – Establishing the Time Management Baseline

Schedule Preparation and Maintenance (Part 4) – Managing the Time Baseline

Earned Value Management (Part 5) – Importance and Management of the Time Baseline Tool

Critical Path and Earned Value Management (Part 6) – Managing with Critical Path, Earned Value Management and Productivity Tools

Earned Value and Schedule Performance Indicators (Part 7) – Time Management Tools

Schedule Specification Sources and Implementation (Part 8) – Managerial Tools with sources

Recognition and Notice (Part 9) – Managerial Alerting and Action Tools

 

Going forward, we will post other features of MANAGING THE RISK OF DELAY. [Read more…]

PROJECT MANAGEMENT CHALLENGES – Project Planning Lessons Learned (Part 9)

RESOURCE REQUIREMENTS

Project success and failure outcomes…  Planning the project properly, documenting the plan professionally and then implementing the plan successfully are likely the sources of most project success and failure outcomes.  Using best practices and learning from the experiences of others are effective methods for skill set development.  Many organizations that use project management on an ongoing basis close out projects with a compilation of “lessons learned.”  These firms have found value in studying the specific issues that have emerged in the past.

As part of the planning process, a review of relevant lessons learned can be instructive as well as a “sanity check” or completeness evaluation regarding the adequacy and comprehensive nature of your Project Management Plan.

This post continues the focus on issues in planning and problems that have their source or root cause in planning.  The subject is Resource Requirements.  In this regard, the post will focus on human resources or staffing.  This discussion is not focused on direct labor (e.g. construction craft labor, software engineering man-hours). [Read more…]

RESOURCE CENTER UPGRADE

The purpose of this post is to advise readers that the Project Professionals Resource Center feature or page has been upgraded.  Please visit this useful page and familiarize yourself with the content.  Please visit the Resource Links page which provides links to useful industry tools and resources.  The pages were derived from years of frustration searching for reliable, substantiated references.  So, the desires to share our choices are listed on the noted pages.

The Resource Center feature of this McLaughlin and McLaughlin [M&M] blog provides blog visitors with information and links to important and useful publications that relate to project management and dispute resolution in project work.

Recently, the Resource Center was upgraded to include several new publications, cite a new version of Mr. Pickavance’s book on delay and add some useful Resource Link updates. [Read more…]

PROJECT MANAGEMENT CHALLENGES – Project Planning Lessons Learned (Part 8)

STAKEHOLDER MANAGEMENT

Planning the project properly, documenting the plan professionally and then implementing the plan successfully are likely the sources of most project success and failure outcomes.  Using best practices and learning from the experiences of others are effective methods for skill set development.  Many organizations that use project management on an ongoing basis close out projects with a compilation of lessons learned. These firms have found value in studying the issues that have emerged in the past.

As part of the planning process, a review of relevant lessons learned can be instructive as well as a “sanity check” or completeness evaluation regarding the adequacy and comprehensive nature of your Project Management Plan.

This post continues the focus on issues in planning and problems that have their source or root cause in planning.  The subject is Stakeholder Management. [Read more…]