Masonry Magazine April 1994 Page. 15
Is there a difference between car #1 and car # 2? Not in the fundamental components. They are both reliable transportation. But people differentiate on other qualities such as styling, appearance, and how the car is marketed.
In the future, there will be only two types of markets. One is the commodity market, and the other is the specialty market. Your cost structure will require you to analyze and target the different markets. To compete in the commodity market, you must be the low-cost producer. To compete in the specialty market, you must differentiate your service from the competition, a distinction which raises your cost structure above that of a low-cost producer. You have to be discriminating and objective about your company's strengths and weaknesses. Don't be a "me, too" company. Promote what is unique about your company.
Ask your people what makes your company unique. If they can't answer you within 30 seconds, you have a problem. If you find it difficult to be objective about your company, then call in someone who is qualified to evaluate the strengths and weaknesses of your firm. They will be able to guide you toward developing new expertise and skills needed to differentiate yourself from your competition. Figure 4 outlines some ways to differentiate construction services.
Strategy #3: Become Fanatical About Customer Quality and Service
A sign of the quality-consciousness of the times is the Malcolm Baldrige Award for Excellence. Everyone wants the maximum quality for his or her money because very few customers have money to throw around. The hallmark of the '90s will be an unrelenting devotion to quality and service for the customer. You don't like to receive substandard services and goods, and neither does your customer. The statement from Fred Smith, CEO of Federal Express, sums it up clearly: "Anybody who's unwilling to spend on quality is really mapping out a blueprint for liquidation." Figure 5 is an example of Total Quality Management in Construction.
It is imperative that you provide a level of quality and service that is distinctive to your customer. Distinguish this from over-used phrases like "on time," "within budget," "quality project with quality people."
Over a third of all direct labor costs goes to redoing work that was done incorrectly the first time. The quality contractor will also be the low-cost producer.
Strategy #4: Streamline Your Project Management System
To ensure and maintain quality and productivity, you must significantly increase field training and education. People, like machines, need preventive maintenance. Contractors often fail to understand that and end up neglecting their most important asset, their people. You must increase the caliber of your field manager's role to include planning, scheduling and client relations.
Most superintendents spend a great deal of time on the road, visiting their jobs. Once they are on the job, they must spend their time helping the foreman to plan out his next two weeks. They must discuss schedules, contingency plans, performance to date, and budget the time, effort and cost to finish the job. If your superintendent is not doing this, then move toward a two-tier project management system by eliminating the "superintendent" position. (See Figure 6.)
As you do this, increase the technical understanding of project managers and reduce their span of control to a maximum of three to five projects. At the same time, train your foremen to become field managers. They should schedule the equipment and labor resources that the job will require for the next two weeks. It is only after this schedule is prepared that the foremen should begin building the job. Any resources and support that they need should then be provided by the superintendent. The result is a scaled-down organization that is more flexible and that can react better to the dynamic market of the '90s.
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MASONRY EXCELLENCE WINNER
THE RUSS ENGINEERING Center, Wright State University, was voted the First Place award in Institutional category, at the first International Excellence in Masonry Competition. The project was submitted by Barbara Campbell of the Masonry Institute of Dayton. The award was received by Richard Matthews of KMCO, Inc., the mason contractor on the project. The masonry suppliers were Snyder Brick and Block and Wilson Concrete Products. The architect was Don Porter of Levin Porter Associates. The center is the primary site of the teaching and research activities of the College of Engineering and Computer Sciences. The building is organized around a four-story atrium space which provides an abundance of natural light and serves as a visual focus. The use of brick, stone and bronze glass visually integrates the facility with the campus. Student, faculty and community response to the center has been one of great pride.
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