Download - 055 KPI'S Success Factor
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SUCCESS SUCCESS FACTORSFACTORS(KPI’S)(KPI’S)
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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
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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.
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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.
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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).
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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.
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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
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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
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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
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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)
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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
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SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
Time variation =Construction time-Revised contract Period
Revised contract periodx 100
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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
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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.
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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:
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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
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
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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.
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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
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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.
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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
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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.
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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.
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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.
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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
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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.
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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:
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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.
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SUCCESS FACTORS-KPI’SSUCCESS FACTORS-KPI’S
Functionality User expectation and satisfaction Participants’ satisfaction
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Productivity/Project success
Projectmission
Projectschedule
Technologicalfactors
Socialfactors
Managementsupport
Trouble-shooting
CommunicationControl andmonitoring
Managerialfactors
Clientacceptance
Project structure
Projectlife cycle