An Analysis of Multiskilled Labor Strategies in Construction

Publication No

RS137-1

Type

Research & Development Product

Publication Date

Apr 01, 1998

Pages

Research Team

RT-137

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Abstract

Key Findings

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Abstract

Labor productivity, craft training, and the declining number of entrants into construction crafts present critical challenges for our industry today. One solution which may positively effect many labor issues is to better utilize the skilled workers currently in the industry through the development and use of multiskilling. A review of studies over a 10-year period from the manufacturing area indicates that multiskilling strategies resulted in process improvements and technological innovation.

The scope of this study included a detailed project analysis of a single domestic, grass roots, open shop industrial construction project and the exploration of currently used multiskilling applications in construction. Benefits of multiskilled labor utilization were demonstrated with regard to total project labor cost, employment opportunities for construction craft workers, and other industry labor issues. These benefits included conservative estimates of five percent total labor cost savings, a 35 percent reduction in required project work force, a 47 percent increase in average employment duration of each worker, and an increase in wage/annual earning potential for multiskilled construction workers.

A system for estimating the potential project benefits of alternative labor utilization strategies was developed. All labor cost factors in the cost model were identified and developed by the industry research team. The cost model is used in conjunction with labor data from the project schedule to quantify the potential cost savings from a multiskilled labor strategy.

Key Findings

Theoretical Labor Strategies – Table 5 below summarizes the total required work force to complete the CII Model Plant for the four multiskilling strategies presented by this research. This analysis reveals important trends, such as, the total required work force was reduced by 18% for Dualskill and by 35% using the Four Crafts-B strategy.
(RS137-1, p. 12)

Of the strategies evaluated in this study, the “Dualskill” strategy demonstrated the smallest labor cost savings. This strategy provided a labor savings of $260,187, approximately a three-percent reduction in total labor cost. The most successful multiskilling strategy tested was the Four Crafts-B approach, which provided labor savings of $432,035, approximately a five-percent reduction in total labor cost. When compared against the Theoretical Maximum strategy, the Four Crafts-B approach captured about 75 percent of the maximum potential savings. (RS137-1, p. 14)

The most commonly reported worker benefits were increased employment duration, improved marketability, and increased sense of security/satisfaction. The most commonly reported project benefits were increased flexibility in worker assignment, lower turnover, smoother work flow with less dead times between tasks, fewer workers needed to complete the project, and lower costs to the owner. (RS137-1, p. 19)

Each problem included was independently identified by more than 67 percent of the users (of multiskilling stragegies). First, users felt that complex tasks did not lend themselves to multiskilling. Secondly, recruiting multiskilled workers and accessing adequate information regarding the skills of each worker are problems. Third, users saw that deterioration of infrequently used skills was inevitable. (RS137-1, p. 17)

The flow chart summarizes the general concepts and sequences associated with successful strategic changes. This general model is proposed as a starting point for future research to develop implementation guidelines for multiskilling users in construction. (RS137-1, p. 21, Figure 3)

Filters & Tags

Knowledge Area

Construction Execution, Human Resource Management, Procurement & Contracts

Project Phase

Construction

Project Function

Procurement & Contracts, Construction

Industry Group

Light Industrial, Heavy Industrial, Buildings, Infrastructure

Research Topic

Multi-Skilled Craft Capabilities

Keywords