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A Two-Tier Work Force Strategy

A Two-Tier Work Force Strategy. Richard L. Tucker. Center for Construction Industry Studies (CCIS). CPI Conference 2001. A Two-Tier Work Force Strategy. Richard Tucker Center for Construction Industry Studies. CPI Conference 2001. Agenda.

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A Two-Tier Work Force Strategy

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  1. A Two-Tier Work Force Strategy Richard L. Tucker Center for Construction Industry Studies (CCIS) CPI Conference 2001

  2. A Two-Tier Work Force Strategy Richard Tucker Center for Construction Industry Studies CPI Conference 2001

  3. Agenda • Center for Construction Industry Studies • Work Force Issues • The Two-Tier Concept • Tier II • A Necessary Element: Metrics • Path Forward

  4. Center for Construction Industry Studies

  5. Center forConstruction Industry Studies • Established in 1996 • Funding from Sloan Foundation • Strong CII Interface • Research Thrust Areas http://www.ce.utexas.edu/org/ccis/

  6. CCIS Thrust Areas • Fully Integrated and Automated Project Processes (FIAPP) • Owner/Contractor Work Structure (OCWS) • Technology (Construction Methods) • Construction Work Force

  7. Work Force Issues

  8. Two Tier Concept Evolution Previous- Many Studies by Many Groups May 2000- CCIS Work Force Steering Committee February 2001- Tier II Workshop - Tier II Metrics Development June 2001- CCIS Work Force Steering Committee (Tier II) - CII Research Team 182 (Tier I) - CII BM&M (Construction Success) July 2001- Tier II Workers Workshop August 2001- CII Annual Conference September 2001- CPI Conference Future- Pilot Projects

  9. Work Force Steering Committee Dan Bennet NCCER David Bush Adena Corporation Keith Byrom Zachry Construction Corp. Randy Evans BE&K Ned Givens CII Ken Hedman Bechtel Jim Jeffress DuPont Ted Kennedy BE&K Doug McCarron United Brotherhood of Carpenters and Joiners of America Jim Mortell Cherne Contracting Corp. James Slaughter S&B Engineers and Constructors Kent Underwood Solutia Inc. Lowell Wiles Williams Group International

  10. Work Force Academic Effort Faculty Bob Glover Bill Kelly Stephen Thomas Richard Tucker Carl Haas John Borcherding Current Students Nicole Balli Erin Cannon Jorge Castañeda-Maza Soon-Woong Chang Derek Edward Lizabeth Howard Kamel Saidi David Shields Former Students Christine Alemany Rebecca Burleson Lynn Ann Carley Jason Eickmann Jorge Gomar Paul Goodrum Alexander Oey Mike Pappas Ana Maria Rodriguez Julien Saillard Algernon Stanley Kevin Terrien

  11. Causes, Effect & Solutions Poor Career Path Low Pay Transient Nature Poor Image Poor Environment WORKER SHORTAGE More Money Automation/ Technology Step Change Foreign Workers

  12. Causes, Effect & Solutions Poor Career Path Low Pay Poor Image WORKER SHORTAGE Step Change

  13. Construction vs. Manufacturing Wages 1970-2000 Non-supervisory workers. Average hourly wages. (1982-84=100) 16.0 14.0 12.0 10.0 (1982-84=100) Average hourly wages 8.0 Does not include fringe benefits 6.0 4.0 2.0 0.0 1970 1975 1980 1985 1990 1995 2000 Construction Manufacturing Construction Labor Wages Source: Business Statistics of the United States, Fifth Edition, 1999. Original sources: U.S. Department of Labor, Bureau of Labor Statistics U.S. Department of Commerce, Bureau of the Census

  14. Industry Image

  15. Industry Image

  16. Industry Image

  17. Motivation programs Incentives Day-care centers In-house training/ progression programs High-performance work teams/worker empowerment Prefabrication/ pre-assembly Metrics-based productivity Overtime/expense pay Vocational schools/early recruitment Information technology usage Foreman computer usage Career path Benefits Industry Image Recruitment Initiatives

  18. The Two-Tier Concept(A Step Change Approach)

  19. Work Force Needs Work Force Needs Total Tier I Unstructured Tier II Time

  20. Worker Profile Tier I Tier II Workers' Technical Skills Average Above Average Workers' Management Skills N/A Selected Career Path N/A Planned Training Task Oriented Multi-skilled Management Supervision High Moderate Crew Flexibility Reduced High Element Two-Tier Concept

  21. Two-Tier Concept Tier I Project Approach • Limited worker skills • Task training • High level of supervision/management Tier II Project Approach • Better, fewer workers • Worker management skills • HPWT management approach

  22. Construction Phase Success Index Tier II Tier I Unstructured (Current) Implementation Index Implementation Index Hypothesis 10 0 10 10

  23. Concurrent Efforts CII BM&M “Construction Success” CII RT 182 “Tier I” CCIS “Tier II”

  24. Tier I • More and less skilled workers • Task training • Limited craft flexibility • Shorter individual craft time on a project • More detailed supervision • “White collar” administration (planning, purchasing, scheduling, etc.) • Minimal worker loyalty to firm/project/ industry

  25. Tier II

  26. Tier II Strategy Objectives • Comparable or lower costs • Better quality • Better safety • Better schedule • Better productivity • More predictability • Less administration/supervision • Fewer workers/less turnover on a project • Higher company/project loyalty • Less attrition of workers (career path)

  27. Typical Worker Activity Current Tier II 50% Direct Work Direct Work 30% Support Work Support Work 20% Delays Delays

  28. Tier II Strategy Characteristics • Higher compensation for workers (wages & duration on site) • Fewer workers on site (less peak and turnover) • Different journeyman/helper mix • Higher worker craft skills (certified) • Multiskilled workers (certified) • Administration-skilled workers (certified) (computers, planning, scheduling, controls, etc.) • Less supervision/higher worker autonomy • Appropriate management approach (certified)

  29. How to Accomplish? • Phase in over time • Pilot projects for Tier I & Tier II strategies • Assessment/monitoring of effectiveness • Metrics

  30. A Necessary Element: Metrics

  31. Purpose of Metric • Measure Effectiveness • Provide Guidance for Implementation

  32. Expected Results Construction Success 0 10 Tier II Project Index (Level of Implementation)

  33. Tier II Project Index • Necessary Elements • Quantification

  34. Tier II Project Index Value Worker Capabilities Technical Skills 2.0 Management Skills 2.0 Project Execution Information Technology Utilization 2.0 Craft Utilization 2.0 Organization 2.0 10.0 Maximum Total

  35. Tier II Project Index Craft Technical Skills Index* (Max = 2.0) Craft Certification Technical Experience Continuous Training * For key crafts

  36. Tier II Project Index Craft Management Skills Index* (Max = 2.0) Administrative Computer Planning Job Management Work Record * For key crafts

  37. Tier II Project Index Information Technology Utilization Index (Max = 2.0) Integrated Information Access Hardware

  38. Tier II Project Index Craft Utilization Index (Max = 2.0) Crew Mix Use of Multiskilled Workers Worker Turnover Ratio

  39. Tier II Project Index Organization Index (Max = 2.0) Communications High Performance Work Place

  40. Tier II Project Index Value Worker Capabilities Technical Skills 2.0 Management Skills 2.0 Project Execution Information Technology Utilization 2.0 Craft Utilization 2.0 Organization 2.0 10.0 Maximum Total

  41. Expected Results Construction Success 0 10 Tier II Project Index (Level of Implementation)

  42. Work Force Needs Work Force Needs Total Tier I Unstructured Tier II Time

  43. Implementation Sessions Moderator Randy Evans, BE&K

  44. Implementation Sessions Agenda: • Elaboration of Two-Tier Concept • Tier II Elements and Metrics • Example Demonstration • Participant Input

  45. Your Duty Come to Implementation Session Volunteer Pilot Projects

  46. Construction Project Improvement Conference 2001: A Construction OdysseyTrends and Perspectives Construction Industry Institute Austin, Texas

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