Levels of the Value Stream

For contractors to unlock maximum value during business development, preconstruction and project execution it is critical to understand the broader value stream of the project beyond their scope.

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Consider these 10 levels of granularity when looking at the construction value stream:

Critical Skills: Value Stream Levels. Seeing, Understanding, Doing, and Leading.

 


SPECIALTY CONTRACTOR

  1. Specific Trade Scope & Task (Field Installation Expertise)
  2. Functional Area of Specialty Contractor (Precon, Detailing, Prefab, etc.)
  3. Whole Specialty Contracting Business (Electrical, Mechanical, etc.)

PROJECT OWNER

  1. Construction Process (GC / CM Viewpoint)
  2. Design & Project Delivery Process
  3. Project Lifecycle (From Concept Through Initial Construction, Operation, Renovations & Decommissioning) 
  4. Corporate Facility Management (Interrelationships of Business Strategy & Multiple Project Lifecycles)

BEYOND

  1. City Planning (Redevelopment Vision, Supporting Infrastructure, etc.)
  2. Industry Trends (Example - Demographics Driving Healthcare Capacity Needs)
  3. Country & Multi-Industry Integration (Example - Growing Geographies, Integration of Housing & Healthcare)

 


What level of the value stream is your primary focus?

Deeply learn the value streams and build relationships 1 & 2 levels higher.  

What can you do to add maximum value considering the perspective from those higher levels?  




Seeing the Mountain - Levels of Detail
You will find a clear path to the top of the mountain faster as you build your ability to situationally vary the resolution you see the world in. This applies to the construction of a project, the building of a contracting business and to life in general.
A Typical Project - Understanding the Basics of Cash Flow
Previously we looked at a typical construction project's profitability basics and covered a brief description of cash flow. Now let’s get into the basics of how that looks over the course of the project with a simple model of a 16 month project.
The Average Field Day in Detail (Craft Labor + Foreman)
Labor is often the biggest cost variable on a construction project. Just over half the field hours are related to actual installation. Understanding how time is spent on average in the field is the first step to improving field productivity.