Levels of Integration and Optimization

Contracting is a relatively low-margin, capital-intensive, high-risk and difficult-to-scale business with many seeing contractors as a commodity.

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Operational excellence must be a major component of every contractor’s strategy and baked into their daily behaviors.  

Leadership Tools: Levels of Integration and Optimization. Purchasing Example.

There are four major layers of integration and optimization.  Each are related. Each layer is critical creating the foundation for other layers.  Optimization at each layer requires different levels of thinking, different technology and a longer time span.  

  1. Task: Can be further broken down into discrete steps with every element of time and motion broken down to yield the most efficient output.  
  2. Function: Optimization is about consistent and efficient execution by everyone within a functional areas such as field, project management, purchasing, etc.
  3. Company: Most effective flow through across all functional areas of the company.  For example - the most efficient material installation is that material that never had to be ordered or installed because it was value-engineered out during the design process.  
  4. Supply Chain: Downstream integration to your suppliers and subcontractors.  Integration with other contractors on the project if applicable, upstream to your customer and efficient communication with architects and consulting engineers. 



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