Ranking of Indicators in Measuring Performance of Building Construction Companies in the Philippines

Transcription

1 Ranking of Indicators in Measuring Performance of Building Construction Companies in the Philippines A Thesis Presented to Faculty of Civil Engineering College of Engineering, Architecture and Technology De La Salle University Dasmariñas Dasmariñas, City In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Civil Engineering Francis Michael G. Osis Nacthial Neil C. Petalio April V. Uy October 2014

2 TABLE OF CONTENTS Title Page Table of Contents. iii Abstract. vi Acknowledgement... vii Chapter 1: The Problem and Its Background 1.1 Introduction Statement of the Problem Objective of the Study Significance of the Study Scope and Limitation Conceptual Framework Definition of Terms 6 Chapter 2: Review of Related Literature 2.1 Background on Benchmarking Benchmarking in the Construction Industry Classification of Performance Indicators in Construction Industry Key Performance Indicators Project Management Process Groups Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communication Management Project Risk Management Project Procurement Management Project Stakeholder Management Strength, Weaknesses, Opportunities, and Threats Analysis iii

3 2.5.1 SWOT Analysis in Construction Industry Strength Weaknesses Opportunities Threats SWOT Diagram Chapter 3: Methodology 3.1 Performance Indicators and Questionnaire Design Sample Size Focus Group Discussion Defining Benchmark Data Analysis Statistical Treatment SWOT Analysis Chapter 4: Presentation, Interpretation, and Analysis of Data 4.1 Characteristic of Respondents Extent Application of KPI s and Benchmarking KPI s and Benchmarking Application Ranking of Performance Indicators SWOT Analysis Results Chapter 5: Summary, Conclusion and Recommendation 5.1 Summary of Findings Conclusion Recommendations Reference List of Figures 1.1 Study Framework Basic SWOT Diagram Methodological Framework...,.27 iv

4 List of Tables 2.1 Summary of Available Previous Studies on Performance Indicators at Project Level Summary of Available Previous Studies on Performance Indicators at Company Level Ranking of Performance Indicators (contractors) Ranking of Performance Indicators (clients)...,, Contractor and Clients relation Ranking of Performance Indicators SWOT Analysis (Megaworld Corporation) SWOT Analysis (MDC) SWOT Analysis (EEI Corporation) SWOT Analysis (Yamega) SWOT Analysis (Sy 2 & Associates INC.) SWOT Analysis (Teodoro Construction Corporation) SWOT Analysis (SMDC) SWOT Analysis (J.R. Gandia Construction) SWOT Analysis (Rchitects Inc.) SWOT Analysis (MGS Construction Inc.) List of Equations Appendices Appendix A: Letters Appendix B: Sample Survey Form Used Appendix C: Photo Documentation Appendix D: Certification v

5 ABSTRACT In the Philippines, a few previous efforts have been done to identify indicators that can be used to measure the performance of construction projects and to determine what is critical and what needs improvement. Only a few insights are provided into the overall performance of the firms. Therefore, a set of KPIs that can be used to measure the performance of an organization or be considered as a basis for benchmarking is lacking. This paper aimed to identify a set of KPIs that can be implemented by construction executives in measuring the performance at the company level in the Philippines. Lists of potential performance indicators were identified through literature review. A survey and SWOT Analysis were conducted on a randomly selected sample of large construction firms in the Philippines. The statistical analysis of the collected responses was provided in a ranked system of 8 significant KPIs. Findings indicate that the traditional financial measures can no more be the sole determinant of a firm s success. Other performance indicators such as external customer satisfaction, safety, business efficiency, and effectiveness of planning are increasingly becoming important. The result of the study is a set of KPIs that can be useful as a first step in developing a national benchmarking system for enhancing the performance of construction firms in the Philippines. vi

6 ACKNOWLEDGEMENT In line with our research study entitled Ranking of Indicators in Measuring Performance of Building Construction Companies in the Philippines, we would like to thankfully acknowledge the people behind our thesis preparations. Our thesis adviser, Engr. Arnaldo C. Reyes, who patiently and constantly provided us with strategies and additional information on how to deal with our study; Our dearest subject instructors, Engr. Francis F. Villareal and Engr Ma. Cristina A. Macawile, for their endless guidance and instructions; Our panel board members: Engr. Francis F. Villareal, Engr. Francisco P. Puazo Jr., and especially the Chairman of panel, Engr. Dolphy F. Fadriquela. They gave constructive comments which helped us to pursue more in the development of research; The staff personnel from CIAP, Megaworld Corp., MDC, SMDC, EEI Corp., Yamega, Sy2 & Assoc., TCC, J.R. Gandia Const., Rchitect Inc., MGS Const., and DOA, who contributed informative/useful data and provided assistance to us during site inspections; Our statistician, John Michael Petalio, who helped us in the stochastic analysis process which was very vital with our detailed analysis of key performance Indicators; Angella Maylad and Josephine T. Reyes who helped us distribute questionnaires to collect data/information. Our co-students, friends, family and especially our parents who exerted all their efforts to provide meaningful experience that eased the hardships in doing the research; and Lastly, the God above who gave us wisdom and all the blessings that truly helped us to fulfill our duties and responsibilities. Animo La Salle! vii