For project management controls, benchmarking is a powerful and advantageous tool that takes a systemic approach to project controls. Using benchmarking can help improve your project performance overall. Amidst the rising competition in the engineering and construction industry, project benchmarking can be your savior.
Instead of getting discouraged by the examples of disappointing implementation results, you can look for the right guidance regarding the process. If you are looking for guidelines on the benchmarking process, you are just on the right page.
This article will guide you on the construction project benchmarking process defining each step for your convenience.
Benchmarking process for your next construction project
Benchmarking a project is a cyclic process, which means all the steps will repeat themselves eventually to give you the best results. It starts from basic definitions and continues for action until you need new definitions. The process can help your project stay free of delays and cost escalations, but to be on the safe side, you must keep in touch with quantum and a delay expert for your project claim solutions.
Following is the step-wise guide for carrying out benchmarking for your next construction project:
Process definitions
First of all, when you start with the benchmarking process, you have to define the reference points that will serve as benchmarks for you. These reference points will help you make the measurements and give you clarity on project performance. The metrics which measure the performance are derived from these benchmarks.
To start with the benchmarking process, you will need to develop a solid understanding of the project’s objectives. After this understanding of objectives, you will be able to align the benchmarking process with these goals.
Data collection
Every analysis is based on some data. For project benchmarking, once you have defined the reference points, which are the basic metrics for performance measurement, you have to collect data to be measured against those metrics. The quality of data used in an analysis directly affects the quality of insights gained from analysis.
Thus, make sure you collect data with utmost vigilance and do not compromise on its veracity. Instead of collecting just too much measurable data, collect only those bits of data that are critical to the performance of your project.
Analyze the data
After collecting data, you have to sort it out. Sorted data is then yours to measure against the KPIs decided in the first step. You will thus be able to assess the measured performance and compare it with the reference benchmarks as set up in the first step. This will give you an insight into the performance compared to the goals that your company has set up for the project.
The goals or benchmarks set at the beginning of the benchmarking process must be realistic so that there are no surprises when problems occur in the execution of plans.
Start action
Once you have analyzed the measured performance against the benchmark, now it is time to take action. This step reveals the quality of work that you carry out in the preceding three steps. From reference point setup, data collection and comparison of progress with those reference points, if everything is in sync with each other, it reflects high-quality work.
Now, you can adequately implement your plans after identifying the performance gaps and thus making improvement plans. When you implement the improvement plans with prudence and vigilance, you can consider your benchmarking work to be successful.
Repeat
Benchmarking is not a one-off process. Once you have implemented the improvement plans, it is time to restart the process from setting new reference points. This time, you will incorporate all the lessons that you learned while going through the process for the previous cycle.
Repetition will help you with highlighting mistakes during the benchmarking process and validate the process as you go through each step again. This will also help you change reference points or KPIs when your company’s priorities or market dynamics change.
Is your construction project around the corner?
The construction process is complex, and the job of a construction project manager is highly demanding. The burden is difficult to manage without incorporating some controls. One of the ways to maintain control of your project is benchmarking. It involves setting up reference points working as comparison metrics against which you can measure your project’s performance after a given time.
Once you have set the reference benchmarks, you have to collect data indicating performance, and then analyze it against the reference attributes. Lastly, you have to implement the steps of improvement which you have concluded based on analyzed performance. If need, you will have to carry out a benchmarking process in a cyclic manner to keep enhancing the business process.