![]() ![]() If using external benchmarking, determine the best way to adapt these successful processes. ![]() ![]() Implement and monitor improvementsĬollaborate with employees and laborers to implement solutions. Once performance and financial gaps have been identified, its time to right the ship. It will identify the strengths and weaknesses of the operations that need to be shored up. Whether conducting internal or external benchmarking, effectively analyzing the numbers can help expose and deficiencies in a construction company’s performance. Also, for those which don’t have concrete numbers to analyze like customer satisfaction, a scoring system can be useful. Others are a bit more difficult to quantify, requiring some number crunching – such as productivity and schedule performance. Some of this will be relatively simple such as overhead costs per project or profit margins. Example KPIs for the Construction IndustryĬollecting the data is the most labor-intensive portion of the benchmarking process.In the construction industry, the more common KPIs include the number of change orders, cost predictability, productivity rates, profit margins, project completion time, etc. The first step to proper benchmarking is identifying which key performance indicators (KPIs) need improvement. Job costing and project estimating aren’t the only factors that can affect profits. Identifying these best practices provide an opportunity to look beyond the bottom line. The benchmarking process can help construction firms better understand what makes other companies successful and what factors can be optimized. What did and didn’t work on the last project? What could be improved? Was there an excessive amount of change orders? Did delays occur due to poor scheduling or improper work sequencing? Analyzing these issues can be a valuable guide to any weaknesses or missed opportunities. Internal benchmarking involves a careful review of past projects. This form of analysis is inward focused, and can often prove more valuable than its external counterpart. But benchmarking isn’t just comparing one company against another, it can also be conducted internally. Therefore, some assumptions will need to be drawn. Most construction businesses don’t want to release any private information. However, competitive benchmarking can prove a bit trickier. Industry-wide benchmarking data can be found in published surveys conducted by private firms. This can be conducted against direct competitors or the industry as a whole. Higher quality performance means fewer defects, less reworking, and eventually, higher prices. Improved completion rates mean the ability to move on to other projects. Better productivity means increased cost savings. This goes well beyond simply tightening budgets and streamlining schedules – it’s about continuous improvement. But how does anyone know what these best practices are? That’s what benchmarking is all about – learning how to improve based on the competition or reviewing processes internally. We talk about “industry best practices” a lot. Benchmarking ensures continuous improvement. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |