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System Model for Analyzing Design Productivity

Andrew S. Chang, P.E.1; and William Ibbs, M.ASCE2

Abstract: Many engineering design companies collect data such as person hours to manage projects. But the relationships between
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operational variables and performance are usually not thoroughly analyzed and interpreted. This paper proposes a system model and
procedure to relate influence variables to project productivity. The model was tested by analyzing 190 projects of an engineering
consulting company. The relationships between design productivity and various input and process variables were identified and inter-
preted. For example, project size has a negative relationship with productivity, while the effect of quality assurance/quality control on
productivity is not clear. Based on documented data and derived information, this model can help companies gain operational insight and
thus improve productivity and profitability.
DOI: 10.1061/共ASCE兲0742-597X共2006兲22:1共27兲
CE Database subject headings: Information management; Productivity; Performance characteristics; Engineering firms; Project
management.

Introduction pany will improve the company’s performance and profitability.


Knowledge can be generated by data mining tools 共Shaw et al.
Engineering companies usually collect data such as project dura- 2001兲. Data mining refers to the application of acquisition meth-
tion and person hours to manage design work, but then do not ods to the generation of potentially useful knowledge from the
analyze these data rigorously. Therefore, information is not de- organization and analysis of raw data 共Michalski et al. 1998兲.
rived to interpret cause-effect relationships, improve performance, The research described in this paper establishes a system
plan future work, and create knowledge. Such inadequate engi- model and procedure to guide the performance analysis and inter-
neering management is common and causes one-third of architec- pretation process. The model was tested on 190 projects of an
tural engineering 共A/E兲 projects to miss cost and schedule targets engineering consulting company to search for relationships and
共Barlow 1985; Anderson and Tucker 1994兲. knowledge among the input variables, process variables, and
Many studies propose frameworks to create or acquire knowl- productivity.
edge, but they usually do not provide details of how this can be
accomplished 共Rubenstein-Montano et al. 2001兲. Knowledge
management demands better information in terms of data needs, The Model
collection, analysis, and interpretation. When data needs and col-
lection are well planned, analysis and interpretation will generate The system model of input-process-output 共I-P-O兲 has often been
knowledge and better project management. For example, if used to manage organization operation and project performance
project duration is seen as related to performance, project dura- 共Simons 2000; A guide 2000兲. Our research develops a similar
tion and performance data are needed, collected, and analyzed to model, shown in Fig. 1, to analyze engineering project productiv-
interpret their relationship to verify tacit knowledge. ity. Because knowledge is potentially infinite, measuring organi-
For engineering companies, explicit knowledge is more tech- zational knowledge has to rely on general categories to capture
nical in nature and can be more easily expressed and transmitted the rich variety of knowledge 共Schulz and Jobe 2001兲. Therefore,
than tacit knowledge 共Nonaka and Takeuchi 1995兲. Tacit knowl- general categories and variables are established at the project
edge is difficult to articulate and mostly embedded in less- stages in Fig. 1. The work data 共I1兲 and work nature 共I2兲 and their
understood nontechnical issues such as project management variables are listed at the input stage; work division 共P1兲 and
methods 共Kuprenas 2003兲. Bloodgood and Salisbury 共2001兲 argue management 共P2兲 are listed at the process stage; and productivity
that making such tacit knowledge available throughout the com- and other performance measures 共O兲 are listed at the output stage.
Productivity is influenced by the input and process variables.
1 To identify the relationships between these variables and produc-
Associate Professor of Civil Engineering, National Cheng Kung
Univ., Tainan, Taiwan. E-mail: anschang@mail.ncku.edu.tw tivity, a company has to establish categories and collect data con-
2
Professor of Civil and Environmental Engineering, 213 McLaughlin cerning the selected variables. Two explicit categories are estab-
Hall, Univ. of California, Berkeley, CA 94720; and The Ibbs Consulting lished at the input and process stages, respectively. The work data
Group, Inc. 共corresponding author兲. E-mail: ibbs@ce.berkeley.edu category 共I1兲 includes variables that have been given at the begin-
Note. Discussion open until June 1, 2006. Separate discussions must
ning of a project, such as project type, duration, contract amount,
be submitted for individual papers. To extend the closing date by one
month, a written request must be filed with the ASCE Managing Editor.
etc. Work division 共P1兲 includes variables that can be deployed by
The manuscript for this paper was submitted for review and possible a company, such as budget and quality assurance/quality control
publication on November 19, 2004; approved on August 15, 2005. This 共QA/QC兲. These variables contain basic data for performance
paper is part of the Journal of Management in Engineering, Vol. 22, No. analysis and can be collected by companies. But few variables are
1, January 1, 2006. ©ASCE, ISSN 0742-597X/2006/1-27–34/$25.00. tracked in engineering design projects except those mostly of a

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J. Manage. Eng., 2006, 22(1): 27-34


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Fig. 1. System model

quantitative nature, such as duration and actual hours 共Eldin 3 and 4 will help management study and act appropriately.
1991兲. 5. Analyze I-P relationships. This analysis helps identify how a
There are also implicit variables that influence productivity. company deploys the work team or adopts management
They are qualitative in nature and cannot be easily recorded in a methods for a given work. The purpose is to examine a com-
database, such as I2 and P2, expressed in the shaded portions of pany’s decision-making relevance at the early stage of work.
Fig. 1. Work nature 共I2兲 includes variables such as task character- 6. Link I-P-O relationships. Synthesize the preceding relation-
istics, task interdependence, and possessed information. The five ships and examine the combined effect of various variables
variables listed in Fig. 1 are the sources of work uncertainty and to identify dominant productivity-contributing variables.
equivocality 共U&E兲 that describe work characteristics to a great 7. Propose the company’s productivity knowledge. Disseminate
extent 共Chang 2001兲. They are used as proxies to measure work this knowledge so that all managers in the company can
nature. utilize this information profitably.
The management category 共P2兲 includes coordination, stake-
holder needs, schedule effectiveness, etc. These process variables
have been proven to improve project performance 共Chang and
Case Study and Exploring I-P-O Relationships
Ibbs 1998; Kuprenas 2003兲. They are adopted here to remind
management of their importance.
The preceding model and procedure was tested to prove its valid-
ity. This research mainly analyzed quantitative data of an engi-
Implementation Procedure neering consulting company’s projects and interviewed relevant
project managers to supplement the quantitative analysis. One
A concept has to be implemented and tested in order to verify its hundred ninety projects completed between 1996 and 2001 in the
value; thus, a procedure was developed to test the proposed company’s database contained data of eight I1 and 11 P1 vari-
model. It involves two steps to prepare the data and five steps to ables, and parts of them are listed in Fig. 1. This company spe-
analyze and interpret it, which is similar to a data mining process cializes in planning, design, and construction supervision of tra-
共Feelders et al. 2000兲: ditional construction projects such as transportation, hydraulics,
1. Define data needs at the O, I, and P stages. Define produc- and area development.
tivity or other pertinent performance measures 共O兲 such as Productivity is defined as hours per drawing in this research.
profit. The measurable I1 variables usually include project This is a commonly adopted measure and easy to obtain, although
type, contract amount, the client, etc. Other variables can be some other measures may be needed if computer 3D models are
included, such as the design impacting variables 共Chalabi et replacing drawings. The hours/drawing numbers were collected at
al. 1986兲. Because the qualitative I2 variables are not usually the project level and by different disciplines. For example, engi-
readily available, a project nature questionnaire was designed neers of architecture, structure, and mechanical disciplines may
to collect them 共Chang and Chiu 2005兲. Similarly, the pro- charge hours if they work on a drawing. Hours and drawings of
cess variables P1 共and P2兲 are defined. individual disciplines were not analyzed separately, because the
2. Establish database and collect data. A sufficient amount of data retrieval would have been too cumbersome. The projects had
data must be collected and categorized according to the I, P, cost codes for engineers to charge on drawings, specifications,
and O stages. and other documents 共Chang and Tsai 2003兲.
3. Analyze I-O relationships. Extract data from the database If output performance is satisfactory, managers will not care
and start the first step of input-output analysis. The purpose much about input or process variables. But when productivity is
is to know whether productivity can be predicted upon re- not satisfactory, the managers need to explore I1 共and I2兲, as well
ceiving a project. as P1 共and P2兲 to relate the causing variables. The I-P-O relation-
4. Analyze P-O relationships. Determine which process vari- ship is linked through either I-O, or I-P and P-O. They are
ables affect productivity. The relationships identified in steps described individually in the following sections.

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J. Manage. Eng., 2006, 22(1): 27-34


Table 1. Project Type-Productivity Relationship 共I1-O兲 Table 3. Project Phase-Productivity Relationship 共I1-O兲
Project type Number Hours/drawing Rank Project phase Number Hours/drawing Rank
Rail transportation 34 46 1 Design 115 42 1
Highway 64 55 2 Planning 66 93 2
Air transportation 18 59 3 Construction supervision 9 94 3
Soft systems 5 61 4 Total 190 63
Environmental facilities 10 65 5
Area development 39 80 6
Hydraulic 20 83 7 hypothesis of the same productivity will be rejected. That is, the
Total 190 63 productivity differences among project phases are not attributed
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to chance.
However, this does not necessarily mean design work is more
productive than the other two phases. Rather, it is because design
I-O Relationships
projects’ main products are drawings, while planning and con-
I-O includes I1-O and I2-O. Fig. 1 shows that work data I1 and struction supervision projects focus on other deliverables such as
work nature I2 are the two categories of input variables. Produc- reports, which are less uniform and tangible. Further research can
tivity in terms of hours/drawing stands for output performance O. be pursued to find other productivity or performance measures for
The I1 variables analyzed hereafter are project type, phase, and planning and construction supervision projects.
duration. Project type and phase are qualitative information, while
duration is quantitative data. Project Duration 共I1兲-O
The project duration-hours/drawing relationship of the 190
Project Type 共I1兲-O projects is charted in Fig. 2. The solid line represents the statisti-
Project type is a variable that can be analyzed to see whether cal parabolic regression function. The coefficient of determination
certain project types are more productive than others. The project R2 = 0.0937 looks low. Prior to this parabolic regression, a linear
type and productivity relationship is shown in Table 1. Productiv- regression resulted in a smaller value R2 = 0.0521, in which the P
ity is ranked by average hours/drawing rates for individual project value= 0.0015 in the ANOVA.
types. It appears that transportation projects 共rail, highway, and Another way of grouping duration is by year. Table 5 displays
air兲 have better productivity, i.e., smaller hours/drawing values. In a more obvious trend. It shows that project productivity has a
contrast, area development and hydraulic projects are not as negative relationship with duration; that is, projects with shorter
productive. durations are more productive, especially those shorter than
To make sure these differences are not attributed to chance, an 2 years. This relationship is confirmed by ANOVA results as
analysis of variance 共ANOVA兲 using a = 0.05 was conducted. The shown in Table 6, in which F = 2.9 is larger than the critical value
results are shown in Table 2. Because F = 0.98 is less than the of 2.26.
critical value of 2.15 for 6 and 183 degrees of freedom 共DOF兲, the One explanation is that, for long lasting projects, people who
null hypothesis of the same productivity cannot be rejected. That are not released still charge their hours on the projects while the
is, the productivity differences among different types of projects number of drawings does not increase in proportion to the project
are not significant. duration. This should garner the company’s attention when
Transportation knowledge is the company’s core competence. managing longer duration contracts.
The general trend in Table 1 indicates that the productivity of The preceding three analysis examples are based on the single
transportation projects is ranked among the top, but this is not variable-productivity relationship. Since productivity is contrib-
concluded by ANOVA. This result deserves the company’s further uted by more than one variable, multiple regressions are more
investigation: are transportation projects really more productive? appropriate to see how the combined effect would explain more
Or is it because transportation projects produce more drawings of the variance. A linear multiple regression was conducted by
and the other types of projects produce fewer? When the reason is including the three variables, but 11 variables were generated
found, knowledge can be generated and transmitted to employees, in this equation: seven project types, three project phases, and
and the company can steer toward higher productivity for one duration. The R2 = 0.1967 increased and the P value was
transportation projects. 8.07E-6.
However, it will become too complicated if all variables are
Project Phase 共I1兲-O included in one regression, and the analysis would be formidable.
The project phase-hours/drawing relationship is shown in Table 3. There are eight input variables 共I1兲, and some of them are quali-
Design has the best productivity of 42 hours/drawing, almost half tative data that need to be split into more variables to be included
the rates for planning and construction supervision. The ANOVA in one multiple regression equation. Complication will further
results 共a = 0.05兲 are shown in Table 4. Because F = 12.0 is larger increase if the other 11 process variables 共P1兲 are included, with-
than the critical value of 3.04 for 2 and 187 DOF, the null out considering the implicit I2 and P2 variables yet. Furthermore,

Table 2. ANOVA of Project Type and Productivity


Sources SS DOF MS F P-value Critical value
Between groups 32,220.2276 6 5,370.037929 0.982505446 0.438471488 2.148409577
Within groups 1,000,215.26 183 5,465.657163
Total 1,032,435.49 189

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Table 4. ANOVA of Project Phase and Productivity
Sources SS DOF MS F P-value Critical value
Between groups 117,484.6663 2 58,742.33313 12.00590899 1.2431E − 05 3.044240461
Within groups 914,950.8221 187 4,892.785145
Total 1,032,435.488 189

different companies will collect their own variable data. It is Budget 共P1兲-O
very likely that the results from multiple regressions would be The relationship between budget and hours/drawing is shown in
irrelevant to other companies. Fig. 4. R2 = 0.1375 indicates a higher degree of correlation.
High R2 values are hard to get from single variable-
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Prior to this parabolic regression, a linear regression resulted


productivity relationships. For example, R2 = 0.0937 might be in a smaller value of R2 = 0.1323, in which the P value⫽2.50E-07
small. But a higher R2 value in a single variable relationship in the ANOVA. That is, using the budget to predict productivity is
normally will have a larger coefficient in a multiple regression. a meaningful method
Hence, relative productivity prediction by different variables can To further investigate, the budget is divided into seven ranges
still be obtained by comparing these R2 values from single vari- to evaluate the productivity in each range, as shown in Table 7.
able relationships, complemented by ANOVA significance. This More productive projects have smaller budgets, as is seen in the
alternative approach is also easier to understand and use. The first three project categories. One explanation is that smaller bud-
following analyses also adopt this approach. get projects have limited room for people to charge hours and
managers keep a closer eye on charges, while managers let engi-
Work Nature 共I2兲-O neers charge hours on larger projects with more room. This rela-
A questionnaire was developed from the five U&E sources to tionship is confirmed by the ANOVA results shown in Table 8.
quantify project work nature. For each U or E dimension, three Project duration, budget, or contract amount can be a surrogate
questions were designed, and each question had five possible an- for project size. The duration– and budget–productivity relation-
swers to represent the U&E degrees of 1–5. The mean score was ships have been identified previously. The contract amount is
27 关=3*共3 + 3 + 3 + 3 − 3兲兴 to distinguish high and low U&E for added to test its relationship with productivity. The linear regres-
each project. The fifth source is a minus item, because the task- sion shows an R2 = 0.1265 and a P value⫽4.76E-07; that is, the
possessed information reduces U&E 共Chang 2001兲. negative relationship between contract amount and productivity is
The correlation between work nature I2 variables and hours/ also significant. In addition to the human factor’s person-hour
drawing is low. Fig. 3 shows R2 = 0.0004 for the linear charge inadequacy, it can be inferred that, with increased project
uncertainty–productivity relationship. Similarly, R2 = 0.005 for size, the degree of difficulty and complexity increases, which in
equivocality but is not charted. These low R2 values mean that turn makes productivity worse. Some mechanisms are needed in
project nature does not affect project productivity. This implies the work process, especially from management, to prevent this
that work nature is not a key productivity factor for this company. danger. This is where project management 共PM兲 techniques can
A simple project may not be productive, while a complex one can play an important role 共Kerzner 2003兲.
be efficient. This means that some mechanisms in the work
process transform the work nature, and the variables in the QA/QC 共P1兲-O
mechanisms play a productivity change role. QA/QC are the management section and technical aspect, respec-
tively, of quality management 共A guide 2000兲. QA is the collec-
tive term for the formal activities and managerial processes that
P-O Relationships
attempt to ensure that products and services meet the required
Work division 共P1兲 and management 共P2兲 are the two categories quality level 共Kerzner 2003兲. For example, the project manager
in the process mechanism. Work division refers to how a com- needs to establish the administrative processes and procedures to
pany divides the work when it starts, including assigning project ensure customer satisfaction. QC is the activities and techniques
managers, allocating budgets, adopting QA/QC, etc. These vari- within the work process that are intended to create specific quality
ables are based on the company’s decisions and can influence characteristics. QC activities include continually monitoring pro-
productivity. The management category includes more implicit cesses, identifying problem causes, and use of statistical process
variables such as project 共process兲 management methods and control to reduce the variability and to increase the efficiency of
tools. These variables are formed by the ability and experience of processes.
a company and its managers. The relationships of budget and
QA/QC with productivity are analyzed subsequently.
Table 5. Project Duration-Productivity Relationship 共I1-O兲
Project duration
共years兲 Number Hours/drawing Rank
0⬃1 67 39 1
1⬃2 65 64 2
2⬃3 24 83 3
3⬃4 10 83 3
4⬃5 15 95 6
+5 9 92 5
Fig. 2. Project duration-productivity relationship 共I1-O兲 Total 190 63

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Table 6. ANOVA of Project Duration and Productivity
Sources SS DOF MS F P-value Critical value
Between groups 75,419.1 5 15,083.81996 2.90007873 0.015170297 2.263205799
Within groups 957,016.4 184 5,201.176025
Total 1,032,435 189

The QA/QC implementation-productivity relationship is mance. The simple comparisons in Table 11 did not intend to
shown in Table 9. The 190 projects are divided into two groups: prove the relationship between PM and productivity. Instead, they
77 projects with QA/QC implemented and 113 projects without are explained to remind managers of these influential but implicit
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QA/QC. Table 9 shows that projects implementing QA/QC pro- PM variables.


cedure are less productive. Because this difference is small 共64 Projects of certain types or phases 共I兲 and adopting PM prac-
and 62兲, it is further tested by a proportions inference. The num- tices 共P兲 are associated with higher productivity 共O兲. Cross analy-
bers of projects, productive and nonproductive as well as imple- sis can lead to deeper knowledge. For example, the productive
menting QA/QC or not, are shown in Table 10. The average pro- project C in Table 11 was an environmental facility project in
ductivity of 190 projects is 63, which is used to divide the Table 1 and a planning project in Table 3. Its productivity
productive and nonproductive projects. To test the significance of 共7 hours/drawing兲 is much better than the averages of the envi-
group difference, a confidence interval of 95% 共a = 0.05兲 is used ronmental facility and planning projects 共65 and 93 hours/
and Z共1−a兲 = 1.64. Because Z0 = 0.422, the hypothesis H0 that drawing, respectively兲. Further investigation is needed to deter-
QA/QC projects are more productive than non-QA/QC projects mine why this project is so special, or perhaps PM variables
cannot be rejected; that is, the presence of QA/QC requirements is influence productivity more than project type and project phase. A
not significant on a project’s productivity. company can collect PM data from productive projects to identify
Perhaps QA/QC implementation requires additional time from the dominant variables that appear most frequently.
quality engineers, which lowers planning and design productivity.
Although the construction phase of projects—and hence the over-
I-P Relationships
all project—can benefit from design QA/QC work, the company
should check whether QA/QC brings higher profits or higher cli- The I-O and P-O relationships may not be able to reliably indi-
ent satisfaction, which thus justifies the extra quality effort and cate whether certain I or P variables influence productivity. Per-
hours. The company’s quality process can also be validated to haps some transformation occurs between the input and process
ensure their quality knowledge. that changes the influence. For example, the effect of QA/QC on
productivity is not apparent, as discussed previously. It may de-
Project Management 共P2兲-O serve further study of the work nature or quality process. Hence,
Many studies have pointed out that project management 共PM兲 is a the I-P relationship is worth examining.
key factor to performance 共Anderson and Tucker 1994兲. Because I-P relationships include I1-P1, I1-P2, I2-P1, and I2-P2. Be-
this category did not have recorded data, this research interviewed cause many relationships exist, a company can explore them ac-
four project managers on PM issues. Eight PM processes were cording to their importance and priority. In the following analysis,
identified and proven to be associated with better performance P2 data could not be obtained, so only I1-P1 and I2-P1 are dis-
共Chang and Ibbs 1998兲. Six of them were adopted here to exam- cussed, including project duration-hours 共I1-P1兲 and project
ine their relationships with productivity: coordination, stakeholder nature-QA/QC 共I2-P1兲.
needs, teamwork, knowledge and experience, progress reports,
and cost report. Project Duration 共I1兲-Hours 共P1兲
The results shown in Table 11 indicate that projects C and D For the project duration and person-hours relationship, the
performed better in terms of smaller hours/drawing numbers. R2 = 0.2329 in Fig. 5 indicates that this relationship is more sig-
These projects implemented more PM practices such as frequent nificant than prior ones. A smaller value of R2 = 0.1972 was shown
coordination, good teamwork, and regular reporting. Emphasizing for a linear regression, in which the P value= 1.39E-10 in the
PM practice is an important and direct way to improve perfor- ANOVA. These results indicate that project duration in I1 would
increase person-hour consumption in P1. Individuals tend to

Fig. 3. Uncertainty–productivity relationship 共I2-O兲 Fig. 4. Budget-productivity relationship 共P1-O兲

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J. Manage. Eng., 2006, 22(1): 27-34


Table 7. Budget-Productivity Relationship 共P1-O兲 Table 9. QA/QC-Productivity Relationship 共P1-O兲
Budget QA/QC Number Hours/drawing
共$兲 Number Hours/drawing Rank
Yes 77 64
⬃16,700 20 34 1 No 113 62
16,700⬃ 33,300 21 48 3 Total 190
33,300⬃ 167,000 71 44 2
167,000⬃ 333,000 34 77 5
333,000⬃ 1,000,000 29 91 6 enough and QA/QC consumes person-hours without tangible
1,000,000⬃ 1,670,000 6 76 4 output, so the influence on productivity may be mixed. The com-
+1,670,000 9 151 7 pany can further solicit opinions from quality engineers and
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Total 190 experienced managers to explain this I-P-O relationship.

Conclusions
charge as much of their time as possible to billable projects
共Goldratt 1997兲. This inference is consistent with the prior long Engineering management needs to analyze cause-effect relation-
duration-low productivity relationship. ships more rigorously in order to get insight about project perfor-
The higher R2 value implies that I and P-O are linked. This mance. This research proposes a model to systematically analyze
linkage provides guidance in performance analysis and interpre- productivity causes in the project operation. Three categories:
tation. For example, a negative P1-O relationship, say, many work data 共I1兲 and work nature 共I2兲, work division 共P1兲 and man-
person-hours with low productivity, needs to be further analyzed agement 共P2兲, and performance 共O兲 are established at a project’s
and interpreted from the project duration variable in I1. input, process, and output stages, respectively. An implementation
procedure is also provided to guide performance analysis and
Work Nature 共I2兲-QA/QC 共P1兲 interpretation. Before using this model, a company has to define
To check the work nature-QA/QC 共I2-P1兲 relationship, the num- their own variables under these categories and collect sufficient
bers of QA/QC and non-QA/QC projects and their work nature in data.
terms of U&E scores are shown in Table 12. 共Only 101 of the The model was tested on a 190-project data set from an engi-
original 190 projects had available data for this U&E survey.兲 As neering design company. The variables of work data, work divi-
shown in Table 12, the 40 projects implementing QA/QC have sion, and management are found to influence design productivity.
lower U&E scores 共28 and 22, respectively兲 than the 61 non- For example:
QA/QC projects 共30 and 23, respectively兲. This means that the • Design has better productivity 共hours/drawing兲 than planning
QA/QC projects were regarded as less uncertain and ambiguous and construction supervision projects. The reason for this is
than the non-QA/QC projects. Further insights about the I-P-O probably that drawings are design’s main products, so its
relationships are described hereafter. drawing number is larger and its productivity value appears
lower.
• Project size has a negative relationship with productivity.
I-P-O Relationships
More productive projects have a shorter duration, smaller con-
When establishing the preceding I-O, P-O, and I-P relationships, tract amount, and smaller budget. The implications are: 共1兲
only one input or process variable with productivity is analyzed at people who are not released from long projects still charge
a time. To check the combined effect of various variables on their hours while the drawing number does not increase; 共2兲
productivity, the I-P-O relationships can be searched. This managers let engineers charge hours on larger projects; and 共3兲
additional analysis provides more insights about work operation mechanisms are needed in the work process, especially from
from input to output. One I-P-O linkage example is explained management, to prevent that negative relationship.
subsequently. • Project nature in terms of U&E would not affect productivity.
This implies that work nature is not a key performance factor;
Project Nature 共I2兲-QA/QC 共P1兲-O some mechanisms and variables in the process transform the
The I2-P1 relationship derived in the work nature-QA/QC section work nature and play a productivity change role.
helps explain the former P1-O relationship. Prior analysis from • The effect of QA/QC on productivity is not clear. Perhaps
Table 10 points out that projects with QA/QC requirements are QA/QC implementation clarifies work uncertainty and ambi-
not necessarily associated with better productivity. A possible in- guity, which saves time, but it also consumes time without
terpretation is that project U&E 共I2兲 is reduced through imple- tangible output, so its influence on productivity is mixed.
menting QA/QC 共P1兲, in which the quality procedures clarify The identified I-O, P-O, I-P, and I-P-O relationships provide
work U&E and this, in turn, saves time. But the effect is not large insights about work operation for the studied company. Other

Table 8. ANOVA of Budget and Productivity


Sources SS DOF MS F P-value Critical value
Between groups 148,974.7 6 24,829.10967 5.14309963 6.57077E − 05 2.148409577
Within groups 883,460.8 183 4,827.654811
Total 1,032,435 189

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J. Manage. Eng., 2006, 22(1): 27-34


Table 10. QA/QC-Productivity Relationship Test
QA/QC Productive Nonproductive Total H0 Result
Yes 55 22 77 More productive Z0 = 0.422
No 84 29 113 Less productive Accept H0
Total 139 51 190

Table 11. Process Management Variables-Productivity Relationship 共P2-O兲


Project A B C D
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Hours/drawing 33 32 7 25
Coordination No regular discussions No regular discussions Discussions with Discussions with
owner frequently owner frequently
Stakeholder needs Not much, no record Not much, no record No No
Teamwork Smaller project, Smaller project, Good chemistry Good chemistry
no teamwork no teamwork and common goals and common goals
among team members among team members
Knowledge and experience Fair Fair Good Good
Monthly progress report Only regular time sheets Only regular time sheets Yes Yes
Monthly cost report No No Yes Yes

when interpreting the cause-effect relationships. The result is that


companies will then be able to better and more profitably manage
their projects.

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