As project managers or construction leaders we are very familiar with the planning process. We have site designs, permits, cost analysis, and a multitude of other factors that help us determine the scope of our projects and our expectations for cost, pricing, and eventually profit. This planning process is not only a requirement, but absolutely necessary if we are expected to operate a viable, profitable business.

The problem is that we are often planning for the end result without taking the time to plan for value along the way. Value can take on many definitions; some not even related to one another. With lean thinking, value takes on a singular focus – those actions that add value to our processes that the customer is willing to pay for. There are three qualifiers to consider when determining if a plan, action, or decision adds value to your overall process or project:

1. The cost of your action adds to the end product or result. There are certain non-value-added activities we must do to conduct business. This is sometimes referred to as the “cost of doing business.” In other words, activities which are essential tasks that have to be done under present working conditions but don't add value to the product (sometimes referred to as required waste). The desire is to either minimize these activities or introduce process improvements that would eliminate them entirely, thereby ensuring that more of “what” we do actually results in desired revenue for our organization.
2. A value-added activity changes the product or service in some way toward the defined end result. There are many tasks completed in the planning phase that are key elements to the execution phase. There are likely several tasks that have simply evolved over time – “the way things have always been done” – that actually add more waste rather than value to the process. If we are not planning our activities through the value stream, we are bound to be wasting precious resources that impede us from reaching our goals more effectively and efficiently.
3. Finally, value-added activities are actions that are done right the first time. In the planning phase of our projects, this is crucial. How many times have workers had to leave a jobsite to retrieve tools, materials, or supplies that they should have had available? This is a defect in our planning. Planning is not a static event that occurs only at the beginning of a project. When accomplished effectively, it is ongoing throughout the project and enables us to eliminate rework or duplication of efforts.

When we plan for value, not just for completion of a project, we create a visible value stream. The value stream consists of specific activities required to design, order, and provide a specific product or service, from concept to launch, order to delivery, and raw materials into the hands of the paying customer. By planning for value at every stage in the value stream, we, as project managers or team leaders, have an increased ability to ensure more efficient allocation of resources, less waste in our processes, and greater end value to the customer. All of these value-added methods add up to the one thing every business needs – increased net profit.

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Police Warn of Grant Scam Targeting Small Businesses

A group from Las Vegas is running a phony grant-writing scheme in the Bellevue/Seattle area, and small businesses are targets.

The business name is Foundation Research Inc. and for a “non-refundable” deposit of $3,000, the firm promises to research sources and apply for federal grants for small-business owners. Once they receive the deposit, the corporation is shut down and the money disappears.

This group has used at least 10 other corporate names including: Small Business Funding Company, Small Business Funding Services, The Grant People, The Grant Place, The Corporate People and Grant Resources.

Recently, Foundation Research advertised a seminar at the Bellevue Marriott. Their “speaker” claimed to be a national radio personality “Jay Ellis – The Money Man.”

Bellevue Police detectives discovered that “Ellis” was actually Jonas E. Bowen, a convicted felon and professional con artist. Detectives contacted Bowen and, after a brief interview, he agreed to cancel the seminar.

Still, representatives of the group collected names of business owners who showed up for the canceled seminar, and the group will probably continue to attempt to solicit funds via phone and e-mail.

If you think you have been a victim of this type of scam, contact the Bellevue Police Department at 425-577-5656. Ask for the Fraud Unit.

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