Envelopment methodology to measure and compare subcontractor productivity at the firm level
El-Mashaleh, Mohammad, O’Brien, William J. and London, Kerry 2001, Envelopment methodology to measure and compare subcontractor productivity at the firm level, in IGLC-9 : 9th International Group for Lean Construction Conference : proceeding of the Ninth International Group for Lean Construction Conference, Professional Activities Centre, Faculty of Engineering, National University of Singapore, Singapore, pp. 1-17.
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This paper describes a conceptual approach to measure and compare productivity of resource utilization at the firm level, adapting a set of techniques known as Data Envelopment Analysis (DEA). Within this approach, the paper addresses the issues of multiple inputs and multiple outputs of a construction firm, level of detail for data collection, and the required transformations to correct for differences among projects. In particular, we focus on the resource management of subcontractors. Subcontractors manage multiple, concurrent projects and must allocate limited resources across these projects. Interaction between projects and resource allocation creates non-linear effects, and therefore the productivity of the firm is not simply the productivity of its projects. The proposed measurement methodology will allow assessment of the impact of different management policies (including many of those proposed by lean construction researchers) on firm performance. It is hoped that this novel approach to productivity measurement will help subcontractors identify efficient practices and superior management policies, and will promote adoption of these policies.
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Field of Research
120201 Building Construction Management and Project Planning
Socio Economic Objective
970112 Expanding Knowledge in Built Environment and Design
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