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Total Quality Management for Total Quality Management for Improved Project Success Improved Project Success Construction Claims Monthly Webinar March 1, 2012 www.frisbygroup.org ©Tom N. Frisby 2012 Power Point Presentation by: Mendi Shuttleworth

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The history of mankind has been the history of improvement. Darwin's concept of the survival of the fittest certainly applies to the business community. In the construction industry, the failure rate is about 25% and although there are many reasons for this, one of the prominent ones is that companies do not organize for sustainability and do not continue to do the things necessary to face ever changing challenges which give them the fuel for sustainability. Total Quality Management is a process for continual improvement. Construction contractors should evaluate what TQM has to offer and from that evaluation customize concepts that are appropriate to its culture and needs. This webinar provides the guidance to construction contractors' evaluation of the principles of TQM which can and perhaps should be implemented in a given company.

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Page 1: Total Quality Management for Improved Project Success - Construction Claims Monthly Sustainable Success

Total Quality Management for Total Quality Management for Improved Project SuccessImproved Project Success

Construction Claims Monthly

Webinar

March 1, 2012

www.frisbygroup.org

©Tom N. Frisby 2012Power Point Presentation by: Mendi Shuttleworth

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Sustainable Success

Dramatically Changing Industry Delivery Systems Technology – Hard & Soft Quality Performance Demands

Productivity gains meager, at best!

How does a contractor compete, and staycompetitive?

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Program PurposeSustainability by construction contractors can occur,

though rarely seems to.

Maslow studied successful and bright people to formulate his needs of hierarchy and actualization conceptsWe have studied successful companies to see why they became successful and why they have stayed successful.Construction is like NASCAR. Some racers win purses, some hit the wall, and some just hang on as long as their sponsor's money lasts. We wish to learn from the losers but concentrate on why some drivers drink the milk at the finish line, year after year.Our purpose is to highlight the reasons some companies are like the battery, and just keep going, and why some aren’t.

There is no “one size fits all” model!

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The Age of Darwin

It is indeed, survival of the fittest! Of 850,000 non residential

construction companies in 2004, only 649,600 were still in business in 2006. ( 23% failure rate )

Owners are demanding

The bar of performance is being raised

Only the most qualified will be selected

The economy is not friendly

Owners are shifting the risk to the contractors.

Contractor Failure Rates

14.6%24.6%1541 Industrial

17.5%25.0%1542 Non-residential buildings

21.6%27.4%1600 Heavy Highway

24.4%29.0%1700 Trade Contractors

2004-062002-04SIC

Source: BizMiner

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Envelop of RiskDegree of Risk

Plan & Spec

Design Build

Pre-qualification

Exculpatory Clauses

Capital Shortages

Owner

Contractor

It is very HOT in the kitchen!

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Control Transfer to Contractor Two Step Delivery SystemsRisk Transforming Systems

Degree of Influence

over Productivity

Design Build Construction

Team

Owner Program

Requirements

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Heat in the Kitchen – How do you handle it?• Get out as some have, voluntarily or involuntary

• Become more competitive; climb to the top of the food chain

• If you have reached the top, figure out how to stay there

This is a dynamic, high risk, ever changing, competitive business.

You never “have it made”!

The sustainable, prevailing characteristic of a successful contractor is PASSION!

• The passion to stay on top of the heap

• To advance the game

• To be better at the end of the year than at the beginning

• To be better at the end of the project than at the beginning

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Deming’s Circle

Ask yourself:•Are you better today than in March 2011?

•Is your Company?

Get Work Do it Better

Get WorkDo it Better

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The Role of Today’s Contractor:

Contractors must be more than just builders. They must be excellent business managersMarketing (acquisitions) is no longer just reading the Dodge report. It is now a function of the entire spectrum of activities in the company.Marketing is a function of better performance than the competition, by each and all, from the president to the clean up laborer.

This is where some form of quality performance and continuous improvement programs should be evaluated, formed to fit your company, and implemented.You may not call it Total Quality Management (TQM) but if it is effective your improvement plans will have the basic elements of TQM

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What is Total Quality Management?(TQM)

Developed by Deming whose consultancy to Japanese business, postWorld War II, helped it become an industrial giant with better cars than ours (for a long time) and other products as well.

Basically it is simple: Leadership Customer driven Improvement of all elements of an organization to be more competitive in

the market place Continued improvement A company culture of quality performance built around people and

processes

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Construction Industry Institute (CII)

“Companies must institute TQM or become non-competitive in the national and international construction and engineering markets in the next 5 to 10 years.”Question: Do we build 36 story buildings in 16 calendar days? The Chinese do – just did one in December 2011.

Get the drift of CII’s warning?

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The Yellow Brick Highway

Passion and commitment are not enough. The highway to success must be built of

solid bricks which support the goals of the company.

TQM is a blueprint of the bricks that line that highway.

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IntegrityEthics

Principles

LeadershipCreativity

ImprovementMarketplace

Pareto

PeopleHiring Potential

EnablementEmpowerment

TrainingParticipationRecognition

ProcessesBest Practices

ExecutionImprovementMeasurement

IndustryImmersion

InterfaceManagement

Deming’s Quality Interlocking Circles

Customer Commitment

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But This Is An Elephant

Eat it One Bite At a Time!Pareto Principle (80 / 20)

“80% of the effects come from 20% of the causes!”

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First Bite: LEADERSHIPLEADERSHIP

An unmistakable characteristic of the continuously successful company is leadership blended with

“managementship”

CII says that leadership eclipses all other elements of TQM.

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Leadership & Managementship

LeadershipLeadershipDiscovering right market Discovering right market nichesnichesHow to be ahead of How to be ahead of competitioncompetitionCompany values, visionCompany values, visionMeeting new challengesMeeting new challengesHow to improveHow to improveBringing technology into Bringing technology into companycompanyCommunity involvementCommunity involvementWork place environmentWork place environment

ManagementshipManagementshipPolicies & procedures in place (project management tools)Implemented (performance) people development, training, effective use of technology systems & conflict managementContinuous improvement programsCommunicationEvaluation mechanisms

It takes both, plus EXECUTION!

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Leadership & Managementship

First step in TQM: Check out your balance between the two. Presidents should weigh in more heavily on the leadership scale. If the leadership functions are malnourished, company success will normally dim. Everyone should exercise leadership to some extent. (a welder who suggests ideas for better spools is showing leadership)Second step in TQM: Determine the leadership approach in your company. Top line generally trumps bottom line management.

BUT NOT ALWAYSBeware of the “One Size Fits All”!

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The Role of the PresidentManagement Approaches

Top Line ManagementEmpower others (enable first)Ideas from anywhereGet the best people, develop them, & reward them (see “Good to Great”)Customer driven: internal & external (see “NUTS”)Profit driven (grow capability before revenue)Team orientedContinual improvementAccountability committedProcess drivenStrategic plannerPriority managerLiquidity managerStrong principles (see Roy Disney)

Bottom Line ManagementCommand & controlIdeas from the topPeople are expendableFinancial drivenRevenue drivenCompany focusStatus QuoDo what it takesGet it doneTactical planner

BUT ONE SIZE DOES NOT FIT ALL!

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Leadership CompanyThe Role of the President

“It is difficult to soar with the eagles when the president is a sparrow” (anonymous)

For TQM (or any real improvement program) to be effective, the role and effectiveness of the president (and his management team) must

first be evaluated.

The following is what we expect of the president:

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The Role of the PresidentHe is the “Head Coach”

Knows how to play the gameDevelops game plans which will win using: Excellent players who have a play book

Processes Real team players that give input on how to win

A great recruiter People want to come and stay at his/her company

Has excellent assistant coachesConstant evaluation of game plan and playersCan take a loss and still come back for the next gameInnovative – a student of his professionPrepares for a muddy field

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PresidentPresidentHe has an approach for implementing

a quality performance at every level of the company:

1. Leadership’s continual commitment to quality2. Generates awareness, education and motivation of changes to

attitude of staff and all personnelInvolvement of organization (ownership) Bottom up instead of top down.

3. Develops visions and goals through strategic and tactical planningMarketPeopleProcessesDifferential advantageRisk management Inter-company managementIndustry involvement

4. Develops quality plans for all players of work. (implements, monitors and measures.)

Employee participationCustomer feedback

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Strategic Planning Process

Team meets quarterly to assess its attainment of goals, reassess objectives as necessary.

Each manager will develop and monitor specific action plans for each tactical objective

Hire PECriteria: Degree in

mechanical engineering

Supervisor training program

Develop best practices field program

Implement benchmarking

Development of processes

Prepare bid/no bid decision checklist

Develop screening of potential jobs to bid to be consistent with goals of job mix, project risk, and core competency

Develop training program for scheduling and contract management

Hire PE for Design Build projects

Study reasons for job “fade” and develop and monitor close out plan

Strategic objectives (e.g.)

Develop better job mix (large projects balanced against lower risk, fast turnover projects.)

Improve cash flow management so jobs and bank finance projects

Develop plan to bring young people into the company at field and office levels

Participate in Design Build market

Increase profit percentage by a point or more

Improve reputation in community

Present overview of Evaluation report (Where we are, strengths, weakness. What’s worked – What hasn’t?)

Present forecast of opportunities, trends in the market areas.

Discussion of what we want the company to be over the next three years.

MarketsType & size projectsCharacteristics and qualifications of

personnel (office & field)Revisit values, guiding principlesCommitments to quality performanceCustomer relationsRisk managementProfit growth vs. revenue growthSuccessorshipPlant & equipmentCompensation & rewards programThis dialogue is framed around the question: What do we want to be?Assign responsibilities for meeting

Quarterly ReviewAction PlansTactical PlansMeeting ResultsAgenda – coordinated with

Participants

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Remember the elephant?Second Bite: PEOPLE

LEADERSHIPPEOPLE

From Good to Great

“Load the bus with the best people and put them in the right seats. Then you can go anywhere”

Bottom Up Participation

Empowerment…but Enablement FIRST

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Company Organization and Procedures

enablement empowerm

ent

High Standards

X Technical

X Values (Character)

X Process

X Accountability

X Interpersonal Relations

Command & Control Do Manage Lead

Martin K. Eby Sr. felt his number one job as President was to develop his people through a coaching and experience matrix.

This is the reason for succession plans – to develop (or enable) a subordinate into a greater management position. This is the reason for career development programs, continuous improvement programs, seminars,

in-house training, and lifetime training to enable individuals to perform (and this organization) to perform better.

Without “enablement” there is not quality organization: empowerment will fail.

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Continuous Training

Hiri

ng

Appr

oach

Inte

rns

Expectations

& Evaluatio

ns

In-house training

Conference room, on the job, Webinar

Coaching / Mentor Programs

“Slettenizing”Pre-mortems

(lessons learned)Priority

Identification

Best Practices Teams

During

Mortem

sPo

st M

orte

ms

Succe

ssor

Develop

ment

Industry

Advances

Cross Training

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Pareto: Field SupervisionLargest risk: Field operations

Concentrate on development of strongest possible field supervisory staff

CONCEPTS:

Field supervisors are like presidents of small companies Give them the necessary tools including training

D-Day at Normandy – Able to handle changing circumstancesLean management concepts (see attachment)Best practices committee“Slettenizing” – CoachesTrend managementMechanisms for identifying and improving issues (focus meetings)

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Remember the elephant?Third Bite: PROCESSES

LEADERSHIP

PROCESSES

PEOPLE

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Productivity Factors (Fig. 1)

Leadership - Commitment

Processes and procedures aimed at job performance, not just more paper

Use processes and procedures as tools for improvement

Load the bus with excellent people

Get rid of losers

Motivational programs

Development of field supervision

Continuous training

Identify “Span of Control!”

Operate within span of control

Grow people and systems before, or contemporaneous with revenue

Concentrate of profit growth

Using proven people for new projects rather than hiring an unknown after you get the job.

Effective processes

Have the best people

Operating within strengths Turnover Pre

PlanningQuality of Estimate

Risk Evaluation

Effective turnover to project team

Effective pre planning meeting of the project team members

Quality of supervisory personnel

Quality of subs/suppliers and getting them on team

Estimating capability to do the job, not just taking off material and multiplying times unit

Accuracy check missed quantities often means missed labor to install quantities

Quality of subs/suppliers used

Contract reviewJob site reviewSchedule

analysis-nature of job owner-Designer (CM, GC) reputation

In house supervisory team

Risk management approach

Strategic Planning

Tactical Planning

Operations

Hom

e Office

Decision Making Management Relationship Management

Job set up(Plan success)

Maintain momentum through non-adversarial team approach

Unity of home office and field office instead of two company atmosphere

Integrity – AccountabilityCommunicationBuilt it quality

25/10 conceptEffective scheduleThree step quality

program in placeSafety in placeJob bought outDrawing review to clean

up ambiguities, errorsCommit to getting

submittals through timely & material.equipment deliveries on time

Begin crew planning approach

Material handling planLogsEstablish labor units

COLLABORATIVE APPROACHWITH OWNER-DESIGNER-SUBS

OPERATIONS HOME OFFICE

FIELD

EXECUTION

EXECUTION

EXECUTION

SAFETY

SCHEDULE-UPDATE MANAGEMENT TOOL

QUALITY-PIF (SHORT FOR NO PUNCHLIST GOAL)

CONTRACT MANAGEMENT (NOTIFICATION, COMPLIANCE)

LOOK AHEAD SCHEDULES

DAILY PLANNING

MAINTAINING LEARNING CURVE

WORK FLOW

FIELD DOCUMENTATION

MONITOR & EVALUATE

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Productivity Factors (Fig. 2)

Post Completion ReviewClose Out ExecutionClose Out Plan

Cash Flow Development

Lessons learned to improve next project

Run your own inspectionsComplete deliverablesComplete open negotiationsCompleteTABSystem checkout if requiredFinal inspection

Reschedule in detail at 75% to intensify actions needed to complete on time

Schedule manufacturers representatives training as required

Timely billings & paymentBilling changes promptlyStaying on scheduleAvoiding withholdings due to failure to performAvoid continued retainage withholdingMeeting job objectives (labor, cost, completion)Timely final payment

Programs in place to identify areas for improvement and implementing / monitoring plans to improve

Coaching (mentoring)

Being vigilant to potential problems & solutions

Decisions neededSubmittal turnaroundDeliveries Labor cost trends (earned value)Schedule Trends RelationshipsInput from other team membersQualitySafetyFocus meeting on issues of concern

Continuous Improvement - FiledLook Ahead Home OfficeMonitoring (Timely) Operations

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Productivity Factors (Fig. 3)

Productivity PAC Men

RE-W

ORK

EXCESSIVE WARRANTY

JOB CONDITIONS

EXCESSIVE OVERTIME

UNTIMELY DELIVERIES

UNTIMELY SUBMITTALS

UNTIMELY DECISIONS

INEFFCIENTMATERIALHANDLING

INEFFECTIVE

PLANNINGAND USES

OF SCHEDULE

UNQUALIFIEDPERSONNEL

CRAFTSMAN TURNOVERSUPERVISORY

TURNOVER

•DISRUPTIONS•OUT OF SEQUENCE•CROWING•ACCESS•DENIAL/OBSTRUCTION•CHANGED CONDITIONS•ACCELERATION

COLLABORATIVE APPROACH

WITH OWNER-DESIGNER-SUBS

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Processes Schedule

SCHEDULE AS

DOCUMENT

CONSULTANT PREPARE

UPDATE FOR BILLING

USE TO COVER

HOLE IN WALL

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SCHEDULEAS

PROCESS

BEST PLAN FOR MANAGING PROJECT

BASIS OF SERIES OF PROMISES

MANAGES VARIABLES

Processes:

MEASUREMENT

TOOL

20-20

FORESIGHT

BEST PLAN FOR

PRODUCTIVIT

Y

(WORK FLOW)

PARTICIPATORY (OWNERSHIP)

COMMUNICATION

TOOL

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Processes Field Documentation

FIELD DOCUMENTATION

AS PAPERS

TOMBSTONE

20 / 20 HINDSIGHT

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Field Documentation As a Process

Daily Report Shows Equipment Delivery

Management asks”WHY”

Give Owner & Supplier Written

Notices

Works to Mitigate Damages

Updates Schedule to Show New Data

Record Effect

Update Labor Report Shows

Negative Trend

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Remember the elephant?Fourth Bite: EVALUATION

LEADERSHIP

PROCESSES

PEOPLE

EVALUATION

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Pareto – The Frisby learning curve“We have learned to repeat our mistakes.”

Companies fail because early detection of cancer is not spotted and excised.

(The Law of Chaos)

CANCER

1. Inspect and correct philosophy

2. Inadequate field documentation

3. Failing to update schedule and coordinate

METASTASIZE

1. Delays close out, increases labor cost. Risk not being pre-qualified on next job

2. Lack of early warning and timely notice bars potential claim

3. Project goes south. Wrecks production flow. Build claims instead of projects

Cancers which can MetastasizeCancers which can Metastasize

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Lessons Learned

Too often, these deficiencies are repetitive.Too often, these deficiencies are repetitive.Lesson: Evaluate your repetitive weaknesses and mistakes:Lesson: Evaluate your repetitive weaknesses and mistakes:

••By correcting you improveBy correcting you improve

••By failing to do so, you may start moving off the radar screenBy failing to do so, you may start moving off the radar screen

Successful companies make mistakes but:Successful companies make mistakes but:

••A system to identify early A system to identify early

••CorrectCorrect

••ImproveImprove

My Motto: “Because I was dumb six months ago doesn’t mean I havMy Motto: “Because I was dumb six months ago doesn’t mean I have e to stay dumb”to stay dumb”

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Pareto: Monitoring & Evaluation

The trajectory of a missile to the target involves a series of corrections. There must be real time data to know when you are off course, a process for correction, and monitoring to assure that

the corrective action is working.

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Key Performance Indicators (KPI’s)

“If you are not measuring performance you are just practicing.”

•A KPI is the measure of a process that is critical to the success of an organization or project.

•KPI’s are essentially the evidence that change and process improvement are actually leading to positive change in terms of better performing projects and organization.

•Center stage of TQM (or any improvement program) is measurement which means: create a baseline, start effective pre-planning, reduce punch lists to zero, and get G & A in line with industry average.

•Develop mechanism for reliable and timely information for assessment, evaluate results, take action, stay the course, and make correction

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Liquidity as a “keyhole” KPI

Liquidity – using current ratio (CR) is a “keyhole” KPI. If the CR is you look through the keyhole < 1.0 and

will probably see:

•Poor quality of estimates

•Unbilled change orders

•Claims (and poor claim management)

•Excessive overhead

•Poor workmanship

•Productivity issues

•Management by / of others

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CASH FLOW MANAGEMENT

INVESTMENT

RIGHT JOB

GOOD ESTIMATE

MOBILIZATION

BILLING

CHANGE ORDER BILLING

WORKMANSHIP (BIQ)

LEARN G & AWORK FLOW

SAFETY

BACKCHARGE

MANAGEMENT

TIMLE

Y PROCESS

CASH FLOW MANAGEMENT

Keep the cash running through the company. Some of it is going to stick.

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Over Evaluation of Numbers

The critical issue is not the number!

It is the process that drives the numbers.

One of the reasons TQM fails:

Obsession with numbers rather than identifying and correcting the drivers

of the numbers.

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LEADERSHIP

PROCESSES

PEOPLE

EVALUATION

Remember the elephant? Fifth Bite…

OTHER AREAS OF LEADERSHIP

OTHER AREAS OF

LEADERSHIP

LEADERSHIP: Staying in the game and management of growth. Grow the capability to perform before revenue growth or new

market penetration.

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Span of Control (The Company’s Infrastructure)

$

Type of Project

Size

Location

Delivery System

Contract Risks

People in PlaceProcesses In Place

Nature of Owners/Designers

Improvement Systems

Guiding Principles

Liquidity

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Span of Control Span of Control (The Company’s Infrastructure)(The Company’s Infrastructure)

Location

Out of State Project

Contract Risk

People

New, untested Project Managers

Unreasonable, Under Budgeted Owner

Owner

Liquidity

No Damages for Delay Clause

Living off Next Job

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Risk Management – Successful Companies Control their Destinies

AVOID PRICE MANAGE

•Unreasonable too costly to bear

•No damage for delay•Excessive liquidated

Damages (LD’s) •Impossible schedule

•Develop solution

This is youredge. This is what

competition is about!

•Become non-competitive•Tight schedule

•Poor Plans

No Control

Gamble Some Control Greater Control

Manage

A significant element of TQM is RESTRAINT

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The Role of Restraint

Bidding work you are not capable of doing

Empowering before enabling

Spending instead of saving

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Leadership Recession Management

As seen on the following chart, recessions come and go.

Like the weather, they hit some regions harder than others.Quality management includes managing for the bad times as well as the boom years.

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How to Manage Recessions

Plan that bad times may occur (or a bad job) Demographics watcher Lean flexible overhead (minimum fixed-avoid debt) Diverse Markets – Turner Model of 80’s (cash flow

markets) Company participation model (WIRTZ) Operate within span of control-avoiding high risk projects Become more productive – Compete through performance

improvement no mistake in bid. Avoid claims

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Remember the elephant?Sixth Bite: INTERFACE MANAGEMENT

LEADERSHIP

PROCESSES

PEOPLE

EVALUATIONOTHER AREAS OF

LEADERSHIP

INTERFACE MANAGEMENT

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INTERFACE MANAGEMENT

SUPPLY CHAIN

FINANCIAL RELATIONSHIPS SUBCONTRACTORS

TECHNOLOGICAL TRENDS

INDUSTRY TRENDS / RESOURCES

CUSTOMEROWNER/GENERAL

CONTRACTOR

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What does Customer Commitment Mean?

Perform

Continue to get Better

Organize to Perform

Understand Customer Needs

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CUSTOMER

SOLVE IT’S PROBLEM

MIND SHARING

RISKS(CONTRACT/REPUTATION)

COLLABORATION

DO THE RIGHT THING RIGHT

KNOW HOW TO PLAY HIS GAME (FEDERAL-e.g.)

CUSTOMER FOR LIFE

MUTUALITY

DECISION MAKING

OWNER GC

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SUPPLY CHAINMANAGEMENT

“ON THE TEAM” COLLABORATION

THE EFFECT ON LABOR COST

TURNER MODEL

MATERIAL

HANDLING

SEQUENCING &

DELAYS

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INTERFACE MANAGEMENT

TRADE ASSOCIATIONS

SAME, PMI, CSI, SBA

COMMUNITYUNIVERSITIES(Purdue, e.g.)

PEER GROUP

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FINANCIALRELATIONSHIPS

SURETY

BANK

CUSTOMERS

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TECHNOLOGY MEANS & METHODS

ELECTRONIC TOOLSBIM

PM SYSTEMSCLOUD COMPUTING

ROBOTIC

DELIVERY SYSTEMSDESIGN BUILDINTEGRATED

PROJECT DELIVERY(IPD’s)

PROJECT MANAGEMENTBIM 25/10 CONCEPTLEAN MANAGEMENT

NO PUNCH LIST (P-I –F)BEST PRACTICESCOLLABORATION

SPEEDPRE-ASSEMBLY

MODULARMATERIALS (FRP, e.g.)

CHINESE 16 DAY BUILDINGNANO TECHNOLOGY

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TQM – The IndustryNational Research Council (NRC)

Recommendations Opportunities for Breakthrough Improvements

The point is: The industry itself must look inside and figure out how to heal itself.

1. Widespread deployment and use of interoperable technology applications, also called Building Information Modeling (BIM)

2. Improved job-site efficiency through more effective interfacing of people, processes, materials, equipment, and information

3. Greater use of prefabrication, preassembly, modularization, and off-site fabrication techniques and processes

4. Innovative, widespread use of demonstration installations

5. Effective performance measurement to drive efficiency and support innovations

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TQM – Why it Fails:Because it is often implemented as a separate, and sometimes costly, unproductive activity. It isn’t a separate activity. It is an inherent part of what you do (or should

do/every activity)Because the best policies and procedures on the globe have never managed a company or project. Procedures and processes help us know the best practices for managing /

supervision. But it takes the understanding and commitment by qualified personnel to

make it happen. Like a CPM schedule, procedures are tools. They represent the race car. It takes the driver to win the race.

The inappropriate use of consultants, like a scheduling consultant who sets up the CPM then takes off for another client. It is the project management team that will turn that schedule into reality. The “expert” who helps you set up a TQM type program is not going to

run your company. It takes leadership and continual commitment at all levels.

Procedures without ownership are like row boats without oars. (Saturn 1-C).

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TQM – Why it Fails: (cont.)Failing to communicate the selfish side of improvement to personnel: “There is something in this for me!” Job security, career path Sense of fulfillment Pride in self and company Recognition Financial rewards

Because the company tries to eat the elephant in one bite. Identify first meaningful bite Work it through system and demonstrate success Reevaluate; if necessary modify The next bite. Seldom more than 2-3 bites simultaneously.

Lack of communication and training of all involvedGap between management rhetoric and actual performanceFailure to measure resultsBecause personnel think increased profit simply go to buying president a new boat or finance another hunting trip.EgosOver institutionalized companies (politics)Our Iceberg is Melting. Mr. NoNo

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How do you improve?

1. Establish a standard2. Develop a process to meet the standard3. Train people on the process4. Get input from people doing the work5. Analyze Process

Take out steps/activitiesReduce wasteDo it right the first time

6. Update technology7. Emphasize planning8. Emphasize execution

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1.  Constancy of Purpose for continual improvement of services and allocation of resources to achieve this purpose.

2. A New Philosophy which finds unacceptable unnecessry waste, delays, defective products and workmanship.

3. Cease the concept of inspect and correct through built in quality.

4. Procure through value oriented, instead of lowest cost, contracts.

5. Improve every process.

6. On the job training of all levels in the company.

7. Leadership aimed at programs to improve productivity.

8. Replace fear with participation.

9. Replace slogans with effective methods and training.

10. Develop a culture of pride in workmanship.

11. Encourage education and training.

12. Leadership's commitment and action to achieve its goals.

13.  Open communication by breaking down barriers.

14. Replace arbitrary goals (such as quotas) through training and processes.

Dr. Demings 14 Point Total Quality Management Program