004 benchmarking and productivity

BENCHMARKINBENCHMARKING AND G AND PRODUCTIVITYPRODUCTIVITY

[email protected]://www.construction-productivity.co.uk

mailto:[email protected]

BENCHMARKING AND PRODUCTIVITY

BENCHMARKING AND PRODUCTIVITYThe idea of Benchmarking process: to compare the activity of one company with activities of the best of other companies.

Within the UK industry Benchmarking Benchmarking has been identified as:has been identified as:

a powerful tool for assisting managers a powerful tool for assisting managers to improve efficiency within the to improve efficiency within the industry. industry.


Organisation specific benchmarks are developed during:

the benchmarking process; the analysis phase. Benchmarking has proved to be a flexible Benchmarking has proved to be a flexible

tool used to support other strategies. tool used to support other strategies. It looks at the organisation’s strength and

weaknesses to compare with other organisations.

It change strategies at the right time to become more competitive in global market.


IMPROVING BUSINESS RESULT THROUGH

BENCHMARKINGThe term benchmarking includes a The term benchmarking includes a

number of different activities built number of different activities built around a single, simple and powerful around a single, simple and powerful idea. idea.

benchmarking is a continuing process;opens the organisation to new and radical ideas;

It can play a pivotal role in improving effectiveness.


A major project management benchmarking company in the United States and in Europe concluded that at least 10 billion ponds was wasted due to items such as:

BENCHMARKING AND PRODUCTIVITYCompetitive benchmarking is the benchmarking applied to one’s performance against competitors;

measures of project excellence and effectiveness.


Manufacturing sectors have been relatively quick to respond to changes within the business environment.

An example of this is the relatively rapid and flexible response to the global economy.


Companies needs to develop a culture of ‘lean construction’ through continuous improvement.

The objective of this approach is to increase the performance, and at the same time reduce costs.

BENCHMARKING AND PRODUCTIVITYSteps to take in Benchmarking

can beDescribed as: Consider Activities with low Key

Performance Indicators( KPIs); Consider a process model first; Consider what to benchmark from the

process model first, second, and so on;

Define the measures; Develop data collection methodology; Collect data;

BENCHMARKING AND PRODUCTIVITY Identify deficiencies in the use of

best practices and project management performance.

Identify reasons for deficiencies (root causes).

Develop an action plan (select best practices to reduce shortfall).

Integrate best practices into the project delivery process.

Adopt benchmarking as part of a continuous improvement program.

Monitor progress

BENCHMARKING AND PRODUCTIVITYMonitor factors such as: cost time waste safety client satisfaction and also many other critical issues.


Productivity

Benchmarking(quantities)Competitiveness

BenchmarkingClub

National ContractorsFederation

(median size firms)Contractors Group

(large firms)

Establish trends of performanceStrengthweakness

Best of other companiesUK&

OverseasStrength

Weakness

Increaseperformance Reduce cost

In 2007, the UK hadover 250,000

companies active inthe industry,

representing 6.64per cent of UK GDP.


QuantitativeQualitative

One-on-oneDomestic

External

Benchmarking

InternalGlobal

(Competitivebenchmarking)


GlobalDomesticInternalExternal

One-on-one(data based)

Internal&External

Select activities with poorKPIs20-3050-60

90-110etc.

One-on-one(data based)

BenchmarkingKPIs

Processmodel

Step 1-pull information from bill of quantity

Pr od uct ivity m easur em ent ta ble - re lated to ca se no. 1

CRAF T/ LABOUR

PRODU CT IVI TY

CASE NO.1 PO OR

To ta l MD =Co st of ma ter ial

Was te Wast e Cr aft Op tve

Cra ft Op tve

La bou r Lab our

Pro du ctivity Los s o r Ga in £

T ota l lo ss/Gain =PR x TQ

Unit

3x3 Bed Hou se -2 Sto ry level

Qua ntity (T Q)

Delive red to site

(Esti mate)

(Actu al)

Hr s Hrs Hrs Hrs - PR=M D[A -X]+H C(EC-AC) +H L(E L-AL)

LOSS £

Descr iption -Ac tivitie s

(Act- ) % % (E C) (AC) (E L) (AL)

SUPER ST RUCTURE

Fa cing Brick P. C £3 50 PER 100 0 / Com mo n Blo ck

1 56 31 .14 5% 6. 50% 2.5 5 2.5 8 1 .95 1.9 7 -0.9 -140 M2

Com mo n Br ick/Block

2 64 18 .88 5% 6. 50% 2.2 5 2.2 6 1 .75 1.7 6 -0.47 -124 M2

Inte rn al Wa lls -LWC Blo ck

2 82 8 5% 7. 00% 1.4 5 1.4 7 1.1 1.1 2 -0.38 -107 M2

Inte rn al Wa lls -Pla ste ring -13m m thic k

7 08 1.71 5% 6. 50% 0.4 5 0.4 5 0 .23 0.2 3 -0.03 -24 M2

Inte rn al Finish -Ceiling finish -set

5 04 0.47 5% 6. 50% 0.2 5 0.2 5 0 .13 0.1 3 0. 47x ( -0.0 2) 4 M2

Wall T iling -152 x15 2

75 14. 5 5% 6. 50% 1 1 0.6 0.6 1. 71x ( -0.0 2) 22 M2

carry outcalculations-useformulas (ACTUAL)

Informationfrom bill of quantity(ESTIMATION)

Net Rate

Gros s Tota l Tota l Tota l Tota l Total Time

Tota l Tim e

Tota l Cost

Tot al Cost

Tota l Tim e

Tota l Time

Total Cos t

Tota l Cost

Unit

(£) Rate Quant -

Q uant-

Cost Cos t Es t- Est - Est - Est - Act. - Ac t.- Ac t- Act -

(Est -) (Ac t-) (Est -) (Ac t- ) Craft Labour

Craft Labour Craft Labour Craft Labour

(£) (£) (£) (Hrs ) (Hrs) (Hrs ) (Hrs ) (Hrs ) (Hr s) (Hrs ) (Hrs) 64.5

5 72.94 160 - 1167

0 - 464 688 3257.3 3969.7

5 - - - - M2

57.29

64.73 130 - 8414.9

- 63.75 315.9 447.15 1822.75

- - - - M2

40.81

46.12 225 - 10377

- 506.25

393.75

3553.9 2271.95

- - - - M2

35.24

39.82 410 16326

- 922.5 451 6475.95

2602.25

- - - - M2

13.91

15.98 440 - 7031.2

- 638 484 4478.75

2792.7 - - - - M2

5. 04 5.69 1125 - 6401.3

506.25

258.75

3553.9 1492.95

- - - - M2

3. 99 4.5 785 - 3532.5

196.25

102 1377.7 588.55 - - - - M2

26.88

30.37 90 - 2733.3

- 90 54 631.8 311.6 - - - - M2

Net Rate

Gros s Tota l Tota l Tota l Tota l Total Time

Tota l Tim e

Tota l Cost

Tot al Cost

Tota l Tim e

Tota l Time

Total Cos t

Tota l Cost

Unit

(£) Rate Qu anti ty

Q uanti ty

Cost Cos t (Es t-) (Est -) (Est -) (Es t-) (Act.-)

(Ac t.-) (Ac t-) (Act -)

(Est -) (Ac t-) (Est -) (Ac t- ) Craft Labour


(£) (£) (£) (Hrs ) (Hrs) (Hrs ) (Hrs ) (Hrs ) (Hr s) (Hrs ) (Hrs)

64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2

1 3 82 1 1 15

1 2

0

0

1 4

14

40

40

4

5 5

43

43

47

47

55

5 5

61

61DU =1 4 DU = DU = DU= DU= 54

44

58

9

44

47

7

5 5

5 9

1 4

45

45

6

55

55

13

70

7 0

17

4 3

4 6

5

45

59

1 0

5 9

6 6

1 6

2 6

DU =4

DU =1

DU =1

3

DU =2

DU =1

DU =1

DU =1 8

DU =1

DU =4

DU =3

DU= 2

DU =2

Network Programming(AOA)-ESTIMATION

GanttChart-ACTUAL

GanttChart-ESTIMATION

1 3 82 1 1 1 5

12

0

0

1 4

1 4

4 0

4 0

4

55

43

4 3

47

4 7

5 5

5 5

6 1

6 1DU =14 DU = DU= DU = DU =54

44

58

9

4 4

4 7

7

55

5 9

14

4 5

4 5

6

55

55

13

7 0

7 0

1 7

43

46

5

4 5

59

10

5 9

66

16

26

DU=4

DU =1

DU= 1

3

DU=2

DU =1

DU= 1

DU= 1 8

DU =1

DU=4

DU =3

DU =2

DU= 2

Network Programming(AOA)-ACTUAL

LABOURYESNOMATERIALS(wastage)

YESNO

MACHINERYYESNO

COST OVERRUN(YES)

COSTOVERRUN(NO)

COST OVERRUN(NO)

YES A

A

Carry outcalculationsuse formula(ACTUAL)

P ro duc ti vit y m ea sur em e nt t ab le -r el ate d t o case n o. 1

C RA FT / LAB O U R

P RO D U CT IV I TY

C AS E N O .1 P OO R

To ta l M D =C os t of m at er ia l

Was te Wast e C ra ft O pt ve

Cr a ft O pt ve

Lab ou r Lab our

Pr od uct iv it y Lo ss o r G ain £

T ot al lo ss/ Gai n =P R x TQ

U ni t

3x3 B ed Hou se -2 S to ry l eve l

Q uan tity ( TQ )

D el ivered t o si te

( Est i m ate )

(A ct ua l)

H rs Hr s H rs Hr s - P R= M D[ A -X ]+ H C( EC- AC) +H

L( E

L -A

L)

LO SS £

D escr i pt io n-A cti vi ti es

( Ac t -) % % (E C) (A C) ( E L) (A L)

S UP ER S TR U CTU R E

Fa cin g Br i ck P .C £ 35 0 PE R 100 0 / Co mm o n B lock

156 31. 14 5% 6. 50 % 2. 55 2.5 8 1. 95 1. 97 -0. 9 -140 M 2

C om m on B ri ck/ B loc k

264 18. 88 5% 6. 50 % 2. 25 2.2 6 1. 75 1. 76 -0. 47 -124 M 2

In te r nal Wal ls -LW C B lo ck

282 8 5% 7. 00 % 1. 45 1.4 7 1. 1 1. 12 -0. 38 -107 M2

In te r nal Wal ls -P last e ri ng -13m m t hi ck

708 1. 71 5% 6. 50 % 0. 45 0.4 5 0. 23 0. 23 -0. 03 - 24 M 2

In te r nal Fi nish -C ei lin g f ini sh -set

504 0. 47 5% 6. 50 % 0. 25 0.2 5 0. 13 0. 13 0. 47 x ( -0. 02) 4 M 2

Wa ll T il in g-152 x15 2

75 14. 5 5% 6. 50 % 1 1 0. 6 0. 6 1. 71 x ( -0. 02) 22 M 2

SITE ENGINEERS

MANAGEMENT

CHIEF EXECUTIVE

LOWPRODUCTIVITYCOST OVERRUN

HIGHPRODUCTIVITY

Net Rate

Gross Total Total Total Total Total Time

Total Time

Total Cost

Total Cost

Total Time

Total Time

Total Cost

Total Cost

Unit

(£) Rate Quant-

Quant-

Cost Cost Est- Est- Est- Est- Act.- Act.- Act- Act-

(Est-) (Act-) (Est-) (Act-) Craft Labour


(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) 64.5

5 72.94 160 - 1167

0 - 464 688 3257.3 3969.7

5 - - - - M2

57.29

64.73 130 - 8414.9

- 63.75 315.9 447.15 1822.75

- - - - M2

40.81

46.12 225 - 10377

- 506.25

393.75

3553.9 2271.95

- - - - M2

35.24

39.82 410 16326

- 922.5 451 6475.95

2602.25

- - - - M2

13.91

15.98 440 - 7031.2

- 638 484 4478.75

2792.7 - - - - M2

5.04 5.69 1125 - 6401.3

506.25

258.75

3553.9 1492.95

- - - - M2

3.99 4.5 785 - 3532.5

196.25

102 1377.7 588.55 - - - - M2

26.88

30.37 90 - 2733.3

- 90 54 631.8 311.6 - - - - M2

Net Rate


Total Time

Total Cost

Total Cost

Total Time

Total Time

Total Cost

Total Cost

Unit

(£) Rate Quantity

Quantity

Cost Cost (Est-) (Est-) (Est-) (Est-) (Act.-)

(Act.-) (Act-) (Act-)



(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)

64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2


Step 2-carry out calculations-use

Productivity measurement table-related to case no.1

CRAFT/LABOUR

PRODUCTIVITY

CASE NO.1 POOR

Total MD =Cost of material

Waste Waste Craft Optve

Craft Optve

Labour Labour

Productivity Loss or Gain £

Total loss/Gain =PR x TQ

Unit

3x3 Bed House-2 Story level

Quantity (TQ)

Delivered to site

(Estimate)

(Actual)

Hrs Hrs Hrs Hrs- PR=MD[A-X]+HC(EC-AC) +HL(EL-AL)

LOSS £

Description-Activities

(Act-) % % (EC) (AC) (EL) (AL)

SUPERSTRUCTURE

Facing Brick P.C £350 PER 1000 /Common Block

156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2

Common Brick/Block

264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2

Internal Walls-LWC Block

282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2

Internal Walls-Plastering-13mm thick

708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2

Internal Finish-Ceiling finish-set

504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x (-0.02) 4 M2

Wall Tiling-152x152

75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x (-0.02) 22 M2

COST CONTROL-AOA

1 3 82 11 15

12

0

0

14

14

40

40

4

55

43

43

47

47

55

55

61

61DU=14 DU= DU= DU= DU=54

44

58

9

44

47

7

55

59

14

45

45

6

55

55

13

70

70

17

43

46

5

45

59

10

59

66

16

26

DU=4

DU=1

DU=1

3

DU=2

DU=1

DU=1

DU=1 8

DU=1

DU=4

DU=3

DU=2

DU=2

BENCHMARKING AND PRODUCTIVITY ACTIVITIES 1-2, 2-3, 3-4, 1-12, 1-9, ….To measure Items such as: Time (increase/decrease) Cost (increase/decrease) Labour (increase/decrease) Material (Material

waste-increase/decrease) Machinery (efficiency

increase/decrease).

BENCHMARKING AND PRODUCTIVITY Compare Actual completion time for

Activities 1-2, 2-3,..aganist allocated time for Activities 1-2, 2-3,

Compare Actual completion cost for Activities 1-2, 2-3,..aganist allocated cost for Activities 1-2, 2-3,

Compare Actual waste allowed(%) for Activities 1-2, 2-3,..against allowed waste (%) for Activities 1-2, 2-3,



Productivity measurement table-related to case no.1

CRAFT/LABOUR

PRODUCTIVITY

CASE NO.1 POOR



Craft Optve

Labour Labour

Productivity Loss or Gain £

Total loss/Gain =PR x TQ

Unit


Quantity (TQ)

Delivered to site

(Estimate)

(Actual)

Hrs Hrs Hrs Hrs- PR=MD[A-X]+HC(EC-AC) +HL(EL-AL)

LOSS £

Descrip tion-Activities

(Act -) % % (EC) (AC) (EL) (AL)

SUPERSTRUCTURE

Facing Brick P.C £350 PER 1000 /Common Block

156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2

Common Brick/Block

264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2

Internal Walls-LWC Block

282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2

Internal Walls-Plastering -13mm thick

708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2

Internal Finish-Ceiling finish-set

504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x (-0.02) 4 M2

Wall Tiling-152x152

75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x (-0.02) 22 M2

carry outcalculations-useformulas (ACTUAL)

Informationfrom bill of quantity(ESTIMATION)

Net Rate


Total Time

Total Cost

Total Cost

Total Time

Total Time

Total Cost

Total Cost

Unit

(£) Rate Quant-

Quant-

Cost Cost Est- Est- Est- Est- Act.- Act.- Act- Act-



(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) 64.5

5 72.94 160 - 1167

0 - 464 688 3257.3 3969.7

5 - - - - M2

57.29

64.73 130 - 8414.9

- 63.75 315.9 447.15 1822.75

- - - - M2

40.81

46.12 225 - 10377

- 506.25

393.75

3553.9 2271.95

- - - - M2

35.24

39.82 410 16326

- 922.5 451 6475.95

2602.25

- - - - M2

13.91

15.98 440 - 7031.2

- 638 484 4478.75

2792.7 - - - - M2

5.04 5.69 1125 - 6401.3

506.25

258.75

3553.9 1492.95

- - - - M2

3.99 4.5 785 - 3532.5

196.25

102 1377.7 588.55 - - - - M2

26.88

30.37 90 - 2733.3

- 90 54 631.8 311.6 - - - - M2

Net Rate


Total Time

Total Cost

Total Cost

Total Time

Total Time

Total Cost

Total Cost

Unit

(£) Rate Quantity

Quantity

Cost Cost (Est-) (Est-) (Est-) (Est-) (Act.-)

(Act.-) (Act-) (Act-)



(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)

64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2

1 3 82 11 15

12

0

0

14

14

40

40

4

55

43

43

47

47

55

55

61


44

58

9

44

47

7

55

59

14

45

45

6

55

55

13

70

70

17

43

46

5

45

59

10

59

66

16

26

DU=4

DU=1

DU=1

3

DU=2

DU=1

DU=1

DU=1 8

DU=1

DU=4

DU=3

DU=2

DU=2

Network Programming(AOA)-ESTIMATION

GanttChart-ACTUAL

GanttChart-ESTIMATION

1 3 82 11 15

12

0

0

14

14

40

40

4

55

43

43

47

47

55

55

61


44

58

9

44

47

7

55

59

14

45

45

6

55

55

13

70

70

17

43

46

5

45

59

10

59

66

16

26

DU=4

DU=1

DU=1

3

DU=2

DU=1

DU=1

DU=1 8

DU=1

DU=4

DU=3

DU=2

DU=2

Network Programming(AOA)-ACTUAL

LABOURYESNOMATERIALS(wastage)

YESNO

MACHINERYYESNO

COST OVERRUN(YES)

COSTOVERRUN(NO)

COST OVERRUN(NO)

YES A

A

Carry outcalculationsuse formula(ACTUAL)

Productivity measurement table -related to case no.1

CRAF T/LABOUR

PRODUCTIVITY

CASE NO.1 POOR



Craft Optve

Labour Labour

Product ivity Loss or Gain £

T otal loss/Gain =PR x TQ

Unit


Quantity (TQ)

Delivered to site

(Estimate)

(Actual)

Hrs Hrs Hrs Hrs- PR=MD[A-X]+HC(EC-AC) +H L(E L-AL)

LOSS £

Descript ion-Activit ies

(Act-) % % (EC) (AC) (EL) (A L)

SUPERSTRUCTURE

Facing Brick P.C £350 PER 1000 /Commo n Block

156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2

Common Brick/Block

264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2

Internal Walls-LWC Blo ck

282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2

Internal Walls-Plas tering-13m m thick

708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2

Internal Finish -Ceiling finish -set

504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x ( -0.02) 4 M2

Wall Tiling-152x152

75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x ( -0.02) 22 M2

SITE ENGINEERS

MANAGEMENT

CHIEF EXECUTIVE

LOWPRODUCTIVITYCOST OVERRUN

HIGHPRODUCTIVITY

BENCHMARKING AND PRODUCTIVITY COST OF MATERIALS

31.145% WASTE ALLOWED6.50% WASTE EXPERIENCED31.14(6.50-5)=31.14X1.50=£46.7146.71X156=7286.76THE ESTIMATED COST FOR THIS ITEM=7286.76-46.71=7240.05


Waste Waste

Quantity (TQ)

Delivered to site

(Estimate)

(Actual)

(Act-) % %

156 31.14 5% 6.50%

264 18.88 5% 6.50%

282 8 5% 7.00%

708 1.71 5% 6.50%

004 benchmarking and productivity

Engineering