Benchmarking Management Practices in the Construction Industry

Ricardo Ramirez R.1, Luiz Fernando Alarcon C.2 & Peter Knights3

1Dept. of Construction Engineering and Management, Universidad Católica de Chile, Escuela de Ingeniería, Casilla 306, Correo 22, Santiago, Chile. E-mail: rramirer@ing.puc.cl
2Professor of Civil Engineering, Dept. of Construction Engineering and Management, Universidad Católica de Chile, Escuela de Ingeniería, Casilla 306, Correo 22, Santiago, Chile. E-mail: lalarcon@ing.puc.cl
3Professor of Civil Engineering, Mining Center, Universidad Católica de Chile, Escuela de Ingeniería,Casilla 306, Correo 22, Santiago, Chile. E-mail:pknights@ing.puc.cl.

Abstract

This paper presents the results of the first application of a management evaluation system for benchmarking management practices in the construction industry. The system supports a National Benchmarking System recently established in the Chilean Construction Industry by incorporating qualitative management aspects in addition to quantative performance indicators. Different analysis were made to determine trends in the industry sector by correlating the qualitative evaluations from surveys with the performance indicators. Thirteen construction companies participated in the initial application of the benchmarking system. A correlation analysis found that safety performance was strongly related to companies having superior planning and control, quality management, cost control and subcontractor management policies. An factor analysis undertaken found that Central office priorities center on strategic management policies having longer term competitive impact, whilst site management emphasizes tactical management dimensions consistent with shorter term impact. There is scope to elevate the profile of continuous improvement initiatives to strategic significance at central 1office level.

Keywords

Qualitative Benchmarking, Management Dimension, Performance Indicators, Management Evaluation System.

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Reference

Ramirez R., R. , Alarcon C., L.F. & Knights, P. 2003, 'Benchmarking Management Practices in the Construction Industry' In:, 11th Annual Conference of the International Group for Lean Construction. Virginia, USA, 1-.

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