Total
Construction
Service
Total Construction Service
A construction company
offers customers
products including
a range of clearly defined options
a range of financial options
servicing and maintenance packages
a firm price and fixed completion date
Industrialised Housing
Housing using factory produced
standardised components
provides the basis for
many of the best examples of
Total Construction Service companies
This is because there is
a large demand for housing
Industrialised Housing
• Customers are offered a wide range of
choice in the size and layout of their houses
• Sales offices enable customers to discuss
their needs and consider the latest designs
• Show rooms enable customers to see and
try the options
Industrialised Housing
Industrialised Housing
• Once a design, price and completion date are
agreed
• Parts and sub-assemblies are manufactured
• The site is cleared, and foundations and
underground services are produced
• Prefabricated components are delivered and
assembled
• The completed house is handed over
Industrialised Housing
• World class quality
• Quality circles require teams to relentlessly
improve their own performance
• Companies invest in training their staff
• R&D departments steadily improve the
products and working methods
• Companies hold seminars with customers to
discuss possible improvements
Industrialised Housing
Company Strategy
Use
TOTAL
CONSTRUCTION
SERVICE
Development
Feedback
Production
Total Construction Service Companies
undertaking General Construction
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Develop over many decades
Build secure demand
Focus on quality and efficiency
Develop long term relationships
Invest in their staff
Invest in R&D
Total Construction Service
• Process delivers:
• Reliable quality – facilities complete at
hand over and fully working
• Completion exactly on time every time
• Highly efficient as judged by many
international research studies
• Excellent safety record
Brief
• Results from discussions between customer’s
organization and total construction service
company sales staff
• Sales staff actively search for opportunities
where construction can provide real benefits
to a customer’s business
• Brief is very detailed and describes
everything the customer needs
Design and Plan
Produced under the direction of
experienced project manager
using highly developed systems
which embody the company’s
design details and
construction methods
Design and Plan
• Drawings show every detail of every element
• National standards mean the specification
can be very brief
• Every days’ production is planned in detail
• Procurement and manufacturing planned to
feed into the production plan
• Commissioning is planned in complete detail
including setting exact targets for every test
Procurement
• Project manager selects subcontractors
from amongst those who have worked
with the company for decades
• Project manager states the work to be
done, the exact dates it will be carried
out and the price to be paid
• The subcontractors agree
Manufacture, Production and
Commissioning
• Project manager and his team based on site
• The project manager briefs the whole work
force at 8.00 am
• Project manager meets with all the foreman
at 3.00 pm to solve any problems and agree
the next day’s work
• Deliveries are made exactly on time
• Work continues until the day’s work is
complete
Quality and Safety
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Use tried and tested methods
Measure performance continuously
Safety built into production methods
Use protective screens
Keep site tidy
Driving principle of doing work right first
time
• Correcting mistakes costs much more
Problems
• Tackled immediately
• Delays corrected by working longer days, at
week ends or bring in night shift
• Project returned to original plan as quickly as
possible
• Nothing ever allowed to cause a project to
finish late or cause a customer to be asked
for additional money
Quality Circles
• Teams meet every week to discuss work and
identify and consider improvements
• Best ideas are taken to research institute
• Ideas which provide real benefits are discussed
with all likely to be affected
• Tried on one project and evaluated
• If the benefits are real, the idea is adopted
• Team performance evaluated every six months
Research Institute
• Key part of company’s success and
reputation
• Most successful companies have large
well staffed and equipped institutes
• Support project teams
• Do long-term research into major
improvements
• Produce eye catching ideas for the media
Total Construction Service
Performance
• International comparisons suggest
construction costs about 25% lower
than alternative strategies
• Quality more reliable
• Completion on time significantly
more reliable
Total Construction Service
acts on the following propositions
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Reduce the number of teams involved
Improve the quality of relationships
Reduce performance variability
Reduce external interference
plus
Total Construction Service
acts on the following propositions
• Select teams competent in the technologies
required by the project
• Ensure teams accept the agreed objectives
• Ensure teams are motivated to achieve
agreed objectives
• Foster accurate communications between
teams
• Minimise the effort needed to achieve
accurate communications between teams
Total Construction Service
acts on the following propositions
• Minimise the length and intensity of
negotiations over the transactions which
bring teams into the project organization
• Ensure teams regard the transactions as
advantageous to themselves
• Minimise the resources teams devote to
improving the terms of the transactions
which brought them into the project
organization
Total Construction Service
acts on the following propositions
• Satisfy the requirements of local or specialised
markets to ensure company’s survival
• Develop teams with well developed skills and
knowledge which match the requirements of
projects
• Develop teams integrated by established
relationships
• Improve the quality of support provided to
teams by their companies
Total Construction Service
acts on the following propositions
• Foster innovations which match the
requirements of projects
• Ensure the use of effective information
systems
• Establish values which run consistently
throughout their organization
• Ensure their organization acts in ways which
are intended and authorised
Total Construction Service
acts on the following propositions
• Ensure communications are effective and
result in common understandings
• Ensure transactions are agreed with
minimum effort, accepted as fair, foster
established relationships, and are acted on in
the spirit in which they were agreed
• Ensure their organization forms established
relationships with other organizations
Total Construction Service
acts on the following propositions
• Ensure their organization collects, reviews
and acts on feedback about the effects of its
action on its objectives
• Ensure their organization collects, reviews
and acts on feedback about the effects of
established norms and procedures
Project using
Total Construction Service
The project is to construct a new hotel on a
virgin site. The hotel has 300 guest rooms
and the other spaces expected in a 5* hotel
The building is 10 stories high with a steel
structural frame, concrete beam floors and
roofs, and high quality, pre-fabricated
external cladding.
Brief
Design
Plan
Procurement
Manufacturing
Production
Commissioning
TOTALS
Teams
1
10
1
4
8
32
4
60
Team-days
80
460
50
120
150
1340
100
2300
For a project with 60 teams (N=60)
Possible relationships = 60 x 59/2 = 1770
1196 of these do not occur
Actual relationships 1770 – 1196 = 574
Largest number of teams in one time interval
is 20 in 13th time interval
Technical design teams are producing
production information for the last remaining
components
Half of the manufacturing teams are
manufacturing fully designed components
Substructure production is in full swing
The work is supervised by the control teams
20 x 19/2 = 190 possible relationships
During the 13th time interval the following
teams work simultaneously
2 out of 4 technical design teams
2 out of 2 production information teams
2 out of 2 plan and control teams
1 out of 1 contracts and payment system teams
4 out of 8 manufacturing teams
3 out of 3 substructure teams
This gives a total of 14 teams with
91 relationships
Established Relationships
Every team on a project has established
relationships with at least one but often
several other teams giving a total of 568
established relationships
Established Relationships Indicator
ER=568/574=0.99
The relationship fluctuation indicator
FE = 0.99
This reflects a strong influence of established
relationships throughout the project because
both ER and FE are comparatively really high
Total construction service companies are based
on established relationships developed over
many past projects
Relationship Quality Indicator for established
relationships ranges from 0.95 to 0.99
Total Relationship Quality Indicator
560/574=0.98
The high number of established relationships
together with the number of high values for
individual Relationship Quality Indicators means
the total Relationship Quality Indicator is good
because the 568 established relationships out of
possible 574 relationships are of very high
quality
The project organisation is not overly complex
There are 30 time intervals out of a potential
maximum of 119
The intervals are relatively short in comparison
to total project duration (prevent escalation
of problems when teams interact for a
prolonged period)
Relationships configuration complexity
indicator = 0.83
The past performance of the 60 teams over
their previous 10 projects provides team
Performance Variability Indicators which
range from 0.95 to 1.0
Performance Variability Indicator
Rp=0.99
Historical records for projects using
Total Construction Service gives
External Interference Indicator = 0.84
Project using
Total Construction Service
Established Relationships
ER=0.99
Relationship Fluctuation
FE=0.99
Relationship Quality
QR=0.98
Relationship Configuration CR=0.83
Performance Variability
Rp=0.99
External Interference
I=0.84