Tailgate Talk | Brad Humphrey
Shortening "Time Wastes" on the Job WITH ALL OF our “re-start” reasons, some due to normal seasonal start-ups and some imposed on us thanks to the COVID-19, it’s about that time of year when a few of the past time wastes reintroduce themselves into our crews’ work efforts. Lean Construction calls one of their seven wastes, “Waiting,” as one of the biggest costs experienced by contractors. When I speak of “waiting,” I’m literally suggesting things that can cause our workers to wait, including: • Equipment breakdown • Employees late to work • Gassing up vehicles/putting water in roller • Late delivery of materials • Job-site not accessible or prepared • Owner didn’t unlock premises • Emptied out current inventory of supplies • Employee forgot important tool or equipment • No directions to jobsite • Crew waiting for supervisor to return from lunch While the reasons can vary from day to day, the costs incurred remain painfully consistent. You can never replace lost time. “Downtime” in construction costs you, the contractor, money and is not recoverable from the customer. What are the costs of waiting workers? Well, let’s cost-out one situation. Consider a paving contractor who suddenly finds
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his five-person crew without asphalt to lay. A mix-up in the directions given to the driver left the crew is standing around for one hour. Let’s calculate what the cost might be for five workers standing around for one hour. 5 Workers × 1 Hour Waiting = 5 Man-Hours Waiting Average Hourly Rate = $30.00 Per Hour (Fully Burdened Rate) 5 Hours × $30 Per Hour = $150 Our cost for having labor waiting on materials is $150. Are there other costs? That depends on the step in the process. For example, if the crew needed this missing material to finish out a section, the hour wait might result in a visible longitudinal joint. You might think that one mistake costing $150 is no big deal. And you’re right, if this only happened once…in the year. But, we know that’s not realistic. Unfortunately, the reasons workers might be forced to wait can shift for one reason or another, leaving employees waiting around for five minutes here and 15 minutes there. Another wasteful time for workers to experience is due to lack of planning or organizing. Let’s imagine that 10 employees spend 60 minutes a day looking for “stuff.” The “stuff” could be brooms, brushes, tips, directions, cell numbers, rake, spade, safety tape, time cards etc. Let’s
calculate the average cost of waste for one year of those 10 employees, still earning $30 an hour. 10 Employees × 60 Minutes/Day × 300 Work Days/ Year = 180,000 Minutes/Year 180,000 Minutes/Year ÷ 60 Minutes/Hour = 3,000 Total Man-Hours/Year 3,000 Man-Hours/Year × $30/Hour = $90,000/Year That’s $90,000 in less profits for the year. While this amount may not be terribly great for some contractors, it is still a cost that is paid due to poor organization and planning. (The 60 minutes that each worker spends looking for “stuff” is conservative. Some estimates are closer to 90 minutes per day. Office workers can spend up to two hours per day looking for… lost files, information on the internet, the boss etc.) We can only imagine what all of the waiting around is robbing from our organization. Contractors must do a better job of not only providing clearer direction and instruction but also involving their workers in learning how to determine direction for themselves. These techniques will help: • Develop a Weekly “Look Ahead” Schedule. This tool should identify what jobs will be performed, what resources will be needed, what day the work will be performed, and who will be completing the work.
• Conduct Daily “Huddles.” Begin each day with a 5-15 minute informational meeting. This also acts as a verbal daily planner. • Job Cost & Track Performance. This will help you to improve performance and keep more workers educated about what they are doing, what they will need to do it, and how they will go about doing it. • Create Job Tools & Materials List. The document should itemize every tool and material needed to complete the intended job. • Make Preventive Maintenance a Company Priority. Put all your equipment and vehicles on a preventive maintenance schedule and watch how much more work gets completed. • “Stage” Your Job-Site at the End of Each Day. Getting the job or work site ready for the next day’s performance will save you time the following morning and warn you if you are missing anything. Brad Humphrey, Pavecon’s Vice President of Human Resources & Employee Development, is known throughout the industry as The Contractor’s Best Friend. In addition to reading Brad’s articles and subscribing to his e-newsletter, be sure to listen to The Contractor’s Best Friend podcasts, sponsored by Caterpillar and AC Business Media at www. forconstructionpros.com.
June/July 2020 • Pavement Maintenance & Reconstruction • www.ForConstructionPros.com/Pavement
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