dr f dejahang (bsc ceng, bsc (hons) construction mgmt, msc, mciob, phd) 056 construction...

Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD)

056CONSTRUCTION PRODUCTIVITY-

PART 2

CONSTRUCTION PRODUCTIVITY

• Productivity level have a direct impact on the macro-economic success or failure of modern industrialised economies.

• The industry employs a large number of skilled, semi skilled and un-skilled workers.

CONSTUCTION PRODUCTIVITY

• The industry deals with a wide range of building and civil engineering projects.

• Improving construction productivity depends on many factors.

• its activity also provides work for the economic sector.

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

PRODUCTIVITY MODEL

• site/project manager Characteristics• management Factors• resource Management• management Systems • labour Characteristics• waste on site• delay and disruption• motivating Factors• hygiene Factors

CONSTRUCTION PRODUCTIVITY

• The role of project manger:• Mobilising resources• Remove constraints and difficulties

from the siteTo study construction productivity iscomplex and difficult. • Construction companies find it

difficult, or are unable to study the level of productivity within their organisation.

• Mainly, because of the limitations.


Common failures within theconstruction industry are oftenmanifest in: • cost and time overruns; • poor quality workmanship; • repetitive work; • wastage on site and at the head

office;• idleness within the workforce;


• incorrect estimating;• poor planning;• lack of good quality product; • safety management-site safety

and the level of accidents; • Claims; • Disputes;• poor quality machinery on site.


• Harvey and Ashworth (1998) have investigated that, despite Britain’s improved productivity,

• West Germany, France and Italy are 104%, 41% and 12% more productive than Britain respectively.


• In 2008 only 2% difference in productivity amongst top 100 firms.

• Amongst average and small UK construction firms, up to 45% more manpower is required to complete a project compared to other European Countries.


• Dispute in February 2009.• The use of foreign contractors and

skilled labour force on UK civil engineering construction projects.

• Lord Mandelson appointed Mark Gibson (The Whitehall and Industry Group)


• To review the UK construction productivity and make recommendations.

• Larger index numbers indicate poorer productivity.

• For example, relative to US Gulf Coast, UK projects have 11% worse productivity.


• Table1.01 shows comparative labour productivity between years 1998 to 2008.

• US Gulf Coast 1.00• Germany 1.05• Continental Europe 1.06 • The Netherland 1.08• UK 1.11• France 1.20


• In his report Mark Gibson compared the productivity level amongst several European countries.

• With USA construction contractors• His investigation showed that UK

productivity has improved compared to earlier reports.


• Countries represented in Continental Europe were France, Germany, The Netherlands, Italy, Spain and Ireland.

• However, to compare with earlier report UK productivity has been improving over the past 10 years.


• Q 1) Today’s Productivity level in West Germany, France and Britain are? 1-5% difference.

• The construction industry employs more than 7% of Europe’s workforce and represents approximately 12% of GDP.


• The world economic forum 2009 ranks Britain 76th out of 134 nations on productivity/

efficiency of public sector.• UK is behind countries such as:• Greece • Ethiopia• Mozambique.


Sir Michael Latham also identified:• potential for cost reduction in his

report entitled ‘Constructing the Team’ (HMSO July 1994).

• A potential 30% saving was also strongly advocated.


There are five basic resources usedto produce goods. These are:• Capital • Land • Materials • Plant/ Machinery • Manpower


Use of high quality management

techniques such as;• Planning• Scheduling• money invested in the

project


Including:• improved Communication• efficient use of labour• efficient use of material and

equipmentUse other methods of constructionproductivity improvement such as:• Lean construction;


• Last planner system;• JIT & Quality Management Systems;• Construction Productivity-Logistics;• Productivity Improvement;• ISO 9000, ISO 9001, ISO1400; • Quality Assurance.


• Sir Michael Latham set up the Working Group II.

• To find out what steps are required to improve Productivity.

• The board agreed that a single solution to the problem is unlikely to be found.

• The board concluded that some important tried and tested measures had already been taken.

• These methods had proven to be successful.


Their recommendation suggestedthat issues such as:• Value Engineering (VE) • Life cycle costing • Pre-fabrication• StandardisationWhich will improve the level ofproductivity.


Group II recommended thepromotion of other techniques not commonly used in the UK. This included: • Total quality management • Total quality control and bench-

marking


Project mangers can alsoimprove construction productivityby: • The use of best practice productivity

data which has been collected carefully and accurately.

These information should cover areassuch as:• Tendering;• planning processes;• The use of IT – based information

management systems (MIS) for material procurement.


• Training site workers so that they become multi – skilled craftsmen.

• The introduction of post qualification training on new products.

• Methods and time management techniques.

• The promotion of pre-fabrication and assembly.


Some researchers give reasonsfor the decline in productivitydue to:• A big step in communication

channels; • Often on large construction

projects where there is a lack of a clear communication method.


• The time that members of the management team spend on site obtaining data.

• Writing reports and sending to different departments.

• All these paper work diverts them from giving adequate attention to managing the project.


• Over looking areas on the construction site which need improvement during the construction period.

• Lack of a ‘team effort culture’, which would bind all levels of the workforce together.

• The lack of a speedy feedback system.


• Technological Factors-The smaller construction firms are less adaptable.

• They are slower to accept the arrival of new technology.

• They delay the Policy of increased mechanisation on site.

• In general they are less competitive.


• BSRIA in mid-90th has identified that the UK construction labour force lags behind other countries in terms of:

• Skills; • Salaries; • working conditions; • Job motivation.


• The report also claims that UK workers loose around 19% of their working capacity through late starts and early finishes.

• compared to 5% in America • and 3% in Sweden and

Germany.


• Q-visit BSRIA site and investigate if the trend has changed in 2009.

• The reasons given by BSRIA for productivity decline in early 2000 were:


• Many UK sub-contractors do not organise and execute their work in a productive way.

• mechanical/electrical (M&E) installation work that was monitored was characterised by numerous levels of sub-contractors.


• There was a loss of 12% as a result of poor management.

• storage of materials on site very poor.

• Handling of materials were found to cause delay on all of the UK projects monitored.


• On the more than 90 UK sites monitored, workers were found to have received no post-qualification training.

• The average level of productivity in the UK projects monitored was only 56%.

• Compared with the best-achieved productivity figures (benchmark).


• Site workers in the UK were engaged in too much office administration

• Above average inappropriate design and specification.

• As a result, slowed down work.• Resulted in poor levels of house

keeping.


• time wastage was identified at all levels of the construction process;

• from contract strategy;• Procurement;• project organisation;• services design;• and in the whole philosophy of

construction.


• There are other factors, which may cause a decline in productivity;

these factors may arise from:• shortage of equipment • information• bad weather


• management style • wastage on site or at the head

office • lack of training • variations in the scope of work,• disruption on site.

Etc.

Repetitivework

Poor Lifecycle costing

LessPre-fabrication

andstandardization

Incorrectestimating

PoorCommunication

Lack ofinnovativemethods

Poor planning

Poor qualitymachinery

MAJOR REASONSFOR

PRODUCTIVITYDECLINE

Idlenesswithin theworkforce

Lack of:VEJITTQMQC

Poor safetymanagement/site safety

Wastage onsite

Wastage atthe head

office,

Repetitivework

Cost-Timeoverruns,

Poor qualityworkmanship

,

Lack of goodqualityproduct

No. of Claims,Disputes,

OrganizationalManagement

Box 2

SystemControlBox 3

Team WorkBox 4

Waste ControlManagement

Box 5

HighProductivity

ProjectPerformance

TIMECost

QualitySafety

Client/customerssatisfaction

JobSatisfactionRewards

Effort-Ability-commitment-worker's skill

ContractualRelationship

MANAGERIALTECHNOLOGICAL

SOCIAL

Not SignificantD18, D29, D32, D33,D36-D39% OF NOT SIGNIFICANT=8/ 55x100=14.50%

SignificantD1-D8, D9-D13, D14-D17,

D19-D21,D23-D25, D24, D27,

D31-D35% OF SIGNIFICANT

FACTORS=30/ 55x100=54.5%

D22% OF SIGNIFICANT

FACTORS=1.8%Other relevant factorsD40% OF SIGNIFICANT=1.8%

Significant42, 44-46, D48-D51,

D53-D54% OF SIGNIFICANT

FACTORS=18%Not significant

D43, D47, D52, D55% NOT

SIGNIFICANT=7.2%

Highproductivity

dr f dejahang (bsc ceng, bsc (hons) construction mgmt, msc, mciob, phd) 056 construction...

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