and practical aspects and neglect organizational and administrative ones. .... SMEs :An Organizational life cycle perspective, Science direct. ,computers in ...
BSC Designer to Manage Construction Project Performance Information through Visual Analysis
Maya Rana1, Omran Jamal1, Hassan Bassam1, Ahmad Layal1, Parisa Ghodous2, Farzad Khosrowshahi3, Michelle Wishardth3 and Chris Gorse3 1Tishreen University, Syria; 2Université de Lyon 1, France and 3Leeds Becket University, Leeds, UK
iV2014 - 18th International Conference Information Visualization 15, 16, 17 and 18 July 2014, University of Paris Descartes -Paris –France Accordingly, The development of performance measurement system of the project aims to help project managers to supervise and monitor the project performance, where it becomes known that project management through integrated and balanced measurements will contribute to achieve significant improvement in the performance of such projects like meeting the requirements of the stakeholders successfully, and focusing on the critical areas for improvement (Sai,2007 ). Information Management Systems has defined as one of the critical success factors to apply performance Measurement system ( Patrizia , 2007 ). Patrizia has concluded that institutions focus on technical and practical aspects and neglect organizational and administrative ones. To bridge this gap management system such as PMS should be applied and supported by MIS. This system shall be essential to prevent the management disasters and it shall accelerate managerial change and dedicated institutional learning. It was clear in last years that information management was associated to a large extent to the visual presentation and Technology. (Aouad, 2000) stressed that the visual display of construction information will help to improve the presentation of construction information. Based on the above, we aim to propose a system for performance measurement using a system for performance information management that would be easy to be implemented, followed-up, and updated. In addition to the inclusion of a balanced set of indicators that help in the monitoring of the important areas and analyzing them visually which will help to improve the overall performance according to specific targets .
Abstract The success of performance measurement as a system to control and improve performance requires analysis of performance on a regular basis. Previous studies have shown that the managerial efforts required for collecting, saving, processing, and displaying progress data were the main obstacle to its actual application. Therefore, the proposal aim is to introduce performance measurement system through the use of BSC Designer which provides a good system for the performance information management (MIS). The application of the proposed system using BSC Designer database allows doing multiple comparisons, visual shows and analysis .It is a visual tool for information and knowledge management related to the performance achieved by the projects, this is done through the integration of information between the integrated performance indicators and targets and visualization display of information. Though it offers a clear and visible way to analyze and improve performance. Key Words: Performance measurement, Performance management, Visual analysis, MIS, BSC Designer
1. Introduction Interest in measuring the performance started clearly after the year 1990 where (Neely, 1990) mentioned that 3600 papers were published on performance measurement between the years 1994 -1995 which was described as revolution. (Waggoner,1990) mentioned that the performance measurement helps in performance monitoring and defining fields that need attention. In addition it enhances enthusiasm, improves communication, and activates accountability. (Atkins 1994) defines the flow of information that it is one of the three main reasons for building sector weakness, as the flow of information is the first part of monitoring process and therefore controlling the project performance.
2. Proposed system of performance measurement for construction projects Success of a performance measurement system depends on Selection of indicators, measurement methods, and the proposed framework and tool . So we have proposed balanced score card as a framework for the measurement and tracking system for performance, which is universally accepted and includes the four major prospective of measurement (prospective constitute basic dimensions to work within the
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institution) And each of them include a wide range of potential secondary standards. It was Created by( Kapalan and Norton) and differ from traditional methods to measure performance as including Late and Leading Indicators (The point of view of the customer, internal business processes, learning and growth, and financial point of view) (Figure 1).
can gives real effect and which does not give realistic results. The research found a list of the 25 most common tools for business management and BSC was the first of five tools most commonly used. There is another reason for preferring it which is its suitability for construction projects (Tennant, 2008) where research indicates that it has been tested for the possibility of actual application performance management models which are designed to measure the performance of projects and the result was to match each of the balanced scorecards and the European model of excellence EFQM in the field of construction management. Where most of the tools to the of projects performance measurement focusing on the financial aspects, and in spite of their usefulness, they are not sufficient because they are late indicators and lacked strategic focus, and they fail to provide information on the quality and other operations within the project. (Sai, 2004) . So the focus was to select balanced indicators that fill the gaps in performance measures which weaken the performance measures and limit the utilization of it in the correct way. We have depended on previous research in the orientation for the selecting the performance indicators taking in consideration local built environment. As appropriate performance indicators vary from one country to another depending on market conditions, policies, cultures, strategies and competitive environments require different standards ( 2000,Neely), and therefore it was necessary to use a set of indicators that fit Built Environment in Syria. Accordingly, a proposal has been made to use 9 indicators to measure and track the performance of the project, depending on the search results (Ahmad &Maya, 2014) and the most important indicators in measuring the performance of the construction with the relative importance of each of them in the table 1. After selecting performance indicators a proposal has been made to use BSC Designer Balanced Scorecard Software Version 6.2 as a system for measuring and monitoring performance, which is a program to simplify the process of creating and managing Balanced Scorecards or KPI groups (www.bscdesigner.com). Where the program allows for the establishment of a key performance indicators group, define relationships between groups and indicators and determine the relative importance of the indicators. Also it offers a flexible way to calculate performance values depending on the sets of indicators, such as the minimum and maximum values, target value, and baseline. Besides that, it introduces the formulas of values calculation according to the needs of the customer and allows exporting performance cards to Excel program for subsequent treatment and reading data from most known databases. The program also includes another effective feature that is the support in the design of the strategy map, which is an important way to display visual indicators and the relationships between them and to provide a graphic representation of the indicators and its values. The program also allows the use of attachments in order to exchange ideas, tasks, and reports which it is an
Costumer Fainance Objectives
Internal
Measures targets Initiatives
Education
Figure 1.four prospective for balanced scorecard .Source (Kaplan & Norton,2001) to evaluate whether the business carried out towards its strategic goals. Kaplan and Norton distinguished between the four prospective of the four Balanced Scorecard so late measurements help to know what was happened in the past, and leadership measurements help in the control and guidance of future performance (Kaplan &Norton,2001). Norton then proposed in 2004 to create a strategies map that emphasized the link between the four aspects of performance, Where the Balanced Scorecard method has developed from measurement system to communication system that provides in visual show consists of a single page what the organization should do in every aspect or dimension of performance for the successful implementation of its strategy. The strategic map includes reason and effect relationship for each of the components on the performance according to four its dimensions (Niven, 2006) we chose the method because it is distinguish globally in the field of measuring and managing the performance, as the research related to the management tools suggest, ( Darrell Rigby,2013) The method of balanced scorecards is one of the five famous tools used globally in business management, since 1993 Bain & company (which is one of the world's leading consulting firms in the field of management ) did research related to "trends and management tools". It stated the order of its method in its report for the year 2013, which had 1208 interviews for managers from all over the world in order to search for tools that help achieve financial goals especially in light of the global economic crisis to understand which
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for Construction Company’s work in building field in Syria.
effective way for the cooperation between users and improve the performance of the company in addition to the graphical diagrams, charts and counters, to facilitate the visual presentation of performance data.
Table 1 suggested indicators for performance measurement and improvement. Source, (Ahmad &Maya, 2014)
Table 2 measurement formulas for performance measurement for proposed indicators. Source, (Ahmad &Maya, 2014)
Table 2 shows measurement formulas. The values of maximum and minimum limits of performance were set according to (Uk Construction, 2013). In the suggested indicators and Baseline and goal value to measure progress in improvement with measurement formula has been involved in the program to evaluate the performance and improvement. The goal value for performance improvement has been defined according to the requirements of technical management team in the General Co. for Construction and Building as a model
3. Practical application for BSC Designer As a result, the case study is used to enhance Practical application for BSC Designer; Performance evaluation system has been applied in Social Insurance Building Project in Lattakia/Syria.
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Figure 2 shows how values have been inserted in the program through measurement Log which include the needed details. Also we can attach any required patterns like data collection pattern where all the questionnaires used for measurement some indicators have been attached, also, the performance values gathered from Excel Program are imported to the log.
Red colour less than 20% (unacceptable) Orange from 20-40% (Marginal) Yellow colour from 40-60% (good) Green from 60-80% (Excellent) Dark green till 100% (Exceptional)
Figure 3. Performance indicators visualization In BSC Designer
Figure 2.Data log in BSC Designer Source, (www.bscdesigner.com)
Indicator values can be presented individually and separately according to each sub-indicator. Figure 3 shows how the data entered in previous log can be retrieved to visual useful comparable information for easier performance and progress value analysis for the measured indicators. Figure 4 shows the planning effectiveness indicator performance measures from June to December 2013 it’s clearly obvious that it was within the negative and red area (unaccepted).
The program has different graphic diagrams that suits the needed way to data show and analysis which suits each indicator and the performance counter which shows the marginal fields to the performance indicators. Colors
have been used to illustrate the performance limits clearly as follows:
Figure 4 Visual representations for effectiveness planning indicator value for six months Source, (Ahmad &Maya, 2014)
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Figure 5 Visual representations (performance counter) The axis of the internal processes. Source, (Ahmad &Maya, 2014) [2] Andrew Rees. An economic analysis of the sector. Department for Business, Innovation and Skills. UK It can also show performance value of each axis Construction. July,2013 (prospective) of the BSC axes (performance counter) [3] G.Aouad, M.Ormerod, M.sun,M.Sarshar, p.Barrett, Figure 5 shows the axis of the internal processes which is M.Alshawi: Visualization of construction information : A clear in Orange colour ( Marginal). process view. International Journal of Computer-integrated and construction,Vol2 ,no 4 ,2000,206-214. alue (Ahmad &Maya,design 2014) 4. Conclusion [4] W. S .Atkins, Strategies for the European Construction Sector, Office for Official Publications of The European Communities,Brussels,1994. In the paper we proposed a system for performance [5] Darrell Rigby, Barbara . “Management Tools & Trends" measurement (PMS ) for construction projects. This 2013, http://www.bain.com/Images/BAIN_BRIEF_Management system turned out to be a good system for performance _Tools%26_Trends_2013.pdf information management MIS through (collection, .[6] R.S. Kaplan, D.P. Norton, The Strategy-Focused processing, analysis prediction, and visual display of Organization: How Balanced corecard Companies Thrive in the information). The system includes a group that includes New Business Environment, Harvard Business School Press, 9 balanced performance indicators which are distributed Boston, MA, 2001. according to four BSC points (financial, customer [7] Niven, P.R.. Balanced Scorecard Step-by-Step: Maximising satisfaction, internal processes, learning and growth). Performance and Maintaining Results. 2nd Edition. New Jersey: Practical application of the proposed system on the case John Wiley and Sons.(2006). study shows that the proposed system for performance [8] A.Neely,The performance measurement revolution: Why measurement is applicable and easy to use. now and what next .International Journal of Operations and It allows identifying the overall performance of the production management 19(2),1999,205-228 project so as the improvement of one indicator will not [9] A. Neely, M. Bourne , M. Kennerley :Performance be the expense of the other. This can be seen from the measurement system design: developing and testing a processvisual comparison of the indicators values in the radial based approach ,International Journal of operations & diagram. In addition to that, it enhances the possibility of Production Management, Vol. 20 No. 10, 2000, pp. 1119-1145 [10] Patrizia Garengo, Sai Nudurupati, Umit Bititci: a continuous visual supervision on the implementation Understanding the relationship between PMS and MIS in and progress processes through constant updating of the SMEs :An Organizational life cycle perspective, Science direct database. The presentation of the sub-indicators values ,computers in industry 58(2007),677-686. allows the company to compare and make the visual [11] Sai On Cheung*, Henry C.H. Suen, Kevin K.W. Cheung, analysis of performance and progress values and PPMS: a Web-based construction Project Performance accordingly the application of solutions and adequate Monitoring System, , City University of Hong Kong, procedures to improve its performance in the best way. Automation in Construction 13 (2004) 361– 376. Though it allows to define the reasons of deviation and [12] Tennant, S and Langford, D ,The construction project diagnosis the trouble in time and thus determine places balanced scorecard. In: Dainty, A (Ed) Procs 24th Annual ARCOM Conference, 1-3 September 2008, Cardiff, UK, of deficiency in order to give them the priority and Association of Researchers in Construction Management, 361Proceed with corrective procedures. 370 [13] D. Waggoner, A. Neely, M. Kennerley, The forces that References shape organizational performance measurement system : an interdisciplinary review, International Journal of Production [1] Ahmad Layal, Maya Rana. Improve performance of Dynamics 60-61,1999,53-60. construction project using Automated follow up for performance Measurement indicators, Master Thesis, Syria, Tishreen university,2014.
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