Preparing for the future

Many contractors are still keeping busy by working off their backlog for 2008 while others are struggling to get more work. Those maintaining workload today may see a slower time on the horizon. Whether you are now facing real economy slowdown or seeing the wave ahead, there are two points to keep in mind: 1) business cycles are just that -“cycles.” This one may have a deeper low, but will start on the upswing in the future and 2) NOW is the best time to prepare for the coming economy growth. Here are some ways to prepare:

Review your processes, especially for ordering material, doing payroll, scheduling crews and tracking tools and rental equipment. Almost all contractors are in need of better processes. How are yours doing? Involving your key employees, who work in a critical process, map out that process. Look to eliminate wasted steps and reduce processing time.

Engage your employees in identifying and making improvements. Ask them to spot ways to improve. The current economy climate can provide an incentive to do this if employees feel improvements will help them stay employed. (It can also be a disincentive, if employees feel any improvements will mean downsizing – of them. Don’t make this a reality.)

Look for waste – do more (not less) muda walks. This is more than just walking around. Watch long enough to see what is happening and the real way work is done and spot waste. “Long enough” means hours, not minutes. If you don’t have the time now, when will you have the time to drive out waste?

Implement the 5S’s NOW. If you are not doing the 5S’s you still have many treasure hunts going on in your office, at the job sites and in your shop.

Get rid of inventory that is not being used or is realistically not going to be used. HINT – if you haven’t used it in a year - you probably won’t. Some contractors maintain they have no or very little inventory, not because they don’t have it. But because they just don’t call it “inventory.” Unused material, tools and equipment, stashes and other forms of semi-hidden material are still inventory!

Invest in training NOW. You will need skilled employees when growth comes. They need to gain needed skills now. Rotate assignments to help employees broaden their skills. Do formal training, OJT training and simulation training. Learn how to implement the Last Planner System NOW, so you don’t go cold turkey when the general contractor puts it in the bid specifications for that big job coming up soon. This would also be a good time to train on the Last Planner system with your key partners – other subs and generals. Do it together so you can do projects together better.

It may seem odd to be doing these things when you have little work to do - but the best time to learn and gain more skills is now - stay ahead of the curve.

Built in quality

For Built-in Quality, Simple is Best – consider how Manufacturing does it and how this can apply to construction:



“As part of our Lean manufacturing benchmarking trip we visited a bus manufacturing plant in Japan with a group of executives from an aerospace company on February 27, 2006. We spent 6 hours observing their Lean manufacturing operation in action and asking about their kaizen efforts and management philosophy for continuous improvement. Among the many things we learned was the ‘simple is best’ approach to built-in quality. They way they guarantee quality through gemba kaizen (immediate, on-site improve) is quite ingenious.



“The production line had ‘Quality Gates’ between each major process where inspectors would check the quality of the work performed by the workers in the process being checked. At first glance the number of inspections and checks might make you ask ‘is this built-in quality?’



“What was unique and smart about the whole operation was that the quality checkers were all production employees with lots of experience in the process they were checking. If they found a problem, they would call the employee over and show him or her what the problem was and how to fix it. The employee would then fix it and return back to their workstation.



“In this case, the quality function was being used as a training tool and a way to do kaizen. If the employee who was having problems with quality improved their performance they were rewarded with a gift certificate for beer. The management summarized the thinking behind their approach to quality kaizen as follows:

1. A person who knows the job, and who has done the job well is your best inspector because they know what aspects to watch out for.
   
2. It's easier to take instruction from a person who has actually done the work before than from an inspector who is not part of production. A person who has done the job before will be your best trainer.
   
3. The employee who made the mistake is called out of the area and he or she will have to fix their mistake. At this time the trainer can show them any short cuts or impart some wisdom on the subject that the employee may not have grasped fully.
   
4. By training the person immediately after the mistake is made, they will understand the countermeasure needed and remember it most easily.
   
5. Recognizing that people may feel bad after being told they have produced bad quality, and in order for people not to feel like this process is punishment, once the worker shows improved performance based on the new standard they are given a reward. In this case they figured that beer would be a nice touch.

“This was a classic case where the company asked itself what results it wanted (quality kaizen, people involvement, built in quality) then found the simplest and most direct method get them there.”



By NWLEAN Digest - Brad - March 7, 2006

How will you train on Lean?

Here is a good article on how to implementing Lean – need education.

Managing Projects

In his book Whale Done! Ken Blanchard (author of the One Minute Manager) tells how trainers never use negative feedback when working with dangerous animals. Hal Macomber asks, “If killer whales can be trained to do the spectacular things that they do with only positive feedback, then why would we want to use negative feedback with the even more dangerous human beings?” (1)



Blanchard explains the main ways the trainers are able to get the whales to perform, this includes:

Building trust

Accentuating the positive

Redirecting energy away from negative behavior

Catching them doing the right things

Most project managers, superintendents, and foreman take the opposite approach and mistakenly feel that the more negatively critical they are to their subordinates and other trades, the more they will be successful. Many are not critical of just bad actions, but go on to question people’s intelligence and motivation. In doing projects, we need to be honest about incorrect performance, but we can do so without being critical of people. We can give feedback without attacking the person. We can first address what was done right and then what needs improvement – “what” not “who.” By dealing with the actions and outcomes and not questioning motivations, we can be much more successful. Of course this will happen best when they know we actually care about them as human beings and not things doing work. We build trust by showing respect.



One contractor set a plastic bottle in the center of their meeting room and any one, giving negative criticism of another person (employee, subcontractor, supplier, etc.) or company, had to put $5.00 in the bottle. The funds went to a local charity.



How do you give feedback? People respond better with positive reinforcement.



(1) Hal Macomber, Feedbitz, Nov. 30, 2008



* Last Planner System is a trademark of the Lean Construction Institute.

Learning Opportunities

You may be interested in attending one of these training seminars:

June 4, 2009 – Executive Lean Overview - Phoenix, AZ, 7 Am to noon, sponsors: NECA, P.I.P.E. and SMACNA-AZ, contact P.I.P.E. At 480-966-0377 or pipetrust@qwestoffie.net or NECA at 602-263-0111 ext.12 or debra@azneca.org or SMACNA Arizona at 602-549-9572 or smacna@smacna-az.org

Sept. 17, 2009 - Customer Loyalty by Design, – Phoenix, AZ – Sponsor: PIPE & 469 JAC, contact Cathy at pipetrust@qwest.net

Oct. 6, 2009 - Lean Works in Construction – Milwaukee, WI – Sponsor: Plumbing Mechanical Sheet Metal Contractors Alliance, Contact: Dajen Bohacek at 414/543-7622 or dajen@pmsmca.com Must be a SMACNA member company, associate or sponsored by one to participate.

Oct. 15. 2009 - Introduction to Lean in Service, – Phoenix, AZ – Sponsor: PIPE & 469 JAC, contact Cathy at pipetrust@qwest.net

Contact Dennis Sowards if you want a customized workshop exclusively for your company.



Other Lean Construction Events

• May 28, 2009 - Introduction to Value Stream Mapping San Diego, CS, sponsored by the LCI San Diego Chapter (San Diego, CA), - Details and registration
• June 11-12, 2009 - Introduction to Lean Construction: Creating a New Common Sense, Arlington , VA
• June 16-17, 2009 - Introduction to Lean Construction: Creating a New Common Sense, St. Louis, MO
• June 18-19, 2009 - Lean Design Forum - LCI & Project Production System Laboratory, St. Louis, MO, Details and registration
• Oct. 13, 2009 - Kaizen Events – Improving Your Business’ Efficiency in Just One Week (A New Horizons Foundation Project), 2009 SMACNA Convention, Palm Springs, CA, details

A Quick Thought

Failure is our most important product. – R. W. Johnson Jr. President of Johnson & Johnson from 1961 to 1965

We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. Part of the Johnson & Johnson Credo:

For more information about Lean applications in construction and especially the 5S’s contact Dennis Sowards at his office at 480-835-1185 or his cell at 602-740-7271

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