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KPI in the Construction Project

17 replies [Last post]
Thu, 2010-02-04 08:37
Amreshwar Shukla
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What are the parameters to define major KPI in the construction project ? How many KPI should we have in a mixed use medium size construction project ? Owner want to link KPI with cost as well as man hours???


Thanks in advance

A.S.Shukla
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Replies

Sat, 2012-03-10 15:54
#1
The John
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Hi,

 Thanks very much for this comment. It help me to think about my ideals.

If you want to get more materials that related to this topic, you can visit: Construction KPIs

Best regards.

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Mon, 2012-03-05 13:57
#2
Mike Testro
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Hi The (Olivia Newton or Elton?)

Welcome to Planning Planet - even with a silly name.

It is not good to liven up long dead threads - If you have a point to make or a question to ask then start a new topic in the correct category.

Best regards

Mike Testro

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Mon, 2012-03-05 08:27
#3
The John
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Hi

I read some opinions in this topic. I do not agree above ideal. We can find out some articles at about.com by using Google search.

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Sat, 2010-03-06 12:40
#4
Samer Zawaydeh
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Dear A.S,

I found the following source with comprehensive information and actual process for measuring performance at site:

https://www.construction-institute.org/benchmarking/1_How_to_Benchmark_w...

I hope that this will be the complete and comprehensive answer to your question.

With kind regards,

Samer
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Sun, 2010-02-14 16:35
#5
Rafael Davila
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http://www.microsoft.com/dynamics/en/us/industries/construction-erp.aspx
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Sun, 2010-02-14 08:27
#6
Almas Ahmed
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KPI referred as Key Performance Indicators,are taken as Key Elements of the project which has a greater impact on the project progress and its completion as a whole.These items are so important that they may delay the Project if the execution/Installation of these items are delayed.

Generally KPI are referred to the Bulk materials which has a high value interms of price and runs through the lenght of the project, examples as explained by parvaz: Concrete, Block Works, Steel, Cables, Pipes, Sheet metal works.


hope this serves as solution.
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Sun, 2010-02-14 07:20
#7
Shahriar Parvaz
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Hi,
As I saw from my clients before I think what your client want is to showing him weekly (or daily) progress of key works , it can be concrete , rebar , form work , cable length , instrument installed , ...

format can be like this :

KPI item -------unit -------Week Planed -------week achived
Conceret -------m3 -------200 ----------------------180
rebar ----------ton ---------2.5------------------------2.2
cable pulling----m---------25000 ------------------24321
Inst. installed---PCS--------- 20 -------------------- 22
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Tue, 2010-02-09 03:57
#8
R. Catalan
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Dear Amreshwar,

Meticulous Clients wants their projects delivered efficiently on these three constraints, budget, time and quality. You add safety to the three, then you have something to start with as you KPIs.

Through meetings you should have a feel now what really the Client wants. It’s a good practice just to limit the KPIs in order not to stick his finger in all your works.

A sample for time indicator will be like:

Construction duration at project start = 24 months
Construction duration at current update = 24.5 months
Time predictability = (24.5-24)/24 = 2.1%

Best regards,
R. Catalan
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Sun, 2010-02-07 12:58
#9
Samer Zawaydeh
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Hi,

I think that you got a lot of good advice until now. You need to give us more description about your project in order to try to assist you more. Here is another answers to the original questions

Q: What are the parameters to define major KPI in the construction project ?
A: PMI has now 44 processes in addition to Health and Safety, Variations, Environmental Impact, Society Impact, etc. All these can be monitored depending on the requirements of the client. If he needs to measure the manhours, then have a KPI for Manhours. Divide the Actual monthly/ Mhrs monthly planned.

Q: How many KPI should we have in a mixed use medium size construction project ?
A: Usually a the clients of a project this size do not ask about KPIs. This person asking about KPIs would have influence from advanced management systems at large corporations.

Q: Owner want to link KPI with cost as well as man hours???
Earned Value Management provides index for the important cost KPIs on the same project. Maybe he wants to compare it to other similar projects! Then you need an external reference.

It is very important to commmunicate with your client to understand exactly what they need to know.

With kind regards,

Samer
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Sun, 2010-02-07 11:18
#10
Vladimir Liberzon
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Amreshwar,
please think about project success criteria.
What you consider as successful performance?
Minimal problems with quality, being on time and on budget, what else?
KPI shall motivate project participants to improve project success criteria.
There is a problem woth nultiple criteria. Some project may be delayed but saved money - is it good or bad?
There is a need in some overall projec success criterion.
We usually suggest to estimate the cost of one day delay. You can define penalty for poor quakity performance.
If time and quality are estimated in cost units you will have single project success criterion that includes cost, time and quality performance.
It is just an example. Your KPI shall be developed basing on your contract conditions. You can estimate the cost of project time performance if you are motivated to finish earlier. In other case early completion does not bring anything, only delays cost money.
Maybe your Client suggests you to formalize project success criterion to be able to estimate overall project performance.
Best Regards,
Vladimir
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Sun, 2010-02-07 10:36
#11
A D
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Check this website:

http://www.kpilibrary.com/

HTH

Cheers,

Ravi
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Sun, 2010-02-07 00:14
#12
Amreshwar Shukla
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Dear Samer,

All above have been set as the major milestones and presented to client in first meeting , but he was insisting on KPI to be defined. In second meeting all other progress measurement coefficient like CPI , SPI ,SV CV etc are provided to him and included in the monthly report.But he is still insisting on KPI’s to be defined for the project. We tried to find out what he is having his mind (he is old experienced civil eng with lots of project management in his hand), but nothing came out of that meeting. He is still asking for "KPI TO BE DEFINED FOR THE PROJECT" with his loud voice in front of CEO , COO etc..

It is not the question of client management but in my views he is looking for something which I am not able to figure out?

Any body else has gone thru the same situation ?

Need advice on this...


Thanks in advance.

Shukla
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Sun, 2010-02-07 00:13
#13
Amreshwar Shukla
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Dear Samer,

All above has been set as the major milestones and presented to client in first meeting , but he was insisting on KPI to be defined. In second meeting all other progress measurement coefficient like CPI , SPI ,SV CV etc are provided to him and included in the monthly report.But he is still insisting on KPI’s to be defined for the project. We tried to find out what he is having his mind (he is old experienced civil eng with lots of project management in his hand), but nothing came out of that meeting. He is still asking for "KPI TO BE DEFINED FOR THE PROJECT" with his loud voice in front of CEO , COO etc..

It is not the question of client management but in my views he is looking for something which I am not able to figure out?

Any body else has gone thru the same situation ?

Need advice on this...


Thanks in advance.

Shukla
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Fri, 2010-02-05 03:52
#14
Samer Zawaydeh
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Dear Amreshwar,

You need to know what your client wants to monitor. Then you can make sure that you are satisfying that need. The KPIs for most of the projects are monitoring the completion of the following:

1. Site Set up or mobilization.
2. COC commencement finacial requirements
3. Material submittals (Civil, Architectural, Mechanical, Electrical)
4. Shop drawings (Civil, Architectural, Mechanical, Electrical)
5. Procurmenet
6. Construction
7. Testing and Comissioning
8. Handing over.

At each stage, you can have a KPI to monitor the ratio on a weekly, monthly or total requirements (Completed/Required). All this information can be summarized in one sheet of paper.

Hope that the information helped.

With kind regards,

Samer
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Thu, 2010-02-04 23:51
#15
Amreshwar Shukla
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Dear Mimoune,

I am working for PMC and having the fully cost & resouces loaded schedule. Client is experienced Civil Engineer and not interested in CPI/SPI ! He is looking for something else...

Any suggestion please??

Thanks in advance..

A.S.Shukla
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Thu, 2010-02-04 16:15
#16
mimoune djouallah
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very interesting question, i am waiting to hear from other senior planners what they think.

perhaps you can use earned value method, there is two kpi you can use; cost performance index, and schedule performance index;

cpi= bcwp/acwp
spi =bcwp/bcws

cpi < 1, means that the work cost more then what you have planned.

spi < 1, means that you are late.

now you must be sure what to show to the client, of course never show your "real cost". and i supposed you have a cost loaded program.

please can you be more explicit, your are main contractor ! ?, what’s the type of contract you have lump sum, unit rate, so others can give you better advice.

best regards
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Thu, 2010-02-04 14:27
#17
Samer Zawaydeh
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Dear Amreshwar,

You need to think about increasing customer satisfaction and reducing cost. So the Parameters that you might consider achieving must be relatd to Cost, Scope, Time and determining what the client values at the start of the project and monitoring that.

With kind regards,

Samer
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