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SUCCESS SUCCESS FACTORSFACTORS(KPI’S)(KPI’S)

RESEARCH MODEL (Process model productivity on site)

Organisational Factors

Contract management

Finance

Etc

PROJECT WORK ENVIRONMENT

Pre-construction Activities (1) D1. Client brief D2. Project objectives D3. Specification D4. Design/build-ability D5. Contractual arrangement D6. Planning D7. Scheduling D8. Estimating

Site/Project Manager (2) Characteristics D9. Experience/capability D10. Leadership style D11. Authority/influence D12. Goal commitment D13. Involvement

Labour (6) Characteristics D39. Subcontracting

Labour D40. Direct labour

Management (3) Factors D14. Clarity of tasks D15. Team work D16. The style of management D17. Safety management

Management (4) System D18. Planning D19. Communication D20. Controlling D21. Co-ordinating

Resource (5) Management D22. Labour selection D23. Labour control D24. Material selection D25. Material handling D26. Plant D27. D31. Waste on site D32. D38. Delay and Disruption on site

Motivating Factors (7) D41-D46 Hygiene Factors D47-D55

P R O D U C T I V I T Y

Project Performance Time Cost Quality Safety

Job Satisfaction

Effort Rewards

Ability and Skill of worker

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Key Performance Indicators are quantifiable

measurements. They reflect the critical success factors of an

organization. It reflects the level of productivity. Also, it reflects the level of project success. Therefore, project success is about meeting all

the KPI’s. KPI’s vary depending on the kind organizations

or companies. For a business-may have a KPI as the annual

sales volume.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S KPIs of a social service organization may have to do

more with the number of people helped out. KPI’s for Colleges may have to do with the number of

students graduating per year. It is clear that construction industry’s KPI’s have to do

with: Time Cost quality Safety customer satisfaction environment and more Etc.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Key Performance Indicators provides

business executives with: accurate reports on each project success

or failure. They may consist of any combination of: reports, spreadsheets and charts. They may be company profit (global or

regional).

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S they may show sales trends over time supply chain information or any other long-

term consideration Key Performance Indicators must reflect

the organizational goals. KPI’S must be quantitative and

qualitative.

PLEASE REFER TO ARTICLES BELOW

Framework for Measuring Success ofConstruction ProjectsReport 2001-003-C-01The research described in this report wascarried out byAuthor Dr Albert PC ChanAdjunct Professor School of ConstructionManagement and Property

PLEASE REFER TO ARTICLES BELOW

Queensland University of TechnologyBrisbane, AustraliaProject Leader Tony SidwellResearch Program C:Construction Project Delivery StrategiesProject 2001-003-C:Value Alignment Process for Project Deliver

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SKPI’S-TIME Construction Time is the absolute time. Is calculated as the number of days/weeks

from start on site to practical completion of the project.

Construction time = Practical Completion Date – Project Commencement Date

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SSpeed of Construction is: The relative time, which is defined by: Gross floor area / the construction time.Speed of Construction =

Gross Floor Area (m 2)/ Construction Time (days/weeks)

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Time variation is measured by the percentage of

increase or decrease in the estimated project in days/weeks, discounting the effect of Extension of Time (EOT) granted by the client.

Time variation ={(Construction Time – RevisedContract Period) / Revised Contract Period)}X100Where Revised Contract Period = Original

Contract Period + EOT

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S

Time variation =Construction time-Revised contract Period

Revised contract periodx 100

Albert PC Chan (2000)

Key PerformanceIndicators ( KPIs )

Objective MeasuresConstruction time

Speed of constructionTime variation

Unit costPercentage net variation/ final cost

Net present valueAccident rate

Environment ImpactAssessment (EIA) Scores

Subjective MeasuresQuality

FunctionalityEnd-user’s satisfaction

Client’s satisfactionDesign team’s satisfaction

Construction team’s satisfaction

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SKPI’S-COST The measure of cost can be in form of unit

cost, percentage of net variation over final cost.

Unit cost is a measure of relative cost and is defined by the final contract sum divided by the gross floor area.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SUnit Cost =Final Contract Sum / Gross Floor Area(m2) Percentage net variation over final cost

(%NETVAR) is the ratio of net variations to final contract sum expressed in percentage term.

It gives an indication of cost overrun or under run.

Yeong’s (1994) approach in measuring this term is used:

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S%NETVAR =[(Net Value of Variations)/(Final Contract Sum)] x100

Where Net Value of Variations = Final Contract Sum – Base

Base = Original Contract Sum + Final Rise and Fall – Contingency Allowance

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SKPI’S-SITE SAFETYDuty holders under CDM 2007 are: Clients-A 'client' is anyone having construction

or building work carried out as part of their business. This could be:

an individual Partnership company property developers management companies for domestic

properties.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S A CDM co-ordinator is required where

the project is notifiable. Their main duties are to:

advise and assist the client with their duties

notify H&S details to HSE co-ordinate health and safety aspects of

design work co-operate with others involved with the

project

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S apply good communication between

supply chain; liaise with the principal contractor

regarding ongoing design work; collect relevant H&S issues and pass on

pre-construction information; Prepare and keep update the health and

safety file.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SDesigner’s duties are: Eliminate hazards and risks during design. Provide information about remaining risks. Where projects are notifiable under the

Regulations.designers must also: Check that the client is aware of their duties and

that a CDM co-ordinator has been appointed. Provide all the information needed for the health

and safety file.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S The principal contractor must: Plan manage and monitor construction phase in

liaison with contractor prepare, develop and implement a written

plan Prepare, develop and implement site

rules.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S make sure Initial plan is completed

before the construction phase starts. Give contractors relevant parts of the

plan. Make sure suitable welfare facilities are

provided from the start and maintained throughout the construction phase.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Check competence of all appointees Ensure all workers have site inductions Also, any further information and training

needed for the work Consult with the workers Liaise with CDM co-ordinator regarding

ongoing design Secure the site.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S

Accident rate = (Total no. of construction site accidents /Total no. of workers employed on a specific project) x1000

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SKPI’S-ENVIROMENTALEnvironmental performance are: the construction industry has a major

impact on the environment; both in terms of the resources it

consumes; and the waste it produces. The construction industry is responsible

for producing all kinds of wastes.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S the amount and type of which depends on

factors such as: the stage of construction; type of construction work; practices on site; material housekeeping; handling of materials; storage of materials; Etc.

Typical adverse material management (Thomas et al, 1989)

Poor organisation of storage area on site

Extensive multiple handling of materials

Material badly stored or marked

Poor House Keeping

Wastage on Site

Access to storage area obscured by debris

Lack of planning of material deliveries

Lack of co-ordination between the time of deliveries and erection.

Remobilization and re-familiarisation after a lengthy delay.

Running out of materials

Lack of anticipation about material shortage

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Over 90% of non -energy minerals

extracted in Great Britain are used to supply the construction industry with materials.

Every year more than 70 million tones of construction and demolition waste has been produced in England and Wales.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Reduce > Reuse > Recycle The construction industry is the UK’s

largest user of natural resources, and produces a large amounts of waste.

Everyone in the construction industry can contribute to tackling waste-by reducing waste, using materials in a better way, and collecting waste for recycling.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S 400 MILLION TONNES of material is used 100 MILLION TONNES of waste is

produced – more than one-third of the UK’s annual waste

25 MILLION TONNES of construction waste is disposed to landfill

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S International Organization for

Standardization (ISO developed a series of standards).

They are known as ISO14000 series. ISO 14000 contains standards and

guidance documents on: environmental management; and provides a benchmark of a proper

environmental management practice.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S The ISO 14000 series consist of five

standards: 1. Environmental management systems 2. environmental auditing3. environmental labelling4. environmental performance evaluation5. life cycle assessment

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S ISO 14001: 1996-an environmental

management standard against which an organization can be audited on a

voluntary basis. It is applicable to different organizations in

diverse geographical, cultural and social conditions.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SKPI’S-Lean construction In the past 50 years, manufacturing

industries have greatly improved their competitiveness.

This has been achieved through the use of lean methods such as:

Supply Chain Management Just-In-Time techniques. Also, for several years lean methods have

been applied to the construction industry.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Lean construction is a process used to

maximizes value and reduces waste. Lean construction comes from Lean

production. It captures these objectives through the

use of Supply Chain Management (SCM); and Just-In-Time (JIT) techniques; Also, by sharing information between all

the parties involved in the production process.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’SApplying Lean Thinking in construction Using experienced design teams The same design team working on the

design of the project from beginning to the end.

It speeds up the design process

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Use innovative approaches to speed up

the design process. Innovative ideas in design and assembly. The use of pre-fabricated building

elements. Items manufactured off site and pre-

assembled on site.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S Supply Chain Management (SCM)

analyzes the impact of design work on the construction process.

It enables much better project planning and management.

Through SCM, all parties are kept aware of important factors such as:

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S commitments schedules A high level of team work and corporation

that can source, produce, and deliver products with minimal lead-time and expense.

SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S

Functionality User expectation and satisfaction Participants’ satisfaction

Productivity/Project success

Projectmission

Projectschedule

Technologicalfactors

Socialfactors

Managementsupport

Trouble-shooting

CommunicationControl andmonitoring

Managerialfactors

Clientacceptance

Project structure

Projectlife cycle