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Construction Productivity: Productivity Measurement and Benchmarking
Construction Productivity: Productivity Measurement and Benchmarking
Productivity
Productivity Measurement and
Benchmarking
Productivity
Productivity
A company that most minimizes input and maximizes output has the
highest productivity
Project uniqueness
Technology
Management
Labour organization
Construction training
Folklore
True Relationship
Outmoded relationship
Quality
Quantity
Quantity
Quality
Other Benefits
Better competitive position
More jobs
Improved morale
Quality
Prices
Costs
Profits
Productivity
Improve Quality
Productivity
improves
Productivity Calculation
Inputs
Output
Work hours
Quantities
Equipment
Rupees
Materials
Energy
Capital
Models of Productivity
Economic Model
TFP = Total Value of Output / Total Value of Input
= Output (Rs) / Input (Rs)
Where TFP is the total factor productivity and
Input = Labour + Material + Equipment + Energy + Capital
Project Specific Model (Construction)
Productivity = Output (Activity unit) / Input (Rs) = Sq. mts / Rupees
Congestion
Sequencing
Lack of materials
A high variability in the unit productivity value is
an indication of poor productivity and a low
variability indicates good productivity
Productivity Benchmarking
Purpose of Benchmarking
a) Analyze the operations to
- Identify the critical cost components and areas for improvement
- Reduction in the cycle time of activities
Types of Benchmarking
Internal
- Comparison among similar operations within
ones own organization
Competitive
- This is comparison to the best of the direct
competitors
Functional
- Comparison of the methods with the companies
with similar processes in the same function
outside ones country
Types of Benchmarking
Generic
- Comparison of work processes to others who
have innovative, exemplar work processes
Cooperative
- Contacting the best in class firms and asking
them for knowledge sharing
Collaborative
- A group of firms sharing knowledge about a
particular activity
Benchmarking Roadmap
Determine what to
Benchmark
Determine Key Factors to
be measured
Develop Data Collection
Methodology
Collect Data
Identify Foremost Practices
Within and Outside Companies
Benchmarking Scope
Business Processes
Performance Measures
Performance Indicators
Labour
Productivity
Rework
Material Wastage
Equipment
Activities at
planned rate
Productivity (cum/manday)
2.97
0.85
0.79
0.99
0.49
India
Productivity cum/manday
Mean
1.22
Mhr/cum
1.00
1.50
3.69
1.24
1.29
1.26
1.88
2.32
2.69
cum/Mday
8.02
5.35
2.17
6.47
6.22
6.36
4.27
3.44
2.97
Productivity (Sqm/Manday)
1.42
1.90
2.19
1.65
1.10
India
Productivity Sqm/Manday
Mean
1.7
Mhr/Sqm
0.82
1.23
3.02
1.01
1.05
1.53
1.54
1.90
4.71
Sqm/Mday
9.79
6.53
2.65
7.90
7.59
7.77
5.21
4.20
1.70
Mhr/cum
2.35
3.53
8.70
2.92
3.03
2.96
4.42
5.48
6.35
cum/Mday
3.40
2.27
0.92
2.74
2.64
2.7
1.81
1.46
1.26
90.5 (Mean)
Conclusions
Thank You