Investigating the Relationship Between Planning Reliability and Project Performance

Vecente Gonzalez1, Luis F. Alarcon2 & Fenando Mundaca3

1M. Eng., Ph. D. Candidate, Escuela de Ingeniería, Pontificia Universidad Católica de Chile, Casilla 306, Correo 22, Santiago, Chile. Lecturer, Escuela de Ingeniería de la Construcción, Universidad de Valparaíso, Chile. E-Mail: vagonzag@puc.cl
2Professor of Civil Engineering, Escuela de Ingeniería, Pontificia Universidad Católica de Chile, Casilla 306, Correo 22, Santiago, Chile. E-Mail: lalarcon@ing.puc.cl
3Field Engineer, Integrated Project Management, Schlumberger. E-Mail: mundaca@slb.com

Abstract

Variability is an endemic problem in construction projects, which leads to the general deterioration of their performance. During the last decade the Last Planner System (LPS™) has been increasingly applied in construction projects to improve planning reliability as a strategy to increase the project performance. LPS™ promotes a series of actions and methods to increase planning reliability, monitoring the Percentage of Plan Completed (PPC) in a short term planning period. Nevertheless, there is limited evidence studying properly the relationship between planning reliability and project performance. In this paper, the authors developed a detailed research in a home building project analyzing this relationship at activity and project level, in order to understand how changes of planning reliability levels impact over project performance during construction phase. For doing so, two indexes are proposed: A planning reliability index activity-based called Process Reliability Index (PRI), and an aggregated labour productivity index project-based called Project Productivity Index (PPI). At activity level, activity performance indicators are compared with PRI. At project level, PPI is compared with PPC as a project planning reliability index. Statistical analyses for both levels were conducted showing positive and robust trends to improve performance when planning reliability is increased.

Keywords

Last Planner, Variability, Project Performance, Planning Reliability.

Files

Reference

Gonzalez, V. , Alarcon, L.F. & Mundaca, F. 2007, 'Investigating the Relationship Between Planning Reliability and Project Performance' In:, Pasquire, C.L, C.L. & Tzortzopoulos, P., 15th Annual Conference of the International Group for Lean Construction. East Lansing, Michigan, USA, 18-20 Jul 2007. pp 98-108

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