Jim Kellett Takes the Lead at ECAO 2011 ECAO Industry Conference

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MEASURING PRODUCTIVITYImpact of Overtimeon Electrical LaborProductivity:A Measured Mile Approach By Dr. Awad HannaElectrical contractors are frequently facedwith the need to compress or accelerate theconstruction schedule as a result of addedscope, delays and/or a late start of activities.The most common approach to scheduleacceleration is the use of overtime and/or extended overtime. Extended overtimeoccurs when workers are required to workmore than 40 hours per week for longer thantwo consecutive weeks. Extended overtimecan be implemented using a variety of crewscheduling techniques, including five workdaysat 10 hours per day per worker – alsoknown as 5–10s – or by using 5-12s, 6-10s,6-12s, 7-10s, or 7-12s. However, researchhas shown that extended overtime resultsin increased fatigue, decreased productivity,a greater risk for injuries or accidents, andincreased absenteeism and turnover. Asa result, extended overtime significantlyincreases the cost of construction projects.Past research studies concluded that placingworkers on scheduled overtime reduceslabour productivity. Although several researchefforts have studied the effect of overtime onlabour efficiency, these studies have unknowndata sources and were conducted manyyears previously.A recent study commissioned and publishedby Electri International and authored by ProfessorHanna, President of Hanna ConsultingInc., and Professor of Construction at theUniversity of Wisconsin-Madison focused onthe analysis of scheduled and unscheduled(sporadic) overtime on labour productivityusing the Measured Mile Method. TheMeasured Mile Method (MMM) is the goldstandard of productivity loss measurements.This approach compares the unit productivitylevels during unimpeded time (during thereference schedule) to those during impactedtime (when using overtime) in order todetermine how significantly the project’sproductivity was impacted. The theory isthat the difference between a contractor’sProductivity110%100%90%80%70%Cummulative Productivity of 5x10 Scheduley = 0.0042x 2 - 0.0808x + 1.0945R 2 = 0.9687actual inefficient productivity and an identifiednormal productivity is the amount ofexcess cost to the contractor as a direct resultof labour inefficiencies and loss of productivity.As it is a reliable and widely acceptedmethod, this new study utilizes MMM toform the basis of a model to predict andforward price overtime labour inefficiencies.The MMM was successfully used in theNatkin & Co. v. George A. Fuller Co. (347y = 0.0035x + 0.6818R 2 = 0.636160%0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21WeekFigure 1- 5-10 model and Comparison to 1969 NECA ModelNECA HighNECA AvgNECA LowOntario Electrical Contractor38
F. Supp. 17(W.D. Mo. 1972)) case: the courtfound that comparing the unit costs duringthe impacted and unimpacted periods was areasonable manner in which to compute thedamages, and Natkin was awarded its lostproductivity damages. Moreover, in ClarkConcrete Contractors, Inc v. General ServicesAdministration (GSBA No. 14,340, 99-1BCA (CCH) (1999)), the Board permittedOmni (the contractor) to recover damagesof more than $1 million for lost productivitybased on the measured mile analysis.3. There is a direct correlation betweenlabour inefficiency and the duration ofovertime use.4. Despite productivity losses related toovertime, placing an electrical crewon overtime schedule is more efficientthan overmanning.5. The data collected for this study waslimited to electrical workers for projectsexecuted between 2004 and 2008.6. The measured mile method was used inthis study, which compares periods of timewhen the regular 40-hour work week wasutilized to overtime schedules of 50 hoursor more. The measured mile technique isa widely accepted and accurate method ofcapturing labour inefficiency.Use of The New StudyIt is widely and legally recognized that inefficiencyfactors cited in the National ElectricalContractors Association (NECA) study andThere were two components of this newstudy: qualitative and quantitative. Thequalitative aspect aims to document theviews of electrical contractors regarding theuse of overtime and other schedule compressiontechniques such as overmanning andshiftwork. The quantitative component dealswith macro and micro analysis of overtime.The macro and micro approaches are usedfor analyzing the impact of both sporadic andscheduled overtime. The macro approachis used to analyze projects where no fixedovertime schedule is utilized or mixed workschedules are used throughout a week. Themicro approach is used to analyze projectsthat utilize a fixed overtime schedule, such as5x10 or 6x10 throughout a certain numberof weeks. This new study presents the resultsof a statistical analysis of productivity datacollected from several projects that used avariety of overtime scheduling techniques.The statistical analysis includes severalproductivity models that can be used toestimate electrical labour inefficiency withina project, given both its scheduled overtimeper week and the total successive number ofweeks of overtime. Figure 1 compares theresults of the new and old NECA study onthe impact of 5x10 overtime schedule onlabour productivity.Additional conclusions and scope highlightthe findings of this study:1. Placing an electrical crew on scheduledor unscheduled overtime reduces labourproductivity and increases labour costs.Bucket Trucks, Digger Derricks,Stringing Gear, and more...EVERYTHING YOU NEEDTO GET THE JOB DONE• Equipment Locations Throughout Canada• Nationwide Service and Repair Network• High Selection of Late Model Units• Immediate Equipment Availability• Flexible Rent or Rent to Purchase OptionsView Our Full Inventory Onlinewww.nescosales.com2. A greater number of hours workedbeyond the regular 40 hours per week isrelated to higher productivity losses.Eastern Canada1-866-816-8941Western Canada1-877-513-6848SDP 4100Commercial Equipment Corp. is an authorized distributor for Nesco, LLC.Ontario Electrical Contractor39
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Page 10 and 11: ECAO PRESIDENTJim KellettBy Angela
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Page 14 and 15: ECAO CONFERENCEPURA VIDA!!TThe Elec
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Jim Kellett Takes the Lead at ECAO 2011 ECAO Industry Conference

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