asa subexcel - industrialization of construction(r) by mca, inc. 03-05-20 v.1 · 2020-03-02 · od\...

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© MCA, Inc. 363 E. Grand Blanc Road, Grand Blanc, MI 48439 / Tel: (810) 232-9797

Making Productivity Visible to Everyone®

Contractor Education Workshop for

ASA SubExcel 2020Thursday, March 5th, 2020

Las Vegas, NV

Conducted by:Dr. Perry Daneshgari & Heather Moore

Industrialization ofConstruction®

1 of 40Confidential



Industrialization of Construction®

Session Overview

• Industrialization of Construction®

– What is happening in construction– How did industrialization happen in other

industries, specifically manufacturing– How will it happen in construction– What will construction look like

• What do Subcontractors need to be ready for itand stay ahead?– Reading the signals– What sources of data are needed to operate and

see ahead– What can ASA do to support you?

• Click here for links to additional reading and references onIndustrialization of Construction®

2 of 40Confidential

http://mca.net/resources/publications/



What is Happening in Construction

3 of 40Confidential

0%

10%

20%

30%

40%

50%

60%

70%1

949

195

9

196

9

197

9

198

9

199

9

200

9

Cat

egor

y's

% o

f To

tal

Con

stru

ctio

n M

ark

et

Industrial Commercial Residential

1958



Electrical Market Shifted 40 Years Later

4 of 40Confidential

0%

10%

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60%

70%1

964

196

7

197

0

197

3

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6

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2

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8

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1

199

4

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0

200

3

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6

200

9

Cat

egor

y's

% o

f E

C C

onst

ruct

ion

Mar

ket

Industrial Commercial Residential

1999



Construction Productivity Lags the National Average for Decades

5 of 40Confidential

-

0.50

1.00

1.50

2.00

2.50

3.00

La

bo

r P

rod

uct

ivit

y In

de

x

Labor Productivity (1964 - 2015)(Nonfarm Index as derived by US Bureau of Labor Statistics (BLS); Construction Index derived from Total

Value fo Construction Put In Place at 1964 Constant Dollars, and Hours Worked Construction (BLS)

Nonfarm Index Construction Index



• Lack of common productivity improvement tools

• Lack of national policy

• Open markets in US

• U.S. construction market was 25% of the world market and is now below 15%

• Lack of standards

2009 National Academies of Sciences Report on State of Construction

Confidential 6 of 40



7 of 40Confidential

Industrializationin

Manufacturing



Industrialization Happens Through…

1. Management of Labor

2. Management of work

3. Lean Operations

4. Modeling and Simulation

5. Feedback from the source

8 of 40Confidential

- Dr. Perry Daneshgari, 2011



In Fast Motion….

9 of 40Confidential

Industrialization in manufacturing

Higher production than individuals

could do

New set of consumers

were created

Need for production increased

Need for scientific

management

• Labor & work needs to be managed (Taylor)• Segregation of work (Ford)

• Efficiency of machine

• Lean (Toyota)• Effectiveness of labor, which leads into better

material usage

• Modeling & simulation• First product• Then process• Then information & social networks / interactions

400% improvement

in productivity



10 of 40Confidential

Industrializationin

Construction



What is Happening in Construction?

• Market is changing

• Less specialization is required

• Unionization is declining

• Types of markets are changing

• System Productivity is the main difference




Industrialization in Construction Can Only Happen Through:

1. Management of Labor

2. Management of work

3. Lean Operations

4. Modeling and Simulation

5. Feedback from the source


- Dr. Perry Daneshgari, 2011



The First Sparksof Industrialization




Industrialization RequiresData-based

Project Management




Supporting InfrastructureSBPI®, WEM®

JPAC® SIS® Prefab Agile Procurement®

Agile Construction®

Best Quality, Fastest Time, Lowest Cost of Construction

Managing Labor & Work and Improving Productivity

Segregating & Externalizing Work®





Confidential

®

Job Productivity Assurance & Control

16 of 40



JPAC® moves correction effort here!

$

Planning Early Project Mid Job Closure Punch list

Difficult to see/predictCheap to fix

Easy to seeExpensive to fix

Defects are:

Most current project correctioneffort is here.

Cos

t to

Cor

rect

Qua

lity

and

Pro

fitab

ility

Confidential

Fix the Problems as They Occur

17 of 40



JPAC® Predicts Project Financial Performance

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

JPAC® Vs. Gross Profit68,000 hours

Gross Profit JPAC®




JPAC® Predicts Project Financial Performance


Green line projects project labor cost gain (+) or fade (-)

Medical Center

Black line shows productivity differential

from plan (WBS)



®

Short Interval Scheduling




SIS® for Project Obstacle Root Cause Analysis

Labor Look Ahead - % of Causes for Differences08-02-04 through 12-03-04

27%

12%11%10% 9%6% 4% 3% 2% 1% 1%

14%

0%

10%

20%

30%

40%

50%

Trade

inte

rfere

nce

Initia

l esti

mat

ion

Chang

e or

der

GC Owne

r Tim

ing/sc

hedu

le

Absen

teeis

m

Wea

ther

Lack

of a

cces

s

Shorte

d labo

r

Mater

ial delive

ry is

sue

Labo

r qua

lity is

sue

Subm

ittals

Equipmen

t dela

y

Perc

en

tag

e O

ccu

rin

g

0%

20%

40%

60%

80%

100%

Cu

mu

lati

ve P

erc

en

tag

e

Management focusLabor

experienceConfidential 21 of 40



SIS® for Project Obstacle Root Cause Analysis


Top 3 Obstacles to Completing Scheduled Work:1. Area not ready = 33%2. Manpower shift from supervision =

32%3. GC Schedule Issues = 16%

© MCA, Inc. 363 E. Grand Blanc Road, Grand Blanc, MI 48439 / Tel: (810) 232-9797 23 of 40


Developed byA Proud Flint, MI Company

Improves Productivity by Better Than

30%Presented

byDr. Perry Daneshgari and Heather Moore

The New ASTM E2691 Standard for Construction Productivity

Measurement



To use the suggested effort expended of the TRA of 1986, JPM was developed to achieve the following:

1) Measure ongoing change in production rate

2) Report actual construction put in place

3) Identify errors, rework, and quality issues

4) Substantiate work performed for progress billing, revenue and gross margin recognition

Development of JPM




• Productivity has to be measured at the source– Only the person who installs knows

• Actual and correct installation

• Completion

• Contributing activities to installation

• Rework

• Value destroying activities, such as material handling

History of JPM




ReportingGraph Example

4%

25%

42%

24%

-19%

28%

-71%

23%

96%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

We

ek 1

We

ek 2

We

ek 3

We

ek 4

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ek 5

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ek 6

We

ek 7

We

ek 8

We

ek 9

We

ek 1

0

% P

rod

uc

tivi

ty D

iffe

ren

tial

Total Job

Service & Distribution

Lighting and Branch Wire

Other Electrical Systems

Site Lighting




Application – Project Level

-100%

-80%

-60%

-40%

-20%

0%

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100%

We

ek 1

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ek 9

We

ek 1

0

% P

rod

uc

tivi

ty D

iffe

ren

tial

Sub A Sub B Sub C Sub D




• Which of these signals do you see in your business/market

• What sources of data do you currently have/use: lead and lag indicators

• Take-aways:– What should ASA do to support you (e.g. what

topics do you want more education / exposure to)

– What 2 things will you do in your company after this session to prepare for Industrialization

Breakout Sessions/Questions




COMPETING IN THE NEW CONSTRUCTION ENVIRONMENT:

A COMPILATION TO LEAD THE WAY

https://mca-soft.com/books/

Construction is facing a revolution. No industry will remain untouched by the technological improvements in the communication, processes and tools. The construction industry is no exception.

Written byDr. Perry Daneshgari& Dr. Heather Moore


© MCA, Inc. 363 E. Grand Blanc Rd., Grand Blanc MI 48349 / Tel: (810) 232-9797


2020 Spring SymposiumA Path to Industrialization

May 15, 2020

Call (810) 232-9797 or email: [email protected]

Agile Construction® - Data-Based Project Planning

Our industry continues its journey toward Industrialization. The most competitive companies will be those applying Agile Construction®

concepts that support Project Managers in planning, execution and control throughout the lifecycle of their projects.

Registration:$495.00 per personOmaha, NE




PrefabricationHandbook for the Construction Industry

https://mca-soft.com/books

Over 200 pages of comprehensive explanation and examples for supporting any size and scale prefab shop.

Written byDr. Perry Daneshgari& Dr. Heather Moore


https://mca-soft.com/product/prefab-handbook-with-subscription/



Articles Ebook Vol I , Vol II & Vol IIIAgile Construction® related articles on…

https://mca-soft.com/product/mca-vol-i-ebook/

• Transformation• Productivity

https://mca-soft.com/product/mca-vol-ii-ebook/

• Procedures• Tools• Measurements

• Profitability• Process

https://mca-soft.com/product/mca-vol-iii-ebook/


https://mca-soft.com/product/mca-vol-i-ebook/

https://mca-soft.com/product/mca-vol-ii-ebook/

https://mca-soft.com/product/mca-vol-iii-ebook/




For TheElectrical ContractorByDr. Perry Daneshgari

$55.95


https://mca-soft.com/product/agile-construction-for-the-electrical-contractor/

https://mca-soft.com/product/agile-construction-for-the-electrical-contractor-pdf-ebook/


https://mca-soft.com/product/agile-construction-for-the-electrical-contractor-required-reading-for-all-agile-classes/

https://mca-soft.com/product/agile-construction-for-the-electrical-contractor-pdf-ebook/



Custom Covers Available

CUSTOM LOGO IMPRINTSFront & Back CoversContact us for quantity discounts!

(810) 232-9797www.mca.net




Agile Distribution®

Application of Lean Principles

https://mca-soft.com/product/agile-distribution/

In today’s still challenging economy, becoming lean in wholesale distribution is more important than ever in today's challenging economic market.

Written byDr. Perry Daneshgari


© MCA, Inc. 363 E. Grand Blanc Rd., Grand Blanc MI 48349 / Tel: (810) 232-9797Confidential


WEM®Work Environment Management

Training • Productivity Software • Support

Call for details (810) 232-9797

www.wemsoftware.com

36 of 40



Your Portal to MCA’s Products, Services and

Information

www.mca-soft.comwww.mca.net




Short Interval SchedulingThere is no better way to see what’s getting in the way of you getting done what you set out to do than SIS®

Available inBronze, Silver and Gold PackagesCall for details!(810) 232-9797Training Videos available online!Complimentary Mini Classes are available every Tuesday and Wednesday.

Available on iPad & Android devices.




Job ProductivityAssurance and ControlINCREASE PROFITS 30%BY APPLYING JPAC® TO YOUR BUSINESS.Available inBronze, Silver and Gold PackagesCall for details!(810) 232-9797Training Videos available online!Complimentary Mini Classesare available every Thursday.Available on iPad & Android devices.


asa subexcel - industrialization of construction(r) by mca, inc. 03-05-20 v.1 · 2020-03-02 · od\...

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