Field Labor Productivity

CAPITAL PROJECTS COST CONTROL

January 19, 2017 By George T McLaughlin PMP CCM

In light of the 2017-2018 Construction Forecasts, Capital Projects Cost Control is paramount and one to take a more acute focus.

In Project Execution, Field Labor Shortages Represent The Highest Risk To Achievement Of Time & Cost Objectives Large And Complex Projects.

Major Shortages in Construction Field Labor Will Influence (Negatively) US Construction Costs.

In Execution (After Stage Gate Three), A Major Risk to Project Cost Management Resides in Labor Cost (overruns),

The Highest Risk to Achieving Project Cost Management Occurs In Execution – After Stage Gate Three/Full Funding.

Driven By A Long History of Cost and Schedule Overruns, Managerial Thinking Now Prioritizes Cost Certainty.

On Complex Capital Projects, Cost Certainty Has Become a Compelling Objective.

McLaughlin & McLaughlin has assisted numerous Major Capital Projects successfully over the years by providing cost effective business solutions and recovery plans.

What makes McLaughlin & McLaughlin unique from the others is that we not only perform project management services but dispute resolution as practitioners.

It is important to note that McLaughlin and McLaughlin Project and Dispute Consulting LLC [M&M] is not a law firm and is not intending to provide legal advice. M&M is a consulting firm providing (among other services) non-legal expertise in construction claims, dispute resolution and litigation support. For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

Filed Under: Featured, General, Productivity, Project Planning, Projects Tagged With: Best Practice, Capital Projects, claims and disputes practitioners, Construction claims and disputes, Construction Field Labor Productivity, Cost and Schedule Certainty, Craft labor Shortages, Dispute Resolution, Field Labor Productivity, George T. McLaughlin PMP, large and complex industrial projects, PMI, Project Execution Plan, Project Management Institute (PMI), Time Management Strategy, Troubled Projects, www.mclaughlinandmclaughlin.com

LABOR OVERRUNS

January 13, 2017 By George T McLaughlin PMP CCM

As the increase of projected Major Capital Projects for 2017-18 emerge with all its implications troubled projects are a likely result. LABOR OVERRUNS are a typical component in troubled projects.

LABOR OVERRUNS – impact several project baselines. Cost, Schedule and Progress are at risk.

LABOR OVERRUNS – Labor Overruns are a major risk in any project with a significant labor component.

LABOR OVERRUNS – Early detection, correction and management require use of proper KPI’s.

LABOR OVERRUNS – Use of thoughtful KPI’s facilitate early/proactive corrective action.

LABOR OVERRUNS – Labor Shortages in 2017 and beyond will lead to upward pressure in labor rates.

LABOR OVERRUNS – Labor shortages in 2017 and beyond will lead a man-hour overruns (poor productivity).

McLaughlin & McLaughlin has assisted numerous troubled Major Capital Projects successfully over the years by providing cost effective business solutions and recovery plans.

Filed Under: Claims, Featured, General, Productivity, Project Planning, Projects Tagged With: AACE International, Business solutions, Capital Projects, Construction claims and disputes, Cost Certainity, Field Labor Productivity, George T. McLaughlin PMP, Labor Overruns, Labor Productivity, McLaughlin & McLaughlin, Progress, Project Execution Planning, Schedule Certainty, Troubled Projects

PRODUCTIVITY SERIES REVIEW (reissue 3)

January 29, 2012 By George T McLaughlin PMP CCM

McLaughlin and McLaughlin’s Project Professionals blog has a series of posts regarding labor/labour productivity. Over the last six months we have added to this popular series. The first summary was posted in June 2011. There was a reissue in October 2011, and again in November 2011. Readership has continued to increase. Consequently, we are reissuing this updated and expanded post as an overview of the labor/labour productivity series.

This Subject Series is being updated and new posts will be added over the coming weeks and months.

Productivity is 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 challenge (actually, both and more). 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.

“Change Order / Variation Impact (United States and Canada)”

“Change Order / Variation Impact (UK and related venues)”

“Improvement – Take Away the Excuses”

“Productivity and Leadership”

“Improvement – Productivity Evaluation”

“Improvement – Plan the Work Well”

“Labor Productivity and Disruption – Managerial Considerations”

“Worker Productivity – Watch How the People Work”

“Labor/Labour Productivity – Overtime Impacts – INDUSTRY STANDARDS

“Labor/Labour Productivity – Overtime Impacts – MANAGERIAL CONSIDERATIONS”

“Labor/Labour Productivity – Overtime Impacts – PLANNING CONSIDERATIONS”

“Labor/Labour Productivity – Overtime Impacts – EVALUATING IMPACT” [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Change Order Impact, Field Labor Productivity, George T. McLaughlin PMP, Labor Productivity, McLaughlin & McLaughlin, Overtime Impact, Productivity, Productivity Improvement, Variation Impact, www.mclaughlinandmclaughlin.com

PRODUCTIVITY SERIES REVIEW (reissue 2)

November 7, 2011 By George T McLaughlin PMP CCM

McLaughlin & McLaughlin’s Project Professionals blog has a series of posts regarding labor/labour productivity. Over the last month we have added to this popular series. The first summary was posted in June and the latest was a reissue in October 2011. Readership has continued to increase. Consequently, we are reissuing this updated and expanded post as an overview of the labor/labour productivity series.

Productivity is 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 challenge (actually, both and more). 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. [Read more…]

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

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)

Search this Site