Total Construction

Service

Total Construction Service

A construction company offers customers

products including a range of clearly defined options

a range of financial options servicing and maintenance packages

a firm price and fixed completion date

Industrialised Housing

Housing using factory producedstandardised components

provides the basis for many of the best examples of

Total Construction Service companies This is because there is

a large demand for housing

Industrialised Housing

• Customers are offered a wide range of choice in the size and layout of their houses

• Sales offices enable customers to discuss their needs and consider the latest designs

• Show rooms enable customers to see and try the options

Industrialised Housing

Industrialised Housing

• Once a design, price and completion date are agreed

• Parts and sub-assemblies are manufactured• The site is cleared, and foundations and

underground services are produced• Prefabricated components are delivered and

assembled• The completed house is handed over

Industrialised Housing

• World class quality• Quality circles require teams to relentlessly

improve their own performance• Companies invest in training their staff• R&D departments steadily improve the

products and working methods• Companies hold seminars with customers to

discuss possible improvements

Industrialised HousingCompany Strategy

Use

Development Production

TOTAL CONSTRUCTION

SERVICE

Feedback

Total Construction Service Companies undertaking General Construction

• Develop over many decades• Build secure demand • Focus on quality and efficiency• Develop long term relationships• Invest in their staff• Invest in R&D

Total Construction Service

• Process delivers:• Reliable quality – facilities complete at

hand over and fully working • Completion exactly on time every time• Highly efficient as judged by many

international research studies• Excellent safety record

Brief

• Results from discussions between customer’s organization and total construction service company sales staff

• Sales staff actively search for opportunities where construction can provide real benefits to a customer’s business

• Brief is very detailed and describes everything the customer needs

Design and Plan

Produced under the direction of experienced project manager

using highly developed systems which embody the company’s

design details and construction methods

Design and Plan

• Drawings show every detail of every element• National standards mean the specification

can be very brief• Every days’ production is planned in detail• Procurement and manufacturing planned to

feed into the production plan• Commissioning is planned in complete detail

including setting exact targets for every test

Procurement

• Project manager selects subcontractors from amongst those who have worked with the company for decades

• Project manager states the work to be done, the exact dates it will be carried out and the price to be paid

• The subcontractors agree

Manufacture, Production and Commissioning

• Project manager and his team based on site• The project manager briefs the whole work

force at 8.00 am• Project manager meets with all the foreman at

3.00 pm to solve any problems and agree the next day’s work

• Deliveries are made exactly on time• Work continues until the day’s work is

complete

Quality and Safety

• Use tried and tested methods• Measure performance continuously• Safety built into production methods• Use protective screens• Keep site tidy• Driving principle of doing work right first

time• Correcting mistakes costs much more

Problems

• Tackled immediately• Delays corrected by working longer days, at

week ends or bring in night shift• Project returned to original plan as quickly as

possible• Nothing ever allowed to cause a project to

finish late or cause a customer to be asked for additional money

Quality Circles

• Teams meet every week to discuss work and identify and consider improvements

• Best ideas are taken to research institute• Ideas which provide real benefits are discussed

with all likely to be affected• Tried on one project and evaluated• If the benefits are real, the idea is adopted• Team performance evaluated every six months

Research Institute

• Key part of company’s success and reputation

• Most successful companies have large well staffed and equipped institutes

• Support project teams• Do long-term research into major

improvements• Produce eye catching ideas for the media

Total Construction ServicePerformance

• International comparisons suggest construction costs about 25% lower than alternative strategies• Quality more reliable• Completion on time significantly

more reliable

Total Construction Serviceacts on the following propositions

• Reduce the number of teams involved• Improve the quality of relationships• Reduce performance variability• Reduce external interference

plus

Total Construction Serviceacts on the following propositions

• Select teams competent in the technologies required by the project

• Ensure teams accept the agreed objectives• Ensure teams are motivated to achieve agreed

objectives• Foster accurate communications between

teams• Minimise the effort needed to achieve

accurate communications between teams

Total Construction Serviceacts on the following propositions

• Minimise the length and intensity of negotiations over the transactions which bring teams into the project organization

• Ensure teams regard the transactions as advantageous to themselves

• Minimise the resources teams devote to improving the terms of the transactions which brought them into the project organization

Total Construction Serviceacts on the following propositions

• Satisfy the requirements of local or specialised markets to ensure company’s survival

• Develop teams with well developed skills and knowledge which match the requirements of projects

• Develop teams integrated by established relationships

• Improve the quality of support provided to teams by their companies

Total Construction Serviceacts on the following propositions

• Foster innovations which match the requirements of projects

• Ensure the use of effective information systems

• Establish values which run consistently throughout their organization

• Ensure their organization acts in ways which are intended and authorised

Total Construction Serviceacts on the following propositions

• Ensure communications are effective and result in common understandings

• Ensure transactions are agreed with minimum effort, accepted as fair, foster established relationships, and are acted on in the spirit in which they were agreed

• Ensure their organization forms established relationships with other organizations

Total Construction Serviceacts on the following propositions

• Ensure their organization collects, reviews and acts on feedback about the effects of its action on its objectives

• Ensure their organization collects, reviews and acts on feedback about the effects of established norms and procedures

Project using Total Construction Service

The project is to construct a new hotel on a virgin site. The hotel has 300 guest rooms

and the other spaces expected in a 5* hotel

The building is 10 stories high with a steel structural frame, concrete beam floors and

roofs, and high quality, pre-fabricated external cladding.

Teams Team-daysBrief 1 80Design 10 460Plan 1 50Procurement 4 120Manufacturing 8 150Production 32 1340Commissioning 4 100TOTALS 60 2300

For a project with 60 teams (N=60)

Possible relationships = 60 x 59/2 = 1770

1196 of these do not occur

Actual relationships 1770 – 1196 = 574

Largest number of teams in one time interval is 20 in 13th time interval

Technical design teams are producing production information for the last remaining components

Half of the manufacturing teams are manufacturing fully designed componentsSubstructure production is in full swing

The work is supervised by the control teams

20 x 19/2 = 190 possible relationships

During the 13th time interval the following teams work simultaneously

2 out of 4 technical design teams2 out of 2 production information teams

2 out of 2 plan and control teams1 out of 1 contracts and payment system teams

4 out of 8 manufacturing teams3 out of 3 substructure teams

This gives a total of 14 teams with 91 relationships

Established Relationships

Every team on a project has established relationships with at least one but often several

other teams giving a total of 568 established relationships

Established Relationships Indicator ER=568/574=0.99

The relationship fluctuation indicator FE = 0.99

This reflects a strong influence of established relationships throughout the project because both ER and FE are comparatively really high

Total construction service companies are based on established relationships developed over

many past projects

Relationship Quality Indicator for established relationships ranges from 0.95 to 0.99

Total Relationship Quality Indicator560/574=0.98

The high number of established relationships together with the number of high values for

individual Relationship Quality Indicators means the total Relationship Quality Indicator is good

because the 568 established relationships out of possible 574 relationships are of very high quality

The project organisation is not overly complex There are 30 time intervals out of a potential

maximum of 119

The intervals are relatively short in comparison to total project duration (prevent escalation

of problems when teams interact for a prolonged period)

Relationships configuration complexity indicator = 0.83

The past performance of the 60 teams over their previous 10 projects provides team Performance Variability Indicators which

range from 0.95 to 1.0

Performance Variability Indicator Rp=0.99

Historical records for projects using Total Construction Service gives

External Interference Indicator = 0.84

Established Relationships ER=0.99

Relationship Fluctuation FE=0.99

Relationship Quality QR=0.98

Relationship Configuration CR=0.83

Performance Variability Rp=0.99

External Interference I=0.84

Project using Total Construction Service