Total Construction Service

1. Total Construction Service

2. Total Construction Service A construction company offers customers products including a range of clearly defined options a range of financial options servicing and maintenance packages a firm price and fixed completion date

3. Industrialised Housing Housing using factory produced standardised components provides the basis for many of the best examples of Total Construction Service companies This is because there is a large demand for housing

4. Industrialised Housing • Customers are offered a wide range of choice in the size and layout of their houses • Sales offices enable customers to discuss their needs and consider the latest designs • Show rooms enable customers to see and try the options

5. Industrialised Housing

6. Industrialised Housing • Once a design, price and completion date are agreed • Parts and sub-assemblies are manufactured • The site is cleared, and foundations and underground services are produced • Prefabricated components are delivered and assembled • The completed house is handed over

7. Industrialised Housing • World class quality • Quality circles require teams to relentlessly improve their own performance • Companies invest in training their staff • R&D departments steadily improve the products and working methods • Companies hold seminars with customers to discuss possible improvements

8. Industrialised HousingCompany Strategy

9. Total Construction Service Companies undertaking General Construction • Develop over many decades • Build secure demand • Focus on quality and efficiency • Develop long term relationships • Invest in their staff • Invest in R&D

10. Total Construction Service • Process delivers: • Reliable quality – facilities complete at hand over and fully working • Completion exactly on time every time • Highly efficient as judged by many international research studies • Excellent safety record

11. Brief • Results from discussions between customer’s organization and total construction service company sales staff • Sales staff actively search for opportunities where construction can provide real benefits to a customer’s business • Brief is very detailed and describes everything the customer needs

12. Design and Plan Produced under the direction of experienced project manager using highly developed systems which embody the company’s design details and construction methods

13. Design and Plan • Drawings show every detail of every element • National standards mean the specification can be very brief • Every days’ production is planned in detail • Procurement and manufacturing planned to feed into the production plan • Commissioning is planned in complete detail including setting exact targets for every test

14. Procurement • Project manager selects subcontractors from amongst those who have worked with the company for decades • Project manager states the work to be done, the exact dates it will be carried out and the price to be paid • The subcontractors agree

15. Manufacture, Production and Commissioning • Project manager and his team based on site • The project manager briefs the whole work force at 8.00 am • Project manager meets with all the foreman at 3.00 pm to solve any problems and agree the next day’s work • Deliveries are made exactly on time • Work continues until the day’s work is complete

16. Quality and Safety • Use tried and tested methods • Measure performance continuously • Safety built into production methods • Use protective screens • Keep site tidy • Driving principle of doing work right first time • Correcting mistakes costs much more

17. Problems • Tackled immediately • Delays corrected by working longer days, at week ends or bring in night shift • Project returned to original plan as quickly as possible • Nothing ever allowed to cause a project to finish late or cause a customer to be asked for additional money

18. Quality Circles • Teams meet every week to discuss work and identify and consider improvements • Best ideas are taken to research institute • Ideas which provide real benefits are discussed with all likely to be affected • Tried on one project and evaluated • If the benefits are real, the idea is adopted • Team performance evaluated every six months

19. Research Institute • Key part of company’s success and reputation • Most successful companies have large well staffed and equipped institutes • Support project teams • Do long-term research into major improvements • Produce eye catching ideas for the media

20. Total Construction ServicePerformance • International comparisons suggest construction costs about 25% lower than alternative strategies • Quality more reliable • Completion on time significantly more reliable

21. Total Construction Serviceacts on the following propositions • Reduce the number of teams involved • Improve the quality of relationships • Reduce performance variability • Reduce external interference plus

22. Total Construction Serviceacts on the following propositions • Select teams competent in the technologies required by the project • Ensure teams accept the agreed objectives • Ensure teams are motivated to achieve agreed objectives • Foster accurate communications between teams • Minimise the effort needed to achieve accurate communications between teams

23. Total Construction Serviceacts on the following propositions • Minimise the length and intensity of negotiations over the transactions which bring teams into the project organization • Ensure teams regard the transactions as advantageous to themselves • Minimise the resources teams devote to improving the terms of the transactions which brought them into the project organization

24. Total Construction Serviceacts on the following propositions • Satisfy the requirements of local or specialised markets to ensure company’s survival • Develop teams with well developed skills and knowledge which match the requirements of projects • Develop teams integrated by established relationships • Improve the quality of support provided to teams by their companies

25. Total Construction Serviceacts on the following propositions • Foster innovations which match the requirements of projects • Ensure the use of effective information systems • Establish values which run consistently throughout their organization • Ensure their organization acts in ways which are intended and authorised

26. Total Construction Serviceacts on the following propositions • Ensure communications are effective and result in common understandings • Ensure transactions are agreed with minimum effort, accepted as fair, foster established relationships, and are acted on in the spirit in which they were agreed • Ensure their organization forms established relationships with other organizations

27. Total Construction Serviceacts on the following propositions • Ensure their organization collects, reviews and acts on feedback about the effects of its action on its objectives • Ensure their organization collects, reviews and acts on feedback about the effects of established norms and procedures

28. Project using Total Construction Service The project is to construct a new hotel on a virgin site. The hotel has 300 guest rooms and the other spaces expected in a 5* hotel The building is 10 stories high with a steel structural frame, concrete beam floors and roofs, and high quality, pre-fabricated external cladding.

29. Teams Team-days Brief 1 80 Design 10 460 Plan 1 50 Procurement 4 120 Manufacturing 8 150 Production 32 1340 Commissioning 4 100 TOTALS 60 2300

30. For a project with 60 teams (N=60) Possible relationships = 60 x 59/2 = 1770 1196 of these do not occur Actual relationships 1770 – 1196 = 574

31. Largest number of teams in one time interval is 20 in 13th time interval Technical design teams are producing production information for the last remaining components Half of the manufacturing teams are manufacturing fully designed components Substructure production is in full swing The work is supervised by the control teams 20 x 19/2 = 190 possible relationships

32. During the 13th time interval the following teams work simultaneously 2 out of 4 technical design teams 2 out of 2 production information teams 2 out of 2 plan and control teams 1 out of 1 contracts and payment system teams 4 out of 8 manufacturing teams 3 out of 3 substructure teams This gives a total of 14 teams with 91 relationships

33. Established Relationships Every team on a project has established relationships with at least one but often several other teams giving a total of 568 established relationships Established Relationships Indicator ER=568/574=0.99

34. The relationship fluctuation indicator FE = 0.99 This reflects a strong influence of established relationships throughout the project because both ER and FE are comparatively really high Total construction service companies are based on established relationships developed over many past projects

35. Relationship Quality Indicator for established relationships ranges from 0.95 to 0.99 Total Relationship Quality Indicator 560/574=0.98 The high number of established relationships together with the number of high values for individual Relationship Quality Indicators means the total Relationship Quality Indicator is good because the 568 established relationships out of possible 574 relationships are of very high quality

36. The project organisation is not overly complex There are 30 time intervals out of a potential maximum of 119 The intervals are relatively short in comparison to total project duration (prevent escalation of problems when teams interact for a prolonged period) Relationships configuration complexity indicator = 0.83

37. The past performance of the 60 teams over their previous 10 projects provides team Performance Variability Indicators which range from 0.95 to 1.0 Performance Variability Indicator Rp=0.99

38. Historical records for projects using Total Construction Service gives External Interference Indicator = 0.84

39. Project using Total Construction Service Established Relationships ER=0.99 Relationship Fluctuation FE=0.99 Relationship Quality QR=0.98 Relationship Configuration CR=0.83 Performance Variability Rp=0.99 External Interference I=0.84