Productivity, Quality and saftey

The labor to install the material has a similar

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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 accidents claim six lives and are responsible for nearly 520 disabling injuries every workday. 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 amount. 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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