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Field Management Opportunities & Obstacles

JOB LOOP. 1. . 0 . Project. Qualification. 2. . 0 . Project. Estimating. 3. . 0 . Project. 4. . 0 . Project. Pricing. Management. 5. . 0 . Post. Project Review. Field Management Opportunities & Obstacles. Project Manager Academy Section Ten. Performance Objectives.

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Field Management Opportunities & Obstacles

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  1. JOB LOOP 1 . 0 Project Qualification 2 . 0 Project Estimating 3 . 0 Project 4 . 0 Project Pricing Management 5 . 0 Post Project Review Field Management Opportunities & Obstacles Project Manager Academy Section Ten

  2. Performance Objectives • Identify obstacles to producing a job profit • Control obstacles to producing a job profit • Understand how to address job obstacles

  3. Identify Obstacles to Producing a Job Profit • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________

  4. Identify Controllable Obstacles to Producing a Job Profit • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • Hand out Productivity Improvement Survey

  5. Identify Controllable Obstacles to Producing a Job Profit • Which obstacles are the most common and recur on many jobs? • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________ • _________________________________________

  6. Whose Job Is It To Control These Obstacles? • Management: • The act, manner, or practice of managing, supervising, or controlling • Field Manager: • One who manages, supervises, or controls construction activities in the field. Commonly referred to as leadman, foreman, or superintendent

  7. Can Supers & Foremen address field obstacles? How? Give Examples ____________________________________________________________________________________________________________________________________________________________________________________________ Project Managers, Estimators, Top Management should help remove any obstacle that prevents the field from succeeding Gilbert Temple Ductwork example How Can Management Address These Obstacles?

  8. Turning Obstacles into Opportunities How can we turn our most common obstacles into opportunities? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

  9. Turning Obstacles into Opportunities Prioritize your top 3 solutions ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

  10. Perceptions Survey Productivity Improvement Survey

  11. __________% Quality People. Building Solutions It is a mindset What is the Average Net Profit (Before Taxes) of Companies Like Ours?

  12. Summary • Identify controllable obstacles and manage better than our competition • Better obstacle management depends on the entire company’s contribution, knowing the past way will not work, and accepting change in processes and behaviors • Ask yourself – “Is this a controllable obstacle?” • What can I (my team) do to remove it?

  13. If you made a mistake, admit it and go on. Celebrate mistakes, not for the purpose of repeating them, but for “lessons learned” for the entire team. Never engage in the blame & shame game. We all make mistakes. Discuss everything. Conflict on ideas is good but be respectful.

  14. Take Aways • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  15. JOB LOOP 1 . 0 Project Qualification 2 . 0 Project Estimating 3 . 0 Project 4 . 0 Project Pricing Management 5 . 0 Post Project Review The Impact of Productivity Changes on Financial Performance Project Manager Academy Section Ten

  16. Which Items Can You Impact as a Project Manager?

  17. Understanding the Economics of Cash Productivity

  18. Understanding the Economics of Cash Productivity

  19. Understanding the Economics of Cash Productivity

  20. Understanding the Economics of Cash Productivity

  21. Understanding the Economics of Cash Productivity • Which Strategy produces the greatest effect to the bottom line? • Productivity improvement starts from the top down. • It is everyone’s responsibility – President, Sales & Estimating, Project Management, Field Management • Management Improvement of Field Productivity

  22. Understanding the Economics of Cash Productivity • Are you doing the right things to improve productivity? • Are you doing upstream measurement? • Daily huddles or daily goals • 2-3 week look aheads • Prefabrication planning • Measuring to change operational behaviors • How do you do productivity tracking?

  23. % Increase/ % Change Decrease in New Net $ Change in in Net Labor Profit % Net Profit Profit Productivity 30.00 12.00 2,700,000 300.00 20.00 9.00 1,800,000 200.00 10.00 6.00 900,000 100.00 5.00 4.50 450,000 50.00 2.00 3.60 180,000 20.00 0 3.00 0 0 -2.00 2.40 -180,000 -20.00 -5.00 1.50 -450,000 -50.00 -10.00 0.00 -900,000 -100.00 -20.00 -3.00 -1,800,000 -200.00 -30.00 -6.00 -2,700,000 -300.00 The Effect of Labor Productivity Changes on Net Profit

  24. Materials Direct Labor Direct Costs (90%) Equipment Other Direct Costs (7%) Overhead (3%) Net Profit Where Does the Dollar Go?

  25. Perceived Net Profit vs. Reality Group’s perception of net profit: ________% ________%________% Low Average High Actual net profit for all U.S. contractors: 2.5% (Before Taxes)

  26. Summary • Increasing productivity is the single most important improvement we can make to the bottom line. • A change in Labor Productivity has a much greater effect on Net Profit % than an increase in Sales or a reduction in overhead • Increasing productivity allows us to take on more work with the same work force. • Productivity improvement is a team commitment.

  27. Take Aways • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

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