An analysis of construction productivity in Malaysia

The construction industry is an industry of major strategic importance. Its level of productivity has a significant effect on national economic growth. Productivity indicators are examined. The indicators consist of labour productivity, capital productivity, labour competitiveness, capital intensity and added value content of data, which are obtained from the published census/biannual surveys of the construction industry between the years 1999 and 2011 from the Department of Statistics of Malaysia. The results indicated that there is an improvement in the labour productivity, but the value-added content is declining. The civil engineering and special trades subsectors are more productive than the residential and non-residential subsectors in terms of labour productivity because machine-for-labour substitution is a more important process in those subsectors. The capital-intensive characteristics of civil engineering and special trade works enable these subsectors to achieve higher added value per labour cost but not the capital productivity. The added value per labour cost is lower in larger organizations despite higher capital productivity. However, the capital intensity is lower and unit labour cost is higher in the larger organizations.

Economic development and construction productivity in Malaysia

The productivity of the construction industry has a significant effect on national economic growth. Gains from higher construction productivity flow through the economy, as all industries rely on construction to some extent as part of their business investment. Contractions and expansions of economic activity are common phenomena in an economy. Three construction cycles occurred between the years 1970 and 2011 in Malaysia. The relationships between construction productivity and economic development are examined by the partial correlation method to establish the underlying factors driving the change in construction productivity. Construction productivity is statistically significantly correlated with gross domestic product (GDP) per capita in a positive direction for the 1985–98 and 1998–2009 cycles, but not the 1970–85 cycle. Fluctuations in construction activities and the influx of foreign workers underlie the changes of construction productivity in the 1985–98 cycle. There was less fluctuation in construction activities in the 1998–2009 cycle, with changes being mainly due to the fiscal stimulation policies of the government in attempting to stabilize the economy. The intensive construction of mega-projects resulted in resource constraints and cost pressures during the 1980s and 1990s. A better management of the ‘boom-bust’ nature of the construction business cycle is required to maintain the capability and capacity of the industry.

An input-output table perspective on measuring construction productivity

In the field of construction economics, input-output analysis based studies' have attracted a lot of interest from the academics and researchers. The wide efforts are to carry out analyses and comparisons of economic indicators in construction sectors across countries and years. There has been little research modelling the construction productivity using input-output tables. This research takes advantage of the input-output analysis to develop a perspective for determining the productivity of an industrial sector. The developed quantitative formulas are fully based on the economic indicators generated from an input-output table. Using the newly published OECD input-output database, historical analyses and comparisons are carried out to indicate the differences of prod uctivi ties of the construction sectors in Australia and Japan.

Economic fluctuations and productivity in the Malaysian construction sector

Growth in productivity is the key determinant of the long-term health and prosperity of an economy. The construction industry being one of major strategic importance, its productivity performance has a significant effect on national economic growth. The relationship between construction output and economy has received intensive studies, but there is lack of empirical study on the relationship between construction productivity and economic fluctuations. Fluctuations in construction output are endemic in the industry. In part they are caused by the boom and slump of the economy as a whole and in part by the nature of the construction product. This research aims to uncover how the productivity of construction sector is influenced in the course of economic fluctuations in Malaysia. Malaysia has adopted three economic policies – New Economic Policy (1971-1990), National Development Policy (1991-2000) and the National Vision Policy (2001-2010) since gaining independence in 1959. The Privatisation Master Plan was introduced in 1991. Operating within this historical context, the Malaysian construction sector has experienced four business cycles since 1960. A mixed-method design approach is adopted in this study. Quantitative analysis was conducted on the published official statistics of the construction industry and the overall economy in Malaysia between 1970 and 2009. Qualitative study involved interviews with a purposive sample of 21 industrial participants. This study identified a 32-year long building cycle appears in 1975-2006. It is superimposed with three shorter construction business cycles in 1975-1987, 1987-1999 and 1999-2006. The correlations of Construction labour productivity (CLP) and GDP per capita are statistically significant for the 1975-2006 building cycle, 1987-1999 and 1999-2006 construction business cycles. It was not significant in 1975-1987 construction business cycles. The Construction Industry Surveys/Census over the period from 1996 to 2007 show that the average growth rate of total output per employee expanded but the added value per employee contracted which imply high cost of bought-in materials and services and inefficient usage of purchases. The construction labour productivity is peaked at 2004 although there is contraction of construction sector in 2004. The residential subsector performed relatively better than the other sub-sectors in most of the productivity indicators. Improvements are found in output per employee, value added per employee, labour competitiveness and capital investment but declines are recorded in value added content and capital productivity. The civil engineering construction is most productive in the labour productivity nevertheless relatively poorer in the capital productivity. The labour cost is more competitive in the larger size establishment. The added value per labour cost is higher in larger sized establishment attributed to efficient in utilization of capital. The interview with the industrial participant reveals that the productivity of the construction sector is influenced by the economic environment, the construction methods, contract arrangement, payment chain and regulatory policies. The fluctuations of construction demand have caused companies switched to defensive strategy during the economic downturn and to ensure short-term survival than to make a profit for the long-term survival and growth. It leads the company to take drastic measures to curb expenses, downsizing, employ contract employment, diversification and venture overseas market. There is no empirical evidence supports downsizing as a necessary step in a process of reviving productivity. The productivity does not correlate with size of firm. A relatively smaller and focused firm is more productive than the larger and diversified organisation. However diversified company experienced less fluctuation in both labour and capital productivity. In order to improve the productivity of the construction sector, it is necessary to remove the negatives and flaws from past practices. The recommended measures include long-term strategic planning and coordinated approaches of government agencies in planning of infrastructure development and to provide regulatory environments which encourage competition and facilitate productivity improvement.

Malmquist indices of total factor productivity changes in the Australian construction industry

Construction is an important industry and forms a vital part of national economics in the world. Factors affecting the productivity of the construction industry should be measured appropriately to reflect its development situation and economic performance. The Malmquist index method with a novel decomposition technique is employed to estimate the total factor productivity of the Australian construction industry during the period 1990-2007 and to analyse the factors affecting the technological change in the industry. Research results exemplified by two input variables and one output variable elaborate how construction technology, pure technical efficiency and scale economy take effect in the change of construction productivity. In addition, based on temporal and spatial comparisons, the analysis for construction productivities reveals their changes over time and across the country. Proposals and recommendations are expected to be beneficial for policy making and strategic decisions to improve the performance of the Australian construction industry.

Energy productivity and total-factor productivity in the Australian construction industry

There is urgent need to consider energy consumption when measuring total-factor productivity in the construction industry. This paper adopts the Malmquist index method to investigate the factors affecting the energy productivity of the Australian construction industry and compares them with those decomposed from the total-factor productivity. An input-oriented distance function and a contemporaneous benchmark technology are employed to develop the data envelopment analysis models. The Malmquist productivity index is decomposed into the technological change, pure technical efficiency change and activity effect to gain comprehensive insights into changes of construction productivity in the Australian states and territories over the past two decades. Research results show that both energy productivity and total-factor productivity improved in Australia, particularly related to technological development. The pure technical efficiency and activity indices changed slightly over time or across regions. This study demonstrates that there exists a linkage between energy productivity and total-factor productivity through their technological and technical efficiency changes. The Australian construction industry could enhance these two productivities by introducing advanced technologies and implementing them efficiently.

Decomposition of temporal changes in construction labour productivity

Construction productivity is recognized as an indicator reflecting the performance efficiency and competitiveness of the industry. A large amount of research has been carried out focusing on the decomposition of the influential factors and the temporal trends of construction productivity changes, respectively. However, the decomposition of the temporal changes in construction labour productivity has not yet been explored. Analogous to the framework of the productivity frontier, this research argues for a four-component decomposition of the temporal changes in construction labour productivity, including technology, technology-utilization efficiency, the capital-labour ratio and production capacity. An error correction model is subsequently estimated using the panel data regression method to investigate the effects of these components on the temporal changes in construction productivity across a sample of the Australian construction industry. The empirical results con?rm that the effects of the four components on the temporal changes in construction productivity changes vary over the observed time periods. From the aggregate level, the technology-utilization efficiency and capital-labour ratio across the regions are found to be barriers to growth in Australian construction productivity. Nevertheless, the effects of technology-utilization efficiency and production capacity varied significantly over the three sub-periods, when innovative national economic systems were introduced.

Climate and construction delays: case study in Chile

Purpose – Construction projects usually suffer delays, and the causes of these delays and its cost overruns have been widely discussed, the weather being one of the most recurrent. The purpose of this paper is to analyze the influence of climate on standard construction work activities through a case study. Design/methodology/approach – By studying the extent at which some weather variables impede outdoor work from being effectively executed, new maps and tables for planning for delays are presented. In addition, a real case regarding the construction of several bridges in southern Chile is analyzed. Findings – Few studies have thoroughly addressed the influences of major climatic agents on the most common outdoor construction activities. The method detailed here provides a first approximation for construction planners to assess to what extent construction productivity will be influenced by the climate. Research limitations/implications – Although this study was performed in Chile, the simplified method proposed is entirely transferable to any other country, however, other weather or combinations of weather variables could be needed in other environments or countries. Practical implications – The implications will help reducing the negative social, economic and environmental outcomes that usually emerge from project delays. Originality/value – Climatic data were processed using extremely simple calculations to create a series of quantitative maps and tables that would be useful for any construction planner to decide the best moment of the year to start a project and, if possible, where to build it.

A comparative study on economic factors of construction industries in Australia and China

The construction sector produces the facilities needed for a large majority of the production of goods and services, in which a sizeable proportion of Gross Domestic Product is generated. Recent trends in the globalisation of construction markets indicate that many countries consider construction industry competitiveness as crucial, and are working to increase construction productivity, in particular where the construction industries play an important role in their economic development. This paper first points out the research importance in international construction. Based on economic analyses of construction industries, a study is then carried out to focus on the economic sizes and benefits of the Chinese construction industry and to compare them with the Australian construction industry. Results derived from such an international construction comparison will assist in the Australian construction communities understanding the construction markets and industries in China and will benefit in international construction participation and cooperation.

Envelopment methodology to measure and compare subcontractor productivity at the firm level

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.

Procuring OSM : base-line models of off-site manufacture business processes in Australia

A pressing cost issue facing construction is the procurement of off-site pre-manufactured assemblies. In order to encourage Australian adoption of off-site manufacture (OSM), a new approach to underlying processes is required. The advent of object oriented digital models for construction design assumes intelligent use of data. However, the construction production system relies on traditional methods and data sources and is expected to benefit from the application of well-established business process management techniques. The integration of the old and new data sources allows for the development of business process models which, by capturing typical construction processes involving OSM, provides insights into such processes. This integrative approach is the foundation of research into the use of OSM to increase construction productivity in Australia. The purpose of this study is to develop business process models capturing the procurement, resources and information flow of construction projects. For each stage of the construction value chain, a number of sub-processes are identified. Business Process Modelling Notation (BPMN), a mainstream business process modelling standard, is used to create base-line generic construction process models. These models identify OSM decision-making points that could provide cost reductions in procurement workflow and management systems. This paper reports on phase one of an on-going research aiming to develop a proto-type workflow application that can provide semi-automated support to construction processes involving OSM and assist in decision-making in the adoption of OSM thus contributing to a sustainable built environment.

Modelling multi-criteria decision analysis for benchmarking management practices in project management

The link between management practices and worker’s motivations impacting construction productivity is being considered as significant among the research community. This research aimed to identify and analyse the underlying attributes impacting construction productivity from the site management perspective. This research presents a framework designed to analyse and quantify the relative relevance of different drivers in the determination of productivity levels and the degree of effectiveness of potential opportunities for improving performance of overall projects. Owing to the complexity of construction projects and underlying conflicting drivers influencing higher worker’s productivity, the Analytical Hierarchy Process (AHP) is employed to deal with interdependent relationships within a multi-criteria decision-making model. In the analytical approach, the large unstructured decision parameters are identified first and then are broken down into the manageable and measurable components using a top down hierarchical structure. This paper demonstrates an example to illustrate how to empirically analyse and prioritise a set of influencing parameters as selection criteria in devising appropriate management practices to ensure higher productivity vis-à-vis optimum performance of projects.

Qualidade em obras públicas: um estudo comparativo entre as metodologias Seis Sigma, ISO 9000 e PBQP-H no RN

In Brazil the theme quality in public construction has been widely discussed in the early 1990s, with the creation of the Brazilian Program of Quality and Productivity for the Habitat (PBQP-H) which is strongly influenced by the wave of studies on issues of quality in the world, such as the ISO 9000. Over the years, other approaches have emerged and been consolidated, evolving from market and customer´s needs. An example is the Six Sigma methodology. This study aims to examine the Six Sigma, ISO 9000 and PBQP-H methodologies, noting the common elements, differences, gaps and how the methods are complementary, so that with the ongoing work, proposed initiatives can be developed to improve the quality that enables its application in public construction. Still aiming to optimize the deployment of the proposed initiatives, it was performed an analysis of ISO 9001 and PBPQ-H certifications in Brazil and in the state of Rio Grande do Norte, with respect to the construction industry and a case study to identify the factors that influence the adoption of initiatives to improve quality, and check if the selected construction company is prepared to implement the proposed initiatives. This research is characterized as exploratory and applied, with literature review and a case study. The data collection instrument was a questionnaire and the statistical analysis used a multidimensional scaling method. The conclusion is that the methodologies are compatible and complementary, and their integration could potentialize the goals set. It was identified that the state of Rio Grande do Norte has a few number of certifications in construction. Nine initiatives are proposed for implementation at construction companies. In the case study it was found that the studied company would be able to implement the suggestions proposed and the requirement for certification by clients and funding institutions influence the adoption of quality improvement initiatives. This result confirms the literature which states that top management support is crucial for the successful implementation of quality methodologies

La influencia en el aislamiento acústicoa ruido aéreo de los aireadores en las ventanas compactas

En la actualidad, el crecimiento de la población urbana, el incremento de la demanda energética junto al desarrollo tecnológico impulsado en los últimos veinte años han originado un estudio y replanteamiento de los sistemas constructivos empleados. Como consecuencia se han establecido nuevos marcos normativos, marcando nuevos objetivos de confort y de demanda energética. En España, el Código Técnico de la Edificación (aprobado en el Real Decreto 314/2006 de 17 de Marzo) es el marco normativo que establece las exigencias que se deben cumplir al proyectar construir, usar, mantener y conservar los edificios, incluidas sus instalaciones, con el fin de asegurar la calidad, seguridad y salud del usuario, respetando en todo momento su entorno. Para asegurar el cumplimiento de las exigencias del Código Técnico de la Edificación (CTE), se han elaborado diferentes Documentos Básicos (DB). Entre ellos están los documentos básicos DB HR-Protección frente al ruido y el DB HS-Salubridad. En el DB HS 3 Calidad del aire interior, se establecen las condiciones que deben de adoptarse para que los recintos de los edificios se puedan ventilar adecuadamente, eliminando los contaminantes que se produzcan de forma habitual durante un uso normal de los edificios, de forma que se aporte un caudal suficiente de aire exterior y se garantice la extracción y expulsión del aire viciado por los contaminantes. En el apartado 3.1, Condiciones generales de los sistemas de ventilación, se indica que las viviendas deben disponer de un sistema general de ventilación donde el aire debe circular desde los locales secos a los húmedos. Para ello los comedores, los dormitorios y las salas de estar deben de disponer de aberturas de admisión, pudiéndose resolver esta cuestión técnica con diversas soluciones. El DB HR Protección frente al ruido del CTE, establece unos valores del aislamiento acústico a ruido aéreo, entre un recinto protegido y el exterior, en función del uso del edificio y del nivel sonoro continuo equivalente día, Ld de la zona donde se ubique el edificio. El hacer compatibles el cumplimiento de las exigencias de los dos Documentos Básicos anteriormente citados, origina algunas dificultades en los proyectos de edificación actuales. Los proyectistas tienen que recurrir en la mayoría de los casos a nuevos sistemas constructivos o duplicaciones de soluciones existentes, evitando la manipulación de los elementos de regulación de entrada de aire en las viviendas. El objetivo fundamental de la Tesis presentada es el estudio de los efectos que producen la colocación de sistemas de aireación permanente en el aislamiento acústico a ruido aéreo de las ventanas compactas. Se comprueba la influencia de cada uno de los componentes de la ventana compacta: perfiles, unidades de vidrio, sistema de apertura, cajón de persiana, persiana, aireadores, etc. en el aislamiento a ruido aéreo del sistema completo. Los ensayos acústicos se han realizado mediante dos métodos: conforme a la norma UNE-EN ISO 10140-2:2011 Medición en laboratorio del aislamiento acústico al ruido aéreo de los elementos de construcción y mediante intensimetría acústica acorde a la norma UNE-EN ISO 15186-1:2004 Medición del aislamiento acústico en los edificios y de los elementos de construcción utilizando intensidad sonora. Los resultados obtenidos podrán ser de gran utilidad para todos los profesionales que intervienen en el proceso edificatorio: arquitectos, ingenieros, instaladores, promotores, fabricantes de productos, etc., tanto en la obra nueva como en la rehabilitación. En un futuro, podrían incorporarse a los Catálogos y Documentos de Aplicación del CTE, así como a los nuevos programas informáticos de diseño y aislamiento acústico. Con el conocimiento adquirido y su aplicación, se contribuirá a la mejora de la calidad de una edificación más sostenible y eficiente. Se incrementará la productividad y la competitividad de los fabricantes de materiales y sistemas constructivos, aumentando el grado de satisfacción del usuario final con el consiguiente aumento de la calidad de vida de los ciudadanos. También se ampliará el conocimiento técnico de este tipo de sistemas y la compatibilidad entre las distintas exigencias marcadas por la normativa. ABSTRACT At present, the urban population growth, the increase of energy demand and the technological development in the last twenty years have led to a rethinking of the used building systems. As a result, new regulatory frameworks have been established, setting new goals of comfort and energy demand. In Spain, the Building Code, Código Técnico de la Edificación (CTE) (RD 314/2006 of March 17th) is the regulatory framework that establishes the requirements to be met by projecting, building, using, maintaining and preserving buildings, including its facilities in order to ensure the quality, safety and health of the user, always respecting the environment. To ensure compliance with the requirements of the CTE, different technical requirements Documentos básicos (DB) have been developed. Among them, are the DB-HR-Protection against noise and DB-HS-Health. In the DB-HS- part3, Indoor Air Quality, are set the conditions needed to be taken into consideration so that the building enclosures can be adequately ventilated, eliminating pollutants that occur regularly during normal use of the buildings, so that a sufficient airflow of outdoor is supplied and a removal and extraction of stale air pollutants is guaranteed. In section 3.1, General Terms of ventilation systems, is indicated that dwellings must have a general ventilation system where air can circulate from dry to wet enclosures. For this, dining rooms, bedrooms and living rooms should have air intake, being able to resolve this technical issue with various solutions. The DB-HR Protection against noise, provides sound insulation values of airborne sound transmission between a protected room and the outside, depending on the use of the building and the equivalent continuous sound level day, Ld, in the area where the building is located. Satisfying the requirements of the two requirements mentioned above causes some difficulties in current building project. Designers have to rely in most cases, to new construction elements or duplicate existing solutions, avoiding the manipulation of the air intakes elements. The main objective of this Thesis is the study of the effects of permanent intakes systems in the acoustic insulation against airborne noise transmission in compact windows. The influence of each of the components of the compact window is determined: frames, glass units, opening systems, shutter box, trickle vents, etc. in the airborne sound insulation of the entire system. The acoustic survey were performed using two methods: UNE-EN ISO 10140-2: 2011 Laboratory measurements of sound insulation of building elements and UNE-EN ISO 15186-1:2004 Measurement of sound insulation in buildings and of building elements using sound intensity. The obtained results may be useful for all professionals involved in the building process: architects, engineers, installers, developers, manufacturers, etc. in the new construction developments and in rehabilitation. In the future, it could be added to building catalogues and applications of the Spanish Building Code, as well as to the new design and sound insulation software. With the acquired knowledge and its application, there will be a contribution to improve the quality of a more sustainable and efficient construction. Productivity and competitiveness of manufacturers of building materials and components will improve, increasing the degree of satisfaction of the final user with a consequent increase in the quality of life of citizens. Technical knowledge of such systems and compatibility between the various requirements set by the legislation will also expand.