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Increase Workforce and Project Management Productivity with Smart Estimating

Understanding Labor Units. Increase Workforce and Project Management Productivity with Smart Estimating. Thursday, February 26, 2009 George Hague, President & CEO ConEst Software Systems. George Hague President & CEO ConEst Software Systems. Electrician Contractor Estimator

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Increase Workforce and Project Management Productivity with Smart Estimating

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  1. Understanding Labor Units Increase WorkforceandProject Management ProductivitywithSmart Estimating Thursday, February 26, 2009 George Hague, President & CEO ConEst Software Systems

  2. George Hague President & CEO ConEst Software Systems Electrician Contractor Estimator NEC Code Provider Software Design Engineer

  3. EDUCATION COMMUNICATION ESTIMATING

  4. TODAY’S ECONOMY No Help Construction Recession of Late 80s - Early 90s Limited Labor Resources To increase productivity... OPTIMIZE!

  5. EDUCATION ASmallInvestment... ...AnAstronomicalReturn

  6. Upjohn Institute For Employment Research, 1992 EDUCATION=PRODUCTIVITY!

  7. Education Increases Productivity If we assume “moderate” = 4% and “little” = 2% 46.2 x 4% 23.1 x 2% 30.8 x 0% 2.3% ExpectedIncrease = Upjohn Institute For Employment Research, 1992

  8. AnEducatedWorkforce Equals a PRODUCTIVE QUALIFIED WORKFORCE

  9. SECURE THE FUTURE Use available resources • Apprenticeship Training • Vocational Schools • Local Association Apprenticeship Education • Workshops • Seminars FORMANAGEMENTANDFIELD PERSONNEL

  10. BUSINESS SMARTS Know Your Company’sStrong Points... …And Its Weak Points

  11. It’s Simple Economics Market PROFITABILITY

  12. The Ability of Every Company Starts At THE TOP President Timely Submittals Stock Procurement Information Flow Field PersonnelVSManagement

  13. What is a Labor Unitand How Do We Use Them? A Labor Unit is a benchmark used by a company or an estimator to determine the labor value of an installation Definition:

  14. A Labor Unit is a Benchmark • A labor unit is not absolute • A labor unit is a starting point • A labor unit is only a benchmark

  15. What makes up a Labor Unit? • Actual Installation 69.0% • Non-Productive 2.5% • Study Plans 2.5% • Material Procurement 2.5% • Receiving & Storage 2.0% • Mobilization 5.0% • Layout 6.0% • Clean-up 2.0% • Punch List 5.0% • Coffee Breaks 3.5%

  16. If three electrical contractors produced the same job, would all three complete the job in the same time? NO

  17. How can astandard set of labor units work for all three companies? • Study company’s job history and job costing records • Factoring • The estimator must become familiar with the company’s ability to produce work compared to the labor units

  18. The Successful Electrical Contractor……. • Keeps accurate records of job costs • Is constantly revising factors • Uses a standard set of labor units for consistency

  19. How can several estimators use the same database of labor units if each estimator has individual concepts as to what the labor unit represents? • Units are standard as to listing but individual as to interpretation • His or Her own interpretation of its meaning • Factoring

  20. Example Two estimators are using the same labor unit to install a loadcenter Estimator #1uses a 4-hr labor unit to represent the entire installation including mounting, terminations, and installation of breakers Estimator #2uses 4-hrs for the panel plus labor units for each breaker installed for a total of 6-hrs Which estimator is correct? Both Are

  21. Estimator #1 Total estimated hrs 4.0 50% factor .5 Estimator #2 Total estimated hrs 6.0 33.3% factor 0.33 Corrected hrs2.0 Corrected hrs 2.0 Applying Job Costing Factors Company history documents a 2-hour installation

  22. It would be impossible to relate to all influences that affect labor • Job degree of difficulty • Installation degree of difficulty • The company’s ability to perform against the labor unit Here are three principal factors

  23. Job Degree of Difficulty Type of project • Residential • Commercial • Institutional • Industrial • Special

  24. Construction Type Residential Speculation & High-end Homes & Apartments Commercial Office , R&D, Stores, Malls & Theaters Normal X X Difficult Most Difficult Institutional Schools, Hospitals, Institutions, Jails Industrial Manufacturing Facilities and Power Plants Special Sewage & Water Treatment Plants, Mines & Foundries X X X NECALabor Units

  25. Installation Degree of Difficulty • Weather • Contractor • Sub-Contractor • Mounting Elevations • Weight • Occupancy • Duplication

  26. Weather Labor units are established for the most favorable conditions Temperature variances affect productivity Best appraised based on training & experience

  27. Contractor & Sub-Contractor Coordinates work well or not Responds timely to RFI’s Keeps a clean & conducive work place

  28. Mounting Elevations • Ceiling Heights Today's standard is motorized man lifts Rolling staging over 10’ add 5% per foot for one ground man & one top side • Floors of a Building 1% per floor starting with the 3rd floor

  29. Weight • Obtain weight data on special equipment • Hours per pound are not consistent • Develop criteria using job experience data • Equipment manufactures are a good source for labor requirements on special equipment

  30. Occupancy • The standard labor unit should be increased by 50% up to 100 % in occupied areas

  31. Duplication • Fixtures in the same concentrated area • Parallel conduit runs • Multiple conductors in a raceway • Breakers in the Same Distribution Equipment • Bus duct in one area

  32. Company’s Ability to Perform Against the Labor Unit • Submittals approved in a timely manner • The right material in the right quantities at the right time • Tools & equipment on the job when needed • Drawings are accurate & marked up including documentation • Job progress properly tracked • Company supported education • Office provides timely administrative support • Work coordinated with GC & all trades

  33. UsingInformationAs A Management Tool 200 Hours JOB: INFORMATION M T W Th F 5 5 5 5 5 =200

  34. ManagingWithoutInformation JOB: ??????? Hours NO INFORMATION F M T W Th 6 6 6 6 6 =240

  35. Creative Information Management 200 Hours JOB: M T W Th F 4 4 6 6 4 = 192

  36. Managing With Information M T W Th F = 200 5 5 5 5 5 Managing Without Information M T W Th F = 240 6 6 6 6 6 Creative Information Management M T W Th F = 192 4 4 4 6 6

  37. Accuracy Labor Units

  38. Estimating Computers AND A Natural Fit!

  39. Computerized Estimating Cuts Time in Half!

  40. Unit Pricing Assembly Take-off!

  41. Computerized Estimating Consistent Dependable Integrated Smart

  42. Communication - Report Development Project Management Material Procurement

  43. In Summary

  44. EDUCATION COMMUNICATION COMPUTERIZATION

  45. Educate Project Managers with Computer-Aided Applications

  46. Educate Estimators with a Smart Estimating System

  47. Educate FieldPersonnel with The Right Tools Industry Knowledge &

  48. Thank You

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