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BENCHMARKINBENCHMARKING AND G AND PRODUCTIVITYPRODUCTIVITY
[email protected]://www.construction-productivity.co.uk
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
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.
BENCHMARKING AND PRODUCTIVITY
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.
BENCHMARKING AND PRODUCTIVITY
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.
BENCHMARKING AND PRODUCTIVITY
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 PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITY
BENCHMARKING AND PRODUCTIVITYCompetitive benchmarking is the benchmarking applied to one’s performance against competitors;
measures of project excellence and effectiveness.
BENCHMARKING AND PRODUCTIVITY
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.
BENCHMARKING AND PRODUCTIVITY
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.
BENCHMARKING AND PRODUCTIVITY
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.
BENCHMARKING AND PRODUCTIVITY
QuantitativeQualitative
One-on-oneDomestic
External
Benchmarking
InternalGlobal
(Competitivebenchmarking)
BENCHMARKING AND PRODUCTIVITY
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
Craft Labour Craft Labour 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
Craft Labour Craft Labour 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
Gross Total Total Total Total Total Time
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-)
(Est-) (Act-) (Est-) (Act-) Craft Labour
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)
64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2
Step 1-pull information from bill of quantity
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,
BENCHMARKING AND PRODUCTIVITY
Step 1-pull information from bill of quantity
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 £
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
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
Craft Labour Craft Labour 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
Gross Total Total Total Total Total Time
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-)
(Est-) (Act-) (Est-) (Act-) Craft Labour
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (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
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
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
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
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
Total MD =Cost of material
Waste Waste Craft Optve
Craft Optve
Labour Labour
Product ivity Loss or Gain £
T otal 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) +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
Total MD =Cost of material
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%