Performance measurement in the UK construction industry and its role in supporting the application of lean construction concepts

Performance measurement has received substantial attention from researchers and the construction industry over the past two decades. This study sought to assess UK practitioners’ awareness of the importance of the use of appropriate performance measures and its role in supporting the application of Lean Construction (LC) concepts. To enable the study to achieve its objectives, a review of a range of measurements developed to evaluate project performance including those devoted to support LC efforts was conducted. Consequently a questionnaire survey was developed and sent to 198 professionals in the UK construction industry as well as a small sample of academics with an interest in LC. Results indicated that although practitioners recognise the importance of the selection of non-financial performance measures, it has not been properly and widely implemented. The study identified the most common techniques used by UK construction organisations for performance measurement, and ranked a number of non-financial key performance indicators as significant. Some professed to have embraced the Last Planner System methodology as a means for performance measurement and organisational learning, while further questioning suggested otherwise. It was also suggested that substance thinking amongst professionals could be a significant hidden barrier that militates against the successful implementation of LC.

[1]  Lauri Koskela,et al.  Application of the New Production Philosophy to Construction , 1992 .

[2]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[3]  Alfredo Serpell,et al.  Performance Measuring Benchmarking, and Modelling of Construction Projects , 1996 .

[4]  Andy Neely,et al.  Performance measurement system design: Should process based approaches be adopted? , 1996 .

[5]  Daniel T. Jones,et al.  STRATEGIC APPLICATION OF LEAN THINKING , 1998 .

[6]  Carlos T. Formoso,et al.  Improving Performance Through Measurement: The Application of Lean Production and Organisational Learning Principles , 2000 .

[7]  Umit Bititci,et al.  Quantitative models for performance measurement system , 2000 .

[8]  Luis F. Alarcón,et al.  Learning From Collaborative Benchmarking in the Construction Industry , 2001 .

[9]  Gregory A. Howell,et al.  Performance Improvement Programs and Lean Construction , 2001 .

[10]  Luis F. Alarcón,et al.  COLLABORATIVE IMPLEMENTATION OF LEAN PLANNING SYSTEMS IN CHILEAN CONSTRUCTION COMPANIES , 2002 .

[11]  J. Rooke,et al.  The claims culture: a taxonomy of attitudes in the industry , 2003 .

[12]  P. Williamson,et al.  Design and analysis of pilot studies: recommendations for good practice. , 2004, Journal of evaluation in clinical practice.

[13]  Albert P.C. Chan,et al.  Exploring Critical Success Factors for Partnering in Construction Projects , 2004 .

[14]  Dayana Bastos Costa,et al.  Performance Measurement Systems for Benchmarking in the Construction Industry , 2004 .

[15]  J. Rooke,et al.  Planning for claims: an ethnography of industry culture , 2004 .

[16]  N. S. Rebello,et al.  Students' models of Newton's second law in mechanics and electromagnetism , 2003, physics/0308109.

[17]  A. Akintoye,et al.  PERFORMANCE INDICATORS FOR SUCCESSFUL CONSTRUCTION PROJECT PERFORMANCE , 2005 .

[18]  Todd Zabelle,et al.  Implementing Lean in Construction: How to Succeed , 2006 .

[19]  N. Dawood,et al.  DEVELOPMENT OF KEY PERFORMANCE INDICATORS TO ESTABLISH THE BENEFITS OF 4D PLANNING , 2006 .

[20]  Nashwan Dawood,et al.  DEVELOPMENT OF KEY PERFORMANCEINDICATORS TO ESTABLISH THE BENEFITS OF 4DPLANNING , 2006 .

[21]  Eric Johansen,et al.  Lean Construction: Prospects for the German construction industry , 2007, Lean Construction Journal.

[22]  Albert P.C. Chan,et al.  Benchmarking the performance of design‐build projects: Development of project success index , 2007 .

[23]  Sai S. Nudurupati,et al.  Performance measurement in the construction industry: An action case investigating manufacturing methodologies , 2007, Comput. Ind..

[24]  Chang-Duk Kim,et al.  PERFORMANCE INDICATORS BASED ON TFV THEORY , 2007 .

[25]  Lauri Koskela,et al.  Producing things or production flows? Ontological assumptions in the thinking of managers and professionals in construction , 2007 .

[26]  Charles Egbu,et al.  A LEAN STRATEGY TO PERFORMANCE MEASUREMENT – REDUCING WASTE BY MEASURING ‘ NEXT ’ CUSTOMER NEEDS , 2008 .

[27]  Joseph Oladiran Olatunji Lean-in- Nigerian Construction: State, Barriers, Strategies and “Go-Togemba” Approach , 2008 .

[28]  Sepani Senaratne,et al.  Lean Construction as a Strategic Option: Testing its Suitability and Acceptability in Sri Lanka , 2008, Lean Construction Journal.

[29]  Min-Yuan Cheng,et al.  Construction management process reengineering performance measurements , 2009 .

[30]  Iris D. Tommelein,et al.  Is the Last Planner System Applicable to Design? A Case Study , 2009 .

[31]  Alan Mossman,et al.  Why isn't the UK construction industry going lean with gusto? , 2009 .

[32]  Mohammad,et al.  Towards Producing Best Practice in the Malaysian Construction Industry : The Barriers in Implementing the Lean Construction Approach , 2009 .

[33]  Alan Mossman,et al.  Creating value: a sufficient way to eliminate waste in lean design and lean production , 2009 .

[34]  Luis F. Alarcón,et al.  Improving Planning Reliability and Project Performance using the Reliable Commitment Model. , 2010 .

[35]  Wu Peng,et al.  Lean production, value chain and sustainability in precast concrete factory - a case study in Singapore , 2011 .

[36]  A. A. Karasneh,et al.  Impact of IT- Balanced Scorecard on Financial Performance: An Empirical Study on Jordanian Banks , 2012 .

[37]  J. Keiser Leadership and Cultural Change: Necessary Components of a Lean Transformation , 2012 .

[38]  Bjørn Andersen,et al.  Lean Construction Practices and its Effects: A Case Study at St Olav’s Integrated Hospital, Norway , 2012 .

[39]  P. Edwards,et al.  Perceptions of Time, Cost and Quality Management on Building Projects , 2012 .

[40]  Saad Sarhan,et al.  Trends and Challenges to the Development of a Lean Culture Among Uk Construction Organisations , 2012 .

[41]  Rafael Sacks,et al.  Modern Construction: Lean Project Delivery and Integrated Practices , 2013 .