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Construction Productivity Productivity Measurement and Benchmarking
Productivity <ul><li>By popular definition productivity simply refers to the general efficiency of an organization or indi...
Productivity <ul><li>A company that most minimizes input and maximizes output has the highest productivity </li></ul><ul><...
Why is Productivity Important? <ul><li>Extremely vital performance measurement tool within the construction industry </li>...
Why is Productivity Important? <ul><li>Productivity improvement in construction industry may have a significant impact on ...
Factors Affecting Construction Labour Productivity <ul><li>Project uniqueness </li></ul><ul><li>Technology </li></ul><ul><...
Factors having adverse effect on productivity <ul><li>Overtime and or Fatigue </li></ul><ul><li>Errors and omissions in pl...
<ul><li>Regulations of various types </li></ul><ul><li>High absenteeism </li></ul><ul><li>High turnover </li></ul><ul><li>...
Quality and Productivity <ul><li>Folklore True Relationship </li></ul><ul><li>Outmoded relationship Modern view of Relatio...
Quality and Productivity <ul><li>Deming’s Quality Chain Reaction </li></ul>Quality Customer Satisfaction Market Share Prod...
Productivity and Safety <ul><li>Worldwide – construction industry produces more injuries than other industries </li></ul><...
Methods of Improving Productivity <ul><li>The following factors can lead to the improvement in productivity: </li></ul><ul...
<ul><li>Time and motion studies to improve efficiency, reduce fatigue and work smarter </li></ul><ul><li>Safety programs <...
Productivity Calculation <ul><li>Inputs Output </li></ul><ul><li>Work hours Value of work (Rs) </li></ul><ul><li>Quantitie...
Models of Productivity <ul><li>Economic Model </li></ul>TFP = Total Value of Output / Total Value of Input  = Output (Rs) ...
Activity Oriented Model <ul><li>Measured in terms of Labour Productivity </li></ul><ul><li>Can be measured in two ways: </...
Input and output being the same the productivity comparison depends on the following factors <ul><li>Size of the Job </li>...
Major causes leading to poor productivity <ul><li>Congestion </li></ul><ul><li>Sequencing </li></ul><ul><li>Lack of materi...
Productivity Benchmarking <ul><li>Benchmarking is a systematic process of searching for the best practices, innovative ide...
Types of Benchmarking <ul><li>Internal </li></ul><ul><li>- Comparison among similar operations within one’s own organizati...
Types of Benchmarking <ul><li>Generic </li></ul><ul><li>-  Comparison of work processes to others who have innovative, exe...
Benchmarking Roadmap Determine what to Benchmark Determine Key Factors to be measured Develop Data Collection Methodology ...
Benchmarking Scope <ul><li>Products and Services </li></ul><ul><li>Business Processes </li></ul><ul><li>Performance Measur...
Performance Indicators <ul><li>Benchmarking is essentially for continuous improvement of any organization </li></ul><ul><l...
Key Performance Indicators <ul><li>A few major ones are listed below </li></ul><ul><li>Cost </li></ul><ul><li>Scheduled Du...
Labour Productivity Study <ul><li>The study focused on evolving a framework for benchmarking Labour Productivity for build...
Benchmarking in Context of Construction Industry <ul><li>Major portion of buildings project cost consists of the following...
Concrete productivity in various regions in India <ul><li>Regions Productivity (cum/manday) </li></ul><ul><li>Mumbai 2.97 ...
Comparison of Concrete Productivity with International Standards <ul><li>Country M’hr/cum cum/M’day </li></ul><ul><li>US 1...
Labour Productivity for Formwork <ul><li>Depends on factors like: </li></ul><ul><li>Type of Formwork system used </li></ul...
Formwork productivity in various regions in India <ul><li>Regions Productivity (Sqm/Manday ) </li></ul><ul><li>Mumbai 1.42...
Formwork productivity in various countries <ul><li>Country M’hr/Sqm Sqm/M’day </li></ul><ul><li>US 0.82 9.79 </li></ul><ul...
Labour Productivity for Masonry <ul><li>Depends on factors like </li></ul><ul><li>Size of Block </li></ul><ul><li>Method o...
Brick masonry productivity in various countries <ul><li>Country M’hr/cum cum/M’day </li></ul><ul><li>US 2.35 3.40 </li></u...
Labour Productivity for Reinforcement <ul><li>Depends on the factors like </li></ul><ul><li>Diameter of bar </li></ul><ul>...
Reinforcement productivity in various regions in India <ul><li>Regions Productivity (Kg / Man Day) </li></ul><ul><li>Mumba...
Conclusions <ul><li>Construction productivity levels in India are low compared to international levels </li></ul><ul><li>T...
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Construction productivity

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A detailed presentation on construction Productivity in India

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Construction productivity

  1. 1. Construction Productivity Productivity Measurement and Benchmarking
  2. 2. Productivity <ul><li>By popular definition productivity simply refers to the general efficiency of an organization or individual </li></ul><ul><li>The output of any aspect of production per unit of input </li></ul><ul><li>Economic measure of output of a worker, machine, or an entire national economy in the creation of goods and services to produce wealth </li></ul><ul><li>In the business world, productivity measures investment in capital, such as buildings, machines, raw materials & in labour against the profits from the sale of the product </li></ul>
  3. 3. Productivity <ul><li>A company that most minimizes input and maximizes output has the highest productivity </li></ul><ul><li>A total concept that addresses the key elements of competition i.e. innovation, cost, quality and delivery </li></ul><ul><li>Should be viewed as value adding in addition to optimizing </li></ul><ul><li>Construction is a labour intensive process </li></ul><ul><li>Manpower is one of the productive resources in construction </li></ul><ul><li>Construction productivity largely depends upon human performance </li></ul><ul><li>Reliable measures of productivity is output per work-hour being achieved by workers </li></ul>
  4. 4. Why is Productivity Important? <ul><li>Extremely vital performance measurement tool within the construction industry </li></ul><ul><li>Due to size of construction industry productivity trends carry immense consequences for the economy as a whole </li></ul><ul><li>Productivity growth is important to an individual enterprise, an industry or an economy </li></ul><ul><li>Construction industry accounts for 3 – 8% of the GDP in most countries </li></ul>
  5. 5. Why is Productivity Important? <ul><li>Productivity improvement in construction industry may have a significant impact on improving GDP </li></ul><ul><li>Productivity growth is the key determinant of international competitiveness in the long term </li></ul><ul><li>Improving relative productivity growth improves a country’s competitive position </li></ul><ul><li>The construction industry – most challenging and demanding still many opportunities for productivity improvement </li></ul>
  6. 6. Factors Affecting Construction Labour Productivity <ul><li>Project uniqueness </li></ul><ul><li>Technology </li></ul><ul><li>Management </li></ul><ul><li>Labour organization </li></ul><ul><li>Real wage trends </li></ul><ul><li>Construction training </li></ul>
  7. 7. Factors having adverse effect on productivity <ul><li>Overtime and or Fatigue </li></ul><ul><li>Errors and omissions in plans and specifications </li></ul><ul><li>Multitude of change orders </li></ul><ul><li>Design complexity and Design completeness </li></ul><ul><li>Stacking of trades </li></ul><ul><li>Dilution of supervision </li></ul><ul><li>High accident rate </li></ul><ul><li>Jurisdictional disputes </li></ul><ul><li>Work rules and restrictive work practices </li></ul><ul><li>Availability of skilled labour </li></ul><ul><li>Reassignment of manpower from task to task </li></ul><ul><li>Material location – above ground level/above floor level </li></ul><ul><li>Adverse temperature or weather </li></ul><ul><li>Inadequate lighting </li></ul>
  8. 8. <ul><li>Regulations of various types </li></ul><ul><li>High absenteeism </li></ul><ul><li>High turnover </li></ul><ul><li>Material shortages </li></ul><ul><li>Ground water level </li></ul><ul><li>Attitude of the workforce </li></ul><ul><li>Crew size and composition </li></ul><ul><li>Economic conditions & level of unemployment </li></ul><ul><li>Size and duration of the project </li></ul><ul><li>Timeliness of decisions </li></ul><ul><li>Impractical QA / QC tolerances </li></ul><ul><li>Uncontrolled breaks </li></ul><ul><li>Time of the day & day of the week </li></ul><ul><li>Inadequate temporary facilities: parking, change / rest rooms etc </li></ul>
  9. 9. Quality and Productivity <ul><li>Folklore True Relationship </li></ul><ul><li>Outmoded relationship Modern view of Relationship </li></ul>Quality Quantity Quality Quantity Improvement of Process – TQM Leads to greater uniformity of product Reduces mistakes and rework Reduces waste of manpower, machine,time and materals Increases output with lowered cost Other Benefits Better competitive position Happier people on the job More jobs Improved morale
  10. 10. Quality and Productivity <ul><li>Deming’s Quality Chain Reaction </li></ul>Quality Customer Satisfaction Market Share Productivity Prices Costs Profits Improve Quality Costs decrease because of less rework, fewer mistakes, delays, snags, better use of machine, time and materials Productivity improves
  11. 11. Productivity and Safety <ul><li>Worldwide – construction industry produces more injuries than other industries </li></ul><ul><li>Construction industry – often criticized for poor performance (low productivity, waste, health and safety problems) </li></ul><ul><li>Strongest relations exist between work organizational factors, working conditions & health & absenteeism </li></ul><ul><li>Research shows that occupational safety and health improved (less health complaints and less accidents) when working conditions and work organization ameliorated </li></ul><ul><li>Improving safety improves productivity </li></ul>
  12. 12. Methods of Improving Productivity <ul><li>The following factors can lead to the improvement in productivity: </li></ul><ul><li>Training programs for labour </li></ul><ul><li>Incentives in contract for good performance </li></ul><ul><li>Enough tools in working place and proper planning </li></ul><ul><li>Optimizing site facilities </li></ul><ul><li>Availability of resources </li></ul><ul><li>Competition between crews, areas or shifts </li></ul><ul><li>Good supervision and optimum manpower </li></ul><ul><li>Short interval scheduling </li></ul><ul><li>Innovative materials and equipment </li></ul><ul><li>Time lapse film analysis for critical activities </li></ul><ul><li>Cost reporting and work sampling of critical activities </li></ul>
  13. 13. <ul><li>Time and motion studies to improve efficiency, reduce fatigue and work smarter </li></ul><ul><li>Safety programs </li></ul><ul><li>Use of precast and prestressing concrete elements </li></ul><ul><li>Critical path method of planning, scheduling and control </li></ul><ul><li>Value engineering </li></ul><ul><li>Worker motivation programs </li></ul><ul><li>Constructability review of design </li></ul><ul><li>Standardization </li></ul><ul><li>Preplanning activities </li></ul><ul><li>Effective utilization of sub-contractors </li></ul>
  14. 14. Productivity Calculation <ul><li>Inputs Output </li></ul><ul><li>Work hours Value of work (Rs) </li></ul><ul><li>Quantities </li></ul><ul><li>Equipment </li></ul><ul><li>Rupees </li></ul><ul><li>Materials </li></ul><ul><li>Energy </li></ul><ul><li>Capital </li></ul>Conversion Factor
  15. 15. Models of Productivity <ul><li>Economic Model </li></ul>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
  16. 16. Activity Oriented Model <ul><li>Measured in terms of Labour Productivity </li></ul><ul><li>Can be measured in two ways: </li></ul><ul><li>a) Output / Input or b) Input / Output </li></ul><ul><li>Input can be in terms of Cost or Man hours and Output can be in terms of Unit of work performed </li></ul><ul><li>Generally the second model i.e. Input / Output is used to measure the productivity but again the choice depends on the monitoring party </li></ul>
  17. 17. Input and output being the same the productivity comparison depends on the following factors <ul><li>Size of the Job </li></ul><ul><li>Material Availability </li></ul><ul><li>Schedule of Activities </li></ul><ul><li>Connection or interlinking of activities </li></ul><ul><li>Support operations </li></ul><ul><li>Location </li></ul><ul><li>Therefore a comparison of productivity can only be made if the conditions are similar and also the activities are similar. </li></ul>
  18. 18. Major causes leading to poor productivity <ul><li>Congestion </li></ul><ul><li>Sequencing </li></ul><ul><li>Lack of materials </li></ul><ul><li>A high variability in the unit productivity value is an indication of poor productivity and a low variability indicates good productivity </li></ul>
  19. 19. Productivity Benchmarking <ul><li>Benchmarking is a systematic process of searching for the best practices, innovative ideas and highly effective operating procedures that lead to superior performance </li></ul><ul><li>Purpose of Benchmarking </li></ul><ul><li>a) Analyze the operations to </li></ul><ul><li>- Identify the critical cost components and areas for improvement </li></ul><ul><li>- Reduction in the cycle time of activities </li></ul><ul><li>b) To get knowledge of the competition & industry leaders </li></ul><ul><li>c) To incorporate the best of the best – learn & emulate the best </li></ul><ul><li>d) To gain superiority over competitors </li></ul>
  20. 20. Types of Benchmarking <ul><li>Internal </li></ul><ul><li>- Comparison among similar operations within one’s own organization </li></ul><ul><li>Competitive </li></ul><ul><li>- This is comparison to the best of the direct competitors </li></ul><ul><li>Functional </li></ul><ul><li>- Comparison of the methods with the companies with similar processes in the same function outside one’s country </li></ul>
  21. 21. Types of Benchmarking <ul><li>Generic </li></ul><ul><li>- Comparison of work processes to others who have innovative, exemplar work processes </li></ul><ul><li>Cooperative </li></ul><ul><li>- Contacting the best in class firms and asking them for knowledge sharing </li></ul><ul><li>Collaborative </li></ul><ul><li>- A group of firms sharing knowledge about a particular activity </li></ul>
  22. 22. 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 Identify Performance Gap and Reasons for it Develop Action Plan to Meet And Exceed Integrate Plan into Business Practices Improvement
  23. 23. Benchmarking Scope <ul><li>Products and Services </li></ul><ul><li>Business Processes </li></ul><ul><li>Performance Measures </li></ul>
  24. 24. Performance Indicators <ul><li>Benchmarking is essentially for continuous improvement of any organization </li></ul><ul><li>Parameter for benchmarking should be based on Key Performance Indicator (KPI) </li></ul><ul><li>There can be many KPI’s in the construction industry to measure the job performances </li></ul>
  25. 25. Key Performance Indicators <ul><li>A few major ones are listed below </li></ul><ul><li>Cost </li></ul><ul><li>Scheduled Duration </li></ul><ul><li>Quality </li></ul><ul><li>Scope of work </li></ul><ul><li>Procurement </li></ul><ul><li>Construction </li></ul><ul><li>Planning </li></ul><ul><li>Engineering Design </li></ul><ul><li>Operational Health & Safety </li></ul><ul><li>Sub-contracts </li></ul>Labour Productivity Rework Material Wastage Equipment Activities at planned rate
  26. 26. Labour Productivity Study <ul><li>The study focused on evolving a framework for benchmarking Labour Productivity for building projects in India </li></ul><ul><li>Data were collected from 39 sites through questionnaire and from 12 buildings project through personal interviews </li></ul><ul><li>The sites were located in Mumbai, Bangalore, Chennai, Hyderabad and Delhi </li></ul><ul><li>Labour productivity for these activities is benchmarked by comparing productivity levels both within and among the regions </li></ul><ul><li>Observed productivity at national level is compared with the international levels </li></ul>
  27. 27. Benchmarking in Context of Construction Industry <ul><li>Major portion of buildings project cost consists of the following activities </li></ul><ul><li>Concreting </li></ul><ul><li>Formwork </li></ul><ul><li>Masonry </li></ul><ul><li>Reinforcements </li></ul><ul><li>Labour productivity can be benchmarked very well based on these four activities </li></ul>
  28. 28. Concrete productivity in various regions in India <ul><li>Regions Productivity (cum/manday) </li></ul><ul><li>Mumbai 2.97 </li></ul><ul><li>Bangalore 0.85 </li></ul><ul><li>Chennai 0.79 </li></ul><ul><li>Hyderabad 0.99 </li></ul><ul><li>Delhi 0.49 </li></ul><ul><li>India Mean </li></ul><ul><li>Productivity cum/manday 1.22 </li></ul>
  29. 29. Comparison of Concrete Productivity with International Standards <ul><li>Country M’hr/cum cum/M’day </li></ul><ul><li>US 1.00 8.02 </li></ul><ul><li>England 1.50 5.35 </li></ul><ul><li>China 3.69 2.17 </li></ul><ul><li>Netherlands 1.24 6.47 </li></ul><ul><li>Japan 1.29 6.22 </li></ul><ul><li>Korea 1.26 6.36 </li></ul><ul><li>Saudi Arabia 1.88 4.27 </li></ul><ul><li>Turkey 2.32 3.44 </li></ul><ul><li>India 2.69 2.97 </li></ul>
  30. 30. Labour Productivity for Formwork <ul><li>Depends on factors like: </li></ul><ul><li>Type of Formwork system used </li></ul><ul><li>Quantity of formwork used </li></ul><ul><li>Type of Structure </li></ul><ul><li>Shifting methods </li></ul><ul><li>Labour skills </li></ul><ul><li>Resource availability </li></ul><ul><li>Safety and other issues </li></ul>
  31. 31. Formwork productivity in various regions in India <ul><li>Regions Productivity (Sqm/Manday ) </li></ul><ul><li>Mumbai 1.42 </li></ul><ul><li>Bangalore 1.90 </li></ul><ul><li>Chennai 2.19 </li></ul><ul><li>Hyderabad 1.65 </li></ul><ul><li>Delhi 1.10 </li></ul><ul><li>India Mean </li></ul><ul><li>Productivity Sqm/Manday 1.7 </li></ul>
  32. 32. Formwork productivity in various countries <ul><li>Country M’hr/Sqm Sqm/M’day </li></ul><ul><li>US 0.82 9.79 </li></ul><ul><li>England 1.23 6.53 </li></ul><ul><li>China 3.02 2.65 </li></ul><ul><li>Netherlands 1.01 7.90 </li></ul><ul><li>Japan 1.05 7.59 </li></ul><ul><li>Korea 1.53 7.77 </li></ul><ul><li>Saudi Arabia 1.54 5.21 </li></ul><ul><li>Turkey 1.90 4.20 </li></ul><ul><li>India 4.71 1.70 </li></ul>
  33. 33. Labour Productivity for Masonry <ul><li>Depends on factors like </li></ul><ul><li>Size of Block </li></ul><ul><li>Method of shifting </li></ul><ul><li>Lead and shift </li></ul><ul><li>Labour skill </li></ul><ul><li>Type of Structure </li></ul><ul><li>Safety and other issues </li></ul>
  34. 34. Brick masonry productivity in various countries <ul><li>Country M’hr/cum cum/M’day </li></ul><ul><li>US 2.35 3.40 </li></ul><ul><li>England 3.53 2.27 </li></ul><ul><li>China 8.70 0.92 </li></ul><ul><li>Netherlands 2.92 2.74 </li></ul><ul><li>Japan 3.03 2.64 </li></ul><ul><li>Korea 2.96 2.7 </li></ul><ul><li>Saudi Arabia 4.42 1.81 </li></ul><ul><li>Turkey 5.48 1.46 </li></ul><ul><li>India 6.35 1.26 </li></ul>
  35. 35. Labour Productivity for Reinforcement <ul><li>Depends on the factors like </li></ul><ul><li>Diameter of bar </li></ul><ul><li>Bar bending schedule </li></ul><ul><li>Quantity of reinforcement </li></ul><ul><li>Method of transport </li></ul><ul><li>Availability of bar bending and cutting machine </li></ul><ul><li>Skill of labour </li></ul><ul><li>Type of Structure </li></ul><ul><li>Safety </li></ul>
  36. 36. Reinforcement productivity in various regions in India <ul><li>Regions Productivity (Kg / Man Day) </li></ul><ul><li>Mumbai 108 </li></ul><ul><li>Bangalore 86 </li></ul><ul><li>Chennai 82 </li></ul><ul><li>Hyderabad 79 </li></ul><ul><li>Delhi 56 </li></ul><ul><li>India 90.5 (Mean) </li></ul>
  37. 37. Conclusions <ul><li>Construction productivity levels in India are low compared to international levels </li></ul><ul><li>The reasons identified for low productivity included less degree of mechanization, conventional practices, lack or training and low focus on productivity by management </li></ul><ul><li>The data used in the study is from large companies executing large building projects. There is a need to study the productivity levels in other types of projects </li></ul>
  38. 38. Thank You

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