The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone...

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The Construction Industry KPIs: the UK experience Peter Cunningham Director Constructing Excellence Copenhagen 21 st April 2008

Transcript of The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone...

Page 1: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

The Construction Industry KPIs:

the UK experience

Peter Cunningham

Director – Constructing Excellence

Copenhagen

21st April 2008

Page 2: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Agenda

• Background to the UK Construction Industry KPIs

• The UK Industry KPIs and how they are used

• KPIzone - the UK Construction Industry KPIs on-line

• Case study: Benchmarking in public sector frameworks

• KPI Services from Constructing Excellence

Page 3: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Background to the UK KPIs

Page 4: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Promoting industry change in the UK

1994 1998 2002 2006

Page 5: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Product

development

Production of

components

Project

implementation

Partnering

the

supply chain

Committed leadership

Focus on the customer

Product Team Integration

Quality driven agenda

Commitment to people

5 - Key Drivers for

Change

4 - Key Project

Processes

7 - Targets for

Improvement

Capital cost

Construction time

Predictability

Defects

Accidents

Productivity

Turnover & profits

-10%

-10%

+20%

-20%

-20%

+10%

+10%

The ‘Egan’ vision for change

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Our purpose is to

Improve industry performance

The outcome will be

A demonstrably better built

environment

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270 member organisationsClients, contractors, consultants and suppliers

Page 8: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

KPIs: 1999 - 2006

2007

Page 9: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

KPIzonethe UK KPIs on-line

Comprehensive database of all years‟ KPIs

KPI graphs for all major industry sectors

„My KPIs‟ management tools

Over 700 analyses of Industry Performance

Tutorial and best practice information

www.kpizone.com

Page 10: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

The UK Industry KPIs

& how they are used

Page 11: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

The KPI ‘Hierarchy’…

All

Construction

Specialist

Sector

+ +

++

+ +

+ +

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Main uses of KPIs

• Company/project benchmarking

• Monitoring frameworks

• Meeting audit and QA requirements

• Monitoring Industry trends

• Comparison of Demonstration project performance

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2007 UK Economic (All Construction) KPIs

• Client satisfaction:

– Product and service

• Defects

• Predictability:

– Cost and time

• Profitability

• Productivity

• Safety

• Construction cost

• Construction time

Page 14: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Client satisfaction – product

Scoring 8/10 or better

72% 73% 72% 73%78% 80%

83% 84% 82%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Page 15: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Client satisfaction – service

Scoring 8/10 or better

58%63% 63%

65%

71%74%

77%79%

75%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Page 16: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Defects

Scoring 8/10 or better

65%

53%58%

68% 68%72%

77%73%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007

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Cost predictability

65% 64% 63% 63%65%

62% 63%

66%64%

30%

40%

50%

60%

70%

80%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Cost Predictability – design

37%

45%48%

50% 52%49% 48%

44%49%

30%

40%

50%

60%

70%

80%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Cost Predictability – construction

50%46%

48%52% 50%

48%45% 46%

30%

40%

50%

60%

70%

80%

2000 2001 2002 2003 2004 2005 2006 2007

Cost Predictability – project

% On cost or better

Page 18: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Time predictability

37%41%

46%

53%55%

52%57% 58%

30%

40%

50%

60%

70%

80%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Time Predictability – design

36%

42%44% 44% 46% 44%

58%

30%

40%

50%

60%

70%

80%

2000 2001 2002 2003 2004 2005 2006 2007

Time Predictability – project

% On time or better

34%

62%59%

61%59% 60%

62%60%

65%

30%

40%

50%

60%

70%

80%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Time Predictability – construction

Page 19: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Profitability: Median profit on turnover (%)

Profitability

4.4%5.1% 5.2% 5.4%

7.0%

8.1% 7.9% 8.2%

0.0%

2.5%

5.0%

7.5%

10.0%

2000 2001 2002 2003 2004 2005 2006 2007

Page 20: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Reportable accidents per 100k employed (Industry AIR)

Safety

Better

13541271

1318

1217

10971172

1023

901946

0

500

1000

1500

1999 2000 2001 2002 2003 2004 2005 2006 2007

Page 21: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Main uses of KPIs

• Company/project benchmarking

• Monitoring frameworks

• Meeting audit and QA requirements

• Monitoring Industry trends

• Comparison of Demonstration project performance

Page 22: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Showcasing innovation & best practice

• 612 Projects since 1998

- 386 Buildings & Estates and Infrastructure

- 226 Housing sector

• Value £12bn (12.5% of total industry value in 2007)

• 455 completed, 157 live and active

• Involvement of over 1400 organisations UK wide

• 132 case studies

• 60 associated reports and publications

Page 23: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Main demonstration themes 2008

• Fair payments

• Cross-authority co-operation

• Integrated teams

• CSR

• Logistics and supply development

• Integrated supply chains (to 3rd or 4th tier)

• Adding Value (focusing on buildings in operation)

• Sustainable training for sustainable communities

• Increasing innovation in the supply of new homes

• Design and customer satisfaction

• Improving existing stock

• The business case for health and safety

• Sustainability

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Demonstration v Industry 2007CE 2007 Industry 2007 = 100

0

50

100

150

200

250 297

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Demonstration v Industry 2007CE 2007 Industry 2007 = 100

0

50

100

150

200

250 297

Page 26: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Companies

House

Const

Products Assoc

Heath & Safety

Executive

Building Cost

Info Service

KPIOffice for

National StatsBSRIA

Dept for

Business RR

Investors

In People

KPI supply chain

KPI

graphsRelated

information

KPIzone.com

Page 27: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

KPI

Database

All

Years

Se arch

M&E

Contractor

Data

collection

forms

KPI

Graphs

KPI

Calculator

Report

Results

KPI

Manual

UK Construction Industry KPIs - KPIzone

Select KPIs

Use KPIs

Menu of main

KPI groups

KPIs for your

role

Free search

for any KPIs

Page 28: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

KPIzone features

Benchmark graphs for all major industry sectors:

– Economic

– Respect for People

– Environment

– Housing

– Non-housing

– Infrastructure

– M&E Contractors

– Construction Consultants

– Construction Products Industry

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Free to

view area

KPIzone – the UK Construction Industry

KPIs on-line at www.kpizone.com

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KPI

BuilderPay area

KPIzone – the UK Construction Industry

KPIs on-line at www.kpizone.com

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“I‟m a

contractor”

Selecting relevant KPIs

Page 32: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Quality, cost, time…

“I must

benchmark my

waste”

Page 33: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

All related

information

in 1 place

KPI

calculator

25

64%

2007

industry

KPI graph

KPIzone supplies all relevant information

Page 34: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

25

64%

25m3/£100k

64%

36% are

better

than me

64% are

worse than

me

Simple benchmarking against any KPI

Page 35: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

What about cost

predictability – excluding

the effect of client

changes?

Quality, cost, time, etc

Page 36: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Predictability costPredictability cost

(construction) –

excluding client

changes

Page 37: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

-1%

78%

Predictability cost

Performance =

1% less than anticipated

78%

22%

better

than me

78% are

worse than

me

Page 38: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

All related

information

in 1 place

KPI

calculator

Your

personal

set of KPIs

25

64%

Page 39: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Your

performance

record

Choice of

presentation

method

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Choice of presentation method

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Choice of presentation method

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Choice of presentation method

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My KPIs Handbook

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Calculate KPIs

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My KPIs Handbook

Page 46: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

My KPIs Handbook

Page 47: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

My KPIs Handbook

www.kpizone.com

Page 48: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Main uses of KPIs

• Company/project benchmarking

• Monitoring frameworks

• Meeting audit and Quality Assurance requirements

• Monitoring Industry trends

• Comparing Demonstration project performance

Page 49: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

KPI Case Study: Benchmarking in

frameworks

• Local Government client; 4 year framework measuring:

– Client satisfaction – Product

– Client satisfaction – Service

– Defects

– Employee retention (equates to the national Staff Turnover KPI)

– Safety

Page 50: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Client Satisfaction Traffic Light analysis

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Analysis by KPI

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Analysis by Project

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Analysis by subcontractor

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Analysis of subcontractors by KPI

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Analysis by Contractor

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Overall Benchmark Score

Page 57: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

User recognition

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International links

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• Helpdesk

• Executive briefing

• KPI Business Solutions

- consultancy service

• KPIZone website:

- Free area

- Subscription service

www.kpizone.com

Structured support from CE…

• Masterclasses

• In-house workshops

Page 60: The Construction Industry KPIs: the UK · PDF fileUK Construction Industry KPIs - KPIzone Select KPIs Use KPIs Menu of main KPI groups KPIs for your role Free search for any KPIs.

Thank you for listening !

[email protected]

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