Category Archives: Strategic Planning

Knowing Your Construction Team’s Speed

While most contractors have probably heard of “cycle time” some may not be comfortable or used to measuring cycle time.  Cycle time is the time that it takes for a work process to be successfully completed, from start to finish.  In the end crew cycle time, or CCT for short, is a measure of your crew’s speed at work.

construction team's speed

Photo courtesy of FreeDigitalPhotos.net

Cycle time is closely monitored in most manufacturing facilities.  Plant managers realize that if the cycle time to produce a product should be fifteen minutes, and the actual time is taking more like twenty or thirty minutes, something is preventing the expected time to produce the product.  Such interruptions to the expected cycle time might be the result of faulty equipment, lack of preventive maintenance, or poorly trained operators.

Measuring You Construction Team’s Speed

Speed, or more accurately, cycle time, should be just as critical to you as a contractor and should be measured.  Why?  Consider how much more effective and accurate you can be with your estimates when creating proposals for customers.  If you can predict, within a reasonable tolerance of time, the time that it takes for your crews to complete different work processes you can provide more accurate estimates of costs and scheduled completion dates for your customers.

How do you measure your crew’s speed or cycle time?  Well, to begin trying writing the steps involved with completing the work your crews perform.  We call this “mapping” the workflow.  Mapping can include simply listing each step in the order that the step is to be performed or you can create “work flow charts” that utilize symbols to represent action, decisions, begin points, end points, etc.

No matter whether you list your job procedures line by line or with graphics, make sure that your entire job process is complete and takes into account each individual step.  For the paving crew this first effort might identify each step in cleaning a job site as one work process to measure.  Then, you might then list each step involved with laying the asphalt for a particular square footage of space.  You might follow-up this effort with the steps involved with rolling out the newly placed material.  Finally, you might actually identify the needed steps to clean-up and pull off the lot.

The second effort requires you to identify the actual time that it takes to complete each process step described in the previous paragraph.  If you do not have this information, or you are not confident that the time is accurate, you will need to complete a time study of any step in question. 

Over the years I’ve had contractors challenge how difficult it is to measure the time when performing work.  For many of these same challenges I’ve found that some contractors never attempt to measure any work process.  Another reason that contractors balk is due to their feeling that they already know how much time it should take a crew to complete a work process. 

Yet a third reason some contractors protest is that “no two jobs are ever the same.”  While most jobs are a bit different we still need to get an accurate picture of how effective and efficient our crews are working.   Are they only productive on the big, open, and easy to lay asphalt jobs but we loose our shorts on any islands or funky landscaping pattern in the lot?  This is even more reason why we need to have an idea as to what our crews are capable of producing.

Completing a Time Study

Completing a time study is not difficult.  Using a stopwatch, record the beginning time you or your crew begins a particular step and the completion time.  To provide you with some level of confidence about the cycle time of a process step, you should measure the same process step on several jobs and then take the average of the times recorded.  Once you are confident that the average time for a particular step is secure, establish this time as your cycle time for the step or process that was timed.

One secret measuring effort I’ve used before is to measure the average time a paving crew can place eight ton, then sixteen ton, then thirty-two ton, etc.  Having a breakdown of tonnage can then help me to be more accurate, and faster, when putting estimates together.  You might measure your seal coat crew on applying one coat per ten thousand square feet or other increments of square footage often completed.

When you are developing a cycle time standard for a process, be sure that the steps used to complete the process are the same.  If you record the same process three different times, and the order of completing the process is different each time, you will potentially bias the average time arrived at.  Such a miscalculation could prevent you from establishing a dependable time to base your customer bids and job scheduling on.  In other words, compare lots that have no islands as an example against each other.  Then, measure your crews on similar size lots with two to four islands.  Bunch similar type jobs together so you are confident in the benchmarking of lots.

Cycle times can be established for any process within your business.  Once you have established cycle times, make sure that you inform your employees.  Cycle times should become the standard operating goals for completing jobs.  Therefore, when processes take longer than expected to complete, compared to the established cycle time standard, questions should be raised as to the possible causes for the additional time.  Remember, time is money…I mean speed is money!

Using cycle times as goals can be very motivational for your crews.  In fact, as you seek to improve your company’s performance, any changes in techniques or use of a newer tool or piece of equipment should be compared against the cycle time.  Did any new technique or equipment help you perform your work faster?  Did the shorter time frame also include maintaining or improve the level of quality in the job?

Cycle times can assist you to monitor whether your crews are following the proper work procedures, or are using the proper amount of materials, or whether the equipment used is operating properly.  Tracking cycle times will strengthen your proof that your company procedures and values are being conformed to by your employees.

First measuring your firm’s various cycle times and then tracking the cycle times for jobs will add to your understanding of your business.  When cycle times are disproportionately higher or lower than your standards, you should begin to inquire as to the reason for such differences.  While not every job will meet the exact cycle time established, you should expect that most jobs will be completed within an acceptable tolerance of the cycle time.

If you have never considered cycle times as necessary to running a better business or have traditionally “guesstimated” completion times, you have prevented yourself from bringing greater accuracy to you effort.  Try taking a few processes that your crews perform and establishing cycle times.  Then, monitor all future similar processes by recording your cycle time trends.  Keep your crews informed about the trends and watch the level of perfection begin to improve!

5 Spring Training Tips to Get Your Season Off to the Start You Want

professional coaching

For the seasonal pavement maintenance contractor, getting equipment ready and employees prepared has most likely already begun. For the year-around contractor, there is still something extra special about “spring training.”

Maybe it’s our love for sports but most contractors admit that getting prepared for the season is something that must be done. Having recently completed the National Pavement Expo in Charlotte, I certainly met many owners and leaders primed and prepped to get the season started – or to re-calibrate their current effort with a renewed commitment to planning, organization, and quality execution.

So, if “spring training” is in the air at your company, here are some pre-season tips that might assist your efforts to be better this season than you were last.

 

Check out the latest post on Spring Training from Brad Humphrey, the Contractor’s Best Friend!

Source: crew training tips | ForConstructionPros.com

Getting Customer Referrals

The traditional contractor was an expert on their trade.  If it was a carpenter who could form any concrete job or the finisher who made concrete smooth as silk the traditional contractor knew his or her business.  However, there was also something that many contractors were not as effective at addressing.

Completing a job is still the best and easiest part of concrete for many contractors. 

Customer Referrals

Photo courtesy of FreeDigitalPhotos.net

When the project is completed too many contractors still fail in getting referrals from the customer.  This not only is a failure to land future business opportunities but it is also a failure to bring a professional closing to your efforts.  Let’s take a brief look at the latter reason to ask for referrals and then focus the remaining article on the methods to employ in getting referrals from your customers.

Asking for referrals at the conclusion of your projects sends a very direct and professional signal to your customers that you are proud of the effort that your company has completed from start to finish.  A contractor who is embarrassed by their company’s effort will send the bill in the mail or “chicken out” and have their foreman drop the remaining bill on their way departure from the job.

The contractor, or the estimator/salesman who landed the job, should approach the customer confidently, thanking the customer for the opportunity to perform their work.  Then, the contractor should personally hand the remaining billing statement to the customer and walk through the life of the project, encouraging the customer to ask any questions that they might have.  This effort brings a strong close to a process that was started to improve the customer’s needs or meet their expectations.

Now, let’s address the great need to solicit referrals from your customer.  First, customers who are satisfied with the work you have completed are more likely to share the names of others who might be in need of your services.  Why wouldn’t they?  Think about it!  If you have just taken your spouse to a new restaurant and enjoyed a quality meal with attendants waiting on your every move wouldn’t you be very excited about telling your friends about your experience?  Many of us might even call a friend to tell them of the experience.  The same is true for your customers if they are satisfied.

OK, let’s assume that we are dealing with satisfied customers.  Then how do we go about getting referrals from our customers?  Consider a few suggestions and techniques

1. Just Ask! 

No secret here.  Asking your customer for the names of others who might also be interested in your services and quality concrete work should be as natural as breathing.  How do you actually ask for referrals?  Let me give you a non-threatening phrase you might adapt.

“Mr. Humphrey, thank you for your business.  We really appreciate the opportunity you gave us to do your work.  We’re always interested in working with good folks, would you be able to provide three or four names of individuals you know that might be interested in some of our services?

At this point you should be looking up at the customer with a pen and pad ready for the names.  You may only get one or two names; then again, you might get five to seven names.  It’s happened to me several times.  Keep that pen and pad in full view of the customer and watch the names start coming!

2. Invite Customer’s Friends to Job Site

This technique is especially good if you have discovered in your selling process that your customer mentioned other friends of theirs with similar problems or desires. During this type of discussion you might ask your customer about what they know about their friend’s problem or want.  Then, as you get close to finishing your customer’s project invite your customer to ask their friend over to see your crew’s results.  Always invite on the finishing up side so the customer sees the “good stuff” not all the torn up effort and debris.  Often a live visit from the customer’s friends may win you more work and is clearly a referral building effort.

3. Give Away Three to Five Business Cards

This is an old sales technique that still works.  In this high tech world we live in it is still funny how many customers still ask for business cards.  So, always give your customers more than one card; give three to five.  While a few may be thrown away a few cards may also be given away to their friends when those friends ask about the great job that was performed.  Giving cards away to your customers allows them to become sales people for you.  Again, this is a solid referral driving technique that can land you work.

4. Ask for E-mail Addresses

Just as you might ask for the names of friends from your satisfied customer so too can you ask for e-mail addresses of their friends.  It’s a sign of our times when we memorize more e-mail addresses than phone numbers.  Depending on the type of customer you have performed work for, try asking for e-mail addresses for their friends who might also need similar work performed.

5. Follow-up with Referral Requests

It is good salesmanship to always send a follow-up note to a customer after the completion of a project.  Use this same effort to include asking for three to five names of friends or work associates who could use your company’s efforts.  I recommend enclosing a half page that your customer can easily write down a few names and contact numbers.  Always include a self addressed envelop with a stamp to make it easy for the customer to just drop in the mail.  You may not get many to respond to this effort BUT for those few who do it more than pays for the postage.

6. Offer a “Commission” for Customer Referrals

A final technique that has been quite successful for many contractors is offering a commission to customers who refer you to other prospects that lead to a sale.  I’ve seen residential contractors give $50-$100 to customers who gave them a lead that turned into a sale.  This might not be appropriate with commercial customers however sending gift certificates, tickets to ballgames, wine packages, etc. are all examples of “commission” that might be used.

One note of special significance is the impact of referrals on your bottom line.  Working your current customers to gain new business opportunities is the best use of your marketing dollars possible.  Such an effort literally costs nothing!  What this means to you is increased profits as you have little to no costs associated with landing the new business.  Thus, you can afford to spend a little money on postage and even giving away a few free ball tickets.

referrals 2

Photo courtesy of FreeDigitalPhotos.net

Realize that you’ll need to use more than one of the suggestions listed earlier.  Be creative in your offerings but more than anything else I can suggest, get into the habit of asking for referrals every time you close out a job.  Be proud of your company, your workers, and your production results.  Good luck!