Best Practice

Labor/Labour Productivity – Overtime Impacts (Part 12)

October 29, 2011 By George T McLaughlin PMP CCM

EVALUATING IMPACT

This is the twelfth posting regarding labor/labour productivity and disruption. This contribution provides thoughts on the evaluation of impact of overtime on labor productivity. The Subject Series can be viewed here.

Overtime or Extended Working Hours represent one of the widely recognized causes of loss in labor/labour efficiency or productivity. A key issue for project planners and managers is the notion of how to evaluate this impact. The evaluation challenge is present whether the analysis is prospective (contemporaneous) or retrospective. Retrospective analyses can be used or required during project execution or part of forensic analyses.

Regarding the evaluation techniques, K Pickavance (please see below for citation) organizes the methods as follows:

“Planned (undisrupted) versus actual (disrupted)”

“Actual (undisrupted) versus actual (disrupted) – the measured mile approach”

“Historic (undisrupted – on other projects) versus actual (disrupted)”

“Industry productivity norms (undisrupted) versus actual (disrupted)”

“Time and motion study (undisrupted) versus actual (disrupted).”

As previously posted, project planning is one of the major challenges for program and project management teams. Past posts have discussed many aspects of project planning. The series regarding Project Management Challenges is here. Part 5 of this series is particularly relevant or germane to the discussion regarding the impact of overtime on labor productivity in this post.

The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management. In the case of impact assessment, the anticipation of a particular analytical methodology is a planning consideration. Said differently, the project planning should consider the data needed and the collection techniques to be used relative to the assessment of overtime impact on productivity.

Again, the impact on the schedule duration must consider the planned and forecasted progress using the proper productivity. As overtime is introduced, progress may well be impacted. The time impact of more work hours per week is mitigated or offset by the lowered productivity. [Read more…]

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

Labor/Labour Productivity – Overtime Impacts (Part 11)

October 22, 2011 By George T McLaughlin PMP CCM

PLANNING CONSIDERATIONS

This is the eleventh 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.

Two key points:

“The project plan is needed as a baseline to calculate the expected cost and time performance (cost estimate or price and the project schedule)”
“Time and cost forecasts must be evaluated and adjusted if the project plan execution changes and overtime is introduced, increased or reduced.”

Project planning is one of the major challenges for program and project management teams. Past posts have discussed many aspects of project planning. The series regarding Project Management Challenges is here. Part 5 of this series is particularly relevant or germane to the discussion regarding the impact of overtime on labor productivity in this post.

The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management. 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.

Perhaps more importantly the impact on the schedule duration must consider the planned and forecasted progress using the proper productivity. As overtime is introduced, progress may well be impacted. The time impact of more work hours per week is mitigated or offset by the lowered productivity.

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

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

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

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

September 30, 2011 By George T McLaughlin PMP CCM

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…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Best Practices, Construction Contract Claims, Construction Contract Planning and Scheduling, Earned Value Management, George T. McLaughlin PMP, Managing risk of delay, McLaughlin & McLaughlin, Productivity Management, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy

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

September 19, 2011 By George T McLaughlin PMP CCM

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…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Chartered Institute of Building (CIOB), Construction Contract Claims, Construction Contract Planning and Scheduling, Delay, Earned Value Management, Frederic L. Plotnick, George T. McLaughlin PMP, James O'Brian, Managing risk of delay, McLaughlin & McLaughlin, PMI, Productivity Management, Progress Reporting, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy

RESOURCE CENTER UPGRADE

September 7, 2011 By d.mclaughlin

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…]

Filed Under: Claims, Featured, General, Projects, Uncategorized Tagged With: AACE International, ABA, Best Practice, Chartered Institute of Building (CIOB), Construction Industry Institute (CII), Doctor Harold Kerzner, George T. McLaughlin PMP, Keith Pickavance, MCAA, McLaughlin & McLaughlin, NECA, PMBOK, Project Execution Plan, Project Execution Planning, Project Management, Project Management Institute (PMI), Project Planning, US Army Corps of Engineers (USACE)

TIME MANAGEMENT – Schedule Specification Implementation (Part 4)

August 15, 2011 By George T McLaughlin PMP CCM

This Subject Series addresses the sources and implementation of a contract schedule specification. The Subject Series structure is and will be multiple parts and be a logical extension of the series titled MANAGING RISK OF DELAY.

The overview of this series is:

Managing Risk of Delay – Schedule Preparation and Maintenance (Part 4)
Managing Risk of Delay – Schedule Specification Sources and Implementation (Part 8)
Time Management – Schedule Specification Implementation Overview (Part 2)
Time Management – Schedule Specification Implementation Specific Issues (Part 3) Making State of the Art Scheduling Specifications Work (presented in multiple parts).

The balance of this post and subsequent ones in this series are/will be from this paper. In general, this informative work compares two approaches to schedule specification implementation.

This extract covers:

WEATHER DELAYS
THE APPROVED SCHEDULE [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Approved Schedule, Best Practice, Construction Contract Planning and Scheduling, Construction Scheduling, George T. McLaughlin PMP, Managing risk of delay, McLaughlin & McLaughlin, Risk of Delay, Schedule Approval, Schedule Specification, Time Management, Time Management Strategy, US Army Corps of Engineers (USACE), Weather Delays

MANAGING RISK OF DELAY – Recognition and Notice (Part 9)

August 11, 2011 By George T McLaughlin PMP CCM

This post is the ninth in a series of discussions regarding various aspects of time management as it relates to the risk of delay. More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management. This post addresses planning for and implementing recognition and notice as a managerial tool.

The challenge associated with managing time is common to virtually all projects. This challenge is true for most project management situations. It is intensified in the case of larger and more complex projects as well as fast-track (an ambiguous term) and high technology (similarly, an ambiguous characterization) 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.

Further, the managerial team must have an effective process to provide timely and compliant notice of the variance to the time baseline. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Bramble and Callahan, Construction Contract Claims, Construction Contract Planning and Scheudling, Delay, Earned Value Management, George T. McLaughlin PMP, Keith Pickavance, Managing risk of delay, McLaughlin & McLaughlin, Productivity Management, Project Execution Plan, Project Execution Planning, Recognition and Notice, Risk of Delay, Time Management, Time Management Strategy

PROJECT MANAGEMENT CHALLENGES – Project Planning Lessons Learned (Part 7)

July 30, 2011 By George T McLaughlin PMP CCM

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. Learning from the experiences of others is an effective method 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. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Chartered Institute of Building (CIOB), CIOB, Doctor Harold Kerzner, George T. McLaughlin PMP, Keith Pickavance, McLaughlin & McLaughlin, PMI, PMOK, Project Execution Plan, Project Execution Planning, Project Management, Project Management Challenges, Project Management Institute (PMI), Project Management Plan, Project Planning

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