Project Manpower Management: Management Processes in Construction Practice

PROJECT MANPOWER MANAGEMENT Project Manpower Management Management Processes in Construction Practice S. D. Anderson ...

Author: Stuart D. Anderson | Ronald W. Woodhead

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PROJECT MANPOWER MANAGEMENT

Project Manpower Management Management Processes in Construction Practice

S. D. Anderson Fluor Engineers and Constructors, Inc.

R. W Woodhead University of New South Wales

A WILEY-INTERSCIENCE PUBLICATION

JOHN WILEY & SONS

New York

Chichester

Brisbane

Toronto

Copyright O 1981 by John Wiley &Sons. Inc. All rights reserved. Published simultaneously in Canada. Reproduction or translation of any part of this work beyond that permitted by Sections 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. Library of Congress Cataloging in Publication Data: Anderson, Stuart D Project manpower management. "A Wiley-Interscience publication." Includes index. 1. Construction industry-Management. 2. Industrial project management. 3. Work groups. I. Woodhead, Ronald W., joint author. 11. Title. HD9715.A2A52 62C.068 ISBN 0-471-95979-0

80-22090

Printed in the United States of America

Preface This book is concerned with the construction industry's approach to project manpower management. The project manpower management area is viewed at two levels: the personal face-to-face management of small work groups such as construction crews; and the impersonal management of groups of people such as the field work force, design groups, and project teams. The book specifically focuses on the management processes associated with the planning, scheduling, enumerating, and performance monitoring of the personal and impersonal aspects of project manpower. The book does not consider in detail the human behavioral aspects of individuals, personal management styles, or the organizational behavior of trade union groups beyond referencing the effect each of these areas has on personal and impersonal manpower management. The book introduces a new approach to the description and understanding of management processes currently found in practice in the construction industry. This new approach is based on a consideration of decision processes in relation to project team organizational structure, management roles, policies, and decision making systems associated with the small, medium-sized, and large construction firms. A basic set of manpower management functions is presented and is used to portray the various decision processes and the roles performed by individual decision makers. In addition, the consideration of the progressive development of the project team organizational structure in response to the increasing management effort in solving the problems raised by the physical separation between the head office and construction site gives an interesting insight into project management concepts. The management function approach together with a focus on decision processes and manager/supervisor roles, as developed in the book, establishes the framework methodology for viewing management in action. This methodology is used to describe four basic manpower management approaches in the project management area of the construction industry. It is further used to gain an understanding of the organizational behavior of the project management team especially in relation to the prevailing construction environment and the modus operandi of the construction company. Finally, the individual role of the manager/supervisor in the management team is established in terms of the management functions he or she performs and the decision processes in which he or she is involved. Thus the approach enables both head office and field management personnel to gain a deep understanding of the modus operandi of manage-

Preface

ment and decision making in construction from the very largest to the smallest of construction firms. A considerable amount of practical information is introduced into the text. This material emerges whenever the methodology is brought to bear on current management practice in construction. Thus the approach developed in the book portrays a variety of management attitudes to project manpower management in terms of operational policies, the range and depth of management functions addressed, and the management roles (job descriptions) played by key decision makers. In this way, the material covered has an appeal to both the professional and the student. The book has been designed to be self-contained. However, the concepts developed have different levels of focus and potential applications for the reader. This approach provides the reader with the option to select those subjects within the text that most closely correspond to his or her interest, background, and professional experience. Thus the book has multiple entry points from which the reader may embark. Although the material can be simply read, it has rigor, and there are chapters and sections of the book that require careful study to gain a full and comprehensive understanding of the concepts and subject matter presented. The reader should carefully peruse and gain a basic understanding of the scope of project manpower management (Chapter 1) and the methodology that is developed to describe project manpower management in construction practice (Chapters 2, 3, and 4). A grasp of these concepts will then assist the reader in selecting the entry point of interest. The multiple entry facet of the book broadens its application and use for both the professional and the student reader. For example, a reader with a professional interest in project management concepts currently employed in construction practice can study the project team structures associated with the small, medium-sized, and large firms (Chapters 5 through 9). If a professional manager is specifically interested in operating policies of construction firms of various modus operandi, he or she should read and study in detail those chapters that expose the management attitudes and policies of various-sized construction firms (Chapters 10 through 14). The book further provides the professional manager with a methodology that can be used to analyze the management roles of decision makers in various construction management environments (Chapters 6 through 9 and Chapter 15). Finally, the construction professional can compare the project management approach of his or her firm with that of another firm by contrasting the project team structures, policies, and decision processes of a firm operating in a different environment (e.g., small firm versus medium-sized firm). While the book presents many management concepts of interest to the experienced professional, it can also be utilized by the student reader as a reference source on project management in construction practice. The book can enhance the student's understanding of management processes in construction, the changing management roles of various decision makers as project size and complexity change, and the different modes of operation of construction firms as characterized by a firm's policies and decision processes.

We would like to thank the many individuals from the construction industry who have contributed to the development of this book and who have provided critical and constructive comment throughout its writing. We specifically thank Dick Foley of Felmley-Dickerson Company, Bill Kuhne of Kuhne-Simmons, Mortan Crane of Crane Construction Company, Inc., Illinois, Bill Petraglia of Proctor and Gamble, Cincinnati, and Robert Nebel of Brown & Root, Houston, for their many helpful suggestions. Finally, we are deeply indebted to E. Caterson, whose dedicated typing of the manuscript and management of correspondence between Australia, South Africa, and the United States made the book a reality.

Huntington Beach, California Kensington, Australia September I980

Contents CHAPTER 1

Project Manpower: A New Approach to a Management Problem

1

1.1 What Is Manpower Management? 1 1.2 Project Management Goals 5 1.3 Molding Pressures in the Project Management Environment 7 1.4 Methodology for Project Manpower Management 8 1.5 Manpower Management Approaches in Practice 10

CHAPTER 2

A Functional Approach to Manpower Management 2.1 General Management Functions 13 2.2 Dissection Framework for Management Functions 14 2.3 The Basic Building Block Functions 20

CHAPTER 3

The Elements of a Decision Process 3.1 3.2 3.3 3.4

CHAPTER 4

The Portrayal of Management Roles 4.1 4.2 4.3 4.4

CHAPTER 5

Management Functions 24 Decision Processes 26 Portrayal of a Decision Process 28 Example of a Decision Process: Estimate Preparation 30

The Management Role of an Individual Manager 38 The Functional Plot 38 Organizational Concepts 40 Portrayal of Project Team Management Roles 47

Project Team Concepts 5.1 5.2 5.3 5.4

Project Team Components 52 The Traveling Project Manager 54 Field Based Project Management 59 Total Field Autonomy 62

37

Contents

CHAPTER 6

The Project Team Structure: The Components 6.1 6.2 6.3 6.4

6.5 CHAPTER 7

7.5

8

8.5

9

9.5

CHAPTER 11

The Construction Environment 141 Organizational Structure: Total Field Autonomy 143 The Project Team: Total Field Autonomy 145 Manpower Management Functions: Total Field Autonomy 151 Management Roles in Manpower Management: Total Field Autonomy 154

Policies: The Portrayal of Management Attitude 10.1 10.2 10.3

110

Thc Large Firm Environment 111 Organizational Structure of the Large Firm 114 The Project Team 121 Manpower Management Functions at the Large Firm Level 127 Management Roles in Manpower Management 130

The Project Team Structure: Total Field Autonomy 9.1 9.2 9.3 9.4

CHAPTER 10

The Medium-Sized Firm Environment 86 Organizational Structure of the Medium-Sized-Firm 90 The Projcct Team 94 Manpower Management Functions at the Medium-Sized Firm Level 9 9 Management Roles in Manpower Management 102

The Project Team Structure: Field Based Project Management 8.1 8.2 8.3 8.4

CHAPTER

The Small Firm Environment 66 Organizational Structure of the Small Firm 69 The Project Team 73 Manpower Management Functions at the Small Firm Level 77 Managemcnt Roles in Manpower Management 80

The Project Team Structure: The Traveling Project Manager 7.1 7.2 7.3 7.4

CHAPTER

65

Policy Formulation 159 The Function-Policy Plot 160 The Portrayal of Policies 163

Management Attitudes: Policies of the Small Firm 11.1 Policies of the Small Firm 166 11.2 Management Attitudes of the Small Firm 167 11.3 Small Firm Policy Plots 169

139

Contents

CHAPTER 1 2

Management Attitudes: Policies of the Medium-Sized Firm 12.1 12.2 12.3

CHAPTER 13

Medium-Sized Firm Policy Plots 180

Management Attitudes: Policies of the Large Firm 13.1 13.2 13.3

CHAPTER 1 4

Policies of the Medium-Sized Firm 173 Management Attitudes of the Medium-Sized Firm 175

Policies of the Large Firm 182 Management Attitudes of the Large Firm 185 Large Firm Policy Plots 189

Management Attitudes: Policies of the Autonomous Project Team 14.1 Policies of the Autonomous Project Team 194 14.2 Management Attitudes of the Autonomous Project Team 198 14.3 Autonomous Project Team Policy Plots 202

CHAPTER 15

Manpower Management Decision Processes 15.1 Manpower Management Decision Processes 207 15.2 The PTC Manpower Management Decision Process 213 15.3 The TPM Manpower Management Decision Process 218 15.4 The Field Based Project Management Decision Process 223 15.5 The Total Field Autonomy Decision Process 229

CHAPTER 16

Project Manpower Management: An Overview 16.1 16.2 16.3

APPENDIX

Changing Management Roles 233 Effective Project Team Management 237 The Portrayal of Management Processes 239

Project Manpower Management Functions A.1 A.2 A.3

Introduction 240 The Management Function 241 Project Manpower Management Functions 241

206

PROJECT MANPOWER MANAGEMENT

CHAPTER

1

Project Manpower: A New Approach to a Management Problem

1.1 WHAT IS MANPOWER MANAGEMENT?

Construction is the creative activity involved in transforming physical resources into a structure conceived as being useful. It is an inherently satisfying activity because people gain satisfaction from the productive application of their skills and efforts. This is especially true of work in the construction environment, where each project is unique, job locations vary so that factory conditions are nonexistent, and each worker, at whatever level, can see the result of personal effort and thereby can identify with the constructive endeavor. The effective and coherent development of any construction effort, however, requires the authority and decisive planning of a management team. Construction objectives are not achieved without directed effort. Field events and construction objectives do not happen by themselves but must be planned and striven for over a considerable period of time. Consequently, the effectiveness of field activity depends upon the skill and effort of the management team in the procurement and use of resources, and in its leadership and motivation of the workforce in the achievement of construction goals and objectives. In construction, as in any other enterprise, people are an indispensable resource. A person is, however, a very complex and often unpredictable being. It is not surprising, then, that management of people consumes a large proportion of the management effort on any construction project. This chapter introduces basic concepts of project manpower management and suggests a framework for viewing the project manpower management approaches that currently exist in the construction industry. The management of people as a human resource ranges over a wide spectrum: from that associated with the management and behavior of an individual, through the establishment and management of temporary work groups (such as crews and design or project team sections), to concern

A New Approach

with the entire project work force and to the relationships that exist and develop between management and organized labor. This wide range of human management concern can be readily divided into four major hierarchical areas: 1. 2. 3. 4.

Human relations Personal management of labor Impersonal management of labor Industrial relations

The hierarchical nature of these four human management areas reflects a progressive growth in the organizational ways in which people are managed while portraying a progressive loss of individual identity. Each of these four human management areas poses unique management problems that affect manpower management. To establish the scope of project manpower management addressed in this book, it is useful to elaborate each human management area in more detail so that a framework of reference can be established.

1. Human Relations. This most fundamental human management area is concerned, first, with those aspects of individual human behavior that relate to personality and skill level and the requirements of the work environment, and second, with the detection and resolution of issues that arise between individuals. At the individual worker level, this management area is concerned initially with the selection and hiring processes and the assessment of an individual's skills, past performance, attitudes toward work, and the manner in which the individual will fit into a close work environment with others. Once hired, management concern additionally focuses on the quality of the work produced and the extent to which the employee can be relied upon to work without constant supervision. At the individual manager level this management area is concerned initially with an assessment of the management potential of the individual, past managerial experience, and leadership qualities. Once established as a member of the management team, concern can be directed to improving the individual's management style so that harmonious and effective relations can develop between the manager and the workers under the manager's control. Finally, at this human management level, management concern should be directed to the improvement of motivational factors that strengthen attitudes toward work and with enhancing worker pride in the quality and performance of the work produced. 2. Personal Management of Labor. This human management area is concerned with the face-to-face contact and management of small work groups. It is here called the personal management of labor because the relevant field managers and supervisors should know the individual members of the work group by name, skill level, and reliability and should strive to develop a close rapport with the group as a whole.

What Is Manpower Management?

At the construction crew level this labor management area is concerned with the performance of all construction work, the attainment of acceptable productivity levels and work quality, and the development of harmonious work relations between the crew members and field supervisors. The critical areas requiring constant attention are the allocation of work assignments among the individual crew members that best matches their skills and level of performance, the development of efficient work patterns, and the consequent proper sizing of crews. 3. Impersonal Management of Labor. This human management area is concerned with the decision processes and management effort associated with the planning, scheduling, enumerating, and performance monitoring of large groups of personnel at the field work force, design group, and project management team levels. It can be considered as an impersonal management effort insofar as the individual identities of members are lost, and to the extent that group totals and overall performance indicators are considered in decision processes. At the field work force level, for example, management concern is directed to determining the labor content of a project, establishing desirable or attainable project manpower profiles, enumerating and scheduling the number of construction crews that will work the project, and the monitoring, recording, and general overall management of the total work force as a whole. 4. Industrial Relations. This human management area is concerned with the contractual and jurisdictional aspects of dealing with trades and organized labor groups, the availability of skilled labor, and the terms under which individuals are hired, paid, and worked. In the majority of construction projects industrial relations guidelines are negotiated and/or established before construction work begins. These guidelines thus become constraints under which all other human management areas operate. At the work force level, management concern focuses on the availability of skilled labor, the size of local labor pools, and the establishment of close relations with key representatives of organized labor groups and local hiring halls. In addition, management effort is directed to the resolution of restrictive work practices and jurisdictional issues that interrupt the otherwise orderly progression of work. At the crew level of labor management, concern is focused on the sizing of crews to meet industrial relations guidelines and on the issuing of work assignments that eliminate or minimize the occurrence of jurisdictional disputes. Each of the four human management areas presented above have been described, at least in broad outline form, in terms of areas of management concern. In addition, each human management area has been focused on representative construction management problems at the workface, crew, and project levels. Using these human management areas and descriptions as a frame of reference, it is possible to focus on a meaningful definition of project manpower management as addressed in this book. The scope of manpower management, as distinct from the manner in

A New Approach

which it is performed and organized, can be outlined in terms of the decision processes it addresses and by the techniques, documents, and information flows used by these decision processes. The project manpower management decision processes considered in this book cover both the personal and impersonal human management areas described above and are affected by both the human relations and industrial relations human management areas. The latter two human management areas will not be considered in this book in any detail beyond identifying ways in which they affect personal or impersonal manpower management. Using this approach, manpower management can be defined in terms of all the decision processes relating to:

1. The determination of the size of the project work force (whether field work force, design group, or field management team). 2. The acquisition of labor and control of the size of the project work force over the life of the project. 3. The structure and breakdown of the project work force into work groups such as crews and management sections. 4. The planning, scheduling, directing, and monitoring of manpower activity. 5. The sizing and composition of specific crews in relation to the work content of project activities and the work assignments to individual crew members. As indicated above, the scope of project manpower management can be presented in terms of the description and structuring of typical management decision processes. Collectively, the description and structuring of typical management decision processes for each of the above management areas, provides an extensive framework for viewing the scope of project manpower management. For such a framework to be useful for the portrayal of management processes, it is necessary to inject a focus on management roles, policies, and the impact of organizational structures on project manpower management processes and styles of management. Thus for example each decision process can be illustrated by describing the manner in which managers implement their decision processes through management techniques that are commonly used in practice. Similarly, a consideration of the organizational and management solutions to problems raised by the separation of project sitc and head office and the portrayal of the management roles adopted by the various project team members broadens the presentation of the manpower management area to the extent that a practical focus emerges. The scope of project manpower management addressed in this book is seen in terms of the management roles of key decision makers, the policies that guide them as they perform decision processes, and the organizational structures and management environment in which they operate. To provide a basis for such a viewpoint, it is necessary to understand the various management goals that relate to the project management area and the

Project Management Goals

1.2 PROJECT MANAGEMENT GOALS

pressures that mold the management environment. Once this is accomplished, a start can be made on the development of a methodological approach to project manpower management. The success of a construction company, as with any company, is measured in terms of the profit it earns. Since construction is project oriented, the ability to generate profit rests with the success of each project management team in its management of the construction project. The primary goal of project management, therefore, is to build an optimum facility with acceptable quality workmanship within a specified time frame and at an allowable cost (results achieved). If this primary goal is achieved, the project management effort will contribute to the profit of the company. At the project team level however project management success is achieved in many complementary ways: by the results achieved; by the quality of work performed; by the ability to anticipate and cope with problems; by the development of a highly coordinated and motivated team; by thc individual's pride and satisfaction in being involved with the project; and by the contribution from the efforts of the management team to the profit of the company. The primary project management goal is achieved through the effective utilization of five resources: machinery, material, manpower, money, and management. The latter resource, management, can be evaluated in terms of its collective skill, know-how, and effort. Of these five resources, manpower is often the most difficult to manage, because people are a complex and volatile resource. Cocsequently, prediction of manpower levels and productivity targets, together with monitoring and measuring work progress, presents a significant challenge to the project management team. In addition, construction and project progress can be achieved only through the attainment of effective man-hour effort and the meeting of scheduled milestone dates. Thus project management achievement depends on the successful obtainment of forecasted productivity and manpower levels. The successful outcome of a project also depends heavily on the skill, efficiency, and effectiveness of the management team; consequently, management know-how becomes a vital resource. This key management resource is often overlooked or taken for granted when assessing the project management team's utilization of the other resources. The ability to manage the five resources has a definite impact on the profit potential of any construction project. In terms of building construction and other types of projects associated with small and medium-sized construction firms, manpower is the only resource that is totally managed in the field. Material and machinery costs are more-or-less fixed on these types of projects, with some savings poqsihle through timely purchases and payments or the effective and efficient use of construction equipment. Cash flow analysis can assist in the attainment of profit by the prevention of liquidity problems and the reduction of interest costs through timely payments. In many cases, the competitive edge in building construction goes to the company that can generate profit through successful manpower management techniques. The labor dollar content of a project in the small to medium-sized firm

A New Approach

construction environment is significant enough that effective manpower management can reduce labor costs and thereby increase profits for the company. Furthermore, the size of thc direct field labor force in this environment is such that reducing crew sizes, even if by one worker, and the cultivating of more productive and motivated crcws through better management will reduce costs, increase profits, and more than compensate for the increased cost of applying improved management techniques. The primary objective remains to maximize profit, and effective manpower management provides a means of achieving this construction management goal. AS the construction environment expands into large firms and multimillion dollar projects, the importance and/or focus of the five resources changes, especially for industrial construction projects such as process or power plants. These projects, for example, normally require significant material control efforts both in the home office and in the field. Although construction manpower is also an important factor in the project management process, manpower is no longer the only field managed resource. Nonetheless, it is still a critical aspect of project management and a resource that can, if managed effectively, provide profit. Although the material and plant machinery cost component is a greater percentage of the total project cost, the labor cost component is still significant, mainly because the total cost of these projects is so high. Thus, substantial labor cost savings are possible through effective manpower management techniques, especially when direct field labor dollars are being expended at a level such as $500,000 or more a day. In the large project environment, predictions of manpower levels and productivities become more critical because of the size of the labor force. The magnitude of the labor force itself raises additional problems, such as keeping track of where people are working and in coordinating work so as to prevent wasted time. These types of problems and the magnitude of the management effort needed to control them inherently causes a significant growth in the size of the project management team. For this reason, management know-how becomes a critical resource, and the managerial skill of the project team members becomes an essential component for successful project management. The engineering, design, and construction project further compounds manpower management because of the large engineering and design task forces required for such projects. In this area of project costs, a considerable number of labor dollars are expended. Thus thc effective management of the management team itself is critical to successfully meeting allowable budgets. While successful management of manpower can lead to labor cost reductions, it also impacts progress, which has a direct influence on meeting specified project time frames or schedule completion dates. Since manpower is a vital aspect of achieving progress and scheduled target dates, predicting manpower levels, productivity, and other factors related to manpower assume greater importance. Meeting scheduled completion dates is just as critical as meeting allowable budgets, because if the facility is not available on time, the client/

Molding Pressures in the Project Management Environment

1.3 MOLDING PRESSURES IN THE PROJECT MANAGEMENT ENVIRONMENT

7

owner could suffer from lost product revenues. As projects grow in size, the revenue value of the facility grows as well. For example, meeting completion dates for large process or power plants could ensure revenue levels such as $1 million a day. At this level, effective manpower management becomes critically important. Effective project manpower management not only produces profit in terms of money, but also enhances company reputation by successfully completing projects on schedule. Therefore, management should be concerned with the project manpower management area as a fruitful area for management effort and should continually seek for better manpower management methods as a means of increasing profit and company business. A variety of management approaches to project management in general, and to project manpower management in particular, exists in practice. These different management approaches portray management solutions to the needs and pressures on project management produced by the construction and management environment of the client, the project, and the contractor. The existence of a variety of management approaches in construction practice is almost self-evident. The fragmentation of the construction industry, together with the large number of construction firms (over 800,000 contracting firms in the United States), ensures that a whole range of expertise, sophistication, and interest exists in the industry. Additionally, in the management area there are often many different ways of achieving the same desired result. However, a number of factors significantly reduce the number of different management approaches that can exist in practice. Examples are the occurrence of similar problems in the various phases of the construction process and the availability and general acceptance of specific management techniques that address these problems. An obvious molding pressure is inherent in the size of the required project work force itself. On the one hand, large projects located on congested sites requiring a large work force and many specialist crews will pose considerable manpower management problems and require and absorb considerable management effort. On the other hand, small, local projects with limited work forces may be worked and personally managed with several small crews only. Thus a wide range of management effort and manpower management focused techniques result from the broad spectrum of project type, size, and manpower management problems that exist on projects. Another significant ingredient molding thc management environment is the manner in which management solves the problems raised by the physical separation of the construction site from the head office. A variety of project management organizations have emerged in practice to address the problem. They reflect different management solutions to the manner in which a project is released to the field and in how field operations are to he managed and controlled. These different management approaches also reflect and embody management's assessment of what is an attainable level of field and project management control. In many cases current management approaches have been strongly

A New Approach

1.4

METHODOLOGY FOR PROJECT MANPOWER MANAGEMENT

molded by historical trends established decades ago and frozen into organizational structures, extant policies, ways of operating, and the views of traditional clients. Often, however, current approaches reflect management's interest in gaining a compctitive lead in the area and recognition by management that only by the constant development and improvement of management techniques will they succeed. Thus an insight into the flexibility of management can be gained by looking at the range of different project team structures that emerge within a construction company. The management experience and sophistication of the client can have a tremendous impact on the management approach of a contractor. If the client has extensive management experience, he may well demand an increased level of expertise and management effort from the contractor and in some cases insist on the continuous monitoring of, and even involvement in, the project management process. Thus the management focus of the client and the resultant need to supply extensive, detailed, and specific management reports often forces the contractor into the development of more sophisticated project management methods. Some contractors actively pursue the improvement of their professional management approach to project management as a means of gaining prestige and a continuation of projects. They strive to gain a reputation for finishing projects on time and within allowable costs while maximizing earned profit. These contractors are always seeking to establish better decision processes and management techniques. Their professional efforts ensure a wide range of sophistication in management approaches. As indicated above, a variety of molding pressures contribute toward the management environment surrounding a particular project. Some pressures are more important on a particular project than others; some have a direct impact on the management approach to a project while others have a less obvious influence. T o some extent they all affect the roles of individual manager/supervisors and the way in which overall project management goals are achieved. A consideration of management molding pressures is therefore essential to a full understanding of the specific management approach adopted by the contractor for each construction project. The following section introduces a methodological approach to project manpower management that establishes a framework within which the influence of these molding pressures can be considered. This section outlines a way of looking at, and describing, project manpower management. The manner in which this is done establishes a methodological approach to management processes in general. The elements of the proposed methodology are developed in the next three chapters and the methodology is illustrated in the remainder of this book when attention is focused on the various management approaches to project manpower management that exist in current practice. In developing such a methodology, there is a need:

1. To define and describe the functions that project manpower managers must perform.

Methodology for Project Manpower Management

2.

3.

9

To identify and structure the decision processes involved in project manpower management. To portray the different roles that managers and supervisors adopt in the making of decisions and in their implementation.

The methodology is built around a functional approach to the description of the scope of project manpower management and the manner in which management operates. A fundamental ingredient in this approach is the concept of a management function as a duty or task that has to be performed. A management function is both a responsibility of management and a request for performance. The management function is therefore a useful way of describing management in action. The success of the functional approach depends upon the effectiveness with which management functions are formulated and defined. A properly titled and focused management function can be both specific and generic. It is specific if the title leaves no doubt as to the scope and focus of the managcrnent effort required in its performance. I t is generic insofar as the function can be performed in a variety of ways, using management techniques of differing sophistication. The management function approach is also useful because it provides a common reference point for the description of both decision processes and the role of decision makers and supervisors in manpower management. The development of a comprehensive basic set of management functions suitable for the description of the project manpower management area is given in Chapter 2 . The next step in the methodological formulation of the project manpower management area is to describe the professional management of the area in terms of the types of problems to be considered and the decision processes that address these problems. In this way professional management is seen as the addressing and performance of a structured set of independent, or possibly interacting, decision processes. Each decision process can be formulated in terms of the management functions that need to be performed during the execution of the decision. These component management functions generate, manipulate, and present data and information relevant to the decision. Thus generic and stmctured functional formulations can be developed for each decision process. Each decision process can be formulated as a specific management information system by the introduction of document and information Bows and the enumeration of policies. In this way once specific management techniques and documents are prescribed for the manner in which each decision component function is to be performed, each decision process takes on the character of a completely defined and problem focused information system. The manner in which decision processes are structured as problem focused management information systems is presented in Chapter 3. The third and final stage in the methodological formulation of the project manpower management area is to describe the role of each manager or supervisor in each decision process in which he is involved. In this way,

A New Approach

the roles of individuals, and groups of individuals, in an organization can be established. In general, more than one person is involved in a decision process. Some gather data, others process data using specific techniques and documents, and still others may formulate constraining policies or make the final decision statement. The manner in which these people are involved in a decision process can be portrayed in terms of the functions in which they are involved and the manner in which they contribute to the performance of each management function. In this way the dynamic nature of personal involvement in each decision process, as well as in the organization as a whole, can be captured. The dynamic organizational structure that results for each decision process and for the project manpower management area as a whole need not, and often does not, correspond to the formal organizational structure of the construction company, project team, or the hierarchical location of the personnel involved. The manner in which the role of individual managers can be portrayed, and basic organizational concepts, are introduced in Chapter 4. The major portion of this book is directed to the description and illustration of typical manpower management approaches that exist in practice. Each manpower management approach is described in terms of: -

1.5 MANPOWER MANAGEMENT APPROACHES IN PRACTICE

~

1. The construction environment in which it emerges. The construction environment is seen as molding the general organizational structure of the contracting firm most commonly using the specific manpower management approach under consideration. 2. The organizational structure and character of the project team that emerges as a management solution to the separation problems of head office and field site management. 3. The range and scope of manpower management functions addressed. 4. The range and scope of manpower management decision processes addressed by the management approach and the policies under which those decisions are made. In this way typical management attitudes are illustrated in specific and quantifiable ways. 5. The different manager/supervisor roles that emerge for each management approach. The construction environment has been conveniently divided and related to those firms that produce construction companies at the typical small, medium-sized, and large firm levels. This convenient division also corresponds roughly to the growth in magnitude of both construction project size and complexity and the magnitude of the inherent manpower management problems. A developmental framework for the project team structure as management solutions of increasing focus and intent in project management is presented in Chapter 5. This staged development of the project team structure is used to illustrate the construction environment, organizational

Manpower Management Approaches in Practice

11

structure, manpower functions performed, and manager/supervisor roles for the small firm, project team components (Chapter 6 ) ; medium-sized firm, the traveling project manager (Chapter 7) ; and large firm, field based project management and total field autonomy (Chapters 8 and 9), respectively. This developmental concept of the project team strncture is readily related to an increasing sophistication in the management approach to project manpower management. The use of policies as a means of portraying management attitude is presented in Chapter 10 and illustrated with reference to the small firm (Chapter l l ) , medium-sized firm (Chapter 12), the field based project management approach of the large firm (Chapter 13), and the total field autonomy approach (Chapter 14). The identification and description of manpower management decision processes is presented in Chapter 15 and illustrated with reference to the functions performed and manager/supe~isor roles at the various firm levels in the later sections of that chapter. Finally, Chapter 16 presents an overview of the methodological approach to project manpower management developed in this book and relates the various manpower management approaches to the growth of specialist professional areas in project management and the benefits to be gained through the identification and adoption by management of the management approach most suited to the construction environment in which they operate.

CHAPTER

2

A Functional Approach to Manpower Management

Management manages people and resources through people and is consequently dominantly influenced by people. Management effort is especially influenced by the expertise and attitudes of the managers themselves. Thus the manner in which management performs its duties reveals the personal characteristic imprint of the management team itself while establishing its modus operandi. A considerable understanding of management's role in a project, its perception of attainable levels of resource management, and its attitude to labor can be gained from a study of its decision processes, policies, and the manner in which routine processes are performed. While most management effort is directed to performing routine processes, their continued use reveals management's implied consent and identification with the attitudes, standards, policies, and documents embodied in these formalized procedures. When facing new, or significant, problems, management must initiate and perform the relevant decision processes in arriving at and implementing a management decision. Thus at every step in the management process management attitudes, expertise, and procedures reveal the management approach of the project management team. This chapter is concerned with the identification and structuring of a basic set of project manpower management functions. These functions are obtained from a dissection of those general project management functions found relevant to the management of any project. In this way forty-six basic project manpower management functions are established. Each basic management function is described in terms of a precise functional scope statement and a statement of the background qualification and knowledge that the person performing the function must have in order to be competent enough to be entrusted with the performance of the function. Finally, each basic manpower management function is described in terms of the factors that must be considered during the performance of the function. Thus while each management function is described in a very

General Management

h I

I

:

unctions

2.1 GE ERAL MANAG MENT FUNCTIONS

13

detailed manner, each can be performed in a variety of ways that reflect the level of management sophistication that is available or thought requisite for their performance. Traditionally, management tasks have been divided into the broad functional areas of organizing, staffing, planning, directing, and controlling. These management functions are necessary for the management of any project and are referred to in this text as general management functions. This traditional broad dissection and sequencing of management functions corresponds naturally to project management requirements. Thus once management has been empowered to act, its initial efforts must be directed to organizing itself, deciding upon its scope of action, and formulating the policies under which it will act. When this has been accomplished, project management effort can be directed toward the completion of the project. The general management functions can therefore be broadly divided into two groups. The first group, organizing and staffing, is associated with establishing the project team, and the second group, planning, directing, monitoring and controlling, is associated with the activity of managing the project (i.e., project management). Figure 2.1 indicates schematically the relationship between these management functions and their functional groupings. The second group of general management functions (planning, directing, monitoring, and controlling) associated with project management are performed by the project team within the organizational structure adopted for the project.* The particular breakdown of these functions depends upon the nature of the project. That shown in Figure 2.2 dissects planning

ESTABLISHING THE PROJECT TEAM

ORGANIZE TEAM STRUCTURE: TEAM DEFINITION N U M B E R O F PROJECT TEAM M E M B E R S LINES OF COMMUNICATION JOB DESCRIPTION STAFF THE ORGANIZATIONAL STRUCTURE. TEAM DEVELOPMENT

MANAGING

T H E PROJECT

'

PROJECT MANAGEN IENT CONTROL

PoLlclEs S TR A TE G IE S

n WORK J~IRECTIVES

CONSTRAINTS

EFFORT

INFORMATION A N D D O C U ME N T nIY .F I--..

6

I

II I1

MONITOR EFFORT

Figure 2.1 Relationship between general management functions,

* For our purposes the second group of general management functions are of paramount interest in developing a basic structure for manpower oriented management functions. Accordingly, the consideration of the development and staffing aspects of a project management organization is deferred until Chapter 4.

.5

; i

,

.d,.

\*

y%h?r ',

4

PLAN

WORK

WHAT IS TO

WHEN WILL ACTION TO PLAN AND COMMIT HOW, AND IN RESOURCES RESOURCES WHAT O R D E R BE COMMITTED

BE DONE,

Figure 2.2

2.2 DISSECTION FRAMEWORK FOR MANAGEMENT FUNCTIONS

-.

& d

b

7

.$.

nctional Approach

MONITOR

WORK EFFORT WHAT IS CONSUMING BEING DONE RESOURCES BY WHOM

RECORD WHAT HAS B E E N DONE

General project management functions.

into two components, one of which is associated with planning what to do, the other with scheduling when to do it. Similarly, directing is dissected into the active allocation of staff and labor resources to a job and the subsequent directing of them in their work task activities. Finally, the control function has been associated with decision making based upon information gathered in the monitoring and recording of current project status and work progress, and with the consequential impact of decision making on the planning, scheduling, allocation, and work functions of the project effort. The six general project management functions (planning, scheduling, allocating, working, monitoring, and recording) introduced above are usually found relevant to any management undertaking. In construction management, especially for project management at the contractor level, these general project management functions demand considerable attention and account for most of the management effort expended on a project. The extent to which they must be considered and performed will depend on the nature of the management tasks involved and will correspondingly affect the organizational form and breakdown adopted for the management assignment. If the management requirements and work load focus in one or more of these functions are considerable, the typical management solution is to dissect each general project management function into a number of specialist functional areas that reflect the needs of the project and the expertise of the available project team members. In these cases the general project management functions can form the basis for a functional dissection of the management effort. Accordingly, considerable insight into contractor and project management organizations, project management decision processes, and job descriptions and managedsupervisor roles can be gained by viewing construction management from the general project management function point of view. T o achieve this objective, it is necessary to consider the dissection of the general management functions into those specialized component functions that are considered to best describe the modus operandi of the management effort under consideration. The six general project management functions (planning, scheduling, allocating, working, monitoring, and recording) show a progressive movement of management concern from the planning and enumeration of required resources to the commitment, use, and evaluation of the effective use of these -project resources. Fortuitously, the natural sequence of these functions corresponds to the general movement and relocation of management concern and effort from the head office environment (concerned with -

Dissection Framework for Management Fundions

15

planning and scheduling) to the field for work execution and then back to the head office environment (for final resource use assessment and related decision management efforts). This sequence of the general project management functions therefore provides an ideal dissection rationale for both resource use management and construction management purposes. Using these six general management functions as a frame of reference, further dissection can be made in a number of ways. It can reflect, for example, the decision hierarchy of the project team member involved, a focus on the different stages involved in the management process for individual resources (labor, material, equipment, finance, etc.), a specific decision process (say, bidding) associated with project management, the interaction of the project team members in each phase of project management, or the nature of information flow requirements for each decision process. Whatever dissection rationale is used, the result will be a twodimensional set of special purpose functions (grouped in one direction by the general project management functional areas, and in the other direction according to the chosen dissection rationale). Consider, for example, a dissection rationale for each general project management function based upon various management interests, spanning the construction hierarchy from the foreman (with a crew and workface focus on construction management) through the project management staff to a top-level executive manager (with a project staffing and overall project management concern focus). Such an overall approach may be found useful for locating, identifying, and sequencing the interaction and specific management roles of the personnel involved in project management. This dissection rationale exposes the different levels of management problems that each decision maker encounters. For instance, the superintendent/foreman is interested in crew sizing and in allocating a crew to an activity, whereas the project manager may be interested only in total project manpower over the duration of the project. At the field and workface levels in the management hierarchy the management functions would be dominantly personal management oriented (see Section 1 . 1 ) , whereas at the project management and top management levels the functions will be more impersonal management oriented (see Section 1 . 1 ) . Generally also at the project management level (depending upon the size of the project and management attitudes) there would be areas of overlap where some manpower management f~lnctions would have both a personal and impersonal management focus. A schematic layout of the dissection of general project management functions based on managerial hierarchy is shown in Figure 2.3. The personal and impersonal management of labor covers a broad spectrum of management functions over the managerial hierarchy. Consequently, each general project management function can be dissected into areas of focus up the managerial hierarchy. For example, dissection of the planning and scheduling functions could be focused on the decision processes, which span labor planning and scheduling problems at the workface and crew levels to project focused staff planning, estimating, and schedul-

A Functional Approach THE MANAGEMENT PROCESS G E N E R A L PROJECT M A N A G E M E N T FUNCTIONS PLAN-

SCHEDULE

>

+ ALLOCATE + W O R K + M O N l T O R + R E C O R D

Figure 2.3 Two-dimensional reference framework for the general project management functions.

ing problems at the head office level. Similarly, dissection of the allocation and work functions would have a labor involvement and action focus, which at the workface level is involved with the formation of crews and the assignment of work tasks to individual crew members, whereas further up the management hierarchy the functions would have an overall workforce management concern. Finally, dissection of the monitoring and recording functions would focus on the effectiveness of manpower involvement in the project, which at the workface level would involve site inspec-

THE MANAGEMENT PROCESS

G E N E R A L PROJECT MANAGEMENT FUNCTIONS

>

TOP MANAGEMENT I b

0 4

PROJECT MANAGEMENT STAFF

z Q

I u

CREW A N D WORKFACE MANAGERS

AND SUPERVISORS

Figure 2.4 Two-dimensional reference framework for project manpower management functions.

THE MANAGEMENT PROCESS GENERAL PROJECT MANAGEMENT FUNCTIONS PLAN

I

SCHEDULE

ESTIMATOR (Company Executive1

PROJECT MANAGER (Company Executive)

SUPERINTENDENT FOREMAN

c

PROJECT TEAM MEMBERS

Figure 2.5 The range and focus of project team member involvement in manpower management. (a) Small project. ( b ) Large project.

ALLOCATE

WORK

MONITOR

3 RECORD

THE MANAGEMENT PROCESS GENERAL PROJECT MANAGEMENT FUNCTIONS PLAN

EXEC. PROJ. MGR

COST ACCT.

SCHEDULE

ALLOCATE

ESTIMA T 0R

PROJ. MGR

FIELD ENGR

cds~ SCHED ENGR

GEN'L SUPER ASST. SUPERS

I FOREMAN

<

PROJECT TEAM MEMBERS

fb)

Figure 2.5

(continued)

WORK

MONITOR

3 RECORD

PLAN

SCHEDULE

ALLOCATE

WORK

Figure 2.6 Project manpower management functions.

MONITOR

RECORD

A Functional Approach

2.3 THE BASIC BUILDING BLOCK FUNCTIONS

tions and the use of time cards, whereas at the top management level the relevant functions would focus on project summary and progress evaluation problems. Using this approach, the two-dimensional reference framework of Figure 2.3 can be extended as shown in Figure 2.4 and used for the development of the basic project manpower management functions. As a further illustration, the managerial hierarchy for a small project and a large project in terms of project team members and the relative range and focus of their manpower management involvement is schematically portrayed in Figure 2 . 5 and ~ h, respectively, using the reference framework of Figure 2.4. Using the two-dimensional reference framework of the management process functions and the management interests of staff in the construction management hierarchy (as shown in Figure 2.4), forty-six project manpower management functions are identified and described as shown in Figure 2.6. The forty-six management functions are not unique. They have been derived from a special selection and ordering of the general project management functions thought relevant to ongoing project management. Each of these specifically focused general management functions has been dissected, more or less arbitrarily, into six or eight individual management functions, so that each reference segment in the two-dimensional framework of Figure 2.6 has between four and seven basic management functions. As mentioned previously, the dissection rationale for each general project management function is based upon various managemcnt interests, spanning the construction hierarchy from the foreman to the top-level executive manager. Although the specific hierarchical ranking of these managers and supervisors is fairly simple, the correct focus on an optimal level of detail for each, as evidenced by the identification and inclusion of a number of pertinent management functions, is not easy and is automatically subjective. More individually focused functions or fewer functions could have been formulated for each typical position. The forty-six individual functions represent, in our view, a balance between, on the one hand, the need for an adequate description of the various decision processes involved in construction management and the roles that individual decision makers play in these decision processes and, on the other hand, the problems associated with the codification and understanding of a larger number of specialized management functions obtained from too fine a dissection of each general project manpower management function. The latter difficulty is partly overcome in the text discussions by awakening in the reader the understanding that the way each management function is recognized and handled depends upon management attitudes or the professional expertise of individual managers. In some management situations certain functions may either be ignored or handled in an ad hoc manner by general purpose construction personnel, whereas in other organizations they may be handled explicitly and systematically by specialists in a management environment that needs action in detail on these functions. Thus each individual management

SCHEDULE S

PLAN P

ALLOCATE A

RECORD R

P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF

W1 RELEASE STAFF TO PROJECT

M1 SUMMARY PROJECT REPORTS

R1 HISTORICAL DATA BASE

2

P2 ACTIVITY DEFINlTION

S2 ESTABLISH CONSTRUCTION SCHEDULE

A2 ALLOCATE FIELD STAFF

W2 PRE-JOB LABOR CONFERENCE

M2 CURRENT PROJECT STATUS

R2 GENERATE LABOR MANAGE MENT DATA

3

P3 QUANTITY TAKE-OFF

S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

R3 PROJECT COST ACCOUNTING

S4 DEVELOP WORK PACKAGE DETAILED LOGIC

A4 DETERMINE NUMBBR OF FIELD CREWS

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS

M4 ACTIVITY ANALYSIS

R4 UPDATE AND REVISE WORK PACKAGE SCOPE

ST

A5. ADJUST CREWS

W5 ESTABLISH FIELD CREWS

M5 LABOR ANALYSIS

R5 LABOR PRODUCTIVITY

A6 ASSIGN INDIVIDUAL WORK TASKS

W6 SOLVE HUMAN RELATIONS PROBLEMS

M6 WORK PROGRESS

R6 QUANTITIES IN PLACE

5

P5 DEFINE WORK PACKAGE

DEFINE CURRENT PROJECT STATUS

6

P6 DETAILED FIELD QUANTITY TAKEOFF

S6 REVISE CONSTRUCTION SCHEDULE

7

P7 ESTABLISH CREW REQUIREMENTS

S7 SCHEDULE PROJECT CREWS

W7 INITIATE INDIVIDUAL WORK TASKS

M7 RESOURCE USE

R7 LABOR HOURS

8

P8 PLAN WORKFACE LAYOUT

S8 SCHEDULE CREW MEMBER WORK SEQUENCES

W8 EXECUTE WORK

M8 FIELD INSPECTION

RS FIELD AUTHORITY DOCKETS

Figure 2.7 L

MONITOR M

1

4 P4 ESTIMATE LABOR CONTENT '

N

WORK W

Basic project manpower management functions.

A Functional Approach

function should be examined for its relevance to project problems and the modus operandi of the management group. The forty-six basic project manpower mangement functions are collected together in Figure 2.7 and identified by an alphanumeric label. Thus the CONSTRUCTION RECONNAISSANCE management function is labeled P1 because it is the first of the planning functions. Similarly, function A4 is concerned with the DETERMINATION O F T H E NUMBER O F FIELD CREWS.* Each individual basic management function can be further described by a function scope statement, a job description statement relevant to the performance of the function, and a statement of factors that may be considered relevant to the performance of the function. Figure 2.8, for example, gives such a description of the CONSTRUCTION RECONNAISSANCE management function. Function descriptions similar to that for the CONSTRUCTION RECONNAISSANCE (PI ) management function are collected together in the Appendix. When analyzing the function descriptions in the Appendix, the scope, qualifications, and factors relevant to function performance will be viewed differently depending on management philosophies, techniques, skill levels, and attitudes. In his project management approach one manager may consider only some of the factors relevant to his problem, whereas another manager will consider the broad spectrum of factors embraced in a function description. The depth and detail in which each function is performed will vary in construction practice. As an example, a contractor on a small construction project performs only those aspects of the CONSTRUCTION RECONNAISSANCE (PI) function that focus on the analysis of site conditions to determine their impact on construction methods, cost estimates, and schedules. Analysis of local labor availability, labor productivities, work practices, and so on, are obviated, because the contractor operates in a limited work region in which he has complete knowledge and familiarity with all aspects of the local labor environment. Conversely, a contractor whose project locations are often in remote geographical areas will analyze site conditions and also investigate local labor availability, productivities, and restrictive work practices. In some cases, the required project labor force is often so large that the local labor pool cannot sustain the project and labor must be recruited. Only through a detailed survey of the local labor environment can this be ascertained. Finally, the management techniques used in performing a function vary from the ad hoc "seat of the pants" approach to a detailed analysis based on predetermined management techniques. One contractor may start a -

*Notice that whenever specific mention is made in the text to one of the specific basic management functions listed in Figure 2.7, the function name is capitalized. Notice further that the function names are often slightly altered to ensure integration of the function name with the context of the textual sentence in which it appears. In this case function A4 is labeled DETERMINE NUMBER OF FIELD CREWS hut is referenced above as the DETERMINATION OF THE NUMBER OF FIELD CREWS, because this descriptive title is more relevant to the sentence structure.

The Basic Building Block Fuuctious FUNCTION IDENTIFICATION LABEL FUNCTION DESCRIPTION

J

/FUNCTION SCOPE STATEMENT QUALIFICATIONS REQUIRED FOR FUNCTION PERFORMANCE

FACTORS RELEVANT TO FUNCTION PERFORMANCE

i

d i

J -

FUNCTION NAME

CONSTRUCTION RECONNAISSANCE

The assessment of project site conditions and local factors that may impact the project and which must be considered during project planning and management. Requires knowledge of project scope and specifications, construction methods, labor organizations and trade classifications, subcontractor requirements, and site inspection with checkout list for factors and facilities influencing site accessibility, mobilization, layout, and productivity.

i

t

Considers availability of labor, location of union locals, union agreements and expiration dates, local measures of productivity, restrictive work practices, local trade skill levels, attitudes to importation of labor, trainirig mechanisms, subwntractor availability, and impact of site conditions on construction methods and working conditions.

Figure 2.8 A management function (see the Appendix for the complete set of management function descriptions).

project and indicate the completion date without a formal schedule, whereas another contractor may formalize detailed activity bar charts and construction logic networks to determine how he can meet a specified completion date. Both management approaches may, however, be equally effective in the relevant management and project environments in which they are performed. Collectively, the forty-six basic management functions in Figure 2.7 present a comprehensive description of project manpower management, and can be used, as shown later, to describe the various management processes relevant to project manpower management.

CHAPTER

3

The Elements of a Decision Process

3.1 MANAGEMENT FUNCTIONS

The mode of operation of a construction company can be described by the way it addresses, evaluates, and implements major decisions relating to policies and its portfolio of projects. Each major decision process requires the performance, under guiding policies, of a number of management functions. Thus a decision process can be described and modeled by identifying the various management functions involved, by establishing their structured and interacting sequence of performance and then by focusing on the policies, documents, and data involved in the performance of these functions. This chapter develops a method of structuring and describing decision processes. T o accomplish this objective, the manner in which a management function may be performed is cxamined and used to illustrate the basic elements of a decision process. The structure of a decision process is established and a simple graphical technique is presented which enables the decision process to be portrayed and documented. The method is illustrated with reference to the estimate preparation decision process at the small firm level. Management functions can be defined and described in a variety of ways. In some cases a descriptive title and a written description of the scope of the function may be sufficient. A more detailed method would be to reference the documents and procedures used in the performance of the function, and by the preparation of procedural performance manuals for major or critical functions. The approach adopted will depend upon the magnitude and importance of the function, the expertise and experience of the employee involved, and the level of sophistication required by management in the performance of the function. The manner in which an employee performs a specific function will depend upon factors relating to his understanding, the information and time available, and the existence of formalized procedures and policies that bear on its performance. Established procedures are normally accompanied by one or more documents which are completed as a consequence of executing the function. An example of a typical function requiring a standard

Management Functions

document is QUANTITY TAKE-OFF, in which quantities and supporting calculations are written m t o a standard company form. In many management situations, however, no formal procedures exist and the function is performed in an ad hoc manner. The management approach of the employee then establishes how the function is performed. In most cases the basic elements of performing a management function are the same regardless of whether the approach is ad hoc or formalized. In addition, these elementary steps have a close correlation with information processing concepts. For instance, the employee must collect and process data. The resulting information often needs to be highlighted and manipulated into a form that can be readily absorbed by others. Finally, steps may be required in order to relay the final information to other personnel so that further management functions may be performed. When collecting data the employee must determine what data are required and from what sources the data can be gathered. Similarly, the employee must determine how the data should be processed and how the final information should be presented. Finally, he must consider who requires the information and when and how the information should be transmitted. Whether the employee carries out the function formally or in his head, he is involved in a data-to-information processing effort. Thus management functions can be thought of as information flow processes. In many cases, of course, the information flow is by word of mouth, observation, or via the handling of documents, and decisions are made based upon past experience. However, for some functions, management performance can be directly correlated with the various steps involved in using information processing systems (whether automated or not). As an illustrative example, consider the planning and management processes associated with WORKFACE LAYOUT PLANNING (the P8 project manpower management function). This function is best performed prior to the mobilizing of a crew at the workface, but in practice it is often performed when the foremen and crew first arrive at the workface. It is concerned with the specific details of establishing material supply to the workface, including, for example, hoist priorities if this is appropriate to the operation, the location of material dumps to best support workface activity, and the initial locating of the crew at their workface stations together with prescribing the order of the work flow around the workface. The general description of this manpower management function as extracted from the Appendix is given in Figure 3.1. The management process required for performing workface layout planning in terms of the four basic functional performance elements vis (collecting information, information processing, initiate action, and relaying action information), is depicted in Figure 3.2. The description is developed for the general case by considering the various observations, thought processes, management techniques, and decision processes that may be considered relevent. Not all of the steps illustrated will be followed or will be relevant to every specific situation. Accordingly, it must be appreciated that many

Decision Process Elements

P8

PLAN WORKFACE LAYOUT Locates men, equipment, tool boxes, material dumps, and supply routes to workface to best advantage. Requires intimate knowledge of workface area, working conditions, equipment availability, and job requirements. Considers workface maneuvers over life of work activity and the location and interaclion of the pacing and support trades. Minimizes work effort by elimination of needless walking and secondary movement of materials.

Figure 3.1

3.2 DECISION PROCESSES

Basic workface layout planning function.

variations exist in practice. In some cases, for example, the function may be efficiently performed solely on visual inspection and on the basis of past experience. Nevertheless, an attempt is made in Figure 3.2 to expose the basic rationale for the performance of the function.* Thus the performance of a function (Figure 3.2) is a composite of many minor decision processes. Since all functions are basically like this, it then becomes relevant to view management functions in relation to the decision making process. Managers are always making decisions. Some decisions are easily made, especially if the manager can equate the decision problem to an appropriate policy or to a previous situation in which he was involved. Some decision processes, however, can be made only after careful consideration and discussions with key personnel and based upon the acquisition of relevant project data and the study of the possible implications of a decision to both project and company operations. In these latter situations decision making requires the prior completion of a number of management functions. Thus management functions, when given a problem focus, become components of the decision process. A decision process can therefore be defined in terms of the specific management functions that need to be performed during the decisionmaking process. Many of these component management functions will be performed sequentially in the decision process, whereas others will interact with each other so that in some cases the iterative or repeated performance of management functions will become necessary. Hence the structured relationships between the component management functions must be established in the description or definition of the decision process. Given the sequence of performance of the component functions, together with the data, documents, and policies required by each component function, a complete information system description of the decision process can be established. Generally speaking, the policies and documents that guide the performance of each function and the decision process as a whole will be unique to the company, so that it is possible to describe how a speciiic company solves a particular problem. In addition, if management roles are identified with and incorporated into a statement or description of a de* A consideration of the relevant techniques and different approaches to the performance of this and the other functions is left to the companion volume in this series.

PLAN WORKFACE LAYOUT (P8) DATA COLLECTION FROM WORK PACKAGE DEFINITION (P5), DETAILED FIELD QUANTITY TAKEOFF (P6), AND ESTABLISHING CREW REQUIREMENTS (P7) 1. Collect job requirements, scope, and locations 2. Remember visual inspections and past experience 3. Review selected construction method and equipment 4. Collect material and quantity requirements 5. Review equipment and material availability 6. Review established crew sizes and mixes, production rates, durations FROM ENFORCE JURISDICTIONAL WORK ASSIGNMENTS (W4) 1. ' Review required jurisdictional assignments FROM FIELD INSPECTION (M8) 1. Remember current crew congestion and current volume of activity in work area

DATA PROCESSING 1. 2.

3. 4. 5. 6.

7. 8.

9. 10.

Check general activity work location accessibility Locate equipment positions Locate material dumps and routes to work location Determine number of workstations Determine preferred starting points Sequence movement between workstations Determine adequate material flow to workface Check crew mix and size-is it adequate? Check workspace available per tradesman Determine jurisdictional issues for work tasks

AFFIRMATIVE ACTION 1.

Identify material dumps and routes, equipment location, order of work, workstation locations 2. Advise crew members of assignments

Verbal instructions to crew members via INITIATING WORK TASKS (W7)

3. Memorize material dumps and routes, equipment locations, order of work, workstation locations 4. Request material routes and dumps, equipment locations 5. Advise crew members of assignments

Verbal or documented via DEFINE WORK PACKAGE (P5) or unique document to INITIATE WORK TASKS (W7) Verbal instructions to crew members via INITIATE WORK TASKS (W7)

6. Sketch or formal drawing of material dumps and routes, equipment locations, order of work, workstation locations 7. Request material routes, etc. 8. Advise crew members of assignments

Documented by work order to WORK PACKAGE DEFINITION (PSI Crew members given instrnctions with documents (to INITIATE WORK TASKS W7)

9.

Fignre 3.2

INFORMATION TRANSMITTAL

Propose new crew size and mix, construction method (previous approach unacceptable)

A management function process model.

Reevaluate work package and reestablish crew requirements via WORK PACKAGE DEFINITION (P5), and ESTABLISHING CREW REQUIREMENTS (P7)

Decision Process Elements

3.3 A

OF

cision process, the management approach of specific groups to solving decision problems can be revealed and examined. By analyzing the various decision processes associated with a particular aspect of the project management process, such as manpower management, the company's mode of operation can be described. Thus the focus on the decision process as a dynamic information system becomes a tool that can expose the policies under which decisions are made and can document management roles. The entire mode of operation of a company can therefore be addressed through a consideration of its decision processes. A collection of basic decision processes that can be used to describe the mode of operation of a construction company in the project manpower management area is introduced in Chapter 15 and used to indicate the various management approaches that exist in construction practice. A simple graphical technique for the portrayal of decision processes is introduced in the next section. A schematic illustration of a decision process must incorporate symbols that represent information flows, such as the generation and transmittal of data on documents and the impact of policy directives and the like on the performance of the component management functions. This requirement can be accomplished through a simple network technique which uses flowchart symbols to represent functions, policies, documents, and information flow. The technique used in this book for portraying a decision process is shown in Figure 3.3, in terms of the elements involved in the performance of a management function. In Figure 3.34 F1 represents the function to be performed and a circle is used to symbolize the requirement (the action) to perform the function. The line symbol entering at the top of the function circle in Figure 3.3b represents data from another source, such as information relative to site conditions. This type of information input can either be verbally transmitted by direct contact between employees or in the form of a written document. In the former case, the flow line would simply represent verbal information transfer. If the information is transferred on a document, a third symbol (flowchart symbol for documents) is used, as shown in Figure 3.3c, and a flow line becomes a documented information transfer. As shown in Figure 3.3c, there are three types of documents that could emerge in performing a management function. These are: (1) policy document (P-Doc), (2) internally generated document (I-Doc), and (3) external document (E-Doc) . A policy document (P-Doc) is a direct expression of a policy statement. It may take the form of a specially printed form, or it may be a specially prepared reference list. A form for calculating and summarizing quantities is an example of a policy document. Many companies utilize a company standard cost coding system manual. This manual serves as a reference list for generating a cost code system designed specifically for a project, in which case the cost code reference list would be a policy document. An internal document (I-Doc) contains the output of a function and may or may not be a derivative of a policy document. The project cost code system developed from a company standard cost code manual (policy

INFORMATION TRANSFER (VERBAL) DOCUMENTED INTERNAL DOC. (written)

PERFORM

w Use of the circle symbol t o portray the performance of a function

Use of the line symbol to portray information flow to a function

Use of the chart symbol to portray a document

STATEPERFORM

PERFORM F1

(information transfer)

( I/--

POLICY DOCUMENT

INFORMATION TRANSFER (verbal or documented) Use of the line symbol t o portray information flow leaving a function

I

Use of the rectangular symbol to portray a policy statement and of the dashed l ~ n eto portray the information transfer of guideline information or of a standard policy document at the performance o f the function fe)

Figure 3.3 Elements of the network technique used to describe a management Iunction information system.

Decision Process Elements

document) would be considered an internal document and a derivative of a policy document. Another example of an internal document is the formulation and graphic display of a bar chart schedule. The internal document would result from a scheduling function for which a policy statement would direct only the use of the bar chart method. In many management situations, a standard form is not available, and therefore the document is generated internally by the person performing the function. The external document (E-Doc) is a document that enters the decision process from sources other than from within the company. Drawings and specifications could be considered an external document when provided by an architect/engineer who is divorced from the contractor. A union agreement is a second illustration of an external document. All documents enter a management function on flow lines, as information input, and after processing are forwarded to subsequent functions as information input for those functions. The flow line leaving the bottom of the function circle in Figure 3.3d represents this transfer of information. Again, this could be in the form of j i r b a l data and instructions or a document, in which case the existing line is further elaborated to show the ~ an enterchart symbol in a similar mannerto that shown in Figure 3 . 3 for ing document. The performance of a function is often further influenced by a policy either in the form of a suggested guideline or a directed method for performing a function. The policy statement is identified by a rectangle symbol as shown in Figure 3.3e. The dashed line that flows from the policy statement to the function in Figure 3.3e represents information transfer regarding the policy statement, which is in the form of guidelines. The guidelines could be either written or verbal instructions, a document to be used, or an inherent knowledge of function performance requirements. Thus policy statements are either formal written procedures and directives involving usable documents or simply a statement of the method required to perform the function without formal instructions or procedures. The total of each component element in the management function process is illustrated in Figure 3.3f. In this illustration all the possible information flows, documents, and policy inputs are summarized. Normally, a decision process focuses on a specific problem which requires the performance of one or more functions. Thus several functions must be performed in succession to solve the decision problem. By connecting the appropriate functions, a decision network can be generated which portrays and defines the decision process for solving the problem. The technique developed in Figure 3.3 is the basis for illustrating a decision process as depicted in Figure 3.4. Each decision process can therefore be described in terms of the functions involved, policy statements, documents, and informational flow. A practical example of such a decision process is presented in the following section. As a practical example of the functional approach to decision processes, consider the estimate preparation process. At the small firm level, estimate preparation will normally involve execution of the following series of -

3.4 EXAMPLE OF A DECISION PROCESS: ESTIMATE PREPARATION

-

Example of a Decision hocess: Estimate Preparation h/

--1-i E-DOC

EXTERNAL DOCUMENT

POLICY G U I D E L I N E S A N D

r------

FUNCTION F1

P-DOC POLICY DOCUMENT

DECISION PHASE

STATEMENT

TRANSFER

INFORMATION

Note: no document transfer,

~nforrnation onlv

TRANSFER

per conversation, etc.

P-DOC

POLICY DOCUMENT INTERNAL DOCUMENT GENERATED

Y Figure 3.4 Management function decision network.

functions: CONSTRUCTION RECONNAISSANCE (PI ), ACTIVITY DEFINITION (P2), QUANTITY TAKE-OFF (P3), and ESTIMATE LABOR CONTENT (P4). The general arrangement and sequencing of these functions is shown in Figure 3.5. The estimator and project manager are generally responsible for all functions in this process. The estimator is responsible for the major portion of each function, including all aspects of ACTIVITY DEFINITION, QUANTITY TAKE-OFF, and LABOR CONTENT ESTIMATING. The estimator shares CONSTRUCTION RECONNAISSANCE responsibility with the project manager. The execution of CONSTRUCTION RECONNAISSANCE (PI) is

Decision Process Elements

shown as being directed by a policy* stipulating that VISUAL SITE INSPECTIONt is an acceptable approach. In terms of manpower management, this function requires that the estimator and project manager visit the project site and examine site conditions in light of the project scope, as defined by the plans and specifications (external document, E-DOC 3.1) to discover any special conditions that might influence labor (or other aspects of the job such as relocation of services and material storages). At the site, visual observation secures the background information for ensuing discussions between the project manager and the estimator, in which specific site problems and their impact on costs and schedules are evaluated. At the small firm level the need for evaluating labor related conditions within the site work region does not emerge, because an analysis of such aspects as labor availability, union agreements, and local productivities is obviated by virtue of a small firm's limited work region (or localization), small project labor forces, and utilization of a nucleus of highly skilled workers. For instance, because the small contractor works in a limited project environment, he is continuously aware of local labor productivity and of available manpower levels. Furthermore, the total of his project labor forces, relatively small in total numbers, rarely strains the local labor pool. Even when a shortage exists, the small contractor can often survive with a nucleus of men loyal to his firm. Finally, in a closed-shop area and because the small firm continuously interacts with the same unions the firm's knowledge of each union's policies and rules is quite extensive, iucluding all local restrictive practices. Thus in this environment construction reconnaissance focuses almost entirely on the evaluation of site conditions. Familiarity with site conditions aids the estimator in conceptualizing the structure to be built and serves as input basic for ACTIVITY DEFINITION (P2). This function includes dissecting the project scope into discrete work tasks or operations which are recognizable portions of the finished structure and determining items that are to be subcontracted (if the small contractor is the prime contractor). The detailed breakdown of work tasks enables the estimator to accurately evaluate the project's labor dollar content. A simple system of activity categories segregated by unique cost codes is used as a guide for identifying work tasks. The USE OF COST CODES introduces policy document P-DOC 3.1, the standard project cost codes. The project cost codes establish a system of project work tasks organized in a logical construction sequence representing the general scope of work, with the activities segregated by unique code numbers. The estimator defines the work by analyzing the plans and specifications and uses the project standard cost codes as a guide to group similar work tasks into a total listing of all project activities. This list establishes the project scope and is referred to here as the project scope document, I-DOC 3.1. "See Chapters 10 to 14 of MANAGEMENT ATTITUDE: POLICIES for detailed descriptions of typical policies used in practice at the small, medium-sized, and large firm levels and total field autonomy level. f Notice that when specific mention is made in the text to specific policies, the policy name is ital capitalized. Policy names are ital capitalized to distinguish them from function names which are capitalized.

,

E-DOC 3.1

m

1 1 yA,,,,, - - - - --- PLANS SPECS

MAKE SITE INSPECTION

FROM INITIATION PROJECT

VISUAL SITE INSPECTION

PERFORM CONSTRUCTION RECONNAIS-

USE COMPANY COST CODES TO

POLICY 3 USE

z

0

U

k!

PERFORM

DECISION PROBLEM ESTABLISH LABOR CONTENT (IN TERMS OF LABOR COST) )

U

W r

41

LEGEND

1

1

PROJECT

POLICY GENERATED INFORMATION -_-,N I PUT

I

VI Y

POLICY TO FUNCTION

POLICY 4

1

---T-----ea m u ~ ~ U~E O lR UNIT ~ y ~ mrrTc.

SEQUENCE OF FUNCTIONS AND INFORMATION FLOW MANPOWER MANAGEMENT FUNCTION

;4-.. .. 3.2

P-DOC

-

,

I

,, ,

SHEETS

FROM HISTORICAL- E-DOC 3 2 DATA BASE AGREEMENT

(

P4

EST~MATE LABOR

)

P-DOC 3.3

'..

\

P-DOC 3.4

I I SHEETS

PROJECT

BIDDER'

TOTAL LABOR COST TOTAL ESTIMATE

I TO PROJECT SCHEDULING

Figure 3.5

Estimate preparation decision process for small firm.

ESTIMATING DOCUMENTS >TO PROJECT SCHEDULING

Decision Process Elements

'

QUANTITY TAKE-OFF (P3) and LABOR CONTENT ESTIMATING (P4) are the critical functions of estimatc preparation and ultimately determine whether or not the contractor is awarded the project. Together these functions consume the major portion of the time committed to project definition. The estimator is responsible for both these functions. QUANTITY TAKE-OFF (P3) determines the magnitude of all activities in terms of their material nature, units of measure, and content. The estimator analyzes the plans and specifications by conducting a quantity survey of the drawings to obtain estimated quantities for each work task described by the project scope. Often this necessitates further dissecting of an activity into its component parts in order to accurately define its quantities. Regardless of the level of detail, quantities are defined by (1) direct take-off of items from the drawings (e.g., counting items) or (2) measuring dimensions for geometric shapes (e.g., rectangular column footings) representing a work task or its components and calculating the quantities. By calculating all quantities according to the sequence of activities in the project scope, the estimator can visualize the actual construction of the structure in a logical sequence from clearing and grubbing to final cleanup. The method of quantity development is basic to most detailed estimating in the construction industry, and varies only slightly from company to company. The manner in which quantities are recorded can vary significantly. Because the small firm estimates on a LABOR UNIT COSTING* basis, estimated quantities are recorded to a level of detail consistent with the firm's historical data base. The policy document used for developing and recording quantities is referred to here as P-DOC 3.2, the quantity sheet. During LABOR CONTENT ESTIMATION (P4), LABOR UNIT COSTS are developed for each work task and extended to labor dollars. The estimate recapitulation sheet, P-DOC 3.3, contains the estimated quantities from the quantity sheets (P-DOC 3.2), evaluated labor unit prices, and the total labor dollars. Apart from these policy documents, historical cost data enter the decision system at LABOR CONTENT ESTIMATING (P4). In particular, actual labor unit costs from previous work aid the estimator in developing labor unit costs when estimating potential work. Historical costs can be extracted from projects completed in recent years or from projects currently under construction. It must be emphasized that current labor unit costs best reflect prevailing wage rates and local productivities; thus these will be referenced most frequently. If a unit cost is not current, it must be adjusted to reflect current labor conditions. When LABOR UNIT COSTING is applied by the small firm contractor, the estimator is establishing the labor dollars available for each work task. Actual manpower (crew size) for the task is only implicit in the labor unit price, because the newly evaluated labor unit price is based on either historical labor unit costs or present experience, both of which re-

* Policy 4, LABOR UNlT COSTS: Labor unit costs are sufficient in project estimating provided that these costs reflect past experience from projects similar in scope and are adjusted, when necessary, to ensure cornpatability with the current project scope.

Example of a Decision Process: Estimate Preparation

35

flect the actual crew responsible for accomplishing similar work executed on previous jobs. Consequently, the estimator performs little productivity analysis; however, he does recognize that various factors will influence onsite labor performance and estimated labor unit costs. In order to reflect the impact of these factors, the estimated labor unit price is adjusted according to job conditions, the local labor market, the time of year, bidding strategy, and the historical nature of the base unit price. The estimator uses no systematic method or rationale for evaluating the effect of these perturbation factors. His evaluations are subjective and often rely solely upon past experience or "gut" feelings. Circumstances arise when the estimator can rationally evaluate adjustments in labor unit costs. For example, the estimator would increase a labor unit price for anticipated escalating wage rates if, over the construction period, the wage scale for the crafts involved is likely to change. The estimator is concerned only with crew sizing during LABOR COST ESTIMATING (P4) when a UNIQUE MANPOWER PROBLEM* appears. Under normal circumstances (according to the labor unit pricing method), the estimated labor unit price is based on methods using conventional tried and true construction techniques, such as a typical timber forming system for concrete column construction. Unusual situations generally arise when extremely unfamiliar work is encountered by a small contractor. For example, a small contractor was bidding a project that required the installation of aluminum seats in a football stadium. In order to evaluate labor costs, the estimator and project manager of this firm recognized the need for analyzing the construction method of anchoring each row of bench-type seats to a concrete base. After developing an approach, they tested their method on several sets of seats. The method proved feasible and provided the necessary production information with which they could formulate their labor unit costs. This proved to be a competent approach, because the firm was awarded the project as low bidder, and the project was extremely profitable. The concluding step of LABOR CONTENT ESTIMATING (P4) is to summarize the estimated cost of all components. Labor dollars are transferred from the estimate recap sheet, P-DOC 3.3, to the estimate summary document, P-DOC 3.4. Also transferred to this document are other costs such as the following: (1) material dollars, (2) equipment costs, ( 3 ) subcontract costs, and ( 4 ) temporary construction costs. The company's overhead, bonding requirement, and profit is calculated, and the sum of all the items constitutes the total estimated cost of the project. The owners must develop their bidding strategy and formulate the final price submitted as their bid. Project definition continues with project scheduling only if the contractor secures the project by virtue of being selected as the lowest responsible bidder. In summary, the basic manpower management problem of estimate preparation is to define the project's labor content in terms of the labor

* Policy 5, UNIQUE PROBLEM: If unique manpower and crew aspects appear, labor unit costs are developed by evaluating crew size, mix, and productivity; otherwise, traditional labor and crew situations are assumed.

Decision Process Elements

dollars per work category. This requires the performance and integration of CONSTRUCTION RECONNAISSANCE (P1 ), ACTIVITY DEFINITION (PZ), QUANTITY TAKE-OFF (P3), and LABOR CONTENT ESTIMATING (P4). These functions are performed sequentially, with each furnishing information for the ensuing function until the final labor cost estimate for each work category is defined. This decision process is illustrated in Figure 3.5 by linking the management functions and indicating how policies and documents interact with external documents through these functions to produce an information flow process that generates the labor cost estimate when performed by the estimator. The estimate preparation decision phase is one of many decision phases that the project team members of the small firm encounter over the life of a project. A composite of all decision phases will define the manpower management process of the firm. By analyzing each decision phase in terms of the decision network concept shown in Figures 3.4 and 3.5, the manpower management policies, their associated documents, and the procedures for executing each manpower management function will be exposed. This detailed description will, in total, represent the manpower management approach of the firm. A detailed consideration of project manpower management decision processes, although introduced in Chapter 15, is deferred to the companion volume in this series.

CHAPTER

4

The Portrayal of Management Roles

Traditionally, organizational charts have been used to portray the structure, staffing, and lines of communication in an organization such as a construction company. In addition, employee duties are often indicated through the use of job descriptions for each management and work position. Traditional organizational models, however, often fail to portray the real management roles of individuals and do not focus on the information and decision flows involved in construction management. Organizational charts thus tend to portray the position and role of ideal decision makers in a company structure, whereas in reality, especially in a project management team, managers often perform many functions involving mixed subsets of duties and develop informal structures for decision making that transcend formal organizational structures. The operation of a construction company requires the addressing and proper performance of many duties and tasks. Consequently, any understanding of the modus operandi of a company requires more than a description of its organizational structure and emphasis should be placed on the functions that must be performed in a company and decision situations rather than on the titles of the personnel performing them. Using this approach, the organizational structure of a construction company and its mode of operation can be described in terms of the functions performed by each decision maker or manager when addressing and performing the various decision processes involved in project manpower management. This chapter introduces a functional approach to the portrayal of the management role of construction management personnel. The functional plot concept is introduced and used to view the manager/supervisor role of project team members. The functional plot approach is used:

1. To portray the depth and breadth of an individual's role in project manpower management. 2. To establish specially focused job descriptions for an individual. 3. T o portray an individual's involvement in a decision process.

Portrayal of Management Roles

4.

To establish the interrelationships, and work relationships, that exist between different project team members. 5. To portray the growth development of various management areas and the emergence of specialist professionals.

4.1 THE MANAGEMENT ROLE OF AN INDIVIDUAL MANAGER

4e2

PLOT

The functional plot concept has potential for penetrating, and presenting, the management process of a company and the management role of individuals. Using this approach the dynamic behavior of the management team can be described, studied, and evaluated. In broad terms the management role of an individual manager or supervisor can often be inferred from the title of the position he holds o r by his location in an organizational chart. A more descriptive, detailed, and meaningful method, however, is to establish the manager's job description in terms of his responsibilities and duties. The manner in which this is accomplished depends upon whether the position is being advertised or scope outlined during the preparation of a specific project manual. A full description, however, requires the determination of the manager's areas of responsibility, together with the identification and listing of the management functions he must perform and of the decision processes in which he is involved.* In terms of project manpower management, the general location and scope of the manager's responsibilities can be referenced against the general management functions (i.e., plan, schedule, allocate, work, monitor, and record) and against his location in the management hierarchy. I n this way, in conjunction with plots for the project team, an idea of the relative location of the manager/supervisor within the range of project manpower management functions and in the project team can be visualized. The specific details of the manager's job assignments and duties can be outlined by the management functions he performs. In terms of the project manpower management areas, this can be readily accomplished by listing those basic manpower management functions in which he is involved. This set of basic management functions when referenced against their detailed description (see, for example, the Appendix) provides a detailed job description for the manager/supervisor. Finally, the dynamic role of the manager can be captured by identifying the decisio; processes in which he is involved and the manner in which he enters and performs the various component functions of these decision processes. As mentioned in the preceding section, the management role of a manager can be described in a number of ways, including the description of the management functions he performs. This can be readily done for project manpower management by referencing the functions performed by the manager against the forty-six basic functions. Using this referenced set of functions, the individual's management role can be mapped, or plotted, onto the Manpower Management Function chart.

* We are concerned here with the portrayal of management roles and not whether such a portrayal is desirable in a particular company or management situation.

The Functional Plot MANAGER'S FUNCTIONAL PLOT CONTOUR

\

FUNCTION NOT PERFORMED BY MANAGER

, FUNCTION

PERFORMED BY MANAGER

Figure 4.1

Functional plot for a manager who performs functions A, B, and C.

Functional maps, or functional plots, can be simply developed and interpreted. Consider, for example, four management functions A, B, C, and D. Assume that a manager is involved in the performance of the three functions A, B, and C but not in the performance of function D. A functional plot of the manager's job assignment should then include the three functions A, B, and C but not function D. The graphical representation of this situation is shown in Figure 4.1. Similarly, Figure 4.2 shows the functional plot of another manager, who performs only functions C and D and not functions A and B. It should be noted, however, that functional plots do not portray areas of responsibility.* Consider now a situation wherein one manager performs functions A, B, and C and the second manager performs functions C and D. In this case both managers perform function C . It may be that they jointly, in collaboration and at the same time, perform this common function C or that they each perform the function separately at different times and possibly in different levels of sophistication or detail. The functional plots for each manager are shown in Figure 4.3, wherein both functional plot contours embrace a portion of the space representing the performance of

Figure 4.2

Functional plot for a manager who performs functions C and D.

*There are many ways of management involvement in a function. Some personnel act as information gatherers, some as briefers, some have general responsibility but leave performance of the function to subordinates. The concentrated focus on functional performance rather than on areas of responsibility follows from the interest in the portrayal of management roles and the modus operandi of the management process. It provides a method for determining and portraying the individual role in an organization.

Portrayal of Management Roles FUNCTIONAL PLOT FOR ANOTHER MANAGER / '

BO TH M A N A G ER S P E R F O R M THIS FUNCTION

F U N C TI O N A L ' PLOT FOR ONE MANAGER

Figure 4.3 Functional plots for two managers who either jointly, or separately (at different times and levels of detail), perform the same function, C.

4.3 ORGANIZATIONAL CONCEPTS

function C . Generally, the sectioning of such functional spaces does not necessarily mean that each manager works on a portion only of the function or works jointly. It does, however, indicate a management situation that needs further clarification than that given by the functional plots. As a further illustration of the functional plot technique, the typical roles of both the foreman and the superintendent at the small firm level are shown in Figures 4.4 and 4.5, respectively. The careful reader will observe that several functions are common to both managers. As shown, each of the plots has been referenced independently on the Manpower Management Function chart. In subsequent illustrations it is often convenient to map many managerial functional plots on the one chart. If the reader has mastered the concepts and techniques introduced in this section, these functional plots can be readily interpreted. Another use of the functional plot is to map the functions involved in a decision process without referencing the personnel involved. In this approach, as distinct from that introduced in Chapter 3, the Manpower Management Function chart is used as a referencing framework for plotting a decision process. This technique is especially useful for portraying individual manager roles in the decision process when their individual functional plots are indicated through the use of overlays. The relative location and shape of a functional plot for a specific manager will depend upon the location and order of the various management functions in the Manpower Management Functions chart. Consider, for example, the functional plots of two employees, the first of whom has a more management oriented, broader set of functions to perform than the second, who has a more work oriented set of functions. Assume further that the second employee is supervised by the first. Given an hierarchical ordered set of management functions, the functional plots of these two employees will have the general appearance shown in Figure 4.6. These functional plots portray the relative breadth of management responsibility and the relative depth of technical involvement of each. In addition, the general relationship of the plots reflects the traditional line relationships that exist between the two employees. As shown in Figure 4.6, this line rela-

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

W1 RELEASE STAFF TO PROJECT

P2 ACTIVITY DEFINITION

S2 ESTABLISH CONSTRUCTION SCHEDULE S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES S4 DEVELOP WORK PACKAGE DETAILED LOGIC

AI ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

P3 QUANTITY TAKE-OFF P4 ESTIMATE LABOR CONTENT

-

I

/

-

DEFINE WORK PACKAGE

DEFINE CURRENT PROJECT STATUS

DETAILED FIELD QUANTITY TAKE-OFF P7 ESTABLISH CREW REOUIREMENTS

REVISE CONSTRUCTION

PLAN WORKFACE

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES A4 DETERMINE NUMBER OF FIELD CREWS

57 SCHEDULE PROJECT CREWS S8 -SCHEDULE CREW MEMBER WORK SEQUENCES

AS ADJUST CREWS

- --

A6 ASSIGN INDIVIDUAL WORK TASKS

FOREMAN

MONITOR M

W2 PRE-JOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 \ ESTABLISH FIELD CREWS

M4 ACTIVITY ANALYSIS

W6 SOLVE HUMAN RELATIONS PROBLEMS W7 INITIATE INDIVIDUAL WORK TASKS WR . .

EXECUTE WORK

Figure 4.4 Foreman's role in project manpower management.

M5

RECORD R R1 HISTORICAL DATA BASE R2 GENERATE LABOR MANAGE MENT DATA R3 PROJECT COST ACCOUNTING R4 UPDATE AND REVISE WORK PACKAGE SCOPE ---

LABOR PRODUCTIVITY QUANTITIES

RESOURCE USE

u

\

M8 FIELD INSPECTION

LABOR HOURS ---

FIELD AUTHORITY DOCKETS

I

PLAN P

SCHEDULE S

PI CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

P2 ACTIVITY DEFINITION

52 ESTABLISH CONSTRUCTION SCHEDULE S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

P3 QUANTITY TAKEOFF

P4 ESTIMATE LABOR CONTENT

S4 DEVELOP WORK PACKAGE DETAILED LOGIC

P5 DEFINE WORK PACKAGE

S5 DEFINE CURRENT

DETAILED FIELD

TAKEOFF P7 ESTABLISH CREW REQUIREMENTS P8 PLAN WORKFACE LAYOUT

ALLOCATE A

r

S6 REVISE CONSTRUCTION SCHEDULE S7 SCHEDULE PROJECT CREWS S8 SCHEDULE CREW MEMBER WORK SEQUENCES

J

WORK W

MONITOR M

RECORD R

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W1 RELEASE STAFF TO PROJECT W2 PRE-JOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES A4 DETERMINE NUMBER OF FIELD CREWS

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS

M4 ACTIVITY ANALYSIS

R4 UPDATE AND REVISE WORK PACKAGE SCOPE

M5 LABOR ANALYSIS

RS LABOR PRODUCTIVITY

M6 WORK PROGRESS

R6 QUANTJTIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

AS ADJUST CREWS

ASSIGN INDIVIDUAL WORK TASKS

\

SOLVE HUMAN RELATIONS PROBLEMS W7 INITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

\

M8 FIELD \INSPECTION

Figure 4.5 Job superintendent's role in project manpower management.

R1 HISTORICAL DATA BASE R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

R8 FIELD AUTHORITY DOCKETS

1

Organizational Concepts INDICATION OF FUNCTIONAL SPREAD

>

TOP MANAGEMENT A R E A

FUNCTIONS COVERED IN JOB DESCRIPTION FOR EMPLOYEE 1 ARE MORE MANAGEMENT ORIENTED

NUMBER O F LEVELS, INDICATION OF WORK VOLUME, A N D SPECIALIZATION

I I

'

iEMPLYEE w

ITTOM MANAGEMENT

+

/

LINE OF COMMAND FOR AUTHORITY AND COMMllNlCATlON

JOB DESCRIPTION FOR O Y E E 2 IS M O R E WORK

ORIENTED

+I-

INDICATION O F SPECIALIZATION

Figure 4.6

Organizational concepts: management and work oriented employees.

tionship is focused on a portion only of the management responsibility of the more management oriented employee, who may, for example, have other work oriented employees reporting to him in other functional areas. . The traditional line concept of management embodies delegation of authority from the highest executive in the organization to the employee who has least responsibility in the organizatiod and who has no authority over others. Delegation of authority must be such that line personnel have responsibilities cdmmensurate wtih their authority. The subordinate cannot be said to have responsibility if he does not have or take delegated authority. The definition of authority and responsibility in a manner designed to best use the abilities of each man is the essence of organization. As mentioned in the preceding section, functional plots do not explicitly indicate areas of responsibility or of delegated authority. As an indication of functional plots that exhibit the development of a departmental organizational structure and the establishment of multiple work teams, consider the set of manpower management functions associated with the decision process of estimating the labor content of a project. A functional plot of this professional area is shown in Figure 4.7a. If all these functions were performed by one person, his functional plot would correspond to the overall embracing contour of Figure 4.7~. If, however, these functions were performed by a chief estimator [who carries out CONSTRUCTION RECONNAISSANCE (PI ) and establishes the ACTIVITY BREAKOUT (P2) 1 and who is supported by two estimators, who perform the QUANTITY TAKE-OFF (P3) and LABOR ESTIMATION (P4) functions, then this figure could be dissected into several

Portrayal of Management Roles ESTIMATING FUNCTIONS

CHIEF ESTIMATOR

CONSTRUCTION RECONNAISSANCE

CONSTRUCTION RECONNAISSANCE

ACTIVITY DEFINITION

ACTIVITY DEFINITION

1

Q U A N TIT Y TAKE-OFF

ESTIMATE LABOR

~ u TAKEA N T I OFF Ty),

CONTENT

,I zANTIT TAKE-OFF

CONTENT

Figure 4.7 Development of organizational structure as a function of management and work loads. (a) Estimating functions. (b) Chief estimator. (c) Line organizational structure. (d) Functional plot line structure.

functional plots, as indicated by the dashed lines in Figure 4.7a. Notice in this case that the traditional line concept (as far as these manpower management functions are concerned) passes up to the chief estimator through a single functional area. These plots illustrate the typical management solution to a work overload situation in a particular functional area. As shown in Figure 4.7b, the common organizational solution is to set up multiple copies of the basic hierarchical work team, that is, to incorporate in the departmental structure of Figure 4.7a multiple sets of organizational components similar to that shown in Figure 4.7b. In this situation, the area manager can assign different segments of work to the various teams as project work load increases and as work volume decreases reassign individual teams to similar work on other projects. The basic hierarchical structure between management and technical or work oriented employees is further illustrated in Figure 4.7c, in terms of the traditional line structure for personnel involved in the estimating and bidding decision process. The line structure shown indicates increasing involvement in policy formulation and decision making, with personnel located up the management line and increasing work orientation in a narrowing technical field with personnel located down the management line. I n this case the functional plots for each member of the group could appear as shown in Figure 4.7d. Notice that this figure shows the functional plot of the assistant estimator (here working as a quantity surveyor)

Organizational Concepts INCREASING

POLICY FORMULATION AND DECISIONMAKING

ROLES

METHOD DETERMINATION DIRECT AND INDIRECT COST EVALUATIONS

ESTIMATOR

QUANTITY

DETAILS

TECHNICAL

FUNCTIONS

NARROWING

TECHNICAL FIELD

(c)

ESTIMATOR CONSTRUCTION

/ ESTIMATOR \ P2

ACTIVITY DEFINITION

TAKE-OFF

'------

u ESTIMATE LABOR CONTENT

Figure 4.7

(continued)

c o m p l e t e l y i m m e r s e d in t h e plot for t h e e s t i m a t o r . N o s p e c i a l s i g n i f i c a n c e n e e d b e a t t a c h e d to t h i s r e p r e s e n t a t i o n o t h e r t h a n t h a t t h e e s t i m a t o r d o e s not p e r f o r m quantity take- off. I n any case, t h e f u n c t i o n a l plot for t h e e s t i m a t o r c o u l d r e a d i l y b e drawn in a m a n n e r that d o e s not e m b r a c e t h a t for t h e a s s i s t a n t e s t i m a t o r (see, for e x a m p l e , t h e d a s h e d - l i n e c o r r e c t i o n to F i g u r e 4.74 F i g u r e 4.8 i l l u s t r a t e s t h e f u n c t i o n a l p l o t s of f i e l d p e r s o n n e l in a common f i e l d s i t u a t i o n . T h e p r o j e c t m a n a g e r h a s d i r e c t l i n e a u t h o r i t y o v e r the s c h e d u l i n g e n g i n e e r and t h e c o s t a c c o u n t a n t . T h e p r o j e c t m a n a g e r h a s

.*

* The perceptive reader may suggest that the relative position of the QUANTITY TAKE-OFF (P3) and LABOR ESTIMATION (P4) functions be reversed to give simple hierarchical plots for the chief estimator, estimator, and assistant estimator. That this is not done reflects the general order of these functions in the estimate preparation decision process.

Portrayal of Management Roles PROJECT MANAGER A1

ALLOCATE OFFICE, ENGINE E R I N G . AND D E S I G N STAFF A2 ALLOCATE F I E L D STAFF A3 DETERMINE

TRADE MANPOWER PROFILES

I I I

HEAD OFFICE ADMINISTRATIVE LINE I

W1 RELEASE STAFF TO PROJECT

W2 PRE-JOB LABOR CONFERENCE

CURRENT PROJECT

W3

W O R K FORCE MANAGEMENT

I

I

1

I

SUMMARY

I I1

LINE

I

I

I

I

I SCHEDULING

COST A CCO UN T A NT

CONSTRUCTION SEQUENCE

HEAD OFFICE ADMINISTRATIVE LINE

i

CURRENT PROJECT STATUS

GENERATE LABOR MANAGEMENT DATA

PROJECT FORECAST

PROJECT COST ACCOUNTING

ESTABLISH

CONSTRUCTION SCHEDULE DEFINE CURRENT PROJECT STATUS REVISE CONSTRUCTION

Figure 4.8 Development of organizational structure: individual functional areas report to superior manager.

delegated scheduling authority to the scheduling engineer and works with the cost accountant in the maintaining of CURRENT PROJECT STATUS REPORTS (M2). Both the scheduling engineer and the cost accountant, however, have administrative links with their head office managers. As shown, the functional plots portray the functions actually performed i n their areas of responsibility. Thus the by each member of the field breadth of the functional plot for the project manager does not extend into the scheduling set of management functions. If, however, the project manager is involved in the overall determination of the CONSTRUCTION SEQUENCE ( S l ) and ESTABLISHMENT OF T H E CONSTRUCTION SCHEDULE (S2), his functional plot must be enlarged to include these functions. The cost accountant reports to the project manager and works with him on the MONITORING OF PROJECT STATUS (M2) and is charged with several project labor recording functions. The functional plots of Figure 4.8 portray the elements of the project team structure in terms of both line and administratively linked plots and in delegated areas of professional performance and responsibility. As men-

;earn

Portrayal of Project Team Management Roles HEAD OFFICE COST ENGINEER

I I (

SUMMARY PROJECT REPORTS M2 CURRENT PRO J ECT STATUS

PROJECT MANAGER

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1

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C U R R E N T PROJECT STATUS DQnECCElnWAl

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1

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K R K PROGRESS

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Figure 4.9 Development of organizational structure. (a) Line and staff development. ( b ) Illustration of project and administrative line structure.

tioned in the preceding paragraph, these plots can be examined for organizational weaknesses (as, for example, the noninvolvement of the project manager in scheduling functions) as well as for accuracy. Finally, Figure 4.9 presents functional plots that illustrate the organizational development of line and staff functions for the labor cost control segment of a construction project. As indicated in Figure 4.9a, the field cost engineer is under the project line supervision of the project manager, receives staff assistance from a head office cost accountant, and has an administrative link with his professional supervisor, a head office cost engineer. Figure 4.9a presents the individual functional plots of each person, whereas Figure 4.9b indicates how the functional plots may appear on the Manpower Management Functions chart. The functional plot approach presents an effective method of portraying the various management roles of project team members. As demonstrated in Section 4.3, the functional plot approach provides a much deeper penetration into the roles of managers and supervisors than can be gained from the traditional line and staff organizational chart. The functional approach, -

4.4

PORTRAYAL OF PROJECT TEAM MANAGEMENT ROLES

~

Portrayal of Management Roles HEAD OFFICE COST ENGINEER

1 S UMMARY

PROJECT MANAGER

PROJECT

I

REPORTS

COST ACCOUNTANT

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PROJECT COST ACCOUNTING

1

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R5 LABOR PRODUCTIVITY R6 QUANTlTl ES IN PLACE

RESOURCE USE

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fb)

Figure 4.9

(continued)

however, when coupled with the traditional line and staff concept, can portray the dynamic nature of the management role of individuals in the project team organization. In a broader sense, the management function plot concept of manpower management can provide the vehicle that enables a meaningful description of the company and project team organizational structure to be developed and analyzed. The various uses oE the functional plot to achieve this objective will be discussed in the following paragraphs. A functional plot for a project team member can be examined to judge the breadth and depth of his role in the project manpower management process. The plot will show quickly the number and types of functions that the individual performs. By viewing the plot in this manner, it is possible to judge if the individual is assigned too heavy or too light a work load. In addition, the functional plot of an individual will portray whether the individual's focus is specialized or spread over the broader spectrum of manpower management functions. This provides an indication of his role in manpower management. An individual functional plot can be expanded to include the detailed duties performed by the project team member by extracting from the job descriptions in the Appendix the relevant duties appropriate to the performance of each function within the plot. In this way, a specifically

Portrayal of Project Team Management Roles

49

focused job description for an individual can be established. This job description plot can be useful to further analyze an individual's work load and/or the establishing of a basic set of job qualifications for the position. The functions performed jn any manpower management decision process can be portrayed by a functional plot. When the plots of the project team members are overlaid onto the decision area plot, the roles of those project team members associated with the decision process can be identified. Upon further examination these plots will indicate, for example, whether the correct mix of individual expertise and authority is assigned to the specific decision process. The functional plot can be used to establish the interrelationships and work relationships that exist between different project team members. Generally, the functions plotted for personnel higher in the company and project management hierarchy will be located toward the top of the chart of basic functions, whereas those for a supervisor closely related to workface activities will be located or grouped toward the bottom of the function chart. In an ideally organized company and project management team, the plot of functions of each manager/supervisor should generally be concentrated in one area or level of the Manpower Management Functions chart. The extent of the function chart covered by the plot for an employee will be determined largely by the size of the company and project. Consequently, the plot for an employee of a small firm will probably cover more functions than will a plot for an employee in a similar position in a large company. By comparing the plots of different employees, several aspects of the project team organizational structure can be examined. As an example, the plot for the project manager can be compared with plots for the field superintendent, the foreman, and others. Such a comparison is especially useful for large complex organizations and may question whether functions are properly assigned to personnel in conjunction with their work loads, titles, and salaries. Thus the title of an employee does not provide an adequate basis for comparing two individuals within the same company or in different companies. In addition, the title of an employee may not give a true indication of the range and depth of his responsibilities. However, a functional plot can provide a meaningful description of the responsibilities and duties of an employee, regardless of his formal title. In this way, functional plots can reveal the actual company structure as far as manpower management is concerned rather than the theoretical structure displayed in organizational charts. Finally, the functional plot can be employed to portray the growth development of a management area or a specialized profession. A comparison of the functional plot of a management area at different levels of practice will reveal a definite professional growth pattern of that area. As an example, consider the cost control area of manpower management. At the small firm level, cost control functions focus on simple bookkeeping techniques and recording historical labor cost data. Cost control begins to assume a professional flavor at the medium-sized firm level where an inte-

Portrayal of Management Roles

grated labor cost control system emerges to assist in the identification of problems through functions that indicate specialized forecasting techniques and labor productivity analyses. Cost control becomes engineering oriented at the large firm level in terms of a systems approach to cost control with the utilization of scientifically applied cost control techniques and methods as required by work package related functions. Specific illustrations and examples of the various applications of functional plots, as discussed in this section, are provided in the following chapters, and are related to construction firms in the small, medium-sized, and large firm environments.

CHAPTER

5

Project Team Concepts The mode of behavior of a construction company can be described by the manner in which it acquires, organizes, and handles its portfolio of projects. At any one time these projects are being sought, bid, added to the company's portfolio, and removed by completion. Consequently, from the contractor's point of view, each project has a life cycle with recognizable birth, growth, decay, and death phases. Each life phase has its own management, organizational, and decision problems and involves different professional and functional groupings of company employees. In this management environment the company must be continuously spawning project management organizations, supporting field effort during project startup and field construction, and reabsorbing key personnel back into the home office (for later reassignment) while punch lists, wrap-up, and hand-over aspects of the completing project are being finalized. These management and organizational problems arc magnified for rcmote or inconveniently located projects. The planning, initiation, monitoring, and management of each construction project requires the combined talents and efforts of a variety of professionals at all levels in the construction management hierarchy. Some professionals perform specialized functions concentrated wholly within one life stage of a project. For example, estimators perform functions during the quantity take-off and planning phases of a project, and consequently may move frequently from project to project. Other professionals, however, are involved for long periods of time on the project site and become identified with project field management. Thus the nature and demands of a construction project establish the basic framework within which the various construction management personnel act and interact with each other. Many contractors, however, operate with between three and twenty projects in a continuously changing portfolio of projects, so that collectively, at any one time, projects can be at different stages of the project life cycle. The contractor must therefore cope continuously with complex and dynamic organizational, resource availability, and project management problems in the normal course of running his business. Hence

Project Team Concepts

5.1

PROJECT TEAM COMPONENTS

he must devise an effective but flexible management approach and organization for each project, yet maintain a general business, management, and professional capability for the company as a single entity. A common and practical solution is to locate all general business functional groups in a head office, or conveniently located regional office, together with the relevant professional project oriented staff support groups, and to locate all field construction and field management functional groups in the field at the project site. The individual projects are then integrated with the construction company through the performance of project management functions. These project management functions can be performed by head office o r field based personnel, or by an employee who is both head office and field based. Each alternative exists in practice and creates its own unique project management environment. The selection of a particular form is a critical management decision significantly influencing the management environment, the project team structure, and the professional and decision roles of the project team members involved. This chapter introduces concepts related to the development of the project team structure and relates them to common organizational forms found in practice. Following chapters consider in detail the organizational and management environments that foster these typical project team structures. In its most elemental form, the project team is composed of separate head office and field management components that are almost functionally autonomous, and consequently their interaction can be described as being segmented over time. The head ofice component can be segregated into essentially two different functional areas, whereas the field component is a complete functional entity in itself. For instance, the head office is functionally responsible for pre-job project definition (e.g., estimating and scheduling) and broad-based project management after construction begins. The field component, however, is functionally responsible only for on-site construction management activities. When referenced against time, the interaction between these functional areas begins when the head office allocates and releases personnel to the project, defines its scope, and plans its execution. The project is carried to the field when head office management issues it to the field component for on-site construction startup and execution of the field work. Finally, through periodic field input, the project returns to the head office, where it is contractually finalized and released to the client. Because functional autonomy exists, the interaction between these functional areas is generally weak at this component level of the project team structure. The advantage of this form of project team structure is that it clearly separates the construction management functional areas so that different professionals can adequately cover the project management sphere of action by complementing each other's talcnts. Thus the dual partnership firm in which one man predominantly handles business and office matters, and the other acts predominantly as a construction manager, is a typical example of this project team component structure. The pressure of work and the passing of time confirm the division of responsibilities in such dual partnerships, the initial breadth of expertise of the individuals notwith-

Project Team Components

standing. Their office discussions implement the ad hoc management-byexception emphasis of the project team component structure. Another common situation illustrating this type of project team structure is encountered in foreman or superintendent run projects, wherein head office managers perform general project related business functions, and through heavy office commitments and function overloads can only monitor field activity and progress through field reports. After company management decides to bid on a project, the specific manpower management functions initially encountered by the head office component are those involved in planning and scheduling. When executing these functions, the head office essentially defines the magnitude of a project's labor content and the project duration. Planning actuates the estimating function, which is the principal function for evaluating the project's labor cost component and project's total cost. The scheduling function will commit a project to a specific time frame by defining the construction sequence logic and activity durations in rough or approximate times compatible with a schedule that will enable project completion within a specified contract time. It should be emphasized that while performing these specific manpowcr management functions, the head office also handles other business management functions, including policy determination, legal matters, and loan requisitions, as well as the major procurement functions of expediting, purchasing, and subcontracting. As part of the pre-job, off-site project definition, the head office must allocate the project to a suitable field manager and schedule the project according to his availability. The head office then delegates full authority to field management and gets involved with construction management only on a management-by-exception basis. Thus the initial link between the head office and the field component occurs when the project is issued to field management for construction startup. Field management, while constrained to total project costs and the general time slot of the project schedule, performs most of the field construction management functions. Specifically, from the point of view of manpower management, field management will define and detail construction methods, schedule and supervise the project's actual work force, allocate manpower to each work task, monitor crew performance in relation to activity progress, make manpower management decisions, and handle labor relations problems such as hiring and firing and the resolution of jurisdictional disputes. During the execution of these functions, head office management may enter the decision process whenever unusual situations arise. For example, although a labor relations problem often starts at the site, it may proceed to the hiring hall via the union's business agent. From the union it is channeled back to head office management for resolution and then to the site for enactment of the final solution. Apart from the preceding specific manpower management functions, field management is also responsible for other areas of construction management, such as the on-site coordination of subcontractors, the planning and management of material handling activities, and the scheduling of project activities and construction equipment. During construction the primary communicative link between the head

I

Project Team Concepts

office and the field is project information flow (payroll data, construction progress reports, and quantities in place). This field input to the project management component is the necessary ingredient required to generate project labor cost data and such related information as may be required by accounting and payroll functions. The basic output provided by this recording function is then translated into project labor cost reports and company payroll documents, and is used for updating project schedules. The labor cost reports and revised construction schedules serve as the basis for head office monitoring. Provided that the field supplies these data frequently and satisfies periodic head office inquiries, field management maintains both full authority to execute construction and autonomy as a managing group. The basic field reports either convince management that field progress is satisfactory or raise questions that may result in site inspections and field conferences. However, aside from this stimulus, head office management also makes periodic site inspections to keep abreast of overall construction progress and to maintain good relations with project field management. The Project Team Component (PTC) structure can therefore be represented by three independent functional areas. These management areas are: Project definition. Field construction. Project management.

5.2 THE TRAVELING PROJECT MANAGER

Each area is essentially autonomous, with the field component subjected to head office constraints only on a management-by-exception basis. The relationships between these project team components are schematically and symbolically illustrated in Figure 5.1 for a typical head oflice and field site. The PTC concept of construction and project management is developed in detail in Chapter 6 . The construction firms commonly using this management approach can be identified by the construction and management environment in which they operate and by their organizational structure. In this way, the project team members can be identified and their roles and functions in the manpower management process described. The manner in which the project team members operate and the various documents they use reveal the basic manpower management policies subscribed to by a firm operating at this level. These manpower management policies collectively portray a unique management approach to construction management. The firm categoly most commonly identified with the Project Team Component approach is the small firm. A basic problem of construction management arises out of the physical separation of the field work sitc from the head office and the need to establish effective interaction between head office and field operations. The problem is aggravated with increase in project size and complexity, because these factors place greater demands on management effort at the same time that management is becoming increasingly aware of the need to strengthen links with the field.

PERIODIC SITE INQUIRIES AND INSPECTIONS PROJECT SCOPE

Figure 5.1

Project Team Component (PTC) concept.

A common management solution to this problem is to introduce a new decision maker who can operate at both head office and field levels, and by his management role knit together head office and field components, thereby compromising the autonomy of each component. This decision maker is responsible to, but acts independently of, top-level management, while maintaining full authority over field operations. To meet this end, he must continuously interface with both top-level management and the field. This interaction is accomplished by frequent travel between the head office and field site and suggests that he be described as a Traveling Project Manager. This most common form of the project team concept in construction practice has as its primary focus the integration of head office and field management functions, with the objective of ensuring better management control of field operations. This integration is established through the efforts of a head office based manager, often called the project manager but sometimes referred to as a general superintendent. In the context of this text, the manager is referred to as the Traveling Project Manager.* 'The descriptive title "Project Manager" (PM) is the nomenclature most common to the construction industry. "General Superintendent" is an alternative title often given to this person. Here "Traveling Project Manager" (TPM) is a coined title for describing a particular project team structure. Thus TPM and PM are interchangeable titles in this section.

Project Team Concepts

The Traveling Project Manager (TPM) acts as a courier of project data, status, and requirements between head office top management and the field work enviromnent. Although the field staff is responsible primarily for project construction, it also carries out the scheduling, allocation, and monitoring directives of the Traveling Project Manager. Similarly, the TPM reports to top management on project status and relevant manpower management problem areas, thereby linking the head office and field functions together continuously over time. The advantage of this type of project team structure is that project problems can be handled almost simultaneously by both top management and field personnel. In this way, project status reports, policy statements, and decisions are readily available and an integrated project information flow becomes possible. The Traveling Project Manager management approach generally releases executive management from the burden of performing multiple management functions at the head office level. Characteristically, the TPM approach requires the distribution of management functions to a larger number of decision makers. This tends to free at least one executive manager from direct daily project responsibility, which in turn enables him to concentrate on, or expand, his business management focus. Executive management normally participates in project definition by designing the struchre and staffing of the project team, and finally authorizing work commencement. Thus top-level management will assign both the TPM and estimator to the project, and eventually all other project team members. Depending on the size and structure of the firm, one executive manager may for specific projects assume the role of either the Traveling Project Manager or the estimator or both. His business management functions will be minimized by transferring the majority of his executive responsibility to another executive manager. This allows him to concentrate fully on project management. Conversely, the Traveling Project Manager may not be an executive type, and therefore may be released of business management responsibilities. He becomes solely a project manager and thus assumes a greater degree of independence from top-level management problems. In either case, the project manager becomes a full-time project team member and can concentrate entirely on project management. Therefore, once construction commences, he is expected to assume full responsibility and authority over field project execution and related head office planning and project management staff functions, and is responsible only to executive management. In practice, it is common for the Traveling Project Manager to have responsibility for three to four projects within the firm's portfolio of projects. The initial link between the field and head office levels occurs when the TPM executes the project scheduling functions prior to construction startup. Together with the key field manager(s), normally the job superintendent, the TPM schedules the project construction life cycle by grossly defining all construction activities and their durations consistent with project contract time constraints. To supplement the project schedule, these managers also engage in short-range manpower planning. By interfacing with the field managers in this manner, the cost, scheduling, and

The Traveling Project Manager

57

allocation directives of the TPM can be carried through to the field work environment. Field management will then assume full responsibility for carrying out these directives by performing the field construction functions in accordance with the stated directives. In terms of field manpower management, this would incorporate all functions relative to daily crew planning and the scheduling and allocation of labor. After work commences, the Traveling Project Manager directs the monitoring functions during field construction. He informs field management of the various labor related information he requires for determining project status and continuously interacts with the field to ensure that the proper payroll and activity data are flowing from the field. Depending on project size, the TPM will either directly coordinate the flow of project data to project cost accounting for processing or will staff the project with personnel assigned with this specific responsibility. He will subsequently coordinate the development of the necessary progress reports in order to inform both top-level management and field management of project status. To accomplish this, the TPM maintains close contact with the field by physically traveling to the project site on a continuous basis, often daily. The field staff uses project status information and those directives prcvided by the Traveling Project Manager to enact any manpower management decisions which are deemed necessary. In most instances, the field is fully responsible for these manpower management decisions unless significant changes are necessary. However, consultation with the TPM is common and occurs frequently when unique or difficult manpower problems are encountered. Thus the TPM is involved in problem solving on a regular basis rather than solely on the management-by-exception basis common to the small firm Project Team Component management approach. Top-level management may enter the decision process, depending upon the magnitude and significance of the respective problem. Regardless of the level of management involved in problem solving, the combination of an up-to-date and integrated project information flow with a continuous personal link to the field by a head office manager who is fully briefed by top management on its thinking and policies will ensure instantaneous action on any problem area. Finally, field management is responsible for daily crew management and must solve problems arising from work allocations and the visual observation of crew performance. The life blood of the TPM approach is the live monitoring of field conditions and status and the rapid decisive input of top management policies and decisions in response to field problems. This is achieved by the establishment of good management and labor relations, requiring close and continuous cooperation between both the field managers and the TPM as well as with top-level management. By working in harmony the project team members can create an environment that will be helpful to sound project management. This management attitude, when transferred to field operations, can instill higher levels of motivation among the project management and labor force. The net result appears in better quality workmanship and higher production levels. These attributes help the project team to complete the project on schedule and within the estimated cost.

Figure 5.2 Traveling Project Manager approach.

Field Based Project Management

The focus on better labor relations must begin in the head office and move quickly to the field for implementation, through close contact and continuous interfacing between project team members and the labor force. The key is the Traveling Project Manager's flexibility to interact and ability to communicate frequently with the field work force. The TPM management concept is graphically illustrated in Figure 5.2 in terms of manpower management functions. A typical head office location and field site are schematically and symbolically drawn on this figure. Superimposed onto the office and field site are the project team components, the general manpower management functions, and the general information flow lines. The manpower management responsibility focus of the TPM is highlighted by a series of three integrated management cycles which are performed continuously over the project's life. These management cycles are: A head office loop. Head office and field interface loop. A field loop.

5.3

FIELD BASED PROJECT MANAGEMENT

These TPM management cycles establish a constant interfacing between the head office and field operations. In this way the information flow provides the basis for an integrated project information system. Finally, client and contractor interface is described by information flow lines to both the project definition and project management components. The TPM concept is expanded in Chapter 7 by identifying the construction environment in which it most commonly emerges. The characteristics of this environment will serve as the basis for categorizing the type of firm most commonly associated with the TPM concept. The organizational structure of this firm will evolve around the Traveling Project Manager and will be discussed in terms of the interrelationships between the project management staff and their roles within the organizational and TPM project team structures. The manner in which the roles of each person are performed is determined by company policy. These policies will provide a foundation for describing the methods of performing each function and the information flow generated from which manpower management decisions are made. The decision approaches that emerge in total describe the basic approach to manpower management for a firm operating with the TPM concept. In construction practice, the modus operandi of the medium-sized construction firm most closely approximates the management approach associated with the Traveling Project Manager concept. At a certain level of project size and complexity, it becomes desirable, and for remote sites essential, to both strengthen field management effort and to broaden project team responsibilities. This management need stems from the requirement to cope with an increased level of detailed project information and the desirability of increasing the effectiveness of field management by relieving key field personnel of management function overloads.

Project Team Concepts

A characteristic mdnag$ment Qo~ution is to assign relevant project oriented head office functions for fiild based execution by incorporating into an enlarged field project team structure personnel capable of performing the transferred head office functions. In this way a complete project team structure emerges, having dual lines of communication: internally to the field based project management team headed by a full-time "on-site" project manager, and externally direct to each relevant head office functional area. Since more management functions now appear, and are staffed, at the field level, a more balanced and capable field organization emerges than that achieved by the Project Team Component or Traveling Project Manager management approaches. The project management approach described in the preceding paragraphs represents a significant step in project team development toward the fully integrated and autonomous project team. Its management approach is built around field based head office functions and is referred to in this chapter as the Field Based Project Management approach. The company structure supporting this project team approach tends toward specialization with the general management functions segregated by specific departments, divisions, or areas. This relieves top-level management of executing those functions that are more detailed in nature and frees them for managerial functions related to business operation and the supervision of employees. Specific manpower management functions are performed by groups identifiable with each function. For instance, planning functions may be executed by an estimating group, while some of the scheduling and allocation functions are the responsibility of scheduling and cost engineering groups. A construction group is responsible for the field construction functions. Each group can be characterized, for our purposes, by specific decision makers responsible for a certain manpower management task. These decision makers are associated with the project from its inception and follow it through to completion. An employee from a group located in the head office will normally have a counterpart at the field site within the field project organization. Collcctively, these employees form a team, with a specific employee responsible for executing particular tasks for each function of the manpower management process. When gathered in an organizational framework headed by a project manager, the employees become the project team. The manpower management process begins (see Figure 5.3) in the head office with project team design and staffing which is primarily the responsibility of project management. Almost simultaneous with project team design, the relevant planning, scheduling, and allocation functions begin. At the head office level, broad-based scheduling and allocation is performed by either construction office management types (e.g., general project manager, general superintendents, or project engineers) or by personnel who specialize in scheduling and allocation functions (e.g., scheduling engineers and/or cost engineers). An estimating group develops the project estimate that defines the project's labor content. The project schedule, developed by the scheduling group, initially s h w s the construc-

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Figure 5.3 Project team structure: Field Based Project Management.

tion plan for executing the project, and when referenced against a time frame, depicts the schedule for completing the project within allowable contract time constraints. The project estimate, coupled with the project schedule, provides the necessary input to determine long-range total project manpower requirements. Once each of these head office functions i s completed, the project can be issued to the field and the field assumes full responsibility for project execution. However, the head office continuously supplies project data to the field through constant communication with key field managers. On a designxonstruct project, a continuous flow of engineering and design information i s required to support both head office estimate development, long-range scheduling and determination of manpower, and most facets of field construction and management. The impact of "in-house" engineering and design on the manpower management process i s shown in italics in Figure 5.3, and the associated information flow i s shown by dotted lines. Because the field staff i s manned with many decision makers specializing in the various manpower management tasks, the head office scheduling and

i,

Project Team Concepts

A-

5.4 TOTAL FIELD AUTONOMY

allocation functions also appear in the field. At the field office level, the project schedule is further dissected into more discrete plans and schedules for accomplishing the work. These microschedules focus on both the estimate and actual labor content (is., crew size and number of crews) of each work task. Generally, many project team members are involved in this detailed scheduling and allocation effort, with each contributing from his expertise. In this way, scheduling and manpower guidelines can be carried to the field where detailed crew planning, scheduling and allocation of manpower takes place. The work is then carried out by the crews under the direct supervision of the foremen. These functions are accomplished by the superintendents, field engineers, general foremen, foremen, and crews. The monitor function is confined primarily to the field and is the responsibility of many field decision makers, some of which appear only in the manpower management process at this stage. These persons specialize in data collection and processing (e.g., time keepers, field engineers, cost clerks, etc.). Other typical staff personnel, such as cost engineers, scheduling engineers, job superintendents, perform the necessary tasks of collecting progress and other activity data for processing. Raw data are processed through the record functions and become the basis for developing various project reports and other pertinent progress information. These reports are analyzed and evaluations regarding status are formalized. Collectively, the field project management team (i.e., the project manager, general superintendent, and cost/scheduling personnel) discuss problems revealed by the reports and implement manpower management decisions in a timely manner. Project management in the head office is informed of project status and progress through general information flows from the field. Normally, the overall project manager will enter the decision process only when extremely serious or complicated problems arise. However, most management reports are issued and approved by the head office project manager in charge of the entire project. Labor relations is an important aspect of field construction. Policies are set forth in the home office, adjusted for particular site locations, and implemented by the project team. Often, a special labor relations manager will emerge in the field organization. His responsibilities are to ensure that a high-quality labor relations program is maintained on site. He also gets involved with union related problems on behalf of the company (mainly in a closed-shop contracting environment). The Field Bascd Management approach to project management emerges in the construction environment of the large firm and is considered in more detail in Chapter 8. In certain project environments, it becomes desirable to strengthen the position of the project team by creating a team that is fully integrated and autonomous in terms of its project management approach. Although this management approach could possibly emerge in any construction environment, it is most likely to appear in the type of environment characterized by the large firm. In the large firm environment, it is often associated with

Total Field Autonomy FINANCIAL, TECHNICAL DATA,

CONTINUOUS DATA UNTIL PROJECT TEAM TRANSFER TO FIELD

H E A D OFFICE PROJECT DEFINITION

P ~ ~ ~ , " ~ , " ~ ~ ~ $ S

PLAN-Estimate refinements based on work order and trends SCHEDULE AND MANPOWER IMPACT

PLAN- Rough or detailed estimate development

PROJECT M A N A G E M E N T

SCHEDULE ALLOCATE FIELD CONSTRUCTION

I

PLAN SCHEDULE)

' Detail

crew planning and scheduling based on work order

ALLOCATE

I

MONITOR RECORD

SCIENTIFIC MANAGEMENT APPLICATION

PROJECT MANAGEMENT- FIELD OFFICE

RECORD-Generate labor data for project labor data base --

ONE- WAY FLOW O F PROJECT STATUS AND PROGRESS REPORTS TO EXECUTIVE MANAGEMENT

Figure 5.4 Project team structure: Total Field Autonomy Management (only changes from Field Based Management are shown).

design-construct projects in which management demands are significant. In many cases management pressure is brought to bear on the project team by the active participation of the client in the project management process. A common management solution to this project management environment is to assign complete responsibility to the project team and provide it with the freedom to manage the project with total autonomy. This means that the field is capable of executing all functions previously based in the head office, including engineering and design as required. The project team is enlarged at both the head office and field levels, with the head office staff transferring to the field as the field project organization increases in size and as field project execution intensifies. Without exception, lines of communication must remain between the head office and field in order to keep executive company management appraised of project status. However, the overall project manager is often an executive, thereby giving him increased authority to a& especially when he is located at the project site. In this way, the project management approach moves closer to the Total Field Autonomy concept. The project management approach indicated above is the consummate form in project team development. It is a fully integrated, balanced, and capable team organization with the flexibility to operate autonomously at

Project Team Concepts

the field site. All head office functions can be performed in the field and, with the authority of an executive project manager, total field autonomy can be achieved. In general, the manpower management process in terms of total field autonomy is similiar to the Field Based Project management approach. There are a few critical differences, which are highlighted in Figure 5.4; otherwise, the figure would be the same as Figure 5.3 (only the differences are shown in Figure 5.4). In terms of project definition in the head office, estimate development can be either rough or detailed, depending on the desires of the client. In either case, estimate refinements are made in the field based on work order estimates and cost trending deviations from initial budget estimates. Crew planning and management is impacted by work order analysis and scientific management applications. Labor data are generated in the field for a project historical data base. Lines of communication still exist between the head office and field. However, as project execution develops and project management control is transferred to the field, data flow from the head office is reduced significantly. Only summary level reports arc issued to the head office for top-level management review. All other project status and progress reports plus technical questions and considerations are handled directly with the client from the field through the executive project manager.* This management approach is referred to as the Total Field Autonomy project management approach. The construction firm most commonly associated with this project management approach is the large firm when operating in a construction management mode.

* It should be noted that engineering and design activities will continue as required to support construction in the design-construct project situation.

'

CHAPTER

6

The Project Team Structure: The Components The most fundamental and least complicated form of business structure in the construction industry is the firm whose owner operates as the president, vice-president, bookkeeper, estimator, job superintendent, and/or job foreman. In this holistic situation, there is no identifiable project team structure because one individual is the entire project team. To develop a project team structure, the firm has to expand beyond the single-man component. For this to happen the owner must delegate a portion of his responsibilities and duties to others and thereby establish one or more positions, such as bookkeepers, job superintendents or foremen. When a division of responsibilities and duties appears, an organizational structure will begin to emerge. The simplest identifiable project team structure that can emerge is that associated with independent (or virtually independent) management and organizational components that are only structured together sequentially in time. This project team structure was referred to in Chapter 5 as the Project Team Component approach to construction management. The head office and field components associated with project definition, field construction, and overall project management are the basic components in this simple organizational form for construction management. These three management components become effectively independent if heavy office commitments weaken the field supervision of projects by head office managers. Thus head office work overloads tend to separate the field construction and project management components into sequential action and reporting efforts to the detriment of the more desirable continuous and interacting relationship between project management and field construction management processes. The schematic illustration of the Project Team Component (PTC) approach to construction management (Figure 5.1) is repeated here for convenience as Figure 6.1. The construction firm most commonly identified -

~

Project Team Components M

FIELD SITE

HEAD OFFICE

PERIODIC SlTE INQUIRIES AND INSPECTIONS PROJECT SCOPE

Figure 6.1 Project Team Component (PTC) concept.

6.1 THE SMALL FIRM ENVIRONMENT

with this initial stage in the evolution of the project team organizational structure, and which is often forced to operate in a management work overload environment that produces the PTC approach, is the small firm. This chapter develops concepts relating to the PTC approach to construction management in relation to the business and management environment of the small firm and the development of its organizational structure. These are then related to manpower management functions and the roles adopted by typical small firm construction managers/supervisors. The small construction firm operates in a typically self-generated and imposed business, management, and regional environment. This imposed environment limits the growth potential of the small iirm through its own internal management capacity constraints and resistance to changes in its modus operandi. These constraints and business and management attitudes tend to limit the total construction dollar volume that the small firm can handle. The management and work environment of the small firm can be described by specific characteristics, some of which are unique to the small firm level of operation. The characteristics most typical of the small firm environment are:

The Small Firm Environment

A total construction volume less than $3 million.* A small number of permanent employees, fewer than four. General builders and highway contractors are the prevalent type. A competitive bidding environment. A local work region. A family owned or closely held operation. It should be emphasized that a construction firm operating with the management approach of the PTC mode would not necessarily have t o correlate positively with each characteristic of the small firm environment as defined above. For instance, the PTC management approach could coincide with a firm that has more than three permanent employees and is not family-owned. However, the PTC approach to project management is more likely to appear in a firm that has the foregoing characteristics. Small firms comprise the majority of construction firms in the construction industry today. Of the 800,000 businesses classified as construction firms, the vast majority are small, with 54 percent having no paid permanent employees and approximately 60 percent employing fewer than three permanent people. Since the majority of firms have fewer than three permanent employees, the number of key salaried personnel (excluding clerical staff) is minimized, thus reflecting a basic characteristic common to small business firms in all industries. In terms of construction volume, it is significant to note that in recent years approximately 4000 firms surpassed the $3 million level in total dollar receipts. Consequently, the remaining 796,000 firms with contract volumes of less than $3 million can be categorized as small. Furthermore, the firms in the low dollar volume range account for 67 percent of the total receipts, which indicates that the bulk of the construction activity is performed at the small firm level. Collectively, the firms outside this category perform a proportionately larger volume of construction work per firm than those within the small firm classification. At the small firm level the typically limited number of key personnel promotes the classical type of ownership in which the business entity is characterized by either a sole proprietorship or by a partnership with one or two individuals responsible for all managerial policies and for providing the capital necessary for operating the business. In fact, of the 800,000 contracting firms in the United States, roughly 80 percent are sole proprieforships. The sole proprietorship is the simplest form of business entity and the easiest and most inexpensive way in which to start a business. The sole proprietor enjoys many advantages accruing from organizational simplicity and the ability to exercise complete control over all managerial

* The majority of small firms fall in a range less than $1.5 million. Many of these firms are operated by an owner who is the entire project team (i.e., president, vicepresident, project manager, superintendent, foreman, etc.). The construction dollar volume chosen for the small firm represents, in our view, an upper limit ($3 million) wherein the project team would evolve to two or more permanent employees.

Project Team Components

policies. At the same firm level, a partnership enjoys many of the advantages available to the sole proprietor. Management control, however, is divided according to the degree of liability commensurate with the financial investment and responsibilities carried by each partner. This is not generally a major problem, because firms of three or more partners are rare. An additional advantage of a partnership over a sole proprietorship at the small firm level is that (by a division of responsibilities) it enables expansion, wherein a larger work load can be undertaken and be more effectively managed. Hence, partnerships will be more common in the $2 to $3 million range within the small firm category. The prime and specialty contractor classifications are the dominant construction firm types in this category. Of the two types, approximately 62 percent are specialty contractors, with the remaining 38 percent prime contractors. The single contract system is customarily employed at the small firm level of operation wherein the execution of construction is awarded to the small prime contractor. It then becomes their responsibility to deliver a completed project at the estimated bid price. The small specialty contractor is generally under contract with the prime contractor; however, circumstances will arise in which the specialty contractor will be in direct contract with the owner. When this circumstance arises, separate contracts are issued and several independent specialty contractors will work on the project simultaneously, each being responsible for a designated portion of the work. The competitive bid system is the prevailing means of obtaining work at the small firm level because of the nature of the projects available in the small firm environment. Thus the small contractor may be found engaging in either general building, both private and public, or in highway construction. Public projects may include such major highway projects as bridges, culvert construction, and roadway projects, as well as institutional projects such as educational and health care facilities. By law, most public projects stipulate the competitive bidding system, with an estimated 95 percent of all public projects being performed under this system. Other types of projects the small contractor may encounter are those for the private sector. In the private sector, projects are designed by architects to the specific requirements of a client. In an attempt to obtain the most economical price for the project, the client usually relies upon the competitive bid system. The projects the small firm actively attempts to bid for and construct rarely result in extending the firm's activities beyond its own relatively fixed geographical region. By limiting their work region to the counties or areas closest to the home office, the small firm can maintain local autonomy. This local autonomy is advantageous in that the managers will be continually aware of local labor conditions and a detailed analysis of labor availability and prevailing productivities will not be necessary. This localization attribute is a dominant characteristic of the small firm's construction environment. Thus, in the final analysis, small firms will not normally pursue work outside their region unless they plan to expand company size or are simply hungry for work. The bulk of the small firms are therefore

69

Organizational Structure of the Small Firm

6.2

ORGANIZATIONAL SUWCTURE OF THE SMALL FIRM

satisfied with that work volume which allows them to retain their local character, although at the same time this may clearly limit their potential for expansion and growth. Historically, the small prime and specialty contracting firms were founded by men who were skilled tradesmen tired of the field worker onented life style and who desired a business of their own. These men were more ambitious and professionally keener than most of their counterparts. They had a basic understanding and skill of such general management functions as estimating and project management, but rarely had any formal management training. Since the structure of the industry allows for relatively easy entry, a tradesman may become a contractor overnight. He could enter the business as a sole proprietor or could join with an associate and begin a business under a partnership. If a partnership is formed, the associate may furnish the business and management skill that the tradesman lacks and which he probably gained through formal training coupled with past experience with another construction firm. Conversely, if the tradesman sets up as a sole proprietor, he will often introduce business and management skills later through family ties by promoting a son into the business who has had formalized training from a business or construction engineering and management course taken at a local university or college. In either instance, the firm is most often expanded by owners employing members of their family. Once established as a reputable contractor, the small firm is often perpetuated by strong family ties. Specialty contractors are even more frequent at the small firm level, as indicated by previously cited statistics. The most common specialty contractor type is that in which a craftsman starts a construction firm specializing in his given area of expertise. For instance, a journeyman brick mason with foreman or general foreman experience is often able to enter into business as a masonry specialty contractor. Given favorable conditions and opportunities, the small specialty firm might gradually expand over time into a prime contracting firm. The characteristic of the small firm which has the most significant impact on the organizational structure is the limited number of key permanent employees. This staffing and management constraint generally promotes the sole proprietorship or partnership form of business entity, and when coupled with a strong family orientation, ensures that the key permanent employees are also the owners of the small firm. The owners are responsible for establishing and executing all the general business functions (i.e., ownership, investing, practicing) necessary to the operation of a construction business, as well as the other functional categories normally required for construction management: Business management. Estimating. Planning and project management. Procurement.

I 1

Project Team Components

pjstruction. Accounting and payroll.

TO execnte these functions, the owners must develop and implement all policies, including those which are applied to manpower management or which indirectly influence the manpower management process. Head office policies, whether formally stated or implied by the attitude and conversation of the managing partners, quickly permeate through the organization, and when transmitted to the field, will noticeably influence the manner by which field construction is executed. Proper administration of policy and effective execution of the general management functions requires a precise definition of areas of responsibility and lines of authority. This definition can be characterized by, and emerges through, the administrative organizational structure that is adopted for the small firm. The growth development of the small firm organizational structure is illustrated in Figures 6.2 and 6.3. Figure 6.2 shows functional groupings for typical small construction firms operating either as a sole proprietorship (Figure 6 . 2 ~ or ) as a partnership (Figure h.2b). The general management functions are grouped in a hierarchical relationship. Figure 6.3 portrays the division of authority by superimposing onto the organizational charts the various management staff, and illustrates through functional authority plots their areas of responsibility. As shown in Figure 6.3a, the sole proprietor is responsible for the business management, estimating, planning and project management, and procurement functions. He directly supervises the office support personnel,* usually not key permanent staff members, who perform the majority of the accounting and payroll functions. The sole proprietor also oversees and is responsible for all field construction on a management-by-exception basis. Figure 6.3b illustrates the most likely division of responsibility when a sole proprietor employs a second permanent staff member, such as his son. In this situation the son generally gains experience in both head office and field functions. In the head office he may initially assist in quantity takeoff and procurement, whereas in the field he may work at project management functions under the guidance of a job superintendent. With time and experience the son may assume more responsibility, and eventually, as in a partnership, the organizational structure of Figure 6 . 3 ~may emerge, in which the general management functions are distributed among the partners (Figure 6 . 3 ~ ) In . this form of business entity one partner typically performs all business management, estimating, and procurement functions. The same partner supervises the accounting and payroll functions of the office support personnel. The other partner tends to concentrate his rcsponsibility on the planning and project management functions and monitors field construction activity. Management responsibility within the firm could be further divided if the firm employed other permanent staff members. *The office support personnel staff could include a clerk, secretary, or else a professionally hired staff when required.

Organizational Structure of the Small Firm OWNERSHIP

ESTIMATING PROCUREMENT

OWNERSHIP INVESTING

PRACTICING

BUSINESS MANAGEMENT ESTIMATING PROCUREMENT

I I

PLAN.ING

1

Figure 6.2 Organizational chart for small construction firm. (a) Sole proprietor. (6) Partnership.

In the small firm the primary managers are required to perform a great variety of management functions, some of which are project oriented while others are business oriented. This management function spread is a characteristic of the small firm organizational structure and often leads to a management function overload, which may exist to the point of drastically reducing management efficiency. On the other hand, the focus of field decision makers in the small firm pertains almost exclusively t o construction management, with manpower management a primary consideration. The concentration of management functions in the small firm and the tendency to functional overloading of top management restricts growth potential. Thus both individual project size and total contract dollar volume are affected by management capacity and span of control constraints. It is

ESTIMATING

OFFICE SUPPORT PERSONNEL

'

(a)

FIELD PERSONNEL

OWNERSHIP INVESTING PRACTICING SOLE PROPRIETOR BUSINESS MANAGEMENT ESTIMATING PROCUREMENT PLANNING

CONSTRUCTION FIELD PERSONNEL fb)

INVESTING PRACTICING

I BUSINESS MANAGEMENT ESTIMATING PROCUREMENT

PLANNING

ACCOUNTING

CONSTRUCTION FIELD PERSONNEL

fcJ

Figore 6.3 Management responsibility for small construction firm. (a) Sole proprietor. (b)Transition. (c) Partnership.

The Project Team

6.3

THE PROJECT TEAM

difficult for the small contractor to escape these constraints, because on the one hand he must maintain limited overhead in order to make a profit, and on the other hand it is difficult to ensure continuity of work volume in the highly competitive construction environment of the small firm. To manage an individual project, the firm's principal decision makers must be assembled into a management team suitable for executing all construction management functions, which at the same time reflects the company's organizational structure. Figure 6.4 shows a typical project team organization for a small firm having at least two permanent head office decision makers. If only one permanent man is operating the business, the estimator would not appear as a separate decision maker, and the project manager would assume the dual responsibilities of the estimating and project management functions. The job superintendent and foreman have a significant impact on the operation of the business because, as field managers, they are completely responsible for on-site construction management. In the sole proprietorship small firm, especially in cases where the sole proprietor must spend considerable effort on procurement and business matters, these field personnel assume a project management role similar to that of the Project Team Component approach outlined in Chapter 5. However, the job superintendents and foremen are generally not classified as permanent employees of the small firm because their explicit affiliation with the firm potentially terminates at the end of each payroll period.' Furthermore, at this level these employees rarely have any financial stake in the operation of the company. Provided that the firm can maintain

OFFICE SUPPORT

Figure 6.4

Typical project team organization in small construction firm.

*Foremen are rarely classified as permanent company personnel at the small iirm level.

Prnject Team Components

construction volume through a succession of projects, a nucleus of superintendents and foremen can be maintained that are loyal to the small firm. In this way the owners attempt to build up a staff of reliable field personnel. A small specialty contractor at this level rarely employs a superintendent and relies heavily on foremen for field management. As mentioned previously, the project organization must reflect the organizational structure of the small firm. This requirement is illustrated by mapping onto the organizational chart of Figure 6.2 the project team members of Figure 6.4; the resulting chart is then used to define responsibilities, as shown in Figure 6.5. Typical job descriptions of the project manager, estimator, and field

I

OWNER- MANAGER OWNERSHIP INVESTING PRACTICING ESTIMATING PROCUREMENT PLANNING PROJECT MANAGEMENT

I

1 I

I

I

I

OFFICF

ACCOUNTING PAYROLL CONSTRUCTION

OFFICE PARTNER

I

INVESTING PRACTICING BUSINESS MANAGEMENT ESTIMATING PROCUREMENT

----------

I

FIELD PARTNER PROJECT MANAGER OWNERSHIP INVESTING PRACTICING PLANNING PROJECT MANAGEMENT

OFFICE -SUPPORT PERSONNEL

rn

CONSTRUCTION

1

I

I JOB S U P E R I N T E N D E N I

ACCOUNTING PAYROLL

CONSTRUCTION

CONSTRUCTION

Figure 6.5 Typical management responsibility in small construction firm. (a) Sole proprietor. (b) Partnership.

The Project Team

superintendent construction personnel, as defined by the Associated General Contractors of Chicago," are given in Table 6.1. Only job descriptions for those staff types who appear at the small firm level have been quoted. Other personnel described in the AGC Handbook, such as the expediter, mechanical superintendent, scheduling engineer, and timekeeper, are excluded in this chapter because these classifications do not appear at the small firm level. The functions normally performed by these individuals would be added to those handled by the project manager, job superintendent, and estimator at the small firm level. For example, the estimator would probably assume expediting responsibilities. The job descriptions of Table 6.1 indicate broadly the management functions performed by construction personnel at the small firm level. Variations in job responsibilities will occur from firm to firm, and even from project to project, depending upon the nature and capabilities of individual men and management styles. As indicated in Table 6.1, the project manager's job description covers both that of the head office man-

TABLE 6.1 JOB DESCRIPTION FOR TYPICAL CONSTRUCTION PERSONNEL

Project Manager A . General Functions

The project manager in the construction industry is usually an "inside" and "outside" man. The position may vary considerably from company to company. The project manager in some companies may he an estimator, and expediter and even handle some duties normally done by the job superintendent, while with other companies he may merely supervise superintendents. B.

Detailed Functions

1.

May procure the invitation to hid on jobs May, when working as an estimamator, prepare bids May handle the legal requirements for a contract May negotiate the specialty contractor's arrangements and agreements Set up completion schedules by hargraph or Critical Path Method Supervise subcontractors and coordinate their material deliveries Arrange for sufficient manpower for the project Supervise superintendents on the job-"walk the job" each day to see progress being made, and during this time review the work with a superintendent

2. 3. 4.

5.

6.

7.

8.

9.

10. 11.

12. 13.

14.

Control the movement of men from one job to another Arrange for permits from the city, country, etc. Hire and fire superintendents, foremen, engineers and other personnel under his supervision Set up occupancy dates for buildings Act as public relations representative Coordinate with architect and owner requested revisions or errors found in drawings

* "1970 Management in the Construction Industry-Handbook for the Construction Manager," The Builders' Association of Chicago, Inc., North LaSalle Street, Chicago, Illinois 60601.

TABLE 6.1 (continued) Field Superintendent A.

General Functions

Builds the building. Manages men and materials on the job site so that the project is built for profit. Coordinates schedules so that men and materials are available to promote efficient erection of the building at a profit level. B.

Detailed Functions

1. "Learns the building"-studies plans and specifications so that he can plan the work to be accomplished 2. Tries to anticipate problems 3. Studies the costs 4. Arranges scheduling and manufacture of building parts of components 5. Coordinates building when the manufactured items will be available for the building 6. Does survey and layout work or supervises technical or field engineer who does this 7. Keeps constant check on all trades, overseeing workmanship and materials 8. Hires and fires workmen 9. Supplies information to Accounting Department so that records of costs can be maintained

Supervises men directly or indirectly (i.e., through the foreman) May be responsible for deliveries Is responsible for drawings and seeing that drawings are made of changes or incomplete items Arranges for plan changes as needed May be responsible for written schedules or physical schedules Does on-the-spot estimating (material or labor) May price out extra items or charges Does limited buying (supplies and items missed by the purchasing department) Makes daily safety inspections May record daily field activities in a log

Estimator A . General Functions

An estimator makes as close an estimate as possible of what the costs will be. In order to do so, he must itemize all of the building materials, calculate labor costs for the entire project-the cost estimate may also include a percentage for profit, though this may be done with or by top management B. 1.

2. 3. 4.

5.

Detailed Functions

Mail and/or telephone bid proposals to subcontractors Follow up with subcontractors on submission of their bids Review bid with subcontractors Prior to bid, inspect job site to determine access and that the land is the same as on the plans; look for water conditions and other problems which might arise Analyze plans and specifications (i.e., "learn the job")

6 . Make a "take-off" for each type of work to be done by general contractor forces 7. Does "take-off" for subcontractors when necessary 8. May sit in on owner, architect and contractor conferences 9. May check on other estimator's work or have his work checked by another estimator 10. Price the quantity "take-offs" 1 1. Read prints, noting discrepancies

Manpower Management Functions a1 the Small Firm Level TABLE 6.1

(continued)

12. Make itemized lists of prices for materials 13. Review and preview subcontractors' bids 14. In some companies purchases steel, lumber and all other materials necessary for the job IS. Compute a percentage for overhead and profit, which would be added to estimated cost 16. Arrive at final bid price or cost price 17. Prepare change order (estimates cost of changes) as needed or

18. 19. 20. 21.

required-if major item and not handled by field personnel Expedite distribution of plans, including general and mechanical Serve in quality control capacity, due to position in purchasing and plan review Make bargraphs, network or C.P.M. for scheduling Make cost breakdown of work performed by company forces for cost control purposes

Source: "1970 Management in the Construction Industry-Handbook for the

Construction Manager," The Builders' Association of Chicago, Inc., North LaSalle Street, Chicago, Illinois 60601.

6.4 MANPOWER MANAGEMENT FUNCTIONS AT THE SMALL FIRM LEVEL

ager in the Project Team Component approach and that of the Traveling Project Manager. The distinction will lie in the attitude of the project manager and in his performance of the detailed functions; thus if the project manager actively performs function 8 (Supervise superintendents on the job--"walks the job" each day), then he will be acting as a Traveling Project Manager. If, however, through pressure of work or inclination, he is mainly an "inside man" and visits the job only on a management-byexception basis, then the PTC management approach will naturally result. In order to look more closely at the modus operandi of the small firm and the roles individuals play in manpower management it is necessary to identify the manpower management functions relevant to the environment and operation of the small firm. The manpower management functions considered by the authors relevant to the modus operandi of the small firm are shown in Figure 6.6. These thirty-five manpower management functions have been extracted from the forty-six ideal project manpower management functions of Figure 2.7 and are presented in Figure 6.6 in the same relative tabular positions. The small contractor does not consider or execute all the ideal project manpower management functions.* For instance, the work package approach to planning and estimating is not commonly applied as a manage-

* The forty-six labor management functions introduced in Chapter 2 and described in the Appendix are considered by the authors to be a basic reference for the description and understanding of project manpower management approaches in the construction industry. Some of these functions are fundamental to any approach, but others are relevant only to specific management techniques, scale of operations, and management attitudes. Still other functions are relevant to most management approaches but may be handled informally in an ad hoc or even subconscious manner by some managers and firms, whereas other managers and firms may consider them important enough for formal consideration. Thus not all the forty-six functions are considered relevant to the small firm environment and PTC management approach.

PLAN P

SCHEDULE S

1 PI CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

2

P2 AOTIVITY DEFINITION

ALLOCATE A

S2 ESTABLISH CONSTRUCTION SCHEDULE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

3 P3 QUANTITY TAKEOFF 4 P4 ESTIMATE LABOR CONTENT 5

6 P6 DETAILED FIELD QUANTITY TAKE-OFF 7 P7 ESTABLISH CREW REQUIREMENTS 8 P8 PLAN WORKFACE LAYOUT

S5 DEFINE CURRENT PROJECT STATUS S6 REVISE CONSTRUCTION SCHEDULE S7 SCHEDULE PROJECT CREWS

A5 ADJUST CREWS A6 ASSIGN INDIVIDUAL WORK TASKS

Figure 6.6

WORK W

MONITOR M

W2 PREJOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

W3 WORKFORCE MANAGEMENT W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS WS ESTABLISH FIELD CREWS

M5 LABOR ANALYSIS

W1 RELEASE STAFF TO PROJECT

W6 SOLVE HUMAN RELATIONS PROBLEMS W7 INrrIATE INDIVIDUAL WORK TASKS WR EXECUTE WORK

Manpower Management Function chart for small firm.

RECORD R R1 HISTORICAL DATA BASE R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

M6 WORK PROGRESS

R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

M8 FIELD INSPECTION

Manpower Management Functions at the Small Firm Level

79

ment technique to labor determination and management problems by the small contractor. The type of work normally handled at the small firm level is performed using well-tried construction methods with fixed crew sizes and known production rates. In addition, the work content of each portion of the project is usually fairly closely known before construction begins so that field based planning and estimating is a check on the bid cstimate. The work package approach to field planning and estimating is generally used on large complex engineering projects when none of the above conditions hold. Thus Figure 6.6 does not contain those management functions (i.e., PS, 54, and R4) relevant to the work package approach. Similarly, the small firm handles projects with small work forces in areas where the local labor pools are generally adequate for their needs. The small firm therefore rarely requires the specific determination of trade man-hour and manpower profiles (S3 and A3 functions). Field activity is simply visually assessed and the consequential assessment of impacts on project completion rarely justifies any significant effort or the preparation and consideration of special project forecasts and field activity analysis (M3 and M4 functions). This is understandable because the nature of the small firm's project environment hardly demands such complex projects with significantly large management staffing requirements and project labor forces. The small contractor's portfolio of projects never falls within this category. At the small firm level, a number of the manpower management functions (about one third) must be formally processed either because of their importance to the contracting process or from the legal requirements arising out of the employment of labor. Usually, the performance of these functions leads to the preparation of special documents and files. Thus the estimating and planning process for a project (involving the performance of functions P I , P2, P3, P4, S1, and 52) leads to the preparation of quantity sheets, estimate summaries, and construction schedules. The techniques used and the manner in which these estimating functions are performed, together with their supporting documents and policies, was considered in Section 3.4. In the field, the monitoring and recording of construction effort (involving the performance of functions MS, M6, M7, M8, R6, and R7) leads to the preparation of time cards, quantities-in-place, and daily construction reports and the assessment of general project progress and labor productivity. Finally, the project management process (involving the performance of functions M I , M2, R2, R3, and R7) generates payroll, recording of earnings and employment, cost reports, and similar project management reports. However, most manpower management functions, at the small firm level, are performed, as the occasion demands, in an ad hoc manner by project team staff relying on their past experience and skill. Rarely does the performance of such field functions require documentation. Thus the day-to-day direction and management of the construction crew, the general planning and scheduling of field construction, and field

Project Team Components

6.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT

inspections focusing on work progress and labor productivity are vital but often undocumented field management functions. Although the quality of the performance of these functions depends upon the skill and experience of the superintendent and foreman concerned, it is important for a proper understanding of the construction management process that the management approach used by these individuals and their decision rationales be examined. At the small firm level the personnel responsible for, and involved in, the performance of manpower management functions are the project manager, estimator, and office support personnel (located in the head office), and the superintendent, foremen, and crews (located in the field). The distribution and allocation of manpower management functions to an individual project team member can be portrayed by a functional plot. As mentioned in Chapter 4, the basis for illustrating the role of the project team member is his involvement in the basic manpower management functions. If the individual performs one or more of the work tasks required by a function, then the identifying name or label for the function is included in the functional plot for the individual. Figure 6.7 shows such a division of functions to the various project team members as plotted on the Manpower Management Function (MMF) chart. In some cases several staff members share performance of a function. For these cases the functional plots for each person involved are shown as embracing only a portion of the relevant functions. It is not surprising to see that the Project Manager (PM) and Job Superintendent perform the majority of the manpower management functions. This agrees with Figure 6.5b in that these managers are shown as having responsibilities over the major construction management functions (i.e., planning, project management, and field construction), where most manpower focused functions of the small firm are performed. The general form and distribution of the functional plots clearly portrays the hierarchical nature of the project team structure and corresponds to the organizational structure of Figure 6.5b. The estimator and office support personnel perform staff functions for the project manager as indicated by the nested functional plots of each relevant to that for the project manager. Similarly, the obvious line structure relationship that exists between the superintendent, foreman, and crew is evident in the overlying and embracing form of their functional plots. Finally, as shown in Figure 6.7, clear distinction between head office and field oriented functions is suggested by the superintendent's and project manager's functional plots. All functions above the superintendent plot are head office functions. Figure 6.7 represents only an ideal division of management functions describing the general duties and tasks of each project team member. The actual MMF plot for staff of a specific small firm would reflect company size, capabilities of individuals, and so on. For example, if the MMF plot portrayed the project team roles of a sole proprietorship with only one office manager, the project manager would assume those functions normally assigned to the estimator. The estimator would not appear o n the MMF

PLAN P

SCHEDULE S

Figore 6.7

ALLOCATE A

WORK W

MONITOR M

Ideal division of manpower management functions in PTC managementapproach.

RECORD R

Project Team Components

plot. On smaller projects, the estimator and project manager would probably be the same employee regardless of company size. Similarly, a key foreman or the project manager may assume the superintendent's functions on small projects. The manpower management function plot in Figure 6.7 can be emphasized by including brief scope statementiof the duties or tasks (extracted from the Appendix) involved in function performance as applied by the small f i r m . this way, the MMF plot fbr each project team member becomes a basic job description and serves as an illustration of their manpower management focus at the small firm level. As an example, Figure 6.8 is a MMF plot which provides a brief description of the duties or tasks required to perform each function. When referenced against the project team member plots, Figure 6.8 provides a basic job description of each team member. Notice in Figure 6.8 that when two plots embrace one function, such as the REVISING OF THE CONSTRUCTION SCHEDULE (S6), different duties arise for each team member. In this case, the project manager updates the bar chart schedule while the superintendent reschedules activities in accordance with the updated schedule. When two plots embrace one function and only one duty is described, then both team members perform the same duty. The Estimator, according to the AGC function descriptions of Table 6.1, could become involved with head office scheduling (make bar graphs, network, or CPM for scheduling) and recording (make breakdown of work performed by company forces for cost control purposes). If these functions are added to the estimator manpower management scope of responsibilities, the MMF plot would show the new division of functions as depicted in Figure 6.9. In this case, thc estimator shares scheduling responsibility with the PM and recording responsibility with the office support personnel. The normal functional plot of the estimator assumed in this section is shown in Figures 6.7 and 6.8. A detailed discussion of his role in manpower management at the small firm level is presented in Section 3.4 and covers the estimating process. The role of the project manager as expressed by his MMF plot (Figures 6.7 and 6.8) when compared with his project team responsibilities (Figure 6.4) indicates that he is primarily involved with the performance of those functions associated with project management. In addition, the PM is a company partner and has other general company functions that he must perform (Figure 6.5b). In his role in manpower management, the PM develops construction schedules (S1 and S2), assigns and releases staff to the project ( A l , A2, and W l ) , and reviews project status and performance (MI, M2, and S5), from which he updates the construction schedule (S6). The project manager interfaces with the superintendent in those areas that provide the requisite information for project status and performance evaluations. Thus the PM shares function performance with the superintendent when verifying quantities placed to date and measuring field progress in terms -

~

PLAN - P

SCHEDULE-S

P1 EVALUATE: SITE CONDITIONS

S1 ESTABLISH: ACTIVITIES AND SEOUENCE

ALLOCATE - A

MONITOR- M

WORK- W

A1 ASSIGN TO JOB: ESTIMATOR OFFICE STAFF

W1 RELEASE TO JOB: ESTIMATOR OFFICE STAFF SUPERINTENDENT

M1 DECIDE: COLLECTIVE ACTION ANALYSE: LABOR COST REPORT

/ ~1 FILE: LABOR U N l T COST DATA

PROJECT STATUS IDENTIFY: PROJECT ACTIVITIES SUBCONTRACTS

%SIGN TO JOB: SUPERINTENDENT

~VELOP: ACTIVITY BAR CHART SCHEDULE

P3 PERFORM: QUANTITY CALCULATIONS AND RECORD

I"

I

PROJECT MANAGER

ESTIMATOR EVALUATE: LABOR UNlT COSTS; UNIQUE CONSTRUCTION METHODS: TOTAL COSTS

I

ARGUE: CREW CHANGES

~

A6 ASSIGN: lNDlVlDUALS TO WORK TASKS

UPDATE: BAR CHART SCHEDULE RESCHEDULES: ACTIVITIES

)

1

ESTABLISH: CONSTRUCTION METHOD; DURATIONS; CREW SlZE

S7 DETERMINE: CREW START DATES

,

SUPERINTENDENT

I I II

ADVISE AND CAUTION: INDIVIDUAL'S PROBLEMS HANDLE: INDIVIDUAL'S CONFLICT

FOREMAN

W7 BRIEF AND DIRECT: CREW MEMBER ON WORK ROLE

ARGUE: CREW SlZE AND MIX W8 ACCOMPLISH: WORK CREW MEMBERS

LOCATE: ERUIPMENT MATERIAL SUPPLY LOCATE: MEN'S POSITIONS

I

PROCESS: LABOR

M7 INSPECT: D A I L Y WORK DETERMINES: HOURS WORKED

R6 DOCUMENTS: RUANTITIES PLACED DOCUMENTS: D A I L Y FIELD ACTIVITY

R7 REVIEWS: HOURS ASSIGNS: COST

)(

FILLS - - - IN HOURS ON TIME CARDS

1 I

INSPECT: WORK QUALITY IN CREW

Figure 6.8

OFFICE SUPPORT PERSONNEL

LMLZ EVALUATES: MATERIAL IN PLACE INSPECTS: D A I L Y FIELD ACTIVITY

\

I

TOTAL PROJECT COSTS

ANALYSIS: ACTUAL VERSUS ESTIMATED UNlT COSTS

ASSIGN: PERSONNEL TO CREW

(-;

:

R3 PROCESS PAYROLL AND RECORDS

W5 ASSIGN: FOREMAN S E T UP: C REW S

PRODUCTIVE C REW S

O

C MPUTE HISTORICAL LABOR UNlT COST DATA

HIREIFIREIREDI RECT: CRAFT PERSONNEL

ENFORCE: JURISDICTIONAL AREAS PROPER SKILL LEVELS S5 EVALUATE: ACTIVITY STATUS

DETERMINE: ACTIVITY CONTENT; MATERIAL ERUIPMENT ADVISE: FIELD CONDITIONS-

PREPARE:LABO R COST REPORTS

~N~ERFACE UNIONS : SUBCONTRACTORS

Manpower management job description plots for PTC members.

CHECK: QUALITY AND WORKER OUTPUT

J

Figure 6.9 Division of manpower management functions in PTC management approach with estimator assuming greater project responsibility.

of completed components of the project. This information plus labor cost data enables the PM to analyze actual labor cost performance against the estimate. The office support personnel, as shown in Figure 6.8, are involved with payroll and cost accounting activities (R3) and also the collecting and filing of historical labor unit cost data (R1 and R2). This work might be done by a professional but is normally performed by a clerk. At the field level, the Superintendent is associated with the general planning, scheduling, and monitoring of field work, which is considered his normal role. Specifically, in terms of his MMF plot (Figures 6.7 and 6.8), the superintendent performs crew planning and management functions (P6, P7, P8, 57, A5, W3, W4, W5, and W6) and field monitoring of crew performance and activity progress (M6, M7, M8, R6, and R7). When performing these functions the superintendent becomes the key

Management Roles in Manpower Management

85

man in the construction process of the small firm. In this position, the superintendent is normally a highly motivated individual who readily accepts the challenge of the job, as often evidenced by the long hours he works. Because he is responsible for field construction (Figure 6.5b) he must be technically competent in all facets of construction and has probably specialized in one facet, such as carpentry work. The superintendent must be a leader and have the ability to draw out the full potential of his personnel through a knowledge of their individual strengths. Hc must respect the ability of his foremen and recognize their authority. In his management role, the superintendent advises and instructs his foremen and maintains discipline, because he is the final arbitrator with respect to hiring, firing, and the solving of an individual's problems. Thus he must be well versed in the area of human relations management. In addition, the superintendent, in his manpower management role, is involved with industrial relations. H e must anticipate, ward off, or maintain a proper company attitude to jurisdictional areas and restrictive work practices. The foreman position is heavily oriented toward the crew and individual work levels in the field. The day-to-day direction of the construction crew is considered the normal role of the foreman. The Foreman's role, as depicted on his MMF plot (Figures 6.7 and 6 . 8 ) , is heavily oriented toward those crew planning and management aspects that focus on close contact with individual crew members. His field monitoring focus relates to the day-today evaluation of individual crew member performance and output achieved (M7, M8, and R7). In his role in manpower management, the foreman has to be most knowledgeable in the area of human relations because of his daily, often hourly, contact with the individuals he manages. In this position, he must have a management style that will command respect through effective leadership, communications, and good relations with his people. The foreman must have the ability to handle men insofar as he must continuously be alert for and sensitive to an individual's personal problems. He must enter into and resolve conflict problems between individual crew members and in extreme cases initiate such drastic action as the transferral or firing of individuals. As a manager the foreman must have a sound technical and construction background in his area plus an understanding of related areas. He must be able to perform specific work tasks himself as well as direct and train individuals in the proper performance of those work tasks. The foreman must possess leadership qualities and if he is in a closed shop construction environment, have extensive knowledge of jurisdictional areas and restrictive work practices. A general discussion of project manpower management decision processes of the small firm is left to Chapter 15. The specific manner in which project team members of the small firm perform their decision processes is left to the companion volume in this series.

CHAPTER

7

The Project Team Structure: The Traveling Project Manager

7.1 THE MEDIUM-SIZED FIRM ENVIRONMENT

The Traveling Project Manager concept of project management emerges in a construction environment typically characterized by the contractor handling a portfolio of projects which vary considerably in total dollar magnitude and complexity. Construction companies in this environment often carry as many as twenty different projects on the books at any one time, depending on the size of each project. Individual projects can vary from $1 million to $10 to $20 million in sue. To manage the increased construction volume and the broad gamut of project size and complexity, the firm must deviate from the organizational composition and approach to project staffing of the small firm. The firm must increase the number of responsible decision makers and expand their authority and focus, and yet develop a management organizational structure wherein top management does not lose contact with field operations. When assembling these decision makers into a project team structure, a project decision maker emerges whose focus of responsibility clearly links the head office and field project team components. This individual, as previously suggested, is identified as the Traveling Project Manager. The schematic illustration of the Traveling Project Manager approach to construction management (Figure 5.2) is reproduced here for convenience as Figure 7.1. The Traveling Project Manager first emerges as a distinct member of the construction management hierarchy in the construction firm that will be classified as the medium-sized firm. The following sections of this chapter develop the Traveling Project Manager approach to construction management in relation to the business and management environment of the medium-sized firm and the development of its organizational structure. These are then related to the manpower management roles adopted by the typical medium-sized firm. The construction environment of the medium-sized firm as compared to the small firm changes radically in some aspects and not so radically in others. Unlike the small firm, the medium-sized firm performs its con-

The Traveling Project Manager

struction activity in an environment that is less congested in terms of the total number of firms. This suggests that there are fewer firms competing for the same construction dollars and that each project demands a higher level of technical competence, capitalization, and management effort. In addition, the usual broad range of project size and complexity in the firm's portfolio implies that there are fewer projects available for the medium-sized contractor. Therefore, a stringently competitive atmosphere will prevail in this environment. Finally, whereas the total construction volume of the small firm rarely exceeds the $3 million range, the total yearly construction volume of a medium-sized firm could easily vary from $4 million to $50 million or more, depending upon the availability of financial resources and the nature and mix of their project portfolio.* The medium-sized firms' segment of the construction industry consists of approximately 2900 firms with a range of permanent key salaried personnel for each firm between 20 and 200 employees. A significant percentage of these key managers are affiliated with the field organization as either superintendents or other supporting personnel. Included in the foregoing figures are general foremen and/or foremen, who maintain a continuous working relationship with a company, but in actuality are not permanent salaried personnel. The remaining employees are office managers, of which some are directly associated with the ownership aspects of the firm. The corporate form of business entity emerges as a viable means of company ownership because of the significant capital investment and subsequent business volume generated by the medium-sized firm. The corporation, as a form of business operation, is mainly utilized for tax benefits and protection against personal loss of material items owned by the construction company's principal stockholders (i.e., owners). The firm's capital requirements rarely extend beyond those generated via borrowing, personal investment, or company earnings. Therefore, stock issues are available only to the owners or other company employees in a profit sharing mode. The medium-sized firm environment does host a number of partnerships but fewer sole proprietorships. The relative mix of prime contractors to specialty contractors shifts toward the prime contractor as the total volume level expands in the medium-sized firm environment. For example, there are as many specialty contractors in the $3 to $15 million range as there are prime contractors. As the total volumc per firm increases beyond $15 million, the prime contractor becomes the prevalent type. This shift toward the prime contracting firm introduces an interesting development which emerges in the medium-sized firm environment. The prime contractor will rely heavily on specialty contractors whose construction volume is noticeably less than their own. This means that a medium-s&ed prime contractor

* In terms of total dollar volume, the majority of medium-sized firms would fall in the $3 million LO $15 million range. The upper limit of $50 million .would indicate that many firms with substantial dollar volumes operate under the Traveling Project Manager approach to construction management.

The Medium-sized Firm Environment

could employ either a medium-sized specialty contractor or a specialty contractor operating as a small firm. It is quite common to have a small and medium-sized contractor operating on the same project. The advent of this characteristic in the construction industry is the direct result of the industry's mode of operation, whereby the prime contractor must often rely on a specialty contractor to perform a specialized segment of the work. This is often the result of the prime contractor's lack of specified talents in certain areas of construction, as well as difficulty in hiring the highest-quality workers in those areas typically subcontracted (e.g., mechanical, plumbing, etc.). Thus the medium-sized firm relies extensively on subcontractors, many of which are small firms. Medium-sized firms secure a percentage of their projects via competitive bidding and a percentage through owner negotiation with low bidders. The firms whose project capacity gravitates toward the $4 to $15 million size most likely will encounter the public competitive bid-type project,* while those firms whose project capacity is $10 to $20 million and up will encounter both the competitive bid and the low bid negotiation by owner types of situation,? with a small percentage of the work available on a cost plus fee basis. As with the small firm, the more predominant types of construction that prevail in the medium-sized firm range are general building and heavy or highway construction. The principal types, for example, are educational facilities, low-rise commercial office or apartment buildings, highway paving and bridge work, tunnels, and earth dams. Many of these projects are government sponsored and therefore require the competitive bidding format. Alternatively, in the medium-sized firm environment a significant percentage of the projects encountered are privately sponsored, in which case the client can more often rely on low bid negotiation, whereby the initial number of bidders is limited at the client's option. From a select List of bidders, the client will choose the lowest bid submitted. Finally, industrial and high-rise construction will appear in the medium-sized firm category. The historical development of the medium-sized firm is often simply an extension of the small firm's history. Strong family ties often provided both the manpower and continuity which allowed the firm to survive as well as expand through the years. More often, the medium-sized firm commenced with two partners and as it grew and expanded in size from small to medium, the partners' families entered the business, which ultimately perpetuated the firm's name. The family association provided the manpower, with additional partners often providing the necessary capital investment required to expand the firm's dollar volume level and management expertise to cope with a more complex business environment. The entire growth pattern, as described, applies equally to both the prime and specialty contractor type throughout this range in contracting volume. To maintain or increase its dollar volume level, the medium-sized firm must expand its work region beyond that locality that previously supplied

* Projects open to all qualified bidders who decide to submit a bid. P Projects for which only a limited number of bids are solicited from companies selected by the client.

T h e Traveling Project Manager

7.2

ORGANIZATIONAL STRUCTURE OF THE MEDIUM-SIZED FIRM

the majority of their work load. This expansion will either increase the size of the home office facility or introduce the concept of the regional branch office(s). Dissecting the work area into smaller regional areas through branch offices benefits the contractor by two direct means: (1) the branch office promotes the Traveling Project Manager concept by ensuring that the project manager maintains close proximity to the active projects which are his responsibility in that region; and (2) the regional office promotes the localization concept as described for the small firm in Section 6.1. It must be noted that the medium-sized contractor's work region is not so immense that localization no longer prevails. If the work region does expand significantly, the benefits incurred through localization decrease proportionately; that is, the degree of construction reconnaissance necessary will increase proportionately in relation to the contractor's lack of familiarity with the work environment. Hence the regional office concept burgeons in an attempt to reestablish and reaffirm the localization attribute and maintain the Traveling Project Manager approach. The Traveling Project Manager concept is a common and flexible management approach in the construction industry. It is particularly appealing, and satisfying, to company executives who have come up through the field and who have helped carry the firm into the medium-sized firm volume of business, because it allows them, if they wish, to maintain contact with the field. Because the TPM approach is flexible, it can be applied to a broad spectrum of project types, varying considerably in both dollar size and complexity. The organizational structure of the medium-sized firm is a reflection of the TPM concept and the project characteristics of the environment in which this concept emerges. The organizational structure expands to cope with increasing company personnel required to manage the contract volume generated by the medium-sized firm. Management responsibility is dispersed among more decision managers. As a result, the general management functions are more specifically differentiated, so that areas of responsibility can be more efficiently assigned. The administrative and functional relationships between these groups are structured to promote the TPM concept by distinguishing between project oriented functions and functions required to operate a business. Management responsibility at both the company level and project level will be assigned according to this distinction. Consequently, as construction volume grows, executive management will be divested of major project responsibility, which is then delegated to the project manager. The company organization structure of the medium-sized firm is characterized by two typical organization charts, as shown in Figure 7.2. Each chart shows the major functional groups, and contrary to the small firm's organizational approach, the business management, planning and project management, and estimating and procurement areas emerge as separate functional entities. This organizational development is significant because it provides the framework for distinguishing between project oriented functions (primarily project management, planning, estimating, and pro-

Organizational Structure of the Medium-sized Finn

INVESTING

PAYROLL

MANAGEMENT

PROCUREMENT

INVESTING

ACCOUNTING

PROCUREMENT

PLANNING A N D PROJECT

Figure 7.2 Typical administrative organizational charts for rnedum-sized firm employing the TPM management concept.

curement) and the remaining functions, which are oriented toward operating a business.* As illustrated in Figure 7.2, the business management function emerges at the top of the organization chart and is administratively linked to the project functions while remaining functionally isolated. The organization structure as described by these charts further pro-

* Accounting and payroll functions serve a dual role, because they service specific projects while maintaining a business focus.

The Traveling Project Manager

motes the TPM concept because the planning and project management functions become distinguishable areas and can be assigned solely to the project manager. However, the administrative relationship between the planning and project management functions and the other major management functions may vary depending on individual company size. A company with relatively few head office staff personnel (e.g., 7 ) may rely on the type of organization presented in Figure 7.2a. In this case, top-level executive management can maintain a direct reporting line with the project manager because of the direct link to the business management function from planning and project management. This intimate link is important in the medium-sized firm with a limited number of head office staff. If the medium-sized firm employs a significant home office staff (e.g., 2 0 ) , the organization chart in Figure 7.2b could emerge as being better suited to their needs. Direct reporting from planning and project management to top-level management is no longer desirable because too many staff personnel would be reporting to the executive level. T o circumvent this, reporting from project management is funneled through estimating and procurement, in effect limiting the reporting to top management by rcporting through a second-level executive type. Management responsibility is introduced to the organization chart by plotting onto the chart the areas of responsibility assigned to the firm's executives, office support, and field staff. If this is done for the organizational structure of the medium-sized firm, as shown in Figure 7.2b, the result is as shown in Figure 7.3.* In the medium-sized firm, the executive responsibility moves toward the top of the organization chart and other office staff members are assigned broader responsibilities. For example, in Figure 7.3a, the planning and project management functions are shared by the vice-president and other ofice personnel, signifying that the vicepresident is the project manager on a selected number of projects. The vice-president is assisted not only with the project management functions but also with the estimating and procurement functions. He assumes minimal responsibility for the business management function. Conversely, in Figure 7.3b, the vice-president is portrayed as assuming a larger segment of the estimating responsibility. Total responsibility for the planning and project management functions is shifted to other head office staff, as described in Figure 7.3b. This is the ideal division of management responsibility for the TPM concept, with the project manager assuming the Traveling Project Manager role and responsibility for the planning and project management functions. The salient characteristic of these plots is the shift of project management responsibility to staff other than the executives of the medium-sized firm. This divests the president from direct daily project involvement, which means that his primary focus can be business management oriented (i.e., running the business operation). Entering the management picture are decision makers whose focus is limited to specific management functions, such as an office manager executing estimating and procurement functions only. This increase in man-

* Similar plots can be developed from Figure 7 . 2 ~ .

OWNERSHIP INVEST1NG PRACTICING SECRETARY-, TREASURER

OFFICE

I

\

/PRESIDENT

ACCOUNTING

OFFICE \

...A",LCPRFSI~FN-

ESTIMATING PROCUREMENT

I

MANAGEMENT

I

OFFICE STAFF

/ TPM

OWNERSHIP INVESTING PRACTICING SECRETARYTREASURER

CONSTRUCTION

fbJ

Figure 7.3 Management responsibility plot. (a) Vice-president has a minimal executive management role and major responsibility for estimating, procurement, and project management. ( 6 ) Vice-president and secretary-treasurer move into executive management; project management is shifted to project manager.

The Traveling Project Manager

7.3

THE PROJECT TEAM

agement staffing is directly attributable to the larger construction volume generated by a larger and more complex project environment. In this environment the executives cannot remain the principal decision makers in the construction management cycle, but must incorporate other managers into the decision process. In terms of manpower management, personnel other than executive management are delegated primary areas of responsibility. Administrative functions consume a greater portion of higher-level management's daily responsibilities, thus creating functions which are more permanent in nature. In general, the function of each decision maker in the medium-sized firm begins to evolve toward a more specialized focus. The organizational chart dictates the medium-sized firm's basic approach to operating a contracting business by defining both functional responsibility and the authoritative structure of the firm. To manage a specific project, the company must formulate a project team structure which is compatible with the organizational structure and management responsibility, as described in Figures 7.2 and 7.3. The project team defines the structure by which a project will be administered and the decision maker responsible for executing all project oriented functions. Each function delineated on the organization chart will be the responsibility of one or more of the project team members. Typical project team organizations are shown in Figure 7.4. Because the size and structure of the project team varies with the individual project size and complexity, two examples are presented in Figure 7.4. The project team in Figure 7 . 4 ~would be selected for smaller projects wherein the management functions could be performed by a minimum number of staff. These projects are the more conventional projects in terms of complexity and dollar size (e.g., small office building in the $5 to $9 million range). Alternatively, on larger projects ($10 to $20 million) of greater complexity, the number of decision makers expands and a project team similar to Figure 7.46 emerges. In this figure, the estimator is supported by a specialist in quantity surveying. Furthermore, an expediter is assigned to handle the procurement activities. The field staff expands significantly with the introduction of a field engineer and timekeeper, plus numerous craft foremen. The general superintendent is responsible for all field construction and is assisted by several assistant superintendents and the field engineering force headed by a project engineer. The project manager is responsible for all project management regardless of the size of the project team. H e has staff support from the cost accountant and estimator, as indicated by the dashed line between these positions. A functional link (dashed line) between the cost accountant and the project field engineer exists in Figure 7.4b. The interfacing between these staff members is primarily to exchange project data collected in the field. Because some data are not useful to the project manager in its raw form, the data are processed by the accounting/payroll section before the PM utilizes it. The project team of the medium-sized firm evolves around the close interaction between the PM and the key field managers who are involved in manpower management. These managers/supe~isors are continu-

The Project Team

ACCOUNTANT

CIIl

I

HEAD OFFICE

SUPERINTENDENT

FIELD

COST C L E R K

iy

FOREMAN

/ I'

FOREMAN

FOREMAN

I

COST C L E R K

HEAD OFFICE

QUANTITY

/ + I $ SUPERINTENDENT GENERAL

FIELD

ASSISTANT FIELD

PROJECT FIELD ENGINEER

MECHANICAL SUPT'D CONSTRUCTION

I

FIELD

O T H ER FOREMAN

I CARPENTER^ I FOREMAN

FOREMAN

IMEKE EPER

Figure 7.4 Medium-sized firm project team organizations. (a) Project team organization for a small project. ( b ) Project team organization for a large firm.

ously interfacing in order to more effectively allocate manpower and control crew performance. This continuous communication commences prior to actual construction startup and prevails throughout the life cycle of the project. An approach of this nature is beneficial because it allows increased awareness of, and sensitivity to, labor dollar variance, and hence provides the foundations for effective cost control. Furthermore, continuous interfacing aids the field 'managers by ensuring the supply of information that is requisite input for performing those functions related to crew planning and crew management. Finally, active participation in project management by field personnel is a tremendous employee motivator. The relationship between the project team staff and their administra-

The Traveling Project Manager

tive responsibilities in the organization is evident by relating the project team organization (Figure 7.4) with the company organization charts in Figures 7.2 and 7.3. Typical definitions of responsibilities and functions performed by the project manager, estimator, and superintendent are described in Section 6.3 (Table 6.1). T h e responsibilities and functions of the expediter, timekeeper, and field engineer, as defined by the Associated General Contractors of Chicago, are described in Table 7.1. O n TABLE 7.1 JOB DESCRIPTIONS FOR TYPICAL CONSTRUCTION PERSONNEL AT THE MEDIUM-SIZED FIRM LEVEL Expediter A.

General Functions

An expediter may schedule or coordinate job material requirements. He serves as a trouble shooter when there is a breakdown in delivery schedule. He foresees problems by reviewing plans and specifications of the sub-contractors and coordinating these with the plans and specifications of the architect

B. 1.

Detailed Functions

In some companies receives the plans and specifications and breaks the specifications down by trade 2. In some companies writes to all subcontractors advising them what is necessary to do on their plans 3. Follows up on drawings (i.e., shop drawings or the detailed drawings of project) 4. Submits drawings to the architect after having checked them to see if they match, that the job is correct, that the materials used are those specified, and analyzes the dravrings 5. Maintains constant follow-up on plans and drawings to ensure documents reach the proper place at the proper time 6 . Distributes approved plans to subs, or to anyone else who should get them; has to order enough plans from suhcontractors so that entrusted parties will have sufficient documentation for project schedule 7. In some companies establishes delivery time for materials, equipment or labor, based on when they will he required, when they can be acquired and determines the lead time required for acquisition

May follow the C.P.M. printout, make out delivery schedules, use a bargraph method or the Critical Path Method; make sure the shop items are on the Critical Path Method or the bargraph In some companies does small buying such as purchasing mailboxes, signs, finish items Maintains constant follow-up to ensure that schedule is accomplished Checks all incoming tests to ensure they meet specifications In some companies checks the concrete design, that is, the mix or fixed formula of the concrete used Plans material delivery and schedules with job superintendents Keeps in contact each day with subcontractors Writes memos as needed to architects, superintendents, suhcontractors, etc. Follows up daily on trouble areas, that is, those places where delivery of materials may be lagging In some companies accumulates change order information Generally trouble-shoots, especially for delivery problems

TABLE 7.1 (continued)

Timekeeper A. General Functions A timekeeper is primarily concerned with maintaining cost control of the labor force on a project. H e maintains payroll records and may also maintain records on material deliveries

B. Detailed Functions 1.

2.

3. 4.

5. 6. 7. 8.

9.

10.

11.

12.

13.

14.

Ensures that the men are on the job, what specific tasks they are performing and checks this against job sheets given to him daily by the foreman Checks with the foreman to determine exact job and classification of work each man is doing so that the work can be coded and entered against the correct account Walks-the-job a few times a day Computes previous day's work sheets to obtain costs Projects daily costs to determine if work was completed within the allocated budget Talks over costs with the superintendent Posts workers hours to the payroll on a daily basis Types a cost report each week (in some companies this may be done by central office staff Types payroll each week (in some companies this may be done by central office staff) Types paychecks each week (in some companies this may be done by central office staff) Types all back charges and time tickets Estimates costs of requests from subcontractors for sheds, shanties, carpenters and concrete work performed for them May compile subcontractors' invoices for payment and discuss these with architect to determine accuracy Codes all delivery tickets to maintain costs on all building parts

Keeps records of all reinforcing steel deliveries Records all concrete pours May assist superintendent by ordering labor, lumber and other materials On certain big load days may call the union halls for extra men; will sign these men for the day and pay them by check at night Signs up all new workmen (W-4 forms, applications, etc.) and submits originals to central office Enters new employees names on payroll and proper wage rate for the particular trade Types monthly report on welfare and pension (in some companies this may be done at the central office) Balances the payroll and types it each Monday; submits it to the main office so that checks can be made out and returned to the job site by Wednesday (in some companies this may be done at central office) May travel to various job sites and perform same duties for each of the projects On projects involving Federal funds, he collects payroll data from subcontractors for submission to the government in compliance with their regulations Maintains time record on company truck drivers when material deliveries are made May supervise "time checkers" on larger project

TABLE 7.1

(continued) ~p

Mechanical superintendent

A. General Functions The mechanical superintendent coordinates subcontractor's work with that of the general contractor to ensure that project remains on schedule and quality is maintained

B. Detailed Functions 1.

2. 3. 4.

5. 6.

Compiles listing of major mechanical electrical equipment required Expedites shop drawings and equipment deliveries Assists in preparation of project schedules Prepares weekly progress reports on electrical and mechanical work Coordinates subcontractors' work with general contractor Checks schedule to ensure project is on schedule

Supervises general contractor's work done for subcontractors (equipment production, excavations, etc.) 8. Processes and distributes shop drawings 9. Supervises, inspects and evaluates work performed by subcontractors-ensures there is compliance with plans and specifications 10. Supervises project closely to ensure that the owner is getting his money's worth on suhcontractor work 7.

Equipment Superintendent

A. General Functiom Maintains and repairs equipment owned by company. To do this, he supervises garage and yard personnel and coordinates delivery of equipment to the specific job sites and expedites repairs and deliveries

B. Derailed Functions 1. Supervises, maintains and repairs 2. Purchases parts for maintenance and repairs 3. Expedites repairs of equipment that cannot be done in the company garage 4. Keeps detailed records of equipment, including maintenance costs for each piece of equipment 5. Keeps track of equipment (i.e., which job is using it at any given time)

Makes recommendations concerning purchase of new equipment 7. Provides delivery of equipment to job sites, helping to plan the time, means of delivery to the site, and equipment set-up at site 8. Keeps weekly repair costs on his crew 9. Prepares an annual budget for operation 6.

Scheduling Engineer (Field Engineerp

A. General Functions Scheduling engineer schedules and coordinates. He serves as a trouble-shooter when there is a breakdown in delivery schedule. He maintains a constant follow-up on the schedule to ensure progress as previously planned

Manpower Management Functions at the Medium-sized Firm Level

TABLE 7.1 (continued) B.

Detailed Functions

1.

Receive.. plans and specifications and breaks them down by trade Writes to all subcontractors telling them when it is necessary on their plans Expedites follow-up for drawings, that is, shop drawings or detailed drawings; checks with his own staff for follow up Keeps a close follow-up to ensure that plans and drawings reach the right people at the right time Establishes delivery times for materials, equipment, or labor, based upon when they can be acquired and determines the lead time required for acquisitions

2.

3.

4.

5.

6. Makes out delivery schedules, using a bargraph method or Critical Path Method; makes sure that the shop items are on the bargraph or CPM 7. Discusses material delivery and scheduling with job superintendent 8. Keeps in touch with subcontractors as needed 9. Writes memos as needed to superintendents, subcontractors, etc. 10. Follows up daily on trouble areas, where delivery of materials may be lagging 11. Generally trouble-shoots

Source: "1970 Management in the Construction Industry-Handbook for the Construction Manager," The Builders' Association of Chicago, Inc., North LaSalle Street, Chicago, Illinois 60601. a The scheduling engineer is considered functionally equivalent to the field engineer shown in Figure 7.4b.The Field engineer designation is added to this table by the authors.

7.4 MANPOWER MANAGEMENT FUNCTIONS AT THE MEDIUM-SIZED FIRM LEVEL

larger projects, the job superintendent's functions and responsibilities may be delegated to several assistant superintendents in charge of specific areas. For instance, a project team may include an equipment superintendent and/or mechanical superintendent. The typical functions performed by these staff members, as defined by the AGC of Chicago, are also described in Table 7.1. The construction and management environment of the medium-sized firm is significantly different to that of the small firm, and this difference is reflected in the number of manpower management functions used by the medium-sized firm and by the manner in which these functions are performed. The increased size and complexity of .projects met at the mediumsized firm level, in comparison with those met at the small firm level, is usually reflected in terms of the need for larger field work forces, an increased specialist type work content, and the use of more subcontractors. Whether the medium-sized firm contractor carries more experienced and specialist crews or not, the scheduling and management of field labor crews and work progress predictions become dominant management problems. At the same time there is an increased awareness of the needs for, and the benefits to be gained from, increased management involvement in field construction efforts. A common management solution at the medium-sized firm level is to -

The Traveling Project Manager

use the Traveling Project Manager approach to project management. In comparison with the small firm the number of project manpower management functions performed by the medium-sized firm increases because the complexity of the project environment demands more detailed information and management sophistication. Thus more functions are performed (both in specific form and frequency) and are performed at both the head office and field site levels because of the role of the Traveling Project Manager. The medium-sized firm begins to SCHEDULE AND ALLOCATE MANPOWER BY TRADES (functions S3 and A3) because of the project's manpower requirements in critical trade areas. In addition, the coordination of a number of specialty subcontractors adds to the need to get a fix on trade manning requirements before construction commences and in the formulation of policies to be followed during WORK FORCE MANAGEMENT (function W3) once field construction has begun. The increasing importance of the specialist and critical trade work content in the medium-sized firm's projects calls for increased accuracy in the unit cost cstimating for all the various field activities. In order to establish and continuously update this highly specialized focus of unit cost estimating, the medium-sized firm begins to formally document LABOR PRODUCTIVITY (function R5), and to perform limited ACTIVITY ANALYSIS and PROJECT FORECASTING (functions M3 and M4). Thus at the medium-sized firm level the elements of a systematic and integrated field labor costing system becomes a feature of project management. In order to implement the field labor costing system, the relevant management functions (M6 and R6) are more accurately established and evaluated (M5, R5, and M 4 ) . In this way PROJECT FORECASTS (M3) arc projected ahead to project completion using latest period unit labor cost information. The medium-sized firm does not normally employ the work package approach; hence the functions related to this concept are not performed. As discussed in Section 6.3, the work package concept addresses the management problems encountered with large complex projects (see Chapters 8 and 9). The manpower management functions considered by the authors relevant to an understanding of the modus operandi of the medium-sized firms are shown in Figure 7.5.*The composite listing of these functions represents those most commonly applicable to the TPM management approach to project management. Although the number and range of manpower management functions performed at the medium-sized firm level is not much greater than those performed at the small firm level, significant differences exist in both the manner in which these functions are performed and in where they are performed. Because of the management attitude that produces the Traveling Project Manager, a considerable number of manpower management functions are performed in both the head office and field environments. "The thirty-nine functions have been extracted from the forty-six ideal project Manpower Management Functions chart of Figure 2.7, and are presented iq Figure 7.5 in the same relevant tabular positions.

PLAN P

WORK W

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W1 RELEASE STAFF TO PROJECT

PI CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

2

P2 ACTIVITY DEFINITION

52 ESTABLISH CONSTRUCTION SCHEDULE S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

4

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES

P4 ESTIMATE LABOR CONTENT

5

S5 DEFINE CURRENT PROJECT STATUS

A5 ADJUST CREWS

P6 DETAILED FIELD QUANTITY TAKEOFF 7 P7 ESTABLISH CREW REQUIREMENTS 8 P8 PLAN WORKFACE LAYOUT

S6 REVISE CONSTRUCTION SCHEDULE 57 SCHEDULE PROJECT CREWS

A6 ASSIGN INDIVIDUAL WORK TASKS

6

L 0

ALLOCATE A

1

3 P3 QUANTITY TAKE-OFF

P

SCHEDULE S

RECORD R

MONITOR M

W2 PRE-JOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

R1 HISTORICAL DATA BASE

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS

M4 ACTIVITY ANALYSIS M5 LABOR ANALYSIS

RS LABOR PRODUCTIVITY

W6 SOLVE HUMAN RELATIONS PROBLEMS W7 lNITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

M6 WORK PROGRESS

R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

M8 FIELD INSPECTION

Fignre 7.5 Ideal manpower management functions in Traveling Project Manager management approach-mediumsized firm.

The Traveling Project Manager

7.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT

In addition, these functions are rarely performed by a single staff member in an independent or autonomous manner. Instead, most of the functions involved in the TPM approach to project management are performed jointly, by both head office and field management, in a manner designed to closely link them together. This integration of effort in the performance of each management function is accomplished by the role of the TPM. He repeatedly interacts sequentially with both field managers/ supervisors (such as the superintendent and foremen) and head office staff (such as the estimator, expediter, etc.). Although most of these personnel are physically separated, the frequency of consultation and discussion that results from the TPM management approach ensures an effective collaboration and integration of staff efforts in the performance of these functions. The primary organizational and managerial objectives of the TPM approach to project management is the effective linking of head office and field construction management into a closely knit project team and the integration of their management efforts. This is achieved by the introduction of the TPM into the project team and through his efforts the cooperative performance of many management functions at all stages of project management. In terms of manpower management functions, the TPM management approach ensures that field managers (i.e., the TPM and superintendent) assist in the performance of (many project oriented) head office functions, and especially on large projects, head office staff assist the TPM in the performance of field coustruction functions. Thus it is not surprising that the functional plots of medium-sized firm staff members exhibit a close integration (and often an interpenetration) of their (often joint) performance of management functions at all stages of project management. Typical allocations of manpower management functions to project team members operating in the TPM management approach of mediumsized firms (as shown by their functional plots) are portrayed in Figures 7.6 and 7.7. Figure 7.6 represents the division of functions to those personnel assigned to the project team shown in Figure 7 . 4 ~ .Alternatively, the project team members depicted in Figure 7.4b assume the functions portrayed in Figure 7.7. The actual division of functions may vary slightly depending on specific project size and complexity, and the management capacity of the firm. It would not be uncommon, for example, for the project manager to assume a dual role as both the PM and estimator for some projects. This would probably occur most often on smaller projects and would depend on the existing project portfolio of the firm. It is, however, uncommon at the medium-sized firm level for the project manager to assume such a dual role for all his projects. This does not keep the project manager from working closely with the estimator when preparing the estimate for a project, in which case several head office planning functions might also appear within the PM's realm of responsibility. Thus it must be emphasized that Figures 7.6 and 7.7 represent only an ideal division of manpower management functions for the medium-sized firm. The hierarchical nature of the management plots in Figures 7.6 and 7.7

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

Figore 7.6 Ideal division of manpower management functions for Traveling Project Manager approach (medium-sized firm) using the project team of Figure 7 . 4 ~ .

MONITOR M

RECORD R

Figure 7.7 Same as Figure 7.6, but using the project team of Figure 7.46.

Management Roles in Manpower Management

105

is exhibited in a number of ways. First, for the head office project team members there are clear staff relationships between the project manager and both thc estimator and the cost accountant; at the same time they have line (or staff) relationships, together with the executive manager, with those managers higher in the company structure who are concerned with business functions. The functional plots and organizational relationships of the project manager, estimator, cost accountant, and executive manager should be contrasted with those for the project manager and estimator of the small firm (see Figure 6.7), where these two latter individuals often represent the entire top management team of the small firm. The traditional line structure of the fieldstaff is still very evident in the overlaying functional plots of the project manager (i.e., TPM), superintendent, foreman, and crew. On larger projects (as indicated in Figure 7.7) additional line structures develop for both head office and field staffs. This is illustrated by the functional plots for the estimator and quantity surveyor, cost accountant, and cost clerk. In the field some of the functions and chores associated with the project manager and superintendent (see Figure 7.6) are relieved by the field engineer and timekeeper (see Figure 7.7), thus enabling these former managers to devote more of their time to the management planning and control of field operations. The Project Manager's rolc in manpower management assumes a greater field focus for the mcdium-sized firm. His responsibilities in initial and overall project definition and project management diminishes while his responsibilities increase in the construction phase. This can be seen in the plots; the executive manager and estimator (who are more senior staff) assume major roles in these phases and the TPM can call on the services of the project superintendent in the head office planning and scheduling efforts. In the field the TPM enters more directly into the planning of trade and crew requirements and in the monitoring of LABOR PERFORMANCE and FJELD ACTIVITY ANALYSIS. The interfacing between the head office and field is apparent from the overlapping of management roles in executing various functions. The superintendent participates in scheduling and monitoring at the head office level (functions S1, S2, S3, M4, and M5). In turn, as shown in Figure 7.6, the PM works closely with the field managers in crew planning and management (functions P6, P7, S6, W6, and M6). These features of the MMF plots are a direct expression of the TPM approach. The project manager's responsibility focus expands on smaller projects. Conversely, on larger projects, where the number of field manager/supervisors increases (see Figure 7.46), both the PM and the superintendent's responsibility focus become more specialized. In Figure 7.7, the field engineer supports the PM and superintendent in the area of progress reporting and field scheduling, while the timekeeper primarily assists the field engincer and superintendent in monitoring and recording labor hour expenditures. This divests the PM and superintendent of the time-consuming responsibilities of monitoring and recording actual progress data, in effect providing more time for analysis and control. In both plots the concentration of

The Traveling Project Manager

responsibility lies heavily with the project manager, job superintendent, and foreman. It should be emphasized that the project manager, pursuant to his administrative position, will assume major project management responsibility without being inundated by many other general management responsibilities. This begins to obviate the management function overloading that exists at the small firm level. The description of the functional plot for the foreman at the mediumsized firm level would be more or less identical to that of the foreman in the small firm (Section 6.5). Similarly, the description of the superintendent role as described for the small firm would be similar in the mediumsized firm. However, the superintendent gains additional functional responsibilities as a result of the TPM approach and the emergence of an integrated labor unit cost control system. These changes were discussed in the preceding section. The role of the project manager has changed dramatically, as discussed in this section. Thus the remaining paragraphs will focus on the new project team positions that emerge, such as the timekeeper, field engineer, cost accountant, and exzcutive project manager. The Timekeeper's role in manpower management focuses primarily on the monitoring and recording of labor hour expenditures (M7 and R7). This includes the collecting of time cards and the summarizing of hours worked. He must also verify the hours worked on a daily basis and cost code the hours on each time card. The timekeeper also summarizes the total manpower by craft on a daily basis. The timekeeper has a good working knowledge of the project cost codes and can relate a cost coded work task to the physical component of work. He must be familiar with the various crews and personally know the foremen. The timekeeper may also assist with payroll in terms of processing payroll information in the head office. The timekeeper position emerges on the larger projects at the mediumsized firm level. The functions he performs are handled at the small firm level by the superintendent and foremen. The timekeeper in this project team structure (Figure 7.4b) reports to the superintendent through the project field engineer. The functional plot of the timekeeper, depicting his job description in terms of manpower management, is shown in Figure 7.8. Notice that only those functions that he performs are illustrated.

I

I

TIMEKEEPER M7

RESOURCE USE

Collects: Verifies: Determines:

time cards hours worked and type of work per employee total number of employees by craft

R7

LABOR HOURS

Assigns: Develops:

cost code to work task categories manpower tally report

i Figure 7.8 Typical timekeeper manpower management job description plot (from Figure 7.7).

107

Management Roles in Manpower Management

The Field Engineer is involved with many aspects of the construction process. In relation to manpower management, his functional role in field analysis is to support crew planning (P6) and work progress and performance analysis (M6 and R6) management efforts. Consequently, the field engineer works extensively with specifications and drawings and has a sound practical construction background. He also checks that proper cost codes are being assigned to labor hours. The field engineer must also be proficient in scheduling techniques, because he often assists the project manager and superintendent in the field scheduling of work activities (S5 and S6). This requirement follows from his ability to read and translate drawings and specifications into construction activities. This scheduling responsibility ensures that he also assumes a coordinating role with the project subcontractors. The field engineer's functional plot shown in Figure 7.7 is expanded in Figure 7.9 only in terms of the duties he performs in relation to each manpower management function within his plot. The Cost Accountant position in manpower management at the mediumsized firm level shows a professional growth pattern up from that of the office support personnel position in the small firm. The cost accountant is usually a professional with some technical or accounting background. In the manpower management area, he is functionally responsible for PROJECT COST ACCOUNTING AND PAYROLL (R3) and some aspects of PROJECT FORECASTING (M3). He develops and maintains HISTORICAL LABOR DATA FILES AND RECORDS (R1 and R23. Generally, the cost accountant is responsible for the development and operation of any company computerized payroll and cost control systems. In this capacity, he will work closely with the project manager, and accordingly his functional plot may enlarge to include the development and analysis of the labor unit costing information system (M4, M5, and R5). The performance of the cost accounting functions on larger projects

r

3 FIELD ENGINEER P6 DETAILED S5 DEFINE FIELD QUANTITY CURRENT TAKE-OFF PROJECT STATUS Evaluates: quantity content for work task materials Evaluates: any technical engineering problem

Analyzes: activity status Analyzes: subcontractors' status

\

R6 QUANTITIES IN PLACE

M6 WORK PROGRESS Determines: physical quantities placed Evaluates: percent complete per activity Inspects: quantities to complete

56 REVISE CONSTRUCTION SCHEDULE

Records: quantity status Documents: daily activity

/

Revises: activity completion dates

L Figure 7.9

J

Typical field engineer manpower management job description plot.

I

I

I

The Traveling Project Manager R1 HISTORICAL DATA BASE ~ e x ~labor s : unit cost base combined from many projects for components of work -

R2 GENERATE LABOR MANAGEMENT DATA Generates: labor unit cost file by work tasks from each project COST ACCOUNTANT

M3 PROJECT FORECASTING

R3 PROJECT COST ACCOUNTING

Develops: labor cost accounting system (payroll etc.) Maintains: labor cost accounting systems

Develops: labor cost prediction system Maintains: labor cost prediction system

L

1

Figure 7.10 Typical cost accountant manpower management job description plot.

often requires the assistance of timekeepers and cost clerks. The functional plot of the cost accountant in Figure 7.7 can be expanded to reflect the duties he pedorms. This plot is illustrated in Figure 7.10 and covers only those duties relevant to manpower management. The role of the Executive Project Manager has a top management focus on a project basis. He assigns and releases staff to the project, reviews summary level project status and cost performance reports, and makes decisions critical to the project's direction and as the need arises. How-

>

f EXECUTIVE PROJECT MANAGER A1 ALLOCATE OFFICE STAFF Designs: project team Assigns: project manager, estimator, cost accountant A2

ALLOCATE FIELD STAFF

Approves: field superintendents, field engineers, etc. Approves: functional responsibility of each

W1 RELEASE STAFF Releases to job: project manager, estimator, cost accountant W2

M1 SUMMARY PROJECT REPORTS Reviews: project status and labor cost predictions Enters: critical decision problems

PRE-JOB LABOR CONFERENCE

Enters: sensitive union problems Solves: subcontractors disputes/problems

Figure 7.11 Typical executive project manager manpower management job description plot.

Management Roles in Manpower Management

109

ever, on larger projects the executive project manager may develop a project team organization to match the complexity of the project. The executive project manager enters sensitive industrial relations problems whenever union labor problems are involved and reviews subcontractor problems as requested. He performs functions previously within the management plot of the project manager of the small firm. His changing role begins to emphasize the professional expertise and focus required of top management. The executive project manager is a partner or an executive in the company and therefore has both a business and a construction background. His detailed duties in manpower management as shown in Figure 7.11 are plotted within his MMF plot from Figure 7.7. In summary, the managerial roles of the project team at the Traveling Project Manager level assume a more professionally focused aspect than those of the PTC level of the small firm. This increasing professionalism is emphasized by the emergence of specialists performing functions in delegated areas of authority. The project management approach of the medium-sized firm can then be considered as the beginnings of a professional oriented approach to project manpower management.

CHAPTER

8

The Project Team Structure: Field Based Project Management

All project team structures can be described in terms of the relationships between the project team components of project definition, field construction management, and project management. As indicated in Chapter 6, the embryonic project team structure that results from the separation and virtual independence of these components can be seen in practice at the small firm level when head office management personnel are prevented by work overloads from maintaining close and continuous contact with field operations. Once head office management can free their attention for close field supervision aimed at linking the field construction management and project management components, the possibility exists for the development of an integrated project team structure between these components. A common and practical solution to this project team structure is that produced by the Traveling Project Manager. As indicated in Chapter 7, these components are effectively linked and integrated by the rapidity and frequency with which field problems can be detected, considered, and solutions decided at the head office level and transmitted to and implemented in the field. A natural development of the project team structure is to base the project manager in the field and to support him by carrying into the field project team personnel capable of performing many project management functions otherwise normally handled in the head office. The project size and management environment that encourages this development in the project team structure is generally met at the large firm level in the construction industry. A general schematic representation of this project team structure and the relationship between head office and field based components is shown in Figure 8.1 (reproduced from Figure 5.3) for reference. The relationships in Figure 8.1 focus specifically on the separation of basic project oriented functions and the nature of information flows that link the head office and field based functional groups. This chapter discusses the large firm environment and common organizational structures that exist at the large firm level and relates them to

The Large Firm Environment

I

ENGINEERING A N D .I.DESIGN ..................................i DEVELOt'MPhhT

i

CONTINUOUS HEAVY DATA BASED INFORMATION FLOW

i

HEAD OFFICE

-

PROJECT DEFINITION

FIELD LOCATION

PROJECT DEFINITION-FIELD OFFICE

PLAN-Estimate development

SCHEDULE-Detail work schedules ALLOCATE

Deta~ledmanpower {planning SCHEDULING AND MANPOWER GUIDELINES

0

-:a ai9 HISTORICAL DATA FLOW

i.%-

i

....: 2

PLAN-Engineering md Desip Dnrelopmenr

................... iz

b:z

v.

PROJECT MANAGEMENT

zi 2 . . . MONITORIRECORD-Engineering/de.sip m d rtotur

progress

C

mi2

RECORD

Historical data development Data processing for field

PLAN SCHEDULE

Number of crews and adjustments

WORK

Crew action and labor relations

MONITOR RECORD

SCHEDULE

I

THE LARGE FIRM ENVIRONMENT

I

CONTINUOUS SPECIAL INFORMATION FLOW

Figure 8.1

Detailed crew planning and scheduling

ALLOCATE

N T R dO :D R :1

3; 5

f

) )

Crew management Field monitoring

1-

J

ACTIVITY DATA FLOW

PROJECT MANAGEMENT-FIELD OFFICE

and approvals

8.1

FIELD CONSTRUCTION

)

Progress and status and data processing

- Status and revire

f

Project team structure: Field Based Project Management.

the Field Based Project Management concept of the project team structure. Later sections introduce the specific manpower management functions relevant to this mode of operation and relate them to the roles performed by the variety of specialist construction personnel found emerging in the large firm environment. The Field Based Project Management approach emerges in a construction environment characterized by: Large and complex projects that are engineering-oriented and highly technical in nature. Projects that are located in isolated areas and/or near client offices and operational areas.

Large project labor forces are involved, including many highly specialized trades.

An engineering, design and construction life cycle up to ten years in duration.

In this environment, the typical project size could range from $60 million upward, implying that total company volume i s well in excess of $100

Field Based Projed Management

million. The size of the company's portfolio of projects varies significantly with project type and the specialized nature of the firm's area of business. The number of projects in the portfolio of projects also fluctuates tremendously with the economy. T o manage projects of the magnitude described above, the firm's organizational structure and project approach changes dramatically from the medium-sized firm. The number of decision makers increases sharply and each becomes specialized within a given functional area. The generally heavy engineering content of these projects creates the need for two project team levels, one to engineer and design the project, and the other to construct the project. The pure construction firms operating in this environment would have construction capabilities similar to that of the construction facet of the design-construct firm at both the head office and field levels. The number of firms operating at the large firm level is probably in the low hundreds and includes design-construct firms, industrial firms that house complete design-construct practices, and pure construction firms, with the majority of firms being design-construct. The design-construct firm has an additional advantage, because it can operate in either the design-construct or design and construction modes. Another common practice at this level is for the firm to design the facility and then act as the construction manager and manage the construction of other contractors. Although there are fewer firms in the large firm category, the competition for each project remains severe, because fewer projects are available. Furthermore, the size of each project must be considered in terms of its financial and resource impact on the company. Because many projects in this category require enormous engineering and construction forces, the number of projects in the large firm's portfolio must be continuously geared to company size and anticipated growth patterns. The common types of design-construct projects are those in the heavy and industrial construction area, and include nuclear power plants, chemical processing plants, manufacturing plants, sewage plants, and mining and ore processing plants. These facilities are predominantly engineering oriented. Their technical nature and complexity results in project dollar magnitudes that are significantly higher than those for most projects. For instance, a nuclear power facility could cost over $2.0 billion for a twounit station. Building construction is another type of construction in the large firm area and includes multimillion-dollar high-rise commercial office buildings, sports complexes, and so on. Although these projects requi~esignificant engineering capabilities, in many cases the main thrust is on the structure's architectural features. In total, the large firm category appropriates a significant percentage of the total construction dollar volume in the U.S. construction industry.* The corporation is the only feasible and realistic mode of operation for the large firm. As a corporation, the firm generates the majority of their funds through retained earnings and stock issues to the general public

* Many

companies in this environment operate in foreign construction markets.

The Large Firm Environment

and to company employees on a profit sharing basis. Some long-term debt financing h a y be incurred, but it is not a significant percentage of the total corporate financing picture. The general size of the designxonstruct firm's engineering employment force often extends into the thousands. The number of key salaried personnel is not readily obvious because the size of the employment force and company structure generally necessitate a multitiered management structure in order to effectively coordinate the activities of the engineering disciplines encountered. In most cases each project requires a variety of engineering skills in broad and diverse specialized areas of engineering, such as mechanical, electrical, power, and construction. The designxonstruct corporation is often divided into subsidiaries, each with a specialized capability to design and construct a type of project. For instance, a designxonstruct firm could have a subsidiary that specializes in power plants and/or process plants. The subsidiary normally operates as an autonomous entity capable of performing complete engineering, design, and constmction functions. The large pure construction firm may not be divided into subsidiary corporations but rather into divisional offices. Each divisional office is capable of executing the construction process and acts autonomously in this effort. The organizational structure of the divisional office would be a mirror image of the corporate headquarters with the exception of corporate-level management operations. The majority of the construction dollars gencrated in the large firm range are from the private sector. Typical dientele are the utilities, petroleum, manufacturing, mining, and metal companies, and corporate organizations responsible for commercial high-rise buildings. Public agencies also sponsor many projects in these categories, as well as for water and sewage treatment services. Each client is related to a segment of the industrial, building, or heavy construction area and solicits business from those large firms most closely attuned to their work. As an example, a utility company is more directly associated with power plant construction and therefore would seek a firm that has demonstrated the capability to design and/or construct power facilities. The large firm has the capability of utilizing its own construction force (direct field labor) or employing the expertise of a specialty contractor's labor force. This depends upon the nature and type of work under consideration. The larger industrial projects have major permanent plant items that are highly specialized and cannot be installed by the prime contractor. Thus the prime contractor must rely on a subcontractor or the equipment vendor to furnish the necessary labor and expertise for installing the equipment, such as the steam generating system for a power plant. The large prime contractor consistently utilizes the expertise of the small and medium-sized firm contractors. The prime contractor is the major type of contractor in this category, because there are few specialty contractors that can generate the high volume of work associated with the large firm environment, with the possible exception of the vendor supplying material and labor for major equipment items.

Field Based Project Mamgement

The contractual relationship between the large firm and their clients is most likely to be one of two forms: (1) project cost plus a fee or (2) a fixed price. However, the majority of the projects these firms construct are negotiated contracts on a cost-plus-fee basis for one or more of the following reasons: 1. The dollar magnitude of an individual project makes competitive bidding infeasible. 2. Only a select number of firms are capable of performing these specialized projects. 3. Each project contains a sufficient number of unknowns which makes cost-plus contract the only feasible contract. 4. On design-construct projects, time savings associated with overlapping the design-construct phases is high.

8.2

ORGANIZATIONAL STRUCTURE OF THE LARGE FIRM

The fixed price contract is the exception rather than the rule. When the client requires a fixed price contract, the client generally negotiates with a selected number of firms and only requests bids from those firms. If a large firm accepts a fixed price contract, any client changes to the scope of work are well documented and added to the cost of the project. Designconstruct firms rarely pursue work on a fixed price basis because of the inherent risks involved. The large pure contracting firm is an extension of the medium-sized firm. It slowly expanded its volume through competent and successful projects and thereby moved into the large firm category. In addition, the large firm extends its work area through division offices and the capability of operating in remote areas. In comparison, the g~owthof the designconstruct firm is commensurate with the growth of the markets in which it participates. For instance, as industrial firms expand their capacity to meet increasing consumer demands, the industrial construction industry expands correspondingly. This expansion in capacity is accompanied by new technologies that continuously make designs more technical and complex in nature. The design-construct firm was probably founded as either solely an engineering or a construction enterprise. On recognizing the need for dual capabilities, engineering and construction firms began to emerge. Often, the engineering firm would attempt to expand its expertise and slowly enter into the construction phase of their work. The net effect was a facility constructed under the direct supervision of those engineers responsible for the design, with the subsequent advantage that changes in design could be incorporated into the facility even after construction had commenced. By controlling both the design and construction phases, the firm develops an expertise that is seldom obtainable by the pure construction firm. The construction environment of the large firm is the key factor in the development of its organizational structure. Larger projects, normally in terms of enormous dollar volumes, demand significant increases in both project team manpower and direct field labor manpower. Furthermore,

Organizational Structure of the Large Firm

115

the technical nature and complexity of each project introduces requirements for specialized expertise in areas not previously encountered or required in the construction environments of the small and medium-sized firms. The large firm's requirements for significant manpower levels and specialized expertise raises the considerable manpower management problem of integrating a large complement and variety of manpower in a manner that satisfies the needs of each project in the company's portfolio and the business operation of the company as a whole. The organizational structures that develop at the large firm level in response to this construction environment illustrate a number of organizational management principles that focus on organizational development concepts and the organization's ability to cope with rapid expansion and redeployment of large numbers of key staff and personnel. These principles and concepts will be related to typical illustrations and examples and presented in the following paragraphs. The construction environment, because of the size and technical complexity of the projects, creates a demand for a different management focus at the large firm level. This changing management focus results from the fact that the range of expertise requir6d at the top management and project levels is beyond the capacity and/or experience of individuals. The professional management and technical expertise within the company is limited in terms of both the person's exposure and capacity to operate in more than one functional area. Hence a clear distinction and separation between all general managzment functions, whether business oriented or project oriented, becomes more relevant to the operation of the business. The executive and business management functions (i.e., investing, ownership, practicing, marketing, corporate administration and financial) acquire a full-time management emphasis that is not required of firms in the small and medium-sized construction environment.* The project functions [i.e., project management, planning, estimating, construction, and engineering (where applicable)] must then provide the specialized expertise, talents, and manpower required for all company projects as demand dictates. The application of the principle of limiting management experience, exposure, and absorption capacity is illustrated in the company organizational structure of the large firm in two ways: first, by the separation of top management business oriented function from all engineering, project support, and project management functions; and second, by a vertical division between departments based upon technical, project management, and general project support functional areas. This can be illustrated by analyzing the organizational structures of a typical pure construction firm and a design-construct firm in the large firm category, as shown in Figure 8.2. In Figure 8.24 the business management, financial (accounting and payroll), and corporate administration functions are distinctly separated on the organizational chart of the pure construction firm. The project *The exception to this rule is that several accounting functions are also performed on a project basis.

Field Based Project Management OWNERSHIP INVESTING

0 PRACTICING

I CONSTRUCTION

ADMINISTRATION fa)

INVESTING

rl PRACTICING

I CORPORATE

I

PROJECT MANAGEMENT

I

ENGINEERING1 DESIGN

fb)

Figure 8.2 Organization chart for large firm. (a) Pure construction. (6) Designconstruct.

functions (procurement, engineering, project management) are also separate functional areas and are realigned to provide specialization in these areas. For example, the procurement function becomes increasingly specialized, because the procurement effort for projects in the large firm environment often requires continuous surveying and contact with all available product markets in the United States and foreign countries. A highly trained and qualified procurement force is required to completely explore these markets, purchase materials and permanent plant equipment, and then expedite them to many different job locations. As a further illustration of changing organizational structure, engineering becomes a functional category that encompasses both the planning and estimating functions (see Figure 8 . 2 ~ ) .Project management becomes a functional area on its own, with responsibility for construction.

Organizatioual Structure of the Large Firm

117

There is a twofold rationale behind this organizational change. Larger projects intensify the demands for effective project management and increase the requirements for technical engineering in such areas as cost control and planning. The managers involved in project management cannot afford thc heavy commitment to performing the planning, scheduling, and cost control functions, because a greater percentage of their time is dedicated to client interfacing; establishing project directives, policies, and procedures; and problem solving. Thus the project management level must rely on other disciplines to perform scheduling and cost control functions, which were previously incorporated under the project management group. In contrast to the pure construction firm, the organizational chart of the design-construct firm in Figure 8.2b depicts a complete functional autonomy for each general management function. Furthermore, it includes the addition of the engineering and design facet necessary for this type of large firm. The lower tier of fnnctions are the project oriented functions, whereas the upper tier of functions, excluding procurement, are business oriented. I t is interesting to note that the project management and construction functions are also split into two areas, each responsible to the executive level. This further stresses the need for a heavy commitment to effective project management and the establishment of a strong construction group to complement the engineering and design facet. In the large firm environment, the cultivating, integrating, and organizing of a large complement and variety of professional managers and technical experts in a manner that satisfies both business and project oriented functions is a significant management problem. The problem is solved by the finer division and separation of responsibilities required as a result of the growth of specific technical and professional expertise in all areas of company operations. This finer division of responsibility is implemented by creating a suborganization structure uniquely segregated into functional areas which, because of their size, are signified as departments. The departmental breakdown is consistent with the general management functions but are of necessity dissected into more finite components. A further vertical breakdown within each general management area is likely to occur but will differ from company to company depending on the technical expertise required, the type of construction practice performed, and the specific size of the company. In this environment, management expertise and responsibility is widely dispersed throughout the company and within each department. The departmental organizational principle is introduced to the organization charts in Figure 8.2 by identifying management positions associated with each functional category. As a result, a management oriented organizational structure would appear as shown in Figure 8.30 and b. The ownership, investing, and practicing functions in both organization charts are the full-time responsibility of the board of directors and president. These executives are rarely involved with specific projects except to review critical items such as project cost estimates, to assist in problem

Field Based Project Management

1

BOARD OF

oREcToRs

/

9 PRESIDENT

VICE-

CONSTRUCTION MANAGER

1

BOARD OF DIRECTORS

1

'7 PRESIDENT

I

VICEPRESIDENT MARKETING

VICEPRESIDENT ADMINISTRATION

PRESIDENT PROJECT MANAGEMENT

PRESIDENT ENGINEERING

COMPTROLLER

PLANNING A N D

PRESIDENT PROCUREMENT

CONSTRUCTION

See Figure 8.4b

Figure 8.3 Management responsibility plots. (a) Large pure construction firm. (b) Large deSignW20n~t~ct firm.

solving under critical circumstances, and/or client interfacing. The business management and project oriented functions are the responsibility of those managers aligned with a specific functional area or department. The vertical breakdown of professional and technical expertise within a department is illustrated in Figure 8.4. The engineering department of the pure construction firm,as shown in Figure 8.4a, is comprised of three sections: estimating, contracts administration, and engineering. These sections are the responsibility of technical managers, often called assistant managers, section chiefs, or supervisors. Each of these managers has a staff of personnel from which project assignments are made. The division managers report to the department

Organizational Structure of the Large Firm

*Ipq ENGINEERING

ADMINISTRATOR

SURVEYORS

+I ENGINEER

ENGINEERS

Li

PLANNING ENGINEERS

1

PRESIDENT ENGINEERING

5[

CONCEPTUAL ENGINEERING AND DESIGN

ENGINEERING SPECIALISTS

I -

POWER

f

-

STRUCTURAL

SPECIALISTS

ELECTRICAL

ASSISTANT MANAGERS

SUPERVISORS

7

DRAFTSMEN

Figure 8.4 Engineering department organization. (a) Large pure construction firm. (6) Design-construct firm.

m a n a g e r , d e f i n e d a s the m a n a g e r of e n g i n e e r i n g in t h i s figure. H e , in turn, r e p o r t s to the p r e s i d e n t of t h e c o m p a n y . T h e e n g i n e e r i n g d e p a r t m e n t of a d e s i g n - c o n s t r u c t firm ( F i g u r e 8.4b) normally c o n t a i n s a v a s t array of d i v i s i o n s . T h e s e d i v i s i o n s c o r r e s p o n d to t h e various s p e c i a l i s t e n g i n e e r i n g f u n c t i o n s r e q u i s i t e to t h e c o m p a n y ' s l i n e of business. For e x a m p l e , a c o m p a n y that d e s i g n s and c o n s t r u c t s

Field Based Project Management

electrical power generating stations would have a power division, stmctural division, electrical division, and others. These divisions would have an organizational sequence similar to that shown for the structural division in Figure 8.4b. Consequently, a further dissection of responsibility emerges within each division of such large firms mainly because of the large number of technical engineering and design personnel demanded for the projects. The vertical reporting lines are rolled up from the engineers and designers of a division, to the division managers, to the department manager, who is ultimately responsible to the president for the performance of the engineering department. All departments within n large firm are governed by the policies and procedures set forth by the executive component of the company. However, the individual departments do act autonomously in designing, structuring, and administering their own departmental policies and procedures provided that the department philosophy is in line with the company's overall directives. This management principle of organization results from the requirement for specialized technical expertise, thc need to cultivate this expertise, and the ability to have rapid expansion and reduction of personnel to support the company's projects. The manager of engineering in Figure 8.4a and the manager of structural engineering in Figure 8.4b would design and structure the organization charts of their departments or divisions. This would include, for example, the determination of lines of authority, the types and numbers of professional and technical positions, and the authority and responsibility assigned to each position. Each of the department managers would also have the responsibility for administration of their own manpower and of finding and training the manpower to be supplied to each project. The department organizational concept enables the department manager to develop and cultivate levels of professional management and technical expertise which facilitate the growth of the project team. The department concept further promotes specialization in which employees can cultivate an area of expertise, but with a limited exposure and management capacity in relation to project management. This specialization characteristic becomes important when a project team is formulated, because the project team is by definition a collection of personnel, each specializing in a particular functional area of project execution and management. Thus each department is responsible for supplying the project team with managers, technical staff, and so on, in all areas associated with their department. This responsibility focus becomes a fourth principle of organizational development encountered in the large firm environment. The company organization charts, division organization charts, titles, and so on, described in Figures 8.2 through 8.4 are only representative examples for the large firm. Many different organizational charts and an endless list of job titles exist at the large firm level. Each will differ slightly from firm to firm depending on the philosophy of the firm. The illustrations provided are typical of the types of classifications and the degree and detail in which organizations might emerge within the large firm environment.

The Project Team

8.3 THE PROJECT TEAM

121

The structure and size of the field component of the project team that emerges at the large firm level depends upon four major factors:

1. The functional breakdown of the large firm into departments. 2. The engineering and industrial process content of the project. 3. The magnitude of the field effort required in project support functions such as payroll and procurement. 4. The magnitude and sophistication of client demands, especially on remote sites that are close to the client's head office. Each of these four factors has a noticeable effect on either an organizational component of the field project team structure or on a structural form characteristic of the project team organization. The impact of these factors will be developed in general terms and illustrated later by specific examples. To manage a project, the company draws technical managers and staff from the various departments to meet the needs of the project. Once the individual is assigned to a project, he becomes an integral member of the project team. The employee's functional responsibility is to the manager of the project team; however, he must maintain an administrative link to his department manager. Normally, personnel from each of the project oriented functions are represented on the project team. The exact number of personnel is dependent upon the size of the project, its nature, and the desired level of management control. The concept of drawing technical managers and staff from the various departments for the project team is illustrated in Figure 8.5. The circle portrays the project team and the dashed lines depicting the departments from which personnel are drawn to the project team. The dashed lines also portray the administrative links that each project team member maintains with his parent department. The organizational structure that develops in the field project team can take one of two general forms, as shown in Figures 8.6 and 8.7. Figure 8.6 illustrates the case where the project team members can conveniently be grouped into three main areas (i.e., construction, field engineering, and field support), headed by a manager/supervisor type, so that each major field functional area reports to the resident field project manager. Thus the elements of a field top management group are established. If the size of the project team and the number and importance of the various functional areas prevents this simple development, then the enlarged form of the field top management group becomes necessary, as shown in Figure 8.7. If a pure construction project is involved with little specialist or process engineering content, the field engineering component of Figure 8.6 may be attached to the construction group in a purely staffing function (such as, for example, in scheduling and the preparation of field drawings). If payroll processing, field accounting, and procurement functions are minimal, the field support component of the field project team degenerates into a small office administration group. In all cases, however, the project team

'7 PRESIDENT

-

Figure 8.5 Project team and department relationship.

CORPORATE BUSINESS

n

PROJECT SUPPORT DEPARTMENTS

PROJECT MANAGFWFhT DEPARTMEN1

COhSTRUCTlOh DEPARTMEVT

EhGlhEERlhG DEPARTMENTS

Flgure 8.6 Project team development structure.

The Project Team CORPORATE BUSINESS

I

I

PROJECT PROJECT SUPPORT MANAGEMENT DEPARTMENTS DEPARTMENT

I

I

I

CONSTRUCTION E N G I N E E R I N G DEPARTMENT DEPARTMENTS

Figure 8.7 Project team development structure.

members maintain their administrative links with the parent departments (as shown by the dashed lines in Figures 8.6 and 8.7). A typical project team organization that develops in the pure construction area of the large firm environment and which takes the general form of Figure 8.6 is shown in Figure 8.8. The key man is the field project manager, who reports directly to the head office based manager of the project. He has full authority and responsibility to manage and control the field effort. As shown in Figure 8.8, the PM's field team is basically divided into three areas: Office management. Field construction. Field engineering. The office management function includes accounting, payroll, and procurement; the engineering function includes scheduling, cost control, and technical engineering. The final area is the field construction management force, including the general superintendent, craft superintendents, and others. Each area has its own organizational structure, with definite reporting lines established to the functional area manager. The project engineer is responsible for all technical engineering, both in the field office and field location. Any office engineers, field engineers, and contract administrators would fall into this area. Cost and scheduling each have their own section within the engineering area. The field construction team could be further divided by crafts such as carpenter, laborer, electrician, and iron

MANAGER OF PROJECTS

rHEAD OFFICE

I

I

A C CO U NTANT

PURCHASING AGENTS

I

I

------

I PLANNING

COST

I

I

I

I

I

I I

I

I

I r----1

I

I

I

I

I I I

I

I I

I

I I

r-c;sy-i

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OFFICE

GENERAL SUPERINTENDENT

PURCHASING GENERAL

Figure 8.8 Project team organization for a pure construction project.

The Project Team

worker. The general superintendent would remain the principal manager; however, the superintendents would be subdivided according to either craft affiliation or a specialty area of expertise, such as equipment superintendent. Each craft superintendent would have under his supervision a craft general foreman and craft foremen. He would be responsible for all work related to his craft, such as carpentry work for the carpenter superintendent. The field team contains field accountants, purchasing agents, costs engineers, and scheduling engineers, all of which have counterparts in the head office. The dashed line between these field personnel and the head office counterpart shows this administrative relationship. The pure construction firm's project team organization is devoid of a major engineering thrust, because the firm does not participate in this phase of the project. Although the project team supports a small technical engineering force, their main focus is not engineering for design but rather translating specifications, designing formwork, field design as needed, and possibly drawing "as builts." In the project team chart shown in Figure 8.8, overall project responsibility is under the direction of a manager of projects. This professional manager could either be assigned to the project full time or part time, depending on the size of the project. His management focus encompasses all facets of the construction process, and therefore he must have knowledge of all project oriented general management functions. At the head office level, the project team consists of the team members necessary to perform the early project definition functions, such as estimating and pre-job scheduling. These project team members, excluding the estimating group, will assist in reporting progress to the manager of projects when the project is in the field. In terms of manpower management, the majority of the effort is field oriented. Consequently, a rather extensive field organization is designed to give the field maximum capability to handle this heavy management commitment. A typical project team organization that develops in the designconstruct area of the large firm environment and which takes the general form of Figure 8.7 is shown in Figure 8.9. Since the design-construct project is often larger and more complex, the project team organization expands its size. In the head office the most obvious change is the addition of the engineering and design function. In this illustration the head office project engineer is responsible for technical engineering and design. The engineering and design staff under his responsibility, as shown in Figure 8.9, is a composite of technical personnel from each department. Consequently, the project team will have structural engineers and designers, electrical engineers and designers, and so on. The other head office functions are basically performed by the same types of personnel as identified on the pure construction firm's project team. In this case, however, the head of the project team is classified as a project manager. The project manager has responsibility for both engineering/design and construction and therefore must be knowledgeable in both areas. His position is, however, comparable with the manager of projects described in Figure 8.8, with the exception that he is normally assigned to only one major project.

Field Based Project Management

0 CLIENT

I

I

PROJECT MANAGER r--L-

-zq

1

QUANTITY 'S URVEYO RS '

CONSTRUCTION OF^^^^ ;;'A"

L----A

H E A D OFFICE

FIELD

/-------p'

PROJECT CONSTRUCTION ORGANIZATION

FIELD

FIELD

Figure 8.9

AREA SUPERINTENDENTS

COST ENGINEER

Project team organization for a design-construct project.

The construction function in the design-construct firm enjoys a strong position on the project team, because the project manager will rely heavily on the expertise of the construction managers. This characteristic appears on the project team in the form of a construction manager, who reports directly to the project manager and is responsible for all aspects of the construction effort in the head office and field. Because the construction manager is stationed in the head office, he must have a responsible manager in the field with the ability to manage all phases of the construction process at the field level. This manager is classified as the resident field manager and is equivalent to the project manager in the field organization

Manpower Management Functions at the Large Firm Level

8.4 MANPOWER MANAGEMENT FUNCTIONS AT THE LARGE FIRM LEVEL

127

of the pure construction firm.* The main difference is that the resident manager's line of reporting flows through the construction manager; however, direct communication with the project manager or project engineer in the head officewill always occur. The field component of the project team has a field office engineering and design staff, which would include such technical personnel as field structural engineers, and pipe engineering designers. A noticeable change in the field project construction organization is a further segregation of functional areas. For instance, procurement becomes an autonomous group, as does cost engineering. These groups would have their own organization, depending on the size of the project and number of staff positions required. The majority of the project team members can be classified as permanent salaried employees of the firm. They are relocated by the company to the various project sites as needed. They also travel frequently from a head office assignment to a field assignment and vice versa, depending on the philosophy of the specific company. Employment permanency is a valuable asset to the company, because the project team members become well indoctrinated into the company's method of operation and its policies and procedures. This is essential to developing lines of communication and close interaction between all the project team members. I t . must be emphasized that the foremen still remain outside the company's sphere of influence especially in a closed-shop environment. In an open shop environment, a staff of foremen is cultivated by the company in terms of permanent positions. In the closed-shop environment it behooves the large firm to move toward creating a pool of foremen loyal to the company, as is the practice in small and medium-sized firms. The project team members aligned with the organizational charts shown in Figures 8.8 and 8.9 perform a multitude of management functions relative to project execution. Many of these functions focus on manpower management problems. This increased manpower management focus arises from a number of factors, many unique to the large firm environment. The physical complexity of many industrial projects at the large firm level is such that it becomes necessary to divide the project into physical areas, zones, process levels, and so on, as a means of establishing a fix on the project for estimating, scheduling, and work force management purposes. In this way management effort can be focused systematically on identifiable portions of the project called work packages. The need to focus on the work package as the basic management unit means that the estimating process must now adopt a man-hour estimating approach because the labor unit cost approach provides insufficient information for detailed planning, scheduling, and control of manpower. As an example, man-hour estimating has an advantage in that it is a better approach to the evaluation of project manpower and trade requirements. *The resident field manager could have other titles, such as assistant project manager, deputy pioject manager, or field project manager.

Field Based Project Managemed

Similarly, at the work package level of estimating, the man-hour content approach frees management from the use of traditionally sized crews so that it becomes natural and effective to match crews to the requirements of a work package item. In order to establish the best crew sizes, many large firms more carefully monitor the performance of crews in relation to differing work conditions. This increasing focus on individual crew size management also complements the need for a more careful control of crews on the construction site as a whole. To accomplish this management objective, it becomes necessary to include both work package items and a consideration of crews into the scheduling process and to monitor progress and crew performance in terms of work package milestones and man-hour focused monitoring and cost control techniques. Finally, the increased fine detail with work package and crew scheduling needed at the field workface level requires a roll-up CPM and cost control focus which ensures that top management is not inundated with detailed information and receives only the relevant summary material. Thus in comparison to the small and medium-sized firms the large firm begins to use the WORK PACKAGE APPROACH I N PLANNING (function PS), SCHEDULING (function S4), and CONTROL (function R5) of the project. The FIELD PLANNING O F CREWS (function A4) becomes an important aspect of crew planning, owing mainly to the need to keep track of the PROJECT AND TRADE MANPOWER PROFILES (function A3) and its effective MANAGEMENT (function W3). In many cases the project site is both physically large and cluttered, so that the controlling of crew movements and the tracking of personnel generally becomes such an arduous task that FIELD MANAGEMENT RECORDING (function R8) is needed to address this problem. One common technique, for example, is to identify the different trades and levels of field supervisors throughthe use of different-colored hard hats. A complementary project management effort often arises at the large firm level because of the pressure exerted on the project team by a more professional business and management oriented client. In this situation the project management team is frequently required to prepare penetrating project reports and forecasts, especially on labor as a major manageable field resource. This project management requirement ensures that more specialist team members are included in the project team. Thus project management will initiate more sophisticated field management procedures and reporting techniques that focus on manpower management problems. At the large firm level all the manpower management functions are performed by the firm, as indicated in Figure 8.10. The extent to which they are formally performed, and the sophistication of techniques and methods used in their performance, will often depend upon the nature of the project, client demands, and the experience of the firm's project team members. Thus it is possible to find a variety of professional approaches to the performance of manpower management functions at the large firm level in the construction industry. This potential for a multilevel increase in the sophistication of performance of individual functions is suggested

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

W1 RELEASE STAFF TO PROJECT

MI SUMMARY PROJECT REPORTS

R1 HISTORICAL DATA BASE

P2 ACTIVITY DEFINITION

S2 ESTABLISH CONSTRUCTION SCHEDULE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W2 PRE-JOB LABOR CONFERENCES

M2 CURRENT PROJECT STATUS

P3 QUANTITY TAKEOFF

S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES S4 DEVELOP WORK PACKAGE DETAILED LOGIC

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES A4 DETERMINE NUMBER OF FIELD CREWS

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

M4 ACTIVITY ANALYSIS

R4 UPDATE AND REVISE WORK PACKAGE SCOPE

S5 DEFINE CURRENT PROJECT STATUS S6 REVISE CONSTRUCTION SCHEDULE

AS ADJUST CREWS A6 ASSIGN INDIVIDUAL WORK TASKS

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS W6 SOLVE HUMAN RELATIONS PROBLEMS

M5 LABOR ANALYSIS M6 WORK PROGRESS

RS LABOR PRODUCTIVITY R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

M8 FIELD INSPECTION

R8 FIELD AUTHORITY DOCKETS

P4 ESTIMATE LABOR CONTENT

P5 DEFINE WORK PACKAGE P6 DETAILED FIELD QUANTITY TAKE-OFF P7 ESTABLISH CREW REQUIREMENTS P8 PLAN WORKFACE LAYOUT

S7 SCHEDULE PROJECT CREWS S8 SCHEDULE CREW MEMBER WORK SEQUENCES Figure 8.10

W7 INITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

MONITOR M

Manpower Management Functions chart for the large firm.

RECORD R

Field Based Project Managemeat

8.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT

by the descriptive format used to describe each function in the Appendix. However, not every function at the large firm level is considered and performed to the full extent of its description, as shown in the Appendix. The detailed consideration of this aspect of manpower management, and a classification of the techniques used, is left to the companion volume in this series. The primary organizational and management objective of the Field Based Project Management approach is the transfer of management responsibility and authority from the head office to the field location. This changing management focus and emphasis is the result of the large technical and complex projects of the large firm environment, the size and location of these projects, and the management scope and expertise required by the client who is often located near the project. The impact of the Field Based Project Management approach on the project team organization is recognizable in terms of the significant growth in both the number of personnel located in the field a i d their range of professional and technical expertise. In this way, the project team can cope with the heavy field management commitment required at the large firm level. The Field Based Project Management approach ensures that a proper distribution of manpower management functions occur in relation to the responsibility focus and technical expertise of the individuals. As an example, the field project manager performs only those functions located toward the top of the Manpower Management Function chart and no longer performs such functions as those associated with detailed scheduling and crew planning. These functions are therefore performed by specialists, such as scheduling engineers and superintendents, at lower levels in the organizational chart. Thus the management roles of the project team members will reflect a changing management focus when contrasted with the management roles of the project team of the mediumsized firm. This is evidenced by the increasing number of functional plots on the MMF chart of the large firm, which involves many new specialists and technical personnel. The shrinking plot size of typical project team staff, such as the project manager, is further evidence of changing management roles in manpower management at the large firm level. The distribution of manpower management functions to the project team members is described on the manpower management functions plot for the large firm as shown in Figure 8.11. This MMF plot represents the division of management functions to those personnel on the typical project team organization in the construction environment at the large firm. The plot focuses primarily on the field project team, with several plots for personnel located in the head office. It does not consider the location of personnel associated with the engineering and design aspects of the design-construct project.* -

~

* Detailed manpower management function plots for professional engineers and technical designers is not covered in the scope of this book. These plots could be developed provided that the function titles and job descriptions in the Appendix are structured to reference the management processes of producing engineering specifications and construction drawings. As an example, the field planning functions (P5

Management Roles in Manpower Management

131

The hierarchical nature of the management plots in Figure 8.11 can be exhibited in a number of ways. First, for the head office project team, the manager of projects has line relationships with the head office cost engineer, scheduling engineer, and construction engineer and a staff relationship with the labor relations expert and estimator. The functional plots and organizational relationships of these head office personnel should be contrasted with the plots of those project team staff members located in the same relative positions (see Figure 7.8) in the medium-sized firm. It is clear that the head office cost, scheduling, and construction engineer and labor relations expert assume functional roles previously under the project manager and superintendent plots of the medium-sized firm. Both the estimator's and cost accountant's functional plots shrink at the large firm level, because of the specializing focus required in scheduling and cost control. Consequently, new engineering positions emerge relative to cost and scheduling activities. The manpower management role of the Field Project Manager or Resident Manager is greatly reduced in the MMF plot for the large firm. While the PM is still involved with many functions, the plot suggests that his responsibility focus is limited. This is essential at the large firm level because the project size, complexity, and technical requirements demand full management attention in terms of policy making, interaction with the client, project staffing, and overall project management. However, notice in Figure 8.11 that the project manager still maintains close contact with all the critical functions associated with project planning, scheduling, and control. Although his duties in these areas would not include, for example, detailed scheduling, as this is a specialist function of the field scheduling engineer, he would often provide direction through reviews and comments on schedules and resulting manpower curves. This would occur on a total project basis rather than in a specific area of the plant. However, if critical problems required the project manager's attention in a specific area, he would become involved in that area. I t is obvious that the project manager's position is becoming specialized in terms of manpower management. Once the project is released to the field, the project team manager has a limited manpower management role and hence the field functions are clearly allocated to a larger number of project team members. The general superintendent, cost, scheduling, and field engineers, and labor relations specialist all assume responsibilities previously under the project manager's or superintendent's focus in the medium-sized firm. This allows both the field project manager and general superintendent to allocate a greater percent of their time toward managing construction and client through P8) would focus on the size of the design teams required based on the number of drawings to be produced. We believe that the management aspects of the design and structuring of the engineering/design teams should be exposed as part of the manpower management problem. Thus some functions in the Appendix reference engineering and design in their job description. The majority of the functions, however, apply to the construction process rather than the process of producing construction drawings.

PLAN P

SCHEDULE

S

ALLOCATE A

WORK W

MONITOR M

Figure 8.11 Ideal division of manpower management functionsField Based Project Management.

RECORD R

Management Roles in Manpower Management

133

interfacing. The other field staff members, in a supporting mode, furnish cost and scheduling data for planning construction activities, plus collecting, processing, and analyzing progress information for field management's use in project control. The foremen assume their normal role, as their responsibilities are not significantly reduced but could be further refined to reflect general foremen and working foremen relationships. The Superintendent position in the project team organization has various staff levels (Figure 8.9). The top level, the general superintendent, has a functional plot in Figure 8.1 1, and the other levels are represented by a functional plot of a normal superintendent, such as an area or craft superintendent. Two plots are presented to further illustrate the changing manpower management focus of the superintendent. The general superintendent has a top-level management role in construction and therefore would be divorced from detailed crew planning, management, and daily field monitoring of construction activities and labor performance. These management areas are the traditional areas of responsibility of the superintendent, which matches that plot in Figure 8.11. The general superintendent is a field construction manager and is involved in more manpower planning and scheduling details and project control aspects because of the support expertise he gains from other professionals. The decreasing manpower management role of the Project Manager and the increasing expertise and limited focus of the superintendent position provides the atmosphere for the introduction of more comprehensive manpower planning and scheduling techniques associated with work package concepts, predicting trade and total project manpower levels, or controlling labor man-hours in the field. Because of the size, complexity, and technical nature of the large project, the superintendent still requires support in implementing these techniques. This is in part solved by a growth development of the field engineering and cost accountant positions with two new field personnel, the cost engineer and scheduling engineer. In terms of manpower management, the Cost Engineer is responsible for the performance of the functions associated with the following areas: field cost control and labor performance (M4, R4, M5, R5, and R7), cost trending (M3), forecasting of labor man-hours and dollars (M3), preparing and analyzing project status and summary reports (MI and M2), and generating labor data for historical data base development and maintenance (R1 and R2). The cost engineer assumes much of the functional responsibility of the cost accountant when contrasted to the cost accountant's role in the medium-sized firm. This changing focus results from an engineering philosophy as applied to project cost control because of the more comprehensive and sophisticated manpower management techniques which burgeon at the large firm level. The basic cost engineering position is both head office and field oriented. In the head office, the cost engineer's key role is the preparation of reports for top-level project and executive management. These reports are based on input from the field, so he maintains an administrative link with the field cost engineer. The cost engineer works closely with many other project team mem-

Field Rased Project Management

bers (see Figure 8.11), such as the project manager, superintendent, scheduling engineer, and cost accountant. In this capacity, he must have the ability to work with a wide range of individuals from top-level managers to the foremed level. The cost engineer is technically oriented with an engineering background. He has a basic knowledge of construction activities and their relationships to the labor cost component of a project. A detailed management plot of the cost engineer's functional duties is depicted in Figure 8.12. f

\ COST ENGINEER M1 SUMMARY PROJECT REPORTS Generates: reports showing forecasts to complete, revised labor costs, manhours to complete, variances between budget man-hours and forecasts Summarizes: problems or potential problems

R1 HISTORICAL DATA BASE Standardizes: typical project manpower charts, progress curves, unit manhour for work categories, craft mixes, productivity indicators

R2 GENERATE LABOR MANAGEMENT DATA

M2 CURRENT PROJECT STATUS

Impacts: revised man-hour forecast into project status, scope changes, and relevant cost adjustments Identifies: problems

Generates: project manpower curves, unit man-hour tables for work categories, progress curves, crew mixes Documents: unusual job conditions, requirements, and schedule impacts

PROJECT FORECASTING

M3

Forecasts: man-hour and labor costs to complete Impacts: budget and forecast for new scope

R4 M4

ACTlVlTY ANALYSIS

Suggests: activity analysis based on labor productivity analysis

M5

LABOR ANALYSIS

Analyzes: estimated unit man-hours against actual unit man-hours for work tasks

REVISE WORK PACKAGE SCOPE

Reassesses: field cost estimates and labor man-hours for work package R5 LABOR PRODUCTIVITY Documents: estimated unit man-hours against actual unit man-hours for work tasks R6 QUANTITIES IN PLACE Assigns: cost code to quantities placed for work item Inspects: daily progress in field R7

LABOR HOURS

Reviews: cost codes in labor man-hours charged to work item Inspects: location of crews in relation to work tasks

\ J Figure 8.12 Typical cost engineer manpower management job description plot.

Management Roles in Manpower Management

135

The role of the Scheduling Engineer in manpower management is comparable to the cost engineer in many respects, with the exception that the scheduling engineer performs scheduling functions, such as establishing construction sequences and schedules (S1 and S2), developing man-hour and manpower curves (S3 and S4), planning and scheduling work package activities and their logical sequences (P5 and S4), and statusing and revising project schedules (S5 and S6). The scheduling engineer shares functional performance with the cost engineer in the area of labor productivity and activity analysis (M4, M5, R4, and R5) and project status reporting and forecasting (MI, M2, and M3). This occurs because both engineers require information from these functions. The scheduling engineer has both a field and a head office location, which are administratively linked. The scheduling engineer assists and has contact with many project team staff members. His position is an extension of the field engineer of the medium-sized firm. At the large firm level, ficld engineering becomes highly technical in terms of interpreting specifications, drawings, and other activities necessary to support construction, and therefore becomes an area of expertise by itself. Scheduling becomes more specialized by virtue of the techniques and management demands for comprehensive scheduling systems, which focus on work package concepts, and therefore requires a specialist scheduling engineer. The scheduling engineer is technically inclined, with an enginesring background. He also has practical construction knowledge, which enables him to identify and analyze the construction components of a project and sequence them in a logical manner. A detailed job description is provided on the manpower management plot of the scheduling engineer in Figure 8.13. Figure 8.13a shows his involvement in project planning and scheduling, and Figure 8.13b shows his involvement in project scheduling control. The size of the project work force and the complexity of the union environment in closed shop construction often necessitates a full-time project labor relations expert. His plot would cover those functions related to work force management, labor relations, and industrial relations (W2, W3, and W4). He must be an active expert in industrial relations human management and have working knowledge of all jurisdictional areas and restrictive work practices. In the project definition phase, the labor relations expert performs labor reconnaissance ( P l ) duties in which he is responsible for collecting all information relative to the labor environment in the project area. In an open shop construction environment, the labor relations expert may be involved with training programs and schemes for recruiting manpower from all the crafts needed on the job site. In union areas, he will argue jurisdictional issues with the business agent of the union. He normally has an industrial relations background. His detailed job description plot in relation to manpower management is shown in Figure 8.14. In summary, the management roles of the project team members on the large firm project assume a more specialized and technical focus than those for project team members of the medium-sized firm. There are more

-$

S1 CONSTRUCTION SEQUENCE Assists: defining work activities and categories Develops: construction plan through logical sequencing of work activities Considers: impact of resources, materials, and equipment S2 ESTABLISH CONSTRUCTION SCHEDULE Develops: start/finishes dates of activities, planned progress curves Considers: milestones, man-hour content of activities Impacts: availability of resources, project priorities, subcontracts, work weeks, etc. S3 DETERMINE PROJECT AND f TRADE MAN-HOUR SCHEDU1,ING ENGINEER PROFILE

/'

Develops: total project and trade man-hour curves Adjusts: curves to match planned prcgress estimates

DETERMINE PROJECT AND TRADE MANPOWER PROFILE A3

Develops: total project and trade manpower curves Adjusts: manpower to match availability, plamed progress

S4 DEVELOP WORK PACKAGE DETAILED LOGIC Develops: detailed construction logic to match overall schedule time frames for work package activities Identifies: planned progress, man-hours, manpower for work package

P5 DEFINE WORK PACKAGE Specifies: work package required in relation to schedule

\

/

f J

(0)

Figure 8.13 Typical schedtiling engineer manpower management job description plot. ( a ) Project planning and scheduling. ( b ) Project scheduling control.

\

f M1 SUMMARY PROJECT REPORTS Generates: reports depicting progre'ss comparisons, productivity comparisons, manpower, and progress curves to complete Summarizes: problems or potential problems

M2 CURRENT PROJECT STATUS

/

f

Establishes: critical activities, progress achievements, productivity indicators, necessary schedule revisions, manpower to complete, and progress to complete Identifies: existing or potential problems M3 PROJECT FORECASTING

SCHEDULING ENGINEER

Forecasts: manpower curves to complete, progress to complete, impact of scope changes on schedule

M4 ACTIVITY ANALYSIS

R4 REVISE WORK PACKAGE SCOPE

Suggests: activity analysis to improve progress or performance for selected work tasks

Reassesses: construction logic, completion requirements of work tasks Reevaluates: progress and manpower targets

SS DEFINE CURRENT PROJECT STATUS

MS LABOR ANALYSIS

RS LABOR PRODUCTIVITY

Establishes: activity progress, activity forecasted completion dates, forecasted start dates, critical activities Impacts: trends and changes in scope

Compares: actual productivity with target productivity for work areas

S6 REVISE CONSTRUCTION SCHEDULE Revises: start and cornpletion dates, change construction logic Forecasts: new progress and manpower curves to complete

M6 WORK PROGRESS Assists: evaluation of physical progress for work tasks Inspects: progress achieved in work tasks

L

Documents: labor productivity value for work areas

R6

QUANTITIES IN PLACE

Reviews: quantity value achieved for work tasks

/

(b) Figure 8.13 (Continued)

Field Based Project Management

7

f

LABOR RELATIONS EXPERT P1 CONSTRUCTION RECONNAISSANCE

Assesses: labor availability, skill levels, local productivity, union rules, training requirements Quantifies: craft manpower availability, skill level

W2

PRE-JOB LABOR CONFERENCE

Develops: communications with unions, human and industrial relations, potential training programs

\ W3 WORK FORCE MANAGEMENT Recruits: craft labor of all types Develops: methods to screen applicants, check work credentials, wage structures W4

ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS

Enters: jurisdictional dispute areas Establishes: skill classifications

L Figure 8.14 plot.

Typical labor relations expert manpower management job description

personnel and the management function overload of the project manager is reduced considerably. The MMF plots separate the staff into areas of responsibility that are oriented toward either construction, engineering, or project management.

J

CHAPTER

9

The Project Team Structure: Total Field Autonomy

A desirable objective in project management is to create a management organization and environment that efficiently melds the project definition, field construction, and project management components into a single holistic project team. Its achievement can be considered as the final culminating phase in the design, development, and integration of the project team structure. In achieving this desirable objective, however, it is necessary to overcome the problcms associated with the physical separation of the construction site from the head office, and to operate in a construction environment that either encourages and rewards its attainment or demands its establishment as a necessary condition for construction management. Previous chapters have focused on the development of project team structures as a variety of self-generated and imposed management and organizational solutions aimed at strengthening the integration of the project management components and minimizing the problems generated by the physical separation of the head office and field site. In contrast, the Total Field Autonomy approach to project management strives for total project management integration and the elimination of head officesite location constraints. In the Total Field Autonomy management approach, the project management team becomes a fully integrated and balanced team with flexibility and authority to operate autonomously at the field site. Although originating in a head office, during initial engineering and design stages, it gradually moves out into the field and assumes full management control of the project. All normal head office functions can be performed in the field and total field autonomy can be achieved with the authority of a resident executive project manager. This form of project team structure and management approach completes the evolutionary development that begins with independent head office and field components (Chapter 6 ) , evolves next to the partially integrated head office and field organization via the

rT-r

Total Field Autonomy

FINANCIAL. PROJECT SCOPE REQUIREMENTS FINANCIAL. TECHNICAL DATA, CLIENT TECHNICAL DATA AND CHANGES PROJECT STATUS AND PROGRESS i PROJECT STATUS

ENGINEBRIiVG A N D i AND PROGRESS .i..DESlGiQ ...........DEVEIOPblENT ..................

HEAD OFFICE

j CONTINUOUS DATA UNTIL :PROJECT TEAM TRANSFER TO FIELD

FIELD LOCATION

I

PROJECT DEFINITION

PROJECT DEFINITION- FIELD OFFICE PLAN - Estimate refinements based on work order and trends SCHEDULE AND MANPOWER IMPACT ‘Y Detall work scheduler Detailed manpower ALLOCATE planning

PLAN- Rough or detailed estimate development

I

FIELD CONSTRUCTION PLAN SCHEDULE

)

ALLOCATE

z a ~ o ~ t i and o n labor

RECORD

Historical data development Data processing for field

---)

)

SCIENTIFIC MANAGEMENT

-

APPLICATION

Crew management Field monitoring

ACTIVITY

PROJECT MANAGEMENT- FIELD MONITOR RECORD SCHEDULE RECORD

1

Detail crew planning and scheduling based on work order Number of crews and adjustments

PROJECT MANAGEMENT

RECORD

I

SCHEDULING & MANP O W E R GUIDELINES & OBJECTIVES

ONE WAY FLOW OF PROJECT STATUS - PROGRESS REPORTS TO EXECUTIVE MANAGEMENT

-

] -

Progress and status and data processing Status and revise

- Generate Labor data for project labor data base

1

Figure 9.1 Project team structure: Total Field Autonomy management.

traveling project manager (Chapter 7), moves to the more field oriented focus (Chapter 8), and finally becomes totally autonomous in the field environment. I n this final management approach decision problems are handled in the field and in direct consultation with the client as required.. Decisions can therefore be made in a timely manner and solutions enacted

quickly. A general schematic representation of the Total Field Autonomy project team structure in relation to the head office and field components i s shown in Figure 9.1 (superimposed on a copy of Figure 5.3) for reference. The relationships in Figure 9.1 are intended to show that although the head office maintains many of the normal head office functions, the field can and does execute all the functions performed in the head office. In many cases, the head office i s completely de-staffed once the field project team i s established. In this instance, the head office i s mainly concerned with preliminary planning, scheduling, and control plus engineering and design

when i t applies. The Total Field Autonomy approach to project management emerges, most often, in the large firm environment, and the discussions to follow

The Construction Environmeot

9.1 THE CONSTRUCTION ENVIRONMENT

will focus on this environment. However, only the major differences from the large firm environment and organizational structure as related to the Total Field Autonomy concept will be discussed. Specific manpower management functions and the management personnel who perform these functions will be highlighted in terms of the significant differences between the Field Based Project Management and Total Field Autonomy concepts. An important ingredient in the construction environment which fosters the Total Field Autonomy approach to project management is the exacting nature of the demands for sound project management practice brought to bear on the contractor by the client. This is especially apparent in a construction market wherein the client is committing vast sums of money toward a complex facility that must be phased into production according to a predetermined and constrained schedule. In this financial environment clients are vitally interested in financial expenditure predictions and in ensuring that project cash flows correlate well with work progress and value of construction in place with construction dollars spent. The client is often well versed in current management techniques and will demand the maximum project management effort from the constructing firm. Consequently, the client will actively participate in the project management process. In this type of environment the managing contractor must not only demonstrate that he has the technical expertise to perform the work but, equally as important, he must also have the management expertise to execute the project on schedule and within allowable budgets. Thus the contractor must be able to sell his management systems to the client as well as his technical abilities. Even though many projects are cost plus and the contractor is assured of recovering his costs, he endangers his reputation and chances for more work if he does not perform satisfactorily. Many clients in this area are directly involved in the utility, petroleum, manufacturing, and the mining and metals industries, and have a considerable knowledge of process technologies and performance requirements. The project size, complexity, and location of the projects generated by such clients, coupled with the constructional need for the highly productive use of large labor forces over prolonged durations, often leads these clients to insist that they closely supervise all construction, especially that related to process lines. Thus the client's knowledge in all aspects of financial, technological, and managerial processes, coupled with the interest in the close maintaining of the contractor's field construction and project management processes generally ensures that the contractor fields a fully autonomous project management team. The construction environment, and project size, which encourages this final stage in the development of the project team structure, is generally met at the large firm level in the construction industry." The firms that utilize this management mode are characteristically the same as the large firm in terms of company *However, it may emerge at any time or level, depending on the pressure brought to bear by the client and the management attitude, expertise, and desires of the key personnel within the firm.

Total Field Autonomy

organizational structure, type of project portfolios, and professional and technical employment levels, as described in Section 8.2. The Total Field Autonomy approach is most often associated with a large firm acting in a construction management mode. As construction manager, the firm's project responsibilities could vary considerably. As an example, the contract manager could have no direct construction responsibility for any phase of the work and would only manage all facets of the project from inception to completion, including engineering and design as required. Alternatively, the managing contractor could have limited project responsibility in engineering and design, and act mainly as the manager of the construction and start up efforts. Finally, the firm could have overall project management responsibility plus some engineering and design functions as well as being the prime contractor. It is evident that depending upon the needs of the project and the client's interests, a broad range of responsibilities can be assigned to the firm operating in a construction managcment mode. Regardless of the degree of direct project responsibility, the firm selected by the client as the contract manager must cxhibit an expertise in both project and construction management. However, the degrce to which the contract manager can impose his management system on those contractors actually performing the various engineering, design, and construction functions depends heavily on the client's position and desires and the proportion of the project work that the contract manager is performing with his own personnel. In terms of his own forces, the contract manager can utilize his own managcment system. In the case where, at the client's insistence, other construction management systems are selected, the other participating firms are often forced to modify their management systems in order to comply with the contract manager's systems for executing the project. If the client does not support the contract manager's system, then the contract manager will have difficulty executing his responsibilities. Hence the client's perception of the required level of management system coordination plays a large role in the project management process. Although the contract manager establishes the overall project management systems, there will be times, especially in a lump sum bidding situation, when he will have little control over the method by which some of the contracting firms operate. In these instances the subcontractor could already be operating, or choose to operate, his project team in any one of three modes: (1) medium-sized firm (TPM) ; (2) large firm (Field Based Project Management); or ( 3 ) Total Field Autonomy. The managing contractor must then ensure that sufficient information is made available to him by the subcontractor when he produces overall project management reports. Thus the more the contract manager's system is utilized, the more control the managing contractor can maintain. His leverage in this situation will depend on the client's attitude to, and insistence on, the use of his system. The number of firms who operate in the construction management mode are relatively few because of the huge management commitment required by the firm.Most of these lirms may also operate on other proj-

Organizational Structure: Total Field Autonomy

143

ects under the Field Based Project Management approach (especially when the location of the project is not isolated relative to the home office). In this case, the actual management approach of such a firm would be based on a mixture of theField Based and Total Field Autonomy project management concepts. The firms in the Total Field Autonomy category generally commit significant sums of money for system development in all areas of management concern, including cost, scheduling, and field construction systems. In addition, a continuous effort is maintained to reevaluate and revamp old systems and create new and more efficient systems. Key management personnel in these firms must be progressive enough to accept changes and must always be seeking new and better ways of operating. Some clients are extremely sophisticated in their business, management, and decision processes, and this sophistication forces the contractor to be continuously seeking for, and to be aware of, new innovations which will keep them one step ahead of the client. This type of attitude makes the Total Field Autonomy approach viable, because the firm is willing to commit the resources necessary to providc for the best possible management techniques. If these techniques prove successful, the firm builds;solid reputation as a management contractor and also makes enough profit to support their system development programs. The cost plus fee contract is the most common approach in the Total Field Autonomy enviroment. Although the contractors involved are reimbursed for all costs, the impetus for sound project management lies in the reputation the contractor develops from completing projects on schedule and within allowable budgets. Furthermore, incentives are often available provided that certain agreed upon milestones are achieved. These incentives can make these projects extremely profitable. The Total Field Autonomy approach is not exclusive to cost plus projects. I t is employed on lump sum (negotiated) contracts and is often most effective in this situation. The basic organizational structure of a firm operating in the Total Field Autonomy mode of project management is not significantly different from that commonly met in the large firm. The departmental approach is maintained as the best organizational approach to the management of technical and speciality areas, and within each department there exists many functional divisions to suit the needs of the organization as a whole, and the firm's specialized work. Each department will have its own unique organizational structure and will be given the leeway to establish its own policies provided that these policies meet the firm's overall business and management objectives. The main general management functions are each handled by a department so that the distinction between business oriented and project oriented functions can be made. The definition and number of these general management functional areas may change due to the nature of the firm's speciality (e.g., power) and a finer definition of management responsibility. Changes of this nature do not significantly affect the project management approach. -

- -

~

9.2

ORGANIZATIONAL STRUCTURE: TOTAL FIELD AUTONOMY

-

-

Total Field Autonomy

I

OWNERSHIP INVESTING

1

Lrl

'7 PRACTICING

CORPORATE ADMINISTRATION

I

I

ENGINEERING1 MANAGEMENT

Figure 9.2

COST

CONSTRUCTION

Organization chart for large firm: design-construct,

The company organization structure for a firm in this category might be similar to Figure 8.2b. It is shown here as Figure 9.2 for reference. The important aspect of this chart is the separation of the project oriented functions into individual departments. Project management must be a separate functional entity, owing to its role in the project management process. Generally, this department is a composite of personnel from the other project oriented departments. For instance, the engineering and design discipline will have personnel that are in project managementsimilarly with planning/cost, construction, and procurement personnel. By drawing their project managers from the various departments, the project management group can staff the project team organizations with personnel having a good basic range of expertise. These project manager types are usually the more professionally oriented and perceptive individuals who have demonstrated their ability to manage. The departmental organization would not differ significantly from those presented in Section 8.2 (see Figures 8.3 and 8.4). Because these firms commit more resources to system development, separate divisions often arise within each department which specialize in systems analysis and development. The departmental approach to the organizational structure of the firm is essential at the Total Field Autonomy level. It is through this approach that the project oriented functions can be broken into discrete functional categories wherein professional technical or functional managers can develop and cultivate an area of expertise. This specialization attribute becomes important when the project team is formulated because the immense nature and complexity of the projects encountered demand specialized talents in order to execute the project management process. As exemplified in previous statements, even the project manager role becomes specialized.

The Project Team: Total Field Autonomy

9.3 THE PROJECT TEAM. TOTAL FIELD A~~ONOlMY

145

The project team organization that develops in the implementation of the Total Field Autonomy approach to prdject management is built up around a combination of project technical or functional area managers drawn from the various specialty and functional departments within the organizational structure of the firm (as shown in Figure 9.2). Once a specific area manager is assigned to the project team, he becomes functionally responsible to the project team. He maintains an administrative link to his department but only through a senior project team member (who is a project manager type) who represents the department. The number of assistant project managers or area managers in the project team depends on the size of the project, its nature, and the desired level of management control as established by both the firm and client. The organizational and management approach to project team development, drawing managers from the various departments, is similar to the approach used by the large finn (as illustrated in Figure 8.5). The organizational structure of the project team is designed with considerable care and detail, as it must represent the optimum approach to managing the project. The structure may changc forms several times before the final organization is settled upon by the client and the firm.* The initial phase of project team development is to establish the project management staff. This includes the selection of the project manager and key assistant project managers.t These key personnel are selected in agreement with the client, and their release from the project often requires client approval. These key personnel often undergo an intensive training and orientation program in collaboration with key staff from the clients' own organization. A major function that they then perform is the design (and management) of the size and organizational growth of the project team itself. In some cases the contractor's project team is melded into the clients onsite project supervision management team so that in fact a single totally integrated project team emerges. The assistant project managers are appointed as managers of their functional areas when the project team is designed. For example, as shown in Figure 9.3, the project management level consists of five assistant project managers reporting to the project manager. The disciplines represented in this illustration are engineering and design, planning and controls, procurement, construction, and administration. The project manager is often an executive vice-president and is selected carefully because of the criticality of his position and the authority he holds. The project manager then appoints his project management staff in consultation with his executive counterparts. These key personnel are drawn from the project management department and have a background in the area for which they will have direct responsibility. As an example, the assis*The client and managing contractor are considered separate entities for the examples of project team design in this section. Furthermore, the engineering/construo tion project is used as the basic type of project for illustration. t The terms project director and deputy project director are also used in practice to describe the project management level.

Total Field Autonomy

MANAGER

I ASSISTANT PROJECT MANAGER- PLANNING AND CONTROL

ORGANIZATION F I G U R E 9.6

I MANAGERDESIGN

ORGANIZATION FIGURE 9.4

I

ASSISTANT PROJECT MANAGERADMINISTRATION

1 ASSISTANT PROJECT MANAGER-

- PROCUREMENT

ASSISTANT PROJECT MANAGERCONSTRUCTION

ORGANIZATION

CHART,

Figure 9.3 Basic project management level organization for both home office and field-Total Field Autonomy approach.

tant project manager of engineering and design most probably will have obtained his background through the engineering department. The basic project management level positions remain the same in terms of both the home officc and field. This practice allows for easy transfer of responsibility from the home office to the field. The particular person occupying the position may, or may not, transfer to the field, with the exception of the project manager, who normally relocates to the field. Once the project rnanagcment level is designed and staffed, the remaining segments of the project team are designed and staffed. The design of the project team is based on a management control philosophy established by the project management staff. A common philosophy is to divide the project into discrete control areas based on either geographical locations and/or production units. For each control area a subset of project teams is created, with the necessary disciplines to perform all requisite functions pertinent to the control area. Consequently, when the assistant project managers are designing the structure of their organizations, the structure must be consistent with the control area philosophy. The organizational design developed by any assistant project manager for his groups is subject to the approval of the project manager, department managers (home office only), and the client. This practice is relatively common when employing the Total Field Autonomy approach, because the design of the organizational structure identifies the number of positions to be staffed. The total number of positions can be translated into project estimates of the man-hours required to engineer and design the project and execute construction in the field. There are other factors that influence the size of the project team staff in any particular functional area, such as the number of drawings required, the direct field manhours to be controlled, or the number, type, and frequency of project management reports to be generated.

The Project Team: Total Field Autonomy

ASSISTANT

PROJECT MANAGER E N G R .

ENGINEERING MANAGERIN HOUSE E AND D

ENGINEERING ADMINISTRATIVE

I COORDINATION A N D INTERFACE WITH OUTSIDE E N G I N E E R I N G A N D DESIGN F I R M S

AREA X

AREA MANAGER AREA Y

I PROJECT

I

ENGINEER UNITS 1. 2, 3

PROJECT ENGINEER UNITS 4, 5. 6

1 PIPING

I

ELECTRICAL STRUCTURAL INDUSTRIAL COORDINATION

-4 I 71

LEAD E N G I N E E R S

LEAD DESIGNERS

ENGINEERS

DESIGNERS

I -I

DESIGNERS

Figure 9.4 Typical engineering/design project team in home office-Total Field Autonomy approach.

In the head office, apart from the general project management group, the primary discipline is the engineering and design group, whereas the construction discipline is the primary group in the field (augmented where necessary by special technical groups who focus on the installation and testing of specific process lines). The other groups are considered support or service groups. Each group, however, answers directly to the project manager through the assistant project manager for that group. The interaction between service groups and the engineering or construction disciplines can vary from firm to firm, and even between projects within the same firm, depending on the size and complexity of the project. Several typical illustrations are shown in Figures 9.4 through 9.6. The control area concept is illustrated in both the engineering organization, Figure 9.4, and the construction organization, Figure 9.5. The engineering organization, Figure 9.4, is comprised of three basic groups: (1) outside engineering and design, ( 2 ) administration, and ( 3 ) in-house

PROJECT MANAGER I

I

CONSTRUCTION MANAGER AREA Y

SUBCONTRACT ADMINISTRATION

I

CONSTRUCTION

CONSTRUCTION MANAGER AREA Z

SUPPORT MANAGER

-

ENGINEERING MANAGER

ASSISTANT PROJECT MANAGER

M

~

GENERAL GENERAL SUPERINTENDENT SUPERINTENDENT ~ ~ ~ UNITS ~ 4, 5. 6R UNITS 1. 2, 3

-

SURVEYORS

COST AND SCHEDULING ENGINEERS

Figure 9.5

ASSISTANT SUPERINTENDENT

GENERAL SUPERINTENDENT UNITS 7, 8, 9

FIELD ENGINEER

","l$,"ghS

METHODS ENGINEER

Typical construction project team-Total Field Autonomy approach.

COST1 SCHEDULING AREA MANAGER

1 SUBCONTRACT ADMINISTRATOR

The Project Team: Total Field Autonomy PROJECT MANAGER

PROJECT MANAGERPLANNING

I

\ SCHEDULING ENGINEER COORDINATION

COST/SCHEDULING COSTISCHEDULING AREA MANAGER AREA Y

UNITS 1, 2, 3

AREA MANAGER AREA X

COSTISCHEDULING AREA MANAGER AREA Z

COORDINATION

UNITS 7. 8, 9

STUDIES, ETC.

-

UNITS 4, 5, 6

COST ENGINEER

Figure 9.6 Typical planning and controls organization in field environment-Total Field Autonomy approach.

engineering and design. Each group is headed by an engineering manager. The in-house engineering group is further dissected into control areas under an area manager. The control area may have several production units associated with it. Depending on the size of the production units, the control area may be segmented into units under the direction of a project engineer. The next level of staffing is at the respective engineering and design groups, such as structural, electrical, piping, and mechanical. Each engineering discipline will have its own organizational structure, including a lead engineer and lead designer, plus the engineering and design groups producing the specifications and drawings. In the home office, each engineering discipline will have its own organizational structure. As shown in Figure 9.4, for example, only a segment of the staff will be working on units 1, 2, and 3. The organizational structure established for the construction effort in the field is designed in much the same manner (as illustrated in Figure 9.5) as the assistant project manager of construction reports directly to the project manager. Reporting to him are the construction managers of each area. The construction manager of any given area is often given the authority to design his own area organization as long as it meets the

Total Field Autonomy

objectives of the overall project team design philosophy. For instance, the group manager will have one or more unit managers or general superintendents. The construction manager will also have a materials manager, cost/scheduling manager, office engineer, and office manager (just to name a few functions that are represented). The unit general superintendent will have under his control his main construction constituents, such as the mechanical, electrical, civil, and piping superintendents, plus their staffs down to the foreman level. Each unit will also have a unit field engineer and/or methods engineer, cost/scheduling engineers, and material control personnel. Certain positions are not staffed at the area level but are available to the unit manager, such as the technical engineering and design staff or painting and insulation superintendents. The organizational structure of the support groups (such as that of planning and control, or procurement) is designed to support construction. Consequently, their organizational structures will also be designed in terms of the project control areas and unit segmentation of work effort. As illustrated in Figure 9.6, the planning and controls manager has area cost/scheduling managers, who, in turn, have unit cost/scheduling personnel. The cost/scheduling manager position for area X is also shown on the construction organization chart. The purpose of this approach is to lend cost/scheduling expertise to the unit general superintendent, yet have the capability of developing project management reports which roll up from the unit level to the area level, then finally up to the project level. In this way, the assistant project manager of planning and control can report project level problems (such as project-wide shortage of a particular craft) directly to the executive project manager. At the unit level, problems related to schedules, progress, and productivity can be discussed and solved directly with the unit general superintendent. This approach can be applied to the other support groups. Procurement will have expediters, buyers, and purchasing personnel. Field engineering will have engineering and design personnel for each major design discipline, material control specialists, and engineering specialists. Any other functions appearing at the project level will be staffed accordingly and all will follow the control area concept. Because the client participates heavily in the project management process, he will have a similar organizational approach. As mentioned previously, each project manager will often have a client counterpart. The client will also have an organization established at the area level. The construction manager will have a "client project manager" to interact with at the area level. The client's area organization will include a small technical engineering staff plus a cost/scheduling staff. These personnel will be responsible for ensuring that the specifications are followed, approving design changes, and analyzing progress and performance, to name a few functions. The client's area project manager reports to the client's main overall project manager. The size and complexity of the client's organization depends on project size, their own management capacity, and the confidence they have in the contractor's ability to perform the work.

Manpower Management Fnnctions: Tohl Field Autonomy

9.4 MANPOWER MANAGEMENT FUNCTIONS: TOTAL FIELD AUTONOMY

151

The number of control areas and units is established based on the size and complexity of thc project. The larger the project, the more control areas are specified, and the greater the number of unit managers required. This follows because the control philosophy is directed at achieving an optimum level of control for the field manhours involved in an area. On smaller projects the number of areas will be limited and the staff positions decreased. In this case, the organization chart would be similar to thc large firm except that there would still exist a project management level. The number of project managers would be less, and there may be some overlaps of responsibility, such as one project manager who is responsible for both planning and controls and procurement. The project team organizational approach discussed herein is a typical example of the philosophy of the Total Field Autonomy concept. The project team design is based on the control area concept, which attempts to optimize project and construction management through limiting the control area to a size that can be managed efficiently and effectively. All organizational levels involved in the project adopt this concept into their organizational structures. In this way, the project team is easily integrated to provide for the most effective project and construction management control at any level of reporting. Problems can be handled in a timely manner, decisions made, and solutions implemented without loss of time waiting for approvals. Furthermore, because all functions are located in the field, and the proper management authority is in the field, little interaction with the head office is required.* At all levels of project and construction management, the client can be approached and queried in the field when critical design problems arise and consequently decisions may be made without long delays. The manpower management functions performed by the project team described in Section 9.3 are inclusive of all the ideal manpower management functions. Consequently, in terms of the basic manpower management functions performed at this level (see Figure 9.7), there is no noticeable difference from that for the Field Based Management approach. The significant difference lies in the increasing focus applied to many of the manpower management functions. This increasing focus is evident from the changing complexity of the project team. As discussed in Section 9.3, a project management level emerges so that there is a substantial increase in management power and potential available to the project. Furthermore, the project team design and structure is based on project control areas, with each control area requiring its own specialist team members. These subtle changes in the project team organization are the result of increased project size and complexity, which ensures a significant manpower content and, even more important, increasing demands from the client for effective project management. Finally, the firm itself recognizes the need for greater emphasis on project management in order to maintain credibility in the industry and a competitive project manage-

* Technical engineering and design support will be required throughout construction and project start-up for the design-construct project with interactions between the head office and field continuing at technical questions arise.

PLAN P P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

P2 ACTIVITY DEFINITION

S2 ESTABLISH CONSTRUCTION SCHEDULE S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

P3 QUANTITY TAKE-OFF

ALLOCATE A

SCHEDULE S

P4 ESTIMATE LABOR CONTENT

S4 DEVELOP WORK PACKAGE DETAILED LOGIC

P5 DEFINE WORK PACKAGE P6 DETAILED FIELD QUANTITY TAKE-OFF P7 ESTABLISH CREW REQUIREMENTS

S5 DEFINE CURRENT PROJECT STATUS S6 REVISE CONSTRUCTION SCHEDULE S7 SCHEDULE PROJECT CREWS

P8 PLAN WORKFACE LAYOUT

S8 SCHEDULE CREW MEMBER WORK SEQUENCES

Figure 9.7

WORK W

MONITOR M

RECORD R R1 HISTORICAL DATA BASE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W1 RELEASE STAFF TO PROJECT W2 PRE-JOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES A4 DETERMINE NUMBER OF FIELD CREWS

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS W6 SOLVE HUMAN RELATIONS PROBLEMS W7 INITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

M4 ACTIVITY ANALYSIS

R4 UPDATEAND REVISE WORK PACKAGE SCOPE

M.5 LABOR ANALYSIS M6 WORK PROGRESS

R5 LABOR PRODUCTIVITY R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

M8 FIELD INSPECTION

R8 FIELD AUTHORITY DOCKETS

AS ADJUST CREWS A6 ASSIGN INDIVIDUAL WORK TASKS

Manpower Management Function chart-Total Field Autonomy approach.

Manpower Management Functions: Total Field Autonomy

153

ment approach. Thus project management will initiate more sophisticated management procedures and reporting techniques that focus on manpower management problems, whenever these methods seem appropriate and will often take the initiative in breaking new ground and in developing new techniques. Since all basic manpower management functions are performed under the Total Field Autonomy approach, the extent to which these functions are formally performed and the sophistication of techniques and methods used in their performance are critical to any comparison with the Field Based Management approach. Consequently, this section will highlight several of the key differences in function performance. Project team design, implementation, and control is a dynamic and ever-changing process under the Total Field Autonomy approach. While project team design considers the structure, desired level of management control, and manpower growth patterns, it also considers management efficiency and effectiveness. The later component is a distinguishing characteristic of the Total Field Autonomy approach. If the project team is not functioning properly as designed, changes are made. These changes can occur at any stage of project execution and are not necessarily associated with the initial planning stages, which is often the case under other management approaches. This continuous reevaluation of the project team's management performance creates the dynamic aspects of the project team design functions (functions A l , A2, and W2). A second area of noticeable change in function performance is related to the work package approach. Although the large firm utilized this approach, its techniques are rather loosely applied. The Total Field Autonomy approach concentrates on work packages in terms of a documented work order that precisely defines the work package. The key is the documentation of the work package as a work order. This work order is subsequently tied in to all company scheduling and control procedures. In this way, the work package becomes a traceable component of the construction effort from its inception through to its completion. An increased management focus is revealed at this management level, especially when viewing the control aspects of construction management relative to crew performance and activity progress. In the former case, crew performance (LABOR ANALYSIS and LABOR PRODUCTIVITY) is tied to a definite performance indicator which is well defined and considered manageable. In the later case, activity analysis looks at the construction method in relation to crew size, crew production, crew location to the workface, material and equipment locations, and material flow routes. In addition, activity analysis looks carefully at indicators of the effective use of the crew. This is often done in terms of evaluating aspects of "needless" work effort that can be eliminated by better field management of the work force. This type of control analysis is considered essential to streamline construction operations and improve productivity and progress, thereby reducing labor costs and ensuring that schedules will be met. The preceding paragraphs highlighted three basic critical differences

Total Field Autonomy

9.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT: TOTAL FIELD AUTONOMY

between the Total Field Autonomy approach and the Field Based Management approach. There are other differences which will be considered when reviewing the detailed manpower management practices of each management concept. This analysis is left to the companion volume of this series. In the final form of project team development, the Total Field Autonomy approach maximizes the team concept as the best method of project management in the environment in which it most commonly operates. The increasing focus on manpower management problems expands the management burden to its ultimate capacity. Consequently, the greatest number of project team staff appear at this level of project team development. Among this collection of staff appear many specialists (even at the project manager level) as well as the traditional construction personnel. Consequently, the allocation of the various manpower management functions to the various project team members is carefully considered during project team design and its development and control. Furthermore, the allocation of functions is continuously reviewed as the project progresses to ensure that the proper allocation of functional responsibility exists and a project team member's span of control is within acceptable limits. The allocation of manpower management functions to the project team members is described on the manpower management functions plot shown in Figure 9.8. This plot represents the design-construct type project. A specific project team member is shown on the plot only when his functional responsibility can be clearly defined. In Figure 9.8, this would include the project manager, quantity surveyor, estimator, cost/ scheduling engineer, methods engineer, cost accountant, labor relations expert, superintendent, foreman, and timekeeper. The remaining functions are considered as being performed by the project team. Consequently, for those functions that are covered by a project team plot, it is difficult to isolate functional responsibility to a single individual, which indicates that many functions are performed by a team of individuals. Thus most problems and decision processes are handled by carefully selected groups of managers and supervisors, each problem and decision process having its own mix of managers/supe~isors.It should be noted that a project team member with an isolated plot may also perform functions in the plot covered by the project team. The role of top management is completely limited in focus, as indicated by the plot of the executive project manager and the project management level in Figure 9.8. In terms of manpower management, the executive project manager performs only those functions associated with the critical problem of project team design, staffing, and control and the review of project level reports on status, progress, and labor productivity. This management focus applies to each of the engineering, design, and construction areas. His only participation in other manpower management functions would be on a management-by-exception basis as critical problems arise that require executive level action. Otherwise, the project management level handles the majority of manpower management problems for their functional areas, and the executive project manager is alerted only when his decision rcsponse is requested.

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

MONITOR M

FIELD CREWS SUPERINTENDENTS

INDIVIDUAL WORK TASKS

RELATIONS PROBLEMS

INITIATE INDIVIDUAL WORK TASKS

PROJECT TEAM GROUP PLOT

Figure 9.8

Ideal division of manpower management functions: Total Field Autonomy approach.

RECORD R

Total Field Autonomy

The project management level has been described in Section 9.3 in terms of overall project responsibility. In relation to manpower management, the project management level's role includes project team design, staffing, and control for their individual responsibility functional areas. In addition, project management level personnel are involved with and perform functions which produce those reports on project status and performance that are pertinent to their areas of expertise. This level of management is still divorced from detailed manpower management problems, with the exception of manpower related items which require their direction and decision making authority. Thus personnel at the project management level (including the executive project manager) serve as the directing members and decision-making body of the project in an overall top-level capacity. This level of management organization and expertise should be contrasted with the project manager's role in the small, mediumsized, and large firm environments in terms of the growth of project management as a professional area. The project team plot in Figure 9.8 represents a critical concept that emerges at the Total Field Autonomy level, the team decision-making approach. The role of the team in manpower management affects all levels of function performance, beginning with project definition and continuing through field construction to project management. A team of two or more project team members is involved in function performance and, as a result, many meetings, some formal and others informal, begin to emerge with frequency. These meetings occur at all levels in the management hierarchy and are often scheduled on a regular basis when performing certain manpower management functions. The work package technique is employed to its full potential at the Total Field Autonomy level because of the team approach. As an example, many project team members are involved with the DEFINITION OF WORK PACKAGES (P5 ) , the SCHEDULING OF WORK PACKAGES (S4), and the CONTROL O F WORK PACKAGES (R4).In terms of WORK PACKAGE DEFINITION (P5), an area engineer is required to interpret drawings and specifications; a superintendent and a methods engineer establish the scope and work task requirements as well as deciding upon a construction method or possible alternative method. A cost/ scheduling engineer will evaluate the labor and material cost impact of each construction method against a budget and assign the cost code for the -proper allocation of man-hours. The cost/scheduling engineer, together with the superintendent and methods engineer, will determine the labor performance targets to be set for the work package based on the most economical construction approach. Once these steps are completed, the work package will be reviewed and accepted by an area engineer or general superintendent. Thus a team effort is employed to perform the WORK PACKAGE DEFINITION function (P5). The cost and scheduling functional areas are integrated at the Total Field Autonomy level by virtue of the manpower management role of the cost and scheduling engineer shown in Figure 9.8. The cost/scheduling engineer is readily versed in all aspects of cost and scheduling engineering.

Management Roles in Manpower Management: Total Field Autonomy

157

This is important because these functions are interrelated. For example, changes in scope must be identified in terms of both cost and schedule impact. Work packages require cost estimating analysis and scheduling impact analysis in reference to allowable budgets and target completion dates. These activities are best performed by the same individual to ensure a thorough and comprehensive examination of all costs and scheduling implications. Because the work package concept focuses on optimizing construction methods, and crew performance is often improved through method analysis, a new construction engineering expert emerges. He is identified on the MMF plot as a methods engineer. The role of the Methods Engineer in manpower management focuses on those functional areas that are oriented predominately toward construction method analysis. This would primarily include activity and crew planning (P5, P6, P7, and P8) and control (M4, M5, and R5 ) . The method engineering position first appears at the Total Field Autonomy level as a result of highly sophisticated construction planning and control techniques that continually focus on the detailed components of a construction operation. Since the construction method is one of these components, a full-time effort is required and assigned to a method engineering specialist. f

\ P5 DEFINE WORK PACKAGE

S4 DEVELOP WORK PACKAGE DETAIL LOGIC

Analyzes: construction method alternatives Designs: optimum construction method

Identifies: construction methods selected for various work packages Assists: scheduling when construction method warrants detailed scheduling

M4 ACTIVITY ANALYSIS Analyzes: current construction method in use Identifies: wasted time, delays, Location of men, equipment, etc. R4 UPDATE AND REVISE WORK PACKAGE SCOPE

P7

ESTABLISH CREW REQUIREMENTS

METHODS ENGINEER

Notifies: changes in construction methods as impacts scope of work package

Specifies: construction method P8 PLAN WORKFACE LAYOUTS Integrates: construction method with location of men, equipment, material, material supply routes, etc.

L Figure 9.9 Typical methods engineer manpower management job description plot.

Total Field Autonomy

The methods engineer performs functions previously covered by many diffcrent project team members at the various levels of project team structure. His position is a mix between the superintendent and field engineer, because he has both extensive practical construction experience as well as a technical engineering knowledge. A detailed plot of the types of duties and tasks the methods cngineer performs is shown in Figure 9.9. The labor relations area also expands at the Total Field Autonomy level. It not only includes those industrial relations areas discussed in Section 8.5 but expands to include public relations for the project. This would cover such areas as employee recreation programs, site tours, project functions, and performance programs, just to name a few. All these activities are directed at developing a project team spirit that is requisite to the successful integration of the project team. In summary, the roles of project team members in manpower management are designed to strive toward the integration of the project team. This is accomplished through a team oriented approach when pcrforrning a broad range of management functions. The superintendent and foreman plots remain basically unchanged from previous levels. However, these field managers often participate in other manpower management functions on a team basis. Finally, with the authority of the executive project manager and the guiding direction of the project management level, the successful application of the Total Field Autonomy approach can be achieved.

CHAPTER

10

Policies: The Portrayal of Management ~ttitude

10.1 E'OLICY FORMULATION

In every decision situation, decision makers are faced with the determination and evaluation of available alternatives and the selection of the best course of action (or alternative) from the many that are then available. Often, management wishes to guide the decision maker in his selection to a preferred course of action or offers him objectives and evaluation criteria so that he can determine that course of action that he knows will meet with management approval. In these decision situations the decision maker is expected to operate under policy guidance. A policy is theref o r ~a predetcrmined plan, course of action, or evaluative criterion that enables a decision maker to perform a decision function in accordance with management objectives. All companies have operative policies that are implemented by predetermined procedures for all delegated decision problem areas. Thus operative policies and their associated procedures can be used to characterize the management approach of a company. Policies originate either as initial management statements on how to cope with foreseen decision areas or are formulated as the result of a need to give consistent approaches to frequently arising problems. In the latter case, such policies may reflect the majority of historical decisions or be based on a newly established scale of values. Each policy will reflect management's assessment of the best methods, or course of action, to management problem solving. Thug policies reflect, and are indicative of, management attitudes and values with respect to the decision problems addressed by the policies. A policy is implemented via specific procedures that identify the functions required for problem solving and prescribe the desired order for the execution of these functions. In this way, top management can safely delegate decision making to those who have been instructed to operate within policy guidelines. Policies focus on the manner in which the manpower management functions should be performed. In some cases the policies merely point

Portrayal of Management Attitude

10.2 THE FUNCTION-POLICY PLOT

in the direction of desirable techniques, in others the policies are formalized in practice into specific rules, documents, and procedures that must be followed. Thus the management approach of a company (i.e., the way it operates) can be described by its entire range of operative policies. The identification and formulation of policies and the procedural implementation will be heavily influenced by the project environment, organization structure, and mode of operation of a firm. Generally, policies become more specifically defined and focused as the project team structure (and management attitude) becomes more complex and integrated in response to the needs of project management. Thus significant changes can be detected in the statement of policies for apparently similar decision areas with change in firm size. Firms operating in similar business and project environments having similar organizational structures and modes of operation are more likely to meet the same sort of problems and to have similar operative policies and company procedures. On this basis, operative policies and procedures can be examined which are characteristic of those associated with company's operating with specific project team structures. In general, the performance of a manpower management function will be influenced by, or constrained by, a number of company policies. Additionally, each management function will have its own unique collection of policies. Collectively, the set of policies will prescribe how the function is to be performed or will make a recommendation as to the techniques or documents to be used. Thus it becomes useful to identify the policies relevant to each management function. A simple approach to the portrayal of a function-policy plot is shown in Figure 10.1. In this figure the performance of function Fl is influenced by policies P2, P4, P5, and P11. A more practical example is shown (see Figure 10.2) for the ESTIMATION OF THE LABOR CONTENT (P4) of a construction activity or project as performed at the large firm level. The full function-policy statement would appear as shown in Figure 10.3. This is obtained first by referring to the Appendix for that portion of the full description of the basic manpower management function relevant to the level of performance and the management approach being considered, and second, by referring to the policy formulations as given in the relevant chapter. As indicated

I

I

I

FUNCTION Policy Policy

P I <+kction

to be performed

Policy influencing manner of performance of function

Policy Policy

Function-policy plot

Figure 10.1 Function-policy plot.

ESTIMATE LABOR CONTENT

P4

P7 UNIT MAN-HOURS P8 HISTORICAL DATA P9 LABOR DATA BASE Figure 10.2 Example of the function-policy plot: ESTIMATION OF LABOR CONTENT at the large firm level.

ESTIMATE LABOR CONTENT

P4

Rationalizes the labor content for each project activity. Requires an intimate knowledge of crew sizes and capacities for each proposed construction method and intended level of equipment use, as well as an extensive knowledge of labor productivities, site conditions, and historical labor data base. Considers the impact of site conditions on labor productivity and the magnitude of activity work content in estimating activity duration and labor content. Extends direct labor content to include the labor burden as well as considering the labor content involved in the field management of labor and in the engineering and general office functions.

P6 COST CODES

P7

UNITMANHOUR

P8

HISTORICAL DATA

P9

LABOR DATA BASE

Figure 10.3

Systematic classification of work categories segregated by unique cost codes is the basis for structuring the project scope into work tasks, categorizing estimated costs, reporting and controlling costs and manpower, and developing a historical data base. Realistic evaluation of the labor content for a work task is essential for successful project planning and cost control. Therefore, labor costs must be based on work task man-hour content in relation to work volume, construction methods, local productivities, and labor availability. Historical labor data are basic to a realistic determination of the labor content for a work task. Historical labor data must be analyzed and documented in a meaningful way in order to be nseful for estimating and planning manpower for future projects.

Example of the function-policy plot: ESTIMATION OF LABOR CONTENT at the large firm level.

Portrayal of Management Attitnde ESTIMATE LABOR CONTENT P4 P3 USE COST CODES P4 LABOR UNIT COSTS P5 UNIQUE PROBLEM

Figure 10.4

ESTIMATION OF LABOR CONTENT at the small firm level.

here, the function ESTIMATE LABOR CONTENT (P4) is fully per. formed and the relevant policies are extracted from those given in Chapter 13. At the small firm level, however, the ESTIMATION O F LABOR CONTENT (P4) is performed in a different manner guided by a different set of policies. The simple function-policy plot is shown in Figure 10.4 and expanded in Figure 10.5. When contrasting the performance of the ESTIMATION O F LABOR CONTENT (P4) by the large firm (Figure 10.3) with that of the small firm (Figure 10.5) it is apparent that the small firm's estimating techniques are based on labor unit costs rather than man-hours, as indicated by its policies. The function-policy plot, whether at the simple portrayal or full description level, provides a useful method for describing how a management function is to be performed. The function-policy plot concept is very use-

ESTIMATE LABOR CONTENT

P4

Rationalizes the labor content for each project activity. Requires an intimate knowledge of crew sizes and capacities for each proposed construction method and intended level of equipment use, as well as an extensive knowledge of labor productivities, site conditions, and historical labor data base. Considers the impact of site conditions on labor productivity and the magnitude of activity work content in estimating activity duration and labor content. Extends direct labor content to include the labor burden. P3

USE COST CODES

P4

LABOR UNIT COSTS

P5 UNIQUE PROBLEM

Figure 10.5

Systematic classification of work categories segregated by unique cost codes is used to identify work tasks and collect costs. Labor unit costs are sufficient in project estimating provided these costs reflect past expenence from projects similar in scope and are adjusted, when necessary, to ensure compatability with the current project scope. If unique manpower and crew aspects appear, labor unit costs are developed by evaluating crew size, mix and production rates; otherwise, traditional labor and crew situations are assumed.

ESTIMATION OF LABOR CONTENT at the small firm level.

The Portrayal of Policies

10.3 THE IWRTRAYAL OF POLICIES

ful for a deep understanding of management decision processes and the modus operandi of an organization. The following four chapters are devoted to the portrayal of management attitudes toward project manpower management. This is accomplished by establishing a complete set of relevant policies and relating them to management attitudes and the performance of manpower management functions. The chapters have been ordered so as to present the policies of small, medium-sized, and large firms, respectively, and conclude with those representative of the management approach of the autonomous project team. A common format has been adopted for each chapter as a means of highlighting cross references and of simplifying the selective reading and the study of functional performance, the growth of specialized policies, and the portrayal of management attitudes. Each chapter has the following format: An introductory broad statement of the management focus that represents the overall management attitude at the firm level considered. Section 1 presents the listing and description of the full set of manpower management policies. Each policy has a short key word title followed by a full description. The section can be referenced for individual policies or for groups of policies that relate to the broad management areas of project definition, field construction, and project management. No attempt is made in this section to explain the policies. Instead, the precise statement of each policy enables the reader to quickly cover the entire range of policies relevant to the management approach and thereby gain a feeling for the management attitude toward manpower management that generates these policies. Section 2 gives an extensive but condensed description of the manner in which specific policies are brought to bear on the performance of management functions, thereby further exposing management attitudes. The material of this section references each policy in terms of its short key word title. Consequently, it may be necessary to refer, from time to time, to the full description of a policy as given in the preceding section of the chapter. This section material is intended to be studied carefully rather than to be casually read. Accordingly, at first reading of each chapter, this section may be conveniently omitted. Section 3 presents the function-policy plots for each basic manpower management function performed at the relevant management approach level in terms of the specific policies formulated by this management approach. The individual function-policy plots are given only in terms of the short key word policy titles. Accordingly, if a full understanding of the policy impact on the performance of a function is desired, it is necessary to refer to the Appendix for a full description of the basic manpower management

Portrayal of Management Attitude

function and to the detailed descriptions of each policy involved as given in the first section of the relevant chapter. The layout of each chapter has been presented as a guide to the reader in the manner in which he might wish to read the following four chapters. The material content presented in these chapters can, however, be studied in a variety of ways that focus on the relative aspects of the professional management attitudes of the collective management approaches. For example, the reader may find it both instructive and useful to follow through the development, precise formulation, and professional enlargement of a policy area by reading the relevant policy descriptions (and their use) in each of the four chapters. Again, an understanding of the performance of each manpower management function at each management approach level can be gained by looking at the changing policy plots for that management function in each of the four chapters. Finally, it is possible to study the impact of a particular policy on the modus operandi of a company by identifying all the function-policy plots that include that policy. If this is done for each management approach, considerable insight can be gained into the professional stance and management attitude of each. Many other uses can be made of the material that follows, especially with reference to decision processes and manager/supervisor roles. The interested and careful reader will readily formulate his own.

CHAPTER

11

Management Attitudes: Policies of the Small Firm At the small firm level, management effort is inherently constrained by the small number of permanent employees and management personnel. This staffing and management constraint is partly overcome by encouraging field staff to complement the limited management potential of the firm. This is often accomplished by delegating almost full authority to field supervisors for field construction activities, thus freeing the firm's managers for business activities. This management compromise produces a construction management approach which essentially separates head office project definition and projectmanagement efforts from field construction. This management approach has been referred to previously as the Project Team Component management approach (see Chapter 6 ) . Manpower management policies at the small firm level reflect this limited management potential environment and organizational solution. Thus most field oriented policies at the small firm level have a broadbrush scope designed to encourage field supervisors to participate in the management efforts of the firm while the personal, professional, business, and manpower management attitudes and standards of the firm's partners are conveyed by personal contact and example. Most policy formulations are therefore verbal, with little documentation or formality. However, in the head office environment those policies relevant to essential business activities (such as estimating, bidding, and payroll) are often more specifically formulated, focused, and implemented. Thus the operative policies that reflect the small firm's basic attitude to manpower management address the different management and decision problems met in the three essentially autonomous and sequential components of project detinition, field construction, and project management. These operative policies are summarized in Section 11.1 in a sequence that corresponds roughly to these diierent components of constmction management.

Small Firm Policies

166

11.1 POLICIES OF THE SMALL FIRM

The operating policies influencing manpower management at the small firm level are presented below in tabular form. The first seven policies address project definition, P8 through P20 address field construction, and P18 through P23 focus on project management.

Policy

Description

P1

NORMAL ROLES

P2

VISUAL INSPECTION

P3

USE COST CODES

P4

LABOR UNIT COSTS

P.7

UNIQUE PROBLEM

P6

USE BAR CHARTS

P7

SCHEDULING FOCUS

P8

COMPANY ALLEGIANCE

P9

KEEP BEST

PI0 UNION RELATIONS

PI1 UNION PRACTICE

P12 FIELD RESPONSIBILITY

PI3

PAST EXPERIENCE

Project decision members assume normal project team roles (see, for example, Figure 6.4) Visual site inspection is the method by which the impact of site conditions on project construction is evaluated Systematic classification of work categories segregated by unique cost codes is used to identify work tasks and collect costs Labor unit costs are sufficient in project estimating provided that these costs reflect past experience from projects similar in scope and are adjusted, when necessary, to ensure compatability with the current project scope If unique manpower and crew aspects appear, labor unit costs are developed by evaluating crew size, mix, and productivity; otherwise traditional labor and crew situations are assumed The bar chart planning model is the approach best suited for project scheduling Scheduling definitions and constraints are: (1) critical activity is any activity that opens up work areas for other crews and whose delay causes work volume bottlenecks. (2) Activity durations and sequence logic incorporate the impact of seasonal weather conditions. (3) Activity scheduling is based on the earliest possible start dates. (4) Manpower impact is neglected Field management is staffed from men loyal to the company without hiring on a permanent basis Field management must retain or employ the best qualified men available and strive to build a nucleus of men loyal to the firm (i.e., create a permanent work force) In a closed shop environment, maintaining good relations with each union (through the business agent) is helpful to successful project management Field management must subscribe to local union practices when operating in a closed shop environment Actual crew planning and management and manipulation of labor is a total field responsibility Field planning and scheduling of manpower is based on a free-wheeling "ad hoc" approach, with heavy reliance on past experience

167

Management Attitudes of the Small Firm Policy

Description

PI4 CREW SELECTION

Crew selection is based on these models: (1) historical crew sizes and mixes, (2) trial-anderror crew buildup, (3) maximum crew size While impacted by union rules in some construction environments, the ratio of foremen to journeymen/apprentices within a crew is established to best optimize both the foreman's level of supervisory control and the crew's performance. Foremen other than loyal company foremen are selected on the basis of experience, managerial capability and desire, in that order The best mix of men is guided by skill level and personal compatability and is reflected in crew assignments Field labor management is not formally considered beyond maintaining good on-site relations via personal contact and recognition coupled with hiring-firing practices to weed out undesirable labor In the field, activity progress and crew performance is monitored by visual inspection and crew management decisions are based on subjective evaluation of observed progress and productivity versus planned progress and productivity Quantities in place versus total estimated quantities is an indicator of activity progress and is evaluated by visual inspection or quantity survey Labor hours are monitored and recorded by management personnel closest to the workface Activity progress and labor productivity are not normally considered beyond completed activity volume, labor unit costs, and total labor dollars expended to date relative to activity scheduled target completion dates, estimated labor unit costs, and total estimated labor cost Labor management-by-exception as problems arise is the customary decision approach Payroll dollars are generated and recorded manually on documents showing standard deductions

PIS CREW MIX

P16

BEST MIX

P17

PERSONAL CONTACT

PI8 W A L K JOB

P19

INSPECT PROGRESS

P2O FIELD LABOR HOURS P21 ACTIVITY STATUS

P22 P23

11.2 MANAGEMENT ATTITUDES OF THE SMALL FIRM

MANAGEMENT-BYEXCEPTION MANUAL PAYROLL

The policy descriptions presented in Section 11.1 describe a manpower management approach predominately characterized by a FIELD RESPONSIBILITY focus, with minimal head office intervention once the project is in the field. This approach is in response to the basic manpower management decision areas addressed by the small firm. These decision areas are: (1) the determination of the project labor content and the establishment of work force guidelines for field management; (2) the establishment of crew sizes, the management of the work force, and the resolution of work relations problems to meet the required work load of the project; and ( 3 ) the monitoring of work progress and the evaluation and revision of project scope, schedule, and cost efficiency.

Small Finn Policies

In this management enviromnent the policies that focus on these basic problem areas often reflect the ad hoc view of the manager/supe~isor involved, and there is little scope for formalized and documents that inherently embody or reflect policy formulation. Similarly, the policies, as indicated in Section 11.1, reflect fundamental estimating and field work control views which stem from the manpower management decision problems the small firm is addressing. The fundamental manpower management decision problem of project definition is the determination of project labor content and work force guidelines for field management. These decision problems are solved through several policies which reflect basic estimating and scheduling techniques. For example, the project team is structured according to the NORMAL ROLES* that each company manager/supervisor assumes for every project. Once the project team is established, estimating the labor content requires VISUAL INSPECTION of site conditions, structuring the project scope through the use of COST CODES, evaluating LABOR UNIT COSTS for each activity, and considering the impact on costs of UNIQUE PROBLEMS when such problems arise. The schedule is developed to establish work force guidelines through the USE OF BAR CHARTS, which reflect basic SCHEDULING FOCUS constraints. The head office provides little project manpower information in terms of either anticipated or actual on-site labor requirements. Rather, the infor; mation that flows to the field from the head office may be useful for actual crew planning and management. For instance, estimated LABOR UNIT COSTS (PI 1 ) and BAR CHART project schedules ( P 6 ) rarely delineate specific project manpower requirements but serve as a basis from which field management can determine crew profiles for certain activities or when basic activities must be completed. In this way, the project labor content and work force guidelines are established for field use. During field construction, establishing crew size, managing the work force, and solving crew work relations in order to meet the project work load is totally a FIELD RESPONSIBILITY. The crew sizing decision problem is solved primarily on the basis of PAST EXPERIENCE using those CREW SELECTION models described in policy 14. Both these policies reflect the ad hoc approach consistent with informal procedures and documentation found at the small firm level. Monitoring progress and crew performance is a problem left to the job superintendent or foreman. By WALKING THE JOB, visually INSPECTING PROGRESS, and evaluating FIELD LABOR HOURS the job superintendent and/or foreman normally identifies and solves most problems relative to activity progress and crew performance. Good on-site labor relations is crucial to the manpower management approach of the small firm because it is the essential ingredient for solving crew work relation problems, obviating labor relation problems which begin with building a nucleus of highly skilled tradesmen. This condition ensures better productivity, enhances morale, and hence increases profita-

*Policies are referred to by an abbreviated name, which is italicized and capitalized.

Small Finn Policy Plots

11.3 SMALL FIRM POLICY PLOTS

bility. Because both total project manpower forces and individual crews are small, there is little opportunity to absorb or cushion the impact of differences of opinion and work incompatibilities between field workers by separating them at the job site. Thus crew and project performance can be adversely influenced by a single individual who may either have a morale problem or is not a highly skilled tradesman. "Dead wood" in small crews cannot be tolerated and must be minimized under all conditions. Thus policies that promote good on-site relations and strive to build a nucleus of highly skilled tradesmen are recognizable in Section 11.1 (P8,P9, P10,P11, P15,Plh, andP17). Project management is normally considered on a MANAGEMENTBY-EXCEPTION BASIS (P22) when critical or unique problems arise. In this event, head office management, through the project manager, will advise on unique problems and either he with the superintendent or the job superintendent by himself will resolve the problem. Implementation of the problem still remains the job superintendent's responsibility. The management information flow system in terms of FIELD LABOR HOURS, INSPECTING PROGRESS, and ACTIVITY STATUS reports is established as a documenting mechanism for progress reporting and for retrieving historical data for estimating. The data generated are used to derive actual labor costs to date and roughly define progress to date. When these data are referenced against scheduled completion dates and the cost estimate, a status reporting system is created. In this capacity, it provides the project manager in the head office with an overview of project status in terms of both potential profit and loss and the viability of meeting target completion dates. It should also flag problem areas potentially requiring corrective action. The actual resolution and implementation of any corrective action is normally a FIELD RESPONSIBILITY (P12) provided that field management is alerted by the project manager. The degree of head office involvement in the solution of such problems is a function of the nature and severity of the problem. The information system also functions as a data retrieval mechanism by portraying actual LABOR UNIT COSTS ( P 4 ) as activity work tasks are completed. Because a lack of management capacity exists, the management information flow system remains basic and generates only the desired level of detail necessary for manpower MANAGEMENT-BY-EXCEPTION (P22). Furthermore, project size and complexity rarely warrant a more elaborate information system. A schematic illustration of the policies involved in the execution of manpower management functions at the small firm level is presented in Figure 11 .I. The relevant policies are listed under each of the manpower management functions whose performance they influence. At the small firm level each decision process, based upon these manpower management functions and policies, is very much a personal process, with little interference. Provided that field supervisors perform satisfactorily and seek and respond to occasional advice from head office management, a stabIe construction management environment results. Thus field supervisors over time absorb head ofice management's scale of values. In this way ad hoc policies are developed and passed on to the field management component.

55

w5 DEFINE C U R R E ~ A S ADJUST C R E W S ~ PROJECT STATUS

P6 USE B A R CHARTS P19 INSPECT PROGRESS P2i ACTIVITY \ STATUS

PROJECT MANAGEMENT POLICIES

,

P16

P17 '~6 P12 Pi3

L 6 7

P12 P13

P12 P13

l 5 r

\

DETAILED FIELD%^ QUANTITY TAKE-OFF FIELD P6 RESPONSIBILITY P7 PAST EXPERIENCE

REVISE \ / ~ 6 CONSTRUCTION SCHEDULE U S E B A R CHARTS P15 P16 SCHEDULING P17 FOCUS A.

ESTABLISH CREW7 REQUIREMENTS

SCHEDULE \ PROJECT CREWS

P11 UNION PRACTICE P12 FIELD RESPONSIBILITY PAST EXPERIENCE

LAYOUT FIELD RESPONSIBILITY PAST EXPERIENCE

P13

FIELD RESPONSIBILITY PAST EXPERIENCE J

P11

P14 CREW SELECTION P15 CREW MIX

ESTABLISH FIELDVMS LABOR ANALYSISCREWS 1

I Pi7

<

I

UNION PRACTICE1 P18 W A L K JOB

PI5 CREW MIX

BEST MIX

I

I

PERSONAL CONTACT

'-

I P19 P2l

INSPECT PROGRESS ACTIVITY STATUS

PROJECT MANAGEMENT / POLICIES / /

/ /

/

1

--/'

---------PERSONAL CONTACT (rW6 SOLVE HUMAN M6 WORK P R O G R E S S ~ R ~ QUANTITIES IN ASSIGN PLACE RELATIONS INDIVIDUAL PROBLEMS WORK TASKS USE COST CODES P 16 BEST MIX P3 Pi8 WALKIOB CREW MIX BEST MIX PI8 W A L K JOB P17 PERSONAL P19 INSPECT PERSONAL CONTACT A PROGRESS J CONTACT P19 INSPECT i PROGRESS f ~7 INITIATE V M7 RESOURCEUSE V R ~LABORHOURS ( INDIVIDUAL WORK TASKS P3 USE COST CODES P16 BEST MIX PI8 W A L K JOB '

A

P17

PERSONAL CONTACT

P20

A

FIELD LABOR HOURS

'

P18

P20 \

FIELD CONSTRUCTION POLICIES

P17

PERSONAL EXPERIENCE

, Figure 11.1 (Continued)

W A L K JOB FIELD LABOR HOURS

J

CHAPTER

12

Management Attitudes: Policies of the Medium-sized Firm The general management approach behind the Traveling Project Manager concept is the linking of head office and field management functions through the project manager. The resulting close contact between the office and field environment emphasizes management's concern with project dollar sensitivity and the need for continuous knowledge of site activities and potential consequences on project profitability. Thus effective cost control, coupled with knowledge of scheduling, is necessary and considered part of the continuous management process at all levels. This type of management approach requires an increased awareness of the various management aspects of a project and especially of manpower management, and therefore management policies at the medium-sized firm level reflect this concern. The continuous link that exists between the office and field allows management directives to be firmly established and impregnated into the entire management process. A constant flow of labor related information reaches all decision makers, thereby producing a more integrated management flow system, and creating both an efficient and an effective means of evaluating labor costs and work progress. The general manpower related decision problems of the medium-sized firm do not vary in nature from that of the small firm. However, the manner in which these problems are solved changes because of the different management attitude that arises from the Traveling Project Manager approach. Consequently, apparently similar policies change in terms of their definition and application, others remain unchanged, and in some cases, new policies emerge. Those operative policies intrinsic to the TPM concepts are described in Section 12.1. Only those policies that influence manpower management, and which are a representative expression of the medium-sized firm's manpower management approach, are described. Because these policies are only general characterizations, they will vary in practice for each medium-sized firm.

Policies of the Mediumaized Firm

12.1 POLICIES OF THE MEDIUM-SIZED FIRM

173

Thc operating policies influencing manpower management at the mediumsized firm level are presented below in tabular form. The first eight policies address project definition, P9 through P21 address field construction, and P22 through P29 focus on project management. In comparison to the policies of the small firm,the number of policies that address project definition and field construction at the medium-sized Policy

Description

P1

PLANNED ROLES

P2

I'ISUAL INSPECTION

P3

LABOR RECONNAISSANCE

P4

COST CODES

P5

LABOR UNIT COSTS

P6

CREW ANALYSIS

P7

BAR CHARTS

P8

SCHEDULlNG FOCUS

P9

KEEP THE BEST

PI0

COMPANY ALLEGIANCE

PI1

UNION RELATIONS

Project team structure and decision maker assignment to a project depend on project complexity and size, and the division of management functions desired to effectively manage the project Visual site inspection is the method by which the impact of site conditions on construction is evaluated Reconnaissance of the labor situation by interrogation of local labor officials is mandated for projects outside the normal work region Systematic classification of work categories segregated by unique wst codes is used to define work tasks, collect costs, and provide a means of comparing actual costs with estimated costs A realistic value of labor dollars is sufficiently derived from labor unit costs for most tasks provided that unit costs reflect current wages and potential production rates Productivity and method analysis must supplement labor wsts when evaluating cost differentials between a labor intensive operation and an equipment intensive operation Bar chart model and limited application of the critical path method are best suited for project scheduling Scheduling definitions and constraints are: (1) Critical activities are highly sensitive profit and loss activities and/or activities controlling the rate at which ensuing work can commence. (2) Activity durations and sequence logic incorporate the impact of seasonal weather conditions and restrictive work practices. (3) Manpower impact is considered on a conceptual basis. (4) Activity scheduling reflects the best sequencing of activities possible in order to effectively utilize all resources available Management strives to retain or employ the best qualified men available and build a nucleus of men loyal to the firm Key craft foremen are staffed from foremen loyal to the firm. Foremen other than loyal company foremen are selected on the basis of experience, managerial capability, and desire In a closed shop environment, maintaining good relations with each union, through the business agent, is helpful to successful project management

Medium-sized Firm Policies Policy

Description

P12 UNION PRACTICE

Field management must subscribe to local union ~racticeswhen operating in a closed shop environment Short-range planning of manpower at the head office pre-job level coupled with field labor manipulation is critical to project control Field planning and allocating of manpower is based on a free-wheeling approach, past experience, and close interaction between the project manager and field management Crew selection is based on three models: (1) historical crew size and mix, (2) trial-anderror buildup, and (3) maximum crew size While impacted by union rules in some construction environments, the ratio of foremen to journeymen/apprentices within a crew is established to best optimize both the foreman's level of supervisory control and the crew's performance The best mix of men is guided by skill level and personal compatability and is reflected in crew assignments Manpower management begins with head office scheduling and allocation of manpower with field input, but primary emphasis remains onsite good relations via personal contact and recognition In the field, daily activity progress and crew performance is monitored by visual inspection, and crew management decisions are based on subjective evaluation of observed progress and productivity versus planned progress and productivity Actual quantities in place versus estimated quantities is an indicator of physical progress and is evaluated by visual inspection and/or quantity survey Labor hours are monitored by personnel clos est to the workface and recorded either by them or by personnel whose primary function is to record labor hours Labor costs and quantities in place must be recorded and documented by a system yielding reliable information and viable reports for management control Labor productivity is an indicator of crew performance and is measured by activity labor dollar expenditures and quantity volume in place Activity analysis is implemented when critical activities could potentially delay the schedule and/or potential labor dollar overruns are emerging Projecting total project wsts becomes a viable method of ferreting out potential overruns and evaluating profitability at the activity level and total project level Manpower management-by-exception as problems arise is an acceptable decision approach. However, management decisions are made

PI3

MANPOWER PLANNING

P14

PAST EXPERIENCE

PI5 CREW SELECTION

PI6 CREW MIX

P17

BEST MIX

PI8

PERSONAL CONTACT

PI9 W A L K JOB

P20

INSPECT PROGRESS

P21 FIELD LABOR HOURS

P22

DOCUMENTED ACTIVITY STATUS

P23

ACTIVITY PRODUCTIVITY

P24

ACTIVITY ANALYSIS BY EXCEPTION

P25 COST TO COMPLETE

P26

MANAGEMENT-BYEXCEPTION

175

Management Attitudes of the Medium-sized Finn Policy

12.2 MANAGEMENT ATTITUDES OF THE MEDIUM-SIZED FIRM

Description

P27

MIX PAYROLL SYSTEMS

P28

PERCENT COMPLETE STATUS

P29

PROJECT TEAM SPIRIT

when the impact will result in a significant cost/scheduling savings Payroll dollars are generated and recorded either manually or electronically on documents showing standard deductions Construction progress reporting must provide reliable information of activity status and total project status to be an effective tool in manpower management and control Active participation of all field managers in the management process promotes goodwill and a positive management environment

firm level are more or less the same. In many cases, the focus of the policy changes to reflect a greater management penetration which is brought to bear by the Traveling Project Manager approach. As an example, compare P8, SCHEDULING FOCUS, of the medium-sized firm with P7, SCHEDULING FOCUS, of the small firm. It is clear that the medium-sized firm's SCHEDULING FOCUS is much more detailed than that of the small firm in terms of the definition of critical activities, manpower evaluations, and activity scheduling analysis. Some policies, however, have the same focus in terms of their impact of project definition and field construction such as P9, KEEP THE BEST, of the medium-sized firm and P9, KEEP THE BEST, of the small firm. In this case both firms operate in an identical manner. The most noticeable change in policy focus occurs in the project management phase of the medium-sized firm when compared to the small firm. The number of policies that address the project management phase at the medium-sized firm level increases by five, to a total of eight policies. This is substantiated by the growth of an integrated labor cost control system which emerges because of the TPM approach (see Section 7.4) and is established by the following new policies: ACTIVITY PRODUCTIVITY (P23), ACTIVITY ANALYSIS BY EXCEPTION (P24), COST T O COMPLETE (P25), and PERCENT COMPLETE STATUS (P28). Additional analysis of the policies and their application at the medium-sized firm level are provided in the next section. The key medium-sized firm manpower management policies in Section 12.1 that most closely describe the TPM concept are those focusing on MANPOWER PLANNING (P13), the USE OF EXPERIENCED FIELD MANAGERS (P14),* and the importance of PERSONAL CONTACT (PIS). Each policy encapsules the management decision directive, producing the interaction or linking of the head office and field *Whenever specific mention is made in the text to the documentation of, or the performance of a function under the guidance of, a specific manpower management policy, the policy name is italicized and capitalized. Notice that the policy names are often slightly altered to ensure integration of the policy name into the context of the textual sentence in which it appears. In this case, policy P14 in Section 12.1 is labeled PAST EXPERIENCE but is referred to above as the USE OF EXPERZENCED FIELD MANAGERS.

Medium-sized Firm Policies

levels through the integration of various manpower management functions. For example, the MANPOWER PLANNING and INTEREST IN INVOLVING FIELD (i.e., P29, PROJECT TEAM SPIRIT) policies influence the performance of .critical manpower management functions, both in the head office and in the field during construction. The composite of these policies cultivates a project environment suitable for the Traveling Project Manager approach because of the continuous interfacing between the head office and field work environment. This interfacing is an integral facet of the problem solving process that the medium-sized firm promotes through the TPM concept. During project definition the problem focus relates to the determination of the labor content and work force guidelines of the project. Because these problems are identical to those of the small firm, the policies addressing- them are similar, with one basic exception. The policies of the medium-sized firm tend to promote a more explicit management control conscious attitude. For instance, the development of the project team structure is based on PLANNING ROLES ( P I ) to meet the demands of a project in terms of its complexity and management commitment rather than the NORMAL ROLES (Section 1 1 . 1 ) approach of the small firm. The emergence of cost control concepts appears when classifying work categories by unique COST CODES (P4) becomes more than a method of defining work tasks and segregating costs. The continuous focus on comparing actual cost to estimated costs is essential for meanindul cost control. Furthermore, the labeling of activities as cost critical becomes a means by which management focus can be funneled quickly to the most important activities. Cost critical activities are identified for field monitoring in conjunction with basic scheduling concepts (SCHEDULING FOCUS, P8). Scheduling assumes a more significant role in manpower management and is evident from the policies relating to scheduling techniques and approaches. Accordingly, the BAR CHART (P7) planning model and a limited CPM application are both used at the medium-sized firm level. This permits flexibility in the pre-job scheduling phases by expanding scheduling alternatives and by introducing a logic based network for analyzing construction sequence alternatives. Even more significant is the emergence of MANPOWER PLANNING (P13) at the pre-job level. This policy identifies the need to evaluate manpower when analyzing construction sequence and evaluating activity durations, even though it may be on a conceptual basis, since "short-range planning of manpower at the head office pre-job level . . . is critical to project control." Ensuring that management control directives are passed onto the field construction level, the participation of both head office and field managers in project definition and field construction is mandated through the USE OF EXPERIENCED FIELD MANAGERS (P14) and MANPOWER PLANNING (P13). The field managers, primarily the superintendent and foremen, must then approach the crew sizing, management, and human relations problems to meet the control directives of the project manager. Many of the field construction policies of the medium-sized firm are ~

-

~

Management Attitudes of the Medium-sized Finn

177

common to the small firm. This suggests that the two types of firms operate in similar modes with respect to field construction or that there might exist policies common to all firms in the construction industry. In the former instance, the medium-sized and small firm's approach to manpower management is parallel, particularly with respect to the methods of executing field decision processes. The major differences in this area between these two firms are the project manager focus and the method of documenting progress data. For example, FIELD MONITORING (P19), RECORDING OF OUTPUT (P20), and LABOR USE (P21) are all basically similar policies; however, because of the influence of other policies, the documents generated would differ slightly.* Labor relations is an extremely important aspect of the field decision processes of the Traveling Project Manager concept. I t begins early in the life of the project at the head office level. The crux of labor relations is the continuous interaction and participation of all managers in the management process. The development of a PROJECT TEAM SPIRIT (P29) is a main objective and characterizes the way in which the TPM interacts with field personnel. The active participation of all managers, including craft foremen, in managing the project creates a positive working atmosphere based on mutual trust and respect. It is an excellent motivator for the field forces and when promoted to the craft level, high project morale can be sustained over the life of the project. Establishing management control directives during project definition is fruitless if these directives are not carried out in the field. T o prevent this, a management control system for monitoring progress, evaluating status, and making timely decisions ensues. Through the project manager's direct involvement in field construction and project management, original directives can be reevaluated when cost efficiencies, revised scope, and schedule alter the construction plan. For example, the values of cost control emerges through the DOCUMENTATION OF ACTIVITY STATUS, (P22) by directing that the management information system yield cost data and reports that are useful for project control. To achieve this end, P22 promotes the creating of a viable information system producing documented data that give a realistic picture of project cost status at a given point in time. The focus on ACTIVITY PRODUCTIVITY (P23) further describes labor costs and volume in place\ (i.e., unit costs) as measures of productivity, and COSTS TO COMPLETE (P25) specifies forecasting (projecting total project costs) as a primary means of uncovering problem areas. Finally, tracking progress becomes an important aspect of manpower management because PERCENT COMPLETE STATUS (P28) indicates that reliable activity progress information is considered essential for evaluating manpower problems and making management decisions. The focus on CRITICAL ACTIVITIES (as they are defined in policy 8 ) emerges in project control of labor and progress. Thus the critical *The detailed consideration of manpower management decision processes and the interaction of policies with manpower management functions is considered in the companion volume entitled Project Manpower Management, Decision Making Processes in Construction Practice.

L 4

m

PLAN P

'PI

SCHEDULE S

ALLOCATE A

WORK W

MONITOR M

RECORD R

CONSTRUCTION VS1 CONSTRUCTION SEQUENCE RECONNAISSANCE

V ~ l ALLOCATE V ~ lRELEASE STAFF v ~ lSUMMARY V~~ HlSTORICAL 3 OFFICE, ENGITO PROJECT DATA BASE PROJECT REPORTS NEERING, AND DESIGN STAFF B A R CRARTS P1 PLANNED ROLESAP1 PLANNED ROLES, P26 MANAGEMENTP5 LABOR UNIT SCHEDULING BY-EXCEPTION COSTS FOCUS P22 DOCUMENTED 1 -ACTIVITY - -- - - - STATUS - - --- - COSTCODES ESTABLISH A2 ALLOCATE FIELD W2 PRE-JOB LABOR M2 CURRENT GENERATE LABOR CONSTRUCTION STAFF PROJECT STATUS MANAGEMENT CONFERENCE SCHEDULE B A R CHARTS P1 PLANNED ROLES ,PI1 UNION RELATION, P28 PERCENT SCHEDULING COSTS COMPLETE FOCUS STATUS P13 MANPOWER P29 PROJECT TEAM P22 DOCUMENTED PLANNING ACTIVITY STATUS SPIRIT L 1 PI0 COMPANY ALLEGIANCE P29 PROJECT TEAM - -SPIRIT DETERMINE 3 DETERMINE ' ~ 3 WORK FORCE PROJECT 5 3 PROJECT COST PROJECT AND PROJECT AND ACCOUNTING FORECAST MANAGEMENT TRADE MAN-HO TRADE MANP4 COST CODES PROFILES POWER PROFILE SCHEDULING 1 P8 SCHEDULING P22 DOCUMENTED FOCUS FOCUS COMPLETE ACTIVITY STATUS MANPOWER P13 MANPOWER P27 MIXED PAYROLL P26 MANAGEMENTPLANNING PLANNING SYSTEMS r BY-EXCEPTION W4 ENFORCE ACTIVITY ANALYSIS JURISDICTIONAL AND SKILL LEVEL WORK P11 ASSIGNMENTS UNION P24 ACTIVITY RELATIONS ANALYSIS BY EXCEPTION ~ ~ UN 1 IO 2 N PRACTICE,-

P

P7 P2 VISUAL P8 INSPECTION P3 LABOR RECONNAISSANCE1 \

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P2 ACTIVITY DEFINITION P4 COST CODES

S2

' P7P8

*S3

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P5 LABOR UNIT

P8

COSTS

.

P13

PS LABOR UNIT COSTS

I P6

CREW ANALYSIS

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Figure 12.1

Medium-sued firm policies: policies influencing function performance.

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ADJUST CREWS V

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5ESTABLISH VM5 LABOR V ~ 5 LABOR PRODUCTIVITY ANALYSIS FIELD CREWS P22 DOCUMENTED P22 DOCUMENTED P10 COMPANY MANPOWER ACTIVITY STATUS ACTIVITY STATUS ALLEGIANCE PLANNING P23 ACTIVITY P23 ACTIVITY P16 CREW MIX PAST PRODUCTIVITY PRODUCTIVITY EXPERIENCE \ P26 MANAGEMENT- P17 B E S T M I X BY-EXCEPTION \ P18 PERSONAL CONTACT (p6 DETAILED FIELDYS~REVISE V ~ 6 ASSIGN V ~ 6 SOLVE HUMAN^ M6 WORK P R O G R E S S ~ R ~ Q U A N m I E S IN PLACE RELATIONS CONSTRUCTION INDIVIDUAL TAKE-OFF PROBLEMS WORK TASKS SCHEDULE QUANTITY P19 W A L K JOB P19 W A L K JOB P17 BEST MIX P16 CREW MIX P25 MANAGEMENTP4 COST CODES P17 BEST MIX BY-EXCEPTION P14 PAST P20 INSPECT P20 INSPECT PI8 PERSONAL P18 PERSONAL P7 B A R CHARTS EXPERIENCE PROGRESS h CONTACT A PROGRESS CONTACT PI5 CREW L P22 DOCUMENTED P8 SCHEDULING ACTIVITY STATUS P23 ACTIVITY PRODUCTZVZTY \ \ LABOR HOURS /W7 INITIATE M7 RESOURCE USE \ ' ~ 7 / ~ 7 ESTABLISH C R E W ~ S ~ SCHEDULE p21 FIELD LABOR INDIVIDUAL P19 W A L K JOB PROJECT CREWS REQUIREMENTS HOURS WORK TASKS P21 FIELD LABOR P13 MANPOWER PI3 MANPOWER HOURS P22 DOCUMENTED PI7 BEST MIX PLANNING PLANNING '.ACTIVITY STATUS P18 PERSONAL P I 2 UNION PRACTICE P14 PAST P23 ACTIVITY CONTACT EXPERIENCE P14 PAST L PRODUCTIV1TY EXPERIENCE 4 S TC O D P15 CREW SELECTION P I 6 CREWMZX 8 PLAN WORKFACE( 8 EXECUTE W O R K ~ M ~FIELD \ LAYOUT INSPECTION P14 PAST P19 W A L K JQB CONTACT EXPERIENCE < / P18 PERSONAL CONTACT P26 MANAGEMENTBY-EXCEPTION P29 PROJECT TEAM SPIRIT J P

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Figure 12.1

(Continued)

Medium-sized Firm Policies

12.3 MEDIUM-SIZED FIRM POLICY PLOT

activity concept becomes the key to project status analysis and management can limit its attention to those activities having the most noticeable impact on project cost and schedule. For example, ACTIVITY A N A L Y SIS B Y EXCEPTION (P24) is keyed to the status of critical activities. All other activities are monitored and controlled by the basic field management approach used by the TPM and the field team as set forth in policies 13 and 19 through 23. For any given activity, many decisions are made on a MANAGEMENT-BY-EXCEPTION BASIS (P26) as problems arise. Manpower management-by-exception is applied to most normal situations; however, where specific changes or adjustments could enhance crew performance, thereby producing significant cost/scheduling savings, these changes are proposed, discussed, and implemented via the TPM field meetings. An approach of this nature is more frequently applied to critical activities, where changes will definitely have a major impact on cost and/or schedule. Specific changes could include new construction methods involving purchase of a piece of equipment. The management information flow system of the medium-sized firm is more than a mechanism for documenting status and retrieving data. It is a means of identifying problem areas in a timely manner so that management can act quickly to resolve each problem. It also provides information useful to more levels of management because reporting can be summary in nature for executive management or detailed for project management. In this manner an integrated information flow is achieved. The information system is flexible enough so that it can be applied to any level of detail. Because a broad range of project types is encountered, flexibility is necessary, and the reports generated can be tailored to reflect the needs of the project. Finally, a good information system not only promotes effective cost control, but provides current information and a historical base for developing realistic labor unit costs for estimating purposes. A schematic illustration of the policies involved in the execution of manpower management functions at the medium-sized firm level is presented in Figure 12.1.

CHAPTER

13

Management Attitudes: Policies of the Large Firm The Field Based Project Management concept is founded on the general management approach of shifting key head office functions and decision managers to the field site early in the construction management process. This relieves the field of a heavy project reporting commitment to the head office by performing more management reporting functions closer to the field work environment. However, a heavier management commitment in the field ensues because more functions must now be controlled by the field. This is advantageous because field management can directly access critical information without depending on head office input, thereby fulfilling a need to have such information readily available for project execution. However, the field is not totally separated from the head office because certain information flows must continue between the two levels in order to both support the field effort and to provide the project team (as well as executive management) with project status and progress. The combination of project size, complexity, and location raises the need for the Field Based Project Management approach. Ineffective management on projects of the magnitude and characteristics considered in the large firm environment can cost the company substantial profits and potential business. Thus management must be acutely aware of and sensitive to the need for early and effective project planning, knowledge of project status, and their potential consequences to project profitability. Knowledge of project status does not ensure effective management. This knowledge must be coupled with timely decision making and management response to problems or potential problems. Consequently, a management information system must be devised to provide information identifying project status to the detail required for several levels of management control. In this type of management approach, awareness of the various management aspects of a project, including manpower management, is acutely important. Management directives must be firmly established and impregnated into the entire management process, so that the field can assume its

n

Large Firm Policies

heavy management commitment and act with full authority over project execution in the field. The manpower management approach of the large firm evolves from within the management approach-described above. In this management environment there are decision problems addressed by the large firm which are significantly more complex in some areas than those of either the small or medium-sized firms. In fact, the large firm faces problems not even considered by the medium-sized firm. As a result, many new policies emerge and other policies are defined in more precise terms in order to cope~formallywith the complexity of the management problems encountered by the large firm. These policies are the management directives, which whe translated into procedures, guide or determine the means by which functions are executed and decisions made. The operative policies inherent in the Field Based Management approach as adopted by the large firm are described in Section 13.1. Only those policies that influence manpower management and which are a representative expression of the large firm's manpower management approach are identified. Since these policies are considered typical characterizations of the large firm's manpower management policies, they will vary in practice for each large firm. The operating policies influencing manpower management at the large firm level are presented below in tabular form. The first eleven policies - -

13.1 POLICIES OF THE LARGE FIRM

Policy

PI

PROJECT TEAM DESIGN

P2

PLANNED ROLES

P3

PROIECT TEAM CONTROL

P4

LABOR RECONNAISSANCE

PS

SITE INSPECTION AND ANALYSIS

P6

COST CODES

Description The project team structure is designed to maximize management control by giving the key managers full authority and responsibility for project execution The project team must have a complement of personnel so that all functional areas are assigned manager responsibility in order to achieve the desired level of management control Project team assignments must be planned and monitored to ensure a smooth buildup as work intensifies and declines as the project approaches completion Comprehensive survey, analysis, and documentation of the project site labor environment is requisite to accurately evaluate the labor content and manpower requirements for the project Comprehensive inspection, analysis, and documentation of project site conditions, transportation problems, etc., is requisite to accurately evaluate construction methods, plans and schedules, labor content, and to solve other unique problems A systematic classification of work categories segregated by unique cost codes is the basis for structuring the project scope into work tasks, categorizing estimated costs, reporting and controlling costs and manpower, and developing a historical data base

Policies of the Large Firm

Description

Policy

-

P7

UNIT MAN-HOUR

P8

HlSTORlCAL DATA

P9

LABOR DATA BASE

PI0 CRITICAL PATH BAR CHARTS PI1

SCHEDULING FOCUS

Realistic evaluation of the labor content for a work task is essential for successful project planning and cost control. Therefore, labor costs must be based on work task man-hour content in relation to work volume, construction methods, local productivities, and labor availability Historical labor data are basic to a realistic determination of the labor content for a work task Historical labor data must be analyzed and documented in a meaningful way to be useful for estimating and planning manpower for future projects A combination of critical path method and bar chart model are best suited for project planning and scheduling Scheduling definitions and constraints are: 1.

2. 3.

4. 5.

6. PI2

KEEP THE BEST

P13

COMPANY ALLEGIANCE

P14 UNION PRACTICE P15

MANPOWER PLANNING

PI6 CREW PLANNING

P17 CREW SELECTION

A critical activity is one that, if delayed, will extend the completion date of the project Activity durations must be correlated to the estimated work content All constraints must be defined and incorporated into the sequence logic Manpower impact is an integral aspect of project scheduling Schedule must reflect optimum use of all resources Progress is based on the physical completion of work activities

Management strives to retain and employ the best qualified men available and build a nucleus of men loyal to the finn through this security Key craft foremen are staffed from foremen loyal to the firm. Foremen other than loyal company foremen are selected o n the basis of experience, managerial capability, and desire Field management must subscribe to local union practices when operating in a close shop environment Long-range planning of manpower by craft and in total is a prerequisite to support the field effort and must be performed in the planning and scheduling stages of the project Field planning, allocation, and scheduling of manpower requires a precise definition of work tasks and a combination of past experience, knowledge of work content, and man-hour estimate and interaction between field project team members Crew selection is based on these models: 1. Maximum crew size

2. Number of crews 3. Work task analysis 4. Historical crew

Large Firm Policies Description

Policy Pl8

CREW SIZING VARIABLES

P19

CREWMIX

P20

BEST MIX

P21

UNION RELATIONS

P22 PERSONAL CONTACT

P23

LABOR RELATIONS

P24 W A L K JOB

P25

INSPECT PROGRESS

P26

FIELD LABOR HOURS

P27

DOCUMENTED ACTIVITY STATUS

P28

CREW PRODUCTIVITY

P29

COST TO COMPLETE

P30

TRENDING

P3 1 CRITICAL STATUS REPORTING

P32

ACTIVITY ANALYSIS

Labor dollars, man-hours, and quantities are primary ingredients in crew selection and must be weighed against scheduled activity durations While impacted by union rules in some construction environments, the ratio of foremen to journeymen/apprentices within a crew is established to best optimize both the foremen's level of supervisory control and the crew's performance The best mix of men is guided by skill level and personal compatability and is reflected in crew assignments In a closed shop environment pre-job union conferences and personal contact with the unions is an integral part of successful project management Crew management must be coupled with personal contact and good relations between office field management and construction workers A full-time labor relations expert is often required due to the complexity and manpower demands of the projects In the field, daily activity progress and crew performance are monitored by visual inspection and crew management decisions are made on the basis of subjective evaluation of observed progress and productivity versus planned progress and productivity Actual quantities in place versus estimate and/or forecasted quantities is an indicator of physical progress and is evaluated by physical quantity take-off. Quantities must be reported by cost code Labor hours are monitored by field personnel closest to the workface and recorded and processed by a staff member whose primary function is to ensure that the labor hours are allocated to the appropriate cost code Labor costs, man-hours, and quantities are primary ingredients to cost control and must be documented by a system yielding reliable information and viable reports for management control Actual unit man-hour rate versus estimated man-hour rates is a measure of crew performance and a basic indicator of productivity Projecting total project costs and man-hour requirements is requisite to identify problems and evaluate alternative courses of action at both the activity level and the project level A mechanism for documenting and analyzing deviations of wst and schedule consequence is an integral facet of the information system The construction progress reporting system must provide a comprehensive report of activity status highlighted by a mechanism to alert management of critical activity status and activities approaching critical status Activity analysis is geared to exception reporting mechanisms or field management desire to

185

Management Attitudes of the Large Finn

Policy

13.2 MANAGEMENT A'ITITUDES OF THE LARGE FIRM

P33

MANAGEMENT-BYEXCEPTION

P34

DATA PROCESSING

P35

PROJECT TEAM SPIRIT

Description analyze construction methods or crew productivity to improve crew performance Manpower management-by-exception is acceptable provided that the information system is geared to exception reporting to alert management to existing problems or potential problems which are emerging Maximum use of electronic data processing is often the most economical means of processing data into useable information Active participation of all field managers in the management process promotes goodwill and a positive management environment

address project definition, policies P12 through P26 address field construction, and policies P27 through P35 focus on project management. At the large firm level, the number of policies that focus on project definition, field construction, and project management increases when compared to the medium-sized firm. This reflects a growing manpower management sophistication, especially when coupled with the detailed and penetrating nature of many policies used in the Field Based Project Management approach. For example, the impact of man-hours is prevalent in many policies (P7, P27, P28, and P29) and replaces the labor unit cost approach common to the medium-sized firm. Man-hours are basic to evaluating work content, predicting manpower curves, and analyzing crew productivities. Even at the large firm level there are policies that remain unchanged and hence affect manpower management in the same way as they would in the medium-sized firm, such as policy P12, KEEP THE BEST. The dissection of policies to the three management phases is based on placing each policy in the phase it most predominately influences. For the small and medium-sized firms this can be easily accomplished. However, for the large firm, some policies begin to predominately influence and address more than one management phase. As an example, CREW PLANNING (P16) is more predominately associated with field construction; however, it also influences project definition, because project definition is performed at both the head office and field levels in accordance with the Field Based Project Management approach. Designing the project team size and structure is a predominate manpower management decision problem during project definition, because it is essential for ensuring that management responsibility is properly transferred to the field. Thus a PROJECT TEAM DESIGN in which managers perform PLANNED ROLES under a responsible PROJECT TEAM CONTROL is essential, as mandated by policies P I , P2, and P3 in Section 13.1. As these policies suggest, the project team organization is carefully designed and manned to satisfy the level of management control and to meet the needs defined by the project work load. Furthermore, the project team must be monitored and controlled to ensure that it meets project

Large Finn Policies

management objectives. This enables head office project management to establish a plan for transferring project responsibility to the field as construction commences. The basic determination of the manpower content and work force guidelines is dramatically changed due to the demands of project size and complexity coupled with utilizing the Field Based Management concept. Early MANPOWER PLANNING and LABOR RECONNAISSANCE combined with SITE INSPECTION AND ANALYSIS, ( P 4 and P5), imply that a heavy commitment toward a knowledge of labor and site conditions is essential when evaluating the total labor content and magnitude of the project. This means that site labor availability, productivity, construction access problems, and so on, must be analyzed and documented in a manner that is reliable for manpower planning. Labor unit costs are no longer an effective means of evaluating the labor content, because unit costing does not provide enough detailed labor information. Accordingly, the UNIT MAN-HOUR APPROACH (P7) yields a more realistic evaluation of the labor content, because the manhour content of each work task is considered. Establishing the estimated man-hour content is the best way to determine a realistic manpower projection. Finally, the UNIT MAN-HOUR policy is based on the premise that historical information is available and is stored in a viable format. This premise is satisfied by the establishment of HISTORICAL and LABOR DATA bases (P8 and P9). The former policy states that a labor data base is critical to the unit man-hour approach. The format of the data base is governed by the latter policy, which directs that the "Historical labor data must be analyzed and documented in a meaningful way to be useful. . . ." The key to the format of the data base lies in the company's COST CODING system. Cost control begins to assume an engineering flavor under the Field Based Management concept. This subtle shift from control to engineering promotes scientific methods of cost management commonly referred to as cost engineering. Cost engineering concepts emerge during project definition in the focus and use of COST CODES (P6). The company cost codes or classification of accounts becomes a dynamic tool serving as the basis for the cost engineering system of the project. All estimating, reporting, and controlling of labor costs and man-hours refers to this common base. Provided that the cost code is common to most projects, data from many sources can be collected and normalized into a single system or historical data base. Scheduling is another facet of the information system which begins to assume an engineering connotation. The scheduling focus moves toward the scientific scheduling techniques, of which the critical path method (CPM) is the most prominent method. It is widely utilized on projects in the large firm environment and is often accomplished by a comprehensive computer based scheduling system. The CRITICAL PATH method is not the only scheduling technique, because this method is commonly interfaced with the BAR CHART model as policy PI0 indicates. The bar chart model is the best scheduling tool available to top-level management

Management Attitudes of the Large Finn

187

because of its simplicity, whereas the CPM based schedule would be designed for planning and scheduling the detailed construction logic. SCHEDULING is given a policy focus via policy P11. This policy contains several important points directly related to manpower management. For instance, activity durations are correlated with the estimated work content, and manpower impact is an integral aspect of project scheduling. The other scheduling constraints focus on normal scheduling techniques. The definition of a critical activity is the normal definition associated with CPM. The impact of manpower planning relative to scheduling is further evidenced by a MANPOWER PLANNING policy (P1.5). This policy explains that early planning and scheduling of manpower on a long-range basis is a prerequisite to support thc field construction. The information provided must quantify construction manpower not only in total but by individual craft totals. The cost and scheduling directives established during project definition are carried to the field through the project team or as head office based functions are transferred to the field environment. These directives influence the techniques used to size crews, solve work relations problems, and make crew adjustments. For instance, past experience alone and a free-wheeling field management technique are not suitable approaches to crew planning and control. Actual CREW PLANNING (P16) and the scheduling, monitoring, and control of manpower in the field are based on the precise definition of work tasks. In addition to a knowledge of the work task content of an activity, CREW PLANNING considers estimated quantities, man-hours, and schedule durations and a variety of CREW SIZING VARIABLES (P18). Monitoring and controlling crew performance and activity progress requires a continuous surveillance of progress on a daily basis. This management focus is similar in practice to the medium-sized firm but is often supplemented with activity analyses. The size of the project team makes it increasingly important to ensure that continuous interaction, communication, and participation of all managers is achieved. A focus on the development and maintenance of a PROJECT TEAM SPIRIT (P3.5) is considered essential by the large firm. This concern is carried into the field and affects CREW PLANNING (P16), among other factors. Other field construction policies are identical to those of the medium-sized firm and therefore are applied in the same manner. Such policies are KEEP THE BEST (P12), COMPANY ALLEGIANCE (P13), UNION PRACTICE (P14), CREW MIX (P19), BEST MIX (P20), and UNION RELATIONS (P21). Finally, because of the size of the work force, a labor relations expert is often assigned to the project team. This situation will occur more frequently in union environments, where the large contractor must deal with a broad range of union rules and restrictive work practices. In open shop construction, problems of a union nature are often reduced, which is one of the significant advantages of open shop construction. A labor relations expert may also be responsible for developing employee motivation programs or training programs, as is often the case in an open shop environment. Regard-

Large Firm Polides

less of the construction environment, involving as many personnel in the project management as possible without disturbing lines of authority and responsibility can only enhance project morale and the success of the project. The project management component becomes primarily a field based operation. This is achieved through a full-time site project manager and a system of contact emphasizing both costs and schedules. Decisions can be made in a timely fashion and the project size, budget, and schedule can be revised in the field, thus ensuring that the impact is immediately known to all concerned. Cost control begins with accurately recording information in the field and is stressed by PROGRESS INSPECTIONS and the monitoring of FIELD LABOR HOURS (P25 and P26). If either labor hours or quantities in place are inadvertently assigned an incorrect cost code, a distorted picture of progress or man-hour expenditures for a work task would result. This could render any analysis of status (cost or schedule) meaningless for the given task. DOCUMENTED ACTIVITY STATUS (P27) defines the primary ingredients in effective cost control and specifies that these ingredients be documented by a system yielding information acceptable for management control. This approach, coupled with a COST-TOCOMPLETE (P29) focus, in which labor costs and man-hours are forecast, is a primary means of identifying problems in addition to evaluating alternative courses of management action. Problems are documented, and TRENDING (P30) highlights deviations from the control estimate or budget and also is applied to the base plan and schedule to document scheduling deviations from this base. Finally, CREW PRODUCTION (P28) is defined in terms of unit man-hour rates as a basic indication of productivity instead of using estimated and actual labor costs and quantities. This provides a direct means of evaluating productivity based on man-hour expenditures in relation to physical production achieved for the man-hours. Project control of labor and progress is based on a MANAGEMENTBY-EXCEPTION policy (P33). Management-by-exception not only means management action when a problem occurs but also management action when potential problems are discovered. In terms of policy impact, this implies that the policies must promote exception reporting mechanisms that will identify immediate problems as well as potential future problems. CRITICAL STATUS REPORTING (P31) is an exception reporting approach which reports status by highlighting the critical activities and those activities approaching criticality. This becomes a method by which management is alerted to problems or potential problem areas. By flagging problems as they are emerging, management will have time to react to forestall further complications resulting from a potential problem. In addition, by flagging only critical problems, management can concentrate on those activities that most influence the cost and schedule. One means of analyzing any problem, potential or otherwise, is through ACTIVITY ANALYSIS (P32), which becomes a tool for analyzing either a particular -

Large Firm Policy Plots

13.3

LARGE FIRM POLICY PLOTS

construction or crew productivity problem as a means of improving performance. In summary, the management information system is comprehensive and begins to integrate cost and scheduling information for project control. It must provide exception reporting to alert management t o potential problems. Because there exists a mass of information, exception reporting is critical or problems would remain uncovered until it is too late for corrective action. Furthermore, some activities would not significantly influence cost or schedule; therefore, management control of these activities is not warranted. Reporting at the level of detail described here demands a precise definition of each work task and its components when planning, scheduling, and allocating crew manpower. This will establish a base from which progress and crew performance can be tracked and measured. The reports that summarize activity status and crew performance can then be used by field management to make decisions and take corrective action. The system must also produce summary reports for the client, project management, and company management. A schematic illustration of the policies involved in the execution of manpower management functions at the large firm level is presented in Figure 13.1.

PLAN

SCHEDULE

ALLOCATE

P1

CONSTRUCTION S1 RECONNAISSANCE

CONSTRUCTION SEQUENCE

A1

P4 P5

L

LABOR PI0 CRITICAL PATH B A R CHARTS RECONNAISSANCE SITE INSPECTION PI1 SCHEDULING AND ANALYSIS A FOCUS

f ~ 2 ACTIVITY DEFINITION

P6

COST CODES

YS2 PI0 PI 1 PI6

WORK

--

-

P1 P3

h

ESTABLISH V A CONSTRUCTION SCHEDULE P1 CRITICAL PATH BAR CHARTS SCHEDULING P3 FOCUS CREW PLANNING P4 p5 \

ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF PROJECT TEAM DESIGN PROJECT TEAM CONTROL

MONITOR

W1

RELEASE STAFF TO PROJECT

MI SUMMARY

PLANNED ROLES

P33 MANAGEMENTBY-EXCEPTION

P3 A

PROJECT TEAM CONTROL

J

~ALLOCATE FIELD V ~ 2PREJOB LABOR Y M ~ CURRENT STAFF

R1

PROJECT REPORTS

P2

RECORD

&..

7 .

HISTORICAL DATA BASE

P27

DOCUMENTED ACTIVITY STATUS P28 CREW PRODUCTIVITY - P6 COST CODES P19 CREW MIX P20 BEST MIX P7 UNIT MAN-HOURS P8 HISTORICAL D A T A LABOR DATA BASE

Y R2

CONFERENCE

PROJECT STATUS

UNION PRACTICE P31

CRZTICAL STATUS P6

GENERATE LABOR \ MANAGEMENT DATA COST CODES

p p

PROJECT TEAM PI4 DESIGN PROJECT TEAM P21 CONTROL LABOR RECONNAISSANCE SITE INSPECTION P23 AND ANALYSIS

\

UNION RELATIONS LABOR RELATIONS

REPORTING

J

Figure 13.1 Large firm policies: policies influencing function performance.

P27

DOCUMENTED ACTIVITY STATUS P28 CREW PRODUCTIVITY P I 9 CREWMIX P20 P7 P8 P9

.

BEST MIX UNIT MAN-HOURS HISTORICAL DATA LABOR DATA BASE

f ~ 3 QUANTITY TAKEOFF P6 P7 P8

Y ~ 3

DETERMINE Y ~ 3 PROJECT AND TRADE MAN-HOUR PROFILES COST CODES PI1 SCHEDULING PI1 FOCUS UNIT MAN-HOURS PI5 MANPOWER P15 PLANNING A HISTORICAL DATA'

Y R ~ PROJECT COST DETERMINE V ~ 3WORK FORCE V ~ 3PROJECT FORECAST ACCOUNTING MANAGEMENT PROJECT AND TRADE MANPOWER PROFILES P27 DOCUMENTED P12 KEEP THE BEST P27 DOCUMENTED SCHEDULING ACTIVITY STATUS ACTIVITY STATUS FOCUS P29 COST TO P23 LABOR P28 COST T O MANPOWER COMPLETE COMPLETE PLANNING A RELATIONS P32 ACTIVITY P34 DATA ANALYSIS L PROCESSING / P28 CREW PRODUCTIVITY \P30 TRENDING /

LP9

LABORDATA BASE,

/~4

ESTIMATE LABOR V ~ 4 DEVELOP WORK V ~ 4 DETERMINE CONTENT PACKAGE NUMBER OF DETAILED LOGIC FIELD CREWS

ENFORCE V ~ 4 ACTIVITY " ~ 4 UPDATE AND \ REVISE WORK ANALYSIS JURISDICTIONAL PACKAGE SCOPE AND SKILL LEVEL WORK ASSIGNMENTS P27 DOCUMENTED PI4 UNION PRACTICE P32 ACTIVITY PI5 MANPOWER ACTIVITY STATUS ANALYSIS PLANNING P33 MANAGEMENTP29 COST TO P16 CREW PLANNING P21 UNION COMPLETE RELATIONS BY-EXCEPTION P31 CRITICAL STATUS P35 PROJECT TEAM PI8 CREW SIZING REPORTING VARIABLES i SPIRIT \ J P33 MANAGEMENT\ BY-EXCEPTION ~4

-

P6 P7

COST CODES

PI1 SCHEDULING FOCUS UNIT MAN-HOURS
,

P8 $9

HISTORICAL DATA LABOR DATA BASE,

'~5

DEFINE WORK PACKAGE COSTCODES

P6 P16 PI8 P35 \

'

V ~ 5ESTABLISH V ~ 5 LABOR ANALYSIS~RS FIELD CREWS P27 DOCUMENTED P27 CREW SELECTION P13 COMPANY ACTIVITY STATUS ALLEGIANCE P28 PI4 UNION PRACTICE P28 CREW CREW SIZING PRODUCTIVITY VARIABLES P29 COST TO P34 P19 CREWMIX CREW MIX COMPLETE \ P20 BEST MIX PERSONAL CONTACT P34 DATA PROCESSING LABOR L J RELATIONS PI5 MANPOWER PLANNING J \

Y ~ 5 DEFINE C U R R E N T V ~ 5 PROJECT STATUS PI0 CRITICAL PATH P17 BAR CHARTS CREWPLANNING PI1 SCHEDULING Pl8 FOCUS CREW SIZING P31 CRITICAL STATUS P19 VARIABLES REPORTING PROJECT TEAM P34 DATA P22 SPIRIT A PROCESSING P23

ADJUST CREWS

Figure 13.1 I-

Y

(Continued)

\

LABOR PRODUCTIVITY DOCUMENTED ACTIVITY STATUS CREW PRODUCTIVITY DATA PROCESSING

J

PLAN P

SCHEDULE S

ALLOCATE A

Y A ~ASSIGN

f ~ 6DETAILED FIELDYS~ REVISE CONSTRUCTION QUANTlTY SCHEDULE TAKE-OFF P22 P I 6 CREW PLANNING PI0 CRITICAL PATH B A R CHARTS P16 P I 1 SCHEDULING PI8 CREW SIZING P19 FOCUS VARIABLES \ / P3 1 CRITICAL STATUS $20 REPORTING P34 D A T A PROCESSING L

J

'~7

ESTABLISH CREWYS~SCHEDULE PROJECT CREWS REQUIREMENTS

P16 CREW PLANNING PI1 SCHEDULING FOCUS P I 7 CREW SELECTION PI5 MANPOWER P18 CREW SIZING PLANNING VARIABLES PI8 CREW SIZING P19 C R E W M I X VARIABLES P35 PROJECT TEAM SPlRlT L J

Y ~6 SOLVE HUMAN RELATIONS INDIVIDUAL PROBLEMS WORK TASKS PERSONAL PZO BEST MlX CONTACT CREW PLANNING P22 PERSONAL CONTACT CREW MIX P23 LABOR BEST MIX RELATIONS P35 PROJECT TEAM SPIRIT

y ~6

7

WORK PROGRESS

P24 W A L K JOB P25

,

\

P27

J

W7

INITIATE INDIVIDUAL WORK TASKS P20 BEST MIX P22 PERSONAL CONTACT

16 PI7 PI8 P19 P35

Y R ~IN QUANTITIES PLACE P25

P27 lNSPECT PROGRESS DOCUMENTED P28 ACTlVlTY STATUS P29 \P6

M7

RESOURCE USE

R7

p26 P24 W A L K JOB P26 FIELD LABOR P27 HOURS P27 DOCUMENTED ACTIVITY STATUS P28

C

,

P29 1

8

RECORD R

MONITOR M

WORK W

PLAN WORKFACE S8 SCHEDULE CREW LAYOUT MEMBER WORK CREW PLANNING 1 SEQUENCES CREW SELECTION CREW SlZING P22 PERSONAL VARIABLES CREW MIX PROJECT TEAM

I

P23

Figme 13.1

LABOR RELATIONS

(Continued)

6

I

P33

MANAGEMENTBY-EXCEPTION

1

INSPECT PROGRESS DOCUMENTED ACTIVITY STATUS CREW PRODUCTIVITY COST TO COMPLETE COST CODES LABOR HOURS FIELD LABOR HOURS DOCUMENTED ACTIVITY STATUS CREW PRODUCTIVITY COST TO COMPLETE COST CODES

RELATIONS

7

CHAPTER

14

Management Attitudes: Policies of the Autonomous Project Team

The Total Field Autonomy concept focuses on the total shift of project management responsibility to the field location. This shift occurs as early as possible in the life cycle of the project to quickly establish the field management team and an operating philosophy that meets the client's project objectives. Total field autonomy is primarily achieved by employing a company executive as project team manager and locating him permanently jn the field prior to significant construction progress. (On a design-construct project, this executive project manager would start in the head office and follow the project to the field.) This type of executive responsibility in the field alleviates the need for head office participation with field project execution. Decisions can be made in the field, and direct communication with the client regarding project progress can exist. This complete shift of responsibility to the field significantly increases the field management burden. The only interface with the head office occurs with respect to top-level management reporting and, in the case of a designconstruct project, only until the engineering and design effort is either phased out or transferred to the field. The Total Field Autonomy approach is often a response to heavy client demands for efficient and effective project management. It also arises from a company's recognition of a management approach that meets the challenge of a construction environment where project size, complexity, and/or location demand a management philosophy flexible enough to adapt to the unique problems of these types of projects. Because profit potential is usually quite attractive at this project level and good project performance generally means more work from the client, effective project management focuses on timely decision making through a totally integrated project team. Timely decisions require an integrated project planning and control effort originating at the top with the executive project manager and carried down to all levels of management responsibility. I t is therefore essential in this management environment that management

Autonomous Project Team Policies

14.1 POLICIES OF

THE AUTONOMOUS

directives and project goals be clearly communicated to all project team members and fully established and impregnated into the management process. Each project team member has a project responsibility relative to planning and control and must be aware of, and sensitive to, the interrelationships between planning, control, and timely decision making in response to problems and/or potential problems. Consequently, the management information system must be flexible to cater to a vast array of project needs established in the Total Field Autonomy approach to project management. The Total Field Autonomy management approach can be characterized by a unique set of operative policies that best describe this concept. These policies address manpower management decision problems similar to those encountered by the large firm operating under the Field Based Management approach. However, because of heavy client demands for effective project management and a recognition that good project management means profit, many of the policies reflect a more positive and penetrating management oriented tone. For example, CREW MANAGEMENT is based on past experience coupled with SCIENTIFIC MANAGEMENT TECHNIQUES. CREW PERFORMANCE is a function of labor productivity, job conditions, and MANAGEMENT EFFECTIVENESS and must focus on a tight but realistic performance indicator. Furthermore, because of this positive and penetrating management tone, many policies affect functions not previously affected by that policy at other firm levels. Yet, even at this optimum level of project team management, some policies are identical to those found at the small firm level and are often implemented in much the same way. In sum, all policies are management directives which, when translated into procedures, guide or determine the means by which functions are executed and decisions made. The operative policies intrinsic to the Total Field Autonomy approach are shown in Section 14.1. Policies that influence manpower management and represent this management approach are identified. These policies will vary in practice, because each is only a general characterization of the Total Field Autonomy approach. The operating policies influencing manpower management at the Totally Autonomous Project Team level are presented below in tabular form. The

PROJECT TEAM Policy

Description

-

PI

PROJECT TEAM FOCUS

P2

PROJECT TEAM CONTROL

P3

PROJECT TEAM DESIGN

The project team is initially head office oriented until field operations are established, at which time there is a total transfer of management responsibility and control to the field under a top company executive acting as project manager Key project team assignments and overall project team designs are made in consultation with and by approval of the client The project team structure is designed to maximize planning and management control by ensuring that the proper relationship exists between the level of manpower to be controlled in relation to the size of the project team

195

Policies of the Autonomous Project Team

Description

Policy P4

PLANNED ROLES

P5

PROJECT TEAM MANAGEMENT

P6

LABOR RECONNAISSANCE

P7

SITE INSPECTION AND ANALYSIS

P8

WORK BREAKDOWN

P9

COST CODES

Pi0 UNIT MAN-HOUR

PI1 HlSTORICAL DATA PI2

LABOR DATA BASE

P13 CRITICAL PATH BAR CHARTS P 14

SCHEDULING FOCUS

The project team is a fully integrated group of managers combining their functional responsibilities through the project team structure to optimize planning techniques and the level of management control demanded by the client and company management Management of the project team is essential to ensure that the project is being managed with maximum effectiveness Comprehensive survey, analysis, and documentation of the project site labor environment is requisite on a continuous basis to accurately evaluate labor content and plan manpower requirements for the project at any time during the project's life cycle A continuous comprehensive inspection, analysis, and documentation of project site conditions, transportation problems, etc., is requisite to accurately evaluate construction methods, schedules, labor content and to solve other unique problems A work breakdown struchlre representative of the project scope is formulated to integrate costs and schedules with work packages Cost codes are applied to the work breakdown s'tmcture and serve as a basis for categorizing estimated costs, reporting and controlling costs and manpower, developing a historical data base, and integrating the schedule with the estimate A tight but realistic evaluation of the labor content for a work task is essential for successful project planning and management control. Therefore, estimates must be based on work task man-hour content in relation to work volume, constuction methods, local productivities, labor availability, and site conditions Historical labor data are basic to a realistic determination of the labor content for a work task and preliminary scheduling development Historical labor data must be normalized to a standard reference location and/or base and then documented to be useful for estimating and planning manpower A combination of the critical path method and bar chart model are best suited for project planning and scheduling at the total project view level as well as the daily level Scheduling definitions and constraints are: 1 . A critical work package is one that, if delayed, will extend the completion date of the project 2. Work package durations must be correlated to the estimated work content 3. All restraints must he defined and incorporated into the sequence logic (i.e., material delivery, subcontract coordination, drawing receipt, etc.) 4. Manpower impact is an integral aspect of project scheduling

Autonomous Project Team Policies

Policy

Description 5. Schedules must reflect optimum use of all resources relative to work package 6. Progress is based on a realistic evaluation of the labor unit effort required to complete a component of work 7. Schedules are portrayed to the daily work level and are prepared, analyzed, and reviewed weekly in relation to planned progress and productivity versus actual progress and productivities

PI5

KEEP THE BEST

PI6 COMPANY ALLEGIANCE

PI7

UNION PRACTICE

PI8

MANPOWER PLANNING

P19 WORK ORDER

P20 CREW SELECTION

Management strives to retain and employ the best qualified men available and build a nucleus of men loyal to the firm through this security Key craft foremen are staffed from foremen loyal to the firm. Foremen other than loyal company foremen are selected on the basis of experience, managerial capability, and desire Field management must subscribe to local union practices when operating in a closed shop environment Long-range planning of manpower by craft and in total is a prerequisite to support the field effort and must be performed continuously throughout the project's life The work order is a key tool for field construction planning and crew sizing because it focuses on detailed estimates based on field measurements, describes construction methods, defines material and equipment mobilization, evaluates the most economical approach, and considers schedule impact, all in relation to work site conditions and work package Crew selection is primarily based on the work order model, but it does incorporate all other models, such as the following: 1. Maximum crew size 2. Number of crews 3. Work task analysis 4. Historical crew

P21 CREW MIX

P22 BEST MIX

P23

LABOR RELATIONS

P24 PERSONAL CONTACT

While impacted by union rules in some construction environments, the ratio of foremen to journeymen/apprentices within a crew is established to best optimize both the foreman's level of supervisory control and the crew's performance The best mix of men is guided by skill level and personal compatability and is reflected in crew assignments When union labor is utilized, pre-job union conferences and personal contact with the unions are an integral part of successful project management. Regardless of the wnstruction environment, a full-time labor relations expert is required because of the complexity and manpower demands of the projects Crew management must be coupled with personal contact and good relations between field

197

Policies of the Autonomous Project Team Policy

P25

WALK JOB

P26

PROGRESS REPORTING

P27 FIELD LABOR HOURS

P28

DOCUMENTED ACTIVITY STATUS

P29 CREW MANAGEMENT P30 CREW PERFORMANCE

P31

PRODUCTIVITY

P32

TRENDING

P33

CRITICAL STATUS REPORTING

Description management personnel and construction workers if scientific management techniques are to be applied successfully In the field, daily activity progress and crew performance is monitored by visual inspection and crew management decisions are made on the basis of subjective evaluation of observed progress and productivity versus planned progresr and productivity. The decision process often incorporates a number of decision makers A systematic method of evaluating physical progress must be based on measuring units of work for any component work tasks, with the capability of rolling progress up from this detailed component level to the total project level Labor hours are monitored by field persons closest to the workface and recorded and processed by a person whose primary function is to ensure that the labor hours are allocated to the appropriate cost code. Their proper allocation is essential to analyzing productivity and forecasting man-hours to complete at any level of detail Labor costs, man-hours, and quantities are primary ingredients to cost control and must be documented by a system yielding reliable information and viable reports for management control. These ingredients accrue as a basis for forecasting to complete at any level of detail Field crew management is based on past experience coupled with scientific management techniques Crew performance is a function of Iabor productivity, job conditions, and management effectiveness and must focus on a tight but realjstic performance indicator Productivity is an essential concept and must be rationally defined for office and field utilization. An awareness of the components that affect productivity and their relation to manhours, activity durations, and progress is essential, and that all these integrate and are manageable A mechanism for documenting and analyzing deviations of cost and schedule consequence is an integral facet of the information system and is essential for acquiring client authorized scope changes, adjusting budgets and schedules, and portraying the most probable man-hours and costs of the project. It also provides a means of evaluating contractor performance on a total project basis A construction status reporting system must provide a comprehensive report of activity status, highlighted by a mechanism to alert management of critical activity status and activities approaching critical status within a planning horizon that allows sufficient time to react

Autonomous Project Team Policies - -

Policy

Description - -

14.2 MANAGEMENT ATTITUDES OF THE AUTONOMOUS PROJECT TEAM

P34

SCIENTIFIC MANAGEMENT

P35

MANAGEMENTBY-EXCEPTION

P36

D A T A PROCESSING

P37

PROJECT TEAM SPIRIT

Techniques of scientific management, such as work sampling, time lapse, activity analysis, multiple activity charts, and prediction models, can contribute to improving crew performance Manpower management-by-exception is acceptable provided that the information system is geared to exception reporting to alert management to existing problems or potential problems which are emerging within a sufficient time frame to allow a management response to the problem A computer based information system is the most feasible means of data processing for management control Active participation of all project team members in the management process promotes goodwill and a positive management environment. It ensures the success of scientific management techniques and the total integration of the project team

first fourteen policies address project definition, policies P I 5 through P27 address field construction, and policies P28 through P37 focus on project management. The number of policies that focus on the Total Field Autonomy approach is more or less the same as those for the Field Based Project Management approach. The differences that arise when comparing the policies of these two approaches results from the application and penetration of the policy description in terms of the management process. As an illustration, compare the definition of productivity in policy P31, PRODUCTIVITY (this section), with the definition of productivity in policy P28, CREW PRODUCTIVITY (Section 13.1) for both approaches. At the Total Field Autonomy level, productivity is considered in terms of a definable concept and is definitely considered manageable. It is not simply a comparison of actual versus estimated man-hour per unit rates. At the Total Field ~ u t o n o m ~ - l e v there el are policies that remain the same, such as policy P15, KEEP THE BEST. In addition, many policies affect more than one management phase. This is the direct result of the total integration of all management aspects of the autonomous project team. The key manpower management policy that initiates the Total Field Autonomy approach at the inception of a project is FOCUSING ON PROJECT TEAM DESIGN (PI). This policy describes a totally integrated team located in the field headed by an executive project manager. Heavy client demands for sound and effective management further substantiate the need for total field autonomy. The client's influence is predominate in selecting the project team members as well as pressuring the firm to maintain a project team that is an effective managing body as seen through PROJECT TEAM CONTROL (P2). Consequently, several redesigns of the project team structure and size may be required before the most suit-

Management Attitudes of the Autonomous Project Team

199

able project team is achieved which meets both company requirements and the client's approval. This type of redesign often causes changes in key management positions. Consequently, PROJECT TEAM DESIGN (P3) becomes a critical aspect of Tdtal Field Autonomy management. Planning the project team structure and size is correlated directly to the level of manpower to be controlled. This acknowledges the importance of the relationship between the project team size and direct field labor effort. A common philosophy is that by achieving the proper percent of overhead (both management and supervisory manpower overhead) in relation to the direct field labor effort, field man-hours can be significantly reduced to a level that compensates for the increased project team size provided, of course, that the project team functions properly. This is ensured through PLANNED ROLES and PROJECT TEAM MANAGEMENT (P4 and P5, respectively), which promote management contact through a fully integrated project team approach. The basic problem focus of .project definition reIative to labor content . evaluation and early manpower planning is similar to the Field Based Management approach. There is a subtle, yet important, difference in the policy terminology, in that those policies influencing these problems stress a continuous effort throughout the project life. For example, LABOR RECONNAISSANCE and SITE INSPECTION AND ANALYSIS direct that changing site conditions and labor situations will cause a reevaluation of the project labor content. These types of changes will be trended into the definitive estimate through - the TRENDJNG (P32) system. In this way, policies affecting project definition also influence field construction and project management approaches. This can only be achieved through an integrated project team wherein directives are carried from the head office into the field management environment. The UNIT MAN-HOUR approach to evaluating the labor content must not only be realistic but a tight indicator of the labor content, because the labor content (man-hours) becomes the basis for determining labor productivity and progress. Depending heavily on a tight budget means that the LABOR DATA BASE must be fully developed and referenced against a standard location and/or defined base. In this way the data can be easily adjusted for alternate locations, unique site conditions, and local productivities when estimating the labor content. A common format for the data base is ensured by a realistic COST CODING (P9) system. Cost and scheduling are totally engineering oriented functions and are considered essential for planning and control during project definition. They are closely integrated, as is apparent in several policy statements in Section 14.1. The most obvious example is evidenced in the use of the WORK BREAKDOWN structure described in policy (P8). The WORK BREAKDOWN structure attempts to structure the project scope in a logical construction sequence in accordance with the COST CODING system to establish a common data base for estimating and scheduling the work. In this way, items in the estimate will match activities in the schedule, and MANPOWER PLANNING can be more readily tied to estimated man-hours and quantities from the estimate. Furthermore, when - -

-

Autonomous Project Team Policies

changes in scope or trends impact the man-hours, these changes can be impacted into the schcdule through the work breakdown structure. The schedule then becomes a live and dynamic planning tool from the beginning of the project to its end. While cost and scheduling have a significant impact on those problems related to evaluating and establishing the basic labor content and work force guidelines during project definition, these functions also penetrate the decision problems of field construction and project management. For instance, cost and scheduling analysis is the basis for solving such project management problems as revising the project scope, budget, and schedule, and making timely decisions when manpower, progress, schedule, manhours, and costs are deviating from plan. The key policy related to cost and scheduling execution is TRENDING (P32). In the head office the change order/trend system plays an essential role in identifying man-hour and cost impact due to design changes or design development. This provides the client with the opportunity to make design changes as required which stay within a specific budget. In the field, trending not only includes adjustments to the budget via client authorized change orders but also predictions of the most probable man-hours and labor costs based on the current performance of the labor force. These predictions are based on the flow of information as directed by PROGRESS REPORTING (P26), analyzing FIELD LABOR HOURS (P27), and DOCUMENTING ACTIVITY STATUS (P28). Scheduling deviations are also TRENDED in order to show the impact on overall project scheduled completion. Although any one deviation may not in itself cause a slip in the completion date, a combination of many deviations might impact completion. This may result in logic changes to the construction plan. TRENDING schedule deviations is supported by CRITICAL STATUS REPORTING, in which critical activities and those activities approaching criticality are highlighted by an exception report. In terms of either cost or schedule, the trending system must be timely so that both the client and project management can make decisions and take corrective action when a change order or trend is adversely impacting the budget and/or schedule. Scheduling is an important aspect of field construction and project management, As a planning tool, scheduling focuses on various time frames, from the total project picture to a weekly projection of the work, as indicated by CRITICAL PATH B A R CHARTS (P13). The weekly schedules are tied to the planned work developed for short-range schedules (e.g., three months), which are tied directly into comprehensive overall project schedules. The weekly schedule is also related directly to the planned progress to ensure that the required progress is achieved each week to meet the plan. This approach is defined under the SCHEDULING FOCUS (P14) and ensured because PROGRESS REPORTING (P26) must be rationally defined if all levels of schedules are to be based on progress targets. Furthermore, the SCHEDULING FOCUS (P14)emphasizes the importance of a defined method of evaluating progress. A realistic evaluation of progress provides a means of comparing actual progress with a target progress plan. Progress is also related to productivity

Management Attitudes of the Autonomous Project Team

201

because it is imperative to know the crew's performance in relation to the percent progress achieved. Finally, predicting progress based on a given quantity of work is the most realistic means of planning sufficient work to meet planned progress curves. By combining forecasted progress with current productivities and man-hour budgets, manpower can be forecasted. The Total Field Autonomy approach produces several significant changes in approaching the crew planning and management problems of field construction. The most salient policy is the WORK ORDER (P19). I t is a detailed and comprehensive planning tool which tends to eliminate "hip pocket" crew planning. The work order considers all the crew selection variables, such as quantities, construction methods, material procurement, and access, as they impact crew size and mix. It also considers current site conditions, the most economical construction approach, and schedule impact. Although the work order does not recognize ad hoc crew planning, it does recognize the need for good judgment, common sense, and past experience. This is reflected in CREW SELECTION (P20), in which a variety of crew selection models are incorporated into the work order planning process. The crew management policies further delineate the differences between the TotBl Field Autonomy and Field Based Management concepts. The key policy is CREW MANAGEMENT (P29), in which the basic philosophy of SCIENTIFIC MANAGEMENT coupled with past experience is the recognizable basis for crew management. Actual management techniques are described in policy 34, SCIENTIFIC MANAGEMENT. These are work sampling, activity analysis, time lapse, and so on. It is important to realize that scientific management techniques must be coupled with past experience to be effective. Furthermore, PERSONAL CONTACT (P24) and good relations between field management and the labor force is requisite to successfully applying these techniques. CREW PERFORMANCE (P30) is another significant policy that is an integral facet of crew management. This policy identifies a fundamental aspect of crew performance which is often overlooked, management effectiveness. The normally recognized components of crew performance are job conditions (e.g., weather) and labor productivity. If the field manager, even at the foreman level, is not planning the work properly, conditions can develop where the ineffective planning causes crew performance to falter. For example, the crew might be overmanned or material and equipment might not be properly supplied to the crew. The end result is poor performance due to expending more man-hours than are budgeted or having a considerable number of idle hours because of the lack of equipment or material. Therefore, when reviewing crew performance, the s u p e ~ i s i n gmanager must also look at the planning approach used by the personnel in charge of the crew. As one aspect of analyzing crew performance, PRODUCTIVITY (P31) must be considered. First, productivity must be defined so that it can be quantified. This can be done by developing a tight but realistic performance indicator. A common approach is to determine the earned budget man-hours (percent progress times the budget) and t o compare

Autonomous Project Team Policies

14.3

AUTONOMOUS PROJECT TEAM POLICY PLOTS

the earned man-hours to the actual hours expended. If fewer hours are expended than earned, crew performance will be above 100 percent. Another method is to evaluate the man-hours required to an activity based on site conditions, construction methods, and so on, and compare these hours with standard estimating man-hours. A ratio of the two might be 1.2 or 0.8, depending on the factors impacting the activity. This ratio becomes the performance target. Finally, an awareness of those components that impact productivity is essential, and it must be recognized that these components are manageable. Both CREW PERFORMANCE and PRODUCTIVITY are important policies in the Total Field Autonomy concept, and each represents a significant deviation in management from the other project team structures. Project management of manpower, including crew management, is based on similar MANAGEMENT-BY-EXCEPTION (P35) concepts as employed in the Field Based Management approach. The key concept at the Total Field Autonomy level in relation to MANAGEMENT-BYEXCEPTION is that potential problems must be uncovered within a suficient time frame to allow management to respond to the problem and initiate corrective action. (Although this approach is ideal, there will also be instances of crisis-type management.) Thus the information must be geared to exception reporting, as exemplified by the TRENDING system and CRITICAL STATUS REPORTING. The essence of successful project management as well as field construction and project definition is a PROJECT TEAM SPIRIT (P37), which embraces all members of the project team. Without this spirit of cooperation the integration of the project team is endangered and management effectiveness would be impaired. Therefore, PROJECT TEAM SPIRIT affects many manpower management functions. Even at the Total Field Autonomy level of project management there remain basic policies which are common to each and every project team structure. These policies are KEEP THE BEST (P15), COMPANY ALLEGIANCE (P16), UNION PRACTICE (P17), CREW MIX (P21), BEST MIX (P22), WALK JOB (P25), LABOR RELATIONS (P23), and PERSONAL CONTACT (P24). Only the last two policies change slightly, to cope with the more sophisticated systems produced by scientific management techniques and the demands of a totally integrated project team. The total integrated project team is the consumate form in project team development. It is a fully integrated, balanced, and capable team organization with the flexibility to operate autonomously at the field site. Its information system must be broad-based on the one hand, yet focus on a single data base on the other. This flexibility will support the vast needs of the project team and ensure that the project team is using common data. A schematic illustration of the policies involved in the execution of manpower management functions in the Totally Autonomous Field Management approach considered above is presented in Figure 14.1. The relevant policies are listed under each of the manpower management functions whose performance they influence.

PLAN P

(PI P6 P7

SCHEDULE

CONSTRUCTION V ~ l RECONNAISSANCE LABOR P6 RECONNAISSANCE SITE INSPECTION P7 A N D ANALYSIS

P14 PLANNING

P2

ACTIVITY DEFINITION

YSZ

BREAKDOWN

3

ALLOCATE

.A-

S -

CONSTRUCTION V A 1 SEQUENCE LABOR RECONNAISSANCE SITE INSPECTION p1 A N D ANALYSIS B A R CHARTS SCHEDULING FOCUS

ESTABLISH CONSTRUCTION SCHEDULE SITE INSPECTION AND ANALYSIS WORK BREAKDOWN COST CODES UNIT MAN-HOURS CRITICAL PATH B A R CHARTS SCHEDULING FOCUS DATA PROCESSING

I

P6 P14 P18 P34 P36

Y Wl P1 P2 P3 P4 P5 P37

ALLOCATE 2 PRE-JOB LABOR CONFERENCE FIELD STAFF P23 LABOR PROIECT TEAM RELATIONS FOCUS P37 PROJECT TEAM PROJECT TEAM P2 SPIRIT CONTROL 4 PROJECT TEAM P3 DESIGN PLANNED ROLES P4 PROJECT T E A M P5 MANAGEMENT P6 LABOR RECONNAISSANCE P37 PROJECT T E A M SPIRIT

YA~DETERMINE

PROJECT TRADE AND MAN-HOUR PROFILES LABOR RECONNAISSANCE SCHEDULING FOCUS MANPOWER PLANNING SCIENTIFIC MANAGEMENT DATA PROCESSING

Figure 14.1

I

Pi4 PI8 P34 P36 L

PROJECT TRADE AND MANPOWER PROFILES SCHEDULING FOCUS MANPOWER PLANNING SCIENTIFIC MANAGEMENT DATA PROCESSING

WR

PIS P16 P23 P29 P37

MONITOR M

RELEASE STAFF V ~ TO PROJECT PROJECT TEAM P26 FOCUS P31 PROJECT TEAM P32 CONTROL P35 PROIECT TEAM DESIGN PLANNED ROLES P36 PROJECT TEAM MANAGEMENT PROJECT TEAM SPIRIT J

b

Y s ~ DETERMINE

QUAN'TITY TAKE-OFF P9 COST CODES PI0 UNIT MAN-HOURS

ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF PROJECT TEAM FOCUS PROJECT TEAM CONTROL PROIECT TEAM DESIGN PLANNED ROLES PROIECT TEAM MANAGEMENT PROJECT T E A M SPIRIT

WORK W

WORK I-ORCE MANAGEMENT KEEI' I'IIE REST COMPANY ALLEGIANCE LABOR RELATIONS CREW MANAGEMENT PROJECT TEAM SPIRIT

R l HISTORICAL > DATA BASE LABOR RECONNAISSANCE HISTORICAL DATA PROGRESS REPORTING COST CODES SCIENTIFIC MANAGEMENT P36 D A T A PROCESSING P i 2 LABOR D A T A BASE J

SUMMARY l V ~ PROJECT REPORTS P6 PROGRESS REPORTING PROUCTIVITY P11 TRENDING P26 MANAGEMENTBY-EXCEPTION P9 DATA P34 PROCESSING

c

Y M ~CURRENT I

RECORD

YRZ GENERATELABOR)

PROJECT STATUS REPORTING P31 PRODUCTIVITY P32 TRENDING P33 CRITICAL STATUS REPORTING P36 D A T A ~

I

PhPI1 P12 P26 P9 P36

Y M PROJEC'I' ~ 1 1

I12h P31 P32 P36 P27

FORECAST PRRO(iR6SS REPORTING PRODUCTIVITY TRENDING DATA PROCESSING FIELD LABOR HOURS

Total field autonomy policies: policies influencing function performance.

MANAGEMENT DATA LABOR -.-RECONNAISSANCE HISTORICAL DATA LABOR DATA BASE PROGRESS REPORTING COSTCODES DATA PR0CES.TING

Y K ~I'ROJECT COST I 1

1'27 P8 P26 P32 P36

.4CCOUNTJNG FIELD LABOR HOURS WORK BREAKDOWN PROGRESS REPORTING TRENDING DATA PROCESSING COST CODES

PLAN P ' ~ 4 ESTIMATE LABOR V ~ 4 CONTENT P8 WORK BREAKDOWN P8 P10 UNIT MAN-HOURS PI0 P9 COST CODES P9 PI9 WORK ORDER P13 P21 CREW MIX P20 CREWSELECTION P14 PI1 HISTORICAL L DATA P12 LABOR D A T A BASE

SCHEDULE S

ALLOCATE A

DEVELOP WORK V ~ 4 PACKAGE DETAILED LOGIC WORK P18 BREAKDOWN UNIT MAN-HOURS P20 COST CODES CRITICAL PATH B A R CHARTS SCHEDULING FOCUS J

DETERMINE NUMBER OF F'IELD CREWS MANPOWER PLANNING CREW SELECTION

'

V

~

P17 P23 P29 P37

L

WORK W 4ENFORCE v JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS UNION PRACTICE LABOR RELATIONS CREW MANAGEMENT PROJECT TEAM SPIRIT

\

MONITOR M

3 ~ 4 ACTIVITY Y R ~UPDATE AND ANALYSIS REVISE WORK PACKAGE SCOPE P34 SCIENTIFIC P26 PROGRESS MANAGEMENT REPORTING p7 SITE INSPECTION P31 PRODUCTIVITY A N D ANALYSIS P32 TRENDING P23 LABOR P33 CRITICAL STATUS RELATIONS REPORT P24 PERSONAL < J CONTACT P27 FIELD LABOR HOURS P28 DOCUMENTED ACTIVITY STATUS P30 CREW PERFORMANCE

< ~ P S DEFINE WORK YSS PACKAGE P8 WORK BREAK P13 DOWN P9 COST CODES PI4 PI0 UNIT MAN-HOURS P13 CRITICAL PATH P26 BAR CHARTS

,

DEFINE C U R R E N T ~ A S PROJECT STATUS - P23 CRITICAL PATH B A R CHARTS P24 SCHEDULING FOCUS P21 PROGRESS P25 REPORTING P29

,

ADJUST CREWS LABOR RELATIONS PERSONAL CONTACT CREW MIX W A L K JOB CREW MANAGEMENT

Y ws ESTABLISH P17 P20 P21 P24 P29

RECORD R

,

V M ~LABOR ANALYSIS~RS FIELD CREWS P9 COST CODES P9 UNION PRACTICE P23 LABOR RELATIONS CREW SELECTION P23 CREW MIX P24 PERSONAL CONTACT PERSONAL P26 CONTACT P25 W A L K JOB CREW P27 P27 FIELD LABOR HOURS MANAGEMENT P30 p30 CREW PERFORMANCE P31 PRODUCTIVITY iP3 1 P34 SCIENTIFIC MANAGEMENT L

Figure 14.1 (continued)

LABOR PRODUCTIVITY COST CODES LABOR RELATIONS PROGRESS REPORTING FIELD LABOR HOURS CREW PERFORMANCE PRODUCTIVITY

-.

( ~ 6 DETAILED FIELD V ~ 6 REVISE V ~ 6 CONSTRUCTION QUANTITY SCHEDULE TAKE-OFF P24 pi- 3 CRITlCAL PATH P10 UNIT MAN-HOURS . P19 WORK ORDER BAR CHARTS P I A SCHEDULING P25 l a - ' FOCUS I P31 P21 p i 8 MANPOWER PLANNING P22 p26 PROGRESS REPORTING p3 1 PRODUCTIVITY p33 CRITICAL STATUS REPORTING P36 D A T A

ASSIGN INDIVIDUAL WORK TASKS PERSONAL

W6

1 gzJ% 11

,

P7

P10 p13 P19 p20 P21 P3 1

ESTABLISH CREW REQUIREMENTS UNIT MAN-HOURS CRITICAL PATH B A R CHARTS WORK ORDER CREW SELECTION CREW MIX PRODUCTIVlTY

S7 -.

PI0 P13 P14 P19 P30 P31

PLAN WORKFACE~SS LAYOUT P19 W O R K O R D E R P20 CREW SELECTION P19 P21 P21 CREW MIX P30 P30 CREW PERFORMANCE P31

fpe

SCHEDULE PROJECT CREWS (/NIT MAN-HOURS CRITICAL PATH B A R CHARTS SCHEDULING FOCUS WORK ORDER CREW PERFORMANCE PRODUCTIVITY

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PRODUCTIVITY CREW MIX BEST MIX

SOLVE HUMAN RELATIONS PROBLEMS P23 LABOR P24 %:C%?l CONTACT P25 W A L K JOB P29 CREW

V ~ 6 WORK PROGRESS V ~ 6 QUANTmIES I N PLACE P7 SITE INSPECTION A N D ANALYSIS P25 W A L K JOB p26 PROGRESS P9 COST CODES REPORTING P13 CRITICAL PATH B A R CHARTS 1 ~ 2 8 DOCUMENTED I ACTIVITY STATUS I P25 W A L K JOB P27 FIELD LABOR P31 PRODUCTIVITY HOURS P28 DOCUMENTED ACTIVITY STATUS P34 SCIENTIFIC MANAGEMENT

I

. I

I

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~

7 INITIATE \/M7 P7 INDIVIDUAL WORK TASKS P24 PERSONAL P9 CONTACT P25 P34 W A L K JOB P29 CREW \ MANAGEMENT )

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,

P31

W8 P24

I

P23

EXECUTE WORK PERSONAL CONTACT LABOR RELATIONS

Figure 14.1 (continued)

II

M8

P7. .

PI3

LABOR HOURS COST CODES PROGRESS REPORTING FIELD LABOR HOURS DOCUMENTED ACTIVITY STATUS PRODUCTIVITY

\

Y R ~ FIELD AUTHOR^)

FIELD INSPECTION I SITE INSPECTION IP23 A N D ANALYSIS CRITICAL PATH B A R CHARTS PERSONAL CONTACT W A L K JOB PROGRESS REPORTING FIELD LABOR HOURS DOCUMENTED ACTIVITY STATUS CREW PERFORMANCE PRODUCTIVITY SCIENTIFIC MANAGEMENT

DOCKETS LABOR RELATIONS

CHAPTER

15

Manpower Management Decision Processes Management decisions play a dominant role in any management undertaking. At the initiation of management effort, they establish the organizational structure, prescribe the operational boundaries, and create the management environment within which decision makers are to operate and thereafter for the duration of the undertaking provide the impetus, and life sustenance, for continued management effort. Typical examples of basic decisions that mold the management environment are policy statements governing future behavior and the definition, implementation, and maintenance of routine processes. These types of decisions have longstanding validity and effect, and need formulation only at infrequent intervals. In many management situations, however, problems arise that differ from each other only in terms of the relative magnitudes of recurrent issues or are based on the specific circumstance of the current temporary situation. In these cases management is called upon repeatedly to make decisions and resolve issucs that have only temporary validity. In either case, a considerable understanding of the modus operandi of the management effort, and the managerial skill of decision makers, can be gained from a study and understanding of the decision processes that are involved. This chapter introduces the basic project manpower decision processes that are relevant to the planning and management of construction projects. As developed in Chapter 3, each basic management decision process can be described in terms of its constituent management functions, the manner in which these functions are performed, who performs the functions, and the policies, documents, and informational flows that are involved in their performance. The management approach of the project team to project management can then be described using these basic decision processes. In this way, by examining in turn each different management approach to project management, a general overview of project management can be

Manpower Management Decision Processes

15.1 MANPOWER MANAGEMENT DECISION PROCESSES

207

established and related to the development of the project team structure and the different approaches to manpower management. In the various management phases in the construction management process (i.e., during project definition and planning, project initiation and field construction, and overall project management) a number of manpower oriented problems must be addressed by management. These problems are encountered on every construction project, and the consequential need for their evaluation and solution leads to the initiation, and performance, of a variety of decision processes. Many of these decision processes, such as estimating and crew management, are identified with specific construction management personnel-the estimator and foreman/superintendent-and have taken on a universal or basic purpose. Others, however, are more or less formalized, depending upon the magnitude of the problem that exists on a given project and the management approach of the project team. These generic decision processes are used in this chapter, and in the companion volume of this series, as a basis for describing the manpower management decision processes used in the industry and accordingly will be identified and labeled as basic decision processes. The generic decision processes can be conveniently divided into the three main groupings of project definition, field construction, and overall project management, to correspond with the broad division associated with the management components of the PTC management approach to project management. Each major group is divided into four basic decision processes, so that twelve basic decision processes are proposed as the basis for describing the manpower management processes of the different management approachs to project management. The manpower oriented decision processes associated with project definition and planning are directed to the determination and evaluation of the anticipated manpower content and spread of a project. The basic decision processes are: DP1 DP2

DP3 DP4

Initiate Project Action: concerned with the initial decision to bid and the establishment of the project team Project Planning: concerned with establishing the special manpower requirements called for by the nature of specifically proposed construction methods Estimate Preparation: concerned with the determination and evaluation of the anticipated manpower content of the project Project Scheduling: concerned with the determination of the project manpower requirements profile for the duration of the project

Together these decision processes establish fixes on the manpower content of the project and provide project management with labor budgets and schedules. The manpower management oriented decision processes associated with field construction are directed to planning, directing, and management of

Management Decision Processes

the field workface effort during the period of construction. The basic decision processes are: DP5 DP6

DP7

DP8

Field Staffing: concerned with the setting up and management of the field management team Crew Planning: concerned with the planning and scheduling of crew work sequences and the initiation of all preparatory and backup work leading up to the initiation of work Crew Managemenk concerned with the actual establishment and direction of field construction crews and the solution of individual labor management problems Work Execution: concerned with the individual decisions involved in the instant-by-instant and blow-by-blow involvement of construction labor in the field work effort

Together these decision processes provide the field management format for manpower management. Their proper performance establishes the professional and work motivation environment that is essential for any effective and coordinated work effort. The manpower oriented decision processes associated with overall project management are directed initially to the monitoring of labor's involvement in the project and the assessment of the effectiveness of labor's performance. Using this information and knowledge of the current project status, project management's main concern, however, is with the implications that follow from project projections and in the determination and implementation of corrective and remedial management action. The basic decision processes are: DP9 DPlO

DPll

DP12

Field Monitoring: concerned with the visual inspection of work progress and quality and the evaluation of labor performance Project Status, Analysis, Reporting: concerned with the determination of the current project status in relation to both budgeted and actual labor performance to date, project trending, and the implications of forecasted project positions Project Management: concerned with the making of corrective and remedial management actions and their implementation at the field level Historical Labor Data Retrieval: concerned with the acquisition and maintenance, of reliable, up-to-date information and labor performance

Table 15.1 presents a description of the twelve basic labor and manpower management decision processes in terms of a number of initiating (or component) problem focused management questions. These component questions are intended to expose both the nature and breadth of each basic decision process. It is not too difficult to see that the importance or relevance of these component management questions will change from

/ .' TABLE 15.1

MANPOWER MANAGEMENT DECISION PROCESSES

Number Label

Scope

DP1

(a)

Initiate Project Action

(b)

(c)

(d)

DP2

Project Planning

(a)

(b)

(c)

What Project Team? The determination of the size and organizational stmcture of the project team that is compatible with project requirements, the desired management approach to project management, and the involvement in the engineering, design, construction, and management phases of the project. What type of engineering and constmction is required? What level of expertise? How many kinds of special expertise, and what level of staffing is required for how long? What is the best organizational growth pattern for the engineering and design team that meets client requirements and expertise resource constraints? Who Is Available? What is the best organizational growth pattern for the project team in relation to the project needs, the attainment of management objectives, and the availability of suitably experienced key staff? Where are suitably trained key staff? Can they be released to the project, acquired by hiring or training? What professional manpower availability and management problems must be addressed? When? When can staff be released to the project, and do they need special orientation and training programs? How Is Project Team to Be Managed? How is the effectiveness of the project team measured? How is the growth of the project team controlled? What Are Project Requirements? What are the project requirements for specialist labor skills, etc., in relation to the scope of the project, the proposed construction plan, and the milestone constraints? What Is Labor Availability? What labor is available and what is the evaluation of their skill levels, attitudes to work, etc.? What labor agreements are in effect? Are there restrictive practices? What Labor Management Policies? What labor management policies are needed for this project? How will they influence the negotiation of labor agreements, the establishment of hiring procedures, and the determination of the need for special training programs?

Table 15.1 (continued) Number Label

Scope (d)

(e)

DP3

Estimate Preparation

(a)

(b)

(c)

DP4

Project Scheduling

(a)

(b)

(c)

(d)

DP5

Field StafIing

(a)

What Is the Level of Anticipated Labor Productivity? What is the expected labor productivity for this project in the current work and regional environment? What level of labor productivity will become the basis for project planning? What has to be done to achieve desirable levels of labor productivity? What Will Be Subcontracted? What work areas and trades are better subcontracted out? What work must be done in house for economic, quality, and time control purposes? What is Manpower Content? The determination and evaluation of the manpower content of the project in relation to the work content of the project, construction methods, and the constraints imposed by the site and workface environments. What Labor Productivity? What is the prediction of labor productivity and the impact of worker motivation and learning curves on work rates and productivities? What Is Estimated Labor Cost? What are realistic labor summaries and budgets for this project and construction environment? What Are Manpower Requirements? For a given construction sequence and project milestones, what are the required manpower, trade, and skilled labor levels? What Schedule? For a given manpower availability and predicted labor productivities and progress targets, what is the best project schedule? What Are lmplica~ionsof Current Status? Given the current project status, what are the projected labor and manpower requirements? What Is Best Use o f Labor? For a given period of time, what is the sequence and scheduling of project activities that most effectively uses known labor resources? What Field Team? What field management approach is required for this project? What functions must be performed and what level of field control and autonomy is desirable? What is the best size for the field team, and

Table 15.1 (continued)

Number Label

Scope

(b)

(c)

(d)

DP6

Crew Planning

(a)

(b)

(c)

(d)

DP7

Crew Management

(a)

what organizational structure should be set uv? Who? Who is available having the right - qualxcations and experience? Who is acceptable to the client? Are the proposed team members compatible and capable of effectively working within their delegated authority and roles? When? When can field staff he released to the project, and do they need special orientation and training programs? How Is Field Team to Be Managed? How is the effectiveness of the field team meiisured? How is the growth of the field team controlled? What Is to Be Done? What are the magnitude, work content, construction method, and skill requirements for this work package? Who Can Do It? What is the availability of suitably experienced and skilled foremen and crews? Who is best suited for this work assignment? HOW Will It Be Done? What mix of trades or skills are required for the tasks? What crew size and crew member work assignments are planned for this work assignment? Is this compatible with workface conditions, accessibility, work skills, work effort levels, and desired work duration? Is this crew size compatible with the foreman's ability to manage and the work environment? When Will It Be Done? What are the necessary prerequisites in terms of establishing material dumps, processing equipment, etc.? When will access to the workface be made available? When will the chosen foreman and crew be ready to start the work assignment? How Many Crews? How many specialist trades are involved in the project? How many different work areas are needed at any one time? What are desirable crew sizes? How many qualified foreman are available? What is desirable level of flexibility and use of work groups? Can variations in workface levels be best managed by changes in the numbers of crew or in the sizes of individual crews?

-

Table 15.1 (continued) -

Number Label

DPS

Work Execution

DP9

Field Monitoring

DPlO

Project Status, Analysis, Reporting

Scope Hiring and Firing? What information is required on new applicants? What checks should be made on past experience and performance? Should proficiency tests be made? Is applicant work motivated? Who should interview applicant? What working conditions should be prescribed? How can applicant be best incorporated into work force? What guidance is necessary? How should the worker be cautioned that his performance is unsatisfactory? Who should fire? How and when should a worker be fired? What Do 1 Have to Do? What has to be done now? How am I going to do it? Who will help me? Where are the tools, equipment, and material? What quality of work is required? What is to be done next? Will we keep the same work teams? Can I move onto the next work task as soon as I am ready, or must I wait for the foreman's direction? What Is My Work Motivation? Am I working automatically? To do just enough to avoid disciplinary action? To exercise my skills? To show that I can do a first-class job? Because I am interested in working? To gain approval from my workmates, foreman, and others? Because I am building this job and I identify my effort with the finished product? Is It Being Done Correctly? Who is doing what? Is it being done correctly? Is sufficient skill evident? Is the quality of finish acceptable? Do I have to show them how to do it? Should I correct them? Should I select some men for praisc? Which ones? Have I motivated all the crew? How can I help or cope with this particular problem? What can I do to make the work more productive and satisfying? What Has Been Done? Just how much has been done? Is it correctly done and at an acceptable quality? Who has been doing this work? Is it sufficient? How can the desired output and quality of work be achieved? How will I assess the work that has been done? Can I remember the details, or will I write it down? What records must I keep? How Is Status to Be Defined? How complex is project statusing? What labor units are required? How accurate must it be? How is project status to be portrayed? How A m I Going to Do It? Where are the raw data? How do I get them? How accurate are these data? What will I do with these data?

213

The PTC Manpower Management Decision Process Table 15.1 (continued)

Number Label DPll

Project Management

Scope (a)

What Project Reports Are Required?

Overall summaries? Detailed breakdowns and dissections? How frequently should these be prepared? Are they effective for our purposes? (b)

What Is Current Position?

Where do we stand? Do we have sufficient information? Can we get more? What are the implications of the present status? (c)

What Should W e Do?

How can we proceed? Who will implement our decisions? How should we operate? What checks should we implement? DP12

Historical (a) Labor Data Retrieval

What Data Should Be Kept?

How much data? What range of data? How useful and accurate are these data? Who will want these data? When are we likely to want them again?

(b) How Will We Keep It? Should we keep all the raw data just as they come? Should we process the data first? What data structure should we develop? (c) How Will W e Release Data? Must we keep original data? Can we risk releasing master records? What format is necessary or relevant?

15.2 THE PTC MANPOWER MANAGEMENT DECISION PROCESS

project to project and with the management approach of the construction firm and project team. For example, the first decision process, DP1 IMTIATE PROJECT ACTION, may well be a nonissue for a small firm because of the very limited choice and availability of key staff, whereas for a large firm considering a Total Field Autonomy approach to a project, this decision process may require prolonged and continuous effort in its solution. The basic decision processes are used in the following sections to both structure and expose the overall decision approach of the small, mediumsized, and large firm and the totally autonomous project management team. The Project Team Component management approach addresses several basic manpower management problems at the small firm level. Those problems addressed by the head office are the determination of project labor content and the establishment of work force guidelines for field management. At the field level the foreman/superintendent must establish crew sizes, schedule crews, and solve crew member work relations to meet the required work load of the project. Finally, head office management strives to effectively monitor work progress and evaluate and revise project scope, schedule, and cost efficiency, while constrained to actively pursuing new projects and to performing project definition and business operation service functions.

I\

Management Decision Processes

These manpower managemcnt problems can be referenced against the basic decision processes involved with project definition, field construction, and overall project management (Section 15.1). In turn, the decision processes are referenced against seven basic project milestones common to the small construction project: (1) the decision to bid, (2) submitting the bid, ( 3 ) project award, (4) issuing the project to the field, (5) finishing permanent facilities, ( 6 ) impacting change orders, and (7) contractual completion. The integration of these decision processes with their problem focus and project milestones produce the general structure of the decision process, which is illustrated in Figure 15.1. The sequential nature of the PTC approach can be clearly identified from the-natural progression of the decision processes, beginning with project initiation through to project management. However, notice that at the field level both crew planning and crew management decision processes receive revised scope and schedule changes from the head office project management phase. At the Project Team Component level, only ten of the twelve basic decision processes are required, as shown in Figure 15.1. The two decision processes that are not required (i.e., DP2 PROJECT PLANNING and DP5 FIELD STAFFING), primarily address manpower management problems associated with projects that have both a large manpower content and significant project team organizations, such as projects in the large firm environment. Thus both of these decision proc~ssesare essentially nonissues at the small firm level and are not considered in the PTC manpower management decision process. The PTC decision process can be further illustrated by identifying those manpower management functions associated with each decision process. This is accomplished by plotting each decision process on the Manpower Management Function chart (Figure 2.7), as shown in Figure 15.2. The field construction decision processes cover the lower half of the chart and the head office oriented decision processes cover the upper half of the chart. If the manpower management plot of each project team member of the small firm is overlaid on the plot in Figure 15.2, the role of each project team member in a decision process can be identified. Figure 15.3 displays the overlay of the manpower and decision process plots. In terms of the managerial hierarchy of the project team organization, as expected the project manager is concerned with those decision processes related to the overall planning, scheduling, and control of the project that involve project initiation, scheduling, status analysis, reporting and management decision processes. Field construction decision processes are totally performed by the superintendent and foreman. A further understanding of the roles of project team members in the decision process can be made by analyzing selected decision processes, such as those of the field construction phase. In Figure 15.4, the superintendent/foreman plots are shown and contrasted with the crew planning, crew management, field monitoring, and work execution decision processes. The duties that correspond to each function are extracted from the job description plot developed in Chapter 6 (Figure 6.8). For example, in crew planning, the superintendent issues work plans while the

HEAD OFFICE PROJECT DEFINITION

DECISION TO BID

INITIATE PROJECT ACTION

ASSIGN STAFF

.c

HISTORICAL

DETERMINE LABOR CONTENT

ESTIMATE PREPARATION

RETRIVAL

>SUBMIT

BID

SUCCESSFUL BID ESTABLISH WORK FORCE GUIDELINES

SCHEDULING

+

I

HEAD OFFIC~! COMPONENT

I

ISSUE JOB TO FIELD

I

FIELD

FIELD COMPONENT

ESTABLISH CREW SIZES AND SCHEDULES ENFORCE WORK RELATIONS AND CREW ADJUSTMENTS

MONITORING

WORK EXECUTION

WORK VALUE; WORK RELATIONS

A F I N I S H E D PRODUCT

HEAD OFFICE COMPONENT

/ PROJECT MANAGEMENT PHASE

PROJECT STATUS, ANALYSIS. REPORTING

MONITOR PROGRESS AND ACTIVITY STATUS

REVISE SCOPE AND SCHEDULE

CONTRACTURAL COMPLETION

CHANGE ORDER LEGEND:

PROJECT MILESTONES DECISION PROCESS SEGMENT

0

PTC PROJECT TEAM COMPONENT

LABEL +INFORMATION

Figure 15.1 PTC manpower management decision process.

FLOW

Management Decision Processes

216 PLAN P

,c,I

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ALLOCATE A

S \

CONSTRUCTION RECONNAISSANCE

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\---/

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I I I \

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,

\,---/---

/ / /

/

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I,

\ \

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Figure 15.2

PTC functional decision area plots.

foreman specifies his requirements. In crew management, the superintendent establishes crew directives and maintains productive crews. The foreman handles the face-to-face direction of individual crew members and advises the superintendent of problems and desired crew changes. In field monitoring, the superintendent performs field inspections to ascertain work progress and work force size and to report field activities to the head office. The foreman checks individual worker output and assigns hours on time cards which are handed to the superintendent. The actual management approach adopted for each decision process

The PTC Manpower Management Decision Process

217

CREW

Figure 15.3

Decision area/manpower management plots.

segment depends upon the number, type, and sequence of the management functions involved (i.e., the internal process structure), the nature of the relevant policies and their manifestation into documents, and the attitudes and manner in which project team members follow procedures and policies. Thus further analysis of a decision process in terms of policies, documents, and so on, can be accomplished by using the network technique described in Chapter 3. The estimate preparation decision process of the small firm was discussed in detail in Section 3.4. The decision network describing this process is shown here as Figure 15.5 to illustrate a methodology of further analyzing and portraying decision processes. The detailed description of the manpower management procedure of a typical small firm in terms of the basic segments of the manpower management decision process (using the decision network technique) is left to the companion volume of this series.

218

Management Decision Processes

FROM HEAD OFFICE (SCHEDULING)

II

TO HEAD OFFICE

ACTIVITY CONTENT,

MAINTAIN: PRODUCTIVE

REQUIRED. AND EQUIPMENT P7 ESTABLISH:

R6 M6 INSPECT: D A I L Y FIELD

W3 HIREIFIREJ

DOCUMENT. D A I L Y FIELD

RED'RECT:

PERSONNEL S7 DETERMINE:

CONSTRUCTION METHODS, WORK TASK DURATIONS. CREW SIZE AND

M7 INSPECT:

W4 ENFORCE: JURISDICTIONAL AREAS

CREW START DATES

M8 INSPECT:

W5 ASSIGN: FOREMEN SET UP: CREWS

MATERIAL DUMPS EQUIPMENT POSITION SUPPLY ROUTES

HOURS ASSIGN: COST CODES

PROPER SKILL LEVELS

P8 LOCATE:

R7 REVIEW:

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c

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FILLS IN:

HOURSWORK PER TASKS

HOURS ON TIME CARDS

/

I

Ma CHECKS: QUALITY AND WORKER OUTPUT

CREW MEMBER ON WORK ROLE

WORK DIRECTIVES

WORK EXECUTION

Figure 15.4

15.3 THE TPM MANPOWER MANAGEMENT DECISION PROCESS

Management role/decision segment plot: field construction.

The Traveling Project Manager management approach focuses on manpower management problems similar to those of the small firm. For instance, those problems initially addressed by the head office remain the determination of project labor content and the establishment of work force guidelines for field management. To ensure that these guidelines are both acceptable to field management and subsequently carried to the field, the key superintendents participate in project scheduling. As a result, field staffing emerges prior to project scheduling as a salient manpower management problem in the project definition phase. -

-

PLANS SPECS

FROM PROJECT INITIATION

COST CODES TO CLASSIFY

DECISION PROBLEM ESTABLISH LABOR CONTENT

0

(IN TERMS OF LABOR COST)> LEGEND POLICY DOCUMENTS GENERATED INFORMATION

1 O P

SEQUENCE OF FUNCTIONS AND INFORMATION FLOW MANPOWER MANAGEMENT FUNCTION

FROM HISTORICAL DATA BASE

1 HISTORICAL

QUANTITY SHEETS

1

USE ESTIMATE SHEETS

POLICY 5 UNIQUE

/

I ESTIMATE LABOR LOW EST RESPONSIBLE BIDDER?

...

I I

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\

. P-DOC , 3 . 3

\,P-DOC

3.4

SHEETS

I

TO PROJECT SCHEDULING

POLICY 4

EST1MATING DOCUMENTS TO PROJECT SCHEDULING

Figure 15.5 Estimate preparation decision process for small firm.

Management Decision Processes

At the field level the superintendent and foreman must establish crew size and solve crew work relations to meet the cost and scheduling directives for the project. The project manager and possibly other field staff will often assist the superintendent and foremen in crew planning and management. The project manager coordinates the monitoring of work progress to ensure that proper field data are recorded, processed, and evaluated in a timely manner. In this capacity he maintains a degree of involvement in field monitoring such that critical field problems demanding immediate action can be resolved without toplevel management concurrence. Finally, the project manager informs top-level management of project status and the effective use of project resources, and in turn provides field management with directives when cost efficiencies, revised scope, and schedules alter the construction plan. The general structure of the Traveling project Manager decision process can be examined by referencing the pertinent decision processes against the basic project milestones introduced in Figure 15.1. A schematic illustration of the resulting overall decision process of the medium-sized firm is shown in Figure 15.6. However, notice that only eleven of the twelve basic decision processes are required, as shown in Figure 15.6. The decision process which is not required (i.e., DP2 PROJECT PLANNING), addresses manpower management problems associated with projects that have a large manpower content such as projects in the large fir& environment. In contrast to the small firm, the medium-sized firm does require the field staffing decision process (DP5 FIELD STAFFING) but only in terms of the need for early staffing of key job superintendents. While the field staffing problem becomes critical at this level, it does not have the significance of field staffing at the large firm level where large field management teams emerge. The two critical changes in the decision process structure of the medium-sized firm compared with the small firm are field staffing in the head office, and the head office and field interface through the project management decision phase. The former change permits field participation in overall project planning and scheduling, while the latter change allows the Traveling Project Manager to interact continuously with the field. The project scheduling, project status, analysis and reporting, and project management decision segments begin to address their decision problems in greater detail, as indicated by the increasing number of manpower management functions included in these decision segments. This 7 . an is exemplified in the decision area functional plots in ~ i ~ u r e l 5 . As example, the analysis of work force guidelines includes a conceptual formation of PROJECT MANPOWER PROFILES (S3 and A3). A project management focus on an integrated labor cost performance system emerges in an effort to more effectively identify problem areas by comparing current progress, schedules, and labor cost status against labor cost budgets, planned progress, and schedules. Thhs the labor cost performance system provides an early warning of problems for which corrective actions can be formulated and implemented immediately.

The TPM Manpower Management Decision Process DECISION TO BID /--

i

1

I

HISTORICAL LABOR DATA RETRIEVAL

1

.

o

x

\

DESIGN TEAM AND ASSIGN STAFF

\

ESTIMATE PREPARATION

DETERMINE LABOR CONTENT

* SUBMIT BID

'

c T DEFINITION

SUCCESSFUL BIDDER

SCHEDULING

STAFFING

ASSIGN FIELD STAFF WORK FORCE GUIDELINES ANDWORK FORCECONTENT

ISSUE JOB TO FIELD CHANGE ORDERS CONTRACTURAL COMPLETION ANAGEMENT

MONITOR PROGRESS AND UNIT COSTS. LABOR COST PREDICTIONS AND REVISE SCOPE. ~ COSTS. AND SCHEDULES CREW SIZING AND SCHEDULING

MANAGEMENT

MONITORING

EXECUTION

CREW MOBILIZATION WORK RELATIONS AND CREW ADJUSTMENTS

WORK: WORK VALUE

FIELD CONSTRUCTION FINISHED PRODUCT

-

INFORMATION FLOW

Figure 15.6

TPM manpower management decision process.

The d e c i s i o n makers involved with each decision segment can be identified by plotting onto Figure 15.7 t h e plot for each project team m e m b e r (see Figure 7.6). The r e s u l t i n g project team manpower and decision process plot i s shown in Figure 15.8. As expected, the superint e n d e n t ' s plot enters the head office project planning and scheduling decision segments. The project manager's plot illustrates the close interface with field c o n s t r u c t i o n in several decision areas, such as crew planning and crew management. The PM s t i l l maintains his primary role in project planning, scheduling, and control through the project management phase.

Management Decision Processes

222 PLAN

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I n this decision phase, he also interfaces with the superintendent with respect to the project activity analysis and labor unit cost evaluations, which are problems of project statusing. These interface points with the field ensure the effective implementation of the Traveling Project Manager approach in the decision structure of the medium-sized firm. The eleven basic segments of the decision process are identified in Figure 15.6, and with the relevant management functions, policies, and documents form the structure for the detailed description of the manpower management procedure found in practice at the medium-sized firm level. This detailed description will be left to the companion volume in this series.

4

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223

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Figure 15.8 TPM management roles and decision segment plot.

15.4 THE FIELD BASED PROJECT MANAGEMENT DECISION PROCESS

The decision problem focus changes significantly under the Field Based Project Management approach. In the head office, the project team is initially designed and developed in detail to reflect the desired level of management control by ensuring that all functions are properly staffed with decision makers. The planned manning of the project team is c a r e fully considered and mapped for the life of the project. As part of the overall project team development, the field management team is also designed and key positions are staffed early in the project definition phase to assist in project scheduling. The basic determination of project manpower content and work force guidelines must be integrated in order to evaluate the field work force magnitude in terms of total project manpower and craft manpower. De-

Management Decision Prucesses

pending on the nature of the contract (e.g., design
.

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The Field Based Projeet Management Decision Process

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Figure 15.9 Field Based Project Management decision process. (a) Project definition. (b) Field construction. (c) Project management.

o c c u r s . The i n t e r f a c e of project s c h e d u l i n g and e s t i m a t e p r e p a r a t i o n i s particularly important b e c a u s e e s t i m a t i n g d a t a are required for the evaluation of m a n p o w e r p r o f i l e s . S e c o n d , b e c a u s e of the heavy field c o m m i t m e n t , field staffing and project s c h e d u l i n g a l s o have a field f o c u s (see Figure 1 5 . 9 ~ )Finally, . an early link with the project management p h a s e b u r g e o n s a s a r e s u l t of t h e d e s i r e to c o n t r o l t h e growth and e f f e c t i v e n e s s of t h e project t e a m , e s p e c i a l l y t h e e n g i n e e r i n g and d e s i g n g r o u p s . In t e r m s of project m i l e s t o n e s , two critical m i l e s t o n e s of project definition a r e the c l i e n t approval of both definitive-type e s t i m a t e s and control b a s e s c h e d u l e s . In addition, as d e s i g n d e v e l o p s client a p p r o v e d change o r d e r s enter t h e s y s t e m and are i m p a c t e d into both the s c h e d u l i n g and e s t i m a t i n g d e c i s i o n processes. The field c o n s t r u c t i o n phase in the c o n s t r u c t i o n p r o c e s s h a s t h e s a m e b a s i c format a s that for the s m a l l and m e d i u m - s i z e d firm (Figure 15.9b). The s i g n i f i c a n t change o c c u r s with the i d o w of data from field b a s e d project d e f i n i t i o n and p r o j e c t management d e c i s i o n segments. T h i s type of input i m p r o v e s both the planning and s c h e d u l i n g of c r e w s a s well a s crew management.

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The project management phase i s comprised of two decision processes: project status, analysis, and reporting and project management. As depicted in Figure 15.9c, the decision segments of the project management phase are performed at both the head office and field levels. In the head office the focus i s twofold: first, to monitor and control the project team, including the engineering/design groups and engineering/design progress and performance, and second, to support construction in terms of summary level reporting, scope revisions, and cost and scheduling assistance. If engineering/design i s not applicable, then the role of the head office decision segments of project statusing and management i s greatly reduced. Thus the critical change in the decision approach of the large firm over that of the medium-sized firm i s the heavy field comrnit-

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Figure 15.11 Ideal division of manpower management function-Field Based Project Management.

ment toward project management. This expands the decision-making capability of the field team and begins to provide an autonomous field operation. When examining the functions performed under each decision process segment, it becomes clear that the field construction phase has a stronger problem oriented focus. As shown in the decision area functional plot (Figure 15.10), the crew planning decision segment includes four new functions (P5, S4, SS, and A4), which strengthens the crew planning effort by including the work package approach. This change, coupled with a field based project scheduling decision segment, provides field construction with a powerful planning focus. To complement the increasing emphasis in crew planning, project statusing and management must be

The Total Field Autonomy Decision Process

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Figure 15.12 Management roles for crew planning: Field Based Project Management.

15.5 THE TOTAL FIELD AUTONOMY DECISION PROCESS

located in the field to provide more timely status, progress, and labor performance information as related to work packages. The project team's role in the decision process can be evaluated by comparing the manpower management function plot for each team member (Figure 15.11) with the decision area functional plot (Figure 15.10). Although an overlay of these two plots could be useful, it is best, because of the complexity and size of the project team, to analyze individual decision segments in relation to their project team member's plot. An example of such a plot for crew planning is shown in Figure 15.12. The depth and detail of crew planning is evidenced by the number of project team members that participate in this decision segment and the increased number of functions The superintendent and scheduling engineer, under the guidance of the general superintendent, identify work package areas, their contents, and t h e scheduling of the work packages. This is dons as a preparation for the detailed establishing of crew requirements, work locations, and crew scheduling sequences as performed by the superintendent and foreman. Thus the superintendent assumes the key position in the crew planning decision process. The decision segments described in Figure 15.9, together with the relevant manpower management functions, policies, and documents, form the structure for the detailed description of the manpower management procedure found in practice at the large firm level. This detailed description will be left to the companion volume in this series. The decision problems, the general form of the decision process, and the functions involved in each decision segment of the Total Field Autonomy approach is similar in most respects to the Field Based Management approach. The major obvious change in the overall decision process is the potential location of all decision segments in the field. A schematic illus-

I

Management Decision Processes

tration of the Total Field Autonomy management decision process is provided in Figure 15.13, but with only limited detail. As shown in this example, a total project definition phase is located in the field. The degree of project involvement in terms of project initiation, planning, estimating, and engineering/design in the field would depend heavily on client requirements and the location of the project. In almost every project, the head office will support the field with a project definition focus. The head office commitment will, of course, depend on the degree of field project definition. The decision area functional plots are identical to those plots developed in Figure 15.10 for the large firm. The roles of the project team members

Figure 15.13

Manpower management decision process: Total Field Autonomy.

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Figure 15.14 Management roles in crew planning decision segment: Total Field Autonomy. (a) Crew planning decision segment. (b) Management roles in crew planning.

Management Decision Processes

in each decision segment will change as a result of the manpower management function plot of the project team (see Figure 9.8). For example, the crew planning decision plot, Figure 15.14a, would include the same functions for both the Field Based and Total Field Autonomy management approaches. However, the role of the project team in this decision process changes with the introduction of the methods engineer and the increased number of personnel involved, as indicated by the project team plot (cross hatched area) of Figure 15.146. Thus an increasing focus and management penetration will result in the performance of the crew planning decision segment at the total field autonomy level. The decision process described in Figure 15.13, together with the relevant manpower management functions, policies, and documents, forms the structure for the detailed description of the manpower management procedure found in practice at the totally autonomous team level. This detailed description will be left to the companion volume in this series.

CHAPTER

16

Project Manpower Management: An Overview

16.1

The management function approach to project manpower management, together with a focus on decision processes and manager/supervisor roles, establishes a framework methodology for viewing management in action. The methodology has been used to describe a variety of current management approaches in the project management area. It has also been used to gain an understanding of the organizational behavior of the project management team, especially in relation to the prevailing construction environment and the modus operandi of the parent construction company. A considerable amount of-practical information has been introduced into the text. This practical material emerges whenever the methodology is brought to bear on current management practice. Thus material such as job descriptions, manager/supervisor roles, manpower management policies, the information approach to decision processes, and so on, is presented. This practical material is not generally available elsewhere. Finally, the material in the Appendix presents, in our view, the most detailed description of the project manpower management area in existence. This concluding chapter draws together a few integrating management concepts and general conclusions. This is done by viewing the different management approaches discussed in the book from an overall or holistic viewpoint. In the project management of a construction project, the management role of individuals spans the managerial hierarchy from the foreman to a top-level executive project manager. The focus and depth of an individual's role depends on the functions he performs, his organizational responsibility and authority, the technical expertise demanded by the project, and the ability and skill level of the individual. The individual's role in project management can further be defined by the management area in which he is involved. The construction environment is comprised of a broad range of projects, from the small project with its limited management demand to a large

An Overview

technical engineering project where complexity and volume inherently increases management demand. This range of project environments results in a changing focus in many management or professional areas, and leads to the emergence and development of professional management roles. A sharper management focus in all professional or management areas occurs as the project's technical complexity, volume, and management importance increases. The organizational and managerial environments that lead to the formation of professional areas can be understood by analyzing the growth development of a management area or professional position over the range of project environments. In specific terms the emergence of a professional area can be seen in the changing location and focus of the functional plots of project team members. Before proceeding further, it will be helpful to summarize the use of functional plots in viewing management roles. First, the plots can portray a sequence of changing management responsibilities. Second, a series of plots can be readily compared and analyzed visually. Third, rough measures of performance and responsibility can be readily quantified through visual inspection. Finally, functional plots can be adjusted or manipulated to reflect a more appropriate mix of management skills, technical expertise, and work loads. In this way, functional plots can be used to design a project team organization and, when appropriate to produce a project manual focusing on job descriptions, work relationships and areas of functional responsibility. The paragraphs to follow will illustrate, via several examples, the increasing focus in a professional or management area as project technical complexity and volume changes and the emergence of professional project management areas. The examples will be based on the functional plot technique and drawn from the practical discussions in this book. HOWever, as presented here the plots are simplified versions of those developed in Chapters 6 through 9. Several illustrative examples are presented as a means of indicating how the technique can be applied to any management area or professional position. The first application of the functional plot is in terms of the growth development of a professional position and its related management area. Three illustrations are provided, corresponding to the project manager/ project management area (Figure 16.1), the cost engineer/cost control area (Figure 16.2), and the scheduling engineer/scheduling area (Figure 16.3). Each illustration is referenced against the changing project environment as applied to the PTC, TPM, Field Based Project Management, and Total Field Autonomy management areas. The second application of the functional plot technique illustrates the changing location of function performance in relation to the head office and field locations. In this example the head office management areas shrink while the field management areas grow in management significance and focus as the transition is made between the PTC approach and the Total Field Autonomy approach. Figure 16.4 shows the growth in importance of the field project management environment.

IEXECUTIVEJ PROJECT MANAGER

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Figure 16.1 Professional growth of project management area from broad focus to specialized focus. (a) PTC approach. ( b ) TPM approach. ( c ) Field Based Project Management. ( d ) Total Field Autonomy.

Figure 16.2 Professional growth of the cost control area and cost engineer position. (a) Typical cost control functions. ( b ) PTC approach. ( c ) TPM approach. ( d ) Field Based Project Management. (e) Total Field Autonomy.

236

An Overview

Figure 16.3 Professional growth of scheduling area and scheduling engineer position. (a) Typical scheduling and control functions. ( h ) PTC approach. (c) TPM approach. (dl Field Based Project Management. ( e ) Total Field Autonomy.

The final application of the functional plot technique is related to the span of control of the individual. As exemplified in Figure 16.5, the span of control of those individuals performing functions at the small firm level indicates that one individual does many things, whereas at the Total Field Autonomy level, many individuals are doing fewer things. In summary, the changing management roles on a construction project can be viewed in terms of the focus of the individuals involved in function performance. By analyzing a professional management area in terms of the functional plot technique the types of personnel and the required expertise can be established as well as an individual's span of control, work

Effective Project Team Management S

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Figure 16.4 Changing head office to field management function execution. (a) PTC approach. (b) TPM approach. (c) Field Based Project Management. (4 Total Field Autonomy.

16.2 EFFECTIVE PROJECT TEAM MANAGEMENT

load, tasks and duties, and work relationships with other project personnel. The functional plot techniques can prove to be a successful management tool for viewing the dynamic nature of the project management of a construction project. A number of different management approaches to project manpower management have been presented in this book. Each leads to a unique project team organizational structure, modus operandi, and different manager/ supervisor roles. Thus each management approach produces its own management solution to the problems raised by management's concern with the separation of head office and field site and the level of management effort that needs to be applied to project management. In a very real sense, each management solution is an effective use of available management know-how and manpower. As indicated in the preceding section, the different management solutions also present an increasing interest in professional project management and the progressive concentration and distribution of management functions to newly emerging professional staff (see Figures 16.1 through 16.4).

An Overview P

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Figure 16.5 Change span of control. (a) PTC approach. (b) TPM approach. (c) Field Based Project Management. (4 Total Field Autonomy.

The specific management solutions to project team organization and management have been loosely related to that typically met in the construction environments of the small, medium-sized, and large firms, respectively. A specific construction firm, however, may operate in a mode that straddles several management approaches. This dual method of operation may well represent the best management approach to projects of varying complexity and demands on management. The different management approaches have been presented in a sequence that corresponds to a growth in the project team organizational structure. This sequence does not imply that the management approach of the large firm is better and more effective than that of the small firm. For example, although the small firm would not have the resources to tackle a project at the large firm level, it may also follow that the large firm may not be able to compete with the small firm for a small project because of its higher overhead charges. Similarly, although the small firm addresses fewer management functions and its fewer managers may be exposed to

The Portrayal of Management Processes

16.3 THE PORTRAYAL OF MANAGEMENT PROCESSES

239

function overloads, many of these functions may be peripheral in importance and can be readily divested from project to project. In contrast, at the large firm level many functions are distributed to the different professional and functional departments so that the enlarged number of management functions addressed does not lead to functional overloads on management staff. However, it is not so easy for the large firm to divest itself of specialist staff if the work load in a specific area drops significantly for a period of time. The increasing sophistication of management techniques met at the large firm level do not necessarily ensure higher levels of productivity. They do, however, help to quantify the magnitude of many manpower management problems and sensitize management to causes of low field productivities and help suggest ways of improving field productivities. Thus work sampling and methods engineering techniques, coupled with work package documentation and superintendent/foremen briefings, ensure that all managers/supe~isorsare sensitive to the effective use of labor hours. Nevertheless, it may be difficult for the large firm to match the labor performance of the small firm when the entire work force is continually under the personal view and direction of a single man. The project manpower management area is one that offers considerable profit potential to management. It is a resource area that is dominantly managed in the field at the workface. Significant improvements in attainable productivities can be effected by properly trained and supported field staff. It is a management area that should he valued very highly by the project management group. The methodological approach presented in this book for the portrayal of management processes has three interacting components. These components are:

1. The definition of the scope of the management area in terms of a set of basic management functions that need to he performed. The description and dissection of the management area into a number of basic functional elements can be done in a variety of ways, and in as much detail as required. 2. The definition of the professional management area in terms of the problems to be addressed and its description in terms of a set of, possibly interacting, decision processes. 3. The description of each decision process in terms of the basic management functions to be performed, which together with their relevant policies establishes a problem oriented information system for each decision process. Finally, the individual role of the rnanager/supenisor in the management team is established in terms of the functions he performs and the decision processes in which he is involved. The methodological approach outlined above has general validity and can be applied to management areas other than project manpower management.

APPENDIX

Project Manpower Management Functions A.l

INTRODUCTION

This appendix lists and describes the forty-six project manpower management functions introduced in Chapter 2. These management functions form the basis for structuring the manpower management aspects of project and construction management. They have been referred to and used frequently throughout the book as a means of describing project management organizations, management roles, and management approaches to a variety of "decision areas." The forty-six management functions described here are not unique. They have been derived from a special selection and ordering of those general project management functions thought relevant to ongoing project management. The selected general management functions (i.e., planning, scheduling, allocating, working, monitoring, and recording) highlight a progressive movement of management concern from the planning, identification, and enumeration of required project resources to the commitment, use, and evaluation of effective use of these project resources. Each of these specifically focused general project management functions has been dissected, more or less arbitrarily, into six or eight individual management functions. The rationale for this is based upon the managemeat interests of managers and supervisors spanning the construction management hierarchy from the foreman (with a crew and workface focus on construction management) to the top-level executive manager (with a project staffing and overall project management concern focus). Although the specific hierarchical ranking of these personnel is fairly simple, the correct focus on an optimal level of detail for each, as evidenced by the identification and inclusion of a number of pertinent management functions, is not easy and is automatically subjective. More individually focused functions or fewer could have been formulated for each typical position. The forty-six functions represent, in our view, a balance between, on the one hand, the need for an adequate description of the various decision processes involved in project and construction management and the roles that individual decision makers play in these decision processes

Project Manpower Management E

A.2 THE MANAGEMENT FUNCTION

with, on the other hand, the problems associated with the codification and understanding of a larger number of specialized management functions obtained from too fine a dissection of each general project management function. The latter difficulty has been partly overcome in the text treatment by awakening in the reader the understanding that the way each management function is recognized and handled depends upon management attitudes, the professional expertise of individual managers and supervisors, and so on. Thus in some management situations specific functions are either ignored or handled in an ad hoc manner by general purpose construction personnel, whereas in other organizations they are handled explicitly and systematically by specialists in a management environment that needs action in detail on these functions. Thus each individual management function has the potential for further dissection. Management functions in the way it recognizes and performs its duties. In many cases the need for the performance of a specific management function is such that it is worthwhile to incorporate specialists within an organizational structure for their performance. In these situations the employee's job description may even contain specific references to the individual functions, and functional performance may be associated with specifically formulated management procedures, techniques, and documents. On the other hand, an individual employee may have broad authority and perform a function only in response to the perceived needs of a given situation. In these cases the manner in which he performs the function will depend upon his experience and assessment of the situation and may even be handled in an ad hoc manner. Both approaches exist in practice for each and every management function; consequently, a wide spectrum of interest and expertise exists, and the adequacy of the identification and description of a specific management function depends upon the experience and expertise of individuals. In the function definitions that follow, an attempt is made to present broad descriptions that are meaningful to practicing construction professionals at all levels in the construction industry. Collectively, they present a detailed summary of project manpower management. Each management function is presented in Section A.3 according to the following format: 1. Function area heading. 2. Function identification label. 3. Function name. 4. A descriptive scope statement of the function. 5. A job qualification statement relevant to the performance of the function. 6. A statement of the factors that may be relevant to the decision process and the performance of the function.

A.3 PROJECT MANPOWER

MANAGEMENT FUNCTIONS

The distribution and layout of the project manpower management functions described in this section are indicated on Figure A.1. The functions are described in order, beginning with the planning functions, PI, P2, . . . , P8; then the scheduling functions, S1, . . . , S8; and so on. Each function description is printed in the format indicated in Section A.2.

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

1

P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF

W1 RELEASE STAFF TO PROJECT

M1 SUMMARY PROJECT REPORTS

2

P2 ACTIVITY DEFINITION

52 ESTABLISH CONSTRUCTION SCHEDULE

A2 ALLOCATE FIELD STAFF

W2 PRE-JOB LABOR CONFERENCE

3

P3 QUANTITY TAKE-OFF

53 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

A3 DETERMINE W3 PROJECT AND WORKFORCE TRADE MANMANAGEMENT POWER PROFILES

M2 R2 CURRENT GENERATE PROJECT STATUS LABOR MANAGEMENT DATA M3 R3 PROJECT PROJECT COST FORECAST ACCOUNTING

4

P4 ESTIMATE LABOR CONTENT

54 DEVELOP WORK PACKAGE DETAILED LOGIC

A4 DETERMINE NUMBER OF FIELD CREWS

5 PS DEFINE WORK PACKAGE 6

P6 DETAILED FIELD QUANTITY TAKE-OFF

7 P7 ESTABLISH CREW REQUIREMENTS 8

P8 PLAN WORKFACE LAYOUT

MONITOR M

RECORD R R1 HISTORICAL DATA BASE

W4 ENFORCE M4 JURISDICTIONAL ACTIVITY AND SKILL ANALYSIS LEVEL WORK ASSIGNMENTS

R4 UPDATE AND REVISE WORK PACKAGE SCOPE

SS A5 DEFINE CURRENT ADJUST CREWS PROJECT STATUS

W5 ESTABLISH FIELD CREWS

M5 LABOR ANALYSIS

R5 LABOR PRODUCTIVITY

S6 REVISE CONSTRUCTION SCHEDULE

W6 SOLVE HUMAN RELATIONS PROBLEMS

M6 WORK PROGRESS

R6 QUANTITIES IN PLACE

S7 SCHEDULE PROJECT CREWS

W7 INITIATE INDIVIDUAL WORK TASKS

M7 RESOURCE USE

R7 LABOR HOURS

S8 SCHEDULE CREW MEMBER WORK SEQUENCES

W8 EXECUTE WORK

M8 FIELD INSPECTION

R8 FIELD AUTHORITY DOCKETS

A6 ASSIGN INDIVIDUAL WORK TASKS

Figure A.1 Ideal project manpower management functions.

Planning Functions

Planning Functions

P1

CONSTRUCTION RECONNAISSANCE The assessment of project site conditions and local factors that may impact the project and which must be considered during project planning and management. Requires knowledge of project scope and specifications, construction methods, labor organizations and trade classifications, subcontractor availability,* and site inspection with checkout list for factors and facilities influencing site accessibility, mobilization, layout, and productivity. Considers availability of labor, location of union locals, union agreements and expiration dates, Local measures of productivity, restrictive work practices, local trade skill levels, attitudes to importation of labor, training mechanisms, subcontractor availability,' and impact of site conditions on construction methods and working conditions.

ACTIVITY DEFINITION

P2

Activity definition rationalizes project breakdown as a means in some cases of developing the project scope (designxonstruct), and in all cases of identifying project scope and complexity and as a basis for project management control. Requires a detailed knowledge of the project scope, including preparatory work, proposed construction methods, and cost control requirements, as well as an understanding of the level of breakdown detail required to match project team expertise.

* Considers activities as recognizable portions of the finished product or work scope, correlation of activity description with estimate breakdown, schedule requirements, and cost control codes; implied crews and whether activity is worked via force account, direct hired labor, or by subcontract (if prime contractor).

P3

QUANTITY TAKE-OFF Quantity take-off systematically quantifies the material content (permanent, temporary, and consumable) of a project or component activity. Requires an intimate knowledge of construction practice, site conditions, material properties and availability of manufactured items, a flair for systematic thinking and computation and the ability to work from architectural sketches and engineering and detailed drawings, and an awareness of implied labor content.

* This applies to prime

contractors who use subcontractors for specialized work.

Appendix

Considers site conditions, construction methods, and the sequence in which the activity will he built; enumerates the material content and defines units of measure for each material required. P4 ESTIMATE LABOR CONTENT

Rationalizes the labor content for each project activity. Requires an intimate knowledge of crew sizes and compositions for each proposed construction method and intended level of equipment use, as well as an extensive knowledge of labor productivities, site conditions, and historical labor data base. Considers the impact of site conditions on labor productivity and the magnitude of activity work content in estimating activity duration and labor content. Extends direct labor content to include the labor burden as well as considering the labor content involved in the field management of labor and in engineering and other general ofice functions.

P5 DEFINE WORK PACKAGE In some cases develops the project scope (design-construct), and in all cases documents the scope of work, job requirements, and construction method details for specific work done. Requires an extensive knowledge of the cost impact and effectiveness of construction methods and trade practices and equipment and material handling processes. Considers activities as recognizable portions of the finished product or work scope, current field conditions, the skill and level of understanding of field construction managers and supervisors, and develops best construction method and sequence of activity that minimizes cost, effort, and duration of work activity. P6

DETAILED FIELD QUANTITY TAKE-OFF Prepares work and material quantity details for specific work packages as basis for briefing of those field personnel to be involved in the work. Requires constant awareness of field conditions in relation to the accuracy and detail of engineering and working drawings, and awareness of implied labor content. Considers initial estimates, contract documents, current field status, performs detailed quantity take-off correlated with field measurements and work package definition, and prepares detailed list of work tasks.

Scheduling F~metlons

P7 ESTABLISH CREW REQUIREMENTS Matches proposed crew size and trade skill mix with job requirements. Requires knowledge of trades, scope of work, field conditions, schedules, estimates, and acceptable ranges of crew sizes and mixes in relation to anticipated and required production. Considers magnitude of work content, production rate, scheduled durations, available labor and skill levels, and impact of site conditions on workface accessibility, material supply routes, and extent to which equipment can be made available. P8

PLAN WORKFACE LAYOUT Locates men, equipment, tool boxes, material dumps, and supply routes to workface to best advantage. Requires intimate knowledge of workface area, working conditions, equipment availability, and job requirements. Considers workface maneuvers over l i e of work activity and the location and interaction of the pacing and support trades. Minimizes work effort by elimination of needless walking and secondary movement of materials.

Scheduling Functions

S1 CONSTRUCTION SEQUENCE The identification of desirable sequences of major project work packages and the definition of the basic technological sequences of engineering, procurement, and field effort for each project activity. Requires knowledge of project scope, activity breakdown, and estimate details on work content and material, labor and equipment resources, subcontract items, and the impact on project and company resources of different sequences of major project efforts. Considers priority of facilities to be constructed in relation to contract requirements and decisions on availability of resources, drawings, and priorities of work effort, impact of construction methods on construction sequence logic; focuses on magnitude of effort required for integration of material deliveries with labor and equipment use to support proposed construction sequence and the impact of subcontractors (if prime contractor). S2

ESTABLISH CONSTRUCTION SCHEDULE The location in time of planned project activity and its correlation with the availability of resources, activity work content, planned rate of progress, and project priorities.

Appendix

Requires intimate knowledge of planned construction sequences, activity work content, subcontract activities, realistic progress targets, and proposed construction methods and work durations. Considers the milestone dates for completion of key facilities; integrates construction logic and activity durations within the milestone time periods; correlates activity durations with work content, progress targets, size of proposed work force, and anticipated labor productivities based upon defined workweek and shift policies and subcontract activities; and establishes work sequences for float activities.

S3 DETERMINE PROJECT AND TRADE MAN-HOUR PROFILES The continuous assessment of best suited field work size and trade composition to meet planned level of field work. Requires hnowledge of construction scbedule and work content of project activities, and whether work is to be performed by union or nonunion labor, subcontractor (if prime contractor), and corresponding work classifications by trades and skill levels. Considers planned rate of work, desirability of maintaining high level of productive effort by matching planned work loads with work force size, and the need to minimize fluctuation in work force size; considers availability of labor in hiring halls and desirability of keeping highly skilled and motivated labor.

S4

DEVELOP WORK PACKAGE DETAILED LOGIC Establishes full scope and work details of project work segment based upon field requirements and conditions as basis for the briefing and scheduling of field construction managers/supervisors and crews. Requires knowledge of project and contract requirements, basis of estimate, specific details of drawings and field conditions, construction methods, cost effectiveness of work techniques, methods improvement, and value engineering. Considers effective use of resources and elimination of needless effort, breakdown of work package into work tasks and work assignments by trade; develops detailed logic (or fragnet) for work package from work order scope and construction logic; establishes field estimate of quantities and labor hours involved, and defines material procurement, equipment location, and material flow routes to workface.

Scheduling Functions

S5 DEFINE CURRENT PROJECT STATUS T o establish current project status in terms of relevant indicators based upon past progress, definitive estimates, trends, and predictions of required "to-tomplete" effort. Requires detailed knowledge of project scope and definition, definitive estimates, work package definition details, current productivities, subcontractor and material delivery status, construction schedule and field inspection, and release of drawings. Considers accuracy of estimate, field measures of progress and productivity, choice of status indicators, milestones, and relation of planned project status to known current situation and impact of current decisions, productivities, and trends on project comple tion. S6

REVISE CONSTRUCTION SCHEDULE Establishes new plan and schedule of project activities to project completion on basis of current project status, conditions, and decisions. Requires knowledge of project scope and activities, current project status, and decisions relating to changed priorities and sequences of field effort. Considers revised estimates, work package definitions, current work rates and productivities, material procurement problems, subcontract problems (if prime contractor), and revised delivery and drawing issue dates.

S7 SCHEDULE PROJECT CREWS Schedule work for project crews. Requires knowledge of crew sizes and composition, current assipments and status, inventory of available work packages for execution, knowledge of project priorities. Considers current work status of each crew, productivities, outstanding work, anticipated work completion time, required skill levels and quality of finish requirements, and matching of crews with different types of work. S8

SCHEDULE CREW MEMBER WORK SEQUENCES Establishes desirable work sequences for crew members for a specific work package. Requires intimate knowledge of work package scope, construction methods to be used, and required quality control specifications and skill levels.

Appendix

Considers the composition and size of the crew, skill levels, work capacity and motivation of individual crew members, and relates to the work content and workface hyout of the operations.

Allocation Functions

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF The selection, allocation, and commitment of best suited staff to the project. Requires a knowledge of project scope and magnitude of effort required in project planning, engineering, and scheduling, and the qualifications and skill level required to perform the project definition phase. Considers time available; type of project team structure required for project and time frame relationship between engineering, design, planning, estimating, and scheduling groups; work load on and availability of existing staff; need to establish a well-balanced staff; the possibility of supplementing initial effort by transferring staff from other projects or by new hires; and methods of managing the project team's growth, redeployment, and effectiveness as a managing body.

A2 ALLOCATE FIELD STAFF The selection, allocation, and commitment of staff best suited to the project. Requires a knowledge of project scope and complexity and the qualifications and skill level required to perform field construction and the desired level of field project management. Considers past experience, suitability, and availability of potential key staff, and their ability to develop a well-motivated project team, and work force in relation to the special requirements peculiar to this project; defines and finalizes field management functions, nature of project team structure, desirable management control levels, and methods of managing the project team's growth, redeployment, and effectiveness as a managing body. A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES Establishes a fix on the project manpower and trade profiles to be mobilized over the life of the project. Requires a knowledge of project work requirements, labor manhour estimates, and schedule of work areas requiring special skill levels and trade classifications. Considers man-hour estimates, availability of labor, training programs, necessity for establishing work camps, and correlation of proj-

Work Functions

ect manpower size and fluctuations with the construction sequence, schedule, and anticipated work progress. A4

DETERMINE NUMBER O F FIELD CREWS Establish best suited number of field crews to cope with planned work. Requires intimate knowledge of project site, work areas, types of work and planned rate of work, project requirements for special trades or skilled crews, agreements made on crew size, and relationship with working and nonworking foremen. Considers availability of suitable foremen, desirable span of control levels for key project management staff in instructing and supervising foremen on work details, need to maintain special trade or highly skilled crews, and variation in number of crews to suit workface layout, conditions, and accessibility.

A5 ADJUST CREWS Maintenance of well-balanced, motivated and productive crews. Requires intimate knowledge of working conditions and work loads for each construction operation and field situation, and desirable crew mixes and sizes. Considers desirability of adding and deleting new members to match work loads or solve human conflict problems.

A6

ASSIGN INDIVIDUAL WORK TASKS The matching of individual crew member skill and motivation levels to requirements of the construction operation and work load. Requires intimate knowledge of men. Considers best approach to instructing, controlling, and motivating crew members in the workface environment.

Work Functions

W1

RELEASE STAFF TO PROJECT Directs office, engineering, design, and field staff to begin project work. Requires authorization from top management and release from previous assignments. Considers availability of project decision makers, relevant contract documents, office space, and desirable rate of buildup of the head office and field project teams.

Appendix

W2

PRE-JOB LABOR CONFERENCE The development and clarification of working agreements with relevant labor organizations and the establishment of lines of communication. Requires thorough knowledge of company manpower management policies and procedures, labor organizations and ability and experience in labor negotiations, and subcontract coordination (if prime contractor). Considers project labor requirements and importance of establishing agreements, strives for clarification and solution of jurisdictional dispute areas, and during negotiations knows desirability of reaching compromises, when to draw the line, and knowledge of subcontract administration.

W3

WORK FORCE MANAGEMENT The active hiring, redirection, and firing of all types of project labor to ensure that field work force size matches available and projected work load. Requires knowledge of hiring and firing procedures, and projected work loads by trade and skill areas, and ability to assess characters and personalities of workers. Considers availability of labor, size of labor pools, desirability of using in-house work force; checks prospective worker credentials and attitudes toward work.

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS The recognition of quality control requirements or skill levels and enforcement of established jurisdictional areas. Requires intimate knowledge of jurisdictional areas established by union agreements or implied by open shop job site skill classifications, the ability to handle men in tough situations, and proper briefing of key field management personnel. Considers worker attitudes, areas of potential conflict, and attempts clarification and solution of field problems with minimum conflict.

W5 ESTABLISH FIELD CREWS Involves foreman selection and allocation of labor. Requires knowledge of crew's proposed work assignments, crew size and composition, and desired manner of crew buildup to full strength. Considers suitability and willingness of individual field personnel for foreman's job, and attempts to establish crews that strengthen

Monitor Functions

work ties among crew members and minimize areas of potential personality conflicts. SOLVE HUMAN RELATIONS PROBLEMS Strives for happy, warm, well-motivated work environment among crew members. Requires perceptive understanding of work relations and ability to anticipate or tactfully handle situations involving real or imagined conflicts between men. Considers ways of defusing situations before they become problems, attempts to define and discuss the nature of a specific human relations problem and solution methods in nonthreatening ways that maintain human dignity, and in the last resort considers reassignment of individuals to other areas or terminating the individual's employment. INITIATE INDIVIDUAL WORK TASKS Briefing and direction of crew members on their work roles and contributions to the crew effort. Requires intimate knowledge of the construction operations and assignments compatible with skill levels and seniority of individual crew members, and best combinations of crew members to form work groups. Considers physical nature of required work in relation to crew member physique and attitude to work, attempts strengthening of work bonds between individual crew members, and implicit recognition of leadership roles of individual men. EXECUTE WORK High-quality productive work. Requires motivated and dedicated labor. Considers effect on worker of encouragement, praise, and recognition of worker's contribution. Monitor Functions

SUMMARY PROJECT REPORTS The assessment of project performance for management review and management authorization of changes in project policies, direction, estimates, schedules, and construction methods, based on current project status, performance, and predictions to complete. Requires knowledge of current project status, physical progress, variations from the latest estimate and planned schedule, predictions of final costs and man-hours in relation to each other, and the latest project scope and details.

Appendix

Considers costs to date; percent complete; projected cost to complete; man-hours to date; projected total man-hours to complete; variances between budget estimates and forecasts; overall labor an6 craft productivities; engineering, design, and construction status; work volume remaining to complete; trends and change orders; impact of current authorized changes and decisions on all aspects of the project; and client response to changes. CURRENT PROJECT STATUS Establishes indicators of current project status compatible with work package and scheduling techniques. Requires knowledge of scheduling status, percent complete, revised construction schedules, and the latest work package scope and details in relation to predicted indicators of status. Considers predicted progress versus actual progress, predicted manhour expenditure and manpower forecasts against actual man-hour expenditures and manning, actual and scheduled activity start and finish dates, revised schedules and estimates, and the impact of current decisions, productivities, change orders, and trends on project completion. PROJECT FORECAST The assessment of changes in scope and/or trends that cause a deviation from the budget estimate and/or plan for accomplishing the work. Requires detailed knowledge of the current project scope and definition; budget estimate; project plan and schedule; current progress and performance-to-date in relation to budgeted quantities, manhours, labor costs, and productivity; and a new prediction of total quantities, man-hours, and labor costs at project completion based on current progress, performance to date, and the remaining work to be completed. Considers the nature and cause of changes in scope and trends, the impact on project completion and costs, the impact on field manhours and manpower, and the demand on engineering, design, and field management effort. ACTIVITY ANALYSIS The controlled analysis of a construction method in relation to crew size, crew production, crew location to the workface, material and equipment location, and material flow routes. Requires knowledge of work package scope and details, an understanding of sophisticated field management techniques, intimate

Monitor Functions

definition of construction operations for each work task, and knowledge of method improvement reporting. Considers the construction sequence of each detailed work task, the effective use of all resources, crew design, the needless waste of time, delays, specific location of men in relation to material supply routes, equipment location, congestion of the work space, and the production output of the crew.

LABOR ANALYSIS Assessment of labor productivity by craft, work package, crew, and/or cost code. Requires a knowledge of project cost codes, estimated labor content correlated against actual experience, a predetermined measure and understanding of productivity, physical progress, and work package content. Considers the correlation between estimated labor data including quantities, labor unit costs, unit man-hours, and labor hours, and actual quantities, labor unit costs, unit man-hours, and labor manhours in relation to a target performance indicator; the impact of job conditions, crew design, performance and motivation, and the effectiveness of field management. WORK PROGRESS Evaluates the percent progress for each work package. Requires an intimate knowledge of project cost codes and project scope documents, including drawings and specifications, work package structure, construction materials, and work in progress. Considers either the actual quantities placed by measuring the physical output via direct quantity take-off of the material placed, logging quantities, counting quantities, or visually assessing quantities placed or by developing a system of labor units of work that represent the complexity of an activity and weights the activity according to its difficulty. RESOURCE USE The assessment of the utilization of field labor. Requires a knowledge of the work in progress, project cost codes, employees.assigned to each work task, and the work performed by each employee. Considers the types of work performed, the actual hoqrs expended to perform the work, the number of employees assigned to the work, craft type, and classification.

Appendix

FIELD INSPECTION Visual assessment of crew performance, construction methods, quality of work, daily activity, progress, material movement and supply, and project morale. Requires an intimate knowledge of working conditions and work loads for each construction operation and field situation, desirable crew mixes and sizes, anticipated production rates and progress, union work rules and restrictive work practices, and the ability to detect human conflict problems. Considers actual crew performance and progress in relation to planned crew performance and progress, optimizing crew design, problems in material movement, needless waste of effort, congestion at the workface, crew adjustments, and changes in construction methods. Record Functions

HISTORICAL DATA BASE Normalizes a broad range of project data to a standard reference base for use in conjunction with estimating, scheduling, crew planning, and project control and management. Requires knowledge of company cost codes, estimating and scheduling techniques, reporting systems, crew planning methodologies, and the basic structure of the project scope and specifications common to company operations. Considers labor data and documents from all projects, the nature of each project, its location, unique job conditions, relative labor efficiencies and productivities, crew performance indicators, size of the work force, its composition, and scheduling impact changes. GENERATE LABOR MANAGEMENT DATA Generates specific labor data that are useful at both the project level and company level. Requires knowledge of project cost codes, labor management documents, construction methods, union agreements and jurisdictional dispute decisions, characteristics of productivity, project craft profiles, and statistical methods of data analysis. Considers actual labor man-hours, unit man-hours, labor unit costs, progress curves, man-hour curves, manpower curves, project scope, job conditions, and schedule delays as each correlates to basic project performance. PROJECT COST ACCOUNTING Accumulates and records the actual costs and actual man-hours incurred over the life of a project.

Record Punctlons

Requires a detailed knowledge of labor cost accounting methods, including time card applications, project cost code systems, craft wage structures, benefits, -standard deductions, and payroll procedures, as well as an understanding of budget/revised estimates and project team and craft makeup. Considers labor man-hours expended by craft; project team manhours expended by classification; basic wage rates, including wage differentials, overtime, burdens, and benefits; and costs to date. REVISE AND UPDATE WORK PACKAGE SCOPE Revises and updates the full scope and work details of project work segments based upon current field progress, status, crew productivities, and job conditions, and serves as a basis for the re-briefing and rescheduling of field construction managers/supervisors. and crews. Requires an intimate knowledge of the current work package scope relative to physical progress, scheduling status, man-hours expended, and man-hours to complete, latest scope changes and trends, actual field conditions, and construction methods. Considers the current work package scope versus existing conditions and status as a means of revising work task and work assignments by trade; revising detailed logic for work package; reassessing field estimates of quantities and labor hours; reevaluating effective use of resources; and redefining procurement, equipment locations, and material flow units to workface. LABOR PRODUCTIVITY Documents labor productivity by craft, work package, crew, and/or cost code. Requires a knowledge of the project cost codes, estimated labor data, actual experience, performance indicators, physical progress, crafts, crew profiles, work package contents, and the pertinent recording documents. Considers the correlation between estimated data, including quantities, labor unit costs, unit man-hours, and labor.man-hours, and actual quantities, labor unit costs, unit man-hours, and labor manhours in relation to target performance indicators; the impact of job conditions, crew performance and motivation, and effect of field management on achieved productivity. QUANTITIES IN PLACE Documents the physical quantities placed by work task and/or work package. Requires an intimate knowledge of project cost codes; project scope documents, including drawings and specifications; work package

Appendix

structure; construction materials; estimates; and pertinent recording documents. Considers the actual quantities placed through physical measurement and/or percent progress evaluation. R 7 LABOR HOURS Documents the manpower and man-hours assigned to work packages. Requires a'knowledge of the work tasks, employees assigned to each work task, the project cost codes, and the pertinent recording documents. Considers the actual man-hours expended against a work task by each employee, the number of employees assigned to the work task, and the craft type and classification (e.g., foreman, journeyman). R8

FIELD AUTHORITY DOCKETS Controls the movement and location of labor, material, and equipment. Requires an intimate knowledge of employees, their identification numbers, material warehouses and laydown areas, equipment locations, and pertinent documents. Considers the location and movement of each employee under a field manager, the type and location of material and equipment required for each work task, and the personal and company business of each employee.

Index Accounting: functions, 70-72,79,91,94,107,115116,123,133-134,149,169,173174,176,178,180,182-183,184185,186,188,190-192,195,196, 197,198,199-200,203-205 payroll, 70-72,79,91,94,107,115116,123,167,169,170,175, 178,185,192,198,203-205 personnel, 70-72,74,93,94,97,106, 107-108,124-126,131,133-134,

149 Activity categories, 32-33,97,99-100, 106,127-128,135-137,151,153, 156,161,162,166,168,170-171, 173,176,178-179,182,186, 188,190-193,195,196,199, 201,203-106 see also Cost codes; Work package Actual manhouss, 79,97,106,127-128, 134,156,167,169,174, 175,183, 184,188,195,196,199,201-

202 see also Estimate; Time cards Administrative function, 70-71,74,9091,92-93,94-95,114-120,121-

126,144,145-150 Administrative lines, 73,74,91,93,9495,116,118,119,121-125,144, 145-150 Administrative personnel, 73,74,91,93, 94-95,118,119,122,124,126, 145-150 AIE, 30 AGC, 75,96 ArchitectlEngineer (AIE), 30 Area engineer, I56 Area manager,44,145,149,150 Associated General Contractors (AGC), 75,96 see also Builders Asgociation of Chicago Inc.; Job descriptions Authority, 43,44,4546 commensurate with responsibility, 43, 46 delagation of, 43,4647 line structure and, 40,43,44-45 see also Duty; Responsibility

Bar chart schedule, 30,75,79,82,96, 99,135-136,166,168,173,175,

176,183,186,187,195-196 in manpower management, 135,137, 156-157,200-202 in manpower planning, 99-100,128, 135-136,156,166,168,173,175, 176,183,186,187,195-196 see also Critical Path Method (CPM); Manpower management; Manpower planning Basic management functions, 12,20-23, 242-256 description of, 2243,242-256 list of, 19,21,242 ordering of, 19-22,241 see also General management functions; Roject manpower management functions Bookkeeper, 65,80-81,83,84 functional plot of, 81,83,84 job description for, 83 Briefer, 39 role of, in decision processing, 39, 218 see also Decision processes Budget, 127-128, 156,166,173,183, 195,199 earned, manhours, 133,197,199202 manhours, 127-128,183-187,195 see also Work order; Work package Builders Association of Chicago, Inc., 75,77,99 see also Job desaiptions Business agent, 53 Chief estimator, 4445 Clerk, 80-81,83,84 Client, area manager, 150 project manager, 150 project team, 145,150,194, 198-199 sophistication, impact on project management approach, 8,141 Construction: defiition of, 1 environment, 6-8,10,66-69, 86-90, 111-114,141-143

moulding factors in, 7-8 large firm, 7,111-114,141-143 medium sized firm, 7,86-90 small firm, 7,6649 Construction engineer, 132 Construction management: contract, 64,142 hierarchical nature of, 15,102,131,

240 project, 64,112,142 Construction manager, 52,112,126,149 Contracts: competitive bid, 68,89 construction management, 64,142 wst plus, 89,114,141,143 fixed price, 114,142 owner negotiated, 89 Corporation, 88,112-113 administrative functions, 113-115 organizational aspects of, 88,112,113,

114-120 Cost accountant: functional plot of, 46,47,48,103,

104,108,132,155,223,228, 235 job description for, 108 role of, 107-108 see also Project team member Cost clerk, 62,105 Cost codes, 28,32,166.173,18~ 195 project, 28,33,182,195 reference, 33,166,173 see also Work package Cost control area, 49-50,176,186,188 Cost engineer: functional plot of, 47,48,132,134,

155,228,231,235,236 job description for, 134 role of, 133-134 see also Project team member Cost trending, 64,133,134,156-157,

174,177,184,188,197,200, 202 see also Trending

O M ,see Critical Path Method (CPhQ Craft foreman, 94,125 see also Foreman Craft superintendent, 123,125 see also Superintendent Crew, 81,83,84,103,104,132,155,

217,218,223,228 management functions, 208,212,

251 sizing decision process, 25-26,79,84,

85,105,128,153,157,167, 168,173,174,183,184,187, 188,196,197,201-202 Critical Path Method (CPM), 75,96,99, 128,135-136,173,176,183,

186,187,195-196 in manpower management, 200-202 in manpower planning, 128,135-136,

173,176,183,186,187,196-196

see also Manpower management; Manpower planning Daily construction reports, 76,79,97,107 Data: generation, 25,27,54,76,77,79,97,

98,107,133,134,136-137, 167,175,197 processing, 25,27,62,79,97,105,106, 107,108,134,136-137,167,175,

185,197,198 transmittal, 25,27,84,97,98,183,195 see also Decision processes; Management Information System Decision processes, 4.9-10,11,24-36.40,

206-232 basic, 206-207 description of, 26,209-213 documents in, 28-31,33-36 estimate preparation, 30-36,219 examples of, 30-36,207-213,218,

229,231 generic, 207 information flow in,27,28-31, 33-36,

218 involvement in, 39,217,218,223,228,

229,231-232 briefer, 39,218 gatherer, 25,39,218 processor, 25,218 transmitter, 25 management functions and, 9,24-26,

214,216,220,222,223,227, 228,229,231 policies and, 28-31,32-33 schematic illustration of, 28-31,33,40, 215,216,217,218,219,221, 222,223,225,226,227,228, 229,230,231 structuring of, 26,31,33 Delegation of authority, see Authority; Duty; Responsibility Departmental structure: examples of, 118,119,144 organizational principle of, 4345,117-

118,120,143 roll up, 120 vertical, 117,120 Design engineer, 1'27,149 Direct rield labor, 113

Documents,9,24-25,26,28-30,32-36 external (E-DOC), 30,31,32 internal (I-DOC), 28-30,32,64 policy (PDOC), 28,32,34-35.79 standard, 24-25 Drawings, see Documents, external @-DO0 Dual partnership, 52-53,67-68,70-72 organizational structure, 71,72 Duty, 9,37,38,43,4849,65,76,77,83,

96,97,98,99,106,107,108,131, 214,241

Index Earned manhours, 201-202, E-DOC see External documents (E-DOC) Employee duties, 75,76,77,96,97,98, 99 see also Job descriptions;Project team members Engineer: area, 147, 150, 156 cost, see Cost engineer design, 127,149 field, see Field engineer functional plot of, 46,47,48,104, 107, 132,134,136,137,155,157,228, 229,231,235,236 job description for, 98-99, 107, 133134,135-137,157-158 methods, see Methods engineer office, 123, 150 project, 125,147, 149 scheduling, see Scheduling engineer unit, 150 Equipment Superintendent, job description for, 98 see also Superintendent Estimate, budgct, 35,64,79,202,252 manhours, 146,148,183,186,195, 198,199 preparation, 30-36 recapitulation sheet, see Documents, policy (P-DOC) standard, 202 summary document, see Documents, policy (P-DOC) Estimator: functional plot of, 44,45,74,81,83, 84,103,104,132,155,217, 223,228 job description for, 76-77, 83 role of, 32-35, 80-82 see also Project Team Members Executive, 63,92,105,108-109,154 Expeditor, 74,94,96 External document (E-DOC), 30,31,32 example of, 30 representation of, 28-30.31, 33 Field engineer: functional plot of, 104, 107,132,228, 229,235,236 job description for, 98-99, 107 role of, 107 see also Project Team Member Field superintendent functional plot of, 42,74,81,83,84, 103,104,132,155,217,218, 223, 228,229,231,235,236 job description for, 76, 83 role of, 84-85 see also Job Description; Superintendent Flow chart: for description of decision processes, 31,33

symbols for, 28-30 documents, 28-29 function, 28,29 information flow, 28,29 policy, 28-30 policy document, 28-30 Foreman, 65,73,80,85,88,106,127, 150,154,168,213,214,220, 224,225 craft, 94,125 functional plot for,41,81,83,84, 103, 104,132,155,217,218,223, 228,229,231,235,236 general, 88,125 job description for, 83 role of, 25,85 Functional plots, 37-50,74, 81,83,84, 93,103,104,107,108,132,134 136,137,138,155,157,217, 218,223,228,229,231,235, 236 see also Job descriptions, functional plots for Function overload, 48,65,71,92,239 Functions, 8-10 basic set of, 12,20-23,242-256 business, 52,69 description of, 22-23,24-26 dissection of, 14-20 duty to perform, 9,38,75,76,77,96, 97,98,99 field management, 52 general, 13-14,69,75,76,96,97,98 generic, 20 performance of, 12,22-23,241, 242-256 responsibility for performance of, 9 specific, 20 staff, 13 symbols for representation of, 28-29 see also General management functions Gatherers, role of in decision processes, 10 see also Decision processes General foreman, 88,125 see also Foreman General management functions, 13-14 allocation of staff, 14 bases of: head office and field location, 1415 impersonal management of labor, 15-20 personal management of labor, 15-20 resource management, 15 stage in management process, 15 two-dimensional framework, 15-21 monitoring, 14 organizing, 13 planning, 13-14 recording, 14

Index relationship between, 13-14 scheduling, 14 staffing, 13 work, 14 General superintendent, 55,62,94,123, 125,131,150,156,180,229 functional plot for, 132,228, 229 job description for, 94, 100 role of, 94, 106 see also Superintendent Generic decision processes, 207-208 description of, 209-213 example of, 30-36,207-213,218,229, 231 network representation of, 29,31,33, 219 plotting of, 28-31,33,40,215,216, 217,218,219,221,222,223, 225,226,227,228,229,230, 231 structure of, 26.31, 33 Graphical representation: of decision networks, 28-30,31,33 of management roles, 37-50 Head office: component, 52 physical location of, 52-59 and regional offices, 52,54,90, 113 Hierarchical nature of construction management, 15,102,131, 240 Hiring hall, 53 Historical data base, 34,64,84,107, 183,186,195,199,208,213, 215,216,217,219,221,222, 223,227,228,242,254 large rum, 64,183,186,195,199 medium sized firm, 117 nature of basic unit price for, 84,133 small rum, 34, 166,168 Human relations, 2 , 3 4 management area, 2,3 and project manpower management, 4 I-DOC, see Internal document (I-DOC) Impersonal management of labor, 3,4,15-19 functions for, 15-19 and project manpower management, 4 see also General management functions Industrial relations, 3,4 see also Labor relations manager; Project team member Information system, 9,25,28-31,33 36.59 see also Decision processes; Management information Systems

Internal document (I-DOC), 28-30, 32,64 example of, 30 representation of, 29, 31,33 Investing, 69,71,72,74,91,93,116, 144 lob descriptions, 22,37,74-77,80-85, 102-109,130-138,154-158, 241 Builders Association of Chicago Inc., for, 75-77, 96-99 equipment superintendent, 98 estimators, 76-77 expeditor, 96 field engineer, 98-99 field superintendent, 76 mechanical superintendent, 98 project manager, 75 scheduling engineer, 98-99 timekeeper, 97 functional plots for, 37-50 construction engineer, 132. 228 cost accountant, 46,47,48,103, 104, 108,132,155,223,228, 235 cost clerk, 104 cost engineer,47,48,132,134,155, 228,231,235,236 crew, 81,83,84,103,104,132, 155,217,218,223,228 estimator, 44,45,74,81,83, 84, 103,104,132,155,217,223, 228 executive project manager, 103,104, 108,223,235 field engineer, 104,107,132,228, 229,235,236 foreman,41,81,83,84,103,104, 132,155,217,218,223,228, 229,231,235,236 general superintendent, 132,228, 229 labor relations expe~ 132,138, 155,228 methods engineer, 155,157,231 office support personnel, 74.81, 83,84,93,217,235 project manager, 46,47,48,74,81, 83,84.93,103,104,132, 155,217,223,228,235,236 quantity surveyor, 45,104,132, 155,228 scheduling engineer, 46,132,136137,155,228,229,231,235,236 superintendent, 42,74,81,83,84, 103,104,132,155,217,218, 223,228,229,231,235,236 timekeeper, 104,106,132,155, 228,235 traveling project manager (TF'M), 93, 103,104

see also Project team member Job Superintendent, 40,42,56,62,65, 73,75,80,82,84,85,96,105, 106,130,154,156,168,169, 213,214,220,224,229 functional plot for, 42,74,81,83,84, 103,104,132,155,217,218, 223,228,229,231,235,236 job description for, 76, 83 role of, 84-85 Jurisdictional issues: crew design and, 85 functions, 21,242,250 role of business agent in, 135 role of industrial relations agent in, 135,138,158 Labor dollars: estimate of, 31, 32,34,35,36 extended, 34 unit costs for, 34-35,100,106,166, 168,169,173 Labor management, 3,16-19 see also Functions; Personal manage ment of labor; Project manpower management Labor performance target, 156,201,202 Labor productivity analyses, 78,100, 197,198,201,202 Labor relations, 132,154,158 functional plot for, 13,138,155, 228 job description for, 138 role of, 135,158 Large firm, 6,lO-11,62,64,110-138, 140-141, 143-144 see also Project manpower management Lead designer, 149 Lead engineer, 149 Line and staff functions, 40,43,4448 defmtion of, 43 examples of, 4448 Line organization, 4445 Lines of communication, 63,80,105, 120,131 dual, 46,60,105 external, 46,60,92,94 internal, 46,60 Local labor market, 32,79 Management approaches, 7-8,lO-11 field based project management, 5962,110-138,181-182,223229 project team components (PTO, 52-54,68-85,165,213-218 total field autonomy, 6264, 139158,193-194,229-232 traveling project manager (TPM), 5459,86-109,172,218-223 Management attitudes, 11,12, 167-169, 175-180,185-189, 198-202

policies and, 165,172,181-182,193194 see also Management approaches Management-byexception,53 Management environment, 10-11,52,6669,86-90,111-114,141-143 factors in,46,7-8,6649,86-90,111114,141-143 moulding pressures, 7-8 Management functions, 8-10,1344 basic elements of, 25,27 basic set of, 20-22,240-256 dissection of, 14-20 duty to be performed, 9,24-26,37,43, 241 generic, 20 performance: in field based project management auoroach. 127-130 in project team component approach, 77-80 in total field autonomy approach, 151-154 in traveling project manager approach, 99-102 Management Information System, 9, 142-143,169,180,188189 documents used in, 28-29 information flows and, 28,30 problem focussed, 30-36 schematic representation of, 28-30, 31,33 Management roles, 8-10,37-50,80-85, 107-109,130-138,154-158 portrayal of: in decision processes, 40,217,218, 223,228,229,231 by functional plots, 37-50,72,74,

-

81,83,84,93,103,104,132,

155,217,218,223,228,229, 231,235,236 Management systems; 142,143 see also Management Information System Manhour estimate, 146,148,183,186, 195,198,199 see also Work Package Manpower management, 1-5 bar chart scheduling and, 135,137, 156-157,200-202 components of, 4,8-11 CPM, 200-202 hierarchical nature of, 2-3.15 human relations and, 2 impersonal management of labor, 2,3,15-19 industrial relations, 2 , 3 methodological approach to, 810 personal management of labor, 2-3,15-19

262 scope of, 3 4 see also Project manpower management Manpower planning: functions, 21, 242, 243245 large firm, 127-128, 151, 153 long range, 61 medium sized firm, 100 short range, 56 small firm, 79 Mechanical superintendent, 75,98, 150 job description for, 98 Medium sized firm%5 6 , 10-11,59, 86-109, 172-180, 212, 238 Methods engineer: functional plot of, 155, 157,231 job description for, 157 role of, 157-158 see also Project team member Micro schedules, 62 Milestones, 143,213,215,225 Office engineer, 150 Operating policies, 160 see also Policies Organizational charts, examples of: dual partnership, 71, 72,74 elements of,43,44,45,46,47, 48 family, 72 large fum, 116,118,119,122,123, 124,126,144,146,147,148, 149 medium sized firm, 91,93,95 small fum, 71,72,73,74 Organizational principles: control area philosophy, 146-149, 151 department, 4344,117,120,143144 function overload, 48,65,71,92, 239 limiting management experience, 115 line, 43,4445 project team development, 120,145 roll up, 120,128 span of control, 154,236,238 staff, 47 vertical breakdown, 117 Organizationalstructure, 10,37,69-73, 73-77,90-94,94-99,114-120, 121-127,143-144,145-151 dynamic, 10 line, 43,80 project team, 10-11,73-77,94-99, 121-127, 145-151 traditional, 37,105 weakness of, 47

Index Partnership, 52-53,68,88 Payroll, 54,70,91,107,165 data, 54,66,94 function, 71,72,73,74,83,93,97, 106,108,121,123,124,167, 170,175,178 P-DOC, see Policy documents (P-DOC) Performance indicators, 201 Personal management of labor, 2-3,4, 15-19 management functions for, 15-19 manpower management, 4 Plans, see Documents, external (E-DOC) Policies, 9-11,24,26,28,30,159160 examples of, 31,32,33,34,35 at large firm level, 160-161,182185,189-192 at medium sized fm level, 173-175, 178-180 at small fum level, 31,32, 33, 34, 35,162,166-167,169-171 in total field autonomy management approach, 194-198,202-205 formation of, 159-160 ad hoc, 167 formalized, 159-160 verbal, 165 and management attitude, 159,165, 172,181-182,193-194 operating, 159-160 plots of, 160-163,170-171, 178-179, 190-192,203-20s representation of, 163-164 Policy document (P-DOC), 28,32,3435 example of, 28 representation of, 28-29,31, 33 Productivity, 167,169,173,174,175, 177,179,184,185,186,188, 190,191,192,194,197,198, 201-202,203,204,205 definition of, 174,184,188,197, 201-202 quantification of, 174, 201-202 Project engineer, 94,123,149 Project environment, 7-8 historical trends, 8 moulding pressures in, 7-8 Project life phases, 51 Project Lie, 4647 Project management: components, 52-54,68-85,165,213218 field based, 5962, 110-138,181-182, 223-229 primary goals, 5-7 total field autonomy, 6264,139-158, 193-194,229-232 traveling project manager, 54-59,88109,172,218-223 Project manager, 55,62,73,75,80, 82,94,96,102,105,106,

Index

125,126,130,131,150,154, 169,221-222,234-235 client, 150 functional plot for, 46,47,48,74,81, 83,84,93,103,104,132,155, 217,223,228,235,236 job description for, 75,83 role of, 82-84 Project manpower management, 3-5,841 management approaches to, 10-11,5264,68-85,86-109,110-138,139158,165,172,181-182,193-194, 213-232 project team structuresand, 10-11,7377,94-99,121-127,145-151 scnpe of, 3-5 see also Management approaches Project manpower management functions,

240-256 basic set of, 20-22,240-256 description of, 22-23 dissection rationale for, 14-20 representation of, 28-29 Projects: design and construct, 61,63,112-113,

114,119-120 engineering design, 61,112 construct, 112 Project swpe document, see Documents, internal (I-DOC) Project team member: area engineer, 156 area manager, 44,145,149,150 bookkeeper, 65 chief estimator, 4445 clerk, 84 construction engineer, 131 construction manager,52,112,126,

149 cost accountant,94,105,107,131,

154 cost clerk, 62,105 cost engineer,62,125,131,154,156 craft foreman, 94,125 craft superintendent, 123,125 design engineer, 127,149 equipment superintendent, 98 estimator. 31.32.34.35.4445.73. ~ --

executive, 63,92,105,154 expediter, 75,94,96

field engineer, 62,94,96,98-99,105,

107,123,131,150 field superintendent, 76 foreman, 65,73,80,85,88,106,127,

150,154,168,213,214,220, 224,229 general foreman, 88,125 general superintendent, 55,62,94,123 125,131,150,156,229 industrial relations expert, 135,138, 158

job superintendent, 56,62,65,73,75,

80,82,84,85,96,105,106,130, 154,156,168,169,213,214,220, 224,229 labor relations manager, 132,154,158 lead designer, 149 lead engineer, 149 mechanical superintendent, 75,98, 150 methods engineer, 150,154,156,157, 232 office engineer, 150 project engineer, 94,123,149 project manager, 55,62,73,75,80,82, 94,96,102,105,106,125,126, 130,132,150,154,169,221-222, 234-235 quantity surveyor, 44-45,94,105,154 scheduling engineer, 62-75,98-99,125, 130,131,154,156,229 section chief, 118 supervisor, 118 timekeeper, 62,75,94,96,97,105, 106,154 traveling project manager (TPM), 55, 222 unit engineer, 150 Project team structure, 52-64 components of, 52-54,6545 examples of, 52-53 initial phase of development of, 145 organizational principles for, 120, 145 Bze of, 236-237 staffing of, 73-77,94-99,121-126, 145-146 see also Management approaches; Project manpower management Quantity, method of, take off, 34 in place, 54 sheet, 25,33,35,79 Quantity surveyor, 4445,94,105,154 functional plot for,45,104,132,155,

228 Regional office52,54,90,113,

197 Reports, 46,54,64,79,150 cost, 54,79 payroll, 79 progress, 54,79,197 quantities in place, 41,42,54,79 summary level,46,64,150,197 see also Documents Resource: machinery, 5 management know-how, 5 manpower, 5-6 materials, 5 6 money, 5 4 Responsibility, 9,38,39,41,43,46,48-

49,65,92,96,120,154

Lndex commensurate with authority, 43 duties, 9,43,4849 see also Authority; Duty Roles: management, 9-10,37-50,8045,102109,130-138,154-158 portrayal of, 3840,72,74,81,83,84, 93,103,104,132,155,217,218, 223,228,229,231,235,236 see also Job descriptions Schedule, 30,54,79,176, 186 bar chart, 30,75,79,82,96,99,135136, 166,168,173,175,176, 183,186,187,195-196 CPM, 75,96,99,128,135-136, 173,176,183,186,187, 195-196 Scheduling deviation, 200 Scheduling engineer. 62,75,98-99,125, 130,131,154,156,229 functional plot for,46, 132, 136,137, 155,228,229,231,235,236 job description for, 98-99,136-137 role of, 107,135-137 Section chief, 118 Small f i , 5 6 , 1 0 - 1 1 , 3 0 , 3 2 , 4 0 , 5 4 , 66-73,165-171,213,217,236,

238 Sole proprietor, 68,70,80,88 Speciality contractor, 68,88,113 Specification, see Documents, external (E-DOC) Staff: assistance, 47 functional plot of, 74,81,83,84, 93,217,235 relationship, 47 Standard manhours, for estimating, 202 Stockholder, 88 Stuck issue, 88,112 Subcontractor, 88,99,113,142 Subsidiaries, 113 Summary level reports, see Documents; Reports Superintendent, 115 see also Craft Superintendent; Field Superintendent; General Superintendent; Job Superintendent; Project team member

Supervisor, 118 Symbols, use of, 28-30,31, 33 see also Flow chart symbols Targets, labor performance, 156,253, 255 T i e cards, 79 Timekeeper, 62,75,94,96,97,105,106. 154 functional plot for, 104,106,132,155, 228,235 job description for, 97,106 role of, 106 Total field autonomy, management approach, 6264,139-158,193194,229-232 Totally integrated project team, 6264 Traveling Project Manager (TPM), 55,222 functional plot for, 93, 103,104 job description for, 93,103,104 role of, 105-106 Trending, 200 Union agreement, 30 Union costs, 33-34,186 cost estimation, 100 historical nature of, 34 Union hiring hall, 53 Unit engineer, 150 Variation: budget, 134,252 schedule, 200 Visual inspection, 26,27,166,168, 173 Work, order, 196, 201 teams, 43-44 Work face layout, 25-27 management function, 26.27 Work force rmidelies. 185-186 Work package, 64,128,153,156157 approach, 77-79,153,156,157 method of estimating, 64,79,153, 157 scheduling and, 128,153,156 Zones, project, 146-147,149, 150, 151