004 benchmarking and productivity
Download as PPT, PDF1 like89 views
The document discusses benchmarking and productivity in construction. It explains that benchmarking involves comparing a company's processes and performance metrics to industry best practices. Benchmarking is identified as a powerful tool for managers to improve efficiency within the industry. The document outlines various benchmarking methods and key steps, such as identifying deficiencies, determining best practices, developing action plans, and monitoring improvements in costs, timeliness and other factors. Overall, benchmarking is presented as a process for continuous improvement through comparative analysis against high-performing competitors and standards.
004 benchmarking and productivity
- 10. BENCHMARKING AND PRODUCTIVITY 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.
- 11. BENCHMARKING AND PRODUCTIVITY 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.
- 12. BENCHMARKING AND PRODUCTIVITY 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;
- 13. BENCHMARKING AND PRODUCTIVITY 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:
- 19. BENCHMARKING AND PRODUCTIVITY Competitive benchmarking is the benchmarking applied to one’s performance against competitors; measures of project excellence and effectiveness.
- 20. BENCHMARKING AND PRODUCTIVITY 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.
- 21. BENCHMARKING AND PRODUCTIVITY 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
- 22. BENCHMARKING AND PRODUCTIVITY 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;
- 23. BENCHMARKING AND PRODUCTIVITY 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
- 24. BENCHMARKING AND PRODUCTIVITY Monitorfactors such as: cost time waste safety client satisfaction and also many othercritical
- 28. Step 1-pull information from bill of quantity
- 29. Step 2-carry out calculations-use
- 30. COST CONTROL-AOA
- 31. BENCHMARKING AND PRODUCTIVITY 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).
- 32. BENCHMARKING AND PRODUCTIVITY 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,
- 34. BENCHMARKING AND PRODUCTIVITY 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%