Business development/innovation/Entrepreneurship

MT Højgaard: The people behind the machines

7 February 2013

– On optimizing productivity in the construction industry

New management methods are gaining ground everywhere, and one industry that is particularly in focus is construction, as optimization of productivity on construction sites has been stagnant for several years. A study prepared by civil engineers specializing in construction management at Aalborg University, Department of Production (LINK) shows that only 30 % of the time on a prefabricated construction site is used for productivity. It is strikingly small when you see it in black and white. And what about the last 70 %? They must be able to be utilized better.

Lederindsigt.dk has presented the results of the survey to MT Højgaard in order to get a little deeper into the problem and shed light on the measures that can optimize productivity. Process consultant Kristine Ann Barnes tells here how they at MT Højgaard work focused on optimizing productivity and managing the work flow on a construction site to minimize wasted time. They do this using planning with cyclograms and type-based construction management teams. These are effective methods that can also be transferred to other industries.

Theme: optimization of productivity
By: Louise Lundgreen

Business development/innovation/Entrepreneurship

MT Højgaard is one of the Nordics' leading construction companies. The company cooperates with customers all over Denmark and several places abroad. They solve everything from the smallest building and construction tasks to very large and complex buildings, infrastructure projects and installation of offshore foundations for offshore wind turbines.

"The hunt for waste"

The starting point for the study entitled "The hunt for waste", which shows that only 30 % of the working time is used for production, is the stagnant productivity development in the Danish construction industry since the 1970s. The study focuses on improving productivity by reducing waste. The purpose is primarily to clarify the distribution of working time on an element assembly, but also to shed light on the waste associated with the assembly work. In this context, the concept of waste is defined based on LEAN production. Waste is the time that does not add the product, i.e. the construction, any value.

The study was made on the basis of two measurement methods; a frequency study and measurement of a duty cycle, which is divided into seven categories. As can be seen from the figure below, 30 % of the time used are produced/assembled. 30 % of the time is used for assembly (production), 31 % is used to talk about how it e.g. must be installed in which order, and then preparations must be made before production can begin. It is the last 39 % of the time, when there is pure waiting time or time when the employees are away, that MT Højgaard would like to do something more about.

Waste: go, away, wait: 39%
Preparation: preparation, interview, transport: 31%
Production: production / assembly: 30%

A much better overview of the process

At MT Højgaard, the study is well known, and it is known that LEAN production is an effective method that increases productivity. At MT Højgaard, they use area-based planning, also called cyclogram planning, which, according to Kristine Ann Barnes, gives a much better overview of the construction process.

Planning with cyclograms. Line-of-balance or Location Based Scheduling, as it is called in English.

- It is a tool that we use to create more LEAN on the construction sites. We experience an even flow in the construction process when we plan with cyclograms, and the method differs by being area-based. That is that we have all the locations with us, so that we can see where all the craftsmen are on the entire construction site and which tasks they solve at given times. It is this overview that allows us to minimize our wasted time. Because no one is sent out to the square to look after themselves. We always know which tasks the employees perform where. They themselves have helped to estimate time from location to location, so we avoid gaps in the schedule.

"Cyclogram planning is not new in construction, but the method has not been used for many years. The Empire State Building was built based on this method in 1930. According to Lean Construction DK, more and more people have started working with the methods again, partly because cyclogram planning has been made easier by various software solutions.

- The software allows for good and detailed planning, and our previous system was not set up to work with locations, so it has made the work significantly easier after we switched to cyclogram planning. The locations are named after the areas (areas) in the construction. Area A in an apartment complex is 1. th. Area B is 2. th. etc. That way, we can always see where the craftsmen are working and when they are finished, emphasizes Kristine Ann Barnes.

Program for cyclogram planning can be downloaded here for free for 30 days http://www.vicosoftware.com

An efficient construction process with TrimByg

According to Kristine Ann Barnes, cyclogram planning is not the only approach they use when they want to achieve a good work flow. Overall, they have encapsulated the various approaches into the concept TrimByg.

- The aim of TrimByg is to create the most efficient construction process. Construction is a major logistical task, and we therefore focus on streamlining the changing and complicated processes of construction by operating with rolling planning. With the cyclograms, we can register deviations when they occur, and we immediately launch the necessary initiatives and follow up on them. In this way, we ensure, as I said, that production maintains an even rhythm.

The craftsmen are involved in the planning

MT Højgaard involves the responsible craftsmen in the planning, as they are usually the best at setting the order in the process ahead of the contractor manager, who does not always have the same contact with the work.

-We sit down with the parties involved, and all the activities are set up, and we determine what must happen in which order. We try to put it into the cycle immediately – both which activities are involved and how long they take. If we can then see that there are gaps and the rhythm will be broken, we will find out whether we need to hire more craftsmen, whether we need to tighten up purely in terms of time, or whether we need to change the order of the tasks. The involvement also makes the employees more engaged in the process, says Kristine Ann Barnes.

The good flow is the alpha and omega for the construction to progress optimally, and the good flow is also created by the fact that it is the same craftsmen who work on the project.

-If there are too many prolonged stays in a craftsman's work, he will typically be sent by his master to another construction project. We therefore risk that important knowledge is lost, as it is often not the same person who comes back to the task when it is ready to be resumed. We therefore place great emphasis on the human qualities in our buildings, states Kristine Ann Barnes.

People and communication at the center

To create an overview of the entire production process, MT Højgaard puts people and communication at the center. A construction project involves many people who must communicate about everything from resources, activities, site logistics and weather to ensure that everyone has the necessary information to meet the client's expectations. It is an extensive task which, according to Kristine Ann Barnes, can only be solved with an effective construction management team.

- So far, we have put together our construction management teams based on Belbin's nine different types, so that we ensure that the team achieves the best work process and that the construction process progresses optimally. There must, among other things, be a starter who sets things in motion. An analyst who looks at drawings and does the calculations. A finisher must get the project back on track. It is super important that the team utilizes the different abilities they have and that all competencies are put into play. They must be smart together – not individually, and they must know the importance of their different roles.

The types also ensure optimal communication between the parties. And when communication works well, the team works well too. When the team works, the construction process is optimized.

The good working environment contributes to productivity

A good working environment is also of great importance for the ability to increase productivity. They experience this at MT Højgaard, and they continuously work to improve the working environment by constantly focusing on the people behind the machines.

- We are striving to create a common canteen for all the employees on the construction site, so that we avoid people "hiding" in each of their garbage trucks. It strengthens the work process when you meet, and it also strengthens unity and understanding of each other's work. The individual can also better see himself in the flow when he sees himself in the context of all the other employees, whom he does not see in his daily work. It's really quite simple, but very important when you're dealing with such large constructions and employ so many different people, says Kristine Ann Barnes.

Many industries can use cyclograms

Kristine Ann Barnes has 24 years of experience in planning construction processes, and she sees parallels with other industries.

-When we only look at the cyclograms, it is generally a fantastic planning tool, which I see can easily be used, for example, for planning an individual event or a large event. It keeps track of who is where, when and what tasks the event consists of. You can thus constantly keep track of where people are and what tasks they are solving, and at the same time you have the opportunity to keep an overview of the tasks that lie in the future.

-Type determination of employees is widely used in both recruitment and composition of teams, but I can highly recommend making the members of a team more aware of the role they have, thus ensuring that all skills are put into play. Teams simply work better when there is a clear division of roles, concludes Kristine Ann Barnes.

The TrimByg concept

TrimByg is a process management concept that provides less waste, greater efficiency and increased value. Through five steps, MT Højgaard seeks to create the most efficient construction process for all parties involved.

Organization – which requires cooperation
They define the distribution of roles on the construction site early in the process and ensure a clear distribution of responsibilities and tasks between the central actors. And then they introduce a central process management.

Planning – which focuses on the prerequisites
They focus on the prerequisites and prepare the activities thoroughly at the start of the construction process. On the construction site, they subsequently work with a short planning horizon to increase predictability and ensure healthy activities.

Coordination – ensures the best possible working conditions
Process management supports collaboration across the construction site's actors and ensures ongoing cross-cutting coordination of the individual activities. In doing so, they create an even work flow on the construction site and ensure the optimal result for the project.

Follow-up – so we don't repeat mistakes
They continuously record whether the construction is following the plans, so that they can optimize the process. If they identify that something is going wrong, they find the cause, evaluate the incident and ensure that the error does not occur again.

Evaluation – with a focus on knowledge sharing
Between projects, they evaluate the collaboration, the construction process and the experiences from the individual project. In this way, they ensure that the good experiences are passed on, so that they do not repeat the same mistakes in the next project.

 

Last updated 22 September 2022

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