Productivity Measurement: An Introduction

Productivity is a frequently discussed topic in the construction industry because productivity improvement translates directly to labor cost savings. A growing consensus among owners and contractors indicates that measuring and monitoring productivity are essential first steps to managing—that is, improving—productivity.

Numerous systems for monitoring and measuring productivity are commercially available, as are many proprietary systems, yet a large number of today’s contractors do not apply these techniques. Key among the reasons for not doing so is an inability or unwillingness to grapple with the complexity and support costs associated with traditional cost-system approaches. Uncoupling productivity measurement from cost measurement can remove obstacles and enhance more universal use.

The barriers that keep many contractors from using productivity measurement management tools are artificial. A simple, targeted, low-overhead system can yield substantially the same management benefits as large, complex systems. Much of this report has been devoted to demonstrating the simplicity, applicability, and viability of such a simple measurement system. The most powerful motivator for broader application of productivity measurement management concepts by contractors is self-interest. Contractors must be convinced that productivity measurement management techniques can increase their profitability.