Lean Methods Improve Project Metrics
As a CM, Tocci’s final product depends on quality work from trade partners.
When delivering a quality project, measuring performance is key to accountability. To help with trade partner selection and perform due diligence, we use project management metrics to track what help us work more efficiently.
One such Lean construction metric is “First Pass Yield” for submittals.
First Pass Yield (FPY), also known as First Time Yield or Throughput Yield, is calculated from yields of individual processes without re-work (first pass). FPY is calculated by dividing units entering the process, minus defective units (regardless of whether they were discarded or fixed), by the total number of units entering the process. Many measures of productivity and efficiency fail to account for the cost of rework, and rework can consume a significant portion of value of the process in question.
To calculate first pass yield for the submittal process, first we collect the following data:
- # of submittals/resubmittals received from trade partners and returned to them for correction prior to submission to the Design Team
- Total # of submittals sent to the Design Team
- # of submittals sent to the Design Team and approved on 1st submission
- # of resubmittals sent to the Design Team
This process demonstrates Tocci’s due diligence in reviewing submittals, also showing the Client/Design Team how we examine information before passing it along. Further, it’s an objective measurement that is fed back into the trade partner prequalification system to identify trade partners meeting Tocci’s performance standards.
Rework wastes time and money for all involved. By implementing this process, we ensure project specifications/drawings are carefully reviewed and the scope is comprehensive, reducing the number of change orders. These metrics are included as performance standards in trade partner contracts. They have a trickle down affect in the industry, elevating performance levels expected from trades – similar to Toyota’s standards in the automotive industry through Lean manufacturing methods.
This data highlights potential inefficiencies, improved through use of more Lean processes. This is only one of Tocci’s data collection metrics!