A TwoTier Work Force Strategy

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A Two-Tier Work Force Strategy
Center for Construction Industry Studies (CCIS)

• Richard L. Tucker

CPI Conference 2001
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A Two-Tier Work Force Strategy
Richard Tucker Center for
Construction Industry Studies
CPI Conference 2001
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Agenda

• Center for Construction Industry Studies
• Work Force Issues
• The Two-Tier Concept
• Tier II
• A Necessary Element Metrics
• Path Forward

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Center for Construction Industry Studies
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Center forConstruction Industry Studies

• Established in 1996
• Funding from Sloan Foundation
• Strong CII Interface
• Research Thrust Areas

http//www.ce.utexas.edu/org/ccis/
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CCIS Thrust Areas

• Fully Integrated and Automated Project Processes
  (FIAPP)
• Owner/Contractor Work Structure (OCWS)
• Technology (Construction Methods)
• Construction Work Force

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Work Force Issues
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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 BMM (Construction Success)
• July 2001 - Tier II Workers Workshop
• August 2001 - CII Annual Conference
• September 2001 - CPI Conference
• Future - Pilot Projects

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Work Force Steering Committee

• Dan Bennet NCCER
• David Bush Adena Corporation
• Keith Byrom Zachry Construction Corp.
• Randy Evans BEK
• Ned Givens CII
• Ken Hedman Bechtel
• Jim Jeffress DuPont
• Ted Kennedy BEK
• Doug McCarron United Brotherhood of Carpenters
  and Joiners of America
• Jim Mortell Cherne Contracting Corp.
• James Slaughter SB Engineers and Constructors
• Kent Underwood Solutia Inc.
• Lowell Wiles Williams Group International

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Work Force Academic Effort

• Richard Tucker
• Carl Haas
• John Borcherding

Bob Glover Bill Kelly Stephen Thomas
Faculty
Nicole Balli Erin Cannon Jorge Castañeda-Maza Soon
-Woong Chang
Current Students
Derek Edward Lizabeth Howard Kamel Saidi David
Shields
Christine Alemany Rebecca Burleson Lynn Ann
Carley Jason Eickmann Jorge Gomar Paul Goodrum
Former Students
Alexander Oey Mike Pappas Ana Maria
Rodriguez Julien Saillard Algernon Stanley Kevin
Terrien
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Causes, Effect Solutions
Poor Career Path
Low Pay
Transient Nature
Poor Image
Poor Environment
WORKER SHORTAGE
More Money
Automation/ Technology
Step Change
Foreign Workers
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Causes, Effect Solutions
Poor Career Path
Low Pay
Poor Image
WORKER SHORTAGE
Step Change
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Construction Labor Wages
Source Business Statistics of the United States,
Fifth Edition, 1999. Original sources U.S.
Department of Labor, Bureau of Labor
Statistics U.S. Department of Commerce, Bureau
of the Census
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Industry Image
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Industry Image
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Industry Image
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Initiatives

• 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

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The Two-Tier Concept(A Step Change Approach)
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Work Force Needs
Work Force Needs
Total
Tier I
Unstructured
Tier II
Time
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Two-Tier Concept
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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

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Hypothesis
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0
10
10
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Concurrent Efforts
CII BMM Construction Success
CCIS Tier II
CII RT 182 Tier I
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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

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Tier II
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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)

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Typical Worker Activity
Current
Tier II
50 Direct Work
Direct Work
30 Support Work
Support Work
20 Delays
Delays
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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)

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How to Accomplish?

• Phase in over time
• Pilot projects for Tier I Tier II strategies
• Assessment/monitoring of effectiveness
• Metrics

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A Necessary Element Metrics
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Purpose of Metric

• Measure Effectiveness
• Provide Guidance for Implementation

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Expected Results
Construction Success
0
10
Tier II Project Index (Level of Implementation)
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Tier II Project Index

• Necessary Elements
• Quantification

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Tier II Project Index
Value

• Worker Capabilities
• Technical Skills 2.0
• Management Skills 2.0
• Project Execution
• Information Technology Utilization 2.0
• Craft Utilization 2.0
• Organization 2.0

10.0
Maximum Total
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Tier II Project Index

• Craft Technical Skills Index (Max 2.0)
• Craft Certification
• Technical Experience
• Continuous Training

For key crafts
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Tier II Project Index

• Craft Management Skills Index (Max 2.0)
• Administrative
• Computer
• Planning
• Job Management
• Work Record

For key crafts
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Tier II Project Index

• Information Technology Utilization Index
  
  (Max 2.0)
• Integrated Information Access
• Hardware

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Tier II Project Index

• Craft Utilization Index
  (Max 2.0)
• Crew Mix
• Use of Multiskilled Workers
• Worker Turnover Ratio

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Tier II Project Index

• Organization Index
  (Max 2.0)
• Communications
• High Performance Work Place

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Tier II Project Index
Value

• Worker Capabilities
• Technical Skills 2.0
• Management Skills 2.0
• Project Execution
• Information Technology Utilization 2.0
• Craft Utilization 2.0
• Organization 2.0

10.0
Maximum Total
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Expected Results
Construction Success
0
10
Tier II Project Index (Level of Implementation)
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Work Force Needs
Work Force Needs
Total
Tier I
Unstructured
Tier II
Time
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Implementation Sessions

• Moderator
• Randy Evans, BEK

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Implementation Sessions

• Agenda
• Elaboration of Two-Tier Concept
• Tier II Elements and Metrics
• Example Demonstration
• Participant Input

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Your Duty

• Come to Implementation Session
• Volunteer
• Pilot Projects

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Construction Project Improvement Conference
2001 A Construction OdysseyTrends and
Perspectives
Construction Industry Institute Austin, Texas