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E50 - Lean Management and Efficient Processes for Contractors

In the milestone 50th episode of 'Beers with Contractors,' hosts Will and Terry welcome back former host Dillon Cott, now an Operational Excellence Manager at FlintCo. The episode dives into lean management principles, the importance of investing in and empowering employees, safety practices, and the role of general contractors in large-scale construction projects.
 
Dillon shares insights from his diverse career in construction, emphasizing the value of continuous improvement and respect for people. The discussion also includes practical advice for small companies aiming to implement efficient processes and improve workforce management.
 
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Have questions for the next Q&A? Email me at will@unisonworx.com

Reflecting on 50 Episodes

Hosting 50 episodes is no small feat. As we sipped our beers and reminisced, it became clear how much we've grown, not just in number but in the richness of our discussions and the engagement of our community. Terry and I were ecstatic to see the support from our new subscribers and the interactive audience that has become part of the "Beers with Contractors" family. This celebratory episode wasn't just about looking back but also about learning from the experiences and mistakes we've encountered along the journey.

Understanding Operational Excellence

Dylan Cotten's new role at Flintco as an Operational Excellence Manager was a highlight of our conversation. What exactly does this title entail, and how does it translate to improvements on the job site? Dylan explained that his role primarily focuses on optimizing workflows within the company. By identifying obstacles and roadblocks from both leadership and frontline workers, operational excellence aims to enhance efficiency and reduce redundancies.

The Fundamentals of Lean Management

A substantial portion of our discussion delved into the principles of lean management. Defined as continuous improvement and respect for people, lean management finds its origins in the manufacturing sector, particularly with Toyota's famed production system. Dylan shared interesting insights into how these principles are applied in construction, emphasizing that even small improvements can lead to significant gains in efficiency and safety.

One fascinating example is Toyota's Andon Cord system, which empowers any worker to halt production if a defect is detected. This immediate response system encourages real-time problem-solving and defect resolution, which is crucial for maintaining quality and efficiency. Adopting such proactive measures can be beneficial across various sectors, including construction.

Adapting Lean Practices to Construction

Implementing lean practices in construction isn't without challenges. While the principles remain consistent, the execution can vary greatly due to the nature of construction projects, which are often more unpredictable than manufacturing processes. However, adopting a similar ethos—continuous improvement and respect for those doing the work—can have profound effects.

Dylan highlighted that facilitating open communication and empowering employees to suggest improvements can lead to a more efficient and safer work environment. Additionally, holding daily huddles to discuss safety, review previous day's work, and outline current tasks helps keep everyone aligned and aware of potential hazards and goals.

Key Takeaways from Large to Small Construction Firms

Dylan’s transition from a small, family-owned construction business to a large corporation like Flintco provided him with a unique perspective on what practices can be borrowed from each. He emphasized three key areas where small companies can benefit from the practices of larger ones:

Investment in People

Large companies like Flintco have clearly defined roles and career paths, which provide employees with a sense of direction and purpose. Small companies can adapt this by creating detailed job descriptions and potential growth trajectories. This not only helps in managing current resources better but also in retaining employees who see a future within the company.

Emphasis on Safety

Safety should never be compromised, irrespective of the size of the company. Dylan pointed out that while larger companies have more resources to invest in safety technologies and training, small companies can still prioritize safety through regular drills, proper equipment, and fostering a culture where safety is a shared responsibility.

Building Long-Term Relationships

Dylan discussed the importance of taking on projects that might not be immediately profitable but could build strong, long-term relationships. This is particularly crucial for newer market entries, where establishing a reputation can lead to more significant, lucrative projects in the future.

Simplifying Processes for Greater Efficiency

One of the enlightening segments of our conversation revolved around the bureaucracy that often plagues large organizations. Dylan pointed out that small businesses excel by necessity in maintaining lean operations without excessive red tape. Large companies can learn from this by evaluating their processes regularly and cutting down unnecessary bureaucratic layers to remain agile and responsive.

The Importance of Communication

Regular, transparent communication is another area where small businesses often excel. Regular check-ins and daily huddles ensure everyone is on the same page and can suggest immediate improvements. Larger firms can adopt these practices by ensuring there are consistent and concise communication channels at all levels.

Leveraging Simple Tools

Interestingly, sophisticated tools are not always necessary for effective management. Dylan shared an observation from our local experience with JE Dunn’s hospital project where despite having access to advanced scheduling software, the team still relied on physical Gantt charts and sticky notes. This tactile approach fostered engagement and ownership among team members, proving that sometimes the simplest tools can be the most effective.

Creating and Defining Roles

The clarity of roles and responsibilities is crucial for any organization. Dylan suggested a practical approach for small construction companies: start by listing out the tasks associated with each role, categorize them based on importance, and evaluate employees on a simple scale. This clear framework helps in setting expectations and providing a roadmap for progression within the company.

Career Ladders and Professional Growth

Small companies can enhance employee motivation and retention by creating career ladders. For example, a gutter company might have clear levels from Apprentice to Senior Installer, with defined skills and certifications required at each level. Such structures not only provide clarity but also encourage continuous learning and advancement.

Learning from Mistakes

In the spirit of continuous improvement, Dylan candidly shared his biggest professional screw-up—lack of honesty with himself regarding job fit and performance. This insight is valuable for everyone, emphasizing the need for self-awareness and open communication. Recognizing and addressing misalignments early can prevent long-term dissatisfaction and inefficiencies.

Embracing Responsibility

Another important lesson that emerged was the importance of taking ownership. Whether it’s recognizing a design flaw or an internal process issue, adopting an attitude of responsibility, as popularized by thought leaders like Jocko Willink, leads to proactive problem-solving and continuous improvement.

Conclusion

Our 50th episode was not just a celebration of how far "Beers with Contractors" has come but also a deep dive into practices that can elevate both small and large construction firms. From lean management principles and safety prioritization to effective communication and continuous improvement, there’s a wealth of knowledge to be shared and implemented.

As we look forward to the next 50 episodes, we remain committed to bringing you more insightful conversations, practical advice, and a sense of camaraderie within the construction community. Here’s to continuous improvement, safety, and the unparalleled satisfaction of building something extraordinary. Cheers!

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