Benchmarking Initiatives in the Construction Industry: Lessons Learned and Improvement Opportunities

Costa, Dayana Bastos; Formoso, Carlos Torres; Kagioglou, Mike; Alarcón, Luís F.; Caldas, Carlos H.

doi:10.1061/(asce)0742-597x(2006)22:4(158)

Cited by 110 publications

(92 citation statements)

References 11 publications

(5 reference statements)

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“…Over the past two decades, project benchmarking evolved into a strategic process to continuously improve performance outcomes for construction projects [22]. Many researchers have suggested effective measures to evaluate project performance [5][6][7]11,13,23,24]. The research focus is primarily on a performance index of cost, schedule, and quality as these are the traditional success factors in construction projects [5,7,22,[25][26][27][28]; however, safety performance is also included [7,9,13,19,29,30].…”

Section: Project Benchmarking In Constructionmentioning

confidence: 99%

“…In recent decades, benchmarking has enabled construction firms to create the competitiveness necessary to improve organizational performance [3][4][5][6][7][8][9][10][11][12][13][14]. Most benchmarking approaches use lagging indicators, which typically measure performance outcomes after project completion, to assess cost, schedule, changes, safety, and productivity, the traditional goals of project management.…”

Section: Introductionmentioning

confidence: 99%

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Benchmarking Sustainability Practices Use throughout Industrial Construction Project Delivery

Yun

Jung

2017

Sustainability

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Despite the efforts for sustainability studies in building and infrastructure construction, the sustainability issues in industrial construction remain understudied. Further, few studies evaluate sustainability and benchmark sustainability issues in industrial construction from a management perspective. This study presents a phase-based benchmarking framework for evaluating sustainability practices use focusing on industrial facilities project. Based on the framework, this study quantifies and assesses sustainability practices use, and further sorts the results by project phase and major project characteristics, including project type, project nature, and project delivery method. The results show that sustainability practices were implemented higher in the construction and startup phases relative to other phases, with a very broad range. An assessment by project type and project nature showed significant differences in sustainability practices use, but no significant difference in practices use by project delivery method. This study contributes to providing a benchmarking method for sustainability practices in industrial facilities projects at the project phase level. This study also discusses and provides an application of phase-based benchmarking for sustainability in industrial construction.

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Section: Project Benchmarking In Constructionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Benchmarking Sustainability Practices Use throughout Industrial Construction Project Delivery

Yun

Jung

2017

Sustainability

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“…However, current project management frameworks and tools do not comprehensively correspond to the characteristics of project networks (El-Sheikh and Pryke, 2010) or the multi-faceted substance of project success (Jugdev and Moller, 2006). As a result, the performance of the construction industry as a whole tends to be scarce (Costa et al, 2006). Thus, a holistic view of performance measurements in the realm of multifaceted construction projects has been highlighted recently (Dainty et al, 2003;Chan and Chan, 2004;Leung et al, 2004;NzekweExcel, 2012;Lehtiranta et al, 2012).…”

Section: Performance Measurement and Benchmarkingmentioning

confidence: 99%

Benchmarking construction industry, company and project performance by participants’ evaluation

Kärnä

Junnonen

2016

BIJ

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PurposeThe construction industry needs effective methods for gathering and utilizing performance information on industry, company and individual project levels. Such benchmarking (BM) information can be collected from project participants' bi-directional evaluations of each other's performance during construction projects. The purpose of this paper is to present the method and discuss the features of a multi-company project evaluation system as a BM tool. Also the accumulated results, based on the extensive BM database in the Finnish construction industry, are investigated. Design/methodology/approachThe web-based project evaluation tool was established in 2007 as a joint research project between the Helsinki University of Technology, construction organizations and main associations widely representing the construction industry in Finland. The evaluation method is based on soft, subjective measures, such as client satisfaction and project participants' satisfaction. The empirical observations of the study are based on over 5,500 evaluations during which the BM system was used in the Finnish construction industry. FindingsThe use of the evaluation is presented as a multi-level BM tool to evaluate the performance of different discipline groups on project, company and industry levels. The Finnish case shows an example of the industrylevel performance BMs of project consultants, main contractors, sub-contractors and architects/designers. The BM categories include project management, staff, collaboration and project goal accomplishment. According to the results, the participants are satisfied with each other's performance. However, main development targets in the Finnish industry are related to risk management and managing design. Also, the development of subcontractors' selection procedures will contribute to the performance of the industry. Practical implicationsClient satisfaction and project participants' satisfaction have been identified as one of the key factors affecting project success. With the help of mutual project evaluation, different BMs enable organizations to monitor their performance and to improve their operations in various areas. They also make it possible to position an organization's performance in comparison to the competitors and help to perceive black spots in the process on project level. As a common system for the parties in the industry, the project evaluation BM system promotes quality improvement, customer orientation and collaboration between participants. Originality/valueMulti-company project evaluation is a new and promising topic in performance measurement which holds potential for performance improvement through the utilization of network information and team dynamics. The study presents its wider utility as the basis of national, company and project BM.

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“…The Benchmarking & Metrics Programme (B&MP) of the Construction Industry Institute (CII) is another widely known construction PM initiative, aiming to provide the construction industry with a common set of metric definitions and performance norms and to illuminate and quantify the use and value of best practices (Costa et al 2006). B&MP reported a first performance data collection in 1996 and its current review includes a set of indicators classified in the categories of budgeted/actual costs, planned/actual schedule, facility capacity, project outcomes, accident data and project impact factors.…”

Section: Key Performance Indicators (Kpis)mentioning

confidence: 99%

“…This widespread dissatisfaction, climaxing in the late 1970s and early 1980s, has driven the construction industry to shift to modern methods of PM, with the use of process-oriented, leading measures, aiming to give early warnings and identify barriers and potential problems in the implementation of strategy and the attainment of goals and objectives (Costa et al 2006). …”

Section: Introductionmentioning

confidence: 99%

Assessment of Performance Measurement Frameworks Supporting the Implementation of Lean Construction

Hatzigeorgiou¹,

Manoliadis²

2017

25th Annual Conference of the International Group for Lean Construction

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Construction companies can perceive significant benefits of Lean Construction management, although cannot clearly identify the extent and origin of the obtained benefits. Frameworks, consisting structured tools suitable for business management, find wide application in the field of Performance Measurement, in most of the industries. The role of contemporary, process-oriented, Performance Measurement frameworks, like the European Foundation for Quality Management Excellence Model, the Balanced Scorecard and Key Performance Indicators, in supporting Lean Construction is examined in this study. The contribution of Performance Measurement Systems developed upon such frameworks, in the implementation of basic Lean Construction principles, like waste/variability reduction, operation simplification and benchmarking, is demonstrated by reviewing a number of related studies from the literature and identifying their basic characteristics regarding the adopted Performance Measurement frameworks and the involved Lean Construction principles. The presented studies indicate that the use of these frameworks, and especially Key Performance Indicators, can assist the application of specific Lean Construction principles, and most of all benchmarking.

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Benchmarking Initiatives in the Construction Industry: Lessons Learned and Improvement Opportunities

Cited by 110 publications

References 11 publications

Benchmarking Sustainability Practices Use throughout Industrial Construction Project Delivery

Benchmarking Sustainability Practices Use throughout Industrial Construction Project Delivery

Benchmarking construction industry, company and project performance by participants’ evaluation

Assessment of Performance Measurement Frameworks Supporting the Implementation of Lean Construction

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