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Topics: Construction, Estimating
Productivity Chart
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Karthikeyan Kathirvel Senior Principal Project Control| Wood Group Abu Dhabi, United Arab Emirates
I am finding it difficult to finalize the Productivity Chart for the Construction Works. Mainly Civil works. Need to set benchmarks and introduce incentives, awards or some kind of recognition. Can anyone help me????
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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
This is my field of expertise and I will do my best to assist you but I need you to be more specific and elaborate more on what is exactly required. I am not able to understand well what do you need. I've always used productivity rates as you might be aware.
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Karthikeyan Kathirvel Senior Principal Project Control| Wood Group Abu Dhabi, United Arab Emirates
Say for example, amount of steel work to be completed by a pair of Steel Fixer and Helper.. Let me give you a scenario, so that it will be easy for you to help me. We are building a reservoir of 6m height. Base, 2 lift wall and roof. There are activities like scaffolding, shuttering, rebar, concreting etc. Say I have a pair of Steel Fixer and helper working on rebar. Now what should be the target for a day.

We have a previous record but somehow I feel it is a very steep benchmark to achieve. The current benchmark is to achieve 400kg per day but that was not set considering the size of the steel. Earlier they worked with heavy steel, so they achieved it very easily but now people working with relatively low weighted steel and finding it difficult to achieve.

Hope you understand the scenario, please ask me if I didn't explain clearly
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1 reply by Rami Kaibni
Jan 06, 2016 11:55 PM
Rami Kaibni
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I think I do understand. Well, let me explain to you based on what I understood. First let us make some assumptions to make things easier to understand:

- Material Cost is not included in these calculations because it is irrelevant at this stage.
- 1 Day = 8 Working Hours
- Steel Fixers & Labors are Direct Manpower
- Steel Fixer Rate / Hr = $25
- Labor Rate / Hr = $15
- Total Amount of Rebar in the Project is X Ton
- Total Estimated No. of MHRS required for all Rebar Fixing = Y MHRS (Based on historical data and skilled SF availability in the market - MHRS should be in two categories (Steel Fixers & Labors)
- Total Cost of Rebar Fixing = (SF MHRS x Pay Rate SF + Labor MHRS x Pay Rate Labor) x K Factor = $Z
- K factor is a factor to account for the different levels of difficulty because assembling rebar for a foundation is not as difficult as doing that for a shear wall.

Now you have three figures: Y MHRS, X Ton, $Z

Productivity Rate = Y / X = MHRS / Ton (No. of MHRS required to complete a Ton)

Or

Productivity Rate = Z / X = $ / Ton (How many dollars to complete one ton)

In your case, you have 2 SF + 1 Labor so you know how much they will cost you for a day and you know that the total MHRS are 24 MHRS / Day for the 3 of them so you can calculate how many tons they should produce the 3 of them in a day as follows:

X Ton should be done in Y MHRS so how many Tons in 24 hours. You will realize how many tons as per your budget they have to produce so you remain within the budget figures and within the productivity rate $Ton.

Of course, the cost control adds the Material + Associated Risk + COQ + Cost of Assembling to end up with the final or overall estimate. For site monitoring purposes, you only need to know the Cost of Rebar Fixing / Hour.

Hope this answers your concerns. Let me know if anything else is required.
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Jan 06, 2016 11:10 PM
Replying to Karthikeyan Kathirvel
...
Say for example, amount of steel work to be completed by a pair of Steel Fixer and Helper.. Let me give you a scenario, so that it will be easy for you to help me. We are building a reservoir of 6m height. Base, 2 lift wall and roof. There are activities like scaffolding, shuttering, rebar, concreting etc. Say I have a pair of Steel Fixer and helper working on rebar. Now what should be the target for a day.

We have a previous record but somehow I feel it is a very steep benchmark to achieve. The current benchmark is to achieve 400kg per day but that was not set considering the size of the steel. Earlier they worked with heavy steel, so they achieved it very easily but now people working with relatively low weighted steel and finding it difficult to achieve.

Hope you understand the scenario, please ask me if I didn't explain clearly
I think I do understand. Well, let me explain to you based on what I understood. First let us make some assumptions to make things easier to understand:

- Material Cost is not included in these calculations because it is irrelevant at this stage.
- 1 Day = 8 Working Hours
- Steel Fixers & Labors are Direct Manpower
- Steel Fixer Rate / Hr = $25
- Labor Rate / Hr = $15
- Total Amount of Rebar in the Project is X Ton
- Total Estimated No. of MHRS required for all Rebar Fixing = Y MHRS (Based on historical data and skilled SF availability in the market - MHRS should be in two categories (Steel Fixers & Labors)
- Total Cost of Rebar Fixing = (SF MHRS x Pay Rate SF + Labor MHRS x Pay Rate Labor) x K Factor = $Z
- K factor is a factor to account for the different levels of difficulty because assembling rebar for a foundation is not as difficult as doing that for a shear wall.

Now you have three figures: Y MHRS, X Ton, $Z

Productivity Rate = Y / X = MHRS / Ton (No. of MHRS required to complete a Ton)

Or

Productivity Rate = Z / X = $ / Ton (How many dollars to complete one ton)

In your case, you have 2 SF + 1 Labor so you know how much they will cost you for a day and you know that the total MHRS are 24 MHRS / Day for the 3 of them so you can calculate how many tons they should produce the 3 of them in a day as follows:

X Ton should be done in Y MHRS so how many Tons in 24 hours. You will realize how many tons as per your budget they have to produce so you remain within the budget figures and within the productivity rate $Ton.

Of course, the cost control adds the Material + Associated Risk + COQ + Cost of Assembling to end up with the final or overall estimate. For site monitoring purposes, you only need to know the Cost of Rebar Fixing / Hour.

Hope this answers your concerns. Let me know if anything else is required.
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Karthikeyan Kathirvel Senior Principal Project Control| Wood Group Abu Dhabi, United Arab Emirates
Thanks Rami... But my concern is not about cost based... I want to fix a target or Benchmark for the Workforce (Effort based)... We have our own in house workforce paid regularly...

Now my management want to gauge their performance.. To measure, I need some benchmark to measure against. I have some historical data but it seems to be irrelevant..

Do we have any industrial recognized Productivity chart for Steel works. Say, a team of SF & H must have completed so many kilos of steel. We are measuring our Construction progress based on Effort or amount of work completed.

We have an estimation of 5000 Ton steel structure to be completed for this project. As per our earlier record, a pair must complete 400kg of steel work per day but currently they are achieving approximately 200kg on regular basis. Now we want to understand if the Benchmark is wrong or there is an issue somewhere else. We want to study this thoroughly to find a solution.
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
I answered you based on your explanation above.

You obtained productivity rates based on your current cost estimates. You want to deviate from these estimates as they can't achieve the tonnage request as per budget per day which is 400 KG. They are currently making 200 KG so this means you need to double the manpower to achieve 400 KG which will double the cost so your concern should be the cost baseline.

I never heard of international productivity charts. Each country has different charts based on many factors such as weather, market conditions, etc but still you can't compare to these. The only thing you can do comparison for is the Historical Data from your organization. I do not believe this is the first project you did with heavy steel so you should have some sort of historical productivity data. If not, then compare to similar projects from other organizations within your area. Based on your findings, in both cases since they are not able to do it, you have to submit later a change request report to justify doubling the manpower because it will double the cost.

Justification could include proof of wrong estimate if historical data proved to show 200 KG not 400 KG. Moreover, you can calculate if you can do a balance: If now for heavy steel 3 SF assemble 200 KG instead of 400 KG, so when there is light steel can they do 600 KG instead of 400 KG, this will strike a balance for you at the end of the activity. One more thing, benchmark with projects in your area, not further otherwise you will get inacurate results.

Did that help ?

On a side note, your figures do not sound realistic. 200 KG for 2 SF and 1 Labor is very low productivity rate. They should be able to do the 400 KG easily regardless of the steel weight. If 1 Bar 32 mm dia weights 6.3 KG/M which is around 75 KG / 12 M (Which is the bar standard length delivered from factory and I am assuming here that rebar is already cut and bent to drawings, we are talking about fixing only) so as per your figures, the SF and labor will spend a whole day on 2.5 Bars 32 mm ? Did I miss something here ?
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Karthikeyan Kathirvel Senior Principal Project Control| Wood Group Abu Dhabi, United Arab Emirates
This is exactly what I am looking for. You got it right. As you said, 400kg is easily achievable but consistently our workforce achieving 200 kg per day. We have conducted inspection and thorough supervision and everything but still finding it difficult to achieve the said target. We are bit confused. May be I must tell "They are working in an island which covers around 4sq.km and the weather is very harsh on them. This could be a factor. but again 50% variance in target could lead us to huge difference in cost baseline and that's exactly what my management is concerned about.

Need to do root cause analysis. Health and safety of my Workforce is one of the primary concerns as we can't give them some impossible benchmark and rate them but again I don't want to let them off hook due to some unknown reasons.

Need to do soul search analysis.
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1 reply by Rami Kaibni
Jan 07, 2016 3:02 AM
Rami Kaibni
...
I am glad I was able to help you - At least I hope I did.

From my experience, when I had similar situations and I believed the target was achievable, I used to give them incentive:

Example: Finish the target in 3 days instead of 4 and take the 4th day off and paid or little bonus incentive to motivate them and it proved success and incured savings in areas where we used to be in delay. Its all about how smart you are in managing people and projects, you need to be create in solving problems.

You have to do mitigation for the problem after you discover the root cause but I believe incemtive scheme will resolve the issue.
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Jan 07, 2016 2:55 AM
Replying to Karthikeyan Kathirvel
...
This is exactly what I am looking for. You got it right. As you said, 400kg is easily achievable but consistently our workforce achieving 200 kg per day. We have conducted inspection and thorough supervision and everything but still finding it difficult to achieve the said target. We are bit confused. May be I must tell "They are working in an island which covers around 4sq.km and the weather is very harsh on them. This could be a factor. but again 50% variance in target could lead us to huge difference in cost baseline and that's exactly what my management is concerned about.

Need to do root cause analysis. Health and safety of my Workforce is one of the primary concerns as we can't give them some impossible benchmark and rate them but again I don't want to let them off hook due to some unknown reasons.

Need to do soul search analysis.
I am glad I was able to help you - At least I hope I did.

From my experience, when I had similar situations and I believed the target was achievable, I used to give them incentive:

Example: Finish the target in 3 days instead of 4 and take the 4th day off and paid or little bonus incentive to motivate them and it proved success and incured savings in areas where we used to be in delay. Its all about how smart you are in managing people and projects, you need to be create in solving problems.

You have to do mitigation for the problem after you discover the root cause but I believe incemtive scheme will resolve the issue.
avatar
Karthikeyan Kathirvel Senior Principal Project Control| Wood Group Abu Dhabi, United Arab Emirates
Of course you did. End of my analysis, I am planning to include this incentive scheme as a part of mitigation plan to motivate them and improve the situation.
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1 reply by Rami Kaibni
Jan 07, 2016 3:10 AM
Rami Kaibni
...
Good Luck - I am glad I was able to assist.
Feel free to reach me for any future concerns and Ill do my best to assist to the best of my knowledge.
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Jan 07, 2016 3:08 AM
Replying to Karthikeyan Kathirvel
...
Of course you did. End of my analysis, I am planning to include this incentive scheme as a part of mitigation plan to motivate them and improve the situation.
Good Luck - I am glad I was able to assist.
Feel free to reach me for any future concerns and Ill do my best to assist to the best of my knowledge.
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