Benchmarking and Productivity

1. BENCHMARKINGBENCHMARKING
ANDAND
PRODUCTIVITYPRODUCTIVITY
helpdesk@construction-productivity.co.uk
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The idea of Benchmarking process:
to compare the activity of one
company with activities of the best of
other companies.
Within the UK industry BenchmarkingBenchmarking
has been identified as:has been identified as:
a powerful tool for assistinga powerful tool for assisting
managers to improve efficiency withinmanagers to improve efficiency within
the industry.the industry.

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Organisation specific benchmarks are developed
during:
 the benchmarking process;
 the analysis phase.
 Benchmarking has proved to be a flexible toolBenchmarking has proved to be a flexible tool
used to support other strategies.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.

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IMPROVING BUSINESS RESULT
THROUGH
BENCHMARKING
The term benchmarking includes aThe term benchmarking includes a
number of different activities builtnumber of different activities built
around a single, simple and powerfularound a single, simple and powerful
idea.idea.
benchmarking is a continuing
process;
opens the organisation to new and
radical ideas;

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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:

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Competitive benchmarking
is the benchmarking applied
to one’s performance
against competitors;
measures of project
excellence and
effectiveness.

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 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.

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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

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Steps to take in Benchmarking can
be
Described as:
 ConsiderActivities with low Key
Performance Indicators( KPIs);
 Considera process model first;
 Considerwhat to benchmarkfrom the
process model first, second, and so on;
 Define the measures;
 Develop data collection methodology;
 Collect data;

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 Identify deficiencies in the use of best
practices and project management
performance.
 Identify reasons fordeficiencies (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.
 Monitorprogress

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 Monitorfactors such as:
 cost
 time
 waste
 safety
 client satisfaction
 and also many othercritical

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28. Step 1-pull information from bill of quantity

29. Step 2-carry out calculations-use

30. COST CONTROL-AOA

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 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).

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 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,

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 COST OF MATERIALS
31.14
5% WASTE ALLOWED
6.50% WASTE
EXPERIENCED
31.14(6.50-
5)=31.14X1.50=£46.71
46.71X156=7286.76
THE ESTIMATED
COST FOR THIS
ITEM=
7286.76-46.71=7240.05
Total MD
=Cost
of
material
Waste Waste
Quanti
ty
(TQ)
Deliver
ed to
site
(Estima
te)
(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%