National Construction Industry Performance Benchmarking KPIs 20… · S1 Client Satisfaction -...
Transcript of National Construction Industry Performance Benchmarking KPIs 20… · S1 Client Satisfaction -...
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National Construction IndustryPerformance Benchmarking
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Agenda
Why Benchmark?
Who is doing it?
NZ Industry Results
What’s Next?
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UK Government sets stiff Targets for 2025
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Why Benchmark?
Sir John Egan: 30% Waste
Manufacturing Construction
Productive Time
Waste
57%
Productive Time
Waste
12%
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Why Benchmark?
Boom Bust – does this affect performance?
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National Industry Performance 2006, 2011, 2013
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UK Boom Bust Versus Client Satisfaction
-10%
-5%
0%
5%
10%
Q1
Q3
Q1
Q3
Q1
Q3
Q1
Q3
Q1
Q3 Q1
Q3
Q1
Q3 Q1
Q3
Q1
2006 2007 2008 2009 2010 2011 2012 2013 2014
Ch
ange
on
a y
ear
earl
ier
Construction Inflation Accelerating
All WorkNew WorkSource: ONS – Implied Construction output deflator
60%
65%
70%
75%
80%
85%
90%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
% r
ati
ng 8
ou
t o
f 10 o
r h
igh
er
Client Satisfaction
Product Service Value for Money Defects
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Why Benchmark?
Which one are you?
Do you know?
What’s your evidence?
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Why Benchmark?
High Performance Client
Client of choice
Best tender prices
Demonstrate Value for Money
Ability to run Alternative Procurement
Best Value Supplier
Supplier of choice
Demonstrate Value for Money
Repeat business
Ability to negotiate on Alternative Procurement
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Who’s doing it?
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National Industry Performance: 2014 ReportKPI
Suite KPI Measure - % Projects 2004 2005 2006 2011 2012 2013
This
Year
All
Years
S1 Client Satisfaction - Consultant % Scoring 8/10 or better 62% 79% 39% 65% 56% 74%
S2 Client Satisfaction -Contractor % Scoring 8/10 or better 62% 79% 39% 66% 74% 58%
S3 Client Satisfaction - Delivery Team % Scoring 8/10 or better - - - 80% 72% 67%
S4 Delivery Team Satisfaction with Client % Scoring 8/10 or better - - - - 78% 57%
S5 Use Lead Consultant Again? % Scoring 8/10 or better - - - - 74% 66%
S6 Client Satisfaction Use Contractor Again? % Scoring 8/10 or better - - - 79% 86% 79%
S7 Client Satisfaction Value for Money % Scoring 8/10 or better - - - 75% 88% 77%
Q1 Client Satisfaction Product % Scoring 8/10 or better 73% 82% 88% 79% 83% 71%
Q2 Impact of Defects on Handover % Scoring 8/10 or better 40% 78% 31% 72% 80% 72%
Q3 Defects Clearance Period% where defects are cleared
within 14 days- - - 60% 55% 75%
SAFETY HSE1 Safety LTIs% Projects with zero LTIs (Lost
Time Incidents)33% 41% 77% 87% 93%
C1 Predictability Design Cost % on target or better 53% 55% 55% 81% 79% 57%
C2 Predictability Construction Cost % on target or better 42% 54% 39% 53% 61% 66%
C3 Predictability Project Cost % on target or better 33% 48% 40% 42% 68% 71%
T1 Predictability Design Time % on target or better 38% 52% 22% 72% 67% 68%
T2 Predictability Construction Time % on target or better 65% 73% 53% 65% 63% 62%
T3 Predictability Project Time % on target or better 34% 50% 23% 47% 69% 42%
PROFIT *P1 Profit (Pre-tax Profit) Company KPI*Median % profit before
interest & tax10% 10% 7% - 6.6%
SAT
ISFA
CT
ION
QU
ALT
IYC
OST
TIM
E
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National Industry Performance: 2014 Report Horizontal Versus Vertical
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National Industry Performance: 2014 Report International Benchmark - UK
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UK Constructing Excellence Response
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What’s in it for me?
Benchmark your performance NOW!
Create a plan to WOW!
Join us on the journey
Submit Data
Join us to develop industry targets and response
Contact Amanda Warren
021 892 124
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Thank You
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What are they?
New Zealand Construction Industry’s suite of Industry Performance Measures
The first step in the 20/20 Journey
But…
Weighing the Pig doesn’t…….
Benchmark
Analyse
Improve
Perform
Measure
Best Practice
Team
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A bit of History…
1998 UK KPIs 2004 NZ adopts and adapts
Source: Construction Industry Institute
2004
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Where are we now?
Third suite since 2006
Vertical Vs Horizontal Suite
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The Results – The Wallcharts...
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The Results – Spidergraphs...
0%
20%
40%
60%
80%
100%
Client satisfaction product
Client satisfaction service
Defects
Predictability of cost of design
Predictability of cost of construction
Predictability of construction time
Predictability design time
Safety
Value for Money
`
65%
25%
51%
86%
29%
47%
77%
43%
Example Project Spidergraph
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NZ Industry Results – 2006, 2011, 2012% Projects Scoring…
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NZ Industry Results – 2006, 2011, 2012% Projects Scoring…
What will 2013 look like?
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The wall of work is coming
Ian Page, BRANZ
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Our hypothesis
During periods where the turnover of the construction industry is low (“famine”), productivity increases, waste decreases.
The KPI scores are higher.
During periods where the turnover of the construction industry is high (“feast”), productivity decreases, waste increases.
The KPIs scores get lower.
So please help us test this hypothesis by providing data for 2013 projects.
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What next?
Full Report published mid December 2014
Sponsors personalised Benchmark December 2014
Gathering your 2013 project data by end October 2014
Lets all get measuring but…
Let’s FATTEN THAT PIG – Together!!!
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NZIM Diploma in Project
Management (Lvl 5)
Supply Chain
Clients
Govt
Ways we help the industry to improve
Benchmarking & Continuous
Improvement
Business & Project Coaching
NZIM Diploma in Managerial Excellence in
Engineering & Construction (Lvl 6) Lean Construction
& Last PlannerTM
Industrial Research in Best Practice
Construction Clients’ GroupAkl, Well, ChCh
Pathfinder Project Programme