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October 2005 - Save Time, Money, with Integration Technology
By A. Larry Aaron, CCE AVS,
President, T&M Concepts
Businesses face continuing pressures to be profitable and efficient. They must find ways of doing things faster and cheaper without sacrificing quality. Many believe it’s not possible to save time and money without sacrificing quality. But we know from experience that any process or operation can be made more efficient and effective by:
In the construction industry, one way to achieve all these objectives with a single solution is by using technology – specifically, integration technology. Integration technology accomplishes many of the above objectives. It reduces manual operations and eliminates steps, reduces complexity, and eliminates handoffs. Fewer handoffs mean fewer communication mishaps and fewer problems. This reduces errors and rework, which produces faster turnaround time and lower costs.
Surprisingly, many have elected to not participate in the investment and rising use of technology. A recent survey of contractors by WinEstimator Inc. found that 17 percent are not using computers and only about 6 percent are using dedicated cost-estimating software. These companies are examples of an industry that still uses manual systems, depends on weak technologies such as underdeveloped electronic spreadsheets, and spends a too-small portion of their revenues on employee training.
Several types of information in the construction industry are ripe for technology integration.
Project Management Documentation Tracking
Because construction is a multi-party and communication-based process, if the information cycle is made clearer or shortened through technology then it is worth pursuing. Anything that improves information sharing between the designer, owner and contracting parties is better. Project management documentation tracking software (Expedition, Prolog, Buzzsaw, Constructware, PrimeContract, etc.) makes this a reality by sharing common data across all disciplines and parties. Purchase orders, submittals, requests for information, meeting minutes and many more functions are all shared across a common database. Some systems are hosted by a server with purchased software, others are Internet-based systems with a monthly per-user lease fee. Although each of these commercial systems has its unique problems and quirks, many companies are reporting big improvements in productivity, communication effectiveness, cost, and time with their use.
Estimating
The construction estimating process has the makings for technology integration because of the information-sharing aspects that transcends multiple phases and parties. Because estimating is one of the first steps in the project management process, it is common for estimating to be the source of information for other downstream systems. For example, from an estimate comes budgets into accounting systems, durations and descriptions for scheduling systems, lists of materials for material requisitions and purchase orders, headcount projections for staff planning and labor hour baselines for productivity measurement systems. There are several estimating software packages available that provide various degrees system integration capabilities such as WinEst, Timberline Precision, MC2™ and many more.
Design/CAD
Because design is an early phase in the construction process, it defines the design elements and cross-connects all project phases and parties, it is also worth looking at for opportunities to use technology. We have all experienced the advances that have been made in computer-aided drafting systems in the last 20 to 25 years. But CAD is just coming of age. Due to integration technology pressures, there is a push in the industry to make the CAD graphic objects “smart” by attaching dimensions, weights, specifications, costs, and other attributes to them. As the CAD drawing information makes its way across project phases, parties and disciplines, the materials, cost and schedule data will go with the object.
Field Accessible Data
As wireless technologies advance, we will see more ways to transfer CAD and other data to the field. Wireless mini-laptops are making an escalating impact on many industries that need data on site in a larger format than can be displayed on a cellular phone. These Tablet PCs allow pictures, drawings, full-page reports, and project management information to be available at the side of a ditch so decisions can be made and problems solved in real time. Estimates and change orders can be processed on the spot. Tablet PCs also accept electronic pen handwriting input, so drawings can be marked up in the field and comments transmitted immediately to the designer’s and owner’s offices.
Material and Tools Tracking
Another area of opportunity for integration technology is in material and tool tracking. Comprehensive material and tool tracking systems start with design specifications, go through procurement, expediting, shipping, delivery, storage and retrieval and finally asset management. Many contractors use manual methods or spreadsheets to track the status of materials. Some project management documentation systems do various degrees of material and tool tracking, but it is safe to say that there is not a comprehensive end-to-end solution available – yet. We are hoping that a new technology, Radio Frequency Identification, will help catapult material and tool management to a greater degree of procurement control, reduce loss and theft and integrate with existing project management information systems. This technology is similar to the tags that are found inside electronic parts and media packaging that some stores are using to prevent theft. When successfully adopted, RFID would replace bar coding with a code that has tremendous capability—enough to track every grain of rice in China. Wal-Mart has made a major commitment to this technology, and several universities and technology companies are investing research and development funds in RFID.
The technology train isn’t coming – it has arrived. It’s time for all parties, especially contractors, to get on board. Unless they change soon, they will be left in the dust and put out of business by their cross-town rivals who become increasingly more competitive by pursuing the cost- and time-cutting integrated technologies discussed here.
A. Larry Aaron, is president of T&M Concepts, a Las Vegas-based construction estimating and scheduling consulting company that helps companies adopt, learn, and use time-saving technology. Aaron is a certified cost engineer, an associate value specialist, and a member of many professional associations including AGC.
