The damage comes when saying “yes” to the client will disrupt your previous commitments. Ask yourself will the dollar compensation allow for the required overtime costs? Will you, as the sales person, receive the agreement (from production) to be able to meet the schedule that has been requested by the client?

It is important to understand that your honesty and integrity will not interfere with future work with this client. Let your client know immediately if you can or cannot help them out. If your schedule will not allow a fast track project (no matter the size) because you are too busy, that is okay (actually that is great, given the present economy). Explain the schedule conflict to your client in order to continue bidding with them for future projects. They will appreciate the immediate and honest answer much more than being late on a project because you said yes without thinking.

“Poor planning on your clients part does not does constitute an emergency on your part”

- Author Unknown

You will at times, however, find yourself jumping through hoops to make things happen on behalf of your regular client. Do not, however, keep a client hanging on for a decision. Get the answer “yes we can” or “no we cannot” immediately back to them, so they can go to their Plan “B” and honor their commitments.

A few things you should consider when requested to do a fast track project…

Verify with your production team that both the engineering department and production itself can accept additional work at this time, based on the present workload. That is a judgment call for the Production Manager. If the go ahead is given by production to proceed with the bidding process, your company has made a commitment, and if awarded the project you must precede in a timely manner.

As far as the office functions, a “Fast Track” project is no different from any other. Enter the job into your system and immediately set up the job book. Let the staff know that this particular job is a fast track project. The salesman should make sure the job is immediately placed on the schedule. He should make every effort to turn over the plans and information quickly to project management.

This project will take some precedence over one or more of your present projects. The turnover should be scheduled with production and the project manager. This places the work in front of the key players so they will be prepared rather than blind-sided at the last minute.

The initial task must be requesting information for any special conditions, equipment, finishes and secondly receiving approvals to order the materials. RFI’s must be sent out, acknowledged, answered and approved ASAP. Early approval for ordering materials is typically a must. When necessary, get the materials approved even if the details are lacking or still being worked on. You should be prepared to go to the saw and start cutting when the approvals and plans are returned. Fast track projects require thinking ahead and moving the materials before the plans themselves may have been approved.

The project manager must make the phone call to the superintendent to ask the following question “when can I measure” or,“ when can I measure the majority of the project?” You can ask for it, but not many superintendents will commit to “guaranteed dimensions” these days. It is a fact that time is saved in drafting when drawing with actual measurements.

The project manager must control the client by phone and in writing. Tell the Client, G.C. or the project manager what is required of them for the turn-around of the approved shop drawings. They are just as responsible to the success of the project as you are.

Everyone needs to be in the loop earlier rather than later when working on a fast track project. The draftsman can begin preparing the shop drawings as areas are approved, measured and the colors are known. While it’s not the best situation to be in, having the work started before the last piece of information is received will help you get ahead of the curve. Note that this is not ideal, but rather the nature of FAST TRACK PROJECTS!

Take a minute to think about your sub-contractor(s) – it may be your wood finisher or a lighting guy for instance – chances are you talked to them for pricing and the fast track nature was discussed at bid time. Immediately after you receive notice to start, communicate the schedule with your subs. They will want to know if they have the job. More importantly, you need to know nothing has changed on their end with their schedule. Get the dates, and issue a purchase order.

A common question; “What if they all of a sudden are too busy and cannot meet my schedule?” This is a good problem for them but potentially a REAL problem for you?

Answer: GO TO PLAN “B”. You should never have just one source for any product or service

The art of the fast track is easy if you begin the work on day one. The most immediate and important start of the task is communication between the client and your departments. Experience gives me a simple equation to live by: for every one day of delay by the client for information or by you in-house, there will be a minimum of three days lost on the schedule. This formula has unfortunately been proven by far too many professionals, far many too many times.

Remember if you cannot do a given task yourself, then ask for help. It is really that simple… do not make a fast track project any more difficult than it needs to be. Most importantly, remember that your typical process for the plans, production review, and fabrication through quality control should be maintained. There are no short cuts.

If you do not stop to get yourself organized because you are too busy working, you will stand still indefinitely. If you think your work week will not allow you more time, you need to be creative, find more time.  You must understand the need “not to work harder but to work smarter.” Your company may need a few areas reviewed and worked on, find time. The people that work around you will be motivated when given a clear picture of the needs and new directions you may be planning. Give everyone around you opportunity to succeed and they will help you work on new ideas. Create a road map and an atmosphere whereby individuals realize they work, where they can excel, for both themselves and the company.

Throughout your business from administration to manufacturing and installation, a set of pay scales should be determined. Base these scales on current standards within your local areas “value range.” The pay scales for sales should also be reviewed. This is the one area that may require a base plus compensation, in order to attract quality people. An escalating percentage as an individual’s gross sales grow is a great motivator.  Of course pay scale decisions must be based on type of sales and value of sales to the company. Most notably security and stability with the opportunity to work hard and see future rewards should exist for yourself and those around you.

When you define “middle management” you should design for specific tasks with set and defined responsibilities. These responsibilities should correlate with reasonable compensation. Allow others to understand these responsibilities, giving them the opportunity to grow with the company, in the future. A good goal of management is to bring people up from within, which in turn will lessen the learning curve. Employees need to be both told and shown that opportunities exist within the company.

As owners and upper management you define the needs of the company. As you continue to evaluate the market and your own expectations, focus on realistic guidelines. The question you should ask yourself is where are the next opportunities? Designing your Marketing and Sales program for the future will always be a work in progress, ever changing as the market changes. Consider the next generation or next incarnation of the company, when making decisions for the future. Overall direction of the company should be by design and not by accident.

If your main objective is for the good of the employees and the company, then your success will expand exponentially…

Estimating is knowledge and philosophy living side by side. I want you to read through “Estimating / Art or Science.” I have included it here for a reference to my estimating philosophy. Once you have a good understanding of estimating, you can get into the salesman’s mind set. Once you understand and have the knowledge of what goes into an estimate, you will be a much more successful project manager.

Estimating, Art or Science?

Think of estimating as an art with a formula based on actuality + history + experience. Actuality = what does a part really cost us? History = what have we learned from the past? Experience = what is our best educated and engineered guess?

Science takes an unproven theory and acts on it in hopes of creating precision. Science can prove to be accurate or once proved, misleading, should then be disbanded. There are very few estimates that will turn out to be exact and precise, to the “t” as we say. Therefore it is important in any estimate to make as few errors as possible.

The greatest risk to an estimate is overlooking a key element that is both necessary and significant to the cost. You must also understand no estimating system is stand alone, irrespective of how sophisticated the system or program appears on the surface. No estimating system can eliminate risk. However, a system based upon standard data, history that has been studied, while throwing in a little experience and engineering, will minimize risk.

Accuracy should be built in several ways. First, elemental data must be reduced to the smallest possible increment. By doing so if an error, oversight or basic transposition were to happen, the effects would be minimal and should have no great cost effect on the whole of the project. Secondly, upon completion of every individual project, you must go through a complete cost analysis. You should review the methods used and any difficulties that have been encountered along the way. The last project, aids you on future projects. Lastly, learn to quit looking up for “pie in the sky” on future projects. Look down on the ground, where you will find the nickels and dimes that were left behind.

Any estimating system must understand an orderly sequence of normal handling, production and finishing operations. The system should not encourage a random selection of values based on undefined standards or the illogical order of the operations required. First things should be considered first, second steps second and so on. An estimate spread sheet or complete system built on study and logic combined will reduce the risk of forgetting any single operation. The goal is to increase the bottom line of future projects by what you have learned from the past. By studying the past projects, your risk becomes greatly reduced in the future.

An effective estimator should also be a millwork engineer, who has an understanding of project management. The estimator must have a mental picture of the entire project. His knowledge of the production and installation process will give a clear composite as to the final product, for the estimate. Once that mental picture is complete, an estimator can progress along the standard data chart selecting values. He then acknowledges the unusual factors that will be required through the production and installation processes. Upon final review if need be, talking with the builders and/or installers, the estimate can be completed. Clear pictures that create solid estimates will be realized in bottom line profits.

Finally as an estimator, you must never lose sight of the objectives and responsibilities of your position. These objectives and responsibilities can be described in two sentences. First, you are responsible to the client for creating a cost effective project budget that will be completed on time. Second, and far more basic, is to budget a project that will make a profit for the company.

Knowing your numbers is everything.

ASK YOURSELF THESE QUESTIONS – “THE 9-POINT LIST”

1. When was the last time material pricing was checked?
2. Were quotes received on every job for the “buy-outs?
3. Have labor costs gone up for any number of reasons, union contracts, etc?
4. Can the work flow be improved?
5. Have maintenance costs and fuel expenses been reviewed lately?
6. How large is the staff and most importantly is everyone working effectively?
7. Does the staff meet on a regular basis and make adjustments when and where needed?
8. When was the last time a number on the spread sheet was changed?
9. Do you review every project when completed?

All of these factors will make or break a spread sheet. Sales must know their numbers for any by hand or sophisticated estimating program in order to be effective. It should reflect both company strengths and especially company weaknesses within the sales, management and manufacturing processes.