In an attempt to evaluate the efficiency of labor-intensive construction operations, project managers compare actual with historical productivity for equivalent operations. However, this approach towards examining productivity only provides a relative benchmark for efficiency and may lead to the characterization of operations as authentically efficient when in reality such operations may be only comparably efficient.Optimal labor productivitythe highest sustainable productivity achievable in the field under good management and typical field conditionscan provide an absolute benchmark for gauging performance. This optimal productivity level is lower than the productivity frontierthe theoretical maximum achieved under perfect conditionsbecause of system inefficiencies, which emerge due to factors outside the control/influence of project managers. Conversely, optimal labor productivity tends to be higher than actual labor productivitythe productivity achieved in the fieldbecause of operational inefficiencies, which are the result of suboptimal managerial strategies. Estimating the magnitude of these system and operational inefficiencies will help project managers determine optimal labor productivity.This paper develops a two-prong strategy for estimating optimal labor productivity. The first prong represents a top-down approach that estimates optimal productivity by introducing system inefficiencies into the productivity frontier. A Qualitative Factor Model is used to determine the impact of system inefficiencies. This top-down approach yields the upper level estimation of optimal labor productivity. The second prong is a bottom-up approach that determines optimal labor productivity by removing non-contributory work from actual productivity in a discrete event simulation. This bottom-up approach generates the lower level estimation of optimal labor productivity. An average of the upper and lower limits reveals the best estimate for optimal labor productivity.In conjunction with a relevant literature study and a discussion of the twoprong approach's methodology, this paper ultimately analyzes data from a pilot study, presents results, and evaluates the feasibility of this two-prong strategy for estimating optimal labor productivity in construction operations.
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INTRODUCTIONProductivity is generally defined as the ratio of output to input. Yi and Chan (2013) concluded that hourly output is the most reliable measurement of productivity for construction activities. For labor-intensive operations, the focus of analysis is labor productivity, which measures the input as labor hours and the output as installed quantities (Dozzi and AbouRizk 1993). Traditionally, such labor productivity has been benchmarked against historical averages. However, this practice only provides a relative measure of efficiency since no objective yardstick exists. Optimal labor productivity, defined as the level of sustainable productivity that may be achieved in the field under good management and typical field conditions (Son and Rojas 2...
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