Tracking labor productivity in the construction industry is necessary to improve yield without sacrificing quality or compromising safety.
Especially since the industry already grapples with productivity issues (in fact, non-productive tasks cost the industry $177 billion in labor costs per year), boosting efficiency can help stimulate progress so you meet your project’s deadlines.
Keep reading to discover strategies for tracking productivity in construction, and how the SmartBarrel device enhances labor tracking.
What is productivity tracking?
Productivity in construction is defined as a way to measure output. Tracking productivity involves calculating the amount of work completed on a project on a day-by-day or week-by-week basis. Metrics and benchmarks are often used during and after the project to evaluate success.
Common metrics used involve time (hours worked), money (how much it costs to complete the job in a given time), and resources (equipment, material, and labor required).
One benefit of productivity tracking is that it can lead to more efficient spending, reducing the amount of money that your construction firm uses. Knowing exactly which cost codes are exceeding budgets and which equipment rentals are idle can lead to more informed decision-making and better resource management and allocation.
Another benefit is that you’ll be able to create more accurate estimates for future projects. Having data on production costs lets you apply this information to all of your construction firm’s projects, cutting costs wherever possible.
1. Invest in productivity tracking technology
For large projects, tracking labor productivity in construction may sound like a huge and tedious task, but it’s only a chore if it’s done manually.
Manual tracking through tools like spreadsheets or back and forth email attachments leads to disorganization, unnecessary administrative costs, and the possibility of data entry errors. Not only does it waste time that could be better spent on other tasks, but human oversight due to manual tracking can end up causing significant monetary loss and create conflict in the workplace.
In fact, a McKinsey study states that there are several actions that construction firms can take to increase productivity by 50 to 60% percent, one of which includes integrating technology on the job site.
Consider tools like the SmartBarrel device that automate the labor tracking process, freeing up time for workers to analyze data rather than collect it.
2. Establish metrics
To track productivity in construction, you’ll have to know exactly what you’ll want to be analyzing. Here are some metrics commonly used by construction professionals.
Benchmarks
Benchmarks measure construction performance in smaller segments.
One type of benchmark is daily minimum production tracking, which determines the minimum amount of work that needs to be completed per day. It’s best used for crew sizes that are consistent, with tasks that will take up large amounts of time. To implement this benchmark, observe how many days one task takes and apply the information to other tasks accordingly.
Another type of benchmark is dynamic production tracking. It’s a more itemized approach and is suited for projects that have many different components. It involves breaking the project into smaller, more specific tasks, determining how long each task will take to do, and establishing a goal for completion.
Labor productivity
Labor productivity determines how much value a crew has provided per hour. It’s done by dividing the team’s output (whether it’s the number of tasks they completed or, for example, the number of bricks they laid) by the number of hours they worked.
A manager can then take this final number and compare it to labor costs, as well as the project’s overall value. This helps them determine whether the crew is providing enough value and whether it will affect the project’s profit margins, especially since productivity in construction tends to correlate with costs.
Workforce utilization
Workforce utilization calculates the amount of working time used for billable work. It’s a ratio that represents how your workers are using their time and if they’re managing it effectively.
A low workforce utilization rate indicates that workers aren’t using their time productively, which ends up costing you and your construction firm money.
High workforce utilization rates can be great, but you may have to consider whether that means your workers are lacking downtime. Without breaks, workers are prone to burnout. It can also mean they’re not being given room for development activities to advance their career.
3. Analyze data and consider external factors
Along with tracking productivity in construction, it’s important to analyze the data you receive. If your numbers aren’t looking too good, consider whether there are external factors affecting productivity.
Factors that can slow down or completely halt production involve:
- Labor or supply shortages
- Malfunctioning equipment
- Bad weather
- Permit delays
- Holidays
Any downtime for workers should also be factored in.
Improved construction productivity tracking with the SmartBarrel device
Labor and productivity tracking don’t have to be difficult. The SmartBarrel device is an easy-to-use tool that simplifies labor tracking.
Requiring little to no IT maintenance, our device is suited for job sites of all sizes, from small residential sites to high-rise and commercial sites. Solar-powered, weatherproof, and LTE-connected, the device is built to withstand falls.
Workers check in through keypad input, RFID fob, and biometric facial verification. The device also comes with a flash function, so workers can check in pre-sunrise with no problem.
But the SmartBarrel device is not simply a time clock. Our solution tracks productivity, automates tasks, and allows you to split cost codes across shifts. It’s construction tracking made simple.
Improve productivity on the job site by getting access to meaningful data. The device collects accurate data from the field that you can trust, and it provides easy-to-understand insights right at your fingertips, eliminating the need for you to manipulate data in Excel. Easy-to-follow, automated insights save you time and money.
All information is accessible in location, with payroll, cost tracking, and phase tracking information centralized in one place. Never shuffle through file stacks again.
Ready to improve your job site’s productivity and labor tracking? Book a demo with SmartBarrel today!
