building under construction with workers

Case Studies: Performance Improvement in the Construction Industry

March 14, 2022

Case Studies: Performance Improvement in the Construction Industry

Synopsis
4 Minute Read

MNP builds customized solutions to help clients in the construction sector drive success and profitability, no matter their size or reach in the market.

Challenges Challenges we solve:

  • Growing variances in project cost
  • Increasing dependency on subcontractors
  • Scheduling inefficiencies and lost time
  • Lack of effective project management
  • Back-office inefficiencies
  • Low profit margins
  • Challenges with cash flow and collections
  • Poor measurement of key performance indicators

case studies Client case studies:

Enhancing labour utilization and financial visibility

Large-scale construction company 

The challenge

A specialized company in acoustic ceilings, metal stud wall construction and drywall was looking get more visibility over projects and to optimize labour productivity in their cost constrained business. 

The solution

We introduced productivity benchmarking and active management while finding new ways to optimize storage, prevent oversupply, minimize scrap and sequence operations. Most importantly, we helped design systems to effectively plan, schedule, monitor and control operations on a daily, weekly and monthly basis. 

The outcome

We improved labour drift by 10.6 percent, saving $997,000 during the engagement. Overall EBITDA improved by nearly $1.5 million.

Growth and operational scalability

Mid-sized residential and commercial restoration services company

The challenge

Started amongst friends, the company was looking for a more sophisticated operational infrastructure to manage and grow their stagnant business. 

The solution

MNP created a comprehensive management operating system to increase visibility over the financial performance of individual projects. The team built a customized tool for assessing workforce performance to determine opportunities for training that would lead to enhanced profitability. 

The solution

MNP implemented the process, systems and behaviours necessary to provide transparency over daily operations, enhancing long-term growth and development of the firm.

Business optimization through improved infrastructure

Small, niche paving company

The challenge

Labour shortages limited growth and revenue generation, putting significant pressure on the owners to improve productivity with stagnant staffing levels. 

The solution

MNP conducted an operational deep-dive, analyzing worker productivity across key positions and identifying major causes of lost time. 

The outcome

MNP developed a process to optimize operations in order to maximize efficiency and profitability, reducing operating costs by at least $150,000. The team created a system to plan, control and report on performance using simple Microsoft 365 business applications.

"" Current industry trends we’re advising on:

Rising material and labour costs, labour woes and increased competition have plagued the industry for years, resulting in declining profit margins for many private enterprises. We build customized solutions to help customers drive success and profitability, no matter their size or reach in the market.

Contact us

To learn more about how MNP can help your organization, contact Yohaan Thommy, PMP, LSSBB, CMC, Partner.

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