• Title/Summary/Keyword: Construction Industry Performance

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NON-VALUE ADDING ACTIVITIES IN SOUTH AFRICAN CONSTRUCTION: A RESEARCH AGENDA

  • Fidelis Emuze;John Smallwood
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.453-458
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    • 2011
  • The construction industry's importance to nation building, economic empowerment, and contributions to global commerce cannot be over emphasised. However, poor productivity, accidents, rework, time and cost overruns, and client dissatisfaction have characterised the industry performance in a multi-dimensional way. The central issue in this particular research is the seemingly inadequate achievement of optimum performance in the construction process, either with respect to value for money for the client and the entire construction supply chain or value in terms of the utility derived from built assets in spite of efforts by government and governmental bodies such as the Construction Industry Development Board (cidb) to increase industry performance. Therefore, based upon an extensive review of related literature, the paper reports on effects and causes of non-value adding activities in the construction industry in general, and South African construction in particular. The research findings indicate that activities that can be referred to as non-value activities are not only prevalent, but they can also be held responsible for performance related issues in terms of cost, time, quality and health and safety (H&S) in construction; and the exploration of pluralism in the research methodology may result in a robust model based upon the system dynamics approach. Therefore, the study suggests that there is major scope for value optimisation in the construction process especially in terms of availability and implementation of interventions, which have not only proven successful in other industries, but are also adaptable in the construction industry context.

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Investigating the Construction Industry from Key Performance Measurements

  • Choi, Kunhee;Lee, Hyun Woo;Bae, Junseo;Ryu, Kyeong Rok
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.150-153
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    • 2015
  • The construction industry is an integral part of any nation's economy, whether measured by dollar volume or workforce size. In spite of its strong influence, there has been very little specifically aimed at evaluating the current industry performance. This research investigates the macroeconomic performance of the construction industry by accounting for crucial performance affecting factors such as labor productivity and gross margin. A clustering analysis, followed by a series of statistical analyses, yielded a notable finding that labor productivity is the most important factor that affects industry's profitability. The results of the analysis also revealed that the states with the strongest labor productivity show the highest level of profitability in terms of gross margin. This study should be of value to decision-makers when plotting a roadmap for future growth and rendering a strategic business decision.

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10-10 Project Campaign: 10 Input Measures Influencing Project Outcomes

  • Choi, Jiyong;Kang, Youngcheol;Yun, Sungmin;Mulva, Stephen;Oliveira, Daniel
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.200-204
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    • 2015
  • This paper presents 10 input measures influencing project outcomes. Construction Industry Institute (CII), a consortium of more than 130 project owner and contractor companies, has collected project-level data for over 20 years. Recently, CII has developed a new system measuring project-level performance and factors presumably influencing project performance. The system, called 10-10, collects data for 10 input and 10 output measures for capital projects. The input measures include planning, organizing, leading, controlling, design efficiency, human resources, quality, sustainability, supply chain, and safety. This paper provides theoretical background for these measures. Although the input measures have been known to impact on project outcomes such as cost and schedule, there has been no study quantitatively evaluating how they are operated in the construction industry. This study contributes to revealing the current status of their uses, which will be helpful in establishing strategies improving construction project performance.

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Cost Normalization Procedure for Phase-Based Performance Measurement

  • Choi, Jiyong;Yun, Sungmin;Oliveira, Daniel;Mulva, Stephen;Kang, Youngcheol
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.72-76
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    • 2015
  • Capital project benchmarking requires an effective cost normalization process to compare cost performance of projects accomplished in different time and location. Existing cost normalization approaches have been established based on the assumption that all required information for cost normalization is fully identified once a project is completed. Cost normalization, however, is sometimes required to evaluate phase-level outcomes of an ongoing project where the required information is not fully available. This paper aims to provide a cost normalization procedure for phase-based performance assessment. The procedure consists of three normalization steps: currency conversion, location adjustment, and time adjustment considering various scenarios where the required information is not fully identified. This paper also presents how the cost normalization procedure has been applied to the 10-10 Performance Assessment Program, which is a phase-based performance assessment system developed by the Construction Industry Institute (CII). Both researchers and industrial professionals can apply the cost normalization procedure to studies and practices regarding to cost estimation, feasibility analysis, and performance assessment.

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Performance Analysis Framework for Post-Evaluation of Construction Projects through Benchmarking from Advanced Countries (선진국 사례 벤치마킹을 통한 건설공사 사후평가 성과분석 체계 개발)

  • Lee, Kang-Wook
    • Journal of the Korean Society of Industry Convergence
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    • v.25 no.6_2
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    • pp.1017-1027
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    • 2022
  • Development of social overhead capital (SOC) requires huge national finance, and performance issues such as cost-efficiency, safety, and environment have been constantly raised. However, currently each construction client has limited access to its own projects' performance without analytic methodology for industry-level comparisons and benchmarking for improvement. To overcome this problem, this study proposes a comprehensive performance analysis framework for post-evaluation of large-scale construction projects. To this end, this study performed a case study of advanced countries (the U.S., the U.K. and Japan) and consultation with related experts to develop a tailored performance analysis framework for the Post- Construction Evaluation and Management system in Korea. The developed framework covers three categories (project performance, project efficiency, and ripple effect), nine areas (cost, schedule, change, safety, quality, demand, benefit-cost ratio, civil complaint, and defect), and 31 detailed metrics. Using industry-level project performance database and statistical techniques, the proposed framework can be used not only to diagnose excellent and unsatisfactory performance areas for completed construction projects, but also to provide reference data for future similar projects. This study can contribute to the improvement of clients' performance management practices and effectiveness of construction projects.

SUCCESS STORY OF THE SHIPBUILDING AND REPAIR INDUSTRY IN ACHIEVING EXCELLENT SAFETY PERFORMANCE: A LESSON FOR THE CONSTRUCTION INDUSTRY

  • Evelyn A.L. Teo;G. Ofori;Kelvin Y.N. Ng
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.896-906
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    • 2009
  • In Singapore, the construction industry's performance in safety has often been the worst among the other industries. This paper seeks to compare the efforts of the shipbuilding and repair industry and the construction industry in improving the level of safety performance. One key factor identified in the paper will be the subcontractors' role in the safety aspect. Based on the analysis of statistic carried out by the Ministry of Manpower of Singapore and many others, this paper aims to identify the success of the shipbuilding and repair industry and gives thought as to how the construction industry can further improve its safety record.

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Deductions of KPIs for BSC and Process KPIs for BPM in Railway Construction (철도건설에서 BSC의 KPI도출과 BPM을 위한 프로세스 KPI도출)

  • Ryu Si-Wook;Ahn Byung-Jun;Ryu Myung-Wook
    • Journal of the Korean Society for Railway
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    • v.9 no.4 s.35
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    • pp.388-393
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    • 2006
  • Recently, Korean government demands that public sectors like railway construction should improve their management efficiency. It is necessary for railway construction supported by government budget to aim at the companywide management efficiency. The Balanced Scorecard (BSC) is known as integrated performance management framework that helps a company to translate strategic objective info relevant performance within an organization. This paper focuses on relationship between KPIs (Key Performance Indicators) used to measure the performance of railway construction industry and process KPT for BPM (Business Process Management). Also, the vision and strategies of the railway construction is introduced, and the CSFs (Critical Success Factors) and the KPI based on BSC is developed. Finally, this paper explores that there is a possibility to fulfill the strategic objectives of railway construction industry through the connectivity between KPI based on BSC and process KPI based on BPM. We explain the detailed procedures with an example of railway construction industry.

Non-Value Adding Activities in South African Construction: A Research Agenda

  • Emuze, Fidelis;Smallwood, John
    • Journal of Construction Engineering and Project Management
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    • v.1 no.3
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    • pp.38-44
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    • 2011
  • The central issue in this particular research is the seemingly inadequate achievement of optimum performance in the construction process, either with respect to value for money for the client and the entire construction supply chain or value in terms of the utility derived from built assets in spite of efforts by government and governmental bodies such as the Construction Industry Development Board (cidb) to increase industry performance. Therefore, based upon an extensive review of related literature, the paper reports on effects and causes of non-value adding activities in the construction industry in general, and South African construction in particular. The research findings indicate that activities that can be referred to as non-value activities are not only prevalent, but they can also be held responsible for performance related issues in terms of cost, time, quality and health and safety (H&S) in construction; and the exploration of pluralism in the research methodology may result in a robust model based upon the system dynamics approach.

A Study on the Reformation Proposal of Post-Evaluation Indicator for Performance Measurement in the Public Construction (공공공사 성과측정을 위한 사후평가항목 개선방안에 관한 연구)

  • Lee, Eun-Ji;Kim, Kyung-Hwan;Lee, Yoon-Sun;Kim, Jae-Jun
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.523-526
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    • 2007
  • In Korea, the construction industry has been growing quantitatively because of its aggressive advances into overseas construction market and the Korean government's housing policy. Moreover, visions and goals such as 'construction industry promotion build up plan' have recently been promoted by the government while new strategic growth focused on competitiveness is gaining interests among the industry. However, there are a few problems in the construction performance. First, the specific performance measurement indicator or skills for the construction industry are hardly found in Korea. Currently, the finance or overall management system in the construction business are used as indicators to measure performances in not only the construction industry but all industries including the manufacturing industry. The government, the industry and universities recognized the need for the performance measurement indicator and skill and have developed and actively studied on them.

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SELECTING OPTIMUM MANAGEMENT PRACTICES IN PRE-CONSTRUCTION PHASE CONSIDERING PROJECT CHARACTERISTICS

  • Hee-Sung Cha;Ki-Hyun Kim;Young-Jin Ko
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.609-613
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    • 2011
  • The importance of project performance management as an alternative for solving problems is rising, which are followed by the difficulties of managing construction project in the construction industry. This research classifies and applies the potential improvement made by the construction practitioners. In order to apply influential factors for success on the construction project, the research identifies the relationship between the factors and performance management practices. In addition, in order to predict the results reflecting the project characteristics which are un-improvable by the construction managers in the initial stage of construction, the effect of project characteristics to the identified management practices have been drawn by performance area. Finally, in order to improve the predicted performance, this research provides a framework in setting valid best practices according to the performance areas through a statistical analysis between the best practices and project characteristics through the industry survey.

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