2007
Forward
A common perception of the construction industry is one in which projects and services
are often delivered unsafely, late, over budget and below quality,.
Key Performance Indicators have a crucial role to play in improving the reputation of the
construction industry by providing organisations with a simple but effective method for
monitoring performance.
Traditionally, the construction industry has relied on reputation as its main marketing tool.
While this, on its own, is undoubtedly important, if combined with hard evidence
reputations can be greatly enhanced. KPIs provide this hard evidence and allow those
within the industry to compare how organisations are performing.
Clients and suppliers, using the SCC KPI framework, can easily set-up a process for
measuring key areas of performance such as Satisfaction, Cost, Time, Quality & Safety.
The framework offers flexibility in the measurement detail to best suit your own
organisations requirements and available resource. .
This handbook along with the SCC KPI framework “Method of Measurement” documents
should provide you with all the information you need to get started.
Further support is available from the Scottish Construction Centre. http://www.scocon.org
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An introduction to the SCC KPI framework
The Scottish Construction Centre KPI Framework was launched in September 2007.
The framework incorporates the Scottish Construction Industry KPIs and is an inclusive
solution to meet the needs of the Industry. It encourages the adoption of performance
measurement by organisations of any size and at any level of the construction supply
chain.
The framework offers three distinct measurement and reporting levels and combines
performance measures in KPI streams. The same KPI streams run through each reporting
level of the Framework and these streams (product, service, quality, cost, time, safety,
environment, people and business) link the Framework together.
Any organisation can use the Framework to progress from one level to the next, with full
support from SCC, to suit their performance measurement requirements and changing
needs.
Terminology
The SCC KPI framework and supporting information uses the following definitions:
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Using KPIs
KPIs are applied in the construction industry to;
provide a simple but robust performance measurement framework to allow an
organisation to understand and demonstrate performance levels
help inform procurement decisions by providing measures other than price
provide performance benchmarks either on a project or across an organisation
provide a standard measurement process for monitoring Partnering and
Framework contracts
provide health checks on performance to support the drive for continuous
improvement
help with marketing
satisfy the requirements of quality management systems such as ISO 9001.
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Implementing KPIs
Best practice suggests there are five steps to ensure the successful implementation of a
robust performance measurement process, which will bring value to your organisation.
Review
Act Measure
Learn Compare
Step 1: REVIEW The vital first step is to review what to measure, but bearing
in mind some golden rules;
keep it simple
keep focused
measure what’s important to your organisation
measure what’s important to your customers.
Step 2: MEASURE Collate together data form existing sources and collect
missing data form new surveys. Gather data from other
organisations as appropriate, e.g. Contractors will need to
use surveys to collect Satisfaction or quality performance
data from clients.
a simple, consistent user friendly approach to
measurement with well documented process &
guidance notes will help gain faith in the results and
promote data provision
collect Comments where possible to support the data
keep an audit trail
use IT to help collect and analyse data.
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Step 3: COMPARE Having collected the data, it is important to analyse &
compare and performance both internally and externally. This
will provide useful benchmarking information.
Step 4: LEARN Learn from the results and provide feedback to those
involved in the data provision and more widely as
appropriate.
Benchmarking
The SCC KPI framework offers organisations a standard set of performance indicators,
which provide a basis for comparison with others in the Scottish construction industry, and
beyond.
The SCC framework will produce a summary of benchmark performance for the industry
on an annual basis.
Benchmark Clubs
A benefit of measuring performance against a common set of performance indicators is
that peer group Benchmarking Clubs can be established, allowing performance
comparison directly between similar organisations.
The SCC framework offers the Scottish construction industry a series of Sector specific
performance improvement clubs each with its own Sector specific measures
The Sectors identified initially are:
Roads
Housing
Health
Education
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Software
An important part of any efficient performance measurement system is the use of IT to
streamline the collection and analysis of the information.
The SCC framework offers members who register with the Scottish Construction Centre
free use of the SCC Performance Improvement software. Visit the SCC website for more
information and to access the software - www.scocon.org
Help Desk
SCC’s help desk will respond to general enquires on performance measurement and
provide direction to the support services available from the Centre.
Specific queries on the application and implementation of performance measurement will
be referred to BSL.
Consultancy Support
SCC can also provide consultancy support to help individual organisations with any part of
their performance measurement process.