MASTER ESTIMATING SERVICE
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Production Management Preface

All electrical contractors get work and do work. Most of those electrical contractors make very little profit from getting work and doing work. But a few electrical contractors consistently earn a reasonable profit in the business called electrical contracting.

The small number of contractors who make money consistently do three things that the ones who don't make money fail to do.

• They start jobs with a profit because their estimated direct job costs are accurate. Which is what "The Master Estimating System" is all about.
• They make actual costs meet or beat estimated costs because they have productive jobs. Which is what "The Master Production System" is all about.
• They know how actual costs for work done to date, compares to the anticipated costs in the estimate, for work done to date, before they have completed 5% of the contract. And they continue monitoring production throughout the project. Which is what "The Master Cost Monitoring System" is all about.

You will find some words in the Master Production System that you have seen many times before. Production Manager. Job Manager. Production team. Production. And you may not understand precisely what these words mean. Especially production.

According to the dictionary, production means "doing work efficiently". The word efficiently means "doing work right in the minimum amount of time". Production, then, is doing work right in the minimum amount of time.

In our case, production is doing electrical work right in the minimum amount of time. Doing electrical work right in the minimum amount of time, requires:

1. The right information, in the right place, at the right time.
2. The right material, in the right place, at the right time.
3. The right tools, in the right place, at the right time.
4. The right men, in the right place, at the right time.

When you combine these four essentials you get production. Combine even three of the four and you will not get production.

The production manager is paid to supply the four essentials of production. The job manager is paid to use the four essentials to get the work done right and on time.

The purpose of the Master Production System is to teach you how to develop and maintain productive jobs. Your goal is to meet or beat estimated costs, and thereby earn the estimated margin or more. Do this and you will be a man among men.

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Information contained in this website has been taken directly from our encyclopedia,
The Business of Electrical Contracting
Master Systems 1963-1990, 1990-2007, 2007-2024.