Benchmarking productivity in the construction sector. Don Ward Chief Executive Constructing Excellence UK

Transcription

1 Benchmarking productivity in the construction sector Don Ward Chief Executive Constructing Excellence UK

2 Constructing Excellence A national, regional and local (and international) platform for industry improvement to deliver better value for clients, industry and users through collaborative working A BETTER INDUSTRY TOGETHER

3 80 national members, 9 regional Centres 35 best practice Clubs, 380 G4C members 5 international partners including CIC

4 CE International Alliance CE International Alliance Project partners Other links

5 We were set up by the government over 10 years ago, funding is now mainly from industry Industry membership Government programmes Commercial income

6 National members Clients BAE Systems BBC Birmingham City Council Crossrail East Riding of Yorks Council EDF Energy (NNB GenCo) Environment Agency Heathrow Airport Highways Agency Igloo Regeneration Lambeth Living London Underground Magnox Manchester City Council Marks & Spencer Nationwide Building Society Northumbrian Water ProCure 21 Rochdale Boroughwide Royal Mail Group Sandwell MBC SCAPE Westfield Group Worthing Homes Yorkshire Water Contractors Balfour Beatty Bovis Lend Lease Bowmer & Kirkland Cara Dawnus Graham Higgins Interserve ISG Cathedral Contracts ITC Concepts Keltbray Kier Group Mace McGee Morrison Galliford Try Opco Renovate to Perfection Shepherd Skanska Integrated Projects Stepnell Thomas Vale Construction Wates Construction Willmott Dixon Consultants Arup Capita Symonds CH2M Hill Coaction Management CWC Davis Langdon DBD Limited Eversheds FaulknerBrowns Invennt LCMB Mott MacDonald Pick Everard Rider Levett Bucknall Room4 Consulting Ryder Architecture Scott Brownrigg SmartBIM Solutions Synaps Thurlow Associates Trowers & Hamlin Turner & Townsend Waterman Wragge Manufacturers & Suppliers 4Projects Astins Coubari Graphisoft Knauf Drywall Management Process Systems Polypipe Terrain Tekla UK Timber Frame Association Waterloo Air Products Associates British Property Federation Chartered Institute of Building UK Green Building Council University of Reading

7 Six core activities to support continuous improvement Action research & innovation Evidence Leadership & influence KPIs & benchmarking Core activities Guidance & training Demonstrations Delivery Networks

8 UK construction improvement can be charted by a number of key reports

9 ... and by a number of mega-projects 5.8 bn 4.3 bn 9.3 bn 1980s

10 The Egan vision for change, Key drivers for change 4 Key project processes 7 Targets for improvement Committed leadership Capital cost -10% Focus on the customer Product development Partnering the supply chain Construction time Predictability -10% +20% Product Team Integration Defects -20% Quality driven agenda Project implementation Production of components Accidents Productivity -20% +10% Commitment to people Turnover & profits +10%

11 Egan inspired the Construction Industry Key Performance Indicators Safety Predictability Cost Time Defects Construction Cost Construction Time Profitability Productivity Client satisfaction Product Service Environmental impact Product Process Employee satisfaction Staff turnover Qualifications & skills

12 Client satisfaction with the service (and the product) they receive is up 100% Client Satisfaction - Service % 8/10 or better 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 71% 74% 77% 79% 84% 82% 75% 77% 80% 63% 63% 65%

13 The industry has improved its safety 1600 Safety - Industry Accident Incident Rate (AIR)

14 Egan called for demonstration projects Nearly 600 projects since 1998, Value over 15bn Over 500 completed, c.50 live Involvement of over 1500 organisations UK-wide 200 case histories 80+ associated reports and publications Silk Stream Flood Alleviation Scheme

15 Demonstrations cover all sectors, regions and sizes

16 Demonstration projects out-perform the rest of the industry pan-industry performance =

17 Benchmarking Continuously comparing your performance against others, then using lessons from the best to make improvements How do we compare? Why are our results different? Who is better? Why are they better? Do we need to improve? By how much? What target should we set? How should we do it? What actions should we take when?

18 The benchmarking process

19 A web-based approach Different access levels allows project partners to write reports and view data without changing the data Collecting data from anywhere with Internet access

20 Reporting results

21 10-year trend in economic indicators B E T T E R 50 0 Predictability Cost, Project Predictability Cost, Design Predictability Cost, Construction Predictability Time, Project Predictability Time, Design Predictability Time, Construction

22 10-year trend in people indicators (First year with data = 100) B E T T E R 0 Employee Satisfaction Staff Turnover Sickness Absence Safety Industry Safety - All Contractors

23 Construction 2025, BIS, 2013 People Smart Sustainable Growth Leadership

24 A burning platform for transforming performance A fit-for-purpose, streamlined industry by 2025

25 UK Government departments Cost reduction trajectories 2013

26 Outcome themes Environmental excellence Attractive industry, positive profile End user delight Sustainable profitability Client/ customer satisfaction

27 Three overriding principles of collaborative working Common vision and leadership Culture and behaviours Processes and tools

28 There are 6 critical success factors for collaborative working Early involvement Selection by value Common processes and tools } BIM, continuous Measurement of performance } improvement Long-term relationships } => lean Aligned commercial arrangements

29 Productivity The measure of the rate at which work is performed A ratio of production output to what is required to produce it

30 Above all, customers want value and we need to understand how clients and users measure it (, happy residents, CO2 etc) Value = Benefit Cost WHOLE LIFE

31 The value of client outcomes far outweighs the project costs Construction Design 100K Operation and Maintenance 1M 5M Business Costs 200M Outcomes M? Process Push User Pull

32 For further information or contact constructingexc