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

A Two-Tier Work Force StrategyA Two-Tier Work Force Strategy

Richard L. TuckerRichard L. Tucker

Center for Construction Industry Studies

(CCIS)


(CCIS)

CPI Conference 2001

A Two-Tier Work Force StrategyA Two-Tier Work Force Strategy

Richard Tucker


Richard Tucker


CPI Conference 2001

AgendaAgenda

• Center for Construction Industry Studies

• Work Force Issues

• The Two-Tier Concept

• Tier II

• A Necessary Element: Metrics

• Path Forward

• Center for Construction Industry Studies

• Work Force Issues

• The Two-Tier Concept

• Tier II

• A Necessary Element: Metrics

• Path Forward

Center for Construction

Industry Studies

Center for Construction

Industry Studies

Center forConstruction Industry Studies

Center forConstruction Industry Studies

• Established in 1996

• Funding from Sloan Foundation

• Strong CII Interface

• Research Thrust Areas

• Established in 1996

• Funding from Sloan Foundation

• Strong CII Interface

• Research Thrust Areas

http://www.ce.utexas.edu/org/ccis/

http://www.ce.utexas.edu/org/ccis/

CCIS Thrust AreasCCIS Thrust Areas

• Fully Integrated and Automated Project Processes (FIAPP)

• Owner/Contractor Work Structure (OCWS)

• Technology (Construction Methods)

• Construction Work Force

• Fully Integrated and Automated Project Processes (FIAPP)

• Owner/Contractor Work Structure (OCWS)

• Technology (Construction Methods)

• Construction Work Force

Work Force IssuesWork Force Issues

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

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

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

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

Work Force Academic EffortWork Force Academic Effort

Richard TuckerCarl HaasJohn Borcherding

Richard TuckerCarl HaasJohn Borcherding

Bob GloverBill Kelly

Stephen Thomas

Bob GloverBill Kelly

Stephen Thomas

FacultyFaculty

Nicole BalliErin CannonJorge Castañeda-MazaSoon-Woong Chang

Nicole BalliErin CannonJorge Castañeda-MazaSoon-Woong ChangChristine AlemanyRebecca BurlesonLynn Ann CarleyJason EickmannJorge GomarPaul Goodrum

Christine AlemanyRebecca BurlesonLynn Ann CarleyJason EickmannJorge GomarPaul Goodrum

Current Student

s

Current Student

s

Former Student

s

Former Student

s

Derek EdwardLizabeth HowardKamel SaidiDavid Shields

Derek EdwardLizabeth HowardKamel SaidiDavid ShieldsAlexander OeyMike PappasAna Maria RodriguezJulien SaillardAlgernon StanleyKevin Terrien

Alexander OeyMike PappasAna Maria RodriguezJulien SaillardAlgernon StanleyKevin Terrien

Causes, Effect & Solutions

WORKER SHORTAGEWORKER SHORTAGE

Low PayLow PayPoor

EnvironmentPoor

Environment

Poor Career Path

Poor Career Path Transient

NatureTransient

Nature

More MoneyMore Money

Foreign WorkersForeign Workers

Automation/TechnologyAutomation/Technology

Poor ImagePoor

Image

Step Chang

e

Step Chang

e

Causes, Effect & Solutions

WORKER SHORTAGEWORKER SHORTAGE

Low PayLow Pay

Poor Career Path

Poor Career Path

Poor ImagePoor

Image

Step Chang

e

Step Chang

e

Construction Labor Wages

Source: Business Statistics of the United States, Fifth Edition, 1999.

Original sources: U.S. Department of Labor, Bureau of Labor StatisticsU.S. Department of Commerce, Bureau of the Census

Construction vs. Manufacturing Wages 1970-2000Non-supervisory workers. Average hourly wages.

(1982-84=100)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

1970 1975 1980 1985 1990 1995 2000

Av

era

ge

ho

url

y w

ag

es

(19

82

-84

=1

00

)D

oes

no

t in

clu

de

frin

ge

ben

efit

s

Construction Manufacturing

Industry Image

Industry Image

Industry Image

Initiatives

• Motivation programs

• Incentives

• Day-care centers

• In-house training/ progression programs

• High-performance work teams/worker empowerment

• Prefabrication/ pre-assembly

• Metrics-based productivity

• 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

• Overtime/expense pay

• Vocational schools/early recruitment

• Information technology usage

• Foreman computer usage

• Career path

• Benefits

• Industry Image

• Recruitment

The Two-Tier Concept(A Step Change

Approach)

The Two-Tier Concept(A Step Change

Approach)

Work Force Needs

TimeTime

Work Force Needs

Work Force Needs

TotalTotalTier ITier I

Unstructured

Unstructured

Tier IITier II

Two-Tier Concept

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

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

ElementElement

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

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

HypothesisHypothesis

Unstructured

(Current)

Unstructured

(Current)

00 10101010

1010

Construction Phase Success Index

Construction Phase Success Index

Tier IITier IIImplementation

IndexImplementation

Index

Tier ITier IImplementation

IndexImplementation

Index

Concurrent Efforts

CIIBM&M

“ConstructionSuccess”

CIIBM&M

“ConstructionSuccess”

CCIS“Tier II”

CCIS“Tier II”

CIIRT 182“Tier I”

CIIRT 182“Tier I”

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

• 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

Tier IITier II

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)

• 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)

Typical Worker Activity

30%

Support Work

30%

Support Work

50%

Direct Work

50%

Direct Work

20%

Delays

20%

Delays

Support WorkSupport Work

Direct WorkDirect Work

DelaysDelays

CurrentCurrent Tier IITier II

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)

• 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)

How to Accomplish?How to Accomplish?

• Phase in over time

• Pilot projects for Tier I & Tier II strategies

• Assessment/monitoring of effectiveness

•Metrics

• Phase in over time

• Pilot projects for Tier I & Tier II strategies

• Assessment/monitoring of effectiveness

•Metrics

A Necessary Element: Metrics

A Necessary Element: Metrics

Purpose of Metric

• Measure Effectiveness

• Provide Guidance for Implementation

• Measure Effectiveness

• Provide Guidance for Implementation

Expected ResultsExpected Results

Construction Success


Tier II Project Index(Level of Implementation)


00 1010

Tier II Project IndexTier II Project Index

•Necessary Elements

•Quantification

•Necessary Elements

•Quantification


Worker Capabilities

Technical Skills 2.0

Management Skills 2.0

Project Execution

Information Technology Utilization 2.0

Craft Utilization 2.0

Organization 2.0

Worker Capabilities



Project Execution



Organization 2.0

ValueValue

Maximum Total

Maximum Total

10.010.0

Tier II Project Index

Craft Technical Skills Index* (Max = 2.0)

Craft Certification

Technical Experience

Continuous Training

Craft Technical Skills Index* (Max = 2.0)

Craft Certification

Technical Experience

Continuous Training

* For key crafts


Craft Management Skills Index* (Max = 2.0)

Administrative

Computer

Planning

Job Management

Work Record

Craft Management Skills Index* (Max = 2.0)

Administrative

Computer

Planning

Job Management

Work Record

* For key crafts


Information Technology Utilization Index (Max = 2.0)

Integrated Information Access

Hardware

Information Technology Utilization Index (Max = 2.0)

Integrated Information Access

Hardware


Craft Utilization Index (Max = 2.0)

Crew Mix

Use of Multiskilled Workers

Worker Turnover Ratio

Craft Utilization Index (Max = 2.0)

Crew Mix

Use of Multiskilled Workers

Worker Turnover Ratio


Organization Index (Max = 2.0)

Communications

High Performance Work Place

Organization Index (Max = 2.0)

Communications

High Performance Work Place


Worker Capabilities



Project Execution



Organization 2.0

Worker Capabilities



Project Execution



Organization 2.0

ValueValue

Maximum Total

Maximum Total

10.010.0

Expected ResultsExpected Results





00 1010

Work Force Needs

TimeTime

Work Force Needs

Work Force Needs

TotalTotalTier ITier I

Unstructured

Unstructured

Tier IITier II

Implementation Sessions

Moderator

Randy Evans, BE&K

Moderator

Randy Evans, BE&K

Implementation Sessions

Agenda:

• Elaboration of Two-Tier Concept

• Tier II Elements and Metrics

• Example Demonstration

• Participant Input

Agenda:

• Elaboration of Two-Tier Concept

• Tier II Elements and Metrics

• Example Demonstration

• Participant Input

Your Duty

Come to Implementation

Session

VolunteerPilot Projects

Come to Implementation

Session

VolunteerPilot Projects

Construction Project Improvement Conference

Construction Industry Institute

Austin, Texas

2001: A Construction Odyssey

Trends and Perspectives

2001: A Construction Odyssey

Trends and Perspectives

Documents

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