Tuesday, June 12, 2012

Lean Construction : Utopia ?

About technology, business & management issues..






Much has been written and read about the latest fad in the construction industry: the lean approach taking back some principles of lean manufacturing.  It's funny how a methodology designed and implemented for the manufacturing industry tend to expand to other industries or service companies.

The construction in Mexico is not immune to this phenomenon: during the last 25 years people have tried to reinvent the wheel. Since the consolidation of professional project management, for over 30 years in America and Europe, and with as little over 20 years of introduction in Mexico's construction industry has tried to implement different philosophies in order to standardize their processes .  If we look at history we could find two major events: the certification of ISO-9000 type and the philosophy of "total quality in construction."

In the early 90 `s in Mexico everyone spoke of the ISO. There were many certifiers and companies invested substantial financial and human resources in order to achieve certification. Construction in Mexico was not an exception. While it was thought that by means of defining processes, policies and specifications within the company people will adopt these changes, through a simple induction, reality faced a complicated situation. At least 80% of the workforce (permanent or temporary) in a structure of a construction company is cheap labor and low skilled. The rotation of staff is permament so there was no interest in the companies to  invest in training their workforce (as opposed to manufacturing) and this meant that the process could never be faithfully adopted. The result was an oversight of the certification years later. As of today it is difficult to find a major company that has an ISO type certification.

Later, by the late 90's, there was  the fashion of the overall quality of construction. More than a methodology, it was a philosophy of work that included extensive  rework by companies in their planning and design stages. If you spent time on this, it was said, the savings are considerable and the value added of the final product would make a difference. ¿Planning?, Many owners felt hives at this.

While philosophy was more readily applicable to the construction industry it involved a series of policy changes that aimed at standardization and professionalization of the company. The latter did not happen in Mexico. How could it be if the building is almost an art and a craft process?,-Said some  clueless managers out there. Now the consultants and similar species are trying to move the concepts of lean manufacturing into construction field. Now talk of "zero waste", "alignment of customer needs with the company", "generation of added value" is the new kind in town.

 It's funny but if you read any book of project management you´ll find that  these concepts are mentioned there. What's new with lean construction anyway ? - Nothing, it's just another fad in which several employers will fall to only realize after a few years that this philosophy it is exactly the same thing they had previously been trying to implement.

 It's the same dog but with a different name.

www.clarensyst.com.mx

Tuesday, June 5, 2012

Project Manager: the wrong idea.

About technology, business & management issues..




The concept of the Project Manager has varied greatly over the last twenty years in almost anywhere in the world. Originally it was thought that the project manager was responsible for the planning, execution, closure and implementation of a project.

Typically these projects were related to the fields of engineering in industrial areas such as construction and mechanical equipment. In recent times some other industries have systematized execution models as service companies or software developers have adopted the role of project manager in its operations. However in the last decade in Mexico, thanks in part to the professionalization of processes within companies, consultancy has idealized the idea of ​​the project manager in a somewhat romantic role but certainly not really aligned with the status quo mentality that prevails in many Mexican companies, particularly those engaged in industrial construction and property development.

- "The Project Manager should be in charge of the business unit," say pompously consultants and business leaders in Mexico. The idea is that the Project Manager is responsible for all areas of a project such as administration, sales and marketing. However, this domestic model enhances the whimsical minds of business owners but does not tackle the real problem.

Reasons? Lots ofthem: directing & supervising the operations of marketing, finance and management within a company involves a knowledge of the business that not all project managers (with a more technical background)  do not fully master. Moreover, the project manager works mentally for projects, from conception through implementation and ending with the closing. Being aware of other business areas involves constant attention and dedication that you are more likely to apply to a CEO role than someone who sees life through a series of projects.

On the other hand, perhaps the strongest reason passes for real empowerment in decision making. In theory, the project manager has the power to make financial decisions,  resolve operational and sales process issues, but in reality the micromanager that all owners have installed in themselves is constantly blocking  the PM do his work which undermines any attempt to develop as a business unit and turns the PM into a simple coordinator or  much-alike a personal assistant.

The funny thing is that the tendency to view the PM as the "cornerstone" of the business is still valid no matter how often they hit themselves against the wall.

www.clarensyst.com.mx