Lean Built

Author: Nicolas M.

What is Value Engineering in Construction?

Posted on by Nicolas M.

Welcome to our blog on value engineering in construction! Today, we’ll dive deep into what value engineering truly is, what it isn’t, and how it can be effectively controlled to achieve the desired outcome. If you’re interested in understanding what value engineering should be, what it definitely cannot become, and how to steer it towards the right outcome, you’ve come to the right place. 

What is Value Engineering in Construction?

Let’s start by defining value engineering. In construction, value engineering is a systematic, organized approach aimed at optimizing the value of a project by balancing cost, function, and quality. This involves analyzing project functions, identifying value-add cost-effective alternatives, and implementing innovative solutions designed to help the project meet its budget targets while maintaining essential features. The purpose of value engineering is to involve all stakeholders and disciplines in problem-solving to design a project that lowers the overall total cost but still maintains good quality and supports the project’s life cycle.

Value engineering’s true intent is to eliminate waste and any design elements outside the project’s parameters or performance criteria, ultimately making the project valuable or profitable for the owner. However, it is not meant to be a tool for general contractors to simply cut out crucial design elements to meet budget constraints.

The Key Points of Value Engineering

The essence of value engineering is to optimize value by balancing cost, function, and quality, improving the efficiency and effectiveness of the building throughout its life cycle. This ensures the best possible design. However, there’s a common problem: many people have a negative impression of value engineering, and often, they have good reason.

How General Contractors Usually Make Proposals for Projects

Here’s a typical scenario: when general contractors propose on a project, they create a CPM schedule, which is a target or predictive schedule based on what the owner wants. However, this schedule often lacks good logic, trade flow, and realistic production simulation, leading to an undercut project timeline.

For example, in the proposal phase, the owner might be promised a 20-month project timeline. During concept design, the timeline still appears to be 20 months, and this continues into schematic design and design development. However, halfway through, the contractor realizes the project will actually take 24 months. This realization comes too late, leading to significant cost increases and project delays.

Effects of Choosing the Lowest Bid Contractor

Often, the winning contractor is the lowest bidder, which incentivizes them to spend the least amount of time and resources on the project. This approach rarely results in the lowest overall project cost. As the project progresses, additional features and systems are added, and the initial 20-month estimate turns out to be unrealistic.

What Happens When Value Engineering is Done Wrong

When it becomes clear that the project will actually take 24 months, costs skyrocket. For example, extending the project by four months can add significant costs in general conditions, general requirements, insurance, and delayed occupancy, potentially turning a $3 million problem into a $6 million one. This mismanagement leads to one of two outcomes: making the owner and designers unhappy by cutting crucial design elements or overburdening workers, resulting in a project that finishes even later than planned.

Better Way to Do Value Engineering in Construction

To avoid these pitfalls, a better approach to value engineering is to use a tech production system early in the design phases. This ensures an accurate understanding of the project’s timeline and costs from the beginning, allowing for a design that stays within budget and meets quality and function requirements. True value engineering should always be about balancing value, cost, quality, and function from the start, not cutting off essential features later on.

 

We hope you found this blog on value engineering informative. Stay tuned for more insights and practical tips in our upcoming posts!

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

Safety First: A Core Principle in Construction

Posted on by Nicolas M.

INTRODUCTION
In this blog, we’re going to discuss why safety is always our top priority in the construction industry. It’s not just a value but a fundamental part of our operations. I’ll share a touching story, a common observation in the industry, and practical steps to make safety a core aspect of your career. 

I once heard a speaker, Jeff Espenship, who shared an impactful story about safety. Jeff was a fantastic speaker, and his story left a lasting impression on me. He used to fly show planes for air shows while holding a day job. One time, he asked his brother and a companion to fly a plane to an air show, but the plane crashed, and no one survived. This included his brother, and the loss devastated Jeff and his family.

Jeff explained that in some old prop planes, hydraulic lock can occur, where fluid inside the cavity prevents the pistons from fully moving, stopping the propeller. To avoid this, a certain number of manual rotations of the propeller are required to ensure everything is fine. Jeff recalled a time when he and his brother were in a rush to take off before a storm hit. He decided to skip the propeller checks, thinking they didn’t have time. They made it safely, but this shortcut set a dangerous example for his brother, who later skipped the checks, leading to the fatal crash.

This story underscores a critical lesson: safety must always come first. Jeff’s actions, driven by urgency, indirectly led to his brother’s death by setting a precedent that it was okay to skip essential safety steps.

Reflecting on this, I remember starting in construction where “safety is number one” was a common phrase. At DPR Construction, I learned that safety isn’t just a priority, which can change, but a core value. Later, I encountered a powerful idea: safety isn’t just a priority or a value; it’s always. This mindset is crucial because how we approach safety reflects in every aspect of our work.

Another personal story illustrates this further. My first boss, who was like a mentor to me, tragically lost his son in a construction accident. His father, while operating a blade, accidentally ran over his son, killing him instantly. This event shook me to my core and reinforced the importance of setting a good example and maintaining a strong safety culture.

One more story involves a superintendent on a multi-family project. Despite agreeing to follow safety protocols, I later found him working unsafely on a roof without fall protection. His actions signaled to his team that safety wasn’t a priority, leading to ongoing safety issues on the job.

These stories highlight a crucial point: the example set by leaders directly influences the safety culture on-site. Human nature prioritizes social acceptance, so workers often follow the lead of their supervisors. This is why it’s vital for those in leadership positions to model safe behaviors consistently.

To establish a culture of safety in construction, consider these steps:

  1. Learn It: Educate yourself on safety protocols, even if it means going through extensive training like OSHA 30. Understanding safety rules and guidelines is the first step.
  2. Implement It: Ensure safety measures are in place on-site. This includes guardrails, lifelines, safety nets, and overall job site organization to keep everyone safe.
  3. Hold the Line: Enforce safety standards strictly. If someone is unsafe, address it immediately. Send them for additional training or resources if necessary. Do not tolerate unsafe behaviors.

As leaders, it’s our responsibility to ensure everyone goes home safely. This means prioritizing, valuing, and always considering safety in every aspect of our work. Remember, safety isn’t just a set of rules; it’s a mindset that requires constant vigilance and commitment.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

The Construction Industry’s Hidden Problem

Posted on by Nicolas M.

In this blog, I’m going to talk to you all about unhealthy competition and why it’s so destructive for our industry. So, would you like to know what happens when we have unhealthy or toxic competition, the negative impact it has, and what we should do to fix this right now? If you do, stay with us on this blog because that’s what we’re going to discuss. 

A Little Analogy to Understand the Issue

Let’s anchor back with a bit of an analogy in our minds. When we think about competition, most people think capitalism, competition, and advancement that will help the industry. But let me explain it like this: imagine a competition in a college designed to produce the best overall project or solution. What if those entities started hiding information from each other, hurting other parties, bad-mouthing, and damaging reputations? What if they siloed information and didn’t use the collective genius of the group or did whatever the host wanted instead of innovating, and then never shared the results so others could utilize and scale the solution?

Imagine such a scenario. You’ve seen it before in sports where a healthy competition turns toxic—defacing property, hurting mascots, or even beating people up—leading to the cancellation of the game. That’s what the construction industry is like. We’re in a situation where we are hurting each other through negative competition, not sharing, and not leveraging the wisdom of the team. When someone finds something out, they don’t let it scale to the rest of the industry, causing stagnation and harm.

Major Causes of Unhealthy Competition in Construction

Here are the reasons people compete like they do in the construction industry:

  1. Market Share: Companies believe it’s a zero-sum game with limited resources.
  2. Profit Maximization: Hiding and siloing information is seen as a way to maximize profit, even at the expense of others.
  3. Competitive Advantage: Innovation is hoarded to maintain a perceived advantage.
  4. Customer Loyalty: Companies aim for monopolies through brand recognition, often withholding products, knowledge, and innovation.
  5. Resource Scarcity: Uneven resource distribution due to siloing.
  6. Strategic Positioning: Companies position themselves strategically under economic pressure.
  7. Investor Expectations: The focus is on rapid growth and consumption to satisfy investor demands, leading to a system that protects itself.

What Healthy Competition Looks Like

Healthy competition is beneficial when it encourages improvement in customer service, delivery, approach, and relationship-building. It’s detrimental when innovation is withheld, harming workers, foremen, tradespeople, and the industry as a whole. We should emulate models like Toyota, where sharing and openness are encouraged to foster industry-wide improvement.

The Key to Eliminating Unhealthy & Toxic Competition

Unhealthy, toxic competition might seem beneficial to individual companies, but it hurts the industry. Here’s the secret: we don’t win as construction companies unless we win together. We need to start sharing, networking, and helping each other. Here’s how:

  1. Invest Together: Form joint ventures and partnerships to leverage shared resources and wisdom.
  2. Learn Together: Make information free and accessible. Share systems, tools, templates, and knowledge to raise the industry standard.
  3. Share & Train Together: Elevate each other by sharing best practices and training collaboratively.

 

Negative Effects of Toxic Competition in Construction

  1. Quality Degradation: Shortcuts are taken, leading to diminished quality.
  2. Unethical Practices: This includes false advertising, price fixing, intellectual property theft, and unfair labor practices.
  3. Short-term Cost Cutting: Training, systems, and processes suffer, harming overall quality and productivity.
  4. Employee Exploitation: Workers face low wages, poor conditions, and excessive demands.
  5. Customer Mistrust: Layers of bureaucracy increase, wasting time and reducing productivity.
  6. Innovation Stagnation: Price wars reduce investment in R&D, hindering overall progress.
  7. Economic Instability: Toxic competition leads to lower profitability, layoffs, and bankruptcies.
  8. Environmental Damage and Legal Backlash: Harmful practices lead to tighter regulations and less productivity.

How We Can Invest, Learn, Share, and Train Together to Eliminate Toxic Competition

To foster a healthier industry, we should:

  1. Invest Together: Form joint ventures and partnerships, focusing on industry-positive trends and technologies.
  2. Learn Together: Make information free and accessible, sharing solutions and innovations openly.
  3. Share Together: Spread best practices, tools, and templates to raise the industry standard.
  4. Train Together: Collaboratively train and elevate each other, ensuring fair competition based on service and relationships.

The construction industry’s hidden problem is that we’re all siloed and not sharing, keeping the industry in the dark ages. We need to fix this together if we are ever to match the productivity gains seen in manufacturing.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

8 Types Of Waste In Lean Construction

Posted on by Nicolas M.

Introduction

In Lean construction, identifying and eliminating waste is crucial for achieving operational excellence. Here, we’ll explore the eight types of waste, how they impact construction projects, and provide actionable tips for reducing or eliminating them. 

The Eight Types of Waste

  1. Overproduction: Creating more of a product than needed. This leads to excess inventory and can result in defects, damage, or the need to move unnecessary materials.
  2. Excess Inventory: Holding more materials than necessary. This can cause damage, require additional storage, and lead to further waste such as motion and transportation.
  3. Motion: Excessive movement of people or equipment due to overproduction and excess inventory, increasing the risk of injuries and inefficiencies.
  4. Transportation: Unnecessary transport of materials or products. Overproduction leads to moving items to and from storage, increasing the likelihood of defects.
  5. Defects: Flaws in products or materials caused by overproduction and mishandling, requiring rework or repair, which consumes additional resources.
  6. Overprocessing: Performing more work than required to meet customer needs, often as a result of fixing defects. This leads to wasted effort and resources.
  7. Waiting: Delays caused by overprocessing and defects. This can involve workers waiting for materials or tasks to be completed, leading to project slowdowns.
  8. Underutilized Talent: Failing to leverage the skills and knowledge of the team. Utilizing the team’s collective genius can prevent other wastes from occurring.

Impact on Construction Projects

Understanding and addressing these wastes are essential for streamlining operations and enhancing productivity. Each type of waste adds unnecessary time, cost, and effort to a project, hampering its success.

Tips for Reducing or Eliminating Waste

  1. Three S System (Sort, Straighten, Sweep/Shine):
    • Sort: Remove unnecessary items from the workspace.
    • Straighten: Organize essential items for easy access.
    • Sweep/Shine: Clean and maintain the workspace to identify waste quickly.
  2. Five S System:
    • Sort
    • Straighten
    • Sweep/Shine
    • Standardize: Establish consistent practices.
    • Sustain: Maintain and review standards regularly.
  3. Engage the Team:
    • Educate everyone about the eight types of waste.
    • Encourage team members to identify and report waste.
    • Use visual tools, like laminated cards, to keep waste types top of mind.

Creating a Culture of Continuous Improvement

Adopting Lean principles and regularly practicing the Three S or Five S system fosters a culture of continuous improvement. Teams become more efficient, project flow improves, and operational excellence becomes achievable.

Conclusion

By recognizing and eliminating the eight types of waste in Lean construction, you can significantly improve project outcomes. Implementing structured systems like the Three S and Five S methods, and engaging your team, will pave the way for a more efficient and successful construction process.

Helpful Resources

For further guidance, download the formatted Canva graphic provided, which outlines the Five S system and the eight types of waste. Distribute these resources to your team to reinforce Lean practices and support your journey towards continuous improvement.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

What Are The Best Team Building Activities For Work?

Posted on by Nicolas M.

When we talk about team building, people often ask for practical activities they can implement immediately to build their team. We’re going to share these right away, including a key strategy to bring positivity back into the team. Let’s dive in. 

Importance of Building a Team

Building a team is crucial because everything starts with it. Whether it’s starting a project, doing a homework assignment, or even in a crisis, having a team is fundamental. While it’s easy to be good individually, it’s challenging to be good together, and being good together is essential for achieving big things. Here are some tips and tricks to build a strong team.

How to Get People to Like Each Other

To get people to work well together, they need to like each other. Here are some remarkable points:

  1. Similarity: People like those who are similar to them.
  2. Familiarity: People like those they know.
  3. Proximity: People like those they are near.
  4. Trust: People like those they trust.

Knowing each other is the first step to discovering similarities, which fosters liking and trust. Removing barriers, working closely, and spending time together are crucial. Here are some exercises to build these connections.

How to Do the Positive Comments Exercise

This exercise involves the team standing in a circle, where each person gives a positive comment to the person next to them. For example, you might say to John, “I really notice that you are always supportive and care about the team. I respect you and want to say thank you.” This exercise helps people realize how highly they are thought of, fostering connection and trust within the team.

How to Connect with Your Team by Sharing Personal Histories

Inspired by Patrick Lencioni, this exercise involves sharing relevant personal histories in a group setting. Each person shares something about their background that helps others understand them better. For example, a project manager who is strict with finances might share a personal story about witnessing financial struggles in his family, helping the team understand his behavior better and reducing friction.

Benefits of Doing Hard Things with Your Team

Teams grow stronger by tackling hard tasks together. This can be work-related or through activities like rock climbing or obstacle courses. Doing difficult things together reduces internal friction and builds reliance on one another.

Benefits of Spending Time Together as a Team

Spending time together, even in informal settings like lunch, helps build relationships. For example, a project manager and superintendent who didn’t get along improved their relationship by having weekly lunches, eventually building trust and working better together.

5 Key Behaviors & 4 Stages of a Team

Successful teams exhibit five key behaviors:

  1. Building Trust
  2. Engaging in Healthy Conflict
  3. Making Decisions Together
  4. Holding Each Other Accountable
  5. Performing Well Together

Teams go through four stages:

  1. Forming: Coming together.
  2. Storming: Experiencing friction.
  3. Norming: Starting to synchronize.
  4. Performing: Achieving high performance.

In the storming phase, team building activities are essential to pull the team together. As the team moves to the norming phase, they start trusting and following each other more, and in the performing stage, they focus on the goal rather than just the leader.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

How Long Does It Take To Train A New Employee?

Posted on by Nicolas M.

How long does it take to train a new employee? In this Blog, you’ll discover exactly how long it takes, the keys to their training, and a forgotten training method essential for proper training. Stay with us to find out more. 

What to Remember as a Project Management Leader

For those in project management roles—whether you’re a superintendent, assistant, director, owner, or foreman—understand that if you’re skilled, you’ve received significant training, even if you don’t remember it all. Many of us mistakenly think we figured things out on our own, but in reality, we had mentors, training programs, and hands-on experience over many years.

The Forgotten Training Method

Historically, even when training environments were tough and sometimes harsh, training was thorough. With today’s emphasis on professional and psychologically safe environments, there’s a risk of not training adequately. The challenge now is to train effectively while maintaining these positive environments.

The Key to Employee Training for Different Positions

Field Engineer/Project Engineer: Minimum 1.5 years
Superintendent/PM: Minimum 6 years (used to be 12)
General Superintendent/Director: Minimum 12 years

To achieve these durations, trainees must go through builder positions. Builder roles provide hands-on experience essential for understanding the full scope of construction projects.

Importance of Builder Experience

Builder roles like foreman or worker focus on specific tasks, whereas roles like superintendent or PM require planning, scheduling, and risk management skills. A year and a half as a field engineer provides the necessary broad perspective by working on various tasks and trades, making it a vital step in training.

Interpersonal Skills

Working through people is crucial, as 80% of construction work involves interpersonal interactions. Key resources include:

  • “How to Win Friends and Influence People”
  • “Leadership and Self-Deception”
  • Courses by Simon Sinek and Brene Brown

Leadership Skills

Leadership is vital for creating a positive work environment and building a cohesive team. Recommended resources include:

  • Tony Robbins courses
  • Rapport Leadership International
  • Various leadership books

Technical Skills

Technical proficiency is essential. Learn tools and software such as:

  • AutoCAD
  • Revit
  • Project management software
  • Google SketchUp
  • Scheduling and RFI processes

Key Things to Do When Training New Employees

  1. Alignment with Core Values: Trainees must align with the company’s core values to be a good fit.
  2. Delivering Outcomes: Skills and experience are important, but delivering project outcomes is crucial. This includes maintaining clean, safe, and organized projects.
  3. Good Project Experiences: New employees must have at least two good project experiences before taking on their own projects. Good experiences are essential for replicating successful outcomes.

Conclusion

To properly train someone, ensure they have skills, leadership qualities, and align with core values. They must also deliver outcomes and have good project experiences.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

How Do Leaders Create Clarity?

Posted on by Nicolas M.

Creating clarity is crucial for effective leadership and organizational success. This Blog discusses how leaders can achieve this, avoiding common pitfalls, and ensuring a unified direction. Here’s a detailed breakdown of the process:

Importance of Clarity

  • Vision and Direction: Leaders must clearly articulate what the organization aims to accomplish and its direction. This overarching vision prevents chaos and ensures everyone is aligned.
  • Avoiding Abdication: Some leaders mistakenly believe giving no direction fosters innovation. This results in confusion and lack of coordinated effort. Providing clear goals does not hinder autonomy but enhances it by giving teams a framework within which they can innovate.

Key Concept

  • Accomplishments Over Instructions: Leaders should focus on what needs to be accomplished rather than detailing how to do it. This empowers teams to collaborate and find the best ways to achieve the goals.

Steps to Create Clarity

  1. Build the Leadership Team: Assemble a team with the right people in the right roles, removing those who do not fit.
  2. Create a Clarity Document: This document should include the organization’s vision, mission, purpose, core values, one-year, three-year, and ten-year targets, target market, thematic goals, and specific goals.
  3. Communicate the Clarity: Use multiple methods (speeches, memos, videos, etc.) to ensure everyone understands the vision and goals. Communication should be repeated multiple times to ensure it is deeply ingrained.
  4. Reinforce Clarity with Human Systems: Align hiring, firing, promotions, and resource allocation with the clarity document. Regularly check that all actions and decisions support the organization’s goals.

Tools and Techniques

  • Patrick Lencioni’s Four Quadrants:
    • Build the team.
    • Create clarity.
    • Communicate clarity.
    • Reinforce clarity.
  • Impact Filter by Dan Sullivan: For individual or departmental tasks, outline the purpose, best and worst results, and conditions of satisfaction to ensure clarity in assignments.

Continuous Reinforcement

  • Repeat the Message: Leaders should communicate the vision and goals multiple times (seven times recommended) to ensure the message is understood and internalized by all.
  • Monitor and Adjust: Regularly review and adjust goals and efforts to keep everyone aligned and motivated.

Conclusion

Clarity is essential for preventing wasted time, energy, and resources. By clearly defining and communicating the organization’s direction, leaders can ensure that all members are aligned and working towards common goals. This structured approach fosters a productive and innovative environment, ultimately driving the organization to success.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!

What Does A Director Of Operational Excellence Do?

Posted on by Nicolas M.

What does a Director of Operational Excellence do in construction? I often get this question, and I’m telling you, there’s a fantastic answer that you’ll want to learn about in this blog post.

Why is this role so important? What are the main focuses of this role? And are there resources out there to help those in this role? These are the questions we’ll explore right now. Let’s begin by getting the general job description out of the way and then dive into some really important concepts. 

What Does a Director of Operational Excellence Do?

A Director of Operational Excellence sets the vision for department priorities, partners with leadership for long-term planning, acts in an advisory role, maintains an overall master program schedule, develops the annual report, recruits and onboards needed resources, leads quality and compliance programs, often oversees contract administration efforts, oversees budgets, creates and implements improvement efforts for the overall organization, streamlines communication, supports professional growth, and coaches and mentors direct reports. This is a comprehensive list you might find in any job search for this role. However, let’s dig deeper.

Operational Excellence: A Deeper Dive

To truly excel in this role, it’s essential to understand what operational excellence means. At its core, operational excellence is about delivering a product to the customer with the shortest overall duration, at the lowest overall project cost, with the highest amount of value and quality. As Niklas Modig explains in his book This is Lean, the goal is not to optimize departments in isolation but to create a flow-efficient organization.

Creating Flow Efficiency

A Director of Operational Excellence seeks to create flow from the inception of a project to its delivery to the customer. This involves reducing waste and adding maximum value. Instead of optimizing individual departments, the focus is on creating seamless processes that enhance overall efficiency.

Helpful Resources for Improving Operational Excellence

If you’re aspiring to become a Director of Operational Excellence, I highly recommend checking out the book This Is Lean. Additionally, Niklas Modig’s company, Hups, offers courses specifically on creating customer value and implementing operational excellence. These resources provide valuable insights and practical training for your role.

Importance of Business Knowledge

Directors of Operational Excellence must have a solid understanding of business principles. Familiarize yourself with the works of Jim Collins, Gino Wickman, Patrick Lencioni, and Dan Sullivan. Their books and concepts on leadership, team building, and business systems are crucial for creating flow efficiency within your organization.

Understanding the Product and Deliverables

It’s important to have a high-level understanding of the product and how it delivers value to the customer. Know what the customer wants and align your efforts to meet those needs. This understanding will guide all organizational efforts toward delivering customer value and achieving desired results.

Knowing the People in Your Organization

Connect with the people in your organization. Visit different departments and ask, “What would it take to create trust with you and partner with you?” Understanding the needs and perspectives of your team members will help you orchestrate efforts to create flow efficiency.

Analyzing the Flow of Your Business

Identify your flow unit – whether it’s a construction project, a manufacturing product, or another deliverable. Map out the process from customer request to delivery, identifying value-added and non-value-added activities. Eliminate unnecessary steps and streamline processes to reduce waste and improve efficiency.

Key Steps for Directors of Operational Excellence

  1. Coach the Leadership Team: Build a strong leadership team, create clarity, communicate that clarity, and reinforce it through human systems. An organization cannot be excellent without an excellent leadership team.
  2. Strategy Deployment: Develop a clear business strategy, including short-term and long-term goals. Ensure everyone in the organization knows their role in achieving these goals.
  3. Understand Available Activities and Resources: Be aware of the resources, education, and activities at your disposal. Connect these resources to customer value.
  4. Know Your Channels for Delivering Customer Value: Understand the customer experience from start to finish. Ensure that every interaction and process is remarkable, not just the end product.
  5. Maintain Alignment with Your Company’s Value Propositions: Regularly analyze whether your organization is delivering on its value propositions. Aim to create raving fans, not just satisfied customers.

Conclusion

As the Director of Operational Excellence, your role is to ensure that the value chain to the customer is unbroken and that value flows efficiently through the organization. This is what makes operations excellent and ensures customer satisfaction.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

On we go!