Introduction to

Construction
Productivity
by Dr. Ayman Gouda
 Contents:
 Significance of Construction Productivity
 Construction Process
 Construction Process Outputs
 Construction Process Inputs
 Totally consumed resources and
 Partially consumed resources
 Basics and Terms related to productivity
 Product
 Production
 Production rate
 Usage rate
 Significance of Productivity:
• To realize Construction project objectives, planned levels of
productivity must be achieved.

• Productivity and quality are the two major driving forces behind the
Construction Engineering discipline.
• Productivity is one of the ,most essential KPIs for any organization
e.g.. Project, Company, Industry or nation).
 Significance of Productivity:
• Improving Productivity at the national level will lead to
The survival and growth of any organization, industry, or nation.
Paving the way for firms to pay higher wages.
Making more people buy goods and services because they get
better value for money. So, increasing the country’s ability to
improve the quality of life over time.
Reducing waste and seeing resources used more efficiently.
Solving many economic problems such as inflation,
unemployment, and unstable currency.
 Construction Process
Construction processes require INPUTS. The inputs are used in the
PROCESS of producing the construction OUTPUTS/PRODUCTS.

PROCESS: set of interrelated or interacting activities that use inputs to

deliver an intended output.

OUTPUT: result of a process. Examples of outputs are the number of m3

of concrete, m2 of painting, housing unit, and km of the base layer of the
highway.

INPUTS can be classified into

 Totally consumed resources and
 Partially consumed resources.
 Construction Process
 Outputs of Construction Process
At the higher level, the outputs of construction process may be
classified into three sectors: buildings, infrastructure and
industrial facilities.
1) Buildings are usually further divided into residential and
non-residential (commercial/institutional).
2) Infrastructure refers to the fundamental facilities and
systems serving a country, city, or other area. Infrastructure is
often called heavy civil or heavy engineering that includes
large public works, dams, bridges, highways, railways, water
or wastewater and utility distribution.
3) Industrial facilities includes refineries, power generation,
mills and manufacturing plants.
There are also other ways to break the industry into sectors or markets.
 Outputs of Construction Process
• Levels of outputs for the Construction Process :
 Construction Process Inputs
Totally consumed resources:
 They are resources that are used and totally consumed to execute the
project and cannot be used in other projects.
 Typical resources of this type are man-hours, energy, project drawings and
specification, construction material like sand, cement, and mortar.

Partially consumed resources

 They are resources that have a residual value that is comparable to, but
less than, their original value.
 Their value is replenished by activities such as maintenance and repair.
 Typical resources of this type are plant (concrete batch plant), construction
equipment (e.g. loader, crane, and concrete pump), temporary materials
(e.g., formworks, and scaffolding), tools (e.g., rebar cutting scissors,
wheelbarrows, and vibrators), and temporary facilities (e.g., worker camps,
site offices, and storage buildings).
 Construction Inputs:
 Construction Inputs:
 Basics and Terms related to productivity
Product:
Result (output) of a process (e.g. m3 of concrete, km of highway
base layer, and a housing unit).
Production:
Activity (process) of producing goods and/or services.
Production = Quantity of output produced
Production rate (Output rate):
Quantity of outputs produced per unit of time.
Production rate = Quantity of Output / Time
(e.g. production rate of pouring concrete = 150 m3/day,
production rate of internal plastering = 50 m2 per day).
 Basics and Terms related to productivity
 The Production Rate of any process is based on the
estimated/actual process Cycle Time and the Quantity achieved
per cycle.

 Cycle Time is the period required to complete on cycle of an

operation.

Daily Production Rate = Daily Number of Cycles * Capacity per Cycle

Usage rate (Unit rate):

The time needed to produce one unit of output (e.g. 2 hrs./m2).
Usage rate = 1 / Output rate
 Basics and Terms related to productivity
Question:
Bulldozer #224 moved 87 tons of material during the five days
ending September 22. Workdays were eight hours each.
Calculate the production rate and the unit rate of Bulldozer
#224.
Solution:
Average production rate = output / time
= 87 / 5 = 17.4 ton/day.
= 87 / 40 = 2.175 tons/hour.
Average unit rate = time / output
= 40 / 87 = 0.46 hour / ton.
 Uses of Production Rates/ Unit Rate:
 What is Productivity
• Productivity: The efficient utilization of resources (inputs) in
producing goods and/or services (outputs).

𝒐𝒖𝒕𝒑𝒖𝒕
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 =
𝑰𝒏𝒕𝒑𝒕

𝑸𝒖𝒂𝒏𝒕𝒊𝒕𝒚 𝒐𝒇 𝒐𝒖𝒕𝒑𝒖𝒕𝒔 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅

𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 =
𝑸𝒂𝒏𝒕𝒊𝒕𝒚 𝒐𝒇 𝑰𝒏𝒕𝒑𝒕𝒔 𝑪𝒐𝒏𝒔𝒎𝒆𝒅

• Productivity: The relationship of the amount of outputs

produced, that are usable, salable, and of acceptable quality, by
a given system during a given period of time, and the quantity of
resources consumed (inputs) to create or produce those
outputs over the same period of time.
 Definition of Quality
Quality: degree to which a set of inherent characteristics of an object
fulfils requirements (ISO 9000/2015).

Object: e.g. product, system, process,…

Requirements: need or expectation that is stated, generally implied

or obligatory.
 Stated requirements are needs/ expectations that are stated in a document.

 “Generally implied” means that it is custom or common practice for the

organization and interested parties that the need or expectation under
consideration is implied.
‫‪ Definition of Quality‬‬
‫𝒔𝒄𝒊𝒕𝒔𝒊𝒓𝒆𝒕𝒄𝒂𝒓𝒂𝒉𝑪‬
‫= 𝒕𝒄𝒆𝒋𝒃𝑶 𝒏𝒂 𝒇𝒐 𝒚𝒕𝒊𝒍𝒂𝒖𝑸‬
‫𝒔𝒏𝒐𝒊𝒕𝒂𝒄𝒊𝒇𝒊𝒄𝒆𝒑𝑺‪𝑹𝒆𝒒𝒊𝒓𝒆𝒎𝒆𝒏𝒕𝒔/‬‬
‫مثال‪ :‬متطلبات ‪ /‬مواصفات‬
‫بالمتر المكعب توريد ومصنعيات أعمال خرسانة مسلحة لزوم االعمدة الخرسانية بالمنشأ باألبعاد‬
‫واألعماق المحددة بالرسومات وعلى المناسيب المحددة بالرسومات والخرسانة مكونة بنسبة ‪0.8 m3‬‬
‫زلط ‪ 0.4m3 +‬رمل ‪ 350 +‬كجم على األقل أسمنت بورتالندى عادى مع نسبة المياه الالزمة للخلط‬
‫الميكانيكي بحيث تحقق نسبة األسمنت مع نسب وتدرج الركام الكبير والصغير جهد الكسر المطلوب‬
‫وقدرة ‪ 300‬كجم ‪ /‬سم ‪ 2‬بعد ‪ 28‬يوم والفئة تشمل توريد ومصنعيات حديد التسليح طبقا لألنواع‬
‫واألقطار المطلوبة والمقررة في الرسومات والفئة محمل عليها أعمال الشدات الخشبية والفرم التي‬
‫تشكل القطاعات المطلوبة ويتم خلط الخرسانة ميكانيكيا والدمك بالهزازات الميكانيكية والمعالجة بعد‬
‫الصب حتى يتم فك الشدات والبند محمل عليه عمل االختبارات الالزمة وجميع ما يلزم لنهو البند كامال‬
‫على أن يتم التنفيذ طبقا ألصول الصناعة والمواصفات ورسومات المشروع وتعليمات المهندس‬
‫المشرف ‪.‬‬
‫ما هي خصائص المنتج؟؟؟‬
 Productivity and Quality
When a rework has to be performed, it means that a company
has one output unit while having to consume the inputs or
resources at least twice. It shows productivity decline. The
similar argument can be made for replacements, returns, and
rejects.
Because of waste consideration, current practices in measuring
productivity have included quality. Both terms are widely
recognized today for their interrelationships. If quality is lower
(more rejects, rework, and returns), it consequently indicates
the lower level of productivity and higher unit cost of products.
In addition to the “R” terms, the wastes sometimes include the
inventory as a result of overproduction, the delay and waiting
time, and the unnecessary motions of staffs and employees (for
more information, read about lean construction)
 Productivity and Quality
 Productivity and Quality
  Improving Productivity
Rule 1:
“An increased production (rate) does not necessarily mean increased
productivity.”

Rule 2:
To improve productivity, we must produce More Achievement per same or
fewer Resources
To remain competitive, we have to produce more for each pound spent on
construction. And every worker, every level, and every process in the
organization and at a job site can contribute to improved productivity.
“Productivity is about ‘working smarter’, rather than ‘working harder’: it reflects our ability to
produce more output by better combining inputs, thanks to new ideas, technological
innovations and new business models.”
 Example: Difference between Production rate and Productivity
• Case 1:
Suppose that at construction site installed10,000m2 of
block woks by employing 50 workers at 8 hours/day for
25 days/month. What are the production, production rate,
and (labor) productivity?
 Example: Difference between Production rate and Productivity
• Case 1:
Suppose that at construction site installed10,000m2 of
block woks by employing 50 workers at 8 hours/day for
25 days/month. What are the production, production rate,
and (labor) productivity?
Solution:
Then, in this case:
Production = 10,000 m2
Production rate = 10,000 m2 / month
Labor productivity = total output / labor input
= 10,000 / (50 * 25 * 8)
= 1 m2 / 1 man-hr
 Example: Difference between Production rate and Productivity
• Case 1:
Suppose this construction site increased its production to 12,000 m2 by
hiring 10 additional workers at 8 hours/day for 25 days. What are the
production, production rate, and (labor) productivity?
 Example: Difference between Production rate and Productivity
• Case 2:
Suppose this construction site increased its production to 12,000 m2 by hiring
10 additional workers at 8 hours/day for 25 days. What are the production,
production rate, and (labor) productivity?

Solution:
Then, in this case:
Production = 12,000 m2
Production rate = 12,000 m2 / month
Labor productivity = total output / labor input
= 12,000 / (60 * 25 * 8)
= 1 m2 / 1 man-hr.

Clearly, the production rate of block works has gone up by 20% (from 10,000 to
12,000 m2 / month), but the labor productivity has not gone up at all.
 Example: Difference between Production rate and Productivity
• Case 3:
Suppose this construction site increased its production to 15,000 m2 by
hiring 30 additional workers at 8 hours/day for 25 days. What are the
production, production rate, and (labor) productivity?
 Example: Difference between Production rate and Productivity
• Case 3:
Suppose this construction site increased its production to 15,000 m2 by hiring
30 additional workers at 8 hours/day for 25 days. What are the production,
production rate, and (labor) productivity?

Solution:
Then, in this case:
Production = 15,000 m2
Production rate = 15,000 m2 / month
Labor productivity = total output / labor input
= 15,000 / (90 * 25 * 8)
= 0.83 m2 / 1 man-hr.

Clearly, the production rate of block works has gone up by 50% (from 10,000 to
15,000 m2 / month), but the labor productivity has down by 20%.
 Example: Difference between Production rate and Productivity
• Case 3:
Suppose this construction site increased its production to 15,000 m2 by hiring
30 additional workers at 8 hours/day for 25 days. What are the production,
production rate, and (labor) productivity?

Solution:
Then, in this case:
Production = 15,000 m2
Production rate = 15,000 m2 / month
Labor productivity = total output / labor input
= 15,000 / (90 * 25 * 8)
= 0.83 m2 / 1 man-hr.

Clearly, the production rate of block works has gone up by 50% (from 10,000 to
15,000 m2 / month), but the labor productivity has down by 20%.
 Example 1 (Tutorial)
By reviewing the performance of a construction site, it as fond that a painting
team of three workers had produced 40 m2 of painting work. Owing to
increased demand, it was found necessary to increase output. The team
was increased to four men who produced 50 m2 per day. The operation was
studied, and by using an improved method, the four workers can now
produce 70 m2 per day. Calculate the operation’s output rate and labor
productivity in the three cases.
 Example 1 (Tutorial)
Case (1)
Operation’s output rate = 40 m2 / day
Labor productivity = 40 m2 / (3 * 8) = 1.67 m2 /man-hr

Case (2)
Operation’s output rate = 50 m2 / day
Labor productivity = 50 m2 / (4 * 8) = 1.56 m2 /man-hr.

Case (3)
Operation’s output rate = 70 m2 / day
Labor productivity = 70 m2 / (4 * 8) = 2.19 m2 /man-hr.

In case (2), the production rate has risen, but labor productivity has fallen.
In case (3), the production rate and labor productivity have increased.
 Example 2 (Tutorial)
In the first four days of erecting interior walls of a school building, a masonry
team of three workers produced 100 m2 of brick work. Owing to owner's
need to shorten activity duration, the contractor decided to increase output.
One mason was hired and added to the team. The team (four workers)
produced 40 m2 in the fifth day. The site engineer studied the operation and
by using an improved method, the four workers produced 90 m2 in the last
two days (sixth and seventh) of the operation.
a) For the above-mentioned three cases, determine the hourly
production rate.
b) For the above-mentioned three cases, determine the unit rate.
c) For the above-mentioned three cases, calculate the labor productivity.
  Improving Productivity
Rule 1:
“An increased production (rate) does not necessarily mean increased
productivity.”
Rule 2:
To improve productivity, we must produce More Achievement per same or
fewer Resources
To remain competitive, we have to produce more for each pound spent on
construction. And every worker, every level, and every process in the
organization and at a job site can contribute to improved productivity.

“Productivity is about ‘working smarter’, rather than ‘working harder’: it reflects our ability to
produce more output by better combining inputs, thanks to new ideas, technological
innovations and new business models.”
 Improving Productivity
Productivity improvements will occur if any of the following conditions
are made to exist:

𝒐𝒖𝒕𝒑𝒖𝒕
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 =
𝑰𝒏𝒕𝒑𝒕

1. Output increases, input decreases (output up / input down);

2. Output increases, input remains the same (output up / input
consistent);
3. Output increases, input increases but at a lower rate (output up /
input up);
4. Output remains constant, input decreases (output constant / input
down); and
5. Output decreases, input decreases but at a more rapid rate (output
down / input down).
 Improving Productivity
 Example 2 (Tutorial)
In the first four days of erecting interior walls of a school building, a masonry
team of three workers produced 100 m2 of brick work. Owing to owner's
need to shorten activity duration, the contractor decided to increase output.
One mason was hired and added to the team. The team (four workers)
produced 40 m2 in the fifth day. The site engineer studied the operation and
by using an improved method, the four workers produced 90 m2 in the last
two days (sixth and seventh) of the operation.
a) For the above-mentioned three cases, determine the hourly
production rate.
b) For the above-mentioned three cases, determine the unit rate.
c) For the above-mentioned three cases, calculate the labor productivity.
 Efficiency Definition
1. The ability to avoid wasting materials, energy, efforts, money, and time in doing
something or in producing a desired result.
𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆𝒔
𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 = to produce output
𝑨𝒄𝒕𝒖𝒂𝒍 𝑪𝒐𝒏𝒔𝒎𝒆𝒅 𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆𝒔

𝑷𝒍𝒂𝒏𝒏𝒆𝒅 / 𝑬𝒙𝒑𝒆𝒄𝒕𝒆𝒅 𝑪𝒐𝒔𝒕𝒔

𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 = to produce output
𝑨𝒄𝒕𝒖𝒂𝒍 𝑪𝒐𝒔𝒕𝒔

2. The ability to do things well (right), successfully, and without waste.

3. Relationship between the result achieved and the resources used (ISO 9000/2015).
According to this definition efficiency ≈ productivity
4. The ratio of actual output attained to expected or standard output.

Example: The output of an operator is 120 pieces per hour while the standard rate is 180
pieces per hour:
Operator efficiency = 120/180 = 66.7%
 Effectiveness Definition
1. The degree to which planned objectives are achieved.
𝑨𝒄𝒕𝒖𝒂𝒍 𝑹𝒆𝒔𝒖𝒍𝒕𝒔 𝑨𝒄𝒕𝒖𝒂𝒍 𝑶𝒖𝒕𝒑𝒖𝒕𝒔
𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆𝒏𝒆𝒔𝒔 = =
𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑹𝒆𝒔𝒖𝒍𝒕𝒔𝒔 𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑶𝒖𝒕𝒑𝒖𝒕𝒔

𝑨𝒄𝒕𝒖𝒂𝒍 𝑨𝒄𝒉𝒊𝒆𝒗𝒆𝒅 𝑶𝒃𝒆𝒄𝒕𝒊𝒗𝒆𝒔

𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆𝒏𝒆𝒔𝒔 =
𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑶𝒃𝒆𝒄𝒕𝒊𝒗𝒆𝒔

2. Extent to which planned activities are realized and planned results

achieved (ISO 9000/2015).
3. In contrast to efficiency, effectiveness is determined without
reference to costs and, whereas efficiency means "doing the thing
right," effectiveness means "doing the right thing.“
4. Effectiveness reflects how well a set of results is accomplished
(quality, schedule,……).
 Relationship between Efficiency, Effectiveness and Productivity
 Highest Construction Productivity
The American Society of Civil Engineers (ASCE) defines the
highest construction productivity as “converting all productive
elements input(s) into output in order to deliver a quality
construction product, achieve maximum cost effectiveness,
through the maximum efficient use of resources.”

𝑨𝒄𝒕𝒖𝒂𝒍 𝑹𝒆𝒔𝒖𝒍𝒕𝒔 𝑨𝒄𝒕𝒖𝒂𝒍 𝑶𝒖𝒕𝒑𝒖𝒕𝒔

 𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆𝒏𝒆𝒔𝒔 = =
𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑹𝒆𝒔𝒖𝒍𝒕𝒔𝒔 𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑶𝒖𝒕𝒑𝒖𝒕𝒔

𝑨𝒄𝒕𝒖𝒂𝒍 𝑨𝒄𝒉𝒊𝒆𝒗𝒆𝒅 𝑶𝒃𝒆𝒄𝒕𝒊𝒗𝒆𝒔

 𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆𝒏𝒆𝒔𝒔 =
𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑶𝒃𝒆𝒄𝒕𝒊𝒗𝒆𝒔

𝑷𝒍𝒂𝒏𝒏𝒆𝒅 𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆𝒔
 𝑪𝒐𝒔𝒕𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆𝒏𝒆𝒔𝒔 =
𝑨𝒄𝒕𝒖𝒂𝒍 𝑪𝒐𝒏𝒔𝒎𝒆𝒅 𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆𝒔

𝑷𝒍𝒂𝒏𝒏𝒆𝒅 / 𝑬𝒙𝒑𝒆𝒄𝒕𝒆𝒅 𝑪𝒐𝒔𝒕𝒔

 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 = to produce output
𝑨𝒄𝒕𝒖𝒂𝒍 𝑪𝒐𝒔𝒕𝒔
 Effects of improving Productivity
 Productivity and Cost
 Consequences of Declining Productivity
 PRODUCTIVITY IMPROVEMENT CYCLE
To continually improve construction productivity four formal
phases known as “Plan-Do-Check-Act” (PDCA) should be
applied:
 Plan: Establish the objectives, processes, methods, resources
and procedures necessary to deliver results in accordance with
customer requirements and the organization’s policies.
 Do: Implement the processes.
 Check: Monitor, measure, compare and analysis processes
and product against policies, objectives and requirements for
the product and report the results.
 Act: Take actions to continually improve process performance.
 PRODUCTIVITY IMPROVEMENT CYCLE
 Framework for Productivity Improvement in Construction