FYP, Integration Of PPMS And Design Software Tool By Quantity Surveyor

1. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
www.kpizone.com
CCI – Centre for Construction Innovation
KPIzone was developed to help contractors measure their performance in a consistent way, to
demonstrate their improvements in time, cost and quality and to understand how their performance
compared to their peers.
About KPIzone & the KPI Engine
Rethinking Construction
The Construction Industry KPIs emerged from Sir John Egan's (1998) 'Rethinking Construction'
Report. The Construction Industry as a whole was in a poor state, with projects consistently failing to
meet client expectations, being delivered late and over-budget. Egan identified a number of drivers for
change, including better client leadership, supply chain integration and investment in the workforce.
He set a number of ambitious targets against which this improvement should be measured, which we
still recognise today as 'headline' performance indicators, such as time and cost predictability.
Constructing Excellence's KPIzone
As Constructing Excellence set about to promote the Rethinking Construction agenda, KPIzone was
developed to help contractors measure their performance in a consistent way, to demonstrate their
improvements in time, cost and quality and to understand how their performance compared to their
peers.
CCI's KPI Engine
CCI set out to achieve similar goals with the KPI Engine. However,
the KPI Engine has developed further to meet needs that have emerged over the past decade, such
as clients' desire to measure contractors' performance, to compare performance of contractors and
consultants on framework agreements and to drive continuous improvement within best practice
benchmarking clubs.

2. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
Where do the KPI come from?
As you will see from the 'About' page, the Construction Industry KPI originate in work originally
undertaken by Sir John Egan and the Movement for Innovation some ten years ago to measure the
state of the industry and monitor its improvement.
They have been defined by industry leaders so that, by using these agreed definitions and methods of
measurement, anyone can compare their project or company performance with the industry as a
whole.
Where does the KPI benchmark data come from?
The benchmark data is collected by Glenigan and Constructing Excellence under contract to BIS. It is
drawn from a number of sources, including a random sample of Construction projects across the UK.
You can rest assured that benchmark data is a representative sample of data drawn from
constructors, consultants and clients.
What is a benchmark score?
The KPIzone and the KPI Engine are benchmarking tools.
They take your KPI score (such as a Client Satisfaction score of 8 out of 10) and compare it to the
benchmark data to generate a benchmark score, such as 62%. This would mean you are performing
better than or equal to 62% of projects/companies. For this to be accurate, you must make sure your
KPI measurements are in line with the definitions and methodologies provided within the Zone or the
Engine.
What are the KPI?
Over the years, the number of KPI has grown considerably. onstruction'. There are also subsets, or
suites, of this data, reflecting, for example, New Build Housing, New Build Non-Housing, Respect for
People, Environmental measures and so on. All the suites can be viewed by clicking on the Login
page and using the Login demo and the password demo. Also, if you click on any of these suites,
you will be shown an example of how the definitions, methods of measurement and data are
presented.

3. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
The CCI/Constructing Excellence on-line Benchmarking Tool allows you to benchmark your company
and project performance against the latest official Construction Industry National Benchmark Data.
The 2011 data was collected and compiled by Constructing Excellence and Glenigan on behalf of
BIS (Department for Business, Innovation and Skills) from thousands of completed projects by
construction clients, contractors, consultants and M&E specialists.

4. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
Guide to Implementing Performance Measurement Systems
Introduction
Performance measurement drives continuous improvement. It can
 Focus improvement: identify areas of poor performance and help focus improvement in those
areas.
 Share best practice: identify areas of great performance which should be shared throughout
your business.
 Win work: benchmark your performance & evidence your competencies to help you win work.
 Drive innovation: demonstrate you have a performance measurement system with the power to
generate innovation
But when you are new to measurement, it can be hard to know whether the scores you are achieving
are any good or not. How do you compare to the rest of the industry or your direct competitors?
Benchmarking
Using KPIzone and the KPI Engine you have comprehensive tools by which to measure yourself over
time and against competitiors. KPIzone provides unlimited access to the complete suite of KPI, SPI &
API and can benchmark yourself on each and every one. By using the KPI Engine, you can easily
benchmark your business against the national average, and projects against each other or the
national dataset. Benchmarking provides a 'yardstick' by which to judge your performance. The KPI
Engine provides comprehensive support for collecting, reporting and analysing data. It is a web-based
tool that can be accessed from any web-enabled location without the need for software to be installed.
The KPI Engine allows you to;
 Identify your own suite of KPIs from over 580 different measures
 Include bespoke KPIs
 Report KPI scores easily in tables, graphs and action plans
 Allows you to benchmark projects and the company against a range of data sets.
Here are 7 Steps of Performance Measurement shown below: 1. Decide what to measure, 2. Collect
data, 3. Calculate KPIs, 4. Report the Results, 5. Analyse the Results, 6. Take Action and 7. Measure
Again. Follow the quick links to the right for more information and comments from our clients.

5. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
KPI ENGINE
Step 1: Decide what to measure
The first hurdle a company must face is to decide exactly what to measure. There are many KPIs
available and so you must be guided by your own company goals and project goals – your critical
success factors – to ensure that the right KPIs are chosen in the first place.
Examples of Critical Success Factors:
 For companies facing a recruitment crisis, for example, a critical success factor could be staff retention
(pengekalan / pembendungan);
 On some projects a client can afford to go over-budget; the critical success factor here could be value
for money.
 At other times, it could be critical that the project is on-cost: the client may have budget constraints or
the nature of the contract may mean that no extra money is available for the project
Choosing Key Performance Indicators:
 If staff retention is critical to the business, measure and monitor Employee Satisfaction!
 If the client demands VFM, measure Client Satisfaction!
 If a project must be delivered on cost, monitor Cost Predictability!
Other rules of thumb:
 Select a suite of 8 to12 KPIs - any more than that and data collection and processing can be arduous
and taking action, following benchmarking, can be a mammoth exercise.
 Do not duplicate information flows that are already established and functioning well.
 If you have not tried performance measurement before, select a mixture of company and project KPIs
covering the three aspects of sustainability – economic success, social improvement and environmental
performance. That is, unless you have a very high priority area that means you need to specialise in a
particular area of performance measurement (e.g. environmental performance)
Client commendation;
Peter Schofield, Programme Manager, North East Improvement and Efficiency Partnership, “In my
experience, picking KPIs is really difficult. And it is even worse if you’ve got a number of organisations
round a table trying to agree a common set of measures. Because we’re working in the public sector,
our KPIs need to reflect government priorities – in our case, sustainability and efficiency.”
Step 2 : Collect Data
Most of the data you will need already exists within your company and much of that will be found in
management accounts or project reports. However, where data needs to be collected, ensure you
have clear roles and responsibilities and consistent methods. For each KPI, designate who is going to
collect the data, when it is going to be collected (and in what form) and identify to whom the
information gathered should be sent. Train people, if necessary, to ensure that they can do what you
are asking of them and so that they know why they are doing it.

6. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
In some organisations, especially smaller businesses, performance measurement becomes the job of
one person (who is typically also responsible for H&S and, maybe, ISO 14001, but not at Director
level). It is very challenging for people in that role to collect data from other members of staff. Others
need to be informed what they will be asked for and what will happen to the data they provide - it is
important that they get feedback on the results so that they understand the process and feel part of it.
High level company buy-in to the process is essential to encourage and lead the process.
Client commendation
Joanne James, Director of PLP Construction, “Getting performance measurement off the ground is
really difficult. Whilst people within the company can think it’s a good idea, it needs someone with
clout to take ownership of it and make sure all the people who need to be involved actually do their
bit. This starts with getting everyone to agree which KPI should be used, includes ensuring that
people are made to collect the data and, most importantly, getting the Board or Management Team to
review the data regularly and take action accordingly.”
Step 3 : Calculate Performance
Industry-standard KPI
Use standard approaches where possible. By using industry-standard approaches, your KPIs will be
measured, calculated and collated consistently over time and the results will be comparable with the
national data set. It is also far easier than developing your own KPI definitions and methods of
calculation!
KPIzone
The full suite of industry-standard KPI can be viewed in the KPIzone section of this website. Different
suites are available for Consultants, M&E Contractors and Product Manufacturers. There is a
headline economic suite with separate subsets of the data for New Build Housing, New Build Non-
Housing, R&M and R Housing, R&M and R Non-Housing, Repairs – Housing, Voids Housing and
Infrastructure. A suite of 'social' KPIs called, 'Respect for People' measures organisational elements
such as Health & Safety and Equality & Diversity. The Environmental suite measures KPI such as
Mains Water Use, Waste and Impact on Environment.
All Key (KPI), Secondary (SPI) and Additional (API) Performance Indicators can be accessed in the
KPIzone. Each Performance Indicator includes a definition, description, method of measurement and
in many cases, a calculator. There is also a graph showing the standard distribution of the national
benchmark data. The calculator will benchmark your KPI score against the national dataset for you.
A licence for KPIzone costs £250 + VAT. Once your payment has been received, either online or by
invoice, your unique User ID and Login will be emailed to you immediately.

7. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
The KPI Engine
The KPI Engine has been developed over 6 years to help us support our partners in collecting,
reporting and analysing data. It is a web-based tool that can be accessed from any web-enabled
location without the need for software to be installed. The KPI Engine allows you to:
 Identify your own suite of KPIs from over 580 different measures
 Support the inclusion of bespoke KPIs
 Report project and organisational scores benchmarked against the national average
 Compare between projects
The KPI Engine can be accessed from the tab above. Using the Login ID and password "demo", you
can update and report against the 10 headline KPIs for a single project. Instructions can be
downloaded from the 'Documents' section of this website.
Client commendation
Andy Ward, Technical Director of Mansell Build, “At Mansell, we've found when you're doing
performance measurement, you want to be able to see quickly and easily whether you’re getting
better, getting worse and how you’re doing compared to your rivals. The KPI Engine enables you to
do just that.”
Step 4 : Report the Results
If you subscribe to the KPI Engine, you can easily create diagrams and charts to help present your
KPI results. But whether you use the KPI Engine or not, your performance should be shown in such a
way that everyone, including the company accountant and the operational staff, know what is
important. Furthermore, it should be communicated throughout the company, but, in the first instance,
to those managers who can react accordingly and those people involved in data collection and
processing. Highlight anomalies in the data – good performance, bad performance and rogue results.
Share data with the people who collected it and the people that it affects.
You can download an example of a KPI report from the 'Documents' section of this website. It
provides great guidance in writing your own reports. But remember, the results must be reported to all
the relevant people.
Client commendation
Mohammed Ahmad, Senior Project Manager, Liverpool Vision, “CCI provided the performance
measurement services for Liverpool Vision, recently voted Constructing Excellence National Client of
the Year 2008, on the their projects. The KPI reports were used to improve on the ethos of the
partnership of the framework agreements between Client and contractors. It was important to have an
independent third party to collect the data, crunch the numbers and report them back clearly. CCI
provided the required tool.

8. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
Step 5 : Analyse the Results
What is going well (and should be shared around the company)? What's not going well (and needs
remedial action)? Understanding your performance indicators is essential to having meaningful data.
In the same way that your sales forecast can look great, but if it all hangs off one massive contract,
your future is precarious and someone needs to have a handle on the truth behind the data. If your
performance is relatively poor, is it because of something beyond your control or because there is
something you should to be doing better? It may be that you need someone, or a group of people, to
investigate what the results mean. This is the basis of continuous improvement.
Sometimes, the analysis is undertaken by a Director or a Manager responsible for Continuous
Improvement, Performance Measurement or Innovation. Other times, analysis is undertaken by the
management team.
Client commendation
Rob Lomax, Managing Director of Brookes Roofing Ltd, “At Brookes we have been measuring our
performance via KPI’s for around four years. Initially the information was very much a bolt-on to our
management meetings and was not really valued. This was primarily because we were reporting on
too many KPI’s and were measuring the wrong things. Following a management meeting where we
listed every possible thing that we could measure (in excess of sixty) we selected ten that would give
the best idea on how the company was performing. We then collated everyone’s top ten to form the
ten KPI’s which we measure our business on during our monthly meetings. Since carrying out this
exercise the information is valued and has helped indicate where we are having problems in the
business.”
Step 6 : Take action!
Take action: Generate value
This is where the value is generated!
Act upon your KPI data
Once you understand why your KPI results are good or bad you need to do something about it.
Monthly management meetings are a good place to review the results, establish actions and start
implementing them. Certainly someone, such as a KPI Champion, needs to take ownership of the
process.
Share good practice
Where performance is really good this should be celebrated in newsletters and presentations. Better
still, the knowledge of how to achieve this „best practice‟ should be shared about the company.
Mentoring and staff exchange are a good way to achieve this. It is a wasted opportunity if you take-
for-granted that you do something well – it should be publicised inside and outside of the company
and you should make sure that everyone knows how to do it.

9. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
Remedy poor performance
Where performance is falling below expectations, problem areas should be remedied. If you‟re
struggling to do that, CCI have experience in facilitating workshops, particularly within supply chains,
to iron-out problems. Click here for more info.
Client commendation
Managing Director of Birse Coastal, Phil Wright, “Measuring our performance has helped us to
understand which parts of a project are doing better than others. The measures give a quantifiable
way of benchmarking ourselves, which helps us to focus on getting everything up to the standard we
want.”

10. Nur Fatini Abdul Ghani – 2010647098 24/10/2011 1:31 AM
Step 7 : Measure again
Continuous improvement
The elite of clients and contractors are engaged in continuous improvement. This means that they do
not just measure once, they measure repeatedly and regularly, either monthly, quarterly or at the end
of every project. In fact, the true elite link KPI scores to profit so their contractors are rewarded for
their performance and continued improvement. KPI scores are also used to monitor framework
agreements. Even if you simply want to get a better handle on your company or your supply chain,
you need to keep measuring to know whether you have been successful in sharing good practice and
improving on your own weaknesses.
Client commendation
Deputy Managing Director, Anthony Dillon of Willmott Dixon, “Constantly measuring our projects
means that we can continuously improve and demonstrate this to our clients.”