Proposed System for Measuring Project Performance Using Process-Based Key Performance Indicators

Despite some evidence of its usefulness, performance measurement by using Key Performance Indicators (KPIs) in the construction industry also has its critics. Among the shortcomings attributed to existing KPIs is the fact that almost all of them are product oriented. This means that the indicators are mostly used for review purposes after a project is completed and do not provide the opportunity to control the work whilst the project is still in progress. Many researchers have agreed on the need for a new approach that considers the construction process and allows active control. This paper describes the design of a proposed generic system for measuring process performance. As a basis for measuring process performance, the proposed measurement system relies on a series of questions related to both process completeness and process quality. The structure of the measurement system is on the basis of the findings of an earlier stage of the research that had resulted in the development of a number of process-based KPIs and the key issues they encompass. The appropriateness of the proposed measurement system has been tested on two on-going projects. The testing has shown that the proposed system produces relatively accurate indications of actual performance of construction projects. In this research, it was not possible to test the validity or the effectiveness of the proposed measurement system for control in practice. This is because of the long timescales involved in real-life projects and because of the possible influence of control actions taken by project management between the various processes. DOI: 10.1061/(ASCE)ME.1943-5479.0000078. (C) 2012 American Society of Civil Engineers.