Project Manpower Management: Management Processes in Construction Practice

Nature Release

PROJECT MANPOWER MANAGEMENT

Project Manpower Management Management Processes in Construction Practice

S. D. Anderson Fluor Engineers and Constructors, Inc.

R. W Woodhead University of New South Wales

A WILEY-INTERSCIENCE PUBLICATION

JOHN WILEY & SONS

New York

Chichester

Brisbane

Toronto

Copyright O 1981 by John Wiley &Sons. Inc. All rights reserved. Published simultaneously in Canada. Reproduction or translation of any part of this work beyond that permitted by Sections 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. Library of Congress Cataloging in Publication Data: Anderson, Stuart D Project manpower management. "A Wiley-Interscience publication." Includes index. 1. Construction industry-Management. 2. Industrial project management. 3. Work groups. I. Woodhead, Ronald W., joint author. 11. Title. HD9715.A2A52 62C.068 ISBN 0-471-95979-0

80-22090

Printed in the United States of America

Preface This book is concerned with the construction industry's approach to project manpower management. The project manpower management area is viewed at two levels: the personal face-to-face management of small work groups such as construction crews; and the impersonal management of groups of people such as the field work force, design groups, and project teams. The book specifically focuses on the management processes associated with the planning, scheduling, enumerating, and performance monitoring of the personal and impersonal aspects of project manpower. The book does not consider in detail the human behavioral aspects of individuals, personal management styles, or the organizational behavior of trade union groups beyond referencing the effect each of these areas has on personal and impersonal manpower management. The book introduces a new approach to the description and understanding of management processes currently found in practice in the construction industry. This new approach is based on a consideration of decision processes in relation to project team organizational structure, management roles, policies, and decision making systems associated with the small, medium-sized, and large construction firms. A basic set of manpower management functions is presented and is used to portray the various decision processes and the roles performed by individual decision makers. In addition, the consideration of the progressive development of the project team organizational structure in response to the increasing management effort in solving the problems raised by the physical separation between the head office and construction site gives an interesting insight into project management concepts. The management function approach together with a focus on decision processes and manager/supervisor roles, as developed in the book, establishes the framework methodology for viewing management in action. This methodology is used to describe four basic manpower management approaches in the project management area of the construction industry. It is further used to gain an understanding of the organizational behavior of the project management team especially in relation to the prevailing construction environment and the modus operandi of the construction company. Finally, the individual role of the manager/supervisor in the management team is established in terms of the management functions he or she performs and the decision processes in which he or she is involved. Thus the approach enables both head office and field management personnel to gain a deep understanding of the modus operandi of manage-

Preface

ment and decision making in construction from the very largest to the smallest of construction firms. A considerable amount of practical information is introduced into the text. This material emerges whenever the methodology is brought to bear on current management practice in construction. Thus the approach developed in the book portrays a variety of management attitudes to project manpower management in terms of operational policies, the range and depth of management functions addressed, and the management roles (job descriptions) played by key decision makers. In this way, the material covered has an appeal to both the professional and the student. The book has been designed to be self-contained. However, the concepts developed have different levels of focus and potential applications for the reader. This approach provides the reader with the option to select those subjects within the text that most closely correspond to his or her interest, background, and professional experience. Thus the book has multiple entry points from which the reader may embark. Although the material can be simply read, it has rigor, and there are chapters and sections of the book that require careful study to gain a full and comprehensive understanding of the concepts and subject matter presented. The reader should carefully peruse and gain a basic understanding of the scope of project manpower management (Chapter 1) and the methodology that is developed to describe project manpower management in construction practice (Chapters 2, 3, and 4). A grasp of these concepts will then assist the reader in selecting the entry point of interest. The multiple entry facet of the book broadens its application and use for both the professional and the student reader. For example, a reader with a professional interest in project management concepts currently employed in construction practice can study the project team structures associated with the small, medium-sized, and large firms (Chapters 5 through 9). If a professional manager is specifically interested in operating policies of construction firms of various modus operandi, he or she should read and study in detail those chapters that expose the management attitudes and policies of various-sized construction firms (Chapters 10 through 14). The book further provides the professional manager with a methodology that can be used to analyze the management roles of decision makers in various construction management environments (Chapters 6 through 9 and Chapter 15). Finally, the construction professional can compare the project management approach of his or her firm with that of another firm by contrasting the project team structures, policies, and decision processes of a firm operating in a different environment (e.g., small firm versus medium-sized firm). While the book presents many management concepts of interest to the experienced professional, it can also be utilized by the student reader as a reference source on project management in construction practice. The book can enhance the student's understanding of management processes in construction, the changing management roles of various decision makers as project size and complexity change, and the different modes of operation of construction firms as characterized by a firm's policies and decision processes.

We would like to thank the many individuals from the construction industry who have contributed to the development of this book and who have provided critical and constructive comment throughout its writing. We specifically thank Dick Foley of Felmley-Dickerson Company, Bill Kuhne of Kuhne-Simmons, Mortan Crane of Crane Construction Company, Inc., Illinois, Bill Petraglia of Proctor and Gamble, Cincinnati, and Robert Nebel of Brown & Root, Houston, for their many helpful suggestions. Finally, we are deeply indebted to E. Caterson, whose dedicated typing of the manuscript and management of correspondence between Australia, South Africa, and the United States made the book a reality.

Huntington Beach, California Kensington, Australia September I980

Contents CHAPTER 1

Project Manpower: A New Approach to a Management Problem

1

1.1 What Is Manpower Management? 1 1.2 Project Management Goals 5 1.3 Molding Pressures in the Project Management Environment 7 1.4 Methodology for Project Manpower Management 8 1.5 Manpower Management Approaches in Practice 10

CHAPTER 2

A Functional Approach to Manpower Management 2.1 General Management Functions 13 2.2 Dissection Framework for Management Functions 14 2.3 The Basic Building Block Functions 20

CHAPTER 3

The Elements of a Decision Process 3.1 3.2 3.3 3.4

CHAPTER 4

The Portrayal of Management Roles 4.1 4.2 4.3 4.4

CHAPTER 5

Management Functions 24 Decision Processes 26 Portrayal of a Decision Process 28 Example of a Decision Process: Estimate Preparation 30

The Management Role of an Individual Manager 38 The Functional Plot 38 Organizational Concepts 40 Portrayal of Project Team Management Roles 47

Project Team Concepts 5.1 5.2 5.3 5.4

Project Team Components 52 The Traveling Project Manager 54 Field Based Project Management 59 Total Field Autonomy 62

37

Contents

CHAPTER 6

The Project Team Structure: The Components 6.1 6.2 6.3 6.4

6.5 CHAPTER 7

7.5

8

8.5

9

9.5

CHAPTER 11

The Construction Environment 141 Organizational Structure: Total Field Autonomy 143 The Project Team: Total Field Autonomy 145 Manpower Management Functions: Total Field Autonomy 151 Management Roles in Manpower Management: Total Field Autonomy 154

Policies: The Portrayal of Management Attitude 10.1 10.2 10.3

110

Thc Large Firm Environment 111 Organizational Structure of the Large Firm 114 The Project Team 121 Manpower Management Functions at the Large Firm Level 127 Management Roles in Manpower Management 130

The Project Team Structure: Total Field Autonomy 9.1 9.2 9.3 9.4

CHAPTER 10

The Medium-Sized Firm Environment 86 Organizational Structure of the Medium-Sized-Firm 90 The Projcct Team 94 Manpower Management Functions at the Medium-Sized Firm Level 9 9 Management Roles in Manpower Management 102

The Project Team Structure: Field Based Project Management 8.1 8.2 8.3 8.4

CHAPTER

The Small Firm Environment 66 Organizational Structure of the Small Firm 69 The Project Team 73 Manpower Management Functions at the Small Firm Level 77 Managemcnt Roles in Manpower Management 80

The Project Team Structure: The Traveling Project Manager 7.1 7.2 7.3 7.4

CHAPTER

65

Policy Formulation 159 The Function-Policy Plot 160 The Portrayal of Policies 163

Management Attitudes: Policies of the Small Firm 11.1 Policies of the Small Firm 166 11.2 Management Attitudes of the Small Firm 167 11.3 Small Firm Policy Plots 169

139

Contents

CHAPTER 1 2

Management Attitudes: Policies of the Medium-Sized Firm 12.1 12.2 12.3

CHAPTER 13

Medium-Sized Firm Policy Plots 180

Management Attitudes: Policies of the Large Firm 13.1 13.2 13.3

CHAPTER 1 4

Policies of the Medium-Sized Firm 173 Management Attitudes of the Medium-Sized Firm 175

Policies of the Large Firm 182 Management Attitudes of the Large Firm 185 Large Firm Policy Plots 189

Management Attitudes: Policies of the Autonomous Project Team 14.1 Policies of the Autonomous Project Team 194 14.2 Management Attitudes of the Autonomous Project Team 198 14.3 Autonomous Project Team Policy Plots 202

CHAPTER 15

Manpower Management Decision Processes 15.1 Manpower Management Decision Processes 207 15.2 The PTC Manpower Management Decision Process 213 15.3 The TPM Manpower Management Decision Process 218 15.4 The Field Based Project Management Decision Process 223 15.5 The Total Field Autonomy Decision Process 229

CHAPTER 16

Project Manpower Management: An Overview 16.1 16.2 16.3

APPENDIX

Changing Management Roles 233 Effective Project Team Management 237 The Portrayal of Management Processes 239

Project Manpower Management Functions A.1 A.2 A.3

Introduction 240 The Management Function 241 Project Manpower Management Functions 241

206

PROJECT MANPOWER MANAGEMENT

CHAPTER

1

Project Manpower: A New Approach to a Management Problem

1.1 WHAT IS MANPOWER MANAGEMENT?

Construction is the creative activity involved in transforming physical resources into a structure conceived as being useful. It is an inherently satisfying activity because people gain satisfaction from the productive application of their skills and efforts. This is especially true of work in the construction environment, where each project is unique, job locations vary so that factory conditions are nonexistent, and each worker, at whatever level, can see the result of personal effort and thereby can identify with the constructive endeavor. The effective and coherent development of any construction effort, however, requires the authority and decisive planning of a management team. Construction objectives are not achieved without directed effort. Field events and construction objectives do not happen by themselves but must be planned and striven for over a considerable period of time. Consequently, the effectiveness of field activity depends upon the skill and effort of the management team in the procurement and use of resources, and in its leadership and motivation of the workforce in the achievement of construction goals and objectives. In construction, as in any other enterprise, people are an indispensable resource. A person is, however, a very complex and often unpredictable being. It is not surprising, then, that management of people consumes a large proportion of the management effort on any construction project. This chapter introduces basic concepts of project manpower management and suggests a framework for viewing the project manpower management approaches that currently exist in the construction industry. The management of people as a human resource ranges over a wide spectrum: from that associated with the management and behavior of an individual, through the establishment and management of temporary work groups (such as crews and design or project team sections), to concern

A New Approach

with the entire project work force and to the relationships that exist and develop between management and organized labor. This wide range of human management concern can be readily divided into four major hierarchical areas: 1. 2. 3. 4.

Human relations Personal management of labor Impersonal management of labor Industrial relations

The hierarchical nature of these four human management areas reflects a progressive growth in the organizational ways in which people are managed while portraying a progressive loss of individual identity. Each of these four human management areas poses unique management problems that affect manpower management. To establish the scope of project manpower management addressed in this book, it is useful to elaborate each human management area in more detail so that a framework of reference can be established.

1. Human Relations. This most fundamental human management area is concerned, first, with those aspects of individual human behavior that relate to personality and skill level and the requirements of the work environment, and second, with the detection and resolution of issues that arise between individuals. At the individual worker level, this management area is concerned initially with the selection and hiring processes and the assessment of an individual's skills, past performance, attitudes toward work, and the manner in which the individual will fit into a close work environment with others. Once hired, management concern additionally focuses on the quality of the work produced and the extent to which the employee can be relied upon to work without constant supervision. At the individual manager level this management area is concerned initially with an assessment of the management potential of the individual, past managerial experience, and leadership qualities. Once established as a member of the management team, concern can be directed to improving the individual's management style so that harmonious and effective relations can develop between the manager and the workers under the manager's control. Finally, at this human management level, management concern should be directed to the improvement of motivational factors that strengthen attitudes toward work and with enhancing worker pride in the quality and performance of the work produced. 2. Personal Management of Labor. This human management area is concerned with the face-to-face contact and management of small work groups. It is here called the personal management of labor because the relevant field managers and supervisors should know the individual members of the work group by name, skill level, and reliability and should strive to develop a close rapport with the group as a whole.

What Is Manpower Management?

At the construction crew level this labor management area is concerned with the performance of all construction work, the attainment of acceptable productivity levels and work quality, and the development of harmonious work relations between the crew members and field supervisors. The critical areas requiring constant attention are the allocation of work assignments among the individual crew members that best matches their skills and level of performance, the development of efficient work patterns, and the consequent proper sizing of crews. 3. Impersonal Management of Labor. This human management area is concerned with the decision processes and management effort associated with the planning, scheduling, enumerating, and performance monitoring of large groups of personnel at the field work force, design group, and project management team levels. It can be considered as an impersonal management effort insofar as the individual identities of members are lost, and to the extent that group totals and overall performance indicators are considered in decision processes. At the field work force level, for example, management concern is directed to determining the labor content of a project, establishing desirable or attainable project manpower profiles, enumerating and scheduling the number of construction crews that will work the project, and the monitoring, recording, and general overall management of the total work force as a whole. 4. Industrial Relations. This human management area is concerned with the contractual and jurisdictional aspects of dealing with trades and organized labor groups, the availability of skilled labor, and the terms under which individuals are hired, paid, and worked. In the majority of construction projects industrial relations guidelines are negotiated and/or established before construction work begins. These guidelines thus become constraints under which all other human management areas operate. At the work force level, management concern focuses on the availability of skilled labor, the size of local labor pools, and the establishment of close relations with key representatives of organized labor groups and local hiring halls. In addition, management effort is directed to the resolution of restrictive work practices and jurisdictional issues that interrupt the otherwise orderly progression of work. At the crew level of labor management, concern is focused on the sizing of crews to meet industrial relations guidelines and on the issuing of work assignments that eliminate or minimize the occurrence of jurisdictional disputes. Each of the four human management areas presented above have been described, at least in broad outline form, in terms of areas of management concern. In addition, each human management area has been focused on representative construction management problems at the workface, crew, and project levels. Using these human management areas and descriptions as a frame of reference, it is possible to focus on a meaningful definition of project manpower management as addressed in this book. The scope of manpower management, as distinct from the manner in

A New Approach

which it is performed and organized, can be outlined in terms of the decision processes it addresses and by the techniques, documents, and information flows used by these decision processes. The project manpower management decision processes considered in this book cover both the personal and impersonal human management areas described above and are affected by both the human relations and industrial relations human management areas. The latter two human management areas will not be considered in this book in any detail beyond identifying ways in which they affect personal or impersonal manpower management. Using this approach, manpower management can be defined in terms of all the decision processes relating to:

1. The determination of the size of the project work force (whether field work force, design group, or field management team). 2. The acquisition of labor and control of the size of the project work force over the life of the project. 3. The structure and breakdown of the project work force into work groups such as crews and management sections. 4. The planning, scheduling, directing, and monitoring of manpower activity. 5. The sizing and composition of specific crews in relation to the work content of project activities and the work assignments to individual crew members. As indicated above, the scope of project manpower management can be presented in terms of the description and structuring of typical management decision processes. Collectively, the description and structuring of typical management decision processes for each of the above management areas, provides an extensive framework for viewing the scope of project manpower management. For such a framework to be useful for the portrayal of management processes, it is necessary to inject a focus on management roles, policies, and the impact of organizational structures on project manpower management processes and styles of management. Thus for example each decision process can be illustrated by describing the manner in which managers implement their decision processes through management techniques that are commonly used in practice. Similarly, a consideration of the organizational and management solutions to problems raised by the separation of project sitc and head office and the portrayal of the management roles adopted by the various project team members broadens the presentation of the manpower management area to the extent that a practical focus emerges. The scope of project manpower management addressed in this book is seen in terms of the management roles of key decision makers, the policies that guide them as they perform decision processes, and the organizational structures and management environment in which they operate. To provide a basis for such a viewpoint, it is necessary to understand the various management goals that relate to the project management area and the

Project Management Goals

1.2 PROJECT MANAGEMENT GOALS

pressures that mold the management environment. Once this is accomplished, a start can be made on the development of a methodological approach to project manpower management. The success of a construction company, as with any company, is measured in terms of the profit it earns. Since construction is project oriented, the ability to generate profit rests with the success of each project management team in its management of the construction project. The primary goal of project management, therefore, is to build an optimum facility with acceptable quality workmanship within a specified time frame and at an allowable cost (results achieved). If this primary goal is achieved, the project management effort will contribute to the profit of the company. At the project team level however project management success is achieved in many complementary ways: by the results achieved; by the quality of work performed; by the ability to anticipate and cope with problems; by the development of a highly coordinated and motivated team; by thc individual's pride and satisfaction in being involved with the project; and by the contribution from the efforts of the management team to the profit of the company. The primary project management goal is achieved through the effective utilization of five resources: machinery, material, manpower, money, and management. The latter resource, management, can be evaluated in terms of its collective skill, know-how, and effort. Of these five resources, manpower is often the most difficult to manage, because people are a complex and volatile resource. Cocsequently, prediction of manpower levels and productivity targets, together with monitoring and measuring work progress, presents a significant challenge to the project management team. In addition, construction and project progress can be achieved only through the attainment of effective man-hour effort and the meeting of scheduled milestone dates. Thus project management achievement depends on the successful obtainment of forecasted productivity and manpower levels. The successful outcome of a project also depends heavily on the skill, efficiency, and effectiveness of the management team; consequently, management know-how becomes a vital resource. This key management resource is often overlooked or taken for granted when assessing the project management team's utilization of the other resources. The ability to manage the five resources has a definite impact on the profit potential of any construction project. In terms of building construction and other types of projects associated with small and medium-sized construction firms, manpower is the only resource that is totally managed in the field. Material and machinery costs are more-or-less fixed on these types of projects, with some savings poqsihle through timely purchases and payments or the effective and efficient use of construction equipment. Cash flow analysis can assist in the attainment of profit by the prevention of liquidity problems and the reduction of interest costs through timely payments. In many cases, the competitive edge in building construction goes to the company that can generate profit through successful manpower management techniques. The labor dollar content of a project in the small to medium-sized firm

A New Approach

construction environment is significant enough that effective manpower management can reduce labor costs and thereby increase profits for the company. Furthermore, the size of thc direct field labor force in this environment is such that reducing crew sizes, even if by one worker, and the cultivating of more productive and motivated crcws through better management will reduce costs, increase profits, and more than compensate for the increased cost of applying improved management techniques. The primary objective remains to maximize profit, and effective manpower management provides a means of achieving this construction management goal. AS the construction environment expands into large firms and multimillion dollar projects, the importance and/or focus of the five resources changes, especially for industrial construction projects such as process or power plants. These projects, for example, normally require significant material control efforts both in the home office and in the field. Although construction manpower is also an important factor in the project management process, manpower is no longer the only field managed resource. Nonetheless, it is still a critical aspect of project management and a resource that can, if managed effectively, provide profit. Although the material and plant machinery cost component is a greater percentage of the total project cost, the labor cost component is still significant, mainly because the total cost of these projects is so high. Thus, substantial labor cost savings are possible through effective manpower management techniques, especially when direct field labor dollars are being expended at a level such as $500,000 or more a day. In the large project environment, predictions of manpower levels and productivities become more critical because of the size of the labor force. The magnitude of the labor force itself raises additional problems, such as keeping track of where people are working and in coordinating work so as to prevent wasted time. These types of problems and the magnitude of the management effort needed to control them inherently causes a significant growth in the size of the project management team. For this reason, management know-how becomes a critical resource, and the managerial skill of the project team members becomes an essential component for successful project management. The engineering, design, and construction project further compounds manpower management because of the large engineering and design task forces required for such projects. In this area of project costs, a considerable number of labor dollars are expended. Thus thc effective management of the management team itself is critical to successfully meeting allowable budgets. While successful management of manpower can lead to labor cost reductions, it also impacts progress, which has a direct influence on meeting specified project time frames or schedule completion dates. Since manpower is a vital aspect of achieving progress and scheduled target dates, predicting manpower levels, productivity, and other factors related to manpower assume greater importance. Meeting scheduled completion dates is just as critical as meeting allowable budgets, because if the facility is not available on time, the client/

Molding Pressures in the Project Management Environment

1.3 MOLDING PRESSURES IN THE PROJECT MANAGEMENT ENVIRONMENT

7

owner could suffer from lost product revenues. As projects grow in size, the revenue value of the facility grows as well. For example, meeting completion dates for large process or power plants could ensure revenue levels such as $1 million a day. At this level, effective manpower management becomes critically important. Effective project manpower management not only produces profit in terms of money, but also enhances company reputation by successfully completing projects on schedule. Therefore, management should be concerned with the project manpower management area as a fruitful area for management effort and should continually seek for better manpower management methods as a means of increasing profit and company business. A variety of management approaches to project management in general, and to project manpower management in particular, exists in practice. These different management approaches portray management solutions to the needs and pressures on project management produced by the construction and management environment of the client, the project, and the contractor. The existence of a variety of management approaches in construction practice is almost self-evident. The fragmentation of the construction industry, together with the large number of construction firms (over 800,000 contracting firms in the United States), ensures that a whole range of expertise, sophistication, and interest exists in the industry. Additionally, in the management area there are often many different ways of achieving the same desired result. However, a number of factors significantly reduce the number of different management approaches that can exist in practice. Examples are the occurrence of similar problems in the various phases of the construction process and the availability and general acceptance of specific management techniques that address these problems. An obvious molding pressure is inherent in the size of the required project work force itself. On the one hand, large projects located on congested sites requiring a large work force and many specialist crews will pose considerable manpower management problems and require and absorb considerable management effort. On the other hand, small, local projects with limited work forces may be worked and personally managed with several small crews only. Thus a wide range of management effort and manpower management focused techniques result from the broad spectrum of project type, size, and manpower management problems that exist on projects. Another significant ingredient molding thc management environment is the manner in which management solves the problems raised by the physical separation of the construction site from the head office. A variety of project management organizations have emerged in practice to address the problem. They reflect different management solutions to the manner in which a project is released to the field and in how field operations are to he managed and controlled. These different management approaches also reflect and embody management's assessment of what is an attainable level of field and project management control. In many cases current management approaches have been strongly

A New Approach

1.4

METHODOLOGY FOR PROJECT MANPOWER MANAGEMENT

molded by historical trends established decades ago and frozen into organizational structures, extant policies, ways of operating, and the views of traditional clients. Often, however, current approaches reflect management's interest in gaining a compctitive lead in the area and recognition by management that only by the constant development and improvement of management techniques will they succeed. Thus an insight into the flexibility of management can be gained by looking at the range of different project team structures that emerge within a construction company. The management experience and sophistication of the client can have a tremendous impact on the management approach of a contractor. If the client has extensive management experience, he may well demand an increased level of expertise and management effort from the contractor and in some cases insist on the continuous monitoring of, and even involvement in, the project management process. Thus the management focus of the client and the resultant need to supply extensive, detailed, and specific management reports often forces the contractor into the development of more sophisticated project management methods. Some contractors actively pursue the improvement of their professional management approach to project management as a means of gaining prestige and a continuation of projects. They strive to gain a reputation for finishing projects on time and within allowable costs while maximizing earned profit. These contractors are always seeking to establish better decision processes and management techniques. Their professional efforts ensure a wide range of sophistication in management approaches. As indicated above, a variety of molding pressures contribute toward the management environment surrounding a particular project. Some pressures are more important on a particular project than others; some have a direct impact on the management approach to a project while others have a less obvious influence. T o some extent they all affect the roles of individual manager/supervisors and the way in which overall project management goals are achieved. A consideration of management molding pressures is therefore essential to a full understanding of the specific management approach adopted by the contractor for each construction project. The following section introduces a methodological approach to project manpower management that establishes a framework within which the influence of these molding pressures can be considered. This section outlines a way of looking at, and describing, project manpower management. The manner in which this is done establishes a methodological approach to management processes in general. The elements of the proposed methodology are developed in the next three chapters and the methodology is illustrated in the remainder of this book when attention is focused on the various management approaches to project manpower management that exist in current practice. In developing such a methodology, there is a need:

1. To define and describe the functions that project manpower managers must perform.

Methodology for Project Manpower Management

2.

3.

9

To identify and structure the decision processes involved in project manpower management. To portray the different roles that managers and supervisors adopt in the making of decisions and in their implementation.

The methodology is built around a functional approach to the description of the scope of project manpower management and the manner in which management operates. A fundamental ingredient in this approach is the concept of a management function as a duty or task that has to be performed. A management function is both a responsibility of management and a request for performance. The management function is therefore a useful way of describing management in action. The success of the functional approach depends upon the effectiveness with which management functions are formulated and defined. A properly titled and focused management function can be both specific and generic. It is specific if the title leaves no doubt as to the scope and focus of the managcrnent effort required in its performance. I t is generic insofar as the function can be performed in a variety of ways, using management techniques of differing sophistication. The management function approach is also useful because it provides a common reference point for the description of both decision processes and the role of decision makers and supervisors in manpower management. The development of a comprehensive basic set of management functions suitable for the description of the project manpower management area is given in Chapter 2 . The next step in the methodological formulation of the project manpower management area is to describe the professional management of the area in terms of the types of problems to be considered and the decision processes that address these problems. In this way professional management is seen as the addressing and performance of a structured set of independent, or possibly interacting, decision processes. Each decision process can be formulated in terms of the management functions that need to be performed during the execution of the decision. These component management functions generate, manipulate, and present data and information relevant to the decision. Thus generic and stmctured functional formulations can be developed for each decision process. Each decision process can be formulated as a specific management information system by the introduction of document and information Bows and the enumeration of policies. In this way once specific management techniques and documents are prescribed for the manner in which each decision component function is to be performed, each decision process takes on the character of a completely defined and problem focused information system. The manner in which decision processes are structured as problem focused management information systems is presented in Chapter 3. The third and final stage in the methodological formulation of the project manpower management area is to describe the role of each manager or supervisor in each decision process in which he is involved. In this way,

A New Approach

the roles of individuals, and groups of individuals, in an organization can be established. In general, more than one person is involved in a decision process. Some gather data, others process data using specific techniques and documents, and still others may formulate constraining policies or make the final decision statement. The manner in which these people are involved in a decision process can be portrayed in terms of the functions in which they are involved and the manner in which they contribute to the performance of each management function. In this way the dynamic nature of personal involvement in each decision process, as well as in the organization as a whole, can be captured. The dynamic organizational structure that results for each decision process and for the project manpower management area as a whole need not, and often does not, correspond to the formal organizational structure of the construction company, project team, or the hierarchical location of the personnel involved. The manner in which the role of individual managers can be portrayed, and basic organizational concepts, are introduced in Chapter 4. The major portion of this book is directed to the description and illustration of typical manpower management approaches that exist in practice. Each manpower management approach is described in terms of: -

1.5 MANPOWER MANAGEMENT APPROACHES IN PRACTICE

~

1. The construction environment in which it emerges. The construction environment is seen as molding the general organizational structure of the contracting firm most commonly using the specific manpower management approach under consideration. 2. The organizational structure and character of the project team that emerges as a management solution to the separation problems of head office and field site management. 3. The range and scope of manpower management functions addressed. 4. The range and scope of manpower management decision processes addressed by the management approach and the policies under which those decisions are made. In this way typical management attitudes are illustrated in specific and quantifiable ways. 5. The different manager/supervisor roles that emerge for each management approach. The construction environment has been conveniently divided and related to those firms that produce construction companies at the typical small, medium-sized, and large firm levels. This convenient division also corresponds roughly to the growth in magnitude of both construction project size and complexity and the magnitude of the inherent manpower management problems. A developmental framework for the project team structure as management solutions of increasing focus and intent in project management is presented in Chapter 5. This staged development of the project team structure is used to illustrate the construction environment, organizational

Manpower Management Approaches in Practice

11

structure, manpower functions performed, and manager/supervisor roles for the small firm, project team components (Chapter 6 ) ; medium-sized firm, the traveling project manager (Chapter 7) ; and large firm, field based project management and total field autonomy (Chapters 8 and 9), respectively. This developmental concept of the project team strncture is readily related to an increasing sophistication in the management approach to project manpower management. The use of policies as a means of portraying management attitude is presented in Chapter 10 and illustrated with reference to the small firm (Chapter l l ) , medium-sized firm (Chapter 12), the field based project management approach of the large firm (Chapter 13), and the total field autonomy approach (Chapter 14). The identification and description of manpower management decision processes is presented in Chapter 15 and illustrated with reference to the functions performed and manager/supe~isor roles at the various firm levels in the later sections of that chapter. Finally, Chapter 16 presents an overview of the methodological approach to project manpower management developed in this book and relates the various manpower management approaches to the growth of specialist professional areas in project management and the benefits to be gained through the identification and adoption by management of the management approach most suited to the construction environment in which they operate.

CHAPTER

2

A Functional Approach to Manpower Management

Management manages people and resources through people and is consequently dominantly influenced by people. Management effort is especially influenced by the expertise and attitudes of the managers themselves. Thus the manner in which management performs its duties reveals the personal characteristic imprint of the management team itself while establishing its modus operandi. A considerable understanding of management's role in a project, its perception of attainable levels of resource management, and its attitude to labor can be gained from a study of its decision processes, policies, and the manner in which routine processes are performed. While most management effort is directed to performing routine processes, their continued use reveals management's implied consent and identification with the attitudes, standards, policies, and documents embodied in these formalized procedures. When facing new, or significant, problems, management must initiate and perform the relevant decision processes in arriving at and implementing a management decision. Thus at every step in the management process management attitudes, expertise, and procedures reveal the management approach of the project management team. This chapter is concerned with the identification and structuring of a basic set of project manpower management functions. These functions are obtained from a dissection of those general project management functions found relevant to the management of any project. In this way forty-six basic project manpower management functions are established. Each basic management function is described in terms of a precise functional scope statement and a statement of the background qualification and knowledge that the person performing the function must have in order to be competent enough to be entrusted with the performance of the function. Finally, each basic manpower management function is described in terms of the factors that must be considered during the performance of the function. Thus while each management function is described in a very

General Management

h I

I

:

unctions

2.1 GE ERAL MANAG MENT FUNCTIONS

13

detailed manner, each can be performed in a variety of ways that reflect the level of management sophistication that is available or thought requisite for their performance. Traditionally, management tasks have been divided into the broad functional areas of organizing, staffing, planning, directing, and controlling. These management functions are necessary for the management of any project and are referred to in this text as general management functions. This traditional broad dissection and sequencing of management functions corresponds naturally to project management requirements. Thus once management has been empowered to act, its initial efforts must be directed to organizing itself, deciding upon its scope of action, and formulating the policies under which it will act. When this has been accomplished, project management effort can be directed toward the completion of the project. The general management functions can therefore be broadly divided into two groups. The first group, organizing and staffing, is associated with establishing the project team, and the second group, planning, directing, monitoring and controlling, is associated with the activity of managing the project (i.e., project management). Figure 2.1 indicates schematically the relationship between these management functions and their functional groupings. The second group of general management functions (planning, directing, monitoring, and controlling) associated with project management are performed by the project team within the organizational structure adopted for the project.* The particular breakdown of these functions depends upon the nature of the project. That shown in Figure 2.2 dissects planning

ESTABLISHING THE PROJECT TEAM

ORGANIZE TEAM STRUCTURE: TEAM DEFINITION N U M B E R O F PROJECT TEAM M E M B E R S LINES OF COMMUNICATION JOB DESCRIPTION STAFF THE ORGANIZATIONAL STRUCTURE. TEAM DEVELOPMENT

MANAGING

T H E PROJECT

'

PROJECT MANAGEN IENT CONTROL

PoLlclEs S TR A TE G IE S

n WORK J~IRECTIVES

CONSTRAINTS

EFFORT

INFORMATION A N D D O C U ME N T nIY .F I--..

6

I

II I1

MONITOR EFFORT

Figure 2.1 Relationship between general management functions,

* For our purposes the second group of general management functions are of paramount interest in developing a basic structure for manpower oriented management functions. Accordingly, the consideration of the development and staffing aspects of a project management organization is deferred until Chapter 4.

.5

; i

,

.d,.

\*

y%h?r ',

4

PLAN

WORK

WHAT IS TO

WHEN WILL ACTION TO PLAN AND COMMIT HOW, AND IN RESOURCES RESOURCES WHAT O R D E R BE COMMITTED

BE DONE,

Figure 2.2

2.2 DISSECTION FRAMEWORK FOR MANAGEMENT FUNCTIONS

-.

& d

b

7

.$.

nctional Approach

MONITOR

WORK EFFORT WHAT IS CONSUMING BEING DONE RESOURCES BY WHOM

RECORD WHAT HAS B E E N DONE

General project management functions.

into two components, one of which is associated with planning what to do, the other with scheduling when to do it. Similarly, directing is dissected into the active allocation of staff and labor resources to a job and the subsequent directing of them in their work task activities. Finally, the control function has been associated with decision making based upon information gathered in the monitoring and recording of current project status and work progress, and with the consequential impact of decision making on the planning, scheduling, allocation, and work functions of the project effort. The six general project management functions (planning, scheduling, allocating, working, monitoring, and recording) introduced above are usually found relevant to any management undertaking. In construction management, especially for project management at the contractor level, these general project management functions demand considerable attention and account for most of the management effort expended on a project. The extent to which they must be considered and performed will depend on the nature of the management tasks involved and will correspondingly affect the organizational form and breakdown adopted for the management assignment. If the management requirements and work load focus in one or more of these functions are considerable, the typical management solution is to dissect each general project management function into a number of specialist functional areas that reflect the needs of the project and the expertise of the available project team members. In these cases the general project management functions can form the basis for a functional dissection of the management effort. Accordingly, considerable insight into contractor and project management organizations, project management decision processes, and job descriptions and managedsupervisor roles can be gained by viewing construction management from the general project management function point of view. T o achieve this objective, it is necessary to consider the dissection of the general management functions into those specialized component functions that are considered to best describe the modus operandi of the management effort under consideration. The six general project management functions (planning, scheduling, allocating, working, monitoring, and recording) show a progressive movement of management concern from the planning and enumeration of required resources to the commitment, use, and evaluation of the effective use of these -project resources. Fortuitously, the natural sequence of these functions corresponds to the general movement and relocation of management concern and effort from the head office environment (concerned with -

Dissection Framework for Management Fundions

15

planning and scheduling) to the field for work execution and then back to the head office environment (for final resource use assessment and related decision management efforts). This sequence of the general project management functions therefore provides an ideal dissection rationale for both resource use management and construction management purposes. Using these six general management functions as a frame of reference, further dissection can be made in a number of ways. It can reflect, for example, the decision hierarchy of the project team member involved, a focus on the different stages involved in the management process for individual resources (labor, material, equipment, finance, etc.), a specific decision process (say, bidding) associated with project management, the interaction of the project team members in each phase of project management, or the nature of information flow requirements for each decision process. Whatever dissection rationale is used, the result will be a twodimensional set of special purpose functions (grouped in one direction by the general project management functional areas, and in the other direction according to the chosen dissection rationale). Consider, for example, a dissection rationale for each general project management function based upon various management interests, spanning the construction hierarchy from the foreman (with a crew and workface focus on construction management) through the project management staff to a top-level executive manager (with a project staffing and overall project management concern focus). Such an overall approach may be found useful for locating, identifying, and sequencing the interaction and specific management roles of the personnel involved in project management. This dissection rationale exposes the different levels of management problems that each decision maker encounters. For instance, the superintendent/foreman is interested in crew sizing and in allocating a crew to an activity, whereas the project manager may be interested only in total project manpower over the duration of the project. At the field and workface levels in the management hierarchy the management functions would be dominantly personal management oriented (see Section 1 . 1 ) , whereas at the project management and top management levels the functions will be more impersonal management oriented (see Section 1 . 1 ) . Generally also at the project management level (depending upon the size of the project and management attitudes) there would be areas of overlap where some manpower management f~lnctions would have both a personal and impersonal management focus. A schematic layout of the dissection of general project management functions based on managerial hierarchy is shown in Figure 2.3. The personal and impersonal management of labor covers a broad spectrum of management functions over the managerial hierarchy. Consequently, each general project management function can be dissected into areas of focus up the managerial hierarchy. For example, dissection of the planning and scheduling functions could be focused on the decision processes, which span labor planning and scheduling problems at the workface and crew levels to project focused staff planning, estimating, and schedul-

A Functional Approach THE MANAGEMENT PROCESS G E N E R A L PROJECT M A N A G E M E N T FUNCTIONS PLAN-

SCHEDULE

>

+ ALLOCATE + W O R K + M O N l T O R + R E C O R D

Figure 2.3 Two-dimensional reference framework for the general project management functions.

ing problems at the head office level. Similarly, dissection of the allocation and work functions would have a labor involvement and action focus, which at the workface level is involved with the formation of crews and the assignment of work tasks to individual crew members, whereas further up the management hierarchy the functions would have an overall workforce management concern. Finally, dissection of the monitoring and recording functions would focus on the effectiveness of manpower involvement in the project, which at the workface level would involve site inspec-

THE MANAGEMENT PROCESS

G E N E R A L PROJECT MANAGEMENT FUNCTIONS

>

TOP MANAGEMENT I b

0 4

PROJECT MANAGEMENT STAFF

z Q

I u

CREW A N D WORKFACE MANAGERS

AND SUPERVISORS

Figure 2.4 Two-dimensional reference framework for project manpower management functions.

THE MANAGEMENT PROCESS GENERAL PROJECT MANAGEMENT FUNCTIONS PLAN

I

SCHEDULE

ESTIMATOR (Company Executive1

PROJECT MANAGER (Company Executive)

SUPERINTENDENT FOREMAN

c

PROJECT TEAM MEMBERS

Figure 2.5 The range and focus of project team member involvement in manpower management. (a) Small project. ( b ) Large project.

ALLOCATE

WORK

MONITOR

3 RECORD

THE MANAGEMENT PROCESS GENERAL PROJECT MANAGEMENT FUNCTIONS PLAN

EXEC. PROJ. MGR

COST ACCT.

SCHEDULE

ALLOCATE

ESTIMA T 0R

PROJ. MGR

FIELD ENGR

cds~ SCHED ENGR

GEN'L SUPER ASST. SUPERS

I FOREMAN




TOP MANAGEMENT A R E A

FUNCTIONS COVERED IN JOB DESCRIPTION FOR EMPLOYEE 1 ARE MORE MANAGEMENT ORIENTED

NUMBER O F LEVELS, INDICATION OF WORK VOLUME, A N D SPECIALIZATION

I I

'

iEMPLYEE w

ITTOM MANAGEMENT

+

/

LINE OF COMMAND FOR AUTHORITY AND COMMllNlCATlON

JOB DESCRIPTION FOR O Y E E 2 IS M O R E WORK

ORIENTED

+I-

INDICATION O F SPECIALIZATION

Figure 4.6

Organizational concepts: management and work oriented employees.

tionship is focused on a portion only of the management responsibility of the more management oriented employee, who may, for example, have other work oriented employees reporting to him in other functional areas. . The traditional line concept of management embodies delegation of authority from the highest executive in the organization to the employee who has least responsibility in the organizatiod and who has no authority over others. Delegation of authority must be such that line personnel have responsibilities cdmmensurate wtih their authority. The subordinate cannot be said to have responsibility if he does not have or take delegated authority. The definition of authority and responsibility in a manner designed to best use the abilities of each man is the essence of organization. As mentioned in the preceding section, functional plots do not explicitly indicate areas of responsibility or of delegated authority. As an indication of functional plots that exhibit the development of a departmental organizational structure and the establishment of multiple work teams, consider the set of manpower management functions associated with the decision process of estimating the labor content of a project. A functional plot of this professional area is shown in Figure 4.7a. If all these functions were performed by one person, his functional plot would correspond to the overall embracing contour of Figure 4.7~. If, however, these functions were performed by a chief estimator [who carries out CONSTRUCTION RECONNAISSANCE (PI ) and establishes the ACTIVITY BREAKOUT (P2) 1 and who is supported by two estimators, who perform the QUANTITY TAKE-OFF (P3) and LABOR ESTIMATION (P4) functions, then this figure could be dissected into several

Portrayal of Management Roles ESTIMATING FUNCTIONS

CHIEF ESTIMATOR

CONSTRUCTION RECONNAISSANCE

CONSTRUCTION RECONNAISSANCE

ACTIVITY DEFINITION

ACTIVITY DEFINITION

1

Q U A N TIT Y TAKE-OFF

ESTIMATE LABOR

~ u TAKEA N T I OFF Ty),

CONTENT

,I zANTIT TAKE-OFF

CONTENT

Figure 4.7 Development of organizational structure as a function of management and work loads. (a) Estimating functions. (b) Chief estimator. (c) Line organizational structure. (d) Functional plot line structure.

functional plots, as indicated by the dashed lines in Figure 4.7a. Notice in this case that the traditional line concept (as far as these manpower management functions are concerned) passes up to the chief estimator through a single functional area. These plots illustrate the typical management solution to a work overload situation in a particular functional area. As shown in Figure 4.7b, the common organizational solution is to set up multiple copies of the basic hierarchical work team, that is, to incorporate in the departmental structure of Figure 4.7a multiple sets of organizational components similar to that shown in Figure 4.7b. In this situation, the area manager can assign different segments of work to the various teams as project work load increases and as work volume decreases reassign individual teams to similar work on other projects. The basic hierarchical structure between management and technical or work oriented employees is further illustrated in Figure 4.7c, in terms of the traditional line structure for personnel involved in the estimating and bidding decision process. The line structure shown indicates increasing involvement in policy formulation and decision making, with personnel located up the management line and increasing work orientation in a narrowing technical field with personnel located down the management line. I n this case the functional plots for each member of the group could appear as shown in Figure 4.7d. Notice that this figure shows the functional plot of the assistant estimator (here working as a quantity surveyor)

Organizational Concepts INCREASING

POLICY FORMULATION AND DECISIONMAKING

ROLES

METHOD DETERMINATION DIRECT AND INDIRECT COST EVALUATIONS

ESTIMATOR

QUANTITY

DETAILS

TECHNICAL

FUNCTIONS

NARROWING

TECHNICAL FIELD

(c)

ESTIMATOR CONSTRUCTION

/ ESTIMATOR \ P2

ACTIVITY DEFINITION

TAKE-OFF

'------

u ESTIMATE LABOR CONTENT

Figure 4.7

(continued)

c o m p l e t e l y i m m e r s e d in t h e plot for t h e e s t i m a t o r . N o s p e c i a l s i g n i f i c a n c e n e e d b e a t t a c h e d to t h i s r e p r e s e n t a t i o n o t h e r t h a n t h a t t h e e s t i m a t o r d o e s not p e r f o r m quantity take- off. I n any case, t h e f u n c t i o n a l plot for t h e e s t i m a t o r c o u l d r e a d i l y b e drawn in a m a n n e r that d o e s not e m b r a c e t h a t for t h e a s s i s t a n t e s t i m a t o r (see, for e x a m p l e , t h e d a s h e d - l i n e c o r r e c t i o n to F i g u r e 4.74 F i g u r e 4.8 i l l u s t r a t e s t h e f u n c t i o n a l p l o t s of f i e l d p e r s o n n e l in a common f i e l d s i t u a t i o n . T h e p r o j e c t m a n a g e r h a s d i r e c t l i n e a u t h o r i t y o v e r the s c h e d u l i n g e n g i n e e r and t h e c o s t a c c o u n t a n t . T h e p r o j e c t m a n a g e r h a s

.*

* The perceptive reader may suggest that the relative position of the QUANTITY TAKE-OFF (P3) and LABOR ESTIMATION (P4) functions be reversed to give simple hierarchical plots for the chief estimator, estimator, and assistant estimator. That this is not done reflects the general order of these functions in the estimate preparation decision process.

Portrayal of Management Roles PROJECT MANAGER A1

ALLOCATE OFFICE, ENGINE E R I N G . AND D E S I G N STAFF A2 ALLOCATE F I E L D STAFF A3 DETERMINE

TRADE MANPOWER PROFILES

I I I

HEAD OFFICE ADMINISTRATIVE LINE I

W1 RELEASE STAFF TO PROJECT

W2 PRE-JOB LABOR CONFERENCE

CURRENT PROJECT

W3

W O R K FORCE MANAGEMENT

I

I

1

I

SUMMARY

I I1

LINE

I

I

I

I

I SCHEDULING

COST A CCO UN T A NT

CONSTRUCTION SEQUENCE

HEAD OFFICE ADMINISTRATIVE LINE

i

CURRENT PROJECT STATUS

GENERATE LABOR MANAGEMENT DATA

PROJECT FORECAST

PROJECT COST ACCOUNTING

ESTABLISH

CONSTRUCTION SCHEDULE DEFINE CURRENT PROJECT STATUS REVISE CONSTRUCTION

Figure 4.8 Development of organizational structure: individual functional areas report to superior manager.

delegated scheduling authority to the scheduling engineer and works with the cost accountant in the maintaining of CURRENT PROJECT STATUS REPORTS (M2). Both the scheduling engineer and the cost accountant, however, have administrative links with their head office managers. As shown, the functional plots portray the functions actually performed i n their areas of responsibility. Thus the by each member of the field breadth of the functional plot for the project manager does not extend into the scheduling set of management functions. If, however, the project manager is involved in the overall determination of the CONSTRUCTION SEQUENCE ( S l ) and ESTABLISHMENT OF T H E CONSTRUCTION SCHEDULE (S2), his functional plot must be enlarged to include these functions. The cost accountant reports to the project manager and works with him on the MONITORING OF PROJECT STATUS (M2) and is charged with several project labor recording functions. The functional plots of Figure 4.8 portray the elements of the project team structure in terms of both line and administratively linked plots and in delegated areas of professional performance and responsibility. As men-

;earn

Portrayal of Project Team Management Roles HEAD OFFICE COST ENGINEER

I I (

SUMMARY PROJECT REPORTS M2 CURRENT PRO J ECT STATUS

PROJECT MANAGER

I

7

/M?

1

S U MM A RY PR O J E C T REPORTS

C U R R E N T PROJECT STATUS DQnECCElnWAl

I

COST

/

1

ACCOUNTANT

ACTIVITY ANALYSIS

R5 LABOR

K R K PROGRESS

STAFF

T-

R6 QUANT IN PLACE

I

LABOR HOURS

GENERATE LABOR MANAGEMENT DATA

'-

PROJECT COST

uNTING)

Figure 4.9 Development of organizational structure. (a) Line and staff development. ( b ) Illustration of project and administrative line structure.

tioned in the preceding paragraph, these plots can be examined for organizational weaknesses (as, for example, the noninvolvement of the project manager in scheduling functions) as well as for accuracy. Finally, Figure 4.9 presents functional plots that illustrate the organizational development of line and staff functions for the labor cost control segment of a construction project. As indicated in Figure 4.9a, the field cost engineer is under the project line supervision of the project manager, receives staff assistance from a head office cost accountant, and has an administrative link with his professional supervisor, a head office cost engineer. Figure 4.9a presents the individual functional plots of each person, whereas Figure 4.9b indicates how the functional plots may appear on the Manpower Management Functions chart. The functional plot approach presents an effective method of portraying the various management roles of project team members. As demonstrated in Section 4.3, the functional plot approach provides a much deeper penetration into the roles of managers and supervisors than can be gained from the traditional line and staff organizational chart. The functional approach, -

4.4

PORTRAYAL OF PROJECT TEAM MANAGEMENT ROLES

~

Portrayal of Management Roles HEAD OFFICE COST ENGINEER

1 S UMMARY

PROJECT MANAGER

PROJECT

I

REPORTS

COST ACCOUNTANT

G E N E R A T E LABOR

MANAGEMENT DATA

PROJECT COST ACCOUNTING

1

PROGRESS

R5 LABOR PRODUCTIVITY R6 QUANTlTl ES IN PLACE

RESOURCE USE

R7 LABOR

LABOR ANALYSIS M6

HOURS

fb)

Figure 4.9

(continued)

however, when coupled with the traditional line and staff concept, can portray the dynamic nature of the management role of individuals in the project team organization. In a broader sense, the management function plot concept of manpower management can provide the vehicle that enables a meaningful description of the company and project team organizational structure to be developed and analyzed. The various uses oE the functional plot to achieve this objective will be discussed in the following paragraphs. A functional plot for a project team member can be examined to judge the breadth and depth of his role in the project manpower management process. The plot will show quickly the number and types of functions that the individual performs. By viewing the plot in this manner, it is possible to judge if the individual is assigned too heavy or too light a work load. In addition, the functional plot of an individual will portray whether the individual's focus is specialized or spread over the broader spectrum of manpower management functions. This provides an indication of his role in manpower management. An individual functional plot can be expanded to include the detailed duties performed by the project team member by extracting from the job descriptions in the Appendix the relevant duties appropriate to the performance of each function within the plot. In this way, a specifically

Portrayal of Project Team Management Roles

49

focused job description for an individual can be established. This job description plot can be useful to further analyze an individual's work load and/or the establishing of a basic set of job qualifications for the position. The functions performed jn any manpower management decision process can be portrayed by a functional plot. When the plots of the project team members are overlaid onto the decision area plot, the roles of those project team members associated with the decision process can be identified. Upon further examination these plots will indicate, for example, whether the correct mix of individual expertise and authority is assigned to the specific decision process. The functional plot can be used to establish the interrelationships and work relationships that exist between different project team members. Generally, the functions plotted for personnel higher in the company and project management hierarchy will be located toward the top of the chart of basic functions, whereas those for a supervisor closely related to workface activities will be located or grouped toward the bottom of the function chart. In an ideally organized company and project management team, the plot of functions of each manager/supervisor should generally be concentrated in one area or level of the Manpower Management Functions chart. The extent of the function chart covered by the plot for an employee will be determined largely by the size of the company and project. Consequently, the plot for an employee of a small firm will probably cover more functions than will a plot for an employee in a similar position in a large company. By comparing the plots of different employees, several aspects of the project team organizational structure can be examined. As an example, the plot for the project manager can be compared with plots for the field superintendent, the foreman, and others. Such a comparison is especially useful for large complex organizations and may question whether functions are properly assigned to personnel in conjunction with their work loads, titles, and salaries. Thus the title of an employee does not provide an adequate basis for comparing two individuals within the same company or in different companies. In addition, the title of an employee may not give a true indication of the range and depth of his responsibilities. However, a functional plot can provide a meaningful description of the responsibilities and duties of an employee, regardless of his formal title. In this way, functional plots can reveal the actual company structure as far as manpower management is concerned rather than the theoretical structure displayed in organizational charts. Finally, the functional plot can be employed to portray the growth development of a management area or a specialized profession. A comparison of the functional plot of a management area at different levels of practice will reveal a definite professional growth pattern of that area. As an example, consider the cost control area of manpower management. At the small firm level, cost control functions focus on simple bookkeeping techniques and recording historical labor cost data. Cost control begins to assume a professional flavor at the medium-sized firm level where an inte-

Portrayal of Management Roles

grated labor cost control system emerges to assist in the identification of problems through functions that indicate specialized forecasting techniques and labor productivity analyses. Cost control becomes engineering oriented at the large firm level in terms of a systems approach to cost control with the utilization of scientifically applied cost control techniques and methods as required by work package related functions. Specific illustrations and examples of the various applications of functional plots, as discussed in this section, are provided in the following chapters, and are related to construction firms in the small, medium-sized, and large firm environments.

CHAPTER

5

Project Team Concepts The mode of behavior of a construction company can be described by the manner in which it acquires, organizes, and handles its portfolio of projects. At any one time these projects are being sought, bid, added to the company's portfolio, and removed by completion. Consequently, from the contractor's point of view, each project has a life cycle with recognizable birth, growth, decay, and death phases. Each life phase has its own management, organizational, and decision problems and involves different professional and functional groupings of company employees. In this management environment the company must be continuously spawning project management organizations, supporting field effort during project startup and field construction, and reabsorbing key personnel back into the home office (for later reassignment) while punch lists, wrap-up, and hand-over aspects of the completing project are being finalized. These management and organizational problems arc magnified for rcmote or inconveniently located projects. The planning, initiation, monitoring, and management of each construction project requires the combined talents and efforts of a variety of professionals at all levels in the construction management hierarchy. Some professionals perform specialized functions concentrated wholly within one life stage of a project. For example, estimators perform functions during the quantity take-off and planning phases of a project, and consequently may move frequently from project to project. Other professionals, however, are involved for long periods of time on the project site and become identified with project field management. Thus the nature and demands of a construction project establish the basic framework within which the various construction management personnel act and interact with each other. Many contractors, however, operate with between three and twenty projects in a continuously changing portfolio of projects, so that collectively, at any one time, projects can be at different stages of the project life cycle. The contractor must therefore cope continuously with complex and dynamic organizational, resource availability, and project management problems in the normal course of running his business. Hence

Project Team Concepts

5.1

PROJECT TEAM COMPONENTS

he must devise an effective but flexible management approach and organization for each project, yet maintain a general business, management, and professional capability for the company as a single entity. A common and practical solution is to locate all general business functional groups in a head office, or conveniently located regional office, together with the relevant professional project oriented staff support groups, and to locate all field construction and field management functional groups in the field at the project site. The individual projects are then integrated with the construction company through the performance of project management functions. These project management functions can be performed by head office o r field based personnel, or by an employee who is both head office and field based. Each alternative exists in practice and creates its own unique project management environment. The selection of a particular form is a critical management decision significantly influencing the management environment, the project team structure, and the professional and decision roles of the project team members involved. This chapter introduces concepts related to the development of the project team structure and relates them to common organizational forms found in practice. Following chapters consider in detail the organizational and management environments that foster these typical project team structures. In its most elemental form, the project team is composed of separate head office and field management components that are almost functionally autonomous, and consequently their interaction can be described as being segmented over time. The head ofice component can be segregated into essentially two different functional areas, whereas the field component is a complete functional entity in itself. For instance, the head office is functionally responsible for pre-job project definition (e.g., estimating and scheduling) and broad-based project management after construction begins. The field component, however, is functionally responsible only for on-site construction management activities. When referenced against time, the interaction between these functional areas begins when the head office allocates and releases personnel to the project, defines its scope, and plans its execution. The project is carried to the field when head office management issues it to the field component for on-site construction startup and execution of the field work. Finally, through periodic field input, the project returns to the head office, where it is contractually finalized and released to the client. Because functional autonomy exists, the interaction between these functional areas is generally weak at this component level of the project team structure. The advantage of this form of project team structure is that it clearly separates the construction management functional areas so that different professionals can adequately cover the project management sphere of action by complementing each other's talcnts. Thus the dual partnership firm in which one man predominantly handles business and office matters, and the other acts predominantly as a construction manager, is a typical example of this project team component structure. The pressure of work and the passing of time confirm the division of responsibilities in such dual partnerships, the initial breadth of expertise of the individuals notwith-

Project Team Components

standing. Their office discussions implement the ad hoc management-byexception emphasis of the project team component structure. Another common situation illustrating this type of project team structure is encountered in foreman or superintendent run projects, wherein head office managers perform general project related business functions, and through heavy office commitments and function overloads can only monitor field activity and progress through field reports. After company management decides to bid on a project, the specific manpower management functions initially encountered by the head office component are those involved in planning and scheduling. When executing these functions, the head office essentially defines the magnitude of a project's labor content and the project duration. Planning actuates the estimating function, which is the principal function for evaluating the project's labor cost component and project's total cost. The scheduling function will commit a project to a specific time frame by defining the construction sequence logic and activity durations in rough or approximate times compatible with a schedule that will enable project completion within a specified contract time. It should be emphasized that while performing these specific manpowcr management functions, the head office also handles other business management functions, including policy determination, legal matters, and loan requisitions, as well as the major procurement functions of expediting, purchasing, and subcontracting. As part of the pre-job, off-site project definition, the head office must allocate the project to a suitable field manager and schedule the project according to his availability. The head office then delegates full authority to field management and gets involved with construction management only on a management-by-exception basis. Thus the initial link between the head office and the field component occurs when the project is issued to field management for construction startup. Field management, while constrained to total project costs and the general time slot of the project schedule, performs most of the field construction management functions. Specifically, from the point of view of manpower management, field management will define and detail construction methods, schedule and supervise the project's actual work force, allocate manpower to each work task, monitor crew performance in relation to activity progress, make manpower management decisions, and handle labor relations problems such as hiring and firing and the resolution of jurisdictional disputes. During the execution of these functions, head office management may enter the decision process whenever unusual situations arise. For example, although a labor relations problem often starts at the site, it may proceed to the hiring hall via the union's business agent. From the union it is channeled back to head office management for resolution and then to the site for enactment of the final solution. Apart from the preceding specific manpower management functions, field management is also responsible for other areas of construction management, such as the on-site coordination of subcontractors, the planning and management of material handling activities, and the scheduling of project activities and construction equipment. During construction the primary communicative link between the head

I

Project Team Concepts

office and the field is project information flow (payroll data, construction progress reports, and quantities in place). This field input to the project management component is the necessary ingredient required to generate project labor cost data and such related information as may be required by accounting and payroll functions. The basic output provided by this recording function is then translated into project labor cost reports and company payroll documents, and is used for updating project schedules. The labor cost reports and revised construction schedules serve as the basis for head office monitoring. Provided that the field supplies these data frequently and satisfies periodic head office inquiries, field management maintains both full authority to execute construction and autonomy as a managing group. The basic field reports either convince management that field progress is satisfactory or raise questions that may result in site inspections and field conferences. However, aside from this stimulus, head office management also makes periodic site inspections to keep abreast of overall construction progress and to maintain good relations with project field management. The Project Team Component (PTC) structure can therefore be represented by three independent functional areas. These management areas are: Project definition. Field construction. Project management.

5.2 THE TRAVELING PROJECT MANAGER

Each area is essentially autonomous, with the field component subjected to head office constraints only on a management-by-exception basis. The relationships between these project team components are schematically and symbolically illustrated in Figure 5.1 for a typical head oflice and field site. The PTC concept of construction and project management is developed in detail in Chapter 6 . The construction firms commonly using this management approach can be identified by the construction and management environment in which they operate and by their organizational structure. In this way, the project team members can be identified and their roles and functions in the manpower management process described. The manner in which the project team members operate and the various documents they use reveal the basic manpower management policies subscribed to by a firm operating at this level. These manpower management policies collectively portray a unique management approach to construction management. The firm categoly most commonly identified with the Project Team Component approach is the small firm. A basic problem of construction management arises out of the physical separation of the field work sitc from the head office and the need to establish effective interaction between head office and field operations. The problem is aggravated with increase in project size and complexity, because these factors place greater demands on management effort at the same time that management is becoming increasingly aware of the need to strengthen links with the field.

PERIODIC SITE INQUIRIES AND INSPECTIONS PROJECT SCOPE

Figure 5.1

Project Team Component (PTC) concept.

A common management solution to this problem is to introduce a new decision maker who can operate at both head office and field levels, and by his management role knit together head office and field components, thereby compromising the autonomy of each component. This decision maker is responsible to, but acts independently of, top-level management, while maintaining full authority over field operations. To meet this end, he must continuously interface with both top-level management and the field. This interaction is accomplished by frequent travel between the head office and field site and suggests that he be described as a Traveling Project Manager. This most common form of the project team concept in construction practice has as its primary focus the integration of head office and field management functions, with the objective of ensuring better management control of field operations. This integration is established through the efforts of a head office based manager, often called the project manager but sometimes referred to as a general superintendent. In the context of this text, the manager is referred to as the Traveling Project Manager.* 'The descriptive title "Project Manager" (PM) is the nomenclature most common to the construction industry. "General Superintendent" is an alternative title often given to this person. Here "Traveling Project Manager" (TPM) is a coined title for describing a particular project team structure. Thus TPM and PM are interchangeable titles in this section.

Project Team Concepts

The Traveling Project Manager (TPM) acts as a courier of project data, status, and requirements between head office top management and the field work enviromnent. Although the field staff is responsible primarily for project construction, it also carries out the scheduling, allocation, and monitoring directives of the Traveling Project Manager. Similarly, the TPM reports to top management on project status and relevant manpower management problem areas, thereby linking the head office and field functions together continuously over time. The advantage of this type of project team structure is that project problems can be handled almost simultaneously by both top management and field personnel. In this way, project status reports, policy statements, and decisions are readily available and an integrated project information flow becomes possible. The Traveling Project Manager management approach generally releases executive management from the burden of performing multiple management functions at the head office level. Characteristically, the TPM approach requires the distribution of management functions to a larger number of decision makers. This tends to free at least one executive manager from direct daily project responsibility, which in turn enables him to concentrate on, or expand, his business management focus. Executive management normally participates in project definition by designing the struchre and staffing of the project team, and finally authorizing work commencement. Thus top-level management will assign both the TPM and estimator to the project, and eventually all other project team members. Depending on the size and structure of the firm, one executive manager may for specific projects assume the role of either the Traveling Project Manager or the estimator or both. His business management functions will be minimized by transferring the majority of his executive responsibility to another executive manager. This allows him to concentrate fully on project management. Conversely, the Traveling Project Manager may not be an executive type, and therefore may be released of business management responsibilities. He becomes solely a project manager and thus assumes a greater degree of independence from top-level management problems. In either case, the project manager becomes a full-time project team member and can concentrate entirely on project management. Therefore, once construction commences, he is expected to assume full responsibility and authority over field project execution and related head office planning and project management staff functions, and is responsible only to executive management. In practice, it is common for the Traveling Project Manager to have responsibility for three to four projects within the firm's portfolio of projects. The initial link between the field and head office levels occurs when the TPM executes the project scheduling functions prior to construction startup. Together with the key field manager(s), normally the job superintendent, the TPM schedules the project construction life cycle by grossly defining all construction activities and their durations consistent with project contract time constraints. To supplement the project schedule, these managers also engage in short-range manpower planning. By interfacing with the field managers in this manner, the cost, scheduling, and

The Traveling Project Manager

57

allocation directives of the TPM can be carried through to the field work environment. Field management will then assume full responsibility for carrying out these directives by performing the field construction functions in accordance with the stated directives. In terms of field manpower management, this would incorporate all functions relative to daily crew planning and the scheduling and allocation of labor. After work commences, the Traveling Project Manager directs the monitoring functions during field construction. He informs field management of the various labor related information he requires for determining project status and continuously interacts with the field to ensure that the proper payroll and activity data are flowing from the field. Depending on project size, the TPM will either directly coordinate the flow of project data to project cost accounting for processing or will staff the project with personnel assigned with this specific responsibility. He will subsequently coordinate the development of the necessary progress reports in order to inform both top-level management and field management of project status. To accomplish this, the TPM maintains close contact with the field by physically traveling to the project site on a continuous basis, often daily. The field staff uses project status information and those directives prcvided by the Traveling Project Manager to enact any manpower management decisions which are deemed necessary. In most instances, the field is fully responsible for these manpower management decisions unless significant changes are necessary. However, consultation with the TPM is common and occurs frequently when unique or difficult manpower problems are encountered. Thus the TPM is involved in problem solving on a regular basis rather than solely on the management-by-exception basis common to the small firm Project Team Component management approach. Top-level management may enter the decision process, depending upon the magnitude and significance of the respective problem. Regardless of the level of management involved in problem solving, the combination of an up-to-date and integrated project information flow with a continuous personal link to the field by a head office manager who is fully briefed by top management on its thinking and policies will ensure instantaneous action on any problem area. Finally, field management is responsible for daily crew management and must solve problems arising from work allocations and the visual observation of crew performance. The life blood of the TPM approach is the live monitoring of field conditions and status and the rapid decisive input of top management policies and decisions in response to field problems. This is achieved by the establishment of good management and labor relations, requiring close and continuous cooperation between both the field managers and the TPM as well as with top-level management. By working in harmony the project team members can create an environment that will be helpful to sound project management. This management attitude, when transferred to field operations, can instill higher levels of motivation among the project management and labor force. The net result appears in better quality workmanship and higher production levels. These attributes help the project team to complete the project on schedule and within the estimated cost.

Figure 5.2 Traveling Project Manager approach.

Field Based Project Management

The focus on better labor relations must begin in the head office and move quickly to the field for implementation, through close contact and continuous interfacing between project team members and the labor force. The key is the Traveling Project Manager's flexibility to interact and ability to communicate frequently with the field work force. The TPM management concept is graphically illustrated in Figure 5.2 in terms of manpower management functions. A typical head office location and field site are schematically and symbolically drawn on this figure. Superimposed onto the office and field site are the project team components, the general manpower management functions, and the general information flow lines. The manpower management responsibility focus of the TPM is highlighted by a series of three integrated management cycles which are performed continuously over the project's life. These management cycles are: A head office loop. Head office and field interface loop. A field loop.

5.3

FIELD BASED PROJECT MANAGEMENT

These TPM management cycles establish a constant interfacing between the head office and field operations. In this way the information flow provides the basis for an integrated project information system. Finally, client and contractor interface is described by information flow lines to both the project definition and project management components. The TPM concept is expanded in Chapter 7 by identifying the construction environment in which it most commonly emerges. The characteristics of this environment will serve as the basis for categorizing the type of firm most commonly associated with the TPM concept. The organizational structure of this firm will evolve around the Traveling Project Manager and will be discussed in terms of the interrelationships between the project management staff and their roles within the organizational and TPM project team structures. The manner in which the roles of each person are performed is determined by company policy. These policies will provide a foundation for describing the methods of performing each function and the information flow generated from which manpower management decisions are made. The decision approaches that emerge in total describe the basic approach to manpower management for a firm operating with the TPM concept. In construction practice, the modus operandi of the medium-sized construction firm most closely approximates the management approach associated with the Traveling Project Manager concept. At a certain level of project size and complexity, it becomes desirable, and for remote sites essential, to both strengthen field management effort and to broaden project team responsibilities. This management need stems from the requirement to cope with an increased level of detailed project information and the desirability of increasing the effectiveness of field management by relieving key field personnel of management function overloads.

Project Team Concepts

A characteristic mdnag$ment Qo~ution is to assign relevant project oriented head office functions for fiild based execution by incorporating into an enlarged field project team structure personnel capable of performing the transferred head office functions. In this way a complete project team structure emerges, having dual lines of communication: internally to the field based project management team headed by a full-time "on-site" project manager, and externally direct to each relevant head office functional area. Since more management functions now appear, and are staffed, at the field level, a more balanced and capable field organization emerges than that achieved by the Project Team Component or Traveling Project Manager management approaches. The project management approach described in the preceding paragraphs represents a significant step in project team development toward the fully integrated and autonomous project team. Its management approach is built around field based head office functions and is referred to in this chapter as the Field Based Project Management approach. The company structure supporting this project team approach tends toward specialization with the general management functions segregated by specific departments, divisions, or areas. This relieves top-level management of executing those functions that are more detailed in nature and frees them for managerial functions related to business operation and the supervision of employees. Specific manpower management functions are performed by groups identifiable with each function. For instance, planning functions may be executed by an estimating group, while some of the scheduling and allocation functions are the responsibility of scheduling and cost engineering groups. A construction group is responsible for the field construction functions. Each group can be characterized, for our purposes, by specific decision makers responsible for a certain manpower management task. These decision makers are associated with the project from its inception and follow it through to completion. An employee from a group located in the head office will normally have a counterpart at the field site within the field project organization. Collcctively, these employees form a team, with a specific employee responsible for executing particular tasks for each function of the manpower management process. When gathered in an organizational framework headed by a project manager, the employees become the project team. The manpower management process begins (see Figure 5.3) in the head office with project team design and staffing which is primarily the responsibility of project management. Almost simultaneous with project team design, the relevant planning, scheduling, and allocation functions begin. At the head office level, broad-based scheduling and allocation is performed by either construction office management types (e.g., general project manager, general superintendents, or project engineers) or by personnel who specialize in scheduling and allocation functions (e.g., scheduling engineers and/or cost engineers). An estimating group develops the project estimate that defines the project's labor content. The project schedule, developed by the scheduling group, initially s h w s the construc-

I

!

Field Based Project Management

,,

I

I

'-

ENGINEERING A N D i .................................... i DESIGN DEVELOPMENT

I

:

i

HEAD OFFICE

CONTINUOUS HEAVY DATA BASED INFORMATION FLOW

I

PROJECT DEFINITION

PROJECT DEFINITION- FIELD OFFICE

PLAN-Estimate development

t

.;.+

ALLOCATE

Detailed manpower {planning

JI

SCHEDULING AND MANPOWER GUIDELINES

ft:_"I

Detailed crew planning and

T

i

1

SCHEDULE-Detail work schedules

Project team design and staffing Long-range planning, scheduling, determination of manpower (including engineering and design as applicable)

HISTORICAL DATA FLOW

I

FIELD LOCATION

PLAN-Engineering d Design Develop~nent

adjustments Number of c r e m and

!I

PROJECT MANAGEMENT

t?

. . . MONITORIRECOR D-Enginem'ng/derign profless and status

MONITOR RECORD

E

Historical data development Data processing far field MONITOR

Crew action and labor relations

6

I

)

Progress and status and data processing

LSCHEDULE t -

I

$

I

_

1-1

PROJECT MANAGEMENT-FIELD OFFICE

-Summary level management records and approvals

I

Crew management Field monitoring

Status and revise

ACTIVITY DATA FLOW

I

1 I

CONTINUOUS SPECIAL INFORMATION FLOW

Figure 5.3 Project team structure: Field Based Project Management.

tion plan for executing the project, and when referenced against a time frame, depicts the schedule for completing the project within allowable contract time constraints. The project estimate, coupled with the project schedule, provides the necessary input to determine long-range total project manpower requirements. Once each of these head office functions i s completed, the project can be issued to the field and the field assumes full responsibility for project execution. However, the head office continuously supplies project data to the field through constant communication with key field managers. On a designxonstruct project, a continuous flow of engineering and design information i s required to support both head office estimate development, long-range scheduling and determination of manpower, and most facets of field construction and management. The impact of "in-house" engineering and design on the manpower management process i s shown in italics in Figure 5.3, and the associated information flow i s shown by dotted lines. Because the field staff i s manned with many decision makers specializing in the various manpower management tasks, the head office scheduling and

i,

Project Team Concepts

A-

5.4 TOTAL FIELD AUTONOMY

allocation functions also appear in the field. At the field office level, the project schedule is further dissected into more discrete plans and schedules for accomplishing the work. These microschedules focus on both the estimate and actual labor content (is., crew size and number of crews) of each work task. Generally, many project team members are involved in this detailed scheduling and allocation effort, with each contributing from his expertise. In this way, scheduling and manpower guidelines can be carried to the field where detailed crew planning, scheduling and allocation of manpower takes place. The work is then carried out by the crews under the direct supervision of the foremen. These functions are accomplished by the superintendents, field engineers, general foremen, foremen, and crews. The monitor function is confined primarily to the field and is the responsibility of many field decision makers, some of which appear only in the manpower management process at this stage. These persons specialize in data collection and processing (e.g., time keepers, field engineers, cost clerks, etc.). Other typical staff personnel, such as cost engineers, scheduling engineers, job superintendents, perform the necessary tasks of collecting progress and other activity data for processing. Raw data are processed through the record functions and become the basis for developing various project reports and other pertinent progress information. These reports are analyzed and evaluations regarding status are formalized. Collectively, the field project management team (i.e., the project manager, general superintendent, and cost/scheduling personnel) discuss problems revealed by the reports and implement manpower management decisions in a timely manner. Project management in the head office is informed of project status and progress through general information flows from the field. Normally, the overall project manager will enter the decision process only when extremely serious or complicated problems arise. However, most management reports are issued and approved by the head office project manager in charge of the entire project. Labor relations is an important aspect of field construction. Policies are set forth in the home office, adjusted for particular site locations, and implemented by the project team. Often, a special labor relations manager will emerge in the field organization. His responsibilities are to ensure that a high-quality labor relations program is maintained on site. He also gets involved with union related problems on behalf of the company (mainly in a closed-shop contracting environment). The Field Bascd Management approach to project management emerges in the construction environment of the large firm and is considered in more detail in Chapter 8. In certain project environments, it becomes desirable to strengthen the position of the project team by creating a team that is fully integrated and autonomous in terms of its project management approach. Although this management approach could possibly emerge in any construction environment, it is most likely to appear in the type of environment characterized by the large firm. In the large firm environment, it is often associated with

Total Field Autonomy FINANCIAL, TECHNICAL DATA,

CONTINUOUS DATA UNTIL PROJECT TEAM TRANSFER TO FIELD

H E A D OFFICE PROJECT DEFINITION

P ~ ~ ~ , " ~ , " ~ ~ ~ $ S

PLAN-Estimate refinements based on work order and trends SCHEDULE AND MANPOWER IMPACT

PLAN- Rough or detailed estimate development

PROJECT M A N A G E M E N T

SCHEDULE ALLOCATE FIELD CONSTRUCTION

I

PLAN SCHEDULE)

' Detail

crew planning and scheduling based on work order

ALLOCATE

I

MONITOR RECORD

SCIENTIFIC MANAGEMENT APPLICATION

PROJECT MANAGEMENT- FIELD OFFICE

RECORD-Generate labor data for project labor data base --

ONE- WAY FLOW O F PROJECT STATUS AND PROGRESS REPORTS TO EXECUTIVE MANAGEMENT

Figure 5.4 Project team structure: Total Field Autonomy Management (only changes from Field Based Management are shown).

design-construct projects in which management demands are significant. In many cases management pressure is brought to bear on the project team by the active participation of the client in the project management process. A common management solution to this project management environment is to assign complete responsibility to the project team and provide it with the freedom to manage the project with total autonomy. This means that the field is capable of executing all functions previously based in the head office, including engineering and design as required. The project team is enlarged at both the head office and field levels, with the head office staff transferring to the field as the field project organization increases in size and as field project execution intensifies. Without exception, lines of communication must remain between the head office and field in order to keep executive company management appraised of project status. However, the overall project manager is often an executive, thereby giving him increased authority to a& especially when he is located at the project site. In this way, the project management approach moves closer to the Total Field Autonomy concept. The project management approach indicated above is the consummate form in project team development. It is a fully integrated, balanced, and capable team organization with the flexibility to operate autonomously at

Project Team Concepts

the field site. All head office functions can be performed in the field and, with the authority of an executive project manager, total field autonomy can be achieved. In general, the manpower management process in terms of total field autonomy is similiar to the Field Based Project management approach. There are a few critical differences, which are highlighted in Figure 5.4; otherwise, the figure would be the same as Figure 5.3 (only the differences are shown in Figure 5.4). In terms of project definition in the head office, estimate development can be either rough or detailed, depending on the desires of the client. In either case, estimate refinements are made in the field based on work order estimates and cost trending deviations from initial budget estimates. Crew planning and management is impacted by work order analysis and scientific management applications. Labor data are generated in the field for a project historical data base. Lines of communication still exist between the head office and field. However, as project execution develops and project management control is transferred to the field, data flow from the head office is reduced significantly. Only summary level reports arc issued to the head office for top-level management review. All other project status and progress reports plus technical questions and considerations are handled directly with the client from the field through the executive project manager.* This management approach is referred to as the Total Field Autonomy project management approach. The construction firm most commonly associated with this project management approach is the large firm when operating in a construction management mode.

* It should be noted that engineering and design activities will continue as required to support construction in the design-construct project situation.

'

CHAPTER

6

The Project Team Structure: The Components The most fundamental and least complicated form of business structure in the construction industry is the firm whose owner operates as the president, vice-president, bookkeeper, estimator, job superintendent, and/or job foreman. In this holistic situation, there is no identifiable project team structure because one individual is the entire project team. To develop a project team structure, the firm has to expand beyond the single-man component. For this to happen the owner must delegate a portion of his responsibilities and duties to others and thereby establish one or more positions, such as bookkeepers, job superintendents or foremen. When a division of responsibilities and duties appears, an organizational structure will begin to emerge. The simplest identifiable project team structure that can emerge is that associated with independent (or virtually independent) management and organizational components that are only structured together sequentially in time. This project team structure was referred to in Chapter 5 as the Project Team Component approach to construction management. The head office and field components associated with project definition, field construction, and overall project management are the basic components in this simple organizational form for construction management. These three management components become effectively independent if heavy office commitments weaken the field supervision of projects by head office managers. Thus head office work overloads tend to separate the field construction and project management components into sequential action and reporting efforts to the detriment of the more desirable continuous and interacting relationship between project management and field construction management processes. The schematic illustration of the Project Team Component (PTC) approach to construction management (Figure 5.1) is repeated here for convenience as Figure 6.1. The construction firm most commonly identified -

~

Project Team Components M

FIELD SITE

HEAD OFFICE

PERIODIC SlTE INQUIRIES AND INSPECTIONS PROJECT SCOPE

Figure 6.1 Project Team Component (PTC) concept.

6.1 THE SMALL FIRM ENVIRONMENT

with this initial stage in the evolution of the project team organizational structure, and which is often forced to operate in a management work overload environment that produces the PTC approach, is the small firm. This chapter develops concepts relating to the PTC approach to construction management in relation to the business and management environment of the small firm and the development of its organizational structure. These are then related to manpower management functions and the roles adopted by typical small firm construction managers/supervisors. The small construction firm operates in a typically self-generated and imposed business, management, and regional environment. This imposed environment limits the growth potential of the small iirm through its own internal management capacity constraints and resistance to changes in its modus operandi. These constraints and business and management attitudes tend to limit the total construction dollar volume that the small firm can handle. The management and work environment of the small firm can be described by specific characteristics, some of which are unique to the small firm level of operation. The characteristics most typical of the small firm environment are:

The Small Firm Environment

A total construction volume less than $3 million.* A small number of permanent employees, fewer than four. General builders and highway contractors are the prevalent type. A competitive bidding environment. A local work region. A family owned or closely held operation. It should be emphasized that a construction firm operating with the management approach of the PTC mode would not necessarily have t o correlate positively with each characteristic of the small firm environment as defined above. For instance, the PTC management approach could coincide with a firm that has more than three permanent employees and is not family-owned. However, the PTC approach to project management is more likely to appear in a firm that has the foregoing characteristics. Small firms comprise the majority of construction firms in the construction industry today. Of the 800,000 businesses classified as construction firms, the vast majority are small, with 54 percent having no paid permanent employees and approximately 60 percent employing fewer than three permanent people. Since the majority of firms have fewer than three permanent employees, the number of key salaried personnel (excluding clerical staff) is minimized, thus reflecting a basic characteristic common to small business firms in all industries. In terms of construction volume, it is significant to note that in recent years approximately 4000 firms surpassed the $3 million level in total dollar receipts. Consequently, the remaining 796,000 firms with contract volumes of less than $3 million can be categorized as small. Furthermore, the firms in the low dollar volume range account for 67 percent of the total receipts, which indicates that the bulk of the construction activity is performed at the small firm level. Collectively, the firms outside this category perform a proportionately larger volume of construction work per firm than those within the small firm classification. At the small firm level the typically limited number of key personnel promotes the classical type of ownership in which the business entity is characterized by either a sole proprietorship or by a partnership with one or two individuals responsible for all managerial policies and for providing the capital necessary for operating the business. In fact, of the 800,000 contracting firms in the United States, roughly 80 percent are sole proprieforships. The sole proprietorship is the simplest form of business entity and the easiest and most inexpensive way in which to start a business. The sole proprietor enjoys many advantages accruing from organizational simplicity and the ability to exercise complete control over all managerial

* The majority of small firms fall in a range less than $1.5 million. Many of these firms are operated by an owner who is the entire project team (i.e., president, vicepresident, project manager, superintendent, foreman, etc.). The construction dollar volume chosen for the small firm represents, in our view, an upper limit ($3 million) wherein the project team would evolve to two or more permanent employees.

Project Team Components

policies. At the same firm level, a partnership enjoys many of the advantages available to the sole proprietor. Management control, however, is divided according to the degree of liability commensurate with the financial investment and responsibilities carried by each partner. This is not generally a major problem, because firms of three or more partners are rare. An additional advantage of a partnership over a sole proprietorship at the small firm level is that (by a division of responsibilities) it enables expansion, wherein a larger work load can be undertaken and be more effectively managed. Hence, partnerships will be more common in the $2 to $3 million range within the small firm category. The prime and specialty contractor classifications are the dominant construction firm types in this category. Of the two types, approximately 62 percent are specialty contractors, with the remaining 38 percent prime contractors. The single contract system is customarily employed at the small firm level of operation wherein the execution of construction is awarded to the small prime contractor. It then becomes their responsibility to deliver a completed project at the estimated bid price. The small specialty contractor is generally under contract with the prime contractor; however, circumstances will arise in which the specialty contractor will be in direct contract with the owner. When this circumstance arises, separate contracts are issued and several independent specialty contractors will work on the project simultaneously, each being responsible for a designated portion of the work. The competitive bid system is the prevailing means of obtaining work at the small firm level because of the nature of the projects available in the small firm environment. Thus the small contractor may be found engaging in either general building, both private and public, or in highway construction. Public projects may include such major highway projects as bridges, culvert construction, and roadway projects, as well as institutional projects such as educational and health care facilities. By law, most public projects stipulate the competitive bidding system, with an estimated 95 percent of all public projects being performed under this system. Other types of projects the small contractor may encounter are those for the private sector. In the private sector, projects are designed by architects to the specific requirements of a client. In an attempt to obtain the most economical price for the project, the client usually relies upon the competitive bid system. The projects the small firm actively attempts to bid for and construct rarely result in extending the firm's activities beyond its own relatively fixed geographical region. By limiting their work region to the counties or areas closest to the home office, the small firm can maintain local autonomy. This local autonomy is advantageous in that the managers will be continually aware of local labor conditions and a detailed analysis of labor availability and prevailing productivities will not be necessary. This localization attribute is a dominant characteristic of the small firm's construction environment. Thus, in the final analysis, small firms will not normally pursue work outside their region unless they plan to expand company size or are simply hungry for work. The bulk of the small firms are therefore

69

Organizational Structure of the Small Firm

6.2

ORGANIZATIONAL SUWCTURE OF THE SMALL FIRM

satisfied with that work volume which allows them to retain their local character, although at the same time this may clearly limit their potential for expansion and growth. Historically, the small prime and specialty contracting firms were founded by men who were skilled tradesmen tired of the field worker onented life style and who desired a business of their own. These men were more ambitious and professionally keener than most of their counterparts. They had a basic understanding and skill of such general management functions as estimating and project management, but rarely had any formal management training. Since the structure of the industry allows for relatively easy entry, a tradesman may become a contractor overnight. He could enter the business as a sole proprietor or could join with an associate and begin a business under a partnership. If a partnership is formed, the associate may furnish the business and management skill that the tradesman lacks and which he probably gained through formal training coupled with past experience with another construction firm. Conversely, if the tradesman sets up as a sole proprietor, he will often introduce business and management skills later through family ties by promoting a son into the business who has had formalized training from a business or construction engineering and management course taken at a local university or college. In either instance, the firm is most often expanded by owners employing members of their family. Once established as a reputable contractor, the small firm is often perpetuated by strong family ties. Specialty contractors are even more frequent at the small firm level, as indicated by previously cited statistics. The most common specialty contractor type is that in which a craftsman starts a construction firm specializing in his given area of expertise. For instance, a journeyman brick mason with foreman or general foreman experience is often able to enter into business as a masonry specialty contractor. Given favorable conditions and opportunities, the small specialty firm might gradually expand over time into a prime contracting firm. The characteristic of the small firm which has the most significant impact on the organizational structure is the limited number of key permanent employees. This staffing and management constraint generally promotes the sole proprietorship or partnership form of business entity, and when coupled with a strong family orientation, ensures that the key permanent employees are also the owners of the small firm. The owners are responsible for establishing and executing all the general business functions (i.e., ownership, investing, practicing) necessary to the operation of a construction business, as well as the other functional categories normally required for construction management: Business management. Estimating. Planning and project management. Procurement.

I 1

Project Team Components

pjstruction. Accounting and payroll.

TO execnte these functions, the owners must develop and implement all policies, including those which are applied to manpower management or which indirectly influence the manpower management process. Head office policies, whether formally stated or implied by the attitude and conversation of the managing partners, quickly permeate through the organization, and when transmitted to the field, will noticeably influence the manner by which field construction is executed. Proper administration of policy and effective execution of the general management functions requires a precise definition of areas of responsibility and lines of authority. This definition can be characterized by, and emerges through, the administrative organizational structure that is adopted for the small firm. The growth development of the small firm organizational structure is illustrated in Figures 6.2 and 6.3. Figure 6.2 shows functional groupings for typical small construction firms operating either as a sole proprietorship (Figure 6 . 2 ~ or ) as a partnership (Figure h.2b). The general management functions are grouped in a hierarchical relationship. Figure 6.3 portrays the division of authority by superimposing onto the organizational charts the various management staff, and illustrates through functional authority plots their areas of responsibility. As shown in Figure 6.3a, the sole proprietor is responsible for the business management, estimating, planning and project management, and procurement functions. He directly supervises the office support personnel,* usually not key permanent staff members, who perform the majority of the accounting and payroll functions. The sole proprietor also oversees and is responsible for all field construction on a management-by-exception basis. Figure 6.3b illustrates the most likely division of responsibility when a sole proprietor employs a second permanent staff member, such as his son. In this situation the son generally gains experience in both head office and field functions. In the head office he may initially assist in quantity takeoff and procurement, whereas in the field he may work at project management functions under the guidance of a job superintendent. With time and experience the son may assume more responsibility, and eventually, as in a partnership, the organizational structure of Figure 6 . 3 ~may emerge, in which the general management functions are distributed among the partners (Figure 6 . 3 ~ ) In . this form of business entity one partner typically performs all business management, estimating, and procurement functions. The same partner supervises the accounting and payroll functions of the office support personnel. The other partner tends to concentrate his rcsponsibility on the planning and project management functions and monitors field construction activity. Management responsibility within the firm could be further divided if the firm employed other permanent staff members. *The office support personnel staff could include a clerk, secretary, or else a professionally hired staff when required.

Organizational Structure of the Small Firm OWNERSHIP

ESTIMATING PROCUREMENT

OWNERSHIP INVESTING

PRACTICING

BUSINESS MANAGEMENT ESTIMATING PROCUREMENT

I I

PLAN.ING

1

Figure 6.2 Organizational chart for small construction firm. (a) Sole proprietor. (6) Partnership.

In the small firm the primary managers are required to perform a great variety of management functions, some of which are project oriented while others are business oriented. This management function spread is a characteristic of the small firm organizational structure and often leads to a management function overload, which may exist to the point of drastically reducing management efficiency. On the other hand, the focus of field decision makers in the small firm pertains almost exclusively t o construction management, with manpower management a primary consideration. The concentration of management functions in the small firm and the tendency to functional overloading of top management restricts growth potential. Thus both individual project size and total contract dollar volume are affected by management capacity and span of control constraints. It is

ESTIMATING

OFFICE SUPPORT PERSONNEL

'

(a)

FIELD PERSONNEL

OWNERSHIP INVESTING PRACTICING SOLE PROPRIETOR BUSINESS MANAGEMENT ESTIMATING PROCUREMENT PLANNING

CONSTRUCTION FIELD PERSONNEL fb)

INVESTING PRACTICING

I BUSINESS MANAGEMENT ESTIMATING PROCUREMENT

PLANNING

ACCOUNTING

CONSTRUCTION FIELD PERSONNEL

fcJ

Figore 6.3 Management responsibility for small construction firm. (a) Sole proprietor. (b)Transition. (c) Partnership.

The Project Team

6.3

THE PROJECT TEAM

difficult for the small contractor to escape these constraints, because on the one hand he must maintain limited overhead in order to make a profit, and on the other hand it is difficult to ensure continuity of work volume in the highly competitive construction environment of the small firm. To manage an individual project, the firm's principal decision makers must be assembled into a management team suitable for executing all construction management functions, which at the same time reflects the company's organizational structure. Figure 6.4 shows a typical project team organization for a small firm having at least two permanent head office decision makers. If only one permanent man is operating the business, the estimator would not appear as a separate decision maker, and the project manager would assume the dual responsibilities of the estimating and project management functions. The job superintendent and foreman have a significant impact on the operation of the business because, as field managers, they are completely responsible for on-site construction management. In the sole proprietorship small firm, especially in cases where the sole proprietor must spend considerable effort on procurement and business matters, these field personnel assume a project management role similar to that of the Project Team Component approach outlined in Chapter 5. However, the job superintendents and foremen are generally not classified as permanent employees of the small firm because their explicit affiliation with the firm potentially terminates at the end of each payroll period.' Furthermore, at this level these employees rarely have any financial stake in the operation of the company. Provided that the firm can maintain

OFFICE SUPPORT

Figure 6.4

Typical project team organization in small construction firm.

*Foremen are rarely classified as permanent company personnel at the small iirm level.

Prnject Team Components

construction volume through a succession of projects, a nucleus of superintendents and foremen can be maintained that are loyal to the small firm. In this way the owners attempt to build up a staff of reliable field personnel. A small specialty contractor at this level rarely employs a superintendent and relies heavily on foremen for field management. As mentioned previously, the project organization must reflect the organizational structure of the small firm. This requirement is illustrated by mapping onto the organizational chart of Figure 6.2 the project team members of Figure 6.4; the resulting chart is then used to define responsibilities, as shown in Figure 6.5. Typical job descriptions of the project manager, estimator, and field

I

OWNER- MANAGER OWNERSHIP INVESTING PRACTICING ESTIMATING PROCUREMENT PLANNING PROJECT MANAGEMENT

I

1 I

I

I

I

OFFICF

ACCOUNTING PAYROLL CONSTRUCTION

OFFICE PARTNER

I

INVESTING PRACTICING BUSINESS MANAGEMENT ESTIMATING PROCUREMENT

----------

I

FIELD PARTNER PROJECT MANAGER OWNERSHIP INVESTING PRACTICING PLANNING PROJECT MANAGEMENT

OFFICE -SUPPORT PERSONNEL

rn

CONSTRUCTION

1

I

I JOB S U P E R I N T E N D E N I

ACCOUNTING PAYROLL

CONSTRUCTION

CONSTRUCTION

Figure 6.5 Typical management responsibility in small construction firm. (a) Sole proprietor. (b) Partnership.

The Project Team

superintendent construction personnel, as defined by the Associated General Contractors of Chicago," are given in Table 6.1. Only job descriptions for those staff types who appear at the small firm level have been quoted. Other personnel described in the AGC Handbook, such as the expediter, mechanical superintendent, scheduling engineer, and timekeeper, are excluded in this chapter because these classifications do not appear at the small firm level. The functions normally performed by these individuals would be added to those handled by the project manager, job superintendent, and estimator at the small firm level. For example, the estimator would probably assume expediting responsibilities. The job descriptions of Table 6.1 indicate broadly the management functions performed by construction personnel at the small firm level. Variations in job responsibilities will occur from firm to firm, and even from project to project, depending upon the nature and capabilities of individual men and management styles. As indicated in Table 6.1, the project manager's job description covers both that of the head office man-

TABLE 6.1 JOB DESCRIPTION FOR TYPICAL CONSTRUCTION PERSONNEL

Project Manager A . General Functions

The project manager in the construction industry is usually an "inside" and "outside" man. The position may vary considerably from company to company. The project manager in some companies may he an estimator, and expediter and even handle some duties normally done by the job superintendent, while with other companies he may merely supervise superintendents. B.

Detailed Functions

1.

May procure the invitation to hid on jobs May, when working as an estimamator, prepare bids May handle the legal requirements for a contract May negotiate the specialty contractor's arrangements and agreements Set up completion schedules by hargraph or Critical Path Method Supervise subcontractors and coordinate their material deliveries Arrange for sufficient manpower for the project Supervise superintendents on the job-"walk the job" each day to see progress being made, and during this time review the work with a superintendent

2. 3. 4.

5.

6.

7.

8.

9.

10. 11.

12. 13.

14.

Control the movement of men from one job to another Arrange for permits from the city, country, etc. Hire and fire superintendents, foremen, engineers and other personnel under his supervision Set up occupancy dates for buildings Act as public relations representative Coordinate with architect and owner requested revisions or errors found in drawings

* "1970 Management in the Construction Industry-Handbook for the Construction Manager," The Builders' Association of Chicago, Inc., North LaSalle Street, Chicago, Illinois 60601.

TABLE 6.1 (continued) Field Superintendent A.

General Functions

Builds the building. Manages men and materials on the job site so that the project is built for profit. Coordinates schedules so that men and materials are available to promote efficient erection of the building at a profit level. B.

Detailed Functions

1. "Learns the building"-studies plans and specifications so that he can plan the work to be accomplished 2. Tries to anticipate problems 3. Studies the costs 4. Arranges scheduling and manufacture of building parts of components 5. Coordinates building when the manufactured items will be available for the building 6. Does survey and layout work or supervises technical or field engineer who does this 7. Keeps constant check on all trades, overseeing workmanship and materials 8. Hires and fires workmen 9. Supplies information to Accounting Department so that records of costs can be maintained

Supervises men directly or indirectly (i.e., through the foreman) May be responsible for deliveries Is responsible for drawings and seeing that drawings are made of changes or incomplete items Arranges for plan changes as needed May be responsible for written schedules or physical schedules Does on-the-spot estimating (material or labor) May price out extra items or charges Does limited buying (supplies and items missed by the purchasing department) Makes daily safety inspections May record daily field activities in a log

Estimator A . General Functions

An estimator makes as close an estimate as possible of what the costs will be. In order to do so, he must itemize all of the building materials, calculate labor costs for the entire project-the cost estimate may also include a percentage for profit, though this may be done with or by top management B. 1.

2. 3. 4.

5.

Detailed Functions

Mail and/or telephone bid proposals to subcontractors Follow up with subcontractors on submission of their bids Review bid with subcontractors Prior to bid, inspect job site to determine access and that the land is the same as on the plans; look for water conditions and other problems which might arise Analyze plans and specifications (i.e., "learn the job")

6 . Make a "take-off" for each type of work to be done by general contractor forces 7. Does "take-off" for subcontractors when necessary 8. May sit in on owner, architect and contractor conferences 9. May check on other estimator's work or have his work checked by another estimator 10. Price the quantity "take-offs" 1 1. Read prints, noting discrepancies

Manpower Management Functions a1 the Small Firm Level TABLE 6.1

(continued)

12. Make itemized lists of prices for materials 13. Review and preview subcontractors' bids 14. In some companies purchases steel, lumber and all other materials necessary for the job IS. Compute a percentage for overhead and profit, which would be added to estimated cost 16. Arrive at final bid price or cost price 17. Prepare change order (estimates cost of changes) as needed or

18. 19. 20. 21.

required-if major item and not handled by field personnel Expedite distribution of plans, including general and mechanical Serve in quality control capacity, due to position in purchasing and plan review Make bargraphs, network or C.P.M. for scheduling Make cost breakdown of work performed by company forces for cost control purposes

Source: "1970 Management in the Construction Industry-Handbook for the

Construction Manager," The Builders' Association of Chicago, Inc., North LaSalle Street, Chicago, Illinois 60601.

6.4 MANPOWER MANAGEMENT FUNCTIONS AT THE SMALL FIRM LEVEL

ager in the Project Team Component approach and that of the Traveling Project Manager. The distinction will lie in the attitude of the project manager and in his performance of the detailed functions; thus if the project manager actively performs function 8 (Supervise superintendents on the job--"walks the job" each day), then he will be acting as a Traveling Project Manager. If, however, through pressure of work or inclination, he is mainly an "inside man" and visits the job only on a management-byexception basis, then the PTC management approach will naturally result. In order to look more closely at the modus operandi of the small firm and the roles individuals play in manpower management it is necessary to identify the manpower management functions relevant to the environment and operation of the small firm. The manpower management functions considered by the authors relevant to the modus operandi of the small firm are shown in Figure 6.6. These thirty-five manpower management functions have been extracted from the forty-six ideal project manpower management functions of Figure 2.7 and are presented in Figure 6.6 in the same relative tabular positions. The small contractor does not consider or execute all the ideal project manpower management functions.* For instance, the work package approach to planning and estimating is not commonly applied as a manage-

* The forty-six labor management functions introduced in Chapter 2 and described in the Appendix are considered by the authors to be a basic reference for the description and understanding of project manpower management approaches in the construction industry. Some of these functions are fundamental to any approach, but others are relevant only to specific management techniques, scale of operations, and management attitudes. Still other functions are relevant to most management approaches but may be handled informally in an ad hoc or even subconscious manner by some managers and firms, whereas other managers and firms may consider them important enough for formal consideration. Thus not all the forty-six functions are considered relevant to the small firm environment and PTC management approach.

PLAN P

SCHEDULE S

1 PI CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

2

P2 AOTIVITY DEFINITION

ALLOCATE A

S2 ESTABLISH CONSTRUCTION SCHEDULE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

3 P3 QUANTITY TAKEOFF 4 P4 ESTIMATE LABOR CONTENT 5

6 P6 DETAILED FIELD QUANTITY TAKE-OFF 7 P7 ESTABLISH CREW REQUIREMENTS 8 P8 PLAN WORKFACE LAYOUT

S5 DEFINE CURRENT PROJECT STATUS S6 REVISE CONSTRUCTION SCHEDULE S7 SCHEDULE PROJECT CREWS

A5 ADJUST CREWS A6 ASSIGN INDIVIDUAL WORK TASKS

Figure 6.6

WORK W

MONITOR M

W2 PREJOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

W3 WORKFORCE MANAGEMENT W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS WS ESTABLISH FIELD CREWS

M5 LABOR ANALYSIS

W1 RELEASE STAFF TO PROJECT

W6 SOLVE HUMAN RELATIONS PROBLEMS W7 INrrIATE INDIVIDUAL WORK TASKS WR EXECUTE WORK

Manpower Management Function chart for small firm.

RECORD R R1 HISTORICAL DATA BASE R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

M6 WORK PROGRESS

R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

M8 FIELD INSPECTION

Manpower Management Functions at the Small Firm Level

79

ment technique to labor determination and management problems by the small contractor. The type of work normally handled at the small firm level is performed using well-tried construction methods with fixed crew sizes and known production rates. In addition, the work content of each portion of the project is usually fairly closely known before construction begins so that field based planning and estimating is a check on the bid cstimate. The work package approach to field planning and estimating is generally used on large complex engineering projects when none of the above conditions hold. Thus Figure 6.6 does not contain those management functions (i.e., PS, 54, and R4) relevant to the work package approach. Similarly, the small firm handles projects with small work forces in areas where the local labor pools are generally adequate for their needs. The small firm therefore rarely requires the specific determination of trade man-hour and manpower profiles (S3 and A3 functions). Field activity is simply visually assessed and the consequential assessment of impacts on project completion rarely justifies any significant effort or the preparation and consideration of special project forecasts and field activity analysis (M3 and M4 functions). This is understandable because the nature of the small firm's project environment hardly demands such complex projects with significantly large management staffing requirements and project labor forces. The small contractor's portfolio of projects never falls within this category. At the small firm level, a number of the manpower management functions (about one third) must be formally processed either because of their importance to the contracting process or from the legal requirements arising out of the employment of labor. Usually, the performance of these functions leads to the preparation of special documents and files. Thus the estimating and planning process for a project (involving the performance of functions P I , P2, P3, P4, S1, and 52) leads to the preparation of quantity sheets, estimate summaries, and construction schedules. The techniques used and the manner in which these estimating functions are performed, together with their supporting documents and policies, was considered in Section 3.4. In the field, the monitoring and recording of construction effort (involving the performance of functions MS, M6, M7, M8, R6, and R7) leads to the preparation of time cards, quantities-in-place, and daily construction reports and the assessment of general project progress and labor productivity. Finally, the project management process (involving the performance of functions M I , M2, R2, R3, and R7) generates payroll, recording of earnings and employment, cost reports, and similar project management reports. However, most manpower management functions, at the small firm level, are performed, as the occasion demands, in an ad hoc manner by project team staff relying on their past experience and skill. Rarely does the performance of such field functions require documentation. Thus the day-to-day direction and management of the construction crew, the general planning and scheduling of field construction, and field

Project Team Components

6.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT

inspections focusing on work progress and labor productivity are vital but often undocumented field management functions. Although the quality of the performance of these functions depends upon the skill and experience of the superintendent and foreman concerned, it is important for a proper understanding of the construction management process that the management approach used by these individuals and their decision rationales be examined. At the small firm level the personnel responsible for, and involved in, the performance of manpower management functions are the project manager, estimator, and office support personnel (located in the head office), and the superintendent, foremen, and crews (located in the field). The distribution and allocation of manpower management functions to an individual project team member can be portrayed by a functional plot. As mentioned in Chapter 4, the basis for illustrating the role of the project team member is his involvement in the basic manpower management functions. If the individual performs one or more of the work tasks required by a function, then the identifying name or label for the function is included in the functional plot for the individual. Figure 6.7 shows such a division of functions to the various project team members as plotted on the Manpower Management Function (MMF) chart. In some cases several staff members share performance of a function. For these cases the functional plots for each person involved are shown as embracing only a portion of the relevant functions. It is not surprising to see that the Project Manager (PM) and Job Superintendent perform the majority of the manpower management functions. This agrees with Figure 6.5b in that these managers are shown as having responsibilities over the major construction management functions (i.e., planning, project management, and field construction), where most manpower focused functions of the small firm are performed. The general form and distribution of the functional plots clearly portrays the hierarchical nature of the project team structure and corresponds to the organizational structure of Figure 6.5b. The estimator and office support personnel perform staff functions for the project manager as indicated by the nested functional plots of each relevant to that for the project manager. Similarly, the obvious line structure relationship that exists between the superintendent, foreman, and crew is evident in the overlying and embracing form of their functional plots. Finally, as shown in Figure 6.7, clear distinction between head office and field oriented functions is suggested by the superintendent's and project manager's functional plots. All functions above the superintendent plot are head office functions. Figure 6.7 represents only an ideal division of management functions describing the general duties and tasks of each project team member. The actual MMF plot for staff of a specific small firm would reflect company size, capabilities of individuals, and so on. For example, if the MMF plot portrayed the project team roles of a sole proprietorship with only one office manager, the project manager would assume those functions normally assigned to the estimator. The estimator would not appear o n the MMF

PLAN P

SCHEDULE S

Figore 6.7

ALLOCATE A

WORK W

MONITOR M

Ideal division of manpower management functions in PTC managementapproach.

RECORD R

Project Team Components

plot. On smaller projects, the estimator and project manager would probably be the same employee regardless of company size. Similarly, a key foreman or the project manager may assume the superintendent's functions on small projects. The manpower management function plot in Figure 6.7 can be emphasized by including brief scope statementiof the duties or tasks (extracted from the Appendix) involved in function performance as applied by the small f i r m . this way, the MMF plot fbr each project team member becomes a basic job description and serves as an illustration of their manpower management focus at the small firm level. As an example, Figure 6.8 is a MMF plot which provides a brief description of the duties or tasks required to perform each function. When referenced against the project team member plots, Figure 6.8 provides a basic job description of each team member. Notice in Figure 6.8 that when two plots embrace one function, such as the REVISING OF THE CONSTRUCTION SCHEDULE (S6), different duties arise for each team member. In this case, the project manager updates the bar chart schedule while the superintendent reschedules activities in accordance with the updated schedule. When two plots embrace one function and only one duty is described, then both team members perform the same duty. The Estimator, according to the AGC function descriptions of Table 6.1, could become involved with head office scheduling (make bar graphs, network, or CPM for scheduling) and recording (make breakdown of work performed by company forces for cost control purposes). If these functions are added to the estimator manpower management scope of responsibilities, the MMF plot would show the new division of functions as depicted in Figure 6.9. In this case, thc estimator shares scheduling responsibility with the PM and recording responsibility with the office support personnel. The normal functional plot of the estimator assumed in this section is shown in Figures 6.7 and 6.8. A detailed discussion of his role in manpower management at the small firm level is presented in Section 3.4 and covers the estimating process. The role of the project manager as expressed by his MMF plot (Figures 6.7 and 6.8) when compared with his project team responsibilities (Figure 6.4) indicates that he is primarily involved with the performance of those functions associated with project management. In addition, the PM is a company partner and has other general company functions that he must perform (Figure 6.5b). In his role in manpower management, the PM develops construction schedules (S1 and S2), assigns and releases staff to the project ( A l , A2, and W l ) , and reviews project status and performance (MI, M2, and S5), from which he updates the construction schedule (S6). The project manager interfaces with the superintendent in those areas that provide the requisite information for project status and performance evaluations. Thus the PM shares function performance with the superintendent when verifying quantities placed to date and measuring field progress in terms -

~

PLAN - P

SCHEDULE-S

P1 EVALUATE: SITE CONDITIONS

S1 ESTABLISH: ACTIVITIES AND SEOUENCE

ALLOCATE - A

MONITOR- M

WORK- W

A1 ASSIGN TO JOB: ESTIMATOR OFFICE STAFF

W1 RELEASE TO JOB: ESTIMATOR OFFICE STAFF SUPERINTENDENT

M1 DECIDE: COLLECTIVE ACTION ANALYSE: LABOR COST REPORT

/ ~1 FILE: LABOR U N l T COST DATA

PROJECT STATUS IDENTIFY: PROJECT ACTIVITIES SUBCONTRACTS

%SIGN TO JOB: SUPERINTENDENT

~VELOP: ACTIVITY BAR CHART SCHEDULE

P3 PERFORM: QUANTITY CALCULATIONS AND RECORD

I"

I

PROJECT MANAGER

ESTIMATOR EVALUATE: LABOR UNlT COSTS; UNIQUE CONSTRUCTION METHODS: TOTAL COSTS

I

ARGUE: CREW CHANGES

~

A6 ASSIGN: lNDlVlDUALS TO WORK TASKS

UPDATE: BAR CHART SCHEDULE RESCHEDULES: ACTIVITIES

)

1

ESTABLISH: CONSTRUCTION METHOD; DURATIONS; CREW SlZE

S7 DETERMINE: CREW START DATES

,

SUPERINTENDENT

I I II

ADVISE AND CAUTION: INDIVIDUAL'S PROBLEMS HANDLE: INDIVIDUAL'S CONFLICT

FOREMAN

W7 BRIEF AND DIRECT: CREW MEMBER ON WORK ROLE

ARGUE: CREW SlZE AND MIX W8 ACCOMPLISH: WORK CREW MEMBERS

LOCATE: ERUIPMENT MATERIAL SUPPLY LOCATE: MEN'S POSITIONS

I

PROCESS: LABOR

M7 INSPECT: D A I L Y WORK DETERMINES: HOURS WORKED

R6 DOCUMENTS: RUANTITIES PLACED DOCUMENTS: D A I L Y FIELD ACTIVITY

R7 REVIEWS: HOURS ASSIGNS: COST

)(

FILLS - - - IN HOURS ON TIME CARDS

1 I

INSPECT: WORK QUALITY IN CREW

Figure 6.8

OFFICE SUPPORT PERSONNEL

LMLZ EVALUATES: MATERIAL IN PLACE INSPECTS: D A I L Y FIELD ACTIVITY

\

I

TOTAL PROJECT COSTS

ANALYSIS: ACTUAL VERSUS ESTIMATED UNlT COSTS

ASSIGN: PERSONNEL TO CREW

(-;

:

R3 PROCESS PAYROLL AND RECORDS

W5 ASSIGN: FOREMAN S E T UP: C REW S

PRODUCTIVE C REW S

O

C MPUTE HISTORICAL LABOR UNlT COST DATA

HIREIFIREIREDI RECT: CRAFT PERSONNEL

ENFORCE: JURISDICTIONAL AREAS PROPER SKILL LEVELS S5 EVALUATE: ACTIVITY STATUS

DETERMINE: ACTIVITY CONTENT; MATERIAL ERUIPMENT ADVISE: FIELD CONDITIONS-

PREPARE:LABO R COST REPORTS

~N~ERFACE UNIONS : SUBCONTRACTORS

Manpower management job description plots for PTC members.

CHECK: QUALITY AND WORKER OUTPUT

J

Figure 6.9 Division of manpower management functions in PTC management approach with estimator assuming greater project responsibility.

of completed components of the project. This information plus labor cost data enables the PM to analyze actual labor cost performance against the estimate. The office support personnel, as shown in Figure 6.8, are involved with payroll and cost accounting activities (R3) and also the collecting and filing of historical labor unit cost data (R1 and R2). This work might be done by a professional but is normally performed by a clerk. At the field level, the Superintendent is associated with the general planning, scheduling, and monitoring of field work, which is considered his normal role. Specifically, in terms of his MMF plot (Figures 6.7 and 6.8), the superintendent performs crew planning and management functions (P6, P7, P8, 57, A5, W3, W4, W5, and W6) and field monitoring of crew performance and activity progress (M6, M7, M8, R6, and R7). When performing these functions the superintendent becomes the key

Management Roles in Manpower Management

85

man in the construction process of the small firm. In this position, the superintendent is normally a highly motivated individual who readily accepts the challenge of the job, as often evidenced by the long hours he works. Because he is responsible for field construction (Figure 6.5b) he must be technically competent in all facets of construction and has probably specialized in one facet, such as carpentry work. The superintendent must be a leader and have the ability to draw out the full potential of his personnel through a knowledge of their individual strengths. Hc must respect the ability of his foremen and recognize their authority. In his management role, the superintendent advises and instructs his foremen and maintains discipline, because he is the final arbitrator with respect to hiring, firing, and the solving of an individual's problems. Thus he must be well versed in the area of human relations management. In addition, the superintendent, in his manpower management role, is involved with industrial relations. H e must anticipate, ward off, or maintain a proper company attitude to jurisdictional areas and restrictive work practices. The foreman position is heavily oriented toward the crew and individual work levels in the field. The day-to-day direction of the construction crew is considered the normal role of the foreman. The Foreman's role, as depicted on his MMF plot (Figures 6.7 and 6 . 8 ) , is heavily oriented toward those crew planning and management aspects that focus on close contact with individual crew members. His field monitoring focus relates to the day-today evaluation of individual crew member performance and output achieved (M7, M8, and R7). In his role in manpower management, the foreman has to be most knowledgeable in the area of human relations because of his daily, often hourly, contact with the individuals he manages. In this position, he must have a management style that will command respect through effective leadership, communications, and good relations with his people. The foreman must have the ability to handle men insofar as he must continuously be alert for and sensitive to an individual's personal problems. He must enter into and resolve conflict problems between individual crew members and in extreme cases initiate such drastic action as the transferral or firing of individuals. As a manager the foreman must have a sound technical and construction background in his area plus an understanding of related areas. He must be able to perform specific work tasks himself as well as direct and train individuals in the proper performance of those work tasks. The foreman must possess leadership qualities and if he is in a closed shop construction environment, have extensive knowledge of jurisdictional areas and restrictive work practices. A general discussion of project manpower management decision processes of the small firm is left to Chapter 15. The specific manner in which project team members of the small firm perform their decision processes is left to the companion volume in this series.

CHAPTER

7

The Project Team Structure: The Traveling Project Manager

7.1 THE MEDIUM-SIZED FIRM ENVIRONMENT

The Traveling Project Manager concept of project management emerges in a construction environment typically characterized by the contractor handling a portfolio of projects which vary considerably in total dollar magnitude and complexity. Construction companies in this environment often carry as many as twenty different projects on the books at any one time, depending on the size of each project. Individual projects can vary from $1 million to $10 to $20 million in sue. To manage the increased construction volume and the broad gamut of project size and complexity, the firm must deviate from the organizational composition and approach to project staffing of the small firm. The firm must increase the number of responsible decision makers and expand their authority and focus, and yet develop a management organizational structure wherein top management does not lose contact with field operations. When assembling these decision makers into a project team structure, a project decision maker emerges whose focus of responsibility clearly links the head office and field project team components. This individual, as previously suggested, is identified as the Traveling Project Manager. The schematic illustration of the Traveling Project Manager approach to construction management (Figure 5.2) is reproduced here for convenience as Figure 7.1. The Traveling Project Manager first emerges as a distinct member of the construction management hierarchy in the construction firm that will be classified as the medium-sized firm. The following sections of this chapter develop the Traveling Project Manager approach to construction management in relation to the business and management environment of the medium-sized firm and the development of its organizational structure. These are then related to the manpower management roles adopted by the typical medium-sized firm. The construction environment of the medium-sized firm as compared to the small firm changes radically in some aspects and not so radically in others. Unlike the small firm, the medium-sized firm performs its con-

The Traveling Project Manager

struction activity in an environment that is less congested in terms of the total number of firms. This suggests that there are fewer firms competing for the same construction dollars and that each project demands a higher level of technical competence, capitalization, and management effort. In addition, the usual broad range of project size and complexity in the firm's portfolio implies that there are fewer projects available for the medium-sized contractor. Therefore, a stringently competitive atmosphere will prevail in this environment. Finally, whereas the total construction volume of the small firm rarely exceeds the $3 million range, the total yearly construction volume of a medium-sized firm could easily vary from $4 million to $50 million or more, depending upon the availability of financial resources and the nature and mix of their project portfolio.* The medium-sized firms' segment of the construction industry consists of approximately 2900 firms with a range of permanent key salaried personnel for each firm between 20 and 200 employees. A significant percentage of these key managers are affiliated with the field organization as either superintendents or other supporting personnel. Included in the foregoing figures are general foremen and/or foremen, who maintain a continuous working relationship with a company, but in actuality are not permanent salaried personnel. The remaining employees are office managers, of which some are directly associated with the ownership aspects of the firm. The corporate form of business entity emerges as a viable means of company ownership because of the significant capital investment and subsequent business volume generated by the medium-sized firm. The corporation, as a form of business operation, is mainly utilized for tax benefits and protection against personal loss of material items owned by the construction company's principal stockholders (i.e., owners). The firm's capital requirements rarely extend beyond those generated via borrowing, personal investment, or company earnings. Therefore, stock issues are available only to the owners or other company employees in a profit sharing mode. The medium-sized firm environment does host a number of partnerships but fewer sole proprietorships. The relative mix of prime contractors to specialty contractors shifts toward the prime contractor as the total volume level expands in the medium-sized firm environment. For example, there are as many specialty contractors in the $3 to $15 million range as there are prime contractors. As the total volumc per firm increases beyond $15 million, the prime contractor becomes the prevalent type. This shift toward the prime contracting firm introduces an interesting development which emerges in the medium-sized firm environment. The prime contractor will rely heavily on specialty contractors whose construction volume is noticeably less than their own. This means that a medium-s&ed prime contractor

* In terms of total dollar volume, the majority of medium-sized firms would fall in the $3 million LO $15 million range. The upper limit of $50 million .would indicate that many firms with substantial dollar volumes operate under the Traveling Project Manager approach to construction management.

The Medium-sized Firm Environment

could employ either a medium-sized specialty contractor or a specialty contractor operating as a small firm. It is quite common to have a small and medium-sized contractor operating on the same project. The advent of this characteristic in the construction industry is the direct result of the industry's mode of operation, whereby the prime contractor must often rely on a specialty contractor to perform a specialized segment of the work. This is often the result of the prime contractor's lack of specified talents in certain areas of construction, as well as difficulty in hiring the highest-quality workers in those areas typically subcontracted (e.g., mechanical, plumbing, etc.). Thus the medium-sized firm relies extensively on subcontractors, many of which are small firms. Medium-sized firms secure a percentage of their projects via competitive bidding and a percentage through owner negotiation with low bidders. The firms whose project capacity gravitates toward the $4 to $15 million size most likely will encounter the public competitive bid-type project,* while those firms whose project capacity is $10 to $20 million and up will encounter both the competitive bid and the low bid negotiation by owner types of situation,? with a small percentage of the work available on a cost plus fee basis. As with the small firm, the more predominant types of construction that prevail in the medium-sized firm range are general building and heavy or highway construction. The principal types, for example, are educational facilities, low-rise commercial office or apartment buildings, highway paving and bridge work, tunnels, and earth dams. Many of these projects are government sponsored and therefore require the competitive bidding format. Alternatively, in the medium-sized firm environment a significant percentage of the projects encountered are privately sponsored, in which case the client can more often rely on low bid negotiation, whereby the initial number of bidders is limited at the client's option. From a select List of bidders, the client will choose the lowest bid submitted. Finally, industrial and high-rise construction will appear in the medium-sized firm category. The historical development of the medium-sized firm is often simply an extension of the small firm's history. Strong family ties often provided both the manpower and continuity which allowed the firm to survive as well as expand through the years. More often, the medium-sized firm commenced with two partners and as it grew and expanded in size from small to medium, the partners' families entered the business, which ultimately perpetuated the firm's name. The family association provided the manpower, with additional partners often providing the necessary capital investment required to expand the firm's dollar volume level and management expertise to cope with a more complex business environment. The entire growth pattern, as described, applies equally to both the prime and specialty contractor type throughout this range in contracting volume. To maintain or increase its dollar volume level, the medium-sized firm must expand its work region beyond that locality that previously supplied

* Projects open to all qualified bidders who decide to submit a bid. P Projects for which only a limited number of bids are solicited from companies selected by the client.

T h e Traveling Project Manager

7.2

ORGANIZATIONAL STRUCTURE OF THE MEDIUM-SIZED FIRM

the majority of their work load. This expansion will either increase the size of the home office facility or introduce the concept of the regional branch office(s). Dissecting the work area into smaller regional areas through branch offices benefits the contractor by two direct means: (1) the branch office promotes the Traveling Project Manager concept by ensuring that the project manager maintains close proximity to the active projects which are his responsibility in that region; and (2) the regional office promotes the localization concept as described for the small firm in Section 6.1. It must be noted that the medium-sized contractor's work region is not so immense that localization no longer prevails. If the work region does expand significantly, the benefits incurred through localization decrease proportionately; that is, the degree of construction reconnaissance necessary will increase proportionately in relation to the contractor's lack of familiarity with the work environment. Hence the regional office concept burgeons in an attempt to reestablish and reaffirm the localization attribute and maintain the Traveling Project Manager approach. The Traveling Project Manager concept is a common and flexible management approach in the construction industry. It is particularly appealing, and satisfying, to company executives who have come up through the field and who have helped carry the firm into the medium-sized firm volume of business, because it allows them, if they wish, to maintain contact with the field. Because the TPM approach is flexible, it can be applied to a broad spectrum of project types, varying considerably in both dollar size and complexity. The organizational structure of the medium-sized firm is a reflection of the TPM concept and the project characteristics of the environment in which this concept emerges. The organizational structure expands to cope with increasing company personnel required to manage the contract volume generated by the medium-sized firm. Management responsibility is dispersed among more decision managers. As a result, the general management functions are more specifically differentiated, so that areas of responsibility can be more efficiently assigned. The administrative and functional relationships between these groups are structured to promote the TPM concept by distinguishing between project oriented functions and functions required to operate a business. Management responsibility at both the company level and project level will be assigned according to this distinction. Consequently, as construction volume grows, executive management will be divested of major project responsibility, which is then delegated to the project manager. The company organization structure of the medium-sized firm is characterized by two typical organization charts, as shown in Figure 7.2. Each chart shows the major functional groups, and contrary to the small firm's organizational approach, the business management, planning and project management, and estimating and procurement areas emerge as separate functional entities. This organizational development is significant because it provides the framework for distinguishing between project oriented functions (primarily project management, planning, estimating, and pro-

Organizational Structure of the Medium-sized Finn

INVESTING

PAYROLL

MANAGEMENT

PROCUREMENT

INVESTING

ACCOUNTING

PROCUREMENT

PLANNING A N D PROJECT

Figure 7.2 Typical administrative organizational charts for rnedum-sized firm employing the TPM management concept.

curement) and the remaining functions, which are oriented toward operating a business.* As illustrated in Figure 7.2, the business management function emerges at the top of the organization chart and is administratively linked to the project functions while remaining functionally isolated. The organization structure as described by these charts further pro-

* Accounting and payroll functions serve a dual role, because they service specific projects while maintaining a business focus.

The Traveling Project Manager

motes the TPM concept because the planning and project management functions become distinguishable areas and can be assigned solely to the project manager. However, the administrative relationship between the planning and project management functions and the other major management functions may vary depending on individual company size. A company with relatively few head office staff personnel (e.g., 7 ) may rely on the type of organization presented in Figure 7.2a. In this case, top-level executive management can maintain a direct reporting line with the project manager because of the direct link to the business management function from planning and project management. This intimate link is important in the medium-sized firm with a limited number of head office staff. If the medium-sized firm employs a significant home office staff (e.g., 2 0 ) , the organization chart in Figure 7.2b could emerge as being better suited to their needs. Direct reporting from planning and project management to top-level management is no longer desirable because too many staff personnel would be reporting to the executive level. T o circumvent this, reporting from project management is funneled through estimating and procurement, in effect limiting the reporting to top management by rcporting through a second-level executive type. Management responsibility is introduced to the organization chart by plotting onto the chart the areas of responsibility assigned to the firm's executives, office support, and field staff. If this is done for the organizational structure of the medium-sized firm, as shown in Figure 7.2b, the result is as shown in Figure 7.3.* In the medium-sized firm, the executive responsibility moves toward the top of the organization chart and other office staff members are assigned broader responsibilities. For example, in Figure 7.3a, the planning and project management functions are shared by the vice-president and other ofice personnel, signifying that the vicepresident is the project manager on a selected number of projects. The vice-president is assisted not only with the project management functions but also with the estimating and procurement functions. He assumes minimal responsibility for the business management function. Conversely, in Figure 7.3b, the vice-president is portrayed as assuming a larger segment of the estimating responsibility. Total responsibility for the planning and project management functions is shifted to other head office staff, as described in Figure 7.3b. This is the ideal division of management responsibility for the TPM concept, with the project manager assuming the Traveling Project Manager role and responsibility for the planning and project management functions. The salient characteristic of these plots is the shift of project management responsibility to staff other than the executives of the medium-sized firm. This divests the president from direct daily project involvement, which means that his primary focus can be business management oriented (i.e., running the business operation). Entering the management picture are decision makers whose focus is limited to specific management functions, such as an office manager executing estimating and procurement functions only. This increase in man-

* Similar plots can be developed from Figure 7 . 2 ~ .

OWNERSHIP INVEST1NG PRACTICING SECRETARY-, TREASURER

OFFICE

I

\

/PRESIDENT

ACCOUNTING

OFFICE \

...A",LCPRFSI~FN-

ESTIMATING PROCUREMENT

I

MANAGEMENT

I

OFFICE STAFF

/ TPM

OWNERSHIP INVESTING PRACTICING SECRETARYTREASURER

CONSTRUCTION

fbJ

Figure 7.3 Management responsibility plot. (a) Vice-president has a minimal executive management role and major responsibility for estimating, procurement, and project management. ( 6 ) Vice-president and secretary-treasurer move into executive management; project management is shifted to project manager.

The Traveling Project Manager

7.3

THE PROJECT TEAM

agement staffing is directly attributable to the larger construction volume generated by a larger and more complex project environment. In this environment the executives cannot remain the principal decision makers in the construction management cycle, but must incorporate other managers into the decision process. In terms of manpower management, personnel other than executive management are delegated primary areas of responsibility. Administrative functions consume a greater portion of higher-level management's daily responsibilities, thus creating functions which are more permanent in nature. In general, the function of each decision maker in the medium-sized firm begins to evolve toward a more specialized focus. The organizational chart dictates the medium-sized firm's basic approach to operating a contracting business by defining both functional responsibility and the authoritative structure of the firm. To manage a specific project, the company must formulate a project team structure which is compatible with the organizational structure and management responsibility, as described in Figures 7.2 and 7.3. The project team defines the structure by which a project will be administered and the decision maker responsible for executing all project oriented functions. Each function delineated on the organization chart will be the responsibility of one or more of the project team members. Typical project team organizations are shown in Figure 7.4. Because the size and structure of the project team varies with the individual project size and complexity, two examples are presented in Figure 7.4. The project team in Figure 7 . 4 ~would be selected for smaller projects wherein the management functions could be performed by a minimum number of staff. These projects are the more conventional projects in terms of complexity and dollar size (e.g., small office building in the $5 to $9 million range). Alternatively, on larger projects ($10 to $20 million) of greater complexity, the number of decision makers expands and a project team similar to Figure 7.46 emerges. In this figure, the estimator is supported by a specialist in quantity surveying. Furthermore, an expediter is assigned to handle the procurement activities. The field staff expands significantly with the introduction of a field engineer and timekeeper, plus numerous craft foremen. The general superintendent is responsible for all field construction and is assisted by several assistant superintendents and the field engineering force headed by a project engineer. The project manager is responsible for all project management regardless of the size of the project team. H e has staff support from the cost accountant and estimator, as indicated by the dashed line between these positions. A functional link (dashed line) between the cost accountant and the project field engineer exists in Figure 7.4b. The interfacing between these staff members is primarily to exchange project data collected in the field. Because some data are not useful to the project manager in its raw form, the data are processed by the accounting/payroll section before the PM utilizes it. The project team of the medium-sized firm evolves around the close interaction between the PM and the key field managers who are involved in manpower management. These managers/supe~isors are continu-

The Project Team

ACCOUNTANT

CIIl

I

HEAD OFFICE

SUPERINTENDENT

FIELD

COST C L E R K

iy

FOREMAN

/ I'

FOREMAN

FOREMAN

I

COST C L E R K

HEAD OFFICE

QUANTITY

/ + I $ SUPERINTENDENT GENERAL

FIELD

ASSISTANT FIELD

PROJECT FIELD ENGINEER

MECHANICAL SUPT'D CONSTRUCTION

I

FIELD

O T H ER FOREMAN

I CARPENTER^ I FOREMAN

FOREMAN

IMEKE EPER

Figure 7.4 Medium-sized firm project team organizations. (a) Project team organization for a small project. ( b ) Project team organization for a large firm.

ously interfacing in order to more effectively allocate manpower and control crew performance. This continuous communication commences prior to actual construction startup and prevails throughout the life cycle of the project. An approach of this nature is beneficial because it allows increased awareness of, and sensitivity to, labor dollar variance, and hence provides the foundations for effective cost control. Furthermore, continuous interfacing aids the field 'managers by ensuring the supply of information that is requisite input for performing those functions related to crew planning and crew management. Finally, active participation in project management by field personnel is a tremendous employee motivator. The relationship between the project team staff and their administra-

The Traveling Project Manager

tive responsibilities in the organization is evident by relating the project team organization (Figure 7.4) with the company organization charts in Figures 7.2 and 7.3. Typical definitions of responsibilities and functions performed by the project manager, estimator, and superintendent are described in Section 6.3 (Table 6.1). T h e responsibilities and functions of the expediter, timekeeper, and field engineer, as defined by the Associated General Contractors of Chicago, are described in Table 7.1. O n TABLE 7.1 JOB DESCRIPTIONS FOR TYPICAL CONSTRUCTION PERSONNEL AT THE MEDIUM-SIZED FIRM LEVEL Expediter A.

General Functions

An expediter may schedule or coordinate job material requirements. He serves as a trouble shooter when there is a breakdown in delivery schedule. He foresees problems by reviewing plans and specifications of the sub-contractors and coordinating these with the plans and specifications of the architect

B. 1.

Detailed Functions

In some companies receives the plans and specifications and breaks the specifications down by trade 2. In some companies writes to all subcontractors advising them what is necessary to do on their plans 3. Follows up on drawings (i.e., shop drawings or the detailed drawings of project) 4. Submits drawings to the architect after having checked them to see if they match, that the job is correct, that the materials used are those specified, and analyzes the dravrings 5. Maintains constant follow-up on plans and drawings to ensure documents reach the proper place at the proper time 6 . Distributes approved plans to subs, or to anyone else who should get them; has to order enough plans from suhcontractors so that entrusted parties will have sufficient documentation for project schedule 7. In some companies establishes delivery time for materials, equipment or labor, based on when they will he required, when they can be acquired and determines the lead time required for acquisition

May follow the C.P.M. printout, make out delivery schedules, use a bargraph method or the Critical Path Method; make sure the shop items are on the Critical Path Method or the bargraph In some companies does small buying such as purchasing mailboxes, signs, finish items Maintains constant follow-up to ensure that schedule is accomplished Checks all incoming tests to ensure they meet specifications In some companies checks the concrete design, that is, the mix or fixed formula of the concrete used Plans material delivery and schedules with job superintendents Keeps in contact each day with subcontractors Writes memos as needed to architects, superintendents, suhcontractors, etc. Follows up daily on trouble areas, that is, those places where delivery of materials may be lagging In some companies accumulates change order information Generally trouble-shoots, especially for delivery problems

TABLE 7.1 (continued)

Timekeeper A. General Functions A timekeeper is primarily concerned with maintaining cost control of the labor force on a project. H e maintains payroll records and may also maintain records on material deliveries

B. Detailed Functions 1.

2.

3. 4.

5. 6. 7. 8.

9.

10.

11.

12.

13.

14.

Ensures that the men are on the job, what specific tasks they are performing and checks this against job sheets given to him daily by the foreman Checks with the foreman to determine exact job and classification of work each man is doing so that the work can be coded and entered against the correct account Walks-the-job a few times a day Computes previous day's work sheets to obtain costs Projects daily costs to determine if work was completed within the allocated budget Talks over costs with the superintendent Posts workers hours to the payroll on a daily basis Types a cost report each week (in some companies this may be done by central office staff Types payroll each week (in some companies this may be done by central office staff) Types paychecks each week (in some companies this may be done by central office staff) Types all back charges and time tickets Estimates costs of requests from subcontractors for sheds, shanties, carpenters and concrete work performed for them May compile subcontractors' invoices for payment and discuss these with architect to determine accuracy Codes all delivery tickets to maintain costs on all building parts

Keeps records of all reinforcing steel deliveries Records all concrete pours May assist superintendent by ordering labor, lumber and other materials On certain big load days may call the union halls for extra men; will sign these men for the day and pay them by check at night Signs up all new workmen (W-4 forms, applications, etc.) and submits originals to central office Enters new employees names on payroll and proper wage rate for the particular trade Types monthly report on welfare and pension (in some companies this may be done at the central office) Balances the payroll and types it each Monday; submits it to the main office so that checks can be made out and returned to the job site by Wednesday (in some companies this may be done at central office) May travel to various job sites and perform same duties for each of the projects On projects involving Federal funds, he collects payroll data from subcontractors for submission to the government in compliance with their regulations Maintains time record on company truck drivers when material deliveries are made May supervise "time checkers" on larger project

TABLE 7.1

(continued) ~p

Mechanical superintendent

A. General Functions The mechanical superintendent coordinates subcontractor's work with that of the general contractor to ensure that project remains on schedule and quality is maintained

B. Detailed Functions 1.

2. 3. 4.

5. 6.

Compiles listing of major mechanical electrical equipment required Expedites shop drawings and equipment deliveries Assists in preparation of project schedules Prepares weekly progress reports on electrical and mechanical work Coordinates subcontractors' work with general contractor Checks schedule to ensure project is on schedule

Supervises general contractor's work done for subcontractors (equipment production, excavations, etc.) 8. Processes and distributes shop drawings 9. Supervises, inspects and evaluates work performed by subcontractors-ensures there is compliance with plans and specifications 10. Supervises project closely to ensure that the owner is getting his money's worth on suhcontractor work 7.

Equipment Superintendent

A. General Functiom Maintains and repairs equipment owned by company. To do this, he supervises garage and yard personnel and coordinates delivery of equipment to the specific job sites and expedites repairs and deliveries

B. Derailed Functions 1. Supervises, maintains and repairs 2. Purchases parts for maintenance and repairs 3. Expedites repairs of equipment that cannot be done in the company garage 4. Keeps detailed records of equipment, including maintenance costs for each piece of equipment 5. Keeps track of equipment (i.e., which job is using it at any given time)

Makes recommendations concerning purchase of new equipment 7. Provides delivery of equipment to job sites, helping to plan the time, means of delivery to the site, and equipment set-up at site 8. Keeps weekly repair costs on his crew 9. Prepares an annual budget for operation 6.

Scheduling Engineer (Field Engineerp

A. General Functions Scheduling engineer schedules and coordinates. He serves as a trouble-shooter when there is a breakdown in delivery schedule. He maintains a constant follow-up on the schedule to ensure progress as previously planned

Manpower Management Functions at the Medium-sized Firm Level

TABLE 7.1 (continued) B.

Detailed Functions

1.

Receive.. plans and specifications and breaks them down by trade Writes to all subcontractors telling them when it is necessary on their plans Expedites follow-up for drawings, that is, shop drawings or detailed drawings; checks with his own staff for follow up Keeps a close follow-up to ensure that plans and drawings reach the right people at the right time Establishes delivery times for materials, equipment, or labor, based upon when they can be acquired and determines the lead time required for acquisitions

2.

3.

4.

5.

6. Makes out delivery schedules, using a bargraph method or Critical Path Method; makes sure that the shop items are on the bargraph or CPM 7. Discusses material delivery and scheduling with job superintendent 8. Keeps in touch with subcontractors as needed 9. Writes memos as needed to superintendents, subcontractors, etc. 10. Follows up daily on trouble areas, where delivery of materials may be lagging 11. Generally trouble-shoots

Source: "1970 Management in the Construction Industry-Handbook for the Construction Manager," The Builders' Association of Chicago, Inc., North LaSalle Street, Chicago, Illinois 60601. a The scheduling engineer is considered functionally equivalent to the field engineer shown in Figure 7.4b.The Field engineer designation is added to this table by the authors.

7.4 MANPOWER MANAGEMENT FUNCTIONS AT THE MEDIUM-SIZED FIRM LEVEL

larger projects, the job superintendent's functions and responsibilities may be delegated to several assistant superintendents in charge of specific areas. For instance, a project team may include an equipment superintendent and/or mechanical superintendent. The typical functions performed by these staff members, as defined by the AGC of Chicago, are also described in Table 7.1. The construction and management environment of the medium-sized firm is significantly different to that of the small firm, and this difference is reflected in the number of manpower management functions used by the medium-sized firm and by the manner in which these functions are performed. The increased size and complexity of .projects met at the mediumsized firm level, in comparison with those met at the small firm level, is usually reflected in terms of the need for larger field work forces, an increased specialist type work content, and the use of more subcontractors. Whether the medium-sized firm contractor carries more experienced and specialist crews or not, the scheduling and management of field labor crews and work progress predictions become dominant management problems. At the same time there is an increased awareness of the needs for, and the benefits to be gained from, increased management involvement in field construction efforts. A common management solution at the medium-sized firm level is to -

The Traveling Project Manager

use the Traveling Project Manager approach to project management. In comparison with the small firm the number of project manpower management functions performed by the medium-sized firm increases because the complexity of the project environment demands more detailed information and management sophistication. Thus more functions are performed (both in specific form and frequency) and are performed at both the head office and field site levels because of the role of the Traveling Project Manager. The medium-sized firm begins to SCHEDULE AND ALLOCATE MANPOWER BY TRADES (functions S3 and A3) because of the project's manpower requirements in critical trade areas. In addition, the coordination of a number of specialty subcontractors adds to the need to get a fix on trade manning requirements before construction commences and in the formulation of policies to be followed during WORK FORCE MANAGEMENT (function W3) once field construction has begun. The increasing importance of the specialist and critical trade work content in the medium-sized firm's projects calls for increased accuracy in the unit cost cstimating for all the various field activities. In order to establish and continuously update this highly specialized focus of unit cost estimating, the medium-sized firm begins to formally document LABOR PRODUCTIVITY (function R5), and to perform limited ACTIVITY ANALYSIS and PROJECT FORECASTING (functions M3 and M4). Thus at the medium-sized firm level the elements of a systematic and integrated field labor costing system becomes a feature of project management. In order to implement the field labor costing system, the relevant management functions (M6 and R6) are more accurately established and evaluated (M5, R5, and M 4 ) . In this way PROJECT FORECASTS (M3) arc projected ahead to project completion using latest period unit labor cost information. The medium-sized firm does not normally employ the work package approach; hence the functions related to this concept are not performed. As discussed in Section 6.3, the work package concept addresses the management problems encountered with large complex projects (see Chapters 8 and 9). The manpower management functions considered by the authors relevant to an understanding of the modus operandi of the medium-sized firms are shown in Figure 7.5.*The composite listing of these functions represents those most commonly applicable to the TPM management approach to project management. Although the number and range of manpower management functions performed at the medium-sized firm level is not much greater than those performed at the small firm level, significant differences exist in both the manner in which these functions are performed and in where they are performed. Because of the management attitude that produces the Traveling Project Manager, a considerable number of manpower management functions are performed in both the head office and field environments. "The thirty-nine functions have been extracted from the forty-six ideal project Manpower Management Functions chart of Figure 2.7, and are presented iq Figure 7.5 in the same relevant tabular positions.

PLAN P

WORK W

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W1 RELEASE STAFF TO PROJECT

PI CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

2

P2 ACTIVITY DEFINITION

52 ESTABLISH CONSTRUCTION SCHEDULE S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

4

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES

P4 ESTIMATE LABOR CONTENT

5

S5 DEFINE CURRENT PROJECT STATUS

A5 ADJUST CREWS

P6 DETAILED FIELD QUANTITY TAKEOFF 7 P7 ESTABLISH CREW REQUIREMENTS 8 P8 PLAN WORKFACE LAYOUT

S6 REVISE CONSTRUCTION SCHEDULE 57 SCHEDULE PROJECT CREWS

A6 ASSIGN INDIVIDUAL WORK TASKS

6

L 0

ALLOCATE A

1

3 P3 QUANTITY TAKE-OFF

P

SCHEDULE S

RECORD R

MONITOR M

W2 PRE-JOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

R1 HISTORICAL DATA BASE

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS

M4 ACTIVITY ANALYSIS M5 LABOR ANALYSIS

RS LABOR PRODUCTIVITY

W6 SOLVE HUMAN RELATIONS PROBLEMS W7 lNITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

M6 WORK PROGRESS

R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

M8 FIELD INSPECTION

Fignre 7.5 Ideal manpower management functions in Traveling Project Manager management approach-mediumsized firm.

The Traveling Project Manager

7.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT

In addition, these functions are rarely performed by a single staff member in an independent or autonomous manner. Instead, most of the functions involved in the TPM approach to project management are performed jointly, by both head office and field management, in a manner designed to closely link them together. This integration of effort in the performance of each management function is accomplished by the role of the TPM. He repeatedly interacts sequentially with both field managers/ supervisors (such as the superintendent and foremen) and head office staff (such as the estimator, expediter, etc.). Although most of these personnel are physically separated, the frequency of consultation and discussion that results from the TPM management approach ensures an effective collaboration and integration of staff efforts in the performance of these functions. The primary organizational and managerial objectives of the TPM approach to project management is the effective linking of head office and field construction management into a closely knit project team and the integration of their management efforts. This is achieved by the introduction of the TPM into the project team and through his efforts the cooperative performance of many management functions at all stages of project management. In terms of manpower management functions, the TPM management approach ensures that field managers (i.e., the TPM and superintendent) assist in the performance of (many project oriented) head office functions, and especially on large projects, head office staff assist the TPM in the performance of field coustruction functions. Thus it is not surprising that the functional plots of medium-sized firm staff members exhibit a close integration (and often an interpenetration) of their (often joint) performance of management functions at all stages of project management. Typical allocations of manpower management functions to project team members operating in the TPM management approach of mediumsized firms (as shown by their functional plots) are portrayed in Figures 7.6 and 7.7. Figure 7.6 represents the division of functions to those personnel assigned to the project team shown in Figure 7 . 4 ~ .Alternatively, the project team members depicted in Figure 7.4b assume the functions portrayed in Figure 7.7. The actual division of functions may vary slightly depending on specific project size and complexity, and the management capacity of the firm. It would not be uncommon, for example, for the project manager to assume a dual role as both the PM and estimator for some projects. This would probably occur most often on smaller projects and would depend on the existing project portfolio of the firm. It is, however, uncommon at the medium-sized firm level for the project manager to assume such a dual role for all his projects. This does not keep the project manager from working closely with the estimator when preparing the estimate for a project, in which case several head office planning functions might also appear within the PM's realm of responsibility. Thus it must be emphasized that Figures 7.6 and 7.7 represent only an ideal division of manpower management functions for the medium-sized firm. The hierarchical nature of the management plots in Figures 7.6 and 7.7

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

Figore 7.6 Ideal division of manpower management functions for Traveling Project Manager approach (medium-sized firm) using the project team of Figure 7 . 4 ~ .

MONITOR M

RECORD R

Figure 7.7 Same as Figure 7.6, but using the project team of Figure 7.46.

Management Roles in Manpower Management

105

is exhibited in a number of ways. First, for the head office project team members there are clear staff relationships between the project manager and both thc estimator and the cost accountant; at the same time they have line (or staff) relationships, together with the executive manager, with those managers higher in the company structure who are concerned with business functions. The functional plots and organizational relationships of the project manager, estimator, cost accountant, and executive manager should be contrasted with those for the project manager and estimator of the small firm (see Figure 6.7), where these two latter individuals often represent the entire top management team of the small firm. The traditional line structure of the fieldstaff is still very evident in the overlaying functional plots of the project manager (i.e., TPM), superintendent, foreman, and crew. On larger projects (as indicated in Figure 7.7) additional line structures develop for both head office and field staffs. This is illustrated by the functional plots for the estimator and quantity surveyor, cost accountant, and cost clerk. In the field some of the functions and chores associated with the project manager and superintendent (see Figure 7.6) are relieved by the field engineer and timekeeper (see Figure 7.7), thus enabling these former managers to devote more of their time to the management planning and control of field operations. The Project Manager's rolc in manpower management assumes a greater field focus for the mcdium-sized firm. His responsibilities in initial and overall project definition and project management diminishes while his responsibilities increase in the construction phase. This can be seen in the plots; the executive manager and estimator (who are more senior staff) assume major roles in these phases and the TPM can call on the services of the project superintendent in the head office planning and scheduling efforts. In the field the TPM enters more directly into the planning of trade and crew requirements and in the monitoring of LABOR PERFORMANCE and FJELD ACTIVITY ANALYSIS. The interfacing between the head office and field is apparent from the overlapping of management roles in executing various functions. The superintendent participates in scheduling and monitoring at the head office level (functions S1, S2, S3, M4, and M5). In turn, as shown in Figure 7.6, the PM works closely with the field managers in crew planning and management (functions P6, P7, S6, W6, and M6). These features of the MMF plots are a direct expression of the TPM approach. The project manager's responsibility focus expands on smaller projects. Conversely, on larger projects, where the number of field manager/supervisors increases (see Figure 7.46), both the PM and the superintendent's responsibility focus become more specialized. In Figure 7.7, the field engineer supports the PM and superintendent in the area of progress reporting and field scheduling, while the timekeeper primarily assists the field engincer and superintendent in monitoring and recording labor hour expenditures. This divests the PM and superintendent of the time-consuming responsibilities of monitoring and recording actual progress data, in effect providing more time for analysis and control. In both plots the concentration of

The Traveling Project Manager

responsibility lies heavily with the project manager, job superintendent, and foreman. It should be emphasized that the project manager, pursuant to his administrative position, will assume major project management responsibility without being inundated by many other general management responsibilities. This begins to obviate the management function overloading that exists at the small firm level. The description of the functional plot for the foreman at the mediumsized firm level would be more or less identical to that of the foreman in the small firm (Section 6.5). Similarly, the description of the superintendent role as described for the small firm would be similar in the mediumsized firm. However, the superintendent gains additional functional responsibilities as a result of the TPM approach and the emergence of an integrated labor unit cost control system. These changes were discussed in the preceding section. The role of the project manager has changed dramatically, as discussed in this section. Thus the remaining paragraphs will focus on the new project team positions that emerge, such as the timekeeper, field engineer, cost accountant, and exzcutive project manager. The Timekeeper's role in manpower management focuses primarily on the monitoring and recording of labor hour expenditures (M7 and R7). This includes the collecting of time cards and the summarizing of hours worked. He must also verify the hours worked on a daily basis and cost code the hours on each time card. The timekeeper also summarizes the total manpower by craft on a daily basis. The timekeeper has a good working knowledge of the project cost codes and can relate a cost coded work task to the physical component of work. He must be familiar with the various crews and personally know the foremen. The timekeeper may also assist with payroll in terms of processing payroll information in the head office. The timekeeper position emerges on the larger projects at the mediumsized firm level. The functions he performs are handled at the small firm level by the superintendent and foremen. The timekeeper in this project team structure (Figure 7.4b) reports to the superintendent through the project field engineer. The functional plot of the timekeeper, depicting his job description in terms of manpower management, is shown in Figure 7.8. Notice that only those functions that he performs are illustrated.

I

I

TIMEKEEPER M7

RESOURCE USE

Collects: Verifies: Determines:

time cards hours worked and type of work per employee total number of employees by craft

R7

LABOR HOURS

Assigns: Develops:

cost code to work task categories manpower tally report

i Figure 7.8 Typical timekeeper manpower management job description plot (from Figure 7.7).

107

Management Roles in Manpower Management

The Field Engineer is involved with many aspects of the construction process. In relation to manpower management, his functional role in field analysis is to support crew planning (P6) and work progress and performance analysis (M6 and R6) management efforts. Consequently, the field engineer works extensively with specifications and drawings and has a sound practical construction background. He also checks that proper cost codes are being assigned to labor hours. The field engineer must also be proficient in scheduling techniques, because he often assists the project manager and superintendent in the field scheduling of work activities (S5 and S6). This requirement follows from his ability to read and translate drawings and specifications into construction activities. This scheduling responsibility ensures that he also assumes a coordinating role with the project subcontractors. The field engineer's functional plot shown in Figure 7.7 is expanded in Figure 7.9 only in terms of the duties he performs in relation to each manpower management function within his plot. The Cost Accountant position in manpower management at the mediumsized firm level shows a professional growth pattern up from that of the office support personnel position in the small firm. The cost accountant is usually a professional with some technical or accounting background. In the manpower management area, he is functionally responsible for PROJECT COST ACCOUNTING AND PAYROLL (R3) and some aspects of PROJECT FORECASTING (M3). He develops and maintains HISTORICAL LABOR DATA FILES AND RECORDS (R1 and R23. Generally, the cost accountant is responsible for the development and operation of any company computerized payroll and cost control systems. In this capacity, he will work closely with the project manager, and accordingly his functional plot may enlarge to include the development and analysis of the labor unit costing information system (M4, M5, and R5). The performance of the cost accounting functions on larger projects

r

3 FIELD ENGINEER P6 DETAILED S5 DEFINE FIELD QUANTITY CURRENT TAKE-OFF PROJECT STATUS Evaluates: quantity content for work task materials Evaluates: any technical engineering problem

Analyzes: activity status Analyzes: subcontractors' status

\

R6 QUANTITIES IN PLACE

M6 WORK PROGRESS Determines: physical quantities placed Evaluates: percent complete per activity Inspects: quantities to complete

56 REVISE CONSTRUCTION SCHEDULE

Records: quantity status Documents: daily activity

/

Revises: activity completion dates

L Figure 7.9

J

Typical field engineer manpower management job description plot.

I

I

I

The Traveling Project Manager R1 HISTORICAL DATA BASE ~ e x ~labor s : unit cost base combined from many projects for components of work -

R2 GENERATE LABOR MANAGEMENT DATA Generates: labor unit cost file by work tasks from each project COST ACCOUNTANT

M3 PROJECT FORECASTING

R3 PROJECT COST ACCOUNTING

Develops: labor cost accounting system (payroll etc.) Maintains: labor cost accounting systems

Develops: labor cost prediction system Maintains: labor cost prediction system

L

1

Figure 7.10 Typical cost accountant manpower management job description plot.

often requires the assistance of timekeepers and cost clerks. The functional plot of the cost accountant in Figure 7.7 can be expanded to reflect the duties he pedorms. This plot is illustrated in Figure 7.10 and covers only those duties relevant to manpower management. The role of the Executive Project Manager has a top management focus on a project basis. He assigns and releases staff to the project, reviews summary level project status and cost performance reports, and makes decisions critical to the project's direction and as the need arises. How-

>

f EXECUTIVE PROJECT MANAGER A1 ALLOCATE OFFICE STAFF Designs: project team Assigns: project manager, estimator, cost accountant A2

ALLOCATE FIELD STAFF

Approves: field superintendents, field engineers, etc. Approves: functional responsibility of each

W1 RELEASE STAFF Releases to job: project manager, estimator, cost accountant W2

M1 SUMMARY PROJECT REPORTS Reviews: project status and labor cost predictions Enters: critical decision problems

PRE-JOB LABOR CONFERENCE

Enters: sensitive union problems Solves: subcontractors disputes/problems

Figure 7.11 Typical executive project manager manpower management job description plot.

Management Roles in Manpower Management

109

ever, on larger projects the executive project manager may develop a project team organization to match the complexity of the project. The executive project manager enters sensitive industrial relations problems whenever union labor problems are involved and reviews subcontractor problems as requested. He performs functions previously within the management plot of the project manager of the small firm. His changing role begins to emphasize the professional expertise and focus required of top management. The executive project manager is a partner or an executive in the company and therefore has both a business and a construction background. His detailed duties in manpower management as shown in Figure 7.11 are plotted within his MMF plot from Figure 7.7. In summary, the managerial roles of the project team at the Traveling Project Manager level assume a more professionally focused aspect than those of the PTC level of the small firm. This increasing professionalism is emphasized by the emergence of specialists performing functions in delegated areas of authority. The project management approach of the medium-sized firm can then be considered as the beginnings of a professional oriented approach to project manpower management.

CHAPTER

8

The Project Team Structure: Field Based Project Management

All project team structures can be described in terms of the relationships between the project team components of project definition, field construction management, and project management. As indicated in Chapter 6, the embryonic project team structure that results from the separation and virtual independence of these components can be seen in practice at the small firm level when head office management personnel are prevented by work overloads from maintaining close and continuous contact with field operations. Once head office management can free their attention for close field supervision aimed at linking the field construction management and project management components, the possibility exists for the development of an integrated project team structure between these components. A common and practical solution to this project team structure is that produced by the Traveling Project Manager. As indicated in Chapter 7, these components are effectively linked and integrated by the rapidity and frequency with which field problems can be detected, considered, and solutions decided at the head office level and transmitted to and implemented in the field. A natural development of the project team structure is to base the project manager in the field and to support him by carrying into the field project team personnel capable of performing many project management functions otherwise normally handled in the head office. The project size and management environment that encourages this development in the project team structure is generally met at the large firm level in the construction industry. A general schematic representation of this project team structure and the relationship between head office and field based components is shown in Figure 8.1 (reproduced from Figure 5.3) for reference. The relationships in Figure 8.1 focus specifically on the separation of basic project oriented functions and the nature of information flows that link the head office and field based functional groups. This chapter discusses the large firm environment and common organizational structures that exist at the large firm level and relates them to

The Large Firm Environment

I

ENGINEERING A N D .I.DESIGN ..................................i DEVELOt'MPhhT

i

CONTINUOUS HEAVY DATA BASED INFORMATION FLOW

i

HEAD OFFICE

-

PROJECT DEFINITION

FIELD LOCATION

PROJECT DEFINITION-FIELD OFFICE

PLAN-Estimate development

SCHEDULE-Detail work schedules ALLOCATE

Deta~ledmanpower {planning SCHEDULING AND MANPOWER GUIDELINES

0

-:a ai9 HISTORICAL DATA FLOW

i.%-

i

....: 2

PLAN-Engineering md Desip Dnrelopmenr

................... iz

b:z

v.

PROJECT MANAGEMENT

zi 2 . . . MONITORIRECORD-Engineering/de.sip m d rtotur

progress

C

mi2

RECORD

Historical data development Data processing for field

PLAN SCHEDULE

Number of crews and adjustments

WORK

Crew action and labor relations

MONITOR RECORD

SCHEDULE

I

THE LARGE FIRM ENVIRONMENT

I

CONTINUOUS SPECIAL INFORMATION FLOW

Figure 8.1

Detailed crew planning and scheduling

ALLOCATE

N T R dO :D R :1

3; 5

f

) )

Crew management Field monitoring

1-

J

ACTIVITY DATA FLOW

PROJECT MANAGEMENT-FIELD OFFICE

and approvals

8.1

FIELD CONSTRUCTION

)

Progress and status and data processing

- Status and revire

f

Project team structure: Field Based Project Management.

the Field Based Project Management concept of the project team structure. Later sections introduce the specific manpower management functions relevant to this mode of operation and relate them to the roles performed by the variety of specialist construction personnel found emerging in the large firm environment. The Field Based Project Management approach emerges in a construction environment characterized by: Large and complex projects that are engineering-oriented and highly technical in nature. Projects that are located in isolated areas and/or near client offices and operational areas.

Large project labor forces are involved, including many highly specialized trades.

An engineering, design and construction life cycle up to ten years in duration.

In this environment, the typical project size could range from $60 million upward, implying that total company volume i s well in excess of $100

Field Based Projed Management

million. The size of the company's portfolio of projects varies significantly with project type and the specialized nature of the firm's area of business. The number of projects in the portfolio of projects also fluctuates tremendously with the economy. T o manage projects of the magnitude described above, the firm's organizational structure and project approach changes dramatically from the medium-sized firm. The number of decision makers increases sharply and each becomes specialized within a given functional area. The generally heavy engineering content of these projects creates the need for two project team levels, one to engineer and design the project, and the other to construct the project. The pure construction firms operating in this environment would have construction capabilities similar to that of the construction facet of the design-construct firm at both the head office and field levels. The number of firms operating at the large firm level is probably in the low hundreds and includes design-construct firms, industrial firms that house complete design-construct practices, and pure construction firms, with the majority of firms being design-construct. The design-construct firm has an additional advantage, because it can operate in either the design-construct or design and construction modes. Another common practice at this level is for the firm to design the facility and then act as the construction manager and manage the construction of other contractors. Although there are fewer firms in the large firm category, the competition for each project remains severe, because fewer projects are available. Furthermore, the size of each project must be considered in terms of its financial and resource impact on the company. Because many projects in this category require enormous engineering and construction forces, the number of projects in the large firm's portfolio must be continuously geared to company size and anticipated growth patterns. The common types of design-construct projects are those in the heavy and industrial construction area, and include nuclear power plants, chemical processing plants, manufacturing plants, sewage plants, and mining and ore processing plants. These facilities are predominantly engineering oriented. Their technical nature and complexity results in project dollar magnitudes that are significantly higher than those for most projects. For instance, a nuclear power facility could cost over $2.0 billion for a twounit station. Building construction is another type of construction in the large firm area and includes multimillion-dollar high-rise commercial office buildings, sports complexes, and so on. Although these projects requi~esignificant engineering capabilities, in many cases the main thrust is on the structure's architectural features. In total, the large firm category appropriates a significant percentage of the total construction dollar volume in the U.S. construction industry.* The corporation is the only feasible and realistic mode of operation for the large firm. As a corporation, the firm generates the majority of their funds through retained earnings and stock issues to the general public

* Many

companies in this environment operate in foreign construction markets.

The Large Firm Environment

and to company employees on a profit sharing basis. Some long-term debt financing h a y be incurred, but it is not a significant percentage of the total corporate financing picture. The general size of the designxonstruct firm's engineering employment force often extends into the thousands. The number of key salaried personnel is not readily obvious because the size of the employment force and company structure generally necessitate a multitiered management structure in order to effectively coordinate the activities of the engineering disciplines encountered. In most cases each project requires a variety of engineering skills in broad and diverse specialized areas of engineering, such as mechanical, electrical, power, and construction. The designxonstruct corporation is often divided into subsidiaries, each with a specialized capability to design and construct a type of project. For instance, a designxonstruct firm could have a subsidiary that specializes in power plants and/or process plants. The subsidiary normally operates as an autonomous entity capable of performing complete engineering, design, and constmction functions. The large pure construction firm may not be divided into subsidiary corporations but rather into divisional offices. Each divisional office is capable of executing the construction process and acts autonomously in this effort. The organizational structure of the divisional office would be a mirror image of the corporate headquarters with the exception of corporate-level management operations. The majority of the construction dollars gencrated in the large firm range are from the private sector. Typical dientele are the utilities, petroleum, manufacturing, mining, and metal companies, and corporate organizations responsible for commercial high-rise buildings. Public agencies also sponsor many projects in these categories, as well as for water and sewage treatment services. Each client is related to a segment of the industrial, building, or heavy construction area and solicits business from those large firms most closely attuned to their work. As an example, a utility company is more directly associated with power plant construction and therefore would seek a firm that has demonstrated the capability to design and/or construct power facilities. The large firm has the capability of utilizing its own construction force (direct field labor) or employing the expertise of a specialty contractor's labor force. This depends upon the nature and type of work under consideration. The larger industrial projects have major permanent plant items that are highly specialized and cannot be installed by the prime contractor. Thus the prime contractor must rely on a subcontractor or the equipment vendor to furnish the necessary labor and expertise for installing the equipment, such as the steam generating system for a power plant. The large prime contractor consistently utilizes the expertise of the small and medium-sized firm contractors. The prime contractor is the major type of contractor in this category, because there are few specialty contractors that can generate the high volume of work associated with the large firm environment, with the possible exception of the vendor supplying material and labor for major equipment items.

Field Based Project Mamgement

The contractual relationship between the large firm and their clients is most likely to be one of two forms: (1) project cost plus a fee or (2) a fixed price. However, the majority of the projects these firms construct are negotiated contracts on a cost-plus-fee basis for one or more of the following reasons: 1. The dollar magnitude of an individual project makes competitive bidding infeasible. 2. Only a select number of firms are capable of performing these specialized projects. 3. Each project contains a sufficient number of unknowns which makes cost-plus contract the only feasible contract. 4. On design-construct projects, time savings associated with overlapping the design-construct phases is high.

8.2

ORGANIZATIONAL STRUCTURE OF THE LARGE FIRM

The fixed price contract is the exception rather than the rule. When the client requires a fixed price contract, the client generally negotiates with a selected number of firms and only requests bids from those firms. If a large firm accepts a fixed price contract, any client changes to the scope of work are well documented and added to the cost of the project. Designconstruct firms rarely pursue work on a fixed price basis because of the inherent risks involved. The large pure contracting firm is an extension of the medium-sized firm. It slowly expanded its volume through competent and successful projects and thereby moved into the large firm category. In addition, the large firm extends its work area through division offices and the capability of operating in remote areas. In comparison, the g~owthof the designconstruct firm is commensurate with the growth of the markets in which it participates. For instance, as industrial firms expand their capacity to meet increasing consumer demands, the industrial construction industry expands correspondingly. This expansion in capacity is accompanied by new technologies that continuously make designs more technical and complex in nature. The design-construct firm was probably founded as either solely an engineering or a construction enterprise. On recognizing the need for dual capabilities, engineering and construction firms began to emerge. Often, the engineering firm would attempt to expand its expertise and slowly enter into the construction phase of their work. The net effect was a facility constructed under the direct supervision of those engineers responsible for the design, with the subsequent advantage that changes in design could be incorporated into the facility even after construction had commenced. By controlling both the design and construction phases, the firm develops an expertise that is seldom obtainable by the pure construction firm. The construction environment of the large firm is the key factor in the development of its organizational structure. Larger projects, normally in terms of enormous dollar volumes, demand significant increases in both project team manpower and direct field labor manpower. Furthermore,

Organizational Structure of the Large Firm

115

the technical nature and complexity of each project introduces requirements for specialized expertise in areas not previously encountered or required in the construction environments of the small and medium-sized firms. The large firm's requirements for significant manpower levels and specialized expertise raises the considerable manpower management problem of integrating a large complement and variety of manpower in a manner that satisfies the needs of each project in the company's portfolio and the business operation of the company as a whole. The organizational structures that develop at the large firm level in response to this construction environment illustrate a number of organizational management principles that focus on organizational development concepts and the organization's ability to cope with rapid expansion and redeployment of large numbers of key staff and personnel. These principles and concepts will be related to typical illustrations and examples and presented in the following paragraphs. The construction environment, because of the size and technical complexity of the projects, creates a demand for a different management focus at the large firm level. This changing management focus results from the fact that the range of expertise requir6d at the top management and project levels is beyond the capacity and/or experience of individuals. The professional management and technical expertise within the company is limited in terms of both the person's exposure and capacity to operate in more than one functional area. Hence a clear distinction and separation between all general managzment functions, whether business oriented or project oriented, becomes more relevant to the operation of the business. The executive and business management functions (i.e., investing, ownership, practicing, marketing, corporate administration and financial) acquire a full-time management emphasis that is not required of firms in the small and medium-sized construction environment.* The project functions [i.e., project management, planning, estimating, construction, and engineering (where applicable)] must then provide the specialized expertise, talents, and manpower required for all company projects as demand dictates. The application of the principle of limiting management experience, exposure, and absorption capacity is illustrated in the company organizational structure of the large firm in two ways: first, by the separation of top management business oriented function from all engineering, project support, and project management functions; and second, by a vertical division between departments based upon technical, project management, and general project support functional areas. This can be illustrated by analyzing the organizational structures of a typical pure construction firm and a design-construct firm in the large firm category, as shown in Figure 8.2. In Figure 8.24 the business management, financial (accounting and payroll), and corporate administration functions are distinctly separated on the organizational chart of the pure construction firm. The project *The exception to this rule is that several accounting functions are also performed on a project basis.

Field Based Project Management OWNERSHIP INVESTING

0 PRACTICING

I CONSTRUCTION

ADMINISTRATION fa)

INVESTING

rl PRACTICING

I CORPORATE

I

PROJECT MANAGEMENT

I

ENGINEERING1 DESIGN

fb)

Figure 8.2 Organization chart for large firm. (a) Pure construction. (6) Designconstruct.

functions (procurement, engineering, project management) are also separate functional areas and are realigned to provide specialization in these areas. For example, the procurement function becomes increasingly specialized, because the procurement effort for projects in the large firm environment often requires continuous surveying and contact with all available product markets in the United States and foreign countries. A highly trained and qualified procurement force is required to completely explore these markets, purchase materials and permanent plant equipment, and then expedite them to many different job locations. As a further illustration of changing organizational structure, engineering becomes a functional category that encompasses both the planning and estimating functions (see Figure 8 . 2 ~ ) .Project management becomes a functional area on its own, with responsibility for construction.

Organizatioual Structure of the Large Firm

117

There is a twofold rationale behind this organizational change. Larger projects intensify the demands for effective project management and increase the requirements for technical engineering in such areas as cost control and planning. The managers involved in project management cannot afford thc heavy commitment to performing the planning, scheduling, and cost control functions, because a greater percentage of their time is dedicated to client interfacing; establishing project directives, policies, and procedures; and problem solving. Thus the project management level must rely on other disciplines to perform scheduling and cost control functions, which were previously incorporated under the project management group. In contrast to the pure construction firm, the organizational chart of the design-construct firm in Figure 8.2b depicts a complete functional autonomy for each general management function. Furthermore, it includes the addition of the engineering and design facet necessary for this type of large firm. The lower tier of fnnctions are the project oriented functions, whereas the upper tier of functions, excluding procurement, are business oriented. I t is interesting to note that the project management and construction functions are also split into two areas, each responsible to the executive level. This further stresses the need for a heavy commitment to effective project management and the establishment of a strong construction group to complement the engineering and design facet. In the large firm environment, the cultivating, integrating, and organizing of a large complement and variety of professional managers and technical experts in a manner that satisfies both business and project oriented functions is a significant management problem. The problem is solved by the finer division and separation of responsibilities required as a result of the growth of specific technical and professional expertise in all areas of company operations. This finer division of responsibility is implemented by creating a suborganization structure uniquely segregated into functional areas which, because of their size, are signified as departments. The departmental breakdown is consistent with the general management functions but are of necessity dissected into more finite components. A further vertical breakdown within each general management area is likely to occur but will differ from company to company depending on the technical expertise required, the type of construction practice performed, and the specific size of the company. In this environment, management expertise and responsibility is widely dispersed throughout the company and within each department. The departmental organizational principle is introduced to the organization charts in Figure 8.2 by identifying management positions associated with each functional category. As a result, a management oriented organizational structure would appear as shown in Figure 8.30 and b. The ownership, investing, and practicing functions in both organization charts are the full-time responsibility of the board of directors and president. These executives are rarely involved with specific projects except to review critical items such as project cost estimates, to assist in problem

Field Based Project Management

1

BOARD OF

oREcToRs

/

9 PRESIDENT

VICE-

CONSTRUCTION MANAGER

1

BOARD OF DIRECTORS

1

'7 PRESIDENT

I

VICEPRESIDENT MARKETING

VICEPRESIDENT ADMINISTRATION

PRESIDENT PROJECT MANAGEMENT

PRESIDENT ENGINEERING

COMPTROLLER

PLANNING A N D

PRESIDENT PROCUREMENT

CONSTRUCTION

See Figure 8.4b

Figure 8.3 Management responsibility plots. (a) Large pure construction firm. (b) Large deSignW20n~t~ct firm.

solving under critical circumstances, and/or client interfacing. The business management and project oriented functions are the responsibility of those managers aligned with a specific functional area or department. The vertical breakdown of professional and technical expertise within a department is illustrated in Figure 8.4. The engineering department of the pure construction firm,as shown in Figure 8.4a, is comprised of three sections: estimating, contracts administration, and engineering. These sections are the responsibility of technical managers, often called assistant managers, section chiefs, or supervisors. Each of these managers has a staff of personnel from which project assignments are made. The division managers report to the department

Organizational Structure of the Large Firm

*Ipq ENGINEERING

ADMINISTRATOR

SURVEYORS

+I ENGINEER

ENGINEERS

Li

PLANNING ENGINEERS

1

PRESIDENT ENGINEERING

5[

CONCEPTUAL ENGINEERING AND DESIGN

ENGINEERING SPECIALISTS

I -

POWER

f

-

STRUCTURAL

SPECIALISTS

ELECTRICAL

ASSISTANT MANAGERS

SUPERVISORS

7

DRAFTSMEN

Figure 8.4 Engineering department organization. (a) Large pure construction firm. (6) Design-construct firm.

m a n a g e r , d e f i n e d a s the m a n a g e r of e n g i n e e r i n g in t h i s figure. H e , in turn, r e p o r t s to the p r e s i d e n t of t h e c o m p a n y . T h e e n g i n e e r i n g d e p a r t m e n t of a d e s i g n - c o n s t r u c t firm ( F i g u r e 8.4b) normally c o n t a i n s a v a s t array of d i v i s i o n s . T h e s e d i v i s i o n s c o r r e s p o n d to t h e various s p e c i a l i s t e n g i n e e r i n g f u n c t i o n s r e q u i s i t e to t h e c o m p a n y ' s l i n e of business. For e x a m p l e , a c o m p a n y that d e s i g n s and c o n s t r u c t s

Field Based Project Management

electrical power generating stations would have a power division, stmctural division, electrical division, and others. These divisions would have an organizational sequence similar to that shown for the structural division in Figure 8.4b. Consequently, a further dissection of responsibility emerges within each division of such large firms mainly because of the large number of technical engineering and design personnel demanded for the projects. The vertical reporting lines are rolled up from the engineers and designers of a division, to the division managers, to the department manager, who is ultimately responsible to the president for the performance of the engineering department. All departments within n large firm are governed by the policies and procedures set forth by the executive component of the company. However, the individual departments do act autonomously in designing, structuring, and administering their own departmental policies and procedures provided that the department philosophy is in line with the company's overall directives. This management principle of organization results from the requirement for specialized technical expertise, thc need to cultivate this expertise, and the ability to have rapid expansion and reduction of personnel to support the company's projects. The manager of engineering in Figure 8.4a and the manager of structural engineering in Figure 8.4b would design and structure the organization charts of their departments or divisions. This would include, for example, the determination of lines of authority, the types and numbers of professional and technical positions, and the authority and responsibility assigned to each position. Each of the department managers would also have the responsibility for administration of their own manpower and of finding and training the manpower to be supplied to each project. The department organizational concept enables the department manager to develop and cultivate levels of professional management and technical expertise which facilitate the growth of the project team. The department concept further promotes specialization in which employees can cultivate an area of expertise, but with a limited exposure and management capacity in relation to project management. This specialization characteristic becomes important when a project team is formulated, because the project team is by definition a collection of personnel, each specializing in a particular functional area of project execution and management. Thus each department is responsible for supplying the project team with managers, technical staff, and so on, in all areas associated with their department. This responsibility focus becomes a fourth principle of organizational development encountered in the large firm environment. The company organization charts, division organization charts, titles, and so on, described in Figures 8.2 through 8.4 are only representative examples for the large firm. Many different organizational charts and an endless list of job titles exist at the large firm level. Each will differ slightly from firm to firm depending on the philosophy of the firm. The illustrations provided are typical of the types of classifications and the degree and detail in which organizations might emerge within the large firm environment.

The Project Team

8.3 THE PROJECT TEAM

121

The structure and size of the field component of the project team that emerges at the large firm level depends upon four major factors:

1. The functional breakdown of the large firm into departments. 2. The engineering and industrial process content of the project. 3. The magnitude of the field effort required in project support functions such as payroll and procurement. 4. The magnitude and sophistication of client demands, especially on remote sites that are close to the client's head office. Each of these four factors has a noticeable effect on either an organizational component of the field project team structure or on a structural form characteristic of the project team organization. The impact of these factors will be developed in general terms and illustrated later by specific examples. To manage a project, the company draws technical managers and staff from the various departments to meet the needs of the project. Once the individual is assigned to a project, he becomes an integral member of the project team. The employee's functional responsibility is to the manager of the project team; however, he must maintain an administrative link to his department manager. Normally, personnel from each of the project oriented functions are represented on the project team. The exact number of personnel is dependent upon the size of the project, its nature, and the desired level of management control. The concept of drawing technical managers and staff from the various departments for the project team is illustrated in Figure 8.5. The circle portrays the project team and the dashed lines depicting the departments from which personnel are drawn to the project team. The dashed lines also portray the administrative links that each project team member maintains with his parent department. The organizational structure that develops in the field project team can take one of two general forms, as shown in Figures 8.6 and 8.7. Figure 8.6 illustrates the case where the project team members can conveniently be grouped into three main areas (i.e., construction, field engineering, and field support), headed by a manager/supervisor type, so that each major field functional area reports to the resident field project manager. Thus the elements of a field top management group are established. If the size of the project team and the number and importance of the various functional areas prevents this simple development, then the enlarged form of the field top management group becomes necessary, as shown in Figure 8.7. If a pure construction project is involved with little specialist or process engineering content, the field engineering component of Figure 8.6 may be attached to the construction group in a purely staffing function (such as, for example, in scheduling and the preparation of field drawings). If payroll processing, field accounting, and procurement functions are minimal, the field support component of the field project team degenerates into a small office administration group. In all cases, however, the project team

'7 PRESIDENT

-

Figure 8.5 Project team and department relationship.

CORPORATE BUSINESS

n

PROJECT SUPPORT DEPARTMENTS

PROJECT MANAGFWFhT DEPARTMEN1

COhSTRUCTlOh DEPARTMEVT

EhGlhEERlhG DEPARTMENTS

Flgure 8.6 Project team development structure.

The Project Team CORPORATE BUSINESS

I

I

PROJECT PROJECT SUPPORT MANAGEMENT DEPARTMENTS DEPARTMENT

I

I

I

CONSTRUCTION E N G I N E E R I N G DEPARTMENT DEPARTMENTS

Figure 8.7 Project team development structure.

members maintain their administrative links with the parent departments (as shown by the dashed lines in Figures 8.6 and 8.7). A typical project team organization that develops in the pure construction area of the large firm environment and which takes the general form of Figure 8.6 is shown in Figure 8.8. The key man is the field project manager, who reports directly to the head office based manager of the project. He has full authority and responsibility to manage and control the field effort. As shown in Figure 8.8, the PM's field team is basically divided into three areas: Office management. Field construction. Field engineering. The office management function includes accounting, payroll, and procurement; the engineering function includes scheduling, cost control, and technical engineering. The final area is the field construction management force, including the general superintendent, craft superintendents, and others. Each area has its own organizational structure, with definite reporting lines established to the functional area manager. The project engineer is responsible for all technical engineering, both in the field office and field location. Any office engineers, field engineers, and contract administrators would fall into this area. Cost and scheduling each have their own section within the engineering area. The field construction team could be further divided by crafts such as carpenter, laborer, electrician, and iron

MANAGER OF PROJECTS

rHEAD OFFICE

I

I

A C CO U NTANT

PURCHASING AGENTS

I

I

------

I PLANNING

COST

I

I

I

I

I

I I

I

I

I r----1

I

I

I

I

I I I

I

I I

I

I I

r-c;sy-i

I'ESTIMATORS'HEAD I L----A OFFICE QUANTITY "suRvEvoRsl L----l

"

I

t FIELD

I I

OFFICE

GENERAL SUPERINTENDENT

PURCHASING GENERAL

Figure 8.8 Project team organization for a pure construction project.

The Project Team

worker. The general superintendent would remain the principal manager; however, the superintendents would be subdivided according to either craft affiliation or a specialty area of expertise, such as equipment superintendent. Each craft superintendent would have under his supervision a craft general foreman and craft foremen. He would be responsible for all work related to his craft, such as carpentry work for the carpenter superintendent. The field team contains field accountants, purchasing agents, costs engineers, and scheduling engineers, all of which have counterparts in the head office. The dashed line between these field personnel and the head office counterpart shows this administrative relationship. The pure construction firm's project team organization is devoid of a major engineering thrust, because the firm does not participate in this phase of the project. Although the project team supports a small technical engineering force, their main focus is not engineering for design but rather translating specifications, designing formwork, field design as needed, and possibly drawing "as builts." In the project team chart shown in Figure 8.8, overall project responsibility is under the direction of a manager of projects. This professional manager could either be assigned to the project full time or part time, depending on the size of the project. His management focus encompasses all facets of the construction process, and therefore he must have knowledge of all project oriented general management functions. At the head office level, the project team consists of the team members necessary to perform the early project definition functions, such as estimating and pre-job scheduling. These project team members, excluding the estimating group, will assist in reporting progress to the manager of projects when the project is in the field. In terms of manpower management, the majority of the effort is field oriented. Consequently, a rather extensive field organization is designed to give the field maximum capability to handle this heavy management commitment. A typical project team organization that develops in the designconstruct area of the large firm environment and which takes the general form of Figure 8.7 is shown in Figure 8.9. Since the design-construct project is often larger and more complex, the project team organization expands its size. In the head office the most obvious change is the addition of the engineering and design function. In this illustration the head office project engineer is responsible for technical engineering and design. The engineering and design staff under his responsibility, as shown in Figure 8.9, is a composite of technical personnel from each department. Consequently, the project team will have structural engineers and designers, electrical engineers and designers, and so on. The other head office functions are basically performed by the same types of personnel as identified on the pure construction firm's project team. In this case, however, the head of the project team is classified as a project manager. The project manager has responsibility for both engineering/design and construction and therefore must be knowledgeable in both areas. His position is, however, comparable with the manager of projects described in Figure 8.8, with the exception that he is normally assigned to only one major project.

Field Based Project Management

0 CLIENT

I

I

PROJECT MANAGER r--L-

-zq

1

QUANTITY 'S URVEYO RS '

CONSTRUCTION OF^^^^ ;;'A"

L----A

H E A D OFFICE

FIELD

/-------p'

PROJECT CONSTRUCTION ORGANIZATION

FIELD

FIELD

Figure 8.9

AREA SUPERINTENDENTS

COST ENGINEER

Project team organization for a design-construct project.

The construction function in the design-construct firm enjoys a strong position on the project team, because the project manager will rely heavily on the expertise of the construction managers. This characteristic appears on the project team in the form of a construction manager, who reports directly to the project manager and is responsible for all aspects of the construction effort in the head office and field. Because the construction manager is stationed in the head office, he must have a responsible manager in the field with the ability to manage all phases of the construction process at the field level. This manager is classified as the resident field manager and is equivalent to the project manager in the field organization

Manpower Management Functions at the Large Firm Level

8.4 MANPOWER MANAGEMENT FUNCTIONS AT THE LARGE FIRM LEVEL

127

of the pure construction firm.* The main difference is that the resident manager's line of reporting flows through the construction manager; however, direct communication with the project manager or project engineer in the head officewill always occur. The field component of the project team has a field office engineering and design staff, which would include such technical personnel as field structural engineers, and pipe engineering designers. A noticeable change in the field project construction organization is a further segregation of functional areas. For instance, procurement becomes an autonomous group, as does cost engineering. These groups would have their own organization, depending on the size of the project and number of staff positions required. The majority of the project team members can be classified as permanent salaried employees of the firm. They are relocated by the company to the various project sites as needed. They also travel frequently from a head office assignment to a field assignment and vice versa, depending on the philosophy of the specific company. Employment permanency is a valuable asset to the company, because the project team members become well indoctrinated into the company's method of operation and its policies and procedures. This is essential to developing lines of communication and close interaction between all the project team members. I t . must be emphasized that the foremen still remain outside the company's sphere of influence especially in a closed-shop environment. In an open shop environment, a staff of foremen is cultivated by the company in terms of permanent positions. In the closed-shop environment it behooves the large firm to move toward creating a pool of foremen loyal to the company, as is the practice in small and medium-sized firms. The project team members aligned with the organizational charts shown in Figures 8.8 and 8.9 perform a multitude of management functions relative to project execution. Many of these functions focus on manpower management problems. This increased manpower management focus arises from a number of factors, many unique to the large firm environment. The physical complexity of many industrial projects at the large firm level is such that it becomes necessary to divide the project into physical areas, zones, process levels, and so on, as a means of establishing a fix on the project for estimating, scheduling, and work force management purposes. In this way management effort can be focused systematically on identifiable portions of the project called work packages. The need to focus on the work package as the basic management unit means that the estimating process must now adopt a man-hour estimating approach because the labor unit cost approach provides insufficient information for detailed planning, scheduling, and control of manpower. As an example, man-hour estimating has an advantage in that it is a better approach to the evaluation of project manpower and trade requirements. *The resident field manager could have other titles, such as assistant project manager, deputy pioject manager, or field project manager.

Field Based Project Managemed

Similarly, at the work package level of estimating, the man-hour content approach frees management from the use of traditionally sized crews so that it becomes natural and effective to match crews to the requirements of a work package item. In order to establish the best crew sizes, many large firms more carefully monitor the performance of crews in relation to differing work conditions. This increasing focus on individual crew size management also complements the need for a more careful control of crews on the construction site as a whole. To accomplish this management objective, it becomes necessary to include both work package items and a consideration of crews into the scheduling process and to monitor progress and crew performance in terms of work package milestones and man-hour focused monitoring and cost control techniques. Finally, the increased fine detail with work package and crew scheduling needed at the field workface level requires a roll-up CPM and cost control focus which ensures that top management is not inundated with detailed information and receives only the relevant summary material. Thus in comparison to the small and medium-sized firms the large firm begins to use the WORK PACKAGE APPROACH I N PLANNING (function PS), SCHEDULING (function S4), and CONTROL (function R5) of the project. The FIELD PLANNING O F CREWS (function A4) becomes an important aspect of crew planning, owing mainly to the need to keep track of the PROJECT AND TRADE MANPOWER PROFILES (function A3) and its effective MANAGEMENT (function W3). In many cases the project site is both physically large and cluttered, so that the controlling of crew movements and the tracking of personnel generally becomes such an arduous task that FIELD MANAGEMENT RECORDING (function R8) is needed to address this problem. One common technique, for example, is to identify the different trades and levels of field supervisors throughthe use of different-colored hard hats. A complementary project management effort often arises at the large firm level because of the pressure exerted on the project team by a more professional business and management oriented client. In this situation the project management team is frequently required to prepare penetrating project reports and forecasts, especially on labor as a major manageable field resource. This project management requirement ensures that more specialist team members are included in the project team. Thus project management will initiate more sophisticated field management procedures and reporting techniques that focus on manpower management problems. At the large firm level all the manpower management functions are performed by the firm, as indicated in Figure 8.10. The extent to which they are formally performed, and the sophistication of techniques and methods used in their performance, will often depend upon the nature of the project, client demands, and the experience of the firm's project team members. Thus it is possible to find a variety of professional approaches to the performance of manpower management functions at the large firm level in the construction industry. This potential for a multilevel increase in the sophistication of performance of individual functions is suggested

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

W1 RELEASE STAFF TO PROJECT

MI SUMMARY PROJECT REPORTS

R1 HISTORICAL DATA BASE

P2 ACTIVITY DEFINITION

S2 ESTABLISH CONSTRUCTION SCHEDULE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W2 PRE-JOB LABOR CONFERENCES

M2 CURRENT PROJECT STATUS

P3 QUANTITY TAKEOFF

S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES S4 DEVELOP WORK PACKAGE DETAILED LOGIC

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES A4 DETERMINE NUMBER OF FIELD CREWS

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

M4 ACTIVITY ANALYSIS

R4 UPDATE AND REVISE WORK PACKAGE SCOPE

S5 DEFINE CURRENT PROJECT STATUS S6 REVISE CONSTRUCTION SCHEDULE

AS ADJUST CREWS A6 ASSIGN INDIVIDUAL WORK TASKS

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS W6 SOLVE HUMAN RELATIONS PROBLEMS

M5 LABOR ANALYSIS M6 WORK PROGRESS

RS LABOR PRODUCTIVITY R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

M8 FIELD INSPECTION

R8 FIELD AUTHORITY DOCKETS

P4 ESTIMATE LABOR CONTENT

P5 DEFINE WORK PACKAGE P6 DETAILED FIELD QUANTITY TAKE-OFF P7 ESTABLISH CREW REQUIREMENTS P8 PLAN WORKFACE LAYOUT

S7 SCHEDULE PROJECT CREWS S8 SCHEDULE CREW MEMBER WORK SEQUENCES Figure 8.10

W7 INITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

MONITOR M

Manpower Management Functions chart for the large firm.

RECORD R

Field Based Project Managemeat

8.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT

by the descriptive format used to describe each function in the Appendix. However, not every function at the large firm level is considered and performed to the full extent of its description, as shown in the Appendix. The detailed consideration of this aspect of manpower management, and a classification of the techniques used, is left to the companion volume in this series. The primary organizational and management objective of the Field Based Project Management approach is the transfer of management responsibility and authority from the head office to the field location. This changing management focus and emphasis is the result of the large technical and complex projects of the large firm environment, the size and location of these projects, and the management scope and expertise required by the client who is often located near the project. The impact of the Field Based Project Management approach on the project team organization is recognizable in terms of the significant growth in both the number of personnel located in the field a i d their range of professional and technical expertise. In this way, the project team can cope with the heavy field management commitment required at the large firm level. The Field Based Project Management approach ensures that a proper distribution of manpower management functions occur in relation to the responsibility focus and technical expertise of the individuals. As an example, the field project manager performs only those functions located toward the top of the Manpower Management Function chart and no longer performs such functions as those associated with detailed scheduling and crew planning. These functions are therefore performed by specialists, such as scheduling engineers and superintendents, at lower levels in the organizational chart. Thus the management roles of the project team members will reflect a changing management focus when contrasted with the management roles of the project team of the mediumsized firm. This is evidenced by the increasing number of functional plots on the MMF chart of the large firm, which involves many new specialists and technical personnel. The shrinking plot size of typical project team staff, such as the project manager, is further evidence of changing management roles in manpower management at the large firm level. The distribution of manpower management functions to the project team members is described on the manpower management functions plot for the large firm as shown in Figure 8.11. This MMF plot represents the division of management functions to those personnel on the typical project team organization in the construction environment at the large firm. The plot focuses primarily on the field project team, with several plots for personnel located in the head office. It does not consider the location of personnel associated with the engineering and design aspects of the design-construct project.* -

~

* Detailed manpower management function plots for professional engineers and technical designers is not covered in the scope of this book. These plots could be developed provided that the function titles and job descriptions in the Appendix are structured to reference the management processes of producing engineering specifications and construction drawings. As an example, the field planning functions (P5

Management Roles in Manpower Management

131

The hierarchical nature of the management plots in Figure 8.11 can be exhibited in a number of ways. First, for the head office project team, the manager of projects has line relationships with the head office cost engineer, scheduling engineer, and construction engineer and a staff relationship with the labor relations expert and estimator. The functional plots and organizational relationships of these head office personnel should be contrasted with the plots of those project team staff members located in the same relative positions (see Figure 7.8) in the medium-sized firm. It is clear that the head office cost, scheduling, and construction engineer and labor relations expert assume functional roles previously under the project manager and superintendent plots of the medium-sized firm. Both the estimator's and cost accountant's functional plots shrink at the large firm level, because of the specializing focus required in scheduling and cost control. Consequently, new engineering positions emerge relative to cost and scheduling activities. The manpower management role of the Field Project Manager or Resident Manager is greatly reduced in the MMF plot for the large firm. While the PM is still involved with many functions, the plot suggests that his responsibility focus is limited. This is essential at the large firm level because the project size, complexity, and technical requirements demand full management attention in terms of policy making, interaction with the client, project staffing, and overall project management. However, notice in Figure 8.11 that the project manager still maintains close contact with all the critical functions associated with project planning, scheduling, and control. Although his duties in these areas would not include, for example, detailed scheduling, as this is a specialist function of the field scheduling engineer, he would often provide direction through reviews and comments on schedules and resulting manpower curves. This would occur on a total project basis rather than in a specific area of the plant. However, if critical problems required the project manager's attention in a specific area, he would become involved in that area. I t is obvious that the project manager's position is becoming specialized in terms of manpower management. Once the project is released to the field, the project team manager has a limited manpower management role and hence the field functions are clearly allocated to a larger number of project team members. The general superintendent, cost, scheduling, and field engineers, and labor relations specialist all assume responsibilities previously under the project manager's or superintendent's focus in the medium-sized firm. This allows both the field project manager and general superintendent to allocate a greater percent of their time toward managing construction and client through P8) would focus on the size of the design teams required based on the number of drawings to be produced. We believe that the management aspects of the design and structuring of the engineering/design teams should be exposed as part of the manpower management problem. Thus some functions in the Appendix reference engineering and design in their job description. The majority of the functions, however, apply to the construction process rather than the process of producing construction drawings.

PLAN P

SCHEDULE

S

ALLOCATE A

WORK W

MONITOR M

Figure 8.11 Ideal division of manpower management functionsField Based Project Management.

RECORD R

Management Roles in Manpower Management

133

interfacing. The other field staff members, in a supporting mode, furnish cost and scheduling data for planning construction activities, plus collecting, processing, and analyzing progress information for field management's use in project control. The foremen assume their normal role, as their responsibilities are not significantly reduced but could be further refined to reflect general foremen and working foremen relationships. The Superintendent position in the project team organization has various staff levels (Figure 8.9). The top level, the general superintendent, has a functional plot in Figure 8.1 1, and the other levels are represented by a functional plot of a normal superintendent, such as an area or craft superintendent. Two plots are presented to further illustrate the changing manpower management focus of the superintendent. The general superintendent has a top-level management role in construction and therefore would be divorced from detailed crew planning, management, and daily field monitoring of construction activities and labor performance. These management areas are the traditional areas of responsibility of the superintendent, which matches that plot in Figure 8.11. The general superintendent is a field construction manager and is involved in more manpower planning and scheduling details and project control aspects because of the support expertise he gains from other professionals. The decreasing manpower management role of the Project Manager and the increasing expertise and limited focus of the superintendent position provides the atmosphere for the introduction of more comprehensive manpower planning and scheduling techniques associated with work package concepts, predicting trade and total project manpower levels, or controlling labor man-hours in the field. Because of the size, complexity, and technical nature of the large project, the superintendent still requires support in implementing these techniques. This is in part solved by a growth development of the field engineering and cost accountant positions with two new field personnel, the cost engineer and scheduling engineer. In terms of manpower management, the Cost Engineer is responsible for the performance of the functions associated with the following areas: field cost control and labor performance (M4, R4, M5, R5, and R7), cost trending (M3), forecasting of labor man-hours and dollars (M3), preparing and analyzing project status and summary reports (MI and M2), and generating labor data for historical data base development and maintenance (R1 and R2). The cost engineer assumes much of the functional responsibility of the cost accountant when contrasted to the cost accountant's role in the medium-sized firm. This changing focus results from an engineering philosophy as applied to project cost control because of the more comprehensive and sophisticated manpower management techniques which burgeon at the large firm level. The basic cost engineering position is both head office and field oriented. In the head office, the cost engineer's key role is the preparation of reports for top-level project and executive management. These reports are based on input from the field, so he maintains an administrative link with the field cost engineer. The cost engineer works closely with many other project team mem-

Field Rased Project Management

bers (see Figure 8.11), such as the project manager, superintendent, scheduling engineer, and cost accountant. In this capacity, he must have the ability to work with a wide range of individuals from top-level managers to the foremed level. The cost engineer is technically oriented with an engineering background. He has a basic knowledge of construction activities and their relationships to the labor cost component of a project. A detailed management plot of the cost engineer's functional duties is depicted in Figure 8.12. f

\ COST ENGINEER M1 SUMMARY PROJECT REPORTS Generates: reports showing forecasts to complete, revised labor costs, manhours to complete, variances between budget man-hours and forecasts Summarizes: problems or potential problems

R1 HISTORICAL DATA BASE Standardizes: typical project manpower charts, progress curves, unit manhour for work categories, craft mixes, productivity indicators

R2 GENERATE LABOR MANAGEMENT DATA

M2 CURRENT PROJECT STATUS

Impacts: revised man-hour forecast into project status, scope changes, and relevant cost adjustments Identifies: problems

Generates: project manpower curves, unit man-hour tables for work categories, progress curves, crew mixes Documents: unusual job conditions, requirements, and schedule impacts

PROJECT FORECASTING

M3

Forecasts: man-hour and labor costs to complete Impacts: budget and forecast for new scope

R4 M4

ACTlVlTY ANALYSIS

Suggests: activity analysis based on labor productivity analysis

M5

LABOR ANALYSIS

Analyzes: estimated unit man-hours against actual unit man-hours for work tasks

REVISE WORK PACKAGE SCOPE

Reassesses: field cost estimates and labor man-hours for work package R5 LABOR PRODUCTIVITY Documents: estimated unit man-hours against actual unit man-hours for work tasks R6 QUANTITIES IN PLACE Assigns: cost code to quantities placed for work item Inspects: daily progress in field R7

LABOR HOURS

Reviews: cost codes in labor man-hours charged to work item Inspects: location of crews in relation to work tasks

\ J Figure 8.12 Typical cost engineer manpower management job description plot.

Management Roles in Manpower Management

135

The role of the Scheduling Engineer in manpower management is comparable to the cost engineer in many respects, with the exception that the scheduling engineer performs scheduling functions, such as establishing construction sequences and schedules (S1 and S2), developing man-hour and manpower curves (S3 and S4), planning and scheduling work package activities and their logical sequences (P5 and S4), and statusing and revising project schedules (S5 and S6). The scheduling engineer shares functional performance with the cost engineer in the area of labor productivity and activity analysis (M4, M5, R4, and R5) and project status reporting and forecasting (MI, M2, and M3). This occurs because both engineers require information from these functions. The scheduling engineer has both a field and a head office location, which are administratively linked. The scheduling engineer assists and has contact with many project team staff members. His position is an extension of the field engineer of the medium-sized firm. At the large firm level, ficld engineering becomes highly technical in terms of interpreting specifications, drawings, and other activities necessary to support construction, and therefore becomes an area of expertise by itself. Scheduling becomes more specialized by virtue of the techniques and management demands for comprehensive scheduling systems, which focus on work package concepts, and therefore requires a specialist scheduling engineer. The scheduling engineer is technically inclined, with an enginesring background. He also has practical construction knowledge, which enables him to identify and analyze the construction components of a project and sequence them in a logical manner. A detailed job description is provided on the manpower management plot of the scheduling engineer in Figure 8.13. Figure 8.13a shows his involvement in project planning and scheduling, and Figure 8.13b shows his involvement in project scheduling control. The size of the project work force and the complexity of the union environment in closed shop construction often necessitates a full-time project labor relations expert. His plot would cover those functions related to work force management, labor relations, and industrial relations (W2, W3, and W4). He must be an active expert in industrial relations human management and have working knowledge of all jurisdictional areas and restrictive work practices. In the project definition phase, the labor relations expert performs labor reconnaissance ( P l ) duties in which he is responsible for collecting all information relative to the labor environment in the project area. In an open shop construction environment, the labor relations expert may be involved with training programs and schemes for recruiting manpower from all the crafts needed on the job site. In union areas, he will argue jurisdictional issues with the business agent of the union. He normally has an industrial relations background. His detailed job description plot in relation to manpower management is shown in Figure 8.14. In summary, the management roles of the project team members on the large firm project assume a more specialized and technical focus than those for project team members of the medium-sized firm. There are more

-$

S1 CONSTRUCTION SEQUENCE Assists: defining work activities and categories Develops: construction plan through logical sequencing of work activities Considers: impact of resources, materials, and equipment S2 ESTABLISH CONSTRUCTION SCHEDULE Develops: start/finishes dates of activities, planned progress curves Considers: milestones, man-hour content of activities Impacts: availability of resources, project priorities, subcontracts, work weeks, etc. S3 DETERMINE PROJECT AND f TRADE MAN-HOUR SCHEDU1,ING ENGINEER PROFILE

/'

Develops: total project and trade man-hour curves Adjusts: curves to match planned prcgress estimates

DETERMINE PROJECT AND TRADE MANPOWER PROFILE A3

Develops: total project and trade manpower curves Adjusts: manpower to match availability, plamed progress

S4 DEVELOP WORK PACKAGE DETAILED LOGIC Develops: detailed construction logic to match overall schedule time frames for work package activities Identifies: planned progress, man-hours, manpower for work package

P5 DEFINE WORK PACKAGE Specifies: work package required in relation to schedule

\

/

f J

(0)

Figure 8.13 Typical schedtiling engineer manpower management job description plot. ( a ) Project planning and scheduling. ( b ) Project scheduling control.

\

f M1 SUMMARY PROJECT REPORTS Generates: reports depicting progre'ss comparisons, productivity comparisons, manpower, and progress curves to complete Summarizes: problems or potential problems

M2 CURRENT PROJECT STATUS

/

f

Establishes: critical activities, progress achievements, productivity indicators, necessary schedule revisions, manpower to complete, and progress to complete Identifies: existing or potential problems M3 PROJECT FORECASTING

SCHEDULING ENGINEER

Forecasts: manpower curves to complete, progress to complete, impact of scope changes on schedule

M4 ACTIVITY ANALYSIS

R4 REVISE WORK PACKAGE SCOPE

Suggests: activity analysis to improve progress or performance for selected work tasks

Reassesses: construction logic, completion requirements of work tasks Reevaluates: progress and manpower targets

SS DEFINE CURRENT PROJECT STATUS

MS LABOR ANALYSIS

RS LABOR PRODUCTIVITY

Establishes: activity progress, activity forecasted completion dates, forecasted start dates, critical activities Impacts: trends and changes in scope

Compares: actual productivity with target productivity for work areas

S6 REVISE CONSTRUCTION SCHEDULE Revises: start and cornpletion dates, change construction logic Forecasts: new progress and manpower curves to complete

M6 WORK PROGRESS Assists: evaluation of physical progress for work tasks Inspects: progress achieved in work tasks

L

Documents: labor productivity value for work areas

R6

QUANTITIES IN PLACE

Reviews: quantity value achieved for work tasks

/

(b) Figure 8.13 (Continued)

Field Based Project Management

7

f

LABOR RELATIONS EXPERT P1 CONSTRUCTION RECONNAISSANCE

Assesses: labor availability, skill levels, local productivity, union rules, training requirements Quantifies: craft manpower availability, skill level

W2

PRE-JOB LABOR CONFERENCE

Develops: communications with unions, human and industrial relations, potential training programs

\ W3 WORK FORCE MANAGEMENT Recruits: craft labor of all types Develops: methods to screen applicants, check work credentials, wage structures W4

ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS

Enters: jurisdictional dispute areas Establishes: skill classifications

L Figure 8.14 plot.

Typical labor relations expert manpower management job description

personnel and the management function overload of the project manager is reduced considerably. The MMF plots separate the staff into areas of responsibility that are oriented toward either construction, engineering, or project management.

J

CHAPTER

9

The Project Team Structure: Total Field Autonomy

A desirable objective in project management is to create a management organization and environment that efficiently melds the project definition, field construction, and project management components into a single holistic project team. Its achievement can be considered as the final culminating phase in the design, development, and integration of the project team structure. In achieving this desirable objective, however, it is necessary to overcome the problcms associated with the physical separation of the construction site from the head office, and to operate in a construction environment that either encourages and rewards its attainment or demands its establishment as a necessary condition for construction management. Previous chapters have focused on the development of project team structures as a variety of self-generated and imposed management and organizational solutions aimed at strengthening the integration of the project management components and minimizing the problems generated by the physical separation of the head office and field site. In contrast, the Total Field Autonomy approach to project management strives for total project management integration and the elimination of head officesite location constraints. In the Total Field Autonomy management approach, the project management team becomes a fully integrated and balanced team with flexibility and authority to operate autonomously at the field site. Although originating in a head office, during initial engineering and design stages, it gradually moves out into the field and assumes full management control of the project. All normal head office functions can be performed in the field and total field autonomy can be achieved with the authority of a resident executive project manager. This form of project team structure and management approach completes the evolutionary development that begins with independent head office and field components (Chapter 6 ) , evolves next to the partially integrated head office and field organization via the

rT-r

Total Field Autonomy

FINANCIAL. PROJECT SCOPE REQUIREMENTS FINANCIAL. TECHNICAL DATA, CLIENT TECHNICAL DATA AND CHANGES PROJECT STATUS AND PROGRESS i PROJECT STATUS

ENGINEBRIiVG A N D i AND PROGRESS .i..DESlGiQ ...........DEVEIOPblENT ..................

HEAD OFFICE

j CONTINUOUS DATA UNTIL :PROJECT TEAM TRANSFER TO FIELD

FIELD LOCATION

I

PROJECT DEFINITION

PROJECT DEFINITION- FIELD OFFICE PLAN - Estimate refinements based on work order and trends SCHEDULE AND MANPOWER IMPACT ‘Y Detall work scheduler Detailed manpower ALLOCATE planning

PLAN- Rough or detailed estimate development

I

FIELD CONSTRUCTION PLAN SCHEDULE

)

ALLOCATE

z a ~ o ~ t i and o n labor

RECORD

Historical data development Data processing for field

---)

)

SCIENTIFIC MANAGEMENT

-

APPLICATION

Crew management Field monitoring

ACTIVITY

PROJECT MANAGEMENT- FIELD MONITOR RECORD SCHEDULE RECORD

1

Detail crew planning and scheduling based on work order Number of crews and adjustments

PROJECT MANAGEMENT

RECORD

I

SCHEDULING & MANP O W E R GUIDELINES & OBJECTIVES

ONE WAY FLOW OF PROJECT STATUS - PROGRESS REPORTS TO EXECUTIVE MANAGEMENT

-

] -

Progress and status and data processing Status and revise

- Generate Labor data for project labor data base

1

Figure 9.1 Project team structure: Total Field Autonomy management.

traveling project manager (Chapter 7), moves to the more field oriented focus (Chapter 8), and finally becomes totally autonomous in the field environment. I n this final management approach decision problems are handled in the field and in direct consultation with the client as required.. Decisions can therefore be made in a timely manner and solutions enacted

quickly. A general schematic representation of the Total Field Autonomy project team structure in relation to the head office and field components i s shown in Figure 9.1 (superimposed on a copy of Figure 5.3) for reference. The relationships in Figure 9.1 are intended to show that although the head office maintains many of the normal head office functions, the field can and does execute all the functions performed in the head office. In many cases, the head office i s completely de-staffed once the field project team i s established. In this instance, the head office i s mainly concerned with preliminary planning, scheduling, and control plus engineering and design

when i t applies. The Total Field Autonomy approach to project management emerges, most often, in the large firm environment, and the discussions to follow

The Construction Environmeot

9.1 THE CONSTRUCTION ENVIRONMENT

will focus on this environment. However, only the major differences from the large firm environment and organizational structure as related to the Total Field Autonomy concept will be discussed. Specific manpower management functions and the management personnel who perform these functions will be highlighted in terms of the significant differences between the Field Based Project Management and Total Field Autonomy concepts. An important ingredient in the construction environment which fosters the Total Field Autonomy approach to project management is the exacting nature of the demands for sound project management practice brought to bear on the contractor by the client. This is especially apparent in a construction market wherein the client is committing vast sums of money toward a complex facility that must be phased into production according to a predetermined and constrained schedule. In this financial environment clients are vitally interested in financial expenditure predictions and in ensuring that project cash flows correlate well with work progress and value of construction in place with construction dollars spent. The client is often well versed in current management techniques and will demand the maximum project management effort from the constructing firm. Consequently, the client will actively participate in the project management process. In this type of environment the managing contractor must not only demonstrate that he has the technical expertise to perform the work but, equally as important, he must also have the management expertise to execute the project on schedule and within allowable budgets. Thus the contractor must be able to sell his management systems to the client as well as his technical abilities. Even though many projects are cost plus and the contractor is assured of recovering his costs, he endangers his reputation and chances for more work if he does not perform satisfactorily. Many clients in this area are directly involved in the utility, petroleum, manufacturing, and the mining and metals industries, and have a considerable knowledge of process technologies and performance requirements. The project size, complexity, and location of the projects generated by such clients, coupled with the constructional need for the highly productive use of large labor forces over prolonged durations, often leads these clients to insist that they closely supervise all construction, especially that related to process lines. Thus the client's knowledge in all aspects of financial, technological, and managerial processes, coupled with the interest in the close maintaining of the contractor's field construction and project management processes generally ensures that the contractor fields a fully autonomous project management team. The construction environment, and project size, which encourages this final stage in the development of the project team structure, is generally met at the large firm level in the construction industry." The firms that utilize this management mode are characteristically the same as the large firm in terms of company *However, it may emerge at any time or level, depending on the pressure brought to bear by the client and the management attitude, expertise, and desires of the key personnel within the firm.

Total Field Autonomy

organizational structure, type of project portfolios, and professional and technical employment levels, as described in Section 8.2. The Total Field Autonomy approach is most often associated with a large firm acting in a construction management mode. As construction manager, the firm's project responsibilities could vary considerably. As an example, the contract manager could have no direct construction responsibility for any phase of the work and would only manage all facets of the project from inception to completion, including engineering and design as required. Alternatively, the managing contractor could have limited project responsibility in engineering and design, and act mainly as the manager of the construction and start up efforts. Finally, the firm could have overall project management responsibility plus some engineering and design functions as well as being the prime contractor. It is evident that depending upon the needs of the project and the client's interests, a broad range of responsibilities can be assigned to the firm operating in a construction managcment mode. Regardless of the degree of direct project responsibility, the firm selected by the client as the contract manager must cxhibit an expertise in both project and construction management. However, the degrce to which the contract manager can impose his management system on those contractors actually performing the various engineering, design, and construction functions depends heavily on the client's position and desires and the proportion of the project work that the contract manager is performing with his own personnel. In terms of his own forces, the contract manager can utilize his own managcment system. In the case where, at the client's insistence, other construction management systems are selected, the other participating firms are often forced to modify their management systems in order to comply with the contract manager's systems for executing the project. If the client does not support the contract manager's system, then the contract manager will have difficulty executing his responsibilities. Hence the client's perception of the required level of management system coordination plays a large role in the project management process. Although the contract manager establishes the overall project management systems, there will be times, especially in a lump sum bidding situation, when he will have little control over the method by which some of the contracting firms operate. In these instances the subcontractor could already be operating, or choose to operate, his project team in any one of three modes: (1) medium-sized firm (TPM) ; (2) large firm (Field Based Project Management); or ( 3 ) Total Field Autonomy. The managing contractor must then ensure that sufficient information is made available to him by the subcontractor when he produces overall project management reports. Thus the more the contract manager's system is utilized, the more control the managing contractor can maintain. His leverage in this situation will depend on the client's attitude to, and insistence on, the use of his system. The number of firms who operate in the construction management mode are relatively few because of the huge management commitment required by the firm.Most of these lirms may also operate on other proj-

Organizational Structure: Total Field Autonomy

143

ects under the Field Based Project Management approach (especially when the location of the project is not isolated relative to the home office). In this case, the actual management approach of such a firm would be based on a mixture of theField Based and Total Field Autonomy project management concepts. The firms in the Total Field Autonomy category generally commit significant sums of money for system development in all areas of management concern, including cost, scheduling, and field construction systems. In addition, a continuous effort is maintained to reevaluate and revamp old systems and create new and more efficient systems. Key management personnel in these firms must be progressive enough to accept changes and must always be seeking new and better ways of operating. Some clients are extremely sophisticated in their business, management, and decision processes, and this sophistication forces the contractor to be continuously seeking for, and to be aware of, new innovations which will keep them one step ahead of the client. This type of attitude makes the Total Field Autonomy approach viable, because the firm is willing to commit the resources necessary to providc for the best possible management techniques. If these techniques prove successful, the firm builds;solid reputation as a management contractor and also makes enough profit to support their system development programs. The cost plus fee contract is the most common approach in the Total Field Autonomy enviroment. Although the contractors involved are reimbursed for all costs, the impetus for sound project management lies in the reputation the contractor develops from completing projects on schedule and within allowable budgets. Furthermore, incentives are often available provided that certain agreed upon milestones are achieved. These incentives can make these projects extremely profitable. The Total Field Autonomy approach is not exclusive to cost plus projects. I t is employed on lump sum (negotiated) contracts and is often most effective in this situation. The basic organizational structure of a firm operating in the Total Field Autonomy mode of project management is not significantly different from that commonly met in the large firm. The departmental approach is maintained as the best organizational approach to the management of technical and speciality areas, and within each department there exists many functional divisions to suit the needs of the organization as a whole, and the firm's specialized work. Each department will have its own unique organizational structure and will be given the leeway to establish its own policies provided that these policies meet the firm's overall business and management objectives. The main general management functions are each handled by a department so that the distinction between business oriented and project oriented functions can be made. The definition and number of these general management functional areas may change due to the nature of the firm's speciality (e.g., power) and a finer definition of management responsibility. Changes of this nature do not significantly affect the project management approach. -

- -

~

9.2

ORGANIZATIONAL STRUCTURE: TOTAL FIELD AUTONOMY

-

-

Total Field Autonomy

I

OWNERSHIP INVESTING

1

Lrl

'7 PRACTICING

CORPORATE ADMINISTRATION

I

I

ENGINEERING1 MANAGEMENT

Figure 9.2

COST

CONSTRUCTION

Organization chart for large firm: design-construct,

The company organization structure for a firm in this category might be similar to Figure 8.2b. It is shown here as Figure 9.2 for reference. The important aspect of this chart is the separation of the project oriented functions into individual departments. Project management must be a separate functional entity, owing to its role in the project management process. Generally, this department is a composite of personnel from the other project oriented departments. For instance, the engineering and design discipline will have personnel that are in project managementsimilarly with planning/cost, construction, and procurement personnel. By drawing their project managers from the various departments, the project management group can staff the project team organizations with personnel having a good basic range of expertise. These project manager types are usually the more professionally oriented and perceptive individuals who have demonstrated their ability to manage. The departmental organization would not differ significantly from those presented in Section 8.2 (see Figures 8.3 and 8.4). Because these firms commit more resources to system development, separate divisions often arise within each department which specialize in systems analysis and development. The departmental approach to the organizational structure of the firm is essential at the Total Field Autonomy level. It is through this approach that the project oriented functions can be broken into discrete functional categories wherein professional technical or functional managers can develop and cultivate an area of expertise. This specialization attribute becomes important when the project team is formulated because the immense nature and complexity of the projects encountered demand specialized talents in order to execute the project management process. As exemplified in previous statements, even the project manager role becomes specialized.

The Project Team: Total Field Autonomy

9.3 THE PROJECT TEAM. TOTAL FIELD A~~ONOlMY

145

The project team organization that develops in the implementation of the Total Field Autonomy approach to prdject management is built up around a combination of project technical or functional area managers drawn from the various specialty and functional departments within the organizational structure of the firm (as shown in Figure 9.2). Once a specific area manager is assigned to the project team, he becomes functionally responsible to the project team. He maintains an administrative link to his department but only through a senior project team member (who is a project manager type) who represents the department. The number of assistant project managers or area managers in the project team depends on the size of the project, its nature, and the desired level of management control as established by both the firm and client. The organizational and management approach to project team development, drawing managers from the various departments, is similar to the approach used by the large finn (as illustrated in Figure 8.5). The organizational structure of the project team is designed with considerable care and detail, as it must represent the optimum approach to managing the project. The structure may changc forms several times before the final organization is settled upon by the client and the firm.* The initial phase of project team development is to establish the project management staff. This includes the selection of the project manager and key assistant project managers.t These key personnel are selected in agreement with the client, and their release from the project often requires client approval. These key personnel often undergo an intensive training and orientation program in collaboration with key staff from the clients' own organization. A major function that they then perform is the design (and management) of the size and organizational growth of the project team itself. In some cases the contractor's project team is melded into the clients onsite project supervision management team so that in fact a single totally integrated project team emerges. The assistant project managers are appointed as managers of their functional areas when the project team is designed. For example, as shown in Figure 9.3, the project management level consists of five assistant project managers reporting to the project manager. The disciplines represented in this illustration are engineering and design, planning and controls, procurement, construction, and administration. The project manager is often an executive vice-president and is selected carefully because of the criticality of his position and the authority he holds. The project manager then appoints his project management staff in consultation with his executive counterparts. These key personnel are drawn from the project management department and have a background in the area for which they will have direct responsibility. As an example, the assis*The client and managing contractor are considered separate entities for the examples of project team design in this section. Furthermore, the engineering/construo tion project is used as the basic type of project for illustration. t The terms project director and deputy project director are also used in practice to describe the project management level.

Total Field Autonomy

MANAGER

I ASSISTANT PROJECT MANAGER- PLANNING AND CONTROL

ORGANIZATION F I G U R E 9.6

I MANAGERDESIGN

ORGANIZATION FIGURE 9.4

I

ASSISTANT PROJECT MANAGERADMINISTRATION

1 ASSISTANT PROJECT MANAGER-

- PROCUREMENT

ASSISTANT PROJECT MANAGERCONSTRUCTION

ORGANIZATION

CHART,

Figure 9.3 Basic project management level organization for both home office and field-Total Field Autonomy approach.

tant project manager of engineering and design most probably will have obtained his background through the engineering department. The basic project management level positions remain the same in terms of both the home officc and field. This practice allows for easy transfer of responsibility from the home office to the field. The particular person occupying the position may, or may not, transfer to the field, with the exception of the project manager, who normally relocates to the field. Once the project rnanagcment level is designed and staffed, the remaining segments of the project team are designed and staffed. The design of the project team is based on a management control philosophy established by the project management staff. A common philosophy is to divide the project into discrete control areas based on either geographical locations and/or production units. For each control area a subset of project teams is created, with the necessary disciplines to perform all requisite functions pertinent to the control area. Consequently, when the assistant project managers are designing the structure of their organizations, the structure must be consistent with the control area philosophy. The organizational design developed by any assistant project manager for his groups is subject to the approval of the project manager, department managers (home office only), and the client. This practice is relatively common when employing the Total Field Autonomy approach, because the design of the organizational structure identifies the number of positions to be staffed. The total number of positions can be translated into project estimates of the man-hours required to engineer and design the project and execute construction in the field. There are other factors that influence the size of the project team staff in any particular functional area, such as the number of drawings required, the direct field manhours to be controlled, or the number, type, and frequency of project management reports to be generated.

The Project Team: Total Field Autonomy

ASSISTANT

PROJECT MANAGER E N G R .

ENGINEERING MANAGERIN HOUSE E AND D

ENGINEERING ADMINISTRATIVE

I COORDINATION A N D INTERFACE WITH OUTSIDE E N G I N E E R I N G A N D DESIGN F I R M S

AREA X

AREA MANAGER AREA Y

I PROJECT

I

ENGINEER UNITS 1. 2, 3

PROJECT ENGINEER UNITS 4, 5. 6

1 PIPING

I

ELECTRICAL STRUCTURAL INDUSTRIAL COORDINATION

-4 I 71

LEAD E N G I N E E R S

LEAD DESIGNERS

ENGINEERS

DESIGNERS

I -I

DESIGNERS

Figure 9.4 Typical engineering/design project team in home office-Total Field Autonomy approach.

In the head office, apart from the general project management group, the primary discipline is the engineering and design group, whereas the construction discipline is the primary group in the field (augmented where necessary by special technical groups who focus on the installation and testing of specific process lines). The other groups are considered support or service groups. Each group, however, answers directly to the project manager through the assistant project manager for that group. The interaction between service groups and the engineering or construction disciplines can vary from firm to firm, and even between projects within the same firm, depending on the size and complexity of the project. Several typical illustrations are shown in Figures 9.4 through 9.6. The control area concept is illustrated in both the engineering organization, Figure 9.4, and the construction organization, Figure 9.5. The engineering organization, Figure 9.4, is comprised of three basic groups: (1) outside engineering and design, ( 2 ) administration, and ( 3 ) in-house

PROJECT MANAGER I

I

CONSTRUCTION MANAGER AREA Y

SUBCONTRACT ADMINISTRATION

I

CONSTRUCTION

CONSTRUCTION MANAGER AREA Z

SUPPORT MANAGER

-

ENGINEERING MANAGER

ASSISTANT PROJECT MANAGER

M

~

GENERAL GENERAL SUPERINTENDENT SUPERINTENDENT ~ ~ ~ UNITS ~ 4, 5. 6R UNITS 1. 2, 3

-

SURVEYORS

COST AND SCHEDULING ENGINEERS

Figure 9.5

ASSISTANT SUPERINTENDENT

GENERAL SUPERINTENDENT UNITS 7, 8, 9

FIELD ENGINEER

","l$,"ghS

METHODS ENGINEER

Typical construction project team-Total Field Autonomy approach.

COST1 SCHEDULING AREA MANAGER

1 SUBCONTRACT ADMINISTRATOR

The Project Team: Total Field Autonomy PROJECT MANAGER

PROJECT MANAGERPLANNING

I

\ SCHEDULING ENGINEER COORDINATION

COST/SCHEDULING COSTISCHEDULING AREA MANAGER AREA Y

UNITS 1, 2, 3

AREA MANAGER AREA X

COSTISCHEDULING AREA MANAGER AREA Z

COORDINATION

UNITS 7. 8, 9

STUDIES, ETC.

-

UNITS 4, 5, 6

COST ENGINEER

Figure 9.6 Typical planning and controls organization in field environment-Total Field Autonomy approach.

engineering and design. Each group is headed by an engineering manager. The in-house engineering group is further dissected into control areas under an area manager. The control area may have several production units associated with it. Depending on the size of the production units, the control area may be segmented into units under the direction of a project engineer. The next level of staffing is at the respective engineering and design groups, such as structural, electrical, piping, and mechanical. Each engineering discipline will have its own organizational structure, including a lead engineer and lead designer, plus the engineering and design groups producing the specifications and drawings. In the home office, each engineering discipline will have its own organizational structure. As shown in Figure 9.4, for example, only a segment of the staff will be working on units 1, 2, and 3. The organizational structure established for the construction effort in the field is designed in much the same manner (as illustrated in Figure 9.5) as the assistant project manager of construction reports directly to the project manager. Reporting to him are the construction managers of each area. The construction manager of any given area is often given the authority to design his own area organization as long as it meets the

Total Field Autonomy

objectives of the overall project team design philosophy. For instance, the group manager will have one or more unit managers or general superintendents. The construction manager will also have a materials manager, cost/scheduling manager, office engineer, and office manager (just to name a few functions that are represented). The unit general superintendent will have under his control his main construction constituents, such as the mechanical, electrical, civil, and piping superintendents, plus their staffs down to the foreman level. Each unit will also have a unit field engineer and/or methods engineer, cost/scheduling engineers, and material control personnel. Certain positions are not staffed at the area level but are available to the unit manager, such as the technical engineering and design staff or painting and insulation superintendents. The organizational structure of the support groups (such as that of planning and control, or procurement) is designed to support construction. Consequently, their organizational structures will also be designed in terms of the project control areas and unit segmentation of work effort. As illustrated in Figure 9.6, the planning and controls manager has area cost/scheduling managers, who, in turn, have unit cost/scheduling personnel. The cost/scheduling manager position for area X is also shown on the construction organization chart. The purpose of this approach is to lend cost/scheduling expertise to the unit general superintendent, yet have the capability of developing project management reports which roll up from the unit level to the area level, then finally up to the project level. In this way, the assistant project manager of planning and control can report project level problems (such as project-wide shortage of a particular craft) directly to the executive project manager. At the unit level, problems related to schedules, progress, and productivity can be discussed and solved directly with the unit general superintendent. This approach can be applied to the other support groups. Procurement will have expediters, buyers, and purchasing personnel. Field engineering will have engineering and design personnel for each major design discipline, material control specialists, and engineering specialists. Any other functions appearing at the project level will be staffed accordingly and all will follow the control area concept. Because the client participates heavily in the project management process, he will have a similar organizational approach. As mentioned previously, each project manager will often have a client counterpart. The client will also have an organization established at the area level. The construction manager will have a "client project manager" to interact with at the area level. The client's area organization will include a small technical engineering staff plus a cost/scheduling staff. These personnel will be responsible for ensuring that the specifications are followed, approving design changes, and analyzing progress and performance, to name a few functions. The client's area project manager reports to the client's main overall project manager. The size and complexity of the client's organization depends on project size, their own management capacity, and the confidence they have in the contractor's ability to perform the work.

Manpower Management Fnnctions: Tohl Field Autonomy

9.4 MANPOWER MANAGEMENT FUNCTIONS: TOTAL FIELD AUTONOMY

151

The number of control areas and units is established based on the size and complexity of thc project. The larger the project, the more control areas are specified, and the greater the number of unit managers required. This follows because the control philosophy is directed at achieving an optimum level of control for the field manhours involved in an area. On smaller projects the number of areas will be limited and the staff positions decreased. In this case, the organization chart would be similar to thc large firm except that there would still exist a project management level. The number of project managers would be less, and there may be some overlaps of responsibility, such as one project manager who is responsible for both planning and controls and procurement. The project team organizational approach discussed herein is a typical example of the philosophy of the Total Field Autonomy concept. The project team design is based on the control area concept, which attempts to optimize project and construction management through limiting the control area to a size that can be managed efficiently and effectively. All organizational levels involved in the project adopt this concept into their organizational structures. In this way, the project team is easily integrated to provide for the most effective project and construction management control at any level of reporting. Problems can be handled in a timely manner, decisions made, and solutions implemented without loss of time waiting for approvals. Furthermore, because all functions are located in the field, and the proper management authority is in the field, little interaction with the head office is required.* At all levels of project and construction management, the client can be approached and queried in the field when critical design problems arise and consequently decisions may be made without long delays. The manpower management functions performed by the project team described in Section 9.3 are inclusive of all the ideal manpower management functions. Consequently, in terms of the basic manpower management functions performed at this level (see Figure 9.7), there is no noticeable difference from that for the Field Based Management approach. The significant difference lies in the increasing focus applied to many of the manpower management functions. This increasing focus is evident from the changing complexity of the project team. As discussed in Section 9.3, a project management level emerges so that there is a substantial increase in management power and potential available to the project. Furthermore, the project team design and structure is based on project control areas, with each control area requiring its own specialist team members. These subtle changes in the project team organization are the result of increased project size and complexity, which ensures a significant manpower content and, even more important, increasing demands from the client for effective project management. Finally, the firm itself recognizes the need for greater emphasis on project management in order to maintain credibility in the industry and a competitive project manage-

* Technical engineering and design support will be required throughout construction and project start-up for the design-construct project with interactions between the head office and field continuing at technical questions arise.

PLAN P P1 CONSTRUCTION RECONNAISSANCE

S1 CONSTRUCTION SEQUENCE

P2 ACTIVITY DEFINITION

S2 ESTABLISH CONSTRUCTION SCHEDULE S3 DETERMINE PROJECT AND TRADE MANHOUR PROFILES

P3 QUANTITY TAKE-OFF

ALLOCATE A

SCHEDULE S

P4 ESTIMATE LABOR CONTENT

S4 DEVELOP WORK PACKAGE DETAILED LOGIC

P5 DEFINE WORK PACKAGE P6 DETAILED FIELD QUANTITY TAKE-OFF P7 ESTABLISH CREW REQUIREMENTS

S5 DEFINE CURRENT PROJECT STATUS S6 REVISE CONSTRUCTION SCHEDULE S7 SCHEDULE PROJECT CREWS

P8 PLAN WORKFACE LAYOUT

S8 SCHEDULE CREW MEMBER WORK SEQUENCES

Figure 9.7

WORK W

MONITOR M

RECORD R R1 HISTORICAL DATA BASE

A1 ALLOCATE OFFICE, ENGINEERING, AND DESIGN STAFF A2 ALLOCATE FIELD STAFF

W1 RELEASE STAFF TO PROJECT W2 PRE-JOB LABOR CONFERENCE

M1 SUMMARY PROJECT REPORTS M2 CURRENT PROJECT STATUS

A3 DETERMINE PROJECT AND TRADE MANPOWER PROFILES A4 DETERMINE NUMBER OF FIELD CREWS

W3 WORK FORCE MANAGEMENT

M3 PROJECT FORECAST

R2 GENERATE LABOR MANAGEMENT DATA R3 PROJECT COST ACCOUNTING

W4 ENFORCE JURISDICTIONAL AND SKILL LEVEL WORK ASSIGNMENTS W5 ESTABLISH FIELD CREWS W6 SOLVE HUMAN RELATIONS PROBLEMS W7 INITIATE INDIVIDUAL WORK TASKS W8 EXECUTE WORK

M4 ACTIVITY ANALYSIS

R4 UPDATEAND REVISE WORK PACKAGE SCOPE

M.5 LABOR ANALYSIS M6 WORK PROGRESS

R5 LABOR PRODUCTIVITY R6 QUANTITIES IN PLACE

M7 RESOURCE USE

R7 LABOR HOURS

M8 FIELD INSPECTION

R8 FIELD AUTHORITY DOCKETS

AS ADJUST CREWS A6 ASSIGN INDIVIDUAL WORK TASKS

Manpower Management Function chart-Total Field Autonomy approach.

Manpower Management Functions: Total Field Autonomy

153

ment approach. Thus project management will initiate more sophisticated management procedures and reporting techniques that focus on manpower management problems, whenever these methods seem appropriate and will often take the initiative in breaking new ground and in developing new techniques. Since all basic manpower management functions are performed under the Total Field Autonomy approach, the extent to which these functions are formally performed and the sophistication of techniques and methods used in their performance are critical to any comparison with the Field Based Management approach. Consequently, this section will highlight several of the key differences in function performance. Project team design, implementation, and control is a dynamic and ever-changing process under the Total Field Autonomy approach. While project team design considers the structure, desired level of management control, and manpower growth patterns, it also considers management efficiency and effectiveness. The later component is a distinguishing characteristic of the Total Field Autonomy approach. If the project team is not functioning properly as designed, changes are made. These changes can occur at any stage of project execution and are not necessarily associated with the initial planning stages, which is often the case under other management approaches. This continuous reevaluation of the project team's management performance creates the dynamic aspects of the project team design functions (functions A l , A2, and W2). A second area of noticeable change in function performance is related to the work package approach. Although the large firm utilized this approach, its techniques are rather loosely applied. The Total Field Autonomy approach concentrates on work packages in terms of a documented work order that precisely defines the work package. The key is the documentation of the work package as a work order. This work order is subsequently tied in to all company scheduling and control procedures. In this way, the work package becomes a traceable component of the construction effort from its inception through to its completion. An increased management focus is revealed at this management level, especially when viewing the control aspects of construction management relative to crew performance and activity progress. In the former case, crew performance (LABOR ANALYSIS and LABOR PRODUCTIVITY) is tied to a definite performance indicator which is well defined and considered manageable. In the later case, activity analysis looks at the construction method in relation to crew size, crew production, crew location to the workface, material and equipment locations, and material flow routes. In addition, activity analysis looks carefully at indicators of the effective use of the crew. This is often done in terms of evaluating aspects of "needless" work effort that can be eliminated by better field management of the work force. This type of control analysis is considered essential to streamline construction operations and improve productivity and progress, thereby reducing labor costs and ensuring that schedules will be met. The preceding paragraphs highlighted three basic critical differences

Total Field Autonomy

9.5 MANAGEMENT ROLES IN MANPOWER MANAGEMENT: TOTAL FIELD AUTONOMY

between the Total Field Autonomy approach and the Field Based Management approach. There are other differences which will be considered when reviewing the detailed manpower management practices of each management concept. This analysis is left to the companion volume of this series. In the final form of project team development, the Total Field Autonomy approach maximizes the team concept as the best method of project management in the environment in which it most commonly operates. The increasing focus on manpower management problems expands the management burden to its ultimate capacity. Consequently, the greatest number of project team staff appear at this level of project team development. Among this collection of staff appear many specialists (even at the project manager level) as well as the traditional construction personnel. Consequently, the allocation of the various manpower management functions to the various project team members is carefully considered during project team design and its development and control. Furthermore, the allocation of functions is continuously reviewed as the project progresses to ensure that the proper allocation of functional responsibility exists and a project team member's span of control is within acceptable limits. The allocation of manpower management functions to the project team members is described on the manpower management functions plot shown in Figure 9.8. This plot represents the design-construct type project. A specific project team member is shown on the plot only when his functional responsibility can be clearly defined. In Figure 9.8, this would include the project manager, quantity surveyor, estimator, cost/ scheduling engineer, methods engineer, cost accountant, labor relations expert, superintendent, foreman, and timekeeper. The remaining functions are considered as being performed by the project team. Consequently, for those functions that are covered by a project team plot, it is difficult to isolate functional responsibility to a single individual, which indicates that many functions are performed by a team of individuals. Thus most problems and decision processes are handled by carefully selected groups of managers and supervisors, each problem and decision process having its own mix of managers/supe~isors.It should be noted that a project team member with an isolated plot may also perform functions in the plot covered by the project team. The role of top management is completely limited in focus, as indicated by the plot of the executive project manager and the project management level in Figure 9.8. In terms of manpower management, the executive project manager performs only those functions associated with the critical problem of project team design, staffing, and control and the review of project level reports on status, progress, and labor productivity. This management focus applies to each of the engineering, design, and construction areas. His only participation in other manpower management functions would be on a management-by-exception basis as critical problems arise that require executive level action. Otherwise, the project management level handles the majority of manpower management problems for their functional areas, and the executive project manager is alerted only when his decision rcsponse is requested.

PLAN P

SCHEDULE S

ALLOCATE A

WORK W

MONITOR M

FIELD CREWS SUPERINTENDENTS

INDIVIDUAL WORK TASKS

RELATIONS PROBLEMS

INITIATE INDIVIDUAL WORK TASKS

PROJECT TEAM GROUP PLOT

Figure 9.8

Ideal division of manpower management functions: Total Field Autonomy approach.

RECORD R

Total Field Autonomy

The project management level has been described in Section 9.3 in terms of overall project responsibility. In relation to manpower management, the project management level's role includes project team design, staffing, and control for their individual responsibility functional areas. In addition, project management level personnel are involved with and perform functions which produce those reports on project status and performance that are pertinent to their areas of expertise. This level of management is still divorced from detailed manpower management problems, with the exception of manpower related items which require their direction and decision making authority. Thus personnel at the project management level (including the executive project manager) serve as the directing members and decision-making body of the project in an overall top-level capacity. This level of management organization and expertise should be contrasted with the project manager's role in the small, mediumsized, and large firm environments in terms of the growth of project management as a professional area. The project team plot in Figure 9.8 represents a critical concept that emerges at the Total Field Autonomy level, the team decision-making approach. The role of the team in manpower management affects all levels of function performance, beginning with project definition and continuing through field construction to project management. A team of two or more project team members is involved in function performance and, as a result, many meetings, some formal and others informal, begin to emerge with frequency. These meetings occur at all levels in the management hierarchy and are often scheduled on a regular basis when performing certain manpower management functions. The work package technique is employed to its full potential at the Total Field Autonomy level because of the team approach. As an example, many project team members are involved with the DEFINITION OF WORK PACKAGES (P5 ) , the SCHEDULING OF WORK PACKAGES (S4), and the CONTROL O F WORK PACKAGES (R4).In terms of WORK PACKAGE DEFINITION (P5), an area engineer is required to interpret drawings and specifications; a superintendent and a methods engineer establish the scope and work task requirements as well as deciding upon a construction method or possible alternative method. A cost/ scheduling engineer will evaluate the labor and material cost impact of each construction method against a budget and assign the cost code for the -proper allocation of man-hours. The cost/scheduling engineer, together with the superintendent and methods engineer, will determine the labor performance targets to be set for the work package based on the most economical construction approach. Once these steps are completed, the work package will be reviewed and accepted by an area engineer or general superintendent. Thus a team effort is employed to perform the WORK PACKAGE DEFINITION function (P5). The cost and scheduling functional areas are integrated at the Total Field Autonomy level by virtue of the manpower management role of the cost and scheduling engineer shown in Figure 9.8. The cost/scheduling engineer is readily versed in all aspects of cost and scheduling engineering.

Management Roles in Manpower Management: Total Field Autonomy

157

This is important because these functions are interrelated. For example, changes in scope must be identified in terms of both cost and schedule impact. Work packages require cost estimating analysis and scheduling impact analysis in reference to allowable budgets and target completion dates. These activities are best performed by the same individual to ensure a thorough and comprehensive examination of all costs and scheduling implications. Because the work package concept focuses on optimizing construction methods, and crew performance is often improved through method analysis, a new construction engineering expert emerges. He is identified on the MMF plot as a methods engineer. The role of the Methods Engineer in manpower management focuses on those functional areas that are oriented predominately toward construction method analysis. This would primarily include activity and crew planning (P5, P6, P7, and P8) and control (M4, M5, and R5 ) . The method engineering position first appears at the Total Field Autonomy level as a result of highly sophisticated construction planning and control techniques that continually focus on the detailed components of a construction operation. Since the construction method is one of these components, a full-time effort is required and assigned to a method engineering specialist. f

\ P5 DEFINE WORK PACKAGE

S4 DEVELOP WORK PACKAGE DETAIL LOGIC

Analyzes: construction method alternatives Designs: optimum construction method

Identifies: construction methods selected for various work packages Assists: scheduling when construction method warrants detailed scheduling

M4 ACTIVITY ANALYSIS Analyzes: current construction method in use Identifies: wasted time, delays, Location of men, equipment, etc. R4 UPDATE AND REVISE WORK PACKAGE SCOPE

P7

ESTABLISH CREW REQUIREMENTS

METHODS ENGINEER

Notifies: changes in construction methods as impacts scope of work package

Specifies: construction method P8 PLAN WORKFACE LAYOUTS Integrates: construction method with location of men, equipment, material, material supply routes, etc.

L Figure 9.9 Typical methods engineer manpower management job description plot.

Total Field Autonomy

The methods engineer performs functions previously covered by many diffcrent project team members at the various levels of project team structure. His position is a mix between the superintendent and field engineer, because he has both extensive practical construction experience as well as a technical engineering knowledge. A detailed plot of the types of duties and tasks the methods cngineer performs is shown in Figure 9.9. The labor relations area also expands at the Total Field Autonomy level. It not only includes those industrial relations areas discussed in Section 8.5 but expands to include public relations for the project. This would cover such areas as employee recreation programs, site tours, project functions, and performance programs, just to name a few. All these activities are directed at developing a project team spirit that is requisite to the successful integration of the project team. In summary, the roles of project team members in manpower management are designed to strive toward the integration of the project team. This is accomplished through a team oriented approach when pcrforrning a broad range of management functions. The superintendent and foreman plots remain basically unchanged from previous levels. However, these field managers often participate in other manpower management functions on a team basis. Finally, with the authority of the executive project manager and the guiding direction of the project management level, the successful application of the Total Field Autonomy approach can be achieved.

CHAPTER

10

Policies: The Portrayal of Management ~ttitude

10.1 E'OLICY FORMULATION

In every decision situation, decision makers are faced with the determination and evaluation of available alternatives and the selection of the best course of action (or alternative) from the many that are then available. Often, management wishes to guide the decision maker in his selection to a preferred course of action or offers him objectives and evaluation criteria so that he can determine that course of action that he knows will meet with management approval. In these decision situations the decision maker is expected to operate under policy guidance. A policy is theref o r ~a predetcrmined plan, course of action, or evaluative criterion that enables a decision maker to perform a decision function in accordance with management objectives. All companies have operative policies that are implemented by predetermined procedures for all delegated decision problem areas. Thus operative policies and their associated procedures can be used to characterize the management approach of a company. Policies originate either as initial management statements on how to cope with foreseen decision areas or are formulated as the result of a need to give consistent approaches to frequently arising problems. In the latter case, such policies may reflect the majority of historical decisions or be based on a newly established scale of values. Each policy will reflect management's assessment of the best methods, or course of action, to management problem solving. Thug policies reflect, and are indicative of, management attitudes and values with respect to the decision problems addressed by the policies. A policy is implemented via specific procedures that identify the functions required for problem solving and prescribe the desired order for the execution of these functions. In this way, top management can safely delegate decision making to those who have been instructed to operate within policy guidelines. Policies focus on the manner in which the manpower management functions should be performed. In some cases the policies merely point

Portrayal of Management Attitude

10.2 THE FUNCTION-POLICY PLOT

in the direction of desirable techniques, in others the policies are formalized in practice into specific rules, documents, and procedures that must be followed. Thus the management approach of a company (i.e., the way it operates) can be described by its entire range of operative policies. The identification and formulation of policies and the procedural implementation will be heavily influenced by the project environment, organization structure, and mode of operation of a firm. Generally, policies become more specifically defined and focused as the project team structure (and management attitude) becomes more complex and integrated in response to the needs of project management. Thus significant changes can be detected in the statement of policies for apparently similar decision areas with change in firm size. Firms operating in similar business and project environments having similar organizational structures and modes of operation are more likely to meet the same sort of problems and to have similar operative policies and company procedures. On this basis, operative policies and procedures can be examined which are characteristic of those associated with company's operating with specific project team structures. In general, the performance of a manpower management function will be influenced by, or constrained by, a number of company policies. Additionally, each management function will have its own unique collection of policies. Collectively, the set of policies will prescribe how the function is to be performed or will make a recommendation as to the techniques or documents to be used. Thus it becomes useful to identify the policies relevant to each management function. A simple approach to the portrayal of a function-policy plot is shown in Figure 10.1. In this figure the performance of function Fl is influenced by policies P2, P4, P5, and P11. A more practical example is shown (see Figure 10.2) for the ESTIMATION OF THE LABOR CONTENT (P4) of a construction activity or project as performed at the large firm level. The full function-policy statement would appear as shown in Figure 10.3. This is obtained first by referring to the Appendix for that portion of the full description of the basic manpower management function relevant to the level of performance and the management approach being considered, and second, by referring to the policy formulations as given in the relevant chapter. As indicated

I

I

I

FUNCTION Policy Policy

P I