7 general recommendations to boost the construction sector productivity - 2nd part

7 general recommendations to boost the construction sector productivity - 2nd part

In the previous article we have highlighted first 4 main points why the construction industry urgently needs productivity improvements. In this article, we will present 3 more problems and our recommendations for improvements.

5. Improve on-site execution.

Four key approaches are known in the industry but have not yet been widely accepted.

  1. Introducing a rigorous planning process— the Last Planner® System (LPS) is a valuable tool to ensure that key activities are delivered on time and on budget. For example, the use of integrated planning tools on a large oil and gas project increased project productivity by 70%.
  2. Transforming relationships and interactions between owners and contractors, and key performance indicators (KPIs) being agreed on and used at regular performance meetings at which on-site issues are resolved. Complementing the commonly used KPIs with additional forward-looking plan conformance metrics to identify and reduce variance is critical.
  3. Improving the mobilization for new projects by ensuring that all pre-work (for example, obtaining approvals and developing project milestones) has been completed before starting on-site. 
  4. Careful planning and coordination of different disciplines on-site, applying lean principles to reduce waste and variability. At the heart of this issue is a need to move from systems that rely primarily on process and command-and-control toward a more holistic operating system. The sheer complexity and variability of today’s mega-projects require a project-operating approach that integrates technical and management systems and fully harnesses workers’ capabilities. In the future, new forms of digital collaboration, in particular the Internet of Things and advanced analytics, will enable to track equipment and materials and thus increase transparency.

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6.Integrate digital technology, new materials, and advanced automation.

As McKinsey’s research is showing, the construction sector is among the least digitalized together with agriculture and hospitality. This leads to poor project planning of schedule and budget.

The construction industry is ripe for disruption. Large projects across asset classes typically take 20 percent longer to finish than scheduled and are up to 80 percent over budget. Construction productivity has actually declined in some markets since the 1990s; financial returns for contractors are often relatively low — and volatile. Construction lags significantly behind other sectors

Companies can start by integrating 3D building information modelling (BIM) within the company and using digital collaboration tools, drones, and uncrewed aerial vehicles for scanning, monitoring, and mapping. They can come to the forefront by using platforms such as 5D BIM to establish transparency in design, costing, and progress visualization; advanced analytics enabled by the Internet of Things to improve on-site monitoring of materials, labour, and equipment productivity; and digital collaboration and mobility tools (such as construction management apps loaded on mobile devices) to better track progress and collaborate in real-time. 

On-site productivity can be increased by 50% by implementing a cloud-based control tower. It quickly gathers accurate data in near real-time, both retrospectively and for predictive purposes (for example, using plan conformance and other variability and inventory metrics). Owners must ensure that the correct data flows through the various owner, contractor, and subcontractor systems. Big data also has a significant role to play. Techniques and data available today can significantly improve the accuracy of cost and schedule estimates and engineering productivity. Developing new lightweight materials and construction methodologies such as prefabricated pre-finished volumetric construction can further facilitate off-site fabrication. Advanced automated equipment and tools such as bricklaying and tiling robots can accelerate on-site execution. The introduction of predictive analytics and pattern recognition has enabled far more sophisticated monitoring of construction projects. One example is the network of sensors installed to track the impact of tunnelling works for London’s Crossrail project.

MGI’s productivity survey indicated that construction companies' biggest barriers to innovation are more broadly underinvestment in IT and technology and a lack of R&D processes. Establishing innovation officers can make a difference in technology adoption through its use of digital tools and it is slow to adopt new materials, methods, and technology.

Significant advances being deployed or prototyped today can transform the effectiveness and efficiency of construction in three areas: digital technologies, advanced materials, and construction automation.

Digital technologies—from 5-D building information modeling to advanced analytics—have spread rapidly. In McKinsey’s survey revealed that more than 44 per cent of respondents have adopted some digital technology, and planned adoption within the next three years is expected to reach 70 per cent.

A single source of truth for all project teams.

The additional benefit that BIM enables is the design of components that can be produced off-site and to better specifications that significantly impact the rest of the construction process.

A single source of truth means having operational data that everyone working on a construction project can trust and that is accurate. It is more than just good document management; it means project teams working at different sites, at the office or on-site, sometimes even on other parts of the world, know they are working with the right data without duplication. This trust and better transparency across multiple projects, teams and locations are essential to reduce errors, improve communication, increase productivity and mitigate risks.

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7. Re-skill the workforce.

Change in the construction sector cannot be achieved without investment in retooling workforce. Construction companies and workers need to continuously improve and train themselves to use the latest equipment and digital tools. This should include apprenticeship programs such as the one run by Siemens in the United Kingdom, which provides first-hand training in basic skills that are currently underdeveloped and increasing stability in the workforce by eliminating seasonality and cyclicality.

Change cannot be achieved without investing in transforming a workforce that is undergoing major demographic changes.

Collaboration is key; funders, educators, and public officials who run workforce-training programs should collaborate with contractors and trades to ensure skills programs match the industry’s needs. Megaprojects should be seen as long-term catalysts to work with local workforce boards or nonprofits and develop regional training programs.

“While we are all using iPhones, construction is still in the Walkman phase,” says Ben van Berkel.

“While we are all using iPhones, construction is still in the Walkman phase,” says Ben van Berkel, founder and principal architect of the architectural practice UNStudio in Netherlands. In fact, many of the tools and practices used by the industry aren’t even as high-tech as the Walkman. For many years, technology simply couldn’t compete with the convenience and simplicity of paper. But today, the opportunities afforded by digital technology are far superior to anything paper can offer. By using any Common Data Environment platform the team can facilitate communication and reduce the number of questions and issues that usually appear on the construction site because of poor communication and late delivery. Increasing communication will certainly reduce rework and backtracking. However modern construction demands have made communication much more difficult. With many stakeholders to keep in the loop and mountains of data and documents to manage, construction projects are more complex than ever. As a result, the old ways of collaborating and communicating aren’t effective enough to handle this fast-paced, information-saturated age.

Now you know all of the seven key points the construction sector requires to improve its productivity and offer a better product. If you want to find out more, remember to follow us on our social networks. In the next article, we will discuss how digitalization of construction industry can help reduce cost of the construction. 

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