Performance measurement in construction logistics

The need for performance measurement systems is imminent in the construction "rms. Construction "rms have many simultaneously ongoing construction projects, from which the relevant performance information is needed. There are also tens of material groups and subcontractors, whose performance should be monitored together with construction "rms' practices. In addition to monitoring, performance measures can also be used as a basis for progressive improvement of company productivity. In this paper, a new framework is introduced for measuring construction logistics. It is a two-dimensional model where measures are grouped by the use of measures and by the focus of measures. The "rst dimension of the classi"cation; use of measures contains two kinds of measures. The "rst measures, called improvement measures, help construction industry to "nd out the problems with current practices. These measures are mainly used during development projects. The second measures, called monitoring measures, are used for continuous monitoring of operations. These measures are vital, because both "rms' top management and operational managers need continuous feedback on operational activities. The second dimension of the framework is the focus of measures. It clari"es at which organisational level measures can be used. There should be information available at the company and project level, as well as at the speci"c supplier or subcontractor level. The paper presents concrete measurement experience gathered from a number of practical cases. It illustrates examples of both improvement and monitoring measurement results. ( 2001 Elsevier Science B.V. All rights reserved.