Quantifying Productivity

Introduction to Statistical Productivity Improvement (SPI)

We use a proprietary methodology called Statistical Productivity Improvement (or SPI) to measure, analyze, and improve the processes associated with the KRPs. SPI utilizes traditional construction work sampling techniques to collect data and couples that with a powerful data management system designed specifically by PER for SPI applications.

Our system, Productivity Data Management System (PDMS), is an internet-based application that streamlines and fool-proofs the process of data collection and also provides comprehensive analysis tools that allow our consultants, and ultimately our clients, to evaluate the information across dozens of "what-ifs" in just a few clicks of the mouse.

This analysis will yield information that allows project management to better understand and quantify the impact of productivity barriers, and to subsequently develop appropriate action plans to improve productivity. SPI information is statistically-valid (95% confidence level) due to the statistical methods employed. The information to be analyzed is also timely (almost real-time once statistical thresholds are crossed) due to the functionality of PDMS. SPI information serves as a baseline against which all future improvements for that project/site are judged.

Yet another benefit is its usefulness in making project/site comparisons. This offers an advantage over traditional productivity measurement methods, which sometimes require changes in how an item is measured from job to job for logistical and/or strategic reasons. With SPI, the basis never changes, which in turn offers an "apples to apples" measurement consistency from site to site.

Forecasting your PF factor so you can be proactive

SPI does NOT replace Productivity Factors (PFs). PFs are critical measurements that not only give you an indication of productivity, but also (and more appropriately) tell management how accurate their estimating/budgeting efforts were for that given project. This is commonly referred to as 'Budgetivity.'

SPI is not intended to replace Productivity Factors. It does, however, offer an outstanding complement to PFs as it should proactively correlate to PF measurements, literally forecasting PF reporting. It will also allow "apples to apples" comparisons between two or more projects regardless of the estimating basis for each. These standard comparisons can provide the basis for best practice and lessons learned sharing between projects.

What type of projects can benefit from SPI?

Any type of project can benefit from SPI implementation. Capital, maintenance, and fabrication projects, as well as outages and turnarounds can all benefit from SPI implementation. Projects from any industry and of all sizes can enjoy the benefits of SPI. As the workforce dips below 100 and/or project completion is within 21 days, more compelling reasons to implement are necessary to justify the analysis.

Those reasons may include the need to avoid liquidated damages associated with schedule slippages. In cases like this, SPI can offer value with even a small workforce and duration. Improved project efficiencies can result in time taken off the schedule and 10% or more of direct field labor cost savings. Please call us and let us look at your specific needs and tell you whether or not we can add value.

How can PER help?

Our team has over 20 years of experience in the construction/maintenance industry. With experience working across multiple industry and facility types, PER can design the SPI solution that works best for your outage, turnaround, project or site. Our team of consultants can establish a baseline and facilitate action plan development with your team. If you prefer, we can also train your employees in SPI administration to optimize the long-term benefit of the program.

Call us today and investigate the possibilities SPI could bring to your business.

[1] Conceptual Cost Estimating Manual, 2nd Edition, 1984 by John S. Page