Presentation on theme: "CONSTRUCTION PRODUCTIVITY-PART 2"— Presentation transcript:
1CONSTRUCTION PRODUCTIVITY-PART 2 056CONSTRUCTION PRODUCTIVITY-PART 2Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD)
2CONSTRUCTION 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.
3CONSTUCTION 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.
5PRODUCTIVITY MODEL site/project manager Characteristics management Factorsresource Managementmanagement Systemslabour Characteristicswaste on sitedelay and disruptionmotivating Factorshygiene Factors
6CONSTRUCTION PRODUCTIVITY The role of project manger:Mobilising resourcesRemove 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.
7CONSTUCTION PRODUCTIVITY 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;
8CONSTUCTION PRODUCTIVITY 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.
9CONSTUCTION PRODUCTIVITY 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.
10CONSTUCTION PRODUCTIVITY 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.
11CONSTUCTION PRODUCTIVITY 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)
12CONSTUCTION PRODUCTIVITY 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.
13CONSTUCTION PRODUCTIVITY Table1.01 shows comparative labour productivity between years 1998 to 2008.US Gulf CoastGermany Continental Europe The NetherlandUKFrance
14CONSTUCTION PRODUCTIVITY In his report Mark Gibson compared the productivity level amongst several European countries.With USA construction contractorsHis investigation showed that UK productivity has improved compared to earlier reports.
15CONSTUCTION PRODUCTIVITY 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.
16CONSTUCTION PRODUCTIVITY 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.
17CONSTUCTION PRODUCTIVITY The world economic forum 2009 ranks Britain 76th out of 134 nations on productivity/efficiency of public sector.UK is behind countries such as:GreeceEthiopiaMozambique.
18CONSTUCTION PRODUCTIVITY 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.
19CONSTUCTION PRODUCTIVITY There are five basic resources usedto produce goods. These are:CapitalLandMaterialsPlant/ MachineryManpower
20CONSTUCTION PRODUCTIVITY Use of high quality managementtechniques such as;PlanningSchedulingmoney invested in the project
21CONSTUCTION PRODUCTIVITY Including:improved Communicationefficient use of labourefficient use of material and equipmentUse other methods of constructionproductivity improvement such as:Lean construction;
22CONSTUCTION PRODUCTIVITY Last planner system;JIT & Quality Management Systems;Construction Productivity-Logistics;Productivity Improvement;ISO 9000, ISO 9001, ISO1400;Quality Assurance.
23CONSTUCTION PRODUCTIVITY 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.
24CONSTUCTION PRODUCTIVITY Their recommendation suggestedthat issues such as:Value Engineering (VE)Life cycle costingPre-fabricationStandardisationWhich will improve the level ofproductivity.
25CONSTUCTION PRODUCTIVITY Group II recommended thepromotion of other techniquesnot commonly used in the UK.This included:Total quality managementTotal quality control and bench- marking
26CONSTUCTION PRODUCTIVITY 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.
27CONSTUCTION PRODUCTIVITY 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.
28CONSTUCTION PRODUCTIVITY 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.
29CONSTUCTION PRODUCTIVITY 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.
30CONSTUCTION PRODUCTIVITY 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.
31CONSTUCTION PRODUCTIVITY 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.
32CONSTUCTION PRODUCTIVITY 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.
33CONSTUCTION PRODUCTIVITY The report also claims that UK workers loose around 19% of their working capacity through late starts and early finishes.compared to 5% in Americaand 3% in Sweden and Germany.
34CONSTUCTION PRODUCTIVITY 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:
35CONSTUCTION PRODUCTIVITY 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.
36CONSTUCTION PRODUCTIVITY 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.
37CONSTUCTION PRODUCTIVITY 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).
38CONSTUCTION PRODUCTIVITY Site workers in the UK were engaged in too much office administrationAbove average inappropriate design and specification.As a result, slowed down work.Resulted in poor levels of house keeping.
39CONSTUCTION PRODUCTIVITY 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.
40CONSTUCTION PRODUCTIVITY There are other factors, which may cause a decline in productivity;these factors may arise from:shortage of equipmentinformationbad weather
41CONSTUCTION PRODUCTIVITY management stylewastage on site or at the head officelack of trainingvariations in the scope of work,disruption on site.