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Unformatted text preview: he labor to
install the material has a similar
sequence of events. When work is not
done according to standard, the originally installed work has to be removed and then all of the installation steps
repeated. Originally, there was one set
of steps—when rework occurs the
work is multiplied by three!
The cost of rework can very easily be
three times the original budget. For
example, a $20 million a year contractor who spends $5 million on direct
labor and has a 2.5 percent incidence Construction
six lives and are
nearly 520 disabling injuries
of rework would be losing approximately $375,000 annually ($125,000
x .05 percent x 3 times) in labor alone.
If the opportunity cost of having workers ignore the work they should be
working on while they were removing
work and then reinstalling it, the cost
could be five times the original
Rework can also cause collateral delays
and disruption to surrounding work.
Although the amount of rework is not
the only measure of quality, it is a key
indicator of how much attention is
being paid to the concept of quality....
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- Spring '13
- Human Resource Management