Construction efficiency, also known as “operational efficiency”, is the ability of a company to provide products or services in the most cost-effective way without compromising the quality of work. Performance in the construction industry is notoriously low, with only a small fraction of a building completed each day. To improve efficiency and increase productivity, the industry must move away from a hostile contracting environment and adopt a system focused on collaboration and problem solving. There are several strategies that can be implemented to boost efficiency in the construction industry. These include:1.Adopting a Collaborative EnvironmentThe construction industry is traditionally characterized by a competitive environment, where contractors are pitted against each other for contracts.
This can lead to a lack of collaboration and communication between contractors, resulting in delays and cost overruns. To improve efficiency, the industry should move towards a more collaborative environment, where contractors work together to solve problems and share resources.
2.Utilizing Prefabricated ComponentsSome sectors of the construction industry could make a more radical change if they adopted a mass-production system inspired by manufacturing. This system would involve most of a construction project being built from standardized prefabricated components outside the facilities of a factory. This is known to be more efficient than traditional construction due to the lower amount of waste and heavy machinery.
3.Leveraging TechnologyConstruction projects generate mountains of data, much of which is stored in various programs and spreadsheets.
The construction sector is in the lowest range of sophistication in the McKinsey Global Purchasing Excellence Survey, suggesting there is plenty of room for improvement. A combination of best practices observed in other sectors and innovative, digitally enabled approaches can improve reliability and predictability.
4.Improving Risk ManagementA construction site that is exposed to the elements and where most of the work is done by subcontractors who interact with each other has much greater intrinsic variability. Both government agencies and industrial companies can ensure that there are robust non-technical risk management programs in place to help proactively manage non-technical risks in their projects.
5.Developing Standard DesignsOnly 50 percent of those surveyed in the MGI Construction Productivity Survey said that their companies currently have a library of standard designs. Having standard designs can help streamline processes and reduce costs by eliminating unnecessary steps.
6.Investing in TrainingInvesting in training for employees can help improve efficiency by ensuring that workers are up-to-date on the latest technologies and techniques.
This can help reduce errors and increase productivity.