LEAN Methods Improve Project Metrics
As a general contractor, so much of our final product depends on the quality of the deliverables from our trade partners. In order to deliver a superior product, a method of performance measurement is the key to holding all of us accountable. To help with the trade partner selection process and to monitor our due diligence, we have identified a number of project management metrics to track with the intention of becoming more efficient in our processes. One of the LEAN construction metrics we have implemented is “First Pass Yield” for submittals.
First Pass Yield (FPY), also known as First Time Yield or Throughput Yield, is calculated from the yields of each individual process without re-work (first pass). FPY is calculated by dividing the units entering the process, minus the defective units (regardless of whether they were discarded or fixed), by the total number of units entering the process. Many measures of productivity and efficiency fail to account for the cost of rework, and rework can consume a significant portion of value of the process in question.
To calculate first pass yield for the submittal process, first we collect the following data:
- The number of submittals/resubmittals received from trade partners and returned to trade partners for correction prior to submission to the Design Team
- The total number of submittals sent to the Design Team
- The number of submittals sent to the Design Team and approved on first submission
- The number of resubmittals sent to the Design Team
The purpose of this process is to demonstrate the due diligence Tocci performs in reviewing submittals, which can be used to show the Client/Design Team that we do not pass along information without examining it first. Further, this is an objective measurement that can be fed back into the trade partner prequalification system to identify trade partners who meet Tocci’s performance standards.
Rework causes a great deal of unnecessary administrative time for all parties involved. By implementing this process, we will further ensure all project specification and drawings are carefully reviewed and the scope is comprehensive resulting in reduction to the number of change orders. Metrics such as these can be included as performance standards in contracts with trade partners. These standards can have a trickle down affect across the industry elevating the level of performance expected from all trade partners similar to the standards Toyota placed on the automotive industry through their LEAN manufacturing methods.
This data provides insight for us as it highlights potential inefficiencies, which we can then improve upon through the implementation of more LEAN processes. This is only one of many data collection metrics that Tocci is using. Stay tuned for more performance improvement initiatives in future blogs!