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Performance measurement in construction logistics

International Journal of Production Economics
Publication Date
DOI: 10.1016/s0925-5273(00)00034-7
  • Performance Measurement
  • Measuring Tools
  • Logistics
  • Construction Industry


Abstract The need for performance measurement systems is imminent in the construction firms. Construction firms have many simultaneously ongoing construction projects, from which the relevant performance information is needed. There are also tens of material groups and subcontractors, whose performance should be monitored together with construction firms’ practices. In addition to monitoring, performance measures can also be used as a basis for progressive improvement of company productivity. In this paper, a new framework is introduced for measuring construction logistics. It is a two-dimensional model where measures are grouped by the use of measures and by the focus of measures. The first dimension of the classification; use of measures contains two kinds of measures. The first measures, called improvement measures, help construction industry to find out the problems with current practices. These measures are mainly used during development projects. The second measures, called monitoring measures, are used for continuous monitoring of operations. These measures are vital, because both firms’ top management and operational managers need continuous feedback on operational activities. The second dimension of the framework is the focus of measures. It clarifies at which organisational level measures can be used. There should be information available at the company and project level, as well as at the specific supplier or subcontractor level. The paper presents concrete measurement experience gathered from a number of practical cases. It illustrates examples of both improvement and monitoring measurement results.

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