055 KPI'S Success Factor

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SUCCESSSUCCESS
FACTORSFACTORS
(KPI’S)(KPI’S)

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

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.

 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.

 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).

 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.

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

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

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

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)

 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

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.

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:

%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

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.

 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

 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.

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.

 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.

 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.

 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.

Accident rate = (Total no. of
construction site accidents
/Total no. of workers
employed on a specific
project) x1000

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.

 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.

 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.

 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.

 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

 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.

 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

 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.

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.

 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.

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

 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.

 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:

 commitments
 schedules
 A high level of team work and corporation
that can source, produce, and deliver
products with minimal lead-time and
expense.

 Functionality
 User expectation and satisfaction
 Participants’ satisfaction

055 KPI'S Success Factor

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