Cover Page ELECTRI International 2013 FULL PROPOSAL Title: Lead Researcher: Measuring Productivity and the Impact of Prefabrication on Productivity Mark O. Federle, Ph.D., P.E., CPC, F.ASCE McShane Chair in Construction Engineering and Management Associate Dean for Academic Affairs, College of Engineering Marquette University PO Box 1881 Milwaukee, WI 53201-1881 414 288-4531 (phone) 414-288-7521 (fax) Mark.Federle@marquette.edu Title & Estimated Budget: Measuring Productivity and the Impact of Prefabrication on Productivity Research Category A: Productivity Enhancement Project Summary: The objective of this research is to provide information for electrical contractors to better understand the impact of that prefabrication can have on their crews productivity. Also provided will be best practice strategies to guide electrical contractors in their implementation of prefabrication within their firms. This research will provide guidelines to the electrical contractors on how to better measure productivity and then provide a framework for EC s to use in determining their steps in implementing or enhancing their prefabrication efforts. To accomplish this objective, the PI will use a focus group and personal interview case study approaches. The outcome from the focus group and personal interviews will be a report summarizing the findings of the study with suggestions on how electrical contractors can document the impact of prefabrication on their field and project management staff. It is anticipated that the research results will be disseminated through presentations at NECA Chapter Meetings, the Annual Convention, and through an MEI seminar developed based off the results of this research. Federle, ELECTRI application p. 1
The Proposal a. Introduction and Justification Issue to be Addressed. The productivity of field and office personnel and the use of prefabrication in the Electrical Contracting industry are intertwined. This project seeks to untangle and objectively characterize the relationship between productivity and prefabrication. This will result in the development of a set of best practices that will enable Electrical Contractors to optimize the use of prefabrication to obtain peak productivity. Current Conditions & Practices in the Electrical Contractor Industry. The current conditions in the Electrical Contractor Industry require contractors to continuously seek to improve their competitiveness by increasing productivity. Without concrete evidence to identify the optimal use of prefabrication, it is impossible for Executives to make sound decisions to positively impact their productivity. Action Needed to Address these Issues. Focus groups and face-to-face interviews are required to examine the following questions: How do various contractors measure and track productivity on their jobsites and in their shops? (It will be important to separate measures of production from measures of productivity; much of this will build off the work previously completed on productivity and captured in ASTM Standard E2691-09.) How do contractors make the decision to prefabricate, and how do they evaluate the impact that has on the shop and the field? What resources are required for an Electrical Contractor to initiate prefabrication efforts? Particular focus will be placed on identifying the education and training necessary for the EC Owner, Project Management Staff, Field Management Staff, and the GC/CM/client Staff as well as the necessary technology, space, etc., for the effort. What resources are required for an Electrical Contractor to move beyond initial prefabrication efforts towards a model where the bulk of the project is prefabricated? Particular focus will be placed on identifying the education and training necessary for the Project Management Staff, Field Management Staff, and the GC/CM/client Staff as well as the necessary technology, space, etc., for the effort. How do productivity and production measures change based on the amount of prefabrication completed? b. Goals and Objectives Purpose of the Project. The purpose of this project is twofold: 1) analyze how leading Electrical Contractors measure field and office productivity and 2) analyze how Electrical Contractors document and measure the impact of prefabrication on the productivity of their field and office personnel. Intended Audience. Executives in electrical contracting firms are the target audience for the final report from this project. How the Product will be used by Electrical Contractors and the Electrical Industry. The final report, a collection of best practices, will provide executives with the tools to measure and then improve the productivity their offices and projects. The best practices report created Federle, ELECTRI application p. 2
will be presented in an understandable, easy to use format that can be quickly implemented by Electrical Contracting firms. c. Work Plan Deliverables and Timeline for Completion. This study will seek to understand how productivity of field and office personnel is measured and identify the impact of prefabrication on both field and office operations for electrical contractors. The impact and use of prefabrication within Lean Construction and BIM and VDC will be explored. Specific tasks include: Task 1: Task 2: Task 3: Task 4: Review the literature available on measuring productivity, the ASTM Standard, and prefabrication in the electrical contracting industry. Evaluate and identify the methods and models used within the industry and develop a series of questions for the focus groups and case studies. Plan and conduct 4 focus groups for the electrical contracting industry to identify the key forces and directions in prefabrication for the electrical contracting industry and the potential market areas. This workshop would also examine the needed education and training for the EC Owner, Project Management Staff, Field Management Staff, and for the GC / CM (or client). Additionally specific requirements such as those for technology / space will be identified. Participants in the workshop will come from all segments of the electrical contracting industry both line and commercial construction. Plan and conduct 10 individual case studies with leading electrical contractors who have a fully implemented prefabrication operation in their shop. Determine how they measure and track productivity both in the field and office and how they measure success of their prefabrication efforts. Document the results and provide a short seminar at the annual NECA Convention (and webinar series if desired) on prefabrication and productivity. A brief timeline is shown below. 3/2014 5/2014 Task 1: Literature Review and Task 2: Focus Groups 6/2014 8/2014 Task 2: Focus Groups 9/2014 12/2014 2/2015 11/2014 Task 3: Case Studies Development Task 4: Document the results, develop report, article, and best-practice recommendations. Create the presentation for the NECA Convention and the MEI short course Dr. Mark Federle, will conduct 4 focus groups with electrical contractors at NECA chapter and regional meetings (it should be noted that a letter of support from the San Francisco NECA Chapter is attached at the end of this proposal we are currently seeking additional chapters for participation). Using the results of those focus groups, Dr. Federle will conduct specific case studies with 10 leading electrical contractors (it should be noted that a support letter from Nelson Electric in Cedar Rapids Iowa is attached we are currently seeking additional chapters for participation). Federle, ELECTRI application p. 3
Through the case studies and the focus groups, individual site visits and personal interviews will be used to answer the questions needed to achieve the objectives above. The focus groups will provide details on how contractors are currently using prefabrication to enhance their competitiveness. The case studies will allow a deeper dive into the changes electrical contractors have had to make to achieve increase use of prefabrication. These case studies will develop measures for productivity of field and office operations and how it is impacted by prefabrication. A balance of electrical contractors working in line work and inside work will be specifically sought out. It is anticipated that these focus groups will be held in conjunction with other NECA activities both to encourage participation and also to ease the challenge of finding suitable participants. In measuring productivity and determining the impact of pre-fabrication on the electrical contractors operations, it is important that as many different views as possible be incorporated. These case studies will serve as a guide to other electrical contractors either seeking to increase their prefabrication efforts or seeking to understand how they could use prefabrication to increase their competitiveness in the marketplace. d. Product Information Dissemination Unique to this project is a focus on the impacts that prefabrication has across the organization (not just in the field). Prefabrication has the opportunity to dramatically reduce the transaction costs that occur in normal contracting. By determining best practices to eliminate non-value added steps in the RFI/submittal and review process, streamlined operations saving both client and contractor money is likely. By identifying and quantifying these impacts, a best practices report will be developed that can be used by electrical contractors regardless of whether they specialize in line or inside work. Using the information collected in the focus groups and case studies, Dr. Federle will develop a research report, magazine article, seminar outline for NECA-MEI, presentation for the annual convention (a short seminar at the annual NECA Convention and webinar series, if desired, on prefabrication and productivity will be developed), and set of best-practice recommendations. Additionally it is suggested that MEI establish a webinar series, part of that series could be specifically presenting the research results, and subsequently contractors active in pre-fabrication would present what they are doing to enhance their prefabrication efforts and share best practices. The Final Report is expected to include the findings from the focus groups and case studies and provide a guide for contractors to conduct their own prefabrication efforts. The guide will be a step-by-step procedure for implementing prefabrication and measuring its impact on productivity. There will be two sections, one for the beginner at prefabrication, one for those seeking to dramatically increase their prefabrication efforts. e. Benefit to the Industry By providing clear instruction on how to measure productivity and how to begin or enhance prefabrication efforts, electrical contractors will increase their competitiveness. One true believer in pre-fabrication has indicated already in a personal interview that they are pre-fabricating close to 90% of the work that they used to stick build and they are taking back markets that had been lost to lower hourly cost contractors. Truly as electrical contractors seek to improve their Federle, ELECTRI application p. 4
competitiveness, completing work in a way that enhances safety, quality and productivity will result. Personnel Mark Federle earned his PhD and Masters in Construction Engineering and Management from the University of Michigan. Mark is a licensed Professional Engineer and a Certified Professional Constructor. Mark was awarded The Career Achievement Award by Rose-Hulman in 2005. He was recognized by AGC of America as Instructor of the Year in 2011. He is a Fellow of ASCE. Mark is currently the Associate Dean for Academic Affairs and the McShane Chair in Construction Engineering and Management at Marquette University. He has responsibility for running the 13 th ABET - Accredited Construction Engineering program in the country. Previously, he was Chief Information Officer for The Weitz Company in Des Moines for 9 years. Prior to joining The Weitz Company, Federle was the Professor-in-Charge of Construction Engineering program at Iowa State University, where he taught for nine years. Dr. Federle has been active with the Electri International Foundation and NECA since the mid- 1990s. He successfully completed a number of studies for the Foundation, including: 1. Tool and Material Control Systems (1995), 2. Electrical Contractor's Guide to Partnering (1996), 3. Design-Build Strategies (1998), 4. A 21st Century Action Plan for Electrical Contractors and Their Workforce (1999), and 5. Establishing a Best Practices Program for Electrical Contractors (2003). Additionally, he has spoken extensively at National, Regional, and State NECA conventions. Mark serves NECA as an instructor in a wide variety of courses, currently providing instruction in Lean Construction for the Electrical Contractor. He has published extensively on electrical contracting, both in Electrical Contractor Magazine. Federle, ELECTRI application p. 5
Budget Budget Item Cost 1 month summer salary and fringe benefits $19,634 for the PI (Mark Federle) Summer Support for an Undergraduate $5,000 Student Supplies $500 Domestic Airfare $8,000 Subtotal $33,134 Indirect Costs (10%) $3,313 Total project cost $36,447 Federle, ELECTRI application p. 6
December 26, 2013 Marquette University P.O. Box 1881 Milwaukee, WI 53201-1881 Attention: Mark Federle RE: Pre-fabrication and Productivity Study Dear Mark: Thank you for sharing the information on your proposal to the Electri Foundation. On behalf of the Nelson Electric Co., please accept this letter in support of your research. We are available to assist with your project discussing how we choose projects to use prefabrication on and how we measure productivity of our field forces. We have provided data for studies conducted for the Electri Foundation in the past and look forward to helping you with this project. Best regards, T.J. Meiners, PE, LEED AP Vice President of Engineering Nelson Electric Co. Post Office Box 967 Cedar Rapids, Iowa 52406 Phone: 319-366-6257 Fax: 319-366-6083 E-mail: nelsonel@nelsonelectric.com