2. BENCHMARKING AND
PRODUCTIVITY
The successful application and
limitations of benchmarking helps
the industrial nation’s growth in
mass production.
The International competition is becoming more
intense amongst the major Companies.
Major companies are becoming more
competitive by improving their performance.
3. BENCHMARKING AND
PRODUCTIVITY
This is only possible by improving
the level of productivity by
carrying out Benchmarking.
The manufacturing industry has been
the source of innovations in many
areas.
This has improved their mass
production.
6. BENCHMARKING AND
PRODUCTIVITY
BENCHMARKING
AND
PRODUCTIVITY
• It was formed to make
comparisons with competitors or
other units in the same group.
BENCHMARKING
AND
PRODUCTIVITY
• Investment in new technology
and machinery to improve the
level of productivity.
7. BENCHMARKING AND
PRODUCTIVITY
The objectives
of introducing
benchmarks are
as follow:
to establish a
benchmark for
productivity;
quality
assessment;
comparison
between one
firm and
another.
8. BENCHMARKING AND
PRODUCTIVITY
the benchmarks for
simple tasks are
relatively easy;
It’s use would enable managers
dealing with the progress of a project
to establish trends of performance.
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 Benchmarking
has been identified as:
a powerful tool for assisting
managers to improve efficiency within
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 tool
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 a
number of different activities built
around a single, simple and powerful
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:
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:
Consider Activities with low Key
Performance Indicators( KPIs);
Consider a process model first;
Consider what to benchmark from 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 for deficiencies (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.
Monitor progress
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,
33. BENCHMARKING AND
PRODUCTIVITY
Productivity measurement table-related to case no.1
CRAFT/LABOUR
PRODUCTIVITY
CASE NO.1
POOR
Total MD
=Cost
of
material
Waste Waste Craft
Optve
Craft
Optve
Labour Labo
ur
Productivity Loss or
Gain £
Total
loss/G
ain
=PR x
TQ
Unit
3x3 Bed House-
2 Story level
Quanti
ty
(TQ)
Deliver
ed to
site
(Estima
te)
(Actual
)
Hrs Hrs Hrs Hrs- PR=MD[A-
X]+HC(EC-AC)
+HL(EL-AL)
LOSS £
Description-
Activities
(Act-) % % (EC) (AC) (EL) (AL)
SUPERSTRUC
TURE
Facing Brick
P.C £350 PER
1000 /Common
Block
156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2
Common
Brick/Block
264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2
Internal Walls-
LWC Block
282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2
Internal Walls-
Plastering-
13mm thick
708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2
Internal Finish-
Ceiling finish-
set
504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x (-0.02) 4 M2
Wall Tiling-
152x152
75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x (-0.02) 22 M2
Net
Rate
Gross Total Total Total Total Total
Time
Total
Time
Total
Cost
Total
Cost
Total
Time
Total
Time
Total
Cost
Total
Cost
Unit
(£) Rate Quan
t-
Quan
t-
Cost Cost Est- Est- Est- Est- Act.- Act.- Act- Act-
(Est-) (Act-) (Est-) (Act-) Craft Labo
ur
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)
64.5
5
72.94 160 - 1167
0
- 464 688 3257.3 3969.7
5
- - - - M2
57.2
9
64.73 130 - 8414.
9
- 63.75 315.9 447.15 1822.7
5
- - - - M2
40.8
1
46.12 225 - 1037
7
- 506.2
5
393.7
5
3553.9 2271.9
5
- - - - M2
35.2
4
39.82 410 1632
6
- 922.5 451 6475.9
5
2602.2
5
- - - - M2
13.9
1
15.98 440 - 7031.
2
- 638 484 4478.7
5
2792.7 - - - - M2
5.04 5.69 1125 - 6401.
3
506.2
5
258.7
5
3553.9 1492.9
5
- - - - M2
3.99 4.5 785 - 3532.
5
196.2
5
102 1377.7 588.55 - - - - M2
26.8
8
30.37 90 - 2733.
3
- 90 54 631.8 311.6 - - - - M2
Net
Rate
Gross Total Total Total Total Total
Time
Total
Time
Total
Cost
Total
Cost
Total
Time
Total
Time
Total
Cost
Total
Cost
Unit
(£) Rate Quan
tity
Quan
tity
Cost Cost (Est-) (Est-) (Est-) (Est-) (Act.-
)
(Act.-) (Act-) (Act-)
(Est-) (Act-) (Est-) (Act-) Craft Labo
ur
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)
64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2
Productivity measurement table-related to case no.1
CRAFT/LABOUR
PRODUCTIVITY
CASE NO.1
POOR
Total MD
=Cost
of
material
Waste Waste Craft
Optve
Craft
Optve
Labour Labo
ur
Productivity Loss or
Gain £
Total
loss/G
ain
=PR x
TQ
Unit
3x3 Bed House-
2 Story level
Quanti
ty
(TQ)
Deliver
ed to
site
(Estima
te)
(Actual
)
Hrs Hrs Hrs Hrs- PR=MD[A-
X]+HC(EC-AC)
+HL(EL-AL)
LOSS £
Description-
Activities
(Act-) % % (EC) (AC) (EL) (AL)
SUPERSTRUC
TURE
Facing Brick
P.C £350 PER
1000 /Common
Block
156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2
Common
Brick/Block
264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2
Internal Walls-
LWC Block
282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2
Internal Walls-
Plastering-
13mm thick
708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2
Internal Finish-
Ceiling finish-
set
504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x (-0.02) 4 M2
Wall Tiling-
152x152
75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x (-0.02) 22 M2
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%