The document discusses key performance indicators (KPIs) that are used to measure success in construction projects. It identifies common KPIs related to time, cost, quality, safety, and environmental impact. Time KPIs include construction time and speed of construction. Cost KPIs include unit cost and percentage variation from final cost. Safety KPIs include accident rates. Environmental KPIs quantify waste production and resource use. The document also discusses lean construction principles like supply chain management and just-in-time techniques that aim to reduce waste and maximize value.
2. 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
SatisfactionEffort Rewards
Ability and Skill of worker
3. 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.
4. 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.
5. 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).
6. 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.
7. PLEASE REFER TO ARTICLES BELOW
Framework for Measuring Success of
Construction Projects
Report 2001-003-C-01
The research described in this report was
carried out by
Author Dr Albert PC Chan
Adjunct Professor School of Construction
Management and Property
8. PLEASE REFER TO ARTICLES BELOW
Queensland University of Technology
Brisbane, Australia
Project Leader Tony Sidwell
Research Program C:
Construction Project Delivery Strategies
Project 2001-003-C:
Value Alignment Process for Project Deliver
9. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
KPI’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
10. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
Speed 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)
11. 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 – Revised
Contract Period) / Revised Contract Period)}X100
Where Revised Contract Period = Original
Contract Period + EOT
14. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
KPI’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.
15. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
Unit 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:
16. 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
17. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
KPI’S-SITE SAFETY
Duty 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.
18. 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
19. 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.
20. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
Designer’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.
21. 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.
22. 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.
23. 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.
25. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
KPI’S-ENVIROMENTAL
Environmental 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.
26. 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.
27.
28. 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.
29. 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.
30. 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
31. 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.
32. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
The ISO 14000 series consist of five
standards:
1. Environmental management systems
2. environmental auditing
3. environmental labelling
4. environmental performance evaluation
5. life cycle assessment
33. 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.
34. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
KPI’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.
35. 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.
36. SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
Applying 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
37. 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.
38. 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:
39. 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.